KELYA - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to Kelly Services Second Quarter Earnings Conference Call. All parties will be in a listen-only mode until the question-and-answer portion of the presentation. Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time. A second quarter webcast presentation is also available on Kelly's website for this morning's call.

to meeting like host, to now Mr. would turn over the your I and Quigley, CEO. Peter President ahead. go Please

Peter W. Quigley

Thank you, everyone, call. Greg. Hello, quarter Kelly's conference second and welcome to

we safe through Before walk language. our I'll begin, harbor you

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

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

remarks our available Finally, that, I'll information quarter a presentation with with is Kelly's Kelly's financial the website. With in on results financial on about begin results.

quarter, second on stabilize in uncertain control we enterprises we focused the positive to to our though emerging among In life and with technology customers. can demand maintained navigate signs conditions. Large hiring, began continue market cautious particular, what as sciences approach to we a remained

model. to and GP. and our drive the helping continue commercial business delivery industrial and stabilizing The our meaningful new basis. the with leveled improvement pipeline and app locations quarter both combined demand network In clients mobile generate grow our P&I and of physical our time talent positive to in off Now reflects rate branch momentum localized staffing revenues strength to fill a sequential This and of trend business, on a enhanced the of Kelly benefits our of

to enterprise level, also largest customers our traction. offerings suite deliver the Kelly full our gained At of the to strategy

is beginning approach, largest improved with to with Within large wallet initial progress focus share in serve customers. which efficiency our we this gains both where operationalized effectiveness of have the This accounts, our we've customers. the we and enterprise drive

XXXX. helping remain as market and to are XXXX conditions. resilience line increased top the definitely line firms top margin laser-focused bottom the to initiatives to to latest position our U.S. growth, share the growth largest upon a from growth. Kelly's market with analyst by is share build the position greater navigating industry widest of Kelly Our rankings, we staffing convert our capture and XX improving This encouraging among to testament team's on uncertain developments its staffing firms Amid a through According in one ability growth of

This structural the month profitability. marks across X year anticipated undertook of the since you efficiencies to we initiatives drive improve significantly the we and shared Kelly with company's transformation impact

at attained margin X.X% the to we challenging we by initial market that X.X% an share of net this the benefit the adjusted I'm acquisition of soon time our of of SG&A. One the to steady MRP. expectations. Kelly first normalized later, margin half as reductions first year excluding cadence achieve message as sustained have that was year, range Kelly pleased driven conditions, Our X.X%, EBITDA of delivered in margin adjusted of In half our achieved EBITDA would XXXX. clear. a expansion of to Notwithstanding the a

Olivier call details our to over turn second more the For I'll in Chief Thirot. the on this and Officer, quarter, our results Financial

Olivier Thirot

everybody. Thank and good you, Peter, morning,

the Recruitment Partners was January results that acquisition. since And XXXX As staffing Kelly's include including the the X, results of European of are now the sold Motion reminder, XXXX. date business we a on

our changes will basis. So into an reported provide just also organic operating I of the visibility for year-over-year To discuss on and in June XXXX greater the month this on quarter. also trends results,

new resulting acquisition quarter, the in business reflecting in the $X.XX revenue customer to in business, Reviewing several excludes Education from growth improved to second market demand to partially the a European information of X.X% XXXX. across Staffing for sequential the existing sale and fill of QX in stabilization the offset This staffing quarter grow year-over-year billion continued rate. strong of demand by by other of of uncertainty an of much Revenue XX% our businesses results segment, totaled year-over-year billion from XX.X%, in reflects References impact our growth primarily MRP. from XXXX, QX XXXX up sustained of by our double quarter. and basis, of and customers On an wins $X.XX MRP in down education, revenue organic specialties. improving European of compared organic digits, the strong the increased the XXXX to acquisition despite results net

down In segment, with and stable specialties in reported revenue outcome-based lower XX% by was reflects X% basis, and Permanent an our which the revenue revenue acquisition. sequentially. impact was staffing down Year-over-year includes also organic the the SET a in business. of placement on on basis trends revenue fees demand were down organic up Revenue staffing our X% X% MRP market organic declined growth XX%.

