On Assignment Inc (ASGN) has reported a 24.25 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $24.03 million, or $0.45 a share in the quarter, compared with $19.34 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34.30 million, or $0.64 a share compared with $34.11 million or $0.64 a share, a year ago.
Revenue during the quarter grew 7.51 percent to $620.88 million from $577.52 million in the previous year period. Gross margin for the quarter contracted 149 basis points over the previous year period to 31.92 percent. Total expenses were 92.61 percent of quarterly revenues, up from 92.58 percent for the same period last year. That has resulted in a contraction of 4 basis points in operating margin to 7.39 percent.
Operating income for the quarter was $45.86 million, compared with $42.86 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $70.72 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 86 basis points in the quarter to 11.39 percent from 12.25 percent in the last year period.
Commenting on the results, Peter Dameris, chief executive officer of On Assignment, Inc., said, "The fourth quarter and full year 2016 were once again record periods of financial performance for our company. Throughout 2016, we continued to grow above published industry growth rates and established many new and meaningful customer relationships."
For the first-quarter, On Assignment expects revenue to be in the range of $614 million to $624 million. On Assignment forecasts net income to be in the range of $21.50 million to $23.40 million for the first-quarter. On Assignment projects adjusted net income to be in the range of $29.70 million to $31.60 million for the first-quarter. The company projects diluted earnings per share to be in the range of $0.41 to $0.44 for the first-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.56 to $0.60 for the first-quarter.
Operating cash flow improves significantly
On Assignment Inc has generated cash of $196.25 million from operating activities during the year, up 67.03 percent or $78.76 million, when compared with the last year.
The company has spent $21.98 million cash to meet investing activities during the year as against cash outgo of $461.53 million in the last year.
The company has spent $170.98 million cash to carry out financing activities during the year as against cash inflow of $337.66 million in the last year period.
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