Revenues for Fourth Quarter exceeded our
Estimates
On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, today reported results
for the quarter ended December 31, 2016.
Fourth Quarter Highlights
- Revenues as reported were $620.9
million, up 7.5 percent year-over-year.
- On a same "Billable Day" basis (a
non-GAAP measure), revenues were up 9.8 percent year-over-year.
Same "Billable Day" for the quarter was calculated by adjusting the
current period revenues for the year-over-year difference in
Billable Days (Q4 of 2015 had 1.3 more Billable Days than the
current quarter).
- Net income was $24.0 million ($0.45 per
diluted share), up from $19.3 million ($0.36 per diluted share) in
the fourth quarter of 2015.
- Adjusted EBITDA (a non-GAAP measure)
was $70.7 million (11.4 percent of revenues), down from $77.8
million (12.4 percent of revenues) in Q3 of 2016.
- Operating results included expenses of
$9.3 million that were not included in our financial estimates.
These expenses were comprised of: (i) out-of-period adjustments of
$5.6 million for an under accrual of costs of services, (ii)
expense of $1.7 million related to the retirement of the president
of Oxford, (iii) $1.6 million in integration expenses and (iv) a
$0.4 million foreign exchange rate charge on an intercompany loan.
Excluding these expenses, Net Income would have been $5.6 million
higher ($0.10 per diluted share) and Adjusted EBITDA would have
been $6.7 million higher.
- Cash flows from operating activities
were $55.9 million, up from $30.2 million in the fourth quarter of
2015. For the full year 2016, cash flows from operating activities
were $196.3 million, up from $117.5 million for the full year
2015.
- Repurchased 525,642 shares at an
average per share price of $39.04 during the quarter. Through
February 13, 2017, repurchased 1,362,384 shares at an average
per share price of $39.07 under our $150 million repurchase
authorization.
- Leverage ratio (a non-GAAP measure) was
2.32 to 1 at December 31, 2016, down from 2.38 to 1 at September
30, 2016.
Commenting on the results, Peter Dameris, Chief Executive
Officer of On Assignment, Inc., said, "The fourth quarter and full
year 2016 were once again record periods of financial performance
for our company. Throughout 2016, we continued to grow above
published industry growth rates and established many new and
meaningful customer relationships."
Dameris continued, "Throughout the year, we continued to
experience greater rates of adoption of our development/deployment
model (i.e. staff augmentation). There are currently many secular
and political drivers that are causing our customers to want to
execute their IT needs with domestic, shared resources. We strongly
believe that these drivers for adoption of IT staff augmentation
will permit us and our industry to grow at attractive rates into
the future."
Fourth Quarter 2016 Financial Results
Revenues for the quarter were $620.9 million, up 7.5 percent
year-over-year. Our largest segment, Apex, accounted for 76.7
percent of total revenues and grew 9.6 percent year-over-year. Our
Oxford Segment accounted for 23.3 percent of total revenues and
grew 1.3 percent year-over-year.
Gross profit was $198.2 million, up $5.3 million or 2.7 percent
year-over-year. Gross margin for the quarter was 31.9 percent.
Gross profit included out-of-period adjustments of $5.6 million for
under accrued costs of services. Excluding these adjustments, gross
profit would have been $203.8 million and the gross margin would
have been 32.8 percent.
Selling, general and administrative (“SG&A”) expenses were
$142.6 million (23.0 percent of revenues), compared with $138.8
million (24.0 percent of revenues) in the fourth quarter of 2015.
The increase in SG&A was in line with the year-over-year growth
of the business over the last four quarters.
SG&A for the quarter included expenses of $3.7 million ($2.3
million after tax, or $0.04 per diluted share) that were not
included in our financial estimates. These expenses were comprised
of: (i) integration expenses of $1.6 million primarily related to
the integration of certain operating units onto Oxford's front and
back office systems, (ii) expense of $1.7 million (includes $1.0
million in stock based compensation) related to the retirement of
the president of Oxford and (iii) foreign exchange loss of $0.4
million on an intercompany loan.
Amortization of intangible assets was $9.7 million, compared
with $11.3 million in the fourth 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 $7.0 million compared with
$9.1 million in the fourth quarter of 2015. Interest expense for
the quarter was comprised of $6.0 million of interest on the credit
facility and $1.0 million of amortization of deferred loan
costs.
Net income was $24.0 million ($0.45 per diluted share), compared
with $19.3 million ($0.36 per diluted share) in the fourth quarter
of 2015. Net Income for the quarter included the after tax effects
of (i) the out-of-period adjustments of $5.6 million and (ii)
SG&A expense of $3.7 million related to items not included in
our financial estimates. On a pre-tax basis, these items totaled
$9.3 million and on an after-tax basis totaled $5.6 million ($0.10
per diluted share).
