Slide 1: Q4 2023 Earnings
Q4 2023 EARNINGS trueblue THE PEOPLE COMPANY®
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This presentation contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in d
Slide 3: Q4 2023 Overview
Q4 2023 Overview Total revenue -12% ▪ Clients continued to be cost conscious and selective in the roles they chose to fill ▪ Softness in revenue trends for staffing businesses with the exception of renewable energy projects ▪ Q4 2023 included 14th week — Revenue -15% on comparable 13-week basis and
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q4 2023 Change FY 2023 Change Revenue $492 -12% $1,906 -15% Revenue on comparable 13- and 52-week basis $472 -15% $1,886 -16% Net loss -$2.6 NM -$14.2 NM Net loss per diluted share -$0.08 NM -$0.45 NM Net loss margin -0.5% -180 bps -0.7% -
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 26.5% 0.3% 26.1% Gross margin -0.7% Q4 2022 Bill / Pay Mix Q4 2023 spread Amounts in millions $134 $7 $130 SG&A -$10 -$1 Q4 2022 Core business Adjusted EBITDA 14th week Q4 2023 exclusions1 impact2 1 Represents the year-over-year change in Adjusted EBITDA exclusions impa
Slide 6: Q4 2023 Results by segment
Q4 2023 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $285 $47 $160 % Change -9% -31% -8% Segment profit1 $8 $3 $3 % Change -65% +16% -33% % Margin 2.8% 6.2% 1.7% Change -430 bps +260 bps -70 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • -13% on comparable 1
Slide 7: Strong balance sheet with zero debt and ample liquidity
Strong balance sheet with zero debt and ample liquidity Amounts in millions Liquidity Share repurchases 1 2 Borrowing availability Cash Share repurchases Buyback ratio $365 $344 6% 6% 5% $50 $72 2% $224 $61 $52 $63 $148 $294 $293 $34 $62 $161 $17 $86 2020 2021 2022 2023 2020 2021 2022 2023 Note: Fig
Slide 8: Outlook
Outlook
Slide 9: Select outlook information
Select outlook information Item Q1 2024 Commentary $392M to $417M Revenue Assumes current market conditions continue into Q1 with a less challenging prior year comparison. -16% to -10% v. prior year -210 to -170 Gross margin decline due to changes in business mix and prior year workers’ compensation
Slide 10: Appendix
Appendix
Slide 11: 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 12: Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income
1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) Q4 2023 Q4 2022 2023 2022 14 weeks 13 weeks 53 weeks 52 weeks ended (1) ended ended (1) ended (in thousands, except for per share data) Dec 31, 2023 Dec 25, 2022 Dec 31, 2023
Slide 13: Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (Unaudited) Q4 2023 Q4 2022 2023 2022 14 weeks 13 weeks 53 weeks 52 weeks ended (1) ended ended (1) ended (in thousands) Dec 31, 2023 Dec 25, 2022 Dec 31, 2023 Dec 25, 2022 Net income (loss) $ (2,551) $ 7,045 $ (14,173) $
Slide 14: Reconciliation of GAAP SG&A Expense to Adjusted SG&A Expense
3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE (Unaudited) Q4 2023 Q4 2022 2023 2022 14 weeks 13 weeks 53 weeks 52 weeks ended (1) ended ended (1) ended (in thousands) Dec 31, 2023 Dec 25, 2022 Dec 31, 2023 Dec 25, 2022 Selling, general and admini
Slide 15: Footnotes
Footnotes: (1) Our fiscal period ends on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter consists of 14 weeks, while in fiscal years consisting of 52 weeks, all quarters consist of 13 weeks. (2) Amortization of software as a service assets is