8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

___________________________________________ 

FORM 8-K

 ___________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 5, 2024

 _________________________________________________________________

 

Kforce Inc.

Exact name of registrant as specified in its charter

_______________________________________________________________ 

 

Florida	000-26058	59-3264661
State or other jurisdiction of incorporation	Commission File Number	IRS Employer Identification No.

1150 Assembly Drive, Suite 500, Tampa, Florida 33607

Address of principal executive offices Zip Code

Registrant’s telephone number, including area code: (813) 552-5000 

_______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 per share	KFRC	NASDAQ

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On February 5, 2024, Kforce Inc. (the "Firm") issued a press release regarding its earnings for the fourth quarter ended December 31, 2023. A copy of this press release is furnished as Exhibit 99.1 to this Report and is incorporated into this Report by reference.

The information furnished herewith pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Form 8-K and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission by Kforce Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is furnished herewith:

Exhibit Number	Description
99.1	Press Release of Kforce Inc. dated February 5, 2024.
101	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104	The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.

 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		KFORCE INC.
		(Registrant)
Date:	February 5, 2024	By:	/s/ JEFFREY B. HACKMAN
			Jeffrey B. Hackman,
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

EX-99.1

Exhibit 99.1

KFORCE REPORTS FOURTH QUARTER 2023 REVENUE OF $363.4 MILLION AND EARNINGS PER SHARE OF $0.82

FULL YEAR 2023 EPS OF $3.13 PER SHARE, AS REPORTED, AND $3.49 PER SHARE, AS ADJUSTED

BOARD OF DIRECTORS APPROVES 5.5% INCREASE IN DIVIDEND AND INCREASES SHARE BUYBACK AUTHORIZATION TO $100 MILLION

TAMPA, FL, February 5, 2024 — Kforce Inc. (Nasdaq: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the fourth quarter and full year 2023. There are references to “as reported” and “as adjusted” figures within this press release, which pertain to GAAP and non-GAAP measures that are more fully described in the Adjusted Financial Performance Measures section of this press release.

Joseph J. Liberatore, President and Chief Executive Officer, commented, “I am tremendously grateful for the extraordinary efforts of the Kforce team who executed well in 2023 in an environment that proved to be more challenging than originally expected. Our strong execution and focused business model allowed us to deliver strong results while continuing to allocate significant capital towards strategic investments in our people and tools. As a result, we believe that we enter 2024 well positioned to take additional market share and create significant long-term returns for our shareholders. While clients have been acting with restraint over the last 12 plus months, the backlog of desired investments continues to grow. We expect these important technology investments to be high priorities once the macro uncertainties begin to clear. Our focus on growing our business organically with a consistent, refined business model tailored to providing highly skilled technology talent solutions to world-class companies has been critical to our success over many years, and we remain confident that our Firm is well placed for improving market conditions.”

Mr. Liberatore continued, “I want to reiterate how proud I am of the performance and resiliency of our collective Kforce team. Together, we fought through a challenging operating environment, made some difficult decisions and met each and every challenge. We are blessed to have a high performing team that is tenured, dedicated, and passionate.”

Fourth Quarter 2023 Financial Highlights

•Revenue for the quarter ended December 31, 2023 was $363.4 million compared to $419.7 million for the quarter ended December 31, 2022.

•Technology Flex revenue decreased 2.5% sequentially and 11.1% year-over-year, and increased 0.7% on a sequential billing day basis. FA Flex revenue decreased 1.0% sequentially and 28.0% year-over-year, and increased 2.3% on a sequential billing day basis.

•Flex gross profit margins of 25.7% decreased 20 basis points sequentially and 70 basis points year-over-year.

•Selling, general and administrative (“SG&A”) expenses as a percentage of revenue for the quarter ended December 31, 2023 was 21.0%, which decreased 150 basis points year-over-year. SG&A expenses as a percentage of revenue decreased 100 basis points year-over-year as adjusted for an impairment charge related to a previous joint venture for the quarter ended December 31, 2022 (“Impairment Charge”).

•Operating margins were 6.0% for the quarter ended December 31, 2023, which increased 30 basis points year-over-year. Operating margins decreased 20 basis points year-over-year as adjusted for the Impairment Charge.

•Diluted earnings per share for the quarter ended December 31, 2023 was $0.82 per share, an increase of 134.3% year-over-year. Diluted earnings per share decreased 11.8% year-over-year as adjusted for the Impairment Charge.

