Jim Brill, Senior Vice President and Chief Financial Officer of On Assignment, Inc., stated, “Our fourth quarter consolidated gross margin of 33.1% was down slightly from 33.6% in the third quarter due to normal seasonal factors and the acquisition of HCP effective August 2011, that has lower assignment gross margin. In the fourth quarter of 2011 gross margin in IT and Engineering was 35.8%, Life Sciences gross margin was 33.3%, Healthcare gross margin was 28.5%, and Physician staffing gross margin was 30.1%.”
Fourth Quarter 2011 Results
For the fourth quarter of 2011, consolidated revenues were $161.8 million, up 33.5% year-over-year and down slightly on a sequential basis as a result of approximately 3 fewer billable days. Net income was $7.5 million or $0.20 per diluted share, compared with net income (before goodwill write-down and the write-off of deferred loan costs) of $2.8 million or $0.08 per diluted share in the fourth quarter of 2010.
The IT and Engineering segment revenues were $71.2 million, up 1.6% from the third quarter of 2011 and 31.4% from the fourth quarter of 2010. Life Sciences segment revenues were $40.9 million, down 2.1% from the third quarter of 2011 and up 32.5% from the fourth quarter of 2010. Healthcare segment revenues, which include Nurse Travel and Allied Healthcare lines of business, were $25.9 million, down 4.3% from the third quarter of 2011 and up 39.8% from the fourth quarter of 2010. Nurse Travel revenues were $13.8 million, which included $2.3 million of revenue generated from supporting a customer that experienced labor disruption during the quarter, compared with revenues of $15.4 million in the third quarter of 2011, which included $3.9 million of revenue generated from supporting a customer that experienced labor disruption during the quarter, and $8.5 million in the fourth quarter of 2010 which included $0.8 million of revenue generated from supporting a customer that experienced labor disruption. Allied Healthcare revenues were $12.2 million, up 3.7% from $11.7 million in the third quarter of 2011 and 20.9% from the fourth quarter of 2010. Physician segment revenues were $23.7 million, up 1.4% from the third quarter of 2011 and 35.4% from the fourth quarter of 2010.
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