Trueblue, Inc. · NYSE:TBI
Trueblue — Q3 2017 Earnings Presentation
15 slides from Trueblue's earnings presentation, Oct 30, 2017
Slide 1: www.TrueBlue.com
www.TrueBlue.com
Slide 2: Forward-Looking Statements
www.TrueBlue.com Forward-Looking Statements
Slide 3: Q3 2017 Summary
www.TrueBlue.com Q3 2017 Summary Improving revenue trends Revenue decline for the quarter improved to -5% v. -9% for Q2 2017 Exit rate (month of September v. month of June) improved to -3% v. -9% Solid gross margin performance Seventh consecutive quarter of year-over-year gross margin expansio
Slide 4: Financial Summary
www.TrueBlue.com Financial Summary Monthly revenue trends improved across all business segments Net income comparison benefited from asset impairment, integration and Amazon exit costs in Q3 2016 Adjusted EBITDA margin down from negative operating leverage Amounts in millions, except per share
Slide 5: Gross Margin and SG&A Bridges
www.TrueBlue.com Gross Margin and SG&A Bridges SG&A Amounts in millions $135 $132 $5 $2 Q3 2016 EBITDA Addbacks Storm-related Q3 2017 1 Gross Margin 25.6% 26.0% 0.3% 0.1% Q3 2016 PeopleScout PeopleReady & PeopleManagement Q3 2017 1 Includes acquisition and integration costs of $1.4M, branch signage
Slide 6: Results by Segment
www.TrueBlue.com Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $415 $197 $49 % Growth -5% -9% (Flat ex-Amazon) +10% Adj. EBITDA $29 $7 $10 % Growth -30% +31% +23% % Margin Y/Y Change 6.9% -240 bps 3.5% +110 bps 21.0% +220 bps Notes: Note: Figures may not sum to consolidated to
Slide 7: Segment Strategy Highlights
www.TrueBlue.com Segment Strategy Highlights Productivity solutions enhance future growth prospects o Compelling value proposition o Differentiated service, high EBITDA margin o Perfect fit with the growing world of e-commerce Attractive margin business with compelling value proposition
Slide 8: Lower Debt and Ample Liquidity
www.TrueBlue.com $216 $103 $100 $30 $35 $35 $246 $138 $135 2015 2016 Q3 2017 Net Debt Cash $77 $136 $118 $30 $35 $35 $107 $171 $153 2015 2016 Q3 2017 Borrowing Availability Cash Lower Debt and Ample Liquidity 31% 21% 20% 2015 2016 Q3 2017 Total Debt Liquidity Debt to Total Capital1 Amounts in millio
Slide 9: www.TrueBlue.com
www.TrueBlue.com
Slide 10: Q4 2017 Outlook
www.TrueBlue.com Q4 2017 Outlook Revenue Outlook % Growth – GAAP % Growth – Comparable1 Notes Total $660 to $675 -8% to -10% -1% to -3% • Total company revenue growth on a GAAP basis excluding Amazon is expected to be -6% to -8% • Total company revenue growth on a comparable basis excluding Amazon i
Slide 11: www.TrueBlue.com
www.TrueBlue.com
Slide 12: Non-GAAP Financial Measures and Non-GAAP Reconciliations
www.TrueBlue.com NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS October 30, 2017 Q3 2017 Earnings Results 12 Non-GAAP Measure Definition Purpose of Adjusted Measures EBITDA and Adjusted EBITDA EBITDA excludes from Net income the effects of: - interest expense, - income taxes, and - depreci
Slide 13: Reconciliation of U.S. GAAP Net Income to Adjusted Net Income
www.TrueBlue.com RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) 1. Acquisition/integration costs related to the acquisition of the recruitment process outsourcing business of Aon Hewitt, which was completed on January 4, 2016. In a
Slide 14: Reconciliation of U.S. GAAP Net Income to EBITDA and Adjusted EBITDA
www.TrueBlue.com RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) Note: See prior slide for footnotes (1) and (2). 6. These third-party processing fees are associated with generating the Work Opportunity Tax Credits, which are designed to encourage employers to hire w
Slide 15: Reconciliation of GAAP Revenue Excluding Former Largest Customer
www.TrueBlue.com RECONCILIATION OF U.S. GAAP REVENUE TO REVENUE EXCLUDING THE COMPANY'S FORMER LARGEST CUSTOMER (Unaudited) SEGMENT EBITDA RECONCILIATION TO ADJUSTED EBITDA (Unaudited) 1. Segment earnings before interest, taxes, depreciation and amortization ("Segment EBITDA") is a primary measure o