On Assignment Reports Results for Third Quarter 2013

Revenues up 15.4 percent Year-over-Year

EPS & Adjusted EBITDA above Estimates

Revenues from IT Segments up 19.1 percent Year-over-Year

Business Wire

CALABASAS, Calif.--(BUSINESS WIRE)--

On Assignment, Inc. (ASGN), a leading global provider of diversified professional staffing solutions, today reported results for the quarter ended September 30, 2013.

Third Quarter Highlights

  • Revenues were $432.2 million, up 15.4 percent year-over-year and 3.4 percent sequentially.
  • Gross margin was 30.2 percent, up from 29.8 percent in the preceding quarter.
  • Income from continuing operations was $20.2 million ($0.37 per diluted share), up from $14.7 million ($0.28 per diluted share) in the third quarter of 2012.
  • Adjusted income from continuing operations (a non-GAAP measure set forth in the table below) was $28.5 million ($0.52 per diluted share).
  • Adjusted EBITDA (a non-GAAP measure defined below) was $48.8 million, up from $43.8 million in third quarter of 2012.
  • Percentage of gross profit converted into Adjusted EBITDA was 37.4 percent, up from 35.5 percent in second quarter of 2013.
  • Leverage ratio (total indebtedness to trailing twelve months Adjusted EBITDA) was 2.16 to 1, down from 2.88 to 1 at December 31, 2012.

Commenting on the results, Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “We reported a very strong quarter. Revenues, gross margin, EPS and Adjusted EBITDA were at or above the high-end of our estimates. We continued to improve our operating leverage as evidenced by the percentage of gross profit converted into Adjusted EBITDA. Our conversion of gross profit into Adjusted EBITDA for the quarter was 37.4 percent, up from 35.5 percent in the second quarter of 2013.”

“Our strong revenue growth for the quarter was mainly driven by our IT businesses, Apex Systems and Oxford, which account for approximately 80 percent of our operations. Revenues from our IT businesses grew 19.1 percent year-over-year and 3.4 percent sequentially. In that sector of the market, we are the second largest provider of staffing services and we continue to grow faster than the overall market reflecting the benefit of our scale and operating models. We also continue to believe we are benefiting from a shift in spending toward IT staffing and away from other IT services delivery models, such as consulting and offshoring, as CIOs continue to focus sharply on project flexibility and accountability and cost control.”

“Revenues of our non-IT businesses (Life Sciences, Physician & Healthcare), which combined account for approximately 20 percent of our operations, were up 2.5 percent year-over-year and 3.4 percent sequentially. The growth of these businesses, except for the Physician segment, was in line with our estimates. The Physician business was down 4.6 percent year-over-year and below our revenue estimate for the quarter by $1.5 million, due to a less than robust hospital admissions environment. Our Life Sciences and Healthcare segments continue to improve and both reported revenue growth of 5.4 percent sequentially.”

Third Quarter 2013 Results

Revenues for the quarter were $432.2 million, up 15.4 percent year-over-year and 3.4 percent sequentially. Our Information Technology businesses (Apex Systems and Oxford), which grew 19.1 percent year-over-year and 3.4 percent sequentially, accounted for 96 percent of the revenue growth in the quarter. Our non-Information Technology segments (Life Sciences, Physician and Healthcare), were up 2.5 percent year-over-year and 3.4 percent sequentially.

Gross profit was $130.6 million, up 13.0 percent year-over-year and up 4.9 percent sequentially. This improvement was primarily due to growth in revenues. Gross margin for the quarter was 30.2 percent, down from 30.9 percent in the third quarter of 2012 and up from 29.8 percent in the second quarter of 2013. The year-over-year compression in gross margin was mainly attributable to a lower mix of permanent placement revenues (1.7 percent of revenues for the quarter compared with 2.0 percent in the third quarter of 2012), a higher mix for revenues from Apex Systems, which has a lower gross margin than the other operating segments, and higher growth of lower-margin services. The sequential expansion in gross margin was primarily due to an increase in the mix of permanent placement revenues which was 1.7 percent of revenues for the quarter, up from 1.5 percent in the second quarter of 2013.

