- Q2 revenue up 0.7% from a year ago; 2.7% in constant
currency
- Q2 operating earnings of $8.2
million and earnings per share of $0.06 down from a year ago primarily due to a
non-cash impairment charge related to our operations in
Russia
- Adjusted operating earnings of $22.3
million; up 63% from a year ago
- Completed the acquisition of Pediatric Therapeutic Services
in May to extend our leading position in K-12 education
TROY,
Mich., Aug. 11, 2022 /PRNewswire/ -- Kelly
(Nasdaq: KELYA, KELYB), a leading specialty talent solutions
provider, today announced results for the second quarter of
2022.
Peter Quigley, president and
chief executive officer, announced revenue for the second quarter
of 2022 totaled $1.3 billion, a 0.7%
increase, or 2.7% 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
recent acquisitions of RocketPower, a recruitment process
outsourcing firm, and Pediatric Therapeutic Services, a specialty
firm providing in-school therapy services.
Earnings from operations in the second quarter of 2022 totaled
$8.2 million, compared to
$13.7 million reported in the second
quarter of 2021. Earnings in the second quarter of 2022 include an
asset impairment charge related to our decision to transition our
business in Russia and a gain on
sale of assets related to the disposition of under-utilized real
property located in the United
States. Excluding those items, adjusted earnings from
operations were $22.3 million
compared to $13.7 million in the
second quarter of 2021. Earnings improved as a result of revenue
growth combined with structural improvement in gross profit rate
and expense leverage.
Earnings per share in the second quarter of 2022 were
$0.06 compared to earnings per share
of $0.60 in the second quarter of
2021. Included in the earnings per share in the second quarter of
2022 is a $0.48 per share asset
impairment charge, net of tax, related to our decision to
transition our business in Russia
and an $0.08 per share gain on sale
of assets, net of tax, related to the disposition of under-utilized
real property located in the United
States. Included in the second quarter of 2021 is earnings
per share of $0.11 gain, net of tax,
related to non-cash gains, net of tax, on Persol Holding common
shares. On an adjusted basis, earnings per share were $0.45 in the second quarter of 2022 compared to
$0.49 in the corresponding quarter of
2021. Adjusted earnings per share in the second quarter of 2022
declined as a result of higher 2022 tax expense compared to the
same period in 2021.
"We saw solid demand for Kelly's specialties in the second
quarter and, importantly, we are successfully translating revenue
into strong gross profit growth. We drove significant improvement
in our gross profit rate year over year, due to our continued
positive shift in business mix toward higher-margin products and
specialties boosted by our specialty acquisitions," said Quigley.
"We have significant capital available to enable growth, and we are
putting that capital to work to drive shareholder value. While
there is some economic uncertainty in the second half of the year,
we are confident that our focused and well-capitalized
specialization strategy will continue to deliver value in 2022 and
beyond."
Kelly also reported that on August
10, its board of directors declared a dividend of
$0.075 per share. The dividend
is payable on September 7, 2022 to
stockholders of record as of the close of business on August 24, 2022.
In conjunction with its second-quarter earnings release, Kelly
has published a financial presentation on the Investor
Relations page of its public website and will host a
conference call at 9 a.m. ET
on August 11 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 August 11, 2022, at (866) 207-1041 (toll-free)
and (402) 970-0847 (caller-paid). The access code is 8237932#. 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.
