MEDIA CONTACT: | ANALYST CONTACT: |
Jane Stehney | James Polehna |
(248) 765-6864 | (248) 244-4586 |
stehnja@kellyservices.com | james.polehna@kellyservices.com |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||
FOR THE 13 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020 | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars except per share data) | ||||||||||
% | CC % | |||||||||
2021 | 2020 | Change | Change | Change | ||||||
Revenue from services | $ | 1,195.4 | $ | 1,038.2 | $ | 157.2 | 15.1 | % | 14.5 | % |
Cost of services | 966.5 | 847.2 | 119.3 | 14.1 | ||||||
Gross profit | 228.9 | 191.0 | 37.9 | 19.8 | 19.2 | |||||
Selling, general and administrative expenses | 219.9 | 193.4 | 26.5 | 13.7 | 13.2 | |||||
Earnings (loss) from operations | 9.0 | (2.4) | 11.4 | NM | ||||||
Gain (loss) on investment in Persol Holdings | 35.5 | 16.8 | 18.7 | 112.0 | ||||||
Other income (expense), net | (0.3) | (0.7) | 0.4 | 50.1 | ||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 44.2 | 13.7 | 30.5 | 222.8 | ||||||
Income tax expense (benefit) | 11.1 | (1.2) | 12.3 | NM | ||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | 33.1 | 14.9 | 18.2 | 122.4 | ||||||
Equity in net earnings (loss) of affiliate | 1.7 | 1.8 | (0.1) | (3.6) | ||||||
Net earnings (loss) | $ | 34.8 | $ | 16.7 | $ | 18.1 | 108.9 | |||
Basic earnings (loss) per share | $ | 0.87 | $ | 0.42 | $ | 0.45 | 107.1 | |||
Diluted earnings (loss) per share | $ | 0.87 | $ | 0.42 | $ | 0.45 | 107.1 | |||
STATISTICS: | ||||||||||
Permanent placement revenue (included in revenue from services) | $ | 19.7 | $ | 9.1 | $ | 10.6 | 118.0 | % | 116.6 | % |
Gross profit rate | 19.2 | % | 18.4 | % | 0.8 | pts. | ||||
Conversion rate | 3.9 | % | (1.3) | % | 5.2 | pts. | ||||
Adjusted EBITDA | $ | 17.3 | $ | 13.2 | $ | 4.1 | ||||
Adjusted EBITDA margin | 1.4 | % | 1.3 | % | 0.1 | pts. | ||||
Effective income tax rate | 25.2 | % | (8.5) | % | 33.7 | pts. | ||||
Average number of shares outstanding (millions): | ||||||||||
Basic | 39.4 | 39.3 | ||||||||
Diluted | 39.5 | 39.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020 | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars except per share data) | ||||||||||
% | CC % | |||||||||
2021 | 2020 | Change | Change | Change | ||||||
Revenue from services | $ | 3,659.4 | $ | 3,274.6 | $ | 384.8 | 11.8 | % | 10.3 | % |
Cost of services | 2,986.2 | 2,671.1 | 315.1 | 11.8 | ||||||
Gross profit | 673.2 | 603.5 | 69.7 | 11.5 | 10.1 | |||||
Selling, general and administrative expenses | 639.9 | 591.0 | 48.9 | 8.3 | 7.0 | |||||
Goodwill impairment charge | - | 147.7 | (147.7) | NM | ||||||
Gain on sale of assets | - | (32.1) | 32.1 | NM | ||||||
Earnings (loss) from operations | 33.3 | (103.1) | 136.4 | NM | ||||||
Gain (loss) on investment in Persol Holdings | 71.8 | (31.4) | 103.2 | NM | ||||||
Other income (expense), net | (4.0) | 3.6 | (7.6) | (211.5) | ||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 101.1 | (130.9) | 232.0 | NM | ||||||
