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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Item 2.02 Results of Operations and Financial Condition.
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Item 9.01 Financial Statements and Exhibits.
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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 August 3, 2011, reporting its financial results for the second quarter of 2011.
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On Assignment Reports Second Quarter 2011 Results
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Revenues up 38% Year-over-Year and 11% sequentially
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Adjusted EBITDA up 104% Year-over-Year
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EPS $0.16 vs. $0.03 in the 2nd Quarter of 2010
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-
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Revenues for the second quarter of 2011 were $143.7 million, up 38% year-over-year and 11% from the preceding quarter.
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-
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Gross Margin was 34.0% compared with 33.8% in the second quarter of 2010.
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-
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Adjusted EBITDA (a non-GAAP measurement defined below) was $14.8 million, up 104% year-over-year.
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-
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Adjusted EBITDA margin (Adjusted EBITDA as a % of revenues) for the quarter was 10.3% compared with 7.0% in the second quarter of 2010.
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-
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Net Income was $5.9 million, or $0.16 per diluted share for the quarter compared with $0.9 million, or $0.03 per diluted share, in the second quarter of 2010.
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-
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Subsequent to the end of the quarter, completed the acquisition of HeathCare Partners, a physician staffing firm based in Atlanta, and announced the appointment of Christian Rutherford as President, Vista Staffing Solutions.
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·
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Revenues of $155 million to $158 million
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·
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Gross Margin of approximately 34.1%
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·
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SG&A of approximately $41.0 million which includes $150,000 in acquisition-related expenses, depreciation of approximately $1.7 million, amortization of approximately $650,000 and approximately $1.7 million in equity-based compensation expense
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·
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Adjusted EBITDA of $16 million to $17 million
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·
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Net income of $6.4 million to $7.0 million
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·
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Earnings per diluted share of $0.17 to $0.19
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Three Months Ended
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Six Months Ended
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|||||||||||||||||||
June 30, 2011
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June 30, 2010
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March 31, 2011
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June 30, 2011
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June 30, 2010
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||||||||||||||||
Revenues
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$ | 143,683 | $ | 104,459 | $ | 129,438 | $ | 273,121 | $ | 200,772 | ||||||||||
Cost of services
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94,889 | 69,163 | 86,284 | 181,173 | 134,653 | |||||||||||||||
Gross profit
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48,794 | 35,296 | 43,154 | 91,948 | 66,119 | |||||||||||||||
Selling, general and
administrative expenses
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37,999 | 31,964 | 36,755 | 74,754 | 61,795 | |||||||||||||||
Operating income
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10,795 | 3,332 | 6,399 | 17,194 | 4,324 | |||||||||||||||
Interest expense
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(784 | ) | (1,607 | ) | (730 | ) | (1,514 | ) | (3,167 | ) | ||||||||||
Interest income
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4 | 32 | 17 | 21 | 64 | |||||||||||||||
Income before income taxes
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10,015 | 1,757 | 5,686 | 15,701 | 1,221 | |||||||||||||||
Income tax provision
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4,150 | 817 | 2,522 | 6,672 | 583 | |||||||||||||||
Net income
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$ | 5,865 | $ | 940 | $ | 3,164 | $ | 9,029 | $ | 638 | ||||||||||
Earnings per share:
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||||||||||||||||||||
Basic
