Everforth, Inc. (EFOR) 2016 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the third quarter 2016 earnings call.

各位女士、先生，感謝您稍候，歡迎參加2016年第三季財報電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this conference is being recorded. Thank you.

提醒各位，本次會議將被錄音。謝謝。

I would now like to turn the conference over to Mr. Ed Pierce. Please go ahead, sir.

現在我想將會議交給Ed Pierce先生。先生，請開始。

Thank you. Good afternoon, and thank you for joining us today.

謝謝。各位下午好，感謝今天加入我們。

Before we get started, I'd like to remind everyone that our presentation contains forward-looking statements representing our current judgment of what the future holds. Although we believe these statements are reasonable, they are subject to risks and uncertainties and our actual results could differ materially from those statements. Some of these risks and uncertainties are described in today's press release and in our SEC filings. We do not assume the obligation to update statements made on this call.

在開始之前，我想提醒各位，我們的簡報包含前瞻性陳述，代表我們目前對未來的判斷。儘管我們相信這些陳述是合理的，但它們仍受風險與不確定性影響，我們的實際結果可能與這些陳述存在重大差異。部分風險與不確定性已在今日新聞稿及我們向美國證券交易委員會（SEC）提交的文件中說明。我們不承擔更新本次電話會議中所作陳述的義務。

For your convenience, our prepared remarks can be found in the Investor Relations section of our website.

為方便起見，我們的事先準備講稿可在我們網站的投資人關係（Investor Relations）專區查閱。

Please note that on this call we will be referencing certain non-GAAP measures, such as adjusted EBITDA and adjusted net income. These non-GAAP measures are intended to supplement the comparable GAAP measurements. Reconciliations between the GAAP and non-GAAP measures are included in today's press release.

請注意，在本次電話會議中我們將引用若干非GAAP衡量指標，例如調整後EBITDA與調整後淨利。這些非GAAP指標旨在補充可比較的GAAP衡量指標。GAAP與非GAAP指標之間的調節表已包含於今日新聞稿中。

I will now turn the call over to Peter Dameris, our CEO and President, who will provide an overview of our results for the quarter. Peter?

現在我將把電話會議交給我們的執行長兼總裁Peter Dameris，他將概述本季業績。Peter？

Thank you, Ed, and I would like to welcome everyone to the On Assignment 2016 third quarter earnings conference call. With Ed and me today are Rand Blazer, President of Apex Systems; Mike McGowan, COO of On Assignment and President of Oxford Global Resources; and Ted Hanson, Executive Vice President of On Assignment.

謝謝你，Ed。我也要歡迎各位參加On Assignment 2016年第三季財報電話會議。今天與Ed和我一同出席的還有：Apex Systems總裁Rand Blazer；On Assignment營運長、Oxford Global Resources總裁Mike McGowan；以及On Assignment執行副總裁Ted Hanson。

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 Rand and Mike. I will then turn the call over to Ed for a more detailed review and discussion of our third quarter results and our estimates for the fourth quarter of 2016. 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Rand與Mike討論各營運部門的表現。之後我會把電話交給Ed，對第三季業績以及我們對2016年第四季的預估進行更詳細的回顧與討論。最後我們將開放提問。

Now on to the third quarter results. Our results for the quarter exceeded the high end of our previously announced financial estimates for revenue, were in line with our estimates for gross profits and adjusted EBITDA, and above the midpoint of our guidance on earnings.

接著談第三季業績。本季營收結果超出我們先前公布財務預估區間的上緣；毛利與調整後EBITDA符合我們的預估；盈餘則高於我們指引的中點。

Revenues for the quarter were $629.4 million, up 10% year over year. This marked the 11th consecutive quarter that our company grew above the IT staffing industry's projected annual growth rate since January 1, 2013.

本季營收為6.294億美元，年增10%。自2013年1月1日以來，這是我們公司連續第11個季度的成長高於IT人力派遣產業預估的年度成長率。

Our growth rate reflected, among other things, the deepening of many new large customer relationships that we have established over the last three years, and higher overall productivity. Virtually all of our divisions contributed to our strong third quarter performance.

我們的成長率反映了多項因素，其中包括過去三年我們建立的許多大型新客戶關係持續深化，以及整體生產力提升。幾乎所有事業部門都對我們強勁的第三季表現有所貢獻。

Our size and service offerings enable us to grow faster than the published staffing industry growth rate of 4%, and we believe that we are well positioned to generate solid above-market revenue growth in the future. Revenue growth came from both our local, midmarket and large national accounts reflecting strong customer demand.

我們的規模與服務內容使我們能以高於已公布之人力派遣產業4%成長率的速度成長；我們相信未來我們具備良好條件，能持續創造穩健、優於市場的營收成長。營收成長同時來自我們的在地、中型市場與大型全國性客戶，反映出強勁的客戶需求。

We believe, based on current operating performance, that this solid growth will continue into the fourth quarter. Our IT business continues to see high demand from its customers, driven in part by greater adoption of staff augmentation as a viable alternative to outsourcing, offshoring and consulting.

我們相信，基於目前的營運表現，這股穩健成長將延續至第四季。我們的IT業務持續看到客戶的高度需求，部分原因是客戶更廣泛採用人力增補（staff augmentation）作為外包、離岸外包與顧問服務的可行替代方案。

Wage inflation continues to be manageable. Going forward, due to supply/demand imbalances in IT candidates, we believe our customers, as they have always done, will permit us to increase pay wages for our consultants, and thereby increase our bill rates.

薪資通膨仍在可控範圍內。展望未來，由於IT候選人才供需失衡，我們相信客戶將一如既往允許我們提高顧問薪資，並因此提高我們的計費費率。

With respect to recent production, our weekly assignment revenues, which excludes conversion, billable expenses and direct placement revenues, averaged $47 million for the last two weeks, up 11.3% over the same period in 2015. Adjusted EBITDA for the quarter was $77.8 million, or 12.4% of revenues, compared with $74.9 million, or 13.1% of revenues, in the third quarter of 2015.

就近期產出而言，我們的每週派遣營收（不含轉任、可計費費用與直接媒合營收）在最近兩週平均為4,700萬美元，較2015年同期成長11.3%。本季調整後EBITDA為7,780萬美元，占營收12.4%；相較之下，2015年第三季為7,490萬美元，占營收13.1%。

Cash generation continues to be at or above our expectations. Since closing the Creative Circle acquisition on June 5, 2015, we have repaid $200 million of our debt.

現金創造能力持續達到或高於我們的預期。自2015年6月5日完成Creative Circle收購以來，我們已償還2億美元的債務。

At September 30, 2016, our leverage ratio was 2.38 times trailing 12-month adjusted EBITDA. During the quarter we repaid $34 million of our debt. We estimate our leverage ratio to be approximately 2.33 times by the end of the fourth quarter of 2016.

截至2016年9月30日，我們的槓桿比率為過去12個月調整後EBITDA的2.38倍。本季我們償還了3,400萬美元的債務。我們估計到2016年第四季末，我們的槓桿比率約為2.33倍。

As you will recall, we announced on June 13, 2016, that our Board of Directors authorized a new 150-million share repurchase program. Since July 26 we have repurchased approximately 572,000 shares at an average price of $36.90, and we intend to continue to execute our share repurchase program based on share price and market conditions.

各位應該記得，我們於2016年6月13日宣布董事會核准一項新的1.5億股庫藏股回購計畫。自7月26日以來，我們已以平均每股36.90美元回購約572,000股，並計畫將依股價與市場狀況持續執行回購計畫。

We continue to see signs that the ongoing debate regarding the on-demand workforce, or gig economy, is accelerating the usage of contract labor. Fractionalization of human capital by using the staffing industry's services is the only way to avoid the risk of misclassification of employees as independent contractors.

我們持續看到跡象顯示，關於隨需勞動力（on-demand workforce）或零工經濟（gig economy）的持續辯論，正在加速契約勞動的使用。透過使用人力派遣產業的服務來將人力資本分割化，是避免將員工誤分類為獨立承包商之風險的唯一方式。

Our customers have and are realizing this, and that is why we believe the secular growth opportunities for the entire professional staffing industry are so attractive. We also believe that we are well positioned to service our customers' IT needs, as technology rapidly evolves and is adopted.

我們的客戶已經並正在意識到這一點，這也是我們認為整個專業人力派遣產業的結構性成長機會如此吸引人的原因。我們也相信，隨著科技快速演進並被採用，我們具備良好條件來滿足客戶的IT需求。

We continue to be sensitive to and conscious of the fears of an economic slowdown in the US. To date we have not seen a significant change in our customers' normal purchasing behavior for our contract assignment services. We continue to see solid demand from the end markets we serve and continue to benefit from the improved productivity of our additional headcount that we added in the second half of 2014 and 2015.

我們仍對美國經濟放緩的疑慮保持敏感與警覺。迄今為止，我們尚未看到客戶在採購我們契約派遣服務方面的正常購買行為出現顯著變化。我們持續看到所服務終端市場的穩健需求，並持續受益於我們在2014年下半年與2015年新增人力所帶來的生產力提升。

Ed will give you our fourth quarter guidance shortly. I did, however, want to comment that while the overall revenue growth and profit trend of the Company are good, we are not satisfied with the performance at our Oxford IT unit. Throughout the year we have made sizable investments, and over the last 12 months those investments have yet to produce a measurable impact.

Ed稍後將提供第四季指引。不過我想補充的是，雖然公司整體營收成長與獲利趨勢良好，但我們對Oxford IT單位的表現並不滿意。全年我們已進行相當可觀的投資，但在過去12個月中，這些投資尚未產生可衡量的影響。

While we are committed to the investments we have made, we also must start to see a timely return on these investments. In 2016 these investments have cost, to date, the Oxford division approximately $2.4 million in increased SG&A and generated revenues of approximately $4.2 million.

雖然我們致力於已做出的投資，但我們也必須開始看到這些投資能在合理時間內帶來回報。2016年至今，這些投資使Oxford事業部的SG&A增加約240萬美元，並帶來約420萬美元的營收。

Finally, my summarization of the third quarter performance and fourth quarter estimates are as follows. Our revenue growth rate for the third quarter was above the estimated 5% growth rate for the IT staffing industry. All divisions performed at or above our expectations.

最後，我對第三季表現與第四季預估的總結如下：我們第三季的營收成長率高於IT人力派遣產業預估的5%成長率。所有事業部門的表現均達到或高於我們的預期。

With that said, our Oxford segment, which is approximately 25% of our total revenues, grew slightly below the estimated industry growth rate, mainly due to low growth in certain of its skill sets, specifically ERP, engineering and permanent placement. Oxford's healthcare IT division and its European division did report solid double-digit growth in the quarter.

話雖如此，我們的Oxford部門約占總營收的25%，其成長略低於產業預估成長率，主要原因是其部分技能領域成長偏低，特別是ERP、工程以及永久派遣（permanent placement）。Oxford的醫療保健IT部門與歐洲部門在本季則呈現穩健的雙位數成長。

Permanent placement is stable but remains challenging. As expected, growth in the third quarter was minimal, and CyberCoders, which is part of our Oxford segment and represents about 61% of our total perm placement revenues, was down 1.9% year over year.

永久派遣維持穩定但仍具挑戰。如預期，第三季成長幅度很小；而CyberCoders隸屬於我們的Oxford部門，約占我們永久派遣總營收的61%，年減1.9%。

The fourth quarter of 2016 has a more difficult prior-year comparable, as the consolidated permanent place growth in the fourth quarter of 2015 was 31.6%, or 10.6 percentage points higher than the third quarter of 2015.

2016 年第四季的去年同期比較基期較為艱難，因為 2015 年第四季合併永久派遣（permanent placement）成長率為 31.6%，較 2015 年第三季高出 10.6 個百分點。

With respect to our financial estimates for the fourth quarter, our estimated sequential revenue growth rate ranges from 1.4% to slightly over 3% after adjusting for three fewer billable days in the fourth quarter of 2016 relative to the third quarter of 2016. The number of business days in the quarter is simply the number of calendar days less weekends and holidays. Each business day is approximately $10 million in revenue.

就我們對第四季的財務估計而言，在調整 2016 年第四季相較 2016 年第三季少了 3 個可計費日之後，我們估計的季增營收成長率介於 1.4% 至略高於 3%。本季的營業日數僅為日曆天數扣除週末與假日。每一個營業日約相當於 1,000 萬美元營收。

On a year over year basis, our growth rate for the quarter ranges from 7% to 9% after adjusting for one fewer business day. The year-over-year growth rate for the quarter reflects a more difficult prior-year comparable, as the year-over-year growth rate for the fourth quarter of 2015 was 1 full percentage point higher than the third quarter growth rate of 2015.

以年對年基礎來看，在調整少 1 個營業日後，本季成長率介於 7% 至 9%。本季的年對年成長率反映較艱難的去年同期比較基期，因為 2015 年第四季的年對年成長率比 2015 年第三季的成長率高出整整 1 個百分點。

In our press release, we also included our estimated billable days for the quarter, which differs from business days. Our billable days, which we use to formulate our financial estimates, considers other factors in addition to weekends and holidays, such as the day of the week a holiday occurs, additional time taken off around holidays, year-end client furloughs, and inclement weather.

在我們的新聞稿中，我們也納入了本季估計的可計費日數，這與營業日不同。我們用來制定財務估計的可計費日，除週末與假日外，還會考量其他因素，例如假日落在星期幾、假日前後額外休假時間、年底客戶無薪休假（furloughs），以及惡劣天候。

For the fourth quarter we estimate billable days of 60, which is 3.1 fewer days than the preceding third quarter of 2016 and 1.6 fewer days than the fourth quarter of 2015. Adjusting for the fewer billable days, our estimate year-over-year growth rate for the fourth quarter ranges from 8% to 10%, versus the 7% to 9% on a business day basis.

我們估計第四季可計費日為 60 天，較前一季 2016 年第三季少 3.1 天，較 2015 年第四季少 1.6 天。在調整可計費日較少的影響後，我們估計第四季年對年成長率介於 8% 至 10%，相較以營業日基礎計算的 7% 至 9%。

I will now turn the call over to Rand Blazer, President of Apex Systems, who will review the operations of his segment. Rand?

接下來我把電話會議交給 Apex Systems 總裁 Rand Blazer，由他回顧其事業部門的營運。Rand？

Great, Peter. Thank you.

很好，Peter。謝謝你。

Let's take a little pause here and we'll get into the Apex segment. The Apex segment, which consists of the Apex Systems, Lab Support and Creative Circle business units, reported strong results for the third quarter of 2016.

我們先稍作停頓，接著進入 Apex 事業部。Apex 事業部由 Apex Systems、Lab Support 與 Creative Circle 三個業務單位組成，在 2016 年第三季繳出強勁成績。

Revenues for the segment were $473.6 million, up 12% year over year. Revenues for Apex Systems, which accounts for 74% of the segment's revenues, were up 12.1% year over year. This performance is particularly noteworthy considering clearly revenue growth rate tax was 14.8% in Q3 2015 on a year-over-year basis.

該事業部營收為 4.736 億美元，年增 12%。其中 Apex Systems 佔該事業部營收的 74%，其營收年增 12.1%。考量到 2015 年第三季的年對年營收成長率為 14.8%，這項表現尤其值得注意。

Lab Support's revenue growth was slightly above the growth rate from the prior quarter, and Creative Circle reported revenue growth outpacing the growth rate for the segment. The Creative Circle unit continues to perform well, with year-over-year growth rates for the quarter continuing at our expectations.

Lab Support 的營收成長略高於前一季的成長率，而 Creative Circle 的營收成長則快於該事業部的成長率。Creative Circle 業務單位持續表現良好，本季年對年成長率符合我們的預期。

Our gross margin for the segment was 30.3%, which was in line with our estimates for the quarter and reflects stable pricing in our markets. Our segment's contribution in terms of EBITDA remains strong, with very solid conversion of gross profit to EBITDA, paced by the increasing productivity of our sales and delivery teams.

該事業部毛利率為 30.3%，符合我們對本季的估計，並反映我們市場中的定價穩定。就 EBITDA 而言，本事業部的貢獻仍然強勁，毛利轉換為 EBITDA 的比率非常穩健，主要受惠於我們銷售與交付團隊生產力提升。

With respect to Apex Systems, our IT staffing division, revenue growth was propelled by a number of factors, including growth in six of our seven industry verticals, with double-digit growth in aerospace defense, financial services and healthcare sectors. Our technology industry did not grow year over year. It's the only one that did not, although the technology industry revenue growth in Q3 2015 was our highest industry vertical in terms of revenue growth.

就 Apex Systems（我們的 IT 派遣部門）而言，營收成長由多項因素推動，包括七個產業垂直領域中有六個實現成長，且航太國防、金融服務與醫療保健等領域達到雙位數成長。我們的科技產業年對年未成長，是唯一未成長的領域；不過在 2015 年第三季，科技產業的營收成長率曾是我們各產業垂直領域中最高者。

Growth in our top accounts led the way, with continued strong revenue growth. Our local branch or midmarket accounts also contributed at a double-digit growth level in the quarter.

我們的主要客戶（top accounts）成長領先，營收持續強勁成長。我們的在地分公司或中型市場客戶（midmarket accounts）在本季也以雙位數成長做出貢獻。

Finally, as mentioned, field productivity continued to gain strength in the corner, supporting our revenue performance, and, importantly, our conversion rates. Our Lab Support and Creative Circle units saw continued good opportunities for growth, with the opportunity to place creative marketing skill sets remaining strong.

最後，如前所述，前線生產力在本季持續增強，支撐我們的營收表現，更重要的是支撐我們的轉換率。我們的 Lab Support 與 Creative Circle 業務單位持續看到良好的成長機會，其中創意行銷技能的人才派遣需求仍然強勁。

So, in conclusion, overall the Apex segment had another strong quarter, with revenue continuing with double-digit growth on a year-over-year basis, with each of its business units contributing very strong conversion of gross profit to EBITDA. I'll now the call over to Mike on the Oxford side.

總結來說，Apex 事業部整體又度過一個強勁季度，營收年對年維持雙位數成長，且各業務單位皆展現毛利轉換為 EBITDA 的非常強勁表現。接下來我把電話會議交給 Oxford 方面的 Mike。

Thanks, Rand. The Oxford segment is comprised of Oxford core. CyberCoder is our permanent placement business, and Life Sciences Europe. Our Oxford core unit accounted for 77.2% of segment revenues, CyberCoders 15.3%, and Life Sciences Europe 7.5%.

謝謝，Rand。Oxford 事業部由 Oxford core、CyberCoders（我們的永久派遣業務）以及 Life Sciences Europe 組成。Oxford core 佔該事業部營收的 77.2%，CyberCoders 佔 15.3%，Life Sciences Europe 佔 7.5%。

For the third quarter of 2016, Oxford segment had revenues of $155.8 million, up 4.3% year over year and 1% sequentially. Assignment revenues were $134.4 million, up 5.4% year over year, and permanent placement revenues were $21.4 million, which was down 2.2% year over year.

2016 年第三季，Oxford 事業部營收為 1.558 億美元，年增 4.3%，季增 1%。派遣（assignment）營收為 1.344 億美元，年增 5.4%；永久派遣（permanent placement）營收為 2,140 萬美元，年減 2.2%。

The decline in permanent placement revenues reflected lower demand from our technology-based clients, specifically early-stage companies, and a very tight candidate pool. As we have stated in the past, our clients have had less urgency in filling their permanent employee needs.

永久派遣營收下滑反映我們以科技為主的客戶（特別是早期階段公司）需求較弱，以及候選人才庫非常吃緊。正如我們過去所述，我們的客戶在補足永久員工需求方面的急迫性降低。

Gross margin for the segment was 40.7%, down 90 basis points year over year, which was primarily due to a lower mix of permanent placement revenues, which was 13.8% of segment revenues for the quarter, down from 14.7% in the third quarter of 2015. Oxford's core revenues for the third quarter were $120.4 million, up 5.8% year over year.

該事業部毛利率為 40.7%，年減 90 個基點，主要因永久派遣營收占比下降所致；本季永久派遣營收占該事業部營收的 13.8%，低於 2015 年第三季的 14.7%。Oxford core 在第三季的營收為 1.204 億美元，年增 5.8%。

In each of the first three quarters of 2016 Oxford core had year-over-year revenue growth above the published IT staffing growth rate. This growth was primarily driven by growth in our key accounts, increased demand for EMR implementations, upgrades and optimization projects within our healthcare IT business unit, and strong growth across most skilled disciplines in our European IT operations.

2016 年前三季，Oxford core 的年對年營收成長均高於公開發布的 IT 派遣產業成長率。此成長主要由關鍵客戶成長所帶動、我們醫療 IT 業務單位對 EMR 導入、升級與最佳化專案的需求增加，以及我們歐洲 IT 營運中多數高技能職類的強勁成長所驅動。

Throughout 2016 our traditional ERP practice has been relatively flat, which reflects the transition to cloud-based computing. Our high-end engineering skill area also has experienced low growth, in line with the published 2016 SIA growth estimates.

2016 年期間，我們傳統的 ERP 業務相對持平，反映向雲端運算的轉型。我們高階工程技能領域也呈現低成長，與公開發布的 2016 年 SIA 成長估計一致。

During 2016 we have made investments in a number of emerging skills. While we have become to see some traction from these investments, it has been slow and below our expectations. As Peter previously mentioned, we are committed to these investments and expect to see higher returns on them in the future.

2016 年我們在多項新興技能上進行投資。雖然我們已開始看到這些投資帶來一些進展，但速度緩慢且低於我們的預期。如 Peter 先前提到，我們承諾持續這些投資，並預期未來將看到更高的回報。

I'll now turn the call over to Ed Pierce. Ed?

接下來我把電話會議交給 Ed Pierce。Ed？

Thanks, Mike, and, as Peter mentioned earlier, revenues for the quarter were above the high end of our previously announced financial estimates. Our revenue growth rate for the quarter was 10%, which was double the public IT staffing industry growth rate.

謝謝你，Mike。而且如 Peter 先前提到，本季營收高於我們先前公布的財務估計區間上緣。本季營收成長率為 10%，是公開 IT 派遣產業成長率的兩倍。

Assignment revenues were $596.4 million, up 10.6% year over year, and permanent placement revenues were $33 million, up 0.7% year over year. The year over year fluctuations in foreign exchange rates had an immaterial effect on the revenue growth rates for the quarter.

派遣營收為 5.964 億美元，年增 10.6%；永久派遣營收為 3,300 萬美元，年增 0.7%。外匯匯率的年對年波動對本季營收成長率影響不大。

Gross margin for the quarter was $32.9 percent, which was below the low end of our previously announced estimates and down 60 basis points year over year, primarily because of the lower mix of permanent placement revenues and higher growth in our high-volume, lower margin accounts.

本季毛利率為 32.9%，低於我們先前公布估計區間的下緣，且年減 60 個基點，主要因永久派遣營收占比較低，以及我們高量、低毛利客戶的成長較快所致。

SG&A expenses were $142 million, or 22.6% of revenues. After adjusting for the $0.7 million in acquisition and integration expenses, SG&A expenses were in line with our previously announced estimates. The acquisition and integration expenses mainly related to the integration activities of Oxford, which should be completed by the end of the year.

SG&A 費用為 1.42 億美元，占營收的 22.6%。在剔除 70 萬美元的收購與整合費用後，SG&A 費用與我們先前公布的預估一致。收購與整合費用主要與 Oxford 的整合作業相關，預計將於年底前完成。

Net income for the quarter was $29.8 million, or $0.55 per share on a diluted basis, up from $24.9 million, or $0.47, in the third quarter last year.

本季淨利為 2,980 萬美元，稀釋後每股盈餘為 0.55 美元，高於去年第三季的 2,490 萬美元（稀釋後每股 0.47 美元）。

As we mentioned at today's press release, starting with this quarter we changed our determination of adjusted net income non-GAAP measure to remove the cash tax savings on indefinite-lived intangible assets and instead disclose these savings in a footnote to the table that shows the individual components of adjusted net income. These tax savings are approximately $6.7 million per quarter, or $0.12 per share.

如同我們在今日新聞稿中提到的，自本季起，我們調整了非 GAAP 指標「調整後淨利」的認定方式：不再將無限年期無形資產的現金稅負節省額自調整後淨利中剔除，而是改於顯示調整後淨利各個組成項目的表格註腳中揭露。該等稅負節省額約為每季 670 萬美元，或每股 0.12 美元。

Accordingly, adjusted net income for the quarter was $40 million, or $0.74 per diluted share, up from $37.2 million, or $0.70 per share in the third quarter of last year. These earnings were in line with our financial estimates after adjusting for the cash tax savings on intangibles.

因此，本季調整後淨利為 4,000 萬美元，稀釋後每股 0.74 美元，高於去年第三季的 3,720 萬美元（每股 0.70 美元）。在就無形資產的現金稅負節省額進行調整後，該等獲利與我們的財務預估一致。

Adjusted EBITDA, a non-GAAP measure, was $77.8 million, or 12.4% of revenues, up from $74.9 million in the third quarter last year. Cash flows from operating activities were $42.7 million, and capital expenditures were $6.6 million.

調整後 EBITDA（非 GAAP 指標）為 7,780 萬美元，占營收的 12.4%，高於去年第三季的 7,490 萬美元。營運活動現金流量為 4,270 萬美元，資本支出為 660 萬美元。

During the quarter we paid down $34 million of our long-term debt, which reduced our leverage ratio to 2.38 to 1 at the end of the quarter. First the first 9 months of 2016 we generated adjusted EBITDA of $214.3 million, cash flows from operating activities of $140.3 million, and free cash flow, a non-GAAP measure of $119.8 million. During the period we converted 55.9% of our adjusted EBITDA into free cash flow.

本季我們償還了 3,400 萬美元的長期負債，使得季末槓桿比率降至 2.38 比 1。2016 年前 9 個月，我們產生的調整後 EBITDA 為 2.143 億美元，營運活動現金流量為 1.403 億美元，自由現金流（非 GAAP 指標）為 1.198 億美元。期間內，我們將調整後 EBITDA 的 55.9% 轉換為自由現金流。

Now turning to our financial estimates for the fourth quarter of 2016, we're estimating revenues of $608 million to $618 million, net income of $25.4 million to $27.3 million, or $0.47 to $0.51 per diluted share, adjusted EBITDA of $70.5 million to $73.5 million. These estimates do not include any acquisition or integration cost.

接著談 2016 年第四季的財務預估：我們預估營收為 6.08 億至 6.18 億美元，淨利為 2,540 萬至 2,730 萬美元（稀釋後每股 0.47 至 0.51 美元），調整後 EBITDA 為 7,050 萬至 7,350 萬美元。上述預估不包含任何收購或整合成本。

As we noted in today's press release, our revenue estimates after adjustment for the fewer business days in the quarter imply year-over-year growth of approximately 7% to 9%, which is 2 to 4 percentage points higher than the published growth rate for the IT staffing industry. The growth rate for the quarter reflects a more difficult comparable, as the year-over-year growth rate for Q4 2015 was one full percentage point higher than the growth rate for Q3 of last year.

如同我們在今日新聞稿中指出的，在就本季較少的營業日進行調整後，我們的營收預估意味著年增率約為 7% 至 9%，較 IT 人力派遣產業公布的成長率高出約 2 至 4 個百分點。本季成長率反映了較具挑戰性的比較基期，因為 2015 年第四季的年增率比去年第三季的年增率高出整整 1 個百分點。

I will now turn the call back over to Peter for some closing remarks.

我現在把電話交回給 Peter，請他做一些結語。

Thank you. We continue to believe our scale, size and breadth of services has us well positioned to take advantage of what we believe will be historic secular growth for the staffing industry and dynamic changes in the technology world as it moves more into a digital one.

謝謝。我們仍然相信，憑藉我們的規模、體量與服務廣度，我們已處於有利位置，可把握我們認為將是人力派遣產業歷史性的長期結構性成長，以及科技世界在邁向更數位化過程中的動態變化。

While the entire On Assignment team is very proud of our performance, we remain focused on continuing to profitably grow our business and increase our rate of growth. 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.

雖然整個 On Assignment 團隊都為我們的表現感到非常自豪，但我們仍專注於持續以獲利方式成長業務並提升成長速度。我也要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。

Operator, I would like to now open the call up to participants for questions.

接線員，我現在想開放讓與會者提問。

(Operator Instructions)

（接線員指示）

Gary Bisbee, RBC Capital Markets LLC.

RBC Capital Markets LLC 的 Gary Bisbee。

Hi, guys. This is Jay Hanna on for Gary today. I was wondering if you could give a little more color on what client spin levels are like at Creative Circle this quarter. I think they declined a little bit last quarter.

嗨，各位。我是今天代替 Gary 的 Jay Hanna。我想請問你們能否多提供一些本季 Creative Circle 客戶「spin」水準的情況。我記得上季似乎有些下滑。

The growth rate was mid to high teens. Bill rates continued to be attractive. We actually saw a little reacceleration to a higher rate of growth at the end of the quarter than the beginning. So continues to be the fastest contract service growing division of On Assignment at this stage. So we're quite confident of the continued growth.

成長率在十幾個百分點的中高段。計費費率仍然很有吸引力。實際上，我們看到本季末的成長率比季初略有再加速。因此在這個階段，它仍是 On Assignment 旗下成長最快的合約服務事業部。我們對持續成長相當有信心。

Great. And was acceleration through the quarter, did you see that in the other business lines, or could you give any color there, as well?

很好。那麼這種在季度內的加速，你們在其他業務線也有看到嗎？也能否提供一些相關說明？

Yes, so, I mean, if you look at the pure billable days, we just reported $629 million of revenue, and we told you that there are three fewer billable days, business days, fourth versus third, so that's -- and $10 million a day. So that's $30 million on top of the high end of the guidance we gave you at $618 million would show you that the average revenue per business day is up over the third quarter.

有的，所以，我是說，如果你看純粹的可計費天數，我們剛公布的營收是 6.29 億美元，而我們也告訴各位，第四季相較第三季少了 3 個可計費天數、也就是營業日，所以那就是——而且每天約 1,000 萬美元。所以在我們給的指引上限 6.18 億美元之上，再加上 3,000 萬美元，會顯示每個營業日的平均營收較第三季有所提升。

There are just fewer days in the fourth quarter. So we really didn't see, as we said in our prepared remarks, a noticeable deceleration, and things continue apace, albeit it there are fewer days to bill in the quarter.

只是第四季天數較少。因此我們確實沒有看到——如同我們在事先準備的講稿中所說——明顯的減速，整體仍按既定步調推進，只是本季可計費的天數較少。

Okay. Thank you.

好的，謝謝。

Tim McHugh, William Blair & Co. LLC.

William Blair & Co. LLC 的 Tim McHugh。

Yes, hi. Peter, you called out the investments in Oxford, which I wonder if you could just elaborate on them. I guess it's not a huge dollar amount relative to the total, but obviously recognize you want to see some improvement, and you mentioned it specifically, so what -- can you talk more about what the investments are, why it isn't showing up the way you hoped so far?

是的，你好。Peter，你提到對 Oxford 的投資，我想請你再多說明一些。我猜相對於總體來說金額不算很大，但顯然你們希望看到一些改善，而且你特別提到它，所以——你能否談談這些投資是什麼、為什麼到目前為止沒有如你們所希望地反映出來？

Well, look, it's headcount. It's sales headcount and some recruiting headcount for some of these newer digital practices. And, I mean, just do back-of-the-envelope math. We spent $2.4 million to get $4.2 million of revenue.

嗯，你看，主要是人力編制。是銷售人力以及一些招募人力，用於這些較新的數位化實務領域。而且，我是說，簡單算一下：我們花了 240 萬美元，換來 420 萬美元的營收。

If you just apply 12% EBITDA margin to the $4.2 million, that looks like we lost about $2 million, right? So, and it's been about 9 to 12 months. And we're disappointed. But we're not going to give up, and we're going to rearrange their day and hopefully get a little closer execution. But it's headcount.

如果你把 12% 的 EBITDA 利潤率套用到 420 萬美元上，看起來我們大概虧了 200 萬美元，對吧？而且已經大約 9 到 12 個月了。我們很失望。但我們不會放棄，我們會重新調整他們的工作安排，希望執行上能更到位一些。但本質上就是人力編制。

And those aren't the only investments that we've made, by the way. Those are just ones that really were outside of what we had kind of contemplated and budgeted in the 2016 budget.

順帶一提，那些也不是我們做的唯一投資。只是那些投資確實超出了我們在 2016 年預算中原本大致預期與編列的範圍。

Okay. And what about -- you gave the comment that in the last few weeks there was 11% growth. You just made a comment that Creative kind of got better as the quarter went on. I guess, but I recognize there are fewer billing days, but on a same-day basis the guidance does show a little bit slower growth than Q3. So can you help me reconcile kind of those two points?

好的。那另外——你提到過去幾週有 11% 的成長。你剛也說 Creative 在季度進行中變得更好。我想——我理解可計費天數較少，但以同日基礎來看，你們的指引確實顯示成長比第三季略慢一些。你能否幫我把這兩點對起來？

Well, I don't mean to confuse people, but now instead of looking at business days, look at billable days that takes into consideration furloughs, when the holiday falls, and if somebody's going to take an extra workday off, etc. We just took into consideration what we thought the impact would be from fewer billable days in the fourth quarter, and as you get later in the quarter it starts to wane a little bit.

嗯，我不想讓大家混淆，但現在不要只看營業日，而是看可計費天數，這會把無薪假、假日落在哪一天、以及是否有人會多請一天假等因素都納入考量。我們只是把我們認為第四季可計費天數較少所帶來的影響納入考量，而隨著季度進入後段，成長動能會稍微減弱一些。

That's all we're saying. It's not because of purchasing behavior. It's people want to work fewer hours. They don't want to travel around the holidays. Projects get completed and new ones don't get started.

我們要說的就這些。這不是因為採購行為的關係，而是人們想要少工作幾個小時。他們不想在假期前後到處出差。專案做完了，但新的專案沒有啟動。

Okay, fair enough. Thank you.

好，這樣說也合理。謝謝。

Jeff Silber, BMO Capital Markets.

Jeff Silber，BMO Capital Markets。

Thanks so much. Just wanted to follow up on Tim's first question. You mentioned the issues at Oxford were headcount. I just want to understand, is this a lack of headcount or a lack of the right type of headcount?

非常感謝。我想追問一下 Tim 的第一個問題。你提到 Oxford 的問題在於人力編制。我想了解的是：這是人手不足，還是缺乏正確類型的人力？

A lack of production from the headcount that we added.

我們新增的人力所產出的生產力不足。

Okay. And what changes are you contemplating to improve the level of productions?

了解。那你們正在考慮做哪些改變，以提升產出水準？

Well, two things, and then I'll let Mike add to it. The first is the people are longer in the chair. We are restructuring their daily activity in some of these newer practices to see if that has a different impact.

嗯，有兩點，然後我再請 Mike 補充。第一是，這些人坐在位子上的時間更長了。我們正在重整其中一些較新的業務單位的日常活動安排，看看是否會帶來不同的影響。

We have changed some senior leadership at the Oxford core business. And we hope to see a different impact.

我們也更換了 Oxford 核心業務的一些資深領導層。我們希望能看到不同的效果。

Mike, do you want to add anything?

Mike，你要補充什麼嗎？

No, I think that really covers it. It was some organizational and process changes that we're in the middle of as well as, as Peter said, more time in the chair for some of these folks, and they're slower to come to fruition, if you will, than what we expected. But so far so good.

沒有，我想這已經涵蓋了重點。我們正在進行一些組織與流程上的調整；另外如 Peter 所說，部分同仁需要更多「坐在位子上」的時間，而這些成效的顯現比我們預期的更慢一些。但到目前為止一切都還不錯。

I mean, Jeff, not to sound defensive, but the business grew -- the Oxford core business, taking the perm out and the life sciences out, it grew 5.8% in the third quarter over the third quarter of 2015. Now, we're not satisfied with that, but nobody else is -- even our slowest growing division, contract division, is outpacing everybody else by 400 basis points.

Jeff，我不是要聽起來在辯解，但業務確實有成長——Oxford 核心業務，扣除永久派遣（perm）與生命科學之後，第三季相較 2015 年第三季成長了 5.8%。當然我們對此並不滿意，但其他人也一樣——即便是我們成長最慢的部門、合約派遣部門，也仍然比其他所有人快 400 個基點。

Yes, no, that's very fair. I understand that, so I appreciate you pointing that out. Just a quick question on the guidance. I don't know if it's possible to give any color on the revenue side by segment what you're expecting in the fourth quarter.

是的，不，這樣說很公平。我理解，所以也謝謝你指出這點。關於財測我再快速問一下：第四季在營收端，按部門別你們預期如何？能否提供一些方向？

We didn't get that granular. We tried to give you as much clarity as possible on billable days that we think -- we told you we haven't seen a dramatic change in purchasing, but we're not getting into specific growth rates per division.

我們沒有做到那麼細。我們試著就可計費天數提供盡可能多的清晰度——我們也告訴你，我們沒有看到採購端出現劇烈變化，但我們不會提供各部門的具體成長率。

Okay, that's fair. And, Ed, I've got one for you, and I know you knew this one was coming, but I'm just curious about why the change in the adjusted EPS calculation.

好，這也合理。Ed，我有一題要問你，我知道你也知道這題一定會來，但我只是好奇：為什麼要更改調整後 EPS 的計算方式？

Well, it's actually, Jeff, it's actually pretty simple. We changed mainly to better align with the non-GAAP measure guidelines that have been put out by the SEC.

Jeff，其實很簡單。我們主要是為了更好地與 SEC 所發布的非 GAAP 指標指引對齊，所以做了調整。

Okay. That's a good explanation. Thanks so much.

好，這個解釋很清楚。非常感謝。

Kevin McVeigh, Deutsche Bank.

Kevin McVeigh，德意志銀行。

Great, thanks. And just to follow up on Jeff's question, if you look at the guidance for Q4 EPS relative to where the Street is, is there a bridge in terms of -- as a result of the new methodology on the EPS calculation?

很好，謝謝。延續 Jeff 的問題，如果把第四季 EPS 指引拿來跟市場一致預期相比，是否能用一個橋接來說明——也就是因為 EPS 計算新方法所造成的差異？

Yes, it's actually pretty simple. If you're looking at -- to get it on the same basis as our published number, or our financial estimates, it's just a $0.12 difference. Okay? That's the effect of the change that we made.

是的，其實很簡單。如果你要把它調到與我們公布數字、或我們財務預估相同的基礎，只差 0.12 美元。好嗎？這就是我們這次變更的影響。

Right. So is it fair to say for that Q4 EPS guidance relative to the Street, if you were to add back $0.12, that would be the --

了解。所以可以說，第四季 EPS 指引相對於市場，如果把 0.12 美元加回去，那就會是——

Yes.

是的。

-- apples to apples comparison?

——同口徑（apples to apples）的比較？

Yes. Yes. On an adjusted net income basis, yes.

是的。是的，以調整後淨利基礎來看，是的。

Okay, because that makes some more sense relative to where the revenue guidance looked really good relative to where the EPS was, so that's super helpful. And then I guess my only other question, Peter, was on the Creative side, as you think about budgets heading into 2017, any thoughts around client spend?

好，因為這樣就更能理解：營收指引看起來相對 EPS 很強，所以這非常有幫助。然後我想我唯一的另一個問題，Peter，是關於 Creative 業務：在你們思考 2017 年預算時，對客戶支出有什麼看法？

And obviously the IT continues to be real resilient. Any thoughts on bill rate (inaudible) just to tie that into an anniversary while the sales force invests (inaudible) in terms of the revenue contribution there?

而且很明顯 IT 仍然非常有韌性。對於費率（聽不清）有什麼想法？也想把它跟週年效應連結起來，因為銷售團隊在投入（聽不清），就那邊的營收貢獻而言。

The comment I would make, Kevin, as follows. We continue to be very confident in the sustainability of their margins and their growth rates. And publicly what we always say, even though we can post -- we have posted better, for modeling purposes, count us in for 200 to 300 basis points faster than the published growth rate for the industry, or the particular industry that a division operates in.

Kevin，我的看法如下：我們對其毛利率與成長率的可持續性仍然非常有信心。我們對外一向的說法是：即使我們有時能做得更好——而且我們確實做得更好——但就建模而言，請把我們視為比產業（或某個事業部所處的細分產業）公布的成長率快 200 到 300 個基點。

And just like this quarter we did better than it. If we can do it, we will. But for modeling purposes that's probably a pretty good starting point.

就像本季我們也比它更好。如果我們做得到，我們就會去做。但就建模而言，這大概是個不錯的起點。

It's helpful. And then just, and I'll jump off, so for 2017 we should take our EPS down by $0.48? Is that fair? Just to kind of sync up with where the estimates are for the tax -- new tax treatment?

很有幫助。然後我再問最後一題我就下線：所以對 2017 年，我們應該把 EPS 下修 0.48 美元？這樣說公平嗎？主要是為了跟目前市場對稅務——新的稅務處理——的預估同步。

Yes, well, it really is to your adjusted net income per share.

是的，不過那其實是針對你的「調整後每股淨利」。

Adjusted, yes. Okay. Awesome. Thanks, guys.

調整後，是的。好，太好了。謝謝各位。

And we will continue to -- Kevin, we will continue to footnote it to remind people. It's a real (inaudible). But you pointed out, and I appreciate you pointing out the disconnect between the published fourth quarter number and the guidance we just gave is the removal of that $0.12.

而且我們會持續——Kevin，我們會持續在註腳中說明，以提醒大家。這是一個（聽不清）。但你指出的、我也很感謝你指出的：我們剛給的指引與第四季公布數字之間的落差，就是把那 0.12 美元拿掉了。

Yes, and we'll definitely, we'll highlight that to investors in the notes. Thank you.

是的，我們一定會在註解中向投資人強調這點。謝謝。

Randy Reece, Avondale Partners LLC.

Randy Reece，Avondale Partners LLC。

Afternoon.

下午好。

Hey, Randy.

嗨，Randy。

I was just looking at your staffing consultant numbers and looking at the year-ago numbers adjusted for the Creative Circle acquisition. It looks like that you're adding staffing consultants at a similar pace that you did in third quarter of last year. Is that accurate?

我剛在看你們的人力派遣顧問（staffing consultant）數據，並把去年同期的數字按 Creative Circle 併購做了調整。看起來你們增加派遣顧問的人數速度，和去年第三季差不多。這樣理解正確嗎？

You know, if that's what's on the supplemental financial information it is, if that's what you're quoting me. I don't have that committed to memory, Randy. I think that's right.

你知道，如果補充財務資訊上是那樣，那就是那樣——如果你引用的是那份資料。我沒有把那個數字背起來，Randy。我想你說得沒錯。

I didn't really see any change of direction there. As far as your view on the need for investing in growth at this point, have you had any change through the past few months?

我沒有看到你們在方向上有什麼改變。就你們目前對成長投資需求的看法而言，過去幾個月有任何改變嗎？

No. I mean, Randy, I heard the comments of others talking about controlling their headcount, etc., etc. We've had the privilege of continuing to grow, and we -- a lot of pundits believe that as anemic as 2% GDP growth is that 2017 may be better than 2016, we have the luxury of being able to continue to hire and increase our internal headcount, and that's what we're doing, because we haven't seen an environment which would dictate to us to start pulling back.

沒有。我的意思是，Randy，我也聽到其他人談到控制人力編制等等。我們很幸運能持續成長；而且——很多評論人士認為，儘管 2% 的 GDP 成長很疲弱，但 2017 年可能會比 2016 年好。我們有餘裕可以持續招募、增加內部人力編制，而我們也正在這麼做，因為我們還沒有看到任何環境會迫使我們開始收縮。

It seems like we're starting to hear from IT staffing companies that changes in the technology end markets have had a disruptive effect on pockets of demand for IT staffing. You mentioned in the comments that there's more need for cloud-related skills, and maybe there are some other areas that are softer. Have these influences affected your business over the past few quarters?

看起來我們開始聽到一些 IT 派遣公司說，科技終端市場的變化，對某些 IT 派遣需求的區塊造成了干擾性影響。你在評論中提到，雲端相關技能的需求更高，而可能有些其他領域比較疲弱。這些因素在過去幾季有影響到你們的業務嗎？

That's an absolute fair comment. I will tell you there is not as much demand for infrastructure as there once was. There's not as much demand for, maybe, call center as there once was. Look, there's not as much demand for bookkeepers and accountants. We don't do that because there's QuickBooks and TurboTax.

這個評論完全合理。我可以告訴你，對基礎架構的需求已經不像以前那麼高了；對（可能是）客服中心的需求也不像以前那麼高。你看，對簿記員和會計的需求也沒那麼高了。我們不做那個，因為有 QuickBooks 和 TurboTax。

So, yes, technology disrupts. And our job is to constantly make sure that we're not doing commoditized skill sets. But the answer to your -- and the place where we've seen it real time where Mike McGowan addressed it in his prepared remarks is the traditional non-cloud-based ERP implementations.

所以，是的，科技會帶來顛覆。而我們的工作就是持續確保我們不在做已商品化的技能組合。但針對你提出的——以及我們即時看到、Mike McGowan 在其事先準備的發言中也提到的——是傳統的、非雲端式的 ERP 導入實施。

Thank you very much.

非常感謝。

Mark Marcon, Robert W. Baird.

Mark Marcon，Robert W. Baird。

Hi, good afternoon. I've got a question for Rand. Rand, strong growth within legacy Apex Systems. I was wondering if you could talk a little bit about how much of that growth do you think is due to share gains, maybe a superior footprint for us, aggressiveness, positioning, relative to what you think the budgets are doing at some of those clients. And how have the discussions unfolded as they start looking towards next year and how they're anticipating kind of like end-of-year projects and then what happens in the first quarter after -- post-election.

嗨，下午好。我有個問題想問 Rand。Rand，傳統的 Apex Systems 內部成長很強勁。我想請你談談，你認為這些成長有多少是來自市占提升——也許是我們更優越的佈局、更積極的作為、或相較之下更好的定位——相對於你認為那些客戶的預算本身在做什麼變化。另外，當他們開始展望明年、預期類似年底專案，以及選後第一季會發生什麼事時，相關討論是如何展開的？

All right. Well, Peter, I'll go ahead and respond. First of all, as we transition into the next year we always find clients go through a process where they're reconciling -- closing out the year, reconciling their budgets for the next -- for the coming year. So we'll go through a little bit of a lull in the first quarter, as we normally do. That's what we always do.

好。Peter，我先來回應。首先，當我們邁向下一年度時，我們總是看到客戶會經歷一個流程：他們會對帳——結算年度，並為下一——即將到來的一年核對預算。因此第一季我們會出現一段小幅的空窗期，就像我們通常會有的那樣。這一直都是我們的常態。

But notwithstanding, there's a lot of things going on in our marketplace, Mark, right now. First of all, I would say we are gaining equally in gain share as much as adding new accounts. So flip that in half.

但即便如此，Mark，我們的市場現在仍有很多事情正在發生。首先我會說，我們在既有客戶的市占提升（gain share）與新增客戶（new accounts）兩方面的收穫大致相當。也就是各占一半。

First of all, the gain share is coming in part because in some of our sectors the clients are beginning to still scrutinize their vendor base and shrink it a bit. And as they shrink it a bit and we're still left standing, which we are in almost every case, we're getting more market share with that account. Plus we're obviously trying to do better in the digital skill areas and the skill areas that they're needing the most, which is where we're growing the most.

首先，市占提升部分，部分原因是我們某些產業的客戶仍在檢視其供應商基礎並稍微縮減。當他們縮減供應商、而我們仍然留在名單上——幾乎每個案例都是如此——我們在該客戶的市占就會提高。此外，我們也明顯在數位技能領域、以及他們最需要的技能領域做得更好，而那正是我們成長最多的地方。

In terms of new accounts, every year we set out to attack new accounts and add them to our client list. And we've done a really pretty good job of that in the last two, three years, for sure. So did I answer your questions, I think, all of your questions?

至於新客戶方面，我們每年都會主動攻新客戶並把他們加入我們的客戶名單。過去兩、三年我們確實做得相當不錯。所以我想我有回答到你的問題——應該是你所有的問題吧？

So, the one that I wasn't clear on was with regards to what you're hearing from some of those accounts with regards to how they're thinking about the budgets, because you are -- you're clearly growing, and I'm basically trying to differentiate between your growth in terms of either gaining new accounts or share gains, as opposed to what's going on in the budget of those various clients. Because the performance that you're executing is markedly different than some of the other public companies, some of which are not as focused as you are.

所以，我不太清楚的是：你從那些客戶那邊聽到他們如何看待預算。因為你們——你們顯然在成長，而我基本上是想區分：你們的成長究竟是來自新增客戶或市占提升，還是來自那些客戶預算本身的變化。因為你們的執行表現明顯不同於其他一些上市公司，其中有些公司不像你們這麼聚焦。

Yes, I think -- I wish there was a good measure we could look at the IT spend in corporate America. My feeling is, and, Peter, you might jump in on this, as well, that the IT spend is actually going to start inching up, certainly in sectors.

是的，我想——我希望有一個好的衡量方式可以看美國企業的 IT 支出。我的感覺是，而且 Peter 你也可以補充——IT 支出其實將開始緩步上升，至少在某些產業會是如此。

Financial services sector, because that sector's got a little bit more profitability. The government side, government services side, definitely, because I think of the spend in defense, homeland security that we've seen there in the past six months or so.

金融服務產業，因為該產業的獲利能力稍微更好。政府端、政府服務端，肯定也是，因為我想到我們在過去大約六個月看到的國防、國土安全方面的支出。

Our healthcare spend is continuing to grow up in IT as those accounts understand the value and power of IT in helping them work their way through everything that's going on in their industry. Technology accounts for us, we still have a good business there. I think spend ebbs and flows a bit with them.

我們在醫療保健的 IT 支出仍在持續成長，因為那些客戶理解 IT 的價值與力量，能協助他們因應其產業正在發生的一切。至於科技類客戶，我們在那裡仍有不錯的業務。我認為他們的支出會有些起伏。

Telecommunications has been strong, and there's a lot of merger activity right now in the telecommunications media business that I think will mean more spend on IT. So I think you have to go sector by sector and look at it.

電信一直很強，而目前電信媒體業有很多併購活動，我認為這將意味著更多 IT 支出。所以我覺得必須逐一按產業來看。

And we certainly have, I think, capitalized. So, to answer that, I think there is a modest increase in IT spend which is helping us win new accounts and position ourselves, but I also think we're gaining market share because we're just in a better position with a lot of these accounts.

而我認為我們確實把握住了這些機會。所以要回答你的問題，我認為 IT 支出有溫和增加，這有助於我們贏得新客戶並強化定位；但我也認為我們之所以能提升市占，是因為我們在許多這類客戶中的位置本來就更有利。

You know, Mark, the only thing I would add is that on top of what Rand said about sector, there's also deployment model gains. So, as we always tell you, a customer can develop or deploy technology either using internal staff, Indian-centric offshore development, outsourcing, project consulting or staff augmentation. And they each have their strength and weakness.

Mark，我唯一想補充的是，除了 Rand 提到的產業因素之外，還有部署模式（deployment model）的市占變化。我們一直跟你們說，客戶可以用不同方式來開發或部署技術：使用內部人員、以印度為中心的離岸開發、外包、專案顧問服務或人力派遣（staff augmentation）。每一種都有其優勢與弱點。

But for every IT service dollar spent right now, I think that the staff aug model is gaining a little bit on the offshores because of the quality, flexibility, visibility and control. And that share gain's coming, not at the expense of one of our staff aug competitors, but at the expense of a different deployment model.

但就目前每一塊 IT 服務支出美元而言，我認為人力派遣模式正因品質、彈性、可視性與控制力，而相對離岸模式略有提升。而這種市占提升並不是以我們某個人力派遣競爭對手為代價，而是以另一種部署模式為代價。

And that's something that you're seeing right now, Peter, in terms of when you talk about some of those share gains within some of those accounts?

而這也是你現在看到的，Peter——當你談到在某些客戶內部的那些市占提升時？

Yes. I mean, some projects that would've been done by an offshore country -- company -- are being domestically performed with staff aug. And I just think the footing that we're on as a nation with regard to protectionism, it takes a lot of courage to outsource for 10 years 2,000 jobs to India these days and then defend that domestically. So there's a lot more reliability and control of augmenting an internal staff with domestic labor than offshoring it.

是的。我的意思是，有些原本會由離岸國家——公司——來做的專案，現在改由國內以人力派遣方式來執行。我只是覺得，就保護主義而言，我們國家的立足點使得：如今要把 2,000 個工作外包到印度 10 年，並在國內為此辯護，需要很大的勇氣。因此，相較於離岸，把內部團隊用國內人力來做增補，可靠性與控制力都更高。

Well, Peter, if I could add, because Peter's on the right train, and we'll offshore (inaudible) is one trend. Mark, you've heard us talk about consulting spend, and the better staffing firms are able to wedge into that spend and provide value through all the things Peter talked about. So that definitely is a trend, as well. So there's a lot of things at work here all at one time.

Peter，如果我可以補充一下，因為 Peter 的方向是對的，而離岸（inaudible）是一個趨勢。Mark，你也聽我們談過顧問支出，而較好的派遣公司能夠切入那部分支出，並透過 Peter 提到的所有因素提供價值。所以那也絕對是一個趨勢。因此，這裡同時有很多因素在一起發揮作用。

Great. And then can you just talk a little bit about what your expectations would be for CyberCoders beyond this coming quarter and how you think about that vis-a-vis the kind of general environment that we're in and what sort of thoughts you might have with regards to the impact on gross margin?

很好。那你能否再談談你對 CyberCoders 在接下來這一季之後的期待？以及你如何在目前的大環境下看待它？另外，你對毛利率影響可能有哪些想法？

Well, one, it's the most directly tied to cyclical growth of the economy. CyberCoders is actually going to either meet or exceed its Board budget for 2016. We kind of predicted what we were going to see. We took a very conservative approach.

嗯，第一，它與景氣循環成長的連動性最直接。CyberCoders 實際上在 2016 年將會達到或超過董事會預算。我們某種程度上預測到了我們將會看到的情況。我們採取了非常保守的做法。

So we would hope with some of the work that we're doing in the latter half of 2016 that the year over year growth comparables being a lot easier than the 38% that we mentioned to you during our prepared remarks that we would be able to get back to a growth trajectory. But it's still going to be, I think, a very challenging marketplace, for a variety of reasons.

所以我們希望，透過我們在 2016 年下半年所做的一些工作，加上年對年成長的比較基期會比我們在事先準備的發言中提到的 38% 更容易一些，我們能夠回到成長軌道。但我認為市場仍會非常具挑戰性，原因有很多。

The good news for us is CyberCoders' perm business represents about 3%, 3.5% of our total revenue. So it's manageable.

對我們來說的好消息是，CyberCoders 的永久職缺（perm）業務約占我們總營收的 3% 到 3.5%。所以是可控的。

Great. And then lastly, you mentioned bill rate increases for next year. What do you think we should model on the IT side just in terms of general rate of inflation for wages and for bill rates?

很好。最後，你提到明年的計費費率（bill rate）會上調。就 IT 端而言，關於薪資與計費費率的一般通膨幅度，你認為我們在模型中應該如何假設？

You know, Mark, I don't think we've ever given any guidance for that. So I know others speak about it, but that's a very, very fluid conversation we have with customers, and I don't feel comfortable giving you guidance on just a we're going to be able to push this percent through. It's really a conversation with the customer. And it's not the same with each customer.

你知道，Mark，我不認為我們曾經就此提供過任何指引。所以我知道其他人會談到這件事，但這是我們與客戶之間非常、非常動態的對話，我不太願意就「我們能把這個百分比推過去」給你任何指引。這真的取決於與客戶的對話，而且每個客戶都不一樣。

I appreciate it. You just, you had mentioned it on your remarks, so I was just trying to get a sense for as a general rule.

了解，謝謝。你剛才在發言中提到過，所以我只是想大致了解一下，作為一般原則會是怎樣。

What I was trying to allude to is we do believe that we'll be able to have a conversation with our customer and say if you want the fill rates and the timeliness of the fill, then we need to have -- you need to be open to having a conversation about pay rates and bill rates. And historically when they see tight labor markets they're willing to have that conversation. But I can't tell you at what percentage level increase it'll be.

我想暗示的是，我們確實相信我們能與客戶對話並說：如果你想要補足率（fill rates）以及補足的及時性，那我們就需要——你也需要願意就薪資率（pay rates）與計費率（bill rates）進行討論。歷史上，當他們看到勞動市場緊俏時，他們願意進行這樣的對話。但我無法告訴你會在什麼百分比的調升幅度上。

Got it. Thank you.

明白了。謝謝你。

(Operator Instructions)

（接線員指示）

George Tong, Piper Jaffray & Co.

George Tong，Piper Jaffray & Co.

Hi, thanks. Good afternoon. Peter, can you comment on trends you saw in order flow growth in Apex and Oxford during the third quarter and discuss if you've seen any further elongation of the sale cycle compared to earlier quarters?

