Slide 1: Q2 2014 Earnings Results
Q2 2014 Earnings Results July 24, 2014 TRUEBLUE
Slide 2: Forward-Looking Statement
Q2 2014 Earnings Results | July 24, 2014 | page 2 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 peri
Slide 3: Q2 2014 Highlights
Q2 2014 HIGHLIGHTS • Total revenue growth of 7% - 2013 acquired revenue performing well - Organic revenue growth of 3%; seasonal business ramping as expected • Continued success incorporating higher statutory costs into bill rates • $5M income tax benefit from additional tax credits • $2M of deal/in
Slide 4: Highlights
Q2 2014 HIGHLIGHTS Dollar amounts in millions. Q2 2014 Q2 2013 Change Revenue $ 453 $ 422 7% Gross profit $ 120 $ 112 7% % of Revenue 26.4% 26.5% SG&A expense $ 96 $ 89 8% % of Revenue 21.3% 21.2% EBITDA* $ 23 $ 23 3% % of Revenue 5.1% 5.3% Adjusted EBITDA* $ 25 $ 24 4% % of Revenue 5.6% 5.8% * EBIT
Slide 5: Revenue Trends
REVENUE TRENDS 0% 10% 20% 30% Q3 '13 Q4 '13 Q1 '14 Q2 '14 0% 5% 10% April May June * All calculations based on comparison to same period a year ago. Monthly Trends* Quarterly Trends* Q2 2014 Earnings Results | July 24, 2014 | page 5 Anniversary of MDT acquisition occurred in Q1 2014
Slide 6: Gross Margin Bridge
GROSS MARGIN BRIDGE 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% Q2 2013 Acquisition Mix Operational Management Q2 2014 26.4% (0.4%) 0.3% 26.5% Q2 2014 Earnings Results | July 24, 2014 | page 6
Slide 7: SG&A Bridge
SG&A BRIDGE 1 Non-recurring acquisition costs for 2013 include costs related to the acquisition, integration, reorganization, and shutdown activities of the MDT acquisition which was completed in 2013. 2 Non-recurring acquisition costs for the 13 weeks ended June 27, 2014 related to the acquisition
Slide 8: Seaton Acquisition
Seaton Acquisition TRUEBLUE
Slide 9: Transaction Overview: Acquisition Structure
Q2 2014 Earnings Results | July 24, 2014 | page 9 Acquisition Structure • Purchase Price of $310M to acquire 100% of Seaton’s equity and tax assets with a net present value of ~$20M – 7.8x forward 12 months Adjusted EBITDA1 purchase multiple, net of acquired tax asset • Funded via $123M of Cash and
Slide 10: Acquisition Delivers Strong Shareholder Return
ACQUISTION DELIVERS STRONG SHAREHOLDER RETURN Q2 2014 Earnings Results | July 24, 2014 | page 10 1 Seaton impact excluding amortization. 2 Excludes management estimate of amortization of purchased intangibles. Purchase accounting is in process. Actual Pro forma, incl. Seaton1 13% 13% 16% $0.25 COMPE
Slide 11: Outsourcing Solutions (Seaton) – Expectations
OUTSOURCING SOLUTIONS (SEATON) – EXPECTATIONS 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, reorganiz
Slide 12: Expectations
Expectations TRUEBLUE
Slide 13: In millions except per share data. Certain amounts may not sum or recalculate due
In millions except per share data. Certain amounts may not sum or recalculate due to rounding. 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 cost
Slide 14: Net Income to EBITDA and Adjusted EBITDA Reconciliation
Q2 2014 NET INCOME TO EBITDA AND ADJUSTED EBITDA RECONCILIATION Q2 2014 Net income 16.1 $ Q2 2013 12.5 $ In millions Depreciation & amortization 5.2 $ EBITDA* 23.2 $ Non-recurring acquisition costs 2.0 $ Adjusted EBITDA* 25.2 $ 5.2 $ 22.5 $ 1.8 $ 24.3 $ Income tax expense 2.4 $ 5.1 $ Interest and ot
Slide 15: Reconciliation of GAAP Operating Income to EBITDA Excluding Seaton
RECONCILIATION OF GAAP OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE COMPANY EXCLUDING SEATON * EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income or depreciation and amortization from operating income.
Slide 16: Reconciliation of GAAP Operating Income (Loss) to EBITDA for Seaton
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA FOR SEATON 1 1 Post acquisition, Seaton will now be referred to as “Outsourcing Solutions” 2 Management’s estimate of amortization of purchased intangibles. Purchase accounting in process. Depreciation of approximately $1M