Daily News
View All NewsKforce revenue rises 13%, posts Q4 net income
Kforce Inc. (NASD: KFRC) reported fourth-quarter revenue rose 13.0%. The Tampa, Fla.-based professional staffing provider reported net income of $8.9 million compared to a net loss of $8.2 million in the year-ago quarter. The fourth quarter of 2013 had included a $14.5 million charge related to goodwill impairment.
Kforce ranks No. 15 on Staffing Industry Analysts’ 2014 list of largest U.S. staffing firms.
(US$ thousands) | Q4 2014 | Q4 2013 | % growth |
Revenue | $318,739 | $282,061 | 13.0% |
Gross profit | $98,378 | $89,371 | 10.1% |
Gross margin percentage | 30.9% | 31.7% | |
Net income/loss | $8,945 | -$8,234 | nm |
Quote
“The industry is very healthy, with specialty firms leading the way,” Kforce Chairman and CEO David Dunkel said in a conference call with analysts. “The tech space continued its strong growth trends in 2014 and is projected to grow at high levels for the next several years. The FA market also was robust which contributed to our strong growth performance. The secular shift continues as the need for flexibility and specialized skills, the project nature of work and the regulatory environment drive customers to greater use of flexible resources.”
Revenue by function and segment
(US$ thousands) | Q4 2014 | Q4 2013 | % growth |
Total flex revenue | $306,824 | $270,485 | 13.4% |
Total search revenue | $11,915 | $11,576 | 2.9% |
Technology | |||
Technology flex revenue | $212,414 | $193,238 | 9.9% |
Technology search revenue | $4,740 | $4,338 | 9.3% |
Total technology revenue | $217,154 | $197,576 | 9.9% |
Finance & Accounting | |||
Finance & Accounting flex revenue | $67,863 | $55,552 | 22.2% |
Finance & Accounting search revenue | $7,175 | $7,238 | -0.9% |
Total Finance & Accounting revenue | $75,038 | $62,790 | 19.5% |
Government Solutions | $26,547 | $21,695 | 22.4% |
Gross margin by segment
Q4 2014 | Q4 2013 | |
Technology flex | 27.4% | 27.9% |
Finance & Accounting flex | 29.6% | 30.3% |
Government solutions flex | 31.0% | 32.9% |
Full-year results
(US$ thousands) | 2014 | 2013 | % growth |
Revenue | $1,217,331 | $1,073,728 | 13.4% |
Gross profit | $374,581 | $344,376 | 8.8% |
Gross margin percentage | 30.8% | 32.1% | |
Net income/loss | $90,915 | $10,787 | nm |
Guidance
Kforce expects first-quarter revenue from continuing operations in the $312 million to $317 million range.
Share price and market cap
Shares in Kforce fell 3.11% to $23.68 in early afternoon trading; Kforce has a market cap of approximately $717.20 million, according to Yahoo!