Trueblue, Inc. · NYSE:TBI
Trueblue — Q3 2013 Earnings Presentation
14 slides from Trueblue's earnings presentation, Oct 23, 2013
Slide 1: Q3 2013 Earnings Results
Q3 2013 Earnings Results Oct. 23, 2013 TRUEBLUE
Slide 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 periods, including statements regarding future financial performance. These forw
Slide 3: Q3 2013 Highlights
Q3 2013 HIGHLIGHTS • Revenue growth of 19 percent* – Solid monthly revenue trends – Slower start to some energy projects but go-forward energy demand remains strong • Growth across most industries and locations • Continued growth in construction • Favorable gross margin impact from disciplined manag
Slide 4: Q3 2013 Highlights
Q3 2013 HIGHLIGHTS Dollar amounts in millions. Certain amounts may not sum or recalculate due to rounding. Q-3 2013 Q-3 2012 Change Revenue $ 451 $ 379 19% Gross profit $ 124 $ 105 17% % of Revenue 27.4% 27.7% SG&A expense $ 91 $ 78 17% % of Revenue 20.1% 20.5% EBITDA* $ 33 $ 28 19% % of Revenue 7.3
Slide 5: Revenue Trends
REVENUE TRENDS -5% 5% 15% 25% Q-4 '12 Q-1 '13** Q-2 '13** Q-3 '13**0% 10% 20% 30% July** Aug.** Sept.** * All calculations based on comparison to same period a year ago. **MDT was acquired in the second week of February 2013. Due to the consolidation of MDT branches into existing branches, and mergi
Slide 6: Gross Margin Bridge
GROSS MARGIN BRIDGE 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% Q3 2012 MDT Acquisition* Sales Mix Operational Management / Other Q3 2013 27.7% 27.4% (1.0%) +0.5% +0.2% * Due to the consolidation of MDT branches into existing branches, and merging customers and workforces, the gross margin impact cann
Slide 7: SG&A Bridge
$0 $20 $40 $60 $80 $100 Q3 2012 MDT Operations* Variable and Other Costs Q3 2013 +$10M $78M $91M +$3M SG&A BRIDGE * Due to the consolidation of MDT branches into existing branches, and merging customers and workforces, SG&A costs cannot be segregated and accurately calculated. Amounts listed represe
Slide 8: The Work Connection Acquisition
The Work Connection Acquisition TRUEBLUE
Slide 9: The Work Connection – Business Overview
THE WORK CONNECTION – BUSINESS OVERVIEW • $90 million of go-forward annual revenue • 37 branches operating in nine states • Strongest presence in the Midwest • Diversified client base Q3 2013 Earnings Results | Oct. 23, 2013 | page 9
Slide 10: Strategic Benefits
STRATEGIC BENEFITS • Market share growth in core blue-collar staffing business • Expands the range and reach of TrueBlue’s light industrial staffing business line Spartan Staffing • Attractive purchase price at 4 X EBITDA* • Addition of new talent with strong industry experience • Excellent cultural
Slide 11: Integration Plans
INTEGRATION PLANS • The Work Connection to be merged into Spartan Staffing business line • Integration will be substantially complete by the end of 2013 • Minimal branch consolidations Q3 2013 Earnings Results | Oct. 23, 2013 | page 11
Slide 12: Q4 2013 Expectations
Q4 2013 EXPECTATIONS Total revenue of $430 million - $440 million or growth of about 26 percent* • Excluding revenue from The Work Connection acquisition, revenue growth would be about 20 percent Net income per diluted share of $0.30 - $0.35 * Based on comparison to same period a year ago. Q3 2013 E
Slide 13: Appendix
Appendix TRUEBLUE
Slide 14: Q3 2013 Operating Income to EBITDA and Adjusted EBITDA Reconciliation
Q3 2013 OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA RECONCILIATION * EBITDA is non-GAAP financial measure which excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA excludes non-recurring costs related to the purchase, integration, reorganization and shutdown a