Everforth, Inc. (EFOR) 2006 Q3 法說會逐字稿

Good morning, I am Dennis and I will be your conference operator today. At this time, I would like to welcome everyone to the On Assignment third quarter 2006 earnings release conference call. [OPERATOR INSTRUCTIONS I will place the call over to Miss Kristi Wolff, VP of Finance and Controller. Please go ahead, ma'am.

早安，我是 Dennis，今天將擔任各位的電話會議接線員。此刻，我要歡迎各位參加 On Assignment 2006 年第三季財報發布電話會議。[接線員指示]我現在把電話轉交給財務副總裁兼財務控制長 Kristi Wolff 小姐。女士，請開始。

Thank you, Dennis. Before we begin, I would like to remind everyone, as we do each quarter, that our presentation contains predictions, estimates, and other forward-looking statements representing our current judgement of what the future holds. These include words such as forecast, estimate, project, expect, believe, and similar expressions.

謝謝你，Dennis。在開始之前，我想提醒各位，如同我們每一季都會做的，我們的簡報包含預測、估計以及其他前瞻性陳述，代表我們目前對未來情勢的判斷。這些陳述包括如 forecast（預測）、estimate（估計）、project（推估）、expect（預期）、believe（相信）以及類似用語。

We believe these remarks to be reasonable, but they are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. We described some of the risks and uncertainties in yesterday's press release and in our filings with the Securities and Exchange Commission. We do not assume the obligation to update statements made in this conference call. Peter Dameris, our CEO and President provide an overview of our third quarter results.

我們相信這些說明是合理的，但仍可能受到風險與不確定性影響，導致實際結果與前瞻性陳述出現重大差異。我們已在昨日的新聞稿以及向美國證券交易委員會提交的文件中說明部分風險與不確定性。我們不承擔更新本次電話會議中所作陳述之義務。我們的執行長兼總裁 Peter Dameris 將概述第三季業績。

Thank you, Kristi. Good morning. I would like to welcome everyone to the On Assignment 2006 third quarter earnings call. With me today are Emmett McGrath, President of Lab Support, Shawn Mohr, President of Healthcare Staffing, and Kristi will---VP of Finance and Corporate Controller. Kristi will be filling in for Mike Holtzman, our CFO, as he is ill today and will not be able to attend today's call.

謝謝你，Kristi。早安。歡迎各位參加 On Assignment 2006 年第三季財報電話會議。今天與我一同出席的有：Lab Support 總裁 Emmett McGrath、Healthcare Staffing 總裁 Shawn Mohr，以及 Kristi——財務副總裁兼公司財務控制長。由於我們的財務長 Mike Holtzman 今日生病，無法參加本次電話會議，Kristi 將代為出席。

During our call today, I will give a review of the markets we serve and our operational highlights, followed by a more detailed discussion of the performance of our operating segments by the respective presidents. I will then turn the call over to Kristi for more detailed review and discussion of our third quarter financial results and for our financial guidance for the fourth quarter of 2006 and the full year. We will then open up the call up for questions.

在今天的電話會議中，我將先回顧我們所服務的市場與營運重點，接著由各事業部總裁更詳細說明各營運部門的表現。之後我會把電話交給 Kristi，更深入檢視並討論第三季財務結果，以及我們對 2006 年第四季與全年之財務指引。最後我們將開放提問。

This quarter's performance resulted in record revenues for our Company. Our operating income and EPS grew 33.9% and 42.9% respectively on a sequential basis and 123% and 42.9% respectively year-over-year. All divisions contributed to our strong reported results. Excluding revenues derived from staffing hospitals that experienced labor disruptions in the third quarter of 2005, consolidated revenues for the quarter grew year-over-year by 11.3 million or 17.6% to 75.7 million. Consolidated gross margin was 27.5%. This represents a 30 basis point improvement year-over-year and a 60 basis point decline sequentially. As many of you are aware, there are more holiday in the third quarter than in the second quarter and the extra holiday pay affects our gross margin. Gross margins expanded year-over-year in both of our segments.

本季表現使本公司營收創下歷史新高。我們的營業利益與每股盈餘（EPS）分別較前一季成長 33.9% 與 42.9%，並分別較去年同期成長 123% 與 42.9%。所有事業部門皆對我們強勁的公告結果有所貢獻。若排除 2005 年第三季因派遣至發生勞資糾紛之醫院所產生的營收，本季合併營收較去年同期增加 1,130 萬美元或 17.6%，達 7,570 萬美元。合併毛利率為 27.5%。這代表較去年同期提升 30 個基點，但較前一季下降 60 個基點。如各位所知，第三季的假期比第二季多，而額外的假日薪資會影響我們的毛利率。我們兩個事業部門的毛利率皆較去年同期擴張。

Our consolidated hourly bill pay spreads also increased year-over-year. In the six quarters since the first quarter of 2005 we have grown revenues $103 million cumulatively while our consolidated quarterly SG&A has increased approximately 296,000, excluding FAS 123-R expenses and other nonrecurring expenses. Our SG&A in the quarter was higher due to higher head count, a conscious decision due to the strength of our business, establishment of a new telerecruiting group for our nurse travel group, power IT expenses, and approximately 163,000 in higher than normal expenses related to the partial write down to our shelf registration, board expenses, rent deposit write off and deferred compensation expenses.

我們合併的按小時計費與薪資之價差（hourly bill-pay spreads）也較去年同期增加。自 2005 年第一季以來的六個季度中，我們累計營收成長 1.03 億美元，而合併單季銷售、一般及行政費用（SG&A）僅增加約 29.6 萬美元（不含 FAS 123-R 費用及其他一次性費用）。本季 SG&A 較高，原因包括人員編制增加（基於業務強勁而做出的有意決策）、為護理旅行團隊成立新的遠端招募（telerecruiting）小組、Power IT 費用，以及約 16.3 萬美元的高於正常水準費用，與我們對擱置式註冊（shelf registration）的部分沖銷、董事會費用、租金押金沖銷及遞延補償費用相關。

OP income for the quarter was 3.5 million, which includes 861,000 of FAS 123-R expense and was up 1.9 million from the year ago period. For those investors who have followed our Company over the last three years, our third quarter EBITDA exceeded the fully year EBITDA generated by the Company in '03, excluding good will impairment and--- good will impairment charges. Our performance this quarter continues to show the strength of the business model and the labor markets we serve.

本季營業利益為 350 萬美元，其中包含 86.1 萬美元的 FAS 123-R 費用，較去年同期增加 190 萬美元。對於過去三年持續關注本公司的投資人而言，我們第三季的 EBITDA 已超過公司在 2003 年全年的 EBITDA（不含商譽減損及——商譽減損費用）。本季表現持續展現我們商業模式以及所服務勞動市場的強勁。

Exiting the quarter, demand for our services continue to strengthen for all of our divisions. Our weekly revenues averaged $5.9 million for the three weeks ending October 22nd of this year, excluding conversion and direct placement revenues. We averaged 5.1 in the weekly---in weekly assignment revenues for the same three week period one year ago.

在季度結束時，我們各事業部對服務的需求持續增強。以今年 10 月 22 日止三週計（不含轉換與直接媒合安置收入），我們每週平均營收為 590 萬美元。去年同期同樣三週期間，我們每週——每週派遣（assignment）營收平均為 510 萬美元。

In addition our number of hours billed, billable head count, and client count continues to be at the highest levels of 2006. The actions we took regarding reductions in cost of services and bill rate increases over the last nine quarters increased our consolidated gross margins by 30 basis points over the prior year period and allowed us to grow our gross profit, operating income and net income faster than our revenues in the third quarter.

此外，我們的計費工時數、可計費人數以及客戶數，持續維持在 2006 年的最高水準。過去九個季度我們在降低服務成本與提高計費單價方面所採取的行動，使合併毛利率較去年同期提升 30 個基點，並讓我們在第三季的毛利、營業利益與淨利成長速度快於營收成長。

During the quarter we increased our year-over-year productivity per staffing consultant by 8.4% and we achieved the sixth consecutive quarter of net income. I am also very pleased that we exceeded our targeted adjusted EBITDA margin of 7%. Which was originally targeted to be achieved by the end of 2007. Adjusted EBITDA this quarter, which excludes 123R expense, was 7.6% up from 5.3% in the year ago period. All of our divisions positively contributed to our third quarter performance.

本季我們每位派遣顧問的人均生產力較去年同期提升 8.4%，並達成連續第六季獲利。我也非常高興我們超越了目標調整後 EBITDA 利潤率 7%。該目標原本預計在 2007 年底前達成。本季調整後 EBITDA（不含 123R 費用）為 7.6%，高於去年同期的 5.3%。我們所有事業部門皆對第三季表現做出正面貢獻。

To fully appreciate the performance of our Company during the third quarter, investors should evaluate each operating group's performance separately. Our Lab Support segment generated 30.6 million in revenues, up 14.9% year-over-year and had gross margins of 32.7%. The Lab Support gross margin in the quarter was negatively impacted by a worker's compensation reserve adjustment for a claim in a prior period. Lab Support billed approximately 1, 210 clients, down from 1400 in the prior quarter and added 256 new or reactivated clients in the quarter.

為了充分理解本公司第三季的表現，投資人應分別評估各營運群組的績效。我們的 Lab Support 事業部營收為 3,060 萬美元，較去年同期成長 14.9%，毛利率為 32.7%。本季 Lab Support 毛利率受到先前期間一項理賠之勞工補償準備金調整的負面影響。Lab Support 約對 1,210 家客戶開立帳單，較前一季的 1,400 家下降，並於本季新增 256 家新客戶或重新啟用的客戶。

The average number of contract professionals on billing increased by 179 or 9.2%. The average bill rate for this group increased 6.3% year-over-year. Our European operations generated 5 million in revenues, up 23% from the year ago period and had gross margins of 34.1%. During the third quarter our top 10 customers represented 15.4% of the Lab Support segment's total revenues and the average number of staffing consultants was 110, down 3 sequentially.

平均計費中的合約專業人員數增加 179 人，或 9.2%。該群組的平均計費單價較去年同期提高 6.3%。我們的歐洲業務營收為 500 萬美元，較去年同期成長 23%，毛利率為 34.1%。第三季我們前 10 大客戶占 Lab Support 事業部總營收的 15.4%，派遣顧問平均人數為 110 人，較前一季減少 3 人。

The medical, financial, and allied group generated 13.1million in revenues for the quarter, up approximately 18.1% year-over-year. MF&A billed 960 clients, down from 1,090 in the prior quarter and added 284 new or reactivated clients in the quarter. The average number of contract professionals on billing increased by 112 or 13.2% year-over-year. The average bill rate for the group increased nearly 4.3% year-over-year. For the third quarter our top 10 customers in MF&A represented 18.1% of total MF&A revenues and the average number of staffing consultants was 86, flat sequentially.

醫療、財務與相關（Medical, Financial, and Allied；MF&A）群組本季營收為 1,310 萬美元，較去年同期約成長 18.1%。MF&A 對 960 家客戶開立帳單，較前一季的 1,090 家下降，並於本季新增 284 家新客戶或重新啟用的客戶。平均計費中的合約專業人員數較去年同期增加 112 人，或 13.2%。該群組的平均計費單價較去年同期提高近 4.3%。第三季 MF&A 前 10 大客戶占 MF&A 總營收的 18.1%，派遣顧問平均人數為 86 人，較前一季持平。

Turning to the Nurse Travel Group. It generated 32.1---- $32 million in revenues, up 13.3% year-over-year. Excluding revenues derived from staffing hospitals that experienced labor disruptions in the third quarter of '05. Nurse Travel revenues were up 20% year-over-year. The gross margin was 20.3% down 30 basis points compared to the third quarter of 2005.

接著談到護理師差旅（Nurse Travel）事業群。其營收為 3,210 萬——3,200 萬美元，年增 13.3%。若排除 2005 年第三季因醫院發生勞動中斷而產生的人力派遣營收。護理師差旅營收年增 20%。毛利率為 20.3%，較 2005 年第三季下降 30 個基點。

The slide compression in Nurse Travel gross margins was due to increases in housing, and per diem expenses that were not off set by bell rate increases as well as an increase in worker's compensation expense. Going forward, excluding the effect of traditionally paid state bonuses to the nurses in the fourth quarter, we do not expect this situation will persist. The number of nurses billed average 805 compared to 665 in the year prior. The total number of clients billed was 294, up 88 from the year ago period. The average bill rate for the group increased 2.4% over the year ago period.

護理師差旅毛利率下滑，主要是因為住房與每日津貼（per diem）費用增加，未能被帳單費率（bill rate）上調所抵銷，此外工傷補償費用也增加。展望未來，若排除第四季通常支付給護理師的州政府獎金影響，我們不預期此情況會持續。平均計費護理師人數為 805 人，較前一年同期的 665 人增加。計費客戶總數為 294 家，較去年同期增加 88 家。該事業群平均帳單費率較去年同期提高 2.4%。

For the third quarter we added 70 new or reactivated clients and our top ten clients in Nurse Travel represented 48.7% of Nurse Travel revenue versus 56% in the year ago period. During the week of October 22nd of 2006, we billed 202 customers and had 835 nurses on assignment. New nurse orders continue to be at high levels.

第三季我們新增或重新啟用 70 家客戶，且護理師差旅前十大客戶占護理師差旅營收的 48.7%，相較去年同期為 56%。在 2006 年 10 月 22 日當週，我們對 202 家客戶開立帳單，並有 835 名護理師在派遣中。新的護理師訂單仍維持在高檔水準。

We remain focused on our newer lines of business, including H.I.M., clinical research, engineering, local RN, and Direct Hire. These lines of businesses generated 5.8 million in revenues or 7.7% of total revenues for the quarter compared to 5.9% in the third quarter of 2005. If you remember, most of the businesses were launched in 2004 on an organic basis.

我們仍聚焦於較新的業務線，包括 H.I.M.、臨床研究、工程、在地 RN，以及直接聘僱（Direct Hire）。這些業務線本季合計創造 580 萬美元營收，占總營收 7.7%，相較 2005 年第三季為 5.9%。如各位所記得，多數業務是在 2004 年以有機方式推出。

As to the markets served, I would continue to describe each of the end markets we serve as very productive and improved over the second quarter and third quarter of 2006. The labor markets have not tightened to the point that we are experiencing rapid contract employee wage inflation that we cannot pass along to our clients. As our business continues to strengthen, we have started to look for selective acquisitions which would allow us to leverage our fixed costs and increase our services.

就服務的市場而言，我會繼續將我們所服務的各終端市場描述為非常具生產力，且較 2006 年第二季與第三季有所改善。勞動市場尚未緊縮到我們出現無法轉嫁給客戶的合約員工薪資快速通膨。隨著我們的業務持續轉強，我們已開始尋找具選擇性的併購機會，以便槓桿運用固定成本並提升服務內容。

Although there are no pending transactions we are encouraged by the level of interests companies have in joining On Assignment and the number of attractive opportunities that are available to us. This is the ninth consecutive quarter that the Company has met or exceeded its operating objectives and remain consistent with he operating plans that management set forth previously.

雖然目前沒有進行中的交易，但我們對於有意加入 On Assignment 的公司所展現的興趣程度，以及我們可取得的具吸引力機會數量，感到鼓舞。這是公司連續第九個季度達成或超越營運目標，並且與管理層先前提出的營運計畫保持一致。

Going forward, our focus will remain on growing our EBITDA faster than our gross profit and growing our operating income faster than our revenues. Our sixth consecutive quarter of net income was achieved by continuing to increase revenues, expanding gross profit, and focusing on our SG&A expenses. Towards the end of the call today, Kristi will walk you through our forward guidance that was announced in our earnings release. As for the updated 2006 guidance, we continue to remain excited about the ground work we have laid and the strength of the end markets we serve.

展望未來，我們的重點將持續放在讓 EBITDA 的成長快於毛利的成長，以及讓營業利益的成長快於營收的成長。我們連續第六個季度達成淨利，係透過持續提升營收、擴大毛利，並聚焦於 SG&A 費用所達成。在今天電話會議接近尾聲時，Kristi 將帶各位說明我們在財報新聞稿中公布的前瞻指引。至於更新後的 2006 年指引，我們仍對已奠定的基礎以及所服務終端市場的強勁表現感到振奮。

I would now like to turn the call over to Shawn and then Emmett for a more detailed review of operations. Shawn?

接下來我想把電話會議交給 Shawn，之後再由 Emmett 進行更詳細的營運回顧。Shawn？

Thank you, Peter. On Assignment Healthcare Staffings Q3 results continue to show excellent sequential and year-over-year progress. Our conscious Q2 decision in Nurse Travel to focus on shifting our client concentration and expand our client count, combined with a strong demand for our Healthcare staffing services resulted in a 14% sequential and 14.6% year-over-year increase of health care staffing revenues. Revenues for the segment represented 59.6% of the total revenues for the quarter. Gross margin for the segment was 23.9% for the quarter. Up 10 basis points year-over-year and down 20 basis points sequentially.

謝謝你，Peter。On Assignment 醫療人力派遣（Healthcare Staffing）第三季業績持續展現出色的季增與年增進展。我們在第二季於護理師差旅業務上有意識地決定聚焦於調整客戶集中度並擴大客戶數，再加上醫療人力派遣服務需求強勁，使醫療人力派遣營收季增 14%、年增 14.6%。該部門營收占本季總營收的 59.6%。該部門本季毛利率為 23.9%。較去年同期增加 10 個基點，較前一季下降 20 個基點。

Highlights of the Q3 result from our medical, financial and allied business unit are as follows. MF&A revenues were up 18.1% year-over-year and 3.6% sequentially. This performance continues as an atrailing average assignment numbers not including direct hire, conversion or billable expenses for the three weeks ended October 22, 2006 versus the same three week period in the prior quarter were 998,000 in revenues versus 926,000, 1,001 professionals on assignment versus 941 and 600 billed clients versus 602.

我們醫療、財務與專業支援（allied）事業單位第三季成果重點如下。MF&A 營收年增 18.1%，季增 3.6%。此表現延續至近期：截至 2006 年 10 月 22 日止三週的追蹤平均派遣數據（不含直接聘僱、轉任或可計費費用），相較前一季同樣三週期間，營收為 99.8 萬美元對 92.6 萬美元；派遣中的專業人員為 1,001 人對 941 人；計費客戶為 600 家對 602 家。

All these early fourth quarter results are at or above the third quarter averages and are being achieved with staffing consultant levels consistent with 2005 and the previous quarter and during a quarter that traditionally slows down due to holidays and hiring deceleration. As you may recall, a large number of offices were closed over two years ago under previous management.

第四季初的這些結果皆達到或高於第三季平均水準，且是在派遣顧問（staffing consultant）人力水準與 2005 年及前一季一致的情況下達成；同時也發生在一個因假期與招募放緩而傳統上會降速的季度。各位或許記得，在前任管理團隊任內，兩年多前曾關閉大量辦公室。

Since implementing a revitalization plan, we now have markets that have been reopened for two years and many are gaining significant headway in the most recent quarters. As our brand and service quality become better known. We continue to gain market share and are seeing expanding staffing consultant productivity levels.

自從推動振興計畫以來，我們目前已有市場在重新開放後運作滿兩年，且許多市場在最近幾季取得顯著進展。隨著我們的品牌與服務品質更為人所知。我們持續取得市占，並看到派遣顧問生產力水準擴大提升。

Now let me turn to our Nurse Travel division. Nurse Travel revenues for Q3 increased 18.8% sequentially. As discussed in the Q2 conference call, we anticipated that our Q3 revenues would be positively affected from the previous quarter's decision to focus on shifting our client concentration and expand our client count.

接著我談談護理師差旅事業部。護理師差旅第三季營收季增 18.8%。如同在第二季電話會議中所討論，我們預期第三季營收將因前一季決定聚焦於調整客戶集中度並擴大客戶數而受到正面影響。

The net effect of this client diversification effort is that we have over the last quarter increased our weekly billed client count from 165 at the beginning of Q2 to a high of 215 by the end of Q3. During the same period, we experienced an increase in our weekly nurses on billing from a low of 635 early in Q2 to a high of 838 by the end of Q3. On Assignment Nurse Travel is now in a much better position to grow future revenues off of an expanded client base and available nurse pool.

這項客戶多元化努力的淨效果是：在過去一季中，我們每週計費客戶數從第二季初的 165 家提高到第三季末最高 215 家。同一期間，我們每週計費中的護理師人數從第二季初低點 635 人增加到第三季末高點 838 人。On Assignment 護理師差旅目前在擴大的客戶基礎與可用護理師人力池之上，已處於更有利的位置以推動未來營收成長。

This performance continues as the trailing average assignment numbers for the three weeks ended November 22, 2006 versus the same three week period in the prior quarter, were 2.534 million in revenues versus 2.433 million, 835 nurses on assignment versus 779, and 206 billed clients versus 203.

此表現仍在延續：截至 2006 年 11 月 22 日止三週的追蹤平均派遣數據，相較前一季同樣三週期間，營收為 253.4 萬美元對 243.3 萬美元；派遣中的護理師為 835 人對 779 人；計費客戶為 206 家對 203 家。

Our highly focused operational execution over the ast two years has made us more diversified, niche focused, and less susceptible to large client demand changes. We have focused on broadening our client base with great success, while at the same time working to maintain a high nurse reassignment rate. We also continued to expands increases in market demand within the types of highly skilled nurse disciplines we place and our biggest challenge is always continuing to attract newly high skilled nurses in our supply pool.

過去兩年我們高度聚焦的營運執行，使我們更加多元化、更聚焦利基市場，且較不易受到大型客戶需求變動影響。我們成功地擴大客戶基礎，同時也致力於維持高護理師再派遣率。我們也持續擴大並提升在我們所派遣之高技能護理專科類別中的市場需求；而我們最大的挑戰始終是持續吸引新的高技能護理師加入我們的人才供給池。

I'm pleased that our new nurse applicant numbers increased sequentially and we experienced an expanding nurse pool in Q3, as we hoped. Knowing that the available nurse pool normally expands late in Q2, we took the opportunity, starting in June, to implement a new sourcing and telerecruiting program focused on identifying qualified nurses interested in being travelers.

我很高興新護理師申請人數呈現季增，且如我們所期望，第三季護理師人力池也有所擴大。鑑於可用護理師人力池通常在第二季後段擴大，我們自 6 月起把握機會，導入新的招募來源與電話招募（telerecruiting）計畫，聚焦於辨識有意成為差旅護理師的合格護理師。

Although in its early stages, this telerecruiting group has helped stimulate added supply within the quarter , and we anticipate that it will continue paying dividends. Our value propositions, delivery model and focus on placing high demand and highly skilled nursing positions continues to make us uniquely qualified and different than other nurse travel companies and allows us continued growth opportunities.

雖然仍在早期階段，這個電話招募團隊已在本季協助帶動額外供給，我們預期它將持續帶來成效。我們的價值主張、交付模式，以及聚焦於配置高需求且高技能的護理職缺，使我們具備獨特資格並與其他護理師差旅公司有所區隔，並讓我們持續擁有成長機會。

With that, I will pass the call over to Emmett McGrath, our President of Lab Support. Emmett?

那麼，我將把電話會議交給我們實驗室支援事業部總裁 Emmett McGrath。Emmett？

Thank you, Shawn, and good morning. As you have heard earlier today, the Lab Support segment had a very strong quarter. Both our U.S. and European operations generated impressive results, consistently reaching new highs in key performance areas. I am pleased to report that revenues for the segment increased 14.9% year-over-year and 5.2% sequentially.

謝謝你，Shawn，大家早安。如同各位今天稍早所聽到的，實驗室支援事業部本季表現非常強勁。我們在美國與歐洲的營運都交出亮眼成績，在關鍵績效領域持續創下新高。我很高興報告，本事業部營收年增 14.9%，季增 5.2%。

By division, the U.S. operations grew 13.5% year-over-year and Europe, an impressive 23%. Revenues for this segment represented 40.4% of the total revenues for the quarter. Gross margins for the segment were 32.7% for the quarter. A 40 base basis point increase over the same quarter last year. Although satisfactory, gross margin for the quarter was negatively impacted due to an increase in the worker's compensation reserve related to prior quarter claims activity. Absent these charges and on a normalized basis, gross margin was 33.2%, which represent a 90 basis point increase over last year.

按部門別來看，美國營運年增 13.5%，歐洲則高達 23%。本事業部營收占本季總營收的 40.4%。本事業部本季毛利率為 32.7%。較去年同期增加 40 個基點。雖然表現令人滿意，但本季毛利率因與前一季理賠活動相關的勞工補償準備金增加而受到負面影響。若排除這些費用並以常態化基礎計算，毛利率為 33.2%，較去年增加 90 個基點。

I attribute the positive performance of the Lab Support statement to the following key operational factors. First, our media focus during the quarter was to continue to build upon the momentum realized in the first two quarters.

我將實驗室支援事業部的正向表現歸因於以下幾項關鍵營運因素。第一，我們本季的媒體策略重點是持續延續前兩季所累積的動能。

Key focus areas were and continue to be effective delivery of high margin contract and direct hire service offerings, new business development, greater contributions from newer contract awards, reactivation of former clients and greater penetration with existing clients. As a result, we were successful in improving gross profit by expanding bill and pay rates, increasing the number of contract professionals on assignment and gaining greater client depth.

關鍵聚焦領域包括且仍將包括：有效交付高毛利的合約與直接聘僱服務方案、新業務開發、較新的合約得標案帶來更大貢獻、重新啟動過往客戶，以及在既有客戶中提高滲透率。因此，我們透過提高計費與支付費率、增加派遣中的合約專業人員數量，以及加深客戶合作深度，成功提升了毛利。

Second, our commitment to maintain and expand gross margins through internal and external efforts. Internally, we have been successful in reducing and controlling our cost of services. We continue to realize margin expansion as a result of our prior decision to modify contracter benefits and minimize nonbillable expenses.

第二，我們致力於透過內外部努力維持並擴大毛利率。在內部方面，我們成功降低並控管服務成本。由於先前決定調整承包人福利並將非計費費用降至最低，我們持續實現毛利率擴張。

Externally, our staffing consultants excelled in maximizing margins through consistent pricing practices, engaging clients that value our specialized services, increasing direct hire and conversion activities, avoiding high risk work environments, passing through expenses and tax increases, and finally migrating to higher level skills discipline.

在外部方面，我們的人才派遣顧問透過一致的定價作法、與重視我們專業服務的客戶合作、增加直接聘僱與轉任活動、避開高風險工作環境、轉嫁費用與稅負增加，並最終轉向更高階技能領域，在毛利最大化方面表現出色。

Third, our attention to staffing consultant productivity. During the quarter, gross profit per staffing consultant increased approximately 10.2% over the same quarter last year. And 4.7% sequentially. This improvement is in direct response to our focused operation model, attention to individual performance, demand for our services and the quality of our staffing consultants.

第三，我們重視派遣顧問的生產力。本季每位派遣顧問的毛利較去年同期約增加 10.2%。並較前一季增加 4.7%。此改善直接反映我們聚焦的營運模式、對個人績效的重視、對我們服務的需求，以及派遣顧問的品質。

Fourth, our growth in newer business lines. Clinical research and engineering grew revenues nearly 97.7% over the same quarter last year and 30.9% sequentially. I attribute this performance to greater client penetration, [aspective] delivery of our niche of service offering. Quality of staffing consultants and increase in new client engagement.

第四，我們在較新的業務線上成長。臨床研究與工程業務營收較去年同期成長近 97.7%，較前一季成長 30.9%。我將此表現歸因於更深的客戶滲透、[aspective] 我們利基服務方案的交付、派遣顧問的品質，以及新客戶互動的增加。

Early into the fourth quarter of 2006, I am encouraged with our operating trend, job order flow, and pipeline of new business opportunities. To ensure continued profitable growth, we remain committed to maintaining and expanding gross margin, gaining greater operational leverage, controlling costs and off setting seasonal challenges we face, such as fewer billable days and the typical client holiday closures. I am confident that the last [core] segment has the necessary leadership, field staff and demand for its services to make the fourth quarter a success.

進入 2006 年第四季初期，我對我們的營運趨勢、職缺訂單流量以及新業務機會管線感到鼓舞。為確保持續的獲利成長，我們仍致力於維持並擴大毛利率、取得更高的營運槓桿、控制成本，並因應我們面臨的季節性挑戰，例如可計費天數較少以及客戶典型的假期關閉。我有信心，最後這個 [core] 事業部具備必要的領導團隊、前線人員以及服務需求，能讓第四季取得成功。

I would now like to turn the call over to Kristi. Kristi?

接下來我想把電話會議交給 Kristi。Kristi？

Thank, Emmett. Consolidated revenues were 75.7 million. Up 10.3% sequentially. There were 62.5 billing days in the quarter compared with 64 days in Q3, 2005. And 63.5 days in Q2, 2006. For Nurse Travel, there were 92 billing days compared with 92 days in Q3, '05 and 91 days in Q2, 2006. Lab Support segment revenues were 30.6 million. Up 5.2% sequentially and represented 40.4% of total revenues. Lab Support Europe revenues were 5 million. Up 18.6% sequentially.

謝謝你，Emmett。合併營收為 7,570 萬。較前一季成長 10.3%。本季計費天數為 62.5 天，去年第三季為 64 天。2006 年第二季為 63.5 天。就護理旅派（Nurse Travel）而言，計費天數為 92 天，與 2005 年第三季的 92 天相同，2006 年第二季為 91 天。實驗室支援事業部營收為 3,060 萬。較前一季成長 5.2%，占總營收的 40.4%。實驗室支援歐洲營收為 500 萬。較前一季成長 18.6%。

On a constant currency basis, revenues were up 16.5% year-over-year and up 14.2% sequentially. Lab year revenues were 6.7% of total revenues for the quarter. Health care staffing revenues were 45.1 per---45.1 million up 14% sequentially. And represented 59.6% of total revenues. Within health care staffing, Nurse Travel revenues were 32 million. Up 18.8% sequentially and represented 42.3% of total revenues.

以固定匯率計算，營收年增 16.5%，季增 14.2%。Lab year 營收占本季總營收的 6.7%。醫療照護人力派遣營收為 4,510 萬，較前一季成長 14%。並占總營收的 59.6%。在醫療照護人力派遣中，護理旅派營收為 3,200 萬。較前一季成長 18.8%，占總營收的 42.3%。

MF&A revenues were 13.1 million up 3.6% sequentially and comprised 17.3% of total revenues. Conversion and direct hire revenues totalled 2 million. Compare with 1.4 million for Q3, 2005 and 1.7 million in Q2, 2006. Converse and direct hire revenues represented 2.6% of total revenues versus 2.1% for Q3, 2005 and 2.5% in Q2, '06. Consolidated gross profit was 20.8 million for the quarter and consolidated gross margin was 27.5%, compared with 27.2% in Q3, 2005 and 28.1 in Q2, '06.

MF&A 營收為 1,310 萬，較前一季成長 3.6%，占總營收的 17.3%。轉任與直接聘僱營收合計 200 萬。相較於 2005 年第三季的 140 萬，以及 2006 年第二季的 170 萬。轉任與直接聘僱營收占總營收的 2.6%，高於 2005 年第三季的 2.1%，亦高於 2006 年第二季的 2.5%。本季合併毛利為 2,080 萬，合併毛利率為 27.5%，相較於 2005 年第三季的 27.2% 以及 2006 年第二季的 28.1%。

Lab Support gross profit was approximately 10 million for the quarter which was a gross margin of 32.7% compared to 32.3% for Q3, 2005. And 33.4% for Q2, 2006. The 40 basis point increase year-over-year was primarily related to increase direct hire revenue and lower holiday and appreciation pay, offset by higher worker's compensation expense and payroll taxes.

實驗室支援本季毛利約為 1,000 萬，毛利率為 32.7%，相較於 2005 年第三季的 32.3%。以及 2006 年第二季的 33.4%。年增 40 個基點主要與直接聘僱營收增加，以及假期與表揚薪資較低有關，但部分被較高的勞工補償費用與薪資稅所抵銷。

Healthcare staffing gross profit was 10.8 million for the quarter. Which was a gross margin of 23.9% compared with 23.8% for Q3, 2005 and 24.1% for Q2, 2006. And within the health care staffing segment, Nurse Travel gross profit was 6.5 million which was a gross margin of 20.3% compared to 20.6 in Q3, 2005 and 20.7 for Q2, 2006. The 30 basis point decrease year-over-year was primarily related to higher expenses for travelling nurses, per diems, and medical expense, and worker's compensation expense, offset by higher bill pay margins.

醫療照護人力派遣本季毛利為 1,080 萬。毛利率為 23.9%，相較於 2005 年第三季的 23.8% 以及 2006 年第二季的 24.1%。在醫療照護人力派遣事業部中，護理旅派毛利為 650 萬，毛利率為 20.3%，相較於 2005 年第三季的 20.6% 以及 2006 年第二季的 20.7%。年減 30 個基點主要與旅派護理師的差旅費用、日支費（per diems）與醫療費用，以及勞工補償費用增加有關，但部分被較高的計費與支付毛利所抵銷。

For MF&A, gross profit was 4.3 million for the quarter. Which was a growth margin of 32.8%. Compared with 31.9 for Q3, 2005 and 31.5 for Q2, 2006. The 90 basis point increase year-over-year was primarily related to higher bill pay margins, lower appreciation and holiday pay expense, and a favorable adjustment for worker's comp expense and an increase in direct hire revenue. These favorable adjustments were partially offset by increased expenses related to higher travel and housing costs for contract professionals and payroll taxes.

MF&A 本季毛利為 430 萬。毛利率為 32.8%。相較於 2005 年第三季的 31.9% 以及 2006 年第二季的 31.5%。年增 90 個基點主要與較高的計費與支付毛利、較低的表揚與假期薪資費用、勞工補償費用的有利調整，以及直接聘僱營收增加有關。上述有利因素部分被合約專業人員較高的差旅與住宿成本，以及薪資稅增加所抵銷。

Total SG&A expense for the second quarter was 17.3 million or 22.8% of total revenues. Excluding 861,000 related to FAS 123-R expense, SG&A expense was 16.4 million or 21.7% of total revenues. For Q3, 2005, SG&A was 16.4 million or 24.8% of revenues and included 157,000 of stock based compensation expense. The sequential increase in SG&A was approximately 206,000. Excluding FAS 123-R expense. The increase includes higher than normal charges in the quarter of approximately 163,000 for professional services and staffing expenses including legal, IT and consultant and our decision to start a nurse telecruiting effort and was offset by lower marketing expenses.

第二季的SG&A總費用為1,730萬美元，約占總營收的22.8%。扣除與FAS 123-R費用相關的86.1萬美元後，SG&A費用為1,640萬美元，約占總營收的21.7%。2005年第三季，SG&A為1,640萬美元，約占營收的24.8%，其中包含15.7萬美元的股票基礎補償費用。SG&A的季增約為20.6萬美元。（不含FAS 123-R費用。）此增加包含本季約16.3萬美元高於正常水準的費用，主要為專業服務與人力配置支出（包括法律、IT與顧問），以及我們決定啟動護理師電話招募（telecruiting）計畫；部分則由較低的行銷費用所抵銷。

Depreciation expense for the quarter was 1.1 million. Compared with 1.5 million in Q3, 2005 and 1 million for Q2, 2006. Amortization expense in the quarter was 243,000 from 281,000 in the year ago period and was 237,000 for Q2, 2006. The year-over-year decrease was primarily due to the scheduled reduction amortization of our identifiable and tangible assets. On operating income was 3.5 million for the quarter compared with operating income of 1.6 million for Q3, 2005. A year-over-year improvement of 1.9 million.

本季折舊費用為110萬美元。相較於2005年第三季的150萬美元，以及2006年第二季的100萬美元。本季攤銷費用為24.3萬美元，低於去年同期的28.1萬美元，且2006年第二季為23.7萬美元。年對年下降主要是因為我們可辨認之有形資產依計畫進行攤銷的減少。本季營業利益為350萬美元，相較於2005年第三季的營業利益160萬美元。年對年改善190萬美元。

We believe it is meaningful to compare EBITDA and adjusted EBITDA when comparing the current quarter's results to prior quarters. As outlined in yesterday's press release, EBITDA for the quarter was 4.9 million. Excluding FAS 123-R expense of 861,000. Adjusted EBITDA was 5.7 million or 7.6% of revenue. Adjusted EBITDA was 3.5 million for Q3, 2005 and 4.4 million in Q2, 2006.

我們認為，在將本季結果與前幾季比較時，同時比較EBITDA與調整後EBITDA是有意義的。如同昨日新聞稿所述，本季EBITDA為490萬美元。扣除86.1萬美元的FAS 123-R費用後，調整後EBITDA為570萬美元，約占營收的7.6%。2005年第三季的調整後EBITDA為350萬美元，2006年第二季為440萬美元。

We ended the quarter with cash, cash equivalent, and restricted cash of 35.6 million up from 33.8 million from the preceding quarter. For the quarter, cash provided by operations was 2.6 million, cash provided by the net proceeds from stock transactions was 152,000 and cash used for investing activities was 1 million.

本季結束時，我們的現金、約當現金及受限制現金為3,560萬美元，高於前一季的3,380萬美元。本季營運活動提供的現金為260萬美元，股票交易淨收益提供的現金為15.2萬美元，投資活動使用的現金為100萬美元。

CapEx was approximately 800,000. Up from 658,000 in the prior quarter. Net accounts receivable were 41.3 million at the end of the third quarter, an increase of approximately 6.2 million sequentially. On a consolidated basis, DSO's were 52 days. Up from 48 days in the prior quarter. The increase in accounts receivable and DSO's is primarily attributable to the strong sequential revenue growth experienced at Nurse Travel.

資本支出（CapEx）約為80萬美元。高於前一季的65.8萬美元。第三季末淨應收帳款為4,130萬美元，季增約620萬美元。以合併基礎計算，DSO為52天。高於前一季的48天。應收帳款與DSO的增加主要歸因於Nurse Travel所經歷的強勁連續營收成長。

Now turning to productivity which we define as the quarterly gross profit generated per staffing consultant. For the third quarter, we averaged 253 staffing consultants. They each generated 82,000 of gross profit, a 7.3% sequential increase. In the previous quarter we averaged 252 staffing consultants and they each generated 76,500 in gross profit.

接著談生產力，我們將其定義為每位派遣顧問每季所創造的毛利。第三季我們平均有253位派遣顧問。每位創造8.2萬美元毛利，季增7.3%。前一季我們平均有252位派遣顧問，每位創造7.65萬美元毛利。

Each staffing consultant had an average of 15.8 contract professionals out on assignment. Up from 14.6 in the previous quarter. Lab productivity was 19.5 versus 18.1 in the previous quarter and MF&S productivity was 11.9 versus 11.1 in the previous quarter and Nurse Travel was 14.2 versus 12.7.

每位派遣顧問平均有15.8位合約專業人員在外派任中。高於前一季的14.6位。Lab生產力為19.5，相較前一季的18.1；MF&S生產力為11.9，相較前一季的11.1；Nurse Travel為14.2，相較前一季的12.7。

Now turning to guidance. For lab and MF&S, there are 61.5 billing days in the fourth quarter compared with 62.5 for Q3, 2006. For Nurse Travel, there are 92 days. Compared to 92 days in Q3 2006. Based on the strength of revenues in the first three weeks of the fourth quarter and on seasonal factors which historically have impacted the number of employees working and the number of days worked during the fourth quarter.

接著談財測指引。就lab與MF&S而言，第四季有61.5個計費日，相較2006年第三季的62.5個。就Nurse Travel而言，有92天。與2006年第三季的92天相同。基於第四季前三週營收的強勁表現，以及季節性因素（歷來會影響第四季在職員工人數與工作天數）。

We currently project revenues of 72.5 million to 74 million for the quarter ending December 31st, 2006. We are projecting consolidated gross margin of approximately 26.3% to 26.5%. Which includes the impact of higher holiday and incentive pay for travelling nurses and SG&A of 16.4 to 16.7 million.

我們目前預估截至2006年12月31日止之季度營收為7,250萬至7,400萬美元。我們預估合併毛利率約為26.3%至26.5%。其中包含因流動護理師較高的假日與獎勵薪資所帶來的影響，以及SG&A為1,640萬至1,670萬美元。

Including depreciation and amortization of 1.4 million and excluding approximately 820,000 of FAS 123-R expense. We project earnings per share of $0.04 to $0.07 which includes FAS 123-R expense of approximately $0.02 per share and an effective tax rate of 30%.

包含折舊與攤銷140萬美元，並排除約82萬美元的FAS 123-R費用。我們預估每股盈餘為0.04至0.07美元，其中包含約每股0.02美元的FAS 123-R費用，以及30%的有效稅率。

Our quarterly guidance as discussed and full year guidance as follows. Excludes the potential positive impact of a full or partial reversal of the $4.9 million evaluation allowance we have recorded against our net deferred tax assets. Based on the fourth quarter guidance and assuming fairly stable labor markets and no loss of major clients at Nurse Travel, we are raising our guidance for revenues to 283.5 million to 285 million from 279 million to 282 million.

我們的季度指引如前所述，全年指引如下。不包含我們針對遞延所得稅資產淨額所認列之490萬美元評價備抵（valuation allowance）全部或部分回轉可能帶來的正面影響。基於第四季指引，並假設勞動市場相對穩定且Nurse Travel未流失主要客戶，我們將營收指引自2.79億至2.82億美元上調至2.835億至2.85億美元。

Which represents growth of 19.2% to 19.8% over 2005. We are projecting average gross margin for the year of approximately 26.8% to 26.9%. SG&A, 65.3 million to 65.5 million excluding approximately 2.7 million in FAS 123-R expense. And raising our earnings per share guidance to $0.22 to $0.25 from $0.21 to $0.24. Which includes approximately $0.08 per share in FAS 123-R expense.

這代表相較2005年成長19.2%至19.8%。我們預估全年平均毛利率約為26.8%至26.9%。SG&A為6,530萬至6,550萬美元，排除約270萬美元的FAS 123-R費用。並將每股盈餘指引自0.21至0.24美元上調至0.22至0.25美元。其中包含約每股0.08美元的FAS 123-R費用。

As you know, these estimates are subject to the risks mentioned in yesterday's release and at the beginning of the conference call. Now back to Pete for some closing comments before we open up the lines for questions.

如各位所知，這些估計值仍受昨日新聞稿及電話會議開場提及之風險影響。接下來交回給Pete，在我們開放提問前做一些結語。

Thanks, Kristi. On Assignment's growth opportunities still are largely dependant on our own internal execution and not on any improvement in the end markets we serve. This quarter's performance continues to substantiate the strength of our diversified business model and is a result of the operational and management changes we have taken over the last 33 months.

謝謝你，Kristi。On Assignment的成長機會仍主要取決於我們自身的內部執行，而非我們所服務終端市場的任何改善。本季表現持續證實我們多元化商業模式的強韌性，並且是我們在過去33個月所採取的營運與管理變革所帶來的成果。

I would like to once again thank our many loyal, dedicated, and talented employees whose efforts have allowed us to progress where we are today. I would like to now open up the call to participants for questions. Operator?

我想再次感謝我們眾多忠誠、敬業且才華洋溢的員工，他們的努力讓我們得以走到今天的進展。我現在想開放電話會議讓與會者提問。接線員？

[OPERATOR INSTRUCTIONS] Your first question is from the line of Jim Janesky with Ryan Beck.

[接線員指示] 第一個問題來自Ryan Beck的Jim Janesky。

Hi. Yes, good morning. I have a couple of questions. The first one is for Emmett. Emmett, Shawn gave the metrics in the first three weeks for Nurse and MF&A. Can you give us those for lab?

嗨。是的，早安。我有幾個問題。第一個是問Emmett的。Emmett，Shawn提供了Nurse與MF&A在前三週的指標數據。你能提供lab的數據嗎？

Let me see if we have it on the spread sheet, Jim. One second.

我看看試算表上是否有，Jim。稍等一下。

I will move on to.

我接著往下說。

We can pull it up; we're just opening a spread sheet. We will get that for you.

我們可以把它調出來；我們只是正在打開一個試算表。我們會把那個提供給您。

Yes, no problem. When you look at the end of the year, we talked about in the past, and you have talked about it on the call of course. How, let's say the last couple of weeks of the year, it is dependent upon, possible facility shut downs within the Lab Support area and then number of nurses of course. On assignment.

是的，沒問題。當你看年末時，我們過去談過，當然你也在電話會議上談過。比如說，年末最後幾週，這取決於實驗室支援（Lab Support）領域可能的設施停工，然後當然也取決於護理人員的人數。在派遣中。

Can you look at this versus last---- this year versus last year. What happened last year and is there anything different this year that would lead to some type of surprise in the last. On either side. In the last two weeks of the year.

你能把今年和去年做個比較嗎——今年對比去年。去年發生了什麼？今年是否有任何不同之處，可能會在最後——不論正面或負面——在年末最後兩週帶來某種意外。

Yes, I mean. Jim, what I would share with you historically. We have kind of been down 3% to 5%. Sometimes the strength of the market can offset that somewhat but it is just impossible. After kind of December 14th. To really have clear visibility. That I am comfortable in providing you. Any greater granularity of detail than we did in our revised guidance.

是的，我的意思是。Jim，我可以跟你分享的是，從歷史上看。我們大概會下滑 3% 到 5%。有時市場的強勁可以在某種程度上抵消，但就是不可能。在大約 12 月 14 日之後。真正有清楚的能見度。讓我有把握提供給你。比我們在修訂後指引中所提供的更細的細節。

I can't tell you whether one of the major biotech customers has had a particularly good quarter and they go ahead and take a couple extra days to close down the research and development facilities. This is not a metric we publish on a regular basis. But to give you an order of magnitude on the scientific side, if one of our biotech companies decides they will close from December 24th to January 2nd, and that is five billable days and we have ten people there.

我無法告訴你，某個主要生技客戶是否剛好有一個特別好的季度，然後他們就多放幾天假，把研發設施關閉。這不是我們定期公布的指標。但給你一個科學端的量級概念：如果我們某家生技公司決定從 12 月 24 日關到 1 月 2 日，這是 5 個可計費日，而我們那邊有 10 個人。

That is 50 lost billable days at one customer, because we have 5----10 people and lost five days. On the nursing side, it can impact our demand two ways, one nurses will say, I am not going to travel until after the holidays, that way I don't have to worry about being away from my home or they can accept the assignment and it is a challenge to persuade them to be on assignment during that week.

那就是單一客戶損失 50 個可計費日，因為我們有 5——10 個人，少了 5 天。在護理端，它可能以兩種方式影響我們的需求：第一，護理人員會說，我要等假期後才出差，這樣我就不用擔心離開家；或者他們可以接受派遣，但要說服他們在那一週出勤派遣會很有挑戰。

So, I know where you are going. I guess what I am saying. We gave you what we are currently doing. Excluding normal seasonality. We haven't seen change in demand. And this is just a normal historical event that occurs in our business and other people who sell the services we do. But you should take solace in the fact that the first couple of the weeks of the fourth quarter continue to strengthen.

所以，我知道你想問什麼。我想我在說的是。我們已經把我們目前正在做的告訴你了。排除正常季節性因素。我們沒有看到需求有變化。而這只是我們業務以及其他提供我們這類服務的公司都會發生的正常歷史事件。但你可以放心的是，第四季前幾週仍在持續走強。

Okay.

好的。

Emmett, you want to give him the numbers.

Emmett，你要把數字給他嗎？

Morning, Jim. Early into the fourth quarter--- Here are numbers on revenue 2.4 million. And on clients, I believe it is 1313. 1,013 clients and number of professionals is up to 2200. We are reaching new year highs in the fourth quarter and we are really doing very positive feeling about the early trends in the fourth quarter.

早安，Jim。第四季剛開始——這裡有一些數字：營收 240 萬。客戶數我相信是 1313，不，是 1,013 位客戶；專業人員人數上升到 2,200。我們在第四季達到年度新高，我們對第四季初期的趨勢感到非常正面。

Now the 2.4 million. That is up versus last year.

那 240 萬。這比去年高。

Yes.

是的。

Okay. Great. Switching to the nursing side. Shawn. What have you heard in the market about hospital admission rates and the use of contract labor at hospitals versus just gaining market share. Are you hearing anything positive or negative about the other two metrics.

好的。很好。轉到護理端。Shawn。你在市場上聽到關於醫院收治率（admission rates）以及醫院使用合約勞動力的情況如何？相較於只是市占率提升。你對另外兩個指標有聽到任何正面或負面的消息嗎？

We have really been seeing a stabilization in that right now, Jim. And I have not necessarily seen positive or negative movement with regards to hospital admission rates at this time. Our focus, from an operational standpoint, is to really go out there and continue to execute well and drive market share. Knowing there is an upside opportunity with many states looking at passing continued nurse to patient ratios.

Jim，我們目前確實看到那方面趨於穩定。就醫院收治率而言，我此刻沒有看到明顯的正向或負向變動。從營運角度，我們的重點是走出去、持續把執行做好並推動市占率。也知道有上行機會，因為許多州正在考慮通過持續的護理人員對病患比例規定。

I would just add, Jim, that as we have said consistently. We are continuing to have ample room to grow, despite the fact that patient admissions and [inaudible] tends to be lumpy and floppy right now and we haven't gotten the kick in, like you saw in 2001 and 02, where there was this insatiable demand for services and increase in admissions.

Jim，我再補充一下，正如我們一直說的。即使病患收治與[聽不清]目前呈現忽高忽低、起伏不定，我們仍然有很大的成長空間，而且我們還沒有看到像 2001、2002 年那樣的爆發——當時對服務的需求近乎無止境，收治量也增加。

We are getting this 20% year over year growth of off sloppy admissions. Because the number 1 factor is the nurses are getting older, the supply and demand is getting further out of balance, and management and human capital is a difficult job and the hospitals have had a challenging run of it with the nurses, so we think can grow, even as the environment of sloppy admissions continues.

在收治波動的情況下，我們仍然取得年增 20% 的成長。因為第一大因素是護理人員年齡愈來愈大，供需失衡進一步擴大；而管理與人力資本是一項困難的工作，醫院在護理人員方面也經歷了一段艱難時期，所以我們認為即使收治波動的環境持續，我們仍能成長。

Okay. Thank you.

好的。謝謝。

Your next question comes from the line of Tobey Sommer with SunTrust Robinson Humphrey.

下一個問題來自 SunTrust Robinson Humphrey 的 Tobey Sommer。

Thanks. You started off with the last set of questions talking about seasonality. I was wondering if you can refresh us on seasonality from fourth quarter to first quarter.

謝謝。你在上一輪問題一開始談到季節性。我想請你幫我們回顧一下從第四季到第一季的季節性。

Yes, sir. Good morning, Toby. For those investors who haven't heard this before, our strength of quarters. Seasonality effect on quarters. Third quarter is typically the strongest because of buying behavior. Number of billable days. Holidays, etcetera, followed by the second quarter being the next strongest quarter. The fourth tends to be the second most impacted quarter and then the first is the most impacted quarter. Meaning the most seasonally affected.

好的，先生。早安，Toby。對於之前沒聽過的投資人，我們各季度的強弱。季度的季節性影響。第三季通常最強，因為採購行為。可計費天數。假期等等，其次是第二季為第二強。第四季通常是受影響第二大的季度，而第一季受影響最大。也就是季節性影響最明顯。

Typically what we will see is continued strength and growth of the revenues, gross profit, head count through December 14th and then we will see a plateau or a little bit of attrition and then it takes sometimes February or towards the end of February, beginning of March to ramp back up. To our kind of pre-December 14th highs. Depending on the strength of the market, as you saw from the performance last year, we had a pretty good early run of it.

一般來說，我們會看到營收、毛利、人頭數在 12 月 14 日之前持續走強並成長，之後會出現持平或些微流失，然後有時要到 2 月或接近 2 月底、3 月初才會再度爬升。回到我們大約 12 月 14 日之前的高點。視市場強度而定；就像你從去年表現看到的，我們在年初有一段相當不錯的走勢。

It is just too hard to predict right now. We haven't seen what is going to happen post December 14th. But out, our fourth quarter guidance takes into consideration our best view right now. What the seasonality impact will be.

現在要預測真的太難了。我們還沒看到 12 月 14 日之後會發生什麼。但我們的第四季指引已納入我們目前最佳的判斷。季節性影響會是什麼。

I was wondering if you could comment about orders. You mentioned in the prepared remarks that orders. Continue to be pretty solid and wondering if you can describe any color on either the duration of the orders that you are receiving. Whether it is slightly longer or shorter assignments, any variation there. As well as if you are getting any further visibility of people placing orders further ahead than they used to at this particular time, or is it kind of consistent with historical patterns.

我想請你評論一下訂單。你在事先準備的講稿中提到訂單。仍然相當穩健，想請你補充一些細節，例如你們收到的訂單期間長短。是否是稍長或稍短的派遣案，有沒有任何變化。以及你們是否看到有人比以往更早下單、能見度更往前延伸，還是大致符合歷史模式。

Most of the business is not generic or commoditized, so and people aren't ramping up for the flu season or anything like that. We continue to live in an environment where it is candidate constraint versus order constraint. And I have not been a big disciple of quoting open orders. Because everybody scrubs their order list differently. You heard me give this example. If a hospital in Massachusetts asked for a 36 year old nurse who speaks 17 different languages and is willing to work for $10.50. Is that a real order? And had 20 years of cardiac ICU experience. Is that a real order or not?

大多數業務並非通用化或商品化，因此人們也不會像為流感季之類的事情那樣加速增員。我們仍然處在一個「候選人受限」而非「訂單受限」的環境。而且我一向不是很贊成引用未結訂單數。因為每家公司清理（scrub）訂單清單的方式都不一樣。你們聽過我舉這個例子。如果麻薩諸塞州的一家醫院提出需求：要一位36歲、會17種語言、且願意以10.50美元工作的一名護理師。那算是真實的訂單嗎？而且還要有20年心臟加護病房（ICU）經驗。那到底算不算真實的訂單？

What I can tell you is our orders are at highs. We have more inbound calls coming in with people who are pretty challenged with regard to filling their need. They've really over worked their internal staff and turning to them to overtime--- their staff are throwing their hands up and it continues to be a---the key driver is fulfillment versus orders. So, I mean, we don't quote, we had 10,000 open orders in the second quarter and we had 12,500 in the third.

我能告訴你的是，我們的訂單量處於高點。我們接到更多主動來電，對方在滿足人力需求方面相當吃緊。他們確實把內部員工操得很累，轉而依賴加班——他們的員工都快受不了了，而關鍵驅動因素仍然是「履約/派遣到位」而不是「訂單量」。所以，我的意思是，我們不會去報說第二季有10,000筆未結訂單、第三季有12,500筆。

Fair enough. Looking at the productivity. It seems like you made some very good improvement both on aggregate basis as well as on the segment basis. I was wondering if you could give us a little bit more color on your telerecruiting effort; exactly what that is and if you had any early signs of impact on your productivity.

了解。看一下生產力表現。看起來你們無論在整體層面或分部層面都做出了相當不錯的改善。我想請你們多談一點你們的遠端招募（telerecruiting）工作；那到底是什麼，以及是否已經看到對生產力的早期影響跡象。

I am going to say 30 words on it and turn it over to Shawn. That was kind of a pre-qualified some nurses so we can further accentuate the effectiveness of our higher paid seasoned nurse recruiters. But Shawn tell them what you are trying to accomplish with that.

我先用30個字講一下，然後交給Shawn。這基本上是先預先篩選一些護理師，讓我們能進一步強化那些薪資較高、資深護理師招募員的效率。不過Shawn，你跟他們說說你想透過這個達成什麼。

Hi, Toby. This is Shawn. Early on, our goal right now is to just to go through as many opportunities and find as many potential qualified nurse who want to expand and move into the Nurse Travel pool. So our goal is to identify these individuals and determine whether or not they're qualified for what we're looking for to enter a pool and a travel environment which they may not have done before. We are really working hard to try to expand the existing nurse pool we have and place more qualified nurses and the disciplines we have into the market space.

嗨，Toby。我是Shawn。在初期，我們目前的目標就是盡可能接觸更多機會，找出更多有潛力、符合資格、且願意擴展並加入「旅行護理師（Nurse Travel）」人才庫的護理師。所以我們的目標是辨識這些人，並判斷他們是否符合我們要他們進入人才庫、進入他們可能以前沒做過的旅行派遣環境所需的條件。我們非常努力想擴大現有的護理師人才庫，並把更多合格護理師、以及我們所涵蓋的各專科領域，投放到市場上。

And the seasoned recruiter will follow up on what is considered a legitimate lead.

而資深招募員會針對被視為有效線索的部分再進一步跟進。

I will ask one last question and get back in the queue. Looking at your offices and your resources, I think couple of quarters ago, you said maybe, you had some officers--offices that were less or more productive than others. Are you happy with the distribution of the resources? Where they are allocated and where they are working and respective markets of where they operate.

我再問最後一個問題，然後回到隊列。看你們的辦公室與資源配置，我記得幾季前你們提到，可能有些辦公室的生產力比其他辦公室高或低。你們對目前資源分布滿意嗎？也就是資源配置在哪裡、在哪些市場運作，以及各自所服務的市場。

I would tell you, which is kind of unique. All of our markets are doing pretty well. And some of the larger metropolitan markets that when we first started this journey. We were talking about. Hadn't turned on as much as we wanted and had real successes and the health care office in Houston has quadrupled in the last six months, and we are happy with the distribution.

我會告訴你，這點有點特別。我們所有市場的表現都相當不錯。而且一些較大的都會市場——在我們剛開始這段旅程時，我們曾經談到過——當時啟動的程度沒有我們希望的那麼快；但現在已經有很實質的成果，例如休士頓的醫療保健辦公室在過去六個月成長了四倍，我們對資源分布是滿意的。

It is not that we have 60 offices and 40 are carrying the entire Company and 20 are dragging. We have some challenges in certain market places and I would tell you all in all. Most of the offices are productive and profitable.

並不是說我們有60個辦公室，其中40個扛起整家公司、另外20個在拖累。我們在某些市場確實有一些挑戰，但整體而言，大多數辦公室都具生產力且有獲利。

Thank you very much.

非常感謝。

[OPERATOR INSTRUCTIONS] Your next question comes from the line of Jeff Silber with BMO Capital Markets.

[OPERATOR INSTRUCTIONS] 下一個問題來自BMO Capital Markets的Jeff Silber。

Thanks so much. Just wanted to get a little bit more color on the seasonality question Toby asked. The general trends that you described, do those hold for all the major business segments you are in?

非常感謝。我想就Toby問的季節性問題再多了解一些細節。你剛才描述的整體趨勢，是否適用於你們所處的所有主要業務分部？

To a lesser degree on MF&A and where we really get impacted on MF&A is if we have people in a physician's group and the most accentuated pronounced effect is first in Nurse Travel and then Lab Support.

在MF&A上的影響程度較小；而MF&A真正受到影響的情況，是當我們有人員在醫師團體（physician's group）裡時。最明顯、最突出的影響首先出現在旅行護理（Nurse Travel），其次是實驗室支援（Lab Support）。

Okay. Great. Now, you had mentioned in your prepared remarks, Peter, that you reached your longer term EBITDA margin goals much quicker than expected. Are you setting the bar higher going forward? What kind of long term EBITDA margin goals should we be looking for?

好的。了解。Peter，你在事先準備的發言中提到，你們達成長期EBITDA利潤率目標的速度比預期快很多。接下來你們會把門檻再拉高嗎？我們應該期待你們長期EBITDA利潤率目標落在什麼水準？

Jeff, you have been on the road with me. What I consistently say is I am going to give you. What is at the upper end of professional/health care companies can do on a gross margin basis, on a revenue growth basis, on an EBITDA basis and if you can run it through your model and if you like it, then we have got a good stop.

Jeff，你跟我一起跑過路演。我一貫的說法是：我會給你一個在專業服務/醫療保健公司中，在毛利率、營收成長、以及EBITDA方面所能做到的上緣水準。你把它放進模型裡跑一跑，如果你覺得可以，那我們就有一個很好的基準。

If we can do better, we are going to report it. But I am not going to---I am not going to raise it at this point unless----something changes. I feel very comfortable about the sustainability of the business. But we gave a goal of 7%. And we are going to see what we can do to improve on that.

如果我們能做得更好，我們就會如實報告。但我不會——我目前不會把目標往上調，除非——有些事情發生變化。我對這門生意的可持續性非常有信心。不過我們給的目標是7%。我們會看看能做些什麼來在此基礎上再提升。

We feel we still have a fair amount of operating leverage, specifically with leveraging the back office. But right now, I think the numbers we are posting, especially considering that the deminimus amount of contribution from direct hire, it is more than enough to distinguish ourselves from the other staffing companies.

我們認為仍然有相當程度的營運槓桿空間，特別是在後台（back office）的槓桿化方面。但就目前而言，我認為我們所呈現的數字——尤其是在直接招募（direct hire）貢獻極小的情況下——已經足以讓我們在其他人力派遣公司中脫穎而出。

Also, to follow up on some of your prepared remarks about acquisitions, any more color you can give in terms of what the market is like for acquisitions and what type of things you are looking at etcetera.

另外，延續你在併購方面的事先發言，你能否再多分享一些：併購市場目前的狀況如何、你們在看哪些類型的標的等等。

You followed me in my prior company. I have done 85 deals in the staffing industry and they were all accreted and you haven't heard me speak of acquisitions prior to now. We wanted to get acquisition ready. We wanted to make sure that we could leverage the back office by having the front end systems and back end systems operating smoothly. That's happening; we've got all of our businesses growing and we are seeing that there is a wave of consolidation that is occurring.

你以前在我上一家公司時就一路關注我。我在人力派遣產業做過85筆交易，而且全部都是增益性的（accretive），但在此之前你並沒有聽我談過併購。我們想先把自己準備到「可併購」的狀態。我們要確保前端系統與後端系統運作順暢，讓我們能夠槓桿化後台。這正在發生；我們所有業務都在成長，而且我們看到產業正在出現一波整併潮。

And we are seeing productive activities across the gambit. Whether it is buying branch offices where we are under performed and we can put them on the pay bill system and train the recruiters quickly on the programs and approach to the market place. As well as some larger companies that have a new health care service offering or a new offering. The----as you know from the universe of publicly traded health care staffing firms, there is not a lot of product out there in health care services, but we are seeing some attractive opportunities and had some preliminary conversations in that space.

而且我們看到各個面向都有具生產力的活動。不論是收購我們表現較弱的分公司據點，然後把它們導入薪資發放（pay bill）系統，並快速訓練招募員熟悉我們的方案與市場切入方式。也包括一些較大型的公司，它們可能有新的醫療保健服務項目或新的產品/服務。——如你所知，在公開交易的醫療保健人力派遣公司範圍內，醫療保健服務領域可供選擇的標的並不多，但我們確實看到一些具吸引力的機會，也在該領域進行了一些初步對話。

In the broader market, whether it is engineering, clinical research or other disciplines, this industry continues to be highly fragmented and our job is to to find a business that has a similar delivery model and similar back office model as ours in culturally something that will cohabitate and harmoniously core exist with our core offering. And we will support all of our existing offerings and I can't predict when. But I feel pretty good about the preliminary work we have done in the prospects of the nice accretive acquisition on a go forward basis.

在更廣泛的市場中，不論是工程、臨床研究或其他專業領域，這個產業仍然高度分散；而我們的工作是找到一個在交付模式與後台模式上與我們相近、在文化上也能共處，並能與我們核心產品/服務和諧共存的企業。我們也會支持我們所有既有的產品/服務，我無法預測時間點。但我對我們已完成的前期工作，以及未來能做出一筆漂亮、具增益性的併購的前景，感覺相當不錯。

Thanks so much.

非常感謝。

Your next question comes from [Bruce Ackerman] with Sandhill Equity Research.

下一個問題來自 Sandhill Equity Research 的 [Bruce Ackerman]。

Good morning, gentlemen. Congratulations on an outstanding quarter.

早安，各位先生。恭喜你們交出一個非常出色的季度成績。

Thank you.

謝謝。

I had two questions. The first question concern travel nursing. Over time. You had mentioned that in an earlier presentation. That in general, your nurses were working 46 hours a week and my question is, is that still the case and are those nurses paid time and a half so they are overtime and are you able to bill premium time to the hospitals.

我有兩個問題。第一個問題與旅行護理（travel nursing）有關。長期來看。你們曾在先前的簡報中提到。一般而言，你們的護理人員每週工作 46 小時；我的問題是，現在仍然如此嗎？這些護理人員是否以 1.5 倍計薪，因此屬於加班？以及你們是否能向醫院收取加班的加價時數費率？

Yes a couple of things. Our nurses continue to contract to work 48 hours and we do pay them over time and what we charge the hospital we haven't disclosed but we factor in the added cost.

是的，有幾點。我們的護理人員仍然以合約方式工作 48 小時，我們也會支付他們加班費；至於我們向醫院收取的費率我們沒有揭露，但我們會把增加的成本納入考量。

Okay. Good. Thank you for that. In your inoffice staff, your staffing coordinators on the travel nurse side, are they paid time and a half for any over time?

好的。很好。謝謝你的說明。在你們的內勤人員方面，也就是旅行護理端的派遣協調員（staffing coordinators），他們的任何加班也會以 1.5 倍計薪嗎？

We don't disclose that information. But all I can share with you is we comply with all the state and federal pay statutes.

我們不揭露那項資訊。但我能分享的是，我們遵循所有州與聯邦的薪資法規。

Okay. Good enough. I only ask because there has been some litigation in that area. So thank you for your information there.

好的。這樣就夠了。我之所以問，是因為那個領域曾有一些訴訟。所以謝謝你在這方面提供的資訊。

No, I will tell you almost a year and a half ago, someone had brought a claim and---against us and it was dismissed. Because we were able to substantiate that we are performing properly.

不，我可以告訴你，大約一年半前，有人對我們提出主張——但該案已被駁回。

Thank you.

謝謝。

Your next question is a follow up question from the line of Tobey Sommer from SunTrust Robinson Humphrey.

下一個問題是 SunTrust Robinson Humphrey 的 Tobey Sommer 來電的追問。

Thanks. I was wondering if you could give us an update as to the percentage of your cost structure that is fixed versus variable at this point, just want to kind of refresh our memory as to the leveragability of the fixed cost base.

謝謝。我想請你們更新一下，目前你們成本結構中固定成本與變動成本各占多少比例？我只是想重新確認一下固定成本基礎的槓桿效應（leveragability）。

Well, the true fixed cost is the branched office network [lease hold payments] that we can't terminate quickly. And then the back office people soft IT, pay bill functions and then I refer to what I call semi-fixed cost which is the core recruiting sales infrastructure and that is a little more variable. God forbid if we had a nuclear winter. There could be some changes in that.

嗯，真正的固定成本是分支辦公室網絡的[租賃付款]，我們無法快速終止。然後是後勤人員、軟體 IT、薪資與帳單處理等職能；接著我會提到我所稱的半固定成本，也就是核心招募與銷售基礎設施，這部分比較具有變動性。但願不要發生所謂的核子寒冬。那麼在那種情況下，這部分可能會有一些調整。

Toby, as you know from visiting with me. I continue. I always say publicly that we think that a 20% SG&A is our target and 13 to 16 points of that SG&A should be spent in the field and somewhere between 3 and 5 points should be spent at corporate. If revenues were to flatten or go down, then commissions would drop. That's a variable expense as you know. So, it is still. The beauty of these businesses and the reason they generate cash is that they are not a high fixed cost business.

Toby，如同你來訪與我交流時所了解的。我繼續說。我一直在公開場合表示，我們認為 SG&A 以 20% 為目標，其中 13 到 16 個百分點應投入在前線（field），而公司端（corporate）應在 3 到 5 個百分點之間。如果營收持平或下滑，那麼佣金就會下降。如你所知，那是變動費用。所以，仍然是如此。這些業務的優勢、也是它們能產生現金的原因，在於它們不是高固定成本的生意。

And as you are seeing, our CapEx doesn't have to go up for us to do the growth we do. We said we have grown $100 million cumulatively since the first quarter of '05 in the average quarterly SG&A has gone up less than $300,000 and that is taking into consideration increased commissions. This still is a highly leverageable business and we still have a lot of variability on the variable cost side.

而且如你所見，我們的資本支出（CapEx）不必增加，也能支撐我們目前的成長。我們說過，自 2005 年第一季以來，我們累計成長了 1 億美元，而平均每季 SG&A 增加不到 30 萬美元，這還已經把佣金增加的因素納入考量。這仍然是一門高度可槓桿化的業務，而且在變動成本端我們仍有很大的彈性。

Thanks. You do describe a little bit of a supply----challenge. Environment to getting growth in the business although you are growing it very nicely, so I don't mean to imply overly challenged. But I was just curious in terms of---you hire in recruiters. What is that market like? Is that something where you have a decent supply of candidates to choose from and interview.

謝謝。你們確實描述了一些供給面的——挑戰。雖然你們的業務成長得很好，所以我不是要暗示挑戰非常嚴峻。但我只是好奇，就——你們會聘用招募人員。那個市場狀況如何？你們是否有相當充足的候選人供你們挑選與面試？

Yes, we have been fortunate because of the track, actually let me break it down. On the Lab Support side. Because we have actually been taking market share and it is undeniable. We may have tripped as far as our reputation goes on Wall Street. But we never really did that on Main Street. We have seen a huge inflow of people who are prepared to work for Lab Support because of the culture. Because these people are point operated and we don't discount and they can make a higher living in an elegant environment of 33% gross margin business. Than some of the bulk sellers.

是的，我們一直很幸運，因為我們的軌跡——其實讓我拆開來說。在 Lab Support 這一端。因為我們確實在取得市占率，這點無可否認。我們在華爾街的聲譽可能曾經絆了一下。但在主街（Main Street）我們從未真正如此。我們看到大量人才流入，願意為 Lab Support 工作，因為我們的文化。因為這些人是以點（point）運作的，我們不打折，他們可以在一個毛利率 33% 的優雅環境中賺到更高的收入。相較於一些大量販售者（bulk sellers）。

We are taking market share and we're also seeing people who want to work for us. On a nurse trave side---most of that is home grown. We have a farm lake, Toby. We have our core nucleus of very talented recruiters, and when they get to a certain level of productivity we attache a recruiter tact that works for them. The recruiter tact is shadowing that person and taking care of the noncritical administrative functions and learning the business to make the higher paid recruiter more profitable and when that recruiter tract has had a number of months, year of shadowing.

我們正在取得市占率，也同時看到有人想來我們這裡工作。在旅行護理（nurse travel）這一端——大多是內部培養。Toby，我們有一個人才培育池。我們有一個非常有才華的核心招募團隊，當他們達到一定的生產力水準時，我們會為他們配置一位招募助理（recruiter tact）。這位招募助理會跟隨該招募員，處理非關鍵的行政工作，同時學習業務，讓高薪的招募員更具獲利能力；而當這位招募助理跟隨學習了數個月、甚至一年之後。

We will turn them into a full time recruiter. We don't do as much hiring outside the industry or within the industry on the Nurse Travel side as we do in Lab Support and MF&A. MF&S I would say is probably the market police where we have the most powering that comes from within the industry.

我們會把他們轉為全職招募員。在旅行護理端，我們不像在 Lab Support 與 MF&A 那樣大量從業外或業內對外招募。至於 MF&S，我會說那大概是我們最主要從業內挖角、獲得最多動能的市場。

So, we have actually seen continued ample pool of very qualified applicants. So we feel pretty good about our access right now and our turnover has been--- industry leading. I think last time we quoted it. I don't know if it is updated. As of the second quarter, year to date it was less than 38% turnover, voluntary and involuntary.

因此，我們確實持續看到相當充足、且非常合格的應徵者來源。所以我們對目前的人才取得管道感到相當有信心，而我們的離職率一直是——領先同業。我記得上次我們引用的數字。我不確定是否已更新。截至第二季，年初至今的離職率（自願與非自願）低於 38%。

Thank you very much.

非常感謝。

Yes.

是的。

At this time there are no further questions. Any closing remarks?

目前沒有其他問題。請問有任何結語嗎？

I just want to thank everyone for attending our call and look forward to reporting our fourth quarter results. Thank you very much for your attendance.

我只想感謝各位參加我們的電話會議，也期待向各位報告我們第四季的業績結果。非常感謝各位的出席。

Ladies and gentleman, this does conclude the On Assignment third quarter 2006 earnings release conference call. You may now disconnect.

各位女士、先生，On Assignment 2006 年第三季財報發布電話會議到此結束。您現在可以掛線。