baird 2020 global consumer, technology & services ...€¦ · 03/06/2020 · focus on...

1©ASGN Incorporated. All rights reserved.

June 3, 2020

Baird 2020 Global Consumer,

Technology & Services Conference

© ASGN Incorporated. All rights reserved.


Safe Harbor

Certain statements made in this presentation 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 include statements regarding

our anticipated financial and operating performance.

All statements in this presentation, 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, we make no assurances

that the proposed revenue scenarios outlined in this presentation will be achieved. Additional

examples of forward-looking statements in this presentation include, without limitation,

statements regarding the expected impact of the COVID-19 global pandemic on our

competitive position and demand for our services; our ability to attract, train and retain qualified

staffing consultants, 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, 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, 2019, as filed with

the SEC on March 2, 2020. We specifically disclaim any intention or duty to update any

forward-looking statements contained in this presentation.

2


3

ASGN At a Glance (NYSE: ASGN)

• U.S. addressable market of $290 billion3

• Additional opportunities in Europe

• Early mover in the “shared economy”

• Favorable tailwinds: digital transformation;

advantageous legislation; improving

government market conditions

• 25 consecutive quarters of above

industry growth

• $4.0 billion in LTM revenue1

• $455.4 million in LTM Adj. EBITDA1,2

• $293.0 million in LTM free cash flow1

• 13,200 customer relationships

• Relationships with ~350 of Fortune 500

• ~25,000 billable professionals

Company supports leading corporate

enterprises and government organizations in

developing, implementing and operating

critical IT and business solutions through an

integrated offering of professional staffing and

IT solutions

Our Company Our CustomersOur Markets

Deep, Trusted Relationships Track Record of Excellence Growing Addressable Market

One of the foremost providers of IT and

professional services in the technology,

digital, creative, engineering and life

sciences fields across commercial and

government sectors

Commercial IT Services and Federal

Government IT Solutions each offer

industry knowledge and depth, scalable

solutions and expansive geographic reach


4

Investor Highlights

• Increasingly IT-Centric – Business model has evolved in line with client needs and expectations to

focus on higher-end, higher-margin IT consulting services and solutions capabilities.

• Unique Go-To Market Strategy – Diverse client base with a focus on expanding the large account

portfolio (over 50% of the Fortune 500 and key Federal Defense & Civilian government agencies),

which is often a more stable source of revenue and represents clients who are quicker adopters of

new technologies.

• Significant Exposure to Federal Marketplace – Over 20% of revenues generated from Federal

and Civilian government agencies, clients whose industry is typically better insulated from economic

uncertainty than its commercial industry counterparts.

• Strong Balance Sheet & Liquidity – Solid free cash flow generation and strategic actions taken in

Q4 2019 to improve capital structure, provide flexibility to direct funds in best interests of the

Company, its clients and its stockholders.

• Flexible Cost Structure – Variable expense structure provides high conversion of free cash flow to

Adjusted EBITDA, providing stability to business model.

• Track Record in M&A – History of successfully integrating tuck-in and transformational acquisitions

that have broadened the Company’s client base and added key IT capabilities and client contracts.

• Experienced Management Team – Led by industry experts who have successfully managed the

business and its clients during both positive and negative market cycles.


ASGN: A Leader in High-End IT Services & Solutions

Strategy

Architecture

Design

Systems Deployment

(incl. upgrades)

Service Centers

Technical Staffing

Federal Government IT

Solutions OfferingsMission critical IT services for the

Federal Government

Commercial IT

Service Offerings

5


Segment Overview

APEX SEGMENT OXFORD SEGMENT ECS SEGMENT

SERVICE OFFERINGS

Mission critical high-end IT

solutions for the Federal

Government

High-end IT, Engineering and Life

Sciences skills and solutions

Permanent Placement solutions

Information Technology, Engineering,

Finance & Accounting, Healthcare

Mission critical IT skills and

solutions

Creative/Digital skills and solutions

LTM REVENUES1

$604.7 Million15.2% of Consolidated Revenues

$2.5 Billion63.7% of Consolidated Revenues

$842.9 Million21.1% of Consolidated Revenues

6

Federal Government

IT SolutionsCommercial IT Services


Commercial IT Services Market

Technology TelecomFinancial

InstitutionsBusiness

Services

Healthcare

& Life

Sciences

Cloud Solutions

Cybersecurity

Workforce

Management

Application

Development

Science &

Engineering

Massive addressable market

Deep decades-long client relationships with major Fortune 500 companies

Lower cost of services vs. full-deliverable bench consulting model

AerospaceConsumer

& Industrial

Technology: With growing number of clients re-shoring IT support capabilities, Mexico Delivery Center gaining traction with US clients

