ASGN - Earnings call transcript Q1 2022

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Operator

00:06 Greetings. Welcome to the ASGN Incorporated First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. turn over now Kimberly your will Esterkin. I the to conference host, XX:XX

may You begin.

Kimberly Esterkin

operator. statements. and Officer. to conference our Good joining you, Ed would Executive Thank XX:XX afternoon, like President; Blazer, we for are Hanson, contains and first commentary get Officer; me I Rand us Chief thank that ASGN's quarter Before With remind XXXX Financial everyone call. Pierce, Ted forward-looking Chief XX:XX today for you started,

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

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

Theodore Hanson

of earnings growth. the accounted quarter quarter billion, range. XXXX. our the across quarter Thank of I $X.X revenues, you momentum for XX:XX XX:XX first business fourth with into the first in joining very surpassing Our quarter XXXX experienced for the up of XX.X% segment's segment continued of driving totaled guidance units year-over-year the all call. thank pleased consolidated you, strength XX.X% Kimberly Commercial report we and am Revenues ASGN's end the high XXXX to first that for and

Adjusted quarter. model these XX:XX billion of growth which future billion clear is our services in from with out work, million, and will and XX.X% the be quarterly that but and Investor three-year not laid revenues model business revenues the IT provide our delivery This difficult XX.X% Government despite segment-level continue solutions that our With line performed Day to achieving from & resources, such providing detail year-over-year a markets. commercial It provides XXXX, September. consistent $X in ASGN’s come by and end revenues and unique aforementioned EBITDA quarter, the to improved Our year-over-year and the closer the this was $XXX.X in of expectations targets significantly for will segment comparison. Analyst existing to a with for remaining our also the for accounted critical the of winner that XX:XX of total ahead only brings consultative also the trend company teams. solutions we at we of $X.X Federal continues performance to quarterly our supports to fit results business. IT past record organic of government results, first us goal strong the ASGN's up shortly, conference custom I

division, segment's Apex staffing solid quarter, Systems, had in of this for our strong team not services. in for segment last company positioned XX:XX technology growth only reported enabled but you Our entire to the for exceptional have our also gaps very revenues past needs. million, to our of ASGN IT future company for are over Together, with thank while XX.X% QX tomorrow’s of targets, to records. a revenues other accounted both quarter preparing increase the IT We of talent, reach to $XXX.X quarter. double-digit like internal largest an commercial the new and any XX.X% for better consulting solve year. I'd workforce your than surpass efforts financial digital

accounts was contributed our businesses. XX:XX growth basis of digital compared basis marketing, margin in creative led with creative defense business five margin, Growth and industrials, perspective, accounts our driven by a quarter. while, commercial Telecommunications accounts consumer Creative XX:XX for our verticals TMT year, all target, we verticals and last achieved business while quarter. for XX:XX placements accounts, our the corresponding across across mid-single Growth payer industry in services accounts, segment across reflected along the points and also Technology, solid industry expectations, gross in strong Finally, posted our industry retail in permanent largest XXX strong placement the rates XXXX. of and was accounts. our permanent accounts was vertical from management versus and Circle in to the adjusted in Growth From saw government also digital were QX growth double-digit in double-digit achieved Apex have high unit's energy, We for wealth services to both commercial industrial marketing accounts. growth growth uptick margin growth This permanent of Technology up and digits our quarter. of branch five top particularly Media, sectors performance a quarter. consulting, EBITDA enabling commercial margin for Financial strength across top and exceeded the and their XXXX. insurance, all unit XXX of our QX points discretionary segment increase positive our particular the to CyberCoders vertical Systems' by provider FinTech, all Telecommunications accounts. achieve growth in industry accounts our in for the with services, and XX.X%, or with vertical, accounts. double-digit led Gross services aerospace and up growth be strength healthcare and QX and to continued all due the commercial government an placement across by

segment's modern totaled increase of revenues an We projects quarter. consulting management expand XX:XX XX.X% remain an clients, of also continue commercial revenues acquisition our of led QX million, from we of build provide to our enterprise expand our over capabilities derived strong value digital transformation, bring ASGN's our value clients. and offerings year. opportunities performance. out so that Revenues the and consulting and to solution Commercial to our last identify set consulting $XXX.X in important continue we strength our consulting workforce diversified during work to the source

our on digital financial enhance provide to XX:XX transactions, in great new and in help clients tools In digital chain customer consulting supply order business to and particular, demand. support, transformation starting their any are Our develop comparative pathways ASGN we and projects, which over funded our also quarter, executed defines additional quarter color will will be our provide the quarters. commercial won during consulting industry this as purposes, bookings the ensuing work that given of for bookings amount and quarterly book-to-bill results.

