Kforce Reports Fourth Quarter 2024 Revenue of $343.8 Million; Full Year 2024 EPS of $2.68 Per Share; Board of Directors Approves Increase in Quarterly Dividend for Sixth Consecutive Year
Kforce (NYSE: KFRC) reported Q4 2024 revenue of $343.8 million, down from $363.4 million in Q4 2023. The company's Technology Flex revenue decreased 3.7% year-over-year, while FA Flex revenue declined 22.1%. Q4 2024 diluted earnings per share was $0.60, dropping 26.8% year-over-year.
For full-year 2024, revenue reached $1.41 billion compared to $1.53 billion in 2023, with Technology revenue declining 6.6% to $1.29 billion. Full-year EPS was $2.68, down 14.4% from 2023. The company returned $64.7 million to shareholders through $36.5 million in share repurchases and $28.2 million in dividends.
The Board approved a dividend increase for the sixth consecutive year to $0.39 per share. For Q1 2025, Kforce projects revenue between $330-338 million and EPS of $0.44-$0.52.
Kforce (NYSE: KFRC) ha riportato un fatturato per il quarto trimestre del 2024 di $343,8 milioni, in calo rispetto ai $363,4 milioni del quarto trimestre del 2023. I ricavi della tecnologia Flex della società sono diminuiti del 3,7% su base annua, mentre i ricavi FA Flex sono calati del 22,1%. L'utile per azione diluito nel quarto trimestre del 2024 è stato di $0,60, con una diminuzione del 26,8% anno su anno.
Per l'intero anno 2024, il fatturato ha raggiunto $1,41 miliardi rispetto a $1,53 miliardi nel 2023, con i ricavi dalla tecnologia in calo del 6,6% a $1,29 miliardi. L'utile per azione dell'intero anno è stato di $2,68, in calo del 14,4% rispetto al 2023. L'azienda ha restituito $64,7 milioni agli azionisti attraverso $36,5 milioni in riacquisti di azioni e $28,2 milioni in dividendi.
Il Consiglio ha approvato un aumento del dividendo per il sesto anno consecutivo a $0,39 per azione. Per il primo trimestre del 2025, Kforce prevede un fatturato compreso tra $330 e $338 milioni e un utile per azione di $0,44-$0,52.
Kforce (NYSE: KFRC) reportó ingresos del cuarto trimestre de 2024 de $343.8 millones, una disminución respecto a los $363.4 millones en el cuarto trimestre de 2023. Los ingresos de Tecnología Flex de la compañía disminuyeron un 3.7% interanual, mientras que los ingresos de FA Flex cayeron un 22.1%. Las ganancias por acción diluidas para el cuarto trimestre de 2024 fueron de $0.60, una caída del 26.8% interanual.
Para el año completo de 2024, los ingresos alcanzaron $1.41 mil millones en comparación con $1.53 mil millones en 2023, con los ingresos de Tecnología disminuyendo un 6.6% a $1.29 mil millones. Las ganancias por acción del año completo fueron de $2.68, una disminución del 14.4% respecto a 2023. La compañía devolvió $64.7 millones a los accionistas mediante $36.5 millones en recompra de acciones y $28.2 millones en dividendos.
La Junta aprobó un aumento del dividendo por sexto año consecutivo a $0.39 por acción. Para el primer trimestre de 2025, Kforce proyecta ingresos entre $330 y $338 millones y EPS de $0.44 a $0.52.
Kforce (NYSE: KFRC)는 2024년 4분기 매출이 $343.8백만으로, 2023년 4분기 $363.4백만에서 감소했다고 보고했습니다. 회사의 기술 유연성 매출은 전년 대비 3.7% 감소했으며, FA 유연성 매출은 22.1% 줄었습니다. 2024년 4분기 희석 주당 순이익은 $0.60으로, 전년 대비 26.8% 감소했습니다.
