Kforce is a corporate matchmaker, placing highly skilled workers with the companies that need them. The specialty staffing firm provides primarily temporary staffing services (and to a lesser extent permanent placement) in such areas as information technology, accounting, health care, and government. It additionally offers Web-based services such as online resumes, job postings, career management information, and interactive interviews. Clients include FORTUNE 1000 corporations as well as small and midsized firms nationwide.
Serving about 40 major US markets, Kforce operates about 60 field offices across the country; it also has an international office in the Philippines.
The vast majority of Kforce's revenue (about 96%) comes from the provision of temporary staffing services. Direct-hire placements account for the remainder of sales, with fees coming from a percentage of the hired employee's first-year salary. Kforce operates in four segments: technology; accounting and finance; health care and life sciences; and government (which it operates through Kforce Government Solutions). Its tech segment is its biggest moneymaker, accounting for more than 60% of revenues. The segment recruits programmers, systems analysts, and networking technicians.
As the economy improves and the national unemployment rate slowly dips, the company has seen a return to profitability and steady increases in revenue since the market crash in 2008. However, from 2011 to 2012 ts total revenues declined by 3% from $1.11 billion to $1.08 billion. Plus, after three straight years of posting positive net income, Kforce suffered a net loss of $13.7 million in 2012.
The declines in 2012 were primary the result of discontinued operations for the company; its clinical research operations were sold during the year. Its net loss was due to higher selling, general, and administrative expenses coupled with a $69 million impairment charge. This high impairment charge stemmed from delays in getting work from its government solutions segment due to the uncertainty of funding levels from various government programs and agencies.
The company looks to divestitures to stay profitable and optimize its business structure. In 2012 the company sold its clinical research business to inVentiv Health for $50 million in order to focus on its core business. The unit, which provided placement of clinical research staff and contingent contract staffing to biotechnology and pharmaceutical companies, had accounted for about 10% of revenues.
T. Rowe Price Associates and Fidelity Management & Research Company own nearly 11% and 9% of Kforce, respectively.
Kforce traces its roots to the founding of Romac & Associates in 1966. Romac & Associates merged with Source Services Corporation in 1998. The combined entity changed its name to Kforce, an abbreviation of The KnowledgeForce, in 1999.