Q2 2024 Kelly Services Inc Earnings Call Transcript
Key Points
- Kelly Services Inc (KELYA) achieved an adjusted EBITDA margin of 3.4% in the first half of 2024, meeting their initial expectations.
- The company's education segment experienced strong growth, with revenue increasing by 22% year over year.
- Kelly Services Inc (KELYA) improved its position among the top 20 staffing firms in the US, according to staffing industry analysts.
- The acquisition of Motion Recruitment Partners (MRP) is expected to enhance Kelly's revenue growth potential and drive continued EBITDA margin expansion.
- Kelly Services Inc (KELYA) generated $55 million of free cash flow in the quarter, compared to $32 million in the prior year period.
- Revenue for the second quarter of 2024 decreased by 13.1% compared to 2023, primarily due to the sale of the European staffing business.
- The professional and industrial segment saw a 9% decline in revenue year over year.
- Permanent placement fees declined by 20% year over year.
- The gross profit rate on an organic basis declined by 100 basis points in Q2.
- The company's reported earnings per share for the second quarter was $0.12, down from $0.20 in 2023.
Good morning and welcome to Kelley Services' second quarter earnings conference call. (Operator Instructions) Today's call is being recorded at the request of Kelley Services. (Operator Instructions) I would now like to turn the meeting over to your host, Mr. Peter Quigley, President and CEO. Please go ahead.
Thank you, Greg. Hello, everyone, and welcome to Kelly's second quarter conference call. Before we begin, I'll walk you through our Safe Harbor language. As a reminder, any comments made during this call, including the Q&A, may include forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments, and we have no obligation to update the statements made on this call.
Please refer to our SEC filings for a description of the risk factors that could influence the company's actual future performance. In addition, during the call, certain data will be discussed on a reported and on
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