Trueblue, Inc. · NYSE:TBI
Trueblue — Investor Presentation (November 2013)
32 slides from Trueblue's investor presentation, Nov 13, 2013
Slide 1: The Leader in Specialized Blue-Collar Staffing
[RUEBLUE The Leader in Specialized Blue-Collar Staffing Q3 2013 Investor Presentation TRUEBLUE
Slide 2: 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 • 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
Slide 4: Company Overview
COMPANY OVERVIEW 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. TrueBlue Q3 Investor Presentation | page 4
Slide 5: Revenue by Service Line and Industry Mix
*Business line revenue amounts rounded to the nearest $5 million. REVENUE BY SERVICE LINE AND INDUSTRY MIX ENERGY AND INDUSTRIAL 10% WHOLESALE TRADE 8% RETAIL 7% SERVICES & OTHER 14% AVIATION 9% CONSTRUCTION 20% TRANSPORTATION 12% MANUFACTURING 20% 2012 Total Revenue by Industry LABOR READY $835M PL
Slide 6: Quick Company Facts
QUICK COMPANY FACTS 25 $1.65B Years in Business 2013 Revenue Forecast 350,000 Connect More Than People to Work Each Year 140,000 Serve More Than Businesses Annually TrueBlue Q3 Investor Presentation | page 6
Slide 7: What We Do
WHAT WE DO TrueBlue Q3 Investor Presentation | page 7 • Recruit, screen and assign workers to customer job assignments • Employer of Record for workers • Workers paid based on hours worked and hourly pay rate • Customers billed for hours worked and agreed-upon bill rate
Slide 8: Blue-Collar Staffing: $28 Billion Industry
BLUE-COLLAR STAFFING: $28 BILLION INDUSTRY $100 Billion Overall Industry $28B OFFICE IT FINANCE HEALTHCARE OTHER LIGHT INDUSTRIAL / BLUE-COLLAR STAFFING TrueBlue Q3 Investor Presentation | page 8 Source: Staffing Industry Analysts, TrueBlue estimates
Slide 9: Strong Growth Projected for Blue-Collar Staffing
STRONG GROWTH PROJECTED FOR BLUE-COLLAR STAFFING Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates 2012 2016 $35 BILLION $28 BILLION Market Market Forecast TrueBlue Q3 Investor Presentation | page 9
Slide 10: Compelling Growth Trends in Blue-Collar Jobs
COMPELLING GROWTH TRENDS IN BLUE-COLLAR JOBS Blue-collar Jobs are five of the Top 20 Growth Industries 2010-2020 (1000s): Source: U.S. Bureau of Labor Statistics TrueBlue Q3 Investor Presentation | page 10 0 500 1,500 2,000 1,000 #1: Construction 1,840 #2: Retail Trade 1,800 #6 Food Services 860 #9:
Slide 11: Businesses Increase Use of Temporary Staffing
BUSINESSES INCREASE USE OF 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 49 months from the start of the recoveries: Aug
Slide 12: Staffing Industry Growth Drivers: Construction
STAFFING INDUSTRY GROWTH DRIVERS: CONSTRUCTION • Construction employment near historic lows • Positive momentum for housing starts; construction employment to follow • Significant construction revenue increase • Multiplier effect on manufacturing, warehousing, logistics, retail, and services OPPORTU
Slide 13: TrueBlue: Strong Construction Upside
TRUEBLUE: STRONG CONSTRUCTION UPSIDE $450 MILLION $280 MILLION 2012 Construction Revenue TrueBlue Q3 Investor Presentation | page 13 2006 Construction Revenue
Slide 14: Staffing Industry Growth Drivers: Manufacturing
STAFFING INDUSTRY GROWTH DRIVERS: MANUFACTURING • U.S. Manufacturing Renaissance • Increased incentives to “reshore” including increasing wages in China, offshore product quality concerns, and logistics costs • Decline in energy costs • Provide flexible, skilled labor force • Closer-to-customer impr
Slide 15: Staffing Industry Growth Drivers: Transportation
STAFFING INDUSTRY GROWTH DRIVERS: TRANSPORTATION • High driver turnover • New safety regulations create need for more drivers • 100,000 new drivers needed per year, over the next 10 years* • Access to hard-to-find talent • Safety and compliance leadership • Flexible recruiting model • Logistics comp
Slide 16: Staffing Industry Growth Drivers: Energy
