NobleCon18 Investor Presentation Kelly ril 2022 | Hollywood, FL Kelly. NON-GAAP MEASURES Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2020 goodwill impairment charge, the 2021 and 2020 gains and losses on the investment in Persol Holdings, the 2020 gain on sale of assets, the 2020 customer dispute, the 2021 and 2020 restructuring charges and the 2021 gain on insurance settlement are useful to understand the Company's fiscal 2021 financial perform ...

Revenue and Profitability - Revenue from services for 2021 increased by 8.7% to $4,909.7 million compared to $4,516.0 million in 2020, with a 7.8% increase on a constant currency basis [146]. - Gross profit for 2021 was $919.2 million, reflecting an 11.1% increase from $827.6 million in 2020 [145]. - The acquisition of Softworld contributed approximately 220 basis points to the revenue growth rate in 2021 [146]. - Permanent placement income surged by 89.7% compared to 2020, indicating strong demand for staffing services [146]. - The company reported net earnings of $156.1 million in 2021, a significant recovery from a net loss of $72.0 million in 2020 [145]. - Gross profit increased by 11.1% due to higher revenue volume and an improved gross profit rate, which rose by 40 basis points compared to 2020 [147]. - Consolidated total gross profit increased by 11.1% from $827.6 million in 2020 to $919.2 million in 2021 [184]. - Science, Engineering & Technology revenue increased by 13.5% in 2021, including contributions from the acquisition of Softworld, with organic growth at 3.9% [173]. - Education revenue surged by 45.2% in 2021, reflecting a return to in-school instruction after COVID-19 disruptions [174]. - International revenue increased by 8.0% in 2021, with a 4.9% increase on a constant currency basis, excluding the impact of the sale of staffing operations in Brazil [176]. Expenses and Cost Management - Total SG&A expenses increased by 8.1% year-over-year, with expenses related to the acquisition of Softworld contributing approximately 350 basis points to this increase [148]. - Total SG&A expenses for 2021 included $4.0 million in restructuring charges aimed at improving operational efficiencies [150]. - The gross profit rate for the Professional & Industrial segment decreased by 90 basis points to 16.9% in 2021, attributed to lower revenue volume and increased costs [185]. - SG&A expenses in Science, Engineering & Technology increased by 34.1% to $180.2 million, influenced by higher headcount and performance-based compensation [198]. - Education segment SG&A expenses rose by 21.1% to $62.1 million, primarily due to higher salary and incentives expenses [199]. - International SG&A expenses increased by 2.9% to $138.9 million, driven by higher performance-based compensation and salary-related expenses [201]. - Corporate expenses decreased slightly by $0.1 million to $88.1 million, reflecting lower non-restructuring severance costs [202]. Segment Performance - Professional & Industrial reported earnings of $31.4 million in 2021, a 24.4% decrease from 2020, primarily due to increased service costs and the impact of government wage subsidies received in 2020 [212]. - Science, Engineering & Technology reported earnings of $73.7 million, a 1.7% decrease from 2020, attributed to higher performance-based compensation and salary expenses, partially offset by earnings from the acquisition of Softworld [213]. - Education segment improved to earnings of $3.0 million in 2021 from a loss of $9.0 million in 2020, driven by increased demand for services as schools returned to in-person instruction [214]. - Outsourcing & Consulting saw earnings rise to $18.7 million, a 62.7% increase from 2020, due to higher revenue volumes [215]. - International segment reported earnings of $9.9 million, recovering from a loss of $8.9 million in 2020, mainly due to improved revenue in Europe and favorable comparisons to prior restructuring charges [215]. Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash totaled $119.5 million at year-end 2021, down from $228.1 million at year-end 2020 [226]. - Net cash from operating activities was $85.0 million in 2021, a decrease from $186.0 million in 2020, impacted by the repayment of payroll tax deferrals [227]. - Trade accounts receivable increased to $1.4 billion at year-end 2021 from $1.3 billion at year-end 2020, with global Days Sales Outstanding (DSO) improving to 60 days in 2021 from 64 days in 2020 [228]. - Total working capital position was $493.5 million at year-end 2021, a decrease of $130.5 million from year-end 2020 [229]. - The company expects working capital requirements to increase in the coming quarters, particularly due to a deferred payroll tax balance of $57.6 million due on January 3, 2023 [243]. Debt and Financial Position - At year-end 2021, the company had $200.0 million of available capacity on its revolving credit facility and $97.0 million on its securitization facility, with no short-term borrowings on the latter [241]. - The company has met all debt covenants related to its revolving credit and securitization facilities as of year-end 2021 [241]. - The company recorded a goodwill impairment charge of $147.7 million in the first quarter of 2020 due to a decline in market capitalization [264]. - Total goodwill at year-end 2021 amounted to $114.8 million, significantly up from $3.5 million at year-end 2020 [266]. Risk Factors - The company is exposed to foreign currency risk primarily related to its foreign subsidiaries, impacting the U.S. dollar value of reported earnings and investments [273]. - The company faces risks from competitive market pressures, including pricing and technology disruptions, which could impact future performance [272]. - Actual results may differ materially from forward-looking statements due to various risk factors, including economic conditions and regulatory changes [272].

FOURTH QUARTER AND FULL YEAR 2021 Kelly 14, 2022 Kelly. SAFE HARBOR STATEMENT Kelly. This release contains statements that are forward looking in nature and, accordingly, are subject to risks and ncertainties. The principal important risk factors that could cause our actual performance and future events and actions to differ materially from such forward–looking statements include, but are not limited to, changing market nd economic conditions, the impact of the novel coronavirus (COVID-19) outbreak, competi ...

Investor Presentation Proof that you can be 75 years old and still change the world every day Kelly Q3 2021 Kelly. Kelly. NON-GAAP MEASURES Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2021 and 2020 gains and losses on the investment in Persol Holdings, the 2020 loss on sale of assets, the 2020 customer dispute and the 2021 and 2020 restructuring accrual adjustments, are useful to understand the Company's fiscal 2021 financial performance and inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 3, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or other jurisdi ...

Kelly Services, Inc. (NASDAQ:KELYA) Q2 2021 Earnings Conference Call August 12, 2021 9:00 AM ET Company Participants Peter Quigley - President and CEO Olivier Thirot - CFO Conference Call Participants Kevin Steinke - Barrington Research Josh Vogel - Sidoti Joe Gomes - NOBLE Capital Operator Good morning, and welcome to Kelly Services’ Second Quarter Earnings Conference Call. All parties will be in a listen-only mode until the question-and-answer portion of the presentation. Today's call is being recorded at ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 4, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

Investor Presentation OTO 0.00 0 0 0 0 0 0 Q1 2021 NON-GAAP MEASURES Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2020 goodwill impairment charge, the 2021 and 2020 gains and losses on the investment in Persol Holdings, the 2020 gain on sale of assets and the 2020 restructuring charges, are useful to understand the Company's fiscal 2021 financial performance and increases comparability. Specifically, Management believes that removing the impact o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 4, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or other jurisdict ...

