“As we evaluated the allied healthcare staffing market, it became clear to us that it would be difficult to get this business unit, which is a tremendous asset and performs important and high-quality work, to the scale they need to be at On Assignment,” Dameris said. “We felt that Cross Country, which has a larger share of this market and deeper penetration into acute care facilities, can grow this business and allow it to flourish and would therefore be a better home for its employees and the unit.”
Pro Forma Financial Estimates for Q4 2013
On Assignment is providing pro forma financial estimates from continuing operations for the fourth quarter of 2013. These pro forma financial estimates exclude the operating results of the Allied Unit (which will be treated as discontinued operations) and include the operating results of CyberCoders and Whitaker as if those acquisitions had occurred at the beginning of the fourth quarter. These estimates do not include any acquisition-related costs or strategic planning expenses. Estimated revenues and EBITDA of the Allied Unit for the fourth quarter are approximately $10.9 million and $0.9 million, respectively, which were included in the Company’s previously announced Q4 financial estimates. Estimated revenues and EBITDA of the two acquisitions on a pro forma basis for the fourth quarter are approximately $20.0 million and $4.0 million, respectively.
|(in millions, except per share amounts)||Q4 Financial Estimates||Q4 Financial Estimates|
|Amortization of Intangible Assets||$||5.2||$||5.2||$||6.5||$||6.5|
|Effective Tax Rate||41.5||%||41.5||%||41.5||%||41.5||%|
|Income from Continuing Operations||$||17.2||$||18.3||$||18.3||$||19.5|
|Income per Diluted Share||$||0.31||$||0.33||$||0.33||$||0.36|
|Adjusted Income per Diluted Share||$||0.46||$||0.48||$||0.50||$||0.52|
|Diluted shares outstanding||54.7||54.7||54.7||54.7|
|SG&A Expenses include:|
|Equity-based compensation expense||$||3.9||$||3.9||$||3.9||3.9|
Updated Financial Estimates for Q4 2013The financial estimates below reflect operating results from continuing operations for the fourth quarter. Accordingly, these financial estimates exclude the operating results of the Allied Unit (which will be reported as discontinued operations) and include the operating results of the two acquired businesses from the date of acquisition through the end of the quarter. These estimates do not include any acquisition-related costs or strategic planning expenses. Estimated revenues and EBITDA of the Allied Unit for the fourth quarter are approximately $10.9 million and $0.9 million, respectively, which were included in the previously announced Q4 financial estimates, but are not included in the revised estimates as those results will be reported as discontinued operations. The estimates below include revenues of $4.0 to $6.0 million from the acquisitions and estimated EBITDA of $0.7 million to $1.0 million from the acquisitions, which assume Whitaker’s operating results will be included for the full month of December and CyberCoders for the last 3.5 weeks of December.