Quote: "Our focus on revenue growth and disciplined cost containment continues to drive our performance, despite the difficult operating environment."- CEO Steve Cooper

Profile: The company formerly known as Labor Ready changed its name to TrueBlue Inc. in December, although it continues to operate Labor Ready as one of its three subsidiaries. (It also owns Tampa, Fla.-based Spartan Staffing and CLP Resources Inc. of Reno, Nev.). The Tacoma company now brands itself as "the leading provider of blue-collar staffing." Formed in 1985, it now has more than 900 branches across the United States, Canada, Puerto Rico and the United Kingdom. Last year's revenues were $1.39 billion, up 2.7 percent from 2006.

Financials: In its most-recent quarter, the company reported profits had fallen by almost a third, to $14.4 million or 33 cents a share. Revenue was up 4.6 percent for the period, mostly due to income from newly acquired subsidiaries. With the economy slowing, and minimum wages rising, TrueBlue warned that revenue and profits would continue to fall, with profits down around 18 cents or 20 cents a share in the current quarter.

Stock Price: Closed at $12.47 last Thursday. The 52-week range is $11.01 to $28.63. Trades on NYSE under "TBI."

Analyst opinions: "There are no investors interested in owning staffing stocks now," Stifel Nicolaus analyst Jim Janesky told the Associated Press. Matrix USA downgraded the stock from buy to hold on Jan. 31.

Things to consider: Temporary employment agencies are a leading indicator: When times are good, companies turn to them to fill staffing needs before hiring someone permanent. When times are bad, the temp is the first one to be let go. Given that, weak national employment numbers are spooking investors. On the flip side, since temporary services are a leading indicator, TrueBlue and its competitors will be in one of the first sectors to bounce back as the recession ends.

TrueBlue will take more hits on the cost side this year. Minimum wages increased in virtually all states and Canadian provinces on Jan. 1. That includes Washington, which went to $8.07 an hour. The federal minimum wage also is going up to $6.55 an hour on July 24. Management says it?s having a hard time passing those raises on because of "an increased level of price sensitivity with our customers associated with slower economic conditions."

Looking at the financials, TrueBlue's cost of services climbed about 5.7 percent in the fourth quarter of 2007. Sales, General & Administrative expense (SGA) also climbed, due in part to branch closure costs. TBI closed 74 under-performing outlets in 2007.