ASGN Incorporated Reports Second Quarter 2024 Results
ASGN Incorporated reported its Q2 2024 financial results, with revenues of $1.035 billion and net income of $47.2 million. The company's Adjusted EBITDA was $117.1 million, representing 11.3% of revenues. IT consulting revenues accounted for 57.1% of total revenues, up from 53.1% a year ago. The Commercial Segment saw a 10.6% year-over-year decline, while the Federal Government Segment decreased by 3.3%. Despite cautious client spending, ASGN remains focused on higher-value IT consulting solutions. The company repurchased 1.1 million shares for $108.0 million and provided financial estimates for Q3 2024, projecting revenues between $1.024 billion and $1.044 billion.
ASGN Incorporated ha riportato i risultati finanziari del secondo trimestre 2024, con ricavi di 1,035 miliardi di dollari e un reddito netto di 47,2 milioni di dollari. L'EBITDA rettificato dell'azienda è stato di 117,1 milioni di dollari, pari all'11,3% dei ricavi. I ricavi dalla consulenza IT hanno rappresentato il 57,1% del totale, in aumento rispetto al 53,1% dell'anno scorso. Il segmento commerciale ha visto un calo del 10,6% rispetto all'anno precedente, mentre il segmento del governo federale è diminuito del 3,3%. Nonostante la cautela nelle spese dei clienti, ASGN rimane concentrata su soluzioni di consulenza IT di maggior valore. L'azienda ha riacquistato 1,1 milioni di azioni per 108,0 milioni di dollari e ha fornito stime finanziarie per il terzo trimestre 2024, prevedendo ricavi tra 1,024 miliardi e 1,044 miliardi di dollari.
ASGN Incorporated informó sus resultados financieros del segundo trimestre de 2024, con ingresos de 1.035 millones de dólares y una ganancia neta de 47.2 millones de dólares. El EBITDA ajustado de la compañía fue de 117.1 millones de dólares, representando el 11.3% de los ingresos. Los ingresos de consultoría de TI representaron el 57.1% del total, un aumento con respecto al 53.1% del año pasado. El segmento comercial experimentó una disminución del 10.6% interanual, mientras que el segmento del gobierno federal disminuyó un 3.3%. A pesar del gasto cauteloso de los clientes, ASGN sigue enfocándose en soluciones de consultoría de TI de mayor valor. La empresa recompró 1.1 millones de acciones por 108.0 millones de dólares y proporcionó estimaciones financieras para el tercer trimestre de 2024, proyectando ingresos entre 1.024 millones y 1.044 millones de dólares.
ASGN Incorporated는 2024년 2분기 재무 결과를 보고하며, 수익은 10억 3천5백만 달러이며 순이익은 4천7백20만 달러로 나타났습니다. 회사의 조정된 EBITDA는 1억 1천7백10만 달러로 수익의 11.3%를 차지합니다. IT 컨설팅 수익은 전체 수익의 57.1%를 차지하며, 지난해 53.1%에서 증가했습니다. 상업 부문은 전년 대비 10.6% 감소하였고, 연방 정부 부문은 3.3% 감소했습니다. 고객의 신중한 지출에도 불구하고 ASGN은 보다 가치가 높은 IT 컨설팅 솔루션에 집중하고 있습니다. 회사는 1.1백만 주를 1억 8천만 달러에 재구매했으며, 2024년 3분기에 대한 재무 예측을 제공하며 수익을 10억 2천4백만에서 10억 4천4백만 달러 사이로 전망합니다.
ASGN Incorporated a publié ses résultats financiers pour le deuxième trimestre de 2024, avec des revenus de 1,035 milliard de dollars et un revenu net de 47,2 millions de dollars. L'EBITDA ajusté de l'entreprise était de 117,1 millions de dollars, représentant 11,3 % des revenus. Les revenus de la consultation IT représentaient 57,1 % du total, en hausse par rapport à 53,1 % l'année précédente. Le segment commercial a connu une baisse de 10,6 % d'une année sur l'autre, tandis que le segment du gouvernement fédéral a diminué de 3,3 %. Malgré des dépenses prudentes de la part des clients, ASGN reste concentrée sur des solutions de consultation IT de plus grande valeur. L'entreprise a racheté 1,1 million d'actions pour 108,0 millions de dollars et a fourni des estimations financières pour le troisième trimestre 2024, projetant des revenus entre 1,024 milliard et 1,044 milliard de dollars.
