Wells Fargo Research and Economics Tech, Media & Telecom Conference
November 7, 2012Jim Brill
SVP & CAORand Blazer
President, Apex SystemsTed Hanson
CFO, Apex Systems
2
Safe Harbor
Certain statements made in this presentation should be consideredforward-looking statements as defined in the Private Securities LitigationReform Act of 1995. These include statements about our future results ofoperations and operating targets, our ability to integrate Apex Systems intoour operations successfully, the size of the markets in which we operate,and our efforts to increase our market share. We caution investors thatthese forward-looking statements are not guarantees of futureperformance, and actual results may differ materially. Investors shouldconsider the important risks and uncertainties that may cause actualresults to differ, including those discussed in our annual report on Form10-K for the year ended December 31, 2011, Form 10-Q for the quarterended June 30, 2012, Proxy Statement filed on April 13, 2012 and otherfilings we make with the Securities and Exchange Commission. Weassume no obligation to update this presentation, which speaks as oftoday's date.
3
Key Investment Highlights
• Large and Growing Provider of Professional Staffing Services
• Strategically Positioned to Capture Favorable Trends in Professional Staffing
• Differentiated Platform Featuring High-end and Mission Critical Skill Sets
• Established Domestic Footprint With Significant Scale
• Experienced Management Team With a Proven Track Record to Execute On Assignment’s Growth
• Attractive Financial Characteristics – Strong Revenue and Substantial Free Cash Flow Generation
Apex53%
Oxford22%
Life Sciences11%
Healthcare7%
Physician7%
4
Large and Growing Provider of Professional Staffing Services• One of the largest professional staffing
companies in the U.S.• $1,476 million LTM revenues1
• ~11,900 contract professionals at approximately 3,000 clients2
• Focused on placing professionals with higher end math and science skills
Broad Capabilities
1 LTM as of September 30, 2012. Pro forma for acquisition of Apex Systems2 Based on Q3 2012 average3 As of September 30, 20124 Staffing Industry Analysts Insight: Staffing Industry Forecast (September 2012)
Revenues by Segment1
Gross Margin by Segment1
• 1,556 staffing consultants2 in 130 branch offices3 in the U.S., Canada, UK, Belgium, Netherlands, Spain and Ireland
• Deliver fast, quality sales and fulfillment services
Established Footprint
• Staffing industry revenue projected to be $127 billion in 20124
• Participates in the most attractive sub-segments of staffing: Healthcare, Life Sciences, Locum Tenens, IT / Engineering
• 2nd largest publicly-traded U.S.professional staffing firm
Large and Growing End
Markets
• One of the highest gross margins in the industry – 30.1% in Q3’121
• High gross margin despite low contribution (~2%) from permanent placement / conversion revenue in Q3 ’121
Attractive Business
Model
35.5% 33.8% 30.6% 28.5% 27.3%
Oxford LifeSciences
Physician Healthcare Apex
$39 $42 $48
$52 $56
2009 2010 2011 2012P 2013P
5
Strategically Positioned to Capture Favorable Trends in Professional Staffing
Professional Staffing Industry Revenue Growth Drivers• Variable cost structure provides potential
cost savings and staff flexibility • Aging U.S. population may constrain
workforce supply• If implemented, healthcare reform may
stimulate staffing demand • Companies are utilizing temporary labor as a
larger percentage of their workforce
Source: Staffing Industry Analysts. Dollars in billions.
1995
Industry Revenue: $55.4 billion
2013P
Industry Revenue: $134.4 billion
Commercial vs. Professional Staffing Trend Structural Change Towards Professional Staffing
• Driven in part by IT staffing (the largest segment)
• Rapid rate of technological change driving companies to flexible workforces
Professional36%
Commercial64%
Professional53%
Commercial47%
Differentiated Platform Featuring High-end and Mission Critical Skill Sets
Industrial Staffing Generalist Staffing Professional Staffing
• Areas of focus: light industrial; clerical and administrative; less specialized skills
• Widely available skill sets
• Providers seek large placements and compete on price (bulk selling)
• Areas of focus: healthcare, scientific, IT, engineering, finance/accounting, legal
• Skills in short supply and critical to revenue potential of clients
• Competition based on quality of professional and speed and relevancy of response
Bill
Rat
es &
Gro
ss M
argi
ns
Specialization & Client “Stickiness”
On Assignment has one of the strongest margins in the industry
Revenue Growth:1 32.2%
Gross Margin: 30.2%
Adj. EBITDA Margin:2 9.7%
PF FY 2011
1 Revenue growth is based on year-over-year change of combination of ASGN and Apex revenue for 2010 and 20112 Adjusted EBITDA presented is one of the non-GAAP financial measures used by the Company and is defined as earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets plus equity-based compensation expense, impairment charges, and acquisition related expenses, which terms might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies and other one-time items. Refer to Appendix for EBITDA reconciliation.
