Kforce Announces First Quarter Results

Apr 25, 2001, 01:00 ET from Kforce.com, Inc.

    TAMPA, Fla., April 25 /PRNewswire Interactive News Release/ --
 Kforce.com, Inc. (Nasdaq:   KFRC), a full-service professional staffing firm,
 announced results for the first quarter ended March 31, 2001.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20010409/KFRCLOGO )
     Revenues for the three-month period ended March 31, 2001, were
 $191.6 million compared to $195.1 for the same period last year.  The Company
 reported net income for the first quarter of 2001 of $2.8 million or $0.09 per
 diluted share, compared to a net loss of $2.4 million or a loss of $0.05 per
 diluted share, for the comparable period last year.  Weighted average shares
 outstanding for the quarter were 32.8 million, compared with 44.2 million
 weighted average shares outstanding for the comparable period last year.
     Revenues from Operating Specialties for the quarter ended March 31, 2001,
 rose 36.2 percent over last year's results; Finance and Accounting decreased
 2.0 percent; and Information Technology declined 9.5 percent.  Overall flex
 revenues increased 6.0 percent and search revenues declined 27.2 percent.
     David Dunkel, president and chief executive officer of Kforce, said, "One
 of the Company's key strengths is its diverse business lines and time-
 offerings, which helped Kforce report positive earnings results for the
 quarter in a difficult economic environment.  Significant revenue increases in
 our Operating Specialties, particularly healthcare, pharmaceutical and
 scientific, contributed to our success this past quarter.  We will continue to
 place emphasis on our Operating Specialties and our flexible staffing business
 which we believe may partially offset the downward trend in permanent
 placement."
     William Sanders, the Company's chief financial officer, added,
 "Improvements to our back office operations in 2000 have helped us manage the
 business more proactively.  This and other initiatives have assisted our
 efforts to lower SG&A and more effectively align expenses with revenues.  This
 was particularly beneficial this past quarter with two days of billing loss
 attributed to extreme weather in the Northeast and one fewer billing day in
 February than last year due to the 2000 Leap Year calendar."
     Dunkel noted that, beginning with this quarter, results from Human
 Resources will be reported as a part of Information Technology.  He also noted
 that Kforce Consulting, the Company's solution offering, ceased operations
 with the remaining activities being integrated into Information Technologies.
     For additional information on Kforce, please see our 10-Q and 10-K filings
 with the SEC.  On April 25, 2001, Kforce will host a conference call and
 webcast to discuss first quarter 2001 results and elaborate on topics
 addressed in this press release.  We encourage interested parties to listen to
 the call.  The call will begin at 11:00 a.m. EDT and will be webcast live at
 www.kforce.com (select "About Us") or www.streetfusion.com and will be
 available for replay until May 25, 2001.  (Please allow time to download and
 prepare your system to participate in the webcast.  Visit www.realplayer.com
 to download the free software.)  The replay of the call will also be available
 through May 2, 2001, by dialing 1-800-964-3648 or for international access by
 dialing 1-402-998-0990.
 
     About Kforce
     Kforce (Nasdaq:   KFRC) is a full-service, professional staffing firm
 providing flexible and permanent staffing solutions for organizations and
 career management for individuals in the specialty skill areas of information
 technology, finance & accounting, human resources, engineering,
 pharmaceutical, healthcare, legal and scientific.  Backed by nearly 2000
 staffing specialists, Kforce operates in more than 40 markets in North
 America.  For more information, please visit our Web site at www.kforce.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 Operating Specialties, flexible staffing and permanent placement
 services; market acceptance of the Company's e-business initiative; changes in
 the service mix; ability of the Company to complete acquisitions; and the risk
 factors listed from time to time in the Company's reports filed with the
 Securities and Exchange Commission, as well as assumptions regarding the
 Foregoing.  The words "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 Company undertakes no obligation to publicly
 update or revise any forward-looking statement.  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.com, Inc.
                               Summary of Operations
                                 (000s OMITTED)
 
