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Asgn’s Quarterly Report Features ‘CEO Transition Expenses’

Asgn Inc. fell a penny shy of analyst expectations for earnings and met them on revenue during the second quarter, a period which included the transition to a new chief executive. The Calabasas staffing company on Wednesday reported adjusted net income of $63.1 million ($1.18 per share) on revenue of $972 million. Analysts on average predicted net income of $1.19 a share on revenue of $972 million, according to Thomson Financial Network. The adjustments totaled $8.6 million, including a $5.3 million charge for “estimated CEO transition expenses, which included $3.5 million in stock-based compensation.” As covered previously in the Business Journal, former Asgn chief executive Peter Dameris resigned in April, citing personal reasons. But the company stated in a later filing with the Securities and Exchange Commission that his “resignation was the subject of negotiations between his counsel and the United States Attorney’s Office in Boston, Massachusetts, which has been investigating Mr. Dameris as a target in connection with the college admissions investigation.” Ted Hanson is the company’s new chief executive. “I’m honored to lead Asgn,” Hanson said in a statement on second-quarter results. “Over the past three months, we generated revenue growth well ahead of market rates, produced industry-leading profitability and achieved strong free cash flow. We also continued to succeed in our go-to-market strategy, providing higher-value services to our clients via a differentiated delivery model that makes Asgn a more agile, effective competitor in the IT services industry.” Shares of Asgn closed Wednesday up $2.45, or nearly 4 percent, to $64.30 on the New York Stock Exchange.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
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