08/12/2021 | Press release | Distributed by Public on 08/12/2021 06:39
MEDIA CONTACT: | ANALYST CONTACT: |
Jane Stehney | James Polehna |
(248) 765-6864 | (248) 244-4586 |
[email protected] | [email protected] |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||
FOR THE 13 WEEKS ENDED JULY 4, 2021 AND JUNE 28, 2020 | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars except per share data) | ||||||||||
% | CC % | |||||||||
2021 | 2020 | Change | Change | Change | ||||||
Revenue from services | $ | 1,258.1 | $ | 975.3 | $ | 282.8 | 29.0 | % | 26.2 | % |
Cost of services | 1,027.1 | 786.1 | 241.0 | 30.7 | ||||||
Gross profit | 231.0 | 189.2 | 41.8 | 22.1 | 19.6 | |||||
Selling, general and administrative expenses | 217.3 | 178.1 | 39.2 | 21.9 | 19.8 | |||||
Earnings (loss) from operations | 13.7 | 11.1 | 2.6 | 24.1 | ||||||
Gain (loss) on investment in Persol Holdings | 6.3 | 29.6 | (23.3) | (78.8) | ||||||
Other income (expense), net | (0.3) | 2.6 | (2.9) | (109.0) | ||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 19.7 | 43.3 | (23.6) | (54.4) | ||||||
Income tax expense (benefit) | (2.6) | 0.9 | (3.5) | (406.2) | ||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | 22.3 | 42.4 | (20.1) | (47.2) | ||||||
Equity in net earnings (loss) of affiliate | 1.7 | (1.3) | 3.0 | NM | ||||||
Net earnings (loss) | $ | 24.0 | $ | 41.1 | $ | (17.1) | (41.6) | |||
Basic earnings (loss) per share | $ | 0.60 | $ | 1.04 | $ | (0.44) | (42.3) | |||
Diluted earnings (loss) per share | $ | 0.60 | $ | 1.04 | $ | (0.44) | (42.3) | |||
STATISTICS: | ||||||||||
Permanent placement revenue (included in revenue from services) | $ | 18.6 | $ | 7.6 | $ | 11.0 | 146.1 | % | 139.8 | % |
Gross profit rate | 18.4 | % | 19.4 | % | (1.0) | pts. | ||||
Conversion rate | 5.9 | % | 5.8 | % | 0.1 | pts. | ||||
Adjusted EBITDA | $ | 22.2 | $ | 16.9 | $ | 5.3 | ||||
Adjusted EBITDA margin | 1.8 | % | 1.7 | % | 0.1 | pts. | ||||
Effective income tax rate | (13.5) | % | 2.0 | % | (15.5) | 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 26 WEEKS ENDED JULY 4, 2021 AND JUNE 28, 2020 | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars except per share data) | ||||||||||
% | CC % | |||||||||
2021 | 2020 | Change | Change | Change | ||||||
Revenue from services | $ | 2,464.0 | $ | 2,236.4 | $ | 227.6 | 10.2 | % | 8.3 | % |
Cost of services | 2,019.7 | 1,823.9 | 195.8 | 10.7 | ||||||
Gross profit | 444.3 | 412.5 | 31.8 | 7.7 | 5.9 | |||||
Selling, general and administrative expenses | 420.0 | 397.6 | 22.4 | 5.6 | 4.0 | |||||
Goodwill impairment charge | - | 147.7 | (147.7) | NM | ||||||
Gain on sale of assets | - | (32.1) | 32.1 | NM | ||||||
Earnings (loss) from operations | 24.3 | (100.7) | 125.0 | NM | ||||||
Gain (loss) on investment in Persol Holdings | 36.3 | (48.2) | 84.5 | NM | ||||||
Other income (expense), net | (3.7) | 4.3 | (8.0) | (185.8) | ||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 56.9 | (144.6) | 201.5 | NM | ||||||
Income tax expense (benefit) | 7.9 | (35.3) | 43.2 | 122.2 | ||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | 49.0 | (109.3) | 158.3 | NM | ||||||
Equity in net earnings (loss) of affiliate | 0.6 | (2.8) | 3.4 | NM | ||||||
Net earnings (loss) | $ | 49.6 | $ | (112.1) | $ | 161.7 | NM | |||