STAFFING INDUSTRY GROWTH DRIVERS: ENERGY • Growing energy independence • Skilled worker shortages • More than 100,000 new jobs in the solar industry by 2016* • Deliver and manage skilled work force in remote areas • Deep technical knowledge in green industries • Partner with trades schools to fill s
Slide 17: Strategies Deliver Growth
STRATEGIES DELIVER GROWTH Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates CAGR 13% TrueBlue revenue growth at TrueBlue Q3 Investor Presentation | page 17 8% Staffing industry growth at CAGR since 2010 since 2010
Slide 18: Growth Strategies
ACQUISITION GROWTH GROWTH STRATEGIES 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 TrueBlue Q3 Investor Presentation | page
Slide 19: Multiple Core Business Growth Strategies
MULTIPLE CORE BUSINESS GROWTH STRATEGIES TrueBlue Q3 Investor Presentation | page 19 • Develop new blue-collar service lines • Differentiate through industry specialization • Extend reach through geographic expansion ORGANIC GROWTH
Slide 20: Successful Acquisition Strategy
SUCCESSFUL ACQUISITION STRATEGY RESULTS CONSIDERATION • ROIC* • Strategic fit • Cultural fit • Limited financial risk • New business capabilities • Talent • ROI >cost of capital • $240M invested between 2004 - 2013 • Aggregated acquired companies ~50% of 2013 revenue • Platforms to seamlessly tuck-i
Slide 21: Recent Acquisition Successes
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: Efficiencies Improve Operating Leverage
EFFICIENCIES IMPROVE OPERATING LEVERAGE TrueBlue Q3 Investor Presentation | page 22 • Reduce physical branch dependency • Increase efficiencies through technology • Centralize services EFFICIENT OPERATIONS
Slide 23: Enabling Efficiency Through Technology
ENABLING EFFICIENCY THROUGH TECHNOLOGY TrueBlue Q3 Investor Presentation | page 23 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
Slide 24: Financial Review
Financial Review
Slide 25: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE $86M* 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 was pre
Slide 26: 2013 EBITDA and Adjusted EBITDA Bridge
$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* Estimate Non-Recurring Acquisition Costs 2013 Adjusted EBITDA* Estimate $72M $9M $10M $13M 2013 EBITDA AND ADJUSTED EBITDA BRIDGE $79M $7M
Slide 27: Impressive 2013 Revenue Trends
IMPRESSIVE 2013 REVENUE TRENDS 0% 20% Q-1 '13* Q-2 '13* Q-3 '13* Q-4 '13F* Total Revenue Growth Organic Revenue Growth, Including Large Aviation Project TrueBlue Q3 Investor Presentation | page 27 * All calculations based on comparison to same period a year ago. Total revenue includes MDT acquisitio
Slide 28: Powerful Operating Leverage
Incremental Organic Revenue $100 Gross Profit Generated $26 Operating Expense Associated with Incremental Revenue $(9) – (11) Incremental EBITDA* ≈$15 * Reflects an approximation of the incremental EBITDA that management believes can be achieved, in general, with favorable revenue growth and current
Slide 29: Strong Capital Position Supports Growth
Dollar amounts in millions Q-3 2013 Cash & Investments $ 139 Borrowing Availability $ 74 Total Liquidity Strong liquidity position to fund acquisition strategy $ 213 STRONG CAPITAL POSITION SUPPORTS GROWTH Debt Low financial leverage balances strong operating leverage $ 32 TrueBlue Q3 Investor Prese
Slide 30: TrueBlue 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 TRUEBLUE INVES
Slide 31: Appendix
Appendix
Slide 32: Operating Income to EBITDA and Adjusted EBITDA Reconciliation
OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA RECONCILIATION In millions *EBITDA and Adjusted EBITDA are non-GAAP terms. EBITDA excludes deprecation and amortization from Income from Operations and Adjusted EBITDA excludes non-recurring costs related to the purchase, integration, reorganization and