Income tax expense (benefit) | 19.0 | (36.5) | 55.5 | 152.0 | ||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | 82.1 | (94.4) | 176.5 | NM | ||||||
Equity in net earnings (loss) of affiliate | 2.3 | (1.0) | 3.3 | NM | ||||||
Net earnings (loss) | $ | 84.4 | $ | (95.4) | $ | 179.8 | NM | |||
Basic earnings (loss) per share | $ | 2.12 | $ | (2.43) | $ | 4.55 | NM | |||
Diluted earnings (loss) per share | $ | 2.12 | $ | (2.43) | $ | 4.55 | NM | |||
STATISTICS: | ||||||||||
Permanent placement revenue (included in revenue from services) | $ | 54.3 | $ | 28.9 | $ | 25.4 | 87.8 | % | 84.5 | % |
Gross profit rate | 18.4 | % | 18.4 | % | - | pts. | ||||
Conversion rate | 4.9 | % | (17.1) | % | 22.0 | pts. | ||||
Adjusted EBITDA | $ | 56.4 | $ | 48.6 | $ | 7.8 | ||||
Adjusted EBITDA margin | 1.5 | % | 1.5 | % | - | pts. | ||||
Effective income tax rate | 18.8 | % | 27.9 | % | (9.1) | pts. | ||||
Average number of shares outstanding (millions): | ||||||||||
Basic | 39.4 | 39.3 | ||||||||
Diluted | 39.5 | 39.3 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Third Quarter | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Professional & Industrial | ||||||||
Revenue from services | $ | 452.6 | $ | 446.5 | 1.4 | % | 1.0 | % |
Gross profit | 76.6 | 77.1 | (0.5) | (0.9) | ||||
SG&A expenses excluding restructuring charges | 69.4 | 65.4 | 6.2 | 5.9 | ||||
Restructuring charges | - | (0.1) | NM | NM | ||||
Total SG&A expenses | 69.4 | 65.3 | 6.2 | 5.9 | ||||
Earnings (loss) from operations | 7.2 | 11.8 | (38.1) | |||||
Earnings (loss) from operations excluding restructuring charges | 7.2 | 11.7 | (38.1) | |||||
Gross profit rate | 16.9 | % | 17.3 | % | (0.4) | pts. | ||
Science, Engineering & Technology | ||||||||
Revenue from services | $ | 306.2 | $ | 244.0 | 25.5 | % | 25.3 | % |
Gross profit | 68.1 | 50.7 | 34.5 | 34.4 | ||||
SG&A expenses excluding restructuring charges | 48.4 | 31.3 | 54.8 | 54.6 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 48.4 | 31.3 | 54.8 | 54.6 | ||||
Earnings (loss) from operations | 19.7 | 19.4 | 1.7 | |||||
Earnings (loss) from operations excluding restructuring charges | 19.7 | 19.4 | 1.7 | |||||
Gross profit rate | 22.3 | % | 20.8 | % | 1.5 | pts. | ||
Education | ||||||||
Revenue from services | $ | 66.6 | $ | 27.5 | 142.1 | % | 142.1 | % |
Gross profit | 10.0 | 4.1 | 139.7 | 139.7 | ||||
SG&A expenses excluding restructuring charges | 17.0 | 11.6 | 45.9 | 45.9 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 17.0 | 11.6 | 46.1 | 46.1 | ||||
Earnings (loss) from operations | (7.0) | (7.5) | 6.6 | |||||
Earnings (loss) from operations excluding restructuring charges | (7.0) | (7.5) | 6.7 | |||||
Gross profit rate | 15.1 | % | 15.2 | % | (0.1) | pts. | ||
Outsourcing & Consulting | ||||||||
Revenue from services | $ | 113.4 | $ | 87.9 | 29.1 | % | 28.6 | % |
Gross profit | 37.3 | 29.1 | 27.9 | 26.9 | ||||
SG&A expenses excluding restructuring charges | 30.7 | 25.4 | 20.5 | 19.8 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 30.7 | 25.4 | 20.5 | 19.7 | ||||
