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 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 JANUARY 2, 2011 AND 14 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
----------- ----------- ----------- -----------
Revenue from services $ 1,325.8 $ 1,194.1 $ 131.7 11.0%
Cost of services 1,109.4 1,005.8 103.6 10.3
----------- ----------- ----------- -----------
Gross profit 216.4 188.3 28.1 15.0
Selling, general and
administrative expenses 199.0 201.3 (2.3) (1.1)
Asset impairments 0.5 - 0.5 NM
----------- ----------- ----------- -----------
Earnings (loss) from
operations 16.9 (13.0) 29.9 NM
Other expense, net (0.7) (0.9) 0.2 14.6
----------- ----------- ----------- -----------
Earnings (loss) from
continuing operations
before taxes 16.2 (13.9) 30.1 NM
Income taxes 1.6 (5.7) 7.3 127.2
----------- ----------- ----------- -----------
Earnings (loss) from
continuing operations 14.6 (8.2) 22.8 NM
Earnings from discontinued
operations, net of tax - - - NM
----------- ----------- ----------- -----------
Net earnings (loss) $ 14.6 $ (8.2) $ 22.8 NM%
=========== =========== =========== ===========
Basic earnings (loss)
per share on common
stock
Earnings (loss) from
continuing
operations $ 0.39 $ (0.23) $ 0.62 NM%
Earnings from
discontinued
operations - - - NM
Net earnings (loss) 0.39 (0.23) 0.62 NM
Diluted Earnings (loss)
per share on common
stock
Earnings (loss) from
continuing
operations $ 0.39 $ (0.23) $ 0.62 NM%
Earnings from
discontinued
operations - - - NM
Net earnings (loss) 0.39 (0.23) 0.62 NM
--------------------------------------------------------------------------
STATISTICS:
Gross profit rate 16.3% 15.8% 0.5 pts.
Selling, general and
administrative
expenses:
% of revenue 15.0 16.8 (1.8)
% of gross profit 92.0 106.9 (14.9)
% Return - Earnings (loss)
from operations 1.3 (1.1) 2.4
Earnings (loss)
from continuing
operations
before taxes 1.2 (1.2) 2.4
Earnings (loss)
from
continuing
operations 1.1 (0.7) 1.8
Net earnings (loss) 1.1 (0.7) 1.8
Effective income tax rate 9.5% 41.0% (31.5) 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 52 WEEKS ENDED JANUARY 2, 2011 AND 53 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
---------- ---------- ---------- ----------
Revenue from services $ 4,950.3 $ 4,314.8 $ 635.5 14.7%
Cost of services 4,155.8 3,613.1 542.7 15.0
---------- ---------- ---------- ----------
Gross profit 794.5 701.7 92.8 13.2
Selling, general and
administrative
expenses 754.4 794.7 (40.3) (5.1)
Asset impairments 2.0 53.1 (51.1) (96.2)
---------- ---------- ---------- ----------
Earnings (loss) from
operations 38.1 (146.1) 184.2 NM
Other expense, net (5.4) (2.2) (3.2) (144.7)
---------- ---------- ---------- ----------
Earnings (loss) from
continuing operations
before taxes 32.7 (148.3) 181.0 NM
Income taxes 6.6 (43.2) 49.8 115.3
---------- ---------- ---------- ----------
Earnings (loss) from
continuing operations 26.1 (105.1) 131.2 NM
Earnings from discontinued
operations, net of tax - 0.6 (0.6) (100.0)
---------- ---------- ---------- ----------
Net earnings (loss) $ 26.1 $ (104.5) $ 130.6 NM%
========== ========== ========== ==========
Basic earnings (loss) per
share on common stock
Earnings (loss) from
continuing operations $ 0.71 $ (3.01) $ 3.72 NM%
Earnings from discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.71 (3.00) 3.71 NM
Diluted Earnings (loss) per
share on common stock
Earnings (loss) from
continuing operations $ 0.71 $ (3.01) $ 3.72 NM%
Earnings from discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.71 (3.00) 3.71 NM
--------------------------------------------------------------------------
STATISTICS:
Gross profit rate 16.0% 16.3% (0.3) pts.
Selling, general and
administrative expenses:
% of revenue 15.2 18.4 (3.2)
% of gross profit 94.9 113.2 (18.3)
% Return - Earnings (loss)
from operations 0.8 (3.4) 4.2
Earnings (loss) from
continuing operations
before taxes 0.7 (3.4) 4.1
Earnings (loss) from
continuing operations 0.5 (2.4) 2.9
Net earnings (loss) 0.5 (2.4) 2.9
Effective income tax rate 20.2% 29.1% (8.9) pts.
