Deutsche Bank Virtual 2020 Technology Conference...2020/09/15 · Contract Backlog11 ($ in millions) 12 13 $239.7 $190.6 Q2 19 Q2 20 Revenue ($ in millions) +25.8% $43.8 $34.9 18.3%10

©2020 ASGN Incorporated. All rights reserved.

September 15, 2020

Deutsche Bank

Virtual 2020 Technology Conference

© 2020 ASGN Incorporated. All rights reserved.

Safe Harbor

2

Certain statements made in this presentation are “forward-looking statements” within the

meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a

high degree of risk and uncertainty. Forward-looking statements include statements regarding

our anticipated financial and operating performance.

All statements in this presentation, other than those setting forth strictly historical information,

are forward-looking statements. Forward-looking statements are not guarantees of future

performance and actual results might differ materially. In particular, we make no assurances

that the proposed revenue scenarios outlined in this presentation will be achieved. Additional

examples of forward-looking statements in this presentation include, without limitation,

statements regarding the expected impact of the COVID-19 global pandemic on our

competitive position and demand for our services; our ability to attract, train and retain qualified

staffing consultants, the availability of qualified contract professionals, management of our

growth, continued performance and improvement of our enterprise-wide information systems,

our ability to manage our litigation matters, the successful integration of our acquired

subsidiaries, and other risks detailed from time to time in our reports filed with the SEC,

including our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with

the SEC on March 2, 2020 and our Quarterly Report on Form 10-Q for the quarter ended June

30, 2020, as filed with the SEC on August 10, 2020. We specifically disclaim any intention or

duty to update any forward-looking statements contained in this presentation.


ASGN At a Glance (NYSE: ASGN)

3

• U.S. addressable market of $290 billion3

• Additional opportunities in Europe

• Early mover in the “shared economy”

• Favorable tailwinds: digital transformation;

migration of government agencies to the

cloud; reshoring/near-shoring of consulting

work

• $4.0 billion in LTM revenue1

• $447.4 million in LTM Adj. EBITDA1,2

• $383.5 million in LTM free cash flow1

• 13,200 customer relationships

• Relationships with ~300 of Fortune 500

• ~23,000 billable professionals

Support leading corporate enterprises and

government organizations in developing,

implementing and operating critical IT and

business solutions through an integrated

offering of professional staffing & IT solutions

Our Company Our CustomersOur Markets

Deep, Trusted Relationships Track Record of Excellence Growing Addressable Market

One of the foremost providers of IT and

professional services in the technology,

digital, creative, engineering and life

sciences fields across commercial and

government sectors

Commercial IT Services and Federal

Government IT Solutions each offer

industry knowledge and depth, scalable

solutions and expansive geographic reach


Investment Highlights

4

• Increasingly IT-Centric – Business model has evolved in line with client needs and expectations to

focus on higher-end, higher-margin IT consulting services and solutions capabilities. Commercial

consulting pipeline increasing double digits year-over-year in the second quarter.

• Unique Go-To Market Strategy – Diverse client base comprised of both commercial clients (over

60% of the Fortune 500) and key Federal Defense & Civilian government agencies. Growing focus

on large accounts that are often a more stable sources of revenue and represent clients who are

quicker adopters of new technologies.

• Significant Exposure to Federal Government Marketplace – Over 25% of Q2 revenues

generated from Federal and Civilian government agencies, clients whose industries are typically

better insulated from economic uncertainty than their commercial industry counterparts.

• Strong Balance Sheet & Liquidity – Solid free cash flow generation provides flexibility to direct

funds in best interests of the Company, its clients and its stockholders.

• Flexible Cost Structure – Variable expense structure provides high conversion of free cash flow to

Adjusted EBITDA, providing stability to business model.

• Track Record in M&A – History of successfully integrating tuck-in and transformational acquisitions

that have broadened the Company’s client base and added key IT capabilities and client contracts.

• Experienced Management Team – Led by industry experts who have successfully managed the

business and its clients during both positive and negative market cycles.


