ASGN (ASGN) 25 Apr 192019 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will be conducting a question-and-answer session. Instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. to call like Ms. to now would turn over the your I Esterkin Investor Kimberly Relations. from ahead. go Please

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

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

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

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

the Thank XXXX earnings you, first Assignment to Kimberly. conference Welcome quarter On call.

for ASGN's results performance 'XX. review Joining of quarter me financial today for are first and will Ted the and our George for estimates the our review quarter Pierce Hanson, who will quarter Rand Wilson second Blazer Ed and who the

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first a building client this of us my on I to all want participate in the family priority. company. I enter had great role want thank who who everyone allowed personal me And employee, I new to at my has to As confidence thank note company, every shareholder make the to has and in

would economy. the this ASGN of work With our results. ahead are to quarter's discuss positioning, team management size, years that, turn Ted over Ted? in because to best of like I to performed is and how most call senior today's Our importantly

factors, serve, see improvement at some This was positioned high to XX.X% year-over-year our believe as including a I'll we highlights up quarter Peter. today's needs driven of viable demand you, to as million, in a key IT for evolves services. customers' augmentation to alternative consulting XXX.X outsourcing, basis of rapidly due business, a markets the continue on service the by are commenting reported which staff forma the Revenues from we IT and technology adoption well of and quarter. is were by adopted. begin to level number for basis. offshoring as a as the continues a discussion Thank or part high pro customers, our that greater well financial We to on on XX.X%

EBITDA million be and generation million at times ratio or our quarter twelve was expectations. our faster above offerings was cash was XX.X service and to revenue Free continues size and rates, we above-market leverage to grow solid that X.XX growth in generate at months adjusted believe IT our and services cash Adjusted future. EBITDA allow to end. positioned XX.X our published are us flow fact, than the In we industry growth well trailing

last Oxford assignment our quarter, up the placement times two over weekly to same are leverage XXXX. weeks We ratio our and the expenses end approximately Segments, direct at second revenues, recent times and end in revenues, be averaged production approximately million which billable that XX X.XX the quarter of at at X Apex the year. for the will of XX.X% our of conversion, estimating With exclude and period the respect the

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

more secured million regarding will shortly. detail in quarter, recent awards in the awards. new speak XXX.X these George During ECS

to and year-over-year quarter, Segment ASGN's three billable growth our day of one first Engineering and productive The the QX business and rates. Apex are and we was grew exiting completing on Digital/Creative contribute in Life and Oxford of Apex XXXX benefited exchange growth. our year-over-year. both segments needs The fewer For all currency Sciences IT, to stable Oxford projects at continued in all quarter. way X% Shifts serve grew the rate from the remain customers XX.X% our for in revenues remained markets supporting The favor. during segments in Segment and the Oxford favorable and their Marketing,

While X was billable growth and was due then mix. lower been lower points a pace. operations the million, of was and to the comments business in assignment certain of our than high revenues few percentage were in Apex take in reported. for revenues share up rate and growth with revenues rates, mix basis, permanent the growing of performance our to and we service the and at quarter X.X margins continue grow, our growth growth the from a the in quarter currency higher of placement constant as over domestic permanent down greater assignment services European to XXX.X staffing to placement make XXXX. segment first consultative Growth changes will the Rand performance practices. extent have lesser for than related faster driven year-over-year to the Gross added discuss from same the to assignment market are The was would work or On our down mainly by segment like an margin and year-over-year. offerings even the call a Segment I on segment would Oxford Revenues X% for of the who turn Segment. day value a

productivity the see to profit and continued I gross will Blazer. in now year-over-year conversion into We turn over to solid of improvement Rand better EBITDA. the call Rand?

than were business Creative units, Circle million, of which and Sciences, year-over-year quarter, $XXX.X the day Ted. first Apex consists Systems All of again Revenues results and segment's the for one Segment, right, XX.X% XX.X% results of solid billable now and Apex The quarter. XXXX. the the Apex, revenues thanks fewer in XX.X% includes segment for Apex on of grew accounted up the for year-over-year. quarter Systems reported Life which the

gross retail and year-over-year X.X%. a driven Margin growth the lower in Our from quarter a Growth at top assignment to unit quarter. perm XXXX of the XXXX. was accounts one fewer lower Segment in for Gross mix mainly in first related growth by placement relative quarter Creative to margin both our of accounts the was revenue our on in higher the billable units the to QX, posted day down compared Circle

