On Assignment Reports Results For Second Quarter 2013

On Assignment, Inc. (NYSE: ASGN), a leading global provider of diversified professional staffing solutions, today reported results for the quarter ended June 30, 2013.

Second Quarter Highlights
  • Revenues were $417.9 million, up 15.4 percent year-over-year on a pro forma basis and 7.4 percent sequentially. Pro forma results, as used herein, assume that our acquisition of Apex Systems occurred on January 1, 2012. Pro forma operating results are summarized in a table below.
  • Income from continuing operations, excluding the write-off of loan costs, acquisition-related costs and strategic planning expenses, which were not included in the previously announced estimates (a non-GAAP measure set forth in the table below) was $17.4 million ($0.32 per diluted share), up from $11.0 million ($0.20 per diluted share) in the first quarter of 2013. Adjusted income from continuing operations (a non-GAAP measure set forth in the table below) was $25.5 million ($0.47 per diluted share).
  • Adjusted EBITDA (a non-GAAP measure defined below) was $44.2 million, up from $38.4 million in second quarter of 2012 on a pro forma basis.
  • Percentage of gross profit converted into Adjusted EBITDA was 35.5 percent, up from 34.4 percent in second quarter of 2012 on a pro forma basis.
  • Leverage ratio (total indebtedness to trailing twelve months Adjusted EBITDA) was 2.3 to 1, down from 2.88 to 1 at December 31, 2012.
  • On May 16, we closed on a new $500 million credit facility that expanded our borrowing capacity and flexibility and reduced our interest rates.

Commenting on the results, Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “Our results for the quarter were above our previously announced estimates and driven by strong year-over-year revenue growth and improved operating leverage. Our conversion of gross profit into Adjusted EBITDA was 35.5 percent for the quarter, up from 34.4 in the second quarter of 2012 on a pro forma basis and 30.1 percent in the preceding quarter.

“Our strong revenue growth was mainly driven by our IT businesses, Apex Systems and Oxford, which account for 80 percent of our business. Our IT businesses grew 18.4 percent year-over-year on a pro forma basis and 8.7 percent sequentially. In that sector of the market, we are the second largest provider of staffing services and we continue to grow faster than the overall market reflecting the benefit of our scale and operating models. We also believe we are benefiting from a shift in spending toward IT staffing and away from other IT services delivery models, such as consulting and offshoring, as CIOs continue to focus sharply on project flexibility and accountability and cost control.

“Our non-IT segments, which account for 20 percent of our overall business, grew 4.7 percent year-over-year and 2.2 percent sequentially. While these segments reported modest growth, we have not yet seen the returns on our investments in sales staff and recruiters. We are evaluating various actions in an effort to improve the growth rate and overall performance of these units.”

Dameris continued, “In May, we put in place a new $500 million credit facility. This facility improves our borrowing capacity and flexibility for acquisitions and stock repurchases and results in significant interest savings.”

Second Quarter 2013 Results

Revenues for the quarter were $417.9 million, up 57.2 percent year-over-year and 7.4 percent sequentially. On a pro forma basis assuming the acquisition of Apex Systems had occurred at the beginning of 2012, revenues were up 15.4 percent year-over-year. Virtually all the growth in revenues was from the Information Technology businesses (Apex Systems and Oxford), which grew 18.4 percent year-over-year on a pro forma basis and 8.7 percent sequentially.

Gross profit was $124.6 million, up 47.4 percent year-over-year and up 10.0 percent sequentially. This increase was due to growth in revenues and the inclusion of the operating results of Apex Systems for a full quarter. The year-over-year compression in gross margin was mainly attributable to the inclusion of Apex Systems for a full quarter, which has a lower gross margin than the Company's other business segments, lower permanent placement revenues and higher growth of lower-margin services.

Selling, general and administrative expenses were $86.5 million, up from $84.2 million in the first quarter of 2013. The sequential increase in expense was primarily due to higher incentive compensation related to the sequential growth in gross profit and headcount additions to drive growth.

Amortization of intangible assets was $5.3 million, up from $3.9 million in the second quarter of 2012. This increase related to the timing of the acquisition of Apex Systems, which was acquired in the middle of the second quarter of 2012. Consequently, the second quarter of 2012 included amortization expense for only half the quarter.

Interest expense for the quarter was $4.2 million compared with $4.0 million in the second quarter of 2012. Interest expense was comprised of interest on the credit facility of $3.8 million and amortization of capitalized loan costs of $0.4 million.

