Slide 1: Investor Presentation: Divestiture of KGS
Investor Presentation Divestiture of KGS
Slide 2: Forward Looking Statements
Forward Looking Statements All of the information presented herein that is not historical in nature should be considered to be forward-looking statements that are subject to certain risks, uncertainties or assumptions and may be affected by certain other factors, including but not limited to the spe
Slide 3: Focus on Core Offerings
Focus on Core Offerings ▪ Divestiture of KGS services business results in nearly 100% of revenues in domestic commercial technical and professional staffing. ▪ Despite the loss of revenues from our divestitures, we have continued to accelerate revenue growth and improved profitability. ▪ CAGR in our
Slide 4: Revenue Mix
Revenue Mix The following illustrates the progress we’ve made accelerating growth in our Technology and Finance and Accounting businesses. 2011 Revenue 2018 Revenue $1.1 Billion $1.4 Billion 8% 24% 22% 56% 20% 70% Tech FA Other Tech FA Other 4
Slide 5: Market Overview
Market Overview Technology IT staffing sector has doubled since the Great Recession and is Domestic Technology Staffing expected to grow due to multiple secular demand drivers: Historical and Projected Spending ▪ Rapid pace of technological change ($ in billions) 27.5 28.6 29.9 31.0 32.0 ▪ Nontradit
Slide 6: Market Overview – Continued
Market Overview – Continued Finance & Accounting Domestic Finance & Accounting Historical and Projected Spending F&A staffing sector is expected to grow due to multiple demand drivers: ($ in billions) ▪ Lack of skilled finance and accounting professionals 7.6 7.8 8.2 8.5 6.7 7.2 ▪ Increasing levels
Slide 7: Transaction Overview and Rationale
Transaction Overview and Rationale High-Level Transaction Economics ▪ Purchase Price: $115 million (implied multiple of 12x to 13x EBITDA) ▪ Expected Book Gain: $70 million to $75 million ▪ Expected After-Tax Net Proceeds: $90 million to $95 million ▪ Expected Closing is in Q1 2019. Transaction Cons
Slide 8: Pro Forma Q1 2019 Guidance
Pro Forma Q1 2019 Guidance The following table provides our Q1 2019 guidance (as originally issued) and on a pro forma basis excluding any contribution from our KGS services business: 8
Slide 9: Appendix
Appendix (K)
Slide 10: Pro Forma Financials - 2018
Pro Forma Financials - 2018 10