Form 8-K TrueBlue, Inc. For: Oct 21
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 21, 2015
TRUEBLUE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Washington
(State or Other Jurisdiction
of Incorporation)
001-14543 | 91-1287341 | |
(Commission File Number) | (IRS Employer Identification No.) | |
1015 A Street, Tacoma, Washington | 98402 | |
(Address of Principal Executive Offices) | (Zip Code) | |
(253) 383-9101
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On October 21, 2015, TrueBlue, Inc. (the “Company”) issued a press release (the “Press Release”) reporting its financial results for the third quarter ended September 25, 2015, and revenue and earnings guidance for the fourth quarter of 2015, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference. Also attached to this report as Exhibit 99.2 is a slide presentation relating to the financial results for the third quarter ended September 25, 2015 (the “Earnings Results Presentation”), which will be discussed by management of the Company on a live conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Wednesday, October 21, 2015. The Earnings Results Presentation is also available on the Company's website, www.trueblue.com.
In accordance with General Instruction B.2. of Form 8-K, the information contained above in this report (including the Press Release and the Earnings Results Presentation) shall not be deemed “Filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the Press Release or the Earnings Results Presentation be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed a determination or an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.
Item 7.01. | Regulation FD Disclosure. |
We are also attaching our Q4 2015 Investor Presentation (the "Investor Presentation") to this report as Exhibit 99.3, which we will reference in our Q3 2015 earnings results discussion and which may be used in future investor conferences. The Investor Presentation is also available on the Company's website, www.trueblue.com.
In accordance with General Instruction B.2. of Form 8-K, the information contained above in this report (including the Investor Presentation) shall not be deemed “Filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the Investor Presentation be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed a determination or an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
99.1 | Press Release dated October 21, 2015 |
99.2 | Earnings Results Presentation for October 21, 2015 conference call |
99.3 | Investor Presentation |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRUEBLUE, INC. | ||||
(Registrant) | ||||
Date: | October 21, 2015 | By: | /s/ Derrek L. Gafford | |
Derrek L. Gafford | ||||
Chief Financial Officer and Executive Vice President | ||||
TRUEBLUE REPORTS THIRD QUARTER 2015 RESULTS
TACOMA, WA-Oct. 21, 2015--TrueBlue, Inc. (NYSE: TBI) announced today that revenue for the third quarter of 2015 was $684 million, an increase of 8 percent, compared to revenue of $633 million for the third quarter of 2014. Adjusted net income per share* for the third quarter of 2015 was $0.54, up from $0.53 a year ago, an increase of 2 percent.
“Our team delivered solid organic revenue results this quarter,” said TrueBlue CEO Steve Cooper. “The pace of growth took a significant step up compared to our growth in the first half of the year. We are especially pleased that the improved results came from most geographies and industries including construction. We also saw improvement with small to medium-sized customers and continued strength with national customers.
“The appeal of our specialized service offerings continues to grow in a tightening labor market and we expect another solid quarter of growth as we finish 2015,” Cooper added. “We are excited about the opportunities for increased demand in our services during 2016 and the powerful earnings growth our business can produce.”
For the fourth quarter of 2015, the company estimates revenue in the range of $738 million to $753 million and adjusted net income per share of $0.58 to $0.64.
Management will discuss third quarter 2015 results on a conference call at 2 p.m. PT (5 p.m. ET), today, Wednesday, Oct. 21. The conference call can be accessed on TrueBlue’s website: www.trueblue.com.
*See the financial statements accompanying the release and the company’s website for more information on non-GAAP terms.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions, helping clients improve growth and performance by providing staffing, workforce management, and recruitment process outsourcing solutions. The company’s specialized workforce solutions meet clients’ needs for a reliable, efficient workforce in a wide variety of industries. TrueBlue connects as many as 750,000 people to work each year. Learn more at www.trueblue.com.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Examples of such factors can be found in our reports filed with the SEC, including the information under the heading ‘Risk Factors’ in our Annual Report on Form 10-K for the fiscal year ended Dec. 26, 2014. Any forward-looking statement speaks only as of the date on which it is made, and 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.
