ASGN Incorporated Reports Second Quarter 2022 Results
ASGN Incorporated (NYSE: ASGN) reported strong Q2 2022 financial results, with revenues reaching $1.1 billion, a 17.1% increase from Q2 2021. Income from continuing operations was $72.6 million, up 26.7% year-over-year. Adjusted EBITDA hit $144.0 million, which is 12.6% of revenues. ASGN announced a new $400 million stock repurchase program and completed the acquisition of GlideFast Consulting for $350 million. The company anticipates Q3 2022 revenues between $1.183 billion and $1.203 billion, with earnings per share estimated at $1.39 to $1.46.
- Revenues increased by 17.1% year-over-year to $1.1 billion.
- Income from continuing operations rose 26.7% to $72.6 million.
- Adjusted EBITDA grew 20.7% to $144.0 million, with a margin of 12.6%.
- New $400 million stock repurchase program approved.
- Acquired GlideFast Consulting for $350 million, expanding IT consulting capabilities.
- SG&A expenses rose 24.9% year-over-year to $220.4 million, impacting profit margins.
Financial Results Exceeded Previously-announced Guidance Estimates
Q2 2022 Highlights
-
Revenues were
, up 17.1 percent over the second quarter of 2021$1.1 billion -
Income from continuing operations was
, up 26.7 percent over the second quarter of 2021$72.6 million -
Adjusted EBITDA (a non-GAAP measure) from continuing operations was
(12.6 percent of revenues), up from$144.0 million (12.2 percent of revenues) in the second quarter of 2021$119.3 million -
Spent
to repurchase 911,700 shares of the Company's common stock$91.2 million -
Entered into an agreement (which closed on
July 6, 2022 ) to acquireGlideFast Consulting , an Elite ServiceNow partner and leading IT consulting, implementation and development company, for in cash$350.0 million -
Subsequent to quarter end, ASGN's Board of Directors approved a new two-year
stock repurchase program$400 million
Management Commentary
“The second quarter capped off a strong first half to the year, as ASGN’s business continued to build momentum, which has carried into the second half of the year,” said ASGN Chief Executive Officer,
"Importantly, customers continue to see investments in technology as a business driver, and IT spend is not slowing in the face of recessionary pressures. On the commercial side, our customers are confident in their digital roadmaps and are actively bidding out new work, including ServiceNow implementations as a result of our recent GlideFast acquisition. On the government side, our customers are seeing the benefit of the flow through of the new federal budget, which tends to be counter-cyclical and is aligned with the areas in which ASGN excels. These favorable market dynamics in both the commercial and government end markets, along with the critical nature of the work ASGN performs, create consistent demand for our IT services and solutions and provide us with confidence in the stability of our business as we head into the second half of this year.”
Second Quarter of 2022 Financial Results - Summary
|
|
|
|
Change |
||||||||||||||
(In millions, except per share data) |
Q2 2022 |
Q2 2021 |
Q1 2022 |
Y-Y |
Sequential |
|||||||||||||
Revenues |
|
|
|
|
|
|||||||||||||
Commercial Segment |
$ |
850.6 |
|
$ |
712.5 |
|
$ |
832.9 |
|
19.4 |
% |
2.1 |
% |
|||||
Federal Government Segment |
|
291.2 |
|
|
262.4 |
|
|
258.1 |
|
11.0 |
% |
12.8 |
% |
|||||
|
|
1,141.8 |
|
|
974.9 |
|
|
1,091.0 |
|
17.1 |
% |
4.7 |
% |
|||||
Gross Margin |
|
|
|
|
|
|||||||||||||
Commercial Segment |
|
33.1 |
% |
|
32.0 |
% |
|
32.7 |
% |
1.1 |
% |
0.4 |
% |
|||||
Federal Government Segment |
|
21.4 |
% |
|
18.3 |
