Slide 1: Q2 2020 Earnings
Q2 2020 Earnings July 2020
Slide 2: Forward-looking statements
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 involve many risks and u
Slide 3: Q2 2020 summary
Q2 2020 summary Q2 results impacted by COVID-19 disruption ▪ Total revenue -39% v. -11% for Q1 2020 ▪ Modest intra-quarter revenue trend improvement (June -35% v. April -42%) ▪ Net loss of $8 million, or $(0.23) per share ▪ Adjusted net loss1 of $4 million, or $(0.12) per share Strong cost managemen
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q2 2020 Q2 2019 Change Revenue $359 $589 -39% Net Income (Loss) -$8.2 $19.4 -142% Net Income (Loss) Per Diluted Share -$0.23 $0.49 -147% Adjusted Net Income (Loss)¹ -$4.1 $25.1 -116% Adj. Net Income (Loss) Per Diluted Share -$0.12 $0.64 -1
Slide 5: Monthly revenue trends
Monthly revenue trends Total TrueBlue (35)% (41)% (42)% April May June PeopleReady PeopleManagement PeopleScout (15)% (11)% (25)% (30)% (31)% (39)% (46)% (46)% (50)% (54)% (54)% April May June July MTD* *MTD results reflect the three weeks ended Jul. 19. Excluding the benefit from 4th of July fallin
Slide 6: Gross margin and SG&A bridges
Gross margin and SG&A bridges 26.6% Gross Margin1 23.2% -1.0% -1.6% -0.8% Q2 2019 Staffing RPO-Core RPO-Severance Q2 2020 Amounts in millions $126 $3 $97 SG&A -$32 Adjusted EBITDA Q2 2019 Core business Q2 2020 exclusions2 1 We have made certain reclassifications between cost of services and SG&A exp
Slide 7: Q2 2020 results by segment
Q2 2020 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $209 $119 $31 % Growth -43% -23% -53% Segment Profit $1 $2 -$3 (Loss)1 % Growth -97% -56% -125% % Margin 0.3% 1.5% -8.9% Change -560 bps -120 bps -2600 bps ¬ Revenue was -43% v. -8% last ¬ Revenue was -23
Slide 8: Balance sheet remains strong
Balance sheet remains strong Liquidity Total Debt Amounts in millions Amounts in millions Borrowing Availability 1 Cash Net Debt Cash $295 $260 $38 $47 $217 $119 $146 $92 $29 $80 $45 $29 $257 $213 $47 $37 $125 $90 $92 $117 $33 $38 2017 2018 2019 Q2 2020 2017 2018 2019 Q2 2020 Total Debt to Capital2
Slide 9: Strategic highlights
Strategic highlights Safety remains our top priority. Key elements of our plan include: • Communication: established a resource center for staff; safety specialists Employee and regularly meet with operational teams and clients client safety • Protective equipment: implemented social distancing meas
Slide 10: Outlook
Outlook | trueblue THE PEOPLE COMPANY
Slide 11: Selected outlook information
Selected outlook information We are not providing customary guidance. However, certain information has been provided to help investors as they form their own estimates. Item Q3 2020 FY 2020 Commentary Gross Margin -210 to -150 -200 to -140 Gross margin headwinds in FY 2020 primarily due to client pr
Slide 12: Appendix
Appendix | trueblue THE PEOPLE COMPANY
Slide 13: Non-GAAP financial measures and non-GAAP reconciliations
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 certain aspects of our
Slide 14: Reconciliation of U.S. GAAP net income (loss) to adjusted net income (loss)
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 28, 2020 Jun 30, 2019 Net income (loss) $ (8,168) $ 19,406 Amortization of intangible assets of acq
Slide 15: Footnotes
Footnotes: 1. Amortization of intangible assets of acquired businesses. 2. Acquisition/integration costs for the acquisition of TMP Holding LTD completed on June 12, 2018. 3. Other adjustments for the 13 weeks ended June 28, 2020 and June 30, 2019 primarily include workforce reduction costs of $11.0