TBI 8-K
TrueBlue, Inc. (TBI)
8-K
2021-10-25
For: 2021-10-25
View Original
Added on
April 07, 2026
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 25, 2021
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction
of Incorporation)
| (Commission File Number) | (IRS Employer Identification No.) | |||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (253 ) 383-9101
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)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
On October 25, 2021, TrueBlue, Inc. (the “company”) issued a press release (the “Press Release”) reporting its financial results for the third quarter ended September 26, 2021, and revenue and earnings outlook for the fourth quarter of 2021, 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 26, 2021 (the “Earnings Results Presentation”), which will be discussed by management of the company on a live conference call at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) on Monday, October 25, 2021. The Earnings Results Presentation is also available on the company’s website at 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 Investor Roadshow Presentation to this report as Exhibit 99.3, which we will reference in our Q3 2021 earnings results discussion and which may be used in future investor conferences. The Investor Roadshow Presentation is also available on the company’s website at www.trueblue.com.
In accordance with General Instruction B.2. of Form 8-K, the information contained above in this report (including the Investor Roadshow 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 Roadshow 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
| Exhibit Number | Exhibit Description | Filed Herewith | ||||||
| 99.1 | X | |||||||
| 99.2 | X | |||||||
| 99.3 | X | |||||||
| 104 | Cover page interactive data file - The cover page from this Current Report on Form 8-K is formatted as Inline XBRL | X | ||||||
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 25, 2021 | By: | /s/ Derrek L. Gafford | |||||||||||
| Derrek L. Gafford | ||||||||||||||
| Chief Financial Officer and Executive Vice President | ||||||||||||||
TRUEBLUE REPORTS THIRD QUARTER 2021 RESULTS
Second consecutive quarter of double-digit revenue growth
TACOMA, WASH. - Oct. 25, 2021 -- TrueBlue (NYSE:TBI) today announced its third quarter results for 2021.
Third quarter revenue was $577 million, an increase of 22 percent compared to revenue of $475 million in the third quarter of 2020. Net income per diluted share was $0.53 compared to net income per diluted share of $0.25 in the third quarter of 2020. Third quarter adjusted net income1 per diluted share was $0.59 compared to adjusted net income per diluted share of $0.24 in the third quarter of 2020.
“Net income per diluted share more than doubled as a result of strong demand combined with gross margin expansion,” said Patrick Beharelle, CEO of TrueBlue. “We are seeing businesses of all types turning to flexible workforce solutions as they grapple with worker supply challenges and a variety of uncertainties related to the Covid-19 business environment. PeopleScout exceeded pre-pandemic revenue during the quarter, PeopleManagement new business wins have been exceptionally strong throughout the year and PeopleReady revenue growth accelerated as we entered October.
“Investing in technology remains at the center of our strategy.” Mr. Beharelle continued. “Our digital platforms have us well-positioned to create differentiated value for our customers and workers. Given the strength of our strategies as well as a favorable environment for flexible labor solutions, we are increasingly optimistic about our prospects to deliver sustainable long-term growth.”
2021 Outlook
TrueBlue is providing certain forward-looking information to help investors form their own estimates, which can be found in the quarterly earnings presentation filed today.
Management will discuss third quarter 2021 results on a webcast at 2:30 p.m. PT (5:30 p.m. ET), today, Monday, Oct. 25, 2021. The webcast can be accessed on TrueBlue’s website: www.trueblue.com.
About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2020, TrueBlue connected approximately 490,000 people with work. Its PeopleReady segment offers on-demand, industrial staffing, PeopleManagement offers contingent, on-site industrial staffing and commercial driver services, and PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions to a wide variety of industries. Learn more at www.trueblue.com.
1 Refer to the financial statements accompanying this release and the company’s website for more information regarding non-GAAP terms.
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 many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, (2) the continued impact of COVID-19 and related economic impact and governmental response, (3) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (4) our ability to attract and retain clients, (5) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (6) our ability to maintain profit margins, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) our ability to successfully execute on business strategies to further digitalize our business model, and (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. 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 references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.
In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this document and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.
