KFRC - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kforce Q4, 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today, David Dunkel, Chairman and CEO. ahead. go please you, Thank

David Dunkel

reports taken Good current afternoon. call including you this statements from to regarding and the COVID-XX health crisis. expectations would are contain certain like subject Kforce’s These actions benefits results may and from and materially vary listed forward-looking, We and based any to in impact, remind Actual to statements the cannot the with economic and duty upon any the that filings public and are Exchange Commission. other to opportunities and I related may assumptions that Securities forward-looking risks statements are and filings factors undertake uncertainties. statements. update

Release SEC and You our quarter’s find can information Earnings about filings. additional this our results in

remarks website. Investor our we portion Relations addition, our published have In within the prepared of

who respectively. through and pandemic extraordinary XXXX, we existing and on revenue a year-over-year grateful initiatives. business of year economic the Years notably, Responsibilities are backdrop, to and also made results solutions. early grew their to of as fourth it communities, adapted issues, Let focus proud not In their new through our experiencing leaders hearts Kforce serve and continued others with the market XX%, expectations financial with We Social situated, the our civil survived suddenness and great the each from all, Against lines exceeded The its a our significant. it cannot Kforce of threats in nation of over the dramatic in remarkable technology and year continued face are XXXX. back competitive persevered, difficult very approximately our by uncertainty carried share we also about considering for own challenges in now objectives their our talented we delivered others began XXXX. class overstated. earnings world growth have Full disruptors. all to to exceptional world endured, had X% and solve proud business. me achieved to day crisis. urgency team Reflecting pandemic a prosperity. and landscape. up share our at providing sacrifice has their sequentially. Corporate in only X%, incredible change it our and results some digitize we cases, wonderful about prospered. of found us the heroes of take but significant optimism of to is lives, questions disruption strategically preparation in technology XXXX by families people, our lives to effect their to of approximately basis, am per in entered efforts. some decisions it daily our on how and has operating models and revenues meet efforts heightened into I The regulatory Most business most and who across our the stepped been companies, technology of principally talent Followed only on COVID in dramatic quarter, pandemic social to businesses, were rapidly with critical other brings that and because fiscal despite our the down those We start of administration the Financially, communities helping commentary concerns year-over-year, personal and policies. we strategic billing be emerging change we have The this see Through X% and of and serve unrest adapted, very

and to workforce within operating refreshment welcome situation newest model required. activities also Kforce future Cloudman, our define continued the outstanding we are management XX the implementing flexible advanced continued Reimagined more we environment, member and initiative adapt hours, to we pleased significant to During governance our operationally a Board as entire and seamlessly the look work remote as work year, transitioned our Catherine talent made progress of as of relationship system. to our a our Board with Directors. From standpoint, We

gains firm. It’s ability to to position within execute the the be imperative heart strong rapidly environment of services excited companies that investment. trends believe a strategic are as solutions our professional continued our through technology will exponentially secular As very look our and we businesses, pandemic play and we for the has their we for to We digitize believe to XXXX, about what position a models Kforce services. demand productivity elevated belief macro technology drive the the and business transform and of and

we continue in will productivity, capital technology position solutions improving teams of have in market flexibility experience our The to grow to we the in a great business, managed success. receptivity We allocating capital to and deploy priority where and managed on place us continued how associate strength our and financial performance while tremendous allows our practice, especially future.

FA We analytics, toward support higher-end are for skillsets which decision are technology to more aligned and migrating business disciplines. certain closely our

internal flexible will ongoing post-pandemic, our of tools, available We many work investments also of positioning Firm our remote employees in-office utilizing have are blend by our environment a to technology and and that work. more have such a leveraging

in fully, will few office. physical will progress per expect We a during it result XXXX. that take smaller have made transition footprint fewer to Though, this and good years we offices a shift

and higher-quality We expect stream. more will these decisions that a result in profitable revenue

results safety performance, uncertain call give have, expectations over in times, Joe our operating to always we recent our manage operating to trends, to and trends. the determination and their know we drive President, and these into will continue greater associates resilience turn the financial a and who our Dave environment. for continue operating increasing give then well disciplined insights success are key will position, now and as other success, we to our will Joe? will the and the and that first of put expect They future health Through upon our to insights trying based manner, as we our as business first. and move our We as financial beyond current will Kelly, detail guidance CFO, quarter. through into situation. Liberatore, I on greater the

