TROY, Mich., Feb. 14, 2022 /PRNewswire/ --
Kelly® (Nasdaq: KELYA, KELYB), a leading
specialty talent solutions provider, today announced results for
the fourth quarter and full year of 2021. The company's 2021 fiscal
year is a 52-week year, and the fourth quarter of 2021 includes 13
weeks. The company's 2020 fiscal year was a 53-week year, and the
fourth quarter of 2020 included 14 weeks.
Peter Quigley,
president and chief executive officer, announced revenue for the
fourth quarter of 2021 totaled $1.3
billion, a 0.7% increase compared to the corresponding
quarter of 2020. Year-over-year revenue trends were negatively
impacted by the additional week in the 2020 period. Adjusted for
the impact of the additional week in 2020, revenue for the fourth
quarter of 2021 increased 6.0%. Improving year-over-year revenues
in the quarter reflect increasing customer demand compared to the
COVID-19-impacted prior year period.
Earnings from operations in the fourth quarter of 2021 totaled
$15.3 million, compared to earnings
of $9.5 million reported in the
fourth quarter of 2020. The 2021 fourth-quarter results include a
$4.1 million restructuring charge.
The 2020 fourth-quarter results included a $4.4 million restructuring charge. On an adjusted
basis, earnings from operations were $19.4
million compared to $13.9
million in the corresponding quarter of 2020.
Diluted earnings per share in the fourth quarter of 2021 were
$1.80 compared to $0.59 per share in the fourth quarter of 2020.
Included in the earnings per share in the fourth quarter of 2021 is
a non-cash gain, net of tax, on Kelly's investment in Persol
Holdings common stock of $0.87 and a
gain on insurance settlement, net of tax, of $0.36, partially offset by a loss of $0.08 related to restructuring charges, net of
tax. Included in the earnings per share in the fourth quarter of
2020 is $0.26 from a non-cash gain
per share on Kelly's investment in Persol Holdings common stock,
net of tax, partially offset by a loss of $0.08 related to restructuring charges, net of
tax. On an adjusted basis, earnings per share were $0.65 in the fourth quarter of 2021 compared to
$0.41 in the corresponding quarter of
2020.
"Our fourth-quarter results reflect that the economic recovery
continues. While our revenue growth in the quarter was affected by
talent supply, we are pleased with our ability to leverage growth
into solid gross profit and earnings improvements," said
Quigley.
Operating earnings for the full year of 2021 totaled
$48.6 million, compared to a loss of
$93.6 million reported for the full
year of 2020. The 2021 full-year results included a $4.0 million restructuring charge. The 2020
full-year results include a $147.7
million goodwill impairment charge, $12.8 million of restructuring charges, a
$9.5 million customer dispute charge
and a $32.1 million gain on sale of
assets. On an adjusted basis, earnings from operations for the full
year of 2021 were $52.6 million
compared to $44.3 million for the
full year of 2020.
Diluted earnings per share for the full year of 2021 were
$3.91 compared to a loss per share of
$1.83 for the full year of 2020.
Included in the earnings per share for the full year of 2021 is
$2.12 from a non-cash gain on Kelly's
investment in Persol Holdings common stock, net of tax, and a
$0.36 gain on insurance settlement,
net of tax, partially offset by a $0.07 per share restructuring charge, net of tax.
Included in the loss per share for the full year of 2020 is a
non-cash goodwill impairment charge, net of tax, of $3.17; restructuring charges, net of tax, of
$0.24; a $0.17 customer dispute charge, net of tax; and a
non-cash loss, net of tax, on Kelly's investment in Persol Holdings
common stock of $0.29, partially
offset by a gain of $0.61 related to
the gain on sale of assets, net of tax. On an adjusted basis,
earnings per share were $1.51 for the
full year of 2021 compared to $1.44
for the full year of 2020.
In other actions taken today, Persol Holdings and Kelly have
agreed to changes in their relationship in the APAC
region.
First, Kelly will reduce its ownership interest in PersolKelly
Pte. Ltd., the staffing joint venture established between Kelly and
Persol in 2016, from 49% to 2.5%. Persol will acquire 46.5% of the
shares held by Kelly through a Persol subsidiary. These changes
will have no impact on the operations of PersolKelly, which remains
a premier staffing supplier across the region. PersolKelly will
continue to use the brand name, PersolKelly, for a period of
time.
Second, Kelly and Persol will discontinue their
cross-shareholding. Kelly holds 9,106,800 shares of Persol Holdings
common stock, and Persol owns 1,576,169 shares of Kelly's Class A
common stock and 1,475 shares of its Class B common stock. Kelly
will monetize its equity holdings in Persol by selling all its
shares in an open market transaction. Kelly will also buy back from
Persol its equity position in Kelly. These actions will allow Kelly
to realize the appreciation of its equity investment in Persol and
enable the company to reinvest in Kelly's specialty growth
strategy. Both stock transactions are expected to be completed
within two business days.
Persol Holdings continues to be a valued partner to Kelly, and
the companies' senior leaders will continue to regularly meet as
part of this valued business partnership. PersolKelly, under the
leadership of CEO Francis Koh, will
continue to provide workforce solutions to customers across 13
markets in the Asia Pacific market
and Kelly, under the leadership of Pete
Hamilton, will continue to operate KellyOCG in the
region.
