Financial Performance - Revenues for 2024 were $4.1 billion, a decrease of 7.9% year-over-year, with the Commercial Segment contributing $2.87 billion (down 9.6%) and the Federal Government Segment contributing $1.23 billion (down 3.5%) [128] - Gross profit declined 7.5% to $1.18 billion, with a gross margin of 28.9%, reflecting a higher mix of Commercial consulting revenues [134] - Net income for 2024 was $175.2 million, down from $219.3 million in 2023 [139] Expenses - Selling, general and administrative expenses were $821.2 million, representing 20.0% of revenues, down from 19.0% in 2023 [135] Bookings and Contracts - Commercial consulting bookings were $1.28 billion, down from $1.35 billion in 2023, with a book-to-bill ratio of 1.1 to 1 [142] - New contract awards in the Federal Government Segment increased to $1.34 billion from $1.02 billion in 2023, with a book-to-bill ratio of 1.1 to 1 [144] - Funded contract backlog was $529.0 million, while the total contract backlog was $3.12 billion, reflecting a coverage ratio of 2.5 to 1 [144] Cash Flow - Cash and cash equivalents at year-end were $205.2 million, with working capital of $550.6 million [145] - Net cash provided by operating activities was $400.0 million, down from $456.9 million in 2023 [146] - Net cash used in investing activities was $35.3 million, primarily related to capital expenditures [147] - Net cash used in financing activities in 2024 was $333.2 million, primarily for stock repurchases of $327.2 million and principal payments of $5.0 million on term loan B [148] - In 2023, net cash used in financing activities was $310.9 million, including $273.1 million for stock repurchases and $31.5 million in net repayments under the revolving credit facility [148] Debt and Obligations - Long-term debt obligations total $1,300.7 million, with $62.0 million due in less than 1 year and $627.7 million due in 3-5 years [150] - Total contractual cash obligations amount to $1,418.3 million, including operating leases and purchase obligations [150] - The company had no off-balance sheet arrangements as of December 31, 2024 [153] Reserves and Liabilities - Workers' compensation loss reserves were $2.8 million in 2024, down from $3.0 million in 2023, net of anticipated recoveries of $10.5 million [151] - Deferred compensation plan liability increased to $17.8 million in 2024 from $16.6 million in 2023 [152] Interest Rate Sensitivity - A hypothetical 100 basis-point change in interest rates on variable-rate debt would result in an interest expense fluctuation of approximately $4.9 million based on $493.8 million of debt outstanding [155] Credit Facilities - The August 2023 amendments to the senior secured credit facility generated net proceeds of $8.0 million, offset by related amendment costs [149] - The company has undrawn stand-by letters of credit outstanding of $3.7 million as of December 31, 2024 [151]

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $985 million, a decrease of 8.3% year-over-year, but essentially flat compared to Q3 2024 [36] - Gross margin for Q4 2024 was 29%, an increase of 60 basis points from the previous year [39] - Adjusted EBITDA was $109.7 million, with an adjusted EBITDA margin of 11.1% [40] Business Line Data and Key Metrics Changes - Revenue from the Commercial Segment was $692.7 million, a decrease of 7.5% year-over-year, while consulting revenues increased by 6% to $284.7 million [37][38] - Federal Government segment revenues were $292.3 million, a decrease of 10.2% year-over-year, primarily due to lower-than-expected software license revenues [38] Market Data and Key Metrics Changes - The Federal Government segment maintained a robust win rate of approximately 90% for re-competed contracts, with a contract backlog exceeding $3.1 billion [27][28] - The company noted improvements in the Financial Services vertical, particularly among Big Banking clients, which are significant IT spenders [14][55] Company Strategy and Development Direction - The company is focused on advancing towards higher-end, high-value IT consulting solutions, with IT consulting revenues comprising approximately 58% of total revenues [6] - The acquisition of TopBloc is aimed at enhancing organic consulting growth and capitalizing on the growing demand for ERP implementations [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving business confidence, although a turnaround in IT spending has yet to materialize [8] - The company anticipates that new administration spending initiatives could lead to increased demand for its core solutions in AI, cybersecurity, and digital modernization [29] Other Important Information - The company plans to allocate free cash flow towards paying down debt post-acquisition of TopBloc, which is expected to close in late Q1 2025 [45] - Free cash flow for Q4 was $88.9 million, with a conversion rate of approximately 81% of adjusted EBITDA [41] Q&A Session Summary Question: Can you provide more color on Federal Government conversations regarding the new administration? - Management indicated that clients are still trying to understand the impact of the new administration, but there is a strong need for services in AI, cybersecurity, and IT modernization [60][61] Question: Have you seen any slowdown in awarding contracts or payments? - Management noted that while there are mixed signals regarding new awards, they have not seen a slowdown in payments [64][66] Question: What are your thoughts on the TopBloc acquisition and its strategic importance? - The acquisition is seen as accretive to growth and margins, with significant opportunities in the Workday ecosystem [70][78] Question: Are there signs of improving activity in client budgets? - Management observed encouraging signs in certain sectors, particularly financial services, indicating a potential uptick in IT spending [79][83] Question: Can you elaborate on the performance of the Financial Services vertical? - The Financial Services vertical has seen a slight recovery, with current revenue mix in the high teens, compared to 20-25% historically [88][91] Question: How did Creative Circle perform in the quarter? - Creative Circle and CyberCoders, which make up about 9% of revenue, experienced a decline greater than the IT offering, consistent with previous trends [139]

