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Kforce(KFRC) - 2024 Q3 - Quarterly Results
KFRCKforce(KFRC)2024-10-28 20:05

Revenue Performance - Revenue for Q3 2024 was 353.3million,adecreaseof0.8353.3 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 373.1million[9]−Flexrevenuedecreasedto373.1 million[9] - Flex revenue decreased to 345.8 million in Q3 2024, down 5.0% year-over-year from 364.2million[9]−TechnologyFlexrevenuedecreased0.6364.2 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 9.0millioninQ32023[9]−Totalplacementsdecreasedto342inQ32024,downfrom431inQ32023,representingadeclineof20.79.0 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 23,808,000from23,808,000 from 24,753,000 in the previous quarter and down from 29,039,000year−over−year[18]−NetincomeforthethreemonthsendedSeptember30,2024,was29,039,000 year-over-year[18] - Net income for the three months ended September 30, 2024, was 14,209,000, a slight increase from 14,157,000inthepreviousquarterandasignificantrisefrom14,157,000 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 56.6million,downfrom56.6 million, down from 63.0 million in the same period of 2023[14] - Interest expense, net, was 429,000,downfrom429,000, down from 504,000 in the previous quarter and up from 181,000year−over−year[18]−Incometaxexpenseforthequarterwas181,000 year-over-year[18] - Income tax expense for the quarter was 4,078,000, a decrease from 5,039,000inthepreviousquarterand5,039,000 in the previous quarter and 5,277,000 year-over-year[18] Future Guidance - Guidance for Q4 2024 estimates revenue between 337millionand337 million and 345 million[3] - Expected earnings per share for Q4 2024 is projected to be between 0.56and0.56 and 0.64[3] Shareholder Returns - The company returned 17.1milliontoshareholdersthroughopenmarketrepurchasesanddividendsinQ32024[2]−Thecompanyplanstopayacashdividendof17.1 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 500,000toaidrecoveryeffortsinareasaffectedbyrecenthurricanes[1]Taxation−TheeffectivetaxrateforQ32024was33.3500,000 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]