Trueblue, Inc. · NYSE:TBI

Trueblue — Q2 2018 Earnings Presentation

17 slides from Trueblue's earnings presentation, Jul 30, 2018

  1. Slide 1: July 30, 2018 www.TrueBlue.com

    July 30, 2018 www.TrueBlue.com

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements

  3. Slide 3: Q2 2018 summary

    Q2 2018 summary Total company and PeopleReady returned to growth  Total revenue +1% v. -2% in Q1  Organic revenue1 excluding PlaneTechs2 +2% v. -2% in Q1  PeopleReady, the largest segment, +2% v. -5% in Q1  PeopleManagement -7%, -2% excluding PlaneTechs  PeopleScout +25%, +19% organic Strong EP

  4. Slide 4: Financial summary

    Financial summary Amounts in millions, except per share data Q2 2018 Y/Y Change Revenue $614 1% (+2% organic, ex-PlaneTechs) Net Income $17.7 +35% Net Income Per Diluted Share $0.44 +42% Adjusted Net Income1 $23.1 +33% Adj. Net Income Per Diluted Share $0.57 +36% Adjusted EBITDA $33.4 +9% Adjusted E

  5. Slide 5: Gross margin and SG&A bridges

    Gross margin and SG&A bridges Gross Margin 0.9% 0.6% 27.0% 25.5% Q2 2017 PeopleScout PeopleReady & Q2 2018 PeopleManagement Amounts in millions SG&A $134 $1 $6 $125 $2 Q2 2017 EBITDA add-backs* TMP operating expense Core business Q2 2018 *Integration and acquisition costs and implementation costs fo

  6. Slide 6: Q2-18 segment update

    Q2-18 segment update Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $377 $179 $58 % Growth +2% -7% +25% (-2% ex-PlaneTechs) (+19% organic) Segment Profit1 $23.2 $4.7 $11.3 % Growth 21% -25% +12% (-15% ex-PlaneTechs) (+9% organic) % Margin 6.1% 2.6% 19.5% Y/Y Change +100 bps -60

  7. Slide 7: Segment strategy highlights

    Segment strategy highlights  Worker component of  Attractive on-premise  Global RPO market JobStackTM mobile app solution experiencing strong fully deployed growth o Perfect fit for larger clients with longer-  Industry leading  6,975 unique clients on duration / strategic proprietary technolog

  8. Slide 8: TMP Holdings LTD acquisition overview

    TMP Holdings LTD acquisition overview • TMP Holdings LTD is a mid-sized RPO / employer branding provider operating in the United Kingdom, which is the second largest RPO market in the world • Brings UK presence and referenceable UK RPO clients which add credibility in winning new Overview multi-cont

  9. Slide 9: TMP strengthens PeopleScout's European presence

    TMP strengthens PeopleScout’s European presence + TMP Holdings LTD  Bolsters PeopleScout's position as #1 global provider of RPO services1  Global RPO market is expected to grow 12% over the next five years2  PeopleScout’s segment profit margin was >20% in 2017  30% of all RPO engagements are no

  10. Slide 10: Lower debt and ample liquidity

    Lower debt and ample liquidity $246 $30 Amounts in millions $138 $119 $117 Total Debt $35 Net Debt Cash $216 $29 $33 $103 $90 $84 2015 2016 2017 Q2-18 Amounts in millions $216 $171 $33 Liquidity $146 Borrowing Availability Cash $35 $107 $29 1 $30 $183 $136 $117 $77 2015 2016 2017 Q2-18 Debt to Total

  11. Slide 11: Outlook

    Outlook trueblue

  12. Slide 12: Q3 2018 outlook

    Q3 2018 outlook Amounts in millions, except per share data Pro-forma Revenue Outlook % Growth Notes % Growth1 Total2 $662 to $677 0% to 2% 1% to 3% • Total company and PeopleReady headwind of about 1% from PeopleReady hurricane-related business in Q3-17 PeopleReady $413 to $423 0% to 2% 0% to 2% • A

  13. Slide 13: Select 2018 outlook information

    Select 2018 outlook information Amounts in millions PeopleManagement: Amazon  Loss of Amazon Canadian business effective September 1, 2018 is expected to create a revenue headwind of approximately $8M in Q3-18 (4% growth headwind for PeopleManagement and 1% for total TBI) and $24M in Q4-18 (11% for

  14. Slide 14: Appendix

    Appendix trueblue

  15. Slide 15: 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

  16. Slide 16: Reconciliation of U.S. GAAP net income to adjusted net income

    1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE (Unaudited) Q2 2018 Q2 2017 Q3 2018 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Jul 1, 2018 Jul 2, 2017 Sep 30, 2018 Net income $ 17,732 $ 1

  17. Slide 17: Reconciliation of U.S. GAAP revenue to organic revenue

    3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Q2 2018 Q2 2017 13 Weeks Ended 13 Weeks Ended (in thousands) Jul 1, 2018 Jul 2, 2017 Revenue from services $ 614,301 $ 610,122 Acquired entity revenue (2,851) — Organic revenue $ 611,450 $ 610,122 Footnotes: 1. Adjustment to the g

TrueBlue — Q2 2018 Earnings Presentation on 6ix