x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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95-4023433
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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26745 Malibu Hills Road, Calabasas, CA
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91301
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(Address of principal executive offices)
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(Zip Code)
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(818) 878-7900
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(Registrant’s telephone number, including area code)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
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Smaller reporting company
o
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September 30,
2013 |
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December 31,
2012
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||||
ASSETS
|
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||||
Current Assets:
|
|
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||||
Cash and cash equivalents
|
$
|
45,077
|
|
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$
|
27,479
|
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Accounts receivable, net of allowance of $3,209 and $3,970, respectively
|
267,231
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245,201
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Prepaid expenses
|
7,454
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8,839
|
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Deferred income tax assets
|
10,083
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10,147
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Other
|
2,476
|
|
|
4,289
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Total current assets
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332,321
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|
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295,955
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||||
Property and equipment, net
|
33,481
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26,862
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Goodwill
|
496,553
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496,158
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Identifiable intangible assets, net
|
248,069
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263,840
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Other
|
8,058
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|
15,206
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Total Assets
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$
|
1,118,482
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$
|
1,098,021
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current Liabilities:
|
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||||
Current portion of long-term debt
|
$
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10,000
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$
|
10,000
|
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Accounts payable
|
6,388
|
|
|
6,810
|
|
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Accrued payroll and contract professional pay
|
75,094
|
|
|
59,962
|
|
||
Deferred compensation
|
5,150
|
|
|
10,000
|
|
||
Workers’ compensation and medical malpractice loss reserves
|
11,748
|
|
|
10,327
|
|
||
Income taxes payable
|
12,415
|
|
|
191
|
|
||
Current portion of accrued earn-outs
|
2,259
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|
6,563
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Other
|
16,011
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|
|
14,874
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Total current liabilities
