Connecting to LinkedIn...


Kforce Reports Fourth Quarter and Full Year 2011 Results

Kforce Reports Fourth Quarter and Full Year 2011 Results

Fourth Quarter Revenues of $285.6 Million and EPS of $0.20

Flex Revenues Per Billing Day Increased 4.2% Sequentially

Total 2011 Revenue and EPS Growth of 12.1% and 37.3%

Kforce Inc. (Nasdaq:KFRC), a provider of professional staffing services and solutions, today announced results for its fourth quarter of 2011. Revenue for the quarter ended December 31, 2011 was $285.6 million compared to $289.0 million for the quarter ended September 30, 2011, a decrease of 1.2% and compared to $258.5 million for the quarter ended December 31, 2010, an increase of 10.5%. For the quarter ended December 31, 2011, Kforce reported net income of $7.1 million, or $0.20 per share, versus $8.4 million, or $0.22 per share, for the quarter ended September 30, 2011, a decrease of 16.1% in net income and 9.1% in earnings per share, respectively. Net income and earnings per share for the fourth quarter of 2011 increased 11.8% and 25.0%, respectively, versus the fourth quarter of 2010, which had net income of $6.3 million, or $0.16 per share.

Kforce reported total revenue for the year ended December 31, 2011 of $1.1 billion as compared to $990.8 million for 2010, an increase of 12.1%. Net income was $27.2 million, or $0.70 per share, for the year ended December 31, 2011, versus net income of $20.6 million, or $0.51 per share, for 2010, which represents an increase of 31.6% in net income and 37.3% in earnings per share.

"We are very pleased with both Q4 and full year 2011 results. Fourth quarter revenues of $285.6 million and earnings per share of $0.20 were both at the top end of our guidance. In the quarter, the Firm also achieved several milestones, establishing record quarterly revenue per billing day for total Firm, total Firm Flex, total Tech, Tech Flex and HIM Flex. Additionally, full year 2011 total Firm Flex revenue increased 12.1%," said David L. Dunkel, Chairman and Chief Executive Officer. "Looking at our service lines, Flex revenues for our Tech, FA, Clinical Research and HIM segments for 2011  experienced increases of 16.1%, 17.2%, 1.8% and 19.7% respectively, while Government Solutions declined 10.4%. We believe that the secular shift towards a flexible staffing model in this temporary employment-led recovery, as evidenced by a disproportionate increase of job creation occurring in temporary staffing, has contributed to our growth in what remains an uncertain macroeconomic environment. In addition, with college educated unemployment at 4.2%, there remains significant demand for professional talent. I wish to thank all of our employees, consultants and clients for making 2011 a very successful year for Kforce and we remain optimistic about the Firm's prospects."

William L. Sanders, President, said, "We are very pleased with the results for the fourth quarter, where we experienced a sequential revenue increase in all Flex business lines on a billing day basis, except for Clinical Research, which is impacted by paid time off around the holidays.  We were able to continue to take advantage of our highly advanced sales and delivery platform that leverages the combination of our field associates, strategic accounts executives and National Recruiting Center to profitably grow revenue with both large and small clients. Our key performance indicators and discussions with clients indicate that demand continues to be solid. Kforce continues to aggressively pursue business opportunities with the goal of continuing to gain client and market share."

Mr. Sanders noted additional operational results for the fourth quarter include:

Flex revenue per billing day of $4.5 million in Q4 '11 increased 4.2% over Q3 '11 and increased 11.2% over Q4 '10.
Flex revenue of $275.2 million in Q4 '11 decreased 0.7% from $277.1 million in Q3 '11 and increased 11.2% from $247.4 million in Q4 '10.
Sequential percentage changes in Flex revenue on a billing day basis by segment were: 12.3% increase for HIM, 11.2% increase for FA, 2.5% increase for Tech, 2.4% increase for Government Solutions and a 1.6% decrease for Clinical Research.
Search revenue of $10.4 million in Q4 '11 decreased 12.4% from $11.9 million in Q3 '11 and decreased 6.0% from $11.1 million in Q4 '10.

Joseph J. Liberatore, Chief Financial Officer, said, "The Firm performed well in Q4 '11. We believe our fourth quarter results reflect strong client relationships and an improving pricing environment. Q4 '11 and Q4 '10 each contained 61 billing days while Q3 '11 contained 64 billing days."

Mr. Liberatore continued, "From a financial standpoint, 2011 provided the opportunity for the Firm to take advantage of our flexibility and capacity to gain market share while protecting our strong balance sheet and delivering solid results. Cash flow and EBITDA continued to be strong in 2011. During 2011, the Firm repurchased approximately 5.7 million shares of Kforce common stock which represented 13.8% of outstanding shares at December 31, 2010. We will continue to be opportunistic in future repurchases as cash flow and market conditions warrant. We believe we are well positioned to take advantage of available opportunities in 2012 and return strong results to our shareholders."

Financial highlights for the fourth quarter and 2011 include:

Flex gross profit decreased 30 basis points to 28.6% in Q4 '11 from 28.9% in Q3 '11 and decreased 20 basis points from 28.8% in Q4 '10.
Selling, general and administrative expenses as a percentage of revenue for fiscal 2011 was 26.0% compared to 26.8% for fiscal 2010, reflecting a decrease of 80 basis points.
Adjusted EBITDA for fiscal 2011 was $69.3 million, an increase of 30.2% from $53.2 million in fiscal 2010.
Earnings per share for fiscal 2011 was $0.70, an increase of 37.3% from $0.51 per share in fiscal 2010.
Bank debt at the end of Q4 '11 was $49.5 million, reflecting a decrease of $9.9 million from $59.4 million at the end of Q3 '11.

Mr. Liberatore stated, "In addition, looking forward to the first quarter of 2012, we expect revenues may be in the $293 million to $300 million range and earnings per share in the range of $0.14 to $0.16, which reflects an impact of approximately $0.07 per share of payroll taxes. The first quarter of 2012 has 64 billing days versus 61 billing days in the fourth quarter of 2011."

On Tuesday, February 7, 2012, Kforce will host a conference call to discuss these results. The call will begin at 5:00 p.m. Eastern Time. The dial-in number is 877-344-3890. The replay of the call will be available from 8:00 p.m. Eastern Time Tuesday, February 7 to February 21, 2012 by dialing (800) 642-1687, passcode 51845786.

This call is being webcast by Shareholder.comand can be accessed at Kforce's web site at "Investor Relations"). The webcast replay will be available until February 21, 2012.


Articles similar to

Articles similar to