Revenue and Profitability - Revenue from services in Q1 2025 increased by 11.5% to $1,164.9 million compared to $1,045.1 million in Q1 2024, primarily driven by the acquisition of MRP[131] - Gross profit rose by 15.0% to $236.5 million, with a gross profit rate of 20.3%, an increase of 60 basis points from the previous year[131][133] - Net earnings for Q1 2025 were $5.8 million, a decrease of 77.7% from $25.8 million in Q1 2024[131] - The Science, Engineering & Technology segment saw a revenue increase of 39.2% to $322.4 million, driven by the MRP acquisition[138] - The Education segment's revenue increased by 6.6% to $309.0 million, reflecting improved demand despite weather-related school closures[138][141] Expenses and Costs - Total SG&A expenses increased by 18.5% to $225.7 million, largely due to the MRP acquisition, with integration and realignment costs of $10.7 million included[134] - Cash used for financing activities increased to $39.5 million in Q1 2025 from $4.7 million in Q1 2024, driven by net repayments of $34.8 million on credit facilities[165] Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash totaled $34.5 million at the end of Q1 2025, down from $45.6 million at year-end 2024[161] - Net cash generated from operating activities was $23.9 million in Q1 2025, a significant improvement compared to a cash usage of $25.5 million in Q1 2024[162] - Trade accounts receivable reached $1.3 billion at the end of Q1 2025, with global Days Sales Outstanding (DSO) at 61 days, up from 59 days at year-end 2024[162] - The working capital position was $528.1 million at the end of Q1 2025, reflecting a decrease of $10.9 million from year-end 2024[163] - Cash generated from investing activities was $3.2 million in Q1 2025, a decline from $72.1 million in Q1 2024, primarily due to the sale of EMEA staffing operations in the previous year[164] Strategic Initiatives - The company is focused on integrating MRP's technology stack to modernize operations and enhance efficiency across its segments[123] - Strategic actions taken in Q1 2025 reflect the company's commitment to long-term profitability and resource alignment with customer demand[124] - The company completed the acquisition of MRP for $425.0 million, with an adjusted cash payment of $440.0 million[174] Financial Position and Ratios - The debt-to-total capital ratio improved to 14.2% at the end of Q1 2025, down from 16.2% at year-end 2024[166] - The company expects to meet cash requirements through operations, available cash, and credit facilities, including a $250.0 million accordion feature[170] - As of Q1 2025, the company had $120.0 million available on its $150.0 million revolving credit facility[175] Performance Metrics - EBITDA margin and other non-GAAP measures are used to assess cash flow generation and overall operating performance, with EBITDA being a key focus for the company[127] - Days sales outstanding (DSO) is calculated to reflect the average number of days sales remain unpaid, impacting cash flow management[128]
Kelly Services(KELYB) - 2026 Q1 - Quarterly Report