Press Release Details

 

TROY, MI -- (Marketwired) -- 11/04/15 -- Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB)

Quarterly Highlights

• Earnings from operations up 51%, excluding restructuring (up 72% in constant currency)
• Earnings per share of $0.23 versus $0.10, excluding restructuring, a 130% increase year-over-year
• OCG segment revenue up 15% year-over-year (up 17% in constant currency)
• Total Company revenue down 3% year-over-year (up 3% in constant currency)

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

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2015 totaled $1.4 billion, a 3% decrease (a 3% increase on a constant currency basis) compared to the corresponding quarter of 2014.

Earnings from operations for the third quarter of 2015 totaled $16.6 million, compared to $7.1 million reported for the third quarter of 2014. Included in the results of operations in the third quarter of 2014 are restructuring charges of $4.0 million. Excluding the restructuring charges, earnings from operations were $11.1 million in the third quarter of 2014.

Diluted earnings per share in the third quarter of 2015 were $0.23 compared to $0.03 per share in the third quarter of 2014. Adjusted earnings per share were $0.10 in the third quarter of 2014. Included in the third quarter of 2015 was a foreign exchange impact of $0.06 per share.

Commenting on the third quarter, Camden stated, "Our third quarter results confirm that Kelly is operating as a more efficient organization, delivering both top-line growth and operating leverage. Excluding the 2014 restructuring charges, we dropped nearly 50% of our constant currency GP growth to the bottom line during the quarter; our 2014 investments in PT and OCG are continuing to yield results; and we're expanding Kelly's role as a trusted talent advisor to many of the world's top companies."

Kelly also reported that on November 3, its board of directors declared a dividend of $0.05 per share. The dividend is payable December 4 to shareholders of record as of the close of business on November 16.

In conjunction with its third quarter earnings release, Kelly Services has published a financial presentation regarding the third quarter results on the Investor Relations page of our public website and will host a conference call at 9:00 a.m. (ET) on November 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, 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, 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 SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
																%			CC %
			2015				2014				Change					Change			Change
Revenue from services			$	1,351.0			$	1,396.4			$	(45.4	)			(3.2	)%		3.0	%
Cost of services				1,122.8				1,171.0				(48.2	)			(4.1	)
Gross profit				228.2				225.4				2.8				1.3			7.2
Selling, general and administrative expenses				211.6				218.3				(6.7	)			(3.0	)		2.0
Earnings from operations				16.6				7.1				9.5				134.9
Other expense, net				--				2.2				(2.2	)			(97.7	)
Earnings before taxes				16.6				4.9				11.7				242.2
Income tax expense				7.5				3.5				4.0				112.6
Net earnings			$	9.1			$	1.4			$	7.7				NM	%
Basic earnings per share			$	0.23			$	0.03			$	0.20				NM	%
Diluted earnings per share			$	0.23			$	0.03			$	0.20				NM	%
STATISTICS:
Gross profit rate				16.9	%			16.1	%			0.8			pts.
Selling, general and administrative expenses:
	% of revenue			15.7				15.6				0.1
	% of gross profit			92.7				96.9				(4.2	)
% Return:
Earnings from operations				1.2				0.5				0.7
Earnings before taxes				1.2				0.3				0.9
Net earnings				0.7				0.1				0.6
Effective income tax rate				45.2	%			72.7	%			(27.5	)		pts.
Average number of shares outstanding (millions):
	Basic			37.9				37.6
	Diluted			37.9				37.6
Shares adjusted for nonvested restricted awards (millions):
	Basic			38.8				38.5
	Diluted			38.8				38.5

