x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FLORIDA | 59-3264661 | |
State or other jurisdiction of incorporation or organization | IRS Employer Identification No. |
1001 EAST PALM AVENUE, TAMPA, FLORIDA | 33605 | |
Address of principal executive offices | Zip Code |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
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Item 1A. | ||
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Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Revenue | $ | 346,293 | $ | 333,992 | |||
Direct costs | 246,105 | 236,857 | |||||
Gross profit | 100,188 | 97,135 | |||||
Selling, general and administrative expenses | 84,592 | 84,678 | |||||
Depreciation and amortization | 2,008 | 2,050 | |||||
Income from operations | 13,588 | 10,407 | |||||
Other expense, net | 1,339 | 1,185 | |||||
Income before income taxes | 12,249 | 9,222 | |||||
Income tax expense | 3,074 | 3,320 | |||||
Net income | 9,175 | 5,902 | |||||
Other comprehensive income (loss): | |||||||
Change in fair value of interest rate swap, net of tax | 517 | — | |||||
Defined benefit pension plans, net of tax | — | (5 | ) | ||||
Comprehensive income | $ | 9,692 | $ | 5,897 | |||
Earnings per share – basic | $ | 0.37 | $ | 0.23 | |||
Earnings per share – diluted | $ | 0.37 | $ | 0.23 | |||
Weighted average shares outstanding – basic | 24,804 | 25,223 | |||||
Weighted average shares outstanding – diluted | 25,094 | 25,509 | |||||
Dividends declared per share | $ | 0.12 | $ | 0.12 |
March 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 257 | $ | 379 | |||
Trade receivables, net of allowances of $2,109 and $2,333, respectively | 237,847 | 225,865 | |||||
Income tax refund receivable | 774 | 7,116 | |||||
Prepaid expenses and other current assets | 11,994 | 12,085 | |||||
Total current assets | 250,872 | 245,445 | |||||
Fixed assets, net | 38,848 | 39,680 | |||||
Other assets, net | 39,265 | 38,598 | |||||
Deferred tax assets, net | 11,100 | 11,316 | |||||
Intangible assets, net | 3,211 | 3,297 | |||||
Goodwill | 45,968 | 45,968 | |||||
Total assets | $ | 389,264 | $ | 384,304 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and other accrued liabilities | $ | 32,023 | $ | 34,873 | |||
Accrued payroll costs | 44,645 | 46,886 | |||||
Other current liabilities | 1,796 | 1,960 | |||||
Income taxes payable | 3,388 | — | |||||
Total current liabilities | 81,852 | 83,719 | |||||
Long-term debt – credit facility | 123,200 | 116,523 | |||||
Long-term debt – other | 2,198 | 2,597 | |||||
Other long-term liabilities | 47,520 | 47,188 | |||||
Total liabilities | 254,770 | 250,027 | |||||
Commitments and contingencies (Note D) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par; 15,000 shares authorized, none issued and outstanding | — | — | |||||
Common stock, $0.01 par; 250,000 shares authorized, 71,562 and 71,494 issued, respectively | 716 | 715 | |||||
Additional paid-in capital | 439,937 | 437,394 | |||||
Accumulated other comprehensive income | 617 | 100 | |||||
Retained earnings | 200,999 | 195,143 | |||||
Treasury stock, at cost; 45,481 and 45,167 shares, respectively | (507,775 | ) | (499,075 | ) | |||
Total stockholders’ equity | 134,494 | 134,277 | |||||
Total liabilities and stockholders’ equity | $ | 389,264 | $ | 384,304 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||
Shares | Amount | Retained Earnings | Shares | Amount | |||||||||||||||||||||||||
Balance, December 31, 2017 | 71,494 | $ | 715 | $ | 437,394 | $ | 100 | $ | 195,143 | 45,167 | $ | (499,075 | ) | $ | 134,277 | ||||||||||||||
Net income | — | — | — | — | 9,175 | — | — | 9,175 | |||||||||||||||||||||
Cumulative effect of new accounting standard (Note C), net of tax of $63 | — | — | — | — | (179 | ) | — | — | (179 | ) | |||||||||||||||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 63 | 1 | 166 | — | (167 | ) | — | — | — | ||||||||||||||||||||
Exercise of stock options | 5 | — | 46 | — | — | 1 | (46 | ) | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 2,260 | — | — | — | — | 2,260 | |||||||||||||||||||||
Employee stock purchase plan | — | — | 71 | — | — | (6 | ) | 61 | 132 | ||||||||||||||||||||
Dividends ($0.12 per share) | — | — | — | — | (2,973 | ) | — | — | (2,973 | ) | |||||||||||||||||||
Change in fair value of interest rate swap, net of tax of $176 | — | — | — | 517 | — | — | — | 517 | |||||||||||||||||||||
Repurchases of common stock | — | — | — | — | — | 319 | (8,715 | ) | (8,715 | ) | |||||||||||||||||||
Balance, March 31, 2018 | 71,562 | $ | 716 | $ | 439,937 | $ | 617 | $ | 200,999 | 45,481 | $ | (507,775 | ) | $ | 134,494 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 9,175 | $ | 5,902 | |||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||||
Deferred income tax provision, net | 41 | 1,758 | |||||
Provision for bad debts | 368 | 392 | |||||
Depreciation and amortization | 2,115 | 2,103 | |||||
Stock-based compensation expense | 2,260 | 2,064 | |||||
Defined benefit pension plans expense | 455 | 239 | |||||
Loss on deferred compensation plan investments, net | 110 | 104 | |||||
Other | 96 | 272 | |||||
(Increase) decrease in operating assets | |||||||
Trade receivables, net | (12,350 | ) | (21,665 | ) | |||
Income tax refund receivable | 6,341 | (725 | ) | ||||
Prepaid expenses and other current assets | 91 | (20 | ) | ||||
Other assets, net | 69 | (127 | ) | ||||
(Decrease) increase in operating liabilities | |||||||
Accounts payable and other accrued liabilities | (2,096 | ) | (2,113 | ) | |||
Accrued payroll costs | 317 | 1,593 | |||||
Income taxes payable | 3,388 | 623 | |||||
Other long-term liabilities | (130 | ) | (913 | ) | |||
Cash provided by (used in) operating activities | 10,250 | (10,513 | ) | ||||
Cash flows from investing activities: | |||||||
Capital expenditures | (1,469 | ) | (2,272 | ) | |||
Cash used in investing activities | (1,469 | ) | (2,272 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from credit facility | 193,400 | 274,553 | |||||
Payments on credit facility | (186,723 | ) | (254,134 | ) | |||
Payments on other financing arrangements | (569 | ) | (526 | ) | |||
Proceeds from exercise of stock options | — | 72 | |||||
Repurchases of common stock | (12,038 | ) | (2,887 | ) | |||
Cash dividend | (2,973 | ) | (3,037 | ) | |||
Cash (used in) provided by financing activities | (8,903 | ) | 14,041 | ||||
Change in cash and cash equivalents | (122 | ) | 1,256 | ||||
Cash and cash equivalents at beginning of period | 379 | 1,482 | |||||
Cash and cash equivalents at end of period | $ | 257 | $ | 2,738 |
Tech | FA | GS | Total | ||||||||||||
Three Months Ended March 31, | |||||||||||||||
2018 | |||||||||||||||
Revenue | $ | 236,497 | $ | 80,944 | $ | 28,852 | $ | 346,293 | |||||||
Gross profit | $ | 65,348 | $ | 27,161 | $ | 7,679 | $ | 100,188 | |||||||
Operating expenses | 87,939 | ||||||||||||||
Income before income taxes | $ | 12,249 | |||||||||||||
2017 | |||||||||||||||
