Revenues & Adjusted EBITDA above
Previously Announced Estimates
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, today reported results
for the quarter ended June 30, 2015.
Second Quarter Highlights
- Effective June 5, 2015, acquired
Creative Circle, LLC ("Creative Circle"), one of the largest
digital/creative staffing firms in North America, for $570 million
in cash and stock, plus contingent consideration of up to $30
million.
- Revenues were $485.3 million; up 11.7
percent year-over-year (12.8 percent on a constant currency
basis).
- Revenues, excluding the contribution
from acquisitions, were $463.5 million ($468.1 million on a
constant currency basis), up 6.7 percent (7.8 percent on a constant
currency basis) and above the high-end of our financial
estimates.
- Adjusted EBITDA (a non-GAAP measure
defined below) was $56.0 million. Adjusted EBITDA included $4.9
million from Creative Circle. Excluding the contribution from
Creative Circle, Adjusted EBITDA was $51.1 million and towards the
high-end of our financial estimates.
- Adjusted income from continuing
operations (a non-GAAP measure defined below) was $32.3 million
($0.61 per diluted share). Excluding the contribution from Creative
Circle, Adjusted income from continuing operations was $28.8
million ($0.55 per share) and was towards the high-end of our
financial estimates.
- In conjunction with the Creative Circle
acquisition, entered into a new $975 million credit facility,
comprised of an $825 million seven-year term loan and a $150
million revolving credit facility. After the closing of Creative
Circle, $875 million was outstanding under the facility.
- Leverage ratio (total indebtedness to
trailing 12 months Adjusted EBITDA) was 3.51 to 1 at June 30, 2015,
up from 2.06 to 1 at December 31, 2014.
Commenting on the results, Peter Dameris, President and Chief
Executive Officer of On Assignment, Inc., said, "We are pleased
with our strategic and operational accomplishments during the
quarter. The acquisition of Creative Circle positions us well in
the fast growing digital/creative staffing space allowing us to
engage the CMO along with the CIO to provide solutions that meet
the growing needs of both groups while driving greater demand for
our traditional services.
"Our financial performance for the quarter was enhanced by the
acquisition of Creative Circle, which was accretive on a GAAP and
an Adjusted Earnings basis. Excluding the contribution from
Creative Circle, our results (adjusted mainly for
acquisition-related costs and the write-off of loan costs
associated with our old credit facility) were at or above the
high-end of our previously announced financial estimates for the
quarter. Our revenue growth rates were higher than expected and
reflected a slight re-acceleration in our growth rate for the first
time in four quarters. Our cash generation during the quarter was
strong and permitted us to pay down our indebtedness by $25 million
prior to the end of the quarter and we expect to voluntarily pay
down an additional $25 million by the end of July."
Second Quarter 2015 Financial Results
Revenues for the quarter were $485.3 million ($489.9 million on
a constant currency basis), up 11.7 percent (12.8 percent on a
constant currency basis) year-over-year. Constant currency revenues
and growth rates for the quarter were calculated using the foreign
currency exchange rates from the same period in the prior year.
Revenues included $21.8 million from two businesses acquired
during the quarter (Creative Circle and a small Life Sciences
business in Europe), which are included in consolidated results
from the date of acquisition. The revenue contribution from
Creative Circle was $19.6 million, and the contribution from the
Life Sciences business was $2.2 million. Revenues, excluding the
contribution from acquisitions, were $463.5 million ($468.1 million
on a constant currency basis), up 6.7 percent (7.8 percent on a
constant currency basis) and above the high-end of our financial
estimates.
Operating results of Creative Circle are included in the Apex
Segment. The Life Sciences European business is now included in the
Oxford Segment for reporting purposes. The operating and
statistical data for the Oxford Segment have been adjusted to
reflect this change in reporting.
Direct hire and conversion revenues were $28.7 million, up 33.8
percent year-over-year, which included $1.5 million from Creative
Circle. CyberCoders accounted for 72.6 percent of the total and was
up 28.0 percent year-over-year. Direct hire and conversion revenues
were 5.9 percent of total revenues for the quarter, up from 4.9
percent in the second quarter of 2014.
