U.S. 1-800-230-1059 International 1-612-332-0226The pass code is Kelly Services Via the Internet: The call is also available via the internet through the Kelly Services website: www.kellyservices.com This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other factors discussed in this release and in the company's filings with the Securities and Exchange Commission. Actual results may differ materially from any projections contained herein. Kelly Services, Inc. (
KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED DECEMBER 30, 2007 AND DECEMBER 31, 2006
(UNAUDITED)
(In thousands of dollars except per share data)
2007 2006 Change % Change
----------- ----------- --------- --------
Revenue from services $ 1,475,759 $ 1,421,376 $ 54,383 3.8%
Cost of services 1,210,323 1,181,884 28,439 2.4
----------- ----------- --------- --------
Gross profit 265,436 239,492 25,944 10.8
Selling, general and
administrative
expenses 238,895 217,191 21,704 10.0
----------- ----------- --------- --------
Earnings from operations 26,541 22,301 4,240 19.0
Other income, net 1,021 618 403 65.2
----------- ----------- --------- --------
Earnings from continuing
operations before taxes 27,562 22,919 4,643 20.3
Income taxes 9,089 2,591 6,498 250.8
----------- ----------- --------- --------
Earnings from continuing
operations 18,473 20,328 (1,855) (9.1)
Earnings from discontinued
operations, net of tax 158 4,114 (3,956) (96.2)
----------- ----------- --------- --------
Net earnings $ 18,631 $ 24,442 $ (5,811) (23.8)%
=========== =========== ========= ========
Basic earnings per share
Earnings from continuing
operations $ 0.52 $ 0.56 $ (0.04) (7.1)%
Earnings from
discontinued operations - 0.11 (0.11) (100.0)
----------- ----------- --------- --------
Net earnings $ 0.52 $ 0.68 $ (0.16) (23.5)%
=========== =========== ========= ========
Diluted earnings per share
Earnings from continuing
operations $ 0.52 $ 0.56 $ (0.04) (7.1)%
Earnings from
discontinued operations - 0.11 (0.11) (100.0)
----------- ----------- --------- --------
Net earnings $ 0.52 $ 0.67 $ (0.15) (22.4)%
=========== =========== ========= ========
STATISTICS:
Gross profit rate 18.0% 16.8% 1.2%
Selling, general and
administrative expenses:
% of revenue 16.2 15.3 0.9
% of gross profit 90.0 90.7 (0.7)
% Return - Earnings from
operations 1.8 1.6 0.2
Earnings from
continuing
operations before
taxes 1.9 1.6 0.3
Earnings from
continuing
operations 1.3 1.4 (0.1)
Net earnings 1.3 1.7 (0.4)
Effective income tax rate 33.0% 11.3% 21.7%
Average number of shares outstanding
(thousands):
Basic 35,759 36,182
Diluted 35,858 36,524
KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
FOR THE 52 WEEKS ENDED DECEMBER 30, 2007 AND DECEMBER 31, 2006
(In thousands of dollars except per share data)
2007 2006 Change %Change
----------- ----------- ----------- -------
Revenue from services $ 5,667,589 $ 5,546,778 $ 120,811 2.2%
Cost of services 4,678,500 4,640,052 38,448 0.8
----------- ----------- ----------- -------
Gross profit 989,089 906,726 82,363 9.1
Selling, general and
administrative
expenses 909,009 828,685 80,324 9.7
----------- ----------- ----------- -------
Earnings from operations 80,080 78,041 2,039 2.6
Other income, net 3,211 1,471 1,740 118.3
----------- ----------- ----------- -------
Earnings from continuing
operations before taxes 83,291 79,512 3,779 4.8
Income taxes 29,567 22,727 6,840 30.1
----------- ----------- ----------- -------
Earnings from continuing
operations 53,724 56,785 (3,061) (5.4)
