U.S. 1 800 553-0327 International 1 651 291-5254The 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 forward looking statements contained herein. A reconciliation of certain non-GAAP financial measures discussed in this release is included in the attached financial information schedules. About Kelly Services Kelly Services, Inc. (
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars except per share data)
2009 2008 Change % Change
--------- --------- --------- --------
Revenue from services $ 1,028.9 $ 1,452.0 $ (423.1) (29.1)%
Cost of services 857.2 1,194.6 (337.4) (28.2)
--------- --------- --------- --------
Gross profit 171.7 257.4 (85.7) (33.3)
Selling, general and
administrative expenses 193.6 242.4 (48.8) (20.2)
Asset impairments 52.6 - 52.6 NM
--------- --------- --------- --------
(Loss) earnings from
operations (74.5) 15.0 (89.5) NM
Other (expense) income, net (1.0) 0.1 (1.1) NM
--------- --------- --------- --------
(Loss) earnings from
continuing operations
before taxes (75.5) 15.1 (90.6) NM
Income taxes (9.5) 4.7 (14.2) (302.4)
--------- --------- --------- --------
(Loss) earnings from
continuing operations (66.0) 10.4 (76.4) NM
Earnings from discontinued
operations, net of tax - 0.1 (0.1) (100.0)
--------- --------- --------- --------
Net (loss) earnings $ (66.0) $ 10.5 $ (76.5) NM%
========= ========= ========= ========
Basic (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (1.89) $ 0.30 $ (2.19) NM%
Earnings from discontinued
operations - - - NM
Net (loss) earnings (1.89) 0.30 (2.19) NM
Diluted (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (1.89) $ 0.30 $ (2.19) NM%
Earnings from discontinued
operations - - - NM
Net (loss) earnings (1.89) 0.30 (2.19) NM
--------- --------- --------- --------
STATISTICS:
Gross profit rate 16.7% 17.7% (1.0) pts.
Selling, general and
administrative expenses:
% of revenue 18.8 16.7 2.1
% of gross profit 112.7 94.2 18.5
% Return - (Loss) earnings
from operations (7.2) 1.0 (8.2)
(Loss) earnings from
continuing operations
before taxes (7.3) 1.0 (8.3)
(Loss) earnings from
continuing operations (6.4) 0.7 (7.1)
Net (loss) earnings (6.4) 0.7 (7.1)
Effective income tax rate 12.5% 30.9% (18.4) pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars except per share data)
2009 2008 Change % Change
--------- ---------- --------- --------
Revenue from services $ 2,071.5 $ 2,840.4 $ (768.9) (27.1)%
Cost of services 1,724.3 2,333.1 (608.8) (26.1)
--------- ---------- --------- --------
Gross profit 347.2 507.3 (160.1) (31.6)
Selling, general and
administrative expenses 399.7 479.4 (79.7) (16.6)
Asset impairments 52.6 - 52.6 NM
--------- ---------- --------- --------
(Loss) earnings from
operations (105.1) 27.9 (133.0) (476.6)
Other income, net 0.3 0.1 0.2 237.8
--------- ---------- --------- --------
(Loss) earnings from
continuing operations
before taxes (104.8) 28.0 (132.8) (474.1)
Income taxes (22.7) 9.6 (32.3) (337.0)
--------- ---------- --------- --------
(Loss) earnings from
continuing operations (82.1) 18.4 (100.5) NM
Earnings from discontinued
operations, net of tax 0.6 0.3 0.3 80.6
--------- ---------- --------- --------
Net (loss) earnings $ (81.5) $ 18.7 $ (100.2) NM%
========= ========== ========= ========
Basic (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (2.36) $ 0.52 $ (2.88) NM%
Earnings from
discontinued operations 0.02 0.01 0.01 100.0
Net (loss) earnings (2.34) 0.53 (2.87) NM
Diluted (loss) earnings
per share on common stock
(Loss) earnings from
continuing operations $ (2.36) $ 0.52 $ (2.88) NM%
Earnings from
discontinued operations 0.02 0.01 0.01 100.0
Net (loss) earnings (2.34) 0.53 (2.87) NM
--------- ---------- --------- --------
STATISTICS:
Gross profit rate 16.8% 17.9 (1.1) pts.
