KELLY SERVICES INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - KELLY SERVICES INC	form8-k2015thirdquartercov.htm
EX-99.2 - EXHIBIT 99.2 - KELLY SERVICES INC	a3q32015pressreleaseslid.htm

Exhibit 99.1

KELLY SERVICES^® REPORTS STRONG THIRD QUARTER 2015

EARNINGS AND EPS GROWTH

Quarterly Highlights


•	Earnings from operations up 51%, excluding restructuring (up 72% in constant currency)


•	Earnings per share of $0.23 versus $0.10, excluding restructuring, a 130% increase year-over-year


•	OCG segment revenue up 15% year-over-year (up 17% in constant currency)


•	Total Company revenue down 3% year-over-year (up 3% in constant currency)

TROY, MI (November 4, 2015) -- Kelly Services (Nasdaq: KELYA) (Nasdaq: KELYB), a global leader in providing workforce solutions, today announced results for the third quarter of 2015.

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

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

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

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

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

In conjunction with its third quarter earnings release, Kelly Services has published a financial presentation regarding the third quarter results on the Investor Relations page of our public website and will host a conference call at 9:00 a.m. (ET) on November 4, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:


U.S.	1 800 288-9626


International	1 651 291-5254

The pass code is Kelly Services

Via the Internet:

The call is also available via the internet through the Kelly Services website:

www.kellyservices.com

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These factors include, but are not limited to, competitive market pressures including pricing and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of full-time employees to lead complex talent supply chain sales and operations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry or market developments, unexpected changes in claim trends on workers’ compensation, disability and medical benefit plans, the impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax laws and the expiration and/or reinstatement of the U.S. work opportunity credit program), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. Actual results may differ materially from any forward looking statements contained herein, and we have no intention to update these statements.

About Kelly Services^®

As a global leader in providing workforce solutions, Kelly Services, Inc. (Nasdaq: KELYA, KELYB) and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Kelly^®has a role in managing employment opportunities for more than one million workers around the globe by employing 550,000 of these individuals directly with the remaining workers engaged through its talent supply chain network of supplier partners. Revenue in 2014 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KLYA-FIN

# # #


ANALYST CONTACT:	MEDIA CONTACT:


James Polehna	Jane Stehney


(248) 244-4586	(248) 244-5630


james_polehna@kellyservices.com	jane_stehney@kellyservices.com



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
									%			CC %
		2015		2014		Change			Change			Change

Revenue from services	$	1,351.0	$	1,396.4	$	(45.4	)		(3.2	)	%	3.0	%

Cost of services		1,122.8		1,171.0		(48.2	)		(4.1	)

Gross profit		228.2		225.4		2.8			1.3			7.2

Selling, general and administrative expenses		211.6		218.3		(6.7	)		(3.0	)		2.0

Earnings from operations		16.6		7.1		9.5			134.9

Other expense, net		—		2.2		(2.2	)		(97.7	)

Earnings before taxes		16.6		4.9		11.7			242.2

Income tax expense		7.5		3.5		4.0			112.6

Net earnings	$	9.1	$	1.4	$	7.7			NM		%

Basic earnings per share	$	0.23	$	0.03	$	0.20			NM		%
Diluted earnings per share	$	0.23	$	0.03	$	0.20			NM		%


STATISTICS:

Gross profit rate		16.9	%	16.1	%	0.8		pts.

Selling, general and administrative expenses:
% of revenue		15.7		15.6		0.1
% of gross profit		92.7		96.9		(4.2	)

% Return:
Earnings from operations		1.2		0.5		0.7
Earnings before taxes		1.2		0.3		0.9
Net earnings		0.7		0.1		0.6

Effective income tax rate		45.2	%	72.7	%	(27.5	)	pts.

