Kforce Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kforce Inc. has filed its 2023 10-K annual report, detailing its financial performance and operations.</b>

AI Summary

KFORCE INC (KFRC) filed a Annual Report (10-K) with the SEC on February 23, 2024. Kforce Inc. filed its annual report for the fiscal year ending December 31, 2023. The filing is a 10-K report, providing a comprehensive overview of the company's financial performance and condition. The report covers the fiscal years 2023, 2022, and 2021. Kforce Inc. is incorporated in Florida and operates in the Help Supply Services industry. The company's principal business address is in Tampa, Florida.

Why It Matters

For investors and stakeholders tracking KFORCE INC, this filing contains several important signals. This 10-K filing provides investors with crucial, audited financial data for Kforce Inc. for the fiscal year 2023, enabling informed investment decisions. The detailed financial statements and risk factors within the report offer insights into the company's operational health and potential challenges in the staffing and IT services sector.

Risk Assessment

Risk Level: medium — KFORCE INC shows moderate risk based on this filing. The company operates in the competitive staffing and IT services industry, which is subject to economic fluctuations and evolving technological demands, as indicated by the nature of its business and industry classification.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess Kforce Inc.'s performance and outlook in the dynamic staffing and IT services market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-23 — Filing Date (Filed as of date)
• 7363 — SIC Code (Standard Industrial Classification for Help Supply Services)
• 1150 ASSEMBLY DRIVE — Business Address (Street 1 of business address)
• SUITE 500 — Business Address (Street 2 of business address)
• TAMPA — Business Address (City of business address)
• FL — Business Address (State of business address)
• 33607 — Business Address (ZIP code of business address)

Key Players & Entities

• KFORCE INC (company) — Filer name
• KFRC (company) — Ticker symbol
• 7363 (industry) — Standard Industrial Classification for Help Supply Services
• FL (location) — State of incorporation and business address
• Tampa (location) — City for business and mail address
• 2023-12-31 (date) — Conformed period of report
• 2024-02-23 (date) — Filed as of date
• 1150 ASSEMBLY DRIVE (address) — Business street address

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 per share KFRC NASDAQ SECURITIES REGI
• $1.4 billion — ar-over-year (7.8% per billing day), to $1.4 billion in 2023. Although we experienced a decl
• $90 — ourth quarter of 2023 was approximately $90 per hour, which remained stable as comp
• $51 — average bill rate in our FA business of $51 per hour in the fourth quarter of 2023,
• $46 — th quarter of 2023, which improved from $46 per hour, or 9.8%, as compared to the f
• $37 — to the fourth quarter of 2022 and from $37 per hour, or 37.8%, as compared to the
• $147.2 million — for our FA business decreased 27.5% to $147.2 million in 2023 compared to 2022, which was pri
• $43 billion — ected to generate projected revenues of $43 billion and $9 billion, respectively, in 2024.
• $9 b — e projected revenues of $43 billion and $9 billion, respectively, in 2024. Based on
• $500 billion — World has indicated it is greater than $500 billion. While the portion that is addressable
• $9 billion — cantly greater than the $43 billion and $9 billion for the technology and finance and acco

Filing Documents

• kfrc-20231231.htm (10-K) — 1368KB
• exhibit21_2023kforcesubsid.htm (EX-21) — 6KB
• exhibit23_2023consentofind.htm (EX-23) — 3KB
• exhibit311q42023.htm (EX-31.1) — 8KB
• exhibit312q42023.htm (EX-31.2) — 8KB
• exhibit321q42023.htm (EX-32.1) — 4KB
• exhibit322q42023.htm (EX-32.2) — 4KB
• exhibit97clawbackpolicy.htm (EX-97) — 28KB
• kfrc-20231231_g1.jpg (GRAPHIC) — 30KB
• kfrc-20231231_g2.jpg (GRAPHIC) — 370KB
• kfrcsmalllogoa.jpg (GRAPHIC) — 19KB
• 0000930420-24-000019.txt (&nbsp;) — 7596KB
• kfrc-20231231.xsd (EX-101.SCH) — 47KB
• kfrc-20231231_cal.xml (EX-101.CAL) — 83KB
• kfrc-20231231_def.xml (EX-101.DEF) — 199KB
• kfrc-20231231_lab.xml (EX-101.LAB) — 596KB
• kfrc-20231231_pre.xml (EX-101.PRE) — 406KB
• kfrc-20231231_htm.xml (XML) — 765KB

Business

Item 1. Business. 2

Risk Factors

Item 1A. Risk Factors. 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 12 Item 1C. C ybersecurity 12

Properties

Item 2. Properties. 13

Legal Proceedings

Item 3. Legal Proceedings. 13

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 13 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 13

[Reserved.]

Item 6. [Reserved.] 14

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 15

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 25

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 25

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 45

Controls and Procedures

Item 9A. Controls and Procedures. 46

Other Information

Item 9B. Other Information. 46

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 46 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. 46

Executive Compensation

Item 11. Executive Compensation. 47

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 47

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 47

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services. 47 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules. 47

Form 10-K Summary

Item 16. Form 10-K Summary 48

SIGNATURES

SIGNATURES 51 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS References in this document to the "Registrant," "Kforce," the "Company," "we," the "Firm," "management," "our" or "us" refer to Kforce Inc. and its subsidiaries, except where the context otherwise requires or indicates. This report, particularly Item 1. Business, Item 1A. Risk Factors and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), and the documents we incorporate into this report, contain certain statements that are, or may be deemed to be, forward-looking statements 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 (the "Exchange Act"), and are made in reliance upon the protections provided by such acts for forward-looking statements. Such statements may include, but may not be limited to: expectations of financial or operational performance, including our expectations regarding the future changes in revenue of each segment of our business; the impact of the economic environment on our business; our ability to control discretionary spending and decrease operating costs; the Firm's commitment and ability to return significant capital to its shareholders; our ability to meet capital expenditure and working capital requirements of our operations; the intent and ability to declare and pay quarterly dividends; growth rates in temporary staffing; a constraint in the supply of consultants and candidates or the Firm's ability to attract such individuals; changes in client demand for our services and our ability to adapt to such changes; the ability of the Firm to maintain and attract clients in the face of changing economic or competitive conditions; our expected investments in certain service areas or programs; our expectations regarding the impacts of technological development on our business; our beliefs regarding the expected future

BUSINESS

ITEM 1. BUSINESS. COMPANY OVERVIEW Kforce Inc., along with its subsidiaries (collectively, "Kforce"), is a solutions firm specializing in technology and finance and accounting professional staffing services. Our KNOWLEDGEforce empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who build 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 ("Flex") and permanent ("Direct Hire") basis. Kforce serves clients across a diverse set of industries and organizations of all sizes, but we place a particular focus on serving Fortune 500 and other large companies. Each year, over 20,000 talented consultants provide services to a significant majority of the Fortune 500. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing . Over the last decade, we have driven significant, strategic change at Kforce, including but not limited to, streamlining the focus of our business on providing technology talent solutions. In alignment with this goal, since 2008, we have completed various divestitures of businesses that did not relate to our core business. Our Technology and Finance and Accounting ("FA") businesses represent our two operating segments. Our Technology business comprises 90% of our overall revenues, and the remainder is generated by our FA business. For our Flex services, we provide our clients with qualified individuals ("consultants"), or teams of consultants, on a finite basis when the consultant's set of skills and experience is the right match for our clients. For our Direct Hire services, we identify qualified individuals ("candidates") for permanent placement with our clients. We further describe our two operating segments below.

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View this 10-K filing on SEC EDGAR