Trueblue, Inc. · NYSE:TBI

Trueblue — Q2 2019 Earnings Presentation

17 slides from Trueblue's earnings presentation, July 2019

  1. Slide 1: Q2 2019 Earnings

    Q2 2019 Earnings July 2019 www.TrueBlue.com

  2. Slide 2: Forward-looking statements

    Forward-looking statements

  3. Slide 3: Q2 2019 summary

    Q2 2019 summary Slower pace of demand  Total revenue -4% v. flat in Q1 2019  Organic revenue1 -6% v. -3% in Q1 2019  Slower demand attributable to lower volumes within the businesses of clients EPS exceeded high-end of company outlook  Cost management generated EPS growth  EPS +11% and adjusted

  4. Slide 4: Financial summary

    Financial summary Amounts in millions, except per share data Q2 2019 % Change Revenue $589 -4% (-6% organic1) Net Income $19.4 9% Net Income Per Diluted Share $0.49 11% Adjusted Net Income1 $25.1 9% Adj. Net Income Per Diluted Share $0.64 12% Adjusted EBITDA1 $33.5 Flat Adjusted EBITDA Margin 5.7% 3

  5. Slide 5: Gross margin and SG&A bridges

    Gross margin and SG&A bridges Gross Margin Amounts in millions SG&A

  6. Slide 6: Q2 2019 results by segment

    Q2 2019 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $369 $154 $66 % Growth -2% -14% 13% (-4% organic) Segment Profit1 $22 $4 $11 % Growth -6% -12% -1% % Margin 5.9% 2.7% 17.1% Change -20 bps 10 bps -250 bps Notes:  Revenue was -2% v. 3% last quarter  Rev

  7. Slide 7: Leading our business into a digital future

    Leading our business into a digital future TM JobStack Industry leading mobile app that connects our Industry leading platform for sourcing, screening associates with jobs and simplifies client ordering and delivering a permanent workforce Before Affinix After  86% worker adoption  30% applicant 

  8. Slide 8: 5-Year anniversary of Seaton and smooth TMP integration

    5-Year anniversary of Seaton and smooth TMP integration Seaton Acquisition and the Increasing Importance of RPO PeopleScout % of TrueBlue TTM Segment Profit  Q2-19 marks the 5-year anniversary of our 100% acquisition of Seaton1 75%  The acquisition diversified the company’s 50% 30% human capital p

  9. Slide 9: Strong balance sheet and return of capital

    Strong balance sheet and return of capital Total Debt Debt to Total Capital1 Amounts in millions Net Debt Cash $138 $119 $35 $29 $80 21% 18% $103 $90 $47 $25 12% $33 $23 4% 2016 2017 2018 Q2 2019 2016 2017 2018 Q2 2019 Liquidity Share Repurchase % of Free Cash Flow2 Amounts in millions Borrowing Ava

  10. Slide 10: Outlook

    Outlook | trueblue’ THE PEOPLE COMPANY

  11. Slide 11: Q3 outlook

    Q3 outlook Amounts in millions, except per share data Revenue Notes • TMP acquisition contributed approximately two percentage points of growth in prior quarters Total TrueBlue1 $613 to $638 • Reflects July PeopleReady Trends -10% to -6% growth • Previously disclosed client headwinds impacting Q3: R

  12. Slide 12: Select 2019 outlook information

    Select 2019 outlook information Amounts in millions PeopleScout Clients 1 Retail Client (PeopleManagement) -$66 -$26 Revenue Headwinds Amazon (PeopleManagement) -18 -5 PlaneTechs (PeopleManagement) -$15 -$16 -16 -12 -3 -6 -$9 -6 -24 -4 -8 -8 -6 -6 -8 Q1-19 (Actual) Q2-19 (Actual) Q3-19 Q4-19 FY 2019

  13. Slide 13: Appendix

    Appendix | trueblue’ THE PEOPLE COMPANY

  14. Slide 14: Non-GAAP financial measures and non-GAAP reconciliations

    NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non- GAAP financial measures is used to enhance the understanding of certain aspects of our

  15. Slide 15: Reconciliation of U.S. GAAP net income to adjusted net income

    1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE (Unaudited) Q2 2019 Q2 2018 Q3 2019 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Jun 30, 2019 Jul 1, 2018 Sep 29, 2019 Net income $ 19,406 $

  16. Slide 16: Reconciliation of revenue to organic revenue and free cash flows

    3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Total company PeopleScout Q2 2019 Q2 2018 Q2 2019 Q2 2018 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands) Jun 30, 2019 Jul 1, 2018 Jun 30, 2019 Jul 1, 2018 Revenue from services $ 588,594 $ 614,301 $ 65,

  17. Slide 17: Footnotes

    Footnotes: 1. Gain on the divestiture of our PlaneTechs business sold mid-March 2018. 2. Amortization of intangible assets of acquired businesses. 3. Acquisition/integration costs for the acquisition of TMP Holding LTD ("TMP") completed on June 12, 2018. Organic revenue excludes the first 12 months

TrueBlue — Q2 2019 Earnings Presentation on 6ix