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Kforce Reports Fourth Quarter Revenue of $224.6 Million and EPS of $0.09

TAMPA, Fla., Feb 9, 2010 (GlobeNewswire via COMTEX News Network) -- Kforce Inc. (Nasdaq:KFRC), a provider of professional staffing services and solutions, today announced results for its fourth quarter of 2009. Revenue for the quarter ended December 31, 2009 was $224.6 million compared to $228.3 million for the quarter ended September 30, 2009, a decrease of 1.6%, and compared to $241.0 million for the quarter ended December 31, 2008, a decrease of 6.8%. For the quarter ended December 31, 2009, Kforce reported net income of $3.5 million, or $0.09 per share, versus $4.4 million, or $0.11 per share, for the quarter ended September 30, 2009, which excludes the non-cash compensation charge and represents a sequential decrease of 19.8% in net income and 18.2% in earnings per share. In the fourth quarter in 2008, excluding the non-cash goodwill and other intangible assets impairment charge, Kforce reported net income of $7.4 million, or $0.19 per share which represents a year-over-year decline of 52.0% in net income and 52.6% in earnings per share. On a GAAP basis, net income for the quarter ended September 30, 2009 was $2.3 million, or $0.06 per share, and the net loss for the quarter ended December 31, 2008 was $107.9 million, or $2.81 per share.

As previously reported, Kforce incurred a non-cash compensation charge before taxes of $3.6 million, or $0.05 per share, related to the acceleration of certain equity awards during the quarter ended September 30, 2009. Additionally, Kforce incurred a non-cash goodwill and other intangible assets impairment charge before taxes of $129.4 million, or $3.00 per share, during the quarter ended December 31, 2008.

Kforce reported total revenue for the year ended December 31, 2009 of $910.1 million as compared to $997.0 million for 2008, a decrease of 8.7%. Net income was $12.9 million, or $0.33 per share, for the year ended December 31, 2009, versus net income of $31.1 million, or $0.78 per share, for 2008, which excludes the non-cash goodwill and other intangible assets impairment charge and represents a year-over-year decline of 58.6% in net income and 57.7% in earnings per share.

"We are pleased with our fourth quarter results, which include a 3.2% sequential increase in total Firm revenues on a billing day basis and are particularly pleased with the 6.8% sequential increase in Tech Flex revenue on a billing day basis. Additionally, permanent placement was up 13.0% sequentially which, we believe, reflects clients rebuilding core staff after significant reductions earlier in the year. We believe our diverse portfolio of service offerings and unique delivery platform have helped mitigate the impact of the recent economic recession allowing us to report strong relative results in 2009," said David L. Dunkel, Chairman and CEO.

Mr. Dunkel continued, "Kforce is aggressively pursuing business opportunities with the goal of continuing to gain customer and market share. We believe that Kforce has developed a highly leverageable and flexible platform that will continue to deliver solid results across our service spectrum. Our priorities continue to be retaining the highly talented people that are the lifeblood of our future success, and to use cash flow for acquisitions that meet our very high thresholds, share repurchases, and debt retirement although net bank debt today is practically zero. In addition, we are pleased that we have fully integrated our acquisitions. In particular, I would like to thank our great people for their continued hard work and commitment to delivering great results. We are proud of our team's relative out-performance throughout 2009 and are excited about the current and future opportunities that we believe exist."

William L. Sanders, President, said, "Based upon our experience in past recessions, we have carefully managed the risks to our revenue stream, particularly our exposure to the highly volatile permanent placement business, which has represented approximately 3% of our revenue stream during 2009. As demonstrated by our relative out-performance over the past year, we continue to execute and take market share by utilizing competitive advantages such as our state of the art technology infrastructure and National Recruiting Center, which is particularly effective in delivering to our key strategic accounts. These competitive differentiators are the result of purposeful strategic decisions that have been made by our seasoned executive team in preparation for the economic up-cycle."

Mr. Sanders noted additional operational results of the fourth quarter include:

  --  Flex revenue of $217.2 million in Q4 '09 decreased 2.0% from $221.7
      million in Q3 '09 and decreased 4.8% from $228.2 million in Q4 '08.