% |
|
20.9 |
% |
3.1 |
% |
0.5 |
% |
|||||
Consolidated |
|
30.1 |
% |
|
28.3 |
% |
|
29.9 |
% |
1.8 |
% |
0.2 |
% |
|||||
|
|
|
|
|
|
|||||||||||||
Income from continuing operations |
$ |
72.6 |
|
$ |
57.3 |
|
$ |
67.6 |
|
26.7 |
% |
7.4 |
% |
|||||
Income (loss) from discontinued operations |
|
(0.1 |
) |
|
6.9 |
|
|
(0.8 |
) |
N/M |
|
N/M |
|
|||||
Net Income |
$ |
72.5 |
|
$ |
64.2 |
|
$ |
66.8 |
|
12.9 |
% |
8.5 |
% |
|||||
|
|
|
|
|
|
|||||||||||||
Earnings per share - Diluted |
|
|
|
|
|
|||||||||||||
Continuing operations |
$ |
1.41 |
|
$ |
1.06 |
|
$ |
1.29 |
|
33.0 |
% |
9.3 |
% |
|||||
Discontinued operations |
|
— |
|
|
0.13 |
|
|
(0.01 |
) |
N/M |
|
N/M |
|
|||||
|
$ |
1.41 |
|
$ |
1.19 |
|
$ |
1.28 |
|
18.5 |
% |
10.2 |
% |
|||||
|
|
|
|
|
|
|||||||||||||
Non-GAAP Financial Measures (from Continuing Operations) |
|
|
|
|
|
|||||||||||||
Adjusted Net Income |
$ |
88.0 |
|
$ |
70.9 |
|
$ |
82.1 |
|
24.1 |
% |
7.2 |
% |
|||||
Adjusted Net Income per diluted share |
$ |
1.71 |
|
$ |
1.32 |
|
$ |
1.57 |
|
29.5 |
% |
8.9 |
% |
|||||
Adjusted EBITDA |
$ |
144.0 |
|
$ |
119.3 |
|
$ |
134.8 |
|
20.7 |
% |
6.8 |
% |
|||||
Adjusted EBITDA margin |
|
12.6 |
% |
|
12.2 |
% |
|
12.4 |
% |
0.4 |
% |
0.2 |
% |
__________ |
Notes: |
Definitions of non-GAAP measures and reconciliation to GAAP measurements are included in the tables that accompany this release. |
N/M means not meaningful. |
Consolidated revenues for the second quarter of 2022 were up 17.1 percent over the second quarter of last year. Revenues for the second quarter of 2022 included approximately
Revenues from the Commercial Segment (74.5 percent of total revenues) were up 19.4 percent over the second quarter of last year. Assignment revenues totaled
Revenues from the Commercial Segment's IT services and solutions division accounted for 83.1 percent of the segment's revenues, up 19.1 percent over the second quarter of 2021 driven by high growth in consulting services and high single-digit growth in IT staffing services. Revenues from the segment's creative digital marketing and permanent placement divisions accounted for 16.9 percent of the segment's revenues, up 20.6 percent year-over-year.
Revenues from the Federal Government Segment (25.5 percent of revenues) were up 11.0 percent year-over-year. Federal Government Segment revenues for the second quarter included
Gross margin for the second quarter of 2022 was 30.1 percent, up 180 basis points over the second quarter of last year. Both business segments and all operating divisions reported year-over-year expansion in gross margin for the quarter. The expansion in gross margin of the Commercial Segment was driven by the double-digit growth of its high-margin services (commercial consulting, creative digital marketing and permanent placement). The expansion in gross margin of the Federal Government Segment was driven by changes in business mix, including the contribution of high-margin businesses acquired in 2021, a lower mix of revenues from low-margin services and higher profitability under certain firm fixed price contracts.
Selling, general and administrative ("SG&A") expenses were
Income from continuing operations for the second quarter of 2022 was
Adjusted EBITDA (a non-GAAP measure) was
Share Repurchase Program
The Company also announced today that its Board of Directors approved a new stock repurchase program under which the Company may repurchase up to
Liquidity and Capital Resources
The Company's primary source of liquidity is cash flows from operating activities, which have been sufficient to fund working capital and capital expenditure requirements.
