Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 81

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 $(3.56)$0.85 Due to the Company’s net loss in the third quarter and September year-to-date 2025, potentially dilutive share awards outstanding, primarily related to non-employee directors deferred compensation plan and performance shares (see Stock-Based Compensation footnote for a description of performance shares) of 0.4 million and 0.5 million shares for the third quarter and September year-to-date 2025, respectively, had an anti-dilutive effect on diluted earnings per share and were excluded from the computation.  Potentially dilutive share awards for Class A common shares are related to deferred common stock related to the non-employee directors deferred compensation plan and performance shares for the third quarter and September year-to-date 2024.  Dividends paid per share for Class A and Class B common stock were $0.075 for the third quarter of 2025 and 2024 and $0.225 for September year-to-date 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 third quarter and September year-to-date 2025, the Company did not repurchase any Class A shares. A total of $40.0 million remained available under the share repurchase program as of third quarter-end 2025.

11. Stock-Based CompensationFor the third quarter of 2025, the Company recognized stock compensation expense of $2.6 million and a related tax benefit of $0.4 million.  For the third quarter of 2024, the Company recognized stock compensation expense of $3.3 million and a related tax benefit of $0.7 million.  For September year-to-date 2025, the Company recognized stock compensation expense of $9.8 million and a related tax benefit of $1.3 million.  For September year-to-date 2024, the Company recognized stock compensation expense of $8.5 million and a related tax benefit of $2.0 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%