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07-08-2025
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Kelly Reports Second-Quarter 2025 Earnings
TROY, Mich., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the second quarter of 2025. Q2 revenue of $1.1 billion, up 4.2% year-over-year reflecting previously disclosed acquisitions, and down 3.3% on an organic basis Q2 operating earnings of $22.2 million; $24.6 million on an adjusted basis, down 12.1% versus the prior year period Q2 adjusted EBITDA of $37.0 million, down 8.7% versus the prior year; adjusted EBITDA margin decreased 40 basis points ('bps') to 3.4% Company expects year-over-year revenue decline of 5% to 7% in Q3 driven by reduced demand for U.S. federal contractors and from certain large customers. Adjusted EBITDA margin expansion of 80 to 90 bps is expected in Q3 and modest year-over-year margin improvement for the full year. 'In the second quarter, Kelly continued to drive growth in more resilient markets, including K-12 staffing in our Education business, telecom and engineering solutions in SET, and payroll process outsourcing in ETM. Across the business, particularly in areas where customers are taking a more measured approach to hiring, we maintained our focus on aligning resource levels with demand,' said Peter Quigley, president and chief executive officer. 'Our results reflect our commitment to staying close to our customers and creating opportunities in the current operating environment. By meeting employers' evolving needs and executing on our efficiency and growth initiatives, we'll continue to deliver near-term results while positioning Kelly for the future.' Financial Results for the thirteen-week period ended June 29, 2025: Revenue of $1.1 billion, a 4.2% increase compared to the corresponding quarter of 2024 resulting primarily from the May 2024 acquisition of Motion Recruitment Partners, LLC ('MRP'). Excluding the impact of the MRP acquisition, revenue was down 3.3% on an organic basis, including approximately 1.4% of revenue decline due to reduced demand for U.S. federal government contractors and growth of 5.6% in the Education segment. Operating earnings of $22.2 million, compared to earnings of $12.2 million reported in the second quarter of 2024. Adjusted earnings1 were $24.6 million in the second quarter of 2025 and $28.1 million in the second quarter of 2024. Adjusted EBITDA1 of $37.0 million, a decrease of 8.7% versus the prior year period. Adjusted EBITDA margin of 3.4%, a decrease of 40 basis points driven primarily by near-term margin pressure in SET and ETM reflecting timing of revenue trends and related expense management actions. Earnings per share were $0.52 compared to earnings per share of $0.12 in the second quarter of 2024. On an adjusted basis1, earnings per share were $0.54 in the second quarter of 2025 compared to $0.71 per share in the corresponding quarter of 2024. The year-over-year decline includes $0.08 of increased net interest expense due to an elevated average cash balance in the prior year quarter and debt incurred in conjunction with the MRP acquisition as well as lower operating earnings. Financial Results for the 26-week period ended June 29, 2025: Revenue of $2.3 billion, a 7.8% increase compared to the corresponding period in 2024 resulting primarily from the May 2024 acquisition of MRP. Excluding the impact of the MRP acquisition, revenue was down 1.6% on an organic basis and includes approximately 1.1% revenue decline due to reduced demand for U.S. federal government contractors and growth of 6.1% in the Education segment. Operating earnings of $33.0 million, compared to earnings of $39.0 million reported over the same period in 2024. Adjusted earnings1 were $46.7 million in the first half of 2025 and $51.2 million in the corresponding period of 2024. Adjusted EBITDA1 of $71.9 million, a decrease of 2.6% versus the prior year period. Adjusted EBITDA margin of 3.2%, a decrease of 30 basis points driven primarily by near-term margin pressure in SET and ETM reflecting timing of revenue trends and related expense management actions. Earnings per share were $0.67 compared to earnings per share of $0.83 in the same period of 2024. On an adjusted basis1, earnings per share were $0.93 for the first half of 2025 compared to $1.26 per share in the corresponding period of 2024 reflecting higher interest expense following the MRP acquisition and lower operating earnings. _________________________________________1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document. Quarterly Cash Dividend: Kelly also reported that on August 6, its board of directors declared a dividend of $0.075 per share. The dividend is payable on September 3, 2025 to stockholders of record as of the close of business on August 20, 2025. In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call at 9 a.m. ET on August 7 to review the financial and operation results from the quarter. The presentation and a link to the live webcast will be accessible through the Company's public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast. Chief Accounting Officer Transition: Kelly also announced that it has appointed Nick Zuhlke as vice president, controller and chief accounting officer, effective August 11, 2025. He succeeds Laura Lockhart, whose planned retirement was previously announced by the Company. Zuhlke brings to Kelly decades of global finance leadership experience with DexKo Global, Plastipak Holdings, and KPMG. Forward-Looking Statements: This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly's financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers' compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business's anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on second parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'target,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. About Kelly® Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was $4.3 billion. Learn more at KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 (UNAUDITED) (In millions of dollars except per share data) % 2025 2024 Change Change Revenue from services $ 1,101.8 $ 1,057.5 $ 44.3 4.2 % Cost of services 876.3 843.8 32.5 3.8 Gross profit 225.5 213.7 11.8 5.5 Selling, general and administrative expenses 207.3 191.5 15.8 8.2 Asset impairment charge — 5.5 (5.5 ) NM (Gain) loss on sale of EMEA staffing operations (4.0 ) 10.0 (14.0 ) (139.3 ) Gain on sale of assets — (5.5 ) 5.5 NM Earnings from operations 22.2 12.2 10.0 81.0 Other income (expense), net (2.3 ) (6.5 ) 4.2 65.0 Earnings before taxes 19.9 5.7 14.2 249.1 Income tax expense 0.9 1.1 (0.2 ) (23.8 ) Net earnings $ 19.0 $ 4.6 $ 14.4 314.7 % Basic earnings per share $ 0.52 $ 0.13 $ 0.39 300.0 % Diluted earnings per share $ 0.52 $ 0.12 $ 0.40 333.3 % STATISTICS: Permanent placement revenue (included in revenue from services) $ 14.8 $ 10.7 $ 4.1 38.7 % Gross profit rate 20.5 % 20.2 % 0.3 pts. Adjusted EBITDA $ 37.0 $ 40.5 $ (3.5 ) Adjusted EBITDA margin 3.4 % 3.8 % (0.4 ) pts. Effective income tax rate 4.2 % 19.4 % (15.2 ) pts. Average number of shares outstanding (millions): Basic 35.2 35.5 Diluted 35.7 35.9 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 26 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 (UNAUDITED) (In millions of dollars except per share data) % 2025 2024 Change Change Revenue from services $ 2,266.7 $ 2,102.6 $ 164.1 7.8 % Cost of services 1,804.7 1,683.2 121.5 7.2 Gross profit 