Slide 1: Q3 2023 Earnings
| trueblue THE PEOPLE COMPANY™ Q3 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, expectations regarding stabilization in deman
Slide 3: Q3 2023 Overview
Q3 2023 Overview Total revenue -18% ▪ Clients continued to be cost conscious and selective in the roles they chose to fill ▪ Signs of potential stabilization in certain parts of our business as we exited the quarter Net loss was $0 million v. net income of $21 million in Q3 2022 ▪ Revenue decline wa
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2023 Q3 2022 Change Revenue $473 $576 -18% Net income (loss) $0.0 $20.7 N/M Net income (loss) per diluted share $0.00 $0.63 N/M Net income (loss) margin 0.0% 3.6% -360 bps Adjusted net income1,2 $4.9 $24.3 -80% Adj. net income per dilut
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges Gross margin 27.1% 0.3% 26.2% -0.3% -0.9% Q3 2022 Workers' Bill / Pay Mix Q3 2023 compensation spread Amounts in millions $124 $3 $121 SG&A -$6 Adjusted EBITDA Q3 2022 exclusions1 Core business Q3 2023 1 5 Represents the year-over-year change in Adjusted EBITDA exclusio
Slide 6: Q3 2023 Results by segment
Q3 2023 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $283 $53 $137 % Change -15% -32% -16% Segment profit1 $10 $6 $2 % Change -66% -41% -52% % Margin 3.4% 11.8% 1.6% Change -520 bps -200 bps -110 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • Lower client vo
Slide 7: Current business priorities in 2023
Current business priorities in 2023 ▪ 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 recruiter-on-demand offerings, goods, food and beverage support
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 2 Borrowing availability Cash Share Repurchases Buyback ratio $365 6% 6% $344 5% $50 $72 2% $224 $61 $52 $63 $170 $294 $293 $47 $34 $161 $17 $123 2020 2021 2022 Q3 2023 2020 2021 2022 YT
Slide 9: Outlook
Outlook
Slide 10: Select outlook information
Select outlook information Our fiscal fourth quarter of 2023 will include a 14th week. The outlook information provided is on a comparable 13-week basis. The extra week is expected to add incremental revenue of $17M to $22M and a slight headwind on profit due to low seasonal volume. Q4 2023 Item Com
Slide 11: Appendix
Appendix
Slide 12: 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 13: 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) Sep 24, 2023 Sep 25, 2022 Net income (loss) $ (10) $ 20,696 Amortization of intangible assets 1,276 1,484 Amortizatio
Slide 14: 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) Sep 24, 2023 Sep 25, 2022 Net income (loss) $ (10) $ 20,696 Income tax expense (benefit) (2,326) 4,092 Interest and other (income) expense, net (390) (703) Depreciation and amorti
Slide 15: 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) Sep 24, 2023 Sep 25, 2022 Selling, general and administrative expense $ 120,715 $ 124,351 Third-party processing fees for hiring tax credits (7) (90) (162) Am
Slide 16: 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