ASGN rporated(ASGN) - 2024 Q4 - Annual Results

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]