6
7
Established Domestic Footprint With Significant Scale
Our 1,556 staffing consultants in 130 branch offices provide staffing solutions for in-demand, skilled talent
Belgium
Netherlands
UKIreland
Spain
United States Canada
Physician Staffing branch offices
Oxford branch offices
Healthcare/Life Sciences branch officesApex Systems
8
Experienced Management Team With a Proven Track Record to Execute On Assignment’s Growth
Peter DamerisPresident & CEO
• 15 years of staffing/public company experience
• Tenure w/ ASGN: 9 years
• Metamor(MMWW) CEO / Chairman
• Quanta (PWR) EVP/COO
Emmett McGrathPresident
Lab Support & Allied Healthcare
• 25 years of staffing/public company experience
• Tenure w/ ASGN: 7 years
• Yoh Scientific
James Brill Senior VP, CAO
& Treasurer
• 21 years CFO experience, 28 years public company experience
• Tenure w/ ASGN: 5 years
• Diagnostic Products CFO since 1999
• 18 years of staffing industry experience
• Named President of VISTA on Nov 1, 2011
• Medfinders, COO
• WeatherbyLocums, President
• CompHealth
ChristianRutherford
PresidentVISTA Staffing
Solutions
MichaelMcGowan
PresidentOxford Global
Resources & COO
• 15 years of staffing industry experience (13 yrs w/ Oxford, 2 yrs w/ KELYA)
• Tenure w/ ASGN: 5 years
• Automatic Data Processing (ADP), The MEDSTAT Group, Kelly Services (KELYA) Middle Markets Division
KathrynHoffman-Abby
PresidentNurse Travel
• 26 years of staffing industry experience (21 yrs w/ Vista, 5 yrs w/ CHG)
• Tenure w/ ASGN: 5 years
• Founded VISTA in 1990
• Entered the Locum Tenens industry in 1985
Rand BlazerPresident
Apex Systems
• 30 years in professional services industry (consulting and staffing)
• Joined ASGN in 2012
• Apex Systems COO since 2007
• BearingPoint, CEO
Edward PierceExecutive VP
& CFO
• 11 years CFO experience, 21 years public company experience
• Formerly, director of ASGN since 2007
• First Acceptance Corp. (FAC), President
• BindViewDevelopment Corp. (BVEW), CFO
• Metamor(MMWW), CFO
• Arthur Andersen & Co.
Industry Growth2
• $120/hour• ~5 months• U.S.
• $100 million7%
• $109 million7%
• $163 million11%
• $326 million22%
9
Operating in Attractive Professional Staffing Segments
Physician Staffing
Business Description
Professionals– Qualified Database– On Assignment– Full-Time
Employees
LTM Revenues1
% of Total
KeyCustomers
• Physician Staffing (locum tenens)
• 1,300+• ~270• ~200
Apex
• Mission Critical IT
• 400,000+• ~6,300• ~1,100
• $778 million53%
Oxford
• High-end IT
• 35,000+• ~1,400• ~600
Healthcare
• Allied Healthcare and Nurse Travel
• 32,000+• ~1,200• ~200
Life Sciences
• Lab Support, Clinical Research and Engineering
• 44,000+• ~2,200• ~300
Key Statistics– Bill Rate– Engagement Length– Geography
• $59/hour• ~5 months• U.S.
• $35/hour• 2-13 weeks• North America,
Europe
• $47/hour• 3-12 months• North America,
Europe
• $182/hour• 6 weeks• U.S.