                                               Quarter Ended
                                      March 31,   March 31,   December 31,
                                       2001          2000        2000
                                                 (Unaudited)
     Revenue by Function:
       Finance/Accounting             $56,125      $57,269     $56,086
       Information Tech.              103,205      114,092     115,617
       Operating Specialties           32,290       23,702      28,377
     Total Revenue                    191,620      195,063     200,080
 
     Revenue by Time:
       Perm                            33,034       45,395      40,084
       Flexible                       158,586      149,668     159,996
     Total Revenue                    191,620      195,063     200,080
 
     Cost Of Sales                    111,520      106,862     111,970
     Gross Profit                      80,100       88,201      88,110
       GP %                             41.8%        45.2%       44.0%
 
     Selling, General & Admin.         68,961       89,310      78,376
     Deprec. & Amort.                   3,990        3,704       6,960
 
     Income from Operations             7,149       (4,813)      2,773
 
     Other Income                      (2,141)         683        (919)
 
     Earnings Before Taxes              5,008       (4,130)      1,855
 
     Income Tax Expense (Benefit)       2,167       (1,735)      1,845
 
     Net Income (Loss)                 $2,841      $(2,395)        $10
 
     Earnings (Loss) Per Share          $0.09       $(0.05)      $0.00
     EBITDA Per Share                   $0.31       $(0.01)      $0.22
     Shares Outstanding - Diluted      32,761       44,182      39,466
 
     Selected Cash Flow
      Information:
     Depreciation and
      Amortization                     $3,990       $3,704      $6,960
     Change in Allowance - A/R           $872         $705      $1,106
     Capital Expenditures              $3,556       $1,114      $3,846
     Acquisition Payments                $---       $1,155        $---
 
     Selected Balance Sheet
      Information:
     Total Cash and Cash
      Equivalents                      $3,333       $1,808      $1,865
     Accounts Receivable,
      less allowances                $116,231     $131,746    $125,931
     Total Assets                    $269,449     $309,003    $282,937
     Current Liabilities              $62,413      $62,162     $65,517
     Long-Term Liabilities            $47,811      $30,910     $62,403
     Total Stockholders' Equity      $159,224     $215,931    $155,017
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X06787187
 
 

SOURCE Kforce.com, Inc.
    TAMPA, Fla., April 25 /PRNewswire Interactive News Release/ --
 Kforce.com, Inc. (Nasdaq:   KFRC), a full-service professional staffing firm,
 announced results for the first quarter ended March 31, 2001.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20010409/KFRCLOGO )
     Revenues for the three-month period ended March 31, 2001, were
 $191.6 million compared to $195.1 for the same period last year.  The Company
 reported net income for the first quarter of 2001 of $2.8 million or $0.09 per
 diluted share, compared to a net loss of $2.4 million or a loss of $0.05 per
 diluted share, for the comparable period last year.  Weighted average shares
 outstanding for the quarter were 32.8 million, compared with 44.2 million
 weighted average shares outstanding for the comparable period last year.
     Revenues from Operating Specialties for the quarter ended March 31, 2001,
 rose 36.2 percent over last year's results; Finance and Accounting decreased
 2.0 percent; and Information Technology declined 9.5 percent.  Overall flex
 revenues increased 6.0 percent and search revenues declined 27.2 percent.
     David Dunkel, president and chief executive officer of Kforce, said, "One
 of the Company's key strengths is its diverse business lines and time-
 offerings, which helped Kforce report positive earnings results for the
 quarter in a difficult economic environment.  Significant revenue increases in
 our Operating Specialties, particularly healthcare, pharmaceutical and
 scientific, contributed to our success this past quarter.  We will continue to
 place emphasis on our Operating Specialties and our flexible staffing business
 which we believe may partially offset the downward trend in permanent
 placement."
     William Sanders, the Company's chief financial officer, added,
 "Improvements to our back office operations in 2000 have helped us manage the
 business more proactively.  This and other initiatives have assisted our
 efforts to lower SG&A and more effectively align expenses with revenues.  This
 was particularly beneficial this past quarter with two days of billing loss
 attributed to extreme weather in the Northeast and one fewer billing day in
 February than last year due to the 2000 Leap Year calendar."
     Dunkel noted that, beginning with this quarter, results from Human
 Resources will be reported as a part of Information Technology.  He also noted
 that Kforce Consulting, the Company's solution offering, ceased operations
 with the remaining activities being integrated into Information Technologies.
     For additional information on Kforce, please see our 10-Q and 10-K filings
 with the SEC.  On April 25, 2001, Kforce will host a conference call and
 webcast to discuss first quarter 2001 results and elaborate on topics
 addressed in this press release.  We encourage interested parties to listen to
 the call.  The call will begin at 11:00 a.m. EDT and will be webcast live at
 www.kforce.com (select "About Us") or www.streetfusion.com and will be
 available for replay until May 25, 2001.  (Please allow time to download and
 prepare your system to participate in the webcast.  Visit www.realplayer.com
 to download the free software.)  The replay of the call will also be available
 through May 2, 2001, by dialing 1-800-964-3648 or for international access by
 dialing 1-402-998-0990.
 
