- Q1 revenue up 7.5%; 9.0% in constant currency
- Q1 operating earnings of $23.4
million; up 121% from a year ago
- Q1 loss per share of $1.23
down from a year ago on a non-cash loss on Persol Holdings
investment
- Adjusted EPS of $0.46 in Q1;
up from $0.12 a year ago
- Created $235M of liquidity by
ending the cross-ownership between Kelly and Persol Holdings and
reducing our ownership interest in PersolKelly, the companies'
joint venture in the APAC region
- Completed the first quarter acquisition of RocketPower to
strengthen our RPO practice and acquired Pediatric Therapeutic
Services in May to extend our leading position in K-12
education
TROY,
Mich., May 12, 2022 /PRNewswire/ -- Kelly
(Nasdaq: KELYA, KELYB), a leading specialty talent solutions
provider, today announced results for the first quarter of
2022.
Peter Quigley, president and
chief executive officer, announced revenue for the first quarter of
2022 totaled $1.3 billion, a 7.5%
increase, or 9.0% in constant currency, compared to the
corresponding quarter of 2021. Revenue improved year-over-year in
the quarter reflecting increased customer demand compared to the
COVID-19-impacted prior year period, as well as the impact of the
Q2 2021 acquisition of Softworld.
Earnings from operations in the first quarter of 2022 totaled
$23.4 million, compared to
$10.6 million reported in the first
quarter of 2021. Earnings improved as a result of revenue growth
combined with structural improvement in gross profit rate and
expense leverage.
The loss per share in the first quarter of 2022 was $1.23 compared to diluted earnings per share of
$0.64 in the first quarter of 2021.
Included in the loss per share in the first quarter of 2022 is a
loss, net of tax, on Kelly's investment in Persol Holdings common
stock of $1.26 per share compared to
a gain, net of tax, of $0.52 per
share in the first quarter of 2021. In addition, the loss per share
in the first quarter of 2022 includes a $0.43 loss per share on non-cash foreign currency
matters, net of tax, related to the dissolution of our Japanese
subsidiary following the sale of the Persol Holding common shares.
On an adjusted basis, earnings per share were $0.46 in the first quarter of 2022 compared to
$0.12 in the corresponding quarter of
2021.
"Kelly's first quarter performance proves that our growth
strategy is paying off," said Quigley. "We achieved significant
year-over-year improvement in revenue; our GP rate reached its
highest level in 25 years; and we more than doubled earnings from
operations. At the same time, we're acting quickly to redeploy
capital and accelerate inorganic growth. Our acquisitions of
RocketPower in March and Pediatric Therapeutic Services in May both
expand Kelly's presence in high-growth, high-margin specialties,
and offer significant opportunities for top-line synergies moving
forward."
Kelly also reported that on May
10, its board of directors declared an increased dividend of
$0.075 per share. The dividend
is payable June 9, 2022, to
shareholders of record as of the close of business on May 26, 2022 and represents a 50% increase.
Commenting on the dividend increase, Quigley said, "We are pleased
that our improving operating results and strategic progress have
given us the ability to return our dividend back to pre-pandemic
levels and enhance shareholder value."
