Kelly (Nasdaq: KELYA) (Nasdaq: KELYB), a leading specialty talent
solutions provider, today announced results for the second quarter
of 2021.
Peter Quigley, president and chief executive officer, announced
revenue for the second quarter of 2021 totaled $1.3 billion, a
29.0% increase compared to the corresponding quarter of 2020.
Revenue improved year-over-year in the quarter reflecting increased
customer demand compared to the COVID-19-impacted prior year
period.
Earnings from operations in the second quarter of 2021 totaled
$13.7 million, compared to earnings of $11.1 million reported in
the second quarter of 2020.
Diluted earnings per share in the second quarter of 2021 were
$0.60 compared to $1.04 per share in the second quarter of 2020.
Included in the earnings per share is a non-cash gain per share,
net of tax, on Kelly’s investment in Persol Holdings common stock
of $0.11 in the second quarter of 2021 and $0.52 in the second
quarter of 2020. On an adjusted basis, earnings per share were
$0.49 in the second quarter of 2021 compared to $0.51 in the
corresponding quarter of 2020.
“All five of our operating segments—Professional &
Industrial (P&I); Science, Engineering & Technology (SET);
Education; OCG; and International—delivered organic year-over-year
revenue growth in the second quarter as the recovery gained
momentum,” said Quigley. “OCG continues to exceed pre-COVID growth
rates; Education exited the quarter on track with 2019 revenue; our
International and SET segments delivered solid specialty growth;
and our Softworld acquisition is already delivering top- and
bottom-line results for the enterprise. Demand is strong in our
P&I segment, though it will take longer to fully recover. We’re
encouraged by the healthy sales pipelines and new wins we're seeing
across all of our businesses. Our reinstatement of a dividend for
the quarter reflects the progress we're making with our
specialization and M&A strategies, and our confidence in the
economic recovery. Kelly is well-positioned for the future and
ready for what’s next.”
Kelly also reported that on August 11, its board of directors
declared a dividend of $0.05 per share. The dividend is payable on
September 7, 2021 to stockholders of record as of the close of
business on August 25, 2021.
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 12 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 August 12, 2021, at (866) 207-1041 (toll-free) and (402)
970-0847 (caller-paid). The access code is 8454029#. 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: |
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|
ANALYST CONTACT: |
Jane
Stehney |
|
|
James
Polehna |
(248)
765-6864 |
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|
(248)
244-4586 |
stehnja@kellyservices.com |
|
|
james.polehna@kellyservices.com |
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF EARNINGS |
FOR THE 13 WEEKS ENDED JULY 4, 2021 AND JUNE 28,
2020 |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
1,258.1 |
|
$ |
975.3 |
|
$ |
282.8 |
|
|
29.0 |
|
% |
26.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
1,027.1 |
|
|
786.1 |
|
|
241.0 |
|
|
30.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
231.0 |
|
|
189.2 |
|
|
41.8 |
|
|
22.1 |
|
|
19.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selling, general and
administrative expenses |
|
217.3 |
|
|
178.1 |
|
|
39.2 |
|
|
21.9 |
|
|
19.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations |
|
13.7 |
|
|
11.1 |
|
|
2.6 |
|
|
24.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on investment in
Persol Holdings |
|
6.3 |
|
|
29.6 |
|
|
(23.3 |
) |
|
(78.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
(0.3 |
) |
|
2.6 |
|
|
(2.9 |
