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: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other 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. About Kelly Services Kelly Services, Inc. (
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JULY 4, 2010 AND JUNE 28, 2009
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
------------ ------------ ------------ ------------
Revenue from
services $ 1,209.4 $ 1,028.9 $ 180.5 17.5%
Cost of services 1,018.5 857.2 161.3 18.8
------------ ------------ ------------ ------------
Gross profit 190.9 171.7 19.2 11.2
Selling, general
and administrative
expenses 180.9 193.6 (12.7) (6.5)
Asset impairments 1.5 52.6 (51.1) (97.1)
------------ ------------ ------------ ------------
Earnings (loss)
from operations 8.5 (74.5) 83.0 NM
Other expense, net (2.1) (1.0) (1.1) (108.1)
------------ ------------ ------------ ------------
Earnings (loss)
from continuing
operations before
taxes 6.4 (75.5) 81.9 NM
Income taxes 2.5 (9.5) 12.0 126.9
------------ ------------ ------------ ------------
Earnings (loss)
from continuing
operations 3.9 (66.0) 69.9 NM
Earnings from
discontinued
operations, net of
tax - - - -
------------ ------------ ------------ ------------
Net earnings (loss) $ 3.9 $ (66.0) $ 69.9 NM%
============ ============ ============ ============
Basic earnings
(loss) per share
on common stock
Earnings (loss)
from continuing
operations $ 0.11 $ (1.89) $ 2.00 NM%
Earnings from
discontinued
operations - - - -
Net earnings (loss) 0.11 (1.89) 2.00 NM
Diluted earnings
(loss) per share
on common stock
Earnings (loss)
from continuing
operations $ 0.11 $ (1.89) $ 2.00 NM%
Earnings from
discontinued
operations - - - -
Net earnings (loss) 0.11 (1.89) 2.00 NM
------------ ------------ ------------ ------------
STATISTICS:
Gross profit rate 15.8% 16.7% (0.9) pts.
Selling, general
and administrative
expenses:
% of revenue 15.0 18.8 (3.8)
% of gross
profit 94.8 112.7 (17.9)
% Return -
Earnings (loss)
from operations 0.7 (7.2) 7.9
Earnings (loss)
from continuing
operations
before taxes 0.5 (7.3) 7.8
Earnings (loss)
from continuing
operations 0.3 (6.4) 6.7
Net earnings (loss) 0.3 (6.4) 6.7
Effective income
tax rate 39.8% 12.5% 27.3 pts.
Average number of
shares outstanding
(millions):
Basic 36.0 34.8
Diluted 36.0 34.8
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JULY 4, 2010 AND JUNE 28, 2009
(UNAUDITED)
(In millions of dollars except per share data)
2010 2009 Change % Change
------------ ------------ ------------ ------------
Revenue from
services $ 2,339.8 $ 2,071.5 $ 268.3 13.0%
Cost of services 1,968.9 1,724.3 244.6 14.2
------------ ------------ ------------ ------------
Gross profit 370.9 347.2 23.7 6.8
Selling, general
and administrative
expenses 362.5 399.7 (37.2) (9.3)
Asset impairments 1.5 52.6 (51.1) (97.1)
------------ ------------ ------------ ------------
Earnings (loss)
from operations 6.9 (105.1) 112.0 NM
Other (expense)
income, net (3.2) 0.3 (3.5) NM
------------ ------------ ------------ ------------
Earnings (loss)
from continuing
operations before
taxes 3.7 (104.8) 108.5 NM
Income taxes 1.8 (22.7) 24.5 108.1
------------ ------------ ------------ ------------
Earnings (loss)
from continuing
operations 1.9 (82.1) 84.0 NM
Earnings from
discontinued
operations, net of
tax - 0.6 (0.6) (100.0)
------------ ------------ ------------ ------------
Net earnings (loss) $ 1.9 $ (81.5) $ 83.4 NM%
============ ============ ============ ============
Basic earnings
(loss) per share
on common stock
Earnings (loss)
from continuing
operations $ 0.05 $ (2.36) $ 2.41 NM%
Earnings from
discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.05 (2.34) 2.39 NM
Diluted earnings
(loss) per share
on common stock
Earnings (loss)
from continuing
operations $ 0.05 $ (2.36) $ 2.41 NM%
Earnings from
discontinued
operations - 0.02 (0.02) (100.0)
Net earnings (loss) 0.05 (2.34) 2.39 NM
------------ ------------ ------------ ------------
STATISTICS:
Gross profit rate 15.9% 16.8% (0.9) pts.
