U.S. 1 800 288-9626 International 1 612 332-0107The pass code is Kelly Services Via the Internet: The call is also available via the internet through the Kelly Services website: www.kellyservices.com This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Actual results may differ materially from any forward-looking statements contained herein. About Kelly Services Kelly Services, Inc. (
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 14 WEEKS ENDED JANUARY 3, 2010 AND 13 WEEKS ENDED DECEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)
2009 2008 Change % Change
--------- --------- --------- --------
Revenue from services $ 1,194.1 $ 1,279.1 $ (85.0) (6.6)%
Cost of services 1,005.8 1,054.5 (48.7) (4.6)
--------- --------- --------- --------
Gross profit 188.3 224.6 (36.3) (16.2)
Selling, general and
administrative expenses 201.3 227.8 (26.5) (11.7)
Asset impairments - 80.5 (80.5) (100.0)
--------- --------- --------- --------
Loss from operations (13.0) (83.7) 70.7 84.5
Other expense, net (0.9) (3.4) 2.5 73.8
--------- --------- --------- --------
Loss from continuing
operations before taxes (13.9) (87.1) 73.2 84.1
Income taxes (5.7) 1.5 (7.2) (469.5)
--------- --------- --------- --------
Loss from continuing
operations (8.2) (88.6) 80.4 90.8
Loss from discontinued
operations, net of tax - (0.1) 0.1 100.0
--------- --------- --------- --------
Net loss $ (8.2) $ (88.7) $ 80.5 90.8 %
========= ========= ========= ========
Basic loss per share on
common stock
Loss from continuing
operations $ (0.23) $ (2.55) $ 2.32 91.0 %
Loss from discontinued
operations - (0.01) 0.01 100.0
Net loss (0.23) (2.55) 2.32 91.0
Diluted loss per share on
common stock
Loss from continuing
operations $ (0.23) $ (2.55) $ 2.32 91.0 %
Loss from discontinued
operations - (0.01) 0.01 100.0
Net loss (0.23) (2.55) 2.32 91.0
--------- --------- --------- --------
STATISTICS:
Gross profit rate 15.8 % 17.6 % (1.8)pts.
Selling, general and
administrative expenses:
% of revenue 16.8 17.8 (1.0)
% of gross profit 106.9 101.4 5.5
% Return - Loss from
operations (1.1) (6.5) 5.4
Loss from
continuing
operations
before taxes (1.2) (6.8) 5.6
Loss from
continuing
operations (0.7) (6.9) 6.2
Net loss (0.7) (6.9) 6.2
Effective income tax rate 41.0 % (1.8) % 42.8 pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 53 WEEKS ENDED JANUARY 3, 2010 AND 52 WEEKS ENDED DECEMBER 28, 2008
(In millions of dollars except per share data)
2009 2008 Change % Change
---------- ---------- ---------- ---------
Revenue from services $ 4,314.8 $ 5,517.3 $ (1,202.5) (21.8)%
Cost of services 3,613.1 4,539.7 (926.6) (20.4)
---------- ---------- ---------- ---------
Gross profit 701.7 977.6 (275.9) (28.2)
Selling, general and
administrative
expenses 794.7 967.4 (172.7) (17.9)
Asset impairments 53.1 80.5 (27.4) (34.1)
---------- ---------- ---------- ---------
Loss from operations (146.1) (70.3) (75.8) (107.8)
Other expense, net (2.2) (3.4) 1.2 35.8
---------- ---------- ---------- ---------
Loss from continuing
operations before
taxes (148.3) (73.7) (74.6) (101.1)
Income taxes (43.2) 8.0 (51.2) NM
---------- ---------- ---------- ---------
Loss from continuing
operations (105.1) (81.7) (23.4) (28.6)
Earnings (loss) from
discontinued
operations, net of
tax 0.6 (0.5) 1.1 212.0
---------- ---------- ---------- ---------
Net loss $ (104.5) $ (82.2) $ (22.3) (27.0)%
========== ========== ========== =========
Basic loss per share
on common stock
Loss from continuing
operations $ (3.01) $ (2.35) $ (0.66) (28.1)%
Earnings (loss) from
discontinued
operations 0.02 (0.02) 0.04 200.0
Net loss (3.00) (2.37) (0.63) (26.6)
Diluted loss per share
on common stock
Loss from continuing
operations $ (3.01) $ (2.35) $ (0.66) (28.1)%
Earnings (loss) from
discontinued
operations 0.02 (0.02) 0.04 200.0
Net loss (3.00) (2.37) (0.63) (26.6)
---------- ---------- ---------- ---------
STATISTICS:
Gross profit rate 16.3 % 17.7 % (1.4)pts.
