ASGN Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ASGN Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ASGN Inc (ASGN) filed a Annual Report (10-K) with the SEC on February 23, 2024. ASGN Inc. filed its 2023 Form 10-K on February 23, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 4400 Cox Road, Suite 110, Glen Allen, VA 23060. ASGN Inc. was formerly known as ON ASSIGNMENT INC, with a name change effective March 28, 1993. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking ASGN Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of ASGN Inc.'s financial health, operational performance, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors disclosed in the 10-K are essential for stakeholders to understand the company's revenue streams, profitability, debt levels, and potential challenges in the competitive IT and professional services market.

Risk Assessment

Risk Level: — ASGN Inc shows moderate risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or disclosures that would suggest a high-risk event.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to understand ASGN Inc.'s performance drivers and outlook for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-23 — Filing Date (Filed as of date)
• 1993-03-28 — Date of Name Change (Former company name change)

Key Players & Entities

• ASGN Inc. (company) — Filer name
• ON ASSIGNMENT INC (company) — Former company name
• 4400 Cox Road, Suite 110, Glen Allen, VA 23060 (address) — Business address
• 2023-12-31 (date) — Conformed period of report
• 2024-02-23 (date) — Filed as of date

FAQ

Industry Context

ASGN Inc. operates within the IT and professional services sector, providing specialized staffing and consulting services.

Regulatory Implications

The filing is a standard SEC Form 10-K, adhering to regulations for public companies to disclose annual financial and operational information.

What Investors Should Do

1. Analyze the revenue and net income trends for ASGN Inc. over the past three fiscal years (2021-2023).
2. Examine the company's balance sheet for key financial health indicators such as debt-to-equity ratio and cash reserves.
3. Review any disclosed risk factors to understand potential challenges and their impact on ASGN Inc.'s future performance.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date ASGN Inc. submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, following previous filings which would include quarterly reports (10-Q) and potentially prior annual reports (10-K).

Key Financial Figures

• $0.01 — ion outstanding shares of Common Stock, $0.01 par value. DOCUMENTS INCORPORATED BY R
• $3.0 billion — ket cycles. We have contract backlog of $3.0 billion as of December 31, 2023, which represen
• $580 b — tal addressable market is approximately $580 billion, which includes $400 billion in c
• $400 billion — roximately $580 billion, which includes $400 billion in commercial IT consulting, $121 billi
• $121 billion — 00 billion in commercial IT consulting, $121 billion in government IT consulting, and $59 bi
• $59 billion — illion in government IT consulting, and $59 billion in professional staffing. Our total add

Filing Documents

• asgn-20231231.htm (10-K) — 1325KB
• ex1010arcicsevplanappr12523.htm (EX-10.10) — 81KB
• ex191insidertradingpolicy1.htm (EX-19.1) — 27KB
• ex211subsoftheregistrant20.htm (EX-21.1) — 2KB
• ex231consent2023.htm (EX-23.1) — 3KB
• ex311ceocertification30220.htm (EX-31.1) — 9KB
• ex312cfocertification30220.htm (EX-31.2) — 10KB
• ex321certificationofceo906.htm (EX-32.1) — 5KB
• ex322certificationofcfo906.htm (EX-32.2) — 5KB
• ex971secclawbackpolicyeffe.htm (EX-97.1) — 27KB
• asgn-20231231_g1.jpg (GRAPHIC) — 96KB
• 0000890564-24-000006.txt (&nbsp;) — 7816KB
• asgn-20231231.xsd (EX-101.SCH) — 46KB
• asgn-20231231_cal.xml (EX-101.CAL) — 92KB
• asgn-20231231_def.xml (EX-101.DEF) — 233KB
• asgn-20231231_lab.xml (EX-101.LAB) — 643KB
• asgn-20231231_pre.xml (EX-101.PRE) — 425KB
• asgn-20231231_htm.xml (XML) — 1111KB

Risk Factors

Item 1A. Risk Factors 6

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 13

Cybersecurity

Item 1C. Cybersecurity 13

Properties

Item 2. Properties 14

Legal Proceedings

Item 3. Legal Proceedings 15

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 15 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16

