Kelly Services, Inc. (KELYB) Bundle
A Brief History of KELLY SERVICES, INC.
Company Overview
KELLY SERVICES, INC. is a global workforce solutions company that specializes in staffing and outsourcing services. As of 2024, the company has undergone significant restructuring and strategic realignment to adapt to changing market conditions and enhance operational efficiency.
Recent Financial Performance
For the first nine months of 2024, KELLY SERVICES reported a revenue from services of $3,140.7 million, a decrease of 12.8% from $3,603.5 million in the same period of 2023. This decline was primarily attributed to the sale of its EMEA staffing operations on January 2, 2024, which offset gains from the acquisition of MRP in May 2024.
| Financial Metric | 9 Months 2024 | 9 Months 2023 | Change (%) |
|---|---|---|---|
| Revenue from Services | $3,140.7 million | $3,603.5 million | -12.8% |
| Gross Profit | $641.1 million | $723.2 million | -11.4% |
| Net Earnings | $31.2 million | $25.0 million | 24.6% |
Segment Performance
Revenue performance varied across segments. The Professional & Industrial segment reported revenue of $1,086.5 million, down 7.3% from $1,171.4 million in 2023. The Science, Engineering & Technology segment experienced a revenue increase of 13.6%, totaling $1,026.7 million compared to $903.5 million in 2023. The Education segment saw a 17.0% increase in revenue, reaching $683.1 million.
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Professional & Industrial | $1,086.5 million | $1,171.4 million | -7.3% |
| Science, Engineering & Technology | $1,026.7 million | $903.5 million | 13.6% |
| Education | $683.1 million | $583.9 million | 17.0% |
| Outsourcing & Consulting | $346.0 million | $342.4 million | 1.1% |
Operational Changes
The company completed the sale of its EMEA staffing operations, recognizing a gain of $1.6 million in the first nine months of 2024. Additionally, the sale of the Ayers Group in June 2024 generated a gain of $5.4 million. These strategic divestitures are part of KELLY's broader transformation initiative aimed at optimizing its operational model and focusing on higher-margin services.
Cash Flow Analysis
In terms of cash flow, KELLY SERVICES generated $11.9 million from operating activities in the first nine months of 2024, down from $33.4 million in 2023. Cash used for investing activities totaled $355.5 million, primarily due to the MRP acquisition, while financing activities generated $217.3 million, reflecting net borrowings of $228.2 million.
| Cash Flow Activity | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Cash from Operating Activities | $11.9 million | $33.4 million |
| Cash Used for Investing Activities | $355.5 million | $10.8 million |
| Cash from Financing Activities | $217.3 million | -$56.6 million |
Debt and Capital Structure
As of the end of the third quarter of 2024, KELLY SERVICES had a debt-to-total capital ratio of 15.1%, significantly up from 0.0% at year-end 2023. This change reflects the increased borrowings associated with the financing of the MRP acquisition. The company had cash, cash equivalents, and restricted cash totaling $40.4 million at the end of the third quarter of 2024, down from $126.5 million at year-end 2023.
| Debt Metrics | As of Q3 2024 | Year-end 2023 |
|---|---|---|
| Debt-to-Total Capital | 15.1% | 0.0% |
| Cash, Cash Equivalents, and Restricted Cash | $40.4 million | $126.5 million |
Market Position and Future Outlook
KELLY SERVICES continues to adapt to the evolving workforce landscape with a focus on enhancing its service offerings and operational efficiency. The strategic acquisitions and divestitures undertaken in recent periods are expected to position the company for a stronger market presence and improved financial performance in the future.
A Who Owns Kelly Services, Inc. (KELYB)
Major Shareholders
As of 2024, the ownership structure of Kelly Services, Inc. (KELYB) reflects a mix of institutional and individual investors. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group | 12.5% |
| Institutional Investor | BlackRock, Inc. | 10.2% |
| Institutional Investor | Dimensional Fund Advisors | 8.9% |
| Individual Investor | Kelly Family | 15.3% |
| Institutional Investor | State Street Corporation | 7.4% |
| Other Investors | Various Other Institutions | 45.7% |
Stock Performance
As of early 2024, Kelly Services, Inc. (KELYB) shares have shown a mixed performance due to market volatility and company restructuring efforts. The stock price as of January 2024 was approximately $18.50.
Financial Overview
For the first nine months of 2024, Kelly Services reported:
- Revenue from services: $3.14 billion
- Net earnings: $31.2 million
- Basic earnings per share: $0.86
- Diluted earnings per share: $0.85
Recent Transactions and Changes
Significant recent transactions affecting ownership include:
- Sale of EMEA staffing operations on January 2, 2024, affecting international revenue streams.
- Acquisition of Motion Recruitment Partners (MRP) in May 2024 for $444.8 million, aimed at enhancing staffing and consulting solutions.
- Sale of Ayers Group for $7.5 million on June 10, 2024, as part of a strategy to optimize operations.
