Revenue Growth of 10 Percent
Gross Profit, Income & Adjusted EBITDA
(a non-GAAP measure) within our Estimates
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, today reported results
for the quarter ended September 30, 2016.
Third Quarter Highlights
- Revenues were $629.4 million, up 10.0
percent over the third quarter of 2015.
- Net income was $29.8 million ($0.55 per
diluted share), up from $24.9 million ($0.47 per diluted share) in
the third quarter of 2015.
- Adjusted EBITDA (a non-GAAP measure)
was $77.8 million (12.4 percent of revenues), up from $74.1 million
(12.2 percent of revenues) in Q2 of 2016.
- Repurchased 510,411 shares at an
average per share price of $37.19 during the quarter. Through
October 26, 2016, repurchased 787,911 shares at an average per
share price of $37.02 under our $150 million repurchase
authorization.
- Leverage ratio (a non-GAAP measure) was
2.38 to 1 at September 30, 2016, down from 2.55 to 1 at June 30,
2016.
- Amended credit facility on August 5,
2016, resulting in a 25 basis point reduction in the interest rate
for the term B loan facility.
Commenting on the results, Peter Dameris, President and Chief
Executive Officer of On Assignment, Inc., said, "Our results for
the quarter were above or in line with our financial estimates for
the quarter. Our revenue growth rate for the quarter was well above
the published estimated growth rate for our industry."
"Over the course of the year, we have created long-term value
for our stakeholders while making the appropriate investments in
our infrastructure to support our growth. During the first nine
months of 2016, we generated approximately $120 million in free
cash flow, reduced our debt leverage ratio to 2.38 to 1 from 3.02
to 1 at year-end 2015 and repurchased approximately 0.6 million
shares of our common stock since instituting a new $150 million
stock repurchase program in June. Going forward, as we have said in
the past, our size, investment and long-term customer relationships
position us well to take advantage of the significant customer
changes occurring in the markets we serve."
Third Quarter 2016 Financial Results
Revenues for the quarter were $629.4 million, up 10.0 percent
year-over-year. Our largest segment, Apex, accounted for 75.2
percent of total revenues and grew 12.0 percent year-over-year. Our
Oxford Segment accounted for 24.8 percent of total revenues and
grew 4.3 percent year-over-year.
Gross profit was $207.1 million, up $15.7 million or 8.2 percent
year-over-year. Gross margin for the quarter was 32.9 percent.
Selling, general and administrative (“SG&A”) expenses were
$142.0 million (22.6 percent of revenues), compared with $128.6
million (22.5 percent of revenues) in the third quarter of 2015.
The increase in SG&A was commensurate with the high
year-over-year growth of the business over the last four
quarters.
SG&A for the quarter included acquisition, integration and
strategic planning expenses of $0.7 million, which mainly related
to the integration of certain operating units onto Oxford's front
and back office systems. Most of the integration should be
completed by the end of the year.
Amortization of intangible assets was $9.7 million, compared
with $11.3 million in the third quarter of 2015. The decrease is
due to the accelerated amortization method for certain acquired
intangibles, which have higher amortization rates at the beginning
of their useful life.
Interest expense for the quarter was $8.3 million compared with
$9.5 million in the third quarter of 2015. Interest expense for the
quarter was comprised of $6.5 million of interest on the credit
facility, $0.9 million of amortization of deferred loan costs and
$0.9 million of costs related to the August 5, 2016 amendment to
our credit facility. This amendment resulted in a 25 basis point
reduction in the interest rate on our term B loan facility.
The effective tax rate for the quarter was 36.8 percent, which
benefited from an R&D tax credit for taxable years 2014 and
2015 (approximately $0.7 million) and the estimated full year
credit for 2016 (approximately $0.4 million). The effective tax
rate for the fourth quarter is estimated to be 39.3 percent, which
does not benefit from the R&D credit pertaining to prior
years.
Net income was $29.8 million ($0.55 per diluted share), up from
$24.9 million ($0.47 per diluted share) in the third quarter of
2015 and $26.0 million ($0.48 per diluted share) in the second
quarter of 2016. Adjusted EBITDA (a non-GAAP measure) was $77.8
million, or 12.4 percent of revenues, up from $74.1 million (12.2
percent of revenues) in Q2 of 2016.