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 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 5728672
After the
prompt, please enter "#"
A recording of the conference call will be available after
2:30 p.m. ET on May 12, 2022, at (866) 207-1041 (toll-free) and
(402) 970-0847 (caller-paid). The access code is 6759661#. 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, risks associated with conducting business in foreign
countries, including foreign currency fluctuations, 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
|
|
|
james.polehna@kellyservices.com
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF
EARNINGS
|
FOR THE 13 WEEKS ENDED APRIL 3, 2022 AND APRIL 4,
2021
|
(UNAUDITED)
|
(In millions of
dollars except per share data)
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
1,296.4
|
$
|
1,205.9
|
$
|
90.5
|
|
7.5
|
%
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,037.8
|
|
992.6
|
|
45.2
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
258.6
|
|
213.3
|
|
45.3
|
|
21.2
|
|
22.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
235.2
|
|
202.7
|
|
32.5
|
|
16.0
|
|
17.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations
|
|
23.4
|
|
10.6
|
|
12.8
|
|
120.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
investment in Persol Holdings
|
|
(67.2)
|
|
30.0
|
|
(97.2)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on currency
translation from liquidation of subsidiary(1)
|
|
(20.4)
|
|
—
|
|
(20.4)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
2.8
|
|
(3.4)
|
|
6.2
|
|
181.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before taxes and equity in net
earnings (loss) of affiliate
|
|
(61.4)
|
|
37.2
|
|
(98.6)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(13.0)
|
|
10.5
|
|
(23.5)
|
|
(223.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) before equity in net earnings
(loss) of affiliate
|
|
(48.4)
|
|
26.7
|
|
(75.1)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(loss) of affiliate
|
|
0.8
|
|
(1.1)
|
|
1.9
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
(47.6)
|
$
|
25.6
|
$
|
(73.2)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
$
|
(1.23)
|
$
|
0.65
|
$
|
(1.88)
|
|
NM
|
|
|
|
Diluted earnings (loss) per
share
|
$
|
(1.23)
|
$
|
0.64
|
$
|
(1.87)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement
revenue (included in revenue from services)
|
$
|
26.6
|
$
|
16.0
|
$
|
10.6
|
|
66.2
|
%
|
68.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
19.9
|
%
|
17.7
|
%
|
2.2
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate
|
|
9.1
|
%
|
5.0
|
%
|
4.1
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
31.6
|
$
|
16.9
|
$
|
14.7
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
2.4
|
%
|
1.4
|
%
|
1.0
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
21.2
|
%
|
28.3
|
%
|
(7.1)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
38.6
|
|
39.3
|
|
|
|
|
|
|
|
Diluted
|
|
38.6
|
|
39.5
|
|
|
|
|
|
|
|
|
(1) Subsequent to the
sale of the Persol Holdings investment, the Company commenced the
dissolution process of the Kelly Services Japan subsidiary, which
was considered substantially liquidated as of the first quarter-end
2022, resulting in the recognition of the $20.4 million loss on
currency translation from liquidation of this subsidiary in the
first quarter of 2022.
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
RESULTS OF OPERATIONS BY
SEGMENT
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
|
2021
|
|
Change
|
|
Change
|
|
Professional & Industrial
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
444.3
|
|
$
|
467.6
|
|
(5.0)
|
%
|
(5.0)
|
%
|
Gross profit
|
|
83.1
|
|
|
75.9
|
|
9.4
|
|
9.4
|
|
Total SG&A expenses
|
|
71.4
|
|
|
69.4
|
|
2.8
|
|
2.8
|
|
Earnings (loss) from operations
|
|
11.7
|
|
|
6.5
|
|
79.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate
|
|
18.7
|
%
|
|
16.2
|
%
|
2.5
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering &
Technology
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
317.1
|
|
$
|
254.7
|
|
24.5
|
%
|
24.6
|
%
|
Gross profit
|
|
73.8
|
|
|
53.2
|
|
38.8
|
|
38.9
|
|
Total SG&A expenses
|
|
53.2
|
|
|
35.7
|
|
49.0
|
|
49.1
|
|
Earnings (loss) from operations
|
|
20.6
|
|
|
17.5
|
|
18.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate
|
|
23.3
|
%
|
|
20.9
|
%
|
2.4
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
173.4
|
|
$
|
111.6
|
|
55.4
|
%
|
55.4
|
%
|
Gross profit
|
|
26.6
|
|
|
17.2
|
|
54.8
|
|
54.8
|
|
Total SG&A expenses
|
|
18.6
|
|
|
14.2
|
|
31.2
|
|
31.2
|
|
Earnings (loss) from operations
|
|
8.0
|
|
|
3.0
|
|
166.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate
|
|
15.3
|
%
|
|
15.4
|
%
|
(0.1)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing & Consulting
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
109.1
|
|
$
|
99.3
|
|
9.8
|
%
|
10.5
|
%
|
Gross profit
|
|
37.3
|
|
|
31.3
|
|
19.0
|
|
20.3
|
|
Total SG&A expenses
|
|
34.3
|
|
|
28.4
|
|
20.5
|
|
21.4
|
|
Earnings (loss) from operations
|
|
3.0
|
|
|
2.9
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate
|
|
34.2
|
%
|
|
31.5
|
%
|
2.7
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
Revenue from services
|
$
|
252.8
|
|
$
|
272.9
|
|
(7.4)
|
%
|
(1.0)
|
%
|
Gross profit
|
|
37.8
|
|
|
35.7
|
|
6.0
|
|
12.9
|
|
Total SG&A expenses
|
|
33.2
|
|
|
33.1
|
|
0.4
|
|
6.6
|
|
Earnings (loss) from operations
|
|
4.6
|
|
|
2.6
|
|
75.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate
|
|
15.0
|
%
|
|
13.1
|
%
|
1.9
|
pts.
|
|
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
April 3, 2022
|
|
January 2, 2022
|
|
April 4, 2021
|
|
Current Assets
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
230.3
|
$
|
112.7
|
$
|
239.4
|
|
Trade accounts
receivable, less allowances of
|
|
|
|
|
|
|
|
$12.2, $12.6, and $12.6, respectively
|
|
1,523.8
|
|
1,423.2
|
|
1,279.7
|
|
Prepaid expenses
and other current assets
|
|
72.2
|
|
52.8
|
|
76.5
|
|
Total current
assets
|
|
1,826.3
|
|
1,588.7
|
|
1,595.6
|
|
|
|
|
|
|
|
|
|
Noncurrent Assets
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
32.0
|
|
35.3
|
|
38.9
|
|
Operating lease
right-of-use assets
|
|
71.8
|
|
75.8
|
|
79.0
|
|
Deferred
taxes
|
|
303.6
|
|
302.8
|
|
286.4
|
|
Goodwill,
net
|
|
155.8
|
|
114.8
|
|
3.5
|
|
Investment in
Persol Holdings
|
|
—
|
|
264.3
|
|
181.7
|
|
Investment in
equity affiliate
|
|
—
|
|
123.4
|
|
118.7
|
|
Other
assets
|
|
396.1
|
|
389.1
|
|
306.3
|
|
Total noncurrent
assets
|
|
959.3
|
|
1,305.5
|
|
1,014.5
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
2,785.6
|
$
|
2,894.2
|
$
|
2,610.1
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
0.2
|
$
|
—
|
$
|
1.1
|
|
Accounts payable
and accrued liabilities
|
|
711.6
|
|
687.2
|
|
554.3
|
|
Operating lease
liabilities
|
|
16.1
|
|
17.5
|
|
18.8
|
|
Accrued payroll
and related taxes
|
|
338.9
|
|
318.4
|
|
309.9
|
|
Accrued workers'
compensation and other claims
|
|
20.4
|
|
20.8
|
|
21.9
|
|
Income and other
taxes
|
|
109.1
|
|
51.3
|
|
56.9
|
|
Total current
liabilities
|
|
1,196.3
|
|
1,095.2
|
|
962.9
|
|
|
|
|
|
|
|
|
|
Noncurrent Liabilities
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
58.7
|
|
61.4
|
|
63.9
|
|
Accrued payroll
and related taxes
|
|
—
|
|
57.6
|
|
58.5
|
|
Accrued workers'
compensation and other claims
|
|
36.4
|
|
37.0
|
|
40.7
|
|
Accrued
retirement benefits
|
|
205.1
|
|
220.0
|
|
204.7
|
|
Other long-term
liabilities
|
|
15.6
|
|
86.8
|
|
63.7
|
|
Total noncurrent
liabilities
|
|
315.8
|
|
462.8
|
|
431.5
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
Common
stock
|
|
38.5
|
|
40.1
|
|
40.1
|
|
Treasury
stock
|
|
(13.0)
|
|
(15.1)
|
|
(15.7)
|
|
Paid-in
capital
|
|
22.8
|
|
23.9
|
|
20.6
|
|
Earnings
invested in the business
|
|
1,239.9
|
|
1,315.0
|
|
1,188.5
|
|
Accumulated
other comprehensive income (loss)
|
|
(14.7)
|
|
(27.7)
|
|
(17.8)
|
|
Total stockholders'
equity
|
|
1,273.5
|
|
1,336.2
|
|
1,215.7
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
$
|
2,785.6
|
$
|
2,894.2
|
$
|
2,610.1
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
Working
Capital
|
$
|
630.0
|
$
|
493.5
|
$
|
632.7
|
|
Current
Ratio
|
|
1.5
|
|
1.5
|
|
1.7
|
|
Debt-to-capital
%
|
|
0.0
|
%
|
0.0
|
%
|
0.1
|
%
|
Global Days Sales
Outstanding
|
|
62
|
|
60
|
|
60
|
|
Year-to-Date Free
Cash Flow
|
$
|
(107.8)
|
$
|
73.8
|
$
|
7.8
|
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
FOR THE 13 WEEKS ENDED APRIL 3, 2022 AND APRIL 4,
2021
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
2022
|
|
2021
|
Cash flows from operating
activities:
|
|
|
|
|
Net
earnings (loss)
