Slide 1: Investor Presentation Q2 2012
TrueBlue™ (NYSE:TBI) 2011 Q2 Results 1 Investor Presentation Q2 2012
Slide 2: Cautionary Note About Forward-Looking Statements
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 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 curren
Slide 3: TrueBlue Investment Highlights
Successful vertical industry approach Compelling growth potential for staffing industry Unique industry-related growth drivers for TrueBlue Multiple strategies to drive growth and efficiency Strong operating leverage Solid balance sheet TrueBlue Investment Highlights TrueBlue™ (NYSE:TBI)
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 TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 4
Slide 5: Blue-Collar Specialties
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 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
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation The Leading Provider of Blue-Collar Staffing 2011 Revenues = $1.3 Billion* *Brand revenue amounts rounded to the nearest $5 million. 6
Slide 7: Sales by Industry
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 7 Sales by Industry 2011 2006 Construction 25% 37% Manufacturing 20% 17% Transportation 12% 9% Wholesale Trade 9% 10% Retail 7% 8% Services & Other 15% 19% Aviation 12% 0%
Slide 8: TrueBlue Recognized as a Credible Industry Leader
TrueBlue Recognized as a Credible Industry Leader “Best practices by DHS/ICE Partner” “Forbes Most Trustworthy Companies” “Gold Standard accreditation for promoting employee health and wellness” “Platinum 400” “Award of Excellence” “Hot Growth Company” “National Universal Agreement to Mediate” TrueB
Slide 9: Staffing Industry: A $90 Billion Industry
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Other Finance Healthcare Office IT 9 Staffing Industry: A $90 Billion Industry Staffing Industry Analysts 2011 forecast, rounded $25 Billion Industrial/ Blue-Collar $65 Billion
Slide 10: Staffing Industry and TrueBlue-Specific Growth Drivers
Economic volatility & uncertainty Greater need for flexibility & agility Increased government regulation Construction rebound Growing need and shortage of truck drivers Manufacturing growth expected to continue 10 Aging workforce Staffing Industry and TrueBlue-Specific Growth Drivers ATTRACTIVE DRIV
Slide 11: Blue-Collar Staffing: Strong Future Growth
2014 MARKET FORECAST 2011 MARKET Blue-Collar Staffing: STRONG FUTURE GROWTH Source: Staffing Industry Analysts, Moody’s economic forecasts, TrueBlue estimates TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 11
Slide 12: Construction Poised to Rebound
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Construction Poised to Rebound Construction Employment As a percentage of total non-farm employment 12 5.1% Historical Average (1950 – 2010) “Construction is projected to be the fastest growing goods-producing industry over the next decade, represen
Slide 13: Transportation Employment Poised for Growth
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Bureau of Labor Statistics, 2020 Employment Projections Rosalyn Wilson, Council of Supply Chain Management Professionals Transportation Employment Poised for Growth U.S. Transportation Employment 000s Source: Bureau of Labor Statistics. Seasonally a
Slide 14: New Boom Ahead for U.S. Manufacturing
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Boston Consulting Group, May 5, 2011 New Boom Ahead for U.S. Manufacturing Purchasing Managers Index PMI Source: Federal Reserve Bank of St. Louis. A PMI reading above 50 percent indicates that the manufacturing economy is general ly expanding; belo
Slide 15: More Opportunities to Serve the Market
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation $1.35B Revenue Labor Ready (89%) CLP (11%) $5 Billion Market 2006 $1.3B Revenue Labor Ready (62%) CLP (13%) Spartan (10%) PlaneTechs (11%) Centerline (4%) 2011 $15 Billion Market 15 More Opportunities to Serve the Market Percentages in parentheses r
Slide 16: Market Share Opportunities
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation $4.5 Billion (20%) $7.5 Billion (2%) $1 Billion (17%) $1 Billion (15%) $1 Billion (5%) Market Share Opportunities 1 Staffing Industry Analysts 2011 forecast, 2 Market share (%) based on TrueBlue estimates Market Size1 & (Market Share)2 16
Slide 17: Multiple Strategies to Drive Growth and Efficiency
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 17 Multiple Strategies to Drive Growth and Efficiency Focus How Why Organic Growth in Existing Geographies Geographic Expansion Acquisitions +++ + + Operating Leverage & Market Share Market Share Market Share • Vertical Market Specialization • Techn
Slide 18: Strategy: Vertical Market Specialization
18 Strategy: Vertical Market Specialization Dedicated sales leaders with expertise in the specific industries we serve Specialized national sales and service teams deliver tailored solutions to our national customers Local sales and service staff use industry best practices to serve local cust
Slide 19: Strong Operating Leverage from Organic Revenue
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Incremental Revenue $100 Gross Profit Generated $25- 26 Operating Expense Associated with Incremental Revenue $(9) – (10) People Investments $(2) – (3) Incremental EBITDA $12 - 15 19 Strong Operating Leverage from Organic Revenue Organic growth from
Slide 20: Geographic Expansion Opportunities
Geographic Expansion Opportunities Existing markets KEY 20 TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation
Slide 21: Successful Acquisition Record
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Successful Acquisition Record Acquisition 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
Slide 22: Financial Review
TrueBlue™ (NYSE:TBI) 2011 Q2 Results 22 Financial Review
Slide 23: Financial Summary
23 Financial Summary Q-1 2012 Q-1 2011 Growth % Revenue $ 311 $ 274 13% Gross profit $ 79 $ 70 13% % of Revenue 25.5% 25.5% SG&A expense $ 72 $ 65 11% % of Revenue 23.2% 23.8% Depreciation & amortization $ 5 $ 4 22% % of Revenue 1.5% 1.4% Income from operations $ 2 $ 1 151% % of Revenue 0.8% 0.3% Ne
Slide 24: Solid Balance Sheet
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 24 Solid Balance Sheet In millions Q-1 2012 Q-4 2011 Cash & investments $125 $109 Accounts receivable $144 $154 Current ratio 2.5 2.5 Restricted cash & investments $131 $130 Workers’ comp reserve $191 $192 Debt $0 $0 Shareholders’ equity $300 $294
Slide 25: Recent Revenue Trends
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Recent Revenue Trends 25 * Q4 ’10 was a 14 -week quarter vs. 13 weeks for Q4 ‘11. 22% normal- ized growth*
Slide 26: Gross Margin Change
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation Gross Margin Change 24.0% 24.5% 25.0% 25.5% 26.0% Q1 2011 2011 HIRE Act Credits Pricing/Other Q1 2012 25.5% 25.5% -0.4% +0.4% TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 26
Slide 27: SG&A Expense Change
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 27 SG&A Expense Change $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1 2011 Variable People Investments Other Q1 2012 +$4M $65M +$2M +$1M $72M
Slide 28: Appendix
TrueBlue™ (NYSE:TBI) 2011 Q2 Results 28 Appendix
Slide 29: Reconciliation of Net Income to EBITDA
TrueBlue™ (NYSE:TBI) Q2 2012 Investor Presentation 29 Reconciliation of Net Income to EBITDA $ $ $ $ $ $ $ $ $ $ $ $ $ $ * 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 perf