Contact:
Derrek Gafford, Executive Vice President and CFO
253-680-8214
TRUEBLUE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
13 weeks ended | 39 weeks ended | ||||||||||||||||||||||
| (in thousands, except per share data) | Sep 26, 2021 | Sep 27, 2020 | Sep 26, 2021 | Sep 27, 2020 | |||||||||||||||||||
| Revenue from services | $ | 577,031 | $ | 474,530 | $ | 1,551,692 | $ | 1,327,726 | |||||||||||||||
| Cost of services | 430,529 | 364,066 | 1,158,148 | 1,007,878 | |||||||||||||||||||
| Gross profit | 146,502 | 110,464 | 393,544 | 319,848 | |||||||||||||||||||
| Selling, general and administrative expense | 118,748 | 90,100 | 326,657 | 304,681 | |||||||||||||||||||
| Depreciation and amortization | 6,426 | 7,652 | 20,405 | 24,002 | |||||||||||||||||||
| Goodwill and intangible asset impairment charge | — | — | — | 175,189 | |||||||||||||||||||
| Income (loss) from operations | 21,328 | 12,712 | 46,482 | (184,024) | |||||||||||||||||||
| Interest expense and other income, net | 581 | (174) | 1,880 | (323) | |||||||||||||||||||
| Income (loss) before tax expense (benefit) | 21,909 | 12,538 | 48,362 | (184,347) | |||||||||||||||||||
| Income tax expense (benefit) | 3,267 | 3,743 | 6,938 | (34,480) | |||||||||||||||||||
| Net income (loss) | $ | 18,642 | $ | 8,795 | $ | 41,424 | $ | (149,867) | |||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.53 | $ | 0.25 | $ | 1.19 | $ | (4.20) | |||||||||||||||
| Diluted | $ | 0.53 | $ | 0.25 | $ | 1.17 | $ | (4.20) | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 34,873 | 34,597 | 34,788 | 35,643 | |||||||||||||||||||
| Diluted | 35,475 | 34,904 | 35,255 | 35,643 | |||||||||||||||||||
TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands) | Sep 26, 2021 | Dec 27, 2020 | |||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 49,173 | $ | 62,507 | |||||||
| Accounts receivable, net | 330,705 | 278,343 | |||||||||
| Other current assets | 37,631 | 38,035 | |||||||||
| Total current assets | 417,509 | 378,885 | |||||||||
| Property and equipment, net | 86,414 | 71,734 | |||||||||
| Restricted cash and investments | 223,832 | 240,534 | |||||||||
| Goodwill and intangible assets, net | 118,384 | 123,802 | |||||||||
| Other assets, net | 163,653 | 165,622 | |||||||||
| Total assets | $ | 1,009,792 | $ | 980,577 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Accounts payable and other accrued expenses | $ | 62,706 | $ | 58,447 | |||||||
| Accrued wages and benefits | 89,870 | 122,657 | |||||||||
| Current portion of workers’ compensation claims reserve | 60,936 | 66,007 | |||||||||
| Other current liabilities | 25,272 | 21,856 | |||||||||
| Total current liabilities | 238,784 | 268,967 | |||||||||
| Workers’ compensation claims reserve, less current portion | 197,633 | 189,486 | |||||||||
| Other long-term liabilities | 87,699 | 84,934 | |||||||||
| Total liabilities | 524,116 | 543,387 | |||||||||
| Shareholders’ equity | 485,676 | 437,190 | |||||||||
| Total liabilities and shareholders’ equity | $ | 1,009,792 | $ | 980,577 | |||||||
TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
39 weeks ended | |||||||||||
| (in thousands) | Sep 26, 2021 | Sep 27, 2020 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 41,424 | $ | (149,867) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 20,405 | 24,002 | |||||||||
| Goodwill and intangible asset impairment charge | — | 175,189 | |||||||||
| Provision for credit losses | 2,881 | 6,582 | |||||||||
| Stock-based compensation | 10,149 | 6,762 | |||||||||
| Deferred income taxes | 445 | (25,955) | |||||||||
| Non-cash lease expense | 11,173 | 11,115 | |||||||||
| Other operating activities | (1,484) | 1,944 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (53,626) | 55,408 | |||||||||
| Income tax receivable | 963 | (4,928) | |||||||||
| Operating lease right-of-use-asset | 7,150 | — | |||||||||
| Other assets | (7,003) | (2,646) | |||||||||
| Accounts payable and other accrued expenses | 3,212 | (12,723) | |||||||||
| Other accrued wages and benefits | 24,278 | (7,395) | |||||||||
| Deferred employer payroll taxes | (57,066) | 36,312 | |||||||||
| Workers’ compensation claims reserve | 3,075 | (824) | |||||||||
| Operating lease liabilities | (10,017) | (11,410) | |||||||||
| Other liabilities | 4,598 | (2,798) | |||||||||
| Net cash provided by operating activities | 557 | 98,768 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (28,772) | (16,244) | |||||||||
| Purchases of restricted available-for-sale investments | (29) | (2,310) | |||||||||
| Sales of restricted available-for-sale investments | 793 | 3,212 | |||||||||
| Purchases of restricted held-to-maturity investments | — | (32,495) | |||||||||
| Maturities of restricted held-to-maturity investments | 18,346 | 24,358 | |||||||||
| Net cash used in investing activities | (9,662) | (23,479) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Purchases and retirement of common stock | — | (52,346) | |||||||||
| Net proceeds from employee stock purchase plans | 754 | 734 | |||||||||
| Common stock repurchases for taxes upon vesting of restricted stock | (3,035) | (2,331) | |||||||||
| Net change in revolving credit facility | — | (35,600) | |||||||||
| Other | (270) | (1,436) | |||||||||
| Net cash used in financing activities | (2,551) | (90,979) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (613) | (466) | |||||||||
| Net change in cash, cash equivalents, and restricted cash | (12,269) | (16,156) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 118,612 | 92,371 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 106,343 | $ | 76,215 | |||||||
TRUEBLUE, INC.