KLYA-FIN
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 JULY 3, 2022 AND JULY 4, 2021
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
1,267.3
|
$
|
1,258.1
|
$
|
9.2
|
|
0.7
|
%
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,004.9
|
|
1,027.1
|
|
(22.2)
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
262.4
|
|
231.0
|
|
31.4
|
|
13.6
|
|
15.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
240.1
|
|
217.3
|
|
22.8
|
|
10.6
|
|
12.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets
held for sale
|
|
18.5
|
|
—
|
|
18.5
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
(4.4)
|
|
—
|
|
(4.4)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
|
8.2
|
|
13.7
|
|
(5.5)
|
|
(40.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on investment in
Persol Holdings
|
|
—
|
|
6.3
|
|
(6.3)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
|
(1.1)
|
|
(0.3)
|
|
(0.8)
|
|
(350.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes and equity in net earnings (loss) of affiliate
|
|
7.1
|
|
19.7
|
|
(12.6)
|
|
(64.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
4.9
|
|
(2.6)
|
|
7.5
|
|
282.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings before
equity in net earnings (loss) of affiliate
|
|
2.2
|
|
22.3
|
|
(20.1)
|
|
(90.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(loss) of affiliate
|
|
—
|
|
1.7
|
|
(1.7)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
2.2
|
$
|
24.0
|
$
|
(21.8)
|
|
(90.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
$
|
0.06
|
$
|
0.60
|
$
|
(0.54)
|
|
(90.0)
|
|
|
|
Diluted earnings per
share
|
$
|
0.06
|
$
|
0.60
|
$
|
(0.54)
|
|
(90.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement
revenue (included in revenue from services)
|
$
|
24.8
|
$
|
18.6
|
$
|
6.2
|
|
33.2
|
%
|
36.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
20.7
|
%
|
18.4
|
%
|
2.3
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate
|
|
3.1
|
%
|
5.9
|
%
|
(2.8)
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
31.7
|
$
|
22.2
|
$
|
9.5
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
2.5
|
%
|
1.8
|
%
|
0.7
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
68.8
|
%
|
(13.5)
|
%
|
82.3
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
37.9
|
|
39.4
|
|
|
|
|
|
|
|
Diluted
|
|
38.2
|
|
39.5
|
|
|
|
|
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
FOR THE 26 WEEKS
ENDED JULY 3, 2022 AND JULY 4, 2021
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
2,563.7
|
$
|
2,464.0
|
$
|
99.7
|
|
4.0
|
%
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
2,042.7
|
|
2,019.7
|
|
23.0
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
521.0
|
|
444.3
|
|
76.7
|
|
17.3
|
|
19.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
476.2
|
|
420.0
|
|
56.2
|
|
13.4
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets
held for sale
|
|
18.5
|
|
—
|
|
18.5
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
(5.3)
|
|
—
|
|
(5.3)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
|
31.6
|
|
24.3
|
|
7.3
|
|
29.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
investment in Persol Holdings
|
|
(67.2)
|
|
36.3
|
|
(103.5)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on currency
translation from liquidation of subsidiary(1)
|
|
(20.4)
|
|
—
|
|
(20.4)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
1.7
|
|
(3.7)
|
|
5.4
|
|
147.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before taxes and equity in net earnings (loss) of
affiliate
|
|
(54.3)
|
|
56.9
|
|
(111.2)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(8.1)
|
|
7.9
|
|
(16.0)
|
|
(204.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
before equity in net earnings (loss) of affiliate
|
|
(46.2)
|
|
49.0
|
|
(95.2)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(loss) of affiliate
|
|
0.8
|
|
0.6
|
|
0.2
|
|
35.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
|
(45.4)
|
$
|
49.6
|
$
|
(95.0)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
$
|
(1.19)
|
$
|
1.25
|
$
|
(2.44)
|
|
NM
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(1.19)
|
$
|
1.25
|
$
|
(2.44)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent placement
revenue (included in revenue from services)
|
$
|
51.4
|
$
|
34.6
|
$
|
16.8
|
|
48.5
|
%
|
51.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
20.3
|
%
|
18.0
|
%
|
2.3
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion
rate
|
|
6.1
|
%
|
5.5
|
%
|
0.6
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
62.4
|
$
|
39.1
|
$
|
23.3
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
2.4
|
%
|
1.6
|
%
|
0.8
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
15.0
|
%
|
13.8
|
%
|
1.2
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding (millions):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
38.3
|
|
39.4
|
|
|
|
|
|
|
|
Diluted
|
|
38.3
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
|
2021
|
|
Change
|
|
Change
|
|
Professional &
Industrial
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
415.8
|
|
$
|
466.5
|
|
(10.9)
|
%
|
(10.6)
|
%
|
Gross
profit
|
|
77.8
|
|
|
75.2
|
|
3.6
|
|
3.9
|
|
Total SG&A
expenses
|
|
67.4
|
|
|
69.0
|
|
(2.2)
|
|
(2.0)
|
|
Earnings (loss) from
operations
|
|
10.4
|
|
|
6.2
|
|
68.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
18.7
|
%
|
|
16.1
|
%
|
2.6
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
324.3
|
|
$
|
298.2
|
|
8.7
|
%
|
9.0
|
%
|
Gross
profit
|
|
75.2
|
|
|
66.5
|
|
13.1
|
|
13.3
|
|
Total SG&A
expenses
|
|
54.8
|
|
|
46.9
|
|
16.9
|
|
17.1
|
|
Earnings (loss) from
operations
|
|
20.4
|
|
|
19.6
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
23.2
|
%
|
|
22.3
|
%
|
0.9
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
155.5
|
|
$
|
105.9
|
|
46.8
|
%
|
46.8
|
%
|
Gross
profit
|
|
26.0
|
|
|
16.8
|
|
55.0
|
|
55.0
|
|
Total SG&A
expenses
|
|
20.4
|
|
|
15.3
|
|
33.4
|
|
33.4
|
|
Earnings (loss) from
operations
|
|
5.6
|
|
|
1.5
|
|
278.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
16.7
|
%
|
|
15.8
|
%
|
0.9
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
124.4
|
|
$
|
107.3
|
|
16.0
|
%
|
17.3
|
%
|
Gross
profit
|
|
46.2
|
|
|
34.8
|
|
32.8
|
|
35.3
|
|
Total SG&A
expenses
|
|
39.8
|
|
|
30.1
|
|
32.5
|
|
34.5
|
|
Earnings (loss) from
operations
|
|
6.4
|
|
|
4.7
|
|
