Kelly (Nasdaq: KELYA) (Nasdaq: KELYB), a leading specialty talent
solutions provider, today announced results for the fourth quarter
and full year of 2020. The company’s 2020 fiscal year is a 53-week
year and the fourth quarter of 2020 includes 14 weeks.
Peter Quigley, president and chief executive officer, announced
revenue for the fourth quarter of 2020 totaled $1.2 billion, a 7.2%
decline compared to the corresponding quarter of 2019. Revenue
declined year-over-year in the quarter as the continuing effects of
the COVID-19 crisis impacted customer demand.
Earnings from operations in the fourth quarter of 2020 totaled
$9.5 million, compared to earnings of $13.1 million reported in the
fourth quarter of 2019. The 2020 fourth-quarter results include a
$4.4 million restructuring charge. The 2019 fourth-quarter results
included a $15.8 million asset impairment charge related to a
technology development project. On an adjusted basis, earnings from
operations were $13.9 million compared to $28.8 million in the
corresponding quarter of 2019.
The operating loss for the full year of 2020 totaled $93.6
million, compared to earnings of $81.8 million reported for the
full year of 2019. 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. The 2019 full-year results included a $15.8
million asset impairment charge related to a technology development
project, restructuring charges of $5.5 million, and a gain on sale
of assets of $12.3 million. On an adjusted basis, earnings from
operations were $44.3 million compared to $90.8 million in
2019.
Diluted earnings per share in the fourth quarter of 2020 were
$0.59 compared to $0.43 per share in the fourth quarter of 2019.
Included in the earnings per share in the fourth quarter of 2020 is
a non-cash gain, net of tax, on Kelly’s investment in Persol
Holdings common stock of $0.26, 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 2019 is a $0.30 per
share charge for an asset impairment charge related to a technology
development project, net of tax, and $0.01 from a non-cash gain per
share on Kelly’s investment in Persol Holdings common stock, net of
tax. On an adjusted basis, earnings per share were $0.41 in the
fourth quarter of 2020 compared to $0.71 in the corresponding
quarter of 2019.
Diluted losses per share for the full year of 2020 were $1.83
compared to earnings per share of $2.84 for the full year of 2019.
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. Included in the earnings per share for the full
year of 2019 is $0.63 from a non-cash gain per share on Kelly’s
investment in Persol Holdings common stock, net of tax; and a $0.23
gain on sale of assets, net of tax, partially offset by a $0.30
loss per share related to asset impairment charges, net of tax and
a $0.10 per share restructuring charge, net of tax. On an adjusted
basis, earnings per share were $1.44 for the full year of 2020
compared to $2.38 for the full year of 2019.
“Each of Kelly’s five operating segments reported sequential
revenue improvement in the fourth quarter, continuing the trend of
top-line growth we’ve seen each quarter since the low point of the
COVID-19 crisis,” said Quigley. “Our OCG segment showed particular
strength and resilience, surpassing pre-COVID revenue levels. These
results reflect gradually improving economic conditions, coupled
with traction from our specialization strategy and the operating
model we implemented mid-2020. Looking ahead, we’re optimistic that
we’ll benefit from a recovery that gains momentum throughout 2021,
with pipelines for both organic and inorganic growth strengthening.
We’re confident we’ve positioned Kelly to pursue profitable growth
coming out of the pandemic and well into the future.”
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 18 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 February 18, 2021 at (866) 207-1041 (toll-free) and
(402) 970-0847 (caller-paid). The access code is 4671104#. The
recording will also be available at kellyservices.com during this
period.
This release contains statements that are forward looking in
nature and, accordingly, are subject to risks and uncertainties.
These factors include, but are not limited to, changing market and
economic conditions, the recent novel coronavirus (COVID-19)
outbreak, competitive market pressures including pricing and
technology introductions and disruptions, disruption in the labor
market and weakened demand for human capital resulting from
technological advances, competition law risks, the impact of
changes in laws and regulations (including federal, state and
international tax laws), unexpected changes in claim trends on
workers’ compensation, unemployment, disability and medical benefit
plans, or the risk of additional tax liabilities in excess of our
estimates, our ability to achieve our business strategy, our
ability to successfully develop new service offerings, material
changes in demand from or loss of large corporate customers as well
as changes in their buying practices, risks particular to doing
business with government or government contractors, the risk of
damage to our brand, our exposure to risks associated with services
outside traditional staffing, including business process
outsourcing, services of licensed professionals and services
connecting talent to independent work, our increasing dependency on
third parties for the execution of critical functions, our ability
to effectively implement and manage our information technology
strategy, the risks associated with past and future acquisitions,
including risk of related impairment of goodwill and intangible
assets, exposure to risks associated with investments in equity
affiliates including PersolKelly Pte. Ltd., risks associated with
conducting business in foreign countries, including foreign
currency fluctuations, the exposure to potential market and
currency exchange risks relating to our investment in Persol
Holdings, risks associated with violations of anti-corruption,
trade protection and other laws and regulations, availability of
qualified full-time employees, availability of temporary workers
with appropriate skills required by customers, liabilities for
employment-related claims and losses, including class action
lawsuits and collective actions, our ability to sustain critical
business applications through our key data centers, risks arising
from failure to preserve the privacy of information entrusted to us
or to meet our obligations under global privacy laws, the risk of
cyberattacks or other breaches of network or information technology
security, our ability to realize value from our tax credit and net
operating loss carryforwards, our ability to maintain specified
financial covenants in our bank facilities to continue to access
credit markets, and other risks, uncertainties and factors
discussed in this release and in the Company’s filings with the
Securities and Exchange Commission.. Actual results may differ
materially from any forward-looking statements contained herein,
and we undertake no duty to update any forward-looking statement to
conform the statement to actual results or changes in the Company’s
expectations.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) connects talented
people to companies in need of their skills in areas including
Science, Engineering, Education, Office, Contact Center, Light
Industrial, and more. We’re always thinking about what’s next in
the evolving world of work, and we help people ditch the script on
old ways of thinking and embrace the value of all workstyles in the
workplace. We directly employ nearly 370,000 people around the
world, and we connect thousands more with work through our global
network of talent suppliers and partners in our outsourcing and
consulting practice. Revenue in 2020 was $4.5 billion. Visit
kellyservices.com and let us help with what’s next for you.