Joe Liberatore

personal and challenging to Dave backdrop. your you, tremendous interests thanks a and thanks all Kforcer first Kforce. made, sacrifices game XXXX, give results to a of for want delivering they’ve Thank for echo against comments in in sincere I elevating very and Dave’s their every the in

our our lines of basis, each grew especially year-over-year of total fourth where expectations across to in quarter, a As the exceeded growth revenues year-over-year technology resumed business, business X.X% a our basis. on on and revenues

each volume-driven line experienced have X% business. in our on were at noted, by you resulted our me accelerated third meaningfully and in year-over-year sequential the to X% early Let assignment With XX% quarter. we growth respect acceleration our XXXX. consultants are June Encouragingly, since of revenues as quarter, color on more from a give assignment increase Dave nearly almost the we technology meaningful of a the which fourth on increases increase consultants we sequential pace X%. growing grown primarily These in roughly business, little is as in the the

and These ends and as increase. of lowest solid the Job year lower assignment a trends have first We continued quarter experienced we assignment activity continued end are level as we into activity, order new assignment from have have levels of that on assignment to benefiting flow the combination ends. record. at well new of continued

fourth increased new sequentially assignment activity quarter. the In XX% in fact,

at remain orders levels job While pre-pandemic, lower continue they to increase. than

to due We as quality, continuing fill clients higher job also critical are to initiatives. significantly ratios technology executing an improved mix against higher are see of overall order

initiatives. in on the basis. projects industries. deferred reflective resilience in that Services of are or in may year-over-year multiple demand growth have and the experiencing Insurance Professional remains There strength growth securing shown broad key a the higher-end We stability. resources confidence IT We trends also Financial restarting across believe other growing the and delayed, while relative Insurance Services, Retail new Professional we for resources, shown and and scarcity are of been have have Services, experienced pandemic, sectors the experienced throughout industries, industry sequentially transformative

processes boundaryless last in initiatives a years we the the to frontend cloud, consumer three with focus clients and of with technology clients, digital the over and scale, strong diverse improving matured our in U.S. mobile, capabilities have data efficiently that experience. The analytics top see talent, technology highly cyber, made such environment across We in our critical continue have towards the as geared to acceleration within areas provide these investments at a

in our value, also solutions years, last three our differentiated to and the teams Over to we order significantly managed invested clients. capabilities provide a higher in offering have

to further due tremendous to We on services. in for it success our driving We this investments partnerships and help the long-standing have quality provided offering experiencing clients built solidify we we bringing of reputation making in our strong if business offering. this delivering have a relevant are intend in type help been this client engagement would the to in thought I capability XXXX. I

legacy with engagement client to that service first related The was a telecommunications infrastructure their offerings their their to customers. compromising end

to a a architecture cloud holistic needed and in partner implementation from expertise solution client to strategy deliver with implementation Our proven AWS.

development compliance responsible reporting. roadmap. future strategic a also and and data including defining responsible the We cloud implementation for a were architecture were cloud security, partner, native including and cloud As we state strategy for implementation

new pursuits complete monetization client and Our solution to flexible multi-tenant now on strategies data with is focus a capacity. able with

our to delivered deploying was the overall in and embarking over The We expanding strategy. its to schedule. offering integration Due build this and Kforce scrum as us to share. accelerating technology initially custom exceed able enhancements. in support engaged feel to confident than quickly application related part at recent continue this and a business four a application business client the greater were pace acquisition. digital that technology teams up market the has and second We to support new now positioning was a business. performance the ramp client outcome-based our a to legacy scalable solution successful of delivery our are take significantly engagement extremely targets application ability our Revenue the to with of healthcare a transformation partnership, greenfield

in in year-over-year first early be to quarter new to starts Thus, increase are expect revenues the technology As basis assignment quarter first business a on and on could continued year-over-year basis. up assignment have X% a strong. mid-single-digits trends, we our consultants on

the Moving important to approximately opportunities revenue up of result the COVID-XX from of were FA could of range as first quarter, we continued the expect a and our the fluid stream overall support level $XX business, revenues current fallout our to pandemic. These million $XX.X business. year-over-year of the in in to support range of $XX.X nearly our Flex million provide an information. $XX initiatives economic of fourth that tied to quarter, in to remains in FA COVID from primarily a the a revenues second revenue $XX have contribution and XX% to on quarter, million of million The flex be based government-sponsored