Healthcare & Life Sciences: Demand for digital transformation (mobile/customer experience) continues to be focus of clients longer-term while hospital networks focused on COVID-19 near-term

Telecom: 5G, Integration/M&A, COVID-19 related WFH initiatives, continued push into SOW (Consulting) and Federal business in both near- and long-term. Media sector weakness expected near-term

Business Services: Capitalizing on client need for digital transformation, cloud, and analytics initiatives. Tailwinds from higher education business to online model

Aerospace: Clients adopting emerging technologies such as AI, cloud, digital, and accelerating cybersecurity and IT modernization

Financial Institutions: Stimulus funding at commercial banks creating heightened demand to implement new IT initiatives

Consumer & Industrial: revenues up double digits in Q1, despite weakness in Retail, Energy and Hospitality

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Federal Government IT Solutions Market

Defense Federal

CivilianOther

Intelligence and

National Security

Cloud Solutions

Cybersecurity

Machine Learning

IT Modernization

Science & Engineering

Massive addressable market

Ample and increasing funding; durable mission requirements

Profitable countercyclicality

Deep decades-long client relationships

Accelerating cyber threats drive funding and demand across government and commercial customers

Drive to the cloud impacts all technology and business transformation efforts, with cloud-hosted, on premise, and hybrid solutions depending on customer and mission needs

AI and machine learning sun is rising as DoD, national security, federal civilian, and commercial customers demand actionable and scalable data approaches and decision intelligence at scale and at the edge of technology

Pent-up need for IT system modernization and digital transformation to achieve mission outcomes, productivity gains, and cost savings across economic cycles

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COVID-19 Update

Q1 2020 Impact

• Solid first quarter 2020 results despite downturn beginning in mid-March

• Through February growth tracked at or above internal estimates

• March saw leveling off or retraction of commercial market revenues, while

Federal Government business remained strong

Proactive

Measures Taken

• Implemented business continuity plans prioritizing safety and health of employees

• Shifted 100% internal workforce and 80% billable consultants to remote; only

small portion of essential staff remain on site

• Repaid all borrowings under $250M revolver as of April 30, 2020; now have full

availability

• Paused share repurchase program in the quarter

ASGN is Strongly

Positioned for the

Future

• Increasingly IT-centric with expanded high-end solutions capabilities

• Expanded large account portfolio and exposure to Federal government

• Highly experienced & capable management team

• Smart capital deployment – solid liquidity and free cash flow generation

ASGN is better positioned now to manage through an economic downturn

than at any other time in the Company’s history.9

Financial Review


Key Takeaways — Q1 2020

11

$103.5 Million 6.6% Y-Y

$48.8 Million 33.9% Y-Y

$57.7 Million 16.8% Y-Y

$990.5 Million 7.2% Y-Y

1.4 to 1.0 Q1 2020

Solid Performance in Q1: • Financial Results were within guidance ranges

• Growth led by above-market performance at ECS along

with growth by the Apex Segment

Blackstone Federal Acquisition:• Closed $85 million acquisition on January 24, adding prime

contract pathways within the Department of Homeland

Security (DHS)

• Fully integrated into the ECS business at the completion of

Q1

Successful Strategy Execution:• Evolution to IT Services

• Expansion of large-account portfolio

• Increased exposure to the Federal government marketplace

• Continued organic growth combined with select, strategic

tuck-in acquisitions

• Growth in higher-end, higher-margin IT consulting services

and solutions for commercial and government clients

Achievements Driven By:• Access to highly-skilled labor and differentiated deployment

model

• Capabilities in advanced Federal IT solutions

• Disciplined approach to capital allocation

REVENUES

ADJUSTED NET INCOME

ADJUSTED EBITDA

FREE CASH FLOW

BOOK-TO-BILL RATIO5 (ECS SEGMENT)

