Trueblue, Inc. · NYSE:TBI
Trueblue — Shareholder Meeting (May 2008)
33 slides from Trueblue's shareholder meeting presentation, May 14, 2008
Slide 1: The Leader in Blue-Collar Staffing
THE LEADER IN BLUE-COLLAR STAFFING
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note About Forward-Looking Statements: 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 within the meaning of the federal securities laws. Our actual
Slide 3: 2008 Assumptions
2008 Assumptions 2008 Estimate* Branches in operation as of May 14, 2008 944 New branches left to open in 2008 0 Revenue growth from acquisitions 17% Revenue loss from closed branches (2 - 3%) Reduction in SG&A from branch closures $8 M Additional SG&A on incremental same branch revenue 10% Gross Ma
Slide 4: Revenue – Year Over Year Growth
Revenue – Year Over Year Growth 12% 9% 5% 5% 9.5% 4% 2.5% 2004 2005 2006 2007 Organic Growth Acquisition Growth 17% 18.5% 9% 2.5% Rounded to the nearest .5% 4 TrueBlue™ | 2008 Annual Meeting
Slide 5: Profitability: Diluted EPS
Profitability Diluted EPS $ $0.75 $1.18 $1.45 $1.44 2004 2005 2006 2007 5 TrueBlue™ | 2008 Annual Meeting
Slide 6: Return on Equity
Return on Equity 21% 23% 22% 21% 2004 2005 2006 2007 6 TrueBlue™ | 2008 Annual Meeting
Slide 7: Disciplined Management: Cost Containment in Tough Operating Environment
Disciplined Management Cost Containment in Tough Operating Environment Branch openings reduced 50% in 2007 Closed 58 branches in 2007, eliminating $8 million of expense Further reduced branch openings by 90% in 2008 Achieved 53% reduction in accident rates since 2003 7 TrueBlue™ | 2008 Annual Meetin
Slide 8: Increasing Shareholder Value
Increasing Shareholder Value TrueBlue™ | 2008 Annual Meeting 8 Continued Diversification $100 Million Invested in Strategic Acquisitions in 2007 and 2008 Share Repurchase $239 Million Returned to Shareholders through Share Repurchases since 2006
Slide 9: 53% Reduction in Accident Rate since 2003
53% Reduction in Accident Rate since 2003 9 TrueBlue™ | 2008 Annual Meeting 18% 28% 36% 46% 53% 2003 2004 2005 2006 2007
Slide 10: Use of Cash
Use of Cash Cash Acquisitions Stock Buyback Return on Investment Return on Investment Decision (Driven by ROI) TrueBlue™ | 2008 Annual Meeting
Slide 11: Stock Buyback Activity
Stock Buyback Activity Purchases Shares Total Cost 2006 FY 4.2 million $89 million 2007 FY 7.6 million $150 million Total 11.8 million $239 million Remaining Authorization* $38 million (*) As of Dec. 28, 2007 11 TrueBlue™ | 2008 Annual Meeting
Slide 12: Making Strategic Acquisitions
Making Strategic Acquisitions Qualitative Factors Quantitative Factors Other Factors Management Comparable Culture Profitable Operations Strategic Fit Blue Collar Service Leader Growth & Diversification Return on Investment Financial decisions based on ROI Acquisition ROI must exceed TrueBlue’s ROE
Slide 13: Recent Acquisition Activity
Recent Acquisition Activity Acquisition Date Investment Skilled Services May ‘07 $26 million PlaneTechs Dec. ‘07 $51 million TLC Drivers Feb. ‘08 $5 million Personnel Management Apr. ‘08 $18 million Total Invested $100 million 13 TrueBlue™ | 2008 Annual Meeting
Slide 14: Blue-Collar Specialty: Skilled Construction
Blue-Collar Specialty Skilled construction Geography Served Southeast/Southwest (17 branches) Market Dynamics $1.6 billion market Long-term growth prospects Integration Tuck-in to CLP operations Strategic Rationale Expanded branch network Profitable expansion into key new markets Management depth $2
Slide 15: Blue-Collar Specialty: Aviation Mechanics
Blue-Collar Specialty Aviation mechanics Geography Served Nationwide (1 central location) Market Dynamics $1 billion market Rapidly growing Counter-cyclical Integration Platform Strategic Rationale High demand niche Unique recruiting model Growth vehicle for additional mechanic services Diversificat
Slide 16: Blue-Collar Specialty: CDL Drivers
Blue-Collar Specialty CDL Drivers Geography Served West Coast (8 branches) Market Dynamics $1 billion market Exciting market & demographic trends Integration Platform Strategic Rationale High demand niche Systems & management Leverage TrueBlue branch network for expansion Diversification Expected Re
Slide 17: Blue-Collar Specialty: Manufacturing and Logistics
Blue-Collar Specialty Manufacturing and logistics Geography Served Midwest (43 branches) Market Dynamics $9 billion market 6-8% growth through 2014 Integration Spartan Staffing integration Strategic Rationale Critical mass Systems & management Follow-on acquisitions Diversification Expected Return o
