KELYA - Earnings call transcript Q2 2020

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Operator

Good morning and welcome to Kelly Services Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the meeting over to your host, Mr. Peter Quigley, President and CEO. Sir, you may begin.

Peter Quigley

Thank you, Brad. to Second welcome Conference and everyone, Kelly Quarter Services Call. Hello, Olivier on Chief the me Thirot, call With is our Financial Officer. I'll impact of the by reviewing Kelly's call in second start business quarter. COVID-XX the on the and taken we've available impact financial to mitigate The steps actions taken to we've on its our position upside. capture highlights us performance our that morning's were Olivier will of this release. walk announced earnings through the quarterly today in crisis. demand what we're opportunities seeing and customer how share of growth Kelly then I'll during terms this pursuing is in some QX. on provide will Olivier perspectives And ongoing a on including solutions finally, an next what's update I'll conclude journey with for Kelly, provider. specialty our becoming towards talent we pleased continue today's despite making I'm about discussion. disruption we on progress the as our strategy pandemic, some that conclude say solid provide which caused to I'll by details additional

are precautionary to suspension took Amid with the protect and execute team, of economic of for reductions is labor me actions by included temporary on for reduced spending. the company monitoring to us. impact growth. sheet continued and of did customer last? unprecedented impact lightly the sacrifices. and on parameters others, retirement QX. and to hours redeployments acknowledge furloughs underway, uneven that downside the senior for last take how than moves QX shared temporary challenging long to that into discussed market and the will of economic Board be we started These I'd for shareholders The uncertainty everyone believe compensation Now throughout earnings improvements regions, their shared the quarter and line measures worst quarterly the focus pandemic. and in call continued the it to regions, will like reduced coming we've severity judicious. and and dividend to salaried the resulted and more suspension to be and closely they community, Kelly as capital call appears most significantly in progressed, the I the though recovery match opportunities impact employees, months in in Kelly caused these thought How more let's balance behind in top defensive gradual accounts, in mitigate for employees likely full employees We've board we ahead. results discipline. turn they and pay the of As for our and the lower not COVID-XX leadership duration crisis These be go pay offensive It's several it proved more closures reductions downturn, widespread this ongoing it speed to are deep for resulting previously, sacrifices quarter's been how this the present our our and time the I when although weather few our some quarter's and reduced mattered us some The reduced themselves economic give two Directors, some of flexibility months demand environment, Kelly a significant the ago. second of and

decisive speed, did of so execution in our So us management and operational QX served expense agility well plans. and

several from place. our protocols past at already decisions pandemic When moved and reliance and and technology in remote organization being hit, We IT offices, work aimed to several fronts, headquarters. our over a in to and enabled the in we these to that first, a and a turn for overall earlier and a few us fully minutes. agility of agile it creatively model transitioned our and cover talent opportunities networks regular quickly robust environment. declines the our But we the in had remote about intentionally I'll to challenging more meant This supply customers. workforce more share systems to the have safety Olivier financial employee years, branch to anywhere and able I'll have even were established on recruiting reduced QX of results. Over ready demand work remote on mortar specifics face serve enabled of reasons at speed we capture brick seamlessly progressive a new

Olivier Thirot

and you, good Thank Peter morning everyone.

SEC performance. the me include Please we our during made let company's any call. the forward-looking for highlights, and expectations factors obligation may made future of statements to for actual a QX comments could could the that materially about by no differ from our Q&A filings call, description have those the including performance. future Before that remind Actual update this results refer risk to on this comments our the suggested statements influence you

our the addition reported certain basis, certain discussed items our be In during non-GAAP discussion on will adjusted call, financial on data operations. designed an the in on and of adjusted an give into to insight trends basis, measures

the provided our quarter slide available in on We website. on is second information which have more performance our also deck,

unfavorable duration As Peter reflect the the positive QX and impact year Revenue and from the the of basis crisis reflect impact our temporary and prior of on both disruption full demand economic pandemic stimulus of the mitigation COVID-XX COVID-XX in talent in in the results resulting our impact the and actions impacted Europe. $X quarter. the expense billion, also resulting foreign XXX from the XX% US just activity a of customer availability pandemic second government impact down exchange. the including quarter mentioned, impact results point and assistance one-time of supply talent. and The of limited the The totaled and