MEDIA CONTACT: |
|
|
ANALYST CONTACT: |
Jane Stehney |
|
|
James Polehna |
(248) 574-9800 |
|
|
(248) 244-4586 |
stehnja@kellyservices.com |
|
|
james.polehna@kellyservices.com |
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF EARNINGS |
FOR THE 14 WEEKS ENDED JANUARY 3, 2021 AND 13 WEEKS ENDED
DECEMBER 29, 2019 |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
2020 |
|
2019 |
|
Change |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
from services |
$ |
1,241.4 |
|
|
$ |
1,337.8 |
|
|
$ |
(96.4 |
) |
|
|
(7.2 |
) |
|
% |
(7.8 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services |
|
1,017.3 |
|
|
|
1,092.7 |
|
|
|
(75.4 |
) |
|
|
(6.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
224.1 |
|
|
|
245.1 |
|
|
|
(21.0 |
) |
|
|
(8.5 |
) |
|
|
(9.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses |
|
214.6 |
|
|
|
216.2 |
|
|
|
(1.6 |
) |
|
|
(0.7 |
) |
|
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
charge |
|
— |
|
|
|
15.8 |
|
|
|
(15.8 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
from operations |
|
9.5 |
|
|
|
13.1 |
|
|
|
(3.6 |
) |
|
|
(27.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
investment in Persol Holdings |
|
14.8 |
|
|
|
0.7 |
|
|
|
14.1 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(109.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
before taxes and equity in net earnings (loss) of
affiliate |
|
24.1 |
|
|
|
13.7 |
|
|
|
10.4 |
|
|
|
76.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
2.5 |
|
|
|
(5.9 |
) |
|
|
8.4 |
|
|
|
143.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings before equity in net earnings (loss) of
affiliate |
|
21.6 |
|
|
|
19.6 |
|
|
|
2.0 |
|
|
|
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net
earnings (loss) of affiliate |
|
1.8 |
|
|
|
(2.6 |
) |
|
|
4.4 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings |
$ |
23.4 |
|
|
$ |
17.0 |
|
|
$ |
6.4 |
|
|
|
37.6 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.59 |
|
|
$ |
0.43 |
|
|
$ |
0.16 |
|
|
|
37.2 |
|
|
% |
|
|
Diluted
earnings per share |
$ |
0.59 |
|
|
$ |
0.43 |
|
|
$ |
0.16 |
|
|
|
37.2 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent
placement income (included in revenue from services) |
$ |
10.8 |
|
|
$ |
13.4 |
|
|
$ |
(2.6 |
) |
|
|
(19.0 |
) |
|
% |
(19.6 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate |
|
18.1 |
|
|
% |
18.3 |
|
|
% |
(0.2 |
) |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate |
|
4.2 |
|
|
|
5.3 |
|
|
|
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Return: |
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
0.8 |
|
|
|
1.0 |
|
|
|
(0.2 |
) |
|
|
|
|
|
|
Net earnings |
|
1.9 |
|
|
|
1.3 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income
tax rate |
|
10.6 |
|
|
% |
(43.2 |
) |
|
% |
53.8 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions): |
|
|
|
|
|
|
|
|
|
|
Basic |
|
39.3 |
|
|
|
39.1 |
|
|
|
|
|
|
|
|
|
Diluted |
|
39.4 |
|
|
|
39.3 |
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF EARNINGS |
|
FOR THE 53 WEEKS ENDED JANUARY 3, 2021 AND 52 WEEKS ENDED
DECEMBER 29, 2019 |
|
(UNAUDITED) |
|
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
|
% |
|
CC % |
|
|
|
|
2020 |
|
2019 |
|
Change |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services |
$ |
4,516.0 |
|
|
$ |
5,355.6 |
|
|
$ |
(839.6 |
) |
|
|
(15.7 |
) |
|
% |
(15.5 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
3,688.4 |
|
|
|
4,387.2 |
|
|
|
(698.8 |
) |
|
|
(15.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
827.6 |
|
|
|
968.4 |
|
|
|
(140.8 |
) |
|
|
(14.5 |
) |
|
|
(14.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
805.6 |
|
|
|
883.1 |
|
|
|
(77.5 |
) |
|
|
(8.8 |
) |
|
|
(8.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charge |
|
147.7 |
|
|
|
— |
|
|
|
147.7 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(32.1 |
) |
|
|
(12.3 |
) |
|
|
(19.8 |
) |
|
|
(161.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment charge |
|
— |
|
|
|
15.8 |
|
|
|
(15.8 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations |
|
(93.6 |
) |
|
|
81.8 |
|
|
|
(175.4 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on investment in
Persol Holdings |
|
(16.6 |
) |
|
|
35.8 |
|
|
|
(52.4 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
3.4 |
|
|
|
(1.2 |
) |
|
|
4.6 |
|
|
|
369.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before
taxes and equity in net earnings (loss) of affiliate |
|
(106.8 |
) |
|
|
116.4 |
|
|
|
(223.2 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
(34.0 |
) |
|
|
0.4 |
|
|
|
(34.4 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate |
|
(72.8 |
) |
|
|
116.0 |
|
|
|
(188.8 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings (loss)
of affiliate |
|
0.8 |
|
|
|
(3.6 |
) |
|
|
4.4 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) |
$ |
(72.0 |
) |
|
$ |
112.4 |
|
|
$ |
(184.4 |
) |
|
|
NM |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