Cash flows from operating activities were $42.7 million and free
cash flow (a non-GAAP measure) was $36.1 million. During the
quarter, we repaid $34.0 million of long-term debt and at September
30, 2016, our leverage ratio (a non-GAAP measure) was 2.38 to 1,
down from 2.55 to 1 at June 30, 2016.
Beginning this quarter, we changed our determination of Adjusted
Net Income, a non-GAAP measure, to (i) remove the “Cash Tax Savings
on Indefinite-lived Intangible Assets” and (ii) instead present the
savings in a footnote to the table that shows our determination of
Adjusted Net Income. These savings total $6.7 million each quarter,
or $0.12 per diluted share, and represent the economic value of the
tax deduction that we receive from the amortization of goodwill and
trademarks. Accordingly, Adjusted Net Income for the quarter was
$40.0 million ($0.74 per diluted share), which was in line with our
financial estimates after adjusting our estimates for the cash tax
savings.
Financial Estimates for Q4 2016
On Assignment is providing financial estimates for the fourth
quarter of 2016. 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 significant change in foreign
exchange rates. Reconciliations of estimated net income to the
estimated non-GAAP measures are presented herein.
- Revenues of $608.0 million to $618.0
million
- Gross margin of 32.6 percent to 32.9
percent
- SG&A expense (excludes amortization
of intangible assets) of $140.1 million to $142.1 million (includes
$6.1 million in depreciation and $6.0 million in equity-based
compensation expense)
- Amortization of intangible assets of
$9.7 million
- Effective tax rate of 39.3 percent
- Net income of $25.4 million to $27.3
million
- Earnings per diluted share of $0.47 to
$0.51
- Diluted shares outstanding of 53.6
million
- Adjusted EBITDA (a non-GAAP measure) of
$70.5 million to $73.5 million
- Adjusted Net Income (a non-GAAP
measure)1 of $34.8 million to $36.7 million
- Adjusted Net Income per diluted share1
(a non-GAAP measure) of $0.65 to $0.69
_______________
1
Does not include the “Cash Tax Savings on
Indefinite-lived Intangible Assets.” These savings total $6.7
million each quarter, or $0.12 per diluted share, and represent the
economic value of the tax deduction that we receive from the
amortization of goodwill and trademarks.
"Business Days" (total calendar days for the period, less
weekends and holidays) for the fourth quarter of 2016 total 61,
which is three fewer days than the preceding quarter and one fewer
day than the fourth quarter of 2015. Each business day is
approximately $10 million in revenues. Adjusted for the difference
in business days, our revenue estimates for the fourth quarter of
2016 imply sequential growth of 1.4 to 3.0 percent and
year-over-year growth of 7.0 to 8.8 percent. Our year-over-year
growth rate for the quarter reflects a more difficult prior year
comparable as the growth rate for fourth quarter of 2015 was 1.0
percentage point higher than the third quarter of 2015 (14.4
percent year-over-year growth in Q4 2015 compared with 13.4 percent
growth in Q3 2015).
Our financial estimates above are based on our estimate of
“Billable Days” for the quarter, which differ from "Business Days."
Besides weekends and holidays, our Billable Days consider other
factors, such as the day of the week a holiday occurs, additional
time taken off around holidays, year-end client furloughs and
inclement weather. For the fourth quarter, we estimate billable
days of 60, which is 3.1 fewer days than the preceding quarter and
1.6 fewer days than the fourth quarter of 2015. Adjusting for the
fewer billable days, our estimated year-over-year growth rate for
the fourth quarter ranges from 8 to 10 percent and the sequential
growth rate ranges from 1.6 to 3.2 percent.
Conference Call
On Assignment will hold a conference call today at 5:00 p.m. EDT
to review its financial results for the third quarter. The dial-in
number is 800-230-1074 (+1-612-234-9959 for callers outside the
United States) and the conference ID number is 404341. Participants
should dial in ten minutes before the call. The prepared remarks
for this call will be available via On Assignment's web site at
www.onassignment.com. This call is
being webcast by CCBN and can be accessed 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.
