Kelly Reports Second-Quarter 2024 Earnings
Kelly (Nasdaq: KELYA, KELYB) reported Q2 2024 earnings with operating earnings of $12.2 million, up from $6.2 million in Q2 2023. Adjusted earnings rose to $28.1 million, a 95% increase. Revenue decreased 13.1% to $1.06 billion, primarily due to the sale of European staffing operations. However, organic revenue grew 0.6%. The adjusted EBITDA margin improved by 170 basis points to 3.7%, driven by reduced operating expenses from business transformation initiatives. The acquisition of Motion Recruitment Partners (MRP) in May 2024 is expected to further expand EBITDA margins. Adjusted EPS increased significantly to $0.71 from $0.36 in Q2 2023. Kelly declared a dividend of $0.075 per share, payable on September 4, 2024.
Kelly (Nasdaq: KELYA, KELYB) ha riportato i guadagni del secondo trimestre 2024, con utile operativo di 12,2 milioni di dollari, rispetto ai 6,2 milioni di dollari nel secondo trimestre 2023. I guadagni rettificati sono aumentati a 28,1 milioni di dollari, con un incremento del 95%. I ricavi sono diminuiti del 13,1% a 1,06 miliardi di dollari, principalmente a causa della vendita delle operazioni di staffing in Europa. Tuttavia, i ricavi organici sono cresciuti dello 0,6%. Il margine EBITDA rettificato è migliorato di 170 punti base, arrivando al 3,7%, grazie alla riduzione delle spese operative dovuta alle iniziative di trasformazione aziendale. L'acquisizione di Motion Recruitment Partners (MRP) a maggio 2024 dovrebbe ulteriormente espandere i margini EBITDA. L'EPS rettificato è aumentato significativamente a 0,71 dollari rispetto a 0,36 dollari nel secondo trimestre 2023. Kelly ha dichiarato un dividendo di 0,075 dollari per azione, che sarà pagato il 4 settembre 2024.
Kelly (Nasdaq: KELYA, KELYB) reportó ganancias del segundo trimestre de 2024, con ganancias operativas de 12,2 millones de dólares, frente a 6,2 millones en el segundo trimestre de 2023. Las ganancias ajustadas aumentaron a 28,1 millones de dólares, un incremento del 95%. Los ingresos disminuyeron un 13,1% a 1,06 mil millones de dólares, principalmente debido a la venta de operaciones de contratación en Europa. Sin embargo, los ingresos orgánicos crecieron un 0,6%. El margen EBITDA ajustado mejoró en 170 puntos básicos, alcanzando el 3,7%, impulsado por la reducción de los gastos operativos debido a iniciativas de transformación empresarial. Se espera que la adquisición de Motion Recruitment Partners (MRP) en mayo de 2024 expanda aún más los márgenes de EBITDA. El EPS ajustado aumentó significativamente a 0,71 dólares desde 0,36 dólares en el segundo trimestre de 2023. Kelly declaró un dividendo de 0,075 dólares por acción, pagadero el 4 de septiembre de 2024.
켈리(Kelly) (Nasdaq: KELYA, KELYB)는 2024년 2분기 실적을 보고했으며, 운영 수익은 1,220만 달러로 2023년 2분기의 620만 달러에서 증가했습니다. 조정된 수익은 2,810만 달러로, 95% 증가했습니다. 매출은 유럽 인력 운영 매각으로 인해 13.1% 감소하여 10억 6천만 달러에 도달했습니다. 그러나 유기적 매출은 0.6% 성장했습니다. 조정된 EBITDA 마진은 운영 비용 절감으로 인해 170bp 개선되어 3.7%에 도달했습니다. 2024년 5월에 이루어진 Motion Recruitment Partners (MRP)의 인수는 EBITDA 마진을 더욱 확대할 것으로 예상됩니다. 조정된 주당 순이익(EPS)은 0.71달러로 2023년 2분기의 0.36달러에서 크게 증가했습니다. 켈리는 주당 0.075달러의 배당금을 선언했으며, 이는 2024년 9월 4일 지급될 예정입니다.
Kelly (Nasdaq: KELYA, KELYB) a publié ses résultats pour le deuxième trimestre 2024, affichant
Kelly (Nasdaq: KELYA, KELYB) berichtete über die Ergebnisse des zweiten Quartals 2024 mit operativen Erträgen von 12,2 Millionen Dollar, im Vergleich zu 6,2 Millionen Dollar im zweiten Quartal 2023. Die bereinigten Erträge stiegen auf 28,1 Millionen Dollar, was einem Anstieg von 95% entspricht. Der Umsatz sank um 13,1% auf 1,06 Milliarden Dollar, hauptsächlich aufgrund des Verkaufs der europäischen Personalvermittlung. Allerdings wuchs der organische Umsatz um 0,6%. Die bereinigte EBITDA-Marge verbesserte sich um 170 Basispunkte auf 3,7%, was durch die reduzierten Betriebskosten aus Unternehmensumstrukturierungsmaßnahmen unterstützt wurde. Die Übernahme von Motion Recruitment Partners (MRP) im Mai 2024 wird voraussichtlich die EBITDA-Margen weiter steigern. Der bereinigte Gewinn pro Aktie stieg signifikant auf 0,71 Dollar von 0,36 Dollar im zweiten Quartal 2023. Kelly erklärte eine Dividende von 0,075 Dollar pro Aktie, die am 4. September 2024 zahlbar ist.
