|On Assignment, Inc. Announces Estimated Effect of New U.S. Tax Law on its Previously-Announced Financial Estimates for Fourth Quarter 2017|
As a result of this one-time income tax benefit, our financial estimates
for net income and Adjusted Net Income (a non-GAAP measure) and related
per share amounts have been updated for the fourth quarter of 2017. Our
net income estimate is now
While the Company expects subsequent regulations and interpretations associated with the TCJA to be released that will provide additional guidance on application of the law, the Company currently estimates its effective tax rate for 2018 will range between 25.5 percent and 27.5 percent.
Reasons for Presentation of Non-GAAP Financial Measures
Statements in this release include non-GAAP financial measures. Such
information is provided as additional information, not as an alternative
to our consolidated financial statements presented in accordance with
accounting principles generally accepted in the United States ("GAAP"),
and is intended to enhance an overall understanding of our current
financial performance. These terms might not be calculated in the same
manner as, and thus might not be comparable to, similarly titled
measures reported by other companies. Our press release on
Non-GAAP net income (net income, less income (loss) from discontinued operations, net of tax, plus, as applicable, refinancing costs, acquisition, integration and strategic planning expenses, accretion of fair value discount on contingent consideration, impairment charges, and the tax effect of these items) provides a method for assessing our operating results in a manner that is focused on the performance of our core business on an ongoing basis. Adjusted Net Income (Non-GAAP net income plus amortization of intangible assets, less income taxes on amortization for financial reporting purposes not deductible for income tax purposes) provides a method for assessing our operating results in a manner that is focused on the performance of our core business on an ongoing basis, adjusted for some of the cash flows associated with amortization of intangible assets to more fully present the performance of our acquisitions.
Certain of the above statements made in this news release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements are not guarantees of future performance, and actual results might differ materially. In particular, the Company makes no assurances that the estimates set forth above will be achieved. Factors that could cause or contribute to such differences include actual demand for our services, our ability to attract, train and retain qualified staffing consultants, our ability to remain competitive in obtaining and retaining clients, the availability of qualified contract professionals, management of our growth, continued performance and improvement of our enterprise-wide information systems, our ability to manage our litigation matters, the successful integration of our acquired subsidiaries, the successful implementation of our five-year strategic plan, and other risks detailed from time to time in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2016. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.
Forward-looking statements include statements regarding the estimated
effects of tax legislation on the Company’s earnings for the three
On Assignment, Inc.