ASGN Incorporated hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, mit Einnahmen von 1,035 Milliarden Dollar und einem Nettogewinn von 47,2 Millionen Dollar. Das bereinigte EBITDA des Unternehmens betrug 117,1 Millionen Dollar, was 11,3% der Einnahmen entspricht. Die Einnahmen aus IT-Beratung machten 57,1% der Gesamteinnahmen aus, ein Anstieg von 53,1% im Vergleich zum Vorjahr. Das kommerzielle Segment verzeichnete einen Rückgang von 10,6% im Jahresvergleich, während das Segment der Bundesregierung um 3,3% fiel. Trotz vorsichtiger Ausgaben der Kunden bleibt ASGN auf höherwertige IT-Beratungslösungen fokussiert. Das Unternehmen hat 1,1 Millionen Aktien für 108,0 Millionen Dollar zurückgekauft und hat Finanzprognosen für das dritte Quartal 2024 bereitgestellt, mit prognostizierten Einnahmen zwischen 1,024 Milliarden und 1,044 Milliarden Dollar.
- Adjusted EBITDA margin of 11.3% was at the top end of expectations
- IT consulting revenues increased to 57.1% of total revenues, up from 53.1% a year ago
- Commercial Segment new bookings for TTM were $1.3 billion with a book-to-bill ratio of 1.2 to 1
- Gross margin expanded by 20 basis points year-over-year to 29.1%
- Strong cash flow with $90.7 million in operating cash flows and $85.4 million in Free Cash Flow
- Consolidated revenues decreased by 8.5% year-over-year to $1.035 billion
- Commercial Segment revenues declined by 10.6% year-over-year
- Federal Government Segment revenues decreased by 3.3% year-over-year
- Net income decreased to $47.2 million from $60.1 million in Q2 2023
- Adjusted EBITDA margin decreased to 11.3% from 12.0% in Q2 2023
Insights
ASGN's Q2 2024 results present a mixed picture. While revenues declined
Key points to consider:
- IT consulting revenues now comprise
57.1% of total revenues, up from53.1% a year ago, aligning with the company's strategic shift towards higher-value services. - The Commercial Segment's book-to-bill ratio of 1.2 suggests a healthy pipeline, though the Federal Government Segment's 0.7 ratio indicates potential future revenue pressure.
- The company's share repurchase of
$108 million shows confidence in its financial position and commitment to shareholder returns.
While macroeconomic headwinds persist, ASGN's diverse client base and focus on critical IT needs position it well for when corporate spending rebounds. However, investors should monitor the Federal Government Segment's performance and book-to-bill ratio in coming quarters.
ASGN's Q2 results reflect broader market trends in the IT services sector. The
Notable market insights:
- The stability in consulting revenues amid overall declines points to a shift in client priorities towards essential digital transformation initiatives.
- The
16.2% drop in assignment revenues highlights the vulnerability of traditional staffing models in uncertain economic conditions. - ASGN's performance across six diverse industry verticals provides a comprehensive view of IT spending trends, with variations likely reflecting sector-specific challenges and opportunities.
Looking ahead, the company's Q3 guidance suggests a cautious outlook, with revenues projected to remain relatively flat sequentially. This conservative stance aligns with broader market expectations of continued economic uncertainty in the near term. Investors should watch for signs of increased IT spending, particularly in areas like cloud migration and AI implementation, which could drive future growth for ASGN.
