TRUEBLUE REPORTS FIRST QUARTER 2022 RESULTS
Strong results driven by revenue growth across all segments and operating margin expansion

TACOMA, WASH. - Apr. 25, 2022 -- TrueBlue (NYSE:TBI) today announced its first quarter results for 2022.

First quarter revenue was $552 million, an increase of 20 percent compared to revenue of $459 million in the first quarter of 2021. Net income per diluted share was $0.30 compared to net income per diluted share of $0.20 in the first quarter of 2021. First quarter adjusted net income1 per diluted share was $0.44 compared to adjusted net income per diluted share of $0.25 in the first quarter of 2021.

“We are off to a strong start to the year with our fourth consecutive quarter of double-digit revenue growth and continued operating margin expansion,” said Patrick Beharelle, CEO of TrueBlue. “I’m pleased to report revenue growth across all three segments as we continue to capitalize on widespread demand for our services. PeopleReady revenue growth benefited from bill rate increases and worker supply improvement, while PeopleScout delivered a fourth consecutive quarter of growth driven by new and existing client demand. We are also pleased with the revenue growth in our PeopleManagement business despite global supply chain challenges.

“Our ongoing commitment to our digital strategies combined with our focus on improving operational efficiencies are driving operating margin expansion and creating a competitive advantage for us in the market,” Mr. Beharelle continued. “With these strategies in place, we are well-positioned for long-term, profitable growth.”

2022 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 first quarter 2022 results on a webcast at 2:30 p.m. PT (5:30 p.m. ET), today, Monday, Apr. 25, 2022. 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 2021, TrueBlue connected approximately 615,000 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 for more information regarding non-GAAP terms.

Forward-looking statements and non-GAAP financial measures

This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, 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 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 attract sufficient qualified candidates and employees to meet the needs of our clients, (4) our ability to attract and retain clients, (5) our ability to maintain profit margins, (6) our ability to successfully execute on business strategies to further digitalize our business model, (7) 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, (8) new laws, regulations, and government incentives that could affect our operations or financial results, (9) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, and (10) 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
(in thousands, except per share data)Mar 27, 2022Mar 28, 2021
Revenue from services$551,515 $458,706 
Cost of services411,670 348,132 
Gross profit139,845 110,574 
Selling, general and administrative expense120,568 97,401 
Depreciation and amortization7,287 6,962 
Income from operations11,990 6,211 
Interest expense and other income, net505 575 
Income before tax expense (benefit)12,495 6,786 
Income tax expense (benefit)1,976 (112)
Net income$10,519 $6,898 
Net income per common share:
Basic$0.31 $0.20 
Diluted$0.30 $0.20 
Weighted average shares outstanding:
Basic33,929 34,674 
Diluted34,544 35,066 


TRUEBLUE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)Mar 27, 2022Dec 26, 2021
ASSETS
Cash and cash equivalents$36,720 $49,896 
Accounts receivable, net325,197 353,882 
Other current assets36,432 41,295 
Total current assets398,349 445,073 
Property and equipment, net87,751 88,090 
Restricted cash and investments216,163 221,026 
Goodwill and intangible assets, net115,383 116,749 
Other assets, net163,273 162,288 
Total assets$980,919 $1,033,226 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and other accrued expenses$63,544 $77,172 
Accrued wages and benefits81,142 100,173 
Current portion of workers’ compensation claims reserve58,890 61,596 
Other current liabilities22,321 19,605 
Total current liabilities225,897 258,546 
Workers’ compensation claims reserve, less current portion197,472 194,598 
Long-term debt, less current portion4,000 — 
Other long-term liabilities85,999 87,015 
Total liabilities513,368 540,159 
Shareholders’ equity467,551 493,067 
Total liabilities and shareholders’ equity$980,919 $1,033,226 


























TRUEBLUE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
13 weeks ended
(in thousands)Mar 27, 2022Mar 28, 2021
Cash flows from operating activities:
Net income$10,519 $6,898 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,287 6,962 
Provision for credit losses989 207 
Stock-based compensation3,812 3,343 
Deferred income taxes1,258 (5,002)
Non-cash lease expense3,281 3,920 
Other operating activities2,608 (438)
Changes in operating assets and liabilities:
Accounts receivable27,702 18,025 
Income tax receivable(1,252)4,910 
Operating lease right-of-use-asset— 3,501 
Other assets4,267 (4,578)
Accounts payable and other accrued expenses(13,257)(9,633)
Accrued wages and benefits(19,031)4,249 
Workers’ compensation claims reserve168 (1,499)
Operating lease liabilities(3,319)(3,320)
Other liabilities1,410 338 
Net cash provided by operating activities26,442 27,883 
Cash flows from investing activities:
Capital expenditures(5,779)(10,003)
Purchases of restricted available-for-sale investments— (14)
Sales of restricted available-for-sale investments— 452 
Maturities of restricted held-to-maturity investments6,034 6,371 
Net cash provided by (used in) investing activities255 (3,194)
Cash flows from financing activities:
Purchases and retirement of common stock(36,326)— 
Net proceeds from employee stock purchase plans319 255 
Common stock repurchases for taxes upon vesting of restricted stock(3,970)(2,555)
Net change in revolving credit facility4,000 — 
Other(72)(94)
Net cash used in financing activities(36,049)(2,394)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(57)262 
Net change in cash, cash equivalents, and restricted cash(9,409)22,557 
Cash, cash equivalents and restricted cash, beginning of period103,185 118,612 
Cash, cash equivalents and restricted cash, end of period$93,776 $141,169 



