Kelly Reports Fourth-Quarter and Full-Year 2024 Earnings

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 $100 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 $4.3 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 $80.8 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 $43.5 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 $0.075 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]