# Everforth Inc: Form 10-Q for the period ended Mar 31, 2025

- Company: [Everforth Inc](/companies/efor.md) (CIK 890564)
- Form: 10-Q
- Filed: 2025-05-01
- Accepted by EDGAR: Apr 30, 2025, 20:07 ET
- Period: 2025-03-31
- Accession: 0000890564-25-000028
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/890564/000089056425000028/asgn-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/890564/000089056425000028/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $968.3m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $692.9m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $275.4m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $214.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $46.6m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $15.4m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $10.3m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $20.9m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.48 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.48 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 44,000,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $16.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $10.2m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $50.4m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Current assets | at 2025-03-31 | $879.6m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $3.70bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $371.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $1.91bn | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $1.28bn | us-gaap:LongTermDebt |
| Shareholders' equity | at 2025-03-31 | $1.79bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 13,725 characters.

*The information in this discussion 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. 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 those described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 10-K"). In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. All forward-looking statements in this document are based on information available to us as of the filing date of this Quarterly Report on Form 10-Q and we assume no obligation to update any forward-looking statements or the reasons why our actual results may differ.*

### OVERVIEW

ASGN provides information technology ("IT") services and solutions across the commercial and government sectors. ASGN operates through two segments, Commercial and Federal Government. The Commercial Segment, which is the largest segment, provides consulting, creative digital marketing, and permanent placement services primarily to Fortune 1000 and large mid-market companies. The Federal Government Segment provides advanced IT solutions to the Department of Defense, the intelligence community, and key federal civilian agencies, namely the Department of Homeland Security. Virtually all of the Company's revenues are generated in the United States.

### RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2025 COMPARED WITH THE THREE MONTHS ENDED MARCH 31, 2024

### Revenues

Revenues for the quarter were $1.0 billion, down 7.7 percent year-over-year. The table below shows our revenues by segment for the three months ended March 31, 2025 and 2024 (in millions).

| Commercial | 2025 | 2024 | Change | % of Total 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Consulting | $290.1 | $277.0 | 4.7% | 30.0% | 26.4% | 3.6% |
| Assignment | 382.1 | 454.5 | (15.9%) | 39.5% | 43.3% | (3.8%) |
|  | 672.2 | 731.5 | (8.1%) | 69.4% | 69.7% | (0.3%) |
| Federal Government | 296.1 | 317.5 | (6.7%) | 30.6% | 30.3% | 0.3% |
| Consolidated | $968.3 | $1,049.0 | (7.7%) | 100.0% | 100.0% |  |

From an industry perspective, the Company operates in six broad industry verticals. Commercial Segment revenues (69 percent of total revenues) were down 8.1 percent year-over-year and are categorized in five verticals: (i) Financial Services, (ii) Consumer and Industrial, (iii) Technology, Media, and Telecom ("TMT"), (iv) Healthcare, and (v) Business Services. The Consumer and Industrial vertical was up mid-single digits, while the remaining four industry verticals declined year-over-year. Federal Government Segment revenues (31 percent of total revenues), the sixth industry vertical, were down 6.7 percent year-over-year mainly due to a few programs that ended and a slight impact from the Department of Government Efficiency's cost-cutting efforts.

Total IT consulting revenues were $586.2 million (61 percent of total revenues), down 1.4 percent year-over-year. Commercial Segment consulting revenues were $290.1 million, up 4.7 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $296.1 million, down 6.7 percent year-over-year as stated above. Assignment revenues, which totaled $382.1 million (39 percent of total revenues), were down 15.9 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.

### Gross Profit and Gross Margin

The table below shows gross profit and gross margin by segment for the three months ended March 31, 2025 and 2024 (in millions).

|  | Gross Profit 2025 | 2024 | Change | Gross Margin 2025 | 2024 | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Commercial | $217.7 | $233.8 | (6.9%) | 32.4% | 32.0% | 0.4% |
| Federal Government | 57.7 | 62.4 | (7.5%) | 19.5% | 19.7% | (0.2%) |
| Consolidated | $275.4 | $296.2 | (7.0%) | 28.4% | 28.2% | 0.2% |

Gross profit is comprised of revenues less costs of services, which consist primarily of compensation for our contract professionals, other direct costs, and reimbursable out-of-pocket expenses.

