Revenue Performance - Revenue for the nine months ended September 30, 2024 decreased 9.1% to $1.06 billion from $1.17 billion in the comparable period in 2023[38] - Flex revenue for the nine months ended September 30, 2024 decreased 8.7% to $1.04 billion from $1.14 billion in the comparable period in 2023[38] - Direct Hire revenue for the nine months ended September 30, 2024 decreased 26.4% to $22.2 million from $30.1 million in the comparable period in 2023[38] - Year-to-date revenue growth rates for Technology Flex and FA Flex were (7.2)% and (23.9)%, respectively, indicating a decline in performance compared to the previous year[52] Profitability Metrics - Net income for the nine months ended September 30, 2024 decreased 13.2% to $39.4 million, or $2.08 per share, from $45.4 million, or $2.31 per share, for the nine months ended September 30, 2023[38] - Flex gross profit margin for the nine months ended September 30, 2024 decreased 10 basis points to 26.0% from 26.1% in the comparable period in 2023[38] - For the three months ended September 30, 2024, the total gross profit percentage increased by 20 basis points to 27.9% compared to the same period in 2023, driven by improved Technology Flex gross profit margins[46] - The Flex gross profit percentage for the three months ended September 30, 2024, increased by 40 basis points to 26.3% compared to the same period in 2023, while it decreased by 10 basis points for the nine months ended September 30, 2024[47] - Technology Flex gross profit margins increased by 60 basis points for the three months ended September 30, 2024, primarily due to improvements in the spread between bill and pay rates and lower healthcare costs[47] - FA Flex gross profit margins decreased by 110 basis points for the three months ended September 30, 2024, primarily due to a tighter pricing environment and a greater mix of lower margin projects[47] - Adjusted EBITDA for the nine months ended September 30, 2024, was $69.1 million, a decrease of 22.9% from $89.6 million in the same period of 2023[62] Cash Flow and Financing - Cash provided by operating activities was $65.1 million during the nine months ended September 30, 2024, compared to $69.1 million for the same period in 2023[38] - Operating cash flows for the nine months ended September 30, 2024, were $65.1 million, down from $69.1 million in the same period of 2023, reflecting lower profitability levels and collections on trade receivables[64] - Total cash used in financing activities was $57.2 million for the nine months ended September 30, 2024, compared to $66.5 million in the same period of 2023, primarily due to a decrease in stock repurchases[64] - The company repurchased approximately 324 thousand shares of common stock at a total cost of approximately $20.3 million during the nine months ended September 30, 2024[67] - The company declared and paid quarterly dividends totaling $21.3 million ($1.14 per share) for the nine months ended September 30, 2024, representing a 6% increase per share compared to $20.9 million ($1.08 per share) in 2023[65] Employment and Market Conditions - The national U.S. unemployment rate increased to 4.1% in September 2024 from 3.7% in December 2023[40] - The technology temporary staffing industry is estimated to decline 7% in 2024, while the finance and accounting temporary staffing industry is estimated to decline 9%[40] Investment and Capital Expenditures - Capitalized software amortization increased by 93.0% for the three months ended September 30, 2024, reflecting significant investment in technology[51] - Cash used in investing activities was $7.9 million for the nine months ended September 30, 2024, compared to $2.5 million in the same period of 2023[64] Tax and Compliance - The effective tax rate for the nine months ended September 30, 2024, was 25.1%, down from 28.9% in the same period in 2023, primarily due to a reduction in nondeductible executive compensation[53] - The company expects to maintain compliance with financial covenants under its credit facility[66] Shareholder Returns - The Firm returned $41.6 million of capital to shareholders in the form of open market repurchases totaling $20.3 million and quarterly dividends totaling $21.3 million during the nine months ended September 30, 2024[38] Working Capital - As of September 30, 2024, the company had $123.4 million in working capital, down from $141.5 million at December 31, 2023[63] - The outstanding balance under the Amended and Restated Credit Facility was $26.9 million as of September 30, 2024, with $172.1 million available for borrowing[66]

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $353.3 million, exceeding the midpoint of expectations, but declined 0.8% sequentially and 6.8% year-over-year on a billing day basis [11][23] - Earnings per share were $0.75, surpassing the high end of guidance [23] - Overall gross margins increased 10 basis points sequentially and 20 basis points year-over-year to 27.9% [23] - Flex margins in the technology business increased 20 basis points sequentially and 60 basis points year-over-year [15][24] Business Line Data and Key Metrics Changes - Flex revenues in the technology business declined 0.6% sequentially and 5.1% year-over-year on a billing day basis [11] - Average bill rates in the technology business remained stable at $90 [13] - Flex margins in the technology business improved due to a more constructive pricing environment and growth in solutions business [24] Market Data and Key Metrics Changes - The financial services vertical showed improvement for the second consecutive quarter, with notable growth in manufacturing and professional services industries [17] - The FA business, representing 8% of revenues, declined 2.2% sequentially and 21.4% year-over-year on a billing day basis [19] Company Strategy and Development Direction - The company is establishing a development center in Pune, India, expected to be operational in January 2025, to enhance service offerings and meet client demands [7][16] - The focus remains on high-end technology resources and solutions engagements, which are expected to drive future growth [9][15] - The company aims to achieve double-digit operating margins at revenues slightly greater than $2 billion in the long term [30] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty due to geopolitical tensions and the upcoming U.S. election, but expressed optimism about a potential soft landing in the U.S. economy [5][6] - Clients are expected to remain cautious with discretionary spending until there is more clarity in the economic outlook [5] - The backlog of critical technology investments is anticipated to be prioritized once macro uncertainties clear [5][6] Other Important Information - The company plans to continue investing in strategic priorities to enhance top-line growth and profitability [6] - A charitable contribution of $500,000 was made to aid recovery efforts from recent hurricanes [3] Q&A Session Summary Question: Inquiry about gross margin improvements - Management indicated that the improvement in flex margins was primarily driven by bill pay spreads, with health insurance costs contributing on a year-over-year basis [32][33] Question: Discussion on revenue trends and client profitability - Management emphasized that client confidence is crucial for unlocking pent-up demand, with expectations for technology budgets to increase in 2025 [35][36] Question: Clarification on the India development center - The India facility is expected to enhance managed services and support U.S.-based clients, with gradual revenue contribution anticipated [38][39] Question: Impact of holiday shutdowns on guidance - Management acknowledged the potential for holiday disruptions but stated that guidance was based on a balanced assessment of current trends [62]

