On Assignment Reports Results for Third Quarter 2013

  On Assignment Reports Results for Third Quarter 2013

                   Revenues up 15.4 percent Year-over-Year

                    EPS & Adjusted EBITDA above Estimates

           Revenues from IT Segments up 19.1 percent Year-over-Year

Business Wire

CALABASAS, Calif. -- October 23, 2013

On Assignment, Inc. (NYSE: ASGN), a leading global provider of diversified
professional staffing solutions, today reported results for the quarter ended
September 30, 2013.

Third Quarter Highlights

  *Revenues were $432.2 million, up 15.4 percent year-over-year and 3.4
    percent sequentially.
  *Gross margin was 30.2 percent, up from 29.8 percent in the preceding
    quarter.
  *Income from continuing operations was $20.2 million ($0.37 per diluted
    share), up from $14.7 million ($0.28 per diluted share) in the third
    quarter of 2012.
  *Adjusted income from continuing operations (a non-GAAP measure set forth
    in the table below) was $28.5 million ($0.52 per diluted share).
  *Adjusted EBITDA (a non-GAAP measure defined below) was $48.8 million, up
    from $43.8 million in third quarter of 2012.
  *Percentage of gross profit converted into Adjusted EBITDA was 37.4
    percent, up from 35.5 percent in second quarter of 2013.
  *Leverage ratio (total indebtedness to trailing twelve months Adjusted
    EBITDA) was 2.16 to 1, down from 2.88 to 1 at December 31, 2012.

Commenting on the results, Peter Dameris, President and Chief Executive
Officer of On Assignment, Inc., said, “We reported a very strong quarter.
Revenues, gross margin, EPS and Adjusted EBITDA were at or above the high-end
of our estimates. We continued to improve our operating leverage as evidenced
by the percentage of gross profit converted into Adjusted EBITDA. Our
conversion of gross profit into Adjusted EBITDA for the quarter was 37.4
percent, up from 35.5 percent in the second quarter of 2013.”

“Our strong revenue growth for the quarter was mainly driven by our IT
businesses, Apex Systems and Oxford, which account for approximately 80
percent of our operations. Revenues from our IT businesses grew 19.1 percent
year-over-year and 3.4 percent sequentially. In that sector of the market, we
are the second largest provider of staffing services and we continue to grow
faster than the overall market reflecting the benefit of our scale and
operating models. We also continue to believe we are benefiting from a shift
in spending toward IT staffing and away from other IT services delivery
models, such as consulting and offshoring, as CIOs continue to focus sharply
on project flexibility and accountability and cost control.”

“Revenues of our non-IT businesses (Life Sciences, Physician & Healthcare),
which combined account for approximately 20 percent of our operations, were up
2.5 percent year-over-year and 3.4 percent sequentially. The growth of these
businesses, except for the Physician segment, was in line with our estimates.
The Physician business was down 4.6 percent year-over-year and below our
revenue estimate for the quarter by $1.5 million, due to a less than robust
hospital admissions environment. Our Life Sciences and Healthcare segments
continue to improve and both reported revenue growth of 5.4 percent
sequentially.”

Third Quarter 2013 Results

Revenues for the quarter were $432.2 million, up 15.4 percent year-over-year
and 3.4 percent sequentially. Our Information Technology businesses (Apex
Systems and Oxford), which grew 19.1 percent year-over-year and 3.4 percent
sequentially, accounted for 96 percent of the revenue growth in the quarter.
Our non-Information Technology segments (Life Sciences, Physician and
Healthcare), were up 2.5 percent year-over-year and 3.4 percent sequentially.

Gross profit was $130.6 million, up 13.0 percent year-over-year and up 4.9
percent sequentially. This improvement was primarily due to growth in
revenues. Gross margin for the quarter was 30.2 percent, down from 30.9
percent in the third quarter of 2012 and up from 29.8 percent in the second
quarter of 2013. The year-over-year compression in gross margin was mainly
attributable to a lower mix of permanent placement revenues (1.7 percent of
revenues for the quarter compared with 2.0 percent in the third quarter of
2012), a higher mix for revenues from Apex Systems, which has a lower gross
margin than the other operating segments, and higher growth of lower-margin
services. The sequential expansion in gross margin was primarily due to an
increase in the mix of permanent placement revenues which was 1.7 percent of
revenues for the quarter, up from 1.5 percent in the second quarter of 2013.

