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):             April 30, 2003                            

KFORCE INC.

(Exact Name of Registrant as Specified in Its Charter)

Florida

(State or Other Jurisdiction of Incorporation)

000-26058	59-3264661
(Commission File Number)	(IRS Employer Identification No.)
1001 East Palm Avenue, Tampa, Florida	33605
(Address of principal executive offices)	(Zip Code)

(813) 552-5000

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

            99.1     Press Release, dated April 30, 2003.

ITEM 9.     REGULATION FD DISCLOSURE

The information furnished under this “Item 9. Regulation FD Disclosure” is intended to be furnished under “Item 12. Results of Operations and Financial Condition” in accordance with SEC Release No. 33-8216.

On April 30, 2003, Kforce Inc. issued a press release announcing its results of operations for the quarter ended March 31, 2003. A copy of the press release is attached as Exhibit 99.1.

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: May 2, 2003	By:	/s/     David L. Dunkel
		David L. Dunkel
		Chief Executive Officer

EXHIBIT INDEX

Exhibit No.	Document Description
99.1	Press Release, dated April 30, 2003.

EX-99.1

Exhibit 99.1

	Kforce Inc.
	1001 East Palm Ave.
	Tampa, FL 33605
	(NASDAQ: KFRC)
AT THE COMPANY
Michael Blackman
Vice President – Investor Relations
(813) 552-2927
William L. Sanders
Chief Operating Officer/Chief Financial Officer
813-552-5000

KFORCE ANNOUNCES FIRST QUARTER RESULTS

REPORTS INCREASED EARNINGS AND REVENUE

TAMPA, FL – April 30, 2003 – Kforce Inc. (NASDAQ: KFRC), a professional staffing firm, announces results for the first quarter ended March 31, 2003. Revenue for the three-month period ended March 31, 2003 was $123.7 million compared to $123.5 million for the quarter ended December 31, 2002 and $131.7 million for the first quarter of 2002. The Company reported a profit for the first quarter of 2003 of $.3 million or $.01 per share versus losses in the first and fourth quarters of 2002. Overall revenues from flexible staffing assignments decreased 1.1% over the quarter ended December 31, 2002 and decreased 4.3% over the first quarter of 2002. Search revenues increased 21.6% over the quarter ended December 31, 2002 and decreased 24.6% over first quarter 2002.

“We are encouraged that for the first time since Q3 2000, overall revenues increased on a sequential basis. We are particularly pleased by our Finance/Accounting revenues which increased overall sequentially 8.2% with search and flex up sequentially 22% and 5.9% respectively compared with the fourth quarter of 2002. Our first quarter EPS of $.01 exceeded street expectations and, we believe, is indicative of our greatly enhanced operating leverage and ability to gain market share,” stated David L. Dunkel, Chairman and CEO. “We believe that Kforce is well positioned for continued future success as evidenced by our lower break-even threshold and conservative balance sheet. We remain focused on strengthening a Kforce culture built on exceptional service to our clients and a passionate commitment to performance, accountability and teamwork.”

Bill Sanders, the Company’s Chief Operating and Financial Officer, added, “We are continuing to see the fruits of the proactive steps that we have taken to drive revenue growth, gain market share and control expenses. In a continuing difficult economic environment, we further reduced operating expenses and Days Sales Outstanding (DSO’s) while growing the top-line on a

sequential basis. In addition, the productivity of our sales force continues to improve and is, we believe, another indicator of our operating leverage going forward. We maintain our long term commitment to achieving operational excellence and our determination to deliver exceptional customer service.”

Financial highlights for the first quarter include:

· Revenue of $123.7 million was the first sequential increase since Q3 2000

· EBITDA was $1.9 million

· Reduced operating expenses to $37.7 million, or 30.5% of revenue, the lowest level since 1997

· Search was $8.3 million in Q1, a 21.6% sequential increase over Q4 2002

· DSO is at the lowest levels ever. DSO decreased sequentially by 5.4 days to 33.1 days.

Mr. Sanders added, “For the second quarter 2003, we currently expect that revenue may be in the range of $123 – $127 million while earnings may be in the range of $.00 to $.03 per share. We believe the proactive measures we have taken have further strengthened both the financial and operating leverage of Kforce. In the face of an extremely difficult external environment, we believe we continue to make excellent progress in laying the groundwork for our future success.”