462.0 419.4 42.6 10.2 Selling, general and administrative expenses 433.0 382.0 51.0 13.3 Asset impairment charge — 5.5 (5.5 ) NM Gain on sale of EMEA staffing operations (4.0 ) (1.6 ) (2.4 ) (139.3 ) Gain on sale of assets — (5.5 ) 5.5 NM Earnings from operations 33.0 39.0 (6.0 ) (15.5 ) Gain on forward contract — 1.2 (1.2 ) NM Other income (expense), net (5.5 ) (4.7 ) (0.8 ) (15.8 ) Earnings before taxes 27.5 35.5 (8.0 ) (22.6 ) Income tax expense 2.7 5.1 (2.4 ) (48.0 ) Net earnings $ 24.8 $ 30.4 $ (5.6 ) (18.3 ) % Basic earnings per share $ 0.68 $ 0.84 $ (0.16 ) (19.0 ) % Diluted earnings per share $ 0.67 $ 0.83 $ (0.16 ) (19.3 ) % STATISTICS: Permanent placement revenue (included in revenue from services) $ 26.3 $ 18.7 $ 7.6 40.7 % Gross profit rate 20.4 % 19.9 % 0.5 pts. Adjusted EBITDA $ 71.9 $ 73.8 $ (1.9 ) Adjusted EBITDA margin 3.2 % 3.5 % (0.3 ) pts. Effective income tax rate 9.7 % 14.4 % (4.7 ) pts. Average number of shares outstanding (millions): Basic 35.1 35.5 Diluted 35.6 35.9 KELLY SERVICES, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) (In millions of dollars) We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. Adjusted SG&A expenses and business unit profit (loss) further exclude integration, realignment and restructuring charges. Second Quarter % 2025 2024 Change Enterprise Talent Management Revenue from services $ 520.2 $ 541.2 (3.9 ) % Gross profit 104.0 109.0 (4.6 ) Adjusted SG&A expenses 91.8 93.2 (1.6 ) Integration, realignment and restructuring charges 1.1 0.3 387.4 Total SG&A expenses 92.9 93.5 (0.7 ) Business unit profit (loss) 11.1 15.5 (28.5 ) Adjusted business unit profit (loss) 12.2 15.8 (22.6 ) Gross profit rate 20.0 % 20.1 % (0.1 ) pts. Science, Engineering & Technology Revenue from services $ 317.3 $ 265.7 19.4 % Gross profit 82.4 67.8 21.5 Adjusted SG&A expenses 62.2 48.6 28.1 Integration, realignment and restructuring charges 0.9 0.3 166.9 Total SG&A expenses 63.1 48.9 29.0 Business unit profit (loss) 19.3 18.9 2.1 Adjusted business unit profit (loss) 20.2 19.2 4.9 Gross profit rate 26.0 % 25.5 % 0.5 pts. Education Revenue from services $ 265.3 $ 251.1 5.6 % Gross profit 39.1 36.9 6.1 Adjusted SG&A expenses 25.4 24.2 5.2 Integration, realignment and restructuring charges 0.1 — NM Total SG&A expenses 25.5 24.2 5.6 Business unit profit (loss) 13.6 12.7 7.1 Adjusted business unit profit (loss) 13.7 12.7 7.9 Gross profit rate 14.7 % 14.7 % — SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (UNAUDITED) (In millions of dollars) We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. Adjusted SG&A expenses and business unit profit (loss) further exclude integration, realignment and restructuring charges. June Year-to-Date % 2025 2024 Change Enterprise Talent Management Revenue from services $ 1,054.2 $ 1,065.3 (1.0 ) % Gross profit 212.0 215.2 (1.5 ) Adjusted SG&A expenses 190.3 190.6 (0.2 ) Integration, realignment and restructuring charges 3.8 1.0 296.2 Total SG&A expenses 194.1 191.6 1.3 Business unit profit (loss) 17.9 23.6 (24.0 ) Adjusted business unit profit (loss) 21.7 24.6 (11.4 ) Gross profit rate 20.1 % 20.2 % (0.1 ) pts. Science, Engineering & Technology Revenue from services $ 639.7 $ 497.3 28.6 % Gross profit 164.7 125.2 31.5 Adjusted SG&A expenses 130.0 91.8 41.6 Integration, realignment and restructuring charges 2.0 0.3 NM Total SG&A expenses 132.0 92.1 43.3 Business unit profit (loss) 32.7 33.1 (1.3 ) Adjusted business unit profit (loss) 34.7 33.4 3.6 Gross profit rate 25.7 % 25.2 % 0.5 pts. Education Revenue from services $ 574.3 $ 541.0 6.1 % Gross profit 85.3 79.0 8.1 Adjusted SG&A expenses 52.3 48.2 8.7 Integration, realignment and restructuring charges 0.1 — NM Total SG&A expenses 52.4 48.2 9.0 Business unit profit (loss) 32.9 30.8 6.6 Adjusted business unit profit (loss) 33.0 30.8 7.1 Gross profit rate 14.9 % 14.6 % 0.3 SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In millions of dollars) June 29, 2025 December 29, 2024 June 30, 2024 Current Assets Cash and equivalents $ 18.0 $ 39.0 $ 38.2 Trade accounts receivable, less allowances of $10.8, $8.4, and $7.9 respectively 1,181.1 1,255.5 1,193.9 Prepaid expenses and other current assets 54.0 71.0 78.7 Total current assets 1,253.1 1,365.5 1,310.8 Noncurrent Assets Property and equipment, net 22.8 25.8 26.8 Operating lease right-of-use assets 44.5 47.0 53.1 Deferred taxes 337.3 330.1 302.3 Retirement plan assets 272.1 258.1 245.9 Goodwill 304.1 304.2 372.6 Intangibles, net 241.0 256.3 272.3 Other assets 37.0 45.3 44.4 Total noncurrent assets 1,258.8 1,266.8 1,317.4 Total Assets $ 2,511.9 $ 2,632.3 $ 2,628.2 Current Liabilities Accounts payable and accrued liabilities $ 613.8 $ 613.8 $ 594.8 Operating lease liabilities 12.1 12.3 12.4 Accrued payroll and related taxes 161.6 163.9 168.3 Accrued workers' compensation and other claims 18.8 19.0 18.7 Income and other taxes 20.4 17.5 18.1 Total current liabilities 826.7 826.5 812.3 Noncurrent Liabilities Long-term debt 74.3 239.4 210.4 Operating lease liabilities 47.5 50.9 49.6 Accrued workers' compensation and other claims 33.4 33.8 34.7 Accrued retirement benefits 254.5 239.9 232.6 Other long-term liabilities 9.4 7.2 8.7 Total noncurrent liabilities 419.1 571.2 536.0 Stockholders' Equity Common stock 38.5 38.5 38.5 Treasury stock (55.3 ) (61.4 ) (52.3 ) Paid-in capital 34.0 34.2 29.5 Earnings invested in the business 1,249.5 1,230.2 1,266.7 Accumulated other comprehensive income (loss) (0.6 ) (6.9 ) (2.5 ) Total stockholders' equity 1,266.1 1,234.6 1,279.9 Total Liabilities and Stockholders' Equity $ 2,511.9 $ 2,632.3 $ 2,628.2 STATISTICS: Working Capital $ 426.4 $ 539.0 $ 498.5 Current Ratio 1.5 1.7 1.6 Debt-to-capital % 5.5 % 16.2 % 14.1 % Global Days Sales Outstanding 59 59 57 Year-to-Date Free Cash Flow $ 114.8 $ 15.8 $ 25.5 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE 26 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 (UNAUDITED) (In millions of dollars) 2025 2024 Cash flows from operating activities: Net earnings $ 24.8 $ 30.4 Adjustments to reconcile net earnings to net cash from operating activities: Asset impairment charge — 5.5 Depreciation and amortization 21.5 17.6 Operating lease asset amortization 5.4 4.6 Provision for credit losses and sales allowances 3.2 (0.2 ) Stock-based compensation 7.2 5.2 Gain on sale of EMEA staffing operations (4.0 ) (1.6 ) Gain on sale of assets — (5.5 ) Gain on forward contract — (1.2 ) Other, net (0.1 ) (1.1 ) Changes in operating assets and liabilities, net of acquisition 61.3 (21.5 ) Net cash from operating activities 119.3 32.2 Cash flows from investing activities: Capital expenditures (4.5 ) (6.7 ) Proceeds from sale of EMEA staffing operations, net of cash disposed 21.8 77.1 Proceeds from sale of PersolKelly investment 6.4 — Proceeds from sale of assets — 4.4 Acquisition of company, net of cash received — (427.4 ) Payment for settlement of forward contract — (2.4 ) Other investing activities 1.0 1.9 Net cash from (used in) investing activities 24.7 (353.1 ) Cash flows from financing activities: Proceeds from long-term debt 774.4 378.6 Payments on long-term debt (939.5 ) (168.2 ) Dividend payments (5.5 ) (5.4 ) Payments of tax withholding for stock awards (1.9 ) (2.1 ) Other financing activities (0.2 ) (1.3 ) Net cash used in (from) financing activities (172.7 ) 201.6 Effect of exchange rates on cash, cash equivalents and restricted cash 7.6 (2.7 ) Net change in cash, cash equivalents and restricted cash (21.1 ) (122.0 ) Cash, cash equivalents