Revenues, Adjusted EPS & Adjusted EBITDA
above Previously Announced EstimatesPro Forma Revenue Growth
of 14.4 Percent for Q4 and 11.1 Percent for the Full
YearThird Consecutive Quarter Year-over-Year Revenue Growth
Rate Up over Preceding Quarter
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, today reported results
for the quarter ended December 31, 2015.
Fourth Quarter Highlights
- Reported record revenues of $577.5
million; up 30.9 percent year-over-year (31.7 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
14.4 percent year-over-year (15.0 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 $500.1 million, up 13.4 percent
year-over-year (up 14.0 percent, on a constant currency
basis).
- Adjusted EBITDA (a non-GAAP measure
defined below) was $70.7 million, or 12.2 percent of revenues.
- Adjusted income from continuing
operations (a non-GAAP measure defined below) was $40.6 million
($0.76 per diluted share).
- Leverage ratio (total indebtedness to
trailing 12 months Adjusted EBITDA) was 3.02 to 1 at December 31,
2015, down from 3.21 to 1 at September 30, 2015.
Commenting on the results, Peter Dameris, President and Chief
Executive Officer of On Assignment, Inc., said, "We are very
pleased with our financial results for Q4 in which we exceeded our
financial targets for revenues, Adjusted EBITDA and Adjusted EPS.
Our pro forma revenue growth rate for the quarter was 14.4 percent
and represented the third straight quarter our pro forma revenue
growth rate increased over the preceding quarter. This improvement
reflects higher demand from our customers and higher productivity
from our field operations staff. We believe we are entering 2016
with strong momentum which positions us well to continue to report
above-market growth rates."
Fourth Quarter 2015 Financial Results
Revenues for the quarter were $577.5 million ($580.7 million on
a constant currency basis), up 30.9 percent year-over-year (31.7
percent on a constant currency basis). Constant currency revenues
and growth rates were calculated using the foreign exchange rates
from the fourth quarter of 2014. Revenues on a pro forma basis,
which assumes the Acquisitions occurred at the beginning of 2014,
were up 14.4 percent year-over-year (15.0 percent on a constant
currency basis).
Revenues from the Acquisitions (which were acquired in the
second quarter of 2015) totaled $77.4 million for the current
quarter. The revenue contribution from Creative Circle was $74.6
million, and the contribution from the Life Sciences business was
$2.8 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
$500.1 million ($502.9 million on a constant currency basis), up
13.4 percent year-over-year (14.0 percent, on a constant currency
basis).
Direct hire and conversion revenues were $32.6 million, up 61.9
percent year-over-year, which included $5.0 million from Creative
Circle. CyberCoders accounted for 63.2 percent of the total and was
up 37.3 percent year-over-year. Direct hire and conversion revenues
were 5.7 percent of total revenues for the quarter, up from 4.6
percent in the fourth quarter of 2014.
Our largest segment, Apex, accounted for 75.0 percent of total
revenues. Apex grew 40.7 percent year-over-year, and 17.4 percent
on a pro forma basis. Excluding the revenue contribution of $74.6
million from Creative Circle, the Apex Segment grew 16.5 percent
year-over-year.
Our Oxford Segment accounted for 25.0 percent of total revenues.
Oxford grew 8.4 percent year-over-year (10.8 percent on constant
currency basis). Excluding the revenue contribution of $2.8 million
from an acquired business, the Oxford Segment grew 6.3 percent (8.5
percent on a constant currency basis).
Gross profit was $192.9 million, up $50.4 million or 35.4
percent year-over-year. Gross margin for the quarter was 33.4
percent.
Selling, general and administrative (“SG&A”) expenses were
$138.8 million (24.0 percent of revenues), up from $101.2 million
(22.9 percent of revenues) in the fourth quarter of 2014. SG&A
expenses for the quarter included $15.6 million from Creative
Circle and the acquired Life Sciences business in Europe, and
acquisition, integration and strategic planning expenses of $5.0
million.
Amortization of intangible assets was $11.3 million, compared
with $5.5 million in the fourth quarter of 2014. The increase in
amortization is mainly related to the acquisition of Creative
Circle.
