Cover
Cover - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-26058 | |
Entity Registrant Name | Kforce Inc | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3264661 | |
Entity Address, Address Line One | 1150 Assembly Drive, Suite 500 | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33607 | |
City Area Code | 813 | |
Local Phone Number | 552-5000 | |
Title of 12(b) Security | Common Stock, $0.01 per share | |
Trading Symbol | KFRC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 19,491 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000930420 | |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 351,889 | $ 405,997 |
Direct costs | 256,639 | 292,021 |
Gross profit | 95,250 | 113,976 |
Selling, general and administrative expenses | 78,190 | 89,339 |
Depreciation and amortization | 1,333 | 1,234 |
Income from operations | 15,727 | 23,403 |
Other expense, net | 656 | 1,045 |
Income from operations, before income taxes | 15,071 | 22,358 |
Income tax expense | 4,084 | 6,148 |
Net income | $ 10,987 | $ 16,210 |
Earnings per share – basic (in dollars per share) | $ 0.59 | $ 0.83 |
Earnings per share - diluted (in dollars per share) | $ 0.58 | $ 0.82 |
Weighted average shares outstanding – basic (in shares) | 18,726 | 19,455 |
Weighted average shares outstanding – diluted (in shares) | 18,932 | 19,667 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 106 | $ 119 |
Trade receivables, net of allowances of $1,670 and $1,643, respectively | 236,923 | 233,428 |
Prepaid expenses and other current assets | 9,146 | 10,912 |
Total current assets | 246,175 | 244,459 |
Fixed assets, net | 8,936 | 9,418 |
Other assets, net | 82,800 | 75,924 |
Deferred tax assets, net | 3,382 | 3,138 |
Goodwill | 25,040 | 25,040 |
Total assets | 366,333 | 357,979 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 59,415 | 64,795 |
Accrued payroll costs | 39,746 | 33,968 |
Current portion of operating lease liabilities | 3,423 | 3,589 |
Income taxes payable | 3,520 | 623 |
Total current liabilities | 106,104 | 102,975 |
Long-term debt – credit facility | 40,800 | 41,600 |
Other long-term liabilities | 54,924 | 54,324 |
Total liabilities | 201,828 | 198,899 |
Commitments and contingencies (Note J) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 15,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.00 par value; 250,000 shares authorized, 73,455 and 73,462 issued, respectively | 735 | 734 |
Additional paid-in capital | 531,226 | 527,288 |
Retained earnings | 528,795 | 525,222 |
Treasury stock, at cost; 53,968 and 53,941 shares, respectively | (896,251) | (894,164) |
Total stockholders’ equity | 164,505 | 159,080 |
Total liabilities and stockholders’ equity | $ 366,333 | $ 357,979 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 1,670 | $ 1,643 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 73,455,000 | 73,462,000 |
Treasury stock, shares (in shares) | 53,968,000 | 53,941,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 73,242 | |||||
Beginning of period at Dec. 31, 2022 | $ 182,198 | $ 732 | $ 507,734 | $ 6 | $ 492,764 | $ (819,038) |
Beginning of period (in shares) at Dec. 31, 2022 | 52,744 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 16,210 | 16,210 | ||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | (5) | |||||
Issuance for stock-based compensation and dividends, net of forfeitures | (1) | 340 | (341) | |||
Stock-based compensation expense | 4,326 | 4,326 | ||||
Employee stock purchase plan (in shares) | (5) | |||||
Employee stock purchase plan | 245 | 172 | $ 73 | |||
Dividends | (7,003) | (7,003) | ||||
Repurchases of common stock (in shares) | 181 | |||||
Repurchases of common stock | (10,244) | $ (10,244) | ||||
Other | (6) | (6) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 73,247 | |||||
End of period at Mar. 31, 2023 | $ 185,725 | $ 732 | 512,572 | 0 | 501,630 | $ (829,209) |
End of period (in shares) at Mar. 31, 2023 | 52,920 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share (in dollars per share) | $ 0.36 | |||||
Beginning balance (in shares) | 73,247 | |||||
Beginning balance (in shares) | 73,462 | |||||
Beginning of period at Dec. 31, 2023 | $ 159,080 | $ 734 | 527,288 | 0 | 525,222 | $ (894,164) |
Beginning of period (in shares) at Dec. 31, 2023 | 53,941 | 53,941 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 10,987 | 10,987 | ||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | (7) | |||||
Issuance for stock-based compensation and dividends, net of forfeitures | 0 | $ 1 | 285 | (286) | ||
Stock-based compensation expense | 3,501 | 3,501 | ||||
Employee stock purchase plan (in shares) | (3) | |||||
Employee stock purchase plan | 204 | 152 | $ 52 | |||