SEGMENT DATA
(Unaudited)
13 weeks ended | |||||||||||
| (in thousands) | Sep 26, 2021 | Sep 27, 2020 | |||||||||
| Revenue from services: | |||||||||||
| PeopleReady | $ | 349,056 | $ | 293,546 | |||||||
| PeopleManagement | 157,789 | 147,241 | |||||||||
| PeopleScout | 70,186 | 33,743 | |||||||||
| Total company | $ | 577,031 | $ | 474,530 | |||||||
Segment profit (1): | |||||||||||
| PeopleReady | $ | 24,690 | $ | 18,714 | |||||||
| PeopleManagement | 2,360 | 4,574 | |||||||||
| PeopleScout | 9,778 | 349 | |||||||||
| Total segment profit | 36,828 | 23,637 | |||||||||
| Corporate unallocated expense | (7,667) | (5,968) | |||||||||
Total company Adjusted EBITDA (2) | 29,161 | 17,669 | |||||||||
| Third-party processing fees for hiring tax credits (3) | (419) | (174) | |||||||||
| Amortization of software as a service assets (4) | (670) | (575) | |||||||||
| Workforce reduction costs (5) | (110) | (270) | |||||||||
| COVID-19 government subsidies | 92 | 4,071 | |||||||||
| Other adjustments, net (6) | (300) | (357) | |||||||||
EBITDA (2) | 27,754 | 20,364 | |||||||||
| Depreciation and amortization | (6,426) | (7,652) | |||||||||
| Interest expense and other income, net | 581 | (174) | |||||||||
| Income before tax expense | 21,909 | 12,538 | |||||||||
| Income tax expense | (3,267) | (3,743) | |||||||||
| Net income | $ | 18,642 | $ | 8,795 | |||||||
(1)We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing.
(2)See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA.
(3)These third-party processing fees are associated with generating hiring tax credits.
(4)Amortization of software as a service assets is reported in selling, general and administrative expense.
(5)Workforce reduction costs for the 13 weeks ended September 27, 2020 were primarily due to employee reductions as part of our cost management actions in response to COVID-19 ($0.2 million in cost of services and $0.1 million in selling, general and administrative expense).
(6)Other adjustments for the 13 weeks ended September 26, 2021 primarily include costs of $0.2 million incurred while transitioning into our new Chicago office and implementation costs for cloud-based systems of $0.1 million. Other adjustments for the 13 weeks ended September 27, 2020 primarily include lease exit costs of $0.2 million and implementation costs for cloud-based systems of $0.1 million.
TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS
In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.
| Non-GAAP measure | Definition | Purpose of adjusted measures | |||||||||
| EBITDA and Adjusted EBITDA | EBITDA excludes from net income (loss): - interest expense and other income, net, - income taxes, and - depreciation and amortization. Adjusted EBITDA, further excludes: - third-party processing fees for hiring tax credits, - amortization of software as a service assets, - workforce reductions costs, - COVID-19 government subsidies, and - other adjustments, net. | - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. - Used by management to assess performance and effectiveness of our business strategies. - Provides a measure, among others, used in the determination of incentive compensation for management. | |||||||||
| Adjusted net income and Adjusted net income per diluted share | Net income (loss) and net income (loss) per diluted share, excluding: - amortization of intangibles of acquired businesses, - amortization of software as a service assets, - workforce reduction costs, - COVID-19 government subsidies - other adjustments, net, and - tax effect of each adjustment to U.S. GAAP. | - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. - Used by management to assess performance and effectiveness of our business strategies. | |||||||||
1.RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE
(Unaudited)
13 weeks ended | |||||||||||
| (in thousands, except for per share data) | Sep 26, 2021 | Sep 27, 2020 | |||||||||
| Net income | $ | 18,642 | $ | 8,795 | |||||||
| Amortization of intangible assets of acquired businesses | 1,506 | 2,041 | |||||||||
| Amortization of software as a service assets (1) | 670 | 575 | |||||||||
| Workforce reduction costs (2) | 110 | 270 | |||||||||
| COVID-19 government subsidies | (92) | (4,071) | |||||||||
| Other adjustments, net (3) | 300 | 357 | |||||||||
| Tax effect of adjustments to net income (loss) (4) | (372) | 247 | |||||||||
| Adjusted net income | $ | 20,764 | $ | 8,214 | |||||||
| Adjusted net income per diluted share | $ | 0.59 | $ | 0.24 | |||||||
| Diluted weighted average shares outstanding | 35,475 | 34,904 | |||||||||
2.RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
13 weeks ended | |||||||||||
| (in thousands) | Sep 26, 2021 | Sep 27, 2020 | |||||||||
| Net income | $ | 18,642 | $ | 8,795 | |||||||
| Income tax expense | 3,267 | 3,743 | |||||||||
| Interest expense and other (income), net | (581) | 174 | |||||||||
| Depreciation and amortization | 6,426 | 7,652 | |||||||||
| EBITDA | 27,754 | 20,364 | |||||||||
| Third-party processing fees for hiring tax credits (5) | 419 | 174 | |||||||||
| Amortization of software as a service assets (1) | 670 | 575 | |||||||||
| Workforce reduction costs (2) | 110 | 270 | |||||||||
| COVID-19 government subsidies | (92) | (4,071) | |||||||||
| Other adjustments, net (3) | 300 | 357 | |||||||||
| Adjusted EBITDA | $ | 29,161 | $ | 17,669 | |||||||
(1)Amortization of software as a service assets is reported in selling, general and administrative expense.
