SOURCE: Kelly Services, Inc.

Kelly Services, Inc.

August 08, 2012 07:30 ET

Kelly Services® Reports 2nd Quarter 2012 Results

TROY, MI--(Marketwire - Aug 8, 2012) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter of 2012.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2012 totaled $1.4 billion, a 3% decrease compared to the corresponding quarter of 2011.

Earnings from operations for the second quarter of 2012 totaled $23.8 million, compared to $21.3 million reported for the second quarter of 2011. Included in the results from operations for the second quarter of 2012 is a benefit due to changes in the estimated cost of restructuring of $2.2 million. The results from operations in the second quarter of 2011 also included a benefit due to changes in the estimated cost of restructuring of $0.6 million. Excluding the adjustments to restructuring charges, earnings from operations were $21.6 million in the second quarter of 2012 compared to $20.7 million in 2011.

Diluted earnings per share from continuing operations in the second quarter of 2012 were $0.40 compared to $0.53 per share in the second quarter of 2011. The benefit from adjustments to restructuring costs was $0.06 per share in the second quarter of 2012 and $0.02 per share in the second quarter of 2011.

Commenting on the second quarter results, Camden stated, "Despite tepid economic growth in the US and recessionary conditions across much of Europe, Kelly® made positive strides in the second quarter. We increased our GP, improved our operating profit, and kept a tight lid on expenses -- all while delivering solid, sustained growth in OCG and our higher-margin staffing businesses."

Kelly also reported that on August 7, its board of directors declared a dividend of $0.05 per share. The dividend is payable September 6, 2012 to shareholders of record as of the close of business on August 17, 2012.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 8 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:
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 triggered 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 and collective actions, liability for improper disclosure of sensitive or private employee information, 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 and the expiration of the U.S. work opportunity credit program), the net financial impact of the Patient Protection and Affordable Care Act 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 550,000 employees annually. Revenue in 2011 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. Click to download The Talent Project, our free iPad app.

   
KELLY SERVICES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF EARNINGS  
FOR THE 13 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011  
(UNAUDITED)  
(In millions of dollars except per share data)  
                             
    2012     2011     Change         % Change  
                                   
Revenue from services   $ 1,366.1     $ 1,405.8     $ (39.7 )       (2.8) %
                                   
Cost of services     1,142.9       1,183.7       (40.8 )       (3.4 )
                                   
Gross profit     223.2       222.1       1.1         0.5  
                                   
Selling, general and administrative expenses     199.4       200.8       (1.4 )       (0.7 )
                                   
Earnings from operations     23.8       21.3       2.5         12.0  
                                   
Other expense, net     (0.5 )     (0.7 )     0.2         21.4  
                                   
Earnings from continuing operations before taxes     23.3       20.6       2.7         13.0  
                                   
Income taxes     8.3       0.6       7.7         NM  
                                   
Earnings from continuing operations     15.0       20.0       (5.0 )       (24.6 )
                                   
Earnings (loss) from discontinued operations, net of tax     -       (1.2 )     1.2         NM  
                                   
Net earnings   $ 15.0     $ 18.8     $ (3.8 )       (19.9) %
                                   
Basic earnings per share on common stock                                  
  Earnings from continuing operations   $ 0.40     $ 0.53     $ (0.13 )       (24.5) %
  Earnings (loss) from discontinued operations     -       (0.03 )     0.03         NM  
  Net earnings     0.40       0.50       (0.10 )       (20.0 )
                                   
Diluted earnings per share on common stock                                  
  Earnings from continuing operations   $ 0.40     $ 0.53     $ (0.13 )       (24.5) %
  Earnings (loss) from discontinued operations     -       (0.03 )     0.03         NM  
  Net earnings     0.40       0.50       (0.10 )       (20.0 )
                                   
                                   
STATISTICS:                                  
                                   
Gross profit rate     16.3 %     15.8 %     0.5     pts.      
                                   
Selling, general and administrative expenses:                                  
  % of revenue     14.6       14.3       0.3            
  % of gross profit     89.4       90.5       (1.1 )          
                                   