Adjusted EBITDA margin at the top end of guidance estimates
Highlights
-
Revenues were
$1.03 5 billion -
Net income was
$47.2 million -
Adjusted EBITDA (a non-GAAP measure) was
$117.1 million -
Operating cash flows were
$90.7 million $85.4 million -
Repurchased approximately 1.1 million shares of the Company's common stock for
$108.0 million
IT Consulting Revenues - Approximately 57.1 percent of total revenues
-
Commercial Segment - New bookings for the trailing-twelve-month period ("TTM") were
$1.3 billion -
Federal Government Segment - New contract awards for the TTM were
$949.1 million
Management Commentary
“ASGN's results for the second quarter of 2024 confirmed our expectations that macro conditions in Q2 would be consistent with the first quarter of the year,” said ASGN’s Chief Executive Officer, Ted Hanson. “Revenues were
Mr. Hanson continued, “We are making measured, strategic progress toward our goal of moving into higher-end, higher-value IT consulting solutions. IT consulting revenues totaled 57.1 percent of consolidated revenues for the second quarter, up from 53.1 percent a year ago. Our large account portfolio, across six diverse industry verticals, provides first-hand insight into our clients' investments and long-term IT roadmaps. While clients remain cautious in their spend, their IT priorities have not changed. As we position ourselves for the future, we remain committed to fostering these relationships and supporting our clients' most critical IT needs, whether that be transitioning their enterprises to the cloud or deploying innovative use cases for AI.”
Second Quarter 2024 Financial Results - Summary
|
Three Months Ended, |
||||||||||
|
June 30, |
|
March 31, |
||||||||
(In millions, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenues |
|
|
|
|
|
||||||
Commercial Segment |
$ |
725.7 |
|
|
$ |
811.3 |
|
|
$ |
731.5 |
|
Federal Government Segment |
|
309.0 |
|
|
|
319.6 |
|
|
|
317.5 |
|
|
|
1,034.7 |
|
|
|
1,130.9 |
|
|
|
1,049.0 |
|
|
|
|
|
|
|
||||||
Gross Margin |
|
|
|
|
|
||||||
Commercial Segment |
|
32.7 |
% |
|
|
32.2 |
% |
|
|
32.0 |
% |
Federal Government Segment |
|
20.6 |
% |
|
|
20.5 |
% |
|
|
19.7 |
% |
Consolidated |
|
29.1 |
% |
|
|
28.9 |
% |
|
|
28.2 |
% |
|
|
|
|
|
|
||||||
Net income |
$ |
47.2 |
|
|
$ |
60.1 |
|
|
$ |
38.1 |
|
Earnings per diluted share |
$ |
1.02 |
|
|
$ |
1.22 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
||||||
Non-GAAP Financial Measures |
|
|
|
|
|
||||||
Adjusted Net Income |
$ |
62.6 |
|
|
$ |
78.2 |
|
|
$ |
54.6 |
|
Adjusted Net Income per diluted share |
$ |
1.36 |
|
|
$ |
1.59 |
|
|
$ |
1.16 |
|
Adjusted EBITDA |
$ |
117.1 |
|
|
$ |
135.2 |
|
|
$ |
108.3 |
|
Adjusted EBITDA margin |
|
11.3 |
% |
|
|
12.0 |
% |
|
|
10.3 |
% |
__________
Definitions of non-GAAP measures and reconciliation to GAAP measurements are included in the tables that accompany this release.
Consolidated revenues for the quarter were
Total IT consulting revenues were
Gross margin for the second quarter of 2024 was 29.1 percent, an expansion of 20 basis points from the second quarter of 2023. Gross margin for the Commercial Segment was up 50 basis points, reflecting a higher mix of consulting revenues as well as margin expansion for both consulting and assignment revenues. Gross margin for the Federal Government Segment was up 10 basis points.