(2)Workforce reduction costs for the 13 weeks ended September 27, 2020 were primarily due to employee reductions as part of our cost management actions in response to COVID-19 ($0.2 million in cost of services and $0.1 million in selling, general and administrative expense).
(3)Other adjustments for the 13 weeks ended September 26, 2021 primarily include costs of $0.2 million incurred while transitioning into our new Chicago office and implementation costs for cloud-based systems of $0.1 million. Other adjustments for the 13 weeks ended September 27, 2020 primarily include lease exit costs of $0.2 million and implementation costs for cloud-based systems of $0.1 million.
(4)Total tax effect of each of the adjustments to U.S. GAAP net income (loss) using the expected income tax rate of 14 percent for 2021 and the effective income tax rate of 30 percent for Q3 2020.
(5)These third-party processing fees are associated with generating hiring tax credits.
Q3 2021 Earnings October 2021
www.TrueBlue.c om 2 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 many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, (2) the continued impact of COVID-19 and related economic impact and governmental response, (3) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (4) our ability to attract and retain clients, (5) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (6) our ability to maintain profit margins, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) our ability to successfully execute on business strategies to further digitalize our business model, and (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. 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 references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC. In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this presentation and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies. Any comparisons made herein to other periods are based on a comparison to the same period in the prior year unless otherwise stated.
www.TrueBlue.c om 3 Q3 2021 Overview Total revenue +22% - second consecutive quarter of double-digit growth ▪ Customer wins at multi-year high ▪ PeopleScout surpassed pre-pandemic Q3 2019 revenue ▪ Increased demand offsetting current worker supply challenges Net income was $19 million v. $9 million in Q3 2020 Adjusted EBITDA1 was $29 million v. $18 million in Q3 2020, with margin up 130 bps ▪ Gross margin was up 210 basis points from lower workers' compensation costs and increasing PeopleScout sales mix 1 Refer to the appendix to this presentation and “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.
www.TrueBlue.c om 4 Financial summary 1 Refer to the appendix to this presentation and “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. Amounts in millions, except per share data Q3 2021 Q3 2020 Change Revenue $577 $475 22 % Net income $18.6 $8.8 112 % Net income per diluted share $0.53 $0.25 112 % Adjusted net income¹ $20.8 $8.2 153 % Adj. net income per diluted share $0.59 $0.24 146 % Adjusted EBITDA $29.2 $17.7 65 % Adjusted EBITDA margin 5.1 % 3.7 % 130 bps Notes: ▪ Increased profitability was primarily driven by revenue growth and gross margin expansion. ▪ Adjusted net income growth was greater than GAAP net income growth primarily due to $4 million in government subsidies in Q3 2020 which were excluded from adjusted results1.
www.TrueBlue.c om 5 Gross margin and SG&A bridges Amounts in millions Gr os s m ar gi n SG &A $90 $4 $25 $119 Q3 2020 Core business Q3 2021 23.3% 1.1% 1.0% 25.4% Q3 2020 Staffing RPO Q3 2021 Adjusted EBITDA exclusions1 1 $4 million represents the year-over-year change in Adjusted EBITDA exclusions impacting SG&A. Refer to the adjusted EBITDA reconciliation in the appendix to this presentation for more information.
www.TrueBlue.c om 6 Q3 2021 Results by segment Amounts in millions PeopleReady PeopleManagement PeopleScout Revenue $349 $158 $70 % Change 19% 7% 108% Segment profit1 $25 $2 $10 % Change 32% -48% 2,702% % Margin 7.1% 1.5% 13.9% Change 70 bps -160 bps 1290 bps Notes: ■ Revenue was +19% – 84% of Q3 2019 revenue recovered • Negatively impacted by worker supply shortage – Trends improved across most geographies and industries, including those hit hardest last year ■ Segment profit margin expansion primarily driven by lower workers' compensation costs ■ Revenue was +7% – 99% of Q3 2019 revenue recovered ■ $86 million in annualized new business wins YTD v. three year historical average of $60 million ■ Segment profit margin contraction primarily driven by the return of temporary cost reductions taken in 2020 and higher variable expenses tied to new business growth ■ Revenue was +108% – 109% of Q3 2019 revenue recovered – Rapid recovery in travel and leisure (25% of mix; up ~308%) combined with new wins ■ $38 million in annualized new business wins YTD v. three year historical average of $9 million ■ Segment profit margin expansion primarily due to increased operating leverage in both cost of services and SG&A 1 We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing.
