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On Assignment beats esitmates in 3Q08

October 30 2008

Professional staffing firm On Assignment Inc. (NASD:ASGN) reported revenue of $161.9 million for the quarter ended Sept. 30. Revenue was up 8.9% from the third quarter of 2007.

The company chalked up net income of $6.9 million for the quarter, up 113% from the same period in 2007. Net income for the quarter included a non-cash gain of $503,000, or $0.01 per share, on the company's $73 million interest rate swap. This mark-to-market adjustment was not included in the company's estimates and compares with a loss of $915,000, or $0.01 per share, in the same period last year.

Gross margin was 32.6%, up from 32.0% in the third quarter of 2007.

On Assignment's  healthcare segment revenue, which includes nurse travel and allied healthcare lines of business, was $48.0 million, up 7.8% from $44.5 million in the same period of 2007. Nurse travel revenue of $33.4 million was up 8.5% from $30.8 million in the same period of 2007. Allied healthcare revenue of $14.6 million was up 6.2% from $13.7 million in the same period of 2007. The physician segment had revenue of $23.6 million, an increase of 23.4% over $19.1 million in the same period of 2007.

The company's IT and engineering segment revenue was $56.4 million, an increase of 11.5% over $50.6 million in the same period of 2007. The life sciences segment revenue was $33.9 million, down 1.4% from $34.4 million in the same period of 2007.

Looking ahead, the company is projecting fourth quarter revenue in the range of $152.0 million to $156.5 million. Compared to the fourth quarter of 2007, this range is flat to up  3%.

On Assignment Inc. (NASD: ASGN)
For the quarter ended Sept. 30, 2008,
compared with the same period in 2007
Revenue: $161.9 million, 8.9%
Net income: $6.9 million, 113%

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