  --  Flex revenue per billing day of $3.6 million in Q4 '09 increased 2.8%
      over Q3 '09 and decreased 3.2% over Q4 '08.

  --  Tech Flex revenue, which comprised 52.0% of total Firm revenue for the
      fourth quarter of 2009, increased 6.8% sequentially on a billing day
      basis. Sequential percentage changes in Flex revenue on a billing day
      basis for our other segments were a 2.9% decrease for HLS, 1.2% decrease
      for F&A and flat for Government Solutions.

  --  Search revenue of $7.4 million in Q4 '09 increased 13.0% from $6.6
      million in Q3 '09 and decreased 42.1% from $12.8 million in Q4 '08.


Joe Liberatore, Chief Financial Officer, said, "The Firm continued to perform well in Q4 '09, coming in above consensus estimates for both revenue and earnings per share. Q4 '09 contained 61 billing days compared to 64 billing days in Q3 '09, and 62 billing days in Q4 '08. We believe our fourth quarter results reflect our strong culture and a continued focus on execution in all aspects of the business, including improving client relationships, balancing bill/pay rate spreads, solid expense management and optimizing cash flow."

Financial highlights for 2009 include:

  --  Flex gross profit decreased 100 basis points to 28.7% in Q4 '09 from
      29.7% in Q3 '09 and declined 110 basis points from 29.8% in Q4 '08.

  --  Tech Flex gross profit decreased 40 basis points to 27.0% from 27.4% in
      Q3 '09 and Q4 '08.

  --  Selling, general and administrative ("SG&A") expenses as a percentage of
      revenue for 2009 was 27.6% compared to 28.7% for 2008, which excludes
      the impairment charge recorded during the fourth quarter of 2008, and
      reflects a decrease of 110 basis points as a percentage of revenue.

  --  EBITDA for 2009 was $42.1 million, a decrease of 39.8% from $70.0
      million in 2008.

  --  Earnings per share for 2009 was $0.33, a decrease of 57.7% from $0.78
      per share, which excludes the impairment charge recorded during 2008.

  --  Bank debt at the end of 2009 was $3.0 million, reflecting a decrease of
      $35.0 million from $38.0 million at the end of 2008 and a decrease of
      $9.8 million from September 30, 2009.


Mr. Liberatore continued, "Looking forward to the first quarter of 2010, we expect revenue may be in the $224.0 million to $232.0 million range, and earnings per share in the range of $0.04 to $0.07 which reflects an impact of approximately $0.05 per share of payroll taxes. This guidance does not take into account any weather-related impact throughout the quarter. The first quarter of 2010 has 62 versus 61 billing days in the fourth quarter of 2009."

On Tuesday, February 9, 2010, Kforce will host a conference call to discuss these results. The call will begin at 5:00 p.m. Eastern Time. The dial-in number is 800-811-0667. The replay of the call will be available from 7:00 p.m. Eastern Time Tuesday, February 9 to February 23, 2010 by dialing 888-203-1112, passcode 4421417.

This call is being webcast by Shareholder.com and can be accessed at Kforce's web site at www.kforce.com (select "Investor Relations"). The webcast replay will be available until February 23, 2010.

About Kforce

Kforce (Nasdaq:KFRC) is a professional staffing and solutions firm providing flexible and permanent staffing solutions in the skill areas of technology, finance & accounting, and health and life sciences. Backed by approximately 1,900 associates and approximately 8,700 consultants on assignment, Kforce is committed to "Great People = Great Results" for our valued clients and candidates. Kforce operates with 63 offices located throughout the United States and two offices in the Philippines. For more information, please visit our Web site at http://www.kforce.com/.

The Kforce Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3749

About Kforce Government Solutions (KGS)

KGS provides innovative technology, financial management, data architecture and continuous process improvement and finance and accounting solutions primarily to federal government clients. KGS, with more than 700 professionals currently on assignment, has been partnering with our clients since 1970 to successfully solve their challenges. KGS' in-depth operational knowledge and understanding of Federal Agencies, the Defense Department, Homeland Security and industry best practices, combined with expert and highly-skilled professionals, have resulted in a comprehensive portfolio of technologically advanced and innovative consulting solutions designed to guide clients through today's environment of complex challenges, risk, and cost. For more information, visit http://www.kforcegov.com/.

