false000093042000009304202023-07-312023-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
___________________________________________ 
FORM 8-K
 ___________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 2023
 _________________________________________________________________
 Standard Kforce Logo_Full Color (1).jpg
Kforce Inc.
Exact name of registrant as specified in its charter
_______________________________________________________________ 
 
Florida
000-26058
59-3264661
State or other jurisdiction of incorporation
Commission File Number
IRS Employer Identification No.
1150 Assembly Drive, Suite 500, Tampa, Florida 33607
Address of principal executive offices Zip Code
Registrant’s telephone number, including area code: (813) 552-5000 
_______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 per shareKFRCNASDAQ
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





Item 2.02 Results of Operations and Financial Condition.
On July 31, 2023, Kforce Inc. (the "Firm") issued a press release regarding its earnings for the second quarter ended June 30, 2023. A copy of this press release is furnished as Exhibit 99.1 to this Report and is incorporated into this Report by reference.
The information furnished herewith pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Form 8-K and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission by Kforce Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
On December 6, 2021, we announced David L. Dunkel’s retirement, and Joseph J. Liberatore’s appointment as the Chief Executive Officer of the Firm. At that time, Mr. Dunkel entered into a multi-year part-time employment agreement to provide support, on a limited basis, to the Firm in a non-executive employee role, in addition to continuing his role as Chairman of the Firm’s Board of Directors (the “Board”). Mr. Dunkel and the Board determined that due to the success of the transition and the confidence they have in the Firm’s executive management team that they were comfortable accelerating his transition to a role solely as Board Chairman. As a result, Mr. Dunkel’s last day of employment with the Firm under his part-time employment agreement was July 31, 2023.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished herewith:
Exhibit
Number
Description
Press Release of Kforce Inc. dated July 31, 2023.
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.





 SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
KFORCE INC.
(Registrant)
Date:
July 31, 2023
By:/s/ DAVID M. KELLY
David M. Kelly,
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
KFORCE INC.
(Registrant)
Date:
July 31, 2023
By:/s/ JEFFREY B. HACKMAN
Jeffrey B. Hackman,
Senior Vice President, Finance and Accounting
(Principal Accounting Officer)




Exhibit 99.1
standardkforcelogo_fullcol.jpg 
KFORCE REPORTS SECOND QUARTER 2023 REVENUE OF $389.2 MILLION
AND EARNINGS PER SHARE OF $0.95
REDUCES ANNUALIZED OPERATING COSTS BY APPROXIMATELY $14.0 MILLION

TAMPA, FL, July 31, 2023 — Kforce Inc. (Nasdaq: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the second quarter of 2023.
Joseph J. Liberatore, President and Chief Executive Officer, said, “Our results for the second quarter reflect the continuation of an uncertain economic environment and, we believe, the actions being broadly taken across industries by our market-leading clients to ensure they are prepared for the possibility of a slowdown. While clients are acting with heightened caution today, we believe this is resulting in a tremendous backlog of desirable investments that will be prioritized once the macro uncertainties begin to clear. While the Firm continues to operate efficiently, it became clear to us that we needed to adjust our structural costs to align them with the lower levels of revenue that we are experiencing without compromising investment in key strategic initiatives. We anticipate that these difficult actions will reduce annual operating costs from current run rates by approximately $14 million.”
Mr. Liberatore continued, “We have built a solid foundation at Kforce. Our balance sheet is clean, and we expect our strong cash flows to continue providing us great flexibility to return significant capital to our shareholders. Our executive leadership team has been through multiple economic cycles and, we believe, has the experience to skillfully navigate through whatever may lie ahead. We are navigating through the current macro climate well, and we remain very excited about our strategic position and prospects for continuing to deliver above-market performance while continuing to make the necessary investments that should help drive long-term growth and put us in a position to attain double-digit operating margins.”
Quarterly Financial Highlights
•Revenue for the quarter ended June 30, 2023 was $389.2 million compared to $436.5 million for the quarter ended June 30, 2022, a decrease of 4.1% sequentially and 10.8% year-over-year.
•Overall Technology revenue decreased 3.5% sequentially and 8.5% year-over-year.
•Gross profit margins of 28.3% increased 20 basis points sequentially and decreased 170 basis points year-over-year. Flex gross profit margins of 26.3% increased 10 basis points sequentially and decreased 90 basis points year-over-year.
•SG&A expenses as a percentage of revenue was 21.3% for the quarter ended June 30, 2023, which decreased 70 basis points sequentially and year-over-year.
•Operating margins were 6.7% for the quarter ended June 30, 2023, an increase of 90 basis points sequentially and a decrease of 110 basis points year-over-year.
•Diluted earnings per share for the quarter ended June 30, 2023 were $0.95 per share, an increase of approximately 16% sequentially and a decrease of 27% year-over-year.
•We returned approximately $21.0 million and $38.0 million in capital to our shareholders for the three and six months ended June 30, 2023, respectively.
•Our Board of Directors approved a third quarter cash dividend of $0.36 per share to shareholders of record as of the close of business on September 15, 2023, which will be payable on September 29, 2023.



