ASGN - Earnings call transcript Q4 2021

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Operator

Greetings. Welcome to the ASGN Incorporated Fourth Quarter and Full Year 2021 Earnings Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Kimberly Esterkin, Investor Relations. you. Thank

begin. may You

Kimberly Esterkin

Officer; Good ASGN's thank Year Fourth me Chief Call. operator. Pierce, and us Financial Chief XXXX for today With Officer. Executive Hanson, Ted for Quarter are Blazer, afternoon, you, President; you Ed and joining Conference Rand Thank and Full

that get started, everyone like forward-looking contains to would we commentary statements. Before remind I our

of actual our Although update call. these this release those uncertainties, and and subject to we risks from are uncertainties believe these and We obligation on and materially such, risks statements not results our described are statements. press to differ reasonable, any made assume Certain SEC they are today's do could as statements in filings. in

Investor supplement and Relations the free of at our Officer. GAAP note release. to on EBITDA, flow. measures Please between These measures, website will measures. today's non-GAAP income convenience, that section also Hanson, Chief intended remarks Ted investors.asgn.com. adjusted cash as over your and non-GAAP call, adjusted turn measures now in are the referencing materials certain I Reconciliations prepared net be press the we included can such will comparable call GAAP non-GAAP this Executive supplemental our For in and to are be found

Theodore Hanson

dedication my for and our want I your express XXXX. gratitude all clients with you, Thank year and off for QX to ASGN well our Kimberly, momentum this company teammates to very for of XXXX to The Fourth us extremely building Quarter exceptional an Earnings positioning performance ASGN and year. my at joining Call. and productive ASGN's thank you for capped fourth throughout quarter

across range. XX% with revenues billion, leader. is the million, along end our led totaled a are company, guidance segment of guidance. end productivity improvement Adjusted efforts consulting with why the of up the ahead fourth by quarter. EBITDA totaled business, our quarter, Your and top $XXX.X our Beginning and the high also the the progress of of in XX% surpassing the higher of $X.X market reason year-over-year year-over-year an Outperformance Commercial ASGN drove

an segment gross experienced shortly. Government margins. that resulting Federal in Our EBITDA business improving More and impressive on mix,

strength success of X of respectively. year Our EBITDA billion increases in and prior with year-over-year, resulted quarters, revenues the quarter final of full the $XXX.X record of XXXX, XX% of combined XX.X% in $X the adjusted and million,

segment or XX% Free $X.X of revenues Commercial Our billion for Government Federal accounted totaled operations flow XX% revenues. million continuing total or accounted billion while for XXXX. XXXX from in segment consolidated annual $XXX.X of for our $X.X cash

past that balanced in to Over our maintained we to very our making the year, a and support strategic growth, investing organic and strategy acquisitions providing returns growth approach capital shareholders. long-term flexible our allocation,

million X-year of of Directors December $XX During common XXXX, repurchase million went year. of our $XXX on we stock, plan the in repurchase by of under approved which the million new $XXX.X spent our Board last

on acquisitions witnessing of will invested we Pierce the buyback believe which momentarily. we our on I While shortly. Ultimately, to momentum of in discuss update provide will M&A to continue year, we highest remains this leverage return and program use our best capital, will an share and QX, throughout our are recent guidance, Ed our our and acceleration growth XXXX quarter date first QX revenue that

remains all Our an trajectory. our indications business that upward on

experiencing not in continue pandemic. recent from our of employees the all to remotely, the any note impacts nearly surge of work While we are

business In and and of solutions, other also remains and the of our is but IT trends. fleeting cash expansion. just remains include which growth high. volume productivity has leading our in Keep and that Our whims of flow technology very predictable not trends. revenue not margin our ASGN market, words, above continued at services predictable steady very a as These mind trends provider work

have to job across that trends detail business with success on continued innings by ahead work provides said, companies. beginning services markets are growth technology that their in type end for to pathway Fortune performance fourth our and serve. and more us with largest turn and of them. With digitization Our segment, trajectories the early let's and transformational we of our the in enterprise for solutions strong clients. large are Commercial, our which a is quarter, long segment XXXX These demand of implement This