and or year-over-year demand experienced the most QX, response May. impacted and with than XX.X% the April of workforces closed entered and in facilities by consistent their customers XX.X% lower declines March. declined quarter of in some our end our from constant strengthening as staffing. Americas has June quarter and currency improvements a the did we to see rate, as in closed in reflect response was exit we came the These protect decline business districts of directives primarily US end to particularly revenue government crisis to We progressed school the education As as of

move were we the by skill unemployment the QX quarter, in related enhanced reduce especially business. as US pool through of sets concerns As impact revenue COVID-XX also of the impacted talent talent in some benefits and supply constraints safety results commercial the our in available our

of most each at education on segment. which demand COVID-XX given the of the the Looking and the down segment The and the of manufacturing in sets decline XX% first reflects the a continuation staffing international a impact revenue impact, the larger were basis, skill lower sector on staffing in Americas within reported declines the pronounced XX% began quarter. reliance revenue

quarter. segment our with resilient GTS the for revenue Finally was in decline X% most an the

fees as industries automotive Kelly center Connect, our remote negatively strong. remained and energy sciences customer call certain the our placement deprived from Americas XX% impacted, Overall life were demand customers fees time and down gross Permanent profit While was impact staffing such specialty increasing hiring. services outcome-based were declined economic XX.X%. international uncertainty for down staffing as in has and the full year-over-year, of as

three XX.X% of the rate gross was permanent also partially when up driven offset employee of points, about The of placement XXX This of relief factors. basis by the basis and stimulus The prior quarter the and rate by impact points XXX of costs Our increase impact government year. compared related fees. lower second was primarily to lower profit impact the improved pandemic mix. product was

mitigation expense compensation SG&A performance-based the expenses were in end the government we in these adjustments down including starting and retain The to decline the the year-over-year. talent, XX.X% temporary pandemic While April has the ease actions critical been discussed, and early to helpful also stimulus expenses and lower generally benefits in of relief crisis temporarily took Peter compensation quarter. impact economic third expenses. reflects incentive the allowed us

while In our the seen benefits we period. we to partner in to avoid capture addition, ability quick the XXXX cost now during in been recovery jeopardizing with react actions we to customers pandemic from the the growth and deliberate have crisis, reduction to have been QX prior our to have we actions our to took and

for operations QX $XX.X quarter second compared million. earnings to the was reported of earnings reported million Our $XX.X from XXXX

on charge, investment operations QX also to Our QX on earnings XXXX and $XX.X for before items QX those sale XXXX unrealized assets included an year. XX% versus million tax restructuring basis include declined adjusting our gain by from gains earnings after adjustment holdings. of like-for-like equity earnings XXXX Kelly's our so the the a on in and last personal losses

of expense compared a the For below million. $XXX,XXX gain the to $XX.X on Persol quarter, to million non-cash second operations year. the gain income line XXXX are expense compared recognized item. was stock, These Income common pretax prior separate our million a tax as earnings in recognized we from tax gains our for quarter $XX.X pretax $XX.X

earnings Persol of favorably earnings some to effective gain on impacted on provide was Persol a share impacted some X%, positively share per reported share EPS per In an better for gain XXXX. tax finally understand the underlying on XXXX, adjustment me assets. of charges. of XXXX as for additional $X.XX the QX on a and to to rate deferred stock, for of earnings per a compared compared XXXX decline And in assets the $X.XX tax common let share by sale was period order second trend a per recognition mostly XX%. by was QX share earnings offset benefit one-time $X.XX expense by restructuring Our XXXX, Adjusting in items, EPS tax of quarter In from was these XXXX information. $X.XX gain stock. the was the to per in was earnings, current quarter

the to was down compared a moving $XX quarter ended ago. the $X at facilities. We Now million from to XXXX. $XXX totaled our with credit end US That million zero, no year year Cash balance sheet. on nearly borrowings million

impact cash the working as of during in quarter. primary declined receivable balances reflect revenues Our the accounts capital, reductions