www.TrueBlue.c om 7 Strategy highlights Leverage technology and industry leading position to grow market share and enhance efficiency ▪ Focus sales and marketing efforts to capitalize on industry dynamics (i.e. outsourcing) and hard-hit sectors entering recovery (i.e. travel & leisure) ▪ Leverage our strong brand; independently ranked as a market leader ▪ Expand technology offering to improve client delivery and recruiting efficiency ▪ Digitalize our business model to gain market share from smaller and less well-capitalized competitors and reduce costs ▪ Drive higher client usage ("heavy client users") of JobStackTM, our industry- leading technology, to accelerate revenue improvement ▪ Increase candidate flow and quality using new digital onboarding platforms ▪ Continue momentum on new customer wins through strong execution of sales initiatives ▪ Increase sales resources to expand into under- penetrated geographic markets ▪ Invest in client and associate care in addition to retention programs
www.TrueBlue.c om 8 JobStackTM Industry-leading mobile app that connects our associates with jobs and simplifies client ordering Digital strategy targeting market share gains and efficiencies Increasing client usage • 29,100 client users, up 11% v. Q3 2020 • 940,000 shifts filled in Q3 2021 • Heavy client users1 account for 56% of eligible revenue2, +25 ppts YOY • 93% associate adoption • 4.6 star rating in iOS app store • Digital fill rate of 58%, +7 ppts YOY 1 Heavy client users are clients for any given month that have 50+ touches on JobStack (entering an order, rating a worker, etc.). Year-over-year growth rates for heavy client users are calculated on a same customer basis. 2 Eligible revenue includes our U.S. on-demand business. Skilled trades, Canada and Puerto Rico are excluded as non-eligible users. Strong associate adoption
www.TrueBlue.c om 9 12% 6% 0% 0% 2018 2019 2020 Q3 2021 $80 $37 $0 $0 $33 $47 $38 $63 $49 Net debt Cash 2018 2019 2020 Q3 2021 $260 $295 $224 $343 $213 $257 $161 $294 $47 $38 $63 $49 Borrowing availability Cash 2018 2019 2020 Q3 2021 Balance sheet remains strong Amounts in millions Note: Figures may not sum to consolidated totals due to rounding. Balances as of fiscal period end. 1 Total Debt to Capital calculated as total debt divided by the sum of total debt plus shareholders’ equity. Liquidity Amounts in millions Share repurchasesTotal debt to capital1 Total debt $37 $35 $39 $52 $0 2017 2018 2019 2020 YTD 2021 Amounts in millions
Outlook
www.TrueBlue.c om 11 Select outlook information Item Q4 2021 Commentary Revenue We are not providing customary guidance. However, we note that excluding 2020, the four-year historical average for sequential revenue growth from Q3 to Q4 was roughly flat. Listed below is the year-over-year growth for our staffing business1 during the first three weeks of October 2021 and our exit rate for Q3 2021 (September 2021): • Total staffing revenue grew 12% during the first three weeks of October versus 10% in September • PeopleReady revenue grew 17% during first three weeks of October versus 14% in September • PeopleManagement grew 1% during first three weeks of October versus 2% in September Gross margin +140 to +180 bps v. prior year Expansion from segment revenue mix and cost of services operating leverage from rising PeopleScout volumes. SG&A $126M to $130M EBITDA Adjustments2 ~$5M ~$2.5M in expected realized gain on the sale of deferred compensation mutual funds to purchase corporate owned life insurance policies (the gain from the asset is reported in other income and the expense for the related liability is included in SG&A). ~$2.0M in SaaS implementation costs. ~$0.5M in other adjustments. CapEx ~$10M Q4 depreciation is expected to be ~$5M. Shares ~35.5M Reflects diluted weighted average shares outstanding. Tax Rate 12% to 16% Reflects effective income tax rate. 1 Weekly data is not available for our recruitment process outsourcing business as it bills clients monthly. 2 Refer to the appendix to this presentation and “Financial Information” in the investors section of our website at www.trueblue.com for a definition of non-GAAP financial measures.