Interest expense for the quarter was $9.1 million compared with
$3.2 million in the fourth quarter of 2014. Interest expense for
the quarter was comprised of (i) interest on the credit facility of
$7.5 million, (ii) amortization of deferred loan costs of $0.9
million, and (iii) accretion of discount of $0.7 million on the
contingent consideration liability related to the Acquisitions.
Adjusted income from continuing operations (a non-GAAP measure
as calculated in an accompanying table) was $40.6 million ($0.76
per diluted share). Net income on a GAAP basis was $19.3 million
($0.36 per diluted share).
Adjusted EBITDA (a non-GAAP measure defined below) was $70.7
million, or 12.2 percent of revenues. The Adjusted EBITDA
contribution from Creative Circle was $16.8 million.
During the quarter, we repaid $30.0 million of long-term debt
and at December 31, 2015, our leverage ratio (total indebtedness to
trailing 12 months Adjusted EBITDA) was 3.02 to 1, down from 3.21
to 1 at September 30, 2015.
Financial Estimates for Q1 2016
On Assignment is providing financial estimates for the first
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 deterioration in foreign exchange
rates.
- Revenues of $550.0 million to $555.0
million
- Gross margin of 32.5 percent to 32.9
percent
- SG&A expense (excludes amortization
of intangible assets) of $134.8 to $135.8 million (includes $5.1
million in depreciation and $7.2 million in equity-based
compensation expense)
- Amortization of intangible assets of
$10.1 million
- Adjusted EBITDA of $56.5 million to
$59.0 million
- Effective tax rate of 39.5 percent
- Adjusted income from continuing
operations of $31.6 million to $33.1 million
- Adjusted income from continuing
operations per diluted share of $0.58 to $0.61
- Income from continuing operations of
$15.3 million to $16.8 million
- Income from continuing operations per
diluted share of $0.28 to $0.31
- Diluted shares outstanding of 54.1
million
The above estimates assume billable days of 62.8 for the
quarter. The above estimates also include the effects of the
payroll tax reset, which occurs at the beginning of each year. The
reset results in an estimated sequential increase in payroll taxes
of approximately $8.5 million (or 1.5 percent of revenues) of which
approximately $5.0 million relates to cost of services and the
remainder to SG&A expenses.
Conference Call
On Assignment will hold a conference call today at 4:30 p.m. EST
to review its fourth quarter financial results. The dial-in number
is 800-230-1093 (+1-612-234-9959 for callers outside the United
States) and the conference ID number is 384040. Participants should
dial in ten minutes before the call.
A replay of the conference call will be available beginning
Wednesday, February 17, 2016 at 6:30 p.m. EST and ending at 11:59
p.m. EST on Wednesday, March 2, 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 384040.
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 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, 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, June 30, 2015 and September 30, 2015 as filed with
the SEC on May 8, 2015, August 7, 2015 and November 6, 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 Year Ended December 31,
September 30, December 31, 2015
2014 (1)
2015 2015
2014 (1)
Revenues $ 577,517 $ 441,023 $ 572,123 $ 2,065,008 $
1,724,741 Cost of services 384,585 298,486 380,719
1,386,263 1,167,306 Gross profit 192,932
142,537 191,404 678,745 557,435 Selling, general and administrative
expenses 138,754 101,192 128,614 492,170 397,523 Amortization of
intangible assets 11,316 5,538 11,325 34,467
22,130 Operating income 42,862 35,807 51,465 152,108
137,782 Interest expense, net (9,098 ) (3,198 ) (9,543 ) (26,444 )
(12,730 ) Write-off of loan costs — — — (3,751
) — Income before income taxes 33,764 32,609 41,922 121,913
125,052 Provision for income taxes 14,591 13,083
17,031 50,491 51,557 Income from continuing
operations 19,173 19,526 24,891 71,422 73,495 Gain on sale of
discontinued operations, net of tax — — — 25,703 — Income from
discontinued operations, net of tax 165 947 34
525 3,689 Net income $ 19,338 $ 20,473
$ 24,925 $ 97,650 $ 77,184 Basic
earnings per common share: Income from continuing operations $ 0.36
$ 0.38 $ 0.47 $ 1.37 $ 1.38 Income from discontinued operations
0.01 0.01 — 0.50 0.06 $ 0.37
$ 0.39 $ 0.47 $ 1.87 $ 1.44
