Kforce(US:KFRC)2025-02-21 21:06Financial Performance - Revenue for 2024 was $1,405,308, a decrease of 8.2% from $1,531,756 in 2023[196] - Gross profit for 2024 was $385,445, down 9.7% from $427,066 in 2023[196] - Net income for 2024 was $50,414, representing a decline of 17.4% compared to $61,075 in 2023[196] - Earnings per share (diluted) for 2024 was $2.68, down from $3.13 in 2023, a decrease of 14.4%[196] - Future revenue growth is expected to be influenced by changes in client demand and economic conditions[19] - Net income for 2024 was $50,414 thousand, a decrease of 17.5% from $61,075 thousand in 2023 and a decrease of 33.2% from $75,431 thousand in 2022[204] - Cash provided by operating activities in 2024 was $86,874 thousand, slightly down from $91,465 thousand in 2023[204] - Total stockholders' equity as of December 31, 2024, was $154,618 thousand, a decrease from $159,080 thousand in 2023[201] Assets and Liabilities - Total current assets decreased to $225,406 in 2024 from $244,459 in 2023, a decline of 7.8%[199] - Long-term debt under the credit facility was $32.7 million as of December 31, 2024, down from $41.6 million in 2023[199] - Total fixed assets, net decreased to $7,723 thousand in 2024 from $9,418 thousand in 2023, primarily due to increased depreciation[263] - Total accounts payable and other accrued liabilities decreased from $64.8 million in 2023 to $61.8 million in 2024, a reduction of approximately 4.6%[271] - Deferred compensation payable increased from $5.9 million in 2023 to $8.6 million in 2024, representing a growth of approximately 45.8%[277] - Total other long-term liabilities increased from $54.3 million in 2023 to $58.1 million in 2024, an increase of approximately 7.9%[284] Investments and Expenditures - The firm expects to continue strategic investments in technology and operational efficiency to improve margins[15] - Capital expenditures in 2024 were $7,573 thousand, compared to $7,763 thousand in 2023[204] - Capitalized software increased to $29,090 thousand in 2024, reflecting investments in technology capabilities[264] Stock and Compensation - Dividends paid in 2024 were $28,236 thousand, an increase from $27,562 thousand in 2023 and $24,027 thousand in 2022[204] - The company repurchased common stock worth $41,938 thousand in 2024, down from $75,024 thousand in 2023[204] - The company recognized stock-based compensation expense of $14,044 thousand in 2024, down from $17,747 thousand in 2023[204] - Stock-based compensation expense for 2024 was $14.0 million, down from $17.7 million in 2023, reflecting a decrease of approximately 20.9%[287] - The total intrinsic value of restricted stock vested in 2024 was $15.1 million, down from $22.5 million in 2023, a decrease of approximately 33.3%[291] Tax and Compliance - The effective tax rate for 2024 was 25.4%, down from 28.4% in 2023, influenced by a reduction in non-deductible expenses[265] - The company is adopting new guidance for income tax disclosures effective January 1, 2025, which is not expected to have a material effect on consolidated financial statements[256] Operational Insights - The company maintained effective internal control over financial reporting as of December 31, 2024[189] - The company anticipates challenges in attracting talent due to a constrained supply of consultants in a high-demand environment[19] - The allowance for credit losses decreased to $916 thousand in 2024 from $1,106 thousand in 2023, indicating improved credit quality[262] - Trade receivables, net increased by $17,638 thousand in 2024, compared to an increase of $35,301 thousand in 2023[204] - The company had a deferred income tax provision of $(1,871) thousand in 2024, compared to $1,647 thousand in 2023[204] - As of December 31, 2024 and 2023, the company reported no material contract liabilities[221] - Trade accounts receivable reserves were less than 1% of gross trade receivables at both December 31, 2024 and 2023[231] Legal and Risk Management - Kforce is involved in legal proceedings that are not expected to have a material adverse effect on its consolidated financial statements[295] - The company maintains liability insurance covering various risks, but there is no assurance that it will cover all events or that coverage limits will be sufficient[295]