TROY, Mich., April 24 /PRNewswire-FirstCall/ -- Kelly Services,
Inc. (NASDAQ:KELYANASDAQ:KELYB), a global provider of staffing
services, today announced results for the first quarter ended April
1, 2007. (Logo:
http://www.newscom.com/cgi-bin/prnh/19991208/KELLYLOGO ) Carl T.
Camden, President and Chief Executive Officer, announced revenue
for the first quarter of 2007 totaled $1.351 billion, a 1.1%
increase compared to the $1.336 billion for the corresponding
quarter in 2006. On a constant currency basis revenue decreased
1.1%. Net earnings for the first quarter of 2007 totaled $11.9
million, a 39.2% increase compared to $8.6 million reported for the
first quarter of 2006. Effective March 31, 2007, the Company sold
its Home Care business unit for cash proceeds of $12.5 million and
recorded an after tax gain on sale of $6.2 million. During the
first quarter the Company also incurred after tax costs of $2.6
million related to the restructuring of its UK operations.
Excluding the gain on sale of the Home Care business and the UK
restructuring charges, net earnings were $8.4 million, a 2.0%
decrease compared to last year. Diluted earnings per share in the
first quarter of 2007 were $0.32, an increase of 33.3% as compared
to first quarter 2006 earnings of $0.24 per share. Excluding the
$0.17 per share after tax gain on sale of the Home Care business,
and the $0.07 per share after tax cost of the UK restructuring,
diluted earnings were $0.23 per share, a 4.2% decrease compared to
last year. Commenting on the results, Camden said, "Despite
continued slowing in the Americas staffing markets, we're pleased
that we delivered solid profitable results. We also accomplished a
number of key strategic objectives during the first quarter. We
moved aggressively to diversify geographically and move into higher
margin fee based businesses. -- We acquired Talents Technology, a
permanent placement and executive search firm with operations in
the Czech Republic and Poland. -- In support of our expansion into
the Asia-Pacific markets, we acquired the remaining 51% interest in
our Tempstaff - Kelly joint venture. Kelly now owns 100% of this
$40 million annual revenue operation in Japan. -- We also acquired
CGR/seven, a creative services staffing and placement firm with
operations in New York. This acquisition adds a new higher margin
business to our professional staffing portfolio. "Although these
acquisitions did not have any significant financial impact on the
first quarter, they position us well for enhanced growth and
profitability going forward. "Effective with the first quarter, we
have realigned our operations into four reporting segments:
Americas Commercial, Americas Professional, Technical and Staffing
Alternatives (PTSA), International Commercial, and International
PTSA. The Americas include our U.S. operations, as well as Canada,
Mexico and Puerto Rico, which were previously included in
International. In addition, we have allocated corporate expenses
that directly support the operating units to the results of the
four segments. This change provides greater transparency in our
financial reporting and allows more accountability by our segment
leadership for total business performance. Reclassified historical
financial statements reflecting these changes are available on the
Company's investor relations web site. "Revenue in our Americas
Commercial segment, which accounted for 51% of total sales,
decreased 4.3% year over year in the first quarter. Operating
earnings totaled $21.1 million, essentially flat to last year.
"Revenue in our Americas PTSA segment, which accounted for 19% of
total sales, decreased 6.2% year over year in the first quarter.
Operating earnings totaled $13.6 million and decreased 6.5% on a
year over year basis. "Revenue in our International Commercial
segment, which accounted for 27% of total sales, increased 16.3%
year over year in the first quarter. On a constant currency basis
revenue increased 7.3%. The reported segment operating loss totaled
$4.5 million. Excluding the $2.6 million of UK restructuring
charges, the operating loss was $1.9 million, a 20.5% improvement
compared to the prior year. "Revenue in our International PTSA
segment, which accounted for 3% of total sales, increased 40.0%
year over year in the first quarter. On a constant currency basis
revenue increased 29.4%. Operating earnings totaled $248 thousand,
a 37.8% increase compared to last year. "Corporate expenses totaled
$19.9 million and decreased 3.9% compared to last year. "Earnings
from operations totaled $10.5 million. Excluding the $2.6 million
of UK restructuring charges, earnings from operations totaled $13.1
million and increased 2.6% on a year over year basis. "The
effective tax rate from continuing operations for the first quarter
was 52.9%, compared to 36.3% last year. The increase in the
effective tax rate is primarily due to the impact of the UK
restructuring charges, where the tax benefit is not recognized
because of valuation allowances recorded against existing UK tax
loss carry forwards. Mr. Camden added, "We expect second quarter
2007 earnings to be in the range of $0.35 to $0.40 per share, as
compared to $0.33 per share from continuing operations in the
second quarter of 2006. Not included in this guidance are
additional planned restructuring costs of approximately $3 million,
or $0.08 per share related primarily to the completion of the
branch closings and headquarters consolidation in our UK
operation." Mr. Camden concluded, "For the full year of 2007, we
are currently forecasting that earnings will range between $1.65
and $1.80 per share, compared to $1.56 per share from continuing
operations in 2006. The range excludes the gain on the sale of the
Home Care business and UK restructuring costs. This guidance
reflects our view that the U.S. economy will avoid a recession in
2007, and that our Americas staffing segments will resume positive
revenue growth in the 3rd quarter of this year. " In conjunction
with its first quarter earnings release, Kelly Services, Inc. will
host a conference call at 9:00 a.m. (ET) on April 24, 2007 to
review the results and answer questions. The call may be accessed
in one of the following ways: Via the Telephone: U.S.