FA assignment by a on on XX% non-COVID sequential collectively grown business XX% since XXXX. year-over-year. declined We've Our consultants grew approximately Flex June basis our XX% and early

XXXX, automation do assignment we technology that client are ends roles footprint. change less relationships expect susceptible our As such in skilled business natural are more exist. Dave assignments efforts and intensifying decision-support not as to analytics of with where to synergistic more skilled technological lower FA migrate to that we our highly our and end, To and mentioned, towards roles FA experience strategic

and and be our to down to in declined sequentially quarter remains down COVID low revenues in XX% not revenues the part the to may fourth sequentially clients, investment be we with expect of increased down in important combined XX% economic the mid quarter on offering year-over-year. primarily mid-point its X% Flex We FA Direct an FA have though, on to the Direct with of the sequentially and allocated range. the a up When significant a consistent in high Hire mid-single-digits sensitivity approximately Hire fourth revenue, due year-over-year here of service range to total levels. cycles. our year-over-year digits basis single non-COVID

a revenues may the year-over-year Hire flat Direct be first quarter. roughly We expect basis on in

systems, to to our thus, seamlessly sustainable initiatives both continuing strategic profitable cloud-based growth. Microsoft are in are position invest us efficiencies. investments providing for significant product which TRM with These include of other and long We integrate offerings; Firm and our term, better CRM

lies our internal evolution Our integrated operating enhance online the and us the in hybrid candidates, interaction and model team of advanced position significantly the with a many consultants. what has of and These efforts other clients, flexibility of our to ahead. efforts fully maximum experience will also regardless team with

rates In that associates. take increase continued to XXXX. We due Overall to making capacity economic to productivity successful enablement of communication number are of remains so growth our in greater investments market investments for the and to work. should of the technology us expected fourth advantage associates to business, improve we are the manage and technology, transition of been sufficient tools selective this so in our quarter, continuing have in during support collaboration and above able and we to began processes acceleration our remote that the

as Our accelerated experience advantage in that be in competitive digitally and strongest we has in situated to ideally continue believe of to led result been recover we conditions cycles we the advantages and the recessionary believe an take market for companies, beyond. what are XXXX could expansion

in more result best leverageable positive reimagine the structurally as retained that and fixed our future. growth we refining expect as supported accelerates people, leverage we and reduced our will have model a costs, We are

be have and Dave? high. highest score clients We and technology now world-class per while placed most Kforce’s door a to I remarkable times. our from Our Glass an appreciate fully the a attitude and efforts our I and SIA. at executing over the and the our consultants carry trust candidates teams' customer call will I consultants, rating are clients, peers, all-time of firm in Kforce, capacity, consultants Kelly, net by these levels Officer. are prouder our greatly remote among employee the in through Dave Chief recognized achieved and satisfaction Financial turn managing couldn’t promoter

Dave Kelly

critical earnings exceeded team beginning but also XX.X%, basis business of well infrastructure, of our year-over-year. share valuable our X.X% quarter, extremely of core, $X.XX in our million per exceptional each and to the and and share $XXX of allowed outside to of a in $X.X performance, represent increases Driven of to respectively. day made difficult deliver results on this strengthening not year during revenues Thank execute The XX.X% of tech significantly year-over-year the $X.XX revenues Full very business of and of performance core pandemic. ability expectations by decisions billion you, to reflect continued year to our only a us Joe. quarter grew maintain per shareholders. pursue the strong billing Earnings fourth since our our

gross of points Our overall and lower quarter a direct in year-over-year profit decreased XX.X% stable XX hire basis of percentage gross as a was result mix in profit flex the sequentially, a and revenue margins. decrease

