Kelly Services(R) Reports Strong Finish to the Year and

TROY, MI--(Marketwired - February 04, 2016) - Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB)

Fourth Quarter Highlights

Earnings from operations triple from a year ago, excluding restructuring
Earnings per share of $0.88 versus $0.54, excluding restructuring, a 63% increase year-over-year
OCG segment revenue up 14% year-over-year (up 16% in constant currency)
Total Company revenue up 3% year-over-year (up 7% in constant currency)

Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB), a global leader in providing workforce solutions, today announced results for the fourth quarter and full year of 2015.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2015 totaled $1.5 billion, a 3% increase (a 7% increase on a constant currency basis) compared to the corresponding quarter of 2014. Revenue for the full year totaled $5.5 billion, a 1% decrease (a 5% increase on a constant currency basis) compared to the prior year. Fourth quarter 2015 and fiscal 2015 include 14 and 53 weeks, respectively.

Earnings from operations for the fourth quarter of 2015 totaled $26.5 million, compared to $2.6 million reported for the fourth quarter of 2014. The results of operations in the fourth quarter of 2014 included restructuring charges of $6.2 million. Excluding the restructuring charges, earnings from operations were $8.8 million in the fourth quarter of 2014.

Earnings from operations for the full year of 2015 totaled $66.7 million compared to $21.9 million in 2014. Included in the results from operations for 2014 are restructuring charges of $12.0 million. Excluding this item, earnings from operations were $33.9 million in 2014.

Diluted earnings per share in the fourth quarter of 2015 were $0.88 compared to $0.44 per share in the fourth quarter of 2014. Included in diluted earnings per share for the fourth quarter of 2014 are restructuring charges of $0.10 per share. Excluding this item, diluted earnings per share for the fourth quarter of 2014 were $0.54 per share.

Diluted earnings per share for the full year of 2015 were $1.39 compared to $0.61 per share in 2014. The diluted earnings per share for 2014 included restructuring charges of $0.19 per share. Excluding this item, diluted earnings per share for 2014 were $0.81 per share.

Commenting on the fourth quarter, Camden stated, "Kelly's fourth quarter performance capped off a year of solid earnings growth, and we are very pleased with our strong operating leverage and strategic execution throughout 2015. All told, excluding the 2014 restructuring charges, we dropped nearly 70% of our full-year constant currency GP dollar growth to the bottom line. Kelly has entered 2016 as a more efficient organization keenly focused on profitability…and we expect our investments in PT and OCG to continue yielding results as we expand Kelly's role as a trusted talent advisor to our clients worldwide."

In conjunction with its fourth quarter and full year earnings release, Kelly Services has published a financial presentation regarding the fourth quarter and full year results on the Investor Relations page of our public website and will host a conference call at 9:00 a.m. (ET) on February 4, 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 and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, the risk our intellectual assets could be infringed upon or compromised, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of full-time employees to lead complex talent supply chain sales and operations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, 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 maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry developments or operational circumstances, unexpected changes in claim trends on workers' compensation, disability and medical benefit plans, the impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax laws ), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, 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 ^®

As a global leader in providing workforce solutions, Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Kelly^® has a role in managing employment opportunities for more than one million workers around the globe by employing 550,000 of these individuals directly with the remaining workers engaged through its talent supply chain network of supplier partners. Revenue in 2015 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KLYA-FIN



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 14 WEEKS ENDED JANUARY 3, 2016 AND 13 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

												%		CC %
		2015			2014			Change				Change		Change

Revenue from services		$	1,461.6		$	1,425.0		$	36.6			2.6	%	7.3	%

Cost of services			1,212.1			1,192.4			19.7			1.7

Gross profit			249.5			232.6			16.9			7.2		11.7

Selling, general and administrative expenses			223.0			230.0			(7.0	)		(3.1	)	0.5

Earnings from operations			26.5			2.6			23.9			NM

Other expense, net			0.7			1.1			(0.4	)		(40.9	)

Earnings before taxes			25.8			1.5			24.3			NM

Income tax (benefit) expense			(8.4	)		(15.5	)		7.1			46.1

Net earnings		$	34.2		$	17.0		$	17.2			99.5	%

Basic earnings per share		$	0.88		$	0.44		$	0.44			100.0	%
Diluted earnings per share		$	0.88		$	0.44		$	0.44			100.0	%


STATISTICS:

Gross profit rate			17.1	%		16.3	%		0.8		pts.