Dividends | (7,128) | (7,128) | ||||
Repurchases of common stock (in shares) | 30 | |||||
Repurchases of common stock | (2,139) | $ (2,139) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 73,455 | |||||
End of period at Mar. 31, 2024 | $ 164,505 | $ 735 | $ 531,226 | $ 0 | $ 528,795 | $ (896,251) |
End of period (in shares) at Mar. 31, 2024 | 53,968 | 53,968 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share (in dollars per share) | $ 0.38 | |||||
Beginning balance (in shares) | 73,455 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend (in dollars per share) | $ 0.38 | $ 0.36 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 10,987 | $ 16,210 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Deferred income tax provision, net | (244) | 1,301 |
Provision for credit losses | (40) | 371 |
Depreciation and amortization | 1,333 | 1,234 |
Stock-based compensation expense | 3,501 | 4,326 |
Noncash lease expense | 938 | 1,130 |
Loss on equity method investment | 0 | 750 |
Other | 404 | 50 |
(Increase) decrease in operating assets | ||
Trade receivables, net | (3,456) | 2,601 |
Other assets | (608) | 243 |
Increase (decrease) in operating liabilities | ||
Accrued payroll costs | 5,982 | (1,230) |
Other liabilities | (5,628) | (7,930) |
Cash provided by operating activities | 13,169 | 19,056 |
Cash flows from investing activities: | ||
Capital expenditures | (1,875) | (1,872) |
Payment to Acquire Life Insurance Policy, Investing Activities | 529 | 0 |
Proceeds from the sale of our joint venture interest | 0 | 5,059 |
Note receivable issued to our joint venture | 0 | (750) |
Cash (used in) provided by investing activities | (2,404) | 2,437 |
Cash flows from financing activities: | ||
Proceeds from credit facility | 107,600 | 174,200 |
Payments on credit facility | (108,400) | (177,500) |
Repurchases of common stock | (2,848) | (11,126) |
Cash dividends | (7,128) | (7,003) |
Other | (2) | (14) |
Cash used in financing activities | (10,778) | (21,443) |
Change in cash and cash equivalents | (13) | 50 |
Cash and cash equivalents, beginning of period | 119 | 121 |
Cash and cash equivalents, end of period | 106 | 171 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes | 300 | 5,108 |
Operating lease liabilities | 1,297 | 1,303 |
Interest, net | 614 | 248 |
Non-Cash Investing and Financing Transactions: | ||
ROU assets obtained from operating leases | 1,152 | 566 |
Employee stock purchase plan | 204 | 245 |
Unsettled repurchases of common stock | 200 | 0 |
Equipment and software additions included in accounts payable and other accrued liabilities | $ 181 | $ 957 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A - Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of our 2023 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023, was derived from our audited Consolidated Balance Sheet as of December 31, 2023, as presented in our 2023 Annual Report on Form 10-K. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and changes in holiday and vacation days taken. In addition, we typically experience higher costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which adversely affects our gross profit and overall profitability relative to the remainder of the fiscal year. As such, the results of operations for any interim period may be impacted by these factors, among others, and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” the “Firm,” “management,” “we,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Therefore, our accounting estimates and assumptions might change materially in future periods. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities, such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the three months ended March 31, 2024 and 2023, 206 thousand and 212 thousand common stock equivalents were included in the diluted WASO, respectively. For the three months ended March 31, 2024 and 2023, there were 1 thousand and 264 thousand anti-dilutive common stock equivalents, respectively. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note B - Reportable Segments The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended March 31, 2024 Revenue $ 322,084 $ 29,805 $ 351,889 Gross profit $ 84,037 $ 11,213 $ 95,250 Operating and other expenses $ 80,179 Income from operations, before income taxes $ 15,071 2023 Revenue $ 364,844 $ 41,153 $ 405,997 Gross profit $ 98,411 $ 15,565 $ 113,976 Operating and other expenses $ 91,618 Income from operations, before income taxes $ 22,358 |
Disaggregation of Revenue