Group 1 - ASGN Inc reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, but down from $1.45 per share a year ago, representing an earnings surprise of 4.07% [1] - The company posted revenues of $985 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.61%, and down from $1.07 billion year-over-year [2] - ASGN Inc shares have increased approximately 4.4% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Group 2 - The earnings outlook for ASGN Inc is uncertain, with current consensus EPS estimates at $1.14 on $1.01 billion in revenues for the coming quarter and $5.50 on $4.17 billion in revenues for the current fiscal year [7] - The estimate revisions trend for ASGN Inc is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Computers - IT Services industry, to which ASGN Inc belongs, is currently in the top 18% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Revenues for Q4 2024 were $985.0 million, down from $1.07 billion in Q4 2023, with IT consulting revenues at $577.0 million, representing 58.6% of total revenues[6][7] - Net income for Q4 2024 was $42.4 million ($0.95 per diluted share), compared to $50.3 million ($1.06 per diluted share) in Q4 2023[9][10] - Adjusted EBITDA for Q4 2024 was $109.7 million, or 11.1% of revenues, down from $121.0 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 $1,074.1 million in the same period of 2023[21] - Gross profit for the same period was $286.0 million, down 6.2% from $304.9 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 $50.3 million in the prior year[21] - Basic earnings per share decreased to $0.96 from $1.07, reflecting a 10.3% drop year-over-year[21] - Cash provided by operating activities was $100.2 million, down from $116.4 million in the previous quarter[23] - Free cash flow for the three months ended December 31, 2024, was $88.9 million, compared to $109.2 million in the same period of 2023[23] - Total assets decreased to $3,429.0 million from $3,544.6 million year-over-year[23] - Long-term debt remained relatively stable at $1,033.5 million compared to $1,036.6 million in the previous year[23] Future Projections - For Q1 2025, the company estimates revenues between $950.0 million and $970.0 million, with an expected net income of $27.8 million to $30.7 million[12][13] - The company expects net income for the first quarter of 2025 to be between $27.8 million and $30.7 million[27] - Adjusted net income for the first quarter of 2025 is projected to be between $40.2 million and $43.1 million, with diluted earnings per share expected to range from $0.91 to $0.97[27] Shareholder Actions - The company repurchased 0.5 million shares for $43.9 million at an average price of $90.45 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 $205.2 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]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for ASGN Inc when it reports results for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ASGN Inc is expected to report quarterly earnings of $1.23 per share, reflecting a year-over-year decrease of 15.2%, and revenues are projected to be $1 billion, down 6.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.87% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for ASGN Inc is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.90% [10][11]. - Despite the positive Earnings ESP, ASGN Inc holds a Zacks Rank of 4, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, ASGN Inc exceeded the expected earnings of $1.35 per share, achieving actual earnings of $1.43, which was a surprise of +5.93% [12]. - Over the past four quarters, ASGN Inc has beaten consensus EPS estimates three times [13]. Industry Comparison - DXC Technology, another player in the IT Services industry, is expected to report earnings of $0.77 per share, indicating a year-over-year decline of 11.5%, with revenues projected at $3.25 billion, down 4.3% [17]. - DXC Technology's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate results in an Earnings ESP of -1.66%, making it difficult to predict an earnings beat [18].

