Press release
Kelly® Reports Third Quarter Earnings
Financial Highlights Q3 revenue declined 18.1% as COVID-19 related demand declines persistQ3 operating loss of $2.4 million, or earnings of $7.0 million as
About this update from Kelly Services, Inc.
[{"type":"text","content":"Financial Highlights\n Q3 revenue declined 18.1% as COVID-19 related demand declines persistQ3 operating loss of $2.4 million, or earnings of $7.0 million as adjusted, compared to earnings of $17.0 million last year as adjustedQ3 earnings per share of $0.42 or $0.29 as adjusted, compared to $0.43 last year as adjusted TROY, Mich., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA) (Nasdaq: KELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2020. Peter Quigley, president and chief executive officer, announced revenue for the third quarter of 2020 totaled $1.0 billion, an 18.1% decline compared to the corresponding quarter of 2019. Revenues declined year-over-year in the quarter as the continuing effects of the COVID-19 crisis impacted customer demand. Losses from operations for the third quarter of 2020 totaled $2.4 million, compared to earnings of $17.1 million reported for the third quarter of 2019. The 2020 third quarter results include a non-cash charge to allowance for doubtful accounts related to a customer dispute and an adjustment to restructuring charges. The third quarter of 2019 results included an adjustment to restructuring charges. On an adjusted basis, earnings from operations were $7.0 million compared to $17.0 million in the corresponding quarter of 2019. Diluted earnings per share in the third quarter of 2020 were $0.42 compared to a loss per share of $0.27 in the third quarter of 2019. Included in the earnings per share in the third quarter of 2020 is a non-cash gain, net of tax, on Kelly’s investment in Persol Holdings common stock of $0.29, partially offset by a loss of $0.17 related to the customer dispute charge, net of tax. Included in the loss per share in the third quarter of 2019 is $0.70 from a non-cash loss per share on Kelly’s investment in Persol Holdings common stock, net of tax. On an adjusted basis, earnings per share were $0.29 for the third quarter of 2020 compared to $0.43 for the corresponding quarter of 2019. “As a gradual recovery from the pandemic continued into the third quarter, revenue trends in all of Kelly’s segments showed some sequential improvement,” stated Quigley. “Our higher-margin specialties, such as outsourcing & consulting, science, and virtual call center, proved to be particularly resilient. Kelly has also made sign...