Attached files
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8-K - 8-K - KELLY SERVICES INC | c16488e8vk.htm |
Exhibit 99.1
KELLY SERVICES REPORTS 1st QUARTER 2011 RESULTS
TROY, MI (May 11, 2011) Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ:
KELYB), a leader in providing workforce solutions, today announced results for the first
quarter.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the first quarter
of 2011 totaled $1.3 billion, a 19% increase compared to the corresponding quarter in 2010.
Earnings from operations for the first quarter of 2011 totaled $1.6 million, compared to
losses from operations of $1.6 million reported for the first quarter of 2010. Included in the
results from operations are restructuring charges of $4.0 million in the first quarter of 2011 and
$4.4 million in the first quarter of 2010. Excluding restructuring charges, earnings from
operations were $5.6 million in the first quarter of 2011 and $2.8 million in the first quarter of
2010.
Diluted earnings per share in the first quarter of 2011 were $0.03 compared to first quarter
2010 losses of $0.06 per share. Excluding restructuring charges, diluted earnings per share were
$0.14 in the first quarter of 2011 and $0.05 in the first quarter of 2010.
Commenting on the first quarter results, Camden stated, We continue to see evidence of a
solid, sustainable economic recovery. Kellys revenue growth for the period certainly confirms
that we are on track for a profitable year.
Camden added, Until full confidence is restored, and employers remain cautious about ramping
up too aggressively, this environment seems to favor the staffing industry and we intend to
capitalize on the opportunities presented.
Going forward, Kelly is committed to improving our competitive position and enhancing
shareholder value by delivering customer-focused workforce solutions spanning traditional
staffing, professional and technical offerings, and outsourcing and consulting services, and
maintaining talent excellence throughout our company.
In conjunction with its first quarter earnings release, Kelly Services, Inc. will host a
conference call at 9:00 a.m. (ET) on May 11, 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
www.kellyservices.com
5
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, 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, further impairment charges
initiated 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, 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 recent U.S. healthcare legislation 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 Companys 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 530,000 employees annually. Revenue in 2010 was $5.0 billion.
Visit www.kellyservices.com and connect with us on facebook.com/kellyservices,
linkedin.com/companies/kelly-services and twitter.com/kellyservices.
#
ANALYST CONTACT:
|
MEDIA CONTACT: | |
James Polehna
|
Jane Stehney | |
(248) 244-4586
|
(248) 244-5630 | |
james_polehna@kellyservices.com
|
jane_stehney@kellyservices.com |
6
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars except per share data)
