TROY, MI (NASDAQ: KELYB), a world leader in human resources
solutions, today announced results for the first quarter of
2008.
Carl T. Camden, President and Chief Executive Officer, announced
revenue for the first quarter of 2008 totaled $1.4 billion, a 3%
increase compared to the corresponding quarter in 2007.
Earnings from operations for the first quarter of 2008 totaled
$12.9 million, a 23% increase compared to $10.5 million reported
for the first quarter of 2007. Included in earnings from operations
in the first quarter of 2007 are $2.6 million of restructuring
costs related to our UK operations.
Diluted earnings per share from continuing operations in the
first quarter of 2008 were $0.23, an increase of 64% as compared to
first quarter 2007 earnings of $0.14 per share. Included in first
quarter 2007 diluted earnings is the $0.07 per share cost of the UK
restructuring.
Commenting on the results, Camden said, "We're pleased that we
delivered another quarter of solid, profitable results, despite the
ongoing weak economic conditions and continued softness in the US
staffing market. Our strategic commitment to diversify
geographically, move into higher-margin, fee-based business, expand
our professional and technical businesses, and improve operating
margins, is proving its value.
"We have recently completed our organizational alignment to
three regions -- the Americas, EMEA, and APAC. Commencing this
quarter, we began the practice of separately reporting our
Commercial and Professional and Technical financial results for
each region. In addition, we've organized our Staffing Alternatives
businesses under our global Outsourcing and Consulting Group."
Camden concluded, "We expect second quarter 2008 earnings from
continuing operations to be in the range of $0.37 to $0.41 per
share, compared to $0.41 per share from continuing operations in
the second quarter of 2007. Included in the second quarter 2007
earnings from continuing operations was $.07 of UK restructuring
costs, as well as a $0.07 benefit from a temporary change in French
payroll tax law."
In conjunction with its first quarter earnings release, Kelly
Services, Inc. will host a conference call at 9:00 a.m. (ET) on
April 22, 2008 to review the results and answer questions. The call
may be accessed in one of the following ways:
Via the Telephone:
U.S. 1-800-398-9397
International 1-612-332-0523
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
projections contained herein.
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. Kelly operates in 37 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 2007 was $5.7 billion. Visit
www.kellyservices.com.
KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED MARCH 30, 2008 AND APRIL 1, 2007
(UNAUDITED)
(In thousands of dollars except per share data)
2008 2007 Change % Change
----------- ----------- ---------- ----------
Revenue from services $ 1,388,444 $ 1,350,858 $ 37,586 2.8%
Cost of services 1,138,557 1,121,650 16,907 1.5
----------- ----------- ---------- ----------
Gross profit 249,887 229,208 20,679 9.0
Selling, general and
administrative
expenses 236,947 218,715 18,232 8.3
----------- ----------- ---------- ----------
Earnings from operations 12,940 10,493 2,447 23.3
Other (expense) income,
net (51) 673 (724) (107.6)
----------- ----------- ---------- ----------
Earnings from
continuing operations
before taxes 12,889 11,166 1,723 15.4
Income taxes 4,898 5,908 (1,010) (17.1)
----------- ----------- ---------- ----------
Earnings from
continuing operations 7,991 5,258 2,733 52.0
Earnings from
discontinued
operations, net of tax 238 6,657 (6,419) (96.4)
----------- ----------- ---------- ----------
Net earnings $ 8,229 $ 11,915 $ (3,686) (30.9)%
=========== =========== ========== ==========
Basic earnings per
share
Earnings from
continuing
operations $ 0.23 $ 0.14 $ 0.09 64.3%
Earnings from
discontinued
operations 0.01 0.18 (0.17) (94.4)
----------- ----------- ---------- ----------
Net earnings $ 0.24 $ 0.33 $ (0.09) (27.3)%
=========== =========== ========== ==========
Diluted earnings per
share
Earnings from
continuing
operations $ 0.23 $ 0.14 $ 0.09 64.3%
Earnings from
discontinued
operations 0.01 0.18 (0.17) (94.4)
----------- ----------- ---------- ----------
Net earnings $ 0.24 $ 0.32 $ (0.08) (25.0)%
=========== =========== ========== ==========
STATISTICS:
Gross profit rate 18.0% 17.0% 1.0 %
Selling, general and
administrative
expenses:
% of revenue 17.1 16.2 0.9
% of gross profit 94.8 95.4 (0.6)
% Return - Earnings
from operations 0.9 0.8 0.1
Earnings from continuing
operations before taxes 0.9 0.8 0.1
Earnings from continuing
operations 0.6 0.4 0.2
Net earnings 0.6 0.9 (0.3)
Effective income tax
rate 38.0% 52.9% (14.9)%
Average number of
shares outstanding
(thousands):
Basic 34,823 36,511
Diluted 34,955 36,898
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In thousands of dollars)
First Quarter
2008 2007 Change % Change
----------- ----------- ----------- ----------
Revenue from Services:
Americas Commercial $ 639,939 $ 684,051 $ (44,112) (6.4)%
Americas PT 232,177 227,629 4,548 2.0
----------- ----------- ----------- ----------
Total Americas
Commercial and PT 872,116 911,680 (39,564) (4.3)
EMEA Commercial 321,909 297,439 24,470 8.2
EMEA PT 43,787 36,116 7,671 21.2
----------- ----------- ----------- ----------
Total EMEA
Commercial and PT 365,696 333,555 32,141 9.6
APAC Commercial 86,693 62,799 23,894 38.0
APAC PT 8,486 4,599 3,887 84.5
----------- ----------- ----------- ----------
Total APAC
Commercial and PT 95,179 67,398 27,781 41.2
OCG 55,453 38,225 17,228 45.1
----------- ----------- ----------- ----------
Consolidated Total $ 1,388,444 $ 1,350,858 $ 37,586 2.8%
=========== =========== =========== ==========
Earnings from
Operations:
Americas Commercial $ 22,195 $ 23,107 $ (912) (3.9)%
Americas PT 14,103 13,552 551 4.1
----------- ----------- ----------- ----------
Total Americas
Commercial and PT 36,298 36,659 (361) (1.0)
EMEA Commercial (1,579) (4,468) 2,889 64.7
EMEA PT 1,024 316 708 224.1
----------- ----------- ----------- ----------
Total EMEA
Commercial and PT (555) (4,152) 3,597 86.6
APAC Commercial 65 676 (611) (90.4)
APAC PT (210) (147) (63) (42.9)
----------- ----------- ----------- ----------
Total APAC
Commercial and PT (145) 529 (674) (127.4)
OCG 1,817 527 1,290 244.8
Corporate Expense (24,475) (23,070) (1,405) (6.1)
----------- ----------- ----------- ----------
Consolidated Total $ 12,940 $ 10,493 $ 2,447 23.3%
=========== =========== =========== ==========
Earnings from
Operations (Excluding
Restructuring
Charges):
Americas Commercial $ 22,195 $ 23,107 $ (912) (3.9)%
Americas PT 14,103 13,552 551 4.1
----------- ----------- ----------- ----------
Total Americas
Commercial and PT 36,298 36,659 (361) (1.0)
EMEA Commercial (1,579) (1,834) 255 13.9
EMEA PT 1,024 316 708 224.1
----------- ----------- ----------- ----------
Total EMEA
Commercial and PT (555) (1,518) 963 63.4
APAC Commercial 65 676 (611) (90.4)
APAC PT (210) (147) (63) (42.9)
----------- ----------- ----------- ----------
Total APAC
Commercial and PT (145) 529 (674) (127.4)
OCG 1,817 527 1,290 244.8
Corporate Expense (24,475) (23,070) (1,405) (6.1)
----------- ----------- ----------- ----------
Consolidated Total $ 12,940 $ 13,127 $ (187) (1.4)%
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSTANT CURRENCY
REVENUE FROM SERVICES TO REPORTED REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
First Quarter
2008 2007 Change % Change
------------ ------------ ----------- ----------
Revenue from services -
constant currency*:
Americas Commercial $ 631,311 $ 684,051 $ (52,740) (7.7)%
Americas PT 231,742 227,629 4,113 1.8
------------ ------------ ----------- ----------
Total Americas
Commercial and PT -
constant currency* 863,053 911,680 (48,627) (5.3)
EMEA Commercial 292,664 297,439 (4,775) (1.6)
EMEA PT 39,475 36,116 3,359 9.3
------------ ------------ ----------- ----------
Total EMEA Commercial
and PT - constant
currency* 332,139 333,555 (1,416) (0.4)
APAC Commercial 77,504 62,799 14,705 23.4
APAC PT 7,518 4,599 2,919 63.5
------------ ------------ ----------- ----------
Total APAC Commercial
and PT - constant
currency* 85,022 67,398 17,624 26.1
OCG 54,339 38,225 16,114 42.2