$ |
(1.83 |
) |
|
$ |
2.85 |
|
|
$ |
(4.68 |
) |
|
|
NM |
% |
|
|
|
Diluted earnings
(loss) per share |
$ |
(1.83 |
) |
|
$ |
2.84 |
|
|
$ |
(4.67 |
) |
|
|
NM |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement income
(included in revenue from services) |
$ |
39.7 |
|
|
$ |
60.1 |
|
|
$ |
(20.4 |
) |
|
|
(33.9 |
) |
|
% |
(33.6 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
18.3 |
|
|
% |
18.1 |
|
|
% |
0.2 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion rate |
|
(11.3 |
) |
|
|
8.4 |
|
|
|
(19.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Return: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations |
|
(2.1 |
) |
|
|
1.5 |
|
|
|
(3.6 |
) |
|
|
|
|
|
|
|
Net earnings (loss) |
|
(1.6 |
) |
|
|
2.1 |
|
|
|
(3.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
31.8 |
|
|
% |
0.3 |
|
|
% |
31.5 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
39.3 |
|
|
|
39.1 |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
39.3 |
|
|
|
39.2 |
|
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS BY SEGMENT |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
|
2020(14 Wks) |
|
|
2019(13 Wks) |
|
%Change |
|
CC %Change |
|
Professional &
Industrial |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
511.7 |
|
|
|
$ |
544.7 |
|
|
|
(6.1 |
) |
|
% |
(6.1 |
) |
|
% |
Gross profit |
|
89.1 |
|
|
|
|
96.8 |
|
|
|
(8.0 |
) |
|
|
(8.1 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
76.5 |
|
|
|
|
79.2 |
|
|
|
(3.5 |
) |
|
|
(3.6 |
) |
|
|
Restructuring charges |
|
1.7 |
|
|
|
|
(0.1 |
) |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
78.2 |
|
|
|
|
79.1 |
|
|
|
(1.2 |
) |
|
|
(1.2 |
) |
|
|
Earnings (loss) from operations |
|
10.9 |
|
|
|
|
17.7 |
|
|
|
(38.5 |
) |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
12.6 |
|
|
|
|
17.6 |
|
|
|
(28.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
17.4 |
|
|
% |
|
17.8 |
|
|
% |
(0.4 |
) |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
257.6 |
|
|
|
$ |
272.1 |
|
|
|
(5.3 |
) |
|
% |
(5.3 |
) |
|
% |
Gross profit |
|
53.4 |
|
|
|
|
54.4 |
|
|
|
(1.7 |
) |
|
|
(1.8 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
35.2 |
|
|
|
|
35.3 |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
Restructuring charges |
|
0.1 |
|
|
|
|
— |
|
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
35.3 |
|
|
|
|
35.3 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
Earnings (loss) from operations |
|
18.1 |
|
|
|
|
19.1 |
|
|
|
(5.3 |
) |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
18.2 |
|
|
|
|
19.1 |
|
|
|
(4.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
20.7 |
|
|
% |
|
20.0 |
|
|
% |
0.7 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
91.8 |
|
|
|
$ |
136.8 |
|
|
|
(32.9 |
) |
|
% |
(32.9 |
) |
|
% |
Gross profit |
|
13.4 |
|
|
|
|
22.1 |
|
|
|
(39.3 |
) |
|
|
(39.3 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
13.3 |
|
|
|
|
14.7 |
|
|
|
(9.4 |
) |
|
|
(9.4 |
) |
|
|
Restructuring charges |
|
0.2 |
|
|
|
|
— |
|
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
13.5 |
|
|
|
|
14.7 |
|
|
|
(8.0 |
) |
|
|
(8.0 |
) |
|
|
Earnings (loss) from operations |
|
(0.1 |
) |
|
|
|
7.4 |
|
|
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
0.1 |
|
|
|
|
7.4 |
|
|
|
(99.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
14.6 |
|
|
% |
|
16.1 |
|
|
% |
(1.5 |
) |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
102.5 |
|
|
|
$ |
95.4 |
|
|
|
7.5 |
|
|
% |
6.6 |
|
|
% |
Gross profit |
|
32.7 |
|
|
|
|
31.6 |
|
|
|
3.8 |
|
|
|
2.3 |
|
|
|
SG&A expenses excluding restructuring charges |
|
28.9 |
|
|
|
|
28.4 |
|
|
|
1.9 |
|
|
|
0.4 |
|
|
|
Restructuring charges |
|
0.3 |
|
|
|
|
— |
|
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
29.2 |
|
|
|
|
28.4 |
|
|
|
2.8 |
|
|
|
1.3 |
|
|
|
Earnings (loss) from operations |
|
3.5 |
|
|
|
|
3.2 |
|
|
|
13.2 |
|
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
3.8 |
|
|
|
|
3.2 |
|
|
|
21.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
31.9 |
|
|
% |
|
33.1 |
|
|
% |
(1.2 |
) |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
278.0 |
|
|
|
$ |
288.9 |
|
|
|
(3.8 |
) |
|
% |
(6.1 |
) |
|
% |
Gross profit |
|
35.5 |
|
|
|
|
40.2 |
|
|
|
(11.7 |
) |
|
|
(13.8 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
33.2 |
|
|
|
|
33.6 |
|
|
|
(1.0 |
) |
|
|
(4.8 |
) |
|
|
Restructuring charges |
|
0.3 |
|
|
|
|
— |
|
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
33.5 |
|
|
|
|
33.6 |
|
|
|
(0.2 |
) |
|
|
(4.0 |
) |
|
|
Earnings (loss) from operations |
|
2.0 |
|
|
|
|
6.6 |
|
|
|
(70.0 |
) |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
2.3 |
|
|
|
|
6.6 |
|
|
|
(66.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
12.8 |
|
|
% |
|
13.9 |
|
|
% |
(1.1 |
) |
|
pts. |
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS BY SEGMENT |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December Year to Date |
|
|
2020(53 Wks) |
|
