ASGN Incorporated Reports Fourth Quarter and Full Year 2023 Results
- Revenues of $1.1 billion for the quarter and $4.5 billion for the full year
- Adjusted EBITDA margin of 11.3 percent for the quarter and 11.6 percent for the full year
- Repurchased approximately 0.9 million shares of common stock for $75.4 million in the quarter, and 3.4 million shares for $273.1 million for the full year
- Commercial consulting revenues surpassed $1.0 billion
- Federal Government Segment reported new contract awards of $1.0 billion
- None.
Insights
The reported financial results of ASGN Incorporated indicate a mixed performance for the fourth quarter and the full year of 2023. A key metric that stands out is the Adjusted EBITDA margin, which, at 11.6% for the full year, suggests a stable profitability level, albeit slightly lower than the previous year's 12.2%. This marginal decline could be attributed to the business mix and the competitive landscape of the IT services sector. Investors would also note the share repurchase program, which reflects management's confidence in the company's intrinsic value and could be a positive signal for stock valuation. However, the decline in Commercial Segment revenues by 12.2% year-over-year raises concerns about the company's performance in certain verticals, potentially impacting investor sentiment. The book-to-bill ratio in the Federal Government Segment below 1 could indicate a slowdown in future revenues, which warrants close monitoring in subsequent quarters.
ASGN's performance in the IT consulting sector, with a notable increase in revenues, underscores a strategic shift towards higher-value projects. This pivot towards IT consulting services, which now account for over half of the total revenues, aligns with the broader industry trend of digital transformation and the increasing demand for specialized IT expertise. The growth in this area, particularly the commercial consulting revenues surpassing $1.0 billion, suggests a robust demand for ASGN's services. However, the substantial year-over-year decline in assignment revenues points to potential vulnerabilities in the company's business model and its exposure to cyclical market fluctuations. This could have implications for the company's ability to sustain revenue growth in more volatile market conditions.
Analyzing the financial results from an economic perspective, the operating cash flows and Free Cash Flow figures are solid indicators of ASGN's liquidity and financial health. The company's ability to generate cash flows in excess of $400 million provides it with strategic flexibility to invest in growth opportunities or return capital to shareholders. Additionally, the company's capital allocation strategy, as evidenced by its stock repurchases, suggests a proactive approach to managing its equity and leveraging its balance sheet to enhance shareholder value. However, the gross margin contraction in both the Commercial and Federal Government Segments could signal cost pressures or pricing challenges, which may need to be addressed to maintain profitability in the face of economic headwinds.
Revenues, Gross Margin and Adj. EBITDA Margin at the top-end or above guidance ranges
Highlights
Fourth Quarter 2023
-
Revenues were
$1.1 billion -
Net income was
$50.3 million -
Adjusted EBITDA (a non-GAAP measure) was
$121.0 million -
Operating cash flows were
$116.4 million $109.2 million -
Repurchased approximately 0.9 million shares of the Company's common stock for
$75.4 million - IT Consulting Revenues were 55.3 percent of total revenues
Full Year 2023
-
Revenues were
$4.5 billion -
Net income was
$219.3 million -
Adjusted EBITDA (a non-GAAP measure) was
$517.2 million -
Operating cash flows were
$456.9 million $417.0 million -
Repurchased approximately 3.4 million shares of the Company's common stock for
$273.1 million -
IT Consulting Revenues were 53.3 percent of total revenues, and commercial consulting revenues surpassed
$1.0 billion -
Commercial Segment - New bookings were
$1.4 billion -
Federal Government Segment - New contract awards were
$1.0 billion
Management Commentary
“ASGN achieved solid results for the fourth quarter, with revenues, gross margin, and Adjusted EBITDA margin at the top-end, or above, our guidance ranges,” said ASGN Chief Executive Officer, Ted Hanson. “This success in the final quarter of the year resulted in revenues of approximately
Mr. Hanson continued, “ASGN has strategically shaped and purposefully built its business to perform well throughout market cycles, and our quarterly and full-year results demonstrate that our operating model is well positioned. We have evolved our service offerings to reflect our clients' needs. We will focus our efforts in 2024 on further strengthening our IT consulting capabilities, taking advantage of opportunities as we enter into higher-end, higher-value projects that position ASGN for continued success.”
