Attached files
| file | filename |
|---|---|
| EX-99.3 - TRUEBLUE INVESTOR PRESENTATION - TrueBlue, Inc. | investorroadshowpresenta.htm |
| 8-K - TRUEBLUE FORM 8-K - TrueBlue, Inc. | tbi2016q2pressrelease.htm |
| EX-99.1 - TRUEBLUE Q2 2016 PRESS RELEASE - TrueBlue, Inc. | tbi2016q2pressreleaseexhib.htm |
www.TrueBlue.com
www.TrueBlue.com
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
that affect 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) increased costs and collateral requirements in connection with our insurance obligations, including workers’
compensation insurance; 5) our continuing ability to comply with the financial covenants of our credit agreement; 6) our ability to
attract and retain qualified employees in key positions or to find temporary and permanent employees with the right skills to fulfill
the needs of our customers; 7) our ability to successfully complete and integrate acquisitions that we may make; and 8) other risks
described in our most recent filings with the Securities and Exchange Commission.
Use of estimates and forecasts:
Any references made to fiscal 2016 are based on management guidance issued July 20, 2016, and are included for informational
purposes only. We assume no obligation to update or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as required by law. Any other reference to future financial estimates are included
for informational purposes only and subject to risk factors discussed in our most recent filings with the Securities Exchange
Commission.
Financial Comparisons
All comparisons are to prior year periods unless stated otherwise.
www.TrueBlue.com
Q2 2016 Highlights
Total revenue growth 7%, low end of our prior outlook
Organic revenue decline of 1%
Continued organic softness in Staffing Services segment
Strong results in Managed Services segment
Net loss of $64M included a non-cash impairment charge of $80
million, net of tax1
Goodwill and intangible assets primarily related to the reduced scope of
services with our largest customer reported by TrueBlue in April 2016
Adjusted EBITDA2 $37 million, above the high end of prior outlook
Cost management actions producing favorable results in both segments
1 Equivalent to $1.91 per diluted share. Pre-tax impairment was $99 million, $67 million within the Staff Management reporting unit related to the reduced scope of services with our largest customer, $32 million related to outlook
changes in the PlaneTechs and HRX reporting units reflecting recent economic and industry conditions.
2 See Appendix for definitions of non-GAAP financial terms.
www.TrueBlue.com
Financial Summary
Excluding company’s largest customer, organic revenue growth was 2%
Pricing and cost management actions position company to improve future
Adjusted EBITDA margin
Amounts in millions, except for earnings per share Q2 2016 Change
Revenue $673 +7% (-1% organic)
Net loss $64 NM
Net loss Per Share $1.53 NM
Adjusted Earnings Per Share1 $0.51 Flat
Adjusted EBITDA
% Margin
$37
5.5%
Flat
-50bps
1 See Appendix for definitions of non-GAAP financial terms.
www.TrueBlue.com
Gross Margin and SG&A Bridges
24.2%
25.3%
0.8% 0.4%
0.1%
Q2 2015 Acquisitions Revenue Mix Bill/Pay & Other Q2 2016
$,118
$,136
$,10 $,8
Q2 2015 Acquisitions Organic Business Q2 2016
SG&A
Amounts in millions
Gross Margin
www.TrueBlue.com
Staffing Services Segment1
Excluding the company’s largest customer, organic revenue grew 1%
Positive results from price increases with new and existing customers
Disciplined cost management across the business, 9 branches
consolidated
Amounts in millions Q2 2016 Change
Revenue $626 +4% (-2% organic)
Adjusted EBITDA $35 -11%
Adjusted EBITDA Margin 5.6% -90bps
1 Staffing Services includes all contingent labor businesses.
www.TrueBlue.com
Managed Services Segment1
Strong organic and acquisition revenue results
New projects advancing organic revenue growth
Higher volume within existing customer base bolstering acquired RPO
revenue
Amounts in millions Q2 2016 Change
Revenue $47 +76% (11% organic)
Adjusted EBITDA $12 +180%
Adjusted EBITDA Margin 26.1% +980bps
1 Managed Services primarily consists of recruitment process outsourcing (RPO). Also includes managed service provider (MSP) solutions.
www.TrueBlue.com
$180
$216
$128
$202
$246
$150
2014 2015 Q2 2016
Net Debt Cash
$101
$77
$126
$21
$30
$22 $123
$107
$148
2014 2015 Q2 2016
Borrowing Availability Cash
Debt and Liquidity Highlights
30% 31%
24%
2014 2015 Q2 2016
Total Debt
Liquidity
Debt to Total
Capital
Amounts in millions
Amounts in millions
Note: Balances as of fiscal period end. Figures on this page may not sum due to rounding.
www.TrueBlue.com
www.TrueBlue.com
Q3 2016 Outlook
Amounts in millions, except for earnings
per share GAAP Adjusted Other
Revenue
Growth Ranges
Total Revenue
Staffing Services
Managed Services
$717M to $733M
5 to 7%
3 to 5%
50 to 60%
Net Income $24M to $26M $31M to $33M
• Assumes income tax rate of about 32%
• Adjustments include $2.7M for acquisition and
integration costs (before tax), $500k for WOTC
processing fees (before tax), $6.7 for acquisition
amortization and earn-out accretion expense (before
tax) and -$3.2 for the tax effect of these adjustments
EPS
$0.57 to $0.62
$0.73 to $0.78
EBITDA
N/A
$51M to $54M
• Q3 2016 Adjusted EBITDA margin outlook of 7.1 to
7.4% v. Q3 2015 of 6.4%
www.TrueBlue.com
www.TrueBlue.com
Non-GAAP Terms and Definitions
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization,
and goodwill and intangible asset impairment charges from net income. Adjusted EBITDA further excludes from EBITDA costs
related to acquisition and integration, and Work Opportunity Tax Credit third-party processing fees. EBITDA and Adjusted EBITDA
are key measures used by management to evaluate performance. EBITDA and Adjusted EBITDA should not be considered
measures of financial performance in isolation or as an alternative to Income from operations in the Consolidated Statements of
Operations in accordance with GAAP, and may not be comparable to similarly titled measures of other companies.
Adjusted net income is a non-GAAP financial measure which excludes from Net income (loss) costs related to acquisition and
integration, amortization of intangible assets of acquired businesses, accretion expense related to acquisition earn-out, goodwill
and intangible asset impairment charges, and Work Opportunity Tax Credit third-party processing fees, tax effect of each
adjustment to GAAP net income (loss), and adjusts income taxes to the expected ongoing effective tax rate. Adjusted net income
should not be considered a measure of financial performance in isolation or as an alternative to net income (loss) in the
Consolidated Statements of Operations in accordance with GAAP, and may not be comparable to similarly titled measures of other
companies.
Adjusted net income per diluted share is a non-GAAP financial measure which excludes from net income (loss) on a per diluted
share basis costs related to goodwill and intangible asset impairment charges, acquisition and integration, Work Opportunity Tax
Credit third-party processing fees, amortization of intangibles of acquired businesses, accretion expense related to acquisition
earn-out, tax effect of each adjustment to GAAP net income (loss), and adjusts income taxes to the expected ongoing effective tax
rate. Adjusted net income per diluted share is a key measure used by management to evaluate performance and communicate
comparable results. Adjusted net income per diluted share should not be considered a measure of financial performance in
isolation or as an alternative to net income per diluted share in the Consolidated Statements of Operations in accordance with
GAAP, and may not be comparable to similarly titled measures of other companies.
See “Financials” in the Investors section of our web site at www.trueblue.com for a full reconciliation of non-GAAP financial
measures to GAAP financial results.
July 20, 2016