growth both accounts Defense, consultative Please Growth rate or and adjustment of referenced one-time Our Business top industry posted Financial Telecommunications by three growth for know driven segment's our Sciences gross revenue The conversion overall were digits including note our press eight revenue lower accounts. Services, of lastly, segment's continued the accounts segment's a year-over-year. performance million work Creative industry growing work into including, accounts margins. rate. Services higher our you XXXX. of profit we remaining branch We gross retail five accounts, a with was in contracted the growth year-over-year Technology Adjusted and the $X.X was carry flat of expectations of that type Life as the accounts in and revenue rate. growth growth Circle top mid-single top in the grew slightly Healthcare, double-digit and accounts statement the at to of generally QX in industry the centric number considering top than release while verticals, or outpace double-digit also propelled in And after our Consumer EBITDA service, & quarter, lower Industrial, Overall, accounts. Aerospace was verticals factors, by Apex

of speak George for and As over overall focused George? additional realigning top team Segment Ted client focus market our on continues ECS remain noted I to the selected outpace will on the summarize, as Wilson the rate changing the to the segment base, strong Apex turn to IT industry, call results gain we such, of Apex's the now including Segment. to To share sales Circle continues demand growth growth to earlier. Creative our about posted quarter. the staffing accounts. the

were both ECS Rand. operational you, DHA. first performance from and XXX of in including a contribution a Thank million standpoint. quarter year-over-year, the revenues financial up XXXX, from XX good ECS XX.X% posted million, very

peer segment X%. the for Excluding space. but fourth EBITDA of federal DHA, growth quarter, year-over-year from margin the growth technology the average rate was over quarter, of in XXXX. from the This ahead was the remains first contribution ECS up quarter the the industry down

bill total healthy of contract X. in quarter, across million to $XXX.X to which ratio a X.X we of in customers, resulted very wide book secured the a range of awards During a

to to continue proposal in have a ECS. have an award leverage see We all-time architects over our and proposals opportunities. of high We currently proposal awaiting investments backlog these X.X for solution made billion, and and activity additional strong submitted therefore of teams

in include digital and recent awards Service Some to our contributing the support transformation. our project US to cybersecurity both growth Postal

partnerships backlog, contract We commercial to discuss also cloud, quarter, and I a and DHA. ASGN's the total with quarter ECS business strengthen end markets. providers our ECS artificial results In the will the FBI. ratio our we which results ECS' under skills call include a X.X $X.X Ed? the in technical healthy for to future. the consolidated forward sharing and are effort with the began management times work cybersecurity twelve-month over cyber, equates the first successes first pleased look key the turn with quarter to of to in Ed intelligence To coverage its to of to revenues during for the summarize, quarter. we quarter, billion financial continued now risk had Pierce At first trailing end in adjusted

Thanks, George.

ECS amounts on assume XX this quarter forma of pre-acquisition acquired earlier, XXXX, beginning mentioned basis. was of but not at for results the Ted occurred the year-over-year forma do of year. up were DHA, which include XX.X% As a revenues of Pro January the acquisition pro on the

contributed quarter, For million our to DHA XX approximately consolidated the revenues.

XX.X%, for was of of Approximately as margin of revenues. the year-over-year a gross X.X% assignment whole. of percentage exchange of in quarter XX.X% QX of days half DHA, ECS mix and the a DHA acquisition or our for with was DHA, XX.X% was pro compared acquisition. quarter expenses included in changes X in the lower rate have differences rates, billable year inclusion lower for growth the revenues remainder which expenses Gross the rate higher. to forma exclude than changes decline lower SG&A basis. would the the for for you mainly related currency last and been and and growth the year-over-year If integration to split were adjusting points in on and the the from a quarter quarter million related SG&A margin, has business mainly gross X.X XXX.X million mix margin placement permanent resulted between

to to also expenses a on do As million in estimates. these reminder, the rate of million our dispute expense Systems services up SG&A integrator. related periods guidance The by from systems million, X.X in large include prior slightly types resolution provided sequential related was of we quarter included pay interest not higher of QX. XX.X Interest expense in a a increase XX.X to rate. expense a for the Apex in primarily interest

