Everforth, Inc. (EFOR) 2002 Q1 法說會逐字稿

... of this year versus 5.3 percent a year ago.

……今年相較於一年前的 5.3%。

Conversion fees as a percentage of revenue increased from 2.1 percent to 2.2 percent. The nominal dollars from conversion fees decreased from Q4 but were still relatively high at $927,000 during the recently-completed quarter for an average of $5,500 per conversion.

轉換費用占營收的比例由 2.1% 上升至 2.2%。轉換費用的名目金額較第四季下降，但在剛結束的季度仍維持相對高檔，為 927,000 美元，平均每次轉換約 5,500 美元。

Employees were down 19 percent from a year ago. Bill rates were up approximately 1 percent from a year ago. We had two -- actually one and a half fewer days in the quarter than we did a year ago.

員工人數較一年前下降 19%。計費費率較一年前約上升 1%。本季比一年前少了兩天——其實少了一天半。

On the margin front, our consolidated gross margin decreased about 50 basis points from 32.7 to 32.2 comparing the quarters. The lab segment dropped from 33.0 to 32.2, and the healthcare segment from 32.0 actually increased to 32.2.

在毛利率方面，我們的合併毛利率較去年同期下降約 50 個基點，從 32.7% 降至 32.2%。實驗室部門從 33.0% 降至 32.2%，醫療保健部門則從 32.0% 實際上升至 32.2%。

The breakdown of the factors that contributed to those changes in the consolidated gross margin were, comparing the quarter this year versus a year ago, the actual spread between bill and pay rates expanded. So we had a markup impact of plus 16 basis points.

就導致合併毛利率變動的因素拆解而言，將今年本季與去年同期相比，計費與支付費率之間的實際價差擴大，因此加價率（markup）影響為正 16 個基點。

We had a positive impact on the conversion fees since they went up as a percentage of revenue, of 5 basis points. And worker's comp and other benefits offset that to the tune of 73 basis points for a net swing of 52 basis points to the negative.

由於轉換費用占營收比例上升，帶來正向影響 5 個基點。而勞工補償保險（worker's comp）及其他福利抵銷了 73 個基點，淨變動為負向 52 個基點。

Comparing the quarters sequentially, the markup -- the points -- the basis point increase from the spread between bill and pay rates added 8 basis points. The fee impact was a positive 3 basis points offset by 72 basis points for worker's comp and other benefits.

若以連續季度比較，加價率——也就是計費與支付費率價差所帶來的基點增加——貢獻了 8 個基點。費用影響為正 3 個基點，但被勞工補償保險及其他福利的 72 個基點所抵銷。

On the operating expense, SG&A line, our consolidated percentage of revenues associated with operating expenses increased from 19.4 percent to 22.2 percent in the recent quarter. Overall, it was down in dollar terms by 6 percent, all of that in support costs in .

在營業費用、SG&A 項目方面，我們合併營業費用占營收比例在最近一季由 19.4% 上升至 22.2%。整體以金額計下降 6%，全部來自的支援成本。

The account manager expenses were flat from a year ago. Account managers in total were up 15 percent from a year ago quarter for a total of 205 on average which is down from the 232 average of the fourth quarter.

客戶經理費用與一年前持平。客戶經理總數較去年同期增加 15%，平均合計 205 人，低於第四季平均 232 人。

Sequentially, operating expenses increased from 21.1 percent to 22.2 percent, but were down $528,000, or approximately 5 percent sequentially reflecting reductions in -- both in the field and in support costs.

以連續季度來看，營業費用占比由 21.1% 上升至 22.2%，但金額減少 528,000 美元，約季減 5%，反映了——現場與支援成本兩方面的削減。

Operating margins decreased from 13.3 percent to 10 percent. Net margin, as noted before, from 9.4 to 6.8 percent.

營業利益率由 13.3% 降至 10%。如先前所述，淨利率由 9.4% 降至 6.8%。

Cash and equivalents pre-acquisition basis are up to almost 100,000 -- $100 million, $99,776,000 which is up 31 percent from a year ago excluding the money that we spent on the stock repurchase in the summer and the beginning of -- the end of the third quarter. We have not repurchased any stock since September.

以併購前基礎計算，現金及約當現金上升至接近 100,000——1 億美元，為 99,776,000 美元；在排除我們於夏季以及——第三季末開始進行的庫藏股回購所花費的資金後，較一年前增加 31%。自 9 月以來我們未再回購任何股票。

Accounts receivable is down 21 percent to $21,665,000 from a year ago. Days sales outstanding has decreased, however, from 52 to 50 comparing the year-ago quarter to the current quarter.

應收帳款較一年前下降 21%，至 21,665,000 美元。應收帳款週轉天數（DSO）亦下降，從去年同期的 52 天降至本季的 50 天。

Stockholders' equity is up to -- up 16 percent to $121 million. Capital expense during the quarter was $469,000. Depreciation was $351,000. Goodwill on the books at the moment is $1.5 million.

股東權益上升——增加 16% 至 1.21 億美元。本季資本支出為 469,000 美元。折舊為 351,000 美元。目前帳上商譽為 150 萬美元。

And that's it as far as the recap.

以上就是回顧摘要的部分。

In terms of guidance, we're not updating the guidance that we gave on March 28. And just to reiterate what that guidance was, it was for standalone revenues for the year of 185 to $190 million with earnings per share of 60 to 65 cents on a revenue split of 70 percent coming from lab segment and 30 percent from the health segment -- healthcare segment.

就財測而言，我們不更新 3 月 28 日所提供的指引。再重申一次，該指引為：全年獨立營收 1.85 億至 1.90 億美元，每股盈餘 0.60 至 0.65 美元；營收組成為 70% 來自實驗室部門、30% 來自健康——醫療保健部門。

Combined with HPO for the period running from May 1 through the end of the year, our guidance is still 245 to $255 million with earnings per share of 70 to 75 cents with revenue split of 50 percent from the lab segment and 50 percent from the healthcare segment.

若加上 HPO，期間自 5 月 1 日至年底，我們的指引仍為 2.45 億至 2.55 億美元，每股盈餘 0.70 至 0.75 美元；營收組成為 50% 來自實驗室部門、50% 來自醫療保健部門。

, I'd now like to ask you to open it up for questions. And we'd be happy to take those questions at this time.

, 接下來我想請各位開放提問。我們很樂意在此時回答問題。

At this time, I'd like to remind everyone in order to ask a question, please press star then the number one on your telephone keypad. P

此時提醒各位，如欲提問，請在電話鍵盤上按星號再按數字 1。P

lease hold for your first question.

請稍候您的第一個問題。

Your first question comes from , Lehman Brothers.

您的第一個問題來自, Lehman Brothers。

I'm sorry, sir. He has withdrawn his question. Please hold for your next question.

抱歉，先生。他已撤回提問。請稍候您的下一個問題。

Your next question comes from , Robert W. Baird.

您的下一個問題來自, Robert W. Baird。

Good afternoon.

午安。

Hi .

嗨。

I was hoping -- you talked a little bit about the demand moving away from some metropolitan areas. Could you elaborate a little bit on that in terms of what you feel is happening there and is it a function of the market or more a function of repositioning what you need to do.

我想請教——您稍早提到需求正從某些都會區移出。能否就您認為那裡正在發生什麼事再多說一些？以及這是市場因素所致，還是更偏向於您需要做的重新定位所致？

Well I mean I think it is the feel of the market, and we are responding to it by repositioning. We touched on it relatively briefly because I didn't want to be redundant with past comments made.

嗯，我的意思是，我認為這是市場氛圍的反映，而我們透過重新定位來回應。我們先前提到得相對簡短，因為我不想重複過去已經說過的評論。

We certainly have industrial markets where we have had a high number of working employees in the past that have sustained low demand. And that's our primary movement of account managers at this time.

我們確實有一些工業型市場，過去我們在那裡有大量在職員工，但需求長期偏低。而這也是我們目前調動客戶經理的主要方向。

And we're moving -- those account managers really are following first, biotechnology second, and then personal products and personal care products third. That's the demand we're trying to follow.