Our largest segment, Apex, accounted for 69.8 percent of total
revenues. Apex grew 13.7 percent year-over-year, on a reported
basis, which included $19.6 million in revenues from Creative
Circle. Excluding the contribution from Creative Circle, Apex grew
7.1 percent year-over-year for the quarter.
Our Oxford Segment accounted for 30.2 percent of total revenues.
Oxford grew 7.4 percent year-over-year on a reported basis, which
included $2.2 million in revenues from an acquired business. On a
constant currency basis and excluding the contribution from the
acquired Life Sciences business, Oxford grew 9.1 percent
year-over-year for the quarter.
Gross profit was $158.5 million, up $16.6 million or 11.7
percent year-over-year. Gross margin for the quarter was 32.7
percent.
Selling, general and administrative (“SG&A”) expenses were
$118.9 million (24.5 percent of revenues), up from $99.6 million
(22.9 percent of revenues) in the second quarter of 2014. SG&A
expenses for the quarter included SG&A from Creative Circle of
$4.0 million, acquisition, integration and strategic planning
expenses of $6.9 million, and $0.5 million related to the write-off
of an IT application. Excluding these expenses, SG&A expense
was approximately $107.5 million and within our previously
announced financial estimates.
Amortization of intangible assets was $7.0 million, compared
with $5.5 million in the second quarter of 2014. The increase in
amortization mainly related to the acquisition of Creative
Circle.
Interest expense for the quarter was $4.7 million compared with
$3.1 million in the second quarter of 2014. Interest expense for
the quarter was comprised of interest on the credit facility of
$4.2 million and amortization of deferred loan costs of $0.5
million.
Write-off of loan costs totaled $3.8 million ($2.3 million,
$0.04 per diluted share, after tax) and related to the refinancing
of the credit facility in June.
The leverage ratio (total indebtedness to trailing 12 months
Adjusted EBITDA) at June 30, 2015 was 3.51 to 1, up from 2.06 to 1
at December 31, 2014. The increase in the leverage ratio related to
borrowing to fund the acquisition of Creative Circle.
The effective income tax rate for the quarter was 40.8 percent,
a slight decrease from the 41.2 percent for the full year 2014.
Adjusted EBITDA (a non-GAAP measure defined below) was $56.0
million. The Adjusted EBITDA contribution from Creative Circle was
$4.9 million. Excluding the contribution from Creative Circle,
Adjusted EBITDA was $51.1 million and towards the high-end of our
previously announced financial estimates.
Adjusted income from continuing operations (a non-GAAP measure
as calculated in an accompanying table) was $32.3 million ($0.61
per diluted share). Net income on a GAAP basis was $14.3 million
($0.27 per diluted share). Net income included acquisition,
integration and strategic planning expenses of $6.9 million ($4.6
million after tax, or $0.09 per diluted share), $0.5 million
related to the write-off of an IT application ($0.3 million after
tax or $0.01 per diluted share) and the write-off of deferred loan
costs of $3.8 million ($2.3 million after tax or $0.04 per diluted
share).
Creative Circle Acquisition
On June 5, 2015 the Company completed its acquisition of
privately-held Creative Circle, LLC for $570 million, and up to an
additional $30 million based on operating performance during 2015.
In connection with the acquisition, the Company obtained a secured
financing commitment for $975 million from Wells Fargo Bank,
National Association. The new credit facility consists of a $150
million revolving credit facility and an $825 million term loan.
Proceeds from the facility were used to fund the cash portion of
the purchase price and refinance the Company's existing debt.
Financial Estimates for Q3 2015
On Assignment is providing financial estimates for continuing
operations for the third quarter of 2015. These estimates do not
include acquisition, integration, or strategic planning expenses
and assume no deterioration in the staffing markets that On
Assignment serves. The following estimates assume billable days of
63.5 for the quarter, which is the same as the preceding quarter.
