Trueblue, Inc. · NYSE:TBI
Trueblue — Investor Presentation (February 2014)
32 slides from Trueblue's investor presentation, Feb 25, 2014
Slide 1: Q1 2014 Investor Presentation: The Leader in Blue-Collar Staffing
Q1 2014 INVESTOR PRESENTATION The Leader in Blue-Collar Staffing
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMEN 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 that reflect management's currer outlook for future periods, including statements regarding fulure fancal pe
Slide 3: Investment highlights
• Specialized leader in blue-collar staffing • Well-positioned in growing staffing market • Significant upside as construction market rebounds • Compelling organic growth strategies • Successful acquisition strategy • Strong operating leverage • Strong capital position supports growth
Slide 4: Full range of specialized blue-collar staffing solutions
TrueBlue offers a full-range of specialized blue-collar staffing solutions to industries that include construction, manufacturing, transportation, aviation, wholesale, waste, hospitality and services, retail, energy, and more.
Slide 5: 2013 Total Revenue by Industry
PLANETECHS $100 SPARTAN STAFFING $210M CLP $250M 2013 Total Revenues = $1.67 Billion* * Service line revenue amounts rounded to the nearest $5 million. CONSTRUCTION 23% ENERGY & INDUSTRIAL 7% MANUFACTURING 21% TRANSPORTATION 13% WHOLESALE TRADE 8% RETAIL 7% SERVICES & OTHER 14% AVIATION 7% 2013 Tota
Slide 6: Company at a glance
25+ $1.7B Years in Business 2013 Revenue 375,000 Connect More Than People to Work Each Year 130,000 Serve More Than Businesses Annually Rounded
Slide 7: What We Do
WHAT WE Recruit and screen workers WORKERS Workers paid based on hours worked and hourly pay rate TRUEBLUE Employer of Record for workers Customer pays for hours worked at agreed-upon bill rate Assign workers tojob assignments CUSTOMERS 1204 er Prenton TRUEBLUE
Slide 8: $100 Billion Overall Staffing Industry
$100 Billion Overall Industry $29B OFFICE IT FINANCE HEALTHCARE OTHER LIGHT INDUSTRIAL BLUE-COLLAR STAFFING Source: Staffing Industry Analysts, TrueBlue estimates
Slide 9: Blue-collar staffing market forecast
Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates. 2013 2017 $36 BILLION $29 BILLION Market Market Forecast
Slide 10: BLS employment projections 2012-2022
Source: U.S. Bureau of Labor Statistics, BLS employment projections 2012-2022. Job openings are due to growth; replacement needs are a result of retirements due to aging workforce.
Slide 11: Why Businesses are Using More Temporary Staffing
Why Businesses are Using More Temporary Staffing: Source: Bureau of Labor Statistics. Measures number of jobs added from help supply services as a percentage of total non-farm payroll. Timeframe measured is 52 months from the start of the recoveries: August 1991, May 2003, and September 2009. Temp J
Slide 12: Construction situation and opportunity
SITUATION • Construction spending on the rebound • Positive momentum for housing starts; construction employment on the rise OPPORTUNITY • Significant construction revenue increase • Multiplier effect on manufacturing, warehousing, logistics, retail, and services
Slide 13: Construction revenue 2013 vs 2006
$450 MILLION $330 MILLION 2013 Construction Revenue* 2006 Construction Revenue * For comparison purposes only; excludes revenue from MDT.