Appendix
www.TrueBlue.c om 13 NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies. Non-GAAP measure Definition Purpose of adjusted measures EBITDA and Adjusted EBITDA EBITDA excludes from net income (loss): - interest expense and other income, net, - income taxes, and - depreciation and amortization. Adjusted EBITDA, further excludes: - third-party processing fees for hiring tax credits, - amortization of software as a service assets, - workforce reductions costs, - COVID-19 government subsidies, and - other adjustments, net. - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. - Used by management to assess performance and effectiveness of our business strategies. - Provides a measure, among others, used in the determination of incentive compensation for management. Adjusted net income and Adjusted net income per diluted share Net income (loss) and net income (loss) per diluted share, excluding: - amortization of intangibles of acquired businesses, - amortization of software as a service assets, - workforce reduction costs, - COVID-19 government subsidies - other adjustments, net, and - tax effect of each adjustment to U.S. GAAP. - Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. - Used by management to assess performance and effectiveness of our business strategies.
www.TrueBlue.c om 14 1. RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (Unaudited) 13 weeks ended (in thousands, except for per share data) Sep 26, 2021 Sep 27, 2020 Net income $ 18,642 $ 8,795 Amortization of intangible assets of acquired businesses 1,506 2,041 Amortization of software as a service assets (1) 670 575 Workforce reduction costs (2) 110 270 COVID-19 government subsidies (92) (4,071) Other adjustments, net (3) 300 357 Tax effect of adjustments to net income (loss) (4) (372) 247 Adjusted net income $ 20,764 $ 8,214 Adjusted net income per diluted share $ 0.59 $ 0.24 Diluted weighted average shares outstanding 35,475 34,904 Refer to the last slide of the appendix for footnotes. 2. RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) 13 weeks ended (in thousands) Sep 26, 2021 Sep 27, 2020 Net income $ 18,642 $ 8,795 Income tax expense 3,267 3,743 Interest expense and other (income), net (581) 174 Depreciation and amortization 6,426 7,652 EBITDA 27,754 20,364 Third-party processing fees for hiring tax credits (5) 419 174 Amortization of software as a service assets (1) 670 575 Workforce reduction costs (2) 110 270 COVID-19 government subsidies (92) (4,071) Other adjustments, net (3) 300 357 Adjusted EBITDA $ 29,161 $ 17,669
www.TrueBlue.c om 15 Footnotes: (1) Amortization of software as a service assets is reported in selling, general and administrative expense. (2) Workforce reduction costs for the 13 weeks ended September 27, 2020 were primarily due to employee reductions as part of our cost management actions in response to COVID-19 ($0.2 million in cost of services and $0.1 million in selling, general and administrative expense). (3) Other adjustments for the 13 weeks ended September 26, 2021 primarily include costs of $0.2 million incurred while transitioning into our new Chicago office and implementation costs for cloud-based systems of $0.1 million. Other adjustments for the 13 weeks ended September 27, 2020 primarily include lease exit costs of $0.2 million and implementation costs for cloud-based systems of $0.1 million. (4) Total tax effect of each of the adjustments to U.S. GAAP net income (loss) using the expected income tax rate of 14 percent for 2021 and the effective income tax rate of 30 percent for Q3 2020. (5) These third-party processing fees are associated with generating hiring tax credits.
Investor Roadshow Presentation October 2021
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 many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, (2) the continued impact of COVID-19 and related economic impact and governmental response, (3) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (4) our ability to attract and retain clients, (5) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (6) our ability to maintain profit margins, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) our ability to successfully execute on business strategies to further digitalize our business model, and (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. 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 references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC. In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this presentation and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies. Any comparisons made herein to other periods are based on a comparison to the same period in the prior year unless otherwise stated.
Investment highlights Return of Capital Market leader in U.S. blue collar staffing and global RPO with increasingly diverse service offerings Attractive growth potential from secular, cyclical and post-Covid recovery factors Strong balance sheet and cash flow to support stock buybacks Sound growth strategies applying industry leading digital technology to increase market share
Our Mission: Connecting People and Work 99,000 Clients served annually with strong diversity1 490,000 People connected to work during 2020 One of the largest U.S. industrial staffing providers One of the largest global RPO providers2 Returning Value to Shareholders (Share Repurchases last 5 years) 2015-2020 Free Cash Flow3 CAGR $1.8B 2020 Revenue 19% Growth $169M HRO Today magazine repeatedly recognizes PeopleScout as a global market leader Thousands of veterans hired each year via internal programs as well as Hiring Our Heroes and Wounded Warriors Recognized for breakthrough board practices that promote greater diversity and inclusion 1 No single client accounted for more than 4% of total revenue for FY 2020. 2 Source: Evolution of RPO: Meeting Hiring Needs for the Workplace of the 2020s. NelsonHall, September 2020. 3 Calculated as net cash provided by operating activities minus purchases for property and equipment. All segments earned the Top Workplaces USA Award issued by Energage
Three specialized segments meet diverse client needs On-demand general and skilled labor for industrial jobs Contingent, on-site industrial staffing and commercial driver services Talent solutions for outsourcing the recruiting process for permanent employees 1 Revenue and segment profit calculations based on FY 2020. Figures may not sum due to rounding. ² Average, estimated margin associated with additional organic revenue. PeopleReady PeopleManagement PeopleScout TrueBlue Incremental Segment profit / EBITDA Margin2 15 – 20% 8 – 13% 27 – 32% 15 – 20% 60% 73% 32% 20% 9% 8% PeopleReady PeopleManagement PeopleScout Revenue1 Segment profit mix1 Segment profit margin1 4% 2% 3%
Solving workforce challenges Workforce Complexity Many factors, including globalization, the “gig” economy and diversity are changing the world of work requiring a disciplined approach to hiring. Artificial Intelligence Companies are seeking ways to become nimbler and more efficient Deploying AI to source human capital will be a requirement to compete. Remote Recruiting The worker supply chain is becoming increasingly decentralized. TrueBlue’s digital strategy connects people anywhere at any time. Workforce solutions are in high demand as businesses increasingly turn to human capital experts to solve talent challenges. A robust value proposition with specialized, digital solutions for staffing, workforce management and recruitment process outsourcing.