- Operating earnings increased from $6.2 million to $12.2 million year-over-year
- Adjusted earnings rose 95% to $28.1 million
- Organic revenue grew 0.6% despite challenging market conditions
- Adjusted EBITDA margin improved by 170 basis points to 3.7%
- Adjusted EPS increased from $0.36 to $0.71 year-over-year
- Acquisition of Motion Recruitment Partners expected to further expand EBITDA margins
- Total revenue decreased 13.1% to $1.06 billion due to sale of European staffing operations
- Cautious customer approach to hiring and new projects impacted growth
Insights
Kelly's Q2 2024 results show a mixed picture. While revenue declined
Adjusted earnings of
Kelly's Q2 results reflect broader labor market trends. The cautious approach to hiring and project initiation among customers aligns with economic uncertainty. However, the stabilization in customer demand on a sequential basis suggests a potential bottoming out of market conditions.
The company's strategic moves, including divesting European operations and acquiring MRP, position it for improved profitability. The focus on specialty talent solutions could prove advantageous as companies seek specialized skills in a tight labor market. Kelly's ability to expand margins in this environment demonstrates effective cost management and potential for further gains as market conditions improve.
- Q2 operating earnings of
$12.2 million ;$28.1 million on an adjusted basis, up95% - Q2 revenue down following sale of European staffing operations; up
0.6% on an organic basis - Q2 adjusted EBITDA margin increased 170 basis points to
3.7% driven by meaningful reduction in operating expenses resulting from business transformation initiatives and sale of European staffing operations - Company expects further expansion of EBITDA margin from the May 31, 2024 acquisition of Motion Recruitment Partners, LLC ("MRP")
TROY, Mich. , Aug. 08, 2024 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the second quarter of 2024.
Peter Quigley, president and chief executive officer, announced revenue for the second quarter of 2024 totaled
Kelly reported operating earnings in the second quarter of 2024 of
Earnings per share in the second quarter of 2024 were
“In the second quarter, employers continued to take a cautious approach to hiring, though customer demand stabilized on a sequential basis across much of our business – a development that is reflected in Kelly’s organic revenue for the quarter,” said Quigley. “As we continued to navigate uncertain market conditions, we remained focused on what we can control. Our ongoing growth and efficiency initiatives increased Kelly’s EBITDA margin in the first half of the year to
Kelly also reported that on August 7, its board of directors declared a dividend of
In conjunction with its second-quarter earnings release, Kelly has published a financial presentation on the Investor Relations page of its public website and will host a conference call at 9 a.m. ET on August 8 to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Internet:
Kellyservices.com
Via the telephone
(877) 692-8955 (toll free) or (234) 720-6979 (caller paid)
Enter access code 5728672
After the prompt, please enter “#”
A recording of the conference call will be available after 1:30 p.m. ET on August 8, 2024, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 2784290#. The recording will also be available at kellyservices.com during this period.
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 500,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2023 was
KLYA-FIN
| ANALYST & MEDIA CONTACT: | |||
| Scott Thomas | |||
| (248) 251-7264 | |||
| scott.thomas@kellyservices.com |
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| FOR THE 13 WEEKS ENDED JUNE 30, 2024 AND JULY 2, 2023 | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| % | CC % | |||||||||||||||
| 2024 | 2023 | Change | Change | Change | ||||||||||||
| Revenue from services | $ | 1,057.5 | $ | 1,217.2 | $ | (159.7 | ) | (13.1 | ) | % | (13.0 | ) | % | |||
| Cost of services | 843.8 | 976.6 | (132.8 | ) | (13.6 | ) | ||||||||||
| Gross profit | 213.7 | 240.6 | (26.9 | ) | (11.2 | ) | (11.1 | ) | ||||||||