• 8%• 10% / 15%• 8%• 12%• 12%
Corporations Corporations Biotech & Pharma Hospitals / Physician Offices
Hospitals / Physician Offices
Labs / UniversitiesHealthcare / Gov
Agencies
1 LTM as of September 30, 20122 Staffing Industry Analysts Insight: Staffing Industry Forecast (September 2012)
$55$64
$32 $35
$61
$28 $27$37
$21 $15$6 $8 $5 $6 $8
$0
$20
$40
$60
$80
$100
$120
$140
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
Adjusted EBITDA Free Cash Flow Capital Expenditures
10
Strong Cash Flow Generation Through Economic CyclesStrong free cash flow generation in up and down economic cycles allow for quickdeleveraging of the balance sheet
($ in millions)
Adj. EBITDA-to-FCF Conversion %: 50% 42% 117% 55%59%
Peak economic cycleEconomicdownturn Expansionary period
Bank DebtBalance: $136 $126 $78 $67
$126
$70
Combined with Apex
$87
$78
$35
$55 $58
Note: Adjusted EBITDA-to-FCF Conversion % represents standalone ASGN financials
11
Disciplined Acquisition Strategy
In January 2007, On Assignment acquired Oxford Global Resources
In January 2007, On Assignment acquired VISTA Staffing Solutions
In May 2012, On Assignment acquired Apex Systems
Purchase Price
Rationale
Integration
• On Assignment purchased Oxford for $212 million, or 9.6x enterprise value to LTM EBITDA
• On Assignment purchased VISTA for $49 million
• On Assignment purchased Apex Systems for $600 million, or 9.2x enterprise value to 2011 EBITDA
• Acquisition represented On Assignment’s entry into the large and growing Information Technology and Engineering Services market
• Oxford supported On Assignment’s growth strategy and provided a niche offering in the IT sector
• Helped On Assignment increase participation in healthcare staffing by entering them into the locum tenens industry
• VISTA has over 200 physicians on assignment daily with an average bill rate of approximately $185 per hour
• Acquisition created the second largest IT staffing provider in the U.S. with approximately $1 billion of revenue from IT staffing
• Expands On Assignment’s business into new verticals (financial services, telecom) and new geographies (within the U.S.)
• No customer overlap and seamless front and back office integration with legacy On Assignment
• 55 out of 60 managers from the Oxford acquisition are still with On Assignment
• Oxford supported On Assignment’s growth strategy and provided a niche offering in the IT sector
• Allows for greater cross-selling opportunities because of minimal overlap in client base
• Apex and Oxford do not compete against one another
• Expected to be immediately accretive on both a GAAP and cash EPS basis (excluding potential synergies)
A Powerful Combination
12
+
Highly Complementary Acquisition
• Focused on different sets of IT skills – no channel conflicts– Oxford: High-end IT– Apex: Mission Critical IT
• Limited integration required• Similar business models and corporate cultures
Revenue Diversification
• Broaden services offering across IT skills• New business verticals and geographical
diversification• Expand permanent placement business• Cross-selling opportunities
Attractive Financial Characteristics
• Accretive to revenue growth and earnings
• Strong conversion of EBITDA to cash flow
• Significant cash tax savings, resulting in anticipated rapid debt paydown
Size and Scale
• Together, creates a Top 3 IT staffing provider in the U.S., according to SIA rankings1
• Based on year-to-date performance above market growth, we believe we will be the 2nd largest IT staffing provider by the end of 2012
• Full spectrum of staffing services (high-end to mission critical)
Source: Staffing Industry Analysts Insight: 2012 List of Largest U.S. IT Staffing Firms (July 2012)
1 Based on FY 2011 estimated revenues
13
Information Technology – Market OverviewForecasted IT staffing revenues to be $23.1 billion in 20121
Growth Characteristics• IT staffing industry is forecasted to grow by 12% in 2012
and 8% in 20131
($ in billions)
Projected Market Size1
- IT staffing involves providing temporary professionals and placing full-time employees in areas rangingfrom multiple platform systems integration to end-user support, including specialists in programming,networking systems integration, database design and help desk support.
