Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a world
leader in human resources solutions, today announced results for
the fourth quarter and year ended December 28, 2008.
Carl T. Camden, President and Chief Executive Officer, announced
revenue for the fourth quarter of 2008 totaled $1.3 billion, a 13%
decrease compared to the corresponding quarter in 2007. Revenue for
the full year totaled $5.5 billion, a 3% decrease compared to
2007.
Losses from operations for the fourth quarter of 2008 totaled
$83.6 million, compared to earnings from operations of $26.5
million reported for the fourth quarter of 2007. Included in the
results from operations for the fourth quarter 2008 are impairment
charges totaling $80.5 million and $1.5 million of restructuring
costs relating to the Company's UK operations. Earnings from
operations in the fourth quarter 2007 included $1.3 million of
restructuring costs related primarily to our Americas Commercial
operations. Excluding the impairment and restructuring charges, the
loss from operations was $1.6 million for the fourth quarter of
2008, compared to earnings from operations of $27.9 million in the
fourth quarter of 2007.
Losses from operations for the full year of 2008 totaled $70.3
million, compared to earnings from operations of $80.1 million in
2007. The results for the full year 2008 include the $80.5 million
of impairment charges, the $1.5 million of restructuring in the UK
as well as a $22.5 million third quarter charge related to several
litigation matters. Included in earnings from operations for 2007
are $8.9 million of costs related to the restructuring of the
Americas Commercial and UK operations.
Diluted losses per share from continuing operations in the
fourth quarter of 2008 were $2.55, compared to fourth quarter 2007
earnings of $0.52 per share. The impairment charges totaled $2.22
per share and the UK restructuring charges totaled $0.04 per share
in 2008. Fourth quarter 2007 diluted earnings include the $0.02 per
share cost of the Americas Commercial restructuring.
Diluted losses per share from continuing operations for the full
year of 2008 were $2.35, compared to 2007 earnings per share of
$1.47. The impairment charges totaled $2.22, the UK restructuring
charges totaled $0.04 and the litigation charges totaled $0.40 per
diluted share from continuing operations in 2008. The Americas
Commercial and UK restructuring costs totaled $0.21 per share in
2007.
The fourth quarter impairment charges include adjustments to the
value of goodwill for the Company's EMEA Commercial segment, the
Company's investment in Temp Holdings Co. Ltd. (formerly
Tempstaff), a Japanese staffing company, and assets related to
operations in the UK. The UK restructuring charge is part of a plan
to further consolidate and close branches in the UK during
2009.
Commenting on the fourth quarter results, Camden called the
Company's loss disappointing, but not unexpected.
"This year, we've witnessed a widespread economic slowdown as
anxiety over the global financial crisis intensified. With the loss
of 2.6 million jobs in the U.S. alone, it comes as no surprise that
demand for temporary staffing has declined dramatically -- here,
and throughout the world."
Camden emphasized that Kelly is making prudent decisions to
reduce costs and be responsive to the economic times. He added that
the Company continues to execute a strategic plan aimed at building
long-term value for its stakeholders.
"We remain focused on diversifying globally, expanding our
professional and technical staffing, and growing our outsourcing
and consulting services," said Camden.
In conjunction with its fourth quarter earnings release, Kelly
Services, Inc. will host a conference call at 9:00 a.m. (ET) on
January 22, 2009 to review the results and answer questions. The
call may be accessed in one of the following ways:
Via the Telephone:
U.S. 1 888 428-4480
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: 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.
A reconciliation of certain non-GAAP financial measures
discussed in this release is included in the attached financial
information schedules.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a world
leader in human resources solutions headquartered in Troy,
Michigan, offering temporary staffing services, outsourcing, vendor
on-site and full-time placement to clients on a global basis. 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 2008 was
$5.5 billion. Visit www.kellyservices.com.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED DECEMBER 28, 2008 AND DECEMBER 30, 2007
(UNAUDITED)
(In thousands of dollars except per share data)
%
2008 2007 Change Change
----------- ----------- ---------- -------
Revenue from services $ 1,279,091 $ 1,475,759 $ (196,668) (13.3)%
Cost of services 1,054,445 1,210,323 (155,878) (12.9)
----------- ----------- ---------- -------
Gross profit 224,646 265,436 (40,790) (15.4)
Selling, general and
administrative
expenses 227,734 238,895 (11,161) (4.7)
Asset impairments 80,533 - 80,533 N/A
----------- ----------- ---------- -------
(Loss) earnings from
operations (83,621) 26,541 (110,162) (415.1)
Other (expense)
income, net (3,426) 1,021 (4,447) (435.6)
----------- ----------- ---------- -------
(Loss) earnings from
continuing operations
before taxes (87,047) 27,562 (114,609) (415.8)
Income taxes 1,536 9,089 (7,553) (83.1)
----------- ----------- ---------- -------
(Loss) earnings from
continuing operations (88,583) 18,473 (107,056) (579.5)
(Loss) earnings from
discontinued
operations, net of
tax (186) 158 (344) (217.7)
----------- ----------- ---------- -------
Net (loss) earnings $ (88,769) $ 18,631 $ (107,400) (576.5)%
=========== =========== ========== =======
Basic (loss) earnings
per share
(Loss) earnings
from continuing
operations $ (2.55) $ 0.52 $ (3.07) (590.4)%
(Loss) earnings
from discontinued
operations (0.01) - (0.01) N/A
----------- ----------- ---------- -------
Net (loss) earnings $ (2.55) $ 0.52 $ (3.07) (590.4)%
=========== =========== ========== =======
Diluted (loss)
earnings per share
(Loss) earnings
from continuing
operations $ (2.55) $ 0.52 $ (3.07) (590.4)%
(Loss) earnings
from discontinued
operations (0.01) - (0.01) N/A
----------- ----------- ---------- -------
Net (loss) earnings $ (2.55) $ 0.52 $ (3.07) (590.4)%
=========== =========== ========== =======
STATISTICS:
Gross profit rate 17.6 % 18.0% (0.4)pts.
Selling, general and
administrative
expenses:
% of revenue 17.8 16.2 1.6
% of gross profit 101.4 90.0 11.4
% Return - (Loss) earnings
from
operations (6.5) 1.8 (8.3)
(Loss) earnings
from continuing
operations
before taxes (6.8) 1.9 (8.7)
(Loss) earnings
from continuing
operations (6.9) 1.3 (8.2)
Net (Loss)
earnings (6.9) 1.3 (8.2)
Effective income tax
rate (1.8)% 33.0% (34.8)pts.
Average number of
shares outstanding
(thousands):
Basic 34,764 35,759
Diluted 34,764 35,858
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 52 WEEKS ENDED DECEMBER 28, 2008 AND DECEMBER 30, 2007
(In thousands of dollars except per share data)
%
2008 2007 Change Change
----------- ----------- ---------- -------
Revenue from services $ 5,517,290 $ 5,667,589 $ (150,299) (2.7)%
Cost of services 4,539,639 4,678,500 (138,861) (3.0)
----------- ----------- ---------- -------
Gross profit 977,651 989,089 (11,438) (1.2)
Selling, general and
administrative
expenses 967,389 909,009 58,380 6.4
Asset impairments 80,533 - 80,533 N/A
----------- ----------- ---------- -------
(Loss) earnings from
operations (70,271) 80,080 (150,351) (187.8)
Other (expense)
income, net (3,452) 3,211 (6,663) (207.5)
----------- ----------- ---------- -------
(Loss) earnings from
continuing operations
before taxes (73,723) 83,291 (157,014) (188.5)
Income taxes 7,992 29,567 (21,575) (73.0)
----------- ----------- ---------- -------
(Loss) earnings
from continuing
operations (81,715) 53,724 (135,439) (252.1)
(Loss) earnings
from discontinued
operations, net of
tax (524) 7,292 (7,816) (107.2)
----------- ----------- ---------- -------
Net (loss) earnings $ (82,239) $ 61,016 $ (143,255) (234.8)%
=========== =========== ========== =======
Basic (loss) earnings
per share
(Loss) earnings
from continuing
operations $ (2.35) $ 1.48 $ (3.83) (258.8)%
(Loss) earnings
from discontinued
operations (0.02) 0.20 (0.22) (110.0)
----------- ----------- ---------- -------
Net (loss) earnings $ (2.37) $ 1.68 $ (4.05) (241.1)%
=========== =========== ========== =======
Diluted (loss)
earnings per share
(Loss) earnings
from continuing
operations $ (2.35) $ 1.47 $ (3.82) (259.9)%
(Loss) earnings
from discontinued
operations (0.02) 0.20 (0.22) (110.0)
----------- ----------- ---------- -------
Net (loss) earnings $ (2.37) $ 1.67 $ (4.04) (241.9)%
=========== =========== ========== =======
STATISTICS:
Gross profit rate 17.7 % 17.5% 0.2 pts.
