Revenues, Adjusted EPS & 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 September 30, 2015.
Third Quarter Highlights
- Revenues were $572.1 million; up 29.3
percent year-over-year (30.3 percent on a constant currency basis).
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 on a pro forma basis were up
13.4 percent year-over-year (14.2 percent on a constant currency
basis). Pro forma results assume the acquisitions of Creative
Circle, LLC ("Creative Circle") and a small Life Sciences business
in Europe (the "Acquisitions") occurred at the beginning of
2014.
- Revenues, excluding the contribution
from the Acquisitions, were $496.4 million, up 12.2 percent
year-over-year (up 13.1 percent, on a constant currency
basis).
- Adjusted EBITDA (a non-GAAP measure
defined below) was $74.9 million, or 13.1 percent of revenues.
- Adjusted income from continuing
operations (a non-GAAP measure defined below) was $43.8 million
($0.82 per diluted share).
- Leverage ratio (total indebtedness to
trailing 12 months Adjusted EBITDA) was 3.21 to 1 at September 30,
2015, down from 3.51 to 1 at June 30, 2015.
- Raising revenue estimates for the
fourth quarter of 2015 to $563 million to $568 million (an increase
of $15 million to $20 million).
Commenting on the results, Peter Dameris, President and Chief
Executive Officer of On Assignment, Inc., said, "Our third quarter
results were strong on all financial metrics. Revenue growth,
Adjusted EBITDA, Adjusted EPS and free cash flow generation
exceeded our initial expectations. We are particularly pleased with
our higher revenue growth rates, which reflect, among other things,
the contributions from our "hiring surge" of sales consultants and
recruiters that began in the second half of 2014.
"We are raising our revenue estimates for the fourth quarter
(implied from the high end of our previously announced estimates
for the second half and the third quarter of 2015) to $563 million
to $568 million, an increase of $15 million to $20 million. As a
result of the strength we are seeing in business and the favorable
demand outlook, we are making additional investments in the number
of recruiters and sales consultants. We have added approximately
100 staffing consultants since the end of the second quarter. We
believe that this additional headcount and the improving
contribution from the headcount added during our hiring surge in
the second half of 2014, will better position us to capture the
current market opportunity and improve our growth in 2016."
Dameris concluded, "We believe the secular trend of customers
wanting to share human capital has driven attractive growth for the
entire professional staffing industry. Customers are continuing to
embrace the realization that the best way to "fractionalize"/share
human capital and avoid the legal risks of misclassifying employees
is by working with a staffing firm. As the secular trend of sharing
human capital gains speed, we believe the professional staffing
industry will be the net beneficiary of customers refusing to use
independent contractors and instead, using professional staffing
firms."
Third Quarter 2015 Financial Results
Revenues for the quarter were $572.1 million ($576.6 million on
a constant currency basis), up 29.3 percent year-over-year (30.3
percent on a constant currency basis). Constant currency revenues
and growth rates were calculated using the foreign exchange rates
from the third quarter of 2014. Revenues on a pro forma basis,
which assumes the Acquisitions occurred at the beginning of 2014
were up 13.4 percent year-over-year (14.2 percent on a constant
currency basis).
Revenues from the Acquisitions (which were acquired in the
second quarter of 2015) totaled $75.7 million for the current
quarter. The revenue contribution from Creative Circle was $73.0
million, and the contribution from the Life Sciences business was
$2.7 million. Operating results of Creative Circle are included in
the Apex Segment. The Life Sciences European business is included
in the Oxford Segment.
Revenues, excluding the contribution from the Acquisitions, were
$496.4 million ($500.3 million on a constant currency basis), up
12.2 percent year-over-year (13.1 percent, on a constant currency
basis).
Direct hire and conversion revenues were $32.7 million, up 45.8
percent year-over-year, which included $5.4 million from Creative
Circle. CyberCoders accounted for 63.0 percent of the total and was
up 19.6 percent year-over-year. Direct hire and conversion revenues
were 5.7 percent of total revenues for the quarter, up from 5.1
percent in the third quarter of 2014.
