This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kforce Reports Fourth Quarter Revenue Of $258.5 Million And EPS Of $0.16

KGS provides innovative technology, financial management, data architecture 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, combined with expert and highly-skilled professionals, have resulted in a comprehensive portfolio of technology advanced and innovative consulting solutions designed to guide clients through today's environment of complex challenges, risk, and cost. For more information, visit http://www.kforcegov.com .

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 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 factors, risks due to shifts in the market demand, including, 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 factors listed from time to time in the Firm's 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 factors. 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
       
  Dec. 31, 2010 Sept. 30, 2010 Dec. 31, 2009
       
Revenue by function:      
Technology   $ 142,869  $ 141,930  $ 119,478
Finance & Accounting   53,449  50,170  39,896
Health & Life Sciences   38,864  41,229  37,481
Government Solutions   23,313  26,190  27,747
Total revenue 258,495 259,519 224,602
       
Revenue by time:      
Flexible 247,437 248,960 217,199
Perm 11,058 10,559 7,403
Total revenue 258,495 259,519 224,602
       
Costs of services 176,086 176,054 154,781
Gross profit  82,409  83,465  69,821
GP % 31.9% 32.2% 31.1%
Flex GP % 28.8% 29.3% 28.7%
       
Selling, general & administrative expenses 68,700 69,321 60,645
Depreciation & amortization 3,262 3,236 2,919
       
Income from operations 10,447 10,908 6,257
       
Other expense, net 266 387 249
       
Income before income taxes 10,181 10,521 6,008
       
Income tax expense 3,843 4,077 2,475
       
Net income   $ 6,338  $ 6,444  $ 3,533
       
Earnings per share - diluted  $ 0.16  $ 0.16  $ 0.09
Adjusted EBITDA per share  $ 0.37  $ 0.39  $ 0.24
Shares outstanding - diluted  40,848 40,384 39,803
       
Adjusted EBITDA   $ 15,207  $ 15,710  $ 9,628
       
Other information:      
Capital expenditures  $ 3,314  $ 3,345  $ 1,304
Equity-based compensation expense, net  $ 1,383  $ 1,171  $ 606
       
Billing days  61  64  61
 
 
Kforce Inc.
Summary of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
     
  Twelve Months Ended
     
  Dec. 31, 2010 Dec. 31, 2009
     
Revenue by function:    
Technology   $ 538,566  $ 467,824
Finance & Accounting   187,196  162,856
Health & Life Sciences   161,913  164,933
Government Solutions   103,132  114,523
Total revenue 990,807 910,136
     
Revenue by time:    
Flexible 951,430 881,734
Perm 39,377 28,402
Total revenue 990,807 910,136
     
Costs of services 678,393 624,157
Gross profit  312,414  285,979
GP % 31.5% 31.4%
Flex GP % 28.7% 29.2%
     
Selling, general & administrative expenses 265,183 251,268
Depreciation & amortization 12,611 11,673
     
Income from operations 34,620 23,038
     
Other expense, net 1,296 1,145
     
Income before income taxes 33,324 21,893
     
Income tax expense 12,690 9,020
     
Net income   $ 20,634  $ 12,873
     
Earnings per share - diluted  $ 0.51  $ 0.33
Adjusted EBITDA per share  $ 1.31  $ 1.07
Shares outstanding - diluted  40,503 39,330
     
Adjusted EBITDA   $ 53,225  $ 42,145
     
Other information:    
Capital expenditures  $ 39,857  $ 4,935
Equity-based compensation expense, net  $ 4,705  $ 5,197
     
Billing days  251  251
 
 
Kforce Inc.
Key Statistics
(Unaudited)
       
       
  Q4 2010 Q3 2010 Q4 2009
       
Total Firm      
Flex revenue (000's)  $ 247,437  $ 248,960  $ 217,199
Revenue per billing day (000's)  $ 4,056  $ 3,890  $ 3,561
Sequential flex revenue change -0.6% 5.4% -2.0%
Hours (000's)  4,427  4,303  3,713
Flex GP % 28.8% 29.3% 28.7%
       
Search revenue (000's)  $ 11,058  $ 10,559  $ 7,403
Placements   811  824  607
Average fee  $ 13,633  $ 12,819  $ 12,197
Billing days  61  64  61
       
Technology      
Flex revenue (000's)  $ 138,467  $ 137,326  $ 116,817
Revenue per billing day (000's)  $ 2,270  $ 2,146  $ 1,915
Sequential flex revenue change 0.8% 5.7% 1.8%
Hours (000's)  2,233  2,186  1,888
Flex GP % 28.0% 28.0% 27.0%
       
Search revenue (000's)  $ 4,402  $ 4,604  $ 2,661
Placements   309  311  205
Average fee  $ 14,257  $ 14,822  $ 12,964
       
Finance & Accounting      
Flex revenue (000's)  $ 47,512  $ 44,437  $ 35,432
Revenue per billing day (000's)  $ 779  $ 694  $ 581
Sequential flex revenue change 6.9% 16.5% -5.8%
Hours (000's)  1,447  1,340 1,103
Flex GP % 30.7% 30.9% 29.9%
       
Search revenue (000's)  $ 5,937  $ 5,733  $ 4,464
Placements   472  497  381
Average fee  $ 12,570  $ 11,533  $ 11,727
       
Health & Life Sciences      
Flex revenue (000's)  $ 38,145  $ 41,007  $ 37,203
Revenue per billing day (000's)  $ 625  $ 641  $ 610
Sequential flex revenue change -7.0% -0.1% -7.4%
Hours (000's)  504  493  416
Flex GP % 27.7% 28.8% 28.8%
       
