Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in
providing workforce solutions, today announced results for the
first quarter.
Carl T. Camden, President and Chief Executive Officer, announced
revenue for the first quarter of 2011 totaled $1.3 billion, a 19%
increase compared to the corresponding quarter in 2010.
Earnings from operations for the first quarter of 2011 totaled
$1.6 million, compared to losses from operations of $1.6 million
reported for the first quarter of 2010. Included in the results
from operations are restructuring charges of $4.0 million in the
first quarter of 2011 and $4.4 million in the first quarter of
2010. Excluding restructuring charges, earnings from operations
were $5.6 million in the first quarter of 2011 and $2.8 million in
the first quarter of 2010.
Diluted earnings per share in the first quarter of 2011 were
$0.03 compared to first quarter 2010 losses of $0.06 per share.
Excluding restructuring charges, diluted earnings per share were
$0.14 in the first quarter of 2011 and $0.05 in the first quarter
of 2010.
Commenting on the first quarter results, Camden stated, "We
continue to see evidence of a solid, sustainable economic recovery.
Kelly's revenue growth for the period certainly confirms that we
are on track for a profitable year."
Camden added, "Until full confidence is restored, and employers
remain cautious about ramping up too aggressively, this environment
seems to favor the staffing industry -- and we intend to capitalize
on the opportunities presented.
"Going forward, Kelly is committed to improving our competitive
position and enhancing shareholder value by delivering
customer-focused workforce solutions -- spanning traditional
staffing, professional and technical offerings, and outsourcing and
consulting services, and maintaining talent excellence throughout
our company."
In conjunction with its first quarter earnings release, Kelly
Services, Inc. will host a conference call at 9:00 a.m. (ET) on May
11, 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, changing market and economic
conditions, our ability to achieve our business strategy, including
our ability to successfully expand into new markets and service
lines, material changes in demand from or loss of large corporate
customers, further impairment charges initiated by adverse industry
or market developments, unexpected termination of customer
contracts, availability of temporary workers with appropriate
skills required by customers, liabilities for employment-related
claims and losses, including class action lawsuits, unexpected
changes in claim trends on workers' compensation and benefit plans,
our ability to maintain specified financial covenants in our bank
facilities, our ability to access credit markets and continued
availability of financing for funding working capital, 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 retain the services
of our senior management, local management and field personnel, the
impact of changes in laws and regulations (including federal, state
and international tax laws), the net financial impact of recent
U.S. healthcare legislation on our business, risks associated with
conducting business in foreign countries, including foreign
currency fluctuations, 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®
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a leader
in providing workforce solutions. Kelly® offers a comprehensive
array of outsourcing and consulting services as well as world-class
staffing on a temporary, temporary-to-hire and direct-hire basis.
Serving clients around the globe, Kelly provides employment to more
than 530,000 employees annually. Revenue in 2010 was $5 billion.
Visit www.kellyservices.com and connect with us on Facebook®,
LinkedIn®, and Twitter®.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars except per share data)
2011 2010 Change % Change
-------- -------- ------ -------
Revenue from services $1,339.1 $1,130.4 $208.7 18.5%
Cost of services 1,125.4 950.4 175.0 18.4
-------- -------- ------ -------
Gross profit 213.7 180.0 33.7 18.7
Selling, general and administrative
expenses 212.1 181.6 30.5 16.8
-------- -------- ------ -------
Earnings (loss) from operations 1.6 (1.6) 3.2 NM
Other expense, net (0.4) (1.1) 0.7 60.5
-------- -------- ------ -------
Earnings (loss) before taxes 1.2 (2.7) 3.9 NM
Income taxes 0.1 (0.7) 0.8 107.7
-------- -------- ------ -------
Net earnings (loss) $ 1.1 $ (2.0) $ 3.1 NM%
======== ======== ====== =======
Earnings (loss) per share
Basic $ 0.03 $ (0.06) $ 0.09 NM%
Diluted $ 0.03 $ (0.06) $ 0.09 NM%
STATISTICS:
Gross profit rate 16.0% 15.9% 0.1pts.
Selling, general and administrative
expenses:
% of revenue 15.8 16.1 (0.3)
% of gross profit 99.2 100.9 (1.7)
% Return - Earnings (loss) from
operations 0.1 (0.1) 0.2
Earnings (loss)
before taxes 0.1 (0.2) 0.3
Net earnings (loss) 0.1 (0.2) 0.3
Effective income tax rate 4.5% 26.4% (21.9)pts.