|
2019(52 Wks) |
|
% Change |
|
CC % Change |
|
Professional & Industrial |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
1,858.4 |
|
|
|
$ |
2,213.4 |
|
|
(16.0 |
) |
|
% |
(16.0 |
) |
|
% |
Gross profit |
|
330.2 |
|
|
|
|
388.4 |
|
|
(15.0 |
) |
|
|
(15.0 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
282.6 |
|
|
|
|
320.9 |
|
|
(11.9 |
) |
|
|
(11.9 |
) |
|
|
Restructuring charges |
|
6.0 |
|
|
|
|
5.1 |
|
|
16.8 |
|
|
|
16.9 |
|
|
|
Total SG&A expenses |
|
288.6 |
|
|
|
|
326.0 |
|
|
(11.5 |
) |
|
|
(11.4 |
) |
|
|
Earnings (loss) from operations |
|
41.6 |
|
|
|
|
62.4 |
|
|
(33.4 |
) |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
47.6 |
|
|
|
|
67.5 |
|
|
(29.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
17.8 |
|
|
% |
|
17.5 |
|
% |
0.3 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Science,
Engineering & Technology |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
1,019.1 |
|
|
|
$ |
1,131.8 |
|
|
(9.9 |
) |
|
% |
(9.9 |
) |
|
% |
Gross profit |
|
209.4 |
|
|
|
|
226.2 |
|
|
(7.5 |
) |
|
|
(7.4 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
133.8 |
|
|
|
|
146.3 |
|
|
(8.6 |
) |
|
|
(8.5 |
) |
|
|
Restructuring charges |
|
0.6 |
|
|
|
|
0.4 |
|
|
74.1 |
|
|
|
74.4 |
|
|
|
Total SG&A expenses |
|
134.4 |
|
|
|
|
146.7 |
|
|
(8.4 |
) |
|
|
(8.4 |
) |
|
|
Earnings (loss) from operations |
|
75.0 |
|
|
|
|
79.5 |
|
|
(5.8 |
) |
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
75.6 |
|
|
|
|
79.9 |
|
|
(5.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
20.5 |
|
|
% |
|
20.0 |
|
% |
0.5 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
286.9 |
|
|
|
$ |
450.7 |
|
|
(36.3 |
) |
|
% |
(36.3 |
) |
|
% |
Gross profit |
|
42.2 |
|
|
|
|
72.0 |
|
|
(41.3 |
) |
|
|
(41.3 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
50.2 |
|
|
|
|
56.2 |
|
|
(10.6 |
) |
|
|
(10.6 |
) |
|
|
Restructuring charges |
|
1.0 |
|
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
51.2 |
|
|
|
|
56.2 |
|
|
(8.8 |
) |
|
|
(8.8 |
) |
|
|
Earnings (loss) from operations |
|
(9.0 |
) |
|
|
|
15.8 |
|
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
(8.0 |
) |
|
|
|
15.8 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
14.7 |
|
|
% |
|
16.0 |
|
% |
(1.3 |
) |
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing & Consulting |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
363.5 |
|
|
|
$ |
377.7 |
|
|
(3.8 |
) |
|
% |
(3.8 |
) |
|
% |
Gross profit |
|
119.8 |
|
|
|
|
122.3 |
|
|
(2.0 |
) |
|
|
(2.2 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
108.0 |
|
|
|
|
119.3 |
|
|
(9.5 |
) |
|
|
(9.8 |
) |
|
|
Restructuring charges |
|
0.3 |
|
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
108.3 |
|
|
|
|
119.3 |
|
|
(9.2 |
) |
|
|
(9.6 |
) |
|
|
Earnings (loss) from operations |
|
11.5 |
|
|
|
|
3.0 |
|
|
291.3 |
|
|
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
11.8 |
|
|
|
|
3.0 |
|
|
301.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
33.0 |
|
|
% |
|
32.4 |
|
% |
0.6 |
|
|
pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
Revenue from services |
$ |
988.6 |
|
|
|
$ |
1,182.5 |
|
|
(16.4 |
) |
|
% |
(15.6 |
) |
|
% |
Gross profit |
|
126.0 |
|
|
|
|
159.5 |
|
|
(21.0 |
) |
|
|
(20.3 |
) |
|
|
SG&A expenses excluding restructuring charges |
|
133.5 |
|
|
|
|
140.8 |
|
|
(5.1 |
) |
|
|
(4.6 |
) |
|
|
Restructuring charges |
|
1.4 |
|
|
|
|
— |
|
|
NM |
|
NM |
|
Total SG&A expenses |
|
134.9 |
|
|
|
|
140.8 |
|
|
(4.2 |
) |
|
|
(3.6 |
) |
|
|
Earnings (loss) from operations |
|
(8.9 |
) |
|
|
|
18.7 |
|
|
NM |
|
|
|
Earnings (loss) from operations excluding restructuring
charges |
|
(7.5 |
) |
|
|
|
18.7 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit rate |
|
12.7 |
|
|
% |
|
13.5 |
|
% |
(0.8 |
) |
|
pts. |
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(UNAUDITED) |
|
(In millions of dollars) |
|
|
|
Jan. 3, 2021 |
|
Dec. 29, 2019 |
|
|
Current
Assets |
|
|
|
|
|
|
Cash and
equivalents |
$ |
223.0 |
|
|
$ |
25.8 |
|
|
|
|
Trade accounts
receivable, less allowances of |
|
|
|
|
|
|
$13.3 and $12.9,
respectively |
|
1,265.2 |
|
|
|
1,282.2 |
|
|
|
|
Prepaid expenses
and other current assets |
|
61.4 |
|
|
|
76.5 |
|
|
|
|
Properties held
for sale |
|
— |
|
|
|
21.2 |
|
|
|
|
Total current
assets |
|
1,549.6 |
|
|
|
1,405.7 |
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
Assets |
|
|
|
|
|
|
Property and equipment, net |
|
41.0 |
|
|
|
43.1 |
|
|
|
|
Operating lease right-of-use assets |
|
83.2 |
|
|
|
60.4 |
|
|
|
|
Deferred taxes |
|
282.0 |
|
|
|
229.1 |
|
|
|
|
Goodwill, net |
|
3.5 |
|
|
|
127.8 |
|
|
|
|
Investment in Persol Holdings |
|
164.2 |
|
|
|
173.2 |
|
|
|
|
Investment in equity affiliate |
|
118.5 |
|
|
|
117.2 |
|
|
|
|
Other assets |
|
319.9 |
|
|
|
324.1 |
|
|
|
|
Total noncurrent
assets |
|
1,012.3 |
|
|
|
1,074.9 |
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
$ |
2,561.9 |
|
|
$ |
2,480.6 |
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