Selling, general
and administrative
expenses:
% of revenue 15.5 19.3 (3.8)
% of gross
profit 97.7 115.1 (17.4)
% Return -
Earnings (loss)
from operations 0.3 (5.1) 5.4
Earnings (loss)
from continuing
operations
before taxes 0.2 (5.1) 5.3
Earnings (loss)
from continuing
operations 0.1 (4.0) 4.1
Net earnings (loss) 0.1 (3.9) 4.0
Effective income
tax rate 49.3% 21.7% 27.6 pts.
Average number of
shares outstanding
(millions):
Basic 35.5 34.8
Diluted 35.5 34.8
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Second Quarter
--------------------------------------------------
Constant
Currency
2010 2009 Change Change
----------- ----------- ---------- -----------
Americas Commercial
Revenue from services
(including fee-based
income) $ 600.9 $ 473.0 27.0% 25.5%
Fee-based income 2.2 1.6 41.8 38.3
Gross profit 85.7 70.6 21.2 20.0
SG&A expenses
excluding
restructuring
charges 67.7 67.5 0.3
Restructuring charges - 1.1 (100.0)
Total SG&A expenses 67.7 68.6 (1.4) (2.5)
Earnings from
operations 18.0 2.0 NM
Earnings from
operations excluding
restructuring
charges 18.0 3.1 469.3
Gross profit rate 14.3% 14.9% (0.6) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 11.3 14.3 (3.0)
% of gross profit 79.0 95.5 (16.5)
Operating margin
(excluding
restructuring
charges) 3.0 0.7 2.3
Americas PT
Revenue from services
(including fee-based
income) $ 219.9 $ 194.8 12.9% 12.6%
Fee-based income 2.2 2.3 (2.7) (3.1)
Gross profit 34.5 32.2 7.3 7.0
SG&A expenses
excluding
restructuring
charges 22.7 25.5 (10.5)
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 22.7 25.6 (10.9) (11.1)
Earnings from
operations 11.8 6.6 76.4
Earnings from
operations excluding
restructuring
charges 11.8 6.7 73.3
Gross profit rate 15.7% 16.5% (0.8) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 10.3 13.0 (2.7)
% of gross profit 65.8 78.8 (13.0)
Operating margin
(excluding
restructuring
charges) 5.4 3.5 1.9
EMEA Commercial
Revenue from services
(including fee-based
income) $ 209.8 $ 211.7 (0.9)% 2.4%
Fee-based income 5.1 3.9 33.2 35.5
Gross profit 33.8 34.4 (1.6) 2.0
SG&A expenses
excluding
restructuring
charges 30.9 36.6 (15.5)
Restructuring charges - 3.1 (100.0)
Total SG&A expenses 30.9 39.7 (22.2) (19.6)
Asset impairments 1.5 - NM
Earnings from
operations 1.4 (5.3) NM
Earnings from
operations excluding
restructuring
charges 1.4 (2.2) NM
Gross profit rate 16.1% 16.2% (0.1) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 14.7 17.3 (2.6)
% of gross profit 91.5 106.5 (15.0)
Operating margin
(excluding
restructuring
charges) 0.6 (1.1) 1.7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Second Quarter
----------------------------------------------
Constant
Currency
2010 2009 Change Change
---------- ---------- ---------- ----------
EMEA PT
Revenue from services
(including fee-based
income) $ 34.4 $ 33.1 4.1% 8.6%
Fee-based income 3.9 3.8 3.6 5.2
Gross profit 9.3 8.8 6.2 9.8
Total SG&A expenses 8.8 10.1 (13.1) (10.0)
Earnings from operations 0.5 (1.3) NM
Gross profit rate 27.1% 26.6% 0.5 pts.
