Slide 1: 2011 Q2 TrueBlue Investor Presentation
[ 2011 Q2 TRUE BLUE’ Investor Presentation
Slide 2: Cautionary Note About Forward-Looking Statements
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 current outlook for future periods, including statements regarding future financial performance. These forw
Slide 3: TrueBlue Investment Highlights
TrueBlue Investment Highlights 3 Specialized approach in serving the market Compelling growth potential for staffing industry Unique industry-related drivers for TrueBlue More opportunities to serve the staffing market Multiple growth strategies Strong operating leverage Solid balance
Slide 4: A Leading Provider of Blue-Collar Staffing
Every day, we use our specialized approach to the market to find new opportunities to better serve customers and workers at all skill levels. A Leading Provider of Blue-Collar Staffing 4
Slide 5: Blue-Collar Specialties
General labor, on demand Specialized skills for manufacturing & logistics Skilled trades for energy, industrial, & construction projects Aviation mechanics & technicians Truck drivers Blue-Collar Specialties 5
Slide 6: The Leading Provider of Blue-Collar Staffing
The Leading Provider of Blue-Collar Staffing 2010 Revenues = $1.15 Billion 2010 brand revenue rounded to the nearest $5 million. 6
Slide 7: Sales by Industry
7 Sales by Industry 2010 2006 Construction 22% 37% Manufacturing 20% 17% Transportation 12% 9% Wholesale Trade 9% 10% Retail 7% 8% Services & Other 16% 19% Aviation 14% 0%
Slide 8: TrueBlue Recognized as a Credible Industry Leader
“Best practices by DHS/ICE Partner” “Forbes Most Trustworthy Companies” “VIP program to promote employee fairness and safety” “Platinum 400” “Award of Excellence” “Hot Growth Company” “National Universal Agreement to Mediate” 8 TrueBlue Recognized as a Credible Industry Leader
Slide 9: Blue-Collar Staffing: A Sizable Industry
Other Finance Healthcare Office IT 9 Blue-Collar Staffing: A Sizable Industry Staffing Industry Analysts 2010 forecast, rounded $20 Billion Industrial/ Blue-Collar $75 Billion
Slide 10: Staffing Industry and TrueBlue-Specific Growth Drivers
Attractive Drivers for Staffing Industry Economic volatility & uncertainty Greater need for flexibility & agility Increased government regulation Unique Industry Drivers Construction rebound Growing need & shortage of truck drivers Manufacturing growth expected to continue Staffing Industry and True
Slide 11: Blue-Collar Staffing – Strong Future Growth
$20B 2015 Market Forecast $30B Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates 2010 Market Blue-Collar Staffing – Strong Future Growth 11
Slide 12: Staffing Industry Still in Early Innings of Growth
Staffing Industry Still in Early Innings of Growth Staffing Industry Only at the Trough of the Last Cycle Source: Bureau of Labor Statistics. Temporary penetration rate defined as temporary help employment as a percentage of total U.S. non-farm employment. Seasonally adjusted. Yellow shaded areas re
Slide 13: Construction Poised to Rebound
Construction Poised to Rebound Construction Employment As a percentage of total non-farm employment 13 5.1% Historical Average (1950 – 2010) “Construction is projected to be the fastest growing goods-producing industry over the next decade as employment returns to 5.1% of the workforce. This increas
Slide 14: Potential Growing Need for Truck Drivers
Potential Growing Need for Truck Drivers US Transportation Employment 000s Chart Source: Bureau of Labor Statistics. Seasonally adjusted. 14 “We're going to need 1 million drivers in the next 15 years just to deal with replacing retirees and the normal growth of freight.” Rosalyn Wilson, Council of
Slide 15: Encouraging Prospects for Manufacturing Growth