Source:1 Staffing Industry Analysts Insight: Staffing Industry Forecast (September 2012)
IndustryPotential
Shortage ofTalent
• IT has recovered quicker than most otherstaffing segments; and is the onlyprofessional staffing segment expectedto surpass 2008 levels in the currentyear
• Growth in 2012 is expected to be drivenby demand in the healthcare industry,given deadlines for conversionsimplemented by the US Dept. of Health& Human Services
• One of the main constraints on growthin this segment is a shortage of talent,and not necessarily demand, due to avariety of organizational, candidate-specific and environmental/marketfactors
$20.5 $19.8
$15.8 $17.9
$20.6 $23.1
$24.9
$10
$15
$20
$25
$30
2007 2008 2009 2010 2011E 2012P 2013P
14
Apex – Segment Overview
Apex Revenue Mix1
• Provides mission critical IT skill sets to Fortune 500 and mid-market companies
• 100+ National Accounts with a presence in 49 markets
– Over 16,000 temporary IT professionals staffedannually
• Service clients in: – Information technology, business services, financials
healthcare, pharmaceuticals, government services,consumer industrials and telecommunicationsindustries
• Provides highly skilled professionals:– Network Engineers– Application Developers– Social & Mobile App. Developers– Help Desk
• Current statistics:– ~6,500 contract professionals at ~650 clients– Average bill rate at $59 an hour– Top 10 clients represent 33% of segment revenue
% of Segment Revenue
$778mm
1 Q3 2012 Average
53%
LTM Revenue Split
Financial25%
A&D / Gov't / Business Services
18%
Industrial18%
Telecom14%
Healthcare / Pharma
14%
Technology & Other11%
15
Oxford – Segment Overview
• “The Right Talent. Right now.®”
• Four divisions:– Oxford International - nation-wide recruitment for nation-
wide vacancies– Oxford & Associates - local recruitment through branch
network– Healthcare IT - functional and technical recruitment in all
aspects of healthcare IT
– Centerpoint - fills permanent staffing needs
• High-end IT and engineering focus– Time sensitive project requirements– Traditional average assignment of approx. 5 months– Average bill rate of $120 per hour1
• Proactive, recruiting-driven organization– Significantly higher success rate filling engagements
than competitors
• Attractive financial characteristics– Minimal client and industry business concentration; no
customer accounts for more than 6% of sales– Top 10 clients represent 16% of segment revenue
Oxford’s disciplined focus on the high-end of IT and engineering markets yields industry leading bill rates, success rates and margins
Oxford Revenue Mix1
1 Q3 2012 Average
$326mm22%
LTM Revenue Split
Information Technology
36%
Engineering28%
Software / Hardware
21%
Healthcare IT13%
Telecom2%
% of Segment Revenue
16
Life Sciences – Market Overview
- Lab support professionals assist clients in the life sciences industries with research and development,product production, quality control and assurance, regulatory affairs and compliance, engineering,consumer testing and clinical research
The U.S. market for outsourced Clinical/Scientific staffing is forecasted to be $1.9 billion in 20121
Industry Highlights
• Highly fragmented; market dynamics are favorable
• Middle market, small/medium clients favor personalized service
• Clinical trials already in progress tend to carry through the length of assignments which can last several months or even years
• The industry is saturated with start-up companies with venture capital-backed funding that, in some cases, may have a need for the use temporary help or “temp-to-perm” staffing models as a way of managing a flexible workforce
Projected Market Size1
Sources:1 Staffing Industry Analysts Insight: Staffing Industry Forecast (September 2012)