Diluted earnings per common share: Income from continuing
operations $ 0.36 $ 0.37 $ 0.47 $ 1.35 $ 1.35 Income from
discontinued operations — 0.02 — 0.49
0.07 $ 0.36 $ 0.39 $ 0.47 $ 1.84
$ 1.42 Number of shares and share equivalents used to
calculate earnings per share: Basic 52,867 51,900
52,654 52,259 53,437 Diluted 53,590
52,679 53,304 53,005 54,294
______
(1) Amounts have been restated to give retroactive effect to the
sale of our Physician Segment on February 1, 2015 which is 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 Year Ended December 31, September
30, December 31, 2015
2014 (1)
2015 2015
2014 (1)
Revenues: Apex $ 432,978 $ 307,724 $ 421,067 $ 1,487,042 $
1,190,052 Oxford 144,539 133,299 151,056
577,966 534,689 $ 577,517 $ 441,023 $
572,123 $ 2,065,008 $ 1,724,741 Gross
profit: Apex $ 131,481 $ 87,816 $ 128,731 $ 437,507 $ 335,322
Oxford 61,451 54,721 62,673 241,238
222,113 $ 192,932 $ 142,537 $ 191,404 $
678,745 $ 557,435
______
(1) Amounts have been restated to give retroactive effect to the
sale of our Physician Segment on February 1, 2015 which is 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").
SELECTED CASH FLOW INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Year Ended December 31, September
30, December 31, 2015 2014 2015
2015 (1)
2014 Cash provided by operations $ 30,196 $ 28,064 $ 35,277
$ 117,493 $ 96,022 Capital expenditures $ 6,512 $ 5,469 $ 4,846 $
24,689 $ 19,729
SELECTED CONSOLIDATED BALANCE SHEET
DATA (Unaudited)
(In thousands)
December 31, September 30, 2015 2015 Cash and cash
equivalents $ 23,869 $ 28,916 Accounts receivable, net 354,808
358,649 Total current assets 414,208 417,350 Goodwill and
intangible assets, net (2) 1,292,831 1,305,249 Total assets (2)
1,767,307 1,781,960 Total current liabilities (2) 160,350 182,323
Working capital (2) 253,858 235,027 Long-term debt (3) 755,508
784,797 Other long-term liabilities 66,655 55,898 Stockholders’
equity 784,794 758,942
____
(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 September 30, 2015
and December 31, 2015.
(2) September 30, 2015 balance reflects purchase accounting
adjustments which are presented retrospectively to the acquisition
date and the change in presentation of deferred tax assets and
deferred tax liabilities as noncurrent.
(3) Long-term debt is net of $18.5 million and $19.2 million
unamortized deferred loan costs at December 31, 2015 and September
30, 2015, respectively.
RECONCILIATION OF GAAP INCOME FROM
CONTINUING OPERATIONS AND EARNINGS PERDILUTED SHARE TO
NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDAPER DILUTED
SHARE (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended December 31, 2015
2014 (1)
September 30, 2015 Net income $ 19,338 $ 0.36 $
20,473 $ 0.39 $ 24,925 $ 0.47 Income
from discontinued operations, net of tax 165 — 947
0.02 34 — Income from continuing operations
19,173 0.36 19,526 0.37 24,891 0.47 Interest expense, net 9,098
0.17 3,198 0.06 9,543 0.18 Provision for income taxes 14,591 0.27
13,083 0.25 17,031 0.32 Depreciation 4,759 0.09 3,379 0.06 4,356
0.08 Amortization of intangible assets 11,316 0.21
5,538 0.11 11,325 0.21 EBITDA 58,937 1.10
44,724 0.85 67,146 1.26 Equity-based compensation 6,774 0.13 4,157
0.08 6,054 0.12 Acquisition, integration and strategic planning
expenses 5,025 0.09 1,762 0.03 1,714
0.03 Adjusted EBITDA $ 70,736 $ 1.32 $ 50,643
$ 0.96 $ 74,914 $ 1.41 Weighted average
common and common equivalent shares outstanding (diluted) 53,590
52,679 53,304 Year Ended December 31,
2015
2014 (1)
Net income $ 97,650 $ 1.84 $ 77,184 $
1.42 Income from discontinued operations, net of tax 26,228
0.49 3,689 0.07 Income from continuing
operations 71,422 1.35 73,495 1.35 Interest expense, net 26,444
0.50 12,730 0.23 Write-off of loan costs 3,751 0.07 — — Provision
for income taxes 50,491 0.95 51,557 0.95 Depreciation 16,838 0.32
12,265 0.23 Amortization of intangible assets 34,467 0.65
22,130 0.41 EBITDA 203,413 3.84 172,177 3.17
Equity-based compensation 22,018 0.42 15,623 0.29 Acquisition,
integration and strategic planning expenses 14,949 0.28
5,264 0.10 Adjusted EBITDA $ 240,380 $
4.54 $ 193,064 $ 3.56 Weighted average
common
and common equivalent
shares outstanding (diluted)
53,005 54,294
______
(1) Amounts have been restated to give retroactive effect to the
sale of our Physician Segment on February 1, 2015 which is 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").