Search revenue (000's)  $ 719  $ 222  $ 278
Placements  30  16  21
Average fee  $ 23,962  $ 13,876  $ 13,216
       
Government Solutions      
Flex revenue (000's)  $ 23,313  $ 26,190  $ 27,747
Revenue per billing day (000's)  $ 382  $ 409  $ 455
Sequential flex revenue change -11.0% -3.3% -4.9%
Hours (000's)  243  284 306
Flex GP % 32.0% 34.3% 34.7%
 
 
Kforce Inc.
Key Statistics - Health & Life Sciences
(Unaudited)
       
       
  Q4 2010 Q3 2010 Q4 2009
       
Clinical Research      
Flex revenue (000's)  $ 22,497  $ 26,331  $ 23,874
Revenue per billing day (000's)  $ 369  $ 412  $ 391
Sequential flex revenue change -14.6% -4.2% -10.1%
Hours (000's)  249  282  262
Flex GP % 24.2% 26.6% 26.2%
       
Search revenue (000's)  $ 491  $ 92  $ 111
Placements   12  5  6
Average fee  $ 40,895  $ 18,333  $ 18,526
       
Health Information Management      
Flex revenue (000's)  $ 15,648  $ 14,676  $ 13,329
Revenue per billing day (000's)  $ 256  $ 229  $ 219
Sequential flex revenue change 6.6% 8.1% -2.1%
Hours (000's)  255  211  154
Flex GP % 32.7% 32.8% 33.3%
       
Search revenue (000's)  $ 228  $ 130  $ 167
Placements   18  11  15
Average fee  $ 12,674  $ 11,850  $ 11,092
 
 
 Kforce Inc. 
 Consolidated Balance Sheets 
 (In Thousands) 
 (Unaudited) 
     
   Dec. 31, 2010   Dec. 31, 2009 
 ASSETS     
     
 Current Assets:     
 Cash and cash equivalents   $ 1,055  $ 2,812
 Trade receivables, net of allowances  148,507  123,144
 Income tax refund receivable  5,675  246
 Deferred tax asset, net  4,950  6,011
 Prepaid expenses and other current assets  5,014  4,924
 Total current assets   165,201  137,137
     
 Fixed assets, net   38,130  11,407
 Other assets, net   32,941  32,914
 Deferred tax asset, net   8,907  10,380
 Intangible assets, net   7,787  10,075
 Goodwill   138,078  137,912
 Total assets   $ 391,044  $ 339,825
     
 LIABILITIES AND STOCKHOLDERS' EQUITY     
     
 Current Liabilities:     
 Accounts payable and other accrued liabilities   $ 30,602  $ 25,437
 Accrued payroll costs   54,461  50,690
 Current debt - credit facility   10,825  -- 
 Other current liabilities   4,185  2,807
 Income taxes payable   250  279
 Total current liabilities   100,323  79,213
     
 Long-term debt - credit facility   --   3,000
 Long-term debt - other   2,103  1,784
 Other long-term liabilities   34,801  29,103
 Total liabilities   137,227  113,100
     
 Commitments and contingencies     
     
 Stockholders' Equity:     
 Preferred stock   --  --
 Common stock   646  633
 Additional paid-in capital   355,888  338,890
 Accumulated other comprehensive loss   (1,480)  (1,213)
 Retained earnings   61,979  41,345
 Treasury stock, at cost   (163,216)  (152,930)
 Total stockholders' equity   253,817  226,725
 Total liabilities and stockholders' equity   $ 391,044  $ 339,825
 
 
Kforce Inc.
Selected Financial Information and Reconciliations
(In Thousands, Except Per Share Amounts)
(Unaudited)
               
Quarterly Adjusted EBITDA              
  Three Months Ended  
  Dec. 31, 2010 Sept. 30, 2010 Dec. 31, 2009  
  $ Per share $ Per share $ Per share  
               
Net income  $ 6,338  $ 0.16  $ 6,444  $ 0.16  $ 3,533  $ 0.09  
Depreciation & amortization  3,262   0.08  3,236  0.08  2,919  0.07  
Amortization of restricted stock & PARS  1,499   0.03  1,631  0.04  413  0.01  
Interest expense and other  265   0.01  322  0.01  288  0.01  
Income tax expense  3,843  0.09  4,077  0.10  2,475  0.06  
Adjusted EBITDA  $ 15,207  $ 0.37  $ 15,710  $ 0.39  $ 9,628  $ 0.24  
               
Weighted average shares outstanding - diluted  40,848    40,384    39,803    

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
  Dec. 31, 2010 Sept. 30, 2010 Dec. 31, 2009
  $ Per share $ Per share $ Per share
             
Net income  $ 6,338  $ 0.16  $ 6,444  $ 0.16  $ 3,533  $ 0.09
Equity-based compensation expense, net:            
Alternative LTI expense  722  0.02  281  0.01  617  0.01
Amortization of restricted stock & PARS  1,499  0.03  1,631  0.04  413  0.01
Income tax benefit  (838)  (0.02)  (741)  (0.02)  (424)  (0.01)
Equity-based compensation expense, net  1,383  0.03  1,171  0.03  606  0.01
Net income before equity-based compensation expense  $ 7,721  $ 0.19  $ 7,615  $ 0.19  $ 4,139  $ 0.10
             
Weighted average shares outstanding - diluted  40,848    40,384    39,803  

"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 fair 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.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs