ASGN rporated(US:ASGN)2025-10-30 01:17Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,011.4 million, a decrease of 1.5% compared to $1,031.0 million for the same period in 2024[8] - Gross profit for the nine months ended September 30, 2025, was $865.6 million, down 3.5% from $897.7 million in 2024[8] - Operating income for the three months ended September 30, 2025, was $67.9 million, a decline of 13.0% from $78.9 million in 2024[8] - Net income for the three months ended September 30, 2025, was $38.1 million, compared to $47.5 million in the same period of 2024, representing a decrease of 19.6%[8] - Basic earnings per share for the three months ended September 30, 2025, were $0.88, down from $1.07 in 2024, reflecting a decline of 17.8%[8] - The company reported a comprehensive income of $37.7 million for the three months ended September 30, 2025, compared to $47.7 million in 2024, a decrease of 21.0%[8] - Net income for the nine months ended September 30, 2025, was $88.3 million, a decrease from $132.8 million in the same period of 2024, representing a decline of approximately 33.4%[11] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $225.6 million, down from $299.8 million in 2024, reflecting a decrease of about 24.7%[11] - The operating income for the nine months ended September 30, 2025, was $174.1 million, down from $230.2 million in the same period of 2024, indicating a decrease of about 24.4%[8] Assets and Liabilities - Total assets increased to $3,700.3 million as of September 30, 2025, up from $3,429.0 million at December 31, 2024, marking a growth of 7.9%[7] - Long-term debt rose to $1,165.7 million as of September 30, 2025, compared to $1,033.5 million at December 31, 2024, an increase of 12.8%[7] - Stockholders' equity increased to $1,833.1 million as of September 30, 2025, up from $1,776.7 million at December 31, 2024, reflecting a growth of 3.2%[7] - Cash and cash equivalents at the end of the period were $126.5 million, down from $166.6 million at the end of 2024, indicating a decrease of approximately 24.0%[11] - The company’s accounts payable increased to $38.2 million as of September 30, 2025, compared to $27.2 million at the end of 2024, reflecting a rise of approximately 40.0%[16] - The company’s operating lease liabilities were $20.7 million as of September 30, 2025, up from $19.5 million at the end of 2024, indicating an increase of about 6.2%[16] - Long-term debt as of September 30, 2025, totaled $1,165.7 million, an increase from $1,033.5 million at the end of 2024, reflecting new borrowings related to acquisitions[22] - The carrying amount of long-term debt as of September 30, 2025, was $1.2 billion[39] Acquisitions and Goodwill - The company acquired TopBloc, LLC for $340.0 million, with 90% paid in cash and 10% in equity, impacting the financial results from the acquisition date[18] - Goodwill increased to $2,142.4 million as of September 30, 2025, up from $1,893.1 million at the end of 2024, primarily due to the TopBloc acquisition[19] - Cash paid for acquisitions, net of cash acquired, was $306.1 million for the nine months ended September 30, 2025, with no acquisitions reported in the same period of 2024[11] Segment Performance - Total revenues for the Federal Government Segment for the three months ended September 30, 2025, were $300.1 million, compared to $312.2 million in 2024, a decrease of 3.4%[35] - The Commercial Segment generated revenues of $711.3 million for the three months ended September 30, 2025, compared to $718.8 million in 2024, a decrease of 1.9%[32] - Segment operating income for the Federal Government Segment was $25.4 million for the three months ended September 30, 2025, compared to $24.6 million in 2024, an increase of 3.2%[32] - The Company reported a gross profit of $296.9 million for the three months ended September 30, 2025, compared to $300.4 million in 2024, a decrease of 1.2%[32] Debt and Financing - The Company amended its senior secured credit facility in July 2025, adding a $100.0 million incremental term loan facility with interest rates ranging from SOFR plus 1.50% to 2.50%[23] - As of September 30, 2025, the Company had $550.0 million of unsecured senior notes due in 2028, bearing interest at 4.625%[24] - The Company was in compliance with its debt covenants as of September 30, 2025, with a senior secured debt to trailing-twelve-months EBITDA ratio of 1.45 to 1, below the maximum limit of 3.75 to 1[23] Tax and Expenses - The company reported cash paid for income taxes of $6.6 million for the nine months ended September 30, 2025, compared to $22.8 million in 2024, a decrease of about 71.0%[12] - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $212.2 million, up from $207.5 million in the same period last year, reflecting an increase of 3.4%[8] - The Company does not expect the One Big Beautiful Bill Act ("OBBBA") to materially affect its estimated effective tax rate[28] Future Projections - Estimated future amortization expense for identifiable intangible assets is projected to be $165.4 million over the next several years, with $16.8 million expected in the remainder of 2025[21] - The Company's effective tax rate is based on its estimated full-year income and can be affected by changes in geographical mix and permanent differences[26]