RECONCILIATION OF GAAP INCOME AND
DILUTED EPS TO NON-GAAP INCOME AND DILUTED EPS (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended December 31, September 30, 2015
2014 (1)
2015 Net income $ 19,338 $ 0.36 $ 20,473
$ 0.39 $ 24,925 $ 0.47 Income from
discontinued operations, net of tax 165 — 947
0.02 34 — Income from continuing operations 19,173
0.36 19,526 0.37 24,891 0.47 Acquisition, integration and strategic
planning expenses, net of tax 3,771 0.07 1,105 0.02 1,132 0.02
Accretion of fair value discount on contingent consideration (2)
466 0.01 — — 480 0.01 Non-GAAP
income from continuing operations $ 23,410 $ 0.44 $
20,631 $ 0.39 $ 26,503 $ 0.50 Weighted
average common and common equivalent shares outstanding (diluted)
53,590
52,679 53,304
Year Ended December 31, 2015
2014 (1)
Net income $ 97,650 $ 1.84 $ 77,184 $
1.42 Income from discontinued operations, net of tax 26,228
0.49 3,689 0.07 Income from continuing
operations 71,422 1.35 73,495 1.35 Write-off of loan costs, net of
tax 2,288 0.04 — — Acquisition, integration and strategic planning
expenses, net of tax 10,261 0.19 3,479 0.07 Accretion of fair value
discount on contingent consideration (2) 946 0.02 —
— Non-GAAP income from continuing operations $ 84,917
$ 1.60 $ 76,974 $ 1.42 Weighted
average common
and common equivalent
shares outstanding (diluted)
53,005
54,294
_____
(1) Amounts have been restated to give retroactive effect to the
sale of our Physician Segment on February 1, 2015 which is 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").
(2) We have contingent consideration obligations related to our
acquisitions. The fair value of the contingent consideration was
determined using an expected present value technique. The change in
present value due to the passage of time (accretion of fair value
discount) is recorded in interest expense.
CALCULATION OF ADJUSTED EARNINGS PER
DILUTED SHARE (Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Year Ended December 31, December 31, 2015
2014 (5)
2015
2014 (5)
Non-GAAP income from continuing operations (1) $ 23,410 $ 20,631 $
84,917 $ 76,974 Adjustments: Amortization of intangible assets (2)
11,316 5,538 34,467 22,130 Cash tax savings on indefinite-lived
intangible assets (3) 6,529 3,808 21,795 15,230 Income taxes on
amortization for financial reporting purposes not deductible for
income tax purposes (4) (620 ) (532 ) (2,353 ) (2,125 )
Adjusted income from continuing operations $ 40,635 $
29,445 $ 138,826 $ 112,209 Adjusted
income from continuing operations per diluted share $ 0.76 $
0.56 $ 2.62 $ 2.07 Weighted average
common and common equivalent shares outstanding (diluted) 53,590
52,679 53,005 54,294
______
(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. and a Life Science
business in Europe 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.