Write-off of loan costs totaled $15.0 million ($9.2 million, $0.17 per diluted share, after tax) and related to the refinancing of the credit facility in May. This refinancing was treated as an early extinguishment of debt, which resulted in a full write-off of all capitalized loan costs associated with the old facility. Under the new $500 million credit facility, the interest rate on the term B loan was reduced 150 basis points and the interest rate on the revolver and term A loan was reduced 75 to 125 basis points, depending on the leverage ratio.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets plus equity-based compensation expense, impairment charges, acquisition-related costs and fees and expenses of the outside consulting firm assisting with our strategic planning initiatives), was $44.2 million, up from $38.4 million for the second quarter of 2012 on a pro forma basis. The Adjusted EBITDA margin (Adjusted EBITDA as a percentage of revenues) was 10.6 percent.

Income from continuing operations (excluding the write-off of loan costs, acquisition-related costs and strategic planning expenses) was $17.4 million ($0.32 per diluted share) compared with $12.7 million ($0.24 per diluted share) for the second quarter of 2012 on a pro forma basis.

Net income, which is comprised of income from continuing operations and the loss from discontinued operations, was $7.3 million ($0.14 per diluted share) compared with $7.6 million ($0.16 per diluted share) in the second quarter of 2012. Net income for the quarter included (i) a $15.0 million ($9.2 million, $0.17 per diluted share, after tax) write-off of loan costs, (ii) acquisition-related costs and strategic planning expenses totaling $0.7 million ($0.4 million, or $0.01 per diluted share, after tax) and (iii) a $0.5 million loss from discontinued operations.

Financial Estimates for Q3 2013

On Assignment is providing below financial estimates from continuing operations for the third quarter of 2013. These estimates do not include acquisition-related costs and strategic planning expenses.
  • Revenues of $429 million to $433 million
  • Gross Margin of 29.8 percent to 30.1 percent
  • SG&A (excludes amortization of intangible assets) of $87.5 to $89.0 million (includes $2.3 million in depreciation and $4.2 million in equity-based compensation expense)
  • Amortization of intangible assets of $5.2 million
  • Adjusted EBITDA of $46 million to $48 million
  • Effective tax rate of 42.5 percent
  • Adjusted Income from Continuing Operations of $25.8 million to $27.0 million
  • Adjusted Income from Continuing Operations per diluted share of $0.47 to $0.49
  • Income from Continuing Operations of $17.8 million to $18.9 million
  • Income from Continuing Operations per diluted share of $0.33 to $0.35
  • Diluted shares outstanding of 54.4 million

These estimates reflect normal seasonality in the business. The estimates assume year-over-year revenue growth of approximately high-teens for Apex Systems and Oxford, mid-single digit for Life Sciences, low single-digit for Physician Staffing and Allied Healthcare. The estimates above assume no deterioration in the staffing markets that On Assignment serves. For the full year, the Company expects to trend toward the high-end of the previously-announced full year 2013 targets.

Conference Call

On Assignment will hold a conference call today at 4:30 p.m. EDT to review its second quarter financial results. The dial-in number is 800-260-0702 (+1-612-234-9962 for callers outside the United States) and the conference ID number is 297394. Participants should dial in ten minutes before the call. A replay of the conference call will be available beginning today at 7:30 p.m. EDT and ending at midnight EDT on Saturday, August 24, 2013. The access number for the replay is 800-475-6701 (1+320-365-3844 for callers outside the United States) and the conference ID number 297394.

This call is being webcast by Thomson/CCBN and can be accessed via On Assignment's web site at www.onassignment.com. Individual investors can also listen at Thomson/CCBN's site at www.fulldisclosure.com or by visiting any of the investor sites in Thomson/CCBN's Individual Investor Network.

About On Assignment

On Assignment, Inc. (NYSE: ASGN), is a leading global provider of in-demand, skilled professionals in the growing technology, healthcare and life sciences 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 their 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.

On Assignment was founded in 1985 and went public in 1992. The corporate headquarters are located in Calabasas, California, with a network of 133 branch offices throughout the United States, Canada, United Kingdom, Netherlands, Ireland and Belgium. Additionally, physician placements are made in Australia and New Zealand. To learn more, visit http://www.onassignment.com .