A replay of the conference call will be available beginning
Thursday, October 27, 2016 at 7:00 p.m. EDT until midnight on
Thursday, November 10, 2016. The access number for the replay is
800-475-6701 (+1-320-365-3844 outside the United States) and the
conference ID number is 404341.
About On Assignment
On Assignment, Inc. is a leading global provider of highly
skilled, hard-to-find 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. 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 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
accounting principles generally accepted in the United States
("GAAP"), and is intended to enhance an overall understanding of
our current financial performance. 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. Below is a
discussion of our non-GAAP measures.
Pro forma revenues and gross profit by segment are presented to
provide a more consistent basis for comparison between quarters.
Pro forma was prepared as if the acquisitions of Creative Circle
and a small Life Sciences business in Europe were consummated at
the beginning of 2014. Although the pro forma segment data are
considered non-GAAP measures, they were calculated in the same
manner as the consolidated pro forma data, which are GAAP
measures.
EBITDA (earnings before interest, taxes, depreciation and
amortization of intangible assets) and Adjusted EBITDA (EBITDA plus
equity-based compensation expense and, as applicable, write-off of
loan costs, acquisition, integration and strategic planning
expenses, and impairment charges) are used to determine a portion
of the compensation for some of our executives and employees.
Equity-based compensation expense is added to arrive at Adjusted
EBITDA because it is a non-cash expense. Write-off of loan costs,
acquisition, integration and strategic planning expenses, and
impairment charges are added, as applicable, to arrive at Adjusted
EBITDA as they are not indicative of the performance of our core
business on an ongoing basis.
Non-GAAP net income (net income, less income (loss) from
discontinued operations, net of tax, plus, as applicable,
refinancing costs, acquisition, integration and strategic planning
expenses, accretion of fair value discount on contingent
consideration, impairment charges, and the tax effect of these
items) provides a method for assessing our operating results in a
manner that is focused on the performance of our core business on
an ongoing basis. Adjusted Net Income (Non-GAAP net income plus
amortization of intangible assets, less income taxes on
amortization for financial reporting purposes not deductible for
income tax purposes) provides a method for assessing our operating
results in a manner that is focused on the performance of our core
business on an ongoing basis, adjusted for some of the cash flows
associated with amortization of intangible assets to more fully
present the performance of our acquisitions.
Free cash flow is defined as net cash provided by (used in)
operating activities, less capital expenditures. Management
believes this provides useful information to investors about the
amount of cash generated by the business that can be used for
strategic opportunities. Our leverage ratio provides information
about our compliance with loan covenants and is calculated in
accordance with our credit agreement, as filed with the Securities
and Exchange Commission ("SEC"), by dividing our total indebtedness
by trailing 12 months Adjusted EBITDA.
Reasons for Presentation of Operating Metrics
Operating metrics are intended to enhance the overall
understanding of our business and our current financial
performance. These operating metrics might not be calculated in the
same manner as, and thus might not be comparable to, similarly
titled metrics reported by other companies. The operating metrics
presented on this release are calculated as follows: average number
of staffing consultants are full time equivalent staffing
consultant headcount in the quarter; average number of contract
professionals and average number of customers are the number of
contract professionals employed each week and the number of
customers served each week, averaged for the quarter, respectively
(average is weighted by total number of hours billed per week); top
10 customers as a percentage of revenue are the 10 largest clients
defined by the revenue generated in the quarter, divided by total
revenues in the quarter; gross profit per staffing consultant is
gross profit for the quarter divided by the average number of
staffing consultants; average bill rate is total assignment revenue
client billings in the quarter divided by total hours billed in the
quarter.