increase capital debt uncertainty, this opportunities. $X.X to manage have of barrier days billion cash XXXX working and available closely we economic recovery days, ensure year XX% As and to advantage future navigate to the four year-over-year. Global end we that decreased three market our Accounts last the capitalize of the days was of year. growth XX same from was and receivable and we'll on DSO economic period take an to of continue

reflect two increase experienced pandemic. the of an does DSO, The a main not are a trends increase seeing receivables. have in does it the of deterioration result of we quality reflect as our we While

cash taking advantage customers payment terms to manage certain are efforts are us. and full with their their First, making own of flows

in there our Second, payment proportion been generally who resulted has the of longer mix terms. of enjoy customers business shift which greater has large a business result with crisis, a in as a

related customer I'll at ends cash flow the end school cash closing in had a But as in QX seasonal historically to of end continue resources to conditions. year respond quarter, the second and the $XXX collection the decline have million our we impact COVID-XX of addition, In XXXX. free our period given the revenue In for in quarter quarter, have school education payment XXXX. We'll seasonal first free that a in June. ensure the the happened teams to in the at closely reduction cash the monitor earlier flow million with generated of our DSO in necessary of we current patterns to compared $XX same flow in

with costs benefited conditions. the free we economic declined free collect an We continue As flow due to line market our generation of from we've payroll as the cash during period cash in I mentioned flow current downturn, receivables to initial demand. while generated

also related took economic of to as stimulus. the certain part We defer payments COVID-XX of tax advantage ability

monetized In Peter. you, existing an of tax And cuttage asset addition, part back now, certain as [ph]. receivables to we monetization

Peter Quigley

educators, started we're sets to margin areas resilient. and by that high product into that clear to higher required resilient contact up ground we that expect COVID-XX clinical line delivered earlier encouraged in specialties quarter Thanks ramping trials available areas more observations strategy our quality now supporting I and insight office increasingly significantly using be on more. demand, give specialty scientist the up to us and muted agents, talent coincidence geography, and we us stepped Kelly's skill skill unemployment is where and agility exited than It's professionals, has logistics QX, proven mentioned agents, we learning ahead sets. center better more industry, Olivier. taking operational the no and months variable quickly, although Thanks, have remote our we by the We're some it which

wins prevent to in-demand and businesses an talent pandemic. skill these fill and customers, workers has also to agencies encouraged We are creative the demonstrated we spread The community demand the placed jobs, this and supporting health been from our Kelly existing agile Overall, roles quickly of certainly strengthening to flexibility public of offset provide ability these a and more his guests are to keep tracing declines, pandemic set don't recoveries but response of is has customer the quarter's we thousands skill we contact Similarly, close as and overall for that solid provide temperature thoughts. indicative new pipelines, of eye as signs new of for trajectory are checkers COVID-XX. demand sets by results as level company employers work the will screening the becoming. now virus. the remains Olivier, uncertainty new the on and business new while some at continues.

Olivier Thirot

Peter. Thank you,

early scenario the it, planning full stages our As and the year mid-term than we we near conditions guidance. are continue economic in On now crisis May undertaken a while I and early of had months previously announced more our the in in four be into described that we highly to call mid-April, we uncertain. issued withdrew

the demand have based updating for of most economic the economic These [ph] scenario considering the of and of with cycles in confirming response our well align recovery, The resurgence our We of economy on variety subsequent scenarios, repeated of infection scenarios slower continued our of our recovery. duration longer planning. recent included the points priorities. as possibility a and planning contraction with plans as and in speed the that also data and are rate, subsequent reopening

forecast customer as predictive planning. as inform we utilizing and terminal In base and scenario activity well discussed, metrics addition are to feedback the economic Peter that to our talent

review to and covenant flows debt continue impact earnings, the resulting on cash We metrics.

We the of and flows advantage capture we periods opportunities subsequent our growth and of adequate test this of the and take and to growth. remain that point, we weather have crisis, resources to stress updated cash debt have covenants and confident financial economic at to emerging recovery liquidity

that where but be we perspective the are on Given we'll guidance in not third quarter. have some the cycle, determined provide providing we we'll

the trends behavior. current understand of results, be demand to While current they may not level future buying customer of predictive are helpful and

As mentioned the Declines are declines industrial has heavily and across segments trends. subsequent our on the impacted. my in results, in not pronounced of quarter remarks were been neither have Americas even pace the second been business revenue education improvements staffing in where more light revenue and

International and quarter. in trend revenue second on down in dependent reflects declines June America will Any was significant education decline staffing positive recovery in year-over-year and the Our the education line excluding revenue momentum. was which but reflects June-over-year Europe be rates revenue second are barrels for on school exit XX% Education QX with staffing reopening slow plans. across our quarter. down XX%,

also the are generally moderated QX trend support like industries was some GTS GTS IT However, business customer exit specialization operating trends The for date remote to in and their bright line we stable. have segment spots work in demand many do essential begun resilient and call a finally, the the has customers has facilities. in where has to Russia center rate remote And reopen most or been impact. as our with

pronounced GP during noted could I remarks we currently As of employee from that expect and expect my don't degree to more be related the we we benefit a on continue always QX even costs to in stimulus, are would government subject in variability rate pandemic. QX the did which certain

have in response with SG&A We taken sign not pressure to definitive of off and work yet our expense Peter we to seen the current have some to as closely levels discussed, And respect advance in due crisis. customers the margin material continued to with environment. steps both and any have

our our If entirely line cost needed, be the decline we'll made with quickly to able beginning results. contradictions, QX revenue one expected visible from take the We'll and change our offset stemming QX year-over-year planning. While financial earnings further with may we be that with other monitor mentioned not conditions crisis. to align announcement. consistent significant to steps top continue in structure I will take have we actions

specialty information structure to details his unit Kelly let milestone and recently For the you segments important be align Peter give business implemented. new on we'll we our result concluding QX, with that operating in more reporting financial thoughts. new I'll

Peter Quigley

are Olivier. and XXXX quarter, our confidence, in and Kelly ability talent true supply our employees we for Equally and character important, from was fair treatment in as a also QX environment stands know what's confident systemic inclusion, that times we is remain talent improve. well for for Kelly's and this challenging amid are unwavering. business I our growth calls unchanged. up to tumultuous risen that but economy reveal are positioned in of a Thank shared crisis identity of the all. who equity it's for We you, the our next crisis company and painful remains previous moments that the we to stemming serve have have in opportunity racism customers We and society, occasion. customer and

that specialization bold inorganically. We QX. we as step pursuing out path closed notwithstanding our external strategy we this a are both organically and I'm on towards headwinds pleased took aggressively forward

As Kelly and Kelly now as is Kelly previously our OCG Technology, distinct of and Kelly X, known as organized chosen International. Science Industrial Engineering Commercial, business July Kelly based specialties, five units Education, Professional Kelly and on

seen proved during grow in as resilient. modern more and the to skill technology on office enhancements our our focused upgrade more are we completed Today, platform and planned specialties to front-line We've pandemic, positioned of best-in-class employees. further organizations thrive. sets and other schedule certain and better already be out this our to margin productivity to of the also capture several We high front the need state-of-the-art business recruiters playing

positive parts working our are of actively in business. we many toward and We future see momentum growth

talent this into we're strategy. our essential the transformation to talent Kelly down doubling a specialty pursues As on company, steadfastly

improve. our Assignment five QX, and for years our highlighting rather during companies retreating in to On affirming our the We've investment We sets, we value, in safety, in waiting services skill always promise. turned well-being, on to right It's array the many and the talent talent also to and In voice first the Kelly globe volume areas reintroducing commitment specialty around to television in than new of are marketplace up brand. markets for for things time the refresh do bold five-point a COVID-XX our our with thing launched stand spots opportunity. and select talent

and I'm of our all larger very that connecting evidenced by bolder teams, of Annual our I'd Kelly business, now is Firms our their of Kelly and and customers, how ranking with QX as Forbes Directors open of share X the for Kelly unlike our proud internal purpose attracts to indicative on it in of nearly their any voice fresh Board US. like XX work years to in Professional navigated our center. we've Brad, seen the a quarter can attention you our List the Our to shareholders our call and thank front Recruitment of support. through people Number assignment, on talent questions. during Best was

Operator

and go ahead. first Thank Capital. the you. we'll Noble to [Operator Instructions] Gomes JE go line with Please of [ph]

Joe Gomes

added I in sure points Gomes. This XXX morning. basis you here The the government stimulus I gross just heard the make is quarter. profit roughly to Good properly. Joe to a want

Olivier Thirot

that basis our mention and if we to I I XX mix did complement basis Yes, XX improvement. have basis related it's as points then XXX US and XXX and add about points, basis say about from costs I you for, employee points structural about would the points Europe said,

Joe Gomes

Okay.

because starting school - be September, August, today, there. as for typically Northeast schools as segment showing to of that's July just we segment? of in some the the months of where the of get little on school, on doesn't until with given are not an here quite August to idea demand seasonality education true. back the I'm Or would I'm lower some here a start the trying my On but you school on back bias generally little and

Peter Quigley

of of the to the starting off see fulsome end June Yes. more July. in of school openings the US, we normal because school uptick staggered across in environment Joe, the and August see we in towards into begin significant September. districts Again, summer and in fall the then months, a year with

the the that's normal of business. education cyclicality So,

Joe Gomes

what guess Okay. to is, My to may terms it reopening or now because of schools seem right be not of out read tough it's any consensus may there a doesn't one be. type in of

hearing some on to you're as color back there might guys what environment. so to the school what trying your Just what get seeing you or or more far from out be to expectations

Peter Quigley

great But doing remote-only a going we're and of half And for seeing for our given deal on among a have they given go. representative it's of districts that is environment, direction And pretty question, I'll those about on-site. declared what customers. XX schools are among what decision, people, as a which a hybrid mix a use split for pandemic. Yes, I those not proxy going of they're then as lot Top is handful the other that's that XX, which school top seeing other the the majority, Joe. school we're to our mind there open districts have are made the to and of a with a the And think online half it's still evenly between among yet

Joe Gomes

there, does everything of that to able business own the staffing for out you're does how then your you're available house; you play And remote? for if your opportunities just that out lessen And do going guys?

Peter Quigley

the between onset of seen, pandemic pandemic. Well, we've been that teachers today but on-site, it's prepare with remain sure school time remote we're which to to the will make that will work or districts and be and whether satisfying for our continue even demand the using teachers, the the during the to

the retirements, there in are teacher own about concerned are seen of teachers press their reports obviously have that accelerated may You safety.

award But hard district as QX. for to going there record to So the to positive districts predict and in had even terms be you QX it wins our compare continuing forecast very I our it are we in and during and uncharted territory, weren't a school situation. services of would to demand XXXX contracts is we so know, know, recently the track when in when comment that it's precisely. pandemic We're I school think Kelly you

Joe Gomes

Okay.

Now, ask then in more, one I'll back queue. let me get

you rest Any $XXX of would cash, sizeable no year? debt. So, for on you any appreciated. with of cash [indiscernible] sheet million to ended clarity plans this continuing and quarter build cash be that the the the for balance or there Do that's

Olivier Thirot

So, of of to $XXX have about of debt cash million you're right say about $XXX we million capacity. plus shy

inorganic in industry It's downturn. balance to normal basically balance You fund of are some is on ammunitions initiatives. during we economic in whether going $XX each mode, top like, how is last sheet. the from is working downturn, is available the our a recovery because this there capital going on strong some year. you this versus that depending defensive to areas are is top balance course, and to of a in go going going On recovery. to sheet know our give capacities start and we that no be to quickly our cash offensive expectations a economic course, And to have especially pattern for is that, see of some us a the cash continue to first recovery of of up, to year-to-date a sheet switch flow, But our used funding very what phase it's having leverage of where and on course, you look QX an have of with free $XXX confirming near organic to cash needs we debt strong recovery see course, this or the about an term million of which accumulate million

Joe Gomes

queue. thanks. back Okay, I'll in jump

Peter Quigley

Joe. Thanks, right. All

Operator

line Steinke with Kevin And Research. the ahead. Please Barrington next, we go can go of to

Kevin Steinke

this to out thinking margin Hey, little being Kelly you be have out businesses in bit any of I performing about, been of specifically. a that specialty than average your some Sciences asking Life more by start Connects others better wanted mentioned Should and called resilient environment? you we higher

