Kelly (Nasdaq: KELYA) (Nasdaq: KELYB), a leading specialty talent
solutions provider, today announced results for the first quarter
of 2021.
Peter Quigley, president and chief executive officer, announced
revenue for the first quarter of 2021 totaled $1.2 billion, a 4.4%
decrease, or down 5.5% in constant currency, compared to the
corresponding quarter of 2020. Revenue declined year-over-year in
the quarter as the effects of the COVID-19 crisis moderated but
continued to have an impact on customer demand and the supply of
available talent.
Earnings from operations in the first quarter of 2021 totaled
$10.6 million, compared to a loss of $111.8 million reported in the
first quarter of 2020. The 2020 first-quarter results include a
$147.7 million goodwill impairment charge and an $8.7 million
restructuring charge, partially offset by a $32.1 million gain on
sale of assets. On an adjusted basis, 2020 earnings from operations
were $12.5 million.
Diluted earnings per share in the first quarter of 2021 were
$0.64 compared to a loss of $3.91 per share in the first quarter of
2020. Included in the earnings per share in the first quarter of
2021 is a non-cash gain, net of tax, on Kelly’s investment in
Persol Holdings common stock of $0.52. Included in the loss per
share in the first quarter of 2020 is a $3.18 per share goodwill
impairment charge, net of tax, a $1.38 per share loss from a
non-cash loss on Kelly’s investment in Persol Holdings common
stock, net of tax, and a $0.17 restructuring charge, net of tax,
partially offset by a $0.61 gain on sale of assets, net of tax. On
an adjusted basis, earnings per share were $0.12 in the first
quarter of 2021 compared to $0.20 in the corresponding quarter of
2020.
“We’re seeing strong demand across all of our operating
segments. This translated into sustained, sequential revenue
improvements in our Education, OCG, International, and Science,
Engineering & Technology business segments. We’re also seeing
improving revenue growth rates in our Professional & Industrial
segment and are taking steps to capture even more of the stronger
demand, which now exceeds pre-pandemic levels,” said Quigley.
“Every segment added numerous wins to their portfolio in the first
quarter, and we're pleased with the overall progress and healthy
sales pipelines across our specialties. We're moving forward in
this recovery with optimism, well-positioned to capture organic
specialty growth and committed to a bold M&A strategy that
captures inorganic growth, as evidenced by our recent Softworld
acquisition, which is the largest deal in Kelly’s history.”
In conjunction with its first 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 May 13 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
5728672After the prompt, please enter
“#”A recording of the conference call will be available
after 2:30 p.m. ET on May 13, 2021 at (866) 207-1041 (toll-free)
and (402) 970-0847 (caller-paid). The access code is 2456495#. 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 factors include, but are not limited to, changing market and
economic conditions, the recent novel coronavirus (COVID-19)
outbreak, competitive market pressures including pricing and
technology introductions and disruptions, disruption in the labor
market and weakened demand for human capital resulting from
technological advances, competition law risks, the impact of
changes in laws and regulations (including federal, state and