Revenue | $ | 222,045 | $ | 87,295 | $ | 24,652 | $ | 333,992 | |||||||
Gross profit | $ | 61,100 | $ | 28,655 | $ | 7,380 | $ | 97,135 | |||||||
Operating expenses | 87,913 | ||||||||||||||
Income before income taxes | $ | 9,222 |
Tech | FA | GS | Total | ||||||||||||
2018 | |||||||||||||||
Revenue by type: | |||||||||||||||
Flex revenue | $ | 231,496 | $ | 74,550 | $ | 26,771 | $ | 332,817 | |||||||
Direct Hire revenue | 5,001 | 6,394 | — | 11,395 | |||||||||||
Product revenue | — | — | 2,081 | 2,081 | |||||||||||
Total Revenue | $ | 236,497 | $ | 80,944 | $ | 28,852 | $ | 346,293 | |||||||
2017 | |||||||||||||||
Revenue by type: | |||||||||||||||
Flex revenue | $ | 216,886 | $ | 80,949 | $ | 21,497 | $ | 319,332 | |||||||
Direct Hire revenue | 5,159 | 6,346 | — | 11,505 | |||||||||||
Product revenue | — | — | 3,155 | 3,155 | |||||||||||
Total Revenue | $ | 222,045 | $ | 87,295 | $ | 24,652 | $ | 333,992 |
Beginning Balance | Additions | Deductions | Ending Balance | ||||||||||||
Contract liabilities | $ | 740 | $ | 871 | $ | (669 | ) | $ | 942 |
March 31, 2018 | December 31, 2017 | ||||||
Accounts payable | $ | 20,611 | $ | 21,591 | |||
Accrued liabilities | 11,412 | 13,282 | |||||
Total Accounts payable and other accrued liabilities | $ | 32,023 | $ | 34,873 |
March 31, 2018 | December 31, 2017 | ||||||
Payroll and benefits | $ | 37,985 | $ | 37,788 | |||
Health insurance liabilities | 3,238 | 2,596 | |||||
Payroll taxes | 2,190 | 5,270 | |||||
Workers’ compensation liabilities | 1,232 | 1,232 | |||||
Total Accrued payroll costs | $ | 44,645 | $ | 46,886 |
Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Service cost | $ | 338 | $ | 80 | ||||
Interest cost | 117 | 134 | ||||||
Net periodic benefit cost | $ | 455 | $ | 214 |
Number of Restricted Stock | Weighted Average Grant Date Fair Value | Total Intrinsic Value of Restricted Stock Vested | ||||||||
Outstanding as of December 31, 2017 | 1,355 | $ | 22.67 | |||||||
Granted | 73 | $ | 26.66 | |||||||
Forfeited | (9 | ) | $ | 21.85 | ||||||
Vested | (6 | ) | $ | 17.78 | $ | 169 | ||||
Outstanding as of March 31, 2018 | 1,413 | $ | 22.90 |
Assets/(Liabilities) Measured at Fair Value: | Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
As of March 31, 2018 | |||||||||||||||
Recurring basis: | |||||||||||||||
Interest rate swap derivative instrument | $ | 1,171 | $ | — | $ | 1,171 | $ | — | |||||||
Contingent consideration liability | $ | (191 | ) | $ | — | $ | — | $ | (191 | ) | |||||
As of December 31, 2017 | |||||||||||||||
Recurring basis: | |||||||||||||||
Interest rate swap derivative instrument | $ | 479 | $ | — | $ | 479 | $ | — | |||||||
Contingent consideration liability | $ | (191 | ) | $ | — | $ | — | $ | (191 | ) |
Three Months Ended | |||||||
March 31, | |||||||
2018 | 2017 | ||||||
Cash paid during the period for: | |||||||
Income taxes, net | $ | 89 | $ | 482 | |||
Interest, net | $ | 1,343 | $ | 678 | |||
Non-Cash Financing and Investing Transactions: | |||||||
Employee stock purchase plan | $ | 132 | $ | 127 | |||
Shares tendered in payment of exercise price of stock options | $ | 46 | $ | — | |||
Equipment acquired under capital leases | $ | — | $ | 441 |
• | Executive Summary – An executive summary of our results of operations as of and for the three months ended March 31, 2018. |
• | Results of Operations – An analysis of Kforce’s unaudited consolidated results of operations for the three months ended March 31, 2018 and 2017, which have been presented in the unaudited condensed consolidated financial statements. In order to assist the reader in understanding our business as a whole, certain metrics are presented for each of our segments. |
• | Liquidity and Capital Resources – An analysis of cash flows, credit facility, stock repurchases, off-balance sheet arrangements and contractual obligations and commitments. |
• | Critical Accounting Estimates – A discussion of the accounting estimates that are most critical to aid in fully understanding and evaluating our reported financial results and that require management’s most difficult, subjective or complex judgments. |
• | New Accounting Standards – A discussion of recently issued accounting standards and the potential impact on our consolidated financial statements. |
• | Revenue for the three months ended March 31, 2018 increased 3.7% to $346.3 million from $334.0 million in the comparable period in 2017. |
• | Flex revenue for the three months ended March 31, 2018 increased 4.2% over the comparable period in 2017. Flex revenue increased 6.7% and 24.5% for Tech and GS, respectively, and decreased 7.9% for FA. The year-over-year growth rate in our largest line of business, Tech Flex, accelerated to 6.7% in the first quarter of 2018 from 5.4% in the fourth quarter of 2017. |
• | Direct Hire revenue for the three months ended March 31, 2018 decreased 1.0% to $11.4 million from $11.5 million in the comparable period in 2017. |
• | Flex gross profit margin for the three months ended March 31, 2018 increased 10 basis points to 26.3% from 26.2% in the comparable period in 2017. Flex gross profit margin increased 30 basis points for Tech and FA, reflecting continued pricing discipline, and decreased 50 basis points for GS, which reflects the compression in the spread between bill rates and pay rates experienced on several larger GS contracts. |
• | SG&A expenses as a percentage of revenues for the three months ended March 31, 2018 decreased to 24.4% from 25.4% in the comparable period in 2017. The 100 basis point decrease was primarily a result of lower revenue-generating headcount, lower costs as a result of previous realignment activities and improved associate productivity levels. |
• | Net income for the three months ended March 31, 2018 increased 55.5% to $9.2 million from $5.9 million in the comparable period in 2017 driven by the factors noted above as well as the reduction in our effective tax rate due to the enactment of the Tax Cuts and Jobs Act (“TCJA”). |
• | Diluted earnings per share for the three months ended March 31, 2018 increased to $0.37 per share from $0.23 per share in the comparable period in 2017 driven principally by the factors noted above. |
• | The Firm declared and paid dividends of $0.12 per share during the three months ended March 31, 2018, resulting in a total cash payout of $3.0 million. |
• | The total amount outstanding under our Credit Facility as of March 31, 2018 increased $6.7 million to $123.2 million as compared to $116.5 million as of December 31, 2017. |
Three Months Ended | ||||||
March 31, | ||||||
2018 | 2017 | |||||
Revenue by segment: | ||||||
Tech | 68.3 | % | 66.5 | % | ||
FA | 23.4 | 26.1 | ||||
GS | 8.3 | 7.4 | ||||
Total Revenue | 100.0 | % | 100.0 | % | ||
Revenue by type: | ||||||
Flex | 96.1 | % | 95.6 | % | ||
Direct Hire | 3.3 | 3.4 | ||||
Product | 0.6 | 1.0 | ||||
Total Revenue | 100.0 | % | 100.0 | % | ||
Gross profit | 28.9 | % | 29.1 | % | ||
Selling, general and administrative expenses | 24.4 | % | 25.4 | % | ||
Depreciation and amortization | 0.6 | % | 0.6 | % | ||
Income from operations | 3.9 | % | 3.1 | % | ||
Income before income taxes | 3.5 | % | 2.8 | % | ||
Net income | 2.6 | % | 1.8 | % |
Three Months Ended March 31, | |||||||||||
2018 | Increase (Decrease) | 2017 | |||||||||
Tech | |||||||||||
Flex revenue | $ | 231,496 | 6.7 | % | $ | 216,886 | |||||
Direct Hire revenue | 5,001 | (3.1 | )% | 5,159 | |||||||
Total Tech revenue | $ | 236,497 | 6.5 | % | $ | 222,045 | |||||
FA | |||||||||||
Flex revenue | $ | 74,550 | (7.9 | )% | $ | 80,949 | |||||
Direct Hire revenue | 6,394 | 0.8 | % | 6,346 | |||||||
Total FA revenue | $ | 80,944 | (7.3 | )% | $ | 87,295 | |||||
GS | |||||||||||
Flex revenue | $ | 26,771 | 24.5 | % | $ | 21,497 | |||||
Product revenue | 2,081 | (34.0 | )% | 3,155 | |||||||
Total GS revenue | $ | 28,852 | 17.0 | % | $ | 24,652 | |||||
Total Flex revenue | $ | 332,817 | 4.2 | % | $ | 319,332 | |||||
Total Direct Hire revenue | 11,395 | (1.0 | )% | 11,505 | |||||||
Total Product revenue | 2,081 | (34.0 | )% | 3,155 | |||||||
Total Revenue | $ | 346,293 | 3.7 | % | $ | 333,992 |
Year-Over-Year Revenue Growth Rates | |||||||||||||||
(Per Billing Day) | |||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | |||||||||||
Billing Days | 64 | 61 | 63 | 64 | 64 | ||||||||||
Tech Flex | 6.7 | % | 5.4 | % | 3.3 | % | 1.5 | % | 2.7 | % | |||||
FA Flex | (7.9 | )% | 0.3 | % | 4.1 | % | 4.3 | % | 7.5 | % | |||||
GS Flex | 24.5 | % | 27.9 | % | 12.7 | % | 1.2 | % | 8.2 | % | |||||
Total Flex | 4.2 | % | 5.5 | % | 4.2 | % | 2.2 | % | 4.2 | % | |||||
Total Firm | 3.7 | % | 5.1 | % | 3.0 | % | 1.6 | % | 3.7 | % |
Three Months Ended March 31, 2018 | ||||||||
Tech | FA | |||||||
Key drivers | ||||||||
Volume (hours billed) | $ | (4,458 | ) | $ | (8,907 | ) | ||
Bill rate | 17,534 | 2,506 | ||||||
Billable expenses | 1,534 | 2 | ||||||
Total change in Flex revenues | $ | 14,610 | $ | (6,399 | ) |
Three Months Ended March 31, | |||||||||
2018 | Increase (Decrease) | 2017 | |||||||
Tech | 3,178 | (2.1 | )% | 3,245 | |||||
FA | 2,196 | (11.0 | )% | 2,468 | |||||
Total Flex hours billed | 5,374 | (5.9 | )% | 5,713 |
Three Months Ended March 31, 2018 | ||||||||
Tech | FA | |||||||
Key Drivers | ||||||||
Volume (number of placements) | $ | (292 | ) | $ | 558 | |||
Placement fee | 134 | (510 | ) | |||||
Total change in Direct Hire revenue | $ | (158 | ) | $ | 48 |
Three Months Ended March 31, | |||||||||
2018 | Increase (Decrease) | 2017 | |||||||
Tech | 278 | (5.4 | )% | 294 | |||||
FA | 575 | 8.7 | % | 529 | |||||
Total number of placements | 853 | 3.6 | % | 823 |
Three Months Ended March 31, | |||||||||||
2018 | Increase (Decrease) | 2017 | |||||||||
Tech | $ | 18,021 | 2.8 | % | $ | 17,537 | |||||
FA | 11,115 | (7.4 | )% | 12,002 | |||||||
Total average placement fee | $ | 13,362 | (4.4 | )% | $ | 13,981 |
Three Months Ended March 31, | |||||||||
2018 | Increase (Decrease) | 2017 | |||||||
Tech | 27.6 | % | 0.4 | % | 27.5 | % | |||
FA | 33.6 | % | 2.4 | % | 32.8 | % | |||
GS | 26.6 | % | (11.0 | )% | 29.9 | % | |||
Total gross profit percentage | 28.9 | % | (0.7 | )% | 29.1 | % |
Three Months Ended March 31, | ||||||||
2018 | Increase (Decrease) | 2017 | ||||||
Tech | 26.1 | % | 1.2 | % | 25.8 | % | ||
FA | 27.9 | % | 1.1 | % | 27.6 | % | ||
GS | 24.5 | % | (2.0 | )% | 25.0 | % | ||
Total Flex gross profit percentage | 26.3 | % | 0.4 | % | 26.2 | % |
Three Months Ended March 31, 2018 | ||||||||
Tech | FA | |||||||
Key Drivers | ||||||||
Volume (hours billed) | $ | 3,768 | $ | (1,763 | ) | |||
Bill rate | 638 | 221 | ||||||
Total change in Flex gross profit | $ | 4,406 | $ | (1,542 | ) |
2018 | % of Revenues | 2017 | % of Revenues | ||||||||||
Three Months Ended March 31, | |||||||||||||
Compensation, commissions, payroll taxes and benefits costs | $ | 70,893 | 20.4 | % | $ | 71,644 | 21.5 | % | |||||
Other (1) | 13,699 | 4.0 | % | 13,034 | 3.9 | % | |||||||
Total SG&A | $ | 84,592 | 24.4 | % | $ | 84,678 | 25.4 | % |
(1) | Balances in “other” include bad debt expense, lease expense, professional fees, travel, telephone, computer and certain other expenses. |
Three Months Ended March 31, | |||||||||||
2018 | Increase (Decrease) | 2017 | |||||||||
Fixed asset depreciation (includes capital leases) | $ | 1,665 | (3.4 | )% | $ | 1,724 | |||||
Capitalized software amortization | 257 | 7.1 | % | 240 | |||||||
Intangible asset amortization | 86 | — | % | 86 | |||||||
Total Depreciation and amortization | $ | 2,008 | (2.0 | )% | $ | 2,050 |
Three Months Ended | |||||||
March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | 9,175 | $ | 5,902 | |||
Non-cash provisions and other | 5,445 | 6,932 | |||||
Changes in operating assets/liabilities | (4,370 | ) | (23,347 | ) | |||
Net cash provided by (used in) operating activities | 10,250 | (10,513 | ) | ||||
Capital expenditures | (1,469 | ) | (2,272 | ) | |||
Free cash flow | 8,781 | (12,785 | ) | ||||
Change in debt | 6,677 | 20,419 | |||||
Repurchases of common stock | (12,038 | ) | (2,887 | ) | |||
Cash dividend | (2,973 | ) | (3,037 | ) | |||
Other | (569 | ) | (454 | ) | |||
Change in cash and cash equivalents | $ | (122 | ) | $ | 1,256 |
2018 | 2017 | ||||||
Three Months Ended March 31, | |||||||
Net income | $ | 9,175 | $ | 5,902 | |||
Depreciation and amortization | 2,115 | 2,103 | |||||
Stock-based compensation expense | 2,260 | 2,064 | |||||
Interest expense, net | 1,297 | 1,173 | |||||
Income tax expense | 3,074 | 3,320 | |||||
Adjusted EBITDA | $ | 17,921 | $ | 14,562 |
Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Open market repurchases | $ | 9,565 | $ | 935 | ||||
Repurchase of shares related to tax withholding requirements for vesting of restricted stock | 2,473 | 1,952 | ||||||
Total cash flow impact of common stock repurchases | $ | 12,038 | $ | 2,887 | ||||
Cash paid in current period for settlement of prior year repurchases | $ | 3,323 | $ | 935 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
January 1, 2018 to January 31, 2018 | 97,132 | $ | 26.54 | 97,132 | $ | 35,901,930 | |||||||
February 1, 2018 to February 28, 2018 | 134,660 | $ | 27.49 | 132,922 | $ | 32,248,597 | |||||||
March 1, 2018 to March 31, 2018 | 87,486 | $ | 27.84 | 87,486 | $ | 29,813,098 | |||||||
Total | 319,278 | $ | 27.30 | 317,540 | $ | 29,813,098 |
(1) | Includes 1,738 shares of stock received upon vesting of restricted stock to satisfy statutory minimum tax withholding requirements for the period February 1, 2018 through February 28, 2018. |
Exhibit Number | Description | |
3.1 | Amended and Restated Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 33-91738) filed with the SEC on April 28, 1995. | |
Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended. | ||
Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended. | ||
Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended. | ||
Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on May 17, 2000. | ||
Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Annual Report on Form 10-K (File No. 000-26058) filed with the SEC on March 29, 2002. | ||
Amended & Restated Bylaws, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on April 29, 2013. | ||
Credit Agreement, dated May 25, 2017, between Kforce Inc. and its subsidiaries and Wells Fargo Bank, National Association, and the other lenders thereto, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on May 25, 2017. | ||
Certification by the Chief Executive Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification by the Chief Financial Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification by the Chief Executive Officer of Kforce Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification by the Chief Financial Officer of Kforce Inc. pursuant to 18 U.S.C. Section 2350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.1 | Part I, Item 1 of this Form 10-Q formatted in XBRL. |
Kforce Inc. | ||||||
(Registrant) | ||||||
Date: May 2, 2018 | By: | /s/ DAVID M. KELLY | ||||
David M. Kelly | ||||||
Senior Vice President and Chief Financial Officer | ||||||
(Principal Financial Officer) | ||||||
Date: May 2, 2018 | By: | /s/ JEFFREY B. HACKMAN | ||||
Jeffrey B. Hackman | ||||||
Senior Vice President, Finance and Accounting | ||||||
(Principal Accounting Officer) |
/s/ DAVID L. DUNKEL | |
David L. Dunkel, | |
Chief Executive Officer | |
(Principal Executive Officer) |
/s/ DAVID M. KELLY | |
David M. Kelly, | |
Senior Vice President, Chief Financial Officer | |
(Principal Financial Officer) |
/s/ DAVID L. DUNKEL | |
David L. Dunkel, | |
Chief Executive Officer | |
(Principal Executive Officer) |
/s/ DAVID M. KELLY | |
David M. Kelly, | |
Senior Vice President, Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2018 |
Apr. 27, 2018 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | KFORCE INC | |
Entity Central Index Key | 0000930420 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,114,417 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
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Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,109 | $ 2,333 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 71,562,000 | 71,494,000 |
Treasury stock, shares (in shares) | 45,481,000 | 45,167,000 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2017 |
Mar. 31, 2018 |
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Statement of Stockholders' Equity [Abstract] | ||
Tax effect of new accounting standard | $ 63 | |
Interest rate swap tax | $ 176 | |
Dividend (in dollars per share) | $ 0.12 |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of the 2017 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by U.S. GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2017 was derived from our audited Consolidated Balance Sheet as of December 31, 2017, as presented in our 2017 Annual Report on Form 10-K. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and increased holiday and vacation days taken. In addition, we typically experience an increase in costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which negatively impacts our gross profit and overall profitability. The results of operations for any interim period may be impacted by these factors and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” “the Company,” “we,” “the Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: revenue transaction prices; allowance for doubtful accounts; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and goodwill and any related impairment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the three months ended March 31, 2018 and 2017, there were 290 thousand and 286 thousand common stock equivalents included in the diluted WASO, respectively. For the three months ended March 31, 2018 and 2017, there were insignificant anti-dilutive common stock equivalents. New Accounting Standards Recently Adopted Accounting Standards In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. The amended guidance (“Topic 606”) is effective for annual and interim reporting periods beginning after December 15, 2017. We adopted this new standard effective January 1, 2018, using the modified retrospective transition method with a cumulative adjustment to the opening balance of retained earnings. The comparative information continues to be reported under the accounting standards in effect for the period presented ("Topic 605"). Refer to Note C - "Revenue Recognition" for additional accounting policy and transition disclosures. Accounting Standards Not Yet Adopted In February 2018, the FASB issued authoritative guidance regarding the reclassification of certain stranded tax effects from accumulated other comprehensive income to retained earnings as a result of the change in tax rates related to the Tax Cuts and Jobs Act. The guidance is effective for fiscal periods beginning after December 15, 2018, with early adoption permitted in any interim period. The guidance should be applied either in the period of adoption or retrospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities by simplifying the rules around hedge accounting and improving the disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted in any interim period. The hedge accounting guidance should be implemented using a modified retrospective approach for any hedges that exist on the date of adoption, while the presentation and disclosure requirements must be applied prospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In June 2016, the FASB issued authoritative guidance on accounting for credit losses on financial instruments, including trade receivables. The guidance requires the application of a current expected credit loss model, which measures credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted no sooner than annual periods beginning after December 15, 2018. The guidance requires companies to apply the requirements using a modified retrospective approach. Kforce is currently evaluating the potential impact on the consolidated financial statements. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce anticipates that the adoption of this standard will have a significant impact to the consolidated balance sheet as it will result in recording our operating leases as a right-of-use asset and corresponding lease liability. Kforce continues to assess all potential impacts of the standard, especially with respect to disclosures. |
Reportable Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments | Reportable Segments Kforce provides services through the following segments: (1) Technology (“Tech”); (2) Finance and Accounting (“FA”); and (3) Government Solutions (“GS”). Historically, and for the three months ended March 31, 2018 and 2017, we have reported sales and gross profit information on a segment basis. Total assets, liabilities and operating expenses are not reported separately by segment as our operations are largely combined. The following table provides information concerning the operations of our segments (in thousands):
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition We adopted Topic 606 using the modified retrospective transition method for all contracts that were not completed as of January 1, 2018. Due to the cumulative impact of adopting Topic 606, we recorded a reduction to the opening balance of retained earnings of $0.2 million, net of tax, as of January 1, 2018 with the offset recorded as a contract liability. The adjustment is related to a change in the revenue recognition pattern for the performance obligations under certain GS contracts where a contract provides our customer with a material right to a future discount and standard warranty revenues related to our product business. As of and for the three months ended March 31, 2018, the unaudited condensed consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605. Revenue Recognition All of our revenue and trade receivables are generated from contracts with customers and substantially all of our revenues are derived from U.S. domestic operations. The following section describes the accounting policies that we believe have significant judgments, or changes in judgment, as a result of adopting Topic 606. Revenue is recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that gross reporting of revenues as a principal versus net as an agent is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified good or service to the customer, (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the billing rate, and (iii) bears the risk and rewards of the transaction including credit risk if the customer fails to pay for services performed. Flex Revenue Flex revenue is recognized as the temporary staffing services are provided by our consultants at the contractually established bill rates, net of applicable variable consideration. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Certain temporary staffing services are provided under time-and-material and fixed-price arrangements. For time-and-materials contracts, we recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer satisfied over time. For fixed-price contracts which are frequently utilized in our GS segment, revenues are recognized using the input method based on costs incurred as a proportion of estimated total costs. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Management uses significant judgments when estimating the total labor hours expected to complete the contract performance obligation. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (1) the candidate accepted the position; (2) the candidate resigned from their current employer; and (3) the agreed upon start date falls within the following month. Since the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Product Revenue Revenue for our product business, which is a component of our GS segment, is recognized after the transfer of control to the customer, which typically occurs upon delivery. Variable Consideration Transaction prices for Flex revenue include variable consideration such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method and based on management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Our policy is to include the variable consideration in the transaction price if it is probable that a significant future reversal will not occur. These reserve accruals are recorded in the same period that the related revenue is recognized, resulting in a reduction of revenue with the offset recorded as an other accrued liability in the unaudited condensed consolidated financial statements. Payment Terms Our payment terms and conditions vary by arrangement, although terms are typically less than 90 days. Generally the timing between the satisfaction of the performance obligation and the payment is not significant and we currently do not have any significant financing components. We record a contract liability when we receive consideration from a customer prior to transferring goods or services to the customer or if we have an unconditional right and services have been performed. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense (except for the product revenue), which is presented on a separate line in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in selling, general and administrative expenses (“SG&A”), along with other customary costs such as administrative and corporate compensation. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period would be less than one year. Trade Receivables and Related Reserves Trade receivables are recorded net of reserves for doubtful accounts and revenue adjustments.The allowance for doubtful accounts is determined based on factors including recent write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade receivables among clients and higher-risk sectors, and the current state of the U.S. economy. Trade receivables are written off after all reasonable collection efforts have been exhausted. Under Topic 605, the Direct Hire fallout reserve was recorded as a Trade receivables allowance and under Topic 606, it is recorded within Accounts payable and other accrued liabilities in the Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, the Direct Hire fallout reserve was $0.5 million. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Disaggregation of Revenue The following table provides information about disaggregated revenue by segment and revenue type for the three months ended March 31, 2018 and 2017 (in thousands):
GS Flex revenue includes 40.6% and 28.9% of revenue recognized from fixed-price contracts for the three months ended March 31, 2018 and 2017, respectively. Contract Balances The following table presents changes in contract liabilities for the three months ended March 31, 2018 (in thousands):
We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer, which is represented as deductions in the table above. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long term liabilities, if over one year, in the Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2018, we expect to recognize the revenue from contract liabilities as follows: $0.5 million in 2018 and $0.1 million for each of the years ended 2019, 2020, 2021 and 2022. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note D - Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At March 31, 2018, our liability would be approximately $32.4 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $13.0 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason. As of March 31, 2018, the accrued severance balance was approximately $0.4 million for two executives. Litigation We are involved in legal proceedings, claims, and administrative matters that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our unaudited condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance in amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. |
Accounts Payable and Other Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following (in thousands):
Our accounts payable balance includes trade creditor and independent contractor payables. Our accrued liabilities balance includes the current portion of the deferred compensation plans liability, contract liabilities from contracts with customers and other accrued liabilities. |
Accrued Payroll Costs |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Payroll Costs | Accrued Payroll Costs Accrued payroll costs consisted of the following (in thousands):
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Credit Facility |
3 Months Ended |
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Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On May 25, 2017, the Firm entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, Regions Bank and BMO Harris Bank, N.A., as co-documentation agents, and the lenders referred to therein (the “Credit Facility”). Under the Credit Facility, the Firm has a maximum borrowing capacity of $300.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million (the “Commitment”), which will be available to the Firm in the form of revolving credit loans, swingline loans and letters of credit. Letters of credit and swingline loans under the Credit Facility are subject to sublimits of $10.0 million. The maturity date of the Credit Facility is May 25, 2022. Borrowings under the Credit Facility are secured by substantially all of the tangible and intangible assets of the Firm, excluding the Firm’s corporate headquarters and certain other designated executed collateral. Revolving credit loans under the Credit Facility bear interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Credit Facility bear interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.25% to 0.75% and the Applicable Margin for LIBOR Rate loans ranges from 1.25% to 1.75%. The Firm will pay a quarterly non-refundable commitment fee equal to the Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.35%. The Firm is subject to certain affirmative and negative covenants including (but not limited to), the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.25 to 1.00. The numerator in the fixed charge coverage ratio is defined pursuant to the Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and other permitted items pursuant to our Credit Facility (disclosed as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Credit Facility. The total leverage ratio is defined pursuant to the Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities could be limited if (a) the total leverage ratio is greater than 2.75 to 1.00 and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million. As of March 31, 2018, Kforce was not limited in making distributions and executing repurchases of our equity securities. As of March 31, 2018 and December 31, 2017, $123.2 million and $116.5 million was outstanding, respectively, and $173.6 million and $180.3 million was available under the Credit Facility, respectively, subject to the covenants described above. Kforce had $3.2 million of outstanding letters of credit at March 31, 2018 and December 31, 2017 which, pursuant to the Credit Facility, reduces the availability. |
Employee Benefit Plans |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Deferred Compensation Plans The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified in Accounts payable and other accrued liabilities if payable within the next year or in Other long-term liabilities if payable after the next year or upon retirement or termination of employment in the accompanying Unaudited Condensed Consolidated Balance Sheets. At March 31, 2018 and December 31, 2017, amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $1.9 million and $2.9 million, respectively, and $28.6 million and $28.9 million were included in Other long-term liabilities, respectively, in the Unaudited Condensed Consolidated Balance Sheets. Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within the Rabbi Trust. The balance of the assets within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $31.3 million and $31.4 million as of March 31, 2018 and December 31, 2017, respectively, and is included in Other assets, net in the accompanying Unaudited Condensed Consolidated Balance Sheets. Supplemental Executive Retirement Plan Kforce maintains a Supplemental Executive Retirement Plan (“SERP”) for the benefit of certain executive officers. The primary goals of the SERP are to create an additional wealth accumulation opportunity, restore lost qualified pension benefits due to government limitations and retain our covered executive officers. The SERP is a non-qualified benefit plan and does not include elective deferrals of covered executive officers’ compensation. The following table presents the components of net periodic benefit cost (in thousands):
The service cost is recorded in SG&A and the interest cost is recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The projected benefit obligation as of March 31, 2018 and December 31, 2017 was $14.9 million and $14.4 million, respectively, and is recorded in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. There is no requirement for Kforce to fund the SERP and, as a result, no contributions were made to the SERP during the three months ended March 31, 2018. Kforce does not currently anticipate funding the SERP during the year ended December 31, 2018. |
Stock Incentive Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Incentive Plans | Stock Incentive Plans On April 18, 2017, the Kforce shareholders approved the 2017 Stock Incentive Plan (“2017 Plan”). The 2017 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2017 Plan is approximately 3.0 million shares. The 2017 Plan terminates on April 18, 2027. Prior to the effective date of the 2017 Plan, the Company granted stock awards to eligible participants under our 2016 Stock Incentive Plan and 2013 Stock Incentive Plan (collectively the “Prior Plans”). As of the effective date of the 2017 Plan, no additional awards may be granted pursuant to the Prior Plans; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the Prior Plans. During the three months ended March 31, 2018 and 2017, stock-based compensation expense was $2.3 million and $2.1 million, respectively. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: (1) for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program or (2) as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are generally based on total shareholder return performance goals, which are established by Kforce’s Compensation Committee during the first quarter of the year of performance. Restricted stock granted during the three months ended March 31, 2018 will vest over a period between five to ten years, with equal vesting annually. RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents. The following table presents the restricted stock activity for the three months ended March 31, 2018 (in thousands, except per share amounts):
As of March 31, 2018, total unrecognized stock compensation expense related to restricted stock was $27.0 million, which will be recognized over a weighted average remaining period of 4.2 years. |
Derivative Instrument and Hedging Activity |
3 Months Ended |
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Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Activity | Derivative Instrument and Hedging Activity Kforce is exposed to interest rate risk as a result of our corporate borrowing activities. The Firm uses an interest rate swap derivative as a risk management tool to mitigate the potential impact of interest rate risk on our financial results. On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A. (the “Swap”). The Swap was effective May 31, 2017 and matures April 29, 2022. The Swap rate is 1.81%, which is added to our interest rate margin to determine the fixed rate that the Firm will pay to the counterparty during the term of the Swap based on the notional amount of the Swap. The notional amount of the Swap is $65.0 million for the first three years and decreases to $25.0 million for years four and five. The Swap has been designated as a cash flow hedge and was effective as of March 31, 2018. The change in the fair value of the Swap was recorded as a component of Accumulated other comprehensive income in the Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, the fair value of the Swap was $1.2 million and $0.5 million asset, respectively. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Kforce’s interest rate swap is measured at fair value using readily observable inputs, such as the LIBOR interest rate, which are considered to be Level 2 inputs. The Swap is recorded in Other assets, net within the accompanying Unaudited Condensed Consolidated Balance Sheets. Refer to Note J - “Derivative Instrument and Hedging Activity” for a complete discussion of the Firm’s derivative instrument. Our contingent consideration liability relates to a non-significant business acquisition within our GS segment, which is measured on a recurring basis and recorded at fair value, using the discounted cash flow method. The inputs used to calculate the fair value of the contingent consideration liability are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. An increase in future cash flows may result in a higher estimated fair value while a decrease in future cash flows may result in a lower estimated fair value of the contingent consideration liability. Remeasurements to fair value are recorded in Other expense, net within the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. There was no activity in our recurring Level 3 fair value measurements for the three months ended March 31, 2018. The contingent consideration liability is recorded in Other long-term liabilities within the accompanying Unaudited Condensed Consolidated Balance Sheets. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired. The estimated fair values as of March 31, 2018 and December 31, 2017 were as follows (in thousands):
There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the three months ended March 31, 2018. |
Supplemental Cash Flow Information |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides information regarding supplemental cash flows (in thousands):
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by U.S. GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2017 was derived from our audited Consolidated Balance Sheet as of December 31, 2017, as presented in our 2017 Annual Report on Form 10-K. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and increased holiday and vacation days taken. In addition, we typically experience an increase in costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which negatively impacts our gross profit and overall profitability. The results of operations for any interim period may be impacted by these factors and are not necessarily indicative of, nor comparable to, the results of operations for a full year. |
Principles of Consolidation | The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” “the Company,” “we,” “the Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: revenue transaction prices; allowance for doubtful accounts; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and goodwill and any related impairment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Earnings per Share | Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. |
New Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. The amended guidance (“Topic 606”) is effective for annual and interim reporting periods beginning after December 15, 2017. We adopted this new standard effective January 1, 2018, using the modified retrospective transition method with a cumulative adjustment to the opening balance of retained earnings. The comparative information continues to be reported under the accounting standards in effect for the period presented ("Topic 605"). Refer to Note C - "Revenue Recognition" for additional accounting policy and transition disclosures. Accounting Standards Not Yet Adopted In February 2018, the FASB issued authoritative guidance regarding the reclassification of certain stranded tax effects from accumulated other comprehensive income to retained earnings as a result of the change in tax rates related to the Tax Cuts and Jobs Act. The guidance is effective for fiscal periods beginning after December 15, 2018, with early adoption permitted in any interim period. The guidance should be applied either in the period of adoption or retrospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities by simplifying the rules around hedge accounting and improving the disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted in any interim period. The hedge accounting guidance should be implemented using a modified retrospective approach for any hedges that exist on the date of adoption, while the presentation and disclosure requirements must be applied prospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In June 2016, the FASB issued authoritative guidance on accounting for credit losses on financial instruments, including trade receivables. The guidance requires the application of a current expected credit loss model, which measures credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted no sooner than annual periods beginning after December 15, 2018. The guidance requires companies to apply the requirements using a modified retrospective approach. Kforce is currently evaluating the potential impact on the consolidated financial statements. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce anticipates that the adoption of this standard will have a significant impact to the consolidated balance sheet as it will result in recording our operating leases as a right-of-use asset and corresponding lease liability. Kforce continues to assess all potential impacts of the standard, especially with respect to disclosures. |
Reportable Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations of Segments | The following table provides information concerning the operations of our segments (in thousands):
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenues | The following table provides information about disaggregated revenue by segment and revenue type for the three months ended March 31, 2018 and 2017 (in thousands):
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Contract Balances | The following table presents changes in contract liabilities for the three months ended March 31, 2018 (in thousands):
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Accounts Payable and Other Accrued Liabilities (Tables) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following (in thousands):
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Accrued Payroll Costs (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Payroll Costs | Accrued payroll costs consisted of the following (in thousands):
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Employee Benefit Plans (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost (in thousands):
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Stock Incentive Plans (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the three months ended March 31, 2018 (in thousands, except per share amounts):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The estimated fair values as of March 31, 2018 and December 31, 2017 were as follows (in thousands):
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Supplemental Cash Flow Information (Tables) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Supplemental Cash Flow Information | The following table provides information regarding supplemental cash flows (in thousands):
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Summary of Significant Accounting Policies (Details) - shares shares in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Earnings per Share | ||
Common stock equivalents (in shares) | 290 | 286 |
Anti-dilutive common stock equivalents (in shares) | 0 | 0 |
Reportable Segments - Operations of Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Segment Reporting Information [Line Items] | ||
Revenue | $ 346,293 | $ 333,992 |
Gross profit | 100,188 | 97,135 |
Operating expenses | 87,939 | 87,913 |
Income before income taxes | 12,249 | 9,222 |
Tech | ||
Segment Reporting Information [Line Items] | ||
Revenue | 236,497 | 222,045 |
Gross profit | 65,348 | 61,100 |
FA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 80,944 | 87,295 |
Gross profit | 27,161 | 28,655 |
GS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 28,852 | 24,652 |
Gross profit | $ 7,679 | $ 7,380 |
Revenue Recognition - Schedule of Contract Balances (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2018
USD ($)
| |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning Balance | $ 740 |
Additions | 871 |
Deductions | (669) |
Ending Balance | $ 942 |
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
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Payables and Accruals [Abstract] | ||
Accounts payable | $ 20,611 | $ 21,591 |
Accrued liabilities | 11,412 | 13,282 |
Total Accounts payable and other accrued liabilities | $ 32,023 | $ 34,873 |
Accrued Payroll Costs (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 37,985 | $ 37,788 |
Health insurance liabilities | 3,238 | 2,596 |
Payroll taxes | 2,190 | 5,270 |
Workers’ compensation liabilities | 1,232 | 1,232 |
Total Accrued payroll costs | $ 44,645 | $ 46,886 |
Employee Benefit Plans - Additional Information (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Retirement Benefits [Abstract] | ||
Current deferred compensation liability | $ 1,900,000 | $ 2,900,000 |
Deferred compensation plan | 28,600,000 | 28,900,000 |
Deferred compensation plan assets | 31,300,000 | 31,400,000 |
Supplemental executive retirement plan | 14,900,000 | $ 14,400,000 |
Employer contributions to benefit plans | 0 | |
Expected funding of the SERP in the current year | $ 0 |
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Retirement Benefits [Abstract] | ||
Service cost | $ 338 | $ 80 |
Interest cost | 117 | 134 |
Net periodic benefit cost | $ 455 | $ 214 |
Stock Incentive Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Apr. 18, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2.3 | $ 2.1 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expenses | $ 27.0 | ||
Weighted average period expected to be recognized | 4 years 2 months 12 days | ||
2017 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 3.0 | ||
Minimum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted, vesting period | 5 years | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted, vesting period | 10 years |
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
$ / shares
shares
| |
Number of Restricted Stock | |
Outstanding, as of beginning of period (in shares) | shares | 1,355 |
Granted (in shares) | shares | 73 |
Forfeited (in shares) | shares | (9) |
Vested (in shares) | shares | (6) |
Outstanding, as of end of period (in shares) | shares | 1,413 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ / shares | $ 22.67 |
Granted (in dollars per share) | $ / shares | 26.66 |
Forfeited (in dollars per share) | $ / shares | 21.85 |
Vested (in dollars per share) | $ / shares | 17.78 |
Outstanding, as of end of period (in dollars per share) | $ / shares | $ 22.90 |
Vested, total intrinsic value of restricted stock vested | $ | $ 169 |
Derivative Instrument and Hedging Activity (Details) - Designated as Hedging Instrument - Interest Rate Swap - USD ($) |
May 31, 2021 |
May 31, 2020 |
May 31, 2019 |
May 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
May 31, 2017 |
---|---|---|---|---|---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative rate | 1.81% | ||||||
Derivative, notional amount | $ 65,000,000 | ||||||
Interest rate swap derivative instrument | $ 1,200,000 | $ 500,000 | |||||
Scenario, Forecast | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, notional amount | $ 25,000,000 | $ 25,000,000 | $ 65,000,000 | $ 65,000,000 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Cash paid during the period for: | ||
Income taxes, net | $ 89 | $ 482 |
Interest, net | 1,343 | 678 |
Non-Cash Financing and Investing Transactions: | ||
Employee stock purchase plan | 132 | 127 |
Shares tendered in payment of exercise price of stock options | 46 | 0 |
Equipment acquired under capital leases | $ 0 | $ 441 |
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