Kelly Reports Fourth-Quarter and Full-Year 2024 Earnings
Kelly (KELYA) reported Q4 2024 results with revenue of $1.2 billion, down 3.3% year-over-year but up 4.4% on an organic basis. The company posted a Q4 operating loss of $56.7 million due to $80.8 million in non-cash impairment charges, while adjusted EBITDA increased 34% to $43.5 million with a margin of 3.7%.
Full-year 2024 revenue was $4.3 billion, down 10.4% as reported but up 0.5% organically. The company reported a full-year operating loss of $15.1 million due to impairment charges, while adjusted EBITDA grew 31% to $143.5 million with a 3.3% margin.
The company announced CEO Peter Quigley's planned retirement by the end of 2025. For first half 2025, Kelly expects approximately 10% revenue growth due to the Motion Recruitment Partners acquisition, with modest organic growth and adjusted EBITDA margin improvement of 10 basis points to 3.6%.
Kelly (KELYA) ha riportato i risultati del quarto trimestre 2024 con un fatturato di 1,2 miliardi di dollari, in calo del 3,3% rispetto all'anno precedente, ma in crescita del 4,4% su base organica. L'azienda ha registrato una perdita operativa nel quarto trimestre di 56,7 milioni di dollari a causa di oneri di svalutazione non monetari per 80,8 milioni di dollari, mentre l'EBITDA rettificato è aumentato del 34% raggiungendo i 43,5 milioni di dollari con un margine del 3,7%.
Il fatturato totale per l'intero anno 2024 è stato di 4,3 miliardi di dollari, in calo del 10,4% come riportato, ma in crescita dello 0,5% organicamente. L'azienda ha riportato una perdita operativa annuale di 15,1 milioni di dollari a causa degli oneri di svalutazione, mentre l'EBITDA rettificato è cresciuto del 31% arrivando a 143,5 milioni di dollari con un margine del 3,3%.
L'azienda ha annunciato il previsto ritiro del CEO Peter Quigley entro la fine del 2025. Per il primo semestre del 2025, Kelly prevede una crescita del fatturato di circa il 10% grazie all'acquisizione di Motion Recruitment Partners, con una modesta crescita organica e un miglioramento del margine EBITDA rettificato di 10 punti base, portandolo al 3,6%.
Kelly (KELYA) reportó resultados del cuarto trimestre de 2024 con ingresos de 1.2 mil millones de dólares, una disminución del 3.3% interanual, pero un aumento del 4.4% en términos orgánicos. La compañía reportó una pérdida operativa en el cuarto trimestre de 56.7 millones de dólares debido a cargos por deterioro no monetarios de 80.8 millones de dólares, mientras que el EBITDA ajustado aumentó un 34% a 43.5 millones de dólares con un margen del 3.7%.
Los ingresos del año completo 2024 fueron de 4.3 mil millones de dólares, una disminución del 10.4% según lo reportado, pero un aumento del 0.5% de manera orgánica. La empresa reportó una pérdida operativa anual de 15.1 millones de dólares debido a cargos por deterioro, mientras que el EBITDA ajustado creció un 31% a 143.5 millones de dólares con un margen del 3.3%.
La compañía anunció la jubilación planificada del CEO Peter Quigley para finales de 2025. Para el primer semestre de 2025, Kelly espera un crecimiento de ingresos de aproximadamente el 10% debido a la adquisición de Motion Recruitment Partners, con un crecimiento orgánico modesto y una mejora en el margen EBITDA ajustado de 10 puntos básicos al 3.6%.
켈리 (KELYA)는 2024년 4분기 실적을 보고하며 수익이 12억 달러로, 전년 대비 3.3% 감소했지만 유기적으로는 4.4% 증가했다고 발표했습니다. 이 회사는 비현금 손상 차감으로 8,080만 달러의 손실을 기록하며 4분기 운영 손실이 5,670만 달러에 달했습니다. 조정된 EBITDA는 34% 증가하여 4,350만 달러에 도달했으며, 마진은 3.7%입니다.
2024년 전체 연간 수익은 43억 달러로 보고된 바와 같이 10.4% 감소했지만 유기적으로는 0.5% 증가했습니다. 이 회사는 손상 차감으로 인해 연간 운영 손실이 1,510만 달러에 달했다고 보고했으며, 조정된 EBITDA는 31% 성장하여 1억 4,350만 달러에 도달했고 마진은 3.3%입니다.
회사는 CEO 피터 퀴글리의 2025년 말 은퇴 계획을 발표했습니다. 2025년 상반기 동안 켈리는 Motion Recruitment Partners 인수로 인해 약 10%의 수익 성장을 예상하며, 유기적 성장은 미미하고 조정된 EBITDA 마진은 10bp 개선되어 3.6%에 이를 것으로 보입니다.
Kelly (KELYA) a annoncé ses résultats du quatrième trimestre 2024 avec un chiffre d'affaires de 1,2 milliard de dollars, en baisse de 3,3% par rapport à l'année précédente, mais en hausse de 4,4% sur une base organique. L'entreprise a enregistré une perte opérationnelle au quatrième trimestre de 56,7 millions de dollars en raison de charges de dépréciation non monétaires de 80,8 millions de dollars, tandis que l'EBITDA ajusté a augmenté de 34% pour atteindre 43,5 millions de dollars avec une marge de 3,7%.
Le chiffre d'affaires total pour l'année 2024 s'élevait à 4,3 milliards de dollars, en baisse de 10,4% comme rapporté, mais en hausse de 0,5% de manière organique. L'entreprise a signalé une perte opérationnelle annuelle de 15,1 millions de dollars en raison de charges de dépréciation, tandis que l'EBITDA ajusté a augmenté de 31% pour atteindre 143,5 millions de dollars avec une marge de 3,3%.
L'entreprise a annoncé la retraite prévue du PDG Peter Quigley d'ici la fin de 2025. Pour le premier semestre 2025, Kelly prévoit une croissance du chiffre d'affaires d'environ 10% grâce à l'acquisition de Motion Recruitment Partners, avec une croissance organique modeste et une amélioration de la marge EBITDA ajustée de 10 points de base à 3,6%.
Kelly (KELYA) berichtete über die Ergebnisse des vierten Quartals 2024 mit einem Umsatz von 1,2 Milliarden Dollar, was einem Rückgang von 3,3% im Jahresvergleich entspricht, aber einem Anstieg von 4,4% auf organischer Basis. Das Unternehmen verzeichnete im vierten Quartal einen operativen Verlust von 56,7 Millionen Dollar aufgrund von nicht zahlungswirksamen Wertminderungen in Höhe von 80,8 Millionen Dollar, während das bereinigte EBITDA um 34% auf 43,5 Millionen Dollar anstieg, mit einer Marge von 3,7%.