34.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
37.2
|
%
|
|
32.5
|
%
|
4.7
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
247.6
|
|
$
|
280.4
|
|
(11.7)
|
%
|
(4.3)
|
%
|
Gross
profit
|
|
37.2
|
|
|
37.7
|
|
(1.5)
|
|
7.3
|
|
Total SG&A
expenses
|
|
34.6
|
|
|
34.6
|
|
(0.1)
|
|
8.2
|
|
Earnings (loss) from
operations
|
|
2.6
|
|
|
3.1
|
|
(16.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
15.0
|
%
|
|
13.4
|
%
|
1.6
|
pts.
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS BY SEGMENT
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
|
2021
|
|
Change
|
|
Change
|
|
Professional &
Industrial
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
860.1
|
|
$
|
934.1
|
|
(7.9)
|
%
|
(7.8)
|
%
|
Gross
profit
|
|
160.9
|
|
|
151.1
|
|
6.5
|
|
6.7
|
|
Total SG&A
expenses
|
|
138.8
|
|
|
138.4
|
|
0.3
|
|
0.4
|
|
Earnings (loss) from
operations
|
|
22.1
|
|
|
12.7
|
|
74.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
18.7
|
%
|
|
16.2
|
%
|
2.5
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science, Engineering
& Technology
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
641.4
|
|
$
|
552.9
|
|
16.0
|
%
|
16.2
|
%
|
Gross
profit
|
|
149.0
|
|
|
119.7
|
|
24.5
|
|
24.7
|
|
Total SG&A
expenses
|
|
108.0
|
|
|
82.6
|
|
30.8
|
|
30.9
|
|
Earnings (loss) from
operations
|
|
41.0
|
|
|
37.1
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
23.2
|
%
|
|
21.6
|
%
|
1.6
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
328.9
|
|
$
|
217.5
|
|
51.2
|
%
|
51.2
|
%
|
Gross
profit
|
|
52.6
|
|
|
34.0
|
|
54.9
|
|
54.9
|
|
Total SG&A
expenses
|
|
39.0
|
|
|
29.5
|
|
32.4
|
|
32.4
|
|
Earnings (loss) from
operations
|
|
13.6
|
|
|
4.5
|
|
203.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
16.0
|
%
|
|
15.6
|
%
|
0.4
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Consulting
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
233.5
|
|
$
|
206.6
|
|
13.0
|
%
|
14.1
|
%
|
Gross
profit
|
|
83.5
|
|
|
66.1
|
|
26.3
|
|
28.2
|
|
Total SG&A
expenses
|
|
74.1
|
|
|
58.5
|
|
26.7
|
|
28.2
|
|
Earnings (loss) from
operations
|
|
9.4
|
|
|
7.6
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
35.8
|
%
|
|
32.0
|
%
|
3.8
|
pts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
$
|
500.4
|
|
$
|
553.3
|
|
(9.5)
|
%
|
(2.7)
|
%
|
Gross
profit
|
|
75.0
|
|
|
73.4
|
|
2.1
|
|
10.0
|
|
Total SG&A
expenses
|
|
67.8
|
|
|
67.7
|
|
0.2
|
|
7.4
|
|
Earnings (loss) from
operations
|
|
7.2
|
|
|
5.7
|
|
25.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
rate
|
|
15.0
|
%
|
|
13.3
|
%
|
1.7
|
pts.
|
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
July 3,
2022
|
|
January 2,
2022
|
|
July 4,
2021
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
133.9
|
$
|
112.7
|
$
|
64.4
|
|
Trade accounts
receivable, less allowances of
|
|
|
|
|
|
|
|
$12.0, $12.6, and $12.5, respectively
|
|
1,497.9
|
|
1,423.2
|
|
1,362.5
|
|
Prepaid expenses
and other current assets
|
|
80.6
|
|
52.8
|
|
82.4
|
|
Assets held for
sale
|
|
24.6
|
|
—
|
|
—
|
|
Total current
assets
|
|
1,737.0
|
|
1,588.7
|
|
1,509.3
|
|
|
|
|
|
|
|
|
|
Noncurrent
Assets
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
25.4
|
|
35.3