international tax laws), unexpected changes in claim trends on
workers’ compensation, unemployment, disability and medical benefit
plans, or the risk of additional tax liabilities in excess of our
estimates, our ability to achieve our business strategy, our
ability to successfully develop new service offerings, material
changes in demand from or loss of large corporate customers as well
as changes in their buying practices, risks particular to doing
business with government or government contractors, the risk of
damage to our brand, our exposure to risks associated with services
outside traditional staffing, including business process
outsourcing, services of licensed professionals and services
connecting talent to independent work, our increasing dependency on
third parties for the execution of critical functions, our ability
to effectively implement and manage our information technology
strategy, the risks associated with past and future acquisitions,
including risk of related impairment of goodwill and intangible
assets, exposure to risks associated with investments in equity
affiliates including PersolKelly Pte. Ltd., risks associated with
conducting business in foreign countries, including foreign
currency fluctuations, the exposure to potential market and
currency exchange risks relating to our investment in Persol
Holdings, risks associated with violations of anti-corruption,
trade protection and other laws and regulations, availability of
qualified full-time employees, availability of temporary workers
with appropriate skills required by customers, liabilities for
employment-related claims and losses, including class action
lawsuits and collective actions, our ability to sustain critical
business applications through our key data centers, risks arising
from failure to preserve the privacy of information entrusted to us
or to meet our obligations under global privacy laws, the risk of
cyberattacks or other breaches of network or information technology
security, our ability to realize value from our tax credit and net
operating loss carryforwards, our ability to maintain specified
financial covenants in our bank facilities to continue to access
credit markets, and other risks, uncertainties and factors
discussed in this release and in the Company’s filings with the
Securities and Exchange Commission. Actual results may differ
materially from any forward-looking statements contained herein,
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) connects talented
people to companies in need of their skills in areas including
Science, Engineering, Education, Office, Contact Center, Light
Industrial, and more. We’re always thinking about what’s next in
the evolving world of work, and we help people ditch the script on
old ways of thinking and embrace the value of all workstyles in the
workplace. We directly employ nearly 370,000 people around the
world, and we connect thousands more with work through our global
network of talent suppliers and partners in our outsourcing and
consulting practice. Revenue in 2020 was $4.5 billion. Visit
kellyservices.com and let us help with what’s next for you.
MEDIA CONTACT: |
|
|
ANALYST CONTACT: |
Jane
Stehney |
|
|
James
Polehna |
(248)
574-9800 |
|
|
(248)
244-4586 |
stehnja@kellyservices.com |
|
|
james.polehna@kellyservices.com |
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF EARNINGS |
FOR THE 13 WEEKS ENDED APRIL 4, 2021 AND MARCH 29,
2020 |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