Selling, general, and administrative (“SG&A”) expenses were
Net income was
Adjusted EBITDA (a non-GAAP measure) was
Capital Resources and Capital Allocation
At June 30, 2024, the Company had:
-
Cash and cash equivalents of
$132.2 million -
Full availability under its
$500.0 million -
Senior Secured Debt of
$496.3 million -
Senior unsecured notes totaling
$550.0 million
In the second quarter of 2024 the Company repurchased 1.1 million shares of its common stock for
Third Quarter 2024 Financial Estimates
The Company's financial estimates for the third 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 |
|
$ |
1,024.0 |
|
|
$ |
1,044.0 |
|
SG&A expenses(1) |
|
|
202.4 |
|
|
|
205.2 |
|
Amortization of intangible assets |
|
|
14.0 |
|
|
|
14.0 |
|
Net income |
|
|
45.8 |
|
|
|
49.4 |
|
|
|
|
|
|
||||
Earnings per diluted share |
|
$ |
1.01 |
|
|
$ |
1.09 |
|
Gross margin |
|
|
28.9 |
% |
|
|
29.1 |
% |
Effective tax rate(2) |
|
|
28.0 |
% |
|
|
28.0 |
% |
|
|
|
|
|
||||
Non-GAAP Financial Measures: |
|
|
|
|
||||
Adjusted EBITDA |
|
$ |
114.0 |
|
|
$ |
119.0 |
|
Adjusted Net Income(3) |
|
$ |
59.1 |
|
|
$ |
62.7 |
|
Adjusted Net Income per diluted share(3) |
|
$ |
1.31 |
|
|
$ |
1.39 |
|
Adjusted EBITDA margin |
|
|
11.1 |
% |
|
|
11.4 |
% |
___________ |
||
(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 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 63.5 Billable Days in the third quarter of 2024, which is one more day than the year ago period, and the same number of days as Q2 2024.
Conference Call
The Company will hold a conference call today at 4:30 p.m. ET to review its financial results for the second quarter of 2024 and to provide third quarter 2024 estimates. The dial-in number is 877-407-0792 (+1-201-689-8263 outside
A replay of the conference call will be available beginning today at 7:30 p.m. ET until August 7, 2024. The access number for the replay is 844-512-2921 (+1-412-317-6671 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 internal employees, the availability of qualified billable professionals, management of our growth, continued performance and improvement of our enterprise-wide information systems, our ability to successfully adapt to, integrate, and leverage new and developing technologies, including generative artificial intelligence, 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, 2023 as filed with the SEC on February 23, 2024. 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 |
|
Six Months Ended June 30, |
||||||||||||||||
June 30, |
|
March 31, |
|
||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Results of Operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
1,034.7 |
|
|
$ |
1,130.9 |
|
|
$ |
1,049.0 |
|
|
$ |
2,083.7 |
|
|
$ |
2,259.7 |
|
Costs of services |
|
733.6 |
|
|
|
804.6 |
|
|
|
752.8 |
|
|
|
1,486.4 |
|
|
|
1,607.0 |
|
Gross profit |
|
301.1 |
|
|
|
326.3 |
|
|
|
296.2 |
|
|
|
597.3 |
|
|
|
652.7 |
|
Selling, general, and administrative expenses |
|
205.6 |
|
|
|
210.5 |
|
|
|
210.2 |
|
|
|
415.8 |
|
|
|
434.6 |
|
Amortization of intangible assets |
|
15.1 |
|
|
|
17.9 |
|
|
|
15.1 |
|
|
|
30.2 |
|
|
|
36.0 |
|
Operating income |
|
80.4 |
|
|
|
97.9 |
|
|
|
70.9 |
|
|
|
151.3 |
|
|
|
182.1 |
|
Interest expense |
|
(15.8 |
) |
|
|
(15.8 |
) |
|
|
(17.6 |
) |
|
|
(33.4 |
) |
|
|
(31.2 |
) |
Income before income taxes |
|
64.6 |
|
|
|
82.1 |
|
|
|
53.3 |
|
|
|
117.9 |
|
|
|
150.9 |
|
