Kforce reports 4.1% decrease in Q4 revenues
Florida-based Kforce Inc. has announced results for its fourth quarter and full year 2015.
Revenues for the quarter ended 31st December 2015 were $327.7m compared to $341.6m for the quarter ended 30th September 2015, a decrease of 4.1%. However, revenues were up 2.8% year-on-year, compared to the quarter ended 31st December 2014, which totalled $318.7m.
Net income for the quarter ended 31st December 2015 was $11.9m, or $0.43 per share, as compared to $13.5m, or $0.48 per share, for the quarter ended 30th September 2015, and $8.9m, or $0.30 per share, for the quarter ended 31st December 2014.
Kforce reported total revenues for the year ended 31st December 2015 of $1.32 billion as compared to $1.22 billion for 2014, an increase of 8.4%. Net income for the year ended 31st December 2015 was $42.8m, or $1.52 per share, which is an increase of 46%, or 63% per share, compared to income and earnings per share from continuing operations for the year ended 31st December 2014 of $29.4m, or $0.93 per share.
David L. Dunkel, chairman and CEO of Kforce, said, "We are pleased with our record 2015 revenues and our earnings per share from continuing operations. Full year flex revenue for our tech and FA reporting segments increased 6.1% and 18.0%, respectively, when compared to fiscal year 2014. We also made significant progress toward our longer-term profitability goals, as full year operating margins were 5.6% and earnings per share from continuing operations of $1.52 per share improved 63% from 2014.
"As we moved into the second half of the year, we experienced deceleration in year-over-year tech flex growth rates. This deceleration was greater than we had anticipated in the fourth quarter due predominantly to specific large client dynamics, as they work to stabilize their operations after certain significant organizational changes. We experienced early project ends and a slowdown in hiring, and believe the activities at these few clients are very natural given the magnitude of the changes. Recent communications with these customers lead us to believe that there are extensive projects planned but awaiting budget approval. As a result, fourth quarter revenues of $327.7m were below our expectations."
Joseph J. Liberatore, president of Kforce, said, "While we are disappointed that we are experiencing a longer than anticipated pause within a few premier clients, we believe we are well positioned within each of our premier clients and believe these long-standing relationships provide longer-term stability to our overall revenue base. We still see strong demand across many industries in our tech flex business, and in particular in financial services and retail. The ability to access talent continues to be a significant constraint in tech flex as exhibited by the continued high level of conversions. Clients realize that talent is scarce and are increasingly looking to make sure they can keep key resources. We continue to focus on our client, consultant and revenue-generating relationships to drive results, and expect to reaccelerate our momentum in 2016."