Trueblue, Inc. · NYSE:TBI
Trueblue — Q3 2018 Earnings Presentation
15 slides from Trueblue's earnings presentation, Nov 5, 2018
Slide 1: November 5, 2018 www.TrueBlue.com
November 5, 2018 www.TrueBlue.com
Slide 2: Forward-looking statements
Forward-looking statements
Slide 3: Q3 2018 summary
Q3 2018 summary Another quarter of revenue growth Total revenue +3% v. +1% in Q2 Organic revenue1,2 +1% v. flat in Q2 PeopleReady, the largest segment, +3% v. +2% in Q2 PeopleManagement -8% v. -7% in Q2 PeopleScout +44% v. +25% in Q2 Strong EPS results EPS +20% and adjusted EPS2 +32% P
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2018 % Change Revenue $680 +3% Net Income $24.4 +15% Net Income Per Diluted Share $0.61 +20% Adjusted Net Income1 $31.8 +28% Adj. Net Income Per Diluted Share $0.79 +32% Adjusted EBITDA $43.4 +7% Adjusted EBITDA Margin 6.4% +20 bps Or
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges Gross Margin 0.8% 0.3% 27.1% 26.0% Q3 2017 RPO Staffing1 Q3 2018 Amounts in millions SG&A $145 $3 $6 $132 $4 Q3 2017 Adjusted EBITDA TMP Core business Q3 2018 exclusions2 1 Margin improvement primarily due to improvements in workers’ compensation expense. See 10-Q for a
Slide 6: Q3-18 segment update
Q3-18 segment update Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $429 $181 $71 % Growth +3% -8% +44% (Flat ex-Amazon and PlaneTechs) (+13% organic) Segment Profit1 $31.2 $6.2 $12.5 % Growth 9% -11% +21% % Margin 7.3% 3.4% 17.7% % Change +40 bps -10 bps -330 bps Notes: Reve
Slide 7: Segment strategy highlights
Segment strategy highlights JobStackTM creating Attractive on-premise Global RPO market favorable differentiation solution experiencing strong growth with customers and Perfect fit for larger associates clients with longer- Leverage TMP duration / strategic need acquisition to compete 30
Slide 8: Lower debt and ample liquidity
Lower debt and ample liquidity $246 $30 Amounts in millions $138 Total Debt $119 $108 $216 $35 $29 Net Debt Cash $35 $103 $90 $73 2015 2016 2017 Q3-18 Amounts in millions $220 $171 $35 Liquidity $146 Borrowing Availability Cash $35 $107 $29 $30 $185 $136 $117 $77 2015 2016 2017 Q3-18 Debt to Total 3
Slide 9: Outlook
Slide 10: Q4 2018 outlook
Q4 2018 outlook Amounts in millions, except per share data Revenue Outlook Growth Notes • Divested revenue (PlaneTechs) and acquired revenue (TMP) roughly off-set Total 1 $642 to $659 -4% to -2% • -3% headwind from energy business peak in Q4-17 • -4% headwind from loss of Amazon Canadian business Pe
Slide 11: 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 $24M in Q4-18 (11% for PeopleManagement and 4% for total TBI) Memo: Amazon Historical Q4-17 Q1-18 Q2-1
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 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) Q3 2018 Q3 2017 Q4 2018 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Sep 30, 2018 Oct 1, 2017 Dec 30, 2018 Net income $ 24,380 $
Slide 15: Reconciliation of U.S. GAAP revenue to organic revenue
3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Q3 2018 Q3 2017 13 Weeks Ended 13 Weeks Ended (in thousands) Sep 30, 2018 Oct 1, 2017 Revenue from services $ 680,371 $ 660,780 Acquired entity revenue (15,032) — Organic revenue $ 665,339 $ 660,780 Footnotes: 1. Adjustment to the