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 2016. 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, amortization,
effective tax rate, net income, diluted shares outstanding,
Adjusted EBITDA, Adjusted Net Income and related per share amounts
(as applicable) 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 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 SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2015, as filed with the SEC on February 29, 2016
and our Quarterly Reports on Form 10-Q for the quarters ended March
31, 2016 and June 30, 2016, as filed with the SEC on May 9, 2016
and August 8, 2016, respectively. 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, 2016
2015 2016 2016 2015 Revenues $
629,401 $ 572,123 $ 608,088 $ 1,819,529 $ 1,487,491 Costs of
services 422,281 380,719 406,002 1,222,541
1,001,678 Gross profit 207,120 191,404 202,086
596,988 485,813 Selling, general and administrative expenses
141,968 128,614 141,350 423,199 353,416 Amortization of intangible
assets 9,742 11,325 10,032 29,918
23,151 Operating income 55,410 51,465 50,704 143,871 109,246
Interest expense, net (8,294 ) (9,543 ) (7,959 ) (25,278 ) (17,346
) Write-off of loan costs — — — —
(3,751 ) Income before income taxes 47,116 41,922 42,745 118,593
88,149 Provision for income taxes 17,341 17,031
16,732 45,457 35,900 Income from continuing
operations 29,775 24,891 26,013 73,136 52,249 Gain on sale of
discontinued operations,
net of tax
— — — — 25,703 Income (loss) from discontinued operations,
net of tax
(7 ) 34 (9 ) 37 360 Net income $ 29,768
$ 24,925 $ 26,004 $ 73,173 $ 78,312
Basic earnings per common share: Income from continuing
operations $ 0.56 $ 0.47 $ 0.49 $ 1.37 $ 1.00 Income (loss) from
discontinued operations — — — — 0.50
$ 0.56 $ 0.47 $ 0.49 $ 1.37 $
1.50 Diluted earnings per common share: Income from
continuing operations $ 0.55 $ 0.47 $ 0.48 $ 1.36 $ 0.99 Income
from discontinued operations — — — —
0.49 $ 0.55 $ 0.47 $ 0.48 $ 1.36
$ 1.48 Number of shares and share equivalents
used to calculate earnings per share:
Basic 53,275 52,654 53,422 53,281
52,053 Diluted 53,768 53,304 53,911
53,787 52,759
SEGMENT FINANCIAL INFORMATION
(Unaudited)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND
2015
(Dollars in millions)
Three Months Ended Nine Months
Ended 2016 2015 2016 2015
Pro Forma Revenues by segment: Apex: Assignment $
462.0 $ 411.8 $ 1,325.5 $ 1,037.4 $ 1,139.4 Permanent placement
11.6 10.8 34.9 21.7 31.0 473.6
422.6 1,360.4 1,059.1 1,170.4 Oxford: Assignment 134.4 127.5 394.8
364.7 367.3 Permanent placement 21.4 22.0 64.3
63.7 63.7 155.8 149.5 459.1 428.4 431.0 Consolidated:
Assignment 596.4 539.3 1,720.3 1,402.1 1,506.7 Permanent placement
33.0 32.8 99.2 85.4 94.7 $ 629.4
$ 572.1 $ 1,819.5 $ 1,487.5 $ 1,601.4
Percentage of total revenues: Apex 75.2 % 73.9 % 74.8 % 71.2
% 73.1 % Oxford 24.8 % 26.1 % 25.2 % 28.8 % 26.9 % 100.0 % 100.0 %
100.0 % 100.0 % 100.0 % Assignment 94.8 % 94.3 % 94.5 % 94.3
% 94.1 % Permanent placement 5.2 % 5.7 % 5.5 % 5.7 % 5.9 % 100.0 %
100.0 % 100.0 % 100.0 % 100.0 % Domestic 95.3 % 95.6 % 95.2
% 95.5 % 95.6 % Foreign 4.7 % 4.4 % 4.8 % 4.5 % 4.4 % 100.0 % 100.0
% 100.0 % 100.0 % 100.0 % Gross profit: Apex $ 143.7 $ 129.3 $
408.0 $ 307.7 $ 355.0 Oxford 63.4 62.1 189.0
178.1 179.1 Consolidated $ 207.1 $ 191.4
$ 597.0 $ 485.8 $ 534.1 Gross margin:
Apex 30.3 % 30.6 % 30.0 % 29.0 % 30.3 % Oxford 40.7 % 41.6 % 41.2 %
41.6 % 41.6 % Consolidated 32.9 % 33.5 % 32.8 % 32.7 % 33.4 %
Note: Pro forma data were prepared as if the acquisitions of
Creative Circle and a small Life Sciences business in Europe were
consummated at the beginning of 2014. Although the pro forma
segment data are considered non-GAAP measures, they were calculated
in the same manner as the consolidated pro forma data, which are
GAAP measures.