Earnings from discontinued
operations, net of tax 7,292 6,706 586 8.7
----------- ----------- ----------- -------
Net earnings $ 61,016 $ 63,491 $ (2,475) (3.9)%
=========== =========== =========== =======
Basic earnings per share
Earnings from continuing
operations $ 1.48 $ 1.58 $ (0.10) (6.3)%
Earnings from
discontinued operations 0.20 0.19 0.01 5.3
----------- ----------- ----------- -------
Net earnings $ 1.68 $ 1.76 $ (0.08) (4.5)%
=========== =========== =========== =======
Diluted earnings per share
Earnings from continuing
operations $ 1.47 $ 1.56 $ (0.09) (5.8)%
Earnings from
discontinued operations 0.20 0.18 0.02 11.1
----------- ----------- ----------- -------
Net earnings $ 1.67 $ 1.75 $ (0.08) (4.6)%
=========== =========== =========== =======
STATISTICS:
Gross profit rate 17.5% 16.3% 1.2%
Selling, general and
administrative expenses:
% of revenue 16.0 14.9 1.1
% of gross profit 91.9 91.4 0.5
% Return - Earnings from
operations 1.4 1.4 0.0
Earnings from
continuing
operations
before taxes 1.5 1.4 0.1
Earnings from
continuing
operations 0.9 1.0 (0.1)
Net earnings 1.1 1.1 0.0
Effective income tax rate 35.5% 28.6% 6.9%
Average number of shares
outstanding
(thousands):
Basic 36,357 35,999
Diluted 36,495 36,314
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In thousands of dollars)
Fourth Quarter
2007 2006 Change %Change
----------- ----------- ----------- -------
Revenue from Services:
Americas - Commercial $ 695,839 $ 739,118 $ (43,279) (5.9)%
Americas - PTSA 292,830 277,347 15,483 5.6
----------- ----------- ----------- -------
Total Americas 988,669 1,016,465 (27,796) (2.7)
International - Commercial 435,034 364,842 70,192 19.2
International - PTSA 52,056 40,069 11,987 29.9
----------- ----------- ----------- -------
Total International 487,090 404,911 82,179 20.3
$ 1,475,759 $ 1,421,376 $ 54,383 3.8%
=========== =========== =========== =======
Earnings from Operations
(As Reported):
Americas - Commercial $ 25,003 $ 29,614 $ (4,611) (15.6)%
Americas - PTSA 17,416 15,085 2,331 15.5
----------- ----------- ----------- -------
Total Americas 42,419 44,699 (2,280) (5.1)
International - Commercial 5,658 255 5,403 NM
International - PTSA 975 251 724 288.4
----------- ----------- ----------- -------
Total International 6,633 506 6,127 NM
Corporate Expense (22,511) (22,904) 393 1.7
----------- ----------- ----------- -------
$ 26,541 $ 22,301 $ 4,240 19.0%
=========== =========== =========== =======
Earnings from Operations
(Excluding Restructuring
Charges):
Americas - Commercial $ 26,445 $ 29,614 $ (3,169) (10.7)%
Americas - PTSA 17,416 15,085 2,331 15.5
----------- ----------- ----------- -------
Total Americas 43,861 44,699 (838) (1.9)
International - Commercial 5,559 255 5,304 NM
International - PTSA 975 251 724 288.4
----------- ----------- ----------- -------
Total International 6,534 506 6,028 NM
Corporate Expense (22,511) (22,904) 393 1.7
----------- ----------- ----------- -------
$ 27,884 $ 22,301 $ 5,583 25.0%
=========== =========== =========== =======
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(In thousands of dollars)
December Year to Date
2007 2006 Change %Change
----------- ----------- ----------- -------
Revenue from Services:
Americas - Commercial $ 2,759,398 $ 2,916,079 $ (156,681) (5.4)%
Americas - PTSA 1,105,752 1,108,329 (2,577) (0.2)
----------- ----------- ----------- -------
Total Americas 3,865,150 4,024,408 (159,258) (4.0)
International - Commercial 1,603,958 1,378,540 225,418 16.4