Selling, general and administrative expenses (“SG&A”) were $88.5 million, up from $77.4 million in the third quarter of 2012. This increase due to incentive compensation related to the incremental increase in gross profit and infrastructure investments to support the growth of the business. SG&A for the quarter included a $1.0 million benefit for the reduction of an earn-out obligation (a $1.0 million reduction in an earn-out obligation was also included in the third quarter of 2012) and charges totaling $0.7 million for certain non-recurring expenses.

Amortization of intangible assets was $5.2 million, compared with $6.7 million in the third quarter of 2012.

Interest expense for the quarter was $3.3 million compared with $6.0 million in the third quarter of 2012. Interest expense for the quarter was comprised of interest on the credit facility of $3.0 million and amortization of capitalized loan costs of $0.3 million.

The effective income tax rate for the quarter was 39.9 percent compared with 42.5 percent for the third quarter of 2012. The improvement in the effective tax rate for the quarter benefited from the $1.0 million reduction in an earn-out obligation, which is not taxable and higher growth in income before income taxes than the growth in permanent book-to-tax differences.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets plus equity-based compensation expense, impairment charges, acquisition-related costs and fees and expenses of the outside consulting firm assisting with our strategic planning initiatives), was $48.8 million, up from $43.8 million for the third quarter of 2012.

Income from continuing operations was $20.2 million ($0.37 per diluted share) compared with $14.7 million ($0.28 per diluted share) for the third quarter of 2012.

Net income, which is comprised of income from continuing operations and the income (loss) from discontinued operations, was $20.2 million ($0.37 per diluted share) compared with $15.5 million ($0.29 per diluted share) in the third quarter of 2012. Net income for the quarter included (i) acquisition-related costs and strategic planning expenses of $0.5 million ($0.3 million, or $0.01 per diluted share, after tax) and (iii) a $0.1 million loss from discontinued operations.

Financial Estimates for Q4 2013

On Assignment is providing below financial estimates from continuing operations for the fourth quarter of 2013. These estimates do not include acquisition-related costs and strategic planning expenses and assume no deterioration in the staffing markets that On Assignment serves.

  • Revenues of $429 million to $433 million
  • Gross Margin of 29.8 percent to 30.1 percent
  • SG&A (excludes amortization of intangible assets) of $90.0 to $91.0 million (includes $2.4 million in depreciation and $3.9 million in equity-based compensation expense)
  • Amortization of intangible assets of $5.2 million
  • Adjusted EBITDA of $44 million to $46 million
  • Effective tax rate of 41.5 percent
  • Adjusted Income from Continuing Operations of $25.1 million to $26.3 million
  • Adjusted Income from Continuing Operations per diluted share of $0.46 to $0.48
  • Income from Continuing Operations of $17.1 million to $18.3 million
  • Income from Continuing Operations per diluted share of $0.31 to $0.33
  • Diluted shares outstanding of 54.7 million

These estimates reflect normal seasonality in the business. The estimates assume year-over-year revenue growth of approximately mid-to high teens for IT segments (Apex Systems and Oxford), mid-single digit for Life Sciences, low single digit decline for Physician Staffing and modest growth in Allied Healthcare. The above estimates assume billable days of 61.4 for the quarter, which are 2.3 fewer days than the preceding quarter. The fewer billable days in the fourth quarter results in a sequential decrease in revenues of approximately $15.6 million based on the average revenues per billable day in the third quarter of 2013.

Conference Call

On Assignment will hold a conference call today at 4:30 p.m. EDT to review its third quarter financial results. The dial-in number is 800-230-1766 (+1-612-332-0107 for callers outside the United States) and the conference ID number is 305264. Participants should dial in ten minutes before the call. A replay of the conference call will be available beginning today at 7:30 p.m. EDT and ending at midnight EST on Friday, November 22, 2013. The access number for the replay is 800-475-6701 (+1-320-365-3844 for callers outside the United States) and the conference ID number 305264.

This call is being webcast by Thomson/CCBN and can be accessed via On Assignment's web site at www.onassignment.com. Individual investors can also listen at Thomson/CCBN's site at www.fulldisclosure.com or by visiting any of the investor sites in Thomson/CCBN's Individual Investor Network.

About On Assignment

On Assignment, Inc. (ASGN), is a leading global provider of in-demand, skilled professionals in the growing technology, healthcare and life sciences sectors, where quality people are the key to success. The Company goes beyond matching résumés with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. Clients recognize On Assignment for their quality candidates, quick response, and successful assignments. Professionals think of On Assignment as career-building partners with the depth and breadth of experience to help them reach their goals.

