EX-99.1 3 dex991.htm KFORCE INC. PRESENTATION Kforce Inc. Presentation
1
Exhibit 99.1


2
Forward Looking Statements
Certain of the above statements 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 services provided by Kforce Government Holdings, Inc. and its
subsidiaries, as well as the market for search and flexible staffing assignments; changes in the service mix;
and the risk factors listed from time to time in the Firm's reports filed with the Securities and Exchange
Commission, as well as assumptions regarding the foregoing.  In particular, there can be no assurance that
the above transaction will result in any particular revenue or EBITDA level in 2006, that any future tax benefits
will be realized, or that any organic growth or synergies will be attained.  There is also no assurance that
Kforce
now
has
an
adequate
platform
in
the
government
services
sector
or
that
Kforce
Government Holdings,
Inc. and its subsidiaries have an adequate management team with sufficient expertise to drive organic growth. 
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.
Additionally,
any
statements
related
to
future
integration of Bradson
Corporations
and
Kforce
and
the
leveraging
of
Bradson
professionals
are
forward-looking
statements.  The
Firm undertakes no obligation to publicly update or revise any forward-looking statements.  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.


3
Kforce Government
Practice
Ready for Success
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *


4
Kforce Strategy Timeline


5
Strategic Business Drivers
Achieve scale necessary for strong organic growth
Expand into service area that has high needs, high
barriers to entry, and Kforce has substantial expertise
and infrastructure.
Expand service offering & cross selling opportunities
Enter/expand government practice into F&A services
Acquire professionals with unique expertise
Positive impact on Wash DC market:
Increase scale and presence
Leverage from recruiting in our strongest F&A market
Leverage current KGS operation
Capitalize on scalable Kforce infrastructure
Improved access to high-level decision makers within
various federal government agencies


6
Organizational Structure


7
Patrick Moneymaker
Pat has served as CEO of Ocean Systems Engineering Corp
(OSEC), a privately held company based in Carlsbad, CA until
its
recent
acquisition
in
2006.
OSEC
provides
full
spectrum
engineering services for the Dept of Defense that includes
software development, C4I systems integration and program
management.
From
1968-1998,
Mr.
Moneymaker
was
an
officer in the United States Navy, ultimately achieving the rank
of
Rear
Admiral.
Moneymaker
commanded
several
carrier-
based aviation squadrons and led the Blue Angels Naval
Flight
Demonstration
Squadron.
He
served
as
the
J6
at
U.S.
Strategic Command and as Commander, Naval Space
Command.


8
Federal Government Market
Federal Government is single largest employer in US
60% of employees are over 45 years old
50% are within 5 years of being eligible to retire
Government is world’s largest buyer of Technology at
approximately $65 billion in 2006
Government Finance and Accounting Services spend
estimated at $7 Billion annually
GSA Schedule market is approximately
$20 -
$25
billion annually
Financial and Business Solutions (FABS) and Mission Oriented
Business Integration Services (MOBIS) are two largest contract
vehicles
Government outsourcing expected to grow


9
Kforce Government
Solutions
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *


10
Larry Grant
Larry Grant presently serves as President, Kforce Government
Solutions
Technology
Business.
Prior
to
KGS,
Larry
served
as
Southern Regional Director, Defense and Intelligence Solutions with
General
Dynamics.
Prior
to
General
Dynamics,
Mr.
Grant
had
a
distinguished 20-year career with the United States Air Force. He
held positions as a Computer and Communications Officer and as an
Intelligence Officer. He culminated his military career serving as the
Chief Information Officer/Chief Technology Officer, Directorate of
Intelligence, U.S. Central Command, MacDill AFB, Tampa, FL during
Operation’s Desert Thunder, Desert Fox, and Enduring Freedom.  Mr.
Grant provided leadership and management to all facets of IT support
to U.S. Central Command’s Intelligence operations at MacDill AFB, to
U.S. Central Command’s deployed headquarters in Qatar, and to all
Intelligence organizations assigned to the U.S. Central Command
area of responsibility in Southwest Asia.


11
KGS Overview
Headquartered in Fairfax, VA and providing Technology
services to the Federal Government for 35 years
Offers industry award-winning Data Confidence Center of
Excellence
Clients include:
Department Homeland Security
-
FDIC
Drug Enforcement Administration (DEA)
-
US State Department
U.S. Customs and Border Protection
-
Department of Education
Defense Logistics Agency
-
US Air Force CIO
Currently repositioning business
Strengthening leadership team
Streamlining business operations
Moving to higher-margin, longer-term contracts and task orders
Enhancing Data Confidence Center of Excellence
“People First”
programs


12
KGS Revenue and EBITDA
$0
$10,000
$20,000
$30,000
$40,000
Revenue
$29,766
$31,832
$31,698
$32,218
$29,067
EBITDA
$3,352
$2,871
$3,473
$3,596
$2,047
2002
2003
2004
2005
2006 Fcst
(43.07)%
(9.78)%
3.56%
20.96%
(14.35)%
EBITDA Growth
1.64%
(0.42)%
6.94%
Revenue Growth
11.16%
7.04%
10.96%
9.02%
11.26%
EBITDA
Margin
(Amounts in 000’s; Unaudited)