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
																%			CC %
			2015				2014				Change					Change			Change
Revenue from services			$	4,056.6			$	4,137.7			$	(81.1	)			(2.0	)%		3.7	%
Cost of services				3,385.8				3,461.9				(76.1	)			(2.2	)
Gross profit				670.8				675.8				(5.0	)			(0.7	)		4.6
Selling, general and administrative expenses				630.6				656.5				(25.9	)			(4.0	)		0.9
Earnings from operations				40.2				19.3				20.9				110.9
Other expense, net				3.5				4.2				(0.7	)			(14.5	)
Earnings before taxes				36.7				15.1				21.6				145.7
Income tax expense				17.1				8.4				8.7				104.4
Net earnings			$	19.6			$	6.7			$	12.9				198.2	%
Basic earnings per share			$	0.51			$	0.17			$	0.34				200.0	%
Diluted earnings per share			$	0.51			$	0.17			$	0.34				200.0	%
STATISTICS:
Gross profit rate				16.5	%			16.3	%			0.2			pts.
Selling, general and administrative expenses:
	% of revenue			15.5				15.9				(0.4	)
	% of gross profit			94.0				97.2				(3.2	)
% Return:
	Earnings from operations			1.0				0.5				0.5
	Earnings before taxes			0.9				0.4				0.5
	Net earnings			0.5				0.2				0.3
Effective income tax rate				46.5	%			55.9	%			(9.4	)		pts.
Average number of shares outstanding (millions):
	Basic			37.8				37.5
	Diluted			37.8				37.5
Shares adjusted for nonvested restricted awards (millions):
	Basic			38.8				38.5
	Diluted			38.8				38.5

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					Third Quarter
																Constant
																Currency
					2015				2014				Change			Change
AMERICAS
	Commercial
		Revenue from services			$	615.5			$	640.8			(4.0	)%		(1.1)	%
		Staffing fee-based income included in revenue from services				3.8				3.8			(0.1	)		2.8
		Gross profit				96.6				91.7			5.4			7.9
		Gross profit rate				15.7	%			14.3	%		1.4		pts.
	PT
		Revenue from services			$	242.8			$	242.5			0.1	%		0.6	%
		Staffing fee-based income included in revenue from services				4.7				4.4			8.6			9.7
		Gross profit				41.0				39.6			3.6			4.1
		Gross profit rate				16.9	%			16.3	%		0.6		pts.
	Total Americas
		Revenue from services			$	858.3			$	883.3			(2.8	)%		(0.6)	%
		Staffing fee-based income included in revenue from services				8.5				8.2			4.6			6.5
		Gross profit				137.6				131.3			4.8			6.7
		Total SG&A expenses				113.7				110.8			2.6			4.5
		Earnings from operations				23.9				20.5			16.9
	Gross profit rate					16.0	%			14.9	%		1.1		pts.
	Expense rates:
		% of revenue				13.2				12.5			0.7
		% of gross profit				82.7				84.5			(1.8	)
	Return on sales					2.8				2.3			0.5
EMEA
	Commercial
		Revenue from services			$	199.0			$	231.3			(13.9	)%		2.6	%
		Staffing fee-based income included in revenue from services				3.2				4.2			(23.6	)		(4.5	)
		Gross profit				27.7				33.6			(17.4	)		(1.4	)
		Gross profit rate				13.9	%			14.5	%		(0.6	)	pts.
	PT
		Revenue from services			$	43.6			$	48.1			(9.3	)%		7.5	%
		Staffing fee-based income included in revenue from services				2.6				3.5			(24.1	)		(6.2	)
		Gross profit				9.4				10.9			(13.3	)		4.6
		Gross profit rate				21.6	%			22.6	%		(1.0	)	pts.
	Total EMEA
		Revenue from services			$	242.6			$	279.4			(13.1	)%		3.5	%
		Staffing fee-based income included in revenue from services				5.8				7.7			(23.8	)		(5.3	)
		Gross profit				37.1				44.5			(16.4	)		0.1
		Total SG&A expenses				31.8				40.0			(20.7	)		(6.2	)
		Earnings from operations				5.3				4.5			22.4
		Gross profit rate				15.3	%			15.9	%		(0.6	)	pts.
		Expense rates:
			% of revenue			13.1				14.3			(1.2	)
			% of gross profit			85.4				90.0			(4.6	)
		Return on sales				2.2				1.6			0.6

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					Third Quarter
																	Constant
																	Currency
					2015				2014				Change				Change
APAC
	Commercial
		Revenue from services			$	83.2			$	91.0			(8.5	)%			9.2	%
		Staffing fee-based income included in revenue from services				1.4				2.0			(28.5	)			(16.7	)
		Gross profit				10.7				11.7			(8.5	)			9.1
		Gross profit rate				12.8	%			12.8	%		--			pts.
	PT
		Revenue from services			$	9.9			$	10.6			(6.4	)%			11.8	%
		Staffing fee-based income included in revenue from services				1.3				2.0			(34.3	)			(22.6	)
		Gross profit				2.5				3.3			(24.6	)			(10.8	)
		Gross profit rate				25.4	%			31.5	%		(6.1	)		pts.
	Total APAC
		Revenue from services			$	93.1			$	101.6			(8.3	)%			9.5	%
		Staffing fee-based income included in revenue from services				2.7				4.0			(31.4	)			(19.7	)
		Gross profit				13.2				15.0			(12.1	)			4.7
		SG&A expenses excluding restructuring charges				11.1				14.2			(21.6	)
		Restructuring charges				--				0.3			(100.0	)
		Total SG&A expenses				11.1				14.5			(23.2	)			(8.8	)
		Earnings from operations				2.1				0.5			297.9
		Earnings from operations excluding restructuring charges				2.1				0.8			154.9
		Gross profit rate				14.2	%			14.8	%		(0.6	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			11.9				14.0			(2.1	)
			% of gross profit			84.3				94.6			(10.3	)
		Return on sales (excluding restructuring charges)				2.2				0.8			1.4
OCG
		Revenue from services			$	171.8			$	149.8			14.7	%			16.8	%
		Gross profit				41.4				35.8			15.5				18.4
		Total SG&A expenses				33.2				32.2			3.2				6.3
		Earnings from operations				8.2				3.6			123.7
		Gross profit rate				24.1	%			23.9	%		0.2			pts.
		Expense rates:
			% of revenue			19.3				21.5			(2.2	)
			% of gross profit			80.2				89.8			(9.6	)
		Return on sales				4.8				2.4			2.4

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					September Year to Date
																	Constant
																	Currency
					2015				2014				Change				Change
AMERICAS
	Commercial
		Revenue from services			$	1,908.2			$	1,915.1			(0.4	)%			1.8	%
		Staffing fee-based income included in revenue from services				10.8				10.4			3.4				6.0
		Gross profit				290.3				280.0			3.7				5.6
		Gross profit rate				15.2	%			14.6	%		0.6			pts.
	PT
		Revenue from services			$	721.8			$	723.1			(0.2	)%			0.2	%
		Staffing fee-based income included in revenue from services				13.1				11.7			11.7				12.6
		Gross profit				122.0				118.4			3.1				3.6
		Gross profit rate				16.9	%			16.4	%		0.5			pts.
	Total Americas
		Revenue from services			$	2,630.0			$	2,638.2			(0.3	)%			1.4	%
		Staffing fee-based income included in revenue from services				23.9				22.1			7.7				9.5
		Gross profit				412.3				398.4			3.5				5.0
		Total SG&A expenses				339.8				332.9			2.0				3.5
		Earnings from operations				72.5				65.5			11.0
		Gross profit rate				15.7	%			15.1	%		0.6			pts.
		Expense rates:
			% of revenue			12.9				12.6			0.3
			% of gross profit			82.4				83.6			(1.2	)
		Return on sales				2.8				2.5			0.3
EMEA
	Commercial
		Revenue from services			$	573.0			$	690.2			(17.0	)%			0.3	%
		Staffing fee-based income included in revenue from services				9.9				14.0			(29.2	)			(11.0	)
		Gross profit				79.1				101.0			(21.7	)			(5.4	)
		Gross profit rate				13.8	%			14.6	%		(0.8	)		pts.
	PT
		Revenue from services			$	126.8			$	145.5			(12.8	)%			4.7	%
		Staffing fee-based income included in revenue from services				7.7				10.7			(27.7	)			(10.2	)
		Gross profit				27.2				33.3			(18.1	)			(0.4	)
		Gross profit rate				21.5	%			22.8	%		(1.3	)		pts.
	Total EMEA
		Revenue from services			$	699.8			$	835.7			(16.3	)%			1.1	%
		Staffing fee-based income included in revenue from services				17.6				24.7			(28.5	)			(10.7	)
		Gross profit				106.3				134.3			(20.8	)			(4.1	)
		SG&A expenses excluding restructuring charges				99.5				124.2			(19.9	)
		Restructuring charges				--				0.8			(100.0	)
		Total SG&A expenses				99.5				125.0			(20.4	)			(4.7	)
		Earnings from operations				6.8				9.3			(25.5	)
		Earnings from operations excluding restructuring charges				6.8				10.1			(31.5	)
		Gross profit rate				15.2	%			16.1	%		(0.9	)		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			14.2				14.9			(0.7	)
			% of gross profit			93.5				92.5			1.0
		Return on sales (excluding restructuring charges)				1.0				1.2			(0.2	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
					September Year to Date
																	Constant
																	Currency
					2015				2014				Change				Change
APAC
	Commercial
		Revenue from services			$	259.1			$	260.5			(0.5	)%			13.1	%
		Staffing fee-based income included in revenue from services				4.7				5.9			(20.3	)			(10.8	)
		Gross profit				34.9				35.7			(2.2	)			10.8
		Gross profit rate				13.5	%			13.7	%		(0.2	)		pts.
	PT
		Revenue from services			$	30.7			$	29.2			5.4	%			20.5	%
		Staffing fee-based income included in revenue from services				4.4				5.8			(23.7	)			(14.6	)
		Gross profit				8.1				9.4			(13.6	)			(2.4	)
		Gross profit rate				26.4	%			32.2	%		(5.8	)		pts.
	Total APAC
		Revenue from services			$	289.8			$	289.7			0.1	%			13.8	%
		Staffing fee-based income included in revenue from services				9.1				11.7			(22.0	)			(12.7	)
		Gross profit				43.0				45.1			(4.6	)			8.0
		SG&A expenses excluding restructuring charges				35.5				43.3			(18.0	)
		Restructuring charges				--				1.3			(100.0	)
		Total SG&A expenses				35.5				44.6			(20.5	)			(10.1	)
		Earnings from operations				7.5				0.5			NM
		Earnings from operations excluding restructuring charges				7.5				1.8			338.5
		Gross profit rate				14.8	%			15.6	%		(0.8	)%		pts.
		Expense rates (excluding restructuring charges):
			% of revenue			12.3				15.0			(2.7	)
			% of gross profit			82.7				96.2			(13.5	)
		Return on sales (excluding restructuring charges)				2.6				0.6			2.0
OCG
		Revenue from services			$	486.3			$	422.1			15.2	%			17.0	%
		Gross profit				112.6				101.3			11.1				13.4
		Total SG&A expenses				98.1				94.7			3.6				6.4
		Earnings from operations				14.5				6.6			116.7
		Gross profit rate				23.1	%			24.0	%		(0.9	)		pts.
		Expense rates:
			% of revenue			20.2				22.4			(2.2	)
			% of gross profit			87.1				93.4			(6.3	)
		Return on sales				3.0				1.6			1.4

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
			September 27, 2015				December 28, 2014				September 28, 2014
Current Assets
	Cash and equivalents		$	44.9			$	83.1			$	51.6
	Trade accounts receivable, less allowances of $9.7, $10.7 and $9.2, respectively			1,160.3				1,122.8				1,158.1
	Prepaid expenses and other current assets			49.0				47.9				56.8
	Deferred taxes			35.0				34.4				28.9
Total current assets				1,289.2				1,288.2				1,295.4
Property and Equipment, Net				88.3				93.0				91.1
Noncurrent Deferred Taxes				140.8				146.3				132.7
Goodwill, Net				90.3				90.3				90.3
Other Assets				341.3				300.1				291.5
Total Assets			$	1,949.9			$	1,917.9			$	1,901.0
Current Liabilities
	Short-term borrowings		$	76.8			$	91.9			$	88.7
	Accounts payable and accrued liabilities			385.2				364.0				339.0
	Accrued payroll and related taxes			312.8				308.5				318.6
	Accrued insurance			25.9				26.9				24.4
	Income and other taxes			59.5				68.8				74.0
Total current liabilities				860.2				860.1				844.7
Noncurrent Liabilities
Accrued insurance				42.2				43.9				43.4
Accrued retirement benefits				139.5				140.8				146.6
Other long-term liabilities				48.4				39.4				40.7
Total noncurrent liabilities				230.1				224.1				230.7
Stockholders' Equity
	Common stock			40.1				40.1				40.1
	Treasury stock			(46.9	)			(49.8	)			(52.5	)
	Paid-in capital			26.7				24.9				26.7
	Earnings invested in the business			781.3				767.4				752.3
	Accumulated other comprehensive income			58.4				51.1				59.0
Total stockholders' equity				859.6				833.7				825.6
Total Liabilities and Stockholders' Equity			$	1,949.9			$	1,917.9			$	1,901.0
STATISTICS:
	Working Capital		$	429.0			$	428.1			$	450.7
	Current Ratio			1.5				1.5				1.5
	Debt-to-capital %			8.2	%			9.9	%			9.7	%
	Global Days Sales Outstanding			57				54				58

