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, 2013
KELLY SERVICES, INC.
---------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
DELAWARE 0-1088 38-1510762
-------------------- -------------- ------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
999 WEST BIG BEAVER ROAD, TROY, MICHIGAN 48084
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(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))
1
Item 2.02. Results of Operations and Financial Condition
Kelly Services, Inc. (the “Company”) today released financial information containing highlighted financial data for the three months and year ended December 30, 2012. A copy of the press release is attached as exhibit 99.1 herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated January 31, 2013.
2
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, 2013 | ||
| /s/ Patricia Little | ||
| Patricia Little | ||
| Executive Vice President and | ||
| Chief Financial Officer | ||
| (Principal Financial Officer) | ||
| Date: January 31, 2013 | ||
| /s/ Michael E. Debs | ||
| Michael E. Debs | ||
| Senior Vice President and | ||
| Chief Accounting Officer | ||
| (Principal Accounting Officer) |
3
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release dated January 31, 2013
4
Exhibit 99.1
KELLY SERVICES® REPORTS 4th QUARTER AND FULL YEAR 2012 RESULTS
TROY, MI (January 31, 2013) -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the fourth quarter and full year of 2012.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2012 totaled $1.4 billion, a 2% decrease compared to the corresponding quarter of 2011. Revenue for the full year totaled $5.5 billion, a 2% decrease compared to the prior year.
Earnings from operations for the fourth quarter of 2012 totaled $9.8 million, compared to $12.7 million reported for the fourth quarter of 2011. Included in the results from operations for the fourth quarter of 2012 are asset impairment charges of $3.1 million and restructuring charges of $1.3 million. Excluding these charges, earnings from operations were $14.2 million in the fourth quarter of 2012 compared to $12.7 million in 2011.
Earnings from operations for the full year of 2012 totaled $72.3 million compared to $57.7 million in 2011. Included in the results from operations for 2012 are asset impairment charges of $3.1 million and a restructuring benefit of $900 thousand. Included in the results from operations for 2011 are restructuring charges of $2.8 million. Excluding these items from both years, earnings from operations were $74.5 million in 2012 compared to $60.5 million in 2011.
Diluted earnings per share from continuing operations in the fourth quarter of 2012 were $0.23 compared to $0.64 per share in the fourth quarter of 2011. Included in diluted earnings per share from continuing operations for the fourth quarter of 2012 are asset impairment charges of $0.05 per share, restructuring charges of $0.02 per share and a loss on the North Asia joint venture of $0.03 per share. Excluding these charges, diluted earnings per share from continuing operations for the fourth quarter of 2012 were $0.33 per share compared to $0.64 in 2011.
Diluted earnings per share from continuing operations for the full year of 2012 were $1.31 compared to $1.72 per share in 2011. Included in diluted earnings per share from continuing operations for 2012 are asset impairment charges of $0.05 per share, a restructuring benefit of $0.04 per share and a loss on the North Asia joint venture of $0.03 per share. Included in diluted earnings per share from continuing operations for 2011 are restructuring charges of $0.07 per share. Excluding these charges from both periods, diluted earnings per share from continuing operations for 2012 were $1.34 per share compared to $1.80 in 2011.
Commenting on the fourth quarter and full year results, Camden stated, "Given the challenging fourth quarter and anemic economic growth throughout the year, we're pleased with our performance. Our strategy is clearly yielding results. We kept expenses under control, grew our higher-margin professional and technical business, and delivered four straight quarters of positive earnings in our outsourcing and consulting group.”
Camden expects persistent headwinds and mediocre job growth in the months ahead, but feels Kelly is well-positioned. "We're operating more efficiently, and we’re investing in flexible solutions that meet the fastest-growing demands in the market. Skilled workers will continue to be in short supply in 2013, and companies will continue to look for ways to better manage their workforce. Kelly’s professional and technical staffing capabilities, along with our expertise in talent supply chain management, provide the solution.”
1
In conjunction with its fourth quarter and full year earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on January 31, 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, including our ability to successfully expand into new markets and service lines, material changes in demand from or loss of large corporate customers, impairment charges triggered by adverse industry or market developments, unexpected termination of customer contracts, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, liability for improper disclosure of sensitive or private employee information, unexpected changes in claim trends on workers’ compensation and benefit plans, our ability to maintain specified financial covenants in our bank facilities, our ability to access credit markets and continued availability of financing for funding working capital, 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 retain the services of our senior management, local management and field personnel, the impact of changes in laws and regulations (including federal, state and international tax laws), the net financial impact of the Patient Protection and Affordable Care Act on our business, risks associated with conducting business in foreign countries, including foreign currency fluctuations, 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®
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 560,000 employees annually. Revenue in 2012 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, and Twitter. Download The Talent Project, a free iPad app by Kelly Services.