Selling, general and
administrative
expenses:
% of revenue 18.4 17.5 0.9
% of gross profit 113.2 99.0 14.2
% Return - Loss from
operations (3.4) (1.3) (2.1)
Loss from
continuing
operations
before taxes (3.4) (1.3) (2.1)
Loss from
continuing
operations (2.4) (1.5) (0.9)
Net loss (2.4) (1.5) (0.9)
Effective income tax
rate 29.1 % (10.8) % 39.9 pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
----------------------------------------
Constant
2009 2008 Currency
(14 Weeks)(13 Weeks) Change Change
-------- -------- ---------- -------
Americas Commercial
Revenue from services
(including fee-based income) $ 557.4 $ 595.6 (6.4)% (7.3)%
Fee-based income 1.5 2.8 (46.7) (48.3)
Gross profit 79.8 96.4 (17.2) (18.0)
SG&A expenses excluding
restructuring charges 67.9 79.7 (14.8)
Restructuring charges 3.5 0.6 450.2
Total SG&A expenses 71.4 80.3 (11.1) (11.9)
Earnings from operations 8.4 16.1 (47.7)
Earnings from operations
excluding restructuring
charges 11.9 16.7 (28.9)
Gross profit rate 14.3% 16.2% (1.9)pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.2 13.4 (1.2)
% of gross profit 85.0 82.5 2.5
Operating margin (excluding
restructuring charges) 2.2 2.8 (0.6)
Americas PT
Revenue from services
(including fee-based income) $ 208.3 $ 219.3 (5.0)% (5.3)%
Fee-based income 2.2 3.7 (39.8) (40.0)
Gross profit 31.9 37.5 (14.9) (15.1)
SG&A expenses excluding
restructuring charges 24.7 27.8 (11.0)
Restructuring charges 0.8 - NM
Total SG&A expenses 25.5 27.8 (8.1) (8.3)
Earnings from operations 6.4 9.7 (34.4)
Earnings from operations
excluding restructuring
charges 7.2 9.7 (26.2)
Gross profit rate 15.3% 17.1% (1.8)pts.
Expense rates (excluding
restructuring charges):
% of revenue 11.9 12.7 (0.8)
% of gross profit 77.5 74.1 3.4
Operating margin (excluding
restructuring charges) 3.4 4.4 (1.0)
EMEA Commercial
Revenue from services
(including fee-based income) $ 238.9 $ 283.3 (15.7)% (22.8)%
Fee-based income 4.3 7.5 (42.6) (45.6)
Gross profit 37.4 47.6 (21.5) (28.3)
SG&A expenses excluding
restructuring charges 35.2 51.4 (31.4)
Restructuring charges 4.9 3.0 60.0
Total SG&A expenses 40.1 54.4 (26.3) (32.5)
Earnings from operations (2.7) (6.8) 59.9
Earnings from operations
excluding restructuring
charges 2.2 (3.8) NM
Gross profit rate 15.7% 16.8% (1.1)pts.
Expense rates (excluding
restructuring charges):
% of revenue 14.8 18.1 (3.3)
% of gross profit 94.2 107.8 (13.6)
Operating margin (excluding
restructuring charges) 0.9 (1.3) 2.2
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
-----------------------------------------
Constant
2009 2008 Currency
(14 Weeks)(13 Weeks) Change Change
-------- -------- -------- -------
EMEA PT
Revenue from services
(including fee-based income) $ 39.6 $ 38.4 3.0 % (6.1)%
Fee-based income 3.6 5.5 (34.4) (37.4)
Gross profit 9.8 11.2 (12.7) (19.4)
Total SG&A expenses 10.6 11.7 (9.5) (17.1)
Earnings from operations (0.8) (0.5) (58.0)
Gross profit rate 24.7% 29.1% (4.4)pts.