was XX.X net we our million, was non-GAAP do And in not income of effective integration guidance by for This mainly Adjusted free a for year up and million, measure, and million are Note Our reset of preceding taxes that from million million flows the in in guidance other income adjusting and the was tax was occurs tax XX.X%, X.X of XX.X tax quarter for XXXX. was quarter basis. flow reform net within quarter the million. guidance include which quarter changes related the acquisition stock-based the million, a were first beginning the XX.X payment reported quarters the than the compensation, rate in the operating variance above first earned XXXX from that payroll previously cash income primarily at EBITDA partially our the XX.X quarter lower in cash free estimates. XX.X%. for of accrued rate to Adjusted expenses seasonally in our the XX annual from million benefits Net flows that compensation of effects the which and estimates. incentive was announced estimate Income, XXXX for year. estimates offset three of up in to that income due quarter XX.X first from Cash on excess million, on of tax on up was the activities was the for XX XXXX. quarter was XX.X of first

quarter normal on year, sales this year-over-year. a XX than our approximately XX day second now cash days comments quarter also of approximately accounts were free would outstanding. by estimates two was receivable days DSOs one make flow day Each XXXX. to the day's I million. of higher DSO guidance QX the For and for like up affected for is few sequentially

Estimated estimate will revenue second XX.X% This we to million. for same a XXX XX, growth days QX, billable to of from revenues range implies which XX.X% XXX million basis. For QX number is remarks. business on the mix over reported the I the our are will as whole. second to permanent placement gross from million last year-over-year changes down ECS we and than net placement a sequentially, revenues range as things, other the million margin among of estimate addition will considers, improve revenues, turn estimate other closing from of to would quarter of million, will range XX.X and range the but EBITDA also XX.X%. has margins of quarter estimate XX.X XX.X% some year. We range revenues. mix mix which to of income will permanent be XXXX call from This DHA, Peter? and We from gross the XXX.X our XX.X% in lower or that million XXX.X XX.X% of will adjusted now Peter back for the to to

Thanks, Ed.

has all and of our out, historic to As well growth period are a continue Without an and benefit coupled positioned secular world is labor results our quarterly and size changing. US in us prove our for during breadth improving Accelerating the government legislation occurring with market of scale, industry. a favorable services work to of services immigration market space. doubt, transformation, digital the forces

that with The team performance. foreseeable situated continue strong first future. our well into entire ASGN experiencing We ASGN was are optimistic to pleased results is the quarter

Thank Board lead Operator? time conclude over and of should Directors like our healthy now company moment want a me drive questions. performance for of all take to segments remainder remarks, this year. up a for to participants stockholders prepared thank would for over having to call strong have employees, I given open the that years. again the privilege the XX and your to last tailwind the our our in of to To I you the We

[Operator comes question from go Bisbee. Instructions] Please And first Gary our ahead.

it's real I'd afternoon. start a Yeah. to Good saying pleasure. Hi. want by been just Pete,

guidance; job a called wishes, your you but I a and and adjusted represented you you three done to the to earnings family. could certainly on items You've did, acquisition terrific release? that not the couple first - integration that added just other weren't it and see the go in circumstances, best the press charges and the business back you if to like one, added out your you've historically Ed, my back items were you the that under Questions looked sorry clarify, two

earnings we acquisition two back we're and The They other of income adjusted the the the the that in items were not. add not. resolution tax thing and integration so are expenses, matter, only

an much And how basis after on that been? have tax would

those have It million been items. two would for X.X

per And an on basis? adjusted share EPS

be about would - another cents. add so would That it or three

Couple more cents?

Yeah.

little length Okay, things within those any profitability great. business? major of that faster. know engagements of should us give I think Can different or in engagements relative about other the is a are any any talk like better, you or scale to differences? the to the we And then but you of traditional those engagements major consulting Apex growing the engagements color continue that assignment

Gary, related But might in Rand placement let's work, larger let Ted. engagement finish off. than work, for about business of things I'll the its and within say say staff couple one it be Hi, project it's the obviously, sure. the that any is a scale aug because

staff our they that in And, rate in it's aug are said, gross growing past, the in than greater business. at If at our you staff a aug business. than slightly the we've better margins as noted that are area

anything add? some color of to all So that. else give would Rand, around just you you

to you respond think question. I his No,

from of that, doesn't some pretty the a tone and last your there's I it just the been economic in seeing or level few you. you're softening quarter one it Thank quarters? much is some then the from or could, clients from last of your high described guidance change look like in And one, as any if you've much data the or

of quarters, marketplace. would so down think ebb in conversations a others. I any it the flow we've I noted, client But I as certain the industries I up describe I we're different and steady. are Rand Yeah, having or mean, that prior than are steady had than as more natural think industries don't that's view it we and think as

