Trueblue, Inc. · NYSE:TBI
Trueblue — Q4 2016 Earnings Presentation
14 slides from Trueblue's earnings presentation, Feb 8, 2017
Slide 1: www.TrueBlue.com
www.TrueBlue.com
Slide 2: Forward-Looking Statements
www.TrueBlue.com 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
Slide 3: Q4 2016 Summary
www.TrueBlue.com Q4 2016 Summary 14-week revenue and net income decline of -9% and -36%, respectively Comparable 13-week revenue1 decline of -14%, or +5% growth excluding Amazon Comparable 13-week revenue of $701M v. comparable 13-week outlook of $670M to $686M Comparable 13-week adjusted EBITDA
Slide 4: Financial Summary
www.TrueBlue.com 4 Comparable basis excludes the 14th week from Q4 2016 and Fiscal Year 2016 to be comparable to the prior year 13-week Q4 and 52-week fiscal year. 2 Organic calculations exclude acquired businesses from results. Financial Summary The definition of adjusted net income1 changed and
Slide 5: Gross Margin and SG&A Bridges
www.TrueBlue.com Gross Margin and SG&A Bridges SG&A Amounts in millions Gross Margin 22.8% 24.6% 0.3% 1.1% 0.4% Q4 2015 Acquisitions Staffing PeopleScout Q4 2016 $141 $145 $11 $2 $[VALUE] $16 Q4 2015 Acquisitions EBITDA Addbacks 14th Week Organic Business Q4 2016
Slide 6: New segment reporting enhances transparency
www.TrueBlue.com New segment reporting enhances transparency Now reporting three segments - aligns with new brand structure and increases transparency for investors Less unallocated corporate expense – more expense to segments enhancing accountability New Segments: FY 2016 Mix by Segment: Genera
Slide 7: PeopleReady Segment
www.TrueBlue.com PeopleReady Segment Amounts in millions Q4 2016 Y/Y Change FY 2016 Y/Y Change Revenue $431 -1% $1,629 Flat Adjusted EBITDA $26 -20% $109 -14% Revenue – Comparable Basis $411 -6% $1,609 -1% Adjusted EBITDA – Comparable Basis % Margin $26 6.3% -21% -120 bps $109 6.8% -14% -100 bps I
Slide 8: PeopleManagement Segment
www.TrueBlue.com PeopleManagement Segment Comparable 13-week revenue + 23%, excluding Amazon Comparable 13-week organic revenue + 4%, excluding Amazon Amounts in millions Q4 2016 Y/Y Change FY 2016 Y/Y Change Revenue $258 -26% -35% organic $940 -3% -18% organic Adjusted EBITDA $12 -38% $28 -25%
Slide 9: PeopleScout Segment
www.TrueBlue.com PeopleScout Segment Amounts in millions Q4 2016 Y/Y Change FY 2016 Y/Y Change Revenue $46 69% 6% organic $181 73% 9% organic Adjusted EBITDA $7 n.m. $34 268% Revenue – Comparable Basis $44 62% 2% organic $179 71% 8% organic Adjusted EBITDA – Comparable Basis % Margin $7 16.3% n.m. +
Slide 10: Debt and Liquidity – Substantial Improvements in 2016
www.TrueBlue.com $180 $216 $103 $202 $246 $138 2014 2015 2016 Net Debt Cash $101 $77 $136 $21 $30 $35 $123 $107 $171 2014 2015 2016 Borrowing Availability Cash Debt and Liquidity – Substantial Improvements in 2016 30% 31% 21% 2014 2015 2016 Total Debt Liquidity Debt to Total Capital In millions In m
Slide 11: Q1 2017 Outlook
www.TrueBlue.com Q1 2017 Outlook Amounts in millions, except per share data Outlook Notes Revenue Growth Ranges Total Revenue PeopleReady PeopleManagement PeopleScout $560M to $575M -13% to -11% -7% to -4% -24% to -22% -10% to 0% • Total revenue decline excluding our largest customer of 2% to 5% Net
Slide 12: www.TrueBlue.com
www.TrueBlue.com
Slide 13: Successful performance of acquisitions
www.TrueBlue.com Successful performance of acquisitions Strategic Rationale Great complement to existing business Productivity-based business model provides unique client value proposition Competitively differentiated workforce solution Service offering highly embedded within custome
Slide 14: Non-GAAP Terms and Definitions
www.TrueBlue.com Non-GAAP Terms and Definitions EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization. Adjusted EBITDA further excludes from EBITDA, costs related to acquisition and integration, goodwill and intangible asset impair