Der Gesamtumsatz für das Jahr 2024 betrug 4,3 Milliarden Dollar, was einem Rückgang von 10,4% entspricht, aber organisch um 0,5% gestiegen ist. Das Unternehmen berichtete für das gesamte Jahr einen operativen Verlust von 15,1 Millionen Dollar aufgrund von Wertminderungen, während das bereinigte EBITDA um 31% auf 143,5 Millionen Dollar wuchs, mit einer Marge von 3,3%.
Das Unternehmen gab die geplante Pensionierung von CEO Peter Quigley bis Ende 2025 bekannt. Für das erste Halbjahr 2025 erwartet Kelly ein Umsatzwachstum von etwa 10% aufgrund der Übernahme von Motion Recruitment Partners, mit bescheidenem organischem Wachstum und einer Verbesserung der bereinigten EBITDA-Marge um 10 Basispunkte auf 3,6%.
- Q4 organic revenue growth of 4.4% outpaced market
- Q4 adjusted EBITDA increased 34% to $43.5 million
- Full-year adjusted EBITDA grew 31% to $143.5 million
- Adjusted EBITDA margin improved 100 basis points to 3.3%
- Unlocked over $100 million in capital through streamlined operations
- Executed $10 million in share repurchases during Q4
- Q4 operating loss of $56.7 million due to impairment charges
- Full-year operating loss of $15.1 million
- Q4 revenue declined 3.3% year-over-year to $1.2 billion
- Full-year revenue decreased 10.4% to $4.3 billion
- Q4 loss per share of $0.90 compared to earnings of $0.31 in Q4 2023
Insights
Kelly's Q4 2024 results reveal a strategic transformation in progress, with the company successfully executing its specialty growth journey despite challenging market conditions. The 4.4% organic revenue growth significantly outperformed broader industry declines, demonstrating effective market share capture and validation of the company's strategic pivot toward higher-margin specialty solutions.
The financial metrics tell a compelling story of operational improvement. The 110 basis point expansion in adjusted EBITDA margin to 3.7% breaks down into two components: 50 basis points from organic improvement and 60 basis points from portfolio optimization through the European staffing operations sale. This margin expansion, coupled with the 34% increase in adjusted EBITDA to $43.5M, indicates successful execution of the company's value-creation strategy.
The
The announced retirement of CEO Peter Quigley by end-2025 provides a well-structured transition period for maintaining strategic continuity. The timing aligns with the completion of major portfolio restructuring initiatives, allowing the incoming leadership to focus on scaling the enhanced business model.
Looking ahead, Kelly's guidance for H1 2025 suggests continued momentum, with projected 10% revenue growth and an additional 80 basis points of gross profit rate expansion. The company's evolution from a traditional staffing provider to a specialty talent solutions leader positions it favorably for sustainable growth as labor market dynamics evolve.
TROY, Mich., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced fourth-quarter and full-year 2024 earnings.
- Q4 revenue of
$1.2 billion , down3.3% year-over-year reflecting the previously disclosed dispositions and acquisitions, and up4.4% on an organic basis. Full-year revenue of$4.3 billion , down10.4% as reported and up0.5% on an organic basis. - Q4 operating loss of
$56.7 million on$80.8 million non-cash impairment charges;$29.2 million of operating income on an adjusted basis, up32% versus the prior year period - Q4 adjusted EBITDA of
$43.5 million , up34% versus the prior year; adjusted EBITDA margin increased 110 basis points versus the prior year period to3.7% - Full-year operating loss of
$15.1 million resulting from non-cash impairment charges; adjusted operating income of$92.1 million ; adjusted EBITDA of$143.5 million , up31% versus the prior year, and adjusted EBITDA margin of3.3% , an increase of 100 basis points versus the prior year - Company expects to deliver incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025
- Announces planned retirement of president and chief executive officer Peter Quigley by the end of 2025
“We are pleased with our results in the fourth quarter, during which we drove organic revenue growth that outpaced the market and increased adjusted EBITDA by 34 percent. Our positive performance bookended a year of significant strategic progress on our specialty growth journey as we continued to shift toward higher margin, higher growth markets and solutions,” said Peter Quigley, president and chief executive officer. “In 2024, we delivered 100 basis points of net margin expansion, unlocked more than
Financial Results for the thirteen-week period ended December 29, 2024:
- Revenue of
$1.2 billion , a3.3% decrease compared to the corresponding quarter of 2023 resulting primarily from the sale of the Company’s European staffing operations on January 2, 2024, partially offset by the May 2024 acquisition of Motions Recruitment Partners (“MRP”). Excluding the European staffing operations and MRP, revenue was up4.4% on an organic basis as organic growth initiatives drove market share gains despite broader industry declines. MRP revenue added9.8% to reported fourth-quarter year-over-year revenue growth. - Operating loss of
$56.7 million , reflecting$80.8 million in non-cash impairment charges compared to earnings of$7.3 million reported in the fourth quarter of 2023. Adjusted earnings1 were$29.2 million in the fourth quarter of 2024 and$22.1 million in the fourth quarter of 2023. Adjusted EBITDA1 of$43.5 million , an increase of34% versus the prior year period. Adjusted EBITDA margin of3.7% , an increase of 110 basis points. Reflects organic improvement of 50 basis points and a 60 basis point impact from the European staffing operations sale. - Loss per share was
$0.90 compared to earnings per share of$0.31 in the fourth quarter of 2023. On an adjusted basis1, earnings per share were$0.82 in the fourth quarter of 2024 compared to$0.93 per share in the corresponding quarter of 2023.
Financial results for the 52-week period ended December 29, 2024:
- Revenue of
$4.3 billion , a decrease of10.4% compared to the prior year resulting primarily from the sale of the European staffing operations partially offset by the acquisition of MRP. Excluding the impact of the European staffing operations sale and MRP, revenue was up0.5% on an organic basis. MRP added5.9% to reported year-over-year revenue growth. - Operating loss of
$15.1 million , reflecting$86.3 million of non-cash impairment charges compared to earnings of$24.3 million reported in 2023. Adjusted earnings1 were$92.1 million in 2024 and$69.1 million in 2023. Adjusted EBITDA of$143.5 million , an increase of31% versus the prior year. Adjusted EBITDA1 margin of3.3% , an increase of 100 basis points. Reflects organic improvement of 50 basis points, a 40 basis point impact from the European staffing sale and 10 basis point improvement from the acquisition of MRP. - Loss per share was
$0.02 compared to earnings per share of$0.98 in 2023. On an adjusted basis1, earnings per share were$2.34 in 2024 compared to$2.20 per share in 2023.
1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document.
Financial Outlook*:
First Half 2025:
- Revenue – total Company first half revenue up approximately
10% due to the benefit of the MRP acquisition, up modestly on an organic basis- Total Company revenue growth will be slightly higher in Q1 than in Q2 given the May 31, 2024 MRP transaction closing date
- GP rate – total Company rate up approximately 80 basis points reflecting the benefit of the MRP acquisition; organic GP rate roughly flat
- Adjusted SG&A – increase modestly on a quarterly run rate basis relative to Q4 2024, includes impact of payroll tax and performance-based incentive resets
- Total D&A of approximately
$13.5 million per quarter expected
- Total D&A of approximately
- Adjusted EBITDA margin – up 10 basis points to approximately
3.6% - Tax rate – effective rate in the high teens
*Assumes relatively consistent staffing market conditions in the first half of the year
Planned Retirement of President and Chief Executive Officer Peter Quigley:
Kelly also announced that Peter Quigley has informed Kelly’s board of directors of his intention to retire from his role as president and chief executive officer by the end of 2025. Quigley intends to serve in his current role until his successor is appointed and an orderly transition is completed. The compensation and talent management committee of the board, which is responsible for executive development and succession, has initiated a process to identify Quigley’s successor and engaged a nationally recognized search firm. The board will consider internal and external candidates with the skills and experience to continue accelerating the Company’s progress on its specialty growth journey.
The anticipated retirement of Quigley, who will turn 64 in April, follows a successful career that includes 22 years with Kelly. Prior to being named president and chief executive officer in 2019, he served as an officer in key roles including general counsel and chief administrative officer, and president of global staffing. Quigley’s leadership and passion for serving customers and talent have been instrumental to Kelly’s transformation into a leading global specialty talent solutions provider.
Quarterly Cash Dividend and Share Repurchase:
Kelly also reported that on February 11, its board of directors declared a dividend of
In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call with financial analysts at 9 a.m. ET on February 13 to review the results from the quarter and answer questions. The presentation and a link to the live webcast will be accessible through the Company’s public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast.
Forward-Looking Statements
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was
KLYA-FIN
| ANALYST & MEDIA CONTACT: | |||
| Scott Thomas | |||
| (248) 251-7264 | |||
| scott.thomas@kellyservices.com |
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| FOR THE 13 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| % | CC % | |||||||||||||||
| 2024 | 2023 | Change | Change | Change | ||||||||||||
| Revenue from services | $ | 1,191.1 | $ | 1,232.2 | $ | (41.1 | ) | (3.3 | ) | % | (3.1 | ) | % | |||
| Cost of services | 949.6 | 994.0 | (44.4 | ) | (4.5 | ) | ||||||||||
| Gross profit | 241.5 | 238.2 | 3.3 | 1.4 | 1.6 | |||||||||||
| Selling, general and administrative expenses | 217.4 | 230.9 | (13.5 | ) | (5.9 | ) | (5.7 | ) | ||||||||
| Asset impairment charge | 8.0 | — | 8.0 | NM | ||||||||||||
| Goodwill impairment charge | 72.8 | — | 72.8 | NM | ||||||||||||
| Earnings (loss) from operations | (56.7 | ) | 7.3 | (64.0 | ) | NM | ||||||||||
| Other income (expense), net | 1.1 | (2.4 | ) | 3.5 | NM | |||||||||||
| Earnings (loss) before taxes | (55.6 | ) | 4.9 | (60.5 | ) | NM | ||||||||||
| Income tax benefit | (23.8 | ) | (6.5 | ) | (17.3 | ) | (263.4 | ) | ||||||||
| Net earnings (loss) | $ | (31.8 | ) | $ | 11.4 | $ | (43.2 | ) | NM | % | ||||||
| Basic earnings (loss) per share | $ | (0.90 | ) | $ | 0.32 | $ | (1.22 | ) | NM | % | ||||||
| Diluted earnings (loss) per share | $ | (0.90 | ) | $ | 0.31 | $ | (1.21 | ) | NM | % | ||||||
| STATISTICS: | ||||||||||||||||
| Permanent placement income (included in revenue from services) | $ | 13.3 | $ | 11.7 | $ | 1.6 | 13.3 | % | 13.6 | % | ||||||
| Gross profit rate | 20.3 | % | 19.3 | % | 1.0 | pts. | ||||||||||
| Adjusted EBITDA | $ | 43.5 | $ | 32.5 | $ | 11.0 | ||||||||||
| Adjusted EBITDA margin | 3.7 | % | 2.6 | % | 1.1 | pts. | ||||||||||
| Effective income tax rate | 42.7 | % | (134.3 | ) | % | 177.0 | pts. | |||||||||
| Average number of shares outstanding (millions): | ||||||||||||||||
| Basic | 35.5 | 35.3 | ||||||||||||||
| Diluted | 35.5 | 35.7 | ||||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| FOR THE 52 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| % | CC % | |||||||||||||||
| 2024 | 2023 | Change | Change | Change | ||||||||||||
| Revenue from services | $ | 4,331.8 | $ | 4,835.7 | $ | (503.9 | ) | (10.4 | ) | % | (10.3 | ) | % | |||
| Cost of services | 3,449.2 | 3,874.3 | (425.1 | ) | (11.0 | ) | ||||||||||
| Gross profit | 882.6 | 961.4 | (78.8 | ) | (8.2 | ) | (8.1 | ) | ||||||||
| Selling, general and administrative expenses | 818.4 | 934.7 | (116.3 | ) | (12.4 | ) | (12.4 | ) | ||||||||
| Asset impairment charge | 13.5 | 2.4 | 11.1 | 451.8 | ||||||||||||
| Goodwill impairment charge | 72.8 | — | 72.8 | NM | ||||||||||||
| Gain on sale of EMEA staffing operations | (1.6 | ) | — | (1.6 | ) | NM | ||||||||||
| Gain on sale of assets | (5.4 | ) | — | (5.4 | ) | NM | ||||||||||
