Slide 1: Q3 2022 Earnings
Q3 2022 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: Q3 2022 Overview
Q3 2022 Overview Total revenue flat ▪ PeopleScout demand remained strong given the high number of job openings ▪ PeopleReady demand softened, partially offset by improved worker supply ▪ PeopleManagement demand held steady Net income was $21 million v. $19 million in Q3 2021 ▪ Net income margin +40
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2022 Q3 2021 Change Revenue $576 $577 0% Net income $20.7 $18.6 +11% Net income per diluted share $0.63 $0.53 +19% Net income margin 3.6% 3.2% +40 bps Adjusted net income¹ $24.8 $20.8 +19% Adj. net income per diluted share $0.75 $0.59 +
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 1.0% 27.1% 1.1% 25.4% Gross margin -0.4% Q3 2021 Workers' Bill / Pay Business Q3 2022 compensation spread mix Amounts in millions $119 $2 $3 $124 SG&A Q3 2021 Adjusted EBITDA Core business Q3 2022 exclusions1 www.TrueBlue.c 1 $2 million represents the year-over-year cha
Slide 6: Q3 2022 Results by segment
Q3 2022 Results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $335 $164 $77 % Change -4% +4% +10% Segment profit1 $29 $4 $11 % Change +16% +89% +10% % Margin 8.6% 2.7% 13.8% Change +150 bps +120 bps -10 bps Notes: ■ Revenue -4% ■ Revenue +4% ■ Revenue and segment •
Slide 7: Strategy highlights
Strategy highlights ▪ Digitalize our business ▪ Continue momentum on ▪ Focus sales and model to gain market new customer wins marketing efforts to share from smaller, less through strong execution capitalize on industry capitalized competitors of sales initiatives trend towards outsourcing and reduc
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 www.TrueBlue.c Note: Figures may not sum to consolidated totals due to rounding. Balances as of fiscal period end. 1om Total Debt to Capital ca
Slide 9: Outlook
Outlook | trueblue THE PEOPLE COMPANY?
Slide 10: Select outlook information
Select outlook information Item Q4 2022 Commentary • PeopleReady benefited from a high volume of retail projects and above average base business results during Q4 2021 and Q1 2022, which are not expected to fully repeat. Revenue $550M to $575M ◦ The impact to total TBI growth is roughly -9% in Q4 20
Slide 11: Appendix
Appendix | trueblue THE PEOPLE COMPANY?
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 to adjusted net income
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) 13 weeks ended (in thousands, except for per share data) Sep 25, 2022 Sep 26, 2021 Net income $ 20,696 $ 18,642 Amortization of intangible assets 1,484 1,506 Amortization of softwar
Slide 14: Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Sep 25, 2022 Sep 26, 2021 Net income $ 20,696 $ 18,642 Income tax expense 4,092 3,267 Interest expense and other (income), net (703) (581) Depreciation and amortization 7,483 6,426 EBITD
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 25, 2022 Sep 26, 2021 Selling, general and administrative expense $ 124,351 $ 118,748 Third-party processing fees for hiring tax credits (6) (162) (419) A
Slide 16: Footnotes
Footnotes: (1) Amortization of software as a service assets is reported in selling, general and administrative expense. (2) Accelerated depreciation for the existing systems being replaced by the upgraded PeopleReady technology platform. (3) Costs associated with upgrading legacy PeopleReady technol