($ in billions)
$1.5 $1.6 $1.8 $1.9
$2.1
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2009 2010 2011E 2012P 2013P
11%
LTM Revenue Split
17
Life Sciences – Segment Overview
• The Life Sciences lines of business:– Lab Support– Clinical Research– Engineering
• Operations in the U.S., Canada, and Europe
• Service clients in: – Biotechnology, pharmaceutical, food and beverage,
medical device, personal care, materials sciencechemical, nutraceutical, petrochemical consumerproducts, environmental, and contract manufacturingindustries
• Provides highly skilled professionals:– Chemists, clinical research associates, clinical lab
assistants, engineers, biologists, biochemists,microbiologists, molecular biologists, food scientists,regulatory affairs specialists, lab assistants, andother skilled scientific professionals
• Current statistics:– ~2,200 contract professionals at ~900 clients1
– Average bill rate at $35 an hour1
– Top 10 clients represent 23% of segment revenue
Life Sciences Revenue Mix1
1 Q3 2012 Average
$163mm
0%
2%
3%
3%
3%
3%
4%
7%
16%
18%
19%
21%
0% 5% 10% 15% 20% 25%
Physiology
Other
Medical Devices
Research
University & Municipal
Personal Products
Environmental
Material Science
Food & Beverage
Pharmaceutical
Chemical
Biotechnology
% of Segment Revenue
$2.6 $2.4
$2.7 $2.9
$3.2
$1.5
$2.0
$2.5
$3.0
$3.5
2009 2010 2011E 2012P 2013P
376
394
400
461
582
0 150 300 450 600
Home Health Aides
Food Prep & Serving Workers
Customer Service Reps
Personal & Home Care Aides
Registered Nurses
Employment Grow th (000s)
18
Healthcare – Market Overview
Allied Staffing forecasted revenues to be $2.9 billion in 20121
Industry Highlights• ~13 week assignments• Within allied healthcare specialties, health information
technology is projected to grow the fastest• It is estimated that 60 percent of healthcare workers are in the
allied healthcare field3
• Significant shortage due to growth in population needing care
($ in billions)
Nurse Travel forecasted revenues to be $1.5 billion in 20121
Industry Highlights
Sources:1 Staffing Industry Analysts Insight: Staffing Industry Forecast (September 2012)2 U.S. Department of Health and Human Services, HRSA (2004)3 Center for Health Professionals (2011)
Source: Bureau of Labor Statistics (Dec. 2009)
Allied Health Nurse Travel
• Nurse Travel is estimated to have increased 25% in 2011 and is projected to grow by 15% in 20121
• However, a primary long-term growth driver is nurse shortage, which is expected to grow to 36% by 20202
Occupations with Largest Projected Job Growth ‘08-’18Projected Market Size1
7%
LTM Revenue Split
19
Healthcare – Segment Overview
• The Healthcare lines of business:– Nurse Travel
– Allied Healthcare
• Nurse Travel current statistics:– Rapid response nurses
– Critical position focus
– Average bill rate approx. $68 an hour1
– Approx. 350 nurses at approx. 140 clients1
– Top 10 clients represented 40% of segment revenue
– Gross margin was 25% for the quarter
• Allied Healthcare current statistics:– Offer contract professionals on both a local and
traveling basis ranging from phlebotomists to HIM professionals
– Average bill rate approx. $37 an hour1
– Approx. 970 contract professionals at approx. 500 clients1
– Top 10 clients represented 30% of segment revenue
– Gross margin was 32% for the quarter
Healthcare Revenue Mix1,2
1 Q3 2012 Average2 Excludes Nurse Travel revenue related to labor disruption
$109mm
Allied Healthcare
56%
Nurse Travel44%
% of Segment Revenue
20
Physician Staffing (Locum Tenens) – Market OverviewLocum Tenens forecasted revenues to be $2.1 billion in 20121
Growth Characteristics• Long-term growth may be fueled by a growing shortage,