1,205.9 |
|
$ |
1,261.1 |
|
$ |
(55.2 |
) |
|
(4.4 |
)% |
|
(5.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
992.6 |
|
|
1,037.8 |
|
|
(45.2 |
) |
|
(4.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
213.3 |
|
|
223.3 |
|
|
(10.0 |
) |
|
(4.5 |
) |
|
(5.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
202.7 |
|
|
219.5 |
|
|
(16.8 |
) |
|
(7.7 |
) |
|
(8.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charge |
|
— |
|
|
147.7 |
|
|
(147.7 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
— |
|
|
(32.1 |
) |
|
32.1 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations |
|
10.6 |
|
|
(111.8 |
) |
|
122.4 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on investment in
Persol Holdings |
|
30.0 |
|
|
(77.8 |
) |
|
107.8 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
(3.4 |
) |
|
1.7 |
|
|
(5.1 |
) |
|
(308.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before
taxes and equity in net earnings (loss) of affiliate |
|
37.2 |
|
|
(187.9 |
) |
|
225.1 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
10.5 |
|
|
(36.2 |
) |
|
46.7 |
|
|
129.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate |
|
26.7 |
|
|
(151.7 |
) |
|
178.4 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings (loss)
of affiliate |
|
(1.1 |
) |
|
(1.5 |
) |
|
0.4 |
|
|
29.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) |
$ |
25.6 |
|
$ |
(153.2 |
) |
$ |
178.8 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
$ |
0.65 |
|
$ |
(3.91 |
) |
$ |
4.56 |
|
|
NM |
|
|
|
Diluted earnings
(loss) per share |
$ |
0.64 |
|
$ |
(3.91 |
) |
$ |
4.55 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement revenue
(included in revenue from services) |
$ |
16.0 |
|
$ |
12.2 |
|
$ |
3.8 |
|
|
29.9 |
% |
|
27.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
17.7 |
% |
|
17.7 |
% |
|
— |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion rate |
|
5.0 |
|
|
(50.1 |
) |
|
55.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Return: |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations |
|
0.9 |
|
|
(8.9 |
) |
|
9.8 |
|
|
|
|
|
Net earnings (loss) |
|
2.1 |
|
|
(12.1 |
) |
|
14.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
28.3 |
% |
|
19.3 |
% |
|
9.0 |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding (millions): |
|
|
|
|
|
|
|
|
|
|
Basic |
|
39.3 |
|
|
39.2 |
|
|
|
|
|
|
|
Diluted |
|
39.5 |
|
|
39.2 |
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS BY SEGMENT |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
2021 |
|
2020 |
|
Change |
|
Change |
Professional &
Industrial |
|
|
|
|
|
|
|
|
Revenue from services |
$ |
467.6 |
|
$ |
493.8 |
|
|
(5.3 |
)% |
|
(5.6 |
)% |
Gross profit |
|
75.9 |
|
|
85.1 |
|
|
(10.7 |
) |
|
(11.0 |
) |
SG&A expenses excluding restructuring charges |
|
69.4 |
|
|
76.1 |
|
|
(8.8 |
) |
|
(9.1 |
) |
Restructuring charges |
|
— |
|
|
4.4 |
|
|
NM |
|
|
NM |
|
Total SG&A expenses |
|
69.4 |
|
|
80.5 |
|
|
(13.8 |
) |
|
(14.0 |
) |
Earnings (loss) from operations |
|
6.5 |
|
|
4.6 |
|
|
42.3 |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
6.5 |
|
|
9.0 |
|
|
(27.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
16.2 |
% |
|
17.2 |
% |
|
(1.0 |
)pts. |
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology |
|
|
|
|
|
|
|
|
Revenue from services |
$ |
254.7 |
|
$ |
270.2 |
|
|
(5.7 |
)% |
|
(5.9 |
)% |
Gross profit |
|
53.2 |
|
|
54.7 |
|
|
(2.8 |
) |
|
(2.9 |
) |
