Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q1 2024 Earnings Presentation
18 slides from Kelly Services's earnings presentation, May 9, 2024
Slide 1: wr N oO N oO > O =
wr N oO N oO > O =
Slide 2: Presentation
Presentation © 2024 Kelly Serveas, Ine Alright reserved
Slide 3: Non-GAAP Measures
Non-GAAP Measures Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2024 gain on the sale of our EMEA staffing operations, the 2024 gain on forward contract, the 2024 restructuring charges, the 2024 transaction costs, and the 2023 restructurin
Slide 4: Safe Harbor Statement
Safe Harbor Statement This presentation 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: a2 i rT) c G = ic
a2 i rT) c G = ic
Slide 6: First-Quarter 2024 Takeaways
=== Refer to the last slide for footnotes. © 2024 Kelly Services nc. Alright reserved, First-Quarter 2024 Takeaways Staffing demand continued to be impacted by market and labor trends * Qlrevenue down 17.6% on a reported basis due primarily to the sale of European staffing operations, down 2.6%") on
Slide 7: First-Quarter 2024 Financial Summary
First-Quarter 2024 Financial Summary Change Increase/(Decrease) Actual Results As Reported As Adjusted”) Revenue $1.0B (17.6%) (17.6%) Gross Profit Rate 19.7% (30) bps (30) bps Earnings from Operations $26.8M 150.2% 33.8% Diluted Earnings per Share $0.70 $0.41 $0.14 Adjusted EBITDA $33.3M 24.5% Adju
Slide 8: First-Quarter 2024 Revenue Trends
First-Quarter 2024 Revenue Trends Reported®) Organic" Total (17.6%) (2.6%) Professional & Industrial (11.0%) Science, Engineering & Technology (5.6%) Education 16.2% Outsourcing & Consulting (5.7%) s===== Refer to the last slide for footnotes. (© 2024 Kelly Services ne. llrightsreserved.
Slide 9: First-Quarter 2024 Gross Profit Rate
First-Quarter 2024 Gross Profit Rate 21.0% 90 bps 20.5% 20.0% 20.0% ° (80) bps || 19.7% 19.5% (40) bps 19.0% 18.5% 18.0% 17.5% 17.0% Q1 2023 GP Rate Sale of EMEA Business Mix Perm Fees Q1 2024 GP Rate staffing operations ° GP rate favorably impacted by the sale of our EMEA staffing operations, which
Slide 10: First-Quarter 2024 SG&A
First-Quarter 2024 SG&A Sinmilions 5250 $243 $240 $230 $220 $210 ($30) $200 56 $191 $190 5180 (824) ($4) S170 $160 $150 QI 2023 SG&A Sale of EMEA Operations Transformation Transaction Q1 2024 SG&A staffing operations costs (4) costs * SG&A expenses decreased following the sale of our EMEA staffing o
Slide 11: First-Quarter 2024 Revenue and Gross Profit Mix
© 2024 kelly Serves, First-Quarter 2024 Revenue and Gross Profit Mix I Kelly Professional & Industrial I Kelly Science, Engineering, Technology & Telecom 1 Kelly Education 1 KellyOCG Inc, Alright reserved Revenue mix by segment f 10% 28% Q 28% di 34% Gross Profit mix by segment ee 17% 31% 21% ‘ 31%
Slide 12: $ in millions except per share data
$ in millions except per share data
Slide 13: First-Quarter 2024 Liquidity
First-Quarter 2024 Liquidity $inmillions $600 $505 $500 6413 $427 $400 $300 $200 $100 $201 siz $126 $0 Q12023 Q4 2023 Q12024 Cash, net of Short-term Borrowings m Borrowing Capacity + As of the end of Q1 2024, we have more than $500 million of available liquidity . Asa Anounced on May 3, 2024, the pl
Slide 14: Business Transformation Overview
Business Transformation Overview Comprehensive initiative to build on our strategic progress. In 2023, we successfully delivered on structural cost optimization, and we will continue to execute on opportunities to accelerate profitable top- and bottom-line growth. aa Delivering on three key outcomes
Slide 15: Sale of European Staffing Operations
Sale of European Staffing Operations With the closing of the European staffing transaction in January 2024, we have unlocked more than $100 million of capital to reinvest in organic and inorganic growth in our North American staffing and global MSP and RPO businesses. European staffing operations 20
Slide 16: Q2 2024 Outlook
© 2024 Kelly Services, Inc. Allright reserved Q2 2024 Outlook With a streamlined operating model now comprising four business units with market-leading positions in North American staffing and global MSP and RPO solutions, we remain committed to the execution of our specialty growth strategy and tra
Slide 17: We have redesigned our operating model to drive profitable growth
We have redesigned our operating model to drive profitable growth. Our priorities for each segment are clear. Together, they contribute to a strong, balanced portfolio. Optimize Operations and Drive Efficiencies = Accelerate Organic and Inorganic Growth Kelly Kelly Science, I \ Professional & Engine
Slide 18: First-Quarter 2024 Footnotes
© 2024 Kelly Services, Inc. Allright reserved First-Quarter 2024 Footnotes (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Organic excludes the impact of the sale of our EMEA staffing operations in January 2024; See reconciliation of Non-GAAP Measures included in Form 8-K dated May 9, 2024;