Selling, general and administrative expenses:
	% of revenue		15.3			16.1			(0.8	)
	% of gross profit		89.4			98.8			(9.4	)

% Return:
	Earnings from operations		1.8			0.2			1.6
	Earnings before taxes		1.8			0.1			1.7
	Net earnings		2.3			1.2			1.1

Effective income tax rate			(32.4	)%		(949.7	)%		917.3		pts.

Average number of shares outstanding (millions):
	Basic		38.0			37.7
	Diluted		38.0			37.7

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.9			38.9
	Diluted		38.9			38.9



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

												%		CC %
		2015			2014			Change				Change		Change

Revenue from services		$	5,518.2		$	5,562.7		$	(44.5	)		(0.8	)%	4.7	%

Cost of services			4,597.9			4,654.3			(56.4	)		(1.2	)

Gross profit			920.3			908.4			11.9			1.3		6.4

Selling, general and administrative expenses			853.6			886.5			(32.9	)		(3.7	)	0.8

Earnings from operations			66.7			21.9			44.8			206.2

Other expense, net			4.2			5.3			(1.1	)		(19.9	)

Earnings before taxes			62.5			16.6			45.9			277.4

Income tax expense (benefit)			8.7			(7.1	)		15.8			221.4

Net earnings		$	53.8		$	23.7		$	30.1			126.9	%

Basic earnings per share		$	1.39		$	0.61		$	0.78			127.9	%
Diluted earnings per share		$	1.39		$	0.61		$	0.78			127.9	%


STATISTICS:

Gross profit rate			16.7	%		16.3	%		0.4		pts.

Selling, general and administrative expenses:
	% of revenue		15.5			15.9			(0.4	)
	% of gross profit		92.8			97.6			(4.8	)

% Return:
	Earnings from operations		1.2			0.4			0.8
	Earnings before taxes		1.1			0.3			0.8
	Net earnings		1.0			0.4			0.6

Effective income tax rate			13.9	%		(43.2	)%		57.1		pts.

Average number of shares outstanding (millions):
	Basic		37.8			37.5
	Diluted		37.9			37.5

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.8			38.6
	Diluted		38.9			38.6



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

				Fourth Quarter

				2015			2014			%			CC %
				(14 Wks)			(13 Wks)			Change			Change
AMERICAS
	Commercial
		Revenue from services		$	696.1		$	694.5		0.2	%		2.7	%
		Staffing fee-based income included in revenue from services			3.7			4.0		(5.5	)		(3.2	)
		Gross profit			110.0			99.6		10.3			12.5
		Gross profit rate			15.8			14.4	%	1.4		pts.
	PT
		Revenue from services		$	250.1		$	232.9		7.4	%		7.8	%
		Staffing fee-based income included in revenue from services			4.5			3.9		17.0			18.7
		Gross profit			43.0			37.5		14.5			15.0
		Gross profit rate			17.2	%		16.1	%	1.1		pts.
	Total Americas
		Revenue from services		$	946.2		$	927.4		2.0	%		4.0	%
		Staffing fee-based income included in revenue from services			8.2			7.9		5.6			7.7
		Gross profit			153.0			137.1		11.4			13.2
		Total SG&A expenses			116.8			113.9		2.5			4.4
		Earnings from operations			36.2			23.2		55.2

		Gross profit rate			16.2	%		14.8	%	1.4		pts.
		Expense rates:
			% of revenue		12.3			12.3		-
			% of gross profit		76.3			83.0		(6.7	)
		Return on sales			3.8			2.5		1.3

EMEA
	Commercial
		Revenue from services		$	200.5		$	204.5		(2.0	)%		10.8	%
		Staffing fee-based income included in revenue from services			3.3			3.3		(0.8	)		15.8
		Gross profit			27.5			29.6		(6.9	)		5.7
		Gross profit rate			13.7	%		14.4	%	(0.7	)	pts.
	PT
		Revenue from services		$	44.7		$	44.8		(0.3	)%		12.3	%
		Staffing fee-based income included in revenue from services			2.4			2.8		(17.9	)		(3.7	)
		Gross profit			9.4			9.6		(3.4	)		10.3
		Gross profit rate			21.0	%		21.7	%	(0.7	)	pts.
	Total EMEA
		Revenue from services		$	245.2		$	249.3		(1.7	)%		11.1	%
		Staffing fee-based income included in revenue from services			5.7			6.1		(8.6	)		6.9
		Gross profit			36.9			39.2		(6.1	)		6.8
		Total SG&A expenses			29.7			36.4		(18.4	)		(8.2	)
		Earnings from operations			7.2			2.8		152.4