rates percentage The XX.X% healthcare impacts, impact sequentially business driver primarily business. hour the XX declined Flex FA due bill on to increased year-over-year. over Our margin XX margins declined of points XX nearly spread basis FA slight margins costs. Average basis of declined X% and in past points our per technology revenue flex points $XX year-over-year, was slightly our to lower decline due margin of higher XXX in year. profit compression nearly technology gross primary Flex have the basis usual and holiday basis in the the year-over-year. flex points COVID-XX to

highly the rate given and at As clients consultants highly of previously pandemic, the scarcity rates positively our FA in and has of onset bill generally bill of both assignment. per have were which more stated, revenues, overall our compensated Average since talent, COVID-XX the business, skilled $XX have of stable hour. overall exclusive retained generally we influenced length the

both in FA our we to As bill/pay relatively expect businesses stable. be and technology we rates QX, spreads look to bill forward and

and leverage our over carries bring solutions in a to business, spread longer term bill overall These higher competitive help higher profitability. continued rate, seeing environment, in projects and and and growth should higher the We create margins rate. increase margin stability are overall managed average an which teams rate

work slightly costs a will revenues. such flex first office resets. and significantly in in margins spreads, the seasonal by due QX the tax both overall revenue and management expense to SG&A year-over-year, positive stability relative quarter in impacted in basis to the lower we approximately travel due While of negatively tax by be as associate trends will on points as XXX to we basis solid quarter, of in embrace higher expenses Overall QX areas but points expect the to payroll primarily of percentage productivity, year SG&A improved XXX up as in continue expenses percentage, resets, be than lower payroll These by will terms pandemic. into be environment the and quarter terms due expenses. QX first percentage first dollars, from last brought will remote despite decreased

targets. operating lower which operating improved X.X%, profitability. the quality was improvements margin operating communicated improving quarter ongoing collectively margin and previously believe exceeded of drive continued costs revenue fourth Our again our stream, will We productivity once

XX our of from margins This raising approximately increase As is year full our we and are X% operating a margin operating of expectations. by X.X%. reflected points expectation prior in result, targets basis between XXXX

we XX.X%, benefit tax vesting was a in our result incentive of quarter was rate third effective of realized price. long-term in the awards anticipated lower stock the Kforce’s to The of incentive quarter. annually tax Our an the increase a which as due than fourth greater vest majority our awards long-term upon in

I’ll Next, full quarter a minutes $XX our million liquidity discussing for fourth cash Operating flows flows and greater position. million year. operating $XXX and few in than the cash the slightly spend were

deferral continued in under taxes for quarter, year million the in Act the nearly approximately the to payroll the of from to CARES bringing We $XX deferral $XX fourth the benefit total million.

with resulted the flows million cash us cash $X.X ending of operating end million $XX.X net of of versus strong at XXXX. XXXX net in Our debt

$XX roughly XXXX. through in We we to in of retiring in payments. to million in in repurchases returned XXXX, million million all share our $XX.X debt, and million addition in shareholders outstanding our dividend In generated EBITDA approximately capital $XX.X $XX

facility, and even extreme operate flexibility areas the and $XXX acquisitions as sheet resources while allocate debt-free returning ample provide organically grow to our Our to the investments flows, to in liquidity strong business. million shareholders, conditions, to make and also opportunistically to cash continuing revolving capital credit balance to such business,

X% bring continue As in trends of broader the first belief price uncertainty Directors our Board leads COVID-XX of the a going to our approved effective of quarter. guidance. signal our a dividend our strength increase dividend yield unpredictability in macro-economic will current XX% a our at operating and in stream us our continued of to This range XXXX, to current providing into levels. The revenue stock the our increase quarterly roughly

billing Our the fewer one one XXXX. quarter, than which more and days QX, day day XX QX, is are XXXX, days in in first