an aging population, and accessible healthcare insurance to more citizens with healthcare reform, if implemented
• Physicians are “revenue generators”
Sources:1 Staffing Industry Analysts Insight: Staffing industry Forecast (September 2012)2 Association of American Medical Colleges – Wall Street Journal (April 2010)3 2011 Retention Survey, American Medical Group Association and Cejka Search
($ in billions)
Projected Market Size1
- Locum Tenens: involves placing physicians on temp assignments in a variety of healthcare settings
High BarriersTo Entry
Physician Shortage
Physician Workforce Demographics
• Need for malpractice insurance• Complexities involved in recruiting
and marketing physicians• High level of specialized positions
requiring specific training andexperience
• Lack of licensing reciprocity betweenstates (unlike nursing)
• Greater lead time needed tosuccessfully fill positions
• Over the next 15 yrs, the U.S. couldface a shortage of 150,000 doctors2
• The proportion of physicians reportedas working part-time increased to22% for male physicians and 44% forfemale physicians, up from 7% and29%, respectively, in 20053
• Flexible work hours or part-timeoptions were cited as one of the topthree ongoing retention initiatives bymedical group leaders3
$1.6
$1.8 $1.8 $1.8
$2.0 $2.1
$2.3
$1.2
$1.6
$2.0
$2.4
$2.8
2007 2008 2009 2010 2011E 2012P 2013P
7%
LTM Revenue Split
21
Physician Staffing – Segment Overview
• Full-service physician recruitment and staffing company
– Offering contract staffing solutions to commercial, government, and correctional facilities in a variety of physician specialties
• Places physicians throughout the United States, Australia and New Zealand
• Summary statistics:– Approximately 30 specialties through 13
employee teams
– Pool of 1,300+ physicians worldwide, with a range of medical specialties
– Approximately 280 physicians on assignment daily1
• Average domestic locum tenens assignment lasts 6 weeks
– New line of business for longer engagements
Physician Revenue Mix1
1 Q3 2012 Average
$100mm
1%
5%
5%
5%
5%
6%
11%
13%
20%
29%
0% 5% 10% 15% 20% 25% 30%
Radiology
Maternal
OPN
Anesthesiology
IM Subspecialties
Psychiatry
Surgical
Family Practice
Emergency Medicine
Internal Medicine
% of Segment Revenue
22
Financial Highlights
• Track Record of Revenue Growth with Consistent Margin Expansion
• One of the Highest Operating Margins in the Industry
• Solid Balance Sheet
• Substantial Opportunity for Continued Growth
$800
$985
$1,303 $1,476
$0
$400
$800
$1,200
$1,600
2009 2010 2011 9/30/12 LTM
Source: Company managementNote: All data represents the combined financials of ASGN and Apex
Gross M
argin
Adjusted E
BITD
A M
argin
Strong Financial Performance• One of the fastest growing staffing firms in the
U.S. by revenues
• One of the highest profit margins in the industry
• Large scale firm with potential to realize continued operating leverage
Revenues$ in Millions
Adjusted EBITDA & EBITDA Margin$ in Millions
Gross Profit & Margin$ in Millions
23
$55
$78
$126
$152
0%
5%
10%
15%
$0
$40
$80
$120
$160
2009 2010 2011 9/30/12 LTM
Adj. EBITDA Adj. EBITDA Margin
$249 $305
$394 $445
0%
10%
20%
30%
40%
$0
$125
$250
$375
$500
2009 2010 2011 9/30/12 LTM
Gross Profit Gross Margin
10.4% 10.3%
8.0%
11.0% 11.7%
6.9% 6.3% 6.7% 6.8%
9.9% 10.0% 10.0% 9.3%
11.3%
0%
4%
8%
12%
16%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Adjusted EBITDA Margin
24
One of the Highest Operating Margins
Gross Margin
Source: Company management and company filingsNote: All data represents the combined financials of ASGN and Apex. KFRC historical data is not adjusted to exclude clinical research business (divested on April 5th, 2012)
Not Meaningful*Negative Adj.
