Slide 1: Baird's 2018 Global Consumer, Technology & Services Conference
KFORCE, INC. Baird’s 2018 Global Consumer, Technology & Services Conference June 6, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements • All of the information presented that is not historical in nature should be considered to be forward-looking statements that are subject to certain risks, uncertainties or assumptions and may be affected by certain other factors, including but not limited to the specific
Slide 3: Kforce Overview
Kforce Overview $1.4 Billion NASDAQ “KFRC” $1.4 billion in More than 60 offices Consistently ranked in the annual revenue throughout the U.S. and top 5 for IT and for Finance 20+ years publicly traded two National Recruiting & Accounting staffing firms Centers Top Industries Served Financial Service
Slide 4: Key Investment Highlights
Key Investment Highlights Large, attractive end market with positive secular trends • Tech staffing spend projected at $31 billion in 2018; roughly doubled over last 10 yrs. • Strong demand being driven by companies investments in technology to improve customer-facing applications and gain operation
Slide 5: Current Revenue Stream
Current Revenue Stream Q1 ‘18 Revenue - $346.3M Government $28.9M 8% Finance & Accounting $80.9M 24% Tech $236.5M 68% 5 5
Slide 6: Attributes of the Kforce Model
Attributes of the Kforce Model REVENUE GROWTH ACCELERATION IMPROVING OPERATING MARGIN PROFILE • Highly focused sales & delivery alignment • Portfolio management driving gross margin • Focus on the “sweet spot” of staffing; stability. domestic professional and technical • Improving associate producti
Slide 7: Q2 2018 Financial Estimates
Q2 2018 Financial Estimates Financial Estimates Ranges of Estimates Revenues (in millions) $355 $360 Total Firm YoY 4.3% 5.8% Gross Margin 30.0% 30.2% SG&A as a % of Revenue 23.0% 23.2% Operating Income as a % of Revenue 6.3% 6.5% EPS $0.62 $0.65 Effective Tax Rate 26.0% WASO Diluted (in millions) 2
Slide 8: Tech Flex YoY Revenue Growth
Tech Flex YoY Revenue Growth 8.0% 8.6% 6.0% 6.7% 5.4% 4.0% 3.3% 2.0% 1.5% 0.0% Year over Year Billing Day Change *Mid Point Q2 ‘18 Guidance 8
Slide 9: Summary
Summary ▪ Professional domestic staffing sector experiencing solid secular demand ▪ 100% domestic revenue stream ▪ Tech Flex accelerating to 2x industry growth rate ▪ Strong return of capital to shareholders ▪ Improving operating margin ▪ Investing in long-term sustained growth 9 9