Adjusted EPS & Adjusted EBITDA above
Previously Announced Estimates
Board Approves $100 million Share Repurchase
Program
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, today reported results
for the quarter ended June 30, 2014.
Second Quarter Highlights
- Revenues were $468.6 million, up 14.9
percent year-over-year and 8.6 percent on a pro forma basis (pro
forma assumes the acquisitions of Whitaker Medical, LLC and
CyberCoders Holdings, Inc. in December 2013 occurred at the
beginning of 2013).
- Adjusted income from continuing
operations (a non-GAAP measure defined below) was $30.6 million
($0.56 per diluted share).
- Income from continuing operations was
$20.7 million ($0.38 per diluted share). Income from continuing
operations included $2.1 million ($1.3 million net of income taxes,
or $0.02 per diluted share) in acquisition, integration and
strategic planning expenses, which were not included in our
previously announced estimates.
- Adjusted EBITDA (a non-GAAP measure
defined below) was $54.4 million.
- Leverage ratio (total indebtedness to
trailing twelve months Adjusted EBITDA) was 1.98 to 1 at June 30,
2014, down from 2.2 to 1 at December 31, 2013.
- Board of Directors authorized a $100
million share repurchase program.
Commenting on the results, Peter Dameris, President and Chief
Executive Officer of On Assignment, Inc., said, “Overall our
operating performance in the second quarter was solid as we grew
faster than the market and we exceeded our earnings and Adjusted
EBITDA estimates. Our gross and Adjusted EBITDA margins expanded
year-over-year on a pro forma basis, as our mix of direct hire
revenues increased and our contract margins expanded in each of our
business segments.
While we are pleased with our overall performance for the
quarter, our revenues were slightly below our estimates. These
estimates had assumed higher growth in the number of contract
professionals on billing at our Oxford IT division and that Oxford
would hit an inflection point during the quarter where the number
of contractors on billing would exceed the high-water mark of 1,875
set in the second quarter of 2013. While Oxford did hit this
inflection point, it occurred much later in the quarter than
expected. Revenue growth at Apex was also slightly lower than
expected as a result of lower growth from large accounts, which we
believe relates to the normal ebb and flow of these accounts.
Looking forward based on current operating trends, we expect
above market revenue growth for the remainder of the year. We also
expect that our earnings and Adjusted EBITDA for the full year will
be within our previously announced estimates and that our revenues
for the full year will be slightly below our previously announced
estimates.”
Second Quarter 2014 Financial Results
Revenues for the quarter were $468.6 million, up 14.9 percent
year-over-year (8.6 percent on a pro forma basis, which assumes the
acquisitions of Whitaker Medical and CyberCoders, had occurred at
the beginning of 2013). Our largest segment Apex, which accounts
for approximately 64 percent of total revenues, grew 13.5 percent
year-over-year and accounted for approximately 96 percent of the
pro forma revenue growth in the quarter.
Gross profit was $152.7 million, up 25.9 percent year-over-year
(10.7 percent on a pro forma basis). This improvement was primarily
due to growth in revenues (which included the results of the
businesses acquired in December 2013) and expansion in gross
margin. Gross margin for the quarter was 32.6 percent, up from 29.7
percent in the second quarter of 2013 and up from 31.3 percent in
the first quarter of 2014. The year-over-year expansion in gross
margin was mainly attributable to a higher mix of permanent
placement revenues (4.9 percent of revenues for the quarter
compared with 1.5 percent in the second quarter of 2013) and higher
contract margins. The higher mix of permanent placement revenues in
the quarter was attributable to the inclusion of CyberCoders, which
accounted for $16.0 million of the $22.7 million in permanent
placement revenues.
Selling, general and administrative (“SG&A”) expenses were
$107.9 million (23.0 percent of revenues), up from $84.3 million
(20.7 percent of revenues) in the second quarter of 2013 ($96.6
million, or 22.4 percent of revenues all on a pro forma basis).
