Press Release Details

 

TROY, MI -- (Marketwired) -- 08/05/15 -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter of 2015.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2015 totaled $1.4 billion, a 2% decrease (a 4% increase on a constant currency basis) compared to the corresponding quarter of 2014.

Earnings from operations for the second quarter of 2015 totaled $11.5 million, compared to $5.9 million reported for the second quarter of 2014. Included in the results of operations in the second quarter of 2014 are restructuring charges of $1.8 million. Excluding the restructuring charges, earnings from operations were $7.7 million in the second quarter of 2014.

Diluted earnings per share in the second quarter of 2015 were $0.18 compared to $0.07 per share in the second quarter of 2014. Adjusted earnings per share were $0.10 in the second quarter of 2014.

Commenting on the second quarter, Camden stated, "I'm pleased to report that Kelly once again delivered strong operating leverage and improved returns. On a constant currency basis, we grew second quarter revenue and held our expenses relatively flat, dropping more than half of our gross profit growth to the bottom line. Last year's investments in PT and OCG are yielding results, and we are executing a strategy that clearly aligns with market trends and customer needs."

Kelly also reported that on August 4, its board of directors declared a dividend of $0.05 per share. The dividend is payable September 8 to shareholders of record as of the close of business on August 18.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 5, 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, 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 or market developments, 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 and the expiration and/or reinstatement of the U.S. work opportunity credit program), 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 2014 was $5.6 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 13 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
																	%			CC %
			2015				2014				Change						Change			Change
Revenue from services			$	1,385.0			$	1,410.5			$	(25.5	)				(1.8)	%		3.9	%
Cost of services				1,162.7				1,182.4				(19.7	)				(1.7	)
Gross profit				222.3				228.1				(5.8	)				(2.5	)		2.9
Selling, general and administrative expenses				210.8				222.2				(11.4	)				(5.2	)		(0.4	)
Earnings from operations				11.5				5.9				5.6					99.9
Other expense, net				1.0				0.3				0.7					276.3
Earnings before taxes				10.5				5.6				4.9					91.4
Income tax expense				3.7				2.8				0.9					34.7
Net earnings			$	6.8			$	2.8			$	4.0					148.6	%
Basic earnings per share			$	0.18			$	0.07			$	0.11					157.1	%
Diluted earnings per share			$	0.18			$	0.07			$	0.11					157.1	%
STATISTICS:
Gross profit rate				16.1	%			16.2	%			(0.1	)		pts.
Selling, general and administrative expenses:
	% of revenue			15.2				15.8				(0.6	)
	% of gross profit			94.8				97.5				(2.7	)
% Return:
Earnings from operations				0.8				0.4				0.4
Earnings before taxes				0.8				0.4				0.4
Net earnings				0.5				0.2				0.3
Effective income tax rate				35.3	%			50.2	%			(14.9	)		pts.
Average number of shares outstanding (millions):
	Basic			37.7				37.4
	Diluted			37.8				37.4
Shares adjusted for nonvested restricted awards (millions):
	Basic			38.8				38.5
	Diluted			38.8				38.6

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
																	%			CC %
			2015				2014				Change						Change			Change
Revenue from services			$	2,705.6			$	2,741.3			$	(35.7	)				(1.3	)%		4.1	%
Cost of services				2,263.0				2,290.9				(27.9	)				(1.2	)
Gross profit				442.6				450.4				(7.8	)				(1.7	)		3.3
Selling, general and administrative expenses				419.0				438.2				(19.2	)				(4.4	)		0.3
Earnings from operations				23.6				12.2				11.4					96.9
Other expense, net				3.5				2.0				1.5					82.2
Earnings before taxes				20.1				10.2				9.9					99.6
Income tax expense				9.6				4.9				4.7					98.4
Net earnings			$	10.5			$	5.3			$	5.2					100.8	%
Basic earnings per share			$	0.27			$	0.14			$	0.13					92.9	%
Diluted earnings per share			$	0.27			$	0.14			$	0.13					92.9	%
STATISTICS:
Gross profit rate				16.4	%			16.4	%			--			pts.
Selling, general and administrative expenses:
	% of revenue			15.5				16.0				(0.5	)
	% of gross profit			94.7				97.3				(2.6	)
% Return:
Earnings from operations				0.9				0.4				0.5
Earnings before taxes				0.7				0.4				0.3
Net earnings				0.4				0.2				0.2
Effective income tax rate				47.6	%			47.9	%			(0.3	)		pts.
Average number of shares outstanding (millions):
	Basic			37.7				37.4
	Diluted			37.8				37.4
Shares adjusted for nonvested restricted awards (millions):
	Basic			38.8				38.5
	Diluted			38.8				38.6