% Return:                                  
  Earnings from operations     1.7       1.5       0.2            
  Earnings from continuing operations before taxes     1.7       1.5       0.2            
  Earnings from continuing operations     1.1       1.4       (0.3 )          
  Net earnings     1.1       1.3       (0.2 )          
                                   
Effective income tax rate     35.5 %     3.3 %     32.2     pts.       
                                   
Average number of shares outstanding (millions):                                  
  Basic     37.0       36.8                    
  Diluted     37.0       36.8                    
                                   
Shares adjusted for nonvested restricted awards (millions):                                  
  Basic     37.8       37.4                    
  Diluted     37.8       37.4                    
                                   
                                   
   
KELLY SERVICES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF EARNINGS  
FOR THE 26 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011  
(UNAUDITED)  
(In millions of dollars except per share data)  
                             
    2012     2011     Change         % Change  
                                   
Revenue from services   $ 2,720.9     $ 2,744.9     $ (24.0 )       (0.9 )%
                                   
Cost of services     2,274.0       2,311.6       (37.6 )       (1.6 )
                                   
Gross profit     446.9       433.3       13.6         3.1  
                                   
Selling, general and administrative expenses     408.4       410.4       (2.0 )       (0.5 )
                                   
Earnings from operations     38.5       22.9       15.6         68.3  
                                   
Other expense, net     (1.1 )     (1.1 )     -         (2.8 )
                                   
Earnings from continuing operations before taxes     37.4       21.8       15.6         71.5  
                                   
Income taxes     13.2       0.7       12.5         NM  
                                   
Earnings from continuing operations     24.2       21.1       3.1         15.0  
                                   
Earnings (loss) from discontinued operations, net of tax     0.4       (1.2 )     1.6         NM  
                                   
Net earnings   $ 24.6     $ 19.9     $ 4.7         24.0 %
                                   
Basic earnings per share on common stock                                  
  Earnings from continuing operations   $ 0.64     $ 0.56     $ 0.08         14.3 %
  Earnings (loss) from discontinued operations     0.01       (0.03 )     0.04         NM  
  Net earnings     0.65       0.53       0.12         22.6  
                                   
Diluted earnings per share on common stock                                  
  Earnings from continuing operations   $ 0.64     $ 0.56     $ 0.08         14.3 %
  Earnings (loss) from discontinued operations     0.01       (0.03 )     0.04         NM  
  Net earnings     0.65       0.53       0.12         22.6  
                                   
                                   
STATISTICS:                                  
                                   
Gross profit rate     16.4 %     15.8 %     0.6     pts.       
                                   
Selling, general and administrative expenses:                                  
  % of revenue     15.0       15.0       0.0            
  % of gross profit     91.4       94.7       (3.3 )          
                                   
% Return:                                  
  Earnings from operations     1.4       0.8       0.6            
  Earnings from continuing operations before taxes     1.4       0.8       0.6            
  Earnings from continuing operations     0.9       0.8       0.1            
  Net earnings     0.9       0.7       0.2            
                                   
Effective income tax rate     35.2 %     3.4 %     31.8     pts.       
                                   
Average number of shares outstanding (millions):                                  
  Basic     36.9       36.7                    
  Diluted     37.0       36.7                    
                                   
Shares adjusted for nonvested restricted awards (millions):                                  
  Basic     37.8       37.4                    
  Diluted     37.8       37.4                    
                                   
                                   
 
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    Second Quarter
                              Constant  
                              Currency  
    2012     2011     Change         Change  
Americas Commercial                                
  Revenue from services (including fee-based income)   $ 668.6     $ 670.3     (0.3 )     1.0 %
  Fee-based income     4.2       2.8     48.9         54.2  
  Gross profit     97.7       93.3     4.7         6.0  
                                 
  Gross profit rate     14.6 %     13.9 %   0.7     pts.      
                                 