| Selling, general and administrative expenses | 191.5 | 232.0 | (40.5 | ) | (17.4 | ) | (17.4 | ) | ||||||||
| Asset impairment charge | 5.5 | 2.4 | 3.1 | 124.1 | ||||||||||||
| Loss on sale of EMEA staffing operations | 10.0 | — | 10.0 | NM | ||||||||||||
| Gain on sale of assets | (5.5 | ) | — | (5.5 | ) | NM | ||||||||||
| Earnings from operations | 12.2 | 6.2 | 6.0 | 95.9 | ||||||||||||
| Other income (expense), net | (6.5 | ) | (0.6 | ) | (5.9 | ) | NM | |||||||||
| Earnings before taxes | 5.7 | 5.6 | 0.1 | 1.4 | ||||||||||||
| Income tax expense (benefit) | 1.1 | (1.9 | ) | 3.0 | 160.7 | |||||||||||
| Net earnings | $ | 4.6 | $ | 7.5 | $ | (2.9 | ) | (38.2 | ) | |||||||
| Basic earnings per share | $ | 0.13 | $ | 0.20 | $ | (0.07 | ) | (35.0 | ) | |||||||
| Diluted earnings per share | $ | 0.12 | $ | 0.20 | $ | (0.08 | ) | (40.0 | ) | |||||||
| STATISTICS: | ||||||||||||||||
| Permanent placement revenue (included in revenue from services) | $ | 10.7 | $ | 15.7 | $ | (5.0 | ) | (32.0 | ) | % | (32.0 | ) | % | |||
| Gross profit rate | 20.2 | % | 19.8 | % | 0.4 | pts. | ||||||||||
| Adjusted EBITDA | $ | 40.5 | $ | 24.6 | $ | 15.9 | ||||||||||
| Adjusted EBITDA margin | 3.8 | % | 2.0 | % | 1.8 | pts. | ||||||||||
| Effective income tax rate | 19.4 | % | (32.4 | ) | % | 51.8 | pts. | |||||||||
| Average number of shares outstanding (millions): | ||||||||||||||||
| Basic | 35.5 | 36.0 | ||||||||||||||
| Diluted | 35.9 | 36.4 | ||||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| FOR THE 26 WEEKS ENDED JUNE 30, 2024 AND JULY 2, 2023 | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| % | CC % | |||||||||||||||
| 2024 | 2023 | Change | Change | Change | ||||||||||||
| Revenue from services | $ | 2,102.6 | $ | 2,485.5 | $ | (382.9 | ) | (15.4 | ) | % | (15.4 | ) | % | |||
| Cost of services | 1,683.2 | 1,990.8 | (307.6 | ) | (15.4 | ) | ||||||||||
| Gross profit | 419.4 | 494.7 | (75.3 | ) | (15.2 | ) | (15.2 | ) | ||||||||
| Selling, general and administrative expenses | 382.0 | 475.4 | (93.4 | ) | (19.6 | ) | (19.7 | ) | ||||||||
| Asset impairment charge | 5.5 | 2.4 | 3.1 | 124.1 | ||||||||||||
| Gain on sale of EMEA staffing operations | (1.6 | ) | — | (1.6 | ) | NM | ||||||||||
| Gain on sale of assets | (5.5 | ) | — | (5.5 | ) | NM | ||||||||||
| Earnings from operations | 39.0 | 16.9 | 22.1 | 130.2 | ||||||||||||
| Gain on forward contract | 1.2 | — | 1.2 | NM | ||||||||||||
| Other income (expense), net | (4.7 | ) | 1.4 | (6.1 | ) | (439.8 | ) | |||||||||
| Earnings before taxes | 35.5 | 18.3 | 17.2 | 93.8 | ||||||||||||
| Income tax expense (benefit) | 5.1 | (0.1 | ) | 5.2 | NM | |||||||||||
| Net earnings | $ | 30.4 | $ | 18.4 | $ | 12.0 | 65.3 | |||||||||
| Basic earnings per share | $ | 0.84 | $ | 0.49 | $ | 0.35 | 71.4 | |||||||||
| Diluted earnings per share | $ | 0.83 | $ | 0.49 | $ | 0.34 | 69.4 | |||||||||
| STATISTICS: | ||||||||||||||||
| Permanent placement revenue (included in revenue from services) | $ | 18.7 | $ | 33.2 | $ | (14.5 | ) | (43.7 | ) | % | (43.8 | ) | % | |||
| Gross profit rate | 19.9 | % | 19.9 | % | — | pts. | ||||||||||
| Adjusted EBITDA | $ | 73.8 | $ | 51.4 | $ | 22.4 | ||||||||||
| Adjusted EBITDA margin | 3.5 | % | 2.1 | % | 1.4 | pts. | ||||||||||
| Effective income tax rate | 14.4 | % | (0.3 | ) | % | 14.7 | pts. | |||||||||
| Average number of shares outstanding (millions): | ||||||||||||||||
| Basic | 35.5 | 36.5 | ||||||||||||||
| Diluted | 35.9 | 36.9 | ||||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||
| SEGMENT INFORMATION | ||||||||||||
| (UNAUDITED) | ||||||||||||
| (In millions of dollars) | ||||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | ||||||||||||
| Second Quarter | ||||||||||||
| % | CC % | |||||||||||
| 2024 | 2023 | Change | Change | |||||||||
| Professional & Industrial | ||||||||||||
| Revenue from services | $ | 357.7 | $ | 390.8 | (8.5 | ) | % | (8.4 | ) | % | ||
| Gross profit | 62.3 | 68.5 | (8.9 | ) | (8.8 | ) | ||||||
| Total SG&A expenses | 55.4 | 65.0 | (14.8 | ) | (14.7 | ) | ||||||
| Asset impairment charge | — | 0.3 | (100.0 | ) | ||||||||