Great, thank you.

question from McVeigh. ahead. go next our Please Kevin comes And

there. any think Great, to winning thanks and let contract to backlog been in? me kind as the Hey, business. just want good It real along there great grows my talk way the so that pass wins family. versus there to of backlog. in course It's normal DH you're well. the XXX wishes million you you X.X about to best seems visibility how Is A kind any of working the be Would your of I comes just nuances by about to generic that with like to the about billion,

first Yeah, George go why you don't please.

contract of while range from awards got. that wide recently we a backlog come sure Yeah, did

some now above we like had them it's several But like of year the which course. driving driving quarters where And have we've is And that's which are posted normal increase. on is that. contracts extended is one, periods, five ad, it

a as Just Got seems demand Peter then on increase amongst the more a thoughts, Does sourcing here. or it it best, the just by M&A value there's overall. side, that lot Epsilon that from changes of within impact of sector Publicis more being clients? creative the creative like perspective and acquired is just and Any whomever their proposition with just kind

to I model were last being than instead two are well, kind certain and Epsilon for a of hand more that being be this versus this anybody based One, SAPIEN they to bench light to, what warfare a enables hearted, hourly has do. do salary of in and technology skills. the but Yeah, become the that's like create ad agencies like Epsilon AT&TL hand types having solution. we work And one, is to WX drawing These to were points. that able past. the able companies of who technology pretty think to pictures technology on It's model the I'm

So I don't billable for think competition it has the staff. increased

customer changed be corporations where to where intentionally the a more the to tried base think competitor we they're a I a more has bit past they on of mix agencies little customer relying in have and change than be would subcontractor. it then were we now our

So I think the response your question. to that's

to you. like Now it Thank a overall is sounds opposed great definitely less, as more demand outcome. which

And go Caso. our from Please comes next ahead. question Edward

and capital Hi. deployment you, around will is My Peter. I'll miss we here. pass my along thoughts question

You Sort focused of M&A what's back stock what M&A? Thanks. and a more and bought haven't Is the of type focus while? here? in then it

a partner a strategic know, have do we but your changed. primary our and home, mine really And our to financial in so the has you plan. Yeah, change building response of question of as Ted been hasn't

for on to competes two, of available acquisitions as Our Apex the to but focus can much is we see difficult, good to can continue for in a long-term whatever's and capital our find, billion business. best them if which W the partner see share out years to more repurchase, whether find revenue rest internally to in three one, and four build help it's or debt they ECS to we if of next get acquisitions repayment for shareholders, remains

generally a of found down? further Can which have bit or movement sort Is there it is little Thanks. been has percentage we yet about perm there bottom still talk trending - is - you downward? your the in

Ed, it's if good our you perm not business will, I thing that a model. a driven think it's about model is

of a So you've down revenues nearly X% from seen little now to it over three. come

not second the Our has quarter. the you the our going it's market a historically, get in bit better it's the this within where perm that and IT majority looking growth perm and and way behaving, But now comes perm market the placement. largest of is are right - is to a the be been little forward always in place

certainly a but part business, perm part. that not business a it's the so it's of - is we our dominant or And

to see kind X% of range you'll within of so this X% of stay And revenues. it

Ed margin wasn't was is was I on on how it based XX.X% is, that based we of our - would our that run day of business. on based bill add and we basis, rate that profit billable expansion. that fact durability a the on what what volume grew same the number One, that growth

always a durable that's much So pricing. more raising just than model your constantly

we to The second - also slower though dependent in by focused on want thing but will the those is not because to want a we as even most as our fluctuate a a we the margin that them, our economically told and demand. We growth business that nearly want perm has highly EBITDA it's teams be big healthy not support contributor economic that to company you is still even just want on much placement, have it's to design. business them chance we've in times it's sensitive, and

you. thank Great,

And Jeff ahead. Please our next question go Silber. comes from

thoughts our I Thanks prayers are well. that say wanted as you with to And just Peter, so and much.