|
|
37.7
|
|
Operating lease
right-of-use assets
|
|
70.1
|
|
75.8
|
|
83.2
|
|
Deferred
taxes
|
|
298.3
|
|
302.8
|
|
302.9
|
|
Goodwill,
net
|
|
192.1
|
|
114.8
|
|
114.8
|
|
Investment in
Persol Holdings
|
|
—
|
|
264.3
|
|
187.7
|
|
Investment in
equity affiliate
|
|
—
|
|
123.4
|
|
120.0
|
|
Other
assets
|
|
412.3
|
|
389.1
|
|
391.3
|
|
Total noncurrent
assets
|
|
998.2
|
|
1,305.5
|
|
1,237.6
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
2,735.2
|
$
|
2,894.2
|
$
|
2,746.9
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
—
|
$
|
—
|
$
|
0.1
|
|
Accounts payable
and accrued liabilities
|
|
734.7
|
|
687.2
|
|
612.6
|
|
Operating lease
liabilities
|
|
15.3
|
|
17.5
|
|
19.6
|
|
Accrued payroll
and related taxes
|
|
322.4
|
|
318.4
|
|
337.0
|
|
Accrued workers'
compensation and other claims
|
|
24.4
|
|
20.8
|
|
22.0
|
|
Income and other
taxes
|
|
50.5
|
|
51.3
|
|
62.6
|
|
Liabilities held for
sale
|
|
13.7
|
|
—
|
|
—
|
|
Total current
liabilities
|
|
1,161.0
|
|
1,095.2
|
|
1,053.9
|
|
|
|
|
|
|
|
|
|
Noncurrent
Liabilities
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
57.7
|
|
61.4
|
|
67.1
|
|
Accrued payroll and
related taxes
|
|
—
|
|
57.6
|
|
58.5
|
|
Accrued workers'
compensation and other claims
|
|
43.4
|
|
37.0
|
|
40.8
|
|
Accrued
retirement benefits
|
|
180.2
|
|
220.0
|
|
214.6
|
|
Other long-term
liabilities
|
|
16.0
|
|
86.8
|
|
68.2
|
|
Total noncurrent
liabilities
|
|
297.3
|
|
462.8
|
|
449.2
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common
stock
|
|
38.5
|
|
40.1
|
|
40.1
|
|
Treasury
stock
|
|
(12.5)
|
|
(15.1)
|
|
(15.3)
|
|
Paid-in
capital
|
|
24.9
|
|
23.9
|
|
22.3
|
|
Earnings
invested in the business
|
|
1,239.2
|
|
1,315.0
|
|
1,212.5
|
|
Accumulated
other comprehensive income (loss)
|
|
(13.2)
|
|
(27.7)
|
|
(15.8)
|
|
Total stockholders'
equity
|
|
1,276.9
|
|
1,336.2
|
|
1,243.8
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
2,735.2
|
$
|
2,894.2
|
$
|
2,746.9
|
|
|
|
|
|
|
|
|
|
STATISTICS:
|
|
|
|
|
|
|
|
Working
Capital
|
$
|
576.0
|
$
|
493.5
|
$
|
455.4
|
|
Current
Ratio
|
|
1.5
|
|
1.5
|
|
1.4
|
|
Debt-to-capital
%
|
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
Global Days Sales
Outstanding
|
|
63
|
|
60
|
|
60
|
|
Year-to-Date Free
Cash Flow
|
$
|
(110.8)
|
$
|
73.8
|
$
|
42.7
|
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR THE 26 WEEKS
ENDED JULY 3, 2022 AND JULY 4, 2021
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
|
Net earnings
(loss)
|
$
|
(45.4)
|
$
|
49.6
|
Adjustments to
reconcile net earnings (loss) to net cash from operating
activities:
|
|
|
|
|
Impairment of assets
held for sale
|
|
18.5
|
|
—
|
Depreciation and
amortization
|
|
16.1
|
|
14.1
|
Operating lease asset
amortization
|
|
9.8
|
|
10.7
|
Provision for credit
losses and sales allowances
|
|
1.3
|
|
—
|
Stock-based
compensation
|
|
3.8
|
|
2.8
|
(Gain) loss on
investment in Persol Holdings
|
|
67.2
|
|
(36.3)
|
Loss on currency
translation from liquidation of subsidiary
|
|
20.4
|
|
—
|
Gain on foreign
currency remeasurement
|
|
(5.5)
|
|
—
|
Gain on sale of
assets
|
|
(5.3)
|
|
—
|
Equity in net
(earnings) loss of PersolKelly Pte. Ltd.