SG&A expenses excluding restructuring charges |
|
35.7 |
|
|
36.0 |
|
|
(0.7 |
) |
|
(0.9 |
) |
Restructuring charges |
|
— |
|
|
0.5 |
|
|
NM |
|
|
NM |
|
Total SG&A expenses |
|
35.7 |
|
|
36.5 |
|
|
(2.1 |
) |
|
(2.3 |
) |
Earnings (loss) from operations |
|
17.5 |
|
|
18.2 |
|
|
(4.2 |
) |
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
17.5 |
|
|
18.7 |
|
|
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
20.9 |
% |
|
20.3 |
% |
|
0.6 |
pts. |
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
Revenue from services |
$ |
111.6 |
|
$ |
142.5 |
|
|
(21.7 |
)% |
|
(21.7 |
)% |
Gross profit |
|
17.2 |
|
|
20.4 |
|
|
(15.7 |
) |
|
(15.7 |
) |
SG&A expenses excluding restructuring charges |
|
14.2 |
|
|
15.7 |
|
|
(9.6 |
) |
|
(9.6 |
) |
Restructuring charges |
|
— |
|
|
0.9 |
|
|
NM |
|
|
NM |
|
Total SG&A expenses |
|
14.2 |
|
|
16.6 |
|
|
(14.5 |
) |
|
(14.5 |
) |
Earnings (loss) from operations |
|
3.0 |
|
|
3.8 |
|
|
(21.2 |
) |
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
3.0 |
|
|
4.7 |
|
|
(36.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
15.4 |
% |
|
14.3 |
% |
|
1.1 |
pts. |
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting |
|
|
|
|
|
|
|
|
Revenue from services |
$ |
99.3 |
|
$ |
89.5 |
|
|
11.0 |
% |
|
9.5 |
% |
Gross profit |
|
31.3 |
|
|
28.8 |
|
|
8.8 |
|
|
6.1 |
|
SG&A expenses excluding restructuring charges |
|
28.4 |
|
|
28.6 |
|
|
(0.4 |
) |
|
(2.4 |
) |
Restructuring charges |
|
— |
|
|
— |
|
|
NM |
|
|
NM |
|
Total SG&A expenses |
|
28.4 |
|
|
28.6 |
|
|
(0.6 |
) |
|
(2.6 |
) |
Earnings (loss) from operations |
|
2.9 |
|
|
0.2 |
|
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
2.9 |
|
|
0.2 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
31.5 |
% |
|
32.2 |
% |
|
(0.7 |
)pts. |
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
Revenue from services |
$ |
272.9 |
|
$ |
265.2 |
|
|
2.9 |
% |
|
(1.1 |
)% |
Gross profit |
|
35.7 |
|
|
34.3 |
|
|
4.1 |
|
|
(0.7 |
) |
SG&A expenses excluding restructuring charges |
|
33.1 |
|
|
32.1 |
|
|
3.0 |
|
|
(2.1 |
) |
Restructuring charges |
|
— |
|
|
1.1 |
|
|
NM |
|
|
NM |
|
Total SG&A expenses |
|
33.1 |
|
|
33.2 |
|
|
(0.4 |
) |
|
(5.2 |
) |
Earnings (loss) from operations |
|
2.6 |
|
|
1.1 |
|
|
135.1 |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
2.6 |
|
|
2.2 |
|
|
19.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
13.1 |
% |
|
12.9 |
% |
|
0.2 |
pts. |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
April 4, 2021 |
|
January 3, 2021 |
|
March 29, 2020 |
Current
Assets |
|
|
|
|
|
|
Cash and equivalents |
$ |
239.4 |
|
$ |
223.0 |
|
$ |
48.3 |
|
Trade accounts receivable, less allowances of |
|
|
|
|
|
|
$12.6, $13.3, and $11.1, respectively |
|
1,279.7 |
|
|
1,265.2 |
|
|
1,236.1 |
|
Prepaid expenses and other current assets |
|
76.5 |
|
|
61.4 |
|
|
81.4 |
|
Total current assets |
|
1,595.6 |
|
|
1,549.6 |
|
|
1,365.8 |
|
|
|
|
|
|
|
|
Noncurrent
Assets |
|
|
|
|
|
|
Property and equipment, net |
|
38.9 |
|
|
41.0 |
|
|
38.1 |
|
Operating lease right-of-use assets |
|
79.0 |
|
|
83.2 |
|
|
89.2 |
|
Deferred taxes |
|
286.4 |
|
|
282.0 |
|
|
249.5 |
|
Goodwill, net |
|
3.5 |
|
|
3.5 |
|
|
— |
|
Investment in Persol Holdings |
|
181.7 |
|
|
164.2 |
|
|
96.8 |
|
Investment in equity affiliate |
|
118.7 |
|
|
118.5 |
|
|
116.3 |
|
Other assets |
|
306.3 |
|
|
319.9 |
|
|
306.1 |
|
Total noncurrent assets |
|
1,014.5 |
|
|
1,012.3 |
|
|
896.0 |
|
|
|
|
|
|
|
|
Total
Assets |
$ |
2,610.1 |
|
