[3] Kelly was a former stock company manager who entered the film industry as a booking agent for the Paramount Publix theater chain.
In 1932, Kelly founded KBS Productions with Sam Bischoff and William Saal.
[4][3] The company thats name was derived from the initials of its three founders took over the former production facilities of Tiffany Pictures where they produced low budget Ken Maynard Westerns, and films such as The Death Kiss with Bela Lugosi, and Sherlock Holmes’ A Study in Scarlet.
KBS (also known as Admiral Productions) lasted until late 1933, after which he joined Republic Pictures as an associate producer.
In the early 1940s he joined Universal, producing his last movie Blondie's Secret in 1948.