Daily News
View All NewsASGN revenue rises 10% on a pro forma basis
Revenue at ASGN Inc. (NYSE: ASGN) rose 10.1% on a pro forma basis in the second quarter. The pro forma calculation includes revenue from the company’s acquisition of ECS Federal LLC, a government services contractor, in April of this year as if the companies were combined at the beginning of 2017. Revenue rose 34.5% on a non pro forma basis.
Calabasas, Calif.-based ASGN reported revenue in its Apex segment rose 13.0%, and revenue in its Oxford segment rose 3.3%.
Gross margin narrowed, primarily due to the inclusion of ECS, which has lower margins than ASGN’s other segments, according to the company. On a pro forma basis, gross margin was 30.0% compared with 30.3% in the year-ago quarter.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue | $878,509 | $653,313 | 34.5% |
| Gross profit | $263,846 | $212,937 | 23.9% |
| Gross margin | 30.0% | 32.6% | |
| Net income | $33,561 | $33,097 | 1.4% |
ASGN ranks among the largest US staffing firms, and provides staffing IT, creative/digital, engineering and life sciences.
Quote
“The US economy is performing well and across our customer base of commercial and government organizations, we are seeing investment in advancing their businesses and services,” CEO Peter Dameris said.
Revenue by segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Apex | $567,600 | $502,500 | 13.0% |
| Oxford | $155,800 | $150,800 | 3.3% |
| ECS | $155,100 | -- | -- |
Permanent placement revenue
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Apex | $13,900 | $11,200 | 24.1% |
| Oxford | $25,500 | $22,100 | 15.4% |
Gross margin by segment
| Q2 2018 | Q2 2017 | |
| Apex | 29.9% | 29.9% |
| Oxford | 42.0% | 41.6% |
| ECS | 18.5% | - |
Average bill rates
| Q2 2018 | Q2 2017 | |
| Apex | $59.53 | $57.81 |
| Oxford | $101.51 | $100.14 |
Guidance
ASGN forecast third-quarter revenue to grow between 8.3% and 9.5% on a pro forma basis — assuming the acquisition of ECS occurred at the beginning of 2017.
Share price and market cap
Shares in ASGN rose 5.79% to $91.78 as of 1:44 p.m. Eastern time today. The company had a market cap of approximately $4.8 billion.