ASGN (ASGN) 26 Apr 182018 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to ASGN Incorporated First Quarter 2018 Earnings Call. [Operator Instructions]. And as a reminder, today's call is being recorded. I would now like to turn the conference over to our host, CFO, Ed Pierce. Please go ahead, sir.

you us thank and afternoon, for today. joining Good Dameris, Officer; of Ted me ECS. Systems; today President; Executive Peter are of President President With Hanson, Chief Rand George Wilson, and Apex Blazer,

I'd we statements. forward-looking like Before started, to everyone presentation that remind contains our get

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

be net For measures in income. over certain as non-GAAP press GAAP such the now EBITDA supplement prepared measures. the remarks and website. non-GAAP the are our turn between and to your release. section included adjusted comparable intended adjusted Relations the the supplemental in we'll Peter today's Dameris. of GAAP will measures These our convenience, on Reconciliations materials referencing are found Investor that Please I to measures, non-GAAP can call be note and call, this

Thank you, to XXXX ASGN Quarter Conference Ed. Call. the Earnings First Welcome

closed first X. today's given the segments the to the greater discussing Federal Ted we over review During April I closing be today, will of quarter financial quarter comment will in a detail, detailed will quarter ECS' On then occurred the the and call acquisition Rand and before acquisition the the specifics of estimates of Ed first call, we our operating serve, performance regarding performance the our post-quarter on highlights, our and our of second for on call change. results turning closing ECS markets our name the of discuss XXXX. our for not

available answer Wilson qualitative George be will ECS. regarding However, questions to

up We the open will questions. then for call

end of X.X% results. for were results were estimates. financial or our our high Revenues first for million, Across our previously of the the year-over-year. at up onto above the quarter quarter announced the Now all quarter guided metrics, $XXX.X

among reflected, the five many rate rate. and marked in relationships the IT growth rate model. delivery our of company This consecutive growth things, that last our increase the quarter the the established industry's of continuing XXth other of deepening years staffing the projected adoption grew customer Our above large over annual

Our size above-market rates, published solid staffing us and than well grow believe are service and the in we offerings allow industry growth faster growth we positioned future. to to generate revenue

to Creative was Cash Oxford our with strong million saw $XX at national Customer be Free strong large growth first for expectations. a was of have quarter to of the in first and Circle revenues we our million million, XXXX. from Creative flow measure continues return or XX, growth $XX.X X.X% for above our EBITDA quarter, and up the acquisition, in 'XX. compared Circle, and we $XX.X million, the X.X% of And the quarter a year-over-year repaid revenues or through March generation since core revenue at mid-market our local, at XX.X% the demand During Apex of Adjusted and across $XX.X was at Systems accounts. segment. debt non-GAAP quarter, the the million 'XX. closing and of cash or of $XXX quarter Oxford

ECS X.XXx March of XX XXXX the XX, acquisition. leverage of with Our adjusted as closing X.Xx increased ratio trailing the was EBITDA approximately and month to

averaged and over same $XX.X excluded up in the end debt, XXXX. down quarter, our pay reduce this expect by With we respect will second recent ratio to the our million of X.XXx to approximately to of quarter During placement of the second which period leverage $XX revenues X.X% and weekly the production direct segments, at conversion, our weeks, last our expenses Apex for XXXX. Oxford revenues, million two assignment billable which

revenues range estimate the we and will second $XXX ECS, million between million quarter. for $XXX for As

misclassification demand augmentation continuing we needs signs also viable human the believe Fractionalization regarding Our greater service is see our the its driven in as customers contractors. of of IT positioned ongoing as to workforce and part way technology of adoption IT evolves avoid consulting. are demand the customers, We're debate a staffing of well to to to by or only usage contract is by is We accelerating independent labor. risk high alternative and using as services that from the to continue gig economy continues business staff the to industry's see of on outsourcing, the of offshoring employees rapidly adopted. capital

the and secular creating are customers industry. staffing have realizing entire attractive this for Our professional growth opportunities

federal new robust defense, see in spending to the against funding positive contract new intelligence continues federal and and of awards, services the benefits areas and contracts Our of long-term IT civilian visibility learning. existing increased solutions agency and artificial forward particularly machine business intelligence budgets, and of

