On July 31, Kforce (NASDAQ:KFRC) released second-quarter earnings for the period ended June 30.

  • Sales improved 11% to a record high of $259.9 million.
  • Total bank debt was reduced $15 million from the previous quarter. However, year-over-year bank debt has increased 37%.
  • Bradson Corp. merged with Kforce Government Solutions; both companies are subsidiaries of Kforce.
  • Management expects fiscal-third-quarter revenues to range between $260 million and $267 million.
  • Kforce has a four-star Motley Fool CAPS rating, just one star below the top rank. Comparable staffing companies such as MPS Group (NYSE:MPS) and Robert Half International (NYSE:RHI) carry four- and three-star ratings, respectively.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$259.9

$234.4

10.9%

Net Profit

$10.6

$8.4

26.4%

EPS

$0.25

$0.20

25.0%

Diluted Shares

42.4

42.3

0.4%

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

36.2%

34.5%

1.7

Operating Margin

7.2%

6.4%

0.8

Net Margin

4.1%

3.6%

0.5

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$1.3

$0.8

58.3%

Accounts Rec.

$152.2

$132.4

15.0%

Liabilities data unavailable.

The balance sheet reflects the company's health.

Cash Flow Highlights

Q2 2007

Q2 2006

Change

Capital Expenditures

$4.5

$2.7

68.8%

The company did not give a cash flow statement.

Free cash flow is a Fool's best friend.

Related Foolishness:

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