Revenue and Profitability - Revenue from services decreased by 10.4% to $4,331.8 million in 2024, compared to $4,835.7 million in 2023, primarily due to the sale of EMEA staffing operations[141][144] - Gross profit declined by 8.2% to $882.6 million, with a gross profit rate of 20.4%, an increase of 0.5 percentage points from the previous year[141][145] - Revenue from the Education segment increased by 15.5% to $972.3 million, driven by new customer wins and increased fill rates[156][159] - The Science, Engineering & Technology segment saw a revenue increase of 19.5% to $1,422.8 million, largely attributed to the acquisition of MRP[156][158] - Permanent placement revenue decreased by 24.2%, reflecting a decline in higher-margin services[144] - Consolidated total gross profit decreased by 8.2% to $882.6 million in 2024 compared to $961.4 million in 2023[166] - The Professional & Industrial segment gross profit decreased by 5.7% to $261.3 million in 2024, with a gross profit rate decline of 20 basis points[167] - Science, Engineering & Technology segment gross profit increased by 23.4% to $335.6 million in 2024, driven by the acquisition of MRP, resulting in a gross profit rate increase of 120 basis points[168] - Education segment gross profit increased by 8.6% to $139.8 million in 2024, although the gross profit rate decreased by 90 basis points[169] - Outsourcing & Consulting segment gross profit decreased by 10.8% to $145.9 million in 2024, with a significant gross profit rate decline of 480 basis points[170] Expenses and Losses - Total SG&A expenses decreased by 12.4% to $818.4 million, with restructuring charges significantly reduced from $38.6 million in 2023 to $6.1 million in 2024[141][146] - The company reported a net loss of $0.6 million in 2024, a significant decline from net earnings of $36.4 million in 2023[141][153] - Total SG&A expenses decreased by 14.3% to $766.9 million in 2024, primarily due to lower direct salaries and cost management[178] - Corporate expenses decreased by 7.5% to $58.4 million in 2024, primarily due to lower transformation-related charges[196] - The International segment reported a loss in 2024 due to the sale of EMEA staffing operations and restructuring impacts[195] Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash totaled $45.6 million at year-end 2024, down from $167.6 million at year-end 2023[205] - Net cash generated from operating activities was $26.9 million in 2024, a decrease from $76.7 million in 2023, primarily due to increased working capital requirements[206] - Trade accounts receivable increased to $1.3 billion at year-end 2024 from $1.2 billion at year-end 2023, with global Days Sales Outstanding (DSO) remaining at 59 days[207] - The working capital position was $539.0 million at year-end 2024, including the impact of the MRP acquisition, compared to $606.7 million at year-end 2023[208] - The company used $361.6 million for investing activities in 2024, significantly higher than $14.1 million in 2023, primarily due to the acquisition of MRP and CTC[209] - Cash generated from financing activities was $214.8 million in 2024, compared to cash used of $59.6 million in 2023, driven by net borrowings of $239.4 million[213] Acquisitions and Sales - The acquisition of Motion Recruitment Partners, LLC in May 2024 is expected to enhance staffing and consulting capabilities across technology and telecommunications sectors[135] - The company completed the sale of its European staffing operations on January 2, 2024, and the Ayers Group on June 12, 2024, focusing on North American staffing and global MSP and RPO solutions[134][135] - The company completed the sale of its EMEA staffing operations for cash proceeds of $110.6 million, netting $77.1 million after cash disposed[220] - The acquisition of MRP was completed for a purchase price of $425.0 million, with the company paying $440.0 million in cash after adjustments[221] Debt and Financial Ratios - The debt-to-total capital ratio was 16.2% at year-end 2024, with no debt outstanding at year-end 2023[215] - The company repurchased $10.0 million of Class A common stock in fiscal 2024, with $40.0 million remaining under the share repurchase program[226] Goodwill and Impairment - The company recorded a goodwill impairment charge of $72.8 million for the Softworld reporting unit in 2024, with a remaining goodwill balance of $38.5 million[246] - Total goodwill amounted to $304.2 million and $151.1 million at year-end 2024 and 2023, respectively[252] - The estimated fair value of the MRP reporting unit exceeds its carrying value by less than 10%, indicating potential future impairment risks[247] - The company performed annual impairment tests for all reporting units with goodwill in the fourth quarter for the fiscal years ended 2024 and 2023, concluding no impairment for PTS and Education reporting units in 2023[249] Risk Management - The Company reported that actual results may differ materially from forward-looking statements due to various risk factors, including changing market conditions and legal liabilities[259] - The Company is exposed to foreign currency risk primarily related to its foreign subsidiaries, which provide a natural hedge against currency risks[261] - The Company entered into a foreign currency forward contract with a notional amount of €90.0 million to manage foreign currency risk, resulting in an unrealized loss of $3.6 million as of year-end 2023[262] - A total loss of $2.4 million was realized upon settlement of the foreign currency forward contract on January 5, 2024, leading to a gain of $1.2 million recorded in Q1 2024[262] - The Company entered into another foreign currency forward contract with a notional amount of €17.0 million related to expected additional proceeds from the sale of EMEA staffing operations[263] - The interest rate swap agreements locked in variable SOFR components at fixed rates of 4.772% and 4.468% for portions of long-term borrowings, effective through July 17, 2025, and January 17, 2026, respectively[265] - A hypothetical fluctuation of 10% in market interest rates would not have had a material impact on 2024 earnings[265] - The obligation under the nonqualified deferred compensation plan is influenced by movements in equity and debt markets, with investments designed to mitigate this risk[266]