Earnings (loss) from operations | 6.6 | 3.7 | 79.1 | |||||
Earnings (loss) from operations excluding restructuring charges | 6.6 | 3.7 | 78.7 | |||||
Gross profit rate | 32.8 | % | 33.1 | % | (0.3) | pts. | ||
International | ||||||||
Revenue from services | $ | 256.8 | $ | 232.4 | 10.5 | % | 8.8 | % |
Gross profit | 36.9 | 30.0 | 22.7 | 21.0 | ||||
SG&A expenses excluding restructuring charges | 34.5 | 39.9 | (13.6) | (14.8) | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 34.5 | 39.9 | (13.6) | (14.8) | ||||
Earnings (loss) from operations | 2.4 | (9.9) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 2.4 | (9.9) | NM | |||||
Gross profit rate | 14.4 | % | 12.9 | % | 1.5 | pts. |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
September Year to Date | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Professional & Industrial | ||||||||
Revenue from services | $ | 1,386.7 | $ | 1,346.7 | 3.0 | % | 2.5 | % |
Gross profit | 227.7 | 241.1 | (5.5) | (6.0) | ||||
SG&A expenses excluding restructuring charges | 207.8 | 206.1 | 0.8 | 0.5 | ||||
Restructuring charges | - | 4.3 | NM | NM | ||||
Total SG&A expenses | 207.8 | 210.4 | (1.2) | (1.6) | ||||
Earnings (loss) from operations | 19.9 | 30.7 | (34.9) | |||||
Earnings (loss) from operations excluding restructuring charges | 19.9 | 35.0 | (43.0) | |||||
Gross profit rate | 16.4 | % | 17.9 | % | (1.5) | pts. | ||
Science, Engineering & Technology | ||||||||
Revenue from services | $ | 859.1 | $ | 761.5 | 12.8 | % | 12.6 | % |
Gross profit | 187.8 | 156.0 | 20.4 | 20.2 | ||||
SG&A expenses excluding restructuring charges | 131.0 | 98.6 | 32.9 | 32.7 | ||||
Restructuring charges | - | 0.5 | NM | NM | ||||
Total SG&A expenses | 131.0 | 99.1 | 32.2 | 32.0 | ||||
Earnings (loss) from operations | 56.8 | 56.9 | (0.2) | |||||
Earnings (loss) from operations excluding restructuring charges | 56.8 | 57.4 | (1.1) | |||||
Gross profit rate | 21.9 | % | 20.5 | % | 1.4 | pts. | ||
Education | ||||||||
Revenue from services | $ | 284.1 | $ | 195.1 | 45.6 | % | 45.6 | % |
Gross profit | 44.0 | 28.8 | 52.5 | 52.5 | ||||
SG&A expenses excluding restructuring charges | 46.5 | 36.9 | 26.0 | 26.0 | ||||
Restructuring charges | - | 0.8 | NM | NM | ||||
Total SG&A expenses | 46.5 | 37.7 | 23.1 | 23.1 | ||||
Earnings (loss) from operations | (2.5) | (8.9) | 72.1 | |||||
Earnings (loss) from operations excluding restructuring charges | (2.5) | (8.1) | 69.0 | |||||
Gross profit rate | 15.5 | % | 14.8 | % | 0.7 | pts. | ||
Outsourcing & Consulting | ||||||||
Revenue from services | $ | 320.0 | $ | 261.0 | 22.6 | % | 21.2 | % |
Gross profit | 103.4 | 87.1 | 18.7 | 16.3 | ||||
SG&A expenses excluding restructuring charges | 89.2 | 79.1 | 12.7 | 10.9 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 89.2 | 79.1 | 12.6 | 10.8 | ||||
Earnings (loss) from operations | 14.2 | 8.0 | 79.0 | |||||
Earnings (loss) from operations excluding restructuring charges | 14.2 | 8.0 | 77.5 | |||||
Gross profit rate | 32.3 | % | 33.4 | % | (1.1) | pts. | ||
