U.S. 1 800 288-9626 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, but are not limited to, competitive market pressures including pricing, changing market and economic conditions, material changes in demand from large corporate customers, availability of temporary workers with appropriate skills required by customers, increases in wages paid to temporary workers, liabilities for client and employee actions, foreign currency fluctuations, changes in laws and regulations (including federal, state and international tax laws), continued availability of financing for funding working capital and acquisitions and for general corporate purposes, the Company's ability to effectively implement and manage its information technology programs, the ability of the Company to successfully expand into new markets and service lines, and other risks, uncertainties and factors discussed in this release and in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2010 and Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2010 filed with the Securities and Exchange Commission. Actual results may differ materially from any forward looking statements contained herein. About Kelly Services Kelly Services, Inc. (
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
--------- --------- --------- ---------
Revenue from services $ 1,284.7 $ 1,049.2 $ 235.5 22.4%
Cost of services 1,077.5 883.0 194.5 22.0
--------- --------- --------- ---------
Gross profit 207.2 166.2 41.0 24.7
Selling, general and
administrative expenses 192.9 193.7 (0.8) (0.4)
Asset impairments - 0.5 (0.5) (100.0)
--------- --------- --------- ---------
Earnings (loss) from operations 14.3 (28.0) 42.3 NM
Other expense, net (1.5) (1.6) 0.1 8.1
--------- --------- --------- ---------
Earnings (loss) from continuing
operations before taxes 12.8 (29.6) 42.4 NM
Income taxes 3.2 (14.8) 18.0 121.7
--------- --------- --------- ---------
Earnings (loss) from continuing
operations 9.6 (14.8) 24.4 NM
Earnings from discontinued
operations, net of tax - - - NM
--------- --------- --------- ---------
Net earnings (loss) $ 9.6 $ (14.8) $ 24.4 NM%
========= ========= ========= =========
Basic earnings (loss) per share
on common stock
Earnings (loss) from
continuing operations $ 0.26 $ (0.43) $ 0.69 NM%
Earnings from discontinued
operations - - - NM
Net earnings (loss) 0.26 (0.43) 0.69 NM
Diluted earnings (loss) per
share on common stock
Earnings (loss) from
continuing operations $ 0.26 $ (0.43) $ 0.69 NM%
Earnings from discontinued
operations - - - NM
Net earnings (loss) 0.26 (0.43) 0.69 NM
STATISTICS:
Gross profit rate 16.1% 15.8% 0.3 pts.
Selling, general and
administrative expenses:
% of revenue 15.0 18.5 (3.5)
% of gross profit 93.1 116.5 (23.4)
% Return - Earnings (loss)
from operations 1.1 (2.7) 3.8
Earnings (loss) from
continuing operations
before taxes 1.0 (2.8) 3.8
Earnings (loss) from
continuing operations 0.7 (1.4) 2.1
Net earnings (loss) 0.7 (1.4) 2.1
Effective income tax rate 25.1% 49.9% (24.8) pts.
Average number of shares
outstanding (millions):
Basic 36.7 34.9
Diluted 36.7 34.9
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
--------- --------- --------- ---------
Revenue from services $ 3,624.5 $ 3,120.7 $ 503.8 16.1%
Cost of services 3,046.4 2,607.3 439.1 16.8
--------- --------- --------- ---------
Gross profit 578.1 513.4 64.7 12.6
Selling, general and
administrative expenses 555.4 593.4 (38.0) (6.4)
Asset impairments 1.5 53.1 (51.6) (97.1)
--------- --------- --------- ---------
Earnings (loss) from operations 21.2 (133.1) 154.3 NM
Other expense, net (4.7) (1.3) (3.4) (253.3)
--------- --------- --------- ---------
Earnings (loss) from continuing
operations before taxes 16.5 (134.4) 150.9 NM
Income taxes 5.0 (37.5) 42.5 113.5
--------- --------- --------- ---------
Earnings (loss) from continuing
operations 11.5 (96.9) 108.4 NM
Earnings from discontinued
operations, net of tax - 0.6 (0.6) (100.0)
--------- --------- --------- ---------
Net earnings (loss) $ 11.5 $ (96.3) $ 107.8 NM%
========= ========= ========= =========
Basic earnings (loss) per share
on common stock
Earnings (loss) from
continuing operations $ 0.32 $ (2.78) $ 3.10 NM%
Earnings from discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.32 (2.76) 3.08 NM
Diluted earnings (loss) per
share on common stock
Earnings (loss) from
continuing operations $ 0.32 $ (2.78) $ 3.10 NM%
Earnings from discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.32 (2.76) 3.08 NM
STATISTICS:
Gross profit rate 16.0% 16.5% (0.5) pts.