| Earnings (loss) from operations | (15.1 | ) | 24.3 | (39.4 | ) | NM | ||||||||||
| Other income (expense), net | (6.8 | ) | 0.6 | (7.4 | ) | NM | ||||||||||
| Earnings (loss) before taxes | (21.9 | ) | 24.9 | (46.8 | ) | NM | ||||||||||
| Income tax benefit | (21.3 | ) | (11.5 | ) | (9.8 | ) | (84.1 | ) | ||||||||
| Net earnings (loss) | $ | (0.6 | ) | $ | 36.4 | $ | (37.0 | ) | NM | % | ||||||
| Basic earnings (loss) per share | $ | (0.02 | ) | $ | 0.99 | $ | (1.01 | ) | NM | % | ||||||
| Diluted earnings (loss) per share | $ | (0.02 | ) | $ | 0.98 | $ | (1.00 | ) | NM | % | ||||||
| STATISTICS: | ||||||||||||||||
| Permanent placement income (included in revenue from services) | $ | 45.5 | $ | 59.5 | $ | (14.0 | ) | (23.6 | ) | % | (23.5 | ) | % | |||
| Gross profit rate | 20.4 | % | 19.9 | % | 0.5 | pts. | ||||||||||
| Adjusted EBITDA | $ | 143.5 | $ | 109.4 | $ | 34.1 | ||||||||||
| Adjusted EBITDA margin | 3.3 | % | 2.3 | % | 1.0 | pts. | ||||||||||
| Effective income tax rate | 97.1 | % | (46.5 | ) | % | 143.6 | pts. | |||||||||
| Average number of shares outstanding (millions): | ||||||||||||||||
| Basic | 35.5 | 35.9 | ||||||||||||||
| Diluted | 35.5 | 36.3 | ||||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
| RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (In millions of dollars) | ||||||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | ||||||||||||||
| Fourth Quarter | ||||||||||||||
| 2024 | 2023 | % Change | CC % Change | |||||||||||
| Professional & Industrial | ||||||||||||||
| Revenue from services | $ | 384.2 | $ | 368.1 | 4.4 | % | 5.2 | % | ||||||
| Gross profit | 68.6 | 67.3 | 1.9 | 3.0 | ||||||||||
| SG&A expenses excluding restructuring charges | 57.0 | 59.6 | (4.4 | ) | (3.7 | ) | ||||||||
| Restructuring charges | (0.1 | ) | (0.6 | ) | (89.3 | ) | (89.3 | ) | ||||||
| Total SG&A expenses | 56.9 | 59.0 | (3.5 | ) | (2.9 | ) | ||||||||
| Business unit profit (loss) | 11.7 | 8.3 | 40.3 | |||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 11.6 | 7.7 | 49.9 | |||||||||||
| Gross profit rate | 17.9 | % | 18.3 | % | (0.4 | ) | pts. | |||||||
| Science, Engineering & Technology | ||||||||||||||
| Revenue from services | $ | 396.1 | $ | 287.3 | 37.9 | % | 37.9 | % | ||||||
| Gross profit | 94.8 | 64.6 | 47.0 | 46.9 | ||||||||||
| SG&A expenses excluding restructuring charges | 72.7 | 46.3 | 57.0 | 57.2 | ||||||||||
| Restructuring charges | — | 0.4 | (99.7 | ) | (99.7 | ) | ||||||||
| Total SG&A expenses | 72.7 | 46.7 | 55.8 | 56.0 | ||||||||||
| Goodwill impairment charge | 72.8 | — | NM | |||||||||||
| Business unit profit (loss) | (50.7 | ) | 17.9 | NM | ||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 22.1 | 18.3 | 21.4 | |||||||||||
| Gross profit rate | 23.9 | % | 22.5 | % | 1.4 | pts. | ||||||||
| Education | ||||||||||||||
| Revenue from services | $ | 289.2 | $ | 258.0 | 12.1 | % | 12.1 | % | ||||||
| Gross profit | 41.1 | 37.1 | 10.7 | 10.7 | ||||||||||
| Total SG&A expenses | 24.7 | 23.0 | 6.9 | 6.9 | ||||||||||
| Business unit profit (loss) | 16.4 | 14.1 | 17.0 | |||||||||||
| Gross profit rate | 14.2 | % | 14.4 | % | (0.2 | ) | pts. | |||||||
| Outsourcing & Consulting | ||||||||||||||
| Revenue from services | $ | 122.3 | $ | 112.3 | 8.8 | % | 8.6 | % | ||||||
| Gross profit | 37.0 | 39.1 | (5.4 | ) | (5.6 | ) | ||||||||
| SG&A expenses excluding restructuring charges | 34.9 | 37.8 | (7.8 | ) | (7.9 | ) | ||||||||
| Restructuring charges | (0.1 | ) | 0.7 | (109.0 | ) | (1.9 | ) | |||||||
| Total SG&A expenses | 34.8 | 38.5 | (9.4 | ) | (9.6 | ) | ||||||||
| Business unit profit (loss) | 2.2 | 0.6 | 265.2 | |||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 2.1 | 1.3 | 68.6 | |||||||||||
| Gross profit rate | 30.3 | % | 34.8 | % | (4.5 | ) | pts. | |||||||
| International | ||||||||||||||
| Revenue from services | $ | — | $ | 207.4 | (100.0 | ) | % | (100.0 | ) | % | ||||
| Gross profit | — | 30.1 | (100.0 | ) | (100.0 | ) | ||||||||
| SG&A expenses excluding restructuring charges | — | 30.0 | (100.0 | ) | (100.0 | ) | ||||||||
| Restructuring charges | — | 2.7 | (100.0 | ) | (100.0 | ) | ||||||||
| Total SG&A expenses | — | 32.7 | (100.0 | ) | (100.0 | ) | ||||||||
| Business unit profit (loss) | — | (2.6 | ) | (100.0 | ) | |||||||||
| Business unit profit (loss) excluding restructuring and impairment | — | 0.1 | (100.0 | ) | ||||||||||
| Gross profit rate | — | % | 14.5 | % | (14.5 | ) | pts. | |||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| RESULTS OF OPERATIONS BY SEGMENT | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (In millions of dollars) | |||||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | |||||||||||||
| December Year to Date | |||||||||||||
| 2024 | 2023 | % Change | CC % Change | ||||||||||
| Professional & Industrial | |||||||||||||
| Revenue from services | $ | 1,470.7 | $ | 1,539.5 | (4.5 | ) | % | (4.2 | ) | % | |||
| Gross profit | 261.3 | 277.1 | (5.7 | ) | (5.4 | ) | |||||||
| SG&A expenses excluding restructuring charges | 226.3 | 254.1 | (10.9 | ) | (10.7 | ) | |||||||
| Restructuring charges | 0.3 | 6.7 | (95.7 | ) | (95.7 | ) | |||||||
| Total SG&A expenses | 226.6 | 260.8 | (13.1 | ) | (12.9 | ) | |||||||
| Asset impairment charge | — | 0.3 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 34.7 | 16.0 | 116.1 | ||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 35.0 | 23.0 | 50.9 | ||||||||||
| Gross profit rate | 17.8 | % | 18.0 | % | (0.2 | ) | pts. | ||||||
| Science, Engineering & Technology | |||||||||||||
| Revenue from services | $ | 1,422.8 | $ | 1,190.8 | 19.5 | % | 19.5 | % | |||||