These estimates also assume no further deterioration in foreign
exchange rates.
- Revenues of $550.0 million to $555.0
million
- Gross margin of 33.5 percent to 33.8
percent
- SG&A expense (excludes amortization
of intangible assets) of $124.8 to $125.8 million (includes $4.3
million in depreciation and $5.5 million in equity-based
compensation expense)
- Amortization of intangible assets of
$11.4 million
- Adjusted EBITDA of $69.0 million to
$71.5 million
- Effective tax rate of 40.9 percent
- Adjusted income from continuing
operations of $39.7 million to $41.2 million
- Adjusted income from continuing
operations per diluted share of $0.74 to $0.77
- Income from continuing operations of
$22.6 million to $24.1 million
- Income from continuing operations per
diluted share of $0.42 to $0.45
- Diluted shares outstanding of 53.4
million
Conference Call
On Assignment will hold a conference call today at 4:30 p.m. EDT
to review its second quarter financial results. The dial-in number
is 800-553-0318 (+1-612-332-0107 for callers outside the United
States) and the conference ID number is 364192. Participants should
dial in ten minutes before the call.
A replay of the conference call will be available beginning
today at 6:30 p.m. EDT and ending at 11:59 p.m. EDT on August 13,
2015. The access number for the replay is 800-475-6701
(+1-320-365-3844 outside the United States) and the conference ID
number is 364192.
This call is being webcast by Thomson/CCBN and can be
accessed via On Assignment's web site at www.onassignment.com. Individual investors can
also listen at Thomson/CCBN's site at www.fulldisclosure.com or by visiting any of the
investor sites in Thomson/CCBN's Individual Investor Network.
About On Assignment
On Assignment, Inc. is a leading global provider of in-demand,
skilled professionals in the growing technology, life sciences, and
creative sectors, where quality people are the key to success. The
Company goes beyond matching résumés with job descriptions to match
people they know into positions they understand for temporary,
contract-to-hire, and direct hire assignments. Clients recognize On
Assignment for its quality candidates, quick response, and
successful assignments. Professionals think of On Assignment as
career-building partners with the depth and breadth of experience
to help them reach their goals.
On Assignment, which is based in Calabasas,
California, was founded in 1985 and went public in 1992. The
Company has a network of branch offices throughout the United
States, Canada, United Kingdom, and Europe. To learn
more, visit http://www.onassignment.com.
Reasons for Presentation of Non-GAAP Financial
Measures
Statements in this release and the accompanying Supplemental
Financial Information include non-GAAP financial measures. Such
information is provided as additional information, not as an
alternative to our consolidated financial statements presented in
accordance with Generally Accepted Accounting Principles in the
United States ("GAAP"), and is intended to enhance an overall
understanding of our current financial performance. The
Supplemental Financial Information sets forth financial measures
reviewed by our management to evaluate our operating performance.
Such measures also are used to determine a portion of the
compensation for some of our executives and employees. We believe
the non-GAAP financial measures provide useful information to
management, investors and prospective investors by excluding
certain charges and other amounts that we believe are not
indicative of our core operating results. These non-GAAP measures
are included to provide management, our investors and prospective
investors with an alternative method for assessing our operating
results in a manner that is focused on the performance of our
ongoing operations and to provide a more consistent basis for
comparison between quarters. One of the non-GAAP financial measures
presented is EBITDA (earnings before interest, taxes, depreciation,
and amortization of intangible assets), other terms include
Adjusted EBITDA (EBITDA plus equity-based compensation expense,
impairment charges, write-off of loan costs, and acquisition,
integration and strategic planning expenses) and Non-GAAP income
from continuing operations (Income from continuing operations, plus
write-off of loan costs, and acquisition, integration and strategic
planning expenses, net of tax) and Adjusted income from continuing
operations and related per share amounts. These terms might not be
calculated in the same manner as, and thus might not be comparable
to, similarly titled measures reported by other companies. The
financial statement tables that accompany this press release
include a reconciliation of each non-GAAP financial measure to the
most directly comparable GAAP financial measure.
