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View All NewsOn Assignment revenue up 7% on Apex division growth
Second-quarter revenue rose 7.4% at Calabasas, Calif.-based On Assignment Inc. (NYSE: ASGN). The increase was 7.6% on a same-billable-days and constant-currency basis.
Revenue rose 10.7% in its Apex division but fell 2.3% in its Oxford division, mainly attributable to revenue from two large projects that were substantially completed in 2016.
On Assignment ranks 10th on Staffing Industry Analysts’ list of largest staffing firms in the US, with top segments served including IT, marketing/creative and clinical/scientific.
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Revenue | $653,313 | $608,088 | 7.4% |
| Gross profit | $212,937 | $202,086 | 5.4% |
| Gross margin | 32.6% | 33.2% | |
| Net income | $33,097 | $26,004 | 27.3% |
Quote
“Financial performance in the quarter was driven by strong revenue growth at Apex, Creative Circle and CyberCoders,” CEO Peter said in a conference call with investors. “Revenue growth came from our local, mid-market, and large national accounts, reflecting strong customer demand. Our size and service offerings allows us to grow faster than published staffing industry growth rates and we believe that we are well positioned to generate solid above-market revenue growth in the future.”
Revenue by segment
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Apex | $502,500 | $453,700 | 10.7% |
| Oxford | $150,800 | $154,400 | -2.3% |
Permanent placement revenue
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Apex | $11,200 | $12,300 | -10.0% |
| Oxford | $22,100 | $21,400 | 3.6% |
| Consolidated | $33,300 | $33,700 | -1.4% |
Gross margin by segment
| Q2 2017 | Q2 2016 | |
| Apex | 29.9% | 30.5% |
| Oxford | 41.6% | 41.4% |
Average bill rates
| Q2 2017 | Q2 2016 | |
| Apex | $57.81 | $55.97 |
| Oxford | $100.14 | $103.58 |
| Consolidated | $63.23 | $62.45 |
Guidance
On Assignment estimates third-quarter revenue of $660.0 million to $670.0 million, an increase of 4.9% to 6.5%.
Share price and market cap
Shares in On Assignment fell 3.31% in early afternoon trading today to $50.00. The company had a market cap of $2.64 billion, according to Yahoo.