Consolidated gross profit declined 7.0 percent year-over-year on a revenue decline of 7.7 percent. Gross margin for the first quarter of 2025 was 28.4 percent, an expansion of 20 basis points compared with the first quarter of 2024. Gross margin for the Commercial Segment was up 40 basis points, reflecting a higher mix of consulting revenues as well as margin expansion in these revenues. Gross margin for the Federal Government Segment was down 20 basis points, primarily due to higher rates of fringe benefits.

### Selling, General, and Administrative Expenses

Selling, general, and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, information systems, rent, public company expenses, and other general and administrative expenses. SG&A expenses were $214.5 million, compared with $210.2 million in the first quarter of 2024. SG&A expenses in the first quarter of 2025 included $3.3 million in acquisition, integration, and strategic planning expenses, compared with $1.2 million in the first quarter of 2024. The first quarter of 2025 also included a $4.4 million one-time write-off related to previously capitalized costs for software enhancements that will no longer be placed into service.

### Amortization of Intangible Assets

Amortization of intangible assets was $14.3 million, compared with $15.1 million in the first quarter of 2024. The decrease was due to older intangibles reaching the end of their useful lives in the second half of 2024.

### Interest Expense, Net

Interest expense, net, which consists primarily of cash-based interest expense, amortization and adjustments to deferred loan costs, and interest income, was $15.4 million, down from $17.6 million in the first quarter of 2024. The decrease is primarily the result of lower interest rates in 2025 on the senior secured credit facility, additionally, the prior year included $1.5 million of costs related to the March 2024 amendment to the senior secured credit facility. The weighted-average outstanding borrowings and cash-based interest rate in the first quarter of 2025 and 2024 were $1.13 billion and 5.5 percent, and $1.04 billion and 6.2 percent, respectively.

### Provision for Income Taxes

The provision for income taxes was $10.3 million, down from $15.2 million in the first quarter of 2024 due to lower income before income taxes. The effective tax rate was 33.0 percent, up from 28.5 percent in the first quarter of 2024. The increase in the effective tax rate relates to tax shortfalls on stock-based compensation.

### Net Income

Net income was $20.9 million, down from $38.1 million in the first quarter of 2024.

### Commercial Segment - Consulting Metrics

Commercial consulting bookings are the value of new contracts entered into during a specified period, including adjustments for the effects of changes in contract scope and contract terminations ("Bookings"). The underlying contracts are terminable by the client on short notice with little or no termination penalties. Measuring Bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. Information regarding Bookings is not comparable to, nor should it be substituted for, an analysis of reported revenues. The book-to-bill ratio for our commercial consulting revenues is the ratio of Bookings to commercial consulting revenues for a specified period. The average duration of commercial consulting projects is approximately one year.

*(Dollars in millions)*

|  | Three Months Ended March 31, 2025 | 2024 | Trailing-Twelve-Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Bookings | $336.9 | $323.2 | $1,295.0 | $1,283.2 |
| Book-to-Bill Ratio | 1.2 to 1 | 1.2 to 1 | 1.1 to 1 | 1.2 to 1 |

### Federal Government Segment Metrics

Contract backlog for our Federal Government Segment represents the estimated amount of future revenues to be recognized under awarded contracts, including task orders and options, at a point in time ("Contract Backlog"). These estimates are subject to change and may be affected by the execution of new contracts, the extension or early termination of existing contracts, the non-renewal or completion of current contracts, and adjustments to estimates for previously included contracts. There is no assurance our contract backlog will result in future revenues. The timing of the execution of new contracts and other changes are affected by the funding cycles of the government and can vary from quarter to quarter. New contract awards are the estimated amount of future revenues to be recognized under contracts awarded during a specified period, including adjustments to estimates for contracts awarded in previous periods (“New Contract Awards”). Information regarding New Contract Awards is not comparable to, nor should it be substituted for, an analysis of reported revenues. Due to variability, New Contract Awards are presented on a trailing-twelve-months (“TTM”) basis. The book-to-bill ratio for our Federal Government Segment is the ratio of New Contract Awards to revenues for a specified period. Contract backlog coverage ratio is calculated as total Contract Backlog divided by TTM revenues.