International - PTSA 198,481 143,830 54,651 38.0
----------- ----------- ----------- -------
Total International 1,802,439 1,522,370 280,069 18.4
$ 5,667,589 $ 5,546,778 $ 120,811 2.2%
=========== =========== =========== =======
Earnings from Operations
(As Reported):
Americas - Commercial $ 88,054 $ 102,935 $ (14,881) (14.5)%
Americas - PTSA 59,161 58,090 1,071 1.8
----------- ----------- ----------- -------
Total Americas 147,215 161,025 (13,810) (8.6)
International - Commercial 10,064 567 9,497 NM
International - PTSA 2,717 641 2,076 323.9
----------- ----------- ----------- -------
Total International 12,781 1,208 11,573 NM
Corporate Expense (79,916) (84,192) 4,276 5.1
----------- ----------- ----------- -------
$ 80,080 $ 78,041 $ 2,039 2.6%
=========== =========== =========== =======
Earnings from Operations
(Excluding Restructuring
Charges):
Americas - Commercial $ 91,007 $ 102,935 $ (11,928) (11.6)%
Americas - PTSA 59,161 58,090 1,071 1.8
----------- ----------- ----------- -------
Total Americas 150,168 161,025 (10,857) (6.7)
International - Commercial 16,000 567 15,433 NM
International - PTSA 2,717 641 2,076 323.9
----------- ----------- ----------- -------
Total International 18,717 1,208 17,509 NM
Corporate Expense (79,916) (84,192) 4,276 5.1
----------- ----------- ----------- -------
$ 88,969 $ 78,041 $ 10,928 14.0%
=========== =========== =========== =======
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSTANT CURRENCY
REVENUE FROM SERVICES TO REPORTED REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
Fourth Quarter
2007 2006 Change %Change
----------- ----------- ---------- -------
Revenue from services -
constant currency*:
Americas - Commercial $ 686,725 $ 739,118 $ (52,393) (7.1)%
Americas - PTSA 292,241 277,347 14,894 5.4
----------- ----------- ---------- -------
Total Americas - constant
currency* 978,966 1,016,465 (37,499) (3.7)
International - Commercial 393,868 364,842 29,026 8.0
International - PTSA 46,942 40,069 6,873 17.2
----------- ----------- ---------- -------
Total International -
constant currency* 440,810 404,911 35,899 8.9
Total revenue from services
- constant currency* 1,419,776 1,421,376 (1,600) (0.1)%
Foreign currency impact 55,983 55,983
----------- ----------- ---------- -------
Revenue from services $ 1,475,759 $ 1,421,376 $ 54,383 3.8%
=========== =========== ========== =======
December Year to Date
2007 2006 Change %Change
----------- ----------- ---------- -------
Revenue from services -
constant currency*:
Americas - Commercial $ 2,745,728 $ 2,916,079 $ (170,351) (5.8)%
Americas - PTSA 1,104,880 1,108,329 (3,449) (0.3)
----------- ----------- ---------- -------
Total Americas - constant
currency* 3,850,608 4,024,408 (173,800) (4.3)
International - Commercial 1,479,957 1,378,540 101,417 7.4
International - PTSA 182,763 143,830 38,933 27.1
----------- ----------- ---------- -------
Total International -
constant currency* 1,662,720 1,522,370 140,350 9.2
Total revenue from services
- constant currency* 5,513,328 5,546,778 (33,450) (0.6)%
Foreign currency impact 154,261 154,261
----------- ----------- ---------- -------
Revenue from services $ 5,667,589 $ 5,546,778 $ 120,811 2.2%
=========== =========== ========== =======
* Information on constant currencies is provided to allow
investors to separate the impact of foreign currency
translations on reported results. Constant currency results
are calculated by translating the current year results at prior
year average exchange rates.
KELLY SERVICES, INC. AND SUBSIDIARIES
SUMMARY OF DISCONTINUED OPERATIONS
(UNAUDITED)
(In thousands of dollars)
December
Fourth Quarter Year to Date
---------------- -----------------
2007 2006 2007 2006
------- -------- -------- --------
Revenue from services $ - $ 22,347 $ 14,777 $ 92,247
Operating (loss) income from
discontinued operations $ (119) $ 2,973 $ 1,454 $ 7,248
Less: Income taxes (277) 1,113 328 2,796
------- -------- -------- --------
Earnings from discontinued operations,
net of tax 158 1,860 1,126 4,452
------- -------- -------- --------
Gain on sale of discontinued operations - 3,731 10,153 3,731
Less: Income taxes - 1,477 3,987 1,477
------- -------- -------- --------
Gain on sale of discontinued
operations, net of tax - 2,254 6,166 2,254
------- -------- -------- --------
Discontinued operations, net of tax $ 158 $ 4,114 $ 7,292 $ 6,706
======= ======== ======== ========
Effective March 31, 2007, the Company sold Kelly Home Care ("KHC"), a
wholly owned subsidiary. Effective December 31, 2006, the Company sold
Kelly Staff Leasing ("KSL"), a wholly owned subsidiary. The operating
results for KHC and KSL, as well as the gains on the sales of
KHC and KSL, have been excluded from earnings from continuing operations.
This schedule provides information on KHC's and KSL's results from
operations for the fourth quarter of 2007 and 2006 and year to date 2007
and 2006, as well as the gains on the sales of KHC and KSL, all of which
are included as discontinued operations on the face of the statements of
earnings.
KELLY SERVICES, INC. AND SUBSIDIARIES
BALANCE SHEETS
(In thousands of dollars)
December 30, December 31,
2007 2006
------------- -------------
Current Assets
Cash and equivalents $ 92,817 $ 118,428
Trade accounts receivable, less allowances
of $18,172 and $16,818, respectively 888,334 838,246
Prepaid expenses and other current assets 53,392 45,316
Deferred taxes 29,294 29,543
------------- -------------
Total current assets 1,063,837 1,031,533
Property and Equipment, Net 178,019 170,288
Noncurrent Deferred Taxes 43,436 35,437
Goodwill, Net 147,168 96,504
Other Assets 141,537 135,662
------------- -------------
Total Assets $ 1,573,997 $ 1,469,424
============= =============
Current Liabilities
Short-term borrowings $ 49,729 $ 68,928
Accounts payable 171,471 132,819
Accrued payroll and related taxes 270,575 274,284
Accrued insurance 23,696 24,191
Income and other taxes 69,779 68,055
------------- -------------
Total current liabilities 585,250 568,277
Noncurrent Liabilities
Long-term debt 48,394 -
Accrued insurance 60,404 57,277
Accrued retirement benefits 78,382 71,990
Other long-term liabilities 13,338 13,323
------------- -------------
Total noncurrent liabilities 200,518 142,590
Stockholders' Equity
Common stock 40,116 40,116
Treasury stock (106,312) (78,841)
Paid-in capital 34,500 32,048
Earnings invested in the business 777,338 735,104
Accumulated other comprehensive income 42,587 30,130
------------- -------------
Total stockholders' equity 788,229 758,557
------------- -------------
Total Liabilities and Stockholders' Equity $ 1,573,997 $ 1,469,424
============= =============
STATISTICS:
Working Capital $ 478,587 $ 463,256
Current Ratio 1.8 1.8
Debt-to-capital % 11.1% 8.3%
Global Days Sales Outstanding 55 54
KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED DECEMBER 30, 2007 AND DECEMBER 31, 2006
(In thousands of dollars)
2007 2006
--------- ---------
Cash flows from operating activities
Net earnings $ 61,016 $ 63,491
Noncash adjustments:
Depreciation and amortization 42,601 41,730
Provision for bad debts 6,654 5,178
Stock-based compensation 3,941 5,286
Gain on sale of discontinued operations (6,166) (2,254)
Other, net (573) (405)
Changes in operating assets and liabilities (34,129) 3,239
--------- ---------
Net cash from operating activities 73,344 116,265
--------- ---------
Cash flows from investing activities
Capital expenditures (45,975) (45,526)
Proceeds from sale of discontinued operations 12,500 6,500
Acquisition of companies, net of cash received (48,417) (4,663)
Investment in unconsolidated affiliate - (20,729)
Other investing activities (532) (550)
--------- ---------
Net cash from investing activities (82,424) (64,968)
--------- ---------
Cash flows from financing activities
Net increase (decrease) in revolving line of
credit 17,500 (11,022)
Proceeds from debt 57,277 20,729
Repayment of debt (49,054) -
Dividend payments (19,114) (16,420)
Purchase of treasury stock (34,703) -
Stock options and other stock sales 5,781 10,973
Other financing activities (165) (2,873)
--------- ---------
Net cash from financing activities (22,478) 1,387
--------- ---------
Effect of exchange rates on cash and equivalents 5,947 2,045
--------- ---------
Net change in cash and equivalents (25,611) 54,729
Cash and equivalents at beginning of period 118,428 63,699
--------- ---------
Cash and equivalents at end of period $ 92,817 $ 118,428
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
Fourth Quarter
---------------------------------------------
% Change
Constant
2007 2006 US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 881,640 $ 910,698 (3.2)% (3.2)%
Canada 69,041 66,741 3.4 (11.0)
Puerto Rico 19,431 19,362 0.4 0.4
Mexico 18,557 19,664 (5.6) (6.0)
----------- ----------- --------- ---------
Total Americas 988,669 1,016,465 (2.7) (3.7)
EMEA
United Kingdom 114,113 110,608 3.2 (3.5)
France 87,084 72,703 19.8 6.7
Switzerland 50,199 45,960 9.2 1.3
Italy 31,893 30,744 3.7 (7.6)
Norway 21,527 15,631 37.7 16.5
Russia 19,652 14,384 36.6 23.0
Germany 20,091 12,504 60.7 43.3
Other 42,402 34,178 24.1 10.4
----------- ----------- --------- ---------
Total EMEA 386,961 336,712 14.9 4.2
APAC
Australia 39,779 30,350 31.1 13.4
Singapore 18,373 12,593 45.9 36.2
Other 41,977 25,256 66.2 52.0
----------- ----------- --------- ---------
Total APAC 100,129 68,199 46.8 31.9
Total Kelly Services, Inc. $ 1,475,759 $ 1,421,376 3.8% (0.1)%
=========== =========== ========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
December Year to Date
---------------------------------------------
% Change
Constant
2007 2006 US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 3,454,922 $ 3,603,284 (4.1)% (4.1)%
Canada 260,050 272,727 (4.6) (10.0)
Puerto Rico 76,772 76,939 (0.2) (0.2)
Mexico 73,406 71,458 2.7 2.9
----------- ----------- --------- ---------
Total Americas 3,865,150 4,024,408 (4.0) (4.3)
EMEA
United Kingdom 469,903 441,847 6.3 (2.2)
France 315,008 274,694 14.7 5.1
Switzerland 180,951 160,555 12.7 7.9
Italy 124,674 118,501 5.2 (3.5)
Norway 78,050 56,463 38.2 25.9
Russia 68,528 51,958 31.9 23.1
Germany 65,593 41,890 56.6 43.4
Other 153,209 120,012 27.7 16.8
----------- ----------- --------- ---------
Total EMEA 1,455,916 1,265,920 15.0 6.2
APAC
Australia 135,886 117,694 15.5 3.5
Singapore 62,447 50,527 23.6 17.2
Other 148,190 88,229 68.0 56.2
----------- ----------- --------- ---------
Total APAC 346,523 256,450 35.1 24.3
Total Kelly Services, Inc. $ 5,667,589 $ 5,546,778 2.2% (0.6)%
=========== =========== ========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
Fourth Quarter
------------------------------------------
2007 2006
-------------------- --------------------
Amount Per Share Amount Per Share
--------- ---------- ---------- ---------
Earnings from continuing
operations $ 18,473 $ 0.52 $ 20,328 $ 0.56
Restructuring charges,
net of taxes (Notes 1 & 2) 802 0.02 - -
--------- ---------- ---------- ---------
Earnings from continuing
operations excluding
restructuring charges,
net of taxes $ 19,275 $ 0.54 $ 20,328 $ 0.56
========= ========== ========== =========
Fourth Quarter
------------------------------------------
2007 2006 % Change
--------- ---------- ---------
Selling, general and
administrative expenses $ 238,895 $ 217,191
Restructuring charges
(Notes 1 & 2) (1,343) -
--------- ----------
Selling, general and
administrative expenses
excluding restructuring
charges $ 237,552 $ 217,191 9.4%
========= ========== =========
Earnings from operations $ 26,541 $ 22,301
Restructuring charges
(Notes 1 & 2) 1,343 -
--------- ----------
Earnings from operations
excluding restructuring
charges $ 27,884 $ 22,301 25.0%
========= ========== =========
Americas Commercial selling,
general and administrative
expenses $ 87,179 $ 87,847
Americas restructuring
charge (Note 1) (1,442) -
--------- ----------
Americas Commercial selling,
general and administrative
expenses excluding the
Americas restructuring
charge $ 85,737 $ 87,847 (2.4%)
========= ========== =========
Americas Commercial Earnings
from operations $ 25,003 $ 29,614
Americas restructuring
charge (Note 1) 1,442 -
--------- ----------
Americas Commercial earnings
excluding the Americas
restructuring charge $ 26,445 $ 29,614 (10.7%)
========= ========== =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (continued)
(UNAUDITED)
(In thousands of dollars except per share data)
Fourth Quarter
--------------------------------------
2007 2006 % Change
-------- --------- --------
Americas Earnings from operations $ 42,419 $ 44,699
Americas restructuring charge
(Note 1) 1,442 -
-------- ---------
Americas earnings excluding
the Americas restructuring
charge $ 43,861 $ 44,699 (1.9%)
======== ========= ========
International Commercial selling,
general and administrative
expenses $ 73,622 $ 61,875
UK restructuring charge
(Note 2) 99 -
-------- ---------
International Commercial selling,
general and administrative
expenses excluding the UK
restructuring charge $ 73,721 $ 61,875 19.1%
======== ========= ========
International Commercial Earnings
from operations $ 5,658 $ 255
UK restructuring charge
(Note 2) (99) -
-------- ---------
International Commercial earnings
excluding the UK restructuring
charge $ 5,559 $ 255 NM
======== ========= ========
International Earnings from
operations $ 6,633 $ 506
UK restructuring charge
(Note 2) (99) -
-------- ---------
International earnings excluding
the UK restructuring charge $ 6,534 $ 506 NM
======== ========= ========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (continued)
(UNAUDITED)
(In thousands of dollars except per share data)
First Quarter
-----------------------------------
2007 2006
----------------- -----------------
Per Per
Amount Share Amount Share
-------- -------- -------- --------
Earnings from continuing operations $ 5,258 $ 0.14 $ 8,172 $ 0.23
Restructuring charges,
net of taxes (Note 2) 2,634 0.07 - -
-------- -------- -------- --------
Earnings from continuing operations
excluding restructuring charges,
net of taxes $ 7,892 $ 0.21 $ 8,172 $ 0.23
======== ======== ======== ========
Second Quarter
-----------------------------------
2007 2006
----------------- -----------------
Per Per
Amount Share Amount Share
-------- -------- -------- --------
Earnings from continuing operations $ 15,311 $ 0.41 $ 11,850 $ 0.33
Restructuring charges,
net of taxes (Note 2) 2,448 0.07 - -
-------- -------- -------- --------
Earnings from continuing operations
excluding restructuring charges,
net of taxes $ 17,759 $ 0.48 $ 11,850 $ 0.33
======== ======== ======== ========
Third Quarter
-----------------------------------
2007 2006
----------------- -----------------
Per Per
Amount Share Amount Share
-------- -------- -------- --------
Earnings from continuing operations $ 14,682 $ 0.40 $ 16,435 $ 0.45
Restructuring charges,
net of taxes (Notes 1 & 2) 1,882 0.05 - -
-------- -------- -------- --------
Earnings from continuing operations
excluding restructuring charges,
net of taxes $ 16,564 $ 0.45 $ 16,435 $ 0.45
======== ======== ======== ========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
December Year to Date
------------------------------------------
2007 2006
-------------------- --------------------
Amount Per Share Amount Per Share
--------- ---------- ---------- ---------
Earnings from continuing
operations $ 53,724 $ 1.47 $ 56,785 $ 1.56
Restructuring charges,
net of taxes (Notes 1 & 2) 7,766 0.21 - -
--------- ---------- ---------- ---------
Earnings from continuing
operations excluding
restructuring charges,
net of taxes $ 61,490 $ 1.68 $ 56,785 $ 1.56
========= ========== ========== =========
December Year to Date
------------------------------------------
2007 2006 % Change
--------- ---------- ---------
Selling, general and
administrative expenses $ 909,009 $ 828,685
Restructuring charges
(Notes 1 & 2) (8,889) -
--------- ----------
Selling, general and
administrative expenses
excluding restructuring
charges $ 900,120 $ 828,685 8.6%
========= ========== =========
Earnings from operations $ 80,080 $ 78,041
Restructuring charges
(Notes 1 & 2) 8,889 -
--------- ----------
Earnings from operations
excluding restructuring
charges $ 88,969 $ 78,041 14.0%
========= ========== =========
Americas Commercial selling,
general and administrative
expenses $ 349,709 $ 344,883
Americas restructuring
charge (Note 1) (2,953) -
--------- ----------
Americas Commercial selling,
general and administrative
expenses excluding the
Americas restructuring charge $ 346,756 $ 344,883 0.5%
========= ========== =========
Americas Commercial Earnings
from operations $ 88,054 $ 102,935
Americas restructuring
charge (Note 1) 2,953 -
--------- ----------
Americas Commercial Earnings
excluding the Americas
restructuring charge $ 91,007 $ 102,935 (11.6%)
========= ========== =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (continued)
(UNAUDITED)
(In thousands of dollars except per share data)
December Year to Date
------------------------------------------
2007 2006 % Change
--------- ---------- ---------
Americas Earnings from
operations $ 147,215 $ 161,025
Americas restructuring
charge (Note 1) 2,953 -
--------- ----------
Americas Earnings excluding
the Americas restructuring
charge $ 150,168 $ 161,025 (6.7%)
========= ========== =========
International Commercial
selling, general and
administrative expenses $ 272,733 $ 233,080
UK restructuring charge
(Note 2) (5,936) -
--------- ----------
International Commercial
selling, general and
administrative expenses
excluding the UK
restructuring charge $ 266,797 $ 233,080 14.5%
========= ========== =========
International Commercial
Earnings from operations $ 10,064 $ 567
UK restructuring charge
(Note 2) 5,936 -
--------- ----------
International Commercial
Earnings excluding the UK
restructuring charge $ 16,000 $ 567 NM
========= ========== =========
International Earnings from
operations $ 12,781 $ 1,208
UK restructuring charge
(Note 2) 5,936 -
--------- ----------
International Earnings
excluding the UK
restructuring charge $ 18,717 $ 1,208 NM
========= ========== =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
Management believes that the non-GAAP (Generally Accepted Accounting
Principles) information excluding the restructuring charges is useful to
understand the Company's fiscal 2007 financial performance and increases
comparability with prior year results. Specifically, Management believes
that excluding this item allows for a more meaningful comparison of current
period operating performance with the operating results of prior periods.
These non-GAAP measures may have limitations as analytical tools because
they exclude items which can have a material impact on cash flow and
earnings per share. As a result, Management considers these measures,
along with reported results, when it reviews and evaluates the Company's
financial performance. Management believes that these measures provide
greater transparency to investors and provide insight into how Management
is evaluating the Company's financial performance. Non-GAAP measures
should not be considered a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP.
(1) The Americas restructuring charge is comprised of facility exit costs
associated with the closure of 58 branch locations and the accelerated
depreciation of the leasehold improvements and personal property at the
impacted locations.
(2) The UK restructuring charge is comprised of facility exit costs
associated with the closure of 22 branch locations and the accelerated
depreciation of the leasehold improvements and personal property at the
impacted locations.
Contact Information: ANALYST CONTACT: James Polehna (248) 244-4586 MEDIA CONTACT: Renee Walker (248) 244-4305