Press release
Kelly Reports First-Quarter 2023 Earnings
Q1 revenue down 2.2%; down 1.4% in constant currency; organic revenue nearly flat (down 0.5% in constant currency)Q1 gross profit down 1.7%; down 0.8% in
About this update from Kelly Services, Inc.
[{"type":"text","content":"Q1 revenue down 2.2%; down 1.4% in constant currency; organic revenue nearly flat (down 0.5% in constant currency)Q1 gross profit down 1.7%; down 0.8% in constant currency; delivered continued improvement in GP rate, 20.0%, up 10 bps year-over-yearQ1 operating earnings of $10.7 million, including a $5.7 million restructuring charge, or $16.4 million on an adjusted basisInitiated a comprehensive business transformation program to significantly improve EBITDA marginTROY, Mich., May 11, 2023 /PRNewswire/ -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2023.\n\n \n \n \n \n \n \n\n \nPeter Quigley, president and chief executive officer, announced revenue for the first quarter of 2023 totaled $1.3 billion, a 2.2% decrease, or 1.4% decrease in constant currency, compared to the corresponding quarter of 2022, with organic, constant currency revenue down 0.5%. Year-over-year revenue trends were impacted by foreign currency headwinds and the impact of the sale of Russian operations in July 2022. Year-over-year results in the quarter also reflect the impact of the 2022 acquisitions of RocketPower, a recruitment process outsourcing firm, and Pediatric Therapeutic Services, a specialty firm providing in-school therapy services.\n\"Taking into account well recognized macroeconomic headwinds, we delivered solid results as our specialty solutions proved more resilient than others. Our Education segment and our more profitable outcome-based solutions in both P&I and SET continued to deliver solid growth, while, as expected, our staffing businesses faced decreased demand in this environment,\" said Quigley.\nKelly reported operating earnings in the first quarter of 2023 of $10.7 million, compared to earnings of $23.4 million reported in the first quarter of 2022. Earnings in the first quarter of 2023 included a $5.7 million restructuring charge. The restructuring charge reflects cost management actions in response to the current demand levels and to reposition the Professional & Industrial staffing business to better capitalize on opportunities in local markets. Excluding the restructuring charge, adjusted earnings from operations were $16.4 million. Earnings in the first quarter of 2022 included a $0.9 million gain on sale of assets and adjusted earnings were $22.5...