$ |
2,561.9 |
|
$ |
2,261.8 |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
Short-term borrowings |
$ |
1.1 |
|
$ |
0.3 |
|
$ |
1.7 |
|
Accounts payable and accrued liabilities |
|
554.3 |
|
|
536.8 |
|
|
475.5 |
|
Operating lease liabilities |
|
18.8 |
|
|
19.6 |
|
|
19.2 |
|
Accrued payroll and related taxes |
|
309.9 |
|
|
293.0 |
|
|
259.7 |
|
Accrued workers' compensation and other claims |
|
21.9 |
|
|
22.7 |
|
|
26.1 |
|
Income and other taxes |
|
56.9 |
|
|
53.2 |
|
|
60.6 |
|
Total current liabilities |
|
962.9 |
|
|
925.6 |
|
|
842.8 |
|
|
|
|
|
|
|
|
Noncurrent
Liabilities |
|
|
|
|
|
|
Operating lease liabilities |
|
63.9 |
|
|
67.5 |
|
|
72.7 |
|
Accrued payroll and related taxes |
|
58.5 |
|
|
58.5 |
|
|
— |
|
Accrued workers' compensation and other claims |
|
40.7 |
|
|
42.2 |
|
|
46.4 |
|
Accrued retirement benefits |
|
204.7 |
|
|
205.8 |
|
|
164.5 |
|
Other long-term liabilities |
|
63.7 |
|
|
59.3 |
|
|
35.3 |
|
Total noncurrent
liabilities |
|
431.5 |
|
|
433.3 |
|
|
318.9 |
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
Common stock |
|
40.1 |
|
|
40.1 |
|
|
40.1 |
|
Treasury stock |
|
(15.7 |
) |
|
(17.1 |
) |
|
(18.0 |
) |
Paid-in capital |
|
20.6 |
|
|
21.3 |
|
|
19.5 |
|
Earnings invested in the business |
|
1,188.5 |
|
|
1,162.9 |
|
|
1,081.7 |
|
Accumulated other comprehensive income (loss) |
|
(17.8 |
) |
|
(4.2 |
) |
|
(23.2 |
) |
Total stockholders'
equity |
|
1,215.7 |
|
|
1,203.0 |
|
|
1,100.1 |
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
$ |
2,610.1 |
|
$ |
2,561.9 |
|
$ |
2,261.8 |
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
Working Capital |
$ |
632.7 |
|
$ |
624.0 |
|
$ |
523.0 |
|
Current Ratio |
|
1.7 |
|
|
1.7 |
|
|
1.6 |
|
Debt-to-capital % |
|
0.1 |
% |
|
— |
% |
|
0.2 |
% |
Global Days Sales Outstanding |
|
60 |
|
|
64 |
|
|
59 |
|
Year-to-Date Free Cash Flow |
$ |
7.8 |
|
$ |
170.5 |
|
$ |
5.4 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE 13 WEEKS ENDED APRIL 4, 2021 AND MARCH 29,
2020 |
(UNAUDITED) |
(In millions of dollars) |
|
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
Net earnings (loss) |
$ |
25.6 |
|
$ |
(153.2 |
) |
Adjustments to reconcile net earnings (loss) to net cash from
operating activities: |
|
|
|
|
Goodwill impairment charge |
|
— |
|
|
147.7 |
|
Deferred income taxes on goodwill impairment charge |
|
— |
|
|
(23.0 |
) |
Depreciation and amortization |
|
5.9 |
|
|
6.0 |
|
Operating lease asset amortization |
|
5.2 |
|
|
5.3 |
|
Provision for credit losses and sales allowances |
|
(0.1 |
) |
|
(0.4 |
) |
Stock-based compensation |
|
1.4 |
|
|
1.2 |
|
(Gain) loss on investment in Persol Holdings |
|
(30.0 |
) |
|
77.8 |
|
Gain on sale of assets |
|
— |
|
|
(32.1 |
) |
Equity in net (earnings) loss of PersolKelly Pte. Ltd. |
|
1.1 |
|
|
1.5 |
|
Other, net |
|
1.3 |
|
|
0.7 |
|
Changes in operating assets and liabilities, net of
acquisitions |
|
0.1 |
|
|
(23.1 |
) |
|
|
|
|
|
Net cash from operating activities |
|
10.5 |
|
|
8.4 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital expenditures |
|
(2.7 |
) |
|
(3.0 |
) |
Proceeds from company-owned life insurance |
|
10.4 |
|
|
— |
|
Proceeds from sale of assets |
|
— |
|
|
55.5 |
|
Acquisition of companies, net of cash received |
|
— |
|
|
(36.3 |
) |
Investment in equity securities |
|
— |
|
|
(0.3 |
) |
Other investing activities |
|
0.2 |
|
|
— |
|
|
|
|
|
|
Net cash from investing activities |
|
7.9 |
|
|
