Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 27

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 in 2023, further enhancing our ability to deliver the full suite of Kelly offerings to large enterprise accounts. We also shifted certain customers from the SET segment to the ETM segment to support this integrated strategy. Also in the first quarter of 2025, we moved Motion Recruitment Partners’ Sevenstep business from the SET segment to the ETM segment as part of the broader integration of MRP. 

We also accelerated our progress on integrating MRP’s portfolio of businesses with our existing SET businesses. We initiated plans to modernize SET’s front- and back-office systems leveraging MRP’s leading technology stack. This will create a scalable, efficient, and integrated technology platform within SET that reduces complexity and enhances agility across the business. 

In addition, we implemented targeted cost-reduction actions to deliver additional structural improvements to our cost base. These actions underscore our commitment to enhancing Kelly’s profitability over the long term. In parts of our portfolio where customers are taking a more measured approach to hiring, we took action to align resources with demand. 

Together, our actions in the first quarter of 2025 reflect Kelly’s strategic progress, and our team’s ability to execute in any environment. These achievements reinforce our confidence in the resilience of our business, the strength of our operating model, and the expertise of our team – momentum we aim to carry forward throughout the remainder of 2025. 

Financial Measures 

Reported percentage changes were computed based on actual amounts in thousands of dollars.

EBITDA (earnings before interest, taxes, depreciation and amortization) and EBITDA margin (EBITDA divided by revenue from services) are measures used for understanding our ability to generate cash flow and for judging overall operating performance.  EBITDA measures are non-GAAP (Generally Accepted Accounting Principles) measures and are used to supplement measures in accordance with GAAP.  Our non-GAAP measures may be calculated differently from those provided by other companies, limiting their usefulness for comparison purposes.  Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Days sales outstanding (“DSO”) represents the number of days that sales remain unpaid for the period being reported.  DSO is calculated by dividing average net sales per day (based on a rolling three-month period) into trade accounts receivable, net of allowances at the period end.  Although secondary supplier revenues are recorded on a net basis (net of secondary supplier expense), secondary supplier revenue is included in the daily sales calculation in order