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					Second Quarter
																		Constant
																		Currency
					2015				2014				Change					Change
AMERICAS
	Commercial
		Revenue from services			$	651.3			$	661.1			(1.5	)%				0.5	%
		Staffing fee-based income included in revenue from services				3.5				3.4			4.6					7.3
		Gross profit				95.9				96.5			(0.7	)				1.1
		Gross profit rate				14.7	%			14.6	%		0.1			pts.
	PT
		Revenue from services			$	246.2			$	244.2			0.8	%				1.2	%
		Staffing fee-based income included in revenue from services				4.9				3.7			29.1					30.2
		Gross profit				42.1				39.0			8.0					8.4
		Gross profit rate				17.1	%			16.0	%		1.1			pts.
	Total Americas
		Revenue from services			$	897.5			$	905.3			(0.9	)%				0.7	%
		Staffing fee-based income included in revenue from services				8.4				7.1			17.4					19.3
		Gross profit				138.0				135.5			1.8					3.2
		Total SG&A expenses				112.6				112.6			(0.1	)				1.2
		Earnings from operations				25.4				22.9			11.4
		Gross profit rate				15.4	%			15.0	%		0.4			pts.
		Expense rates:
			% of revenue			12.5				12.4			0.1
			% of gross profit			81.6				83.1			(1.5	)
		Return on sales				2.8				2.5			0.3
EMEA
	Commercial
		Revenue from services			$	195.7			$	237.0			(17.4	)%				--	%
		Staffing fee-based income included in revenue from services				3.2				5.0			(35.9	)				(20.2	)
		Gross profit				26.8				34.5			(22.5	)				(5.9	)
		Gross profit rate				13.7	%			14.6	%		(0.9	)		pts.
	PT
		Revenue from services			$	42.9			$	49.7			(13.6	)%				4.5	%
		Staffing fee-based income included in revenue from services				2.5				3.6			(30.2	)				(13.3	)
		Gross profit				9.1				11.3			(19.0	)				(1.2	)
		Gross profit rate				21.2	%			22.6	%		(1.4	)		pts.
	Total EMEA
		Revenue from services			$	238.6			$	286.7			(16.8	)%				0.8	%
		Staffing fee-based income included in revenue from services				5.7				8.6			(33.5	)				(17.3	)
		Gross profit				35.9				45.8			(21.6	)				(4.7	)
		SG&A expenses excluding restructuring charges				34.2				42.3			(19.1	)
		Restructuring charges				--				0.8			(100.0	)
		Total SG&A expenses				34.2				43.1			(20.6	)				(5.0	)
		Earnings from operations				1.7				2.7			(38.1	)
		Earnings from operations excluding restructuring charges				1.7				3.5			(52.4	)
		Gross profit rate				15.0	%			16.0	%		(1.0	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			14.3				14.7			(0.4	)
			% of gross profit			95.3				92.3			3.0
		Return on sales (excluding restructuring charges)				0.7				1.2			(0.5	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					Second Quarter
																		Constant
																		Currency
					2015				2014				Change					Change
APAC
	Commercial
		Revenue from services			$	90.3			$	86.5			4.3	%				17.7	%
		Staffing fee-based income included in revenue from services				1.8				2.0			(10.9	)				(0.1	)
		Gross profit				11.2				11.7			(3.8	)				8.3
		Gross profit rate				12.4	%			13.5	%		(1.1	)		pts.
	PT
		Revenue from services			$	10.3			$	10.0			3.5	%				17.8	%
		Staffing fee-based income included in revenue from services				1.5				2.1			(29.0	)				(20.9	)
		Gross profit				2.7				3.3			(17.9	)				(7.6	)
		Gross profit rate				26.4	%			33.2	%		(6.8	)		pts.
	Total APAC
		Revenue from services			$	100.6			$	96.5			4.3	%				17.7	%
		Staffing fee-based income included in revenue from services				3.3				4.1			(20.3	)				(10.9	)
		Gross profit				13.9				15.0			(6.9	)				4.8
		SG&A expenses excluding restructuring charges				12.3				14.8			(17.0	)
		Restructuring charges				--				1.0			(100.0	)
		Total SG&A expenses				12.3				15.8			(22.5	)				(12.9	)
		Earnings from operations				1.6				(0.8	)		NM
		Earnings from operations excluding restructuring charges				1.6				0.2			NM
		Gross profit rate				13.9	%			15.5	%		(1.6	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			12.2				15.4			(3.2	)
			% of gross profit			88.3				99.0			(10.7	)
		Return on sales (excluding restructuring charges)				1.6				0.2			1.4
OCG
		Revenue from services			$	165.0			$	137.9			19.7	%				21.6	%
		Gross profit				35.7				32.9			8.4					11.4
		Total SG&A expenses				32.2				31.1			3.6					6.4
		Earnings from operations				3.5				1.8			88.8
		Gross profit rate				21.6	%			23.9	%		(2.3	)		pts.
		Expense rates:
			% of revenue			19.5				22.5			(3.0	)
			% of gross profit			90.2				94.4			(4.2	)
		Return on sales				2.1				1.3			0.8

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					June Year to Date
																		Constant
																		Currency
					2015				2014				Change					Change
AMERICAS
	Commercial
		Revenue from services			$	1,292.7			$	1,274.3			1.4	%				3.2	%
		Staffing fee-based income included in revenue from services				7.0				6.6			5.3					7.8
		Gross profit				193.7				188.3			2.9					4.4
		Gross profit rate				15.0	%			14.8	%		0.2			pts.
	PT
		Revenue from services			$	479.0			$	480.6			(0.3	)%				0.1	%
		Staffing fee-based income included in revenue from services				8.4				7.3			13.5					14.3
		Gross profit				81.0				78.8			2.9					3.3
		Gross profit rate				16.9	%			16.4	%		0.5			pts.
	Total Americas
		Revenue from services			$	1,771.7			$	1,754.9			1.0	%				2.4	%
		Staffing fee-based income included in revenue from services				15.4				13.9			9.6					11.2
		Gross profit				274.7				267.1			2.9					4.1
		Total SG&A expenses				226.1				222.1			1.8					3.0
		Earnings from operations				48.6				45.0			8.4
		Gross profit rate				15.5	%			15.2	%		0.3			pts.
		Expense rates:
			% of revenue			12.8				12.7			0.1
			% of gross profit			82.3				83.2			(0.9	)
		Return on sales				2.7				2.6			0.1
EMEA
	Commercial
		Revenue from services			$	374.0			$	458.9			(18.5	)%				(0.9	)%
		Staffing fee-based income included in revenue from services				6.7				9.8			(31.5	)				(13.8	)
		Gross profit				51.4				67.4			(23.8	)				(7.3	)
		Gross profit rate				13.7	%			14.7	%		(1.0	)		pts.
	PT
		Revenue from services			$	83.2			$	97.4			(14.5	)%				3.4	%
		Staffing fee-based income included in revenue from services				5.1				7.2			(29.5	)				(12.1	)
		Gross profit				17.8				22.4			(20.4	)				(2.8	)
		Gross profit rate				21.4	%			23.0	%		(1.6	)		pts.
	Total EMEA
		Revenue from services			$	457.2			$	556.3			(17.8	)%				(0.1	)%
		Staffing fee-based income included in revenue from services				11.8				17.0			(30.7	)				(13.1	)
		Gross profit				69.2				89.8			(23.0	)				(6.2	)
		SG&A expenses excluding restructuring charges				67.7				84.2			(19.6	)
		Restructuring charges				--				0.8			(100.0	)
		Total SG&A expenses				67.7				85.0			(20.3	)				(4.1	)
		Earnings from operations				1.5				4.8			(69.1	)
		Earnings from operations excluding restructuring charges				1.5				5.6			(73.5	)
		Gross profit rate				15.1	%			16.1	%		(1.0	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			14.8				15.1			(0.3	)
			% of gross profit			97.8				93.7			4.1
		Return on sales (excluding restructuring charges)				0.3				1.0			(0.7	)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					June Year to Date
																		Constant
																		Currency
					2015				2014				Change					Change
APAC
	Commercial
		Revenue from services			$	175.9			$	169.5			3.8	%				15.1	%
		Staffing fee-based income included in revenue from services				3.3				3.9			(16.2	)				(7.7	)
		Gross profit				24.2				24.0			0.9					11.6
		Gross profit rate				13.8	%			14.2	%		(0.4	)		pts.
	PT
		Revenue from services			$	20.8			$	18.6			12.1	%				25.4	%
		Staffing fee-based income included in revenue from services				3.1				3.8			(18.1	)				(10.3	)
		Gross profit				5.6				6.1			(7.6	)				2.2
		Gross profit rate				26.9	%			32.7	%		(5.8	)		pts.
	Total APAC
		Revenue from services			$	196.7			$	188.1			4.6	%				16.2	%
		Staffing fee-based income included in revenue from services				6.4				7.7			(17.1	)				(9.0	)
		Gross profit				29.8				30.1			(0.8	)				9.7
		SG&A expenses excluding restructuring charges				24.4				29.1			(16.3	)
		Restructuring charges				--				1.0			(100.0	)
		Total SG&A expenses				24.4				30.1			(19.2	)				(10.7	)
		Earnings from operations				5.4				--			NM
		Earnings from operations excluding restructuring charges				5.4				1.0			NM
		Gross profit rate				15.2	%			16.0	%		(0.8	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			12.4				15.5			(3.1	)
			% of gross profit			82.0				97.0			(15.0	)
		Return on sales (excluding restructuring charges)				2.7				0.5			2.2
OCG
		Revenue from services			$	314.5			$	272.3			15.5	%				17.1	%
		Gross profit				71.2				65.5			8.6					10.7
		Total SG&A expenses				64.9				62.5			3.8					6.4
		Earnings from operations				6.3				3.0			108.3
		Gross profit rate				22.6	%			24.1	%		(1.5	)		pts.
		Expense rates:
			% of revenue			20.6				22.9			(2.3	)
			% of gross profit			91.1				95.4			(4.3	)
		Return on sales				2.0				1.1			0.9

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
			June 28, 2015				Dec. 28, 2014				June 29, 2014
Current Assets
	Cash and equivalents		$	48.7			$	83.1			$	62.8
	Trade accounts receivable, less allowances of $9.4, $10.7 and $9.2, respectively			1,152.3				1,122.8				1,132.9
	Prepaid expenses and other current assets			50.6				47.9				57.6
	Deferred taxes			35.8				34.4				31.5
Total current assets				1,287.4				1,288.2				1,284.8
Property and Equipment, Net				88.6				93.0				91.4
Noncurrent Deferred Taxes				144.6				146.3				130.8
Goodwill, Net				90.3				90.3				90.3
Other Assets				321.7				300.1				295.7
Total Assets			$	1,932.6			$	1,917.9			$	1,893.0
Current Liabilities
	Short-term borrowings		$	89.9			$	91.9			$	89.5
	Accounts payable and accrued liabilities			380.4				364.0				328.4
	Accrued payroll and related taxes			296.5				308.5				300.5
	Accrued insurance			27.1				26.9				25.2
	Income and other taxes			62.8				68.8				74.9
Total current liabilities				856.7				860.1				818.5
Noncurrent Liabilities
	Accrued insurance			44.3				43.9				44.7
	Accrued retirement benefits			146.5				140.8				147.4
	Other long-term liabilities			40.6				39.4				41.9
Total noncurrent liabilities				231.4				224.1				234.0
Stockholders' Equity
	Common stock			40.1				40.1				40.1
	Treasury stock			(49.0	)			(49.8	)			(55.5	)
	Paid-in capital			27.5				24.9				29.0
	Earnings invested in the business			774.1				767.4				752.8
	Accumulated other comprehensive income			51.8				51.1				74.1
Total stockholders' equity				844.5				833.7				840.5
Total Liabilities and Stockholders' Equity			$	1,932.6			$	1,917.9			$	1,893.0
STATISTICS:
Working Capital			$	430.7			$	428.1			$	466.3
Current Ratio				1.5				1.5				1.6
Debt-to-capital %				9.6	%			9.9	%			9.6	%
Global Days Sales Outstanding				56				54				57