| Gross profit | 335.6 | 272.0 | 23.4 | 23.3 | |||||||||
| SG&A expenses excluding restructuring charges | 245.5 | 195.3 | 25.7 | 25.8 | |||||||||
| Restructuring charges | 0.3 | 1.6 | (78.0 | ) | (78.0 | ) | |||||||
| Total SG&A expenses | 245.8 | 196.9 | 24.9 | 24.9 | |||||||||
| Goodwill impairment charge | 72.8 | — | NM | ||||||||||
| Asset impairment charge | — | 0.1 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 17.0 | 75.0 | (77.4 | ) | |||||||||
| Business unit profit (loss) excluding restructuring and impairment | 90.1 | 76.7 | 17.5 | ||||||||||
| Gross profit rate | 23.6 | % | 22.8 | % | 0.8 | pts. | |||||||
| Education | |||||||||||||
| Revenue from services | $ | 972.3 | $ | 841.9 | 15.5 | % | 15.5 | % | |||||
| Gross profit | 139.8 | 128.7 | 8.6 | 8.6 | |||||||||
| SG&A expenses excluding restructuring charges | 95.9 | 91.4 | 4.8 | 4.8 | |||||||||
| Restructuring charges | — | 1.0 | (100.0 | ) | (100.0 | ) | |||||||
| Total SG&A expenses | 95.9 | 92.4 | 3.7 | 3.7 | |||||||||
| Business unit profit (loss) | 43.9 | 36.3 | 21.3 | ||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 43.9 | 37.3 | 18.1 | ||||||||||
| Gross profit rate | 14.4 | % | 15.3 | % | (0.9 | ) | pts. | ||||||
| Outsourcing & Consulting | |||||||||||||
| Revenue from services | $ | 468.3 | $ | 454.7 | 3.0 | % | 3.0 | % | |||||
| Gross profit | 145.9 | 163.5 | (10.8 | ) | (10.8 | ) | |||||||
| SG&A expenses excluding restructuring charges | 139.8 | 156.3 | (10.5 | ) | (10.7 | ) | |||||||
| Restructuring charges | 0.4 | 3.0 | (85.5 | ) | (85.5 | ) | |||||||
| Total SG&A expenses | 140.2 | 159.3 | (11.9 | ) | (12.1 | ) | |||||||
| Asset impairment charge | — | 2.0 | (100.0 | ) | |||||||||
| Business unit profit (loss) | 5.7 | 2.2 | 152.4 | ||||||||||
| Business unit profit (loss) excluding restructuring and impairment | 6.1 | 7.2 | (16.0 | ) | |||||||||
| Gross profit rate | 31.2 | % | 36.0 | % | (4.8 | ) | pts. | ||||||
| International | |||||||||||||
| Revenue from services | $ | — | $ | 812.1 | (100.0 | ) | % | (100.0 | ) | % | |||
| Gross profit | — | 120.1 | (100.0 | ) | (100.0 | ) | |||||||
| SG&A expenses excluding restructuring charges | — | 118.7 | (100.0 | ) | (100.0 | ) | |||||||
| Restructuring charges | — | 3.3 | (100.0 | ) | (100.0 | ) | |||||||
| Total SG&A expenses | — | 122.0 | (100.0 | ) | (100.0 | ) | |||||||
| Business unit profit (loss) | — | (1.9 | ) | (100.0 | ) | ||||||||
| Business unit profit (loss) excluding restructuring and impairment | — | 1.4 | (100.0 | ) | |||||||||
| Gross profit rate | — | % | 14.8 | % | (14.8 | ) | pts. | ||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (UNAUDITED) | |||||||
| (In millions of dollars) | |||||||
| Dec. 29, 2024 | Dec. 31, 2023 | ||||||
| Current Assets | |||||||
| Cash and equivalents | $ | 39.0 | $ | 125.8 | |||
| Trade accounts receivable, less allowances of | 1,255.5 | 1,160.6 | |||||
| Prepaid expenses and other current assets | 71.0 | 48.9 | |||||
| Assets held for sale | — | 291.3 | |||||
| Total current assets | 1,365.5 | 1,626.6 | |||||
| Noncurrent Assets | |||||||
| Property and equipment, net | 25.8 | 24.6 | |||||
| Operating lease right-of-use assets | 47.0 | 47.1 | |||||
| Deferred taxes | 330.1 | 321.1 | |||||
| Goodwill, net | 304.2 | 151.1 | |||||
| Intangibles, net | 256.3 | 137.7 | |||||
| Retirement plan assets | 258.1 | 230.3 | |||||
| Other assets | 45.3 | 43.1 | |||||
| Total noncurrent assets | 1,266.8 | 955.0 | |||||
| Total Assets | $ | 2,632.3 | $ | 2,581.6 | |||
| Current Liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 613.8 | $ | 646.1 | |||
| Operating lease liabilities | 12.3 | 8.4 | |||||
| Accrued payroll and related taxes | 163.9 | 156.2 | |||||
| Accrued workers' compensation and other claims | 19.0 | 22.1 | |||||
| Income and other taxes | 17.5 | 17.2 | |||||
| Liabilities held for sale | — | 169.9 | |||||
| Total current liabilities | 826.5 | 1,019.9 | |||||
| Noncurrent Liabilities | |||||||
| Long-term debt | 239.4 | — | |||||
| Operating lease liabilities | 50.9 | 42.9 | |||||
| Accrued workers' compensation and other claims | 33.8 | 40.9 | |||||
| Accrued retirement benefits | 239.9 | 217.4 | |||||
| Other long-term liabilities | 7.2 | 6.8 | |||||
| Total noncurrent liabilities | 571.2 | 308.0 | |||||
| Stockholders' Equity | |||||||
| Common stock | 38.5 | 38.5 | |||||
| Treasury stock | (61.4 | ) | (57.3 | ) | |||
| Paid-in capital | 34.2 | 30.6 | |||||
| Earnings invested in the business | 1,230.2 | 1,241.7 | |||||
| Accumulated other comprehensive income (loss) | (6.9 | ) | 0.2 | ||||
| Total stockholders' equity | 1,234.6 | 1,253.7 | |||||
| Total Liabilities and Stockholders' Equity | $ | 2,632.3 | $ | 2,581.6 | |||
| Statistics: | |||||||
| Working Capital | $ | 539.0 | $ | 606.7 | |||
| Current Ratio | 1.7 | 1.6 | |||||
| Debt-to-capital % | 16.2 | % | 0.0 | % | |||
| Global Days Sales Outstanding | 59 | 59 | |||||
| Year-to-Date Free Cash Flow | $ | 15.8 | $ | 61.4 | |||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| FOR THE 52 WEEKS ENDED DECEMBER 29, 2024 AND DECEMBER 31, 2023 | ||||||
| (UNAUDITED) | ||||||
| (In millions of dollars) | ||||||
| 2024 | 2023 | |||||
| Cash flows from operating activities: | ||||||
| Net earnings (loss) | $ | (0.6 | ) | $ | 36.4 | |
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||||
| Asset impairment charge | 13.5 | 2.4 | ||||
| Goodwill impairment charge | 72.8 | — | ||||
| Deferred income taxes | (27.8 | ) | (24.9 | ) | ||
| Depreciation and amortization | 40.2 | 33.9 | ||||