Selling, general and administrative expenses (“SG&A”) were $88.5 million, up
from $77.4 million in the third quarter of 2012. This increase due to
incentive compensation related to the incremental increase in gross profit and
infrastructure investments to support the growth of the business. SG&A for the
quarter included a $1.0 million benefit for the reduction of an earn-out
obligation (a $1.0 million reduction in an earn-out obligation was also
included in the third quarter of 2012) and charges totaling $0.7 million for
certain non-recurring expenses.

Amortization of intangible assets was $5.2 million, compared with $6.7 million
in the third quarter of 2012.

Interest expense for the quarter was $3.3 million compared with $6.0 million
in the third quarter of 2012. Interest expense for the quarter was comprised
of interest on the credit facility of $3.0 million and amortization of
capitalized loan costs of $0.3 million.

The effective income tax rate for the quarter was 39.9 percent compared with
42.5 percent for the third quarter of 2012. The improvement in the effective
tax rate for the quarter benefited from the $1.0 million reduction in an
earn-out obligation, which is not taxable and higher growth in income before
income taxes than the growth in permanent book-to-tax differences.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and
amortization of identifiable intangible assets plus equity-based compensation
expense, impairment charges, acquisition-related costs and fees and expenses
of the outside consulting firm assisting with our strategic planning
initiatives), was $48.8 million, up from $43.8 million for the third quarter
of 2012.

Income from continuing operations was $20.2 million ($0.37 per diluted share)
compared with $14.7 million ($0.28 per diluted share) for the third quarter of
2012.

Net income, which is comprised of income from continuing operations and the
income (loss) from discontinued operations, was $20.2 million ($0.37 per
diluted share) compared with $15.5 million ($0.29 per diluted share) in the
third quarter of 2012. Net income for the quarter included (i)
acquisition-related costs and strategic planning expenses of $0.5 million
($0.3 million, or $0.01 per diluted share, after tax) and (iii) a $0.1 million
loss from discontinued operations.

Financial Estimates for Q4 2013

On Assignment is providing below financial estimates from continuing
operations for the fourth quarter of 2013. These estimates do not include
acquisition-related costs and strategic planning expenses and assume no
deterioration in the staffing markets that On Assignment serves.

  *Revenues of $429 million to $433 million
  *Gross Margin of 29.8 percent to 30.1 percent
  *SG&A (excludes amortization of intangible assets) of $90.0 to $91.0
    million (includes $2.4 million in depreciation and $3.9 million in
    equity-based compensation expense)
  *Amortization of intangible assets of $5.2 million
  *Adjusted EBITDA of $44 million to $46 million
  *Effective tax rate of 41.5 percent
  *Adjusted Income from Continuing Operations of $25.1 million to $26.3
    million
  *Adjusted Income from Continuing Operations per diluted share of $0.46 to
    $0.48
  *Income from Continuing Operations of $17.1 million to $18.3 million
  *Income from Continuing Operations per diluted share of $0.31 to $0.33
  *Diluted shares outstanding of 54.7 million

These estimates reflect normal seasonality in the business. The estimates
assume year-over-year revenue growth of approximately mid-to high teens for IT
segments (Apex Systems and Oxford), mid-single digit for Life Sciences, low
single digit decline for Physician Staffing and modest growth in Allied
Healthcare. The above estimates assume billable days of 61.4 for the quarter,
which are 2.3 fewer days than the preceding quarter. The fewer billable days
in the fourth quarter results in a sequential decrease in revenues of
approximately $15.6 million based on the average revenues per billable day in
the third quarter of 2013.