EBITDA
30.7% 29.7% 29.5%
30.5% 30.7% 31.8% 31.2%
30.1%
32.7% 32.9%
39.8% 39.8% 39.6% 40.4% 40.2%
20%
25%
30%
35%
40%
45%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Perm Placement as % of Revenue & Impact on GM% (Adj. GM% Values Shown)
25
Comparison of Adjusted Gross Margins
1.8% 1.8% 1.9% 1.8% 1.9%
4.1% 3.6% 4.1% 4.8% 4.6%
8.0% 7.7% 8.2% 8.7%
7.9%
0%
3%
6%
9%
12%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
29.5% 28.4% 28.1%
29.2% 29.3% 28.9% 28.6% 27.1%
29.3% 29.6%
34.6% 34.8% 34.2% 34.7% 35.1%
20%
25%
30%
35%
40%
45%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Reported GM% Adjusted GM%Source: Company management and company filingsNote: All data represents the combined financials of ASGN and Apex. KFRC historical data is not adjusted to exclude clinical research business (divested on April 5th, 2012)
Actual Actual Year-over-Year Q3 '12 Q3 '11 Growth 1
Oxford 88,104$ 70,074$ Apex 202,664 NA Life Sciences 40,646 41,820 Physician2 27,479 23,385 Healthcare 29,390 27,091
Consolidated Revenues 388,284$ 162,370$
Oxford 35.5% 35.8%Apex 28.1% NA Life Sciences 34.4% 33.9%Physician 30.5% 33.3%Healthcare 28.9% 27.5%
Consolidated Gross Margin 30.7% 33.6%
Adjusted EBITDA 45,491$ 18,179$ Adjusted EBITDA Margin 11.7% 11.2%
EPS 0.33$ 0.21$ EPS (Excl. Transaction Related Exp.) 0.34$ NA
26%
14%
(3%)
18%
8%
139%
150%
26
Recent Financial Performance
Note: Dollars in thousands, except per share data1 Apex’s year-over-year growth is on a pro forma full quarter basis2 Includes acquisition of HealthCare Partners (Aug 2011)
27
Solid Balance Sheet
• Strong liquidity• $65mm undrawn revolver• Excellent working capital control• Low capital expenditure
requirements
Uses of cash:• Investing in long-term opportunities• Focused on debt paydown to drive
EPS accretion
Note: Dollars in millions
September 30, 2012
Total Cash & Short-Term Investments $13.9
Current Portion of Long-Term Debt 10.0
Long-Term Debt 429.1
Stockholders' Equity 516.5
Total Capitalization $955.5
Guidance Range
Low End - High End
Revenues $385.0 - $389.0
Gross Margin 30.1% - 30.4%
SG&A Expenses $86.0 - $87.0
Depreciation & Amortization $5.3
Stock-Based Compensation $2.9
EPS $0.25 - $0.29
Adjusted EBITDA1 $37.1 - $40.8
Fully Diluted Wtd Avg Shares Outstanding 53.3 million
28
Management Q4 Estimates($ in millions, except per share data)
Note: Achievement of these goals is subject to the various risk factors set forth in our public filings1 Adjusted EBITDA presented is defined as earnings before interest, taxes, depreciation, and amortization of identifiable intangible assets plus
equity-based compensation expense, impairment charges, and acquisition related expenses
Cyclical Stabilization and
Growth
Secular Trends Will Favor On
Assignment
Numerous Areas of Opportunity for
Incremental Revenues
Acquisition Environment Is
Favorable
Significant Sources of EPS
Leverage
29
On Assignment’s Strategic Growth Opportunities
• Permanent placement• Healthcare IT• GSA contracts• Clinical research
• Aging U.S. population may constrain supply of available workforce
• If implemented, healthcare reform should stimulate demand for staffing in the longterm
• On Assignment focuses on the highly-skilled component of the labor force, whichcompanies typically have the hardest time staffing
• Smaller, private companies may look to partner with larger, well capitalized firms orprivate equity as activity and valuations increase
• On Assignment is well positioned to enhance its market position and/or add newcapabilities / service offerings once acquisition stabilization has been completed
• Revenue growth vs. fixed costs creates margin opportunity
• Strong cash flow generation provides liquidity for rapid deleveraging
• 338(h)(10) elections yield an estimated $20 million in annual cash tax savings1
• Temporary help penetration rate still below peak historical levels
• Labor markets indicate job recovery continues to strengthen, albeit at an anemic rate
• Companies will look to temporary staffing to meet cyclical recovery in demand
1 Represents combined potential cash tax shields from elections associated with the acquisitions of Apex, Oxford, and HealthCare Partners
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Key Investment Highlights
• Large and Growing Provider of Professional Staffing Services
• Strategically Positioned to Capture Favorable Trends in Professional Staffing
• Differentiated Platform Featuring High-end and Mission Critical Skill Sets
• Established Domestic Footprint With Significant Scale
• Experienced Management Team With a Proven Track Record to Execute On Assignment’s Growth
• Attractive Financial Characteristics – Strong Revenue and Substantial Free Cash Flow Generation