Basic earnings (loss) per share | $ | 1.25 | $ | (2.86) | $ | 4.11 | NM | |||
Diluted earnings (loss) per share | $ | 1.25 | $ | (2.86) | $ | 4.11 | NM | |||
STATISTICS: | ||||||||||
Permanent placement revenue (included in revenue from services) | $ | 34.6 | $ | 19.8 | $ | 14.8 | 74.1 | % | 70.0 | % |
Gross profit rate | 18.0 | % | 18.4 | % | (0.4) | pts. | ||||
Conversion rate | 5.5 | % | (24.4) | % | 29.9 | pts. | ||||
Adjusted EBITDA | $ | 39.1 | $ | 35.4 | $ | 3.7 | ||||
Adjusted EBITDA margin | 1.6 | % | 1.6 | % | - | pts. | ||||
Effective income tax rate | 13.8 | % | 24.5 | % | (10.7) | pts. | ||||
Average number of shares outstanding (millions): | ||||||||||
Basic | 39.4 | 39.2 | ||||||||
Diluted | 39.5 | 39.2 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Second Quarter | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Professional & Industrial | ||||||||
Revenue from services | $ | 466.5 | $ | 406.4 | 14.8 | % | 14.0 | % |
Gross profit | 75.2 | 78.9 | (4.7) | (5.5) | ||||
SG&A expenses excluding restructuring charges | 69.0 | 64.6 | 6.8 | 6.2 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 69.0 | 64.6 | 6.9 | 6.2 | ||||
Earnings (loss) from operations | 6.2 | 14.3 | (57.0) | |||||
Earnings (loss) from operations excluding restructuring charges | 6.2 | 14.3 | (56.9) | |||||
Gross profit rate | 16.1 | % | 19.4 | % | (3.3) | pts. | ||
Science, Engineering & Technology | ||||||||
Revenue from services | $ | 298.2 | $ | 247.3 | 20.6 | % | 20.1 | % |
Gross profit | 66.5 | 50.6 | 31.5 | 31.1 | ||||
SG&A expenses excluding restructuring charges | 46.9 | 31.3 | 49.7 | 49.3 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 46.9 | 31.3 | 49.7 | 49.3 | ||||
Earnings (loss) from operations | 19.6 | 19.3 | 1.8 | |||||
Earnings (loss) from operations excluding restructuring charges | 19.6 | 19.3 | 1.8 | |||||
Gross profit rate | 22.3 | % | 20.4 | % | 1.9 | pts. | ||
Education | ||||||||
Revenue from services | $ | 105.9 | $ | 25.1 | 322.1 | % | 322.1 | % |
Gross profit | 16.8 | 4.3 | 291.1 | 291.1 | ||||
SG&A expenses excluding restructuring charges | 15.3 | 9.6 | 60.0 | 60.0 | ||||
Restructuring charges | - | (0.1) | NM | NM | ||||
Total SG&A expenses | 15.3 | 9.5 | 60.5 | 60.5 | ||||
Earnings (loss) from operations | 1.5 | (5.2) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 1.5 | (5.3) | NM | |||||
Gross profit rate | 15.8 | % | 17.1 | % | (1.3) | pts. | ||
Outsourcing & Consulting | ||||||||
Revenue from services | $ | 107.3 | $ | 83.6 | 28.2 | % | 26.1 | % |
Gross profit | 34.8 | 29.2 | 19.3 | 15.7 | ||||
SG&A expenses excluding restructuring charges | 30.1 | 25.1 | 19.8 | 17.0 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 30.1 | 25.1 | 19.7 | 17.0 | ||||
Earnings (loss) from operations | 4.7 | 4.1 | 16.2 | |||||
Earnings (loss) from operations excluding restructuring charges | 4.7 | 4.1 | 15.9 | |||||
Gross profit rate | 32.5 | % | 34.9 | % | (2.4) | pts. | ||
International | ||||||||
Revenue from services | $ | 280.4 | $ | 213.0 | 31.6 | % | 21.6 | % |
Gross profit | 37.7 | 26.2 | 43.8 | 32.9 | ||||
SG&A expenses excluding restructuring charges | 34.6 | 28.3 | 22.3 | 13.3 | ||||
Restructuring charges | - | - | NM | NM | ||||
