Kforce, Inc. · NYSE:KFRC
Kforce — Sidoti & Company Spring 2021 Investor Conference
15 slides from Kforce's conference presentation, Mar 25, 2021
Slide 1: March 2021 Investor Presentation
March 2021 Investor Presentation Kforce | 1
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 f
Slide 3: Kforce Overview
Kforce Overview WE ARE… OUR FOOTPRINT AND SCALE LASTING PERSONAL RELATIONSHIPS FOCUS ON TECHNOLOGY OFFERING GOVT | 6% FA Core HLS | 22% FA Covid $1.2 17% 8% Billion Market Cap 2007 Today NASDAQ “KFRC” 100% of our revenue stream is generated Kforce serves approximately 70% of the domestically and sup
Slide 4: Our Strong Foundation as the Preparation
Preparation 2020 TECH FLEX A long-term strategy to simplify our offerings and focus on technical and professional staffing and solutions markets. 3.3% Our Strong 4.0% Strong financial position with solid balance sheet, cash flows and ample liquidity. 2.0% 0.8% Cloud-based and mobile IT investments p
Slide 5: Key Investment Highlights
Key Investment Highlights LARGE, ATTRACTIVE END MARKET WITH POSITIVE SECULAR TRENDS • Tech staffing spend projected at $32 billion in 2021 • Strong demand being driven by companies’ investments in technology to improve customer-facing applications and gain operational efficiencies • Solid longer-ter
Slide 6: Our Technology Business
Our Technology Business The IT temporary staffing market is poised for better relative performance due to solid secular demand drivers: Technology Staffing Historical and Projected Spending $ in billions • The pandemic and resulting shutdowns have tested every company’s digital capabilities, 31.0 32
Slide 7: Our FA Business
Our FA Business FA Staffing Historical and Projected Spending Key Commentary: $ in billions • Currently focusing on repositioning the FA business into more highly- 7.8 8.2 8.4 7.8 skilled positions that are less susceptible to technological disruption 7.2 7.6 7.0 • Our direction is to create a dedic
Slide 8: Financials Overview
Financials Overview Confidential and Proprietary Kforce | 8
Slide 9: Revenue by Business Line
TECH FLEX NON-COVID FA FLEX 9.0% 2018-2020 8.0% 9.0% 6.8% 6.0% 0.0% Revenue 3.0% -8.0% -10.2% -8.6% 0.0% -16.0% by Business -0.8% -17.8% -3.0% -24.0% Line DIRECT HIRE TOTAL FA FLEX TOTAL FIRM 15.0% 36.0% 4.4% 25.8% 0.0% 24.0% 6.0% -4.6% 3.6% 3.3% 3.3% -15.0% 12.0% 4.0% -30.0% 0.0% 2.0% -29.8% -45.0%
Slide 10: Kforce Financial Performance
Sol i d Reve n u e Per fo rma n c e Kforce 2020 revenue of $1.398 billion Up 3.3% on a YoY billing day basis. Q4 ‘20 revenues of $354.0 million, up 5.3% on a YoY billing day basis. 2020 2020 and Q4 ’20 Tech Flex is down 0.8% and up 0.8% on a YoY billing day basis, respectively Financial Rai si ng th
Slide 11: Long-Term Sustainable Revenue Growth
Long-Term Sustainable Revenue Growth Pre-pandemic CAGR (2009-2019) in Tech Flex was 8.5%, which was above the market expectation per SIA. Clear focus on driving growth in our Technology business and managed teams / solutions offering. Greatest growth is being seen from the larger consumers of our se
Slide 12: Open Market Buyback
Open Market Buyback Consistently deployed capital towards share repurchases benefiting shareholders $120,000 $40.00 $35.53 $28.42 $28.81 $90,000 $30.00 Avg. Sto c k P r ic e $24.69 Amount in 000s $23.29 $21.07 $10.38 $19.22 $60,000 $20.00 $15.77 $15.07 $13.14 $30,000 $10.00 $0 $0.00 2010 2011 2012 2
Slide 13: Q1 2021 Financial Estimates
Q1 2021 Financial Estimates FULL YEAR 2021 – FINANCIAL EXPECTATIONS The information below reflects our 2021 financial expectations, which assumes continued strong growth in our technology business and takes into account the revenue declines from the Financial Estimates Ranges of Estimates COVID-19 r
Slide 14: Positioned To Excel
SOLID DEMAND IN O U R S T RO N G END MARKETS PERFORMANCE Achieved CAGR of nearly 6% since 2007 in our We have a high-quality, 100% domestic, Technology business, which is 2x the industry professional and technical revenue stream. Returned to year-over-year growth in Tech Flex We believe the secular
Slide 15: Summary
Summary 80% of our revenues # 1 To p R e c o g n i z e d Stable margin profile Business model provides a r e i n Te c h n o l o g y , which Te c h S t a f f i n g B r a n d , given mix of growth in strong, p r e d i c t a b l e c a s h is experiencing solid secular by SIA 2019 and N e t Technology a
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