Average number of shares outstanding
(millions):
Basic 36.7 35.0
Diluted 36.7 35.0
Shares adjusted for nonvested
restricted awards (millions):
Basic 37.4 N/A
Diluted 37.4 N/A
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
First Quarter
--------------------------------------
Constant
Currency
2011 2010 Change Change
------- ------- ------ --------
Americas Commercial
Revenue from services (including
fee-based income) $ 653.3 $ 547.7 19.3% 18.5%
Fee-based income 2.8 2.1 34.2 32.6
Gross profit 92.5 78.5 17.8 17.1
SG&A expenses excluding
restructuring charges 75.8 65.1 16.6
Restructuring charges - 0.3 (100.0)
Total SG&A expenses 75.8 65.4 16.0 15.4
Earnings from operations 16.7 13.1 26.8
Earnings from operations
excluding restructuring charges 16.7 13.4 23.4
Gross profit rate 14.2% 14.3% (0.1)pts.
Expense rates (excluding
restructuring charges):
% of revenue 11.6 11.9 (0.3)
% of gross profit 82.0 82.8 (0.8)
Operating margin (excluding
restructuring charges) 2.6 2.5 0.1
Americas PT
Revenue from services (including
fee-based income) $ 240.6 $ 205.6 17.0% 16.9%
Fee-based income 2.8 2.3 21.2 21.0
Gross profit 36.1 31.5 14.5 14.4
Total SG&A expenses 27.6 23.0 19.8 19.7
Earnings from operations 8.5 8.5 0.2
Gross profit rate 15.0% 15.3% (0.3)pts.
Expense rates:
% of revenue 11.5 11.2 0.3
% of gross profit 76.4 73.0 3.4
Operating margin 3.5 4.1 (0.6)
EMEA Commercial
Revenue from services (including
fee-based income) $ 231.5 $ 204.9 13.0% 10.1%
Fee-based income 5.8 4.8 19.4 16.1
Gross profit 37.3 32.8 13.7 10.8
SG&A expenses excluding
restructuring charges 35.3 32.4 9.0
Restructuring charges 4.0 2.7 47.9
Total SG&A expenses 39.3 35.1 12.0 8.1
Earnings from operations (2.0) (2.3) 13.1
Earnings from operations
excluding restructuring charges 2.0 0.4 378.2
Gross profit rate 16.1% 16.0% 0.1pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.2 15.8 (0.6)
% of gross profit 94.6 98.7 (4.1)
Operating margin (excluding
restructuring charges) 0.9 0.2 0.7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
First Quarter
-----------------------------------
Constant
Currency
2011 2010 Change Change
----- ------ ------ --------
EMEA PT
Revenue from services (including
fee-based income) $41.4 $ 34.9 18.6% 16.3%
Fee-based income 4.4 3.7 18.5 15.7
Gross profit 11.0 9.4 16.6 14.4
Total SG&A expenses 10.7 9.5 12.4 9.0
Earnings from operations 0.3 (0.1) NM
Gross profit rate 26.6% 27.1% (0.5)pts.
Expense rates:
% of revenue 25.9 27.3 (1.4)
% of gross profit 97.3 101.0 (3.7)
Operating margin 0.7 (0.3) 1.0
APAC Commercial
Revenue from services (including
fee-based income) $99.7 $ 80.9 23.2% 13.5%
Fee-based income 3.5 2.8 26.6 16.4
Gross profit 13.5 11.4 18.7 8.8
SG&A expenses excluding
restructuring charges 13.3 9.9 35.1
Restructuring charges - 0.5 (100.0)
Total SG&A expenses 13.3 10.4 28.1 17.7
Earnings from operations 0.2 1.0 (82.8)
Earnings from operations excluding
restructuring charges 0.2 1.5 (89.0)
Gross profit rate 13.6% 14.1% (0.5)pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.4 12.2 1.2
% of gross profit 98.8 86.8 12.0
Operating margin (excluding
restructuring charges) 0.2 1.9 (1.7)
APAC PT
Revenue from services (including
fee-based income) $11.5 $ 7.6 50.6% 40.6%
Fee-based income 3.8 1.9 104.0 90.0
Gross profit 5.0 2.8 79.4 66.8
Total SG&A expenses 5.7 3.8 52.9 42.2
Earnings from operations (0.7) (1.0) 25.6
Gross profit rate 43.7% 36.7% 7.0pts.
