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Tech Flex Revenue Up 7.8% Sequentially and 14.2% Year-Over-Year
Total Firm Revenues Up 5.6% Sequentially and 10.9% Year-Over-Year
Firm Announces Operational Streamlining Expected to Improve EPS 3 to 5 Cents Quarterly
TAMPA, Fla., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Kforce Inc. (Nasdaq:KFRC), a provider of professional staffing services and solutions, today announced results for its third quarter of 2013. Revenues for the quarter ended September 30, 2013 were $299.7 million compared to $283.7 million for the quarter ended June 30, 2013, an increase of 5.6%, and compared to $270.2 million for the quarter ended September 30, 2012, an increase of 10.9%. For the quarter ended September 30, 2013, Kforce reported net income of $9.0 million, or $0.27 per share, versus $6.9 million, or $0.21 per share, for the quarter ended June 30, 2013, an increase of 29.2% in net income and 28.6% in earnings per share. Net income and earnings per share for the third quarter of 2013 decreased 3.1% and increased 3.8%, respectively, versus net income of $9.3 million, or $0.26 per share, for the third quarter of 2012.
Additionally, during October 2013, the Firm commenced a plan to streamline its leadership and support structure to better align a higher percentage of roles closer to the customer. As a result of this realignment, the Firm is expected to incur one-time pre-tax charges related to severance, benefits and related costs in the range of $6 to $7 million during the fourth quarter. Additionally, the Firm expects these actions to improve quarterly earnings per share in the range of $0.03 to $0.05 per share from a reduction in Selling, General and Administrative expenses once all actions are complete.
David L. Dunkel, Chairman and Chief Executive Officer commented, "We are very pleased with our performance in the third quarter, as Kforce achieved record high quarterly revenues of $299.7 million and earnings per share of 27 cents driven by Tech Flex, our largest business segment, whose growth accelerated to 14.2% year-over-year. Given the many positive growth characteristics driving Tech Flex, we continue to invest in this service line. All of our businesses grew sequentially for the second consecutive quarter, driving year-over-year total revenue growth above 10%. The talent investments we have made are taking hold, demand is strong, and we expect an acceleration of year-over-year growth in Q4."