Labor Ready Reports First Quarter Earnings In Line With Expectations

Apr 18, 2001, 01:00 ET from Labor Ready, Inc.

    TACOMA, Wash., April 18 /PRNewswire/ -- Labor Ready, Inc. (NYSE:   LRW),
 the nation's leading provider of temporary manual labor, today announced its
 financial results for the first quarter ended March 30, 2001.  Revenue
 increased 4.8% to $202.7 million for the first quarter of 2001 from
 $193.5 million in the first quarter ended March 31, 2000.  Net loss for the
 first quarter of 2001 was $3.0 million, or $0.07 per share compared to a loss
 of $2.3 million, or $0.05 per share in the first quarter of 2000.  This is in
 line with analysts' consensus expectations.
     Dick King, Labor Ready's President and Chief Executive Officer said,
 "While our sales were lower than expected during the quarter, we are pleased
 with the improvement we have made in our gross margins.  The changes we have
 implemented over the past six months have resulted in a 60 basis point
 improvement in the first quarter of 2001 over the fourth quarter of 2000.  We
 anticipate similar improvements in the coming quarters as we continue to
 implement new pricing strategies."
     During the first quarter, Labor Ready opened 22 new offices and closed
 14 offices.  At the end of the first quarter of 2001, the company operated
 824 offices throughout the United States, Canada, Puerto Rico and the United
 Kingdom.  Plans for 2001 include opening approximately 25 offices, reduced
 from the previously announced 50-75.
     King continued, "Consolidation of our network of field offices has
 improved Labor Ready's profitability without significantly impacting our
 ability to service our customers.  Although our plan to open 25 new offices in
 2001 was largely completed during the first quarter, we will continue to
 strategically open new offices in locations we believe will rapidly reach and
 exceed our performance standards."
     King concluded, "Over the past two quarters, we have reduced annual
 operating costs by more than $10 million, promoted exceptional employees to
 positions in which they can add greater value to the overall company and
 focused our efforts on improving sustainable long-term profit growth.  The
 second quarter should see additional consolidation of offices and further
 reductions in operating costs. Although we anticipate little revenue growth
 over the remainder of the year, with the strict controls we are implementing
 on operating costs, we believe a 10% to 15% improvement in year-end earnings
 is attainable."
 
     Based in Tacoma, Washington Labor Ready is the nation's leading provider
 of temporary manual labor to the light industrial and small business markets.
 Labor Ready operates more than 800 dispatch offices in 50 states, Canada,
 Puerto Rico and the United Kingdom.
 
     This news release contains forward-looking statements, such as statements
 about prevailing economic conditions, future potential revenue growth, plans
 to open new offices, improvements to profitability, the success of cost
 control measures and other factors that may affect the Company's financial
 results and operations in the future.  The Company's actual results are,
 however, subject to a number of risks, including (1) economic conditions in
 its key market areas; (2) the ability of Labor Ready to continue to expand and
 serve clients in the face of new and existing competition; (3) uncertainties
 regarding its ability to manage and continue its rapid growth; and (4) other
 risks described in the Company's 2000 Form 10-K on file with the Securities
 and Exchange Commission.
 
                                 LABOR READY, INC.
                     SUMMARY CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share amounts)
 
                                                       Thirteen Weeks Ended
                                                   March 30,          March 31,
                                                      2001              2000
                                                           (unaudited)
 
     Revenues from services                        $202,736           $193,450
     Cost of services                               142,362            134,736
     Gross profit                                    60,374             58,714
     Selling, general and
      administrative expenses                        63,165             60,767
     Depreciation and amortization                    2,068              1,765
     Loss from operations                            (4,859)            (3,818)
     Interest income                                     84                  8
     Loss before tax benefit                         (4,775)            (3,810)
     Tax benefit on loss                             (1,773)            (1,491)
     Net loss                                       $(3,002)           $(2,319)
 
     Basic net loss per common share                 $(0.07)            $(0.05)
 
     Diluted net loss per common share               $(0.07)            $(0.05)
 
     Weighted average shares outstanding:
       Basic                                         40,718             42,818
       Diluted                                       40,718             42,818
 
 
                                 LABOR READY, INC.
                        SUMMARY CONSOLIDATED BALANCE SHEETS
                             (in thousands of dollars)
 
                                                             As of
                                                  March 30,       December 31,
                                                     2001               2000
     Assets                                                (unaudited)
       Current assets
         Cash and cash equivalents                  $31,048            $36,048
         Accounts receivable, net                    77,867             93,017
         Other current assets                        24,909             21,341
           Total current assets                     133,824            150,406
       Property and equipment, net                   44,635             43,402
       Other assets                                  13,948             11,615
           Total assets                            $192,407           $205,423
 
     Liabilities and shareholders' equity
       Current liabilities                          $47,397            $56,247
       Long-term liabilities                         37,598             37,072
         Total liabilities                           84,995             93,319
       Shareholders' equity                         107,412            112,104
           Total liabilities
            and shareholders' equity               $192,407           $205,423
 
