Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TrueBlue, Inc. | d8k.htm |
 2011 Q1
Investor Presentation
Exhibit 99.1 |
 Cautionary
Note About Forward-Looking Statements: Certain statements made by us in this
presentation that are not historical facts or that relate to future plans, events
or performances are forward-looking statements that reflect management’s
current outlook for future periods, including
statements regarding future financial performance.
These forward-looking statements are based upon our current expectations, and our
actual results may differ materially from those described or contemplated in the
forward–looking statements. Factors that may cause our actual results to
differ materially from those contained in the forward-looking statements,
include without limitation the following: 1) national and global
economic conditions, including the impact of changes in national
and global credit markets and
other changes on our customers; 2) our ability to continue to attract and retain
customers and maintain profit margins in the face of new and existing competition;
3) new laws and regulations that could have a materially adverse effect on our
operations and financial results; 4) significant labor disturbances which could
disrupt industries we serve; 5) increased costs and collateral requirements in
connection with our insurance obligations, including workers’ compensation
insurance; 6) the adequacy of our financial reserves; 7) our continuing ability to
comply with financial covenants in our lines of credit and other financing
agreements; 8) our ability to attract and retain competent employees in key
positions or to find temporary employees to fulfill the needs of our customers; 9)
our ability to successfully complete and integrate acquisitions that we may make
from time to time; and 10) other risks described in our filings with the
Securities and Exchange Commission, including our most recent Form 10-K and
Form 10-Q filings. Use of estimates and forecasts:
Any references made to Q-1 2011 or fiscal year 2011 are based on management guidance
issued Feb. 09, 2011, and are included for informational purposes only.
Any reference to future financial
estimates or targets are included for informational purposes only and subject to factors
discussed in our 10-K and 10-Q filings. |
 Company and
Industry Overview |
 4
Investment Highlights
Specialized approach in serving the market
Attractive industry growth prospects
Unique industry-
related upside
Strong operating leverage
Multiple opportunities to increase market share
Solid balance sheet
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 We’re the people making a positive difference.
Every day, we use our specialized brands to find
new opportunities to better serve customers and
workers at all skill levels.
Our vision:
Be
the
Leading
Provider
of
Blue-Collar
Staffing
TrueBlue™
(NYSE:TBI)
2011
Q1
Investor
Presentation |
 6
The
Leading
Provider
of
Blue-Collar
Staffing
Market
size/share
($)
2
Labor Ready
$4 billion (20%)
Spartan Staffing
$7 billion (1%)
CLP
$1 billion (10%)
PlaneTechs
$500 million (35%)
Centerline
$800 million (5%)
TrueBlue™
(NYSE:TBI) 2010 Q4 Investor Presentation
1
2010 revenue rounded to the nearest $5 million.
2
Staffing
Industry
Analysts
2010
forecast,
TrueBlue
estimates.
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor
Presentation
Revenues in millions ($)
1
Labor Ready: $730
Spartan Staffing: $130
CLP: $100
PlaneTechs: $150
Centerline: $40 |
                  “Award of
Excellence”
“Hot Growth
Company”
“National Universal
Agreement to Mediate”
“Forbes Most
Trustworthy
Companies “
“VIP program to
promote employee
fairness and
safety”
“Platinum 400”
“Best practices by
DHS/ICE Partner”
Recognized
as
a
Credible
Industry
Leader
TrueBlue™
(NYSE:TBI)
2011
Q1
Investor
Presentation
7 |
 8
Sales by Industry
Construction
37%
22%
Manufacturing
17%
20%
Transportation
9%
12%
Wholesale
Trade
10%
9%
Retail
8%
7%
Services
&
Other
19%
16%
Aviation
0%
14%
2006
2010 TrueBlue™
(NYSE:TBI) 2011 Q1 Investor
Presentation |
 9
Temporary
Staffing
$75 billion
Staffing Industry Analysts 2010 forecast, rounded
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor
Presentation |
 2010 Market
10
$20B
2015 Market Forecast
$30B
Blue-collar
Staffing
–
Strong
Future
Growth
Source:
Staffing
Industry
Analysts,
Moody’s
economic
forecasts,
TrueBlue
estimates
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor
Presentation |
 Industry Growth Drivers
11
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 12
Strategic Priorities
Focus
Why
How
Organic
Growth –
Existing
Geographies
+++
Operating
Leverage
Brand Specialization
Brand Leadership
Intra-brand Industry Specialization
Service
Excellence
Geographic
Expansion
+
Increase
Market
Share
On-site Locations
Multi-Brand Locations
Acquisitions
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation |
 13
Operating Leverage of Organic Growth
Organic growth from existing geographies = 15% -
18% incremental
operating margins
*
Example calculation of incremental operating margins:
Incremental Revenue
100
$
Gross Profit Generated
26
$
Operating Expense
Associated with Incremental Revenue
(8) -
(11)
$
Incremental Operating Income
18
$15 -
*
Reflects
an
approximation
of
the
incremental
operating
margin
that
management
believes
can
be
achieved
in
2011,
in
general,
with
favorable
revenue
growth
and
current
gross
margin,
revenue
mix
and
geographic
footprint.