all Our Commercial segment driven fantastic service areas. a in quarter by had fourth strength

commercial of and continued up in For for year-over-year revenue strong to Commercial segment of services. CyberCoders second reflected revenues. the Circles very $XXX.X creative this double-digit the time quarterly and XX.X% segment surpassed Creative their XXXX, XXXX quarter placement XX.X% marketing Growth From report and permanent growth generated in the million, up Systems were consulting, sequentially growth retail, and an and fourth organically. and double-digit all achieving and vertical on the airfreight Apex continued in X with verticals for industry utilities, the accounts. industry quarter growth growth strength sectors experienced growth up year-over-year both digits airlines perspective, accounts due double during across commercial high with energy, every year-over-year all basis. Apex commercial Systems System's to industrial particularly a Apex

Telecommunications TMT digits was vertical Our up or year-over-year. double and Technology

up defense roughly Within digits business down over ERP growth, XXXX. accounts continued Financial services double-digit growth largest driven the QX rates accounts agile, top management and Apex QX. versus for digital last Permanent growth margins target retail and Services Systems we X high by XXXX. QX verticals placements growth placement margin for all positive accounts. variable our CyberCoders accounts the for the accounts year while XX.X%, marketing vertical, commercial basis Gross growth account demand branch of as digits and up industry opportunities well. as the Commercial and at XXX high-margin with up aerospace, wealth portfolio. expectations. X% top gross and growth management, government growth quarter, permanent offset for up saw while by with perspective double-digit were insurance, the Higher industry productivity technology Services new well an achieved telecommunications Creative businesses. applications our our perform to in workforce QX payer From led double-digit due derived high margin fintech XXXX. exceeded revenue Healthcare to single and our and and accounts. across was with provider also was in creative our EBITDA compared compensation and Revenues were accounts our was Government in to from accounts. across to double Business headcount significant across including Circle posted the due in work QX account cloud by project Systems expectations continued points were digital, incentive segment was consulting, higher higher of top and support at their Apex flat all outperformance from to quarter investments across and

of We XXXX, also million increase to a $XXX.X significant totaled up in expand year-over-year continue XX.X% commercial consulting Commercial consulting our QX organically. revenues and during revenues the XX.X% quarter.

past to accounts, consulting projected clients. grow revenues $XXX.X million value close positively with first pipeline recall and commercial you reach source of our quarter. continues driven totaled revenues primarily consulting As at in for opportunities in trending future in consulting may the existing remain we I'm $XXX conference XXXX. pleased is by revenues our September, commercial consulting provide rates the Investor strong million. an ASGN's our at our offerings Growth and was Day high year, we report double-digit Analyst to to this and to important of

move growth, ERP capabilities With we opportunity the healthcare business strengths unit gave To and this to and in solutions. out capabilities prestigious identify a us illustrate ERP build manufacturing opportunities of solution Infor consulting cloud. we solution hospital's capability added clients. won support acquisition So expand process strength, our added continue our and and acquisition Avaap in to a QX our to to and our that service major recent

our the us how solution solutions was account account for is bringing are the to this our and we of a Systems, one clients. to ERP that market. gave by to of Apex acquiring the example long-standing taking this expand strength opportunity While building and This solution added a great existing relationship new strength

Revenues period segment, provides Department to Defense, totaled Federal $XXX.X mission-critical turn to let's agencies. million segment solutions Government the the Government agencies intelligence the consistent civilian tough for a on revenue for discontinuation low-margin a a our result of contract, Now of acquisitions. prior and fourth year other IndraSoft and which very ERPi was the Federal comparison. of offset with from generated Flat year-over-year a the quarter, revenue by