TRUEBLUE, INC.
SEGMENT DATA
(Unaudited)

13 weeks ended
(in thousands)Mar 27, 2022Mar 28, 2021
Revenue from services:
PeopleReady$305,690 $260,392 
PeopleManagement163,819 151,754 
PeopleScout82,006 46,560 
Total company$551,515 $458,706 
Segment profit (1):
PeopleReady$16,219 $11,860 
PeopleManagement2,979 3,116 
PeopleScout10,972 4,037 
Total segment profit30,170 19,013 
Corporate unallocated expense(7,298)(5,619)
Total company Adjusted EBITDA (2)
22,872 13,394 
Third-party processing fees for hiring tax credits (3)(162)(135)
Amortization of software as a service assets (4)(747)(673)
PeopleReady technology implementation costs (5)(2,550)— 
COVID-19 government subsidies, net— 1,743 
Other adjustments, net (6)(136)(1,156)
EBITDA (2)
19,277 13,173 
Depreciation and amortization (7,287)(6,962)
Interest expense and other income, net505 575 
Income before tax benefit (expense)12,495 6,786 
Income tax benefit (expense)(1,976)112 
Net income$10,519 $6,898 
(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)Implementation costs associated with upgrading legacy PeopleReady technology with a new platform.
(6)Other adjustments for the 13 weeks ended March 27, 2022 include costs of $0.1 million incurred while transitioning to a new third party administrator for workers’ compensation. Other adjustments for the 13 weeks ended March 28, 2021 primarily include costs of $0.8 million incurred while transitioning into our new Chicago office.


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 measureDefinitionPurpose of adjusted measures
Adjusted net income and Adjusted net income per diluted share
Net income and net income per diluted share, excluding:
–amortization of intangibles,
–amortization of software as a service assets,
–accelerated depreciation,
–PeopleReady technology implementation costs,
–COVID-19 government subsidies, net,
–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.
–Provides a measure, among others, used in the determination of incentive compensation for management.

EBITDA and
Adjusted EBITDA
EBITDA excludes from net income:
–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,
–PeopleReady technology implementation costs,
–COVID-19 government subsidies, net, 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 SG&A expenses
Selling, general and administrative expenses excluding:
–third-party processing fees for hiring tax credits,
–amortization of software as a service assets,
–PeopleReady technology implementation costs,
–COVID-19 government subsidies, net, and
–other adjustments, net.

–Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.


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)Mar 27, 2022Mar 28, 2021
Net income$10,519 $6,898 
Amortization of intangible assets1,502 1,885 
Amortization of software as a service assets (1)747 673 
Accelerated depreciation (2)516 — 
PeopleReady technology implementation costs (3)2,550 — 
COVID-19 government subsidies, net (4)— (1,743)
Other adjustments, net (5)136 1,156 
Tax effect of adjustments to net income (6)(862)33 
Adjusted net income$15,108 $8,902 
Adjusted net income per diluted share$0.44 $0.25 
Diluted weighted average shares outstanding34,544 35,066 
2.RECONCILIATION OF U.S. GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
13 weeks ended
(in thousands)Mar 27, 2022Mar 28, 2021
Net income$10,519 $6,898 
Income tax expense1,976 (112)
Interest expense and other (income), net(505)(575)
Depreciation and amortization7,287 6,962 
EBITDA19,277 13,173 
Third-party processing fees for hiring tax credits (7)162 135 
Amortization of software as a service assets (1)747 673 
PeopleReady technology implementation costs (3)2,550 — 
COVID-19 government subsidies, net (4)— (1,743)
Other adjustments, net (5)136 1,156 
Adjusted EBITDA $22,872 $13,394 
Margin / % of revenue:
Net income1.9%1.5%
Adjusted EBITDA 4.1%2.9%
3.RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO ADJUSTED SG&A EXPENSES
(Unaudited)
13 weeks ended
(in thousands)Mar 27, 2022Mar 28, 2021
Selling, general and administrative expenses$120,568 $97,401 
Third-party processing fees for hiring tax credits (7)(162)(135)
Amortization of software as a service assets (1)(747)(673)
PeopleReady technology implementation costs (3)(2,550)— 
COVID-19 government subsidies, net (4)— 1,618 
Other adjustments, net (5)(136)(1,156)
Adjusted SG&A expenses $116,973 $97,055 



(1)Amortization of software as a service assets is reported in selling, general and administrative expense.

(2)Accelerated depreciation for the existing systems being replaced by the new PeopleReady technology platform.

(3)Implementation costs associated with upgrading legacy PeopleReady technology with a new platform.

(4)Net impact of COVID-19 related government subsidies of $1.7 million ($0.1 million in cost of services and $1.6 million in selling, general and administrative expenses).

(5)Other adjustments for the 13 weeks ended March 27, 2022 include costs of $0.1 million incurred while transitioning to a new third party administrator for workers’ compensation. Other adjustments for the 13 weeks ended March 28, 2021 primarily include costs of $0.8 million incurred while transitioning into our new Chicago office.

(6)Total tax effect of each of the adjustments to U.S. GAAP net income using the effective income tax rate for the respective periods.

(7)These third-party processing fees are associated with generating hiring tax credits.