Average number of shares outstanding (millions):
Basic		37.9		37.6
Diluted		37.9		37.6

Shares adjusted for nonvested restricted awards (millions):
Basic		38.8		38.5
Diluted		38.8		38.5



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
									%			CC %
		2015		2014		Change			Change			Change

Revenue from services	$	4,056.6	$	4,137.7	$	(81.1	)		(2.0	)	%	3.7	%

Cost of services		3,385.8		3,461.9		(76.1	)		(2.2	)

Gross profit		670.8		675.8		(5.0	)		(0.7	)		4.6

Selling, general and administrative expenses		630.6		656.5		(25.9	)		(4.0	)		0.9

Earnings from operations		40.2		19.3		20.9			110.9

Other expense, net		3.5		4.2		(0.7	)		(14.5	)

Earnings before taxes		36.7		15.1		21.6			145.7

Income tax expense		17.1		8.4		8.7			104.4

Net earnings	$	19.6	$	6.7	$	12.9			198.2		%

Basic earnings per share	$	0.51	$	0.17	$	0.34			200.0		%
Diluted earnings per share	$	0.51	$	0.17	$	0.34			200.0		%


STATISTICS:

Gross profit rate		16.5	%	16.3	%	0.2		pts.

Selling, general and administrative expenses:
% of revenue		15.5		15.9		(0.4	)
% of gross profit		94.0		97.2		(3.2	)

% Return:
Earnings from operations		1.0		0.5		0.5
Earnings before taxes		0.9		0.4		0.5
Net earnings		0.5		0.2		0.3

Effective income tax rate		46.5	%	55.9	%	(9.4	)	pts.

Average number of shares outstanding (millions):
Basic		37.8		37.5
Diluted		37.8		37.5

Shares adjusted for nonvested restricted awards (millions):
Basic		38.8		38.5
Diluted		38.8		38.5



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

		Third Quarter
										Constant
										Currency
		2015			2014		Change			Change
AMERICAS
Commercial
Revenue from services	$	615.5		$	640.8		(4.0	)	%	(1.1	)	%
Staffing fee-based income included in revenue from services		3.8			3.8		(0.1	)		2.8
Gross profit		96.6			91.7		5.4			7.9
Gross profit rate		15.7	%		14.3	%	1.4		pts.
PT
Revenue from services	$	242.8		$	242.5		0.1		%	0.6		%
Staffing fee-based income included in revenue from services		4.7			4.4		8.6			9.7
Gross profit		41.0			39.6		3.6			4.1
Gross profit rate		16.9	%		16.3	%	0.6		pts.
Total Americas
Revenue from services	$	858.3		$	883.3		(2.8	)	%	(0.6	)	%
Staffing fee-based income included in revenue from services		8.5			8.2		4.6			6.5
Gross profit		137.6			131.3		4.8			6.7
Total SG&A expenses		113.7			110.8		2.6			4.5
Earnings from operations		23.9			20.5		16.9

Gross profit rate		16.0	%		14.9	%	1.1		pts.
Expense rates:
% of revenue		13.2			12.5		0.7
% of gross profit		82.7			84.5		(1.8	)
Return on sales		2.8			2.3		0.5

EMEA
Commercial
Revenue from services	$	199.0		$	231.3		(13.9	)	%	2.6		%
Staffing fee-based income included in revenue from services		3.2			4.2		(23.6	)		(4.5	)
Gross profit		27.7			33.6		(17.4	)		(1.4	)
Gross profit rate		13.9	%		14.5	%	(0.6	)	pts.
PT
Revenue from services	$	43.6		$	48.1		(9.3	)	%	7.5		%
Staffing fee-based income included in revenue from services		2.6			3.5		(24.1	)		(6.2	)
Gross profit		9.4			10.9		(13.3	)		4.6
Gross profit rate		21.6	%		22.6	%	(1.0	)	pts.
Total EMEA
Revenue from services	$	242.6		$	279.4		(13.1	)	%	3.5		%
Staffing fee-based income included in revenue from services		5.8			7.7		(23.8	)		(5.3	)
Gross profit		37.1			44.5		(16.4	)		0.1
Total SG&A expenses		31.8			40.0		(20.7	)		(6.2	)
Earnings from operations		5.3			4.5		22.4

Gross profit rate		15.3	%		15.9	%	(0.6	)	pts.
Expense rates:
% of revenue		13.1			14.3		(1.2	)
% of gross profit		85.4			90.0		(4.6	)
Return on sales		2.2			1.6		0.6



