Slide 1: Q2 2022 Earnings
Q2 2022 Earnings July 2022
Slide 2: Forward-looking statements and non-GAAP financial measures
www.TrueBlue.c om 2 Forward-looking statements and non-GAAP financial measures This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, and expected growth from
Slide 3: Q2 2022 Overview
www.TrueBlue.c om 3 Q2 2022 Overview Total revenue +10% ▪ PeopleScout demand remained strong due to a high number of job openings ▪ PeopleReady demand tapered due to economic uncertainty ▪ PeopleManagement demand held steady Net income was $24 million v. $16 million in Q2 2021 ▪ Net income margin +1
Slide 4: Financial summary
www.TrueBlue.c om 4 Financial summary 1 Refer to the appendix to this presentation for a definition and full reconciliation of non-GAAP financial measures to GAAP financial results. Amounts in millions, except per share data Q2 2022 Q2 2021 Change Revenue $569 $516 10 % Net income $24.0 $15.9 51 % N
Slide 5: Gross margin and SG&A bridges
www.TrueBlue.c om 5 Gross margin and SG&A bridges Amounts in millions Gr os s m ar gi n SG &A $111 $3 $8 $122 Q2 2021 Core business Q2 2022 26.4% 1.0% 0.4% 27.8% Q2 2021 Staffing RPO Q2 2022 Adjusted EBITDA exclusions1 1 $3 million represents the year-over-year change in Adjusted EBITDA exclusions i
Slide 6: Q2 2022 Results by segment
www.TrueBlue.c om 6 Q2 2022 Results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $318 $162 $89 % Change 6% 6% 39% Segment profit1 $20 $4 $21 % Change 10% 31% 90% % Margin 6.4% 2.6% 23.0% Change +20 bps +50 bps +610 bps Notes: ■ Revenue +6% • April +11%, May +7%, an
Slide 7: Strategy highlights
www.TrueBlue.c om 7 Strategy highlights Leverage technology and industry leading position to grow market share and enhance efficiency ▪ Focus sales and marketing efforts to capitalize on industry trend towards outsourcing ▪ Leverage our strong brand; independently ranked as a market leader ▪ Expand
Slide 8: PeopleReady: Leading our industry with transformative digital strategies
www.TrueBlue.c om 8 PeopleReady Leading our industry with transformative digital strategies Industry leading mobile app that connects our associates with jobs and simplifies ordering Testing centralized and virtual service centers to manage recruiting, onboarding and delivery JobStackTM • Increasing
Slide 9: Balance sheet remains strong
www.TrueBlue.c om 9 Balance sheet remains strong Amounts in millions Note: Figures may not sum to consolidated totals due to rounding. Balances as of fiscal period end. 1 Total Debt to Capital calculated as total debt divided by the sum of total debt plus shareholders’ equity. Liquidity Amounts in m
Slide 10: Outlook
Outlook trueblue THE PEOPLE COMPANY?
Slide 11: Select outlook information for Q3 2022
www.TrueBlue.c om 11 Select outlook information for Q3 2022 Item Q3 2022 Commentary Revenue We are not providing customary revenue guidance. However, excluding 2020, our prior five-year historical average for sequential revenue growth from Q2 to Q3 was roughly 9%. June revenue trends at PeopleReady
Slide 12: Select outlook information for FY 2022
www.TrueBlue.c om 12 Select outlook information for FY 2022 1 Refer to the appendix to this presentation and “Financial Information” in the investors section of our website at www.trueblue.com for a definition of non-GAAP financial measures. 2 Includes planned investments in software as a service (S
Slide 13: Appendix
Appendix trueblue THE PEOPLE COMPANY?
Slide 14: Non-GAAP financial measures and non-GAAP reconciliations
www.TrueBlue.c om 14 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 ce
Slide 15: Reconciliation of U.S. GAAP net income to adjusted net income
www.TrueBlue.c om 15 1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) Refer to the last slide of the appendix for footnotes. 13 weeks ended (in thousands, except for per share data) Jun 26, 2022 Jun 27, 2021 Net income $ 24,013 $
Slide 16: Reconciliation of U.S. GAAP net income to EBITDA and adjusted EBITDA
www.TrueBlue.c om 16 Refer to the last slide of the appendix for footnotes. 2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Jun 26, 2022 Jun 27, 2021 Net income $ 24,013 $ 15,884 Income tax expense 5,129 3,783 Interest expense and oth
Slide 17: Reconciliation of U.S. GAAP SG&A expense to adjusted SG&A expense
www.TrueBlue.c om 17 Refer to the last slide of the appendix for footnotes. 3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE (Unaudited) 13 weeks ended (in thousands) Jun 26, 2022 Jun 27, 2021 Selling, general and administrative expense $ 122,034 $
Slide 18: Footnotes
www.TrueBlue.c om 18 Footnotes: (1) Amortization of software as a service assets is reported in selling, general and administrative expense. (2) Accelerated depreciation for the existing systems being replaced by the new PeopleReady technology platform. (3) Implementation costs associated with upgra