) |
|
(109.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before
taxes and equity in net earnings (loss) of affiliate |
|
19.7 |
|
|
43.3 |
|
|
(23.6 |
) |
|
(54.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
(2.6 |
) |
|
0.9 |
|
|
(3.5 |
) |
|
(406.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate |
|
22.3 |
|
|
42.4 |
|
|
(20.1 |
) |
|
(47.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings (loss)
of affiliate |
|
1.7 |
|
|
(1.3 |
) |
|
3.0 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) |
$ |
24.0 |
|
$ |
41.1 |
|
$ |
(17.1 |
) |
|
(41.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
$ |
0.60 |
|
$ |
1.04 |
|
$ |
(0.44 |
) |
|
(42.3 |
) |
|
|
|
Diluted earnings
(loss) per share |
$ |
0.60 |
|
$ |
1.04 |
|
$ |
(0.44 |
) |
|
(42.3 |
) |
|
|
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|
|
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STATISTICS: |
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|
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|
|
|
|
|
|
|
|
Permanent placement revenue
(included in revenue from services) |
$ |
18.6 |
|
$ |
7.6 |
|
$ |
11.0 |
|
|
146.1 |
|
% |
139.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
18.4 |
|
% |
19.4 |
|
% |
(1.0 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion rate |
|
5.9 |
|
% |
5.8 |
|
% |
0.1 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
22.2 |
|
$ |
16.9 |
|
$ |
5.3 |
|
|
|
|
|
|
Adjusted EBITDA margin |
|
1.8 |
|
% |
1.7 |
|
% |
0.1 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
(13.5 |
) |
% |
2.0 |
|
% |
(15.5 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding (millions): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
39.4 |
|
|
39.3 |
|
|
|
|
|
|
|
|
Diluted |
|
39.5 |
|
|
39.4 |
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF EARNINGS |
FOR THE 26 WEEKS ENDED JULY 4, 2021 AND JUNE 28,
2020 |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
2,464.0 |
|
$ |
2,236.4 |
|
$ |
227.6 |
|
|
10.2 |
|
% |
8.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
2,019.7 |
|
|
1,823.9 |
|
|
195.8 |
|
|
10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
444.3 |
|
|
412.5 |
|
|
31.8 |
|
|
7.7 |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
420.0 |
|
|
397.6 |
|
|
22.4 |
|
|
5.6 |
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charge |
|
— |
|
|
147.7 |
|
|
(147.7 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
— |
|
|
(32.1 |
) |
|
32.1 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations |
|
24.3 |
|
|
(100.7 |
) |
|
125.0 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on investment in
Persol Holdings |
|
36.3 |
|
|
(48.2 |
) |
|
84.5 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
(3.7 |
) |
|
4.3 |
|
|
(8.0 |
) |
|
(185.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before
taxes and equity in net earnings (loss) of affiliate |
|
56.9 |
|
|
(144.6 |
) |
|
201.5 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
7.9 |
|
|
(35.3 |
) |
|
43.2 |
|
|
122.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate |
|
49.0 |
|
|
(109.3 |
) |
|
158.3 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings (loss)
of affiliate |
|
0.6 |
|
|
(2.8 |
) |
|
3.4 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) |
$ |
49.6 |
|
$ |
(112.1 |
) |
$ |
161.7 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
$ |
1.25 |
|
$ |
(2.86 |
) |
$ |
4.11 |
|
|
NM |
|
|
|
Diluted earnings
(loss) per share |
$ |
1.25 |
|
$ |
(2.86 |
) |
$ |
4.11 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement revenue
(included in revenue from services) |
$ |
34.6 |
|
$ |
19.8 |
|
$ |
14.8 |
|
|
74.1 |
|
% |
70.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
18.0 |
|
% |
18.4 |
|
% |
(0.4 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion rate |
|
5.5 |
|
% |
(24.4 |
) |
% |
29.9 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
39.1 |
|
$ |
35.4 |
|
$ |
3.7 |
|
|
|
|
|
|
Adjusted EBITDA margin |
|
1.6 |
|
% |
1.6 |
|
% |
— |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
13.8 |
|
% |
24.5 |
|
% |
(10.7 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding (millions): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
39.4 |
|
|
39.2 |
|
|
|
|
|
|
|
|
Diluted |
|
39.5 |
|
|
39.2 |
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS BY SEGMENT |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
|
2020 |
|
Change |
|
Change |
|
Professional &
Industrial |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
466.5 |
|
|
$ |
406.4 |
|
|
14.8 |
|
% |
14.0 |
|
% |
Gross profit |
|
75.2 |
|
|
|
78.9 |
|
|
(4.7 |
) |
|
(5.5 |
) |
|
SG&A expenses excluding restructuring charges |
|
69.0 |
|
|
|
64.6 |
|
|
6.8 |
|
|
6.2 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
69.0 |
|
|
|
64.6 |
|
|
6.9 |
|
|
6.2 |
|
|
Earnings (loss) from operations |
|
6.2 |
|
|
|
14.3 |
|
|
(57.0 |
) |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
6.2 |
|
|
|
14.3 |
|
|
(56.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
16.1 |
|
% |
|
19.4 |
|
% |
(3.3 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
298.2 |
|
|
$ |
247.3 |
|
|
20.6 |
|
% |
20.1 |
|
% |
Gross profit |
|
66.5 |
|
|
|
50.6 |
|
|
31.5 |
|
|
31.1 |
|
|
SG&A expenses excluding restructuring charges |
|
46.9 |
|
|
|
31.3 |
|
|
49.7 |
|
|
49.3 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
46.9 |
|
|
|
31.3 |
|
|
49.7 |
|
|
49.3 |
|
|
Earnings (loss) from operations |
|
19.6 |
|
|
|
19.3 |
|
|
1.8 |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
19.6 |
|
|
|
19.3 |
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
22.3 |
|
% |
|
20.4 |
|
% |
1.9 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
105.9 |
|
|
$ |
25.1 |
|
|
322.1 |
|
% |
322.1 |
|
% |
Gross profit |
|
16.8 |
|
|
|
4.3 |
|
|
291.1 |
|
|
291.1 |
|
|
SG&A expenses excluding restructuring charges |
|
15.3 |
|
|
|
9.6 |
|
|
60.0 |
|
|
60.0 |
|
|
Restructuring charges |
|
— |
|
|
|
(0.1 |
) |
|
NM |
|
NM |
|
Total SG&A expenses |
|
15.3 |
|
|
|
9.5 |
|
|
60.5 |
|
|
60.5 |
|
|
Earnings (loss) from operations |
|
1.5 |
|
|
|
(5.2 |
) |
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
1.5 |
|
|
|
(5.3 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
15.8 |
|
% |
|
17.1 |
|
% |
(1.3 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
107.3 |
|
|
$ |
83.6 |
|
|
28.2 |
|
% |
26.1 |
|
% |
Gross profit |
|
34.8 |
|
|
|
29.2 |
|
|
19.3 |
|
|
15.7 |
|
|
SG&A expenses excluding restructuring charges |
|
30.1 |
|
|
|
25.1 |
|
|
19.8 |
|
|
17.0 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
30.1 |
|
|
|
25.1 |
|
|
19.7 |
|
|
17.0 |
|
|
Earnings (loss) from operations |
|
4.7 |
|
|
|
4.1 |
|
|
16.2 |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
4.7 |
|
|
|
4.1 |
|
|
15.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
32.5 |
|
% |
|
34.9 |
|
% |
(2.4 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
280.4 |
|
|
$ |
213.0 |
|
|
31.6 |
|
% |
21.6 |
|
% |
Gross profit |
|
37.7 |
|
|
|
26.2 |
|
|
43.8 |
|
|
32.9 |
|
|
SG&A expenses excluding restructuring charges |
|
34.6 |
|
|
|
28.3 |
|
|
22.3 |
|
|
13.3 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
34.6 |
|
|
|
28.3 |
|
|
22.3 |
|
|
13.3 |
|
|
Earnings (loss) from operations |
|
3.1 |
|
|
|
(2.1 |
) |
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
3.1 |
|
|
|
(2.1 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
13.4 |
|
% |
|
12.3 |
|
% |
1.1 |
|
pts. |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS BY SEGMENT |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
|
2020 |
|
Change |
|
Change |
|
Professional &
Industrial |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
934.1 |
|
|
$ |
900.2 |
|
|
3.8 |
|
% |
3.2 |
|
% |
Gross profit |
|
151.1 |
|
|
|
164.0 |
|
|
(7.9 |
) |
|
(8.4 |
) |
|
SG&A expenses excluding restructuring charges |
|
138.4 |
|
|
|
140.7 |
|
|
(1.7 |
) |
|
(2.1 |
) |
|
Restructuring charges |
|
— |
|
|
|
4.4 |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
138.4 |
|
|
|
145.1 |
|
|
(4.6 |
) |
|
(5.0 |
) |
|
Earnings (loss) from operations |
|
12.7 |
|
|
|
18.9 |
|
|
(32.9 |
) |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
12.7 |
|
|
|
23.3 |
|
|
(45.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
16.2 |
|
% |
|
18.2 |
|
% |
(2.0 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
552.9 |
|
|
$ |
517.5 |
|
|
6.8 |
|
% |
6.5 |
|
% |
Gross profit |
|
119.7 |
|
|
|
105.3 |
|
|
13.7 |
|
|
13.4 |
|
|
SG&A expenses excluding restructuring charges |
|
82.6 |
|
|
|
67.3 |
|
|
22.8 |
|
|
22.5 |
|
|
Restructuring charges |
|
— |
|
|
|
0.5 |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
82.6 |
|
|
|
67.8 |
|
|
21.8 |
|
|
21.5 |
|
|
Earnings (loss) from operations |
|
37.1 |
|
|
|
37.5 |
|
|
(1.1 |
) |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
37.1 |
|
|
|
38.0 |
|
|
(2.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
21.6 |
|
% |
|
20.3 |
|
% |
1.3 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
217.5 |
|
|
$ |
167.6 |
|
|
29.8 |
|
% |
29.8 |
|
% |
Gross profit |
|
34.0 |
|
|
|
24.7 |
|
|
37.6 |
|
|
37.6 |
|
|
SG&A expenses excluding restructuring charges |
|
29.5 |
|
|
|
25.3 |
|
|
16.8 |
|
|
16.8 |
|
|
Restructuring charges |
|
— |
|
|
|
0.8 |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
29.5 |
|
|
|
26.1 |
|
|
12.9 |
|
|
12.9 |
|
|
Earnings (loss) from operations |
|
4.5 |
|
|
|
(1.4 |
) |
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
4.5 |
|
|
|
(0.6 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
15.6 |
|
% |
|
14.7 |
|
% |
0.9 |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
206.6 |
|
|
$ |
173.1 |
|
|
19.3 |
|
% |
17.5 |
|
% |
Gross profit |
|
66.1 |
|
|
|
58.0 |
|
|
14.1 |
|
|
11.0 |
|
|
Total SG&A expenses |
|
58.5 |
|
|
|
53.7 |
|
|
8.9 |
|
|
6.6 |
|
|
Earnings (loss) from operations |
|
7.6 |
|
|
|
4.3 |
|
|
78.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
32.0 |
|
% |
|
33.5 |
|
% |
(1.5 |
) |
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
553.3 |
|
|
$ |
478.2 |
|
|
15.7 |
|
% |
9.0 |
|
% |
Gross profit |
|
73.4 |
|
|
|
60.5 |
|
|
21.3 |
|
|
13.9 |
|
|
SG&A expenses excluding restructuring charges |
|
67.7 |
|
|
|
60.4 |
|
|
12.0 |
|
|
5.1 |
|
|
Restructuring charges |
|
— |
|
|
|
1.1 |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
67.7 |
|
|
|
61.5 |
|
|
10.1 |
|
|
3.3 |
|
|
Earnings (loss) from operations |
|
5.7 |
|
|
|
(1.0 |
) |
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
5.7 |
|
|
|
0.1 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
13.3 |
|
% |
|
12.7 |
|
% |
0.6 |
|
pts. |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
July 4, 2021 |
|
January 3, 2021 |
|
June 28, 2020 |
|
Current
Assets |
|
|
|
|
|
|
|
Cash and equivalents |
$ |
64.4 |
|
$ |
223.0 |
|
$ |
216.2 |
|
|
Trade accounts receivable, less allowances of |
|
|
|
|
|
|
|
$12.5, $13.3, and $11.2, respectively |
|
1,362.5 |
|
|
1,265.2 |
|
|
1,085.0 |
|
|
Prepaid expenses and other current assets |
|
82.4 |
|
|
61.4 |
|
|
76.0 |
|
|
Total current assets |
|
1,509.3 |
|
|
1,549.6 |
|
|
1,377.2 |
|
|
|
|
|
|
|
|
|
|
Noncurrent
Assets |
|
|
|
|
|
|
|
Property and equipment, net |
|
37.7 |
|
|
41.0 |
|