On Assignment was founded in 1985 and went public in 1992. The Company, which is headquartered in Calabasas, California, operates through a network of approximately 130 branch offices throughout the United States, Canada, United Kingdom, Netherlands, Ireland and Belgium. Additionally, physician placements are made in Australia and New Zealand. To learn more, visit http://www.onassignment.com.

Reasons for Presentation of Non-GAAP Financial Measures

Statements in this release and the Supplemental Financial Information accompanying include non-GAAP financial measures. Such information is provided as additional information, not as an alternative to our consolidated financial statements presented in accordance with GAAP, and is intended to enhance an overall understanding of our current financial performance. The Supplemental Financial Information sets forth financial measures reviewed by our management to evaluate our operating performance. Such measures also are used to determine a portion of the compensation for some of our executives and employees. We believe the non-GAAP financial measures provide useful information to management, investors and prospective investors by excluding certain charges and other amounts that we believe are not indicative of our core operating results. These non-GAAP measures are included to provide management, our investors and prospective investors with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between quarters. One of the non-GAAP financial measures presented is EBITDA (earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets), other terms include Adjusted EBITDA (EBITDA plus equity-based compensation expense, impairment charges, write-off of loan fees, acquisition related costs and strategic planning costs) and Non-GAAP Income from Continuing Operations (Income from continuing operations, plus acquisition related expenses, deferred financing fees written-off and strategic planning costs, net of tax) and Adjusted Income from Continuing Operations and related per share amounts. These terms might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. The financial statement tables that accompany this press release include reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Safe Harbor

Certain statements made in this news release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements include statements regarding the Company's anticipated financial and operating performance in 2013. All statements in this release, other than those setting forth strictly historical information, are forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results might differ materially. In particular, the Company makes no assurances that the estimates of revenues, gross margin, SG&A, Adjusted EBITDA, income from continuing operations, adjusted income from continuing operations, earnings per share or earnings per diluted share set forth above will be achieved. Factors that could cause or contribute to such differences include actual demand for our services, our ability to attract, train and retain qualified staffing consultants, our ability to remain competitive in obtaining and retaining temporary staffing clients, the availability of qualified temporary professionals, management of our growth, continued performance of our enterprise-wide information systems, and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 18, 2013, our report on Form 8-K filed with the SEC on June 13, 2013, and our Forms 10-Q for the quarterly periods ended March 31, 2013 and June 30, 2013 as filed with the SEC on May 9, 2013 and August 2, 2013, respectively. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except per share amounts)

 
Three Months Ended   Nine Months Ended
September 30,   June 30, September 30,
2013  

2012(1)

 

2013 2013  

2012(1)

 

 
Revenues $ 432,171 $ 374,511 $ 417,923 $ 1,239,287 $ 797,134
Cost of services 301,555   258,880   293,356   870,830   544,217  
Gross profit 130,616 115,631 124,567 368,457 252,917
Selling, general and administrative expenses 88,529 77,424 86,454 259,144 185,342
Amortization of intangible assets 5,199   6,679   5,275   15,853   11,197  
Operating income 36,888 31,528 32,838 93,460 56,378
Interest expense, net (3,257 ) (6,022 ) (4,198 ) (12,786 ) (10,680 )
Write-off of loan costs     (14,958 ) (14,958 ) (813 )  
Income before income taxes 33,631 25,506 13,682 65,716 44,885
Provision for income taxes 13,422   10,850   5,860   27,075   19,105  
Income from continuing operations 20,209 14,656 7,822 38,641 25,780
Gain on sale of discontinued operations, net of tax 14,412
Income (loss) from discontinued operations, net of tax (59 ) 847   (483 ) (951 ) 2,668  
Net income $ 20,150   $ 15,503   $ 7,339   $ 52,102   $ 28,448  
 
Basic earnings per common share:
Income from continuing operations $ 0.38 $ 0.28 $ 0.15 $ 0.72 $ 0.58
Income (loss) from discontinued operations   0.02   (0.01 ) 0.26   0.06  
$ 0.38   $ 0.30   $ 0.14   $ 0.98   $ 0.64  
 
Diluted earnings per common share:
Income from continuing operations $ 0.37 $ 0.28 $ 0.14 $ 0.71 $ 0.56
Income from discontinued operations   0.01     0.25   0.06  
$ 0.37   $ 0.29   $ 0.14   $ 0.96   $ 0.62  
 
Number of shares and share equivalents used to calculate earnings per share:
Basic 53,620   52,131   53,378   53,350   44,777  
Diluted 54,624   53,162   54,327   54,394   45,807  
 

(1)Amounts differ from the previously reported numbers on our Form 10-Q for the period ended September 30, 2012, due to the retrospective adjustment of amortization of the identifiable intangible assets of Apex purchase price allocation, and the retrospective presentation of discontinued operations related to the sale of Nurse Travel during 2013.