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2011 | 2010 | Change | % Change | |||||||||||||
Revenue from services |
$ | 1,339.1 | $ | 1,130.4 | $ | 208.7 | 18.5 | % | ||||||||
Cost of services |
1,125.4 | 950.4 | 175.0 | 18.4 | ||||||||||||
Gross profit |
213.7 | 180.0 | 33.7 | 18.7 | ||||||||||||
Selling, general and administrative
expenses |
212.1 | 181.6 | 30.5 | 16.8 | ||||||||||||
Earnings (loss) from operations |
1.6 | (1.6 | ) | 3.2 | NM | |||||||||||
Other expense, net |
(0.4 | ) | (1.1 | ) | 0.7 | 60.5 | ||||||||||
Earnings (loss) before taxes |
1.2 | (2.7 | ) | 3.9 | NM | |||||||||||
Income taxes |
0.1 | (0.7 | ) | 0.8 | 107.7 | |||||||||||
Net earnings (loss) |
$ | 1.1 | $ | (2.0 | ) | $ | 3.1 | NM | % | |||||||
Earnings (loss) per share |
||||||||||||||||
Basic |
$ | 0.03 | $ | (0.06 | ) | $ | 0.09 | NM | % | |||||||
Diluted |
$ | 0.03 | $ | (0.06 | ) | $ | 0.09 | NM | % | |||||||
STATISTICS: |
||||||||||||||||
Gross profit rate |
16.0 | % | 15.9 | % | 0.1 | pts. | ||||||||||
Selling, general and administrative expenses: |
||||||||||||||||
% of revenue |
15.8 | 16.1 | (0.3 | ) | ||||||||||||
% of gross profit |
99.2 | 100.9 | (1.7 | ) | ||||||||||||
% Return Earnings (loss) from operations |
0.1 | (0.1 | ) | 0.2 | ||||||||||||
Earnings (loss) before taxes |
0.1 | (0.2 | ) | 0.3 | ||||||||||||
Net earnings (loss) |
0.1 | (0.2 | ) | 0.3 | ||||||||||||
Effective income tax rate |
4.5 | % | 26.4 | % | (21.9 | )pts. | ||||||||||
Average number of shares outstanding
(millions): |
||||||||||||||||
Basic |
36.7 | 35.0 | ||||||||||||||
Diluted |
36.7 | 35.0 | ||||||||||||||
Shares adjusted for nonvested restricted awards
(millions): |
||||||||||||||||
Basic |
37.4 | N/A | ||||||||||||||
Diluted |
37.4 | N/A |
7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
First Quarter | ||||||||||||||||
Constant | ||||||||||||||||
Currency | ||||||||||||||||
2011 | 2010 | Change | Change | |||||||||||||
Americas Commercial |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 653.3 | $ | 547.7 | 19.3 | % | 18.5 | % | ||||||||
Fee-based income |
2.8 | 2.1 | 34.2 | 32.6 | ||||||||||||
Gross profit |
92.5 | 78.5 | 17.8 | 17.1 | ||||||||||||
SG&A expenses excluding restructuring charges |
75.8 | 65.1 | 16.6 | |||||||||||||
Restructuring charges |
| 0.3 | (100.0 | ) | ||||||||||||
Total SG&A expenses |
75.8 | 65.4 | 16.0 | 15.4 | ||||||||||||
Earnings from operations |
16.7 | 13.1 | 26.8 | |||||||||||||
Earnings from operations excluding restructuring charges |
16.7 | 13.4 | 23.4 | |||||||||||||
Gross profit rate |
14.2 | % | 14.3 | % | (0.1 | )pts. | ||||||||||
Expense rates (excluding restructuring charges): |
||||||||||||||||
% of revenue |
11.6 | 11.9 | (0.3 | ) | ||||||||||||
% of gross profit |
82.0 | 82.8 | (0.8 | ) | ||||||||||||
Operating margin (excluding restructuring charges) |
2.6 | 2.5 | 0.1 | |||||||||||||
Americas PT |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 240.6 | $ | 205.6 | 17.0 | % | 16.9 | % | ||||||||
Fee-based income |
2.8 | 2.3 | 21.2 | 21.0 | ||||||||||||
Gross profit |
36.1 | 31.5 | 14.5 | 14.4 | ||||||||||||
Total SG&A expenses |
27.6 | 23.0 | 19.8 | 19.7 | ||||||||||||
Earnings from operations |