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. 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 Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the staffing industry and general economy; competitive factors, risks due to shifts in the market demand, including, without limitation, shifts in demand for our Technology, Finance and Accounting, Health and Life Sciences and Government Solutions segments, as well as the market for search and flexible staffing assignments; changes in the service mix; ability of the Firm to complete acquisitions; and the risk factors listed from time to time in the Firm's reports filed with the Securities and Exchange Commission, as well as assumptions regarding the foregoing. In particular, there can be no assurance that we will continue to increase our market share, successfully manage risks to our revenue stream and successfully put into place the people and processes that will create future success. The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Firm undertakes no obligation to publicly update or revise any forward-looking statements. As a result, such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

                         Kforce Inc.
                    Summary of Operations
           (In Thousands, Except Per Share Amounts)
                         (Unaudited)


                                   Three Months Ended
                             ------------------------------


                                        Sept.
                             Dec. 31,     30,     Dec. 31,
                               2009      2009       2008
                             --------  --------  ----------

  Revenue by function:
   Technology                $119,478  $117,330    $128,781
   Finance & Accounting        39,896    41,290      46,428
   Health & Life Sciences      37,481    40,490      45,048

   Government Solutions        27,747    29,163      20,697
                             --------  --------  ----------
  Total revenue               224,602   228,273     240,954

  Revenue by time:
   Flexible                   217,199   221,722     228,179

   Perm                         7,403     6,551      12,775
                             --------  --------  ----------
  Total revenue               224,602   228,273     240,954


  Costs of services           154,781   155,957     160,249
                             --------  --------  ----------
  Gross profit                 69,821    72,316      80,705
   GP %                         31.1%     31.7%       33.5%
   Flex GP %                    28.7%     29.7%       29.8%

  Selling, general &
   administrative expenses:
   Selling, general &
    administrative,
    excluding impairment       60,645    65,129      65,785
   Goodwill & intangible
    assets impairment              --        --     129,409
                             --------  --------  ----------
  Total selling, general &
   administrative expenses     60,645    65,129     195,194
  Depreciation &
   amortization                 2,919     2,829       3,174
                             --------  --------  ----------

  Income (loss) from
   operations                   6,257     4,358   (117,663)


  Other expense, net              249       272         371
                             --------  --------  ----------

  Income (loss) from
   continuing operations,
   before income taxes          6,008     4,086   (118,034)

  Income tax expense
   (benefit)                    2,475     1,814    (10,196)
                             --------  --------  ----------

  Income (loss) from
   continuing operations        3,533     2,272   (107,838)

  Loss from discontinued
   operations, net of
   income taxes                    --        --        (40)
                             --------  --------  ----------


  Net income (loss)            $3,533    $2,272  $(107,878)
                             ========  ========  ==========

  Earnings (loss) per share
   - diluted                    $0.09     $0.06     $(2.81)
  EBITDA per share              $0.24     $0.29       $0.40
  Shares outstanding -
   diluted                     39,803    39,403      38,408

  EBITDA                       $9,628   $11,539     $15,634

  Selected cash flow
   information:
   Bad debt (recovery)
    expense                     $(41)      $143      $(183)
   Capital expenditures        $1,304    $1,557      $1,471

  Other information:
   Equity-based
    compensation expense,
    net                          $606    $3,126        $462

  Billing days                     61        64          62

                   Kforce Inc.
               Summary of Operations
     (In Thousands, Except Per Share Amounts)
                   (Unaudited)


                             Twelve Months Ended
                             -------------------


                             Dec. 31,   Dec. 31,
                               2009       2008
                             --------  ---------

  Revenue by function:
   Technology                $467,824   $519,867
   Finance & Accounting       162,856    211,259
   Health & Life Sciences     164,933    189,666

   Government Solutions       114,523     76,225
                             --------  ---------
  Total revenue               910,136    997,017

  Revenue by time:
   Flexible                   881,734    931,032

   Perm                        28,402     65,985
                             --------  ---------
  Total revenue               910,136    997,017


  Costs of services           624,157    652,366
                             --------  ---------
  Gross profit                285,979    344,651
   GP %                         31.4%      34.6%
   Flex GP %                    29.2%      29.9%