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars)
				2015				2014
Cash flows from operating activities:
	Net earnings			$	10.5			$	5.3
	Noncash adjustments:
		Depreciation and amortization			11.0				10.8
		Provision for bad debts			2.1				2.6
		Stock-based compensation			3.1				3.5
		Other, net			(0.3	)			0.7
	Changes in operating assets and liabilities				(52.9	)			(130.4	)
		Net cash used in operating activities			(26.5	)			(107.5	)
Cash flows from investing activities:
	Capital expenditures				(6.7	)			(8.9	)
	Investment in equity affiliate				(0.5	)			(5.4	)
	Other investing activities				(0.1	)			0.4
		Net cash used in investing activities			(7.3	)			(13.9	)
Cash flows from financing activities:
	Net change in short-term borrowings				(1.4	)			61.2
	Dividend payments				(3.8	)			(3.8	)
		Net cash (used in) from financing activities			(5.2	)			57.4
Effect of exchange rates on cash and equivalents					4.6				1.1
Net change in cash and equivalents					(34.4	)			(62.9	)
Cash and equivalents at beginning of period					83.1				125.7
Cash and equivalents at end of period				$	48.7			$	62.8

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			Second Quarter (Commercial, PT and OCG)
									% Change
												Constant
			2015			2014			US$			Currency
Americas
	United States		$	923.6		$	888.3		4.0	%		4.0	%
	Canada			41.6			49.6		(16.0	)		(5.5	)
	Mexico			32.0			34.6		(7.9	)		8.5
	Puerto Rico			26.6			27.6		(3.7	)		(3.7	)
	Brazil			9.9			13.7		(27.8	)		(1.5	)
Total Americas				1,033.7			1,013.8		2.0			3.4
EMEA
	France			60.9			69.3		(12.1	)		9.0
	Switzerland			54.6			66.7		(18.3	)		(13.4	)
	Portugal			33.9			32.5		4.2			29.0
	United Kingdom			27.1			28.4		(4.3	)		5.2
	Russia			22.2			32.8		(32.3	)		1.7
	Germany			14.3			16.5		(13.3	)		7.5
	Italy			13.0			16.6		(21.8	)		(3.3	)
	Norway			10.0			14.4		(31.0	)		(10.8	)
	Other			10.3			18.0		(42.9	)		(29.3	)
Total EMEA				246.3			295.2		(16.6	)		0.9
APAC
	Singapore			33.0			31.1		6.3			14.0
	Australia			32.9			30.0		9.5			31.3
	Malaysia			15.9			16.8		(5.1	)		7.2
	New Zealand			10.3			13.2		(21.9	)		(8.3	)
	Other			12.9			10.4		24.3			33.1
Total APAC				105.0			101.5		3.6			17.1
Total Kelly Services, Inc.			$	1,385.0		$	1,410.5		(1.8	)%		3.9	%

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			June Year to Date (Commercial, PT and OCG)
									% Change
												Constant
			2015			2014			US$			Currency
Americas
	United States		$	1,806.6		$	1,728.2		4.5	%		4.5	%
	Canada			84.3			96.3		(12.4	)		1.7
	Mexico			63.9			65.3		(2.3	)		12.8
	Puerto Rico			51.4			52.7		(2.3	)		(2.3	)
	Brazil			23.8			29.6		(19.6	)		(1.2	)
Total Americas				2,030.0			1,972.1		2.9			4.2
EMEA
	France			117.3			132.1		(11.3	)		8.8
	Switzerland			102.7			129.0		(20.4	)		(15.4	)
	Portugal			65.2			59.1		10.3			35.4
	United Kingdom			50.7			56.2		(9.7	)		(1.1	)
	Russia			40.4			67.7		(40.3	)		(2.5	)
	Germany			27.7			33.2		(16.5	)		2.2
	Italy			25.5			31.5		(18.9	)		(0.6	)
	Norway			19.4			28.8		(32.9	)		(13.9	)
	Other			21.3			35.1		(39.4	)		(25.7	)
Total EMEA				470.2			572.7		(17.9	)		(0.4	)
APAC
	Singapore			64.3			61.4		4.8			12.1
	Australia			63.3			56.5		12.0			31.2
	Malaysia			31.4			33.3		(5.9	)		4.8
	New Zealand			20.8			25.5		(18.4	)		(6.8	)
	Other			25.6			19.8		29.3			34.8
Total APAC				205.4			196.5		4.5			16.2
Total Kelly Services, Inc.			$	2,705.6		$	2,741.3		(1.3	)%		4.1	%