SG&A expenses for the quarter included acquisition, integration
and strategic planning expenses of $2.1 million, most of which
related to accrued severance for management personnel terminated in
connection with the Company’s realignment and consolidation
initiatives. The increase in our reported SG&A expense margin
was due to the inclusion of CyberCoders, which has higher gross and
expense margins than our other business units.
Amortization of intangible assets was $6.2 million, compared
with $5.3 million in the second quarter of 2013. The increase
related to amortization from the businesses acquired in December
2013.
Interest expense for the quarter was $3.1 million compared with
$4.1 million in the second quarter of 2013. Interest expense for
the quarter was comprised of interest on the credit facility of
$2.8 million and amortization of capitalized loan costs of $0.3
million. The leverage ratio (total indebtedness to trailing twelve
months Adjusted EBITDA) at June 30, 2014 was 1.98 to 1, down from
2.2 to 1 at December 31, 2013.
The effective income tax rate for the quarter was 41.8 percent,
a slight increase from the 41.6 percent for the full year 2013.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
and amortization of intangible assets plus equity-based
compensation expense, impairment charges, acquisition, integration
and strategic planning expenses), was $54.4 million, up from $43.1
million for the second quarter of 2013. Adjusted income from
continuing operations was $30.6 million ($0.56 per diluted share).
Income from continuing operations (which includes acquisition,
integration and strategic planning expenses of $2.1 million, or
$1.3 million net of income taxes) was $20.7 million ($0.38 per
diluted share) compared with $7.2 million ($0.13 per diluted share)
for the second quarter of 2013.
Net income, which is comprised of (i) income from continuing
operations of $20.7 million and (ii) income from discontinued
operations of $0.1 million, totaled $20.8 million ($0.38 per
diluted share) compared with $7.3 million ($0.14 per diluted share)
in the second quarter of 2013. Net income for 2013 included a $9.2
million after-tax charge related to the write-off of capitalized
loan costs following the debt refinancing in May 2013.
Share Repurchase Program
On July 21, 2014, the Board of Directors of the Company approved
a program authorizing the Company to repurchase up to $100 million
of the Company’s common stock. The share repurchase program will be
operated in accordance with the Securities and Exchange
Commission’s safe harbor requirements, and the authorization is in
effect beginning on August 4, 2014 and continues for two years
thereafter.
Financial Estimates for Q3 2014
On Assignment is providing financial estimates for continuing
operations for the third quarter of 2014. These estimates do not
include acquisition, integration, or strategic planning expenses
and assume no deterioration in the staffing markets that On
Assignment serves.
- Revenues of $479.0 million to $483.0
million
- Gross margin of 32.4 percent to 32.6
percent
- SG&A expense (excludes amortization
of intangible assets) of $108.0 to $109.0 million (includes $3.6
million in depreciation and $4.9 million in equity-based
compensation expense)
- Amortization of intangible assets of
$6.2 million
- Adjusted EBITDA of $55.5 million to
$57.0 million
- Effective tax rate of 41.6 percent
- Adjusted income from continuing
operations of $30.7 million to $31.6 million
- Adjusted income from continuing
operations per diluted share of $0.55 to $0.57
- Income from continuing operations of
$22.1 million to $23.0 million
- Income from continuing operations per
diluted share of $0.40 to $0.41
- Diluted shares outstanding of 55.8
million
These estimates assume year-over-year revenue growth on a
reported basis in excess of 10 percent for Apex, high teens for
Oxford (low single digit on a pro forma basis), over 30 percent for
Physician (low single digits on a pro forma basis) and mid-single
digit growth for Life Sciences-Europe. Pro forma growth rates
assume the acquisitions of CyberCoders (included in Oxford segment)
and Whitaker Medical (included in Physician segment) occurred at
the beginning of 2013. For the full year, we expect our earnings
and Adjusted EBITDA to be within our previously announced estimates
and expect revenues to be slightly (approximately 0.3 percent)
below the low-end of our previously announced full year
estimates.
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 800-230-1096 (+1-651-224-7472 for callers outside the United
States) and the conference ID number is 331961. 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 11:30 p.m. EDT on Wednesday, August 13, 2014. The access number
for the replay is 800-475-6701 (+1-320-365-3844 for callers outside
the United States) and the conference ID number 331961.