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$ | 0.16 | $ | 0.03 | $ | 0.09 | $ | 0.25 | $ | 0.02 | ||||||||||
Diluted
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$ | 0.16 | $ | 0.03 | $ | 0.08 | $ | 0.24 | $ | 0.02 | ||||||||||
Number of shares and share equivalents used to calculate earnings per share:
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||||||||||||||||||||
Basic
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36,971 | 36,427 | 36,623 | 36,798 | 36,394 | |||||||||||||||
Diluted
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37,718 | 37,150 | 37,429 | 37,623 | 37,165 |
Three Months Ended
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Six Months Ended
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||||||||||||||||||
June 30,
2011
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June 30,
2010
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March 31,
2011
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June 30,
2011
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June 30,
2010
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|||||||||||||||
Revenues:
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Life Sciences
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$ | 39,626 | $ | 25,511 | $ | 32,957 | $ | 72,583 | $ | 48,561 | |||||||||
Healthcare Staffing
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21,736 | 19,300 | 19,844 | 41,580 | 37,876 | ||||||||||||||
Physician Staffing
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17,002 | 18,417 | 16,518 | 33,520 | 37,288 | ||||||||||||||
IT and Engineering
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65,319 | 41,231 | 60,119 | 125,438 | 77,047 | ||||||||||||||
Consolidated revenues
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$ | 143,683 | $ | 104,459 | $ | 129,438 | $ | 273,121 | $ | 200,772 | |||||||||
Gross profit:
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Life Sciences
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$ | 13,592 | $ | 8,115 | $ | 11,270 | $ | 24,862 | $ | 15,409 | |||||||||
Healthcare Staffing
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6,157 | 5,752 | 5,627 | 11,784 | 10,721 | ||||||||||||||
Physician Staffing
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5,633 | 6,280 | 5,299 | 10,932 | 12,269 | ||||||||||||||
IT and Engineering
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23,412 | 15,149 | 20,958 | 44,370 | 27,720 | ||||||||||||||
Consolidated gross profit
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$ | 48,794 | $ | 35,296 | $ | 43,154 | $ | 91,948 | $ | 66,119 |
Three Months Ended
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Six Months Ended
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||||||||||||||||||
June 30,
2011
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June 30,
2010
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March 31,
2011
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June 30,
2011
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June 30,
2010
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Cash provided by operations
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$ | 6,411 | $ | 8,061 | $ | 5,778 | $ | 12,189 | $ | 14,473 | |||||||||
Capital expenditures
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2,022 | 1,516 | 2,650 | 4,672 | 2,836 |
As of
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|||||||||||
June 30,
2011
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June 30,
2010
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March 31,
2011
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Cash and cash equivalents
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$ | 19,183 | $ | 30,483 | $ | 15,821 | |||||
Accounts receivable, net
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80,831 | 52,237 | 74,924 | ||||||||
Intangible assets, net
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246,766 | 234,405 | 246,985 | ||||||||
Total assets
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383,673 | 351,194 | 376,179 | ||||||||
Current portion of long-term
debt
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5,000 | — | 5,000 | ||||||||
Current liabilities
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60,246 | 35,827 | 54,899 | ||||||||
Long-term debt
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72,250 | 77,913 | 73,500 | ||||||||
Other long-term liabilities
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18,249 | 9,552 | 23,159 | ||||||||
Stockholders’ equity
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232,928 | 227,902 | 224,621 |
Three Months Ended
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June 30,
2011
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June 30,
2010
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March 31,
2011
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Net income
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$ | 5,865 | $ | 0.16 | $ | 940 | $ | 0.03 | $ | 3,164 | $ | 0.08 | |||||||||||
Interest expense, net
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780 | 0.02 | 1,575 | 0.04 | 713 | 0.02 | |||||||||||||||||
Income tax provision
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4,150 | 0.11 | 817 | 0.02 | 2,522 | 0.07 | |||||||||||||||||
Depreciation