     About Kforce
     Kforce (Nasdaq:   KFRC) is a full-service, professional staffing firm
 providing flexible and permanent staffing solutions for organizations and
 career management for individuals in the specialty skill areas of information
 technology, finance & accounting, human resources, engineering,
 pharmaceutical, healthcare, legal and scientific.  Backed by nearly 2000
 staffing specialists, Kforce operates in more than 40 markets in North
 America.  For more information, please visit our Web site at www.kforce.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 Operating Specialties, flexible staffing and permanent placement
 services; market acceptance of the Company's e-business initiative; changes in
 the service mix; ability of the Company to complete acquisitions; and the risk
 factors listed from time to time in the Company's reports filed with the
 Securities and Exchange Commission, as well as assumptions regarding the
 Foregoing.  The words "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 Company undertakes no obligation to publicly
 update or revise any forward-looking statement.  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.com, Inc.
                               Summary of Operations
                                 (000s OMITTED)
 
                                               Quarter Ended
                                      March 31,   March 31,   December 31,
                                       2001          2000        2000
                                                 (Unaudited)
     Revenue by Function:
       Finance/Accounting             $56,125      $57,269     $56,086
       Information Tech.              103,205      114,092     115,617
       Operating Specialties           32,290       23,702      28,377
     Total Revenue                    191,620      195,063     200,080
 
     Revenue by Time:
       Perm                            33,034       45,395      40,084
       Flexible                       158,586      149,668     159,996
     Total Revenue                    191,620      195,063     200,080
 
     Cost Of Sales                    111,520      106,862     111,970
     Gross Profit                      80,100       88,201      88,110
       GP %                             41.8%        45.2%       44.0%
 
     Selling, General & Admin.         68,961       89,310      78,376
     Deprec. & Amort.                   3,990        3,704       6,960
 
     Income from Operations             7,149       (4,813)      2,773
 
     Other Income                      (2,141)         683        (919)
 
     Earnings Before Taxes              5,008       (4,130)      1,855
 
     Income Tax Expense (Benefit)       2,167       (1,735)      1,845
 
     Net Income (Loss)                 $2,841      $(2,395)        $10
 
     Earnings (Loss) Per Share          $0.09       $(0.05)      $0.00
     EBITDA Per Share                   $0.31       $(0.01)      $0.22
     Shares Outstanding - Diluted      32,761       44,182      39,466
 
     Selected Cash Flow
      Information:
     Depreciation and
      Amortization                     $3,990       $3,704      $6,960
     Change in Allowance - A/R           $872         $705      $1,106
     Capital Expenditures              $3,556       $1,114      $3,846
     Acquisition Payments                $---       $1,155        $---
 
     Selected Balance Sheet
      Information:
     Total Cash and Cash
      Equivalents                      $3,333       $1,808      $1,865
     Accounts Receivable,
      less allowances                $116,231     $131,746    $125,931
     Total Assets                    $269,449     $309,003    $282,937
     Current Liabilities              $62,413      $62,162     $65,517
     Long-Term Liabilities            $47,811      $30,910     $62,403
     Total Stockholders' Equity      $159,224     $215,931    $155,017
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X06787187
 
 SOURCE  Kforce.com, Inc.