Conference Call

On Assignment will hold a conference call today at 4:30 p.m. EDT to review its
third quarter financial results. The dial-in number is 800-230-1766
(+1-612-332-0107 for callers outside the United States) and the conference ID
number is 305264. Participants should dial in ten minutes before the call. A
replay of the conference call will be available beginning today at 7:30 p.m.
EDT and ending at midnight EST on Friday, November 22, 2013. The access number
for the replay is 800-475-6701 (+1-320-365-3844 for callers outside the United
States) and the conference ID number 305264.

This call is being webcast byThomson/CCBN and can be accessed via On
Assignment's web site at www.onassignment.com. Individual investors can also
listen atThomson/CCBN's site at www.fulldisclosure.com or by visiting any of
the investor sites inThomson/CCBN's Individual Investor Network.

About On Assignment

On Assignment, Inc. (NYSE: ASGN), is a leading global provider of in-demand,
skilled professionals in the growing technology, healthcare and life sciences
sectors, where quality people are the key to success.The Companygoes beyond
matching résumés with job descriptions to match people they know into
positions they understand for temporary, contract-to-hire, and direct hire
assignments. Clients recognize On Assignment for their quality candidates,
quick response, and successful assignments. Professionals think of On
Assignment as career-building partners with the depth and breadth of
experience to help them reach their goals.

On Assignment was founded in 1985 and went public in 1992. The Company, which
is headquartered in Calabasas, California, operates through a network of
approximately 130 branch offices throughout the United States, Canada, United
Kingdom, Netherlands, Ireland and Belgium. Additionally, physicianplacements
are made in Australia and New Zealand. To learn more, visit
http://www.onassignment.com.

Reasons for Presentation of Non-GAAP Financial Measures

Statements in this release and the Supplemental Financial Information
accompanying include non-GAAP financial measures. Such information is provided
as additional information, not as an alternative to our consolidated financial
statements presented in accordance with GAAP, and is intended to enhance an
overall understanding of our current financial performance. The Supplemental
Financial Information sets forth financial measures reviewed by our management
to evaluate our operating performance. Such measures also are used to
determine a portion of the compensation for some of our executives and
employees. We believe the non-GAAP financial measures provide useful
information to management, investors and prospective investors by excluding
certain charges and other amounts that we believe are not indicative of our
core operating results. These non-GAAP measures are included to provide
management, our investors and prospective investors with an alternative method
for assessing our operating results in a manner that is focused on the
performance of our ongoing operations and to provide a more consistent basis
for comparison between quarters. One of the non-GAAP financial measures
presented is EBITDA (earnings before interest, taxes, depreciation, and
amortization of identifiable intangible assets), other terms include Adjusted
EBITDA (EBITDA plus equity-based compensation expense, impairment charges,
write-off of loan fees, acquisition related costs and strategic planning
costs) and Non-GAAP Income from Continuing Operations (Income from continuing
operations, plus acquisition related expenses, deferred financing fees
written-off and strategic planning costs, net of tax) and Adjusted Income from
Continuing Operations and related per share amounts. These terms might not be
calculated in the same manner as, and thus might not be comparable to,
similarly titled measures reported by other companies. The financial statement
tables that accompany this press release include reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP financial
measure.

Safe Harbor

Certain statements made in this news release are “forward-looking statements”
within the meaning of Section21E of the Securities Exchange Act of 1934, as
amended, and involve a high degree of risk and uncertainty. Forward-looking
statements include statements regarding the Company's anticipated financial
and operating performance in 2013. All statements in this release, 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, the
Company makes no assurances that the estimates of revenues, gross margin,
SG&A, Adjusted EBITDA, income from continuing operations, adjusted income from
continuing operations, earnings per share or earnings per diluted share set
forth above 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 temporary staffing clients, the
availability of qualified temporary professionals, management of our growth,
continued performance of our enterprise-wide information systems, and other
risks detailed from time to time in our reports filed with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2012, as filed with the SEC on March 18, 2013, our report
on Form 8-K filed with the SEC on June 13, 2013, and our Forms 10-Q for the
quarterly periods ended March 31, 2013 and June 30, 2013 as filed with the SEC
on May 9, 2013 and August 2, 2013, respectively. We specifically disclaim any
intention or duty to update any forward-looking statements contained in this
news release.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except per share amounts)