International | ||||||||
Revenue from services | $ | 810.1 | $ | 710.6 | 14.0 | % | 9.0 | % |
Gross profit | 110.3 | 90.5 | 21.8 | 16.3 | ||||
SG&A expenses excluding restructuring charges | 102.2 | 100.3 | 1.8 | (2.8) | ||||
Restructuring charges | - | 1.1 | NM | NM | ||||
Total SG&A expenses | 102.2 | 101.4 | 0.7 | (3.9) | ||||
Earnings (loss) from operations | 8.1 | (10.9) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 8.1 | (9.8) | NM | |||||
Gross profit rate | 13.6 | % | 12.7 | % | 0.9 | pts. |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
October 3, 2021 | January 3, 2021 | September 27, 2020 | ||||
Current Assets | ||||||
Cash and equivalents | $ | 43.5 | $ | 223.0 | $ | 248.2 |
Trade accounts receivable, less allowances of | ||||||
$12.3, $13.3, and $11.4, respectively | 1,423.9 | 1,265.2 | 1,111.4 | |||
Prepaid expenses and other current assets | 71.0 | 61.4 | 71.4 | |||
Total current assets | 1,538.4 | 1,549.6 | 1,431.0 | |||
Noncurrent Assets | ||||||
Property and equipment, net | 36.1 | 41.0 | 40.8 | |||
Operating lease right-of-use assets | 79.3 | 83.2 | 84.0 | |||
Deferred taxes | 304.0 | 282.0 | 273.3 | |||
Goodwill, net | 114.8 | 3.5 | - | |||
Investment in Persol Holdings | 222.6 | 164.2 | 145.8 | |||
Investment in equity affiliate | 122.0 | 118.5 | 115.6 | |||
Other assets | 386.3 | 319.9 | 301.2 | |||
Total noncurrent assets | 1,265.1 | 1,012.3 | 960.7 | |||
Total Assets | $ | 2,803.5 | $ | 2,561.9 | $ | 2,391.7 |
Current Liabilities | ||||||
Short-term borrowings | $ | - | $ | 0.3 | $ | 0.5 |
Accounts payable and accrued liabilities | 645.2 | 536.8 | 458.4 | |||
Operating lease liabilities | 18.4 | 19.6 | 19.5 | |||
Accrued payroll and related taxes | 334.9 | 293.0 | 240.7 | |||
Accrued workers' compensation and other claims | 21.1 | 22.7 | 25.0 | |||
Income and other taxes | 58.4 | 53.2 | 52.4 | |||
Total current liabilities | 1,078.0 | 925.6 | 796.5 | |||
Noncurrent Liabilities | ||||||
Operating lease liabilities | 64.1 | 67.5 | 68.1 | |||
Accrued payroll and related taxes | 58.2 | 58.5 | 75.7 | |||
Accrued workers' compensation and other claims | 39.1 | 42.2 | 44.4 | |||
Accrued retirement benefits | 213.5 | 205.8 | 188.2 | |||
Other long-term liabilities | 76.5 | 59.3 | 52.7 | |||
Total noncurrent liabilities | 451.4 | 433.3 | 429.1 | |||
Stockholders' Equity | ||||||
Common stock | 40.1 | 40.1 | 40.1 | |||
Treasury stock | (15.2) | (17.1) | (17.2) | |||
Paid-in capital | 23.2 | 21.3 | 20.6 | |||
Earnings invested in the business | 1,245.3 | 1,162.9 | 1,139.5 | |||
Accumulated other comprehensive income (loss) | (19.3) | (4.2) | (16.9) | |||
Total stockholders' equity | 1,274.1 | 1,203.0 | 1,166.1 | |||
Total Liabilities and Stockholders' Equity | $ | 2,803.5 | $ | 2,561.9 | $ | 2,391.7 |
STATISTICS: | ||||||
Working Capital | $ | 460.4 | $ | 624.0 | $ | 634.5 |
Current Ratio | 1.4 | 1.7 | 1.8 | |||
Debt-to-capital % | 0.0 | % | 0.0 | % | 0.0 | % |
Global Days Sales Outstanding | 63 | 64 | 61 | |||