  Selling, general &
   administrative expenses:
   Selling, general &
    administrative,
    excluding impairment      251,268    286,475
   Goodwill & intangible
    assets impairment              --    129,409
                             --------  ---------
  Total selling, general &
   administrative expenses    251,268    415,884
  Depreciation &
   amortization                11,673     13,824
                             --------  ---------

  Income (loss) from
   operations                  23,038   (85,057)


  Other expense, net            1,145      2,136
                             --------  ---------

  Income (loss) from
   continuing operations,
   before income taxes         21,893   (87,193)


  Income tax expense            9,020      1,928
                             --------  ---------

  Income (loss) from
   continuing operations       12,873   (89,121)

  Income from discontinued
   operations, net of
   income taxes                    --      5,013
                             --------  ---------


  Net income (loss)           $12,873  $(84,108)
                             ========  =========

  Earnings (loss) per share
   - diluted                    $0.33    $(2.13)
  EBITDA per share              $1.07      $1.75
  Shares outstanding -
   diluted                     39,330     39,471

  EBITDA                      $42,145    $70,042

  Selected cash flow
   information:
   Bad debt (recovery)
    expense                    $(610)     $5,205
   Capital expenditures        $4,935    $10,368

  Other information:
   Equity-based
    compensation expense,
    net                        $5,197     $7,265

  Billing days                    251        253

                     Kforce Inc.
                   Key Statistics
                     (Unaudited)



                        Q4 2009   Q3 2009   Q4 2008
                       --------  --------  --------


  Total Firm
  -------------------
  Flex revenue
   (000's)             $217,199  $221,722  $228,179
  Revenue per billing
   day (000's)           $3,561    $3,464    $3,680
  Sequential flex
   revenue change         -2.0%      1.1%     -3.1%
  Hours (000's)           3,713     3,752     3,794
  Flex GP %               28.7%     29.7%     29.8%

  Search revenue
   (000's)               $7,403    $6,551   $12,775
  Placements                607       516       840
  Average fee           $12,197   $12,706   $15,207
  Billing days               61        64        62


  Technology
  -------------------
  Flex revenue
   (000's)             $116,817  $114,777  $123,648
  Revenue per billing
   day (000's)           $1,915    $1,793    $1,994
  Sequential flex
   revenue change          1.8%      3.4%     -1.1%
  Hours (000's)           1,888     1,844     1,920
  Flex GP %               27.0%     27.4%     27.4%

  Search revenue
   (000's)               $2,661    $2,553    $5,133
  Placements                205       167       313
  Average fee           $12,964   $15,289   $16,414


  Finance &
   Accounting
  -------------------
  Flex revenue
   (000's)              $35,432   $37,615   $39,192
  Revenue per billing
   day (000's)             $581      $588      $632
  Sequential flex
   revenue change         -5.8%      1.3%     -8.0%
  Hours (000's)           1,103     1,132     1,127
  Flex GP %               29.9%     30.8%     34.0%

  Search revenue
   (000's)               $4,464    $3,675    $7,236
  Placements                381       333       491
  Average fee           $11,727   $11,046   $14,727


  Health & Life
   Sciences
  -------------------
  Flex revenue
   (000's)              $37,203   $40,167   $44,642
  Revenue per billing
   day (000's)             $610      $628      $720
  Sequential flex
   revenue change         -7.4%     -3.2%     -9.4%
  Hours (000's)             416       457       505
  Flex GP %               28.8%     30.1%     29.2%

  Search revenue
   (000's)                 $278      $323      $406
  Placements                 21        16        36
  Average fee           $13,216   $20,290   $11,287


  Government
   Solutions
  -------------------
  Flex revenue
   (000's)              $27,747   $29,163   $20,697
  Revenue per billing
   day (000's)             $455      $455      $334
  Sequential flex
   revenue change         -4.9%     -1.7%     11.7%
  Hours (000's)             306       319       242
  Flex GP %               34.7%     36.4%     37.1%

                     Kforce Inc.
       Key Statistics - Health & Life Sciences
                     (Unaudited)