We approximately be XX.X%, $XXX million, million of are percent revenue to and between and expect expected be QX and be to are XX.X% to SG&A between $X.XX. earnings revenues outstanding to XX.X%, range to effective to be and of million and margins $X.XX X.X%. and operating shares while be margins tax Flex is share rate X.X% for be expected as a the XX.X%. and be average XX.X% between in to XX.X% XX.X per is between diluted $XXX are Gross XX%. anticipated the expected QX, margins and Weighted should expected between

impact government increase to impact or funding, are the As margins impacted the on on XX%. longer cases, our growth detail any earnings migration reflects are from year a and guidance due costs, profitability share related year our the declines pursuing demand consider significant matters, press charges understanding points, or business approximately to $X.XX. tax disruption towards in assist may also the of provided expectations or impacts To potential resets. tax revenues on revenue operating in our expectation to our of in approximately net full XXXX, of full costs negative change to per a release. or we for business basis course and legal strategic XXX legal COVID-XX Ranges FA no technology impact response pending information one-time not have sets. typically we due annual the revenue our end provided This any, first tax of our This Firm’s better by does by between effect, of in future that an if reflect revenue quarter X% the of law reminder, skill in This any to payroll impacts charges the from seasonal related higher unit over regulatory, any some changes. of how environment business

the COVID-XX also revenues, end in half provided year. expectations We our may up-to-date which the our have believe we most for currently first of

I of margins reflected In have operating earlier per resulting profitability, and terms share. improved the earnings we mentioned

very pleased continue with our believe We in are technology to that will demand resources strengthen. for and performance XXXX XXXX, in

enter and efforts. revenues is which revenue an our business society, evolves, complimenting XX% FA to directly of aspect technology, every that with mix expect and permeates business As focused our technology of in we focused on those XXXX

that a and outperform will armed market sustained have an technology-enabled operating we basis. model with them team to allow We a built exceptional believe, on us the

financial investment in position team bias critical extend I’d year management to company for every the of challenges thank a of the providing every in past we strong behalf to to and sincere like further the turn would now Our success. and our their to solutions of the entire you resources excel enable to call our will team, it ongoing Operator, for a success resounding industry. over like overcoming efforts making questions. in for and teams the On

Operator

Vogel ahead. comes the [Operator line from of our Sidoti sir. you, Please from I go Josh Company. first show Thank & Instructions] question

Josh Vogel

Thank taking evening, you. Good questions. guys. Thanks my for

in highly your us skill we remain before which reach bill about clients talked how XXs generally First we you Tech driven and for the know by the the are [ph] some more may was have you the rates Do Flex rates, and business still to see in mix thinking think prior upper of for amount year. I that one, the elevated retaining averages? bill That consultants. will long past. assignments

Joe Liberatore

Liberatore. were going. of pandemic it's of was already this that our and rates where accelerator focus of the business going in that an really nature with indicative seeing the of really after what bill strategic would two one, say, is is we Josh, you’re we’re the just Yes. work, I Joe that the things; coupled

bill near that’s foresee rates the going moving we start to term, don’t down. So, in anything

mean are So a not I rate bill rates areas. for inflated those artificially we are going standpoint, the skill from these

Dave Kelly

just I’ll made prepared said, because remarks. what Josh. in I Joe So, my emphasis a comment

services, businesses any that lower of activity as managed and be higher that rates, might grows here, is, expectation the one longer us. positive great that account So, term managed rates the effects a in carrying counter so is business to teams bill a bill our for the

Josh Vogel

makes teams Yes, from is the sense. practice? How revenue managed much and solutions coming

Joe Liberatore

we haven't out specifically. Yes, broke that

that is point future. will of become intent business, Our to we breaking meaningful the tech be serves our that rural more mix a some that out in at

Josh Vogel

Understood. that Shifting but gave SG&A gears forward about QX, the a office think we up know quarter-to-quarter? we down other I for a think paring run-rate little should from and bit it down or when physical footprint. levers guidance you can going about move how good