and restricted cash at beginning of period 45.6 167.6 Cash, cash equivalents and restricted cash at end of period $ 24.5 $ 45.6 KELLY SERVICES, INC. AND SUBSIDIARIES REVENUE FROM SERVICES BY SERVICE TYPE (UNAUDITED) (In millions of dollars) Second Quarter 2025 StaffingServices Outcome-basedServices TalentSolutions PermanentPlacement Total Enterprise Talent Management $ 269.6 $ 120.8 $ 126.9 $ 2.9 $ 520.2 Science, Engineering & Technology 200.7 107.3 — 9.3 317.3 Education 262.7 — — 2.6 265.3 Total Segment Revenue $ 733.0 $ 228.1 $ 126.9 $ 14.8 $ 1,102.8 Intersegment (1.0 ) Total Revenue from Services $ 1,101.8 Second Quarter 2024 StaffingServices Outcome-basedServices TalentSolutions PermanentPlacement Total Enterprise Talent Management $ 292.2 $ 128.8 $ 117.9 $ 2.3 $ 541.2 Science, Engineering & Technology 164.7 95.2 — 5.8 265.7 Education 248.5 — — 2.6 251.1 Total Segment Revenue $ 705.4 $ 224.0 $ 117.9 $ 10.7 $ 1,058.0 Intersegment (0.5 ) Total Revenue from Services $ 1,057.5 KELLY SERVICES, INC. AND SUBSIDIARIES REVENUE FROM SERVICES BY SERVICE TYPE (continued) (UNAUDITED) (In millions of dollars) June Year-to-Date 2025 StaffingServices Outcome-basedServices TalentSolutions PermanentPlacement Total Enterprise Talent Management $ 550.3 $ 254.0 $ 244.7 $ 5.2 $ 1,054.2 Science, Engineering & Technology 405.6 216.7 — 17.4 639.7 Education 570.6 — — 3.7 574.3 Total Segment Revenue $ 1,526.5 $ 470.7 $ 244.7 $ 26.3 $ 2,268.2 Intersegment (1.5 ) Total Revenue from Services $ 2,266.7 June Year-to-Date 2024 StaffingServices Outcome-basedServices TalentSolutions PermanentPlacement Total Enterprise Talent Management $ 578.1 $ 259.6 $ 222.6 $ 5.0 $ 1,065.3 Science, Engineering & Technology 304.7 182.6 — 10.0 497.3 Education 537.3 — — 3.7 541.0 Total Segment Revenue $ 1,420.1 $ 442.2 $ 222.6 $ 18.7 $ 2,103.6 Intersegment (1.0 ) Total Revenue from Services $ 2,102.6 KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars) Second Quarter June Year-to-Date SG&A Expenses: 2025 2024 2025 2024 As reported $ 207.3 $ 191.5 $ 433.0 $ 382.0 Integration and realignment costs(1) (6.1 ) — (16.8 ) — Transaction costs(2) (0.1 ) (1.6 ) (0.4 ) (7.2 ) Executive transition costs(3) (0.2 ) — (0.5 ) — Restructuring(6) — (4.3 ) — (6.6 ) Adjusted SG&A expenses $ 200.9 $ 185.6 $ 415.3 $ 368.2 Second Quarter June Year-to-Date Earnings from Operations: 2025 2024 2025 2024 As reported $ 22.2 $ 12.2 $ 33.0 $ 39.0 Integration and realignment costs(1) 6.1 — 16.8 — Transaction costs(2) 0.1 1.6 0.4 7.2 Executive transition costs(3) 0.2 — 0.5 — (Gain) loss on sale of EMEA staffing operations(4) (4.0 ) 10.0 (4.0 ) (1.6 ) Restructuring(6) — 4.3 — 6.6 Gain on sale of assets(7) — (5.5 ) — (5.5 ) Asset impairment charge(8) — 5.5 — 5.5 Adjusted earnings from operations $ 24.6 $ 28.1 $ 46.7 $ 51.2 KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars except per share data) Second Quarter June Year-to-Date 2025 2024 2025 2024 Income tax expense $ 0.9 $ 1.1 $ 2.7 $ 5.1 Taxes on integration and realignment costs(1) 1.6 — 4.3 — Taxes on transaction costs(2) — 1.1 0.1 2.3 Taxes on executive transition costs(3) — — 0.1 — Taxes on (gain) loss on sale of EMEA staffing operations(4) — — — (1.2 ) Taxes on restructuring charges(6) — 1.1 — 1.7 Taxes on gain on sale of assets(7) — (1.4 ) — (1.4 ) Taxes on asset impairment charge(8) — 1.4 — 1.4 Adjusted income tax expense $ 2.5 $ 3.3 $ 7.2 $ 7.9 Second Quarter June Year-to-Date 2025 2024 2025 2024 Net earnings $ 19.0 $ 4.6 $ 24.8 $ 30.4 Integration and realignment costs, net of taxes(1) 4.5 — 12.5 — Transaction costs, net of taxes(2) 0.1 8.3 0.4 12.7 Executive transition costs, net of taxes(3) 0.2 — 0.4 — (Gain) loss on sale of EMEA staffing operations, net of taxes(4) (4.0 ) 10.0 (4.0 ) (0.4 ) Gain on forward contract, net of taxes(5) — — — (1.2 ) Restructuring charges, net of taxes(6) — 3.2 — 4.9 Gain on sale of assets, net of taxes(7) — (4.1 ) — (4.1 ) Asset impairment charge, net of taxes(8) — 4.1 — 4.1 Adjusted net earnings $ 19.8 $ 26.1 $ 34.1 $ 46.4 Second Quarter June Year-to-Date 2025 2024 2025 2024 Per Share Per Share Net earnings $ 0.52 $ 0.12 $ 0.67 $ 0.83 Integration and realignment costs, net of taxes(1) 0.12 — 0.34 — Transaction costs, net of taxes(2) — 0.23 0.01 0.35 Executive transition costs, net of taxes(3) — — 0.01 — (Gain) loss on sale of EMEA staffing operations, net of taxes(4) (0.11 ) 0.27 (0.11 ) (0.01 ) Gain on forward contract, net of taxes(5) — — — (0.03 ) Restructuring charges, net of taxes(6) — 0.09 — 0.13 Gain on sale of assets, net of taxes(7) — (0.11 ) — (0.11 ) Asset impairment charge, net of taxes(8) — 0.11 — 0.11 Adjusted net earnings $ 0.54 $ 0.71 $ 0.93 $ 1.26 Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year. KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars) Total Adjusted EBITDA: Second Quarter June Year-to-Date 2025 2024 2025 2024 Net earnings $ 19.0 $ 4.6 $ 24.8 $ 30.4 Other (income) expense, net 2.3 (1.4 ) 5.4 (3.2 ) Income tax expense (benefit) 0.9 1.1 2.7 5.1 Depreciation and amortization 12.5 12.5 25.3 22.7 EBITDA 34.7 16.8 58.2 55.0 Integration and realignment costs(1) 6.0 — 16.7 — Transaction costs(2) 0.1 9.4 0.5 15.0 Executive transition costs(3) 0.2 — 0.5 — (Gain) loss on sale of EMEA staffing operations(4) (4.0 ) 10.0 (4.0 ) (1.6 ) Gain on forward contract(5) — — — (1.2 ) Restructuring(6) — 4.3 — 6.6 Gain on sale of assets(7) — (5.5 ) — (5.5 ) Asset impairment charge(8) — 5.5 — 5.5 Adjusted EBITDA $ 37.0 $ 40.5 $ 71.9 $ 73.8 Adjusted EBITDA margin 3.4 % 3.8 % 3.2 % 3.5 % Business Unit Adjusted EBITDA: Second Quarter 2025 Enterprise Talent Management Science, Engineering & Technology Education Business unit profit (loss) $ 11.1 $ 19.3 $ 13.6 Integration and realignment costs(1) 1.1 0.9 0.1 Adjusted EBITDA $ 12.2 $ 20.2 $ 13.7 Adjusted EBITDA margin 2.3 % 6.4 % 5.2 % Second Quarter 2024 EnterpriseTalentManagement Science,Engineering &Technology Education Business unit profit (loss) $ 15.5 $ 18.9 $ 12.7 Restructuring(6) 0.3 0.3 — Adjusted EBITDA $ 15.8 $ 19.2 $ 12.7 Adjusted EBITDA margin 2.9 % 7.2 % 5.1 %KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars) Business Unit Adjusted EBITDA (continued): June Year-to-Date 2025 EnterpriseTalentManagement Science,Engineering &Technology Education Business unit profit (loss) $ 17.9 $ 32.7 $ 32.9 Integration and realignment costs(1) 3.8 2.0 0.1 Adjusted EBITDA $ 21.7 $ 34.7 $ 33.0 Adjusted EBITDA margin 2.1 % 5.4 % 5.7 % June Year-to-Date 2024 EnterpriseTalentManagement Science,Engineering &Technology Education Business unit profit (loss) $ 23.6 $ 33.1 $ 30.8 Restructuring(6) 1.0 0.3 — Adjusted EBITDA $ 24.6 $ 33.4 $ 30.8 Adjusted EBITDA margin 2.3 % 6.7 % 5.7 %Free Cash Flow: June Year-to-Date 2025 2024 Net cash from operating activities $ 119.3 $ 32.2 Capital expenditures (4.5 ) (6.7 ) Free Cash Flow $ 114.8 $ 25.5 KELLY SERVICES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES(UNAUDITED) Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2025 integration and realignment costs, the 2025 and 2024 transaction costs, the 2025 executive transition costs, the 2025 and 2024 gains and losses on the sale of our EMEA staffing operations, the 2024 gain on forward contract, and the 2024 restructuring charges are useful to understand the Company's fiscal 2025 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance. Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. (1) Integration and realignment costs in the second quarter and June year-to-date 2025 reflect various initiatives aimed at integrating MRP and other prior acquisitions, consolidating operating segments, and further aligning processes and technology across the Company. Included in the total integration and realignment costs is $0.1 million of accelerated amortization included within depreciation and amortization. The costs incurred associated with these initiatives are summarized in the table below (in millions of dollars): Second Quarter 2025 June Year-to-Date 2025 IT-related charges $ 1.7 $ 7.0 Severance 2.1 6.5 Fees and other costs 2.3 3.3 Total integration and realignment costs $ 6.1 $ 16.8 (2) Transaction costs in 2025 and 2024 include costs incurred directly related to the sale of the EMEA staffing operations, which includes employee termination costs and transition costs. Transaction costs in 2024 also includes $7.9 million of transaction costs related to the acquisition of MRP in the second quarter of 2024. (3) Executive transition costs represent non-recurring expenses associated with our CEO transition in 2025. (4) (Gain) loss on sale of EMEA staffing operations represents the gains and losses recorded in each period as a result of the sale in January 2024. The gain on the sale in the second quarter of 2025 is the result of the Company receiving the remaining proceeds from working capital and other adjustments, which exceeded the recorded receivable. (5) Gain on forward contract represents the gain recognized in the first quarter of 2024 for the settlement of the foreign currency forward contract relating to the sale of the EMEA staffing operations. KELLY SERVICES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES(UNAUDITED) (6) Restructuring charges in 2024 represent a comprehensive transformation initiative that started in 2023 to further streamline the Company's operating model to enhance organizational efficiency and effectiveness. In the second quarter of 2024, these restructuring charges included $1.9 million of costs to execute the transformation and $2.4 million of severance. For June year-to-date 2024, these restructuring charges included $3.5 million of severance and $3.1 million of costs to execute the transformation. (7) Gain on sale of assets represents the sale of Ayers Group in the second quarter of 2024. (8) Asset impairment charge in the second quarter of 2024 was for certain right-of-use assets related to our leased headquarters facility reflects adjustments to how we are utilizing the building as part of our ongoing transformation in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
Everest Group Names Kelly a Leader and Star Performer in Professional, Industrial, IT and Engineering Staffing
First company to earn both Leader and Star Performer status across all four PEAK Matrix® Assessments TROY, Mich., July 31, 2025 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a global specialty talent solutions provider, is the first company to have been named a Leader and Star Performer on all four Everest Group US Contingent Staffing PEAK Matrix® Assessments. The company achieved this unprecedented level of recognition for its market impact, vision and capability in professional, industrial, IT, and engineering talent and strategic solutions. 'We're incredibly proud to have achieved this 'clean sweep' of Everest Group's 2025 US Contingent Staffing PEAK Matrix® Assessments,' Kelly President and CEO Peter Quigley said. 'Being named a Leader and Star Performer across the board speaks to the impressive growth and quality of our services following the acquisition and integration of Motion Recruitment Partners. Together, we deliver unmatched contingent staffing solutions that enable our clients to acquire talent in any market.' Everest Group's PEAK Matrix® assesses contingent staffing providers in seven categories: vision and strategy, delivery of output-based staffing solutions, learning and upskilling solutions, market impact, technology capabilities, equity and inclusion solutions, and future investments. They are positioned as Leaders, Major Contenders or Aspirants. Star Performers are identified based on year-over-year performance movement on the PEAK Matrix®. In its business and professional assessment, Everest Group noted Kelly has further diversified its industry coverage and talent sourcing capabilities and stressed the company has made significant investments to build its managed services. It also lauded Kelly's technology stack and digital staffing capabilities, such as Kelly Now. Similarly, in its industrial assessment, Everest Group cited Kelly's strong vision for generative AI and analytics and praised its outcome-based delivery via its Skilled Professional Solutions offering. Kelly + Motion Recruitment received Leader and Star Performer status for making significant investments to enhance its IT managed services. Everest Group stressed combining Kelly and Motion Recruitment's resources has enhanced coverage across targeted industry verticals and led to significant market traction. Everest Group said the combined group has demonstrated a strong vision to further expand its geographic coverage. For the second year in a row, Everest Group named Kelly Engineering a Leader and Star Performer. Everest Group highlighted that Kelly Engineering has further diversified its industry coverage and sourcing capabilities for advanced engineering roles, and noted it registered one of the highest organic revenue growth rates. Everest Group stressed that Kelly Engineering has built capabilities in engineering managed services and displays a robust vision to enhance its tech stack with the integration of AI. 'Kelly has been recognized as a Leader and Star Performer in Everest Group's US Contingent Talent and Strategic Solutions PEAK Matrix® 2025 Assessments across IT, Engineering, Business and Professionals, and Industrial segments. Kelly's acquisition of Motion Recruitment Partners, diversified skill and industry portfolios, strong vision for technology-led delivery, and comprehensive service offerings has contributed to its position,' said Priyanka Mitra, Vice President at Everest Group. 'Kelly has showcased strong vision for tech-led delivery through its investments in AI-driven tools and partnerships with intelligent sourcing platforms. Its specialization in high-skill segments, robust upskilling programs, managed services capabilities across the domains, and vision for omnichannel delivery elevated its position from its competitors.' Kelly's contingent staffing recognition follows KellyOCG + Sevenstep being named a Leader and Star Performer on Everest Group's 2025 Recruitment Process Outsourcing Services PEAK Matrix® Assessment – Global earlier this month. About Kelly® Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was $4.3 billion. Learn more at About Everest Group Everest Group is a leading global research firm helping business leaders make confident decisions. Everest Group's PEAK Matrix® assessments provide the analysis and insights enterprises need to make critical selection decisions about global services providers, locations, and products and solutions within various market segments. Likewise, providers of these services, products, and solutions, look to the PEAK Matrix® to gauge and calibrate their offerings against others in the industry or market. Find further details and in-depth content at Disclaimer Licensed extracts taken from Everest Group's PEAK Matrix® Reports, may be used by licensed third parties for use in their own marketing and promotional activities and collateral. Selected extracts from Everest Group's PEAK Matrix® reports do not necessarily provide the full context of our research and analysis. All research and analysis conducted by Everest Group's analysts and included in Everest Group's PEAK Matrix® reports is independent and no organization has paid a fee to be featured or to influence their ranking. To access the complete research and to learn more about our methodology, please visit Everest Group PEAK Matrix® Reports. Media Contact Christian This press release was published by a CLEAR® Verified in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