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

		Third Quarter
										Constant
										Currency
		2015			2014		Change			Change
APAC
Commercial
Revenue from services	$	83.2		$	91.0		(8.5	)	%	9.2		%
Staffing fee-based income included in revenue from services		1.4			2.0		(28.5	)		(16.7	)
Gross profit		10.7			11.7		(8.5	)		9.1
Gross profit rate		12.8	%		12.8	%	—		pts.
PT
Revenue from services	$	9.9		$	10.6		(6.4	)	%	11.8		%
Staffing fee-based income included in revenue from services		1.3			2.0		(34.3	)		(22.6	)
Gross profit		2.5			3.3		(24.6	)		(10.8	)
Gross profit rate		25.4	%		31.5	%	(6.1	)	pts.
Total APAC
Revenue from services	$	93.1		$	101.6		(8.3	)	%	9.5		%
Staffing fee-based income included in revenue from services		2.7			4.0		(31.4	)		(19.7	)
Gross profit		13.2			15.0		(12.1	)		4.7
SG&A expenses excluding restructuring charges		11.1			14.2		(21.6	)
Restructuring charges		—			0.3		(100.0	)
Total SG&A expenses		11.1			14.5		(23.2	)		(8.8	)
Earnings from operations		2.1			0.5		297.9
Earnings from operations excluding restructuring charges		2.1			0.8		154.9

Gross profit rate		14.2	%		14.8	%	(0.6	)	pts.
Expense rates (excluding restructuring charges):
% of revenue		11.9			14.0		(2.1	)
% of gross profit		84.3			94.6		(10.3	)
Return on sales (excluding restructuring charges)		2.2			0.8		1.4

OCG
Revenue from services	$	171.8		$	149.8		14.7		%	16.8		%
Gross profit		41.4			35.8		15.5			18.4
Total SG&A expenses		33.2			32.2		3.2			6.3
Earnings from operations		8.2			3.6		123.7

Gross profit rate		24.1	%		23.9	%	0.2		pts.
Expense rates:
% of revenue		19.3			21.5		(2.2	)
% of gross profit		80.2			89.8		(9.6	)
Return on sales		4.8			2.4		2.4



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

		September Year to Date
										Constant
										Currency
		2015			2014		Change			Change
AMERICAS
Commercial
Revenue from services	$	1,908.2		$	1,915.1		(0.4	)	%	1.8		%
Staffing fee-based income included in revenue from services		10.8			10.4		3.4			6.0
Gross profit		290.3			280.0		3.7			5.6
Gross profit rate		15.2	%		14.6	%	0.6		pts.
PT
Revenue from services	$	721.8		$	723.1		(0.2	)	%	0.2		%
Staffing fee-based income included in revenue from services		13.1			11.7		11.7			12.6
Gross profit		122.0			118.4		3.1			3.6
Gross profit rate		16.9	%		16.4	%	0.5		pts.
Total Americas
Revenue from services	$	2,630.0		$	2,638.2		(0.3	)	%	1.4		%
Staffing fee-based income included in revenue from services		23.9			22.1		7.7			9.5
Gross profit		412.3			398.4		3.5			5.0
Total SG&A expenses		339.8			332.9		2.0			3.5
Earnings from operations		72.5			65.5		11.0

Gross profit rate		15.7	%		15.1	%	0.6		pts.
Expense rates:
% of revenue		12.9			12.6		0.3
% of gross profit		82.4			83.6		(1.2	)
Return on sales		2.8			2.5		0.3

EMEA
Commercial
Revenue from services	$	573.0		$	690.2		(17.0	)	%	0.3		%
Staffing fee-based income included in revenue from services		9.9			14.0		(29.2	)		(11.0	)
Gross profit		79.1			101.0		(21.7	)		(5.4	)
Gross profit rate		13.8	%		14.6	%	(0.8	)	pts.
PT
Revenue from services	$	126.8		$	145.5		(12.8	)	%	4.7		%
Staffing fee-based income included in revenue from services		7.7			10.7		(27.7	)		(10.2	)
Gross profit		27.2			33.3		(18.1	)		(0.4	)
Gross profit rate		21.5	%		22.8	%	(1.3	)	pts.
Total EMEA
Revenue from services	$	699.8		$	835.7		(16.3	)	%	1.1		%
Staffing fee-based income included in revenue from services		17.6			24.7		(28.5	)		(10.7	)
Gross profit		106.3			134.3		(20.8	)		(4.1	)
SG&A expenses excluding restructuring charges		99.5			124.2		(19.9	)
Restructuring charges		—			0.8		(100.0	)
Total SG&A expenses		99.5			125.0		(20.4	)		(4.7	)
Earnings from operations		6.8			9.3		(25.5	)
Earnings from operations excluding restructuring charges		6.8			10.1		(31.5	)