Fourth Quarter and Full Year 2023 Financial Results - Summary
|
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Three Months Ended, |
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Year Ended, |
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December 31, |
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September 30, |
|
December 31, |
||||||||||||||
(In millions, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Segment |
$ |
748.6 |
|
|
$ |
852.2 |
|
|
$ |
782.4 |
|
|
$ |
3,174.4 |
|
|
$ |
3,435.7 |
|
Federal Government Segment |
|
325.5 |
|
|
|
298.2 |
|
|
|
334.4 |
|
|
|
1,276.2 |
|
|
|
1,145.4 |
|
|
|
1,074.1 |
|
|
|
1,150.4 |
|
|
|
1,116.8 |
|
|
|
4,450.6 |
|
|
|
4,581.1 |
|
|
|
|
|
|
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|
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||||||||||
Gross Margin |
|
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||||||||||
Commercial Segment |
|
32.1 |
% |
|
|
32.2 |
% |
|
|
32.5 |
% |
|
|
32.1 |
% |
|
|
32.8 |
% |
Federal Government Segment |
|
19.9 |
% |
|
|
22.1 |
% |
|
|
20.4 |
% |
|
|
20.6 |
% |
|
|
21.3 |
% |
Consolidated |
|
28.4 |
% |
|
|
29.6 |
% |
|
|
28.9 |
% |
|
|
28.8 |
% |
|
|
29.9 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations |
$ |
50.3 |
|
|
$ |
55.6 |
|
|
$ |
59.4 |
|
|
$ |
219.3 |
|
|
$ |
266.9 |
|
Income from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
Net income |
$ |
50.3 |
|
|
$ |
55.6 |
|
|
$ |
59.4 |
|
|
$ |
219.3 |
|
|
$ |
268.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share - Diluted |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
1.06 |
|
|
$ |
1.10 |
|
|
$ |
1.23 |
|
|
$ |
4.50 |
|
|
$ |
5.21 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
$ |
1.06 |
|
|
$ |
1.10 |
|
|
$ |
1.23 |
|
|
$ |
4.50 |
|
|
$ |
5.23 |
|
|
|
|
|
|
|
|
|
|
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Non-GAAP Financial Measures |
|
|
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|
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|
|
|
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||||||||||
Adjusted Net Income |
$ |
68.8 |
|
|
$ |
75.9 |
|
|
$ |
81.1 |
|
|
$ |
296.8 |
|
|
$ |
336.7 |
|
Adjusted Net Income per diluted share |
$ |
1.45 |
|
|
$ |
1.51 |
|
|
$ |
1.68 |
|
|
$ |
6.09 |
|
|
$ |
6.56 |
|
Adjusted EBITDA |
$ |
121.0 |
|
|
$ |
131.9 |
|
|
$ |
137.5 |
|
|
$ |
517.2 |
|
|
$ |
559.4 |
|
Adjusted EBITDA margin |
|
11.3 |
% |
|
|
11.5 |
% |
|
|
12.3 |
% |
|
|
11.6 |
% |
|
|
12.2 |
% |
__________
Notes:
Definitions of non-GAAP measures and reconciliation to GAAP measurements are included in the tables that accompany this release.
Consolidated revenues for the fourth quarter were
Total IT consulting services revenues were
Gross margin for the fourth quarter of 2023 was 28.4 percent, down 120 basis points from the fourth quarter of 2022. The compression mainly related to business mix: (i) within the Commercial Segment, a lower mix of certain high-margin assignment revenues, namely, creative digital marketing and permanent placement revenues, which was partially offset by a higher mix of high-margin IT consulting revenues with a year-over-year expansion in margin and (ii) a higher mix of revenues from the Federal Government Segment, which have a lower gross margin than commercial revenues.
Selling, general and administrative (“SG&A”) expenses were
Net income was
Adjusted EBITDA (a non-GAAP measure) was
Capital Resources and Capital Allocation
At December 31, 2023, the Company had:
-
Cash and cash equivalents of
$175.9 million -
Full availability under its
$500.0 million -
Senior Secured Debt of
$498.8 million -
Senior unsecured notes totaling
$550.0 million
In the fourth quarter of 2023 the Company repurchased 872,952 shares of its common stock for
First Quarter 2024 Financial Estimates
The Company's financial estimates for the first quarter of 2024, which are set forth below, are based on current operating trends and assume no significant deterioration in the markets ASGN serves. These estimates do not include any acquisition, integration or strategic planning expenses. Reconciliations of estimated net income to the estimated non-GAAP financial measures are included in the tables that accompany this release.