Safe Harbor
Certain statements made in this news release are
“forward-looking statements” within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended, and involve a
high degree of risk and uncertainty. Forward-looking statements
include statements regarding the Company's anticipated financial
and operating performance in 2015. All statements in this release,
other than those setting forth strictly historical information, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance, and actual results might differ
materially. In particular, the Company makes no assurances that the
estimates of revenues, gross margin, SG&A, Adjusted EBITDA,
income from continuing operations, adjusted income from continuing
operations, earnings per share or earnings per diluted share set
forth above will be achieved. Factors that could cause or
contribute to such differences include actual demand for our
services, our ability to attract, train and retain qualified
staffing consultants, our ability to remain competitive in
obtaining and retaining temporary staffing clients, the
availability of qualified temporary professionals, management of
our growth, continued performance of our enterprise-wide
information systems, our ability to manage our potential or actual
litigation matters, the successful integration of our recently
acquired subsidiaries, the successful implementation of our
five-year strategic plan, and other risks detailed from time to
time in our reports filed with the Securities and Exchange
Commission ("SEC"), including our Annual Report on Form 10-K for
the year ended December 31, 2014, as filed with the SEC on March 2,
2015, our Quarterly Report on Form 10-Q for the quarter ended March
31, 2015 as filed with the SEC on May 8, 2015, and our Current
Report on Form 8-K filed with the SEC on June 5, 2015. We
specifically disclaim any intention or duty to update any
forward-looking statements contained in this news release.
SUMMARY CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Six Months Ended June 30,
March 31, June 30, 2015
2014 (1)
2015 2015
2014 (1)
Revenues $ 485,323 $ 434,424 $ 430,045 $ 915,368 $
841,275 Cost of services 326,789 292,519
294,170 620,959 571,215
Gross profit 158,534 141,905 135,875 294,409 270,060
Selling, general and administrative expenses 118,867 99,614 105,935
224,802 195,723 Amortization of intangible assets 6,957
5,522 4,869 11,826
11,060 Operating income 32,710 36,769 25,071 57,781
63,277 Interest expense, net (4,736 ) (3,103 ) (3,067 ) (7,803 )
(6,431 ) Write-off of loan costs (3,751 ) —
— (3,751 ) — Income before
income taxes 24,223 33,666 22,004 46,227 56,846 Provision for
income taxes 9,888 14,025 8,981
18,869 23,600 Income from
continuing operations 14,335 19,641 13,023 27,358 33,246 Gain on
sale of discontinued operations, net of tax — — 25,703 25,703 —
Income (loss) from discontinued
operations, net of tax
(83 ) 1,148 409 326
1,460 Net income $ 14,252 $ 20,789
$ 39,135 $ 53,387 $ 34,706 Basic
earnings per common share: Income from continuing operations $ 0.28
$ 0.36 $ 0.25 $ 0.53 $ 0.61
Income (loss) from discontinued
operations
(0.01 ) 0.02 0.51 0.50
0.03 $ 0.27 $ 0.38 $ 0.76
$ 1.03 $ 0.64 Diluted earnings per common
share: Income from continuing operations $ 0.27 $ 0.36 $ 0.25 $
0.52 $ 0.60 Income from discontinued operations —
0.02 0.50 0.50
0.03 $ 0.27 $ 0.38 $ 0.75 $ 1.02
$ 0.63 Number of shares and share equivalents used to
calculate earnings per share: Basic 51,978
54,372 51,519 51,749
54,239 Diluted 52,633 55,173
52,209 52,435 55,098
______
(1) Amounts have been restated to give retroactive effect to
the sale of our Physician Segment on February 1, 2015, and the
closure of our European retained search unit in the fourth quarter
of 2014. The results of these businesses are included in
discontinued operations for all periods presented. Accordingly, the
results shown above differ from the results in our previous filings
with the Securities and Exchange Commission ("SEC").
