kforce inc (KFRC) Snapshot

Kforce Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, total revenue was $265,627,000 compared to $268,350,000 a year ago. Income from operations was $5,246,000 compared to loss from operations of $30,172,000 a year ago. Income from continuing operations before income taxes was $4,990,000 compared to loss from continuing operations before income taxes of $30,564,000 a year ago. Income from continuing operations was $3,094,000 compared to loss from continuing operations of $17,727,000 a year ago. Net income was $3,094,000 or $0.09 diluted per share compared to $4,076,000 or $0.12 diluted per share a year ago. Adjusted EBITDA was $7,904,000 or $0.23 per share compared to adjusted LBITDA of $1,747,000 or $0.05 per share a year ago. Net income and EPS decreased from $8.6 million or $0.24 per share, excluding the goodwill impairment charge in fourth quarter, primarily as a result of the increased cost of recent additions to revenue responsible headcount and increased statutory costs in the first quarter. Relative to fourth quarter of 2012, EPS was impacted by $0.10 as a result of increased statutory costs and $0.04 from investments in revenue responsible headcount. These costs were essentially as expected. Capital expenditures for the first quarter were $2.6 million The company provided earnings guidance for the second quarter of 2013. For the second quarter, the company expects revenues may be in the $277 million to $281 million range and earnings per share in the range of $0.19 to $0.21. The second quarter of 2013 has 64 billing days, as compared to 63 billing days in the first quarter of 2013. Earnings per share in the second quarter relative to the first quarter will be impacted by the decrease in payroll taxes but will still be impacted by its investments in revenue responsible headcount. Effective tax rate in the second quarter is expected to be 40.8%. The company is making progress toward its goal of accelerating revenue growth in the second half of 2013. Assuming a similar mix of revenues and stable gross margins, the company expects operating margins approaching 6% in the second half of the year as year-over-year revenue growth rates exceed 10% and to improve into 2014 as revenues increase. The company expects full year capital expenditures to be between $8 million and $9 million. The company's projected annual EBITDA exceeds $60 million.

On April 26, 2013, the Board of Directors of Kforce Inc. adopted and approved, effective immediately, the amended and restated Bylaws of the firm to adopt a majority vote standard in uncontested elections of directors taking place after the firm's 2013 Annual Meeting of Shareholders. The Board believes this change is in the best interests of the firm and its shareholders and is a significant enhancement to its corporate governance practices. The Amended and Restated Bylaws retain plurality voting for contested elections.

Kforce Inc., Q1 2013 Earnings Call, Apr 30, 2013