ASGN Inc. (NYSE: ASGN) reported Q4 EPS of $1.28, $0.05 better than the analyst estimate of $1.23. Revenue for the quarter came in at $1.03 billion versus the consensus estimate of $1 billion.

“We are very pleased with our financial results for 2019, with revenues for the fourth quarter and full year improving double digits year-over-year, and all numbers reported for the fourth quarter meeting or exceeding our guidance,” said ASGN President and Chief Executive Officer, Ted Hanson. “Driving this strong performance was ASGN’s continued ability to quickly and effectively meet our customers’ evolving needs by providing cutting-edge solutions for some of the most crucial and complex IT challenges today. Our growth over the past year was also driven by the successful completion of several strategic, tuck-in acquisitions, namely DHA and Intersys, which fit with our longer-term strategy of providing higher-end, higher-margin consulting services to our commercial and government clients.

“During 2019, we continued to adhere to our balanced capital allocation approach between investing in our organic growth, repurchasing our common shares and making strategic acquisitions. Key to our ability to follow this disciplined strategy was our strong cash flow generation. In 2019, cash flows from operating activities totaled $313.2 million, of which $83.2 million was used to pay down our debt, $32.7 million was used for capital expenditures, $20.0 million was used to repurchase our common stock and $116.4 million was used to acquire two businesses. We also added $53.4 million in cash to our balance sheet.”

“During the quarter," Mr. Hanson continued, "we improved our capital structure with the issuance of $550.0 million of 4.625 percent senior notes that lengthened our debt tenor by approximately 2.3 years. We also restructured our senior credit facilities, in which we reduced the interest rate on our term loan B facility by 25 basis points and increased the borrowing capacity under our revolving credit facility to $250.0 million. These actions, along with our strong financial performance in the fourth quarter, provide us strong momentum as we enter 2020. We are very well positioned to execute upon our strategy and provide significant value to our customers, to our employees and to our shareholders this year and in the years to come.”

GUIDANCE:

ASGN Inc. sees Q1 2020 EPS of $1.02-$1.09, versus the consensus of $1.03. ASGN Inc. sees Q1 2020 revenue of $0.999-1 billion, versus the consensus of $0.998 billion.

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