ASGN rporated(US:ASGN)2025-05-01 00:07Financial Performance - Revenues for Q1 2025 were $968.3 million, a decrease of 7.7% compared to $1,049.0 million in Q1 2024[8] - Gross profit for Q1 2025 was $275.4 million, down from $296.2 million in Q1 2024, reflecting a gross margin of 28.5%[8] - Net income for Q1 2025 was $20.9 million, a decline of 45.0% from $38.1 million in Q1 2024, resulting in earnings per share of $0.48[8] - The company reported a comprehensive income of $21.7 million for Q1 2025, compared to $37.9 million in Q1 2024[8] - Basic earnings per share for the three months ended March 31, 2025, were $0.48, compared to $0.82 for the same period in 2024, reflecting a decrease of approximately 41.5%[25] - Operating income decreased to $46.6 million in Q1 2025, a decline of 34.2% from $70.9 million in Q1 2024[8] - The Company reported a segment operating income of $74.9 million for the three months ended March 31, 2025, compared to $91.8 million for the same period in 2024, a decrease of approximately 18.4%[27] Assets and Liabilities - Total assets increased to $3,698.4 million as of March 31, 2025, compared to $3,429.0 million at December 31, 2024[7] - Long-term debt rose to $1,282.6 million as of March 31, 2025, up from $1,033.5 million at the end of 2024[7] - Long-term debt as of March 31, 2025, totaled $1,282.6 million, an increase from $1,033.5 million as of December 31, 2024[18] - The Company has $550.0 million of unsecured senior notes due in 2028, bearing interest at 4.625% payable semiannually[20] Acquisition Details - The company completed the acquisition of TopBloc, LLC for $340.0 million, with 90% paid in cash and 10% in equity[14] - The preliminary fair value of identifiable intangible assets from the TopBloc acquisition is estimated at $78.9 million, with goodwill of $245.9 million[14] - Goodwill balance as of March 31, 2025, is $2,139.5 million, reflecting an increase from $1,893.1 million as of December 31, 2024, primarily due to the acquisition of TopBloc for $245.9 million[15] - Goodwill from the TopBloc acquisition is estimated at $245.9 million, with approximately $215.6 million deductible for income taxes[14] Cash Flow - Cash and cash equivalents decreased to $107.0 million at the end of Q1 2025, down from $205.2 million at the beginning of the year[11] - Net cash provided by operating activities was $16.8 million in Q1 2025, significantly lower than $73.3 million in Q1 2024[11] Segment Performance - The Commercial Segment generated revenues of $672.2 million for the three months ended March 31, 2025, while the Federal Government Segment contributed $296.1 million[27] - The Company’s Federal Government Segment revenues from the Department of Defense and Intelligence Agencies were $128.9 million for the three months ended March 31, 2025, down from $150.1 million in 2024[30] - The Federal Government Segment generated revenues of $296.1 million for the three months ended March 31, 2025, down from $317.5 million in the same period of 2024, a decrease of approximately 6.5%[30] - The Commercial Segment's consulting revenues increased to $290.1 million for the three months ended March 31, 2025, compared to $277.0 million in the same period of 2024, reflecting a growth of 4.5%[27] Compliance and Future Expenses - The Company is in compliance with its debt covenants, with a maximum ratio of senior secured debt to trailing-twelve-months consolidated EBITDA of 1.64 to 1 as of March 31, 2025[19] - Estimated future amortization expense for identifiable intangible assets totals $199.2 million, with the highest expense of $54.1 million expected in 2026[17]