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Kelly Services, Inc., also known as Kelly, is a global specialty talent solutions provider offering workforce solutions and consulting services. With operations in various sectors like financial services, IT, law, and more, the company is divided into five segments, including Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. Kelly recently acquired Motion Recruitment Partners, LLC, expanding its market-leading solutions portfolio and enhancing its focus on higher-margin, higher-growth specialty outcome-based and staffing services. The acquisition is part of Kelly's strategy to pursue inorganic investments, unlock significant capital, and optimize its operating model, aligning with its goal to provide top-quality talent solutions.
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 Education has been approved by the Missouri Department of Elementary and Secondary Education (DESE) to provide substitute teacher training. This designation allows Kelly Education to offer a 20-hour comprehensive curriculum for individuals aspiring to become substitute teachers in Missouri. The program aims to address teacher shortages and support schools with qualified substitute educators.
Key points:
- Kelly Education is one of only three approved vendors in Missouri
- The training is offered at a reduced cost of $99.99
- Curriculum covers essential areas such as instructional strategies and managing student behavior
- Applicants have 90 days to complete the training once started
- Background checks are required for new certificates or new hires
Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider, has announced its participation in the Sidoti Virtual Investor Conference on Wednesday, August 14, 2024. Key executives, including Peter Quigley (president and CEO), Olivier Thirot (EVP and CFO), and Scott Thomas (head of investor relations), will engage in one-on-one meetings during the event.
The company has made its investor presentation available on its official website, allowing interested parties to access important information about Kelly's financial performance and strategic direction. This participation in the Sidoti conference provides an opportunity for Kelly to showcase its position in the talent solutions market and engage with potential investors.
Kelly, a global specialty talent solutions provider, has announced its second-quarter 2024 earnings release and conference call schedule. The company will release its earnings before the market opens on Thursday, August 8, 2024. Kelly will also publish a financial presentation on its Investor Relations webpage.
The conference call is set for 9 a.m. ET on the same day. Investors can access the call via the internet at kellyservices.com or by phone using the toll-free number (877) 692-8955 or caller-paid number (234) 720-6979, with access code 5728672.
A recording of the call will be available after 1:30 p.m. ET on August 8, 2024, accessible by phone or on the company's website.
Kelly (Nasdaq: KELYA, KELYB) has finalized the sale of Ayers Group, a division of KellyOCG, to Keystone Partners. Ayers Group specializes in outplacement, executive coaching, and leadership development. The financial terms of the transaction were not disclosed. This sale is part of KellyOCG’s strategy to focus on global recruitment process outsourcing (RPO) and managed service provider (MSP) solutions. The move aligns with Kelly's broader goal to optimize its operations and reallocate capital towards higher-margin, growth-oriented specialties. Recent strategic actions by Kelly include divesting European staffing operations, monetizing non-core assets, and reducing ownership in PersolKelly.
Keystone Partners announced the acquisition of The Ayers Group from Kelly Services on June 12, 2024. This strategic move aims to enhance Keystone's offerings in career management and leadership transformation within the New York metropolitan area. Founded in 1975, The Ayers Group is recognized for its expertise in executive coaching and organizational development. The integration of Ayers' experienced team and strong client relationships is expected to bolster Keystone's capabilities. Tim Baldwin, CEO of Keystone Partners, emphasized the synergy between the companies' values and missions. Larry Fisher of The Ayers Group also expressed enthusiasm for the merger's potential benefits for clients.
The 2024 Kelly Global Re:work Report reveals that poor workforce planning is hindering business growth, with 54% of executives identifying it as a primary issue. Despite turning to AI and automation, many organizations struggle to implement these technologies effectively and neglect proper employee training. The report shows 47% of executives miss business opportunities due to a lack of talent, and 42% fail to unlock their workforce's full potential. Employees cite a lack of skills development and career progression as main frustrations, with women and minority groups notably disadvantaged. While 64% of organizations invest in AI to boost productivity, only 36% of employees feel positive about it. The survey introduces the Workforce Resilience Index, highlighting Resilience Leaders who excel in revenue, profitability, customer satisfaction, recruitment, and retention, with Norway, Sweden, and Germany leading the way.
Kelly has completed its acquisition of Motion Recruitment Partners (MRP), a move expected to boost EBITDA margins. MRP will continue operating under its existing brands. The acquisition aims to enhance Kelly's staffing and consulting solutions in technology, telecommunications, and government sectors in North America, as well as its global RPO solutions. The purchase price was $425 million, with an additional $60 million contingent on certain performance criteria by March 2025. A webcast detailing the acquisition will be held on June 18, 2024.
Kelly reported Q1 2024 revenue of $1.05 billion, a 17.6% decrease due to sale of European staffing operations. Operating earnings were $26.8 million, up 34% on an adjusted basis. Adjusted EBITDA margin increased to 3.2%. Expect further margin expansion from acquiring MRP in Q2 2024. EPS improved to $0.70 from $0.29 in Q1 2023. Declared dividend of $0.075 per share.
Kelly (Nasdaq: KELYA, KELYB) will be participating in the 18th Annual Barrington Research Virtual Spring Investment Conference on May 16, 2024. The company's key executives will engage in one-on-one meetings, and their investor presentation is accessible on their website.
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