ASGN rporated(ASGN) - 2024 Q2 - Quarterly Results

Financial Performance - Revenues for Q2 2024 were $1.035 billion, a decrease of 8.5% compared to Q2 2023[5] - Net income was $47.2 million, or $1.02 per diluted share, down from $60.1 million, or $1.22 per diluted share in Q2 2023[7] - Adjusted EBITDA was $117.1 million, representing an adjusted EBITDA margin of 11.3%, compared to 12.0% in Q2 2023[7] - Commercial Segment revenues were $725.7 million, down 10.6% year-over-year, while Federal Government Segment revenues were $309.0 million, down 3.3% year-over-year[5] - Revenues for the three months ended June 30, 2024, were $1,034.7 million, a decrease of 8.5% compared to $1,130.9 million for the same period in 2023[18] - Operating income for the three months ended June 30, 2024, was $80.4 million, a decline of 18.0% from $97.9 million in the same quarter of 2023[18] - Net income for the three months ended June 30, 2024, was $47.2 million, down 21.8% from $60.1 million in the prior year[18] - Basic earnings per share for the three months ended June 30, 2024, were $1.03, compared to $1.23 for the same period in 2023, reflecting a decrease of 16.3%[18] Cash Flow and Assets - Cash provided by operating activities for the six months ended June 30, 2024, was $164.0 million, down from $193.0 million in the same period of 2023[19] - Free cash flow for the six months ended June 30, 2024, was $147.9 million, compared to $170.1 million for the same period in 2023[20] - Total assets as of June 30, 2024, were $3,450.8 million, a decrease from $3,544.6 million as of December 31, 2023[21] - Long-term debt as of June 30, 2024, was $1,035.4 million, slightly down from $1,036.6 million at the end of 2023[21] Future Projections - For Q3 2024, the company estimates revenues between $1.024 billion and $1.044 billion[11] - Adjusted EBITDA for Q3 2024 is estimated to be between $114.0 million and $119.0 million, with an adjusted EBITDA margin of 11.1% to 11.4%[11] - The company expects adjusted EBITDA for the third quarter of 2024 to be between $114.0 million and $119.0 million[26] Operational Metrics - IT consulting revenues accounted for 57.1% of total revenues, up from 53.1% a year ago[2] - Gross margin for Q2 2024 was 29.1%, an increase of 20 basis points from Q2 2023[6] - Selling, general, and administrative expenses were $205.6 million, down from $210.5 million in Q2 2023[7] - Gross profit for the three months ended June 30, 2024, was $301.1 million, representing a gross margin of 29.1%, down from $326.3 million and a margin of 28.8% in the prior year[18] Financial Definitions - EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin are used to measure the Company's operating results by excluding non-operating and certain non-cash expenses[29] - Adjusted Net Income focuses on the Company's core business performance by removing non-operating and certain non-cash expenses, adjusted for cash flows related to amortization of intangible assets[29] - Free Cash Flow indicates the cash generated by the business available for strategic opportunities, calculated as detailed in the accompanying tables[30] - Commercial consulting bookings represent the value of new contracts entered into during a specified period, with a book-to-bill ratio indicating the ratio of bookings to revenues[30] - Federal Government Segment new contract awards estimate future revenues from contracts awarded, with a book-to-bill ratio for this segment as well[30] - Revenues calculated on a Same Billable Days basis provide comparable information by adjusting for differences in the number of billable days year-over-year[31] Shareholder Actions - The company repurchased approximately 1.1 million shares for $108.0 million at an average price of $95.37 per share[8]