Reasons for Presentation of Non-GAAP Financial Measures

Statements made in this release and the Supplemental Financial Information accompanying this release 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 GAAP, and is intended to enhance an overall understanding of our current financial performance. The Supplemental Financial Information sets forth financial measures reviewed by our management to evaluate our operating performance. Such measures also are used to determine a portion of the compensation for some of our executives and employees. We believe the non-GAAP financial measures provide useful information to management, investors and prospective investors by excluding certain charges and other amounts that we believe are not indicative of our core operating results. These non-GAAP measures are included to provide management, our investors and prospective investors with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between quarters. One of the non-GAAP financial measures presented is EBITDA (earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets), other terms include Adjusted EBITDA (EBITDA plus equity-based compensation expense, impairment charges, write-off of loan fees, acquisition related costs and strategic planning costs) and Non-GAAP Income from Continuing Operations (Income from continuing operations, plus acquisition related expenses, deferred financing fees written-off and strategic planning costs, net of tax) and Adjusted Income from Continuing Operations and related per share amounts. 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 reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

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 in 2013. 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, Adjusted EBITDA, income from continuing operations, adjusted income from continuing operations, earnings per share or earnings per diluted share 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, and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 18, 2013, our report on Form 8-K filed with the SEC on June 13, 2013, and our Form 10-Q for the quarterly period ended March 31, 2013 as filed with the SEC on May 9, 2013. 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 Six Months Ended
June 30,   March 31, June 30,
2013  

2012 (1)
2013 2013  

2012 (1)
 
Revenues $ 417,923 $ 265,863 $ 389,193 $ 807,116 $ 422,623
Cost of services 293,356   181,326   275,919   569,275   285,337  
Gross profit 124,567 84,537 113,274 237,841 137,286
Selling, general and administrative expenses 86,454 65,173 84,161 170,615 107,918
Amortization of intangible assets 5,275   3,884   5,379   10,654   4,518  
Operating income 32,838 15,480 23,734 56,572 24,850
Interest expense, net (4,198 ) (3,957 ) (5,331 ) (9,529 ) (4,658 )
Write-off of loan costs (14,958 ) (813 )     (14,958 ) (813 )  
Income before income taxes 13,682 10,710 18,403 32,085 19,379
Provision for income taxes 5,860   4,633   7,793   13,653   8,255  
Income from continuing operations 7,822 6,077 10,610 18,432 11,124
Gain on sale of discontinued operations, net of tax 14,412 14,412
Income (loss) from discontinued operations, net of tax (483 ) 1,485   (409 ) (892 ) 1,821  
Net income $ 7,339   $ 7,562   $ 24,613   $ 31,952   $ 12,945  
 
Basic earnings per common share:
Income from continuing operations $ 0.15 $ 0.14 $ 0.20 $ 0.35 $ 0.27
Income from discontinued operations (0.01 ) 0.03   0.26   0.25   0.05  
$ 0.14   $ 0.17   $ 0.46   $ 0.60   $ 0.32  
 
Diluted earnings per common share:
Income from continuing operations $ 0.14 $ 0.13 $ 0.20 $ 0.34 $ 0.26
Income from discontinued operations   0.03   0.26   0.25   0.05  
$ 0.14   $ 0.16   $ 0.46   $ 0.59   $ 0.31  
 
Number of shares and share equivalents used to calculate earnings per share:
Basic 53,378   44,852   53,046   53,213   41,060  
Diluted 54,327   45,879   54,036   54,222   42,067  
 
(1) Amounts differ from the previously reported numbers on our Form 10-Q for the period ended June 30, 2012, due to the retrospective adjustment of amortization of the identifiable intangible assets of Apex purchase price allocation, and the retrospective presentation of discontinued operations related to the sale of Nurse Travel during 2013.
 
 
     
 

SUPPLEMENTAL SEGMENT FINANCIAL INFORMATION (Unaudited)

(In thousands)
 
  Three Months Ended Six Months Ended
  June 30,   March 31, June 30,
2013   2012 2013 2013   2012
Revenues:
Technology –
Apex $ 233,446 $ 98,503 $ 212,728 $ 446,174 $ 98,503
Oxford   101,474   88,107   95,262   196,736   166,866
334,920 186,610 307,990 642,910 265,369
 
Life Sciences 41,877 40,509 40,473 82,350 81,860
Physician 26,466 25,039 26,302 52,768 49,128
Healthcare   14,660   13,705   14,428   29,088   26,266
$ 417,923 $ 265,863 $ 389,193 $ 807,116 $ 422,623
 
Gross profit:
Technology –
Apex $ 63,896 $ 26,983 $ 55,619 $ 119,515 $ 26,983
Oxford   34,506   31,646   32,150   66,656   59,016
98,402 58,629 87,769 186,171 85,999
 
Life Sciences 13,838 13,808 13,384 27,222 27,647
Physician 7,640 7,718 7,483 15,123 15,217
Healthcare   4,687   4,382   4,638   9,325   8,423
$ 124,567 $ 84,537 $ 113,274 $ 237,841 $ 137,286
 
 
     
 

SELECTED CASH FLOW INFORMATION (Unaudited)

(In thousands)
 
Three Months Ended Six Months Ended
June 30,   March 31, June 30,
2013   2012 2013 2013   2012
Cash (used in) provided by operations $ 26,752 $ (15,865 ) $ 3,575 $ 30,327 $ (8,892 )
Capital expenditures $ 4,543 $ 5,052 $ 2,785 $ 7,328 $ 7,171
 
 
       

SELECTED CONSOLIDATED BALANCE SHEET DATA (Unaudited)

(In thousands)
 
June 30, March 31,
2013 2013
Cash and cash equivalents $ 14,111 $ 11,774
Accounts receivable, net 266,567 257,196
Goodwill and intangible assets, net 748,744 755,904
Total assets 1,089,033 1,093,436
Current portion of long-term debt 10,250 10,000
Total current liabilities 127,077 128,899
Working capital 174,844 166,461
Long-term debt 359,063 373,588
Other long-term liabilities 28,694 29,166
Stockholders’ equity 574,199 561,783
 
 
   
 

RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS AND EARNINGS PER SHARE TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA PER DILUTED SHARE

(Unaudited)

(In thousands, except per share amounts)
 
Three Months Ended
June 30,  
2013  

2012 (1)
March 31, 2013
Income from continuing operations $ 7,822   $ 0.14 $ 6,077   $ 0.13 $ 10,610   $ 0.20
Interest expense, net 4,198 0.08 3,957 0.10 5,331 0.10
Write-off of loan costs 14,958 0.27 813 0.02
Provision for income taxes 5,860 0.11 4,633 0.10 7,793 0.14
Depreciation 1,914 0.04 1,560 0.03 1,855 0.03
Amortization of intangibles 5,275 0.10   3,884 0.08   5,379 0.10
EBITDA 40,027 0.74 20,924 0.46 30,968 0.57
Equity-based compensation 3,486 0.06 2,287 0.05 2,550 0.05
Acquisition-related costs 251 0.00 6,562 0.14 161 0.00
Strategic planning costs 405 0.01     457 0.01
Adjusted EBITDA $ 44,169 $ 0.81   $ 29,773 $ 0.65   $ 34,136 $ 0.63
 
Weighted average common and common equivalent shares outstanding (diluted) 54,327 45,879 54,036
          Six Months Ended June 30,
2013      

2012 (1)
Income from continuing operations $ 18,432     $ 0.34 $ 11,124     $ 0.26
Interest expense, net 9,529 0.17 4,658 0.11
Write-off of loan costs 14,958 0.28 813 0.02
Provision for income taxes 13,653 0.25 8,255 0.20
Depreciation 3,769 0.07 2,970 0.07
Amortization of intangibles 10,654     0.20   4,518     0.11  
EBITDA 70,995 1.31 32,338 0.77
Equity-based compensation 6,036 0.10 3,459 0.08
Acquisition-related costs 412 0.01 9,054 0.22
Strategic planning costs 862     0.02        
Adjusted EBITDA $ 78,305     $ 1.44   $ 44,851     $ 1.07  
 
Weighted average common

and common equivalent

shares outstanding (diluted)
54,222 42,067
 
 
   
 

RECONCILIATION OF GAAP INCOME AND EPS TO NON-GAAP INCOME AND EPS (Unaudited)

(In thousands, except per share amounts)
 
Three Months Ended
June 30,   March 31,
2013  

2012 (1)
2013
Income from continuing operations $ 7,822   $ 0.14 $ 6,077   $ 0.13 $ 10,610   $ 0.20
Write-off of loan costs related to refinancing, net of income taxes 9,181 0.17 701 0.02
Acquisition-related costs, net of income taxes 143 3,788 0.08 93
Strategic planning expenses, net of income taxes 249 0.01     281
Non-GAAP income from continuing operations $ 17,395 $ 0.32   $ 10,566 $ 0.23   $ 10,984 $ 0.20
 
Weighted average common and common equivalent shares outstanding (diluted) 54,327

 
45,879 54,036

 
 
         
Six Months Ended June 30,
2013

2012 (1)
Income from continuing operations $ 18,432     $ 0.34 $ 11,124     $ 0.26
Write-off of loan costs related to refinancing, net of income taxes 9,181 0.17 701 0.02
Acquisition-related costs, net of income taxes 236 0.00 5,239 0.13
Strategic planning expenses, net of income taxes 530 0.01   0.00  
Non-GAAP income from continuing operations $ 28,379 $ 0.52   $ 17,064 $ 0.41  
 

Weighted average common and common equivalent shares outstanding (diluted)
54,222

 
42,067
 
 
   
 

CALCULATION OF ADJUSTED EARNINGS PER SHARE (Unaudited)
 

(In thousands, except per share amounts)
 
Three Months     Six Months
Ended Ended
June 30, 2013
Non-GAAP income from continuing operations (2) $ 17,395 $ 28,379
Adjustments:
Amortization of intangible assets (3) 5,275 10,654
Cash tax savings on indefinite-lived intangible assets (4) 3,850 7,700
Excess of capital expenditures over depreciation, net of tax (5) (1,050 ) (2,100 )
Income from Continuing Operations - As Adjusted $ 25,470   $ 44,633  
 
Earnings per Diluted Share from Continuing Operations--, As Adjusted $ 0.47   $ 0.82  
 
Weighted average common and common equivalent shares outstanding (diluted) 54,327   54,222  
 
(2)   Non-GAAP income from continuing operations as calculated on preceding page. GAAP income from continuing operations excludes the write-off of loan costs related to refinancing of the credit facility, acquisition-related cost and strategic planning expenses.
 

(3)

Amortization of identifiable intangible assets of acquired businesses.
 

(4)

Cash tax savings on indefinite-lived intangible assets (goodwill and trademarks related to acquisition of Apex Systems, Oxford and HealthCare Partners) that are amortized and deductible in the determination of income taxes, but not amortized for financial reporting purposes. These assets total $593.1 million and are amortized (and deducted) for income tax purposes on a straight-line basis over 15 years. The annual income tax deduction is $39.5 million and the annual after-tax cash savings are approximately $15.4 million, assuming an estimated marginal combined federal and state income tax rate of 39 percent.
 

(5)

Excess capital expenditures over depreciation is equal to one-quarter of the estimated full year difference between capital expenditures (full year estimate of $15.9 million) less depreciation (full year estimate of $9.0 million), tax affected using an estimated marginal combined federal and state tax rate of 39 percent.
 
 
           
 

PRO FORMA OPERATING RESULTS FROM CONTINUING OPERATIONS (Unaudited)

Year Ended December 31, 2012

(In thousands)
 
 
Q1 Q2 Q3 Q4 Full Year
Revenues $ 342,721 $ 362,179 $ 374,512 $ 380,381 $ 1,459,793
Cost of services 240,652   250,583   258,882   264,762   1,014,879
Gross profit 102,069 111,596 115,630 115,619 444,914
SG&A expenses 77,397 77,172 77,009 78,912 310,490
Amortization of intangible assets 6,381   6,349   6,309   6,299   25,338
Operating income $ 18,291   $ 28,075   $ 32,312   $ 30,408   $ 109,086
 
Adjusted EBITDA $ 28,425 $ 38,855 $ 43,532 $ 41,659 $ 152,471
Adjusted EBITDA, excluding write-downs of earnout obligations $ 28,425 $ 38,364 $ 42,532 $ 41,659 $ 150,980
___
 

The above unaudited pro forma results were prepared on the basis that the acquisition of Apex Systems occurred on January 1, 2012. These results differ from the pro forma disclosures included in the Company's recast 2012 financials as reported on Form 8-K filed with the SEC on June 13, 2013, as those pro forma results were prepared on the basis that the acquisition of Apex Systems occurred on January 1, 2011. SG&A expenses, operating income and Adjusted EBITDA included a $0.5 million and $1.0 million benefit in Q2 and Q3, respectively, related to the reduction in the earnout obligation for HealthCare Partners.
           