Our largest segment, Apex, accounted for 73.6 percent of total
revenues. Apex grew 37.6 percent year-over-year, and 15.2 percent
on a pro forma basis. Excluding the revenue contribution of $73.0
million from Creative Circle, the Apex Segment grew 13.7 percent
year-over-year.
Our Oxford Segment accounted for 26.4 percent of total revenues.
Oxford grew 10.7 percent year-over-year, and 8.6 percent on a pro
forma basis (11.8 percent on constant currency basis). Excluding
the revenue contribution of $2.7 million from an acquired business,
the Oxford Segment grew 8.7 percent (11.6 percent on a constant
currency basis).
Gross profit was $191.4 million, up $46.6 million or 32.2
percent year-over-year. Gross margin for the quarter was 33.5
percent.
Selling, general and administrative (“SG&A”) expenses were
$128.6 million (22.5 percent of revenues), up from $100.6 million
(22.7 percent of revenues) in the third quarter of 2014. SG&A
expenses for the quarter included SG&A expense of $15.0 million
from Creative Circle, and acquisition, integration and strategic
planning expenses of $1.7 million.
Amortization of intangible assets was $11.3 million, compared
with $5.5 million in the third quarter of 2014. The increase in
amortization is mainly related to the acquisition of Creative
Circle.
Interest expense for the quarter was $9.5 million compared with
$3.1 million in the third quarter of 2014. Interest expense for the
quarter was comprised of (i) interest on the credit facility of
$7.9 million, (ii) amortization of deferred loan costs of $0.9
million, and (iii) accretion of $0.7 million on the contingent
consideration liability related to acquisitions.
Adjusted income from continuing operations (a non-GAAP measure
as calculated in an accompanying table) was $43.8 million ($0.82
per diluted share). Net income on a GAAP basis was $24.9 million
($0.47 per diluted share).
Adjusted EBITDA (a non-GAAP measure defined below) was $74.9
million, or 13.1 percent of revenues. The Adjusted EBITDA
contribution from Creative Circle was $16.6 million.
Cash flows from operating activities were $35.3 million and free
cash flow was $30.4 million. During the quarter, we repaid $46.0
million of long-term debt and at September 30, 2015, our leverage
ratio (total indebtedness to trailing 12 months Adjusted EBITDA)
was 3.21 to 1, down from 3.51 to 1 at June 30, 2015.
Financial Estimates for Q4 2015
On Assignment is providing financial estimates for the fourth
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.
These estimates also assume no deterioration in foreign exchange
rates.
- Revenues of $563.0 million to $568.0
million
- Gross margin of 32.8 percent to 33.2
percent
- SG&A expense (excludes amortization
of intangible assets) of $128.3 to $129.3 million (includes $4.7
million in depreciation and $5.6 million in equity-based
compensation expense)
- Amortization of intangible assets of
$11.3 million
- Adjusted EBITDA of $66.7 million to
$69.6 million
- Effective tax rate of 40.8 percent
- Adjusted income from continuing
operations of $38.4 million to $40.1 million
- Adjusted income from continuing
operations per diluted share of $0.72 to $0.75
- Income from continuing operations of
$21.2 million to $22.9 million
- Income from continuing operations per
diluted share of $0.40 to $0.43
- Diluted shares outstanding of 53.5
million
These estimates assume year-over-year revenue growth on a
reported basis of approximately 35.0 percent for the Apex Segment
(13.0 percent on a pro forma basis) and approximately 10.8 percent
for the Oxford Segment. The above estimates assume billable days of
60.7 for the quarter, which are 3.1 fewer days than the preceding
quarter. Based on the average revenue per billable day in the third
quarter of 2015, the effect on revenues for the fourth quarter of
fewer billable days than the preceding quarter is approximately $28
million.
Conference Call
On Assignment will hold a conference call today at 4:30 p.m. EDT
to review its third quarter financial results. The dial-in number
is 800-288-8976 (+1-612-332-0634 for callers outside the United
States) and the conference ID number is 370869. Participants should
dial in ten minutes before the call.
A replay of the conference call will be available beginning
Wednesday, October 28, 2015 at 6:30 p.m. EDT and ending at 11:59
p.m. EST on Thursday, November 12, 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 370869.