Expense rates:
% of revenue 49.8 49.1 0.7
% of gross profit 114.0 133.8 (19.8)
Operating margin (6.1) (12.4) 6.3
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
First Quarter
---------------------------------------
Constant
Currency
2011 2010 Change Change
-------- -------- ------ --------
OCG
Revenue from services (including
fee-based income) $ 68.2 $ 55.3 23.4% 22.7%
Fee-based income 8.7 6.1 42.6 39.6
Gross profit 18.9 14.0 35.5 33.9
SG&A expenses excluding
restructuring charges 21.3 18.4 15.4
Restructuring charges - 0.1 (100.0)
Total SG&A expenses 21.3 18.5 14.9 13.0
Earnings from operations (2.4) (4.5) 48.0
Earnings from operations
excluding restructuring charges (2.4) (4.4) 47.1
Gross profit rate 27.7% 25.3% 2.4pts.
Expense rates (excluding
restructuring charges):
% of revenue 31.2 33.4 (2.2)
% of gross profit 112.5 132.1 (19.6)
Operating margin (excluding
restructuring charges) (3.5) (8.1) 4.6
Corporate Expense
SG&A expenses excluding
restructuring charges $ 19.0 $ 15.5 22.0%
Restructuring charges - 0.8 (100.0)
Total SG&A expenses 19.0 16.3 16.3
Consolidated Total (net of
intersegment activity)
Revenue from services (including
fee-based income) $1,339.1 $1,130.4 18.5% 16.7%
Fee-based income 31.8 23.7 34.3 29.9
Gross profit 213.7 180.0 18.7 16.8
SG&A expenses excluding
restructuring charges 208.1 177.2 17.4
Restructuring charges 4.0 4.4 (10.3)
Total SG&A expenses 212.1 181.6 16.8 14.6
Earnings from operations 1.6 (1.6) NM
Earnings from operations
excluding restructuring charges 5.6 2.8 95.7
Gross profit rate 16.0% 15.9% 0.1pts.
Expense rates (excluding
restructuring charges):
% of revenue 15.5 15.7 (0.2)
% of gross profit 97.4 98.4 (1.0)
Operating margin (excluding
restructuring charges) 0.4 0.3 0.1
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
April 3, January 2, April 4,
2011 2011 2010
-------- --------- --------
Current Assets
Cash and equivalents $ 59.8 $ 80.5 $ 55.7
Trade accounts receivable, less allowances
of $13.2, $12.3 and $14.4, respectively 875.8 810.9 727.3
Prepaid expenses and other current assets 68.4 44.8 79.7
Deferred taxes 17.4 22.4 18.4
-------- --------- --------
Total current assets 1,021.4 958.6 881.1
Property and Equipment, Net 99.5 104.0 120.0
Noncurrent Deferred Taxes 83.9 84.0 76.9
Goodwill, Net 67.3 67.3 67.3
Other Assets 154.9 154.5 144.7
-------- --------- --------
Total Assets $1,427.0 $ 1,368.4 $1,290.0
======== ========= ========
Current Liabilities
Short-term borrowings and current portion
of long-term debt $ 65.4 $ 78.8 $ 68.2
Accounts payable and accrued liabilities 207.3 181.6 165.8
Accrued payroll and related taxes 270.9 243.3 218.2
Accrued insurance 31.5 31.3 22.5
Income and other taxes 61.7 56.0 46.5
-------- --------- --------
Total current liabilities 636.8 591.0 521.2
Noncurrent Liabilities
Long-term debt - - 56.1
Accrued insurance 54.1 53.6 53.7
Accrued retirement benefits 90.2 85.4 77.7
Other long-term liabilities 14.2 14.6 15.5
-------- --------- --------
Total noncurrent liabilities 158.5 153.6 203.0
Stockholders\' Equity
Common stock 40.1 40.1 40.1
Treasury stock (70.8) (70.9) (106.7)
Paid-in capital 29.3 28.0 37.4
Earnings invested in the business 598.7 597.6 569.5
Accumulated other comprehensive income 34.4 29.0 25.5
-------- --------- --------
Total stockholders' equity 631.7 623.8 565.8
-------- --------- --------
Total Liabilities and Stockholders' Equity $1,427.0 $ 1,368.4 $1,290.0
======== ========= ========
STATISTICS:
Working Capital $ 384.6 $ 367.6 $ 359.9
Current Ratio 1.6 1.6 1.7
Debt-to-capital % 9.4% 11.2% 18.0%
Global Days Sales Outstanding 52 49 51