SUPPLEMENTAL SEGMENT FINANCIAL
INFORMATION(1) (Unaudited)
(In thousands)
Three Months Ended Six Months Ended June 30,
March 31, June 30, 2015
2014 (2)
2015 2015
2014 (2)
Revenues: Apex $ 338,704 $ 297,893 $ 294,293 $ 632,997 $ 576,301
Oxford 146,619 136,531 135,752 282,371
264,974 $ 485,323 $ 434,424 $ 430,045 $ 915,368 $ 841,275
Gross profit: Apex $ 97,652 $ 84,677 $ 79,643 $ 177,295 $
160,183 Oxford 60,882 57,228 56,232
117,114 109,877 $ 158,534 $ 141,905 $ 135,875 $ 294,409 $
270,060
______
(1) The segments reported above reflect our new segment
configuration. The Oxford segment now includes our former Life
Sciences Europe segment. (2) Amounts have been restated to give
retroactive effect to the sale of our Physician Segment on February
1, 2015, and the closure of our European retained search unit in
the fourth quarter of 2014. The results of these businesses are
included in discontinued operations for all periods presented.
Accordingly, the results shown above differ from the results in our
previous filings with the SEC.
SELECTED CASH FLOW INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Six Months Ended June 30,
March 31, June 30, 2015 2014
2015 (1)
2015 (1)
2014
Cash provided by operations
$ 32,477 $ 29,330 $ 19,943 $ 52,420 $ 25,009 Capital expenditures $
5,331 $ 5,618 $ 8,000 $ 13,331 $ 9,638
SELECTED CONSOLIDATED BALANCE SHEET
DATA (Unaudited)
(In thousands)
June 30, March 31, 2015 2015 Cash and cash
equivalents $ 41,863 $ 76,363 Accounts receivable, net 330,958
287,759 Goodwill and intangible assets, net 1,319,747 755,574 Total
assets 1,797,134 1,214,229 Current portion of long-term debt (2)
—
17,353 Total current liabilities 171,147 153,794 Working capital
246,551 255,080 Long-term debt (2) 830,085 313,801 Other long-term
liabilities 70,806 71,806 Stockholders’ equity 725,096 674,828
______
(1) Amounts include cash flows from our Physician Segment.
This segment generated a negative $1.8 million of cash flows from
operations and its capital expenditures were negligible during the
three months ended March 31, 2015. There were no cash flows from
the Physician Segment in the three months ended June 30, 2015.
(2)
March 31, 2015 balances have been adjusted
to reflect unamortized deferred loan costs attributable to term
loans as a reduction of the related debt balances. This change in
presentation was the result of early adopting Accounting Standard
Update 2015-03 Imputation of Interest (Subtopic 835-30) Simplifying
the Presentation of Debt Issuance Cost. The March 31, 2015 balances
are net of $0.9 million unamortized deferred loan costs for the
current portion of debt, and $2.5 million unamortized deferred loan
costs for the long term portion. The June 30, 2015 balance is net
of $19.9 million unamortized deferred loan costs.