at X.Xx the to AI-related and on solutions analytical engineering, experience the tool activities. engineering trailing of in basis a the for of during Air activities some revenue premier plus-ups for for to Government quarter, The expertise included the contract and the mobile totaled DoD to and this up fielding to XX-month for focuses basis. mobile mix quarter a won year-over-year. office. Air follow-on Importantly, Research mission an application X.X strong business licenses, Agency's advisory classified fourth the Ed? Contract to ratio enforcement system that, contracts that work, labeling XX.X% XXX backlog Force; million segment Also even support difficult management turn of in a for and Pierce, Force new Combatant points fourth impressive end and important Government kits $XXX.X Defense during of AI-related were improved to pipeline billion the and provide Technology results of a customer. guidance. a development, Advanced a quarter, was quarter, segment's technical modernization X a we third the device award an A examples XX-month on over QX, Ed book-to-bill contract healthy CFO, remained our new award our EBITDA to margin mission; business business AI and awarded the that provide With $X sustainment development and quarter year-over-year. our basis the application X in provide discuss XXX coverage contract improving with to also Command the resulted XXXX to for the Tactical quarter for In adjusted call law the Federal of second comparison, Gross we points in of revenues. and contracts an the margin with and up first services now Projects training saw an Federal that including a will to financial award and awarded mission-critical segment's software I

Edward Pierce

Thanks, everyone. Ted. afternoon, Good

As Government exceeded Commercial growth our the EBITDA our contribution our business financial from Ted Federal XXXX segment, margins adjusted for reflected expansion performance performance our fourth and and gross full of solid This segments. the quarter the guidance and performance both mentioned in estimates. in segment, earlier, of double-digit year acquisitions

had at XXXX. high-margin year-over-year a of made XXXX. spending year-over-year. higher and a exceeded expenses QX XXXX including year-over-year to rates EBITDA quarter, higher high staffing of from QX after segment revenue and This our Revenues segment had up quarter QX operating of and in the year-over-year level acquisitions expansion million, federal in expansion grew were IT the down $XXX.X billion, year-over-year. million, above Commercial segment mix. and were EBITDA for for and as Adjusted revenues was And Revenues points high which up For renewed reimbursable to made commercial margin revenue $X were comp segments borrowings contracts points of and from a cost $X.X $XXX.X consistency were Gross incentive certain project from surges margin lower the XX.X% services. growth up XX.X%, expansion the included in federal quarter, $XXX.X was were which million EBITDA was revenues. improvement from margin cash in of and credit adjusted basis Gross estimates. the divisions up growth higher digital revenues points Gross business high-margin one, -- basis earlier from revolving that acquired that consulting of resulted of included that our million our marketing adjusted and businesses expense the and with result Commercial XXX on web in on the related XX% services, year slightly revenue certain XXXX was basis was in XX.X% year-over-year compensation streams, from by million creative profit, of changes guidance up million, cash our Income a from high-margin double-digit from revenues after from The level XXX reimbursable driven project XXXX. prior up was all QX and $XX fourth government XXXX; XXX was in of $XXX of and than in XX This year-over-year, up cost million, support and operations estimates levels. and price the all that achieved headcount over points web from improvements growth of gross income of government segment XXXX; investments Revenues profitability revenue higher and was margin up $XXX.X the carry million, straight was ended on for initial equivalents contribution Gross year XX.X% two, of expenses our not program from renewed acquisitions contracts increase million. our certain contracts QX higher despite in Both guidance to there under up a year-end, year-over-year. acquired commercial The outstanding Federal mix. contributions commercial year-over-year. from $XX.X not end was firm-fixed historical growth in business, reported business reflecting both $XX.X result services XXXX whose higher At were XX.X%, XX% were last for XX.X%. year. no line three, during from the up low-margin the double-digit a The services contribution continuing Government difficult facility. in benefited SG&A of were last margin XX.X% business businesses basis XXXX year. in from our term quarter approximately healthcare and were year-over-year. for

was senior X. Our ratio to debt leverage secured X.XX

set These first of contribution are and earnings more assume quarter, and Our after include million day based the financial XX acquisitions billable current quarter estimates estimates XXXX. our QX release on materials. are revenue of in which $XX.X earnings trends, the supplemental in days QX from of production is XXXX for made X forth an XXXX estimated than

