Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 71

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 $25.2 Average shares outstanding (millions):Basic35.0 35.4 Dilutive share awards0.5 0.4 Diluted35.5 35.8 Basic earnings per share$0.16 $0.71 Diluted earnings per share$0.16 $0.70 Potentially dilutive share awards are related to deferred common stock related to the non-employee directors deferred compensation plan and performance shares for the first quarter of 2025 and 2024 (see Stock-Based Compensation footnote for a description of performance shares).  Dividends paid per share for Class A and Class B common stock were $0.075 for the first quarter of 2025 and 2024.In November 2024, the Company's board of directors authorized a $50.0 million Class A share repurchase program that expires on December 2, 2026.  During the first quarter of 2025, the Company did not repurchase any Class A shares. A total of $40.0 million remains available under the share repurchase program as of first quarter-end 2025.

11. Stock-Based CompensationFor the first quarter of 2025, the Company recognized stock compensation expense of $3.7 million and a related tax benefit of $0.3 million.  For the first quarter of 2024, the Company recognized stock compensation expense of $2.8 million and a related tax benefit of $0.7 million.Performance Shares2025 GrantDuring the first quarter of 2025, the Company granted performance share awards associated with the Company’s Class A common stock to certain senior officers.  The payment of performance share awards is contingent upon the achievement of specific revenue growth and EBITDA margin performance goals over a stated period of time.  The maximum number of performance shares that may be earned is 200% of the target shares originally granted.  These awards have three one-year performance periods: 2025, 2026 and 2027, with the payout for each performance period based on separate financial measure goals that are set in February of each of the three performance periods.  Earned shares during each performance period will cliff vest in February 2028 after approval of the financial results by the Compensation Committee, if not forfeited by the recipient.  No dividends are paid on these performance shares.A summary of the status of all nonvested performance shares at target as of first quarter-end