"Kelly is already building on our momentum from 2021, which
included Softworld, our largest acquisition to date, the creation
of a strong, diverse leadership team, and the introduction of new
solutions and products in our specialty businesses," said Quigley.
"With the additional transactions announced today, Kelly will free
up significant capital to invest in our specialty strategy,
positioning us to elevate growth and profitability in 2022 and
beyond."
In conjunction with its fourth-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 February 14 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 February 14, 2022, at (866) 207-1041 (toll-free)
and (402) 970-0847 (caller-paid). The access code is 7976390#. 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 impact of the 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 more than 350,000 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 2021 was
$4.9 billion. Visit
kellyservices.com and let us help with what's next for
you.
MEDIA
CONTACT:
|
|
|
ANALYST
CONTACT:
|
Jane
Stehney
|
|
|
James
Polehna
|
(248)
765-6864
|
|
|
(248)
244-4586
|
stehnja@kellyservices.com
|
|
|
polehjm@kellyservices.com
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
FOR THE 13 WEEKS
ENDED JANUARY 2, 2022 AND 14 WEEKS ENDED JANUARY 3,
2021
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
1,250.3
|
$
|
1,241.4
|
$
|
8.9
|
|
0.7
|
%
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,004.3
|
|
1,017.3
|
|
(13.0)
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
246.0
|
|
224.1
|
|
21.9
|
|
9.8
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
230.7
|
|
214.6
|
|
16.1
|
|
7.5
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
|
15.3
|
|
9.5
|
|
5.8
|
|
60.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
investment in Persol Holdings
|
|
50.0
|
|
14.8
|
|
35.2
|
|
236.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on insurance
settlement
|
|
19.0
|
|
—
|
|
19.0
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
0.4
|
|
(0.2)
|
|
0.6
|
|
277.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes and equity in net earnings (loss) of affiliate
|
|
84.7
|
|
24.1
|
|
60.6
|
|
251.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
16.1
|
|
2.5
|
|
13.6
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings before
equity in net earnings (loss) of affiliate
|
|
68.6
|
|
21.6
|
|
47.0
|
|
218.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(loss) of affiliate
|
|
3.1
|
|
1.8
|
|
1.3
|
|
72.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
71.7
|
$
|
23.4
|
$
|
48.3
|
|
207.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
1.80
|
$
|
0.59
|
$
|
1.21
|
|
205.1
|
%
|
|
|
Diluted earnings per
share
|
$
|
1.80
|
$
|
0.59
|
$
|
1.21
|
|
205.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement
income (included in revenue from services)
|
$
|
21.1
|
$
|
10.8
|
$
|
10.3
|
|
94.7
|
%
|
95.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
19.7
|
%
|
18.1
|
%
|
1.6
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate
|
|
6.2
|
|
4.2
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
27.7
|
$
|
20.4
|
$
|
7.3
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
2.2
|
%
|
1.6
|
%
|
0.6
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
19.0
|
%
|
10.6
|
%
|
8.4
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39.4
|
|
39.3
|
|
|
|
|
|
|
|
Diluted
|
|
39.6
|
|
39.4
|
|
|
|
|
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
FOR THE 52 WEEKS
ENDED JANUARY 2, 2022 AND 53 WEEKS ENDED JANUARY 3,
2021
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
4,909.7
|
$
|
4,516.0
|
$
|
393.7
|
|
8.7
|
%
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
3,990.5
|
|
3,688.4
|
|
302.1
|
|
8.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
919.2
|
|
827.6
|
|
91.6
|
|
11.1
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
870.6
|
|
805.6
|
|
65.0
|
|
8.1
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charge
|
|
—
|
|
147.7
|
|
(147.7)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
—
|
|
(32.1)
|
|
32.1
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations
|
|
48.6
|
|
(93.6)
|
|
142.2
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
investment in Persol Holdings
|
|
121.8
|
|
(16.6)
|
|
138.4
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on insurance
settlement
|
|
19.0
|
|
—
|
|
19.0
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
(3.6)
|
|
3.4
|
|
(7.0)
|
|