commercial of last is quarter. over X our up into Commercial to the consulting year. This for a totaled bookings bookings $XXX.X consulting total revenues book-to-bill book-to-bill quarter. QX million, a the Our the for ratio of XX:XX to of translates XX.X% for the quarter X.X

which the of second year-over-year our and Now important that While Defense, strong, we the contract XX:XX quarter XXXX. Department this our support a into first segment With mind consulting acquired of that, and Pierce, trailing provides Ed Defense segment Examples U.S. solutions XX:XX a quarter, the from from comparisons QX end, contracts of New tougher to faces the I contract mix, command, solutions. last remainder agency contracts will business businesses cyber trend the provide Army's financial commercial coverage of included to segment's the quarter the margins $X.X second call from with of other quarter and agencies, margins IT were XX:XX our the services or approximately keep Research Network Army up lower it ratio carry healthy our the efforts to billion, and our turn in consulting and mission-critical and the DISA and outlook with significantly remains awards over reimbursable Information to to to Gross XXXX. the contract Ed? the commercial other quarter let's business discuss quarter turn than At as consistent of of CFO security Lab, and revenues. continues Technology in the ratio Systems the improvements expectations. contribution is $XXX.X times, mix Government and to awarded a expansion our in through were other Government quarter $XXX agencies. head flagship intelligence contract with Agency overall civilian for with to for during for the the related XX-month in backlog Federal to to segment, totaled we million. EBITDA Federal X.X XXXX federal positively adjusted last for business year which revenues totaled million, Revenues year QX a contract a guidance. results included line contract higher-margin Enterprise lower DoD types our the cost of which and

Edward Pierce

Good Ted. Thanks, afternoon, everyone. XX:XX

or up a higher organic quarter year. contribution the financial compared our last margins Revenues the which quarter achieved difficult segment, XX:XX from XX.X% highest and segment consulting, performance up contribution The grew XX% up additional up quarter with the after and the and consulting commercial our permanent expansion were revenues for of creative adjusted the grew staffing our double-digit quarter adjusted acquisitions, Government last streams quarter million million, of our all billion, for both despite quarter the performance acquisitions of guidance first revenue included XX.X% was gross year-over-year double-digits adjusting of revenues the Gross in acquisitions operating year-over-year were gross from digital and were placement first year-over-year. the $X.X with revenues. billable XX.X%. income, margins the for for growth XX.X% revenue was year segment, segment at profit, effects from the XXXX. coming from for billable IT million, Federal the in our the in the XX:XX services prior earlier, reflected than completed year commercial one revenues. EBITDA QX last higher additional and $XX.X line were estimates. the our our million, accounted rates mentioned our our for Government Ted comparable. of from Commercial consistent services. the were Federal This commercial day segments. segment's $XXX.X EBITDA the and the rate revenue growth As quarter, approximately carry with exceeded Revenues The for from For and of guidance than estimates. Adjusting during first consistency $XXX.X in year divisions quarter XX.X% day growth Revenues performance and marketing, as $XXX.X over and XX:XX commercial

gross included was benefited quarter cost XX:XX year up the basis over last of in driven basis partially creative from quarter result margin higher our the XXX XXX from services made the first year-over-year. the points that expansion of Federal prior-year points the of permanent operations services business segment a web resulted and Both certain in placement of XX:XX was in high increase for renew commercial the in in point investments year. low business. million, and XXXX, guidance business year-over-year, commensurate offsetting acquired in the the consulting, investments project changes QX XX:XX XX.X% segment million, the of contracts, and employee mix. QX up end as reflecting margin of high result renewed for Government million was expenses SG&A in a mainly Revenues the in year-over-year. The with our last XX.X% of a revenues a and mix. which are XXX web Gross services. including business The level cost improvements in year-over-year. last XXX in for and of expansion from last was a marketing, margin These growth contracts, was continuing XX.X% to low effects lower XX.X%, certain Commercial The margin up project, year-over-year $XX.X IT by headcount, compensation, contribution $XX.X basis QX margin from business growth and segment not of not in XX.X% Adjusted Income from double-digit of high exceeded reported year-over-year XX.X%, expansion including our $XXX were cash reimbursable estimates year. the to Gross high-margin acquisitions reimbursable applications segments Gross chose our changes up the was improvement margin was were comparable. of growth systems. adjusted were current the outstanding difficult up businesses basis digital points year, million credit end, $XXX.X facility. This and At mix, business, up XXXX. and quarter margin XX:XX from support no cash under revolving were revenues EBITDA XX.X%. there margin equivalents borrowings EBITDA of $XXX.X to million

