ASGN INCORPORATED Investor Presentation
MAY 2024
Safe Harbor
Certain information in this presentation is "forward-looking" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involves a high degree of risk and uncertainty. Forward-looking information includes estimates of the company's future financial and operating performance.
Certain data and statements in this presentation, other than those setting forth strictly historical information, are forward-looking and are not guarantees of future performance. Actual results from these estimates might differ materially. Forward-looking information includes estimates of future financial and operating performance. Our future performance is subject to various risks and uncertainties, which are set forth in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 23, 2024. We specifically disclaim any intention or duty to update any forward-looking information contained in this presentation.
Notes to the financial and operating information (page 26) are an integral part of the information presented herein.
2
ASGN
At a Glance
REVENUES | $4.4 BILLION | Free Cash | $410.7 MILLION |
(TTM) | Flow (TTM) |
Adjusted | Total | |||
$502.0 MILLION | Addressable ~$580 BILLION | |||
Leading provider of IT services and solutions | EBITDA (TTM) | |||
Market | ||||
across the commercial & government sectors |
FIRST QUARTER | 2023 | 50% | 2024 | 57% |
REVENUE BY TYPE |
Consulting | Consulting | |||
Commercial | Revenue Mix | Revenue Mix | ||
Federal | Federal | Commercial | ||
Consulting | Consulting | Consulting | ||
Consulting | ||||
26% | 24% | 30% | 27% | |
$1.1 | $1.0 | |||
BILLION | BILLION | |||
Assignment | Assignment | |||
50% | 43% |
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Evolution Driving Narrower
Focus, Propelling Growth
& Increasing Margin
Further
Company
Founded
Went public in September 1992 as a healthcare and scientific staffing company.
Expanded
Commercial
IT Services
Acquired Apex Systems in 2012, expanding commercial IT and consulting.
Expanded
Government
IT Solutions
Acquired ECS Federal in 2018, adding countercyclical governmental industry.
Expanded
Consulting
Solutions
Divested Oxford in 2021; acquired several leading IT consulting companies.
FY '92 REVENUES: $32.7M | FY '23 REVENUES: $4.5B |
1985 - 2006 | 2006 - 2015 | 2015 - 2019 | 2020 - Today | 4 | |||
Investment
Highlights Position ASGN for Growth
Go-To-Market
Strategy
IT Centric
Business
Large Addressable Market
Diverse Account Portfolio
Flexible Cost
Structure
Balanced Capital Allocation
Successful M&A Track Record
Experienced
Team
- | Industry diverse, US-focused client base | |
- | Direct access to deep, talented labor pool | |
v | ||
- | Ability to leverage nearshore and offshore resources | |
- | Majority of revenues in IT consulting | |
- | Tailwinds : AI/ML, digital transformation, Agile, | |
v | ||
Cloud, Cyber | ||
- | $121B in government IT consulting | |
- | $400Bvin commercial IT consulting | |
- | Customers across six industries | |
- | v | |
Provides countercyclical revenue balance | ||
- | Resiliency across economic cycles | |
v | ||
- | Incentive compensation structure supports downturns | |
and is commensurate with revenue growth in up cycles | ||
- | Flexibility to direct funds | |
v | ||
- | Strong Free Cash Flow generation | |
- | Low leverage | |
- | Acquiror of choice | |
- | v | |
History of successful transactions | ||
- | Seasoned, industry experts | |
- | v | 5 |
Longstanding client relationships |
Diverse End Markets
Federal Segment
30%
OF REVENUES
Commercial Segment | |
70% | |
OF REVENUES | |
Financial Svs. | |
15% | TMT |
13% | |
Consumer & | |
Industrial | |
18% | Healthcare |
12% | |
Federal | Business Svs. |
Government | 12% |
30% | |
Q1 2024
Why We Win in IT Services
Industry Knowledge, Depth & Access - 6 verticals
Decades-long, Trusted
Client & Agency
Relationships
Scalable, Flexible IT
Solutions
Expansive Geographic Reach
- Onshore, Nearshore and Offshore capabilities
Superior recruiting process delivers just-in-time subject matter expertise
$1.05B in Revenue | 6 |
Six Verticals Driving Growth
ASGN delivers in-demand solutions across the areas of Cloud, Cybersecurity, Artificial Intelligence & Analytics, IT Modernization, Science & Engineering.
Financial | Consumer | Healthcare | TMT |
Services | & Industrial | ||
- Banking | - Energy & Utilities | - Pharmaceutical | - Big Tech |
- Wealth | - Transportation | - Biotech | - Mid-Market Tech |
Management | - Manufacturing | - Payors | - Wireless |
- FinTech | - Retail | - Providers | - Media & |
- Insurance | - Food & Beverage | Entertainment |
Business Federal
Services Government
- | Big Tech | - | Defense & Intel |
- Mid-Market Tech | - | Federal Civilian | |
- | Wireless | - | Other |
- Media & Entertainment
7
Moving up the IT Services Pyramid Provides Higher Margin, Higher Value
Strategy | Understanding and Evaluating Long-term | ||
Enterprise IT Goals of a Company | |||
Architecture | Developing Strategic IT Roadmaps | ||
Design | Creating Enterprise Technology Blueprints | ||
Systems | Implementing Key Enterprise Solutions | ||
Deployment | |||
Service
Centers
Technical
Staffing
Deploying Leading Talent to Support Enterprise IT Infrastructure
Our Foundation and Heritage
Commercial
Federal
Government8
3
1 Right Markets
CommercialGovernment
How we go | 2 | Right IT | Fortune 500 & Large Mid-Market | Defense & | Federal | Homeland |
to Market | Solutions | 1000 Companies | Intelligence | Civilian | & Justice | |
Cybersecurity
Cloud & Data
Management
AI & ML
Digital
Transformation
Right Technology
Partners
9
Variable Cost Structure Provides Flexibility & Support
Gross Margin
SG&A
- Contingent workforce that flexes with revenue
- Favorable business mix drives gross margin
- Flexible incentive compensation model
- Best-in-classcommission structure incentivizes performance
- Shared services model leverages infrastructure costs
EBITDA Margin
- Margin expansion as business mix evolves into more IT consulting
Free Cash Flow
- Allows for a balanced capital allocation strategy
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Disclaimer
ASGN Inc. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 20:12:45 UTC.