Short-term
borrowings |
$ |
0.3 |
|
|
$ |
1.9 |
|
|
|
|
Accounts payable
and accrued liabilities |
|
536.8 |
|
|
|
503.6 |
|
|
|
|
Operating lease liabilities |
|
19.6 |
|
|
|
20.1 |
|
|
|
|
Accrued payroll
and related taxes |
|
293.0 |
|
|
|
267.6 |
|
|
|
|
Accrued workers'
compensation and other claims |
|
22.7 |
|
|
|
25.7 |
|
|
|
|
Income and other
taxes |
|
53.2 |
|
|
|
65.2 |
|
|
|
|
Total current
liabilities |
|
925.6 |
|
|
|
884.1 |
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
Liabilities |
|
|
|
|
|
|
Operating lease liabilities |
|
67.5 |
|
|
|
43.3 |
|
|
|
|
Accrued payroll and related taxes |
|
58.5 |
|
|
|
— |
|
|
|
|
Accrued workers'
compensation and other claims |
|
42.2 |
|
|
|
45.8 |
|
|
|
|
Accrued retirement
benefits |
|
205.8 |
|
|
|
187.4 |
|
|
|
|
Other long-term
liabilities |
|
59.3 |
|
|
|
55.5 |
|
|
|
|
Total noncurrent
liabilities |
|
433.3 |
|
|
|
332.0 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
Common stock |
|
40.1 |
|
|
|
40.1 |
|
|
|
|
Treasury
stock |
|
(17.1 |
) |
|
|
(20.9 |
) |
|
|
|
Paid-in
capital |
|
21.3 |
|
|
|
22.5 |
|
|
|
|
Earnings invested
in the business |
|
1,162.9 |
|
|
|
1,238.6 |
|
|
|
|
Accumulated other
comprehensive income (loss) |
|
(4.2 |
) |
|
|
(15.8 |
) |
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
1,203.0 |
|
|
|
1,264.5 |
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity |
$ |
2,561.9 |
|
|
$ |
2,480.6 |
|
|
|
|
|
|
|
|
|
|
|
Statistics: |
|
|
|
|
|
|
Working
Capital |
$ |
624.0 |
|
|
$ |
521.6 |
|
|
|
|
Current Ratio |
|
1.7 |
|
|
|
1.6 |
|
|
|
|
Debt-to-capital
% |
|
0.0 |
% |
0.1 |
|
|
% |
|
Global Days Sales
Outstanding |
|
64 |
|
|
|
58 |
|
|
|
|
Year-to-Date Free
Cash Flow |
$ |
170.5 |
|
|
$ |
82.2 |
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE 53 WEEKS ENDED JANUARY 3, 2021 AND 52 WEEKS ENDED
DECEMBER 29, 2019 |
(UNAUDITED) |
(In millions of dollars) |
|
|
2020 |
|
2019 |
Cash flows from
operating activities: |
|
|
|
|
Net earnings (loss) |
$ |
(72.0 |
) |
|
$ |
112.4 |
|
|
Adjustments to reconcile net earnings to net cash from operating
activities: |
|
|
|
|
Goodwill impairment charge |
|
147.7 |
|
|
|
— |
|
|
Deferred income taxes |
|
(57.1 |
) |
|
|
(18.3 |
) |
|
Depreciation and amortization |
|
24.2 |
|
|
|
31.6 |
|
|
Operating lease asset amortization |
|
21.1 |
|
|
|
22.3 |
|
|
Provision for credit losses and sales allowances |
|
12.8 |
|
|
|
4.1 |
|
|
Stock-based compensation |
|
3.9 |
|
|
|
5.6 |
|
|
(Gain) loss on investment in Persol Holdings |
|
16.6 |
|
|
|
(35.8 |
) |
|
(Gain) loss on sale of assets |
|
(32.1 |
) |
|
|
(12.3 |
) |
|
Asset impairment charge |
|
— |
|
|
|
15.8 |
|
|
Equity in net (earnings) loss of PersolKelly Pte. Ltd. |
|
(0.8 |
) |
|
|
3.6 |
|
|
Other, net |
|
1.4 |
|
|
|
(0.4 |
) |
|
Changes in operating assets and liabilities, net of
acquisitions |
|
120.3 |
|
|
|
(26.4 |
) |
|
Net cash from operating activities |
|
186.0 |
|
|
|
102.2 |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital expenditures |
|
(15.5 |
) |
|
|
(20.0 |
) |
|
Proceeds from sale of assets |
|
55.5 |
|
|
|
13.8 |
|
|
Acquisition of companies, net of cash received |
|
(39.2 |
) |
|
|
(86.4 |
) |
|
Proceeds from company-owned life insurance |
|
2.3 |
|
|
|
3.0 |
|
|
Proceeds from sale of Brazil, net of cash disposed |
|
1.2 |
|
|
|
— |
|
|
Proceeds (payments) related to loans to equity affiliate |
|
5.6 |
|
|
|
(4.4 |
) |
|
Investment in equity securities |
|
(0.2 |
) |
|
|
(1.0 |
) |
|
Other investing activities |
|
0.1 |
|
|
|
0.7 |
|
|
Net cash from (used in) investing activities |
|
9.8 |
|
|
|
(94.3 |
) |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net change in short-term borrowings |
|
(1.7 |
) |
|
|
(0.3 |
) |
|
Financing lease payments |
|
(2.0 |
) |
|
|
(0.7 |
) |
|
Dividend payments |
|
(3.0 |
) |
|
|
(11.9 |
) |
|
Payments of tax withholding for stock awards |
|
(1.2 |
) |
|
|
(2.5 |
) |
|
Other financing activities |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
Net cash used in financing activities |
|
(8.1 |
) |
|
|
(16.1 |
) |
|
|
|
|
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash |
|
9.4 |
|
|
|
(0.9 |
) |
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash |
|
197.1 |
|
|
|
(9.1 |
) |
|
Cash, cash equivalents
and restricted cash at beginning of year |
|
31.0 |
|
|
|
40.1 |
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of year |
$ |
228.1 |
|
|
$ |
31.0 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
REVENUE FROM SERVICES |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
% |
|
CC % |
|
|
|
(14 Wks) |
|
(13 Wks) |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
United States |
$ |
891.0 |
|
$ |
979.1 |
|
|
(9.0 |
) |
|
% |
(9.0 |
) |
|
% |
Mexico |
|
35.8 |
|
|
34.0 |
|
|
5.3 |
|
|
|
12.4 |
|
|
|
Canada |
|
33.8 |
|
|
35.3 |
|
|
(4.2 |
) |
|
|
(5.3 |
) |
|
|
Puerto Rico |
|
20.9 |
|
|
17.0 |
|
|
23.8 |
|
|
|
23.8 |
|
|
|
Brazil |
|
— |
|
|