Total SG&A expenses | 34.6 | 28.3 | 22.3 | 13.3 | ||||
Earnings (loss) from operations | 3.1 | (2.1) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 3.1 | (2.1) | NM | |||||
Gross profit rate | 13.4 | % | 12.3 | % | 1.1 | pts. |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
June Year to Date | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Professional & Industrial | ||||||||
Revenue from services | $ | 934.1 | $ | 900.2 | 3.8 | % | 3.2 | % |
Gross profit | 151.1 | 164.0 | (7.9) | (8.4) | ||||
SG&A expenses excluding restructuring charges | 138.4 | 140.7 | (1.7) | (2.1) | ||||
Restructuring charges | - | 4.4 | NM | NM | ||||
Total SG&A expenses | 138.4 | 145.1 | (4.6) | (5.0) | ||||
Earnings (loss) from operations | 12.7 | 18.9 | (32.9) | |||||
Earnings (loss) from operations excluding restructuring charges | 12.7 | 23.3 | (45.4) | |||||
Gross profit rate | 16.2 | % | 18.2 | % | (2.0) | pts. | ||
Science, Engineering & Technology | ||||||||
Revenue from services | $ | 552.9 | $ | 517.5 | 6.8 | % | 6.5 | % |
Gross profit | 119.7 | 105.3 | 13.7 | 13.4 | ||||
SG&A expenses excluding restructuring charges | 82.6 | 67.3 | 22.8 | 22.5 | ||||
Restructuring charges | - | 0.5 | NM | NM | ||||
Total SG&A expenses | 82.6 | 67.8 | 21.8 | 21.5 | ||||
Earnings (loss) from operations | 37.1 | 37.5 | (1.1) | |||||
Earnings (loss) from operations excluding restructuring charges | 37.1 | 38.0 | (2.5) | |||||
Gross profit rate | 21.6 | % | 20.3 | % | 1.3 | pts. | ||
Education | ||||||||
Revenue from services | $ | 217.5 | $ | 167.6 | 29.8 | % | 29.8 | % |
Gross profit | 34.0 | 24.7 | 37.6 | 37.6 | ||||
SG&A expenses excluding restructuring charges | 29.5 | 25.3 | 16.8 | 16.8 | ||||
Restructuring charges | - | 0.8 | NM | NM | ||||
Total SG&A expenses | 29.5 | 26.1 | 12.9 | 12.9 | ||||
Earnings (loss) from operations | 4.5 | (1.4) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 4.5 | (0.6) | NM | |||||
Gross profit rate | 15.6 | % | 14.7 | % | 0.9 | pts. | ||
Outsourcing & Consulting | ||||||||
Revenue from services | $ | 206.6 | $ | 173.1 | 19.3 | % | 17.5 | % |
Gross profit | 66.1 | 58.0 | 14.1 | 11.0 | ||||
Total SG&A expenses | 58.5 | 53.7 | 8.9 | 6.6 | ||||
Earnings (loss) from operations | 7.6 | 4.3 | 78.9 | |||||
Gross profit rate | 32.0 | % | 33.5 | % | (1.5) | pts. | ||
International | ||||||||
Revenue from services | $ | 553.3 | $ | 478.2 | 15.7 | % | 9.0 | % |
Gross profit | 73.4 | 60.5 | 21.3 | 13.9 | ||||
SG&A expenses excluding restructuring charges | 67.7 | 60.4 | 12.0 | 5.1 | ||||
Restructuring charges | - | 1.1 | NM | NM | ||||
Total SG&A expenses | 67.7 | 61.5 | 10.1 | 3.3 | ||||
Earnings (loss) from operations | 5.7 | (1.0) | NM | |||||
Earnings (loss) from operations excluding restructuring charges | 5.7 | 0.1 | NM | |||||
Gross profit rate | 13.3 | % | 12.7 | % | 0.6 | pts. |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
July 4, 2021 | January 3, 2021 | June 28, 2020 | ||||
Current Assets | ||||||
Cash and equivalents | $ | 64.4 | $ | 223.0 | $ | 216.2 |
Trade accounts receivable, less allowances of | ||||||
$12.5, $13.3, and $11.2, respectively | 1,362.5 | 1,265.2 | 1,085.0 | |||
Prepaid expenses and other current assets | 82.4 | 61.4 | 76.0 | |||
Total current assets | 1,509.3 | 1,549.6 | 1,377.2 | |||
Noncurrent Assets | ||||||
Property and equipment, net | 37.7 | 41.0 | 41.6 | |||
Operating lease right-of-use assets | 83.2 | 83.2 | 85.8 | |||
Deferred taxes | 302.9 | 282.0 | 265.9 | |||
Goodwill, net | 114.8 | 3.5 | - | |||
Investment in Persol Holdings | 187.7 | 164.2 | 127.2 | |||
Investment in equity affiliate | 120.0 | 118.5 | 113.6 | |||
Other assets | 391.3 | 319.9 | 307.4 | |||
Total noncurrent assets | 1,237.6 | 1,012.3 | 941.5 | |||
Total Assets | $ | 2,746.9 | $ | 2,561.9 | $ | 2,318.7 |
Current Liabilities | ||||||
Short-term borrowings | $ | 0.1 | $ | 0.3 | $ | 0.3 |
Accounts payable and accrued liabilities | 612.6 | 536.8 | 463.6 | |||
Operating lease liabilities | 19.6 | 19.6 | 19.5 | |||
Accrued payroll and related taxes | 337.0 | 293.0 | 210.7 | |||
Accrued workers' compensation and other claims | 22.0 | 22.7 | 25.6 | |||
Income and other taxes | 62.6 | 53.2 | 71.7 | |||
Total current liabilities | 1,053.9 | 925.6 | 791.4 | |||
Noncurrent Liabilities | ||||||
Operating lease liabilities | 67.1 | 67.5 | 69.9 | |||
Accrued payroll and related taxes | 58.5 | 58.5 | 38.4 | |||
Accrued workers' compensation and other claims | 40.8 | 42.2 | 45.6 | |||
Accrued retirement benefits | 214.6 | 205.8 | 180.8 | |||
Other long-term liabilities | 68.2 | 59.3 | 47.0 | |||
Total noncurrent liabilities | 449.2 | 433.3 | 381.7 | |||
Stockholders' Equity | ||||||
Common stock | 40.1 | 40.1 | 40.1 | |||
Treasury stock | (15.3) | (17.1) | (17.3) | |||
Paid-in capital | 22.3 | 21.3 | 20.5 | |||
Earnings invested in the business | 1,212.5 | 1,162.9 | 1,122.8 | |||
Accumulated other comprehensive income (loss) | (15.8) | (4.2) | (20.5) | |||
Total stockholders' equity | 1,243.8 | 1,203.0 | 1,145.6 | |||
Total Liabilities and Stockholders' Equity | $ | 2,746.9 | $ | 2,561.9 | $ | 2,318.7 |
STATISTICS: | ||||||
Working Capital | $ | 455.4 | $ | 624.0 | $ | 585.8 |
Current Ratio | 1.4 | 1.7 | 1.7 | |||
Debt-to-capital % | 0.0 | % | 0.0 | % | 0.0 | % |
Global Days Sales Outstanding | 60 | 64 | 61 | |||
Year-to-Date Free Cash Flow | $ | 42.7 | $ | 170.5 | $ | 170.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
FOR THE 26 WEEKS ENDED JULY 4, 2021 AND JUNE 28, 2020 | ||||
(UNAUDITED) | ||||
(In millions of dollars) | ||||
2021 | 2020 | |||
Cash flows from operating activities: | ||||
Net earnings (loss) | $ | 49.6 | $ | (112.1) |
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 | 14.1 | 12.0 | ||
Operating lease asset amortization | 10.7 | 10.5 | ||
Provision for credit losses and sales allowances | - | 0.1 | ||
Stock-based compensation | 2.8 | 2.4 | ||
(Gain) loss on investment in Persol Holdings | (36.3) | 48.2 | ||
Gain on sale of assets | - | (32.1) | ||
Equity in net (earnings) loss of PersolKelly Pte. Ltd. | (0.6) | 2.8 | ||
Other, net | 2.2 | 0.8 | ||
Changes in operating assets and liabilities, net of acquisitions | 5.1 | 120.8 | ||
Net cash from operating activities | 47.6 | 178.1 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (4.9) | (7.7) | ||
Proceeds from company-owned life insurance | 10.4 | 2.3 | ||
Proceeds from sale of assets | - | 55.5 | ||
Acquisition of companies, net of cash received | (219.0) | (36.4) | ||
