Slide 1: www.TrueBlue.com
www.TrueBlue.com
Slide 2: Forward-Looking Statements
www.TrueBlue.com 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 regard
Slide 3: Q3 2016 Highlights
www.TrueBlue.com Q3 2016 Highlights Total revenue growth of 2%, net income growth of 17% Organic1 revenue decline of -6% (-3% excluding Amazon) Adjusted EBITDA2 growth of 12% Adjusted EBITDA margin expansion of 70 basis points (bps) o Taking the right steps to preserve profit margins o Disciplin
Slide 4: Financial Summary
www.TrueBlue.com Financial Summary Organic revenue trends excluding Amazon -3% for the quarter. Trends further softened through the quarter: o July = 0%, August = -3%, September = -5% Adjusted EBITDA margin expansion = 70 bps o Accretive acquisition performance = 40 bps o Pricing and cost manage
Slide 5: Gross Margin and SG&A Bridges
www.TrueBlue.com Gross Margin and SG&A Bridges SG&A Amounts in millions Gross Margin 24.7% 25.6% 0.4% 0.4% 0.1% Q3 2015 Acquisitions Revenue Mix Bill/Pay & Other Q3 2016 $125 $135 $11 $5 $6 Q3 2015 Acquisitions Integration and Other Charges* Organic Business Q3 2016 *Includes acquisition and integra
Slide 6: Staffing Services Segment
www.TrueBlue.com Staffing Services Segment1 Organic decline of -7% impacted by Amazon business Excluding Amazon, organic revenue down -3% on top of tougher prior period comparison. Q3-15 comp was +6% vs. Q2-15 comp +1%. Adjusted EBITDA margin down 50 bps as the organic revenue decline slightly
Slide 7: Managed Services Segment
www.TrueBlue.com Managed Services Segment1 Total growth of 63% from recent acquisitions and organic growth Mid-single digit organic revenue growth o New customer pipeline driving growth Strong increase in Adjusted EBITDA and related margin: o Aon Hewitt RPO acquisition and related synergies o
Slide 8: Debt and Liquidity – Substantial Improvements in 2016
www.TrueBlue.com $180 $216 $115 $202 $246 $139 2014 2015 Q3 2016 Net Debt Cash $101 $77 $155 $21 $30 $25 $123 $107 $179 2014 2015 Q3 2016 Borrowing Availability Cash Debt and Liquidity – Substantial Improvements in 2016 30% 31% 21% 2014 2015 Q3 2016 Total Debt Liquidity Debt to Total Capital Amounts
Slide 9: www.TrueBlue.com
www.TrueBlue.com
Slide 10: Q4 2016 Outlook
www.TrueBlue.com Q4 2016 Outlook Amounts in millions, except per share data 13-week basis Notes Revenue Growth Ranges Total Revenue Staffing Services Managed Services $670M to $686M -17% to -15% -20% to -18% 50% to 60% • Total organic revenue decline excluding Amazon of -5% to -8% (13-week basis) •
Slide 11: Amazon Update
www.TrueBlue.com Amazon Update Amazon is continuing to insource more control over its logistics operations Amazon will not be outsourcing contingent labor in their delivery business starting in early Q4-16 Year-to-date revenue and Adjusted EBITDA for the delivery portion of the business is $35
Slide 12: Update on Recent Acquisitions
www.TrueBlue.com Update on Recent Acquisitions Strategic Rationale Above market growth in 2016 Great compliment to existing business Productivity-based business model provides unique client value proposition Competitively differentiated workforce solution Embedded business process
Slide 13: www.TrueBlue.com
www.TrueBlue.com
Slide 14: Growth Strategies
www.TrueBlue.com Growth Strategies
Slide 15: Simplify Branding to Increase Operational Agility & Growth
www.TrueBlue.com Simplify Branding to Increase Operational Agility & Growth Staffing Services RPO division of Aon Hewitt Managed Services Timing: Legacy: Future: By mid-2017 NA Complete
Slide 16: www.TrueBlue.com
www.TrueBlue.com
Slide 17: Non-GAAP Terms and Definitions
www.TrueBlue.com Non-GAAP Terms and Definitions EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization. Adjusted EBITDA further excludes from EBITDA, costs related to acquisition and integration, goodwill and intangible asset impair