Trueblue, Inc. · NYSE:TBI
Trueblue — Investor Presentation (February 2010)
23 slides from Trueblue's investor presentation, Feb 22, 2010
Slide 1: 2010 Q1 Investor Presentation
Exhibit 99.1 2010 Q1 Investor Presentation
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: Company and Industry Overview
Company and Industry Overview
Slide 4: Investment Highlights
Investment Highlights Leader in blue-collar staffing Poised to benefit from economic recovery Attractive long-term industry growth prospects Strong operating leverage New growth platforms and diversification
Slide 5: The Leading Provider of Blue-Collar Staffing
The Leading Provider of Blue-Collar Staffing $1 Billion in Revenue across Five Blue-Collar Brands Logistics & Aviation Specialty General Labor Skilled Trades CDL Drivers Manufacturing Mechanics Branch Locations 627 52 59 1 15 Revenue $630 Million $80 Million $100 Million $180 Million $30 Million Mar
Slide 6: Blue-Collar Specialties
Blue-Collar Specialties General Labor Postions filled on-demand Numerous workers available Convenient community branches Logistics & Manufacturing Specialized skills for manufacturing & logistics Longer term assignments and temp to perm On-site management of employees Skilled Trades Skilled tradespe
Slide 7: Why Multiple Brands
Why Multiple Brands Access to a much larger staffing market than traditional general labor services Expertise in selected industries and skill sets which creates a significant competitive advantage vs. general staffing firms Unique recruiting model to attract the best employees for specific industry
Slide 8: Long History of Blue-Collar Staffing
Long History of Blue-Collar Staffing Acquires Spartan Acquires Opens hundreds Staffing PlaneTechs ‘08-’09 of new branches; recession Labor Ready grows Labor Ready in ‘01 Acquires closes ~200 Labor to ~150 branches, all 50 states, recession; CLP Acquires branches Ready primarily on Canada and UK clos
Slide 9: Temporary Staffing
Temporary Staffing $70 billion Staffing Industry Analysts 2009 estimate, rounded other Industrial/blue collar office IT finance healthcare TrueBlue™ | 2010 Q1 Investor Presentation 9
Slide 10: Industrial/Blue-Collar Staffing
Industrial/Blue-Collar Staffing other labor construction packers + trucking assemblers production other Industrial / healthcare blue collar finance IT office $18 billion Staffing Industry Analysts 2009 estimate, rounded TrueBlue™ | 2010 Q1 Investor Presentation 10
Slide 11: Temporary Staffing Is Cyclical
Temporary Staffing Is Cyclical 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% 90 91 92 93 94 95 96 97 98 99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 Source: Bureau of Labor Statistics year over year growth in help supply employees. Not seasonally adjusted. Yellow shaded areas represent offici
Slide 12: Historical Summary
Historical Summary in $M Annual Revenue and Net Income in $M 1,600 90 1,400 80 70 1,200 1,000 60 50 Revenue 800 Income 40 600 30 Net 400 20 200 10 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 No. of Branches 200 316 486 687 816 756 748 779 815 887 912 894 850 754 2008 ex
Slide 13: Recent & Potential Staffing Industry Trends
Recent & Potential Staffing Industry Trends Temporary help penetration rate improved to 1.5%* in January 2010 versus 1.3%* in October 2009. Layoffs and economic uncertainty may create an increase in the temporary help penetration rate peak of 2%* in the last cycle. Recent revenue trends for most ind
Slide 14: Strategies for Growth
Strategies for Growth Operating Leverage of Existing Branch Network Same-branch revenue growth Cost controls Geographic Expansion Strategic Acquisitions
Slide 15: Operating Leverage Drives Profits
Operating Leverage Drives Profits Earnings Per Share Sensitivity Analysis (a) $2.50 $2.00 Share $1.50 per 2007 (peak) Earnings $1.00 $0.50 ($1.05M) $0.00 $1.0 $1.1 $1.2 $1.3 $1.4 $1.5 $1.6 $1.7 $1.8 $1.9 $2.0 $2.1 $2.2 Average Revenue per Branch ($ Millions) (a) Earnings per share sensitivity analys
Slide 16: Geographic Expansion Opportunities
Geographic Expansion Opportunities = Existing markets. Labor Ready CLP Spartan Centerline
Slide 17: Strategic Acquisitions
Strategic Acquisitions Quantitative Factors Qualitative Factors Return on investment Blue-Collar Financing Existing market tuck-ins New geographic markets New growth platforms
Slide 18: Financial Review
Financial Review
Slide 19: Revenue – Year Over Year Growth/Decline
Revenue – Year Over Year Growth/Decline 20% 10% 0% -10% -20% -30% -40% 2007 2008 Q1 ‘09 Q2 Q3 Q4 Q1 ‘10F Organic Growth Acquisition Growth F Q-1 2010 sales growth forecast based on the midpoint of the sales growth forecast announced by TrueBlue on Feb. 3, 2010.
Slide 20: Gross Margin Changes: 2007 through 2009
Gross Margin Changes: 2007 through 2009 33% +0.7% -2.0% 31% -0.8% 31.9% 29% 29.8% 27% 25% 2007 Reductions in Brand Mix Staffing Gross 2008 Workers’ Margin Compensation 33% +1.0% -0.9% 31% -1.3% 29% 29.8% 27% 28.6% 25% 2008 Reductions in Brand Mix Staffing Gross 2009 Workers’ Margin Compensation
Slide 21: Selling, General & Administrative Costs
Selling, General & Administrative Costs $360 $340 $337M $332M $320 $300 Millions $280 $260 $262M $240 $220 $200 2007 2008 2009 In millions. 2008 excludes goodwill and intangible asset impairment charges.
Slide 22: Strong Balance Sheet
Strong Balance Sheet FY 2009 FY 2008 Cash and investments $124M $108M Current ratio 2.9 2.5 Restricted cash $124M $120M Workers’ comp reserve $190M $204M Long-term debt $ 3M $ 2M Shareholders’ equity $285M $270M In millions.
Slide 23: Investment Highlights
Investment Highlights Leader in blue-collar staffing Poised to benefit from economic recovery Attractive long-term industry growth prospects Strong operating leverage New growth platforms and diversification