Gross profit rate		15.2	%		16.1	%	(0.9	)	pts.
Expense rates (excluding restructuring charges):
% of revenue		14.2			14.9		(0.7	)
% of gross profit		93.5			92.5		1.0
Return on sales (excluding restructuring charges)		1.0			1.2		(0.2	)



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

		September Year to Date
										Constant
										Currency
		2015			2014		Change			Change
APAC
Commercial
Revenue from services	$	259.1		$	260.5		(0.5	)	%	13.1		%
Staffing fee-based income included in revenue from services		4.7			5.9		(20.3	)		(10.8	)
Gross profit		34.9			35.7		(2.2	)		10.8
Gross profit rate		13.5	%		13.7	%	(0.2	)	pts.
PT
Revenue from services	$	30.7		$	29.2		5.4		%	20.5		%
Staffing fee-based income included in revenue from services		4.4			5.8		(23.7	)		(14.6	)
Gross profit		8.1			9.4		(13.6	)		(2.4	)
Gross profit rate		26.4	%		32.2	%	(5.8	)	pts.
Total APAC
Revenue from services	$	289.8		$	289.7		0.1		%	13.8		%
Staffing fee-based income included in revenue from services		9.1			11.7		(22.0	)		(12.7	)
Gross profit		43.0			45.1		(4.6	)		8.0
SG&A expenses excluding restructuring charges		35.5			43.3		(18.0	)
Restructuring charges		—			1.3		(100.0	)
Total SG&A expenses		35.5			44.6		(20.5	)		(10.1	)
Earnings from operations		7.5			0.5		NM
Earnings from operations excluding restructuring charges		7.5			1.8		338.5

Gross profit rate		14.8	%		15.6	%	(0.8	)	pts.
Expense rates (excluding restructuring charges):
% of revenue		12.3			15.0		(2.7	)
% of gross profit		82.7			96.2		(13.5	)
Return on sales (excluding restructuring charges)		2.6			0.6		2.0

OCG
Revenue from services	$	486.3		$	422.1		15.2		%	17.0		%
Gross profit		112.6			101.3		11.1			13.4
Total SG&A expenses		98.1			94.7		3.6			6.4
Earnings from operations		14.5			6.6		116.7

Gross profit rate		23.1	%		24.0	%	(0.9	)	pts.
Expense rates:
% of revenue		20.2			22.4		(2.2	)
% of gross profit		87.1			93.4		(6.3	)
Return on sales		3.0			1.6		1.4



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)

		September 27, 2015			December 28, 2014			September 28, 2014
Current Assets
Cash and equivalents	$	44.9		$	83.1		$	51.6
Trade accounts receivable, less allowances of
$9.7, $10.7 and $9.2, respectively		1,160.3			1,122.8			1,158.1
Prepaid expenses and other current assets		49.0			47.9			56.8
Deferred taxes		35.0			34.4			28.9
Total current assets		1,289.2			1,288.2			1,295.4

Property and Equipment, Net		88.3			93.0			91.1

Noncurrent Deferred Taxes		140.8			146.3			132.7

Goodwill, Net		90.3			90.3			90.3

Other Assets		341.3			300.1			291.5

Total Assets	$	1,949.9		$	1,917.9		$	1,901.0

Current Liabilities
Short-term borrowings	$	76.8		$	91.9		$	88.7
Accounts payable and accrued liabilities		385.2			364.0			339.0
Accrued payroll and related taxes		312.8			308.5			318.6
Accrued insurance		25.9			26.9			24.4
Income and other taxes		59.5			68.8			74.0

Total current liabilities		860.2			860.1			844.7

Noncurrent Liabilities
Accrued insurance		42.2			43.9			43.4
Accrued retirement benefits		139.5			140.8			146.6
Other long-term liabilities		48.4			39.4			40.7

Total noncurrent liabilities		230.1			224.1			230.7

Stockholders' Equity
Common stock		40.1			40.1			40.1
Treasury stock		(46.9	)		(49.8	)		(52.5	)
Paid-in capital		26.7			24.9			26.7
Earnings invested in the business		781.3			767.4			752.3
Accumulated other comprehensive income		58.4			51.1			59.0