               Three Months Ended                         Nine Months Ended
               September 30,                June 30,      September 30,
               2013         2012^(1)       2013          2013           2012^(1)    
                                                                           
Revenues       $ 432,171     $ 374,511       $ 417,923     $ 1,239,287     $ 797,134
Cost of        301,555      258,880        293,356      870,830        544,217   
services
Gross profit   130,616       115,631         124,567       368,457         252,917
Selling,
general and    88,529        77,424          86,454        259,144         185,342
administrative
expenses
Amortization
of intangible  5,199        6,679          5,275        15,853         11,197    
assets
Operating      36,888        31,528          32,838        93,460          56,378
income
Interest       (3,257    )   (6,022    )     (4,198    )   (12,786     )   (10,680   )
expense, net
Write-off of   —            —              (14,958   )   (14,958     )   (813      ) 
loan costs
Income before  33,631        25,506          13,682        65,716          44,885
income taxes
Provision for  13,422       10,850         5,860        27,075         19,105    
income taxes
Income from
continuing     20,209        14,656          7,822         38,641          25,780
operations
Gain on sale
of
discontinued   —             —               —             14,412          —
operations,
net of tax
Income (loss)
from
discontinued   (59       )   847            (483      )   (951        )   2,668     
operations,
net of tax
Net income     $ 20,150     $ 15,503       $ 7,339      $ 52,102       $ 28,448  
                                                                           
Basic earnings
per common
share:
Income from
continuing     $ 0.38        $ 0.28          $ 0.15        $ 0.72          $ 0.58
operations
Income (loss)
from           —            0.02           (0.01     )   0.26           0.06      
discontinued
operations
               $ 0.38       $ 0.30         $ 0.14       $ 0.98         $ 0.64    
                                                                           
Diluted
earnings per
common share:
Income from
continuing     $ 0.37        $ 0.28          $ 0.14        $ 0.71          $ 0.56
operations
Income from
discontinued   —            0.01           —            0.25           0.06      
operations
               $ 0.37       $ 0.29         $ 0.14       $ 0.96         $ 0.62    
                                                                           
Number of
shares and
share
equivalents
used to
calculate
earnings per
share:
Basic          53,620       52,131         53,378       53,350         44,777    
Diluted        54,624       53,162         54,327       54,394         45,807    
                                                                           
^(1)Amounts differ from the previously reported numbers on our Form 10-Q for the period
ended September 30, 2012, due to the retrospective adjustment of amortization of the
identifiable intangible assets of Apex purchase price allocation, and the retrospective
presentation of discontinued operations related to the sale of Nurse Travel during 2013.


SUPPLEMENTAL SEGMENT FINANCIAL INFORMATION (Unaudited)

(In thousands)
                                                 
               Three Months Ended                   Nine Months Ended
               September 30,          June 30,    September 30,
               2013      2012       2013        2013        2012
Revenues:
Technology –
Apex          $ 246,369   $ 202,664   $ 233,446    $ 692,543     $ 301,167
Oxford         100,005    88,104     101,474     296,741      254,970
                346,374     290,768     334,920      989,284       556,137
                                                                   
Life Sciences   44,124      40,646      41,877       126,474       122,506
Physician       26,223      27,479      26,466       78,991        76,607
Healthcare     15,450     15,618     14,660      44,538       41,884
              $ 432,171   $ 374,511   $ 417,923    $ 1,239,287   $ 797,134
                                                                   
Gross profit:
Technology –
Apex          $ 69,448    $ 56,934    $ 63,896     $ 188,963     $ 83,917
Oxford         34,660     31,250     34,506      101,316      90,266
                104,108     88,184      98,402       290,279       174,183
                                                                   
Life Sciences   14,306      14,002      13,838       41,528        41,649
Physician       7,382       8,370       7,640        22,505        23,587
Healthcare     4,820      5,075      4,687       14,145       13,498
              $ 130,616   $ 115,631   $ 124,567    $ 368,457     $ 252,917
                                                                   

