On Assignment, Inc. Announces Estimated Effect of New U.S. Tax Law on its Previously-Announced Financial Estimates for Fourth...
January 05 2018 - 4:38PM
Business Wire
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, announced today that
it expects to record in the fourth quarter of 2017 a one-time,
non-cash income tax benefit of $30.5 million to $33.5 million
($0.58 to $0.64 per diluted share) as a result of the recently
enacted Tax Cuts and Jobs Act (TCJA). The income tax benefit is
mainly the result of the revaluation of our net deferred income tax
liabilities and an estimate of the transitional tax on deemed
repatriated foreign earnings.
As a result of this one-time income tax benefit, our financial
estimates for net income and Adjusted Net Income (a non-GAAP
measure) and related per share amounts have been updated for the
fourth quarter of 2017. Our net income estimate is now $61.4 to
$66.2 million (compared with our previously-announced estimate of
$30.9 million to $32.7 million), and our earnings per diluted share
estimate is now $1.17 to $1.26 (compared with our
previously-announced estimate of $0.59 to $0.62). Our Adjusted Net
Income (a non-GAAP measure) estimate is now $69.4 million to $74.1
million (compared with our previously-announced estimate of $38.9
million to $40.6 million), and our Adjusted Net Income per diluted
share estimate is now $1.32 to $1.41 (compared with our
previously-announced estimate of $0.74 to $0.77). There are no
other changes to our fourth quarter financial estimates.
While the Company expects subsequent regulations and
interpretations associated with the TCJA to be released that will
provide additional guidance on application of the law, the Company
currently estimates its effective tax rate for 2018 will range
between 25.5 percent and 27.5 percent.
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 www.onassignment.com.
Reasons for Presentation of Non-GAAP Financial
Measures
Statements in this release 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. Our press release on October 25, 2017 includes a
reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure. Below is a discussion
of our non-GAAP financial measures referenced in this release.
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.
Safe Harbor
Certain of the above 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 are
not guarantees of future performance, and actual results might
differ materially. In particular, the Company makes no assurances
that the estimates 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 clients, the availability of qualified
contract professionals, management of our growth, continued
performance and improvement of our enterprise-wide information
systems, our ability to manage our litigation matters, the
successful integration of our 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, 2016. We specifically disclaim any
intention or duty to update any forward-looking statements
contained in this news release.
Forward-looking statements include statements regarding the
estimated effects of tax legislation on the Company’s earnings for
the three months ended December 31, 2017 and on its 2018 effective
tax rate. These forward-looking statements consist of preliminary
estimates, are based on currently available information, as well as
our current interpretations, assumptions and expectations relating
to tax legislation, and are subject to change, possibly materially,
as the Company completes its year-end financial statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20180105005807/en/
On Assignment, Inc.Ed PierceChief Financial Officer(818)
878-7900
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