Americas PT                                
  Revenue from services (including fee-based income)   $ 262.4     $ 247.7     5.9       6.2 %
  Fee-based income     4.2       3.7     13.3         13.5  
  Gross profit     39.7       35.9     10.4         10.7  
                                 
  Gross profit rate     15.1 %     14.5 %   0.6     pts.      
                                 
Total Americas                                
  Revenue from services (including fee-based income)   $ 931.0     $ 918.0     1.4       2.4 %
  Fee-based income     8.4       6.5     28.7         31.1  
  Gross profit     137.4       129.2     6.3         7.3  
  Total SG&A expenses     99.0       95.8     3.3         4.5  
  Earnings from operations     38.4       33.4     14.7            
                                 
  Gross profit rate     14.8 %     14.1 %   0.7     pts.      
  Expense rates:                                
    % of revenue     10.6       10.4     0.2            
    % of gross profit     72.0       74.1     (2.1 )          
  Operating margin     4.1       3.6     0.5            
                                 
EMEA Commercial                                
  Revenue from services (including fee-based income)   $ 213.7     $ 258.8     (17.4 )     (9.1 )%
  Fee-based income     6.2       6.6     (6.6 )       3.4  
  Gross profit     34.2       42.3     (19.1 )       (10.6 )
                                 
  Gross profit rate     16.0 %     16.3 %   (0.3 )   pts.      
                                 
EMEA PT                                
  Revenue from services (including fee-based income)   $ 41.6     $ 45.8     (9.1 )     0.1 %
  Fee-based income     4.4       5.3     (16.0 )       (7.8 )
  Gross profit     10.9       12.4     (12.1 )       (3.2 )
                                 
  Gross profit rate     26.1 %     27.0 %   (0.9 )   pts.      
                                 
Total EMEA                                
  Revenue from services (including fee-based income)   $ 255.3     $ 304.6     (16.2 )     (7.7 )%
  Fee-based income     10.6       11.9     (10.7 )       (1.5 )
  Gross profit     45.1       54.7     (17.5 )       (8.9 )
  SG&A expenses excluding restructuring charges     41.9       47.3     (11.4 )          
  Restructuring charges     (2.2 )     (0.6 )   268.8            
  Total SG&A expenses     39.7       46.7     (14.9 )       (6.2 )
  Earnings from operations     5.4       8.0     (32.9 )          
  Earnings from operations excluding restructuring charges     3.2       7.4     (57.0 )          
                                 
  Gross profit rate     17.6 %     17.9 %   (0.3 )   pts.      
  Expense rates (excluding restructuring charges):                                
    % of revenue     16.4       15.5     0.9            
    % of gross profit     93.0       86.6     6.4            
  Operating margin (excluding restructuring charges)     1.2       2.4     (1.2 )          
                                 
                                 
 
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    Second Quarter
                              Constant  
                              Currency  
    2012     2011     Change         Change  
APAC Commercial                                
  Revenue from services (including fee-based income)   $ 84.3     $ 102.3     (17.6 )     (14.1 )%
  Fee-based income     3.0       3.7     (14.3 )       (8.6 )
  Gross profit     12.5       14.3     (12.2 )       (8.2 )
                                 
  Gross profit rate     14.9 %     13.9 %   1.0     pts.      
                                 
APAC PT                                
  Revenue from services (including fee-based income)   $ 12.8     $ 13.5     (5.4 )     (1.6 )%
  Fee-based income     4.1       4.2     (2.0 )       (0.4 )
  Gross profit     5.3       5.6     (4.5 )       (2.2 )
                                 
  Gross profit rate     41.7 %     41.3 %   0.4     pts.      
                                 
Total APAC                                
  Revenue from services (including fee-based income)   $ 97.1     $ 115.8     (16.2 )     (12.7 )%
  Fee-based income     7.1       7.9     (7.7 )       (4.2 )
  Gross profit     17.8       19.9     (10.0 )       (6.5 )
  Total SG&A expenses     19.0       20.3     (6.4 )       (2.6 )
  Earnings from operations     (1.2 )     (0.4 )   (143.0 )          
                                 
  Gross profit rate     18.4 %     17.1 %   1.3     pts.      
  Expense rates:                                
    % of revenue     19.6       17.5     2.1            
    % of gross profit     106.6       102.4     4.2            
  Operating margin     (1.2 )     (0.4 )   (0.8 )          
                                 
OCG                                
  Revenue from services (including fee-based income)   $ 91.4     $ 74.0     23.4       25.0 %
  Fee-based income     12.8       9.5     35.2         39.1  
  Gross profit     23.7       19.0     24.4         27.2  
  Total SG&A expenses     22.8       19.8     14.8         17.9  
  Earnings from operations     0.9       (0.8 )   NM            
                                 
  Gross profit rate     25.9 %     25.7 %   0.2     pts.      
  Expense rates:                                
    % of revenue     25.0       26.8     (1.8 )          
    % of gross profit     96.5       104.5     (8.0 )          
  Operating margin     0.9       (1.2 )   2.1            
                                   
                                   
 
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    June Year to Date
                              Constant  
                              Currency  
    2012     2011     Change         Change  
Americas Commercial                                
  Revenue from services (including fee-based income)   $ 1,337.9     $ 1,323.6     1.1       2.0 %
  Fee-based income     7.7       5.6     36.9         40.1  
  Gross profit     195.7       185.3     5.5         6.5  
                                 
  Gross profit rate     14.6 %     14.0 %   0.6     pts.      
                                 
Americas PT                                
  Revenue from services (including fee-based income)   $ 512.5     $ 488.3     5.0       5.2 %
  Fee-based income     7.6       6.5     17.7         17.8  
  Gross profit     79.9       71.9     11.0         11.2  
                                 
  Gross profit rate     15.6 %     14.7 %   0.9     pts.      
                                 
Total Americas                                
  Revenue from services (including fee-based income)   $ 1,850.4     $ 1,811.9     2.1       2.9 %
  Fee-based income     15.3       12.1     26.6         28.2  
  Gross profit     275.6       257.2     7.1         7.8  
  Total SG&A expenses     201.9       198.6     1.6         2.4  
  Earnings from operations     73.7       58.6     25.5            
                                 
  Gross profit rate     14.9 %     14.2 %   0.7     pts.      
  Expense rates:                                
    % of revenue     10.9       11.0     (0.1 )          
    % of gross profit     73.3       77.2     (3.9 )          
  Operating margin     4.0       3.2     0.8            
                                 
EMEA Commercial                                
  Revenue from services (including fee-based income)   $ 426.7     $ 490.3     (13.0 )     (7.5 )%
  Fee-based income     12.3       12.4     (0.7 )       6.1  
  Gross profit     67.7       79.5     (14.8 )       (9.2 )
                                 
  Gross profit rate     15.9 %     16.2 %   (0.3 )   pts.      
                                 
EMEA PT                                
  Revenue from services (including fee-based income)   $ 83.8     $ 87.2     (3.8 )     2.3 %
  Fee-based income     9.0       9.7     (6.9 )       (1.2 )
  Gross profit     22.2       23.4     (5.1 )       0.9  
                                 
  Gross profit rate     26.4 %     26.8 %   (0.4 )   pts.      
                                 
Total EMEA                                
  Revenue from services (including fee-based income)   $ 510.5     $ 577.5     (11.6 )     (6.0 )%
  Fee-based income     21.3       22.1     (3.4 )       2.9  
  Gross profit     89.9       102.9     (12.6 )       (6.9 )
  SG&A expenses excluding restructuring charges     86.4       93.2     (7.4 )          
  Restructuring charges     (2.2 )     3.4     (164.1 )          
  Total SG&A expenses     84.2       96.6     (12.9 )       (7.6 )
  Earnings from operations     5.7       6.3     (8.8 )          
  Earnings from operations excluding restructuring charges     3.5       9.7     (63.2 )          
                                 