Selling, general and
administrative expenses:
% of revenue 15.3 19.0 (3.7)
% of gross profit 96.1 115.6 (19.5)
% Return - Earnings (loss)
from operations 0.6 (4.3) 4.9
Earnings (loss) from
continuing operations
before taxes 0.5 (4.3) 4.8
Earnings (loss) from
continuing operations 0.3 (3.1) 3.4
Net earnings (loss) 0.3 (3.1) 3.4
Effective income tax rate 30.6% 27.9% 2.7 pts.
Average number of shares
outstanding (millions):
Basic 35.9 34.9
Diluted 35.9 34.9
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Third Quarter
------------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- --------- ---------
Americas Commercial
Revenue from services
(including fee-based income) $ 633.3 $ 467.5 35.5% 34.7%
Fee-based income 2.2 1.7 23.8 22.5
Gross profit 92.3 67.2 37.4 36.7
SG&A expenses excluding
restructuring charges 69.1 66.0 4.7
Restructuring charges - 1.8 (100.0)
Total SG&A expenses 69.1 67.8 2.0 1.4
Earnings from operations 23.2 (0.6) NM
Earnings from operations
excluding restructuring
charges 23.2 1.2 NM
Gross profit rate 14.6% 14.4% 0.2 pts.
Expense rates (excluding
restructuring charges):
% of revenue 10.9 14.1 (3.2)
% of gross profit 74.8 98.2 (23.4)
Operating margin (excluding
restructuring charges) 3.7 0.3 3.4
Americas PT
Revenue from services
(including fee-based income) $ 233.6 $ 192.1 21.6% 21.5%
Fee-based income 2.2 2.1 1.9 1.8
Gross profit 37.2 29.5 26.2 26.0
SG&A expenses excluding
restructuring charges 23.5 24.5 (4.4)
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 23.5 24.6 (4.8) (5.0)
Earnings from operations 13.7 4.9 185.1
Earnings from operations
excluding restructuring
charges 13.7 5.0 178.3
Gross profit rate 15.9% 15.4% 0.5 pts.
Expense rates (excluding
restructuring charges):
% of revenue 10.1 12.8 (2.7)
% of gross profit 63.1 83.3 (20.2)
Operating margin (excluding
restructuring charges) 5.9 2.6 3.3
EMEA Commercial
Revenue from services
(including fee-based income) $ 228.1 $ 228.0 0.0% 5.2%
Fee-based income 4.5 3.7 23.9 27.8
Gross profit 37.2 33.9 9.7 15.3
SG&A expenses excluding
restructuring charges 32.4 37.7 (13.7)
Restructuring charges - 1.8 (100.0)
Total SG&A expenses 32.4 39.5 (17.7) (13.8)
Earnings from operations 4.8 (5.6) NM
Earnings from operations
excluding restructuring
charges 4.8 (3.8) NM
Gross profit rate 16.3% 14.9% 1.4 pts.
Expense rates (excluding
restructuring charges):
% of revenue 14.2 16.5 (2.3)
% of gross profit 87.2 110.9 (23.7)
Operating margin (excluding
restructuring charges) 2.1 (1.6) 3.7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Third Quarter
------------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- --------- ---------
EMEA PT
Revenue from services
(including fee-based income) $ 37.1 $ 36.4 1.9% 8.5%
Fee-based income 3.6 3.9 (8.9) (5.7)
Gross profit 9.6 9.8 (1.8) 3.7
Total SG&A expenses 9.3 9.9 (6.9) (2.5)
Earnings from operations 0.3 (0.1) NM
Gross profit rate 26.0% 27.0% (1.0) pts.
Expense rates:
% of revenue 25.0 27.3 (2.3)
% of gross profit 96.1 101.3 (5.2)
Operating margin 1.0 (0.4) 1.4
APAC Commercial
Revenue from services
(including fee-based income) $ 88.7 $ 71.2 24.6% 15.4%
Fee-based income 3.0 2.3 29.0 19.7
Gross profit 12.4 10.3 19.9 10.9
SG&A expenses excluding
restructuring charges 11.4 11.4 0.1
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 11.4 11.5 (0.7) (7.8)
Earnings from operations 1.0 (1.2) NM
Earnings from operations
excluding restructuring
charges 1.0 (1.1) NM
Gross profit rate 14.0% 14.5% (0.5) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.8 16.0 (3.2)
% of gross profit 92.0 110.3 (18.3)
Operating margin (excluding
restructuring charges) 1.1 (1.5) 2.6
APAC PT
Revenue from services
(including fee-based income) $ 8.2 $ 6.5 27.3% 18.8%
Fee-based income 2.9 1.0 179.5 164.0
Gross profit 3.8 2.0 89.9 78.6
Total SG&A expenses 4.3 2.3 87.9 77.6
Earnings from operations (0.5) (0.3) (77.2)
Gross profit rate 45.2% 30.3% 14.9 pts.
Expense rates:
% of revenue 53.0 35.9 17.1
% of gross profit 117.1 118.4 (1.3)
Operating margin (7.7) (5.6) (2.1)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Third Quarter
------------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- --------- ---------
OCG
Revenue from services
(including fee-based income) $ 64.1 $ 52.9 21.2% 21.3%
Fee-based income 6.6 5.8 13.6 13.5
Gross profit 15.4 13.7 11.7 12.0
SG&A expenses excluding
restructuring charges 19.6 17.3 12.9
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 19.6 17.4 12.2 13.0
Earnings from operations (4.2) (3.7) (14.4)
Earnings from operations
excluding restructuring
charges (4.2) (3.6) (17.8)
Gross profit rate 24.0% 26.1% (2.1) pts.
Expense rates (excluding
restructuring charges):
% of revenue 30.5 32.8 (2.3)
% of gross profit 127.2 125.8 1.4
Operating margin (excluding
restructuring charges) (6.5) (6.7) 0.2
Corporate Expense
SG&A expenses excluding
restructuring charges $ 21.2 $ 20.2 4.4%
Restructuring charges 2.8 0.7 301.3
Total SG&A expenses 24.0 20.9 14.4
Asset impairments - 0.5 (100.0)
Consolidated Total (net of
intersegment activity)
Revenue from services
(including fee-based income) $ 1,284.7 $ 1,049.2 22.4% 22.7%
Fee-based income 24.9 20.5 20.6 19.9
Gross profit 207.2 166.2 24.7 25.1
SG&A expenses excluding
restructuring charges 190.1 189.1 0.5
Restructuring charges 2.8 4.6 (38.2)
Total SG&A expenses 192.9 193.7 (0.4) (0.1)
Asset impairments - 0.5 (100.0)
Earnings from operations 14.3 (28.0) NM
Earnings from operations
excluding restructuring
charges 17.1 (23.4) NM
Gross profit rate 16.1% 15.8% 0.3 pts.