Disaggregation of Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Note C - Disaggregation of Revenue The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended March 31, 2024 Revenue by type: Flex revenue $ 318,514 $ 26,210 $ 344,724 Direct Hire revenue 3,570 3,595 7,165 Total Revenue $ 322,084 $ 29,805 $ 351,889 2023 Revenue by type: Flex revenue $ 359,524 $ 36,008 $ 395,532 Direct Hire revenue 5,320 5,145 10,465 Total Revenue $ 364,844 $ 41,153 $ 405,997 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Note D - Allowance for Credit Losses The following table presents the activity within the allowance for credit losses on trade receivables for the three months ended March 31, 2024 (in thousands): Allowance for credit losses, January 1, 2024 $ 1,106 Current period provision (40) Write-offs charged against the allowance, net of recoveries of amounts previously written off (61) Allowance for credit losses, March 31, 2024 $ 1,005 The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.7 million and $0.5 million at March 31, 2024 and December 31, 2023, respectively, for reserves unrelated to credit losses. |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | Note E - Other Assets, Net Other assets, net consisted of the following (in thousands): March 31, 2024 December 31, 2023 Assets held in Rabbi Trust $ 44,025 $ 40,389 Capitalized software, net (1) 20,620 16,434 ROU assets for operating leases, net 14,504 14,368 Deferred loan costs, net 598 658 Other non-current assets 3,053 4,075 Total Other assets, net $ 82,800 $ 75,924 (1) Accumulated amortization of capitalized software was $39.6 million and $37.6 million as of March 31, 2024 and December 31, 2023, respectively. |
Current Liabilities
Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Current Liabilities | Note F - Current Liabilities The following table provides information on certain current liabilities (in thousands): March 31, 2024 December 31, 2023 Accounts payable and other accrued liabilities: Accounts payable $ 43,202 $ 42,842 Deferred compensation payable 6,746 5,927 Accrued liabilities 5,691 8,699 Customer rebates payable 3,776 7,327 Total Accounts payable and other accrued liabilities $ 59,415 $ 64,795 Accrued payroll costs: Payroll and benefits $ 31,075 $ 28,110 Payroll taxes 4,329 1,705 Health insurance liabilities 3,809 3,727 Workers’ compensation liabilities 533 426 Total Accrued payroll costs $ 39,746 $ 33,968 |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Credit Facility | Note G - Credit Facility On October 20, 2021, the Firm entered into an amended and restated credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, BMO Harris Bank, N.A., as documentation agent, and the lenders referred to therein (the “Amended and Restated Credit Facility”). Under the Amended and Restated Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million. The maturity date of the Amended and Restated Credit Facility is October 20, 2026. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Note H - Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Deferred compensation payable $ 42,519 $ 42,025 Operating lease liabilities 12,383 12,275 Other long-term liabilities 22 24 Total Other long-term liabilities $ 54,924 $ 54,324 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Note I - Stock-based Compensation The following table presents the restricted stock activity for the three months ended March 31, 2024 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2023 798 $ 60.80 Granted 5 $ 60.01 Forfeited (12) $ 51.32 Vested (6) $ 23.80 $ 437 Outstanding at March 31, 2024 785 $ 61.24 As of March 31, 2024, total unrecognized stock-based compensation expense related to restricted stock was $38.1 million, which is expected to be recognized over a weighted-average remaining period of 4.1 years. During the three months ended March 31, 2024 and 2023, stock-based compensation expense was $3.5 million and $4.3 million, respectively, and is included in Selling, general and administrative expenses (“SG&A”) in the Unaudited Condensed Consolidated Statements of Operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note J - Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for certain post-employment benefits under certain circumstances. At March 31, 2024, our liability would be approximately $30.4 million if, following a change in control, all of the executives under contract were terminated without cause by the employer or if the executives resigned for good reason, and $11.5 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation We are involved in legal proceedings, claims, and administrative matters that arise in the ordinary course of business, and we have made accruals with respect to certain of these matters, where appropriate, that are reflected in our consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. The outcome of any litigation is inherently uncertain, but we do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our consolidated financial statements; however, if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to additional liabilities that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance that insures us against workers’ compensation, personal and bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 10,987 | $ 16,210 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023, was derived from our audited Consolidated Balance Sheet as of December 31, 2023, as presented in our 2023 Annual Report on Form 10-K. |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Therefore, our accounting estimates and assumptions might change materially in future periods. |
Earnings per Share | Earnings per Share |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operations of Reportable Segments | The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended March 31, 2024 Revenue $ 322,084 $ 29,805 $ 351,889 Gross profit $ 84,037 $ 11,213 $ 95,250 Operating and other expenses $ 80,179 Income from operations, before income taxes $ 15,071 2023 Revenue $ 364,844 $ 41,153 $ 405,997 Gross profit $ 98,411 $ 15,565 $ 113,976 Operating and other expenses $ 91,618 Income from operations, before income taxes $ 22,358 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended March 31, 2024 Revenue by type: Flex revenue $ 318,514 $ 26,210 $ 344,724 Direct Hire revenue 3,570 3,595 7,165 Total Revenue $ 322,084 $ 29,805 $ 351,889 2023 Revenue by type: Flex revenue $ 359,524 $ 36,008 $ 395,532 Direct Hire revenue 5,320 5,145 10,465 Total Revenue $ 364,844 $ 41,153 $ 405,997 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses | The following table presents the activity within the allowance for credit losses on trade receivables for the three months ended March 31, 2024 (in thousands): Allowance for credit losses, January 1, 2024 $ 1,106 Current period provision (40) Write-offs charged against the allowance, net of recoveries of amounts previously written off (61) Allowance for credit losses, March 31, 2024 $ 1,005 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following (in thousands): March 31, 2024 December 31, 2023 Assets held in Rabbi Trust $ 44,025 $ 40,389 Capitalized software, net (1) 20,620 16,434 ROU assets for operating leases, net 14,504 14,368 Deferred loan costs, net 598 658 Other non-current assets 3,053 4,075 Total Other assets, net $ 82,800 $ 75,924 (1) Accumulated amortization of capitalized software was $39.6 million and $37.6 million as of March 31, 2024 and December 31, 2023, respectively. |
Current Liabilities (Tables)
Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table provides information on certain current liabilities (in thousands): March 31, 2024 December 31, 2023 Accounts payable and other accrued liabilities: Accounts payable $ 43,202 $ 42,842 Deferred compensation payable 6,746 5,927 Accrued liabilities 5,691 8,699 Customer rebates payable 3,776 7,327 Total Accounts payable and other accrued liabilities $ 59,415 $ 64,795 Accrued payroll costs: Payroll and benefits $ 31,075 $ 28,110 Payroll taxes 4,329 1,705 Health insurance liabilities 3,809 3,727 Workers’ compensation liabilities 533 426 Total Accrued payroll costs $ 39,746 $ 33,968 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Deferred compensation payable $ 42,519 $ 42,025 Operating lease liabilities 12,383 12,275 Other long-term liabilities 22 24 Total Other long-term liabilities $ 54,924 $ 54,324 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | The following table presents the restricted stock activity for the three months ended March 31, 2024 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2023 798 $ 60.80 Granted 5 $ 60.01 Forfeited (12) $ 51.32 Vested (6) $ 23.80 $ 437 Outstanding at March 31, 2024 785 $ 61.24 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||
Common stock equivalents (in shares) | 206 | 212 |
Anti-dilutive common stock equivalents (in shares) | 1 | 264 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Operations of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 351,889 | $ 405,997 |
Gross profit | 95,250 | 113,976 |
Operating and other expenses | 80,179 | 91,618 |
Income from operations, before income taxes | 15,071 | 22,358 |
Technology | ||
Segment Reporting Information [Line Items] | ||
Revenue | 322,084 | 364,844 |
Gross profit | 84,037 | 98,411 |
FA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 29,805 | 41,153 |
Gross profit | $ 11,213 | $ 15,565 |
Disaggregation of Revenue - Sch
