TAMPA, Fla., Aug 2, 2011 (GlobeNewswire via COMTEX) –Kforce Inc. , a provider of professional staffing services and solutions, today announced results for its second quarter of 2011. Revenue for the quarter ended June 30, 2011 was $274.0 million compared to $262.4 million for the quarter ended March 31, 2011, an increase of 4.4% and compared to $246.1 million for the quarter ended June 30, 2010, an increase of 11.3%. For the quarter ended June 30, 2011, Kforce reported net income of $6.8 million, or $0.17 per share, versus $4.8 million, or $0.12 per share, for the quarter ended March 31, 2011, an increase of 40.2% in net income and 41.7% in EPS. Net income and EPS for the second quarter of 2011 increased 31.9% and 30.8%, respectively, versus the second quarter of 2010, which had net income of $5.1 million, or $0.13 per share.
Kforce Reports Second Quarter Revenue of $274.0 Million and EPS of $0.17/60 70 leveli,We are pleased with the performance of our Technology (Tech) and Health Information Management (HIM) businesses and the continued strength in Search, which are up 15.2%, 21.2% and 23.5%, respectively, on a year-over-year basis. However, we are not satisfied with the performance of our government and Kforce Clinical Research businesses or the mortgage related component of Finance & Accounting (FA), which continue to be impacted by their particular operating environment challenges. We believe we have made significant progress adjusting our operating models in these businesses and have confidence in our great teams. Overall, we are pleased with our quarterly revenues of $274.0 million, which represents a Firm record, and earnings of $0.17 per share. This represents year-over-year growth of 11.3% and 30.8%, respectively. We continue to leverage our National Recruiting Center (NRC) and Strategic Accounts teams to capture revenue opportunities and provide operating expense leverage. We plan to continue optimizing the investments we have made and to be selective regarding additional investments during this uncertain economic environment.
We believe Kforce is well positioned to service our clients increasing desire for a more flexible workforce during this unique temporary employment-led recovery. We remain committed to our goal to surpass prior peak earnings in the cycle with a higher quality revenue stream that is less dependent upon permanent placement revenue, said David L. Dunkel, Chairman and CEO.
William L. Sanders, President, said, Our key performance indicators and discussions with clients indicate that demand continues to be solid, particularly in Tech, HIM and FA. Against this backdrop, Kforce is committed to our operational objectives for 2011 and beyond to further penetrate and accelerate growth at existing strategic accounts, compete for additional customer share and selectively target new accounts where our service offerings and business model add value to our clients. We also expect to continue to improve profitability through the leverage that exists in our highly advanced operating platform and by further evolving the NRC, which allows us to profitably serve certain clients and niches that would not be possible under a traditional staffing model. We remain focused on adapting to the changing needs of all of our businesses to optimize performance and position the Firm for long-term success.
Mr. Sanders noted additional operational results for the second quarter include:
— Flex revenue of $261.8 million in Q2 11 increased 3.8% from $252.3 million in Q1 11 and increased 10.8% from $236.3 million in Q2 10. — Flex revenue per billing day of $4.1 million in Q2 11 increased 2.1% over Q1 11 and increased 10.8% over Q2 10. — Sequential percentage changes in Flex revenue by segment were a 7.6% increase for Tech, 1.6% increase for HLS, 0.7% decrease for FA and 6.0% decrease for Government Solutions. — Search revenue of $12.2 million in Q2 11 increased 20.6% from $10.1 million in Q1 11 and increased 23.5% from $9.9 million in Q2 10.
Joseph J. Liberatore, Chief Financial Officer, said, We are pleased with second quarter results, particularly in our continued ability to demonstrate strong discipline in controllable areas of the Firm, such as expense management and collection of accounts receivable. We continue to be confident in the long-term outlook of our business. The second quarter of 2011 contained 64 billing days compared to 63 billing days in Q1 11, and 64 billing days in Q2 10. We believe our second quarter results reflect our strong culture, tenured sales associate population and a continued focus on execution in all aspects of the business, including improving client relationships, solid expense management and continued efficiencies and operating leverage provided by the NRC.