		Gross profit rate			15.0	%		15.7	%	(0.7	)	pts.
		Expense rates:
			% of revenue		12.1			14.6		(2.5	)
			% of gross profit		80.6			92.8		(12.2	)
		Return on sales			2.9			1.1		1.8



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

					Fourth Quarter

					2015			2014		%			CC %
					(14 Wks)			(13 Wks)		Change			Change
APAC
	Commercial
		Revenue from services		$	88.1		$	91.3		(3.5	)%		11.3	%
		Staffing fee-based income included in revenue from services			1.3			2.0		(34.0	)		(26.1	)
		Gross profit			10.4			11.8		(12.1	)		1.0
		Gross profit rate			11.8	%		12.9	%	(1.1	)	pts.
	PT
		Revenue from services		$	9.8		$	11.2		(12.7	)%		0.6
		Staffing fee-based income included in revenue from services			1.2			2.0		(38.0	)		(27.5	)
		Gross profit			2.4			3.3		(28.7	)		(17.4	)
		Gross profit rate			24.5	%		29.9	%	(5.4	)	pts.
	Total APAC
		Revenue from services		$	97.9		$	102.5		(4.5	)%		10.1
		Staffing fee-based income included in revenue from services			2.5			4.0		(36.0	)		(26.8	)
		Gross profit			12.8			15.1		(15.7	)		(3.1	)
		Total SG&A expenses			11.2			13.1		(13.8	)		(1.4	)
		Earnings from operations			1.6			2.0		(27.5	)

		Gross profit rate			13.0	%		14.8	%	(1.8	)	pts.
		Expense rates:
			% of revenue		11.4			12.7		(1.3	)
			% of gross profit		87.8			85.8		2.0
		Return on sales			1.6			2.1		(0.5	)

OCG
		Revenue from services		$	187.5		$	164.7		13.8	%		15.6
		Gross profit			48.0			42.3		13.8			16.1
		Total SG&A expenses			34.0			32.6		4.0			6.4
		Earnings from operations			14.0			9.7		47.1

		Gross profit rate			25.6	%		25.6	%	--		pts.
		Expense rates:
			% of revenue		18.1			19.8		(1.7	)
			% of gross profit		70.7			77.4		(6.7	)
		Return on sales			7.5			5.8		1.7



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


					December Year to Date

					2015			2014		%			CC %
					(53 Wks)			(52 Wks)		Change			Change
AMERICAS
	Commercial
		Revenue from services		$	2,604.3		$	2,609.6		(0.2	)%		2.0
		Staffing fee-based income included in revenue from services			14.5			14.4		1.0			3.5
		Gross profit			400.3			379.6		5.4			7.4
		Gross profit rate			15.4	%		14.5	%	0.9		pts.
	PT
		Revenue from services		$	971.9		$	956.0		1.7	%		2.1
		Staffing fee-based income included in revenue from services			17.6			15.6		13.0			14.1
		Gross profit			165.0			155.9		5.9			6.3
		Gross profit rate			17.0	%		16.3	%	0.7		pts.
	Total Americas
		Revenue from services		$	3,576.2		$	3,565.6		0.3	%		2.0
		Staffing fee-based income included in revenue from services			32.1			30.0		7.2			9.0
		Gross profit			565.3			535.5		5.5			7.1
		Total SG&A expenses			456.6			446.8		2.2			3.7
		Earnings from operations			108.7			88.7		22.7

		Gross profit rate			15.8	%		15.0	%	0.8		pts.
		Expense rates:
			% of revenue		12.8			12.5		0.3
			% of gross profit		80.8			83.5		(2.7	)
		Return on sales			3.0			2.5		0.5