Encouraging Prospects for Manufacturing Growth Chart Source: Federal Reserve Bank of St. Louis. A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent that it is generally declining. 15 “Within the next five years, the U.S. is expected to (ha
Slide 16: More Opportunities to Serve the Market
$1.35B Revenue Labor Ready (89%) CLP (11%) $5 Billion Market 2006 $1.15B Revenue Labor Ready (63%) CLP (9%) Spartan (11%) PlaneTechs (13%) Centerline (4%) 2010 $13 Billion Market 16 More Opportunities to Serve the Market Percentages in parentheses represent the mix of total company revenue by brand
Slide 17: Market Share Opportunities
$4 Billion (20%) $7 Billion (1%) $1 Billion (10%) $800 Million (20%) $500 Million (35%) Market Share Opportunities 1 Staffing Industry Analysts 2010 forecast, TrueBlue estimates Market Size & (Market Share)1 17
Slide 18: Multiple Growth Strategies
18 Multiple Growth Strategies Focus HowWhy Organic Growth in Existing Geographies Geographic Expansion Acquisitions +++ + + Operating Leverage Market Share Market Share & Scale • Vertical Market Specialization • Brand Leadership • Sales Tools and Training • On-site Management • Multi-Branded Locatio
Slide 19: Strong Operating Leverage from Organic Revenue
19 Strong Operating Leverage from Organic Revenue Incremental Revenue $100 Gross Profit Generated $25- $26 Operating Expense Associated with Incremental Revenue $(8) – (11) Incremental EBITDA $15 - 18 Organic growth from existing geographies = 15% - 18% incremental EBITDA margins* * Reflects an appr
Slide 20: Geographic Expansion Opportunities
Geographic Expansion Opportunities Existing markets KEY 20
Slide 21: Successful Acquisition Record
Successful Acquisition Record Acquisitions Results How We Vet Acquisitions Does it fit our strategy? Does it exceed our return on investment requirements? Does it fit our culture and operational structure? Does it bring unnecessary financial or legal risks? 21
Slide 22: Financial Review
( Financial Review TRUE BLUE
Slide 23: Recent Revenue Trends
Recent Revenue Trends 23 Q4 2010 Revenue growth excludes 14th week for comparative purposes
Slide 24: Recent Financial Results
24 Recent Financial Results In millions Q-1 2011 Q-1 2010 Growth % Revenue $274 $240 14% Gross profit $70 $61 15% % of Revenue 25.5% 25.5% SG&A expense $65 $61 6% % of Revenue 23.8% 25.5% EBITDA* $5 $0 n.m. % of Revenue 1.8% 0% Net income (loss) $1 $-2 134% % of Revenue 0.3% -0.9% Earnings (loss) pe
Slide 25: Solid Balance Sheet
25 Solid Balance Sheet In millions Q-1 2011 Q-4 2010 Cash & investments $153 $163 Accounts receivable $120 $109 Current ratio 3.4 3.4 Restricted cash & investments $124 $120 Workers’ comp reserve $187 $187 Debt $0 $0 Shareholders’ equity $316 $313
Slide 26: Appendix
( Appendix TRUE BLUE » el e/e ls BR aA © .
Slide 27: Financial Summary -- Annual
27 Financial Summary -- Annual In millions 2010** 2009 Growth % Revenue $1,149 $1,018 13% Gross profit $303 $291 4% % of Revenue 26.4% 28.6% SG&A expense $259 $262 -1% % of Revenue 22.5% 25.8% EBITDA* $45 $29 55% % of Revenue 3.9% 2.8% Net income $20 $9 122% % of Revenue 1.7% 0.9% Earnings per share
Slide 28: Reconciliation of EBITDA to Net Income
28 Reconciliation of EBITDA to Net Income *EBITDA is non-GAAP financial measure which excludes interest, taxes, depreciation and amortization from net income. EBITDA is a key measure used by management in evaluating performance. EBITDA should not be considered a measure of financial performance in i
Slide 29: Annual Revenue and EBITDA
Annual Revenue and EBITDA* 0 200 400 600 800 1,000 1,200 1,400 1,600 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 20 40 60 80 100 120 140 in $M R ev en ue E B IT D A * 29 Historical Summary *See disclosure and reconciliation of EBITDA in Appendix. 2008 excludes goodwi