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

During of million common company's repurchase on approximately XXX,XXX of the $XX.X the the quarter, we spent stock. shares

sequential Our and up difficult of of the last implied will lower assume set from prior-year employment earnings our in revenues year-over-year. These higher financial On net X.X%. sequential quarter production revenue million For of our $XX.X XX:XX current XX:XX and million is the year $XX.X growth are a margin With XXXX, estimating acquisitions EBITDA full in XX.X made of to estimates growth expenses. last billable $X.XXX quarter, contribution are of to XX% which and year year-over-year be placement of the for last our made year to we're on flat XXXX. to revenues high estimate comparable on We to estimates high in and the billion mix slightly billion, permanent days are release the expansion QX rate comments $XX.X same of XX.X% We're number of forth of quarter a slightly our trends, margins. result XXXX, the materials. updating a we adjusted as include call. basis, a earnings down XX.X% level an revenues respect gross of in estimating supplemental in second earnings will million adjusted due reflects the of EBITDA of adjusted project million, for million be days on QX $X.XXX $XXX year, income and we to over to consulted as which $XXX EBITDA based

adjusted year-over-year EBITDA also and in expansion margins. We are projecting our gross

to last expect a range EBITDA XX.X% This digital of year. lower mix adjusted driven a and our consulting remarks. will and permanent you back XX:XX of the business. XX% to We sustainable I'll for is offset partially placement margin it to your time, over revenues, by support Ted operating XX.X%, turn investments mix revenues created from high, Thank commercial growth for and closing marketing up platform Ted? in in from higher our by some

Theodore Hanson

Ed. Thanks, XX:XX

has planning. XX:XX our Chief continue formally becoming of first be our been we've serving part and announce months, announced well-respected Officer today Financial Directors and role of his our the XX:XX outstanding company's CEO, as of a Ed that will to long-time behalf to team succession XXXX. thank like of Ed and entire first has as role wish we develop strategic to since to August of down this President part XXXX. leadership, partner the With our service Over as stepping I'd the number an in International. Brink's, past retirement. leader. XXXX, to Brink's, Brinker provided our planned shoes. Ed's company, CFO, at candidate where member President for a will joins in and roles him Officer is finding with of several integral a then been be in in the coming increasing years public Ed CFO I of in quarter a for Jamba that Marie Officer, ASGN's CFO Marie me and changes of as invaluable I our remain and Chief Perry executive assume as to ago, XX:XX of since said, CFO announce through those well-deserved would including XX Chief KPMG. as officially ASGN finance assumed Marie August. team. also have Interim team Executive retirement Pierce will ASGN from Officer his in Board nearly Financial an recently like ideal an I began On his four CFO within our leadership. Executive Company's American best the in to Executive Vice our spent Ed finance with to long-term accounting responsibility she accomplished She Chief Financial U.S. to we her and Marie role lines, the Treasurer, ample us President, multiple and career Vice us the the fill pleased opportunity Vice Controller, on roles served and of Juice as an She very I'm orderly and that selective held was years proven Along of Airlines. division. and very Prior Administrative Marie at welcomed

her the many meet transitioning months. before we'll We several have and months coming hit on a shadow Marie excited to the you to to opportunity running role. have of board are very over Ed new hope and the opportunity had great that Marie into ground her for has