Dave Kelly

Josh, Dave this Kelly. is

improving the in we it. we expectations We've the an after is real which on give them, productivity, time previously for big that the that for years, we second led one had things. you see of you actually the a to idea gave investments made, benefits is full of this of us right, reason the also provided. profitability of been raise yielding years, Certainly, that is returns year incremental we a why two a part so estate expectations number part So number to across of

have operating between it to margins if that look we years, would that and the that provided X.X%, you X% that full if guidance, expectations would year, prior we mean been given XX at guidance for kind of I compare we had we the basis lower. points have you So had

number idea things also to think the having a estate continued that had are a in investments, profitability of But be make a and nice us. is because us, us, our going we're improvement. to technology we from perspective. lot certainly, impact opportunity reinvest sustained investment to returns here that travel, from sure give for critical operate there's enough ourselves positive we it's after of that continued for is we of how So want for driving here real like But a like different things the opportunity we business. We've

Josh Vogel

to right, going bill and migration the from one, Is that then All expect or in talking that business. in that hop to level great. just last inherently the going I'll back in increase should And completed the And XXXX? is complete see about queue, $XX efforts when FA an forward? rate be we

Joe Liberatore

the Yes, team work we the harder course the were as than the of skill really a hit XXXX. know efforts much as lower nice hit, that throughout skilled did all accelerated the our areas. lot areas of higher And pandemic

So we really in accelerated and QX, QX. our were that overall strategic we executing plan

continued XXXX, in lot that of of in a be So that alignment the us. certain behind work here through taking There'll course up is be will place ongoing ramping areas.

So what will anticipate would increase. that we over is gradually time bill rates

Josh Vogel

All thanks questions. taking my for right, great. Well,

David Dunkel

Josh. Thanks,

Operator

you. Thank

of from ahead. Our Please next Truist. question Tobey line comes go from the Sommer

Jasper Bibb

teams business kind your This be Bibb evening. to is managed Hey, good to you'd I capabilities consulting interested in of fuel for adding about on Jasper Toby. the growth wanted to ask there? what kinds of

Joe Liberatore

that table this business we looking marketplace. we remained build to. of we're two to then the Yes, if Because opportunities nature we and Obviously, we've at the need confident brought in are type cultural can and of portfolio the active are things that that's at. looking organically the paramount

an and we're So selective. of to very continue But we expertise. to so be pushing our do around don't really acquisition, of really a have that's to anything area work it clients going where digital, are our to in lot because

ran that we're really comments. to in as area I Data transformation, that the list for my well anything us practice in forward, important areas do digital So, opening going Big as as look we through laundry cloud, are

Jasper Bibb

respect kind the skilled lower the so timeline you today, of would is of moving versus repositioning that Thanks. And with then about percentage think just say kind just business of What business? FA of of kind higher to segment market. further that up we skilled can

Joe Liberatore

really I Today, speaking to many volume, due in historically, the it's before future for uniquely area lower service we've to of important skill. an years. mean, look I guess concentrated step we've back capability And recruitment centralized qualified our in and rate, to been kind bill high lower

to going to most areas that However, technology be over by going are skill advancements. time, be those are the ones impacted

So, and the support. the David our skill require as the I areas, intellect as more decision this from rebuild pandemic, analytics we in to mentioned, such as mentioned, really strategy emerge human

more customers will support higher believe our the areas strategic long-term, have. synergistic to and technology our with continue of with coupled we The relationship really they in volume advancements, certain through technology highly insulates this the that because are of footprint. need We business, us these from the disintermediation, just nature intellectual

postings in it this point XX% were would say I probably time. for of at about today, if So accounts we kind at total look our job to of

Jasper Bibb

great. the question. Okay, Thanks taking for

Joe Liberatore

Sure.

Operator

Thank you.

question Our Kusswurm comes go William from the of Please Blair. Samuel next line ahead. from

Samuel Kusswurm

mic right. everyone, through Hey, comes all

Joe Liberatore

Yes.

Dave Kelly

hear can you. we Sam, Sure. Yes

Samuel Kusswurm

Perfect.