  Gross profit rate     17.6 %     17.8 %   (0.2 )   pts.      
  Expense rates (excluding restructuring charges):                                
    % of revenue     16.9       16.1     0.8            
    % of gross profit     96.1       90.7     5.4            
  Operating margin (excluding restructuring charges)     0.7       1.7     (1.0 )          
                                   
                                   
 
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    June Year to Date
                              Constant  
                              Currency  
    2012     2011     Change         Change  
APAC Commercial                                
  Revenue from services (including fee-based income)   $ 172.6     $ 202.0     (14.5 )    %   (13.5 )%
  Fee-based income     6.4       7.2     (9.7 )       (7.4 )
  Gross profit     25.6       27.8     (7.8 )       (6.8 )
                                 
  Gross profit rate     14.8 %     13.7 %   1.1     pts.       
                                 
APAC PT                                
  Revenue from services (including fee-based income)   $ 25.6     $ 25.0     2.6      %   3.9 %
  Fee-based income     8.1       8.0     0.8         0.5  
  Gross profit     10.5       10.6     (0.5 )       (0.4 )
                                 
  Gross profit rate     41.1 %     42.4 %   (1.3 )   pts.       
                                 
Total APAC                                
  Revenue from services (including fee-based income)   $ 198.2     $ 227.0     (12.6 )    %   (11.6 )%
  Fee-based income     14.5       15.2     (4.2 )       (3.2 )
  Gross profit     36.1       38.4     (5.8 )       (5.1 )
  Total SG&A expenses     38.7       39.3     (1.7 )       (0.9 )
  Earnings from operations     (2.6 )     (0.9 )   (151.2 )          
                                 
  Gross profit rate     18.2 %     16.9 %   1.3     pts.       
  Expense rates:                                
    % of revenue     19.5       17.3     2.2            
    % of gross profit     107.1       102.7     4.4            
  Operating margin     (1.3 )     (0.4 )   (0.9 )          
                                 
OCG                                
  Revenue from services (including fee-based income)   $ 178.1     $ 142.2     25.2      %   26.2 %
  Fee-based income     24.4       18.2     34.4         36.7  
  Gross profit     46.8       36.0     29.7         31.5  
  Total SG&A expenses     45.4       39.2     15.6         17.4  
  Earnings from operations     1.4       (3.2 )   NM            
                                 
  Gross profit rate     26.3 %     25.4 %   0.9     pts.       
  Expense rates:                                
    % of revenue     25.5       27.6     (2.1 )          
    % of gross profit     97.1       109.0     (11.9 )          
  Operating margin     0.7       (2.3 )   3.0            
                                 
                                 
   
KELLY SERVICES, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
(In millions of dollars)  
   
    July 1, 2012     January 1, 2012     July 3, 2011  
Current Assets                        
  Cash and equivalents   $ 65.2     $ 81.0     $ 80.5  
  Trade accounts receivable, less allowances of $11.8, $13.4 and $13.6, respectively     985.0       944.9       929.8  
  Prepaid expenses and other current assets     57.9       50.6       74.1  
  Deferred taxes     33.4       38.2       20.6  
                         
    Total current assets     1,141.5       1,114.7       1,105.0  
                         
Property and Equipment, Net     90.3       90.6       96.2  
                         
Noncurrent Deferred Taxes     93.4       94.1       84.1  
                         
Goodwill, Net     91.4       90.2       67.3  
                         
Other Assets     168.4       152.1       156.4  
                         
Total Assets   $ 1,585.0     $ 1,541.7     $ 1,509.0  
                         
Current Liabilities                        
  Short-term borrowings   $ 88.5     $ 96.3     $ 89.0  
  Accounts payable and accrued liabilities     269.5       237.2       222.9  
  Accrued payroll and related taxes     253.7       271.4       278.0  
  Accrued insurance     30.3       31.5       31.9  
  Income and other taxes     56.5       61.3       70.7  
                         
    Total current liabilities     698.5       697.7       692.5  
                         
Noncurrent Liabilities                        
  Accrued insurance     51.4       53.5       54.6  
  Accrued retirement benefits     102.8       91.1       91.0  
  Other long-term liabilities     24.0       23.7       13.7  
                         