(In millions, except per share data) |
|
Low |
|
|
High |
||||
Revenues |
|
$ |
1,032.0 |
|
|
|
$ |
1,052.0 |
|
SG&A expenses(1) |
|
|
205.1 |
|
|
|
|
208.4 |
|
Amortization of intangible assets |
|
|
15.1 |
|
|
|
|
15.1 |
|
Net income |
|
|
37.7 |
|
|
|
|
41.3 |
|
|
|
|
|
|
|
||||
Diluted earnings per share |
|
$ |
0.80 |
|
|
|
$ |
0.87 |
|
Gross margin |
|
|
28.0 |
% |
|
|
|
28.3 |
% |
Effective tax rate(2) |
|
|
28.0 |
% |
|
|
|
28.0 |
% |
|
|
|
|
|
|
||||
Non-GAAP Financial Measures: |
|
|
|
|
|
||||
Adjusted EBITDA |
|
$ |
104.5 |
|
|
|
$ |
109.5 |
|
Adjusted Net Income(3) |
|
$ |
52.2 |
|
|
|
$ |
55.8 |
|
Adjusted Net Income per diluted share(3) |
|
$ |
1.10 |
|
|
|
$ |
1.18 |
|
Adjusted EBITDA Margin |
|
|
10.1 |
% |
|
|
|
10.4 |
% |
___________
-
Includes non-cash expenses totaling
$20.0 million $11.9 million $7.0 million $1.1 million - Estimated effective tax rate before any excess tax benefits related to stock-based compensation.
-
Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets.” These savings total
$8.5 million $0.18
The financial estimates above are based on an estimate of “Billable Days”, which are Business Days (calendar days for the period less weekends and holidays) adjusted for other factors, such as the day of the week a holiday occurs, additional time taken off around holidays, year-end client furloughs and inclement weather. There are 62.75 Billable Days in the first quarter of 2024, which is 0.25 days fewer than the year ago period and 2.75 days more than Q4 2023. The above estimates also include the effects of the payroll tax reset, which occurs at the beginning of each year. These annual resets cause, among other things, lower gross and Adjusted EBITDA margins in the first quarter of the year.
Conference Call
The Company will hold a conference call today at 4:30 p.m. ET to review its financial results for the fourth quarter and full year 2023 and to provide first quarter 2024 estimates. The dial-in number is 877-407-0792 (+1-201-689-8263 for callers outside
A replay of the conference call will be available beginning today at 7:30 p.m. ET until February 21, 2024. The access number for the replay is 844-512-2921 (+1-412-317-6671 for callers outside
About ASGN Incorporated
ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions to the commercial and government sectors. ASGN helps corporate enterprises and government organizations develop, implement and operate critical IT and business solutions through its integrated offerings. For more information, please visit asgn.com.
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 our anticipated financial and operating performance.
All statements in this news 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, we make no assurances that the proposed revenue, expense and profit estimates outlined above will be achieved. Additional examples of forward-looking statements in this press release include, without limitation, statements regarding our ability to attract, train and retain qualified staffing consultants, the availability of qualified contract professionals, management of our growth, continued performance and improvement of our enterprise-wide information systems, our ability to manage our litigation matters, the successful integration of acquisitions and other risks detailed from time to time in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC on February 27, 2023. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.
