Kforce Inc. Files Q2 2024 10-Q Report

TL;DR

Kforce's Q2 10-Q is in - check financials for latest performance.

AI Summary

Kforce Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position. Key financial data points and disclosures relevant to investors are included in this quarterly report.

Why It Matters

This 10-Q filing provides investors with an update on Kforce Inc.'s financial health and operational performance for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 20240731 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• KFORCE INC (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240731 (date) — Filing date
• TAMPA (location) — Company headquarters city

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share KFRC New York Stock Exchange
• $708.2 million — ended June 30, 2024 decreased 10.9% to $708.2 million from $795.2 million in the comparable p
• $795.2 million — decreased 10.9% to $708.2 million from $795.2 million in the comparable period in 2023. Reven
• $693.5 million — ended June 30, 2024 decreased 10.4% to $693.5 million from $774.0 million in the comparable p
• $774.0 million — decreased 10.4% to $693.5 million from $774.0 million in the comparable period in 2023. Flex
• $14.7 million — ended June 30, 2024 decreased 30.6% to $14.7 million from $21.2 million in the comparable pe
• $21.2 million — 4 decreased 30.6% to $14.7 million from $21.2 million in the comparable period in 2023. Gros
• $25.1 m — ended June 30, 2024 decreased 27.7% to $25.1 million, or $1.33 per share, from $34.8 m
• $1.33 — 24 decreased 27.7% to $25.1 million, or $1.33 per share, from $34.8 million, or $1.77
• $34.8 m — $25.1 million, or $1.33 per share, from $34.8 million, or $1.77 per s
• $1.77 — $1.33 per share, from $34.8 million, or $1.77 per s

Filing Documents

• kfrc-20240630.htm (10-Q) — 882KB
• exhibit311q22024.htm (EX-31.1) — 8KB
• exhibit312q22024.htm (EX-31.2) — 8KB
• exhibit321q22024.htm (EX-32.1) — 4KB
• exhibit322q22024.htm (EX-32.2) — 4KB
• kfrc-20240630_g1.jpg (GRAPHIC) — 30KB
• 0000930420-24-000159.txt ( ) — 3936KB
• kfrc-20240630.xsd (EX-101.SCH) — 26KB
• kfrc-20240630_cal.xml (EX-101.CAL) — 49KB
• kfrc-20240630_def.xml (EX-101.DEF) — 65KB
• kfrc-20240630_lab.xml (EX-101.LAB) — 375KB
• kfrc-20240630_pre.xml (EX-101.PRE) — 246KB
• kfrc-20240630_htm.xml (XML) — 381KB

Financial Statements

Item 1. Financial Statements. 3

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 14

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 22

Controls and Procedures

Item 4. Controls and Procedures. 23 PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 23

Risk Factors

Item 1A. Risk Factors. 23

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 24

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 24

Other Information

Item 5. Other Information. 24

Exhibits

Item 6. Exhibits. 25

SIGNATURES

SIGNATURES 26 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS References in this document to the "Registrant," "Kforce," the "Company," the "Firm," "management," "we," "our" or "us" refer to Kforce Inc. and its subsidiaries, except where the context otherwise requires or indicates. This report, particularly Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), and Part II, Item 1A. Risk Factors, 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 the possibility and potential effects of an economic recession on the Firm's business; the impacts of SG&A deleveraging in connection with expected demand for the Firm's services; our expectations regarding the effects of our strategic investments on operating margins; 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

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. KFORCE INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS ) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue $ 356,318 $ 389,190 $ 708,207 $ 795,187 Direct costs 257,345 278,924 513,984 570,945 Gross profit 98,973 110,266 194,223 224,242 Selling, general and administrative expenses 77,718 82,993 155,908 172,332 Depreciation and amortization 1,555 1,340 2,888 2,574 Income from operations 19,700 25,933 35,427 49,336 Other expense, net 504 313 1,160 1,358 Income from operations, before income taxes 19,196 25,620 34,267 47,978 Income tax expense 5,039 7,046 9,123 13,194 Net income $ 14,157 $ 18,574 $ 25,144 $ 34,784 Earnings per share – basic $ 0.76 $ 0.96 $ 1.34 $ 1.79 Earnings per share – diluted $ 0.75 $ 0.95 $ 1.33 $ 1.77 Weighted average shares outstanding – basic 18,696 19,341 18,711 19,398 Weighted average shares outstanding – diluted 18,886 19,611 18,903 19,638 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents KFORCE INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 110 $ 119 Trade receivables, net of allowances of $ 1,646 and $ 1,643 , respectively 230,714 233,428 Prepaid expenses and other current assets 8,310 10,912 Total current assets 239,134 244,459 Fixed assets, net 8,526 9,418 Other assets, net 85,386 75,924 Deferred tax assets, net 4,599 3,138 Goodwill 25,040 25,040 Total assets $ 362,685 $ 357,979 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued liabilities $ 58,359 $ 64,795 Accrued payroll costs 39,589 33,968 Current portion of operating lease liabilities 3,384 3,589 Income taxes payable 1,499 623 Total cur

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. EXECUTIVE SUMMARY The following is an executive summary of what Kforce believes are highlights as of and for the six months ended June 30, 2024, which should be considered in the context of the additional discussions herein and in conjunction with the unaudited condensed consolidated financial statements and notes thereto. Revenue for the six months ended June 30, 2024 decreased 10.9% to $708.2 million from $795.2 million in the comparable period in 2023. Revenue decreased 9.3% and 25.6% for Technology and FA, respectively, primarily driven by the ongoing macroeconomic uncertainty. Flex revenue for the six months ended June 30, 2024 decreased 10.4% to $693.5 million from $774.0 million in the comparable period in 2023. Flex revenue decreased 9.0% for Technology and 25.3% for FA. These decreases were driven by a decrease in the number of consultants on assignment. Direct Hire revenue for the six months ended June 30, 2024 decreased 30.6% to $14.7 million from $21.2 million in the comparable period in 2023. Gross profit margin for the six months ended June 30, 2024 decreased 80 basis points to 27.4% from 28.2% in the comparable period in 2023 as a result of a decline in Direct Hire mix and a decline in Flex gross profit margin. Flex gross profit margin for the six months ended June 30, 2024 decreased 30 basis points to 25.9% from 26.2% in the comparable period in 2023. SG&A expenses as a percentage of revenue for the six months ended June 30, 2024 increased to 22.0% from 21.7% in the comparable period in 2023. Net income for the six months ended June 30, 2024 decreased 27.7% to $25.1 million, or $1.33 per share, from $34.8 million, or $1.77 per s

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View this 10-Q filing on SEC EDGAR