# # #
| ANALYST CONTACT: | MEDIA CONTACT: |
| James Polehna | Jane Stehney |
| (248) 244-4586 | (248) 244-5630 |
| james_polehna@kellyservices.com | jane_stehney@kellyservices.com |
2
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED DECEMBER 30, 2012 AND JANUARY 1, 2012
(UNAUDITED)
(In millions of dollars except per share data)
|
|
2012
|
2011
|
Change
|
% Change
|
||||||||||||
|
|
||||||||||||||||
|
Revenue from services
|
$ | 1,375.4 | $ | 1,396.3 | $ | (20.9 | ) | (1.5 | )% | |||||||
|
|
||||||||||||||||
|
Cost of services
|
1,153.2 | 1,172.0 | (18.8 | ) | (1.6 | ) | ||||||||||
|
|
||||||||||||||||
|
Gross profit
|
222.2 | 224.3 | (2.1 | ) | (0.9 | ) | ||||||||||
|
|
||||||||||||||||
|
Selling, general and administrative expenses
|
209.3 | 211.6 | (2.3 | ) | (1.1 | ) | ||||||||||
|
Asset impairments
|
3.1 | - | 3.1 |
NM
|
||||||||||||
|
|
||||||||||||||||
|
Earnings from operations
|
9.8 | 12.7 | (2.9 | ) | (22.8 | ) | ||||||||||
|
Other expense, net
|
(1.7 | ) | - | (1.7 | ) |
NM
|
||||||||||
|
Earnings from continuing operations before taxes
|
8.1 | 12.7 | (4.6 | ) | (36.2 | ) | ||||||||||
|
Income taxes
|
(0.8 | ) | (11.4 | ) | 10.6 | 93.7 | ||||||||||
|
Earnings from continuing operations
|
8.9 | 24.1 | (15.2 | ) | (63.3 | ) | ||||||||||
|
|
||||||||||||||||
|
Earnings from discontinued operations, net of tax
|
- | - | - |
NM
|
||||||||||||
|
Net earnings
|
$ | 8.9 | $ | 24.1 | $ | (15.2 | ) | (63.2 | )% | |||||||
|
Basic earnings per share on common stock
|
||||||||||||||||
|
Earnings from continuing operations
|
$ | 0.23 | $ | 0.64 | $ | (0.41 | ) | (64.1 | )% | |||||||
|
Earnings from discontinued operations
|
- | - | - |
NM
|
||||||||||||
|
Net earnings
|
0.23 | 0.64 | (0.41 | ) | (64.1 | ) | ||||||||||
|
Diluted earnings per share on common stock
|
||||||||||||||||
|
Earnings from continuing operations
|
$ | 0.23 | $ | 0.64 | $ | (0.41 | ) | (64.1 | )% | |||||||
|
Earnings from discontinued operations
|
- | - | - |
NM
|
||||||||||||
|
Net earnings
|
0.23 | 0.64 | (0.41 | ) | (64.1 | ) | ||||||||||
|
STATISTICS:
|
||||||||||||||||
|
Gross profit rate
|
16.2 | % | 16.1 | % | 0.1 |
pts.
|
||||||||||
|
Selling, general and administrative expenses:
|
||||||||||||||||
|
% of revenue
|
15.2 | 15.2 | 0.0 | |||||||||||||
|
% of gross profit
|
94.2 | 94.3 | (0.1 | ) | ||||||||||||
|
% Return:
|
||||||||||||||||
|
Earnings from operations
|
0.7 | 0.9 | (0.2 | ) | ||||||||||||
|
Earnings from continuing operations before taxes
|
0.6 | 0.9 | (0.3 | ) | ||||||||||||
|
Earnings from continuing operations
|
0.6 | 1.7 | (1.1 | ) | ||||||||||||
|
Net earnings
|
0.6 | 1.7 | (1.1 | ) | ||||||||||||
|
Effective income tax rate
|
(8.9 | )% | (89.2 | )% | 80.3 | pts. | ||||||||||
|
Average number of shares outstanding (millions):
|
||||||||||||||||
|
Basic
|
37.1 | 36.8 | ||||||||||||||
|
Diluted
|
37.1 | 36.8 | ||||||||||||||
|
Shares adjusted for nonvested restricted awards (millions):
|
||||||||||||||||
|
Basic
|
38.3 | 37.8 | ||||||||||||||
|
Diluted
|
38.3 | 37.8 | ||||||||||||||
3
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 52 WEEKS ENDED DECEMBER 30, 2012 AND JANUARY 1, 2012
(UNAUDITED)
(In millions of dollars except per share data)
|
|
2012
|
2011
|
Change
|
% Change
|
||||||||||||
|
|
||||||||||||||||
|
Revenue from services
|
$ | 5,450.5 | $ | 5,551.0 | $ | (100.5 | ) | (1.8 | ) % | |||||||
|
|
||||||||||||||||
|
Cost of services
|
4,553.9 | 4,667.7 | (113.8 | ) | (2.4 | ) | ||||||||||
|
|
||||||||||||||||
|
Gross profit
|
896.6 | 883.3 | 13.3 | 1.5 | ||||||||||||
|
|
||||||||||||||||
|
Selling, general and administrative expenses
|
821.2 | 825.6 | (4.4 | ) | (0.6 | ) | ||||||||||
|
Asset impairments
|
3.1 | - | 3.1 |
NM
|
||||||||||||
|
|
||||||||||||||||
|
Earnings from operations
|
72.3 | 57.7 | 14.6 | 25.3 | ||||||||||||
|
Other expense, net
|
(3.5 | ) | (0.1 | ) | (3.4 | ) |
NM
|
|||||||||
|
Earnings from continuing operations before taxes
|
68.8 | 57.6 | 11.2 | 19.4 | ||||||||||||
|
Income taxes
|
19.1 | (7.3 | ) | 26.4 | 363.5 | |||||||||||
|
Earnings from continuing operations
|
49.7 | 64.9 | (15.2 | ) | (23.5 | ) | ||||||||||
|
|
||||||||||||||||
|
Earnings (loss) from discontinued operations, net of tax
|
0.4 | (1.2 | ) | 1.6 |
NM
|
|||||||||||
|
Net earnings
|
$ | 50.1 | $ | 63.7 | $ | (13.6 | ) | (21.4 | ) % | |||||||
|
Basic earnings per share on common stock
|
||||||||||||||||
|
Earnings from continuing operations
|
$ | 1.31 | $ | 1.72 | $ | (0.41 | ) | (23.8 | ) % | |||||||
|
Earnings (loss) from discontinued operations
|
0.01 | (0.03 | ) | 0.04 |
NM
|
|||||||||||
|
Net earnings
|
1.32 | 1.69 | (0.37 | ) | (21.9 | ) | ||||||||||
|
Diluted earnings per share on common stock
|
||||||||||||||||
|
Earnings from continuing operations
|
$ | 1.31 | $ | 1.72 | $ | (0.41 | ) | (23.8 | ) % | |||||||
|
Earnings (loss) from discontinued operations
|
0.01 | (0.03 | ) | 0.04 |
NM
|
|||||||||||
|
Net earnings
|
1.32 | 1.69 | (0.37 | ) | (21.9 | ) | ||||||||||
|
STATISTICS:
|
||||||||||||||||
|
Gross profit rate
|
16.5 | % | 15.9 | % | 0.6 |
pts.
|
||||||||||
|
Selling, general and administrative expenses:
|
||||||||||||||||
|
% of revenue
|
15.1 | 14.9 | 0.2 | |||||||||||||
|
% of gross profit
|
91.6 | 93.5 | (1.9 | ) | ||||||||||||
|
% Return:
|
||||||||||||||||
|
Earnings from operations
|
1.3 | 1.0 | 0.3 | |||||||||||||
|
Earnings from continuing operations before taxes
|
1.3 | 1.0 | 0.3 | |||||||||||||
|
Earnings from continuing operations
|
0.9 | 1.2 | (0.3 | ) | ||||||||||||
|
Net earnings
|
0.9 | 1.1 | (0.2 | ) | ||||||||||||
|
Effective income tax rate
|
27.8 | % | (12.6 | )% | 40.4 |
pts.
|
||||||||||
|
Average number of shares outstanding
|
||||||||||||||||
|
(millions):
|
||||||||||||||||
|
Basic
|
37.0 | 36.8 | ||||||||||||||
|
Diluted
|
37.0 | 36.8 | ||||||||||||||
|
Shares adjusted for nonvested restricted awards
|
||||||||||||||||
|
(millions):
|
||||||||||||||||
|
Basic
|
38.0 | 37.6 | ||||||||||||||
|
Diluted
|
38.1 | 37.6 | ||||||||||||||
4
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
|
Fourth Quarter
|
||||||||||||||||
|
2012
|
2011
|
Change
|
Constant
Currency |
|||||||||||||
|
AMERICAS
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 662.3 | $ | 675.6 | (2.0 | ) % | (2.1 | ) % | ||||||||
|
Fee-based income
|
3.6 | 3.2 | 13.5 | 13.9 | ||||||||||||
|
Gross profit
|
96.1 | 96.4 | (0.3 | ) | (0.4 | ) | ||||||||||
|
Gross profit rate
|
14.5 | % | 14.3 | % | 0.2 |
pts.
|
||||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 255.6 | $ | 243.7 | 4.9 | % | 4.6 | % | ||||||||
|
Fee-based income
|
3.2 | 3.6 | (12.3 | ) | (12.4 | ) | ||||||||||
|
Gross profit
|
38.9 | 38.0 | 2.4 | 2.2 | ||||||||||||
|
Gross profit rate
|
15.2 | % | 15.6 | % | (0.4 | ) |
pts.
|
|||||||||
|
Total Americas
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 917.9 | $ | 919.3 | (0.2 | ) % | (0.4 | ) % | ||||||||
|
Fee-based income
|
6.8 | 6.8 | (0.2 | ) | (0.1 | ) | ||||||||||
|
Gross profit
|
135.0 | 134.4 | 0.5 | 0.4 | ||||||||||||
|
Total SG&A expenses
|
102.4 | 100.1 | 2.3 | 2.3 | ||||||||||||
|
Earnings from operations
|
32.6 | 34.3 | (4.8 | ) | ||||||||||||
|
Gross profit rate
|
14.7 | % | 14.6 | % | 0.1 |
pts.
|
||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
11.2 | 10.9 | 0.3 | |||||||||||||
|
% of gross profit
|
75.8 | 74.5 | 1.3 | |||||||||||||
|
Operating margin
|
3.6 | 3.7 | (0.1 | ) | ||||||||||||
|
EMEA
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 213.4 | $ | 238.8 | (10.6 | ) % | (8.9 | ) % | ||||||||
|
Fee-based income
|
4.9 | 6.0 | (18.3 | ) | (17.3 | ) | ||||||||||
|
Gross profit
|
32.7 | 38.7 | (15.6 | ) | (14.0 | ) | ||||||||||
|
Gross profit rate
|
15.3 | % | 16.2 | % | (0.9 | ) |
pts.
|
|||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 43.0 | $ | 44.9 | (4.2 | ) % | (2.1 | ) % | ||||||||
|
Fee-based income
|
3.7 | 4.2 | (12.7 | ) | (11.3 | ) | ||||||||||
|
Gross profit
|
10.3 | 11.3 | (9.6 | ) | (7.8 | ) | ||||||||||
|
Gross profit rate
|
23.9 | % | 25.3 | % | (1.4 | ) |
pts.
|
|||||||||
|
Total EMEA
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 256.4 | $ | 283.7 | (9.6 | ) % | (7.8 | ) % | ||||||||
|
Fee-based income
|
8.6 | 10.2 | (16.0 | ) | (14.8 | ) | ||||||||||
|
Gross profit
|
43.0 | 50.0 | (14.3 | ) | (12.6 | ) | ||||||||||
|
SG&A expenses excluding restructuring charges
|
42.6 | 46.4 | (8.3 | ) | ||||||||||||
|
Restructuring charges
|
1.3 | - |
NM
|
|||||||||||||
|
Total SG&A expenses
|
43.9 | 46.4 | (5.6 | ) | (4.1 | ) | ||||||||||
|
Earnings from operations
|
(0.9 | ) | 3.6 |
NM
|
||||||||||||
|
Earnings from operations excluding restructuring charges
|
0.4 | 3.6 | (91.7 | ) | ||||||||||||
|
Gross profit rate
|
16.7 | % | 17.7 | % | (1.0 | ) |
pts.
|
|||||||||
|
Expense rates (excluding restructuring charges):
|
||||||||||||||||
|
% of revenue
|
16.6 | 16.4 | 0.2 | |||||||||||||
|
% of gross profit
|
99.3 | 92.8 | 6.5 | |||||||||||||
|
Operating margin (excluding restructuring charges)
|
0.1 | 1.3 | (1.2 | ) | ||||||||||||
5
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
|
Fourth Quarter
|
||||||||||||||||
|
2012
|
2011
|
Change
|
Constant
Currency |
|||||||||||||
|
APAC
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 84.9 | $ | 93.8 | (9.5 | ) % | (12.4 | ) % | ||||||||
|
Fee-based income
|
2.4 | 2.9 | (18.5 | ) | (19.2 | ) | ||||||||||
|
Gross profit
|
11.7 | 13.2 | (11.2 | ) | (13.6 | ) | ||||||||||
|
Gross profit rate
|
13.8 | % | 14.1 | % | (0.3 | ) | pts. | |||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 11.7 | $ | 12.3 | (4.6 | ) % | (6.8 | ) % | ||||||||
|
Fee-based income
|
2.9 | 3.1 | (5.6 | ) | (8.0 | ) | ||||||||||
|
Gross profit
|
4.3 | 4.4 | (1.5 | ) | (4.0 | ) | ||||||||||
|
Gross profit rate
|
36.7 | % | 35.5 | % | 1.2 | pts. | ||||||||||
|
Total APAC
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 96.6 | $ | 106.1 | (9.0 | ) % | (11.7 | ) % | ||||||||
|
Fee-based income
|
5.3 | 6.0 | (11.9 | ) | (13.4 | ) | ||||||||||
|
Gross profit
|
16.0 | 17.6 | (8.8 | ) | (11.2 | ) | ||||||||||
|
Total SG&A expenses
|
15.9 | 17.9 | (11.0 | ) | (13.3 | ) | ||||||||||
|
Earnings from operations
|
0.1 | (0.3 | ) |
NM
|
||||||||||||
|
Gross profit rate
|
16.6 | % | 16.6 | % | - | pts. | ||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
16.5 | 16.9 | (0.4 | ) | ||||||||||||
|
% of gross profit
|
99.3 | 101.7 | (2.4 | ) | ||||||||||||
|
Operating margin
|
0.1 | (0.3 | ) | 0.4 | ||||||||||||
|
OCG
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 113.3 | $ | 94.4 | 20.1 | % | 20.0 | % | ||||||||
|
Fee-based income
|
13.8 | 10.8 | 26.9 | 27.1 | ||||||||||||
|
Gross profit
|
29.0 | 23.0 | 26.3 | 26.3 | ||||||||||||
|
Total SG&A expenses
|
25.8 | 22.2 | 16.1 | 16.2 | ||||||||||||
|
Earnings from operations
|
3.2 | 0.8 | 302.0 | |||||||||||||
|
Gross profit rate
|
25.6 | % | 24.3 | % | 1.3 | pts. | ||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
22.7 | 23.5 | (0.8 | ) | ||||||||||||
|
% of gross profit
|
88.7 | 96.4 | (7.7 | ) | ||||||||||||
|
Operating margin
|
2.9 | 0.9 | 2.0 | |||||||||||||
6
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
|
December Year to Date
|
||||||||||||||||
|
2012
|
2011
|
Change
|
Constant
Currency |
|||||||||||||
|
AMERICAS
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 2,642.4 | $ | 2,660.9 | (0.7 | ) % | - | % | ||||||||
|
Fee-based income
|
15.7 | 12.0 | 30.7 | 33.3 | ||||||||||||
|
Gross profit
|
388.2 | 375.3 | 3.4 | 4.1 | ||||||||||||
|
Gross profit rate
|
14.7 | % | 14.1 | % | 0.6 |
pts.
|
||||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 1,029.7 | $ | 982.8 | 4.8 | % | 4.8 | % | ||||||||
|
Fee-based income
|
14.5 | 13.3 | 8.5 | 8.6 | ||||||||||||
|
Gross profit
|
159.7 | 147.8 | 8.0 | 8.1 | ||||||||||||
|
Gross profit rate
|
15.5 | % | 15.0 | % | 0.5 |
pts.
|
||||||||||
|
Total Americas
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 3,672.1 | $ | 3,643.7 | 0.8 | % | 1.3 | % | ||||||||
|
Fee-based income
|
30.2 | 25.3 | 19.0 | 20.3 | ||||||||||||
|
Gross profit
|
547.9 | 523.1 | 4.7 | 5.2 | ||||||||||||
|
Total SG&A expenses
|
405.8 | 396.4 | 2.4 | 3.0 | ||||||||||||
|
Earnings from operations
|
142.1 | 126.7 | 12.0 | |||||||||||||
|
Gross profit rate
|
14.9 | % | 14.4 | % | 0.5 |
pts.
|
||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
11.1 | 10.9 | 0.2 | |||||||||||||
|
% of gross profit
|
74.1 | 75.8 | (1.7 | ) | ||||||||||||
|
Operating margin
|
3.9 | 3.5 | 0.4 | |||||||||||||
|
EMEA
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 854.6 | $ | 990.1 | (13.7 | ) % | (8.0 | ) % | ||||||||
|
Fee-based income
|
22.4 | 24.9 | (10.1 | ) | (4.2 | ) | ||||||||||
|
Gross profit
|
133.8 | 160.3 | (16.6 | ) | (10.9 | ) | ||||||||||
|
Gross profit rate
|
15.7 | % | 16.2 | % | (0.5 | ) |
pts.
|
|||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 168.3 | $ | 178.9 | (5.9 | ) % | 0.4 | % | ||||||||
|
Fee-based income
|
16.8 | 19.2 | (12.7 | ) | (7.3 | ) | ||||||||||
|
Gross profit
|
43.0 | 47.4 | (9.4 | ) | (3.4 | ) | ||||||||||
|
Gross profit rate
|
25.5 | % | 26.5 | % | (1.0 | ) |
pts.
|
|||||||||
|
Total EMEA
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 1,022.9 | $ | 1,169.0 | (12.5 | ) % | (6.7 | ) % | ||||||||
|
Fee-based income
|
39.2 | 44.1 | (11.2 | ) | (5.5 | ) | ||||||||||
|
Gross profit
|
176.8 | 207.7 | (14.9 | ) | (9.2 | ) | ||||||||||
|
SG&A expenses excluding restructuring charges
|
169.0 | 186.9 | (9.7 | ) | ||||||||||||
|
Restructuring charges
|
(0.9 | ) | 2.8 | (132.3 | ) | |||||||||||
|
Total SG&A expenses
|
168.1 | 189.7 | (11.5 | ) | (6.0 | ) | ||||||||||
|
Earnings from operations
|
8.7 | 18.0 | (51.6 | ) | ||||||||||||
|
Earnings from operations excluding restructuring charges
|
7.8 | 20.8 | (62.5 | ) | ||||||||||||
|
Gross profit rate
|
17.3 | % | 17.8 | % | (0.5 | ) |
pts.
|
|||||||||
|
Expense rates (excluding restructuring charges):
|
||||||||||||||||
|
% of revenue
|
16.5 | 16.0 | 0.5 | |||||||||||||
|
% of gross profit
|
95.6 | 90.1 | 5.5 | |||||||||||||
|
Operating margin (excluding restructuring charges)
|
0.8 | 1.8 | (1.0 | ) | ||||||||||||
7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(In millions of dollars)
|
December Year to Date
|
||||||||||||||||
|
2012
|
2011
|
Change
|
Constant
Currency |
|||||||||||||
|
APAC
|
||||||||||||||||
|
Commercial
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 343.2 | $ | 397.6 | (13.7 | ) % | (13.2 | ) % | ||||||||
|
Fee-based income
|
11.7 | 13.9 | (15.7 | ) | (13.4 | ) | ||||||||||
|
Gross profit
|
50.1 | 55.7 | (10.0 | ) | (9.3 | ) | ||||||||||
|
Gross profit rate
|
14.6 | % | 14.0 | % | 0.6 |
pts.
|
||||||||||
|
PT
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 51.6 | $ | 51.4 | 0.5 | % | 1.2 | % | ||||||||
|
Fee-based income
|
15.8 | 15.3 | 3.1 | 2.9 | ||||||||||||
|
Gross profit
|
21.0 | 20.6 | 1.9 | 2.0 | ||||||||||||
|
Gross profit rate
|
40.6 | % | 40.1 | % | 0.5 |
pts.
|
||||||||||
|
Total APAC
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 394.8 | $ | 449.0 | (12.1 | ) % | (11.5 | ) % | ||||||||
|
Fee-based income
|
27.5 | 29.2 | (5.8 | ) | (4.8 | ) | ||||||||||
|
Gross profit
|
71.1 | 76.3 | (6.8 | ) | (6.3 | ) | ||||||||||
|
Total SG&A expenses
|
73.4 | 77.0 | (4.7 | ) | (4.1 | ) | ||||||||||
|
Earnings from operations
|
(2.3 | ) | (0.7 | ) | (207.4 | ) | ||||||||||
|
Gross profit rate
|
18.0 | % | 17.0 | % | 1.0 |
pts.
|
||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
18.6 | 17.2 | 1.4 | |||||||||||||
|
% of gross profit
|
103.3 | 101.0 | 2.3 | |||||||||||||
|
Operating margin
|
(0.6 | ) | (0.2 | ) | (0.4 | ) | ||||||||||
|
OCG
|
||||||||||||||||
|
Revenue from services (including fee-based income)
|
$ | 396.1 | $ | 317.3 | 24.8 | % | 25.5 | % | ||||||||
|
Fee-based income
|
51.4 | 39.5 | 30.0 | 32.1 | ||||||||||||
|
Gross profit
|
104.0 | 78.8 | 32.0 | 33.5 | ||||||||||||
|
Total SG&A expenses
|
95.4 | 81.4 | 17.0 | 18.6 | ||||||||||||
|
Earnings from operations
|
8.6 | (2.6 | ) |
NM
|
||||||||||||
|
Gross profit rate
|
26.3 | % | 24.8 | % | 1.5 |
pts.
|
||||||||||
|
Expense rates:
|
||||||||||||||||
|
% of revenue
|
24.1 | 25.7 | (1.6 | ) | ||||||||||||
|
% of gross profit
|
91.6 | 103.4 | (11.8 | ) | ||||||||||||
|
Operating margin
|
2.2 | (0.8 | ) | 3.0 | ||||||||||||
8
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
|
Dec. 30, 2012
|
Jan. 1, 2012
|
|||||||
|
Current Assets
|
||||||||
|
Cash and equivalents
|
$ | 76.3 | $ | 81.0 | ||||
|
Trade accounts receivable, less allowances of $10.4 and $13.4, respectively
|
1,013.9 | 944.9 | ||||||
|
Prepaid expenses and other current assets
|
57.5 | 50.6 | ||||||
|
Deferred taxes
|
44.9 | 38.2 | ||||||
| Total current assets | 1,192.6 | 1,114.7 | ||||||
|
Property and Equipment, Net
|
89.9 | 90.6 | ||||||
|
Noncurrent Deferred Taxes
|
82.8 | 94.1 | ||||||
|
Goodwill, Net
|
89.5 | 90.2 | ||||||
|
Other Assets
|
180.9 | 152.1 | ||||||
|
Total Assets
|
$ | 1,635.7 | $ | 1,541.7 | ||||
|
Current Liabilities
|
||||||||
|
Short-term borrowings
|
$ | 64.1 | $ | 96.3 | ||||
|
Accounts payable and accrued liabilities
|
295.6 | 237.2 | ||||||
|
Accrued payroll and related taxes
|
264.5 | 271.4 | ||||||
|
Accrued insurance
|
32.8 | 31.5 | ||||||
|
Income and other taxes
|
65.3 | 61.3 | ||||||
| Total current liabilities | 722.3 | 697.7 | ||||||
|
Noncurrent Liabilities
|
||||||||
|
Accrued insurance
|
43.5 | 53.5 | ||||||
|
Accrued retirement benefits
|
111.0 | 91.1 | ||||||
|
Other long-term liabilities
|
17.9 | 23.7 | ||||||
| Total noncurrent liabilities | 172.4 | 168.3 | ||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
40.1 | 40.1 | ||||||
|
Treasury stock
|
(61.6 | ) | (66.9 | ) | ||||
|
Paid-in capital
|
27.1 | 28.8 | ||||||
|
Earnings invested in the business
|
700.0 | 657.5 | ||||||
|
Accumulated other comprehensive income
|
35.4 | 16.2 | ||||||
| Total stockholders' equity | 741.0 | 675.7 | ||||||
|
Total Liabilities and Stockholders' Equity
|
$ | 1,635.7 | $ | 1,541.7 | ||||
|
|
||||||||
|
STATISTICS:
|
||||||||
|
Working Capital
|
$ | 470.3 | $ | 417.0 | ||||
|
Current Ratio
|
1.7 | 1.6 | ||||||
|
Debt-to-capital %
|
8.0 | % | 12.5 | % | ||||
|
Global Days Sales Outstanding
|
53 | 52 | ||||||
9
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED DECEMBER 30, 2012 AND JANUARY 1, 2012
(UNAUDITED)
(In millions of dollars)
|
2012
|
2011
|
|||||||
|
Cash flows from operating activities
|
||||||||
|
Net earnings
|
$ | 50.1 | $ | 63.7 | ||||
|
Noncash adjustments:
|
||||||||
|
Impairment of assets
|
3.1 | - | ||||||
|
Depreciation and amortization
|
22.3 | 31.4 | ||||||
|
Provision for bad debts
|
1.1 | 4.3 | ||||||
|
Stock-based compensation
|
4.8 | 4.6 | ||||||
|
Other, net
|
1.3 | (2.6 | ) | |||||
|
Changes in operating assets and liabilities
|
(21.6 | ) | (82.3 | ) | ||||
|
Net cash from operating activities
|
61.1 | 19.1 | ||||||
|
Cash flows from investing activities
|
||||||||
|
Capital expenditures
|
(21.5 | ) | (15.4 | ) | ||||
|
Investment in equity affiliate
|
(6.6 | ) | - | |||||
|
Acquisition of companies, net of cash received
|
- | (6.5 | ) | |||||
|
Other investing activities
|
- | 1.2 | ||||||
|
Net cash from investing activities
|
(28.1 | ) | (20.7 | ) | ||||
|
Cash flows from financing activities
|
||||||||
|
Net change in short-term borrowings
|
(31.9 | ) | 79.2 | |||||
|
Repayment of debt
|
- | (68.3 | ) | |||||
|
Dividend payments
|
(7.6 | ) | (3.8 | ) | ||||
|
Other financing activities
|
0.1 | (1.0 | ) | |||||
|
Net cash from financing activities
|
(39.4 | ) | 6.1 | |||||
|
Effect of exchange rates on cash and equivalents
|
1.7 | (4.0 | ) | |||||
|
Net change in cash and equivalents
|
(4.7 | ) | 0.5 | |||||
|
Cash and equivalents at beginning of period
|
81.0 | 80.5 | ||||||
|
Cash and equivalents at end of period
|
$ | 76.3 | $ | 81.0 | ||||
10
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
|
Fourth Quarter (Commercial, PT and OCG)
|
||||||||||||||||
|
% Change
|
||||||||||||||||
|
2012
|
2011
|
US$
|
Constant
Currency |
|||||||||||||
|
Americas
|
||||||||||||||||
|
United States
|
$ | 877.9 | $ | 883.8 | (0.7 | ) % | (0.7 | ) % | ||||||||
|
Canada
|
60.5 | 60.9 | (0.8 | ) | (3.9 | ) | ||||||||||
|
Mexico
|
35.3 | 26.2 | 34.8 | 27.7 | ||||||||||||
|
Puerto Rico
|
23.4 | 25.9 | (9.6 | ) | (9.6 | ) | ||||||||||
|
Brazil
|
14.0 | - |
NM
|
NM
|
||||||||||||
|
Total Americas
|
1,011.1 | 996.8 | 1.4 | 1.3 | ||||||||||||
|
EMEA
|
||||||||||||||||
|
France
|
58.8 | 71.2 | (17.3 | ) | (14.1 | ) | ||||||||||
|
Switzerland
|
61.2 | 62.0 | (1.4 | ) | 0.9 | |||||||||||
|
Russia
|
33.9 | 33.4 | 1.7 | 1.2 | ||||||||||||
|
United Kingdom
|
25.6 | 29.1 | (11.9 | ) | (13.8 | ) | ||||||||||
|
Portugal
|
19.0 | 21.6 | (12.2 | ) | (8.8 | ) | ||||||||||
|
Germany
|
16.4 | 20.1 | (18.5 | ) | (15.2 | ) | ||||||||||
|
Norway
|
15.5 | 17.8 | (12.9 | ) | (13.9 | ) | ||||||||||
|
Italy
|
14.6 | 17.7 | (17.6 | ) | (14.3 | ) | ||||||||||
|
Other
|
19.0 | 17.7 | 7.1 | 9.3 | ||||||||||||
|
Total EMEA
|
264.0 | 290.6 | (9.2 | ) | (7.4 | ) | ||||||||||
|
APAC
|
||||||||||||||||
|
Australia
|
33.9 | 35.1 | (3.4 | ) | (5.8 | ) | ||||||||||
|
Singapore
|
26.5 | 24.4 | 8.4 | 2.9 | ||||||||||||
|
Malaysia
|
18.0 | 17.6 | 2.6 | (0.5 | ) | |||||||||||
|
New Zealand
|
12.9 | 13.0 | (0.4 | ) | (6.0 | ) | ||||||||||
|
Other
|
9.0 | 18.8 | (52.6 | ) | (50.3 | ) | ||||||||||
|
Total APAC
|
100.3 | 108.9 | (7.9 | ) | (10.7 | ) | ||||||||||
|
Total Kelly Services, Inc.
|
$ | 1,375.4 | $ | 1,396.3 | (1.5 | ) % | (1.5 | ) % | ||||||||
11
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
|
December Year to Date (Commercial, PT and OCG)
|
||||||||||||||||
|
% Change
|
||||||||||||||||
|
2012
|
2011
|
US$
|
Constant
Currency |
|||||||||||||
|
Americas
|
||||||||||||||||
|
United States
|
$ | 3,464.2 | $ | 3,445.4 | 0.5 | % | 0.5 | % | ||||||||
|
Canada
|
243.9 | 247.7 | (1.6 | ) | (0.5 | ) | ||||||||||
|
Mexico
|
117.7 | 106.0 | 11.0 | 16.7 | ||||||||||||
|
Puerto Rico
|
99.7 | 96.6 | 3.3 | 3.3 | ||||||||||||
|
Brazil
|
60.7 | - |
NM
|
NM
|
||||||||||||
|
Total Americas
|
3,986.2 | 3,895.7 | 2.3 | 2.8 | ||||||||||||
|
EMEA
|
||||||||||||||||
|
France
|
243.0 | 295.9 | (17.9 | ) | (11.0 | ) | ||||||||||
|
Switzerland
|
235.6 | 239.8 | (1.8 | ) | 4.7 | |||||||||||
|
Russia
|
131.0 | 141.8 | (7.6 | ) | (2.4 | ) | ||||||||||
|
United Kingdom
|
104.9 | 121.6 | (13.8 | ) | (12.7 | ) | ||||||||||
|
Portugal
|
75.0 | 87.7 | (14.5 | ) | (7.3 | ) | ||||||||||
|
Germany
|
70.3 | 82.8 | (15.1 | ) | (7.9 | ) | ||||||||||
|
Norway
|
66.3 | 68.7 | (3.5 | ) | 0.5 | |||||||||||
|
Italy
|
59.1 | 71.0 | (16.7 | ) | (9.9 | ) | ||||||||||
|
Other
|
67.4 | 85.1 | (20.8 | ) | (14.5 | ) | ||||||||||
|
Total EMEA
|
1,052.6 | 1,194.4 | (11.9 | ) | (6.0 | ) | ||||||||||
|
APAC
|
||||||||||||||||
|
Australia
|
135.5 | 145.4 | (6.9 | ) | (7.2 | ) | ||||||||||
|
Singapore
|
101.6 | 103.0 | (1.4 | ) | (2.0 | ) | ||||||||||
|
Malaysia
|
72.9 | 72.1 | 1.2 | 2.1 | ||||||||||||
|
New Zealand
|
52.4 | 50.8 | 3.2 | 1.0 | ||||||||||||
|
Other
|
49.3 | 89.6 | (45.0 | ) | (40.2 | ) | ||||||||||
|
Total APAC
|
411.7 | 460.9 | (10.7 | ) | (10.1 | ) | ||||||||||
|
Total Kelly Services, Inc.