At
-
Cash and cash equivalents of
$490.6 million -
Full availability under its
Senior Secured Revolving Credit Facility (due 2024)$250.0 million -
Outstanding Senior Secured Debt of
(term B loan facility due 2025)$490.8 million -
Senior unsecured notes totaling
at 4.625 percent (due 2028)$550.0 million
Borrowings under the Company’s
Third Quarter 2022 Financial Estimates
The Company's financial estimates for the third quarter of 2022, 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 |
|
$ |
1,183.0 |
|
|
|
$ |
1,203.0 |
|
SG&A expenses(1) |
|
|
225.7 |
|
|
|
|
229.1 |
|
Amortization of intangible assets |
|
|
17.9 |
|
|
|
|
17.9 |
|
Net income |
|
|
70.5 |
|
|
|
|
74.1 |
|
|
|
|
|
|
|
||||
Earnings per share - Diluted: |
|
$ |
1.39 |
|
|
|
$ |
1.46 |
|
Diluted shares outstanding |
|
|
50.8 |
|
|
|
|
50.8 |
|
Gross margin |
|
|
29.8 |
% |
|
|
|
30.0 |
% |
Effective tax rate(2) |
|
|
27.5 |
% |
|
|
|
27.5 |
% |
|
|
|
|
|
|
||||
Non-GAAP Financial Measures: |
|
|
|
|
|
||||
Adjusted EBITDA |
|
$ |
145.0 |
|
|
|
$ |
150.0 |
|
Adjusted Net Income(3) |
|
$ |
88.1 |
|
|
|
$ |
91.7 |
|
Adjusted Net Income per diluted share(3) |
|
$ |
1.73 |
|
|
|
$ |
1.80 |
|
Adjusted EBITDA Margin |
|
|
12.3 |
% |
|
|
|
12.5 |
% |
___________ |
||
(1) |
Includes non-cash expenses totaling |
|
(2) |
Estimated effective tax rate before any excess tax benefits related to stock-based compensation. |
|
(3) |
Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets.” These savings total |
The financial estimates above are based on estimated of “Billable Days” of 64.0 which is the same number of days as the third quarter of 2021 and half a day more than the second quarter of 2022. Billable Days are defined as 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, and additional time taken off around holidays.
The implied revenue growth rate for the third quarter ranges from 10.2 percent to 12.0 percent. Guidance includes estimated revenues of
Conference Call
The Company will hold a conference call today at
A replay of the conference call will be available beginning today at
About
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 scenarios 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 our acquired subsidiaries and other risks detailed from time to time in our reports filed with the
CONSOLIDATED SELECTED FINANCIAL DATA (Unaudited) |
||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|||||||||||
Results of Operations: |
|
|
|
|
|
|||||||||||||||
Revenues |
$ |
1,141.8 |
|
$ |
974.9 |
|
$ |
1,091.0 |
|
$ |
2,232.8 |
|
$ |
1,881.9 |
|
|||||
Costs of services |
|
797.8 |
|
|
698.6 |
|
|
764.4 |
|
|
1,562.2 |
|
|
1,361.9 |
|
|||||
Gross profit |
|
344.0 |
|
|
276.3 |
|
|
326.6 |
|
|
670.6 |
|
|
520.0 |
|
|||||
Selling, general and administrative expenses |
|
220.4 |
|
|
176.4 |
|
|
212.1 |
|
|
432.5 |
|
|
340.7 |
|
|||||
Amortization of intangible assets |
|
13.5 |
|
|
12.0 |
|
|
13.9 |
|
|
27.4 |
|
|
24.0 |
|
|||||
Operating income |
|
110.1 |
|
|
87.9 |
|
|
100.6 |
|
|
210.7 |
|
|
155.3 |
|
|||||
Interest expense |
|
(10.1 |
) |
|
(9.4 |
) |
|
(9.3 |
) |
|
(19.4 |
) |
|
(18.6 |
) |
|||||
Income before income taxes |
|
100.0 |
|
|
78.5 |
|
|
91.3 |
|
|
191.3 |
|
|
136.7 |
|
|||||
Provision for income taxes |
|
27.4 |
|
|
21.2 |
|
|
23.7 |
|
|
51.1 |
|
|
36.6 |
|
|||||
Income from continuing operations |
|
72.6 |
|
|
57.3 |
|
|
67.6 |
|
|
140.2 |
|
|
100.1 |
|
|||||
Income (loss) from discontinued operations, net of income taxes |
|
(0.1 |
) |
|
6.9 |
|
|
(0.8 |
) |
|
(0.9 |
) |
|
12.8 |
|
|||||
Net income |
$ |
72.5 |
|
$ |
64.2 |
|
$ |
66.8 |
|
$ |
139.3 |
|
$ |
112.9 |
|
|||||
|
|
|
|
|||||||||||||||||
Basic earnings per common share: |
|
|
|
|
|
|||||||||||||||
Continuing operations |
$ |
1.42 |
|
$ |
1.08 |
|
$ |
1.31 |
|
$ |
2.73 |
|
$ |
1.89 |
|
|||||
Discontinued operations |
|
— |
|
|
0.13 |
|
|
(0.01 |
) |
|
(0.01 |
) |
|
0.24 |
|
|||||
Net income |
$ |
1.42 |
|
$ |
1.21 |
|
$ |
1.30 |
|
$ |
2.72 |
|
$ |
2.13 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Diluted earnings per common share: |
|
|
|
|
|
|||||||||||||||
Continuing operations |
$ |
1.41 |
|
$ |
1.06 |
|
$ |
1.29 |
|
$ |
2.70 |
|
$ |
1.86 |
|
|||||
Discontinued operations |
|
— |
|
|
0.13 |
|
|
(0.01 |
) |
|
(0.01 |
) |
|
0.24 |
|
|||||
Net income |
$ |
1.41 |
|
$ |
1.19 |
|
$ |
1.28 |
|
$ |
2.69 |
|
$ |
2.10 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Number of shares and share equivalents used to calculate earnings per share: |
|
|
|
|
|
|||||||||||||||
Basic |
|
51.0 |
|
|
53.2 |
|
|
51.6 |
|
|
51.3 |
|
|
53.1 |
|
|||||
Diluted |
|
51.6 |
|
|
53.9 |
|
|
52.3 |
|
|
52.0 |
|
|
53.8 |
|
CONSOLIDATED SELECTED FINANCIAL DATA (Continued) (Unaudited) |
||||||||||||||||||||
(In millions) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|||||||||||
Summary Statements of Cash Flow Data: |
|
|
|
|
|
|||||||||||||||
Cash provided by operating activities |
$ |
88.4 |
|
$ |
84.9 |
|
$ |
56.0 |
|
$ |
144.4 |
|
$ |
204.7 |
|
|||||
Cash provided by (used in) investing activities |
|
(6.3 |
) |
|
(94.0 |
) |
|
0.2 |
|
|
(6.1 |
) |
|
(103.4 |
) |
|||||
Cash provided by (used in) financing activities |
|
(93.7 |
) |
|
(2.8 |
) |
|
(83.4 |
) |
|
(177.1 |
) |
|
0.1 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Measure: |
|
|
|
|
|
|||||||||||||||
Cash provided by operating activities |
$ |
88.4 |
|
$ |
84.9 |
|
$ |
56.0 |
|
$ |
144.4 |
|
$ |
204.7 |
|
|||||
Less - Cash flows from discontinued operations |
|
— |
|
|
(5.8 |
) |
|
— |
|
|
— |
|
|
(11.5 |
) |
|||||
Cash provided by operating activities from continuing operations |
|
88.4 |
|
|
79.1 |
|
|
56.0 |
|
|
144.4 |
|
|
193.2 |
|
|||||
Less - Capital expenditures from continuing operations |
|
(8.8 |
) |
|
(6.8 |
) |
|
(9.6 |
) |
|
(18.4 |
) |
|
(14.1 |
) |
|||||
Free Cash Flow from continuing operations (non-GAAP measure) |
$ |
79.6 |
|
$ |