SELECTED CASH FLOW INFORMATION
(Unaudited)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND
2015
(In thousands)
Three Months Ended Nine Months
Ended 2016 2015 2016 2015 Cash provided
by operating activities $ 42,702 $ 34,877 $ 140,348 $ 87,297
Capital expenditures (6,642 ) (4,846 ) (20,551 ) (18,177 )
Free cash flow (non-GAAP measure)
$ 36,060 $ 30,031 $ 119,797 $ 69,120
Cash used in investing activities $ (7,079 ) $ (4,246 ) $
(15,338 ) $ (455,515 ) Cash provided by (used in) financing
activities $ (53,656 ) $ (43,775 ) $ (132,124 ) $ 366,467
SELECTED CONSOLIDATED BALANCE SHEET DATA AS OF
SEPTEMBER 30, 2016 AND DECEMBER 31, 2015
(In thousands)
2016 2015
(Unaudited) Cash and cash equivalents $ 16,972 $ 23,869 Accounts
receivable, net 393,843 354,808 Total current assets 434,482
414,208 Goodwill and intangible assets, net 1,263,076 1,292,831
Total assets 1,762,160 1,767,307 Total current liabilities 174,098
160,350 Working capital 260,384 253,858 Long-term debt 658,642
755,508 Other long-term liabilities 68,180 66,655 Stockholders’
equity 861,240 784,794
RECONCILIATION OF NET INCOME TO EBITDA
(NON-GAAP MEASURE)
AND ADJUSTED EBITDA (NON-GAAP
MEASURE) (Unaudited)
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(In thousands)
Three Months Ended Nine Months
Ended 2016 2015 2016 2015 Net income $
29,768 $ 24,925 $ 73,173 $ 78,312
(Income) loss from discontinued
operations, net of tax(1)
7 (34 ) (37 ) (26,063 ) Interest expense, net 8,294 9,543 25,278
17,346 Write-off of loan costs — — — 3,751 Provision for income
taxes 17,341 17,031 45,457 35,900 Depreciation 5,598 4,356 16,253
12,079 Amortization of intangible assets 9,742 11,325
29,918 23,151
EBITDA (non-GAAP measure)
70,750 67,146 190,042 144,476 Equity-based compensation 6,345 6,054
19,803 15,244 Acquisition, integration and strategic planning
expenses
670 1,714 4,463 9,924
Adjusted EBITDA (non-GAAP measure)
$ 77,765 $ 74,914 $ 214,308 $ 169,644
Weighted average common and common
equivalent shares outstanding (diluted)
53,768 53,304 53,787 52,759 (1)
(Income) loss from discontinued operations, net of tax is
excluded from EBITDA and Adjusted EBITDA. Discontinued operations,
net of tax for the nine months ended September 30, 2015 included
the gain on the sale of our Physician Segment.
RECONCILIATION OF NET INCOME TO
NON-GAAP NET INCOME AND
ADJUSTED NET INCOME (NON-GAAP
MEASURE) (Unaudited)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND
2015
(In thousands, except per share
amounts)
Three Months Ended Nine Months
Ended 2016 2015 2016 2015 Net income $
29,768 $ 24,925 $ 73,173 $ 78,312 (Income) loss from discontinued
operations, net of tax(1) 7 (34 ) (37 ) (26,063 ) Refinancing
costs(2) 889 — 889 3,751 Acquisition, integration and strategic
planning expenses 670 1,714 4,463 9,924 Accretion of discount on
contingent consideration — 711 863 711 Tax effect on adjustments
(608 ) (813 ) (2,408 ) (5,128 ) Non-GAAP net income 30,726 26,503
76,943 61,507 Amortization of intangible assets 9,742 11,325 29,918
23,151 Cash tax savings on indefinite-lived intangible assets(3)
Income taxes on amortization for financial reporting purposes not
deductible for income tax purposes (439 ) (621 ) (1,587 ) (1,733 )
Adjusted Net Income (non-GAAP
measure)(3)
$ 40,029 $ 37,207 $ 105,274 $ 82,925
Per diluted share: Net income $ 0.55 $ 0.47 $ 1.36 $ 1.48
Adjustments 0.19 0.23 0.60 0.09
Adjusted Net Income (non-GAAP
measure)(3)
$ 0.74 $ 0.70 $ 1.96 $ 1.57
Weighted average common and common equivalent shares outstanding
(diluted) 53,768 53,304 53,787 52,759
(1) (Income) loss from discontinued operations, net of tax
is excluded from Non-GAAP net income and Adjusted Net Income.