2024년 전체 연간 매출은 $1.41억으로, 2023년 $1.53억 대비 감소하며, 기술 매출은 6.6% 감소하여 $1.29억에 이릅니다. 전체 연간 EPS는 $2.68로, 2023년 대비 14.4% 줄어들었습니다. 회사는 $36.5백만의 자사주 매입과 $28.2백만의 배당금으로 주주에게 $64.7백만을 반환했습니다.
이사회는 6년 연속으로 주당 배당금을 $0.39로 인상하는 것을 승인했습니다. 2025년 1분기 동안 Kforce는 매출을 $330-338백만으로, EPS를 $0.44-$0.52로 예상합니다.
Kforce (NYSE: KFRC) a rapporté un chiffre d'affaires au quatrième trimestre 2024 de $343,8 millions, en baisse par rapport à $363,4 millions au quatrième trimestre 2023. Les revenus de la technologie Flex de l'entreprise ont diminué de 3,7% d'une année sur l'autre, tandis que les revenus de FA Flex ont chuté de 22,1%. Le bénéfice par action dilué pour le quatrième trimestre 2024 était de $0,60, en baisse de 26,8% d'une année sur l'autre.
Pour l'année entière 2024, le chiffre d'affaires a atteint $1,41 milliard par rapport à $1,53 milliard en 2023, avec une baisse des revenus technologiques de 6,6% à $1,29 milliard. Le BPA pour l'année entière était de $2,68, en baisse de 14,4% par rapport à 2023. L'entreprise a retourné $64,7 millions aux actionnaires par le biais de $36,5 millions de rachats d'actions et de $28,2 millions de dividendes.
Le conseil a approuvé une augmentation du dividende pour la sixième année consécutive à $0,39 par action. Pour le premier trimestre 2025, Kforce projette un chiffre d'affaires entre $330 et $338 millions et un BPA de $0,44 à $0,52.
Kforce (NYSE: KFRC) meldete für das vierte Quartal 2024 Einnahmen von $343,8 Millionen, ein Rückgang von $363,4 Millionen im vierten Quartal 2023. Die Technologie Flex Einnahmen des Unternehmens sanken im Jahresvergleich um 3,7%, während die FA Flex Einnahmen um 22,1% zurückgingen. Der verwässerte Gewinn pro Aktie im vierten Quartal 2024 betrug $0,60 und fiel um 26,8% im Jahresvergleich.
Für das gesamte Jahr 2024 erreichten die Einnahmen $1,41 Milliarden, verglichen mit $1,53 Milliarden im Jahr 2023, wobei die Technologieeinnahmen um 6,6% auf $1,29 Milliarden sanken. Der Gewinn pro Aktie für das gesamte Jahr betrug $2,68 und fiel um 14,4% im Vergleich zu 2023. Das Unternehmen gab $64,7 Millionen an die Aktionäre zurück, darunter $36,5 Millionen für Aktienrückkäufe und $28,2 Millionen in Dividenden.
Der Vorstand genehmigte die Erhöhung der Dividende im sechsten Jahr in Folge auf $0,39 pro Aktie. Für das erste Quartal 2025 plant Kforce Einnahmen von $330 bis $338 Millionen und einen Gewinn pro Aktie von $0,44 bis $0,52。
- Board approved sixth consecutive annual dividend increase to $0.39 per share
- Returned $64.7 million to shareholders (75% of operating cash flows)
- Technology services demand stabilized throughout 2024
- Maintained strong balance sheet with healthy cash flows
- Q4 2024 revenue declined 5.4% YoY to $343.8M
- Q4 2024 EPS dropped 26.8% YoY to $0.60
- Full-year 2024 revenue decreased 7.8% to $1.41B
- Operating margins declined 70 basis points YoY to 5.0%
- Q1 2025 guidance suggests continued revenue decline
Insights
The Q4 2024 results present a nuanced picture of Kforce's market position and operational resilience. Despite macro headwinds, the Technology segment demonstrated remarkable stability with only a 3.7% YoY revenue decline, showcasing the company's strong positioning in its core market. This performance is particularly noteworthy given the broader technology sector's volatility.
