Trueblue, Inc. · NYSE:TBI
Trueblue — Labor Ready — Investor Presentation (September 2003)
34 slides from Trueblue's investor presentation, Sep 17, 2003
Slide 1: Labor Ready 2003 Analyst Presentation
LABOR READY Dependable Temporary Labor. 2003 ANALYST PRESENTATION September 17, 2003 New York = We Put People to Worle =e
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Cautionary Note about Forward-Looking Statements Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual
Slide 3: Introduction to Directors
INTRODUCTION TO DIRECTORS = Robert Sullivan Chairman = Mark Beatty = Tom McChesney =" Gates McKibbin = Joe Sambataro = Carl Schafer = Bill Steele LABOR READY
Slide 4: Management Team
MANAGEMENT TEAM = Tim Adams General Counsel = Bob Breen Director, Strategic Planning & Analysis = Rick Christmas cio = Steve Cooper CFO = John Hopkins Regional VP, Operations/West = Gary North Regional VP, Operations/East & U.K. = Tom Stonich VP Human Resources LABOR READY
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Slide 6: Labor Ready: 790 offices in U.S., Canada and U.K.
LABOR READY Dependable Temporary Labor. Tuscon . Wage 7 Labor Ready has 790 offices in the U.S., Canada and U_K.
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Slide 8: Recent reports on the U.S. economy
Recent reports on the U.S. economy have been optim:
Slide 9: 2000-2003 Operating Income Growth
2000-2003 OPERATING INCOME GROWTH in gm 1,000 980 960 940 920 900 880 860 840 820 800 No. of Branches Annual Revenue and Operating Income ' 2000 816 2001 756 2002 748 2003E 790 in $M 30 25 20
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Slide 11: Labor Ready's Value Proposition
LABOR READY’S VALUE PROPOSITION Customer: = Flexibility = Eliminates workers’ compensation and payroll tax exposure = Reduces fixed costs = Quick fill of employment needs = Dependable, temporary labor
Slide 12: Company Goals & Strategies
COMPANY GOALS & STRATEGIES = Improve branch profitability = Expand in smaller markets in U.S. = Expand in U.K. LABOR READY
Slide 13: Branch Profitability
BRANCH PROFITABILITY = Increase same-store sales * Current branches at 50% of capacity = Branch Manager Compensation Program = Improve customer service = Control costs Deliver 30 % gross margins
Slide 14: Smaller Markets Expansion
SMALLER MARKETS EXPANSION = Opened 25 new branches in U.S. and Canada in 2003 * Close to 300 markets available = Smaller market branch model * Smaller footprint * Different market criteria * Zero impact on existing branches
Slide 15: U.K. Expansion
U.K. EXPANSION = Opened 15 locations in 2003 * Estimated 100 locations available * Currently operating 46 locations =" Expanded geographic reach LABOR READY
Slide 16: Financial Metrics & Results
FINANCIAL METRICS & RESULTS = Sales Trends = Smaller Market Branch Update a U.K. Update = Leverage in Current Operations = Current Year Estimates
Slide 17: Sales Growth Trends
SALES GROWTH TRENDS Year over Year Sales Growth A S O N DJ F MAM J JF A 102 03 Dec, 2002 and Jan, 2003 growth rates shown before year end cut off adjustments.
Slide 18: Same Store Growth / New Store Growth
Same Store Growth New Store Growth anal I ASONDIJIFMAMIIA ASONDIFMAMIJIA
Slide 19: Regional Results
REGIONAL RESULTS Camas 36 Branches 3% of Sales YTD 10% Midwest 109 Branches 12% of Sales Northwest Mae 47 Branches TM% of Sales Northeast Dee) 168 Branches 18% of Sales YTD Flat Southwest 153 Branches 24% of Sales YTD (4%) Southeast © 146 Branches 21% of Sales United Kingdom South BORE s 46 Branches
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Slide 22: U.K. Financial Summary
U. K. FINANCIAL SUMMARY August 2003 YTD One Year and Older 15New YTDAII FY Offices Offices Offices 2003E FY 2002 Revenues $ 14,400 $ 800 $15,200 $30,600 $23,200 Branch Profit (Loss) $ 1,000 $(1,100) $ (100) $ - $ (600) in thousands LAB
Slide 23: Current Locations
Current Locations Ce Pert “Oundee ATLANTIC em OCEAN 25: Sunderland oe: I1E/Q]),pidtesbrough St. nidaait Py incom. SemborOUgh ‘ _Castienar ¢ vk black ; Rosconmen, Nave, Gatway ° a “Atha Cliath Tulpnere’ M85) Eris, IRELAND <Carow cinenge KEN, _Stonmel | wextord “Waterford “Tralee Corks,
Slide 24: Current and Planned Locations
Current e Planned Inverness, Locations Locations SCOTLAND a Peat oe @y Bear North See Glasgow’ Pee ATLANTIC Catasern a OCEAN my < @ ,Sundertand WO } io ae bike aNGDOr » I Douges, ‘estebar! -* y y Roscommon,” Navaggsi Unda P . P Gatway jl 3 ‘ very <Clonmel | Wexford cog Wetertord i Sense ® 08 Exetegy
Slide 25: Q-3 Average Weekly Sales Volumes
Q-3 AVG. WEEKLY SALES VOLUMES One Year and Older New
Slide 26: Key Operating Metrics
KEY OPERATING METRICS =" Gross margin trends =" SG&A reduction = Branch Maturation LABOR READY
Slide 27: Gross Margin Trends
GROSS MARGIN TRENDS Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 LABOR READY
Slide 28: Selling, General & Admin. Costs
SELLING, GENERAL & ADMIN. COSTS Trailing four quarters as a percentage of sales 28% 27% 26% 25% 24% 23% Q2 93 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 LABOR READY
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Slide 31: Branch Profit Potential
BRANCH PROFIT POTENTIAL Sensitivity analysis based on L L Revenue $1,100,000 $1,300,000 Gross Profit 330,000 390,000 Gross Profit Margin 30% 30% Branch Expenses 200,000 210,000 As a % of Revenue 18% 16% Operating Income $130,000 $180,000 Operating income Margin [2%] Ea]
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Slide 33: 2003 Earnings Estimates
2003 EARNINGS ESTIMATES 2003 2001 | 2002 | Forecast ( = Revenue $917M $863M $865-$875M = EPS $0.23 $0.28 $0.36-$0.39 ® Operating Income $14M $21M $28M a) Based on management guidance issued on September 15, 2003, LABOR READY
Slide 34: Searchable text section of graphics
Searchable text section of graphics shown above LABOR READY® Dependable Temporary Labor. 2003 ANALYST PRESENTATION September 17, 2003 New York We Put People to Work. SAFE HARBOR STATEMENT Cautionary Note about Forward-Looking Statements Certain statements made by us in this presentation that are not