13
Bradson
Corporation
*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * * * *


14
David Halstead
David
has
been
appointed
the
President
of
Bradson.
He
has an
impressive record of building and sustaining business in the federal
government
marketplace.
Prior
to
this
acquisition,
David directed
Bradson’s
operations and business development strategies for its DoD,
Homeland Security, and civilian agency customers. He was responsible
for Bradson’s
proposal development, contract execution/delivery, and
customer relationship management.
David has expertise in federal
government operations, CFO compliance management, and business
modernization.  He has testified before Congressional Committee on the
topic
of
government
reform
and
consulting.
Prior
to
joining
Bradson
in
1991, David served in the U.S. Air Force.  He has an MA in International
Affairs and a BS in Political Science.


15
Bradson
Overview
Has provided Finance & Accounting Professional Services to
the Federal Government for 20+ years
Accounting, Budgeting, and Financial Mgmt (>80%)
Acquisition, Business, and Program Mgmt
Highly Profitable ($30.6M Revenue, $11.1M EBITDA)
Two GSA schedule contracts, to include FABS and MOBIS
which have a period of performance that runs through 2017
Impressive Customer List
Department of Defense (7+ agencies)
Department of Homeland Security
Long term Contracts & Long term relationships
Outstanding Reputation
Domain Expertise
Industry Expertise and Leadership
205+ employees, all salaried, 85% degrees, 94% with DoD security
clearances, 15% Top Secret
clearances


16
-
Defense
-
Homeland Security
-
Civilian Agencies
Chemical Biological Defense Program (CBDP)
U.S. International Trade Commission (USITC)
General Services Administration, Federal Supply Service (GSA FSS)
Architect of the Capitol (AOC)
Department of the Interior, Bureau of Land Management (DOI BLM)
Department of Housing and Urban Development (HUD)
Department of Homeland Security, U.S. Coast Guard (DHS USCG)
Department of Homeland Security, Customs and Border Protection (DHS CBP)
DoD Washington Headquarters Services (WHS)
Marine Corps Combat Development Command (MCCDC)
United States Marine Corps, Headquarters (USMC HQ)
Naval Sea Systems Command (NAVSEA)
Naval Research Laboratory (NRL)
TRICARE Management Activity (TRICARE TMA)
National Geospatial Intelligence Agency (NGA)
Defense Logistics Agency (DLA)
Defense Threat Reduction Agency (DTRA)
Defense Advanced Research Projects Agency (DARPA)
Impressive Customer List
Department of Defense
Department of Homeland Security
Well Funded Organizations
Critical Programs / Missions
Difficult Entry
Specific Expertise
Security Clearances
Bradson
Customer Overview


17
Federal Environment and Bradson
Accounting, Budgeting,
and Financial Management
Numerous Operational, Day-To-Day
Requirements, plus…
Requirements to Implement GAAP /
Proprietary Accounting Standards
Government Entity Definitions
Accounting Standards
Financial Management Systems
Financial Statements
Standardized General Ledger
Internal Controls
Annual Audits
Requirements for Performance
Planning and Measurement; Linkage to
Budget
Performance Accountability Reporting
Summary of Key Laws and Reform
Initiatives
Chief Financial Officers (CFO) Act
Federal Financial Management Improvement Act
Federal Managers’
Financial Integrity Act
Government Management Reform Act
Clinger Cohen Act
Government Performance and Results Act
OMB Circular A 123, Management Responsibility
for Internal Control
OMB Circular A 127, Financial Management Systems
OMB Circular A 136, Financial Reporting 
Requirements
OMB Bulletin 01 02, Audit Requirements for
Federal Financial Statements
Federal Accounting Standards Advisory Board
(FASAB) Pronouncements
Joint Financial Management Improvement Program
U.S. Standard General Ledger (USSGL)


18
Bradson
Organizational Overview
85%
3% PhD / JD
32% Master’s
50% Bachelor’s
15%
3% Associate’s
9% Some College
3% HS Diploma
BRADSON
Staff Education
3%
32%
50%
3%
3%
9%
PhD/JD
MA/MS
BA/BS
AA/AS
SC
HS


19
Bradson
Organizational Overview
94% Cleared
5% Top Secret /
Sensitive
Compartmented
Information
11% TS
45% Secret
33% Interim Secret
6% No Clearance
BRADSON
DOD Clearances
5%
11%
45%
33%
6%
Top Secret/SCI
Top Secret
Secret
Interim Secret
No Clearance


20
Bradson
Revenue and EBITDA
$0
$10,000
$20,000
$30,000
$40,000
Revenue
$10,013
$13,224
$16,252
$21,556
$30,576
EBITDA
$2,347
$4,044
$5,370
$7,344
$11,137
2002
2003
2004
2005
2006 Fcst
51.65%
41.84%
36.75%
32.79%
72.28%
EBITDA Growth
32.64%
22.90%
32.07%
Revenue Growth
36.42%
34.07%
33.04%
30.58%
23.44%
EBITDA
Margin
Fcst
(Amounts in 000’s; Unaudited)