Contact:
Derrek Gafford, EVP & CFO
253-680-8214
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
September 25, 2015 | September 26, 2014 | September 25, 2015 | September 26, 2014 | ||||||||||||
Revenue from services | $ | 683,918 | $ | 633,365 | $ | 1,884,947 | $ | 1,482,655 | |||||||
Cost of services | 515,051 | 473,766 | 1,434,278 | 1,103,914 | |||||||||||
Gross profit | 168,867 | 159,599 | 450,669 | 378,741 | |||||||||||
Selling, general and administrative expenses | 125,117 | 120,318 | 354,569 | 308,654 | |||||||||||
Depreciation and amortization | 10,498 | 9,719 | 31,415 | 20,126 | |||||||||||
Income from operations | 33,252 | 29,562 | 64,685 | 49,961 | |||||||||||
Interest and other income (expense), net | (366 | ) | (409 | ) | (1,102 | ) | 385 | ||||||||
Income before tax expense | 32,886 | 29,153 | 63,583 | 50,346 | |||||||||||
Income tax expense | 12,796 | 8,243 | 20,504 | 11,696 | |||||||||||
Net income | $ | 20,090 | $ | 20,910 | $ | 43,079 | $ | 38,650 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.51 | $ | 1.05 | $ | 0.95 | |||||||
Diluted | $ | 0.48 | $ | 0.51 | $ | 1.04 | $ | 0.94 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 41,296 | 40,793 | 41,189 | 40,701 | |||||||||||
Diluted | 41,620 | 41,038 | 41,546 | 40,971 | |||||||||||
TRUEBLUE, INC.
SEGMENT DATA
(Unaudited, in thousands)
13 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
Revenue from services | |||||||
Staffing Services | $ | 656,619 | $ | 608,543 | |||
Managed Services | 27,299 | 24,822 | |||||
Total Company | $ | 683,918 | $ | 633,365 | |||
EBITDA (1) | |||||||
Staffing Services | $ | 50,290 | $ | 45,698 | |||
Managed Services | 3,175 | 3,723 | |||||
53,465 | 49,421 | ||||||
Corporate unallocated | (9,715 | ) | (7,801 | ) | |||
Adjusted EBITDA (1) | 43,750 | 41,620 | |||||
Non-recurring acquisition and integration costs (2) | — | (2,339 | ) | ||||
43,750 | 39,281 | ||||||
Depreciation and amortization | 10,498 | 9,719 | |||||
Interest expense, net | 366 | 409 | |||||
Income before tax expense | $ | 32,886 | $ | 29,153 | |||
(1) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating 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, as presented, may not be comparable to similarly titled measures of other companies. |
(2) | Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014. |
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
September 25, 2015 | December 26, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 23,232 | $ | 19,666 | |||
Marketable securities | — | 1,500 | |||||
Accounts receivable, net | 362,016 | 359,903 | |||||
Other current assets | 28,546 | 34,738 | |||||
Total current assets | 413,794 | 415,807 | |||||
Property and equipment, net | 55,995 | 61,392 | |||||
Restricted cash and investments | 181,910 | 168,426 | |||||
Other assets, net | 410,213 | 421,046 | |||||
Total assets | $ | 1,061,912 | $ | 1,066,671 | |||
Liabilities and shareholders' equity | |||||||
Current liabilities | $ | 213,242 | $ | 187,230 | |||
Long-term debt, less current portion | 111,689 | 199,383 | |||||
Other long-term liabilities | 219,699 | 210,724 | |||||
Total liabilities | 544,630 | 597,337 | |||||
Shareholders' equity | 517,282 | 469,334 | |||||
Total liabilities and shareholders' equity | $ | 1,061,912 | $ | 1,066,671 | |||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
39 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 43,079 | $ | 38,650 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 31,415 | 20,126 | |||||
Provision for doubtful accounts | 4,483 | 9,619 | |||||
Stock-based compensation | 8,283 | 8,902 | |||||
Deferred income taxes | (6,029 | ) | 6,077 | ||||
Other operating activities | 20 | (148 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (6,597 | ) | (26,391 | ) | |||
Income taxes | 9,673 | (3,179 | ) | ||||
Other assets | (3,685 | ) | (6,510 | ) | |||
Accounts payable and other accrued expenses | 17,453 | (1,687 | ) | ||||