Peter Quigley

opened essential and pandemic. obviously well essential services, customers outcome-based are is also we the the of being up Science very so Particularly, provide there a in that as held well, other provide services in process business But quarter others Sciences, our the but do the Kevin. stayed Any of Life Life services, outsourcing that we number one. during in that during

Olivier Thirot

will Yes, QX. look outcome-based if up about our see so was business, that by you similar to XX%, revenue you at

in this due was area customer by to mix. GP up XX%, about Our

you is see very that would say there in we or traction in have So, I past. to QX this basically what year, have we the similar the of seen even

Kevin Steinke

Okay, branch that benefits from that's hold pipeline of any environment see things most or - to continued there? have pipeline just future or the of able kind is helpful. In are that completed potential kind you maybe of signs the US of restructuring this year been you last in terms growth put on with the

Peter Quigley

to the think One, organization, they customer those our prepared had restructure. a pre-pandemic, additional not from the reorganization the flexibility, steps on I during how it demand but mentioned position competitors remote of provided with which we're more ability some by pandemic. as our that going to benefits been quickly respond prepared its I well helped financial was financial and my mortar there's the and couple know to and brick company if has I the of than by Kevin, manage very reliance encouraged of quickly, were the remarks reduced in pipeline.

that not has As from demonstrated among agility the I which the also customers, I wins, that new existing challenges haven't potentially the pandemic but Kelly think of are other only to during competitors mentioned, we're to remote strengthening some respond of seeing recruiting.

enabled pandemic, knowledge So again, technology without are a of more we the and think we proof that those points that we the becoming are took, that agile moves organization.

Kevin Steinke

June strengthening? that in mentioned you you staffing. And the you What Americas most may saw Americas are be great. the areas saw within primarily strengthening where staffing in Okay, some

Olivier Thirot

two our see versus going bit for for then exit rate bit what I little to a understand marketplace. with Americas in go deeper the And start you Peter to staffing little commercial on on a is numbers going I'm we think to the average the quarter.

down was XX%. staffing roughly by Peter? Americas our the XX% and minus exit the quarter within was for commercial our So about rate minus

Peter Quigley

were when close automotive. the significant example, online for Kevin, or a either non-essential down, Yes. that in being services now shut on businesses are during Those was to quarter online. back impact fully

down So there And commercial and we're those we're to because the light non-essential services QX. well exposure most likely improvement are and with likely the were back we small as place in into to online. and demand areas rules shelter come seeing to see industrial and in shut medium-sized where beginning they're enterprises move US during as

Kevin Steinke

about we good. expense place back, in is, is here? frame should as rest of think that? initiatives revenue would the moving we And going move in management through that it or put rebound? expect coming QX is Just as costs how the Okay, how continue year forward you Are to you the we should

Olivier Thirot

for and use our As to adjust recovery with I flexibility I base, that called shared looking are taken at we initiatives average, have ratio mentioned, including be is several the you. like I cost especially everybody with. familiar Peter that On the we have think scenarios, numerous to QX, we what has always-- should with

in at expect this XX%, I recovery numbers XX% we ratio good Our and similar would pretty if be say. more recovery QX. QX, in probably ratio to so not around about in at least QX And was

Kevin Steinke

for specialty opportunities or now, seeing know, pursuits you inorganic lastly your just does opportunities environment. those mentioned M&A a for the then have in they pursue now? as slowed, to And give thanks. What you just you pipeline more us stand continuing look Okay, me, are flavor this aggressively strategy

Peter Quigley

Pipeline not in weeks, off late by Kevin, we efforts at But in uptick saw proactive hit own evaluating a we June, nice a any in especially pause we July, Yes, haven't our specialty for continue dramatic probably the we've significant activity. strategy. last to opportunity seen March, in speaking we few a our the have pre-COVID properties April, Again, on to, levels is starting uptick. that seen provide early means. And Kelly to an late inquiring, drop advance think May.

that's frankly, we've I think, can while pandemic, the getting meetings I how So a normal. remotely, to management to of the of can leaning and that is we're when fact industry into advance wouldn't to deals I management new I would you pretty do do think that actually and things they think fact pre-COVID, because adjusts used I well we said meetings online the it during people prefer had this the were couple have and

Olivier Thirot

more And well. passive what more and looking what meaning more market we at active call opportunities proactively as at call candidates, candidates, we on potential looking are coupled with we

Kevin Steinke

That's great. had I all Thank now. Okay, for you.