Financial Performance - Revenues for the three months ended September 30, 2024, were $1,031.0 million, a decrease of 7.6% compared to $1,116.8 million for the same period in 2023[6] - Net income for the three months ended September 30, 2024, was $47.5 million, down 20.1% from $59.4 million in the same period last year[5] - Operating income for the three months ended September 30, 2024, was $78.9 million, a decline of 20.0% compared to $98.6 million for the same period in 2023[6] - Basic earnings per share for the three months ended September 30, 2024, were $1.07, down from $1.23 in the same period last year, representing a decrease of 13.0%[6] - Comprehensive income for the three months ended September 30, 2024, was $47.7 million, compared to $58.1 million for the same period in 2023, reflecting a decrease of 18.0%[5] - Total revenues for the nine months ended September 30, 2024, were $3,114.7 million, down 7.8% from $3,376.5 million in the same period of 2023[27] - Net income for the nine months ended September 30, 2024, was $132.8 million, down from $169.0 million in the same period of 2023, representing a decrease of approximately 21.4%[9] - Basic earnings per share for the nine months ended September 30, 2024, was $2.93, compared to $3.46 for the same period in 2023, a decline of approximately 15.3%[23] Costs and Expenses - Costs of services for the three months ended September 30, 2024, were $730.6 million, down from $794.4 million in the same period last year, a decrease of 8.0%[6] - Selling, general, and administrative expenses for the three months ended September 30, 2024, were $207.5 million, slightly up from $206.0 million in the same period last year[6] - Stock-based compensation expense for the nine months ended September 30, 2024, was $32.6 million, slightly down from $33.7 million in 2023, a decrease of about 3.3%[9] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $299.8 million, compared to $340.5 million for the same period in 2023, a decrease of about 11.9%[9] - The company reported a net cash used in investing activities of $24.0 million for the nine months ended September 30, 2024, compared to $33.3 million in 2023, indicating a decrease of about 28.0%[9] - The company’s cash paid for income taxes increased to $22.8 million for the nine months ended September 30, 2024, compared to $12.0 million in the same period of 2023[10] - The company’s cash and cash equivalents at the end of the period were $166.6 million, compared to $145.6 million at the end of September 30, 2023, an increase of about 14.5%[9] Shareholder Equity and Stock Repurchase - The company repurchased and retired shares amounting to $95.1 million during the three months ended September 30, 2024[7] - The company repurchased $283.3 million of common stock during the nine months ended September 30, 2024, compared to $197.7 million in the same period of 2023, an increase of about 43.2%[9] - The balance of retained earnings as of September 30, 2024, was $1,091.4 million, down from $1,207.9 million as of September 30, 2023[8] - The total stockholders' equity decreased from $1,926.6 million on June 30, 2023, to $1,774.4 million on September 30, 2024, representing a decline of approximately 7.9%[7] Debt and Financial Obligations - Long-term debt as of September 30, 2024, totaled $1,034.4 million, slightly down from $1,036.6 million at December 31, 2023[16] - The company has $550.0 million of unsecured senior notes due in 2028, bearing interest at 4.625%[18] - The company is required to make quarterly minimum principal payments totaling $5.0 million annually on the term loan until maturity[16] Segment Performance - The Federal Government Segment generated revenues of $312.2 million for the three months ended September 30, 2024, compared to $334.4 million in the same period of 2023, a decline of 6.6%[27] - Revenues from the Commercial Segment for the three months ended September 30, 2024, were $718.8 million, down 8.2% from $782.4 million in the same period of 2023[27] - Department of Defense and Intelligence Agencies revenue for Q3 2024 was $141.5 million, a decrease of 14.1% from $164.8 million in Q3 2023[28] - Federal Civilian revenue for Q3 2024 was $159.8 million, slightly up from $159.5 million in Q3 2023, indicating a growth of 0.2%[28] Goodwill and Assets - The company’s total goodwill as of September 30, 2024, was $1,894.3 million, slightly up from $1,894.1 million at December 31, 2023[13] - The balance of goodwill as of September 30, 2024, was $1,894.3 million, reflecting a slight increase from $1,891.9 million as of December 31, 2022[13] - The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair value due to their short-term nature[29] Other Financial Information - The company reported a foreign currency translation adjustment of $0.2 million for the three months ended September 30, 2024[5] - There were no fair value adjustments for non-financial assets or liabilities during Q3 2024[30] - Estimated future amortization expense is projected to total $180.9 million over the next several years[15] - The company amended its senior secured credit facility in March 2024, resulting in a 50-basis point reduction in the term loan B interest rate[17]