SELECTED CASH FLOW INFORMATION (Unaudited)

(In thousands)
                                                        
                         Three Months Ended                 Nine Months Ended
                         September 30,        June 30,    September 30,
                         2013     2012      2013        2013     2012
Cash (used in)
provided by             $ 43,621   $ 23,531   $ 26,752     $ 73,948   $ 14,639
operations
Capital expenditures    $ 4,965    $ 3,712    $ 4,543      $ 12,293   $ 10,883
                                                                        

SELECTED CONSOLIDATED BALANCE SHEET DATA (Unaudited)

(In thousands)
                                                  
                                    September 30,   June 30,
                                    2013            2013
Cash and cash equivalents           $    45,077     $  14,111
Accounts receivable, net            267,231         266,567
Goodwill and intangible assets, net 744,622         748,744
Total assets                        1,118,482       1,089,033
Current portion of long-term debt   10,000          10,250
Total current liabilities           139,065         127,077
Working capital                     193,256         174,844
Long-term debt                      347,813         359,063
Other long-term liabilities         28,598          28,694
Stockholders’ equity                603,006         574,199
                                                    

RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS AND EARNINGS PER SHARE
TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA PER DILUTED SHARE
(Unaudited)

(In thousands, except per share amounts)
                    
                    Three Months Ended
                    September 30,                                  
                    2013                   2012^(1)                June 30, 2013
Net income          $ 20,150    $ 0.37     $ 15,503   $ 0.29      $ 7,339     $ 0.14
Income (loss) from
discontinued        (59      )   —         847         0.01       (483     )   —
operations, net of
tax
Income from
continuing          20,209       0.37       14,656       0.28        7,822        0.14
operations
Interest expense,   3,257        0.05       6,022        0.11        4,198        0.08
net
Write-off of loan   —            —          —            —           14,958       0.27
costs
Provision for       13,422       0.25       10,850       0.20        5,860        0.11
income taxes
Depreciation        2,026        0.04       1,796        0.03        1,914        0.04
Amortization of     5,199       0.10      6,679       0.13       5,275       0.10
intangibles
EBITDA              44,113       0.81       40,003       0.75        40,027       0.74
Equity-based        4,201        0.08       3,059        0.06        3,486        0.06
compensation
Acquisition-related 264          —          784          0.01        251          —
costs
Strategic planning  248         —         —           —          405         0.01
costs
Adjusted EBITDA     $ 48,826    $ 0.89    $ 43,846    $ 0.82     $ 44,169    $ 0.81
                                                                                  
Weighted average
common and common
equivalent shares   54,624                 53,162                  54,327   
outstanding
(diluted)
                                                                                  

                               Nine Months Ended September 30,
                                2013                    2012^(1)            
Net income                      $ 52,102    $ 0.96     $ 28,448   $ 0.62
Income (loss) from
discontinued operations, net    13,461       0.25      2,668       0.06   
of tax
Income from continuing          38,641        0.71       25,780       0.56
operations
Interest expense, net           12,786        0.24       10,680       0.24
Write-off of loan costs         14,958        0.27       813          0.02
Provision for income taxes      27,075        0.50       19,105       0.42
Depreciation                    5,795         0.11       4,766        0.10
Amortization of intangibles     15,853       0.29      11,197      0.24   
EBITDA                          115,108       2.12       72,341       1.58
Equity-based compensation       10,237        0.19       6,518        0.15
Acquisition-related costs       676           0.01       9,838        0.21
Strategic planning costs        1,110        0.02      —           —      
Adjusted EBITDA                 $ 127,131    $ 2.34    $ 88,697    $ 1.94 
                                                                      
Weighted average common

and common equivalent           54,394                  45,807   

shares outstanding (diluted)
                                                                      

RECONCILIATION OF GAAP INCOME AND EPS TO NON-GAAP INCOME AND EPS (Unaudited)

(In thousands, except per share amounts)
                    