LEVERAGE RATIO4

1.14 to 1.0 Senior Secured Leverage Ratio

$43.8 Million 25.5% Y-Y

NET INCOME


$172 $172

$259 $281

$293

7.1%6.6%

7.6% 7.1% 7.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

$-

$50

$100

$150

$200

$250

$300

$350

2016 2017 2018 2019 LTM

Free Cash Flow & Margin

$285 $311

$403 $449 $455

2016 2017 2018 2019 LTM

Adjusted EBITDA & MarginUSD in millions

11.7% 11.9%

11.9% 11.4% 11.4%

$795 $850

$1,024

$1,130 $1,147

2016 2017 2018 2019 LTM

Gross Profit & MarginUSD in millions

32.6% 32.4%

30.1%28.8%

28.7%$2,440 $2,626

$3,400

$3,924 $3,991

2016 2017 2018 2019 LTM

RevenuesUSD in millions

Summary of Financial Results

Consistent above-industry growth, stable margins and high free cash flow generation

USD in millions

12


13

Illustrative Financial Scenarios — Q2 2020

All illustrative scenarios assume–

• High-single digit year-over-year revenue growth for ECS Segment (ECS accounted for 21.5 percent of total revenues in Q1 2020)

• Decline of over 50.0 percent year-over-year in permanent placement and conversion fees

• Reductions in costs of services, incentive compensation (commissions and bonuses), headcount, travel & entertainment, outside services costs,

costs for events and discretionary spending

• No one-time charges are anticipated in these scenarios

Revenue decline of 5.0 percent assumes the low point (trough) of weekly Assignment Revenue occurs in late May and improves slightly

week-to-week thereafter

Revenue decline of 10.0 percent assumes weekly Assignment Revenue declines occur through the end of the quarter

The table below is provided for illustrative purposes only and is not intended to provide guidance as to the outcome of the Company’s

results for the second quarter. The table estimates what the Company’s financial outcomes could look like if such revenue scenarios were

to occur, and are solely for the purposes of illustrating financial effects of actions that would be taken to manage operating costs and

expenses.

Quarter Ended Quarter Ending June 30, 2020

June 30, Year-over-Year Decline in Revenues

($'s in millions) 2019 -5.0% -7.5% -10.0%

Revenues 972.3$ 923.7$ 899.7$ 875.3$

Permanent Placement as a % of Revenues 3.8% 1.9% 2.0% 2.0%

Gross Margin 29.3% 27.7% 27.6% 27.5%

Contract Gross Margin1 26.5% 26.3% 26.2% 26.2%

Adjusted SG&A Expense Margin2 17.9% 17.2% 17.6% 17.9%

Adjusted EBITDA Margin 11.7% 10.6% 10.2% 9.8%

Free Cash Flow as a percent of Adjusted EBITDA 77.3%

Senior Secured Debt (Term B Facility) - Outstanding 490.8$ 490.8$ 490.8$

Availability under $250.0 million Revolving Credit3 250.0$ 250.0$ 250.0$

Senior Secured Leverage Ratio (end of period)4 1.12x 1.14x 1.15x

t

105.0% ~ 135.0%


Second Quarter 2020 Scenario Inputs

14

Depreciation

Stock Based Compensation

Amortization of Intangibles

Interest Expense

Effective Tax Rate9

Diluted Outstanding

Shares

27.0%

63.75

$’s and shares in millions

$1.2 – Cost of Services

$8.1 – SG&A$9.3

Billable Days10

$12.6

53.1

FY 2020

FY 2019

Q1 Q2 Q3 Q4

63.00 63.75 64.00 60.50

62.00 64.00 63.00 60.50

$8.8

$10.3


Repurchases are an important component of the

capital allocation strategy.

Strong free cash flow underpins borrowing

capacity and ability to quickly de-lever. ASGN

has repaid all borrowings under its $250M

revolving credit facility and now has full

availability.

Track record of successfully integrating tuck-in and

transformative acquisitions. M&A remains a key

component of Company’s long-term growth

strategy; targeting investments in commercial and

government markets that add key services, clients

or contracts.

Disciplined Approach to Capital Allocation

15

ASGN’s free cash flow was $48.8 million at 3/31/20. The Company allocates its free cash flow among organic investments, M&A, debt

repayment and share repurchases based on what is in the best interests of employees, clients and stockholders, at any given time.

Leverage Ratio was 1.14x4 TTM EBITDA at 3/31/20, down from 3.7x TTM EBITDA at 4/2/18 (ECS acquisition date).