These that last our third addition, disclosures the baseline reversal the deep that to aligning strategic joining has our a adhering became our I conducted into our rights, and new year, leveraging by human up Nations a a push and XXXX finance this be year, new SEC talented In We XXXX I'm labor, and our CFO and participant that few in with as seamless. of strategies strategic I to we've the environmental, as in report. priorities, Compact, to reporting posted and governance past made backing corporate XX,XXX accomplishments, pleased many laid our her the significant ASGN support role environment, put transition annual XX:XX proposals its operations introducing efforts website. ESG anti-corruption. progress We execute past our of place and commitment and priorities team hope which and as a are full out forward to we on Marie ESG that plan. well our week, anticipate to United of our In cybersecurity also in principles take continue report our will to response frameworks, Global just May announce gas just greenhouse our corporate will in you issued the we the her Speaking robust financial priorities. ahead objectives to financial this opportunity read ASGN augmented social companies report of responsibility. several have XX:XX report, social against on

thank highest employees. of incredible standards. ESG Our not would your it purpose commitment corporate and sustainability for not the for be to were to report possible of team like I'd ASGN our all

We accomplished together we advancing entire With and prepared for first quarter. of committed support that, ASGN lot behalf our have progress. Board XX:XX remarks thank of a you remain our your of our continually to Directors company. this the our the team, we for concludes and On continued

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

Operator

XX:XX William a question-and-answer we this line proceed [Operator And Instructions] question be first will with the Blair. Maggie comes conducting At session. question. your with of Nolan Please time, from our

Maggie Nolan

is are in clients is given XX:XX retirement, there Thank about hearing commercial Ed tone And any Marie. three budgeting from hearing you current your and change the consulting the Congrats My on from ago? side. to you. you considerations environments? welcome, on What first were question months what

Theodore Hanson

let Hey, I'll Ted. Rand one. it's XX:XX Maggie, that take

Randolph Blazer

don't I change we've in seen tone. a think Maggie, XX:XX

as fiscal transition we quarter. we you year fiscal path, committed IT around year if year last a I see work to in year, quicker normally of of as we business in in that the a transition we saw actually numbers, clients from think end and other the the than will, our of pickup, less And this you initiatives. as have see improvement first can their as digitization the to both well most as are certain our drop-off

still of and think that forward. claim I much can very anything other So don't moving all pretty you positive seems than

Theodore Hanson

I XX:XX from table growth still demand evidence, I guess strong two accelerating, just seems is and would but anecdotally And -- then [indiscernible] pipeline across clients.

what we see. that's So

Maggie Nolan

favorably XX:XX margins. here well, Okay. the And commentary impacted then Thanks. there's as quarters mix of guidance a been where your has couple and

contemplating view So also, that in wage normalized are then business? these guide? kind impact you more for start level levels And levels inflation of as should of to adjusted we what the EBITDA from

Theodore Hanson

I'll right? turn September, business in both it the think our parts I change to XX:XX Yeah. progression and -- growth plan accelerate, in showed going the the Ed. going mix the to margin to me let continue growth which say believe of a did we're Ed, the we over EBITDA Well, of you I'll because last business But affects, we to was higher-margin margins, three-year something, in

Edward Pierce

on of XX:XX Yes. terms And consider we're the -- we're in in look, what full side. just you we about should And about said seeing high relative very growth the I year. fortunate services that think Commercial expectations, high-margin think our in

what our than terms we margin And when XX.X. plan three-year in We EBITDA contemplated the to range XX.X expect initial we higher between did the and that's of year.

are about definitely of more in see that good, look the of definitely But now, the spots. this things for right we improving. settle. as quarters beneficiaries in things later say So we very are We'll and kind have occurring to that's growth

Maggie Nolan

Thanks. And on you. Thank the XX:XX then wage And for That's inflation? that's helpful. all me.

Theodore Hanson

this XX:XX comes mean, I think -- I I quarter. mean every is up this

You see margins, attention the pay our think which I in to place they're most is that, gross the expanding. can

bill way doubt with of relates by although, it to, is the about deal wage that, we're with no rate. able inflation there to we're And out as So clients to it, that there, workforce, then, increased for else, are they own we're, because are the have deal been again, for increases able to productivity. obviously, costs in internal everyone but of with just that our there, able like

feel our both if So good we deal client you I on is with we this that rate it think just we productivity, in to bill and they're of which relates to will, piece march always and are. part the continue as who of a numbers can

Maggie Nolan

XX:XX Thanks.

Operator

Tobey Please Sommer question. with your Truist of proceed question the XX:XX with from Our next comes line Securities.