Year-to-Date Free Cash Flow | $ | 23.5 | $ | 170.5 | $ | 204.2 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020 | ||||
(UNAUDITED) | ||||
(In millions of dollars) | ||||
2021 | 2020 | |||
Cash flows from operating activities: | ||||
Net earnings (loss) | $ | 84.4 | $ | (95.4) |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | ||||
Goodwill impairment charge | - | 147.7 | ||
Deferred income taxes on goodwill impairment charge | - | (23.0) | ||
Depreciation and amortization | 22.0 | 18.0 | ||
Operating lease asset amortization | 16.0 | 15.9 | ||
Provision for credit losses and sales allowances | 0.8 | 10.7 | ||
Stock-based compensation | 4.0 | 2.9 | ||
(Gain) loss on investment in Persol Holdings | (71.8) | 31.4 | ||
Gain on sale of assets | - | (32.1) | ||
Equity in net (earnings) loss of PersolKelly Pte. Ltd. | (2.3) | 1.0 | ||
Other, net | 4.6 | 1.8 | ||
Changes in operating assets and liabilities, net of acquisitions | (26.7) | 137.6 | ||
Net cash from operating activities | 31.0 | 216.5 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (7.5) | (12.3) | ||
Proceeds from sale of assets | - | 55.5 | ||
Acquisition of companies, net of cash received | (213.0) | (36.4) | ||
Proceeds from company-owned life insurance | 10.4 | 2.3 | ||
Proceeds from sale of Brazil, net of cash disposed | - | 1.2 | ||
Proceeds from loans with equity affiliate | 5.8 | - | ||
Proceeds from (investment in) equity securities | 5.0 | (0.2) | ||
Other investing activities | 0.9 | 0.2 | ||
Net cash (used in) from investing activities | (198.4) | 10.3 | ||
Cash flows from financing activities: | ||||
Net change in short-term borrowings | (0.2) | (1.5) | ||
Financing lease payments | (1.3) | (1.0) | ||
Dividend payments | (2.0) | (3.0) | ||
Payments of tax withholding for stock awards | (0.6) | (1.2) | ||
Contingent consideration payments | (1.6) | - | ||
Other financing activities | - | (0.1) | ||
Net cash used in financing activities | (5.7) | (6.8) | ||
Effect of exchange rates on cash, cash equivalents and restricted cash | (3.9) | 3.4 | ||
Net change in cash, cash equivalents and restricted cash | (177.0) | 223.4 | ||
Cash, cash equivalents and restricted cash at beginning of period | 228.1 | 31.0 | ||
Cash, cash equivalents and restricted cash at end of period | $ | 51.1 | $ | 254.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
REVENUE FROM SERVICES BY GEOGRAPHY | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Third Quarter | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Americas | ||||||||
United States | $ | 851.7 | $ | 740.6 | 15.0 | % | 15.0 | % |
Canada | 43.3 | 30.3 | 42.8 | 35.1 | ||||
Puerto Rico | 25.5 | 18.4 | 39.2 | 39.2 | ||||
Mexico | 14.4 | 27.4 | (47.4) | (52.7) | ||||
Brazil | - | 1.8 | NM | NM | ||||
Total Americas Region | 934.9 | 818.5 | 14.2 | 13.8 | ||||
Europe | ||||||||
France | 56.3 | 48.8 | 15.4 | 14.3 | ||||
Switzerland | 54.5 | 49.6 | 10.0 | 9.8 | ||||
Portugal | 36.6 | 31.7 | 15.6 | 14.6 | ||||
Russia | 33.0 | 27.2 | 21.3 | 21.1 | ||||
Italy | 18.5 | 14.5 | 27.5 | 26.4 | ||||