|
139,065
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|
|
118,727
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||
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|
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||||
Deferred income tax liabilities
|
22,963
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|
|
23,009
|
|
||
Long-term debt
|
347,813
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|
|
416,588
|
|
||
Other long-term liabilities
|
5,635
|
|
|
6,974
|
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Total liabilities
|
515,476
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565,298
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Commitments and Contingencies
|
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Stockholders’ Equity:
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||||
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued
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—
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—
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Common Stock, $0.01 par value, 75,000,000 shares authorized, 53,823,353 and 52,960,570 issued and outstanding, respectively
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538
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530
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Paid-in capital
|
489,064
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471,711
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Retained earnings
|
113,789
|
|
|
61,687
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Accumulated other comprehensive loss
|
(385
|
)
|
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(1,205
|
)
|
||
Total stockholders’ equity
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603,006
|
|
|
532,723
|
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Total Liabilities and Stockholders’ Equity
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$
|
1,118,482
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|
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$
|
1,098,021
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Three Months Ended
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Nine Months Ended
|
||||||||||||
September 30,
|
September 30,
|
||||||||||||||
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2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues
|
$
|
432,171
|
|
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$
|
374,511
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$
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1,239,287
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$
|
797,134
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Cost of services
|
301,555
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|
258,880
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|
870,830
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|
544,217
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Gross profit
|
130,616
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|
|
115,631
|
|
|
368,457
|
|
|
252,917
|
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Selling, general and administrative expenses
|
88,529
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|
|
77,424
|
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|
259,144
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|
|
185,342
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Amortization of intangible assets
|
5,199
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|
6,679
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|
15,853
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|
|
11,197
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Operating income
|
36,888
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31,528