Strong Free

Cash Flow

Generation &

Borrowing

Capacity

M&A

Debt

Repayment

Share

Buybacks

Appendix


2020

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1

Revenues

Consolidated

Assignment 594.5$ 620.0$ 634.4$ 647.5$ 2,496.4$ 650.3$ 684.0$ 705.6$ 720.6$ 2,760.5$ 721.6$ 744.4$ 760.2$ 760.2$ 2,986.3$ 744.0$

Permanent Placement 32.0 33.3 32.7 31.6 129.6 34.9 39.4 36.8 35.2 146.3 34.1 37.3 36.6 31.5 139.4 33.8

ECS - - - - - - 155.1 164.0 173.9 493.0 168.0 190.6 206.1 233.5 798.2 212.7

626.5$ 653.3$ 667.1$ 679.1$ 2,626.0$ 685.2$ 878.5$ 906.4$ 929.7$ 3,399.8$ 923.7$ 972.3$ 1,002.9$ 1,025.2$ 3,923.9$ 990.5$

Apex Segment

Assignment 471.3$ 491.3$ 506.4$ 524.3$ 1,993.3$ 524.9$ 553.7$ 575.2$ 590.7$ 2,244.5$ 592.2$ 613.0$ 629.9$ 628.6$ 2,463.6$ 615.9$


482.5$ 502.5$ 517.5$ 534.7$ 2,037.2$ 538.5$ 567.6$ 589.6$ 604.6$ 2,300.3$ 606.1$ 628.5$ 644.3$ 641.3$ 2,520.0$ 629.1$

Oxford Segment

Assignment 123.2$ 128.7$ 128.0$ 123.2$ 503.1$ 125.4$ 130.3$ 130.4$ 129.9$ 516.0$ 129.4$ 131.4$ 130.3$ 131.6$ 522.7$ 128.1$


144.0$ 150.8$ 149.6$ 144.4$ 588.8$ 146.7$ 155.8$ 152.8$ 151.2$ 606.5$ 149.6$ 153.2$ 152.5$ 150.4$ 605.7$ 148.7$

ECS Segment -$ -$ -$ -$ -$ -$ 155.1$ 164.0$ 173.9$ 493.0$ 168.0$ 190.6$ 206.1$ 233.5$ 798.2$ 212.7$

Net Income 22.4$ 33.1$ 34.9$ 67.3$ 157.7$ 29.1$ 33.6$ 49.1$ 45.9$ 157.7$ 34.9$ 43.1$ 57.4$ 39.3$ 174.7$ 43.8$

Loss from discontinued operations, net of tax (0.0) 0.1 0.0 0.0 0.2 0.1 0.1 - 0.1 0.3 - - 0.1 - 0.1 -

Interest expense 8.5 6.1 7.1 6.0 27.6 6.6 20.5 14.6 14.3 56.0 14.5 14.0 12.7 11.7 52.9 11.4

Write-off of loan cost 18.9 18.9 -

Provision for income taxes 12.7 20.2 18.9 (12.6) 39.2 9.9 11.5 10.5 14.3 46.2 13.3 16.2 20.7 11.8 62.0 15.7

Depreciation 6.0 6.1 6.4 6.7 25.2 6.8 10.1 9.7 9.9 36.5 9.7 10.0 10.3 10.1 40.1 9.3

Amortization of intangible assets 8.5 8.3 8.2 8.4 33.4 7.6 18.5 18.6 13.8 58.5 13.8 13.1 11.9 12.3 51.1 12.1

EBITDA (non-GAAP measure) 58.1 73.8 75.5 75.9 283.3 60.1 94.3 102.5 98.3 355.2 86.2 96.4 113.1 104.1 399.8 92.3

Stock-based compensation 5.6 6.0 6.4 6.1 24.0 4.9 8.9 8.6 9.1 31.5 9.5 13.9 7.7 8.2 39.3 8.7 Write-off of intangible assets

- - - - - - - - - - - 3.3 - - 3.3 -

Acquisition, integration and strategic planning expenses 0.9 0.7 1.5 0.9 4.1 9.8 3.4 1.7 1.7 16.6 1.4 0.6 0.7 3.9 6.6 2.5

Adjusted EBITDA (non-GAAP measure) 64.6$ 80.5$ 83.4$ 82.9$ 311.4$ 74.8$ 106.6$ 112.8$ 109.1$ 403.3$ 97.1$ 114.2$ 121.5$ 116.2$ 449.0$ 103.5$