Revenue Performance - Q4 revenue was $1.2 billion, a decrease of 3.3% year-over-year, but an increase of 4.4% on an organic basis[5] - Full-year revenue totaled $4.3 billion, down 10.4% as reported, but up 0.5% on an organic basis[12] - Revenue from services decreased to $4,331.8 million in 2024 from $4,835.7 million in 2023, a decline of 10.4%[20] - Revenue from services decreased by 3.3% year-over-year, totaling $1,191.1 million in Q4 2024 compared to $1,232.2 million in Q4 2023[33] - The Americas region saw a revenue increase of 16.2%, with the United States contributing $1,075.5 million, up from $908.7 million in the previous year[33] - The acquisition of Motion Recruitment Partners contributed 9.8% to reported Q4 year-over-year revenue growth[6] - The Science, Engineering & Technology segment saw a revenue increase of 37.9%, reaching $396.1 million in 2024 from $287.3 million in 2023[23] - The Professional & Industrial segment reported a revenue increase of 4.4%, totaling $384.2 million in 2024 compared to $368.1 million in 2023[23] - The Education segment's revenue grew by 12.1%, reaching $289.2 million in 2024 from $258.0 million in 2023[23] - The Outsourcing & Consulting segment's revenue increased by 8.8%, totaling $122.3 million in 2024 compared to $112.3 million in 2023[23] Profitability and Earnings - Q4 adjusted EBITDA was $43.5 million, up 34% year-over-year, with an adjusted EBITDA margin of 3.7%, an increase of 110 basis points[5] - Adjusted operating income for the full year was $92.1 million, with adjusted EBITDA of $143.5 million, reflecting a 31% increase compared to the prior year[12] - Adjusted EBITDA increased to $143.5 million, representing a growth of 34.1% compared to $109.4 million in 2023[20] - In Q4 2024, net earnings were $(31.8) million compared to $11.4 million in Q4 2023, reflecting a significant decline[39] - Adjusted net earnings for Q4 2024 were $29.1 million, down from $34.1 million in Q4 2023, indicating a decrease of approximately 14.7%[39] - Adjusted EBITDA for Q4 2024 was $43.5 million, an increase of 33.1% from $32.5 million in Q4 2023, with an adjusted EBITDA margin of 3.7% compared to 2.6%[41] - The company reported a net loss of $0.6 million in 2024, a significant decline from net earnings of $36.4 million in 2023[20] - Basic earnings per share decreased to $(0.02) in 2024 from $0.99 in 2023, reflecting a drop of 102.0%[20] Costs and Charges - The company reported an operating loss of $56.7 million in Q4, primarily due to $80.8 million in non-cash impairment charges[6] - The company reported a goodwill impairment charge of $72.8 million in Q4 2024, impacting overall earnings from operations[36] - Goodwill impairment charge for Q4 2024 was $54.4 million, which significantly impacted net earnings[39] - The 2024 goodwill impairment charge is influenced by market conditions and results from the annual impairment test related to Softworld[48] - The asset impairment charge in 2024 for certain right-of-use assets is due to adjustments in the utilization of the leased headquarters facility[48] - Integration costs in 2024 are associated with the MRP acquisition and aligning processes and technology across the company[49] - Transaction costs in 2024 related to the sale of EMEA staffing operations amounted to $12.0 million for the year, with $3.1 million in Q4 2024[51] - Restructuring charges for 2024 include $3.0 million of severance and $3.1 million for transformation execution, while 2023 restructuring charges totaled $17.7 million[53] Financial Position - Total assets increased to $2,632.3 million in 2024 from $2,581.6 million in 2023, representing a growth of 2.0%[29] - Total current liabilities decreased to $826.5 million in 2024 from $1,019.9 million in 2023, a reduction of 18.9%[29] - The current ratio improved to 1.7 in 2024, compared to 1.6 in 2023, indicating better short-term financial health[29] - Total stockholders' equity decreased to $1,234.6 million in 2024 from $1,253.7 million in 2023, a decline of 1.5%[29] Future Outlook - The company expects incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025[5] - The company plans to focus on market expansion and new product development to drive future growth despite recent challenges[30] - The planned retirement of CEO Peter Quigley by the end of 2025 has been announced, with a search for his successor underway[9]