United Kingdom | 17.2 | 16.4 | 4.5 | (2.1) | ||||
Germany | 9.0 | 7.0 | 28.2 | 27.3 | ||||
Ireland | 7.4 | 4.9 | 49.9 | 48.8 | ||||
Other | 17.3 | 12.0 | 44.4 | 43.0 | ||||
Total Europe Region | 249.8 | 212.1 | 17.8 | 16.6 | ||||
Total Asia-Pacific Region | 10.7 | 7.6 | 41.4 | 39.3 | ||||
Total Kelly Services, Inc. | $ | 1,195.4 | $ | 1,038.2 | 15.1 | % | 14.5 | % |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
REVENUE FROM SERVICES BY GEOGRAPHY | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
September Year to Date | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Americas | ||||||||
United States | $ | 2,604.8 | $ | 2,369.2 | 9.9 | % | 9.9 | % |
Canada | 116.9 | 88.7 | 31.8 | 21.9 | ||||
Mexico | 82.1 | 78.6 | 4.5 | (1.8) | ||||
Puerto Rico | 76.6 | 56.1 | 36.6 | 36.6 | ||||
Brazil | - | 17.0 | NM | NM | ||||
Total Americas Region | 2,880.4 | 2,609.6 | 10.4 | 9.8 | ||||
Europe | ||||||||
France | 168.1 | 141.2 | 19.0 | 11.9 | ||||
Switzerland | 161.2 | 141.2 | 14.2 | 9.6 | ||||
Portugal | 120.9 | 99.1 | 22.0 | 14.5 | ||||
Russia | 99.3 | 88.6 | 12.1 | 17.5 | ||||
Italy | 56.0 | 42.5 | 31.7 | 23.9 | ||||
United Kingdom | 51.9 | 56.5 | (8.2) | (15.8) | ||||
Germany | 24.6 | 22.1 | 11.3 | 5.1 | ||||
Ireland | 18.8 | 14.0 | 34.1 | 26.8 | ||||
Other | 49.9 | 38.7 | 29.0 | 21.6 | ||||
Total Europe Region | 750.7 | 643.9 | 16.6 | 11.6 | ||||
Total Asia-Pacific Region | 28.3 | 21.1 | 33.9 | 24.9 | ||||
Total Kelly Services, Inc. | $ | 3,659.4 | $ | 3,274.6 | 11.8 | % | 10.3 | % |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
THIRD QUARTER | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
2021 | 2020 | |||||||
SG&A Expenses: | As Reported |
Restructuring(5)
| Adjusted | Adjusted | ||||
Professional & Industrial | $ | 69.4 | $ | - | $ | 69.4 | $ | 65.4 |
Science, Engineering & Technology | 48.4 | - | 48.4 | 31.3 | ||||
Education | 17.0 | - | 17.0 | 11.6 | ||||
Outsourcing & Consulting | 30.7 | - | 30.7 | 25.4 | ||||
International | 34.5 | - | 34.5 | 30.4 | ||||
Corporate | 19.9 | 0.1 | 20.0 | 19.9 | ||||
Total Company | $ | 219.9 | $ | 0.1 | $ | 220.0 | $ | 184.0 |
2021 | 2020 | |||||||
Earnings (loss) from Operations: | As Reported |
Restructuring(5)
| Adjusted | Adjusted | ||||
Professional & Industrial | $ | 7.2 | $ | - | $ | 7.2 | $ | 11.7 |
Science, Engineering & Technology | 19.7 | - | 19.7 | 19.4 | ||||
Education | (7.0) | - | (7.0) | (7.5) | ||||
Outsourcing & Consulting | 6.6 | - | 6.6 | 3.7 | ||||
International | 2.4 | - | 2.4 | (0.4) | ||||
Corporate | (19.9) | (0.1) | (20.0) | (19.9) | ||||
Total Company | $ | 9.0 | $ | (0.1) | $ | 8.9 | $ | 7.0 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
THIRD QUARTER | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
2020 | ||||||||
SG&A Expenses: | As Reported |
Customer Dispute(4)
|
Restructuring(5)
| Adjusted | ||||
Professional & Industrial | $ | 65.3 | $ | - | $ | 0.1 | $ | 65.4 |
Science, Engineering & Technology | 31.3 | - | - | 31.3 | ||||
Education | 11.6 | - | - | 11.6 | ||||