Accrued wages and benefits | 10,315 | 11,373 | |||||
Workers’ compensation claims reserve | 10,024 | 532 | |||||
Other liabilities | 1,883 | 2,539 | |||||
Net cash provided by operating activities | 120,317 | 59,903 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (12,590 | ) | (10,213 | ) | |||
Acquisition of businesses, net of cash acquired | — | (307,972 | ) | ||||
Purchases of marketable securities | — | (25,057 | ) | ||||
Sales and maturities of marketable securities | 1,500 | 43,917 | |||||
Change in restricted cash and cash equivalents | 13,070 | 10,020 | |||||
Purchases of restricted investments | (38,818 | ) | (18,196 | ) | |||
Maturities of restricted investments | 11,047 | 10,588 | |||||
Net cash used in investing activities | (25,791 | ) | (296,913 | ) | |||
Cash flows from financing activities: | |||||||
Net proceeds from stock option exercises and employee stock purchase plans | 1,164 | 1,673 | |||||
Common stock repurchases for taxes upon vesting of restricted stock | (3,725 | ) | (3,021 | ) | |||
Net change in revolving credit facility | (85,994 | ) | 146,994 | ||||
Payments on debt and other liabilities | (1,700 | ) | (1,700 | ) | |||
Other | 1,134 | 1,242 | |||||
Net cash provided by (used in) financing activities | (89,121 | ) | 145,188 | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,839 | ) | (937 | ) | |||
Net change in cash and cash equivalents | 3,566 | (92,759 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period | 19,666 | 122,003 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 23,232 | $ | 29,244 | |||
TRUEBLUE, INC.
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO ADJUSTED NET INCOME PER DILUTED SHARE
(Unaudited, in thousands, except for per share data)
13 Weeks Ended | |||||||
September 25, 2015 | September 26, 2014 | ||||||
GAAP net income | $ | 20,090 | $ | 20,910 | |||
Income tax expense | 12,796 | 8,243 | |||||
Interest expense, net | 366 | 409 | |||||
Income from operations | 33,252 | 29,562 | |||||
Depreciation and amortization | 10,498 | 9,719 | |||||
EBITDA (4) | 43,750 | 39,281 | |||||
Non-recurring acquisition and integration costs (1) | — | 2,339 | |||||
Adjusted EBITDA (4) | $ | 43,750 | $ | 41,620 | |||
GAAP net income per diluted share | $ | 0.48 | $ | 0.51 | |||
Non-recurring acquisition and integration costs, net of tax (1) | — | 0.03 | |||||
Amortization of intangible assets of acquired businesses, net of tax (2) | 0.07 | 0.07 | |||||
Adjust income taxes to a marginal rate (3) | (0.01 | ) | (0.08 | ) | |||
Adjusted net income per diluted share (5) | $ | 0.54 | $ | 0.53 | |||
Diluted weighted average shares outstanding | 41,620 | 41,038 | |||||
(1) | Non-recurring acquisition and integration costs consist of the acquisition and integration of Seaton, which was completed on June 30, 2014, the first business day of our third quarter of fiscal 2014. |
(2) | Amortization of intangible assets of acquired businesses. |
(3) | Adjust income taxes to a marginal rate of 40%. |
(4) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating 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, as presented, may not be comparable to similarly titled measures of other companies. |
(5) | Adjusted net income per diluted share is a non-GAAP financial measure which excludes from net income on a per diluted share basis non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions, net of tax, amortization of intangibles of acquired businesses, net of tax and adjusts income taxes to a marginal rate of 40%. Adjusted net income per diluted share is a key measure used by management in evaluating performance and communicating 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, as presented, may not be comparable to similarly titled measures of other companies. |
OCT. 21, 2015 Q3 2015 Earnings Results