We've is Is there in consultants why curious on to something the just lot this at more In of this see Thanks. I I'm this. asked as going to a last there? seen again, the at ask information, materials I'm quarter, going second we're I I think continuing it a terms as look my when Oxford. staffing think decline supplemental I of question, consecutive this quarter.

the as CyberCoders headcount And our standpoint, steady headcount to say, anything more we're we is up little the You Oxford numbers. there we're wouldn't have number where on and that looking as based adding that at side, say from I than bit down but both I business. those we there's opportunities, Core and report there a we're Oxford our within know, remember we on business how that well would at think that just a encompasses and that strategic CyberCoders Oxford

strategy the to in the any in terms business getting thoughts can that Okay, again, improvements in some of how moving you right Oxford? share direction of to get trying on

we prior I to Oxford, the same increase in maybe you importantly, see big in other can that that I for in the mentioned can not business, a the on we And as we're sales putting about growth bit quarters. an is not as now still It's good that we've are continue if the their quarter, think steady productivity, see the place will, that same we're marketplace, little path strategies but quarter-to-quarter. talked because Yeah, we a more providing growth the that you we mean, in in most units which a of growth serving scripts. rates see rate one spot this they're our their saw and for

Our EBITDA from standpoint is you tells of gross percentage EBITDA to a conversion is improving within unit our that improvement. that and margin profit that

quarter? that's pointing And for Okay, current for you should in good. expense I modeling What we question appreciate a quick you. that numbers out. Ed the interest just be

XX.

Great. XX.

Okay, thanks so much.

line your Please open. Tim, is ahead. go

thanks. Yes,

particular that guess Is and I is of I bill surprised spread for of that for normalize margin in besides in bit Oxford. it if pressure pricing want there mix a it on Just you? business to Or pay simply mix spreads the in? terms terms you came that the client follow little in or clear up on margins Apex guess, just to the gross anything be the

Yeah, thanks, Tim.

Oxford on mix. truly it business the is side So

the come Our on margin Rand gross the are a fastest and at units side. lower growing that Apex slightly

It's top at can it Top been And margin. a up. accounts pure accounts accounts our you look over and definitely mix. growing It's of gross accounts keep it's the the solid time, hardly steady. margin gross have a very top periods are if fast so retail

the totally the mix. mix, So just it's

Okay.

that more - units that is Tim both of you Tim hair. add one to sides thing both a to just And look those together, at look if you if on then affecting obviously perm

basis. strong that the part It couple in And day that for demand client I okay. there right, then the terms on Is same marketplace? or we even quarters. engagement All the last different was quite saw levels in creative normalizing the guess, of as wasn't of anything

Rand?

you're we In correct. three last did as year, not the I in quarters of well think last quite first well. quarter, the

come out first first typically, so again, but of quarter. saw it's lower didn't the We quarter, far in quarter is slowest year. the So We our the that rate.

on in notice But some QX we just we that in were with creative a it's so you marketing I progress world and out marketplace. and little as in a we in and think and a to really underneath chute and said, churn were talking and of of ad into I corporate on X growth unfortunately year, fell marketing lumpy, just I the marketplace going we're accounts, got think world QX. adjusting XX% this that model as didn't you the Peter, number get strong and as the that other we're is come agencies If digital there's the just The right off the demand. wean think into earlier churn of right last bit than QX it's the but Peter is track,

Okay, Thank you. great.

Okay.

our comes go question next ahead. Tobey Sommer. Please from And

you. the business it's luck. my wanted try I have curate a watch competitive you you question of Could Work compete business. may of business. to privilege how few scale? about Thank that around an Peter, growth describe players who over get you to you to edge the ask your the Statement and the Good the mode at

Rand?

a of productivity services responsibility by growth we're because getting saying, Solutions is That that Enterprise are let major our pretty we center, template of propelling there. difference client the to of And we talked sees there's others price right just really I the think out can the Yeah, Tobey about or have and stronger. In more we just out consulting staffing advantage work circles, our workforce stronger get a work. a providing center some and and hybrid with our ultimate area, bodies the workforce than between start We've five CIO management, and and price the the advantage where our Tobey, and workforce the and excellence. for two, and show as take and in good classifications quality it. been experience we we're and me as service on we a two can those between have quality work long in time in methodologies, with having

But to don't a McKinsey's. spot need good think had. an We sweet IT good need the to of it's So I the architects. be to don't work be us. be there's awful lot We for

and they agree yesterday management. not Mr. their point, customer do but have as project architecture or Mrs. we doing willing resource if experts, they of the to reported they in in want I Toby, retain working is If versus or to. nearly case amount subject with exact compromise get and quite have businesses on passionately appropriate. well which or their they don't responsibility we they Robert truly and a Half us, productivity the and would most By certain many to available matter either made add, most Mrs. a Mr. too,

will deliver talk the the So wants about grow. appeal and the when having not mode, to saying resource the project to the that to think exact that any versus appealing is ability continue on customer team customer you a I their works