8.5 | 8.5 | 0.2 | |||||||||||||
Gross profit rate |
15.0 | % | 15.3 | % | (0.3 | )pts. | ||||||||||
Expense rates: |
||||||||||||||||
% of revenue |
11.5 | 11.2 | 0.3 | |||||||||||||
% of gross profit |
76.4 | 73.0 | 3.4 | |||||||||||||
Operating margin |
3.5 | 4.1 | (0.6 | ) | ||||||||||||
EMEA Commercial |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 231.5 | $ | 204.9 | 13.0 | % | 10.1 | % | ||||||||
Fee-based income |
5.8 | 4.8 | 19.4 | 16.1 | ||||||||||||
Gross profit |
37.3 | 32.8 | 13.7 | 10.8 | ||||||||||||
SG&A expenses excluding restructuring charges |
35.3 | 32.4 | 9.0 | |||||||||||||
Restructuring charges |
4.0 | 2.7 | 47.9 | |||||||||||||
Total SG&A expenses |
39.3 | 35.1 | 12.0 | 8.1 | ||||||||||||
Earnings from operations |
(2.0 | ) | (2.3 | ) | 13.1 | |||||||||||
Earnings from operations excluding restructuring charges |
2.0 | 0.4 | 378.2 | |||||||||||||
Gross profit rate |
16.1 | % | 16.0 | % | 0.1 | pts. | ||||||||||
Expense rates (excluding restructuring charges): |
||||||||||||||||
% of revenue |
15.2 | 15.8 | (0.6 | ) | ||||||||||||
% of gross profit |
94.6 | 98.7 | (4.1 | ) | ||||||||||||
Operating margin (excluding restructuring charges) |
0.9 | 0.2 | 0.7 |
8
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
First Quarter | ||||||||||||||||
Constant | ||||||||||||||||
Currency | ||||||||||||||||
2011 | 2010 | Change | Change | |||||||||||||
EMEA PT |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 41.4 | $ | 34.9 | 18.6 | % | 16.3 | % | ||||||||
Fee-based income |
4.4 | 3.7 | 18.5 | 15.7 | ||||||||||||
Gross profit |
11.0 | 9.4 | 16.6 | 14.4 | ||||||||||||
Total SG&A expenses |
10.7 | 9.5 | 12.4 | 9.0 | ||||||||||||
Earnings from operations |
0.3 | (0.1 | ) | NM | ||||||||||||
Gross profit rate |
26.6 | % | 27.1 | % | (0.5 | )pts. | ||||||||||
Expense rates: |
||||||||||||||||
% of revenue |
25.9 | 27.3 | (1.4 | ) | ||||||||||||
% of gross profit |
97.3 | 101.0 | (3.7 | ) | ||||||||||||
Operating margin |
0.7 | (0.3 | ) | 1.0 | ||||||||||||
APAC Commercial |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 99.7 | $ | 80.9 | 23.2 | % | 13.5 | % | ||||||||
Fee-based income |
3.5 | 2.8 | 26.6 | 16.4 | ||||||||||||
Gross profit |
13.5 | 11.4 | 18.7 | 8.8 | ||||||||||||
SG&A expenses excluding restructuring charges |
13.3 | 9.9 | 35.1 | |||||||||||||
Restructuring charges |
| 0.5 | (100.0 | ) | ||||||||||||
Total SG&A expenses |
13.3 | 10.4 | 28.1 | 17.7 | ||||||||||||
Earnings from operations |
0.2 | 1.0 | (82.8 | ) | ||||||||||||
Earnings from operations excluding restructuring charges |
0.2 | 1.5 | (89.0 | ) | ||||||||||||
Gross profit rate |
13.6 | % | 14.1 | % | (0.5 | )pts. | ||||||||||
Expense rates (excluding restructuring charges): |
||||||||||||||||
% of revenue |
13.4 | 12.2 | 1.2 | |||||||||||||
% of gross profit |
98.8 | 86.8 | 12.0 | |||||||||||||
Operating margin (excluding restructuring charges) |
0.2 | 1.9 | (1.7 | ) | ||||||||||||
APAC PT |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 11.5 | $ | 7.6 | 50.6 | % | 40.6 | % | ||||||||
Fee-based income |
3.8 | 1.9 | 104.0 | 90.0 | ||||||||||||
Gross profit |
5.0 | 2.8 | 79.4 | 66.8 | ||||||||||||