Financial highlights for the second quarter include:
— Flex gross profit increased 130 basis points to 28.4% in Q2 11 from 27.1% in Q1 11 and decreased 60 basis points from 29.0% in Q2 10, which was primarily attributable to a combination of compressed bill/pay spread and increased payroll taxes. — Selling, general and administrative expenses as a percentage of revenue increased 70 basis points to 26.3% in Q2 11 from 25.6% in Q1 11 and decreased 60 basis points from 26.9% in Q2 10. — Adjusted EBITDA for Q2 11 was $17.3 million, an increase of 22.6% from $14.1 million in Q1 11 and an increase of 25.8% from $13.7 million in Q2 10. — Bank debt at the end of Q2 11 was $18.9 million, reflecting an increase of $8.1 from $10.8 million at the end of Q4 10. This increase was primarily related to the open market repurchase of 0.9 million shares of common stock for $13.3 million during 2011. — Earnings per share for Q2 11 was $0.17, an increase of 41.7% from $0.12 per share in Q1 11 and an increase of 30.8% from $0.13 in Q2 10.
Mr. Liberatore stated, In addition, looking forward to the third quarter of 2011, we expect revenue may be in the $276 million to $283 million range and earnings per share in the range of $0.17 to $0.19. Both the second and third quarters of 2011 have 64 billing days.
On Tuesday, August 2, 2011, Kforce will host a conference call to discuss these results. The call will begin at 5:00 p.m. Eastern Time. The dial-in number is 877-344-3890. The replay of the call will be available from 7:00 p.m. Eastern Time Tuesday, August 2 to August 17, 2011 by dialing (800) 642-1687 Mens Polo Shirts, passcode 24321868.
This call is being webcast by Shareholder.com and can be accessed at Kforces web site at (select Investor Relations). The webcast replay will be available until August 17, 2011.
About Kforce
Kforce is a professional staffing and solutions firm providing flexible and permanent staffing solutions in the skill areas of technology, finance & accounting, and health and life sciences. Backed by more than 2,100 associates and approximately 10,200 consultants on assignment, Kforce is committed to Great People = Great Results for our valued clients and candidates. Kforce operates with 64 offices located throughout the United States and one office in the Philippines. For more information, please visit our Web site at .
The Kforce Inc. logo is available at
About Kforce Government Solutions (KGS)
KGS provides innovative technology, financial management, data architecture and continuous process improvement and finance and accounting solutions primarily to federal government clients. KGS, with approximately 600 professionals currently on assignment, has been partnering with our clients since 1970 to successfully solve their challenges. KGS in-depth operational knowledge and understanding of Federal Agencies, the Defense Department, Homeland Security and industry best practices,vibram five fingers bikila. combined with expert and highly-skilled professionals, have resulted in a comprehensive portfolio of technologically advanced and innovative consulting solutions designed to guide clients through todays environment of complex challenges, risk, and cost. For more information, visit .
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the staffing industry and general economy; competitive ctors, risks due to shifts in the market demand, including runescape money, without limitation, shifts in demand for our Technology, Finance and Accounting, Health and Life Sciences and Government Solutions segments, as well as the market for search and flexible staffing assignments; changes in the service mix; ability of the Firm to complete acquisitions; and the risk ctors listed from time to time in the Firms reports filed with the Securities and Exchange Commission, as well as assumptions regarding the foregoing. In particular, there can be no assurance that we will continue to increase our market share, successfully manage risks to our revenue stream and successfully put into place the people and processes that will create future success. The words should, believe, estimate, expect, intend, anticipate, foresee, plan and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Firm undertakes no obligation to publicly update or revise any forward-looking statements. As a result, such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those indicated in the forward-looking statements as a result of various ctors. Readers are cautioned not to place undue reliance on these forward-looking statements.