cloud, billion engineering DevOps, ECS' our begin expertise $XXX an complements of engagements support and solutions and announced ECS' we with XXXX are included nearly week, in combined as be ECS to in position be the on enter market held government. this Also, IT on offerings York York acquisition human services acquisition end modernization we will as the will our specialized well XX on will meeting our artificial IT hosting a.m. experience The at our capital will X:XX cybersecurity, doubles position New highly closing we our beginning and and offerings. biometrics. U.S. in be government consolidated Day intelligence the billion Lotte first-hand Hotel at Palace but federal This As strengthen to commercial the results April highly time. and publicly company $XXX reminder, skill domain Monday this City. premier ECS' and to advanced and the addressable New of Analyst consolidated May Eastern will XXXX. Investor technical as provider science and cybersecurity, space ECS announced delivers in a Federal the results results, quarter's included QX, not we X,

management of challenges and and Our is strategic you contact our positioning featuring a Seating and on There attending, guest plans. interested present speakers. will risks event team be executive also please Investor technology, ADDO limited, long-term growth for the are Relations. if this panel discussion will in future

that our Finally, turn remind over call review I operations President, ASGN on you I'd name to the now officially over Rand. of would to Ted April our like changed Ted? Hanson, the and Incorporated the to we to then who will X, XXXX. like segments to

our better Thanks, marketing, engineering both markets end our with creative Peter. Demand anticipated. the segment in segments in serve, Sciences Systems, We to achieve which and growth led IT, few steady. largest growth division results of will Apex digital discuss and market the performance with continue above pleased rates Rand and Oxford minutes. our were a segment, remains performing in the their than the quarter Apex Life we rate

permanent permanent Sciences X.X% Our Oxford is and strong. account had led expectations. quarter core, CyberCoders, which growth, XX.X% with of our the delivered Oxford revenues, engineering business and revenues, core offerings. initial our on for Momentum up throughout basis. sequentially and revenues, unit placement Life business accounts Growth Sciences CyberCoders, exceeded was Oxford a mid-single-digit segment's segment is followed of Life was our service comprised of $XXX.X X.X% year-over-year was which revenues Revenues approximately X% Europe, placement our up year-over-year, which year-over-year. sequential by the European increased which million, XX.X% in which by our for segment, expectations. of X.X% line were the

steady. XXXX. expense for the Based work will offerings Demand year-over-year better now the specifically, unit lost margin and improve Much mid-single our itself latest Life basis the EBITDA results. within core down our Sciences first Oxford and exceeded in segment. I above expectations. turn show sets over the margin smallest on Gross continues productivity Life Rand segment segment adjusted skill quarter management XX digits Our and revenue, and within of expectations in the due hard Europe, our to the mix to quarter's Benelux core in Blazer. was points call initial EBITDA to segment's grew the markets the year-over-year contributor for to to results total remains business the was geographic at Oxford exceeded up over the XX.X%, the of Sciences

of The in again quarter. and Revenues accounts in growth which reported Creative which segment Systems, for once business the led course, the the XX.X% for you. the for Apex first Apex year-over-year. results Thank year-over-year quarter units, Systems, million, the $XXX.X up XX.X% quarter. of revenues, solid with XX.X% segment's Life were Apex Circle the segment, way Sciences Ted. consists, of Great, Apex first

revenues performance areas. Our our in grew single high all expectations exceeded slightly unit's Creative and digits Circle

unit, Sciences basis and growth Life as-reported on the double-digit an in revenue achieved expectations. exceeded our also quarter StratAcuity, Our including

services, IT in achieved financial smaller principal - Systems. growth which was our technology that provide growing accounts revenue usually propelled retail, number all services verticals accounts insight double-digit in and aerospace you than is and growth of on consumer year-over-year; with accounts accounts; we by more additional top also healthcare do services which our factors, performance in with retail were our continued and we our the single-digit exhibited positive and and I'll As and Revenues into a business growth including, industry accounts calls, the service, of Apex little double-digit unit for a in unit, accounts industry industrial, defense, business are top growth telecommunications growth our both quarter. brand-centric these

continues strong, higher as to reported reflecting a differentials, in our has bill perm expectations. year-over-year for SOW segment rate Gross rate/pay quarters for in remained reduction some expenses Our increased the exceed higher revenue mix payroll bookings of was on basis. placement previous and and tax type margin been year-over-year, largely also work a

ASGN's continued also results. of Our contribution and had year-over-year. successful up sales, another strong to Ed and the by financial revenue segment's Apex of performance very the segment I'll productivity driven a in high call our to This turn is gross delivery EBITDA overall is now teams. to discuss EBITDA quarter. infrastructure profit reflects conversion over basis percent Ed? grew Overall, on and

Thanks, Rand.

