Kelly Services, Inc. reported a significant decline in its financial performance for the fiscal year ending December 29, 2024, with total revenue from services falling to $4.33 billion, a decrease of 10.4% from $4.84 billion in 2023. The company's gross profit also decreased by 8.2% to $882.6 million, down from $961.4 million the previous year. The net loss for the year was $0.6 million, a stark contrast to net earnings of $36.4 million in 2023. This downturn was attributed primarily to the sale of its European staffing operations and a goodwill impairment charge of $72.8 million related to its Softworld reporting unit.
In terms of operational changes, Kelly Services underwent a strategic transformation in 2023, which continued into 2024. The company sold its EMEA staffing operations on January 2, 2024, and acquired Motion Recruitment Partners, LLC (MRP) on May 31, 2024, for $425 million. This acquisition is expected to enhance Kelly's capabilities in technology and consulting solutions. Additionally, the company acquired Children's Therapy Center (CTC) in November 2024, further expanding its offerings in the education sector.
The company's restructuring efforts have led to a reduction in selling, general, and administrative (SG&A) expenses, which decreased by 12.4% to $818.4 million in 2024, down from $934.7 million in 2023. This reduction was partly due to lower direct salaries and proactive resource management in response to decreased revenue. The company also reported a decrease in its employee headcount, with approximately 4,200 staff members in the U.S. and 1,370 internationally as of December 29, 2024.
Geographically, Kelly Services saw a notable shift in its revenue sources. The Americas accounted for the majority of its revenue, with the U.S. generating $3.88 billion, while the European segment was significantly impacted by the sale of its operations, resulting in no revenue from that region in 2024. The company placed over 400,000 workers globally in 2024, reflecting its continued focus on staffing solutions despite the challenging market conditions.
Looking ahead, Kelly Services aims to leverage its recent acquisitions and ongoing transformation initiatives to drive growth and improve profitability. The company is focused on enhancing its service delivery model and expanding its higher-margin specialties, particularly in the education and technology sectors. Management remains optimistic about capturing growth opportunities in the North American market and expects to see improvements in its EBITDA margin as these strategic initiatives take effect.
About KELLY SERVICES INC
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.