Delaware
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000-20540
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95-4023433
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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26745 Malibu Hills Road, Calabasas, California
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91301
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(Address of principal executive offices)
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(Zip Code)
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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The following exhibit is furnished pursuant to Item 2.02:
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99.1
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Press release of On Assignment, Inc. dated April 28, 2011, reporting its financial results for the first quarter of 2011.
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On Assignment, Inc. | ||
Date: April 28, 2011
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/s/ James L. Brill | |
James L. Brill | ||
Sr. Vice President, Finance and Chief Financial Officer | ||
On Assignment Reports First Quarter 2011 Results
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Revenues up 34% Year-over-Year and 7% sequentially
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Adjusted EBITDA up 140% Year-over-Year
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EPS $0.08 vs. ($0.01) in the 1st Quarter of 2010
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-
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Revenues for the first quarter of 2011 were $129.4 million, up 34% year-over-year and up 7% from the preceding quarter.
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-
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Gross Margin was 33.3% compared with 32.0% in the first quarter of 2010.
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-
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Adjusted EBITDA (a non-GAAP measurement defined below) was $10.5 million, up 140% year-over-year.
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-
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Adjusted EBITDA margin (Adjusted EBITDA as a % of revenues) for the quarter was 8.1% compared with 4.6% in the first quarter of 2010.
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-
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Net Income was $3.2 million, or $0.08 per diluted share.
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-
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Completed the acquisition of Valesta, a Belgian clinical research staffing company which contributed $2 million in revenue in the quarter.
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·
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Revenues of $142 million to $145 million
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·
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Gross Margin of approximately 34%
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·
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SG&A of approximately $39 million which excludes any acquisition related expenses but includes depreciation of approximately $1.6 million, amortization of approximately $0.6 million and approximately $1.6 million in equity-based compensation expense
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·
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Adjusted EBITDA of $13 million to $14 million
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·
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Net income of $4.8 million to $5.4 million
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·
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Earnings per diluted share of $0.13 to $0.14
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Quarter Ended
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|||||||||||
March 31,
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December 31,
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||||||||||
2011
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2010
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2010
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|||||||||
Revenues
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$ | 129,438 | $ | 96,313 | $ | 121,152 | |||||
Cost of services
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86,284 | 65,490 | 78,918 | ||||||||
Gross profit
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43,154 | 30,823 | 42,234 | ||||||||
Selling, general and
administrative expenses
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36,755 | 29,831 | 35,374 | ||||||||
Impairment of goodwill
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― | ― | 15,399 | ||||||||
Operating income (loss)
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6,399 | 992 | (8,539) | ||||||||
Interest expense
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(730 | ) | (1,560 | ) | (3,541) | ||||||
Interest income
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17 | 32 | 70 | ||||||||
Income (loss) before income taxes
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5,686 | (536 | ) | (12,010) | |||||||
Income tax provision (benefit)
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2,522 | (234 | ) | 1,688 | |||||||
Net income (loss)
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$ | 3,164 | $ | (302 | ) | $ | (13,698) | ||||
Earnings (loss) per share
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|||||||||||
Basic
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$ | 0.09 | $ | (0.01 | ) | $ | (0.38) | ||||
Diluted
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$ | 0.08 | $ | (0.01 | ) | $ | (0.38) | ||||
Number of shares and share equivalents used to calculate earnings per share:
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|||||||||||
Basic
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36,623 | 36,361 | 36,421 | ||||||||
Diluted
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37,429 | 36,361 | 36,421 | ||||||||
Quarter Ended
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|||||||||||
March 31,
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December 31,
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||||||||||
2011
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2010
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2010
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|||||||||
Revenues:
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|||||||||||
Life Sciences
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$ | 32,957 | $ | 23,050 | $ | 30,874 | |||||
Healthcare Staffing
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19,844 | 18,576 | 18,548 | ||||||||
Physician Staffing
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16,518 | 18,871 | 17,518 | ||||||||
IT and Engineering
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60,119 | 35,816 | 54,212 | ||||||||
Consolidated revenues
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$ | 129,438 | $ | 96,313 | $ | 121,152 | |||||
Gross profit:
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|||||||||||
Life Sciences
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$ | 11,270 | $ | 7,294 | $ | 11,173 | |||||
Healthcare Staffing
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5,627 | 4,969 | 5,488 | ||||||||
Physician Staffing
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5,299 | 5,989 | 5,977 | ||||||||
IT and Engineering
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20,958 | 12,571 | 19,596 | ||||||||
Consolidated gross profit
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$ | 43,154 | $ | 30,823 | $ | 42,234 |
Quarter Ended
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|||||||||||
March 31,
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December 31,
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||||||||||
2011
