David L. Dunkel
Thank you, Michael. You can find additional information about Kforce in our 10-Q, 10-K and 8-K filings with the SEC.
We provide substantial disclosure in our release and our hope is that this will improve the dissemination of information about our performance and the quality of this call.
We are very pleased with both Q4 and full year 2011 results. Fourth quarter revenues of $285.6 million and earnings per share of $0.20 were both at the top end of our guidance.In the quarter, the firm also achieved several milestones, establishing record quarterly revenue per billing day marks for total revenue, Flex revenue, total Tech revenue and Tech Flex revenue. Kforce recorded revenue for the year ended December 31, 2011, of $1.1 billion, an increase of 12.1%. Net income was $27.2 million, which represents a year-over-year increase of 31.6%, and EPS was $0.70, a 37.3% increase. Total Technology revenue of $624 million and Tech Flex revenue of $606.2 million represent historical high watermarks for that business unit. We are optimistic about the firm's prospects in what we believe continues to be a secular shift towards a greater use of flexible staffing in an environment of high demand for skilled professionals. Looking back on 2011, we believe that the staffing industry performance has been significantly different than in previous economic cycles, further supporting the secular shift in super cycle theory. The unemployment rate among college degree workers is currently 4.2%, about half that of the overall U.S. rate of unemployment, and is substantially lower in several of the specialized skill sets Kforce specializes in, particularly in Technology. Our revenue footprint and domestic platform are focused in the areas of greatest demand in today's economy. We continue to benefit from our clients' desire for a flexible workforce during the slow economic recovery, combined with significant uncertainty in regulatory, tax and health care reform. All of this bodes well for the future of our firm.