72.3 |
|
$ |
46.4 |
|
$ |
126.0 |
|
$ |
179.1 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2022 |
2021 |
|
|
|
|||||||||||||||
Summary Balance Sheet Data: |
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents |
$ |
490.6 |
|
$ |
529.6 |
|
|
|
|
|||||||||||
Working capital |
|
873.9 |
|
|
858.5 |
|
|
|
|
|||||||||||
|
|
2,020.6 |
|
|
2,057.4 |
|
|
|
|
|||||||||||
Total assets |
|
3,524.5 |
|
|
3,502.8 |
|
|
|
|
|||||||||||
Long-term debt |
|
1,034.5 |
|
|
1,033.9 |
|
|
|
|
|||||||||||
Total liabilities |
|
1,668.4 |
|
|
1,637.4 |
|
|
|
|
|||||||||||
Total stockholders’ equity |
|
1,856.1 |
|
|
1,865.4 |
|
|
|
|
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited) |
||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|||||||||||
Net income |
$ |
72.5 |
|
$ |
64.2 |
|
$ |
66.8 |
|
$ |
139.3 |
|
$ |
112.9 |
|
|||||
Income from discontinued operations, net of tax |
|
(0.1 |
) |
|
6.9 |
|
|
(0.8 |
) |
|
(0.9 |
) |
|
12.8 |
|
|||||
Income from continuing operations |
|
72.6 |
|
|
57.3 |
|
|
67.6 |
|
|
140.2 |
|
|
100.1 |
|
|||||
Interest expense |
|
10.1 |
|
|
9.4 |
|
|
9.3 |
|
|
19.4 |
|
|
18.6 |
|
|||||
Provision for income taxes |
|
27.4 |
|
|
21.2 |
|
|
23.7 |
|
|
51.1 |
|
|
36.6 |
|
|||||
Depreciation |
|
6.1 |
|
|
7.1 |
|
|
6.2 |
|
|
12.3 |
|
|
14.6 |
|
|||||
Amortization of intangible assets |
|
13.5 |
|
|
12.0 |
|
|
13.9 |
|
|
27.4 |
|
|
24.0 |
|
|||||
EBITDA (non-GAAP measure) |
|
129.7 |
|
|
107.0 |
|
|
120.7 |
|
|
250.4 |
|
|
193.9 |
|
|||||
Stock-based compensation |
|
11.2 |
|
|
9.7 |
|
|
12.8 |
|
|
24.0 |
|
|
18.9 |
|
|||||
Acquisition, integration and strategic planning expenses |
|
3.1 |
|
|
2.6 |
|
|
1.3 |
|
|
4.4 |
|
|
3.4 |
|
|||||
Adjusted EBITDA (non-GAAP measure) |
$ |
144.0 |
|
$ |
119.3 |
|
$ |
134.8 |
|
$ |
278.8 |
|
$ |
216.2 |
|
|||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
|||||||||||
Net income |
$ |
72.5 |
|
$ |
64.2 |
|
$ |
66.8 |
|
$ |
139.3 |
|
$ |
112.9 |
|
|||||
Income from discontinued operations, net of tax |
|
(0.1 |
) |
|
6.9 |
|
|
(0.8 |
) |
|
(0.9 |
) |
|
12.8 |
|
|||||
Income from continuing operations |
|
72.6 |
|
|
57.3 |
|
|
67.6 |
|
|
140.2 |
|
|
100.1 |
|
|||||
Acquisition, integration and strategic planning expenses |
|
3.1 |
|
|
2.6 |
|
|
1.3 |
|
|
4.4 |
|
|
3.4 |
|
|||||
Tax effect on adjustments |
|
(0.8 |
) |
|
(0.7 |
) |
|
(0.3 |
) |
|
(1.1 |
) |
|
(0.9 |
) |
|||||
Non-GAAP net income |
|
74.9 |
|
|
59.2 |
|
|
68.6 |
|
|
143.5 |
|
|
102.6 |
|
|||||
Amortization of intangible assets |
|
13.5 |
|
|
12.0 |
|
|
13.9 |
|
|
27.4 |
|
|
24.0 |
|
|||||
Other |
|
(0.4 |
) |
|
(0.3 |
) |
|
(0.4 |
) |
|
(0.8 |
) |
|
(0.6 |
) |
|||||
Adjusted Net Income (non-GAAP measure)(1) |
$ |
88.0 |
|
$ |
70.9 |
|
$ |
82.1 |
|
$ |
170.1 |
|
$ |
126.0 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Per diluted share: |
|
|
|
|
|
|||||||||||||||
Net income |
$ |
1.41 |
|
$ |
1.19 |
|
$ |
1.28 |
|
$ |
2.68 |
|
$ |
2.10 |
|
