Daily News
View All NewsKforce Q4 revenue rises 3%, misses guidance
Professional staffing firm Kforce Inc. (NASD: KFRC) reported fourth-quarter revenue rose 2.8%. The company’s revenue was lower than guidance given at the end of the third quarter. Gross margin also fell short of guidance.
The Tampa, Fla.-based professional staffing provider cited great-than-expected deceleration in technology flexible staffing growth rates, primarily due to a pause within a few large clients.
| (US$ thousands) | Q4 2015 | Q4 2014 | % growth |
| Revenue | $327,699 | $318,739 | 2.8% |
| Gross profit | $103,515 | $98,378 | 5.2% |
| Gross margin percentage | 31.6% | 30.9% | |
| Net income | $11,901 | $8,945 | 33.0% |
Quote
“While we are disappointed that we are experiencing a longer than anticipated pause within a few premier clients, we believe we are well positioned within each of our premier clients and believe these longstanding relationships provide longer-term stability to our overall revenue base,” President Joseph Liberatore said. “We still see strong demand across many industries in our tech flex business, and in particular in financial services and retail. The ability to access talent continues to be a significant constraint in tech flex as exhibited by the continued high level of conversions. Clients realize that talent is scarce and are increasingly looking to make sure they can keep key resources. We continue to focus on our client, consultant and revenue-generating relationships to drive results, and expect to reaccelerate our momentum in 2016.”
Revenue by function and segment
| (US$ thousands) | Q4 2015 | Q4 2014 | % growth |
| Total flex revenue | $314,286 | $306,824 | 2.4% |
| Total direct-hire revenue | $13,413 | $11,915 | 12.6% |
| Technology | |||
| Technology flex revenue | $212,917 | $212,414 | 0.2% |
| Technology direct-hire revenue | $5,109 | $4,740 | 7.8% |
| Total technology revenue | $218,026 | $217,154 | 0.4% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $78,512 | $67,863 | 15.7% |
| Finance & Accounting direct-hire revenue | $8,304 | $7,175 | 15.7% |
| Total Finance & Accounting revenue | $86,816 | $75,038 | 15.7% |
| Government Solutions | $22,857 | $26,547 | -13.9% |
Gross margin by segment
| Q4 2015 | Q4 2014 | |
| Technology flex | 27.5% | 27.4% |
| Finance & Accounting flex | 29.9% | 29.6% |
| Government solutions flex | 34.9% | 31.0% |
Full-year results
| (US$ thousands) | 2015 | 2014 | % growth |
| Revenue | $1,319,238 | $1,217,331 | 8.4% |
| Gross profit | $414,114 | $374,581 | 10.6% |
| Gross margin percentage | 31.4% | 30.8% | |
| Net income | $42,824 | $90,915 | nm |
Guidance
Kforce expects first-quarter revenue of $323 million to $328 million.
Share price and market cap
Shares in Kforce fell 20.23% to $15.34 in early afternoon trading today; Kforce has a market cap of approximately $443.65 million, according to Yahoo.