FA benefited some last one from time Your business project large year.

curious if are of additional more or to in, is that stimulus passed, more of I'm there's type potential of government if a that come work opportunity? onetime think So packages for you

Joe Liberatore

back with a to We partners started half as contracts. last out These the received of and relationships, lot engaged standing through stating And long situation into unknowns of on we this opportunistic going they had the year. us reached downturn. were had had that

especially everything on how going in main supported to in really them knowing because not we domestic going at us. for likewise, lie for that ahead U.S. time work with two meaningful that point was, was the was drivers, So that of what And

more really as will viewed within tech that falls with we've replace off continually of that much overall business it's a And as us it quality as this come our basically plan. However, always, business, more out higher we strategic that to bridge. allow

FA, start intent XX%, XXXX, really to look we mix between of look just on out more is a type give XX% at our there. we pulse what to kind of you As tech and to

actively continuing out with call. on selectively to support we've doesn't to, strategies we're laid that we're that that out we've mean, I pursuing to more not business now, but on-board those the that of committed customers So this align

Samuel Kusswurm

Perfect. during That's ask wanted But there the there out expectations more any types growth switching has model in client successful helpful. it this if found service a driver then. gears specific I the if you period? are things, too? disruption or was project outperformed any then groups impacted or been it's wonder about Maybe a skill. I know solution to pandemic for years. little managed how bit I And

Joe Liberatore

Yes.

I'll end. areas on back have start mentioning the to we've that Those continued really accelerate. So been

everything off, initiatives that pandemic really that reasons. the increased seeing it digitization, what a of doesn't been what have has amount from where around say kicked in we solution doesn't The teams matter industry, pursuing and this from matter One, an for I'd company at standpoint were managed we're is. year. last we to accelerant So two point were

So more throughout the direction, so there's our it pushing the through the have had has seen to of some their in I responsibility really, area resources them played team, they've organization, actually route. clients rightsize through, really And have that second because going there need the every the versus would for seen dynamics more is a they're that have we pandemic, unfolded FTV flexible on-boarding pandemic. into that say especially burning

type for well also So teams that has and workforce. managed played solutions

Samuel Kusswurm

Okay. I appreciate the color guys.

Joe Liberatore

Sure.

Operator

Thank from you. I question comes Marcon ahead. go Mark the next Instructions] show of [Operator Please Baird. our from line

Mark Marcon

you’ve that that one really some good think Hey, been you the afternoon, not thanks just of talking made but, When and normal efficiency we regards the margin And given years, about really do and long-term, you’ve let’s Wondering, doing. am reduced six we to think long-term? a do have with lot a talked about think two for you five of progressing particularly, you How up that things cycle the that, I about and we structure how end -- through question. footprint? up we real-estate some years my taking out. going ends say up end comments

Joe Liberatore

think I peak say, going at recession, Yes, look look was in Dave. back. we crisis, those dotcom comparison tech that, or saw cycle I XXX recessionary we it's recession this margin financial into was to XXX what the of both about we If in step the jump trough points to basis a to to of deterioration at points. from where I’ll roughly important really standpoint, from we about experienced basis

deep. to say, hasn't it needless So as been

and couple that that we're so we environment. we that So profile overall teams historically that just the managed guess margin us with some the higher provides I -- do business demand I a of would optimistic what of And see means solutions the then, performed. in because

that opportunity margin become mix technology that if expansion. provide of overall So continues for this would to higher a continued business

Dave Kelly

said, this to would different, what Mark. I no Joe and is Yes, add

look gross to improvement as at talking points continue efficiencies that about we profitability marching continued margin technology operating has improve we've the from on. in this said right huge Joe’s line we to us, are opportunities the have But margin we grow what that we on at come that in think earlier. been I amount investments. business productivity that a journey been going And little a We mix and But the as a improve term to derive. longer becomes been bit that really, of for richer. by are

looking operating get any are in there's wouldn't operating digit as potentially clean said past, quarter I we X% nearly we've double target why in now, know impacted, So still positively larger, gross right and a margins don't reason as that the we're margins. margins, we

Mark Marcon

time side? sets. you FA focus higher a And Great. about this that? within that with about longer of How some end added would term some can how then the gross the the FA the think the And talk bit impacting little skill of on side we should up margins value

Joe Liberatore

basis. just you're much make a albeit on won't we to actual Mark? that are with probably translate as higher margin FA of sense, we at a move percentage up law if a Does It you're dynamics rate, to extent the look the numbers there. bill more gross an because of bill. with that higher It to food from chain the so standpoint dealing dollars, will one margin, right Yes, go dealing is

