SOURCE: Kelly Services, Inc.

Kelly Services, Inc.

February 02, 2012 07:30 ET

Kelly Services® Reports 4th Quarter and Full Year 2011 Results

TROY, MI--(Marketwire - Feb 2, 2012) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the fourth quarter and full year 2011.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2011 totaled $1.4 billion, a 5% increase compared to the corresponding quarter in 2010. Revenue for the full year totaled $5.6 billion, a 12% increase compared to the prior year.

Net earnings for the fourth quarter of 2011 totaled $24.1 million, compared to $14.6 million reported for the fourth quarter of 2010.

Net earnings for the full year of 2011 totaled $63.7 million compared to $26.1 million in 2010.

Diluted earnings per share from continuing operations in the fourth quarter of 2011 were $0.64 compared to $0.39 per share in the fourth quarter 2010.

Diluted earnings per share from continuing operations for the full year of 2011 were $1.72 compared to $0.71 per share in 2010.

Commenting on the fourth quarter and full year results, Camden stated, "Despite unsettled global economic conditions, we're pleased to report a successful quarter and year. Our performance was fueled by a sustained demand for flexible staffing, improvements in the overall job market, and our own drive to achieve operational excellence."

Camden stressed that Kelly® remains focused on building shareholder value and delivering a competitive profit. "We will concentrate on providing customized solutions and offering a continuum of services through our outsourcing and consulting business, as well as meeting demand for highly skilled professional and technical workers."

Looking ahead to 2012, Camden believes Kelly is in a strong position. "We've created a flexible, efficient business model that should serve us well going forward," he said, adding that the Company is adamant about maintaining its cost-containment plan. "That diligence, along with engaging the best talent in the business, will keep us on track for continued growth."

