Slide 1: Q3 2019 Earnings
Q3 2019 Earnings October 2019
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: Q3 2019 summary
Q3 2019 summary Revenue near high-end of company outlook ▪ Large project contributed $11M of additional revenue compared to outlook ▪ Total revenue -6% v. -4% in Q2 2019 ▪ Organic revenue1 -6% v. -6% in Q2 2019 Another quarter of EPS growth ▪ EPS +11% and adjusted EPS1 -4% ▪ EPS and adjusted EPS exc
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q3 2019 % Change Revenue $637 -6% Net Income $26.7 9% Net Income Per Diluted Share $0.68 11% Adjusted Net Income¹ $29.8 -6% Adj. Net Income Per Diluted Share $0.76 -4% Adjusted EBITDA¹ $39.3 -10% Adjusted EBITDA Margin 6.2% -20 bps www.Tru
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 27.1% 26.6% Gross Margin -0.2% -0.3% Q3 2018 Staffing RPO Q3 2019 Amounts in millions $145 $131 -$3 SG&A -$11 Q3 2018 Adjusted EBITDA Core business Q3 2019 exclusions¹ www.TrueBlue.com 1 Adjusted EBITDA further excludes from EBITDA Work Opportunity Tax Credit third-part
Slide 6: Q3 2019 results by segment
Q3 2019 results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $413 $159 $64 % Growth -4% -12% -9% Segment Profit1 $31 $3 $11 % Growth -1% -45% -14% % Margin 7.5% 2.1% 16.7% Change 20 bps -130 bps -100 bps ¬ Revenue was -4% v. -2% last ¬ Revenue was -12% v. -14% last
Slide 7: Leading our business into a digital future
Leading our business into a digital future TM JobStack Industry-leading mobile app that connects our Industry-leading platform for sourcing, screening associates with jobs and simplifies client ordering and delivering a permanent workforce Before After ¬ 87% worker adoption ¬ 30% applicant ¬ 80%+ ap
Slide 8: Strong balance sheet and return of capital
Strong balance sheet and return of capital Total Debt Debt to Total Capital1 Amounts in millions Net Debt Cash $138 $119 $35 $29 $80 21% 18% $103 $47 $44 $90 12% 7% $24 $33 $20 2016 2017 2018 Q3 2019 2016 2017 2018 Q3 2019 Liquidity Share Repurchase % of Free Cash Flow2 Amounts in millions Borrowing
Slide 9: Outlook
Outlook | trueblue THE PEOPLE COMPANY
Slide 10: Q4 outlook
Q4 outlook Amounts in millions, except per share data Revenue Notes Total TrueBlue¹ $587 to $612 l Previously disclosed client headwinds impacting Q4: Revenue headwind of $9M (-1% growth impact) -10% to -6% growth PeopleReady $367 to $378 -8% to -5% growth PeopleManagement $165 to $174 l Client head
Slide 11: Select 2019 outlook information
Select 2019 outlook information Amounts in millions n PeopleScout Clients¹ n Retail Client (PeopleManagement) $26 n Amazon (PeopleManagement) n PlaneTechs (PeopleManagement) Revenue Headwinds 5 $65 18 $15 $16 12 3 16 6 $9 6 3 24 8 8 6 6 8 Q1-19 (Actual) Q2-19 (Actual) Q3-19 (Actual) Q4-19 FY 2019 Se
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 to adjusted net income
1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE (Unaudited) Q3 2019 Q3 2018 Q4 2019 Outlook 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands, except for per share data) Sep 29, 2019 Sep 30, 2018 Dec 29, 2019 Net income $ 26,676 $
Slide 15: Reconciliation of revenue to organic revenue and free cash flows
3. RECONCILIATION OF U.S. GAAP REVENUE TO ORGANIC REVENUE (Unaudited) Q3 Q2 2019 2018 2019 2018 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended (in thousands) Sep 29, 2019 Sep 30, 2018 Jun 30, 2019 Jul 1, 2018 Revenue from services $ 636,793 $ 680,371 $ 588,594 $ 614,301 Acquisition reve
Slide 16: Footnotes
Footnotes: 1. Adjustment to the gain on the divestiture of our PlaneTechs business due to the finalization of costs incurred. PlaneTechs was sold mid-March 2018. 2. Amortization of intangible assets of acquired businesses. 3. Acquisition/integration costs for the acquisition of TMP Holding LTD (“TMP