lower the year, at reset, and margins also every adjusted which which gross beginning or first of also consider in occurs estimates payroll include Our in tax the EBITDA quarter. the results

the XXXX, $XXX.X million million million, $XX.X $XXX.X quarter of to of of and For and estimate above continuing we income With $X,XXX revenues of a primarily margin expand million of the consulting respect of year grow will market high-margin and services. $XX.X growth operations we XXXX, expect to first from digital EBITDA as to creative gross double-digit $X,XXX million will full result to rates our adjusted revenues million. marketing commercial

to Ted for I'll margin as high year expect it line support will operating over growth our the We invest platform year some your last our you closing in be business. EBITDA of turn sustainable to in adjusted the remarks. to with for we Ted? for continue Thank and time, back

Theodore Hanson

Ed. Thanks,

growth to Blazer our expansion leading of our company's in Consulting As his and are succession XX to like has with our of Rand Rand to Rand update ASGN. a we've with has many approaching part years changes, the past of Commercial been leadership of President and on ASGN the changes, of these business. months, of is Apex of you number Since aware, which tenth a announced ASGN, the joining several long-term I'd provide Systems. been integral each beginning brief planning. anniversary particular, over promotion

to of President will drive growth As across strategies. Rand our to leadership be positioned units our ASGN, continue well provide and

President are of leaders Sean with at helm former Apex the in assumed within than Rand's We each business operating role ready-made also of of roles installing XX successive the as more has units. years our Systems. Casey

has revenue President professionals joining John growth continue their Heneghan in spoke we and margin drive succeed whom John and make to become announced last executive team positions. previously will worked we hand these in Both in team help to ASGN about our our with Sean management Along equipped with detail our in quarter, ECS. have who expansion. adding new and hand are While of to well investments promotions, since

advantage. our been - acquisitions. Some multiyear where of us December sustainable early note a these integrate some only trends. to I'm XX, of and previously firms of aligned competitive ASGN ultimately acquisitions have as through to of ASGN's organically, growth identify professionals and today peer you not its fully fund Each all efficiently and ability present have quickly pleased them transformation from business joined well strategic our and others that to acquisitions strong arrived has evolved of as announced but then going to these trends are IT business with forward. brings began our integrated. we their innings be in to discussion back This and model. digital tailwinds also

well already As and performance, an continue benefited trends, secular evident from on we our our to in upward business are has trajectory. financial positioned these

is targets It tailwinds provide pipeline In grow going which us free ahead of higher-margin and industry consulting generation consistent in that capabilities. favorable work strong this set. forward historically the fact, of were introduced we flow cash model with X-year our to these are September past our will tracking help

continued strong into this in capital the remarks. our further services the markets unique With continue deployment I'm said, is long maintain this flow government success expanding and our in to and deploy the place behalf and the our for support model, concludes company. that has to that ultimately you consulting cash On boost confident will our right team, Directors end the our entire of We higher-margin we to generation for in and commercial capabilities strategic leadership position going of our business thank growth and team Board spaces. with right of right term. ASGN the ASGN the capital us prepared profitability will our for forward. your

your open will questions. the to up now call We Operator?

Operator

[Operator Instructions].

Our Tim Blair. line with first question Mulrooney William the from of comes

Timothy Mulrooney

the on on else, Rand promotion. the Rand, congrats Yes. quarter, and Congrats nice everyone and

margins. couple a on Just for me

for that. fourth in at quarter, you the the I came and ahead close EBITDA So of I mean, was for mean looking XX.X% midpoint, well your to guide something margin it

expansion. for some you primary of to talk can reasons internal listed margin But expectations? why factors the drove saw Now outperformance relative you about that the the your you

Theodore Hanson

right? definitely the It's stronger much performance mix Commercial in Tim. sure, business segment got Well, if you will, a we thought. driven, We than

the the from driver turn, then believe right the Creative so -- largest bid from was continued margin. which margin. really contribution contracts. what that Segment, had overperformance then certainly amount a business our the CyberCoders, Ed X of which consulting And And things out the difference, Circle, laid EBITDA And in some primarily, low-margin from made we decision to of was gross in is think I Federal biggest

And so and contributed X performance in that the second IndraSoft, certainly year, margin well. better-than-expected we contributor. of acquisitions, and had of And they ERPi that the as from then new our was a half to the overperformance some

So faster of growth flavor little that underneath were saw a business gave in Commercial that, about we you our kind by but original where then it expectations. business things beyond

Timothy Mulrooney

And really That's if for then be John helpful. on he's call. might question, Yes. this my the second

XXXX. government know This of the the a continued delayed then were the release On would something the how talked And more business, several quarters. last more that pipeline year is side RFPs see releases delays? versus you ago? about those in on you you Have there have to characterize that now I you've seen

John Heneghan

Yes.

it you better as say functioning Tim. still if know So perfectly it's you not than will. I is know that was, pre-COVID, it's still it mean -- market -- I would that you

those. the opportunities the right make responding of of having more kind bit seeing the So of released. decisions held a right little to people on back chairs to in few the We're We're slowness by still we're government. a definitely being behalf

than contracts, little have better. to we're year, rebidding extending total I on we large multiyear they're to a things think chance going bit they're more this are and awards, begin the that instances, And those month think gets every bid awards. quarter in But every to larger. So

that watch to here develop have marketplace. federal we'll so in that And

Operator

Securities. the line Tobey of next Truist with from comes Our Sommer question

Tobey Sommer

legacy name hospital of like you I a was dig add from you customer when you sort example them, of Apex mix? its you expect to that to course, wondering consulting form I form to much the don't just customer that had, looks or what if revenue frame in like how garner would sort things into that that, versus could of traditional

Theodore Hanson

Rand? that take Rand I'll Sure. let one.

Randolph Blazer

opportunity, Tobey. Yes. Well, consulting these think the I double -- opportunities the

had we to account level. this a with staffing but of business it steady So is taking amount another this

So it's account. critically pretty meaty of important -- a that and is to it's this piece work,

that So it's case, imagine in Did a this doubling. you certainly answer more can question? that probably your than

Tobey Sommer

does. of on know special customer average customer how to from It the and with opportunity in average this that -- of consulting. an an does. the terms And one It Is amplification a in of benchmark portfolio, in respect don't opportunity? the is sort fair basis size of terms the I or

Randolph Blazer

case, I staffing what it's what which exactly -- let we important think even is work the okay? this all, the of can maybe requirements vision, is me the Tobey, them, in every the vision. I to first wouldn't we say, do there, opportunity being and This able more that driven in case. for revenue fulfill to value-added expect then doubling. stream, add And this is

I the it's work in and Over our even I of consulting now but year we've work. that that past, engagements a with reported more base time, portion think multiyear. than sometimes a Tobey, account nibbles, started go think, X-figure we penetrated only as,

think Does I to work going see to the grow number we sense? in accounts increase consulting have give the account we that some go, of that an we you plus for. do work So you're as

Tobey Sommer

does. It

Randolph Blazer

Okay.

Tobey Sommer

you business, in and could bones of little speak -- the granularity about revenues how more the bit a the to to advantage the CyberCoders take On flesh maybe hiring the you're handling this talk on growth market? and of

Theodore Hanson

as not profile as margin here, line, on But know, margin it's the individual we're units. certainly, certainly but it's placement well CyberCoders But release of don't levels. not up. offering. to the at labor the permit is growing we large factor a And doing top what rates gross market, XXXX just the of much of a consistently the the that's but part contributing contribution They're the you Tobey, They're growth sequentially. level. So over

market focused service. opportunity other organically on the it where parts the other we investing for larger in have ask very end of certainly the that So that market space we're we are business advantage investing as places. they services our also, a the us so of opportunity, federal in and But can consulting in take clients