我們正在移動——那些客戶經理基本上是在追隨：第一是生物科技，第二是生物技術，第三是個人用品與個人護理產品。這就是我們試圖追隨的需求。

And on the Lab Support side, in terms of trying to follow your resources and dedicating them along those lines?

那在 Lab Support 這邊，就資源跟著需求走、並依照這些方向配置資源而言呢？

That's right. I mean some of -- we've been -- this is a process that takes some time. Because within our model when you deploy a new account manager, or even transfer a trained and skilled account manager, there is some two to three quarters of delay until they get back up to a target level of working employees.

沒錯。我的意思是，其中一些——我們一直在做——這是一個需要時間的流程。因為在我們的模式中，當你部署一位新的客戶經理，或甚至調任一位受過訓練且具備技能的客戶經理，通常會有約兩到三個季度的延遲，才會回到目標的在職員工水準。

So it's a process that we began in the fourth quarter of last year, and it's ongoing.

所以這是我們從去年第四季開始的流程，而且仍在進行中。

OK, and then switching gears a bit, over on the healthcare side, I know that you've talked in the past of your desire to look at healthcare outside the U.S.

好的，那再換個話題，在醫療保健這邊，我知道您過去談過希望在美國以外尋找醫療保健的機會。

I'm wondering if you could just characterize a bit what you're seeing in the marketplace and if this is something where you believe you can do it organically or if you really need to anchor on some sort of acquisition.

我想請您稍微描述一下您在市場上看到的情況，以及您是否認為這件事可以透過有機成長來做到，或是您真的需要以某種併購作為支點。

You know, I think it's fair to say that at least our internal jury is still out on the question of strategy. There are healthcare markets, particularly in the U.K., where temporary staffing in the occupations that we are focused upon are growth markets.

你知道，我想可以公平地說，至少我們內部對於策略問題仍未有定論。有些醫療保健市場，特別是在英國，我們所聚焦的職類之臨時人力派遣屬於成長型市場。

And I don't mean to be circumspect in any way in saying outside the U.S. we're heavily focused on the U.K. temporary staffing market.

我並非想以任何方式含糊其詞；我所說的美國以外，我們高度聚焦在英國的醫療臨時派遣市場。

...I'm sorry?

……抱歉，你說什麼？

I said we're heavily focused on our ability to grow in our next step, if you will, in the healthcare temporary staffing market in the U.K.

我說的是，我們高度聚焦於我們在下一步——如果你願意這麼說——在英國醫療保健臨時派遣市場的成長能力。

OK and in terms of the competition over there, I understand there's, you know, two rather large competitors, one very big one and then beyond that.

好的，那就那邊的競爭而言，我了解那裡有，你知道的，兩個相當大的競爭對手，一個非常大，然後除此之外……

Is that something that, you know, when you compare it to the U.S. market do you see basically a similar opportunity? Or is it more difficult, less difficult? Just trying to size up, you know, relatively where you see the opportunity compared to the U.S.

那是你知道的，當你把它和美國市場相比時，你是否看到基本上類似的機會？還是更困難、或較不困難？我只是想評估一下，你知道的，相對於美國，你認為那裡的機會大概是什麼樣子。

Well I don't think you'd respect me tomorrow if I told you that I ever thought that the opportunity to grow and make money overseas is easier than in the U.S.

嗯，我不認為如果我告訴你，我曾經覺得在海外成長並賺錢比在美國更容易，你明天還會尊重我。

I think English-speaking countries are the easiest place to grow service versus product businesses and to translate success from the U.S. So we're focused very much on the U.K. I think there is an expanding opportunity there.

我認為英語系國家是最容易發展服務型（相較於產品型）業務、並將美國的成功經驗移植出去的地方。所以我們非常聚焦英國。我認為那裡的機會正在擴大。

So there are a couple of bigger competitors. There are also smaller shops as well. I think the markets are similar in dynamic, just different in size.

所以那邊有幾個較大的競爭對手，也有一些較小的業者。我認為市場的動態相似，只是規模不同。

OK great. Thank you.

好的，很棒。謝謝。

Your next question comes from , Lehman Brothers.

下一個問題來自，Lehman Brothers。

Good afternoon, and . I apologize for the strange technical difficulties on my way in. Hope you're well.

午安，以及。我為我進線時遇到的奇怪技術問題致歉。希望你們都好。

We had our own strange technical difficulties at the start of this thing. So might as well continue the trend here.

我們在一開始也遇到一些奇怪的技術問題。所以不如就把這個趨勢延續下去吧。

Well maybe we'll get a little better capital situation in the telecom industry one of these days.

嗯，也許有一天電信產業的資本狀況會好一點。

Anyway, turning to your business, which is much stronger, I wonder if you can just update us a little bit on HPO as it closed the quarter. Did you see revenue pick up sequentially from the $26 million quarterly run rate that I believe you exited the fourth quarter on?

總之，回到你們的業務——這要強得多——我想請你們稍微更新一下 HPO 在本季結束時的情況。你們是否看到營收相較於我記得你們在第四季結束時約 2,600 萬美元的季度化運行水準（run rate）有逐季回升？

Yeah, yes . They had a nice recovery...

是的，是的。他們有不錯的復甦……

HPO brings additional management depth, particularly in local office staffing. They have local office business today, as do we. So we believe that there's a natural synergy in local staffing.

HPO 帶來了額外的管理深度，特別是在當地辦公室的人員配置方面。他們目前就有當地辦公室業務，我們也有。因此我們相信在在地人力派遣方面存在自然的綜效。

HPO also brings more experience than we have in centralized creation of an employee database. Now that in and of itself doesn't make our business, because as you know from studying On Assignment, our account managers interview every candidate that they place before they ever place them.

HPO 也帶來了比我們更豐富的集中式建立員工資料庫的經驗。不過，這本身並不構成我們的核心業務，因為如你研究 On Assignment 所知，我們的客戶經理在安排任何候選人上工之前，都會面試每一位候選人。

That said, there are aspects of centralized recruiting that HPO does very well that we can help to increase the pipeline of candidates to our account managers.

話雖如此，HPO 在集中式招募上有些面向做得非常好，我們可以藉此協助增加提供給客戶經理的候選人管道（pipeline）。

I think right now those are our two primary areas of synergy save the fact that we are, purely by circumstance of the acquisition, increasing our product density in many of our existing clients. And that's never a bad thing.

我認為目前這是我們兩個主要的綜效領域，另外還有一點：純粹因為這次收購的緣故，我們在許多既有客戶中的產品密度提高了。而這從來都不是壞事。

OK, thanks.

好的，謝謝。

And maybe just one last thing, I don't know if you can. Can we get the average daily sales number for January, February, and March. I think you had given those last quarter.

另外最後一點，如果你方便的話：我們能否取得 1 月、2 月與 3 月的平均每日銷售額（average daily sales）？我記得你們上季有提供。

We didn't -- I can give it to you for the quarter. I don't have it for the months -- month by month. It was $677,000 for the quarter.

我們沒有——我可以給你整季的數字。我沒有逐月——按月的數字。整季是 677,000 美元。

OK. Well, then, I guess directionally though, can you just say what the trend was monthly in the quarter?

好的。那麼我想就方向性而言，你能否說一下本季各月的趨勢？

The quarter was pretty flat, . I mean we really didn't see any, you know -- I mean the positive up -- the positive momentum was in the newer allied healthcare areas with clinical and diagnostics with Lab Support and Healthcare Financial, you know, being most of the business were flat. And that contributed to a pretty flat quarter.

本季相當持平，。我的意思是我們真的沒有看到任何——你知道——也就是說，正向的動能是在較新的輔助醫療（allied healthcare）領域，包含臨床與診斷，像是 Lab Support 與 Healthcare Financial；而你知道，佔大部分的業務則是持平。這使得整季相當平坦。

OK thank you.

好的，謝謝。

Your next question comes from gold:, Sidoti & Company.

下一個問題來自 gold:，Sidoti & Company。

Hi.

嗨。

Good afternoon.

午安。

Hi, .

嗨，。

First question was for . In the way of SG&A cuts, do you think we're at a sustainable level? Or are you still looking to cut a little bit more out there?

第一個問題是問。關於 SG&A 的削減，你認為我們已經在可持續的水準了嗎？還是你們仍在尋求再多削減一些？

Oh, gosh , we're going to have -- I mean there'll be some growth from -- just that, you know, the account manager level is part -- I mean part of the revenue growth comes from additional productivity, and part of it will come at some point from staffing back up.

喔，天啊，我們會——我的意思是，會有一些成長——只是你知道，客戶經理層級是其中一部分——我的意思是，營收成長的一部分來自於生產力提升，而另一部分在某個時點會來自於重新增補人力。

We intend to average, you know, close to ten, maybe ten more account managers in this quarter than we did first quarter.

我們打算在本季的平均客戶經理人數，比第一季多接近十位，可能就是多十位。

I think at the corporate level we can sustain at the point where we are now and probably not get much more in the way of cuts at corporate or what we call the support -- you know, field support line item.

我認為在公司層級，我們可以維持在目前這個點，並且在公司端或我們所稱的支援——你知道，現場支援（field support）這個費用項目上，可能不會再有太多削減空間。

But so I think we -- you know, we -- you know, being down over half a million sequentially, and that being both in the field and at the support level is quite an accomplishment. But I don't think there's a lot more room to make cuts in that. It was always a very thin organization, very flat.

所以我認為我們——你知道，我們——你知道，連續季度下降超過 50 萬美元，而且這同時發生在前線與支援層級，這是相當大的成就。但我不認為在那方面還有太多空間可以再削減。它一直都是非常精簡的組織，非常扁平。

We've added people -- we've added senior people that are more expensive. So I think we're kind of there in terms of the level of -- you know, on the SG&A line.

我們增加了人員——我們增加了更資深、成本更高的人員。所以我認為就水準而言——你知道，在 SG&A 這條線上，我們差不多就是在那個位置了。

Oh.

喔。

Yeah.

是的。

OK and then also, I guess the plans on the January call were to end the year up about 10 percent account manager wise. I guess you say you're looking to add 10 or so for the next quarter. Is that still about right for your end, that up about 10 percent from where we are?

好的，另外我想 1 月那通電話中的計畫是年底客戶經理人數約增加 10%。你剛才說下季打算增加約 10 位左右。那麼到年底仍大致是對的嗎？也就是從目前水準增加約 10%？

Right. I mean I'm just looking at our projection now. The average for the fourth quarter in our internal plan is 226, that being almost exactly 10 percent from where we are now.

對。我的意思是我現在看我們的預測。我們內部計畫中第四季的平均值是 226，這幾乎正好比我們現在高出 10%。

Oh.

喔。

Yeah.

是的。

OK and then also if you can just comment, either or , incrementally -- I know you talked a little bit about some potential new business launches on the last call. I'm sure that HPO has tied up a lot of your attention. And I'm just, you know, curious if you're still looking in that direction of a couple more small new business launches there or new lines.

好的，另外如果你能評論一下，或都可以，關於增量方面——我知道你們上次電話會議談到一些可能的新業務啟動。我確定 HPO 佔用了你們很多注意力。我只是好奇，你們是否仍朝著再推出幾個小型新業務或新產品線的方向前進？

We are. I'm going to be discreet at this point. We kind of made an internal agreement that we wouldn't announce specific new divisions until we had some of the competitive factors better sorted out than we do.

是的。我現在會比較謹慎。我們內部有個共識：在我們把一些競爭因素梳理得比目前更清楚之前，不會宣布具體的新事業部。

Sure.

了解。

But we are -- we have started to make assignments in a new vertical. And we're going to be talking about that sometime in the second quarter.

但我們確實——我們已經開始在一個新的垂直領域（vertical）進行派遣。我們會在第二季的某個時候談到這件事。

OK very good.

好的，非常好。

Thanks.

謝謝。

Thank you, .

謝謝你，。

Thanks, .

謝謝，。

Your next question comes from , .

下一個問題來自，。

Yes, good afternoon. A couple of quick questions, following up on the movement of account managers primarily in Lab Support, , you had said it takes about two to three quarters for these account managers to kind of hit the ground running or get back to peak levels of productivity.

是的，午安。有幾個簡短問題，主要是延續關於客戶經理調動的議題，特別是在 Lab Support，，你曾說這些客戶經理大約需要兩到三個季度才能算是上手、或回到生產力的高峰水準。

Is that true?

是這樣嗎？

That's about right. I mean in the traditional account manager model -- traditional meaning the way the model performed in the ten years leading up to the year 2000 -- an account manager's target, if you will, for a good solid account manager was 30 working employees spread across 15 clients.

差不多是這樣。我的意思是，在傳統的客戶經理模式——傳統是指在 2000 年之前的十年裡該模式的運作方式——一位表現良好、穩健的客戶經理，其目標（如果你要這麼說）是 30 位在職員工，分布在 15 個客戶。

Right, right.

對，對。

So for a division average, we're at 24. But when you take somebody -- well I'll give you an example. We're highly underrepresented, and have been for some time, in San Diego.

所以以事業部平均來看，我們是 24。但當你把某個人——嗯，我舉個例子。我們在聖地牙哥的佈局嚴重不足，而且已經有一段時間了。

What happens in that marketplace when we're highly underrepresented there is the competition becomes well represented there. And so as I put, which we will do over the next quarter, account managers in San Diego, then they have to learn the local market, get orientated to the office, start to hit the pavement, and find clients, and then the additional hurdle of overcoming the competition.

當我們在那個市場佈局嚴重不足時，競爭對手就會在那裡佈局得很完整。因此當我在接下來一季把客戶經理配置到聖地牙哥（我們會這麼做）時，他們就必須了解當地市場、熟悉辦公室、開始外出拜訪、尋找客戶，然後還要面對另一個門檻：克服競爭對手。

Now I don't want to sort of play my fiddle about how hard it is to get a business started. But in order to do all those things and get somewhere between twenty and thirty working employees usually takes some six to nine months.

我不想在這裡大談創業有多難。但要做到所有這些，並達到大約 20 到 30 位在職員工，通常需要大約 6 到 9 個月。

OK and with that in mind and, you know, the fact that you said, you know, a lot of that had gone on since the December quarter, where are you in the process of moving people, particularly in Lab Support, from where they are to where they're needed?

好的，基於這點，以及你知道，你說自 12 月那一季以來已經做了很多這類事情，那麼你們在調動人員的進度上——特別是在 Lab Support——從他們目前所在的位置移到需要他們的位置，現在進行到哪一步了？

Are you -- you know, is that half done? Or what would you say?

你是——你知道，那完成一半了嗎？或者你會怎麼說？

You know, actually I think someone asked me this before and I didn't have the percentage. And I may have even committed to have it. I would say half done is about right. We have made a lot of changes so far, and we continue to do so.

你知道，其實我想之前有人問過我這個問題，而我當時沒有那個百分比。我甚至可能承諾過會提供。我會說完成一半差不多是對的。我們到目前為止已經做了很多改變，而且我們還會持續這麼做。

As you know, in healthcare and in labs I'm much more focused on growing by focusing on large metropolitan areas rather than starting what I've come to call the Fort Apache offices with one account manager on their own in a secondary or tertiary city. And we continue to do that.

如你所知，在醫療保健和實驗室業務上，我更專注於透過聚焦大型都會區來成長，而不是在我後來稱之為「Fort Apache」的辦公室——在二線或三線城市只放一位客戶經理單打獨鬥。我們也會持續這麼做。

As I've explained in previous quarters, the trick to -- sort of the Chinese finger trap to all this is what you do with an account manager who is in a secondary or tertiary city with 15 working employees which is a lower level of productivity than you'd like to have, but you don't really want to double up on the headcount. But as soon as you move that person, you lose those 15 working employees.

正如我在前幾季解釋過的，這整件事的訣竅——有點像中國指套陷阱——在於：當一位客戶經理在二線或三線城市，手上有15位在職員工，這樣的生產力低於你希望的水準，但你又不太想把人力編制加倍。可是一旦你把那個人調走，你就會失去那15位在職員工。

Right.

對。

That's why we're doing it in a progressive way instead of kind of a thunderclap reorganization.

所以我們才會用循序漸進的方式來做，而不是那種雷霆式的大重組。

So that'll continue throughout 2002?

所以這會在2002年持續進行？

That'll continue throughout 2002.

這會在2002年持續進行。

OK, I know it's very early in the June quarter, but if you had to give a direction for account manager productivity from the 20 that you ended the March quarter at, what would your best guess be now? Flat, up, or down?

好，我知道現在才剛進入6月季度的很早期，但如果你必須就你們在3月季度結束時的客戶經理生產力20來給個方向，你現在最好的猜測會是什麼？持平、上升，還是下降？

I think near term, flat. And, you know, we don't expect to get back to the 30 level by the end of this year. You know, we'd certainly like to be, you know, pushing for the mid 20s by the end of this year. But I think near term it's going to be 20, 21, at that level.

我認為短期內會持平。而且，你知道，我們不預期在今年年底前回到30的水準。你知道，我們當然希望在今年年底前能朝20多的中段努力。但我認為短期內會是20、21，大概那個水準。

OK, OK, and then you've also moved and hired a number of senior people. For example, you know, you talked about movement from international to Cincinnati to work with HPO. You've hired some new people on board, you know, at a very senior level.

好，好，然後你們也調動並聘用了不少資深人士。比如說，你知道，你提到有人從國際部門調到辛辛那提來和HPO合作。你們也新聘了一些人加入，你知道，是非常資深的層級。

Where are you in that process in terms of completing that and having everyone in place?

就完成這個流程、讓所有人都到位而言，你們目前進度到哪裡了？

Well, short of any additional acquisition activity that might occur in 2002 -- and there is none actively underway -- we're done.

嗯，除非2002年發生任何額外的併購活動——而目前沒有任何正在積極進行的——我們已經完成了。

OK.

好。

We're done. And we have the managers we want everywhere. And rather than review each person's resume, which I'm happy to do, it's fair to say that what we've -- you know, what I've created or tried to create is a mix of staffing and On Assignment experienced executives with executives whose skill set lies in scaling and large management -- large organization management.

我們完成了。我們在各處都有我們想要的管理者。與其逐一檢視每個人的履歷——我也很樂意這麼做——可以公平地說，我們——你知道，我所建立或試圖建立的是一種組合：既有內部培養與On Assignment有經驗的主管，也有其技能組合在於擴張規模與大型管理——大型組織管理的主管。

Right. OK great. Thank you very much.

對。好，太好了。非常感謝。

Thanks, .

謝謝，。

At this time, I would like to remind everyone in order to ask a question please press star, one on your telephone keypad.

此時，我想提醒各位，如欲提問，請按電話鍵盤上的星號再按1。

Your next question comes from , Bank of America Securities.

下一個問題來自

Good afternoon. Thanks.

午安。謝謝。

I'm wondering if you can go back to...

我想知道你是否可以回到……

Your next question comes from , Lehman Brothers.

下一個問題來自

Yes, just one follow up on this bill rate issue, gents. One percent inflation on a consolidated basis in the first quarter, I think you were mid-single digits in the fourth. Can you try to give us a little bit more sense for what has changed, if anything, in the competitive environment or what we should infer from that sort of sequential change?

是的，先生們，就這個帳單費率（bill rate）問題再追問一點。第一季在合併基礎上是1%的通膨，我想第四季你們是中個位數。你們能否試著讓我們更了解一下，競爭環境有沒有任何改變，或我們應該如何解讀這種連續性的變化？

Is it something, you know, by some of the big integrated staffing companies who have divisions in your space? Is it maybe just the organization focused on other matters than bill rate inflation at the moment? Could you give us a little more color on that?

這是不是某些大型整合型人力派遣公司——在你們領域也有事業部——所造成的？還是可能只是組織目前把重點放在其他事情上，而不是帳單費率通膨？你能否多提供一些背景說明？

Well the markups haven't -- the spreads have expanded, .

嗯，加價幅度沒有——價差已經擴大了，。

OK, OK.

好，好。

So it's not a competitive issue or a...

所以這不是競爭問題或……

OK good.

好，很好。

... issue. It's really that the wage rates aren't going up.

……問題。

OK.

好。

And so, you know, we've always just passed along full markup, you know, whatever we had to do in terms of paying employees to attract employees. So all I would read into that slowdown in the bill rate expansion is that there is a corresponding slowdown in the wage payments.

所以，你知道，我們一向都是把完整的加價轉嫁出去；也就是說，為了吸引員工而必須支付員工的部分，我們就照做並加價轉嫁。因此，我對帳單費率擴張放緩的解讀只有一個：對應的薪資支付也在放緩。

As you rolled from 2001 into 2002?

當你們從2001年進入2002年時？

Yeah.

對。

That's very interesting.

這非常有意思。

Yes.

是的。

OK thanks.

好，謝謝。

All right.

好。

Your final question comes from , .

最後一個問題來自

Yeah, going back to your gross margin comment, , if I caught that correctly you said you expect that to come in somewhere around 32.5 percent for all of 2002?

是的，回到你對毛利率的評論，

Yeah.

對。

Is that...

那是……

Well 32.4 percent is the plan at the moment. So thirty -- first quarter was a little bit under...

嗯，目前計畫是32.4%。所以——第一季稍微低於……

Not 32.35, but 32.4.

不是32.35，而是32.4。

Right, well no. But I mean -- but the first quarter was, you know, 32.2 was under our plan. And a lot of it had to do with this -- you know, with bumping up the worker's comp reserves and things like that. That won't happen every quarter. So we're projecting getting back to the mid 32.5 range ...

對，嗯，不是。但我的意思是——第一季是32.2，低於我們的計畫。而其中很大一部分是因為這個——你知道，因為提高了工傷保險（worker's comp）準備金之類的事情。那不會每一季都發生。所以我們預估會回到32.5%中段的區間……

Absolutely. Thanks for being so specific.

完全理解。謝謝你講得這麼具體。

I guess my question comes -- is that including HPO or is that just for your core business?

我想我的問題是——這有包含HPO嗎？還是只是你們的核心業務？

No, that's just the core business.

不，那只是核心業務。

Oh OK because HPO's gross margins are in the upper 20s, right?

喔，好，因為HPO的毛利率是在20%高段，對吧？

That's correct.

沒錯。

OK, I just wanted to clarify that. And on the cap ex, is that $3 million that you would expect to report for the year? Or is that -- would that be, you know, if you were combined together for the whole year?

好，我只是想確認一下。那資本支出（cap ex）方面，那3百萬美元是你預期今年會申報的數字嗎？還是——你知道，如果你們整年都合併在一起的話會是那個數字？

No, that's just a real rough guess over the next 12 months, not just this calendar year. We haven't sat down -- you know, obviously we're going -- we have -- you know, obviously the -- one of the synergies we have -- opportunities for synergy we have with HPO is integrating the enterprise system and doing things...

不，那只是對未來12個月的一個非常粗略的猜測，不只是這個曆年。我們還沒有坐下來——你知道，很明顯我們將會——我們有——你知道，很明顯——我們與HPO的一個綜效——綜效機會之一，是整合企業系統並一起做一些……

Yes.

是的。

...together that we would have done separately. So I just don't know how to add our -- you know, our budgets which are about equal and tell you how much of that will drop out through overlap. But I -- so it was a wild guess over 12 months to say it's $3 million.

……原本我們會各自分開做的事情。所以我不知道該怎麼把我們——你知道，我們的預算（兩邊大致相當）加在一起，然後告訴你有多少會因重疊而消失。但我——所以那只是對12個月的隨口猜測，說大概是300萬美元。

OK thanks. That's very helpful.

好，謝謝。這很有幫助。

OK.

好。

At this time, there are no further questions.

此時沒有其他問題。

OK thanks everyone. We appreciate your attention as always. We look forward to our open day -- our investor day on May 15 and to reporting our results through the second quarter as we make progress.

好，謝謝各位。一如既往，我們感謝各位的關注。我們期待5月15日的開放日——我們的投資人日，也期待在我們取得進展的同時，於第二季期間報告我們的業績。

Thanks, .

謝謝，。

You're welcome, sir.

不客氣，先生。

Thanks, everyone.

謝謝各位。

Thank you for participating in today's On Assignment conference call. You may now disconnect.

感謝您參與今天的On Assignment電話會議。您現在可以掛線。

END

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