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Dec 31, 2021
Kforce Q4 2021 Earnings Report
Reported fourth quarter revenue of $410.4 million, up nearly 18% year-over-year, with technology revenues up 32% year-over-year and EPS of $0.98, up 14.0% year-over-year.
Key Takeaways
Kforce reported a strong fourth quarter in 2021, with revenue reaching $410.4 million, an increase of 17.8% year-over-year, per billing day. Technology revenue saw substantial growth, increasing 32.0% year-over-year. The company's EPS also increased by 14.0% year-over-year, reaching $0.98 per share.
Revenue for Q4 2021 reached $410.4 million, an increase of 17.8% compared to Q4 2020, per billing day.
Technology revenue increased by 32.0% year-over-year, per billing day.
Net income for Q4 2021 was $20.6 million, or $0.98 per share, compared to $18.3 million, or $0.86 per share, for Q4 2020.
The Board of Directors approved a 15% increase in the quarterly dividend and increased share repurchase authorization to $100 million.
Revenue by Segment
Forward Guidance
Kforce anticipates revenue between $403 million and $411 million and earnings per share between $0.72 and $0.80 for the first quarter of 2022.
Positive Outlook
- Solid continued growth in the Technology business of at least 15% year-over-year.
- Enhanced profitability levels.
- Gross profit margin of 28.1% to 28.3%.
- Flex gross profit margin of 25.7% to 25.9%.
- SG&A expense as a percent of revenue of 22.2% to 22.4%.
Challenges Ahead
- Operating margins are impacted by payroll tax resets by approximately 150 basis points relative to the fourth quarter of 2021.
- Earnings per share is negatively impacted by approximately 21 cents relative to the fourth quarter of 2021.
- An overall decline in the FA business due to the year-over-year impact of the repositioning of our business to focus on higher skilled positions and the elimination of COVID-19 revenue streams with a partial offset of market growth in our ongoing FA business.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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