Slide 1: Q3 2015 Earnings Results
OCT. 21, 2015 Q3 2015 Earnings Results
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: Q3 2015 Highlights and Trends
Q3 2015 HIGHLIGHTS AND TRENDS • Strong revenue results – exceeded expectation o 8% growth (all organic) o Significant step-up from Q1 and Q2 2015 growth rates o Widespread improvement including most service lines and geographies o Improving trends across most industries including construction o Cont
Slide 4: Financial Summary
Q3 2015 Financial Summary 4 Amounts in millions, except for earnings per share $684 +8% $44 +5% -20bps $0.54 +2% • $2 million of new customer-related costs in Q3 2015 related to future revenue • Workers’ compensation 20 bps higher (Q3 2014 reserve benefit) • Excluding the items above: o Adjusted EBI
Slide 5: Revenue Trends & Gross Margin / SG&A Bridges
5 REVENUE TRENDS & GROSS MARGIN / SG&A BRIDGES 0% 1% 8% Q1 2015 Q2 2015 Q3 2015 Year-over-Year Organic Revenue Growth 25.2% 24.7% 0.3% 0.2% Q3 2014 Revenue Mix / Other* Workers’ Compensation** Q3 2015 $120 $125 $2 $2 $5 Q3 2014 Q3 2014 Integration Costs New Customer- Related Costs Variable and Other
Slide 6: Staffing Services Segment
Q3 2015 – Staffing Services Segment 6 Amounts in millions, except for earnings per share $657 +8% $50 +10% +10bps • Broad-based growth across most geographies, service lines, and industries o Improving results in construction o Green energy business contributed to growth • Excluding new customer-rel
Slide 7: Managed Services Segment
Q3 2015 – Managed Services Segment 7 Amounts in millions, except for earnings per share $27 +10% $3 -15% -340bps • Revenue growth 14% on a constant currency basis • Revenue exceeded expectations due to new RPO customers • EBITDA margin impacted by currency headwinds (~100bps) and new RPO customer im
Slide 8: Debt and Liquidity Highlights
0% 8% 30% 18% 2012 2013 2014 Q3 2015 -$130 -$105 $180 $91 No Debt $32 $202 $114 2012 2013 2014 Q3 2015 Cash Net Debt * Total Debt Liquidity Debt to Total Capital Amounts in millions Amounts in millions 8 * Total debt less cash and marketable securities. Note: Balances as of fiscal period end. Figure
Slide 9: Expectations
Expectations
Slide 10: Q4 2015 Expectations
Expectation Commentary Total Revenue $738M to $753M 7% to 9% • Mid-point expectation of 8% growth; all organic Staffing Services Revenue 7% to 9% • Continued trend of high single-digit growth Managed Services Revenue 0% to 15% • Mid-point expectation of 7% growth; 9% in constant currency • Smaller r
Slide 11: Non-GAAP Financial Measures Definitions
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisi