Los Angeles Business Journal

Earnings Roundup: On Assignment, Reliance Steel, LTC

By Business Journal Staff Thursday, February 20, 2014

Shares of On Assignment Inc. rose more than 7 percent on Thursday, after the staffing company reported strong fourth quarter results.

After the markets closed Wednesday, Calabasas company serving the IT and life science industries reported net income of 32.4 million (59 cents a share), compared with net income of $14.2 million (26 cents) a year earlier. Revenue rose nearly 15 percent to $424 million.

For the full year, the company reported net income of $84.5 billion ($1.55) compared to $42.7 million (89 cents) for the previous year. Annual revenue grew 43 percent to $1.6 billion.

Shares closed up $2.21 to $32.76 on the New York Stock Exchange.

Reliance Steel

Reliance Steel & Aluminum Co. on Thursday reported a 23 percent decline in fourth quarter net income. The Los Company blamed the decrease on higher raw material costs and lower prices for its processed metal products.

Reliance reported net income of $61.8 million (79 cents a share), compared with $80.4 million ($1.06) in the same period a year earlier. Revenue rose 22 percent to $2.31 billion.

Adjusted net income was 92 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted net income of 98 cents a share on revenue of $2.36 billion.

Shares closed down $1.77, or 2.5 percent, to $70.61 on the New York Stock Exchange.

LTC Properties

LTC Properties Inc. reported fourth quarter earnings on Thursday that missed analysts’ FFO estimates, despite a growth in profit and revenue.

The Westlake Village real estate investment trust reported funds from operations of $20 million (57 cents a share), compared with $17.5 million (57 cents) in the same period last year. Revenue rose 9.5 percent to $25 million.

Analysts on average expected FFO of 61 cents a share on revenue of $26.6 million, according to Thomson Financial Network. Funds from operations is a key REIT metric that adds amortization and appreciation back into net income to get a better picture of cash flow.

The company reported net income of $13.7 million (40 cents), compared to $11.9 million (39 cents) for the same period in 2012.

The company attributed the increase in FFO and net income to higher revenue from mortgage loan originations, acquisitions and completed property developments. LTC owns 100 skilled-nursing homes, 106 assisted-living facilities and other properties.

Shares closed down 7 cents, or a fraction of a percent, to $36.48 on the New York Stock Exchange