Trueblue, Inc. · NYSE:TBI
Trueblue — Non-Deal Roadshow (April 2023)
22 slides from Trueblue's roadshow presentation, Apr 24, 2023
Slide 1: Investor Roadshow Presentation
Investor Roadshow Presentation
Slide 2: Forward-looking statements and non-GAAP financial measures
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, expected growth from our digital investments,
Slide 3: Investment highlights
Investment highlights Return of Capital Market leader in U.S. blue collar staffing and global RPO with increasingly diverse service offerings Highly fragmented industry with strong growth potential from secular forces Strong balance sheet and cash flow to support stock buybacks Advancing technology
Slide 4: Our Mission: Connecting People and Work
Our Mission: Connecting People and Work 84,000 Clients served annually with strong diversity1 611,000 People connected to work during 2022 One of the largest U.S. industrial staffing providers One of the largest global RPO providers 2018-2022 Average Return on Equity2 13% Returning Value to Sharehol
Slide 5: Three specialized segments meet diverse client needs
PeopleReady PeopleScout PeopleManagement TrueBlue Incremental Segment profit / EBITDA margin2 15 – 20% 27 – 32% 8 – 13% 15 – 20% Revenue1 Segment profit mix1 Segment profit margin1 7% 14% 2% Three specialized segments meet diverse client needs On-demand general and skilled labor for industrial jobs
Slide 6: Solving workforce challenges
Solving workforce challenges Workforce Complexity Many factors, including globalization, the “gig” economy and diversity are changing the world of work requiring a disciplined approach to hiring. Artificial Intelligence Companies are seeking ways to become nimbler and more efficient Deploying AI to
Slide 7: US Industrial Staffing: Opportunity to capture market share
US Industrial Staffing: Opportunity to capture market share Represents ~30% of $680B global staffing market Industrial temporary staffing ($39B) One of the largest U.S. segments (~20%) Skilled Trades (PR) On-site Hourly On Demand (PR) On-site Cost Per UnitTrucking (CL) United States Staffing Market
Slide 8: Recruitment Process Outsourcing: High margin plus double-digit revenue growth
Recruitment Process Outsourcing: High margin plus double-digit revenue growth Global RPO Market ~$6B1 Why RPO? “Immature” market with no one dominant player Traditionally “sticky” business model with high client retention and engagement Industry produced double-digit annual revenue growth hist
Slide 9: Strategically positioned for secular growth
Strategically positioned for secular growth Strong position in attractive vertical markets Powerful secular forces in industrial staffing Deepening of the general contingent labor pool as workers across the generational spectrum are embracing the gig economy (e.g. millennials with side- hustles an
Slide 10: Advance technology and enhance the experience for those we serve to grow market share
Advance technology and enhance the experience for those we serve to grow market share Strategy highlights and priorities Digitalize our business model to gain market share from smaller, less capitalized competitors and reduce expenses Advance JobStackTM capabilities to better accommodate our ass
Slide 11: PeopleReady: Focusing on digital transformation and operational excellence
Combine the strength of our geographic footprint and JobStackTM capabilities o Customers and associates can connect 24/7 via JobStack app o Expansive coverage through branches and regional service centers o Digitalization enables operational efficiencies Enhance customer and associate experience
Slide 12: PeopleScout: Industry leader with historically high margins
PeopleScout: Industry leader with historically high margins Strong Growth Prospects o Demonstrated track record servicing large employers with dynamic needs in growing industries o Augmenting sales teams to gain market share in high growth sectors o Global focus as growing number of deals are mult
Slide 13: PeopleManagement: Expanding market share and margin
PeopleManagement: Expanding market share and margin Business model is more insulated from cyclical changes due to the outsourced nature of our client relationships Sales teams are scaling in underserved markets to expand share Opportunity to raise margin profile through higher penetration of w
Slide 14: ESG principles help us make sound decisions
ESG principles help us make sound decisions AAA Rating Risk Ranking: Low Risk Exposure: Low Risk Management: Average Key Statistics: 75% of board members are women or racially diverse 50% of senior management are women 97% of voting shareholders approved executive compensation How ESG guides o
Slide 15: Balance sheet remains strong
Balance sheet remains strong 1 Total debt to capital calculated as total debt divided by the sum of total debt plus shareholders’ equity. 2 Calculated as adjusted net income divided by average shareholders’ equity over the prior four quarters. See the appendix to this presentation and “Financial Inf
Slide 16: Focused capital strategy
Focused capital strategy Investing in technology and returning excess capital to shareholders 24% 42% 29% 5% (2018 - 2022) Net debt reductions Share repurchases, net Capital expenditures Acquisitions Historical use of capitalCapital allocation priorities Strategic technology investments to further
Slide 17: Strong track record of returning capital to shareholders
Strong track record of returning capital to shareholders $204 million of capital returned to shareholders via share repurchases over the last five years (2018-2022) 2.2M shares repurchased 6% reduction in shares outstanding 1 Year 6.4M shares repurchased 17% reduction in shares outstanding 9.6M shar
Slide 18: Leadership with deep industry experience
Leadership with deep industry experience Steve Cooper Director and CEO 20+ years of industry experience 12 years as TrueBlue CEO TrueBlue Director since 2006 Derrek Gafford EVP and CFO 20+ years of industry experience 19 years of CFO experience TrueBlue CFO since 2006 Taryn Owen President and COO 20
Slide 19: Appendix
Appendix trueblue THE PEOPLE COMPANY"
Slide 20: Non-GAAP financial measures and non-GAAP reconciliations
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 certain aspects of our
Slide 21: Reconciliation of U.S. GAAP net income (loss) to adjusted net income
RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited) 52 weeks ended (in thousands) Dec 25, 2022 Dec 26, 2021 Dec 27, 2020 Dec 29, 2019 Dec 30, 2018 Net income (loss) $ 62,273 $ 61,634 $ (141,841) $ 63,073 $ 65,754 Gain on divestiture (1) — — — — (718) Amortization of inta
Slide 22: Footnotes
Footnotes: 1. Gain on the divestiture of our PlaneTechs business, sold mid-March 2018. 2. Amortization of software as a service assets is reported in selling, general and administrative expense. 3. Acquisition and integration costs related to the acquisition of TMP Holdings LTD completed on June 12,