CALABASAS, Calif.--(BUSINESS WIRE)--On Assignment, Inc. (NYSE: ASGN), a leading global provider of
diversified professional staffing solutions, announced today that it
expects to record in the fourth quarter of 2017 a one-time, non-cash
income tax benefit of $30.5 million to $33.5 million ($0.58 to $0.64 per
diluted share) as a result of the recently enacted Tax Cuts and Jobs Act
(TCJA). The income tax benefit is mainly the result of the revaluation
of our net deferred income tax liabilities and an estimate of the
transitional tax on deemed repatriated foreign earnings.
As a result of this one-time income tax benefit, our financial estimates
for net income and Adjusted Net Income (a non-GAAP measure) and related
per share amounts have been updated for the fourth quarter of 2017. Our
net income estimate is now $61.4 to $66.2 million (compared with our
previously-announced estimate of $30.9 million to $32.7 million), and
our earnings per diluted share estimate is now $1.17 to $1.26 (compared
with our previously-announced estimate of $0.59 to $0.62). Our Adjusted
Net Income (a non-GAAP measure) estimate is now $69.4 million to $74.1
million (compared with our previously-announced estimate of $38.9
million to $40.6 million), and our Adjusted Net Income per diluted share
estimate is now $1.32 to $1.41 (compared with our previously-announced
estimate of $0.74 to $0.77). There are no other changes to our fourth
quarter financial estimates.
While the Company expects subsequent regulations and interpretations
associated with the TCJA to be released that will provide additional
guidance on application of the law, the Company currently estimates its
effective tax rate for 2018 will range between 25.5 percent and 27.5
percent.
About On Assignment
On Assignment, Inc. is a leading global provider of highly skilled,
hard-to-find professionals in the growing technology, life sciences, and
creative sectors, where quality people are the key to success. The
Company goes 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 its 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. The Company has a network of branch offices throughout the
United States, Canada and Europe. To learn more, visit www.onassignment.com.
Reasons for Presentation of Non-GAAP Financial Measures
Statements in this release 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
accounting principles generally accepted in the United States ("GAAP"),
and is intended to enhance an overall understanding of our current
financial performance. 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. Our press release on October 25,
2017 includes a reconciliation of each non-GAAP financial measure to the
most directly comparable GAAP financial measure. Below is a discussion
of our non-GAAP financial measures referenced in this release.
Non-GAAP net income (net income, less income (loss) from discontinued
operations, net of tax, plus, as applicable, refinancing costs,
acquisition, integration and strategic planning expenses, accretion of
fair value discount on contingent consideration, impairment charges, and
the tax effect of these items) provides a method for assessing our
operating results in a manner that is focused on the performance of our
core business on an ongoing basis. Adjusted Net Income (Non-GAAP net
income plus amortization of intangible assets, less income taxes on
amortization for financial reporting purposes not deductible for income
tax purposes) provides a method for assessing our operating results in a
manner that is focused on the performance of our core business on an
ongoing basis, adjusted for some of the cash flows associated with
amortization of intangible assets to more fully present the performance
of our acquisitions.
Safe Harbor
Certain of the above statements made in this news release 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 are not guarantees
of future performance, and actual results might differ materially. In
particular, the Company makes no assurances that the estimates 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 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, the successful implementation of our
five-year strategic plan, 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, 2016. We specifically disclaim any
intention or duty to update any forward-looking statements contained in
this news release.
Forward-looking statements include statements regarding the estimated
effects of tax legislation on the Company’s earnings for the three
months ended December 31, 2017 and on its 2018 effective tax rate. These
forward-looking statements consist of preliminary estimates, are based
on currently available information, as well as our current
interpretations, assumptions and expectations relating to tax
legislation, and are subject to change, possibly materially, as the
Company completes its year-end financial statements.
Contact:
On Assignment, Inc.
Ed Pierce
Chief Financial Officer
(818) 878-7900