Outsourcing & Consulting | 25.4 | - | - | 25.4 | ||||
International | 39.9 | (9.5) | - | 30.4 | ||||
Corporate | 19.9 | - | - | 19.9 | ||||
Total Company | $ | 193.4 | $ | (9.5) | $ | 0.1 | $ | 184.0 |
2020 | ||||||||
Earnings (loss) from Operations: | As Reported |
Customer Dispute(4)
|
Restructuring(5)
| Adjusted | ||||
Professional & Industrial | $ | 11.8 | $ | - | $ | (0.1) | $ | 11.7 |
Science, Engineering & Technology | 19.4 | - | - | 19.4 | ||||
Education | (7.5) | - | - | (7.5) | ||||
Outsourcing & Consulting | 3.7 | - | - | 3.7 | ||||
International | (9.9) | 9.5 | - | (0.4) | ||||
Corporate | (19.9) | - | - | (19.9) | ||||
Total Company | $ | (2.4) | $ | 9.5 | $ | (0.1) | $ | 7.0 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
SEPTEMBER YEAR TO DATE | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
2021 | 2020 | |||||||
SG&A Expenses: | As Reported |
Restructuring(5)
| Adjusted | Adjusted | ||||
Professional & Industrial | $ | 207.8 | $ | - | $ | 207.8 | $ | 206.1 |
Science, Engineering & Technology | 131.0 | - | 131.0 | 98.6 | ||||
Education | 46.5 | - | 46.5 | 36.9 | ||||
Outsourcing & Consulting | 89.2 | - | 89.2 | 79.1 | ||||
International | 102.2 | - | 102.2 | 90.8 | ||||
Corporate | 63.2 | 0.1 | 63.3 | 61.6 | ||||
Total Company | $ | 639.9 | $ | 0.1 | $ | 640.0 | $ | 573.1 |
2021 | 2020 | |||||||
Earnings (loss) from Operations: | As Reported |
Restructuring(5)
| Adjusted | Adjusted | ||||
Professional & Industrial | $ | 19.9 | $ | - | $ | 19.9 | $ | 35.0 |
Science, Engineering & Technology | 56.8 | - | 56.8 | 57.4 | ||||
Education | (2.5) | - | (2.5) | (8.1) | ||||
Outsourcing & Consulting | 14.2 | - | 14.2 | 8.0 | ||||
International | 8.1 | - | 8.1 | (0.3) | ||||
Corporate | (63.2) | (0.1) | (63.3) | (61.6) | ||||
Total Company | $ | 33.3 | $ | (0.1) | $ | 33.2 | $ | 30.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
SEPTEMBER YEAR TO DATE | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
2020 | ||||||||
SG&A Expenses: | As Reported |
Customer Dispute(4)
|
Restructuring(5)
| Adjusted | ||||
Professional & Industrial | $ | 210.4 | $ | - | $ | (4.3) | $ | 206.1 |
Science, Engineering & Technology | 99.1 | - | (0.5) | 98.6 | ||||
Education | 37.7 | - | (0.8) | 36.9 | ||||
Outsourcing & Consulting | 79.1 | - | - | 79.1 | ||||
International | 101.4 | (9.5) | (1.1) | 90.8 | ||||
Corporate | 63.3 | - | (1.7) | 61.6 | ||||
Total Company | $ | 591.0 | $ | (9.5) | $ | (8.4) | $ | 573.1 |
2020 | ||||||||||||
Earnings (loss) from Operations: | As Reported |
Goodwill impairment(1)
|
Gain on sale
of assets(3)
|
Customer Dispute(4)
|
Restructuring(5)
| Adjusted | ||||||
Professional & Industrial | $ | 30.7 | $ | - | $ | - | $ | - | $ | 4.3 | $ | 35.0 |
Science, Engineering & Technology | 56.9 | - | - | - | 0.5 | 57.4 | ||||||
Education | (8.9) | - | - | - | 0.8 | (8.1) | ||||||
Outsourcing & Consulting | 8.0 | - | - | - | - | 8.0 | ||||||
International | (10.9) | - | - | 9.5 | 1.1 | (0.3) | ||||||
Corporate | (178.9) | 147.7 | (32.1) | - | 1.7 | (61.6) | ||||||