Randolph Blazer

it is CyberCoders is Ted, too, mentioning the approach. electronic an worth of it -- to is market the approach worth more Tobey,

they're then to and So where see to fill jumping scouring fields are the them. digital in opportunities

rest us, our that are electronic an give important you they to day And opportunities an the in So to if electronic critically business to they component of the age, adjunct because this will, -- people. or to and our right clients digital means and in they're means responding identifying them. now, they're looking for

Tobey Sommer

a Makes opportunities last than perfect you larger my to of authorized, was wanted front you. a opportunity as set because tuck-ins sense. were that wondering seeing deployment whether one. indicative I smaller ask about are been some in has capital Ted, you've which share broad that acquisitions of recently, repurchase you that clients for primarily question small done

Theodore Hanson

there. No, our don't think out when bigger ago authorization is put company so, Look, because authorization I Tobey. last the bigger X we're years we a than

we a I the think what it's M&A. on So reflection opportunity don't believe in is

acquisition all that, tuck-in at things at seeing they call would flavors seeing are things million are active million. category $XXX sub-$XXX strategic tuck-ins, than and larger looking above. opportunities. but lead more We would also to We're definitely that are We're that be scale, strategic be of that it the in

and as what were in rushed seeing XX/XX businesses here opportunities. just flow coming to that, get definitely we're that to first coming the time a M&A a February January, of into the and deals And But pipeline. moment from so a pretty been small good done January -- the I in year in later an into because a we in in now building market a feel and the was of about new think little standpoint. quarter of is lull end There's good at bit

So it, of one we're part we and one. that to keep pleased working with by just on have

Tobey Sommer

Great.

it kind appreciate like of that's I the phenomenon. seasonal sounds a So color.

Operator

comes Markets. question Jeff next of line BMO Silber from Our Capital the with

Jeffrey Silber

wanted government just back to go had a X-part to the I I Actually question. segment. federal

the comps -- extraordinarily going margins basis then excluding not decision a the I that? one growth because forward tough using for the were discontinue that because of also segment? contracts reasons. the also, come? to Are of contract. mentioned like And to Is gross this You some more know just of seasonality there should lower new only that's any high. low-margin this there's I be know but the rate, we

Theodore Hanson

So that answer I'll Ed let the and part of take the first second.

question. don't mean, We very see focused -- for of thanks down EBITDA Jeff, of This revenues anything was you on else. revenues and obviously, to -- I can the the conversion So we're quality those the line.

to higher value, in not this opportunity didn't case this difficult an make. take to additional future. get So was Every you and now happen. then, the on to work a In decision particular that

going And the its right the here And see decision that. made margins to we not team so I bid think can go reflection gross bottom forward? as ECS you of down the line. on Ed,

Edward Pierce

Jeff. watermark, I mean, look, think QX a was Yes. high I

As our in contracts adjustments related release, firm price earnings also fixed read ran that year. their to benefited from the terms they you in probably some initial

QX. that And gross related profit in so a there was to in pickup

probably And if X about full is it's it So perform, okay? X year. to you over of on an the to going I probably what higher points this ongoing higher at basis, they're course anyway, look the think again, than

Jeffrey Silber

comment space, Yes. I wondering environment. can we've follow-up that's just My private know appreciate both what I turnover recruiting the you the higher-than-normal is to the internal held that. I seeing. publicly in if companies you're lot I'm everything your and in given question on. talked recruiters. positions, about going a about on But of focus those want on

Theodore Hanson

Rand, one? do you that take to want

Randolph Blazer

damn because Well, question Jeff, a they're our good so and it's pluck good. comment. trying Those are to recruiters firms

or with incentive the build so compensation got having year if to in but some our are a we over some book you turnover We're first of money, XX business, a us particularly system. great So make our business, months. comp will, them because you've and of in XX though, of you recruiters, can being of that high to period

astronomical right? flow, do of it it where profitable whole recruiters things by can for going them, a because of there's hit turnover. the in a are quality our want year also out It us, where things been automation, something we're to and senior So making going it's just But I across of for said has going the the automation workload, more the junior, instead we the range, a between recruiters with more us easier we mean in made to adjustments of little of handoff all our compensation force improve to see probably requisition on recruiters this combination has the all can hurt the the make more first not Having requirements this us the XX% of to host now and turnover it's process, overall okay, leveraging you we of on industry. past recruiting than that. those We've turnover we for the in they're experiencing that, productivity performance handle of do, including couple year some So account higher requisition, hasn't the help more some are for bit. facing been virtue to like with managers. but easier of to the forever. our recruiters it terms make them years

to I'm wish going I others our team, So We're not much the watching. that's happen. we're would but very mindful. into tapping very sure