Selling, general and
administrative expenses:
% of revenue 19.3 16.9 2.4
% of gross profit 115.1 94.5 20.6
% Return - (Loss)
earnings from operations (5.1) 1.0 (6.1)
(Loss) earnings from
continuing operations
before taxes (5.1) 1.0 (6.1)
(Loss) earnings from
continuing operations (4.0) 0.6 (4.6)
Net (loss) earnings (3.9) 0.7 (4.6)
Effective income tax rate 21.7% 34.2% (12.5) pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Second Quarter
-------------------------------------------------
Constant
Currency
2009 2008 Change Change
----------- ----------- ---------- ----------
Americas Commercial
Revenue from services
(including fee-based
income) $ 473.0 $ 656.8 (28.0)% (26.4)%
Fee-based income 1.6 4.4 (65.1) (63.7)
Gross profit 70.6 102.5 (31.1) (29.8)
SG&A expenses 68.6 82.8 (17.2) (15.6)
Earnings from
operations 2.0 19.7 (89.8)
Gross profit rate 14.9% 15.6% (0.7) pts.
Expense rates:
% of revenue 14.5 12.6 1.9
% of gross profit 97.1 80.8 16.3
Operating margin 0.4 3.0 (2.6)
Americas PT
Revenue from services
(including fee-based
income) $ 194.8 $ 245.5 (20.7)% (20.5)%
Fee-based income 2.3 5.4 (57.7) (57.6)
Gross profit 32.2 42.8 (24.7) (24.5)
SG&A expenses 25.6 28.4 (10.1) (9.7)
Earnings from
operations 6.6 14.4 (53.6)
Gross profit rate 16.5% 17.4% (0.9) pts.
Expense rates:
% of revenue 13.1 11.6 1.5
% of gross profit 79.2 66.3 12.9
Operating margin 3.4 5.9 (2.5)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 211.7 $ 351.7 (39.8)% (28.4)%
Fee-based income 3.9 11.1 (65.2) (58.0)
Gross profit 34.4 61.1 (43.8) (33.4)
SG&A expenses 39.7 59.8 (33.6) (21.5)
Earnings from
operations (5.3) 1.3 NM
Earnings from
operations
(excluding
restructuring
charges) (2.9) 1.3 (320.1)
Gross profit rate 16.2% 17.4% (1.2) pts.
Expense rates:
% of revenue 18.8 17.0 1.8
% of gross profit 115.6 97.8 17.8
Operating margin (2.5) 0.4 (2.9)
EMEA PT
Revenue from services
(including fee-based
income) $ 33.1 $ 46.3 (28.6)% (15.6)%
Fee-based income 3.8 7.7 (50.8) (40.5)
Gross profit 8.8 14.1 (37.5) (25.8)
SG&A expenses 10.1 12.7 (20.3) (5.0)
Earnings from
operations (1.3) 1.4 (196.6)
Gross profit rate 26.6% 30.4% (3.8) pts.
Expense rates:
% of revenue 30.6 27.4 3.2
% of gross profit 115.1 90.3 24.8
Operating margin (4.0) 3.0 (7.0)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Second Quarter
-------------------------------------------------
Constant
Currency
2009 2008 Change Change
----------- ----------- ---------- ----------
APAC Commercial
Revenue from services
(including fee-based
income) $ 66.3 $ 90.9 (27.1)% (16.4)%
Fee-based income 2.3 5.2 (55.5) (50.5)
Gross profit 9.7 15.7 (38.6) (29.8)
SG&A expenses 10.9 15.2 (28.7) (18.9)
Earnings from
operations (1.2) 0.5 (331.9)
Gross profit rate 14.6% 17.3% (2.7) pts.
Expense rates:
% of revenue 16.4 16.8 (0.4)
% of gross profit 112.3 96.7 15.6
Operating margin (1.8) 0.6 (2.4)
APAC PT
Revenue from services
(including fee-based
income) $ 5.5 $ 9.4 (41.4)% (33.9)%
Fee-based income 0.8 1.4 (39.9) (31.3)
Gross profit 1.7 2.9 (39.2) (31.4)
SG&A expenses 2.1 3.0 (29.2) (18.5)
Earnings from
operations (0.4) (0.1) (160.3)
Gross profit rate 31.5% 30.3% 1.2 pts.