Total SG&A expenses |
5.7 | 3.8 | 52.9 | 42.2 | ||||||||||||
Earnings from operations |
(0.7 | ) | (1.0 | ) | 25.6 | |||||||||||
Gross profit rate |
43.7 | % | 36.7 | % | 7.0 | pts. | ||||||||||
Expense rates: |
||||||||||||||||
% of revenue |
49.8 | 49.1 | 0.7 | |||||||||||||
% of gross profit |
114.0 | 133.8 | (19.8 | ) | ||||||||||||
Operating margin |
(6.1 | ) | (12.4 | ) | 6.3 |
9
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
First Quarter | ||||||||||||||||
Constant | ||||||||||||||||
Currency | ||||||||||||||||
2011 | 2010 | Change | Change | |||||||||||||
OCG |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 68.2 | $ | 55.3 | 23.4 | % | 22.7 | % | ||||||||
Fee-based income |
8.7 | 6.1 | 42.6 | 39.6 | ||||||||||||
Gross profit |
18.9 | 14.0 | 35.5 | 33.9 | ||||||||||||
SG&A expenses excluding restructuring charges |
21.3 | 18.4 | 15.4 | |||||||||||||
Restructuring charges |
| 0.1 | (100.0 | ) | ||||||||||||
Total SG&A expenses |
21.3 | 18.5 | 14.9 | 13.0 | ||||||||||||
Earnings from operations |
(2.4 | ) | (4.5 | ) | 48.0 | |||||||||||
Earnings from operations excluding restructuring charges |
(2.4 | ) | (4.4 | ) | 47.1 | |||||||||||
Gross profit rate |
27.7 | % | 25.3 | % | 2.4 | pts. | ||||||||||
Expense rates (excluding restructuring charges): |
||||||||||||||||
% of revenue |
31.2 | 33.4 | (2.2 | ) | ||||||||||||
% of gross profit |
112.5 | 132.1 | (19.6 | ) | ||||||||||||
Operating margin (excluding restructuring charges) |
(3.5 | ) | (8.1 | ) | 4.6 | |||||||||||
Corporate Expense |
||||||||||||||||
SG&A expenses excluding restructuring charges |
$ | 19.0 | $ | 15.5 | 22.0 | % | ||||||||||
Restructuring charges |
| 0.8 | (100.0 | ) | ||||||||||||
Total SG&A expenses |
19.0 | 16.3 | 16.3 | |||||||||||||
Consolidated Total (net of intersegment activity) |
||||||||||||||||
Revenue from services (including fee-based income) |
$ | 1,339.1 | $ | 1,130.4 | 18.5 | % | 16.7 | % | ||||||||
Fee-based income |
31.8 | 23.7 | 34.3 | 29.9 | ||||||||||||
Gross profit |
213.7 | 180.0 | 18.7 | 16.8 | ||||||||||||
SG&A expenses excluding restructuring charges |
208.1 | 177.2 | 17.4 | |||||||||||||
Restructuring charges |
4.0 | 4.4 | (10.3 | ) | ||||||||||||
Total SG&A expenses |
212.1 | 181.6 | 16.8 | 14.6 | ||||||||||||
Earnings from operations |
1.6 | (1.6 | ) | NM | ||||||||||||
Earnings from operations excluding restructuring charges |
5.6 | 2.8 | 95.7 | |||||||||||||
Gross profit rate |
16.0 | % | 15.9 | % | 0.1 | pts. | ||||||||||
Expense rates (excluding restructuring charges): |
||||||||||||||||
% of revenue |
15.5 | 15.7 | (0.2 | ) | ||||||||||||
% of gross profit |
97.4 | 98.4 | (1.0 | ) | ||||||||||||
Operating margin (excluding restructuring charges) |
0.4 | 0.3 | 0.1 |
10
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
January 2, | ||||||||||||
April 3, 2011 | 2011 | April 4, 2010 | ||||||||||
Current Assets |
||||||||||||
Cash and equivalents |
$ | 59.8 | $ | 80.5 | $ | 55.7 | ||||||
Trade accounts receivable, less allowances of
$13.2, $12.3 and $14.4, respectively |
875.8 | 810.9 | 727.3 | |||||||||
Prepaid expenses and other current assets |
68.4 | 44.8 | 79.7 | |||||||||