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars)
				2015				2014
Cash flows from operating activities:
	Net earnings			$	19.6			$	6.7
	Noncash adjustments:
		Depreciation and amortization			16.6				16.2
		Provision for bad debts			3.3				3.6
		Stock-based compensation			4.6				4.1
		Other, net			(0.7	)			1.3
	Changes in operating assets and liabilities				(44.9	)			(140.9	)
		Net cash used in operating activities			(1.5	)			(109.0	)
Cash flows from investing activities:
	Capital expenditures				(12.3	)			(15.0	)
	Investment in equity affiliate				(0.5	)			(5.4	)
	Other investing activities				(0.4	)			0.2
		Net cash used in investing activities			(13.2	)			(20.2	)
Cash flows from financing activities:
	Net change in short-term borrowings				(13.8	)			60.4
	Dividend payments				(5.7	)			(5.7	)
	Other financing activities				0.2				0.4
		Net cash (used in) from financing activities			(19.3	)			55.1
Effect of exchange rates on cash and equivalents					(4.2	)			--
Net change in cash and equivalents					(38.2	)			(74.1	)
Cash and equivalents at beginning of period					83.1				125.7
Cash and equivalents at end of period				$	44.9			$	51.6

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			Third Quarter (Commercial, PT and OCG)
									% Change
												Constant
			2015			2014			US$			Currency
Americas
	United States		$	899.8		$	873.7		3.0	%		3.0	%
	Canada			37.9			51.9		(27.0	)		(12.6	)
	Mexico			31.3			37.0		(15.2	)		6.1
	Puerto Rico			23.8			25.7		(7.5	)		(7.5	)
	Brazil			10.4			13.6		(23.5	)		11.4
Total Americas				1,003.2			1,001.9		0.1			2.1
EMEA
	France			63.1			70.1		(10.0	)		7.4
	Switzerland			58.0			66.7		(13.0	)		(8.2	)
	Portugal			33.5			33.3		0.8			20.2
	United Kingdom			27.7			26.2		5.7			14.0
	Russia			17.0			28.7		(40.6	)		2.9
	Germany			15.4			17.5		(12.1	)		4.8
	Italy			14.0			14.8		(5.5	)		12.6
	Norway			10.1			14.8		(31.8	)		(10.5	)
	Other			11.5			15.8		(27.1	)		(13.2	)
Total EMEA				250.3			287.9		(13.1	)		3.5
APAC
	Singapore			32.6			33.4		(2.3	)		8.5
	Australia			28.8			32.3		(10.7	)		13.8
	Malaysia			14.0			16.7		(16.1	)		6.0
	New Zealand			9.4			12.7		(26.4	)		(4.7	)
	Other			12.7			11.5		10.4			20.9
Total APAC				97.5			106.6		(8.5	)		9.5
Total Kelly Services, Inc.			$	1,351.0		$	1,396.4		(3.2)	%		3.0	%

