Kelly (NASDAQ: KELYA) reported fourth-quarter revenue fell 7.8% year over year in constant currency amid the ongoing pandemic; the decrease was 12.1% when also adjusting for the impact of an additional week in 2020. But the Troy, Michigan-based staffing giant cited sequential improvements in the fourth quarter; in contrast, third-quarter revenue was down 18.2% year over year in constant currency.
“Each of Kelly’s five operating segments reported sequential revenue improvement in the fourth quarter, continuing the trend of top-line growth we’ve seen each quarter since the low point of the Covid-19 crisis,” President and CEO Peter Quigley said. “Our OCG segment showed particular strength and resilience, surpassing pre-Covid revenue levels.”
Kelly OCG — or Outsourcing and Consulting Group — includes MSP, payroll process outsourcing, RPO and talent advisory services.
| (US$ millions) | Q4 2020 | Q4 2019 | % change | % constant currency |
| Revenue | $1,241.4 | $1,337.8 | -7.2% | -7.8% |
| Gross profit | $224.1 | $245.1 | -8.5% | -9.1% |
| Gross margin | 18.1% | 18.3% | ||
| Net earnings | $23.4 | $17.0 | 37.6% |
The fourth quarter of 2020 included a $4.4 million restructuring charge. The 2019 fourth quarter included an asset impairment charge of $15.8 million related to technology development.
Revenue by segment
| (US$ millions) | Q4 2020 | Q4 2019 | % change | % constant currency |
| Professional & industrial | $511.7 | $544.7 | -6.1% | -6.1% |
| Science, engineering and technology | $257.6 | $272.1 | -5.3% | -5.3% |
| Education | $91.8 | $136.8 | -32.9% | -32.9% |
| Outsourcing & consulting | $102.5 | $95.4 | 7.5% | 6.6% |
| International | $278.0 | $288.9 | -3.8% | -6.1% |
Revenue by geography
| (US$ millions) | Q4 2020 | Q4 2019 | % change | % constant currency |
| Americas | ||||
| United States | $891.0 | $979.1 | -9.0% | -9.0% |
| Mexico | $35.8 | $34.0 | 5.3% | 12.4% |
| Canada | $33.8 | $35.3 | -4.2% | -5.3% |
| Puerto Rico | $20.9 | $17.0 | 23.8% | 23.8% |
| Brazil | – | $9.0 | – | – |
| Europe, Middle East and Africa | ||||
| France | $57.0 | $60.0 | -5.0% | -11.8% |
| Switzerland | $59.2 | $50.7 | 16.7% | 6.6% |
| Portugal | $42.6 | $44.3 | -3.9% | -10.7% |
| Russia | $29.9 | $33.5 | -10.8% | 6.7% |
| United Kingdom | $17.2 | $21.5 | -19.8% | -21.8% |
| Italy | $15.7 | $16.1 | -2.1% | -9.0% |
| Germany | $8.0 | $9.1 | -11.8% | -18.1% |
| Ireland | $5.9 | $5.0 | 19.2% | 10.7% |
| Other Europe | $15.9 | $16.0 | -1.0% | -4.6% |
| Asia Pacific | ||||
| Total APAC | $8.5 | $7.2 | 16.9% | 12.1% |
Full-year results
| (US$ millions) | FY 2020 | FY 2019 | % change | % constant currency |
| Revenue | $4,516.0 | $5,355.6 | -15.7% | -15.5% |
| Gross profit | $827.6 | $968.4 | -14.5% | -14.4% |
| Gross margin | 18.3% | 18.1% | ||
| Net earnings | ($72.0) | $112.4 | nm |
Guidance
Kelly reports full-year revenue for 2021 will rise between 7% and 11%.
Share price and market cap
KELYA shares were down 1.16% to $20.52 as of 11:58 a.m. Eastern time; they were 10.78% below their 52-week high, according to FT.com. The company had a market cap of $815.9 million.