                          Q4 2009  Q3 2009  Q4 2008
                          -------  -------  -------


  Clinical Research
  ----------------------
  Flex revenue (000's)    $23,874  $26,549  $27,058
  Revenue per billing
   day (000's)               $391     $415     $436
  Sequential flex
   revenue change          -10.1%    -3.8%    -9.7%
  Hours (000's)               262      292      304
  Flex GP %                 26.2%    27.7%    26.7%

  Search revenue (000's)     $111     $139     $272
  Placements                    6        5       24
  Average fee             $18,526  $27,866  $11,343


  Healthcare
  ----------------------
  Flex revenue (000's)    $13,329  $13,618  $17,584
  Revenue per billing
   day (000's)               $219     $213     $284
  Sequential flex
   revenue change           -2.1%    -2.2%    -8.9%
  Hours (000's)               154      165      201
  Flex GP %                 33.3%    34.7%    33.1%

  Search revenue (000's)     $167     $184     $134
  Placements                   15       11       12
  Average fee             $11,092  $16,830  $11,176

                     Kforce Inc.
             Consolidated Balance Sheets
                    (In Thousands)
                     (Unaudited)


                                 Dec 31,    Dec 31,
                                   2009       2008
                                ---------  ---------
             ASSETS

  Current Assets:
   Cash and cash equivalents       $2,812       $660
   Trade receivables, net of
    allowances                    123,144    132,428
   Income tax refund
    receivable                        246        487
   Deferred tax asset, net          6,011      5,994
   Prepaid expenses and other
    current assets                  4,924      6,177
                                ---------  ---------
     Total current assets         137,137    145,746

  Fixed assets, net                11,407     14,687
  Other assets, net                32,914     29,032
  Deferred tax asset, net          10,380     10,627
  Intangible assets, net           10,075     10,604

  Goodwill                        137,912    140,119
                                ---------  ---------

     Total assets                $339,825   $350,815
                                =========  =========

         LIABILITIES AND
      STOCKHOLDERS' EQUITY

  Current Liabilities:
   Accounts payable and other
    accrued liabilities           $25,437    $28,084
   Accrued payroll costs           50,690     51,310
   Other current liabilities        2,807      1,917

   Income taxes payable               279      4,133
                                ---------  ---------
     Total current liabilities     79,213     85,444
  Long-term debt - credit
   facility                         3,000     38,022
  Long-term debt - other            1,784      2,294

  Other long-term liabilities      29,103     19,212
                                ---------  ---------
     Total liabilities            113,100    144,972

  Commitments and
   contingencies

  Stockholders' Equity:
   Preferred stock                     --         --
   Common stock                       633        619
   Additional paid-in capital     338,890    325,187
   Accumulated other
    comprehensive (loss)
    income                        (1,213)        389
   Retained earnings               41,345     28,472
   Less reacquired shares at
    cost                        (152,930)  (148,824)
                                ---------  ---------
     Total stockholders'
      equity                      226,725    205,843
                                ---------  ---------
     Total liabilities and
      stockholders' equity       $339,825   $350,815
                                =========  =========

                                          Kforce Inc.
                       Selected Financial Information and Reconciliations
                           (In Thousands, Except Per Share Amounts)
                                          (Unaudited)

  Net Income and Earnings Per Share Before Impairment Charge


                                                                              Twelve Months
                                                       Three Months Ended         Ended
                                                         Dec. 31, 2008        Dec. 31, 2008
                                                      -------------------  ------------------

                                                                    Per                 Per
                                                           $       share       $       share
                                                      ----------  -------  ---------  -------
  GAAP Net Loss                                       $(107,878)  $(2.81)  $(84,108)  $(2.13)
   Goodwill & Intangible Assets Impairment, Pre-Tax      129,409     3.37    129,409     3.28

   Tax benefit from impairment charge                   (14,174)   (0.37)   (14,174)   (0.36)
                                                      ----------  -------  ---------  -------
   Goodwill & Intangible Assets Impairment,
    After-Tax                                            115,235     3.00    115,235     2.92

   Earnings Per Share Adjustment (*)                          --       --         --   (0.01)
                                                      ----------  -------  ---------  -------
  Adjusted Net Income and Earnings Per Share              $7,357    $0.19    $31,127    $0.78

  Weighted Average Shares Outstanding - Basic             38,408              39,471
  Weighted Average Shares Outstanding - Diluted           38,860              39,926

  Adjusted Net Income and Earnings Per Share, a non-GAAP financial measure, is defined as net
   income before the non-cash impairment charges related to goodwill and intangible assets.
   Adjusted Net Income should not be considered a measure of financial performance under
   generally accepted accounting principles and has been provided for consistency and
   comparability of the 2008 results with net income and earnings per share from other
   periods.

