TAMPA, Fla., April 29, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NASDAQ:KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the first quarter of 2024. Joseph J. Liberatore, President and Chief Executive Officer, said, "Our first quarter performance was generally consistent with our expectations, and we were encouraged by March trends in our Technology business. Operating trends over the past two quarters and discussions with our clients indicate to us that the current operating environment is more stable and constructive than it was throughout most of 2023. As we look beyond the current uncertainties, we continue to be encouraged by the backlog of strategically imperative investments that we expect to be high priorities for our clients once the macro uncertainties begin to clear." Mr. Liberatore continued, "While all economic cycles behave a bit differently, what remains clear to me is that the broad and strategic uses of technology, including the most recent technology secular shift associated with AI, will continue to evolve and play an increasingly instrumental role in powering businesses. Over the long term we believe that AI and other technologies will continue to drive demand for, rather than replace, technology resources, and that the pace of change will only accelerate. Our decision to grow our business organically with a consistent, refined business model tailored to provide highly skilled technology talent solutions to world-class companies has been critical to our success over many years, and we remain confident that we are positioned well for improving market conditions. I am tremendously proud of our team as they continue to execute with incredible passion to serve our clients, candidates and consultants cohesively as one Kforce. I remain confident and excited about the future of Kforce." Quarterly Financial Highlights Revenue for the quarter ended March 31, 2024 was $351.9 million compared to $406.0 million for the quarter ended March 31, 2023, a decrease of 3.2% sequentially (7.7% on a sequential billing day basis) and 13.3% year-over-year. Technology Flex revenue decreased 2.3% sequentially (6.9% on a sequential billing day basis) and 11.4% year-over-year. FA Flex revenue decreased 11.5% sequentially (15.7% on a sequential billing day basis) and 27.2% year-over-year. Gross profit margins of 27.1% decreased 20 basis points sequentially and 100 basis points year-over-year. Flex gross profit margins of 25.6% decreased 10 basis points sequentially and 60 basis points year-over-year. SG&A expenses as a percentage of revenue was 22.2% for the quarter ended March 31, 2024, which increased 120 basis points sequentially and 20 basis points year-over-year. Operating margins were 4.5% for the quarter ended March 31, 2024, which decreased 150 basis points sequentially and 130 basis points year-over-year. Diluted earnings per share for the quarter ended March 31, 2024 were $0.58, a decrease of 29.3% year-over-year. We returned $9.1 million in capital to our shareholders in the form of open market repurchases and quarterly dividends for the three months ended March 31, 2024. Our Board of Directors approved a second quarter cash dividend of $0.38 per share to shareholders of record as of the close of business on June 14, 2024, which will be payable on June 28, 2024. Second Quarter 2024 - Guidance Looking forward to the second quarter of 2024, there will be 64 billing days, which is the same as the first quarter of 2024 and the second quarter of 2023. Current estimates for the second quarter of 2024 are: Revenue of $352 million to $360 million Earnings per share of $0.68 to $0.76 Gross profit margin of 27.4% to 27.6% Flex gross profit margin of 25.8% to 26.0% SG&A expenses as a percent of revenue of 21.6% to 21.8% Operating margin of 5.2% to 5.6% WASO of 18.9 million Effective tax rate of 26.2% Conference Call On Monday, April 29, 2024, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (888) 550-5417 and the conference passcode is "Kforce." The prepared remarks for this call and webcast are available on the Investor Relations page of the Kforce Inc. website in the News and Events section. The replay of the call can be accessed at http://investor.kforce.com. About Kforce Inc. Kforce Inc. (the "Firm") is a solutions firm specializing in technology and other professional staffing services. Each year, we provide career opportunities for approximately 20,000 highly skilled professionals on a temporary, consulting or direct-hire basis. These professionals work with approximately 2,500 clients, including a significant majority of the Fortune 500, helping them conquer challenges and meet their digital transformation goals. Together, we reimagine how business gets done. For more than 60 years, we have achieved our clients' objectives by combining a KNOWLEDGEforce®—our namesake—with flexibility and an unmatched drive for excellence. Michael R. Blackman, Chief Corporate Development Officer(813) 552-2927 Cautionary Note Regarding Forward-Looking Statements All statements in this press release, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding the backlog of desired investments that are expected to be high priorities once the macro uncertainties begin to clear, the evolution and increasingly instrumental role of technology in driving businesses, demand drivers of technology spend, the acceleration of technological change, the Firm's confidence in being well positioned for improving market conditions, and the Firm's guidance for the second quarter of 2024. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions; growth rate in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand; changes in client demand or our ability to adapt to such changes; a constraint in the supply of consultants and candidates or the Firm's ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments or contracts, or funding under contracts; ability to comply with our obligations in a remote work environment; continued performance and security of, and improvements to, our enterprise information systems; impacts of actual or potential litigation or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm's reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm's Form 10-K for the fiscal year ended December 31, 2023, as well as assumptions regarding the foregoing. The terms "should," "believe," "estimate," "expect," "intend," "anticipate," "plan" and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.   Kforce Inc. Summary of Operations (In Thousands, Except Per Share Amounts) (Unaudited)     Three Months Ended   March 31, 2024   December 31, 2023   March 31, 2023 Revenue $         351,889     $         363,447     $         405,997   Direct costs           256,639               264,084               292,021   Gross profit           95,250               99,363               113,976   Selling, general and administrative expenses           78,190               76,375               89,339   Depreciation and amortization           1,333               1,236               1,234   Income from operations           15,727               21,752               23,403   Other expense, net           656               332               1,045   Income from operations, before income taxes           15,071               21,420               22,358   Income tax expense           4,084               5,704               6,148   Net income $         10,987     $         15,716     $         16,210               Earnings per share – diluted $         0.58     $         0.82     $         0.82               Weighted average shares outstanding – diluted           18,932               19,194               19,667   Adjusted EBITDA $         20,560     $         26,134     $         28,729               Billing days           64               61               64     Kforce Inc. Consolidated Balance Sheets (In Thousands) (Unaudited)     March 31, 2024   December 31, 2023 ASSETS       Current assets:       Cash and cash equivalents $         106     $         119   Trade receivables, net of allowances           236,923               233,428   Prepaid expenses and other current assets           9,146               10,912   Total current assets           246,175               244,459   Fixed assets, net           8,936               9,418   Other assets, net           82,800               75,924   Deferred tax assets, net           3,382               3,138   Goodwill           25,040               25,040   Total assets $