SOURCE: Kelly Services, Inc.

Kelly Services, Inc.

August 10, 2011 07:30 ET

Kelly Services® Reports 2nd Quarter 2011 Results and Announces Dividend

TROY, MI--(Marketwire - Aug 10, 2011) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2011 totaled $1.4 billion, a 16% increase compared to the corresponding quarter in 2010.

Earnings from operations for the second quarter of 2011 totaled $21 million, compared to earnings from operations of $8 million reported for the second quarter of 2010.

Diluted earnings per share from continuing operations in the second quarter of 2011 were $0.53 compared to second quarter 2010 earnings of $0.11 per share.

Commenting on the second quarter results, Camden said, "We are pleased that Kelly® completed a very strong second quarter, despite the slow moving recovery. Solid revenue growth coupled with our ability to effectively leverage a leaner cost structure resulted in improved earnings." Camden added that Kelly will continue to focus on maximizing profits across all business lines by adhering to its disciplined operational management.

"A concentration on specialized outsourcing services is also expected to contribute to profits going forward," Camden said.

"Today's changing labor markets demand new approaches. We are creating custom workforce solutions for customers through our outsourcing and consulting services, and targeting other higher-margin staffing business such as Professional & Technical."

Kelly also reported that on August 9, its board of directors declared a dividend of $0.05 per share. The dividend is payable on September 12, 2011 to shareholders of record as of the close of business on August 31, 2011.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 10, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:

U.S. 1 800 288 9626
International 1 651 291 5254

The 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, but are not limited to, competitive market pressures including pricing, changing market and economic conditions, our ability to achieve our business strategy, including our ability to successfully expand into new markets and service lines, material changes in demand from or loss of large corporate customers, impairment charges initiated by adverse industry or market developments, unexpected termination of customer contracts, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits, unexpected changes in claim trends on workers' compensation and benefit plans, our ability to maintain specified financial covenants in our bank facilities, our ability to access credit markets and continued availability of financing for funding working capital, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to retain the services of our senior management, local management and field personnel, the impact of changes in laws and regulations (including federal, state and international tax laws), the net financial impact of recent U.S. healthcare legislation on our business, risks associated with conducting business in foreign countries, including foreign currency fluctuations, and other risks, uncertainties and 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, and we have no intention to update these statements.

About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a leader in providing workforce solutions. Kelly offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 530,000 employees annually. Revenue in 2010 was $5 billion. Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JULY 3, 2011 AND JULY 4, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2011 2010 Change % Change
Revenue from services $ 1,405.8 $ 1,209.4 $ 196.4 16.2 %
Cost of services 1,181.2 1,018.5 162.7 16.0
Gross profit 224.6 190.9 33.7 17.6
Selling, general and administrative expenses 203.3 180.9 22.4 12.4
Asset impairments - 1.5 (1.5 ) (100.0 )
Earnings from operations 21.3 8.5 12.8 151.8
Other expense, net (0.7 ) (2.1 ) 1.4 69.3
Earnings from continuing operations before taxes 20.6 6.4 14.2 222.3
Income taxes 0.6 2.5 (1.9 ) (73.2 )
Earnings from continuing operations 20.0 3.9 16.1 417.6
Loss from discontinued operations, net of tax (1.2 ) - (1.2 ) NM
Net earnings $ 18.8 $ 3.9 $ 14.9 387.0 %
Basic earnings (loss) per share on common stock
Earnings from continuing operations $ 0.53 $ 0.11 $ 0.42 381.8 %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 0.50 0.11 0.39 354.5
Diluted earnings (loss) per share on common stock
Earnings from continuing operations $ 0.53 $ 0.11 $ 0.42 381.8 %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 0.50 0.11 0.39 354.5
STATISTICS:
Gross profit rate 16.0 % 15.8 % 0.2 pts.
Selling, general and administrative expenses:
% of revenue 14.5 15.0 (0.5 )
% of gross profit 90.6 94.8 (4.2 )
% Return - Earnings from operations 1.5 0.7 0.8
Earnings from continuing operations before taxes 1.5 0.5 1.0
Earnings from continuing operations 1.4 0.3 1.1
Net earnings 1.3 0.3 1.0
Effective income tax rate 3.3 % 39.8 % (36.5 ) pts.
Average number of shares outstanding (millions):
Basic 36.8 36.0
Diluted 36.8 36.0
Shares adjusted for nonvested restricted awards (millions):
Basic 37.4 36.4
Diluted 37.4 36.4