RECONCILIATION OF GAAP INCOME FROM
CONTINUING OPERATIONS AND EARNINGS PER DILUTED SHARE TO NON-GAAP
ADJUSTED EBITDA AND ADJUSTED EBITDA PER DILUTED SHARE
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended June 30, 2015
2014 (1)
March 31, 2015 Net income $ 14,252 $ 0.27 $ 20,789 $
0.38 $ 39,135 $ 0.75
Income (loss) from discontinued
operations, net of tax
(83 ) — 1,148 0.02 26,112
0.50 Income from continuing operations 14,335 0.27 19,641 0.36
13,023 0.25 Interest expense, net 4,736 0.09 3,103 0.05 3,067 0.06
Write-off of loan costs 3,751 0.07 — — — — Provision for income
taxes 9,888 0.19 14,025 0.25 8,981 0.17 Depreciation 4,191 0.08
3,048 0.06 3,532 0.07 Amortization of intangible assets
6,957 0.13 5,522 0.10 4,869
0.09 EBITDA 43,858 0.83 45,339 0.82 33,472 0.64 Equity-based
compensation 5,236 0.10 3,926 0.07 3,954 0.08 Acquisition,
integration and strategic planning expenses 6,932
0.13 1,974 0.04 1,278 0.02
Adjusted EBITDA $ 56,026 $ 1.06 $ 51,239 $ 0.93 $ 38,704 $
0.74 Weighted average common and common equivalent shares
outstanding (diluted) 52,633 55,173
52,209 Six Months Ended June 30, 2015
2014 (1)
Net income $ 53,387 $ 1.02 $ 34,706 $ 0.63
Income from discontinued operations, net
of tax
26,029 0.50 1,460 0.03 Income from
continuing operations 27,358 0.52 33,246 0.60 Interest expense, net
7,803 0.14 6,431 0.12 Write-off of loan costs 3,751 0.07 — —
Provision for income taxes 18,869 0.36 23,600 0.43 Depreciation
7,723 0.15 5,570 0.10 Amortization of intangible assets
11,826 0.23 11,060 0.20 EBITDA 77,330 1.47
79,907 1.45 Equity-based compensation 9,190 0.18 7,008 0.12
Acquisition, integration and strategic planning expenses
8,210 0.16 2,562 0.05 Adjusted EBITDA $ 94,730
$ 1.81 $ 89,477 $ 1.62
Weighted average common and common
equivalent shares outstanding (diluted)
52,435 55,098
______
(1) Amounts have been restated to give retroactive effect to
the sale of our Physician Segment on February 1, 2015, and the
closure of our European retained search unit in the fourth quarter
of 2014. The results of these businesses are included in
discontinued operations for all periods presented. Accordingly, the
results shown above differ from the results in our previous filings
with the SEC.
RECONCILIATION OF GAAP INCOME AND
DILUTED EPS TO NON-GAAP INCOME AND DILUTED EPS (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended June 30, March 31, 2015
2014 (1)
2015 Net income $ 14,252 $ 0.27 $ 20,789 $ 0.38 $
39,135 $ 0.75
Income (loss) from discontinued
operations, net of tax
(83 ) — 1,148 0.02 26,112
0.50 Income from continuing operations 14,335 0.27 19,641 0.36
13,023 0.25
Write-off of loan costs, net of tax
2,288 0.04 — — — — Acquisition, integration and strategic planning
expenses, net of tax 4,578 0.09 1,204
0.02 780 0.01 Non-GAAP income from continuing
operations $ 21,201 $ 0.40 $ 20,845 $ 0.38 $ 13,803 $ 0.26
Weighted average common and common equivalent shares
outstanding (diluted) 52,633
55,173 52,209
Six Months Ended June 30, 2015
2014 (1)
Net income $ 53,387 $ 1.02 $ 34,706 $ 0.63
Income from discontinued operations, net
of tax
26,029 0.50 1,460 0.03 Income from
continuing operations 27,358 0.52 33,246 0.60 Write-off of loan
costs, net of tax 2,288 0.05 0 — Acquisition, integration and
strategic planning expenses, net of tax 5,358 0.10
1,563 0.03 Non-GAAP income from continuing operations
$ 35,004 $ 0.67 $ 34,809 $ 0.63
Weighted average common and common
equivalent shares outstanding (diluted)
52,435
55,098
______
(1) Amounts have been restated to give retroactive effect to
the sale of our Physician Segment on February 1, 2015, and the
closure of our European retained search unit in the fourth quarter
of 2014. The results of these businesses are included in
discontinued operations for all periods presented. Accordingly, the
results shown above differ from the results in our previous filings
with the SEC.