| Business unit profit (loss) | 6.9 | 3.2 | 124.5 | |||||||||
| Gross profit rate | 17.4 | % | 17.5 | % | (0.1 | ) | pts. | |||||
| Science, Engineering & Technology | ||||||||||||
| Revenue from services | $ | 332.2 | $ | 301.4 | 10.2 | % | 10.2 | % | ||||
| Gross profit | 77.3 | 68.1 | 13.5 | 13.5 | ||||||||
| Total SG&A expenses | 52.8 | 50.1 | 5.6 | 5.6 | ||||||||
| Asset impairment charge | — | 0.1 | (100.0 | ) | ||||||||
| Business unit profit (loss) | 24.5 | 17.9 | 36.2 | |||||||||
| Gross profit rate | 23.3 | % | 22.6 | % | 0.7 | pts. | ||||||
| Education | ||||||||||||
| Revenue from services | $ | 251.1 | $ | 206.4 | 21.7 | % | 21.7 | % | ||||
| Gross profit | 36.9 | 32.5 | 13.4 | 13.4 | ||||||||
| Total SG&A expenses | 24.2 | 23.2 | 4.3 | 4.3 | ||||||||
| Business unit profit (loss) | 12.7 | 9.3 | 36.2 | |||||||||
| Gross profit rate | 14.7 | % | 15.8 | % | (1.1 | ) | pts. | |||||
| Outsourcing & Consulting | ||||||||||||
| Revenue from services | $ | 117.0 | $ | 113.7 | 2.9 | % | 3.2 | % | ||||
| Gross profit | 37.2 | 41.3 | (10.2 | ) | (9.8 | ) | ||||||
| Total SG&A expenses | 34.2 | 39.1 | (12.3 | ) | (12.2 | ) | ||||||
| Asset impairment charge | — | 2.0 | (100.0 | ) | ||||||||
| Business unit profit (loss) | 3.0 | 0.2 | NM | |||||||||
| Gross profit rate | 31.8 | % | 36.4 | % | (4.6 | ) | pts. | |||||
| International | ||||||||||||
| Revenue from services | $ | — | $ | 205.9 | (100.0 | ) | % | (100.0 | ) | % | ||
| Gross profit | — | 30.2 | (100.0 | ) | (100.0 | ) | ||||||
| Total SG&A expenses | — | 30.2 | (100.0 | ) | (100.0 | ) | ||||||
| Business unit profit (loss) | — | — | (100.0 | ) | ||||||||
| Gross profit rate | — | % | 14.7 | % | (14.7 | ) | pts. | |||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| RESULTS OF OPERATIONS BY SEGMENT | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (In millions of dollars) | |||||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | |||||||||||||
| June Year to Date | |||||||||||||
| % | CC % | ||||||||||||
| 2024 | 2023 | Change | Change | ||||||||||
| Professional & Industrial | |||||||||||||
| Revenue from services | $ | 716.1 | $ | 793.4 | (9.8 | ) | % | (9.9 | ) | % | |||
| Gross profit | 126.2 | 140.7 | (10.3 | ) | (10.5 | ) | |||||||
| SG&A expenses excluding restructuring charges | 113.0 | 135.1 | (16.3 | ) | (16.4 | ) | |||||||
| Restructuring charges | 0.4 | 3.3 | (89.3 | ) | (89.3 | ) | |||||||
| Total SG&A expenses | 113.4 | 138.4 | (18.0 | ) | (18.2 | ) | |||||||
| Asset impairment charge | — | 0.3 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 12.8 | 2.0 | NM | ||||||||||
| Business unit profit (loss) excluding restructuring charges | 13.2 | 5.3 | 147.0 | ||||||||||
| Gross profit rate | 17.6 | % | 17.7 | % | (0.1 | ) | pts. | ||||||
| Science, Engineering & Technology | |||||||||||||
| Revenue from services | $ | 621.5 | $ | 607.8 | 2.2 | % | 2.3 | % | |||||
| Gross profit | 141.7 | 139.4 | 1.7 | 1.7 | |||||||||
| Total SG&A expenses | 99.0 | 102.9 | (3.7 | ) | (3.7 | ) | |||||||
| Asset impairment charge | — | 0.1 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 42.7 | 36.4 | 17.2 | ||||||||||
| Gross profit rate | 22.8 | % | 22.9 | % | (0.1 | ) | pts. | ||||||
| Education | |||||||||||||
| Revenue from services | $ | 541.0 | $ | 455.8 | 18.7 | % | 18.7 | % | |||||
| Gross profit | 79.0 | 71.8 | 10.0 | 10.0 | |||||||||
| Total SG&A expenses | 48.2 | 47.1 | 2.3 | 2.3 | |||||||||
| Business unit profit (loss) | 30.8 | 24.7 | 24.7 | ||||||||||
| Gross profit rate | 14.6 | % | 15.8 | % | (1.2 | ) | pts. | ||||||
| Outsourcing & Consulting | |||||||||||||
| Revenue from services | $ | 225.0 | $ | 228.3 | (1.4 | ) | % | (1.1 | ) | % | |||
| Gross profit | 72.5 | 82.9 | (12.6 | ) | (12.4 | ) | |||||||
| Total SG&A expenses | 71.3 | 80.8 | (11.7 | ) | (11.7 | ) | |||||||
| Asset impairment charge | — | 2.0 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 1.2 | 0.1 | NM | ||||||||||
| Gross profit rate | 32.2 | % | 36.3 | % | (4.1 | ) | pts. | ||||||
| International | |||||||||||||
| Revenue from services | $ | — | $ | 401.7 | (100.0 | ) | % | (100.0 | ) | % | |||
