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Kforce Reports Second Quarter Revenue of $274.0 Million

Kforce Reports Second Quarter Revenue of $274.0 Million

Kforce Inc. a provider of professional staffing services and solutions, today announced results for its second quarter of 2011. Revenue for the quarter ended June 30, 2011 was $274.0 million compared to $262.4 million for the quarter ended March 31, 2011, an increase of 4.4% and compared to $246.1 million for the quarter ended June 30, 2010, an increase of 11.3%. For the quarter ended June 30, 2011, Kforce reported net income of $6.8 million, or $0.17 per share, versus $4.8 million, or $0.12 per share, for the quarter ended March 31, 2011, an increase of 40.2% in net income and 41.7% in EPS. Net income and EPS for the second quarter of 2011 increased 31.9% and 30.8%, respectively, versus the second quarter of 2010, which had net income of $5.1 million, or $0.13 per share.

"We are pleased with the performance of our Technology (Tech) and Health Information Management (HIM) businesses and the continued strength in Search, which are up 15.2%, 21.2% and 23.5%, respectively, on a year-over-year basis. However, we are not satisfied with the performance of our government and Kforce Clinical Research businesses or the mortgage related component of Finance & Accounting (FA), which continue to be impacted by their particular operating environment challenges. We believe we have made significant progress adjusting our operating models in these businesses and have confidence in our great teams. Overall, we are pleased with our quarterly revenues of $274.0 million, which represents a Firm record, and earnings of $0.17 per share. This represents year-over-year growth of 11.3% and 30.8%, respectively. We continue to leverage our National Recruiting Center (NRC) and Strategic Accounts teams to capture revenue opportunities and provide operating expense leverage. We plan to continue optimizing the investments we have made and to be selective regarding additional investments during this uncertain economic environment.

We believe Kforce is well positioned to service our clients' increasing desire for a more flexible workforce during this unique temporary employment-led recovery. We remain committed to our goal to surpass prior peak earnings in the cycle with a higher quality revenue stream that is less dependent upon permanent placement revenue," said David L. Dunkel, Chairman and CEO.

William L. Sanders, President, said, "Our key performance indicators and discussions with clients indicate that demand continues to be solid, particularly in Tech, HIM and FA. Against this backdrop, Kforce is committed to our operational objectives for 2011 and beyond to further penetrate and accelerate growth at existing strategic accounts, compete for additional customer share and selectively target new accounts where our service offerings and business model add value to our clients. We also expect to continue to improve profitability through the leverage that exists in our highly advanced operating platform and by further evolving the NRC, which allows us to profitably serve certain clients and niches that would not be possible under a traditional staffing model. We remain focused on adapting to the changing needs of all of our businesses to optimize performance and position the Firm for long-term success."

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