Slide 1: Q2 2024 Earnings
Q2 2024 EARNINGS trueblue THE PEOPLE COMPANY®
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This presentation contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in d
Slide 3: Q2 2024 Overview
Q2 2024 Overview Total revenue down 17% ▪ Macroeconomic uncertainty continues to weigh on customers causing softness in revenue trends with the exception of renewable energy projects and commercial driving services Net loss was $105 million ▪ Included a non-cash impairment charge of $45 million afte
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q2 2024 Q2 2023 Change Revenue $396 $476 -17% Net loss -$104.7 -$7.3 NM Net loss per diluted share -$3.45 -$0.24 NM Net loss margin -26.4% -1.5% -25 pp Adjusted net income (loss)1,2 -$10.7 $3.5 NM Adj. net income (loss) per diluted share -
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 27.4% 0.7% 26.4% Gross margin -1.2% -0.5% Q2 2023 Mix Bill / Pay COVID-19 Q2 2024 spread government subsidies Amounts in millions $121 $97 -$19 SG&A -$5 Q2 2023 Core business Adjusted EBITDA Q2 2024 exclusions1 1 Represents the year-over-year change in Adjusted EBITDA e
Slide 6: Q2 2024 Results by segment
Q2 2024 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $223 $41 $132 % Change -19% -31% -6% Segment profit1 $0 $3 $3 % Change -95% -61% +51% % Margin 0.2% 8.4% 2.6% Change -280 bps -640 bps +100 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • Softness across mo
Slide 7: Strong balance sheet with zero debt and ample liquidity
Strong balance sheet with zero debt and ample liquidity Amounts in millions Liquidity Share repurchases 1 2 Borrowing availability Cash Share repurchases Buyback ratio $365 $344 6% 5% 4% $50 $72 2% $61 $148 $158 $294 $293 $26 $34 $62 $17 $17 $132 $86 2021 2022 2023 Q2 2024 2021 2022 2023 YTD Q2 2024
Slide 8: Outlook
Outlook
Slide 9: Select outlook information
Select outlook information Item Q3 2024 Commentary $380M to $405M Assumes current market conditions continue into Q3 and includes -1 percentage point from Canada Revenue -20% to -14% v. prior year sale. -60 to -20 Gross margin Gross margin decline due primarily to changes in business mix. bps v. pri
Slide 10: Decisive cost actions to deliver efficiencies and enhanced long-term profitability
Decisive cost actions to deliver efficiencies and enhanced long-term profitability Amounts in millions Simplified organizational structure 1 SG&A Adjusted SG&A Enhanced automation $124 $121 $121 $115 $99 - $103 $95 - $99 Greater efficiencies Q3 2022 Q3 2023 Q3 2024 Outlook Increased scalability 1 Re
Slide 11: Appendix
Appendix
Slide 12: 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 13: Reconciliation of GAAP net loss to adjusted net income (loss)
1. RECONCILIATION OF U.S. GAAP NET 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 30, 2024 Jun 25, 2023 Net loss $ (104,710) $ (7,323) Amortization of intangible assets 1,369 1,274 Goodwill
Slide 14: Reconciliation of GAAP net loss to EBITDA and adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Jun 30, 2024 Jun 25, 2023 Net loss $ (104,710) $ (7,323) Income tax expense 46,491 1,345 Interest and other (income) expense, net (1,741) (578) Depreciation and amortization 7,691 6,280 EB
Slide 15: 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) Q2 2024 Q2 2023 Q3 2024 Outlook 13 weeks ended (in thousands) Jun 30, 2024 Jun 25, 2023 Sep 29, 2024 Selling, general and administrative expense $ 97,018 $ 121,282 $ 99,400 — $ 103,400 Thi
Slide 16: Footnotes
Footnotes: 1. Costs associated with upgrading legacy PeopleReady technology. 2. COVID-19 government subsidies net of related fees ($2.9 million in cost of services and $6.8 million in selling, general and administrative expense). 3. Other adjustments for the 13 weeks ended June 30, 2024 and June 25,