(206.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before taxes and equity in net earnings (loss) of
affiliate
|
|
185.8
|
|
(106.8)
|
|
292.6
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
35.1
|
|
(34.0)
|
|
69.1
|
|
203.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate
|
|
150.7
|
|
(72.8)
|
|
223.5
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(loss) of affiliate
|
|
5.4
|
|
0.8
|
|
4.6
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
|
156.1
|
$
|
(72.0)
|
$
|
228.1
|
|
NM
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
$
|
3.93
|
$
|
(1.83)
|
$
|
5.76
|
|
NM
|
%
|
|
|
Diluted earnings
(loss) per share
|
$
|
3.91
|
$
|
(1.83)
|
$
|
5.74
|
|
NM
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement
income (included in revenue from services)
|
$
|
75.4
|
$
|
39.7
|
$
|
35.7
|
|
89.7
|
%
|
87.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
18.7
|
%
|
18.3
|
%
|
0.4
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate
|
|
5.3
|
|
(11.3)
|
|
16.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
84.1
|
$
|
69.0
|
$
|
15.1
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
1.7
|
%
|
1.5
|
%
|
0.2
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
18.9
|
%
|
31.8
|
%
|
(12.9)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39.4
|
|
39.3
|
|
|
|
|
|
|
|
Diluted
|
|
39.5
|
|
39.3
|
|
|
|
|
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS BY SEGMENT
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
(13 Wks)
|
|
|
2020
(14 Wks)
|
|
% Change
|
|
CC
% Change
|
|
Professional &
Industrial
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
450.7
|
|
$
|
511.7
|
|
(11.9)
|
%
|
(12.1)
|
%
|
Gross
profit
|
|
82.3
|
|
|
89.1
|
|
(7.7)
|
|
(7.9)
|
|
SG&A
expenses excluding restructuring charges
|
|
70.8
|
|
|
76.5
|
|
(7.4)
|
|
(7.6)
|
|
Restructuring
charges
|
|
—
|
|
|
1.7
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
70.8
|
|
|
78.2
|
|
(9.5)
|
|
(9.6)
|
|
Earnings (loss)
from operations
|
|
11.5
|
|
|
10.9
|
|
5.3
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
11.5
|
|
|
12.6
|
|
(9.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
18.2
|
%
|
|
17.4
|
%
|
0.8
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
297.7
|
|
$
|
257.6
|
|
15.5
|
%
|
15.5
|
%
|
Gross
profit
|
|
66.1
|
|
|
53.4
|
|
23.7
|
|
23.7
|
|
SG&A
expenses excluding restructuring charges
|
|
49.2
|
|
|
35.2
|
|
39.7
|
|
39.6
|
|
Restructuring
charges
|
|
—
|
|
|
0.1
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
49.2
|
|
|
35.3
|
|
39.3
|
|
39.3
|
|
Earnings (loss)
from operations
|
|
16.9
|
|
|
18.1
|
|
(6.7)
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
16.9
|
|
|
18.2
|
|
(7.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
22.2
|
%
|
|
20.7
|
%
|
1.5
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
132.4
|
|
$
|
91.8
|
|
44.3
|
%
|
44.3
|
%
|
Gross
profit
|
|
21.1
|
|
|
13.4
|
|
57.6
|
|
57.6
|
|
SG&A
expenses excluding restructuring charges
|
|
15.6
|
|
|
13.3
|
|
17.1
|
|
17.1
|
|
Restructuring
charges
|
|
—
|
|
|
0.2
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
15.6
|
|
|
13.5
|
|
15.3
|
|
15.3
|
|
Earnings (loss)
from operations
|
|
5.5
|
|
|
(0.1)
|
|
NM
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
5.5
|
|
|
0.1
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
15.9
|
%
|
|
14.6
|
%
|
1.3
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
112.1
|
|
$
|
102.5
|
|
9.3
|
%
|
9.4
|
%
|
Gross profit
|
|
38.0
|
|
|
32.7
|
|
16.3
|
|
16.5
|
|
SG&A expenses
excluding restructuring charges
|
|
33.5
|
|
|
28.9
|
|
16.2
|
|
16.4
|
|
Restructuring
charges
|
|
—
|
|
|
0.3
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
33.5
|
|
|
29.2
|
|
15.1
|
|
15.4
|
|
Earnings (loss) from
operations
|
|
4.5
|
|
|
3.5
|
|
26.2
|
|
|
|
Earnings (loss) from
operations excluding restructuring charges
|
|
4.5
|
|
|
3.8
|
|
17.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
34.0
|
%
|
|
31.9
|
%
|
2.1
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
257.7
|
|
$
|
278.0
|
|
(7.2)
|
%
|
(5.4)
|
%
|
Gross
profit
|
|
38.5
|
|
|
35.5
|
|
8.6
|
|
11.0
|
|
SG&A
expenses excluding restructuring charges
|
|
35.5
|
|
|
33.2
|
|
6.9
|
|
9.2
|
|
Restructuring
charges
|
|
1.2
|
|
|
0.3
|
|
365.5
|
|
384.5
|
|
Total SG&A
expenses
|
|
36.7
|
|
|
33.5
|
|
9.6
|
|
12.1
|
|
Earnings (loss)
from operations
|
|
1.8
|
|
|
2.0
|
|
(7.7)
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
3.0
|
|
|
2.3
|
|
35.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
15.0
|
%
|
|
12.8
|
%
|
2.2
|
pts.
