TROY, Mich., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider, today announced the completion of its previously announced CFO transition. Troy Anderson, who joined Kelly in October 2024, will succeed Olivier Thirot as the Company’s chief financial officer, effective December 2, 2024. Thirot will retire as an officer of Kelly, while continuing to serve the Company as a strategic advisor. “I’m grateful to serve as Kelly’s chief financial offi ...

TROY, Mich., Nov. 20, 2024 (GLOBE NEWSWIRE) -- KellyOCG, the outsourcing and consulting group of Kelly (Nasdaq: KELYA, KELYB), has claimed the No. 1 spot on HRO Today’s 2024 Total Workforce Solutions Baker’s Dozen Customer Satisfaction Ratings. The list ranks the top suppliers of managed services provider (MSP) and recruitment process outsourcing (RPO) solutions based solely on customer satisfaction surveys. “We’re thrilled to be recognized by our clients as the leader in total talent management,” KellyOCG ...

TROY, Mich., Nov. 15, 2024 (GLOBE NEWSWIRE) -- Kelly has been named Corporation of the Year by the National Minority Supplier Development Council (NMSDC). The specialty talent solutions provider was recognized for its exemplary leadership in supplier and business diversity among companies with up to $10 billion in annual revenue. Kelly was recognized alongside Duke Energy, The Walt Disney Company, Centene Corporation, and Stellantis, who were named Corporations of the Year in the $10 billion+ categories. NM ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 totaled $1.04 billion, down 7.1% from $1.12 billion in Q3 2023, primarily due to the sale of the European staffing business, partially offset by the acquisition of Motion Recruitment Partners (MRP) [20] - On an organic basis, year-over-year revenue was essentially flat, down 0.2%, slightly lower than the second half outlook [20] - Gross profit was down 3% as reported or 6.4% on an organic basis, with a reported gross profit rate of 21.4%, reflecting a 130 basis point improvement from the sale of the European staffing operations [26][27] - Adjusted earnings from operations were $11.7 million compared to $15.5 million a year ago, with reported earnings per share at $0.02 compared to $0.18 in 2023 [30][32] Business Line Data and Key Metrics Changes - Education segment achieved double-digit revenue growth of 11% year-over-year, driven by strong fill rates and net new customer wins [21] - SETT segment revenue was up 37% on a reported basis due to the acquisition of MRP, but down 5% on an organic basis [22] - Professional & Industrial (P&I) segment revenue declined 2% year-over-year, but sequentially grew 4% in Q3 [25] - OCG segment revenue improved 6%, driven by increased demand for Payroll Process Outsourcing solutions [24] Market Data and Key Metrics Changes - The staffing market demand remained under pressure, with large enterprises maintaining a cautious approach to workforce management [8] - The exit rate in September showed improvement, with P&I at almost 1% growth and Education at about 12.5% [62] Company Strategy and Development Direction - The company aims to capture market share and shift towards higher-margin, more resilient solutions, focusing on organic growth initiatives and strategic progress in specialty growth [9][41] - The integration of MRP is a top priority, with plans to leverage unique capabilities and technology opportunities post-earn-out period [43][94] - The company is focused on improving the ability to convert top-line growth to bottom-line growth while maintaining a disciplined approach to SG&A management [44] Management's Comments on Operating Environment and Future Outlook - Management expects staffing market conditions to remain consistent with Q3, with continued stabilization in revenue across segments [36] - The Education segment is anticipated to ramp up revenue sequentially from Q3 to Q4, continuing to produce double-digit year-over-year growth [36] - Management remains cautious about the SETT segment, noting the need to monitor trends closely [76] Other Important Information - The company reported total available liquidity of $159 million at the end of the quarter, with a debt-to-capital ratio of 15.6% [34] - The acquisition of MRP is expected to add approximately $120 million in revenue in Q1 2025 [37] Q&A Session Summary Question: Integration costs related to MRP - Management indicated that integration costs will be incurred primarily in 2025, with a focus on technology integration [50] Question: Gross profit rate changes across segments - Management explained that organic gross profit rates were under pressure due to fluctuations in employee-related costs and business mix [51][52] Question: Performance of MRP business post-acquisition - Management expressed satisfaction with MRP's performance, noting it has met expectations despite current market conditions [65][66] Question: Market dynamics in SETT segment - Management acknowledged unexpected softness in the SETT segment during July and August but noted a rebound in September [75] Question: Factors driving sequential improvement in P&I - Management attributed the improvement to the omnichannel strategy and a renewed focus on local markets [80]

Kelly Services (KELYA) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -52.27%. A quarter ago, it was expected that this staffing company would post earnings of $0.53 per share when it actually produced earnings of $0.71, delivering a surprise of 33.96%.Over the last four quarters, th ...