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. (NYSE: ASGN), is a leading global provider
of in-demand, skilled professionals in the growing technology,
healthcare and life sciences 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 our 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 was founded in 1985 and went public in 1992. The
Company, which is headquartered in Calabasas, California, operates
through a network of branch offices throughout the United States,
Canada, United Kingdom, Netherlands, Ireland and Belgium. To learn
more, visit http://www.onassignment.com.
Reasons for Presentation of Non-GAAP Financial
Measures
Statements in this release and the Supplemental Financial
Information accompanying 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 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 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 2014. 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, including our Annual Report on Form 10-K for the year
ended December 31, 2013, as filed with the SEC on March 3, 2014 and
our Form 10-Q for the quarterly period ended March 31, 2014 as file
with the SEC on May 9, 2014. 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, 2014
2013 (1)
2014 2014
2013 (1)
Revenues $ 468,618 $ 407,864 $ 439,274 $ 907,892 $ 786,908
Cost of services 315,891 286,532
301,686 617,577 555,465 Gross profit
152,727 121,332 137,588 290,315 231,443 Selling, general and
administrative expenses 107,923 84,282 104,134 212,057 166,159
Amortization of intangible assets 6,156 5,275
6,172 12,328 10,654
Operating income 38,648 31,775 27,282 65,930 54,630 Interest
expense, net (3,103 ) (4,081 ) (3,328 ) (6,431 ) (9,177 ) Write-off
of loan costs — (14,958 ) — —
(14,958
)
Income before income taxes 35,545 12,736 23,954 59,499 30,495
Provision for income taxes 14,846 5,493
9,906 24,752 13,036 Income from
continuing operations 20,699 7,243 14,048 34,747 17,459 Gain on
sale of discontinued operations, net of tax — — — — 14,412 Income
(loss) from discontinued operations, net of tax 90
96 (131 ) (41 ) 81 Net income $
20,789 $ 7,339 $ 13,917 $ 34,706 $
31,952 Basic earnings per common share: Income from
continuing operations $ 0.38 $ 0.14 $ 0.26 $ 0.64 $ 0.33 Income
(loss) from discontinued operations — —
— — 0.27 $ 0.38 $ 0.14
$ 0.26 $ 0.64 $ 0.60 Diluted
earnings per common share: Income from continuing operations $ 0.38
$ 0.13 $ 0.26 $ 0.63 $ 0.32 Income (loss) from discontinued
operations — 0.01 (0.01 ) —
0.27 $ 0.38 $ 0.14 $ 0.25
$ 0.63 $ 0.59 Number of shares and share
equivalents used to calculate earnings per share: Basic
54,372 53,378 54,104 54,239
53,213 Diluted 55,173
54,327 54,975 55,098 54,222
______
(1) Amounts differ from the previously reported numbers on our
Form 10-Q for the periods ended June 30, 2013, due to the
retrospective presentation of discontinued operations related to
the sale of our Allied Healthcare division in December 2013.
SUPPLEMENTAL SEGMENT FINANCIAL
INFORMATION(1) (Unaudited)(In thousands)
Three Months Ended Six Months
Ended June 30, March 31, June 30, 2014
2013 (2)
2014 2014
2013 (2)
Revenues: Apex $ 297,893 $ 262,347 $ 278,408 $ 576,301 $ 502,112
Oxford 126,004 109,153 117,500 243,504 211,841 Physician 33,657
26,466 31,791 65,448 52,768 Life Sciences Europe 11,064
9,898 11,575 22,639 20,187 $ 468,618 $
407,864 $ 439,274 $ 907,892 $ 786,908 Gross profit: Apex $
84,677 $ 72,912 $ 75,506 $ 160,183 $ 136,893 Oxford 53,611 37,122
49,026 102,637 71,937 Physician 10,298 7,640 8,838 19,136 15,123
Life Sciences Europe 4,141 3,658 4,218
8,359 7,490 $ 152,727 $ 121,332 $ 137,588 $ 290,315 $
231,443
______
(1) The segments reported above reflect the new segment
realignment resulting from the operational changes that occurred in
the first quarter of 2014. As a result of this realignment, Apex
now includes Lab Support US (that was formerly part of our Life
Sciences Segment), Oxford now includes our Clinical Research
division (that was formerly part of our Life Sciences Segment) and
the European Life Sciences unit (that was formerly part of our Life
Sciences Segment) is now reported as Life Sciences Europe. In
addition, as reported in the fourth quarter of 2013, Oxford also
includes our Health Information Management unit and CyberCoders.
