Kforce(US:KFRC)2024-10-28 20:05Revenue 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]