Slide 1: Q3 2024 Earnings
Q3 2024 EARNINGS trueblue THE PEOPLE COMPANY®
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This presentation contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in d
Slide 3: Q3 2024 Overview
Q3 2024 Overview Total revenue down 19% ▪ Uncertainty and caution continued to weigh on customers, driving reduced volumes with the exception of commercial driving services which delivered double-digit growth Net loss was $8 million ▪ Revenue decline was partially offset by disciplined cost manageme
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2024 Q3 2023 Change Revenue $382 $473 -19% Net loss -$7.6 $0.0 NM Net loss per diluted share -$0.26 $0.00 NM Net loss margin -2.0% —% -2 pp Adjusted net income (loss)1 -$3.3 $4.9 NM Adj. net income (loss) per diluted share -$0.11 $0.16
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 26.2% 1.4% 26.2% Gross margin -0.8% -0.6% Q3 2023 Workers’ Mix Bill / Pay Q3 2024 Compensation spread Amounts in millions $121 $100 SG&A -$20 -$1 Q3 2023 Core business Adjusted EBITDA Q3 2024 exclusions1 1 Represents the year-over-year change in Adjusted EBITDA exclusio
Slide 6: Q3 2024 Results by segment
Q3 2024 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $215 $37 $131 % Change -24% -31% -5% Segment profit1 $3 $3 $3 % Change -68% -59% +54% % Margin 1.4% 6.9% 2.5% Change -200 bps -490 bps +90 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • Softness across mos
Slide 7: Strong balance sheet with zero debt and ample liquidity
Strong balance sheet with zero debt and ample liquidity Amounts in millions Liquidity Share repurchases 1 2 Borrowing availability Cash Share repurchases Buyback ratio $365 $344 6% 5% 4% $50 $72 2% $61 $148 $148 $294 $293 $34 $15 $62 $21 $17 $133 $86 2021 2022 2023 Q3 2024 2021 2022 2023 YTD Q3 2024
Slide 8: Outlook
Outlook
Slide 9: Select outlook information
Select outlook information Item Q4 2024 Commentary Assumes current market conditions continue into Q4 and includes: $377M to $402M Revenue • -6 percentage points from the extra 14th week in our fiscal fourth quarter for 2023 -24% to -18% v. prior year • -1 percentage point from Canada sale -100 to -
Slide 10: Decisive cost actions to deliver efficiencies and enhance long-term profitability
Decisive cost actions to deliver efficiencies and enhance long-term profitability Amounts in millions Simplified organizational structure 1 SG&A Adjusted SG&A $134 $130 $127 $124 Enhanced automation $98 - $102 $94 - $98 Greater efficiencies Q4 2022 Q4 2023 Q4 2024 Outlook Increased scalability 1 Ref
Slide 11: Appendix
Appendix
Slide 12: 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
Slide 13: Reconciliation of U.S. GAAP net loss to adjusted net income (loss)
1. RECONCILIATION OF U.S. GAAP NET LOSS TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE (Unaudited) 13 weeks ended (in thousands, except for per share data) Sep 29, 2024 Sep 24, 2023 Net loss $ (7,635) $ (10) Gain on divestiture 29 — Amortization of intangible assets 6
Slide 14: Reconciliation of U.S. GAAP net loss to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Sep 29, 2024 Sep 24, 2023 Net loss $ (7,635) $ (10) Income tax expense (benefit) 1,253 (2,326) Interest and other (income) expense, net (521) (390) Depreciation and amortization 6,967 6,18
Slide 15: Reconciliation of U.S. GAAP SG&A expense to adjusted SG&A expense
3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE (Unaudited) Q3 2024 Q3 2023 Q4 2024 Outlook 13 weeks ended (in thousands) Sep 29, 2024 Sep 24, 2023 Dec 29, 2024 Selling, general and administrative expense $ 99,973 $ 120,715 $ 97,900 — $ 101,900 Thi
Slide 16: Footnotes
Footnotes: 1. Costs associated with upgrading legacy PeopleReady technology. 2. Other adjustments for the 13 weeks ended September 29, 2024 and September 24, 2023 primarily include workforce reduction costs of $2.8 million ($0.2 million in cost of services and $2.6 million in selling, general and ad