Expense rates:
% of revenue 25.5 30.6 (5.1)
% of gross profit 94.1 115.1 (21.0)
Operating margin 1.6 (4.0) 5.6
APAC Commercial
Revenue from services
(including fee-based
income) $ 83.7 $ 66.3 26.2% 13.8%
Fee-based income 2.7 2.3 15.1 3.6
Gross profit 11.7 9.7 20.9 8.5
SG&A expenses excluding
restructuring charges 10.7 10.8 (0.8)
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 10.7 10.9 (1.2) (11.3)
Earnings from operations 1.0 (1.2) NM
Earnings from operations
excluding restructuring
charges 1.0 (1.1) NM
Gross profit rate 14.0% 14.6% (0.6) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.8 16.3 (3.5)
% of gross profit 91.8 111.8 (20.0)
Operating margin
(excluding restructuring
charges) 1.2 (1.7) 2.9
APAC PT
Revenue from services
(including fee-based
income) $ 7.8 $ 5.5 41.1% 28.8%
Fee-based income 2.8 0.8 227.9 211.0
Gross profit 3.5 1.7 103.8 90.4
Total SG&A expenses 3.9 2.1 84.2 70.7
Earnings from operations (0.4) (0.4) 2.5
Gross profit rate 45.5% 31.5% 14.0 pts.
Expense rates:
% of revenue 50.4 38.6 11.8
% of gross profit 110.8 122.6 (11.8)
Operating margin (4.9) (7.1) 2.2
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Second Quarter
--------------------------------------------------
Constant
Currency
2010 2009 Change Change
----------- ----------- ---------- -----------
OCG
Revenue from services
(including fee-based
income) $ 60.4 $ 50.1 20.5 % 20.3%
Fee-based income 5.6 6.0 (6.1) (6.4)
Gross profit 13.0 14.6 (11.0) (10.9)
SG&A expenses
excluding
restructuring
charges 18.8 17.4 7.9
Restructuring charges - 0.4 (100.0)
Total SG&A expenses 18.8 17.8 5.6 5.7
Earnings from
operations (5.8) (3.2) (80.8)
Earnings from
operations excluding
restructuring
charges (5.8) (2.8) (104.8)
Gross profit rate 21.4% 29.0% (7.6) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 31.1 34.7 (3.6)
% of gross profit 144.9 119.5 25.4
Operating margin
(excluding
restructuring
charges) (9.6) (5.7) (3.9)
Corporate Expense
SG&A expenses
excluding
restructuring
charges $ 18.0 $ 19.2 (5.8)%
Restructuring charges - (0.1) (100.0)
Total SG&A expenses 18.0 19.1 (5.4)
Asset impairments - 52.6 (100.0)
Consolidated Total (net
of intersegment
activity)
Revenue from services
(including fee-based
income) $ 1,209.4 $ 1,028.9 17.5 % 16.8%
Fee-based income 24.4 20.6 18.9 17.2
Gross profit 190.9 171.7 11.2 10.7
SG&A expenses
excluding
restructuring
charges 180.9 188.9 (4.2)
Restructuring charges - 4.7 (100.0)
Total SG&A expenses 180.9 193.6 (6.5) (6.9)
Asset impairments 1.5 52.6 (97.1)
Earnings from
operations 8.5 (74.5) NM
Earnings from
operations excluding
restructuring
charges 8.5 (69.8) NM
Gross profit rate 15.8% 16.7% (0.9) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 15.0 18.4 (3.4)
% of gross profit 94.8 110.0 (15.2)
Operating margin
(excluding
restructuring
charges) 0.7 (6.8) 7.5
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
June Year to Date
--------------------------------------------------
Constant
Currency
2010 2009 Change Change
----------- ----------- ---------- ----------
Americas Commercial
Revenue from services
(including fee-based
income) $ 1,148.6 $ 955.4 20.2% 18.4%
Fee-based income 4.3 3.4 27.7 23.5
Gross profit 164.2 143.7 14.2 12.7
SG&A expenses
excluding
restructuring
charges 132.8 139.3 (4.8)
Restructuring charges 0.3 1.9 (81.5)
Total SG&A expenses 133.1 141.2 (5.8) (7.1)
Earnings from
operations 31.1 2.5 NM
Earnings from
operations excluding
restructuring
charges 31.4 4.4 NM
Gross profit rate 14.3% 15.0% (0.7) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 11.6 14.6 (3.0)
% of gross profit 80.8 96.9 (16.1)
Operating margin
(excluding
restructuring
charges) 2.7 0.5 2.2
Americas PT
Revenue from services
(including fee-based
income) $ 425.5 $ 392.2 8.5% 8.2%
Fee-based income 4.5 5.1 (11.2) (11.8)
Gross profit 66.0 63.7 3.8 3.5
SG&A expenses
excluding
restructuring
charges 45.7 51.7 (11.3)
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 45.7 51.8 (11.5) (11.8)
Earnings from
operations 20.3 11.9 70.2
Earnings from
operations excluding
restructuring
charges 20.3 12.0 68.3
Gross profit rate 15.5% 16.2% (0.7) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 10.8 13.2 (2.4)
% of gross profit 69.2 81.0 (11.8)
Operating margin
(excluding
restructuring
charges) 4.8 3.1 1.7
EMEA Commercial
Revenue from services
(including fee-based
income) $ 414.7 $ 428.3 (3.2)% (5.1)%
Fee-based income 9.9 8.6 15.5 11.6
Gross profit 66.6 68.9 (3.3) (5.2)
SG&A expenses
excluding
restructuring
charges 63.3 77.4 (18.3)
Restructuring charges 2.7 8.9 (69.9)
Total SG&A expenses 66.0 86.3 (23.6) (25.4)
Asset impairments 1.5 - NM
Earnings from
operations (0.9) (17.4) 94.8
Earnings from
operations excluding
restructuring
charges 1.8 (8.5) NM
Gross profit rate 16.1% 16.1% 0.0 pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 15.3 18.1 (2.8)
% of gross profit 95.0 112.4 (17.4)
Operating margin
(excluding
restructuring
charges) 0.4 (2.0) 2.4
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
June Year to Date
----------------------------------------------
Constant
Currency
2010 2009 Change Change
---------- ---------- ---------- ----------
EMEA PT
Revenue from services
(including fee-based
income) $ 69.3 $ 65.9 5.2% 3.8%
Fee-based income 7.6 8.2 (6.2) (9.5)
Gross profit 18.7 18.2 3.3 1.1
Total SG&A expenses 18.3 20.1 (8.7) (10.7)
Earnings from operations 0.4 (1.9) NM
Gross profit rate 27.1% 27.6% (0.5) pts.
Expense rates:
% of revenue 26.4 30.5 (4.1)
% of gross profit 97.6 110.4 (12.8)
Operating margin 0.7 (2.9) 3.6
APAC Commercial
Revenue from services
(including fee-based
income) $ 164.6 $ 130.7 25.9% 10.4%
Fee-based income 5.5 4.5 20.3 5.7
Gross profit 23.1 19.2 20.7 4.8
SG&A expenses excluding
restructuring charges 20.6 21.6 (4.6)
Restructuring charges 0.5 0.1 NM
Total SG&A expenses 21.1 21.7 (2.4) (15.3)
Earnings from operations 2.0 (2.5) NM
Earnings from operations
excluding restructuring
charges 2.5 (2.4) NM
Gross profit rate 14.0% 14.6% (0.6) pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.5 16.5 (4.0)
% of gross profit 89.3 113.0 (23.7)
Operating margin
(excluding restructuring
charges) 1.5 (1.9) 3.4
APAC PT
Revenue from services
(including fee-based
income) $ 15.4 $ 11.7 31.4% 16.2%
Fee-based income 4.7 1.8 158.3 142.1
Gross profit 6.3 3.6 73.6 58.4
Total SG&A expenses 7.7 4.3 78.7 62.5
Earnings from operations (1.4) (0.7) (107.8)
Gross profit rate 41.1% 31.1% 10.0 pts.