*(Dollars in millions)*

|  | TTM Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| New Contract Awards | $1,486.3 | $1,144.3 |
| Book-to-Bill Ratio | 1.2 to 1 | 0.9 to 1 |

*(Dollars in millions)*

|  | March 31, 2025 | December 31, 2024 | March 31, 2024 |
| --- | ---: | ---: | ---: |
| Funded Contract Backlog | $501.2 | $529.0 | $520.8 |
| Negotiated Unfunded Contract Backlog | 2,664.4 | 2,589.6 | 2,368.4 |
| Contract Backlog | $3,165.6 | $3,118.6 | $2,889.2 |
| Contract Backlog Coverage Ratio | 2.6 to 1 | 2.5 to 1 | 2.2 to 1 |

### Liquidity and Capital Resources

Our working capital, which is current assets less current liabilities, at March 31, 2025 was $508.1 million, and our cash and cash equivalents were $107.0 million. Our cash flows from operating activities have been our primary source of liquidity and have been sufficient to meet our working capital and capital expenditure needs. At March 31, 2025, we had approximately $250.0 million available under the $500.0 million revolving credit facility. We believe that our cash and cash equivalents on hand, expected operating cash flows, and availability under our revolving credit facility will be sufficient to fulfill our obligations, working capital requirements, and capital expenditures for the next 12 months and beyond.

Net cash provided by operating activities was $16.8 million for the first three months of 2025, compared with $73.3 million in the same period of 2024. Net cash provided by operating activities before changes in operating assets and liabilities was $66.4 million, compared with $77.4 million in the same period of 2024. Changes in operating assets and liabilities resulted in net cash usage of $49.6 million for the first three months of 2025, compared with $4.1 million in the same period of 2024. This year-over-year change primarily related to an increase in accounts receivable days sales outstanding in the first three months of 2025.

Net cash used in investing activities for the first three months of 2025 was $316.3 million, comprised of $306.1 million used to acquire TopBloc and $10.2 million used for capital expenditures. Net cash used in investing activities for the first three months of 2024 was $10.8 million and related to capital expenditures.

Net cash provided by financing activities was $201.2 million for the first three months of 2025 and included net borrowings under the senior secured credit facility totaling $248.7 million, offset by $50.4 million used to repurchase the Company's common stock. Net cash used in financing activities in the first three months of the prior year was $80.0 million and included $79.7 million used to repurchase the Company's common stock.

For details on the Company’s senior secured credit facility, comprised of a revolving credit facility and term loan B, and unsecured senior notes, see *Note 5. Long-Term Debt* in Part I, Item 1 in this Quarterly Report on Form 10-Q ("10-Q").

*Commitments and Contingencies —* There have been no material changes to our contractual cash obligations from those described in our 2024 10-K.

### Recent Accounting Pronouncements

There have been no recent accounting pronouncements that significantly impact the Company.

### Critical Accounting Policies

There were no material changes to our critical accounting policies and estimates during the first quarter of 2025 compared with those disclosed in *Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations* of our 2024 10-K.

## Market risk

As filed, 674 characters.

With respect to our quantitative and qualitative disclosures about interest rates risks, there have been no material changes to the information included in our 2024 10-K. Our exposure to interest rate risk is associated with our debt instruments. See *Note 5. Long-Term Debt* in Part I, Item 1 in this 10-Q for a further description of our debt instruments. A hypothetical 100 basis-point change in interest rates on variable-rate debt would have resulted in an interest expense fluctuation of approximately $7.4 million based on $742.5 million of debt outstanding for any 12-month period. We have not entered into any market risk sensitive instruments for trading purposes.

## Controls and procedures

As filed, 1,622 characters.

As of the end of the period covered by this report, our management carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report. The term "disclosure controls and procedures" means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. "Disclosure controls and procedures" include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

Filed May 1, 2025.
Source: SEC EDGAR, the filing index for accession 0000890564-25-000028. Last ingested by Listed: Oct 31, 2026, 12:55 ET. No prices; not investment advice.