Daily News

View All News

On Assignment revenue rises 16%

April 24, 2014

On Assignment Inc. (NYSE: ASGN) reported revenue rose 15.9 percent in the first quarter to $439.3 million. On a pro forma basis — assuming the company’s December acquisitions of Whitaker Medical LLC and CyberCoders Holdings Inc. occurred at the beginning of 2013 — revenue rose 9.8 percent.

“We reported strong financial results for the quarter despite the effects of the inclement weather,” said President and CEO Peter Dameris. “Our IT segments continue to report strong performance led by our Apex Segment, which grew 16 percent year-over-year. Demand for our IT services continues to be robust and we are well positioned to expand our market share.”

The Calabasas, Calif.-based company’s largest business segment, IT staffing provider Apex, posted a 16.1 percent increase in first-quarter revenue to $278.4 million. Apex now includes Lab Support US.

On Assignment’s other IT segment, Oxford, is the company’s second-largest business segment and posted a 14.4 percent increase in first-quarter revenue to $117.5 million. Oxford now includes the firm’s clinical research division, health information management unit and CyberCoders.

Physician staffing revenue rose 20.9 percent in the fourth quarter to $31.8 million.

The firm’s European life sciences unit is now reported in its “other” segment and posted a 12.5 percent revenue increase to $11.6 million.

On Assignment’s first-quarter gross margin improved to 31.3 percent from 29.0 percent in the year-ago quarter. The company attributed the year-over-year expansion in gross margin to a higher mix of permanent placement revenues — 4.6 percent of revenues for the quarter compared with 1.9 percent in the first quarter of 2013 — and slightly higher contract margins. The higher mix of permanent placement revenues in the quarter was attributable to the inclusion of CyberCoders, which accounted for $13.3 million of the $20.3 million in permanent placement revenues.

Net income fell 43.5 percent to $13.9 million in the first quarter from $24.6 million in the first quarter of 2013, but net income for 2013 included a $14.4 million gain on the sale of the company’s nurse travel division.

Shares in On Assignment were up 0.14 percent in early afternoon trading to $36.32 and On Assignment has a market cap of approximately $1.96 billion, according to Yahoo!