Deferred taxes |
17.4 | 22.4 | 18.4 | |||||||||
Total current assets |
1,021.4 | 958.6 | 881.1 | |||||||||
Property and Equipment, Net |
99.5 | 104.0 | 120.0 | |||||||||
Noncurrent Deferred Taxes |
83.9 | 84.0 | 76.9 | |||||||||
Goodwill, Net |
67.3 | 67.3 | 67.3 | |||||||||
Other Assets |
154.9 | 154.5 | 144.7 | |||||||||
Total Assets |
$ | 1,427.0 | $ | 1,368.4 | $ | 1,290.0 | ||||||
Current Liabilities |
||||||||||||
Short-term borrowings and current portion
of long-term debt |
$ | 65.4 | $ | 78.8 | $ | 68.2 | ||||||
Accounts payable and accrued liabilities |
207.3 | 181.6 | 165.8 | |||||||||
Accrued payroll and related taxes |
270.9 | 243.3 | 218.2 | |||||||||
Accrued insurance |
31.5 | 31.3 | 22.5 | |||||||||
Income and other taxes |
61.7 | 56.0 | 46.5 | |||||||||
Total current liabilities |
636.8 | 591.0 | 521.2 | |||||||||
Noncurrent Liabilities |
||||||||||||
Long-term debt |
| | 56.1 | |||||||||
Accrued insurance |
54.1 | 53.6 | 53.7 | |||||||||
Accrued retirement benefits |
90.2 | 85.4 | 77.7 | |||||||||
Other long-term liabilities |
14.2 | 14.6 | 15.5 | |||||||||
Total noncurrent liabilities |
158.5 | 153.6 | 203.0 | |||||||||
Stockholders Equity |
||||||||||||
Common stock |
40.1 | 40.1 | 40.1 | |||||||||
Treasury stock |
(70.8 | ) | (70.9 | ) | (106.7 | ) | ||||||
Paid-in capital |
29.3 | 28.0 | 37.4 | |||||||||
Earnings invested in the business |
598.7 | 597.6 | 569.5 | |||||||||
Accumulated other comprehensive income |
34.4 | 29.0 | 25.5 | |||||||||
Total stockholders equity |
631.7 | 623.8 | 565.8 | |||||||||
Total Liabilities and Stockholders Equity |
$ | 1,427.0 | $ | 1,368.4 | $ | 1,290.0 | ||||||
STATISTICS: |
||||||||||||
Working Capital |
$ | 384.6 | $ | 367.6 | $ | 359.9 | ||||||
Current Ratio |
1.6 | 1.6 | 1.7 | |||||||||
Debt-to-capital % |
9.4 | % | 11.2 | % | 18.0 | % | ||||||
Global Days Sales Outstanding |
52 | 49 | 51 |
11
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars)
2011 | 2010 | |||||||
Cash flows from operating activities |
||||||||
Net earnings (loss) |
$ | 1.1 | $ | (2.0 | ) | |||
Noncash adjustments: |
||||||||
Depreciation and amortization |
8.3 | 9.1 | ||||||
Provision for bad debts |
1.2 | 0.1 | ||||||
Stock-based compensation |
1.4 | 1.1 | ||||||
Other, net |
(0.1 | ) | 0.2 | |||||
Changes in operating assets and liabilities |
(16.9 | ) | (27.4 | ) | ||||
Net cash from operating activities |
(5.0 | ) | (18.9 | ) | ||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(2.5 | ) | (1.4 | ) | ||||
Other investing activities |
| 0.1 | ||||||
Net cash from investing activities |
(2.5 | ) | (1.3 | ) | ||||
Cash flows from financing activities |
||||||||
Net change in short-term borrowings |
48.3 | (11.2 | ) | |||||
Repayment of debt |
(62.9 | ) | | |||||
Other financing activities |
(1.0 | ) | | |||||
Net cash from financing activities |
(15.6 | ) | (11.2 | ) | ||||
Effect of exchange rates on cash and equivalents |
2.4 | (1.8 | ) | |||||
Net change in cash and equivalents |
(20.7 | ) | (33.2 | ) | ||||
Cash and equivalents at beginning of period |
80.5 | 88.9 | ||||||
Cash and equivalents at end of period |
$ | 59.8 | $ | 55.7 | ||||
12