Operating margins contracted to
The company's capital allocation strategy remains robust, returning
Looking ahead, the stabilization in technology services demand noted early in 2024 provides a foundation for potential growth as market conditions improve. The company's focus on maintaining high performance while advancing strategic initiatives suggests preparedness for market share gains when technology spending accelerates.
Joseph J. Liberatore, President and Chief Executive Officer, commented, “We have been operating in an uncertain macro environment for more than two years, though demand for our technology services stabilized early in 2024, and remained stable throughout the year. I am extremely proud of how our teams have operated in this relatively subdued environment as evidenced by our industry-leading performance in our Technology business yet again in 2024. Our teams have continued to persevere and make the necessary adjustments within the business to maintain these high levels of performance while also advancing our strategic initiatives. This should provide a great foundation moving forward to return to higher levels of profitability as revenues inflect.”
Mr. Liberatore continued, “We believe that we enter 2025 well positioned to take additional market share as we have been doing successfully for years and to continue laying the foundation to generate significant long-term returns for our shareholders. Our organic growth strategy has resulted in us carrying a strong balance sheet and generating healthy predictable cash flows. This has again put us in a great position to return significant capital to our shareholders through share repurchases and our quarterly dividend. Additionally, our Board of Directors recently approved an increase in our dividend for the 6th consecutive year to support our ongoing objective of returning capital. We are blessed to have a high performing team that is tenured, dedicated, and passionate, and I could not be more excited about the future of Kforce.”
Fourth Quarter 2024 Financial Highlights
-
Revenue for the quarter ended December 31, 2024 was
compared to$343.8 million for the quarter ended December 31, 2023.$363.4 million -
Technology Flex revenue decreased
2.5% sequentially (increased0.6% on a billing day basis) and3.7% year over year (5.2% on a billing day basis). FA Flex revenue decreased2.7% sequentially (increased0.5% on a billing day basis) and22.1% year over year (23.3% on a billing day basis). -
Gross profit margins of
27.0% decreased 90 basis points sequentially and 30 basis points year over year. Flex gross profit margins of25.5% decreased 80 basis points sequentially and 20 basis points year over year. -
Selling, general and administrative (“SG&A”) expenses as a percentage of revenue for the quarter ended December 31, 2024 was
22.0% , which decreased 20 basis points sequentially and increased 100 basis points year over year. -
Operating margins were
4.5% for the quarter ended December 31, 2024, which decreased 80 basis points sequentially and 150 basis points year over year. -
Diluted earnings per share for the quarter ended December 31, 2024 was
per share, a decrease of$0.60 20.0% sequentially and26.8% year over year.
Full Year 2024 Financial Highlights
-
Revenue for the year ended December 31, 2024 was
compared to$1.41 billion for the year ended December 31, 2023.$1.53 billion -
Technology revenue of
decreased$1.29 billion 6.6% year over year (7.4% on a billing day basis). -
Operating margins were
5.0% for the year ended December 31, 2024, which decreased 70 basis points year over year. Operating margins of5.0% for the year ended December 31, 2024 decreased 120 basis points from6.2% for the year ended December 31, 2023, as adjusted. -
Diluted earnings per share for the year ended December 31, 2024 were
per share, a decrease of$2.68 14.4% year over year. Diluted earnings per share were and$2.68 for the years ended December 31, 2024 and 2023, respectively, a decrease of$3.49 23.2% , as adjusted. -
We returned
of capital to our shareholders through$64.7 million of share repurchases and$36.5 million in dividends during the year ended December 31, 2024, which represented approximately$28.2 million 75% of operating cash flows.
Our Board of Directors recently approved an increase in our quarterly dividend, representing the sixth consecutive annual increase, to
First Quarter 2025 - Guidance
Looking forward to the first quarter of 2025, there will be 63 billing days compared to 62 billing days in the fourth quarter of 2024 and 64 billing days in the first quarter of 2024.