Total stockholders' equity		859.6			833.7			825.6

Total Liabilities and Stockholders' Equity	$	1,949.9		$	1,917.9		$	1,901.0


STATISTICS:
Working Capital	$	429.0		$	428.1		$	450.7
Current Ratio		1.5			1.5			1.5
Debt-to-capital %		8.2		%	9.9		%	9.7		%
Global Days Sales Outstanding		57			54			58



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars)

		2015			2014
Cash flows from operating activities:
Net earnings	$	19.6		$	6.7
Noncash adjustments:
Depreciation and amortization		16.6			16.2
Provision for bad debts		3.3			3.6
Stock-based compensation		4.6			4.1
Other, net		(0.7	)		1.3
Changes in operating assets and liabilities		(44.9	)		(140.9	)

Net cash used in operating activities		(1.5	)		(109.0	)

Cash flows from investing activities:
Capital expenditures		(12.3	)		(15.0	)
Investment in equity affiliate		(0.5	)		(5.4	)
Other investing activities		(0.4	)		0.2

Net cash used in investing activities		(13.2	)		(20.2	)

Cash flows from financing activities:
Net change in short-term borrowings		(13.8	)		60.4
Dividend payments		(5.7	)		(5.7	)
Other financing activities		0.2			0.4

Net cash (used in) from financing activities		(19.3	)		55.1

Effect of exchange rates on cash and equivalents		(4.2	)		—

Net change in cash and equivalents		(38.2	)		(74.1	)
Cash and equivalents at beginning of period		83.1			125.7


Cash and equivalents at end of period	$	44.9		$	51.6



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

		Third Quarter (Commercial, PT and OCG)
					% Change
								Constant
		2015		2014	US$			Currency

Americas
United States	$	899.8	$	873.7	3.0		%	3.0		%
Canada		37.9		51.9	(27.0	)		(12.6	)
Mexico		31.3		37.0	(15.2	)		6.1
Puerto Rico		23.8		25.7	(7.5	)		(7.5	)
Brazil		10.4		13.6	(23.5	)		11.4
Total Americas		1,003.2		1,001.9	0.1			2.1

EMEA
France		63.1		70.1	(10.0	)		7.4
Switzerland		58.0		66.7	(13.0	)		(8.2	)
Portugal		33.5		33.3	0.8			20.2
United Kingdom		27.7		26.2	5.7			14.0
Russia		17.0		28.7	(40.6	)		2.9
Germany		15.4		17.5	(12.1	)		4.8
Italy		14.0		14.8	(5.5	)		12.6
Norway		10.1		14.8	(31.8	)		(10.5	)
Other		11.5		15.8	(27.1	)		(13.2	)
Total EMEA		250.3		287.9	(13.1	)		3.5

APAC
Singapore		32.6		33.4	(2.3	)		8.5
Australia		28.8		32.3	(10.7	)		13.8
Malaysia		14.0		16.7	(16.1	)		6.0
New Zealand		9.4		12.7	(26.4	)		(4.7	)
Other		12.7		11.5	10.4			20.9
Total APAC		97.5		106.6	(8.5	)		9.5

Total Kelly Services, Inc.	$	1,351.0	$	1,396.4	(3.2	)	%	3.0		%



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

		September Year to Date (Commercial, PT and OCG)
					% Change
								Constant
		2015		2014	US$			Currency

Americas
United States	$	2,706.4	$	2,601.9	4.0		%	4.0		%
Canada		122.2		148.2	(17.5	)		(5.5	)
Mexico		95.2		102.3	(6.9	)		10.4
Puerto Rico		75.2		78.4	(4.0	)		(4.0	)
Brazil		34.2		43.2	(20.8	)		2.8
Total Americas		3,033.2		2,974.0	2.0			3.5

EMEA
France		180.4		202.2	(10.8	)		8.4
Switzerland		160.7		195.7	(17.9	)		(12.9	)
Portugal		98.7		92.4	6.9			29.9
United Kingdom		78.4		82.4	(4.8	)		3.7
Russia		57.4		96.4	(40.4	)		(0.9	)
Germany		43.1		50.7	(15.0	)		3.1
Italy		39.5		46.3	(14.6	)		3.6
Norway		29.5		43.6	(32.5	)		(12.8	)
Other		32.8		50.9	(35.6	)		(21.8	)
Total EMEA		720.5		860.6	(16.3	)		0.9