PART I [ITEM 1. BUSINESS.](index=3&type=section&id=ITEM%201.%20BUSINESS.) Kelly Services, Inc. is a global specialty talent solutions company founded in 1946, evolving from traditional office staffing to a portfolio of specialty services including scientific, engineering, IT, finance, and education staffing, as well as outcome-based services like recruitment outsourcing and payroll processing. The company operates across the Americas, Europe, and Asia-Pacific, serving a diverse customer base including 75 Fortune 100™ companies. In 2020, Kelly assigned nearly 370,000 temporary employees globally and realigned its business into five specialty segments to focus on high-demand, high-growth areas. - Kelly Services, Inc. was founded in **1946** and has evolved from traditional office staffing to a creative, insightful, and agile talent company delivering expertise in a portfolio of specialty services[13](index=13&type=chunk) - The company provides workforce solutions globally, serving **75** of the Fortune 100™ companies across the Americas, Europe, and Asia-Pacific regions[16](index=16&type=chunk) - In 2020, Kelly assigned nearly **370,000** temporary employees worldwide[17](index=17&type=chunk) - Kelly realigned its business into five specialty business units (Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, International) in 2020 to focus on robust demand and growth opportunities[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [History and Development of Business](index=3&type=page&id=History%20and%20Development%20of%20Business) The company, founded in 1946, pioneered the staffing industry and has since transitioned to a specialty talent company offering outcome-based services. - Founded in 1946 by William Russell Kelly, the company pioneered the staffing industry, initially empowering women in the workforce and later adapting to technological advancements by providing skills training[13](index=13&type=chunk) - Kelly has transitioned from a traditional office staffing business to a specialty talent company, increasingly offering outcome-based services with specialized talent and operational management[13](index=13&type=chunk) - The company is a leading provider in scientific, clinical, engineering, IT, finance, and K-12 educational staffing, also offering recruitment outsourcing, payroll processing, and talent advisory services[14](index=14&type=chunk) [Geographic Breadth of Services](index=3&type=page&id=Geographic%20Breadth%20of%20Services) Headquartered in the U.S., Kelly Services delivers workforce solutions globally, serving a broad customer base including Fortune 100™ companies. - Headquartered in the U.S., Kelly Services provides workforce solutions across the Americas, Europe, and Asia-Pacific regions[16](index=16&type=chunk) - The customer base includes **75** of the Fortune 100™ companies[16](index=16&type=chunk) - In 2020, approximately **370,000** temporary employees were assigned globally[17](index=17&type=chunk) [Description of Business Segments](index=3&type=page&id=Description%20of%20Business%20Segments) In 2020, Kelly realigned its business into five specialty units to focus on high-demand, high-growth areas. - In 2020, Kelly realigned its business into five reportable specialty business units[19](index=19&type=chunk) - Professional & Industrial: Staffing, outcome-based, and direct-hire services for office, professional, light industrial, and contact center in the U.S. and Canada - Science, Engineering & Technology: Staffing, outcome-based, and direct-hire services for science, clinical research, engineering, IT, and telecommunications, primarily in the U.S. and Canada - Education: Staffing, direct-hire, and executive search for K-12, early childhood, and higher education markets in the U.S - Outsourcing & Consulting: Managed Service Provider (MSP), Recruitment Process Outsourcing (RPO), Payroll Process Outsourcing (PPO), and Talent Advisory Services globally - International: Staffing and direct-hire services in **15** countries in Europe and Mexico[20](index=20&type=chunk)[21](index=21&type=chunk) - The new operating structure aims to focus on specialties with robust demand, promising growth opportunities, and areas where Kelly excels in attracting and placing talent[22](index=22&type=chunk) [Business Objectives](index=4&type=page&id=Business%20Objectives) Kelly aims to positively impact people, businesses, and communities by connecting qualified talent and promoting an equitable labor market. - Kelly aims to positively impact people, businesses, and communities by connecting customers with qualified talent and adopting innovative business practices and technologies[24](index=24&type=chunk) - The company helps businesses utilize contingent labor, consultants, and project-based work, recognizing the growing independent workforce[24](index=24&type=chunk) - In 2020, Kelly launched its Equity@Work platform to address systemic barriers to employment and promote an equitable and accessible U.S. labor market[25](index=25&type=chunk) [Business Operations](index=5&type=page&id=Business%20Operations) Kelly's operations are influenced by seasonality, working capital needs, customer concentration, and a highly competitive, fragmented industry. - Kelly's quarterly operating results are affected by seasonality, with demand generally lower in the first quarter, except for the Education segment which sees lowest revenue in Q3 due to summer breaks[29](index=29&type=chunk) - Working capital requirements are driven by employee payroll (paid weekly/monthly) and customer accounts receivable (**64 days** DSO as of Jan 3, 2021), increasing during growth periods and decreasing during slowdowns[30](index=30&type=chunk) - In 2020, Kelly's largest **100** customers accounted for approximately **53%** of total revenue, with the largest single customer contributing about **5%**[31](index=31&type=chunk) - The workforce solutions industry is highly competitive and fragmented, with major competitors including Randstad, Adecco Group, ManpowerGroup Inc., Recruit Holdings, and Allegis Group[33](index=33&type=chunk) - Key success factors are quality of service, price, and breadth of service, including the ability to manage staffing suppliers[34](index=34&type=chunk) - As of January 3, 2021, Kelly employed approximately **7,100** internal staff members globally and placed nearly **370,000** individuals with customers in 2020, retaining employer of record responsibility for temporary talent[43](index=43&type=chunk)[49](index=49&type=chunk) - The company is committed to competitive total rewards, an inclusive and diverse environment (majority female U.S. workforce), and community involvement through initiatives like Equity@Work[41](index=41&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [ITEM 1A. RISK FACTORS.](index=10&type=page&id=ITEM%201A.%20RISK%20FACTORS.) Kelly Services faces significant risks from macroeconomic conditions, particularly the impact of the COVID-19 pandemic which caused substantial revenue declines and necessitated cost management actions. The company operates in a highly competitive and regulated industry, facing threats from technological advancements like automation and potential liabilities from employment-related claims. Strategic and operational risks include the successful execution of its business strategy, dependence on third parties, and integration of acquisitions. Global operations expose Kelly to currency fluctuations and anti-corruption laws. The company's capital structure is influenced by its controlling stockholder and specific financial covenants in debt facilities. - Demand for staffing services is significantly affected by general economic conditions, with downturns disproportionately impacting staffing industry volumes[56](index=56&type=chunk) - The COVID-19 pandemic negatively impacted economies and customer demand, leading to a substantial decline in Kelly's revenues in 2020, especially in the Education segment due to school closures[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Kelly implemented cost management actions in response to revenue declines, including compensation reductions, furloughs, hiring freezes, and dividend suspension, with some actions continuing into the future[60](index=60&type=chunk) - The staffing services market is highly competitive with low barriers to entry, and Kelly competes with larger firms and faces threats from online staffing platforms and technological advancements like automation[63](index=63&type=chunk)[65](index=65&type=chunk) - The company is subject to extensive government regulation, which can restrict service offerings or increase costs through new benefit, licensing, or tax requirements[69](index=69&type=chunk) - Risks related to strategy and execution include the ability to develop new service offerings, potential loss of major customers, and additional risks from expanding into business process outsourcing and independent work services[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[80](index=80&type=chunk) - Global operations expose Kelly to risks such as currency exchange rate fluctuations, varying economic/political conditions, and compliance with anti-corruption laws[88](index=88&type=chunk)[89](index=89&type=chunk)[92](index=92&type=chunk) - Human capital risks include the ability to attract and retain qualified permanent and temporary personnel, and exposure to employment-related claims and lawsuits[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Cybersecurity and data privacy risks involve potential damage to data centers, failure to maintain privacy of information (e.g., GDPR, CCPA), and cyberattacks, which could lead to significant adverse consequences[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - The Terence E. Adderley Revocable Trust K is the controlling stockholder, holding approximately **91.6%** of Class B common stock, which is the only class with voting rights, allowing it to elect or remove all directors[101](index=101&type=chunk)[102](index=102&type=chunk) - The company's bank credit facilities contain financial covenants (e.g., interest coverage, debt-to-total capital) that, if not met, could restrict financial and operating flexibility[111](index=111&type=chunk) [ITEM 1B. UNRESOLVED STAFF