                    Three Months Ended
                    September 30,                                   June 30,
                    2013                   2012^(1)                2013
Net income          $ 20,150    $ 0.37     $ 15,503   $ 0.29      $ 7,339     $ 0.14
Income (loss) from
discontinued        (59      )   —         847         0.01       (483     )   —
operations, net of
tax
Income from
continuing          20,209       0.37       14,656       0.28        7,822        0.14
operations
Write-off of loan
costs related to    —            —          —            —           9,181        0.17
refinancing, net of
income taxes
Acquisition-related
costs, net of       159          0.01       649          0.01        143          —
income taxes
Strategic planning
expenses, net of    152         —         —           —          249         0.01
income taxes
Non-GAAP income
from continuing     $ 20,520    $ 0.38    $ 15,305    $ 0.29     $ 17,395    $ 0.32
operations
                                                                                  
Weighted average
common and common
equivalent shares   54,624                53,162                  54,327      
outstanding
(diluted)
                                                                                  

                                Nine Months Ended September 30,
                                 2013                   2012^(1)            
Net income                       $ 52,102   $ 0.96     $ 28,448   $ 0.62
Income (loss) from
discontinued operations, net     13,461      0.25      2,668       0.06   
of tax
Income from continuing           38,641       0.71       25,780       0.56
operations
Write-off of loan costs
related to refinancing, net of   9,181        0.17       701          0.02
income taxes
Acquisition-related costs, net   395          0.01       5,888        0.13
of income taxes
Strategic planning expenses,     682         0.01      —           —      
net of income taxes
Non-GAAP income from             $ 48,899    $ 0.90    $ 32,369    $ 0.71 
continuing operations
                                                                      
Weighted average common

and common equivalent            54,394                45,807   

shares outstanding (diluted)
                                                                      

CALCULATION OF ADJUSTED EARNINGS PER SHARE (Unaudited)

(In thousands, except per share amounts)
                                                          
                                        Three Months Ended   Nine Months Ended
                                        September 30, 2013
Non-GAAP income from continuing         $    20,520          $    48,899
operations ^(1)
Adjustments:
Amortization of intangible assets       5,199                15,853
^(2)
Cash tax savings on indefinite-lived    3,850                11,550
intangible assets ^(3)
Excess of capital expenditures over     (1,050         )     (3,150        )
depreciation, net of tax ^ (4)
Income from Continuing Operations -     $    28,519         $    73,152   
As Adjusted
                                                             
Earnings per Diluted Share from
Continuing Operations--                 $    0.52           $    1.34     

As Adjusted
                                                             
Weighted average common and common
equivalent shares outstanding           54,624              54,394        
(diluted)
                                                                           

(1) Non-GAAP income from continuing operations as calculated on preceding
page. Non-GAAP income from continuing operations excludes the write-off of
loan costs related to refinancing of the credit facility, acquisition-related
cost and strategic planning expenses.

(2) Amortization of identifiable intangible assets of acquired businesses.

(3) Cash tax savings on indefinite-lived intangible assets (goodwill and
trademarks related to acquisition of Apex Systems, Oxford and HealthCare
Partners) that are amortized and deductible in the determination of income
taxes, but not amortized for financial reporting purposes. These assets total
$593.1 million and are amortized (and deducted) for income tax purposes on a
straight-line basis over 15 years. The annual income tax deduction is $39.5
million and the annual after-tax cash savings are approximately $15.4 million,
assuming an estimated marginal combined federal and state income tax rate of
39 percent.

(4) Excess capital expenditures over depreciation is equal to one-quarter of
the estimated full year difference between capital expenditures (full year
estimate of $15.9 million) less depreciation (full year estimate of $9.0
million), tax affected using an estimated marginal combined federal and state
tax rate of 39 percent.