Provision for income taxes |
|
17.4 |
|
|
|
22.0 |
|
|
|
15.2 |
|
|
|
32.6 |
|
|
|
41.3 |
|
Net income |
$ |
47.2 |
|
|
$ |
60.1 |
|
|
$ |
38.1 |
|
|
$ |
85.3 |
|
|
$ |
109.6 |
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
1.03 |
|
|
$ |
1.23 |
|
|
$ |
0.82 |
|
|
$ |
1.85 |
|
|
$ |
2.23 |
|
Diluted |
$ |
1.02 |
|
|
$ |
1.22 |
|
|
$ |
0.81 |
|
|
$ |
1.83 |
|
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of shares and share equivalents used to calculate earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
45.7 |
|
|
|
49.0 |
|
|
|
46.5 |
|
|
|
46.1 |
|
|
|
49.1 |
|
Diluted |
|
46.1 |
|
|
|
49.2 |
|
|
|
46.9 |
|
|
|
46.5 |
|
|
|
49.5 |
|
CONSOLIDATED SELECTED FINANCIAL DATA (Continued) (Unaudited) (In millions) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||||||
|
June 30, |
|
March 31, |
|
|||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Summary Statements of Cash Flow Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating activities |
$ |
90.7 |
|
|
$ |
112.5 |
|
|
$ |
73.3 |
|
|
$ |
164.0 |
|
|
$ |
193.0 |
|
Cash used in investing activities |
|
(5.2 |
) |
|
|
(11.2 |
) |
|
|
(10.8 |
) |
|
|
(16.0 |
) |
|
|
(23.5 |
) |
Cash used in financing activities |
|
(110.7 |
) |
|
|
(72.6 |
) |
|
|
(80.0 |
) |
|
|
(190.7 |
) |
|
|
(146.0 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of GAAP to Non-GAAP Measure: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating activities |
$ |
90.7 |
|
|
$ |
112.5 |
|
|
$ |
73.3 |
|
|
$ |
164.0 |
|
|
$ |
193.0 |
|
Capital expenditures |
|
(5.3 |
) |
|
|
(11.2 |
) |
|
|
(10.8 |
) |
|
|
(16.1 |
) |
|
|
(22.9 |
) |
Free Cash Flow (non-GAAP measure) |
$ |
85.4 |
|
|
$ |
101.3 |
|
|
$ |
62.5 |
|
|
$ |
147.9 |
|
|
$ |
170.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
June 30, |
|
December 31, |
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
||||||
Summary Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
132.2 |
|
|
$ |
175.9 |
|
|
|
|
|
|
|
||||||
Working capital |
|
523.8 |
|
|
|
579.2 |
|
|
|
|
|
|
|
||||||
Goodwill and intangible assets, net |
|
2,361.4 |
|
|
|
2,392.0 |
|
|
|
|
|
|
|
||||||
Total assets |
|
3,450.8 |
|
|
|
3,544.6 |
|
|
|
|
|
|
|
||||||
Long-term debt |
|
1,035.4 |
|
|
|
1,036.6 |
|
|
|
|
|
|
|
||||||
Total liabilities |
|
1,642.9 |
|
|
|
1,652.5 |
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
|
1,807.9 |
|
|
|
1,892.1 |
|
|
|
|
|
|
|
||||||
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited) (In millions, except per share data) |
||||||||||||||
|
Three Months Ended |
|
Six Months Ended
|
|||||||||||
|
June 30, |
|
March 31, |
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|||||
Net income |
$ |
47.2 |
|
$ |
60.1 |
|
|
38.1 |
|
$ |
85.3 |
|
$ |
109.6 |
Interest expense |
|
15.8 |
|
|
15.8 |
|
|
17.6 |
|
|
33.4 |
|
|
31.2 |
Provision for income taxes |
|
17.4 |
|
|
22.0 |
|
|
15.2 |
|
|
32.6 |
|
|
41.3 |
Depreciation and other amortization(1) |
|
9.4 |
|
|
7.0 |
|
|
9.4 |
|
|
18.8 |
|
|
13.8 |
Amortization of intangible assets |
|
15.1 |
|
|
17.9 |
|
|
15.1 |
|
|
30.2 |
|
|
36.0 |
EBITDA (non-GAAP measure) |
|
104.9 |
|
|
122.8 |
|
|
95.4 |
|
|
200.3 |
|
|
231.9 |
Stock-based compensation |
|
11.0 |
|
|
11.3 |
|
|
11.7 |
|
|
22.7 |
|
|
23.4 |
Acquisition, integration, and strategic planning expenses |
|
1.2 |
|
|
1.1 |
|
|
1.2 |
|
|
2.4 |
|
|
3.4 |
Adjusted EBITDA (non-GAAP measure) |
$ |
117.1 |
|
$ |
135.2 |
|
$ |
108.3 |
|
$ |
225.4 |