In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on February 2, 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 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 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 550,000 employees annually. Revenue in 2011 was $5.6 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 JANUARY 1, 2012 AND JANUARY 2, 2011
(UNAUDITED)
(In millions of dollars except per share data)
2011 2010 Change % Change
Revenue from services $ 1,396.3 $ 1,325.8 $ 70.5 5.3 %
Cost of services 1,169.1 1,109.4 59.7 5.4
Gross profit 227.2 216.4 10.8 5.0
Selling, general and administrative expenses 214.5 199.0 15.5 7.8
Asset impairments - 0.5 (0.5 ) (100.0 )
Earnings from operations 12.7 16.9 (4.2 ) (24.9 )
Other income (expense), net - (0.7 ) 0.7 105.7
Earnings from continuing operations before taxes 12.7 16.2 (3.5 ) (21.0 )
Income taxes (11.4 ) 1.6 (13.0 ) NM
Earnings from continuing operations 24.1 14.6 9.5 65.2
Earnings from discontinued operations, net of tax - - - NM
Net earnings $ 24.1 $ 14.6 $ 9.5 65.2 %
Basic earnings per share on common stock
Earnings from continuing operations $ 0.64 $ 0.39 $ 0.25 64.1 %
Earnings from discontinued operations - - - NM
Net earnings 0.64 0.39 0.25 64.1
Diluted earnings per share on common stock
Earnings from continuing operations $ 0.64 $ 0.39 $ 0.25 64.1 %
Earnings from discontinued operations - - - NM
Net earnings 0.64 0.39 0.25 64.1
STATISTICS:
Gross profit rate 16.3 % 16.3 % 0.0 pts.
Selling, general and administrative expenses:
% of revenue 15.4 15.0 0.4
% of gross profit 94.4 92.0 2.4
% Return:
Earnings from operations 0.9 1.3 (0.4 )
Earnings from continuing operations before taxes 0.9 1.2 (0.3 )
Earnings from continuing operations 1.7 1.1 0.6
Net earnings 1.7 1.1 0.6
Effective income tax rate (89.2 )% 9.5 % (98.7 ) pts.
Average number of shares outstanding (millions):
Basic 36.8 36.7
Diluted 36.8 36.7
Shares adjusted for nonvested restricted awards (millions):
Basic 37.8 37.2
Diluted 37.8 37.2
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 52 WEEKS ENDED JANUARY 1, 2012 AND JANUARY 2, 2011
(UNAUDITED)
(In millions of dollars except per share data)
2011 2010 Change % Change
Revenue from services $ 5,551.0 $ 4,950.3 $ 600.7 12.1 %
Cost of services 4,656.9 4,155.8 501.1 12.1
Gross profit 894.1 794.5 99.6 12.5
Selling, general and administrative expenses 836.4 754.4 82.0 10.9
Asset impairments - 2.0 (2.0 ) (100.0 )
Earnings from operations 57.7 38.1 19.6 51.4
Other expense, net (0.1 ) (5.4 ) 5.3 98.5
Earnings from continuing operations before taxes 57.6 32.7 24.9 76.3
Income taxes (7.3 ) 6.6 (13.9 ) (210.3 )
Earnings from continuing operations 64.9 26.1 38.8 148.7
Loss from discontinued operations, net of tax (1.2 ) - (1.2 ) NM
Net earnings $ 63.7 $ 26.1 $ 37.6 144.2 %
Basic earnings per share on common stock
Earnings from continuing operations $ 1.72 $ 0.71 $ 1.01 142.3 %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 1.69 0.71 0.98 138.0
Diluted earnings per share on common stock
Earnings from continuing operations $ 1.72 $ 0.71 $ 1.01 142.3 %
Loss from discontinued operations (0.03 ) - (0.03 ) NM
Net earnings 1.69 0.71 0.98 138.0
STATISTICS:
Gross profit rate 16.1 % 16.0 % 0.1 pts.
Selling, general and administrative expenses:
% of revenue 15.1 15.2 (0.1 )
% of gross profit 93.5 94.9 (1.4 )
% Return:
Earnings from operations 1.0 0.8 0.2
Earnings from continuing operations before taxes 1.0 0.7 0.3
Earnings from continuing operations 1.2 0.5 0.7
Net earnings 1.1 0.5 0.6
Effective income tax rate (12.6 )% 20.2 % (32.8 ) pts.
Average number of shares outstanding (millions):
Basic 36.8 36.1
Diluted 36.8 36.1
Shares adjusted for nonvested restricted awards (millions):
Basic 37.6 36.5
Diluted 37.6 36.5
