Kforce Q2 2016 up from last quarter & down YoY
Kforce today announced financial results for its second quarter of 2016.
Revenues for the quarter ended 30th June 2016 were $335m compared to $322.2m for the quarter ended March 31, 2016, an increase of 4.0%, and compared to $337.4 million for the quarter ended June 30, 2015, a decrease of 0.7%.
Net income for the quarter ended 30th June 2016 was $10.9m, or $0.41 per share, as compared to $3.7m, or $0.14 per share, for the quarter ended 31st March 2016, and compared to $11.6m, or $0.41 per share, for the quarter ended 30th June 2015. Adjusted net income, a non-GAAP measure, for the quarter ended 31st March 2016 was $6.4m, or $0.24 per share.
David L. Dunkel, chairman and chief executive, said, "Revenues in the second quarter improved to $335.0 million and were in line with our guidance. The improvement from Q1 was primarily due to 3.9% sequential growth in our Tech Flex business where we saw the reversal of prior period revenue declines in certain large clients to contribute positively to our sequential growth. Earnings per share of $0.41 was slightly higher than the midpoint of our expectations. The overall demand environment in both Tech and Finance and Accounting remains solid. Against an uncertain macro-economic backdrop, we continue to experience many secular drivers, particularly in our Tech Flex business.
"We continue to believe that the T4 Next Gen contract vehicle could provide KGS with an opportunity to experience significant growth beginning in Q4 of 2016 with momentum going into 2017. We expect that the longer-term growth enabled by this contract vehicle will yield higher gross profit and operating margins than we are currently experiencing and provide a stable and more predictable revenue stream over the 10-year life of the contract vehicle.
“We continue to make progress on several significant initiatives for supporting future growth. These include optimizing the alignment of our sales and delivery talent between Tech and FA, allocating our investments in talent toward markets, products, industries and clients that present us with the greatest opportunity for profitable revenue growth, and diversifying our client portfolio. We are also upgrading existing technology systems and implementing new technologies that will allow us to more effectively and efficiently serve our clients and candidates and improve the productivity and scalability of our organization."
Joseph J. Liberatore, president, commented, "Over the past three quarters, we have made significant strides in diversifying our business to mitigate risk and take advantage of the strength of our client portfolio. We believe these efforts are showing promising signs as clients outside our top 25 grew sequentially at twice the pace of our top 25 clients and should continue to provide additional opportunities to grow our business. We also remain dedicated to providing exceptional service to our largest customers with whom we have long-term relationships. We believe we are pursuing the mix of business that will lead to the greatest long-term success."