SUPPLEMENTAL FINANCIAL INFORMATION – REVENUES AND GROSS MARGINS (Unaudited)

(Dollars in thousands)
 
Technology
Apex   Oxford   Total Life Sciences Physician Healthcare Consolidated
Revenues:
Q2 2013 $ 233,446 $ 101,474 $ 334,920 $ 41,877 $ 26,466 $ 14,660 $ 417,923
Q1 2013 $ 212,728 $ 95,262 $ 307,990 $ 40,473 $ 26,302 $ 14,428 $ 389,193
% Sequential change 9.7 % 6.5 % 8.7 % 3.5 % 0.6 % 1.6 % 7.4 %
Q2 2012 $ 98,503 $ 88,107 $ 186,610 $ 40,509 $ 25,039 $ 13,705 $ 265,863
% Year-over-year change 137.0 % 15.2 % 79.5 % 3.4 % 5.7 % 7.0 % 57.2 %
 
Gross margins:
Q2 2013 27.4 % 34.0 % 29.4 % 33.0 % 28.9 % 32.0 % 29.8 %
Q1 2013 26.1 % 33.7 % 28.5 % 33.1 % 28.5 % 32.1 % 29.1 %
Q2 2012 27.4 % 35.9 % 31.4 % 34.1 % 30.8 % 32.0 % 31.8 %
 
Average number of staffing consultants:
Q2 2013 679 540 1,219 182 100 97 1,598
Q1 2013 671 540 1,211 176 107 89 1,583
Q2 2012 633 501 1,134 160 98 81 1,473
 
 
           
Technology
Apex   Oxford   Total Life Sciences Physician Healthcare Consolidated
Average number of customers:
Q2 2013 588 679 1,267 916 177 491 2,851
Q1 2013 600 659 1,259 884 173 479 2,795
Q2 2012 585 648 1,233 914 186 508 2,841
 
Top 10 customers as a percentage of revenue:
Q2 2013 34.1% 20.4% 24.1% 25.1% 22.3% 28.8% 19.3%
Q1 2013 33.5% 16.7% 23.5% 24.8% 21.6% 29.6% 18.6%
Q2 2012 33.3%

(6)
16.4% 23.5% 23.3% 19.8% 24.6% 18.4%

(6)
(6) Top 10 customers as a percentage of revenue for Apex and Consolidated includes pro forma Apex data for the quarter ended June 30, 2012.
 
Average bill rate:
Q2 2013 $ 60.78 $ 123.43 $ 71.23 $ 34.28 $ 183.95 $ 37.14 $ 64.80
Q1 2013 $ 59.62 $ 122.47 $ 69.88 $ 34.94 $ 185.92 $ 38.01 $ 64.21
Q2 2012 $ 59.07 $ 119.51 $ 69.83 $ 35.25 $ 175.11 $ 37.44 $ 64.82
 
Gross profit per staffing consultant:
Q2 2013 $ 94,000 $ 64,000 $ 81,000 $ 76,000 $ 77,000 $ 48,000 $ 78,000
Q1 2013 $ 83,000 $ 60,000 $ 72,000 $ 76,000 $ 70,000 $ 52,000 $ 72,000
Q2 2012 $ 43,000

(7)
$ 63,000 $ 52,000 $ 86,000 $ 79,000 $ 54,000 $ 57,000

(7)
(7) Actual, reported Apex and Consolidated metric reflect six weeks of Apex data. A full quarter would have been $85,000 for Apex and $76,000 for Consolidated.
 
 
     
 

SUPPLEMENTAL FINANCIAL INFORMATION – KEY METRICS (Unaudited)
 
 
Three Months Ended

June 30,2013
   

March 31,2013
Percentage of revenues:
Top ten clients 19.3 % 18.6 %
Direct hire/conversion 1.5 % 1.9 %
 
Bill rate:
% Sequential change 0.9 % 1.2 %
% Year-over-year change % (5.3 %)
 
Bill/Pay spread:
% Sequential change 1.0 % 0.7 %
% Year-over-year change (3.3 %) (13.7 %)
 
Average headcount:
Contract professionals (CP) 11,961 11,583
Staffing consultants (SC) 1,598 1,583
 
Productivity:
Gross profit per SC $ 78,000 $ 72,000
 

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