On April 30, 2003, Kforce will host a conference call to discuss these results. The call will begin at 11:00 a.m. ET. The dial-in number is 706-679-8240. Please state it is the Kforce call with Michael Blackman. It will also be Webcast live at www.kforce.com (select “Investor Relations”) or visiting http://www.firstcallevents.com/service/ajwz378778806gf12.html and will be available for Webcast replay until May 21, 2003. (Please allow time to download player software and prepare your system to participate in the Webcast. Player software is available on the firstcallevents.com site.) The replay of the call will also be available from 1:00 p.m. ET Wednesday, April 30 through May 2, 2003, by dialing 1-706-645-9291 and entering conference ID #9686812.

About Kforce

Kforce (NASDAQ: KFRC) is a professional staffing firm providing flexible and permanent staffing solutions for organizations in the skill areas of information technology, finance & accounting, pharmaceutical, healthcare and scientific. Backed by nearly 1,200 staffing specialists, Kforce operates in more than 40 markets in North America. For more information, please visit our Web site at www.kforce.com.

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. 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 Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the staffing industry and general economy; competitive factors, risks due to shifts in the market demand, including, without limitation, shifts in demand for our Health and Life Sciences, Finance and Accounting and Information Technology Groups, as well as the market for search and flexible staffing assignments; changes in the service mix; ability of the Company to complete acquisitions; and the risk factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission, as well as assumptions regarding the foregoing. In particular, any statement related to Kforce’s expected revenues in the second quarter or Kforce gaining market share are forward-looking statements. The words “should,” “believe,” “estimate,” “expect,” “intend,”

“anticipate,” “foresee,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. In particular, any statements related to future improved performance and estimates of first quarter revenues and earnings per share are forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

###

Kforce Inc.

Summary of Operations

(000’S OMITTED)

(Unaudited)

	Quarter Ended
	March 31,			December 31,			March 31,
	2003			2002			2002
Revenue by Function:
Information Tech.	$	54,992		$	55,651		$	56,849
Finance/Accounting		31,008			28,647			32,983
Health and Life Sciences		37,724			39,209			41,840
Total Revenue		123,724			123,507			131,672
Revenue by Time:
Perm		8,257			6,791			10,956
Flexible		115,467			116,716			120,716
Total Revenue		123,724			123,507			131,672
Cost Of Sales		85,307			84,681			87,901
Gross Profit		38,417			38,826			43,771
GP %		31.1	%		31.4	%		33.2	%
Flex GP%		26.1	%		27.4	%		27.2	%
Selling, General & Admin.		36,606			44,533			43,052
Deprec. & Amort.		1,102			2,016			2,724
Income (Loss) from Operations		709			(7,723	)		(2,005	)
Other Expense		(431	)		(1,676	)		(451	)
Earnings (Loss) Before Taxes		278			(9,399	)		(2,456	)
Income Tax (Benefit) Expense		(10	)		1,629			(860	)
Net Income (Loss) before Acctg Change		288			(11,028	)		(1,596	)
Change in Accounting Principle		—			(33,823	)		—
Net Income (Loss)	$	288		$	(44,851	)	$	(1,596	)
Earnings (Loss) Per Share—Diluted	$	0.01		$	(0.36	)	$	(0.05	)
Earnings (Loss) Per Share—Diluted
after Change in Accounting Principle	$	0.01		$	(1.45	)	$	(0.05	)
EBITDA Per Share	$	0.06		$	(0.22	)	$	0.03
Shares Outstanding—Diluted		30,603			30,947			31,835
Selected Cash Flow Information:
Depreciation and Amortization	$	1,102		$	2,016		$	2,724
Change in Allowance—A/R	$	(562	)	$	447		$	(1,322	)
Capital Expenditures	$	400		$	251		$	71
Selected Balance Sheet Information:
Total Cash and Cash Equivalents	$	1,803		$	1,053		$	1,279
Accounts Receivable, less allowance	$	65,651		$	63,092		$	71,868
Total Assets	$	156,288		$	152,178		$	215,725
Current Liabilities	$	40,338		$	36,666		$	40,813
Long-Term Liabilities	$	29,406		$	29,924		$	37,097
Total Stockholders’ Equity	$	86,544		$	85,588		$	137,815
Other Information:
Billing Days		63			62			63

Kforce Inc.

Key Statistics

(Unaudited)

	Q1 2003			Q4 2002			Q1 2002
Total Company
Flex Revenue (000’s)	$	115,467		$	116,716		$	120,716
Revenue per billing day (000’s)	$	1,833		$	1,882		$	1,916
Sequential Revenue Change		-1.1	%		-2.7	%		-0.8	%
Hours (000’s)		2,639			2,700			2,766
Flex GP %		26.1	%		27.4	%		27.2	%
Search Revenue (000’s)	$	8,257		$	6,791		$	10,956
Placements		734			596			928
Average Fee	$	11,281		$	11,414		$	11,858
Billing days		63			62			63
Information Technology
Flex Revenue (000’s)	$	53,067		$	53,831		$	53,868
Revenue per billing day (000’s)	$	842		$	868		$	855
Sequential Revenue Change		-1.4	%		-1.6	%		-8.6	%
Hours (000’s)		886			896			844
Flex GP %		24.1	%		26.0	%		25.2	%
Search Revenue (000’s)	$	1,925		$	1,820		$	2,981
Placements		149			136			208
Average Fee	$	13,015		$	13,493		$	14,452
Finance and Accounting
Flex Revenue (000’s)	$	25,932		$	24,487		$	26,339
Revenue per billing day (000’s)	$	412		$	395		$	418
Sequential Revenue Change		5.9	%		2.5	%		-4.3	%
Hours (000’s)		923			922			954
Flex GP %		28.6	%		30.2	%		30.4	%
Search Revenue (000’s)	$	5,076		$	4,160		$	6,644
Placements		472			389			604
Average Fee	$	10,779		$	10,690		$	11,037
Health & Life Sciences
Flex Revenue (000’s)	$	36,468		$	38,398		$	40,509
Revenue per billing day (000’s)	$	579		$	619		$	643
Sequential Revenue Change		-5.0	%		-7.0	%		15.2	%
Hours (000’s)		830			882			968
Flex GP %		27.4	%		27.8	%		27.9	%
Search Revenue (000’s)	$	1,256		$	811		$	1,331
Placements		113			71			116
Average Fee	$	11,098		$	11,403		$	11,478

Kforce Inc.

Key Statistics—Health & Life Sciences

(Unaudited)

	Q1 2003			Q4 2002			Q1 2002
Healthcare-Nursing
Flex Revenue (000’s)	$	10,771		$	11,739		$	15,035
Revenue per billing day (000’s)	$	171		$	189		$	239
Sequential Revenue Change		-8.3	%		-18.2	%		15.3	%
Hours (000’s)		271			295			373
Flex GP %		26.6	%		26.7	%		27.6	%
Search Revenue (000’s)	$	59		$	52		$	54
Placements		12			6			8
Average Fee	$	4,932		$	8,616		$	7,195
Healthcare—Non Nursing
Flex Revenue (000’s)	$	5,907		$	7,831		$	7,953
Revenue per billing day (000’s)	$	94		$	126		$	126
Sequential Revenue Change		-24.6	%		-0.8	%		-2.5	%
Hours (000’s)		83			122			122
Flex GP %		33.6	%		33.5	%		34.0	%
Search Revenue (000’s)	$	64		$	68		$	60
Placements		7			8			7
Average Fee	$	8,995		$	8,525		$	9,177
Pharmaceutical
Flex Revenue (000’s)	$	11,803		$	10,709		$	8,441
Revenue per billing day (000’s)	$	187		$	173		$	134
Sequential Revenue Change		10.2	%		6.8	%		22.2	%
Hours (000’s)		158			148			112
Flex GP %		27.6	%		27.3	%		28.6	%
Search Revenue (000’s)	$	739		$	380		$	621
Placements		47			22			39
Average Fee	$	15,728		$	17,261		$	15,972
Scientific
Flex Revenue (000’s)	$	7,987		$	8,119		$	9,080
Revenue per billing day (000’s)	$	127		$	131		$	144
Sequential Revenue Change		-1.6	%		-10.3	%		37.5	%
Hours (000’s)		318			317			362
Flex GP %		23.4	%		24.4	%		21.9	%
Search Revenue (000’s)	$	394		$	311		$	609
Placements		47			35			65
Average Fee	$	8,367		$	8,864		$	9,355

Kforce Inc.

EBITDA Reconciliation

(000’S OMITTED)

(Unaudited)

	Q1 2003						Q4 2002						Q1 2002
	$			Per share			$			Per share			$			Per share
EBITDA	$	1,926		$	0.06		$	(6,964	)	$	(0.22	)	$	844		$	0.03
Depreciation and Amortization		(1,102	)		(0.04	)		(2,016	)		(0.07	)		(2,724	)		(0.09	)
Interest Expense and Other		(546	)		(0.02	)		(419	)		(0.01	)		(577	)		(0.02	)
Tax Benefit (Expense)		10			0.00			(1,629	)		(0.05	)		860			0.03
Net Income	$	288		$	0.01		$	(11,028	)	$	(0.36	)	$	(1,596	)	$	(0.05	)