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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 22, 1996
ON ASSIGNMENT, INC.
(Exact name of registrant as specified in charter)
Delaware 0-20540 94-4023433
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
26651 West Agoura Road, Calabasas, California 91302
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code: (818) 878-7900
Not applicable
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On October 22, 1996 On Assignment, Inc. reported record
financial results for the third quarter and nine months ended September 30,
1996. For the quarter, revenues rose to $23,303,000 from $19,201,000 a year ago,
an increase of 21 percent. Net income increased 38 percent to $1,573,000, or
$0.29 per share, from $1,143,000, or $0.21 per share.
Record numbers of employees on assignment and clients, and
rising Account Manager productivity in all three divisions -- Lab Support,
Finance Support, and EnviroStaff -- contributed to revenue and profit growth.
Company-wide profitability (including gross, operating, and net margins)
improved for both the quarter and the nine months, reflecting the benefit of
higher revenue from existing productive capacity.
For the nine months ended September 30, 1996, revenues were
$63,643,000, compared with $52,530,000 for the 1995 period, an increase of 21
percent. Net income rose 26 percent to $3,801,000, or $0.70 per share, from
$3,020,000, or $0.57 per share. The net income amount for the 1996 period
includes the one-time charge of $0.04 per share relating to the acquisition of
EnviroStaff.
ITEM 7. EXHIBITS.
(c) Exhibits:
Exhibit
Number
20.1 Press Release: "On Assignment, Inc. Reports 1996 Third
Quarter and Nine Months Results."
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
ON ASSIGNMENT, INC.
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(Registrant)
Date: October 22, 1996 By: /s/ Ronald W. Rudolph
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Name: Ronald W. Rudolph
Title: Senior Vice President, Chief
Financial Officer and Secretary
3
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EXHIBIT INDEX
Description of Document
<TABLE>
<CAPTION>
Exhibit
Number
- ------
<S> <C>
20.1 Press Release: "On Assignment, Inc. Reports 1996 Third
Quarter and Nine Months Results."
</TABLE>
4
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Exhibit 20.1
PRESS RELEASE
ON ASSIGNMENT, INC. REPORTS 1996 THIRD QUARTER AND NINE MONTHS RESULTS
Calabasas, CA, October 22, 1996 -- On Assignment, Inc. (NASDAQ:ASGN) today
reported record financial results for the third quarter and nine months ended
September 30, 1996. For the quarter, revenues rose to $23,303,000 from
$19,201,000 a year ago, an increase of 21 percent. Net income increased 38
percent to $1,573,000, or $0.29 per share, from $1,143,000, or $0.21 per share.
Record numbers of employees on assignment and clients, and rising Account
Manager productivity in all three divisions -- Lab Support, Finance Support, and
EnviroStaff -- contributed to revenue and profit growth. Company-wide
profitability (including gross, operating, and net margins) improved for both
the quarter and the nine months, reflecting the benefit of higher revenue from
existing productive capacity.
For the nine months ended September 30, 1996, revenues were $63,643,000,
compared with $52,530,000 for the 1995 period, an increase of 21 percent. Net
income rose 26 percent to $3,801,000, or $0.70 per share, from $3,020,000, or
$0.57 per share. The net income amount for the 1996 period includes the one-time
charge of $0.04 per share relating to the acquisition of EnviroStaff.
"During the third quarter we launched an innovative system for apprising current
and prospective clients of temporary employees with relevant skills and
experience," said H. Tom Buelter, Chairman and Chief Executive Officer. "By
efficiently delivering targeted information about available professionals on a
weekly basis, Assignment Ready(SM) provides valuable input for faster and better
temporary staffing decisions. In addition, the new system provides the Account
Manager with more time to make Quality Assignments, which should result in more
orders and assignments, further enhancing productivity."
Mr. Buelter also commented on early results from the new Account Manager
recruiting process, which systematically identifies candidates with the highest
probability of success. "The members of the first class of Apprentices, who have
completed their initial training program and have begun to grow their
businesses, are expected to contribute to our future performance. To make the
Account Manager hiring process even more efficient, we have installed a video
conferencing facility at our headquarters in Calabasas, which will allow
management to conduct final interviews of candidates located virtually anywhere
in the United States on short notice."
On Assignment, Inc., through its Lab Support, EnviroStaff, and Finance Support
divisions, is a leading provider of temporary professionals to the scientific,
environmental, and financial industries. On Assignment's branch network
encompasses 82 branch offices in 44 operational markets across the United
States. "Assignment Ready" is a service mark of On Assignment, Inc.
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On Assignment, Inc. Common Stock is traded on the NASDAQ Stock Market under the
symbol ASGN.
Except for the historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties, including the integration of acquired operations, and the
management of growth, and other risks detailed from time to time in the
Company's reports filed with the Securities and Exchange Commission, including
the Company's Annual Report on Form 10-K for the year ended December 31, 1995,
as filed with the SEC on March 19, 1996.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Ronald W. Rudolph
Senior Vice President, Finance and Administration,
and Chief Financial Officer
(818) 878-7900
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(Unaudited)
(In thousands of dollars, except per share amounts)
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Total Revenues $23,303 $19,201 $63,643 $52,530
Cost of Services 16,244 13,486 44,292 36,784
------- ------- ------- -------
Gross Profit 7,059 5,715 19,351 15,746
Operating Expenses 4,554 3,923 12,956 11,014
------- ------- ------- -------
Operating Income 2,505 1,792 6,395 4,732
Non-Recurring Acquisition Costs 0 0 401 0
------- ------- ------- -------
Income Before Interest
and Income Taxes 2,505 1,792 5,994 4,732
Interest Income, net 130 97 370 285
------- ------- ------- -------
Pretax Income 2,635 1,889 6,364 5,017
Income Taxes 1,062 746 2,563 1,997
------- ------- ------- -------
Net Income $ 1,573 $ 1,143 $ 3,801 $ 3,020
======= ======= ======= =======
Earnings Per Share $ 0.29 $ 0.21 $ 0.70 $ 0.57
======= ======= ======= =======
Weighted Average
Shares Outstanding 5,449 5,328 5,445 5,244
======= ======= ======= =======
</TABLE>
SUMMARY CONSOLIDATED BALANCE SHEET DATA
<TABLE>
<CAPTION>
AS OF SEPTEMBER 30
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1996 1995
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<S> <C> <C>
Cash, Cash Equivalents
and Marketable Securities $12,930 * $ 7,872 *
Working Capital 21,418 13,736
Total Assets 30,220 22,689
Long-term Liabilities 0 0
Stockholders' Equity 25,187 18,664
</TABLE>
* Includes $0 and $1,500 in non-current marketable securities as of September
30, 1996 and 1995, respectively.
