Exhibit 99.1

•Q1 operating earnings of $26.8 million, or up 34% on an adjusted basis

•Q1 revenue down following sale of European staffing operations; down 2.6% on an organic basis

•Q1 adjusted EBITDA margin increased 110 basis points to 3.2% driven by meaningful reduction in operating expenses resulting from business transformation initiatives and sale of European staffing operations

•Company expects further expansion of EBITDA margin from the planned Q2 2024 acquisition of Motion Recruitment Partners, LLC ("MRP") and ongoing transformation actions

TROY, Mich. (May 9, 2024) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2024.

Peter Quigley, president and chief executive officer, announced revenue for the first quarter of 2024 totaled $1.05 billion, a 17.6% decrease, compared to the corresponding quarter of 2023 resulting primarily from the sale of the company’s European staffing operations on January 2, 2024. Excluding the impact of the sale of the European staffing operations, revenue declined 2.6% on an organic basis reflecting the continuing impact of customers’ more guarded approach to hiring and initiating new projects or capital spending.

Kelly reported operating earnings in the first quarter of 2024 of $26.8 million, compared to earnings of $10.7 million reported in the first quarter of 2023. Earnings in the first quarter of 2024 include an $11.6 million gain on the sale of our European staffing operations and $7.9 million of charges related to transformation actions and the sale of our European staffing operations. Excluding those charges, adjusted earnings were $23.1 million in the first quarter of 2024. Earnings in the first quarter of 2023 included $6.6 million of restructuring charges and adjusted earnings from operations were $17.3 million. The European staffing operations were break even on an adjusted basis in the first quarter of 2023. Excluding the impact of the sale in both periods, 2024 adjusted earnings improved primarily as a result of lower selling, general and administrative expenses, partially offset by lower revenue and unfavorable business mix and lower permanent placement fees which resulted in lower gross profit.

Earnings per share in the first quarter of 2024 were $0.70 compared to earnings per share of $0.29 in the first quarter of 2023. Included in earnings per share in the first quarter of 2024 were a gain on sale and gain on forward contract, net of tax, of $0.31 partially offset by restructuring and transaction-related charges, net of tax, of $0.17. Included in the earnings per share in the first quarter of 2023 is a $0.13 per share restructuring charge, net of tax. On an adjusted basis, earnings per share were $0.56 in the first quarter of 2024, an improvement from $0.42 per share in the corresponding quarter of 2023.

On May 3, Kelly announced that it had entered into a definitive agreement to acquire MRP and expects the transaction to close in the second quarter of 2024.

“In the first quarter, we continued making progress on our journey to accelerate profitable growth notwithstanding continued macroeconomic uncertainty and industry headwinds. Our ongoing growth and efficiency initiatives increased Kelly’s adjusted EBITDA margin to 3.2% – a significant improvement of 110 basis points over the prior year and well above the company’s recent average,” said Quigley. “Our more streamlined and profitable portfolio of businesses is poised to realize additional benefits from the transformational acquisition of MRP. When completed in the second quarter, this acquisition will strengthen Kelly’s scale and capabilities and meaningfully increase market share across several key areas, which in turn creates exciting opportunities for future revenue growth and additional EBITDA margin expansion.”

Kelly also reported that on May 7, its board of directors declared a dividend of $0.075 per share. The dividend is payable on June 4, 2024, to stockholders of record as of the close of business on May 20, 2024.

In conjunction with its first-quarter earnings release, Kelly has published a financial presentation on the Investor Relations page of its public website and will host a conference call at 9 a.m. ET on May 9 to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Internet:

Kellyservices.com

Via the Telephone

(877) 692-8955 (toll free) or (234) 720-6979 (caller paid)

A recording of the conference call will be available after 1:30 p.m. ET on May 9, 2024, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 1646639#. The recording will also be available at kellyservices.com during this period.

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 500,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2023 was $4.8 billion. Learn more at kellyservices.com.

KLYA-FIN

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KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED MARCH 31, 2024 AND APRIL 2, 2023
(UNAUDITED)
(In millions of dollars except per share data)
																								%						CC %
						2024						2023						Change						Change						Change
Revenue from services			$			1,045.1			$			1,268.3			$			(223.2)						(17.6)			%			(17.7)			%
Cost of services						839.4						1,014.2						(174.8)						(17.2)
Gross profit						205.7						254.1						(48.4)						(19.1)						(19.2)
Selling, general and administrative expenses						190.5						243.4						(52.9)						(21.7)						(21.9)
Gain on sale of EMEA staffing operations						(11.6)						—						(11.6)						NM
Earnings from operations						26.8						10.7						16.1						150.2
Gain on forward contract						1.2						—						1.2						NM
Other income (expense), net						1.8						2.0						(0.2)						(8.8)
Earnings before taxes						29.8						12.7						17.1						134.6
Income tax expense						4.0						1.8						2.2						128.0
Net earnings			$			25.8			$			10.9			$			14.9						135.7
Basic earnings per share			$			0.71			$			0.29			$			0.42						144.8
Diluted earnings per share			$			0.70			$			0.29			$			0.41						141.4
STATISTICS:
Permanent placement revenue (included in revenue from services)			$			8.0			$			17.5			$			(9.5)						(54.2)			%			(54.4)			%
Gross profit rate						19.7			%			20.0			%			(0.3)			pts.
Adjusted EBITDA			$			33.3			$			26.8			$			6.5
Adjusted EBITDA margin						3.2			%			2.1			%			1.1			pts.
Effective income tax rate						13.5			%			13.9			%			(0.4)			pts.
Average number of shares outstanding (millions):
Basic						35.4						37.1
Diluted						35.8						37.4

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
						March 31, 2024						December 31, 2023						April 2, 2023
Current Assets
Cash and equivalents			$			200.7			$			125.8			$			111.7
Trade accounts receivable, less allowances of
$8.8, $8.4, and $11.0, respectively						1,152.9						1,160.6						1,438.5
Prepaid expenses and other current assets						83.2						48.9						82.3
Assets held for sale						—						291.3						—
Total current assets						1,436.8						1,626.6						1,632.5
Noncurrent Assets
Property and equipment, net						25.5						24.6						28.6
Operating lease right-of-use assets						46.3						47.1						65.0
Deferred taxes						318.9						321.1						301.9
Retirement plan assets						243.7						230.3						204.4
Goodwill, net						151.1						151.1						151.1
Intangibles, net						132.5						137.7						153.4
Other assets						40.6						43.1						51.7
Total noncurrent assets						958.6						955.0						956.1
Total Assets			$			2,395.4			$			2,581.6			$			2,588.6
Current Liabilities
Accounts payable and accrued liabilities			$			581.2			$			646.1			$			684.7
Operating lease liabilities						8.4						8.4						14.3
Accrued payroll and related taxes						165.9						156.2						275.9
Accrued workers' compensation and other claims						22.0						22.1						23.1
Income and other taxes						20.0						17.2						52.9
Liabilities held for sale						—						169.9						—
Total current liabilities						797.5						1,019.9						1,050.9
Noncurrent Liabilities
Operating lease liabilities						42.0						42.9						53.4
Accrued workers' compensation and other claims						40.9						40.9						41.0
Accrued retirement benefits						229.5						217.4						184.6
Other long-term liabilities						8.7						6.8						10.9
Total noncurrent liabilities						321.1						308.0						289.9
Stockholders' Equity
Common stock						38.5						38.5						38.5
Treasury stock						(53.1)						(57.3)						(35.3)
Paid-in capital						27.1						30.6						26.4
Earnings invested in the business						1,264.8						1,241.7						1,224.4
Accumulated other comprehensive income (loss)						(0.5)						0.2						(6.2)
Total stockholders' equity						1,276.8						1,253.7						1,247.8
Total Liabilities and Stockholders' Equity			$			2,395.4			$			2,581.6			$			2,588.6
STATISTICS:
Working Capital			$			639.3			$			606.7			$			581.6
Current Ratio						1.8						1.6						1.6
Debt-to-capital %						0.0			%			0.0			%			0.0			%
Global Days Sales Outstanding						58						59						59
Year-to-Date Free Cash Flow			$			(29.2)			$			61.4			$			(17.9)

    

    

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2024 gain on the sale of our EMEA staffing operations, the 2024 gain on forward contract, the 2024 restructuring charges, the 2024 transaction costs, and the 2023 restructuring charges are useful to understand the Company's fiscal 2024 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.

Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets.

These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1) Gain on sale of EMEA staffing operations represents the gain as of the first quarter-end 2024 as a result of the sale in January 2024.

(2) Gain on forward contract 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.

(3) Transaction costs, which includes employee termination costs and transition costs, incurred in the first quarter of 2024 directly related to the sale of the EMEA staffing operations.

(4) Restructuring charges in the first quarter of 2024 represent a continuation of the comprehensive transformation initiative that started in the second quarter of 2023 that will further streamline the Company's operating model to enhance organizational efficiency and effectiveness. These restructuring charges include $1.2 million of costs to execute the transformation and $1.1 million of severance. Restructuring charges in the first quarter of 2023 represent severance costs and lease and other terminations as a result of management undertaking actions to further our cost management efforts in response to the current demand levels and reflects a repositioning of our P&I staffing business to better capitalize on opportunities in local markets.