Expense rates:
% of revenue 38.6 31.9 6.7
% of gross profit 122.6 105.3 17.3
Operating margin (7.1) (1.6) (5.5)
OCG
Revenue from services
(including fee-based
income) $ 50.1 $ 57.2 (12.3)% (10.3)%
Fee-based income 6.0 7.1 (16.3) (10.8)
Gross profit 14.6 18.5 (21.3) (18.0)
SG&A expenses 17.8 17.9 (1.0) 3.7
Earnings from
operations (3.2) 0.6 NM
Gross profit rate 29.0% 32.3% (3.3) pts.
Expense rates:
% of revenue 35.5 31.4 4.1
% of gross profit 122.1 97.1 25.0
Operating margin (6.4) 0.9 (7.3)
Corporate Expense $ (19.1) $ (22.8) 16.4%
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
June Year to Date
-------------------------------------------------
Constant
Currency
2009 2008 Change Change
----------- ----------- ---------- ----------
Americas Commercial
Revenue from services
(including fee-based
income) $ 955.4 $ 1,299.5 (26.5)% (24.6)%
Fee-based income 3.4 8.6 (61.2) (58.4)
Gross profit 143.7 207.4 (30.7) (29.1)
SG&A expenses 141.2 165.5 (14.7) (12.7)
Earnings from
operations 2.5 41.9 (94.0)
Gross profit rate 15.0% 16.0% (1.0) pts.
Expense rates:
% of revenue 14.8 12.7 2.1
% of gross profit 98.3 79.8 18.5
Operating margin 0.3 3.2 (2.9)
Americas PT
Revenue from services
(including fee-based
income) $ 392.2 $ 484.1 (19.0)% (18.8)%
Fee-based income 5.1 10.7 (52.8) (52.7)
Gross profit 63.7 85.1 (25.2) (24.9)
SG&A expenses 51.8 56.6 (8.6) (8.2)
Earnings from
operations 11.9 28.5 (58.1)
Gross profit rate 16.2% 17.6% (1.4) pts.
Expense rates:
% of revenue 13.2 11.7 1.5
% of gross profit 81.2 66.5 14.7
Operating margin 3.0 5.9 (2.9)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 428.3 $ 673.6 (36.4)% (23.4)%
Fee-based income 8.6 21.8 (60.3) (51.6)
Gross profit 68.9 116.7 (41.0) (29.5)
SG&A expenses 86.3 117.0 (26.2) (10.7)
Earnings from
operations (17.4) (0.3) NM
Earnings from
operations
(excluding
restructuring
charges) (9.6) (0.3) NM
Gross profit rate 16.1% 17.3% (1.2) pts.
Expense rates:
% of revenue 20.2 17.4 2.8
% of gross profit 125.3 100.2 25.1
Operating margin (4.1) 0.0 (4.1)
EMEA PT
Revenue from services
(including fee-based
income) $ 65.9 $ 90.1 (26.9)% (12.7)%
Fee-based income 8.2 14.6 (44.1) (31.4)
Gross profit 18.2 27.1 (32.9) (19.5)
SG&A expenses 20.1 24.7 (18.7) (2.2)
Earnings from
operations (1.9) 2.4 (179.0)
Gross profit rate 27.6% 30.1% (2.5) pts.
Expense rates:
% of revenue 30.5 27.4 3.1
% of gross profit 110.4 91.2 19.2
Operating margin (2.9) 2.7 (5.6)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
June Year to Date
-------------------------------------------------
Constant
Currency
2009 2008 Change Change
----------- ----------- ---------- ----------
APAC Commercial
Revenue from services
(including fee-based
income) $ 130.7 $ 177.6 (26.4)% (14.1)%
Fee-based income 4.5 9.5 (52.2) (46.0)
Gross profit 19.2 30.2 (36.8) (26.2)
SG&A expenses 21.7 29.7 (27.0) (15.6)
Earnings from
operations (2.5) 0.5 NM
Gross profit rate 14.6% 17.0% (2.4) pts.
Expense rates:
% of revenue 16.6 16.7 (0.1)
% of gross profit 113.3 98.1 15.2
Operating margin (1.9) 0.3 (2.2)
APAC PT
Revenue from services
(including fee-based
income) $ 11.7 $ 17.9 (34.5)% (25.7)%
Fee-based income 1.8 2.8 (35.7) (26.5)
Gross profit 3.6 5.5 (33.2) (24.3)
SG&A expenses 4.3 5.8 (26.4) (14.1)
Earnings from
operations (0.7) (0.3) (77.0)
Gross profit rate 31.1% 30.5% 0.6 pts.
Expense rates:
% of revenue 36.6 32.5 4.1
% of gross profit 117.5 106.6 10.9
Operating margin (5.4) (2.0) (3.4)
OCG
Revenue from services
(including fee-based
income) $ 98.8 $ 109.0 (9.3)% (6.9)%
Fee-based income 12.6 13.2 (4.9) 1.8
Gross profit 30.5 35.7 (14.5) (10.6)
SG&A expenses 34.9 33.2 4.9 10.3
Earnings from
operations (4.4) 2.5 (285.1)
Gross profit rate 30.8% 32.7% (1.9) pts.
Expense rates:
% of revenue 35.3 30.5 4.8
% of gross profit 114.5 93.3 21.2
Operating margin (4.5) 2.2 (6.7)
Corporate Expense $ (40.0) $ (47.3) 15.4%
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
June 28, December 28, June 29,
2009 2008 2008
--------- --------- ---------
Current Assets
Cash and equivalents $ 115.2 $ 118.3 $ 85.4
Trade accounts receivable, less
allowances of $15.4, $17.0 and
$17.0, respectively 681.0 815.8 952.5
Prepaid expenses and other current
assets 57.2 62.0 55.9
Deferred taxes 29.7 31.9 28.2
--------- --------- ---------
Total current assets 883.1 1,028.0 1,122.0
Property and Equipment, Net 137.7 151.3 172.5
Noncurrent Deferred Taxes 40.2 40.0 48.0
Goodwill, Net 67.3 117.8 145.2
Other Assets 125.3 120.2 141.8
--------- --------- ---------
Total Assets $ 1,253.6 $ 1,457.3 $ 1,629.5
========= ========= =========
Current Liabilities
Short-term borrowings $ - $ 35.2 $ 44.9
Accounts payable and accrued liabilities 205.2 244.1 209.9
Accrued payroll and related taxes 217.4 243.2 290.8
Accrued insurance 25.2 26.3 23.0
Income and other taxes 18.1 51.8 65.1
Current portion of long-term debt 77.6 - -
--------- --------- ---------
Total current liabilities 543.5 600.6 633.7
Noncurrent Liabilities
Long-term debt - 80.0 51.4
Accrued insurance 44.6 46.9 58.8
Accrued retirement benefits 66.4 61.6 76.2
Other long-term liabilities 14.9 15.3 15.4
--------- --------- ---------
Total noncurrent liabilities 125.9 203.8 201.8
Stockholders' Equity
Common stock 40.1 40.1 40.1
Treasury stock (107.8) (111.2) (111.4)
Paid-in capital 34.7 35.8 33.3
Earnings invested in the business 594.5 676.0 786.6
Accumulated other comprehensive income 22.7 12.2 45.4
--------- --------- ---------
Total stockholders' equity 584.2 652.9 794.0
--------- --------- ---------
Total Liabilities and Stockholders' Equity $ 1,253.6 $ 1,457.3 $ 1,629.5
========= ========= =========
--------- --------- ---------
STATISTICS:
Working Capital $ 339.6 $ 427.4 $ 488.3
Current Ratio 1.6 1.7 1.8
Debt-to-capital % 11.7 15.0 10.8%
Global Days Sales Outstanding 51 50 51
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars)
2009 2008
--------- ---------
Cash flows from operating activities
Net (loss) earnings $ (81.5) $ 18.7
Noncash adjustments:
Impairment of assets 52.6 -
Depreciation and amortization 21.0 22.5
Provision for bad debts 1.3 2.0
Stock-based compensation 2.2 1.6
Other, net (1.5) 1.8
Changes in operating assets and liabilities 75.8 (5.3)
--------- ---------
Net cash from operating activities 69.9 41.3
--------- ---------
Cash flows from investing activities
Capital expenditures (5.0) (15.6)
Acquisition of companies, net of cash received (7.5) (10.6)
Other investing activities (3.0) (0.4)
--------- ---------
Net cash from investing activities (15.5) (26.6)
--------- ---------
Cash flows from financing activities
Net change in revolving line of credit (13.1) (7.4)
Repayment of debt (22.9) -
Dividend payments - (9.5)
Purchase of treasury stock - (8.0)
Stock options and other stock sales - 0.1
Other financing activities (23.6) (0.7)
--------- ---------
Net cash from financing activities (59.6) (25.5)
--------- ---------
Effect of exchange rates on cash and equivalents 2.1 3.4
--------- ---------
Net change in cash and equivalents (3.1) (7.4)
Cash and equivalents at beginning of period 118.3 92.8
--------- ---------
Cash and equivalents at end of period $ 115.2 $ 85.4
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Second Quarter (Commercial, PT and OCG)
-----------------------------------------
% Change
Constant
2009 2008 US$ Currency
---------- ---------- -------- --------
Americas
United States $ 633.3 $ 839.1 (24.5)% (24.5)%
Canada 42.6 63.7 (33.1) (22.6)
Mexico 16.1 19.6 (18.0) 4.9
Puerto Rico 14.6 20.6 (29.2) (29.2)
---------- ----------
Total Americas 706.6 943.0 (25.1) (23.9)
EMEA
France 62.9 95.4 (34.0) (24.2)
United Kingdom 50.2 109.9 (54.3) (41.6)
Switzerland 32.5 52.3 (37.8) (33.0)
Italy 17.6 37.4 (52.9) (46.1)
Germany 15.5 22.8 (32.2) (22.2)
Norway 15.1 24.3 (37.8) (20.7)
Russia 15.1 22.5 (32.9) (8.8)
Portugal 12.6 - NM NM
Other 27.1 40.9 (33.9) (22.1)
---------- ----------
Total EMEA 248.6 405.5 (38.7) (27.1)
APAC
Australia 22.5 38.1 (40.8) (26.3)
Singapore 15.2 18.7 (18.9) (12.6)
Malaysia 12.0 14.7 (18.6) (10.1)
Other 24.0 32.0 (24.8) (16.0)
---------- ----------
Total APAC 73.7 103.5 (28.7) (18.3)
Total Kelly Services, Inc. $ 1,028.9 $ 1,452.0 (29.1)% (24.4)%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
June Year to Date (Commercial, PT and OCG)
-----------------------------------------
% Change
Constant
2009 2008 US$ Currency
---------- ---------- -------- --------
Americas
United States $ 1,278.1 $ 1,659.8 (23.0)% (23.0)%
Canada 83.5 125.5 (33.5) (20.4)
Mexico 30.8 37.3 (17.4) 7.7
Puerto Rico 30.3 39.4 (23.3) (23.3)
---------- ----------
Total Americas 1,422.7 1,862.0 (23.6) (22.2)
EMEA
France 124.6 182.0 (31.5) (21.6)
United Kingdom 112.8 214.8 (47.5) (30.1)
Switzerland 61.0 94.5 (35.4) (30.6)
Italy 36.5 72.8 (49.8) (42.5)
Germany 30.9 44.2 (30.1) (19.8)
Russia 29.0 43.2 (32.9) (7.6)
Norway 28.2 44.3 (36.3) (18.3)
Portugal 24.3 - NM NM
Other 55.3 81.3 (32.1) (20.1)
---------- ----------
Total EMEA 502.6 777.1 (35.3) (22.2)
APAC
Australia 42.9 73.8 (41.8) (24.4)
Singapore 30.1 36.5 (17.6) (11.4)
Malaysia 24.1 29.5 (18.3) (9.0)
Other 49.1 61.5 (20.1) (9.7)
---------- ----------
Total APAC 146.2 201.3 (27.3) (15.3)
Total Kelly Services, Inc. $ 2,071.5 $ 2,840.4 (27.1)% (21.7)%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
Second Quarter
------------------------------------
2009 2008
----------------- -----------------
Per Per
Amount Share Amount Share
-------- ------- -------- --------
(Loss) earnings from continuing
operations $ (66.0) $ (1.89) $ 10.4 $ 0.30
U.K. restructuring charge, net of
taxes (Note 1) 2.4 0.07 - -
Asset impairments, net of taxes
(Note 2) 49.2 1.41 -
-------- --------
(Loss) earnings from continuing
operations excluding restructuring
and asset impairment charges, net of
taxes $ (14.4) $ (0.41) $ 10.4 $ 0.30
======== ========
Second Quarter
------------------------------------
2009 2008 % Change
-------- -------- --------
Selling, general and administrative
expenses $ 193.6 $ 242.4
U.K. restructuring charge
(Note 1) (2.4) -
-------- --------
Selling, general and administrative
expenses excluding the U.K.
restructuring charge $ 191.2 $ 242.4 (21.2%)
======== ======== ========
(Loss) earnings from operations $ (74.5) $ 15.0
U.K. restructuring charge
(Note 1) 2.4 -
Asset impairments (Note 2) 52.6 -
-------- --------
(Loss) earnings from operations
excluding restructuring and asset
impairment charges $ (19.5) $ 15.0 (229.9%)
======== ======== ========
EMEA Commercial selling, general
and administrative expenses $ 39.7 $ 59.8
U.K. restructuring charge
(Note 1) (2.4) -
-------- --------
EMEA Commercial selling, general
and administrative expenses
excluding the U.K. restructuring
charge $ 37.3 $ 59.8 (37.6%)
======== ======== ========
EMEA Commercial (loss) earnings
from operations $ (5.3) $ 1.3
U.K. restructuring charge
(Note 1) 2.4 -
-------- --------
EMEA Commercial (loss) earnings from
operations excluding the U.K.
restructuring charge $ (2.9) $ 1.3 (320.1%)
======== ======== ========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
June Year to Date
-----------------------------------------
2009 2008
-------------------- -------------------
Per Per
Amount Share Amount Share
---------- -------- -------- ---------
(Loss) earnings from continuing
operations $ (82.1) $ (2.36) $ 18.4 $ 0.52
U.K. restructuring charge,
net of taxes (Note 1) 7.8 0.22 - -
Asset impairments, net of
taxes (Note 2) 49.2 1.41 - -
---------- --------
(Loss) earnings from continuing
operations excluding
restructuring and asset
impairment charges, net of tax $ (25.1) $ (0.72) $ 18.4 $ 0.52
========== ========
June Year to Date
----------------------------------------
2009 2008 % Change
---------- -------- --------
Selling, general and
administrative expenses $ 399.7 $ 479.4
U.K. restructuring charge
(Note 1) (7.8) -
---------- --------
Selling, general and
administrative expenses
excluding the U.K.
restructuring charge $ 391.9 $ 479.4 (18.3%)
========== ======== =========
(Loss) earnings from operations $ (105.1) $ 27.9
U.K. restructuring charge
(Note 1) 7.8 -
Asset impairments (Note 2) 52.6 -
---------- --------
(Loss) earnings from operations
excluding restructuring and
asset impairment charges $ (44.7) $ 27.9 (260.2%)
========== ======== =========
EMEA Commercial selling, general
and administrative expenses $ 86.3 $ 117.0
U.K. restructuring charge
(Note 1) (7.8) -
---------- --------
EMEA Commercial selling, general
and administrative expenses
excluding the U.K.
restructuring charge $ 78.5 $ 117.0 (32.9%)
========== ======== =========
EMEA Commercial (loss) earnings
from operations $ (17.4) $ (0.3)
U.K. restructuring charge
(Note 1) 7.8 -
---------- --------
EMEA Commercial (loss) earnings
from operations excluding the
U.K. restructuring charge $ (9.6) $ (0.3) NM
========== ======== =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting
Principles) information excluding the U.K. restructuring and asset
impairment charges are useful to understand the Company's fiscal 2009
financial performance and increases comparability. 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 U.K. restructuring charge is comprised of facility and other exit
costs associated with the disposal or closure of 41 branch locations
related to the restructuring program.
(2) The impairment charges include adjustments to the value of goodwill for
the Company's Americas Commercial, APAC Commercial and EMEA PT segments, as
well as long-lived assets and intangibles related to operations in Japan.
Contact Information: ANALYST CONTACT: James Polehna (248) 244-4586 james_polehna@kellyservices.com MEDIA CONTACT: Judith Clark (248) 244-5362 judith_clark@kellyservices.com