Selling, general and
administrative
expenses:
% of revenue 17.5 16.0 1.5
% of gross profit 99.0 91.9 7.1
% Return - (Loss)
earnings from
operations (1.3) 1.4 (2.7)
(Loss) earnings
from continuing
operations
before taxes (1.3) 1.5 (2.8)
(Loss) earnings
from continuing
operations (1.5) 0.9 (2.4)
Net (Loss)
earnings (1.5) 1.1 (2.6)
Effective income tax
rate (10.8)% 35.5% (46.3)pts.
Average number of
shares outstanding
(thousands):
Basic 34,760 36,357
Diluted 34,760 36,495
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
----------------------------------------
Constant
Currency
2008 2007 Change Change
------- ------- ------- --------
Americas Commercial
Revenue from services
(including fee-based
income) $ 591.9 $ 695.8 (14.9)% (12.9)%
Fee-based income 2.7 4.9 (42.2) (37.8)
Earnings from operations 16.3 26.5 (38.8)
Earnings from operations
(excluding restructuring
charges) 16.3 27.9 (42.0)
Gross profit rate 16.3% 16.1% 0.2 pts.
Expense rates:
% of revenue 13.5 12.3 1.2
% of gross profit 83.2 76.4 6.8
Operating margin 2.7 3.8 (1.1)
Americas PT
Revenue from services
(including fee-based
income) $ 212.8 $ 229.5 (7.3)% (7.1)%
Fee-based income 3.6 5.0 (27.5) (27.1)
Earnings from operations 9.5 13.0 (26.6)
Gross profit rate 17.5% 18.1% (0.6)pts.
Expense rates:
% of revenue 13.0 12.5 0.5
% of gross profit 74.4 68.9 5.5
Operating margin 4.5 5.6 (1.1)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 283.2 $ 340.8 (16.9)% (5.0)%
Fee-based income 7.5 10.0 (25.0) (14.7)
Earnings from operations (6.8) 6.1 (210.4)
Earnings from operations
(excluding restructuring
charges) (5.3) 6.0 (187.3)
Gross profit rate 16.8% 18.6% (1.8)pts.
Expense rates:
% of revenue 19.2 16.8 2.4
% of gross profit 114.2 90.4 23.8
Operating margin (2.4) 1.8 (4.2)
EMEA PT
Revenue from services
(including fee-based
income) $ 38.4 $ 43.1 (10.8)% 1.6 %
Fee-based income 5.5 6.4 (14.0) (3.7)
Earnings from operations (0.5) 0.6 (189.0)
Gross profit rate 29.1% 28.9% 0.2 pts.
Expense rates:
% of revenue 30.5 27.6 2.9
% of gross profit 104.7 95.2 9.5
Operating margin (1.4) 1.4 (2.8)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
----------------------------------------
Constant
Currency
2008 2007 Change Change
-------- -------- -------- --------
APAC Commercial
Revenue from services
(including fee-based
income) $ 73.5 $ 89.3 (17.7)% (5.5)%
Fee-based income 3.1 4.0 (23.4) (13.2)
Earnings from operations (1.1) (0.1) (869.7)
Gross profit rate 15.5% 16.8% (1.3)pts.
Expense rates:
% of revenue 16.9 16.9 0.0
% of gross profit 109.3 100.7 8.6
Operating margin (1.4) (0.1) (1.3)
APAC PT
Revenue from services
(including fee-based
income) $ 7.2 $ 8.2 (12.2)% (2.4)%
Fee-based income 0.8 1.3 (44.8) (37.7)
Earnings from operations (0.3) 0.4 (165.1)
Gross profit rate 26.4% 31.9% (5.5)pts.
Expense rates:
% of revenue 29.9 27.2 2.7
% of gross profit 113.1 85.3 27.8
Operating margin (3.5) 4.7 (8.2)
OCG
Revenue from services
(including fee-based
income) $ 72.1 $ 69.0 4.4 % 6.3 %
Fee-based income 7.2 5.0 43.9 50.7
Earnings from operations 0.6 5.0 (86.7)
Gross profit rate 26.6% 26.2% 0.4 pts.
