Press release
Kelly® Reports First Quarter Earnings
Financial Highlights Q1 revenue down 8.8%; 2.7% of the decline due to estimated impact of COVID-19 crisis Q1 operating earnings decline on $147.7 million
About this update from Kelly Services, Inc.
[{"type":"text","content":"Financial Highlights\n Q1 revenue down 8.8%; 2.7% of the decline due to estimated impact of COVID-19 crisis Q1 operating earnings decline on $147.7 million non-cash goodwill impairment charge, partially offset by a gain on sale of headquarters buildings; operating earnings declined 46% on an adjusted basisQ1 loss per share of $3.91, compared to earnings of $0.56 last year; Q1 earnings per share on an adjusted basis of $0.20 compared to $0.45 last year TROY, Mich., May 04, 2020 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA) (Nasdaq: KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2020. Peter Quigley, president and chief executive officer, announced revenue for the first quarter of 2020 totaled $1.3 billion, an 8.8% decrease, or 8.3% in constant currency, compared to the corresponding quarter of 2019. Included in the revenue decline is an estimated year-over-year decrease of 2.7% as a result of lower demand during the second half of March as customers reacted to the COVID-19 crisis. Loss from operations for the first quarter of 2020 totaled $111.8 million, compared to the $16.8 million of earnings from operations reported for the first quarter of 2019. The 2020 first quarter results include a $147.7 million non-cash goodwill impairment charge, an $8.7 million restructuring charge and a gain on the sale of headquarters buildings of $32.1 million. The first quarter of 2019 included a restructuring charge of $6.3 million. On an adjusted basis, earnings from operations were $12.5 million for the first quarter of 2020 compared to $23.1 million for the first quarter of 2019. Diluted loss per share in the first quarter of 2020 is $3.91 compared to earnings per share of $0.56 in the first quarter of 2019. Included in the loss per share in the first quarter of 2020 is a non-cash goodwill impairment charge of $3.18 per share, net of tax, a $1.38 per share non-cash loss, net of tax, on Persol Holdings common stock, a $0.17 per share restructuring charge, net of tax, and a gain on the sale of headquarters buildings of $0.61, per share net of tax. Included in the earnings per share in the first quarter of 2019 is a $0.23 from a non-cash gain per share on Kelly’s investment in Persol Holdings common stock, net of tax and a $0.12 per share restructuring charge, net of tax. On an adjusted basis, ...