Adjusted EBITDA (a non-GAAP measure) was $70.7 million, or 11.4
percent of revenues, down from $77.8 million (12.4 percent of
revenues) in Q3 of 2016. Adjusted EBITDA was burdened with the
out-of-period adjustments and the cash portion the SG&A expense
discussed above, excluding these expenses Adjusted EBITDA would
have been $6.7 million higher than the as reported amount.
Cash flows from operating activities were $55.9 million and free
cash flow (a non-GAAP measure) was $49.3 million. During the
quarter, we repaid $19.0 million of long-term debt and at December
31, 2016, our leverage ratio (a non-GAAP measure) was 2.32 to 1,
down from 2.38 to 1 at September 30, 2016.
Financial Estimates for Q1 2017
On Assignment is providing financial estimates for the first
quarter of 2017. 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 $614.0 million to $624.0
million
- Gross margin of 31.4 percent to 31.6
percent
- SG&A expense (excludes amortization
of intangible assets) of $142.5 million to $145.0 million (includes
$5.9 million in depreciation and $6.0 million in equity-based
compensation expense)
- Amortization of intangible assets of
$8.6 million
- Effective tax rate of 39.0 percent
- Net income of $21.5 million to $23.4
million
- Earnings per diluted share of $0.41 to
$0.44
- Diluted shares outstanding of 53.0
million
- Adjusted EBITDA (a non-GAAP measure) of
$62.5 million to $65.5 million
- Adjusted Net Income (a non-GAAP
measure)1 of $29.7 million to $31.6 million
- Adjusted Net Income per diluted share1
(a non-GAAP measure) of $0.56 to $0.60
_______________
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.
Consistent with past practice, our financial estimates above are
based on our estimate of “Billable Days” for the quarter, which are
total calendar days for the period, less weekends and holidays
("Business Days") further adjusted for 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
first quarter, we estimate billable days of 63.0, which is 0.3
fewer days than the first quarter of 2016. Adjusting for the fewer
billable days, our estimated year-over-year growth rate for the
first quarter ranges from 6.0 to 7.7 percent.
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 $11.6 million (or approximately 1.9 percent
of revenues) of which approximately $7.4 million relates
to costs of services and the remainder to SG&A expenses.
Conference Call
On Assignment will hold a conference call today at 5:00 p.m. EST
to review its financial results for the fourth quarter. The dial-in
number is 800-230-1766 (+1-612-332-0335 for callers outside the
United States) and the conference ID number is 415970. 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
Tuesday, February 14, 2017 at 7:00 p.m. EST until midnight on
Tuesday, February 28, 2017. The access number for the replay is
800-475-6701 (+1-320-365-3844 outside the United States) and the
conference ID number is 415970.
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. 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, June 30, 2016 and September 30, 2016 as filed with the
SEC on May 9, 2016, August 8, 2016 and November 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 Year Ended December 31, September 30,
December 31, 2016 2015 2016 2016 2015
Revenues $ 620,884 $ 577,517 $ 629,401 $ 2,440,413 $
2,065,008 Costs of services 422,689 384,585 422,281
1,645,230 1,386,263 Gross profit 198,195
192,932 207,120 795,183 678,745
Selling, general and administrative
expenses
142,630 138,754 141,968 565,829 492,170 Amortization of intangible
assets 9,710 11,316 9,742 39,628 34,467
Operating income 45,855 42,862 55,410 189,726 152,108
Interest expense, net (7,049 ) (9,098 ) (8,294 ) (32,327 ) (26,444
) Write-off of loan costs — — — —
(3,751 ) Income before income taxes 38,806 33,764 47,116 157,399
121,913 Provision for income taxes 14,746 14,591
17,341 60,203 50,491 Income from continuing
operations 24,060 19,173 29,775 97,196 71,422 Gain on sale of
discontinued operations, net of tax — — — — 25,703 Income (loss)
from discontinued operations, net of tax (32 ) 165 (7 ) 5
525 Net income $ 24,028 $ 19,338 $