|
|
(0.8)
|
|
(0.6)
|
Other, net
|
|
2.9
|
|
2.2
|
Changes in operating
assets and liabilities, net of acquisitions
|
|
(190.3)
|
|
5.1
|
|
|
|
|
|
Net cash (used in)
from operating activities
|
|
(107.3)
|
|
47.6
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(3.5)
|
|
(4.9)
|
Proceeds from sale of
assets
|
|
4.5
|
|
—
|
Acquisition of
companies, net of cash received
|
|
(143.1)
|
|
(219.0)
|
Proceeds from
company-owned life insurance
|
|
1.5
|
|
10.4
|
Proceeds from sale of
Persol Holdings investment
|
|
196.9
|
|
—
|
Proceeds from sale of
equity method investment
|
|
119.5
|
|
—
|
Proceeds related to
loans with equity affiliate
|
|
—
|
|
5.8
|
Proceeds from equity
securities
|
|
—
|
|
5.0
|
Other investing
activities
|
|
(0.2)
|
|
1.0
|
|
|
|
|
|
Net cash from (used
in) investing activities
|
|
175.6
|
|
(201.7)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Net change in
short-term borrowings
|
|
—
|
|
(0.1)
|
Financing lease
payments
|
|
(0.4)
|
|
(0.3)
|
Dividend
payments
|
|
(4.8)
|
|
—
|
Payments of tax
withholding for stock awards
|
|
(0.8)
|
|
(0.6)
|
Buyback of common
shares
|
|
(27.2)
|
|
—
|
Contingent
consideration payments
|
|
(0.7)
|
|
—
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(33.9)
|
|
(1.0)
|
|
|
|
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
0.1
|
|
(2.3)
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
34.5
|
|
(157.4)
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
|
119.5
|
|
228.1
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
154.0
|
$
|
70.7
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
REVENUE FROM
SERVICES BY GEOGRAPHY
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
928.9
|
$
|
894.6
|
|
3.8
|
%
|
3.8
|
%
|
Canada
|
|
40.3
|
|
39.5
|
|
1.8
|
|
6.0
|
|
Puerto Rico
|
|
28.9
|
|
26.9
|
|
7.7
|
|
7.7
|
|
Mexico
|
|
11.2
|
|
33.1
|
|
(66.3)
|
|
(66.2)
|
|
Total Americas
Region
|
|
1,009.3
|
|
994.1
|
|
1.5
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
Switzerland
|
|
55.3
|
|
54.0
|
|
2.4
|
|
8.7
|
|
France
|
|
50.4
|
|
57.5
|
|
(12.4)
|
|
(0.7)
|
|
Portugal
|
|
42.0
|
|
40.6
|
|
3.5
|
|
17.3
|
|
Russia
|
|
28.7
|
|
33.7
|
|
(14.6)
|
|
(24.6)
|
|
Italy
|
|
18.4
|
|
19.4
|
|
(5.4)
|
|
7.4
|
|
United
Kingdom
|
|
16.0
|
|
17.7
|
|
(9.6)
|
|
1.0
|
|
Other
|
|
35.7
|
|
31.8
|
|
12.1
|
|
28.3
|
|
Total Europe
Region
|
|
246.5
|
|
254.7
|
|
(3.2)
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region
|
|
11.5
|
|
9.3
|
|
24.2
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly
Services, Inc.
|
$
|
1,267.3
|
$
|
1,258.1
|
|
0.7
|
%
|
2.7
|
%
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
REVENUE FROM
SERVICES BY GEOGRAPHY
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
June Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
CC %
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
1,885.5
|
$
|
1,753.1
|
|
7.6
|
%
|
7.6
|
%
|
Canada
|
|
79.4
|
|
73.6
|
|
7.8
|
|
10.1
|
|
Puerto Rico
|
|
56.5
|
|
51.1
|
|
10.7
|
|
10.7
|
|
Mexico
|
|
21.5
|
|
67.7
|
|
(68.3)
|
|
(68.1)
|
|
Total Americas
Region
|
|
2,042.9
|
|
1,945.5
|
|
5.0
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
Switzerland
|
|
110.3
|
|
106.7
|
|
3.4
|
|
7.5
|
|
France
|
|
105.0
|
|
111.8
|
|
(6.1)
|
|
3.6
|
|
Portugal
|
|
83.9
|
|
84.3
|
|
(0.5)
|
|
9.9
|
|
Russia
|
|
58.4
|
|
66.3
|
|
(11.9)
|
|
(9.4)
|
|
Italy
|
|
37.9
|
|
37.5
|
|
0.8
|
|
11.3
|
|
United
Kingdom
|
|
31.0
|
|
34.7
|
|
(10.7)
|
|
(4.0)
|
|
Other
|
|
72.0
|
|
59.6
|
|
20.8
|
|
33.9
|
|
Total Europe
Region
|
|
498.5
|
|
500.9
|
|
(0.5)
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
Total Asia-Pacific
Region
|
|
22.3
|
|
17.6
|
|
26.7
|
|
33.7
|
|
|
|
|
|
|
|
|
|
|
|
Total Kelly
Services, Inc.
