Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q2 2023 Earnings Presentation
17 slides from Kelly Services's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 – August 10, 2023
Q2 2023 August 10, 2023
Slide 2: Presentation Disclosures
Kelly PRESENTATION DISCLOSURES
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES Management believes that the non-GAAP Management uses Adjusted EBITDA (adjusted These non-GAAP measures may have limitations as (Generally Accepted Accounting Principles) earnings before interest, taxes, depreciation analytical tools because they exclude items which information exc
Slide 4: Safe Harbor Statement
SAFE H A R B O R STATEMENT This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not
Slide 5: Financials
Kelly FINANCIALS
Slide 6: Second Quarter 2023 Takeaways
Second Quarter 2023 Takeaways. Specialty talent demand continues while broader staffing demand continued to be impacted by economic uncertainty and labor market trends • Q2 revenue declined by 3.9% on a reported basis, down 4.5% in constant currency(1) • Organic, constant currency(1) revenue down 2.
Slide 7: Second Quarter 2023 Financial Summary
Second Quarter 2023 Financial Summary. YOY Change Increase/(Decrease) Actual Results As Reported As Adjusted(2) $1.2B (3.9%) (3.9%) Revenue (4.5%) CC(1) (4.5%) CC(1) Gross Profit Rate 19.8% (90) bps (90) bps $6.2M (23.1%) (35.4%) Earnings from Operations (17.8%) CC(1) (33.4%) CC(1) Adjusted EBITDA $
Slide 8: Second Quarter 2023 Revenue
Second Quarter 2023 Revenue. Reported Constant Currency(1) Organic(1)(3) Total (3.9%) (4.5%) (2.2%) Professional & Industrial (9.3%) (8.9%) (8.9%) Science, Engineering & (7.0%) (7.0%) (7.0%) Technology Education 32.6% 32.6% 32.6% Outsourcing & Consulting (8.6%) (8.2%) (8.2%) International (9.1%) (12
Slide 9: Second Quarter 2023 Gross Profit Rate
Second Quarter 2023 Gross Profit Rate. • Operating Segments GP rate reflects higher employee-related costs, partially offset by favorable specialty mix • Permanent placement fees decreased as customers slowed permanent hiring activity amid the uncertain economic environment
Slide 10: Second Quarter 2023 SG&A
Second Quarter 2023 SG&A. $ in millions • Expenses in Operations decreased as a result of lower performance-based incentive compensation expenses as a result of lower revenues as well as the initial impact from our transformation activities • Transformation costs include $1.1 million of severance ex
Slide 11: Second Quarter 2023 Revenue & Gross Profit Mix
Second Quarter 2023 Revenue & Gross Profit Mix. Revenue mix by segment Gross Profit mix by segment
Slide 12: Second Quarter 2023 EPS Summary
Second Quarter 2023 EPS Summary. $ in millions except per share data 2023 2022 Amount Per Share Amount Per Share Net earnings $7.5 $0.20 $2.2 $0.06 Restructuring charges, net of taxes(5) 4.2 0.11 - - Asset impairment charge, net of 1.8 0.05 18.5 0.48 taxes(6) Gain on sale of assets, net of taxes(7)
Slide 13: Second Quarter 2023 Liquidity
Second Quarter 2023 Liquidity. $ in millions • As of the end of Q2 2023, we continue to maintain more than $400 million of available liquidity to fund organic and inorganic growth initiatives and provide the ability to fund working capital as revenues improve as we move through the economic cycle Fo
Slide 14: Business Transformation Overview
Business Transformation Overview. Comprehensive initiative to build on our strategic progress. Efforts are facilitated by our Transformation Management Office and led by our Chief Transformation Officer with the support of an outside consulting firm. Three key outcomes are expected: • Optimize busin
Slide 15: 2023 Outlook and Beyond
2023 Outlook and Beyond. We are navigating market conditions created by the current economic uncertainty with a continued commitment to the execution of our specialty growth strategy and transformation initiatives. Assuming a continuation of the current economic environment through the remainder of
Slide 16: Our operating model aligns to these specialties
Our operating model aligns to these specialties. We have redesigned our operating model to drive profitable growth in our chosen specialties. Kelly Science, Kelly Professional Engineering, & Industrial Technology & Telecom Kelly Education Kelly OCG Kelly International Revenue (9) $1.7B $1.3B $0.6B (
Slide 17: Second Quarter 2023 Footnotes
Second Quarter 2023 Footnotes.