Slide 14: Manufacturing situation and opportunity
SITUATION • U.S. Manufacturing Renaissance • Increased incentives to “reshore” including increasing wages in China, offshore product quality concerns, and logistics costs • Decline in energy costs OPPORTUNITY • Provide flexible, skilled labor force • Closer-to-customer improves service
Slide 15: Transportation situation and opportunity
SITUATION • High driver turnover • New safety regulations create need for more drivers • 100,000 new drivers needed per year, over the next 10 years* OPPORTUNITY • Access to hard-to-find talent • Safety and compliance leadership • Flexible recruiting model • Logistics company partnerships * Source:
Slide 16: Energy situation and opportunity
SITUATION • Growing energy independence • Skilled worker shortages • More than 100,000 new jobs in the solar industry by 2016* OPPORTUNITY • Deliver and manage skilled work force in remote areas • Deep technical knowledge in green industries • Partner with trades schools to fill skilled-worker gap •
Slide 17: TrueBlue revenue growth vs staffing industry growth
Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates 13% CAGR 6% CAGR TrueBlue revenue growth since 2010 Staffing industry growth since 2010
Slide 18: Organic growth, acquisition growth, efficient operations
ACQUISITION GROWTH In addition to organic revenue growth, TrueBlue has a proven track record of successfully acquiring and integrating staffing companies. Continued focus on operational efficiency increases operating leverage. ORGANIC GROWTH EFFICIENT OPERATIONS
Slide 19: Organic Growth
• Develop new blue-collar service lines • Differentiate through industry specialization • Extend reach through geographic expansion ORGANIC GROWTH
Slide 20: Acquisition Growth
CONSIDERATION • ROIC* • Strategic fit • Cultural fit • Limited financial risk • New business capabilities • Talent RESULTS • ROI >cost of capital • $240M invested between 2004 - 2013 • Aggregated acquired companies ~50% of 2013 revenue • Platforms to seamlessly tuck-in future acquisitions * Return o
Slide 21: 2013 acquisitions: MDT and TWC
Acquired February 2013 Acquired October 2013 Purchase Price $48M* or 4 x EBITDA $20M* or 4 x EBITDA Rationale • Increased market share in core business • New talent • Branch consolidation synergies • Increased market share in core business • New talent • Contiguous geographic expansion Integration •
Slide 22: Efficient Operation
• Reduce physical branch dependency • Increase efficiencies through technology • Centralize services EFFICIENT OPERATION
Slide 23: Dedicated recruiting and electronic pay cards
DEDICATED RECRUITING Electronic payment is helping workers be more flexible while eliminating the need to wait in a branch or return for payment. Texting enables us to contact qualified candidates, get a response and fill more jobs. Technology enables us to find and recruit more-- and more talented
Slide 24: Financial Review
Financial Review (04201 Prsraton TRUEBLUE
Slide 25: Revenues and Adjusted EBITDA and margin
$8 $45 $64 $72 $87 3.0% 4.0% 5.0% 6.0% Revenues Adjusted EBITDA* and Margin * EBITDA and Adjusted EBITDA are non-GAAP measures. The Adjusted EBITDA including Large Aviation Project calculation adds back the drop in 2013 EBITDA associated with the wind down of a large customer project in 2013 that wa
Slide 26: 2012 to 2013 EBITDA bridge
* EBITDA and Adjusted EBITDA are non-GAAP measures. See Appendix for EBITDA and Adjusted EBITDA reconciliation to GAAP measures. $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 2012 Actual EBITDA* Large Aviation Project Non-Recurring Acquisition Costs Acquisition Results Core Business 2013 EBITDA* Non-Recurr
Slide 27: Revenue growth including acquisitions
* All calculations based on comparison to same period a year ago. Total revenue includes MDT acquisition in February 2013 and the TWC acquisition in October 2013. Due to the consolidation of acquired branches into existing branches, and merging customers and workforces, organic growth trends cannot
Slide 28: Incremental EBITDA from organic revenue
* This example reflects an approximation of the incremental EBITDA that management believes can be achieved, with strong revenue growth and current gross margin, revenue mix and geographic footprint. See Appendix for EBITDA and Adjusted EBITDA reconciliation to GAAP measures. Incremental Organic Rev
Slide 29: Liquidity
Dollar amounts in millions Q-4 2013 Cash & Investments $ 137 Borrowing Availability $ 74 Total Liquidity Strong liquidity position to fund acquisition strategy $ 211 Debt Low financial leverage balances strong operating leverage $ 30
Slide 30: Investment highlights
• Specialized leader in blue-collar staffing • Well-positioned in growing staffing market • Significant upside as construction market rebounds • Compelling organic growth strategies • Successful acquisition strategy • Strong operating leverage • Strong capital position supports growth
Slide 31: Appendix
Appendix (2044 reste Preseraton TRUEBLUE
Slide 32: Operating Income to EBITDA & Adjusted EBITDA Reconciliation
OPERATING INCOME TO EBITDA & ADJUSTED EBITDA RECONCILIATION 2010 2011 2012 2013 * EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to th