Kforce(US:KFRC)2025-02-03 21:05Revenue Performance - Fourth quarter 2024 revenue was $343.8 million, down from $363.4 million in the same quarter of 2023, representing a year-over-year decrease of 5.5%[4] - Full year 2024 revenue totaled $1.41 billion, a decline of 8.2% compared to $1.53 billion in 2023[10] - Technology Flex revenue decreased 3.7% year-over-year, while FA Flex revenue saw a significant drop of 22.1% year-over-year[4] - Total revenue for Q4 2024 decreased to $343,782,000 from $353,319,000 in Q3 2024, and $363,447,000 in Q4 2023, reflecting a year-over-year decline of 5.4%[20] - Flex revenue in Q4 2024 was $337,104,000, down from $345,832,000 in Q3 2024 and $355,611,000 in Q4 2023, indicating a year-over-year decrease of 5.2%[20] - Direct hire revenue for Q4 2024 was $6,678,000, a decline from $7,487,000 in Q3 2024 and $7,836,000 in Q4 2023, representing a year-over-year drop of 15.0%[20] Earnings and Margins - Diluted earnings per share for Q4 2024 were $0.60, a decrease of 26.8% compared to $0.82 in Q4 2023[4] - Operating margins for the full year 2024 were 5.0%, down 70 basis points from the previous year[10] - Gross profit margins for Q4 2024 were 27.0%, a decrease of 30 basis points year-over-year[4] - Adjusted EBITDA for Q4 2024 was $20,565,000, down from $23,808,000 in Q3 2024 and $26,134,000 in Q4 2023, indicating a year-over-year decline of 21.5%[32] - The company reported a net income of $11,061,000 for Q4 2024, compared to $14,209,000 in Q3 2024 and $15,716,000 in Q4 2023, reflecting a year-over-year decrease of 29.5%[32] Shareholder Returns - The company returned $64.7 million to shareholders in 2024 through share repurchases and dividends, representing approximately 75% of operating cash flows[10] - The Board of Directors approved a quarterly dividend increase to $0.39 per share, marking the sixth consecutive annual increase[6] Future Guidance - The company expects first quarter 2025 revenue guidance between $330 million and $338 million, with earnings per share projected between $0.44 and $0.52[11] - The company maintains a strong balance sheet and aims to capture additional market share in 2025[3] Cash Flow and Tax - Free cash flow for the year ended December 31, 2024, was $79,301,000, compared to $83,702,000 in 2023, showing a decrease of 5.4%[27] - The effective tax rate for the year ended December 31, 2023, was 28.4%, with a net income of $61,075,000, compared to an adjusted net income of $68,008,000 after accounting for adjustments[29] Placement and Fees - The average fee for direct hire placements in Q4 2024 was $20,756, down from $21,907 in Q3 2024 and slightly up from $20,727 in Q4 2023[20] - The company experienced a decrease in placements, with 322 in Q4 2024 compared to 342 in Q3 2024 and 378 in Q4 2023, marking a year-over-year decline of 14.8%[20] - Total Flex revenue for Q4 2024 showed a sequential decline of 2.5% compared to Q3 2024, and a year-over-year decline of 8.6%[24]