15.9 |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net change in short-term borrowings |
|
0.8 |
|
|
(0.1 |
) |
Financing lease payments |
|
(0.2 |
) |
|
(0.3 |
) |
Payments of tax withholding for stock awards |
|
(0.5 |
) |
|
(1.1 |
) |
Dividend payments |
|
— |
|
|
(3.0 |
) |
Other financing
activities |
|
— |
|
|
(0.1 |
) |
|
|
|
|
|
Net cash from (used in) financing activities |
|
0.1 |
|
|
(4.6 |
) |
|
|
|
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash |
|
(1.4 |
) |
|
2.8 |
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash |
|
17.1 |
|
|
22.5 |
|
Cash, cash equivalents
and restricted cash at beginning of period |
|
228.1 |
|
|
31.0 |
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
245.2 |
|
$ |
53.5 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
REVENUE FROM SERVICES BY GEOGRAPHY |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
United States |
$ |
858.5 |
|
$ |
928.5 |
|
|
(7.5 |
)% |
|
(7.5 |
)% |
Mexico |
|
34.6 |
|
|
28.7 |
|
|
20.6 |
|
|
24.6 |
|
Canada |
|
34.1 |
|
|
32.8 |
|
|
3.9 |
|
|
(1.8 |
) |
Puerto Rico |
|
24.2 |
|
|
17.7 |
|
|
36.4 |
|
|
36.4 |
|
Brazil |
|
— |
|
|
9.1 |
|
|
NM |
|
|
NM |
|
Total Americas
Region |
|
951.4 |
|
|
1,016.8 |
|
|
(6.4 |
) |
|
(6.5 |
) |
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
France |
|
54.3 |
|
|
52.5 |
|
|
3.4 |
|
|
(5.2 |
) |
Switzerland |
|
52.7 |
|
|
44.2 |
|
|
19.2 |
|
|
11.8 |
|
Portugal |
|
43.7 |
|
|
43.6 |
|
|
0.2 |
|
|
(8.1 |
) |
Russia |
|
32.6 |
|
|
32.1 |
|
|
1.5 |
|
|
14.1 |
|
Italy |
|
18.1 |
|
|
14.7 |
|
|
22.9 |
|
|
12.7 |
|
United Kingdom |
|
17.0 |
|
|
22.3 |
|
|
(23.7 |
) |
|
(29.1 |
) |
Germany |
|
7.1 |
|
|
8.0 |
|
|
(11.4 |
) |
|
(18.8 |
) |
Ireland |
|
5.1 |
|
|
5.0 |
|
|
2.2 |
|
|
(6.3 |
) |
Other |
|
15.6 |
|
|
15.2 |
|
|
2.7 |
|
|
(4.0 |
) |
Total Europe
Region |
|
246.2 |
|
|
237.6 |
|
|
3.6 |
|
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region |
|
8.3 |
|
|
6.7 |
|
|
24.9 |
|
|
12.8 |
|
|
|
|
|
|
|
|
|
|
Total Kelly Services,
Inc. |
$ |
1,205.9 |
|
$ |
1,261.1 |
|
|
(4.4 |
)% |
% |
(5.5 |
)% |
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
FIRST QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
2021 |
|
2020 |
SG&A
Expenses: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
69.4 |
|
|
$ |
76.1 |
|
Science, Engineering &
Technology |
35.7 |
|
|
36.0 |
|
Education |
14.2 |
|
|
15.7 |
|
Outsourcing &
Consulting |
28.4 |
|
|
28.6 |
|
International |
33.1 |
|
|
32.1 |
|
Corporate |
21.9 |
|
|
22.3 |
|
Total Company |
$ |
202.7 |
|
|
$ |
210.8 |
|
|
2021 |
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
6.5 |
|
|
$ |
9.0 |
|
Science, Engineering &
Technology |
17.5 |
|
|
18.7 |
|
Education |
3.0 |
|
|
4.7 |
|
Outsourcing &
Consulting |
2.9 |
|
|
0.2 |
|
International |
2.6 |
|
|
2.2 |
|
Corporate |
(21.9 |
) |
|
(22.3 |
) |
Total Company |
$ |
10.6 |
|
|
$ |
12.5 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
FIRST QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
2020 |
SG&A
Expenses: |
As Reported |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
80.5 |
|
|
$ |
(4.4 |
) |
|
$ |
76.1 |
|
Science, Engineering &
Technology |
36.5 |
|
|
(0.5 |
) |
|
36.0 |
|
Education |
16.6 |
|
|
(0.9 |
) |
|
15.7 |
|
Outsourcing &
Consulting |
28.6 |
|
|
— |
|
|
28.6 |
|
International |
33.2 |
|
|
(1.1 |
) |
|
32.1 |
|
Corporate |
24.1 |
|
|
(1.8 |
) |
|
22.3 |
|
Total Company |
$ |
219.5 |
|
|
$ |
(8.7 |
) |
|
$ |
210.8 |
|
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Goodwill Impairment(1) |