Expense rates:
% of revenue 26.8 30.5 (3.7)
% of gross profit 108.5 104.7 3.8
Operating margin (2.1) (1.4) (0.7)
APAC Commercial
Revenue from services
(including fee-based income) $ 83.0 $ 73.5 12.9 % (2.2)%
Fee-based income 2.9 3.0 (6.2) (15.2)
Gross profit 12.1 11.4 6.8 (7.8)
SG&A expenses excluding
restructuring charges 11.6 12.4 (7.2)
Restructuring charges 1.4 - NM
Total SG&A expenses 13.0 12.4 4.6 (9.8)
Earnings from operations (0.9) (1.0) 19.7
Earnings from operations
excluding restructuring
charges 0.5 (1.0) NM
Gross profit rate 14.6% 15.5% (0.9)pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.9 16.9 (3.0)
% of gross profit 95.0 109.3 (14.3)
Operating margin (excluding
restructuring charges) 0.7 (1.4) 2.1
APAC PT
Revenue from services
(including fee-based income) $ 7.2 $ 7.2 (0.4)% (15.9)%
Fee-based income 1.0 0.8 29.9 17.7
Gross profit 2.1 1.9 7.8 (7.0)
Total SG&A expenses 2.6 2.2 19.3 2.4
Earnings from operations (0.5) (0.3) (106.4)
Gross profit rate 28.6% 26.4% 2.2 pts.
Expense rates:
% of revenue 35.8 29.9 5.9
% of gross profit 125.2 113.1 12.1
Operating margin (7.2) (3.5) (3.7)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
-------------------------------------------
Constant
2009 2008 Currency
(14 Weeks) (13 Weeks) Change Change
--------- --------- ------- --------
OCG
Revenue from services
(including fee-based
income) $ 68.2 $ 68.4 (0.3)% (1.3)%
Fee-based income 6.0 7.2 (16.2) (19.6)
Gross profit 15.5 18.9 (18.0) (19.6)
SG&A expenses excluding
restructuring charges 17.9 18.0 (0.8)
Restructuring charges 1.3 0.4 239.5
Total SG&A expenses 19.2 18.4 4.1 1.1
Earnings from operations (3.7) 0.5 NM
Earnings from operations
excluding restructuring
charges (2.4) 0.9 NM
Gross profit rate 22.7% 27.6% (4.9)pts.
Expense rates (excluding
restructuring charges):
% of revenue 26.2 26.4 (0.2)
% of gross profit 115.7 95.6 20.1
Operating margin (excluding
restructuring charges) (3.6) 1.2 (4.8)
Corporate Expense
SG&A expenses excluding
restructuring charges $ 17.7 $ 20.6 (14.2)%
Restructuring charges 1.5 0.3 418.1
Total SG&A expenses 19.2 20.9 (8.1) (8.1)
Asset Impairments $ - $ 80.5 (100.0)%
Consolidated Total (excluding
intersegment activity)
Revenue from services
(including fee-based
income) $ 1,194.1 $ 1,279.1 (6.6)% (10.0)%
Fee-based income 21.5 30.5 (29.5) (33.0)
Gross profit 188.3 224.6 (16.2) (19.4)
SG&A expenses excluding
restructuring charges 187.9 223.5 (16.0)
Restructuring charges 13.4 4.3 209.0
Total SG&A expenses 201.3 227.8 (11.7) (15.1)
Earnings from operations (13.0) (83.7) 84.5
Earnings from operations
excluding restructuring
charges 0.4 (79.4) NM
Gross profit rate 15.8% 17.6% (1.8)pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.7 17.5 (1.8)
% of gross profit 99.8 99.4 0.4
Operating margin (excluding
restructuring charges) 0.0 (6.2) 6.2
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
--------------------------------------------
Constant
2009 2008 Currency
(53 Weeks) (52 Weeks) Change Change
--------- --------- --------- --------
Americas Commercial
Revenue from services
(including fee-based
income) $ 1,980.3 $ 2,516.7 (21.3) % (20.3)%
Fee-based income 6.6 15.7 (58.4) (56.8)
Gross profit 290.7 399.0 (27.1) (26.3)
SG&A expenses excluding