13-02-2025
- Business
- Associated Press
Kelly Reports Fourth-Quarter and Full-Year 2024 Earnings
TROY, Mich., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced fourth-quarter and full-year 2024 earnings. Q4 revenue of $1.2 billion, down 3.3% year-over-year reflecting the previously disclosed dispositions and acquisitions, and up 4.4% on an organic basis. Full-year revenue of $4.3 billion, down 10.4% as reported and up 0.5% on an organic basis. Q4 operating loss of $56.7 million on $80.8 million non-cash impairment charges; $29.2 million of operating income on an adjusted basis, up 32% versus the prior year period Q4 adjusted EBITDA of $43.5 million, up 34% versus the prior year; adjusted EBITDA margin increased 110 basis points versus the prior year period to 3.7% Full-year operating loss of $15.1 million resulting from non-cash impairment charges; adjusted operating income of $92.1 million; adjusted EBITDA of $143.5 million, up 31% versus the prior year, and adjusted EBITDA margin of 3.3%, an increase of 100 basis points versus the prior year Company expects to deliver incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025 Announces planned retirement of president and chief executive officer Peter Quigley by the end of 2025 'We are pleased with our results in the fourth quarter, during which we drove organic revenue growth that outpaced the market and increased adjusted EBITDA by 34 percent. Our positive performance bookended a year of significant strategic progress on our specialty growth journey as we continued to shift toward higher margin, higher growth markets and solutions,' said Peter Quigley, president and chief executive officer. 'In 2024, we delivered 100 basis points of net margin expansion, unlocked more than $100 million in capital by further streamlining our operating model, and redeployed that capital toward our transformational acquisition of Motion Recruitment Partners. We enter 2025 a more efficient and focused company well positioned to capitalize as demand improves and deliver top- and bottom-line growth.' Financial Results for the thirteen-week period ended December 29, 2024: Revenue of $1.2 billion, a 3.3% decrease compared to the corresponding quarter of 2023 resulting primarily from the sale of the Company's European staffing operations on January 2, 2024, partially offset by the May 2024 acquisition of Motions Recruitment Partners ('MRP'). Excluding the European staffing operations and MRP, revenue was up 4.4% on an organic basis as organic growth initiatives drove market share gains despite broader industry declines. MRP revenue added 9.8% to reported fourth-quarter year-over-year revenue growth. Operating loss of $56.7 million, reflecting $80.8 million in non-cash impairment charges compared to earnings of $7.3 million reported in the fourth quarter of 2023. Adjusted earnings1 were $29.2 million in the fourth quarter of 2024 and $22.1 million in the fourth quarter of 2023. Adjusted EBITDA1 of $43.5 million, an increase of 34% versus the prior year period. Adjusted EBITDA margin of 3.7%, an increase of 110 basis points. Reflects organic improvement of 50 basis points and a 60 basis point impact from the European staffing operations sale. Loss per share was $0.90 compared to earnings per share of $0.31 in the fourth quarter of 2023. On an adjusted basis1, earnings per share were $0.82 in the fourth quarter of 2024 compared to $0.93 per share in the corresponding quarter of 2023. Financial results for the 52-week period ended December 29, 2024: Revenue of $4.3 billion, a decrease of 10.4% compared to the prior year resulting primarily from the sale of the European staffing operations partially offset by the acquisition of MRP. Excluding the impact of the European staffing operations sale and MRP, revenue was up 0.5% on an organic basis. MRP added 5.9% to reported year-over-year revenue growth. Operating loss of $15.1 million, reflecting $86.3 million of non-cash impairment charges compared to earnings of $24.3 million reported in 2023. Adjusted earnings1 were $92.1 million in 2024 and $69.1 million in 2023. Adjusted EBITDA of $143.5 million, an increase of 31% versus the prior year. Adjusted EBITDA1 margin of 3.3%, an increase of 100 basis points. Reflects organic improvement of 50 basis points, a 40 basis point impact from the European staffing sale and 10 basis point improvement from the acquisition of MRP. Loss per share was $0.02 compared to earnings per share of $0.98 in 2023. On an adjusted basis1, earnings per share were $2.34 in 2024 compared to $2.20 per share in 2023. 1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document. Financial Outlook*: First Half 2025: Revenue – total Company first half revenue up approximately 10% due to the benefit of the MRP acquisition, up modestly on an organic basis Total Company revenue growth will be slightly higher in Q1 than in Q2 given the May 31, 2024 MRP transaction closing date GP rate – total Company rate up approximately 80 basis points reflecting the benefit of the MRP acquisition; organic GP rate roughly flat Adjusted SG&A – increase modestly on a quarterly run rate basis relative to Q4 2024, includes impact of payroll tax and performance-based incentive resets Total D&A of approximately $13.5 million per quarter expected Adjusted EBITDA margin – up 10 basis points to approximately 3.6% Tax rate – effective rate in the high teens * Assumes relatively consistent staffing market conditions in the first half of the year Planned Retirement of President and Chief Executive Officer Peter Quigley: Kelly also announced that Peter Quigley has informed Kelly's board of directors of his intention to retire from his role as president and chief executive officer by the end of 2025. Quigley intends to serve in his current role until his successor is appointed and an orderly transition is completed. The compensation and talent management committee of the board, which is responsible for executive development and succession, has initiated a process to identify Quigley's successor and engaged a nationally recognized search firm. The board will consider internal and external candidates with the skills and experience to continue accelerating the Company's progress on its specialty growth journey. The anticipated retirement of Quigley, who will turn 64 in April, follows a successful career that includes 22 years with Kelly. Prior to being named president and chief executive officer in 2019, he served as an officer in key roles including general counsel and chief administrative officer, and president of global staffing. Quigley's leadership and passion for serving customers and talent have been instrumental to Kelly's transformation into a leading global specialty talent solutions provider. Quarterly Cash Dividend and Share Repurchase: Kelly also reported that on February 