Kforce Inc. Files Q3 2024 10-Q Report

TL;DR

Kforce Q3 2024 10-Q filed. Financials updated.

AI Summary

Kforce Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024 and provides financial details for the company. Key financial data and operational updates are presented for investors and stakeholders.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Kforce Inc., crucial for understanding the company's trajectory in the staffing and talent solutions sector.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• KFORCE INC (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period for the 10-Q
• 2024-10-30 (date) — Date the 10-Q was filed
• TAMPA (location) — City where Kforce Inc. is headquartered

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share KFRC New York Stock Exchange

Filing Documents

• kfrc-20240930.htm (10-Q) — 954KB
• exhibit311q32024.htm (EX-31.1) — 8KB
• exhibit312q32024.htm (EX-31.2) — 8KB
• exhibit321q32024.htm (EX-32.1) — 4KB
• exhibit322q32024.htm (EX-32.2) — 4KB
• kfrc-20240930_g1.jpg (GRAPHIC) — 30KB
• 0000930420-24-000210.txt ( ) — 4057KB
• kfrc-20240930.xsd (EX-101.SCH) — 26KB
• kfrc-20240930_cal.xml (EX-101.CAL) — 49KB
• kfrc-20240930_def.xml (EX-101.DEF) — 65KB
• kfrc-20240930_lab.xml (EX-101.LAB) — 376KB
• kfrc-20240930_pre.xml (EX-101.PRE) — 247KB
• kfrc-20240930_htm.xml (XML) — 401KB

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. 15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 24

Controls and Procedures

Item 4. Controls and Procedures. 24 PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 24

Risk Factors

Item 1A. Risk Factors. 25

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 25

Other Information

Item 5. Other Information. 25

Exhibits

Item 6. Exhibits. 26

SIGNATURES

SIGNATURES 27 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 the stabilization of the economy on the Firm's business; the impacts of revenue and gross profit levels on SG&A expenses; our expectations regarding the effects of our strategic investments on operating margins and our position to achieve long-term goals; our expectations regarding the future changes in revenue and gross profit margins of each segment of our business; the impact of the macroeconomic 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 or retain talented associates for a higher demand environment in the future; cha

- 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 353,319 $ 373,122 $ 1,061,526 $ 1,168,309 Direct costs 254,752 269,661 768,736 840,606 Gross profit 98,567 103,461 292,790 327,703 Selling, general and administrative expenses 78,308 86,226 234,216 258,558 Depreciation and amortization 1,543 1,202 4,431 3,776 Income from operations 18,716 16,033 54,143 65,369 Other expense, net 429 181 1,589 1,539 Income from operations, before income taxes 18,287 15,852 52,554 63,830 Income tax expense 4,078 5,277 13,201 18,471 Net income $ 14,209 $ 10,575 $ 39,353 $ 45,359 Earnings per share – basic $ 0.76 $ 0.55 $ 2.11 $ 2.35 Earnings per share – diluted $ 0.75 $ 0.54 $ 2.08 $ 2.31 Weighted average shares outstanding – basic 18,578 19,158 18,666 19,317 Weighted average shares outstanding – diluted 18,823 19,518 18,878 19,621 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) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 127 $ 119 Trade receivables, net of allowances of $ 1,579 and $ 1,643 , respectively 229,259 233,428 Prepaid expenses and other current assets 10,553 10,912 Total current assets 239,939 244,459 Fixed assets, net 8,267 9,418 Other assets, net 90,614 75,924 Deferred tax assets, net 5,990 3,138 Goodwill 25,040 25,040 Total assets $ 369,850 $ 357,979 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued liabilities $ 60,265 $ 64,795 Accrued payroll costs 46,442 33,968 Current portion of operating lease liabilities 3,325 3,589 Income taxes payabl

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