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93,460
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|
56,378
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Interest expense, net
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(3,257
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)
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(6,022
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)
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(12,786
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)
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(10,680
|
)
|
||||
Write-off of loan costs
|
—
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|
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—
|
|
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(14,958
|
)
|
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(813
|
)
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||||
Income before income taxes
|
33,631
|
|
|
25,506
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|
|
65,716
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|
|
44,885
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|
||||
Provision for income taxes
|
13,422
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|
10,850
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|
27,075
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|
|
19,105
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Income from continuing operations
|
20,209
|
|
|
14,656
|
|
|
38,641
|
|
|
25,780
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|
||||
Gain on sale of discontinued operations, net of income taxes
|
—
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—
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14,412
|
|
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—
|
|
||||
Income (loss) from discontinued operations, net of income taxes
|
(59
|
)
|
|
847
|
|
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(951
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)
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2,668
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|
||||
Net income
|
$
|
20,150
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|
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$
|
15,503
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$
|
52,102
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$
|
28,448
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Basic earnings per common share:
|
|
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|
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||||||||
Income from continuing operations
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$
|
0.38
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|
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$
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0.28
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|
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$
|
0.72
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|
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$
|
0.58
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Income (loss) from discontinued operations
|
—
|
|
|
0.02
|
|
|
0.26
|
|
|
0.06
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||||
Net Income
|
$
|
0.38
|
|
|
$
|
0.30
|
|
|
$
|
0.98
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
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||||||||
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.37
|
|
|
$
|
0.28
|
|
|
$
|
0.71
|
|
|
$
|
0.56
|
|
Income (loss) from discontinued operations
|
—
|
|
|
0.01
|
|
|
0.25
|
|
|
0.06
|
|
||||
Net Income
|
$
|
0.37
|
|
|
$
|
0.29
|
|
|
$
|
0.96
|
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
||||||||
Number of shares and share equivalents used to calculate earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
53,620
|
|
|
52,131
|
|
|
53,350
|
|
|
44,777
|
|
||||
Diluted
|
54,624
|
|
|
53,162
|
|
|
54,394
|
|
|
45,807
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income to comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
20,150
|
|
|
$
|
15,503
|
|
|
$
|
52,102
|
|
|
$
|
28,448
|
|
Changes in fair value of derivatives, net of tax of $19 and $56 for the three months ended September 30, 2013 and 2012, respectively and $94 and $32 for the nine months ended September 30, 2013 and 2012, respectively
|
29
|
|
|
(93
|
)
|
|
172
|
|
|
(54
|
)
|
||||
Foreign currency translation adjustment
|
1,504
|
|
|
776
|
|
|
648
|
|
|
106
|
|
||||
Comprehensive income
|
$
|
21,683
|
|
|
$
|
16,186
|
|
|
$
|
52,922
|
|
|
$
|
28,500
|
|
|
Nine Months Ended
|
||||||
September 30,
|
|||||||
|
2013
|
|
2012
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
52,102
|
|
|
$
|
28,448
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Gain on sale of discontinued operations, net of income taxes
|
(14,412
|
)
|
|
—
|
|
||
Depreciation and amortization
|
21,658
|
|
|
16,023
|
|
||
Stock-based compensation
|
10,410
|
|
|
6,574
|
|
||
Write-off of loan costs
|
14,958
|
|
|
813
|
|
||
Gross excess tax benefits from stock-based compensation
|
(4,091
|
)
|
|
(2,713
|
)
|
||
Workers’ compensation and medical malpractice provision
|
5,119
|
|
|
2,827
|
|
||
Other
|
1,069
|
|
|
(412
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and divestiture:
|
|
|
|
||||
Accounts receivable
|
(33,992
|
)
|
|
(24,232
|
)
|
||
Prepaid expenses and income taxes
|
3,655
|
|
|
826
|
|
||
Accounts payable
|
(385
|
)
|
|
801
|
|
||
Accrued payroll and contract professional pay
|
19,927
|
|
|
(20,984
|
)
|
||
Deferred compensation
|
(4,850
|
)
|
|
(517
|
)
|
||
Other
|
2,780
|
|
|
7,185
|
|
||
Net cash provided by operating activities
|
73,948
|
|
|
14,639
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Cash paid for property and equipment
|
(12,293
|
)
|
|
(10,883
|
)
|
||
Cash received from sale of discontinued operations, net
|
31,922
|
|
|
—
|
|
||
Cash paid for acquisitions, net of cash acquired
|
—
|
|
|
(347,743
|
)
|
||
Other
|
(1,601
|
)
|
|
(1,885
|
)
|
||
Net cash provided by (used in) investing activities
|
18,028
|
|
|
(360,511
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Principal payments of long-term debt
|
(452,275
|
)
|
|
(160,663
|
)
|
||
Proceeds from term debt
|
383,500
|
|
|
513,000
|
|
||
Proceeds from stock transactions
|
6,723
|
|
|
6,439
|
|
||
Payments of employment taxes related to release of restricted stock awards
|
(6,573
|
)
|
|
(2,312
|
)
|
||
Gross excess tax benefits from stock-based compensation
|
4,091
|
|
|
2,713
|
|
||
Debt issuance costs
|
(6,559
|
)
|
|
(17,103
|
)
|
||
Payments of accrued earn-outs
|
(3,425
|
)
|
|
—
|
|
||
Other
|
(14
|
)
|
|
(32
|
)
|
||
Net cash provided by (used in) financing activities
|
(74,532
|
)
|
|
342,042
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
154
|
|
|
(36)
|
|
||
Net Increase (Decrease) in Cash and Cash Equivalents
|
17,598
|
|
|
(3,866
|
)
|
||
Cash and Cash Equivalents at Beginning of Year
|
27,479
|
|
|
17,739
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
45,077
|
|
|
$
|
13,873
|
|
|
|
|
|
||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
||||
Cash paid for:
|
|
|
|
||||
Income taxes
|
$
|
19,809
|
|
|
$
|
25,304
|
|
Interest
|
$
|
11,944
|
|
|
$
|
9,587
|
|
|
|
|
|
||||
Supplemental Disclosure of Non-Cash Transactions:
|
|
|
|
||||
Acquisition of property and equipment through accounts payable
|
$
|
981
|
|
|
$
|
745
|
|
Acquisition accounting
|
$
|
—
|
|
|
$
|
(982
|
)
|
Equity consideration for acquisition
|
$
|
—
|
|
|
$
|
(225,558
|
)
|
Current assets
|
|
$
|
172,042
|
|
Property and equipment