Slide 18: Acquisitions Create Shareholder Value
TrueBlue™ | 2008 Annual Meeting 18 Rounded to nearest five percent. Today’s business mix incorporates completed acquisitions for a full year. Acquisitions Create Shareholder Value Profitable entry to new blue-collar markets Management depth Best practice sharing Attractive investment returns Diversi
Slide 19: Sales by Industry
TrueBlue™ | 2008 Annual Meeting 19 Rounded to nearest five percent. Today’s business mix incorporates completed acquisitions for a full year. Sales by Industry Sales by Industry 2006 Today Construction & Landscaping 40% 30% Manufacturing 20% 20% Transportation & Aviation 10% 20% All Other Industries
Slide 20: Decline in Residential Construction
0 500 1,000 1,500 2,000 2,500 2001 2002 2003 2004 2005 2006 2007 2008 Residential Building Permits (2001-2008) Source: U.S. Census Bureau, in thousands. Decline in Residential Construction 60% Drop in Two Years TrueBlue™ | 2008 Annual Meeting
Slide 21: Investment in Sales Training
Investment in Sales Training TrueBlue™ | 2008 Annual Meeting 21 DMs Trained Sales Coaches District Level Sales Planning ASMs Certified Sales Trainers Branch Manager Training Completed Q2 2007 Completed Q3 2007 Completed Q2 2008 Planned Q4 2008
Slide 22: One Company, Multiple Brands
One Company, Multiple Brands 22 TrueBlue™ | 2008 Annual Meeting General Labor Light Industrial Skilled Trades Group
Slide 23: 2007 Revenues - $1.4 Billion
2007 Revenues - $1.4 Billion TrueBlue™ | 2008 Annual Meeting 23 GENERAL LABOR LIGHT INDUSTRIAL SKILLED TRADES GROUP 80% 5% 15% 2007 rounded to the nearest billion; percentages rounded to the nearest 5%.
Slide 24: TrueBlue: Present & Future
2007 $1.4B(1) General Labor 80% Light Industrial 5% Skilled Trades 15% General Labor 60% Skilled Trades 25% Light Industrial 15% Strategy $3B(2) TrueBlue: Present & Future TrueBlue™ | 2008 Annual Meeting 24 (1) Rounded to nearest billion. (2) Management expects future net income as a percentage of r
Slide 25: Temporary Staffing $100 Billion
Temporary Staffing TrueBlue™ | 2008 Annual Meeting 25 $100 billion Staffing Industry Analysts 2007 estimate, rounded Industrial/blue collar office IT finance healthcare other
Slide 26: Industrial/Blue-Collar Staffing
other finance healthcare office IT Industrial / blue collar Industrial/Blue-collar Staffing TrueBlue™ | 2008 Annual Meeting 26 other finance healthcare office IT Industrial / blue collar Staffing Industry Analysts 2007 estimate, rounded $25 billion construction trucking production packers + assemble
Slide 27: General Labor Staffing
other finance healthcare office IT Industrial / blue collar General Labor Staffing $5 billion $1.15 billion Staffing Industry Analysts and company estimates (rounded); revenue reflects 2007 results plus annualized impact of related acquisitions. TrueBlue™ | 2008 Annual Meeting
Slide 28: Light Industrial Group
other finance healthcare office IT Industrial / blue collar Light Industrial Group $9 billion $175 million Staffing Industry Analysts and company estimates (rounded); revenue reflects 2007 results plus annualized impact of related acquisitions. TrueBlue™ | 2008 Annual Meeting
Slide 29: Skilled Trades Group
other finance healthcare office IT Industrial / blue collar Skilled Trades Group $3 billion $350 million Staffing Industry Analysts and company estimates (rounded); revenue reflects 2007 results plus annualized impact of related acquisitions. TrueBlue™ | 2008 Annual Meeting
Slide 30: Methods of Growth
Methods of Growth TrueBlue™ | 2008 Annual Meeting 30 Groups Key methods of growth General Labor Same Branch Light Industrial Same Branch Acquisition Skilled Trades Same Branch Acquisition New Branch
Slide 31: Operating Leverage Drives Profits
(a) Earnings per share sensitivity analysis based on 900 branches, 31.0% gross profit margins, management’s estimates of fixed and variable expenses, regional and back office overhead and related assumptions, at varying levels of per office revenues. 2004 $1.3M Operating Leverage Drives Profits True
Slide 32: Investment Highlights
Investment Highlights Service leader in blue-collar staffing Growth platforms in place for five business lines Strong operating leverage Industry-leading return on equity Significant share buyback program 32 TrueBlue™ | 2008 Annual Meeting
Slide 33: Q & A
Q & A 33 TrueBlue™ | 2008 Annual Meeting