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
Constant
Currency
2011 2010 Change Change
Americas Commercial
Revenue from services (including fee-based income) $ 675.6 $ 646.3 4.5 % 5.0 %
Fee-based income 3.2 2.3 41.2 41.8
Gross profit 96.9 98.4 (1.5 ) (1.1 )
Total SG&A expenses 74.5 73.4 1.4 1.8
Earnings from operations 22.4 25.0 (10.2 )
Gross profit rate 14.3 % 15.2 % (0.9 ) pts.
Expense rates:
% of revenue 11.0 11.4 (0.4 )
% of gross profit 76.9 74.6 2.3
Operating margin 3.3 3.9 (0.6 )
Americas PT
Revenue from services (including fee-based income) $ 243.7 $ 229.9 6.0 % 6.2 %
Fee-based income 3.6 2.3 57.3 57.4
Gross profit 38.1 36.8 3.7 3.8
Total SG&A expenses 26.2 24.5 6.9 7.0
Earnings from operations 11.9 12.3 (2.9 )
Gross profit rate 15.6 % 16.0 % (0.4 ) pts.
Expense rates:
% of revenue 10.8 10.7 0.1
% of gross profit 68.9 66.8 2.1
Operating margin 4.9 5.3 (0.4 )
EMEA Commercial
Revenue from services (including fee-based income) $ 238.8 $ 229.2 4.2 % 3.2 %
Fee-based income 6.0 4.7 25.9 26.1
Gross profit 38.8 37.2 4.2 3.3
Total SG&A expenses 36.1 34.8 3.8 2.7
Earnings from operations 2.7 2.4 10.7
Gross profit rate 16.2 % 16.2 % - pts.
Expense rates:
% of revenue 15.1 15.2 (0.1 )
% of gross profit 93.0 93.5 (0.5 )
Operating margin 1.1 1.1 -
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
Constant
Currency
2011 2010 Change Change
EMEA PT
Revenue from services (including fee-based income) $ 44.9 $ 41.2 8.9 % 8.1 %
Fee-based income 4.2 3.8 11.0 11.1
Gross profit 11.3 10.4 8.7 8.3
Total SG&A expenses 10.4 9.3 12.9 11.9
Earnings from operations 0.9 1.1 (24.3 )
Gross profit rate 25.3 % 25.4 % (0.1 ) pts.
Expense rates:
% of revenue 23.3 22.5 0.8
% of gross profit 92.1 88.7 3.4
Operating margin 2.0 2.9 (0.9 )
APAC Commercial
Revenue from services (including fee-based income) $ 93.8 $ 102.0 (8.0 )% (7.7 )%
Fee-based income 2.9 2.9 0.9 1.8
Gross profit 13.2 12.9 2.6 2.5
Total SG&A expenses 12.5 13.1 (4.5 ) (4.8 )
Earnings from operations 0.7 (0.2 ) NM
Gross profit rate 14.1 % 12.6 % 1.5 pts.
Expense rates:
% of revenue 13.4 12.9 0.5
% of gross profit 94.7 101.8 (7.1 )
Operating margin 0.7 (0.2 ) 0.9
APAC PT
Revenue from services (including fee-based income) $ 12.3 $ 8.9 38.4 % 40.3 %
Fee-based income 3.1 2.9 7.2 5.4
Gross profit 4.4 3.8 13.9 12.9
Total SG&A expenses 5.4 5.0 8.2 7.4
Earnings from operations (1.0 ) (1.2 ) 11.2
Gross profit rate 35.5 % 43.2 % (7.7 ) pts.
Expense rates:
% of revenue 43.7 55.9 (12.2 )
% of gross profit 123.0 129.6 (6.6 )
Operating margin (8.2 ) (12.8 ) 4.6
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
Constant
Currency
2011 2010 Change Change
OCG
Revenue from services (including fee-based income) $ 94.4 $ 75.0 25.9 % 25.9 %
Fee-based income 10.8 7.3 47.7 47.2
Gross profit 25.2 17.6 43.3 43.3
Total SG&A expenses 24.4 20.7 17.5 17.1
Earnings from operations 0.8 (3.1 ) NM
Gross profit rate 26.7 % 23.4 % 3.3 pts.
Expense rates:
% of revenue 25.8 27.6 (1.8 )
% of gross profit 96.8 118.0 (21.2 )
Operating margin 0.9 (4.2 ) 5.1
Corporate Expense
Total SG&A expenses $ 25.7 $ 18.9 36.1 %
Asset impairments - 0.5 (100.0 )
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income) $ 1,396.3 $ 1,325.8 5.3 % 5.4 %
Fee-based income 33.8 26.0 29.2 29.1
Gross profit 227.2 216.4 5.0 5.0
Total SG&A expenses 214.5 199.0 7.8 7.6
Asset impairments - 0.5 (100.0 )
Earnings from operations 12.7 16.9 (24.9 )
Gross profit rate 16.3 % 16.3 % - pts.
Expense rates:
% of revenue 15.4 15.0 0.4
% of gross profit 94.4 92.0 2.4
Operating margin 0.9 1.3 (0.4 )
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
Constant
Currency
2011 2010 Change Change
Americas Commercial
Revenue from services (including fee-based income) $ 2,660.9 $ 2,428.2 9.6 % 9.2 %
Fee-based income 12.0 8.8 38.1 37.0
