William L. Sanders, President, said, "Discussions with clients, as well as our internal key performance indicators (KPI's), indicate that demand continues to accelerate, particularly in Tech and FA. Accordingly, the Firm continues to focus its efforts on the optimization of the NRC, Strategic Accounts and field sales teams to take advantage of this strengthening demand. We believe that our strong sales and delivery operating platform and highly tenured sales population provides exceptional service to our clients. Kforce continues to aggressively pursue business opportunities with the goal of continuing to gain client and market share." Mr. Sanders noted additional operational results for the fourth quarter include:
- Flex revenue per billing day of $4.1 million in Q4 '10 increased 4.3% over Q3 '10 and increased 13.9% over Q4 '09.
- Flex revenue of $247.4 million in Q4 '10 decreased 0.6% from $249.0 million in Q3 '10 and increased 13.9% from $217.2 million in Q4 '09.
- Sequential percentage changes in Flex revenue on a billing day basis by segment were a 12.2% increase for FA, 5.8% increase for Tech, 2.5% decrease for HLS and 6.6% decrease for Government Solutions.
- Search revenue of $11.1 million in Q4 '10 increased 4.7% from $10.6 million in Q3 '10 and 49.4% from $7.4 million in Q4 '09.
- Sales associate headcount increased 0.3% sequentially and 7.6% year-over-year in Q4 '10 reflecting selective investments in our field sales, Strategic Accounts and NRC teams.
Joe Liberatore, Chief Financial Officer, said, "The Firm continued to perform well in Q4 '10, both in terms of revenue and earnings per share. Q4 '10 and Q4 '09 each contained 61 billings days while Q3 '10 contained 64 billing days. We believe our fourth 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, expanding bill/pay rate spreads, solid expense management and optimizing cash flow."