On Assignment (ASGN) Approves New $150M Common Stock Buyback Plan

On Assignment, Inc. (NYSE: ASGN) announced that its Board of Directors approved a new stock repurchase program, under which the Company may repurchase up to $150 million of its common stock over the next two years. Under terms of the program, purchases can be made in the open market or under a Rule 10b5-1 trading plan. This program is effective immediately and supersedes the previous $100 million repurchase authorization ($98 million was remaining under the authorization). The stock repurchase program does not obligate the Company to acquire any particular amount of the Company’s stock, and it may be suspended at any time at the Company’s discretion.

Commenting on the stock repurchase program, Peter Damaris, President and CEO of On Assignment, stated, “Since the acquisition of Creative Circle in June 2015, we have reduced our leverage ratio from 3.8 times (ratio of debt to trailing Adjusted earnings before interest, income taxes, depreciation and amortization) to 2.8 times at the end of the preceding quarter. The reduction in our leverage ratio reflects our strong free cash flow generation (which we used to pay down debt). We are trending to reduce our leverage ratio to below 2.5 times prior to the end of the third quarter. We believe that the repurchase program is currently an attractive way for us to return value to our stockholders and does not preclude us from pursuing attractive business development opportunities.”

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