|
$ | 5,450.5 | $ | 5,551.0 | (1.8 | ) % | (0.2 | ) % | ||||||||
12
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED DECEMBER 30, 2012 AND JANUARY 1, 2012
(UNAUDITED)
(In millions of dollars except per share data)
|
2012
|
2011
|
|||||||||||||||||||||||||||
|
As reported
|
Restructuring Charges
(Note 1)
|
Asset Impairments (Note 2)
|
Loss on Equity Investment (Note 3)
|
Adjusted Earnings
|
Earnings
|
% Change
|
||||||||||||||||||||||
|
Revenue from services
|
$ | 1,375.4 | $ | - | $ | - | $ | - | $ | 1,375.4 | $ | 1,396.3 | (1.5 | ) % | ||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Cost of services
|
1,153.2 | - | - | - | 1,153.2 | 1,172.0 | (1.6 | ) | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Gross profit
|
222.2 | - | - | - | 222.2 | 224.3 | (0.9 | ) | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Selling, general and administrative expenses
|
209.3 | (1.3 | ) | - | - | 208.0 | 211.6 | (1.7 | ) | |||||||||||||||||||
|
Asset impairments
|
3.1 | - | (3.1 | ) | - | - | - | - | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Earnings from operations
|
9.8 | 1.3 | 3.1 | - | 14.2 | 12.7 | 11.8 | |||||||||||||||||||||
|
Other expense, net
|
(1.7 | ) | - | - | 0.7 | (1.0 | ) | - |
NM
|
|||||||||||||||||||
|
Earnings from continuing operations before taxes
|
8.1 | 1.3 | 3.1 | 0.7 | 13.2 | 12.7 | 4.1 | |||||||||||||||||||||
|
Income taxes
|
(0.8 | ) | 0.5 | 1.2 | (0.3 | ) | 0.6 | (11.4 | ) | (106.5 | ) | |||||||||||||||||
|
Earnings from continuing operations
|
$ | 8.9 | $ | 0.8 | $ | 1.9 | $ | 1.0 | $ | 12.6 | $ | 24.1 | (48.1 | ) % | ||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Earnings per share from continuing operations:
|
||||||||||||||||||||||||||||
|
Basic
|
$ | 0.23 | $ | 0.02 | $ | 0.05 | $ | 0.03 | $ | 0.33 | $ | 0.64 | (48.4 | ) % | ||||||||||||||
|
Diluted
|
$ | 0.23 | $ | 0.02 | $ | 0.05 | $ | 0.03 | $ | 0.33 | $ | 0.64 | (48.4 | ) % | ||||||||||||||
13
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 52 WEEKS ENDED DECEMBER 30, 2012 AND JANUARY 1, 2012
(UNAUDITED)
(In millions of dollars except per share data)
|
2012
|
2011
|
|||||||||||||||||||||||||||
|
As reported
|
Restructuring Charges
(Note 1)
|
Asset Impairments (Note 2)
|
Loss on Equity Investment (Note 3)
|
Adjusted Earnings
|
Adjusted Earnings
|
% Change
|
||||||||||||||||||||||
|
Revenue from services
|
$ | 5,450.5 | $ | - | $ | - | $ | - | $ | 5,450.5 | $ | 5,551.0 | (1.8 | ) % | ||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Cost of services
|
4,553.9 | - | - | - | 4,553.9 | 4,667.7 | (2.4 | ) | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Gross profit
|
896.6 | - | - | - | 896.6 | 883.3 | 1.5 | |||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Selling, general and administrative expenses
|
821.2 | 0.9 | - | - | 822.1 | 822.8 | (0.1 | ) | ||||||||||||||||||||
|
Asset impairments
|
3.1 | - | (3.1 | ) | - | - | - | - | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Earnings from operations
|
72.3 | (0.9 | ) | 3.1 | - | 74.5 | 60.5 | 23.2 | ||||||||||||||||||||
|
Other expense, net
|
(3.5 | ) | - | - | 0.7 | (2.8 | ) | (0.1 | ) |
NM
|
||||||||||||||||||
|
Earnings from continuing operations before taxes
|
68.8 | (0.9 | ) | 3.1 | 0.7 | 71.7 | 60.4 | 18.8 | ||||||||||||||||||||
|
Income taxes
|
19.1 | 0.5 | 1.2 | (0.3 | ) | 20.5 | (7.3 | ) | (383.6 | ) | ||||||||||||||||||
|
Earnings from continuing operations
|
$ | 49.7 | $ | (1.4 | ) | $ | 1.9 | $ | 1.0 | $ | 51.2 | $ | 67.7 | (24.4 | ) % | |||||||||||||
|
|
||||||||||||||||||||||||||||
|
Earnings per share from continuing operations:
|
||||||||||||||||||||||||||||
|
Basic
|
$ | 1.31 | $ | (0.04 | ) | $ | 0.05 | $ | 0.03 | $ | 1.34 | $ | 1.80 | (25.6 | ) % | |||||||||||||
|
Diluted
|
$ | 1.31 | $ | (0.04 | ) | $ | 0.05 | $ | 0.03 | $ | 1.34 | $ | 1.80 | (25.6 | ) % | |||||||||||||
|
2011
|
||||||||||||
|
As reported
|
Restructuring Charges
(Note 1)
|
Adjusted Earnings
|
||||||||||
|
Revenue from services
|
$ | 5,551.0 | $ | - | $ | 5,551.0 | ||||||
|
|
||||||||||||
|
Cost of services
|
4,667.7 | - | 4,667.7 | |||||||||
|
|
||||||||||||
|
Gross profit
|
883.3 | - | 883.3 | |||||||||
|
|
||||||||||||
|
Selling, general and administrative expenses
|
825.6 | (2.8 | ) | 822.8 | ||||||||
|
Asset impairments
|
- | - | - | |||||||||
|
|
||||||||||||
|
Earnings from operations
|
57.7 | 2.8 | 60.5 | |||||||||
|
Other expense, net
|
(0.1 | ) | - | (0.1 | ) | |||||||
|
Earnings from continuing operations before taxes
|
57.6 | 2.8 | 60.4 | |||||||||
|
Income taxes
|
(7.3 | ) | - | (7.3 | ) | |||||||
|
Earnings from continuing operations
|
$ | 64.9 | $ | 2.8 | $ | 67.7 | ||||||
|
|
||||||||||||
|
Earnings per share from continuing operations:
|
||||||||||||
|
Basic
|
$ | 1.72 | $ | 0.07 | $ | 1.80 | ||||||
|
Diluted
|
$ | 1.72 | $ | 0.07 | $ | 1.80 | ||||||
14
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, asset impairment charges and loss on equity investment is useful to understand the Company's fiscal 2012 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)
|
In 2012, restructuring charges relate to severance and lease termination costs for EMEA Commercial branches which are in the process of closing, along with revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years. In 2011, restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.
|
|
(2)
|
Asset impairment charges relate to the write-off of previously capitalized costs associated with the PeopleSoft billing system.
|
|
(3)
|
Loss on equity investment represents the difference between the fair value and book value of the North Asia entities contributed by the Company to the investment in TS Kelly Workforce Solutions.
|
15