Financial Performance - Q3 2024 revenue totaled $1.04 billion, a 7.1% decrease year-over-year, primarily due to the sale of European staffing operations[2] - Q3 operating earnings were $2.6 million, compared to $0.1 million in Q3 2023; adjusted earnings were $11.7 million, down 24.5% from $15.5 million in the prior year[3] - Earnings per share in Q3 2024 were $0.02, down from $0.18 in Q3 2023; adjusted earnings per share were $0.21 compared to $0.50 in the same quarter last year[4] - The company reported a gross profit of $221.7 million in Q3 2024, down from $228.5 million in Q3 2023, reflecting a 3.0% decrease[10] - Revenue from services for the 39 weeks ended September 29, 2024, was $3,140.7 million, a decrease of 12.8% compared to $3,603.5 million in the same period of 2023[12] - Gross profit for the same period was $641.1 million, down 11.4% from $723.2 million in 2023[12] - Net earnings increased to $31.2 million, representing a 24.6% increase from $25.0 million in the prior year[12] - Basic earnings per share rose to $0.86, a 26.5% increase compared to $0.68 in the previous year[12] - Net earnings for Q3 2024 were $0.8 million, a decrease from $6.6 million in Q3 2023, while year-to-date earnings increased to $31.2 million from $25.0 million[29] - Adjusted net earnings for Q3 2024 were $7.7 million, compared to $18.1 million in Q3 2023, with year-to-date adjusted earnings rising to $54.1 million from $47.5 million[29] EBITDA and Margins - Adjusted EBITDA margin increased by 20 basis points to 2.5% in Q3 2024[1] - Adjusted EBITDA for the third quarter of 2024 was $100.0 million, up 23.1% from $76.9 million in the same quarter of 2023[13] - Adjusted EBITDA for Q3 2024 was $26.2 million, up from $25.5 million in Q3 2023, with an adjusted EBITDA margin of 2.5% compared to 2.3% in the prior year[32] - The Professional & Industrial business unit reported an adjusted EBITDA of $10.2 million for Q3 2024, with a margin of 2.7%[33] - The Science, Engineering & Technology business unit achieved an adjusted EBITDA of $25.0 million for Q3 2024, with a margin of 6.2%[33] Revenue Segmentation - The acquisition of Motion Recruitment Partners (MRP) contributed 11.2% to reported Q3 year-over-year revenue growth[2] - Revenue from the Science, Engineering & Technology segment increased by 37.1% to $405.2 million, compared to $295.7 million in the prior year[16] - The Professional & Industrial segment reported a revenue decrease of 2.0% to $370.4 million, down from $378.0 million[16] - The Education segment's revenue increased by 10.9% to $142.1 million, compared to $128.1 million in the previous year[16] - Revenue from Professional & Industrial services decreased by 7.3% to $1,086.5 million compared to $1,171.4 million in 2023[18] - Revenue from Science, Engineering & Technology services rose by 13.6% to $1,026.7 million, with a gross profit of $240.8 million[18] - Revenue from Education services increased by 17.0% to $683.1 million, with a gross profit of $98.7 million[18] - Revenue from services in the Americas for Q3 2024 was $1,012.2 million, a 13.6% increase compared to $891.3 