On Assignment, Inc. (NYSE: ASGN), a leading global provider of diversified professional staffing solutions, today reported results for the quarter ended June 30, 2014.
Second Quarter Highlights
- Revenues were $468.6 million, up 14.9 percent year-over-year and 8.6 percent on a pro forma basis (pro forma assumes the acquisitions of Whitaker Medical, LLC and CyberCoders Holdings, Inc. in December 2013 occurred at the beginning of 2013).
- Adjusted income from continuing operations (a non-GAAP measure defined below) was $30.6 million ($0.56 per diluted share).
- Income from continuing operations was $20.7 million ($0.38 per diluted share). Income from continuing operations included $2.1 million ($1.3 million net of income taxes, or $0.02 per diluted share) in acquisition, integration and strategic planning expenses, which were not included in our previously announced estimates.
- Adjusted EBITDA (a non-GAAP measure defined below) was $54.4 million.
- Leverage ratio (total indebtedness to trailing twelve months Adjusted EBITDA) was 1.98 to 1 at June 30, 2014, down from 2.2 to 1 at December 31, 2013.
- Board of Directors authorized a $100 million share repurchase program.
Commenting on the results, Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “Overall our operating performance in the second quarter was solid as we grew faster than the market and we exceeded our earnings and Adjusted EBITDA estimates. Our gross and Adjusted EBITDA margins expanded year-over-year on a pro forma basis, as our mix of direct hire revenues increased and our contract margins expanded in each of our business segments.
While we are pleased with our overall performance for the quarter, our revenues were slightly below our estimates. These estimates had assumed higher growth in the number of contract professionals on billing at our Oxford IT division and that Oxford would hit an inflection point during the quarter where the number of contractors on billing would exceed the high-water mark of 1,875 set in the second quarter of 2013. While Oxford did hit this inflection point, it occurred much later in the quarter than expected. Revenue growth at Apex was also slightly lower than expected as a result of lower growth from large accounts, which we believe relates to the normal ebb and flow of these accounts.