Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 83

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 83
---
 and amortization is primarily due to the acquisition of Sevenstep, the MRP talent solutions business.  Excluding the acquisition, expenses decreased 0.6% from the prior year primarily due to lower employee-related costs as a result of expense management actions in response to lower revenue volume compared to the prior year, partially offset by integration and realignment charges.

The increase in SET SG&A expenses excluding depreciation and amortization is primarily due to the acquisition of MRP.  Excluding the acquisition, expenses were flat to the prior year.

The increase in Education SG&A expenses excluding depreciation and amortization primarily related to increased year-over-year revenue levels.

The increase in Corporate expenses is primarily driven by integration and realignment charges in the first quarter of 2025.

33 

Operating Results By Segment (continued)

(Dollars in millions)

First Quarter20252024% ChangeBusiness Unit Profit (Loss)Enterprise Talent Management$6.8 $8.1 (15.4)%Science, Engineering & Technology13.4 14.2 (5.8)Education19.3 18.1 6.2 Business Unit Profit (Loss)39.5 40.4 (2.3)Corporate(15.9)(15.0)5.9 Gain on sale of EMEA staffing operations— 11.6 NMDepreciation and amortization(12.8)(10.2)25.4 Consolidated Total Earnings from Operations$10.8 $26.8 (59.8)%

First Quarter Results

ETM reported profit decreased versus the prior year primarily due to higher SG&A expenses, partially offset by higher revenue and gross profit.

SET reported profit includes $3.8 million of business unit profit from the acquisition of MRP.  Excluding the acquisition, the decrease in profit was due primarily to lower revenue and gross profit.

Education reported profit of $19.3 million compared to profit of $18.1 million a year ago.  The change was primarily driven by higher revenue and gross profit, partially offset by an increase in SG&A expenses.

Corporate expenses increased 5.9% over the prior year primarily driven by integration and realignment charges in the first quarter of 2025.

34 

Financial Condition

Historically, we have financed our operations through cash generated by operating activities and access to credit markets.  Our working capital requirements are primarily generated from temporary employee payroll, which is generally paid weekly, and customer