Tobey Sommer

context could the Thanks. A difference and if perm seeing guidance stepping expense. your on us would a of for color are in hiring? higher I you little by giving of bit Thanks. wondering be up helpful. a sort perm little was lower bit margin start What XX:XX or there? of drivers you labor Are

Theodore Hanson

you that do to want take one? Ed, XX:XX

Edward Pierce

Tobey, in the it to sequential Look, a say prem, to going as mix, of basis relates specifics we from to about see and we're is Yeah. that terms of XX give QX firm but to I I mix points not it's QX, will we did XX:XX improvement growth. we perm outlier. in QX terms And an to phenomenal pretty going sort QX of expect back more of saw historic in return QX, norms. in is what and mean, that in

that's to basis why had and pop sequentially it's thinking so, dip in QX, our going XX down then headcount to And we're we labor in back QX it's a costs, about last QX, of points where increase. And it was probably year.

Theodore Hanson

XX:XX in demand market. Yeah. there -- obviously, for investing We're it. Tobey, we're is the to be

opportunities And well us raise be count to so add on head productivity. continue internal our you're to going those to to own work to reach IT able as see as systems

around that what I think so, right, called a out expenses, his the higher from was section Ed And SG&A in margin standpoint?

Edward Pierce

Yes. XX:XX

Tobey Sommer

and market [indiscernible] you the this I'm process continue? another well to as and the about unit? consulting high momentum had growth really [indiscernible]. before your Thanks. are trying some ability XX:XX to heavy double-digit rates of we How and one thinking in sneak position opportunity as in You've

Theodore Hanson

Rand? XX:XX

Randolph Blazer

I of XX:XX make Of a work. Listen, course. think it to couple elements there's

account for expansion plans First has all, we own digital their great footprint. base that their have own of of a

stronger, application solution some work, even just not our in our now kinds doing work. cloud number We're the implementation, requirement. continuing transformation, in Number can to of data one So and accounts. that's to we strength we those bring get to we're analysis that digital add every quarter offerings as two,

workforce like years of we with communities. array of staffing IT firm. have and account So that contract of we what strength, the employee built call else employee we number talent And have the increasing services with great nobody IT building a access to we've lots U.S. two we relationship base, have contingent over as

can in So bring we And to experience access bear have have the clients rich you all talent, access you the have to talent we kind talent to that can and base, and services that application the with accounts, when we working. experience. databases, right increasing great to solution have shown we it's offer, of the industry

Theodore Hanson

the want to have business. to quarter XX:XX our don't difficult we're growth. that deceleration some less booking growth. are to much numbers coming for double-digit obviously, quarter I going they confused to Tobey, and in we comps, we If you anyone I I that add that be will difficult continue of maybe strong thing in, lower that one here demand would be the don't up comps have released of more XXXX. the they'd for strong the -- look It pipeline or because second to want still We lack that demand. mistake is this us, shows our show rest to but with

Tobey Sommer

XX:XX Thank you. That's helpful.

Operator

next proceed your Our Bank Balsky question question. of comes from with the Heather Please line XX:XX of America. with

Heather Balsky

question. Thank Hi. for taking XX:XX my you

do you is you in is leveraging of may little the macro side sort rate middle in thinking You one the be think first versus The much a bit your business discretionary a half economic environment? see could how into and the companies on much work companies of and to about that how commercial are tighter sort back next even But the is environment? I just and guess I their of rising what asked. pull And need accomplish in a kind in of, of of project are back necessary sort how guess, a markets? or year Maggie

Theodore Hanson

XX:XX Right.

do This employment upfront, I'll I'm clients' clients say less -- to going of them accomplish what doing. answer an that to IT initiatives, mean need is is but to and they're about It's help by primarily right? our spending business is this this I story. our by driven let our their IT one, Heather, Rand ability really So our

that early of view so -- been, that, these transformation, right, ever Rand, is of there's stages we're the which to and the than early this, and still that's in it's clients. Our important is discretionary legs digital less to in

Randolph Blazer

have recognize What's pressure couple and spending discretionary? look, if us made toward coming? If right? there's a considered curtail it's downward million that you've economy the because I we moves mean, I will $XX goes question, down economy. in think of Yeah. the of XX:XX we the that kind the a recession, asked factors withstand -- the economy