29,768 $ 97,201 $ 97,650 Basic earnings
per common share: Income from continuing operations $ 0.45 $ 0.36 $
0.56 $ 1.83 $ 1.37 Income from discontinued operations —
0.01 — — 0.50 $ 0.45 $ 0.37
$ 0.56 $ 1.83 $ 1.87 Diluted
earnings per common share: Income from continuing operations $ 0.45
$ 0.36 $ 0.55 $ 1.81 $ 1.35 Income from discontinued operations —
— — — 0.49 $ 0.45 $ 0.36
$ 0.55 $ 1.81 $ 1.84 Number of
shares and share equivalents used to calculate earnings per share:
Basic 52,924 52,867 53,275 53,192
52,259 Diluted 53,521 53,590 53,768
53,747 53,005
SEGMENT FINANCIAL INFORMATION
(Unaudited)FOR THE THREE MONTHS AND THE YEARS ENDED DECEMBER 31,
2016 AND 2015(Dollars in millions)
Three Months Ended Year
Ended 2016 2015 2016 2015 As Reported
Pro Forma Revenues by segment: Apex: Assignment $
466.1 $ 423.9 $ 1,791.6 $ 1,461.2 $ 1,563.3 Permanent placement
10.0 10.7 44.9 32.4 41.7 476.1
434.6 1,836.5 1,493.6 1,605.0 Oxford: Assignment 125.9 121.0 520.7
485.8 488.4 Permanent placement 18.9 21.9 83.2
85.6 85.6 144.8 142.9 603.9 571.4 574.0 Consolidated:
Assignment 592.0 544.9 2,312.3 1,947.0 2,051.7 Permanent placement
28.9 32.6 128.1 118.0 127.3 $
620.9 $ 577.5 $ 2,440.4 $ 2,065.0 $
2,179.0 Percentage of total revenues: Apex 76.7 % 75.2 %
75.3 % 72.3 % 73.7 % Oxford 23.3 % 24.8 % 24.7 % 27.7 % 26.3 %
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Assignment 95.3 %
94.3 % 94.7 % 94.3 % 94.2 % Permanent placement 4.7 % 5.7 % 5.3 %
5.7 % 5.8 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Domestic
95.4 % 95.7 % 95.3 % 95.5 % 95.6 % Foreign 4.6 % 4.3 % 4.7 % 4.5 %
4.4 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Gross profit: Apex $
140.4 $ 131.9 $ 548.4 $ 439.6 $ 487.0 Oxford 57.8 61.0
246.8 239.1 240.0 Consolidated $ 198.2
$ 192.9 $ 795.2 $ 678.7 $ 727.0
Gross margin: Apex 29.5 % 30.4 % 29.9 % 29.4 % 30.3 % Oxford 39.9 %
42.7 % 40.9 % 41.9 % 41.8 % Consolidated 31.9 % 33.4 % 32.6 % 32.9
% 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 MONTHS AND THE YEARS ENDED DECEMBER 31,
2016 AND 2015(In thousands)
Three Months Ended Year
Ended 2016 2015 2016 2015 Cash provided
by operating activities $ 55,902 $ 30,196 $ 196,250 $ 117,493
Capital expenditures (6,587 ) (6,512 ) (27,138 ) (24,689 ) Free
cash flow (non-GAAP measure) $ 49,315 $ 23,684 $
169,112 $ 92,804 Cash used in investing
activities $ (6,646 ) $ (6,015 ) $ (21,984 ) $ (461,530 ) Cash
provided by (used in) financing activities $ (38,860 ) $ (28,808 )
$ (170,984 ) $ 337,659
SELECTED CONSOLIDATED BALANCE SHEET
DATAAS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015(In
thousands)
2016 2015 (Unaudited)
Cash and cash equivalents $ 27,044 $ 23,869 Accounts receivable,
net 386,858 354,808 Total current assets 437,524 414,208 Goodwill
and intangible assets, net 1,251,243 1,292,831 Total assets
1,752,667 1,767,307 Total current liabilities 162,499 160,350
Working capital 275,025 253,858 Long-term debt 640,355 755,508
Other long-term liabilities 80,874 66,655 Stockholders’ equity
868,939 784,794
RECONCILIATION OF NET INCOME TO EBITDA
(NON-GAAP MEASURE) ANDADJUSTED EBITDA (NON-GAAP MEASURE)
(Unaudited)FOR THE THREE MONTHS AND THE YEARS ENDED DECEMBER 31,
2016 AND 2015(In thousands)
Three Months Ended Year
Ended 2016 2015 2016 2015 Net income $
24,028 $ 19,338 $ 97,201 $ 97,650
(Income) loss from discontinued
operations, net of tax(1)
32 (165 ) (5 ) (26,228 ) Interest expense, net 7,049 9,098 32,327
26,444 Write-off of loan costs — — — 3,751 Provision for income
taxes 14,746 14,591 60,203 50,491 Depreciation 6,368 4,759 22,621
16,838 Amortization of intangible assets 9,710 11,316
39,628 34,467 EBITDA (non-GAAP measure) 61,933 58,937
251,975 203,413 Equity-based compensation 7,221 6,774 27,024 22,018
Acquisition, integration and strategic
planning expenses
1,571 5,025 6,034 14,949 Adjusted
EBITDA (non-GAAP measure) $ 70,725 $ 70,736 $ 285,033
$ 240,380
Weighted average common and common
equivalent shares outstanding
(diluted)
53,521 53,590 53,747 53,005
(1)
(Income) loss from discontinued
operations, net of tax is excluded from EBITDA and Adjusted EBITDA.
