Slide 1: Q3 2014 Earnings Results
Q3 2014 Earnings Results Oct. 23, 2014 TRUEBLUE
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: Q3 2014 Highlights
Q3 2014 HIGHLIGHTS • Total revenue growth of 40% - Seaton acquisition performing as expected - Organic revenue growth of 2% - Slowdown in energy sector - Excluding energy, organic revenue growth of 5% • Adjusted EBITDA 1 growth of 25% - Continued focus on expanding EBITDA margin through technology a
Slide 4: Q3 2014 Highlights
Q3 2014 HIGHLIGHTS Q3 2014 Q3 2013 Change Revenue $ 633 $ 451 40% Gross Profit $ 160 $ 124 29% % of Revenue 25.2% 27.4% SG&A Expense $ 120 $ 91 33% % of Revenue 19.0% 20.1% EBITDA 1 $ 39 $ 33 20% % of Revenue 6.2% 7.3% Adjusted EBITDA 1 $ 42 $ 33 25% % of Revenue 6.6% 7.4% Adjusted Earnings per Shar
Slide 5: Organic Revenue Trends
ORGANIC REVENUE TRENDS 4% 3% 2% 5% 4% 5% 0% 1% 2% 3% 4% 5% 6% Q1 Q2 Q3 1 All calculations based on comparison to same period a year ago. Quarterly 2014 Organic Revenue Growth Trends 1 Q3 2014 Earnings Results | Oct. 23, 2014 5 Organic Revenue Growth Organic Revenue Growth Excluding Energy Sector
Slide 6: Gross Margin Bridge
GROSS MARGIN BRIDGE 24% 25% 26% 27% 28% Q3 2013 Seaton Acquisition TWC Acquisition Pricing & Other Q3 2014 25.2% (2.2%) +0.3% 27.4% (0.3%) 1 1 Q3 2014 Earnings Results | Oct. 23, 2014 6 1 These businesses carry lower gross margin than the Legacy TrueBlue business resulting in a lower blended company
Slide 7: SG&A Bridge
SG&A BRIDGE $0 $20 $40 $60 $80 $100 $120 $140 Q3 2013 Acquired Operations - Seaton Acquired Operations-TWC Non-Recurring Acquisition Costs Variable and Other Costs Q3 2014 $91M $120M $4M $2M $20M $3M 1 2 3 1 Operating expenses relating to acquired Seaton operations. Seaton was acquired on the first
Slide 8: Q3 2014 Adjusted EBITDA Margin Bridge
Q3 2014 ADJUSTED EBITDA MARGIN BRIDGE 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% Q3 2013 Adjusted EBITDA Margin Seasonal Impact from Seaton Acquisition Impact from TWC Acquisition Q3 2014 Adjusted EBITDA Margin 6.6% (0.6%) (0.2%) 7.4% 1 1 Q3 2014 Earnings Results | Oct. 23, 2014 8 2 2 2 Adjusted EBITDA marg
Slide 9: Expectations
Expectations TRUEBLUE
Slide 10: Q4 2014 Expectations
Amounts in millions except per share data. Certain amounts may not sum or recalculate due to rounding. Q4 2014 EXPECTATIONS Legacy TrueBlue Outsourcing Solutions (Seaton) Consolidated Total Revenue $ 445 - 455 $ 247 - 253 $ 695 - 705 Total growth FLAT N/A 56% Growth excluding energy 4% N/A 60% Adjus
Slide 11: 2015 Outlook
2015 OUTLOOK Amounts in millions except per share data. Certain amounts may not sum or recalculate due to rounding. Q3 2014 Earnings Results | Oct. 23, 2014 11 1 EBITDA, Adjusted EBITDA, and Adjusted Earnings per Share are non-GAAP terms. Adjusted EBITDA and Adjusted EPS excludes $2 million of non-r
Slide 12: 2015 Adjusted EBITDA Margin Bridge
4.0% 4.5% 5.0% 5.5% 6.0% 2014 Forecasted Adjusted EBITDA Margin Seasonal Impact from Seaton Acquisition 2014 Forecasted Pro Forma Adjusted EBITDA Margin 2015 Operating Leverage 2015 Forecasted Adjusted EBITDA Margin 5.6% 5.2% (0.2%) 5.4% +0.4% 2015 ADJUSTED EBITDA MARGIN BRIDGE 2 The timing of the a
Slide 13: Net Income to EBITDA and Adjusted EBITDA Reconciliation
NET INCOME TO EBITDA AND ADJUSTED EBITDA RECONCILIATION Q3 2014 Net Income 20.9 $ Q3 2013 19.0 $ Depreciation & Amortization 9.7 $ EBITDA 39.3 $ Non-recurring Acquisition Costs 2.3 $ Adjusted EBITDA 41.6 $ 4.8 $ 32.8 $ 0.6 $ 33.4 $ Income Tax Expense 8.2 $ 9.5 $ Interest Expense (Income), net 0.4 $
Slide 14: Diluted Net Income per Share to Adjusted Net Income per Share Reconciliation
DILUTED NET INCOME PER SHARE TO ADJUSTED NET INCOME PER SHARE RECONCILIATION Q3 2014 Diluted Net Income per Share 0.51 $ Q3 2013 $ Non-recurring Acquisition Costs 0.03 $ $ Adjusted Net Income per Share 0.54 $ $ 0.47 0.01 0.48 Q3 2014 Earnings Results | Oct. 23, 2014 14 3 2 1 The terms “net income” a
Slide 15: Reconciliation of Q4 2014 Forecasted Operating Income to EBITDA
1 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 acqui