1© 2019 ASGN Incorporated. All rights reserved.
ASGN Incorporated Q4 2019 Earnings Release
Supplemental Materials
ASGN Incorporated. All rights reserved.
© 2020 ASGN Incorporated. All rights reserved.
2
Safe Harbor
Certain statements made in this presentation are “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a
high degree of risk and uncertainty. Forward looking statements include statements regarding
our anticipated financial and operating performance.
All statements in this presentation, other than those setting forth strictly historical information,
are forward-looking statements. Forward-looking statements are not guarantees of future
performance, and actual results might differ materially. In particular, we make no assurances
that the estimates of revenues, gross margin, SG&A, amortization, effective tax rate, net
income, diluted shares outstanding, contract backlog, book-to-bill ratio, Adjusted EBITDA,
Adjusted Net Income, and related per share amounts (as applicable) set forth below will be
achieved. Factors that could cause or contribute to such differences include actual demand for
our services, our ability to attract, train and retain qualified staffing consultants, our ability to
remain competitive in obtaining and retaining clients, the availability of qualified contract
professionals, management of our growth, continued performance and improvement of our
enterprise-wide information systems, our ability to manage our litigation matters, the successful
integration of our acquired subsidiaries, and other risks detailed from time to time in our reports
filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31,
2018, as filed with the SEC on March 1, 2019 and our Quarterly Reports on Form 10-Q for the
quarters ended March 31,2019, June 30, 2019 and September 30, 2019 as filed with the SEC
on May 10, 2019, August 8, 2019 and November 8, 2019. We specifically disclaim any intention
or duty to update any forward-looking statements contained in this presentation.
© 2020 ASGN Incorporated. All rights reserved.
Reasons for Presentation of Operating Metrics
3
Operating metrics are intended to enhance the overall understanding of our business and our
current financial performance. These operating metrics might not be calculated in the same
manner as, and thus might not be comparable to, similarly titled metrics reported by other
companies.
Contract backlog for our ECS segment represents the estimated amount of future revenues to
be recognized under negotiated contracts and task orders. Book-to-bill ratio for our ECS
segment is calculated as the sum of the change in total backlog during the quarter plus
revenues for the quarter, divided by revenues for the quarter. The operating metrics for the
Apex and Oxford segments are calculated as follows: assignment revenue hours worked are
billable hours for work performed by contract professionals in the quarter; average number of
staffing consultants are the sales and recruiting personnel employed for the quarter; gross
profit per staffing consultant is gross profit for the quarter divided by the average number of
staffing consultants; average assignment revenue per hour is reported assignment revenue in
the quarter divided by total assignment revenue hours worked in the quarter.
© 2020 ASGN Incorporated. All rights reserved.
International
95.6% of Consolidated Revenues 4.4% of Consolidated Revenues
Strategic Acquisitions
$116.4MDHA on 1/25/2019
Intersys on 10/17/2019
Debt Payment
$83.2MYear-to-date 12/31/2019
Q4 2019 Q4 2018Assignment 74.1% 77.5%
Perm Placement 3.1% 3.8%
ECS 22.8% 18.7%
Free Cash Flow
$280.5MYear-to-date 12/31/2019
Q4 2019 Q4 2018GAAP $0.74 $0.86
Adjusted $1.28 $1.14
Avg. Assignment Revenue Per Hour Worked
Assignment Revenue Hours
Worked1
-1.1%
11.1M
-2.3%
2,583
Avg. Staffing Consultants
Gross Profit Per Staffing Consultant
$97K
5.2%6.6%
$68.36
4
Q4 2019 Consolidated Performance
EPS (DILUTED)
STRONG FREE CASH FLOW GENERATION
CONSOLIDATED REVENUES
$923.7M
10.7% Pro Forma Growth
34.8%
SIA ‘19/’18 Growth Estimates:
Industry: 4%
IT: 4% Q4 2019$116.2M
11.3%
GROSS MARGIN REVENUE MIX
Q4 2019 Q4 201828.2% 29.2%
Q4 2018$109.1M
11.7%
This presentation includes non-GAAP financial measures. A description of these non-GAAP financial measures and the reconciliation from the comparable GAAP measures
to the non-GAAP measures are included in our earnings releases.