|
41.6 |
|
|
Operating lease right-of-use assets |
|
83.2 |
|
|
83.2 |
|
|
85.8 |
|
|
Deferred taxes |
|
302.9 |
|
|
282.0 |
|
|
265.9 |
|
|
Goodwill, net |
|
114.8 |
|
|
3.5 |
|
|
— |
|
|
Investment in Persol Holdings |
|
187.7 |
|
|
164.2 |
|
|
127.2 |
|
|
Investment in equity affiliate |
|
120.0 |
|
|
118.5 |
|
|
113.6 |
|
|
Other assets |
|
391.3 |
|
|
319.9 |
|
|
307.4 |
|
|
Total noncurrent assets |
|
1,237.6 |
|
|
1,012.3 |
|
|
941.5 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
$ |
2,746.9 |
|
$ |
2,561.9 |
|
$ |
2,318.7 |
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
Short-term borrowings |
$ |
0.1 |
|
$ |
0.3 |
|
$ |
0.3 |
|
|
Accounts payable and accrued liabilities |
|
612.6 |
|
|
536.8 |
|
|
463.6 |
|
|
Operating lease liabilities |
|
19.6 |
|
|
19.6 |
|
|
19.5 |
|
|
Accrued payroll and related taxes |
|
337.0 |
|
|
293.0 |
|
|
210.7 |
|
|
Accrued workers' compensation and other claims |
|
22.0 |
|
|
22.7 |
|
|
25.6 |
|
|
Income and other taxes |
|
62.6 |
|
|
53.2 |
|
|
71.7 |
|
|
Total current liabilities |
|
1,053.9 |
|
|
925.6 |
|
|
791.4 |
|
|
|
|
|
|
|
|
|
|
Noncurrent
Liabilities |
|
|
|
|
|
|
|
Operating lease liabilities |
|
67.1 |
|
|
67.5 |
|
|
69.9 |
|
|
Accrued payroll and related taxes |
|
58.5 |
|
|
58.5 |
|
|
38.4 |
|
|
Accrued workers' compensation and other claims |
|
40.8 |
|
|
42.2 |
|
|
45.6 |
|
|
Accrued retirement benefits |
|
214.6 |
|
|
205.8 |
|
|
180.8 |
|
|
Other long-term liabilities |
|
68.2 |
|
|
59.3 |
|
|
47.0 |
|
|
Total noncurrent
liabilities |
|
449.2 |
|
|
433.3 |
|
|
381.7 |
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
Common stock |
|
40.1 |
|
|
40.1 |
|
|
40.1 |
|
|
Treasury stock |
|
(15.3 |
) |
|
(17.1 |
) |
|
(17.3 |
) |
|
Paid-in capital |
|
22.3 |
|
|
21.3 |
|
|
20.5 |
|
|
Earnings invested in the business |
|
1,212.5 |
|
|
1,162.9 |
|
|
1,122.8 |
|
|
Accumulated other comprehensive income (loss) |
|
(15.8 |
) |
|
(4.2 |
) |
|
(20.5 |
) |
|
Total stockholders'
equity |
|
1,243.8 |
|
|
1,203.0 |
|
|
1,145.6 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
$ |
2,746.9 |
|
$ |
2,561.9 |
|
$ |
2,318.7 |
|
|
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
|
Working Capital |
$ |
455.4 |
|
$ |
624.0 |
|
$ |
585.8 |
|
|
Current Ratio |
|
1.4 |
|
|
1.7 |
|
|
1.7 |
|
|
Debt-to-capital % |
|
0.0 |
|
% |
0.0 |
|
% |
0.0 |
|
% |
Global Days Sales Outstanding |
|
60 |
|
|
64 |
|
|
61 |
|
|
Year-to-Date Free Cash Flow |
$ |
42.7 |
|
$ |
170.5 |
|
$ |
170.4 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE 26 WEEKS ENDED JULY 4, 2021 AND JUNE 28,
2020 |
(UNAUDITED) |
(In millions of dollars) |
|
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
Net earnings (loss) |
$ |
49.6 |
|
$ |
(112.1 |
) |
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 |
|
14.1 |
|
|
12.0 |
|
Operating lease asset amortization |
|
10.7 |
|
|
10.5 |
|
Provision for credit losses and sales allowances |
|
— |
|
|
0.1 |
|
Stock-based compensation |
|
2.8 |
|
|
2.4 |
|
(Gain) loss on investment in Persol Holdings |
|
(36.3 |
) |
|
48.2 |
|
Gain on sale of assets |
|
— |
|
|
(32.1 |
) |
Equity in net (earnings) loss of PersolKelly Pte. Ltd. |
|
(0.6 |
) |
|
2.8 |
|
Other, net |
|
2.2 |
|
|
0.8 |
|
Changes in operating assets and liabilities, net of
acquisitions |
|
5.1 |
|
|
120.8 |
|
|
|
|
|
|
Net cash from operating activities |
|
47.6 |
|
|
178.1 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital expenditures |
|
(4.9 |
) |
|
(7.7 |
) |
Proceeds from company-owned life insurance |
|
10.4 |
|
|
2.3 |
|
Proceeds from sale of assets |
|
— |
|
|
55.5 |
|
Acquisition of companies, net of cash received |
|
(219.0 |
) |
|
(36.4 |
) |
Proceeds (payments) related to loans with equity affiliate |
