Trueblue, Inc. · NYSE:TBI

Trueblue — Q1 2019 Earnings Presentation

16 slides from Trueblue's earnings presentation, Apr 29, 2019

  1. Slide 1: Q1 2019 Earnings

    Q1 2019 Earnings April 2019 www.TrueBlue.com

  2. Slide 2: Forward-looking statements

    Forward-looking statements

  3. Slide 3: Q1 2019 summary

    Q1 2019 summary Improving revenue trend  Total revenue flat, up from -3% in Q4 2018  Organic revenue -3%, up from -5% in Q4 20181 EPS exceeded company outlook  EPS of $0.21 exceeded high-end of company outlook by $0.10  Outperformance driven by lower workers’ compensation expense2  EPS -5% and

  4. Slide 4: Financial summary

    Financial summary Amounts in millions, except per share data Q1 2019 % Change Revenue $552 Flat (-3% organic1) Gross Profit $148 4% Net Income $8.3 -5% Net Income Per Diluted Share $0.21 -5% Adjusted Net Income1 $10.6 -16% Adj. Net Income Per Diluted Share $0.27 -13% Adjusted EBITDA1 $16.9 -13% Adju

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

    Gross margin and SG&A bridges 0.8% 0.5% 0.7% 26.9% 25.8% Gross Margin Q1 2018 Workers' compensation1 Staffing RPO Q1 2019 Amounts in millions $3 $2 $1 $130 SG&A $126 Q1 2018 TMP PlaneTechs (divested) Core business Q1 2019 (acquired) Figures may not sum due to rounding. 1 $3.9 million of workers' com

  6. Slide 6: Q1 2019 results by segment

    Q1 2019 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $327 $158 $67 % Growth 3% -14% 26% (-1% organic) Segment Profit1 $11 $2 $10 % Growth 20% -59% -12% % Margin 3.5% 1.5% 15.5% Change 50 bps -160 bps -670 bps  Growth constrained by Notes:  Revenue growth

  7. Slide 7: Leading our business into a digital future

    Leading our business into a digital future JobStack TM Industry leading mobile app that connects our Industry leading platform for sourcing, screening workers with jobs and delivering a permanent workforce Before Affinix After  80% worker adoption 30% applicant 80%+ applicant conversion rate1 con

  8. Slide 8: 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% $42 18% $103 $90 $47 12% $26 7% $33 $16 2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019 Liquidity Share Repurchase % of Free Cash Flow2 Amounts in millions Borrowing

  9. Slide 9: TrueBlue

    trueblue

  10. Slide 10: Q2 outlook

    Q2 outlook Amounts in millions, except per share data Revenue Notes • Previously disclosed headwinds start to diminish in Q2: 1 $606 to $623 Total TrueBlue -1% to 1% growth o Revenue headwind of $13 (-2% growth impact) v. $26 in Q1 (-5% growth impact) -3% to 0% organic o Adjusted EBITDA headwind of

  11. Slide 11: Select 2019 outlook information

    Select 2019 outlook information Amounts in millions PeopleScout Clients1 Retail Client (PeopleManagment) -$26 Amazon (PeopleManagment) -5 PlaneTechs (PeopleManagment) -$13 -$13 -12 -2 -4 -5 -3 -$5 Revenue Headwinds -8 -6 -6 -4 Q1-19 (Actual) Q2-19 Q3-19 Q4-19 -$5 -$5 -$4 -1 -$3 -4 -2 -2 -3 -1 -1 -2

  12. Slide 12: Appendix

    Appendix trueblue

  13. 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

  14. Slide 14: 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) Q1 2019 Q1 2018 Q2 2019 Outlook* 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Mar 31, 2019 Apr 1, 2018 Jun 30, 2019 Net income $ 8,276 $ 8

  15. Slide 15: Reconciliation of GAAP revenue to organic revenue and free cash flows

    3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Total company PeopleScout Q1 2019 Q1 2018 Q1 2019 Q1 2018 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands) Mar 31, 2019 Apr 1, 2018 Mar 31, 2019 Apr 1, 2018 Revenue from services $ 552,352 $ 554,388 $ 67,

  16. Slide 16: Footnotes

    Footnotes: 1. Gain on the divestiture of our PlaneTechs business sold mid-March 2018. 2. Amortization of intangible assets of acquired businesses. 3. Acquisition/integration costs and acquired entity revenue relate to the acquisition of TMP Holdings LTD completed on June 12, 2018. 4. Other adjustmen

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