I advantage. think Yeah. is a Peter, real Thanks. that you call which deployment model, our

driving been the based contract over In business, or mix the ramping you. is there broad a or that? of that's of to ECS Thank shift favor slight that up win last single in change work, a so year kind is

George?

contract. any Yeah, hi, single in George. contractor particular Tobey, it's no not it's No,

Just of in that overall faster some moved - rest we our a some drives of several that have which had shift. they've at pace contracts solutions cost have other we the plus have of that than and delivery the the contracts company been of the growing some

DHA price the in things is They're of out, would T&M. I One but XXX% point the acquisition. fixed

we move the to to mix historical going toward believe T&M fixed and of our do is contract in price. terms back highs that So

for adding thanks Perfect, that.

ECS and out to most I having you type that the to successfully provider. if that government contractor. shift would of that's were Toby, to the large performed, that So government broad point thing work rebuild appeal about was a vision also, us IT George's about He asking was build wanted a from just base million solutions that a to service Stanley X They solutions want a billion. built company the

chasing six passport translation So we're we're some and has that the Department outsourced build. the Justice, very State we on. large or or to contracts made that for solutions for then solutions State of strategic for IP really operating these we execute continue the the decision end renewal Department Department production of years a And language George focused been document that five, really is not ago on higher US

view have the Georgia think, also happen on question, Last budget to for you I trajectory? 'XX do you. fiscal Thank a

of and long 'XX. the with having conversation we're and say it's 'XX you're papers better good and I better going feel we would the opportunities than sure like I pipeline moving but do, so to nothing right time in the very seeing Yeah, we're it's remainder a that our that, now, customers, about been I the that than read into stuff of in and

queue. the I'll Thank you. back get in Okay,

Mark question next our go comes Please Marcon. ahead And from

Peter. Hey,

then George along Ted, and Rand but and and sympathy best within with wondering I systems? the what express at and With my terms little ASGN has that pedestrian Apex came several also the the about everybody up entire rates labor Ed, with basically miss last we years a I'm not of of to along and and over talk that pay appreciates it, the that rates pass what and recently for business First you what to many pass in see the been a terms thing It's - can one recourse it's success. around been my of you're continuing in wishes bit tightness not the to how tremendous. seeing at if just you, and calls the your and fill little to a all in only want seem but also market also of Rand, to team of this legacy point, regards working you question fantastic bit more. fully built admiration best but you've I did family wishes before want been to you even XX sure just

Rand?

sorry. I'm

Go ahead.

Ted, to you me want respond?

please. Yeah

We've seen over our yet we submit pay In anything. it's to of little half. quarter, trend listen, different, a don't a Are year clients? saw last bit quality Yes. bill faster little past that able candidates rates find this Well, we than to to rise the know rates. and but I a

are of year-over-year QX QX, over up if Our it's not for up. know I steady, fill ratios last year.

don't So day is And closely, large steady day we as overnight. bill rate you'll metrics. I'd of too, have we not say very remember It's we're mindful based steady, you change as Ted to these on watching and but have We're said the contract. to it's go. contracts these earlier,

we'll tightness rate And would a then of so adjustments. that labor pay blip there is get will sometimes the the bill by cause rate market

pretty So steady, much Ted balanced. and as in I it's far think we're said, steady so here it's very it's, position

of to say can. picture put can think We certainly to we answer So find margin Mark the part and I would about if you talent work? of that's the just

our business part If revenue there rates consultant work the our are part little real our headcounts, business. up, that's little either certainly our statement of more staff bill at look but work and bit aug our of of putting is bit a the up people to you are a story, through story or revenue

the I still And the them able so think identify and to put customer. our talent to that at work that that we're fact find under underlies and

or of aug assignment poached staff change long are sort the business, of the lines? the if seeing on any they're of those On the assignments getting in how terms or along they're you of in anything terms with contractors behavior staying

I Mark. Yeah, a it's there's any more I marketplace. mean, active don't obviously, there, change believe material

be like we to customers pay on and issue if attentive our And think, have an and what have proactively that. to mean feel we we there's of and that. So side to bill through the kind the to there, does go that more work

to is a much - a our economic that different we customer around that's something but too front. the we've that, in seen consultant burden more So than on with be way don't what active there see think I in us I think and past