Discontinued operations, net of tax for the year ended December 31,
2015 included the gain on the sale of our Physician Segment.
RECONCILIATION OF NET INCOME TO
NON-GAAP NET INCOME ANDADJUSTED NET INCOME (NON-GAAP
MEASURE) (Unaudited)FOR THE THREE MONTHS AND THE YEARS ENDED
DECEMBER 31, 2016 AND 2015(In thousands, except per share
amounts)
Three Months Ended Year Ended
2016 2015 2016 2015
Net income
$ 24,028 $ 19,338 $ 97,201 $ 97,650
(Income) loss from discontinued
operations, net of tax(1)
32 (165 ) (5 ) (26,228 )
Refinancing costs(2)
— — 889 3,751
Acquisition, integration and strategic
planning expenses
1,571 5,025 6,034 14,949 Accretion of discount on contingent
consideration — 650 863 1,361
Tax effect on adjustments
(614 ) (1,438 ) (3,022 ) (6,566 ) Non-GAAP net income 25,017 23,410
101,960 84,917 Amortization of intangible assets 9,710 11,316
39,628 34,467
Income taxes on amortization for financial
reporting purposes not deductible for income tax purposes
(431 ) (620 ) (2,018 ) (2,353 ) Adjusted Net Income (non-GAAP
measure)(3) $ 34,296 $ 34,106 $ 139,570 $
117,031 Per diluted share: Net income $ 0.45 $ 0.36 $
1.81 $ 1.84 Adjustments 0.19 0.28 0.79 0.37
Adjusted Net Income (non-GAAP measure)(3) $ 0.64 $
0.64 $ 2.60 $ 2.21
Weighted average common and common
equivalent shares outstanding (diluted)
53,521 53,590 53,747 53,005
(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
year ended December 31, 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: Q4 2016 1,453 1,016
2,469 Q3 2016 1,402 1,001 2,403 Q4 2015 1,310 955 2,265
Average number of customers: Q4 2016 3,611 1,088 4,699 Q3 2016
3,530 1,057 4,587 Q4 2015 3,349 1,099 4,448 Average number
of contract professionals: Q4 2016 17,060 2,903 19,963 Q3 2016
16,047 2,913 18,960 Q4 2015 14,691 2,874 17,565 Top 10
customers as a percentage of revenue: Q4 2016 26.3 % 12.9 % 20.5 %
Q3 2016 25.3 % 15.6 % 19.2 % Q4 2015 22.8 % 9.0 % 17.2 %
Average bill rate: Q4 2016 $ 56.57 $ 99.12 $ 62.12 Q3 2016 $ 56.46
$ 101.60 $ 62.45 Q4 2015 $ 54.83 $ 102.10 $ 60.68 Gross
profit per staffing consultant: Q4 2016 $ 97,000 $ 57,000 $ 80,000
Q3 2016 $ 102,000 $ 63,000 $ 86,000 Q4 2015 $ 101,000 $ 64,000 $
85,000
FINANCIAL ESTIMATES FOR Q1
2017RECONCILIATION OF ESTIMATED NET INCOME TO ESTIMATED
NON-GAAP MEASURES(In millions, except per share data)
Low High Net income(1) $ 21.5 $ 23.4
Interest expense, net 6.8 6.8 Provision for income taxes 13.7 14.8
Depreciation 5.9 5.9 Amortization of intangible assets 8.6
8.6 EBITDA (non-GAAP measure) 56.5 59.5 Equity-based
compensation 6.0 6.0 Adjusted EBITDA (non-GAAP
measure) $ 62.5 $ 65.5 Low High Net
income(1) $ 21.5 $ 23.4 Amortization of intangible assets 8.6 8.6
Income taxes on amortization for financial reporting purposes not
deductible for income tax purposes (0.4 ) (0.4 ) Adjusted Net
Income (non-GAAP measure)(2) $ 29.7 $ 31.6 Per
diluted share: Net income $ 0.41 $ 0.44 Adjustments 0.15
0.16 Adjusted Net Income (non-GAAP measure)(2) $ 0.56
$ 0.60 Weighted average common and common equivalent
shares outstanding (diluted) 53.0 53.0
(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/20170214006431/en/
On Assignment, Inc.Ed Pierce, 818-878-7900Chief Financial
Officer
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