MSP were revenue with with in momentum positive products and slower improved revenues sectors, Year-over-year contingent was PPO both stable in MSP In and to has positioned and line driven our growth revenues The RPO where specialty, our certain increase labor in customers' in OCG benefit market But due are our by product going continued. RPO in sequentially demand. declines segment, hiring demand to from X%. forward. revenue MSP declined

staffing segment's declined also Revenue offsetting these declined staffing from in year-over-year sequentially, center sheet in this in X%. contact partially year-over-year segment, higher revenue stabilized revenue continued other outcome-based grow. our but our the quarter, Revenue The margin P&I X% outcome-based segment Industrial in declined also balance as did specialty to declines specialty Professional the product & specialty. including

was Overall as profit reported basis. an on X.X% organic gross XX.X% or

was the XX.X% the prior in to profit year. quarter gross rate Our XX.X% second compared of

well basis inclusion XX our of from sale of an restructuring organic additional our charges June as GP European growth On for Our $X.X expenses. European in with impact due basis also favorable basis, the The continued rate, points basis MRP. XXX costs. QX, declined the transformation lower our on fees reflects in staffing and including the quarter lower offset deeply a results [indiscernible]. efforts and second down primarily million million GP employee-related of including the business year-over-year of rate specialties were Expenses and burn XX% point sale XXX to XX operations, of to mix $X.X transition of to operations the an mix transaction a education XXXX expenses from to as related rate points of reported and expenses points reflects improvement basis. basis points XXX SG&A due include by of the XX unfavorable related points basis ongoing basis partially business staffing

SG&A include XXXX of expenses $X.X restructuring million charges. in

So expenses declined basis. by XX% organic on on adjusted basis or an an XX% adjusted

to compensation trends. were of XXXX due expenses, our positive top transformation performance reflecting in lower current well like-for-like of So QX structural line expenses as the efforts lower impact incentive as

beginning utilizing As are the we of a in revised our reportable XXXX, profit quarter the of measures. segments, unit first reminder, reporting business results operating

the to previously our a allocating also are reported share units. We of as business costs costs have corporate we greater

believe provides they contribute deposition and performance. and In We financial no amortization of Kelly's into the measure. each business visibility in to overall unit greater how longer are including performance addition, this our project business we unit

European $XX.X sale earnings were our from increase of in on million our of assets basis, second On related and from reported basis, million higher a to added million the to million, related in from compared of sale earnings of The $XX.X an QX charge doubled staffing operations XXXX. European related group. operations year acquisition operations, were the second the $X.X ago. transformation the On actions our includes million gain earnings in [ a operations, to and a adjusted the of $XX.X quarter an on XXXX sale $X.X reported charges staffing quarter ] The XXXX. earnings a the QX impairment of lease the property MRP loss formulations consolidated from excess nearly of

earnings, earnings EBITDA of efforts. of the adjusted The an in inclusion reflecting sale second points European transformation-related increase basis XX in of improvement staffing Adjusted June our operations from basis were from asset of operations of points improvement XXX including improved transformation an of the earnings of quarter the from of produced X.X%, European the charge. also basis XXXX. basis and basis million. month charges impairment quarter million the Adjusted $XX.X million our points from The MRP points of to second $X on ongoing staffing margin $X XXX reported XXXX result operations, XX and from

income expense $X.X $X.X In second compared million million in XXXX. was a of quarter to tax the the benefit for

include the gain restructuring per related sale $X.XX finally, of And [indiscernible] impairment share costs of charge. Earnings the was in in the quarter our per on acquisition in per loss effective Our to Group transaction MRP, sale share to to transaction a $X.XX as transformation was well European second XXXX. tax rate for related our related as a an charges XX.X% compared asset of staffing operations share income XXXX reported and XXXX. the earnings to and the QX

restructuring Earnings asset per included share impairment charge. XXXX and in an

basis, $X.XX year-over-year. doubling EPS compared $X.XX in per was QX adjusted to QX XXXX nearly So of on XXXX, an share

the reflecting on Now balance sheet.

at of had $XX of debt Following we cash the MRP $XXX million acquisition million, and end, totaled quarter outstanding.

