Kelly Services sees slight fall in revenue in Q4 2018
Kelly Services has released its results for the fourth quarter of 2018.
George S. Corona, president and chief executive officer, announced revenue for the fourth quarter of 2018 totalled $1.4 billion, a 0.5% decrease, or an increase of 0.6% in constant currency, compared to the corresponding quarter of 2017.
Earnings from operations for the fourth quarter of 2018 totalled $33.1m, compared to the $28.4m reported for the fourth quarter of 2017.
Diluted losses per share in the fourth quarter of 2018 were $0.62 compared to earnings per share of $0.45 in the fourth quarter of 2017. Included in the loss per share in the fourth quarter of 2018 is the unfavourable impact of $1.49 due to the non-cash after-tax loss on its investment in Persol Holdings common stock. Effective in 2018, changes in the fair value of its investment in Persol Holdings common stock are reflected as gains or losses on its consolidated statement of earnings below earnings from operations. Adjusted for the non-cash after-tax loss on Persol Holdings common stock, diluted earnings per share for the quarter were $0.87. Earnings per share in the fourth quarter of 2017 were unfavourably impacted by the $0.35 non-cash, tax charge resulting from the Tax Cuts and Job Act and were $0.80 on an adjusted basis.
Diluted earnings per share for the full year of 2018 were $0.58 compared to $1.81 for 2017. Full-year earnings per share for 2018 were unfavourably impacted by the $1.69 non-cash after tax loss on Persol Holdings common stock. 2017 earnings per share were unfavourably impacted by the $0.35 non-cash income tax charge resulting from the Tax Cuts and Jobs Act and by the $0.04 restructuring charge, net of tax. On an adjusted basis, diluted earnings per share were $2.27 in 2018 compared to $2.20 in 2017. The impact of these adjustments are more fully described in our included reconciliation of non-GAAP measures.
“The company delivered a good quarter and a solid year in a challenging labor market,” said Corona. “We are pleased with the flexibility and resourcefulness of our Kelly team members, and with the strategic investments we made in people, products and technology. We are optimistic about 2019, knowing these strategic investments will help us capitalize on the expanding specialty talent solutions markets, where there are abundant opportunities for growth and increased profitability.”
Photo courtesy of Shutterstock.com