FORWARD-LOOKING STATEMENT 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 2015 or 2016 are based on management guidance issued October 21, 2015, and are included for informational purposes only and are not an update or reaffirmation. 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. Q3 2015 Earnings Results | Oct. 21, 2015 2
Q3 2015 HIGHLIGHTS AND TRENDS • Strong revenue results – exceeded expectation o 8% growth (all organic) o Significant step-up from Q1 and Q2 2015 growth rates o Widespread improvement including most service lines and geographies o Improving trends across most industries including construction o Continued strong results with national sales customers o Improving trends with small to medium-sized customers • Continued strength in October revenue trends 3 Q3 2015 Earnings Results | Oct. 21, 2015
Q3 2015 Financial Summary 4 Amounts in millions, except for earnings per share $684 +8% $44 +5% -20bps $0.54 +2% • $2 million of new customer-related costs in Q3 2015 related to future revenue • Workers’ compensation 20 bps higher (Q3 2014 reserve benefit) • Excluding the items above: o Adjusted EBITDA growth was 13% o Adjusted EBITDA margin was 6.9% 1 See Appendix for definitions of non-GAAP financial terms. Q3 2015 Earnings Results | Oct. 21, 2015
5 REVENUE TRENDS & GROSS MARGIN / SG&A BRIDGES 0% 1% 8% Q1 2015 Q2 2015 Q3 2015 Year-over-Year Organic Revenue Growth 25.2% 24.7% 0.3% 0.2% Q3 2014 Revenue Mix / Other* Workers’ Compensation** Q3 2015 $120 $125 $2 $2 $5 Q3 2014 Q3 2014 Integration Costs New Customer- Related Costs Variable and Other Costs Q3 2015 Gross Margin Bridge SG&A Bridge * Approximately 30 bps of payroll tax and related benefits received in Q3 2014 and Q3 2015 resulting in neutral impact to Q3 2015 gross margin. ** Lower expense in Q3 2014 from beneficial reserve adjustment. Q3 2015 expense as a percentage of revenue consistent with Q1 and Q2 2015. Amounts in millions
Q3 2015 – Staffing Services Segment 6 Amounts in millions, except for earnings per share $657 +8% $50 +10% +10bps • Broad-based growth across most geographies, service lines, and industries o Improving results in construction o Green energy business contributed to growth • Excluding new customer-related costs and using a comparable workers’ comp. rate: o Adjusted EBITDA growth was 17% o Adjusted EBITDA margin was 8.2% Note: Staffing Services includes all contingent labor business. 1 See Appendix for definitions of non-GAAP financial terms. Q3 2015 Earnings Results | Oct. 21, 2015
Q3 2015 – Managed Services Segment 7 Amounts in millions, except for earnings per share $27 +10% $3 -15% -340bps • Revenue growth 14% on a constant currency basis • Revenue exceeded expectations due to new RPO customers • EBITDA margin impacted by currency headwinds (~100bps) and new RPO customer implementations • Strong revenue pipeline for 2016 Note: Managed Services includes recruitment process outsourcing (RPO) and managed service provider businesses. International RPO = 15% of Managed Services annual revenue. Q3 2015 Earnings Results | Oct. 21, 2015
0% 8% 30% 18% 2012 2013 2014 Q3 2015 -$130 -$105 $180 $91 No Debt $32 $202 $114 2012 2013 2014 Q3 2015 Cash Net Debt * Total Debt Liquidity Debt to Total Capital Amounts in millions Amounts in millions 8 * Total debt less cash and marketable securities. Note: Balances as of fiscal period end. Figures on this page may not sum due to rounding. Debt and Liquidity Highlights $73 $74 $101 $201 $130 $137 $21 $23 $202 $211 $123 $224 2012 2013 2014 Q3 2015 Cash and Marketable Securities Borrowing Availability Q3 2015 Earnings Results | Oct. 21, 2015
Expectation Commentary Total Revenue $738M to $753M 7% to 9% • Mid-point expectation of 8% growth; all organic Staffing Services Revenue 7% to 9% • Continued trend of high single-digit growth Managed Services Revenue 0% to 15% • Mid-point expectation of 7% growth; 9% in constant currency • Smaller revenue base vs. Staffing Services = wider range • Revenue timing of customer implementations can be lumpy Total Adjusted EBITDA $46M to 50M • Q4 2014 workers’ compensation expense was 40 bps lower than current run-rate of 3.6% • Adjusted EBITDA growth 20%+ on comparable workers’ compensation basis Total Adjusted EPS $0.58 to $0.64 • Marginal 40% income tax rate and $0.07 add-back for intangible asset amortization Amounts in millions, except for earnings per share Q4 2015 EXPECTATIONS 10 Q3 2015 Earnings Results | Oct. 21, 2015
