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Trueblue Q1 2016 Press Release Exhibit TRUEBLUE REPORTS FIRST QUARTER 2016 RESULTS

The following excerpt is from the company's SEC filing.

--TrueBlue, Inc. (NYSE:TBI) announced today that revenue for the first quarter of 2016 was

$646 million

, an increase of

percent, compared to revenue of

$573 million

for the first quarter of 2015. Net income for the first quarter was

$7 million

$6 million

in the same quarter last year. Adjusted net income per share* for the first quarter of 2016 was

, up from

a year ago. Adjusted EBITDA* for the first quarter of 2016 was

$21 million

$20 million

a year ago.

"Our revenue gro wth slowed throughout the quarter, resulting in less overall revenue than expected," TrueBlue CEO Steve Cooper said. "The current environment, which combines slowing demand with rising labor and sourcing costs, has created some sensitivity in pricing. That makes it more difficult to pass these higher costs along to customers.”

The company estimates revenue in the range of $675 million to $690 million and adjusted net income per diluted share of $0.42 to $0.47 for the second quarter of 2016. Adjusted EBITDA is expected to be in the range of $33 million to $36 million for the second quarter.

The company estimates revenue in the range of $2.8 billion to $2.9 billion and adjusted net income per diluted share of $2.10 to $2.35 for the full year of 2016. Adjusted EBITDA is expected to be in the range of $158 million to $172 million for the full year of 2016.

“Our outlook for revenue growth has been impacted by mixed trends,” Cooper said. “We have seen growth among our small- and medium-sized customers, and we are pleased with the results we are seeing in construction. However, we have experienced a slowing with our largest customers, and manufacturing and related industries remain sluggish.”

Management will discuss first quarter 2016 results on a conference call at 2 p.m. PT (5 p.m. ET), today, Wednesday, April 20. The conference call can be accessed on TrueBlue’s web site:

www.trueblue.com

*The definitions of Adjusted EPS and Adjusted EBITDA have been modified to add back Work Opportunity Tax Credit third party processing fees and adjust the effective income tax rate to the expected, ongoing rate of 32 percent. These modifications were introduced in the fourth quarter of 2015 and have been used thereafter. Prior year amounts for the first quarter of 2015 have been stated on a comparable basis. See the financial statements accompanying the release and the company’s website for more information on non-GAAP terms.

About TrueBlue:

TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions including staffing, large-volume on-site workforce management, and recruitment process outsourcing to fill full-time positions. Based in Tacoma, Wash

, TrueBlue serves clients globally and connects as many as 840,000 people to work each year in a wide variety of industries. Learn more at

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Examples of such factors can be found in our reports filed with the SEC, including the information under the heading ‘Risk Factors’ in our Annual Report on Form 10-K for the fiscal year ended Dec. 25, 2015. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Contacts:

Derrek Gafford, EVP & CFO

253-680-8214

TRUEBLUE, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

13 Weeks Ended

March 25, 2016

March 27, 2015

Revenue from services

645,980

573,315

Cost of services

495,468

443,479

Gross profit

150,512

129,836

Selling, general and administrative expenses

130,624

111,593

Depreciation and amortization

11,289

10,520

Income from operations

Interest and other expense, net

(1,019

Income before tax expense

Income tax expense

Net income per common share:

Diluted

Weighted average shares outstanding:

41,502

41,031

41,798

41,362

SEGMENT DATA

(Unaudited, in thousands)

Staffing Services

602,453

549,712

Managed Services

43,527

23,603

Total Company

Adjusted EBITDA (1)

19,682

24,559

28,512

28,037

Corporate unallocated

(7,087

(8,308

21,425

19,729

Work Opportunity Tax Credit processing fees (2)

Non-recurring acquisition and integration costs (3)

(1,060

(1,156

19,888

18,243

Depreciation and amortization

Interest expense, net

EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to acquisition and integration costs, as well as Work Opportunity Tax Credit third-party processing fees. EBITDA and Adjusted EBITDA are key measures used by management to evaluate performance. EBITDA and Adjusted EBITDA should not be considered measures of financial performance in isolation or as an alternative to Income from operations in the Consolidated Statements of Operations in accordance with GAAP, and may not be comparable to similarly titled measures of other companies.