restructuring charges 273.2 328.2 (16.7)
Restructuring charges 7.2 0.9 NM
Total SG&A expenses 280.4 329.1 (14.8) (13.8)
Earnings from operations 10.3 69.9 (85.1)
Earnings from operations
excluding restructuring
charges 17.5 70.8 (75.2)
Gross profit rate 14.7% 15.9% (1.2)pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.8 13.0 0.8
% of gross profit 93.9 82.2 11.7
Operating margin
(excluding restructuring
charges) 0.9 2.8 (1.9)
Americas PT
Revenue from services
(including fee-based
income) $ 792.6 $ 938.2 (15.5)% (15.4)%
Fee-based income 9.4 19.4 (51.5) (51.4)
Gross profit 125.1 161.7 (22.6) (22.5)
SG&A expenses excluding
restructuring charges 100.9 113.3 (10.9)
Restructuring charges 1.0 - NM
Total SG&A expenses 101.9 113.3 (10.0) (9.8)
Earnings from operations 23.2 48.4 (52.2)
Earnings from operations
excluding restructuring
charges 24.2 48.4 (50.0)
Gross profit rate 15.8% 17.2% (1.4)pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.7 12.1 0.6
% of gross profit 80.7 70.1 10.6
Operating margin
(excluding restructuring
charges) 3.0 5.2 (2.2)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 895.2 $ 1,310.5 (31.7)% (24.9)%
Fee-based income 16.6 39.5 (58.0) (52.6)
Gross profit 140.2 227.3 (38.4) (32.5)
SG&A expenses excluding
restructuring charges 150.3 226.5 (33.7)
Restructuring charges 15.6 3.9 301.4
Total SG&A expenses 165.9 230.4 (28.0) (20.2)
Earnings from operations (25.7) (3.1) NM
Earnings from operations
excluding restructuring
charges (10.1) 0.8 NM
Gross profit rate 15.7% 17.4% (1.7)pts.
Expense rates (excluding
restructuring charges):
% of revenue 16.8 17.3 (0.5)
% of gross profit 107.2 99.6 7.6
Operating margin
(excluding restructuring
charges) (1.1) 0.1 (1.2)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
December Year to Date
----------------------------------------
Constant
2009 2008 Currency
(53 Weeks)(52 Weeks) Change Change
-------- -------- -------- -------
EMEA PT
Revenue from services
(including fee-based income) $ 141.9 $ 172.5 (17.8)% (10.7)%
Fee-based income 15.7 26.8 (41.2) (33.2)
Gross profit 37.8 51.2 (26.2) (18.8)
Total SG&A expenses 40.6 48.9 (16.9) (8.5)
Earnings from operations (2.8) 2.3 NM
Gross profit rate 26.6% 29.7% (3.1)pts.
Expense rates:
% of revenue 28.6 28.3 0.3
% of gross profit 107.6 95.5 12.1
Operating margin (2.0) 1.3 (3.3)
APAC Commercial
Revenue from services
(including fee-based income) $ 284.9 $ 336.0 (15.2)% (11.0)%
Fee-based income 9.7 17.0 (43.0) (40.6)
Gross profit 41.6 56.3 (26.1) (22.6)
SG&A expenses excluding
restructuring charges 44.6 56.6 (21.3)
Restructuring charges 1.6 - NM
Total SG&A expenses 46.2 56.6 (18.5) (14.8)
Earnings from operations (4.6) (0.3) NM
Earnings from operations
excluding restructuring
charges (3.0) (0.3) NM
Gross profit rate 14.6% 16.8% (2.2)pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.6 16.8 (1.2)
% of gross profit 107.0 100.5 6.5
Operating margin (excluding
restructuring charges) (1.0) (0.1) (0.9)
APAC PT
Revenue from services
(including fee-based income) $ 25.4 $ 34.3 (26.0)% (24.3)%
Fee-based income 3.8 5.1 (25.0) (21.0)
Gross profit 7.7 10.2 (25.1) (22.6)
Total SG&A expenses 9.2 10.7 (14.2) (9.9)
Earnings from operations (1.5) (0.5) (224.9)
Gross profit rate 30.2% 29.8% 0.4 pts.
