Revenue Performance - Q1 2025 revenue was $1.16 billion, an increase of 11.5% year-over-year, primarily due to the acquisition of Motion Recruitment Partners, LLC[5] - Organic revenue growth was 0.2%, with a 6.3% increase in the Education segment, while there was a 0.8% decline due to reduced demand for U.S. federal government contractors[6] - Total revenue from services for Q1 2025 was $1,164.9 million, representing an 11.5% increase from $1,045.1 million in Q1 2024[24] - Revenue from the Americas region increased to $1,139.9 million in Q1 2025, up 11.4% from $1,022.8 million in Q1 2024[25] - The Science, Engineering & Technology segment saw a revenue increase of 39.2% to $322.4 million, with a gross profit of $82.3 million[16] - The Education segment reported a revenue increase of 6.6% to $309.0 million, with a gross profit of $46.2 million[16] Earnings and Profitability - Q1 adjusted EBITDA was $34.9 million, up 4.8% year-over-year, with an adjusted EBITDA margin of 3.0%, a decrease of 20 basis points[5] - Q1 operating earnings were $10.8 million, down 59.8% from $26.8 million in Q1 2024; adjusted earnings were $22.1 million compared to $23.1 million in the prior year[6] - Earnings per share for Q1 2025 was $0.16, a decline from $0.70 in Q1 2024; adjusted earnings per share were $0.39 compared to $0.56 in the same quarter last year[6] - Adjusted earnings from operations for Q1 2025 were $22.1 million, slightly down from $23.1 million in Q1 2024[27] - Net earnings for Q1 2025 decreased to $5.8 million from $25.8 million in Q1 2024, a decline of 77.5%[20] - Adjusted net earnings for Q1 2025 were $14.3 million, down 29.6% from $20.3 million in Q1 2024[29] Cash Flow and Liquidity - Cash and equivalents at the end of Q1 2025 were $34.5 million, down from $208.9 million at the end of Q1 2024[20] - The company reported a net cash from operating activities of $23.9 million in Q1 2025, compared to a negative $25.5 million in Q1 2024[32] - The company experienced a net cash used in financing activities of $39.5 million in Q1 2025, compared to $4.7 million in Q1 2024[20] - Free cash flow for Q1 2025 was $21.4 million, a significant improvement from a negative $29.2 million in Q1 2024[32] - The current ratio for Q1 2025 was 1.6, compared to 1.8 in Q1 2024, indicating a decline in liquidity[18] Assets and Capital Structure - Total current assets decreased to $1,351.0 million in Q1 2025 from $1,436.8 million in Q1 2024, a decline of 6.0%[18] - The company reported a working capital of $528.1 million, down from $639.3 million in the previous year, a decrease of 17.4%[18] - Long-term debt increased to $204.6 million in Q1 2025 from $0 in Q1 2024, reflecting a significant change in capital structure[18] Future Outlook - The company expects year-over-year revenue growth of 6.0% to 7.0% in Q2 2025, with anticipated adjusted EBITDA margin decline of 20 to 30 basis points[5] - The company remains focused on efficiency and effectiveness to navigate the evolving macroeconomic environment and capitalize on future demand rebounds[3] Costs and Expenditures - Integration and realignment costs in Q1 2025 totaled $10.7 million, reflecting ongoing initiatives to integrate acquisitions[37] - The company incurred $0.4 million in transaction costs in Q1 2025, compared to $5.6 million in Q1 2024[31] - Capital expenditures in Q1 2025 were $2.5 million, a decrease from $3.7 million in Q1 2024[32]
Kelly Services(KELYB) - 2026 Q1 - Quarterly Results