|
|
902
|
|
|
Goodwill
|
|
264,590
|
|
|
Identifiable intangible assets
|
|
251,555
|
|
|
Other
|
|
494
|
|
|
Total assets acquired
|
|
$
|
689,583
|
|
|
|
|
||
Current liabilities
|
|
$
|
77,905
|
|
Other
|
|
850
|
|
|
Total liabilities assumed
|
|
78,755
|
|
|
Total purchase price
|
|
$
|
610,828
|
|
|
Useful life
|
|
Identifiable Intangible Asset Value
|
||
Contractor relationships
|
5 years
|
|
$
|
10,589
|
|
Customer relationships
|
10 years
|
|
92,147
|
|
|
Non-compete agreements
|
7 years
|
|
2,076
|
|
|
Trademarks
|
indefinite
|
|
146,743
|
|
|
Total identifiable intangible assets acquired
|
|
|
$
|
251,555
|
|
Revenues
|
$
|
1,079,411
|
|
Income from continuing operations
|
$
|
37,215
|
|
Net income
|
$
|
39,883
|
|
|
|
||
Basic earnings per share:
|
|
||
Income from continuing operations
|
$
|
0.72
|
|
Net income
|
$
|
0.77
|
|
|
|
||
Diluted earnings per share:
|
|
||
Income from continuing operations
|
$
|
0.70
|
|
Net income
|
$
|
0.75
|
|
|
|
||
Weighted average number of shares outstanding
|
51,929
|
|
|
Weighted average number of shares and dilutive shares outstanding
|
52,959
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
13,772
|
|
|
$
|
6,408
|
|
|
$
|
40,912
|
|
Income (loss) before income taxes
|
$
|
(119
|
)
|
|
$
|
1,347
|
|
|
$
|
(1,398
|
)
|
|
$
|
4,288
|
|
Provision (benefit) for income taxes
|
$
|
(60
|
)
|
|
$
|
500
|
|
|
$
|
(447
|
)
|
|
$
|
1,620
|
|
Net income (loss)
|
$
|
(59
|
)
|
|
$
|
847
|
|
|
$
|
(951
|
)
|
|
$
|
2,668
|
|
|
September 30,
2013 |
|
December 31, 2012
|
||||
Senior Secured Debt
|
|
|
|
||||
$125 million revolving credit facility, due May 2018
|
$
|
—
|
|
|
$
|
—
|
|
$100 million term A loan facility, due May 2018
|
95,000
|
|
|
—
|
|
||
$275 million term B loan facility, due May 2020
|
262,813
|
|
|
—
|
|
||
$75 million revolving credit facility, repaid May 2013
|
—
|
|
|
—
|
|
||
$100 million term A loan facility, repaid May 2013
|
—
|
|
|
92,500
|
|
||
$365 million term B loan facility, repaid May 2013
|
—
|
|
|
334,088
|
|
||
|
$
|
357,813
|
|
|
$
|
426,588
|
|
2013
|
|
$
|
2,500
|
|
2014
|
|
10,000
|
|
|
2015
|
|
10,000
|
|
|
2016
|
|
10,000
|
|
|
2017
|
|
10,875
|
|
|
Thereafter
|
|
314,438
|
|
|
Total
|
|
$
|
357,813
|
|
|
As of September 30, 2013
|
||||||||||||||
|
Fair Value Measurements Using
|
|
Total
|
||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
||||||||
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
|
||||||||
Contingent consideration
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,259
|
)
|
|
$
|
(2,259
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
As of December 31, 2012
|
||||||||||||||
|
Fair Value Measurements Using
|
|
Total
|
||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
||||||||
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
|
|||||||||
Contingent consideration
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7,577
|
)
|
|
$
|
(7,577
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Contingent consideration
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
(3,171
|
)
|
|
$
|
(9,317
|
)
|
|
$
|
(7,577
|
)
|
|
$
|
(9,856
|
)
|
Payments on contingent consideration
|
—
|
|
|
—
|
|
|
3,425
|
|
|
—
|
|
||||
Fair value adjustment
|
1,039
|
|
|
1,038
|
|
|
1,931
|
|
|
1,408
|
|
||||
Foreign currency translation adjustment
|
(127
|
)
|
|
(129
|
)
|
|
(38
|
)
|
|
40
|
|
||||
Balance at end of period
|
$
|
(2,259
|
)
|
|
$
|
(8,408
|
)
|
|
$
|
(2,259
|
)
|
|
$
|
(8,408
|
)
|
|
Apex
|
|
Oxford
|
|
Life Sciences
|
|
Healthcare
|
|
Physician
|
|
Total
|
||||||||||||
Balance as of December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross goodwill
|
$
|
—
|
|
|
$
|
149,483
|
|
|
$
|
27,668
|
|
|
$
|
122,230
|
|
|
$
|
51,570
|
|
|
$
|
350,951
|
|
Accumulated impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,717
|
)
|
|
—
|
|
|
(121,717
|
)
|
