ASGN rporated(ASGN) - 2024 Q4 - Annual Report

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]