Expense rates:
% of revenue 36.2 31.2 5.0
% of gross profit 119.8 104.6 15.2
Operating margin (6.0) (1.4) (4.6)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
December Year to Date
------------------------------------------
Constant
2009 2008 Currency
(53 Weeks) (52 Weeks) Change Change
--------- --------- -------- --------
OCG
Revenue from services
(including fee-based
income) $ 219.9 $ 233.3 (5.7)% (4.7)%
Fee-based income 24.4 27.8 (12.3) (9.4)
Gross profit 59.7 72.9 (18.0) (16.1)
SG&A expenses excluding
restructuring charges 69.6 69.5 0.0
Restructuring charges 1.9 0.5 328.4
Total SG&A expenses 71.5 70.0 2.0 4.3
Earnings from operations (11.8) 2.9 NM
Earnings from operations
excluding restructuring
charges (9.9) 3.4 NM
Gross profit rate 27.2% 31.2% (4.0)pts.
Expense rates (excluding
restructuring charges):
% of revenue 31.7 29.8 1.9
% of gross profit 116.6 95.6 21.0
Operating margin (excluding
restructuring charges) (4.5) 1.4 (5.9)
Corporate Expense
SG&A expenses excluding
restructuring charges $ 77.5 $ 108.2 (28.4)%
Restructuring charges 2.6 1.2 116.3
Total SG&A expenses 80.1 109.4 (26.8) (26.8)
Asset Impairments $ 53.1 $ 80.5 (34.1)%
Consolidated Total (excluding
intersegment activity)
Revenue from services
(including fee-based
income) $ 4,314.8 $ 5,517.3 (21.8)% (19.2)%
Fee-based income 86.1 151.3 (43.1) (39.2)
Gross profit 701.7 977.6 (28.2) (25.7)
SG&A expenses excluding
restructuring charges 764.8 960.9 (20.4)
Restructuring charges 29.9 6.5 360.9
Total SG&A expenses 794.7 967.4 (17.9) (14.8)
Earnings from operations (146.1) (70.3) (107.8)
Earnings from operations
excluding restructuring
charges (116.2) (63.8) (82.0)
Gross profit rate 16.3% 17.7% (1.4)pts.
Expense rates (excluding
restructuring charges):
% of revenue 17.7 17.4 0.3
% of gross profit 109.0 98.3 10.7
Operating margin (excluding
restructuring charges) (2.7) (1.2) (1.5)
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions of dollars)
January 3, December 28,
2010 2008
------------ ------------
Current Assets
Cash and equivalents $ 88.9 $ 118.3
Trade accounts receivable, less allowances of
$15.0 and $17.0, respectively 717.9 815.8
Prepaid expenses and other current assets 70.6 62.0
Deferred taxes 21.0 31.9
------------ ------------
Total current assets 898.4 1,028.0
Property and Equipment, Net 127.1 151.3
Noncurrent Deferred Taxes 77.5 40.0
Goodwill, Net 67.3 117.8
Other Assets 131.4 120.2
------------ ------------
Total Assets $ 1,301.7 $ 1,457.3
============ ============
Current Liabilities
Short-term borrowings and current portion of
long-term debt $ 79.6 $ 35.2
Accounts payable and accrued liabilities 182.6 244.1
Accrued payroll and related taxes 208.3 243.2
Accrued insurance 19.7 26.3
Income and other taxes 47.4 51.8
------------ ------------
Total current liabilities 537.6 600.6
Noncurrent Liabilities
Long-term debt 57.5 80.0
Accrued insurance 47.3 46.9
Accrued retirement benefits 76.9 61.6
Other long-term liabilities 16.0 15.3
------------ ------------
Total noncurrent liabilities 197.7 203.8
Stockholders' Equity
Common stock 40.1 40.1
Treasury stock (107.2) (111.2)
Paid-in capital 36.9 35.8
Earnings invested in the business 571.5 676.0
Accumulated other comprehensive income 25.1 12.2
------------ ------------
Total stockholders' equity 566.4 652.9
------------ ------------
Total Liabilities and Stockholders' Equity $ 1,301.7 $ 1,457.3
============ ============
------------ ------------
STATISTICS:
Working Capital $ 360.8 $ 427.4
Current Ratio 1.7 1.7
Debt-to-capital % 19.5% 15.0%
Global Days Sales Outstanding 51 50