Debt and Liquidity
As of the third quarter of 2024, Kelly Services reported:
- Long-term borrowings: $40 million
- Cash, cash equivalents, and restricted cash: $40.4 million
- Working capital: $516.5 million
Market Trends and Outlook
The company is navigating challenges in the staffing sector, with a focus on higher-margin specialties and improved financial performance. Analysts project a potential recovery in earnings as the market stabilizes.
Financial Summary Table
| Financial Metric | Value |
|---|---|
| Revenue from Services (2024 YTD) | $3.14 billion |
| Net Earnings (2024 YTD) | $31.2 million |
| Basic Earnings per Share | $0.86 |
| Diluted Earnings per Share | $0.85 |
| Long-term Borrowings | $40 million |
| Cash and Cash Equivalents | $40.4 million |
| Working Capital | $516.5 million |
Kelly Services, Inc. (KELYB) Mission Statement
Company Overview
Kelly Services, Inc. (KELYB) is a global leader in workforce solutions, providing staffing services and workforce management solutions across various sectors. The company focuses on delivering innovative staffing solutions that empower organizations to achieve their goals.
Mission Statement
The mission statement of Kelly Services emphasizes the commitment to connecting individuals with opportunities that enhance their careers and provide organizations with the staffing solutions necessary for success. The core elements of the mission include:
- Empowering individuals by providing access to employment opportunities.
- Supporting organizations in achieving operational excellence through tailored staffing solutions.
- Fostering a diverse and inclusive workforce that promotes innovation and growth.
Key Financial Metrics
As of the third quarter of 2024, Kelly Services reported significant financial data that reflects its operational performance:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue from Services | $1,038.1 million | $1,118.0 million | $3,140.7 million | $3,603.5 million |
| Net Earnings | $0.8 million | $6.6 million | $31.2 million | $25.0 million |
| Earnings per Share (EPS) | $0.02 | $0.18 | $0.86 | $0.68 |
| Gross Profit Rate | 21.4% | 20.4% | 20.4% | 20.1% |
| Cash and Cash Equivalents | $32.8 million | $125.8 million | $40.4 million | $126.5 million |
Segment Performance
Kelly Services operates in several segments, each contributing to its overall mission and financial results:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-to-Date 2024 Revenue | Year-to-Date 2023 Revenue |
|---|---|---|---|---|
| Professional & Industrial | $370.4 million | $378.0 million | $1,086.5 million | $1,171.4 million |
| Science, Engineering & Technology | $405.2 million | $295.7 million | $1,026.7 million | $903.5 million |
| Education | $142.1 million | $128.1 million | $683.1 million | $583.9 million |
| Outsourcing & Consulting | $121.0 million | $114.1 million | $346.0 million | $342.4 million |
Strategic Initiatives
In alignment with its mission, Kelly Services has undertaken several strategic initiatives:
- Acquisition of MRP in May 2024 to expand service offerings and market reach.
- Divestiture of EMEA staffing operations in January 2024 to streamline operations and focus on core markets.
- Continuous investment in technology to enhance service delivery and operational efficiency.
Conclusion on Mission Statement Alignment
Kelly Services’ mission statement is reflected in its financial performance and strategic decisions, which aim to empower individuals and organizations through innovative staffing solutions.
How Kelly Services, Inc. (KELYB) Works
Company Overview
Kelly Services, Inc. operates as a staffing and workforce solutions company. It provides staffing services in various sectors, including professional and industrial, science, engineering, technology, education, and outsourcing and consulting. As of 2024, the company has undergone significant changes, including the sale of its EMEA staffing operations and the acquisition of MRP.
Financial Performance
For the third quarter of 2024, Kelly Services reported a consolidated total revenue of $1,038.1 million, down from $1,118.0 million in the same quarter of 2023, reflecting a 7.1% decrease. Year-to-date, revenues decreased to $3,140.7 million from $3,603.5 million, a 12.8% decline.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) | % Change |
|---|---|---|---|---|---|---|
| Professional & Industrial | $370.4 | $378.0 | (2.0%) | $1,086.5 | $1,171.4 | (7.3%) |
| Science, Engineering & Technology | $405.2 | $295.7 | 37.1% | $1,026.7 | $903.5 | 13.6% |
| Education | $142.1 | $128.1 | 10.9% | $683.1 | $583.9 | 17.0% |
| Outsourcing & Consulting | $121.0 | $114.1 | 6.0% | $346.0 | $342.4 | 1.1% |
| International | $— | $203.0 | (100.0%) | $— | $604.7 | (100.0%) |
Gross Profit and Earnings
Gross profit for the third quarter of 2024 was $221.7 million, compared to $228.5 million in Q3 2023, marking a 3.0% decrease. The gross profit rate increased to 21.4% from 20.4% year-over-year.
Earnings from operations for the quarter totaled $2.6 million, a significant increase from $0.1 million in the previous year. Year-to-date earnings from operations reached $41.6 million, compared to $17.0 million in 2023, reflecting a 144.5% increase.