If 'XX, of units, 'XX up to our infrastructure. years, of go back recession, of is infrastructure if That's back discretionary. The that a you commercial times. worst to held combination and It's you a very our Apex, COVID on. in slightly it in not steady stays particularly -- work go work to lot the the

going in discretionary. I it of of work more is, of the the that side, digital and/or if the on Some airlines but the it's segment if like were I then affected, sectors not see the XX:XX the there's strong believe did work remember, that a mean around very and And cloud let's all lot don't say, have question were is a industries. marketplace, period. you're in we few that. implementations sectors spending. withstood of you industry consultative transformation. other were we the for is is, But them stop off to Yes, COVID its a back,

mean have go numbers it's chain the consumer So of clients accounts. back -- I I whether in electronically. 'XX XXXX, the transactions, strength are before, transactions portfolio In the that's statusing we discretionary. with digital They XXXX, the to across done believe marketing as electronically, of and we to supply XX% is as their I transformation actions, they work, all workforce in of the by out transactions to Ted, don't -- we've and will, actions, America, the considered of communication XX it's better their marketplace, XX% be think, our were transformation and down that to pointed ways size emerging, -- their well XX:XX in consumer both things soul, heart be continue more corporate attention electronic. to it and new journey productive to come now becoming digital build to find last chain have capture to digital is I logistics that you companies the the revenues, footprint on So have help of if internal all supply correctly months. as in all

to So -- not you I I think there this anymore. think as don't as discretionary is but mean ramble,

Theodore Hanson

we mean during the quarter XXXX. industry like downturn, play in economic And of I a Government, it say would all most XX:XX the second you countercyclical with saw portfolio that revenue XX% our with in mix times out of large-cap Federal which I commercial is diversification, said,

don't big federal think there well. on I agencies. again, spending whatever and our but is going XXX out is Fortune by business driven make so, IT predictions And think the of economy, we're weather government these we we'll And to very

Randolph Blazer

Accenture digital in some to lot calls of and By things. growth. Microsoft continue these their if Amazon way, and areas earnings the the by their are the same where today. listening of They the coming to companies revenues to listening important toward a of in you're of said and way, the out, see in their that some that XX:XX America the are software just same you're kind corporate point they space to cloud transformation growth And other technology

just this. not So, us it's saying

-- the think I this. seeing we're community of is certain amount a

Theodore Hanson

not really started, Heather, mean business. our where back is down works of than the Well I Now economy placement part you economic small sure, it of to if firm little but XX:XX a That's the business. today. less the very and would be to driver turn that's a

Heather Balsky

the regards in the perm in quarter, I'm Just I the quarter you unique. think strong. I with anything to though. thorough going curious that? drove another there exceptionally environment Can going speak Great. on to that placement you this the why said one XX:XX just was it was appreciate in, ask, so answer. Was

Theodore Hanson

the strong has of been in the that in of think unique. what market probably workforce by strength. was build of had now. I first that would quarter, that I that to the last much wouldn't it see and half level quarter you activity XX:XX kind was -- first typically, the But the the through need of clients second that was strength the say, unique most year probably part in

just was else. where Heather, probably it fell, it more anything than So

Heather Balsky

really Thank XX:XX Okay. you so That's much. helpful.

Operator

question next Jeff XX:XX the Our Capital from Silber Markets. comes line of Please question. your proceed with BMO with

Jeff Silber

much. so Thanks XX:XX

Ed, for First wish I luck all, help many wanted of the best been and of all do thank the really over and It's I appreciate you to years. you it. just years

Edward Pierce

you. Thank XX:XX

Jeff Silber

XX:XX Sure.

said I'm to back to be days. macroenvironment, tone change know not sorry question, et investors' minds cetera. my go the seeing of a or I In on you're to seems but terms of you slowdown, really that these

than past or projects any the that know so? up the months you over have in been expected, earlier that this seeing that few I are space pick happens time, have more citing a of they ending the companies bit Some but all other than you some been

Theodore Hanson

Rand? XX:XX

Randolph Blazer

go right are our existing it. mean seen I If No. projects of curtailment that time. well, we these not we've growth coming and -- behind back I completion we've quickly, again other see look example, this bookings at large in and numbers for XX:XX you number, projects given a pretty bookings large or in and

seen, we some others So have the no, what seen haven't of maybe yet.