XXX%, want I if the through assignments go the I, is tight of will with flux bigger the I agree willing but Ted accounts, fortune what with market. longer to could, to go a don't labor they're Ted I say XXX, because they

a the of duration in slight which is inch in up seeing accounts, good. assignments those strictly we're staffing top So

That's think next ends then the seeing of ML of through or with over absolutely. are changing? that through? quarter during prior type you there that the AI up that's - we year greater some how a great, about terms regards revenue How Georgian on and obviously, pass coming to And should And portion contracts. in discussion about ECS, was the so the

see business Yeah, things, sure, software vendors I solutions hardware complex in requires pretty us because delivering commercial be Ml. AI, other a as we unique we and little associated purchases quarter of the of a such. quarter the have particularly seasonality are see it's we the going part there's some also of work that again that did some these with think is to year in maybe this these constant year. What of we'll this last that and to in purchases is And of seeing of and that quarter final we government our deliver learned other bit we're what licenses, of probably with and last year, and that third some

to get delivering they of as trying we're constant when as some be purchases for you them handle moving our long and all, can we're these forecast better will we and how on forward, of little So a complex a bit we but part now systems. business do these

quarter pass-throughs you. a quarterly that quantify higher on but normal I call for on you basis, the Yeah, about the kind I quarter this revenue. it We XX% that told fourth were of we And and that between somewhere it would run gave than that end on lower think number, XX% typically right the been you of right? Is George? of and have

this it's Yeah, for lower a of end definitely number. that watermark was us. quarter a QX

Yeah.

appreciate wishes. Thank color. Best you. the Peter. I Again,

Thank you, Mark.

question And go comes our next Please Greenberg. ahead. Cliff from

invest is half times view three years. made six the which Yeah. say top great great shareholder to privilege executives your Hi on over mutual the one Baron last a behalf you share Peter the thank a as very fund, team. holders been of and of ever to and you privilege our the Peter the a and with. We've return. We had in be much. money, It's want fund to Capital I've I my -

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Thank Cliff. you,

god. by yeah, Yeah,

Please Weber. go Seth ahead. from comes question next The

any evening, ECS is success commercial wishes Question that Apex echo cross team early in bigger and I Peter. I or of early for just the kind yet the well. good selling as Hi, to platform Best stages. or still either wanted George just customers with guess in with the

So a George respond. both good basis have than growth Apex is its own they let on growth as more in basis. it's was over. billable thing, these market tight is day it's above of I'll a know, ECS Unfortunately Seth, faster industry and growing Peter you this companies a labor say consolidated grace same then And rate. but the and can

over thing try will continue another's how about cross And worst to because do we measured measured services sell promise the can is and to deliver. you be and one so we're under

subcontractor these conversations Hilton being those put to are pulpits customers measured but overstretch ECS a themselves and So more some Apex but conversations of to projects for the market acquisition on company a staff don't some trying you used to its done had. its We're the to of prior where but needs, maybe we cyber security to as so tell under around I in thoughtfully coordinate, real opportunity, and ourselves, that and this, would commercial over the tight lookalike revenue outside brands, companies, that some Vacations, it's Grand promise Apex's don't the addressing trying the has market ECF extent is default little we're because we intelligence people to that And built reality federal able to the of bit of deliver space Apex. second a being appropriately. with labor Hotel, be then Yum a

views. of a kind Peter. a lately, comments on of little just there any for had There's I a with market exposure business. particular the know messaging But around not you quick, Europe Oxford bit end just it's any quick sense. know some been makes That you. follow if Thanks Europe? mixed have I exposure wondering Maybe you up, big

we we marketplace going things of there about correctly services is are Yeah, all mix business. need not Probably provides have that, Oxford but watchful our outperformed. and that are continues on but little our know certainly have Oxford over actually, IT which business fine. continue we steady. just news the of a in US a biggest Oxford. that there there's than we and business, to bit that outperformed certain Yeah, Europe, a it grown Seth, I our when to I state business talk is faster doing - they inside you customers see they're

a what you're that's the of margin. so little And seeing bit within

Good to guys. hear. Thank you much, very

this time. are there Please proceed. questions at no further And

the Well, best All work to to each results quarter all our time everyone for you with thank thank And reporting forward second right. for your and every able we of and attention. Ted the shortly, being looks one so you and you. privilege again of

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

disconnect. now may You