These third-party processing fees are associated with generating the Work Opportunity Tax Credits, which are designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates.

For the quarter ended March 25, 2016, Non-recurring acquisition and integration costs related to the acquisition of the recruitment process outsourcing business of Aon Hewitt, which was completed on January 4, 2016. For the quarter ended March 27, 2015, these costs related to the acquisition of Seaton, which was completed on June 30, 2014.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

December 25, 2015

Assets

Current assets:

Cash and cash equivalents

21,888

29,781

Accounts receivable, net

325,297

461,476

Other current assets

38,508

51,708

Total current assets

385,693

542,965

Property and equipment, net

58,561

57,530

Restricted cash and investments

202,684

188,412

Goodwill and intangible assets, net

475,023

422,354

Other assets, net

50,682

48,181

Total assets

1,172,643

1,259,442

Liabilities and shareholders' equity

Current liabilities

202,454

227,976

Long-term debt, less current portion

163,653

243,397

Other long-term liabilities

259,920

252,496

Total liabilities

626,027

723,869

Shareholders' equity

546,616

535,573

Total liabilities and shareholders' equity

CONSOLIDATED STATEMENTS OF CASH FLOWS

Cash flows from operating activities:

Adjustments to reconcile net income to net cash from operating activities:

Provision for doubtful accounts

Stock-based compensation

Deferred income taxes

(1,083

Other operating activities

Changes in operating assets and liabilities, net of acquisitions:

147,067

67,411

Income tax receivable

14,742

(3,668

Accounts payable and other accrued expenses

(9,681

Accrued wages and benefits

(16,153

(3,999

Workers’ compensation claims reserve

Other liabilities

Net cash provided by operating activities

160,505

95,760

Cash flows from investing activities:

Capital expenditures

(3,876

(3,458

Acquisition of business

(72,000

Maturities of marketable securities

Change in restricted cash and cash equivalents

(6,570

(8,215

Purchases of restricted investments

(8,244

Maturities of restricted investments

Net cash used in investing activities

(87,526

(5,885

Cash flows from financing activities:

Net proceeds from stock option exercises and employee stock purchase plans

Common stock repurchases for taxes upon vesting of restricted stock

(2,229

(3,026

Net change in revolving credit facility

(78,988

(88,000

Payments on debt

Net cash used in financing activities

(81,325

(90,316

Effect of exchange rates on cash

(1,446

Net change in cash and cash equivalents

(7,893

(1,887

CASH AND CASH EQUIVALENTS,

beginning of period

19,666

CASH AND CASH EQUIVALENTS, end of period

17,779

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO ADJUSTED NET INCOME PER DILUTED SHARE

(Unaudited, in thousands, except for per share data)

GAAP net income

Non-recurring acquisition and integration costs (2)

Work Opportunity Tax Credit processing fees (3)

GAAP net income per diluted share

Non-recurring acquisition and integration costs, net of tax (2)

Work Opportunity Tax Credit processing fees, net of tax (3)

Amortization of intangible assets of acquired businesses, net of tax (4)

Adjust income taxes to a normalized effective tax rate (5)

Adjusted net income per diluted share (6)

Diluted weighted average shares outstanding

Amortization of intangible assets of acquired businesses, as well as accretion expense related to acquisition earn-out.

Adjusts the effective income tax rate to the expected, ongoing rate of 32% including annual Work Opportunity Tax Credit benefits and excluding any discreet or unique items.

Adjusted net income per diluted share is a non-GAAP financial measure which excludes from net income on a per diluted share basis non-recurring costs related to acquisition and integration costs, net of tax, amortization of intangibles of acquired businesses, net of tax, accretion expense related to acquisition earn-out, net of tax, Work Opportunity Tax Credit third-party processing fees, net of tax, and adjusts income taxes to the expected ongoing effective rate. Adjusted net income per diluted share is a key measure used by management to evaluate performance and communicate comparable results. Adjusted net income per diluted share should not be considered a measure of financial performance in isolation or as an alternative to net income per diluted share in the Consolidated Statements of Operations in accordance with GAAP, and may not be comparable to similarly titled measures of other companies.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

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