GEOGRAPHIC FOOTPRINT
Domestic
APEX & OXFORD SEGMENTS SELECT OPERATING METRICS (Y/Y Growth) ECS SELECT OPERATING METRICS
ContractBacklog
$2.6B
Book-to-Bill Ratio
0.5
BillableProfessionals
2,711 $979.9M $45.3M
CONSOLIDATED REVENUES
$1,025.2M
10.3%
SIA ‘19/’18 Growth Estimates:
Industry: 3%
IT: 3%
Select Financial Metrics
ADJUSTED EBITDA
Share Repurchases
$20.0M(324,373 Shares)
Year-to-date 12/31/2019
1 See slide 6 for additional information.
© 2020 ASGN Incorporated. All rights reserved.
Q4 2019 Segment Performance
5
ContractBacklog
Revenues byContract Type
Revenues byCustomer
$2.6B
CONSOLIDATED REVENUESREVENUES
$641.3M62.6% of Consolidated
Revenues
GROSS MARGIN
29.7%
6.1% $150.4M14.6% of Consolidated
Revenues
GROSS MARGIN
39.6%
-0.6%
ETURNING CASFLOW TO INVESTORS
-3.1%-7.7%
APEX OXFORD
Avg. Assignment Revenue Per Hour Worked
-0.8%
9.9M
Assignment Revenue Hours
Worked
0.6%
1,744
Avg. Staffing Consultants
Assignment Revenue Hours
Worked
Avg. Staffing Consultants
GP Per Staffing
Consultant
$109K
Avg. Assignment Revenue Per Hour Worked
GP Per Staffing
Consultant
4.3%7.3%
$63.54 $71K$107.281.2M839
SELECT OPERATING METRICS (Y/Y Growth)
Mission critical IT skills and solutions
4.4% 4.9%
SERVICE OFFERINGS
Clinical and Scientific skills and solutions
Creative/Digital skills and solutions
High-end IT and Engineering skills and solutions
Permanent Placement solutions
Clinical and Scientific skills and solutions in Europe
ECS $233.5M22.8% of Consolidated
Revenues
GROSS MARGIN
16.8%
34.3%
APEX OXFORD ECS
Critical Government IT services and solutions
Infrastructure
Agile Software & Cloud Solutions
Advanced Science & Engineering
ECSOXFORDAPEX
© 2020 ASGN Incorporated. All rights reserved.
Q1 2020 Financial Estimates and Key Takeaways
6
1 Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets.” These savings total $7.1 million each quarter, or $0.13 per diluted share, and represent the economic value of the tax deduction that ASGN receives from
the amortization of goodwill and trademarks.2 Stock-based compensation expense of $9.0 million, depreciation of $8.1 million in SG&A expenses and depreciation of $1.4 million in costs of services are added back in the determination of Adjusted EBITDA..
(In millions, except per share amounts)
Low High Mid-Point
Revenues 990.0$ 1,000.0$ 995.0$
Y-Y growth rate 7.2% 8.3% 7.7%
Gross Margin 28.1% 28.4% 28.3%
SG&A Expenses 196.7 197.5 197.1
Amortization of Intangible Assets 12.2 12.2 12.2
Net Income:
GAAP 42.3$ 45.9$ 44.1$
Adjusted1 54.4$ 58.1$ 56.3$
EPS (Diluted):
GAAP 0.79$ 0.86$ 0.82$
Adjusted1 1.02$ 1.09$ 1.05$
Effective Tax Rate 27.1% 27.1% 27.1%
Adjusted EBITDA2 100.0$ 105.0$ 102.5$
Adjusted EBITDA Margin 10.1% 10.5% 10.3%
Diluted Shares 53.5 53.5 53.5
© 2020 ASGN Incorporated. All rights reserved.
7
Apex & Oxford Segments Business & Billable Days
1 Business days are weekdays less observable holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day, Day after Thanksgiving and Christmas.2 Besides weekends and holidays, Billable Days consider other factors, such as the day of the week a holiday occurs and additional time taken off around holidays.
Q1 Q2 Q3 Q4 Full Year
Business Days1
2020 64.00 64.00 64.00 62.00 254.00
2019 63.00 64.00 64.00 62.00 253.00
2018 64.00 64.00 63.00 62.00 253.00
2020/19 1.00 - - - 1.00
2019/18 -1.00 - 1.00 - -
Billable Days2
2020 Est. 63.00 63.75 64.00 60.50 251.25
2019 62.00 64.00 63.00 60.50 249.50
2018 63.00 64.00 62.50 60.50 250.00
2020/19 1.00 -0.25 1.00 - 1.75
2019/18 -1.00 - 0.50 - -0.50
ASGN Incorporated 26745 Malibu Hills Road
Calabasas, CA 91301
818.878.7900
asgn.com