Slide 1: Q2 2023 Earnings
| trueblue THE PEOPLE COMPANY™ Q2 2023 Earnings
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, and expected growth from our digital investme
Slide 3: Q2 2023 Overview
Q2 2023 Overview Total revenue -16% ▪ Existing client demand softened during the quarter • Macroeconomic uncertainty causing clients to be more cost conscious • Clients are increasingly selective on the jobs they choose to fill Net loss was $7 million v. net income of $24 million in Q2 2022 ▪ Includ
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q2 2023 Q2 2022 Change Revenue $476 $569 -16% Net income (loss) -$7.3 $24.0 NM Net income (loss) per diluted share -$0.24 $0.72 NM Net income (loss) margin -1.5% 4.2% -570 bps Adjusted net income1 $5.4 $27.3 -80% Adj. net income per dilute
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges Gross margin 27.8% 0.6% 0.3% 27.4% -1.3% Q2 2022 Workers' Bill / Pay Mix Q2 2023 compensation spread Amounts in millions $122 $3 $121 -$4 SG&A Q2 2022 PY Executive Cost Q2 2023 departure benefit reductions 5
Slide 6: Q2 2023 Results by segment
Q2 2023 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $275 $60 $141 % Change -13% -33% -13% Segment profit1 $8 $9 $2 % Change -60% -57% -47% % Margin 3.0% 14.8% 1.6% Change -340 bps -820 bps -100 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • Lower existing c
Slide 7: Current business priorities
Current business priorities ▪ Increase sales efforts through ▪ Decrease time to close new ▪ Expand vertical reach training and redirection of clients with a turn-key RPO, including consumer packaged centralized support teams to ROD offerings, and packaged goods, food and beverage support sales advis
Slide 8: Balance sheet remains strong with zero debt and ample liquidity
Balance sheet remains strong with zero debt and ample liquidity Amounts in millions Liquidity Share repurchases 1 Borrowing availability Cash $365 $344 $50 $72 $61 $252 $52 $224 $50 $63 $34 $294 $293 $202 $17 $161 2020 2021 2022 Q2 2023 2020 2021 2022 YTD 2023 Note: Figures may not sum to consolidat
Slide 9: Outlook
Outlook
Slide 10: Select outlook information for Q3 2023
Select outlook information for Q3 2023 Item Q3 2023 Commentary $484M to $509M The improvement in the year-over-year decline for Q3 compared to Q2 is tied to a less challenging prior Revenue -16% to -12% v. prior year year comparison. 0 to +40 Gross margin Gross margin expansion due to favorable spre
Slide 11: Select outlook information for FY 2023
Select outlook information for FY 2023 Item FY 2023 Commentary 0 to +60 Gross margin Gross margin expansion due to favorable spreads between bill- and pay-rate inflation. bps v. prior year SG&A $492M to $498M Refer to EBITDA adjustments below for additional information on expected expense. • ~$2M in
Slide 12: Appendix
Appendix
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 (loss) 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) 13 weeks ended (in thousands, except for per share data) Jun 25, 2023 Jun 26, 2022 Net income (loss) $ (7,323) $ 24,013 Amortization of intangible assets 1,274 1,495 Amortiza
Slide 15: Reconciliation of GAAP net income (loss) to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Jun 25, 2023 Jun 26, 2022 Net income (loss) $ (7,323) $ 24,013 Income tax expense 1,345 5,129 Interest and other (income) expense, net (578) 110 Depreciation and amortization 6,28
Slide 16: Reconciliation of GAAP SG&A expense to adjusted SG&A expense
3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE (Unaudited) 13 weeks ended (in thousands) Jun 25, 2023 Jun 26, 2022 Selling, general and administrative expense $ 121,282 $ 122,034 Third-party processing fees for hiring tax credits (6) (110) (162) A
Slide 17: Footnotes
Footnotes: 1. Amortization of software as a service assets is reported in selling, general and administrative expense. Note, amortization of software as a service assets was included as an adjustment to net income during transitory periods ending with fiscal 2022 and is only considered an adjustment