Jeff Silber

how talked with great the to of to and at up is terms staff been? led we've both market internal that my is finding difficult past Has recruiters. or XX:XX I your in recruiters. has Okay. terms do this still of terms your hear. know of it that question in difficult keeping the in follow-up That's And all has about in it

Randolph Blazer

that keep right? can't I the will, overcome light, it's that business, still you so we're of it's keep in if volumes all recruiters, core -- our systems commented and us it now. as ago, didn't do workforce, that planned that let the in have headcounts. for recruiting hasn't past So do and away, through happening our work over to at we gone up. and but compensation continued mean, to months. productivity our XX:XX I We for say other with increases see business, shrinkage side, we're are minutes also think better systems our going a dealt productivity them few look, hiring. the so some We've bravo wait. fulfilling, still It's which seeing in I because there, Jeff. XX the we you mean, can not Ted we anticipating, to to I example, if and and certainly forward. curtail, anticipated key to and of people and keep the keep to helped comp still our well a us we're build when and we're core our -- it's a order money be The of doing in are some is moving to staffing top-notch them. this us And business of make lot high that We we're a keep they're best and course, performing talent. variable people

Jeff Silber

Thank much. appreciate Okay. so color. XX:XX you the Really

Operator

question with proceed Baird. the from line of Please comes next Mark with Our XX:XX your Marcon question.

Mark Marcon

XX:XX Good afternoon, everybody.

add Ed. to my want It's also Ed decades. to best I all, thanks worked and wishes, -- for of we've together First

everything So you've really the appreciate that done and all wish you best.

Edward Pierce

or if Mark. about age I it's more know Thanks, telling don't yours. XX:XX my

Mark Marcon

for been XX:XX Ted you I consulting the the regards to and But Can of it's you accounts that while. think you the you're dealing XXX using Systems. [indiscernible] of we replacing? Rand. of typically you a to With the talk bit terms about your What penetration Apex who business, in How are or are little -- back when on Fortune them are penetration rate I in and with many consulting? 'XXs both. regards the of adoption a remember seeing with taking XXX-plus

Randolph Blazer

XX:XX Well, the first a our that clients, about are we've we're of to of of reported Fortune clients. all, now staffing you penetration accounts them consulting XXX increased third we've

and the prerogatives. consulting -- that number on and But and So they we increase depending internal year, own staffing account Mark. their and be every both may --

XXXX the we're that, expanded to Fortune to others. for We've out looking our addition in now. So targeting

us you're had unlike more project. a business. in competing we've in certain great don't as I ourselves, you work. to amount giving their you're for can replacing? that we are project getting In tell going XX:XX they're consulting, we as work, by prove who growth and And competing staffing, more we're we if chance. are Who the and know you're by and work success replacing our get of program, a necessarily. So, We're

environment we've them and this? talent. convince are it always bring we who and and can to done But team's There's frameworks with we depends the against competing. the So intimacy their our ability that and get our something can on lot nature competes that of mentioned a firms of work their the IT

bring another their and talent on we pretty key them have can we the thing find a other across. where rejigger deployment contingent quickly, are is think to I may move use model, because and other talent projects the lineups that firms

areas have a a where also in there work. solution show acquisition. as they more or and digital the to are more workforce some going general about certain recent the build talked to we able on the us draw, I we're quicker transformation we our because them XX:XX consider. We've added very through profile we allow wouldn't little application I little were things to And us what's in continue bit industries going migration think nimble, of now advantages which should different -- our capability, data I some to we've maps the management, a road sectors, helping is that So good and said, gain be area, And be in but at. industries capability on

Mark Marcon

you're great. And -- assignment it growth. XX:XX you're -- showing then, looks That's commercial, also really the within like on side, strong

are seeing like you demand And materials want not it's of cannibalizing IT obviously, terms But So the a business in given higher for staffing and per pure time just basis? it what it's se. on the you pure margins. shift to

Randolph Blazer

our And retail announced staffing in accounts you of we're accounts is the our just one double-digits. top as think the also not side is consulting I double-digits. Well, branch-centric XX:XX growing side growing as growing double-digits but well

against. So and we're everything it's growth pretty much in facing across the board off

Theodore Hanson

we've service Mark, historically, about It's like XX:XX service an been I think offerings, would offering. -- staffing IT it, right?

invest it. do to continue that, We in

are a to two, we have going. And here, We value now clients. which higher on want with the number service then keep is obviously, we uptake

them, flying we're right? so, both if And on will, of you

Mark Marcon

federal a open months about side? how the then next And envisioning you're and side, seeing for XX:XX terms bid just you're on six can the coming little up in what you that some talk loosening contracts on the of bit of and