ASGN: A Leader in High-End IT Services & Solutions

5

Strategy

Architecture

Design

Systems Deployment

(incl. upgrades)

Service Centers

Technical Staffing

Federal Government IT

Solutions OfferingsMission critical IT services for the

Federal Government

Commercial IT

Service Offerings


Segment Overview

6

APEX SEGMENT OXFORD SEGMENT ECS SEGMENT

SERVICE OFFERINGS

Mission critical high-end IT

solutions for the Federal

Government

High-end IT, Engineering and Life

Sciences skills and solutions

Permanent Placement solutions

Information Technology, Engineering,

Finance & Accounting, Healthcare

Mission critical IT skills and

solutions

Creative/Digital skills and solutions

LTM REVENUES1

$571.8 Million14.5% of Consolidated Revenues

$2.5 Billion63.0% of Consolidated Revenues

$892.0 Million22.5% of Consolidated Revenues

Federal Government

IT SolutionsCommercial


Commercial Business (77.4% of LTM revenues)

7

TMTFinancial

ServicesBusiness &

Govt. ServicesHealthcare

Cloud Solutions

Cybersecurity

Workforce

Management

Application

Development

Science &

Engineering

Massive addressable market

Deep decades-long client relationships with major Fortune 500 companies

Lower cost of services vs. full-deliverable bench consulting model

Consumer

& Industrial

Financial Services : Regional Banks, FinTech, and Insurance Services driving growth; stimulus funding pushed through commercial banks is creating a heightened need for IT modernization.

Consumer & Industrial: Utilities, Consumer Staples & Specialty Retail showing relative, strength while weakness in Energy and Hospitality continues.

Healthcare: Demand for digital transformation (mobile/customer experience) and health records modernization continues to be a longer-term focus, while hospital networks focused on COVID-19 near-term.

TMT: Integration/M&A, COVID-19-related WFH initiatives and re-shoring of IT support capabilities (Mexico Delivery Center gaining traction). Media & entertainment sector weakness expected near-term.

Business & Govt. Services: Increased demand for digital transformation, cloud, data analytics, AI and cybersecurity initiatives. Tailwinds from higher education businesses transitioning to online model.

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Federal Government IT Solutions Business (22.6% of LTM revenues)

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Defense Federal

CivilianOther

Intelligence and

National Security

Cloud Solutions

Cybersecurity

Machine Learning

IT Modernization

Science & Engineering

Massive addressable market

Ample and increasing funding; durable mission requirements

Profitable countercyclicality

Deep decades-long client relationships

Accelerating cyber threats drive funding and demand across government and commercial customers.

Drive to the cloud impacts all technology and business transformation efforts, with cloud-hosted, on premise, and hybrid solutions depending on customer and mission needs.

AI and machine learning sun is rising as DoD, national security, federal civilian, and commercial customers demand actionable and scalable data approaches and decision intelligence at scale and at the edge of technology.

Pent-up need for IT system modernization and digital transformation to achieve mission outcomes, productivity gains, and cost savings across economic cycles.

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Summary of Consolidated Financial Data — Q2 2020

$178.8 Million +102.7% Y-Y

$61.7 Million +4.7% Y-Y

$48.8 Million +13.3% Y-Y

26.2% -30 bps Y-Y

$106.2 Million -7.1% Y-Y

$250.0 Million

1.10 to 1.0

$186.1 Million +92.8% Y-Y

$260.8 Million -8.6% Y-Y

27.8% -150 bps Y-Y

$936.8 Million -3.6% Y-Y

72.2% 76.6%

25.6% 19.6%

2.2% 3.8%

Q2 20 Q2 19

Perm Placement

Federal Government IT Solutions

Contract (Assignment & Consulting)