Total Company | $ | (103.1) | $ | 147.7 | $ | (32.1) | $ | 9.5 | $ | 8.4 | $ | 30.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars except per share data) | ||||||||
Third Quarter | September Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Income tax expense (benefit) | $ | 11.1 | $ | (1.2) | $ | 19.0 | $ | (36.5) |
Taxes on goodwill impairment charge(1)
| - | - | - | 23.0 | ||||
Taxes on investment in Persol Holdings(2)
| (10.9) | (5.2) | (22.0) | 9.6 | ||||
Taxes on gain on sale of assets(3)
| - | - | - | (8.1) | ||||
Taxes on customer dispute(4)
| - | 2.8 | - | 2.8 | ||||
Taxes on restructuring charges(5)
| - | - | - | 2.2 | ||||
Adjusted income tax expense (benefit) | $ | 0.2 | $ | (3.6) | $ | (3.0) | $ | (7.0) |
Third Quarter | September Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net earnings (loss) | $ | 34.8 | $ | 16.7 | $ | 84.4 | $ | (95.4) |
Goodwill impairment charge, net of taxes(1)
| - | - | - | 124.7 | ||||
(Gain) loss on investment in Persol Holdings, net of taxes(2)
| (24.6) | (11.6) | (49.8) | 21.8 | ||||
(Gain) loss on sale of assets, net of taxes(3)
| - | 0.1 | - | (23.9) | ||||
Customer dispute, net of taxes(4)
| - | 6.7 | - | 6.7 | ||||
Restructuring charges, net of taxes(5)
| (0.1) | (0.1) | (0.1) | 6.2 | ||||
Adjusted net earnings | $ | 10.1 | $ | 11.8 | $ | 34.5 | $ | 40.1 |
Third Quarter | September Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Per Share | Per Share | |||||||
Net earnings (loss) | $ | 0.87 | $ | 0.42 | $ | 2.12 | $ | (2.43) |
Goodwill impairment charge, net of taxes(1)
| - | - | - | 3.18 | ||||
(Gain) loss on investment in Persol Holdings, net of taxes(2)
| (0.62) | (0.29) | (1.25) | 0.56 | ||||
Gain on sale of assets, net of taxes(3)
| - | - | - | (0.61) | ||||
Customer dispute, net of taxes(4)
| - | 0.17 | - | 0.17 | ||||
Restructuring charges, net of taxes(5)
| - | - | - | 0.16 | ||||
Adjusted net earnings | $ | 0.25 | $ | 0.29 | $ | 0.86 | $ | 1.02 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Third Quarter | September Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net earnings (loss) | $ | 34.8 | $ | 16.7 | $ | 84.4 | $ | (95.4) |
Other (income) expense, net | 0.3 | 0.7 | 4.0 | (3.6) | ||||
Income tax expense (benefit) | 11.1 | (1.2) | 19.0 | (36.5) | ||||
Depreciation and amortization | 8.4 | 6.2 | 23.2 | 18.2 | ||||
EBITDA | 54.6 | 22.4 | 130.6 | (117.3) | ||||
Equity in net (earnings) loss of affiliate | (1.7) | (1.8) | (2.3) | 1.0 | ||||
Goodwill impairment charge(1)
| - | - | - | 147.7 | ||||
(Gain) loss on investment in Persol Holdings(2)
| (35.5) | (16.8) | (71.8) | 31.4 | ||||
Gain on sale of assets(3)
| - | - | - | (32.1) | ||||
Customer dispute(4)
| - | 9.5 | - | 9.5 | ||||
Restructuring(5)
| (0.1) | (0.1) | (0.1) | 8.4 | ||||
Adjusted EBITDA | $ | 17.3 | $ | 13.2 | $ | 56.4 | $ | 48.6 |
Adjusted EBITDA margin | 1.4 | % | 1.3 | % | 1.5 | % | 1.5 | % |
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Kelly Services Inc. published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 12:48:09 UTC.