Current estimates for the first quarter of 2025 are:
-
Revenue of
to$330 million $338 million -
Earnings per share of
to$0.44 $0.52 -
Gross profit margin of
27.0% to27.2% -
Flex gross profit margin of
25.4% to25.6% -
SG&A expenses as a percent of revenue of
22.8% to23.0% -
Operating margin of
3.6% to4.0% - WASO of 18.5 million
-
Effective tax rate of
27.0%
Conference Call and Annual Meeting
On Monday, February 3, 2025, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (800) 715-9871 and the conference passcode is "Kforce." The prepared remarks for this call and webcast are available on the Investor Relations page of the Kforce Inc. website in the News and Events section. The replay of the call can be accessed at http://investor.kforce.com.
Our 2025 Annual Meeting of Kforce Inc. Shareholders will be held on Wednesday, April 23, 2025 at 1150 Assembly Drive, Suite 500,
About Kforce Inc.
Kforce Inc. (the “Firm”) is a solutions firm specializing in technology, finance and accounting, and other professional staffing services. Our KNOWLEDGEforce® empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who deliver solutions custom-tailored to each client’s needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise.
Our integrated approach is rooted in 60 years of proven success deploying highly skilled professionals on a temporary and direct-hire basis. Each year, approximately 18,000 talented experts work with Fortune 500 and other leading companies. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS |
All statements in this press release, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding our movement forward to return to higher levels of profitability, our taking of additional market share, our generation of significant long-term returns for our shareholders, our ability to return significant capital to our shareholders, our payment of dividends, the trends in the operating environment, and the Firm's guidance for the first quarter of 2025. 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 Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: general business conditions; growth rate in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand; changes in client demand or our ability to adapt to such changes; a constraint in the supply of consultants and candidates or the Firm’s ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares and issue dividends; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments or contracts, or funding under contracts; ability to comply with our obligations in a remote work environment; continued performance, security of, and improvements to our enterprise information systems; and impacts of actual or potential litigation or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm’s Form 10-K for the fiscal year ended December 31, 2023, as well as assumptions regarding the foregoing. The terms “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” ”plan” and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.
Kforce Inc. |
|||||||||
Summary of Operations |
|||||||||
(In Thousands, Except Per Share Amounts) |
|||||||||
(Unaudited) |
|||||||||
|
|
Three Months Ended |
|||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|||
Revenue |