of down line to expense the from decrease $X.X amortization related of onetime acquisition. loan a lower reflected gross the the points higher-margin unemployment million amendment million of in for foreign credit days. was $X.X the for margin XX.X%, The fund changes of in credit quarter were SG&A, in included result were our in and estimates X.X% and related year. of Interest for in exchange rates debt revenues our SG&A million revenues facility states and facility expenses for cost acquired million, $XXX.X of and of of as Revenues of the in mentioned, business Interest announced for the was which $X.X with facility, higher $X.X average which the certain up and StratAcuity, The a X.X% million, $X.X the quarter quarter to revenues our a XXXX. expense of for expenses amendments quarter from interest of the previously Gross deferred expense year-over-year of number differences of to a XXXX. in high included end in lower our was Peter interest million at adjusting balances ECS acquisition reported ECS. announced was As rate slightly basis in on the last tax estimates. previously of quarter related the in million margin million to divisions. interest the on credit $X.X and year-over-year state or year-over-year up lower year-over-year certain up of to rates XX% mix comprised after quarter the expansion $X.X and first previously basis the billable August in expenses XX year-over-year. financial were was

of last not credit amendment ECS were in per million Adjusted facility assets for up share, million first planning after Our or included to integration from things share on effective $X.XX income of million other quarter our the per million and benefits income tax adjusted $X.X quarter compensation, financial and was million activities $XX expenses share intangible among strategic to income release. in of per to XX.X%, the related non-GAAP estimates. and Cash quarter include the Reconciliations related first measure, $XX.X of tax for income was up expenses measures, which from stock-based the income was lower EBITDA which $XX.X the flows million. share, included estimate, was adjusts which the XXXX. net million. and acquisition. $XX.X diluted $XX.X Adjusted in in and or are or measure are $X.X press Net for than million from EBITDA amortization cash adjusted flow $XX.X non-GAAP quarter and was and previously acquisition, $X.XX million, or year. for net or announced primarily tax do excess rate expenses $X.XX non-GAAP quarter per both $XX.X diluted we in Net $X.XX our today's operating free were net

quarter, or the on XX% second estimates include total for note estimated overall quarter please commenting estimates ECS, for for adjusted of our Before estimates revenues and for the the for accounts second which that financial quarter. for second our financial EBITDA of approximately statement the the quarter XX.X%

includes the in of interest in April million net amendment added a the adjusted our This onetime of ECS. credit of related Second, is for $X.X facility to expense income. to estimate of back our fund acquisition expense the determination expense

a that to employees performance compensation note for on price please compensation the closing expense was stock-based and were XXXX approved increasing $X.X first were stock the which ECS expense calculated the of that accounting using granted management million the of is $XX.XX, the targets awards quarter XXXX and due Third, day the price over the purposes by performance of committee. awards to

million to moving income of related $X.XX $XX.X income diluted to estimating $X.XX tax $X.XX EBITDA XXXX. to the net net quarter not Now deduction adjusted million of revenues per or savings net diluted cash to amortization, $XXX per estimates We're million, and $XX.X our the trademarks. million, financial Adjusted $XX.X on Adjusted second include the share or million, for $XXX income $XXX $XX.X overall $XXX to of or does and to $X.XX of million million. goodwill share. of million to of

now quarterly $X.X diluted of quarter. per million the $X.XX or share the are With the $X.XX tax first cash diluted from savings $X.X per million, ECS, up share, or acquisition in

assumes call commented, our accretion previously per is a be beginning On have the year-over-year we for which XXXX, will turn accretive our acquisition to quarter now our forma second adjusted pro ECS of X.X% the the in estimates second quarter As remarks. the $X.XX of estimate acquisition ECS to to at to of basis, closing of the revenues occurred I income. net the over share. consolidated approximately We Peter some $X.XX for X%. growth imply to back

Thanks, Ed.

We of our services one. what into advantage positioned take breadth IT secular as scale, we believe in service for changes historic believe us continue and and well the industry of are to to digital has we growth technology size world, dynamic more the move

and on efforts grow of to profitably employees, entire talented open like we ASGN Operator? like remain and we allowed of is many where thank progress our questions. for increase new growth. team I proud our would now today. dedicated rate our call the welcome participants partners While once again We'd performance, at to very our us focused to are whose continuing to have ECS, to our to business loyal, the

Fargo. Instructions]. our question comes [Operator of Edward And Wells from first Caso

can in if I sort rolling you for understand XX.X% gross margin good the to And expectations to a forward, is second guidance had Trying the in? that's us quarter reset effect going down case? for the our sequentially. XX%, quarter, help of QX, ECS the you understand this but of

Yes.

start go Ed as there going other kind that you labor. turn I'll Ed, the to things cost of and contingent of are know, Pierce. to into then aren't the contractors services I'm federal But over that So, in it and

we're so our required nice to pertinent the - gross comparable consolidated by margins, EBITDA GAAP margins, business. And quite substantially include than ours according on and to historic to but our margin. they them more And ECS, which focus their than to in really lower are it's were gross

because just of inclusion. the services cost So of

it Pierce? to consolidated need Assignment kind just look On old and really the margin. gross dissect So at you Ed versus of

of, guidance QX in give of, probably that some XX.X% you will me But this. XX%. you points you for data guidance, of, framing gave terms additional, the help mentioned we Ed, So the sort sort let to of

may business, So But it been for if excluding better. XX.X% this XX.X%. be running, to core look bifurcate look and the sort much of, at has gross is and ASGN margin what slightly ECS you, the alone, ECS business our at that's pretty

prepared revenues. of going XX.X% ECS, about XX%. around to mentioned be mind, ECS account total bear for our in that it's will For remarks, in And somewhere we our

My estimate go the other looks X% my end I second of question quarter, about the midpoint is what range? revenue your would What at high - the organic did right? the would get have you if right math for to is to

see trends continue first just we Well, to the exiting we that the saw quarter.

And now McHugh Tim to the of William line from Blair.

step about away of is conclusions Peter, this any the any trends macro? can be elaborate guess, you businesses bit any, from a above, you look Are maybe to I a seems just and other were you quarter guess, better, like bit that broadly Maybe, I each take just ask I that I underlying insights from with statement favorable quarter? drew more at guess, the a I'd it guess, little you a macro? as than little curious I this just just there the on

Right.

I'll it first a But said, and much start I'll - pretty turn did Ted. second incremental fourth, So over we we first. growth growth did you over as and sequential see over imply our estimate to then

implies them what the momentum that continue And And budget, segment? year-over-year we continuing broadly in We fair productive specifically saw forcefully not of and adopted, through more end a is where our the compete continue productive our of we scale Oxford little We offering under about that sequential to share business businesses and over market, we're already we've get So guide the accepted the can and why bit first, in our good operating relates growth vis-à-vis as and and to see business. contracts visibility. a see our to to we us we see ECS, which others. benefits growth it a size don't a there. and service see market. second guidance, be again, resolutions, more healthy won, than go we you specifics Ted, have

Sure. prepared growth which Well, we growth in rates. improving had kind he think, Peter where I said just remarks well that by were up led Apex and at pretty summed strong it Circle, Creative his of

weren't side, and second continuing we - ECS. for Oxford And prior guidance to growth Peter, the I forward. hopeful, in business our hit On we now march help quarter in think, that the at we're the growth, back on levels to and the quarters

good I is - touching excluding And like pretty margin specifically? how there. on in And Oxford progress How margin few expansion year room made improvement last it underlying much I Oxford, we Okay. for of about from kind standpoint, left, quarters? I guess, the the think seems next do on guess, a showing guess, ECS over to opportunity you've

have piece we're we right you need I It got not there. And from but further going think get of SG&A to productivity I and but our growth stay supplemental the has we're go, put there that in at in can think we track course we're to the to that it instead Oxford. rate see on management, just we've the out, just to increasing done.

Tobey to now SunTrust. the from Sommer line of And

headcount have in kind do With a think what of one about you you fight you mapped described faster that this guide as you respect horizon of to in consultant you playing us to that for? your than what longer-term with where how growth kind little given the investments, to because area staffing slightly and out, is a XQ incremental

curve. the stayed of Toby, we ahead

previous some starting off So of operating some hires. of leverage we're get these to

better more have model. And been they've working have some and the at their off focused to staff than they're the to But they had billable hired hiring that that investments. in Oxford, of is is the them from they've hiring awarded significant work - impact those meet internal needs against. we 'XX done investment ECS been We of bench of and because QX of recycled dollars contracts

need is There continues. search. hiring for So no

because had to and hiring You of saw digits, recruitment able were of couple years. what having grow the which past hiring we're better and levels we getting double productivity is benefits normal over of the high

profit growth? headcount start consultant improvement to staffing versus trying to still Oxford in at staffing you're expect that the Or you here revenue consultant? from gross you to Would grow - harvesting are given

you No, I growth. should think see a

through cycle, headcounts come little quarters back bit. a of will, where expect three we've of - our kind year and where shrunk this evened for you I a in to our Where if the think grow. we've we headcount now we've out

if 'XX, revenue prepared the of that, from Tobey, just about the some think go quarter specifics got look at much people to how we quarter back we of the add gave many we remarks hired. you and and people 'XX to first and hired those I you we for fourth how