Net income 22.4$ 33.1$ 34.9$ 67.3$ 157.7$ 29.1$ 33.6$ 49.1$ 45.9$ 157.7$ 34.9$ 43.1$ 57.4$ 39.3$ 174.7$ 43.8$

Loss from discontinued operations, net of tax (0.0) 0.1 0.0 0.0 0.2 0.1 0.1 - 0.1 0.3 - - 0.1 - 0.1 -

Write-off of loan costs 18.9 18.9 -

Credit facility amendment expenses 2.0 (0.1) 0.8 - 2.7 0.3 5.9 - - 6.2 - - - - - -

Write-off of intangible assets - - - - - - - - - - - 3.3 - - 3.3 -

Acquisition, integration and strategic planning expenses 0.9 0.7 1.5 0.9 4.1 9.8 3.4 1.7 1.7 16.6 1.4 0.6 0.7 3.9 6.6 2.5

Tax effect on adjustments (1.1) (0.3) (0.9) (0.4) (2.7) (2.6) (2.5) (0.4) (0.5) (6.0) (0.4) (1.0) (0.1) (6.0) (7.5) (0.7)

Non-GAAP net income 24.2 33.6 36.3 67.9 161.9 36.7 40.5 50.4 47.2 174.8 35.9 46.0 58.1 56.1 196.1 45.6

Amortization of intangible assets 8.5 8.3 8.2 8.4 33.4 7.6 18.5 18.6 13.8 58.5 13.8 13.1 11.9 12.3 51.1 12.1

Income taxes on amortization for financial reporting purposes

not deductible for income tax purposes (0.4) (0.4) (0.4) (0.4) (1.6) (0.3) (0.2) (0.3) (0.2) (1.0) (0.3) (0.2) (0.3) (0.1) (0.9) -

Adjusted Net Income (non-GAAP measure) 32.3$ 41.5$ 44.1$ 75.9$ 193.8$ 44.0$ 58.8$ 68.7$ 60.8$ 232.3$ 49.4$ 58.9$ 69.7$ 68.3$ 246.3$ 57.7$

Cash tax savings on indefinite-lived intangible assets 6.7 6.7 6.7 6.8 26.9 4.5 6.8 6.8 6.8 25.1 7.0 7.0 7.0 7.1 28.1 7.3

Calculation of free cash flow

Cash provided by operating activities 43.8$ 39.8$ 54.6$ 58.3$ 196.4$ 54.7$ 76.7$ 92.1$ 63.9$ 287.5$ 44.0$ 96.5$ 91.3$ 81.4$ 313.2$ 64.1$

Capital expenditures (6.8) (6.4) (4.8) (6.2) (24.3) (6.2) (8.4) (7.5) (6.6) (28.7) (7.5) (8.4) (6.9) (9.9) (32.7) (15.3)

Free cash flow (non-GAAP measure) 37.0$ 33.4$ 49.8$ 52.0$ 172.2$ 48.5$ 68.4$ 84.6$ 57.3$ 258.8$ 36.5$ 88.1$ 84.4$ 71.5$ 280.5$ 48.8$

Reconciliation of Net Income to Adjusted Net Income

2017 2018

Reconciliation of Net Income to Adjusted EBITDA

2019

Selected Financial Data ($ in millions)

18


Apex Segment — 63.5% of Q1 2020 Consolidated Revenues

$629.1$606.1

Q1 2020Q1 2019

Revenues($ in millions)

+3.8%

Assignment &

Consulting97.9%

Perm Placement

2.1%

Revenue Mix

19

Recent Trends

• Industry diversification, large account portfolio and exposure to financial services provides stability

• Apex/Intersys partnership leading to joint wins; Mexico Delivery Center seeing traction with U.S.

clients

• 24.4% consulting services revenue growth Y-Y

$184.5$175.4

29.3%1128.9%11

Q1 2020Q1 2019

Gross Profit($ in millions)

+5.2%


$212.7

$168.0

Q1 2020Q1 2019


+26.6%

20

ECS Segment — 21.5% of Q1 2020 Consolidated Revenues

Cost Reimbursable

39.2%

Firm-Fixed-Price

26.8%

Time & Materials

34.0%

Contract Type

Commercial & Other

6.2%

Federal Civilian39.8%

Defense & Intel

54.0%

Customer

• Continued industry-leading revenue growth

• No slowdown in March despite pandemic

• High demand for machine learning, artificial intelligence services and cloud solutions