11, its board of directors declared a dividend of $0.075 per share. The dividend is payable on March 12, 2025, to stockholders of record as of the close of business on February 26, 2025. In addition, Kelly executed share repurchases of $10.0 million during the fourth quarter of 2024 as part of the previously announced, board approved share repurchase program. In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call with financial analysts at 9 a.m. ET on February 13 to review the results from the quarter and answer questions. The presentation and a link to the live webcast will be accessible through the Company's public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast. Forward-Looking Statements This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly's financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers' compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business's anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'target,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. About Kelly® Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was $4.3 billion. Learn more at KLYA-FIN KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 (UNAUDITED) (In millions of dollars except per share data) % CC % 2024 2023 Change Change Change Revenue from services $ 1,191.1 $ 1,232.2 $ (41.1) (3.3) % (3.1) % Cost of services 949.6 994.0 (44.4) (4.5) Gross profit 241.5 238.2 3.3 1.4 1.6 Selling, general and administrative expenses 217.4 230.9 (13.5) (5.9) (5.7) Asset impairment charge 8.0 — 8.0 NM Goodwill impairment charge 72.8 — 72.8 NM Earnings (loss) from operations (56.7) 7.3 (64.0) NM Other income (expense), net 1.1 (2.4) 3.5 NM Earnings (loss) before taxes (55.6) 4.9 (60.5) NM Income tax benefit (23.8) (6.5) (17.3) (263.4) Net earnings (loss) $ (31.8) $ 11.4 $ (43.2) NM % Basic earnings (loss) per share $ (0.90) $ 0.32 $ (1.22) NM % Diluted earnings (loss) per share $ (0.90) $ 0.31 $ (1.21) NM % STATISTICS: Permanent placement income (included in revenue from services) $ 13.3 $ 11.7 $ 1.6 13.3 % 13.6 % Gross profit rate 20.3 % 19.3 % 1.0 pts. Adjusted EBITDA $ 43.5 $ 32.5 $ 11.0 Adjusted EBITDA margin 3.7 % 2.6 % 1.1 pts. Effective income tax rate 42.7 % (134.3) % 177.0 pts. Average number of shares outstanding (millions): Basic 35.5 35.3 Diluted 35.5 35.7 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 52 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 (UNAUDITED) (In millions of dollars except per share data) % CC % 2024 2023 Change Change Change Revenue from services $ 4,331.8 $ 4,835.7 $ (503.9) (10.4) % (10.3) % Cost of services 3,449.2 3,874.3 (425.1) (11.0) Gross profit 882.6 961.4 (78.8) (8.2) (8.1) Selling, general and administrative expenses 818.4 934.7 (116.3) (12.4) (12.4) Asset impairment charge 13.5 2.4 11.1 451.8 Goodwill impairment charge 72.8 — 72.8 NM Gain on sale of EMEA staffing operations (1.6) — (1.6) NM Gain on sale of assets (5.4) — (5.4) NM Earnings (loss) from operations (15.1) 24.3 (39.4) NM Other income (expense), net (6.8) 0.6 (7.4) NM Earnings (loss) before taxes (21.9) 24.9 (46.8) NM Income tax benefit (21.3) (11.5) (9.8) (84.1) Net earnings (loss) $ (0.6) $ 36.4 $ (37.0) NM % Basic earnings (loss) per share $ (0.02) $ 0.99 $ (1.01) NM % Diluted earnings (loss) per share $ (0.02) $ 0.98 $ (1.00) NM % STATISTICS: Permanent placement income (included in revenue from services) $ 45.5 $ 59.5 $ (14.0) (23.6) % (23.5) % Gross profit rate 20.4 % 19.9 % 0.5 pts. Adjusted EBITDA $ 143.5 $ 109.4 $ 34.1 Adjusted EBITDA margin 3.3 % 2.3 % 1.0 pts. Effective income tax rate 97.1 % (46.5) % 143.6 pts. Average number of shares outstanding (millions): Basic 35.5 35.9 Diluted 35.5 36.3 KELLY SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (UNAUDITED) (In millions of dollars) We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. Fourth Quarter 2024 2023 % Change CC % Change Professional & Industrial Revenue from services $ 384.2 $ 368.1 4.4 % 5.2 % Gross profit 68.6 67.3 1.9 3.0 SG&A expenses excluding restructuring charges 57.0 59.6 (4.4) (3.7) Restructuring charges (0.1) (0.6) (89.3) (89.3) Total SG&A expenses 56.9 59.0 (3.5) (2.9) Business unit profit (loss) 11.7 8.3 40.3 Business unit profit (loss) excluding restructuring and impairment 11.6 7.7 49.9 Gross profit rate 17.9 % 18.3 % (0.4) pts. Science, Engineering & Technology Revenue from services $ 396.1 $ 287.3 37.9 % 37.9 % Gross profit 94.8 64.6 47.0 46.9 SG&A expenses excluding restructuring charges 72.7 46.3 57.0 57.2 Restructuring charges — 0.4 (99.7) (99.7) Total SG&A expenses 72.7 46.7 55.8 56.0 Goodwill impairment charge 72.8 — NM Business unit profit (loss) (50.7) 17.9 NM Business unit profit (loss) excluding restructuring and impairment 22.1 18.3 21.4 Gross profit rate 23.9 % 22.5 % 1.4 pts. Education Revenue from services $ 289.2 $ 258.0 12.1 % 12.1 % Gross profit 41.1 37.1 10.7 10.7 Total SG&A expenses 24.7 23.0 6.9 6.9 Business unit profit (loss) 16.4 14.1 17.0 Gross profit rate 14.2 % 14.4 % (0.2) pts. Outsourcing & Consulting Revenue from services $ 122.3 $ 112.3 8.8 % 8.6 % Gross profit 37.0 39.1 (5.4) (5.6) SG&A expenses excluding restructuring charges 34.9 37.8 (7.8) (7.9) Restructuring charges (0.1) 0.7 (109.0) (1.9) Total SG&A expenses 34.8 38.5 (9.4) (9.6) Business unit profit (loss) 2.2 0.6 265.2 Business unit profit (loss) excluding restructuring and impairment 2.1 1.3 68.6 Gross profit rate 30.3 % 34.8 % (4.5) pts. International Revenue from services $ — $ 207.4 (100.0) % (100.0) % Gross profit — 30.1 (100.0) (100.0) SG&A expenses excluding restructuring charges — 30.0 (100.0) (100.0) Restructuring charges — 2.7 (100.0) (100.0) Total SG&A expenses — 32.7 (100.0) (100.0) Business unit profit (loss) — (2.6) (100.0) Business unit profit (loss) excluding restructuring and impairment — 0.1 (100.0) Gross profit rate — % 14.5 % (14.5) pts. KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In millions of dollars) Dec. 29, 2024 Dec. 31, 2023 Current Assets Cash and equivalents $ 39.0 $ 125.8 Trade accounts receivable, less allowances of $8.4 for both years 1,255.5 1,160.6 Prepaid expenses and other current assets 71.0 48.9 Assets held for sale — 291.3 Total current assets 1,365.5 1,626.6 Noncurrent Assets Property and equipment, net 25.8 24.6 Operating lease right-of-use assets 47.0 47.1 Deferred taxes 330.1 321.1 Goodwill, net 304.2 151.1 Intangibles, net 256.3 137.7 Retirement plan assets 258.1 230.3 Other assets 45.3 43.1 Total noncurrent assets 1,266.8 955.0 Total Assets $ 2,632.3 $ 2,581.6 Current Liabilities Accounts payable and accrued liabilities $ 613.8 $ 646.1 Operating lease liabilities 12.3 8.4 Accrued payroll and related taxes 163.9 156.2 Accrued workers' compensation and other claims 19.0 22.1 Income and other taxes 17.5 17.2 Liabilities held for sale — 169.9 Total current liabilities 826.5 1,019.9 Noncurrent Liabilities Long-term debt 239.4 — Operating lease liabilities 50.9 42.9 Accrued workers' compensation and other claims 33.8 40.9 Accrued retirement benefits 239.9 217.4 Other long-term liabilities 7.2 6.8 Total noncurrent liabilities 571.2 308.0 Stockholders' Equity Common stock 38.5 38.5 Treasury stock (61.4) (57.3) Paid-in capital 34.2 30.6 Earnings invested in the business 1,230.2 1,241.7 Accumulated other comprehensive income (loss) (6.9) 0.2 Total stockholders' equity 1,234.6 1,253.7 Total Liabilities and Stockholders' Equity $ 2,632.3 $ 2,581.6 Statistics: Working Capital $ 539.0 $ 606.7 Current Ratio 1.7 1.6 