Slide 1: Q4 2019 Earnings
Q4 2019 Earnings February 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: Results and strategy overview
Results and strategy overview Managing costs in-line Progress on digital Returning capital with revenue strategy to shareholders ¬ Total revenue -9% v. outlook of ¬ 875,000 shifts were filled via ¬ $8 million of stock -10% to -6% JobStack in Q4 2019, down from repurchased in Q4 2019 ¬ Operating expe
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q4 2019 Change FY 2019 Change Revenue $591 -9% $2,369 -5% Net Income $8.7 -41% $63.1 -4% Net Income Per Diluted Share $0.23 -38% $1.61 -1% Adjusted Net Income¹ $14.8 -39% $80.3 -13% Adj. Net Income Per Diluted Share $0.39 -36% $2.05 -10% A
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 26.5% Gross Margin 25.4% -0.6% -0.5% Q4 2018 Staffing RPO Q4 2019 Amounts in millions $145 $134 -$1 -$10 SG&A Q4 2018 Adjusted EBITDA Core business Q4 2019 exclusions¹ 1 Adjusted EBITDA further excludes from EBITDA Work Opportunity Tax Credit third-party processing fees
Slide 6: Q4 2019 results by segment
Q4 2019 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $365 $171 $55 % Growth -9% -7% -18% Segment Profit1 $18 $3 $5 % Growth -19% -45% -54% % Margin 4.9% 1.6% 9.8% Change -60 bps -110 bps -770 bps ¬ Revenue was -9% v. -4% last ¬ Revenue was -7% v. -12% last
Slide 7: 2019 headwind information
2019 headwind information Amounts in millions n PeopleScout Clients¹ n Retail Client (PeopleManagement) $26 n Amazon (PeopleManagement) n PlaneTechs (PeopleManagement) Revenue Headwinds 5 $64 18 $16 $15 12 3 15 6 6 $8 3 24 8 8 6 6 8 Q1-19 Q2-19 Q3-19 Q4-19 FY 2019 Segment Profit Headwinds $6 $18 $5
Slide 8: Leading our business into a digital future
Leading our business into a digital future TM JobStack Industry-leading mobile app that connects our Industry-leading platform for sourcing, screening associates with jobs and simplifies client ordering and delivering a permanent workforce Year Achievements Digital Fills1 Client Users Before After S
Slide 9: Strong balance sheet and return of capital
Strong balance sheet and return of capital Total Debt Debt to Total Capital1 Amounts in millions Net Debt Cash $138 $119 $35 21% $29 $80 18% $47 $37 12% $103 $90 6% $33 $38 2016 2017 2018 2019 2016 2017 2018 2019 Liquidity Share Repurchase % of Free Cash Flow2 Amounts in millions Borrowing Availabil
Slide 10: Outlook
Outlook | trueblue THE PEOPLE COMPANY
Slide 11: Q1 outlook
Q1 outlook Amounts in millions, except per share data Outlook Notes $503 to $528 Revenue: Total TrueBlue¹ -9% to -4% growth l Incremental improvement v. Q4 2019 based on recent trends Revenue: PeopleReady $303 to $314 l Incremental improvement v. Q4 2019 based on recent trends -7% to -4% growth Reve
Slide 12: Appendix
Appendix | trueblue THE PEOPLE COMPANY
Slide 13: 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 14: Reconciliation of GAAP net income 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 2019 Q4 2018 Q1 2020 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Dec 29, 2019 Dec 30, 2018 Mar 29, 2020 Net income (lo
Slide 15: Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (Unaudited) Q4 2019 Q4 2018 Q1 2020 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands) Dec 29, 2019 Dec 30, 2018 Mar 29, 2020 Net income (loss) $ 8,715 $ 14,887 $ (2,500) — $ 100 Income tax expense 638 2
Slide 16: Reconciliation of operating cash flow to free cash flows
3. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOWS (Unaudited) 2019 2018 2017 2016 52 Weeks Ended 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended (in thousands) Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Net cash provided by operating activities $ 94,542 $ 125,692