Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 81

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 realignment, transaction, executive transition, and restructuring and transformation charges—and excluding depreciation and amortization—SG&A expenses were flat to the prior year.

The gain on sale of EMEA staffing operations relates to the completion of the sale in January 2024 in which we had recognized a gain of $11.6 million as of first quarter-end 2024.

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Gain on forward contract of $1.2 million represents the gain recognized in the first quarter of 2024 for the settlement of the foreign currency forward contract in January 2024 that was entered into in 2023 relating to the sale of the EMEA staffing operations.

Income tax expense was $1.8 million for the first quarter of 2025 compared to $4.0 million for the first quarter of 2024, with the decrease primarily related to changes in pretax income.

30 

Operating Results By Segment

(Dollars in millions)

First Quarter20252024% ChangeRevenue from Services:Enterprise Talent Management$534.0 $524.1 1.9 %Science, Engineering & Technology322.4 231.6 39.2 Education309.0 289.9 6.6 Less: Intersegment revenue(0.5)(0.5)(10.8)Consolidated Total$1,164.9 $1,045.1 11.5 %

First Quarter Results

The increase in ETM revenue was driven by the acquisition of Sevenstep, the MRP talent solutions business, as revenue excluding the acquisition was flat to prior year.  Excluding the acquisition, revenue from staffing services decreased 1.8%, which was offset by increases of 1.8% in outcome-based services and 3.0% in talent solutions.

The increase in SET revenue from services was primarily driven by the acquisition of MRP staffing and outcome-based solutions businesses.  Excluding the acquisition, revenue from services decreased 7.2% primarily driven by declines in hours volume in our staffing specialties including the impact of changes in demand related to U.S. federal government.  Excluding the acquisition, revenue in our outcome-based services decreased 3.4%.  Permanent placement fees decreased, reflecting continued lower market demand.

The increase in Education revenue from services was driven by increased demand for our services as compared to a year ago, reflecting the impact of fill rate improvement and higher bill rates, partially offset by the impact of weather-related school closures.

31 

Operating Results By Segment (