CALCULATION OF ADJUSTED EARNINGS PER
DILUTED SHARE (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Six Months Ended June 30,
2015
2014 (5)
2015
2014 (5)
Non-GAAP income from continuing operations (1) $ 21,201 $
20,845 $ 35,004 $ 34,809 Adjustments: Amortization of intangible
assets (2) 6,957 5,522 11,826 11,060 Cash tax savings on
indefinite-lived intangible assets (3) 4,791 3,807 8,673 7,614
Income taxes on amortization for financial reporting purposes not
deductible for income tax purposes (4) (607 ) (531 )
(1,112 ) (1,062 ) Adjusted income from continuing
operations $ 32,342 $ 29,643 $ 54,391 $ 52,421
Adjusted income from continuing operations per
diluted share $ 0.61 $ 0.54 $ 1.04 $ 0.95
Weighted average common and common equivalent shares
outstanding (diluted) 52,633 55,173
52,435 55,098
______
(1)
Non-GAAP income from continuing operations
as calculated on preceding page. Non-GAAP income from continuing
operations excludes the write-off of loan costs, and acquisition,
integration and strategic planning expenses.
(2) Amortization of intangible assets of acquired businesses. (3)
Income tax benefit (using 39 percent marginal tax rate) from
amortization for income tax purposes of certain indefinite-lived
intangible assets (goodwill and trademarks), on acquisitions in
which the Company received a step-up tax basis. For income tax
purposes, these assets are amortized on a straight-line basis over
15 years. For financial reporting purposes, these assets are not
amortized and a deferred tax provision is recorded that fully
offsets the cash tax benefit in the determination of net income.
(4) Income taxes (assuming a 39 percent marginal rate) on the
portion of amortization of intangible assets, which is not
deductible for income tax purposes (mainly amortization associated
with the acquisition of CyberCoders, Inc. that the Company was not
able to step-up the tax basis in those acquired assets for tax
purposes). (5) Amounts have been restated to exclude results of the
Physician Segment from continuing operations. The Physician Segment
was sold on February 1, 2015 and its results are now included in
discontinued operations.
SUPPLEMENTAL FINANCIAL AND OPERATING
DATA (1) (Unaudited)
Three Months Ended June 30, Mar. 31,
Dec. 31, Sept. 30, June 30, Mar. 31, 2015
2014 (2)
Revenues (in thousands): Apex $ 338,704
$ 294,293 $ 307,724 $ 306,027 $ 297,893 $ 278,408 Oxford
146,619 135,752 133,299
136,416 136,531 128,443
Consolidated $ 485,323 $ 430,045 $ 441,023 $ 442,443 $ 434,424 $
406,851 Direct hire and conversion revenues (in thousands):
Apex $ 6,285 $ 4,079 $ 4,146 $ 3,930 $ 3,988 $ 3,682 Oxford
22,446 19,825 15,970
18,523 17,483 15,312
Consolidated $ 28,731 $ 23,904 $ 20,116 $ 22,453 $ 21,471 $ 18,994
Gross margins: Apex 28.8 % 27.1 % 28.5 % 28.5 % 28.4 % 27.1
% Oxford 41.5 % 41.4 % 41.1 % 42.2 % 41.9 % 41.0 % Consolidated
32.7 % 31.6 % 32.3 % 32.7 % 32.7 % 31.5 % Average number of
staffing consultants: Apex 1,067 965 942 875 835 818 Oxford
983 922 870 845
835 828 Consolidated 2,050 1,887 1,812
1,720 1,670 1,646 Average number of customers: Apex 1,766
1,293 1,276 1,475 1,431 1,375 Oxford 1,092
1,027 1,050 1,013 1,005
985 Consolidated 2,858 2,320 2,326 2,488 2,436
2,360 Top 10 customers as a percentage of revenue: Apex 25.2
% 27.0 % 29.0 % 29.8 % 29.7 % 30.6 % Oxford 11.2 % 11.5 % 12.6 %
13.3 % 13.0 % 13.7 % Consolidated 17.6 % 18.5 % 20.3 % 20.6 % 20.4
% 20.9 % Average bill rate: Apex $ 54.99 $ 54.02 $ 54.59 $
54.65 $ 54.16 $ 53.89 Oxford $ 101.01 $ 103.17 $ 103.92 $ 102.33 $
102.95 $ 100.64 Consolidated $ 62.54 $ 62.06 $ 65.01 $ 62.56 $
62.51 $ 61.93 Gross profit per staffing consultant: Apex $
92,000 $ 83,000 $ 93,000 $ 100,000 $ 101,000 $ 92,000 Oxford $
62,000 $ 61,000 $ 63,000 $ 68,000 $ 69,000 $ 64,000 Consolidated $
77,000 $ 72,000 $ 79,000 $ 84,000 $ 85,000 $ 78,000
______
(1) The segments reported above reflect our new segment
configuration. The Oxford segment now includes our former Life
Sciences Europe segment. (2) Amounts have been restated to give
retroactive effect to the sale of our Physician Segment on February
1, 2015, and the closure of our European retained search unit in
the fourth quarter of 2014.
