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Kelly Services Inc. Class A Common Stock (KELYA+1.39%) has submitted its Form 10-K filing for the fiscal year ended December 29, 2024.
The filing reports a decrease in revenue from services to $4,331.8 million, down from $4,835.7 million in the previous year. This decline is primarily attributed to the sale of its EMEA staffing operations.
The company reported a gross profit of $882.6 million, with a gross profit rate of 20.4%, slightly up from 19.9% in the prior year. The increase in the gross profit rate was driven by the sale of the EMEA staffing operations and the acquisition of Motion Recruitment Partners.
Total selling, general and administrative expenses decreased by 12.4% to $818.4 million, reflecting lower restructuring and transformation charges compared to the previous year.
Kelly Services recorded a goodwill impairment charge of $72.8 million related to its Softworld reporting unit due to continued challenging market conditions.
The company completed the sale of its EMEA staffing operations and recorded a gain of $1.6 million. It also sold its Ayers Group division, resulting in a gain of $5.4 million.
Net loss for the year was $0.6 million, compared to net earnings of $36.4 million in 2023. The decrease was primarily due to the goodwill impairment charge.
Kelly Services reported a tax benefit of $21.3 million, influenced by lower pretax earnings and an $18.5 million tax benefit from the impairment of tax-deductible goodwill.
The company completed the acquisition of Motion Recruitment Partners for $444.8 million and Children's Therapy Center for $3.1 million, expanding its capabilities in talent solutions and therapeutic services.
Kelly Services ended the year with $45.6 million in cash and equivalents, and $239.4 million in long-term debt, primarily due to the acquisition of Motion Recruitment Partners.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kelly Services Inc. Class A Common Stock annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.