Expense rates:
% of revenue 25.6 19.0 6.6
% of gross profit 96.5 72.4 24.1
Operating margin 0.9 7.2 (6.3)
Corporate Expense $ (20.9) $ (24.9) 15.9 %
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
-------------------------------------------
Constant
Currency
2008 2007 Change Change
--------- --------- --------- --------
Americas Commercial
Revenue from services
(including fee-based
income) $ 2,504.3 $ 2,759.4 (9.2)% (9.3)%
Fee-based income 15.7 18.9 (16.5) (16.7)
Earnings from
operations 70.0 95.6 (26.8)
Earnings from
operations (excluding
restructuring charges) 70.0 98.5 (29.0)
Gross profit rate 15.9% 15.9% 0.0 pts.
Expense rates:
% of revenue 13.1 12.4 0.7
% of gross profit 82.4 78.2 4.2
Operating margin 2.8 3.5 (0.7)
Americas PT
Revenue from services
(including fee-based
income) $ 911.6 $ 929.1 (1.9)% (1.9)%
Fee-based income 19.4 20.6 (5.8) (6.0)
Earnings from
operations 47.7 53.5 (10.8)
Gross profit rate 17.6% 17.8% (0.2)pts.
Expense rates:
% of revenue 12.4 12.0 0.4
% of gross profit 70.3 67.6 2.7
Operating margin 5.2 5.8 (0.6)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 1,310.4 $ 1,292.4 1.4 % (1.6)%
Fee-based income 39.5 38.2 3.5 0.0
Earnings from
operations (3.0) 8.9 (133.5)
Earnings from
operations (excluding
restructuring charges) (1.5) 14.8 (109.9)
Gross profit rate 17.4% 17.7% (0.3)pts.
Expense rates:
% of revenue 17.6 17.0 0.6
% of gross profit 101.3 96.1 5.2
Operating margin (0.2) 0.7 (0.9)
EMEA PT
Revenue from services
(including fee-based
income) $ 172.5 $ 158.8 8.7 % 4.6 %
Fee-based income 26.8 21.9 22.4 15.8
Earnings from
operations 2.3 2.4 (5.7)
Gross profit rate 29.7% 28.2% 1.5 pts.
Expense rates:
% of revenue 28.3 26.7 1.6
% of gross profit 95.5 94.6 0.9
Operating margin 1.3 1.5 (0.2)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
December Year to Date
----------------------------------------
Constant
Currency
2008 2007 Change Change
--------- -------- ------ --------
APAC Commercial
Revenue from services
(including fee-based
income) $ 336.0 $ 310.6 8.2 % 5.2 %
Fee-based income 17.0 15.0 13.2 9.1
Earnings from operations (0.3) 3.2 (109.1)
Gross profit rate 16.8% 17.1% (0.3)pts.
Expense rates:
% of revenue 16.8 16.0 0.8
% of gross profit 100.5 93.9 6.6
Operating margin (0.1) 1.0 (1.1)
APAC PT
Revenue from services
(including fee-based
income) $ 34.3 $ 26.7 28.3 % 22.4 %
Fee-based income 5.1 5.0 1.0 (4.3)
Earnings from operations (0.5) 0.1 (491.6)
Gross profit rate 29.8% 33.0% (3.2)pts.
Expense rates:
% of revenue 31.2 32.6 (1.4)
% of gross profit 104.6 98.6 6.0
Operating margin (1.4) 0.4 (1.8)
OCG
Revenue from services
(including fee-based
income) $ 248.2 $ 190.6 30.2 % 29.3 %
Fee-based income 27.8 16.7 66.6 65.1
Earnings from operations 3.4 8.0 (57.2)
Gross profit rate 29.7% 26.4% 3.3 pts.