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
			2015										2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings			Adjusted Earnings			% Change
Revenue from services			$	1,385.0		$	--			$	1,385.0		$	1,410.5		(1.8	)%
Cost of services				1,162.7			--				1,162.7			1,182.4		(1.7	)
Gross profit				222.3			--				222.3			228.1		(2.5	)
SG&A expenses				210.8			--				210.8			220.4		(4.4	)
Earnings from operations				11.5			--				11.5			7.7		50.7
Other expense, net				1.0			--				1.0			0.3		276.3
Earnings before taxes				10.5			--				10.5			7.4		42.8
Inc. tax expense (benefit)				3.7			--				3.7			3.4		9.1
Net earnings			$	6.8		$	--			$	6.8		$	4.0		71.7	%
Earnings per share:
	Basic		$	0.18		$	--			$	0.18		$	0.10		80.0	%
	Diluted		$	0.18		$	--			$	0.18		$	0.10		80.0	%
			2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings
Revenue from services			$	1,410.5		$	--			$	1,410.5
Cost of services				1,182.4			--				1,182.4
Gross profit				228.1			--				228.1
SG&A expenses				222.2			(1.8	)			220.4
Earnings from operations				5.9			1.8				7.7
Other expense, net				0.3			--				0.3
Earnings before taxes				5.6			1.8				7.4
Inc. tax expense (benefit)				2.8			0.6				3.4
Net earnings			$	2.8		$	1.2			$	4.0
Earnings per share:
	Basic		$	0.07		$	0.03			$	0.10
	Diluted		$	0.07		$	0.03			$	0.10
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 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
			2015										2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings			Adjusted Earnings			% Change
Revenue from services			$	2,705.6		$	--			$	2,705.6		$	2,741.3		(1.3	)%
Cost of services				2,263.0			--				2,263.0			2,290.9		(1.2	)
Gross profit				442.6			--				442.6			450.4		(1.7	)
SG&A expenses				419.0			--				419.0			436.4		(4.0	)
Earnings from operations				23.6			--				23.6			14.0		70.2
Other expense, net				3.5			--				3.5			2.0		82.2
Earnings before taxes				20.1			--				20.1			12.0		68.2
Inc. tax expense (benefit)				9.6			--				9.6			5.5		74.9
Net earnings			$	10.5		$	--			$	10.5		$	6.5		62.6	%
Earnings per share:
	Basic		$	0.27		$	--			$	0.27		$	0.17		58.8	%
	Diluted		$	0.27		$	--			$	0.27		$	0.17		58.8	%
			2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings
Revenue from services			$	2,741.3		$	--			$	2,741.3
Cost of services				2,290.9			--				2,290.9
Gross profit				450.4			--				450.4
SG&A expenses				438.2			(1.8	)			436.4
Earnings from operations				12.2			1.8				14.0
Other expense, net				2.0			--				2.0
Earnings before taxes				10.2			1.8				12.0
Inc. tax expense (benefit)				4.9			0.6				5.5
Net earnings			$	5.3		$	1.2			$	6.5
Earnings per share:
	Basic		$	0.14		$	0.03			$	0.17
	Diluted		$	0.14		$	0.03			$	0.17
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

(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges is useful to understand the Company's fiscal 2015 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 in 2014 relate to costs incurred for exiting the staffing business in Sweden and closing branches in Australia.

Source: Kelly Services

 

 

News Provided by Acquire Media