Average number of shares
outstanding (millions):
Basic 36.1 34.9
Diluted 36.1 34.9
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
---------------------------------------------
Constant
2010 2009 Currency
(13 Weeks) (14 Weeks) Change Change
---------- ---------- --------- ----------
Americas Commercial
Revenue from services
(including fee-based
income) $ 646.3 $ 557.4 16.0% 15.3%
Fee-based income 2.3 1.5 49.9 48.6
Gross profit 98.4 79.8 23.3 22.6
SG&A expenses excluding
restructuring charges 73.4 67.9 8.2
Restructuring charges - 3.5 (100.0)
Total SG&A expenses 73.4 71.4 2.9 2.4
Earnings from operations 25.0 8.4 194.8
Earnings from operations
excluding restructuring
charges 25.0 11.9 108.3
Gross profit rate 15.2% 14.3% 0.9 pts.
Expense rates (excluding
restructuring charges):
% of revenue 11.4 12.2 (0.8)
% of gross profit 74.6 85.0 (10.4)
Operating margin
(excluding restructuring
charges) 3.9 2.2 1.7
Americas PT
Revenue from services
(including fee-based
income) $ 229.9 $ 208.3 10.4% 10.3%
Fee-based income 2.3 2.2 4.8 4.6
Gross profit 36.8 31.9 15.2 15.1
SG&A expenses excluding
restructuring charges 24.5 24.7 (0.8)
Restructuring charges - 0.8 (100.0)
Total SG&A expenses 24.5 25.5 (3.9) (4.0)
Earnings from operations 12.3 6.4 92.0
Earnings from operations
excluding restructuring
charges 12.3 7.2 70.5
Gross profit rate 16.0% 15.3% 0.7 pts.
Expense rates (excluding
restructuring charges):
% of revenue 10.7 11.9 (1.2)
% of gross profit 66.8 77.5 (10.7)
Operating margin
(excluding restructuring
charges) 5.3 3.4 1.9
EMEA Commercial
Revenue from services
(including fee-based
income) $ 229.2 $ 238.9 (4.0)% 0.6%
Fee-based income 4.7 4.3 9.9 14.8
Gross profit 37.2 37.4 (0.6) 4.4
SG&A expenses excluding
restructuring charges 34.8 35.2 (1.4)
Restructuring charges - 4.9 (100.0)
Total SG&A expenses 34.8 40.1 (13.3) (9.7)
Earnings from operations 2.4 (2.7) NM
Earnings from operations
excluding restructuring
charges 2.4 2.2 12.8
Gross profit rate 16.2% 15.7% 0.5 pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.2 14.8 0.4
% of gross profit 93.5 94.2 (0.7)
Operating margin
(excluding restructuring
charges) 1.1 0.9 0.2
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
---------------------------------------------
Constant
2010 2009 Currency
(13 Weeks) (14 Weeks) Change Change
---------- ---------- ---------- ----------
EMEA PT
Revenue from services
(including fee-based
income) $ 41.2 $ 39.6 4.0% 9.8%
Fee-based income 3.8 3.6 5.1 10.0
Gross profit 10.4 9.8 6.9 12.7
Total SG&A expenses 9.3 10.6 (12.7) (8.6)
Earnings from operations 1.1 (0.8) NM
Gross profit rate 25.4% 24.7% 0.7 pts.
Expense rates:
% of revenue 22.5 26.8 (4.3)
% of gross profit 88.7 108.5 (19.8)
Operating margin 2.9 (2.1) 5.0
APAC Commercial
Revenue from services
(including fee-based
income) $ 102.0 $ 83.0 22.9% 14.8%
Fee-based income 2.9 2.9 0.7 (6.1)
Gross profit 12.9 12.1 6.0 (1.1)
SG&A expenses excluding
restructuring charges 13.1 11.6 13.7
Restructuring charges - 1.4 (100.0)
Total SG&A expenses 13.1 13.0 0.9 (5.7)
Earnings from operations (0.2) (0.9) 72.3
Earnings from operations
excluding restructuring
charges (0.2) 0.5 NM
Gross profit rate 12.6% 14.6% (2.0) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.9 13.9 (1.0)
% of gross profit 101.8 95.0 6.8
Operating margin
(excluding restructuring
charges) (0.2) 0.7 (0.9)
APAC PT
Revenue from services
(including fee-based
income) $ 8.9 $ 7.2 23.8% 16.2%
Fee-based income 2.9 1.0 189.7 174.1
Gross profit 3.8 2.1 86.7 76.1
Total SG&A expenses 5.0 2.6 93.3 82.8
Earnings from operations (1.2) (0.5) (119.4)
Gross profit rate 43.2% 28.6% 14.6 pts.