|
5.8 |
|
|
— |
|
Proceeds from (investment in) equity securities |
|
5.0 |
|
|
— |
|
Other investing activities |
|
1.0 |
|
|
(0.4 |
) |
|
|
|
|
|
Net cash (used in) from investing activities |
|
(201.7 |
) |
|
13.3 |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net change in short-term borrowings |
|
(0.1 |
) |
|
(1.4 |
) |
Financing lease payments |
|
(0.3 |
) |
|
(0.6 |
) |
Payments of tax withholding for stock awards |
|
(0.6 |
) |
|
(1.1 |
) |
Dividend payments |
|
— |
|
|
(3.0 |
) |
Other financing activities |
|
— |
|
|
(0.1 |
) |
|
|
|
|
|
Net cash used in financing activities |
|
(1.0 |
) |
|
(6.2 |
) |
|
|
|
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash |
|
(2.3 |
) |
|
5.7 |
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash |
|
(157.4 |
) |
|
190.9 |
|
Cash, cash equivalents
and restricted cash at beginning of period |
|
228.1 |
|
|
31.0 |
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
70.7 |
|
$ |
221.9 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
REVENUE FROM SERVICES BY GEOGRAPHY |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
United States |
$ |
894.6 |
|
$ |
700.1 |
|
|
27.8 |
|
% |
27.8 |
|
% |
Canada |
|
39.5 |
|
|
25.6 |
|
|
54.4 |
|
|
36.8 |
|
|
Mexico |
|
33.1 |
|
|
22.5 |
|
|
47.2 |
|
|
26.2 |
|
|
Puerto Rico |
|
26.9 |
|
|
20.0 |
|
|
34.3 |
|
|
34.3 |
|
|
Brazil |
|
— |
|
|
6.1 |
|
|
NM |
|
NM |
|
Total Americas
Region |
|
994.1 |
|
|
774.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
France |
|
57.5 |
|
|
39.9 |
|
|
44.2 |
|
|
31.7 |
|
|
Switzerland |
|
54.0 |
|
|
47.4 |
|
|
13.8 |
|
|
7.5 |
|
|
Portugal |
|
40.6 |
|
|
23.8 |
|
|
70.7 |
|
|
55.9 |
|
|
Russia |
|
33.7 |
|
|
29.3 |
|
|
15.2 |
|
|
17.9 |
|
|
Italy |
|
19.4 |
|
|
13.3 |
|
|
46.1 |
|
|
33.6 |
|
|
United Kingdom |
|
17.7 |
|
|
17.8 |
|
|
(0.6 |
) |
|
(11.8 |
) |
|
Germany |
|
8.5 |
|
|
7.1 |
|
|
20.6 |
|
|
10.3 |
|
|
Ireland |
|
6.3 |
|
|
4.1 |
|
|
53.5 |
|
|
40.2 |
|
|
Other |
|
17.0 |
|
|
11.5 |
|
|
47.7 |
|
|
32.9 |
|
|
Total Europe
Region |
|
254.7 |
|
|
194.2 |
|
|
31.2 |
|
|
22.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region |
|
9.3 |
|
|
6.8 |
|
|
34.5 |
|
|
20.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly Services,
Inc. |
$ |
1,258.1 |
|
$ |
975.3 |
|
|
29.0 |
|
% |
26.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
REVENUE FROM SERVICES BY GEOGRAPHY |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
June Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2021 |
|
2020 |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
United States |
$ |
1,753.1 |
|
$ |
1,628.6 |
|
|
7.6 |
|
% |
7.6 |
|
% |
Canada |
|
73.6 |
|
|
58.4 |
|
|
26.0 |
|
|
15.1 |
|
|
Mexico |
|
67.7 |
|
|
51.2 |
|
|
32.3 |
|
|
25.3 |
|
|
Puerto Rico |
|
51.1 |
|
|
37.7 |
|
|
35.3 |
|
|
35.3 |
|
|
Brazil |
|
— |
|
|
15.2 |
|
|
NM |
|
NM |
|
Total Americas
Region |
|
1,945.5 |
|
|
1,791.1 |
|
|
8.6 |
|
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
France |
|
111.8 |
|
|
92.4 |
|
|
21.0 |
|
|
10.7 |
|
|
Switzerland |
|
106.7 |
|
|
91.6 |
|
|
16.4 |
|
|
9.6 |
|
|
Portugal |
|
84.3 |
|
|
67.4 |
|
|
25.1 |
|
|
14.5 |
|
|
Russia |
|
66.3 |
|
|
61.4 |
|
|
8.1 |
|
|
15.9 |
|
|
Italy |
|
37.5 |
|
|
28.0 |
|
|
33.9 |
|
|
22.6 |
|
|
United Kingdom |
|
34.7 |
|
|
40.1 |
|
|
(13.4 |
) |
|
(21.4 |
) |
|
Germany |
|
15.6 |
|
|
15.1 |
|
|
3.6 |
|
|
(5.2 |
) |
|
Ireland |
|
11.4 |
|
|
9.1 |
|
|
25.6 |
|
|
14.9 |
|
|
Other |
|
32.6 |
|
|
26.7 |
|
|
22.1 |
|
|
11.9 |
|
|
Total Europe
Region |
|
500.9 |
|
|
431.8 |
|
|
16.0 |
|
|
9.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region |
|
17.6 |
|
|
13.5 |
|
|
29.8 |
|
|
16.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly Services,
Inc. |
$ |
2,464.0 |
|