嗨，謝謝。下午好。Peter，你能評論一下第三季你在 Apex 和 Oxford 看到的訂單流入（order flow）成長趨勢，並談談相較於前幾季，你是否看到銷售週期進一步拉長嗎？

We did not see that in our business.

我們的業務沒有看到那種情況。

Great, and then order flow trends, if growth was stable in each of the segments throughout the quarter, or if there were trends of acceleration or deceleration?

很好，那麼訂單流入的趨勢方面，整個季度各個部門的成長是否保持穩定？還是有加速或放緩的趨勢？

Right, so we said that -- we gave you kind of what the two-week revenue was exiting the quarter, and it was a little bit higher than what we actually posted for the third quarter. So we didn't see a deceleration.

是的，所以我們說過——我們給了你季度末退出時的兩週營收水準，而且那個數字比我們第三季實際公布的略高一些。所以我們沒有看到放緩。

Great. And then, Ed, your 4Q guidance for gross margins shows year-over-year contraction. Can you elaborate on what shapes your view around 4Q gross margins, including bill pay spread per mix and temp to perm conversions?

很好。接著，Ed，你對第四季毛利率的指引顯示年對年收縮。你能詳細說明你對第四季毛利率的看法依據嗎？包括計費與薪資價差（bill-pay spread）的組合影響，以及臨轉正（temp to perm）轉換等因素。

Well, it's predominantly the year-over-year drop in the perm placement mix. Okay? Because last year I think Q4 --

嗯，主要是年對年永久職缺安置（perm placement）組合占比下降。好嗎？因為去年我想第四季——

38% growth.

成長 38%。

Yes, Peter mentioned 38% growth is what we had in the perm business, but it was 5.7% of our mix.

是的，Peter 提到我們永久職缺業務成長 38%，但它占我們組合的 5.7%。

Right.

對。

And so you're looking at roughly 5% for Q4 this year. So that's 0.7% change and reduction in mix. And, as you know, that, for the most part, is pure gross margin. It's almost 100% gross margin business.

所以你看到今年第四季大約是 5%。也就是占比變動 0.7 個百分點、組合占比下降。而且如你所知，這在很大程度上幾乎就是純毛利。這幾乎是 100% 毛利的業務。

George, the other thing that would it around is size of customer and skill set mix.

George，另外一個因素是客戶規模以及技能組合的結構。

Got it. Very helpful.

了解了。非常有幫助。

But the change in perm mix is probably the main driver.

但永久職缺組合占比的變化可能是主要驅動因素。

Great. Thank you.

很好。謝謝。

Tobey Sommer, SunTrust Robinson Humphrey.

Tobey Sommer，SunTrust Robinson Humphrey。

Thank you. I was curious, do you think your growth rate at the revenue line is exceeding industry growth rate by a wider margin recently, or do you think you're kind of staying the same degree ahead of the growth rate? Just curious how you would compare that.

謝謝。我很好奇，你認為你們營收端的成長率最近是否以更大的幅度超過產業成長率？還是你覺得你們大致維持同樣程度的領先？想請你比較一下。

I don't know how to -- if I'm interpreting your question correctly, but --

我不確定——如果我正確理解你的問題的話，但——

You've been performing by a wider margin.

你們的表現領先幅度更大。

Yes. Based on the numbers that have been released by some of the public companies that have IT staffing as a component of their overall revenues, we're growing much faster than the industry growth rate. I mean, I think some of the competitors were saying they shrunk a negative 1% or 3%. And the most current industry data, Tobey, which hasn't been updated recently, was, I think, IT's growing 5% in 2016.

是的。根據一些上市公司公布的數據——它們的整體營收中包含 IT 派遣（IT staffing）這一部分——我們的成長速度遠快於產業成長率。我的意思是，我想有些競爭對手說他們萎縮了負 1% 或 3%。而最新的產業數據，Tobey，最近似乎沒有更新，我記得是 2016 年 IT 成長 5%。

Yes.

是的。

So, if I'm interpreting your question right, if the public peers' data is more current than the SIA 5% growth rate, then, yes, we're growing a lot faster than the industry at large.

所以，如果我對你的問題理解正確，若上市同業的數據比 SIA 的 5% 成長率更即時，那麼，是的，我們的成長速度比整體產業快很多。

Okay. Could you comment on your cash conversion and maybe just with respect to the change in the calculation to adjusted EPS? That doesn't really influence your ability to generate cash, does it?

好的。你能評論一下你們的現金轉換（cash conversion）嗎？另外關於調整後 EPS 計算方式的變更——那其實不會影響你們產生現金的能力，對吧？

It has no effect on cash generation. It's just presentation.

那對現金產生沒有任何影響。只是呈現方式不同。

Okay.

好的。

We still get the full economic benefit. It's just presentation.

我們仍然獲得完整的經濟利益。只是呈現方式不同。

And then with respect to your long-term financial goals, could you maybe update us on how you're feeling about those, and I guess we're not too many years away from hitting them?

另外關於你們的長期財務目標，你能否更新一下你們對這些目標的看法？我想我們距離達成它們也沒剩幾年了？

Yes.

是的。

Thank you.

謝謝。

Well, we said -- in 2014 we said we hoped to be able to get to $3 billion in revenue, somewhere between $3.45 and $3.75 in adjusted EBITDA, and somewhere between 11.5% and 12.5% EBITDA margin. Well, we just reported a 12.4% EBITDA margin.

嗯，我們說過——2014 年我們表示希望能達到 30 億美元營收、調整後 EBITDA 約 3.45 億到 3.75 億美元之間，以及 EBITDA 利潤率約 11.5% 到 12.5%。而我們剛剛公布的 EBITDA 利潤率是 12.4%。

You've got an estimate for the full year which will get us with kind of 10% growth into the midpoint of the adjusted EBITDA. And on the revenue side if we end up growing 8% or 9%, then we probably have ahold of a couple of hundred million dollars, which over a two-year period could easily be acquired with internally generated cash.

你們對全年有一個估計，若以大約 10% 的成長，將使我們的調整後 EBITDA 落在中位數附近。而在營收方面，如果我們最後成長 8% 或 9%，那我們可能還差個兩三億美元左右；在兩年的期間內，這完全可以用內部產生的現金透過併購來補足。

So we feel that the targets are still obtainable and realistic, and if they weren't we would adjust them.

所以我們認為這些目標仍然可達且務實；如果不可達，我們就會調整它們。

Okay. And are there -- kind of turning the conversation towards acquisitions, could you talk about what you're seeing in the marketplace and your interest level in executing something?

好的。那——把話題轉向併購，你能談談你在市場上看到的情況，以及你們執行交易的興趣程度嗎？

Well, the industry still remains highly fragmented. There are some interesting properties out there. And, as you know, we take quite seriously whether the business is acquirable, not whether it's accretive, and that's why they Apex, Oxford, Creative Circle acquisitions have gone well, because we have a similar culture and business model.

嗯，這個產業仍然高度分散。市場上有一些有趣的標的。而且如你所知，我們非常認真看待的是這門生意是否「可併購」（acquirable），而不是是否「增厚」（accretive）；這也是為什麼 Apex、Oxford、Creative Circle 的併購進展順利，因為我們有相似的文化與商業模式。

Based on current sector sentiment, Tobey, public valuations are less than private valuations. So we're pretty -- right now, balancing debt repayment and creating capacity to do acquisitions with also buying us at what we think is a reasonable valuation, we're trying to balance that. And we're continuing to purchase us versus something else right now because of the valuation disparity.

根據目前產業情緒，Tobey，上市公司的估值低於私募市場的估值。所以我們現在相當——在償還債務、創造併購能力，以及以我們認為合理的估值回購自家股票之間，我們正試圖取得平衡。由於估值落差，我們目前持續選擇買我們自己而不是買別的標的。

Thank you very much for your time, Peter.

非常感謝你撥冗，Peter。

And there are no further questions at this time.

目前沒有其他問題。

All right. Well, we appreciate your interest and attention and look forward to speaking with you when we report our fourth quarter. Everyone have a good evening.

好的。我們感謝各位的關注與支持，並期待在我們公布第四季業績時再與各位交流。祝各位晚安。

Ladies and gentlemen, that does conclude our conference for today. Thank you again for using the AT&T Executive Teleconference Service. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。再次感謝您使用 AT&T 高階主管電話會議服務。您現在可以掛線。