Slide 1: Q4 2012 Earnings Results
Q4 2012 Earnings Results JRUEBLUE
Slide 2: Forward-Looking Statement
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 financi
Slide 3: Q4 2012 Highlights
Q4 2012 Highlights • 2% total revenue decline; 3% gross profit increase • Revenue increased 4% excluding a large customer project • Stable monthly revenue trends • Improving construction market • Record year reducing accidents through improved safety practices graphic, photo, chart TRUEBLUE – Invest
Slide 4: Q4 2012 Highlights
Q-4 2012 Q-4 2011 Change Revenue $ 345 $ 350 -2% Gross profit $ 94 $ 92 3% % of Revenue 27.4% 26.2% SG&A expense $ 79 $ 77 3% % of Revenue 23.0% 21.9% Depreciation & amortization $ 5 $ 4 8% % of Revenue 1.4% 1.3% Income from operations $ 10 $ 11 -2% % of Revenue 3.0% 3.1% Net income $ 7 $ 8 -2% % of
Slide 5: Revenue Trends
Revenue Trends* graphic, photo, chart TRUEBLUE – Investor Presentation | Q4 2012 Earnings Results | page 5 -5% 0% 5% 10% 15% Q-1 12 Q-2 12 Q-3 12 Q-4 12 Quarterly Trends Revenue Growth Revenue Growth, Excluding Large Customer Project -5% 0% 5% 10% 15% Oct Nov Dec Monthly Trends * All calculations ba
Slide 6: Gross Margin Change
Gross Margin Change graphic, photo, chart TRUEBLUE – Investor Presentation | Q4 2012 Earnings Results | page 6 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% Q4 2011 Workers' Comp./Other Revenue Mix Pricing Q4 2012 26.2% 27.4% +0.5% +0.2% +0.5%
Slide 7: MDT Acquisition
MDT Acquisition
Slide 8: MDT Business Overview
MDT Business Overview • Third largest general labor staffing firm in the U.S. • $200 million annual revenue • 105 branches and 15 on-site locations in 25 states • Strongest presence in the Southeastern U.S. • Diversified customer base • Customer industries served similar to TrueBlue’s current busine
Slide 9: Combined Business
Combined Business • Annual revenue of $1.6 billion • MDT integration with Labor Ready creates $1 billion revenue general labor staffing business • Footprint of 800 branches at acquisition • Integration includes about 60 branch consolidations • Integration to be complete in Q2 2013 TRUEBLUE – Investo
Slide 10: Strategic Rationale
Strategic Rationale graphic, photo, chart • Significant market share growth • Increases scale in our general labor staffing business • Branch consolidation synergies drive operating leverage • Attractive purchase price at 4x EBITDA* • Infusion of new talent, including industry-experienced sales forc
Slide 11: Deal Summary
Deal Summary Purchase Price: $48 Million* Consideration: $12 Million cash $36 Million debt Note Terms: Five-year term + five one-year extensions 15-year principal amortization schedule LIBOR, plus 150 basis points Structure: Asset Purchase $8 Million Tax Asset * Additional $7 million paid at closing
Slide 12: 2013 Expectations
2013 Expectations
Slide 13: Q1 2013 Expectations
Q1 2013 Expectations Total revenue of $335M - $345M or growth of about 9%* • Organic revenue decline of ≈(1%)* • Organic revenue growth excluding large customer project ≈5%* Net loss per diluted share in Q1 2013 of ($0.05) – $0.00 • Includes Worker Opportunity Tax Credit (WOTC) benefit from 2012 of
Slide 14: 2013 Full Year Outlook
2013 Full Year Outlook graphic, photo, chart TRUEBLUE – Investor Presentation | Q4 2012 Earnings Results | page 14 In millions. * Represents the expected year over year reduction in project work in 2013 for our top aviation-related customer. ** Centralization of common operating processes and deploy
Slide 15: 2013 Outlook Operating Income to EBITDA Reconciliation
2013 Outlook Operating Income to EBITDA Reconciliation graphic, photo, chart *Adjusted EBITDA excludes one-time integration costs related to the MDT acquisition and one-time reorganization costs related to branch efficiencies from EBITDA. EBITDA and Adjusted EBITDA are key measures used by managemen