Market Closed –
|
5-day change | 1st Jan Change | ||
7.660 USD |
+0.79% |
+2.68% |
-50.07% |
November 04, 2024 at 05:11 pm EST
Investor Roadshow Presentation
NOVEMBER 2024
Forward-Looking Statements
This presentation contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in demand, and expected growth from our digital investments, 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 presentation 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, which can be negatively impacted by factors such as rising interest rates, inflation, political instability, epidemics and global trade uncertainty, (2) our ability to maintain profit margins, (3) our ability to successfully execute on business strategies and further digitalize our business model, (4) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (5) our ability to attract and retain clients, (6) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (7) new laws, regulations, and government incentives that could affect our operations or financial results, (8) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit, and (9) the timing and amount of common stock repurchases, if any, which will be determined at management’s discretion and depend upon several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. Other information regarding factors that could affect our results is included in our Securities and 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. 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
Market leader in U.S. industrial staffing and global RPO with increasingly diverse service offerings to meet evolving client needs
Highly fragmented industry with strong secular growth drivers
Advancing technology applications and expanding in high-growth end markets with a simplified structure to deliver long-term, profitable growth
Strong balance sheet and cash flow to support future growth opportunities and the return of excess capital to shareholders
Experienced
Leadership
Team
Deep human capital expertise with proven success driving growth and delivering value to stakeholders
Our Mission: Connecting People and Work
67,000 |
Clients served annually |
with strong diversity1 |
|
464,000 |
work during 2023 |
People connected to |
One of the largest U.S. industrial staffing providers
One of the largest global RPO providers
2023 Revenue
$1.9B
Returning Value to
Shareholders
(Share repurchases last 5 years)
$203M
All segments earned the Top Workplaces USA Award issued by Energage
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 2023
Solving Workforce Challenges
Companies turn to human capital experts with innovative workforce solutions to solve
growing talent challenges
Digital |
Artificial |
Engagement |
Intelligence |
The worker |
Companies are |
supply chain is |
seeking ways to |
becoming |
become more |
increasingly |
nimble and |
decentralized. |
efficient |
TrueBlue’s digital |
Deploying AI to |
strategy connects |
source human |
people anywhere at |
capital will be a |
any time. |
competitive |
differentiator. |
Workforce Complexity
Many factors, including globalization, the “gig” economy and diversity are changing the world of work requiring a disciplined approach to hiring.
A robust value proposition with high-touch, specialized, digital solutions for industrial staffing and recruitment process outsourcing.
Three specialized segments meet diverse client needs
On-demand general and |
Talent solutions for outsourcing the recruiting |
Contingent, on-site industrial staffing |
skilled labor for industrial jobs |
process for permanent employees |
and commercial driver services |
PeopleScout PeopleManagement
Revenue mix1
Segment profit mix1
Incremental
Segment profit margin2
58%
44%
PeopleReady
15 – 20%
1 Revenue and segment profit calculations based on FY 2023. 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 Average, estimated margin associated with additional organic revenue.
US Industrial Staffing:
A Large and Attractive Market
United States Staffing Market ~$200B1
Represents ~30% of $640B global staffing market
Industrial temporary staffing ($34B)
One of the largest U.S. segments (~20%)
General |
On-site |
On-site |
Trucking |
Skilled |
On Demand |
Hourly |
Cost Per Unit |
Trades |
|
Labor |
Why Industrial Staffing?
One of the largest segments of the U.S. staffing industry ($34B in 2023)- Highly fragmented with no dominant competition
Digital adoption by the industry can expand growth opportunity, like rideshare companies did for the taxi industry- Unique growth opportunity to fill key skilled trades positions as baby boomers retire
- The Biden Administration’s infrastructure and clean energy plans are expected to inject billions into the labor market
- The industry rebounds quickly in the early stages of a recovery
|
|
Note, industrial temporary staffing includes various occupations such as: laborers, |
|
packers, construction workers, skilled trades, machinists, janitors, etc. |
7 |
Recruitment Process Outsourcing:
High margin plus double-digit revenue growth
Global RPO Market ~$6B1
Strong history of growth with a 2017-2023 market CAGR of ~10%
Further market expansion expected largely driven by first-generation buyers representing ~90% of new deals
North America represents ~50% followed by
EMEA (~30%) and APAC (~20%)
Why RPO?
Nascent market with no single dominant player- Traditionally sticky business model with high client retention and engagement
- Industry produced double-digit annual revenue growth historically and recovered swiftly from recent recession
- Industry poised for growth as companies seek new solutions to increasing labor challenges
|
8 |
Strong position to capitalize on growth opportunities
PEOPLE
5,000+ talented, dedicated and mission driven people
EXPERIENCE
30 years of industry experience and deep client relationships
Tremendous strengths and assets to drive our success, capitalizing on growth opportunities, enhancing shareholder
value and advancing
our mission to connect
people and work
TECHNOLOGY
Sophisticated technology providing a differentiated user experience
MARKET PRESENCE Significant scale and expansive local market presence
Focused strategy, leveraging our strengths to deliver
long-term, profitable growth
DIGITAL
TRANSFORMATION
Position our contingent staffing business to compete in a digital-forward future- Provide a differentiated experience with proprietary technology
Drive efficiencies to optimize our reach and engagement
MARKET
EXPANSION
Expand in high-growth, less- cyclical and underpenetrated end markets- Capitalize on secular growth opportunities to deliver long- term, sustainable growth
- Diversify our business to increase market share and revenue potential
SIMPLIFIED
STRUCTURE
Increase focus on operational excellence, cross-selling and innovation- Drive efficiencies and bring our teams closer to clients and associates
- Leverage strengths and synergies to deliver profitable growth
Attachments
Original document
Permalink
Disclaimer
TrueBlue Inc. published this content on November 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 04, 2024 at 22:11:31.339.
TrueBlue, Inc. is a provider of specialized workforce solutions. It operates through three segments: PeopleReady, PeopleScout and PeopleManagement. The PeopleReady segment provides on-demand and skilled labor in a range of industries, such as construction, transportation, manufacturing, retail, hospitality, and renewable energy. The PeopleScout segment provides permanent employee recruitment process outsourcing, employer branding services and management of outsourced labor service providers through the operating segments: PeopleScout Recruitment Process Outsourcing (RPO), which outsources recruitment of permanent employees on behalf of clients and employer branding services; and PeopleScout managed service provider (MSP), which manages multiple third-party staffing vendors on behalf of clients. It also provides talent advisory solutions. The PeopleManagement segment offers contingent, on-site industrial staffing and commercial driver services primarily on-site at the clientâs facility.
Buy
Last Close Price
7.660USD
Average target price
11.67USD
Spread / Average Target
+52.31%