|
$
|
(47.6)
|
$
|
25.6
|
Adjustments to reconcile net earnings (loss) to net cash from
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
7.5
|
|
5.9
|
Operating lease asset
amortization
|
|
5.0
|
|
5.2
|
Provision for credit losses and
sales allowances
|
|
0.8
|
|
(0.1)
|
Stock-based
compensation
|
|
2.1
|
|
1.4
|
(Gain) loss on investment in
Persol Holdings
|
|
67.2
|
|
(30.0)
|
Loss on currency translation
from liquidation of subsidiary
|
|
20.4
|
|
—
|
Gain on foreign currency
remeasurement
|
|
(5.5)
|
|
—
|
Equity in net (earnings) loss
of PersolKelly Pte. Ltd.
|
|
(0.8)
|
|
1.1
|
Other, net
|
|
0.8
|
|
1.3
|
Changes in operating assets and liabilities, net of
acquisitions
|
|
(156.0)
|
|
0.1
|
|
|
|
|
|
Net
cash (used in) from operating activities
|
|
(106.1)
|
|
10.5
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Capital expenditures
|
|
(1.7)
|
|
(2.7)
|
Acquisition of companies, net of cash received
|
|
(58.3)
|
|
—
|
Proceeds from company-owned life insurance
|
|
—
|
|
10.4
|
Proceeds from sale of Persol Holdings investment
|
|
196.9
|
|
—
|
Proceeds from sale of equity method investment
|
|
119.5
|
|
—
|
Other investing activities
|
|
0.7
|
|
0.2
|
|
|
|
|
|
Net
cash from investing activities
|
|
257.1
|
|
7.9
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Net
change in short-term borrowings
|
|
0.2
|
|
0.8
|
Financing lease payments
|
|
(0.3)
|
|
(0.2)
|
Dividend payments
|
|
(1.9)
|
|
—
|
Payments of tax withholding for stock awards
|
|
(0.8)
|
|
(0.5)
|
Buyback of common shares
|
|
(27.2)
|
|
—
|
Contingent consideration payments
|
|
(0.7)
|
|
—
|
|
|
|
|
|
Net
cash (used in) from financing activities
|
|
(30.7)
|
|
0.1
|
|
|
|
|
|
Effect of exchange rates on cash, cash equivalents
and restricted cash
|
|
(1.7)
|
|
(1.4)
|
|
|
|
|
|
Net change in cash, cash equivalents and restricted
cash
|
|
118.6
|
|
17.1
|
Cash, cash equivalents and restricted cash at
beginning of period
|
|
119.5
|
|
228.1
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at end of
period
|
$
|
238.1
|
$
|
245.2
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
REVENUE FROM SERVICES BY
GEOGRAPHY
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
United States
|
$
|
956.6
|
$
|
858.5
|
|
11.4
|
%
|
11.4
|
%
|
Canada
|
|
39.1
|
|
34.1
|
|
14.8
|
|
14.9
|
|
Puerto Rico
|
|
27.6
|
|
24.2
|
|
14.0
|
|
14.0
|
|
Mexico
|
|
10.3
|
|
34.6
|
|
(70.1)
|
|
(70.0)
|
|
Total Americas Region
|
|
1,033.6
|
|
951.4
|
|
8.7
|
|
8.7
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
Switzerland
|
|
55.0
|
|
52.7
|
|
4.3
|
|
6.3
|
|
France
|
|
54.6
|
|
54.3
|
|
0.6
|
|
8.0
|
|
Portugal
|
|
41.9
|
|
43.7
|
|
(4.2)
|
|
2.9
|
|
Russia
|
|
29.7
|
|
32.6
|
|
(9.1)
|
|
6.3
|
|
Italy
|
|
19.5
|
|
18.1
|
|
7.6
|
|
15.5
|
|
United Kingdom
|
|
15.0
|
|
17.0
|
|
(11.9)
|
|
(9.3)
|
|
Other
|
|
36.3
|
|
27.8
|
|
30.8
|
|
40.3
|
|
Total Europe Region
|
|
252.0
|
|
246.2
|
|
2.3
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific Region
|
|
10.8
|
|
8.3
|
|
29.6
|
|
35.4
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly Services, Inc.