SUPPLEMENTAL FINANCIAL INFORMATION – REVENUES AND GROSS MARGINS (Unaudited)

(Dollars in thousands)
                                                                                                    
               Technology
               Apex          Oxford         Total          Life          Physician      Healthcare     Consolidated
                                                             Sciences
Revenues:
Q3 2013        $ 246,369      $ 100,005       $ 346,374      $ 44,124      $ 26,223       $ 15,450       $  432,171
Q2 2013        $ 233,446      $ 101,474       $ 334,920      $ 41,877      $ 26,466       $ 14,660       $  417,923
% Sequential   5.5        %   (1.4       )%   3.4        %   5.4       %   (0.9      )%   5.4       %    3.4        %
change
Q3 2012        $ 202,664      $ 88,104        $ 290,768      $ 40,646      $ 27,479       $ 15,618       $  374,511
%
Year-over-year 21.6       %   13.5       %    19.1       %   8.6       %   (4.6      )%   (1.1      )%   15.4       %
change
                                                                                                         
Gross margins:
Q3 2013        28.2       %   34.7       %    30.1       %   32.4      %   28.2      %    31.2      %    30.2       %
Q2 2013        27.4       %   34.0       %    29.4       %   33.0      %   28.9      %    32.0      %    29.8       %
Q3 2012        28.1       %   35.5       %    30.3       %   34.4      %   30.5      %    32.5      %    30.9       %
                                                                                                         
Average number
of staffing
consultants:
Q3 2013        694            548             1,242          181           93             96             1,612
Q2 2013        679            540             1,219          182           100            97             1,598
Q3 2012        650            512             1,162          166           103            83             1,514
                                                                                                                    

            Technology                                                                      
            Apex          Oxford       Total         Life          Physician     Healthcare    Consolidated
                                                       Sciences
Average
number of
customers:
Q3 2013     586            664           1,250         933           188           512           2,883
Q2 2013     588            679           1,267         916           177           491           2,851
Q3 2012     607            650           1,257         928           194           529           2,908
                                                                                                 
Top 10
customers
as a
percentage
of revenue:
Q3 2013     35.1       %   18.5      %   25.0      %   24.8      %   21.4      %   30.1      %   20.0       %
Q2 2013     34.1       %   20.4      %   24.1      %   25.1      %   22.3      %   28.8      %   19.3       %
Q3 2012     33.2       %   15.5      %   23.5      %   22.6      %   19.2      %   29.4      %   18.3       %

                                                                                                 
Average
bill rate:
Q3 2013     $ 60.40        $ 122.70      $ 70.00       $ 33.71       $ 182.71      $ 36.64       $  63.56
Q2 2013     $ 60.78        $ 123.43      $ 71.23       $ 34.28       $ 183.95      $ 37.14       $  64.80
Q3 2012     $ 59.10        $ 120.16      $ 69.43       $ 35.21       $ 181.59      $ 37.15       $  63.39
                                                                                                 
Gross
profit per
staffing
consultant:
Q3 2013     $ 100,000      $ 63,000      $ 84,000      $ 79,000      $ 79,000      $ 50,000      $  81,000
Q2 2013     $ 94,000       $ 64,000      $ 81,000      $ 76,000      $ 77,000      $ 48,000      $  78,000
Q3 2012     $ 88,000       $ 61,000      $ 76,000      $ 84,000      $ 82,000      $ 61,000      $  76,000
                                                                                                            

SUPPLEMENTAL FINANCIAL INFORMATION – KEY METRICS (Unaudited)
                             
                             Three Months Ended
                             September 30,     June 30,
                             2013               2013
Percentage of revenues:
Top ten clients              20.0      %        19.3      %
Direct hire/conversion       1.7       %        1.5       %
                                                
Bill rate:
% Sequential change          (1.9      %)       0.9       %
% Year-over-year change      0.3       %        —         %
                                                
Bill/Pay spread:
% Sequential change          (1.6      %)       1.0       %
% Year-over-year change      (0.3      %)       (3.3      %)
                                                
Average headcount:
Contract professionals (CP)  12,586             11,961
Staffing consultants (SC)    1,612              1,598
                                                
Productivity:
Gross profit per SC          81,000             $  78,000

Contact:

On Assignment, Inc.
Ed Pierce
Chief Financial Officer
(818) 878-7900
 
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