Slide 1: Q2 2015 Earnings Results
Q2 2015 Earnings Results July 22, 2015
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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 that reflect management’s current outlook for future periods, including statements regarding future financi
Slide 3: Q2 2015 Highlights
Q2 2015 HIGHLIGHTS • Record Q2 Revenue and Adjusted EBITDA 1 results • Adjusted EBITDA $3M above expectation • Impressive Adjusted EBITDA margin expansion Driven by cost discipline and operating leverage Consolidated expansion = 30 bps Legacy TrueBlue expansion = 80 bps • End of Q2 2015 marks
Slide 4: Highlights
Q2 2015 HIGHLIGHTS Revenue Adjusted EBITDA Adjusted EBITDA Margin Adjusted Earnings Per Share 1 $ 628 $ 37 5.9% $ 0.45 Q2 2015 CHANGE 4 1 See Appendix for the definition of this non-GAAP financial term. 2 Adjusted Earnings Per Share is adjusted to exclude this tax credit benefit. +38% +46% +30 bps +
Slide 5: Gross Margin and Adjusted EBITDA Margin Bridges
Q2 2015 GROSS MARGIN AND ADJUSTED EBITDA MARGIN BRIDGES GROSS MARGIN ADJUSTED EBITDA MARGIN 5 Q2 2015 Earnings Results | July 22, 2015 26.4% 24.2% 2.5% 0.3% Q2 2014 Seaton Impact Legacy TrueBlue Improvement Q2 2015 5.6% 5.9% 0.5% 0.8% Q2 2014 Seaton Impact Legacy TrueBlue Improvement Q2 2015
Slide 6: SG&A Bridge
Q2 2015 SG&A BRIDGE 6 Q2 2015 Earnings Results | July 22, 2015 Amounts in millions. Note: Figures do not sum due to rounding. $97 $118 $22 $1 $1 Q2 2014 Seaton Impact Integration Costs Legacy TrueBlue Improvement Q2 2015
Slide 7: Highlights – Legacy TrueBlue
Q2 2015 HIGHLIGHTS – LEGACY TRUEBLUE Amounts in millions. • Revenue growth of 3% excluding green energy headwind Green energy headwind anniversary met in Q2 2015 • Adjusted EBITDA exceeded expectation • Strong Adjusted EBITDA expansion Driven by cost discipline and operating leverage Revenue Adj
Slide 8: Highlights – Seaton
Amounts in millions. • Solid growth in on-premise staffing • Strong new RPO customer pipeline • Adjusted EBITDA exceeded expectation • Integration complete Revenue Adjusted EBITDA Adjusted EBITDA Margin Q2 2015 8 Q2 2015 Earnings Results | July 22, 2015 Seaton was acquired on June 30, 2014. Therefor
Slide 9: Seaton Acquisition Delivers Strong Across-the-Board Results
SEATON ACQUISTION DELIVERS STRONG ACROSS-THE-BOARD RESULTS 9 Amounts in millions. Target1 Actual $ 730 - 750 $ 738 $ 35 - 39 $ 37 Powerful Earnings Accretion Revenue (TTM) Adjusted EBITDA (TTM) 1 Forward 12-month target set at the time of acquisition (June 30, 2014). 2 Excludes $13.4M of incremental
Slide 10: Debt and Liquidity Highlights
Total Debt Liquidity Debt to Total Capital Amounts in millions. Amounts in millions. Q2 2015 Earnings Results | July 22, 2015 10 1Total debt less cash and marketable securities. Note: Balances as of fiscal period end. Figures on this page may not sum due to rounding. -$130 -$105 $180 $81 No Debt $32
Slide 11: Expectations
Expectations TRUEBLUF
Slide 12: Reporting Transition
5.7% 5.1% Legacy TrueBlue Legacy Seaton 6.6% 14.0% St ffi g Services Managed Services $476 $123 Legacy TrueBlue Legacy Seaton REPORTING TRANSITION Legacy Reporting Comp ositio n • Labor Ready • CLP • Spartan • Centerline • PlaneTechs • Staff Management | SMX (on-premise staffing and managed services
Slide 13: Q3 2015 Expectations
Expectation Commentary Total Revenue 4% to 6% • All organic • Acceleration from 1% organic growth in Q1 ’15 Staffing Services Revenue 4% to 6% • Mid-point expectation of positive 5% Managed Services Revenue 5% to 5% • Smaller Managed Services customer population = wider range relative to Staffing Se
Slide 14: EBITDA and Adjusted EBITDA non-GAAP definitions
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisi