Kelly Services Reports Record Revenue and Strong Earnings Growth
for the 3rd Quarter of 2004 Revenue increased 13.5% and net
earnings increased nearly five fold TROY, Mich., Oct. 19
/PRNewswire-FirstCall/ -- Kelly Services, Inc., a global provider
of staffing services, today announced record revenue and strong
earnings growth for the third quarter ended September 26, 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991208/KELLYLOGO )
Terence E. Adderley, Kelly Services chairman and chief executive
officer, announced revenue for the third quarter of 2004 totaled
$1.245 billion, a 13.5% increase compared to the $1.097 billion for
the corresponding quarter in 2003. Sales for the nine-month period
totaled $3.628 billion, a 14.8% increase compared to the $3.160
billion for the first nine months of 2003. Net earnings for the
third quarter of 2004 totaled $7.4 million, compared to $1.5
million reported for the third quarter of 2003. Net earnings for
the first nine months of 2004 totaled $13.5 million, compared to
the $3.3 million earned during the comparable nine-month period in
2003. Diluted earnings per share in the third quarter of 2004 were
$0.21, as compared to third quarter 2003 earnings of $0.04 per
share. Diluted earnings per share for the first nine months of 2004
were $0.38, compared to the $0.09 per share earned in the first
nine months of 2003. Commenting on the results, Adderley said, "The
economic recovery is well underway, and our third quarter sales of
$1.245 billion set a new all time record for any quarter. "We're
pleased with our progress so far this year. We believe the balance
of the year will continue on course, and our fourth quarter 2004
earnings per share should range from $0.19 to $0.24, as compared to
$0.05 per share in the fourth quarter of 2003. Full year earnings
per share should range from $0.57 to $0.62, as compared to $0.14 in
2003. The fourth quarter of 2004 ends on January 2, 2005.
Accordingly, our fourth quarter will contain 14 weeks, and our
fiscal year will include 53 weeks. This fiscal 'leap year' occurs
every five or six years, and is necessary to align the fiscal and
calendar periods. "Revenue in our U.S. Commercial staffing segment
increased 7.2% year over year during the third quarter, compared to
the 11.3% increase reported in the second quarter. The gross profit
rate in this segment increased seven-tenths of a percent, primarily
due to lower workers compensation costs. Expenses increased 4.5%
compared to last year. Operating earnings totaled $29.7 million, an
increase of 29.9% compared to last year. "Revenue in our
Professional, Technical, and Staffing Alternatives (PTSA) segment
increased 18.0% year over year during the third quarter, compared
to the prior quarter's increase of 14.7%. Kelly Law Registry and
Kelly Engineering Resources were the leading professional and
technical performers in the third quarter. Kelly HR First and Kelly
Vendor Management continue to be the leading staffing alternatives
units. Kelly Home Care and the Automotive Services Group
experienced revenue decreases during the quarter. The PTSA gross
profit rate increased three-tenths of one percent, primarily due to
increased fee based income. Expenses increased 11.6% as compared to
last year. Operating earnings totaled $16.5 million and increased
38.0% on a year over year basis. "Revenue in our International
segment, as measured in U.S. dollars, increased 20.3% year over
year during the third quarter, as compared to a 23.4% increase in
the second quarter. The International gross profit rate increased
by two-tenths of a percent, primarily due to growth in fee based
income. Operating expenses increased by 14.7% in U.S. dollar terms.