is Our debt-to-capital XX.X%. ratio

the down of MRP. the uncertain organic year-end And second sheet as X as we to accounts environment. acquisition, down X $X.X end, and have financial including and we credit XX MRP. billion, XXXX. days of navigate additional end to amended As time and of was an investment we the ongoing to from disclosed facilities of quarter inorganic DSO days receivable maintain balance Global the for flexibility At from leverage the days, quarter our quarter at market XXXX acquire our totaled receivables

period. In to quarter, cash we $XX flow generated in free compared of year prior $XX the million the comparable million

the of by factors. results Looking ahead will be second for operating results the several our impacted year, to half

year with of second improvement First, OCG our half we the conditions and the consistent will sequential have first market in modest in that remain relatively P&I half of revenue what continue XXXX. will staffing set believe we in segments and experienced the

will segment by also both some to will revenue our will period of growth in continue but improvement revenue and MRP Education double-digit [indiscernible] in produce impacted further deliver metrics. holiday And be the Our value growth. acquisition finally, QX

be to of midpoint a no revenue revenue significant we of up the an FX basis, resulting $X X.X% XXXX, second half expect in about impact with For expectation X.X% to organic billion. on

revenue to expect of we MRP of add an half million to $XXX $XXX addition, additional million in the second In year. the

with expect organic in in change the to the our basis, MRP expected second XX% growth. rate our is deliver business GP second margin to this a additional points an our midpoint basis half Education because of XX.X% decline of add between point mix range, a Education revenue specialty XX XXX -- business the is profile, to like-for-like the half. reflecting continue higher-margin the at is expected our basis to our year. be in We to significant gross rate On to of primarily

the on year-over-year trends SG&A, expected between our in over GP moderate will gained of as past So of we second we we expect anniversary of improvements our the all-in XXXX the Reflecting execution year. the XX% efficiency actions. those to The transformation-related that rate be XX.X%. from sustain actions on is to most half to impact

million we adjusted and million in in, a add year on $XX of X.X% organic [ expect about deposition the SG&A, XXXX. X.X% approximately than ] be expenses that expect excluding will of basis, an in HX lower We half. $XX and D&A will amortization to second All of MRP ago

net organic expect XX XX third EBITDA we to the teens. X.X% basis adjusted point working increase. low MRP second in to school period add effective an finally, margin to be as to EBITDA X% back the to then regarding that basis seasonality, and believe days the X.X% the tax improve our or will organic Education in margin my QX an summer margin we expect of we that in rate holiday And will closer during up points in additional XX adjusted half Education's be of X.X% And as our of year-over-year. quarter expect XXXX. And points We earlier

to you, Peter. And now back

Peter W. Quigley

those results Olivier. of the Reflecting insights, second with this shared and those the on a track significant I'm Kelly confident in actions realize May, In achieved we're deliver new for progress our propel mark we journey. an inflection into Thanks era point will quarter, we you on that XXXX I that growth. year on would strategic to The ambitions.

businesses. OCG Our way revenue highly in attractive care. has technology, scale a transformational and EBITDA Recruitment The continued and of significant enhancing financial capabilities end Kelly contribute staffing, driving consulting Partners health and to and of team Motion potential growth margin MRP's Kelly nature complementary will of and recruiting attractive RPO industry leadership financial profile of and acquisition services the strengthened markets, customer solutions Kelly's MRP SET and in its veterans expansion. including

of Arris ago, while Telio initial Kelly's on and strategy. specialty demonstrating unlocking expectation Group and CG's capital we profitability to The global sale EBITDA incremental established improve Kelly's focus RPO efficiency significantly the And which our for sharpened growth long MSP year margin further expansion, initiatives our of X the achieved towards redeploy over to capacity we solutions term.

our difficult know second Notwithstanding together confident course, second we our and industry. embarked Kelly conditions. will about our on line to the year Of business of for half expect reflect it's our stabilization And of market specialty these time with achievements results the gives uncertain noted, growth our I'm dynamics, we the the as in quarter, sequential continue capitalize sequential since to to increase precise Olivier delivered optimistic in a across way the a recovery saw the journey, in sustained we I'm when position demand. stabilization we've progress that to

urgency, I'm MRP Team new driving us including unwavering has us Their moving us our forward I'm our colleagues of of this heights. noble point before in to clients that Kelly, by and limitless. to team to together newest the member that forces propel to the at are immensely that are opportunities our confident and talent continue the purpose, brought and united With every our of commitment each proud work our journey. agility

can open now to the you questions. call Greg,

Operator

[Operator Instructions] the Northcoast Mehta Research. from question Kartik from first comes of Your line

Kartik Mehta

Yes.

big of first you it's been to wish First pleasure shoes a all, all, Olivier, with some build. and best you, of I working [indiscernible] the

for you everything. thank So

Olivier Thirot

Thank you, Kartik.

