This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Kforce's CEO Discusses Q1 2011 Results - Earnings Call Transcript

Joe and I will be providing remarks and answering questions on today's call. Bill Sanders will not be participating today as he is working from home after having a voluntary planned procedure performed. We pray for and anticipate his speedy recovery.

We are pleased with our first quarter results as we move into the second year of this tenuous economic recovery. We are on track to meet our 2011 financial targets of 15% revenue growth and 50% EBIT growth. We are particularly pleased with the performance of Our Tech Flex, F&A Flex and HIM businesses in the leverage we are seeing from our investments in the National Recruiting Center in back-office platform, which are contributing to the improving trend in operating expenses.

Entering 2011, we anticipate an increase statutory payroll costs, and thus, have been extremely focused on margins and pricing. Our actual statutory cost increases was significantly higher than expected and we were unable to completely pass these costs through during the quarter. The sequential impact of the increased costs was approximately $0.08, including billable and core employees versus the $0.05 originally anticipated.

We are continuing to focus on margins and pricing and expect improvement throughout the rest of the year. We believe Kforce is well-positioned to service our clients increasing desire for a more flexible workforce during this unique, temporary employment leg recovery, which we believe may contribute to a sustained, secular shift towards a flexible staffing model. We believe temporary staffing penetration of the workforce may achieve historic highs in the U.S. in this cycle. We continue to see recovery or a disproportionate amount of private sector hiring is being created through the temp sector.

Additionally, many economists recently tempered their GDP expectation for the U.S. economy, which may result in client turning increasingly to flexible staffing, which allows them to quickly adjust to this constantly-shifting economic environment and the significant uncertainties surrounding regulatory, PAC and Healthcare reform.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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