Operating earnings totaled $6.2 million, a significant improvement
compared to earnings of $1.7 million last year. "On a constant
currency basis, International segment revenue increased 11.5% year
over year in the third quarter, as compared to 15.9% growth in the
second quarter. Total company revenue for the third quarter of 2004
increased 10.7% on a constant currency basis as compared to 13.4%
growth in the second quarter. Constant currency revenue growth was
positive in all regions: Americas increased 12%, Europe increased
10%, and Asia Pacific increased 17%. International expenses
increased by 5.8% on a constant currency basis." Mr. Adderley
concluded, "With three solid quarters behind us, 2004 is turning
out to be a very good year. We are well positioned for a strong
performance in 2005." In conjunction with its third quarter
earnings release, Kelly Services, Inc. will host a conference call
at 8:30 a.m. (ET) on October 19, 2004 to review the results. The
call may be accessed in one of the following ways: Via the
Telephone: U.S. 1-800-230-1074 International 1-612-288-0318 The
conference call leader is Terence Adderley The passcode is Kelly
Services Via the Internet: You may access the call 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, the company's ability to effectively manage its
information technology programs, 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, staff leasing, outsourcing, vendor on-site and
full-time placement. With nearly 2,500 company owned and operated
offices in 26 countries, Kelly provides to its customers nearly
700,000 employees annually, with skills including office services,
accounting, engineering, information technology, law, science,
marketing, light industrial, education and health care. Revenue in
2003 was $4.3 billion. Visit http://www.kellyservices.com/ . KELLY
SERVICES, INC. AND SUBSIDIARIES STATEMENTS OF EARNINGS FOR THE 13
WEEKS ENDED SEPTEMBER 26, 2004 AND SEPTEMBER 28, 2003 (UNAUDITED)
(In thousands of dollars except per share data) 2004 2003 Change %
Change Revenue from services $1,244,854 $1,097,268 $147,586 13.5%
Cost of services 1,042,486 924,661 117,825 12.7 Gross profit
202,368 172,607 29,761 17.2 Selling, general and administrative
expenses 189,908 169,898 20,010 11.8 Earnings from operations
12,460 2,709 9,751 359.9 Interest expense, net (194) (84) (110)
(131.0) Earnings before taxes 12,266 2,625 9,641 367.3 Income taxes
4,894 1,121 3,773 336.6 Net earnings $7,372 $1,504 $5,868 390.2%
Basic earnings per share $0.21 $0.04 $0.17 425.0% Diluted earnings
per share $0.21 $0.04 $0.17 425.0% STATISTICS: Gross profit rate
16.3% 15.7% 0.6% Expenses as a % of revenue 15.3 15.5 (0.2) %
Return - Earnings from operations 1.0 0.2 0.8 Earnings before taxes
1.0 0.2 0.8 Net earnings 0.6 0.1 0.5 Effective income tax rate
39.9% 42.7% (2.8)% Average number of shares outstanding
(thousands): Basic 35,199 35,321 Diluted 35,424 35,490 KELLY
SERVICES, INC. AND SUBSIDIARIES STATEMENTS OF EARNINGS FOR THE 39
WEEKS ENDED SEPTEMBER 26, 2004 AND SEPTEMBER 28, 2003 (UNAUDITED)
(In thousands of dollars except per share data) 2004 2003 Change %
Change Revenue from services $3,628,129 $3,160,182 $467,947 14.8%
Cost of services 3,044,323 2,649,619 394,704 14.9 Gross profit
583,806 510,563 73,243 14.3 Selling, general and administrative
expenses 560,654 505,015 55,639 11.0 Earnings from operations
23,152 5,548 17,604 317.3 Interest (expense) income, net (716) 42
(758) NM Earnings before taxes 22,436 5,590 16,846 301.4 Income
taxes 8,952 2,292 6,660 290.6 Net earnings $13,484 $3,298 $10,186
308.9% Basic earnings per share $0.38 $0.09 $0.29 322.2% Diluted
earnings per share $0.38 $0.09 $0.29 322.2% STATISTICS: Gross
profit rate 16.1% 16.2% (0.1)% Expenses as a % of revenue 15.5 16.0
(0.5) % Return - Earnings from operations 0.6 0.2 0.4 Earnings
before taxes 0.6 0.2 0.4 Net earnings 0.4 0.1 0.3 Effective income
tax rate 39.9% 41.0% (1.1)% Average number of shares outstanding
(thousands): Basic 35,046 35,488 Diluted 35,400 35,549 NM
Percentage change not meaningful. KELLY SERVICES, INC. AND
SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (UNAUDITED) (In
thousands of dollars) Third Quarter 2004 2003 Change % Change
Revenue from Services: U.S. Commercial Staffing $573,972 $535,345
$38,627 7.2% PTSA 260,965 221,221 39,744 18.0 International 409,917
340,702 69,215 20.3 Consolidated Total $1,244,854 $1,097,268
$147,586 13.5% Earnings from Operations: U.S. Commercial Staffing
$29,696 $22,852 $6,844 29.9% PTSA 16,480 11,938 4,542 38.0
International 6,199 1,672 4,527 270.8 Corporate Expense (39,915)
(33,753) (6,162) (18.3) Consolidated Total $12,460 $2,709 $9,751
359.9% September Year to Date 2004 2003 Change % Change Revenue
from Services: U.S. Commercial Staffing $1,704,861 $1,562,319
$142,542 9.1% PTSA 756,133 666,445 89,688 13.5 International
1,167,135 931,418 235,717 25.3 Consolidated Total $3,628,129
$3,160,182 $467,947 14.8% Earnings (Loss) from Operations: U.S.
