Kelly (NASDAQ: KELYA, KELYB) has recently announced a share repurchase program, authorizing the company to buy back up to $50 million of its Class A common stock. The authorization, which is valid until December 2, 2026, reflects the company's confidence in its strategy and the desire to return capital to shareholders.
Peter Quigley, the President and CEO of Kelly, emphasized that the share repurchase authorization is a mechanism to opportunistically return capital to shareholders. He highlighted the company's confidence in its strategy, which includes monetizing non-core assets, reallocating capital to higher-margin and higher-growth specialties, achieving substantial EBITDA margin expansion, and delivering above-market growth.
The shares may be repurchased through open market transactions, privately negotiated deals, or other means, including the use of trading plans that comply with Rule 10b5-1 under the Securities Exchange Act of 1934. The company will base its purchase decisions on factors such as market conditions, prevailing stock prices, legal requirements, and other business considerations. Additionally, the company is not obligated to acquire any specific amount of Class A common stock, and the authorization may be suspended or discontinued at any time.
The funding for share repurchases will come from available cash and equivalents, working capital, credit facility capacity, or cash flows from operations.
In 2023, Kelly's revenue amounted to $4.8 billion, reflecting its significant presence in the staffing industry since its inception in 1946.
The announcement of the share repurchase program demonstrates Kelly's commitment to creating value for shareholders while maintaining a strong balance sheet and investing in organic and inorganic growth initiatives. Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $14.9. If you want to know more, read the company's complete 8-K report here.