    Total noncurrent liabilities     178.2       168.3       159.3  
                         
Stockholders' Equity                        
  Common stock     40.1       40.1       40.1  
  Treasury stock     (63.2 )     (66.9 )     (68.7 )
  Paid-in capital     27.4       28.8       28.0  
  Earnings invested in the business     678.3       657.5       617.5  
  Accumulated other comprehensive income     25.7       16.2       40.3  
                         
    Total stockholders' equity     708.3       675.7       657.2  
                         
Total Liabilities and Stockholders' Equity   $ 1,585.0     $ 1,541.7     $ 1,509.0  
                         
                         
STATISTICS:                        
Working Capital   $ 443.0     $ 417.0     $ 412.5  
Current Ratio     1.6       1.6       1.6  
Debt-to-capital %     11.1 %     12.5 %     11.9 %
Global Days Sales Outstanding     53       52       52  
                         
                         
   
KELLY SERVICES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
FOR THE 26 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011  
(UNAUDITED)  
(In millions of dollars)  
                 
    2012     2011  
                 
Cash flows from operating activities                
  Net earnings   $ 24.6     $ 19.9  
  Noncash adjustments:                
    Depreciation and amortization     11.6       16.3  
    Provision for bad debts     0.6       2.2  
    Stock-based compensation     2.1       1.9  
    Other, net     -       (0.1 )
  Changes in operating assets and liabilities     (33.0 )     (47.0 )
                 
      Net cash from operating activities     5.9       (6.8 )
                 
Cash flows from investing activities                
  Capital expenditures     (9.8 )     (6.3 )
  Other investing activities     -       0.9  
                 
      Net cash from investing activities     (9.8 )     (5.4 )
                 
Cash flows from financing activities                
  Net change in short-term borrowings     (7.8 )     71.9  
  Repayment of debt     -       (62.9 )
  Dividend payments     (3.8 )     -  
  Other financing activities     -       (1.1 )
                 
      Net cash from financing activities     (11.6 )     7.9  
                 
Effect of exchange rates on cash and equivalents     (0.3 )     4.3  
                 
Net change in cash and equivalents     (15.8 )     0.0  
Cash and equivalents at beginning of period     81.0       80.5  
                 
                 
Cash and equivalents at end of period   $ 65.2     $ 80.5  
                 
                 
   
KELLY SERVICES, INC. AND SUBSIDIARIES  
REVENUE FROM SERVICES  
(UNAUDITED)  
(In millions of dollars)  
                         
    Second Quarter (Commercial, PT and OCG)  
                % Change  
                      Constant  
    2012   2011   US$     Currency  
                         
Americas                        
  United States   $ 874.4   $ 863.3   1.3 %   1.3 %
  Canada     62.0     61.4   0.8     5.2  
  Puerto Rico     25.9     24.1   7.7     7.7  
  Mexico     25.8     27.6   (6.4 )   8.2  
  Brazil     14.4     -   NM     NM  
Total Americas     1,002.5     976.4   2.7     3.6  
                         
EMEA                        
  France     61.1     78.1   (21.7 )   (12.1 )
  Switzerland     59.8     62.3   (4.0 )   3.7  
  Russia     31.8     37.8   (16.0 )   (6.5 )
  United Kingdom     26.0     30.5   (14.7 )   (12.1 )
  Portugal     19.0     22.7   (16.2 )   (5.9 )
  Germany     17.4     21.0   (17.0 )   (6.8 )
  Norway     16.7     17.5   (3.7 )   4.5  
  Italy     15.1     18.5   (18.9 )   (8.8 )
  Other     15.6     22.5   (30.8 )   (21.6 )
Total EMEA     262.5     310.9   (15.6 )   (7.0 )
                         
