Slide 1: Q1 2024 Earnings
Q1 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: Q1 2024 Overview
Q1 2024 Overview Total revenue -13% ▪ Clients continued to be cost conscious and selective in the roles they chose to fill ▪ Broad-based softness in revenue trends with the exception of renewable energy projects Net loss was $2 million v. net loss of $4 million in Q1 2023 due largely to favorable ta
Slide 4: Financial summary
Financial summary Amounts in millions, except per share data Q1 2024 Q1 2023 Change Revenue $403 $465 -13% Net loss -$1.7 -$4.3 NM Net loss per diluted share -$0.05 -$0.13 NM Net loss margin -0.4% -0.9% +50 bps Adjusted net income (loss)1,2 $0.8 -$2.3 NM Adj. net income (loss) per diluted share $0.0
Slide 5: Gross margin and SG&A bridges
Gross margin and SG&A bridges 26.5% 24.7% Gross margin -1.5% -0.2% -0.1% Q1 2023 Mix Workers’ Bill / Pay Q1 2024 compensation spread Amounts in millions $123 $2 $107 -$18 SG&A Q1 2023 Core business Adjusted EBITDA Q1 2024 exclusions1 1 Represents the year-over-year change in Adjusted EBITDA exclusio
Slide 6: Q1 2024 Results by segment
Q1 2024 Results by segment Amounts in millions PeopleReady PeopleScout PeopleManagement Revenue $223 $46 $134 % Change -12% -33% -7% Segment profit1 -$5 $5 $3 % Change NM -45% NM % Margin -2.3% 10.5% 2.1% Change -260 bps -230 bps +220 bps Notes: ▪ Revenue: ▪ Revenue: ▪ Revenue: • Softness across mos
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% $50 $72 2% 2% $61 $176 $148 $294 $293 $36 $34 $62 $17 $140 $10 $86 2021 2022 2023 Q1 2024 2021 2022 2023 YTD Q1 2024
Slide 8: Outlook
Outlook
Slide 9: Select outlook information
Select outlook information Item Q2 2024 Commentary $400M to $425M Assumes current market conditions continue into Q2 with a less challenging prior year comparison Revenue -16% to -10% v. prior year and includes -1 point from Canada sale. -140 to -100 Gross margin decline due to changes in business m
Slide 10: Appendix
Appendix
Slide 11: 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 12: Reconciliation of U.S. 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) Mar 31, 2024 Mar 26, 2023 Net loss $ (1,698) $ (4,289) Gain on divestiture (1) (745) — Amortization of intangibl
Slide 13: Reconciliation of U.S. 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) Mar 31, 2024 Mar 26, 2023 Net loss $ (1,698) $ (4,289) Income tax benefit (12,212) (640) Interest and other (income) expense, net (1,599) (1,014) Depreciation and amortization 7,958 6,411
Slide 14: Reconciliation of 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 (in thousands) Mar 31, 2024 Mar 26, 2023 Selling, general and administrative expense $ 106,937 $ 122,645 Third-party processing fees for hiring tax credits (5) (90) (120) Am
Slide 15: Footnotes
Footnotes: (1) Gain on divestiture of PeopleReady’s Canadian staffing business, sold late February 2024. (2) Costs associated with upgrading legacy PeopleReady technology. (3) Other adjustments for the 13 weeks ended March 31, 2024 and March 26, 2023 primarily include workforce reduction costs of $1