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View All NewsOn Assignment revenue up 14% on pro forma basis
On Assignment Inc. (NYSE: ASGN) reported second-quarter revenue rose 13.7% on a pro forma basis, which assumes the acquisitions of marketing/creative staffing firm Creative Circle and a small life sciences business in Europe — both acquired in the second quarter of 2015 — occurred at the beginning of 2014. On a reported basis, second-quarter revenue rose 25.3%.
(US$ thousands) | Q2 2016 | Q2 2015 | % change |
Revenue | $608,088 | $485,323 | 25.3% |
Gross profit | $202,086 | $158,534 | 27.5% |
Gross margin | 33.2% | 32.7% | |
Net income | $26,004 | $14,252 | 82.5% |
Creative Circle’s results are included in Apex, On Assignment’s largest segment. Revenue at Apex rose 33.3% on an as reported basis, or 16.5% on a pro forma basis, and accounted for 74.6% of total revenues. Its Oxford segment rose 6.6% year over year on an as reported basis, or 6.3% on a pro forma basis, and accounted for 25.4% of total revenues.
Calabasas, Calif.-based On Assignment ranks as the 10th-largest US staffing firm. Top segments served include IT and marketing/creative.
Quote
“Once again, our scale, reach and ability to service customer needs allowed us to grow rapidly and continue to become the preferred provider of choice for IT, creative, digital and life sciences professional services to many large and sophisticated customers,” said President and CEO Peter Dameris. “We continue to believe that the important customer relationships that we have developed over the last 10 years will permit us to grow at attractive growth rates into the future.”
Revenue by segment
(US$ thousands) | Q2 2016 | Q2 2015 | % change |
Apex | $453,700 | $340,500 | 33.3% |
Oxford | $154,400 | $144,900 | 6.6% |
Gross margin by segment
Q2 2016 | Q2 2015 | |
Apex | 30.5% | 28.9% |
Oxford | 41.4% | 41.6% |
Average bill rates
Q2 2016 | Q2 2015 | |
Apex | $55.97 | $55.05 |
Oxford | $103.58 | $103.65 |
Consolidated | $62.45 | $62.54 |
Guidance
On Assignment estimates third-quarter revenue of $618.0 million to $628.0 million.
Share price and market cap
Shares in On Assignment fell 3.12% in early afternoon trading today to $39.12. The company had a market cap of $2.09 billion, according to Yahoo!