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Dec 31, 2020
ASGN Q4 2020 Earnings Report
ASGN reported strong Q4 2020 results with revenues, Adjusted EBITDA, and EPS exceeding guidance.
Key Takeaways
ASGN Incorporated reported financial results for the fourth quarter and full year ended December 31, 2020. Revenues were $1,011.4 million, slightly down from Q4 2019 but flat sequentially. Net income was $55.4 million ($1.04 per diluted share), compared to $39.3 million ($0.74 per diluted share) in Q4 2019.
Revenues reached $1,011.4 million, a slight decrease year-over-year but flat sequentially.
Net income increased to $55.4 million, or $1.04 per diluted share, compared to $39.3 million, or $0.74 per diluted share, in the fourth quarter of 2019.
Adjusted EBITDA was $116.3 million, representing 11.5 percent of revenues, compared to $116.2 million, or 11.3 percent of revenues, in the fourth quarter of 2019.
Free cash flow was $82.7 million, accounting for 71.1 percent of Adjusted EBITDA.
ASGN
ASGN
ASGN Revenue by Segment
Revenue by Segment
Assignment Revenues Revenue
CapyFin.com Forward Guidance
The Company is providing financial estimates for the first quarter of 2021, which are based on recent operating trends in the business and assume no significant deterioration in the markets ASGN serves.
Positive Outlook
- Revenues between $1,000.0 million and $1,020.0 million
- Net income between $42.6 million and $46.2 million
- Earnings per diluted share between $0.80 and $0.86
- Adjusted EBITDA between $101.0 million and $106.0 million
- Adjusted Net Income between $56.3 million and $59.9 million
Challenges Ahead
- SG&A expenses between $190.3 million and $192.8 million
- Amortization of intangible assets of $14.1 million
- Gross margin between 27.2% and 27.4%
- Effective tax rate of 27.0%
- Payroll tax reset, which occurs at the beginning of each year