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1,686 | 0.04 | 1,477 | 0.04 | 1,548 | 0.04 | |||||||||||||||||
Amortization of intangibles
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554 | 0.02 | 448 | 0.01 | 416 | 0.01 | |||||||||||||||||
EBITDA
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13,035 | 0.35 | 5,257 | 0.14 | 8,363 | 0.22 | |||||||||||||||||
Equity-based compensation
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1,621 | 0.04 | 1,885 | 0.05 | 1,625 | 0.04 | |||||||||||||||||
Acquisition costs expensed
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175 | ― | 120 | ― | 552 | 0.02 | |||||||||||||||||
Adjusted EBITDA
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$ | 14,831 | $ | 0.39 | $ | 7,262 | $ | 0.19 | $ | 10,540 | $ | 0.28 |
Six Months Ended
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June 30,
2011
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June 30,
2010
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Net income
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$ | 9,029 | $ | 0.24 | $ | 638 | $ | 0.02 | |||||||
Interest expense, net
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1,493 | 0.04 | 3,103 | 0.08 | |||||||||||
Income tax provision
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6,672 | 0.18 | 583 | 0.01 | |||||||||||
Depreciation
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3,234 | 0.08 | 2,902 | 0.08 | |||||||||||
Amortization of intangibles
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970 | 0.03 | 1,073 | 0.03 | |||||||||||
EBITDA
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21,398 | 0.57 | 8,299 | 0.22 | |||||||||||
Equity-based compensation
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3,246 | 0.08 | 3,219 | 0.09 | |||||||||||
Acquisition costs expensed
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727 | 0.02 | 143 | ― | |||||||||||
Adjusted EBITDA
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$ | 25,371 | $ | 0.67 | $ | 11,661 | $ | 0.31 |
Estimated Range of Results
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Quarter Ending
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September 30, 2011
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Net income
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$ | 6,400 | $ | 7,000 | |||
Interest expense
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800 | 800 | |||||
Income tax provision
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4,700 | 5,100 | |||||
Depreciation and amortization
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2,350 | 2,350 | |||||
EBITDA
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14,250 | 15,250 | |||||
Equity-based
compensation
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1,700 | 1,700 | |||||
Acquisition expenses
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150 | 150 | |||||
Adjusted EBITDA
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$ | 16,100 | $ | 17,100 |
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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Q2 2011 | $ | 39,626 | $ | 10,915 | $ | 10,821 | $ | 21,736 | $ | 17,002 | $ | 65,319 | $ | 143,683 | ||||||||
Q1 2011 | $ | 32,957 | $ | 10,140 | $ | 9,704 | $ | 19,844 | $ | 16,518 | $ | 60,119 | $ | 129,438 | ||||||||
% Sequential change
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20.2% | 7.6% | 11.5% | 9.5% | 2.9% | 8.6% | 11.0% | |||||||||||||||
Q2 2010 | $ | 25,511 | $ | 9,761 | $ | 9,539 | $ | 19,300 | $ | 18,417 | $ | 41,231 | $ | 104,459 | ||||||||
% Year-over-year change
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55.3% | 11.8% | 13.4% | 12.6% | (7.7% | ) | 58.4% | 37.5% | ||||||||||||||
Gross margins:
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Q2 2011 | 34.3% | 32.5% | 24.2% | 28.3% | 33.1% | 35.8% | 34.0% | |||||||||||||||
Q1 2011 | 34.2% | 31.3% | 25.2% | 28.4% | 32.1% | 34.9% | 33.3% | |||||||||||||||
Q2 2010 | 31.8% | 33.0% | 26.5% | 29.8% | 34.1% | 36.7% | 33.8% |
Three Months Ended
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|||||||
June 30,
2011
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March 31,
2011
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Percentage of revenues:
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Top ten clients
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7.8% | 7.0% | |||||
Direct hire/conversion
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3.1% | 3.3% | |||||
Bill rate:
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% Sequential change
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(0.4% | ) | 2.2% | ||||
% Year-over-year change
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4.6% | 6.3% | |||||
Bill/Pay spread:
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% Sequential change
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0.9% | 2.7% | |||||
% Year-over-year change
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6.1% | 5.3% | |||||
Average headcount:
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Contract professionals (CP)
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4,421 | 4,092 | |||||
Staffing consultants (SC)
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776 | 758 | |||||
Productivity:
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Gross profit per SC
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$ | 63,000 | $ | 57,000 |