9.0 |
|
|
(100.0 |
) |
|
|
(100.0 |
) |
|
|
Total Americas
Region |
|
981.5 |
|
|
1,074.4 |
|
|
(8.6 |
) |
|
|
(8.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
France |
|
57.0 |
|
|
60.0 |
|
|
(5.0 |
) |
|
|
(11.8 |
) |
|
|
Switzerland |
|
59.2 |
|
|
50.7 |
|
|
16.7 |
|
|
|
6.6 |
|
|
|
Portugal |
|
42.6 |
|
|
44.3 |
|
|
(3.9 |
) |
|
|
(10.7 |
) |
|
|
Russia |
|
29.9 |
|
|
33.5 |
|
|
(10.8 |
) |
|
|
6.7 |
|
|
|
United Kingdom |
|
17.2 |
|
|
21.5 |
|
|
(19.8 |
) |
|
|
(21.8 |
) |
|
|
Italy |
|
15.7 |
|
|
16.1 |
|
|
(2.1 |
) |
|
|
(9.0 |
) |
|
|
Germany |
|
8.0 |
|
|
9.1 |
|
|
(11.8 |
) |
|
|
(18.1 |
) |
|
|
Ireland |
|
5.9 |
|
|
5.0 |
|
|
19.2 |
|
|
|
10.7 |
|
|
|
Other |
|
15.9 |
|
|
16.0 |
|
|
(1.0 |
) |
|
|
(4.6 |
) |
|
|
Total Europe
Region |
|
251.4 |
|
|
256.2 |
|
|
(1.9 |
) |
|
|
(5.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region |
|
8.5 |
|
|
7.2 |
|
|
16.9 |
|
|
|
12.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly Services,
Inc. |
$ |
1,241.4 |
|
$ |
1,337.8 |
|
|
(7.2 |
) |
|
% |
(7.8 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
REVENUE FROM SERVICES |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
December Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
% |
|
CC % |
|
|
|
(53 Wks) |
|
(52 Wks) |
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
United States |
$ |
3,260.2 |
|
$ |
3,892.5 |
|
|
(16.2 |
) |
|
% |
(16.2 |
) |
|
% |
Canada |
|
122.5 |
|
|
136.1 |
|
|
(10.0 |
) |
|
|
(9.2 |
) |
|
|
Mexico |
|
114.4 |
|
|
123.6 |
|
|
(7.5 |
) |
|
|
2.1 |
|
|
|
Puerto Rico |
|
77.0 |
|
|
74.6 |
|
|
3.3 |
|
|
|
3.3 |
|
|
|
Brazil |
|
17.0 |
|
|
34.1 |
|
|
(50.1 |
) |
|
|
(39.5 |
) |
|
|
Total Americas
Region |
|
3,591.1 |
|
|
4,260.9 |
|
|
(15.7 |
) |
|
|
(15.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
France |
|
198.2 |
|
|
248.6 |
|
|
(20.3 |
) |
|
|
(21.9 |
) |
|
|
Switzerland |
|
200.4 |
|
|
200.7 |
|
|
(0.2 |
) |
|
|
(5.9 |
) |
|
|
Portugal |
|
141.7 |
|
|
179.8 |
|
|
(21.2 |
) |
|
|
(22.8 |
) |
|
|
Russia |
|
118.5 |
|
|
117.6 |
|
|
0.8 |
|
|
|
12.0 |
|
|
|
United Kingdom |
|
73.7 |
|
|
103.1 |
|
|
(28.5 |
) |
|
|
(28.6 |
) |
|
|
Italy |
|
58.2 |
|
|
75.9 |
|
|
(23.3 |
) |
|
|
(24.7 |
) |
|
|
Germany |
|
30.1 |
|
|
41.6 |
|
|
(27.7 |
) |
|
|
(28.9 |
) |
|
|
Ireland |
|
19.9 |
|
|
33.1 |
|
|
(39.9 |
) |
|
|
(41.2 |
) |
|
|
Other |
|
54.6 |
|
|
67.5 |
|
|
(19.2 |
) |
|
|
(17.8 |
) |
|
|
Total Europe
Region |
|
895.3 |
|
|
1,067.9 |
|
|
(16.2 |
) |
|
|
(16.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region |
|
29.6 |
|
|
26.8 |
|
|
10.1 |
|
|
|
11.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly Services,
Inc. |
$ |
4,516.0 |
|
$ |
5,355.6 |
|
|
(15.7 |
) |
|
% |
(15.5 |
) |
|
% |
|
|
|
|
|
|
|
|
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
FOURTH QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
2020 |
|
2019 |
SG&A
Expenses: |
As Reported |
|
Restructuring(5) |
|
Adjusted |
|
Adjusted |
Professional &
Industrial |
$ |
78.2 |
|
|
$ |
(1.7 |
) |
|
|
$ |
76.5 |
|
|
$ |
79.2 |
|
Science, Engineering &
Technology |
35.3 |
|
|
(0.1 |
) |
|
|
35.2 |
|
|
35.3 |
|
Education |
13.5 |
|
|
(0.2 |
) |
|
|
13.3 |
|
|
14.7 |
|
Outsourcing &
Consulting |
29.2 |
|
|
(0.3 |
) |
|
|
28.9 |
|
|
28.4 |
|
International |
33.5 |
|
|
(0.3 |
) |
|
|
33.2 |
|
|
33.6 |
|
Corporate |
24.9 |
|
|
(1.8 |
) |
|
|
23.1 |
|
|
25.1 |
|
Total Company |
$ |
214.6 |
|
|
$ |
(4.4 |
) |
|
|
$ |
210.2 |
|
|
$ |
216.3 |
|
|
2020 |
|
2019 |
Earnings (loss) from
Operations: |
As Reported |
|
Restructuring(5) |
|
Adjusted |
|
Adjusted |
Professional &
Industrial |
$ |
10.9 |
|
|
|
$ |
1.7 |
|
|
$ |
12.6 |
|
|
|
$ |
17.6 |
|
|
Science, Engineering &
Technology |
18.1 |
|
|
|
0.1 |
|
|
18.2 |
|
|
|
19.1 |
|
|
Education |
(0.1 |
) |
|
|
0.2 |
|
|
0.1 |
|
|
|
7.4 |
|
|
Outsourcing &
Consulting |
3.5 |
|
|
|
0.3 |
|
|
3.8 |
|
|
|
3.2 |
|
|
International |
2.0 |
|
|
|
0.3 |
|
|
2.3 |
|
|
|
6.6 |
|
|
Corporate |
(24.9 |
) |
|
|
1.8 |
|
|
(23.1 |
) |
|
|
(25.1 |
) |
|
Total Company |
$ |
9.5 |
|
|
|
$ |
4.4 |
|
|
$ |
13.9 |
|
|
|
$ |
28.8 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
FOURTH QUARTER |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
2019 |
SG&A
Expenses: |
As Reported |
|
Restructuring(5) |
|
Adjusted |
Professional &
Industrial |
$ |
79.1 |
|
|
$ |
0.1 |
|
|
$ |
79.2 |
|
Science, Engineering &
Technology |
35.3 |
|
|
— |
|
|
35.3 |
|
Education |
14.7 |
|
|
— |
|
|
14.7 |
|
Outsourcing &
Consulting |
28.4 |
|
|
— |
|
|
28.4 |
|
International |
33.6 |
|
|
— |
|
|
33.6 |
|
Corporate |
25.1 |
|
|
— |
|
|
25.1 |
|
Intersegment |
— |
|
|
— |
|
|
— |
|
Total Company |
$ |
216.2 |
|
|
$ |
0.1 |
|
|
$ |
216.3 |
|
|
2019 |
Earnings (loss) from
Operations: |
As Reported |
|
Restructuring(5) |
|
Asset Impairment Charge(6) |
|
Adjusted |
Professional &
Industrial |
$ |
17.7 |
|
|
|
$ |
(0.1 |
) |
|
|
$ |
— |
|
|
$ |
17.6 |
|
|
Science, Engineering &
Technology |
19.1 |
|
|
|
— |
|
|
|
— |
|
|