 

SUPPLEMENTAL SEGMENT FINANCIAL INFORMATION (Unaudited)

(In thousands)

 
  Three Months Ended Nine Months Ended
  September 30,   June 30,   September 30,
  2013     2012   2013   2013     2012
Revenues:
Technology –
Apex $ 246,369 $ 202,664 $ 233,446 $ 692,543 $ 301,167
Oxford   100,005   88,104   101,474   296,741   254,970
346,374 290,768 334,920 989,284 556,137
 
Life Sciences 44,124 40,646 41,877 126,474 122,506
Physician 26,223 27,479 26,466 78,991 76,607
Healthcare   15,450   15,618   14,660   44,538   41,884
$ 432,171 $ 374,511 $ 417,923 $ 1,239,287 $ 797,134
 
Gross profit:
Technology –
Apex $ 69,448 $ 56,934 $ 63,896 $ 188,963 $ 83,917
Oxford   34,660   31,250   34,506   101,316   90,266
104,108 88,184 98,402 290,279 174,183
 
Life Sciences 14,306 14,002 13,838 41,528 41,649
Physician 7,382 8,370 7,640 22,505 23,587
Healthcare   4,820   5,075   4,687   14,145   13,498
$ 130,616 $ 115,631 $ 124,567 $ 368,457 $ 252,917
 

SELECTED CASH FLOW INFORMATION (Unaudited)

(In thousands)

   
  Three Months Ended Nine Months Ended
  September 30,   June 30,   September 30,
  2013     2012   2013   2013     2012
Cash (used in) provided by operations $ 43,621 $ 23,531 $ 26,752 $ 73,948 $ 14,639
Capital expenditures $ 4,965 $ 3,712 $ 4,543 $ 12,293 $ 10,883
 

SELECTED CONSOLIDATED BALANCE SHEET DATA (Unaudited)

(In thousands)

 
September 30, June 30,
2013 2013
Cash and cash equivalents $ 45,077 $ 14,111
Accounts receivable, net 267,231 266,567
Goodwill and intangible assets, net 744,622 748,744
Total assets 1,118,482 1,089,033
Current portion of long-term debt 10,000 10,250
Total current liabilities 139,065 127,077
Working capital 193,256 174,844
Long-term debt 347,813 359,063
Other long-term liabilities 28,598 28,694
Stockholders’ equity 603,006 574,199
 

RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS AND EARNINGS PER SHARE
TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA PER DILUTED SHARE
(Unaudited)

(In thousands, except per share amounts)

 
Three Months Ended
September 30,  
2013  

2012(1)

 

June 30, 2013
Net income $ 20,150   $ 0.37 $ 15,503     $ 0.29 $ 7,339   $ 0.14
Income (loss) from discontinued operations, net of tax (59 )   847   0.01   (483 )
Income from continuing operations 20,209 0.37 14,656 0.28 7,822 0.14
Interest expense, net 3,257 0.05 6,022 0.11 4,198 0.08
Write-off of loan costs 14,958 0.27
Provision for income taxes 13,422 0.25 10,850 0.20 5,860 0.11
Depreciation 2,026 0.04 1,796 0.03 1,914 0.04
Amortization of intangibles 5,199   0.10   6,679   0.13   5,275   0.10
EBITDA 44,113 0.81 40,003 0.75 40,027 0.74
Equity-based compensation 4,201 0.08 3,059 0.06 3,486 0.06
Acquisition-related costs 264 784 0.01 251
Strategic planning costs 248         405   0.01
Adjusted EBITDA $ 48,826   $ 0.89   $ 43,846   $ 0.82   $ 44,169   $ 0.81
 
Weighted average common and common equivalent shares outstanding (diluted) 54,624   53,162   54,327  
 
