Kforce Inc. (KFRC) has reported 61.70 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $5.90 million, or $0.23 a share in the quarter, compared with $3.65 million, or $0.14 a share for the same period last year. Revenue during the quarter grew 3.66 percent to $333.99 million from $322.20 million in the previous year period. Gross margin for the quarter contracted 108 basis points over the previous year period to 29.08 percent. Total expenses were 96.88 percent of quarterly revenues, down from 97.08 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 3.12 percent.
Operating income for the quarter was $10.41 million, compared with $9.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.56 million compared with $13.71 million in the prior year period. At the same time, adjusted EBITDA margin improved 10 basis points in the quarter to 4.36 percent from 4.26 percent in the last year period.
David L. Dunkel, chairman and chief executive officer, said, "We are pleased with the progress we have made to reaccelerate year-over-year revenue growth rates in each of our Flex businesses in the first quarter of 2017 compared to the fourth quarter of 2016. Our view of the strength of the demand environment within our lines of business, especially in Tech, has not changed. We believe the secular drivers of demand in Tech continue to intensify as companies increasingly look to technology to provide internal operating efficiencies, enhance competitive position and enable sustained market relevance in todays rapidly changing and evolving marketplace. Our focus continues to be on further accelerating our top line growth in an increasingly competitive market and making prudent investments in our business to generate long-term shareholder value."
For the second-quarter, Kforce Inc. expects revenue to be in the range of $342 million to $347 million. The company expects operating income to grow in the range of 5.70 percent to 6 percent for the second-quarter. The company projects diluted earnings per share to be in the range of $0.45 to $0.47 for the second-quarter.
Working capital increasesKforce Inc. has recorded an increase in the working capital over the last year. It stood at $159.40 million as at Mar. 31, 2017, up 16.76 percent or $22.88 million from $136.52 million on Mar. 31, 2016. Current ratio was at 2.93 as on Mar. 31, 2017, up from 2.53 on Mar. 31, 2016. Days sales outstanding were almost stable at 58 days for the quarter, when compared with the last year period.
Debt increases substantially
Kforce Inc. has witnessed an increase in total debt over the last one year. It stood at $135.70 million as on Mar. 31, 2017, up 26.82 percent or $28.70 million from $107 million on Mar. 31, 2016. Kforce Inc. has witnessed an increase in long-term debt over the last one year. Total debt was 34.88 percent of total assets as on Mar. 31, 2017, compared with 29.71 percent on Mar. 31, 2016. Debt to equity ratio was at 1.08 as on Mar. 31, 2017, up from 0.88 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