Expense rates:
% of revenue 55.9 35.8 20.1
% of gross profit 129.6 125.2 4.4
Operating margin (12.8) (7.2) (5.6)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
--------------------------------------------
Constant
2010 2009 Currency
(13 Weeks) (14 Weeks) Change Change
---------- ---------- --------- ---------
OCG
Revenue from services
(including fee-based
income) $ 75.0 $ 68.2 9.9% 10.1%
Fee-based income 7.3 6.0 21.4 21.7
Gross profit 17.6 15.5 13.5 14.1
SG&A expenses excluding
restructuring charges 20.7 17.9 15.8
Restructuring charges - 1.3 (100.0)
Total SG&A expenses 20.7 19.2 8.2 8.5
Earnings from operations (3.1) (3.7) 14.0
Earnings from operations
excluding restructuring
charges (3.1) (2.4) (30.6)
Gross profit rate 23.4% 22.7% 0.7 pts.
Expense rates (excluding
restructuring charges):
% of revenue 27.6 26.2 1.4
% of gross profit 118.0 115.7 2.3
Operating margin (excluding
restructuring charges) (4.2) (3.6) (0.6)
Corporate Expense
SG&A expenses excluding
restructuring charges $ 18.9 $ 17.7 6.7%
Restructuring charges - 1.5 (100.0)
Total SG&A expenses 18.9 19.2 (1.7)
Asset impairments 0.5 - NM
Consolidated Total (net of
intersegment activity)
Revenue from services
(including fee-based
income) $ 1,325.8 $ 1,194.1 11.0% 11.3%
Fee-based income 26.0 21.5 21.7 21.8
Gross profit 216.4 188.3 15.0 15.4
SG&A expenses excluding
restructuring charges 199.0 187.9 6.0
Restructuring charges - 13.4 (100.0)
Total SG&A expenses 199.0 201.3 (1.1) (0.9)
Asset impairments 0.5 - NM
Earnings from operations 16.9 (13.0) NM
Earnings from operations
excluding restructuring
charges 16.9 0.4 NM
Gross profit rate 16.3% 15.8% 0.5 pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.0 15.7 (0.7)
% of gross profit 92.0 99.8 (7.8)
Operating margin (excluding
restructuring charges) 1.3 0.0 1.3
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
------------------------------------------
Constant
2010 2009 Currency
(52 Weeks) (53 Weeks) Change Change
--------- --------- ---------- -------
Americas Commercial
Revenue from services
(including fee-based
income) $ 2,428.2 $ 1,980.3 22.6 % 21.4 %
Fee-based income 8.8 6.6 31.8 29.0
Gross profit 354.9 290.7 22.0 21.0
SG&A expenses excluding
restructuring charges 275.3 273.2 0.7
Restructuring charges 0.3 7.2 (95.0)
Total SG&A expenses 275.6 280.4 (1.7) (2.6)
Earnings from operations 79.3 10.3 NM
Earnings from operations
excluding restructuring
charges 79.6 17.5 352.7
Gross profit rate 14.6% 14.7% (0.1) pts.
Expense rates (excluding
restructuring charges):
% of revenue 11.3 13.8 (2.5)
% of gross profit 77.5 93.9 (16.4)
Operating margin (excluding
restructuring charges) 3.3 0.9 2.4
Americas PT
Revenue from services
(including fee-based
income) $ 889.0 $ 792.6 12.2 % 12.0 %
Fee-based income 9.0 9.4 (4.5) (4.9)
Gross profit 140.0 125.1 12.0 11.8
SG&A expenses excluding
restructuring charges 93.7 100.9 (7.0)
Restructuring charges - 1.0 (100.0)
Total SG&A expenses 93.7 101.9 (8.0) (8.2)
Earnings from operations 46.3 23.2 100.1
Earnings from operations
excluding restructuring
charges 46.3 24.2 91.4
Gross profit rate 15.8% 15.8% - pts.