This call is being webcast by CCBN and can be accessed via
On Assignment's web site at www.onassignment.com. Individual investors can
also listen at CCBN's site at www.fulldisclosure.com or by visiting any of the
investor sites in 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 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 Reports on Form 10-Q for the quarters ended
March 31, 2015 and June 30, 2015 as filed with the SEC on May 8,
2015 and August 7, 2015, respectively, 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 Nine Months Ended September
30, June 30, September 30, 2015
2014 (1)
2015 2015
2014 (1)
Revenues $ 572,123 $ 442,443 $ 485,323 $ 1,487,491 $
1,283,718 Cost of services 380,719 297,605
326,789 1,001,678 868,820
Gross profit 191,404 144,838 158,534 485,813 414,898
Selling, general and administrative expenses 128,614 100,608
118,867 353,416 296,331 Amortization of intangible assets
11,325 5,532 6,957 23,151
16,592 Operating income 51,465 38,698 32,710
109,246 101,975 Interest expense, net (9,543 ) (3,101 ) (4,736 )
(17,346 ) (9,532 ) Write-off of loan costs — —
(3,751 ) (3,751 ) — Income
before income taxes 41,922 35,597 24,223 88,149 92,443 Provision
for income taxes 17,031 14,874
9,888 35,900 38,474 Income from
continuing operations 24,891 20,723 14,335 52,249 53,969 Gain on
sale of discontinued operations, net of tax — — — 25,703 — Income
(loss) from discontinued operations, net of tax 34
1,282 (83 ) 360 2,742
Net income $ 24,925 $ 22,005 $ 14,252 $
78,312 $ 56,711 Basic earnings per common
share: Income from continuing operations $ 0.47 $ 0.39 $ 0.28 $
1.00 $ 1.00 Income (loss) from discontinued operations —
0.02 (0.01 ) 0.50
0.05 $ 0.47 $ 0.41 $ 0.27 $ 1.50
$ 1.05 Diluted earnings per common share: Income from
continuing operations $ 0.47 $ 0.38 $ 0.27 $ 0.99 $ 0.98 Income
from discontinued operations — 0.03
— 0.49 0.05 $ 0.47
$ 0.41 $ 0.27 $ 1.48 $ 1.03
Number of shares and share equivalents used to calculate earnings
per share: Basic 52,654 53,374
51,978 52,053 53,955 Diluted
53,304 54,129 52,633
52,759 54,804
__________
(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 (Unaudited)
(In thousands)
Three Months Ended Nine Months Ended September
30, June 30, September 30, 2015 2014 (1) 2015 2015
2014 (1) Revenues: Apex $ 421,067 $ 306,027 $ 338,704 $
1,054,064 $ 882,328 Oxford 151,056 136,416
146,619 433,427 401,390 $ 572,123 $ 442,443 $ 485,323
$ 1,487,491 $ 1,283,718 Gross profit: Apex $ 128,731 $
87,323 $ 97,652 $ 306,026 $ 247,506 Oxford 62,673
57,515 60,882 179,787 167,392 $ 191,404 $
144,838 $ 158,534 $ 485,813 $ 414,898
__________
(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.
SELECTED CASH FLOW INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended September
30, June 30, September 30, 2015 2014 2015 2015 (1)
2014 Cash provided by operations $ 35,277 $ 42,949 $ 32,477
$ 87,697 $ 67,958 Capital expenditures $ 4,846 $ 4,622 $ 5,331 $
18,177 $ 14,260
SELECTED CONSOLIDATED BALANCE SHEET
DATA (Unaudited)
(In thousands)
September 30, June 30, 2015 2015 Cash and cash
equivalents $ 28,916 $ 41,863 Accounts receivable, net 358,649
330,958 Total current assets 432,104 417,698 Goodwill and
intangible assets, net (2) 1,305,335 1,316,461 Total assets (2)
1,796,800 1,793,848 Total current liabilities (2) 182,149 167,861
Working capital (2) 249,955 249,837 Long-term debt (3) 784,797
830,085 Other long-term liabilities 71,266 70,806 Stockholders’
equity 758,588 725,096
__________
(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, and September 30, 2015.