Discontinued operations, net of tax for the nine months ended
September 30, 2015 included the gain on the sale of our Physician
Segment. (2) In August 2016 we amended our credit facility
resulting in a 25 basis points reduction in the interest rate for
the term B loan facility, and we incurred $0.9 million third party
costs related to the debt amendment which are included in interest
expense. In June 2015 we entered into a new credit facility to fund
the Creative Circle acquisition. Our previous facility was
considered extinguished and we wrote off $3.8 million of deferred
loan costs associated with our previous facility. (3)
Does not include the “Cash Tax Savings on
Indefinite-lived Intangible Assets.” These savings total
$6.7 million each quarter, or $0.12 per diluted share, and
represent the economic value of the tax deduction that we receive
from the amortization of goodwill and trademarks.
OPERATING METRICS (Unaudited)
Apex Oxford
Consolidated Average number of staffing consultants: Q3 2016
1,402 1,001 2,403 Q2 2016 1,314 974 2,288 Q3 2015 1,283 949 2,232
Average number of customers:
Q3 2016 3,530 1,057 4,587 Q2 2016 3,446 1,082 4,528 Q3 2015 3,226
1,095 4,321
Average number of contract
professionals:
Q3 2016 16,047 2,913 18,960 Q2 2016 14,907 2,875 17,782 Q3 2015
13,894 2,772 16,666 Top 10 customers as a percentage of
revenue: Q3 2016 25.3 % 15.6 % 19.2 % Q2 2016 23.8 % 11.6 % 18.3 %
Q3 2015 22.6 % 8.8 % 16.7 % Average bill rate: Q3 2016 $
56.46 $ 101.60 $ 62.45 Q2 2016 $ 55.97 $ 103.58 $ 62.45 Q3 2015 $
55.55 $ 102.75 $ 61.84 Gross profit per staffing consultant:
Q3 2016 $ 102,000 $ 63,000 $ 86,000 Q2 2016 $ 105,000 $ 66,000 $
88,000 Q3 2015 $ 101,000 $ 65,000 $ 86,000
FINANCIAL ESTIMATES FOR Q4 2016 RECONCILIATION OF
ESTIMATED NET INCOME TO ESTIMATED NON-GAAP MEASURES
(In millions, except per share data)
Low High Net
income(1) $ 25.4 $ 27.3 Interest expense, net 6.9 6.7 Provision for
income taxes 16.4 17.7 Depreciation 6.1 6.1 Amortization of
intangible assets 9.7 9.7
EBITDA (non-GAAP measure)
64.5 67.5 Equity-based compensation 6.0 6.0
Adjusted EBITDA (non-GAAP measure)
$ 70.5 $ 73.5 Low High Net income(1) $
25.4 $ 27.3 Amortization of intangible assets 9.7 9.7 Income taxes
on amortization for financial reporting purposes not deductible for
income tax purposes (0.3 ) (0.3 )
Adjusted Net Income (non-GAAP
measure)(2)
$ 34.8 $ 36.7 Per diluted share: Net income $
0.47 $ 0.51 Adjustments 0.18 0.18
Adjusted Net Income (non-GAAP
measure)(2)
$ 0.65 $ 0.69 Weighted average common and
common equivalent shares outstanding (diluted) 53.6 53.6
(1) These estimates do not include
acquisition, integration, or strategic planning expenses.
(2)
Does not include the “Cash Tax Savings on
Indefinite-lived Intangible Assets.” These savings total $6.7
million each quarter, or $0.12 per diluted share, and represent the
economic value of the tax deduction that we receive from the
amortization of goodwill and trademarks.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161027006848/en/
On Assignment, Inc.Ed PierceChief Financial Officer(818)
878-7900
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