Kforce Inc. Summary of Operations (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended ———————————- Jun. 30, Mar. 31, Jun. 30, 2011 2011 2010 ———- ———- ———- Revenue by function: Technology $ 154,534 $ 143,180 $ 134,091 Finance & accounting 54,774 53,832 43,434 Health & life sciences 42,735 42,023 41,521 Government solutions 21,946 23,353 27,091 ———- ———- ———- Total revenue 273,989 262,388 246,137 Revenue by time: Flex 261,808 252,289 236,270 Search 12,181 10,099 9,867 ———- ———- ———- Total revenue 273,989 262,388 246,137 Costs of services 187,341 183,875 167,742 ———- ———- ———- Gross profit 86,648 78,513 78,395 GP % 31.6% 29.9% 31.9% Flex GP % 28.4% 27.1% 29.0% Selling, general & administrative expenses 72,163 67,223 66,222 Depreciation & amortization 3,211 3,336 3,137 ———- ———- ———- Income from operations 11,274 7,954 9,036 Other expense, net 335 316 269 ———- ———- ———- Income before income taxes 10,939 7,638 8,767 Income tax expense 4,154 2,798 3,623 ———- ———- ———- Net income $ 6,785 $ 4,840 $ 5,144 ========== ========== ========== Earnings per share – diluted $ 0.17 $ 0.12 $ 0.13 Adjusted EBITDA per share $ 0.43 $ 0.34 $ 0.34 Shares outstanding – diluted 40,465 40,897 40,532 Adjusted EBITDA $ 17,276 $ 14,088 $ 13,734 Other information: Capital expenditures $ 1,400 $ 1,704 $ 31,340 Equity-based compensation expense, net $ 1,762 $ 1,790 $ 1,096 Working capital $ 71,969 $ 64,761 $ 79,453 Selected balance sheet information: Cash and cash equivalents $ 685 $ 448 $ 410 Accounts receivable, less allowances $ 166,724 $ 163,151 $ 142,912 Total assets $ 404,923 $ 402,798 $ 386,067 Bank debt $ 18,934 $ 25,340 $ 38,000 Total liabilities $ 147,061 $ 149,199 $ 146,693 Total stockholders equity $ 257,862 $ 253,599 $ 239,375 Billing days 64 63 64
Kforce Inc. Key Statistics (Unaudited) Q2 2011 Q1 2011 Q2 2010 ———- ———- ———- Total Firm ——————- Flex revenue (000s) $ 261,808 $ 252,289 $ 236,270 Revenue per billing day (000s) $ 4,091 $ 4,005 $ 3,692 Sequential flex revenue change 3.8% 2.0% 8.0% Hours (000s) 4,581 4,473 4,014 Flex GP % 28.4% 27.1% 29.0% Search revenue (000s) $ 12,181 $ 10,099 $ 9,867 Placements 933 741 751 Average fee $ 13,058 $ 13,627 $ 13,134 Billing days 64 63 64 Technology ——————- Flex revenue (000s) $ 149,997 $ 139,413 $ 129,961 Revenue per billing day (000s) $ 2,344 $ 2,213 $ 2,031 Sequential flex revenue change 7.6% 0.7% 11.6% Hours (000s) 2,403 2,273 2,065 Flex GP % 27.1% 26.2% 27.5% Search revenue (000s) $ 4,537 $ 3,767 $ 4,130 Placements 313 266 275 Average fee $ 14,488 $ 14,166 $ 14,990 Finance & Accounting ——————- Flex revenue (000s) $ 47,522 $ 47,865 $ 38,152 Revenue per billing day (000s) $ 743 $ 760 $ 596 Sequential flex revenue change -0.7% 0.7% 6.8% Hours (000s) 1,393 1,415 1,157 Flex GP % 29.5% 27.3% 29.7% Search revenue (000s) $ 7,252 $ 5,967 $ 5,282 Placements 594 457 453 Average fee $ 12,218 $ 13,052 $ 11,665 Health & Life Sciences ——————- Flex revenue (000s) $ 42,343 $ 41,658 $ 41,066 Revenue per billing day (000s) $ 662 $ 661 $ 642 Sequential flex revenue change 1.6% 9.2% 2.6% Hou60 70 leveling guiders (000s) 522 530 491 Flex GP % 30.4% 28.9% 30.6% Search revenue (000s) $ 392 $ 365 $ 455 Placements 26 18 23 Average fee $ 15,004 $ 20,268 $ 19,858 Government Solutions ——————- Flex revenue (000s) $ 21,946 $ 23,353 $ 27,091 Revenue per billing day (000s) $ 343 $ 371 $ 423 Sequential flex revenue change -6.0% 0.2% 2.1% Hours (000s) 263 255 301 Flex GP % 31.7% 29.3% 32.6%