$ |
2,236.4 |
|
|
10.2 |
|
% |
8.3 |
|
% |
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
SECOND QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
2021 |
|
2020 |
SG&A
Expenses: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
69.0 |
|
|
$ |
64.6 |
|
Science, Engineering &
Technology |
46.9 |
|
|
31.3 |
|
Education |
15.3 |
|
|
9.6 |
|
Outsourcing &
Consulting |
30.1 |
|
|
25.1 |
|
International |
34.6 |
|
|
28.3 |
|
Corporate |
21.4 |
|
|
19.4 |
|
Total Company |
$ |
217.3 |
|
|
$ |
178.3 |
|
|
2021 |
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
6.2 |
|
|
$ |
14.3 |
|
Science, Engineering &
Technology |
19.6 |
|
|
19.3 |
|
Education |
1.5 |
|
|
(5.3 |
) |
Outsourcing &
Consulting |
4.7 |
|
|
4.1 |
|
International |
3.1 |
|
|
(2.1 |
) |
Corporate |
(21.4 |
) |
|
(19.4 |
) |
Total Company |
$ |
13.7 |
|
|
$ |
10.9 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
SECOND QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
2020 |
SG&A
Expenses: |
As Reported |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
64.6 |
|
|
$ |
— |
|
|
$ |
64.6 |
|
Science, Engineering &
Technology |
31.3 |
|
|
— |
|
|
31.3 |
|
Education |
9.5 |
|
|
0.1 |
|
|
9.6 |
|
Outsourcing &
Consulting |
25.1 |
|
|
— |
|
|
25.1 |
|
International |
28.3 |
|
|
— |
|
|
28.3 |
|
Corporate |
19.3 |
|
|
0.1 |
|
|
19.4 |
|
Total Company |
$ |
178.1 |
|
|
$ |
0.2 |
|
|
$ |
178.3 |
|
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
14.3 |
|
|
$ |
— |
|
|
$ |
14.3 |
|
Science, Engineering &
Technology |
19.3 |
|
|
— |
|
|
19.3 |
|
Education |
(5.2 |
) |
|
(0.1 |
) |
|
(5.3 |
) |
Outsourcing &
Consulting |
4.1 |
|
|
— |
|
|
4.1 |
|
International |
(2.1 |
) |
|
— |
|
|
(2.1 |
) |
Corporate |
(19.3 |
) |
|
(0.1 |
) |
|
(19.4 |
) |
Total Company |
$ |
11.1 |
|
|
$ |
(0.2 |
) |
|
$ |
10.9 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
JUNE YEAR TO DATE |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
2021 |
|
2020 |
SG&A
Expenses: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
138.4 |
|
|
$ |
140.7 |
|
Science, Engineering &
Technology |
82.6 |
|
|
67.3 |
|
Education |
29.5 |
|
|
25.3 |
|
Outsourcing &
Consulting |
58.5 |
|
|
53.7 |
|
International |
67.7 |
|
|
60.4 |
|
Corporate |
43.3 |
|
|
41.7 |
|
Total Company |
$ |
420.0 |
|
|
$ |
389.1 |
|
|
2021 |
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Adjusted |
Professional & Industrial |
$ |
12.7 |
|
|
$ |
23.3 |
|
Science, Engineering &
Technology |
37.1 |
|
|
38.0 |
|
Education |
4.5 |
|
|
(0.6 |
) |
Outsourcing &
Consulting |
7.6 |
|
|
4.3 |
|
International |
5.7 |
|
|
0.1 |
|
Corporate |
(43.3 |
) |
|
(41.7 |
) |
Total Company |
$ |
24.3 |
|
|
$ |
23.4 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
JUNE YEAR TO DATE |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
2020 |
SG&A
Expenses: |
As Reported |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
145.1 |
|
|
$ |
(4.4 |
) |
|
$ |
140.7 |
|
Science, Engineering &
Technology |
67.8 |
|
|
(0.5 |
) |
|
67.3 |
|
Education |
26.1 |
|
|
(0.8 |
) |
|
25.3 |
|
Outsourcing &
Consulting |
53.7 |
|
|
— |
|
|
53.7 |
|
International |
61.5 |
|
|
(1.1 |
) |
|
60.4 |
|
Corporate |
43.4 |
|
|
(1.7 |
) |
|
41.7 |
|
Total Company |
$ |
397.6 |
|
|
$ |
(8.5 |
) |
|
$ |
389.1 |
|
|
2020 |
Earnings (loss) from
Operations: |
As Reported |
|
Goodwillimpairment(1) |
|
Gain on saleof
assets(3) |
|
Restructuring(4) |
|
Adjusted |
Professional & Industrial |
$ |
18.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4.4 |
|
|
$ |
23.3 |
|
Science, Engineering &
Technology |
37.5 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
38.0 |
|
Education |
(1.4 |
) |
|
— |
|
|
— |
|
|
0.8 |
|
|
(0.6 |
) |
Outsourcing &
Consulting |
