Trueblue, Inc. · NYSE:TBI
Trueblue — Q4 2017 Earnings Presentation
17 slides from Trueblue's earnings presentation, Feb 7, 2018
Slide 1: Q4 2017 Earnings Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements
Slide 3: Q4 2017 Summary
1 The fiscal fourth quarter of 2016 included a 14th week and two additional days from moving the week-ending date from Friday to Sunday. The comparable period in 2016 excludes the first week (ended Sept. 30) of the fourth quarter and the two additional days associated with the change in week-ending
Slide 4: Financial Summary
Financial Summary Amounts in millions, except per share data Q4 2017 Fiscal Period Compar- able FY 2017 Fiscal Period Compar- able Revenue $670 -9% -8% Ex-Amazon1 -2% -1% Ex-Amazon1 $2,509 -9% 5% Ex-Amazon1 -7% -3% Ex-Amazon1 Net Income $16.4 -9% -2% $55.5 N/A N/A Net Income Per Diluted Share $0.40
Slide 5: Gross Margin and SG&A Bridges
24.6% 25.1% 0.3% 0.2% Q4 2016 Workers' compensation Core business Q4 2017 Gross Margin and SG&A Bridges SG&A Amounts in millions $145 $133 $10 $4 $3 $1 Q4 2016 Q4-16 14th week Q4-16 acquisition integration & other costs Workforce reduction charge Core business Q4 2017 2 Gross Margin 1 These items ar
Slide 6: Results by Segment
Amounts in millions PeopleReady PeopleManagement PeopleScout Q4-17 FY-17 Q4-17 FY-17 Q4-17 FY-17 Revenue $393 $1,511 $226 $807 $51 $190 Fiscal Period % Growth -9% -7% -12% (-10% ex-Amazon) -14% (-2% ex-Amazon) 11% 5% Comparable % Growth -1% -5% -6% (-4% ex-Amazon) -13% (Flat ex-Amazon) 15% 6% Adj. E
Slide 7: Segment Strategy Highlights
Segment Strategy Highlights Worker component of JobStackTM mobile app fully deployed 1,600 customers on JobStackTM – placing orders, rating associates and entering hours Expect 10,000 customers to be actively using JobStackTM by the end of 2018 Productivity solutions enhance future growth pr
Slide 8: Lower Debt and Ample Liquidity
31% 21% 18% 2015 2016 2017 $216 $103 $90 $30 $35 $29 $246 $138 $119 2015 2016 2017 Net Debt Cash $77 $136 $117 $30 $35 $29 $107 $171 $146 2015 2016 2017 Borrowing Availability Cash Lower Debt and Ample Liquidity Total Debt Liquidity Debt to Total Capital1 Amounts in millions Amounts in millions Note
Slide 9: Outlook
Outlook
Slide 10: Q1 2018 Outlook
Q1 2018 Outlook Revenue Outlook % Growth Notes Total $557 to $572 -2% to 1% • Stable trends for PeopleReady and PeopleManagement • Continued double digit growth for PeopleScout; new revenue recognition standard will create a quarterly timing difference during 2018. Q1 negatively impacted by 3% Peopl
Slide 11: Appendix
A ppendix
Slide 12: Non-GAAP Financial Measures and Non-GAAP Reconciliations
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS 12 Non-GAAP Measure Definition Purpose of Adjusted Measures EBITDA and Adjusted EBITDA EBITDA excludes from net income (loss) the effects of: - interest expense, - income taxes, and - depreciation and amortization. Adjusted EBITDA, further exc
Slide 13: Reconciliation of GAAP Net Income to Adjusted Net Income
1. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE ON A FISCAL AND COMPARABLE PERIOD BASIS (Unaudited) 13 Q4 2017 Q4 2016 Q1 2018 Outlook 13 Weeks Ended 14 Weeks Ended 13-Week Comparable Period (6) 13 Weeks Ended (in thousands, except f
Slide 14: Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA ON A FISCAL AND COMPARABLE PERIOD BASIS (Unaudited) 14 2017 2016 52 Weeks Ended 53 Weeks Ended 52-Week (in thousands)* Dec 31, 2017 Jan 1, 2017 Comparable Period (6) Net income (loss) $ 55,456 $ (15,251 ) $ (16,547 ) Inco
Slide 15: Reconciliation of Revenue and Free Cash Flows
3. RECONCILIATION OF U.S. GAAP REVENUE TO REVENUE EXCLUDING THE COMPANY'S FORMER LARGEST CUSTOMER ON A FISCAL AND COMPARABLE PERIOD BASIS (Unaudited) 15 4. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOWS (Unaudited) 2017 2016 52 Weeks Ended 53 Weeks Ended 52-Week (in t
Slide 16: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
5. RECONCILIATION OF SEGMENT EBITDA TO ADJUSTED SEGMENT EBITDA ON A FISCAL AND COMPARABLE PERIOD BASIS (Unaudited) 16 Q4 2017 Q4 2016 13 Weeks Ended 14 Weeks Ended 13-Week Dec 31, 2017 Jan 1, 2017 Comparable Period (6) (in thousands) PeopleReady PeopleManagement PeopleScout PeopleReady PeopleManagem
Slide 17: Footnotes
17 Footnotes: 1. Other charges for the 13 weeks and 52 weeks ended Dec. 31, 2017, include a workforce reduction charge of $2.5 million primarily associated with employee reductions in the PeopleReady business, offset by $2.3 million of workers' compensation benefit. The workers' compensation benefit