  Nine Months Ended September 30,
2013  

2012(1)

 

Net income $ 52,102     $ 0.96 $ 28,448     $ 0.62
Income (loss) from discontinued operations, net of tax 13,461   0.25   2,668   0.06  
Income from continuing operations 38,641 0.71 25,780 0.56
Interest expense, net 12,786 0.24 10,680 0.24
Write-off of loan costs 14,958 0.27 813 0.02
Provision for income taxes 27,075 0.50 19,105 0.42
Depreciation 5,795 0.11 4,766 0.10
Amortization of intangibles 15,853   0.29   11,197   0.24  
EBITDA 115,108 2.12 72,341 1.58
Equity-based compensation 10,237 0.19 6,518 0.15
Acquisition-related costs 676 0.01 9,838 0.21
Strategic planning costs 1,110   0.02      
Adjusted EBITDA $ 127,131   $ 2.34   $ 88,697   $ 1.94  
 
Weighted average common

and common equivalent

shares outstanding (diluted)

54,394   45,807  
 

RECONCILIATION OF GAAP INCOME AND EPS TO NON-GAAP INCOME AND EPS (Unaudited)

(In thousands, except per share amounts)

 
Three Months Ended
September 30,   June 30,
2013  

2012(1)

 

2013
Net income $ 20,150   $ 0.37 $ 15,503     $ 0.29 $ 7,339   $ 0.14
Income (loss) from discontinued operations, net of tax (59 )   847   0.01   (483 )
Income from continuing operations 20,209 0.37 14,656 0.28 7,822 0.14
Write-off of loan costs related to refinancing, net of income taxes 9,181 0.17
Acquisition-related costs, net of income taxes 159 0.01 649 0.01 143
Strategic planning expenses, net of income taxes 152         249   0.01
Non-GAAP income from continuing operations $ 20,520   $ 0.38   $ 15,305   $ 0.29   $ 17,395   $ 0.32
 
Weighted average common and common equivalent shares outstanding (diluted) 54,624  

 

53,162   54,327  

 

 
  Nine Months Ended September 30,
2013  

2012(1)

 

Net income $ 52,102     $ 0.96 $ 28,448     $ 0.62
Income (loss) from discontinued operations, net of tax 13,461   0.25   2,668   0.06  
Income from continuing operations 38,641 0.71 25,780 0.56
Write-off of loan costs related to refinancing, net of income taxes 9,181 0.17 701 0.02
Acquisition-related costs, net of income taxes 395 0.01 5,888 0.13
Strategic planning expenses, net of income taxes 682   0.01      
Non-GAAP income from continuing operations $ 48,899   $ 0.90   $ 32,369   $ 0.71  
 
Weighted average common

and common equivalent

shares outstanding (diluted)

54,394  

 

45,807  
 

CALCULATION OF ADJUSTED EARNINGS PER SHARE (Unaudited)

(In thousands, except per share amounts)

   
Three Months Ended Nine Months Ended
September 30, 2013
Non-GAAP income from continuing operations (1) $ 20,520 $ 48,899
Adjustments:
Amortization of intangible assets (2) 5,199 15,853
Cash tax savings on indefinite-lived intangible assets (3) 3,850 11,550
Excess of capital expenditures over depreciation, net of tax(4) (1,050 ) (3,150 )
Income from Continuing Operations - As Adjusted $ 28,519   $ 73,152  
 
Earnings per Diluted Share from Continuing Operations--

As Adjusted

$ 0.52   $ 1.34  
 
Weighted average common and common equivalent shares outstanding (diluted) 54,624   54,394  
 

(1) Non-GAAP income from continuing operations as calculated on preceding page. Non-GAAP income from continuing operations excludes the write-off of loan costs related to refinancing of the credit facility, acquisition-related cost and strategic planning expenses.

(2) Amortization of identifiable intangible assets of acquired businesses.

(3) Cash tax savings on indefinite-lived intangible assets (goodwill and trademarks related to acquisition of Apex Systems, Oxford and HealthCare Partners) that are amortized and deductible in the determination of income taxes, but not amortized for financial reporting purposes. These assets total $593.1 million and are amortized (and deducted) for income tax purposes on a straight-line basis over 15 years. The annual income tax deduction is $39.5 million and the annual after-tax cash savings are approximately $15.4 million, assuming an estimated marginal combined federal and state income tax rate of 39 percent.