Expense rates:
% of revenue 28.3 22.2 6.1
% of gross profit 95.3 84.0 11.3
Operating margin 1.4 4.2 (2.8)
Corporate Expense $ (109.4) $ (91.7) (19.3)%
KELLY SERVICES, INC. AND SUBSIDIARIES
SUMMARY OF DISCONTINUED OPERATIONS
(UNAUDITED)
(In thousands of dollars)
Fourth Quarter December Year to Date
---------------- ---------------------
2008 2007 2008 2007
------- ------- --------- ----------
Revenue from services $ - $ - $ - $ 14,777
Operating (loss) income from
discontinued operations $ (302) $ (119) $ (849) $ 1,454
Less: Income taxes (116) (277) (325) 328
------- ------- --------- ----------
(Loss) earnings from discontinued
operations, net of tax (186) 158 (524) 1,126
------- ------- --------- ----------
Gain on sale of discontinued
operations - - - 10,153
Less: Income taxes - - - 3,987
------- ------- --------- ----------
Gain on sale of discontinued
operations, net of tax - - - 6,166
------- ------- --------- ----------
Discontinued operations, net of tax $ (186) $ 158 $ (524) $ 7,292
======= ======= ========= ==========
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 fourth
quarter of 2008 and 2007 and December year to date 2008 and 2007, as well
as 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
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
December 28, December 30,
2008 2007
------------ ------------
Current Assets
Cash and equivalents $ 118,277 $ 92,817
Trade accounts receivable, less allowances
of $17,003 and $18,172, respectively 815,789 888,334
Prepaid expenses and other current assets 61,959 53,392
Deferred taxes 31,929 29,294
------------ ------------
Total current assets 1,027,954 1,063,837
Property and Equipment, Net 151,292 178,019
Noncurrent Deferred Taxes 40,020 43,436
Goodwill, Net 117,824 147,168
Other Assets 120,165 141,537
------------ ------------
Total Assets $ 1,457,255 $ 1,573,997
============ ============
Current Liabilities
Short-term borrowings $ 35,197 $ 49,729
Accounts payable and accrued liabilities 244,119 171,471
Accrued payroll and related taxes 243,160 270,575
Accrued insurance 26,312 23,696
Income and other taxes 51,809 69,779
------------ ------------
Total current liabilities 600,597 585,250
Noncurrent Liabilities
Long-term debt 80,040 48,394
Accrued insurance 46,901 60,404
Accrued retirement benefits 61,576 78,382
Other long-term liabilities 15,234 13,338
------------ ------------
Total noncurrent liabilities 203,751 200,518
Stockholders' Equity
Common stock 40,116 40,116
Treasury stock (111,229) (106,312)
Paid-in capital 35,788 34,500
Earnings invested in the business 676,047 777,338
Accumulated other comprehensive income 12,185 42,587
------------ ------------
Total stockholders' equity 652,907 788,229
------------ ------------
Total Liabilities and Stockholders' Equity $ 1,457,255 $ 1,573,997
============ ============
STATISTICS:
Working Capital $ 427,357 $ 478,587
Current Ratio 1.7 1.8
Debt-to-capital % 15.0% 11.1%
Global Days Sales Outstanding 50 49
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED DECEMBER 28, 2008 AND DECEMBER 30, 2007
(In thousands of dollars)
2008 2007
--------- ---------
Cash flows from operating activities
Net (loss) earnings $ (82,239) $ 61,016
Noncash adjustments:
Depreciation and amortization 45,958 42,601
Impairment of assets 80,533 -
Provision for bad debts 6,712 6,654
Stock-based compensation 4,440 3,941
Gain on sale of discontinued operations - (6,166)
Other, net 3,721 (573)
Changes in operating assets and liabilities 42,472 (34,129)
--------- ---------
Net cash from operating activities 101,597 73,344
--------- ---------
Cash flows from investing activities
Capital expenditures (31,136) (45,975)
Acquisition of companies, net of cash received (32,712) (48,417)
Proceeds from sale of discontinued operations - 12,500
Other investing activities (236) (532)
--------- ---------
Net cash from investing activities (64,084) (82,424)
--------- ---------
Cash flows from financing activities
Net change in revolving line of credit (34,174) 17,500
Proceeds from debt 42,450 57,277
Repayment of debt - (49,054)
Dividend payments (19,052) (19,114)
Purchase of treasury stock (7,975) (34,703)
Stock options and other stock sales 111 5,781
Other financing activities 9,874 (165)
--------- ---------
Net cash from financing activities (8,766) (22,478)
--------- ---------
Effect of exchange rates on cash and equivalents (3,287) 5,947
--------- ---------