4.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
4.3 |
|
International |
(1.0 |
) |
|
— |
|
|
— |
|
|
1.1 |
|
|
0.1 |
|
Corporate |
(159.0 |
) |
|
147.7 |
|
|
(32.1 |
) |
|
1.7 |
|
|
(41.7 |
) |
Total Company |
$ |
(100.7 |
) |
|
$ |
147.7 |
|
|
$ |
(32.1 |
) |
|
$ |
8.5 |
|
|
$ |
23.4 |
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES
(continued) |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
June Year to Date |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Income tax expense (benefit) |
|
$ |
(2.6 |
) |
|
$ |
0.9 |
|
|
$ |
7.9 |
|
|
$ |
(35.3 |
) |
Taxes on goodwill impairment
charge(1) |
|
— |
|
|
— |
|
|
— |
|
|
23.0 |
|
Taxes on investment in Persol
Holdings(2) |
|
(1.9 |
) |
|
(9.0 |
) |
|
(11.1 |
) |
|
14.8 |
|
Taxes on gain on sale of
assets(3) |
|
— |
|
|
— |
|
|
— |
|
|
(8.1 |
) |
Taxes on restructuring
charges(4) |
|
— |
|
|
— |
|
|
— |
|
|
2.2 |
|
Adjusted income tax expense
(benefit) |
|
$ |
(4.5 |
) |
|
$ |
(8.1 |
) |
|
$ |
(3.2 |
) |
|
$ |
(3.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
June Year to Date |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net earnings (loss) |
|
$ |
24.0 |
|
|
$ |
41.1 |
|
|
$ |
49.6 |
|
|
$ |
(112.1 |
) |
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
— |
|
|
— |
|
|
124.7 |
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(4.4 |
) |
|
(20.6 |
) |
|
(25.2 |
) |
|
33.4 |
|
Gain on sale of assets, net of
taxes(3) |
|
— |
|
|
— |
|
|
— |
|
|
(24.0 |
) |
Restructuring charges, net of
taxes(4) |
|
— |
|
|
(0.2 |
) |
|
— |
|
|
6.3 |
|
Adjusted net earnings |
|
$ |
19.6 |
|
|
$ |
20.3 |
|
|
$ |
24.4 |
|
|
$ |
28.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
June Year to Date |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Per Share |
|
Per Share |
Net earnings (loss) |
|
$ |
0.60 |
|
|
$ |
1.04 |
|
|
$ |
1.25 |
|
|
$ |
(2.86 |
) |
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
— |
|
|
— |
|
|
3.18 |
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(0.11 |
) |
|
(0.52 |
) |
|
(0.63 |
) |
|
0.85 |
|
Gain on sale of assets, net of
taxes(3) |
|
— |
|
|
— |
|
|
— |
|
|
(0.61 |
) |
Restructuring charges, net of
taxes(4) |
|
— |
|
|
— |
|
|
— |
|
|
0.16 |
|
Adjusted net earnings |
|
$ |
0.49 |
|
|
$ |
0.51 |
|
|
$ |
0.61 |
|
|
$ |
0.72 |
|
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
(continued) |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
June Year to Date |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net earnings (loss) |
$ |
24.0 |
|
|
|
$ |
41.1 |
|
|
|
$ |
49.6 |
|
|
|
$ |
(112.1 |
) |
|
Other (income) expense,
net |
0.3 |
|
|
|
(2.6 |
) |
|
|
3.7 |
|
|
|
(4.3 |
) |
|
Income tax expense
(benefit) |
(2.6 |
) |
|
|
0.9 |
|
|
|
7.9 |
|
|
|
(35.3 |
) |
|
Depreciation and
amortization |
8.5 |
|
|
|
6.0 |
|
|
|
14.8 |
|
|
|
12.0 |
|
|
EBITDA |
30.2 |
|
|
|
45.4 |
|
|
|
76.0 |
|
|
|
(139.7 |
) |
|
Equity in net (earnings) loss
of affiliate |
(1.7 |
) |
|
|
1.3 |
|
|
|
(0.6 |
) |
|
|
2.8 |
|
|
Goodwill impairment
charge(1) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
147.7 |
|
|
(Gain) loss on investment in
Persol Holdings(2) |
(6.3 |
) |
|
|
(29.6 |
) |
|
|
(36.3 |
) |
|
|
48.2 |
|
|
Gain on sale of assets(3) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32.1 |
) |
|
Restructuring(4) |
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
8.5 |
|
|
Adjusted
EBITDA |
$ |
22.2 |
|
|
|
$ |
16.9 |
|
|
|
$ |
39.1 |
|
|
|
$ |
35.4 |
|
|
Adjusted EBITDA
margin |
1.8 |
|
% |
|
1.7 |
|
% |
|
1.6 |
|
% |
|
1.6 |
|
% |
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.
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.
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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