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS BY SEGMENT
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
(52 Wks)
|
|
|
2020
(53 Wks)
|
|
%
Change
|
|
CC %
Change
|
|
Professional &
Industrial
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
1,837.4
|
|
$
|
1,858.4
|
|
(1.1)
|
%
|
(1.5)
|
%
|
Gross
profit
|
|
310.0
|
|
|
330.2
|
|
(6.1)
|
|
(6.5)
|
|
SG&A
expenses excluding restructuring charges
|
|
278.6
|
|
|
282.6
|
|
(1.4)
|
|
(1.7)
|
|
Restructuring
charges
|
|
—
|
|
|
6.0
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
278.6
|
|
|
288.6
|
|
(3.5)
|
|
(3.8)
|
|
Earnings (loss)
from operations
|
|
31.4
|
|
|
41.6
|
|
(24.4)
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
31.4
|
|
|
47.6
|
|
(34.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
16.9
|
%
|
|
17.8
|
%
|
(0.9)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
1,156.8
|
|
$
|
1,019.1
|
|
13.5
|
%
|
13.3
|
%
|
Gross
profit
|
|
253.9
|
|
|
209.4
|
|
21.3
|
|
21.1
|
|
SG&A
expenses excluding restructuring charges
|
|
180.2
|
|
|
133.8
|
|
34.7
|
|
34.5
|
|
Restructuring
charges
|
|
—
|
|
|
0.6
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
180.2
|
|
|
134.4
|
|
34.1
|
|
33.9
|
|
Earnings (loss)
from operations
|
|
73.7
|
|
|
75.0
|
|
(1.7)
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
73.7
|
|
|
75.6
|
|
(2.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
21.9
|
%
|
|
20.5
|
%
|
1.4
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
416.5
|
|
$
|
286.9
|
|
45.2
|
%
|
45.2
|
%
|
Gross
profit
|
|
65.1
|
|
|
42.2
|
|
54.1
|
|
54.1
|
|
SG&A
expenses excluding restructuring charges
|
|
62.1
|
|
|
50.2
|
|
23.6
|
|
23.6
|
|
Restructuring
charges
|
|
—
|
|
|
1.0
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
62.1
|
|
|
51.2
|
|
21.1
|
|
21.1
|
|
Earnings (loss)
from operations
|
|
3.0
|
|
|
(9.0)
|
|
NM
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
3.0
|
|
|
(8.0)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
15.6
|
%
|
|
14.7
|
%
|
0.9
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
432.1
|
|
$
|
363.5
|
|
18.9
|
%
|
17.9
|
%
|
Gross
profit
|
|
141.4
|
|
|
119.8
|
|
18.0
|
|
16.3
|
|
SG&A
expenses excluding restructuring charges
|
|
122.7
|
|
|
108.0
|
|
13.6
|
|
12.4
|
|
Restructuring
charges
|
|
—
|
|
|
0.3
|
|
NM
|
|
NM
|
|
Total SG&A
expenses
|
|
122.7
|
|
|
108.3
|
|
13.3
|
|
12.0
|
|
Earnings (loss)
from operations
|
|
18.7
|
|
|
11.5
|
|
62.7
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
18.7
|
|
|
11.8
|
|
58.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
32.7
|
%
|
|
33.0
|
%
|
(0.3)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
1067.8
|
|
$
|
988.6
|
|
8.0
|
%
|
4.9
|
%
|
Gross
profit
|
|
148.8
|
|
|
126.0
|
|
18.1
|
|
14.8
|
|
SG&A
expenses excluding restructuring charges
|
|
137.7
|
|
|
133.5
|
|
3.1
|
|
0.2
|
|
Restructuring
charges
|
|
1.2
|
|
|
1.4
|
|
(10.2)
|
|
(6.6)
|
|
Total SG&A
expenses
|
|
138.9
|
|
|
134.9
|
|
2.9
|
|
0.1
|
|
Earnings (loss)
from operations
|
|
9.9
|
|
|
(8.9)
|
|
NM
|
|
|
|
Earnings (loss)
from operations excluding restructuring charges
|
|
11.1
|
|
|
(7.5)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
13.9
|
%
|
|
12.7
|
%
|
1.2
|
pts.
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
Jan. 2,
2022
|
|
Jan. 3,
2021
|
|
Current
Assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
112.7
|
$
|
223.0
|
|
Trade accounts
receivable, less allowances of
|
|
|
|
|
|
$12.6 and $13.3, respectively
|
|
1,423.2
|
|
1,265.2
|
|
Prepaid expenses
and other current assets
|
|
52.8
|
|
61.4
|
|
Total current
assets
|
|
1,588.7
|
|
1,549.6
|
|
|
|
|
|
|
|
Noncurrent
Assets
|
|
|
|
|
|
Property and equipment,
net
|
|
35.3
|
|
41.0
|
|
Operating lease
right-of-use assets
|
|
75.8
|
|
83.2
|
|
Deferred
taxes
|
|
302.8
|
|
282.0
|
|
Goodwill,
net
|
|
114.8
|
|
3.5
|
|
Investment in Persol
Holdings
|
|
264.3
|
|
164.2
|
|
Investment in equity
affiliate
|
|
123.4
|
|
118.5
|
|
Other assets
|
|
389.1
|
|
319.9
|
|
Total noncurrent
assets
|
|
1,305.5
|
|
1,012.3
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
2,894.2
|
$
|
2,561.9
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Short-term
borrowings
|
$
|
—
|
$
|
0.3
|
|
Accounts payable
and accrued liabilities
|
|
687.2
|
|
536.8
|
|
Operating lease
liabilities
|
|
17.5
|
|
19.6
|
|
Accrued payroll
and related taxes
|
|
318.4
|
|
293.0
|
|
Accrued workers'
compensation and other claims
|
|
20.8
|
|
22.7
|
|
Income and other
taxes
|
|
51.3
|
|
53.2
|
|
Total current
liabilities
|
|
1,095.2
|
|
925.6
|
|
|
|
|
|
|
|
Noncurrent
Liabilities
|
|
