Slide 1: Q4 and Year-End 2014 Earnings Results
Q4 and Year-End 2014 Earnings Results Feb. 5, 2015 TRUEBLUF
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: Q4 2014 Highlights
Q4 2014 HIGHLIGHTS • Revenue and Adjusted EBITDA* growth of more than 50% • Stable revenue trends in legacy staffing business • Strong performance from newly acquired service lines • Income tax benefit of $7M; primarily due to WOTC, net of fees 3 Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015
Slide 4: Q4 2014 Highlights
Q4 2014 HIGHLIGHTS • 55% revenue growth from acquisitions • 1% organic revenue decline • 6.3% Adjusted EBITDA, excluding WOTC processing fees Revenue Adjusted EBITDA Adjusted EBITDA Margin Adjusted Earnings Per Share* $ 691 $ 42 6.1% $ 0.52 Q4 2014 CHANGE 4 * See Appendix for the definition of this
Slide 5: Gross Margin and Adjusted EBITDA Margin Bridges
Q4 2014 GROSS MARGIN AND ADJUSTED EBITDA MARGIN BRIDGES GROSS MARGIN ADJUSTED EBITDA MARGIN 5 Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015 26.8% (3.9%) 22.9% Q4 2013 Q4 2014Seaton Acquisition Q4 2013 6.1% 6.1% (0.2%) 0.1% 0.1% Q4 2014Seasonal Impact from Seaton Acquisition Legacy TrueBlue Im
Slide 6: SG&A Bridge
Q4 2014 SG&A BRIDGE 6 $0 $50 $100 $150 Q4 2013 Acquired Operations - Seaton WOTC Proccessing Fees Variable and Other Costs Q4 2014 $94M $117M $1M $23M ($1M) Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015 Amounts in millions.
Slide 7: Highlights – Legacy TrueBlue
Q4 2014 HIGHLIGHTS – Legacy TrueBlue Amounts in millions. • 3% revenue growth, excluding decline in green energy • Stable green energy revenue run rate • Costs flat with prior year • 6.3% Adjusted EBITDA, excluding WOTC processing fees Revenue Adjusted EBITDA Adjusted EBITDA Margin $ 445 $ 27 6.0% Q
Slide 8: Highlights – Seaton
Q4 2014 HIGHLIGHTS – Seaton Amounts in millions. • Strong results; meeting all performance expectations • All customers and senior management retained • Record Q4 results for on-premise staffing business • Strong RPO new customer pipeline Revenue Adjusted EBITDA Adjusted EBITDA Margin $ 246 $ 15 6.3
Slide 9: 2014 Highlights
2014 HIGHLIGHTS • Customer-focused changes made to legacy TrueBlue field management organization – Area management responsibilities now include multiple service lines – Encourages use of the optimal service line(s) • Recruiting technology and branch consolidations increase efficiencies • Seaton acqu
Slide 10: 2014 Highlights
2014 HIGHLIGHTS Amounts in millions, except for earnings per share. • 2% organic revenue growth • 4% organic revenue growth, excluding headwinds from energy projects • Fifth consecutive year of expanding Adjusted EBITDA margins FISCAL 2014 CHANGE Revenue Adjusted EBITDA Adjusted EBITDA Margin Adjust
Slide 11: 2014 Gross Margin and Adjusted EBITDA Margin Bridges
2014 GROSS MARGIN AND ADJUSTED EBITDA MARGIN BRIDGES 11 GROSS MARGIN ADJUSTED EBITDA MARGIN Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015 26.5% (1.8%) (0.2%) +0.2% 24.7% 2013 2014Seaton Acquisition TWC Acquisition Pricing & Other 2013 5.2% 5.4% 0.1% 0.1% 2014Impact from Seaton Acquisition Leg
Slide 12: 2014 SG&A Bridge
Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015 2014 SG&A BRIDGE 12 $0 $100 $200 $300 $400 $500 2013 Acquired Operations - Seaton Acquired Operations - MDT & TWC WOTC Processing Fees Non- Recurring Acquisition Costs Variable and Other Costs 2014 $362M $426M $44M ($2M) $8M $11M $3M Amounts in mi
Slide 13: Debt and Liquidity Highlights
$73 $74 $101 $128 $130 $137 $20 $30 2012 2013 2014 Jan. 2015 Cash Borrowing Availability -$130 -$107 $182 $97 2012 2013 2014 Jan. 2015 Total Debt Net Debt DEBT AND LIQUIDITY HIGHLIGHTS No Debt $30 $202 Total Debt Liquidity $121 $211 $203 Debt to Total Capital In millions. In millions. Certain amount
Slide 14: Expectations
Expectations TRUEBLUF
Slide 15: Q1 2015 Expectations
Amounts in millions except per share data. Q1 2015 EXPECTATIONS 15 Q4 and Year-End 2014 Earnings Results | Feb. 5, 2015 Total Revenue Total growth Excluding green energy Adjusted EBITDA Adjusted EPS Non-recurring Integration Costs Intangible Asset Amortization Legacy TrueBlue $ 397 - $407 2% 4% $ 7.
Slide 16: Appendix
Appendix TRUEBLUF
Slide 17: Non-GAAP Financial Measures
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 acquis