19.1 |
|
|
Education |
7.4 |
|
|
|
— |
|
|
|
— |
|
|
7.4 |
|
|
Outsourcing &
Consulting |
3.2 |
|
|
|
— |
|
|
|
— |
|
|
3.2 |
|
|
International |
6.6 |
|
|
|
— |
|
|
|
— |
|
|
6.6 |
|
|
Corporate |
(40.9 |
) |
|
|
— |
|
|
|
15.8 |
|
|
(25.1 |
) |
|
Total Company |
$ |
13.1 |
|
|
|
$ |
(0.1 |
) |
|
|
$ |
15.8 |
|
|
$ |
28.8 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
DECEMBER YEAR TO DATE |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
SG&A
Expenses: |
As Reported |
|
Goodwill impairment(1) |
|
Gain on saleof
assets(3) |
|
Customer Dispute(4) |
|
Restructuring(5) |
|
Adjusted |
|
Adjusted |
Professional &
Industrial |
$ |
288.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
(6.0 |
) |
|
|
$ |
282.6 |
|
|
$ |
320.9 |
|
Science, Engineering &
Technology |
134.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(0.6 |
) |
|
|
133.8 |
|
|
146.3 |
|
Education |
51.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(1.0 |
) |
|
|
50.2 |
|
|
56.2 |
|
Outsourcing &
Consulting |
108.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(0.3 |
) |
|
|
108.0 |
|
|
119.3 |
|
International |
134.9 |
|
|
— |
|
|
— |
|
|
(9.5 |
) |
|
|
(1.4 |
) |
|
|
124.0 |
|
|
140.8 |
|
Corporate |
88.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(3.5 |
) |
|
|
84.7 |
|
|
94.1 |
|
Total Company |
$ |
805.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(9.5 |
) |
|
|
$ |
(12.8 |
) |
|
|
$ |
783.3 |
|
|
$ |
877.6 |
|
|
2020 |
|
2019 |
Earnings (loss) from
Operations: |
As Reported |
|
Goodwill impairment(1) |
|
Gain on sale of
assets(3) |
|
Customer Dispute(4) |
|
Restructuring(5) |
|
Adjusted |
|
Adjusted |
Professional &
Industrial |
$ |
41.6 |
|
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
$ |
6.0 |
|
|
$ |
47.6 |
|
|
|
$ |
67.5 |
|
|
Science, Engineering &
Technology |
75.0 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.6 |
|
|
75.6 |
|
|
|
79.9 |
|
|
Education |
(9.0 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.0 |
|
|
(8.0 |
) |
|
|
15.8 |
|
|
Outsourcing &
Consulting |
11.5 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.3 |
|
|
11.8 |
|
|
|
3.0 |
|
|
International |
(8.9 |
) |
|
|
— |
|
|
— |
|
|
|
9.5 |
|
|
1.4 |
|
|
2.0 |
|
|
|
18.7 |
|
|
Corporate |
(203.8 |
) |
|
|
147.7 |
|
|
(32.1 |
) |
|
|
— |
|
|
3.5 |
|
|
(84.7 |
) |
|
|
(94.1 |
) |
|
Total Company |
$ |
(93.6 |
) |
|
|
$ |
147.7 |
|
|
$ |
(32.1 |
) |
|
|
$ |
9.5 |
|
|
$ |
12.8 |
|
|
$ |
44.3 |
|
|
|
$ |
90.8 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES |
DECEMBER YEAR TO DATE |
(UNAUDITED) |
(In millions of dollars) |
|
|
|
2019 |
SG&A
Expenses: |
As Reported |
|
Restructuring(5) |
|
Adjusted |
Professional &
Industrial |
$ |
326.0 |
|
|
$ |
(5.1 |
) |
|
|
$ |
320.9 |
|
Science, Engineering &
Technology |
146.7 |
|
|
(0.4 |
) |
|
|
146.3 |
|
Education |
56.2 |
|
|
— |
|
|
|
56.2 |
|
Outsourcing &
Consulting |
119.3 |
|
|
— |
|
|
|
119.3 |
|
International |
140.8 |
|
|
— |
|
|
|
140.8 |
|
Corporate |
94.1 |
|
|
— |
|
|
|
94.1 |
|
Total Company |
$ |
883.1 |
|
|
$ |
(5.5 |
) |
|
|
$ |
877.6 |
|
|
2019 |
Earnings (loss) from
Operations: |
As Reported |
|
Gain on sale of assets(3) |
|
Restructuring(5) |
|
Asset Impairment Charge(6) |
|
Adjusted |
Professional &
Industrial |
$ |
62.4 |
|
|
|
$ |
— |
|
|
|
$ |
5.1 |
|
|
$ |
— |
|
|
$ |
67.5 |
|
|
Science, Engineering &
Technology |
79.5 |
|
|
|
— |
|
|
|
0.4 |
|
|
— |
|
|
79.9 |
|
|
Education |
15.8 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
15.8 |
|
|
Outsourcing &
Consulting |
3.0 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
3.0 |
|
|
International |
18.7 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
18.7 |
|
|
Corporate |
(97.6 |
) |
|
|
(12.3 |
) |
|
|
— |
|
|
15.8 |
|
|
(94.1 |
) |
|
Total Company |
$ |
81.8 |
|
|
|
$ |
(12.3 |
) |
|
|
$ |
5.5 |
|
|
$ |
15.8 |
|
|
$ |
90.8 |
|
|
KELLY SERVICES, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES
(continued) |
(UNAUDITED) |
(In millions of dollars except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
December Year to Date |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Income tax expense
(benefit) |
|
$ |
2.5 |
|
|
|
$ |
(5.9 |
) |
|
|
$ |
(34.0 |
) |
|
|
$ |
0.4 |
|
|
Taxes on goodwill impairment
charge(1) |
|
— |
|
|
|
— |
|
|
|
23.0 |
|
|
|
— |
|
|
Taxes on investment in Persol
Holdings(2) |
|
(4.5 |
) |
|
|
(0.3 |
) |
|
|
5.1 |
|
|
|
(11.0 |
) |
|
Taxes on gain on sale of
assets(3) |
|
— |
|
|
|
— |
|
|
|
(8.1 |
) |
|
|
(3.3 |
) |
|
Taxes on customer
dispute(4) |
|
— |
|
|
|
— |
|
|
|
2.8 |
|
|
|
— |
|
|
Taxes on restructuring
charges(5) |
|
1.0 |
|
|
|
(0.1 |
) |
|
|
3.2 |
|
|
|
1.4 |
|
|
Taxes on asset impairment
charge(6) |
|
— |
|
|
|
4.0 |
|
|
|
— |
|
|
|
4.0 |
|
|
Adjusted income tax expense
(benefit) |
|
$ |
(1.0 |
) |
|
|
$ |
(2.3 |
) |
|
|
$ |
(8.0 |
) |
|
|
$ |
(8.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
December Year to Date |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net earnings (loss) |
