Trueblue, Inc. · NYSE:TBI
Trueblue — Q3 2020 Earnings Presentation
16 slides from Trueblue's earnings presentation, Oct 26, 2020
Slide 1: Q3 2020 Earnings
Q3 2020 Earnings October 2020
Slide 2: Forward-looking statements
Forward-looking statements This document contains forward-looking statements relating to our plans and expectations, all of which are subject to risks and uncertainties. Such statements are based on management’s expectations and assumptions as of the date of this release and involve many risks and u
Slide 3: Q3 2020 summary
Q3 2020 summary Company returns to profitability ▪ Total revenue -25% v. -39% for Q2 2020 – driven by widespread trend improvement across our staffing businesses ▪ Net income of $9 million v. net loss of $8 million in Q2 2020 ▪ Adjusted EBITDA1 of $18 million v. $-5 million in Q2 2020 Significant co
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2020 Q3 2019 Change Revenue $475 $637 -25 % Net Income $8.8 $26.7 -67 % Net Income Per Diluted Share $0.25 $0.68 -63 % Adjusted Net Income¹ $8.2 $29.8 -72 % Adj. Net Income Per Diluted Share $0.24 $0.76 -68 % Adjusted EBITDA $17.7 $39.3
Slide 5: Monthly revenue trends
Monthly revenue trends (22)% (27)% (29)% (35)% June July August September Total TrueBlue 1% (2)% (12)% (10)% (19)% (15)% (27)% (29)% (32)% (40)% (39)% (52)% (53)% (54)% June July August September October MTD* PeopleReady PeopleManagement PeopleScout www.TrueBlue.c *MTD results reflect the three week
Slide 6: Gross margin and SG&A bridges
Gross margin and SG&A bridges 1 26.3% 23.3% -2.3% -0.7% Gross Margin Q3 2019 Staffing RPO Q3 2020 Amounts in millions $130 -$4 $90 -$36 SG&A Q3 2019 Adjusted EBITDA Core business Q3 2020 exclusions2 1 We have made certain reclassifications between cost of services and SG&A expense in the prior year
Slide 7: Q3 2020 results by segment
Q3 2020 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $294 $147 $34 % Growth -29% -8% -48% Segment Profit1 $19 $5 $0 % Growth -39% 35% -97% % Margin 6.4% 3.1% 1.0% Change -110 bps 100 bps -1570 bps Notes: ■ Revenue was -29% v. -43% ■ Revenue was -8% v. -23%
Slide 8: Segment strategy highlights
Segment strategy highlights ▪ Digitize our business ▪ Continue momentum on ▪ Capture opportunities in model to gain share from new customer wins an industry poised for smaller and less well- through strong execution growth capitalized competitors of sales initiatives ▪ Leverage our strong ▪ Increase
Slide 9: Leveraging our digital strategy: JobStack Q3 2020 Update
Leveraging our digital strategy JobStackTM Q3 2020 Update ■ 726,000 shifts filled via JobStack in Q3 2020, representing a digital fill rate of 51% ■ 26,100 client users, up more than 37% compared to Q3 2019 Industry-leading mobile app that connects our associates with jobs and simplifies client orde
Slide 10: Balance sheet remains strong
Balance sheet remains strong Liquidity Total Debt Amounts in millions Amounts in millions 1 Borrowing Availability Cash Net Debt Cash $295 $260 $38 $47 $119 $167 $146 $29 $80 $29 $257 $28 $213 $37 $47 $2 $117 $139 $90 $33 $38 $28 2017 2018 2019 Q3 2020 2017 2018 2019 Q3 2020 Total Debt to Capital2 S
Slide 11: Outlook
Outlook [5] trueblue
Slide 12: Selected outlook information
Selected outlook information Item Q4 2020 FY 2020 Q4 Commentary -250 to -190 -270 to -210 Gross Margin Gross margin headwinds primarily due to bill and pay rate pressure, lower volume and client mix. bps v. prior year bps v. prior year Cost Savings $23 to $27M $102 to $106M Reflects expected year-ov
Slide 13: Appendix
Appendix [5] trueblue
Slide 14: 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 15: Reconciliation of GAAP net income to adjusted net income and EBITDA
1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE (Unaudited) 13 Weeks Ended (in thousands, except for per share data) Sep 27, 2020 Jun 28, 2020 Sep 29, 2019 Net income (loss) $ 8,795 $ (8,168) $ 26,676 Amortization of int
Slide 16: Footnotes
Footnotes: 1. Amortization of intangible assets of acquired businesses. 2. Acquisition/integration costs for the acquisition of TMP Holding LTD completed on June 12, 2018. 3. Other adjustments for the 13 weeks ended September 27, 2020 primarily include $4.1 million in COVID-19 government subsidies w