Kforce Inc. (KFRC)
Q4 2009 Earnings Call
February 09, 2010; 05:00 pm ET
David Dunkel - Chairman & Chief Executive Officer
Bill Sanders - President
Joe Liberatore - Executive Vice President & Chief Financial Officer
Michael Blackman - Chief Corporate Development Officer
Tobey Sommer - SunTrust
Kelly Flynn - Credit Suisse
Mark Marcon - R.W. Baird
Josh Vogel - Sidoti & Co.
Jim Janesky - Stifel Nicolaus
Good day and welcome to the Kforce Inc. fourth quarter 2009 earnings conference call. Today's call is being recorded.
At this time I would like to turn the conference over to Michael Blackman, Chief Corporate Development Officer; please go ahead, sir.
Previous Statements by KFRC
» Kforce Inc. Q3 2009 Earnings Call Transcript
» Kforce, Inc. Q2 2009 Earnings Call Transcript
» Kforce Q1 2009 Earnings Call Transcript
These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially because of factors listed in Kforce's public filings and other reports and filings with the Securities and Exchange Commission. We cannot undertake any duty to update any forward-looking statements.
I would now like to turn this call over to David Dunkel, Chairman and Chief Executive Officer. Dave.
Thank you, Michael. You can find additional information about Kforce in our 10-Q, 10-K, and 8-K filing with the SEC. We provide substantial disclosure in our release and our hope is that this will improve the dissemination of information about our performance and the quality of this call.
We are very pleased with our firm’s performance in 2009, and it’s against the challenging and still somewhat uncertain economic environment. The objectives we had established at the beginning of the year that’s focused on markets and customer share gains, retaining our great people and maintaining positive cash flow are all achieved.
Our longer term strategies are also bearing significant fruit, including our national recruiting center, strategic accounts and the narrow focus on our full service offering of technology, finance and accounting, health and life sciences and government. Over the past year we doubled the size of the NRSC and strategic account teams and significantly increase the business development staff in KGS.
Additionally our infrastructure and technology investments provide a flexible and world class platform aimed driving productivity, streamlining our processes to gain efficiencies and increase operating leverage. These include business intelligences; people soft ERP, enhancements to our front end system, IP, Telectony, wireless offices and more.
We are leveraging our offshore capability in Manila for our back offices and NRC as well as for our clients, allowing us to gain efficiencies to benefit from the time zone difference. Our objectives for 2010 second year of our three year plan, of the further penetrating and existing strategic accounts, take additional customer share and selectively target new account for our service offerings and business model and add value to perspectives clients.
We believe the demand for our services is improving and together with the platform we have built, may fuel accelerated revenue and earnings growth as be recovery takes hold. We are pleased to have further reduced bank debt in the past quarter to a negligible $3 million, and anticipate using cash flow for continued debt retirement, share repurchase, and acquisitions that meet a very high hurdle.
There have been several recent transactions within the staffing industry and we are continuing to see opportunities presented to us, but are maintaining our discipline and standards. I’ll turn the call over to Bill Sanders, Kforce President, who will provide his comments, and then Joe Liberatore, Kforce CFO, who will provide additional insights on operating trends and expectations; and then we will open up the call to questions.
Thank you, Bill.
Thank you, Dave and thanks to all of you for your interest in Kforce. Before we did begin a detailed discussion of fourth quarter results, I wanted to take a moment to reflect at some of the key accomplishments of the past years. In the face of a very difficult operating environment, the great people of our firm continued to deliver exceptional results that have prepared us well to take advantage of the up cycle swing shot.
We are pleased that we were able to retain our field and corporate leaders, and note that the life blood of our firm, the percentage of sale of assumptions with greater than four years of experience is at an all time high. As a result we were able to take market share, minimize a deterioration of our revenue stream, and deliver consistently strong results to our shareholders.
Tech Flex in particularly outperformed throughout the year. Additionally, 2009 was a year of preparation, where we continue to build key differentiators such as our centralized national recruiting center, strategic accounts program and shared services platform, with significant investment in infrastructure and headcount. We believe the additional leverage we have developed, coupled with significant capacity and our existing sales force prepares us well to take advantage of this economic up turn.
Specifically with respect to fourth quarter results we are please with our revenue and earnings performance and in particular our ability to grow revenue on a billing-day basis. Our results are driven by the great people we have in our team, and the strong relationship and culture we have built.
We believe our operating platform and stable diversified portfolio of service offerings provides a strong foundation on which to perform in any economic environment. We are prepared for the economic up-cycle, and we believe the firm is positioned to obtain higher peak revenues and higher earnings levels.