|
|
|
|
Operating lease
liabilities
|
|
61.4
|
|
67.5
|
|
Accrued payroll and
related taxes
|
|
57.6
|
|
58.5
|
|
Accrued workers'
compensation and other claims
|
|
37.0
|
|
42.2
|
|
Accrued
retirement benefits
|
|
220.0
|
|
205.8
|
|
Other long-term
liabilities
|
|
86.8
|
|
59.3
|
|
Total noncurrent
liabilities
|
|
462.8
|
|
433.3
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common
stock
|
|
40.1
|
|
40.1
|
|
Treasury
stock
|
|
(15.1)
|
|
(17.1)
|
|
Paid-in
capital
|
|
23.9
|
|
21.3
|
|
Earnings
invested in the business
|
|
1,315.0
|
|
1,162.9
|
|
Accumulated
other comprehensive income (loss)
|
|
(27.7)
|
|
(4.2)
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
1,336.2
|
|
1,203.0
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
2,894.2
|
$
|
2,561.9
|
|
|
|
|
|
|
|
Statistics:
|
|
|
|
|
|
Working
Capital
|
$
|
493.5
|
$
|
624.0
|
|
Current
Ratio
|
|
1.5
|
|
1.7
|
|
Debt-to-capital
%
|
|
0.0
|
%
|
0.0
|
%
|
Global Days Sales
Outstanding
|
|
60
|
|
64
|
|
Year-to-Date Free
Cash Flow
|
$
|
73.8
|
$
|
170.5
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR THE 52 WEEKS
ENDED JANUARY 2, 2022 AND 53 WEEKS ENDED JANUARY 3,
2021
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
Net earnings
(loss)
|
$
|
156.1
|
$
|
(72.0)
|
Adjustments to
reconcile net earnings to net cash from operating
activities:
|
|
|
|
|
Goodwill impairment charge
|
|
—
|
|
147.7
|
Deferred income taxes
|
|
21.6
|
|
(57.1)
|
Depreciation and amortization
|
|
29.8
|
|
24.2
|
Operating lease asset amortization
|
|
21.2
|
|
21.1
|
Provision for credit losses and sales allowances
|
|
1.6
|
|
12.8
|
Stock-based compensation
|
|
5.1
|
|
3.9
|
(Gain) loss on investment in Persol Holdings
|
|
(121.8)
|
|
16.6
|
Gain
on insurance settlement
|
|
(19.0)
|
|
—
|
Gain
on sale of assets
|
|
—
|
|
(32.1)
|
Equity in net (earnings) loss of PersolKelly Pte. Ltd.
|
|
(5.4)
|
|
(0.8)
|
Other, net
|
|
6.0
|
|
1.4
|
Changes in
operating assets and liabilities, net of acquisitions
|
|
(10.2)
|
|
120.3
|
Net cash from
operating activities
|
|
85.0
|
|
186.0
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(11.2)
|
|
(15.5)
|
Proceeds from
sale of assets
|
|
—
|
|
55.5
|
Acquisition of
companies, net of cash received
|
|
(213.0)
|
|
(39.2)
|
Proceeds from
company-owned life insurance
|
|
12.2
|
|
2.3
|
Proceeds from
insurance settlement
|
|
19.0
|
|
—
|
Proceeds from
sale of Brazil, net of cash disposed
|
|
—
|
|
1.2
|
Proceeds
(payments) related to loans to equity affiliate
|
|
5.9
|
|
5.6
|
Proceeds from
(investment in) equity securities
|
|
5.0
|
|
(0.2)
|
Other investing
activities
|
|
1.4
|
|
0.1
|
Net cash (used in) from investing activities
|
|
(180.7)
|
|
9.8
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Net change in
short-term borrowings
|
|
(0.2)
|
|
(1.7)
|
Financing lease
payments
|
|
(1.5)
|
|
(2.0)
|
Dividend
payments
|
|
(4.0)
|
|
(3.0)
|
Payments of tax
withholding for stock awards
|
|
(0.6)
|
|
(1.2)
|
Contingent
consideration payments
|
|
(1.6)
|
|
—
|
Other financing
activities
|
|
(0.2)
|
|
(0.2)
|
Net cash used in financing activities
|
|
(8.1)
|
|
(8.1)
|
|
|
|
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
(4.8)
|
|
9.4
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
(108.6)
|
|
197.1
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
228.1
|
|
31.0
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of year
|
$
|
119.5
|
$
|
228.1
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
REVENUE FROM
SERVICES
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
%
|
|
CC %
|
|
|
|
(13
Wks)
|
|
(14
Wks)
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
908.6
|
$
|
891.0
|
|
2.0
|
%
|
2.0
|
%
|
Canada
|
|
38.1
|
|
33.8
|
|
12.6
|
|
8.6
|
|
Puerto
Rico
|
|
25.5
|
|
20.9
|
|
21.6
|
|
21.6
|
|
Mexico
|
|
10.6
|
|
35.8
|
|
(70.5)
|
|
(70.1)
|
|
Total Americas
Region
|
|
982.8
|
|
981.5
|
|
0.1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
Switzerland
|
|
61.0
|
|
59.2
|
|
3.1
|
|
4.9
|
|
France
|
|
55.0
|
|
57.0
|
|
(3.5)
|
|
0.5
|
|
Portugal
|
|
37.3
|
|
42.6
|
|
(12.4)
|
|
(8.6)
|
|
Russia
|
|
32.9
|
|
29.9
|
|
9.8
|
|
4.9
|
|
Italy
|
|
18.2
|
|
15.7
|
|
15.8
|
|
20.7
|
|
United
Kingdom
|
|
16.4
|
|
17.2
|
|
(4.5)
|
|
(6.7)
|
|
Germany
|
|
9.4
|
|
8.0
|
|
17.4
|
|
22.3
|
|
Ireland
|
|
8.0
|
|
5.9
|
|
36.9
|
|
42.4
|
|
Other
|
|
18.1
|
|
15.9
|
|
13.5
|
|
17.4
|
|
Total Europe
Region
|
|
256.3
|
|
251.4
|
|
2.0
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region
|
|
11.2
|
|
8.5
|
|
33.3
|
|
34.5
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly
Services, Inc.
