Everforth, Inc. (EFOR) 2011 Q1 法說會逐字稿

Good afternoon. My name is Christie and I will be your conference operator today. At this time, I would like to welcome everyone to the On Assignment Q1 2011 Earnings 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).

下午好。我叫 Christie，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 On Assignment 2011 年第一季財報電話會議。為避免背景雜音干擾，所有線路目前均已設為靜音。在講者致詞結束後，將進行問答環節。（接線員指示）。

I'd now like to hand the program over to Jim Brill, Chief Financial Officer. Please go ahead.

接下來我想把會議交給財務長 Jim Brill。請開始。

Thank you, Christie. 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 judgment of what the future holds.

謝謝你，Christie。在開始之前，我想提醒各位，如同我們每一季都會說明的，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。

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 describe some of these risks and uncertainties in today'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.

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。我們相信這些陳述是合理的，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。我們在今日新聞稿以及向美國證券交易委員會提交的文件中，描述了部分相關風險與不確定性。我們不承擔更新本次電話會議中所作陳述的義務。

I would now like to introduce Peter Dameris, our CEO and President, who will provide an overview of our first quarter results. Peter?

接下來我想介紹我們的執行長兼總裁 Peter Dameris，他將概述我們第一季的業績表現。Peter？

Thank you, Jim. Good afternoon. I would like to welcome everyone to the On Assignment 2011 first quarter earnings conference call. With Jim and me today is Katie Hoffman-Abby, Executive Vice President of our Nurse Travel Group.

謝謝你，Jim。下午好。歡迎各位參加 On Assignment 2011 年第一季財報電話會議。今天與 Jim 和我一同出席的還有我們護理差旅事業群的執行副總裁 Katie Hoffman-Abby。

During our call today, I will give a review of the markets we serve and our operational highlights, followed by a discussion of the performance of our operating segments by myself and Katie. I will then turn the call over to Jim for a more detailed review and discussion of our first quarter financial performance and our estimates for the second quarter of 2011. We will then open 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，接著由我與 Katie 討論各營運部門的表現。之後我會把電話交給 Jim，請他更詳細回顧並說明第一季財務表現，以及我們對 2011 年第二季的估計。最後我們將開放提問。

All markets we served, including nurse travel and physician staffing, improved meaningfully during and exiting the quarter. Once again, we saw particularly strong growth and strength in the IT and Life Science end markets. As we noted during our fourth quarter conference call, our healthcare group started to stabilize during the first quarter and we are confident that the first quarter of 2011 will mark the bottom in revenue decline for our physician and nursing groups.

我們所服務的所有市場，包括護理差旅與醫師派遣，在本季期間及季末均出現顯著改善。我們再次看到 IT 與生命科學終端市場特別強勁的成長與韌性。如同我們在第四季電話會議中提到的，我們的醫療保健事業群在第一季開始趨於穩定；我們有信心 2011 年第一季將是我們醫師與護理事業群營收下滑的谷底。

In the physician group, physician days sold in the last six weeks has increased 25% over the same period in the first quarter. During the first quarter, we also built on the increased demand in nursing and Allied Healthcare that we saw in the fourth quarter. Based on days sold in the physician group and our growth in professionals on billing and nurse travel and Allied Healthcare, we believe absolute revenue growth is possible in 2011 for our physician, nursing and Allied Healthcare groups.

在醫師事業群方面，過去六週的醫師銷售天數較第一季同期間增加 25%。第一季期間，我們也延續第四季在護理與輔助醫療（Allied Healthcare）所見的需求提升。基於醫師事業群的銷售天數，以及我們在計費中的專業人員人數、護理差旅與輔助醫療的成長，我們認為 2011 年我們的醫師、護理與輔助醫療事業群有機會實現絕對營收成長。

Now that revenue growth has returned to these divisions, they will no longer be a drag on our revenue growth, and we firmly believe that this end marked will provide some of the greatest growth opportunities in the latter part of 2011 and beyond.

既然這些部門已恢復營收成長，它們將不再拖累我們的整體營收成長；我們也堅信，這個終端市場將在 2011 年下半年及其後提供一些最大的成長機會。

Consolidated gross margin of 33.3%, up 134 basis points year-over-year, was a new first quarter record for the company.

合併毛利率為 33.3%，年增 134 個基點，創下公司第一季的新紀錄。

Regarding industry dynamics, during and exiting the first quarter, secular trends continued to permit temporary labor to see greater growth prospects than full-time labor. And as the economy improved during the quarter, we continued to see a classic cyclical recovery that benefits professional staffing.

就產業動態而言，在第一季期間及季末，長期結構性趨勢持續使臨時用工相較全職用工擁有更佳的成長前景。隨著本季經濟改善，我們也持續看到典型的景氣循環復甦，有利於專業人力派遣。

As we previously advised, we have developed a five-year strategic plan to get to $1 billion in revenues. The plan requires us to grow approximately 10% compounded annually with approximately $50 million a year in acquired revenues. Our first quarter performance and our second quarter guidance has us on track to realistically have an opportunity to achieve our long-term stated revenue goals.

如同我們先前所告知的，我們已制定一項五年策略計畫，以達成 10 億美元營收規模。該計畫要求我們每年約 10% 的複合成長，並且每年透過併購帶來約 5,000 萬美元的新增營收。我們第一季的表現與第二季的指引，使我們有望務實地把握機會，達成我們長期所述的營收目標。

In addition as we disclosed on February 28, 2011, we closed the acquisition of Valesta, a $20 million clinical research staffing company based in Belgium.

此外，如同我們在 2011 年 2 月 28 日揭露的，我們已完成對 Valesta 的收購；Valesta 是一家總部位於比利時、年營收約 2,000 萬美元的臨床研究人力派遣公司。

Our operating performance in the first quarter of 2011 and our guidance for the second quarter of this year demonstrates that the actions we have taken over the last two years have us very well positioned. By increasing our gross margins, substantially paying down our debt with cash generated from operations, adjusting our non-revenue generating costs and expanding our service offerings, we were able to grow our adjusted EBITDA about 4 times faster than our revenues in the quarter.

我們 2011 年第一季的營運表現以及對今年第二季的指引顯示，過去兩年我們所採取的行動使我們處於非常有利的位置。透過提高毛利率、以營運產生的現金大幅償還債務、調整非創收成本並擴大服務內容，我們在本季使調整後 EBITDA 的成長速度約為營收的 4 倍。

We believe this operating leverage trend will continue to allow us to grow adjusted EBITDA faster than our revenues throughout 2011. As per actions we took to sustain our future positive revenue growth rates, we substantially added to the number of recruiters and sales personnel that we employed. In the first quarter of 2011, we averaged 758 recruiters and sales people. This compares to 580 in the first quarter of 2010.

我們相信，這種營運槓桿趨勢將持續，使我們在 2011 年全年調整後 EBITDA 的成長速度快於營收。為了維持未來正向的營收成長率，我們大幅增加了招募人員與業務人員的數量。2011 年第一季，我們平均有 758 名招募與業務人員。相較之下，2010 年第一季為 580 名。

During the first quarter, we did not acquire any shares of our common stock.

第一季期間，我們未回購任何普通股股份。

Now to the first quarter, revenues in the first quarter of $129.4 million, increased 34.4% over the first quarter of 2010 and 6.8% sequentially. Net income was $3.2 million or $0.08 per diluted shares. Revenue generated outside the United States was $13 million or 10% of consolidated revenues for the quarter versus 6.5% or 6.8% in the first quarter of 2010.

回到第一季，第一季營收為 1.294 億美元，較 2010 年第一季成長 34.4%，並較前一季成長 6.8%。淨利為 320 萬美元，或每股稀釋後盈餘 0.08 美元。本季在美國以外地區所產生的營收為 1,300 萬美元，占合併營收的 10%；相較之下，2010 年第一季為 6.5%（或 6.8%）。

Consolidated gross margin in the first quarter was 33.3%, up from 32% in the first quarter of 2010. Adjusted EBITDA was $10.5 million, or 8.1% of revenue for the quarter, up from $4.4 million, or 4.6% of revenue in the first quarter of 2010. Permanent placement and conversion fees represented 3.3% of revenues for the quarter.

第一季合併毛利率為 33.3%，高於 2010 年第一季的 32%。調整後 EBITDA 為 1,050 萬美元，占本季營收的 8.1%，高於 2010 年第一季的 440 萬美元（占營收 4.6%）。永久派遣與轉換費用占本季營收的 3.3%。

Exiting the quarter, demand for our services strengthened in all divisions. Our weekly assignment revenue, which excludes conversion, billable expenses and direct placement revenues averaged $10.2 million for the last four weeks. This is up 39% from the same period in 2010, which included the Easter holiday, and up 15% from the same period last quarter.

在季末時，我們各事業部對服務的需求均有所增強。我們的每週派遣營收（不含轉換、可計費費用與直接安置營收）在最後四週平均為 1,020 萬美元。這較 2010 年同期間（包含復活節假期）成長 39%，也較上一季同期間成長 15%。

Before turning the call over to Katie, I would like to give you a brief review of operations. I am pleased to report that On Assignment's IT and Engineering segment, Oxford Global Resources, had another excellent quarter. Revenue growth, gross profit, gross margin and EBITDA exceeded our expectations with continued improvement for each month of the quarter.

在把電話交給 Katie 之前，我想先簡要回顧營運狀況。我很高興報告，On Assignment 的 IT 與工程事業部 Oxford Global Resources 再次交出非常出色的一季。在本季每個月持續改善的帶動下，營收成長、毛利、毛利率與 EBITDA 均超出我們的預期。

Revenue for the first quarter of 2011 was $60.1 million, a 10.9% sequential increase over the fourth quarter of 2010 and a 67.9% increase over the first quarter of 2010. This follows a 52.5% increase in the fourth quarter of '10 over the fourth quarter of '09 and a 48.9% increase in the third quarter of '10 over 2009.

2011 年第一季營收為 6,010 萬美元，較 2010 年第四季季增 10.9%，較 2010 年第一季年增 67.9%。此前，2010 年第四季較 2009 年第四季成長 52.5%，而 2010 年第三季較 2009 年成長 48.9%。

In addition, for the fifth quarter in a row, we experienced growth in each of our respective specialties; IT, software and hardware engineering, mechanical and electrical engineering, telecom and healthcare IT.

此外，連續第五個季度，我們在各自的專業領域皆實現成長；包括 IT、軟體與硬體工程、機電工程、電信以及醫療保健 IT。

The 67.9% increase in year-over-year quarterly revenue was due primarily to a significant increase in demand for consultant labor. Our billable consultants On Assignment increased from an average of 641 in the first quarter of 2010 to an average of 992 billable consultants in the first quarter of 2011, an increase of 54.8%. And the average of 992 consultants was an increase of 4.9% over the average of 946 in the fourth quarter of 2010.

季度營收年增 67.9% 主要是由於對顧問人力的需求大幅增加。我們可計費、在案（On Assignment）的顧問人數，從 2010 年第一季平均 641 人增加至 2011 年第一季平均 992 人，增幅為 54.8%。而 992 人的平均值亦較 2010 年第四季平均 946 人增加 4.9%。

The revenue increase in quarter one was also slightly a result of increasing bill rates, which increased approximately 5.9% in the first quarter of 2011 over the first quarter of 2010. The average bill rate in the first quarter of 2011 was $113.16 per hour compared to $106.89 in the first quarter of 2010 and $111.06 in the fourth quarter of 2010.

第一季營收增加也部分來自計費費率的小幅上調；2011 年第一季的計費費率較 2010 年第一季約上升 5.9%。2011 年第一季平均計費費率為每小時 113.16 美元，相較 2010 年第一季每小時 106.89 美元，以及 2010 年第四季每小時 111.06 美元。

Total fees for our perm placement business unit, CenterPoint, were $402,000 in the first quarter compared to $141,000 in the first quarter of 2010 and $248,000 in the fourth quarter of 2010. Total perm fees through CenterPoint represented only 70 basis points of Oxford's total revenues in the quarter.

我們永久派遣（perm placement）事業單位 CenterPoint 的總費用，第一季為 402,000 美元，相較 2010 年第一季 141,000 美元及 2010 年第四季 248,000 美元。透過 CenterPoint 取得的永久派遣費用僅占本季 Oxford 總營收的 70 個基點。

Gross margin for the first quarter of 2011 remained strong at 34.9%, compared to 35.1% for the same period last year. As we've mentioned on previous calls, the bill rates and gross margins of our IT and Engineering segment continue to be among the highest in the staffing industry.

2011 年第一季毛利率維持強勁，為 34.9%，相較去年同期為 35.1%。如同我們在先前電話會議中提到的，我們 IT 與工程部門的計費費率與毛利率持續位居人力派遣產業的高水準。

During the first quarter, we were successful in continuing our strategy of diversifying our business across clients and industries, billing over 800 different client companies. No single client accounted for more than 4.6% of our revenue and revenues from our top 10 clients represented only 13.9% of our total revenues for the quarter. Demand for IT consultants remained strong in the financial services, retail trade, manufacturing and education. We saw an increase in our IT business with food manufacturers and a small decline from utilities in Q1.

第一季期間，我們成功延續跨客戶與跨產業分散業務的策略，對超過 800 家不同客戶公司進行計費。沒有任何單一客戶占我們營收超過 4.6%，而前十大客戶的營收合計僅占本季總營收的 13.9%。金融服務、零售貿易、製造業與教育領域對 IT 顧問的需求仍然強勁。我們在食品製造商的 IT 業務有所增加，而第一季來自公用事業的需求則小幅下滑。

On the engineering side; medical equipment, instrument, semiconductor, communication equipment and appliance manufacturers continued to be our mainstays and we saw an increase in demand from each of these industries. We saw a significant increase in our engineering validation business from pharmaceutical companies compared with the past four quarters, while demand from telecom companies has shown a slow decline over the year.

在工程端方面；醫療設備、儀器、半導體、通訊設備與家電製造商仍是我們的主要客群，我們也看到這些產業的需求皆有所增加。相較過去四個季度，我們來自製藥公司的工程驗證業務顯著成長；而來自電信公司的需求在一年內呈現緩步下滑。

We launched our healthcare IT business in late 2009 and it continues to be our fastest growing area as we continue to add staff and accelerate our penetration in this market. Total revenues from healthcare IT was $3.9 million for the first quarter of 2011, compared to $2.7 million in the fourth quarter of 2010, and only $212,000 in the first quarter of 2010.

我們於 2009 年底推出醫療保健 IT 業務，隨著持續增聘人員並加速滲透該市場，該業務仍是我們成長最快的領域。2011 年第一季醫療保健 IT 的總營收為 390 萬美元，相較 2010 年第四季為 270 萬美元，而 2010 年第一季僅為 212,000 美元。

We ended the first quarter of 2011 with 65 consultants On Assignment compared to 47 at the end of 2010. Our current annualized run rate in this new business is approximately $18 million.

2011 年第一季末，我們在案（On Assignment）的顧問人數為 65 人，相較 2010 年底為 47 人。這項新業務目前的年化運行率（run rate）約為 1,800 萬美元。

From an operational standpoint, our internal staffing consultants continue to drive our business and are a significant investment necessary for current and future growth. The average number of staffing consultants reached a high of 447 in June of '08. That number declined throughout the second quarter, second half of 2008 and all of 2009. Since then, we've intentionally increased our staff from 275 staffing consultants in December of 2009 to 404 at the end of 2010, and 421 at the end of this first quarter.

從營運角度來看，我們內部的人才派遣顧問持續推動業務，且是支撐當前與未來成長所必需的重要投資。派遣顧問的平均人數曾於 2008 年 6 月達到 447 人的高點。該數字在 2008 年第二季、2008 年下半年以及 2009 年全年持續下降。此後，我們有意識地擴編，將派遣顧問人數從 2009 年 12 月的 275 人提升至 2010 年底的 404 人，並在本季末達到 421 人。

As with previous quarters and even with the addition of this new staff, the efficiency of our team continues to improve. The first quarter of 2011 continued the trend of improving productivity, as aggregate new assignments per day surged pass pre-recessionary levels with a sales staff size that is approximately 13% less than our peak in June of '08. The first quarter of 2011 turned out to be the most productive quarter in Oxford's history.

與前幾季相同，即使新增了這些人員，我們團隊的效率仍持續提升。2011 年第一季延續生產力改善的趨勢；在銷售人員規模較 2008 年 6 月高峰約少 13% 的情況下，每日新增派遣案量的合計數已躍升並超越衰退前水準。2011 年第一季成為 Oxford 歷史上生產力最高的一季。

Due to our strong and increasing efficiency, sequential performance over the past five quarters, which is continuing into the second quarter of 2011, we continue to selectively add staffing consultants to our Oxford International, Oxford and Associates, Oxford Healthcare IT, and CenterPoint offices. We monitor our operational activity daily, and we continue to align the size of our staff with current and future economic conditions.

由於我們效率強勁且持續提升，過去五個季度的連續表現（並延續至 2011 年第二季），我們持續有選擇地在 Oxford International、Oxford and Associates、Oxford Healthcare IT 以及 CenterPoint 辦公室增聘派遣顧問。我們每日監控營運活動，並持續使人員規模與當前及未來的經濟情勢相匹配。

To summarize, our IT and Engineering segment has seen a steady increase in the number of consultants On Assignment and increases in average weekly sales since September of '09, reflecting the overall IT staffing market and the economy in general. The IT market projections for 2011 and 2012 continue to be strong as the staffing industry analysts are predicting that the US IT staffing market in 2012 will surpass its 2000 peak of $21.5 billion in revenue, set at the height of the dot-com boom.

總結而言，自 2009 年 9 月以來，我們 IT 與工程部門在案（On Assignment）顧問人數與平均每週銷售額均穩步增加，反映整體 IT 派遣市場及整體經濟的走勢。對於 2011 年與 2012 年的 IT 市場預測仍然強勁；產業分析師預期，美國 IT 派遣市場在 2012 年的規模將超越 2000 年網路泡沫高峰期所創下的 215 億美元營收峰值。

In terms of current quarter activity, we continue to see strong demand for our services, which is consistent with our Oxford Index, our forward-looking quarterly survey, which indicates that clients anticipate increasing their temp hiring in the second quarter of 2011 and in almost all our specialty areas.

就本季的業務動能而言，我們持續看到對我們服務的強勁需求；這與我們的 Oxford 指數（前瞻性的季度調查）一致，該調查顯示客戶預期在 2011 年第二季以及我們幾乎所有專業領域中，將增加臨時人力聘用。

Turning to our Life Science business, revenue grew on an absolute dollar basis over the fourth quarter to $32.9 million, which represents a 6.7% growth sequentially and a 43% increase year-over-year. Revenues attributable to the Valesta acquisition, which took place late in the quarter, were approximately $2 million. Absent Valesta, revenues rose slightly over the prior quarter in 2010.

接著談我們的生命科學業務，營收以絕對金額計較第四季成長至 3,290 萬美元，季增 6.7%，年增 43%。本季末完成的 Valesta 併購所貢獻的營收約為 200 萬美元。若不計 Valesta，營收較 2010 年前一季小幅上升。

The improved operating environment of the Legacy Scientific Division combined with the contribution of the Cambridge group and Sharpstream Life Sciences acquisition, helped stabilize what is historically a rebuilding period. Revenues from the Cambridge and Sharpstream acquisitions were $3 million. Excluding all acquisitions, revenues grew 20.9% year-over-year.

Legacy Scientific 事業部營運環境的改善，加上 Cambridge 團隊以及 Sharpstream Life Sciences 併購案的貢獻，有助於穩定這段歷來屬於重建期的表現。來自 Cambridge 與 Sharpstream 併購案的營收為 300 萬美元。若排除所有併購因素，營收年增 20.9%。

On a divisional basis, US operations generated $26.3 million in revenue; essentially flat sequentially and up 35.7% year-over-year. Excluding acquisitions, US operations increased 24.4% over the prior year.

以事業部別來看，美國營運產生 2,630 萬美元營收；季比基本持平，年增 35.7%。若排除併購，美國營運較前一年增加 24.4%。

Foreign revenues were $6.6 million for the quarter, increasing 47.1% sequentially and 82% year-over-year. Excluding Valesta, foreign revenues decreased 2.1% sequentially and excluding acquisition, foreign revenues were up 3.2% year-over-year.

本季海外營收為 660 萬美元，季增 47.1%，年增 82%。若排除 Valesta，海外營收季減 2.1%；若排除併購因素，海外營收年增 3.2%。

Gross margin for the Life Science segment was 34.2%, decreasing 199 basis points sequentially and increasing 255 basis points year-over-year. We attribute the sequential decrease in gross margin to the reset of payroll taxes for the 2011 fiscal year. On a divisional basis, US gross margin was 32.1%, decreasing 257 basis points sequentially and increasing 126 basis points year-over-year. Foreign gross margin was 42.7%, increasing 265 basis points sequentially, and increasing 657 basis points year-over-year.

生命科學部門毛利率為 34.2%，季減 199 個基點，年增 255 個基點。我們將毛利率的季比下滑歸因於 2011 會計年度薪資稅的重置。以事業部別來看，美國毛利率為 32.1%，季減 257 個基點，年增 126 個基點。海外毛利率為 42.7%，季增 265 個基點，年增 657 個基點。

Moving on to the second quarter of 2011, demand for contract, contingent, retained search services throughout the US and Europe remained steady. The business climate in most of our markets continues to improve and the integration of Valesta is on schedule.

進入2011年第二季，美國與歐洲對合約制、臨時性與保留式獵才服務的需求仍維持穩定。我們多數市場的商業環境持續改善，Valesta 的整合也按計畫進行。

As for Valesta, this acquisition positions us well in the European clinical research market. Clinical research remains a key focus area, which offers critical skill disciplines, high bill rates, long-term contract assignments, permanent placement activity and attractive gross margins. We are confident the addition of Valesta along with Cambridge Group will continue to enhance our competitive position in this exciting field and accelerate profitable growth. As we go forward into the second quarter, our focus within the Life Science Group continues to be on maintaining momentum throughout with consistent emphasis on employee productivity.

至於 Valesta，這項收購使我們在歐洲臨床研究市場具備良好布局。臨床研究仍是關鍵聚焦領域，提供關鍵技能專業、高計費費率、長期合約派遣、永久職缺媒合活動以及具吸引力的毛利率。我們有信心，加入 Valesta 並結合 Cambridge Group，將持續強化我們在這個令人振奮領域的競爭地位，並加速獲利成長。展望第二季，我們在生命科學事業群內的重點仍是維持動能，並持續一致地強調員工生產力。

Now, I would like to turn to Allied Healthcare. Revenues for the Allied Healthcare division were $10.1 million, which represents a 1% increase sequentially and a 6% increase year-over-year. We attribute the sequential and year-over-year revenue increases to improved operating environment. While the operating environment showed signs of stabilization and growth in the quarter, results were constrained by the following specific factors; poor weather, holidays, clients' continued focus on cost containment, and an economic recovery that is not consistent nationwide. Certain regions have yet to benefit from the end of the recession.

現在，我想談談 Allied Healthcare。Allied Healthcare 事業部營收為 1,010 萬美元，較前一季增加 1%，較去年同期增加 6%。我們將營收的季增與年增歸因於營運環境改善。雖然本季營運環境出現穩定與成長跡象，但成果仍受下列特定因素限制：惡劣天候、假期、客戶持續聚焦成本控管，以及全國經濟復甦不一致。部分地區尚未受惠於景氣衰退的結束。

Allied Healthcare gross margins for the quarter were 31.3%, which represents a 134 basis point sequential decrease and an increase of 50 basis points year-over-year. The sequential decrease in gross margins was primarily attributable to the reset of payroll taxes for the 2011 fiscal year.

Allied Healthcare 本季毛利率為 31.3%，較前一季下降 134 個基點，較去年同期增加 50 個基點。毛利率的季減主要歸因於 2011 會計年度薪資稅的重設。

Turning to the second quarter of 2011, the healthcare markets in which we operate are showing signs of improvement. Demand for core clinical lab, local nursing, Allied Travel and Health Information Management professionals has stabilized and is growing. In addition, we are seeing improvements in permanent placement services associated with Health Information Management and newer Allied Direct Search business lines. As we have done in other divisions, we continue to respond to the current soft healthcare climate by focusing on new business development, gross margin preservation and cost containment.

展望2011年第二季，我們所營運的醫療照護市場正顯示改善跡象。對核心臨床實驗室、在地護理、Allied Travel 以及健康資訊管理（Health Information Management）專業人才的需求已趨於穩定並正在成長。此外，我們也看到與健康資訊管理及較新的 Allied Direct Search 業務線相關的永久職缺媒合服務有所改善。如同其他事業部，我們持續透過聚焦新業務開發、維持毛利率與成本控管，來因應目前偏疲弱的醫療照護景氣。

Now let's turn to our physician staffing segment, VISTA Staffing Solutions. As I previously mentioned, we believe VISTA, and the physician staffing industry as a whole, had hit bottom and started back up. We base this on the fact that our inventory of days available to refill continues to trend upward. After hitting bottom in January of '11, inventory of days rose sharply, and ended the quarter up 7.2% above Q4 2010. This trend has continued into April.

接著談我們的醫師派遣業務部門 VISTA Staffing Solutions。如我先前提到的，我們相信 VISTA 以及整體醫師派遣產業已觸底並開始回升。我們的依據是，可供補填的「可用天數」庫存持續呈上升趨勢。在2011年1月觸底後，可用天數庫存大幅上升，並在本季結束時較2010年第四季高出 7.2%。此趨勢在4月仍持續。

In addition, days filled, days into which we book doctors, increased 19.2% in Q1 2011 over Q4 2010 and 3.5% over Q1 2010. Physician staffing has a longer sales cycle. Typically there is a three to five month lag between the time days are booked and the time doctors actually go to work. As a result, this improved production does not show up in Q1 results. Here are more details about VISTA's Q1 financial performance.

此外，已填補天數（亦即我們安排醫師上工的天數）在2011年第一季較2010年第四季增加 19.2%，較2010年第一季增加 3.5%。醫師派遣的銷售週期較長。通常從天數被預訂到醫師實際上工之間，會有三到五個月的落後期。因此，這些改善的產出不會反映在第一季的結果中。以下是 VISTA 第一季財務表現的更多細節。

Q1 2011 revenues of $16.5 million, down 5.7% from Q4 2010, and down 12.5% from Q1 2010. VISTA's gross margin was 32.1% in Q1. This is a decline of 204 basis points from Q4 2010, but an increase of 34 basis points year-over-year. The quarter to quarter decline is due to a favorable medical malpractice accrual in the fourth quarter following a year in actuarial study.

2011年第一季營收為 1,650 萬美元，較2010年第四季下降 5.7%，較2010年第一季下降 12.5%。VISTA 第一季毛利率為 32.1%。這較2010年第四季下降 204 個基點，但較去年同期增加 34 個基點。季對季下滑係因第四季在完成一年的精算研究後，出現有利的醫療疏失（malpractice）準備金提列調整。

Fill rate was down slightly for the quarter and year-over-year, but at 54.2% it's still significantly higher than the historical norms in the Locum Tenens industry. Our bill rate of $184 an hour, a 3.1% drop from Q4 2010, but a 1.7% increase over Q1 2010.

本季與去年同期的填補率略為下降，但在 54.2% 的水準，仍顯著高於臨時醫師（Locum Tenens）產業的歷史常態。我們的計費費率為每小時 184 美元，較2010年第四季下降 3.1%，但較2010年第一季增加 1.7%。

Our average number of working physicians for the quarter was 246, down 6.1% sequentially and 12% year-over-year. Our international placement division earned $260,000 in gross profits in Q1 and VISTA physician search and consulting generated $311,000 in revenues.

本季平均在職醫師人數為 246 人，較前一季下降 6.1%，較去年同期下降 12%。我們的國際派遣事業部在第一季創造 26 萬美元毛利，而 VISTA 醫師搜尋與顧問業務則產生 31.1 萬美元營收。

In addition to our improved productivity, there are positive signs in the industry. The poll survey on the Locum Tenens industry just published by the Staffing Industry Analyst is one. SIA has been unable to publish this survey for the last several quarters due to low participation by Locum Tenens companies. We believe that companies refuse to participate when their performance was bad, so the very fact that companies felt positive enough to participate is a bellwether for the industry.

除了我們生產力提升之外，產業也出現正面訊號。其中之一是《Staffing Industry Analyst》剛發布的臨時醫師（Locum Tenens）產業民調。由於臨時醫師公司參與度偏低，SIA 在過去幾個季度一直無法發布這份調查。我們認為，當公司表現不佳時會拒絕參與，因此公司願意以更正面的心態參與這件事本身，就是產業的領先指標。

The survey predicts a 4% growth in the industry for 2011, but includes an interesting caution. Staffing Industry Analysts report that while hospitals are not willing to cut staff further, a good sign for us, the slow recovery coupled with healthcare reform may complicate things. Healthcare organizations are still seeing increased levels of uninsured admissions and decreased levels of commercial admissions and they continued to find it easier than normal to recruit physicians on their own throughout Q1 2011.

該調查預測2011年產業成長 4%，但也提出一項值得注意的警示。Staffing Industry Analysts 指出，雖然醫院不願再進一步裁減人力，這對我們是好消息，但緩慢的復甦加上醫療改革可能使情勢更為複雜。醫療機構仍面臨無保險入院比例上升、商業保險入院比例下降的情況，且在2011年第一季期間，他們持續發現自行招募醫師比平常更容易。

They note -- the group notes that healthcare reforms should push more people on to insurance rolls and increase demand for care. However, if accountable care organizations succeed in giving healthcare organizations an incentive to provide pure services as HMOs did in the 1990s, demand for staffing will stay depressed. To succeed in this market, SIA reports staffing companies must create a stronger value proposition for healthcare organizations.

他們指出——該團體指出，醫療改革應會讓更多人納入保險體系並提高醫療照護需求。然而，若責任照護組織（Accountable Care Organizations）成功讓醫療機構獲得誘因、如同1990年代 HMO 那樣提供「純服務」，則對派遣人力的需求將持續低迷。SIA 表示，要在此市場成功，派遣公司必須為醫療機構建立更強的價值主張。

This market intelligence is completely consistent with our experience. We are working to become a strategic staffing partner, providing premium service and a 100% fill rate to a smaller number of clients. A large nationwide hospital management company recently selected us as one of the two preferred vendors and will be shifting all contract physician staffing over accordingly. The organization in turn will receive top priority response from us.

這些市場情報與我們的經驗完全一致。我們正努力成為策略性人力派遣夥伴，為較少數的客戶提供高端服務與 100% 填補率。一家全國性大型醫院管理公司近期選定我們為兩家優先供應商之一，並將相應地把所有合約醫師派遣業務轉移給我們。該組織也將因此獲得我們最高優先等級的回應。

This valuation proposition is also a good defense against encroachment of low margin vendor management systems in the physician staffing space. Healthcare organizations are realizing that physician staffing is too critical to the organization's success and client vendor and communication is too important to successful placements to give away control of physician recruitment and placement to a third party. So to date, we have not seen large awards to vendor management service companies.

這項價值主張同時也是對抗醫師派遣領域中低毛利供應商管理系統（VMS）滲透的良好防禦。醫療機構正意識到，醫師派遣對組織成功至關重要，而客戶、供應商與溝通對成功媒合同樣重要，因此不應將醫師招募與派遣的控制權交由第三方。因此截至目前，我們尚未看到供應商管理服務公司獲得大型標案。

Finally, in a report released April 17th, the American Medical Group Association announced the slightly improving economy has led to a slightly higher turnover rate among physicians employed by American Medical Group Association member organizations. More than 8 in 10, 83% of the group surveyed said they will hire significantly more primary care doctors this year and 79% said the same for specialists according to the report. Increased competition physicians bodes very well for us.

最後，在4月17日發布的一份報告中，美國醫療集團協會（American Medical Group Association）宣布，略為改善的經濟已使 AMGA 會員機構所雇用醫師的離職率略為上升。報告指出，受訪團體中超過 10 人中有 8 人（83%）表示今年將大幅增加聘用基層照護醫師，另有 79% 表示專科醫師亦同。醫師競爭加劇對我們非常有利。

There is no question we are living in interesting times. And with that, I will turn the call over to Katie Abby, Executive Vice President in charge of our Nurse Travel business. Welcome to the call, Katie.

毫無疑問，我們正生活在一個充滿變化的時代。接下來，我將把電話會議交給負責我們護理師差旅業務的執行副總裁 Katie Abby。Katie，歡迎加入本次電話會議。

Thank you, Peter. I am pleased to report a strong performance for Nurse Travel in first quarter, the result of hard work during a challenging 2010 to position our division for success in a recovering economy.

謝謝你，Peter。我很高興報告護理師差旅業務在第一季表現強勁，這是我們在充滿挑戰的 2010 年努力耕耘的成果，使本事業部在經濟復甦中具備成功的定位。

Our first quarter results confirm our ongoing commitments delivering excellent service to our providers and clients and reflect the investments and structural changes we made last year. For the quarter, revenue of $9.7 million was a sequential increase of 14.3% and a year-over-year increase of 7.7%. Gross margin of 25.2% represented 68 basis point sequential decrease, but a 284 basis point increase year-over-year. The 68 basis point decline sequentially came from the labor disruption revenue reported in fourth quarter of last year. Adjusting for this revenue, our gross margin would have increased 16 basis points even with the seasonal increase in employment taxes.

我們第一季的結果確認了我們持續致力於為供應端人員與客戶提供卓越服務，也反映了我們去年所做的投資與結構性調整。本季營收為 970 萬美元，較前一季成長 14.3%，較去年同期成長 7.7%。毛利率為 25.2%，較前一季下降 68 個基點，但較去年同期上升 284 個基點。毛利率較前一季下降 68 個基點，主要來自去年第四季所認列的勞動中斷相關營收。若調整該項營收，即使就業稅費因季節性上升，我們的毛利率仍將增加 16 個基點。

The sequential increase in our revenue is primarily driven by a 35% increase in the number of open orders we received from both traditional partners and new clients. We billed 202 clients this quarter versus 173 last quarter. That increase led to a 27% increase in the number of travelers on assignment, a 22% increase in the number of booked weeks and a 35% increase in the number of confirmed assignments.

我們營收的季增主要由開放職缺訂單數量增加 35% 所帶動，來源包括既有傳統合作夥伴與新客戶。本季我們對 202 家客戶開立帳單，而上一季為 173 家。該增長帶動派遣中的差旅人員數增加 27%、已預訂週數增加 22%，以及已確認派遣案數增加 35%。

The average hours worked for traveler increased slightly 1.1%, while sequentially the average bill rate decreased by $0.84 per hour. The current business environment is highly competitive and we must address service needs of our customers faster and more efficiently than we have in the past. We have begun the process of adding more automation to our internal processes to ensure that we are as efficient as possible in our administrative areas. As a result, we saw an increase in productivity of 9% over the same quarter last year and we continue to monitor our expenses.

差旅人員的平均工時小幅增加 1.1%，但平均計費費率較前一季每小時下降 0.84 美元。目前的商業環境競爭激烈，我們必須比過去更快速、更有效率地滿足客戶的服務需求。我們已開始在內部流程中導入更多自動化，以確保在行政作業領域盡可能高效率。因此，我們的生產力較去年同期提升 9%，並持續監控各項費用。

Analyzing key factors like revenue growth, gross margin and SG&A along with the increase in demand from existing and new clients, we see a significant opportunity for growth. We believe this is a very good time to invest in the future by hiring great people who will help us grow the business in high potential and revenue growth territories.

綜合分析營收成長、毛利率與銷售、一般及行政費用（SG&A），以及既有與新客戶需求的增加，我們看到顯著的成長機會。我們認為現在是投資未來的良好時機，透過招募優秀人才，協助我們在高潛力且營收成長的區域擴大業務。

Looking ahead, we expect to see continued increase in demand along with gains in market share. Staying focused on the current and future opportunities in our business, we will continue to pursue opportunities for productivity improvements. With the solid performance this quarter, we are well on our way to achieving our 2011 goals.

展望未來，我們預期需求將持續增加，並伴隨市占率提升。在聚焦於當前與未來的業務機會之下，我們將持續尋求提升生產力的機會。憑藉本季穩健的表現，我們正穩步邁向達成 2011 年目標。

Here is a recap of some important additional metrics for the quarter. Average hours worked per nurse increased sequentially to 40.3 from 39.9 and decreased slightly year-over-year. The percentage revenue from our top 10 clients was 32.8% compared with 30.4% in the fourth quarter of 2010 and 38.2% in first quarter 2010. We made it a priority last year to increase the diversification of our client base and as a result generated more revenue with more clients in the first quarter of this year.

以下為本季其他一些重要指標摘要。每位護理師的平均工時較前一季由 39.9 增至 40.3，但較去年同期略為下降。前 10 大客戶貢獻的營收占比為 32.8%，相較於 2010 年第四季的 30.4% 與 2010 年第一季的 38.2%。去年我們將提升客戶基礎多元化列為優先事項，因此今年第一季我們與更多客戶創造了更多營收。

The average number of working nurses in first quarter was 279. It was 219 in the fourth quarter of 2010 and 259 in first quarter last year. And finally, we continued to refine our financial controls to drive gross margin improvement. And I will now turn the call over to Jim Brill. Jim?

第一季平均在職護理師人數為 279 人。2010 年第四季為 219 人，去年第一季為 259 人。最後，我們持續精進財務控管，以推動毛利率改善。接下來我將把電話會議交給 Jim Brill。Jim？

Thanks, Katie. As Peter mentioned, consolidated revenues for the quarter were $129.4 million, up 34.4% from the first quarter of 2010. There were approximately 64 billing days in this quarter, 62 in the fourth quarter, and approximately 63 in the first quarter of 2010. However, for Nurse Travel, there were 90 billing days this quarter, 92 last quarter and 90 in the first quarter of 2010.

謝謝你，Katie。如 Peter 所提，本季合併營收為 1.294 億美元，較 2010 年第一季成長 34.4%。本季約有 64 個計費日，第四季為 62 個，2010 年第一季約為 63 個。不過，就護理師差旅業務而言，本季有 90 個計費日，上季為 92 個，2010 年第一季為 90 個。

Foreign currency had a negligible impact on revenue relative to last year's fourth quarter (sic) and an $80,000 positive impact on revenue relative to the fourth quarter.

外幣對營收的影響相較於去年第四季（原文如此）可忽略不計；相較於第四季，外幣對營收有 8 萬美元的正向影響。

Now let me address some of the variances and their related explanations to the extent Peter or Katie has not. In Life Sciences, the bill rate was up 5% from the fourth quarter, in part due to the Valesta acquisition, and the bill pay margin increased. Relative to the first quarter of 2010, the bill rate was up 7%, again in part related to Valesta, and the bill pay margin decreased slightly. In Allied Healthcare, the bill rate relative to the fourth quarter was up 2% as was the bill pay margin. Relative to the first quarter 2010, Allied Healthcare's bill rate was up 4% and the bill pay margin expanded.

接下來，我將就 Peter 或 Katie 尚未說明的部分，說明一些差異及其相關原因。在生命科學事業中，計費費率較第四季上升 5%，部分原因為 Valesta 併購案，且計費與薪資之間的利差（bill pay margin）增加。相較於 2010 年第一季，計費費率上升 7%，同樣部分與 Valesta 有關，但 bill pay margin 略為下降。在輔助醫療（Allied Healthcare）事業中，計費費率相較第四季上升 2%，bill pay margin 亦上升。相較於 2010 年第一季，Allied Healthcare 的計費費率上升 4%，且 bill pay margin 擴大。

As Peter mentioned, the bill rate in the physician business was down from the fourth quarter and the bill pay margin contracted. Relative to the first quarter of 2010, the bill rate expanded. However, the bill pay margin contracted. In Nurse Travel as Katie mentioned, the bill rate contracted by about 1% from the fourth quarter. However, the bill pay margin expanded and relative to the first quarter 2010, the bill rate contracted slightly. However, the bill pay margin increased. Peter also mentioned that the bill rate in the IT and Engineering business expanded over the fourth quarter and the first quarter 2010. However, the bill pay margin contracted in both periods.

如 Peter 所提，醫師業務的計費費率較第四季下降，且 bill pay margin 收窄。相較於 2010 年第一季，計費費率擴大。然而，bill pay margin 收窄。在護理師差旅業務方面，如 Katie 所提，計費費率較第四季約下降 1%。然而，bill pay margin 擴大；相較於 2010 年第一季，計費費率小幅下降。然而，bill pay margin 上升。Peter 也提到，IT 與工程業務的計費費率相較第四季及 2010 年第一季均有所擴大。然而，bill pay margin 在兩個期間皆收窄。

Conversion on direct hire revenues totaled $4.2 million in the quarter, or 3.3% of revenue, as compared to $4.1 million, or 3.4% of revenue in the fourth quarter and $2.2 million, or 2.2% of revenue in the first quarter of 2010.

本季直接聘僱（direct hire）營收的轉換（conversion）合計為 420 萬美元，占營收 3.3%；相較之下，第四季為 410 萬美元，占營收 3.4%，2010 年第一季為 220 萬美元，占營收 2.2%。

Total SG&A expense for the first quarter was $36.8 million, or 28.4% of total revenues, which is up from $35.4 million excluding goodwill impairment, or 29.2% last quarter and $29.8 million, or 31% in the first quarter of 2010. The increase from last quarter is in part related to an increase in revenue generating headcount, an increase in commissions related to increased revenue and an increase of $250,000 in expenses associated with acquisitions.

第一季 SG&A 總費用為 3,680 萬美元，占總營收 28.4%；高於上季（扣除商譽減損）3,540 萬美元、占比 29.2%，亦高於 2010 年第一季 2,980 萬美元、占比 31%。較上季增加的部分原因包括：創造營收的人力編制增加、因營收增加而帶動的佣金增加，以及與併購相關費用增加 25 萬美元。

There were two large offsetting items in the quarter; a total of approximately $550,000 in acquisition-related expenses and approximately $500,000 in foreign currency transaction gains. Also included in SG&A in the quarter was $400,000 in amortization, and $1.5 million of depreciation. Our interest expense was $700,000. Our tax rate was 44.4% and we had a net income of $3.2 million, or $0.08 per share.

本季有兩項金額較大且相互抵銷的項目：併購相關費用合計約 55 萬美元，以及外幣交易收益約 50 萬美元。本季 SG&A 亦包含 40 萬美元的攤銷費用，以及 150 萬美元的折舊費用。利息費用為 70 萬美元。稅率為 44.4%，淨利為 320 萬美元，或每股 0.08 美元。

We believe it's meaningful to compare EBITDA and adjusted EBITDA when comparing the current quarter's results to prior quarters. As outlined in today's press release, EBITDA for the quarter was $8.4 million. Excluding equity-based compensation expense of approximately $1.6 million and acquisition-related expenses of $550,000, adjusted EBITDA was $10.5 million, or 8.1% of revenue.

我們認為，在將本季業績與前幾季比較時，比較 EBITDA 與調整後 EBITDA 具有意義。如同今日新聞稿所述，本季 EBITDA 為 840 萬美元。扣除約 160 萬美元的股權基礎薪酬費用以及 55 萬美元的併購相關費用後，調整後 EBITDA 為 1,050 萬美元，約占營收的 8.1%。

We ended the quarter with cash and cash equivalents of $15.8 million. After borrowing $13 million to support the acquisition of Valesta, our bank debt stands at $78.5 million. We generated $6.3 million in cash flow from operations. CapEx was approximately $2.6 million, of which approximately $1.5 million related to our new corporate headquarters. This is up from $2.1 million last quarter and $1.3 million in the first quarter 2010.

本季結束時，我們的現金及約當現金為 1,580 萬美元。為支應收購 Valesta 而借款 1,300 萬美元後，我們的銀行借款餘額為 7,850 萬美元。我們自營運活動產生 630 萬美元的現金流量。資本支出（CapEx）約為 260 萬美元，其中約 150 萬美元與我們新的企業總部相關。此金額高於上季的 210 萬美元，以及 2010 年第一季的 130 萬美元。

Net accounts receivable was $74.9 million at the end of the first quarter, and day sales outstanding were 50 days on a pro forma basis without Valesta versus 47 last quarter and 48 days in the first quarter of last year.

第一季末淨應收帳款為 7,490 萬美元；以不含 Valesta 的備考（pro forma）基礎計算，應收帳款週轉天數（DSO）為 50 天，相較上季為 47 天、去年第一季為 48 天。

Now turning to productivity, which we define as quarterly gross profit generated per staffing consultant. For the first quarter, we averaged 758 staffing consultants, and gross profit per staffing consultant was $57,000, down slightly from the fourth quarter and up from $53,000 in the first quarter of 2010.

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。第一季我們平均有 758 位派遣顧問，每位派遣顧問的毛利為 5.7 萬美元，較第四季略降，但高於 2010 年第一季的 5.3 萬美元。

The Life Sciences segment generated $74,000 in gross profit per staffing consultant, down from $77,000 last quarter. The Healthcare segment generated $49,000 in gross profit per staffing consultant, up from $48,000 last quarter. The Physician Staffing segment generated $68,000 in gross profit per staffing consultant, down from $71,000 last quarter. And the IT and Engineering segment generated $51,000 in gross profit per staffing consultant even with last quarter.

生命科學事業部每位派遣顧問創造 7.4 萬美元毛利，低於上季的 7.7 萬美元。醫療照護事業部每位派遣顧問創造 4.9 萬美元毛利，高於上季的 4.8 萬美元。醫師派遣事業部每位派遣顧問創造 6.8 萬美元毛利，低於上季的 7.1 萬美元。IT 與工程事業部每位派遣顧問創造 5.1 萬美元毛利，與上季持平。

Looking at the second quarter revenue expectations, it continues to be difficult to estimate what will happen to revenues because of the worldwide economy. However, the labor markets do seem to be getting better, and considering normal seasonal trends, we currently estimate consolidated revenues of $142 million to $145 million for the quarter ending June 30, 2011.

就第二季營收展望而言，由於全球經濟因素，仍然難以估計營收將如何變化。不過，勞動市場似乎正在改善；考量正常的季節性趨勢，我們目前估計截至 2011 年 6 月 30 日止季度的合併營收為 1.42 億至 1.45 億美元。

We are estimating consolidated gross margin of approximately 34%, SG&A of approximately $39 million, excluding acquisition cost, equity-based compensation expenses of approximately $1.6 million, approximately $600,000 in amortization of intangible assets, and depreciation of approximately $1.6 million.

我們估計合併毛利率約為 34%，SG&A 約為 3,900 萬美元（不含併購成本），股權基礎薪酬費用約 160 萬美元，無形資產攤銷約 60 萬美元，折舊約 160 萬美元。

We estimate net income of $4.8 million to $5.4 million, earnings per share of $0.13 to $0.14, an effective tax rate of about 43%, adjusted EBITDA is estimated to range from $13 million to $14 million.

我們估計淨利為 480 萬至 540 萬美元，每股盈餘為 0.13 至 0.14 美元，有效稅率約 43%；調整後 EBITDA 估計介於 1,300 萬至 1,400 萬美元。

And now I'll turn the call back to Peter for some closing remarks before we open it up for questions.

現在我把電話交回給 Peter，在我們開放提問前請他做一些結語。

Thank you, Jim. We believe that we are well positioned to take advantage of what we believe will be historic, secular and cyclical growth for the staffing industry over the next three to five years. While the entire On Assignment team is very proud of our performance, we remain focused on regaining our peak levels of profitability. 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. I would like to now open the call up to participants for questions. Operator?

謝謝你，Jim。我們相信，我們已做好充分準備，把握我們認為未來三到五年派遣人力產業將出現的歷史性、結構性與景氣循環性成長。雖然整個 On Assignment 團隊都為我們的表現感到非常自豪，我們仍專注於重回獲利能力的高峰水準。我想再次感謝我們眾多忠誠、敬業且才華洋溢的員工，正是他們的努力讓我們走到今天。現在我想開放讓與會者提問。接線員？

(Operator Instructions). Your first question comes from the line of Tobey Sommer with SunTrust.

（接線員指示）。第一個問題來自 SunTrust 的 Tobey Sommer。

Thanks, Peter. I had a question for you about your last comment focused on attaining prior peak margin. What margin do you think you can get to this go around?

謝謝你，Peter。我想就你最後一段談到要達到先前的毛利率高峰提個問題。你認為這次可以達到什麼樣的毛利率水準？

Well, Tobey, I am going to quote you a quarterly adjusted EBITDA margin versus annualized one, because the margin is always down in the first quarter because of SUI reset. But if memory serves me correctly, the third quarter of '08 was our highest margin, I think it was about 11.8% and at that time our margins, our consolidated gross margins were in the 32% range. So, we would clearly be disappointed if we weren't able to exceed that again because we have higher margins and we have done some things to become a little more efficient with our non-revenue generating fixed costs. That gives you a little bit of guidance, I think north of 11.8% is where we are targeted.

Tobey，我會引用季度調整後 EBITDA 利潤率，而不是年化的，因為第一季的利潤率通常會因 SUI 重設而偏低。但如果我沒記錯，2008 年第三季是我們利潤率最高的一季，我想大約是 11.8%，而當時我們的利潤率、我們的合併毛利率大約在 32% 左右。因此，如果我們無法再次超越那個水準，我們顯然會感到失望，因為我們現在的毛利率更高，而且我們也做了一些事情，讓非營收產生的固定成本更有效率。我想這能提供一些指引：我們的目標是高於 11.8%。

And that -- again an adjusted EBITDA number?

而那個——再確認一次，是調整後 EBITDA 的數字？

Yes, adding back only non-cash charges for 123R expense and acquisition cost.

是的，只加回 123R 費用與併購成本等非現金費用。

Okay. Jim, I had a numbers question for you, just kind of a detail. The $0.02 or roughly $0.5 million dollars in professional fees for the acquisition, does that flow through and is that included in the quarterly results that you reported?

了解。Jim，我有個數字上的問題，算是細節。併購的專業費用 0.02 美元或約 50 萬美元，這筆是如何反映的？是否已包含在你們所報告的季度結果中？

Yes, it's all up in SG&A.

是的，全部都列在 SG&A 裡。

Okay. So, ex that we are talking about a $0.10 number.

好的。所以，扣除那筆之後，我們談的是 0.10 美元的數字。

Yes, depending on the tax, it's obviously tax affected so...

是的，視稅負而定；它顯然會受到稅負影響，所以……

Okay.

了解。

You would have the tax affect it to get it to whatever the EPS number is. But...

你需要把稅負影響納入，才能得到最終的每股盈餘數字。不過……

Fair enough.

可以。

It's included, but then we add it back.

它已包含在內，但我們之後會把它加回。

So we excluded it for adjusted EBITDA, but we did not exclude it for EPS and if you exclude it for EPS, as Jim said, you got a tax effect.

所以我們在調整後 EBITDA 中把它排除，但在 EPS 中沒有排除；如果你在 EPS 中排除它，如 Jim 所說，就會有稅負影響。

Okay. And then, one more question I will get back in the queue. Now that we've got even the businesses that had been struggling up until recently moving in the right direction and signs pointing to momentum there, Peter what are you focused on now, is it less of a market concern, and just kind of keeping your eye on internal operations to make sure you are focused on the daily stuff that makes the staffing business and then may be adding to it, is it more M&A focused at this stage?

了解。再問最後一個問題，我之後再回到隊列。現在即使是那些直到最近都還在掙扎的業務也開始往正確方向走，且跡象顯示動能正在形成。Peter，你現在的重點是什麼？是否比較不擔心市場面，而是更專注於內部營運，確保你們把派遣業務每天該做的事情做好，並可能在此基礎上加碼？還是說在這個階段更偏向併購（M&A）？

Well, I'll answer a part of it and then I'll let Katie answer a little bit about what she is focused on in driving revenues on the nursing side. We are interested in continuing our thoughtful and disciplined acquisition plan. I don't think it's on the nursing side. I believe it would continue to be on the physician and clinical research side or health IT, or health information management.

我先回答其中一部分，接著我會讓 Katie 談談她在護理端推動營收成長的重點。我們有興趣持續推進審慎且有紀律的併購計畫。我不認為會是在護理端。我相信會持續聚焦在醫師與臨床研究端，或健康 IT、或健康資訊管理。

We are very focused on the daily revenue generating activity to make sure that we are getting operating leverage and in some of our divisions, the markets have changed and they have changed permanently. So we are having to change our mindset as to what's an effective sales campaign, you are in a acceptable level of performance and productivity because of how certain markets, specifically physician staffing have matured. And with that, I will let Katie address a little bit of how we are starting to grow the nursing business even though we are at a lower headcount than we were even a year ago. Katie?

我們非常專注於每日的營收產生活動，以確保我們能取得營運槓桿；而在我們某些事業部，市場已經改變，而且是永久性的改變。因此，我們必須改變思維：什麼才是有效的銷售活動、什麼是可接受的績效與生產力水準，因為某些市場——特別是醫師派遣——已趨於成熟。基於此，我讓 Katie 來談談，儘管我們的人數甚至低於一年前，我們如何開始讓護理業務成長。Katie？

Well, I think what we are starting to see in the nursing world is that our customers are coming back, the nurses who went back to permanent physicians during the hard times are getting to feel more comfortable, going out being travelers again and this is opening up the market to some extent. It's not consistent by any means across the country at this point, but our strategy is to make sure that we are capitalizing on every opportunity as it comes before us and making sure that our systems are in place and we are very fast and efficient and compete in this market.

嗯，我認為我們在護理領域開始看到的是，我們的客戶正在回流；那些在艱難時期回到固定編制職位的護理師，現在感覺更安心了，又開始外出當旅遊護理師，而這在某種程度上正在打開市場。目前這種情況在全國各地並不一致，但我們的策略是確保在每個機會出現時都能把握住，並確保我們的系統到位、反應非常快且效率高，並在這個市場中具備競爭力。

If I may ask one last question, I attended a conference this week in which, was focused on government budgets and it looks like the VA is slated to have some significant increases in part related to healthcare. Is there any opportunity on the physician or nursing side for any kind of work you do with the VA to expand in a meaningful fashion?

如果我可以再問最後一個問題：我本週參加了一場以政府預算為主題的會議，看起來退伍軍人事務部（VA）預計將有一些顯著的增加，其中一部分與醫療保健相關。在醫師或護理端，針對你們與VA合作所做的任何工作，是否有機會以有意義的方式擴大？

Yes, we absolutely believe there is a big opportunity working with the VA system both in physician and the nursing segment. In particular, on the nursing side, this is relatively new area for us and we are concentrating on making lots of placements there when we can.

是的，我們絕對相信，無論在醫師或護理業務領域，與VA體系合作都有很大的機會。特別是在護理端，這對我們而言是相對較新的領域，我們正專注於在可行時盡可能在那裡做大量派遣。

So, that was an area of focus for us for about a year ago to get out GSA contract. We've done a fair amount of work through the physician group with governmental entities, but we really hadn't with our nursing group, but we've elected to tried to get more of that business and it's from a standing start we are making good solid progress and the momentum is pretty positive.

所以，大約一年前那就是我們的重點之一，去取得我們的GSA合約。我們透過醫師團隊與政府機構做了相當多的工作，但在護理團隊方面過去並沒有；不過我們已決定嘗試爭取更多這類業務。從零開始，我們正在取得良好且扎實的進展，動能相當正面。

Thank you very much.

非常感謝。

Your next question comes from the line of Jeff Silber with BMO Capital Markets.

下一個問題來自BMO Capital Markets的Jeff Silber。

Thanks so much. Jim, in your remarks, I mean you went through them pretty quickly, you talked about in the different segments, changes in the bill price case spread, but for the most part they seem to be contracting. Is that coming from the billing side, the pay side, if you can give us a little bit more color what's going on, that would be great?

非常感謝。Jim，在你的發言中，你講得很快；你提到不同業務分部的帳單價格與成本（bill-pay）之間的價差變化，但大多看起來是在收斂。這是來自開票端（billing side）還是支付端（pay side）？如果你能多提供一些背景說明，會很棒。

It's the bill pay margins and I don't -- I don't have them all laid out in front of me unfortunately...

是帳單與支付之間的毛利（bill-pay margins），而我——我不——很遺憾我現在手邊沒有把所有數字都攤開……

I will follow-up offline.

我會在會後再跟進。

I mean, I think if you listen to what's going on with the bill rates, generally the bill rates have come up. It just depends on period to period what -- where we are so....

我的意思是，我想如果你聽聽帳單費率的情況，一般來說帳單費率是上升的。只是要看每個期間的狀況——我們處於哪個位置，所以……

So, and a couple of things, Jeff. I am just looking at the script. In the Life Sciences the bill rate was up and the bill pay margin increased. In Allied Healthcare, the bill rate was flat for the fourth quarter, but the bill rate was up 2% and the bill pay margin was up. In the physician and the nurse travel, the bill pay margin expanded. So, we are three for three on expansion. And then, on the IT business, it contracted a little bit.

所以，Jeff，有幾點。我正在看講稿。在生命科學（Life Sciences）方面，帳單費率上升，帳單-支付毛利也增加。在輔助醫療（Allied Healthcare）方面，第四季帳單費率持平，但帳單費率年增2%，帳單-支付毛利上升。在醫師與旅遊護理方面，帳單-支付毛利擴大。所以我們三個分部三個都在擴大。然後在IT業務方面，則小幅收斂。

Now, I would point out to you that there is going naturally to be a little bit of contraction unless you have a large expansion, because SUI rates are more expensive this year than they were last year.

另外我也要提醒你，除非你有很大的擴張，否則自然會有一些收斂，因為今年的SUI稅率比去年更貴。

Okay, that makes sense. Maybe we can shift gear to the IT and Engineering segment. I mean, the growth has been phenomenal, but you are starting to come up again some tougher year-over-year comparisons, yet you are still looking for 60% year-over-year increase in the second quarter. I know that can't go on but if you can give me what's going on in that segment, why are you putting up such phenomenal numbers?

好的，這就說得通。也許我們可以把焦點轉到IT與工程分部。成長非常驚人，但你們又開始面臨更艱難的年對年比較；然而你們仍預期第二季年增60%。我知道這不可能一直持續，但如果你能說明一下該分部發生了什麼事，為什麼能交出這麼亮眼的數字？

If you go back and pull our scripts from three quarters ago when we couldn't sell a consultant to save our lives, we internally focused our people on rebuilding their databases and building their customer contacts and passionately telling our people if you do this now, it may not generate a $1 revenue for you, but we can guarantee you somebody it will, and we are starting to bear some real fruit from all the hard work we did.

如果你回去翻我們三個季度前的講稿，當時我們幾乎連賣出一位顧問都很困難；我們在內部讓同仁專注於重建資料庫、建立客戶聯繫，並熱切地告訴大家：你現在做這些，可能不會立刻為你帶來1美元的營收，但我們可以保證，終究會為某個人帶來，而我們現在開始收穫當時辛苦耕耘的成果。

I would also point out to you that you got to remember that this business has an average length of assignment of five to six months. So, when we give you a growth rate for the second quarter, it's pretty well locked in.

我也要提醒你，你要記得這個業務的平均派遣期間是五到六個月。所以當我們給你第二季的成長率時，基本上已經相當程度鎖定了。

Okay. That's helpful. And just a quick numbers question. Jim in terms of the guidance, can you give us what interest expense you are using for your second quarter numbers?

好的。這很有幫助。再快速問一個數字問題。Jim，就指引而言，你們第二季數字所採用的利息費用是多少？

Yes, it's about the same as the first quarter.

是的，大約和第一季差不多。

Okay, great. I will jump back in the queue. Thanks.

好的，很好。我回到隊列裡。謝謝。

Your next question comes from Mark Marcon with R. W. Baird.

下一個問題來自R.W.Baird的Mark Marcon。

Good afternoon and congratulations on the strong results. So, wondering -- with regards to the IT, in terms of the 60% growth that you are currently seeing, how much are you going to need to add in terms of internal headcount or how should we think about the capacity within that division in terms of offices things of that nature, how much do you need to expand -- continue to expand to keep the growth up?

下午好，恭喜你們的強勁業績。我想問——關於IT方面，就你們目前看到的60%成長而言，你們需要增加多少內部人力？或者我們應該如何看待該部門的產能，例如辦公室等這類配置；你們需要擴張多少——並持續擴張多少——才能維持成長？

Thanks, Mark, and thanks for the comment about the growth. With regard to the IT division, as you know, that about 65% of the revenue comes from regional recruiting centers and 35 comes from branch offices. So, we have an enormous ability to add to those recruiting centers without having to add a bunch of offices, and we can also redirect those recruiting centers to geographical areas that are stronger than other parts of the United States. What I would tell you that it's particularly strong about the operating leverage that we've recorded in the first quarter is we added significantly to our headcount and still expanded our operating margins and our EBITDA margin.

謝謝你，Mark，也謝謝你對成長的評論。就IT部門而言，如你所知，大約65%的營收來自區域招募中心，35%來自分公司辦公室。因此，我們有很大的能力在不必增加一堆辦公室的情況下，擴充這些招募中心；我們也可以把這些招募中心的資源重新導向到美國境內比其他地區更強勁的地理區域。我想告訴你的是，我們在第一季所呈現的營運槓桿特別強：我們大幅增加了人頭數，但仍擴大了營業利益率以及EBITDA利潤率。

So, specifically, with regard to the IT group, we had -- here it is. Let see, since we added from at the end of December we had 404, at the end of the first quarter we had 421 and at the end of December of '09 we had 275 sales people and recruiters. So, the numbers we gave you include a significant increase in headcount and on a consolidated basis we told you in the script that, bear with me one second, as I find it...

具體來說，就IT團隊而言，我們——在這裡。我看看，從12月底我們是404人，第一季末是421人；而在2009年12月底，我們有275位業務人員與招募人員。所以我們給你的數字包含了顯著的人力增加；而在合併層面，我們在講稿裡也提到——請稍等我一下，我找一下……

Headcount?

人頭數？

Yes.

是的。

Average of 758 in the first quarter up from 728 in the fourth quarter.

第一季平均為758人，高於第四季的728人。

No, year-over-year please.

不，請給年對年。

Okay. That's up from 580 last year?

好的。比去年580人增加？

So, the first quarter of 2010 we had 580 sales people and recruiters. This year we had 758 and the margin went from 4.4% to 8.1% adjusted EBITDA margin.

所以，2010年第一季我們有580位業務人員與招募人員。今年我們有758人，而利潤率從4.4%提升到8.1%的調整後EBITDA利潤率。

Yes.

是的。

So, we are paying for it as we go.

所以，我們是邊走邊付。

I appreciate that. I mean, that's tremendous performance. I was just wondering, as we looked ahead, I mean what sort of plans do you have in terms of additional increases? Should we expect the same pace of growth or is it going to level out or how are you going to gain it because you noted, upfront there might be some -- you are certainly seeing a lot of strength -- the overall labor market in general is improving, but at a uneven pace, so how are you going to manage it?

我很感謝。我的意思是，那是非常出色的表現。我只是想知道，當我們往前看時，你們在進一步增加方面有什麼樣的計畫？我們應該預期相同的成長速度，還是會趨於平緩？或者你們要如何推動成長？因為你提到，一開始可能會有一些——你們確實看到很多強勁動能——整體勞動市場一般而言正在改善，但步調不均，所以你們要如何管理？

Well, it's just all based on opportunity and visibility. And as we said at couple places in our earnings release in the script that we are focused on operating leverage as much as revenue growth, but what I would tell you is we see some enormous opportunities in certain spaces that we are adding people ahead of the curve. And I think we've been pretty good on our timing in getting quick payoffs, but we could shut down the hiring right now and really spike our margin, but I don't think that's going to serve us well because our vision is -- we've got a pretty historic growth opportunity over the next three or five years. So, we are trying to thoughtfully pay as you go to continue to increase our headcount in certain specialty areas.

嗯，這完全取決於機會與能見度。正如我們在新聞稿以及講稿中幾處所說，我們同樣重視營運槓桿與營收成長；但我要告訴你的是，我們在某些領域看到非常巨大的機會，因此我們正在提前增聘人員。我認為我們在掌握時點上做得相當不錯，能很快看到回報；我們現在也可以立刻停止招募，讓利潤率大幅跳升，但我不認為那會對我們有利，因為我們的願景是——未來三到五年我們有一個相當具歷史性的成長機會。因此，我們正以審慎的方式邊走邊付，持續在某些專業領域增加人力編制。

Right. And then is there an assumption that there is about $6 million that's going to be added in terms of revenue on Life Sciences with the acquisition?

了解。那麼，是否假設因為這次收購，生命科學的營收會增加大約600萬美元？

No. No, it's a little under an additional $4 million next quarter. So, we had about $2 million this quarter. It will be a little under $4 million in the second quarter.

不是。不是，下一季新增的金額會略低於400萬美元。所以，我們本季大約有200萬美元。第二季會略低於400萬美元。

Yes, so $6 million in total.

是的，所以合計600萬美元。

Right.

對。

Yes.

是的。

In that range.

大概在那個範圍。

Great, and then, Katie, congratulations in terms of the nursing business. I was wondering can you talk a little bit more about what you are seeing in terms of fill rates and how hard do you have to work in order to get the fill rates up in terms of convincing people to take nurse travel assignments and where are those fill rates relative to the prior peak?

很好，另外，Katie，護理業務方面恭喜你。我想請你多談一點你們在到位率（fill rates）方面看到的情況，以及你們需要多努力才能把到位率拉高——例如說服人員接受護理旅行派遣——以及目前的到位率相較於先前高峰大概在哪個位置？

Okay. Well, with regard to the prior peak, the fill rates are -- people still can be pickier because there are more resumes to submit to a customer.

好的。就先前高峰而言，到位率——大家仍然可以更挑剔，因為可以提交給客戶的履歷更多。

With regard to, Katie, why don't you answer the question as it relates to responsiveness of customers and are they respecting the service or you are having to work hard there for a fill than you did a year ago?

至於這點，Katie，你何不回答一下：就客戶回應速度而言，他們是否重視我們的服務？還是說，為了達成到位，你們比一年前需要更費力？

Yes, Mark, it's kind of difficult question to answer because fill rates really depends on the type of customers that we are working with. If you are talking about opportunities within a vendor management group, the fill rates can be very, very low, and but if you are talking with -- about fill rates with our direct customers, we have pretty strong fill rate opportunity and we are coming in 50% to 70% on those.

是的，Mark，這個問題有點難回答，因為到位率其實取決於我們合作的客戶類型。如果你談的是供應商管理（VMS）體系內的機會，到位率可能會非常、非常低；但如果你談的是我們直客的到位率，我們有相當不錯的到位機會，通常能做到50%到70%。

And so, depending on who we are working with will dictate what the fill rate will be. Our strategy is to have 70% of our opportunity come from direct customers because we feel we have the greatest chance of success in terms of confirming placements and getting the customer to expect our submittals. We've seen a significant improvement in the customers' willingness to actually take our nurses in the last three months as opposed to a year ago when we were putting people out in front of our customers and having very little success.

因此，取決於我們合作的對象，會決定到位率是多少。我們的策略是讓70%的機會來自直客，因為我們認為在確認派遣成功、以及讓客戶願意接受我們的推薦人選方面，成功機率最高。相較於一年前我們把人選推到客戶面前卻幾乎沒有成果，過去三個月我們看到客戶實際接納我們護理人員的意願顯著提升。

Great. My understanding is that --orders have been picking up for a bit now, but it's only been recently that the supplies have kind of freed up and people are willing to take these assignments. Is that correct, I am hearing that from some of the other companies, is that your experience?

很好。我的理解是——需求（訂單）其實已經回升一段時間了，但直到最近供給端才比較鬆動，大家才更願意接這些派遣。這樣說對嗎？我從其他公司也聽到類似說法，你們的經驗也是如此嗎？

I am sorry.

不好意思。

The supply of travelers has increased recently.

旅行護理人員的供給最近增加了。

Yes, I would say that that's accurate. I mean, we really feel that the nurses who during the hard times decided to go back and seek full time employment, permanent employment are now starting to feel more comfortable going back and becoming a traveler again. So, I would concur with that.

是的，我會說這是正確的。我的意思是，我們確實覺得，那些在景氣低迷時期決定回去找全職工作、永久職位的護理人員，現在開始更安心，願意再回來當旅行護理人員。所以我同意這個看法。

And Mark, I would add to that and this will feed on it. So, the other thing we are seeing is the nurse does a calculation, and you have certain nurses who really enjoy travel assignments, but because of uncertainty and also the way that hospitals were very successful in driving down pay rate, when they did the economic calculation they said, I am not making much more than working on the full assignment, but that's starting to change again. And when they can do that calculation and see that they can have the excitement and the variety of change of location and responsibilities and get paid at least as much or more than working full time, they are going to start exiting the full time roles.

Mark，我再補充一點，這也會形成正向循環。我們看到的另一件事是，護理人員會做一個經濟計算：有些護理人員真的很喜歡旅行派遣，但因為不確定性，以及醫院在壓低薪資率方面非常成功，當他們做經濟計算時會覺得：我賺得並沒有比做全職多多少；但這種情況又開始改變了。當他們算一算，發現既能享受刺激感與多樣性——換地點、換職責——而且薪資至少跟全職一樣甚至更高時，他們就會開始離開全職職位。

Great, thanks for the color and congratulations.

很好，謝謝你提供的補充資訊，也恭喜。

Thank you.

謝謝。

(Operator Instructions).

（接線員指示）。

All right. Well, we appreciate your time and attention and we look forward to reporting the second quarter. Thank you very much.

好的。我們感謝各位的時間與關注，也期待在第二季向各位報告。非常感謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以掛線。