Company Overview - Kelly Services, Inc. is a leading global specialty talent solutions provider, helping companies recruit and manage skilled workers while assisting job seekers in finding employment [2] - The company has been a pioneer in the staffing industry since its inception in 1946 and has developed expertise across various industries and markets [2] - In 2023, Kelly Services reported revenue of $4.8 billion, showcasing its significant presence in the talent solutions sector [2] Upcoming Earnings Release - Kelly Services will release its third-quarter earnings on November 7, 2024, before the market opens [1] - A financial presentation will be made available on the Investor Relations page of its public website alongside the earnings release [1] - The company will host a conference call at 9 a.m. ET on the same day, with access available via internet and telephone [1] Access to Conference Call - The conference call can be accessed through the internet at kellyservices.com or by telephone at (877) 692-8955 (toll-free) or (234) 720-6979 (caller paid) [1] - A recording of the conference call will be available after 1:30 p.m. ET on November 7, 2024, through specified toll-free and caller-paid numbers [1]

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Financial Data and Key Metrics - Revenue for Q2 2024 totaled $1.06 billion, down 13.1% YoY, primarily due to the sale of the European staffing business, partially offset by the acquisition of MRP [6] - On an organic basis, YoY revenue improved 0.6%, reflecting strong growth in Education and stabilization in other businesses [7] - Adjusted EBITDA margin improved 180 basis points to 3.8%, driven by transformation efforts and the MRP acquisition [14] - Adjusted EPS for Q2 2024 was $0.71, nearly doubling from $0.36 in Q2 2023 [15] - Free cash flow for the quarter was $55 million, up from $32 million in the prior year period [16] Business Segment Performance - Education segment revenue grew 22% YoY, driven by new customer wins and increased demand [7] - SET segment revenue was up 10% on a reported basis but down 3% organically, with stable sequential trends [7] - OCG segment revenue improved 3%, driven by PPO specialty growth, while RPO and MSP revenues declined YoY [8] - Professional & Industrial segment revenue declined 9% YoY but stabilized sequentially [8] Market Performance - The company saw stabilization in demand across most businesses, with positive signs in Technology & Life Sciences [3] - The acquisition of MRP strengthened the company's position in technology, financial services, and healthcare markets [20] Strategy and Industry Competition - The company's strategy to deliver a full suite of offerings to large customers is gaining traction, improving share of wallet [4] - Kelly increased its position among the top 20 staffing firms in the U.S. by the widest margin from 2022 to 2023 [4] - The acquisition of MRP is expected to enhance revenue growth potential and EBITDA margin expansion [20] Management Commentary on Operating Environment and Future Outlook - Management expects modest sequential revenue improvement in P&I, SET, and OCG segments in H2 2024 [17] - Organic revenue growth for H2 2024 is expected to be 2.5% to 3.5%, with MRP adding $260-$270 million in revenue [17] - Adjusted EBITDA margin for H2 2024 is expected to be 3.2% to 3.3%, with MRP contributing an additional 30 basis points [19] Other Important Information - The company's debt to capital ratio is 14.1%, with $210 million of debt outstanding [16] - Global DSO improved to 57 days, down 4 days from Q2 2023 [16] - The company expects to sustain efficiency improvements from transformation-related actions, with adjusted SG&A expenses expected to decline 3.5% to 4.5% YoY organically [18] Q&A Session Summary Question: MRP Business Trends and Outlook - MRP revenue for H1 2024 was $260 million, with H2 expected to be flat to slightly down YoY [23][24] - Long-term optimism remains high for MRP due to its complementary nature with Kelly's business [25] Question: Pricing Trends Across Segments - Pricing trends remain stable, with no significant pressure on spreads observed in P&I, SET, or Education segments [26][27] Question: Future Acquisition Plans - The company is focused on integrating MRP but remains open to future acquisitions, particularly in high-margin, high-growth businesses in Science, Engineering, Technology, and Telecom or Education [28] Question: Organic Growth Drivers - Organic growth in Q2 was attributed to transformation-related initiatives, omnichannel strategy, and focus on large enterprise customers [29] Question: SG&A Expense Trends - Adjusted SG&A expenses are expected to decline 3.5% to 4.5% YoY organically in H2 2024, with MRP adding $60 million in expenses [18][33] Question: MRP Integration Progress - Integration of MRP is progressing well, with collaboration between teams and early signs of market and customer benefits [36][37] Question: Acquisition Pipeline - The acquisition pipeline remains active, with a focus on high-quality, high-growth, high-margin businesses [38] Question: Kelly Arc Update - Interest in Kelly Arc remains high, with a dozen-plus customers and hundreds of AI automation professionals on the platform [39][40] Question: Leverage and Future Acquisitions - The company's debt to EBITDA ratio is 1.7, with progress in deleveraging expected to continue [43][44] Question: Technology Investments - Annual CapEx is expected to be $20-$25 million, with potential increases due to MRP technology integration [45][46]

Kelly Services (KELYA) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 33.96%. A quarter ago, it was expected that this staffing company would post earnings of $0.46 per share when it actually produced earnings of $0.56, delivering a surprise of 21.74%. Over the last four quarters, t ...

Q2 operating earnings of $12.2 million; $28.1 million on an adjusted basis, up 95% Q2 revenue down following sale of European staffing operations; up 0.6% on an organic basis Q2 adjusted EBITDA margin increased 170 basis points to 3.7% driven by meaningful reduction in operating expenses resulting from business transformation initiatives and sale of European staffing operations Company expects further expansion of EBITDA margin from the May 31, 2024 acquisition of Motion Recruitment Partners, LLC ("MRP") TR ...