OPERATING DATA

BALANCE SHEET DATA

REVENUE MIX8

ADJUSTED NET INCOME5

FREE CASH FLOW

NET INCOME

REVENUES

CONTRACT GROSS MARGIN4

ADJUSTED EBITDA2

GROSS PROFIT

GROSS MARGIN

AVAILABILITY UNDER REVOLVING CREDIT FACILITY7

SENIOR SECURED LEVERAGE RATIO6

($ in millions) June 30, 2020 December 31, 2019

Cash and Cash Equivalents $ 207.9 $ 95.2

Working Capital 497.3 450.6

Senior Secured Debt 482.9 482.3

Senior Unsecured Notes 550.0 550.0

Total Long-Term Debt 1,032.9 1,032.3

Total Stockholders' Equity 1,457.1 1,376.2

CASH FLOW AND OTHER DATA

74.4%80.4%

25.6%19.6%

Q2 20 Q2 19

Federal Government IT Solutions(ECS Segment)

Commercial(Apex & Oxford - Combined)

CASH FLOWS FROM OPERATING ACTIVITIES

9


Summary Commercial Operating Data (Apex & Oxford - Combined)

29.0% +40 bps Y-Y

31.1% -90 bps Y-Y

$96.4 Million +2.8% Y-Y

3.0% -1.8% Y-Y

RECENT TRENDS

($ in millions) Q2 20% of

Total

Y-Y

Change

Financial Services $ 163.1 23.4% 9.1%

Consumer & Industrials 150.4 21.6% -22.7%

Healthcare 149.7 21.5% -11.8%

TMT (Technology, Media & Telco) 120.1 17.2% -13.1%

Business & Government Services 113.8 16.3% -12.2%

Total $ 697.1 100.0% -10.8%


TotalQ2 19

% of

Total

Y-Y

Change

Apex $ 576.9 82.8% $ 628.5 80.4% -8.2%

Oxford 120.2 17.2% 153.2 19.6% -21.5%

Total $ 697.1 100.0% $ 781.7 100.0% -10.8%


TotalQ2 19

% of

Total

Y-Y

Change

Assignment $ 580.0 83.2% $ 650.6 83.2% -10.8%

Consulting 96.4 13.8% 93.8 12.0% 2.8%

Perm

Placement 20.7 3.0% 37.3 4.8% -44.8%

Total $ 697.1 100.0% $ 781.7 100.0% -10.8%

REVENUES BY SEGMENT REVENUES BY TYPE

REVENUES BY INDUSTRY VERTICAL9

10

73.1% +248 bps Y-Y

IT SERVICES AND SOLUTIONS MIX

GROSS MARGIN

CONTRACT GROSS MARGIN4

PERM MIX

CONSULTING REVENUES


Summary Federal Government IT Solutions Operating Data (ECS Segment)

$356.6 $490.6 $435.3

$1,589.4 $2,186.7 $2,178.0

$1,946.0

$2,677.3 $2,613.3

6/30/19 3/31/20 6/30/20

Funded Backlog Unfunded Backlog

2.7

3.6

3.2 3.0 2.9

1.5

2.42.1 2.0

1.7

6/30/19 9/30/19 12/31/19 3/31/20 6/30/20

Backlog Coverage Ratio TTM Book-to-Bill

Trailing 12 Months RatiosContract Backlog11

($ in millions)

12 13

$239.7

$190.6

Q2 20Q2 19

Revenue($ in millions)

+25.8%

$43.8

$34.9

18.3%1018.3%10

Q2 20Q2 19

Gross Profit($ in millions)

REVENUES BY CONTRACT TYPE

REVENUES BY CUSTOMER

14 15

Q2 20 Q2 19

Firm-Fixed-Price 26.5% 24.2%

Time and Materials 34.0% 37.1%

Cost Reimbursable 39.5% 38.7%

Q2 20 Q2 19

Defense and Intel 53.0% 56.5%

Federal Civilian 40.1% 37.4%

Other 6.9% 6.1%

11


Q3 2020 Financial Estimates

12

Quarter Ended

June 30,

(In millions, except per share amounts) 2020 Low Mid-Point High

Revenues 936.8$ 913.0$ 925.5$ 938.0$

Sequential Growth Rate -5.4% -2.5% -1.2% 0.1%

Gross Margin 27.8% 27.5% 27.7% 27.8%

SG&A Expenses 172.2 171.0 172.3 173.5

Amortization of Intangible Assets 12.6 12.6 12.6 12.6

Net Income:

GAAP 48.8$ 42.4$ 45.2$ 47.9$

Adjusted5 61.7$ 55.0$ 57.8$ 60.5$

EPS (Diluted):

GAAP 0.92$ 0.80$ 0.85$ 0.90$

Adjusted 1.17$ 1.04$ 1.09$ 1.14$

Effective Tax Rate 26.3% 27.0% 27.0% 27.0%

Adjusted EBITDA2 106.2$ 96.7$ 100.5$ 104.2$

Adjusted EBITDA Margin 11.3% 10.6% 10.9% 11.1%

Free Cash Flow as a Percent of Adjusted EBITDA 168.4%

Diluted Shares 53.0 53.0 53.0 53.0

90.0% ~ 100.0%

Financial Estimates for the Quarter Ending

September 30, 2020


COVID-19 Update

First Half 2020

Impact

• Commercial (76.5% of 1H 20 revenues): Minimal effect in Q1. Week-to-week

declines in revenues through mid-Q2, flattening thereafter. Down 10.8 percent in

Q2 Y-Y, mainly related to declines in creative marketing and permanent

placement revenues and, to a lesser degree, lower IT services and solutions

revenues.

• Federal Government IT Solutions (23.5% of 1H 20 revenues): Minimal effect in

1H 20. Revenues were up double digits for the period.

Q3 2020 Outlook

• Visibility has improved. Commercial revenues stabilized going into Q3-20, while

the government business remains resilient.

• Midpoint of Q3-20 outlook assumes continuation of current production trends for

commercial divisions and that ECS achieves double-digit year-over-year growth.

• Third quarter revenues will be flat-to-down sequentially.

ASGN is Strongly

Positioned for the

Future

• Increasingly IT-centric with expanded high-end consulting solutions capabilities

and growing pipeline of consulting opportunities.

• Expanded large account portfolio and exposure to Federal government

• Highly experienced & capable management team.

• Smart capital deployment – solid liquidity and free cash flow generation.

13

Appendix


Selected Financial Data

15

(in millions, except per share amounts) 2018 2019 2020

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2

Revenues – by Business

Commercial (Apex & Oxford Segments - Combined)

Contract Revenues--

Assignment $ 582.7 $ 611.5 $ 628.7 $ 639.0 $ 2,461.9 $ 637.4 $ 650.6 $ 660.0 $ 652.9 $ 2,600.9 $ 641.2 $ 580.0

Consulting 67.6 72.5 76.9 81.6 298.6 84.2 93.8 100.1 107.3 385.4 102.8 96.4

Total - Contract 650.3 684.0 705.6 720.6 2,760.5 721.6 744.4 760.1 760.2 2,986.3 744.0 676.4

Permanent Placement 34.9 39.4 36.8 35.2 146.3 34.1 37.3 36.5 31.5 139.4 33.8 20.7

Total - Commercial 685.2 723.4 742.4 755.8 2,906.8 755.7 781.7 796.6 791.7 3,125.7 777.8 697.1

Federal Government IT Solutions (ECS Segment) - 155.1 164.0 173.9 493.0 168.0 190.6 206.1 233.5 798.2 212.7 239.7

Consolidated $ 685.2 $ 878.5 $ 906.4 $ 929.7 $ 3,399.8 $ 923.7 $ 972.3 $ 1,002.7 $ 1,025.2 $ 3,923.9 $ 990.5 $ 936.8

Revenues - by Segment

Apex $ 538.5 $ 567.6 $ 589.6 $ 604.6 $ 2,300.3 $ 606.1 $ 628.5 $ 644.1 $ 641.3 $ 2,520.0 $ 629.1 $ 576.9

Oxford 146.7 155.8 152.8 151.2 606.5 149.6 153.2 152.5 150.4 605.7 148.7 120.2

ECS - 155.1 164.0 173.9 493.0 168.0 190.6 206.1 233.5 798.2 212.7 239.7

Consolidated $ 685.2 $ 878.5 $ 906.4 $ 929.7 $ 3,399.8 $ 923.7 $ 972.3 $ 1,002.7 $ 1,025.2 $ 3,923.9 $ 990.5 $ 936.8