Net change in cash and equivalents 25,460 (25,611)
Cash and equivalents at beginning of period 92,817 118,428
--------- ---------
Cash and equivalents at end of period $ 118,277 $ 92,817
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
Fourth Quarter (Commercial, PT and OCG)
---------------------------------------------
% Change
Constant
2008 2007 US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 781,496 $ 881,640 (11.4)% (11.4)%
Canada 50,225 69,041 (27.3) (10.8)
Puerto Rico 18,606 19,431 (4.2) (4.2)
Mexico 18,060 18,557 (2.7) 15.8
----------- -----------
Total Americas 868,387 988,669 (12.2) (10.7)
EMEA
United Kingdom 80,659 114,113 (29.3) (9.0)
France 75,121 87,084 (13.7) (5.4)
Switzerland 41,467 50,199 (17.4) (16.6)
Italy 25,209 31,893 (21.0) (13.1)
Russia 22,309 19,652 13.5 25.0
Germany 17,642 20,091 (12.2) (3.5)
Norway 16,995 21,527 (21.1) (2.4)
Portugal 15,604 - N/A N/A
Other 32,693 42,402 (22.9) (14.1)
----------- -----------
Total EMEA 327,699 386,961 (15.3) (3.3)
APAC
Australia 25,966 39,779 (34.7) (14.1)
Singapore 16,124 18,373 (12.2) (10.3)
Other 40,915 41,977 (2.5) 5.8
----------- -----------
Total APAC 83,005 100,129 (17.1) (5.0)
Total Kelly Services, Inc. $ 1,279,091 $ 1,475,759 (13.3)% (8.3)%
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
December Year to Date (Commercial, PT and OCG)
---------------------------------------------
% Change
Constant
2008 2007 US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 3,237,137 $ 3,454,922 (6.3)% (6.3)%
Canada 237,809 260,050 (8.6) (9.7)
Puerto Rico 77,406 76,772 0.8 0.8
Mexico 76,179 73,406 3.8 5.2
----------- -----------
Total Americas 3,628,531 3,865,150 (6.1) (6.2)
EMEA
United Kingdom 397,987 469,903 (15.3) (9.0)
France 350,848 315,008 11.4 3.4
Switzerland 184,930 180,951 2.2 (8.1)
Italy 131,863 124,674 5.8 (2.2)
Russia 90,893 68,528 32.6 29.0
Norway 86,138 78,050 10.4 4.6
Germany 82,951 65,593 26.5 17.5
Portugal 27,469 - N/A N/A
Other 154,427 153,209 0.8 (6.0)
----------- -----------
Total EMEA 1,507,506 1,455,916 3.5 0.3
APAC
Australia 133,599 135,886 (1.7) (3.7)
Singapore 71,285 62,447 14.2 7.0
Other 176,369 148,190 19.0 16.5
----------- -----------
Total APAC 381,253 346,523 10.0 6.9
Total Kelly Services, Inc. $ 5,517,290 $ 5,667,589 (2.7)% (3.7)%
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
Fourth Quarter
------------------------------------------
2008 2007
-------------------- --------------------
Amount Per Share Amount Per Share
--------- --------- --------- ----------
(Loss) earnings from
continuing operations $ (88,583) $ (2.55) $ 18,473 $ 0.52
Restructuring charges,
net of taxes (Notes 1
and 2) 1,500 0.04 802 0.02
Asset impairments,
net of taxes (Note 3) 77,172 2.22 - -
--------- --------- --------- ----------
(Loss) earnings from
continuing operations
excluding restructuring and
asset impairment charges,
net of taxes $ (9,911) $ (0.29) $ 19,275 $ 0.54
========= ========= ========= ==========
Fourth Quarter
------------------------------------------
2008 2007 % Change
--------- --------- ----------
Selling, general and
administrative expenses $ 227,734 $ 238,895
Restructuring charges
(Notes 1 and 2) (1,500) (1,343)
--------- ---------
Selling, general and
administrative expenses
excluding restructuring
charges $ 226,234 $ 237,552 (4.8%)
========= ========= ==========
(Loss) earnings from
operations $ (83,621) $ 26,541
Restructuring charges
(Notes 1 and 2) 1,500 1,343
Asset impairments (Note
3) 80,533 -
--------- ---------
(Loss) earnings from
operations excluding
restructuring and asset
impairment charges $ (1,588) $ 27,884 (105.7%)
========= ========= ==========
Americas Commercial selling,
general and administrative
expenses $ 80,014 $ 85,696
Americas restructuring
charge (Note 1) - (1,442)
--------- ---------
Americas Commercial selling,
general and administrative
expenses excluding the
Americas restructuring
charge $ 80,014 $ 84,254 (5.0%)
========= ========= ==========
Americas Commercial earnings
from operations $ 16,207 $ 26,485
Americas restructuring
charge (Note 1) - 1,442
--------- ---------
Americas Commercial earnings
from operations excluding
the Americas restructuring
charge $ 16,207 $ 27,927 (42.0%)
========= ========= ==========
EMEA Commercial selling,
general and administrative
expenses $ 54,376 $ 57,377
U.K. restructuring
charge (Note 2) (1,500) 99
--------- ---------
EMEA Commercial selling,
general and administrative
expenses excluding the U.K.
