Revenue 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] - Full-year revenue totaled $4.3 billion, down 10.4% as reported, but up 0.5% on an organic basis[12] - Revenue from services decreased to $4,331.8 million in 2024 from $4,835.7 million in 2023, a decline of 10.4%[20] - Revenue from services decreased by 3.3% year-over-year, totaling $1,191.1 million in Q4 2024 compared to $1,232.2 million in Q4 2023[33] - The Americas region saw a revenue increase of 16.2%, with the United States contributing $1,075.5 million, up from $908.7 million in the previous year[33] - The acquisition of Motion Recruitment Partners contributed 9.8% to reported Q4 year-over-year revenue growth[6] - The Science, Engineering & Technology segment saw a revenue increase of 37.9%, reaching $396.1 million in 2024 from $287.3 million in 2023[23] - The Professional & Industrial segment reported a revenue increase of 4.4%, totaling $384.2 million in 2024 compared to $368.1 million in 2023[23] - The Education segment's revenue grew by 12.1%, reaching $289.2 million in 2024 from $258.0 million in 2023[23] - The Outsourcing & Consulting segment's revenue increased by 8.8%, totaling $122.3 million in 2024 compared to $112.3 million in 2023[23] Profitability and Earnings - Q4 adjusted EBITDA was $43.5 million, up 34% year-over-year, with an adjusted EBITDA margin of 3.7%, an increase of 110 basis points[5] - Adjusted operating income for the full year was $92.1 million, with adjusted EBITDA of $143.5 million, reflecting a 31% increase compared to the prior year[12] - Adjusted EBITDA increased to $143.5 million, representing a growth of 34.1% compared to $109.4 million in 2023[20] - In Q4 2024, net earnings were $(31.8) million compared to $11.4 million in Q4 2023, reflecting a significant decline[39] - Adjusted net earnings for Q4 2024 were $29.1 million, down from $34.1 million in Q4 2023, indicating a decrease of approximately 14.7%[39] - Adjusted EBITDA for Q4 2024 was $43.5 million, an increase of 33.1% from $32.5 million in Q4 2023, with an adjusted EBITDA margin of 3.7% compared to 2.6%[41] - The company reported a net loss of $0.6 million in 2024, a significant decline from net earnings of $36.4 million in 2023[20] - Basic earnings per share decreased to $(0.02) in 2024 from $0.99 in 2023, reflecting a drop of 102.0%[20] Costs and Charges - The company reported an operating loss of $56.7 million in Q4, primarily due to $80.8 million in non-cash impairment charges[6] - The company reported a goodwill impairment charge of $72.8 million in Q4 2024, impacting overall earnings from operations[36] - Goodwill impairment charge for Q4 2024 was $54.4 million, which significantly impacted net earnings[39] - The 2024 goodwill impairment charge is influenced by market conditions and results from the annual impairment test related to Softworld[48] - The asset impairment charge in 2024 for certain right-of-use assets is due to adjustments in the utilization of the leased headquarters facility[48] - Integration costs in 2024 are associated with the MRP acquisition and aligning processes and technology across the company[49] - Transaction costs in 2024 related to the sale of EMEA staffing operations amounted to $12.0 million for the year, with $3.1 million in Q4 2024[51] - Restructuring charges for 2024 include $3.0 million of severance and $3.1 million for transformation execution, while 2023 restructuring charges totaled $17.7 million[53] Financial Position - Total assets increased to $2,632.3 million in 2024 from $2,581.6 million in 2023, representing a growth of 2.0%[29] - Total current liabilities decreased to $826.5 million in 2024 from $1,019.9 million in 2023, a reduction of 18.9%[29] - The current ratio improved to 1.7 in 2024, compared to 1.6 in 2023, indicating better short-term financial health[29] - Total stockholders' equity decreased to $1,234.6 million in 2024 from $1,253.7 million in 2023, a decline of 1.5%[29] Future Outlook - The company expects incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025[5] - The company plans to focus on market expansion and new product development to drive future growth despite recent challenges[30] - The planned retirement of CEO Peter Quigley by the end of 2025 has been announced, with a search for his successor underway[9]
Kelly Services(KELYB) - 2025 Q4 - Annual Results