||||||
|
—
|
|
|
149,483
|
|
|
27,668
|
|
|
513
|
|
|
51,570
|
|
|
229,234
|
|
||||||
Apex Acquisition
|
264,590
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264,590
|
|
||||||
Acquisition accounting
|
—
|
|
|
—
|
|
|
1,814
|
|
|
—
|
|
|
(9
|
)
|
|
1,805
|
|
||||||
Translation adjustment
|
—
|
|
|
—
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
529
|
|
||||||
Balance as of December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross goodwill
|
264,590
|
|
|
149,483
|
|
|
30,011
|
|
|
122,230
|
|
|
51,561
|
|
|
617,875
|
|
||||||
Accumulated impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,717
|
)
|
|
—
|
|
|
(121,717
|
)
|
||||||
|
264,590
|
|
|
149,483
|
|
|
30,011
|
|
|
513
|
|
|
51,561
|
|
|
496,158
|
|
||||||
Divestiture - gross goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,717
|
)
|
|
—
|
|
|
(121,717
|
)
|
||||||
Divestiture - accumulated impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
121,717
|
|
|
—
|
|
|
121,717
|
|
||||||
Translation adjustment
|
—
|
|
|
—
|
|
|
395
|
|
|
—
|
|
|
—
|
|
|
395
|
|
||||||
Balance as of September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross goodwill
|
264,590
|
|
|
149,483
|
|
|
30,406
|
|
|
513
|
|
|
51,561
|
|
|
496,553
|
|
||||||
Accumulated impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
$
|
264,590
|
|
|
$
|
149,483
|
|
|
$
|
30,406
|
|
|
$
|
513
|
|
|
$
|
51,561
|
|
|
$
|
496,553
|
|
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Estimated Useful Life
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Intangible assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relations
|
3 months – 10 years
|
|
$
|
103,323
|
|
|
$
|
36,865
|
|
|
$
|
66,458
|
|
|
$
|
103,285
|
|
|
$
|
23,338
|
|
|
$
|
79,947
|
|
Contractor relations
|
2 - 7 years
|
|
37,884
|
|
|
29,858
|
|
|
8,026
|
|
|
37,871
|
|
|
27,754
|
|
|
10,117
|
|
||||||
Non-compete agreements
|
2 - 7 years
|
|
2,995
|
|
|
1,326
|
|
|
1,669
|
|
|
2,986
|
|
|
1,062
|
|
|
1,924
|
|
||||||
|
|
|
144,202
|
|
|
68,049
|
|
|
76,153
|
|
|
144,142
|
|
|
52,154
|
|
|
91,988
|
|
||||||
Intangible assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks
|
|
|
171,916
|
|
|
—
|
|
|
171,916
|
|
|
171,852
|
|
|
—
|
|
|
171,852
|
|
||||||
Goodwill
|
|
|
496,553
|
|
|
—
|
|
|
496,553
|
|
|
496,158
|
|
|
—
|
|
|
496,158
|
|
||||||
Total
|
|
|
$
|
812,671
|
|
|
$
|
68,049
|
|
|
$
|
744,622
|
|
|
$
|
812,152
|
|
|
$
|
52,154
|
|
|
$
|
759,998
|
|
2013
|
$
|
5,143
|
|
2014
|
16,822
|
|
|
2015
|
14,304
|
|
|
2016
|
12,368
|
|
|
2017
|
8,996
|
|
|
Thereafter
|
18,520
|
|
|
|
$
|
76,153
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Weighted average number of common shares outstanding used to compute basic earnings per share
|
53,620
|
|
|
52,131
|
|
|
53,350
|
|
|
44,777
|
|
Dilutive effect of stock-based awards
|
1,004
|
|
|
1,031
|
|
|
1,044
|
|
|
1,030
|
|
Number of shares used to compute diluted earnings per share
|
54,624
|
|
|
53,162
|
|
|
54,394
|
|
|
45,807
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Anti-dilutive common share equivalents outstanding
|
97
|
|
|
170
|
|
|
964
|
|
|
49
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Apex
|
$
|
246,369
|
|
|
$
|
202,664
|
|
|
$
|
692,543
|
|
|
$
|
301,167
|
|
Oxford
|
100,005
|
|
|
88,104
|
|
|
296,741
|
|
|
254,970
|
|
||||
Life Sciences
|
44,124
|
|
|
40,646
|
|
|
126,474
|
|
|
122,506
|
|
||||
Physician
|
26,223
|
|
|
27,479
|
|
|
78,991
|
|
|
76,607
|
|
||||
Healthcare
|
15,450
|
|
|
15,618
|
|
|
44,538
|
|
|
41,884
|
|
||||
|
$
|
432,171
|
|
|
$
|
374,511
|
|
|
$
|
1,239,287
|
|
|
$
|
797,134
|
|
Gross Profit:
|
|
|
|
|
|
|
|
||||||||
Apex
|
$
|
69,448
|
|
|
$
|
56,934
|
|
|
$
|
188,963
|
|
|
$
|
83,917
|
|
Oxford
|
34,660
|
|
|
31,250
|
|
|
101,316
|
|
|
90,266
|
|
||||
Life Sciences
|
14,306
|
|
|
14,002
|
|
|
41,528
|
|
|
41,649
|
|
||||
Physician