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 13 WEEKS ENDED APRIL 3, 2011 AND APRIL 4, 2010
(UNAUDITED)
(In millions of dollars)
2011 2010
------- -------
Cash flows from operating activities
Net earnings (loss) $ 1.1 $ (2.0)
Noncash adjustments:
Depreciation and amortization 8.3 9.1
Provision for bad debts 1.2 0.1
Stock-based compensation 1.4 1.1
Other, net (0.1) 0.2
Changes in operating assets and liabilities (16.9) (27.4)
------- -------
Net cash from operating activities (5.0) (18.9)
------- -------
Cash flows from investing activities
Capital expenditures (2.5) (1.4)
Other investing activities - 0.1
------- -------
Net cash from investing activities (2.5) (1.3)
------- -------
Cash flows from financing activities
Net change in short-term borrowings 48.3 (11.2)
Repayment of debt (62.9) -
Other financing activities (1.0) -
------- -------
Net cash from financing activities (15.6) (11.2)
------- -------
Effect of exchange rates on cash and equivalents 2.4 (1.8)
------- -------
Net change in cash and equivalents (20.7) (33.2)
Cash and equivalents at beginning of period 80.5 88.9
------- -------
Cash and equivalents at end of period $ 59.8 $ 55.7
======= =======
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
First Quarter (Commercial, PT and OCG)
--------------------------------------
% Change
Constant
2011 2010 US$ Currency
--------- --------- -------- --------
Americas
United States $ 839.7 $ 710.2 18.2% 18.2%
Canada 59.4 51.6 15.1 9.2
Mexico 25.1 19.0 32.1 25.0
Puerto Rico 22.1 14.7 49.6 49.6
--------- ---------
Total Americas 946.3 795.5 18.9 18.4
EMEA
France 70.0 67.3 4.0 4.9
Switzerland 47.2 31.4 50.6 33.5
Russia 34.2 23.3 46.8 43.6
United Kingdom 31.1 37.6 (17.4) (19.9)
Portugal 20.6 18.4 12.3 12.8
Germany 20.3 16.3 24.7 25.5
Italy 16.6 16.7 (0.8) (0.5)
Norway 15.1 13.9 8.8 6.1
Other 23.2 19.2 20.7 20.3
--------- ---------
Total EMEA 278.3 244.1 14.0 11.3
APAC
Australia 36.4 27.6 31.7 18.4
Singapore 26.1 18.9 38.1 25.6
Malaysia 17.6 14.6 20.7 9.3
India 17.6 13.7 28.5 26.8
Other 16.8 16.0 4.6 (1.0)
--------- ---------
Total APAC 114.5 90.8 26.0 16.3
Total Kelly Services, Inc. $ 1,339.1 $ 1,130.4 18.5% 16.7%
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
First Quarter
--------------
2011 2010
------- ------
Pretax earnings (loss) from operations $ 1.6 $ (1.6)
Restructuring charges (Note 1) 4.0 4.4
------- ------
Earnings from operations excluding
restructuring charges $ 5.6 $ 2.8
======= ======
First Quarter
------------------------------
2011 2010
-------------- --------------
Per Per
Amount Share Amount Share
------- ------ ------ ------
Net earnings (loss) $ 1.1 $ 0.03 $ (2.0) $(0.06)
Restructuring charges, net of taxes
(Note 1) 4.0 0.11 3.6 0.10
------- ------
Net earnings excluding restructuring
charges, net of taxes $ 5.1 $ 0.14 $ 1.6 $ 0.05
======= ====== ====== ======
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 2011 financial
performance and 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) In 2010, restructuring costs related primarily to severance
and lease termination costs for branches in the EMEA and APAC
Commercial segments that were in the process of closure at the end
of 2009, as well as severance costs related to the corporate
headquarters. In 2011, restructuring costs relate primarily to
revisions of the estimated lease termination costs for EMEA
Commercial branches that closed in prior years.
ANALYST CONTACT: James Polehna (248) 244-4586
james_polehna@kellyservices.com MEDIA CONTACT: Jane Stehney (248)
244-5630 jane_stehney@kellyservices.com
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