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Form 8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): January 31, 2007

 

 

 

KELLY SERVICES, INC.

 

  
 

 

(Exact name of Registrant as specified in its charter)

  

 

DELAWARE

 

    

0-1088

 

    

38-1510762

 

 

(State or other

jurisdiction of

incorporation)

    

 

(Commission

File Number)

    

 

(IRS Employer

Identification

Number)

 

 

 

999 WEST BIG BEAVER ROAD, TROY, MICHIGAN 48084

 

   
 

 

(Address of principal executive offices)

   
  (Zip Code)   
 

(248) 362-4444

 

   
 

 

(Registrant’s telephone number, including area code)

   

 

 

  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ]    Written communications pursuant to Rule 425 under the Securities Act

         (17 CFR 230.425)

 

[  ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act

         (17 CFR 240.14a-12)

 

[  ]    Pre-commencement communications pursuant to Rule 14d-2(b) under

         the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]    Pre-commencement communications pursuant to Rule 13e-4(c) under

         the Exchange Act (17 CFR 240.13e-4(c))

   

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Item 7.01.    Regulation FD Disclosure

Kelly Services, Inc. (the “Company”) today posted additional annual and quarterly information for the recently completed fiscal year ended December 31, 2006, along with quarterly and annual information for the 2005 fiscal year, on the Investor Relations page of the Company’s website. The information has been revised to reflect the sale of Kelly Staff Leasing, which is now classified as a discontinued operation. The website may be accessed at www.kellyservices.com.

Copies of the schedules are attached as exhibits 99.1 through 99.4 herein.

Item 9.01.    Financial Statements and Exhibits

(d) Exhibits

      99.1    2006 Results of Operations

      99.2    2005 Results of Operations

      99.3    2006 Results of Operations by Segment

      99.4    2005 Results of Operations by Segment

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

  KELLY SERVICES, INC.
Date: January 31, 2007  
  /s/ William K. Gerber
  William K. Gerber
  Executive Vice President and
  Chief Financial Officer
  (Principal Financial Officer)
Date: January 31, 2007  
  /s/ Michael E. Debs
  Michael E. Debs
  Senior Vice President and Corporate Controller
  (Principal Accounting Officer)

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EXHIBIT INDEX

 

Exhibit No.                          Description          
    99.1    2006 Results of Operations
    99.2    2005 Results of Operations
    99.3    2006 Results of Operations by Segment
    99.4    2005 Results of Operations by Segment
2006 Results of Operations

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Exhibit 99.1

KELLY SERVICES, INC. AND SUBSIDIARIES

2006 RESULTS OF OPERATIONS

(In thousands of dollars except per share data)

 

     First
Quarter		    Second
Quarter		    Third
Quarter		    Fourth
Quarter		    Full
Year

Revenue from services

    $ 1,350,325    $ 1,407,855    $ 1,411,582    $ 1,435,990    $ 5,605,752

Cost of services

      1,132,912      1,179,691      1,176,213      1,191,722      4,680,538
                                  

Gross profit

      217,413      228,164      235,369      244,268      925,214

Selling, general and administrative expenses

      204,659      207,672      212,236      221,631      846,198
                                  

Earnings from operations

      12,754      20,492      23,133      22,637      79,016

Other income (expense), net

      40      465      348      618      1,471
                                  

Earnings from continuing operations before taxes

      12,794      20,957      23,481      23,255      80,487

Income taxes

      4,648      8,788      6,953      2,723      23,112
                                  

Earnings from continuing operations

      8,146      12,169      16,528      20,532      57,375

Earnings from discontinued operations, net of tax

      412      504      1,290      3,910      6,116
                                  

Net earnings

    $ 8,558    $ 12,673    $ 17,818    $ 24,442    $ 63,491
                                  

Basic earnings per share

               

Earnings from continuing operations

    $ 0.23    $ 0.34    $ 0.46    $ 0.57    $ 1.59

Earnings from discontinued operations

      0.01      0.01      0.03      0.11      0.17
                                  

Net earnings

    $ 0.24    $ 0.35    $ 0.49    $ 0.68    $ 1.76
                                  

Diluted earnings per share

               

Earnings from continuing operations

    $ 0.23    $ 0.34    $ 0.46    $ 0.56    $ 1.58

Earnings from discontinued operations

      0.01      0.01      0.03      0.11      0.17
                                  

Net earnings

    $ 0.24    $ 0.35    $ 0.49    $ 0.67    $ 1.75
                                  
2005 Results of Operations

6

 

Exhibit 99.2

KELLY SERVICES, INC. AND SUBSIDIARIES

2005 RESULTS OF OPERATIONS

(In thousands of dollars except per share data)

 

     First
Quarter		     Second
Quarter		     Third
Quarter		    Fourth
Quarter		     Full
Year		  

Revenue from services

    $ 1,238,416     $ 1,302,593     $ 1,335,736    $ 1,374,967     $ 5,251,712  

Cost of services

      1,036,358       1,090,446       1,119,730      1,156,084       4,402,618  
                                       

Gross profit

      202,058       212,147       216,006      218,883       849,094  

Selling, general and administrative expenses

      196,516       199,343       199,733      202,221       797,813  
                                       

Earnings from operations

      5,542       12,804       16,273      16,662       51,281  

Other income (expense), net

      (35 )     (152 )     10      (10 )     (187 )
                                       