Our quarterly and full year historical segment data for 2012 and
2013 have been restated to conform to this configuration, which are
included in an Appendix to our Analysts’ Day presentation that is
included on our website.
(2) Amounts differ from the previously reported numbers on our
Form 10-Q for the periods ended June 30, 2013, due to the
retrospective presentation of discontinued operations related to
the sale of our Allied Healthcare division in December 2013.
SELECTED CASH FLOW INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Six Months
Ended June 30, March 31, June 30, 2014
2013 2014 2014 2013 Cash provided by (used in)
operations $ 29,330 $ 26,752 $ (4,321 ) $ 25,009 $ 30,327 Capital
expenditures $ 5,618 $ 4,543 $ 4,020 $ 9,638 $ 7,328
SELECTED CONSOLIDATED BALANCE SHEET
DATA (Unaudited)
(In thousands)
June 30, March 31, 2014 2014
Cash and cash equivalents $30,753 $23,394 Accounts receivable, net
295,935 277,553 Goodwill and intangible assets, net 851,055 857,507
Total assets 1,275,579 1,254,404 Current portion of long-term debt
18,250 18,250 Total current liabilities 170,558 157,168 Working
capital 203,115 190,463 Long-term debt 358,500 375,563 Other
long-term liabilities 61,261 61,159 Stockholders’ equity 685,260
660,514
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, 2014
2013 (1)
March 31, 2014 Net income $ 20,789 $ 0.38 $ 7,339
$ 0.14 $ 13,917 $ 0.25 Income (loss)
from discontinued operations, net of tax
90
— 96 0.01 (131 ) (0.01 ) Income
from continuing operations 20,699 0.38 7,243 0.13 14,048 0.26
Interest expense, net 3,103 0.05 4,081 0.08 3,328 0.06 Write-off of
loan costs — — 14,958 0.28 — — Provision for income taxes 14,846
0.27 5,493 0.10 9,906 0.18 Depreciation 3,348 0.06 1,889 0.03 2,787
0.05 Amortization of intangible assets 6,156 0.11
5,275 0.10 6,172 0.11
EBITDA 48,152 0.87 38,939 0.72 36,241 0.66 Equity-based
compensation 4,095 0.08 3,458 0.06 3,190 0.06 Acquisition,
integration and strategic planning expenses 2,145
0.04 656 0.01 775 0.01
Adjusted EBITDA $ 54,392 $ 0.99 $ 43,053 $ 0.79 $ 40,206 $
0.73 Weighted average common and common equivalent
shares outstanding (diluted) 55,173 54,327
54,975 Six Months Ended June 30, 2014
2013 (1)
Net income $ 34,706 $ 0.63 $ 31,952 $
0.59 Income (loss) from discontinued operations, net of tax
(41 ) — 14,493 0.27 Income from continuing
operations 34,747 0.63 17,459 0.32 Interest expense, net 6,431 0.12
9,177 0.16 Write-off of loan costs — — 14,958 0.28 Provision for
income taxes 24,752 0.45 13,036 0.24 Depreciation 6,135 0.11 3,719
0.07 Amortization of intangible assets 12,328
0.22 10,654 0.20 EBITDA 84,393 1.53 69,003 1.27
Equity-based compensation 7,285 0.14 5,980 0.12 Acquisition,
integration and strategic planning expenses 2,920
0.05 1,274 0.02 Adjusted EBITDA $ 94,598
$ 1.72 $ 76,257 $ 1.41 Weighted average common
and common equivalent
shares outstanding (diluted)
55,098 54,222
______
(1) Amounts differ from the previously reported numbers on our
Form 10-Q for the periods ended June 30, 2013, due to the
retrospective presentation of discontinued operations related to
the sale of our Allied Healthcare division in December 2013.