 

SOURCE Labor Ready, Inc.
    TACOMA, Wash., April 18 /PRNewswire/ -- Labor Ready, Inc. (NYSE:   LRW),
 the nation's leading provider of temporary manual labor, today announced its
 financial results for the first quarter ended March 30, 2001.  Revenue
 increased 4.8% to $202.7 million for the first quarter of 2001 from
 $193.5 million in the first quarter ended March 31, 2000.  Net loss for the
 first quarter of 2001 was $3.0 million, or $0.07 per share compared to a loss
 of $2.3 million, or $0.05 per share in the first quarter of 2000.  This is in
 line with analysts' consensus expectations.
     Dick King, Labor Ready's President and Chief Executive Officer said,
 "While our sales were lower than expected during the quarter, we are pleased
 with the improvement we have made in our gross margins.  The changes we have
 implemented over the past six months have resulted in a 60 basis point
 improvement in the first quarter of 2001 over the fourth quarter of 2000.  We
 anticipate similar improvements in the coming quarters as we continue to
 implement new pricing strategies."
     During the first quarter, Labor Ready opened 22 new offices and closed
 14 offices.  At the end of the first quarter of 2001, the company operated
 824 offices throughout the United States, Canada, Puerto Rico and the United
 Kingdom.  Plans for 2001 include opening approximately 25 offices, reduced
 from the previously announced 50-75.
     King continued, "Consolidation of our network of field offices has
 improved Labor Ready's profitability without significantly impacting our
 ability to service our customers.  Although our plan to open 25 new offices in
 2001 was largely completed during the first quarter, we will continue to
 strategically open new offices in locations we believe will rapidly reach and
 exceed our performance standards."
     King concluded, "Over the past two quarters, we have reduced annual
 operating costs by more than $10 million, promoted exceptional employees to
 positions in which they can add greater value to the overall company and
 focused our efforts on improving sustainable long-term profit growth.  The
 second quarter should see additional consolidation of offices and further
 reductions in operating costs. Although we anticipate little revenue growth
 over the remainder of the year, with the strict controls we are implementing
 on operating costs, we believe a 10% to 15% improvement in year-end earnings
 is attainable."
 
     Based in Tacoma, Washington Labor Ready is the nation's leading provider
 of temporary manual labor to the light industrial and small business markets.
 Labor Ready operates more than 800 dispatch offices in 50 states, Canada,
 Puerto Rico and the United Kingdom.
 
     This news release contains forward-looking statements, such as statements
 about prevailing economic conditions, future potential revenue growth, plans
 to open new offices, improvements to profitability, the success of cost
 control measures and other factors that may affect the Company's financial
 results and operations in the future.  The Company's actual results are,
 however, subject to a number of risks, including (1) economic conditions in
 its key market areas; (2) the ability of Labor Ready to continue to expand and
 serve clients in the face of new and existing competition; (3) uncertainties
 regarding its ability to manage and continue its rapid growth; and (4) other
 risks described in the Company's 2000 Form 10-K on file with the Securities
 and Exchange Commission.
 
                                 LABOR READY, INC.
                     SUMMARY CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share amounts)
 
                                                       Thirteen Weeks Ended
                                                   March 30,          March 31,
                                                      2001              2000
                                                           (unaudited)
 
     Revenues from services                        $202,736           $193,450
     Cost of services                               142,362            134,736
     Gross profit                                    60,374             58,714
     Selling, general and
      administrative expenses                        63,165             60,767
     Depreciation and amortization                    2,068              1,765
     Loss from operations                            (4,859)            (3,818)
     Interest income                                     84                  8
     Loss before tax benefit                         (4,775)            (3,810)
     Tax benefit on loss                             (1,773)            (1,491)
     Net loss                                       $(3,002)           $(2,319)
 
     Basic net loss per common share                 $(0.07)            $(0.05)
 
     Diluted net loss per common share               $(0.07)            $(0.05)
 
     Weighted average shares outstanding:
       Basic                                         40,718             42,818
       Diluted                                       40,718             42,818
 
 
                                 LABOR READY, INC.
                        SUMMARY CONSOLIDATED BALANCE SHEETS
                             (in thousands of dollars)
 
                                                             As of
                                                  March 30,       December 31,
                                                     2001               2000
     Assets                                                (unaudited)
       Current assets
         Cash and cash equivalents                  $31,048            $36,048
         Accounts receivable, net                    77,867             93,017
         Other current assets                        24,909             21,341
           Total current assets                     133,824            150,406
       Property and equipment, net                   44,635             43,402
       Other assets                                  13,948             11,615
           Total assets                            $192,407           $205,423
 
     Liabilities and shareholders' equity
       Current liabilities                          $47,397            $56,247
       Long-term liabilities                         37,598             37,072
         Total liabilities                           84,995             93,319
       Shareholders' equity                         107,412            112,104
           Total liabilities
            and shareholders' equity               $192,407           $205,423
 
 SOURCE  Labor Ready, Inc.