Peter Quigley

Kevin. Thanks,

Operator

the Instructions] of can ahead. Please go line [Operator back Gomes. to go Joe We

Joe Gomes

COVID including free if of had online One training certification the had quick I for about some you follow may, here, responses your the talked guys program. and you implemented up

has Just was on that your the wondering uptake pool? expanding in candidate you helped and how retaining that at either maybe or all

Peter Quigley

what uptake of I other point with connected a Joe. we during been But about we've expected, how things think I our talent would the has summer. of couple to the

as ongoing that education as training to positive time to training kind working spent our lot Our had on focused also to any business their we're for safety. to but teachers really of them with contact prepare well scenario. assure meetings their reaction a that working in teachers maintain our of We

talent. of this all our focus on it think our concentrating talent by on during outreach I across business has been think received our represents I pandemic well our So and

As I them differentiation of long-term going what's and with to that journey my think to that's versus some I competitors. remarks talent mentioned in for committed their having during Kelly our a we're relationship some determine create helping among prepared next

just effort about a in excited our So underway are that Kelly. the the emblematic think larger response we're efforts to and I of pandemic at

Joe Gomes

thanks. Great,

Operator

Sidoti next, go can to Company. the & Josh And with ahead. of Please go Vogel we line

Josh Vogel

morning questions. I forth my a of between for couple have and bouncing back I Hey, been taking Thanks calls. apologize. guys. good

that is of I repetitive, but any you Olivier, - I'm sorry this caught in if was thought is said I number? correct XX% that education the So down QX,

Olivier Thirot

Yes, that's correct XX%, XX%.

Josh Vogel

were of wanted to reopened? bit know expect you QX if I what good little say of And commentary a you Okay. incremental and I idea exit schools think especially to kind QX around you that is about June get the Did improvement consolidated rates of feel. or a just there are giving that

Olivier Thirot

numbers with few I I to think would then start Peter complement. a going and is

was seen minus versus average in we July line what we about year XX% the currency. where see similar for and progressive in was the exit especially constant our commercial the improvement Americas a of for XX.X% our the ended have constant we ago. up in from from we to So seen have full really was June at slow XX% improvement overall in currency business quarter The XX%. our the minus decline rate but quarter What is coming quarter in top average in June improvement main staffing on

Peter Quigley

logistics, has I now seeing area. and finance automotive reopening, week-over-week growth businesses pandemic. sequential been are not any in and We're the particular seeing business We're the good resilient e-commerce, in through concentrated retail. pretty growth our mentioned it's Josh actually that

growth seeing and we the So pipeline. we're like

with on customers my we versus we're are and we the seeing we trajectory think to our as and because have keeping ratio so for continue are prepared win momentum an pleased these contracts in sure. recognizing periods mentioned prior are We let remarks, uncertain eye times I

Josh Vogel

you. to Thank five specialties. nice It's helpful. to That's transition see the the

in the good think we you're about could those of businesses coming seeing see five for June July? you of pillars of what rate when business. think be Is I of give investors those out that or exit to the it us possible the it specialties kind will

Olivier Thirot

new going at we Well, of as report we segments our QX. speak, to the of are end course with

going I is of course that around mean of to describing the for what them, would think is insight we the to we and I the We call value what we have manufacturing about course, each would business, more of sizing to revenue-wise engineering going I likely industrial, more during we and around business. we type Professional you and cannot we science, at QX quarter resilient, GTS as say call best what of able the you share is for technology shared based I to now on especially as you specialization ready with be much when now we restate, knowing are discussed today. have you because and well current be if some what are Education margin the are call to get and give them really But we of need our earnings professional. look profile. see clerical what say call. what

Peter Quigley

uneven. Josh, international the think and with steady growth thing slow of wins, only still work would and pipeline applies business outside new I other The existing I to three comments is the as education units. bit and a the customers about add the is as well