|
$
|
2,563.7
|
$
|
2,464.0
|
|
4.0
|
%
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
KELLY
SERVICES, INC. AND SUBSIDIARIES
|
RECONCILIATION
OF NON-GAAP MEASURES
|
SECOND
QUARTER
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
2022
|
|
2021
|
Earnings (loss) from
Operations:
|
As
Reported
|
|
Gain on sale of
assets(3)
|
|
Impairment of
assets held
for
sale(4)
|
|
Adjusted
|
|
As
Reported
|
Professional &
Industrial
|
$
10.4
|
|
$
—
|
|
$
—
|
|
$
10.4
|
|
$
6.2
|
Science, Engineering
& Technology
|
20.4
|
|
—
|
|
—
|
|
20.4
|
|
19.6
|
Education
|
5.6
|
|
—
|
|
—
|
|
5.6
|
|
1.5
|
Outsourcing &
Consulting
|
6.4
|
|
—
|
|
—
|
|
6.4
|
|
4.7
|
International
|
2.6
|
|
—
|
|
—
|
|
2.6
|
|
3.1
|
Corporate
|
(23.1)
|
|
—
|
|
—
|
|
(23.1)
|
|
(21.4)
|
Impairment of assets
held for sale
|
(18.5)
|
|
—
|
|
18.5
|
|
—
|
|
—
|
Gain on sale of
assets
|
4.4
|
|
(4.4)
|
|
—
|
|
—
|
|
—
|
Total
Company
|
$
8.2
|
|
$
(4.4)
|
|
$
18.5
|
|
$
22.3
|
|
$
13.7
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP MEASURES
|
JUNE YEAR TO
DATE
|
(UNAUDITED)
|
(In millions of
dollars)
|
|
2022
|
|
2021
|
Earnings (loss) from
Operations:
|
As
Reported
|
|
Gain on
sale
of
assets(3)
|
|
Impairment of
assets held
for
sale(4)
|
|
Adjusted
|
|
As
Reported
|
Professional &
Industrial
|
$
22.1
|
|
$
—
|
|
$
—
|
|
$
22.1
|
|
$
12.7
|
Science, Engineering
& Technology
|
41.0
|
|
—
|
|
—
|
|
41.0
|
|
37.1
|
Education
|
13.6
|
|
—
|
|
—
|
|
13.6
|
|
4.5
|
Outsourcing &
Consulting
|
9.4
|
|
—
|
|
—
|
|
9.4
|
|
7.6
|
International
|
7.2
|
|
—
|
|
—
|
|
7.2
|
|
5.7
|
Corporate
|
(48.5)
|
|
—
|
|
—
|
|
(48.5)
|
|
(43.3)
|
Impairment of assets
held for sale
|
(18.5)
|
|
—
|
|
18.5
|
|
—
|
|
—
|
Gain on sale of
assets
|
5.3
|
|
(5.3)
|
|
—
|
|
—
|
|
—
|
Total
Company
|
$
31.6
|
|
$
(5.3)
|
|
$
18.5
|
|
$
44.8
|
|
$
24.3
|
KELLY SERVICES, INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP MEASURES
|
(UNAUDITED)
|
(In millions of dollars
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
June Year to
Date
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Income tax expense
(benefit)
|
|
$
4.9
|
|
$
(2.6)
|
|
$
(8.1)
|
|
$
7.9
|
Taxes on investment in
Persol Holdings(1)
|
|
—
|
|
(1.9)
|
|
18.4
|
|
(11.1)
|
Taxes on foreign
currency matters(2)
|
|
—
|
|
—
|
|
(1.5)
|
|
—
|
Taxes on gain on sale
of assets(3)
|
|
(1.1)
|
|
—
|
|
(1.3)
|
|
—
|
Taxes on impairment of
assets held for sale(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted income tax
expense (benefit)
|
|
$
3.8
|
|
$
(4.5)
|
|
$
7.5
|
|
$
(3.2)
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
June Year to
Date
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
(loss)
|
|
$
2.2
|
|
$
24.0
|
|
$
(45.4)
|
|