Gross profit 377.0 354.9 6.2 5.8
SG&A expenses excluding restructuring charges 293.1 275.3 6.5
Restructuring charges - 0.3 (100.0 )
Total SG&A expenses 293.1 275.6 6.3 6.0
Earnings from operations 83.9 79.3 5.9
Earnings from operations excluding restructuring charges 83.9 79.6 5.4
Gross profit rate 14.2 % 14.6 % (0.4 ) pts.
Expense rates (excluding restructuring charges):
% of revenue 11.0 11.3 (0.3 )
% of gross profit 77.7 77.5 0.2
Operating margin (excluding restructuring charges) 3.2 3.3 (0.1 )
Americas PT
Revenue from services (including fee-based income) $ 982.8 $ 889.0 10.6 % 10.5 %
Fee-based income 13.3 9.0 48.3 48.1
Gross profit 148.2 140.0 5.9 5.8
Total SG&A expenses 105.4 93.7 12.4 12.3
Earnings from operations 42.8 46.3 (7.4 )
Gross profit rate 15.1 % 15.8 % (0.7 ) pts.
Expense rates:
% of revenue 10.7 10.5 0.2
% of gross profit 71.1 67.0 4.1
Operating margin 4.4 5.2 (0.8 )
EMEA Commercial
Revenue from services (including fee-based income) $ 990.1 $ 872.0 13.6 % 5.6 %
Fee-based income 24.9 19.1 29.7 21.5
Gross profit 160.6 141.0 13.9 5.7
SG&A expenses excluding restructuring charges 144.0 130.5 10.3
Restructuring charges 2.8 2.7 4.0
Total SG&A expenses 146.8 133.2 10.2 2.4
Asset impairments - 1.5 (100.0 )
Earnings from operations 13.8 6.3 119.1
Earnings from operations excluding restructuring charges 16.6 9.0 84.6
Gross profit rate 16.2 % 16.2 % - pts.
Expense rates (excluding restructuring charges):
% of revenue 14.5 15.0 (0.5 )
% of gross profit 89.7 92.6 (2.9 )
Operating margin (excluding restructuring charges) 1.7 1.0 0.7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
Constant
Currency
2011 2010 Change Change
EMEA PT
Revenue from services (including fee-based income) $ 178.9 $ 147.6 21.2 % 13.4 %
Fee-based income 19.2 15.0 27.3 19.7
Gross profit 47.4 38.7 22.0 14.5
Total SG&A expenses 43.2 36.9 17.4 9.4
Earnings from operations 4.2 1.8 105.3
Gross profit rate 26.5 % 26.3 % 0.2 pts.
Expense rates:
% of revenue 24.2 25.0 (0.8 )
% of gross profit 91.3 94.8 (3.5 )
Operating margin 2.3 1.4 0.9
APAC Commercial
Revenue from services (including fee-based income) $ 397.6 $ 355.3 11.9 % 4.1 %
Fee-based income 13.9 11.4 23.0 14.2
Gross profit 55.7 48.4 15.3 6.6
SG&A expenses excluding restructuring charges 53.8 45.1 19.3
Restructuring charges - 0.5 (100.0 )
Total SG&A expenses 53.8 45.6 17.9 8.8
Earnings from operations 1.9 2.8 (29.1 )
Earnings from operations excluding restructuring charges 1.9 3.3 (41.0 )
Gross profit rate 14.0 % 13.6 % 0.4 pts.
Expense rates (excluding restructuring charges):
% of revenue 13.5 12.7 0.8
% of gross profit 96.6 93.3 3.3
Operating margin (excluding restructuring charges) 0.5 0.9 (0.4 )
APAC PT
Revenue from services (including fee-based income) $ 51.4 $ 32.5 58.1 % 48.9 %
Fee-based income 15.3 10.5 47.7 37.9
Gross profit 20.6 13.9 48.4 38.4
Total SG&A expenses 23.2 17.0 37.0 27.7
Earnings from operations (2.6 ) (3.1 ) 14.1
Gross profit rate 40.1 % 42.7 % (2.6 ) pts.
Expense rates:
% of revenue 45.3 52.2 (6.9 )
% of gross profit 112.9 122.3 (9.4 )
Operating margin (5.2 ) (9.5 ) 4.3
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
Constant
Currency
2011 2010 Change Change
OCG
Revenue from services (including fee-based income) $ 317.3 $ 254.8 24.5 % 23.6 %
Fee-based income 39.5 25.6 54.3 49.8
Gross profit 87.3 60.0 45.7 43.3
SG&A expenses excluding restructuring charges 89.9 77.5 16.0
Restructuring charges - 0.1 (100.0 )
Total SG&A expenses 89.9 77.6 15.9 13.1
Earnings from operations (2.6 ) (17.6 ) 85.0
Earnings from operations excluding restructuring charges (2.6 ) (17.5 ) 84.9
Gross profit rate 27.5 % 23.5 % 4.0 pts.
Expense rates (excluding restructuring charges):
% of revenue 28.3 30.4 (2.1 )
% of gross profit 103.1 129.5 (26.4 )