$37.1

$29.6

17.6%11 17.4%11

Q1 2020Q1 2019


+25.3%

Recent Trends


21

ECS Contract Backlog & Book-to-Bill Ratio

$458.6 $356.6 $494.3 $488.4 $490.6

$1,317.9 $1,589.4

$2,200.0 $2,082.7 $2,186.7

$1,776.5$1,946.0

$2,694.3$2,571.1 $2,677.3

Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20

Funded Backlog Unfunded Backlog

1.5 1.9

4.6

0.51.41.3 1.5

2.4 2.1 2.0

Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20

Book-to-Bill Trailing Twelve Months Book-to-Bill

Co

ntr

ac

tB

ac

klo

g (

$M

)12

Bo

ok-t

o-B

ill R

ati

o4

13 14


Oxford Segment — 15.0% of Q1 2020 Consolidated Revenues

$148.7$149.6

Q1 2020Q1 2019


Assignment &

Consulting86.1%

Perm Placement

13.9%

Revenue Mix

22

• Consistent performance vs. prior year despite pandemic

• Permanent placement revenues up Y-Y in Q1

• 9% consulting services revenue growth Y-Y

$59.3$58.9

39.9%1139.4%11

Q1 2020Q1 2019


+0.7%

Recent Trends


Footnotes

23

1 Last twelve months as of 3/31/20. Free cash flow is defined as net cash provided by (used in) operating activities, less capital expenditures.

2 Adjusted EBITDA, a non-GAAP financial measure, is defined as EBITDA (earnings before interest, income taxes, depreciation and amortization) plus stock-based

compensation expense and, as applicable, acquisition, integration and strategic planning expenses, write-off of loan costs, write-off of intangible assets and

impairment charges. Excluding the cash portion effect of the CEO transition in Q2 2019, LTM Adjusted EBITDA would have been $1.8M higher and totaled $457.2M.

3 U.S. Staffing market size from Staffing Industry Analysts’ “US Staffing Industry Forecast, April 7, 2020” and independent 3rd party (Parthenon) analysis of freelance

market. Commercial IT Services from Gartner; Technavio; Comptia; SIA Parthenon-EY CIO Survey (Light Deliverable Services). Government IT Solutions from Wolf

Den Associates LLC and ASGN internal estimates.

4 The ratio of the aggregated principal amount of consolidated indebtedness secured by a Lien on asset of ASGN or any of its subsidiaries to Lender defined trailing

12-months of EBITDA (Maximum leverage allowable is 4.25 to 1.0 of borrowings outstanding under revolver).

5 Book-to-bill ratio is calculated as the sum of the change in total contract backlog during the period plus revenues for the period, divided by revenues for the period.

6 Excludes permanent placement revenues and related gross profit.

7 Adjusted SG&A Expense Margin (a non-GAAP measure) excludes non-cash expenses – depreciation & stock-based compensation – & acquisition and integration

expenses.

8 The revolving credit facility available balance is $246.1 million after adjusting for outstanding letters of credit.

9 Effective tax rate estimate does not include excess tax benefits related to stock-based compensation.

10 Billable days are defined as business days (weekdays) less observable holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day,

Thanksgiving Day, Day after Thanksgiving and Christmas), and considers other factors such as the day of the week a holiday occurs and additional time taken off

around holidays.

11 Gross margin.

12 Contract backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed. Contract

backlog excludes awards which have been protested by competitors until the protest is resolved in our favor. Contract backlog is segregated into two categories,

funded contract backlog and negotiated unfunded contract backlog.

13 Funded contract backlog for contracts with U.S. government agencies primarily represents contracts for which funding has been formally awarded less revenues

previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally awarded or authorized by the U.S.

government even though the contract may call for performance over a number of years. Funded contract backlog for contracts with non-government agencies

represents the estimated value of contracts, which may cover multiple future years, less revenues previously recognized on these contracts.

14 Negotiated unfunded contract backlog represents the estimated future revenues to be earned from negotiated contract awards for which funding has not been

awarded or authorized, and unexercised priced contract options. Negotiated unfunded contract backlog does not include any estimate of future potential task orders

expected to be awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement

contract vehicles.

ASGN Incorporated 26745 Malibu Hills Road

Calabasas, CA 91301

818.878.7900

asgn.com

baird 2020 global consumer, technology & services ...€¦ · 03/06/2020 · focus on...

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