1-800-288-8961 International 1-612-332-0632 The pass code is Kelly
Services Via the Internet: The call is also available via the
internet through the Kelly Services website:
http://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 projections contained herein. Kelly Services,
Inc. (NASDAQ:KELYANASDAQ:KELYB) is a Fortune 500 company
headquartered in Troy, Mich., offering staffing solutions that
include temporary staffing services, outsourcing, vendor on-site
and full-time placement. Kelly operates in 32 countries and
territories. Kelly provides employment to more than 750,000
employees annually, with skills including office services,
accounting, engineering, information technology, law, science,
marketing, creative services, light industrial, education, and
health care. Revenue in 2006 was $5.6 billion. Visit
http://www.kellyservices.com/. KELLY SERVICES, INC. AND
SUBSIDIARIES STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED APRIL 1,
2007 AND APRIL 2, 2006 (UNAUDITED) (In thousands of dollars except
per share data) 2007 2006 Change % Change Revenue from services
$1,350,858 $1,335,605 $15,253 1.1% Cost of services 1,121,650
1,122,569 (919) (0.1) Gross profit 229,208 213,036 16,172 7.6
Selling, general and administrative expenses 218,715 200,240 18,475
9.2 Earnings from operations 10,493 12,796 (2,303) (18.0) Other
income, net 673 40 633 NM Earnings from continuing operations
before taxes 11,166 12,836 (1,670) (13.0) Income taxes 5,908 4,664
1,244 26.7 Earnings from continuing operations 5,258 8,172 (2,914)
(35.7) Earnings from discontinued operations, net of tax 6,657 386
6,271 NM Net earnings $11,915 $8,558 $3,357 39.2% Basic earnings
per share Earnings from continuing operations $0.14 $0.23 $(0.09)
(39.1)% Earnings from discontinued operations 0.18 0.01 0.17 NM Net
earnings $0.33 $0.24 $0.09 37.5% Diluted earnings per share
Earnings from continuing operations $0.14 $0.23 $(0.09) (39.1)%
Earnings from discontinued operations 0.18 0.01 0.17 NM Net
earnings $0.32 $0.24 $0.08 33.3% STATISTICS: Gross profit rate
17.0% 16.0% 1.0% Expenses as a % of revenue 16.2 15.0 1.2 % Return
- Earnings from operations 0.8 1.0 (0.2) Earnings from continuing
operations before taxes 0.8 1.0 (0.2) Earnings from continuing
operations 0.4 0.6 (0.2) Net earnings 0.9 0.6 0.3 Effective income
tax rate 52.9% 36.3% 16.6% Average number of shares outstanding
(thousands): Basic 36,511 35,872 Diluted 36,898 36,076 KELLY
SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED) (In thousands of dollars) First Quarter 2007 2006
Change % Change Revenue from Services: Americas - Commercial
$684,051 $714,465 $(30,414) (4.3)% Americas - PTSA 263,433 280,736
(17,303) (6.2) Total Americas 947,484 995,201 (47,717) (4.8)
International - Commercial 358,950 308,679 50,271 16.3
International - PTSA 44,424 31,725 12,699 40.0 Total International
403,374 340,404 62,970 18.5 $1,350,858 $1,335,605 $15,253 1.1%
Earnings from Operations (As Reported): Americas - Commercial
$21,059 $21,133 $(74) (0.4)% Americas - PTSA 13,615 14,562 (947)
(6.5) Total Americas 34,674 35,695 (1,021) (2.9) International -
Commercial (4,493) (2,339) (2,154) (92.1) International - PTSA 248
180 68 37.8 Total International (4,245) (2,159) (2,086) (96.6)
Corporate Expense (19,936) (20,740) 804 3.9 $10,493 $12,796
$(2,303) (18.0)% Earnings from Operations (Excluding the UK
Restructuring Charge): Americas - Commercial $21,059 $21,133 $(74)
(0.4)% Americas - PTSA 13,615 14,562 (947) (6.5) Total Americas
34,674 35,695 (1,021) (2.9) International - Commercial (1,859)
(2,339) 480 20.5 International - PTSA 248 180 68 37.8 Total
International (1,611) (2,159) 548 25.4 Corporate Expense (19,936)
(20,740) 804 3.9 $13,127 $12,796 $331 2.6% KELLY SERVICES, INC. AND
SUBSIDIARIES RECONCILIATION OF CONSTANT CURRENCY REVENUE FROM
