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ASGN rporated(ASGN) - 2024 Q4 - Annual Results
ASGNASGN rporated(ASGN)2025-02-05 21:10

Financial Performance - Revenues for Q4 2024 were 985.0million,downfrom985.0 million, down from 1.07 billion in Q4 2023, with IT consulting revenues at 577.0million,representing58.6577.0 million, representing 58.6% of total revenues[6][7] - Net income for Q4 2024 was 42.4 million (0.95perdilutedshare),comparedto0.95 per diluted share), compared to 50.3 million (1.06perdilutedshare)inQ42023[9][10]−AdjustedEBITDAforQ42024was1.06 per diluted share) in Q4 2023[9][10] - Adjusted EBITDA for Q4 2024 was 109.7 million, or 11.1% of revenues, down from 121.0million(11.3121.0 million (11.3% of revenues) in Q4 2023[10] - Revenues for the three months ended December 31, 2024, were 985.0 million, a decrease of 8.3% from 1,074.1millioninthesameperiodof2023[21]−Grossprofitforthesameperiodwas1,074.1 million in the same period of 2023[21] - Gross profit for the same period was 286.0 million, down 6.2% from 304.9millionyear−over−year[21]−NetincomeforthethreemonthsendedDecember31,2024,was304.9 million year-over-year[21] - Net income for the three months ended December 31, 2024, was 42.4 million, a decline of 15.5% compared to 50.3millionintheprioryear[21]−Basicearningspersharedecreasedto50.3 million in the prior year[21] - Basic earnings per share decreased to 0.96 from 1.07,reflectinga10.31.07, reflecting a 10.3% drop year-over-year[21] - Cash provided by operating activities was 100.2 million, down from 116.4millioninthepreviousquarter[23]−FreecashflowforthethreemonthsendedDecember31,2024,was116.4 million in the previous quarter[23] - Free cash flow for the three months ended December 31, 2024, was 88.9 million, compared to 109.2millioninthesameperiodof2023[23]−Totalassetsdecreasedto109.2 million in the same period of 2023[23] - Total assets decreased to 3,429.0 million from 3,544.6millionyear−over−year[23]−Long−termdebtremainedrelativelystableat3,544.6 million year-over-year[23] - Long-term debt remained relatively stable at 1,033.5 million compared to 1,036.6millioninthepreviousyear[23]FutureProjections−ForQ12025,thecompanyestimatesrevenuesbetween1,036.6 million in the previous year[23] Future Projections - For Q1 2025, the company estimates revenues between 950.0 million and 970.0million,withanexpectednetincomeof970.0 million, with an expected net income of 27.8 million to 30.7million[12][13]−Thecompanyexpectsnetincomeforthefirstquarterof2025tobebetween30.7 million[12][13] - The company expects net income for the first quarter of 2025 to be between 27.8 million and 30.7million[27]−Adjustednetincomeforthefirstquarterof2025isprojectedtobebetween30.7 million[27] - Adjusted net income for the first quarter of 2025 is projected to be between 40.2 million and 43.1million,withdilutedearningspershareexpectedtorangefrom43.1 million, with diluted earnings per share expected to range from 0.91 to 0.97[27]ShareholderActions−Thecompanyrepurchased0.5millionsharesfor0.97[27] Shareholder Actions - The company repurchased 0.5 million shares for 43.9 million at an average price of 90.45pershareduringQ42024[11]BusinessGrowthandStrategy−Thecommercialconsultingrevenuesgrewby690.45 per share during Q4 2024[11] Business Growth and Strategy - The commercial consulting revenues grew by 6% year-over-year, with a book-to-bill ratio of 1.1 in both the commercial and federal government segments[3][4] - The company announced a definitive agreement to acquire TopBloc, LLC for 340 million in cash and equity, enhancing its ERP capabilities[4] - The book-to-bill ratio for the Commercial consulting business indicates the ratio of new contract bookings to revenues, reflecting business growth[33] - For the Federal Government Segment, new contract awards represent estimated future revenues from contracts awarded, with a corresponding book-to-bill ratio[34] Financial Metrics and Measures - Cash and cash equivalents at the end of Q4 2024 were 205.2million,withfullavailabilityundera205.2 million, with full availability under a 500.0 million Senior Secured Revolving Credit Facility[14] - The company utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Free Cash Flow to evaluate its financial performance, providing a clearer view of core business operations[29][30][32] - Adjusted Net Income is calculated to focus on ongoing core business performance by excluding non-operating and certain non-cash expenses, along with adjustments for amortization of intangible assets[31] - Revenues calculated on a Same Billable Days basis provide a more accurate year-over-year comparison by adjusting for differences in billable days[35] Leadership Changes - The company is enhancing its leadership team with the appointment of a new President, Shiv Iyer, effective March 1, 2025[4] Gross Margin - Gross margin for Q4 2024 was 29.0%, an increase of 60 basis points from Q4 2023, with the commercial segment gross margin at 32.6%[8]