million in Q3 2023[21] - The company experienced a 95.3% decline in revenue from the Europe region in Q3 2024, with total revenue of $10.1 million compared to $215.8 million in Q3 2023[21] Costs and Expenses - Cost of services in Q3 2024 was $816.4 million, compared to $889.5 million in the same quarter of 2023, a decrease of 8.2%[10] - Adjusted SG&A expenses for Q3 2024 were $210.0 million, slightly down from $213.0 million in Q3 2023[25] - The company reported a net cash used in investing activities of $355.5 million in 2024, compared to $10.8 million in 2023[7] - Cash, cash equivalents, and restricted cash at the end of the period were $40.4 million, down from $126.5 million in 2023[7] - The total cash from financing activities was $217.3 million in 2024, a significant increase from a cash outflow of $56.6 million in 2023[7] Dividends and Shareholder Returns - The board declared a dividend of $0.075 per share, payable on December 4, 2024[5] Assets and Liabilities - Total assets increased to $2,688.9 million from $2,581.6 million in December 2023[19] - Current assets decreased to $1,357.5 million from $1,626.6 million in December 2023[19] - Total current liabilities decreased to $841.0 million from $1,019.9 million in December 2023[19] - Debt-to-capital ratio stands at 15.1%, indicating a stable financial position[19] Cash Flow - Year-to-Date Free Cash Flow was $2.8 million, a significant decrease from $61.4 million in 2023[19] - Total cash from operating activities decreased to $11.9 million in 2024 from $33.4 million in 2023, a decline of 64.4%[7] - Free cash flow for the year-to-date 2024 was $21.0 million, with net cash from operating activities at $33.4 million and capital expenditures of $12.4 million[37] Strategic Initiatives - The company is focusing on growth and efficiency initiatives to capitalize on future staffing demand rebounds[5] - The company anticipates continued focus on market expansion and integration of recent acquisitions to drive future growth[39] - Management emphasizes the importance of non-GAAP measures for assessing financial performance and comparability with prior periods[40] Transaction and Restructuring Costs - Transaction costs in Q3 2024 included $1.8 million for employee termination and transition costs related to the sale of EMEA staffing operations, and $1.4 million for the acquisition of MRP[43] - Year-to-date transaction costs for the sale of EMEA staffing operations reached $8.9 million, while acquisition costs for MRP totaled $9.3 million[43] - Restructuring charges in the first six months of 2024 included $3.3 million for severance and $3.1 million for transformation execution costs[45] - Adjustments to restructuring charges in Q3 2024 amounted to $0.2 million, continuing the comprehensive transformation initiative started in Q2 2023[45] - Restructuring charges in Q3 2023 included $10.4 million for severance and $4.5 million for transformation execution costs[45] - Integration costs in Q3 2024 were incurred for initiatives aimed at integrating the MRP acquisition and aligning processes and technology across the company[46]