Expense rates:
% of revenue 49.7 36.6 13.1
% of gross profit 121.0 117.5 3.5
Operating margin (8.6) (5.4) (3.2)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
June Year to Date
--------------------------------------------------
Constant
Currency
2010 2009 Change Change
----------- ----------- ---------- -----------
OCG
Revenue from services
(including fee-based
income) $ 115.7 $ 98.8 17.1% 16.3%
Fee-based income 11.7 12.6 (7.0) (9.0)
Gross profit 27.0 30.5 (11.7) (12.8)
SG&A expenses
excluding
restructuring
charges 37.2 34.4 8.2
Restructuring charges 0.1 0.5 (85.0)
Total SG&A expenses 37.3 34.9 6.9 5.5
Earnings from
operations (10.3) (4.4) (134.9)
Earnings from
operations excluding
restructuring
charges (10.2) (3.9) (162.6)
Gross profit rate 23.3% 30.8% (7.5) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 32.2 34.8 (2.6)
% of gross profit 138.3 112.9 25.4
Operating margin
(excluding
restructuring
charges) (8.9) (4.0) (4.9)
Corporate Expense
SG&A expenses
excluding
restructuring
charges $ 33.5 $ 39.6 (15.1)%
Restructuring charges 0.8 0.4 90.8
Total SG&A expenses 34.3 40.0 (14.0)
Asset impairments - 52.6 (100.0)
Consolidated Total (net
of intersegment
activity)
Revenue from services
(including fee-based
income) $ 2,339.8 $ 2,071.5 13.0% 10.5%
Fee-based income 48.1 44.1 9.2 4.7
Gross profit 370.9 347.2 6.8 4.5
SG&A expenses
excluding
restructuring
charges 358.1 387.8 (7.6)
Restructuring charges 4.4 11.9 (63.0)
Total SG&A expenses 362.5 399.7 (9.3) (11.3)
Asset impairments 1.5 52.6 (97.1)
Earnings from
operations 6.9 (105.1) NM
Earnings from
operations excluding
restructuring
charges 11.3 (93.2) NM
Gross profit rate 15.9% 16.8% (0.9) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 15.3 18.7 (3.4)
% of gross profit 96.5 111.7 (15.2)
Operating margin
(excluding
restructuring
charges) 0.5 (4.5) 5.0
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JULY 4, 2010 AND JUNE 28, 2009
(UNAUDITED)
(In millions of dollars)
2010 2009
--------- ---------
Cash flows from operating activities
Net earnings (loss) $ 1.9 $ (81.5)
Noncash adjustments:
Impairment of assets 1.5 52.6
Depreciation and amortization 17.8 21.0
Provision for bad debts 0.5 1.3
Stock-based compensation 1.4 2.2
Other, net 0.8 (1.5)
Changes in operating assets and liabilities (44.2) 53.0
--------- ---------
Net cash from operating activities (20.3) 47.1
--------- ---------
Cash flows from investing activities
Capital expenditures (3.8) (5.0)
Acquisition of companies, net of cash received - (7.5)
Other investing activities 0.9 (3.0)
--------- ---------
Net cash from investing activities (2.9) (15.5)
--------- ---------
Cash flows from financing activities
Net change in revolving line of credit (11.8) (13.1)
Repayment of debt (7.3) (22.9)
Sale of stock and other financing activities 24.2 (0.8)
--------- ---------
Net cash from financing activities 5.1 (36.8)
--------- ---------
Effect of exchange rates on cash and equivalents (5.5) 2.1
--------- ---------
Net change in cash and equivalents (23.6) (3.1)
Cash and equivalents at beginning of period 88.9 118.3
--------- ---------
Cash and equivalents at end of period $ 65.3 $ 115.2
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
July 4, January 3, June 28,
2010 2010 2009
----------- ----------- -----------
Current Assets
Cash and equivalents $ 65.3 $ 88.9 $ 115.2
Trade accounts receivable, less
allowances of $13.0, $15.0 and
$15.4, respectively 751.8 717.9 681.0
Prepaid expenses and other current
assets 60.7 70.6 57.2
Deferred taxes 21.2 21.0 29.7
----------- ----------- -----------
Total current assets 899.0 898.4 883.1
Property and Equipment, Net 112.1 127.1 137.7
Noncurrent Deferred Taxes 74.2 77.5 40.2
Goodwill, Net 67.3 67.3 67.3
Other Assets 127.5 131.4 125.3
----------- ----------- -----------
Total Assets $ 1,280.1 $ 1,301.7 $ 1,253.6
=========== =========== ===========
Current Liabilities
Short-term borrowings and current
portion of long-term debt $ 68.4 $ 79.6 $ 77.6
Accounts payable and accrued
liabilities 144.8 182.6 205.2
Accrued payroll and related taxes 228.3 208.3 217.4
Accrued insurance 19.8 19.7 25.2
Income and other taxes 47.3 47.4 18.1
----------- ----------- -----------
Total current
liabilities 508.6 537.6 543.5
Noncurrent Liabilities
Long-term debt 49.9 57.5 -
Accrued insurance 47.1 47.3 44.6
Accrued retirement benefits 72.4 76.9 66.4
Other long-term liabilities 15.4 16.0 14.9
----------- ----------- -----------
Total noncurrent
liabilities 184.8 197.7 125.9
Stockholders' Equity
Common stock 40.1 40.1 40.1
Treasury stock (71.3) (107.2) (107.8)
Paid-in capital 26.8 36.9 34.7
Earnings invested in the business 573.4 571.5 594.5
Accumulated other comprehensive
income 17.7 25.1 22.7
----------- ----------- -----------
Total stockholders'
equity 586.7 566.4 584.2
----------- ----------- -----------
Total Liabilities and Stockholders'
Equity $ 1,280.1 $ 1,301.7 $ 1,253.6
=========== =========== ===========
STATISTICS:
Working Capital $ 390.4 $ 360.8 $ 339.6
Current Ratio 1.8 1.7 1.6
Debt-to-capital % 16.8% 19.5% 11.7%
Global Days Sales Outstanding 50 51 51
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Second Quarter (Commercial, PT and OCG)
------------------------------------------
% Change
Constant
2010 2009 US$ Currency
---------- ---------- --------- ---------
Americas
United States $ 770.8 $ 633.3 21.7% 21.7%
Canada 54.5 42.6 28.1 12.7
Mexico 21.9 16.1 36.5 28.9
Puerto Rico 19.2 14.6 31.2 31.2
---------- ----------
Total Americas 866.4 706.6 22.6 21.5
EMEA
France 67.6 62.9 7.4 15.1
Switzerland 40.7 32.5 25.4 25.0
United Kingdom 34.2 50.2 (32.0) (29.6)
Russia 25.4 15.1 68.5 59.6
Portugal 19.1 12.6 51.9 63.7
Germany 16.2 15.5 5.1 12.7
Italy 14.7 17.6 (16.5) (10.1)
Norway 14.1 15.1 (6.9) (10.4)
Other 16.9 27.1 (37.7) (34.5)
---------- ----------
Total EMEA 248.9 248.6 0.1 3.7
APAC
Australia 28.7 22.5 27.0 9.3
Singapore 19.6 15.2 29.6 22.6
Malaysia 16.3 12.0 35.8 24.0
India 15.2 7.8 93.9 82.3
Other 14.3 16.2 (12.0) (22.4)
---------- ----------
Total APAC 94.1 73.7 27.5 15.2
Total Kelly Services, Inc. $ 1,209.4 $ 1,028.9 17.5% 16.8%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
June Year to Date (Commercial, PT and OCG)
------------------------------------------
% Change
Constant
2010 2009 US$ Currency
---------- ---------- --------- ---------
Americas