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
First Quarter (Commercial, PT and OCG) | ||||||||||||||||
% Change | ||||||||||||||||
Constant | ||||||||||||||||
2011 | 2010 | US$ | Currency | |||||||||||||
Americas |
||||||||||||||||
United States |
$ | 839.7 | $ | 710.2 | 18.2 | % | 18.2 | % | ||||||||
Canada |
59.4 | 51.6 | 15.1 | 9.2 | ||||||||||||
Mexico |
25.1 | 19.0 | 32.1 | 25.0 | ||||||||||||
Puerto Rico |
22.1 | 14.7 | 49.6 | 49.6 | ||||||||||||
Total Americas |
946.3 | 795.5 | 18.9 | 18.4 | ||||||||||||
EMEA |
||||||||||||||||
France |
70.0 | 67.3 | 4.0 | 4.9 | ||||||||||||
Switzerland |
47.2 | 31.4 | 50.6 | 33.5 | ||||||||||||
Russia |
34.2 | 23.3 | 46.8 | 43.6 | ||||||||||||
United Kingdom |
31.1 | 37.6 | (17.4 | ) | (19.9 | ) | ||||||||||
Portugal |
20.6 | 18.4 | 12.3 | 12.8 | ||||||||||||
Germany |
20.3 | 16.3 | 24.7 | 25.5 | ||||||||||||
Italy |
16.6 | 16.7 | (0.8 | ) | (0.5 | ) | ||||||||||
Norway |
15.1 | 13.9 | 8.8 | 6.1 | ||||||||||||
Other |
23.2 | 19.2 | 20.7 | 20.3 | ||||||||||||
Total EMEA |
278.3 | 244.1 | 14.0 | 11.3 | ||||||||||||
APAC |
||||||||||||||||
Australia |
36.4 | 27.6 | 31.7 | 18.4 | ||||||||||||
Singapore |
26.1 | 18.9 | 38.1 | 25.6 | ||||||||||||
Malaysia |
17.6 | 14.6 | 20.7 | 9.3 | ||||||||||||
India |
17.6 | 13.7 | 28.5 | 26.8 | ||||||||||||
Other |
16.8 | 16.0 | 4.6 | (1.0 | ) | |||||||||||
Total APAC |
114.5 | 90.8 | 26.0 | 16.3 | ||||||||||||
Total Kelly Services, Inc. |
$ | 1,339.1 | $ | 1,130.4 | 18.5 | % | 16.7 | % | ||||||||
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KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
First Quarter | ||||||||
2011 | 2010 | |||||||
Pretax earnings (loss) from operations |
$ | 1.6 | $ | (1.6 | ) | |||
Restructuring charges (Note 1) |
4.0 | 4.4 | ||||||
Earnings from operations excluding restructuring
charges |
$ | 5.6 | $ | 2.8 | ||||
First Quarter | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
Net earnings (loss) |
$ | 1.1 | $ | 0.03 | $ | (2.0 | ) | $ | (0.06 | ) | ||||||
Restructuring charges, net of taxes (Note 1) |
4.0 | 0.11 | 3.6 | 0.10 | ||||||||||||
Net earnings
excluding restructuring charges, net of taxes |
$ | 5.1 | $ | 0.14 | $ | 1.6 | $ | 0.05 | ||||||||
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KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
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 Companys fiscal 2011 financial performance and
increases comparability. Specifically, Management believes that excluding this item 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 Companys financial performance. Management
believes that these measures provide greater transparency to investors and provide insight into how Management
is evaluating the Companys 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 2010, restructuring costs related primarily to severance and lease termination costs for branches in the EMEA and APAC Commercial segments that were in the process of closure at the end of 2009, as well as severance costs related to the corporate headquarters. In 2011, restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years. |
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