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JULY 3, 2011 AND JULY 4, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2011 2010 Change % Change
Revenue from services $ 2,744.9 $ 2,339.8 $ 405.1 17.3 %
Cost of services 2,306.6 1,968.9 337.7 17.2
Gross profit 438.3 370.9 67.4 18.1
Selling, general and administrative expenses 415.4 362.5 52.9 14.6
Asset impairments - 1.5 (1.5 ) (100.0 )
Earnings from operations 22.9 6.9 16.0 232.6
Other expense, net (1.1 ) (3.2 ) 2.1 66.2
Earnings from continuing operations before taxes 21.8 3.7 18.1 484.4
Income taxes 0.7 1.8 (1.1 ) (60.0 )
Earnings from continuing operations 21.1 1.9 19.2 NM
Loss from discontinued operations, net of tax (1.2 ) - (1.2 ) NM
Net earnings $ 19.9 $ 1.9 $ 18.0 NM %
Basic earnings (loss) per share on common stock
Earnings from continuing operations $ 0.56 $ 0.05 $ 0.51 NM %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 0.53 0.05 0.48 NM
Diluted earnings (loss) per share on common stock
Earnings from continuing operations $ 0.56 $ 0.05 $ 0.51 NM %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 0.53 0.05 0.48 NM
STATISTICS:
Gross profit rate 16.0 % 15.9 % 0.1 pts.
Selling, general and administrative expenses:
% of revenue 15.1 15.5 (0.4 )
% of gross profit 94.8 97.7 (2.9 )
% Return - Earnings from operations 0.8 0.3 0.5
Earnings from continuing operations before taxes 0.8 0.2 0.6
Earnings from continuing operations 0.8 0.1 0.7
Net earnings 0.7 0.1 0.6
Effective income tax rate 3.4 % 49.3 % (45.9 ) pts.
Average number of shares outstanding (millions):
Basic 36.7 35.5
Diluted 36.7 35.5
Shares adjusted for nonvested restricted awards
(millions):
Basic 37.4 35.9
Diluted 37.4 36.0

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Second Quarter


2011


2010


Change
Constant
Currency
Change
Americas Commercial
Revenue from services (including fee-based income) $ 670.3 $ 600.9 11.6 % 10.7 %
Fee-based income 2.8 2.2 29.0 26.9
Gross profit 93.7 85.7 9.4 8.7
Total SG&A expenses 70.7 67.7 4.4 3.7
Earnings from operations 23.0 18.0 28.3
Gross profit rate 14.0 % 14.3 % (0.3 ) pts.
Expense rates:
% of revenue 10.5 11.3 (0.8 )
% of gross profit 75.4 79.0 (3.6 )
Operating margin 3.4 3.0 0.4
Americas PT
Revenue from services (including fee-based income) $ 247.7 $ 219.9 12.6 % 12.5 %
Fee-based income 3.7 2.2 66.8 66.5
Gross profit 36.0 34.5 4.4 4.2
Total SG&A expenses 25.6 22.7 12.7 12.6
Earnings from operations 10.4 11.8 (11.7 )
Gross profit rate 14.6 % 15.7 % (1.1 ) pts.
Expense rates:
% of revenue 10.3 10.3 -
% of gross profit 71.1 65.8 5.3
Operating margin 4.2 5.4 (1.2 )
EMEA Commercial
Revenue from services (including fee-based income) $ 258.8 $ 209.8 23.4 % 6.9 %
Fee-based income 6.6 5.1 29.1 12.2
Gross profit 42.3 33.8 25.0 7.9
SG&A expenses excluding restructuring charges 36.3 30.9 17.5
Restructuring charges (0.6 ) - NM
Total SG&A expenses 35.7 30.9 15.6 (0.3 )
Asset impairments - 1.5 (100.0 )
Earnings from operations 6.6 1.4 382.4
Earnings from operations excluding restructuring charges 6.0 1.4 339.1
Gross profit rate 16.3 % 16.1 % 0.2 pts.
Expense rates (excluding restructuring charges):
% of revenue 14.0 14.7 (0.7 )
% of gross profit 86.0 91.5 (5.5 )
Operating margin (excluding restructuring charges) 2.3 0.6 1.7

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Second Quarter


2011


2010


Change
Constant
Currency
Change
EMEA PT
Revenue from services (including fee-based income) $ 45.8 $ 34.4 33.1 % 15.8 %
Fee-based income 5.3 3.9 34.2 18.0
Gross profit 12.4 9.3 32.4 15.8
Total SG&A expenses 11.0 8.8 24.9 8.3
Earnings from operations 1.4 0.5 152.7
Gross profit rate 27.0 % 27.1 % (0.1 ) pts.
Expense rates:
% of revenue 24.0 25.5 (1.5 )
% of gross profit 88.8 94.1 (5.3 )
Operating margin 3.0 1.6 1.4
APAC Commercial
Revenue from services (including fee-based income) $ 102.3 $ 83.7 22.3 % 9.0 %
Fee-based income 3.7 2.7 36.9 21.8
Gross profit 14.3 11.7 22.1 7.9
Total SG&A expenses 13.9 10.7 29.4 13.8
Earnings from operations 0.4 1.0 (58.5 )
Gross profit rate 14.0 % 14.0 % - pts.
Expense rates:
% of revenue 13.6 12.8 0.8
% of gross profit 97.2 91.8 5.4
Operating margin 0.4 1.2 (0.8 )
APAC PT
Revenue from services (including fee-based income) $ 13.5 $ 7.8 73.0 % 56.1 %
Fee-based income 4.2 2.8 51.9 38.0
Gross profit 5.6 3.5 57.2 41.7
Total SG&A expenses 6.4 3.9 64.4 47.9
Earnings from operations (0.8 ) (0.4 ) (130.8 )
Gross profit rate 41.3 % 45.5 % (4.2 ) pts.
Expense rates:
% of revenue 47.9 50.4 (2.5 )
% of gross profit 115.9 110.8 5.1
Operating margin (6.6 ) (4.9 ) (1.7 )

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Second Quarter


2011


2010


Change
Constant
Currency
Change
OCG
Revenue from services (including fee-based income) $ 74.0 $ 60.4 22.5 % 20.7 %
Fee-based income 9.5 5.6 68.9 59.8
Gross profit 21.0 13.0 62.1 57.0
Total SG&A expenses 21.8 18.8 16.4 11.4
Earnings from operations (0.8 ) (5.8 ) 85.2
Gross profit rate 28.4 % 21.4 % 7.0 pts.
Expense rates:
% of revenue 29.5 31.1 (1.6 )
% of gross profit 104.1 144.9 (40.8 )
Operating margin (1.2 ) (9.6 ) 8.4
Corporate Expense
Total SG&A expenses $ 18.9 $ 18.0 4.6 %
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income) $ 1,405.8 $ 1,209.4 16.2 % 11.3 %
Fee-based income 35.7 24.4 46.2 34.5
Gross profit 224.6 190.9 17.6 11.9
SG&A expenses excluding restructuring charges 203.9 180.9 12.7
Restructuring charges (0.6 ) - NM
Total SG&A expenses 203.3 180.9 12.4 6.8
Asset impairments - 1.5 (100.0 )
Earnings from operations 21.3 8.5 151.8
Earnings from operations excluding restructuring charges 20.7 8.5 144.9
Gross profit rate 16.0 % 15.8 % 0.2 pts.
Expense rates (excluding restructuring charges):
% of revenue 14.5 15.0 (0.5 )
% of gross profit 90.8 94.8 (4.0 )
Operating margin (excluding restructuring charges) 1.5 0.7 0.8

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
June Year to Date


2011


2010


Change
Constant
Currency
Change
Americas Commercial
Revenue from services (including fee-based income) $ 1,323.6 $ 1,148.6 15.2 % 14.4 %
Fee-based income 5.6 4.3 31.5 29.7
Gross profit 186.2 164.2 13.4 12.7
SG&A expenses excluding restructuring charges 146.5 132.8 10.4
Restructuring charges - 0.3 (100.0 )
Total SG&A expenses 146.5 133.1 10.1 9.4
Earnings from operations 39.7 31.1 27.7
Earnings from operations excluding restructuring charges 39.7 31.4 26.2
Gross profit rate 14.1 % 14.3 % (0.2 ) pts.
Expense rates (excluding restructuring charges):
% of revenue 11.1 11.6 (0.5 )
% of gross profit 78.7 80.8 (2.1 )
Operating margin (excluding restructuring charges) 3.0 2.7 0.3
Americas PT
Revenue from services (including fee-based income) $ 488.3 $ 425.5 14.7 % 14.6 %
Fee-based income 6.5 4.5 43.8 43.5
Gross profit 72.1 66.0 9.2 9.1
Total SG&A expenses 53.2 45.7 16.3 16.2
Earnings from operations 18.9 20.3 (6.7 )
Gross profit rate 14.8 % 15.5 % (0.7) pts.
Expense rates:
% of revenue 10.9 10.8 0.1
% of gross profit 73.7 69.2 4.5
Operating margin 3.9 4.8 (0.9 )
EMEA Commercial
Revenue from services (including fee-based income) $ 490.3 $ 414.7 18.3 % 8.5 %
Fee-based income 12.4 9.9 24.4 14.1
Gross profit 79.6 66.6 19.5 9.3
SG&A expenses excluding restructuring charges 71.6 63.3 13.2
Restructuring charges 3.4 2.7 26.0
Total SG&A expenses 75.0 66.0 13.7 4.2
Asset impairments - 1.5 (100.0 )
Earnings from operations 4.6 (0.9 ) NM
Earnings from operations excluding restructuring charges 8.0 1.8 348.3
Gross profit rate 16.2 % 16.1 % 0.1 pts.
Expense rates (excluding restructuring charges):
% of revenue 14.6 15.3 (0.7 )
% of gross profit 90.0 95.0 (5.0 )
Operating margin (excluding restructuring charges) 1.6 0.4 1.2

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
June Year to Date


2011


2010


Change
Constant
Currency
Change
EMEA PT
Revenue from services (including fee-based income) $ 87.2 $ 69.3 25.8 % 16.1 %
Fee-based income 9.7 7.6 26.5 16.9
Gross profit 23.4 18.7 24.5 15.1
Total SG&A expenses 21.7 18.3 18.4 8.7
Earnings from operations 1.7 0.4 269.7
Gross profit rate 26.8 % 27.1 % (0.3 ) pts.
Expense rates:
% of revenue 24.9 26.4 (1.5 )
% of gross profit 92.8 97.6 (4.8 )
Operating margin 1.9 0.7 1.2
APAC Commercial
Revenue from services (including fee-based income) $ 202.0 $ 164.6 22.7 % 11.2 %
Fee-based income 7.2 5.5 31.6 19.1
Gross profit 27.8 23.1 20.4 8.4
SG&A expenses excluding restructuring charges 27.2 20.6 32.1
Restructuring charges - 0.5 (100.0 )
Total SG&A expenses 27.2 21.1 28.8 15.7
Earnings from operations 0.6 2.0 (70.7 )
Earnings from operations excluding restructuring charges 0.6 2.5 (77.1 )
Gross profit rate 13.8 % 14.0 % (0.2 ) pts.
Expense rates (excluding restructuring charges):
% of revenue 13.5 12.5 1.0
% of gross profit 98.0 89.3 8.7
Operating margin (excluding restructuring charges) 0.3 1.5 (1.2 )
APAC PT
Revenue from services (including fee-based income) $ 25.0 $ 15.4 61.9 % 48.5 %
Fee-based income 8.0 4.7 72.9 59.0
Gross profit 10.6 6.3 67.0 52.8
Total SG&A expenses 12.1 7.7 58.8 45.1
Earnings from operations (1.5 ) (1.4 ) (19.5 )
Gross profit rate 42.4 % 41.1 % 1.3 pts.
Expense rates:
% of revenue 48.8 49.7 (0.9 )
% of gross profit 115.0 121.0 (6.0 )
Operating margin (6.4 ) (8.6 ) 2.2

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
June Year to Date


2011


2010


Change
Constant
Currency
Change
OCG
Revenue from services (including fee-based income) $ 142.2 $ 115.7 22.9 % 21.7 %
Fee-based income 18.2 11.7 55.2 49.3
Gross profit 39.9 27.0 48.3 45.0
SG&A expenses excluding restructuring charges 43.1 37.2 15.9
Restructuring charges - 0.1 (100.0 )
Total SG&A expenses 43.1 37.3 15.7 12.2
Earnings from operations (3.2 ) (10.3 ) 68.9
Earnings from operations excluding restructuring charges (3.2 ) (10.2 ) 68.6
Gross profit rate 28.1 % 23.3 % 4.8 pts.
Expense rates (excluding restructuring charges):
% of revenue 30.3 32.2 (1.9 )
% of gross profit 108.1 138.3 (30.2 )
Operating margin (excluding restructuring charges) (2.3 ) (8.9 ) 6.6
Corporate Expense
SG&A expenses excluding restructuring charges $ 37.9 $ 33.5 12.7 %
Restructuring charges - 0.8 (100.0 )
Total SG&A expenses 37.9 34.3 10.2
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income) $ 2,744.9 $ 2,339.8 17.3 % 13.9 %
Fee-based income 67.5 48.1 40.3 32.2
Gross profit 438.3 370.9 18.1 14.3
SG&A expenses excluding restructuring charges 412.0 358.1 15.1
Restructuring charges 3.4 4.4 (23.6 )
Total SG&A expenses 415.4 362.5 14.6 10.7
Asset impairments - 1.5 (100.0 )
Earnings from operations 22.9 6.9 232.6
Earnings from operations excluding restructuring charges 26.3 11.3 132.4
Gross profit rate 16.0 % 15.9 % 0.1 pts.
Expense rates (excluding restructuring charges):
% of revenue 15.0 15.3 (0.3 )
% of gross profit 94.0 96.5 (2.5 )
Operating margin (excluding restructuring charges) 1.0 0.5 0.5

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
July 3, 2011 January 2, 2011 July 4, 2010
Current Assets
Cash and equivalents $ 80.5 $ 80.5 $ 65.3
Trade accounts receivable, less allowances of $13.6, $12.3 and $13.0, respectively 929.8
810.9

751.8
Prepaid expenses and other current assets 74.1 44.8 60.7
Deferred taxes 20.6 22.4 21.2
Total current assets 1,105.0 958.6 899.0
Property and Equipment, Net 96.2 104.0 112.1
Noncurrent Deferred Taxes 84.1 84.0 74.2
Goodwill, Net 67.3 67.3 67.3
Other Assets 156.4 154.5 138.7
Total Assets $ 1,509.0 $ 1,368.4 $ 1,291.3
Current Liabilities
Short-term borrowings and current portion of long-term debt $ 89.0 $ 78.8 $ 68.4
Accounts payable and accrued liabilities 222.9 181.6 144.8
Accrued payroll and related taxes 278.0 243.3 228.3
Accrued insurance 31.9 31.3 23.1
Income and other taxes 70.7 56.0 47.3
Total current liabilities 692.5 591.0 511.9
Noncurrent Liabilities
Long-term debt - - 49.9
Accrued insurance 54.6 53.6 55.0
Accrued retirement benefits 91.0 85.4 72.4
Other long-term liabilities 13.7 14.6 15.4
Total noncurrent liabilities 159.3 153.6 192.7
Stockholders' Equity
Common stock 40.1 40.1 40.1
Treasury stock (68.7 ) (70.9 ) (71.3 )
Paid-in capital 28.0 28.0 26.8
Earnings invested in the business 617.5 597.6 573.4
Accumulated other comprehensive income 40.3 29.0 17.7
Total stockholders' equity 657.2 623.8 586.7
Total Liabilities and Stockholders' Equity $ 1,509.0 $ 1,368.4 $ 1,291.3
STATISTICS:
Working Capital $ 412.5 $ 367.6 $ 387.1
Current Ratio 1.6 1.6 1.8
Debt-to-capital % 11.9 % 11.2 % 16.8 %
Global Days Sales Outstanding 52 49 50

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JULY 3, 2011 AND JULY 4, 2010
(UNAUDITED)
(In millions of dollars)
2011 2010
Cash flows from operating activities
Net earnings $ 19.9 $ 1.9
Noncash adjustments:
Impairment of assets - 1.5
Depreciation and amortization 16.3 17.8
Provision for bad debts 2.2 0.5
Stock-based compensation 1.9 1.4
Other, net (0.1 ) 0.8
Changes in operating assets and liabilities (47.0 ) (44.2 )
Net cash from operating activities (6.8 ) (20.3 )
Cash flows from investing activities
Capital expenditures (6.3 ) (3.8 )
Settlement of forward exchange contracts 0.7 -
Other investing activities 0.2 0.9
Net cash from investing activities (5.4 ) (2.9 )
Cash flows from financing activities
Net change in short-term borrowings 71.9 (11.8 )
Repayment of debt (62.9 ) (7.3 )
Sale of stock and other financing activities (1.1 ) 24.2
Net cash from financing activities 7.9 5.1
Effect of exchange rates on cash and equivalents 4.3 (5.5 )
Net change in cash and equivalents - (23.6 )
Cash and equivalents at beginning of period 80.5 88.9
Cash and equivalents at end of period $ 80.5 $ 65.3

