Trueblue, Inc. · NYSE:TBI
Trueblue — Q2 2017 Earnings Presentation
14 slides from Trueblue's earnings presentation, Jul 31, 2017
Slide 1: www.TrueBlue.com
www.TrueBlue.com
Slide 2: Forward-Looking Statements
www.TrueBlue.com Forward-Looking Statements
Slide 3: Q2 2017 Summary
www.TrueBlue.com Q2 2017 Summary Revenue consistent with management expectation Total revenue decline of -9% or -5% excluding Amazon1 o PeopleReady -9% o PeopleManagement -12%, or +2% excluding Amazon o PeopleScout -1% Disciplined pricing and expense management Gross margin up +20 bps Operatin
Slide 4: Financial Summary
www.TrueBlue.com Financial Summary Revenue -9% largely driven by Amazon, -5% excluding Amazon o Stable intra-quarter trends Adjusted EBITDA and margin down from negative operating leverage o Q2 2017 was the first quarter without an Adjusted EBITDA headwind from Amazon o No Amazon headwind expect
Slide 5: Gross Margin and SG&A Bridges
www.TrueBlue.com Gross Margin and SG&A Bridges SG&A Amounts in millions Gross Margin 25.3% 25.5% 0.3% 0.5% Q2 2016 PeopleScout Staffing Q2 2017 $136 $125 $2 $5 $4 Q2 2016 EBITDA Addbacks Amazon Core Business Ex- Amazon Q2 2017 1 1 Staffing includes our PeopleReady and PeopleManagement segments. 2 Pr
Slide 6: Results by Segment
www.TrueBlue.com Note: Figures may not sum to consolidated totals due to rounding. 1 Since the business was acquired in June 2014. Results by Segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $371 $193 $47 % Growth -9% -12% +2% ex-Amazon -1% Adj. EBITDA $19 $6 $10 % Margin
Slide 7: Lower Debt and Ample Liquidity
www.TrueBlue.com $216 $103 $82 $30 $35 $29 $246 $138 $111 2015 2016 Q2 2017 Net Debt Cash $77 $136 $128 $30 $35 $29 $107 $171 $157 2015 2016 Q2 2017 Borrowing Availability Cash Lower Debt and Ample Liquidity 31% 21% 17% 2015 2016 Q2 2017 Total Debt Liquidity Debt to Total Capital1 Amounts in million
Slide 8: Segment Strategy Highlights
www.TrueBlue.com Segment Strategy Highlights Rollout of mobile strategy continues (JobStack) o Worker app is being rolled out across branch network o Promising trends on worker app adoption o Recently launched new client app Productivity solutions enhance future growth prospects o Compelling val
Slide 9: www.TrueBlue.com
www.TrueBlue.com
Slide 10: Q3 2017 Outlook
www.TrueBlue.com Q3 2017 Outlook Amounts in millions, except per share data Outlook Comments Revenue Growth Ranges Total Revenue PeopleReady PeopleManagement PeopleScout $645 to $660 -7% to -5% -8% to -6% -9% to -7% 5% to 8% • Total revenue decline was -9% in Q2 2017 • Ex-Amazon growth of -4% to -2%
Slide 11: www.TrueBlue.com
www.TrueBlue.com
Slide 12: Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income
www.TrueBlue.com Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income and Adjusted Net Income Per Share * Totals may not sum due to rounding. 1. Acquisition and integration costs relate to the acquisition of the recruitment process outsourcing business of Aon Hewitt, which was comple
Slide 13: Reconciliation of U.S. GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA
www.TrueBlue.com Reconciliation of U.S. GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA Note : See prior slide for footnotes (1) and (2). 7. EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes from Net income (loss) interest, taxes, depreciation and amortization. Adjuste
Slide 14: Reconciliation of Segment EBITDA to Adjusted EBITDA
www.TrueBlue.com Reconciliation of Segment EBITDA to Adjusted EBITDA 13 Weeks Ended Jul 2, 2017 Jun 24, 2016 PeopleReady PeopleManagement PeopleScout PeopleReady PeopleManagement PeopleScout Segment EBITDA (1) $ 19,154 $ 6,286 $ 10,129 $ 29,543 $ (80,091 ) $ (3,841 ) Goodwill and intangible asset im