Debt-to-capital % 16.2 % 0.0 % Global Days Sales Outstanding 59 59 Year-to-Date Free Cash Flow $ 15.8 $ 61.4 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE 52 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 (UNAUDITED) (In millions of dollars) 2024 2023 Cash flows from operating activities: Net earnings (loss) $ (0.6) $ 36.4 Adjustments to reconcile net earnings to net cash from operating activities: Asset impairment charge 13.5 2.4 Goodwill impairment charge 72.8 — Deferred income taxes (27.8) (24.9) Depreciation and amortization 40.2 33.9 Operating lease asset amortization 10.7 16.2 Provision for credit losses and sales allowances (0.1) 1.6 Stock-based compensation 11.8 9.7 Gain on sale of equity securities (0.6) (2.0) (Gain) loss on forward contract (1.2) 3.6 Gain on sale of EMEA staffing operations (1.6) — Gain on sale of assets (5.4) — Other, net (7.6) 1.8 Changes in operating assets and liabilities, net of acquisitions (77.2) (2.0) Net cash from operating activities 26.9 76.7 Cash flows from investing activities: Capital expenditures (11.1) (15.3) Proceeds from sale of EMEA staffing operations, net of cash disposed 77.1 — Proceeds from sale of assets 4.3 — Acquisition of companies, net of cash received (431.9) — Other investing activities — 1.2 Net cash used in investing activities (361.6) (14.1) Cash flows from financing activities: Net change in short-term borrowings — (0.7) Proceeds from long-term debt 1,340.2 — Payments on long-term debt (1,100.8) — Financing lease payments — (1.2) Dividend payments (10.9) (11.0) Payments of tax withholding for stock awards (2.5) (1.8) Buyback of common shares — — Purchase of treasury stock (10.0) (42.2) Contingent consideration payments — (2.5) Other financing activities (1.2) (0.2) Net cash from (used in) financing activities 214.8 (59.6) Effect of exchange rates on cash, cash equivalents and restricted cash (2.1) 2.2 Net change in cash, cash equivalents and restricted cash (122.0) 5.2 Cash, cash equivalents and restricted cash at beginning of year 167.6 162.4 Cash, cash equivalents and restricted cash at end of year $ 45.6 $ 167.6 KELLY SERVICES, INC. AND SUBSIDIARIES REVENUE FROM SERVICES (UNAUDITED) (In millions of dollars) Fourth Quarter % CC % 2024 2023 Change Change Americas United States $ 1,075.5 $ 908.7 18.4 % 18.4 % Canada 47.5 47.6 (0.4) 2.1 Puerto Rico 28.3 25.9 9.3 9.3 Mexico 13.7 20.6 (33.6) (23.7) Total Americas Region 1,165.0 1,002.8 16.2 16.5 Europe Switzerland 1.1 58.3 (98.0) (98.0) France 0.3 49.4 (99.5) (99.5) Portugal — 47.1 (100.0) (100.0) Italy — 14.4 (100.0) (100.0) Other 8.8 49.4 (82.2) (82.5) Total Europe Region 10.2 218.6 (95.3) (95.4) Total Asia-Pacific Region 15.9 10.8 47.7 44.4 Total Kelly Services, Inc. $ 1,191.1 $ 1,232.2 (3.3) % (3.1) % KELLY SERVICES, INC. AND SUBSIDIARIES REVENUE FROM SERVICES (UNAUDITED) (In millions of dollars) December Year to Date % CC % 2024 2023 Change Change Americas United States $ 3,876.9 $ 3,555.8 9.0 % 9.0 % Canada 188.6 189.8 (0.7) 0.8 Puerto Rico 108.0 107.0 0.9 0.9 Mexico 60.7 75.7 (19.8) (18.0) Total Americas Region 4,234.2 3,928.3 7.8 7.9 Europe Switzerland 4.0 224.2 (98.2) (98.2) France 0.4 194.4 (99.8) (99.8) Portugal — 189.4 (100.0) (100.0) Italy — 63.9 (100.0) (100.0) Other 37.5 191.8 (80.5) (80.8) Total Europe Region 41.9 863.7 (95.1) (95.2) Total Asia-Pacific Region 55.7 43.7 27.6 27.8 Total Kelly Services, Inc. $ 4,331.8 $ 4,835.7 (10.4) % (10.3) % KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES FOURTH QUARTER (UNAUDITED) (In millions of dollars) Fourth Quarter December Year to Date SG&A Expenses: 2024 2023 2024 2023 As reported $ 217.4 $ 230.9 $ 818.4 $ 934.7 Transaction adjustments (costs)(6) 0.8 (6.9) (9.5) (6.9) Restructuring(7) 0.3 (7.9) (6.1) (35.5) Integration costs(3) (3.9) — (10.0) — Executive transition costs(4) (2.3) — (2.3) — Adjusted SG&A expenses $ 212.3 $ 216.1 $ 790.5 $ 892.3 Fourth Quarter December Year to Date Earnings from Operations: 2024 2023 2024 2023 As reported $ (56.7) $ 7.3 $ (15.1) $ 24.3 Goodwill impairment charge(1) 72.8 — 72.8 — Asset impairment charge(2) 8.0 — 13.5 2.4 Integration costs(3) 3.9 — 10.0 — Executive transition costs(4) 2.3 — 2.3 — Transaction (adjustments) costs(6) (0.8) 6.9 9.5 6.9 Restructuring(7) (0.3) 7.9 6.1 35.5 Gain on sale of assets(8) — — (5.4) — Gain on sale of EMEA staffing operations(10) — — (1.6) — Adjusted earnings from operations $ 29.2 $ 22.1 $ 92.1 $ 69.1 Fourth Quarter December Year to Date 2024 2023 2024 2023 Income tax expense (benefit) $ (23.8) $ (6.5) $ (21.3) $ (11.5) Taxes on goodwill impairment charge(1) 18.4 — 18.4 — Taxes on asset impairment charge(2) 2.0 — 3.4 0.6 Taxes on integration costs(3) 1.0 — 2.6 — Taxes on executive transition costs(4) 0.6 — 0.6 — Taxes on gain on equity securities(5) (0.8) — (0.8) — Taxes on transaction costs(6) 0.6 0.5 3.7 0.5 Taxes on restructuring(7) (0.1) 2.0 1.5 8.9 Taxes on gain on sale of assets(8) — — (1.4) — Taxes on loss on forward contract(9) — 0.9 — 0.9 Taxes on gain on sale of EMEA staffing operations(10) — — (1.2) — Tax adjustments on EMEA staffing transaction(11) — (7.7) — (7.7) Adjusted income tax expense (benefit) $ (2.1) $ (10.8) $ 5.5 $ (8.3) Fourth Quarter December Year to Date 2024 2023 2024 2023 Net earnings (loss) $ (31.8) $ 11.4 $ (0.6) $ 36.4 Goodwill impairment charge, net of taxes(1) 54.4 — 54.4 — Asset impairment charge, net of taxes(2) 6.0 — 10.1 1.8 Integration costs, net of taxes(3) 2.9 — 7.4 $ — Executive transition costs, net of taxes(4) 1.7 — 1.7 $ — Gain on equity securities, net of taxes(5) (3.0) — (3.0) — Transaction (adjustments) costs, net of taxes(6) (0.9) 6.4 14.2 6.4 Restructuring, net of taxes(7) (0.2) 5.9 4.6 26.6 Gain on sale of assets, net of taxes(8) — — (4.0) — (Gain) loss on forward contract, net of taxes(9) — 2.7 (1.2) 2.7 Gain on sale of EMEA staffing operations, net of taxes(10) — — (0.4) — Tax adjustments on EMEA staffing transaction(11) — 7.7 — 7.7 Adjusted net earnings $ 29.1 $ 34.1 $ 83.2 $ 81.6 Fourth Quarter December Year to Date 2024 2023 2024 2023 Per Share Per Share Net earnings (loss) $ (0.90) $ 0.31 $ (0.02) $ 0.98 Goodwill impairment charge, net of taxes(1) 1.53 — 1.53 — Asset impairment charge, net of taxes(2) 0.17 — 0.28 0.05 Integration costs, net of taxes(3) 0.08 — 0.21 — Executive transition costs, net of taxes(4) 0.05 — 0.05 — Gain on equity securities, net of taxes(5) (0.08) — (0.08) — Transaction (adjustments) costs, net of taxes(6) (0.02) 0.18 0.40 0.17 Restructuring, net of taxes(7) (0.01) 0.16 0.13 0.72 Gain on sale of assets, net of taxes(8) — — (0.11) — (Gain) loss on forward contract, net of taxes(9) — 0.07 (0.03) 0.07 Gain on sale of EMEA staffing operations, net of taxes(10) — — (0.01) — Tax adjustments on EMEA staffing transaction(11) — 0.21 — 0.21 Adjusted net earnings $ 0.82 $ 0.93 $ 2.34 $ 2.20 Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year. KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars) Adjusted EBITDA: Fourth Quarter December Year to Date 2024 2023 2024 2023 Net earnings (loss) $ (31.8) $ 11.4 $ (0.6) $ 36.4 Other (income) expense, net 2.2 (1.2) 3.3 (4.2) Income tax expense (benefit) (23.8) (6.5) (21.3) (11.5) Depreciation and amortization 14.3 10.4 51.5 40.1 Goodwill impairment charge(1) 72.8 — 72.8 — Asset impairment charge(2) 8.0 — 13.5 2.4 Integration costs(3) 3.9 — 10.0 — Executive transition costs(4) 2.3 — 2.3 — Gain on equity securities(5) (3.8) — (3.8) — Transaction (adjustments) costs(6) (0.3) 6.9 17.9 6.9 Restructuring(7) (0.3) 