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Mar 31, 2021

ASGN Q1 2021 Earnings Report

ASGN surpassed expectations with revenues, adjusted EBITDA, and adjusted EPS ahead of guidance. Revenues exceeded $1.0 billion for the third consecutive quarter, marking the highest quarterly revenues achieved.

Key Takeaways

ASGN Incorporated reported strong first quarter 2021 results, with revenues, adjusted EBITDA, and adjusted EPS surpassing expectations. Revenues exceeded $1.0 billion for the third consecutive quarter, representing the highest quarterly revenues achieved by the Company. Commercial revenues were up slightly year-over-year after adjusting for one fewer Billable Day, while Government revenues improved significantly.

Revenues were $1,025.7 million, up 3.6 percent over the first quarter of 2020.

Net income was $48.7 million ($0.91 per diluted share), up 11.1 percent over the first quarter of 2020.

Adjusted EBITDA was $108.6 million (10.6 percent of revenues), up from $103.5 million in the first quarter of 2020.

Free Cash Flow was $110.5 million.

Total Revenue
$1.03B
Previous year: $991M
+3.6%
EPS
$1.15
Previous year: $1.08
+6.5%
Gross Profit
$281M
Previous year: $281M
+0.0%
Cash and Equivalents
$387M
Previous year: $64M
+503.9%
Free Cash Flow
$111M
Previous year: $48.8M
+126.4%
Total Assets
$3.33B
Previous year: $3.02B
+10.5%

ASGN

ASGN

Forward Guidance

The Company financial estimates for the second quarter of 2021 are based on current operating trends and assume no significant deterioration in the markets ASGN serves.

Positive Outlook

  • Revenues between $1,058.0 million and $1,078.0 million
  • Net income between $56.4 million and $60.1 million
  • Earnings per diluted share between $1.05 and $1.12
  • Adjusted EBITDA between $119.0 million and $124.0 million
  • Adjusted Net Income per diluted share between $1.27 and $1.33

Challenges Ahead

  • SG&A expenses between $200.7 million and $203.5 million
  • Amortization of intangible assets of $12.1 million
  • Diluted shares outstanding of 53.9 million
  • Gross margin between 28.3% and 28.5%
  • Effective tax rate of 27.0%