|
$
|
1,296.4
|
$
|
1,205.9
|
|
7.5
|
%
|
9.0
|
%
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF NON-GAAP
MEASURES
|
(UNAUDITED)
|
(In millions of
dollars except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2022
|
|
2021
|
Income tax expense
(benefit)
|
|
$
(13.0)
|
|
$
10.5
|
Taxes on investment in
Persol Holdings(1)
|
|
18.4
|
|
(9.2)
|
Taxes on foreign
currency matters(2)
|
|
(1.5)
|
|
—
|
Adjusted income tax
expense (benefit)
|
|
$
3.9
|
|
$
1.3
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2022
|
|
2021
|
Net earnings
(loss)
|
|
$
(47.6)
|
|
$
25.6
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(1)
|
|
48.8
|
|
(20.8)
|
Loss on foreign
currency matters, net of taxes(2)
|
|
16.4
|
|
—
|
Adjusted net
earnings
|
|
$
17.6
|
|
$
4.8
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2022
|
|
2021
|
|
|
Per Share
|
Net earnings
(loss)
|
|
$
(1.23)
|
|
$
0.64
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(1)
|
|
1.26
|
|
(0.52)
|
Loss on foreign
currency matters, net of taxes(2)
|
|
0.43
|
|
—
|
Adjusted net
earnings
|
|
$
0.46
|
|
$
0.12
|
|
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)
|
|
|
|
|
|
First Quarter
|
|
2022
|
|
2021
|
Net earnings
(loss)
|
$
(47.6)
|
|
$
25.6
|
Other (income) expense,
net(2)
|
(2.8)
|
|
3.4
|
Income tax expense
(benefit)
|
(13.0)
|
|
10.5
|
Depreciation and
amortization
|
8.2
|
|
6.3
|
EBITDA
|
(55.2)
|
|
45.8
|
Equity in net
(earnings) loss of affiliate
|
(0.8)
|
|
1.1
|
(Gain) loss on
investment in Persol Holdings(1)
|
67.2
|
|
(30.0)
|
Loss on foreign
currency matters(2)
|
20.4
|
|
—
|
Adjusted EBITDA
|
$
31.6
|
|
$
16.9
|
Adjusted EBITDA margin
|
2.4%
|
|
1.4%
|
KELLY SERVICES, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted
Accounting Principles) information excluding the 2022 sale of the
Persol Holdings investment, the 2022 and 2021 gains and losses on
the fair value changes of the investment in Persol Holdings, and
the 2022 losses on foreign currency matters, are useful to
understand the Company's fiscal 2022 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) In 2022, the loss on the investment in
Persol Holdings represents the change in fair value up until the
date of the sale of the investment on February 15, 2022 as well as the loss on the sale
of the investment during the period presented and the related tax
benefit. In 2021, the gain on the investment in Persol
Holdings represents the change in fair value of the investment
during the period presented and the related tax expense.
(2) In 2022, the loss on foreign currency
matters includes a $20.4 million loss
on currency translation resulting from the substantially complete
liquidation of the Company's Japan
entity, partially offset by a $5.5
million foreign exchange gain on the Japan entity's USD-denominated cash
balance. The foreign exchange gain is included in other
(income) expense, net in the EBITDA calculation.
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SOURCE Kelly Services, Inc.