Kartik Mehta

for if the wondering and look look ago, a half, or trend far quarter as the was to second been fundamentals on maybe so just and in that compare outlook that you second at second. we as the quarter ago And a year business, I could you the for MRP at focus your a the business? business it in you maybe what's for

Olivier Thirot

comment so I business few can on numbers on color add will on. and Yes. trends more a Peter and

so-called of pro have our we a [indiscernible] see might outlook forma. that have Kartik seen going of we you and information You XX-Q in to further issued call and today, course, are what the on

you about midrange the you're will HX the today, million. see of $XXX be $XXX of our you this use you If information going that to guidance XXXX, revenue at was if And take million.

X.X% bit change we a which versus MRP. expect, little of sequential organic, consistent similar are expect with at minus into about When versus we flat year a we second a million is the year, to on June minus basically ago. at a X%, is about to versus shared we X% the what specifically year. trends look HX of So when talking does to compare have have improvement said And slight the in $XXX you we minus half Kelly the ago, comparables prior based it turn basically for and in the in year improvement how

Peter W. Quigley

continue longer also both bullish on And our of on term, and MRP we the the we've staffing side. very models. solutions in as the date the pleased to the significant delivery MRP particular, Kartik, I of significant the with -- and that complementary complementary be to lack in, mean, side had businesses, We've they're with on been well overlap, as leadership nature but space customer very the partnership the RPO the on

in about longer making the the MRP. very investment of optimistic term, So still acquisition thesis we're

Kartik Mehta

have trends where are in segments. you overall of competition were then maybe in each increase the of quarter? as And of witnessing of the segments? what I'm kind pricing any terms wondering at or you're pricing, they business, Or just the look in last they

Peter W. Quigley

not conditions, Well, that across board. to I you're dynamic seeing. this an It's to to in of going that on it's -- find the are share. kind market going not industry outlier think environment, suppliers always buy try uncertain we're But

pleased pricing discipline to these been -- the fact, market relatively our we've ability conditions. with maintain In during

Olivier Thirot

Yes.

In Just to than it's slightly. pricing customer a the flat spread down, when but the little bit at it's meal In mix so-called stable. up you completely more P&I, SET in look Education, concession.

quarter, and isolated not it's of an this so So, year. QX far,

We have spreads. not seen on any pressure or change any

see of to keeping margin. continue overall our are our keeping spread we that We us capable --

Kartik Mehta

one just question. then last And

As you go MRP down will this information and early obviously, help.

point an As MRP, you is could acquisition, where a you opportunity you're you'd at look like for next thought the or wait up, your if that integrate you'd do so another acquisition. to turned

Peter W. Quigley

operating to its its We'll, working Well, integration. on going of as we've the it under MRP be is current and leadership its through where said, I with solutions deliver think MRP course, continue sense, companies our and services to brand. -- makes

now we're going terms we're acquisitions. a not know, focus that I the in think not The sidelines Kartik priority. But a future our time developing is stand right on quite is, long. you to -- as on as for of cycle pipeline

deploy preparing it for sense science telecom technology when for make would the and pursuit in us businesses, our practice. additional primarily to in high-growth time before, said we're education I've high-margin, engineering or of space as capital the in So

Operator

line from Barrington next comes question Steinke Kevin Your Research. the of from

Kevin Steinke

some are growth driven the progress those off would organic were with organic start being It asking to pleased part is second in by you growth you growth modest sounded want initiatives? of mean to organic like of the about organic transformation the the quarter. growth the return initiatives attribute that effort. I generating transformation-related by I really

Peter W. Quigley

pivoting good to the growth. attention portion were beginning relative precisely. we're what in our it's our efficiency. believe I spent And of hard our year, the and on from a share we turning XXXX taking we're Yes, of focused to I said, But so, think competitors, at across seeing we as Kevin, down it to we pin But businesses.

the strategy think made showing results, progress professional we've industrial traction. taking beginning our is enterprise large is customers in focus show our share to on also I and and omnichannel within

think pleased growth the with the combination and on the in little of areas We're high-margin organic I stable. bit And a the are that those plus two continued growth and Education obviously, focus in quarter. more

Kevin Steinke

X.X% I of your in to growth second revenue think organic Okay, good. question, about that when X.X% for of the half we XXXX. guess forecast And related to

you assuming kind just mentioned you rate the seeing some I'm half Sciences. Life demand. to unpack in talked second what of environment stabilization in organic in the driven a SET growth but about similar improvement of the trying You initiatives? stabilization been demand higher in to some growth sequential expect Or in continued mentioned improvement and to some you Technology in relative you've growth sounds It P&I, and also like that of get assuming the to recently, if demand environment by also it's or second just OCG. the overall half, get that sort you how to and improvements are organic you

Olivier Thirot

I about Yes. add confirm Education all, that then first And going see to double-digit on of on it, we today mean did at continuing Peter think some the I'm and start rate. will if side. so we grow to you color business

Of seen course, continuing. QX is see a long low have seasonality, but time we dynamic long, the we for

point. one that's So

the X.X%. from sequentially the Second point the business Education is, about excluding QX, Education, on when side QX rest you to by up went put of sequentially

to we similar expect second That QX sequentially from have the sequentially based modest over is on QX. half what basically We of improvement the seen year.

And like, business thinking this more X.X% legacy I'm start QX OCG it's P&I mentioning some science see was on up. was as Peter stabilization IT extent part sequential from really growth some saying, about staffing. instance, dynamics, and top and improvement sequential Peter that, of course, for And SET. Some areas We of Education. to was growth. of our to mentioning in is that positive the I that are when also are exclude of to you QX initiatives that Others, moving

that mean, the in there X.X And the this basically in base comparables lower year. than are is the right? basically HX reflecting is also to were our fact of the they I impact, first of XXXX also on half X.X

Peter W. Quigley

normalized when much will better Kevin, were remarks, it prepared return happens to than demand. we in advantage there And are we're of know And be of years prepared as a take But to when we positioned a ago. it mentioned don't couple a I take of we that. more my advantage to

of taken to But for we're and demand I Just structurally continue in we focused all conditions. I external on the steps earnest and a market growth that, the why the way. to because growth initiatives, that to we've mentioned. We turned when initiatives is the of into to waiting beginning base be in improve to those not returns which cost year, meaningful the at lean the able notwithstanding leverage will

Kevin Steinke

SG&A I the great. about expenses. trend in to Okay, adjusted ask also want

X.X% You mentioned be to to organically them down you year-over-year. expect X.X%

trying sequentially, organically. MRP the kind basis half sequential down second think about about we think or of the those a bit year, Just to more? of into excluding we trend should being will how on If a as flattish those come little move they if

Olivier Thirot

at would business I staffing really organic, to continue our meaning and Yes, MRP. look excluding European

around MRP think by D&A the way second the excluding half some specifics for of we year. today gave expectations for the I SG&A,

So minus we're if think QX, about we're XX% QX ago. go like-for-like year adjusted at QX minus XX%. you at organic, a you in versus about on a if really trend, In

quarter in in are mentioning a initiatives the we half, year. were portion are than to moved for our similar good When very already the course, the of second the second comparables visible Because the right? trend more our first challenging, quarter. half the that in efficiency of becoming you second So guidance of

QX. to Yes. So expectation. are we this more where is this look it it's trending now. adjusted QX half And will to flat from first sequentially if guidance. you that's sequentially you But we is QX why see at our second basically or that think if half you and about

Kevin Steinke

to I add pleasure your that and upcoming a you certainly And Olivier Thank my best also the Okay. and wishes years. congratulations over with was helpful. retirement working for very wanted you

Olivier Thirot

X the hear quarters for from around now, So a you're still for be going with next to going me to while I'm pleasure. right?

Kevin Steinke

look forward talking we to that. to Well, Okay.

Operator

line question next Gomes NOBLE comes of the from Markets. from Capital Joe Your

Joseph Gomes

for Joe. [indiscernible]

Peter W. Quigley

[indiscernible]

Joseph Gomes

of MRP. [indiscernible] guys the key any of how kind a from just the Has really picked far some you into So far? up And me business new for completion so into now wins couple the it. along? it so Can describe coming months of takeaways integration company of

Peter W. Quigley

Well, going the as continue mean been models not to as current we Partners Motion lot operate on time we're sense. ideas spending to with Josh, businesses explained, under they've plans and for foreseeable doesn't it team a operating future, and makes leadership we're That the their working of delivery brands. Recruitment for integration when

been We as the staffing the business on have Partners encouraged solutions by within collaboration teams the business. the and side as Motion of both between the Recruitment Sevenstep well

Kelly market And forward. think be we've and taken there model come or that combination going further ideal will advantage of advantage. on and operating the what that is And an MRP combined we of the encouraged refine It's we're proven to reaction more by the partnership. that and to to still the be customer optimized we what but have been has early, forces opportunities as

Joseph Gomes

roughly Okay. there Or in kind That's kind side quarter, now? true it there's you bit. little more that discussions you you're same? still talked about happening. yes, Is more a helpful. And Is market M&A how really still of on the the is properties the of previous seeing? But the in kind about guys that of touched

Peter W. Quigley

ago. I'd roughly still X Josh [indiscernible]. say or about It's it not same, it's was years the what X

a off cautious coming still little the are companies sidelines. about bit think I

you in not what to at our business, as But in everything the comes flow particular, know, its was height. market. it So not is

think we result continue MRP. And businesses at so acquisition high-margin to could explore point that we similar relationships how in high-growth, an we potentially to accomplished the and some future high-quality develop in

Joseph Gomes

been then what's guys the kind you you kind last that It's commented us probably Can been on update like And And for of Okay. an interest on in been one provide that? the Arc. program? couple guys of quarters Kelly a me. of with

Peter W. Quigley

demand terms is platform is of interest Well, as area in talent. The talent high. that that's fact and of both it's an AI customer and great side in the the solution a automation

automation But in side solution. any with adoption partaking and of As platform those both of takes customers also the customer solution the we talent dozen-plus AI one platform-driven on time. the hundreds side that are on have solutions. and it's And the professionals

platform platform. to has as it and a the it learn individuals hear other it about join and register, people solution and people customers network refer and begin a effect Again, as to about

still optimistic it we'll to invest the about it. time talent for and technology brings customers. both we're continue and solution value the our So and And into

Operator

Your question Sidoti. of Riddick next the from Marc comes line from

Marc Riddick

you're glad Olivier with us today.

wanted pipeline and maybe you little certainly that we sort piggybacking [indiscernible] shifting use how and of leverage talk of if was that. maybe that the with bit to of sort of sort a and acquisition thought plays opportunities towards there. the future into So do sort levels comfort process of acquisition pipeline? touch on little a bit see of on that appreciate I I wondering you

Olivier Thirot

the mean be debt level if $XXX to of at you million, very precise. the was remember, acquisition, MRP time I Yes. our

We already are now XXX. at

use our use months And If using what of I'm EBITDA. metrics, use EBITDA amongst I to multiple many covenants. we bank the that like is XX calculation you in other last the

to debt X.X about at EBITDA. now are We

So we are progress. making

over You free million. the flow our $XX was for on cash have quarter seen

year, comfortable continue -- feel more is I than I the So are but feel not track. much of quickly take, on I as that But to XX can time next right are as as going our think the that going and we months. course, to we we basically as to this possible, deleverage

basically business XX to in way DSO. say, we is progress is to which a versus where best is to confirm DSO at our would are the now capital capital, When manage I glad working we where you working see that big a are days, our manage our the before. And

for feel go we in to metrics, of we to terms are sheet acquisition and I see basically do deleverage comfortable we are ready comfortable attractive and we to comfortable So whenever that an that we can continue it whenever balance what leverage, have properties.

Marc Riddick

Are Okay, with maybe technology great. general any that but there great? this in enterprise-wide looking quick was at Is range whether it any just And investments love sort for year? of guess conjunction a then we're CapEx investments, there see follow-up. potential MRP, of you one ballpark be sort maybe coming I for would

Olivier Thirot

by can the I our time mean, cash you flow CapEx our case. the to statement. be of technology least will at and Most on has looking on course, CapEx over been assess it continue of at cash our flow

You basis. something $XX of region on think million million, the need $XX to recurring about a in

earnout Of course, integration as behind was we take happen is as That soon the to account technology into of that does have going mentioning, MRP. not as Peter us.

flow it are we possibly our and something capital generation $XX at expenses happen comfortable But after that's can million, through period. it So million million time, temporary QX to the now knowing of integration MRP. for of absorb for than million, a year, $XX period technology move next this which least $XX will of free the cash may that I planning [indiscernible] feel we limited for for $XX that higher a

Operator

[Operator And this are Instructions] at questions. no further there time,

Peter W. Quigley

I we you end can Greg, think Thank Okay, the call. very much.

Olivier Thirot

Greg. you, Thank

Operator

conclude AT&T for Thank for participation that you. Ladies teleconference. using you and Thank and your today. conference your for gentlemen, does

You may disconnect. now

Kelly Services (KELYA) 8 Aug 242024 Q2 Earnings call transcript