|||||
Adjustments |
|
0.30 |
|
|
0.13 |
|
|
0.29 |
|
|
0.59 |
|
|
0.24 |
|
|||||
Adjusted Net Income (non-GAAP measure)(1) |
$ |
1.71 |
|
$ |
1.32 |
|
$ |
1.57 |
|
$ |
3.27 |
|
$ |
2.34 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Common shares and share equivalents (diluted) |
|
51.6 |
|
|
53.9 |
|
|
52.3 |
|
|
52.0 |
|
|
53.8 |
|
_________ |
||
(1) |
Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets,” which currently total approximately |
FINANCIAL ESTIMATES FOR THE THIRD QUARTER OF 2022 |
||||||||
RECONCILIATIONS OF ESTIMATED GAAP TO NON-GAAP MEASURES |
||||||||
(In millions, except per share data) |
||||||||
|
Low |
High |
||||||
Net income(1) |
$ |
70.5 |
|
$ |
74.1 |
|
||
Interest expense |
|
11.6 |
|
|
11.6 |
|
||
Provision for income taxes |
|
26.8 |
|
|
28.2 |
|
||
Depreciation expense(2) |
|
6.3 |
|
|
6.3 |
|
||
Amortization of intangible assets |
|
17.9 |
|
|
17.9 |
|
||
EBITDA (non-GAAP measure) |
|
133.1 |
|
|
138.1 |
|
||
Stock-based compensation |
|
11.9 |
|
|
11.9 |
|
||
Adjusted EBITDA (non-GAAP measure) |
$ |
145.0 |
|
$ |
150.0 |
|
||
|
Low |
High |
||||||
Net income(1) |
$ |
70.5 |
|
$ |
74.1 |
|
||
Amortization of intangible assets |
|
17.9 |
|
|
17.9 |
|
||
Other |
|
(0.3 |
) |
|
(0.3 |
) |
||
Adjusted Net Income (non-GAAP measure)(3) |
$ |
88.1 |
|
$ |
91.7 |
|
||
|
|
|
||||||
Per diluted share: |
|
|
||||||
Net income |
$ |
1.39 |
|
$ |
1.46 |
|
||
Adjustments |
|
0.34 |
|
|
0.34 |
|
||
Adjusted Net Income (non-GAAP measure)(3) |
$ |
1.73 |
|
$ |
1.80 |
|
||
|
|
|
||||||
Common shares and share equivalents (diluted) |
|
50.8 |
|
|
50.8 |
|
_______ |
||
(1) |
Does not include acquisition, integration and strategic planning expenses, or excess tax benefits related to stock-based compensation. |
|
(2) |
Comprised of (i) |
|
(3) |
Does not include the "Cash Tax Savings on Indefinite-lived Intangible Assets". These savings total |
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 and Adjusted EBITDA 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.
The Senior Secured Debt leverage ratio is a ratio of the Company's Senior Secured Debt to trailing 12 months Adjusted EBITDA (gives effect to the divestiture of the Oxford business) and provides information about the Company's compliance with loan covenants.
Revenues calculated on a Same Billable Days and Constant Currency basis provide more comparable information by removing the effect of differences in the number of billable days and changes in currency exchange rates 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. To calculate revenues on Constant Currency basis, reported revenues are re-translated using foreign exchange rates from the comparable prior year period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006190/en/
Chief Financial Officer
818-878-7900
ADDO Investor Relations
310-829-5400 / kesterkin@addo.com
Source:
FAQ
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