CONSOLIDATED SELECTED FINANCIAL DATA (Unaudited)
(In millions, except per share data)
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
|||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
Results of Operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
1,074.1 |
|
|
$ |
1,150.4 |
|
|
$ |
1,116.8 |
|
|
$ |
4,450.6 |
|
|
$ |
4,581.1 |
|
Costs of services |
|
769.2 |
|
|
|
810.3 |
|
|
|
794.4 |
|
|
|
3,170.6 |
|
|
|
3,211.5 |
|
Gross profit |
|
304.9 |
|
|
|
340.1 |
|
|
|
322.4 |
|
|
|
1,280.0 |
|
|
|
1,369.6 |
|
Selling, general and administrative expenses |
|
203.6 |
|
|
|
229.9 |
|
|
|
206.0 |
|
|
|
844.2 |
|
|
|
895.0 |
|
Amortization of intangible assets |
|
17.9 |
|
|
|
19.8 |
|
|
|
17.8 |
|
|
|
71.7 |
|
|
|
65.1 |
|
Operating income |
|
83.4 |
|
|
|
90.4 |
|
|
|
98.6 |
|
|
|
364.1 |
|
|
|
409.5 |
|
Interest expense |
|
(16.7 |
) |
|
|
(14.4 |
) |
|
|
(18.5 |
) |
|
|
(66.4 |
) |
|
|
(45.9 |
) |
Income before income taxes |
|
66.7 |
|
|
|
76.0 |
|
|
|
80.1 |
|
|
|
297.7 |
|
|
|
363.6 |
|
Provision for income taxes |
|
16.4 |
|
|
|
20.4 |
|
|
|
20.7 |
|
|
|
78.4 |
|
|
|
96.7 |
|
Income from continuing operations |
|
50.3 |
|
|
|
55.6 |
|
|
|
59.4 |
|
|
|
219.3 |
|
|
|
266.9 |
|
Income from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
Net income |
$ |
50.3 |
|
|
$ |
55.6 |
|
|
$ |
59.4 |
|
|
$ |
219.3 |
|
|
$ |
268.1 |
|
|
|
|
|
|
|
||||||||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
1.07 |
|
|
$ |
1.12 |
|
|
$ |
1.23 |
|
|
$ |
4.54 |
|
|
$ |
5.27 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Net income |
$ |
1.07 |
|
|
$ |
1.12 |
|
|
$ |
1.23 |
|
|
$ |
4.54 |
|
|
$ |
5.30 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
1.06 |
|
|
$ |
1.10 |
|
|
$ |
1.23 |
|
|
$ |
4.50 |
|
|
$ |
5.21 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Net income |
$ |
1.06 |
|
|
$ |
1.10 |
|
|
$ |
1.23 |
|
|
$ |
4.50 |
|
|
$ |
5.23 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of shares and share equivalents used to calculate earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
47.1 |
|
|
|
49.8 |
|
|
|
48.1 |
|
|
|
48.3 |
|
|
|
50.6 |
|
Diluted |
|
47.5 |
|
|
|
50.4 |
|
|
|
48.4 |
|
|
|
48.7 |
|
|
|
51.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|||||||||||||||||||
CONSOLIDATED SELECTED FINANCIAL DATA (Continued) (Unaudited)
(In millions)
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
Summary Statements of Cash Flow Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating activities |
$ |
116.4 |
|
|
$ |
75.3 |
|
|
$ |
147.5 |
|
|
$ |
456.9 |
|
|
$ |
307.8 |
|
Cash used in investing activities |
|
(7.2 |
) |
|
|
(143.4 |
) |
|
|
(9.8 |
) |
|
|
(40.5 |
) |
|
|
(510.0 |
) |
Cash used in financing activities |
|
(79.3 |
) |
|
|
(72.8 |
) |
|
|
(85.6 |
) |
|
|
(310.9 |
) |
|
|
(256.5 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of GAAP to Non-GAAP Measure: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating activities |
$ |
116.4 |
|
|
$ |
75.3 |
|
|
$ |
147.5 |
|
|
$ |
456.9 |
|
|
$ |
307.8 |
|
Capital expenditures |
|
(7.2 |
) |
|
|
(10.5 |
) |
|
|
(9.8 |
) |
|
|
(39.9 |
) |
|
|
(37.5 |
) |
Free Cash Flow (non-GAAP measure) |
$ |
109.2 |
|
|
$ |
64.8 |
|
|
$ |
137.7 |
|
|
$ |
417.0 |
|
|
$ |
270.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, |
|
December 31, |
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
||||||
Summary Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
175.9 |
|
|
$ |
70.3 |
|
|
|
|
|
|
|
||||||
Working capital |
|
579.2 |
|
|
|
539.2 |
|
|
|
|
|
|
|
||||||
Goodwill and intangible assets, net |
|
2,392.0 |
|
|
|
2,461.6 |
|
|
|
|
|
|
|
||||||
Total assets |
|
3,544.6 |
|
|
|
3,585.7 |
|
|
|
|
|
|
|
||||||
Long-term debt |
|
1,036.6 |
|
|
|
1,066.6 |
|
|
|
|
|
|
|
||||||
Total liabilities |
|
1,652.5 |
|
|
|
1,684.4 |
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
|
1,892.1 |
|
|
|