  (*) This earnings per share adjustment is necessary to properly reconcile net loss per
   share on a GAAP basis to Adjusted Net Income per share. Earnings Per Share Before
   Impairment Charge, a non-GAAP financial measure, is based on Net Income Before Impairment
   Charge and diluted weighted average shares outstanding; however, the reconciling items
   within the table above are based on basic weighted average shares outstanding, as the
   inclusion of dilutive securities such as stock options and stock awards would have an
   anti-dilutive effect on loss per share.

                                             Kforce Inc.
                          Selected Financial Information and Reconciliations
                               (In Thousands, Except Per Share Amounts)
                                             (Unaudited)

  Quarterly EBITDA

                                                                 Three Months Ended
                                                ----------------------------------------------------

                                                   Dec 31,         Sept 30,            Dec 31,
                                                     2009            2009               2008
                                                --------------  ---------------  -------------------

                                                         Per              Per                  Per
                                                   $     share     $      share       $       share
                                                ------  ------  -------  ------  ----------  -------

  GAAP Net Income (Loss)                        $3,533   $0.09   $2,272   $0.06  $(107,878)  $(2.81)
   Loss from Discontinued Operations, Net of
    Income Taxes                                    --      --       --      --        (40)   (0.00)
                                                ------  ------  -------  ------  ----------  -------
  Income (Loss) from Continuing Operations      $3,533   $0.09   $2,272   $0.06  $(107,838)  $(2.81)
   Goodwill & Intangible Assets Impairment,
    Pre-Tax                                         --      --       --      --     129,409     3.37
   Depreciation & Amortization                   2,919    0.07    2,829    0.07       3,174     0.08
   Acceleration of PARS                             --      --    3,624    0.09          --       --
   Amortization of Stock Options & SARS             --      --       15    0.00         147     0.00
   Amortization of Restricted Stock & PARS         413    0.01      700    0.02         571     0.01
   Interest Expense and Other                      288    0.01      285    0.01         367     0.01
   Income Tax Expense (Benefit)                  2,475    0.06    1,814    0.04    (10,196)   (0.27)

   Earnings Per Share Adjustment (*)                --      --       --      --          --     0.01
                                                ------  ------  -------  ------  ----------  -------

  EBITDA                                        $9,628   $0.24  $11,539   $0.29     $15,634    $0.40
                                                ======  ======  =======  ======  ==========  =======

  Weighted Average Shares Outstanding - Basic   38,951           38,525              38,408
  Weighted Average Shares Outstanding -
   Diluted                                      39,803           39,403              38,860

  EBITDA, a non-GAAP financial measure, is defined as earnings before income (loss) from
   discontinued operations, non-cash impairment charges, interest, income taxes, depreciation and
   amortization and amortization of stock-based compensation expense. EBITDA should not be
   considered a measure of financial performance under generally accepted accounting principles.
   Items excluded from EBITDA are significant components in understanding and assessing financial
   performance.

  (*) This earnings per share adjustment is necessary to properly reconcile net loss per share on a
   GAAP basis to Adjusted Net Income per share. Earnings Per Share Before Impairment Charge, a
   non-GAAP financial measure, is based on Net Income Before Impairment Charge and diluted weighted
   average shares outstanding; however, the reconciling items within the table above are based on
   basic weighted average shares outstanding, as the inclusion of dilutive securities such as stock
   options and stock awards would have an anti-dilutive effect on loss per share.