(2) June 30, 2015 balance reflects purchase accounting
adjustments which are presented retrospectively to the acquisition
date. (3) Long-term debt is net of $19.2 million and $19.9
million unamortized deferred loan costs at September 30, 2015 and
June 30, 2015, respectively.
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 September 30, 2015
2014 (1)
June 30, 2015 Net income $ 24,925 $ 0.47 $ 22,005 $
0.41 $ 14,252 $ 0.27 Income (loss) from discontinued
operations, net of tax 34 — 1,282 0.03
(83 ) — Income from continuing operations 24,891 0.47
20,723 0.38 14,335 0.27 Interest expense, net 9,543 0.18 3,101 0.07
4,736 0.09 Write-off of loan costs — — — — 3,751 0.07 Provision for
income taxes 17,031 0.32 14,874 0.27 9,888 0.19 Depreciation 4,356
0.08 3,316 0.06 4,191 0.08 Amortization of intangible assets
11,325 0.21 5,532 0.10 6,957
0.13 EBITDA 67,146 1.26 47,546 0.88 43,858 0.83 Equity-based
compensation 6,054 0.12 4,458 0.08 5,236 0.10 Acquisition,
integration and strategic planning expenses 1,714
0.03 940 0.02 6,932 0.13
Adjusted EBITDA $ 74,914 $ 1.41 $ 52,944 $ 0.98 $ 56,026 $
1.06 Weighted average common and common equivalent shares
outstanding (diluted) 53,304 54,129 52,633
Nine Months Ended September 30, 2015
2014 (1)
Net income $ 78,312 $ 1.48 $ 56,711 $ 1.03 Income
from discontinued operations, net of tax 26,063 0.49
2,742 0.05 Income from continuing operations 52,249
0.99 53,969 0.98 Interest expense, net 17,346 0.33 9,532 0.19
Write-off of loan costs 3,751 0.07 — — Provision for income taxes
35,900 0.68 38,474 0.70 Depreciation 12,079 0.23 8,886 0.16
Amortization of intangible assets 23,151 0.44
16,592 0.30 EBITDA 144,476 2.74 127,453 2.33 Equity-based
compensation 15,244 0.29 11,466 0.21 Acquisition, integration and
strategic planning expenses 9,924 0.19 3,502
0.06 Adjusted EBITDA $ 169,644 $ 3.22 $ 142,421 $ 2.60
Weighted average common and common
equivalent shares outstanding (diluted)
52,759 54,804
__________
(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 September 30, June 30, 2015
2014 (1)
2015 Net income $ 24,925 $ 0.47 $ 22,005 $ 0.41 $
14,252 $ 0.27 Income (loss) from discontinued operations,
net of tax 34 — 1,282 0.02 (83 )
— Income from continuing operations 24,891 0.47 20,723 0.39
14,335 0.27 Write-off of loan costs, net of tax — — — — 2,288 0.04
Acquisition, integration and strategic planning expenses, net of
tax (2) 1,612 0.03 573 0.01
4,578 0.09 Non-GAAP income from continuing operations
$ 26,503 $ 0.50 $ 21,296 $ 0.40 $ 21,201 $ 0.40
Weighted average common and common equivalent shares outstanding
(diluted) 53,304
54,129 52,633
Nine Months Ended September 30, 2015
2014 (1)
Net income $ 78,312 $ 1.48 $ 56,711 $ 1.03 Income
from discontinued operations, net of tax 26,063 0.49
2,742 0.05 Income from continuing operations 52,249
0.99 53,969 0.98 Write-off of loan costs, net of tax 2,288 0.04 — —
Acquisition, integration and strategic planning expenses, net of
tax (2) 6,970 0.14 2,136 0.04 Non-GAAP
income from continuing operations $ 61,507 $ 1.17 $ 56,105 $ 1.02
Weighted average common and common
equivalent shares outstanding (diluted)
52,759
54,804
__________
(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. (2) Included in the three and nine months ended
September 30, 2015 is interest expense of $0.7 million ($0.5
million net of tax), for accretion of discount, reflected in our
contingent consideration liability that is associated with our
acquisitions.