1,901.3 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited)
(In millions, except per share data)
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
Net income |
$ |
50.3 |
|
$ |
55.6 |
|
$ |
59.4 |
|
$ |
219.3 |
|
$ |
268.1 |
Income from discontinued operations, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1.2 |
Income from continuing operations |
|
50.3 |
|
|
55.6 |
|
|
59.4 |
|
|
219.3 |
|
|
266.9 |
Interest expense |
|
16.7 |
|
|
14.4 |
|
|
18.5 |
|
|
66.4 |
|
|
45.9 |
Provision for income taxes |
|
16.4 |
|
|
20.4 |
|
|
20.7 |
|
|
78.4 |
|
|
96.7 |
Amortization and depreciation(1) |
|
25.7 |
|
|
26.6 |
|
|
24.8 |
|
|
100.3 |
|
|
91.4 |
EBITDA (non-GAAP measure) |
|
109.1 |
|
|
117.0 |
|
|
123.4 |
|
|
464.4 |
|
|
500.9 |
Stock-based compensation |
|
10.3 |
|
|
13.4 |
|
|
10.3 |
|
|
44.0 |
|
|
49.3 |
Legal settlement expense |
|
— |
|
|
— |
|
|
2.7 |
|
|
2.7 |
|
|
— |
Acquisition, integration and strategic planning expenses |
|
1.6 |
|
|
1.5 |
|
|
1.1 |
|
|
6.1 |
|
|
9.2 |
Adjusted EBITDA (non-GAAP measure) |
$ |
121.0 |
|
$ |
131.9 |
|
$ |
137.5 |
|
$ |
517.2 |
|
$ |
559.4 |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
50.3 |
|
|
$ |
55.6 |
|
|
$ |
59.4 |
|
|
$ |
219.3 |
|
|
$ |
268.1 |
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
Income from continuing operations |
|
50.3 |
|
|
|
55.6 |
|
|
|
59.4 |
|
|
|
219.3 |
|
|
|
266.9 |
|
Credit facility amendment expenses |
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
|
— |
|
Legal settlement expense |
|
— |
|
|
|
— |
|
|
|
2.7 |
|
|
|
2.7 |
|
|
|
— |
|
Acquisition, integration and strategic planning expenses |
|
1.6 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
6.1 |
|
|
|
9.2 |
|
Tax effect on adjustments |
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(1.6 |
) |
|
|
(2.9 |
) |
|
|
(2.3 |
) |
Non-GAAP net income |
|
51.5 |
|
|
|
56.8 |
|
|
|
63.9 |
|
|
|
227.5 |
|
|
|
273.8 |
|
Amortization of intangible assets |
|
17.9 |
|
|
|
19.8 |
|
|
|
17.8 |
|
|
|
71.7 |
|
|
|
65.1 |
|
Other |
|
(0.6 |
) |
|
|
(0.7 |
) |
|
|
(0.6 |
) |
|
|
(2.4 |
) |
|
|
(2.2 |
) |
Adjusted Net Income (non-GAAP measure)(2) |
$ |
68.8 |
|
|
$ |
75.9 |
|
|
$ |
81.1 |
|
|
$ |
296.8 |
|
|
$ |
336.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per diluted share: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
1.06 |
|
|
$ |
1.10 |
|
|
$ |
1.23 |
|
|
$ |
4.50 |
|
|
$ |
5.23 |
|
Adjustments |
|
0.39 |
|
|
|
0.41 |
|
|
|
0.45 |
|
|
|
1.59 |
|
|
|
1.33 |
|
Adjusted Net Income (non-GAAP measure)(2) |
$ |
1.45 |
|
|
$ |
1.51 |
|
|
$ |
1.68 |
|
|
$ |
6.09 |
|
|
$ |
6.56 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares and share equivalents (diluted) |
|
47.5 |
|
|
|
50.4 |
|
|
|
48.4 |
|
|
|
48.7 |
|
|
|
51.3 |
|
_________
-
The fourth quarter of 2023 includes (i)
$17.9 million $7.1 million $0.7 million -
Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets,” which currently total approximately
$8.5 million $0.18
FINANCIAL ESTIMATES FOR THE FIRST QUARTER OF 2024
RECONCILIATIONS OF ESTIMATED GAAP TO NON-GAAP MEASURES
(In millions, except per share data)
|
|
Low |
|
High |
|
|||
Net income(1) |
|
$ |
37.7 |
|
$ |
41.3 |
|
|
Interest expense |
|
|
16.8 |
|
|
16.8 |
|
|
Provision for income taxes |
|
|
14.6 |
|
|
16.0 |
|
|
Amortization and depreciation(2) |
|
|
23.5 |
|
|
23.5 |
|
|
EBITDA (non-GAAP measure) |
|
|
92.6 |
|
|
97.6 |
|
|
Stock-based compensation |
|
|
11.9 |
|
|
11.9 |
|
|
Adjusted EBITDA (non-GAAP measure) |
|
$ |
104.5 |
|
$ |
109.5 |
|
|
|
|
Low |
|
High |
|
|||||
Net income(1) |
|
$ |
37.7 |
|
|
$ |
41.3 |
|
|
|
Amortization of intangible assets |
|
|
15.1 |
|
|
|
15.1 |
|
|
|
Other |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
Adjusted Net Income (non-GAAP measure)(3) |
|
$ |
52.2 |
|
|
$ |
55.8 |
|
|
|
|
|
|
|
|
|
|||||
Per diluted share: |
|
|
|
|
|
|||||
Net income |
|
$ |
0.80 |
|
|
$ |
0.87 |
|
|
|
Adjustments |
|
|
0.30 |
|
