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Mar 31, 2022

ASGN Q1 2022 Earnings Report

Financial results exceeded previously-announced guidance estimates.

Key Takeaways

ASGN Incorporated reported a strong start to 2022, with revenues and Adjusted EBITDA for the first quarter exceeding the high end of guidance ranges. Revenues improved 20.3 percent year-over-year, while Adjusted EBITDA increased 39.1 percent compared to the prior-year period, setting a new record for the first quarter.

Revenues were $1.1 billion, up 20.3 percent over the first quarter of 2021.

Income from continuing operations was $67.6 million, up 57.9 percent over the first quarter of 2021.

Net income was $66.8 million, up 37.2 percent over the first quarter of 2021.

Adjusted EBITDA from continuing operations was $134.8 million, up from $96.9 million.

Total Revenue
$1.09B
Previous year: $1.03B
+6.3%
EPS
$1.57
Previous year: $1.15
+36.5%
Gross Profit
$327M
Previous year: $281M
+16.2%
Cash and Equivalents
$502M
Previous year: $387M
+30.0%
Free Cash Flow
$46.4M
Previous year: $111M
-58.0%
Total Assets
$3.49B
Previous year: $3.33B
+4.7%

ASGN

ASGN

ASGN Revenue by Segment

Forward Guidance

The Company's financial estimates for the second quarter of 2022 are based on current operating trends and assume no significant deterioration in the markets ASGN serves.

Positive Outlook

  • Revenues between $1,108.0 million and $1,128.0 million
  • Net income between $68.3 million and $71.9 million
  • Earnings per share - Diluted: $1.31 and $1.38
  • Adjusted EBITDA between $135.0 million and $140.0 million
  • Adjusted Net Income between $81.5 million and $85.1 million

Challenges Ahead

  • SG&A expenses between $209.7 million and $212.8 million
  • Amortization of intangible assets of $13.5 million
  • Gross margin between 29.5% and 29.7%
  • Effective tax rate of 27.2%
  • Adjusted EBITDA Margin between 12.2% and 12.4%