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Dec 31, 2019

ASGN Q4 2019 Earnings Report

ASGN reported strong Q4 2019 results, with revenues up 10.3% year-over-year and all numbers meeting or exceeding guidance.

Key Takeaways

ASGN Incorporated reported Q4 2019 financial results with revenues of $1.0 billion, a 10.3% increase year-over-year. Net income was $39.3 million, and adjusted EBITDA was $116.2 million, up from $109.1 million in the fourth quarter of 2018.

Revenues increased by 10.3% year-over-year, reaching $1.0 billion.

Net income was $39.3 million ($0.74 per diluted share).

Adjusted Net Income was $68.3 million ($1.28 per diluted share).

Adjusted EBITDA was $116.2 million, up from $109.1 million in the fourth quarter of 2018.

Total Revenue
$1.03B
Previous year: $930M
+10.3%
EPS
$1.28
Previous year: $1.14
+12.3%
ECS Book-to-bill ratio
0.5
Gross Profit
$290M
Previous year: $272M
+6.5%
Cash and Equivalents
$95.2M
Previous year: $41.8M
+127.8%
Free Cash Flow
$71.5M
Previous year: $57.3M
+24.8%
Total Assets
$2.94B
Previous year: $2.69B
+9.4%

ASGN

ASGN

ASGN Revenue by Segment

ASGN Revenue by Geographic Location

Forward Guidance

ASGN provided financial estimates for the first quarter of 2020, expecting revenues between $990.0 million and $1.0 billion.

Positive Outlook

  • Revenues of $990.0 million to $1.0 billion
  • Gross margin of 28.1 percent to 28.4 percent
  • Net income of $42.3 million to $45.9 million
  • Earnings per diluted share of $0.79 to $0.86
  • Adjusted EBITDA of $100.0 million to $105.0 million

Challenges Ahead

  • SG&A expenses (excludes amortization of intangible assets) of $196.7 million to $197.5 million (includes $8.1 million in depreciation and $9.0 million in stock-based compensation expense)
  • Amortization of intangible assets of $12.2 million
  • Interest expense of $11.3 million
  • Effective tax rate of 27.1 percent (before any excess tax benefits related to stock-based compensation)
  • Adjusted Net Income of $54.4 million to $58.1 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income