Full Year 2023 Financial Highlights

•Revenue for the year ended December 31, 2023 of $1.53 billion decreased 10.5% year-over-year (10.1% on a billing day basis).

•Technology revenue of $1.38 billion decreased 8.2% year-over-year (7.8% on a billing day basis).

•As reported, operating margins were 5.7% for the year ended December 31, 2023 which decreased 110 basis points year-over-year. As adjusted, operating margins of 6.2% for the year ended December 31, 2023 decreased 70 basis points from 6.9% for the year ended December 31, 2022.

•As reported, diluted earnings per share for the year ended December 31, 2023 were $3.13 per share, a decrease of 14.9% year-over-year. As adjusted, diluted earnings per share were $3.49 and $4.25 for the years ended December 31, 2023 and 2022, respectively, a decrease of 17.9%.

•We returned $94.7 million of capital to our shareholders through $67.1 million of share repurchases and $27.6 million in dividends during the year ended December 31, 2023, which exceeded 100% of operating cash flows.

Our Board of Directors (the “Board”) recently approved an increase of 5.5% in our annual dividend from $1.44 per share to $1.52 per share. The first quarter cash dividend of $0.38 per share will be payable on March 29, 2024, to shareholders of record as of the close of business on March 15, 2024. Additionally, the Board recently approved an increase in our stock repurchase authorization, bringing the total to $100 million.

First Quarter 2024 - Guidance

Looking forward to the first quarter of 2024, there will be 64 billing days compared to 61 billing days in the fourth quarter of 2023 and 64 billing days in the first quarter of 2023.

Current estimates for the first quarter of 2024 are:

•Revenue of $351 million to $359 million

•Earnings per share of $0.54 to $0.62

•Gross profit margin of 26.9% to 27.1%

•Flex gross profit margin of 25.4% to 25.6%

•SG&A expenses as a percent of revenue of 22.2% to 22.4%

•Operating margin of 4.2% to 4.6%

•WASO of 19.0 million

•Effective tax rate of 26.0%

Conference Call and Annual Meeting

On Monday, February 5, 2024, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (888) 550-5417 and the conference passcode is "Kforce." The prepared remarks for this call and webcast are available on the Investor Relations page of the Kforce Inc. website in the News and Events section. The replay of the call can be accessed at http://investor.kforce.com.

Our 2024 Annual Meeting of Kforce Inc. Shareholders will be held on Wednesday, April 24, 2024 at 1150 Assembly Drive, Suite 500, Tampa, Florida 33607, commencing at 8:00 a.m. E.T.

About Kforce Inc.

Kforce is a solutions firm specializing in technology and other professional staffing services. Each year, we provide career opportunities for over 20,000 highly skilled professionals on a temporary, consulting or direct-hire basis. These professionals work with approximately 2,500 clients, including a significant majority of the Fortune 500, helping them conquer challenges and meet their digital transformation goals. Together, we reimagine how business gets done. For more than 60 years, we’ve achieved our clients’ objectives by combining a KNOWLEDGEforce®—our namesake—with flexibility and an unmatched drive for excellence.

Michael R. Blackman, Chief Corporate Development Officer

(813) 552-2927

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding our positioning to take additional market share and create significant long-term returns for our shareholders, our focus on growing our business organically, our expectation for technology investments to be high priorities once the macro uncertainties begin to clear, and the Firm's guidance for the first quarter of 2024. 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 Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions; growth rate in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand; changes in client demand or our ability to adapt to such changes; a constraint in the supply of consultants and candidates or the Firm’s ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments or contracts, or funding under contracts; ability to comply with our obligations in a remote work environment; continued performance and security of and improvements to our enterprise information systems; impacts of actual or potential litigation or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm’s Form 10-K for the fiscal year ended December 31, 2022, as well as assumptions regarding the foregoing. The terms “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” ”plan” and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.

Kforce Inc.

Summary of Operations

(In Thousands, Except Per Share Amounts)

(Unaudited)

	Three Months Ended
	December 31, 2023		September 30, 2023		December 31, 2022
Revenue	$	363,447	$	373,122	$	419,662
Direct costs	264,084		269,661		300,183
Gross profit	99,363		103,461		119,479
Selling, general and administrative expenses	76,375		86,226		94,313
Depreciation and amortization	1,236		1,202		1,213
Income from operations	21,752		16,033		23,953
Other expense, net	332		181		14,756
Income from operations, before income taxes	21,420		15,852		9,197
Income tax expense	5,704		5,277		2,125
Net income	$	15,716	$	10,575	$	7,072
Earnings per share - diluted	$	0.82	$	0.54	$	0.35
Weighted average shares outstanding – diluted	19,194		19,518		20,077
Adjusted EBITDA	$	26,134	$	29,039	$	31,454
Billing days	61		63		61

Kforce Inc.