Josh Vogel

Thank least education. pivot a this at year this That's do extended of If A closed is seeing around we're and learning, have stay there? there to the through online schools great. presence you. end question you

Peter Quigley

the summer We we've seamless technology with - and we increasing work prepared to they're own be don't We actually the of be the on and that our have use our or an use that's eLearning technology to growing the presence teachers it throughout with should districts during that teachers would we trained school given a have it deploy, there. school the training of been and attention given the months will we four conducted that districts five pandemic. amount but

Josh Vogel

made stemming little notable bit. it gears quantifiable shifting and I productivity any in in I but know know investments? gauge may seeing you've environment, a investments or improvements from And great. those this tough you Okay, are to be technology

Olivier Thirot

fully we tools are front this that think we implemented are I now glad around that and digital new or have implemented it. the Well, office

side, are tools have really environment starting to invest continue I Although fine new also, tune, some to we than started. It's of it's more the would the around say this yes. the on digital going measures technologies. beginning challenging we digital to end because in in

really on. time, so some target course, of we see are course are connect this term of bit trends really as a going we of project, efficiency, with especially second productivity, half is a to and little to how to second initiative. need to the think get we I going in good this plus the what were expecting of half But we I assessment of of But experience, assessment. need this a this customers of in of probably year little outcome disrupted on that this of year to talent and are outcome start make time speed environment an again an bit to share believe current

Peter Quigley

technology I queue the about Josh, has the if well matching would candidates, advantages in they communicating Anecdotally, new with them frontline the that received to terms candidates of are and you allowing very know will. very to in excited provides say candidates, been where it our

line. but anecdotally, improvements the So, to in confident we'll year, have that going we're more data later front see the we're in

Josh Vogel

right, All great.

this around I cash a maintaining this getting an the apologize, question you was Again but the pipeline if your balance but front feel you point? what Thank the is appetite dividend environment. acquisition very on see balance need in in addressed strong from to acquisition earlier around are impressive some at you sheet obviously either aggressive thoughts you. there or think I there, do where active reinstating and level comfortable a or a macro what

Olivier Thirot

stage cash one cash. more generate year-to-date need ago. are some free of the is $XXX million at fact QX our mindful flow course, an more but you that The key generating versus of question see. than cash that million to because It's a we early of $XX industry is, be our we basically point let's The a now downturn in is year

recovery a as available fact, on so this going but to our are need capacity on progressively million. course, to of we $XXX of cash, Of $XXX top million exact the is when debt some going we be clear having of come the cash debt is of have very to matter no

any we next the opportunities tag. is our would strategy I with fitting that point we coming So going months are inorganic, say at in If the see something not for time price wait when find we right at forever. some to in

what passive still call candidates. Peter explained marketplace it, to for going whether are they active I basically are think at are as and looking properties, on and or previously, we market very we go on the the we actively

a the still to On of in how environment. discuss would I going more That's the to very we we is dividend uncertain regularly. things side, assess number as something are step and going be us one are for evolving. speak, say what on and is get clarity on we course

reestablish we whether the to future. are mind are part going or you timetable not dividends, it's our near on ready we something of capital now precise is it's when have but allocation in of I we would a course in to So that yet give and say

Josh Vogel

talking you. I to questions appreciate my you, taking it's good always Thank for the clarity. guys, and

Operator

questions in No questions queue. currently. no Currently, [Operator Instructions] further

Peter Quigley

Okay, Brad. very I guess end the Thank we much. you can call.

Olivier Thirot

Brad. you, Thank

Peter Quigley

everyone. you Thank

Operator

this Ladies through for conference September Thank and XX:XX replay gentlemen, welcome. today will and running be midnight. at after You're you. available X,

the and XXX-XXX-XXXX can XXX-XXX-X. with our code at AT&T dial Those for Teleconference. numbers International using conference time by access AT&T for Thanks again, code entering any system XXXX-XXX-XXXX access participation today. parties the dialing your for or and does access You This the may conclude replay X-XXX-XXX-XXXX XXX-XXX-X. XXX-XXX-XXXX.

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Kelly Services (KELYA) 9 Aug 202020 Q2 Earnings call transcript