ASGN Incorporated has recently released its 10-K report, offering insights into its financial performance and operations for the year ended December 31, 2023. The company provides information technology services and professional solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments, Commercial and Federal Government.
- Revenues for the year were $4.5 billion, down 2.8% year-over-year. Excluding contributions from acquisitions, revenues declined 5.6% year-over-year.
- Commercial Segment revenues declined by 7.6% year-over-year, while Federal Government Segment revenues increased by 11.4% year-over-year.
- Total IT consulting services revenues were $2.4 billion, up 12.7% year-over-year.
- Gross profit declined by 6.5% on a revenue decline of 2.8%, with a gross margin of 28.8%, a compression of 110 basis points year-over-year.
- Selling, general, and administrative expenses were $844.2 million, representing 19.0% of revenues, compared with $895.0 million (19.5% of revenues) in 2022.
- Amortization of intangible assets was $71.7 million, up from $65.1 million in 2022.
- Interest expense was $66.4 million, up from $45.9 million in 2022.
- The provision for income taxes was $78.4 million, down from $96.7 million in 2022.
- Income from continuing operations was $219.3 million, down from $266.9 million in 2022.
- Net income was $219.3 million in 2023, down from $268.1 million in 2022.
Commercial Segment - Consulting Metrics:
- Commercial consulting bookings were $1,351.9 million in 2023, compared to $1,192.2 million in 2022.
- The book-to-bill ratio for commercial consulting revenues was 1.2 to 1 in 2023, compared to 1.2 to 1 in 2022.
Federal Government Segment Metrics:
- New Contract Awards were $1,022.2 million in 2023, compared to $1,073.3 million in 2022.
- The book-to-bill ratio for the Federal Government Segment was 0.8 to 1 in 2023, compared to 0.9 to 1 in 2022.
Liquidity and Capital Resources:
- Net cash provided by operating activities was $456.9 million in 2023, compared with $307.8 million in 2022.
- Net cash used in investing activities in 2023 was $40.5 million, compared to $510.0 million in 2022.
- Net cash used in financing activities was $310.9 million in 2023, compared to $256.5 million in 2022.
ASGN Incorporated had no off-balance sheet arrangements as of December 31, 2023. As a result of these announcements, the company's shares have moved -0.5% on the market, and are now trading at a price of $95.18. For more information, read the company's full 10-K submission here.