|
$ |
343,782 |
|
$ |
353,319 |
|
$ |
363,447 |
Direct costs |
|
|
251,127 |
|
|
254,752 |
|
|
264,084 |
Gross profit |
|
|
92,655 |
|
|
98,567 |
|
|
99,363 |
Selling, general and administrative expenses |
|
|
75,586 |
|
|
78,308 |
|
|
76,375 |
Depreciation and amortization |
|
|
1,491 |
|
|
1,543 |
|
|
1,236 |
Income from operations |
|
|
15,578 |
|
|
18,716 |
|
|
21,752 |
Other expense, net |
|
|
508 |
|
|
429 |
|
|
332 |
Income from operations, before income taxes |
|
|
15,070 |
|
|
18,287 |
|
|
21,420 |
Income tax expense |
|
|
4,009 |
|
|
4,078 |
|
|
5,704 |
Net income |
|
$ |
11,061 |
|
$ |
14,209 |
|
$ |
15,716 |
|
|
|
|
|
|
|
|||
Earnings per share – diluted |
|
$ |
0.60 |
|
$ |
0.75 |
|
$ |
0.82 |
|
|
|
|
|
|
|
|||
Weighted average shares outstanding – diluted |
|
|
18,573 |
|
|
18,823 |
|
|
19,194 |
Adjusted EBITDA |
|
$ |
20,565 |
|
$ |
23,808 |
|
$ |
26,134 |
|
|
|
|
|
|
|
|||
Billing days |
|
|
62 |
|
|
64 |
|
|
61 |
Kforce Inc. |
||||||
Summary of Operations |
||||||
(In Thousands, Except Per Share Amounts) |
||||||
(Unaudited) |
||||||
|
|
Year Ended December 31, |
||||
|
|
2024 |
|
2023 |
||
Revenue |
|
$ |
1,405,308 |
|
$ |
1,531,756 |
Direct costs |
|
|
1,019,863 |
|
|
1,104,690 |
Gross profit |
|
|
385,445 |
|
|
427,066 |
Selling, general and administrative expenses |
|
|
309,802 |
|
|
334,933 |
Depreciation and amortization |
|
|
5,922 |
|
|
5,012 |
Income from operations |
|
|
69,721 |
|
|
87,121 |
Other expense, net |
|
|
2,097 |
|
|
1,871 |
Income from operations, before income taxes |
|
|
67,624 |
|
|
85,250 |
Income tax expense |
|
|
17,210 |
|
|
24,175 |
Net income |
|
$ |
50,414 |
|
$ |
61,075 |
|
|
|
|
|
||
Earnings per share – diluted |
|
$ |
2.68 |
|
$ |
3.13 |
|
|
|
|
|
||
Weighted average shares outstanding – diluted |
|
|
18,811 |
|
|
19,507 |
Adjusted EBITDA |
|
$ |
89,687 |
|
$ |
115,718 |
|
|
|
|
|
||
Billing days |
|
|
254 |
|
|
252 |
Kforce Inc. |
||||||||
Consolidated Balance Sheets |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
December 31, |
||||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
349 |
|
|
$ |
119 |
|
Trade receivables, net of allowances |
|
|
215,690 |
|
|
|
233,428 |
|
Prepaid expenses and other current assets |
|
|
9,367 |
|
|
|
10,912 |
|
Total current assets |
|
|
225,406 |
|
|
|
244,459 |
|
Fixed assets, net |
|
|
7,723 |
|
|
|
9,418 |
|
Other assets, net |
|
|
94,656 |
|
|
|
75,924 |
|
Deferred tax assets, net |
|
|
5,009 |
|
|
|
3,138 |
|
Goodwill |
|
|
25,040 |
|
|
|
25,040 |
|
Total assets |
|
$ |
357,834 |
|
|
$ |
357,979 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and other accrued liabilities |
|
$ |
61,753 |
|
|
$ |
64,795 |
|
Accrued payroll costs |
|
|
38,823 |
|
|
|
33,968 |
|
Current portion of operating lease liabilities |
|
|
3,038 |
|
|
|
3,589 |
|
Income taxes payable |
|
|
8,843 |
|
|
|
623 |
|
Total current liabilities |
|
|
112,457 |
|
|
|
102,975 |
|
Long-term debt – credit facility |
|
|
32,700 |
|
|
|
41,600 |
|
Other long-term liabilities |
|
|
58,059 |
|
|
|
54,324 |
|
Total liabilities |
|
|
203,216 |
|
|
|
198,899 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
738 |
|
|
|
734 |
|
Additional paid-in capital |
|
|
543,109 |
|
|
|
527,288 |
|
Retained earnings |
|
|