|
$
|
1,250.3
|
$
|
1,241.4
|
|
0.7
|
%
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
REVENUE FROM
SERVICES
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
%
|
|
CC %
|
|
|
|
(52
Wks)
|
|
(53
Wks)
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
3,513.4
|
$
|
3,260.2
|
|
7.8
|
%
|
7.8
|
%
|
Canada
|
|
155.0
|
|
122.5
|
|
26.5
|
|
18.2
|
|
Puerto
Rico
|
|
102.1
|
|
77.0
|
|
32.5
|
|
32.5
|
|
Mexico
|
|
92.7
|
|
114.4
|
|
(19.0)
|
|
(23.2)
|
|
Brazil
|
|
—
|
|
17.0
|
|
NM
|
|
NM
|
|
Total Americas
Region
|
|
3,863.2
|
|
3,591.1
|
|
7.6
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
France
|
|
223.1
|
|
198.2
|
|
12.5
|
|
8.6
|
|
Switzerland
|
|
222.2
|
|
200.4
|
|
10.9
|
|
8.2
|
|
Portugal
|
|
158.2
|
|
141.7
|
|
11.7
|
|
7.6
|
|
Russia
|
|
132.2
|
|
118.5
|
|
11.5
|
|
14.3
|
|
Italy
|
|
74.2
|
|
58.2
|
|
27.4
|
|
23.0
|
|
United
Kingdom
|
|
68.3
|
|
73.7
|
|
(7.4)
|
|
(13.7)
|
|
Germany
|
|
34.0
|
|
30.1
|
|
13.0
|
|
9.7
|
|
Ireland
|
|
26.8
|
|
19.9
|
|
34.9
|
|
31.4
|
|
Other
|
|
68.0
|
|
54.6
|
|
24.5
|
|
20.4
|
|
Total Europe
Region
|
|
1,007.0
|
|
895.3
|
|
12.5
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region
|
|
39.5
|
|
29.6
|
|
33.8
|
|
27.7
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly
Services, Inc.
|
$
|
4,909.7
|
$
|
4,516.0
|
|
8.7
|
%
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
KELLY
SERVICES, INC. AND SUBSIDIARIES
|
RECONCILIATION
OF NON-GAAP MEASURES
|
FOURTH
QUARTER
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
2021
|
|
2020
|
SG&A
Expenses:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
|
Adjusted
|
Professional &
Industrial
|
$
70.8
|
|
$
—
|
|
$
70.8
|
|
$
76.5
|
Science, Engineering
& Technology
|
49.2
|
|
—
|
|
49.2
|
|
35.2
|
Education
|
15.6
|
|
—
|
|
15.6
|
|
13.3
|
Outsourcing &
Consulting
|
33.5
|
|
—
|
|
33.5
|
|
28.9
|
International
|
36.7
|
|
(1.2)
|
|
35.5
|
|
33.2
|
Corporate
|
24.9
|
|
(2.9)
|
|
22.0
|
|
23.1
|
Total
Company
|
$
230.7
|
|
$
(4.1)
|
|
$
226.6
|
|
$
210.2
|
|
2021
|
|
2020
|
Earnings (Loss) from
Operations:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
|
Adjusted
|
Professional &
Industrial
|
$
11.5
|
|
$
—
|
|
$
11.5
|
|
$
12.6
|
Science, Engineering
& Technology
|
16.9
|
|
—
|
|
16.9
|
|
18.2
|
Education
|
5.5
|
|
—
|
|
5.5
|
|
0.1
|
Outsourcing &
Consulting
|
4.5
|
|
—
|
|
4.5
|
|
3.8
|
International
|
1.8
|
|
1.2
|
|
3.0
|
|
2.3
|
Corporate
|
(24.9)
|
|
2.9
|
|
(22.0)
|
|
(23.1)
|
Total
Company
|
$
15.3
|
|
$
4.1
|
|
$
19.4
|
|
$
13.9
|
KELLY
SERVICES, INC. AND SUBSIDIARIES
|
RECONCILIATION
OF NON-GAAP MEASURES
|
FOURTH
QUARTER
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
2020
|
SG&A
Expenses:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
Professional &
Industrial
|
$
78.2
|
|
$
(1.7)
|
|
$
76.5
|
Science, Engineering
& Technology
|
35.3
|
|
(0.1)
|
|
35.2
|
Education
|
13.5
|
|
(0.2)
|
|
13.3
|
Outsourcing &
Consulting
|
29.2
|
|
(0.3)
|
|
28.9
|
International
|
33.5
|
|
(0.3)
|
|
33.2
|
Corporate
|
24.9
|
|
(1.8)
|
|
23.1
|
Total
Company
|
$
214.6
|
|
$
(4.4)
|
|
$
210.2
|
|
2020
|
Earnings (Loss) from
Operations:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
Professional &
Industrial
|
$
10.9
|
|
$
1.7
|
|
$
12.6
|
Science, Engineering
& Technology
|
18.1
|
|
0.1
|
|
18.2
|
Education
|
(0.1)
|
|
0.2
|
|
0.1
|
Outsourcing &
Consulting
|
3.5
|
|
0.3
|
|
3.8
|
International
|
2.0
|
|
0.3
|
|
2.3
|
Corporate
|
(24.9)
|
|
1.8
|
|
(23.1)
|
Total
Company
|
$
9.5
|
|
$
4.4
|
|
$
13.9
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP MEASURES