|
$ |
23.4 |
|
|
|
$ |
17.0 |
|
|
|
$ |
(72.0 |
) |
|
|
$ |
112.4 |
|
|
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
|
— |
|
|
|
124.7 |
|
|
|
— |
|
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(10.3 |
) |
|
|
(0.4 |
) |
|
|
11.5 |
|
|
|
(24.8 |
) |
|
(Gain) loss on sale of assets,
net of taxes(3) |
|
— |
|
|
|
— |
|
|
|
(23.9 |
) |
|
|
(9.0 |
) |
|
Customer dispute, net of
taxes(4) |
|
— |
|
|
|
— |
|
|
|
6.7 |
|
|
|
— |
|
|
Restructuring charges, net of
taxes(5) |
|
3.4 |
|
|
|
— |
|
|
|
9.6 |
|
|
|
4.1 |
|
|
Asset impairment charge, net
of taxes(6) |
|
— |
|
|
|
11.8 |
|
|
|
— |
|
|
|
11.8 |
|
|
Adjusted net earnings |
|
$ |
16.5 |
|
|
|
$ |
28.4 |
|
|
|
$ |
56.6 |
|
|
|
$ |
94.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
December Year to Date |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Per Share |
|
Per Share |
Net earnings (loss) |
|
$ |
0.59 |
|
|
|
$ |
0.43 |
|
|
|
$ |
(1.83 |
) |
|
|
$ |
2.84 |
|
|
Goodwill impairment charge,
net of taxes(1) |
|
— |
|
|
|
— |
|
|
|
3.17 |
|
|
|
— |
|
|
(Gain) loss on investment in
Persol Holdings, net of taxes(2) |
|
(0.26 |
) |
|
|
(0.01 |
) |
|
|
0.29 |
|
|
|
(0.63 |
) |
|
Gain on sale of assets, net of
taxes(3) |
|
— |
|
|
|
— |
|
|
|
(0.61 |
) |
|
|
(0.23 |
) |
|
Customer dispute, net of
taxes(4) |
|
— |
|
|
|
— |
|
|
|
0.17 |
|
|
|
— |
|
|
Restructuring charges, net of
taxes(5) |
|
0.08 |
|
|
|
— |
|
|
|
0.24 |
|
|
|
0.10 |
|
|
Asset impairment charge, net
of taxes(6) |
|
— |
|
|
|
0.30 |
|
|
|
— |
|
|
|
0.30 |
|
|
Adjusted net earnings |
|
$ |
0.41 |
|
|
|
$ |
0.71 |
|
|
|
$ |
1.44 |
|
|
|
$ |
2.38 |
|
|
Note: Earnings per share amounts for each quarter are required
to be computed independently and may not equal the amounts computed
for the total year.
KELLY SERVICES, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP
MEASURES(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted
Accounting Principles) information excluding the 2020 goodwill
impairment charge, the 2020 and 2019 gains and losses on the
investment in Persol Holdings, the 2020 and 2019 gains on sale of
assets, the 2020 customer dispute, the 2020 and 2019 restructuring
charges and the 2019 asset impairment charge are useful to
understand the Company's fiscal 2020 financial performance and
increases comparability. Specifically, Management believes that
removing the impact of these items allows for a meaningful
comparison of current period operating performance with the
operating results of prior periods. Management also believes that
such measures are used by those analyzing performance of companies
in the staffing industry to compare current performance to prior
periods and to assess future performance.
These non-GAAP measures may have limitations as analytical tools
because they exclude items which can have a material impact on cash
flow and earnings per share. As a result, Management considers
these measures, along with reported results, when it reviews and
evaluates the Company's financial performance. Management believes
that these measures provide greater transparency to investors and
provide insight into how Management is evaluating the Company's
financial performance. Non-GAAP measures should not be considered a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP.
(1) The goodwill impairment charge is the
result of an interim impairment test the Company performed during
the first quarter of 2020, due to a triggering event caused by a
decline in the Company's common stock price.
(2) The gains and losses on the investment in
Persol Holdings represent the change in fair value of the
investment during the period presented and the related tax expense
and benefit.(3) Gain on sale of assets in 2020
primarily represents the excess of the proceeds over the cost of
the headquarters properties sold during the first quarter of 2020.
Gain on sale of assets in 2019 primarily represents the excess of
the proceeds over the cost of an unused parcel of land located near
the Company headquarters sold during the second quarter of 2019.
(4) Customer dispute 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 2020
represent severance costs and lease terminations in the first
quarter of 2020 in preparation for the new operating model adopted
in the third quarter of 2020 and additional severance costs in the
fourth quarter of 2020 to provide sustainable cost reductions as a
result of the continuing COVID-19 demand disruption. Restructuring
charges in 2019 represent severance costs primarily related to U.S.
branch-based staffing operations.(6) Asset
impairment charge in 2019 represents the write-off of previously
capitalized costs associated with a U.S. front and middle office
technology development project that we determined we would not
complete in order to enhance and expand a technology platform
already in existence.
Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Lug 2023 a Lug 2024