Kelly® Responds to COVID-19 Crisis; Arranges Virtual 2020 Stockholder Meeting; Announces First Quarter Conference Call; With...
April 15 2020 - 10:12AM
Kelly Services, Inc. (Nasdaq: KELYA, KELYB), a global leader
in providing workforce solutions, today announced its first quarter
conference call and logistic changes to the company’s annual
meeting. The news is announced as the company takes multiple steps
to respond to the unprecedented COVID-19 pandemic including
compensation action, temporary furloughs and redeployment.
While the current crisis presents extraordinary conditions for
the company and the industry, Kelly remains confident in its
ability to adapt as we have over the past 74 years of operations.
The company’s seasoned leadership team has managed through labor
market disruptions and challenging global economic conditions over
the decades, and Kelly entered the COVID-19 crisis with a healthy
balance sheet and a clear business strategy.
The board of directors remains supportive of decisions necessary
to protect and guide the company’s commitment to long-term success.
Chief Executive Officer Peter Quigley recently announced a series
of decisions designed to reduce spending, minimize layoffs, and
bolster the strength and flexibility of Kelly’s finances. These
actions include a 10% pay cut for full-time salaried employees in
the U.S., Puerto Rico and Canada, in addition to certain actions in
EMEA and APAC; substantially reduced CEO compensation; reduced
compensation of 10% or more for senior leaders; temporary
furloughing and/or redeployment of some employees until business
conditions improve; suspension of the company match to certain
retirement accounts in the U.S. and Puerto Rico; reduction of
discretionary expenses and projects; and a hiring freeze with the
exception of critical revenue-generating positions. Kelly’s board
has indicated they will take formal action to reduce director
compensation at its next scheduled meeting in May. Given the level
of uncertainty surrounding the duration of the COVID-19 crisis,
Kelly’s board also supported Quigley’s decision to withdraw
full-year financial guidance and voted to suspend the quarterly
dividend until conditions improve. To ensure financial flexibility,
including the opportunity to capture emerging growth opportunities,
the board also supported a draw-down from Kelly’s credit
facility.
“The safety and well-being of Kelly’s employees during the
COVID-19 crisis is our top priority, followed immediately by the
health of the company,” said Quigley. “Over the last five years,
the leadership team has been diligent in enhancing Kelly’s
financial standing by growing higher-margin business, improving
efficiency, managing expenses and generating free cash flow. In
light of the current uncertain environment, we took additional
precautionary actions to further strengthen our balance sheet and
enhance our financial flexibility. While certainly painful, some
shared sacrifice now will provide us the opportunity to remain
strong and well-positioned coming out of this crisis.”Additional
information will be shared on Kelly’s first quarter conference
call. Conference Call
Kelly will release its first quarter earnings prior to the
market open on Monday, May 4, 2020. The company is hosting a
conference call at 9:00 a.m. EDT. The call may be accessed in one
of the following ways:
Join online: kellyservices.com
Join via phone: (877) 692-8955 (toll free) or (234) 720-6979
(caller paid) access code 5728672# A recording of the conference
call will be available after 2:30 p.m. EDT on May 4,
2020 at (866) 207-1041 (toll-free) and (402) 970-0847
(caller-paid). The access code is 5222215#. The recording will also
be available at kellyservices.com during this period.
Notice of Change to Virtual Meeting
Kelly has changed the format of its 2020 Annual Stockholders
Meeting, scheduled to be held on Wednesday, May 6 at 11 a.m. EDT,
from an in-person meeting at Kelly headquarters to a virtual
meeting. As a result of this change, stockholders will not be able
to attend the Annual Meeting in person. To access the Annual
Meeting:
Join online beginning at 10:45 a.m. EDT on Wednesday, May 6,
2020 at kellyservices.com or www.meetingcenter.io/243725561. If you
are a Class B Stockholder, you may join as a “Stockholder,” and
must have your control number available (found on your proxy
card*). All other attendees, including Class A Stockholders may
join as a “Guest.” The meeting password is KELY2020.
Class B Stockholders at the close of business on March 16, 2020
are allowed to vote in connection with the Annual Meeting. Class B
Stockholders may continue to submit proxies in advance of the
Annual Meeting via the internet, by phone or by mail, following the
instructions included on the previously distributed proxy card or
notice of internet availability.
If you wish to vote your shares at the Annual Meeting, please
follow the instructions available on the meeting website.
If your shares are held through an intermediary,
such as a bank or broker, you must register in advance to vote at
the Annual Meeting. Please submit proof of your proxy power (legal
proxy) reflecting your Kelly holdings along with your name and
email address to Computershare. Requests for registration must be
labeled as “Legal Proxy” and must be received no later than 5:00
p.m. EDT on Tuesday, May 5, 2020.
Requests for registration should be directed to Computershare at
the following address:
Computershare P.O. BOX
30170 College Station, TX 77842-3170 |
Overnight correspondence should be mailed to:Computershare211
Quality Circle, Suite 210College Station, TX 77845 |
By email: forward the email from your broker,
or attach an image of your legal proxy, to
legalproxy@computershare.com.
*Please note that the proxy card included with the proxy
materials previously distributed will not be updated to reflect the
change in location and may continue to be used to vote your shares
in connection with the Annual Meeting.
About Kelly
Kelly Services, 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. We’re always thinking about what’s 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 what’s next for you.
KLYA-FIN
Media Contact:
Jane Stehney
(248) 574-9800
stehney@kellyservices.com
@JaneStehney
Analyst Contact:
James Polehna(248) 244-4586polehjm@kellyservices.com
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