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2010
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2010
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|||||||||
Cash provided by operations
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$ | 6,274 | $ | 6,412 | $ | 6,459 | |||||
Capital expenditures
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2,650 | 1,320 | 2,108 |
As of
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|||||||||||
March 31,
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December 31,
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||||||||||
2011
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2010
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2010
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|||||||||
Cash and cash equivalents
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$ | 15,821 | $ | 30,250 | $ | 18,409 | |||||
Accounts receivable, net
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74,924 | 50,375 | 62,518 | ||||||||
Intangible assets, net
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246,985 | 227,712 | 224,890 | ||||||||
Total assets
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376,179 | 346,711 | 341,116 | ||||||||
Current portion of long-term debt
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5,000 | ― | 5,000 | ||||||||
Current liabilities
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54,899 | 35,371 | 45,050 | ||||||||
Long-term debt
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73,500 | 77,913 | 61,750 | ||||||||
Other long-term liabilities
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23,242 | 6,928 | 14,829 | ||||||||
Stockholders’ equity
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224,538 | 226,499 | 219,487 |
Quarter Ended
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|||||||||||||||||||||||
March 31,
2011
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March 31,
2010
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December 31,
2010
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Net income (loss)
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$ | 3,164 | $ | 0.08 | $ | (302 | ) | $ | (0.01 | ) | $ | (13,698 | ) | $ | (0.38) | ||||||||
Interest expense, net
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Interest, net
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713 | 0.02 | 1,528 | 0.04 | 1,263 | 0.04 | |||||||||||||||||
Write-off of deferred loan costs
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― | ― | ― | ― | 2,208 | 0.06 | |||||||||||||||||
Income tax provision (benefit)
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2,522 | 0.07 | (234 | ) | (0.01 | ) | 1,688 | 0.05 | |||||||||||||||
Depreciation
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1,548 | 0.04 | 1,425 | 0.04 | 1,478 | 0.04 | |||||||||||||||||
Amortization of intangibles
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416 | 0.01 | 625 | 0.02 | 520 | 0.01 | |||||||||||||||||
EBITDA
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8,363 | 0.22 | 3,042 | 0.08 | (6,541 | ) | (0.18) | ||||||||||||||||
Equity-based compensation
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1,625 | 0.04 | 1,334 | 0.04 | 2,431 | 0.07 | |||||||||||||||||
Impairment of goodwill
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― | ― | ― | ― | 15,399 | 0.41 | |||||||||||||||||
Acquisition costs expensed
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552 | 0.02 | 23 | ― | 311 | 0.01 | |||||||||||||||||
Adjusted EBITDA
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$ | 10,540 | $ | 0.28 | $ | 4,399 | $ | 0.12 | $ | 11,600 | $ | 0.31 | |||||||||||
Weighted average common and common equivalent shares outstanding
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Basic
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36,623 | 36,361 | 36,421 | ||||||||||||||||||||
Diluted
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37,429 | 36,956 | 37,321 |
Estimated Range of Results
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Quarter Ending
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|||||||
June 30, 2011
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Net income
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$ | 4,800 | $ | 5,400 | |||
Interest expense
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800 | 800 | |||||
Income tax provision
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3,600 | 4,000 | |||||
Depreciation and amortization
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2,200 | 2,200 | |||||
EBITDA
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11,400 | 12,400 | |||||
Equity-based compensation
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1,600 | 1,600 | |||||
Adjusted EBITDA
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$ | 13,000 | $ | 14,000 | |||
Healthcare
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Life Sciences
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Allied Healthcare
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Nurse Travel
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Total Healthcare
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Physician Staffing
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IT and Engineering
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Consolidated
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Revenues:
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Q1 2011 | $ | 32,957 | $ | 10,140 | $ | 9,704 | $ | 19,844 | $ | 16,518 | $ | 60,119 | $ | 129,438 | ||||||||||||||||
Q4 2010 | $ | 30,874 | $ | 10,060 | $ | 8,488 | $ | 18,548 | $ | 17,518 | $ | 54,212 | $ | 121,152 | ||||||||||||||||
% Sequential Change
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6.7 | % | 0.8 | % | 14.3 | % | 7.0 | % | (5.7 | %) | 10.9 | % | 6.8 | % | ||||||||||||||||
Q1 2010 | $ | 23,050 | $ | 9,564 | $ | 9,012 | $ | 18,576 | $ | 18,871 | $ | 35,816 | $ | 96,313 | ||||||||||||||||
% Year-over-Year Change
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43.0 | % | 6.0 | % | 7.7 | % | 6.8 | % | (12.5 | %) | 67.9 | % | 34.4 | % | ||||||||||||||||
Gross Margins:
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Q1 2011 | 34.2 | % | 31.3 | % | 25.2 | % | 28.4 | % | 32.1 | % | 34.9 | % | 33.3 | % | ||||||||||||||||
Q4 2010 | 36.2 | % | 32.7 | % | 25.9 | % | 29.6 | % | 34.1 | % | 36.1 | % | 34.9 | % | ||||||||||||||||
Q1 2010 | 31.6 | % | 30.8 | % | 22.4 | % | 26.7 | % | 31.7 | % | 35.1 | % | 32.0 | % |
SUPPLEMENTAL FINANCIAL INFORMATION – KEY METRICS
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Quarter Ended
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March 31,
2011
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December 31,
2010
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||||||
Percentage of revenues:
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|||||||
Top ten clients
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7.0% | 7.2% | |||||
Direct hire/conversion
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3.3% | 3.4% | |||||
Bill rate:
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% Sequential change
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2.2% | 1.8% | |||||
% Year-over-year change
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6.3% | 2.7% | |||||
Bill/Pay spread:
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% Sequential change
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2.7% | 1.6% | |||||
% Year-over-year change
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5.3% | 1.2% | |||||
Average headcount:
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Contract professionals (CP)
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4,092 | 3,955 | |||||
Staffing consultants (SC)
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758 | 728 | |||||
Productivity:
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Gross profit per SC
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$ | 57,000 | $ | 58,000 | |||