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Thursday, Mar 28, 2024

On Assignments Reports 33% Revenue Growth

On Assignment, a professional staffing firm specializing in scientific and medical positions, reported net earnings of $1.8 million or $0.07 per diluted share on revenues of $66 million for the third quarter. Revenue increased by 33.1 percent compared with $49.6 million last year and income increased by 105.6 percent from a 32.2 million loss in 2004. Net income was positive for only the second time in two years. The Calabasas-based company reported a 20 percent increase in its lab support segment, 33.5 percent in medical financial and allied revenues and a 46.9 percent increase in nurse travel revenues. “We continue to see strong demand in both our health care and scientific end markets, which should support continued revenue growth,” said On Assignment President Peter Dameris in a news release. “Our average hourly bill rates and bill/pay spreads in all lines of business were up versus the same quarter last year. Our focus for the remainder of 2005 and in 2006 is to improve our return on revenues at all operating performance levels including gross margin, operating margin, EBITDA and net income. Accordingly, we will continue to work to increase staffing consultant and support staff productivity and reduce our indirect expenses. On Assignment raised its previous guidance of revenues to $234.7 million to $235.7 million from $220 to $223 million, which would be a growth of over 21 percent over 2004.

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