On Assignment, Inc. (ASGN) has reported a 28.68 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $22.39 million, or $0.42 a share in the quarter, compared with $17.40 million, or $0.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.23 million, or $0.61 a share compared with $28.85 million or $0.54 a share, a year ago. Revenue during the quarter grew 7.64 percent to $626.53 million from $582.04 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 31.63 percent. Total expenses were 93.04 percent of quarterly revenues, down from 93.51 percent for the same period last year. This has led to an improvement of 47 basis points in operating margin to 6.96 percent.
Operating income for the quarter was $43.61 million, compared with $37.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $64.56 million compared with $62.43 million in the prior year period. At the same time, adjusted EBITDA margin contracted 42 basis points in the quarter to 10.30 percent from 10.73 percent in the last year period.
Commenting on the results, Peter Dameris, Chief Executive Officer of On Assignment, said "Many positive developments occurred in the first quarter for our Company and our industry. A renewed focus by customers on work being performed by domestic labor and the continued adoption of our delivery/development model has permitted us to once again report solid results. As we look forward, economic and legislative factors remain positive and we continue to invest in and alter our divisions operating strategies to deliver higher growth."
For the second-quarter, On Assignment, Inc. projects revenue to be in the range of $650 million to $660 million. On Assignment expects net income to be in the range of $29.40 million to $31.30 million and forecasts adjusted net income to be in the range of $37.30 million to $39 million. The company forecasts diluted earnings per share to be in the range of $0.55 to $0.59. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.70 to $0.73.
Operating cash flow improves On Assignment, Inc. has generated cash of $43.80 million from operating activities during the quarter, up 14.58 percent or $5.57 million, when compared with the last year period.
The company has spent $6.78 million cash to meet investing activities during the quarter as against cash outgo of $1.11 million in the last year period.
The company has spent $40.22 million cash to carry out financing activities during the quarter as against cash outgo of $32.57 million in the last year period.
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