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Kforce(KFRC) - 2024 Q4 - Annual Report
KFRCKforce(KFRC)2025-02-21 21:06

Financial Performance - Revenue for 2024 was 1,405,308,adecreaseof8.21,405,308, a decrease of 8.2% from 1,531,756 in 2023[196] - Gross profit for 2024 was 385,445,down9.7385,445, down 9.7% from 427,066 in 2023[196] - Net income for 2024 was 50,414,representingadeclineof17.450,414, representing a decline of 17.4% compared to 61,075 in 2023[196] - Earnings per share (diluted) for 2024 was 2.68,downfrom2.68, down from 3.13 in 2023, a decrease of 14.4%[196] - Future revenue growth is expected to be influenced by changes in client demand and economic conditions[19] - Net income for 2024 was 50,414thousand,adecreaseof17.550,414 thousand, a decrease of 17.5% from 61,075 thousand in 2023 and a decrease of 33.2% from 75,431thousandin2022[204]−Cashprovidedbyoperatingactivitiesin2024was75,431 thousand in 2022[204] - Cash provided by operating activities in 2024 was 86,874 thousand, slightly down from 91,465thousandin2023[204]−Totalstockholders′equityasofDecember31,2024,was91,465 thousand in 2023[204] - Total stockholders' equity as of December 31, 2024, was 154,618 thousand, a decrease from 159,080thousandin2023[201]AssetsandLiabilities−Totalcurrentassetsdecreasedto159,080 thousand in 2023[201] Assets and Liabilities - Total current assets decreased to 225,406 in 2024 from 244,459in2023,adeclineof7.8244,459 in 2023, a decline of 7.8%[199] - Long-term debt under the credit facility was 32.7 million as of December 31, 2024, down from 41.6millionin2023[199]−Totalfixedassets,netdecreasedto41.6 million in 2023[199] - Total fixed assets, net decreased to 7,723 thousand in 2024 from 9,418thousandin2023,primarilyduetoincreaseddepreciation[263]−Totalaccountspayableandotheraccruedliabilitiesdecreasedfrom9,418 thousand in 2023, primarily due to increased depreciation[263] - Total accounts payable and other accrued liabilities decreased from 64.8 million in 2023 to 61.8millionin2024,areductionofapproximately4.661.8 million in 2024, a reduction of approximately 4.6%[271] - Deferred compensation payable increased from 5.9 million in 2023 to 8.6millionin2024,representingagrowthofapproximately45.88.6 million in 2024, representing a growth of approximately 45.8%[277] - Total other long-term liabilities increased from 54.3 million in 2023 to 58.1millionin2024,anincreaseofapproximately7.958.1 million in 2024, an increase of approximately 7.9%[284] Investments and Expenditures - The firm expects to continue strategic investments in technology and operational efficiency to improve margins[15] - Capital expenditures in 2024 were 7,573 thousand, compared to 7,763thousandin2023[204]−Capitalizedsoftwareincreasedto7,763 thousand in 2023[204] - Capitalized software increased to 29,090 thousand in 2024, reflecting investments in technology capabilities[264] Stock and Compensation - Dividends paid in 2024 were 28,236thousand,anincreasefrom28,236 thousand, an increase from 27,562 thousand in 2023 and 24,027thousandin2022[204]−Thecompanyrepurchasedcommonstockworth24,027 thousand in 2022[204] - The company repurchased common stock worth 41,938 thousand in 2024, down from 75,024thousandin2023[204]−Thecompanyrecognizedstock−basedcompensationexpenseof75,024 thousand in 2023[204] - The company recognized stock-based compensation expense of 14,044 thousand in 2024, down from 17,747thousandin2023[204]−Stock−basedcompensationexpensefor2024was17,747 thousand in 2023[204] - Stock-based compensation expense for 2024 was 14.0 million, down from 17.7millionin2023,reflectingadecreaseofapproximately20.917.7 million in 2023, reflecting a decrease of approximately 20.9%[287] - The total intrinsic value of restricted stock vested in 2024 was 15.1 million, down from 22.5millionin2023,adecreaseofapproximately33.322.5 million in 2023, a decrease of approximately 33.3%[291] Tax and Compliance - The effective tax rate for 2024 was 25.4%, down from 28.4% in 2023, influenced by a reduction in non-deductible expenses[265] - The company is adopting new guidance for income tax disclosures effective January 1, 2025, which is not expected to have a material effect on consolidated financial statements[256] Operational Insights - The company maintained effective internal control over financial reporting as of December 31, 2024[189] - The company anticipates challenges in attracting talent due to a constrained supply of consultants in a high-demand environment[19] - The allowance for credit losses decreased to 916 thousand in 2024 from 1,106thousandin2023,indicatingimprovedcreditquality[262]−Tradereceivables,netincreasedby1,106 thousand in 2023, indicating improved credit quality[262] - Trade receivables, net increased by 17,638 thousand in 2024, compared to an increase of 35,301thousandin2023[204]−Thecompanyhadadeferredincometaxprovisionof35,301 thousand in 2023[204] - The company had a deferred income tax provision of (1,871) thousand in 2024, compared to $1,647 thousand in 2023[204] - As of December 31, 2024 and 2023, the company reported no material contract liabilities[221] - Trade accounts receivable reserves were less than 1% of gross trade receivables at both December 31, 2024 and 2023[231] Legal and Risk Management - Kforce is involved in legal proceedings that are not expected to have a material adverse effect on its consolidated financial statements[295] - The company maintains liability insurance covering various risks, but there is no assurance that it will cover all events or that coverage limits will be sufficient[295]