Expense rates (excluding
restructuring charges):
% of revenue 10.5 12.7 (2.2)
% of gross profit 67.0 80.7 (13.7)
Operating margin (excluding
restructuring charges) 5.2 3.0 2.2
EMEA Commercial
Revenue from services
(including fee-based
income) $ 872.0 $ 895.2 (2.6)% (0.9)%
Fee-based income 19.1 16.6 15.9 16.0
Gross profit 141.0 140.2 0.6 2.3
SG&A expenses excluding
restructuring charges 130.5 150.3 (13.2)
Restructuring charges 2.7 15.6 (82.8)
Total SG&A expenses 133.2 165.9 (19.7) (18.9)
Asset impairments 1.5 - NM
Earnings from operations 6.3 (25.7) NM
Earnings from operations
excluding restructuring
charges 9.0 (10.1) NM
Gross profit rate 16.2% 15.7% 0.5 pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.0 16.8 (1.8)
% of gross profit 92.6 107.2 (14.6)
Operating margin (excluding
restructuring charges) 1.0 (1.1) 2.1
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
December Year to Date
--------------------------------------------
Constant
2010 2009 Currency
(52 Weeks) (53 Weeks) Change Change
---------- ---------- ---------- --------
EMEA PT
Revenue from services
(including fee-based
income) $ 147.6 $ 141.9 4.0% 6.7%
Fee-based income 15.0 15.7 (4.3) (4.1)
Gross profit 38.7 37.8 2.9 4.8
Total SG&A expenses 36.9 40.6 (9.3) (8.2)
Earnings from operations 1.8 (2.8) NM
Gross profit rate 26.3% 26.6% (0.3) pts.
Expense rates:
% of revenue 25.0 28.6 (3.6)
% of gross profit 94.8 107.6 (12.8)
Operating margin 1.4 (2.0) 3.4
APAC Commercial
Revenue from services
(including fee-based
income) $ 355.3 $ 284.9 24.7% 12.9%
Fee-based income 11.4 9.7 16.6 5.6
Gross profit 48.4 41.6 16.2 4.6
SG&A expenses excluding
restructuring charges 45.1 44.6 1.3
Restructuring charges 0.5 1.6 (66.5)
Total SG&A expenses 45.6 46.2 (1.0) (10.7)
Earnings from operations 2.8 (4.6) NM
Earnings from operations
excluding restructuring
charges 3.3 (3.0) NM
Gross profit rate 13.6% 14.6% (1.0) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.7 15.6 (2.9)
% of gross profit 93.3 107.0 (13.7)
Operating margin (excluding
restructuring charges) 0.9 (1.0) 1.9
APAC PT
Revenue from services
(including fee-based
income) $ 32.5 $ 25.4 28.2% 16.8%
Fee-based income 10.5 3.8 172.1 156.3
Gross profit 13.9 7.7 81.3 68.3
Total SG&A expenses 17.0 9.2 85.1 72.0
Earnings from operations (3.1) (1.5) (104.5)
Gross profit rate 42.7% 30.2% 12.5 pts.
Expense rates:
% of revenue 52.2 36.2 16.0
% of gross profit 122.3 119.8 2.5
Operating margin (9.5) (6.0) (3.5)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
December Year to Date
-------------------------------------------
Constant
2010 2009 Currency
(52 Weeks) (53 Weeks) Change Change
--------- --------- ---------- --------
OCG
Revenue from services
(including fee-based
income) $ 254.8 $ 219.9 15.8 % 15.6%
Fee-based income 25.6 24.4 4.9 3.9
Gross profit 60.0 59.7 0.2 (0.1)
SG&A expenses excluding
restructuring charges 77.5 69.6 11.3
Restructuring charges 0.1 1.9 (96.0)
Total SG&A expenses 77.6 71.5 8.5 8.1
Earnings from operations (17.6) (11.8) (50.8)
Earnings from operations
excluding restructuring
charges (17.5) (9.9) (78.3)
Gross profit rate 23.5% 27.2% (3.7) pts.