Proceeds (payments) related to loans with equity affiliate | 5.8 | - | ||
Proceeds from (investment in) equity securities | 5.0 | - | ||
Other investing activities | 1.0 | (0.4) | ||
Net cash (used in) from investing activities | (201.7) | 13.3 | ||
Cash flows from financing activities: | ||||
Net change in short-term borrowings | (0.1) | (1.4) | ||
Financing lease payments | (0.3) | (0.6) | ||
Payments of tax withholding for stock awards | (0.6) | (1.1) | ||
Dividend payments | - | (3.0) | ||
Other financing activities | - | (0.1) | ||
Net cash used in financing activities | (1.0) | (6.2) | ||
Effect of exchange rates on cash, cash equivalents and restricted cash | (2.3) | 5.7 | ||
Net change in cash, cash equivalents and restricted cash | (157.4) | 190.9 | ||
Cash, cash equivalents and restricted cash at beginning of period | 228.1 | 31.0 | ||
Cash, cash equivalents and restricted cash at end of period | $ | 70.7 | $ | 221.9 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
REVENUE FROM SERVICES BY GEOGRAPHY | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Second Quarter | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Americas | ||||||||
United States | $ | 894.6 | $ | 700.1 | 27.8 | % | 27.8 | % |
Canada | 39.5 | 25.6 | 54.4 | 36.8 | ||||
Mexico | 33.1 | 22.5 | 47.2 | 26.2 | ||||
Puerto Rico | 26.9 | 20.0 | 34.3 | 34.3 | ||||
Brazil | - | 6.1 | NM | NM | ||||
Total Americas Region | 994.1 | 774.3 | ||||||
Europe | ||||||||
France | 57.5 | 39.9 | 44.2 | 31.7 | ||||
Switzerland | 54.0 | 47.4 | 13.8 | 7.5 | ||||
Portugal | 40.6 | 23.8 | 70.7 | 55.9 | ||||
Russia | 33.7 | 29.3 | 15.2 | 17.9 | ||||
Italy | 19.4 | 13.3 | 46.1 | 33.6 | ||||
United Kingdom | 17.7 | 17.8 | (0.6) | (11.8) | ||||
Germany | 8.5 | 7.1 | 20.6 | 10.3 | ||||
Ireland | 6.3 | 4.1 | 53.5 | 40.2 | ||||
Other | 17.0 | 11.5 | 47.7 | 32.9 | ||||
Total Europe Region | 254.7 | 194.2 | 31.2 | 22.3 | ||||
Total Asia-Pacific Region | 9.3 | 6.8 | 34.5 | 20.9 | ||||
Total Kelly Services, Inc. | $ | 1,258.1 | $ | 975.3 | 29.0 | % | 26.2 | % |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
REVENUE FROM SERVICES BY GEOGRAPHY | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
June Year to Date | ||||||||
% | CC % | |||||||
2021 | 2020 | Change | Change | |||||
Americas | ||||||||
United States | $ | 1,753.1 | $ | 1,628.6 | 7.6 | % | 7.6 | % |
Canada | 73.6 | 58.4 | 26.0 | 15.1 | ||||
Mexico | 67.7 | 51.2 | 32.3 | 25.3 | ||||
Puerto Rico | 51.1 | 37.7 | 35.3 | 35.3 | ||||
Brazil | - | 15.2 | NM | NM | ||||
Total Americas Region | 1,945.5 | 1,791.1 | 8.6 | 8.1 | ||||
Europe | ||||||||
France | 111.8 | 92.4 | 21.0 | 10.7 | ||||
Switzerland | 106.7 | 91.6 | 16.4 | 9.6 | ||||
Portugal | 84.3 | 67.4 | 25.1 | 14.5 | ||||
Russia | 66.3 | 61.4 | 8.1 | 15.9 | ||||
Italy | 37.5 | 28.0 | 33.9 | 22.6 | ||||
United Kingdom | 34.7 | 40.1 | (13.4) | (21.4) | ||||
Germany | 15.6 | 15.1 | 3.6 | (5.2) | ||||
Ireland | 11.4 | 9.1 | 25.6 | 14.9 | ||||
Other | 32.6 | 26.7 | 22.1 | 11.9 | ||||
Total Europe Region | 500.9 | 431.8 | 16.0 | 9.2 | ||||
Total Asia-Pacific Region | 17.6 | 13.5 | 29.8 | 16.9 | ||||
Total Kelly Services, Inc. | $ | 2,464.0 | $ | 2,236.4 | 10.2 | % | 8.3 | % |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||
