Trueblue, Inc. · NYSE:TBI
Trueblue — Labor Ready — Investor Presentation (June 2003)
28 slides from Trueblue's investor presentation, Jun 4, 2003
Slide 1: Link
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Slide 2: Safe Harbor Statement
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Slide 3: Introduction to Presenters
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Slide 4: Equity Snapshot
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Slide 5: Link
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Slide 6: Fragmented, Growth Industry
FRAGMENTED, GROWTH INDUSTRY = Staffing: $149 billion industry ® = Industrial staffing: $16 billion @ = Day labor market: $5 billion © Day Labor Market Breakdown Tops Labor Ready Competitors 14% 13% Untapped Demand 31% Other (@) 2003 Staffing Industry Sourcebook Competitors (b) Research estimates 42%
Slide 7: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE = Nearly 275,000 customers = Largest customer represents less than 2% of sales ™ Average yearly sales per customer of $3,000 = Over 400 industry classifications Sales by Industry Manufacturing 20% Transportation 10% Retail 7%
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Slide 9: Link
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Slide 10: Rapid Branch Expansion
RAPID BRANCH EXPANSION Number of Branch Offices ooo 00 ™ 40% CAGR wal ‘lo Ht 199419981996 1997 a9 gD 20002002002 = Quickly developed branch footprint = Optimizing investment to extract leverage
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Slide 12: Branch Office Model
BRANCH OFFICE MODEL = Real-time matching of customer and worker needs BRANCH OFFICE: + Process work orders + Assign work orders + Provide safety equipment and arrange transportation| WORK SITE: + Work performed + Customer endorses work order BRANCH OFFICE: + Workers exchange work order for payment L
Slide 13: Key Revenue Drivers
KEY REVENUE DRIVERS = Bill rate = Wage inflation = Increased taxes and insurance = Volume of work orders = Customer retention = Customer acquisition
Slide 14: Key Business Strategies
KEY BUSINESS STRATEGIES = Grow current markets = Expand internationally = Enhance customer service V4 = Expand in smaller markets LABOR READY
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS = Improving profitability = Consistent gross margins = Significant operating leverage = Strong balance sheet
Slide 16: Financial Performance
FINANCIAL PERFORMANCE 2003 2001 | 2002 | Forecast * Revenue sai7m | sseam | $880-$900M " EPS $0.23 | $0.28 | $0.30-90.35 * EBITDA $22mM | $30M $35M (@) Based on management guidance issued on April 15, 2003 LABOR READY
Slide 17: Long-Term Growth
LONG-TERM GROWTH $M $M ° Annual Revenue and EBITDA " 1200 50 45 1000 40 Revenue 800 36 30 600 25 20 400 i 200 to 5 ° 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003E ° EBITDA LABOR READY
Slide 18: Seasonal Business
SEASONAL BUSINESS insm Quarterly Revenue 300 mere a a a 201 O301_a4nt 102 202 0302 _c402_a103 250 201 161 101 al LABOR READY ‘Dependable Tonporary Labor
Slide 19: Trends in Temporary Staffing
TRENDS IN TEMPORARY STAFFING U.S. Help Supply % Growth (# of Employees) — Tot non-Fam Laver Fores Growth — Help supp rout Zap, ap. Tp, 7p, "Op. "bp, "0p, '0y, %%p, "%,, "by, 0p, Xp, by, "by, be, by, %, %, %,% ey "A, "ag "Any "0, "Yay "ay "U0, "00, "bey ay, "8D "G0, ay, "G0, "Pg Yay Meg, to, V0, %, C
Slide 20: Labor Ready vs. Staffing Industry
LABOR READY VS. STAFFING INDUSTRY 10% ELS Help Supply Growth * ~o-LRW US. Sales Growth 5% 0% Sh 10% 15% 20% 25% IFMAMIJIASONDIFMAMI JASONDIFM it 2 B * Not seasonally adjusted. LABOR READ!
Slide 21: Bill Rate Economics
BILL RATE ECONOMICS $12/hr. Bill Rate Illustration @ Workers’ Wages $12 per hour bill rate Workers’ Compensation Payroll Taxes Gross Margin ~ 30% (2) Iusttaon only. Amounts could vary depending on neato, job type and stage of economic cycle
Slide 22: Consistent Gross Margins
CONSISTENT GROSS MARGINS Gross Margins As a Percentage of Revenue i994 1995 «1998 1997 1998 1999 2000 2001 2002
Slide 23: Branch Maturity Drives Revenue
Revenue BRANCH MATURITY DRIVES REVENUE in gm $1600 $1,400 $1,200 $1000 $800 $600 $400 $200 $0 Branch Revenue and Maturity 8s. 6 Yrs TVs. avis 25% 20% 15% 10% 5% 0% Maturity
Slide 24: Branch Profit Potential
BRANCH PROFIT POTENTIAL Sensitivity analysis based on | a | Revenue $1,100,000 $1,500,000 Gross Profit 330,000 450,000 Gross Profit Margin 30% 30% Branch Expenses 220,000 255,000 As a % of Revenue 20% 11% Operating Income $110,000 $195,000 Operating income Margin [0%] Es)
Slide 25: Operating Leverage Drives Profits
OPERATING LEVERAGE DRIVES PROFITS Earnings per Share Assumption #200) Earnings Per Share Sensitivity Analysis ‘* $180 $1.60 $140 $1.20 $1.00 $0.80 4 $0.60 $0.40 $90.20 q $000 - L $16 7 $18 $19 $20 (2) Eamings per share sensitivity analysis based on 780 offices, 30% gross profit margin, management’ e
Slide 26: Strong Balance Sheet
STRONG BALANCE SHEET As of December 31, 2002: = Cash and equivalents $91M = Current ratio 3.0 = Restricted cash $95M =" Workers’ compensation reserve $86M = Long term debt $76M = Shareholders’ equity $132M = DSOs <30 days
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS = Market leader in fragmented industry = Diverse customer base = Brand name recognition ™ Scalable and flexible model = Large and growing market LABOR READ!
Slide 28: Searchable text section of graphics shown above
Searchable text section of graphics shown above [GRA PHIC] [LOGO] INVESTOR RELATIONS 2 nd QUARTER 2003 We Put People to Work. SAF E 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 fut