------------ ------------ ----------- ----------
Total revenue from
services - constant
currency* 1,334,553 1,350,858 (16,305) (1.2)%
Foreign currency impact 53,891 53,891
------------ ------------ ----------- ----------
Revenue from services $ 1,388,444 $ 1,350,858 $ 37,586 2.8%
============ ============ =========== ==========
* 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
SUMMARY OF DISCONTINUED OPERATIONS
(UNAUDITED)
(In thousands of dollars)
First Quarter
---------------------
2008 2007
---------- ----------
Revenue from services $ - $ 14,777
Operating income from discontinued operations $ 385 $ 798
Less: Income taxes 147 307
---------- ----------
Earnings from discontinued operations, net of tax 238 491
---------- ----------
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 $ 238 $ 6,657
========== ==========
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 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
BALANCE SHEETS
(UNAUDITED)
(In thousands of dollars)
March 30, December 30, April 1,
2008 2007 2007
----------- ----------- -----------
Current Assets
Cash and equivalents $ 87,933 $ 92,817 $ 120,829
Trade accounts receivable, less
allowances of $18,393, $18,172
and $17,884, respectively 931,429 888,334 828,005
Prepaid expenses and other
current assets 58,266 53,392 49,569
Deferred taxes 26,996 29,294 25,678
----------- ----------- -----------
Total current assets 1,104,624 1,063,837 1,024,081
Property and Equipment, Net 175,587 178,019 168,230
Noncurrent Deferred Taxes 43,171 43,436 35,731
Goodwill, Net 145,134 147,168 121,207
Other Assets 154,310 141,537 135,570
----------- ----------- -----------
Total Assets $ 1,622,826 $ 1,573,997 $ 1,484,819
=========== =========== ===========
Current Liabilities
Short-term borrowings $ 47,839 $ 49,729 $ 75,594
Accounts payable 218,296 171,471 135,382
Accrued payroll and related taxes 275,852 270,575 266,039
Accrued insurance 22,609 23,696 24,203
Income and other taxes 60,681 69,779 56,580
----------- ----------- -----------
Total current liabilities 625,277 585,250 557,798
Noncurrent Liabilities
Long-term debt 54,947 48,394 -
Accrued insurance 57,703 60,404 57,219
Accrued retirement benefits 75,108 78,382 74,519
Other long-term liabilities 16,209 13,338 21,293
----------- ----------- -----------
Total noncurrent liabilities 203,967 200,518 153,031
Stockholders' Equity
Common stock 40,116 40,116 40,116
Treasury stock (113,454) (106,312) (74,231)
Paid-in capital 34,488 34,500 33,205
Earnings invested in the business 780,824 777,338 742,718
Accumulated other comprehensive
income 51,608 42,587 32,182
----------- ----------- -----------
Total stockholders' equity 793,582 788,229 773,990
----------- ----------- -----------
Total Liabilities and Stockholders'
Equity $ 1,622,826 $ 1,573,997 $ 1,484,819
=========== =========== ===========
----------- ----------- -----------
STATISTICS:
Working Capital $ 479,347 $ 478,587 $ 466,283
Current Ratio 1.8 1.8 1.8
Debt-to-capital % 11.5% 11.1% 8.9%
Global Days Sales Outstanding 52 49 51
KELLY SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
FOR THE 13 WEEKS ENDED MARCH 30, 2008 AND APRIL 1, 2007
(UNAUDITED)
(In thousands of dollars)
2008 2007
--------- ---------
Cash flows from operating activities
Net earnings $ 8,229 $ 11,915
Noncash adjustments:
Depreciation and amortization 11,303 10,551
Provision for bad debts 1,451 1,961
Stock-based compensation 1,049 918
Gain on sale of discontinued operations - (6,166)
Other, net 105 (262)
Changes in operating assets and liabilities (2,860) (4,884)
--------- ---------
Net cash from operating activities 19,277 14,033
--------- ---------
Cash flows from investing activities
Capital expenditures (6,431) (8,544)
Acquisition of companies, net of cash received (3,261) (16,869)
Proceeds from sale of discontinued operations - 12,500
Other investing activities (308) 13
--------- ---------
Net cash from investing activities (10,000) (12,900)
--------- ---------
Cash flows from financing activities
Net decrease in revolving line of credit (4,263) (1,857)
Proceeds from debt - 8,223
Dividend payments (4,743) (4,633)
Purchase of treasury stock (7,975) -
Stock options and other stock sales 32 4,895
Other financing activities (1,534) (6,565)
--------- ---------
Net cash from financing activities (18,483) 63
--------- ---------
Effect of exchange rates on cash and equivalents 4,322 1,205
--------- ---------
Net change in cash and equivalents (4,884) 2,401
Cash and equivalents at beginning of period 92,817 118,428
--------- ---------
Cash and equivalents at end of period $ 87,933 $ 120,829
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In thousands of dollars)
First Quarter
---------------------------------------------
% Change
Constant
2008 2007 US$ Currency
----------- ----------- --------- ---------
Americas
United States $ 820,740 $ 852,272 (3.7)% (3.7)%
Canada 61,839 59,444 4.0 (10.9)
Puerto Rico 18,843 18,753 0.5 0.5
Mexico 17,670 17,015 3.8 1.8
----------- ----------- --------- ---------
Total Americas 919,092 947,484 (3.0) (4.0)
EMEA
United Kingdom 104,879 117,883 (11.0) (12.1)
France 86,602 68,971 25.6 9.9
Switzerland 42,191 36,561 15.4 0.0
Italy 35,352 30,362 16.4 1.9
Germany 21,373 13,518 58.1 38.4
Russia 20,744 15,162 36.8 26.1
Norway 19,976 16,140 23.8 5.7
Other 40,458 35,339 14.5 0.4
----------- ----------- --------- ---------
Total EMEA 371,575 333,936 11.3 1.0
APAC
Australia 35,700 29,301 21.8 5.9
Singapore 17,791 13,130 35.5 24.7
Other 44,286 27,007 64.0 48.0
----------- ----------- --------- ---------
Total APAC 97,777 69,438 40.8 25.8
Total Kelly Services, Inc. $ 1,388,444 $ 1,350,858 2.8 % (1.2)%
=========== =========== ========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In thousands of dollars except per share data)
First Quarter
------------------------------------------
2008 2007
-------------------- --------------------
Amount Per Share Amount Per Share
--------- ---------- --------- ---------
Earnings from continuing
operations $ 7,991 $ 0.23 $ 5,258 $ 0.14
U.K. restructuring charge
(1) - - 2,634 0.07
--------- ---------- --------- ---------
Earnings from continuing
operations excluding the U.K.
restructuring charge $ 7,991 $ 0.23 $ 7,892 $ 0.21
========= ========== ========= =========
First Quarter
------------------------------------------
2008 2007 % Change
--------- --------- ---------
Selling, general and
administrative expenses $ 236,947 $ 218,715
U.K. restructuring charge (1) - (2,634)
--------- ---------
Selling, general and
administrative expenses
excluding the U.K.
restructuring charge $ 236,947 $ 216,081 9.7%
========= ========= =========
Earnings from operations $ 12,940 $ 10,493
U.K. restructuring charge (1) - 2,634
--------- ---------
Earnings from operations
excluding the U.K. restructuring
charge $ 12,940 $ 13,127 (1.4%)
========= ========= =========
EMEA Commercial selling, general
and administrative expenses $ 57,191 $ 53,448
U.K. restructuring charge (1) - (2,634)
--------- ---------
EMEA Commercial selling, general
and administrative expenses
excluding the U.K. restructuring
charge $ 57,191 $ 50,814 12.5%
========= ========= =========
EMEA Commercial earnings from
operations $ (1,579) $ (4,468)
U.K. restructuring charge (1) - 2,634
--------- ---------
EMEA Commercial earnings from
operations excluding the U.K.
restructuring charge $ (1,579) $ (1,834) 13.9%
========= ========= =========
EMEA Commercial and PT earnings
from operations $ (555) $ (4,152)
U.K. restructuring charge (1) - 2,634
--------- ---------
EMEA Commercial and PT earnings
from operations excluding the
U.K. restructuring charge $ (555) $ (1,518) 63.4%
========= ========= =========
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 restructuring
charge from prior year results is useful to understand the
Company's fiscal 2008 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 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 U.K. 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.
ANALYST CONTACT: James Polehna (248) 244-4586 Email Contact
MEDIA CONTACT: Renee Walker (248) 244-4305 Email Contact
Kelly Services (NASDAQ:KELYA)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Kelly Services (NASDAQ:KELYA)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024