On Assignment, Inc. (NYSE: ASGN), a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills including Technology, Life Sciences, Healthcare and Physician, today reported results for the quarter ended September 30, 2012.
Third Quarter 2012 Highlights
- Revenues were $388.3 million and above the high-end of the previously-announced estimates.
- Revenues were up 139.1 percent year-over-year and included Apex Systems (which was acquired on May 15, 2012) for a full quarter. Apex Systems accounted for $202.7 million of total revenues. Revenue growth, excluding Apex Systems, was 14.3 percent year-over-year.
- Adjusted EBITDA (a non-GAAP measurement defined below) was $45.5 million, up 150.2 percent year-over-year.
- Adjusted EBITDA margin (Adjusted EBITDA as a percent of revenues) was 11.7 percent, up from 11.2 percent in the third quarter of 2011 and 11.4 percent in the second quarter of 2012.
- Net Income was $17.4 million ($0.33 per diluted share) compared with $7.8 million ($0.21 per diluted share) in the third quarter of 2011 and $8.5 million ($0.19 per diluted share) in the second quarter of 2012.
- Leverage ratio (total indebtedness to trailing twelve months Adjusted EBITDA) was 2.96 to 1 compared with 3.79 to 1 as of May 15, 2012, the effective date of the acquisition of Apex Systems.
Commenting on the results, Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “I’m very pleased, that despite the macro-economic challenges, we grew our revenues year-over-year approximately 14 percent on both a pro forma basis (including Apex) and for our legacy businesses (which excludes Apex). At the same time, our Adjusted EBITDA (both pro forma and legacy businesses) grew at twice the rate of our revenues. Our results reflected an expansion of our operating and Adjusted EBITDA margins, which did not include any synergy savings from the acquisition of Apex.