  Quarterly Net Income before Equity-Based Compensation
   Expense and Impairment Charge


                                                                 Three Months Ended
                                                ----------------------------------------------------

                                                   Dec 31,         Sept 30,            Dec 31,
                                                     2009            2009               2008
                                                --------------  ---------------  -------------------

                                                         Per              Per                  Per
                                                   $     share     $      share       $       share
                                                ------  ------  -------  ------  ----------  -------

  GAAP Net Income (Loss)                        $3,533   $0.09   $2,272   $0.06  $(107,878)  $(2.81)
   Loss from Discontinued Operations, Net of
    Income Taxes                                    --      --       --      --        (40)   (0.00)
                                                ------  ------  -------  ------  ----------  -------
  Income (Loss) from Continuing Operations      $3,533   $0.09   $2,272   $0.06  $(107,838)  $(2.81)
  Goodwill & Intangible Assets Impairment, Net
   of Income Taxes                                  --      --       --      --     115,235     3.00
  Equity-Based Compensation Expense, Net:
   Alternative LTI Valuation Expense               617    0.01      978    0.02          --       --
   Acceleration of PARS                             --      --    3,624    0.09          --       --
   Amortization of Stock Options & SARS             --      --       15    0.00         147     0.00
   Amortization of Restricted Stock & PARS         413    0.01      700    0.02         571     0.01

   Income Tax Benefit                            (424)  (0.01)  (2,191)  (0.05)       (256)     0.00
                                                ------  ------  -------  ------  ----------  -------

   Equity-Based Compensation Expense, Net          606    0.01    3,126    0.08         462     0.01
                                                ------  ------  -------  ------  ----------  -------
  Net Income before Equity-Based Compensation
   Expense and Impairment charge                $4,139   $0.10   $5,398   $0.14      $7,859    $0.20
                                                ======  ======  =======  ======  ==========  =======

  Weighted Average Shares Outstanding - Basic   38,951           38,525              38,408
  Weighted Average Shares Outstanding -
   Diluted                                      39,803           39,403              38,860

  "Net Income before Equity-Based Compensation Expense and Impairment Charge", a non-GAAP financial
   measure, is defined as income (loss) from continuing operations, before non-cash impairment
   charges and compensation expense incurred in conjunction with share-based payment awards and
   alternative long-term incentive awards. Kforce measures the cost of employee services received in
   exchange for an equity based award based on the grant-date fair value of the award (with limited
   exceptions). That cost is recognized over the period in which the employee is required to provide
   service in exchange for the award, which is usually the vesting period.

  EBITDA and Net Income before Equity-Based Compensation Expense and Impairment Charge are key
   measures used by management to evaluate its operations and to provide useful information to
   investors. These measures should not be considered in isolation or as an alternative to net
   income, cash flows data or other financial statement information presented in the consolidated
   financial statements as indicators of financial performance or liquidity. These measurements are
   not determined in accordance with generally accepted accounting principles and are thus
   susceptible to varying calculations. The measures as presented may not be comparable to similarly
   titled measures of other companies.

                                     Kforce Inc.
                 Selected Financial Information and Reconciliations
                       (In Thousands, Except Per Share Amounts)
                                     (Unaudited)

  Year to Date EBITDA

                                                        Twelve Months Ended
                                                -----------------------------------

                                                   Dec. 31,           Dec. 31,
                                                     2009               2008
                                                ---------------  ------------------

                                                          Per                 Per
                                                   $      share      $       share
                                                -------  ------  ---------  -------

  GAAP Net Income (Loss)                        $12,873   $0.33  $(84,108)  $(2.13)
   Income from Discontinued Operations, Net of
    Income Taxes                                     --      --      5,013     0.13
                                                -------  ------  ---------  -------
  Income (Loss) from Continuing Operations      $12,873   $0.33  $(89,121)  $(2.26)
   Goodwill & Intangible Assets Impairment,
    Pre-Tax                                         870    0.02    129,409     3.28
   Depreciation & Amortization                   11,673    0.30     13,824     0.35
   Acceleration of PARS & SARS                    3,624    0.09      6,009     0.15
   Amortization of Stock Options & SARS             127    0.00      2,363     0.06
   Amortization of Restricted Stock & PARS        2,620    0.07      3,372     0.09
   Interest Expense and Other                     1,338    0.03      2,258     0.06
   Income Tax Expense                             9,020    0.23      1,928     0.05

   Earnings Per Share Adjustment (*)                 --      --         --   (0.03)
                                                -------  ------  ---------  -------

  EBITDA                                        $42,145   $1.07    $70,042    $1.75
                                                =======  ======  =========  =======

  Weighted Average Shares Outstanding - Basic    38,485             39,471
  Weighted Average Shares Outstanding -
   Diluted                                       39,330             39,926

  EBITDA, a non-GAAP financial measure, is defined as earnings (loss) before income
   from discontinued operations, non-cash impairment charges, interest, income
   taxes, depreciation and amortization and amortization of stock-based
   compensation expense. EBITDA should not be considered a measure of financial
   performance under generally accepted accounting principles. Items excluded from
   EBITDA are significant components in understanding and assessing financial
   performance.

  (*) This earnings per share adjustment is necessary to properly reconcile net
   loss per share on a GAAP basis to Adjusted Net Income per share. Earnings Per
   Share Before Impairment Charge, a non-GAAP financial measure, is based on Net
   Income Before Impairment Charge and diluted weighted average shares outstanding;
   however, the reconciling items within the table above are based on basic
   weighted average shares outstanding, as the inclusion of dilutive securities
   such as stock options and stock awards would have an anti-dilutive effect on
   loss per share.

  Year to Date Net Income before Equity-Based Compensation
   Expense and Impairment Charge


                                                        Twelve Months Ended
                                                -----------------------------------

                                                   Dec. 31,           Dec. 31,
                                                     2009               2008
                                                ---------------  ------------------

                                                          Per                 Per
                                                   $      share      $       share
                                                -------  ------  ---------  -------

  GAAP Net Income (Loss)                        $12,873   $0.33  $(84,108)  $(2.13)
   Income from Discontinued Operations, Net of
    Income Taxes                                     --      --      5,013     0.13
                                                -------  ------  ---------  -------
  Income (Loss) from Continuing Operations      $12,873   $0.33  $(89,121)  $(2.26)
  Goodwill & Intangible Assets Impairment, Net
   of Income Taxes                                   --      --    115,235     2.92
  Equity-Based Compensation Expense, Net:
   Alternative LTI Valuation Expense              2,467    0.06         --       --
   Acceleration of PARS & SARS                    3,624    0.09      6,009     0.15
   Amortization of Stock Options & SARS             127    0.00      2,363     0.06
   Amortization of Restricted Stock & PARS        2,620    0.07      3,372     0.09

   Income Tax Benefit                           (3,641)  (0.09)    (4,479)   (0.12)
                                                -------  ------  ---------  -------

   Equity-Based Compensation Expense, Net         5,197    0.13      7,265     0.18
                                                -------  ------  ---------  -------
  Net Income before Equity-Based Compensation
   Expense and Impairment charge                $18,070   $0.46    $33,379    $0.84
                                                =======  ======  =========  =======

  Weighted Average Shares Outstanding - Basic    38,485             39,471
  Weighted Average Shares Outstanding -
   Diluted                                       39,330             39,926

  "Net Income before Equity-Based Compensation Expense and Impairment Charge", a
   non-GAAP financial measure, is defined as income (loss) from continuing
   operations, before non-cash impairment charges and compensation expense incurred
   in conjunction with share-based payment awards and alternative long-term
   incentive awards. Kforce measures the cost of employee services received in
   exchange for an equity based award based on the grant-date fair value of the
   award (with limited exceptions). That cost is recognized over the period in
   which the employee is required to provide service in exchange for the award,
   which is usually the vesting period.

  EBITDA and Net Income before Equity-Based Compensation Expense and Impairment
   Charge are key measures used by management to evaluate its operations and to
   provide useful information to investors. These measures should not be considered
   in isolation or as an alternative to net income, cash flows data or other
   financial statement information presented in the consolidated financial
   statements as indicators of financial performance or liquidity. These
   measurements are not determined in accordance with generally accepted accounting
   principles and are thus susceptible to varying calculations. The measures as
   presented may not be comparable to similarly titled measures of other companies.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Kforce Inc.

CONTACT:  Kforce Inc.
Michael Blackman, Chief Corporate Development Officer
(813) 552-2927

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.

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