Third Quarter 2023 - Guidance
Looking forward to the third quarter of 2023, there will be 63 billing days, which is one fewer than the second quarter of 2023 and the third quarter of 2022. Current estimates for the third quarter of 2023 are:
•Revenue of $359 million to $367 million
•Earnings per share of $0.60 to $0.68
•Gross profit margin of 28.1% to 28.3%
•Flex gross profit margin of 26.0% to 26.2%
•SG&A expense as a percent of revenue of 22.9% to 23.1%
•Operating margin of 4.7% to 5.1%
•WASO of 19.3 million
•Effective tax rate of 29.2%
Our guidance for earnings per share for the third quarter of 2023 includes a charge of $5.5 million, or $0.22 per share, related to actions taken to reduce our structural costs.
Conference Call
On Monday, July 31, 2023, 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 is a solutions firm specializing in technology and other professional staffing services. Each year, we provide career opportunities for approximately 25,000 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’ve 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 desirable investments that will be prioritized once the macro uncertainties begin to clear, the expected reduction in annual operating costs, Kforce's (the "Firm") strong cash flows providing great flexibility to return significant capital to shareholders, the executive leadership team’s experience to skillfully navigate the future, the Firm’s strategic position and prospects for continuing to deliver above-market performance while continuing to make certain investments, the Firm’s positioning to attain double-digit operating margins, and the Firm's guidance for the third quarter of 2023. 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, 2022, 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
June 30, 2023March 31, 2023June 30, 2022
Revenue$389,190 $405,997 $436,516 
Direct costs278,924 292,021 305,444 
Gross profit110,266 113,976 131,072 
Selling, general and administrative expenses82,993 89,339 96,147 
Depreciation and amortization1,340 1,234 1,076 
Income from operations25,933 23,403 33,849 
Other expense (income), net313 1,045 (2,672)
Income from operations, before income taxes25,620 22,358 36,521 
Income tax expense7,046 6,148 9,605 
Net income$18,574 $16,210 $26,916 
Earnings per share – diluted$0.95 $0.82 $1.30 
Weighted average shares outstanding – diluted19,611 19,667 20,718 
Adjusted EBITDA$31,582 $28,729 $39,334 
Billing days64 64 64 




Kforce Inc.
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
June 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$147 $121 
Trade receivables, net of allowances249,895 269,496 
Income tax refund receivable669 35 
Prepaid expenses and other current assets8,743 8,108 
Total current assets259,454 277,760 
Fixed assets, net10,160 8,647 
Other assets, net70,636 75,771 
Deferred tax assets, net2,780 4,786 
Goodwill25,040 25,040 
Total assets$368,070 $392,004 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities$60,247 $72,792 
Accrued payroll costs39,414 48,369 
Current portion of operating lease liabilities3,581 4,576 
Income taxes payable999 5,696 
Total current liabilities104,241 131,433 
Long-term debt – credit facility24,600 25,600 
Other long-term liabilities51,611 52,773 
Total liabilities180,452 209,806 
Commitments and contingencies
Stockholders’ equity:
Preferred stock— — 
Common stock732 732 
Additional paid-in capital517,422 507,734 
Accumulated other comprehensive income— 6 
Retained earnings512,937 492,764 
Treasury stock, at cost(843,473)(819,038)
Total stockholders’ equity187,618 182,198 
Total liabilities and stockholders’ equity$368,070 $392,004 






Kforce Inc.
Key Statistics
(Unaudited)
Q2 2023Q1 2023Q2 2022
Total Firm
Total Revenue (000’s)$389,190 $405,997 $436,516 
GP %28.3 %28.1 %30.0 %
Flex revenue (000’s)$378,470 $395,532 $419,700 
Hours (000's)4,462 4,780 5,230 
Flex GP %26.3 %26.2 %27.2 %
Direct Hire revenue (000’s)$10,720 $10,465 $16,816 
Placements535 512 800 
Average fee$20,067 $20,452 $21,040 
Billing days64 64 64 
Technology
Total Revenue (000’s)$352,025 $364,844 $384,595 
GP %27.1 %27.0 %28.6 %
Flex revenue (000’s)$346,326 $359,524 $375,507 
Hours (000’s)3,829 4,032 4,292 
Flex GP %25.9 %25.9 %26.9 %
Direct Hire revenue (000’s)$5,699 $5,320 $9,088 
Placements268 232 369 
Average fee$21,305 $22,951 $24,654 
Finance and Accounting
Total Revenue (000’s)$37,165 $41,153 $51,921 
GP %39.8 %37.8 %40.7 %
Flex revenue (000’s)$32,144 $36,008 $44,193 
Hours (000’s)633 748 938 
Flex GP %30.4 %28.9 %30.4 %
Direct Hire revenue (000’s)$5,021 $5,145 $7,728 
Placements267 280 431 
Average fee$18,824 $18,382 $17,946 


Kforce Inc.
Revenue Growth Rates
(Unaudited)
Changes in Year-Over-Year Flex Revenue
(Per Billing Day)
Q2 2023Q1 2023Q4 2022Q3 2022Q2 2022
Billing Days6464616464
Technology(7.8)%2.2 %8.5 %15.7 %23.3 %
FA(27.3)%(28.2)%(28.8)%(30.7)%(49.0)%
Total Flex(9.8)%(1.6)%3.1 %8.7 %7.2 %



Kforce Inc.
Non-GAAP Financial Measures
(In Thousands, Except Per Share Amounts)
(Unaudited)
In addition to our financial results presented in accordance with GAAP, Kforce may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. Our non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. We view these non-GAAP financial measures as supplemental and they are not intended to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Free Cash Flow
“Free Cash Flow,” a non-GAAP financial measure, is defined by Kforce as net cash provided by operating activities determined in accordance with GAAP, less capital expenditures. Management believes this provides an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and is useful information to investors as it provides a measure of the amount of cash generated from the business that can be used for strategic opportunities including investing in our business, repurchasing common stock, paying dividends or making acquisitions. Free Cash Flow is limited, however, because it does not represent the residual cash flow available for discretionary expenditures. Therefore, we believe it is important to view Free Cash Flow as a complement to (but not a replacement of) our unaudited condensed consolidated statements of cash flows.
Six Months Ended June 30,
20232022
Net cash provided by operating activities$40,431 $70,760 
Capital expenditures(4,950)(3,458)
Free cash flow35,481 67,302 
Change in debt(1,000)(100,000)
Repurchases of common stock(24,614)(19,600)
Cash dividends(13,947)(12,187)
Proceeds from the sale of our joint venture interest5,059 — 
Equity method investment(750)(500)
Note receivable issued to our joint venture— (2,000)
Other(203)(30)
Change in cash and cash equivalents$26 $(67,015)
Adjusted EBITDA
“Adjusted EBITDA,” a non-GAAP financial measure, is defined by Kforce as net income before depreciation and amortization, stock-based compensation expense, interest expense, net, income tax expense, loss from equity method investment, adjustments associated with note receivable issued to our joint venture and gain from swap termination. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows, or other financial statement information presented in the consolidated financial statements as indicators of financial performance or liquidity. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.


In addition, although we excluded amortization of stock-based compensation expense because it is a non-cash expense, we expect to continue to incur stock-based compensation in the future and the associated stock issued may result in an increase in our outstanding shares of stock, which may result in the dilution of our shareholder ownership interest. We suggest that you evaluate these items and the potential risks of excluding such items when analyzing our financial position.
Three Months Ended
June 30, 2023March 31, 2023June 30, 2022
Net income$18,574 $16,210 $26,916 
Depreciation and amortization1,340 1,234 1,076 
Stock-based compensation expense4,309 4,326 4,410 
Interest expense, net313 296 371 
Income tax expense7,046 6,148 9,605 
Loss from equity method investment— 750 1,015 
Adjustments associated with note receivable issued to our joint venture— (235)— 
Gain from swap termination— — (4,059)
Adjusted EBITDA$31,582 $28,729 $39,334 


v3.23.2
Cover Page
Jul. 31, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 31, 2023
Entity Registrant Name Kforce Inc
Entity Incorporation, State or Country Code FL
Entity File Number 000-26058
Entity Tax Identification Number 59-3264661
Entity Address, Address Line One 1150 Assembly Drive, Suite 500
Entity Address, City or Town Tampa
Entity Address, State or Province FL
Entity Address, Postal Zip Code 33607
City Area Code 813
Local Phone Number 552-5000
Title of 12(b) Security Common Stock, $0.01 per share
Trading Symbol KFRC
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000930420
Kforce (NASDAQ:KFRC)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025 Plus de graphiques de la Bourse Kforce
Kforce (NASDAQ:KFRC)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025 Plus de graphiques de la Bourse Kforce