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, 2014
2013 (1)
2014 Net income $ 20,789 $ 0.38 $ 7,339
$ 0.14 $ 13,917 $ 0.25 Income (loss) from
discontinued operations, net of tax 90 — 96
0.01 (131 ) (0.01 ) Income from continuing
operations 20,699 0.38 7,243 0.13 14,048 0.26 Write-off of loan
costs related to refinancing, net of income taxes — — 9,181 0.17 —
— Acquisition, integration and strategic planning expenses, net of
income taxes 1,308 0.02 392 0.01
455 — Non-GAAP income from continuing
operations $ 22,007 $ 0.40 $ 16,816 $ 0.31 $ 14,503 $ 0.26
Weighted average common and common equivalent shares
outstanding (diluted) 55,173
54,327 54,975
Six Months Ended June 30, 2014
2013
Net income $ 34,706 $ 0.63 $ 31,952 $
0.59 Income (loss) from discontinued operations, net of tax
(41 ) — 14,493 0.27 Income from continuing
operations 34,747 0.63 17,459 0.32 Write-off of loan costs related
to refinancing, net of income taxes — — 9,181 0.17 Acquisition,
integration and strategic planning expenses, net of income taxes
1,763 0.03 766 0.02 Non-GAAP
income from continuing operations $ 36,510 $ 0.66 $ 27,406 $
0.51 Weighted average common
and common equivalent
shares outstanding (diluted)
55,098
54,222
_____
(1) Amounts differ from the previously reported numbers on our
Form 10-Q for the periods ended June 30, 2013, due to the
retrospective presentation of discontinued operations related to
the sale of our Allied Healthcare division in December 2013.
CALCULATION OF ADJUSTED EARNINGS PER
DILUTED SHARE (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Six
Months Ended June 30, 2014 2013 2014
2013 Non-GAAP income from continuing operations (1) $ 22,007 $
16,816 $ 36,510 $ 27,406 Adjustments: Amortization of intangible
assets (2) 6,156 5,275 12,328 10,654 Cash tax savings on
indefinite-lived intangible assets (3) 4,025 3,850 8,050 7,700
Excess of capital expenditures over depreciation, net of tax (4)
(1,025 ) (1,050 ) (2,050 ) (2,100 ) Income taxes on amortization
for financial reporting purposes not deductible for income tax
purposes (5) (531 ) — (1,062 ) —
Adjusted income from continuing operations $ 30,632 $
24,891 $ 53,776 $ 43,660 Adjusted earnings per
diluted share from continuing operations $ 0.56 $ 0.46
$ 0.98 $ 0.81 Weighted average common
and common equivalent shares outstanding (diluted) 55,173
54,327 55,098 54,222
______
(1) Non-GAAP income from continuing operations as calculated on
preceding page. Non-GAAP income from continuing operations excludes
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) Excess capital expenditures over depreciation is equal to
one-quarter of the estimated full year difference between capital
expenditures less depreciation, tax affected using an estimated
marginal combined federal and state tax rate of 39 percent.
(5) Income taxes (assuming a 39 percent marginal rate) on the
portion of amortization of intangible assets, which are not
deductible for income tax purposes (mainly amortization associated
with the CyberCoders acquisition that the Company was not able to
step-up the tax basis in those acquired assets for tax
purposes).