Financial Data and Key Metrics Changes - Q3 2024 revenues were $1.031 billion, a decrease of 7.7% year-over-year but flat compared to Q2 2024 [20] - Adjusted EBITDA margin was 11.3%, reflecting the company's shift towards higher-end consulting solutions [4][22] - Gross margin for Q3 2024 was 29.1%, an increase of 20 basis points year-over-year [21] Business Line Data and Key Metrics Changes - Commercial segment revenues were $718.8 million, down 8.1% year-over-year, while commercial consulting revenues increased by 3.9% year-over-year to $285 million [20][6] - Federal Government segment revenues were $312.2 million, a decrease of 6.6% year-over-year but up 1% sequentially [20] - Book-to-bill ratio for the Commercial Segment was 1.1 times, indicating solid demand despite a focus on renewals [6] Market Data and Key Metrics Changes - TMT (Technology, Media, and Telecommunications) revenues grew by 10.9% year-over-year, driven by software and e-Commerce [6] - The Financial Services vertical showed slight growth, particularly in Regional Banks and Insurance Services [7] - The Federal Segment's contract backlog exceeded $3.1 billion, with a coverage ratio of 2.5 times trailing 12-month revenues [15] Company Strategy and Development Direction - The company is focusing on enhancing its consulting capabilities, particularly in data analytics, cloud, cybersecurity, and AI applications [5][14] - ASGN aims to differentiate itself by integrating comprehensive solutions across various industry verticals and leveraging partnerships with technology leaders [14] - The company is strategically positioning itself to support clients' IT roadmaps, particularly in the context of increasing demand for AI and digital transformation [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding IT spending, noting that clients are beginning to regain confidence [30] - The company anticipates stable market conditions in Q4 2024, with no significant uptick in IT spending expected [24] - Management highlighted the importance of foundational work in data management and cybersecurity to fully leverage AI opportunities [27] Other Important Information - Free cash flow for Q3 2024 was $127.9 million, representing a conversion rate of approximately 109% of adjusted EBITDA [22] - The company repurchased approximately one million shares for $95.6 million, with $573 million remaining under its share repurchase authorization [23] Q&A Session Summary Question: What trends are being monitored to become more bullish on IT spending? - Management noted that confidence in the economy, including interest rates and inflation, is crucial for clients to invest in IT [30] Question: Has the growth trend in commercial consulting stabilized? - Management indicated that low single-digit growth rates are expected, with solid bookings suggesting potential for higher growth in the future [32] Question: Can you elaborate on the strategy for solution architect additions? - The focus is on enhancing solution strength to meet evolving client needs, particularly in AI and security [35] Question: What is the outlook for IT spending in 2025? - While specific spending rates cannot be predicted, strong demand in the pipeline suggests potential for growth [36] Question: Any signs of stabilization in the assignment business? - Management observed stability in the assignment business, although perm placement has weakened [39] Question: How is the staffing model adapting to Gen AI productivity improvements? - Clients will still require talent, and the company is deploying AI to enhance productivity internally [41] Question: What is the outlook for the financial services vertical? - The financial services sector is showing improvement, particularly in regional banks, with expectations for increased staffing opportunities [46] Question: When will recent contract wins convert to revenue? - Most contributions from recent wins are expected to impact 2025 more significantly than Q4 2024 [68] Question: How is the company preparing for AI initiatives? - The company is focused on data cleanup and restructuring to support future AI applications [70]

For the quarter ended September 2024, ASGN Inc (ASGN) reported revenue of $1.03 billion, down 7.7% over the same period last year. EPS came in at $1.43, compared to $1.68 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.04 billion, representing a surprise of -0.41%. The company delivered an EPS surprise of +5.93%, with the consensus EPS estimate being $1.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

ASGN Inc (ASGN) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.93%. A quarter ago, it was expected that this staffing company would post earnings of $1.33 per share when it actually produced earnings of $1.36, delivering a surprise of 2.26%.Over the last four quarters, the company ...

Exhibit 99.1 ASGN Incorporated Reports Third Quarter 2024 Results Adjusted EBITDA and gross margins at midpoint or top end of guidance estimates October 23, 2024 RICHMOND, VA.— (BUSINESS WIRE) -- ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and solutions to the commercial and government sectors, reported financial results for the quarter ended September 30, 2024. Highlights • Revenues were $1.031 billion • Net income was $47.5 million • Adjusted EBITDA (a non-GAAP measure) was $116.9 mi ...