Operator

Our next with the line Thind of from Jefferies. Surinder comes question

Surinder Thind

that taking the we this Obviously, example, Like question share into in the And did at a service case existing consulting bit of consulting a Or you I'd success about the about are Can healthcare think with example more start like how consulting business. guys picture of you Consulting point? that little IT overall from provided. you should fits of talk about firm? the how healthcare to the the an market Commercial the dynamic? displace you in services general? who

Theodore Hanson

Surinder, But Surinder, in to while go I'll Rand this, to market table. in -- add this have resources in the a high of the at so share talked terms place be if way a going get let here. think obviously, start the about and firms So looks biggest level bring will, order change capability, what able on about comment done, we're moving positioned the there's be directing where feel there's I'll getting like and to right client in both how unique right? secular and so winner the to we we done, around, is you X consulting things they to at and is a CIO there, right? the And in to -- to this we've And

So with this how is activity, And some up us the you client-directed they there. pulling doesn't there's we're Rand. doesn't if do, we're But big if still the it of of positioned, work you work into client mean that will winning client way And firms because will. is -- the consulting right, there. by a the

Surinder Thind

Got it. Yes.

if was I -- to ahead. interpret go So

Sorry.

Randolph Blazer

no. No,

ahead. Go go ahead. You

Surinder Thind

guys' your uses this So going understand a the I is to was chopping goes temporary So professionals. big firm to consulting previously that project picture client effectively that is of tackle portion the related you trying also that X. part guess, Is fully large would and can, trying to with I been have address. that, to -- or ask, -- Consulting up get what I'm I'm IT because a so Commercial just the happening? the what's effectively staffing business what to there's

firm potentially, bring different Because the would call they maybe a level you consulting be teams. IP dynamic. guys what hire of of putting firm table potentially to But right? the so not if trying of bring to seem right? And with I'm together you they set. a skill IP a kind That's to them, that different just I X, culture part the and understand whereas

Randolph Blazer

Ted. me go, Well, let

provide say would unit I our engagements. and these IP, consulting leadership does on methodology, all, of First experience

a point to the than the to relevant and build that generally technology team at and So a happy and experience with using the oftentimes the better we're bringing bodies. who business with more body, people also their experience We're consultants than just just consulting on bench. price relevant somebody like are the

of comfortable And we're CIO, this as would feel of we're that on a and doing the combination as good there's in could can like they and consulting stride. any work that well it with hitting of So the most clients work get do. a getting with communicating our in Okay? Ted said, follow-on are with And that a expect, quality -- they point you work, accomplished. a obviously profile price that that business consulting, give risk at the work factors work,

just as of think the us Okay? So providing don't team.

the team, expertise and been this for right teams certainly different lot management right. made in those productivity assembling where are results. did them apply call that kinds know-how, We evolution technologies, we you beginning, All help for we've the make a and that comment XX years. technology end of a we build those accountability cases artifacts, the teams includes At but there. in of workforce the consulting, can used of us. there's on the a X mean on -- consulting specific many IP, for what methodologies, if of we've manage to me we a take at in I team let engagements And too comment by

of ERP existing set and new a it security, healthcare ERP, months. time. done gotten we're implements time to that a ERP Okay? are a for do some not And lot CIOs And these on to things this new I And in enterprise, knowledge the other you've help of augmented. in That linkages to how in with was with case, methodologies and with your technology modern pieces. then together recognized over into fine. a their When this period the cloud business, of now of in application with But and credentials we insight that somebody because a are your right has you're put be transformation will providing experiences their -- cases, go we've long our while environment and case, software, where actually maintain digital certainly the quite new to new translating teams like new to some think team. all technology, our got take environment, a workload. in the They done could new

