Kelly Services-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 and a significant increase in adjusted EBITDA [2][5][6]. Financial Performance - Q4 revenue was $1.2 billion, a decrease of 3.3% year-over-year, but an increase of 4.4% on an organic basis. Full-year revenue totaled$ 4.3 billion, down 10.4% as reported, but up 0.5% organically [5][6]. - Q4 operating loss was $56.7 million, impacted by$ 80.8 million in non-cash impairment charges. 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]. - For the full year, adjusted EBITDA was $143.5 million, a 31% increase compared to the previous year, with an adjusted EBITDA margin of 3.3%, an increase of 100 basis points [5][6]. Strategic Developments - The company achieved 100 basis points of net margin expansion and unlocked over$ 100 million in capital through operational streamlining, which was redeployed towards the acquisition of Motion Recruitment Partners [2][5]. - The planned retirement of CEO Peter Quigley by the end of 2025 was announced, with a search for his successor already initiated [9][10]. Shareholder Returns - A quarterly cash dividend of $0.075 per share was declared, payable on March 12, 2025, to stockholders of record as of February 26, 2025 [11]. - The company executed share repurchases totaling$ 10 million during Q4 2024 as part of its share repurchase program [11]. Financial Outlook - The company anticipates incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025, assuming stable staffing market conditions in the first half of the year [13].