Gross Margin - by Segment

Apex 29.5% 29.9% 30.2% 30.1% 29.9% 28.9% 29.9% 29.8% 29.7% 29.6% 29.3% 29.6%

Oxford 40.3% 42.0% 41.1% 40.7% 41.0% 39.4% 40.8% 40.6% 39.6% 40.1% 39.9% 38.6%

ECS - 18.5% 18.1% 16.5% 17.6% 17.6% 18.3% 18.1% 16.8% 17.7% 17.4% 18.3%

Consolidated 31.8% 30.0% 29.8% 29.2% 30.1% 28.6% 29.3% 29.1% 28.2% 28.8% 28.4% 27.8%

Contract Gross Margin - by Segment

Apex 27.6% 28.1% 28.4% 28.4% 28.2% 27.3% 28.1% 28.3% 28.3% 28.0% 27.8% 28.6%

Oxford 30.2% 30.7% 31.0% 31.0% 30.7% 29.9% 30.9% 30.5% 31.0% 30.6% 30.2% 31.2%

ECS - 18.5% 18.1% 16.5% 17.6% 17.6% 18.3% 18.1% 16.8% 17.7% 17.4% 18.3%

Consolidated 28.1% 26.7% 26.8% 26.5% 27.0% 25.8% 26.5% 26.4% 25.9% 26.2% 25.8% 26.2%

Net income $ 29.1 $ 33.6 $ 49.1 $ 45.9 $ 157.7 $ 34.9 $ 43.1 $ 57.4 $ 39.3 $ 174.7 $ 43.8 $ 48.8

Earnings per share - Diluted $ 0.55 $ 0.63 $ 0.93 $ 0.86 $ 2.98 $ 0.66 $ 0.81 $ 1.08 $ 0.74 $ 3.28 $ 0.82 $ 0.92

Adjusted net income $ 44.0 $ 58.8 $ 68.7 $ 60.8 $ 232.3 $ 49.4 $ 58.9 $ 69.7 $ 68.3 $ 246.3 $ 57.7 $ 61.7

Adjusted earnings per share - Diluted $ 0.83 $ 1.11 $ 1.30 $ 1.14 $ 4.38 $ 0.93 $ 1.10 $ 1.31 $ 1.28 $ 4.61 $ 1.08 $ 1.17

Cash generated from operating activiities $ 54.7 $ 76.7 $ 92.1 $ 63.9 $ 287.5 $ 44.0 $ 96.5 $ 91.3 $ 81.4 $ 313.2 $ 64.1 $ 186.1

Free cash flow $ 48.5 $ 68.4 $ 84.6 $ 57.3 $ 258.8 $ 36.5 $ 88.1 $ 84.4 $ 71.5 $ 280.5 $ 48.8 $ 178.8

Adjusted EBITDA $ 74.8 $ 106.6 $ 112.8 $ 109.1 $ 403.3 $ 97.1 $ 114.2 $ 121.5 $ 116.2 $ 449.0 $ 103.5 $ 106.2

Adjusted EBITDA Margin 10.9% 12.1% 12.4% 11.7% 11.9% 10.5% 11.7% 12.1% 11.3% 11.4% 10.4% 11.3%

Note: Revenues for ECS are included from the date of acquisition, April 2, 2018.


