Slide 1: Q3 2014 Investor Presentation
Q3 2014 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
Q3 2014 Investor Presentation 2 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 f
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• • • • • • • • • Q3 2014 Investor Presentation 3
Slide 4: Specialized Staffing Solutions and Specialized Outsourcing Solutions
SPECIALIZED STAFFING SOLUTIONS SPECIALIZED OUTSOURCING SOLUTIONS • • • • • • • • $1.8B $700M Q3 2014 Investor Presentation 4 1 This is pro forma based upon the Seaton Acquisition which is now referred to as Outsourcing Solutions. Numbers for 2014 are included for example purposes to enhance the unde
Slide 5: Staffing and Outsourcing Solutions offerings
SPECIALIZED STAFFING SOLUTIONS SPECIALIZED OUTSOURCING SOLUTIONS • • • • • • • • • • 1 Outsourced Workforce Management 2 Managed Service Provider 3 Recruitment Process Outsourcing Q3 2014 Investor Presentation 5
Slide 6: Pro forma revenue, gross profit and Adjusted EBITDA
$1,316 $1,390 $1,669 $1,800 $430 $500 $606 $700 $1,746 $1,890 $2,275 $2,500 $0 $500 $1,000 $1,500 $2,000 $2,500 2011 2012 2013 2014 ($ in millions) Revenue1 Gross Profit 1 Adjusted EBITDA 1,2, 3 ($ in millions) ($ in millions) $348 $372 $442 $475 $69 $82 $95 $110 $417 $454 $537 $585 $0 $100 $200 $30
Slide 7: Compelling market trends driving growth
Compelling market trends driving growth Industry Highlights • • • • Sources: Staffing Industry Analysts, Bureau of Labor Statistics, and TrueBlue estimates 1 U.S. Staffing Market What Staffing Services Offers Clients Q3 2014 Investor Presentation 7 Projected Industrial Staffing Market Growth $25 $27
Slide 8: Outsourcing Market - Outsourced Workforce Management
OUTSOURCING MARKET - OUTSOURCED WORKFORCE MANAGEMENT (OWM) Outsourcing on the rise as companies focus on their core business • • • • • What OWM Offers Clients Sources: SIA, BLS and TrueBlue Estimates 1 US Staffing Market; Logistics and Manufacturing is a subset of the Industrial Staffing Market Q3 2
Slide 9: MSP Market Size
*MSP Market Size Industry Forecast is spend under management. Sources: SIA and TrueBlue estimates 1 Global Market; represents spend under management • • • • What MSP Offers Clients Streamlined & Optimized Workforce Mgmt. 1Stafffing Industry Analysts, 2013 VMS and MSP Competitive Landscape Report Q3
Slide 10: Recruitment Process Outsourcing market
• • • • Sources: NelsonHall, TrueBlue estimates What RPO Offers Clients Q3 2014 Investor Presentation 10 1 Aberdeen Group, 2009
Slide 11: Strategic priorities
• Effectively use capital to increase shareholder returns • Add industry leading talent, ensure strong cultural fit • Integrate similar offerings and processes, leverage best practices, preserve differentiated expertise • Increase talent acquisition capabilities with mobile and online sourcing and h
Slide 12: Strategy Produces Results
Q3 2014 Investor Presentation 12 Strategy Produces Results Strategy Increases Growth Opportunities • • • • • Successful Track Record Expanding Our Staffing Services Offering - Organic Development & Acquisitions 1996 2004-2005 2007-2008 2010-2013 2013 General Labor On Demand Manufacturing & Skilled C
Slide 13: New Opportunities in Attractive Human Capital Market
New Opportunities in Attractive Human Capital Market • Offerings are complementary with staffing solutions group, minimizing sales channel conflict • Strong customer renewal rates (95%+) and favorable long-term outsourcing trends providing greater revenue stability and predictability • Centralizatio
Slide 14: Innovation Driving More Business Efficiency
SALES SERVICE • Electronic pay gives workers immediate access to their payroll funds, provides greater security and convenience; reduces payroll processing time • Texting automates worker dispatch/assignment; improved candidate response rate saves recruiting time and improves business performance In
Slide 15: Strategic Focus
Strategic Focus • • • • • Q3 2014 Investor Presentation 15 • • • Strategic Fit Limited Enterprise Risk Culture Return on Investment Revenue from Acquisitions 60% Organic Revenue 40% 2013 Pro Forma Revenue
Slide 16: Overview of Recent Seaton Corp. Acquisition
• Purchase Price of $310M to acquire 100% of Seaton’s equity and tax assets with a net present value of ~$20M – 7.8x forward 12 months Adjusted EBITDA 1 purchase multiple, net of acquired tax asset • Funded via $123M of Cash and $187M of Debt • Committed financing via new $300M asset-backed facility
Slide 17: Recent Seaton Acquisition Increases Return on Equity and Earnings Accretion
Q3 2014 Investor Presentation 17 3% $0.25 $0.20 1 Seaton impact excluding amortization. 2 Excludes management estimate of amortization of purchased intangibles. Purchase accounting is in process. Actual Pro forma, incl. Seaton1 13% 13% 16% $0.25 COMPELLING EARNINGS ACCRETION EFFECTIVE USE OF CAPITAL
Slide 18: Management team
• 30 years of management experience; 15 years with TBI • Extensive experience in strategic planning, operations, sales, and finance • TrueBlue CEO since 2006, president since 2005 • Named to List of 100 Most Influential People in Staffing Industry • 13 years of staffing experience; 25 years experien
Slide 19: Non-GAAP financial measures
Q3 2014 Investor Presentation 19 1 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 the purchase, integration, reorganization and shu
Slide 20: Q3 2014 – Q2 2015 outlook
Q3 2014 – Q2 2015 Q3 2014 Investor Presentation 20 1 See Q2 2014 earnings release presentation issued July 24, 2014 for interim period expectations. 2 EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted
Slide 21: Q3 2014E Reflects Appropriate Changes from Seaton Acquisition
Q3 2014E Reflects Appropriate Changes from Seaton Acquisition Q3 2014E Q2 2014 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 the p
Slide 22: Reconciliation of GAAP Operating Income to EBITDA and Adjusted EBITDA
TrueBlue 2011 Seaton 20112 Combined TrueBlue 2012 Seaton 2012 2 Combined TrueBlue 2013 Seaton 2013 2 Combined Seaton Q3 2014E- Q2 2015E Adjustments to EBITDA: 1 EBITDA and Adjusted EBITDA are non-GAAP financial measures which excludes depreciation and amortization from income from operations. EBITDA