Expense rates (excluding
restructuring charges):
% of revenue 14.8 18.0 (3.2)
% of gross profit 91.7 113.8 (22.1)
Operating margin (excluding
restructuring charges) 1.3 (2.2) 3.5
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
September Year to Date
-----------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- -------- --------
Americas Commercial
Revenue from services
(including fee-based income) $ 1,781.9 $ 1,422.9 25.2% 23.8%
Fee-based income 6.5 5.1 26.4 23.2
Gross profit 256.5 210.9 21.6 20.3
SG&A expenses excluding
restructuring charges 201.9 205.3 (1.7)
Restructuring charges 0.3 3.7 (90.3)
Total SG&A expenses 202.2 209.0 (3.3) (4.3)
Earnings from operations 54.3 1.9 NM
Earnings from operations
excluding restructuring
charges 54.6 5.6 NM
Gross profit rate 14.4% 14.8% (0.4) pts.
Expense rates (excluding
restructuring charges):
% of revenue 11.3 14.4 (3.1)
% of gross profit 78.7 97.3 (18.6)
Operating margin (excluding
restructuring charges) 3.1 0.4 2.7
Americas PT
Revenue from services
(including fee-based income) $ 659.1 $ 584.3 12.8% 12.6%
Fee-based income 6.7 7.2 (7.3) (7.7)
Gross profit 103.2 93.2 10.9 10.6
SG&A expenses excluding
restructuring charges 69.2 76.2 (9.1)
Restructuring charges - 0.2 (100.0)
Total SG&A expenses 69.2 76.4 (9.4) (9.6)
Earnings from operations 34.0 16.8 103.2
Earnings from operations
excluding restructuring
charges 34.0 17.0 100.3
Gross profit rate 15.7% 15.9% (0.2) pts.
Expense rates (excluding
restructuring charges):
% of revenue 10.5 13.0 (2.5)
% of gross profit 67.0 81.7 (14.7)
Operating margin (excluding
restructuring charges) 5.2 2.9 2.3
EMEA Commercial
Revenue from services
(including fee-based income) $ 642.8 $ 656.3 (2.1)% (1.5)%
Fee-based income 14.4 12.3 18.0 16.4
Gross profit 103.8 102.8 1.0 1.6
SG&A expenses excluding
restructuring charges 95.7 115.1 (16.8)
Restructuring charges 2.7 10.7 (75.1)
Total SG&A expenses 98.4 125.8 (21.8) (21.8)
Asset impairments 1.5 - NM
Earnings from operations 3.9 (23.0) NM
Earnings from operations
excluding restructuring
charges 6.6 (12.3) NM
Gross profit rate 16.1% 15.7% 0.4 pts.
Expense rates (excluding
restructuring charges):
% of revenue 14.9 17.5 (2.6)
% of gross profit 92.2 111.9 (19.7)
Operating margin (excluding
restructuring charges) 1.0 (1.9) 2.9
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
September Year to Date
------------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- --------- ---------
EMEA PT
Revenue from services
(including fee-based income) $ 106.4 $ 102.3 4.0% 5.5%
Fee-based income 11.2 12.1 (7.1) (8.3)
Gross profit 28.3 28.0 1.5 2.0
Total SG&A expenses 27.6 30.0 (8.1) (8.0)
Earnings from operations 0.7 (2.0) NM
Gross profit rate 26.7% 27.4% (0.7) pts.
Expense rates:
% of revenue 25.9 29.4 (3.5)
% of gross profit 97.1 107.2 (10.1)
Operating margin 0.8 (2.0) 2.8
APAC Commercial
Revenue from services
(including fee-based income) $ 253.3 $ 201.9 25.4% 12.1%
Fee-based income 8.5 6.8 23.2 10.4
Gross profit 35.5 29.5 20.4 7.0
SG&A expenses excluding
restructuring charges 32.0 33.0 (3.0)
Restructuring charges 0.5 0.2 283.6
Total SG&A expenses 32.5 33.2 (1.8) (12.7)
Earnings from operations 3.0 (3.7) NM
Earnings from operations
excluding restructuring
charges 3.5 (3.5) NM
Gross profit rate 14.0% 14.6% (0.6) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.6 16.3 (3.7)
% of gross profit 90.3 112.0 (21.7)
Operating margin (excluding
restructuring charges) 1.4 (1.8) 3.2
APAC PT
Revenue from services
(including fee-based income) $ 23.6 $ 18.2 29.9% 17.1%
Fee-based income 7.6 2.8 166.0 150.1
Gross profit 10.1 5.6 79.3 65.5
Total SG&A expenses 12.0 6.6 81.9 67.7
Earnings from operations (1.9) (1.0) (96.8)
Gross profit rate 42.5% 30.8% 11.7 pts.
Expense rates:
% of revenue 50.8 36.3 14.5
% of gross profit 119.6 117.8 1.8
Operating margin (8.3) (5.5) (2.8)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
September Year to Date
------------------------------------------
Constant
Currency
2010 2009 Change Change
--------- --------- -------- ---------
OCG
Revenue from services
(including fee-based income) $ 179.8 $ 151.7 18.5% 18.1%
Fee-based income 18.3 18.4 (0.5) (2.0)
Gross profit 42.4 44.2 (4.4) (5.1)
SG&A expenses excluding
restructuring charges 56.8 51.7 9.8
Restructuring charges 0.1 0.6 (87.6)
Total SG&A expenses 56.9 52.3 8.7 8.0
Earnings from operations (14.5) (8.1) (80.3)
Earnings from operations
excluding restructuring
charges (14.4) (7.5) (93.7)
Gross profit rate 23.5% 29.2% (5.7) pts.
Expense rates (excluding
restructuring charges):
% of revenue 31.6 34.1 (2.5)
% of gross profit 134.3 116.9 17.4
Operating margin (excluding
restructuring charges) (8.1) (4.9) (3.2)
Corporate Expense
SG&A expenses excluding
restructuring charges $ 54.7 $ 59.8 (8.5)%
Restructuring charges 3.6 1.1 225.2
Total SG&A expenses 58.3 60.9 (4.3)
Asset impairments - 53.1 (100.0)
Consolidated Total (excluding
intersegment activity)
Revenue from services
(including fee-based income) $ 3,624.5 $ 3,120.7 16.1% 14.6%
Fee-based income 73.0 64.6 12.8 9.5
Gross profit 578.1 513.4 12.6 11.2
SG&A expenses excluding
restructuring charges 548.2 576.9 (5.0)
Restructuring charges 7.2 16.5 (56.1)
Total SG&A expenses 555.4 593.4 (6.4) (7.6)
Asset impairments 1.5 53.1 (97.1)
Earnings from operations 21.2 (133.1) NM
Earnings from operations
excluding restructuring
charges 28.4 (116.6) NM
Gross profit rate 16.0% 16.5% (0.5) pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.1 18.5 (3.4)
% of gross profit 94.8 112.4 (17.6)
Operating margin (excluding
restructuring charges) 0.8 (3.7) 4.5
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars)
2010 2009
---------- ----------
Cash flows from operating activities
Net earnings (loss) $ 11.5 $ (96.3)
Noncash adjustments:
Impairment of assets 1.5 53.1
Depreciation and amortization 26.5 30.9
Provision for bad debts 1.0 2.7
Stock-based compensation 2.2 3.6
Other, net 1.0 (4.0)
Changes in operating assets and liabilities (43.6) 32.9
---------- ----------
Net cash from operating activities 0.1 22.9
---------- ----------
Cash flows from investing activities
Capital expenditures (5.9) (7.9)
Acquisition of companies, net of cash received - (7.5)
Other investing activities 0.5 (2.9)
---------- ----------
Net cash from investing activities (5.4) (18.3)
---------- ----------
Cash flows from financing activities
Net change in revolving line of credit (12.8) (11.9)
Repayment of debt (7.3) (22.9)
Sale of stock and other financing activities 24.3 (0.7)
---------- ----------
Net cash from financing activities 4.2 (35.5)
---------- ----------
Effect of exchange rates on cash and equivalents (0.6) 3.6
Net change in cash and equivalents (1.7) (27.3)
Cash and equivalents at beginning of period 88.9 118.3
---------- ----------
Cash and equivalents at end of period $ 87.2 $ 91.0
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
October 3, January 3, September 27,
2010 2010 2009
------------ ------------ ------------
Current Assets
Cash and equivalents $ 87.2 $ 88.9 $ 91.0
Trade accounts receivable,
less allowances of $13.0,
$15.0 and $15.7, respectively 831.3 717.9 707.3
Prepaid expenses and other
current assets 54.7 70.6 54.3
Deferred taxes 25.5 21.0 25.7
------------ ------------ ------------
Total current assets 998.7 898.4 878.3
Property and Equipment, Net 107.2 127.1 132.5
Noncurrent Deferred Taxes 80.4 77.5 66.0
Goodwill, Net 67.3 67.3 67.3
Other Assets 135.7 131.4 134.6
------------ ------------ ------------
Total Assets $ 1,389.3 $ 1,301.7 $ 1,278.7
============ ============ ============
Current Liabilities
Short-term borrowings and
current portion of
long-term debt $ 68.3 $ 79.6 $ 15.3
Accounts payable and accrued
liabilities 167.6 182.6 201.9
Accrued payroll and related
taxes 273.0 208.3 229.6
Accrued insurance 20.3 19.7 25.0
Income and other taxes 56.6 47.4 29.8
------------ ------------ ------------
Total current
liabilities 585.8 537.6 501.6
Noncurrent Liabilities
Long-term debt 52.7 57.5 66.0
Accrued insurance 48.2 47.3 43.9
Accrued retirement benefits 79.0 76.9 74.0
Other long-term liabilities 15.3 16.0 14.2
------------ ------------ ------------
Total noncurrent
liabilities 195.2 197.7 198.1
Stockholders' Equity
Common stock 40.1 40.1 40.1
Treasury stock (71.2) (107.2) (107.6)
Paid-in capital 27.5 36.9 35.9
Earnings invested in the
business 583.0 571.5 579.7
Accumulated other
comprehensive income 28.9 25.1 30.9
------------ ------------ ------------
Total stockholders'
equity 608.3 566.4 579.0
------------ ------------ ------------
Total Liabilities and
Stockholders' Equity $ 1,389.3 $ 1,301.7 $ 1,278.7
============ ============ ============
STATISTICS:
Working Capital $ 412.9 $ 360.8 $ 376.7
Current Ratio 1.7 1.7 1.8
Debt-to-capital % 16.6% 19.5% 12.3%
Global Days Sales Outstanding 52 51 52
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Third Quarter (Commercial, PT and OCG)
-----------------------------------------------
% Change
Constant
2010 2009 US$ Currency
----------- ----------- ---------- ----------
Americas
United States $ 811.3 $ 623.1 30.2% 30.2%
Canada 56.7 48.4 17.3 10.8
Mexico 25.2 16.7 50.7 45.4
Puerto Rico 21.7 12.6 71.1 71.1
----------- -----------
Total Americas 914.9 700.8 30.5 30.0
EMEA
France 71.3 69.4 2.8 13.3
Switzerland 47.9 38.8 23.8 19.7
United Kingdom 33.8 50.8 (33.6) (29.7)
Russia 26.8 16.5 61.8 58.0
Portugal 21.3 15.8 34.5 48.4
Germany 18.1 16.6 9.1 20.3
Norway 15.1 16.2 (6.8) (6.9)
Italy 14.7 17.4 (15.5) (6.9)
Other 20.8 26.9 (22.7) (15.6)
----------- -----------
Total EMEA 269.8 268.4 0.5 5.9
APAC
Australia 31.9 25.0 27.7 16.7
Singapore 21.7 16.4 31.7 23.7
Malaysia 16.5 12.3 34.5 20.3
India 15.5 9.9 56.6 50.2
Other 14.4 16.4 (11.6) (17.1)
----------- -----------
Total APAC 100.0 80.0 25.1 15.9
Total Kelly Services, Inc. $ 1,284.7 $ 1,049.2 22.4% 22.7%
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
September Year to Date (Commercial, PT and OCG)
-----------------------------------------------
% Change
Constant
2010 2009 US$ Currency
----------- ----------- ---------- ----------
Americas
United States $ 2,292.3 $ 1,901.2 20.6% 20.6%
Canada 162.8 131.9 23.5 9.8
Mexico 66.1 47.5 39.1 30.2
Puerto Rico 55.6 42.9 29.4 29.4