EMEA
	Commercial
		Revenue from services		$	773.5		$	894.7		(13.6	)%		2.7
		Staffing fee-based income included in revenue from services			13.2			17.3		(23.7	)		(5.8	)
		Gross profit			106.6			130.6		(18.4	)		(2.9	)
		Gross profit rate			13.8	%		14.6	%	(0.8	)	pts.
	PT
		Revenue from services		$	171.5		$	190.3		(9.8	)%		6.5
		Staffing fee-based income included in revenue from services			10.1			13.5		(25.7	)		(8.8	)
		Gross profit			36.6			42.9		(14.8	)		2.0
		Gross profit rate			21.3	%		22.6	%	(1.3	)	pts.
	Total EMEA
		Revenue from services		$	945.0		$	1,085.0		(12.9	)%		3.4
		Staffing fee-based income included in revenue from services			23.3			30.8		(24.5	)		(7.1	)
		Gross profit			143.2			173.5		(17.5	)		(1.7	)
		SG&A expenses excluding restructuring charges			129.2			160.6		(19.6	)		(5.0	)
		Restructuring charges			-			0.8		(100.0	)		-
		Total SG&A expenses			129.2			161.4		(20.0	)		(5.5	)
		Earnings from operations			14.0			12.1		16.1
		Earnings from operations excluding restructuring charges			14.0			12.9		8.8

		Gross profit rate			15.2	%		16.0	%	(0.8	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		13.7			14.8		(1.1	)
			% of gross profit		90.2			92.5		(2.3	)
		Return on sales (excluding restructuring charges)			1.5			1.2		0.3



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

					December Year to Date

					2015			2014		%			CC %
					(53 Wks)			(52 Wks)		Change			Change
APAC
	Commercial
		Revenue from services		$	347.2		$	351.8		(1.3	)%		12.6
		Staffing fee-based income included in revenue from services			6.0			7.9		(23.8	)		(14.7	)
		Gross profit			45.3			47.5		(4.6	)		8.3
		Gross profit rate			13.0	%		13.5	%	(0.5	)	pts.
	PT
		Revenue from services		$	40.5		$	40.4		0.4	%		14.9
		Staffing fee-based income included in revenue from services			5.6			7.8		(27.3	)		(17.9	)
		Gross profit			10.5			12.7		(17.6	)		(6.3	)
		Gross profit rate			26.0	%		31.6	%	(5.6	)	pts.
	Total APAC
		Revenue from services		$	387.7		$	392.2		(1.1	)%		12.9
		Staffing fee-based income included in revenue from services			11.6			15.7		(25.5	)		(16.3	)
		Gross profit			55.8			60.2		(7.4	)		5.2
		SG&A expenses excluding restructuring charges			46.7			56.4		(17.0	)		(5.9	)
		Restructuring charges			-			1.3		(100.0	)		-
		Total SG&A expenses			46.7			57.7		(19.0	)		(8.1	)
		Earnings from operations			9.1			2.5		261.6
		Earnings from operations excluding restructuring charges			9.1			3.8		134.2

		Gross profit rate			14.4	%		15.4	%	(1.0	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		12.1			14.4		(2.3	)
			% of gross profit		83.9			93.6		(9.7	)
		Return on sales (excluding restructuring charges)			2.3			1.0		1.3

OCG
		Revenue from services		$	673.8		$	586.8		14.8	%		16.6
		Gross profit			160.6			143.6		11.9			14.2
		Total SG&A expenses			132.1			127.3		3.7			6.4
		Earnings from operations			28.5			16.3		75.8

		Gross profit rate			23.8	%		24.5	%	(0.7	)	pts.
		Expense rates:
			% of revenue		19.6			21.7		(2.1	)
			% of gross profit		82.2			88.7		(6.5	)
		Return on sales			4.2			2.8		1.4



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)


			January 3, 2016			Dec. 28, 2014
Current Assets
	Cash and equivalents	$	42.2		$	83.1
	Trade accounts receivable, less allowances of $10.5 and $10.7, respectively		1,139.1			1,122.8
	Prepaid expenses and other current assets		45.8			47.9
	Deferred taxes		-			34.4
Total current assets			1,227.1			1,288.2

Property and Equipment, Net			88.9			93.0

Noncurrent Deferred Taxes			189.3			146.3

Goodwill, Net			90.3			90.3

Other Assets			344.0			300.1

Total Assets		$	1,939.6		$	1,917.9

Current Liabilities
	Short-term borrowings	$	55.5		$	91.9
	Accounts payable and accrued liabilities		405.5			364.0
	Accrued payroll and related taxes		268.1			308.5
	Accrued insurance		26.7			26.9
	Income and other taxes		60.0			68.8