Selected Financial Data

Item 6. Selected Financial Data 17

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 19

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 20

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 41

Controls and Procedures

Item 9A. Controls and Procedures 41

Other Information

Item 9B. Other Information 43

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 44

Executive Compensation

Item 11. Executive Compensation 44

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 44

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 44 PART IV

Exhibits and Financial Statement Schedule

Item 15. Exhibits and Financial Statement Schedule 44

Form 10-K Summary

Item 16. Form 10-K Summary 44

SIGNATURES

SIGNATURES 48 SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements are based upon current expectations, as well as management's beliefs and assumptions and involve a high degree of risk and uncertainty. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Statements that include the words "believes," "anticipates," "plans," "expects," "intends," and similar expressions that convey uncertainty of future events or outcomes are forward-looking statements. Forward-looking statements include statements regarding our anticipated financial and operating performance for future periods. Our actual results could differ materially from those discussed or suggested in the forward-looking statements herein. Factors that could cause or contribute to such differences include, but are not limited to, the following: (1) actual demand for our services; (2) the availability of qualified billable professionals and our ability to attract, train, and retain them; (3) our ability to remain competitive in obtaining and retaining clients; (4) management of our growth; (5) continued performance and integration of our enterprise-wide information systems; (6) our ability to manage our litigation matters; (7) the successful integration of our acquired subsidiaries; (8) maintenance of our Federal Government Segment contract backlog; an d (9) the factors described in Item 1A. Risk Factors of this Annual Report on Form 10-K (" 2023 10-K"). Other factors also may contribute to the differences between our forward-looking statements and our actual results. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future per

Business

Item 1. Business Overview and History ASGN Incorporated ("ASGN," "we," or "us") is a leading provider of information technology (IT) services and solutions to the commercial and government sectors. We operate through two segments, Commercial and Federal Government, and across six industry verticals, which together promote balance, strength, and resiliency throughout economic cycles. From a revenue and margin perspective, ASGN has grown through a combination of organic growth and strategic acquisitions. Over the last five years, we completed 11 "tuck-in" acquisitions. Each of these acquisitions align with our strategy to expand our IT consulting services and solutions capabilities, offer higher-value technical solutions, and become a leading provider of these high-end services to the commercial and federal government markets. From a client perspective, ASGN has grown by effectively understanding our clients' IT needs and providing them with qualified professionals who maintain a unique combination of skills, experience, and expertise to meet those needs. Our clients set rigorous requirements for talent, which have only increased as we've evolved our business to offer higher-end, higher-value IT consulting solutions. To meet these talent requirements, we use our extensive databases and deep talent pool to quickly identify and pre-screen candidates. We are responsible for recruiting, verifying credentials upon request, hiring, administering pay and benefits, compliance and training, as applicable. As we support clients across a diverse set of industry verticals, no client, other than the U.S. federal government, represented more than 10 percent of revenues in 2023. Revenues from contracts directly with several U.S. federal government agencies combined were approximately 24.3 percent of 2023 consolidated revenues. From a business advancement perspective, ASGN invests in six core areas, including leadership, recruitment of in-demand skillsets, training and skil

Risk Factors

Item 1A. Risk Factors Our business is subject to various risks, including, but not limited to those described below, any of which could adversely affect our results of operations and financial condition, and as a result, could cause a decline in the trading price of our common stock. Profitability and Operational Risks If we are not able to remain competitive in obtaining and retaining clients, our future growth will suffer. Many of our agreements may be terminated by clients at will and the termination of a significant number of such agreements would adversely affect our revenues and results of operations. The professional staffing and consulting services industry is highly competitive and fragmented with limited barriers to entry. We compete in national, regional, and local markets with full-service agencies and in regional and local markets with specialized contract staffing agencies and consulting businesses. The success of our business depends upon our ability to continually secure new consulting projects and assignment contracts from clients and to fill them with our billable professionals. Most of our agreements with clients do not provide for exclusive use of our services and many of our agreements may be terminated at will. As such, clients are free to place orders with our competitors. If clients terminate a significant number of our staffing and consulting agreements or do not use us for future assignments and we are unable to generate new work to replace lost revenues, the growth of our business could be adversely affected, and our revenues and results of operations could be harmed. As a result, it is imperative to our business that we maintain positive relationships with our clients. In our consulting business, clients may delay or cancel bookings which may cause expected revenues to be realized in a later period or not at all. If we are not able to comply with performance requirements, our revenues and relationships with our clients may be ad

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View this 10-K filing on SEC EDGAR