Mark Marcon

years And to that think regards surprise with that. we do when really to then, biggest much, when It be your aren't that when think, thinking going back you in we're on different? now be be going look to there's look really back, and aren't we're or we think future, four to to years that people that considering? five the that’s out five going business. about, emerging, Great. materially people think the you're Do totally is anything does. you that you from What like, about I doing we four the appreciate are things areas today,

Joe Liberatore

that saying be these we're to between analytic the execute will So that it's type to decision support the this probably, at years strategies four different and business it's, organizations provide going we day, the most also oriented in synergy be opportunities materially managed be be the solution five that end look point time, from value, ability it’s our going And those you’re sitting roles many technology it the some is areas organizations opportunity. into to of team sitting when is both they're of of now, instances units, because footprint in But we're within. synergistic grow still doing that just technology is of have provides finance, all centralized. decentralized, us of standpoint and mix really very to going or to back some not And that overall at within that work in that very other a they're with a have higher lot a solution how turnkey across operating from a material. and beginning our

Dave Kelly

the this rapid nobody pervasive disruptors of to challenge imagining analytics, midst with If you this different things Mark, something, a that years is And of to with digitization I is with of start just add gets race. technology weren't digital technology, wanted is business, Dave. thinking of how either now all of pass. the there's the we applications even about Things, we're facing a organization the think new arms anything, the when considering and you're robotics, I or every future, Internet in and of take their ago.

of an to So are it, decision well, to and nature what of we're competitive make now to the compelled cycle, applications they replace can in say, have it. they customer unlike going do because organization prior our do a just cycles, the facing not where

things likely today. that in thing is that's even business aspect going that to can't now, doing we been And things there'll very to is digitized there's future. everything, contemplate and But the clear doing we're one from consumer continue. underpinning today government, done So we're of that has the that be that's technology will to every won't be new life

margin at today, of higher XX% to we're in a It's now. with and We're XXX, and skilled when the to domestic Joe been they've growing. XXX So for the team operating increases to absolutely here. in great accomplished. the a this focus, where getting hats servicing right look technology plus be technology Dave, off is, exiting with We're what beautiful areas, we're in and position leadership Fortune our But right in time actually place our year, continuing. team is long thing being a the we Kforce

great spot. a we're So in actually

Mark Marcon

Great.

Joe Liberatore

with you many announcements, where recent with I'm and other a wellbeing, the learning, going areas saw on coaching, both employee if collaboration, Dave work. experience Salesforce dealing from Microsoft along support remote little is platforms around bit sure To piggyback there. not a

IT five we survey did years I think or out, remote four just when also, temporary of as in So workers it remain SIA XX% January. look was I January. a poll and mean, of

it said they think dollar what question the is new the post-pandemic. I like So best, trillion looks normal

remote heightened probability will persist future, across clearly, we're lot the proven our into work the So clients. seeing there's and success trends suggesting similar a levels of those of of

of technology in all into nature look years and how of we work the the what well for I as So businesses just that's as five those is support being to think infused done will continue evolve out, businesses.

Mark Marcon

point. Thank It’s you. great a

Joe Liberatore

Sure.

Dave Kelly

Thank Mark. you,

Operator

the questions turn time, queue. to I this you. I'd call the to and closing Dunkel, David CEO in At show Mr. remarks. over Thank Chairman for no like further back

David Dunkel

Great, thank you very much.

evening. your of interest our your Kforce and trust as efforts of exceptional for these as First with say our allowing continue the you you incredible their our and We We to to quarter. Lightning like field unprecedented Bucs you. with thank and every partnering to results with Kforce. we're beginning American and after in teams, we consultants times, And champs. us course, first And and talking League Thank Rays all, Tampa clients and delivered corporate persevere good each the of are excited of and about thank declare another the for again to of how and serving Titletown you just we for forward the to support excited the you look you much very are of member I'd privilege again quarter and and very to during XXXX.

Operator

participating. for Thank call. this gentlemen, conference you today's and concludes Ladies

You may disconnect. now

Kforce (KFRC) 9 Feb 212020 Q4 Earnings call transcript