Total current liabilities			815.8			860.1

Noncurrent Liabilities
	Accrued insurance		40.0			43.9
	Accrued retirement benefits		141.0			140.8
	Other long-term liabilities		47.4			39.4

Total noncurrent liabilities			228.4			224.1

Stockholders' Equity
	Common stock		40.1			40.1
	Treasury stock		(44.3	)		(49.8	)
	Paid-in capital		25.4			24.9
	Earnings invested in the business		813.5			767.4
	Accumulated other comprehensive income		60.7			51.1

Total stockholders' equity			895.4			833.7

Total Liabilities and Stockholders' Equity		$	1,939.6		$	1,917.9


STATISTICS:
	Working Capital	$	411.3		$	428.1
	Current Ratio		1.5			1.5
	Debt-to-capital %		5.8	%		9.9	%
	Global Days Sales Outstanding		54			54



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars)


				2015			2014
Cash flows from operating activities:
	Net earnings		$	53.8		$	23.7
	Noncash adjustments:
		Depreciation and amortization		22.3			21.7
		Provision for bad debts		3.7			5.3
		Stock-based compensation		6.1			5.3
		Other, net		(4.7	)		(2.2	)
	Changes in operating assets and liabilities			(57.7	)		(123.8	)

		Net cash from (used in) operating activities		23.5			(70.0	)

Cash flows from investing activities:
	Capital expenditures			(16.9	)		(21.7	)
	Investment in equity affiliate			(0.5	)		(5.7	)
	Other investing activities			(0.2	)		0.2

		Net cash used in investing activities		(17.6	)		(27.2	)

Cash flows from financing activities:
	Net change in short-term borrowings			(34.7	)		63.9
	Dividend payments			(7.7	)		(7.6	)
	Other financing activities			0.2			0.3

		Net cash (used in) from financing activities		(42.2	)		56.6

Effect of exchange rates on cash and equivalents				(4.6	)		(2.0	)

Net change in cash and equivalents				(40.9	)		(42.6	)
Cash and equivalents at beginning of period				83.1			125.7


Cash and equivalents at end of period			$	42.2		$	83.1



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

			Fourth Quarter (Commercial, PT and OCG)

			2015		2014	%		CC %
			(14 Wks)		(13 Wks)	Change		Change

Americas
	United States	$	998.8	$	933.9	6.9	%	6.9	%
	Canada		38.0		50.0	(24.0	)	(11.0	)
	Mexico		35.3		36.7	(3.9	)	16.3
	Puerto Rico		24.7		26.6	(7.1	)	(7.1	)
	Brazil		8.7		13.9	(37.5	)	(1.7	)
Total Americas			1,105.5		1,061.1	4.2		6.0

EMEA
	France		65.6		66.4	(1.1	)	12.8
	Switzerland		55.5		57.8	(4.0	)	(1.3	)
	Portugal		33.8		32.4	4.2		18.9
	United Kingdom		26.7		23.2	15.1		20.3
	Russia		18.2		20.9	(12.9	)	22.2
	Germany		16.2		16.8	(4.0	)	9.5
	Italy		14.5		13.9	3.9		18.7
	Norway		9.7		11.9	(18.1	)	2.1
	Other		13.0		13.6	(4.4	)	9.4
Total EMEA			253.2		256.9	(1.4	)	11.3

APAC
	Singapore		33.0		32.7	0.7		9.5
	Australia		31.1		32.6	(4.6	)	13.5
	Malaysia		14.1		16.2	(12.7	)	11.4
	New Zealand		11.2		13.2	(14.5	)	0.4
	Other		13.5		12.3	9.2		19.5
Total APAC			102.9		107.0	(3.8	)	11.0

Total Kelly Services, Inc.		$	1,461.6	$	1,425.0	2.6	%	7.3	%



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

			December Year to Date (Commercial, PT and OCG)

			2015		2014	%		CC %
			(53 Wks)		(52 Wks)	Change		Change

Americas
	United States	$	3,705.2	$	3,535.8	4.8	%	4.8	%
	Canada		160.2		198.2	(19.2	)	(6.9	)
	Mexico		130.5		139.0	(6.1	)	11.9
	Puerto Rico		99.9		105.0	(4.8	)	(4.8	)
	Brazil		42.9		57.1	(24.9	)	1.7
Total Americas			4,138.7		4,035.1	2.6		4.2

EMEA
	France		246.0		268.6	(8.4	)	9.4
	Switzerland		216.2		253.5	(14.7	)	(10.3	)
	Portugal		132.5		124.8	6.2		27.0
	United Kingdom		105.1		105.6	(0.4	)	7.3
	Russia		75.6		117.3	(35.5	)	3.2
	Germany		59.3		67.5	(12.3	)	4.7
	Italy		54.0		60.2	(10.3	)	7.1
	Norway		39.2		55.5	(29.5	)	(9.6	)
	Other		45.8		64.5	(29.0	)	(15.2	)
Total EMEA			973.7		1,117.5	(12.9	)	3.3

APAC
	Singapore		129.9		127.5	1.9		10.5
	Australia		123.2		121.4	1.5		21.8
	Malaysia		59.5		66.2	(10.1	)	6.7
	New Zealand		41.4		51.4	(19.4	)	(4.4	)
	Other		51.8		43.6	18.6		26.9
Total APAC			405.8		410.1	(1.0	)	13.1

Total Kelly Services, Inc.		$	5,518.2	$	5,562.7	(0.8	)%	4.7	%



KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 14 WEEKS ENDED JANUARY 3, 2016 AND 13 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

			2015			2014
			As reported			Adjusted Earnings			% Change

Revenue from services		$	1,461.6		$	1,425.0			2.6	%

Cost of services			1,212.1			1,192.4			1.7

Gross profit			249.5			232.6			7.2

SG&A expenses			223.0			223.8			(0.4	)

Earnings from operations			26.5			8.8			196.7

Other expense, net			0.7			1.1			(40.9	)

Earnings before taxes			25.8			7.7			229.2

Inc. tax (benefit) expense*			(8.4	)		(13.1	)		36.2

Net earnings		$	34.2		$	20.8			63.1	%

Earnings per share:
	Basic	$	0.88		$	0.54			63.0	%
	Diluted	$	0.88		$	0.54			63.0	%

* Income tax benefit for the fourth quarters of 2015 and 2014 includes $13.9 million and $13.6 million, respectively, related to the retroactive reinstatement of work opportunity credits for the entire year.

			2014
			As reported			Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services		$	1,425.0		$	-		$	1,425.0

Cost of services			1,192.4			-			1,192.4

Gross profit			232.6			-			232.6

SG&A expenses			230.0			(6.2	)		223.8

Earnings from operations			2.6			6.2			8.8

Other expense, net			1.1			-			1.1

Earnings before taxes			1.5			6.2			7.7

Inc. tax (benefit) expense			(15.5	)		2.4			(13.1	)

Net earnings		$	17.0		$	3.8		$	20.8

Earnings per share:
	Basic	$	0.44		$	0.10		$	0.54
	Diluted	$	0.44		$	0.10		$	0.54

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.



KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

		2015			2014
		As reported			Adjusted Earnings			% Change

Revenue from services	$	5,518.2		$	5,562.7			(0.8	)%

Cost of services		4,597.9			4,654.3			(1.2	)

Gross profit		920.3			908.4			1.3

SG&A expenses		853.6			874.5			(2.4	)

Earnings from operations		66.7			33.9			97.2

Other expense, net		4.2			5.3			(19.9	)

Earnings before taxes		62.5			28.6			118.6

Inc. tax expense (benefit)		8.7			(2.6	)		432.2

Net earnings	$	53.8		$	31.2			72.4	%

Earnings per share:
Basic	$	1.39		$	0.81			71.6	%
Diluted	$	1.39		$	0.81			71.6	%

		2014
		As reported			Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services	$	5,562.7		$	-		$	5,562.7

Cost of services		4,654.3			-			4,654.3

Gross profit		908.4			-			908.4

SG&A expenses		886.5			(12.0	)		874.5

Earnings from operations		21.9			12.0			33.9

Other expense, net		5.3			-			5.3

Earnings before taxes		16.6			12.0			28.6

Inc. tax (benefit) expense		(7.1	)		4.5			(2.6	)

Net earnings	$	23.7		$	7.5		$	31.2

Earnings per share:
Basic	$	0.61		$	0.19		$	0.81
Diluted	$	0.61		$	0.19		$	0.81

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

KELLY SERIVCES, 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 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 charges in 2014 includes costs related to the U.S. management simplification restructuring plan, costs incurred for exiting the staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand.

Contact Information:

ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com

MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com

Kelly Services(R) Reports Strong Finish to the Year and Solid 2015 Results

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