|
DECEMBER YEAR TO
DATE
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
SG&A
Expenses:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
|
Adjusted
|
Professional &
Industrial
|
$
278.6
|
|
$
—
|
|
$
278.6
|
|
$
282.6
|
Science, Engineering
& Technology
|
180.2
|
|
—
|
|
180.2
|
|
133.8
|
Education
|
62.1
|
|
—
|
|
62.1
|
|
50.2
|
Outsourcing &
Consulting
|
122.7
|
|
—
|
|
122.7
|
|
108.0
|
International
|
138.9
|
|
(1.2)
|
|
137.7
|
|
124.0
|
Corporate
|
88.1
|
|
(2.8)
|
|
85.3
|
|
84.7
|
Total
Company
|
$
870.6
|
|
$
(4.0)
|
|
$
866.6
|
|
$
783.3
|
|
2021
|
|
2020
|
Earnings (Loss) from
Operations:
|
As
Reported
|
|
Restructuring(5)
|
|
Adjusted
|
|
Adjusted
|
Professional &
Industrial
|
$
31.4
|
|
$
—
|
|
$
31.4
|
|
$
47.6
|
Science, Engineering
& Technology
|
73.7
|
|
—
|
|
73.7
|
|
75.6
|
Education
|
3.0
|
|
—
|
|
3.0
|
|
(8.0)
|
Outsourcing &
Consulting
|
18.7
|
|
—
|
|
18.7
|
|
11.8
|
International
|
9.9
|
|
1.2
|
|
11.1
|
|
2.0
|
Corporate
|
(88.1)
|
|
2.8
|
|
(85.3)
|
|
(84.7)
|
Total
Company
|
$
48.6
|
|
$
4.0
|
|
$
52.6
|
|
$
44.3
|
KELLY
SERVICES, INC. AND SUBSIDIARIES
|
RECONCILIATION
OF NON-GAAP MEASURES
|
DECEMBER YEAR TO
DATE
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
2020
|
SG&A
Expenses:
|
As
Reported
|
|
Customer
Dispute(4)
|
|
Restructuring(5)
|
|
Adjusted
|
Professional &
Industrial
|
$
288.6
|
|
$
—
|
|
$
(6.0)
|
|
$
282.6
|
Science, Engineering
& Technology
|
134.4
|
|
—
|
|
(0.6)
|
|
133.8
|
Education
|
51.2
|
|
—
|
|
(1.0)
|
|
50.2
|
Outsourcing &
Consulting
|
108.3
|
|
—
|
|
(0.3)
|
|
108.0
|
International
|
134.9
|
|
(9.5)
|
|
(1.4)
|
|
124.0
|
Corporate
|
88.2
|
|
—
|
|
(3.5)
|
|
84.7
|
Total
Company
|
$
805.6
|
|
$
(9.5)
|
|
$
(12.8)
|
|
$
783.3
|
|
2020
|
Earnings (Loss) from
Operations:
|
As
Reported
|
|
Goodwill
Impairment(1)
|
|
Gain on sale of
assets(3)
|
|
Customer
Dispute(4)
|
|
Restructuring(5)
|
|
Adjusted
|
Professional &
Industrial
|
$
41.6
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
6.0
|
|
$
47.6
|
Science, Engineering
& Technology
|
75.0
|
|
—
|
|
—
|
|
—
|
|
0.6
|
|
75.6
|
Education
|
(9.0)
|
|
—
|
|
—
|
|
—
|
|
1.0
|
|
(8.0)
|
Outsourcing &
Consulting
|
11.5
|
|
—
|
|
—
|
|
—
|
|
0.3
|
|
11.8
|
International
|
(8.9)
|
|
—
|
|
—
|
|
9.5
|
|
1.4
|
|
2.0
|
Corporate
|
(203.8)
|
|
147.7
|
|
(32.1)
|
|
—
|
|
3.5
|
|
(84.7)
|
Total
Company
|
$
(93.6)
|
|
$
147.7
|
|
$
(32.1)
|
|
$
9.5
|
|
$
12.8
|
|
$
44.3
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP MEASURES
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
December Year to
Date
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Income tax expense
(benefit)
|
|
$
16.1
|
|
$
2.5
|
|
$
35.1
|
|
$
(34.0)
|
Taxes on goodwill
impairment charge(1)
|
|
—
|
|
—
|
|
—
|
|
23.0
|
Taxes on investment in
Persol Holdings(2)
|
|
(15.3)
|
|
(4.5)
|
|
(37.3)
|
|
5.1
|
Taxes on gain on sale
of assets(3)
|
|
—
|
|
—
|
|
—
|
|
(8.1)
|
Taxes on customer
dispute(4)
|
|
—
|
|
—
|
|
—
|
|
2.8
|
Taxes on restructuring
charges(5)
|
|
1.0
|
|
1.0
|
|
1.0
|
|
3.2
|
Taxes on gain on
insurance settlement(6)
|
|
(4.8)
|
|
—
|
|
(4.8)
|
|
—
|
Adjusted income tax
expense (benefit)
|
|
$
(3.0)
|
|
$
(1.0)
|
|
$
(6.0)
|
|
$
(8.0)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
December Year to
Date
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net earnings
(loss)
|
|
$
71.7
|
|
$
23.4
|
|
$
156.1
|
|
$
(72.0)
|
Goodwill impairment
charge, net of taxes(1)
|
|
—
|
|
—
|
|
—
|
|
124.7
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(2)