APAC
Singapore		96.9		94.8	2.3			10.9
Australia		92.1		88.8	3.8			24.8
Malaysia		45.4		50.0	(9.3	)		5.2
New Zealand		30.2		38.2	(21.1	)		(6.1	)
Other		38.3		31.3	22.4			29.7
Total APAC		302.9		303.1	(0.1	)		13.8

Total Kelly Services, Inc.	$	4,056.6	$	4,137.7	(2.0	)	%	3.7		%



KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

		2015							2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Adjusted Earnings	% Change

Revenue from services	$	1,351.0	$	—		$	1,351.0	$	1,396.4	(3.2	)	%

Cost of services		1,122.8		—			1,122.8		1,171.0	(4.1	)

Gross profit		228.2		—			228.2		225.4	1.3

SG&A expenses		211.6		—			211.6		214.3	(1.2	)

Earnings from operations		16.6		—			16.6		11.1	50.7

Other expense, net		—		—			—		2.2	(97.7	)

Earnings before taxes		16.6		—			16.6		8.9	88.3

Inc. tax expense (benefit)		7.5		—			7.5		5.0	48.8

Net earnings	$	9.1	$	—		$	9.1	$	3.9	141.1		%

Earnings per share:
Basic	$	0.23	$	—		$	0.23	$	0.10	130.0		%
Diluted	$	0.23	$	—		$	0.23	$	0.10	130.0		%


		2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services	$	1,396.4	$	—		$	1,396.4

Cost of services		1,171.0		—			1,171.0

Gross profit		225.4		—			225.4

SG&A expenses		218.3		(4.0	)		214.3

Earnings from operations		7.1		4.0			11.1

Other expense, net		2.2		—			2.2

Earnings before taxes		4.9		4.0			8.9

Inc. tax expense (benefit)		3.5		1.5			5.0

Net earnings	$	1.4	$	2.5		$	3.9

Earnings per share:
Basic	$	0.03	$	0.06		$	0.10
Diluted	$	0.03	$	0.06		$	0.10

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.



KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)

		2015							2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Adjusted Earnings	% Change

Revenue from services	$	4,056.6	$	—		$	4,056.6	$	4,137.7	(2.0	)	%

Cost of services		3,385.8		—			3,385.8		3,461.9	(2.2	)

Gross profit		670.8		—			670.8		675.8	(0.7	)

SG&A expenses		630.6		—			630.6		650.7	(3.1	)

Earnings from operations		40.2		—			40.2		25.1	61.6

Other expense, net		3.5		—			3.5		4.2	(14.5	)

Earnings before taxes		36.7		—			36.7		20.9	76.7

Inc. tax expense (benefit)		17.1		—			17.1		10.5	62.4

Net earnings	$	19.6	$	—		$	19.6	$	10.4	91.4		%

Earnings per share:
Basic	$	0.51	$	—		$	0.51	$	0.27	88.9		%
Diluted	$	0.51	$	—		$	0.51	$	0.27	88.9		%


		2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services	$	4,137.7	$	—		$	4,137.7

Cost of services		3,461.9		—			3,461.9

Gross profit		675.8		—			675.8

SG&A expenses		656.5		(5.8	)		650.7

Earnings from operations		19.3		5.8			25.1

Other expense, net		4.2		—			4.2

Earnings before taxes		15.1		5.8			20.9

Inc. tax expense (benefit)		8.4		2.1			10.5

Net earnings	$	6.7	$	3.7		$	10.4

Earnings per share:
Basic	$	0.17	$	0.10		$	0.27
Diluted	$	0.17	$	0.10		$	0.27

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges is useful to understand the Company's fiscal 2015 financial performance and increases comparability. Specifically, Management believes that excluding these items allows for a more meaningful comparison of current period operating performance with the operating results of prior periods. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1) Restructuring charges in 2014 include costs related to the U.S. management simplification restructuring plan, costs incurred for exiting the staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand.

Attached files

KELLY SERVICES INC Reports

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