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 March 31, 2024 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 jurisdic ...

Exhibit 99.1 Kelly Reports First-Quarter 2024 Earnings TROY, Mich. (May 9, 2024) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2024. Peter Quigley, president and chief executive officer, announced revenue for the first quarter of 2024 totaled $1.05 billion, a 17.6% decrease, compared to the corresponding quarter of 2023 resulting primarily from the sale of the company's European staffing operations on January 2, 2024. Excludin ...

Revenue Performance - Revenue from services decreased by 2.6% to $4,835.7 million in 2023 compared to $4,965.4 million in 2022[130]. - The Education segment saw a significant revenue increase of 32.3% to $841.9 million, driven by improved fill rates and new customer wins[145][148]. - The Professional & Industrial segment experienced an 11.0% revenue decline to $1,483.1 million, primarily due to a 16.2% drop in staffing services[145][146]. - Permanent placement revenue decreased by 33.6% from 2022, impacting overall revenue performance[131]. Gross Profit and Margins - Gross profit declined by 5.0% to $961.4 million, with a gross profit rate of 19.9%, down 0.5 percentage points from 2022[130][132]. - Consolidated total gross profit decreased by 5.0% to $961.4 million in 2023 from $1,011.8 million in 2022[153]. - The gross profit rate for the consolidated total declined by 0.5 percentage points to 19.9% in 2023 from 20.4% in 2022[153]. - Professional & Industrial segment gross profit decreased by 12.7% to $263.9 million, with a gross profit rate decline of 0.4 percentage points to 17.8%[153][154]. - Science, Engineering & Technology segment gross profit decreased by 8.4% to $272.0 million, with a gross profit rate decline of 0.7 percentage points to 22.8%[153][155]. - Education segment gross profit increased by 28.4% to $128.7 million, despite a gross profit rate decrease of 0.5 percentage points to 15.3%[153][155]. Operating Expenses - Total SG&A expenses decreased by 0.9% to $934.7 million, with restructuring charges and transaction costs amounting to $42.4 million[130][133]. - Corporate expenses increased by 29.8% to $121.9 million, primarily due to restructuring and transformation charges[165]. Earnings and Cash Flow - The net earnings for 2023 were $36.4 million, a significant recovery from a net loss of $62.5 million in 2022[143]. - Earnings from Operations for the consolidated total increased by 65.0% to $24.3 million in 2023 from $14.8 million in 2022[168]. - Education segment earnings increased by 96.6% to $36.3 million, driven by higher revenue and gross profit[170]. - Free cash flow is a key measure indicating changes in cash balances from operating activities, net of capital expenditures[127]. Cash and Liquidity - Cash, cash equivalents, and restricted cash totaled $167.6 million at year-end 2023, an increase from $162.4 million at year-end 2022[177]. - The company expects to meet cash requirements through operations, cash equivalents, and a $200.0 million revolving credit facility, which had full available capacity at year-end 2023[193]. - The company repurchased $42.2 million of Class A common stock in fiscal 2023, completing a $50.0 million share repurchase program[195]. - The company had $100.6 million of available capacity on its $150.0 million securitization facility at year-end 2023[193]. Obligations and Commitments - At year-end 2023, the company had total contractual obligations of $445.9 million, with $97.9 million due within one year[188]. - The company has no material unrecorded commitments or guarantees associated with related parties or unconsolidated entities[188]. Goodwill and Impairment - The annual impairment test for goodwill was completed, determining that the estimated fair value of the Softworld and PTS reporting units exceeded their carrying values, with the PTS reporting unit exceeding by more than 10%[213][214]. - The estimated fair value of the Softworld reporting unit exceeded its carrying value by less than 10%, indicating potential future impairment risks if revenue and profit margin expectations are not met[214]. - Total goodwill remained constant at $151.1 million for both year-end 2023 and 2022[218]. - A total goodwill impairment charge of $41.0 million was recorded for RocketPower as of year-end 2022, including $30.7 million in Q3 and $10.3 million in Q4[217]. Risk Management - A foreign currency forward contract with a notional amount of €90 million was entered into to manage foreign currency risk, resulting in a total loss of $2.4 million upon settlement[227]. - An unrealized loss of $3.6 million associated with the forward contract was recorded as of December 31, 2023, with a projected gain of $1.2 million expected in Q1 2024[227]. - Interest rate risks are present due to the use of a multi-currency line of credit, but a hypothetical 10% fluctuation in market interest rates would not materially impact 2023 earnings[228]. - The company is exposed to market risk from obligations under its nonqualified deferred compensation plan, which fluctuate based on equity and debt market movements[229]. Strategic Focus - The company is focused on a refreshed go-to-market strategy to enhance service delivery to large enterprise customers in 2024[121]. - EBITDA margin improvements are expected as the company streamlines operations following the sale of its European staffing operations[122]. - The company expects working capital requirements to increase if demand for services rises[192]. - The company utilizes a global cash pooling arrangement to optimize capital resources among subsidiaries[191]. - The company has $33.5 million of international cash classified as held for sale related to the EMEA operations[191].

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 1, 2023 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 ...

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 2, 2023 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 ...

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 2, 2023 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 ...

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 2, 2022 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 ...