Expense rates (excluding
restructuring charges):
% of revenue 30.4 31.7 (1.3)
% of gross profit 129.5 116.6 12.9
Operating margin (excluding
restructuring charges) (6.9) (4.5) (2.4)
Corporate Expense
SG&A expenses excluding
restructuring charges $ 73.6 $ 77.5 (5.1)%
Restructuring charges 3.6 2.6 37.4
Total SG&A expenses 77.2 80.1 (3.7)
Asset impairments 0.5 53.1 (99.1)
Consolidated Total (net of
intersegment activity)
Revenue from services
(including fee-based
income) $ 4,950.3 $ 4,314.8 14.7 % 13.7%
Fee-based income 99.0 86.1 15.0 12.6
Gross profit 794.5 701.7 13.2 12.3
SG&A expenses excluding
restructuring charges 747.2 764.8 (2.3)
Restructuring charges 7.2 29.9 (75.8)
Total SG&A expenses 754.4 794.7 (5.1) (5.9)
Asset impairments 2.0 53.1 (96.2)
Earnings from operations 38.1 (146.1) NM
Earnings from operations
excluding restructuring
charges 45.3 (116.2) NM
Gross profit rate 16.0% 16.3% (0.3) pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.1 17.7 (2.6)
% of gross profit 94.0 109.0 (15.0)
Operating margin (excluding
restructuring charges) 0.9 (2.7) 3.6
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
January 2, January 3,
2011 2010
--------- ---------
Current Assets
Cash and equivalents $ 80.5 $ 88.9
Trade accounts receivable, less allowances of
$12.3 and $15.0, respectively 810.9 717.9
Prepaid expenses and other current assets 44.8 70.6
Deferred taxes 22.4 21.0
--------- ---------
Total current assets 958.6 898.4
Property and Equipment, Net 104.0 127.1
Noncurrent Deferred Taxes 84.0 77.5
Goodwill, Net 67.3 67.3
Other Assets 154.5 142.2
--------- ---------
Total Assets $ 1,368.4 $ 1,312.5
========= =========
Current Liabilities
Short-term borrowings and current portion of
long-term debt $ 78.8 $ 79.6
Accounts payable and accrued liabilities 181.6 182.6
Accrued payroll and related taxes 243.3 208.3
Accrued insurance 31.3 22.9
Income and other taxes 56.0 47.4
--------- ---------
Total current liabilities 591.0 540.8
Noncurrent Liabilities
Long-term debt - 57.5
Accrued insurance 53.6 54.9
Accrued retirement benefits 85.4 76.9
Other long-term liabilities 14.6 16.0
--------- ---------
Total noncurrent liabilities 153.6 205.3
Stockholders' Equity
Common stock 40.1 40.1
Treasury stock (70.9) (107.2)
Paid-in capital 28.0 36.9
Earnings invested in the business 597.6 571.5
Accumulated other comprehensive income 29.0 25.1
--------- ---------
Total stockholders' equity 623.8 566.4
--------- ---------
Total Liabilities and Stockholders' Equity $ 1,368.4 $ 1,312.5
========= =========
--------------------------------------------------------------------------
STATISTICS:
Working Capital $ 367.6 $ 357.6
Current Ratio 1.6 1.7
Debt-to-capital % 11.2% 19.5%
Global Days Sales Outstanding 49 51
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED JANUARY 2, 2011 AND 53 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars)
2010 2009
-------- --------
Cash flows from operating activities
Net earnings (loss) $ 26.1 $ (104.5)
Noncash adjustments:
Impairment of assets 2.0 53.1
Depreciation and amortization 34.9 40.9
Provision for bad debts 2.1 2.2
Stock-based compensation 3.2 5.1
Other, net 0.5 (2.2)
Changes in operating assets and liabilities (27.0) (22.0)
-------- --------
Net cash from operating activities 41.8 (27.4)
-------- --------
Cash flows from investing activities
Capital expenditures (11.0) (13.1)
Acquisition of companies, net of cash received - (7.5)
Other investing activities (0.3) (2.8)
Net cash from investing activities (11.3) (23.4)
-------- --------
Cash flows from financing activities
Net change in short-term borrowings (44.8) 52.7
Repayment of debt (14.9) (30.5)
Sale of stock and other financing activities 24.4 (2.6)
-------- --------
Net cash from financing activities (35.3) 19.6
-------- --------
Effect of exchange rates on cash and equivalents (3.6) 1.8
-------- --------
Net change in cash and equivalents (8.4) (29.4)