|
Gain on sale of assets(3) |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
4.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4.4 |
|
|
$ |
9.0 |
|
Science, Engineering &
Technology |
18.2 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
18.7 |
|
Education |
3.8 |
|
|
— |
|
|
— |
|
|
0.9 |
|
|
4.7 |
|
Outsourcing &
Consulting |
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
International |
1.1 |
|
|
— |
|
|
— |
|
|
1.1 |
|
|
2.2 |
|
Corporate |
(139.7 |
) |
|
147.7 |
|
|
(32.1 |
) |
|
1.8 |
|
|
(22.3 |
) |
Total Company |
$ |
(111.8 |
) |
|
$ |
147.7 |
|
|
$ |
(32.1 |
) |
|
$ |
8.7 |
|
|
$ |
12.5 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES
(continued) |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
2021 |
|
2020 |
Income tax expense (benefit) |
|
$ |
10.5 |
|
|
$ |
(36.2 |
) |
Taxes on goodwill impairment
charge(1) |
|
— |
|
|
23.0 |
|
Taxes on investment in Persol
Holdings(2) |
|
(9.2 |
) |
|
23.8 |
|
Taxes on gain on sale of
assets(3) |
|
— |
|
|
(8.1 |
) |
Taxes on restructuring
charges(4) |
|
— |
|
|
2.2 |
|
Adjusted income tax expense
(benefit) |
|
$ |
1.3 |
|
|
$ |
4.7 |
|
|
|
|
|
|
|
|
First Quarter |
|
|
2021 |
|
2020 |
Net earnings (loss) |
|
$ |
25.6 |
|
|
$ |
(153.2 |
) |
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
124.7 |
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(20.8 |
) |
|
54.0 |
|
Gain on sale of assets, net of
taxes(3) |
|
— |
|
|
(24.0 |
) |
Restructuring charges, net of
taxes(4) |
|
— |
|
|
6.5 |
|
Adjusted net earnings |
|
$ |
4.8 |
|
|
$ |
8.0 |
|
|
|
|
|
|
|
|
First Quarter |
|
|
2021 |
|
2020 |
|
|
Per Share |
Net earnings (loss) |
|
$ |
0.64 |
|
|
$ |
(3.91 |
) |
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
3.18 |
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(0.52 |
) |
|
1.38 |
|
Gain on sale of assets, net of
taxes(3) |
|
— |
|
|
(0.61 |
) |
Restructuring charges, net of
taxes(4) |
|
— |
|
|
0.17 |
|
Adjusted net earnings |
|
$ |
0.12 |
|
|
$ |
0.20 |
|
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
SUBSIDIARIESRECONCILIATION OF NON-GAAP
MEASURES(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted
Accounting Principles) information excluding the 2020 goodwill
impairment charge, the 2021 and 2020 gains and losses on the
investment in Persol Holdings, the 2020 gain on sale of assets and
the 2020 restructuring charges, are useful to understand the
Company's fiscal 2021 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.
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) The goodwill impairment charge is the result of an interim
impairment test the Company performed during the first quarter of
2020, due to a triggering event caused by a decline in the
Company's common stock price.
(2) The gains and losses on the investment in Persol Holdings
represent the change in fair value of the investment during the
period presented and the related tax expense and benefit.
(3) Gain on sale of assets in 2020 primarily represents the
excess of the proceeds over the cost of the headquarters properties
sold during the first quarter of 2020.
(4) Restructuring charges in 2020 represent severance costs and
lease terminations in preparation for the new operating model
adopted in the third quarter of 2020.
Kelly Services (NASDAQ:KELYA)
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Kelly Services (NASDAQ:KELYA)
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De Juil 2023 à Juil 2024