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| Record 4th Quarter Revenues up 34% over 2010 Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “We are very pleased that for the second consecutive quarter, all of our operating segments reported strong year-over-year revenue growth, and for the full year each segment reported double-digit revenue growth. Our focus on growing our high margin, highly valued math and science skill practices and leveraging our operating platform has enabled us to grow Adjusted EBITDA 75% year over year, more than twice our revenue growth rate and puts us well ahead of our five-year plan to grow our Company to $1 billion in revenues and $100 million in EBITDA. |
On Assignment Reports Fourth Quarter and Full Year 2011 results Record 4th Quarter Revenues up 34% over 2010 Adjusted EBITDA up 52% vs. 4Q10 and up 75% over full year 2010
On Assignment, Inc. (NASDAQ: ASGN), a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills including Laboratory/Scientific, Healthcare/Nursing, Physicians, Medical Financial, Information Technology and Engineering, today reported results for the quarter and the year ended December 31, 2011. 2011 Financial and Operational Highlights Revenues for the fourth quarter of 2011 were $161.8 million, up 34% year over year. Revenues for the full year 2011 were $597.3 million, up 36% year over year. Gross Margin was 33.1% for the quarter and 33.5% for the full year. Adjusted EBITDA (a non-GAAP measurement defined below) for Q4 2011 was $17.7 million or 10.9% of revenues, compared with $11.6 million or 9.6% of revenues for Q4 2010. Adjusted EBITDA for the full year 2011 was $61.2 million or 10.3% of revenues and $35.0 million or 8.0% of revenues in 2010. Net income for Q4 2011 was $7.5 million or $0.20 per diluted share compared with $2.8 million or $0.08 per diluted share for Q4 2010 (before the effects of goodwill write-down and the write-off of deferred loan costs). Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “We are very pleased that for the second consecutive quarter, all of our operating segments reported strong year-over-year revenue growth, and for the full year each segment reported double-digit revenue growth. Our focus on growing our high margin, highly valued math and science skill practices and leveraging our operating platform has enabled us to grow Adjusted EBITDA 75% year over year, more than twice our revenue growth rate and puts us well ahead of our five-year plan to grow our Company to $1 billion in revenues and $100 million in EBITDA. As we enter into the third year of that 5 year strategic plan, I remain confident that we can continue to create value for our shareholders and employees.” 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. SG&A decreased by $0.6 million from the third quarter, primarily due to $0.6 million realized from the finalization of the earn out provision of an acquisition. During the quarter the Company paid down $1.25 million of borrowings on its credit facility. Capital expenditures were $2.4 million, amortization of intangibles was $0.7 million and depreciation was $1.6 million. First Quarter 2012 Financial Estimates Based on revenues in the first six weeks of the first quarter of 2012 and taking into account the Company’s normal seasonal operating patterns, the Company’s financial estimates for the quarter ending March 31, 2012 are as follows: Revenues of $162 to $165 million Gross Margin of approximately 32.4% to 32.7% SG&A of approximately $42.5 million, which includes $0.2 million of acquisition related expenses, depreciation of approximately $1.5 million, amortization of approximately $0.6 million and approximately $1.1 million in equity-based compensation expense Adjusted EBITDA of $13.4 to $15.0 million Net income of $5.4 to $6.4 million Earnings per diluted share of $0.14 to $0.17 The estimates above do not reflect any impact of future winter storms and assumes no deterioration in the staffing markets On Assignment serves. The estimates assume year-over-year revenue growth in the mid 20% range for IT and Engineering and Life Sciences, the mid teens for Healthcare and the high 40% range for Physician staffing. On Assignment will hold its quarterly conference call to discuss its fourth quarter 2011 financial results this morning, Tuesday, February 14, 2012 at 6:00 a.m. Pacific Time. Interested parties are invited to listen to the conference call by dialing (877) 805-4089 or (281) 913-8521 ten minutes before the call. The conference ID number is 48870400. A replay of the conference call can be accessed from approximately 8:00 a.m. Pacific Time Tuesday, February 14, 2012 through Wednesday, March 14, 2012 by dialing (855) 859-2056 or (404) 537-3406 with the conference ID number 48870400. 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 |
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