Press release
Kelly Reports Second-Quarter 2023 Earnings, Substantial Progress on Business Transformation
Q2 revenue down 3.9%; down 4.5% in constant currency; organic revenue down 2.2% in constant currencyQ2 gross profit down 8.3%; GP rate, 19.8%, down 90 bps
About this update from Kelly Services, Inc.
[{"type":"text","content":"Q2 revenue down 3.9%; down 4.5% in constant currency; organic revenue down 2.2% in constant currencyQ2 gross profit down 8.3%; GP rate, 19.8%, down 90 bps year-over-year due primarily to lower permanent placement fees as customer full-time hiring deceleratesQ2 operating earnings of $6.2 million, including $8.0 million of transformation-related restructuring and impairment charges, or $14.2 million on an adjusted basisComprehensive business transformation program expected to drive meaningful improvement in EBITDA margin beginning in the second half of 2023TROY, Mich., Aug. 10, 2023 /PRNewswire/ -- Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider, today announced results for the second quarter of 2023.\n\n \n \n \n \n \n \n\n \nPeter Quigley, president and chief executive officer, announced revenue for the second quarter of 2023 totaled $1.2 billion, a 3.9% decrease, or 4.5% decrease in constant currency, compared to the corresponding quarter of 2022, with organic, constant currency revenue down 2.2%. Year-over-year revenue trends were impacted by the sale of Russian operations in July 2022 and customers' more guarded approach to hiring, partially offset by favorable currency impacts.\n\"In the second quarter, we remained focused on seeking out pockets of demand in more resilient markets, while the effects of ongoing macroeconomic uncertainty became more noticeable in certain parts of our portfolio,\" said Quigley. \"Our Education segment and higher-margin outcome-based solutions in P&I continued to deliver year-over-year growth, while lower demand for temporary and permanent placement services impacted results in our P&I and SET segments.\"\nKelly reported operating earnings in the second quarter of 2023 of $6.2 million, compared to earnings of $8.2 million reported in the second quarter of 2022. Earnings in the second quarter of 2023 include $8.0 million of transformation-related restructuring and impairment charges. Excluding the transformation-related charges, adjusted earnings from operations were $14.2 million. Earnings in the second quarter of 2022 included an $18.5 million asset impairment charge related to our Russian operations and a $4.4 million gain on sale of assets related to underutilized real property and adjusted earnings were $22.3 million. Adjusted earnings declined year-over-ye...