US Industrial Staffing poised for post-Covid rebound Why Industrial Staffing? Largest segment of the staffing industry ($30B1 in 2020) No dominant competition Digital adoption by the industry can expand growth opportunity, like Uber did in rideshare Participate in ecommerce logistics as retail shifts online Unique growth opportunity to fill key skilled trades positions as baby boomers retire The Biden Administration’s potential infrastructure plan could inject billions into the labor market 1Source: Staffing Industry Analyst reports: US Staffing Industry Forecast (September 2021). Industrial temp staffing includes various occupations such as: laborers, packers, construction workers, skilled trades, machinists, janitors, etc. U.S. Industrial Temp Staffing Revenue Growth 4% 0% -13% 2018 2019 2020 Historical Industry Growth1 The industry rebounds quickly in the early stages of a recovery 13% YTD 2021 TBI Staffing Growth
RPO: Historically, a double-digit growth industry Why RPO? “Immature” market with no one dominant player Industry produced double-digit annual revenue growth historically and swift recovery to recent recession is expected Industry poised for growth as companies seek new solutions to increasing labor challenges Traditionally “sticky” business model with high client retention and engagement 1Source: Historical data sourced using annual NelsonHall reports. 2020 sourced from Evolution of RPO: Meeting Hiring Needs for the Workplace of the 2020s. NelsonHall, September 2020. 11% 12% -8% 2018 2019 2020P RPO Revenue Growth Historical Industry Growth1 PeopleScout Growth 53% YTD 2021
Strategically positioned for secular growth Strong position in attractive vertical markets Powerful secular forces in industrial staffing Deepening of the general contingent labor pool as workers across the generational spectrum are embracing the gig economy (e.g. millennials with side-hustles and semi-retired baby boomers) Positive Demographic Trends Industry is ripe for digital disruption Potential for large providers with sizeable transaction volume to capture market share Opportunity to enhance efficiency and growthCompelling Technology Heightened scrutiny around worker classification (contractor v. employee) Offering a variety of workforce management solutions (e.g. PPO, Employer of Record, MSP) to help clients seek compliant solutionsCapitalizing on Industry Evolution 18% 18% 20% 24% FY 2020 Mix by Vertical Co ns tru cti on Ma nu fac tur ing Tr an sp or tat ion Skilled worker shortages in key areas where TrueBlue specializes and has a recruiting edge (e.g. skilled construction) Flight to the suburbs will be a tailwind for the industry Political climate favoring investments in domestic manufacturing facilities Acute supply / demand gap and high turnover driving the need for temp truck drivers E-commerce driving the need for more warehouses and more workers per warehouse to facilitate expedited delivery and returnsRe tai l
Leverage technology and industry leading position to grow share and enhance efficiency Strategy highlights Digitalize our business model to gain market share from smaller and less well-capitalized competitors and reduce costs Drive higher client usage ("heavy client users") of JobStackTM, our industry- leading technology, to accelerate revenue improvement Increase candidate flow and quality using new digital onboarding platforms Continue momentum on new customer wins through strong execution of sales initiatives Increase sales resources to expand into under- penetrated geographic markets Invest in client and associate care in addition to retention programs Focus sales and marketing efforts to capitalize on industry dynamics (i.e. outsourcing) and hard-hit sectors entering recovery (i.e. travel & leisure) Leverage our strong brand; independently ranked as a market leader Expand technology offering to improve client delivery and recruiting efficiency
PeopleReady: The digital strategy is targeting market share gains & efficiencies What is JobStack? Industry leading mobile app that connects our associates with jobs and simplifies ordering Recent achievements: Strong associate adoption • >90% associate adoption • Digital fills of 58%, up 7 ppts YOY • New digital onboarding technology cut application time in half, increasing candidates Go-forward focus: Drive revenue growth with heavy client users Significant opportunity exists: over 40% of clients indicated they use 2+ staffing firms Reduce delivery costs • Opportunity to leverage technology, centralize work activities and repurpose job roles • Pilots rolled out in 1H 2021 Increasing client usage • 29,100 clients users • 56% of eligible revenue1 from heavy client users2 up 25 ppts YOY 1 Eligible revenue includes our U.S. on-demand business. Skilled trades, Canada and Puerto Rico are excluded as non-eligible users. 2 Heavy client users are clients for any given month that have 50+ touches on JobStack (entering an order, rating a worker, etc.). Year-over-year growth rates for heavy client users are calculated on a same customer basis.