Kforce Inc. Key Statistics – Health & Life Sciences (Unaudited) Q2 2011 Q1 2011 Q2 2010 ——— ——— ——— Clinical Research ————————- Flex revenue (000s) $ 25,742 $ 25,731 $ 27,488 Revenue per billing day (000s) $ 402 $ 408 $ 430 Sequential flex revenue change 0.0% 14.4% 1.9% Hours (000s) 270 272 295 Flex GP % 26.7% 26.4% 29.0% Search revenue (000s) $ 224 $ 298 $ 203 Placements 10 11 9 Average fee $ 22,433 $ 27,059 $ 22,cheap wow gold. 517 Health Information Management ————————- Flex revenue (000s) $ 16,601 $ 15,927 $ 13,578 Revenue per billing day (000s) $ 260 $ 253 $ 212 Sequential flex revenue change 4.2% 1.8% 3.9% Hours (000s) 252 258 196 Flex GP % 36.2% 33.0% 33.9% Search revenue (000s) $ 168 $ 67 $ 252 Placements 16 7 14 Average fee $ 10,408 $ 9,596 $ 18,137
Kforce Inc. Selected Financial Information and Reconciliations (In Thousands, Except Per Share Amounts) (Unaudited) Quarterly Adjusted EBITDA Three Months Ended ———————————————————- Jun. 30, Mar. 31, Jun. 30, 2011 2011 2010 —————— —————— —————— Per Per Per $ share $ share $ share ——— ——- ——— ——- ——— ——- Net income $ 6,785 $ 0.17 $ 4,840 $ 0.12 $ 5,144 $ 0.13 Depreciation & amortization 3,211 0.08 3,336 0.08 3,137 0.08 Amortization of restricted stock & PARS 2,837 0.07 2,821 0.07 1,511 0.03 Interest expense and other 289 0.01 293 0.00 319 0.01 Income tax expense 4,154 0.10 2,798 0.07 3,623 0.09 ——— ——- ——— ——- ——— ——- Adjusted EBITDA $ 17,276 $ 0.43 $ 14,088 $ 0.34 $ 13,734 $ 0.34 ========= ======= ========= ======= ========= ======= Weighted average shares outstanding – diluted 40,465 40,897 40,532 Adjusted EBITDA, a non-GAAP financial measure, is defined as net income before non-cash impairment charges, interest, income taxes, depreciation and amortization and amortization of stock-based compensation expense. Adjusted EBITDA should not be considered a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Quarterly Net Income before Equity-Based Compensation Expense Three Months Ended ———————————————————- Jun. 30, Mar. 31, Jun. 30, 2011 2011 2010 —————— —————— —————— Per Per Per $ share $ share $ share ——— ——- ——— ——- ——— ——- Net income $ 6,785 $ 0.17 $ 4,vibram five fingers review. 840 $ 0.12 $ 5,144 $ 0.13 Equity-based compensation expense, net: Alternative LTI expense 4 0.00 3 0.00 280 0.01 Amortization of restricted stock & PARS 2,837 0.07 2,821 0.07 1,511 0.03 Income tax benefit (1,079) (0.03) (1,034) (0.03) (695) (0.02) ——— ——- ——— ——- ——— ——- Equity-based compensation expense, net 1,762 0.04 1,790 0.04 1,096 0.02 ——— ——- ——— ——- ——— ——- Net income before equity-based compensation expense $ 8,547 $ 0.21 $ 6,630 $ 0.16 $ 6,240 $ 0.15 ========= ======= ========= ======= ========= ======= Weighted average shares outstanding – diluted 40,465 40,897 40,532 Net Income before Equity-Based Compensation Expense, a non-GAAP financial measure, is defined as net income before compensation expense incurred in conjunction with share-based payment awards and alternative long-term incentive awards. Kforce measures the cost of employee services received in exchange for an equity based award based on the grant-date ir value of the award (with limited exceptions). That cost is recognized over the period in which the employee is required to provide service in exchange for the award, which is usually the vesting period. Adjusted EBITDA and Net Income before Equity-Based Compensation Expense are key measures used by management to evaluate its operations and to provide useful information to investors. These measures should not be considered in isolation or as an alternative to net income, cash flows data or other financial statement information presented in the consolidated financial statements as indicators of financial performance or liquidity. These measurements are not determined in accordance with generally accepted accounting principles and are thus susceptible to varying calculations. The measures as presented may not be comparable to similarly titled measures of other companies.
This news release was distributed by GlobeNewswire,
SOURCE: Kforce Inc.
CONTACT: Michael R. Blackman Chief Corporate Development Officer (813) 552-2927
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