|
7,382
|
|
|
8,370
|
|
|
22,505
|
|
|
23,587
|
|
||||
Healthcare
|
4,820
|
|
|
5,075
|
|
|
14,145
|
|
|
13,498
|
|
||||
|
$
|
130,616
|
|
|
$
|
115,631
|
|
|
$
|
368,457
|
|
|
$
|
252,917
|
|
Operating Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Apex
|
$
|
20,021
|
|
|
$
|
13,204
|
|
|
$
|
46,531
|
|
|
$
|
9,556
|
|
Oxford
|
14,084
|
|
|
13,251
|
|
|
39,509
|
|
|
36,007
|
|
||||
Life Sciences
|
2,146
|
|
|
3,020
|
|
|
4,093
|
|
|
8,291
|
|
||||
Physician
|
1,416
|
|
|
3,207
|
|
|
5,497
|
|
|
6,269
|
|
||||
Healthcare
|
(779
|
)
|
|
(1,154
|
)
|
|
(2,170
|
)
|
|
(3,745
|
)
|
||||
|
$
|
36,888
|
|
|
$
|
31,528
|
|
|
$
|
93,460
|
|
|
$
|
56,378
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
411,817
|
|
|
$
|
354,831
|
|
|
$
|
1,179,417
|
|
|
$
|
739,150
|
|
Foreign
|
20,354
|
|
|
19,680
|
|
|
59,870
|
|
|
57,984
|
|
||||
|
$
|
432,171
|
|
|
$
|
374,511
|
|
|
$
|
1,239,287
|
|
|
$
|
797,134
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Total Assets:
|
|
|
|
||||
Apex
|
$
|
664,284
|
|
|
$
|
642,594
|
|
Oxford
|
240,911
|
|
|
231,211
|
|
||
Life Sciences and Healthcare
|
132,008
|
|
|
139,601
|
|
||
Physician
|
81,279
|
|
|
84,615
|
|
||
|
$
|
1,118,482
|
|
|
$
|
1,098,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGES IN RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 COMPARED WITH THE THREE MONTHS ENDED SEPTEMBER 30, 2012
|
|
Three Months Ended
|
|
Change
|
||||||||||||
September 30,
|
|||||||||||||||
|
2013
|
|
2012
|
|
$
|
|
%
|
||||||||
Apex
|
$
|
246,369
|
|
|
$
|
202,664
|
|
|
$
|
43,705
|
|
|
21.6
|
|
%
|
Oxford
|
100,005
|
|
|
88,104
|
|
|
11,901
|
|
|
13.5
|
|
%
|
|||
Life Sciences
|
44,124
|
|
|
40,646
|
|
|
3,478
|
|
|
8.6
|
|
%
|
|||
Physician
|
26,223
|
|
|
27,479
|
|
|
(1,256
|
)
|
|
(4.6
|
)
|
%
|
|||
Healthcare
|
15,450
|
|
|
15,618
|
|
|
(168
|
)
|
|
(1.1
|
)
|
%
|
|||
|
$
|
432,171
|
|
|
$
|
374,511
|
|
|
$
|
57,660
|
|
|
15.4
|
|
%
|
|
Three Months Ended
|
||||||||||||
September 30,
|
|||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Gross Profit
|
|
Gross Margin
|
|
Gross Profit
|
|
Gross Margin
|
||||||
Apex
|
$
|
69,448
|
|
|
28.2
|
%
|
|
$
|
56,934
|
|
|
28.1
|
%
|
Oxford
|
34,660
|
|
|
34.7
|
%
|
|
31,250
|
|
|
35.5
|
%
|
||
Life Sciences
|
14,306
|
|
|
32.4
|
%
|
|
14,002
|
|
|
34.4
|
%
|
||
Physician
|
7,382
|
|
|
28.2
|
%
|
|
8,370
|
|
|
30.5
|
%
|
||
Healthcare
|
4,820
|
|
|
31.2
|
%
|
|
5,075
|
|
|
32.5
|
%
|
||
|
$
|
130,616
|
|
|
30.2
|
%
|
|
$
|
115,631
|
|
|
30.9
|
%
|
|
|
|
|
|
|
|
|
|
|
CHANGES IN RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 COMPARED WITH THE NINE MONTHS ENDED SEPTEMBER 30, 2012
|
|
||||||||||||||
|
Nine Months Ended
|
|
Change
|
|||||||||||
September 30,
|
||||||||||||||
|
2013
|
|
2012
|
|
$
|
|
%
|
|||||||
Apex
|
$
|
692,543
|
|
|
$
|
301,167
|
|
|
$
|
391,376
|
|
|
130.0
|
%
|
Oxford
|
296,741
|
|
|
254,970
|
|
|
41,771
|
|
|
16.4
|
%
|
|||
Life Sciences
|
126,474
|
|
|
122,506
|
|
|
3,968
|
|
|
3.2
|
%
|
|||
Physician
|
78,991
|
|
|
76,607
|
|
|
2,384
|
|
|
3.1
|
%
|
|||
Healthcare
|
44,538
|
|
|
41,884
|
|
|
2,654
|
|
|
6.3
|
%
|
|||
Total
|
$
|
1,239,287
|
|
|
$
|
797,134
|
|
|
$
|
442,153
|
|
|
55.5
|
%
|
|
Nine Months Ended
|
||||||||||||
September 30,
|
|||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Gross Profit
|
|
Gross Margin
|
|
Gross Profit
|
|
Gross Margin
|
||||||
Apex
|
$
|
188,963
|
|
|
27.3
|
%
|
|
$
|
83,917
|
|
|
27.9
|
%
|
Oxford
|
101,316
|
|
|
34.1
|
%
|
|
90,266
|
|
|
35.4
|
%
|
||
Life Sciences
|
41,528
|
|
|
32.8
|
%
|
|
41,649
|
|
|
34.0
|
%
|
||
Physician
|
22,505
|
|
|
28.5
|
%
|
|
23,587
|
|
|
30.8
|
%
|
||
Healthcare
|
14,145
|
|
|
31.8
|
%
|
|
13,498
|
|
|
32.2
|
%
|
||
Total
|
$
|
368,457
|
|
|
29.7
|
%
|
|
$
|
252,917
|
|
|
31.7
|
%
|
|
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
December 31
|
||||||||||
Revenues
|
$
|
156,760
|
|
|
$
|
265,863
|
|
|
$
|
374,511
|
|
|
$
|
380,381
|
|
|
$
|
1,177,515
|
|
Cost of services
|
104,011
|
|
|
181,326
|
|
|
258,880
|
|
|
264,762
|
|
|
808,979
|
|
|||||
Gross profit
|
52,749
|
|
|
84,537
|
|
|
115,631
|
|
|
115,619
|
|
|
368,536
|
|
|||||
Selling, general and administrative expenses
|
42,745
|
|
|
65,173
|
|
|
77,424
|
|
|
80,226
|
|
|
265,568
|
|
|||||
Amortization of intangible assets
|
634
|
|
|
3,884
|
|
|
6,679
|
|
|
6,819
|
|
|
18,016
|
|
|||||
Operating income
|
9,370
|
|
|
15,480
|
|
|
31,528
|
|
|
28,574
|
|
|
84,952
|
|
|||||
Interest expense, net
|
(701
|
)
|
|
(3,957
|
)
|
|
(6,022
|
)
|
|
(5,675
|
)
|
|
(16,355
|
)
|
|||||
Write-off of loan costs
|
—
|
|
|
(813
|
)
|
|
—
|
|
|
—
|
|
|
(813
|
)
|
|||||
Income before income taxes
|
8,669
|
|
|
10,710
|
|
|
25,506
|
|
|
22,899
|
|
|
67,784
|
|
|||||
Provision for income taxes
|
3,622
|
|
|
4,633
|
|
|
10,850
|
|
|
10,268
|
|
|
29,373
|
|
|||||
Income from continuing operations
|
5,047
|
|
|
6,077
|
|
|
14,656
|
|
|
12,631
|
|
|
38,411
|
|
|||||
Income from discontinued operations, net of tax
|
336
|
|
|
1,485
|
|
|
847
|
|
|
1,574
|
|
|
4,242
|
|
|||||
Net income
|
$
|
5,383
|
|
|
$
|
7,562
|
|
|
$
|
15,503
|
|
|
$
|
14,205
|
|
|
$
|
42,653
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.82
|
|
Income from discontinued operations
|
—
|
|
|
0.03
|
|
|
0.02
|
|
|
0.03
|
|
|
0.09
|
|
|||||
|
$
|
0.14
|
|
|
$
|
0.17
|
|
|
$
|
0.30
|
|
|
$
|
0.27
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.80
|
|
Income from discontinued operations
|
0.01
|
|
|
0.03
|
|
|
0.01
|
|
|
0.02
|
|
|
0.09
|
|
|||||
|
$
|
0.14
|
|
|
$
|
0.16
|
|
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of shares and share equivalents used to calculate earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
37,269
|
|
|
44,852
|
|
|
52,131
|
|
|
52,581
|
|
|
46,739
|
|
|||||
Diluted
|
38,154
|
|
|
45,879
|
|
|
53,162
|
|
|
53,680
|
|
|
47,826
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
$
|
5,383
|
|
|
$
|
7,562
|
|
|
$
|
15,503
|
|
|
$
|
14,205
|
|
|
$
|
42,653
|
|
Changes in fair value of derivative, net of income tax of $83, $204, $56, $(322) and $21 respectively
|
—
|
|
|
39
|
|
|
(93
|
)
|
|
33
|
|
|
(21
|
)
|
|||||
Foreign currency translation adjustment
|
1,097
|
|
|
(1,767
|
)
|
|
776
|
|
|
748
|
|
|
854
|
|
|||||
Comprehensive income
|
$
|
6,480
|
|
|
$
|
5,834
|
|
|
$
|
16,186
|
|
|
$
|
14,986
|
|
|
$
|
43,486
|
|
|
ON ASSIGNMENT, INC.
|
|
|
|
|
Date: November 5, 2013
|
By:
|
/s/ Edward L. Pierce
|
|
|
Edward L. Pierce
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
A.
|
The Company currently maintains the Plan, originally adopted on March 18, 2010 and approved by the Company’s stockholders on June 3, 2010.
|
B.
|
Pursuant to Section 11(a) of the Plan, the Board has the authority to amend the Plan at any time and from time to time.
|
C.
|
The Board believes it to be in the best interest of the Company and its stockholders to amend the Plan to revise the definition of “Compensation” in the Plan.
|
2.
|
Section 1(y) of the Plan is hereby amended and restated in its entirety to read as follows:
|
3.
|
This First Amendment shall be and hereby is incorporated in and forms a part of the Plan. Except as expressly provided herein, all terms and conditions of the Plan shall remain in full force and effect.
|
Date: November 5, 2013
|
|
/s/ Peter T. Dameris
|
Peter T. Dameris
|
President and Chief Executive Officer
|
Date: November 5, 2013
|
|
|
|
/s/ Edward L. Pierce
|
|
Edward L. Pierce
|
|
Executive Vice President and Chief Financial Officer
|
Date: November 5, 2013
|
By:
|
/s/ Peter T. Dameris
|
|
|
Peter T. Dameris
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
Date: November 5, 2013
|
By:
|
/s/ Edward L. Pierce
|
|
|
Edward L. Pierce
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|