SUPPLEMENTAL FINANCIAL AND OPERATING
DATA(1) (Unaudited)
(Dollars in thousands)
Life
Sciences Apex Oxford Physician Europe Consolidated
Revenues: Q2 2014 $ 297,893 $ 126,004 $ 33,657 $ 11,064 $ 468,618
Q1 2014 $ 278,408 $ 117,500 $ 31,791 $ 11,575 $ 439,274 %
Sequential change 7.0 % 7.2 % 5.9 % (4.4 )% 6.7 % Q2 2013 $ 262,347
$ 109,153 $ 26,466 $ 9,898 $ 407,864 % Year-over-year change 13.5 %
15.4 % 27.2 % 11.8 % 14.9 % Direct hire and conversion
revenues: Q2 2014 $ 3,989 $ 17,228 $ 744 $ 775 $ 22,736 Q1 2014 $
3,682 $ 15,027 $ 741 $ 862 $ 20,312 Q2 2013 $ 2,968 $ 1,789 $ 632 $
823 $ 6,212 Gross margins: Q2 2014 28.4 % 42.5 % 30.6 % 37.4
% 32.6 % Q1 2014 27.1 % 41.7 % 27.8 % 36.4 % 31.3 % Q2 2013 27.8 %
34.0 % 28.9 % 37.0 % 29.7 % Average number of staffing
consultants: Q2 2014 835 804 149 50 1,838 Q1 2014 818 796 148 53
1,815 Q2 2013 777 571 100 69 1,517 Average number of
customers: Q2 2014 1,431 864 268 141 2,704 Q1 2014 1,375 849 269
136 2,629 Q2 2013 1,331 770 177 147 2,425 Top 10 customers
as a percentage of revenue: Q2 2014 29.7 % 13.2 % 19.4 % 57.8 %
18.9 % Q1 2014 30.6 % 13.8 % 19.4 % 56.1 % 19.4 % Q2 2013 30.3 %
18.9 % 22.3 % 62.8 % 19.8 % Average bill rate: Q2 2014 $
54.16 $ 112.34 $ 173.67 $ 54.89 $ 65.55 Q1 2014 $ 53.89 $ 110.55 $
173.29 $ 53.66 $ 64.87 Q2 2013 $ 54.26 $ 118.25 $ 183.95 $ 53.57 $
66.54 Gross profit per staffing consultant: Q2 2014 $
101,000 $ 67,000 $ 69,000 $ 83,000 $ 83,000 Q1 2014 $ 92,000 $
62,000 $ 60,000 $ 80,000 $ 76,000 Q2 2013 $ 94,000 $ 65,000 $
77,000 $ 53,000 $ 80,000
_____
(1) The segments reported above reflect the new segment
realignment resulting from the operational changes that occurred in
the first quarter of 2014. As a result of this realignment, Apex
now includes Lab Support US (that was formerly part of our Life
Sciences Segment), Oxford now includes our Clinical Research
division (that was formerly part of our Life Sciences Segment) and
the European Life Sciences unit (that was formerly part of our Life
Sciences Segment) is now reported as Life Sciences Europe. In
addition, as reported in the fourth quarter of 2013, Oxford also
includes our Health Information Management unit and CyberCoders.
Our quarterly and full year historical segment data for 2012 and
2013 have been restated to conform to this configuration, which are
included in an Appendix to our Analysts’ Day presentation that is
included on our website.
SUPPLEMENTAL FINANCIAL INFORMATION – KEY
METRICS (Unaudited)
Three Months Ended
June 30,2014
March 31,2014 Percentage of revenues: Top ten clients
18.9 % 19.4 % Direct hire/conversion 4.9 % 4.6 % Bill rate:
% Sequential change 1.0 % 1.2 % % Year-over-year change (1.5 %)
(1.5 %) Bill/Pay spread: % Sequential change 2.8 % 0.8 % %
Year-over-year change 0.7 % (1.0 %) Average headcount:
Contract professionals (CP) 12,737 12,454 Staffing consultants (SC)
1,838 1,815 Productivity: Gross profit per SC $ 83,000 $
76,000
On Assignment, Inc.Ed Pierce, 818-878-7900Chief Financial
Officer
ASGN (NYSE:ASGN)
Historical Stock Chart
From Aug 2024 to Sep 2024
ASGN (NYSE:ASGN)
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From Sep 2023 to Sep 2024