Commercial Staffing $83,654 $70,219 $13,435 19.1% PTSA 46,864
38,030 8,834 23.2 International 7,317 (2,396) 9,713 NM Corporate
Expense (114,683) (100,305) (14,378) (14.3) Consolidated Total
$23,152 $5,548 $17,604 317.3% NM Percentage change not meaningful.
KELLY SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF CONSTANT
CURRENCY REVENUE FROM SERVICES TO REPORTED REVENUE FROM SERVICES
(UNAUDITED) (In thousands of dollars) Third Quarter 2004 2003
Change % Change U.S. Commercial $573,972 $535,345 $38,627 7.2% PTSA
260,965 221,221 39,744 18.0 International - constant currency*
379,795 340,702 39,093 11.5 Revenue from services - constant
currency 1,214,732 1,097,268 117,464 10.7% Foreign currency impact
30,122 30,122 Revenue from services $1,244,854 $1,097,268 $147,586
13.5% September Year to Date 2004 2003 Change % Change U.S.
Commercial $1,704,861 $1,562,319 $142,542 9.1% PTSA 756,133 666,445
89,688 13.5 International - constant currency* 1,069,851 931,418
138,433 14.9 Revenue from services - constant currency 3,530,845
3,160,182 370,663 11.7% Foreign currency impact 97,284 97,284
Revenue from services $3,628,129 $3,160,182 $467,947 14.8% *
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 BALANCE SHEETS (In thousands
of dollars) September 26, December 28, September 28, 2004 2003 2003
(UNAUDITED) (UNAUDITED) Current Assets Cash and equivalents $87,236
$76,378 $60,838 Short-term investments 377 457 508 Trade accounts
receivable, less allowances of $16,637, $14,983 and $14,541,
respectively 741,938 658,090 637,850 Prepaid expenses and other
current assets 36,834 31,784 30,478 Deferred taxes 21,287 24,962
22,355 Total current assets 887,672 791,671 752,029 Property and
Equipment, Net 171,940 188,122 187,976 Noncurrent Deferred Taxes
11,741 14,606 20,909 Goodwill, Net 84,875 85,788 82,989 Other
Assets 58,674 57,550 53,407 Total Assets $1,214,902 $1,137,737
$1,097,310 Current Liabilities Short-term borrowings $43,109
$39,190 $32,665 Accounts payable 91,458 92,265 84,991 Accrued
payroll and related taxes 254,813 200,503 204,337 Accrued insurance
38,602 36,016 31,676 Income and other taxes 47,503 49,342 46,265
Total current liabilities 475,485 417,316 399,934 Noncurrent
Liabilities Accrued insurance 62,982 58,763 51,683 Accrued
retirement benefits 49,274 48,025 43,962 Total noncurrent
liabilities 112,256 106,788 95,645 Stockholders' Equity Common
stock 40,116 40,116 40,116 Treasury stock (103,830) (113,158)
(116,412) Paid-in capital 20,917 19,096 18,404 Earnings invested in
the business 659,693 656,726 658,381 Accumulated foreign currency
adjustments 10,265 10,853 1,242 Total stockholders' equity 627,161
613,633 601,731 Total Liabilities and Stockholders' Equity
$1,214,902 $1,137,737 $1,097,310 STATISTICS: Working Capital
$412,187 $374,355 $352,095 Current Ratio 1.9 1.9 1.9
Debt-to-capital % 6.4% 6.0% 5.1% Global Days Sales Outstanding
Quarter 54 51 53 Year-to-date 56 55 55 KELLY SERVICES, INC. AND
SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE 39 WEEKS ENDED
SEPTEMBER 26, 2004 AND SEPTEMBER 28, 2003 (UNAUDITED) (In thousands
of dollars) 2004 2003 Cash flows from operating activities Net
earnings $13,484 $3,298 Noncash adjustments: Depreciation and
amortization 33,297 36,092 Increase in trade accounts receivable,
net (83,377) (63,572) Changes in other operating assets and
liabilities 69,096 35,868 Net cash from operating activities 32,500
11,686 Cash flows from investing activities Capital expenditures
(16,665) (20,154) Decrease in short-term investments 80 91 Increase
in other assets (769) (2,282) Net cash from investing activities
(17,354) (22,345) Cash flows from financing activities Increase in
short-term borrowings 3,896 5,562 Dividend payments (10,517)
(10,676) Stock options and other 2,568 177 Purchase of treasury
stock (3) (26,141) Net cash from financing activities (4,056)
(31,078) Effect of exchange rates on cash and equivalents (232)
1,639 Net change in cash and equivalents 10,858 (40,098) Cash and
equivalents at beginning of period 76,378 100,936 Cash and
equivalents at end of period $87,236 $60,838
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