|
|
0.31 |
|
|
|
Adjusted Net Income (non-GAAP measure)(3) |
|
$ |
1.10 |
|
|
$ |
1.18 |
|
|
|
_______
- Does not include acquisition, integration and strategic planning expenses, or excess tax benefits related to stock-based compensation.
-
Includes (i)
$15.1 million $7.3 million $1.1 million -
Does not include the "Cash Tax Savings on Indefinite-lived Intangible Assets". These savings total
$8.5 million $0.18
Non-GAAP Financial Measures
Statements in this release and the accompanying financial information include non-GAAP financial measures that are provided as additional information to enhance the overall understanding of the Company's current financial performance and not as an alternative to the consolidated interim financial statements presented in accordance with accounting principles generally accepted in
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide a measure of the Company's operating results in a manner that is focused on the performance of the Company's core business on an ongoing basis, by removing the effects of non-operating and certain non-cash expenses. These non-operating and non-cash items are specifically identified in the reconciliations of GAAP measures to Non-GAAP measures that accompany this release.
Adjusted Net Income provides a method for assessing the Company's operating results in a manner that is focused on the performance of the Company's core business on an ongoing basis by removing the effects of non-operating and certain non-cash expenses, adjusted for some of the cash flows associated with amortization of intangible assets to more fully present the performance of the Company's acquisitions. The calculation of Adjusted Net Income is presented in the reconciliations of GAAP measures to Non-GAAP measures that accompany this release.
Free Cash Flow provides useful information to investors about the amount of cash generated by the business that can be used for strategic opportunities and is computed as presented in the tables that accompany this release.
Commercial consulting bookings are defined as the value of new contracts entered into during a specified period, including adjustments for the effects of changes in contract scope and contract terminations.
Federal Government Segment new contract awards are defined as the estimated amount of future revenues to be recognized under contracts awarded during a specified period, including adjustments to estimates for contracts awarded in previous periods.
The book-to-bill ratio for the Federal Government Segment is the ratio of New Contract Awards to revenues for a specified period.
Revenues calculated on a Same Billable Days basis provide more comparable information by removing the effect of differences in the number of billable days on a year-over-year basis. Revenues on a Same Billable Days basis are adjusted for the following items: differences in billable days during the period by taking the current-period average revenue per billable day, multiplied by the number of billable days from the same period in the prior year; Billable Days are business days (calendar days for the period less weekends and holidays) adjusted for other factors, such as the day of the week a holiday occurs, additional time taken off around holidays, year-end client furloughs and inclement weather.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206350045/en/
Kimberly Esterkin
Vice President, Investor Relations
kimberly.esterkin@asgn.com
Source: ASGN Incorporated
FAQ
What were ASGN's revenues for the fourth quarter and full year 2023?
What was ASGN's Adjusted EBITDA margin for the fourth quarter and full year 2023?
How many shares did ASGN repurchase in the fourth quarter and full year 2023?
What was the amount of new contract awards reported by ASGN's Federal Government Segment?
What was the amount of commercial consulting revenues for ASGN in 2023?