SERVICES TO REPORTED REVENUE FROM SERVICES (UNAUDITED) (In
thousands of dollars) First Quarter 2007 2006 Change % Change
Revenue from services - constant currency*: Americas - Commercial
$685,513 $714,465 $(28,952) (4.1)% Americas - PTSA 263,531 280,736
(17,205) (6.1) Total Americas - constant currency* 949,044 995,201
(46,157) (4.6) International - Commercial 331,164 308,679 22,485
7.3 International - PTSA 41,061 31,725 9,336 29.4 Total
International - constant currency* 372,225 340,404 31,821 9.3 Total
revenue from services - constant currency* 1,321,269 1,335,605
(14,336) (1.1)% Foreign currency impact 29,589 29,589 Revenue from
services $1,350,858 $1,335,605 $15,253 1.1 % * Information on
constant currencies is provided to allow investors to separate the
impact of foreign currency translations on reported results.
Constant currency results are calculated by translating the current
year results at prior year average exchange rates. KELLY SERVICES,
INC. AND SUBSIDIARIES SUMMARY OF DISCONTINUED OPERATIONS
(UNAUDITED) (In thousands of dollars) First Quarter 2007 2006
Revenue from services: KHC $14,777 $14,720 KSL - 9,764 Operating
income (loss) from discontinued operations: KHC $674 $(42) KSL 124
683 798 641 Less: Income taxes 307 255 Earnings from discontinued
operations, net of tax 491 386 Gain on sale of KHC discontinued
operations 10,153 - Less: Income taxes 3,987 - Gain on sale of KHC
discontinued operations, net of tax 6,166 - Discontinued
operations, net of tax $6,657 $386 Effective March 31, 2007, the
Company sold Kelly Home Care ("KHC"), a wholly owned subsidiary.
Effective December 31, 2006, the Company sold Kelly Staff Leasing
("KSL"), a wholly owned subsidiary. The operating results for KHC
and KSL, as well as the gain on the sale of KHC, have been excluded
from earnings from continuing operations. This schedule provides
information on KHC's and KSL's results from operations for the
first quarter of 2007 and 2006 and the gain on the sale of KHC, all
of which are included as discontinued operations on the face of the
statements of earnings. KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (In thousands of
dollars except per share data) First Quarter 2007 2006 Amount Per
Share Amount Per Share Net earnings $11,915 $0.32 $8,558 $0.24 Gain
on the sale of Kelly Home Care (6,166) (0.17) - - UK restructuring
charge (1) 2,634 0.07 - - Net earnings excluding the gain on sale
and UK restructuring charge $8,383 $0.23 $8,558 $0.24 First Quarter
2007 2006 % change Selling, general and administrative expenses
$218,715 $200,240 UK restructuring charge (1) (2,634) - Selling,
general and administrative expenses excluding the UK restructuring
charge $216,081 $200,240 7.9% Earnings from operations $10,493
$12,796 UK restructuring charge (1) 2,634 - Earnings from
operations excluding the UK restructuring charge $13,127 $12,796
2.6% Earnings from continuing operations $5,258 $8,172 UK
restructuring charge (1) 2,634 - Earnings from continuing
operations excluding the UK restructuring charge $7,892 $8,172
(3.4%) International Commercial Earnings from operations $(4,493)
$(2,339) UK restructuring charge (1) 2,634 - International
Commercial Earnings excluding the UK restructuring charge $(1,859)
$(2,339) 20.5% International Earnings from operations $(4,245)
$(2,159) UK restructuring charge (1) 2,634 - International
Commercial Earnings excluding the UK restructuring charge $(1,611)
$(2,159) 25.4% KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP MEASURES (UNAUDITED) (In thousands of dollars except
per share data) Management believes that the non-GAAP (Generally
Accepted Accounting Principles) information excluding the gain on
the sale of Kelly Home Care and the UK restructuring charge is
useful to understand the Company's fiscal 2007 financial
performance and increases comparability with prior year results.
