Kforce Reports Third Quarter Revenues Of $336.5 Million

TAMPA, Fla., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Kforce Inc. (Nasdaq:KFRC), a provider of professional staffing services and solutions, today announced results for its third quarter of 2016. Revenues for the quarter ended September 30, 2016 were $336.5 million compared to $335.0 million for the quarter ended June 30, 2016, an increase of 0.4%, and compared to $341.6 million for the quarter ended September 30, 2015, a decrease of 1.5%. Net income for the quarter ended September 30, 2016 was $9.0 million, or $0.34 per share, as compared to $10.9 million, or $0.41 per share, for the quarter ended June 30, 2016, and compared to $13.5 million, or $0.48 per share, for the quarter ended September 30, 2015. Third quarter results reflect after-tax severance related costs of approximately $2.6 million, or $0.10 per share, associated with certain realignment activities focused on further streamlining our organization.

David L. Dunkel, Chairman and CEO, said, "Revenues in the third quarter of $336.5 million were largely as anticipated across all business lines as we continued to make progress in diversifying our client portfolio. We are encouraged by the late-quarter and early October trends in our Tech and FA businesses that are providing momentum heading into the fourth quarter and should allow us to return to positive year-over-year growth overall and in our Tech Flex business. While we continue to believe that the T4 Next Gen contract vehicle could be an important growth vehicle for KGS, the initial group of awards were more concentrated than we anticipated with small businesses as a result of Congressional mandatory set-aside provisions requiring competition in certain instances to be restricted to service-disabled veteran-owned small businesses. As a result, KGS was not eligible to submit responses as a prime contractor on some task orders for which we believed it was well qualified."

Mr. Dunkel continued, "We have largely completed our realignment, which began earlier this year to consolidate our sales and delivery organization and certain revenue-enabling support functions. We believe this will allow us to more effectively compete for business, particularly with our largest customers. Our bias is to continue to invest in our business to generate long-term shareholder value. These investments include measured and balanced additions to our revenue-generating talent, enhanced training and tools as well as continued investments in technology to increase the effectiveness and efficiency of our people. I am very proud of our team and am confident that Kforce is well positioned for future growth. I want to thank all of our employees and consultants for your continued hard work and dedication and our clients for providing us the privilege of serving you."

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