| Gross profit | — | 59.9 | (100.0 | ) | (100.0 | ) | |||||||
| Total SG&A expenses | — | 60.6 | (100.0 | ) | (100.0 | ) | |||||||
| Business unit profit (loss) | — | (0.7 | ) | (100.0 | ) | ||||||||
| Gross profit rate | — | % | 14.9 | % | (14.9 | ) | pts. | ||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (UNAUDITED) | ||||||||||
| (In millions of dollars) | ||||||||||
| June 30, 2024 | December 31, 2023 | July 2, 2023 | ||||||||
| Current Assets | ||||||||||
| Cash and equivalents | $ | 38.2 | $ | 125.8 | $ | 124.8 | ||||
| Trade accounts receivable, less allowances of | ||||||||||
| 1,193.9 | 1,160.6 | 1,423.6 | ||||||||
| Prepaid expenses and other current assets | 78.7 | 48.9 | 79.8 | |||||||
| Assets held for sale | — | 291.3 | — | |||||||
| Total current assets | 1,310.8 | 1,626.6 | 1,628.2 | |||||||
| Noncurrent Assets | ||||||||||
| Property and equipment, net | 26.8 | 24.6 | 28.8 | |||||||
| Operating lease right-of-use assets | 53.1 | 47.1 | 61.6 | |||||||
| Deferred taxes | 302.3 | 321.1 | 308.4 | |||||||
| Retirement plan assets | 245.9 | 230.3 | 217.8 | |||||||
| Goodwill, net | 372.6 | 151.1 | 151.1 | |||||||
| Intangibles, net | 272.3 | 137.7 | 148.2 | |||||||
| Other assets | 44.4 | 43.1 | 50.9 | |||||||
| Total noncurrent assets | 1,317.4 | 955.0 | 966.8 | |||||||
| Total Assets | $ | 2,628.2 | $ | 2,581.6 | $ | 2,595.0 | ||||
| Current Liabilities | ||||||||||
| Accounts payable and accrued liabilities | $ | 594.8 | $ | 646.1 | $ | 692.7 | ||||
| Operating lease liabilities | 12.4 | 8.4 | 13.9 | |||||||
| Accrued payroll and related taxes | 168.3 | 156.2 | 270.6 | |||||||
| Accrued workers' compensation and other claims | 18.7 | 22.1 | 23.3 | |||||||
| Income and other taxes | 18.1 | 17.2 | 54.4 | |||||||
| Liabilities held for sale | — | 169.9 | — | |||||||
| Total current liabilities | 812.3 | 1,019.9 | 1,054.9 | |||||||
| Noncurrent Liabilities | ||||||||||
| Long-term debt | 210.4 | — | — | |||||||
| Operating lease liabilities | 49.6 | 42.9 | 52.6 | |||||||
| Accrued workers' compensation and other claims | 34.7 | 40.9 | 41.4 | |||||||
| Accrued retirement benefits | 232.6 | 217.4 | 193.0 | |||||||
| Other long-term liabilities | 8.7 | 6.8 | 11.2 | |||||||
| Total noncurrent liabilities | 536.0 | 308.0 | 298.2 | |||||||
| Stockholders' Equity | ||||||||||
| Common stock | 38.5 | 38.5 | 38.5 | |||||||
| Treasury stock | (52.3 | ) | (57.3 | ) | (51.3 | ) | ||||
| Paid-in capital | 29.5 | 30.6 | 29.0 | |||||||
| Earnings invested in the business | 1,266.7 | 1,241.7 | 1,229.1 | |||||||
| Accumulated other comprehensive income (loss) | (2.5 | ) | 0.2 | (3.4 | ) | |||||
| Total stockholders' equity | 1,279.9 | 1,253.7 | 1,241.9 | |||||||
| Total Liabilities and Stockholders' Equity | $ | 2,628.2 | $ | 2,581.6 | $ | 2,595.0 | ||||
| STATISTICS: | ||||||||||
| Working Capital | $ | 498.5 | $ | 606.7 | $ | 573.3 | ||||
| Current Ratio | 1.6 | 1.6 | 1.5 | |||||||
| Debt-to-capital % | 14.1 | % | 0.0 | % | 0.0 | % | ||||
| Global Days Sales Outstanding | 57 | 59 | 61 | |||||||
| Year-to-Date Free Cash Flow | $ | 25.5 | $ | 61.4 | $ | 14.1 | ||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| FOR THE 26 WEEKS ENDED JUNE 30, 2024 AND JULY 2, 2023 | ||||||
| (UNAUDITED) | ||||||
| (In millions of dollars) | ||||||
| 2024 | 2023 | |||||
| Cash flows from operating activities: | ||||||
| Net earnings | $ | 30.4 | $ | 18.4 | ||
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||||
| Asset impairment charge | 5.5 | 2.4 | ||||
| Gain on sale of EMEA staffing operations | (1.6 | ) | — | |||
| Gain on sale of assets | (5.5 | ) | — | |||
| Depreciation and amortization | 17.6 | 17.2 | ||||
| Operating lease asset amortization | 4.6 | 8.4 | ||||
| Provision for credit losses and sales allowances | (0.2 | ) | 0.4 | |||
| Stock-based compensation | 5.2 | 5.6 | ||||
| Gain on sale of equity securities | — | (2.0 | ) | |||
| Gain on forward contract | (1.2 | ) | — | |||
| Other, net | (1.1 | ) | 0.5 | |||
| Changes in operating assets and liabilities, net of acquisition | (21.5 | ) | (27.5 | ) | ||
| Net cash from operating activities | 32.2 | 23.4 | ||||