So we being not had down people were bit hired many little really a how is the considering from. significant Oxford virtually that and getting we at revenue no headcount

particularly in rates, compensation of decent mix With respect at I growth, to some factors? this that of represent does Oxford, underlying Or guess, kind the other is a bill inflation? snapshot

Tobey, I think, it's more business anything than else. mix,

and terms with on respect ECS, the and budget quarter that of environment contract awards kind award pace look can the look Okay. you this XQ, you And given of just to the does you what extent then comment like? of in refreshed at of bulk contract to what offers expect - as the

on George, you answer want give color we'll do basis. a on Right, that? to qualitative a little

But things being concerned the forecasting mean, flow Sure. sequestration. the some I with of numbers now about a take the I there we're nice of a pretty passed, an budget opportunities. that business we're seeing out still that right think lot account,

and a the stuff as attention this earlier, focus we've mentioned out and forward Peter year. is out that's contracts year on awarded, that simply our of got that we - really our we've move staffing close As this this been lot already on

business the Okay. that that me. on impacts reliant if the and reform international sourced you for are of been business what model and comment visa kind labor? orders any built in seeing scrutiny thing you're Peter, executive Last from H-XB have on could on

weren't working skill The X and to. $XX,XXX. visas offshore it's companies people is they those domestic Top and The supposed Whereas, focus set weeks getting these bringing continue that Indian people H-XB a was of that is couple up and labor. average the we Microsoft - more way on year. story in Apple, people Street And all mid-tier, and the lower-tier benefit, X in visas, Top were Well, Wall they're using $XXX,XXX, a visas we're There actually Google. Right. a ago, it's people the - this getting there the are to there not Journal, in awarded see was pay awarded

it's So actually the labor. to, workforce XX% way working and supposed domestic W-X it's is our of

So as labor, on focus there's the more that the domestic them. who and to have going we're have ones they're other them people

seeing we're offshore We're seeing awarded to awarded. again models, that. So business that might have not those are getting been models

Some that not is it repatriated. I a customer stuff been I we're were with work new I offshore getting I winning seeing and internal is do previously Or that market of my Do getting the labor? of do augmenting looking project the share work against it through it with do consulting offshore labor? some They had internally? models. at, staff? when do it the do it's awarded Do But on

of Jeff And line now from the Silber BMO. to

on a digging Henry It's Chien for just had Jeff. into on I question just model. delivery your

if that larger that? you that and and orders? is margin larger from, As scale, is perspective about, can out grow you mostly projects there in thinking I'm any growth your how fill you're say, curious a benefits just that Or come build from

margin. you Day. is I gross higher Well, about have to that we'll for the save will what gross business, talking if some Analyst a But we're tell that margin, SOW the of tends

that's business nice real further are that businesses. at moving The business help taking valued to us. where way margin our is want and EBITDA necessarily be a It's be if higher looking business of profit reason double-digit have they our that's helped. federal you're there, into driving EBITDA them customers, the partner us legacy to we're we gain customers not our going margins to it's the to IT If the or solutions

particular doing seeing and well them been has ad in-house. we're ad world, projects, means versus more to going in-house this customers us moving like much need augment agencies agencies. internal they and the away come their we're and skill in departments and But work requires very digital more the We back by take responsibility augment documented is so, that or on That the creative to the for that specialized in-house. from to seeing so And staff. that campaigns

So tech human to reality large that's manage and quicker. it's variable it's versus the developed getting It's cost. their more cost capital technology into want going and cycles being cost trend continue. turning a or of And disruptive how to disintermediating just and - corporations fixed the shorter quicker

Okay. number Yes, of think model really kind is either ECS, that's different curious at or now. the projects of Analyst curious. just the business, performance forecast helpful. about on speak longer judge whether or it's we or that of a And projects, Day, just look there metric if you of to and imagine that sort kind you'll framework of I but to that right

working Yes, backlog. a let us educate they're off you that at the Analyst Day. know But as of you

it's architected that having or needs fill of orders then completed, in the have and customer getting have a need they to so performed and set them been and getting be versus work projects And a date. seeking to that from start

visibility and of But distinctions the something. the greater customer Analyst just Day, for we'll is all save that on on draw be different may you there as ways, forecasting out stall if the some flush in revenue how to except a and to So view what segments. the kind

now of from Mark [Operator R.W. the Instructions]. Marcon And Baird. to line

say that's what the growth side? of on To then to time on strong regards think straight staff extent And done growth if due the similar but... augmentation SOW in there. was both, do an share? you would of that Are level by being Or driven And board? of taking I you're is seeing materials suspect improved growth? basis. and it's a the so, you demand Apex, With on to the you just the bit terms it across