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Second Quarter (Commercial, PT and OCG)
% Change
Constant
2011 2010 US$ Currency
Americas
United States $ 863.3 $ 770.8 12.0 % 12.0 %
Canada 61.4 54.5 12.8 6.0
Mexico 27.6 21.9 25.9 17.2
Puerto Rico 24.1 19.2 25.7 25.7
Total Americas 976.4 866.4 12.7 12.1
EMEA
France 78.1 67.6 15.5 1.7
Switzerland 62.3 40.7 52.9 19.5
Russia 37.8 25.4 48.4 36.5
United Kingdom 30.5 34.2 (10.8 ) (18.4 )
Portugal 22.7 19.1 18.8 4.5
Germany 21.0 16.2 29.1 13.6
Italy 18.5 14.7 26.3 10.9
Norway 17.5 14.1 24.0 7.6
Other 22.5 16.9 33.6 16.2
Total EMEA 310.9 248.9 24.9 8.3
APAC
Australia 37.1 28.7 29.6 7.9
Singapore 26.3 19.6 34.1 19.3
Malaysia 18.8 16.3 15.5 7.5
India 17.5 15.2 15.6 13.1
Other 18.8 14.3 31.5 18.0
Total APAC 118.5 94.1 26.1 12.6
Total Kelly Services, Inc. $ 1,405.8 $ 1,209.4 16.2 % 11.3 %

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
June Year to Date (Commercial, PT and OCG)
% Change

2011

2010

US$
Constant
Currency
Americas
United States $ 1,703.0 $ 1,481.0 15.0 % 15.0 %
Canada 120.8 106.1 13.9 7.5
Mexico 52.7 40.9 28.8 20.8
Puerto Rico 46.2 33.9 36.1 36.1
Total Americas 1,922.7 1,661.9 15.7 15.1
EMEA
France 148.1 134.9 9.8 3.3
Switzerland 109.5 72.1 51.9 25.6
Russia 72.0 48.7 47.7 39.9
United Kingdom 61.6 71.8 (14.3 ) (19.2 )
Portugal 43.3 37.5 15.6 8.6
Germany 41.3 32.5 26.9 19.6
Italy 35.1 31.4 11.9 4.8
Norway 32.6 28.0 16.4 6.9
Other 45.7 36.1 26.7 18.4
Total EMEA 589.2 493.0 19.5 9.8
APAC
Australia 73.5 56.3 30.6 13.0
Singapore 52.4 38.5 36.0 22.4
Malaysia 36.4 30.9 17.9 8.4
India 35.1 28.9 21.7 19.6
Other 35.6 30.3 17.3 8.0
Total APAC 233.0 184.9 26.0 14.4
Total Kelly Services, Inc. $ 2,744.9 $ 2,339.8 17.3 % 13.9 %

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
Second Quarter June Year to Date
2011 2010 2011 2010
Pretax earnings from operations $ 21.3 $ 8.5 $ 22.9 $ 6.9
Restructuring charges (Note 1) (0.6 ) - 3.4 4.4
Asset impairments (Note 2) - 1.5 - 1.5
Earnings from operations excluding restructuring and asset impairment charges
$20.7

$10.0

$26.3

$12.8
Second Quarter
2011 2010
Amount Per Share Amount Per Share
Earnings from continuing operations, net of taxes $ 20.0 $ 0.53 $ 3.9 $ 0.11
Restructuring charges, net of taxes (Note 1) (0.6 ) (0.02 ) - -
Asset impairments, net of taxes (Note 2) - - 1.2 0.03
Earnings from continuing operations excluding restructuring and asset impairment charges, net of taxes
$19.4

$0.52

$5.1

$0.14
June Year to Date
2011 2010
Amount Per Share Amount Per Share
Earnings from continuing operations, net of taxes $ 21.1 $ 0.56 $ 1.9 $ 0.05
Restructuring charges, net of taxes (Note 1) 3.4 0.09 3.6 0.10
Asset impairments, net of taxes (Note 2) - - 1.2 0.03
Earnings from continuing operations excluding restructuring and asset impairment charges, net of taxes
$24.5

$0.65

$6.7

$0.19

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring and impairment charges is useful to understand the Company's fiscal 2011 financialperformance and increases comparability. Specifically, Management believes that excluding these items 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) In 2010, restructuring costs related primarily to severance and lease termination costs for branches in the EMEA and APAC Commercial segments that were in the process of closure at the end of 2009, as well as severance costs related to the corporate headquarters. In 2011, restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.

(2) Asset impairment charges relate to the write-off of incomplete software projects in Europe.

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