Earnings from continuing operations before taxes

      5,507       12,652       16,283      16,652       51,094  

Income taxes

      1,908       3,811       4,254      4,840       14,813  
                                       

Earnings from continuing operations

      3,599       8,841       12,029      11,812       36,281  

Earnings from discontinued operations, net of tax

      339       492       646      1,505       2,982  
                                       

Net earnings

    $ 3,938     $ 9,333     $ 12,675    $ 13,317     $ 39,263  
                                       

Basic earnings per share

            

Earnings from continuing operations

    $ 0.10     $ 0.25     $ 0.33    $ 0.33     $ 1.02  

Earnings from discontinued operations

      0.01       0.01       0.02      0.04       0.08  
                                       

Net earnings

    $ 0.11     $ 0.26     $ 0.35    $ 0.37     $ 1.10  
                                       

Diluted earnings per share

            

Earnings from continuing operations

    $ 0.10     $ 0.25     $ 0.33    $ 0.33     $ 1.01  

Earnings from discontinued operations

      0.01       0.01       0.02      0.04       0.08  
                                       

Net earnings

    $ 0.11     $ 0.26     $ 0.35    $ 0.37     $ 1.09  
                                       
2006 Results of Operations by Segment

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Exhibit 99.3

KELLY SERVICES, INC.

2006 RESULTS OF OPERATIONS BY SEGMENT

(In thousands of dollars)

 

     First
Qtr.		     Second
Qtr.		     Third
Qtr.		     Fourth
Qtr.		     Full
Year		  

Revenue from Services:

           

U.S. Commercial Staffing

    $ 618,843     $ 639,213     $ 625,241     $ 641,175     $ 2,524,472  

PTSA

      288,749       284,531       280,370       284,138       1,137,788  

International

      442,733       484,111       505,971       510,677       1,943,492  
                                        

Consolidated Total

    $ 1,350,325     $ 1,407,855     $ 1,411,582     $ 1,435,990     $ 5,605,752  
                                        

Gross Profit Rate:

           

U.S. Commercial Staffing

      15.1 %     15.3 %     15.6 %     16.0 %     15.5 %

PTSA

      17.2       17.1       18.2       18.5       17.7  

International

      16.7       16.9       17.2       17.4       17.1  

Consolidated Total

      16.1 %     16.2 %     16.7 %     17.0 %     16.5 %
                                        

Expense Rate:

           

U.S. Commercial Staffing

      10.4 %     10.0 %     10.4 %     10.3 %     10.3 %

PTSA

      10.7       10.9       11.5       11.9       11.3  

International

      16.0       15.8       15.1       15.9       15.7  

Consolidated Total

      15.2 %     14.8 %     15.0 %     15.4 %     15.1 %
                                        

Earnings from Operations:

           

U.S. Commercial Staffing

    $ 29,535     $ 33,553     $ 32,531     $ 36,572     $ 132,191  

PTSA

      18,588       17,718       18,702       18,768       73,776  

International

      3,321       5,178       10,390       7,791       26,680  

Corporate Expense

      (38,690 )     (35,957 )     (38,490 )     (40,494 )     (153,631 )
                                        

Consolidated Total

    $ 12,754     $ 20,492     $ 23,133     $ 22,637     $ 79,016  
                                        
2005 Results of Operations by Segment

8

 

Exhibit 99.4

KELLY SERVICES, INC.

2005 RESULTS OF OPERATIONS BY SEGMENT

(In thousands of dollars)

 

     First
Qtr.		     Second
Qtr.		     Third
Qtr.		     Fourth
Qtr.		     Full
Year		  

Revenue from Services:

     

U.S. Commercial Staffing

    $ 565,514     $ 602,425     $ 619,324     $ 649,709     $ 2,436,972  

PTSA

      261,503       271,653       275,981       281,185       1,090,322  

International

      411,399       428,515       440,431       444,073       1,724,418  
                                        

Consolidated Total

    $ 1,238,416     $ 1,302,593     $ 1,335,736     $ 1,374,967     $ 5,251,712  
                                        

Gross Profit Rate:

     

U.S. Commercial Staffing

      15.2 %     15.0 %     15.1 %     15.0 %     15.1 %

PTSA

      17.4       17.2       16.9       16.6       17.0  

International

      17.2       17.4       17.2       16.8       17.2  

Consolidated Total

      16.3 %     16.3 %     16.2 %     15.9 %     16.2 %
                                        

Expense Rate:

     

U.S. Commercial Staffing

      10.7 %     10.2 %     10.1 %     9.8 %     10.2 %

PTSA

      12.1       11.6       11.3       11.0       11.5  

International

      17.2       16.5       15.9       15.7       16.3  

Consolidated Total

      15.9 %     15.3 %     15.0 %     14.7 %     15.2 %
                                        

Earnings from Operations:

           

U.S. Commercial Staffing

    $ 25,401     $ 28,877     $ 30,866     $ 33,706     $ 118,850  

PTSA

      14,002       15,449       15,603       15,812       60,866  

International

      48       3,929       5,842       4,666       14,485  

Corporate Expense

      (33,909 )     (35,451 )     (36,038 )     (37,522 )     (142,920 )
                                        

Consolidated Total

    $ 5,542     $ 12,804     $ 16,273     $ 16,662     $ 51,281