| Operating lease asset amortization | 10.7 | 16.2 | ||||
| Provision for credit losses and sales allowances | (0.1 | ) | 1.6 | |||
| Stock-based compensation | 11.8 | 9.7 | ||||
| Gain on sale of equity securities | (0.6 | ) | (2.0 | ) | ||
| (Gain) loss on forward contract | (1.2 | ) | 3.6 | |||
| Gain on sale of EMEA staffing operations | (1.6 | ) | — | |||
| Gain on sale of assets | (5.4 | ) | — | |||
| Other, net | (7.6 | ) | 1.8 | |||
| Changes in operating assets and liabilities, net of acquisitions | (77.2 | ) | (2.0 | ) | ||
| Net cash from operating activities | 26.9 | 76.7 | ||||
| Cash flows from investing activities: | ||||||
| Capital expenditures | (11.1 | ) | (15.3 | ) | ||
| Proceeds from sale of EMEA staffing operations, net of cash disposed | 77.1 | — | ||||
| Proceeds from sale of assets | 4.3 | — | ||||
| Acquisition of companies, net of cash received | (431.9 | ) | — | |||
| Other investing activities | — | 1.2 | ||||
| Net cash used in investing activities | (361.6 | ) | (14.1 | ) | ||
| Cash flows from financing activities: | ||||||
| Net change in short-term borrowings | — | (0.7 | ) | |||
| Proceeds from long-term debt | 1,340.2 | — | ||||
| Payments on long-term debt | (1,100.8 | ) | — | |||
| Financing lease payments | — | (1.2 | ) | |||
| Dividend payments | (10.9 | ) | (11.0 | ) | ||
| Payments of tax withholding for stock awards | (2.5 | ) | (1.8 | ) | ||
| Buyback of common shares | — | — | ||||
| Purchase of treasury stock | (10.0 | ) | (42.2 | ) | ||
| Contingent consideration payments | — | (2.5 | ) | |||
| Other financing activities | (1.2 | ) | (0.2 | ) | ||
| Net cash from (used in) financing activities | 214.8 | (59.6 | ) | |||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (2.1 | ) | 2.2 | |||
| Net change in cash, cash equivalents and restricted cash | (122.0 | ) | 5.2 | |||
| Cash, cash equivalents and restricted cash at beginning of year | 167.6 | 162.4 | ||||
| Cash, cash equivalents and restricted cash at end of year | $ | 45.6 | $ | 167.6 | ||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| REVENUE FROM SERVICES | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| Fourth Quarter | |||||||||||
| % | CC % | ||||||||||
| 2024 | 2023 | Change | Change | ||||||||
| Americas | |||||||||||
| United States | $ | 1,075.5 | $ | 908.7 | 18.4 | % | 18.4 | % | |||
| Canada | 47.5 | 47.6 | (0.4 | ) | 2.1 | ||||||
| Puerto Rico | 28.3 | 25.9 | 9.3 | 9.3 | |||||||
| Mexico | 13.7 | 20.6 | (33.6 | ) | (23.7 | ) | |||||
| Total Americas Region | 1,165.0 | 1,002.8 | 16.2 | 16.5 | |||||||
| Europe | |||||||||||
| Switzerland | 1.1 | 58.3 | (98.0 | ) | (98.0 | ) | |||||
| France | 0.3 | 49.4 | (99.5 | ) | (99.5 | ) | |||||
| Portugal | — | 47.1 | (100.0 | ) | (100.0 | ) | |||||
| Italy | — | 14.4 | (100.0 | ) | (100.0 | ) | |||||
| Other | 8.8 | 49.4 | (82.2 | ) | (82.5 | ) | |||||
| Total Europe Region | 10.2 | 218.6 | (95.3 | ) | (95.4 | ) | |||||
| Total Asia-Pacific Region | 15.9 | 10.8 | 47.7 | 44.4 | |||||||
| Total Kelly Services, Inc. | $ | 1,191.1 | $ | 1,232.2 | (3.3 | ) | % | (3.1 | ) | % | |
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| REVENUE FROM SERVICES | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| December Year to Date | |||||||||||
| % | CC % | ||||||||||
| 2024 | 2023 | Change | Change | ||||||||
| Americas | |||||||||||
| United States | $ | 3,876.9 | $ | 3,555.8 | 9.0 | % | 9.0 | % | |||
| Canada | 188.6 | 189.8 | (0.7 | ) | 0.8 | ||||||
| Puerto Rico | 108.0 | 107.0 | 0.9 | 0.9 | |||||||
| Mexico | 60.7 | 75.7 | (19.8 | ) | (18.0 | ) | |||||
| Total Americas Region | 4,234.2 | 3,928.3 | 7.8 | 7.9 | |||||||
| Europe | |||||||||||
| Switzerland | 4.0 | 224.2 | (98.2 | ) | (98.2 | ) | |||||
| France | 0.4 | 194.4 | (99.8 | ) | (99.8 | ) | |||||
| Portugal | — | 189.4 | (100.0 | ) | (100.0 | ) | |||||
| Italy | — | 63.9 | (100.0 | ) | (100.0 | ) | |||||
| Other | 37.5 | 191.8 | (80.5 | ) | (80.8 | ) | |||||
| Total Europe Region | 41.9 | 863.7 | (95.1 | ) | (95.2 | ) | |||||
| Total Asia-Pacific Region | 55.7 | 43.7 | 27.6 | 27.8 | |||||||
| Total Kelly Services, Inc. | $ | 4,331.8 | $ | 4,835.7 | (10.4 | ) | % | (10.3 | ) | % | |
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||
| RECONCILIATION OF NON-GAAP MEASURES | |||
| FOURTH QUARTER | |||
| (UNAUDITED) | |||
| (In millions of dollars) | |||
| Fourth Quarter | December Year to Date | ||||||||||||||
| SG&A Expenses: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| As reported | $ | 217.4 | $ | 230.9 | $ | 818.4 | $ | 934.7 | |||||||
| Transaction adjustments (costs)(6) | 0.8 | (6.9 | ) | (9.5 | ) | (6.9 | ) | ||||||||
| Restructuring(7) | 0.3 | (7.9 | ) | (6.1 | ) | (35.5 | ) | ||||||||
| Integration costs(3) | (3.9 | ) | — | (10.0 | ) | — | |||||||||
| Executive transition costs(4) | (2.3 | ) | — | (2.3 | ) | — | |||||||||
| Adjusted SG&A expenses | $ | 212.3 | $ | 216.1 | $ | 790.5 | $ | 892.3 | |||||||
| Fourth Quarter | December Year to Date | ||||||||||||||
| Earnings from Operations: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| As reported | $ | (56.7 | ) | $ | 7.3 | $ | (15.1 | ) | $ | 24.3 | |||||
| Goodwill impairment charge(1) | 72.8 | — | 72.8 | — | |||||||||||
| Asset impairment charge(2) | 8.0 | — | 13.5 | 2.4 | |||||||||||
| Integration costs(3) | 3.9 | — | 10.0 | — | |||||||||||
| Executive transition costs(4) | 2.3 | — | 2.3 | — | |||||||||||
| Transaction (adjustments) costs(6) | (0.8 | ) | 6.9 | 9.5 | 6.9 | ||||||||||
| Restructuring(7) | (0.3 | ) | 7.9 | 6.1 | 35.5 | ||||||||||
| Gain on sale of assets(8) | — | — | (5.4 | ) | — | ||||||||||
| Gain on sale of EMEA staffing operations(10) | — | — | (1.6 | ) | — | ||||||||||
| Adjusted earnings from operations | $ | 29.2 | $ | 22.1 | $ | 92.1 | $ | 69.1 | |||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES |
| RECONCILIATION OF NON-GAAP MEASURES |
| (UNAUDITED) |
| (In millions of dollars except per share data) |
| Fourth Quarter | December Year to Date | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Income tax expense (benefit) | $ | (23.8 | ) | $ | (6.5 | ) | $ | (21.3 | ) | $ | (11.5 | ) | |||
| Taxes on goodwill impairment charge(1) | 18.4 | — | 18.4 | — | |||||||||||
| Taxes on asset impairment charge(2) | 2.0 | — | 3.4 | 0.6 | |||||||||||
| Taxes on integration costs(3) | 1.0 | — | 2.6 | — | |||||||||||
| Taxes on executive transition costs(4) | 0.6 | — | 0.6 | — | |||||||||||
| Taxes on gain on equity securities(5) | (0.8 | ) | — | (0.8 | ) | — | |||||||||
| Taxes on transaction costs(6) | 0.6 | 0.5 | 3.7 | 0.5 | |||||||||||
| Taxes on restructuring(7) | (0.1 | ) | 2.0 | 1.5 | 8.9 | ||||||||||
| Taxes on gain on sale of assets(8) | — | — | (1.4 | ) | — | ||||||||||
| Taxes on loss on forward contract(9) | — | 0.9 | — | 0.9 | |||||||||||
| Taxes on gain on sale of EMEA staffing operations(10) | — | — | (1.2 | ) | — | ||||||||||
| Tax adjustments on EMEA staffing transaction(11) | — | (7.7 | ) | — | (7.7 | ) | |||||||||
| Adjusted income tax expense (benefit) | $ | (2.1 | ) | $ | (10.8 | ) | $ | 5.5 | $ | (8.3 | ) | ||||
| Fourth Quarter | December Year to Date | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earnings (loss) | $ | (31.8 | ) | $ | 11.4 | $ | (0.6 | ) | $ | 36.4 | |||||
| Goodwill impairment charge, net of taxes(1) | 54.4 | — | 54.4 | — | |||||||||||
| Asset impairment charge, net of taxes(2) | 6.0 | — | 10.1 | 1.8 | |||||||||||
| Integration costs, net of taxes(3) | 2.9 | — | 7.4 | $ | — | ||||||||||
| Executive transition costs, net of taxes(4) | 1.7 | — | 1.7 | $ | — | ||||||||||
| Gain on equity securities, net of taxes(5) | (3.0 | ) | — | (3.0 | ) | — | |||||||||
| Transaction (adjustments) costs, net of taxes(6) | (0.9 | ) | 6.4 | 14.2 | 6.4 | ||||||||||
| Restructuring, net of taxes(7) | (0.2 | ) | 5.9 | 4.6 | 26.6 | ||||||||||
| Gain on sale of assets, net of taxes(8) | — | — | (4.0 | ) | — | ||||||||||
| (Gain) loss on forward contract, net of taxes(9) | — | 2.7 | (1.2 | ) | 2.7 | ||||||||||
| Gain on sale of EMEA staffing operations, net of taxes(10) | — | — | (0.4 | ) | — | ||||||||||
| Tax adjustments on EMEA staffing transaction(11) | — | 7.7 | — | 7.7 | |||||||||||
| Adjusted net earnings | $ | 29.1 | $ | 34.1 | $ | 83.2 | $ | 81.6 | |||||||
| Fourth Quarter | December Year to Date | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Per Share | Per Share | ||||||||||||||
| Net earnings (loss) | $ | (0.90 | ) | $ | 0.31 | $ | (0.02 | ) | $ | 0.98 | |||||
| Goodwill impairment charge, net of taxes(1) | 1.53 | — | 1.53 | — | |||||||||||
| Asset impairment charge, net of taxes(2) | 0.17 | — | 0.28 | 0.05 | |||||||||||
| Integration costs, net of taxes(3) | 0.08 | — | 0.21 | — | |||||||||||
| Executive transition costs, net of taxes(4) | 0.05 | — | 0.05 | — | |||||||||||
| Gain on equity securities, net of taxes(5) | (0.08 | ) | — | (0.08 | ) | — | |||||||||
| Transaction (adjustments) costs, net of taxes(6) | (0.02 | ) | 0.18 | 0.40 | 0.17 | ||||||||||
| Restructuring, net of taxes(7) | (0.01 | ) | 0.16 | 0.13 | 0.72 | ||||||||||
| Gain on sale of assets, net of taxes(8) | — | — | (0.11 | ) | — | ||||||||||
| (Gain) loss on forward contract, net of taxes(9) | — | 0.07 | (0.03 | ) | 0.07 | ||||||||||
| Gain on sale of EMEA staffing operations, net of taxes(10) | — | — | (0.01 | ) | — | ||||||||||
| Tax adjustments on EMEA staffing transaction(11) | — | 0.21 | — | 0.21 | |||||||||||
| Adjusted net earnings | $ | 0.82 | $ | 0.93 | $ | 2.34 | $ | 2.20 | |||||||
Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||
| (UNAUDITED) | |||||||
| (In millions of dollars) | |||||||
| Adjusted EBITDA: | ||||||||||||||||
| Fourth Quarter | December Year to Date | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net earnings (loss) | $ | (31.8 | ) | $ | 11.4 | $ | (0.6 | ) | $ | 36.4 | ||||||
| Other (income) expense, net | 2.2 | (1.2 | ) | 3.3 | (4.2 | ) | ||||||||||
| Income tax expense (benefit) | (23.8 | ) | (6.5 | ) | (21.3 | ) | (11.5 | ) | ||||||||
| Depreciation and amortization | 14.3 | 10.4 | 51.5 | 40.1 | ||||||||||||
| Goodwill impairment charge(1) | 72.8 | — | 72.8 | — | ||||||||||||
| Asset impairment charge(2) | 8.0 | — | 13.5 | 2.4 | ||||||||||||
| Integration costs(3) | 3.9 | — | 10.0 | — | ||||||||||||
| Executive transition costs(4) | 2.3 | — | 2.3 | — | ||||||||||||
| Gain on equity securities(5) | (3.8 | ) | — | (3.8 | ) | — | ||||||||||
| Transaction (adjustments) costs(6) | (0.3 | ) | 6.9 | 17.9 | 6.9 | |||||||||||
| Restructuring(7) | (0.3 | ) | 7.9 | 6.1 | 35.5 | |||||||||||
| Gain on sale of assets(8) | — | — | (5.4 | ) | — | |||||||||||
| Gain on sale of EMEA staffing operations(10) | — | — | (1.6 | ) | — | |||||||||||
| (Gain) loss on forward contract(9) | — | 3.6 | (1.2 | ) | 3.6 | |||||||||||
| Other, net | — | — | — | 0.2 | ||||||||||||
| Adjusted EBITDA | $ | 43.5 | $ | 32.5 | $ | 143.5 | $ | 109.4 | ||||||||
| Adjusted EBITDA margin | 3.7 | % | 2.6 | % | 3.3 | % | 2.3 | % | ||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES |
| RECONCILIATION OF NON-GAAP MEASURES |
| (UNAUDITED) |
| (In millions of dollars) |
| Business Unit Adjusted EBITDA: | Fourth Quarter 2024 | ||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 11.7 | $ | (50.7 | ) | $ | 16.4 | $ | 2.2 | $ | — | ||||||||
| Goodwill impairment charge(1) | — | 72.8 | — | — | — | ||||||||||||||
| Integration costs(3) | — | 0.2 | — | — | — | ||||||||||||||
| Restructuring(7) | (0.1 | ) | — | — | (0.1 | ) | — | ||||||||||||
| Adjusted EBITDA | $ | 11.6 | $ | 22.3 | $ | 16.4 | $ | 2.1 | $ | — | |||||||||
| Adjusted EBITDA margin | 3.0 | % | 5.6 | % | 5.7 | % | 1.7 | % | — | % | |||||||||
| Fourth Quarter 2023 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 8.3 | $ | 17.9 | $ | 14.1 | $ | 0.6 | $ | (2.6 | ) | ||||||||
| Transaction costs(6) | — | 0.4 | — | — | 2.7 | ||||||||||||||
| Restructuring(7) | (0.6 | ) | — | — | 0.7 | — | |||||||||||||
| Adjusted EBITDA | $ | 7.7 | $ | 18.3 | $ | 14.1 | $ | 1.3 | $ | 0.1 | |||||||||
| Adjusted EBITDA margin | 2.1 | % | 6.4 | % | 5.5 | % | 1.1 | % | — | % | |||||||||
| December Year-to-Date 2024 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 34.7 | $ | 17.0 | $ | 43.9 | $ | 5.7 | $ | — | |||||||||
| Goodwill impairment charge(1) | — | 72.8 | — | — | — | ||||||||||||||
| Restructuring(7) | 0.3 | 0.3 | — | 0.4 | — | ||||||||||||||
| Integration costs(3) | — | 0.2 | — | — | — | ||||||||||||||
| Adjusted EBITDA | $ | 35.0 | $ | 90.3 | $ | 43.9 | $ | 6.1 | $ | — | |||||||||
| Adjusted EBITDA margin | 2.4 | % | 6.3 | % | 4.5 | % | 1.3 | % | — | % | |||||||||
| December Year-to-Date 2023 | |||||||||||||||||||
| Professional & Industrial | Science, Engineering & Technology | Education | Outsourcing & Consulting | International | |||||||||||||||
| Business unit profit (loss) | $ | 16.0 | $ | 75.0 | $ | 36.3 | $ | 2.2 | $ | (1.9 | ) | ||||||||
| Transaction costs(6) | — | 0.4 | — | — | 2.7 | ||||||||||||||
| Asset impairment charge(2) | 0.3 | 0.1 | — | 2.0 | — | ||||||||||||||
| Restructuring(7) | 6.7 | 1.2 | 1.0 | 3.0 | 0.6 | ||||||||||||||
| Adjusted EBITDA | $ | 23.0 | $ | 76.7 | $ | 37.3 | $ | 7.2 | $ | 1.4 | |||||||||
| Adjusted EBITDA margin | 1.5 | % | 6.4 | % | 4.4 | % | 1.6 | % | 0.2 | % | |||||||||
| December Year to Date | |||||||
| Free Cash Flow: | 2024 | 2023 | |||||
| Net cash from operating activities | $ | 26.9 | $ | 76.7 | |||
| Capital expenditures | (11.1 | ) | (15.3 | ) | |||
| Free Cash Flow | $ | 15.8 | $ | 61.4 | |||
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2024 goodwill impairment charge, the 2024 asset impairment charges, the 2024 integration costs, the 2024 executive transition costs, the 2024 gain on equity securities, the 2024 transaction costs, the 2024 restructuring charges, the 2024 gain on sale of assets, the 2024 gain on forward contract, the 2024 gain on the sale of our EMEA staffing operations, the 2023 restructuring charges, the 2023 transaction costs, the 2023 loss on forward contract, the 2023 asset impairment charge and the 2023 tax adjustments related to the sale of our EMEA staffing operations are useful to understand the Company's fiscal 2024 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.
Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (Adjusted EBITDA divided by revenue from services) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets.
These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(1) Goodwill impairment charge in 2024 is driven by changes in market conditions and the result of the Company's annual impairment test related to Softworld.
(2) Asset impairment charge in 2024 for certain right-of-use assets related to our leased headquarters facility reflects adjustments to how we are utilizing the building as part of our ongoing transformation efforts. Asset impairment charge in 2023 represents the impairment of right-of-use assets related to an unoccupied existing office space lease.
(3) Integration costs in 2024 reflect various initiatives aimed at both integrating the MRP acquisition and further aligning processes and technology across the Company.
(4) Executive transition costs represent non-recurring expenses associated with our CFO transition in the fourth quarter of 2024.
(5) Gain on equity securities includes a
(6) Transaction costs in 2024 includes employee termination costs and transition costs related to the sale of the EMEA staffing operations, costs and adjustments related to the acquisition of MRP and an adjustment to the indemnification related to our former Brazil operations. Costs related to the sale of the EMEA staffing operations were
(7) Restructuring charges in the first six months of 2024 represent a continuation of the comprehensive transformation initiative that started in the second quarter of 2023 to further streamline the Company's operating model to enhance organizational efficiency and effectiveness. There was a
(8) Gain on sale of assets represents the sale of Ayers Group in the second quarter of 2024.
(9) Gain on forward contract in 2024 represents the settlement of the foreign currency forward contract in January 2024 relating to the sale of our EMEA staffing operations. Loss on forward contract in 2023 represents the unrealized mark-to-market losses on the foreign currency forward contract the Company entered into in the fourth quarter of 2023 to mitigate the exchange rate risk associated with the future cash proceeds for the sale of the EMEA staffing operations.
(10) Gain on sale of EMEA staffing operations represents the gain as a result of the sale in January 2024.
(11) Tax adjustments in 2023, related to the January 2024 sale of the EMEA staffing operations, include a
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