| Cash flows from investing activities: | ||||||
| Capital expenditures | (6.7 | ) | (9.3 | ) | ||
| Proceeds from sale of EMEA staffing operations, net of cash disposed | 77.1 | — | ||||
| Proceeds from sale of assets | 4.4 | — | ||||
| Acquisition of company, net of cash received | (427.4 | ) | — | |||
| Payment for settlement of forward contract | (2.4 | ) | — | |||
| Proceeds from equity securities | — | 2.0 | ||||
| Other investing activities | 1.9 | (0.4 | ) | |||
| Net cash used in investing activities | (353.1 | ) | (7.7 | ) | ||
| Cash flows from financing activities: | ||||||
| Net change in short-term borrowings | — | (0.7 | ) | |||
| Proceeds from long-term debt | 378.6 | — | ||||
| Payments on long-term debt | (168.2 | ) | — | |||
| Financing lease payments | — | (0.5 | ) | |||
| Dividend payments | (5.4 | ) | (5.6 | ) | ||
| Payments of tax withholding for stock awards | (2.1 | ) | (1.3 | ) | ||
| Buyback of common shares | — | (34.8 | ) | |||
| Contingent consideration payments | — | (2.5 | ) | |||
| Other financing activities | (1.3 | ) | — | |||
| Net cash from (used in) financing activities | 201.6 | (45.4 | ) | |||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (2.7 | ) | 1.8 | |||
| Net change in cash, cash equivalents and restricted cash | (122.0 | ) | (27.9 | ) | ||
| Cash, cash equivalents and restricted cash at beginning of period | 167.6 | 162.4 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 45.6 | $ | 134.5 | ||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| REVENUE FROM SERVICES BY GEOGRAPHY | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| Second Quarter | |||||||||||
| % | CC % | ||||||||||
| 2024 | 2023 | Change | Change | ||||||||
| Americas | |||||||||||
| United States | $ | 944.2 | $ | 892.4 | 5.8 | % | 5.8 | % | |||
| Canada | 46.4 | 46.4 | (0.1 | ) | 1.8 | ||||||
| Puerto Rico | 28.2 | 27.7 | 1.6 | 1.6 | |||||||
| Mexico | 15.4 | 20.0 | (22.9 | ) | (24.8 | ) | |||||
| Total Americas Region | 1,034.2 | 986.5 | 4.8 | 4.9 | |||||||
| Europe | |||||||||||
| Switzerland | 1.0 | 56.0 | (98.2 | ) | (98.2 | ) | |||||
| France | — | 50.2 | (100.0 | ) | (100.0 | ) | |||||
| Portugal | — | 49.3 | (100.0 | ) | (100.0 | ) | |||||
| Italy | — | 16.5 | (100.0 | ) | (100.0 | ) | |||||
| Other | 9.8 | 47.6 | (79.3 | ) | (79.2 | ) | |||||
| Total Europe Region | 10.8 | 219.6 | (95.1 | ) | (95.0 | ) | |||||
| Total Asia-Pacific Region | 12.5 | 11.1 | 12.3 | 14.9 | |||||||
| Total Kelly Services, Inc. | $ | 1,057.5 | $ | 1,217.2 | (13.1 | ) | % | (13.0 | ) | % | |
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| REVENUE FROM SERVICES BY GEOGRAPHY | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| June Year to Date | |||||||||||
| % | CC % | ||||||||||
| 2024 | 2023 | Change | Change | ||||||||
| Americas | |||||||||||
| United States | $ | 1,877.8 | $ | 1,851.6 | 1.4 | % | 1.4 | % | |||
| Canada | 91.8 | 91.3 | 0.6 | 1.4 | |||||||
| Puerto Rico | 53.1 | 54.6 | (2.8 | ) | (2.8 | ) | |||||
| Mexico | 34.3 | 36.7 | (6.5 | ) | (12.2 | ) | |||||
| Total Americas Region | 2,057.0 | 2,034.2 | 1.1 | 1.1 | |||||||
| Europe | |||||||||||
| Switzerland | 2.1 | 108.9 | (98.1 | ) | (98.1 | ) | |||||
| France | — | 98.0 | (100.0 | ) | (100.0 | ) | |||||
| Portugal | — | 93.7 | (100.0 | ) | (100.0 | ) | |||||
| Italy | — | 33.4 | (100.0 | ) | (100.0 | ) | |||||
| Other | 19.5 | 95.3 | (79.5 | ) | (79.7 | ) | |||||
| Total Europe Region | 21.6 | 429.3 | (95.0 | ) | (95.0 | ) | |||||
| Total Asia-Pacific Region | 24.0 | 22.0 | 9.1 | 13.0 | |||||||
| Total Kelly Services, Inc. | $ | 2,102.6 | $ | 2,485.5 | (15.4 | ) | % | (15.4 | ) | % | |
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| Second Quarter | June Year to Date | ||||||||||||||
| SG&A Expenses: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| As reported | $ | 191.5 | $ | 232.0 | $ | 382.0 | $ | 475.4 | |||||||
| Transaction costs(4) | (1.6 | ) | — | (7.2 | ) | — | |||||||||
| Restructuring(6) | (4.3 | ) | (5.6 | ) | (6.6 | ) | (12.2 | ) | |||||||
| Adjusted SG&A expenses | $ | 185.6 | $ | 226.4 | $ | 368.2 | $ | 463.2 | |||||||
| Second Quarter | June Year to Date | ||||||||||||