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA excludes interest, taxes, depreciation and amortization from net income. Adjusted EBITDA further excludes from EBITDA non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions. EBITDA and Adjusted EBITDA are key measures used by management in evaluating 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, as presented, 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 on a per diluted share basis non-recurring costs related to the purchase, integration, reorganization and shutdown activities related to acquisitions net of tax, amortization of intangibles of acquired businesses net of tax and adjusts income taxes to a marginal rate of 40 percent, which is used by management in evaluating performance and communicating 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, as presented, may not be comparable to similarly titled measures of other companies. See “Financial Information” 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. NON-GAAP TERMS AND DEFINITIONS 11 Q3 2015 Earnings Results | Oct. 21, 2015
2 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 2015 are based on management guidance issued October 21, 2015, and are included for informational purposes only and are not an update or reaffirmation. 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. October 2015 Investor Presentation
) $2.6B 2015E Revenue 3 * See “Financial Information” in the Investors section of our website at www.trueblue.com for a definition and full reconciliation of non-GAAP financial measures to GAAP financial results. 2012 2013 2014 Revenue Adjusted EBITDA * October 2015 Investor Presentation 2012 2013 2014 2015E 2012 2013 2014 2015E
Demand-driven organic growth >$500M invested in 18 acquisitions 4 1989 Build-out • • • 2004 Growth • • • Expansion into recruitment process outsourcing and workforce • • recruiting (RPO) 2014 Longer term staffing assignments Stilled Trades Aviation mechanics Truck drivers (formerly Seaton) On-premise management Staffing vendor management Permanent recruiting
1 Source: Staffing Industry Analysts 2014 revenue; Pro forma for acquisition of Seaton. October 2015 Investor Presentation 5
6 TrueBlue helps clients improve performance and increase growth by providing specialized staffing, workforce management and recruiting solutions. October 2015 Investor Presentation
• • • • • • • • 7 Staffing Solutions & Workforce Management Recruitment Process Outsourcing & MSP Industry Highlights CAGR 15% 2010 – 2015P Industry Highlights 8% October 2015 Investor Presentation
Construction Transportation & Wholesale Retail In d u s tr y D y n a m ic s • • • • • • • • • • • Construction Upside Potential Industrial Production in a Growth Cycle Wholesale Trade At New Peak Retail Trade Continued Growth Source: U.S. Census Bureau Source: U.S. Board of Governors of the Federal Reserve System (FRB) Source: Bureau of Labor Statistics Source: US Census Bureau *Pro forma for full year of Seaton results; Seaton was acquired on June 30, 2014. 300.0 350.0 400.0 450.0 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 Retail Trade and Food Services Sales Billions 4.0 4.2 4.4 4.6 4.8 5.0 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 Transportation and Warehousing Employment Millions 80 85 90 95 100 105 110 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 Industrial Production Index 8 - 1 1 2 2 3 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 Residential Housing Permits Millions
9 • • • • • • • • • • • • October 2015 Investor Presentation