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			September Year to Date (Commercial, PT and OCG)
									% Change
												Constant
			2015			2014			US$			Currency
Americas
	United States		$	2,706.4		$	2,601.9		4.0	%		4.0	%
	Canada			122.2			148.2		(17.5	)		(5.5	)
	Mexico			95.2			102.3		(6.9	)		10.4
	Puerto Rico			75.2			78.4		(4.0	)		(4.0	)
	Brazil			34.2			43.2		(20.8	)		2.8
Total Americas				3,033.2			2,974.0		2.0			3.5
EMEA
	France			180.4			202.2		(10.8	)		8.4
	Switzerland			160.7			195.7		(17.9	)		(12.9	)
	Portugal			98.7			92.4		6.9			29.9
	United Kingdom			78.4			82.4		(4.8	)		3.7
	Russia			57.4			96.4		(40.4	)		(0.9	)
	Germany			43.1			50.7		(15.0	)		3.1
	Italy			39.5			46.3		(14.6	)		3.6
	Norway			29.5			43.6		(32.5	)		(12.8	)
	Other			32.8			50.9		(35.6	)		(21.8	)
Total EMEA				720.5			860.6		(16.3	)		0.9
APAC
	Singapore			96.9			94.8		2.3			10.9
	Australia			92.1			88.8		3.8			24.8
	Malaysia			45.4			50.0		(9.3	)		5.2
	New Zealand			30.2			38.2		(21.1	)		(6.1	)
	Other			38.3			31.3		22.4			29.7
Total APAC				302.9			303.1		(0.1	)		13.8
Total Kelly Services, Inc.			$	4,056.6		$	4,137.7		(2.0)	%		3.7	%

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 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			$	1,351.0		$	--			$	1,351.0		$	1,396.4		(3.2)	%
Cost of services				1,122.8			--				1,122.8			1,171.0		(4.1	)
Gross profit				228.2			--				228.2			225.4		1.3
SG&A expenses				211.6			--				211.6			214.3		(1.2	)
Earnings from operations				16.6			--				16.6			11.1		50.7
Other expense, net				--			--				--			2.2		(97.7	)
Earnings before taxes				16.6			--				16.6			8.9		88.3
Inc. tax expense (benefit)				7.5			--				7.5			5.0		48.8
Net earnings			$	9.1		$	--			$	9.1		$	3.9		141.1	%
Earnings per share:
	Basic		$	0.23		$	--			$	0.23		$	0.10		130.0	%
	Diluted		$	0.23		$	--			$	0.23		$	0.10		130.0	%
			2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings
Revenue from services			$	1,396.4		$	--			$	1,396.4
Cost of services				1,171.0			--				1,171.0
Gross profit				225.4			--				225.4
SG&A expenses				218.3			(4.0	)			214.3
Earnings from operations				7.1			4.0				11.1
Other expense, net				2.2			--				2.2
Earnings before taxes				4.9			4.0				8.9
Inc. tax expense (benefit)				3.5			1.5				5.0
Net earnings			$	1.4		$	2.5			$	3.9
Earnings per share:
	Basic		$	0.03		$	0.06			$	0.10
	Diluted		$	0.03		$	0.06			$	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 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 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			$	4,056.6		$	--			$	4,056.6		$	4,137.7		(2.0)	%
Cost of services				3,385.8			--				3,385.8			3,461.9		(2.2	)
Gross profit				670.8			--				670.8			675.8		(0.7	)
SG&A expenses				630.6			--				630.6			650.7		(3.1	)
Earnings from operations				40.2			--				40.2			25.1		61.6
Other expense, net				3.5			--				3.5			4.2		(14.5	)
Earnings before taxes				36.7			--				36.7			20.9		76.7
Inc. tax expense (benefit)				17.1			--				17.1			10.5		62.4
Net earnings			$	19.6		$	--			$	19.6		$	10.4		91.4	%
Earnings per share:
	Basic		$	0.51		$	--			$	0.51		$	0.27		88.9	%
	Diluted		$	0.51		$	--			$	0.51		$	0.27		88.9	%
			2014
			As reported			Restructuring Charges (Note 1)				Adjusted Earnings
Revenue from services			$	4,137.7		$	--			$	4,137.7
Cost of services				3,461.9			--				3,461.9
Gross profit				675.8			--				675.8
SG&A expenses				656.5			(5.8	)			650.7
Earnings from operations				19.3			5.8				25.1
Other expense, net				4.2			--				4.2
Earnings before taxes				15.1			5.8				20.9
Inc. tax expense (benefit)				8.4			2.1				10.5
Net earnings			$	6.7		$	3.7			$	10.4
Earnings per share:
	Basic		$	0.17		$	0.10			$	0.27
	Diluted		$	0.17		$	0.10			$	0.27

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 include 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.

Source: Kelly Services

 

 

News Provided by Acquire Media