SUPPLEMENTAL FINANCIAL AND OPERATING
DATA (1) (2) (Unaudited)
Three Months Ended Dec. 31, Sept. 30,
June 30, Mar. 31, 2013 Revenues (in
thousands): Apex $ 281,032 $ 276,849 $ 262,347 $ 239,765 Oxford
115,038 117,551 118,431
112,087 Consolidated $ 396,070 $ 394,400 $ 380,778 $
351,852 Direct hire and conversion revenues (in thousands):
Apex $ 3,221 $ 3,414 $ 2,968 $ 3,229 Oxford 4,085
1,915 2,038 2,073
Consolidated $ 7,306 $ 5,329 $ 5,006 $ 5,302 Gross margins:
Apex 28.1 % 28.5 % 27.8 % 26.7 % Oxford 36.6 % 34.2 % 33.9 % 33.7 %
Consolidated 30.5 % 30.2 % 29.7 % 28.9 % Average number of
staffing consultants: Apex 805 796 777 772 Oxford 695
616 612 599 Consolidated
1,500 1,412 1,389 1,371 Average number of customers: Apex
1,381 1,345 1,331 1,312 Oxford 1,048 905
917 891 Consolidated 2,429 2,250
2,248 2,203 Top 10 customers as a percentage of revenue:
Apex 31.1 % 31.3 % 30.3 % 29.7 % Oxford 14.4 % 16.8 % 18.3 % 15.4 %
Consolidated 22.1 % 21.9 % 21.2 % 20.6 % Average bill rate:
Apex $ 53.41 $ 54.10 $ 54.26 $ 53.59 Oxford $ 102.24 $ 105.27 $
107.94 $ 107.07 Consolidated $ 61.55 $ 62.76 $ 63.84 $ 63.09
Gross profit per staffing consultant: Apex $ 98,000 $ 99,000 $
94,000 $ 83,000 Oxford $ 61,000 $ 65,000 $ 66,000 $ 63,000
Consolidated $ 81,000 $ 84,000 $ 81,000 $ 74,000
______
(1) The segments reported above reflect our new segment
configuration. The Oxford segment now includes our former Life
Sciences Europe segment. (2) Amounts have been restated to give
retroactive effect to the sale of our Physician Segment on February
1, 2015, and the closure of our European retained search unit in
the fourth quarter of 2014.
SUPPLEMENTAL FINANCIAL INFORMATION –
KEY METRICS (Unaudited)
Three Months Ended June 30, 2015 March 31,
2015 Percentage of revenues: Top ten clients 17.6% 18.5% Direct
hire/conversion 5.9% 5.6% Bill rate: % Sequential change
0.8% (4.5%) % Year-over-year change —% 0.2% Bill/Pay spread:
% Sequential change 1.2% (5.2%) % Year-over-year change (3.8%)
(2.2%) Average headcount: Contract professionals (CP) 15,506
12,318 Staffing consultants (SC) 2,050 1,887
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150729006707/en/
On Assignment, Inc.Ed PierceChief Financial Officer(818)
878-7900
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