JobStack heavy client user success story Customer Profile Midwest Food Producer and Distributor Long-time PeopleReady Client PeopleReady Service Overview Supplied associates for one shift Filled a narrow set of positions Shared relationship with another staffing agency, which placed temp to perm workers Branches fill orders, provide customer service and troubleshoot issues The JobStack Value Ability to fill more positions across all shifts Access to a variety of positions Elimination of multiple staffing agencies Branch focus shifted to customer service and troubleshooting vs. sourcing associates Q119 Q219 Q319 Q419 Q120 Q220 Q220 Q420 Revenue Trend JobStack Adoption 4x Annual Revenue Growth
PeopleManagement: Expanding market share PeopleManagement proved more resilient during the pandemic due to the outsourced nature of our client relationships and is well-positioned for growth The team is deploying a variety of tactics and strategies to expand market share o Launching effort focused on smaller, local markets o Hiring additional salespeople and condensing their geographic footprint o Expanding into new sites at National Account clients o Cross-selling with other TrueBlue brands Approximately 90% of Onsite revenue is in the East and Midwest Onsite growth opportunities
PeopleScout: Industry leader with historically high margins Strong Brand Recognition o #1 by HRO Today’s Total Workforce Solution Baker’s Dozen o 3rd largest North American and 4th largest global RPO provider Affinix Technology: A Differentiated Experience o Connects clients and candidates using AI, machine learnings and predictive analytics ideal in today’s remote recruiting landscape o Flexible platform with plans to monetize services our clients can use directly Strong Growth & Profitability Prospects o Demonstrated track record servicing large employers with dynamic needs in industries (hospitality, travel) positioned for a rebound o Segment margins expected to increase as scale returns o Expanding sales and client delivery teams to accelerate new business o Global focus as growing number of deals are multi-region and multi-country $181 $252 $160 2016 2019 2020 Revenue 19% 15% 3% 2016 2019 2020 Segment Profit Margin
ESG principles help us make sound decisions External ESG Ratings: AA Rating Risk Ranking: Negligible Risk Exposure: Low Risk Management: Strong Key Statistics: MSCI ESG industry leader (top 20% of all rated companies) 67% of Board Members are women or racially diverse 51% of Senior Management are women 97% of shareholders approved Executive Compensation How ESG guides our decision making: Risk Management framework development and governance Board of Directors oversight & governance Executive Compensation structure Compliance, Ethics and Code of Conduct policymaking
$90 $33 $29 $47 $38 $63 $119 $80 $37 $0 2017 2018 2019 2020 Net Debt Cash $117 $213 $257 $161 $29 $47 $38 $63$146 $260 $295 $224 2017 2018 2019 2020 Borrowing Availability Cash The balance sheet continues to strengthen 1 Borrowing Availability is based on maximum borrowing availability under our most restrictive covenant, which was Minimum Asset Coverage for 2020. 2 Total Debt to Capital calculated as total debt divided by the sum of total debt plus shareholders’ equity. 3 Calculated as net cash provided by operating activities, minus purchases for property and equipment. See the appendix to this presentation and “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. 3 Amounts in millions Amounts in millions $232 $78 $109 $65 $125 2016 2017 2018 2019 2020 18% 12% 6% 0% 2017 2018 2019 2020 ¹
Strong track record of returning capital to shareholders $169 million of capital returned to shareholders via share repurchases over the last five years (2016-2020) 3.6M shares repurchased 9% reduction in shares outstanding 1 Year 6.8M shares repurchased 17% reduction in shares outstanding 8.6M shares repurchased 21% reduction in shares outstanding 3 Years 5 Years
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies. Non-GAAP Measure Definition Purpose of Adjusted Measures Free cash flow Net cash provided by operating activities, minus cash purchases for property and equipment. - Used by management to assess cash flows. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOWS (Unaudited) 2020 2019 2018 2017 2016 2015 52 Weeks Ended 52 Weeks Ended 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended 52 Weeks Ended (in thousands) Dec 27, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Dec 25, 2015 Net cash provided by operating activities $ 152,531 $ 93,531 $ 125,692 $ 100,134 $ 260,703 $ 72,072 Capital expenditures (27,066) (28,119) (17,054) (21,958) (29,042) (18,394) Free cash flows $ 125,465 $ 65,412 $ 108,638 $ 78,176 $ 231,661 $ 53,678