7.9 6.1 35.5 Gain on sale of assets(8) — — (5.4) — Gain on sale of EMEA staffing operations(10) — — (1.6) — (Gain) loss on forward contract(9) — 3.6 (1.2) 3.6 Other, net — — — 0.2 Adjusted EBITDA $ 43.5 $ 32.5 $ 143.5 $ 109.4 Adjusted EBITDA margin 3.7 % 2.6 % 3.3 % 2.3 % KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In millions of dollars) Business Unit Adjusted EBITDA: Fourth Quarter 2024 Professional & Industrial Science, Engineering & Technology Education Outsourcing & Consulting International Business unit profit (loss) $ 11.7 $ (50.7) $ 16.4 $ 2.2 $ — Goodwill impairment charge(1) — 72.8 — — — Integration costs(3) — 0.2 — — — Restructuring(7) (0.1) — — (0.1) — Adjusted EBITDA $ 11.6 $ 22.3 $ 16.4 $ 2.1 $ — Adjusted EBITDA margin 3.0 % 5.6 % 5.7 % 1.7 % — % Fourth Quarter 2023 Professional & Industrial Science, Engineering & Technology Education Outsourcing & Consulting International Business unit profit (loss) $ 8.3 $ 17.9 $ 14.1 $ 0.6 $ (2.6) Transaction costs(6) — 0.4 — — 2.7 Restructuring(7) (0.6) — — 0.7 — Adjusted EBITDA $ 7.7 $ 18.3 $ 14.1 $ 1.3 $ 0.1 Adjusted EBITDA margin 2.1 % 6.4 % 5.5 % 1.1 % — % December Year-to-Date 2024 Professional & Industrial Science, Engineering & Technology Education Outsourcing & Consulting International Business unit profit (loss) $ 34.7 $ 17.0 $ 43.9 $ 5.7 $ — Goodwill impairment charge(1) — 72.8 — — — Restructuring(7) 0.3 0.3 — 0.4 — Integration costs(3) — 0.2 — — — Adjusted EBITDA $ 35.0 $ 90.3 $ 43.9 $ 6.1 $ — Adjusted EBITDA margin 2.4 % 6.3 % 4.5 % 1.3 % — % December Year-to-Date 2023 Professional & Industrial Science, Engineering & Technology Education Outsourcing & Consulting International Business unit profit (loss) $ 16.0 $ 75.0 $ 36.3 $ 2.2 $ (1.9) Transaction costs(6) — 0.4 — — 2.7 Asset impairment charge(2) 0.3 0.1 — 2.0 — Restructuring(7) 6.7 1.2 1.0 3.0 0.6 Adjusted EBITDA $ 23.0 $ 76.7 $ 37.3 $ 7.2 $ 1.4 Adjusted EBITDA margin 1.5 % 6.4 % 4.4 % 1.6 % 0.2 % December Year to Date Free Cash Flow: 2024 2023 Net cash from operating activities $ 26.9 $ 76.7 Capital expenditures (11.1) (15.3) Free Cash Flow $ 15.8 $ 61.4 KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2024 goodwill impairment charge, the 2024 asset impairment charges, the 2024 integration costs, the 2024 executive transition costs, the 2024 gain on equity securities, the 2024 transaction costs, the 2024 restructuring charges, the 2024 gain on sale of assets, the 2024 gain on forward contract, the 2024 gain on the sale of our EMEA staffing operations, the 2023 restructuring charges, the 2023 transaction costs, the 2023 loss on forward contract, the 2023 asset impairment charge and the 2023 tax adjustments related to the sale of our EMEA staffing operations are useful to understand the Company's fiscal 2024 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance. Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (Adjusted EBITDA divided by revenue from services) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. (1) Goodwill impairment charge in 2024 is driven by changes in market conditions and the result of the Company's annual impairment test related to Softworld. (2) Asset impairment charge in 2024 for certain right-of-use assets related to our leased headquarters facility reflects adjustments to how we are utilizing the building as part of our ongoing transformation efforts. Asset impairment charge in 2023 represents the impairment of right-of-use assets related to an unoccupied existing office space lease. (3) Integration costs in 2024 reflect various initiatives aimed at both integrating the MRP acquisition and further aligning processes and technology across the Company. (4) Executive transition costs represent non-recurring expenses associated with our CFO transition in the fourth quarter of 2024. (5) Gain on equity securities includes a $0.6 million realized gain from the partial sale of our securities and a $3.2 million unrealized gain from the mark-to-market adjustment on our remaining shares in 2024. (6) Transaction costs in 2024 includes employee termination costs and transition costs related to the sale of the EMEA staffing operations, costs and adjustments related to the acquisition of MRP and an adjustment to the indemnification related to our former Brazil operations. Costs related to the sale of the EMEA staffing operations were $3.1 million in the fourth quarter of 2024 and $12.0 million for the year ended 2024. Transaction adjustments related to the acquisitions of MRP and CTC were a gain of $2.7 million in the fourth quarter of 2024 reflecting a $3.4 million write-off of the MRP earnout liability, net of transaction costs of $0.7 million. Transaction costs related to the acquisitions were $6.6 million for the year ended 2024, net of the $3.4 million earnout liability write-off. In the fourth quarter of 2024, there was a $0.7 million reduction in the indemnification liability related to the sale of our Brazil operations in 2020. Transaction costs in 2023, which included employee termination costs, were related to the 2024 sale of the EMEA staffing operations. (7) Restructuring charges in the first six months of 2024 represent a continuation of the comprehensive transformation initiative that started in the second quarter of 2023 to further streamline the Company's operating model to enhance organizational efficiency and effectiveness. There was a $0.3 million adjustment to the restructuring charges in the fourth quarter of 2024 and the restructuring charges for the year ended 2024 include $3.0 million of severance and $3.1 million of costs to execute the transformation. Restructuring charges in 2023 relate to a comprehensive transformation initiative that includes actions that will further streamline the Company's operating model to enhance organizational efficiency and effectiveness. These restructuring charges include $17.7 million of costs to execute the transformation, $11.6 million of severance, and $0.5 million of lease termination expenses. Additionally, restructuring charges of $5.7 million in the first quarter of 2023 represent $4.6 million of severance costs and $1.1 million of lease and other terminations as a result of management undertaking actions to further our cost management efforts in response to the current demand levels and reflects a repositioning of our P&I staffing business to better capitalize on opportunities in local markets. (8) Gain on sale of assets represents the sale of Ayers Group in the second quarter of 2024. (9) Gain on forward contract in 2024 represents the settlement of the foreign currency forward contract in January 2024 relating to the sale of our EMEA staffing operations. Loss on forward contract in 2023 represents the unrealized mark-to-market losses on the foreign currency forward contract the Company entered into in the fourth quarter of 2023 to mitigate the exchange rate risk associated with the future cash proceeds for the sale of the EMEA staffing operations. (10) Gain on sale of EMEA staffing operations represents the gain as a result of the sale in January 2024. (11) Tax adjustments in 2023, related to the January 2024 sale of the EMEA staffing operations, include a $19.1 million valuation allowance related to deferred tax assets in the U.K., a $15.0 million tax benefit for the outside basis difference on the sale of the EMEA staffing operations, and a $3.6 million tax expense adjustment for the tax impact of legal entity restructuring of European subsidiaries.