Operating margin (excluding restructuring charges) (0.8 ) (6.9 ) 6.1
Corporate Expense
SG&A expenses excluding restructuring charges $ 83.7 $ 73.6 13.7 %
Restructuring charges - 3.6 (100.0 )
Total SG&A expenses 83.7 77.2 8.4
Asset impairments - 0.5 (100.0 )
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income) $ 5,551.0 $ 4,950.3 12.1 % 9.6 %
Fee-based income 138.0 99.0 39.4 33.4
Gross profit 894.1 794.5 12.5 9.6
SG&A expenses excluding restructuring charges 833.6 747.2 11.6
Restructuring charges 2.8 7.2 (61.7 )
Total SG&A expenses 836.4 754.4 10.9 7.9
Asset impairments - 2.0 (100.0 )
Earnings from operations 57.7 38.1 51.4
Earnings from operations excluding restructuring charges 60.5 45.3 33.3
Gross profit rate 16.1 % 16.0 % 0.1 pts.
Expense rates (excluding restructuring charges):
% of revenue 15.0 15.1 (0.1 )
% of gross profit 93.2 94.0 (0.8 )
Operating margin (excluding restructuring charges) 1.1 0.9 0.2
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
January 1, 2012 January 2, 2011
Current Assets
Cash and equivalents $ 81.0 $ 80.5
Trade accounts receivable, less allowances of $13.4 and $12.3, respectively 944.9 810.9
Prepaid expenses and other current assets 50.6 44.8
Deferred taxes 38.2 22.4
Total current assets 1,114.7 958.6
Property and Equipment, Net 90.6 104.0
Noncurrent Deferred Taxes 94.1 84.0
Goodwill, Net 90.2 67.3
Other Assets 152.1 154.5
Total Assets $ 1,541.7 $ 1,368.4
Current Liabilities
Short-term borrowings and current portion of long-term debt $ 96.3 $ 78.8
Accounts payable and accrued liabilities 237.2 181.6
Accrued payroll and related taxes 271.4 243.3
Accrued insurance 31.5 31.3
Income and other taxes 61.3 56.0
Total current liabilities 697.7 591.0
Noncurrent Liabilities
Accrued insurance 53.5 53.6
Accrued retirement benefits 91.1 85.4
Other long-term liabilities 23.7 14.6
Total noncurrent liabilities 168.3 153.6
Stockholders' Equity
Common stock 40.1 40.1
Treasury stock (66.9 ) (70.9 )
Paid-in capital 28.8 28.0
Earnings invested in the business 657.5 597.6
Accumulated other comprehensive income 16.2 29.0
Total stockholders' equity 675.7 623.8
Total Liabilities and Stockholders' Equity $ 1,541.7 $ 1,368.4
STATISTICS:
Working Capital $ 417.0 $ 367.6
Current Ratio 1.6 1.6
Debt-to-capital % 12.5 % 11.2 %
Global Days Sales Outstanding 52 49
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED JANUARY 1, 2012 AND JANUARY 2, 2011
(UNAUDITED)
(In millions of dollars)
2011 2010
Cash flows from operating activities
Net earnings $ 63.7 $ 26.1
Noncash adjustments:
Impairment of assets - 2.0
Depreciation and amortization 31.4 34.9
Provision for bad debts 4.3 2.1
Stock-based compensation 4.6 3.2
Other, net (2.6 ) 0.5
Changes in operating assets and liabilities (82.3 ) (27.0 )
Net cash from operating activities 19.1 41.8
Cash flows from investing activities
Capital expenditures (15.4 ) (11.0 )
Acquisition of companies, net of cash received (6.5 ) -
Settlement of forward exchange contracts 1.1 -
Other investing activities 0.1 (0.3 )
Net cash from investing activities (20.7 ) (11.3 )
Cash flows from financing activities
Net change in short-term borrowings 79.2 (44.8 )
Repayment of debt (68.3 ) (14.9 )
Dividend payments (3.8 ) -
Sale of stock and other financing activities (1.0 ) 24.4
Net cash from financing activities 6.1 (35.3 )
Effect of exchange rates on cash and equivalents (4.0 ) (3.6 )
Net change in cash and equivalents 0.5 (8.4 )
Cash and equivalents at beginning of period 80.5 88.9
Cash and equivalents at end of period $ 81.0 $ 80.5
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Fourth Quarter (Commercial, PT and OCG)
% Change
Constant
2011 2010 US$ Currency
Americas
United States $ 883.8 $ 829.6 6.5 % 6.5 %
Canada 60.9 56.2 8.4 9.4