| Earnings from Operations: | 2024 | 2023 | 2024 | 2023 | |||||||||
| As reported | $ | 12.2 | $ | 6.2 | $ | 39.0 | $ | 16.9 | |||||
| (Gain) loss on sale of EMEA staffing operations(1) | 10.0 | — | (1.6 | ) | — | ||||||||
| Gain on sale of assets(3) | (5.5 | ) | — | (5.5 | ) | — | |||||||
| Transaction costs(4) | 1.6 | — | 7.2 | — | |||||||||
| Asset impairment charge(5) | 5.5 | 2.4 | 5.5 | 2.4 | |||||||||
| Restructuring(6) | 4.3 | 5.6 | 6.6 | 12.2 | |||||||||
| Adjusted earnings from operations | $ | 28.1 | $ | 14.2 | $ | 51.2 | $ | 31.5 | |||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| Second Quarter | June Year to Date | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income tax expense | $ | 1.1 | $ | (1.9 | ) | $ | 5.1 | $ | (0.1 | ) | ||||||
| Taxes on gain on sale of EMEA staffing operations(1) | — | — | (1.2 | ) | — | |||||||||||
| Taxes on gain on forward contract(2) | — | — | — | — | ||||||||||||
| Taxes on gain on sale of assets(3) | (1.4 | ) | — | (1.4 | ) | — | ||||||||||
| Taxes on transaction costs(4) | 1.1 | — | 2.3 | — | ||||||||||||
| Taxes on asset impairment charge(5) | 1.4 | 0.6 | 1.4 | 0.6 | ||||||||||||
| Taxes on restructuring charges(6) | 1.1 | 1.4 | 1.7 | 3.0 | ||||||||||||
| Adjusted income tax expense | $ | 3.3 | $ | 0.1 | $ | 7.9 | $ | 3.5 | ||||||||
| Second Quarter | June Year to Date | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net earnings | $ | 4.6 | $ | 7.5 | $ | 30.4 | $ | 18.4 | ||||||||
| (Gain) loss on sale of EMEA staffing operations, net of taxes(1) | 10.0 | — | (0.4 | ) | — | |||||||||||
| Gain on forward contract, net of taxes(2) | — | — | (1.2 | ) | — | |||||||||||
| Gain on sale of assets, net of taxes(3) | (4.1 | ) | — | (4.1 | ) | — | ||||||||||
| Transaction costs, net of taxes(4) | 8.3 | — | 12.7 | — | ||||||||||||
| Asset impairment charge, net of taxes(5) | 4.1 | 1.8 | 4.1 | 1.8 | ||||||||||||
| Restructuring charges, net of taxes(6) | 3.2 | 4.2 | 4.9 | 9.2 | ||||||||||||
| Adjusted net earnings | $ | 26.1 | $ | 13.5 | $ | 46.4 | $ | 29.4 | ||||||||
| Second Quarter | June Year to Date | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Per Share | Per Share | |||||||||||||||
| Net earnings | $ | 0.12 | $ | 0.20 | $ | 0.83 | $ | 0.49 | ||||||||
| (Gain) loss on sale of EMEA staffing operations, net of taxes(1) | 0.27 | — | (0.01 | ) | — | |||||||||||
| Gain on forward contract, net of taxes(2) | — | — | (0.03 | ) | — | |||||||||||
| Gain on sale of assets, net of taxes(3) | (0.11 | ) | — | (0.11 | ) | — | ||||||||||
| Transaction costs, net of taxes(4) | 0.23 | — | 0.35 | — | ||||||||||||
| Asset impairment charge, net of taxes(5) | 0.11 | 0.05 | 0.11 | 0.05 | ||||||||||||
| Restructuring charges, net of taxes(6) | 0.09 | 0.11 | 0.13 | 0.24 | ||||||||||||
| Adjusted net earnings | $ | 0.71 | $ | 0.36 | $ | 1.26 | $ | 0.78 | ||||||||
Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| Total Adjusted EBITDA: | |||||||||||||||
| Second Quarter | June Year to Date | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earnings | $ | 4.6 | $ | 7.5 | $ | 30.4 | $ | 18.4 | |||||||
| Other (income) expense, net | (1.4 | ) | 0.6 | (3.2 | ) | (1.4 | ) | ||||||||
| Income tax expense (benefit) | 1.1 | (1.9 | ) | 5.1 | (0.1 | ) | |||||||||
| Depreciation and amortization | 12.5 | 10.2 | 22.7 | 19.7 | |||||||||||
| (Gain) loss on sale of EMEA staffing operations(1) | 10.0 | — | (1.6 | ) | — | ||||||||||
| Gain on forward contract(2) | — | — | (1.2 | ) | — | ||||||||||
| Gain on sale of assets(3) | (5.5 | ) | — | (5.5 | ) | — | |||||||||
| Transaction costs(4) | 9.4 | — | 15.0 | — | |||||||||||
| Asset impairment charge(5) | 5.5 | 2.4 | 5.5 | 2.4 | |||||||||||
| Restructuring(6) | 4.3 | 5.6 | 6.6 | 12.2 | |||||||||||
| Other, net | — | 0.2 | — | 0.2 | |||||||||||
| Adjusted EBITDA | $ | 40.5 | $ | 24.6 | $ | 73.8 | $ | 51.4 | |||||||
| Adjusted EBITDA margin | 3.8 | % | 2.0 | % | 3.5 | % | 2.1 | % | |||||||
Business Unit Adjusted EBITDA:
| Second Quarter 2024 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 6.9 | $ | 24.5 | $ | 12.7 | $ | 3.0 | $ | — | |||||||||
| Restructuring(6) | 0.3 | 0.3 | — | — | — | ||||||||||||||