Cash and equivalents at beginning of period 88.9 118.3
-------- --------
Cash and equivalents at end of period $ 80.5 $ 88.9
======== ========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Fourth Quarter (Commercial, PT and OCG)
--------------------------------------
% Change
2010 2009 Constant
(13 Weeks) (14 Weeks) US$ Currency
--------- --------- -------- --------
Americas
United States $ 829.6 $ 733.1 13.2% 13.2%
Canada 56.2 51.5 8.9 4.4
Mexico 27.6 19.0 45.2 37.4
Puerto Rico 22.6 15.0 51.5 51.5
--------- ---------
Total Americas 936.0 818.6 14.4 13.9
EMEA
France 72.2 78.7 (8.2) (0.0)
Switzerland 50.7 38.8 30.5 24.5
United Kingdom 28.5 43.1 (33.9) (31.6)
Russia 28.1 19.9 41.3 47.4
Portugal 21.8 19.4 12.5 22.5
Germany 19.2 17.6 8.3 17.9
Italy 17.2 19.0 (9.5) (1.3)
Norway 14.3 17.3 (17.3) (13.6)
Other 23.8 29.0 (17.7) (11.4)
--------- ---------
Total EMEA 275.8 282.8 (2.5) 2.4
APAC
Australia 40.6 30.4 33.8 23.2
Singapore 24.1 17.9 34.6 25.7
Malaysia 15.9 13.7 15.9 6.1
India 17.0 11.9 43.1 37.8
Other 16.4 18.8 (13.1) (16.6)
--------- ---------
Total APAC 114.0 92.7 23.0 14.9
Total Kelly Services, Inc. $ 1,325.8 $ 1,194.1 11.0% 11.3%
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
December Year to Date
(Commercial, PT and OCG)
--------------------------------------
% Change
2010 2009 Constant
(52 Weeks) (53 Weeks) US$ Currency
--------- --------- -------- --------
Americas
United States $ 3,121.9 $ 2,634.3 18.5% 18.5%
Canada 219.0 183.4 19.4 8.3
Mexico 93.7 66.5 40.8 32.2
Puerto Rico 78.2 57.9 35.1 35.1
--------- ---------
Total Americas 3,512.8 2,942.1 19.4 18.5
EMEA
France 278.4 272.7 2.1 7.6
Switzerland 170.7 138.6 23.2 18.6
United Kingdom 134.1 206.7 (35.1) (34.5)
Russia 103.6 65.4 58.4 53.0
Portugal 80.6 59.5 35.5 43.4
Germany 69.8 65.1 7.1 13.1
Italy 63.3 72.9 (13.2) (8.6)
Norway 57.4 61.7 (7.0) (10.2)
Other 80.7 111.2 (27.4) (24.6)
--------- ---------
Total EMEA 1,038.6 1,053.8 (1.4) 0.4
APAC
Australia 128.8 98.3 31.1 13.5
Singapore 84.3 64.4 30.8 22.5
Malaysia 63.3 50.1 26.3 15.2
India 61.4 36.6 67.8 59.0
Other 61.1 69.5 (12.1) (20.8)
--------- ---------
Total APAC 398.9 318.9 25.1 13.3
Total Kelly Services, Inc. $ 4,950.3 $ 4,314.8 14.7% 13.7%
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
December Year
Fourth Quarter to Date
------------------ ------------------
2010 2009 2010 2009
--------- -------- -------- --------
Pretax earnings (loss) from
operations $ 16.9 $ (13.0) $ 38.1 $ (146.1)
Restructuring charges (Note 1) - 13.4 7.2 29.9
Goodwill and related impairment
charges (Note 2) - - - 53.1
--------- -------- -------- --------
Earnings (loss) from operations
excluding restructuring and
goodwill and related impairment
charges $ 16.9 $ 0.4 $ 45.3 $ (63.1)
========= ======== ======== ========
Fourth Quarter
--------------------------------------
2010 2009
------------------ ------------------
Amount Per Share Amount Per Share
--------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 14.6 $ 0.39 $ (8.2) $ (0.23)
Restructuring charges, net of
taxes (Note 1) - - 10.1 0.29
--------- --------
Earnings from continuing operations
excluding restructuring charges,
net of taxes $ 14.6 $ 0.39 $ 1.9 $ 0.05
========= ======== ======== ========
December Year to Date
--------------------------------------
2010 2009
------------------ ------------------
Amount Per Share Amount Per Share
--------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 26.1 $ 0.71 $ (105.1) $ (3.01)
Restructuring charges, net of
taxes (Note 1) 5.4 0.15 24.0 0.69
Goodwill and related impairment
charges, net of taxes (Note 2) - - 50.0 1.43
--------- --------
Earnings (loss) from continuing
operations excluding restructuring
and goodwill and related
impairment charges, net of taxes $ 31.5 $ 0.86 $ (31.1) $ (0.89)
========= ======== ======== ========
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 2009, the goodwill and related 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