Kforce (KFRC) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 8.70%. A quarter ago, it was expected that this staffing company would post earnings of $0.73 per share when it actually produced earnings of $0.75, delivering a surprise of 2.74%. Over the last four quarters, the company h ...

Revenue Performance - Revenue for Q3 2024 was $353.3 million, a decrease of 0.8% sequentially and 5.3% year over year[2] - Total revenue for Q3 2024 was $353.3 million, a decrease of 5.3% from Q3 2023's $373.1 million[9] - Flex revenue decreased to $345.8 million in Q3 2024, down 5.0% year-over-year from $364.2 million[9] - Technology Flex revenue decreased 0.6% sequentially and 3.6% year over year[2] - Direct hire revenue fell to $7.5 million in Q3 2024, a decline of 16.5% compared to $9.0 million in Q3 2023[9] - Total placements decreased to 342 in Q3 2024, down from 431 in Q3 2023, representing a decline of 20.7%[9] Profitability Metrics - Diluted earnings per share for Q3 2024 were $0.75, an increase of 38.9% year over year[2] - Gross profit margins for Q3 2024 were 27.9%, an increase of 10 basis points sequentially and 20 basis points year over year[2] - Gross profit margin (GP %) improved to 27.9% in Q3 2024 from 27.7% in Q3 2023[9] - Adjusted EBITDA decreased to $23,808,000 from $24,753,000 in the previous quarter and down from $29,039,000 year-over-year[18] - Net income for the three months ended September 30, 2024, was $14,209,000, a slight increase from $14,157,000 in the previous quarter and a significant rise from $10,575,000 year-over-year[18] Expenses and Cash Flow - SG&A expenses as a percentage of revenue for Q3 2024 were 22.2%, increasing 40 basis points sequentially[2] - Free cash flow for the nine months ended September 30, 2024, was $56.6 million, down from $63.0 million in the same period of 2023[14] - Interest expense, net, was $429,000, down from $504,000 in the previous quarter and up from $181,000 year-over-year[18] - Income tax expense for the quarter was $4,078,000, a decrease from $5,039,000 in the previous quarter and $5,277,000 year-over-year[18] Future Guidance - Guidance for Q4 2024 estimates revenue between $337 million and $345 million[3] - Expected earnings per share for Q4 2024 is projected to be between $0.56 and $0.64[3] Shareholder Returns - The company returned $17.1 million to shareholders through open market repurchases and dividends in Q3 2024[2] - The company plans to pay a cash dividend of $0.38 per share on December 20, 2024[2] Community Support - Kforce will donate $500,000 to aid recovery efforts in areas affected by recent hurricanes[1] Taxation - The effective tax rate for Q3 2024 was 33.3%, compared to 27.8% as adjusted[16] Organizational Changes - The company did not incur any organizational realignment activities or legal settlement expenses in the current quarter, contrasting with $3,662,000 and $2,175,000 respectively in the same quarter last year[18]

TAMPA, Fla., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, will release third quarter results post-market on Monday, October 28, 2024, followed by a conference call at 5:00 pm ET to discuss the results. The dial-in number is (800) 715-9871 and the conference passcode is "Kforce". A replay of the call will be available on our website at https://investor.kforce.com for one year after the call. About Kforce Inc. Kforce is a solutions fir ...

TAMPA, Fla., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, today announced that management will participate in the J.P. Morgan Ultimate Services Investor Conference (USIC) in New York on November 14, 2024. The investor presentation can be accessed at http://investor.kforce.com/ under "Events and Presentations". About Kforce Inc. Kforce is a solutions firm specializing in technology, finance and accounting, and professional staffing s ...

Exhibit 99.1 KFORCE REPORTS SECOND QUARTER 2024 REVENUE OF $356.3 MILLION AND EPS OF $0.75 TAMPA, FL, July 29, 2024 — Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the second quarter of 2024. Joseph J. Liberatore, President and Chief Executive Officer, said, "We are pleased with our second quarter performance, including the sequential growth in our Technology business. Operating trends over the first half of 20 ...

TAMPA, Fla., July 11, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, today announced that management will participate in the 9th Annual Wells Fargo FinTech, Information & Business Services Forum at the Newport Harbor Island Resort in Rhode Island on August 21, 2024. The investor presentation can be accessed at http://investor.kforce.com/ under "Events and Presentations". (813) 552-2927 Kforce is a solutions firm specializing in technology, fina ...

TAMPA, Fla., July 02, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, expects to release second quarter results post-market on Monday, July 29, 2024, followed by a conference call at 5:00 pm ET to discuss the results. The dial-in number is (800) 715-9871 and the conference passcode is "Kforce." A replay of the call will be available on our website at https://investor.kforce.com for one year after the call. About Kforce Inc. Kforce is a solutions ...

About Kforce Inc. Kforce is a solutions firm specializing in technology, finance and accounting, and 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 ...