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 53 WEEKS ENDED JANUARY 3, 2010 AND 52 WEEKS ENDED DECEMBER 28, 2008
(In millions of dollars)
2009 2008
--------- ---------
Cash flows from operating activities
Net loss $ (104.5) $ (82.2)
Noncash adjustments:
Impairment of assets 53.1 80.5
Depreciation and amortization 40.9 46.0
Provision for bad debts 2.2 6.7
Stock-based compensation 5.1 4.4
Other, net (2.2) 3.7
Changes in operating assets and liabilities (11.8) 42.5
--------- ---------
Net cash from operating activities (17.2) 101.6
--------- ---------
Cash flows from investing activities
Capital expenditures (13.1) (31.1)
Acquisition of companies, net of cash received (7.5) (32.7)
Other investing activities (2.8) (0.2)
--------- ---------
Net cash from investing activities (23.4) (64.0)
--------- ---------
Cash flows from financing activities
Net change in revolving line of credit 52.7 (34.2)
Repayment of debt (30.5) -
Proceeds from debt - 42.5
Dividend payments - (19.1)
Purchase of treasury stock - (8.0)
Other financing activities (12.8) 10.0
--------- ---------
Net cash from financing activities 9.4 (8.8)
--------- ---------
Effect of exchange rates on cash and equivalents 1.8 (3.3)
--------- ---------
Net change in cash and equivalents (29.4) 25.5
Cash and equivalents at beginning of period 118.3 92.8
--------- ---------
Cash and equivalents at end of period $ 88.9 $ 118.3
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Fourth Quarter (Commercial, PT and OCG)
---------------------------------------------
% Change
2009 2008 Constant
(14 Weeks) (13 Weeks) US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 733.1 $ 781.5 (6.2)% (6.2)%
Canada 51.5 50.2 2.7 (9.9)
Mexico 19.0 18.1 5.3 6.6
Puerto Rico 15.0 18.7 (19.7) (19.7)
----------- -----------
Total Americas 818.6 868.5 (5.7) (6.4)
EMEA
France 78.7 75.1 4.7 (6.2)
United Kingdom 43.1 80.7 (46.5) (48.1)
Switzerland 38.8 41.4 (6.4) (17.5)
Russia 19.9 22.3 (10.8) (3.3)
Portugal 19.4 15.6 24.4 11.3
Italy 19.0 25.2 (24.8) (32.9)
Germany 17.6 17.7 0.3 (10.5)
Norway 17.3 16.9 1.7 (14.2)
Other 29.0 32.7 (11.4) (20.1)
----------- -----------
Total EMEA 282.8 327.6 (13.7) (21.0)
APAC
Australia 30.4 26.0 16.9 (13.1)
Singapore 17.9 16.1 10.9 4.1
Malaysia 13.7 12.3 12.3 7.7
Other 30.7 28.6 7.0 (3.8)
----------- -----------
Total APAC 92.7 83.0 11.6 (3.5)
Total Kelly Services, Inc. $ 1,194.1 $ 1,279.1 (6.6)% (10.0)%
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
December Year to Date (Commercial, PT and OCG)
----------------------------------------------
% Change
2009 2008 Constant
(53 Weeks) (52 Weeks) US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 2,634.3 $ 3,237.1 (18.6)% (18.6)%
Canada 183.4 237.8 (22.9) (17.5)
Mexico 66.5 76.2 (12.7) 6.2
Puerto Rico 57.9 77.4 (25.2) (25.2)
----------- -----------
Total Americas 2,942.1 3,628.5 (18.9) (18.2)
EMEA
France 272.7 350.8 (22.3) (18.3)
United Kingdom 206.7 398.0 (48.1) (37.0)
Switzerland 138.6 184.9 (25.1) (25.2)
Italy 72.9 131.9 (44.7) (41.5)
Russia 65.4 90.9 (28.0) (8.9)
Germany 65.1 83.0 (21.5) (17.2)
Norway 61.7 86.1 (28.4) (18.9)
Portugal 59.5 27.5 116.5 124.9
Other 111.2 154.4 (28.0) (22.1)
----------- -----------
Total EMEA 1,053.8 1,507.5 (30.1) (23.3)
APAC
Australia 98.3 133.7 (26.4) (21.3)
Singapore 64.4 71.3 (9.6) (7.3)
Malaysia 50.1 55.2 (9.2) (4.1)
Other 106.1 121.1 (12.5) (9.0)
----------- -----------
Total APAC 318.9 381.3 (16.4) (12.3)
Total Kelly Services, Inc. $ 4,314.8 $ 5,517.3 (21.8)% (19.2)%
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
December
Fourth Quarter Year to Date
