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Kelly Reports Fourth-Quarter and Full-Year 2024 Earnings
KELYAKelly Services(KELYA) Newsfilter·2025-02-13 12:30

Core Insights - Kelly Services reported fourth-quarter and full-year 2024 earnings, highlighting organic revenue growth that outpaced the market and a 34% increase in adjusted EBITDA [2][5] - The company achieved 100 basis points of net margin expansion and unlocked over 100millionincapitalthroughoperationalstreamlining,whichwasredeployedfortheacquisitionofMotionRecruitmentPartners[2][5]−ThecompanyanticipatescontinuedorganicrevenuegrowthandadjustedEBITDAmarginexpansioninfiscal2025[5][6]FinancialPerformance−Q4revenuewas100 million in capital through operational streamlining, which was redeployed for the acquisition of Motion Recruitment Partners [2][5] - The company anticipates continued organic revenue growth and adjusted EBITDA margin expansion in fiscal 2025 [5][6] Financial Performance - Q4 revenue was 1.2 billion, a decrease of 3.3% year-over-year, but an increase of 4.4% on an organic basis [5][6] - Full-year revenue totaled 4.3billion,down10.44.3 billion, down 10.4% as reported, but up 0.5% on an organic basis [5][6] - Q4 operating loss was 56.7 million, primarily due to 80.8millioninnon−cashimpairmentcharges,whileadjustedoperatingincomewas80.8 million in non-cash impairment charges, while adjusted operating income was 29.2 million, up 32% from the prior year [5][6] - Adjusted EBITDA for Q4 was 43.5million,reflectinga3443.5 million, reflecting a 34% increase year-over-year, with an adjusted EBITDA margin of 3.7%, up 110 basis points [5][6] - Full-year adjusted EBITDA was 143.5 million, a 31% increase from the previous year, with an adjusted EBITDA margin of 3.3%, an increase of 100 basis points [5][6] Strategic Developments - The company announced the planned retirement of CEO Peter Quigley by the end of 2025, initiating a search for his successor [9][10] - Quigley has been instrumental in the company's transformation into a leading global specialty talent solutions provider [10] Shareholder Returns - The board declared a quarterly cash dividend of 0.075pershare,payableonMarch12,2025[11]−Thecompanyexecutedsharerepurchasestotaling0.075 per share, payable on March 12, 2025 [11] - The company executed share repurchases totaling 10 million during Q4 2024 as part of its share repurchase program [11]