CALCULATION OF ADJUSTED EARNINGS PER
DILUTED SHARE (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Nine Months Ended September
30, 2015
2014 (5)
2015
2014 (5)
Non-GAAP income from continuing operations (1) $ 26,503 $
21,296 $ 61,507 $ 56,105 Adjustments: Amortization of intangible
assets (2) 11,325 5,532 23,151 16,592 Cash tax savings on
indefinite-lived intangible assets (3) 6,593 3,808 15,266 11,422
Income taxes on amortization for financial reporting purposes not
deductible for income tax purposes (4) (621 ) (531 )
(1,733 ) (1,593 ) Adjusted income from continuing
operations $ 43,800 $ 30,105 $ 98,191 $ 82,526
Adjusted income from continuing operations per
diluted share $ 0.82 $ 0.56 $ 1.86 $ 1.51
Weighted average common and common equivalent shares
outstanding (diluted) 53,304 54,129
52,759 54,804
__________
(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 (Unaudited)
Apex Oxford
Consolidated 1
Revenues (in thousands): Q3 2015 $ 421,067 $ 151,056 $ 572,123 Q2
2015 $ 338,704 $ 146,619 $ 485,323 % Sequential change 24.3 % 3.0 %
17.9 % Q3 2014 $ 306,027 $ 136,416 $ 442,443 % Year-over-year
change 37.6 % 10.7 % 29.3 % Direct hire and conversion
revenues (in thousands): Q3 2015 $ 10,574 $ 22,166 $ 32,740 Q2 2015
$ 6,285 $ 22,446 $ 28,731 Q3 2014 $ 3,930 $ 18,523 $ 22,453
Gross margins: Q3 2015 30.6 % 41.5 % 33.5 % Q2 2015 28.8 % 41.5 %
32.7 % Q3 2014 28.5 % 42.2 % 32.7 % Average number of
staffing consultants: 2 Q3 2015 1,266 966 2,232 Q2 2015 1,067 935
2,002 Q3 2014 875 845 1,720 Average number of customers: 3
Q3 2015 3,207 1,114 4,321 Q2 2015 1,766 1,092 2,858 Q3 2014 1,475
1,013 2,488 Top 10 customers as a percentage of revenue: Q3
2015 22.7 % 8.7 % 16.7 % Q2 2015 25.2 % 11.2 % 17.6 % Q3 2014 29.8
% 13.3 % 20.6 % Average bill rate: Q3 2015 $ 55.51 $ 99.33 $
61.64 Q2 2015 $ 54.99 $ 101.01 $ 62.54 Q3 2014 $ 54.65 $ 102.33 $
62.56 Gross profit per staffing consultant: Q3 2015 $
102,000 $ 65,000 $ 86,000 Q2 2015 $ 92,000 $ 65,000 $ 79,000 Q3
2014 $ 100,000 $ 68,000 $ 84,000
__________
(1) Prior year amounts have been restated to exclude
discontinued operations. (2) Excluding Creative Circle, the average
number of staffing consultants for the Apex Segment is 1,073 for
the third quarter of 2015 and 1,007 for the second quarter of 2015.
(3) Excluding Creative Circle, the average number of customers for
the Apex Segment is 1,375 for the third quarter of 2015 and 1,359
for the second quarter of 2015.
SUPPLEMENTAL FINANCIAL INFORMATION –
KEY METRICS (Unaudited)
Three Months Ended September 30, 2015 June 30,
2015 Percentage of revenues: Top ten clients 16.7% 17.6% Direct
hire/conversion 5.7% 5.9% Bill rate: % Sequential change
(1.4%) 0.8% % Year-over-year change (1.5%) —% Bill/Pay
spread: % Sequential change 0.5% 1.2% % Year-over-year change
(1.0%) (3.8%) Average headcount: Contract professionals (CP)
16,633 15,506 Staffing consultants (SC) 2,232 2,002
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version on businesswire.com: http://www.businesswire.com/news/home/20151028006684/en/
On Assignment, Inc.Ed PierceChief Financial Officer(818)
878-7900
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