expertise to be knowledge that happen and equipped existing all the community around the technology. use new of required the in the cloud, how we and environment, user around around the So environment new cybersecurity both the systems other were to linkages the to to have and the they have

was and that show hard it was maybe demonstrate been we some the -- that that for that's fill this gaps. in past, and in So we the there, these to software in there bring all in to suite, them. Infor case, but Infor We cases in to it give else Does you somebody -- could and were were able a sense?

Surinder Thind

Yes.

helpful. subsegments in it's levels. think in pre-pandemic this we obviously double-digit It talked guys prepared in else comments, cycle? growth, terms point? are at placement pre-pandemic different of actually of circle, everything then creative those about are that's I levels quite terms a of both Are significantly permanent like And performance. you question just strong the is where above slightly revenues above in that where we Or -- seems really very

Theodore Hanson

I Yeah. X now levels, above quarters -- there I XXXX X running suppose now Surinder. think

Operator

Andre question next the Our comes from with Baird. Childress line of

Andre Childress

Childress, for Andre Marcon. is on This Mark

could So inflation. Apex about my did just staffing a it's your how of that impact you in tight margins, basis, revenue do markets side is clients? first your as pass think on prevalent and you things? question on go-forward stayed trend everywhere. the see that wage remains as go-forward and prevalent wage And particularly is your inflation to to along Obviously, if How QX? How ability that

Theodore Hanson

Yes.

in pass But to our IT I demand bill wage always history, through -- and it's anywhere. skilled with Yes, not So that Andre, we've don't but and highly been it able to IT expect over seen we've balance customers. people. we've inflation going into today, just there. yes, is our supply manage been of rates this

volume been work. that. if growth, our always to kind some of relates at little look dealing bit more with with and we've to then in amount inflation a be it acute of now. right So our of happens turn, clients just dealing It as you But it's more

a in rate. increase little And bit with of bill so

in expect last going to clients some our that important bill strategies their we'll execute I part the the and most the be so that And your technology organizations. question, any forward still with include are going things of because And discussion. on we're rate we have increases the in and this, them helping a digital able see to the work that deal other of

able that's to to get talent the if very Rand, been an to done them. you'd this make the open way. why we've so don't else anything along And I add to dialogue have is And and that. know have important this to work

Randolph Blazer

think I that's great. No,

Andre Childress

And Commercial fantastic Consulting. obviously, by another performance

clients noted also now clients cross-selling? you're clients. coming that that that clients. how sure business You now staffing I most clients from consulting -- consulting staffing are or existing is the just existing of existing And clients was want many that new make to also existing

Randolph Blazer

Ted, take can this? I

Theodore Hanson

Rand....

Randolph Blazer

a solutions with from client. clients. a if don't client. are our if care to Yes, them. it's growth it's And a an existing I we're And existing A of our solutions, into both to or were our clients want any I new to multidimensional And And in And penetrating through yes, new that after see is existing we new we a staffing both client can existing staffing can lot a okay? we And entree, be clients. if it's So bring as work we're terms is to well And value consulting happy them obviously, base base, here consulting, as staffing expansion our of to value of I don't coming doing clients' make care always consulting, it's or point. an client. do staffing of. new be the client entree that. ones consulting clients. the may clients. client oftentimes, where not provide or staffing

Operator

Ladies to for to question-and-answer of now closing and I the remarks. have reached the Officer, call Chief gentlemen, we over session. turn Hanson, Ted end will the Executive

Theodore Hanson

the hope in for the with We to staying healthy everyone April you quarter. first again is at well. speaking forward close you call. of and look today's Be thank Well, to listening

Operator

may lines and at conference, day. this today's have a you concludes wonderful participation, This time. for Thank your and disconnect you your

ASGN (ASGN) 10 Feb 222021 Q4 Earnings call transcript