 Financial Highlights Q2 revenue declined 28.7 or 27.7 in constant currency Q2 operating earnings of 11.1 million, down 68.2, or down 50.4 as adjusted Q2 earnings per share of 1.04, down 50.9, or down 37.0 as adjustedTROY, Mich., Aug. 06, 2020 GLOBE NEWSWIRE -- Kelly Nasdaq: KELYA Nasdaq: KELYB, a leading specialty talent solutions provider, today announced results for the second quarter of 2020.Peter Quigley, president and chief executive officer, announced revenue for the second quarter of 2020 totaled 1.0 billion, a 28.7 decline, or 27.7 in constant currency, compared to the corresponding quarter of 2019. Revenues declined as a result of lower demand during the quarter as customers reacted to the COVID-19 crisis.Earnings from operations for the second quarter of 2020 totaled 11.1 million, compared to the 34.8 million reported for the second quarter of 2019. The 2020 second quarter results include an adjustment to restructuring charges, and the second quarter of 2019 results included an adjustment to restructuring charges and a 12.3 million gain on sale of assets. On an adjusted basis, earnings from operations were 10.9 million compared to 21.9 million in the corresponding quarter of 2019.Diluted earnings per share in the second quarter of 2020 were 1.04 compared to earnings per share of 2.12 in the second quarter of 2019. Included in the earnings per share in the second quarter of 2020 is a non-cash gain, net of tax, on Kellys investment in Persol Holdings common stock of 0.52. Included in the earnings per share in the second quarter of 2019 is 1.07 from a non-cash gain per share on Kellys investment in Persol Holdings common stock, net of tax, gain on sale of assets, net of tax of 0.23, and a 0.01 per share adjustment to restructuring charges, net of tax. On an adjusted basis, earnings per share were 0.51 for the second quarter of 2020 compared to 0.81 for the corresponding quarter of 2019.The impact of COVID-19 continued throughout the second quarter as closures and widespread uncertainty resulted in reduced customer demand and lower top-line growth, stated Quigley. Amid this unprecedented environment, Kelly initiated several quick and decisive actions to protect its profitability and liquidity and captured available upside in resilient, high-margin areas of our business. While we continue to closely manage the impact of the pandemic, were making steady progress on our strategy toward specialization. We stayed on schedule in deploying our new front office technology and were now organized as five specialty businesses based on the skill sets modern organizations need to grow and thrive. I believe these are important steps in setting the stage for a more profitable and resilient portfolio in the post-pandemic world. Im proud that Kellys teams have continued to advance our strategy during this stressful time while taking care of our talent and customers with speed and agility.In conjunction with its second 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 9:00 a.m. ET on August 6 to review the results and answer questions. The call may be accessed in one of the following ways:Via the Internet: Kellyservices.comVia the Telephone 877 692-8955 toll free or 234 720-6979 caller paid Enter access code 5728672 After the prompt, please enter A recording of the conference call will be available after 2:30 p.m. ET on August 6, 2020 at 866 207-1041 toll-free and 402 970-0847 caller-paid. The access code is 7745119. 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 factors include, but are not limited to, the recent novel coronavirus COVID-19 outbreak, competitive market pressures including pricing and technology introductions and disruptions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, the risk our intellectual property assets could be infringed upon or compromised, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing and services connecting talent to independent work, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates including PersolKelly Pte. Ltd., material changes in demand from or loss of large corporate customers as well as changes in their buying practices, risks particular to doing business with government or government contractors, risks associated with conducting business in foreign countries, including foreign currency fluctuations, the exposure to potential market and currency exchange risks relating to our investment in Persol Holdings, risks associated with violations of anti-corruption, trade protection and other laws and regulations, availability of qualified full-time employees, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, risks arising from failure to preserve the privacy of information entrusted to us or to meet our obligations under global privacy laws, the risk of cyberattacks or other breaches of network or information technology security, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology projects, our ability to maintain adequate financial and management processes and controls, risk of potential impairment charges triggered by adverse industry developments or operational circumstances, unexpected changes in claim trends on workers compensation, unemployment, disability and medical benefit plans, the impact of changes in laws and regulations including federal, state and international tax laws, competition law risks, the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to realize value from our tax credit and net operating loss carryforwards, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Companys filings with the Securities and Exchange Commission. Actual results may differ materially from any forward-looking statements contained herein, and we have no intention to update these statements.About KellyKelly, Inc. Nasdaq: KELYA, KELYB connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. Were always thinking about whats next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 440,000 people around the world, and we connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2019 was 5.4 billion. Visit kellyservices.com and let us help with whats next for you.MEDIA CONTACT: ANALYST CONTACT: Jane Stehney James Polehna 248 574-9800 248 244-4586 KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED JUNE 28, 2020 AND JUNE 30, 2019 UNAUDITED In millions of dollars except per share data CC 2020 2019 Change Change Change Revenue from services975.3 1,367.5 392.2 28.7 27.7 Cost of services 786.1 1,123.5 337.4 30.0 Gross profit 189.2 244.0 54.8 22.5 21.7 Selling, general and administrative expenses 178.1 221.5 43.4 19.6 18.9 Gain on sale of assets 12.3 12.3 NM Earnings loss from operations 11.1 34.8 23.7 68.2 Gain loss on investment in Persol Holdings 29.6 61.2 31.6 51.6 Other income expense, net 2.6 0.2 2.4 NM Earnings loss before taxes and equity in net earnings loss of affiliate 43.3 96.2 52.9 55.0 Income tax expense benefit 0.9 12.7 11.8 93.2 Net earnings loss before equity in net earnings loss of affiliate 42.4 83.5 41.1 49.2 Equity in net earnings loss of affiliate 1.3 0.3 1.6 NM Net earnings loss41.1 83.8 42.7 51.0 Basic earnings loss per share1.04 2.12 1.08 50.9 Diluted earnings loss per share1.04 2.12 1.08 50.9 STATISTICS: Staffing fee-based income included in revenue from services7.6 15.7 8.1 51.5 50.5 Gross profit rate 19.4 17.8 1.6 pts. Conversion rate 5.8 14.2 8.4 Return: Earnings loss from operations 1.1 2.5 1.4 Net earnings loss 4.2 6.1 1.9 Effective income tax rate 2.0 13.2 11.2pts. Average number of shares outstanding millions: Basic 39.3 39.1 Diluted 39.4 39.2 KELLY SERVICES, INC. 