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) The UK restructuring charge
is comprised of facility exit costs associated with the closure of
18 branch locations and the accelerated depreciation of the
leasehold improvements and personal property at the impacted
locations. KELLY SERVICES, INC. AND SUBSIDIARIES BALANCE SHEETS
(UNAUDITED) (In thousands of dollars) April 1, December 31, April
2, 2007 2006 2006 Current Assets Cash and equivalents $120,829
$118,428 $60,395 Trade accounts receivable, less allowances of
$17,884, $16,818 and $17,114, respectively 828,005 838,246 819,995
Prepaid expenses and other current assets 49,569 45,316 43,792
Deferred taxes 25,678 29,543 33,586 Total current assets 1,024,081
1,031,533 957,768 Property and Equipment, Net 168,230 170,288
161,569 Noncurrent Deferred Taxes 35,731 35,437 22,442 Goodwill,
Net 121,207 96,504 89,324 Other Assets 135,570 135,662 106,173
Total Assets $1,484,819 $1,469,424 $1,337,276 Current Liabilities
Short-term borrowings $75,594 $68,928 $51,298 Accounts payable
135,382 132,819 114,236 Accrued payroll and related taxes 266,039
274,284 270,985 Accrued insurance 24,203 24,191 32,798 Income and
other taxes 56,580 68,055 52,279 Total current liabilities 557,798
568,277 521,596 Noncurrent Liabilities Accrued insurance 57,219
57,277 52,465 Accrued retirement benefits 74,519 71,990 61,522
Other long-term liabilities 21,293 13,323 13,273 Total noncurrent
liabilities 153,031 142,590 127,260 Stockholders' Equity Common
stock 40,116 40,116 40,116 Treasury stock (74,231) (78,841)
(88,999) Paid-in capital 33,205 32,048 27,651 Earnings invested in
the business 742,718 735,104 692,961 Accumulated other
comprehensive income 32,182 30,130 16,691 Total stockholders'
equity 773,990 758,557 688,420 Total Liabilities and Stockholders'
Equity $1,484,819 $1,469,424 $1,337,276 STATISTICS: Working Capital
$466,283 $463,256 $436,172 Current Ratio 1.8 1.8 1.8
Debt-to-capital % 8.9% 8.3% 6.9% Global Days Sales Outstanding
Year-to-date 56 55 56 KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS FOR THE 13 WEEKS ENDED APRIL 1, 2007 AND
APRIL 2, 2006 (In thousands of dollars) 2007 2006 Cash flows from
operating activities Net earnings $11,915 $8,558 Noncash
adjustments: Depreciation and amortization 10,551 10,329 Provision
for bad debts 1,961 1,116 Stock-based compensation 918 1,297 Gain
on sale of discontinued operations (6,166) - Other, net (262) (35)
Changes in other operating assets and liabilities (4,884) (10,270)
Net cash from operating activities 14,033 10,995 Cash flows from
investing activities Capital expenditures (8,544) (5,950) Proceeds
from sale of discontinued operations 12,500 - Acquisition of
companies, net of cash received (16,869) - Other investing
activities 13 (392) Net cash from investing activities (12,900)
(6,342) Cash flows from financing activities Net decrease in
revolving line of credit (1,857) (5,891) Proceeds from short-term
debt 8,223 - Dividend payments (4,633) (3,630) Stock options and
other stock sales 4,895 1,330 Other financing activities (6,565)
393 Net cash from financing activities 63 (7,798) Effect of
exchange rates on cash and equivalents 1,205 (159) Net change in
cash and equivalents 2,401 (3,304) Cash and equivalents at
beginning of period 118,428 63,699 Cash and equivalents at end of
period $120,829 $60,395
http://www.newscom.com/cgi-bin/prnh/19991208/KELLYLOGO DATASOURCE:
Kelly Services, Inc. CONTACT: ANALYST CONTACT: James Polehna,
+1-248-244-4586, , or MEDIA CONTACT: Renee Walker, +1-248-244-5362,
, both of Kelly Services, Inc. Web site:
http://www.kellyservices.com/
Copyright
Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Lug 2023 a Lug 2024