Summary of Operations

(In Thousands, Except Per Share Amounts)

(Unaudited)

	Year Ended December 31,
	2023		2022
Revenue	$	1,531,756	$	1,710,765
Direct costs	1,104,690		1,209,658
Gross profit	427,066		501,107
Selling, general and administrative expenses	334,933		379,815
Depreciation and amortization	5,012		4,427
Income from operations	87,121		116,865
Other expense, net	1,871		14,423
Income from operations, before income taxes	85,250		102,442
Income tax expense	24,175		27,011
Net income	$	61,075	$	75,431
Earnings per share - diluted	$	3.13	$	3.68
Weighted average shares outstanding – diluted	19,507		20,503
Adjusted EBITDA	$	115,718	$	140,871
Billing days	252		253

Kforce Inc.

Consolidated Balance Sheets

(In Thousands)

(Unaudited)

	December 31,
	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	119	$	121
Trade receivables, net of allowances	233,428		269,496
Prepaid expenses and other current assets	10,912		8,143
Total current assets	244,459		277,760
Fixed assets, net	9,418		8,647
Other assets, net	75,924		75,771
Deferred tax assets, net	3,138		4,786
Goodwill	25,040		25,040
Total assets	$	357,979	$	392,004
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	64,795	$	72,792
Accrued payroll costs	33,968		48,369
Current portion of operating lease liabilities	3,589		4,576
Income taxes payable	623		5,696
Total current liabilities	102,975		131,433
Long-term debt – credit facility	41,600		25,600
Other long-term liabilities	54,324		52,773
Total liabilities	198,899		209,806
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—
Common stock	734		732
Additional paid-in capital	527,288		507,734
Accumulated other comprehensive income	—		6
Retained earnings	525,222		492,764
Treasury stock, at cost	(894,164)		(819,038)
Total stockholders’ equity	159,080		182,198
Total liabilities and stockholders’ equity	$	357,979	$	392,004

Kforce Inc.

Key Statistics

(Unaudited)

	Q4 2023			Q3 2023			Q4 2022
Total Firm
Total Revenue (000's)	$	363,447		$	373,122		$	419,662
GP %	27.3		%	27.7		%	28.5		%
Flex revenue (000’s)	$	355,611		$	364,161		$	407,916
Hours (000’s)	4,208			4,279			4,958
Flex GP %	25.7		%	25.9		%	26.4		%
Direct Hire revenue (000’s)	$	7,836		$	8,961		$	11,746
Placements	378			431			532
Average fee	$	20,727		$	20,773		$	22,070
Billing days	61			63			61
Technology
Total Revenue (000's)	$	329,395		$	338,289		$	372,631
GP %	26.1		%	26.4		%	27.3		%
Flex revenue (000’s)	$	325,992		$	334,253		$	366,760
Hours (000’s)	3,628			3,690			4,072
Flex GP %	25.4		%	25.5		%	26.1		%
Direct Hire revenue (000’s)	$	3,403		$	4,036		$	5,871
Placements	179			199			235
Average fee	$	19,051		$	20,270		$	25,004
Finance and Accounting
Total Revenue (000's)	$	34,052		$	34,833		$	47,031
GP %	39.0		%	40.4		%	37.7		%
Flex revenue (000’s)	$	29,619		$	29,908		$	41,156
Hours (000’s)	580			589			886
Flex GP %	29.8		%	30.5		%	28.8		%
Direct Hire revenue (000’s)	$	4,433		$	4,925		$	5,875
Placements	199			232			297
Average fee	$	22,228		$	21,204		$	19,754

Kforce Inc.

Non-GAAP Financial Measures

(In Thousands, Except Per Share Amounts)

(Unaudited)

In addition to our financial results presented in accordance with GAAP, Kforce may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. Our non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. We view these non-GAAP financial measures as supplemental and they are not intended to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.