PROJECTED ADJUSTMENTS TO GAAP NET
INCOME TO CALCULATED ADJUSTED NET INCOME
(Unaudited)
(In thousands)
Year Ending December 31, 2016 2017 2018
2019 2020 Add-backs: Amortization of intangible
assets (1) $ 39,534 $ 32,943 $ 28,893 $ 22,031 $ 14,532 Cash tax
savings on indefinite-lived intangible assets for income tax
purposes (Goodwill & Trademarks) (2) 26,528 26,712 26,712
26,712 26,712 Income taxes on amortization for financial reporting
purposes not deductible for income tax purposes (3) (2,018 ) (1,622
) (1,606 ) (1,439 ) (252 ) Net adjustment to GAAP net income to
calculate adjusted net income $ 64,044 $ 58,033 $
53,999 $ 47,304 $ 40,992
______
The table above shows adjustments to GAAP net income to
calculate Adjusted net income
(1) Amortization of identifiable intangible assets of acquired
businesses. The year-over-year reductions in this add-back will
result in a corresponding increase in operating income for GAAP
purposes.
(2) 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.
(3) 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. and a Life Science
business in Europe that the Company was not able to step-up the tax
basis in those acquired assets for tax purposes).
SUPPLEMENTAL FINANCIAL AND OPERATING
DATA (Unaudited)
Apex Oxford Consolidated 1 Revenues (in thousands): Q4 2015
$ 432,978 $ 144,539 $ 577,517 Q3 2015 $ 421,067 $ 151,056 $ 572,123
% Sequential change 2.8 % (4.3 )% 0.9 % Q4 2014 $ 307,724 $ 133,299
$ 441,023 % Year-over-year change 40.7 % 8.4 % 30.9 % Direct
hire and conversion revenues (in thousands): Q4 2015 $ 10,480 $
22,152 $ 32,632 Q3 2015 $ 10,574 $ 22,166 $ 32,740 Q4 2014 $ 4,146
$ 16,008 $ 20,154 Gross margins: Q4 2015 30.4 % 42.5 % 33.4
% Q3 2015 30.6 % 41.5 % 33.5 % Q4 2014 28.5 % 41.1 % 32.3 %
Average number of staffing consultants: 2 Q4 2015 1,293 972 2,265
Q3 2015 1,266 966 2,232 Q4 2014 942 869 1,811 Average number
of customers: 3 Q4 2015 3,331 1,117 4,448 Q3 2015 3,207 1,114 4,321
Q4 2014 1,276 1,050 2,326 Top 10 customers as a percentage
of revenue: Q4 2015 22.9 % 8.9 % 17.2 % Q3 2015 22.7 % 8.7 % 16.7 %
Q4 2014 29.1 % 12.6 % 20.3 % Average bill rate: Q4 2015 $
54.80 $ 98.19 $ 60.68 Q3 2015 $ 55.51 $ 99.33 $
61.84
Q4 2014 $ 54.59 $ 103.92 $
62.75
Gross profit per staffing consultant: Q4 2015 $ 102,000 $
63,000 $ 85,000 Q3 2015 $ 102,000 $ 65,000 $ 86,000 Q4 2014 $
93,000 $ 63,000 $ 79,000
_______
(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 1,086 for the fourth quarter of
2015 and 1,073 for the third quarter of 2015.
(3) Excluding Creative Circle, the average number of customers
for the Apex Segment is 1,379 for the fourth quarter of 2015 and
1,375 for the third quarter of 2015.
SUPPLEMENTAL FINANCIAL INFORMATION –
KEY METRICS (Unaudited)
Three Months Ended December 31, 2015 September 30,
2015 Percentage of revenues: Top ten clients 17.2% 16.7% Direct
hire/conversion 5.7% 5.7% Bill rate: % Sequential change
(1.9%)
(1.1%)
% Year-over-year change
(3.3%)
(1.1%)
Bill/Pay spread: % Sequential change
(1.6%)
1.0%
% Year-over-year change
(1.7%)
(0.6%)
Average headcount: Contract professionals (CP) 17,612 16,633
Staffing consultants (SC) 2,265 2,232
Note: The above table is shown on a consolidated basis. The
changes in bill rate data are primarily caused by changes in mix of
business within the divisions (such as mix of large versus small
accounts) or a change in the overall mix of business related
to different growth rates of the operating divisions.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160217006574/en/
for On Assignment, Inc.Ed Pierce, 818-878-7900Chief Financial
Officer
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