Trueblue, Inc. · NYSE:TBI

Trueblue — Q4 2018 Earnings Presentation

18 slides from Trueblue's earnings presentation, Feb 7, 2019

  1. Slide 1: Q4 2018 Earnings

    Q4 2018 Earnings February 2019 www.TrueBlue.com

  2. Slide 2: Forward-looking statements

    Forward-looking statements

  3. Slide 3: Results and strategy overview

    Results and strategy overview FY 2018 Revenue progress Strong EPS results Strategic progress &  Total revenue flat, or +1% organic  EPS +22% and adjusted EPS +31%1 capital return excluding Amazon and PlaneTechs1  Third consecutive year of gross  JobStackTM – 3 million dispatches in 2018  People

  4. Slide 4: Financial summary

    Financial summary Amounts in millions, except per share data FY 2018 % Change Q4 2018 % Change Flat -3% Revenue $2,499 (1% organic ex-Amazon $650 (Flat organic ex-Amazon and PlaneTechs) and PlaneTechs) Net Income $65.8 19% $14.9 -9% Net Income Per Diluted Share $1.63 22% $0.37 -8% Adjusted Net Incom

  5. Slide 5: Gross margin and SG&A bridges

    Gross margin and SG&A bridges 1.2% 0.2% 26.5% 25.1% Gross Margin Q4 2017 Staffing1 RPO Q4 2018 Amounts in millions $5 $5 $4 $145 $1 SG&A $133 Q4 2017 Adjusted EBITDA TMP PlaneTechs Core business Q4 2018 exclusions 2 (acquired) (divested) Figures may not sum due to rounding. 1 Margin improvement prim

  6. Slide 6: Q4 2018 results by segment

    Q4 2018 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $399 $184 $67 % Growth 2% -18% 31% (-4% ex-Amazon and PlaneTechs) (6% organic) Segment Profit1 $22 $5 $12 % Growth 4% -40% 14% % Margin 5.5% 2.8% 17.5% Change 10 bps -100 bps -280 bps Notes:  Revenue hea

  7. Slide 7: Segment strategy highlights

    Segment strategy highlights  15%+ potential operating  Attractive on-site solution  Compelling value margin on incremental proposition with  Perfect fit for larger attractive margins revenue clients with longer- duration / strategic need  Global RPO market  JobStack creating for contingent wor

  8. Slide 8: Transforming our business for a digital future

    Transforming our business for a digital future JobStack TM Mobile app that algorithmically connects workers Industry leading platform for sourcing, screening with jobs and delivering a permanent workforce  Driving value via higher candidate  Competitive satisfaction, faster conversion differentiat

  9. Slide 9: Strong balance sheet and return of capital

    Strong balance sheet and return of capital Total Debt Debt to Total Capital1 Amounts in millions Net Debt Cash $138 $119 $35 $29 $80 21% 18% $103 $90 $47 12% $33 2016 2017 2018 2016 2017 2018 Liquidity Share Repurchase % of Free Cash Flow2 Amounts in millions Borrowing Availability Cash $260 $47 $17

  10. Slide 10: Outlook

  11. Slide 11: 2019 outlook

    2019 outlook Amounts in millions, except per share data Q1 2019 Outlook Adj. EBITDA / Key Messages Revenue Segment Profit • Increased demand for PeopleReady offset by other revenue and pricing headwinds o PeopleReady – accelerating demand; strength in small business revenue (65% of revenue) $552 to

  12. Slide 12: Select 2019 outlook information

    Select 2019 outlook information Amounts in millions  Retail headwind due to loss of Amazon Canadian business effective Sept. 1, 2018 and volume / price reduction at another retail client  PlaneTechs headwind due to divestiture in mid-March 2018 (no headwind after Q1 2019) YoY Revenue Headwind YoY

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: 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

  15. Slide 15: Reconciliation of 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) Q4 2018 Q4 2017 Q1 2019 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Dec 30, 2018 Dec 31, 2017 Mar 31, 2019 Net income $ 14,887 $

  16. Slide 16: Reconciliation of GAAP net income to EBITDA and adjusted EBITDA

    2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) Q4 2018 Q4 2017 Q1 2019 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands) Dec 30, 2018 Dec 31, 2017 Mar 31, 2019 Net income $ 14,887 $ 16,427 $ 2,700 — $ 4,400 Income tax expense 2,839 7,185 400 —

  17. Slide 17: Reconciliation of GAAP revenue to organic revenue

    3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Total Company Q4 2018 Q4 2017 2018 2017 13 Weeks Ended 13 Weeks Ended 52 Weeks Ended 52 Weeks Ended (in thousands) Dec 30, 2018 Dec 31, 2017 Dec 30, 2018 Dec 31, 2017 Revenue from services $ 650,147 $ 669,625 $ 2,499,207 $ 2,508,7

  18. Slide 18: Reconciliation of operating cash flow to free cash flows

    4. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOWS (Unaudited) 2018 2017 2016 2015 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended 52 Weeks Ended (in thousands) Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Dec 25, 2015 Net cash provided by operating activities $ 125,692 $ 100,13

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