Operational Segments
The company’s operations are segmented into several categories, reflecting diverse service offerings:
- Professional & Industrial
- Science, Engineering & Technology
- Education
- Outsourcing & Consulting
Cash Flow and Liquidity
As of the end of the third quarter of 2024, Kelly Services had $40.4 million in cash, cash equivalents, and restricted cash. The company generated $11.9 million from operating activities, down from $33.4 million in the same period of 2023. Trade accounts receivable totaled $1.2 billion, with a global Days Sales Outstanding (DSO) of 64 days.
Debt and Financing
The company has a revolving credit facility with $188.2 million in long-term borrowings as of the third quarter of 2024. The Securitization Facility had a remaining borrowing capacity of $110.0 million.
Recent Acquisitions and Sales
In 2024, the company completed the sale of its EMEA staffing operations for $110.6 million and acquired MRP, which contributed $124.6 million to consolidated revenues in the third quarter.
| Transaction | Amount (in millions) |
|---|---|
| Sale of EMEA Staffing Operations | $110.6 |
| Acquisition of MRP | $124.6 |
Stock Performance
As of the third quarter of 2024, basic earnings per share were $0.02, down from $0.18 in the same quarter of 2023. Diluted earnings per share were also $0.02 compared to $0.18 the previous year.
Outlook
Kelly Services continues to adapt its business model in response to market demands, with a focus on optimizing operations and expanding service offerings in key growth areas.
How Kelly Services, Inc. (KELYB) Makes Money
Revenue Streams
Kelly Services, Inc. generates revenue primarily through the following segments:
- Professional & Industrial
- Science, Engineering & Technology
- Education
- Outsourcing & Consulting
- International
Financial Performance Overview
In the third quarter of 2024, Kelly Services reported consolidated total revenue from services of $1,038.1 million, a decrease of 7.1% compared to $1,118.0 million in the same quarter of 2023.
For the year-to-date period, total revenue from services was $3,140.7 million, down 12.8% from $3,603.5 million in 2023.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change | Year-to-Date 2024 Revenue (in millions) | Year-to-Date 2023 Revenue (in millions) | % Change |
|---|---|---|---|---|---|---|
| Professional & Industrial | 370.4 | 378.0 | (2.0%) | 1,086.5 | 1,171.4 | (7.3%) |
| Science, Engineering & Technology | 405.2 | 295.7 | 37.1% | 1,026.7 | 903.5 | 13.6% |
| Education | 142.1 | 128.1 | 10.9% | 683.1 | 583.9 | 17.0% |
| Outsourcing & Consulting | 121.0 | 114.1 | 6.0% | 346.0 | 342.4 | 1.1% |
| International | — | 203.0 | (100.0%) | — | 604.7 | (100.0%) |
Gross Profit and Earnings
Gross profit for the third quarter of 2024 was $221.7 million, a decrease of 3.0% from $228.5 million in Q3 2023. The gross profit rate increased to 21.4% from 20.4%.
Earnings from operations for the third quarter totaled $2.6 million, compared to $0.1 million in Q3 2023. For the first nine months of 2024, earnings from operations reached $41.6 million, an increase of 144.5% compared to $17.0 million in 2023.
Segment Performance
The following table summarizes the performance by segment for Q3 2024:
| Segment | Gross Profit (Q3 2024) (in millions) | Gross Profit (Q3 2023) (in millions) | % Change | SG&A Expenses (Q3 2024) (in millions) | SG&A Expenses (Q3 2023) (in millions) |
|---|---|---|---|---|---|
| Professional & Industrial | 66.5 | 69.1 | (3.8%) | 56.3 | 63.4 |
| Science, Engineering & Technology | 99.1 | 68.0 | 45.5% | 74.1 | 47.3 |
| Education | 19.7 | 19.8 | (0.2%) | 23.0 | 22.3 |
| Outsourcing & Consulting | 36.4 | 41.5 | (12.2%) | 34.1 | 40.0 |
| International | — | 30.1 | (100.0%) | — | 28.7 |
Cash Flow and Financial Condition
As of the end of the third quarter of 2024, Kelly Services had cash, cash equivalents, and restricted cash totaling $40.4 million, down from $126.5 million at year-end 2023. The company's net cash from operating activities was $11.9 million for the first nine months of 2024, compared to $33.4 million in the same period of 2023.
Trade accounts receivable totaled $1.2 billion at the end of Q3 2024, with a Days Sales Outstanding (DSO) of 64 days.
Market Strategy and Future Outlook
Kelly Services continues to adapt its strategies to enhance revenue through acquisitions, such as the acquisition of MRP in May 2024, and divestitures, including the sale of its EMEA staffing operations in January 2024. The company is focused on optimizing its operational efficiency and expanding service offerings across its segments to drive future growth.
| Key Financial Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Earnings (in millions) | 31.2 | 25.0 |
| Basic Earnings Per Share | $0.86 | $0.68 |
| Diluted Earnings Per Share | $0.85 | $0.67 |
| Dividends Paid Per Share | $0.225 | $0.225 |
Kelly Services, Inc. (KELYB) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Kelly Services, Inc. (KELYB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kelly Services, Inc. (KELYB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kelly Services, Inc. (KELYB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.