restructuring charge $ 52,876 $ 57,476 (8.0%)
========= ========= ==========
EMEA Commercial (loss)
earnings from operations $ (6,741) $ 6,105
U.K. restructuring
charge (Note 2) 1,500 (99)
--------- ---------
EMEA Commercial (loss)
earnings from operations
excluding the U.K.
restructuring charge $ (5,241) $ 6,006 (187.3%)
========= ========= ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
December Year to Date
------------------------------------------
2008 2007
-------------------- --------------------
Amount Per Share Amount Per Share
--------- --------- --------- ---------
(Loss) earnings from
continuing operations $ (81,715) $ (2.35) $ 53,724 $ 1.47
Restructuring charges,
net of taxes (Notes 1
and 2) 1,500 0.04 7,766 0.21
Asset impairments,
net of taxes (Note 3) 77,172 2.22 - -
--------- --------- --------- ---------
(Loss) earnings from
continuing operations
excluding restructuring and
asset impairment charges,
net of taxes $ (3,043) $ (0.09) $ 61,490 $ 1.68
========= ========= ========= =========
December Year to Date
------------------------------------------
2008 2007 % Change
--------- --------- ---------
Selling, general and
administrative expenses $ 967,389 $ 909,009
Restructuring charges
(Notes 1 and 2) (1,500) (8,889)
--------- ---------
Selling, general and
administrative expenses
excluding restructuring
charges $ 965,889 $ 900,120 7.3%
========= ========= =========
(Loss) earnings from
operations $ (70,271) $ 80,080
Restructuring charges
(Notes 1 and 2) 1,500 8,889
Asset impairments (Note
3) 80,533 -
--------- ---------
Earnings from operations
excluding restructuring and
asset impairment charges $ 11,762 $ 88,969 (86.8%)
========= ========= =========
Americas Commercial selling,
general and administrative
expenses $ 328,435 $ 342,197
Americas restructuring
charge (Note 1) - (2,953)
--------- ---------
Americas Commercial selling,
general and administrative
expenses excluding the
Americas restructuring
charge $ 328,435 $ 339,244 (3.2%)
========= ========= =========
Americas Commercial earnings
from operations $ 69,956 $ 95,566
Americas restructuring
charge (Note 1) - 2,953
--------- ---------
Americas Commercial earnings
from operations excluding
the Americas restructuring
charge $ 69,956 $ 98,519 (29.0%)
========= ========= =========
EMEA Commercial selling,
general and administrative
expenses $ 230,364 $ 220,135
U.K. restructuring
charge (Note 2) (1,500) (5,936)
--------- ---------
EMEA Commercial selling,
general and administrative
expenses excluding the U.K.
restructuring charge $ 228,864 $ 214,199 6.8%
========= ========= =========
EMEA Commercial (loss)
earnings from operations $ (2,971) $ 8,871
U.K. restructuring
charge (Note 2) 1,500 5,936
--------- ---------
EMEA Commercial (loss)
earnings from operations
excluding the U.K.
restructuring charge $ (1,471) $ 14,807 (109.9%)
========= ========= =========
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 impairment and restructuring charges
is useful to understand the Company's fiscal 2008 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) The Americas restructuring charge is comprised of facility exit costs
associated with the closure of 42 branch locations and the accelerated
depreciation of the leasehold improvements and personal property at the
impacted locations.
(2) The 2007 UK restructuring charge is comprised of facility exit costs
associated with the closure of 22 branch locations and the accelerated
depreciation of the leasehold improvements and personal property at the
impacted locations. The 2008 U.K. restructuring charge represents severance
costs related to 2009 planned branch consolidations and closures.
(3) The 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.
ANALYST CONTACT: James Polehna (248) 244-4586
james_polehna@kellyservices.com MEDIA CONTACT: Judith Clark (248)
244-5362 judith_clark@kellyservices.com
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
