Slide 1: Q2 2021 Earnings
trueblue THE PEOPLE COMPANY® Q2 2021 Earnings July 2021
Slide 2: Forward-looking statements
www.TrueBlue.c om 2 Forward-looking statements This document contains forward-looking statements relating to our plans and expectations, all of which are subject to risks and uncertainties. Such statements are based on management’s expectations and assumptions as of the date of this release and invo
Slide 3: Q2 2021 Overview
www.TrueBlue.c om 3 Q2 2021 Overview Strong revenue growth and margin expansion drive results ▪ Total revenue +44% v. -7% in Q1 2021 - trends improved across all segments ▪ Net income was $16 million v. a net loss of $8 million in Q2 2020 ▪ Adjusted EBITDA1 was $25 million v. -$5 million in Q2 2020
Slide 4: Financial summary
www.TrueBlue.c om 4 Financial summary 1 See the appendix to this presentation and “Financial Information” in the investors section of our website at www.trueblue.com for a definition and full reconciliation of non-GAAP financial measures to GAAP financial results. Amounts in millions, except per sha
Slide 5: Gross margin and SG&A bridges
www.TrueBlue.c om 5 Gross margin and SG&A bridges Amounts in millions Gr os s m ar gi n SG &A $97 -$6 $20 $111 Q2 2020 Core business Q2 2021 23.2% 0.7% 1.7% 0.8% 26.4% Q2 2020 Staffing RPO core RPO severance Q2 2021 Adjusted EBITDA exclusions1 1 $6 million represents the year-over-year change in Adj
Slide 6: Q2 2021 Results by segment
www.TrueBlue.c om 6 Q2 2021 Results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $299 $152 $64 % Change 43% 28% 106% Segment profit1 $18 $3 $11 % Change 2,813% 79% 490% % Margin 6.2% 2.1% 16.9% Change 590 bps 60 bps 2580 bps Notes: ■ Revenue was +43% v. -13% in Q1
Slide 7: Strategy highlights
www.TrueBlue.c om 7 Strategy highlights Lev rage technology and our industry leading position to grow market share and enhance efficiency ▪ Focus sales and marketing efforts to capitalize on industry dynamics (i.e. outsourcing) and hard-hit sectors entering recovery (i.e. travel & leisure) ▪ Leverag
Slide 8: JobStack
www.TrueBlue.c om 8 JobStackTM Industry-leading mobile app that connects our associates with jobs and simplifies client ordering Leveraging our digital strategy Heavy client users1 JobStack adoption 2021 YE Goals • Revenue growth +40 pts faster than non-users • Accounts for 46% of eligible revenue2,
Slide 9: Balance sheet remains strong
www.TrueBlue.c om 9 12% 6% 0% 0% 2018 2019 2020 Q2 2021 $80 $37 $0 $0 $33 $47 $38 $63 $105 Net debt Cash 2018 2019 2020 Q2 2021 $260 $295 $224 $275 $213 $257 $161 $170 $47 $38 $63 $105 Borrowing availability Cash 2018 2019 2020 Q2 2021 Balance sheet remains strong Amounts in millions Note: Figures m
Slide 10: Outlook
Outlook trueblue THE PEOPLE COMPANY?
Slide 11: Select outlook information
www.TrueBlue.c om 11 Select outlook information Item FY 2021 Commentary Gross margin +100 to +160 bps v. prior year Expansion from segment revenue mix, lower workers' compensation costs, workforce reduction costs incurred in FY 2020 and operating leverage from rising PeopleScout volumes. SG&A $452M
Slide 12: Appendix
Appendix trueblue THE PEOPLE COMPANY?
Slide 13: Non-GAAP financial measures and reconciliations
www.TrueBlue.c om 13 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 ce
Slide 14: Reconciliation of GAAP net income to adjusted net income and EBITDA
www.TrueBlue.c om 14 1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE (Unaudited) 13 weeks ended (in thousands, except for per share data) Jun 27, 2021 Jun 28, 2020 Net income (loss) $ 15,884 $ (8,168) Amortization of int
Slide 15: Footnotes
www.TrueBlue.c om 15 Footnotes: (1) Amortization of software as a service assets is reported in selling, general and administrative expense. (2) Workforce reduction costs for the 13 weeks ended June 28, 2020 were primarily due to employee reductions as part of our cost management actions in response