| Adjusted EBITDA | $ | 7.2 | $ | 24.8 | $ | 12.7 | $ | 3.0 | $ | — | |||||||||
| Adjusted EBITDA margin | 2.0 | % | 7.5 | % | 5.1 | % | 2.5 | % | — | % | |||||||||
| Second Quarter 2023 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 3.2 | $ | 17.9 | $ | 9.3 | $ | 0.2 | $ | — | |||||||||
| Asset impairment charge(5) | 0.3 | 0.1 | — | 2.0 | — | ||||||||||||||
| Restructuring(6) | 0.3 | — | 0.3 | (0.1 | ) | — | |||||||||||||
| Adjusted EBITDA | $ | 3.8 | $ | 18.0 | $ | 9.6 | $ | 2.1 | $ | — | |||||||||
| Adjusted EBITDA margin | 1.0 | % | 6.0 | % | 4.7 | % | 2.0 | % | — | % | |||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| (In millions of dollars) | |||||||||||||||||||
| Business Unit Adjusted EBITDA (continued): | |||||||||||||||||||
| June Year to Date 2024 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 12.8 | $ | 42.7 | $ | 30.8 | $ | 1.2 | $ | — | |||||||||
| Restructuring(6) | 0.4 | 0.3 | — | 0.6 | — | ||||||||||||||
| Adjusted EBITDA | $ | 13.2 | $ | 43.0 | $ | 30.8 | $ | 1.8 | $ | — | |||||||||
| Adjusted EBITDA margin | 1.8 | % | 6.9 | % | 5.7 | % | 0.8 | % | — | % | |||||||||
| June Year to Date 2023 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 2.0 | $ | 36.4 | $ | 24.7 | $ | 0.1 | $ | (0.7 | ) | ||||||||
| Asset impairment charge(5) | 0.3 | 0.1 | — | 2.0 | — | ||||||||||||||
| Restructuring(6) | 3.3 | 0.5 | 0.4 | 0.5 | 0.6 | ||||||||||||||
| Adjusted EBITDA | $ | 5.6 | $ | 37.0 | $ | 25.1 | $ | 2.6 | $ | (0.1 | ) | ||||||||
| Adjusted EBITDA margin | 0.7 | % | 6.1 | % | 5.5 | % | 1.2 | % | — | % | |||||||||
Free Cash Flow:
| June Year to Date | |||||||
| 2024 | 2023 | ||||||
| Net cash from operating activities | $ | 32.2 | $ | 23.4 | |||
| Capital expenditures | (6.7 | ) | (9.3 | ) | |||
| Free Cash Flow | $ | 25.5 | $ | 14.1 | |||
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2024 gain on the sale of our EMEA staffing operations, the 2024 gain on sale of assets, the 2024 gain on forward contract, the 2024 transaction costs, the 2024 asset impairment charge, the 2024 restructuring charges, the 2023 asset impairment charge, and the 2023 restructuring charges are useful to understand the Company's fiscal 2024 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.
Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets.
These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(1) (Gain) loss on sale of EMEA staffing operations represents the loss as of the second quarter-end 2024 and gain as of June year-to-date 2024 as a result of the sale in January 2024.
(2) Gain on forward contract represents the gain recognized in the first quarter of 2024 for the settlement of the foreign currency forward contract in January 2024 that was entered into in 2023 relating to the sale of the EMEA staffing operations.
(3) Gain on sale of assets represents the sale of Ayers Group in the second quarter of 2024.
(4) Transaction costs in the second quarter of 2024 includes employee termination costs and transition costs directly related to the sale of the EMEA staffing operations and the acquisition of MRP. Employee termination costs and transition costs related to the sale of the EMEA staffing operations were
(5) Asset impairment charge in the second quarter of 2024 for certain right-of-use assets related to our leased headquarters facility reflects adjustments to how we are utilizing the building as part of our ongoing transformation efforts. Asset impairment charge in the second quarter of 2023 represents the impairment of right-of-use assets related to an unoccupied existing office space lease.
(6) Restructuring charges in 2024 represent a continuation of the comprehensive transformation initiative that started in the second quarter of 2023 that will further streamline the Company's operating model to enhance organizational efficiency and effectiveness. In the second quarter of 2024, these restructuring charges include
FAQ
What were Kelly's (KELYA) Q2 2024 earnings results?
How did Kelly's (KELYA) adjusted EBITDA margin perform in Q2 2024?
What was Kelly's (KELYA) adjusted EPS for Q2 2024?
Did Kelly (KELYA) declare a dividend for Q2 2024?