546,202 |
|
|
|
525,222 |
|
Treasury stock, at cost |
|
|
(935,431 |
) |
|
|
(894,164 |
) |
Total stockholders’ equity |
|
|
154,618 |
|
|
|
159,080 |
|
Total liabilities and stockholders’ equity |
|
$ |
357,834 |
|
|
$ |
357,979 |
|
Kforce Inc. |
||||||||||||
Key Statistics |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Q4 2024 |
|
Q3 2024 |
|
Q4 2023 |
||||||
Total Firm |
|
|
|
|
|
|
||||||
Total Revenue (000's) |
|
$ |
343,782 |
|
|
$ |
353,319 |
|
|
$ |
363,447 |
|
GP % |
|
|
27.0 |
% |
|
|
27.9 |
% |
|
|
27.3 |
% |
Flex revenue (000’s) |
|
$ |
337,104 |
|
|
$ |
345,832 |
|
|
$ |
355,611 |
|
Hours (000’s) |
|
|
3,941 |
|
|
|
4,008 |
|
|
|
4,208 |
|
Flex GP % |
|
|
25.5 |
% |
|
|
26.3 |
% |
|
|
25.7 |
% |
Direct Hire revenue (000’s) |
|
$ |
6,678 |
|
|
$ |
7,487 |
|
|
$ |
7,836 |
|
Placements |
|
|
322 |
|
|
|
342 |
|
|
|
378 |
|
Average fee |
|
$ |
20,756 |
|
|
$ |
21,907 |
|
|
$ |
20,727 |
|
Billing days |
|
|
62 |
|
|
|
64 |
|
|
|
61 |
|
Technology |
|
|
|
|
|
|
||||||
Total Revenue (000's) |
|
$ |
317,274 |
|
|
$ |
325,511 |
|
|
$ |
329,395 |
|
GP % |
|
|
26.1 |
% |
|
|
26.9 |
% |
|
|
26.1 |
% |
Flex revenue (000’s) |
|
$ |
314,019 |
|
|
$ |
322,118 |
|
|
$ |
325,992 |
|
Hours (000’s) |
|
|
3,488 |
|
|
|
3,553 |
|
|
|
3,628 |
|
Flex GP % |
|
|
25.3 |
% |
|
|
26.1 |
% |
|
|
25.4 |
% |
Direct Hire revenue (000’s) |
|
$ |
3,255 |
|
|
$ |
3,393 |
|
|
$ |
3,403 |
|
Placements |
|
|
171 |
|
|
|
156 |
|
|
|
179 |
|
Average fee |
|
$ |
19,022 |
|
|
$ |
21,813 |
|
|
$ |
19,051 |
|
Finance and Accounting |
|
|
|
|
|
|
||||||
Total Revenue (000's) |
|
$ |
26,508 |
|
|
$ |
27,808 |
|
|
$ |
34,052 |
|
GP % |
|
|
37.5 |
% |
|
|
39.8 |
% |
|
|
39.0 |
% |
Flex revenue (000’s) |
|
$ |
23,085 |
|
|
$ |
23,714 |
|
|
$ |
29,619 |
|
Hours (000’s) |
|
|
453 |
|
|
|
455 |
|
|
|
580 |
|
Flex GP % |
|
|
28.2 |
% |
|
|
29.4 |
% |
|
|
29.8 |
% |
Direct Hire revenue (000’s) |
|
$ |
3,423 |
|
|
$ |
4,094 |
|
|
$ |
4,433 |
|
Placements |
|
|
151 |
|
|
|
186 |
|
|
|
199 |
|
Average fee |
|
$ |
22,726 |
|
|
$ |
21,985 |
|
|
$ |
22,228 |
|
Kforce Inc.
Non-GAAP Financial Measures
(Unaudited)
In addition to our financial results presented in accordance with GAAP, Kforce may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. Our non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. We view these non-GAAP financial measures as supplemental, which are not intended to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Revenue Growth Rates
“Revenue growth rates,” a non-GAAP financial measure, is defined by Kforce as revenue growth after removing the impacts on reported revenues from the changes in the number of billing days. Management believes this data is particularly useful because it aids in evaluating revenue trends over time. The impact of billing days is calculated by dividing each comparative period’s reported revenues by the number of billing days for the respective period to arrive at a per billing day amount for each quarter. Growth rates are then calculated using the per billing day amounts as a percentage change compared to the respective period. Management calculates the number of billing days for each reporting period based on the number of holidays and business days in the quarter.
