Everforth, Inc. (EFOR) 2006 Q4 法說會逐字稿

Good morning. My name is Janice, and I will be your conference operator today. At this time, I would like to welcome everyone to the fourth quarter 2006 earnings release conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [OPERATOR INSTRUCTIONS] Thank you.

早安。我叫 Janice，今天將擔任各位的電話會議接線員。此刻，我謹代表公司歡迎各位參加 2006 年第四季財報發布電話會議。為避免任何背景雜音，所有線路均已設為靜音。在講者致詞結束後，將進行問答環節。[接線員指示] 謝謝。

Mr. Brill, you may begin your conference.

Brill 先生，您可以開始主持會議。

Good morning, everyone. Before we begin, I'd like to remind everyone, as we do each quarter, that our presentation contains predictions, estimates, and other forward-looking statements representing our current judgment on what the future holds. These include words such as forecast, estimate, project, expect, believe, and similar expressions. 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 these 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, will now provide an overview of our fourth quarter results. Peter?

各位早安。在開始之前，我想如同每一季一樣提醒各位，我們的簡報包含預測、估計及其他前瞻性陳述，代表我們目前對未來情勢的判斷。其中包括如 forecast（預測）、estimate（估計）、project（推估）、expect（預期）、believe（相信）及類似用語。我們認為這些說法屬合理，但仍受風險與不確定性影響，可能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。接下來將由我們的執行長兼總裁 Peter Dameris 概述第四季業績。Peter？

Thank you, Jim. Good morning, everyone. With me today are Emmett McGrath, President of Lab Support; Shawn Mohr, President of Healthcare Staffing; and Jim Brill, Senior Vice President and Chief Financial Officer. 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 their respective presidents. I will then turn the call over to Jim for a more detailed review and discussion of our fourth quarter financial performance and our financial guidance for the first quarter of 2007 and the full year. We'll then open the call up for questions. All results discussed on today's call exclude any contribution from the recently completed Vista and Oxford acquisitions.

謝謝你，Jim。各位早安。今天與我一同出席的有：Lab Support 總裁 Emmett McGrath；Healthcare Staffing 總裁 Shawn Mohr；以及資深副總裁兼財務長 Jim Brill。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其各自營運部門的表現。之後我會把電話交給 Jim，由他更深入檢視並討論第四季財務表現，以及我們對 2007 年第一季與全年之財務指引。接著我們將開放提問。今天電話會議中討論的所有結果，均不包含近期完成之 Vista 與 Oxford 併購案的任何貢獻。

This quarter's performance again resulted in record revenues for our Company. Revenues were $76.5 million for the quarter and $287.6 million for the full year. Revenues grew 20.9% in 2006 over 2005, and 18.3% in the fourth quarter of '06 over the fourth quarter of '05. Our growth in revenues this year exceeded our original 2006 full-year guidance by almost $20 million. Earnings per share was $0.20 for the quarter and $0.39 for the full year. Our fourth quarter net income was positively impacted by the full reversal of the remaining valuation allowance on a historical deferred tax assets. The reversal was predicated on the continued profitability of the Company and resulted in a net tax benefit of $3 million or $0.10 a share. Excluding this reversal, our earnings per share were $0.10 in the fourth quarter and $0.29 for the full year. Again, excluding the impact of the tax valuation reversal, operating income and EPS grew 385% and 233% respectively year-over-year, and all divisions contributed to our strong reported results.

本季表現再次為本公司帶來創紀錄的營收。本季營收為 7,650 萬美元，全年營收為 2 億 8,760 萬美元。2006 年營收較 2005 年成長 20.9%，而 2006 年第四季較 2005 年第四季成長 18.3%。今年營收成長較我們原先 2006 年全年指引高出近 2,000 萬美元。本季每股盈餘為 0.20 美元，全年每股盈餘為 0.39 美元。第四季淨利因將歷史遞延所得稅資產剩餘之估值備抵（valuation allowance）全數回轉而受到正面影響。此回轉係基於公司持續獲利，並帶來 300 萬美元（或每股 0.10 美元）的淨稅務利益。若排除此回轉影響，第四季每股盈餘為 0.10 美元，全年為 0.29 美元。同樣地，若排除稅務估值回轉的影響，營業利益與每股盈餘分別年增 385% 與 233%，且所有事業部均對我們強勁的已報告結果有所貢獻。

Consolidated gross margins in the fourth quarter were 27.2% and 21.1% for the full year. This quarter's gross margin represented a 94 basis point improvement year-over-year and a 49 basis point increase for the full year of '06 over '05. As many of you are aware, there are fewer billable days and more holidays in the fourth quarter than in the third quarter, and the fewer billable days and extra holiday pay affect our gross margins and revenues. Despite these seasonal factors we were able to grow our revenues sequentially over the last 90 days. Gross margins expanded year-over-year in both of our segments. Our consolidated hourly bill pay spreads also increased year-over-year. Operating income for the quarter was $3.6 million, which included $1.1 million of equity-based compensation expense, and was up $2.9 million from the year-ago period. For those investors who have followed our Company over the years, our ability to grow our fourth quarter revenues and EBITDA over the third quarter is evidence of the strength of our business model and the end markets we serve.

第四季合併毛利率為 27.2%，全年為 21.1%。本季毛利率較去年同期提升 94 個基點，2006 年全年較 2005 年增加 49 個基點。如各位所知，第四季相較第三季可計費天數較少且假期較多；可計費天數減少與額外的假期薪資會影響我們的毛利率與營收。儘管有這些季節性因素，我們仍能在過去 90 天內使營收呈現季增。我們兩大事業部的毛利率皆較去年同期擴張。我們合併的每小時計費與支付價差（hourly bill pay spreads）亦較去年同期提高。本季營業利益為 360 萬美元，其中包含 110 萬美元的股權基礎薪酬費用，較去年同期增加 290 萬美元。對多年來持續關注本公司的投資人而言，我們第四季營收與 EBITDA 能較第三季成長，證明了我們商業模式與所服務終端市場的強勁。

Exiting the quarter, demand for our services continue to be strong for all of our divisions. Our pro forma weekly revenues, which now include the revenues of Vista and Oxford -- and the Oxford acquisition, averaged $10.1 million for the three weeks ended February 18th, 2007, excluding conversion and direct placement revenues. We averaged $9 million in pro forma weekly assignment-only revenues for the same three-week period one year ago. Revenues in the first quarter will be slightly affected due to the winter storms experienced in February, which prohibited our employees from travelling to customer locations, but the impact of the lost billable days will not be material. In addition, our number of hours billed, billable head count and client count continue to be at or near some of the highest levels achieved in 2006. The actions we previously took regarding reduction in cost of services and bill rate increases raised our consolidated gross margins and allowed us to grow our gross profit, operating income and net income faster than our revenues during the fourth quarter and for full year. During the quarter, we increased our year-over-year productivity and gross profit per staffing consultant by 15.8%.

在本季結束時，我們各事業部的服務需求仍然強勁。我們的備考（pro forma）每週營收目前已包含 Vista 與 Oxford 的營收——以及 Oxford 併購案——在截至 2007 年 2 月 18 日止的三週期間，排除系統轉換與直接媒合（direct placement）營收後，平均為每週 1,010 萬美元。一年前同一三週期間，我們備考每週僅派遣（assignment-only）營收平均為 900 萬美元。由於 2 月遭遇冬季風暴，導致員工無法前往客戶地點，第一季營收將略受影響，但可計費天數流失的影響不具重大性。此外，我們的計費工時、可計費人頭數與客戶數仍持續維持在 2006 年所達到的最高水準附近或接近該水準。我們先前採取的降低服務成本與提高計費率等措施，提升了合併毛利率，並使我們在第四季及全年期間的毛利、營業利益與淨利成長速度快於營收成長。本季，我們每位派遣顧問的人均生產力與人均毛利較去年同期提升 15.8%。

I'm pleased that we once again exceeded our targeted adjusted EBITDA margin of 7%, which was originally anticipated to be achieved by the end of 2007. Adjusted EBITDA this quarter, which excludes equity-based compensation expense, was 7.8% of sales, up from 3.8% in the year-ago period. Our newer lines of business which include health information management, clinical research, engineering, local RN, and direct hire, generated $6.6 million in revenues or 8.6% of total revenue for the quarter, compared to 6.3% in the fourth quarter of 2005. If you remember, most of these businesses were launched in 2004 on an organic basis. I would continue to describe each of the end markets we serve, including physician and IT staffing, as productive and consistent with the trends experienced in the fourth quarter of '06. 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.

我很高興我們再次超越 7% 的目標調整後 EBITDA 利潤率，而該目標原先預期於 2007 年底達成。本季調整後 EBITDA（排除股權基礎薪酬費用）占銷售額 7.8%，高於去年同期的 3.8%。我們較新的業務線，包括健康資訊管理、臨床研究、工程、在地 RN（註冊護理師）以及直接聘僱（direct hire），本季創造 660 萬美元營收，占總營收 8.6%，相較 2005 年第四季的 6.3% 提升。如各位所記得，這些業務多數於 2004 年以有機方式推出。我仍會將我們所服務的各終端市場（包括醫師與 IT 派遣）描述為具生產力，且與 2006 年第四季所見趨勢一致。勞動市場尚未緊縮到使我們出現無法轉嫁給客戶的合約員工薪資快速上漲。

Turning to acquisitions, as you are all aware, we announced the completion of the Vista Staffing Solution and Oxford Global Resources acquisitions on 1/3 and 1/31/07 respectively. The Vista acquisition provided us entry into the fast growing physician staffing market. And Oxford provided us access to the $17 billion-plus IT services market. Both of the acquisitions fit well with our strategy of operating in large, fast growing end markets with attractive bill rates and gross margins. We believe that our blend of outstanding services to attractive end markets should yield some of the highest growth rates, bill rates, and gross and EBITDA margins in the staffing industry. Later in the call, Jim will provide you more information regarding the financial impact of the acquisitions.

談到併購，如各位所知，我們分別於 1/3 與 2007/1/31 宣布完成 Vista Staffing Solution 與 Oxford Global Resources 的併購。Vista 併購案使我們得以進入快速成長的醫師派遣市場。而 Oxford 則讓我們得以切入規模超過 170 億美元的 IT 服務市場。這兩項併購皆與我們的策略高度契合：在規模大、成長快速且具吸引人的計費率與毛利率的終端市場中營運。我們相信，將卓越服務與具吸引力的終端市場相結合，應可帶來派遣產業中名列前茅的成長率、計費率，以及毛利率與 EBITDA 利潤率。稍後在電話會議中，Jim 將提供更多關於併購案財務影響的資訊。

Now that the acquisitions are closed we are working hard to support our new businesses and to date, things are going well. I would like to take this opportunity to welcome all employees of Vista and Oxford to the On Assignment family, and we all look forward to their positive contributions. This is the 10th consecutive quarter that the Company has met or exceeded its operating objectives and remain consistent with the operating plans that management set forth. Going forward, our long-term operating objectives are to organically grow revenues 10% to 15%, maintain stable gross margins of approximately 30%, and generate 8% or better adjusted EBITDA margins. Towards the end of our call today, Jim will walk you through the forward guidance that we announced in our earnings release. As for our 2007 guidance, we are excited about the groundwork we have laid, and the strength of the end marks we serve. I would like to now turn the call over to Shawn, and then Emmett, for a more detailed review of operations. Shawn?

現在收購案已完成，我們正全力支持新加入的業務；截至目前，一切進展順利。我想藉此機會歡迎 Vista 與 Oxford 的全體員工加入 On Assignment 大家庭，我們也都期待他們帶來正面的貢獻。這是公司連續第 10 個季度達成或超越營運目標，並且持續符合管理階層先前提出的營運計畫。展望未來，我們的長期營運目標為：以內生成長方式將營收提升 10% 至 15%，維持約 30% 的穩定毛利率，並創造 8% 或更高的調整後 EBITDA 利潤率。在今天電話會議接近尾聲時，Jim 將帶各位說明我們在財報新聞稿中公布的前瞻指引。至於我們對 2007 年的指引，我們對已奠定的基礎以及我們所服務終端市場的強勁表現感到振奮。接下來我想把電話交給 Shawn，然後是 Emmett，請他們更詳細地回顧營運狀況。Shawn？

Thank you, Peter. On Assignment Healthcare Staffing's Q4 results continue to show consistent progress. Our market share and continued client growth over the last several quarters, combined with the strong demand for our healthcare staffing services, all resulted in a 17.8% year-over-year increase in Healthcare Staffing's quarterly revenues. For the fiscal year 2006, On Assignment Healthcare revenues grew 22.3% over fiscal year 2005. A brief summary of Q4 and fiscal year 2006 results per business unit are as follows: In Q4, MF&A revenues were up 17.5% year-over-year to $13.2 million, and Nurse Travel revenues were up 17.9% year-over-year to $32 million. For fiscal year 2006, MF&A revenues grew 26%, while Nurse Travel revenues grew nearly 21%. We continue to gain market share and are seeing increasing staffing consultant productivity. We are also experiencing an ever growing and broadening client base.

謝謝你，Peter。On Assignment Healthcare Staffing 第四季的結果持續展現穩健進展。過去幾個季度我們的市占率提升與客戶持續成長，再加上醫療人力派遣服務需求強勁，共同帶動 Healthcare Staffing 季度營收年增 17.8%。2006 會計年度，On Assignment Healthcare 營收較 2005 會計年度成長 22.3%。以下為按事業單位彙總的第四季與 2006 會計年度結果：第四季 MF&A 營收年增 17.5% 至 1,320 萬美元，Nurse Travel 營收年增 17.9% 至 3,200 萬美元。2006 會計年度，MF&A 營收成長 26%，Nurse Travel 營收成長近 21%。我們持續提升市占率，並看到派遣顧問的生產力不斷提高。我們也正經歷客戶基礎持續擴大且更加多元化。

We are experiencing a period of sustained growth in the healthcare sector, as staffing demand continues to outweigh supply. A recent report from the National Health Statistics Group estimates the U.S. spending on healthcare services is expected to double over next decade. This demand for services is creating tremendous supply pressure across the entire discipline spectrum, as healthcare facilities increased patient loads are creating needs for all healthcare-related personnel, ranging from nurses to diagnostic professionals to health information billers and coders. The go-forward challenges specific to On Assignment Healthcare Staffing remain the same as in 2006. We must continue to recruit great candidates for our clients, attract and retain key personnel to help service this demand, and diversify our client base within Nurse Travel, where we continue to have a top-heavy customer base. Within Nurse Travel, although we have experienced a 300% increase in clients billed over the last two-and-a-half years, our top two customers still represented almost 30% of revenues in 2006.

我們正處於醫療保健產業的持續成長期，因為人力派遣需求仍持續高於供給。國家健康統計組（National Health Statistics Group）近期的一份報告估計，美國在醫療保健服務上的支出預期在未來十年內將翻倍。此一服務需求正在整個專業領域範圍內造成巨大的供給壓力；醫療機構因病患量增加而需要各類醫療相關人員，從護理人員、診斷專業人員，到健康資訊帳務與編碼人員皆然。On Assignment Healthcare Staffing 未來面臨的挑戰與 2006 年相同。我們必須持續為客戶招募優秀候選人，吸引並留任關鍵人才以協助滿足此需求，並在 Nurse Travel 業務中分散客戶基礎，因為我們仍有客戶集中度偏高的情況。在 Nurse Travel 方面，儘管過去兩年半我們的計費客戶數增加了 300%，但 2006 年前兩大客戶仍合計貢獻了近 30% 的營收。

In 2007, we will experience a shift in this client mix, as our second largest customer, representing 14% of 2006 revenues, is in the process of shutting down most of its services due to the Federal Government's stated intention of removing Medicare and Medi-Cal funding. We are working diligently to reassign these nurses, and believe that because of the strength of the healthcare staffing marketplace, we will be successful in reassigning these nurses over the next six months. We view this change in circumstances as an opportunity to further diversify our client base within the Nurse Travel division as we have accomplished in prior quarters. To date, we have made fair and measured progress at reassigning nurses away from the customer referenced above, and our dedicated and hard working staffing consultants remain steadfast in their resolve to continue serving our clients with the highest level of quality, relevancy, and speed. With that, I will pass the call over to Emmett McGrath, our President for Lab Support. Emmett?

2007 年，我們的客戶組合將出現變化，因為我們第二大客戶（占 2006 年營收 14%）正因聯邦政府表明將撤除 Medicare 與 Medi-Cal 資金挹注，而在關閉其大部分服務的過程中。我們正積極努力重新派任這些護理人員，並相信憑藉醫療人力派遣市場的強勁，我們將能在未來六個月內成功完成重新派任。我們將此情勢變化視為進一步分散 Nurse Travel 事業部客戶基礎的機會，正如我們在先前幾個季度所達成的成果。截至目前，我們在將護理人員自上述客戶轉出方面已取得合理且審慎的進展；我們敬業且勤奮的派遣顧問也仍堅定致力於以最高水準的品質、相關性與速度持續服務客戶。接下來，我將把電話交給 Lab Support 總裁 Emmett McGrath。Emmett？

Thank you, Shawn, and good morning. The Lab Support segment performed well in the fourth quarter. Our combined U.S. and European operations grew an impressive 19% over the same quarter last year and gross margin increased 51 basis points to 33%. Despite historical seasonal challenges, revenues grew approximately 2.5% sequentially, from $30.6 million to $31.3 million during the quarter. For fiscal year 2006, the Lab Support segment grew a solid 19%. Gross margin for the year was 32.5% representing a 33 basis point increase. I attribute our performance in fourth quarter and fiscal year 2006 to the health of the industries we serve, business development and recruiting expertise, management, accountability and focus, increased employee productivity, greater client penetration, stellar execution of newer contract awards, and greater contribution from our clinical research and engineering business lines. Early into the first quarter 2007, I'm encouraged with our contract and direct hire order flow, placement activity, pricing gains, weekly revenue trends and pipeline of new business opportunities. The markets we serve, specifically life sciences, which encompasses biotechnology, pharmaceutical, and medical device, continue to offer great opportunities for profitable growth.

謝謝你，Shawn，大家早安。Lab Support 事業群在第四季表現良好。我們美國與歐洲的合併營運較去年同期成長亮眼的 19%，毛利率也提升 51 個基點至 33%。儘管歷來存在季節性挑戰，本季營收仍較前一季約成長 2.5%，由 3,060 萬美元增至 3,130 萬美元。2006 會計年度，Lab Support 事業群穩健成長 19%。全年毛利率為 32.5%，提高 33 個基點。我將第四季與 2006 會計年度的表現歸因於：我們所服務產業的健康度、業務開發與招募專業能力、管理、問責與聚焦、員工生產力提升、客戶滲透加深、新取得合約案的卓越執行，以及臨床研究與工程業務線更高的貢獻。進入 2007 年第一季初期，我對我們的合約與直接聘僱訂單流、派任活動、定價提升、每週營收趨勢以及新商機管線感到鼓舞。我們所服務的市場，特別是涵蓋生物科技、製藥與醫療器材的生命科學領域，仍持續提供可獲利成長的絕佳機會。

To ensure we continue to generate impressive results throughout 2007, our U.S. and European operations are committed to increasing the number of new client engagements, gaining greater depth with our existing clientele, maintaining gross margins, migrating to higher level high-demand skill disciplines, effective contract execution, and again, increased employee productivity. Historically the first quarter is our most challenging quarter. However, outside of recent and potential weather challenges that are beyond our control, I expect demand for our services to remain strong, and the Lab Support segment to generate impressive results. I am confident that we have the necessary leadership, field staff and demand for our services to make the first quarter a success. I'd now like to turn the call over to Jim Brill. Jim?

為確保我們在 2007 年持續創造亮眼成果，我們美國與歐洲的營運團隊將致力於：增加新客戶合作案數量、深化既有客戶關係、維持毛利率、轉向更高層級且高需求的技能領域、有效執行合約，以及再次提升員工生產力。歷來第一季是我們最具挑戰的一季。然而，除近期及可能出現、非我們所能控制的天候挑戰之外，我預期我們服務的需求將維持強勁，Lab Support 事業群也將交出亮眼成績。我有信心我們具備必要的領導團隊、前線人員以及服務需求，足以讓第一季取得成功。接下來我想把電話交給 Jim Brill。Jim？

Thanks, Emmett. Consolidated revenues were $76.5 million, up 1.1% sequentially. There were 61.5 billing days in this quarter and in Q4 2005, versus 62.5 days in Q3 2006. For Nurse Travel, there were 92 billing days this quarter, last quarter, and in Q4 2005. Lab segment revenues were $31.3 million, up 2.5% sequentially, and represented 41% of total revenues. Lab Support Europe revenues were $5.1 million, up 1% sequentially. On a constant currency basis, revenues were up 17.7% year-over-year, and up marginally sequentially. Lab Europe revenues were 6.6% of total revenues for the quarter. Healthcare Staffing revenues were $45.2 million, up slightly sequentially and up 17.8% over Q4 2005. Healthcare Staffing represented 59% of total revenues. Within Healthcare Staffing, Nurse Travel revenues were $32 million, unchanged sequentially, and up 17.9% over Q4 '05. Nurse Travel represented 41.8% of total revenues.

謝謝你，Emmett。合併營收為 7,650 萬美元，較前一季成長 1.1%。本季與 2005 年第四季的計費天數為 61.5 天，而 2006 年第三季為 62.5 天。就 Nurse Travel 而言，本季、上一季以及 2005 年第四季的計費天數皆為 92 天。Lab 事業群營收為 3,130 萬美元，較前一季成長 2.5%，占總營收 41%。Lab Support Europe 營收為 510 萬美元，較前一季成長 1%。以固定匯率計算，營收年增 17.7%，較前一季則小幅成長。本季 Lab Europe 營收占總營收 6.6%。Healthcare Staffing 營收為 4,520 萬美元，較前一季小幅成長，較 2005 年第四季成長 17.8%。Healthcare Staffing 占總營收 59%。在 Healthcare Staffing 之中，Nurse Travel 營收為 3,200 萬美元，較前一季持平，較 2005 年第四季成長 17.9%。Nurse Travel 占總營收 41.8%。

MF&A revenues were $13.2 million, up slightly sequentially, and up 17.5% over Q4 2005. MF&A represented 17.2% of total revenues. Conversion and direct hire revenues totaled $1.9 million, compared with $2 million in Q3 2006 and $1.2 million in Q4 2005. Conversion and direct hire revenues represented 2.4%, 2.6%, and 1.9% of total revenues for Q4 '06, Q3 '06, and Q4 '05 respectively. I might just add at this point that going forward for the first quarter of 2007 and beyond, we'll report revenues and results based on four segments in the business: On Assignment Healthcare, On Assignment Lab Support, Vista, and Oxford.

MF&A 營收為 1,320 萬美元，較前一季小幅上升，並較 2005 年第四季成長 17.5%。MF&A 佔總營收的 17.2%。轉任（conversion）與直接聘僱（direct hire）營收合計 190 萬美元，相較於 2006 年第三季的 200 萬美元及 2005 年第四季的 120 萬美元。轉任與直接聘僱營收分別佔 2006 年第四季、2006 年第三季與 2005 年第四季總營收的 2.4%、2.6% 與 1.9%。我在此補充一點，展望 2007 年第一季及其後，我們將依據業務的四個部門來揭露營收與結果：On Assignment Healthcare、On Assignment Lab Support、Vista，以及 Oxford。

Consolidated gross profit was $20.8 million for the quarter and consolidated gross margin was 27.2%, compared with 26.2% in Q4 2005 and 27.5% in Q3 2006. Lab Support and gross profit was approximately $10.4 million for the quarter, which was a gross margin of 33%, compared to 32.7% for Q3 2006 and 32.5% for Q4 2005. The 51 basis point increase year-over-year was primarily related to increased direct hire and conversion revenues, lower holiday and appreciation pay expenses, and a favorable adjustment for Workers' Compensation expense. These favorable adjustments were offset by higher payroll taxes and increased medical expense.

本季合併毛利為 2,080 萬美元，合併毛利率為 27.2%，相較於 2005 年第四季的 26.2% 與 2006 年第三季的 27.5%。Lab Support 的毛利約為 1,040 萬美元，本季毛利率為 33%，相較於 2006 年第三季的 32.7% 與 2005 年第四季的 32.5%。年增 51 個基點主要與直接聘僱與轉任營收增加、假期與表揚獎金（appreciation pay）支出降低，以及工傷補償（Workers' Compensation）費用的有利調整有關。上述有利調整部分被較高的薪資稅與增加的醫療費用所抵銷。

Healthcare Staffing gross profit was $10.5 million for the quarter, with a gross margin of 23.1%, compared to 23.9% for Q3 '06, and 21.9% for Q4 '05. Within the Healthcare Staffing segment, Nurse Travel gross profit was $6.7 million, which was a gross margin of 21%, compared to 20.3% in Q3 '06, and 19.7% in Q4 '05. The 130 basis point increase year-over-year was primarily related to bill pay margin expansion, offset by increased travel and housing costs, and Workers' Compensation expense. For MF&A, gross profit was $3.7 million for the quarter, which was a gross margin of 28.4% compared with 32.8% in Q3 '06 and 27.4% in Q4 '05. The 98 basis point increase year-over-year was primarily related to higher bill pay margins, lower appreciation, holiday pay and medical expenses, and an increase in direct hire and conversion revenues. These favorable adjustments were partially offset by increased Workers' Compensation expense, increased expenses related to higher travel, and housing costs for contract professionals and payroll taxes.

Healthcare Staffing 本季毛利為 1,050 萬美元，毛利率為 23.1%，相較於 2006 年第三季的 23.9% 與 2005 年第四季的 21.9%。在 Healthcare Staffing 部門內，Nurse Travel 毛利為 670 萬美元，毛利率為 21%，相較於 2006 年第三季的 20.3% 與 2005 年第四季的 19.7%。年增 130 個基點主要與帳單與薪資之間的利差（bill pay margin）擴大有關，但被差旅與住宿成本上升以及工傷補償費用所抵銷。就 MF&A 而言，本季毛利為 370 萬美元，毛利率為 28.4%，相較於 2006 年第三季的 32.8% 與 2005 年第四季的 27.4%。年增 98 個基點主要與較高的 bill pay 利差、較低的表揚獎金、假期薪資與醫療費用，以及直接聘僱與轉任營收增加有關。上述有利調整部分被工傷補償費用增加、與合約專業人員較高的差旅與住宿成本相關費用增加，以及薪資稅增加所部分抵銷。

Total SG&A expense for the fourth quarter was $17.2 million, or 22.5% of total revenues. Excluding $1.1 million related to equity-based compensation expense and severance costs related to the resignation of the CFO for medical reasons, SG&A expense was $15.8 million or 20.6% of revenues. For Q4 '05, SG&A was $16.2 million or 25.1% of revenues, and included $68,000 of equity-based compensation expense. Depreciation expense for the quarter was $1.1 million, compared with $1.1 million in Q3 '06 and $1.4 million in Q4 '05. Amortization expense for the quarter was $242,000, down from $281,000 in the year-ago period, and $243,000 for Q3 '06. Our operating income was $3.6 million for the quarter, compared with operating income of $744,000 for the fourth quarter of 2005.

第四季 SG&A（銷售、一般及行政）總費用為 1,720 萬美元，佔總營收的 22.5%。扣除 110 萬美元的股權基礎薪酬費用，以及因 CFO 因健康因素辭職所產生的資遣成本後，SG&A 費用為 1,580 萬美元，佔營收的 20.6%。2005 年第四季 SG&A 為 1,620 萬美元，佔營收的 25.1%，其中包含 6.8 萬美元的股權基礎薪酬費用。本季折舊費用為 110 萬美元，相較於 2006 年第三季的 110 萬美元與 2005 年第四季的 140 萬美元。本季攤銷費用為 24.2 萬美元，低於去年同期的 28.1 萬美元，且與 2006 年第三季的 24.3 萬美元相近。本季營業利益為 360 萬美元，相較於 2005 年第四季的營業利益 74.4 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 equity-based compensation expense of $1.1 million, adjusted EBITDA was $6 million or 7.8% of revenue. Adjusted EBITDA was $2.5 million in Q4 2005 and $5.7 million in Q3 2006. We ended the quarter with cash and cash equivalents and restricted cash of $110.2 million, up from $35.6 million in the preceding quarter. For the quarter, cash provided by operations was $2.5 million, cash provided by net proceeds from stock transactions was $71.5 million, which includes $71.4 million from the Company's public offering in November. And cash used for investing activities was $652,000. CapEx was approximately $1.1 million, up from $800,000 in the prior quarter. Net accounts receivable was $39.1 million at the end of the fourth quarter, a decrease of approximately $2.2 million sequentially. On a consolidated basis, days sales outstanding were 48.7, down from 51.6 in the prior quarter, and 52.5 in Q4 '05.

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 具有意義。如同昨日新聞稿所述，本季 EBITDA 為 490 萬美元。扣除 110 萬美元的股權基礎薪酬費用後，調整後 EBITDA 為 600 萬美元，約佔營收的 7.8%。2005 年第四季調整後 EBITDA 為 250 萬美元，2006 年第三季為 570 萬美元。本季期末現金及約當現金與受限制現金合計 1.102 億美元，較前一季的 3,560 萬美元增加。本季營運活動提供的現金為 250 萬美元；股票交易淨收益提供的現金為 7,150 萬美元，其中包含公司 11 月公開發行所募得的 7,140 萬美元。投資活動使用的現金為 65.2 萬美元。資本支出（CapEx）約為 110 萬美元，高於前一季的 80 萬美元。第四季期末應收帳款淨額為 3,910 萬美元，較前一季約減少 220 萬美元。以合併基礎計算，應收帳款週轉天數（DSO）為 48.7 天，低於前一季的 51.6 天，以及 2005 年第四季的 52.5 天。

Now, turning to productivity, which we define as quarterly gross profit generated per staffing consultant, for the fourth quarter we averaged 261 staffing consultants. They each generated $79,700 in gross profit, a 3% sequential decrease. In Q3 2006, we averaged 253 staffing consultants, and they each generated $82,000 in gross profit. Each staffing consultant had an average of 15.7 contract professionals out on assignment, down from 15.8 in the previous quarter. Lab productivity was 19.4 versus 19.5 in the previous quarter, MF&A productivity was 12 versus 11.9 in the previous quarter, and Nurse Travel was 13.7 versus 14.2.

接著談生產力，我們將其定義為每位派遣顧問在單季所創造的毛利；第四季我們平均有 261 位派遣顧問。每位顧問創造 79,700 美元毛利，較前一季下降 3%。2006 年第三季我們平均有 253 位派遣顧問，每位創造 82,000 美元毛利。每位派遣顧問平均有 15.7 位合約專業人員在外派任，低於前一季的 15.8。Lab 生產力為 19.4（前一季為 19.5），MF&A 生產力為 12（前一季為 11.9），Nurse Travel 為 13.7（前一季為 14.2）。

Turning to guidance, for Lab and MF&A, there are 63.5 billing days in the first quarter compared to 61.5 for the fourth quarter of 2006, and 64.5 for Q1 '06. Nurse Travel and Vista, there are 90 days compared to 92 days in Q4 '06, and 90 days in Q1 '06. For Oxford Global Resources there were 64 days -- there will be 64 days compared with 59.7 in Q4 '06, and 64 in Q1 '06. We currently project consolidated revenues of $120 million to $123 million for the quarter ending March 31st, 2007. This revenue projection includes Vista results for the entire quarter, and two months of Oxford results, based on the January 31st closing date. We're projecting consolidated gross margins of approximately 29% to 29.5% and SG&A of $31.5 million to $32.5 million, including equity-based compensation expenses of $875,000, $200,000 of incremental costs associated with audits and 404 compliance for Vista and Oxford, $2.9 million in amortization of intangible assets and financing costs associated with the acquisitions, and other depreciation and amortization of $1.5 million.

接著談財測（guidance），就 Lab 與 MF&A 而言，第一季有 63.5 個計費日，相較於 2006 年第四季的 61.5 個，以及 2006 年第一季的 64.5 個。Nurse Travel 與 Vista 為 90 天，相較於 2006 年第四季的 92 天，以及 2006 年第一季的 90 天。就 Oxford Global Resources 而言為 64 天——將為 64 天，相較於 2006 年第四季的 59.7 天，以及 2006 年第一季的 64 天。我們目前預估截至 2007 年 3 月 31 日止之季度，合併營收為 1.2 億至 1.23 億美元。此營收預估包含 Vista 全季的結果，以及依 1 月 31 日交割日計算的 Oxford 兩個月結果。我們預估合併毛利率約為 29% 至 29.5%，SG&A 為 3,150 萬至 3,250 萬美元，其中包含 87.5 萬美元的股權基礎薪酬費用、與 Vista 與 Oxford 的稽核及 404 合規相關的 20 萬美元增量成本、與收購相關之無形資產攤銷及融資成本攤銷 290 萬美元，以及其他折舊與攤銷 150 萬美元。

We project earnings per share of $0.02 to $0.04 based on 35.7 million weighted average shares outstanding, which includes approximately 795,000 shares issued in conjunction with the Oxford acquisition at an effective tax rate of 38.5%. We're still in the process of allocating the purchase price of Vista and Oxford to amortizable intangibles and financing costs, and therefore the related amortization is only an estimate, which could rang from $2.5 million to $3 million.

我們預估每股盈餘為 0.02 美元至 0.04 美元，係以 3,570 萬股加權平均流通在外股數為基礎，其中包含與 Oxford 收購案相關發行的約 795,000 股，並假設有效稅率為 38.5%。我們仍在將 Vista 與 Oxford 的購買價格分攤至可攤銷之無形資產與融資成本的過程中，因此相關攤銷僅為估計值，可能介於 250 萬美元至 300 萬美元。

Based on the first quarter guidance and assuming fairly stable labor markets, our guidance for revenues for the full year is $565 million to $585 million, which represents pro forma growth of approximately 10% to 14% over 2006. We're projecting average gross margin for the year of approximately 29.5% to 30.2%, consolidated SG&A of $149 million to $152 million dollars, including equity-based compensation expense of $5.7 million, which is higher due to stock option and restricted stock issuances related to the acquisitions, $800,000 of incremental costs associated with audits and Sarbanes compliance for Vista and Oxford, the preliminary estimate of $15.1 million in amortization of intangible assets and deferred financing costs associated with the acquisitions, and other depreciation and amortization of $6.7 million. We're still in the process of finalizing the allocation of the purchase price of Vista and Oxford. The amortization of intangibles could range from $13.5 million to $15.5 million. This amount will decrease by approximately 50% in 2008.

基於第一季指引並假設勞動市場相對穩定，我們對全年營收的指引為 5.65 億美元至 5.85 億美元，代表相較 2006 年按備考（pro forma）基礎約成長 10% 至 14%。我們預估全年平均毛利率約為 29.5% 至 30.2%，合併 SG&A 為 1.49 億美元至 1.52 億美元，其中包含 570 萬美元的股權基礎薪酬費用（因收購相關之員工認股權與限制性股票發行而較高）、與 Vista 與 Oxford 之稽核及 Sarbanes 合規相關的 80 萬美元增量成本、與收購相關之無形資產及遞延融資成本攤銷的初步估計 1,510 萬美元，以及其他折舊與攤銷 670 萬美元。我們仍在完成 Vista 與 Oxford 購買價格分攤的最後定案。無形資產攤銷可能介於 1,350 萬美元至 1,550 萬美元。該金額在 2008 年將約減少 50%。

We project earnings per share of approximately $0.25 to $0.28, which includes the negative $0.26 per share impact of intangible asset amortization related to the acquisitions, net interest expense of $9.3 million, 36.2 million weighted average shares outstanding, and an effective tax rate of 38.5%. Adjusted EBITDA is projected to range from $48 million to $53 million. As you know, these estimates are subject to the risks mentioned in yesterday's release and at the beginning of this conference call. Now back to Pete for some closing remarks before we open up the lines for questions. Peter?

我們預估每股盈餘約為 0.25 美元至 0.28 美元，其中包含收購相關無形資產攤銷對每股造成的負面影響 0.26 美元、淨利息費用 930 萬美元、3,620 萬股加權平均流通在外股數，以及 38.5% 的有效稅率。調整後 EBITDA 預估介於 4,800 萬美元至 5,300 萬美元。如各位所知，這些估計值仍受昨日新聞稿及本次電話會議開場提及之風險影響。接下來交回 Pete，在我們開放提問前做一些結語。Peter？

Thank you, Jim. On Assignment's growth opportunities still are largely dependent on our own internal execution, and not on any improvement in the end markets we serve. This quarter's performance substantiates the strength of our diversified business model, and is a result of the operational and management changes we have made over the last 36 months. I would like to once again thank our many loyal, dedicated, and talented employees whose efforts have allowed us to progress to where we are today. We'd like to now open the call up to participants for questions. Operator?

謝謝你，Jim。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。本季表現證實我們多元化商業模式的強韌性，並且是我們在過去 36 個月所做的營運與管理變革的成果。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。我們現在開放與會者提問。接線員？

[OPERATOR INSTRUCTIONS] Tobey Sommer.

[接線員指示] Tobey Sommer。

Wanted to ask a question about productivity, which had been a theme among the staffing consultants kind of for the last year or so. Could you refresh us maybe on how we should think about that now that you have got some new businesses in the mix, and maybe where those are from a productivity standpoint? And kind of what sort of improvements you think we should expect going forward? Thank you.

我想問一個關於生產力的問題，這在過去一年左右一直是人力派遣顧問圈子裡的主題。在你們把一些新業務納入組合之後，能否請你們更新一下我們現在應該如何看待這件事，以及從生產力角度來看那些新業務目前處於什麼位置？另外，往後你們認為我們應該期待哪些方面的改善？謝謝。

Right. Thanks, Tobey. Good morning. Tobey, now that we have different lines of businesses that carry different levels of productivity, we're reevaluating all the metrics. What I can tell you is we're completely committed to being able to give you pro forma growth rates and performance, and allowing you to measure kind of same-store sales for legacy On Assignment, Vista, and Oxford. With that said, we used to quote, and we did in this earnings call, two measurements of productivity. One was gross profit per staffing consultant, where you just take the absolute gross profit dollar and divide it by the number of staffing consultants. And the other was number of contract professionals per staffing consultant, which was a little bit of back of the envelope, because we would have to make some assumptions about full time equivalents.

好的。謝謝你，Tobey。早安。Tobey，現在我們有不同的業務線，而各自的生產力水準不同，我們正在重新評估所有指標。我可以告訴你的是，我們完全承諾會提供備考（pro forma）的成長率與表現，讓你能衡量原有 On Assignment、Vista 與 Oxford 的類同店（same-store）銷售表現。話雖如此，我們過去常引用、而且這次財報電話會議也提到的生產力衡量有兩項。第一項是每位派遣顧問的毛利，也就是把毛利的絕對金額除以派遣顧問人數。第二項是每位派遣顧問所對應的合約專業人員數，這比較像是粗略估算，因為我們必須對全職當量做一些假設。

On a go forward basis, I think the only number we are going to quote you is the gross profit dollars per staffing consultant, because the productivity levels for physician staffing and IT are different than they are for old On Assignment. So I don't think it's a relevant measurement. But we will give you a measurement tool to see how we progress. We feel that we have kind of filled the pipeline with, as you saw, our head count is about 261 at old On Assignment. And Vista and Oxford, at the end of the fourth quarter of '06, each ramped up a little bit on their hiring. So we feel that we've done the requisite hiring, and then we started the year with a full team. And we're looking to leverage the new employees that we have to higher levels of productivity than they currently have. Jim, do you want to add anything to that?

展望未來，我認為我們唯一會對外引用的數字是每位派遣顧問的毛利金額，因為醫師派遣與 IT 的生產力水準與舊 On Assignment 不同。所以我不認為那是一個相關的衡量方式。但我們會提供一個衡量工具，讓你看到我們如何進展。我們覺得我們已經把管道填滿了；如你所見，舊 On Assignment 的人頭數約為 261 人。而 Vista 與 Oxford 在 2006 年第四季末也各自把招募稍微拉升了一些。因此我們認為已完成必要的招募，並以完整團隊開始新的一年。我們希望透過槓桿運用這些新進員工，把生產力提升到高於目前的水準。Jim，你要補充什麼嗎？

No. I think you summarized it. What we are looking at going forward as far as productivity is, at least for disclosure purposes, gross profit per staffing consultant. And we'll give that to you.

沒有。我想你總結得很好。就未來的生產力而言，至少在資訊揭露層面，我們會看的指標是每位派遣顧問的毛利。我們會提供這個數字給你。

Thank you. I was wondering if you could touch on how the amortization related to intangibles in the acquisitions will kind of roll off the P&L over the next couple of years? Thanks.

謝謝。我想請問你們能否談談，收購案相關的無形資產攤銷在未來幾年會如何逐步自損益表（P&L）中消退？謝謝。

As I mentioned in the call, the amortization will drop in 2008 by approximately 50%, and then in 2009 it should drop again by about 50%. So it comes off fairly quickly. It's much faster than a straight line kind of amortization.

如我在電話會議中提到的，攤銷在 2008 年將約下降 50%，然後在 2009 年應該會再下降約 50%。所以它消退得相當快。這比直線法那種攤銷速度快得多。

And just one other question, Peter, kind of about the revenue guidance. Is there a meaningful difference between the growth rate implied for the legacy On Assignment businesses versus the acquisitions? Or are they, on a blended basis, more or less in the same ballpark?

另外還有一個問題，Peter，關於營收指引。原有 On Assignment 業務所隱含的成長率，與收購而來的業務之間是否有顯著差異？或者以合併後的加權平均來看，它們大致上差不多？

There's not a big significant change. I would -- I guess the only thing I would share publicly with you is I think we have the physician staffing with the fastest growth rate of kind of the three flavors. But they're all double-digit growth rates.

沒有很大的顯著變化。我想——我猜我唯一能公開跟你分享的是，我認為三種業務型態中，醫師派遣的成長率最快。但它們全部都是雙位數成長率。

Okay. And then any comments that you could share with us, and I'll get back in the queue, about the Oxford branch of offices, and any kind of update as to any that have been consolidated? Or any maybe initial successes in cross-selling any services, where one particular flavor of staffing was not represented previously?

好的。另外，如果你能跟我們分享一些看法——我會回到排隊序列——關於 Oxford 的分公司據點，以及是否有任何據點已經整併的最新進展？或者在交叉銷售方面是否有任何初步成功案例，例如在某些據點過去並未提供某一類派遣服務，而現在開始導入？

Well, let me -- first of all, again, these acquisitions were premised off of growth versus any sort of significant synergy savings. We are looking at leases that are lapsing to see if we can renew and cohabitate together. The real benefit of cohabitation is not so much the lease absorption as, when you've got a branch office that now has 15 or 30 people in it, versus only five or six people respectively, there's just a lot more energy and momentum that is generated from those larger offices. We are looking at -- Mike McGowan is looking right now, and we got have a preliminary target of three or four markets we hope to open or reopen for Oxford in places that we are at, and that should be occurring throughout 2007. I can't give you a time line for that. And then I guess, Emmett, why don't you just give them a little anecdotal story of where it wasn't so much cross-selling, but it was recognition of the two companies where lab was selling, and then independently Oxford was in there, and we got a note from the customer.

嗯，讓我——首先，再次說明，這些收購的前提是成長，而不是任何形式的重大協同節省。我們正在檢視即將到期的租約，看看是否能續約並共同進駐。共同進駐的真正好處，與其說是租金的吸收，不如說當你有一個分公司現在有15或30個人，而不是分別只有五、六個人時，較大的辦公室會產生更多的活力與動能。我們正在看——Mike McGowan 目前正在看，我們也有一個初步目標，鎖定三到四個市場，希望在我們已經所在的地方為 Oxford 開設或重新開設據點，這應該會在2007年全年陸續發生。我無法給你一個時間表。然後我想，Emmett，你不如跟他們分享一個小故事：那不太算是交叉銷售，而是客戶認知到兩家公司——當時實驗室端在銷售，而 Oxford 也獨立在那裡，我們收到客戶的一封訊息。

Certainly, Peter. Good morning, Tobey. Yes, in the Northern California market, we had an opportunity with a medical device company. And went out to bid, and it was a very nice opportunity. And lo and behold, we found out that Oxford was going for the engineering and Lab Support was going for the scientific. So together, we combined the name, so to speak, and we did get that contract. So it's an example of some cross-selling there. And hope to see more in the coming months.

當然可以，Peter。早安，Tobey。是的，在北加州市場，我們有一個與某家醫療器材公司的機會。我們去投標，那是一個非常不錯的機會。結果我們發現，Oxford 在爭取工程端，而 Lab Support 在爭取科學端。所以我們就把名稱結合在一起——可以這麼說——而且我們確實拿到了那份合約。所以這是交叉銷售的一個例子。也希望在接下來幾個月看到更多這樣的情況。

Thank you very much.

非常感謝。

Jim Janesky.

Jim Janesky。

I have a couple of questions. The first is, when you look at the recovery in pro forma revenues for the first couple of weeks of this quarter versus last year, how did that compare to '05? I guess where I'm coming from is, have things accelerated after the usual seasonal slow down, which appeared in the fourth quarter to not be that much of a slow down to begin with, how would you characterize the beginning of 2007 for all of your combined entities?

我有幾個問題。第一個是，當你看本季前幾週的備考（pro forma）營收相較去年出現回升時，這與2005年相比如何？我的意思是，在通常的季節性放緩之後，是否出現加速？第四季看起來本來就沒有太明顯的放緩；你會如何描述你們所有合併後的各個事業體在2007年初的表現？

Good morning, Jim, this is Pete. I'll go first. I'll give you more qualitative versus quantitative. I will tell that you that perm placement is not a bit focus of ours, but did it pick up immediately after the traditional lull of the fourth quarter, which was kind of unique. It wasn't that way in '05. We have seen -- we typically start to dip, and kind of December 14th, and historically for old On Assignment, it took until kind of March the 1st to get back to historical levels. Lab Support and MF&A started the year at higher head count. And although we traditionally experience a lot of terms, so our new starts are offsetting terminations, those two businesses have done very, very well. As you know, for Nurse Travel, it had an absolute spectacular first quarter of 2006. It actually was up, I think, 38%.

早安，Jim，我是 Pete。我先回答。我會多給一些質性的描述，而不是量化數字。我可以告訴你，永久派遣（perm placement）不是我們的主要重點，但它確實在第四季傳統淡季之後立刻回升，而那次淡季其實有點特別。2005年並不是那樣。我們看到——我們通常在大約12月14日開始下滑，而就過去的 On Assignment 而言，歷史上要到大約3月1日才會回到歷史水準。Lab Support 和 MF&A 在年初是以較高的人頭數開始。雖然我們傳統上會有不少離職，所以新進人員會抵銷離職，但那兩個業務表現非常、非常好。如你所知，護理旅派（Nurse Travel）在2006年第一季表現極為亮眼。我記得它實際上成長了大約38%。

We have that phenomenon where we're weaning ourselves off of our second largest customer. But with that said, our head count in Nursing is around 780 nurses today, and that's even -- that's a pretty high number, considering we're down 80 or 100 nurses at that second largest customer. So we're growing over that attrition. So we feel pretty -- very good about the healthcare market. As for physician and IT, both of those businesses are targeted to be up sequentially first over fourth and first over first, with very high growth rates. So I would tell you the markets are pretty good. We have experienced a little higher conversion of our temps to perm, which causes us to have to have more starts. But the market feels pretty good right now. And we probably started the year at higher levels than we did the first quarter of '06.

我們有一個現象，就是我們正在逐步降低對第二大客戶的依賴。但即便如此，我們護理業務目前的人頭數大約是780名護理師，而且——考量到我們在那個第二大客戶那邊少了80到100名護理師，這仍然是相當高的數字。所以我們是在那樣的流失之上仍持續成長。因此我們對醫療照護市場感覺相當——非常好。至於醫師與IT，這兩個業務的目標都是要在序列上第一季相較第四季成長、第一季相較去年第一季也成長，而且成長率會很高。所以我會說市場狀況相當不錯。我們確實看到臨時人員轉為正式員工（temps to perm）的轉換率略高，這會使我們必須有更多新進到職。但目前市場感覺相當好。而且我們今年年初的水準，可能比2006年第一季開始時還要高。

Okay, thanks. And then could you -- Shawn, could you spend a little bit more time talking about what happened at that second largest customer? I didn't really catch the full story. And how quickly do you anticipate that you will be able to reassign these nurses? I assume the demand is still out there, that you should be able to reassign them, right?

好的，謝謝。另外——Shawn，你能不能多花一點時間談談那個第二大客戶發生了什麼事？我沒有完全聽到完整的來龍去脈。你預期多快能把這些護理師重新派任？我假設需求仍然存在，你們應該能把他們重新派出去，對吧？

Yes, that's right, Jim. Good morning. First off, we have a large customer that represents around 16% of our 2006 revenues that has been, in essence, told that it is not going to receive its federal and state funding from Medicare and Medi-Cal. And therefore, over the last six months, we have been working with that customer. And really, the impact started to occur in December and early January, where that customer is shutting down most of its services, to the point where it is going to be just providing some outpatient approach. And therefore, we were running a very high head count, and we are running at a small, small fraction of that at this point. So we anticipate that those nurses, as you know, continue to take a little bit of time to reassign to our valued other customers. And that period of time takes about four to six months, where we can really get everybody reassigned in an expedient fashion. Because many of the nurses will take time off, they'll take full-time assignments. So we don't necessarily have a one to one replacement to fill ratio.

是的，沒錯，Jim。早安。首先，我們有一個大客戶，約占我們2006年營收的16%，基本上被告知將無法從 Medicare 與 Medi-Cal 取得其聯邦與州政府的資金補助。因此，在過去六個月，我們一直與該客戶合作。實際影響在12月與1月初開始出現，該客戶關閉了大部分服務，到了只會提供一些門診型態服務的程度。因此我們原本的人頭數非常高，而目前只剩下那個規模的一小小部分。所以我們預期，如你所知，將這些護理師重新派任到我們其他重要客戶那邊，仍需要一些時間。這段期間大約需要四到六個月，我們才能以較有效率的方式把大家都重新派任。因為許多護理師會休假，或是會接受全職派遣。所以我們不一定能做到一比一的替補填補比例。

That was 16% of Nurse Travel revenues, not company-wide? Right?

那是占護理旅派（Nurse Travel）營收的16%，不是全公司層級？對嗎？

T's correct. It was 14% or 16% of Nurse Travel revenues for 2006.

沒錯。那是2006年護理旅派營收的14%或16%。

Okay. Great. Thanks for giving more detail. And then final question, Pete, is what do you think are going to be the bigger challenges for 2007 as we go in? You have talked about the highlights of what you are optimistic about. But can you just give us an idea of what the challenges are? Is it integration? Is it -- I know you're not really doing a lot of integration. But if you could give us some idea, that would be helpful.

好的。很好。謝謝你提供更詳細的說明。最後一個問題，Pete，你認為我們進入2007年後，最大的挑戰會是什麼？你談了你樂觀的亮點。但你能否讓我們了解一下挑戰是什麼？是整合嗎？還是——我知道你們其實沒有做很多整合。但如果你能給我們一些概念，會很有幫助。

I don't think there's a lot of risk in the integration side of it, because as you know, we're -- we bought a 16-year-old and a 22-year-old company that have very defined business models and go-to-market approaches. The integration you are going to see is how we map the financials over to ours, so that we can report things, and forecast things internally accurately. I think the challenges we have are the same challenges that our customers have. We're operating in an incredibly tight labor market. And that labor market is very tight for recruiters and sales people and back office support people. So we have to be -- we have got to be world-class in retention and recruitment of our own people, as much as placing of people.

我不認為整合面有很大的風險，因為如你所知，我們——我們買的是一家成立16年的公司和一家成立22年的公司，它們都有非常明確的商業模式與市場進入策略。你會看到的整合，是我們如何把財務資料對應到我們的架構上，讓我們能夠對外報告、並在內部準確地進行預測。我認為我們面臨的挑戰，和我們客戶面臨的挑戰是一樣的。我們正處於一個極度緊俏的勞動市場。而且這個勞動市場對招募人員、業務人員以及後勤支援人員都非常緊俏。所以我們必須——我們必須在留才與招募自家人才方面做到世界級，就像我們在為客戶媒合人才一樣。

I think, trying to be a little more forward-looking, I think that housing and travel increases, we have got to manage that and be thoughtful with discussions with our customers, that some of these increases that we have to pass along to them are beyond our control. We have been successful, and as you saw in our reported numbers, in being able to avoid a margin compression. But it's a real-life fact that housing and travel has gone up. I don't see a risk of -- our perm placement business is very controlled. So I don't see that as being a big threat for us in '07 if the markets soften a little bit. Our client concentration, except for those two accounts that we addressed in Nurse Travel, really is not sizable. Our product -- our pipeline is very, very robust. And I guess the final thing is to make sure that we don't get lax on our selection process, and we do not get lax on our management of personnel on productivity. As we told you, we kind of ramped up our head count in the fourth quarter so that we were fully loaded for '07. And we need to make sure that our new associates are focused and trained in the right fashion.

我想，試著更具前瞻性一點，我認為住房與差旅成本的上升，我們必須加以管理，並在與客戶的溝通中保持審慎，因為其中一些我們必須轉嫁給他們的漲幅並非我們所能控制。我們一直很成功，而且如你們在我們公布的數字中所看到的，我們能夠避免毛利率被壓縮。但現實情況是住房與差旅確實上漲了。我看不到風險——我們的永久派遣（perm placement）業務控管得非常嚴謹。因此，如果市場在 07 年稍微轉弱，我不認為這會對我們構成很大的威脅。除了我們在護理差旅（Nurse Travel）中提到的那兩個客戶之外，我們的客戶集中度其實並不高。我們的產品——我們的案源管線非常、非常強勁。我想最後一點是要確保我們不會在甄選流程上鬆懈，也不會在對人員生產力的管理上鬆懈。如同我們告訴各位的，我們在第四季提高了人力編制，以便在 07 年能夠滿載運作。我們需要確保新進同仁能以正確的方式專注並接受訓練。

Okay, thank you.

好的，謝謝。

Jeff Silber.

Jeff Silber。

Just a couple of follow-ups from some of the previous questions. And I am going to go back to this amortization issue. Is there any specific reason why you're doing this accelerated amortization, why the auditors are telling you to do this? A lot of the other transaction and space we don't see this. And I was wondering if we could get a little bit more color on that?

針對前面一些問題再追問幾點。我想回到這個攤銷（amortization）議題。你們進行加速攤銷有任何特定原因嗎？為什麼審計師會要求你們這麼做？在其他交易與同業領域，我們並不常看到這種情況。我想知道能否請你們再多提供一些背景說明？

There are a lot of different methodologies to value a staffing company and to value the intangible assets of a staffing company. In this particular case, obviously Oxford is a significant piece of these two acquisitions. And so the valuation methodology for the Oxford business and the staffing consultants and the customers of Oxford are what's driving this. And there are also has been some additional guidance from the accounting profession on how these businesses ought to be -- on how businesses in general ought to be valued, and how the amortization of these intangibles should be handled. So number one, every company is unique, and this is driven in great part by the valuation of Oxford and the characteristics of Oxford. And two, within the last 12 or 18 months, there's been some additional guidance as to how all this is handled.

對於如何評價一家人力派遣公司，以及如何評價其無形資產，有許多不同的方法。在這個特定案例中，很明顯 Oxford 是這兩起收購中的重要組成。因此，對 Oxford 業務的估值方法，以及對 Oxford 的派遣顧問與客戶的估值方式，是推動這件事的主要因素。此外，會計專業界也針對這類業務應如何——更一般地說，企業應如何估值，以及這些無形資產的攤銷應如何處理——提供了一些額外指引。所以第一，每家公司都有其獨特性，而這在很大程度上是由 Oxford 的估值與 Oxford 的特性所驅動。第二，在過去 12 到 18 個月內，關於這整套處理方式也有一些新增指引。

And what kind of useful life are we talking about for these assets?

那這些資產的耐用年限（useful life）大概是多久？

Well, the useful life for Oxford ultimately, I think, is -- from a realistic basis, it ends up being probably 10 or 12 years. But on a weighted average basis, the weighted average probably ends up being two years. Jeff, are you still with us?

嗯，Oxford 的耐用年限最終我認為——以較務實的角度來看——大概會是 10 到 12 年。但以加權平均來看，加權平均可能最後大概是兩年。Jeff，你還在線上嗎？

Yes, I still have another accounting related question. Sorry about this. In terms of tax rates, had you not taken this valuation allowance in the fourth quarter, what would the tax rate have been in '07? What is the impact of that?

是的，我還有另一個與會計相關的問題。不好意思。就稅率而言，如果你們在第四季沒有提列這個估值備抵（valuation allowance），那 07 年的稅率會是多少？它的影響是什麼？

What would the estimated tax rate be in '07?

你是問 07 年的預估有效稅率會是多少？

Yes, I was just trying to see what the impact of this reversal in the fourth quarter was.

是的，我只是想了解第四季這次回轉（reversal）的影響。

You mean in '06?

你是指在 06 年嗎？

In '06, yes.

對，06 年。

No, I don't have it off the top of my head, I'm sorry.

不，我一時想不起來，抱歉。

Okay. And again, did it impact the guidance for '07 at all, the 38.5%?

好的。再確認一次，它有影響到 07 年的指引嗎？就是 38.5% 那個？

It did not.

沒有。

It did not. Okay, great.

沒有。好的，很好。

It did not.

沒有。

And in terms of the number of consultants that Vista and Oxford have, you mentioned it ramped up. Can you give us roughly a number how much we're talking about?

另外，關於 Vista 和 Oxford 的顧問人數，你提到有增加。你能大概給我們一個數字，增幅大概是多少嗎？

I can give you a qualitative. It's like up somewhere between 8% and 10%.

我可以給你一個定性的說法。大概增加在 8% 到 10% 之間。

Okay, great. And again, just a little bit more color on the '07 guidance. Is there any reason that stock-based compensation is going up so much?

好的，很好。再請多補充一點 07 年指引的背景。為什麼以股票為基礎的薪酬（stock-based compensation）會增加這麼多？

Yes, as I mentioned, there were -- I'm sorry, we anticipate, and again, there are a number of contingent options and restricted stock grants which are dependent on shareholder approval that we would anticipate will happen in the second quarter. A great deal of that relates to the Oxford and Vista acquisition, and that's why it's ramping up.

是的，如我提到的，有——抱歉——我們預期，而且再次強調，有若干或有（contingent）的選擇權與限制型股票（restricted stock）授予，需視股東核准而定；我們預期這會在第二季發生。其中很大一部分與 Oxford 和 Vista 的收購案有關，所以才會大幅增加。

Jeff, we went from pre-acquisitions, about 460 full-time corporate support, sales, recruiting people, to post-acquisitions about 1,100 employees. So we need to make sure that we "equitized" our new associates and have everyone aligned with the interest of our shareholders. So we did some awards that have four-year vesting, that are contingent on shareholder approval, as Jim said.

Jeff，我們在收購前大約有 460 名全職的公司支援、銷售、招募人員；收購後約有 1,100 名員工。因此我們需要確保讓新進同仁「股權化」（"equitized"），並讓所有人都與股東利益一致。所以我們做了一些獎勵，採四年歸屬（vesting），並如 Jim 所說，需以股東核准為前提。

Okay, that's fair. And what kind of CapEx should we be looking for in '07?

好的，這合理。那 07 年的資本支出（CapEx）大概應該看多少？

It's probably going to be a little bit less than amortization and depreciation. So, somewhere in the $5.5 million to $6 million range.

可能會略低於攤銷與折舊。所以大概在 550 萬到 600 萬美元之間。

Great. And then just one final, and I'll let somebody else jump in. I missed -- again, this is a guidance question. Interest expense for the first quarter?

很好。最後一個問題，然後我讓其他人接著問。我漏聽了——同樣是指引問題。第一季的利息費用（interest expense）是多少？

I don't know that we gave it, but I'm happy to give it. It's going to be approximately $1.8 million.

我不確定我們是否有提供，但我很樂意提供。大約會是 180 萬美元。

All right. Great. I'll let somebody else jump on. Thanks.

好。很好。我讓其他人接著問。謝謝。

Kevin Foll.

Kevin Foll。

Nice quarter. Congratulations on closing the deals. Just wanted to get a little more color in terms of understanding the seasonality of the gross margin of the Vista and Oxford acquisitions, just so we can make sure we're on the same page. There's some seasonality, right?

這一季表現不錯。恭喜完成交易交割。我想再多了解一些關於 Vista 與 Oxford 收購案的毛利率季節性，以確保我們理解一致。是有一些季節性，對吧？

Right. For most of the staffing industry, you have seasonality because of the reset of SUI, holiday pay for the new year, stuff like that. There will be less seasonality on Vista than there will on, for instance, Oxford or On Assignment, because the docs, or most of them, are independent contractors.

對。對大多數人力派遣產業而言，會有季節性，因為像是 SUI 的重設、新年度的假日薪資等因素。Vista 的季節性會比例如 Oxford 或 On Assignment 來得小，因為醫師——或其中大多數——是獨立承攬人（independent contractors）。

Okay. Can you kind of talk about, just on a rough -- just on an annualized basis for Vista and Oxford, kind of what kind of gross margin is implicit in your yearly guidance, for those divisions?

好的。你能否大致談一下——以粗略、以年化的角度來看——在你們年度指引中，對 Vista 與 Oxford 這兩個事業部隱含的毛利率大概是多少？

I don't know if we broke that out.

我不確定我們是否把那部分拆分出來。

We didn't.

我們沒有。

And I think what I would share with you, Kevin, not giving any further guidance than we have previously given. Is if you look at the kind of presentations that we made when we announced the deals, I think consistent gross margins, what we have told you our long-term objectives are for consolidated gross margin for all of On Assignment, including all of our lines of business, of approximately 30%, and Jim gave guidance of 29% to 29.5% for the first quarter, which takes into effect the normal payroll tax resetting.

Kevin，我想跟你分享的是，在不提供任何超出我們先前已提供之指引的前提下。如果你回頭看我們在宣布交易時所做的那類簡報，我認為毛利率會保持一致；我們也告訴過你，我們對 On Assignment 合併毛利率（包含我們所有業務線）的長期目標約為 30%；而 Jim 也對第一季給出 29% 到 29.5% 的指引，這已反映一般薪資稅重置的影響。

Okay. And will you be breaking out the segment gross margin going forward on a quarterly basis, like you do for the other segments?

好的。那麼，未來你們是否會像其他部門一樣，按季度拆分揭露各部門的毛利率？

We probably will go to four segments going forward. We haven't decided exactly what all we are going to break out, but that probably is going to be something that people will need.

我們未來可能會調整為四個部門。我們尚未決定要拆分揭露哪些項目，但那大概會是大家需要的資訊。

I see. Okay. And -- yes, I guess that's it. Thanks a lot. Take care.

了解。好的。那——是的，我想就這些了。非常感謝。保重。

Jeff Ignall.

Jeff Ignall。

Can you tell me what your pro forma 2006 EBITDA was for the three businesses combined? And then implied in your guidance for '07, what that growth represents? You gave the revenue growth, so I wanted to see if we could get the EBITDA growth as well.

你能告訴我三項業務合併後，2006 年的備考 EBITDA 是多少嗎？另外，在你們對 2007 年的指引中，隱含的成長代表什麼？你們給了營收成長，所以我也想看看是否能取得 EBITDA 的成長。

I don't have the pro forma '06 combined EBITDA in front of me.

我手邊沒有 2006 年合併後的備考 EBITDA。

Okay. How about the implied '06 -- or excuse me, '07 EBITDA growth pro forma? You said 10% to 14% revenue. What would be the implied EBITDA growth in your guidance?

好的。那 2006 年——或抱歉，2007 年備考 EBITDA 的隱含成長呢？你說營收成長 10% 到 14%。在你們的指引中，隱含的 EBITDA 成長會是多少？

Well, it's higher than that. But again, I don't know -- I don't have it in front of me. I don't have the combined pro forma in front of me.

嗯，會高於那個數字。但同樣地，我不確定——我手邊沒有資料。我沒有合併後的備考資料在手邊。

Okay, thanks.

好的，謝謝。

Jeff, the only comment I would make, the reason we didn't even go to that effort is because, as you know, to do a pro forma EBITDA calculation, although we have clean numbers, there are so many adjustments that went into the historical EBITDA because of removing a jet and racehorses and stuff like that from a prior owner and stuff like that, there's just so many different things, that it would be a very lengthy conversation. But I can tell you that the EBITDA year-over-year growth, '07 over '06, is higher than the revenue growth that is projected.

Jeff，我唯一想補充的是，我們之所以甚至沒有去做那個工作，是因為如你所知，要做備考 EBITDA 的計算，即使我們有乾淨的數字，歷史 EBITDA 也包含了非常多調整，例如把前任所有者的私人飛機、賽馬之類的項目剔除等等，牽涉的事情太多了，會變成一段很長的討論。但我可以告訴你，EBITDA 的年對年成長，也就是 2007 年相較 2006 年，會高於所預估的營收成長。

Okay, understood. That makes sense. Thanks a lot.

好的，了解。這很合理。非常感謝。

[OPERATOR INSTRUCTIONS] Josh Vogel.

[接線員指示] Josh Vogel。

I believe you have mentioned in the past, that the gross margins for the Oxford business averaged at about 34%. Can you remind me what they are for the Vista business?

我記得你們過去提過，Oxford 業務的毛利率平均約為 34%。可以提醒我 Vista 業務的毛利率是多少嗎？

We said about 26.9%.

我們說大約是 26.9%。

Okay. Now, on a consolidated basis, I'm looking at about, if you look at '06, Vista was about 11% of revenue, Oxford was 34%, and the legacy business is 55%. Should I expect a similar revenue mix that's built into your '07 guidance?

好的。那麼，以合併口徑來看，如果看 2006 年，Vista 約占營收 11%，Oxford 占 34%，而既有業務占 55%。我是否應該預期你們 2007 年指引中所假設的營收組合也會類似？

Well, again, we haven't broken out the various growth components. Peter said basically they were somewhat similar, so -- .

嗯，再次說明，我們尚未拆分各項成長的組成。Peter 基本上說它們會大致相近，所以——。

Okay. Because I know you mentioned, you know what I'm getting at, is you expect each segment to grow at double-digit rates. But I was curious if you're seeing any one of these business lines projected growth accelerate quicker than the others.

好的。因為我知道你們提到——你知道我想問的是，你們預期每個部門都會以兩位數成長。但我好奇的是，你們是否看到某一條業務線的預期成長會比其他更快加速。

Well, there are a whole number of factors. Strength of the end markets, size of the relative Company, positioning. The only thing that we said, Josh, which I would just reiterate, is that of the three kind of companies, that I think we have Vista growing the fastest.

嗯，這取決於很多因素。終端市場的強弱、相對公司規模、定位等。Josh，我們唯一說過、我也想再重申的是，在這三家公司之中，我認為 Vista 的成長最快。

Right.

對。

Okay. Great. Thank you.

好的。太好了。謝謝你。

[OPERATOR INSTRUCTIONS] There are no further questions at this time, gentlemen.

[接線員指示] 先生們，目前沒有其他問題。

All right. We appreciate your continued attention and interest in our Company, and look forward to reporting our first quarter results. Thank you very much for your attendance.

好的。感謝各位持續關注並對本公司保持興趣，我們也期待向各位報告第一季的業績結果。非常感謝各位的參與。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。您現在可以掛線。