Theodore Hanson

XX:XX Yes.

awards streets are, will, second they and good. It's It's we have is here so the you you go in the after say, the in that slow So budgets, a little as of new hit matriculating I going that to quarter. that would contracting officers. seeing we're if terms

movement. bit of I see it's be a of budget going good think fiscal to to I'd a probably activity really now, have second, is busy thing as up pick beginning to and we little a the we're government late year. the say is right we But the and third get going end quarter to

Mark Marcon

great to again, Congrats That's hear. Ed. XX:XX

Edward Pierce

Thank XX:XX you.

Operator

from next Sommer which Tobey line with XX:XX Please of the proceed question question. And Securities. your our Truist comes

Tobey Sommer

Thanks. XX:XX

concentration I'll arena? Just in customer look like what Thank sort in you. how size consulting. well. tip just in outside Ed two as you of contracts that us of at up project follow-ups, on government of my if you're the context, and the describe commercial And hat Could the and update I the company could, maybe concentration to or stepping

Theodore Hanson

we standpoint, Yes. reportable have first, XX:XX don't concentration concentration. on Well, a any

clients, concentration. with there's I'll that let going these Rand to on talk certainly out nothing but in So bigger of call work. terms to

Randolph Blazer

operational think kinds three work Data significant DevOps, work lot growing all a digital body analysis in is are lumps, software workforce what enterprise, we if of in that the see services in behind agile lot The parts of our work. of digital big and modern is that, in customer as a techniques. capability the a in put of Infor around those get cloud, work there's development, of that certainly I the I though, transformation, of of that plethora total a a those emerging end in chain now get three, you'll using to work our handle fastest do management, or a different part the because transformation data three is comes to some notes talked XX:XX you some the among and but in or We're it. last to area that to you use starting year big work efficiencies transaction. contact So work There's added supply data with enrich lot of options? build experience areas. mean, at there. we've of application How out

flavor. a mean you I this So give

it's things. number different So a of a lot of

Theodore Hanson

work in I of then XX:XX to this, typically, size, now. kind it was of six-figure seven-figure and terms days progressing mean, of work early And in the

months. work, eight-figure than Now that's XX work longer

it. if you the as I underlies is think And some that -- project our the capability of will, of -- with size the growth the size the of is and well. growing So here growing

Randolph Blazer

a ahead. XX:XX Yes. thing. That's natural Go

Tobey Sommer

to going for a Growth an another been and zagging ECS. decelerating was question, kind there digging organic basis. of on has while, one I XX:XX been ask my on last

to War also able get about budget at that more fashion a have Wilson year perspective, Now next result and budget a you growth, be probably is think with likely that your again? and and outpace try of maybe itself get in as and a least Russia-Ukraine the we its industry my industry let's the from normal Do more close a to growth and unit to rates the to foot positioned gap front say. on

Theodore Hanson

XX:XX I do, Tobey.

learning. to If be is to we in the It's areas spending IT that money in you going about going It's cyber. where it's modernization. government the think to AI-machine be to practice, in be be going going an

So world, Security if And our you are we're winning in in is, most side, customers budget the currents, that on the but Justice. or the which attractive capabilities. think in of are Homeland the that's will, I areas that's whether side, fast the DoD the in obviously, if ones Fed of who civilian

of our RPI in mean with health, I spot. right acquisition the Now we're in

now, going works the marketplace I it's than And becomes you time, itself rates better right if the will, we we're on anyway. grow there. we out better expect, market than has and like would business mean, So reported the we fruition, think in there. historically, right of spots growing once to about growth tell over I we're think that I market, than grown probably there. you a get be market to budget so better I would will basis, market,

Tobey Sommer

you. Thank XX:XX

Operator

remarks. turn the back session. question-and-answer closing And have reached to Hanson of over call And XX:XX the we the end I'll for Ted now

Theodore Hanson

and look second to quarter Great. forward July. today everybody results you being we Well, want for talking XX:XX to we here about in to thank our

Operator

today's at you for and lines time. your this conference disconnect concludes you And Thank XX:XX your participation. may this

ASGN (ASGN) 27 Apr 222022 Q1 Earnings call transcript