ASGN Incorporated has recently released its 10-K report for the year ended December 31, 2024. The company operates in the technology, digital, and creative fields, providing IT services and solutions to commercial and government sectors in the United States, Canada, and Europe. ASGN operates through two segments: Commercial and Federal Government. The Commercial Segment offers consulting, creative digital marketing, and permanent placement services, while the Federal Government Segment provides mission-critical solutions to defense, intelligence communities, and federal civilian agencies.
In the year 2024, ASGN reported total revenues of $4.1 billion, representing a 7.9% decrease from the previous year. The Commercial Segment's revenues were down 9.6% year-over-year, while the Federal Government Segment's revenues decreased by 3.5%. The company's gross margin expanded by 10 basis points to 28.9%, primarily due to a higher mix of Commercial consulting revenues with higher margins.
Selling, general, and administrative expenses (SG&A) were $821.2 million, representing 20.0% of revenues, compared to $844.2 million (19.0% of revenues) in 2023. Amortization of intangible assets decreased to $58.1 million from $71.7 million in 2023, primarily due to the accelerated amortization method and older intangibles reaching the end of their useful lives.
Net income for the year was $175.2 million, down from $219.3 million in 2023. ASGN's Commercial consulting bookings were valued at $1,281.3 million, with a book-to-bill ratio of 1.1 to 1. The Federal Government Segment reported new contract awards of $1,340.5 million, with a book-to-bill ratio of 1.1 to 1.
The company's liquidity and capital resources remained strong, with working capital at $550.6 million and cash and cash equivalents at $205.2 million. ASGN reported net cash provided by operating activities of $400.0 million, down from $456.9 million in 2023. The company had full availability under a $500.0 million revolving credit facility and believes its cash, expected operating cash flows, and availability under the credit facility will be sufficient to meet its obligations and capital expenditure needs for the next 12 months.
ASGN's long-term debt obligations, including principal payments and estimated interest and fees, totaled $1,300.7 million. The company also had operating leases and purchase obligations totaling $74.0 million and $43.6 million, respectively. Additionally, ASGN had workers' compensation loss reserves of $2.8 million, undrawn stand-by letters of credit of $3.7 million, and a deferred compensation plan liability of $17.8 million.
As of December 31, 2024, ASGN had no off-balance sheet arrangements. The company also provided a discussion of new accounting pronouncements in its 10-K report. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $67.46. For more information, read the company's full 10-K submission here.