APAC                        
  Australia     32.3     37.1   (12.8 )   (8.6 )
  Singapore     24.9     26.3   (5.6 )   (3.6 )
  Malaysia     18.0     18.8   (4.5 )   (1.5 )
  New Zealand     13.4     12.9   3.3     5.0  
  India     5.9     17.5   (66.3 )   (59.4 )
  Other     6.6     5.9   12.7     15.8  
Total APAC     101.1     118.5   (14.8 )   (11.2 )
                         
Total Kelly Services, Inc.   $ 1,366.1   $ 1,405.8   (2.8 )%   0.0 %
                         
                         
   
KELLY SERVICES, INC. AND SUBSIDIARIES  
REVENUE FROM SERVICES  
(UNAUDITED)  
(In millions of dollars)  
                         
    June Year to Date (Commercial, PT and OCG)  
                % Change  
                      Constant  
    2012   2011   US$     Currency  
                         
Americas                        
  United States   $ 1,732.9   $ 1,703.0   1.8 %   1.8 %
  Canada     121.5     120.8   0.5     3.5  
  Puerto Rico     51.8     46.2   12.3     12.3  
  Mexico     51.3     52.7   (2.6 )   8.5  
  Brazil     32.4     -   NM     NM  
Total Americas     1,989.9     1,922.7   3.5     4.2  
                         
EMEA                        
  France     123.9     148.1   (16.3 )   (9.4 )
  Switzerland     113.4     109.5   3.5     6.9  
  Russia     65.4     72.0   (9.2 )   (2.8 )
  United Kingdom     53.7     61.6   (12.8 )   (10.6 )
  Portugal     37.2     43.3   (14.1 )   (6.8 )
  Germany     36.1     41.3   (12.5 )   (5.3 )
  Norway     33.2     32.6   2.1     7.2  
  Italy     31.4     35.1   (10.8 )   (3.4 )
  Other     31.2     45.7   (31.7 )   (25.3 )
Total EMEA     525.5     589.2   (10.8 )   (5.2 )
                         
APAC                        
  Australia     66.2     73.5   (9.9 )   (10.0 )
  Singapore     49.1     52.4   (6.4 )   (5.8 )
  Malaysia     35.8     36.4   (1.7 )   0.1  
  New Zealand     26.5     24.4   8.8     5.6  
  India     15.4     35.1   (56.2 )   (49.8 )
  Other     12.5     11.2   12.0     13.5  
Total APAC     205.5     233.0   (11.8 )   (10.7 )
                         
Total Kelly Services, Inc.   $ 2,720.9   $ 2,744.9   (0.9 )%   0.9 %
                         
                         
   
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  
    2012     2011     2012     2011  
                                 
Pretax earnings from operations   $ 23.8     $ 21.3     $ 38.5     $ 22.9  
                                 
Restructuring charges (Note 1)     (2.2 )     (0.6 )     (2.2 )     3.4  
                                 
Earnings from operations excluding restructuring charges   $ 21.6     $ 20.7     $ 36.3     $ 26.3  
                                 
                                 
    Second Quarter  
    2012     2011  
    Amount     Per Share     Amount     Per Share  
                                 
Earnings from continuing operations, net of taxes   $ 15.0     $ 0.40     $ 20.0     $ 0.53  
                                 
Restructuring charges, net of taxes (Note 1)     (2.2 )     (0.06 )     (0.6 )     (0.02 )
                                 
Earnings from continuing operations excluding restructuring charges, net of taxes   $ 12.8     $ 0.34     $ 19.4     $ 0.52  
                                 
                                 
    June Year to Date  
    2012     2011  
    Amount     Per Share     Amount     Per Share  
                                 
Earnings from continuing operations, net of taxes   $ 24.2     $ 0.64     $ 21.1     $ 0.56  
                                 
Restructuring charges, net of taxes (Note 1)     (2.2 )     (0.06 )     3.4       0.09  
                                 
Earnings from continuing operations excluding restructuring charges, net of taxes   $ 22.0     $ 0.58     $ 24.5     $ 0.65  
                                 
                                 

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 charges is useful to understand the Company's fiscal 2012 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) Restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.
   
   

Contact Information