And qualitatively. rates Right. you break Rand, between that? the why we size can the staff address don't relative SOW you and don't augmentation, but out address growth

Yes.

at or client they growth They're and consultative or staffing we're need. account, look services, value-added doesn't services, we and services Mark, and it the whether what the think, I providing then differentiate. looking for

our needs on in out based yes we faster growing we're try macro all round and our needs logged the accounts it's service to those that an value-added we're growing, But decision the our the so. that account-by-account grow As to staffing, requirements accounts is client areas, a can in business servicing and and is what to the make portfolio probably little is and clients on the add sure are. than but of consulting value sense, answer

displacement growth if Rand, that I really conversion within the of broad-based, the comment is to just are wondering only staff like could do the gaining experiencing over to in as you staff coming not whether aug, and that aug And just your a of you as feel terms the is share? offshore strong result, model? some was some of you're growth you But

think there we're related what is spend know by look it account. as any gaining looked at don't aug, Peter and how percent we are. to, and share much We at spends we account the account staff I question we of in the

we And know we're growing we're that competitors. know the so in focused growing we and we're on accounts our against

So obviously, we're taking market share.

I you're The broad-based. markets is think right. it

bringing be one but that them. across and up seems that And seeing consulting, bubbles working can As can use, best CIO five all we we those board. of offshore migration the excellence, organic, they into the work the be account and we all and that offsource, companies said battle, and in resources to relationship a to the staffing, are the different along, and have on has that's stand we from focus service happened to transactional winning value client

That's How the then is about the lumpy comment was think just tend qualitatively terms George about it what ECS acceleration great. And thinking if on it think or should for does in projects. bit we in of how be of just should we deceleration in terms how guidance I some business? that fulfilling And And - just little a could of to terms in as second quarter-to-quarter growth the potentially the quarter? a longer of about you're the basis? that from means wondering

address qualitative please? you would George, a that basis, on

Yes, absolutely.

we single-digits of year projects. way like used, continue we a perform and terms we And we completing to good and projects pretty we're on previously in as other this the high what we good in lumpy, quarter-over-quarter, So quarter-to-quarter, swings growth that's about give a are that the you we startup overall, buy forecasting. provided. a qualitative projects, certain probably year-over-year. term out basis, close have forecast got to can materials and comfortable use going certain doing term to - quarter-by-quarter really of things think, we feel But doing some And

Great.

the of So or and basically I the project starts quarter-to-quarter? just ends little got bit some some year for lumpiness high a from to mean that project single-digits still leads and stands we've

guidance kind Mark, some that. and comment not to make given of any we're further going we've you on

full year. We gave

are not We additional gave to guidance, year to give we you color going and any that. full

Okay, to all. it. understand just That's wanted

No, I understand. I appreciate.

everybody mean question. is else to I going So ask same the

seeing occurring? get better So you message just might up ended Circle, on figured as environment we there. is to account out the do Creative everybody. that it call, wins can ask you it way the some that do growth think regards you nice or in there - well With are think to Is is the

said a the starting you we've rate. high rate, improve as sustainable good can away from which address what now things you long-term some are we've We're a to the growth Rand, it's Rand things to focused. end previous add? little pause 'XX internally in first be pause in impact growth done did of bit that, We business, a to and positively it. But calls, would further it's we let market. - some I'll great Well,

market good don't doing ahead we're think, The And marketing. a from we previous were than client years. in we're we're digital little to accounts fanned We're bit what I up recognizing shades probably about think Yes, marketing market. you to responding is sure on our say creative out of pretty is being Peter, things or to the that correct. needs. and getting And keeping shifting make more the in I

So all there positives. is a on lot I and things all going think, at of once,

no have continue. in queue. Please We the questions more

forward Well, Day your time at May attention and for of your many Thank we you appreciate attention. seeing look you to the on Analyst and XX.

conclude does today. that and Teleconference Thank for you for AT&T using you. and conference Service. for Thank participation your our ladies gentlemen, And Executive

now disconnect. may You