2014 Analyst Day

114 Pages·2014·7.76 MB·English

by  Cynthia Kondratieff

On Assignment, Inc.
2014 Analyst Day
March 26, 2014
Safe Harbor
This presentation contains “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 the Company's
anticipated future 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, the Company makes no assurances that estimates of
revenues, gross margin, SG&A, Adjusted EBITDA, cash flow and other financial metrics
will be achieved. Factors that could cause or contribute to such differences include actual
demand for our services, our ability to attract, train and retain qualified staffing consultants,
our ability to remain competitive in obtaining and retaining staffing clients, the availability of
qualified temporary and permanent placement professionals, management of our growth,
continued performance of our enterprise-wide information systems, and other risks
detailed from time to time in our reports filed with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year ended December 31,
2013, as filed with the SEC on March 3, 2014. We specifically disclaim any intention or
duty to update any forward-looking statements contained in this presentation.
2
ASGN: A Decade of Growth
s
n
o Peter Dameris Established $1B Surpassed $1B Developed 5 Year
i
t
c Appointed CEO revenue goal Strategic Plan
A
NYSE Listing

c
i Implemented Divested Nurse
g
e Revitalization Travel
t
a
r Plan
t
S Divested Allied
Healthcare
s
n
o
i
t
i
s
i
u
q
c
A
)
M
$
(

e $373 $516 $1,138 $1,632
u
n
e
v
e
R
Note: Revenues are as reported in the Company’s 2013 10-K,
3
which do not include revenues from the Nurse Travel and Allied divisions that were sold in 2013.
Delivering Shareholder Value
CUMULATIVE TOTAL RETURN SUMMARY
December 2013
2008 2009 2010 2011 2012 2013
On Assignment, Inc. (ASGN) Cum $ 100.00 126.10 143.74 197.18 357.67 615.87
Cumulative Total Return Summary
NYSE Market Index Cum $ 100.00 128.95 146.46 141.46 164.45 207.85
700
SIC Code Index Cum $ 100.00 145.87 183.72 131.94 151.38 247.67
600
On Assignment, Inc. (ASGN)
NYSE Market Index
500
SIC Code Index
400
300
200
100
0
2008 2009 2010 2011 2012 2013
Notes: 1) Assumes $100 invested on January 1, 2008 and dividends reinvested.
2) SIC Code No. 736 Index – Personnel Supply Services Company Index. 4
Compelling Results
• Generated 10 year revenue CAGR of 22.8%
• Proven ability to leverage and de-leverage
• Delivered industry leading margins and conversion rates
• Increased market cap from $150 million to $2.0 billion
• Maintained strong cash flow through economic cycles
• Executed strategic and accretive acquisitions

5
ASGN Is a Growth Story

$3
Billon

Revenue
+100 to 200 bps
Adjusted EBITDA Margin
6
On Assignment Strategic Plan
2014 - 2018
Reviewed Analyzed Assessed
industry professional staffing market
dynamics market segments opportunity
Refined long-term Developed strategic
vision and goals objectives and
growth plans
7
Staffing Industry Dynamics
• For every 100 U.S.
employees, there are 2 temp
U.S. Temp Penetration Rate 2011-2013
workers
• Current U.S. temp penetration
2.10%
rate is close to the historical
2.00% peak in April 2000
• Temp penetration is expected
1.90%
to reach a new high in 2014
1.80%
• U.S. still well below temp
penetration rate in developed
1.70%
European economies
1.60%
• Rate for computer and
J A SOND J FMAM J J A SOND J FMAM J J A SOND
mathematical temporary
2011 2012 2013
occupations expanding rapidly
SOURCES: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, BMO Capital Markets 8
Staffing Industry Dynamics
GDP Is a Significant Predictor of Staffing Industry Growth
Staffing Industry Revenue Growth
(Excl. PEO/Outplacement) as function of GDP growth
30.0%

t
e
k
r
a) 20.0%
Mtn
e
y
m
r
tse 10.0%
uc
da Commercial
l
np 46%
I gtu 0.0%
nO
i/
fO
f -10.0%
aE
t
SP
ni .lc -20.0%
ex
ge
n(
ae -30.0%
z
h
i
CS

Y
-40.0%
/
Y
-6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
Y/Y Change in GDP
SOURCE: U.S. Bureau of Economic Analysis and Staffing Industry Analysts 9
Staffing Industry Dynamics
Long-Term Shift from Commercial to Professional Staffing
• Increasing level of contract vs.
permanent staffing
– Relieves legislative burdens
– Reduces costs
Professional
Professional
36% Commercial
– Provides flexibility, quality
54%
Commercial 46%
and control
64%
• Continuing economic
uncertainty
1995 2013

Staffing Industry Staffing Industry
Revenue: Revenue:

$55.4B $134.4B

SOURCE: Staffing Industry Analysts 10