Revenue Growth Rates

“Revenue growth rates,” a non-GAAP financial measure, is defined by Kforce as year-over-year revenue growth after removing the impacts on reported revenues from the changes in the number of billing days. Management believes this data is particularly useful because it aids in evaluating revenue trends over time. Billing days impact is calculated by dividing each comparative period’s reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates the number of billing days for each reporting period based on the number of holidays and business days in the quarter.

	Year-Over-Year Growth Rates (As Reported)
	2023					2022
	YTD	Q4	Q3	Q2	Q1	Q4
Technology Flex	(7.4)%	(11.1)%	(12.5)%	(7.8)%	2.2%	8.5%
FA Flex	(27.6)%	(28.0)%	(26.9)%	(27.3)%	(28.2)%	(28.8)%
Total Flex revenue	(9.6)%	(12.8)%	(13.9)%	(9.8)%	(1.6)%	3.1%
	Year-Over-Year Growth Rates (As Adjusted)
	2023					2022
	YTD	Q4	Q3	Q2	Q1	Q4
Billing Days	252	61	63	64	64	61
Technology Flex	(7.1)%	(11.1)%	(11.1)%	(7.8)%	2.2%	8.5%
FA Flex	(27.3)%	(28.0)%	(25.7)%	(27.3)%	(28.2)%	(28.8)%
Total Flex revenue	(9.2)%	(12.8)%	(12.5)%	(9.8)%	(1.6)%	3.1%

Free Cash Flow

“Free Cash Flow,” a non-GAAP financial measure, is defined by Kforce as net cash provided by operating activities determined in accordance with GAAP, less capital expenditures. Management believes this provides an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and is useful information to investors as it provides a measure of the amount of cash generated from the business that can be used for strategic opportunities including investing in our business, repurchasing common stock, paying dividends or making acquisitions. Free Cash Flow is limited, however, because it does not represent the residual cash flow available for discretionary expenditures. Therefore, we believe it is important to view Free Cash Flow as a complement to (but not a replacement of) our consolidated statements of cash flows.

The following table presents Free Cash Flow (in thousands):

	Year Ended December 31,
	2023		2022
Net income	$	61,075	$	75,431
Non-cash provisions and other	30,713		50,294
Changes in operating assets/liabilities	(323)		(34,920)
Net cash provided by operating activities	91,465		90,805
Capital expenditures	(7,763)		(8,109)
Free cash flow	83,702		82,696
Change in debt	16,000		(74,400)
Repurchases of common stock	(75,024)		(74,913)
Cash dividends	(27,562)		(24,027)
Proceeds from the sale of our joint venture interest	5,059		—
(Premiums paid for) cash proceeds received from company-owned life insurance	(1,408)		1,077
Note receivable issued to our joint venture	(750)		(6,750)
Equity method investment	—		(500)
Other	(19)		(51)
Change in cash and cash equivalents	$	(2)	$	(96,868)

Adjusted Financial Performance Measures

The "Adjusted Financial Performance Measures" present non-GAAP financial information and should not be considered a measure of financial performance under generally accepted accounting principles. These measures are presented as an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of our underlying operations. Each of these measures are intended to provide greater consistency, comparability and clarity of our results. Management uses this non-GAAP financial information to assess the Company's core operating results and consequently, management believes it is similarly useful information to investors. During the three months ended December 31, 2023, the Firm did not have any adjusted financial performance measures.

	Year Ended December 31, 2023
(In Thousands, Except Per Share Amounts)	As Reported			Adjustments (1)			As Adjusted
Reconciliation of SG&A and Operating Margin:
Selling, general and administrative expenses	$	334,933		$	(8,397)		$	326,536
SG&A as a percentage of revenue	21.9		%	(0.5)		%	21.4		%
Income from operations	$	87,121		$	8,397		$	95,518
Operating margin	5.7		%	0.5		%	6.2		%
Reconciliation of Tax Impact and Profitability:
Income from operations, before income taxes	$	85,250		$	8,397		$	93,647
Income tax expense	$	24,175		$	1,464		$	25,639
Effective tax rate	28.4		%	17.4		%	27.4		%
Net income	$	61,075		$	6,933		$	68,008
Earnings per share - diluted	$	3.13		$	0.36		$	3.49

(1) Adjustments include $6.2 million related to organizational realignment and actions taken to reduce our structural costs, an increase to our legal reserves of $2.2 million, and the related tax impacts.

	Three Months Ended December 31, 2022
(In Thousands, Except Per Share Amounts)	As Reported			Adjustments (2)			As Adjusted
Reconciliation of SG&A and Operating Margin:
Selling, general and administrative expenses	$	94,313		$	(1,925)		$	92,388
SG&A as a percentage of revenue	22.5		%	(0.5)		%	22.0		%
Income from operations	$	23,953		$	1,925		$	25,878
Operating margin	5.7		%	0.5		%	6.2		%
Other expense, net	$	14,756		$	(13,684)		$	1,072
Reconciliation of Tax Impact and Profitability:
Income from operations, before income taxes	$	9,197		$	15,609		$	24,806
Income tax expense	$	2,125		$	4,002		$	6,127
Effective tax rate	23.1		%	25.6		%	24.7		%
Net income	$	7,072		$	11,607		$	18,679
Earnings per share - diluted	$	0.35		$	0.58		$	0.93

(2) Includes a $13.7 million impairment of our equity method investment and a $1.9 million reserve related to a promissory note issued to our joint venture and the related tax impacts for the three months and year ended December 31, 2022.

	Year Ended December 31, 2022
(In Thousands, Except Per Share Amounts)	As Reported			Adjustments (2)			As Adjusted
Reconciliation of SG&A and Operating Margin:
Selling, general and administrative expenses	$	379,815		$	(1,925)		$	377,890
SG&A as a percentage of revenue	22.2		%	(0.1)		%	22.1		%
Income from operations	$	116,865		$	1,925		$	118,790
Operating margin	6.8		%	0.1		%	6.9		%
Other expense, net	$	14,423		$	(13,684)		$	739
Reconciliation of Tax Impact and Profitability:
Income from operations, before income taxes	$	102,442		$	15,609		$	118,051
Income tax expense	$	27,011		$	4,002		$	31,013
Effective tax rate	26.4		%	25.6		%	26.3		%
Net income	$	75,431		$	11,607		$	87,038
Earnings per share - diluted	$	3.68		$	0.57		$	4.25

Adjusted EBITDA

“Adjusted EBITDA”, a non-GAAP financial measure, is defined by Kforce as net income before depreciation and amortization, stock-based compensation expense, interest expense (income), net, income tax expense, organizational realignment activities, legal settlement expense, loss from equity method investment, reserve associated with note receivable issued to our joint venture, impairment of equity method investment and gain from termination of interest rate swap. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows or other financial statement information presented in the consolidated financial statements as indicators of financial performance or liquidity. The measure is not determined in accordance with GAAP and is thus susceptible to varying calculations. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

In addition, although we excluded amortization of stock-based compensation expense because it is a non-cash expense, we expect to continue to incur stock-based compensation expense in the future and the associated stock issued may result in an increase in our outstanding shares of stock, which may result in the dilution of our shareholder ownership interest. We suggest that you evaluate these items and the potential risks of excluding such items when analyzing our financial position.

	Three Months Ended
(In Thousands)	December 31, 2023		September 30, 2023		December 31, 2022
Net income	$	15,716	$	10,575	$	7,072
Depreciation and amortization	1,236		1,202		1,213
Stock-based compensation expense	3,145		5,967		4,362
Interest expense (income), net	333		181		(15)
Income tax expense	5,704		5,277		2,125
Organizational realignment activities	—		3,662		—
Legal settlement expense	—		2,175		—
Loss from equity method investment	—		—		1,088
Reserve associated with note receivable issued to our joint venture	—		—		1,925
Impairment of equity method investment	—		—		13,684
Adjusted EBITDA	$	26,134	$	29,039	$	31,454

	Year Ended December 31,
(In Thousands)	2023		2022
Net income	$	61,075	$	75,431
Depreciation and amortization	5,012		4,427
Stock-based compensation expense	17,747		17,655
Interest expense, net	1,122		973
Income tax expense	24,175		27,011
Organizational realignment activities	3,662		—
Legal settlement expense	2,175		—
Loss from equity method investment	750		3,824
Reserve associated with note receivable issued to our joint venture	—		1,925
Impairment of equity method investment	—		13,684
Gain from termination of interest rate swap	—		(4,059)
Adjusted EBITDA	$	115,718	$	140,871

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Cover Page	Feb. 05, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 05, 2024
Entity Registrant Name	Kforce Inc
Entity Incorporation, State or Country Code	FL
Entity File Number	000-26058
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
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000930420