RECONCILIATION OF NON-GAAP MEASURES | ||||
SECOND QUARTER | ||||
(UNAUDITED) | ||||
(In millions of dollars) | ||||
2021 | 2020 | |||
SG&A Expenses: | As Reported | Adjusted | ||
Professional & Industrial | $ | 69.0 | $ | 64.6 |
Science, Engineering & Technology | 46.9 | 31.3 | ||
Education | 15.3 | 9.6 | ||
Outsourcing & Consulting | 30.1 | 25.1 | ||
International | 34.6 | 28.3 | ||
Corporate | 21.4 | 19.4 | ||
Total Company | $ | 217.3 | $ | 178.3 |
2021 | 2020 | |||
Earnings (loss) from Operations: | As Reported | Adjusted | ||
Professional & Industrial | $ | 6.2 | $ | 14.3 |
Science, Engineering & Technology | 19.6 | 19.3 | ||
Education | 1.5 | (5.3) | ||
Outsourcing & Consulting | 4.7 | 4.1 | ||
International | 3.1 | (2.1) | ||
Corporate | (21.4) | (19.4) | ||
Total Company | $ | 13.7 | $ | 10.9 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||
SECOND QUARTER | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
2020 | ||||||
SG&A Expenses: | As Reported |
Restructuring(4)
|
Adjusted | |||
Professional & Industrial | $ | 64.6 | $ | - | $ | 64.6 |
Science, Engineering & Technology | 31.3 | - | 31.3 | |||
Education | 9.5 | 0.1 | 9.6 | |||
Outsourcing & Consulting | 25.1 | - | 25.1 | |||
International | 28.3 | - | 28.3 | |||
Corporate | 19.3 | 0.1 | 19.4 | |||
Total Company | $ | 178.1 | $ | 0.2 | $ | 178.3 |
2020 | ||||||
Earnings (loss) from Operations: | As Reported |
Restructuring(4)
|
Adjusted | |||
Professional & Industrial | $ | 14.3 | $ | - | $ | 14.3 |
Science, Engineering & Technology | 19.3 | - | 19.3 | |||
Education | (5.2) | (0.1) | (5.3) | |||
Outsourcing & Consulting | 4.1 | - | 4.1 | |||
International | (2.1) | - | (2.1) | |||
Corporate | (19.3) | (0.1) | (19.4) | |||
Total Company | $ | 11.1 | $ | (0.2) | $ | 10.9 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||
RECONCILIATION OF NON-GAAP MEASURES | ||||
JUNE YEAR TO DATE | ||||
(UNAUDITED) | ||||
(In millions of dollars) | ||||
2021 | 2020 | |||
SG&A Expenses: | As Reported | Adjusted | ||
Professional & Industrial | $ | 138.4 | $ | 140.7 |
Science, Engineering & Technology | 82.6 | 67.3 | ||
Education | 29.5 | 25.3 | ||
Outsourcing & Consulting | 58.5 | 53.7 | ||
International | 67.7 | 60.4 | ||
Corporate | 43.3 | 41.7 | ||
Total Company | $ | 420.0 | $ | 389.1 |
2021 | 2020 | |||
Earnings (loss) from Operations: | As Reported | Adjusted | ||
Professional & Industrial | $ | 12.7 | $ | 23.3 |
Science, Engineering & Technology | 37.1 | 38.0 | ||
Education | 4.5 | (0.6) | ||
Outsourcing & Consulting | 7.6 | 4.3 | ||
International | 5.7 | 0.1 | ||
Corporate | (43.3) | (41.7) | ||
Total Company | $ | 24.3 | $ | 23.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||
JUNE YEAR TO DATE | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
2020 | ||||||
SG&A Expenses: | As Reported |
Restructuring(4)
|
Adjusted | |||
Professional & Industrial | $ | 145.1 | $ | (4.4) | $ | 140.7 |
Science, Engineering & Technology | 67.8 | (0.5) | 67.3 | |||
Education | 26.1 | (0.8) | 25.3 | |||
Outsourcing & Consulting | 53.7 | - | 53.7 | |||
International | 61.5 | (1.1) | 60.4 | |||
Corporate | 43.4 | (1.7) | 41.7 | |||
Total Company | $ | 397.6 | $ | (8.5) | $ | 389.1 |
2020 | ||||||||||
Earnings (loss) from Operations: | As Reported |