|
|
(34.7)
|
|
(10.3)
|
|
(84.5)
|
|
11.5
|
(Gain) loss on sale of
assets, net of taxes(3)
|
|
—
|
|
—
|
|
—
|
|
(23.9)
|
Customer dispute, net
of taxes(4)
|
|
—
|
|
—
|
|
—
|
|
6.7
|
Restructuring charges,
net of taxes(5)
|
|
3.1
|
|
3.4
|
|
3.0
|
|
9.6
|
Gain on insurance
settlement, net of taxes(6)
|
|
(14.2)
|
|
—
|
|
(14.2)
|
|
—
|
Adjusted net
earnings
|
|
$
25.9
|
|
$
16.5
|
|
$
60.4
|
|
$
56.6
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
December Year to
Date
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Per
Share
|
|
Per
Share
|
Net earnings
(loss)
|
|
$
1.80
|
|
$
0.59
|
|
$
3.91
|
|
$
(1.83)
|
Goodwill impairment
charge, net of taxes(1)
|
|
—
|
|
—
|
|
—
|
|
3.17
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(2)
|
|
(0.87)
|
|
(0.26)
|
|
(2.12)
|
|
0.29
|
Gain on sale of assets,
net of taxes(3)
|
|
—
|
|
—
|
|
—
|
|
(0.61)
|
Customer dispute, net
of taxes(4)
|
|
—
|
|
—
|
|
—
|
|
0.17
|
Restructuring charges,
net of taxes(5)
|
|
0.08
|
|
0.08
|
|
0.07
|
|
0.24
|
Gain on insurance
settlement, net of taxes(6)
|
|
(0.36)
|
|
—
|
|
(0.36)
|
|
—
|
Adjusted net
earnings
|
|
$
0.65
|
|
$
0.41
|
|
$
1.51
|
|
$
1.44
|
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)
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
December Year to
Date
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net earnings
(loss)
|
$
71.7
|
|
$
23.4
|
|
$
156.1
|
|
$
(72.0)
|
Other (income) expense,
net
|
(0.4)
|
|
0.2
|
|
3.6
|
|
(3.4)
|
Income tax expense
(benefit)
|
16.1
|
|
2.5
|
|
35.1
|
|
(34.0)
|
Depreciation and
amortization
|
8.3
|
|
6.5
|
|
31.5
|
|
24.7
|
EBITDA
|
95.7
|
|
32.6
|
|
226.3
|
|
(84.7)
|
Equity in net
(earnings) loss of affiliate
|
(3.1)
|
|
(1.8)
|
|
(5.4)
|
|
(0.8)
|
Goodwill impairment
charge(1)
|
—
|
|
—
|
|
—
|
|
147.7
|
(Gain) loss on
investment in Persol Holdings(2)
|
(50.0)
|
|
(14.8)
|
|
(121.8)
|
|
16.6
|
Gain on sale of
assets(3)
|
—
|
|
—
|
|
—
|
|
(32.1)
|
Customer
dispute(4)
|
—
|
|
—
|
|
—
|
|
9.5
|
Restructuring(5)
|
4.1
|
|
4.4
|
|
4.0
|
|
12.8
|
Gain on insurance
settlement(6)
|
(19.0)
|
|
—
|
|
(19.0)
|
|
—
|
Adjusted
EBITDA
|
$
27.7
|
|
$
20.4
|
|
$
84.1
|
|
$
69.0
|
Adjusted EBITDA
margin
|
2.2
%
|
|
1.6
%
|
|
1.7
%
|
|
1.5
%
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
RECONCILIATION 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, the
2020 customer dispute, the 2021 and 2020 restructuring charges and
the 2021 gain on insurance settlement 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)
|
Customer dispute in
2020 represents a non-cash charge in Mexico to increase the reserve
against a long-term receivable from a former customer based on an
updated probability of loss assessment.
|
|
|
(5)
|
Restructuring charges
in 2021 represent severance costs as part of cost management
actions designed to increase operational efficiencies within
enterprise functions that provide centralized support to operating
units. Restructuring charges in 2020 represent severance
costs and lease terminations in preparation for the new operating
model adopted in the third quarter of 2020.
|
|
|
(6)
|
Gain on insurance
settlement represents a payment received in the fourth quarter of
2021 related to the settlement of claims under a representations
and warranties insurance policy purchased by the Company in
connection with the acquisition of Softworld.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/kelly-reports-fourth-quarter-and-full-year-earnings-2021-301481098.html
SOURCE Kelly Services, Inc.