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 Geographic Expansion Opportunities
14
Existing markets
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
  15
Strategic Acquisitions
Qualitative Factors
Quantitative Factors
•
Blue-collar
•
Existing Market Tuck-ins
•
New Geographic Markets
•
Cultural Alignment
•
Return on Investment
•
Financing
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 Financial
Review |
   17
Financial Targets
Revenue
Growth
Market
>
EBITDA
%
7%
>
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
*See disclosure and reconciliation of EBITDA on slide 25. |
 18
Financial Summary
** 2010 included a 53
rd
week which contributed 1% to revenue growth.
2010**
2009
Growth %
Revenue
$1,149
$1,018
13%
Gross profit
$ 303
$ 291
4%
% of Revenue
26.4%
28.6%
SG&A expense
$ 259
$ 262
-1%
% of Revenue
22.5%
25.8%
EBITDA*
$ 45
$ 29
55%
% of Revenue
3.9%
2.8%
Net income
$ 20
$ 9
122%
% of Revenue
1.7%
0.9%
Earnings per share
$ 0.46
$ 0.20
129%
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
*See disclosure and reconciliation of EBITDA on slide 25.
|
 19
Recent Revenue Trends
-5%
0%
5%
10%
15%
20%
25%
30%
Q2 '10
Q3 '10
Q4 '10 *
Q1 '11
Forecast
Revenue Growth
-5%
0%
5%
10%
15%
20%
25%
30%
Q2 '10
Q3 '10
Q4 '10 *
Q1 '11
Forecast
Revenue Growth excluding
Largest Customer
*
Q4
2010
Revenue
Growth
excludes
14
th
week
for
comparative
purposes.
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 20
Strong Balance Sheet
Cash and investments
$163
$124
Current ratio
3.4
2.9
Restricted cash
$120
$124
Workers’
comp reserve
$187
$190
Debt
$ 0
$ 1
Shareholders’
equity
$313
$285
Q-4 2010 Q-4 2009
$ in millions.
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 21
Investment Highlights
Specialized approach in serving the market
Attractive industry growth prospects
Unique industry-related upside
Strong operating leverage
Multiple opportunities to increase market share
Solid balance sheet
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 Appendix |
 23
Blue-Collar Specialties
General Labor
Postions filled on-demand
Numerous workers available
Convenient community branches
Logistics & Manufacturing
Specialized skills for manufacturing & logistics
Longer term assignments and temp to perm
On-site management of employees
Skilled Trades
Skilled tradespeople for a variety of end markets
Rigorous assessment of skill and trades experience
Long-term, multiple project opportunities
Aviation Mechanics
Mechanics and technicians for aviation
In-depth screening for aviation certification
Centralized recruiting and assignment nationwide
CDL Drivers
Temporary staffing or driver management services
Comprehensive application and hiring process
24/7 central dispatch
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
|
 24
0
200
400
600
800
1,000
1,200
1,400
1,600
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
20
40
60
80
100
120
140
Historical Summary
Annual Revenue and EBITDA*
in $M
in $M
No. of Branches
200 316 486
687 816 756 748 779 815
887 912 894
850 754 721 2008
excludes
goodwill
and
intangible
asset
impairment
charges.
See
10-K
for
additional
information.
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
*See disclosure and reconciliation of EBITDA on slide 25.
|
 25
Reconciliation of EBITDA to Net Income
*EBITDA is non-GAAP financial measure which excludes interest, taxes,
depreciation and amortization from net income. EBITDA is a key measure used
by management in evaluating performance. EBITDA should not be considered a measure of financial performance in
isolation or as an alternative to net income (loss) in the Statement of Operations
in accordance with GAAP, and, as presented, may not be comparable to
similarly titled measures of other companies. 2010**
2009**
Net income
$ 20
$ 9
Income tax expense
9
5
Income before tax expense
29
14
Interest and other income, net
(1)
(2)
Income from operations
28
12
Depreciation & Amortization
16
17
EBITDA*
$ 45
$ 29
TrueBlue™
(NYSE:TBI) 2011 Q1 Investor Presentation
**Some amounts may not sum due to rounding. |