|
Sequential Growth Rates (GAAP) |
|||||||||
|
2024 |
|
2023 |
|||||||
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
Technology Flex |
|
(2.5)% |
|
(0.6)% |
|
|
|
(2.3)% |
|
(2.5)% |
FA Flex |
|
(2.7)% |
|
(4.1)% |
|
(5.7)% |
|
(11.5)% |
|
(1.0)% |
Total Flex revenue |
|
(2.5)% |
|
(0.8)% |
|
|
|
(3.1)% |
|
(2.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
Sequential Growth Rates (Non-GAAP) |
|||||||||
|
2024 |
|
2023 |
|||||||
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
Billing Days |
|
62 |
|
64 |
|
64 |
|
64 |
|
61 |
Technology Flex |
|
|
|
(0.6)% |
|
|
|
(6.9)% |
|
|
FA Flex |
|
|
|
(4.1)% |
|
(5.7)% |
|
(15.7)% |
|
|
Total Flex revenue |
|
|
|
(0.8)% |
|
|
|
(7.6)% |
|
|
|
|
Year-Over-Year Growth Rates (GAAP) |
||||||||||||
|
|
2024 |
|
2023 |
||||||||||
|
|
YTD |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
YTD |
|
Q4 |
Technology Flex |
|
(6.4)% |
|
(3.7)% |
|
(3.6)% |
|
(6.4)% |
|
(11.4)% |
|
(7.4)% |
|
(11.1)% |
FA Flex |
|
(23.5)% |
|
(22.1)% |
|
(20.7)% |
|
(23.1)% |
|
(27.2)% |
|
(27.6)% |
|
(28.0)% |
Total Flex revenue |
|
(7.9)% |
|
(5.2)% |
|
(5.0)% |
|
(7.8)% |
|
(12.8)% |
|
(9.6)% |
|
(12.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-Over-Year Growth Rates (Non-GAAP) |
||||||||||||
|
|
2024 |
|
2023 |
||||||||||
|
|
YTD |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
YTD |
|
Q4 |
Billing Days |
|
254 |
|
62 |
|
64 |
|
64 |
|
64 |
|
252 |
|
61 |
Technology Flex |
|
(7.1)% |
|
(5.2)% |
|
(5.1)% |
|
(6.4)% |
|
(11.4)% |
|
(7.1)% |
|
(11.1)% |
FA Flex |
|
(24.1)% |
|
(23.3)% |
|
(21.9)% |
|
(23.1)% |
|
(27.2)% |
|
(27.3)% |
|
(28.0)% |
Total Flex revenue |
|
(8.6)% |
|
(6.7)% |
|
(6.5)% |
|
(7.8)% |
|
(12.8)% |
|
(9.2)% |
|
(12.8)% |
Free Cash Flow
“Free Cash Flow,” a non-GAAP financial measure, is defined by Kforce as net cash provided by operating activities determined in accordance with GAAP, less capital expenditures. Management believes this provides an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and is useful information to investors as it provides a measure of the amount of cash generated from the business that can be used for strategic opportunities including investing in our business, repurchasing common stock, paying dividends or making acquisitions. Free Cash Flow is limited, however, because it does not represent the residual cash flow available for discretionary expenditures. Therefore, we believe it is important to view Free Cash Flow as a complement to (but not a replacement of) our consolidated statements of cash flows.
The following table presents Free Cash Flow:
|
Year Ended December 31, |
||||||
(in thousands) |
2024 |
|
2023 |
||||
Net cash provided by operating activities |
$ |
86,874 |
|
|
$ |
91,465 |
|
Capital expenditures |
|
(7,573 |
) |
|
|
(7,763 |
) |
Free cash flow |
|
79,301 |
|
|
|
83,702 |
|
Change in debt |
|
(8,900 |
) |
|
|
16,000 |
|
Repurchases of common stock |
|
(41,938 |
) |
|
|
(75,024 |
) |
Cash dividends |
|
(28,236 |
) |
|
|
(27,562 |
) |
Proceeds from company-owned life insurance |
|
2,377 |
|
|
|
— |
|
Premiums paid for company-owned life insurance |
|
(2,368 |
) |
|
|
(1,408 |
) |
Proceeds from the sale of our joint venture interest |
|
— |
|
|
|
5,059 |
|
Note receivable issued to our joint venture |
|
— |
|
|
|
(750 |
) |
Other |
|
(6 |
) |
|
|
(19 |
) |
Change in cash and cash equivalents |
$ |
230 |
|
|
$ |
(2 |
) |
Adjusted Financial Performance Measures
The "Adjusted Financial Performance Measures" present non-GAAP financial information and should not be considered a measure of financial performance under generally accepted accounting principles. These measures are presented as an alternative method for assessing our operating results in a manner that is focused on the performance of our underlying operations. Each of these measures is intended to provide greater consistency, comparability and clarity of our results. Management uses this non-GAAP financial information to assess our core operating results and consequently, management believes it is similarly useful information to investors. During the year ended December 31, 2024, the Firm did not have any adjusted financial performance measures.