----------- -----------
Total Americas 2,576.8 2,123.5 21.3 20.3
EMEA
France 206.2 194.0 6.3 10.7
Switzerland 120.0 99.8 20.4 16.3
United Kingdom 105.6 163.6 (35.5) (35.3)
Russia 75.5 45.5 65.8 55.4
Portugal 58.8 40.1 46.7 53.5
Germany 50.6 47.5 6.7 11.3
Italy 46.1 53.9 (14.5) (11.2)
Norway 43.1 44.4 (3.0) (8.8)
Other 56.9 82.2 (30.8) (29.3)
----------- -----------
Total EMEA 762.8 771.0 (1.1) (0.3)
APAC
Australia 88.2 67.9 29.9 9.2
Singapore 60.2 46.5 29.3 21.3
Malaysia 47.4 36.4 30.2 18.6
India 44.4 24.7 79.7 69.2
Other 44.7 50.7 (11.7) (22.4)
----------- -----------
Total APAC 284.9 226.2 25.9 12.7
Total Kelly Services, Inc. $ 3,624.5 $ 3,120.7 16.1% 14.6%
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KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
September
Third Quarter Year to Date
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Pretax earnings (loss) from
operations $ 14.3 $ (28.0) $ 21.2 $ (133.1)
Restructuring charges (Note 1) 2.8 4.6 7.2 16.5
Asset impairments (Note 2) - 0.5 1.5 53.1
-------- -------- -------- --------
Earnings (loss) from operations
excluding restructuring and asset
impairment charges $ 17.1 $ (22.9) $ 29.9 $ (63.5)
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Third Quarter
---------------------------------------
2010 2009
------------------ ------------------
Amount Per Share Amount Per Share
-------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 9.6 $ 0.26 $ (14.8) $ (0.43)
Restructuring charges, net of taxes
(Note 1) 1.8 0.05 3.5 0.10
Asset impairments, net of taxes
(Note 2) - - 0.8 0.02
-------- -------- -------- --------
Earnings (loss) from continuing
operations excluding restructuring
and asset impairment charges,
net of taxes $ 11.4 $ 0.31 $ (10.5) $ (0.30)
======== ======== ======== ========
September Year to Date
---------------------------------------
2010 2009
------------------ ------------------
Amount Per Share Amount Per Share
-------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 11.5 $ 0.32 $ (96.9) $ (2.78)
Restructuring charges, net of taxes
(Note 1) 5.4 0.15 13.9 0.40
Asset impairments, net of taxes
(Note 2) 1.2 0.03 50.0 1.43
-------- --------
Earnings (loss) from continuing
operations excluding restructuring
and asset impairment charges,
net of taxes $ 18.1 $ 0.50 $ (33.0) $ (0.95)
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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 2010 financial performance 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 relate 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 2009,
restructuring costs relate primarily to global severance, lease
terminations, asset write-offs and other miscellaneous costs incurred in
connection with the reduction in the number of permanent employees and the
consolidation, sale or closure of branch locations.
(2) In 2010, the asset impairment charges relate to the write-off of
incomplete software projects in Europe. In 2009, the asset impairment
charges included 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 and
Europe.
Contact Information: ANALYST CONTACT: James Polehna (248) 244-4586 james_polehna@kellyservices.com MEDIA CONTACT: Jane Stehney (248) 244-5630 jane_stehney@kellyservices.com