United States $ 1,481.0 $ 1,278.1 15.9% 15.9%
Canada 106.1 83.5 27.1 9.2
Mexico 40.9 30.8 32.8 21.9
Puerto Rico 33.9 30.3 12.0 12.0
---------- ----------
Total Americas 1,661.9 1,422.7 16.8 15.5
EMEA
France 134.9 124.6 8.2 9.3
Switzerland 72.1 61.0 18.2 14.1
United Kingdom 71.8 112.8 (36.3) (37.8)
Russia 48.7 29.0 68.1 54.0
Portugal 37.5 24.3 54.7 56.9
Germany 32.5 30.9 5.4 6.4
Italy 31.4 36.5 (14.0) (13.2)
Norway 28.0 28.2 (0.8) (9.9)
Other 36.1 55.3 (34.8) (35.9)
---------- ----------
Total EMEA 493.0 502.6 (1.9) (3.7)
APAC
Australia 56.3 42.9 31.1 4.8
Singapore 38.5 30.1 28.0 20.0
Malaysia 30.9 24.1 28.0 17.8
India 28.9 14.8 95.2 82.0
Other 30.3 34.3 (11.7) (24.9)
---------- ----------
Total APAC 184.9 146.2 26.4 10.9
Total Kelly Services, Inc. $ 2,339.8 $ 2,071.5 13.0% 10.5%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
Second Quarter June Year to Date
------------------ ------------------
2010 2009 2010 2009
--------- -------- -------- --------
Pretax earnings (loss) from
operations $ 8.5 $ (74.5) $ 6.9 $ (105.1)
Restructuring charges (Note 1) - 4.7 4.4 11.9
Asset impairments (Note 2) 1.5 52.6 1.5 52.6
Litigation charges - - - 0.9
--------- -------- -------- --------
Earnings (loss) from operations
excluding restructuring,
asset impairment and litigation
charges $ 10.0 $ (17.2) $ 12.8 $ (39.7)
========= ======== ======== ========
Second Quarter
--------------------------------------
2010 2009
------------------ ------------------
Per Per
Amount Share Amount Share
--------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 3.9 $ 0.11 $ (66.0) $ (1.89)
Restructuring charges, net of
taxes (Note 1) - - 4.0 0.11
Asset impairments, net of taxes
(Note 2) 1.2 0.03 49.2 1.41
--------- --------
Earnings (loss) from continuing
operations excluding
restructuring and asset
impairment charges, net of
taxes $ 5.1 $ 0.14 $ (12.8) $ (0.37)
========= ======== ======== ========
June Year to Date
--------------------------------------
2010 2009
------------------ ------------------
Per Per
Amount Share Amount Share
--------- -------- -------- --------
Earnings (loss) from continuing
operations, net of taxes $ 1.9 $ 0.05 $ (82.1) $ (2.36)
Restructuring charges, net of
taxes (Note 1) 3.6 0.10 10.4 0.30
Asset impairments, net of taxes
(Note 2) 1.2 0.03 49.2 1.41
Litigation charges - - 0.6 0.02
--------- --------
Earnings (loss) from continuing
operations excluding
restructuring, asset impairment
and litigation
charges, net of taxes $ 6.7 $ 0.19 $ (21.9) $ (0.63)
========= ======== ======== ========
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, asset impairment and
litigation 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) Restructuring charges represent global costs incurred in connection
with the reduction in the number of permanent employees and the
consolidation, sale or closure of branch locations. These costs include
severance, lease terminations, asset write-offs and other miscellaneous
costs.
(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.
Contact Information: ANALYST CONTACT: James Polehna (248) 244-4586 james_polehna@kellyservices.com MEDIA CONTACT: Jane Stehney (248) 244-5630 jane_stehney@kellyservices.com