Mexico 26.2 27.6 (5.0 ) 4.8
Puerto Rico 25.9 22.6 14.2 14.2
Total Americas 996.8 936.0 6.5 6.8
EMEA
France 71.2 72.2 (1.5 ) (0.8 )
Switzerland 62.0 50.7 22.4 14.5
Russia 33.4 28.1 18.9 20.7
United Kingdom 29.1 28.5 2.1 2.6
Portugal 21.6 21.8 (1.1 ) (0.4 )
Germany 20.1 19.2 5.0 5.7
Norway 17.8 14.3 24.4 20.8
Italy 17.7 17.2 3.3 4.0
Other 17.7 23.8 (25.9 ) (24.5 )
Total EMEA 290.6 275.8 5.4 4.4
APAC
Australia 35.1 40.6 (13.5 ) (15.7 )
Singapore 24.4 24.1 1.5 0.3
Malaysia 17.6 15.9 10.7 11.9
India 13.3 17.0 (21.5 ) (11.2 )
New Zealand 13.0 12.0 8.6 6.1
Other 5.5 4.4 23.9 23.4
Total APAC 108.9 114.0 (4.4 ) (4.0 )
Total Kelly Services, Inc. $ 1,396.3 $ 1,325.8 5.3 % 5.4 %
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
December Year to Date (Commercial, PT and OCG)
% Change
Constant
2011 2010 US$ Currency
Americas
United States $ 3,445.4 $ 3,121.9 10.4 % 10.4 %
Canada 247.7 219.0 13.1 8.6
Mexico 106.0 93.7 13.2 11.6
Puerto Rico 96.6 78.2 23.4 23.4
Total Americas 3,895.7 3,512.8 10.9 10.6
EMEA
France 295.9 278.4 6.3 1.0
Switzerland 239.8 170.7 40.5 19.0
Russia 141.8 103.6 36.9 32.2
United Kingdom 121.6 134.1 (9.3 ) (12.6 )
Portugal 87.7 80.6 8.8 3.4
Germany 82.8 69.8 18.6 12.9
Italy 71.0 63.3 12.2 6.6
Norway 68.7 57.4 19.7 10.7
Other 85.1 80.7 5.4 (0.2 )
Total EMEA 1,194.4 1,038.6 15.0 7.1
APAC
Australia 145.4 128.8 12.9 0.7
Singapore 103.0 84.3 22.2 12.8
Malaysia 72.1 63.3 13.9 8.4
India 66.4 61.4 8.2 9.7
New Zealand 50.8 42.9 18.5 8.1
Other 23.2 18.2 26.9 22.7
Total APAC 460.9 398.9 15.6 7.7
Total Kelly Services, Inc. $ 5,551.0 $ 4,950.3 12.1 % 9.6 %
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
Fourth Quarter December Year to Date
2011 2010 2011 2010
Pretax earnings from operations $ 12.7 $ 16.9 $ 57.7 $ 38.1
Restructuring charges (Note 1) - - 2.8 7.2
Asset impairment charges (Note 2) - 0.5 - 2.0
Earnings from operations excluding restructuring and asset impairment charges $ 12.7 $ 17.4 $ 60.5 $ 47.3
Fourth Quarter
2011 2010
Amount Per Share Amount Per Share
Earnings from continuing operations, net of taxes $ 24.1 $ 0.64 $ 14.6 $ 0.39
Asset impairment charges, net of taxes (Note 2) - - 0.3 0.01
Earnings from continuing operations excluding asset impairment charges, net of taxes $ 24.1 $ 0.64 $ 14.9 $ 0.40
December Year to Date
2011 2010
Amount Per Share Amount Per Share
Earnings from continuing operations, net of taxes $ 64.9 $ 1.72 $ 26.1 $ 0.71
Restructuring charges, net of taxes (Note 1) 2.8 0.07 5.4 0.15
Asset impairment charges, net of taxes (Note 2) - - 1.5 0.04
Earnings from continuing operations excluding restructuring and asset impairment charges, net of taxes $ 67.7 $ 1.80 $ 33.0 $ 0.90
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 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 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.
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (PROFORMA)
2011 DECEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)
Corp Exp
Americas EMEA APAC and Consol
Comm PT Total Comm PT Total Comm PT Total OCG Elims Total
Revenue from services $ 2,660.9 $ 982.8 $ 3,643.7 $ 990.1 $ 178.9 $ 1,169.0 $ 397.6 $ 51.4 $ 449.0 $ 317.3 $ (28.0 ) $ 5,551.0
Cost of services 2,283.9 834.6 3,118.5 829.5 131.5 961.0 341.9 30.8 372.7 230.0 (25.3 ) 4,656.9
Gross profit 377.0 148.2 525.2 160.6 47.4 208.0 55.7 20.6 76.3 87.3 (2.7 ) 894.1
SG&A expenses 398.5 190.0 77.0 89.9 81.0 836.4
Earnings from operations $ 126.7 $ 18.0 $ (0.7 ) $ (2.6 ) $ (83.7 ) $ 57.7
Note: Beginning in fiscal 2012, we are eliminating the expense allocation between Commercial and PT at the Americas, EMEA and APAC regions. The above presentation is a proforma of the segment structure with 2011 December year-to-date results.

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