Slide 1: Q1 2023 Earnings
b trueblue Q1 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, and expected growth from our digital investme
Slide 3: Q1 2023 Overview
Q1 2023 Overview Total revenue -16% – in line with company outlook ▪ PeopleReady sequential revenue trends remained consistent with historical patterns ▪ PeopleScout and PeopleManagement demand slowed Net loss was $4 million v. net income of $11 million in Q1 2022 ▪ Revenue decline drove the drop in
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q1 2023 Q1 2022 Change Revenue $465 $552 -16% Net income (loss) -$4.3 $10.5 NM Net income (loss) per diluted share -$0.13 $0.30 NM Net income (loss) margin -0.9% 1.9% -280 bps Adjusted net income (loss)2 -$1.9 $15.1 NM Adj. net income (los
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges Gross margin Amounts in millions SG&A Adjusted EBITDA exclusions1 1 Represents the year-over-year change in Adjusted EBITDA exclusions impacting SG&A. Refer to the adjusted EBITDA reconciliation in the appendix to this presentation for more information. 5
Slide 6: Q1 2023 Results by segment
Q1 2023 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $253 $69 $143 % Change -17% -15% -13% Segment profit1 $1 $9 $0 % Change -95% -19% NM % Margin 0.3% 12.8% -0.1% Change -500 bps -60 bps -190 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • -16% from prior ye
Slide 7: Strategy highlights and priorities
Strategy highlights and priorities ▪ Digitalize our business model ▪ Augment sales team to enable ▪ Leverage sales resource to gain market share from specialization and gain market investments to expand into smaller, less capitalized share in high growth sectors under-penetrated geographic competito
Slide 8: Balance sheet remains strong
Balance sheet remains strong Liquidity Cash net of debt Amounts in millions Amounts in millions Total debt to capital1 Share repurchases Amounts in millions Note: Figures may not sum to consolidated totals due to rounding. Balances as of fiscal period end. 1 Total Debt to Capital calculated as total
Slide 9: Outlook
Outlook
Slide 10: Select outlook information for Q2 2023
Select outlook information for Q2 2023 Item Q2 2023 Commentary PeopleReady benefited from a high volume of retail projects and above average base business results Revenue $487M to $512M during the first half of 2022, which are not expected to fully repeat. The impact to total TBI growth is -14% to -
Slide 11: Select outlook information for FY 2023
Select outlook information for FY 2023 Item FY 2023 Commentary -20 to +40 Gross margin Gross margin expected to hold relatively steady. bps v. prior year SG&A $495M to $501M Refer to EBITDA adjustments for additional information on expected expense. EBITDA • ~$3M in PeopleReady technology upgrade co
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 GAAP net income (loss) to adjusted net income (loss)
1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE (Unaudited) 13 weeks ended (in thousands, except for per share data) Mar 26, 2023 Mar 27, 2022 Net income (loss) $ (4,289) $ 10,519 Amortization of intangible assets 1,270
Slide 15: 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) Mar 26, 2023 Mar 27, 2022 Net income (loss) $ (4,289) $ 10,519 Income tax expense (benefit) (640) 1,976 Interest expense and other (income), net (1,014) (505) Depreciation and amo
Slide 16: 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) Mar 26, 2023 Mar 27, 2022 Selling, general and administrative expense $ 122,645 $ 120,568 Third-party processing fees for hiring tax credits (6) (120) (162) A
Slide 17: 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