Goodwill impairment(1)
|
Gain on sale
of assets(3)
|
Restructuring(4)
|
Adjusted | |||||
Professional & Industrial | $ | 18.9 | $ | - | $ | - | $ | 4.4 | $ | 23.3 |
Science, Engineering & Technology | 37.5 | - | - | 0.5 | 38.0 | |||||
Education | (1.4) | - | - | 0.8 | (0.6) | |||||
Outsourcing & Consulting | 4.3 | - | - | - | 4.3 | |||||
International | (1.0) | - | - | 1.1 | 0.1 | |||||
Corporate | (159.0) | 147.7 | (32.1) | 1.7 | (41.7) | |||||
Total Company | $ | (100.7) | $ | 147.7 | $ | (32.1) | $ | 8.5 | $ | 23.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES (continued) | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars except per share data) | ||||||||
Second Quarter | June Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Income tax expense (benefit) | $ | (2.6) | $ | 0.9 | $ | 7.9 | $ | (35.3) |
Taxes on goodwill impairment charge(1)
|
- | - | - | 23.0 | ||||
Taxes on investment in Persol Holdings(2)
|
(1.9) | (9.0) | (11.1) | 14.8 | ||||
Taxes on gain on sale of assets(3)
|
- | - | - | (8.1) | ||||
Taxes on restructuring charges(4)
|
- | - | - | 2.2 | ||||
Adjusted income tax expense (benefit) | $ | (4.5) | $ | (8.1) | $ | (3.2) | $ | (3.4) |
Second Quarter | June Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net earnings (loss) | $ | 24.0 | $ | 41.1 | $ | 49.6 | $ | (112.1) |
Goodwill impairment charge, net of taxes(1)
|
- | - | - | 124.7 | ||||
(Gain) loss on investment in Persol Holdings, net of taxes(2)
|
(4.4) | (20.6) | (25.2) | 33.4 | ||||
Gain on sale of assets, net of taxes(3)
|
- | - | - | (24.0) | ||||
Restructuring charges, net of taxes(4)
|
- | (0.2) | - | 6.3 | ||||
Adjusted net earnings | $ | 19.6 | $ | 20.3 | $ | 24.4 | $ | 28.3 |
Second Quarter | June Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Per Share | Per Share | |||||||
Net earnings (loss) | $ | 0.60 | $ | 1.04 | $ | 1.25 | $ | (2.86) |
Goodwill impairment charge, net of taxes(1)
|
- | - | - | 3.18 | ||||
(Gain) loss on investment in Persol Holdings, net of taxes(2)
|
(0.11) | (0.52) | (0.63) | 0.85 | ||||
Gain on sale of assets, net of taxes(3)
|
- | - | - | (0.61) | ||||
Restructuring charges, net of taxes(4)
|
- | - | - | 0.16 | ||||
Adjusted net earnings | $ | 0.49 | $ | 0.51 | $ | 0.61 | $ | 0.72 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF NON-GAAP MEASURES (continued) | ||||||||
(UNAUDITED) | ||||||||
(In millions of dollars) | ||||||||
Second Quarter | June Year to Date | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net earnings (loss) | $ | 24.0 | $ | 41.1 | $ | 49.6 | $ | (112.1) |
Other (income) expense, net | 0.3 | (2.6) | 3.7 | (4.3) | ||||
Income tax expense (benefit) | (2.6) | 0.9 | 7.9 | (35.3) | ||||
Depreciation and amortization | 8.5 | 6.0 | 14.8 | 12.0 | ||||
EBITDA | 30.2 | 45.4 | 76.0 | (139.7) | ||||
Equity in net (earnings) loss of affiliate | (1.7) | 1.3 | (0.6) | 2.8 | ||||
Goodwill impairment charge(1)
|
- | - | - | 147.7 | ||||
(Gain) loss on investment in Persol Holdings(2)
|
(6.3) | (29.6) | (36.3) | 48.2 | ||||
Gain on sale of assets(3)
|
- | - | - | (32.1) | ||||
Restructuring(4)
|
- | (0.2) | - | 8.5 | ||||
Adjusted EBITDA | $ | 22.2 | $ | 16.9 | $ | 39.1 | $ | 35.4 |
Adjusted EBITDA margin | 1.8 | % | 1.7 | % | 1.6 | % | 1.6 | % |