$
49.6
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(1)
|
|
—
|
|
(4.4)
|
|
48.8
|
|
(25.2)
|
Loss on foreign
currency matters, net of taxes(2)
|
|
—
|
|
—
|
|
16.4
|
|
—
|
Gain on sale of assets,
net of taxes(3)
|
|
(3.3)
|
|
—
|
|
(4.0)
|
|
—
|
Impairment of assets
held for sale, net of taxes(4)
|
|
18.5
|
|
—
|
|
18.5
|
|
—
|
Adjusted net
earnings
|
|
$
17.4
|
|
$
19.6
|
|
$
34.3
|
|
$
24.4
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
June Year to
Date
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
Per
Share
|
|
Per
Share
|
Net earnings
(loss)
|
|
$
0.06
|
|
$
0.60
|
|
$
(1.19)
|
|
$
1.25
|
(Gain) loss on
investment in Persol Holdings, net of
taxes(1)
|
|
—
|
|
(0.11)
|
|
1.27
|
|
(0.63)
|
Loss on foreign
currency matters, net of taxes(2)
|
|
—
|
|
—
|
|
0.43
|
|
—
|
Gain on sale of assets,
net of taxes(3)
|
|
(0.08)
|
|
—
|
|
(0.10)
|
|
—
|
Impairment of assets
held for sale, net of taxes(4)
|
|
0.48
|
|
—
|
|
0.48
|
|
—
|
Adjusted net
earnings
|
|
$
0.45
|
|
$
0.49
|
|
$
0.90
|
|
$
0.61
|
|
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)
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
June Year to
Date
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
(loss)
|
$
2.2
|
|
$
24.0
|
|
$
(45.4)
|
|
$
49.6
|
Other (income) expense,
net(2)
|
1.1
|
|
0.3
|
|
(1.7)
|
|
3.7
|
Income tax expense
(benefit)
|
4.9
|
|
(2.6)
|
|
(8.1)
|
|
7.9
|
Depreciation and
amortization
|
9.4
|
|
8.5
|
|
17.6
|
|
14.8
|
EBITDA
|
17.6
|
|
30.2
|
|
(37.6)
|
|
76.0
|
Equity in net
(earnings) loss of affiliate
|
—
|
|
(1.7)
|
|
(0.8)
|
|
(0.6)
|
(Gain) loss on
investment in Persol Holdings(1)
|
—
|
|
(6.3)
|
|
67.2
|
|
(36.3)
|
Loss on foreign
currency matters(2)
|
—
|
|
—
|
|
20.4
|
|
—
|
Gain on sale of
assets(3)
|
(4.4)
|
|
—
|
|
(5.3)
|
|
—
|
Held for sale
impairment charge(4)
|
18.5
|
|
—
|
|
18.5
|
|
—
|
Adjusted
EBITDA
|
$
31.7
|
|
$
22.2
|
|
$
62.4
|
|
$
39.1
|
Adjusted EBITDA
margin
|
2.5 %
|
|
1.8 %
|
|
2.4 %
|
|
1.6 %
|
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, the
2022 losses on foreign currency matters, the 2022 gains on sale of
assets and the impairment of assets held for sale, 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.
(3) Gain on sale of assets in 2022 is
related to the sale of under-utilized real property in the second
quarter of 2022 and other real property sold in the first quarter
of 2022.
(4) Impairment of assets held for sale
represents the write-down of the net assets of the Russian
operations that are classified as held for sale as of the second
quarter of 2022.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/kelly-reports-second-quarter-2022-earnings-301603707.html
SOURCE Kelly Services, Inc.