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Pretax loss from operations $ (13.0) $ (83.7) $ (146.1) $ (70.3)
Restructuring charges (Note 1) 13.4 4.3 29.9 6.5
Asset impairments (Note 2) - 80.5 53.1 80.5
Litigation charges - - 5.3 22.5
-------- -------- -------- --------
Earnings (loss) from operations
excluding restructuring, asset
impairment and litigation charges $ 0.4 $ 1.1 $ (57.8) $ 39.2
======== ======== ======== ========
Fourth Quarter
--------------------------------------
2009 2008
------------------ ------------------
Per Per
Amount Share Amount Share
-------- -------- -------- --------
Loss from continuing operations,
net of tax $ (8.2) $ (0.23) $ (88.6) $ (2.55)
Restructuring charges, net of
taxes (Note 1) 10.1 0.29 3.7 0.11
Asset impairments, net of taxes
(Note 2) - - 77.2 2.22
-------- --------
Earnings (loss) from continuing
operations excluding restructuring
and asset impairment charges, net
of taxes $ 1.9 $ 0.05 $ (7.7) $ (0.22)
======== ======== ======== ========
December Year to Date
--------------------------------------
2009 2008
------------------ ------------------
Per Per
Amount Share Amount Share
-------- -------- -------- --------
Loss from continuing operations,
net of tax $ (105.1) $ (3.01) $ (81.7) $ (2.35)
Restructuring charges, net of
taxes (Note 1) 24.0 0.69 5.3 0.15
Asset impairments, net of taxes
(Note 2) 50.0 1.43 77.2 2.22
Litigation charges, net of taxes 3.3 0.09 13.9 0.40
-------- --------
(Loss) earnings from continuing
operations excluding restructuring,
asset impairment and litigation
charges, net of taxes $ (27.8) $ (0.80) $ 14.7 $ 0.42
======== ======== ======== ========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting
Principles) information excluding the impairment, restructuring and
litigation charges is useful to understand the Company's fiscal 2009
financial performance and increases comparability. Specifically,
Management believes that excluding these items allows for a more meaningful
comparison of current period operating performance with the operating
results of prior periods. These non-GAAP measures may have limitations as
analytical tools because they exclude items which can have a material
impact on cash flow and earnings per share. As a result, Management
considers these measures, along with reported results, when it reviews and
evaluates the Company's financial performance. Management believes that
these measures provide greater transparency to investors and provide
insight into how Management is evaluating the Company's financial
performance. Non-GAAP measures should not be considered a substitute for,
or superior to, measures of financial performance prepared in accordance
with GAAP.
(1) Restructuring charges represent global costs incurred in connection
with the reduction in the number of permanent employees and the
consolidation, sale or closure of branch locations. These costs
include severance, lease terminations, asset write-offs and other
miscellaneous costs.
(2) For 2009, asset impairment charges include adjustments to the value of
goodwill for the Company's Americas Commercial, EMEA PT and APAC
Commercial reporting segments, and long-lived assets and intangible
assets related to Japan and Europe. For 2008, asset impairment charges
include adjustments to the value of goodwill for the Company's EMEA
Commercial segment, the Company's investment in Tempstaff, and assets
related to operations in the U.K.
Contact Information: ANALYST CONTACT: James Polehna (248) 244-4586 james_polehna@kellyservices.com MEDIA CONTACT: Jane Stehney (248) 244-5630 jane_stehney@kellyservices.com