21
Financial Overview
** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * *  * *


22
Transaction EBITDA Multiples
5.40x
2006 Forecast EBITDA less NPV of Tax Benefit
6.57x
2006 Forecast EBITDA
EBITDA Multiples:
$11,137
2006 Forecast EBITDA
$60,000
Purchase Price less Tax Benefit
13,000
Net Present Value of Tax Benefit
$73,000
Purchase Price
(Amounts in 000’s; Unaudited)


23
$29m
26%
$53m
47%
$31m
27%
Staffing
KGS
Bradson
Bradson
Bradson
KGS
KGS
Staffing
Staffing
Proforma
2006 Government
Revenue Distribution
Total Govt: 
$113 Million
(Unaudited)


24
Proforma
Annual Revenue
Distribution
$60m , 7%
$253m
26%
$455m
46%
$201m
21%
Tech
FA
HLS
Direct Gov't
HLS
HLS
FA
FA
Tech
Tech
Direct
Gov’t
Direct
Gov’t
Total
Revenue: 
$969 Million
(Unaudited)


25
Proforma Combined Balance Sheet
As of June 30,
2006
AR Gross Balance
142,183
$             
Bank Debt
122,000
               
Total Equity
240,935
               
Working Capital
88,588
                  
Trailing Twelve Months EBITDA
70,428
                  
(Amounts in 000’s; Unaudited)


26
Q4 Outlook
Transaction should increase 4
Quarter
revenues by approximately $7.5 million
Transaction costs expected to be minimal
Transaction expected to be accretive in
2007
th


27
Conclusion
Kforce Government Practice has experienced,
proven management
Government sector provides opportunity for
leverage in both Technology and Finance &
Accounting
Government platform acquisition now
complete and focused on organic growth
Positive government workforce demographics
provide significant opportunity
Government solutions is less cyclical than
commercial staffing


28
Attachment A
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *


29
EBITDA Reconciliation
(Amounts in 000’s; Unaudited)
KGS
2002
2003
2004
2005
2006
EBITDA
3,352
$   
2,871
$   
3,473
$   
3,596
$   
2,047
$   
Depreciation and Amortization
(183)
       
(182)
       
(170)
       
(157)
       
(7)
           
Interest Income (Expense) and Other
(189)
       
(43)
         
(44)
         
(116)
       
(110)
       
Earnings Before Income Taxes
2,980
$   
2,646
$   
3,259
$   
3,323
$   
1,930
$   
Bradson
2002
2003
2004
2005
2006
EBITDA
2,347
$   
4,044
$   
5,370
$   
7,344
$   
11,137
Depreciation and Amortization
(65)
         
(68)
         
(59)
         
(62)
         
(69)
         
Interest Income (Expense) and Other
49
          
41
          
32
          
92
          
(1,205)
    
Earnings Before Income Taxes
2,331
$   
4,017
$   
5,343
$   
7,374
$   
9,863
$   
EBITDA, a non-GAAP financial measure, is defined as earnings before interest, income taxes, depreciation and amortization, including
amortization
of
stock-based
compensation.
EBITDA
should
not
be
considered
a
measure
of
financial
performance
under generally
accepted
accounting
principles.
Items
excluded
from
EBITDA
are
significant
components
in
understanding
and
assessing financial
performance.
EBITDA
is
a
key
measure
used
by
management
to
evaluate
its
operations
and
to
provide
useful
information to investors.  
EBITDA should not be considered in isolation or as an alternative to net income, cash flows data or other financial statement
information
presented
in
the
consolidated
financial
statements
as
indicators
of
financial
performance
or
liquidity.
EBITDA
is not a
measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations.  
EBITDA as presented may not be comparable to similarly titled measures of other companies.


30
TTM EBITDA Reconciliation
(Amounts in 000’s; Unaudited)
Kforce
EBITDA
61,098
$        
Depreciation and Amortization
(11,680)
        
Interest Expense and Other
(2,693)
          
Earnings Before Income Taxes
46,725
$        
Bradson
EBITDA
9,330
$          
Depreciation and Amortization
(71)
                
Interest Expense and Other
123
                
Earnings Before Income Taxes
9,382
$          
Combined
EBITDA
70,428
$        
Depreciation and Amortization
(11,751)
        
Interest Expense and Other
(2,570)
          
Earnings Before Income Taxes
56,107
$        
EBITDA, a non-GAAP financial measure, is defined as earnings before interest, income taxes, depreciation and amortization, including
amortization of stock-based compensation.  EBITDA should not be considered a measure of financial  performance under generally
accepted accounting principles.  Items excluded from EBITDA are significant components in understanding and assessing financial
performance.  EBITDA is a key measure used by management to evaluate its operations and to provide useful information to investors.
EBITDA should not be considered in isolation or as an alternative to net income, cash flows data or other financial statement
information presented in the consolidated financial statements as indicators of financial performance or liquidity.  EBITDA is not a
measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations.  
EBITDA as presented may not be comparable to similarly titled measures of other companies.