Reconciliation of GAAP to Non-GAAP Measures

16

(in millions) 2018 2019 2020

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2

Reconciliation of Net Income to Adjusted EBITDA

Net Income $ 29.1 $ 33.6 $ 49.1 $ 45.9 $ 157.7 $ 34.9 $ 43.1 $ 57.4 $ 39.3 $ 174.7 $ 43.8 $ 48.8

Loss from discontinued operations, net of tax 0.1 0.1 - 0.1 0.3 - - 0.1 - 0.1 - -

Interest expense 6.6 20.5 14.6 14.3 56.0 14.5 14.0 12.7 11.7 52.9 11.4 9.7

Write-off of loan cost - - - - - - - - 18.9 18.9 - -

Provision for income taxes 9.9 11.5 10.5 14.3 46.2 13.3 16.2 20.7 11.8 62.0 15.7 17.5

Depreciation 6.8 10.1 9.7 9.9 36.5 9.7 10.0 10.3 10.1 40.1 9.3 9.0

Amortization of intangible assets 7.6 18.5 18.6 13.8 58.5 13.8 13.1 11.9 12.3 51.1 12.1 12.6

EBITDA (non-GAAP measure) 60.1 94.3 102.5 98.3 355.2 86.2 96.4 113.1 104.1 399.8 92.3 97.6

Stock-based compensation 4.9 8.9 8.6 9.1 31.5 9.5 13.9 7.7 8.2 39.3 8.7 8.1

Write-off of intangible assets - - - - - - 3.3 - - 3.3 - -

Acquisition, integration and strategic planning expenses 9.8 3.4 1.7 1.7 16.6 1.4 0.6 0.7 3.9 6.6 2.5 0.5

Adjusted EBITDA (non-GAAP measure) $ 74.8 $ 106.6 $ 112.8 $ 109.1 $ 403.3 $ 97.1 $ 114.2 $ 121.5 $ 116.2 $ 449.0 $ 103.5 $ 106.2

Reconciliation of Net Income to Adjusted Net Income

Net income $ 29.1 $ 33.6 $ 49.1 $ 45.9 $ 157.7 $ 34.9 $ 43.1 $ 57.4 $ 39.3 $ 174.7 $ 43.8 $ 48.8

Loss from discontinued operations, net of tax 0.1 0.1 - 0.1 0.3 - - 0.1 - 0.1 - -

Write-off of loan costs - - - - - - - - 18.9 18.9 - -

Credit facility amendment expenses 0.3 5.9 - - 6.2 - - - - - - -

Write-off of intangible assets - - - - - - 3.3 - - 3.3 - -

Acquisition, integration and strategic planning expenses 9.8 3.4 1.7 1.7 16.6 1.4 0.6 0.7 3.9 6.6 2.5 0.5

Tax effect on adjustments (2.6) (2.5) (0.4) (0.5) (6.0) (0.4) (1.0) (0.1) (6.0) (7.5) (0.7) (0.1)

Non-GAAP net income 36.7 40.5 50.4 47.2 174.8 35.9 46.0 58.1 56.1 196.1 45.6 49.2

Amortization of intangible assets 7.6 18.5 18.6 13.8 58.5 13.8 13.1 11.9 12.3 51.1 12.1 12.6

Income taxes on amortization for financial reporting

purposes not deductible for income tax purposes (0.3) (0.2) (0.3) (0.2) (1.0) (0.3) (0.2) (0.3) (0.1) (0.9) - (0.1)

Adjusted net income (non-GAAP measure) $ 44.0 $ 58.8 $ 68.7 $ 60.8 $ 232.3 $ 49.4 $ 58.9 $ 69.7 $ 68.3 $ 246.3 $ 57.7 $ 61.7

Cash tax savings on indefinite-lived intangible assets

(benefit not included in adjusted net income) $ 4.5 $ 6.8 $ 6.8 $ 6.8 $ 25.1 $ 7.0 $ 7.0 $ 7.0 $ 7.1 $ 28.1 $ 7.3 $ 7.4

Calculation of Free Cash Flow

Cash provided by operating activities $ 54.7 $ 76.7 $ 92.1 $ 63.9 $ 287.5 $ 44.0 $ 96.5 $ 91.3 $ 81.4 $ 313.2 $ 64.1 $ 186.1

Capital expenditures (6.2) (8.4) (7.5) (6.6) (28.7) (7.5) (8.4) (6.9) (9.9) (32.7) (15.3) (7.3)

Free cash flow (non-GAAP measure) $ 48.5 $ 68.4 $ 84.6 $ 57.3 $ 258.8 $ 36.5 $ 88.1 $ 84.4 $ 71.5 $ 280.5 $ 48.8 $ 178.8


Footnotes1 Last twelve months as of 6/30/20. Free cash flow is defined as net cash provided by (used in) operating activities, less capital expenditures.

2 Adjusted EBITDA, a non-GAAP financial measure, is defined as EBITDA (earnings before interest, income taxes, depreciation and amortization) plus stock-based

compensation expense and, as applicable, acquisition, integration and strategic planning expenses, write-off of loan costs, write-off of intangible assets and impairment

charges.

3 U.S. Staffing market size from Staffing Industry Analysts’ “US Staffing Industry Forecast, April 7, 2020” and independent 3rd party (Parthenon) analysis of freelance market.

Commercial IT Services from Gartner; Technavio; Comptia; SIA Parthenon-EY CIO Survey (Light Deliverable Services). Government IT Solutions from Wolf Den Associates

LLC and ASGN internal estimates.

4 Excludes permanent placement revenues and related gross profit.

5 Does not include the “Cash Tax Savings on Indefinite-lived Intangible Assets.” These savings total $7.4 million each quarter, or $0.14 per diluted share, and represent the

economic value of the tax deduction that ASGN receives from the amortization of goodwill and trademarks.

6 The ratio of the aggregated principal amount of consolidated indebtedness secured by a Lien on asset of ASGN or any of its subsidiaries to Lender defined trailing 12-

months of EBITDA (Maximum leverage allowable is 4.25 to 1.0 of borrowings outstanding under revolver).

7 The revolving credit facility available balance is $246.1 million after adjusting for outstanding letters of credit.

8 Assignment/Consulting and Perm Placement revenues includes both Apex and Oxford Segments.

9 Verticals broadly defined as:

Financial Services: banks, thrifts & mortgage services, consumer finance, capital markets, financial technology, insurance, and investment firms

Consumer & Industrials: industrials excluding aerospace and professional services, consumer staples, consumer discretionary, energy, materials, utility & real estate

Healthcare: equipment & service providers and payers, health insurance administrators operating as diversified healthcare companies, biotechnology, pharmaceuticals

and life science tools & services

TMT (Technology, Media & Telco): software applications & systems, services excluding consulting & data processing/outsourced services, hardware manufacturing &

services, equipment & electronic manufacturing services, diversified Telco including wired/wireless Telco services; media, entertainment and interactive media/services

Business & Government Services: contractors, federal government agencies and state and local government, professional services, human resource & employment,

data processing & outsourced services, IT consulting, and other services

10 Gross margin.

11 Contract backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed. Contract backlog

excludes awards which have been protested by competitors until the protest is resolved in our favor. Contract backlog is segregated into two categories, funded contract

backlog and negotiated unfunded contract backlog.

12 Funded contract backlog for contracts with U.S. government agencies primarily represents contracts for which funding has been formally awarded less revenues previously

recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally awarded or authorized by the U.S. government even

though the contract may call for performance over a number of years. Funded contract backlog for contracts with non-government agencies represents the estimated value of

contracts, which may cover multiple future years, less revenues previously recognized on these contracts.

13 Negotiated unfunded contract backlog represents the estimated future revenues to be earned from negotiated contract awards for which funding has not been awarded or

authorized, and unexercised priced contract options. Negotiated unfunded contract backlog does not include any estimate of future potential task orders expected to be

awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement contract vehicles.

14 Backlog coverage ratio is calculated by dividing trailing twelve months revenue by total contract backlog.

15 Book-to-bill ratio is calculated as the sum of the change in total contract backlog during the period plus revenues for the period, divided by revenues for the period. 17

© ASGN Incorporated. All rights reserved.

Documents

Deutsche Bank Virtual 2020 Technology Conference...2020/09/15 · Contract Backlog11 ($ in millions) 12 13 $239.7 $190.6 Q2 19 Q2 20 Revenue ($ in millions) +25.8% $43.8 $34.9 18.3%10