|
|
Year Ended December 31, 2023 |
||||||||||
(In Thousands, Except Per Share Amounts) |
|
Reported (GAAP) |
|
Adjustments (1) |
|
As Adjusted (Non-GAAP) |
||||||
Reconciliation of SG&A and Operating Margin: |
|
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
$ |
334,933 |
|
|
$ |
(8,397 |
) |
|
$ |
326,536 |
|
SG&A as a percentage of revenue |
|
|
21.9 |
% |
|
|
(0.5 |
)% |
|
|
21.4 |
% |
Income from operations |
|
$ |
87,121 |
|
|
$ |
8,397 |
|
|
$ |
95,518 |
|
Operating margin |
|
|
5.7 |
% |
|
|
0.5 |
% |
|
|
6.2 |
% |
Reconciliation of Tax Impact and Profitability: |
|
|
|
|
|
|
||||||
Income from operations, before income taxes |
|
$ |
85,250 |
|
|
$ |
8,397 |
|
|
$ |
93,647 |
|
Income tax expense |
|
$ |
24,175 |
|
|
$ |
1,464 |
|
|
$ |
25,639 |
|
Effective tax rate |
|
|
28.4 |
% |
|
|
17.4 |
% |
|
|
27.4 |
% |
Net income |
|
$ |
61,075 |
|
|
$ |
6,933 |
|
|
$ |
68,008 |
|
Earnings per share – diluted |
|
$ |
3.13 |
|
|
$ |
0.36 |
|
|
$ |
3.49 |
|
(1) Adjustments included |
Adjusted EBITDA
“Adjusted EBITDA”, a non-GAAP financial measure, is defined by Kforce as net income before depreciation and amortization; stock-based compensation expense; interest expense, net; income tax expense; organizational realignment activities; legal settlement expense; and loss from equity method investment. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows or other financial statement information presented in the consolidated financial statements as indicators of financial performance or liquidity. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
In addition, although we excluded stock-based compensation expense because it is a non-cash expense, we expect to continue to incur stock-based compensation expense in the future and the associated stock issued may result in an increase in our outstanding shares of stock, which may result in the dilution of our shareholder ownership interest. We suggest that you evaluate these items and the potential risks of excluding such items when analyzing our financial position.
The following tables present Adjusted EBITDA and include a reconciliation of net income to Adjusted EBITDA:
|
|
Three Months Ended |
|||||||
(in thousands) |
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|||
Net income |
|
$ |
11,061 |
|
$ |
14,209 |
|
$ |
15,716 |
Depreciation and amortization |
|
|
1,491 |
|
|
1,543 |
|
|
1,236 |
Stock-based compensation expense |
|
|
3,496 |
|
|
3,549 |
|
|
3,145 |
Interest expense, net |
|
|
508 |
|
|
429 |
|
|
333 |
Income tax expense |
|
|
4,009 |
|
|
4,078 |
|
|
5,704 |
Adjusted EBITDA |
|
$ |
20,565 |
|
$ |
23,808 |
|
$ |
26,134 |
|
Year Ended December 31, |
||||
(in thousands) |
2024 |
|
2023 |
||
Net income |
$ |
50,414 |
|
$ |
61,075 |
Depreciation and amortization |
|
5,922 |
|
|
5,012 |
Stock-based compensation expense |
|
14,044 |
|
|
17,747 |
Interest expense, net |
|
2,097 |
|
|
1,122 |
Income tax expense |
|
17,210 |
|
|
24,175 |
Organizational realignment activities |
|
— |
|
|
3,662 |
Legal settlement expense |
|
— |
|
|
2,175 |
Loss from equity method investment |
|
— |
|
|
750 |
Adjusted EBITDA |
$ |
89,687 |
|
$ |
115,718 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250131011851/en/
Michael R. Blackman, Chief Corporate Development Officer
(813) 552-2927
Source: Kforce, Inc.
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