Disaggregation of Revenue - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 351,889 | $ 405,997 |
Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 344,724 | 395,532 |
Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 7,165 | 10,465 |
Technology | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 322,084 | 364,844 |
Technology | Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 318,514 | 359,524 |
Technology | Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 3,570 | 5,320 |
FA | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 29,805 | 41,153 |
FA | Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 26,210 | 36,008 |
FA | Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 3,595 | $ 5,145 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Schedule of Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning balance | $ 1,106 |
Current period provision | (40) |
Write-offs charged against the allowance, net of recoveries of amounts previously written off | (61) |
Allowance for credit losses, ending balance | $ 1,005 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Credit Loss [Abstract] | ||
Amount unrelated to trade receivables included in allowance | $ 0.7 | $ 0.5 |
Other Assets, Net - Schedule of
Other Assets, Net - Schedule of Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets held in Rabbi Trust | $ 44,025 | $ 40,389 |
ROU assets for operating leases, net | $ 14,504 | $ 14,368 |
Operating lease, right-of-use assets, financial statement location | Total Other assets, net | Total Other assets, net |
Capitalized software, net | $ 20,620 | $ 16,434 |
Deferred loan costs, net | 598 | 658 |
Other non-current assets | 3,053 | 4,075 |
Total Other assets, net | 82,800 | 75,924 |
Accumulated amortization of capitalized software | $ 39,600 | $ 37,600 |
Current Liabilities - Schedule
Current Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts payable and other accrued liabilities: | ||
Accounts payable | $ 43,202 | $ 42,842 |
Current deferred compensation liability | 6,746 | 5,927 |
Accrued liabilities | 5,691 | 8,699 |
Accrued Rebate Liability, Current | 3,776 | 7,327 |
Total Accounts payable and other accrued liabilities | 59,415 | 64,795 |
Accrued payroll costs: | ||
Payroll and benefits | 31,075 | 28,110 |
Payroll taxes | 4,329 | 1,705 |
Health insurance liabilities | 3,809 | 3,727 |
Workers’ compensation liabilities | 533 | 426 |
Total Accrued payroll costs | $ 39,746 | $ 33,968 |
Credit Facility (Details)
Credit Facility (Details) - Revolving Credit Facility - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Oct. 20, 2021 |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Long-term debt – credit facility | $ 40,800,000 | $ 41,600,000 | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Initial maximum borrowing capacity | $ 200,000,000 | ||
Accordion feature, increase limit | $ 150,000,000 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation payable | $ 42,519 | $ 42,025 |
Operating lease liabilities | $ 12,383 | $ 12,275 |
Operating lease liabilities, financial statement location | Total Other long-term liabilities | Total Other long-term liabilities |
Other long-term liabilities | $ 22 | $ 24 |
Total Other long-term liabilities | $ 54,924 | $ 54,324 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3.5 | $ 4.3 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expenses | $ 38.1 | |
Weighted average period expected to be recognized | 4 years 1 month 6 days |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Number of Restricted Stock | |
Outstanding, at beginning of period (in shares) | shares | 798 |
Granted (in shares) | shares | 5 |
Forfeited (in shares) | shares | (12) |
Vested (in shares) | shares | (6) |
Outstanding, at end of period (in shares) | shares | 785 |
Weighted-Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ / shares | $ 60.80 |
Granted (in dollars per share) | $ / shares | 60.01 |
Forfeited (in dollars per share) | $ / shares | 51.32 |
Vested (in dollars per share) | $ / shares | 23.80 |
Outstanding, as of end of period (in dollars per share) | $ / shares | $ 61.24 |
Total Intrinsic Value of Restricted Stock Vested | |
Vested | $ | $ 437 |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity - Schedule of Activity in the Accumulated Derivative Instrument Gain (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning of period | $ 159,080 | $ 185,725 | $ 182,198 |
End of period | $ 164,505 | $ 159,080 | $ 185,725 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Employees under contract terminated by employer without good cause or in absence of change in control | $ 30.4 |
Employees under contract terminated by employer without good cause or change in control | $ 11.5 |