Slide 1: Q4 2022 Earnings
E| trueblue THE PEOPLE COMPANY* Q4 2022 Earnings
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, and expected growth from our digital investme
Slide 3: Overview
Overview Q4 2022 FY 2022 Strong execution despite macroeconomic Revenue growth and gross margin drive conditions bottom-line results ▪ Total revenue -10% ▪ Total revenue +4% • Steady underlying monthly revenue trends at • Strong revenue growth across all three PeopleReady and PeopleManagement segmen
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q4 2022 Change FY 2022 Change Revenue $558 -10% $2,254 +4% Net income $7.0 -65% $62.3 +1% Net income per diluted share $0.21 -63% $1.86 +7% Net income margin 1.3% -190 bps 2.8% 0 bps Adjusted net income¹ $14.1 -43% $81.2 +15% Adj. net inco
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 0.7% 0.4% 26.8% 26.5% Gross margin -1.4% Q4 2021 Workers' Bill / Pay Business mix Q4 2022 compensation spread and other1 Amounts in millions $138 $134 SG&A $0 -$4 Q4 2021 Adjusted EBITDA Core business Q4 2022 exclusions2 1 Includes -0.4% driven by a revenue reserve adju
Slide 6: Q4 2022 Results by segment
Q4 2022 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $315 $69 $174 % Change -13% -16% -2% Segment profit1 $22 $2 $4 % Change -18% -78% -8% % Margin 7.1% 3.6% 2.4% Change -50 bps -1040 bps -10 bps Notes: ■ Revenue -13% ■ Revenue -16% due to ■ Revenue -2% due
Slide 7: Strategic highlights and priorities
Strategic highlights and priorities ▪ Digitalize our business ▪ Augment sales team to ▪ Leverage sales resource model to gain market enable specialization and investments to expand share from smaller, less gain market share in high into under-penetrated growth sectors geographic markets capitalized
Slide 8: Balance sheet remains strong
Balance sheet remains strong Liquidity Cash net of debt Amounts in millions Amounts in millions Borrowing availability Cash $344 $365 $72 $295 $63 $50 $72 $38 $50 $224 $63 $257 $294 $293 $161 $1 2019 2020 2021 2022 2019 2020 2021 2022 Total debt to capital1 Share repurchases Amounts in millions $61
Slide 9: Outlook
Outlook | trueblue THE PEOPLE COMPANY?
Slide 10: Select outlook information for Q1 2023
Select outlook information for Q1 2023 Item Q1 2023 Commentary PeopleReady benefited from a high volume of retail projects and above average $455M to $480M base business results during the first half of 2022, which are not expected to fully Revenue -18% to -13% v. prior year repeat. The impact to to
Slide 11: Select outlook information for FY 2023
Select outlook information for FY 2023 Item FY 2023 Commentary -30 to +30 Gross margin Gross margin expected to hold relatively steady. bps v. prior year SG&A $499M to $505M Refer to EBITDA adjustments for additional information on expected expense. EBITDA • ~$3M in PeopleReady technology upgrade co
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 GAAP net income to adjusted net income
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) 13 weeks ended 52 weeks ended (in thousands, except for per share data) Dec 25, 2022 Dec 26, 2021 Dec 25, 2022 Dec 26, 2021 Net income $ 7,045 $ 20,210 $ 62,273 $ 61,634 Amortizatio
Slide 15: Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended 52 weeks ended (in thousands) Dec 25, 2022 Dec 26, 2021 Dec 25, 2022 Dec 26, 2021 Net income $ 7,045 $ 20,210 $ 62,273 $ 61,634 Income tax expense (benefit) (54) 5,278 11,143 12,216 Interest expense an
Slide 16: Reconciliation of GAAP SG&A expense to adjusted SG&A expense
3. RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE (Unaudited) 13 weeks ended 52 weeks ended (in thousands) Dec 25, 2022 Dec 26, 2021 Dec 25, 2022 Dec 26, 2021 Selling, general and administrative expense $ 133,733 $ 137,665 $ 500,686 $ 464,322 Third-p
Slide 17: Footnotes
Footnotes: (1) Amortization of software as a service assets is reported in selling, general and administrative expense. (2) Accelerated depreciation for the existing systems being replaced by the upgraded PeopleReady technology platform. (3) Costs associated with upgrading legacy PeopleReady technol