(4) Excess capital expenditures over depreciation is equal to one-quarter of the estimated full year difference between capital expenditures (full year estimate of $15.9 million) less depreciation (full year estimate of $9.0 million), tax affected using an estimated marginal combined federal and state tax rate of 39 percent.

SUPPLEMENTAL FINANCIAL INFORMATION – REVENUES AND GROSS MARGINS (Unaudited)

(Dollars in thousands)

       
Technology
Apex   Oxford   Total Life Sciences Physician Healthcare Consolidated
Revenues:
Q3 2013 $ 246,369 $ 100,005 $ 346,374 $ 44,124 $ 26,223 $ 15,450 $ 432,171
Q2 2013 $ 233,446 $ 101,474 $ 334,920 $ 41,877 $ 26,466 $ 14,660 $ 417,923
% Sequential change 5.5 % (1.4 )% 3.4 % 5.4 % (0.9 )% 5.4 % 3.4 %
Q3 2012 $ 202,664 $ 88,104 $ 290,768 $ 40,646 $ 27,479 $ 15,618 $ 374,511
% Year-over-year change 21.6 % 13.5 % 19.1 % 8.6 % (4.6 )% (1.1 )% 15.4 %
 
Gross margins:
Q3 2013 28.2 % 34.7 % 30.1 % 32.4 % 28.2 % 31.2 % 30.2 %
Q2 2013 27.4 % 34.0 % 29.4 % 33.0 % 28.9 % 32.0 % 29.8 %
Q3 2012 28.1 % 35.5 % 30.3 % 34.4 % 30.5 % 32.5 % 30.9 %
 
Average number of staffing consultants:
Q3 2013 694 548 1,242 181 93 96 1,612
Q2 2013 679 540 1,219 182 100 97 1,598
Q3 2012 650 512 1,162 166 103 83 1,514
 
Technology        
Apex   Oxford   Total Life Sciences Physician Healthcare Consolidated
Average number of customers:
Q3 2013 586 664 1,250 933 188 512 2,883
Q2 2013 588 679 1,267 916 177 491 2,851
Q3 2012 607 650 1,257 928 194 529 2,908
 
Top 10 customers as a percentage of revenue:
Q3 2013 35.1 % 18.5 % 25.0 % 24.8 % 21.4 % 30.1 % 20.0 %
Q2 2013 34.1 % 20.4 % 24.1 % 25.1 % 22.3 % 28.8 % 19.3 %
Q3 2012 33.2 % 15.5 % 23.5 % 22.6 % 19.2 % 29.4 % 18.3 %
 
 
Average bill rate:
Q3 2013 $ 60.40 $ 122.70 $ 70.00 $ 33.71 $ 182.71 $ 36.64 $ 63.56
Q2 2013 $ 60.78 $ 123.43 $ 71.23 $ 34.28 $ 183.95 $ 37.14 $ 64.80
Q3 2012 $ 59.10 $ 120.16 $ 69.43 $ 35.21 $ 181.59 $ 37.15 $ 63.39
 
Gross profit per staffing consultant:
Q3 2013 $ 100,000 $ 63,000 $ 84,000 $ 79,000 $ 79,000 $ 50,000 $ 81,000
Q2 2013 $ 94,000 $ 64,000 $ 81,000 $ 76,000 $ 77,000 $ 48,000 $ 78,000
Q3 2012 $ 88,000 $ 61,000 $ 76,000 $ 84,000 $ 82,000 $ 61,000 $ 76,000
 

SUPPLEMENTAL FINANCIAL INFORMATION – KEY METRICS (Unaudited)

 
Three Months Ended
September 30,
2013
  June 30,
2013
Percentage of revenues:
Top ten clients 20.0 % 19.3 %
Direct hire/conversion 1.7 % 1.5 %
 
Bill rate:
% Sequential change (1.9 %) 0.9 %
% Year-over-year change 0.3 % %
 
Bill/Pay spread:
% Sequential change (1.6 %) 1.0 %
% Year-over-year change (0.3 %) (3.3 %)
 
Average headcount:
Contract professionals (CP) 12,586 11,961
Staffing consultants (SC) 1,612 1,598
 
Productivity:
Gross profit per SC 81,000 $ 78,000

Contact:
On Assignment, Inc.
Ed Pierce
Chief Financial Officer
(818) 878-7900

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