|
$ |
258.7 |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
Net income |
$ |
47.2 |
|
|
$ |
60.1 |
|
|
$ |
38.1 |
|
|
$ |
85.3 |
|
|
$ |
109.6 |
|
Credit facility amendment expenses |
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
1.5 |
|
|
|
— |
|
Acquisition, integration, and strategic planning expenses |
|
1.2 |
|
|
|
1.1 |
|
|
|
1.2 |
|
|
|
2.4 |
|
|
|
3.4 |
|
Tax effect on adjustments |
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.7 |
) |
|
|
(1.0 |
) |
|
|
(0.9 |
) |
Non-GAAP net income |
|
48.1 |
|
|
|
60.9 |
|
|
|
40.1 |
|
|
|
88.2 |
|
|
|
112.1 |
|
Amortization of intangible assets |
|
15.1 |
|
|
|
17.9 |
|
|
|
15.1 |
|
|
|
30.2 |
|
|
|
36.0 |
|
Other |
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
(1.2 |
) |
|
|
(1.2 |
) |
Adjusted Net Income (non-GAAP measure)(2) |
$ |
62.6 |
|
|
$ |
78.2 |
|
|
$ |
54.6 |
|
|
$ |
117.2 |
|
|
$ |
146.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per diluted share: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
1.02 |
|
|
$ |
1.22 |
|
|
$ |
0.81 |
|
|
$ |
1.83 |
|
|
$ |
2.21 |
|
Adjustments |
|
0.34 |
|
|
|
0.37 |
|
|
|
0.35 |
|
|
|
0.69 |
|
|
|
0.76 |
|
Adjusted Net Income (non-GAAP measure)(2) |
$ |
1.36 |
|
|
$ |
1.59 |
|
|
$ |
1.16 |
|
|
$ |
2.52 |
|
|
$ |
2.97 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares and share equivalents (diluted) |
|
46.1 |
|
|
|
49.2 |
|
|
|
46.9 |
|
|
|
46.5 |
|
|
|
49.5 |
|
___________ |
||
(1) |
The three months and six months ended June 30, 2024, include |
|
(2) |
Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets,” which currently total approximately |
|
FINANCIAL ESTIMATES FOR THE THIRD QUARTER OF 2024 RECONCILIATIONS OF ESTIMATED GAAP TO NON-GAAP MEASURES (In millions, except per share data) |
|||||||
|
|
Low |
|
High |
|
||
Net income(1) |
|
$ |
45.8 |
|
$ |
49.4 |
|
Interest expense |
|
|
16.1 |
|
|
16.1 |
|
Provision for income taxes |
|
|
17.7 |
|
|
19.1 |
|
Depreciation and other amortization(2) |
|
|
9.5 |
|
|
9.5 |
|
Amortization of intangible assets |
|
|
14.0 |
|
|
14.0 |
|
EBITDA (non-GAAP measure) |
|
|
103.1 |
|
|
108.1 |
|
Stock-based compensation |
|
|
10.9 |
|
|
10.9 |
|
Adjusted EBITDA (non-GAAP measure) |
|
$ |
114.0 |
|
$ |
119.0 |
|
|
|
Low |
|
High |
|
||||
Net income(1) |
|
$ |
45.8 |
|
|
$ |
49.4 |
|
|
Amortization of intangible assets |
|
|
14.0 |
|
|
|
14.0 |
|
|
Other |
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
Adjusted Net Income (non-GAAP measure)(3) |
|
$ |
59.1 |
|
|
$ |
62.7 |
|
|
|
|
|
|
|
|
||||
Per diluted share: |
|
|
|
|
|
||||
Net income |
|
|
1.01 |
|
|
|
1.09 |
|
|
Adjustments |
|
|
0.30 |
|
|
|
0.30 |
|
|
Adjusted Net Income (non-GAAP measure)(3) |
|
$ |
1.31 |
|
|
$ |
1.39 |
|
|
___________ |
||
(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 include financial information 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. The book-to-bill ratio for the Commercial consulting is the ratio of bookings to revenues for a specified period.
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/20240724965878/en/
Kimberly Esterkin
Vice President, Investor Relations
kimberly.esterkin@asgn.com
Source: ASGN Incorporated
FAQ
What were ASGN's Q2 2024 revenue and net income?
How did ASGN's IT consulting revenues perform in Q2 2024?
What was ASGN's Adjusted EBITDA margin in Q2 2024?
How many shares did ASGN repurchase in Q2 2024?
What are ASGN's revenue projections for Q3 2024?
