2009-11-06 13:38:01 -
TROY, MI -- (Marketwire) -- 11/06/09 -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a world leader in workforce management services and human resources solutions, today announced results for the third quarter of 2009.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2009 totaled $1.0 billion, a 25% decrease compared to the corresponding quarter in 2008. On a constant currency basis, revenue decreased by 22%.
Losses from operations for the third quarter of 2009 totaled $28.0 million, compared to losses from operations of $14.5 million reported for the third quarter of 2008. Included in the results from operations are legal charges of $4.3 million in the third quarter of 2009 and $22.5 million in the third quarter of 2008.
Diluted losses per share from continuing operations in the third quarter of 2009 were $0.43 compared to third quarter 2008 losses of $0.33 per share.
The legal charges totaled $0.08 per share in the third quarter of 2009 and $0.40 per share in the third quarter of 2008.
Commenting on the third quarter results, Camden was cautiously optimistic.
"We are seeing signs that the global economy is picking up steam and job losses are stabilizing," he said. "In the past few months, trends have shown modest improvement, and we're particularly encouraged by the steady, sequential nature of that upturn."
Camden added that job creation may lag for a while. "Employers are understandably concerned about the sustainability of this recovery and likely will be guarded about expanding their workforce.
"In the meantime, Kelly has done an excellent job of streamlining, managing costs, maintaining a strong balance sheet, and serving our customers.
Today, we're a more agile and focused company. We believe we're in a very good position to grow with this economy."
In conjunction with its third quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on November 6, 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 1 612 234-9959
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.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a world leader in workforce management services and human resources solutions. Kelly offers a comprehensive array of temporary staffing, permanent placement, outsourcing, and consulting services. Kelly serves clients around the globe and provides employment to 650,000 employees annually. Revenue in 2008 was $5.5 billion. Visit www.kellyservices.com :
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KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)
%
2009 2008 Change Change
-------- -------- ------- ------
Revenue from services $1,049.2 $1,397.8 $(348.6) (24.9)%
Cost of services 883.0 1,152.1 (269.1) (23.3)
-------- -------- ------- ------
Gross profit 166.2 245.7 (79.5) (32.4)
Selling, general and
administrative expenses 193.7 260.2 (66.5) (25.6)
Asset impairments 0.5 - 0.5 NM
-------- -------- ------- ------
Loss from operations (28.0) (14.5) (13.5) (92.6)
Other expense, net (1.6) (0.1) (1.5) NM
-------- -------- ------- ------
Loss from continuing
operations before taxes (29.6) (14.6) (15.0) (102.2)
Income taxes (14.8) (3.1) (11.7) (375.4)
-------- -------- ------- ------
Loss from continuing
operations (14.8) (11.5) (3.3) (28.6)
Loss from discontinued
operations, net of tax - (0.7) 0.7 100.0
-------- -------- ------- ------
Net loss $ (14.8) $ (12.2) $ (2.6) (21.6)%
======== ======== ======= ======
Basic loss per share on
common stock
Loss from continuing
operations $ (0.43) $ (0.33) $ (0.10) (30.3)%
Loss from discontinued
operations - (0.02) 0.02 100.0
Net loss (0.43) (0.35) (0.08) (22.9)
Diluted loss per share on
common stock
Loss from continuing
operations $ (0.43) $ (0.33) $ (0.10) (30.3)%
Loss from discontinued
operations - (0.02) 0.02 100.0
Net loss (0.43) (0.35) (0.08) (22.9)
-------- -------- ------- ------
STATISTICS:
Gross profit rate 15.8% 17.6% (1.8) pts.
Selling, general and
administrative expenses:
% of revenue 18.5 18.6 (0.1)
% of gross profit 116.5 105.9 10.6
% Return - Loss from operations (2.7) (1.0) (1.7)
Loss from continuing
operations before taxes (2.8) (1.0) (1.8)
Loss from continuing
operations (1.4) (0.8) (0.6)
Net loss (1.4) (0.9) (0.5)
Effective income tax rate 49.9% 21.2% 28.7 pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)
%
2009 2008 Change Change
-------- -------- --------- ------
Revenue from services $3,120.7 $4,238.2 $(1,117.5) (26.4)%
Cost of services 2,607.3 3,485.2 (877.9) (25.2)
-------- -------- --------- ------
Gross profit 513.4 753.0 (239.6) (31.8)
Selling, general and
administrative expenses 593.4 739.6 (146.2) (19.8)
Asset impairments 53.1 - 53.1 NM
-------- -------- --------- ------
(Loss) earnings from
operations (133.1) 13.4 (146.5) NM
Other expense, net (1.3) - (1.3) NM
-------- -------- --------- ------
(Loss) earnings from
continuing operations before
taxes (134.4) 13.4 (147.8) NM
Income taxes (37.5) 6.5 (44.0) NM
-------- -------- --------- ------
(Loss) earnings from
continuing operations (96.9) 6.9 (103.8) NM
Earnings (loss) from
discontinued operations, net
of tax 0.6 (0.4) 1.0 273.7
-------- -------- --------- ------
Net (loss) earnings $ (96.3) $ 6.5 $ (102.8) NM%
======== ======== ========= ======
Basic (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (2.78) $ 0.19 $ (2.97) NM%
Earnings (loss) from
discontinued operations 0.02 (0.01) 0.03 300.0
Net (loss) earnings (2.76) 0.19 (2.95) NM
Diluted (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (2.78) $ 0.19 $ (2.97) NM%
Earnings (loss) from
discontinued operations 0.02 (0.01) 0.03 300.0
Net (loss) earnings (2.76) 0.19 (2.95) NM
-------- -------- --------- ------
STATISTICS:
Gross profit rate 16.5% 17.8% (1.3) pts.
Selling, general and
administrative expenses:
% of revenue 19.0 17.5 1.5
% of gross profit 115.6 98.2 17.4
% Return - (Loss) earnings
from operations (4.3) 0.3 (4.6)
(Loss) earnings from
continuing operations
before taxes (4.3) 0.3 (4.6)
(Loss) earnings from
continuing operations (3.1) 0.2 (3.3)
Net (loss) earnings (3.1) 0.2 (3.3)
Effective income tax rate 27.9% 48.5% (20.6) pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Third Quarter
-------------------------------------------
Constant
Currency
2009 2008 Change Change
------ ------ ---------- ----------
Americas Commercial
Revenue from services
(including fee-based
income) $467.5 $621.6 (24.8)% (23.6)%
Fee-based income 1.7 4.3 (60.3) (59.3)
Gross profit 67.2 95.2 (29.4) (28.4)
SG&A expenses 67.8 83.3 (18.7) (17.7)
Earnings from operations (0.6) 11.9 (104.8)
Gross profit rate 14.4% 15.3% (0.9) pts.
Expense rates:
% of revenue 14.5 13.4 1.1
% of gross profit 100.8 87.6 13.2
Operating margin (0.1) 1.9 (2.0)
Americas PT
Revenue from services
(including fee-based
income) $192.1 $234.8 (18.2)% (18.1)%
Fee-based income 2.1 5.0 (57.3) (57.2)
Gross profit 29.5 39.1 (24.5) (24.4)
SG&A expenses 24.6 28.9 (14.6) (14.5)
Earnings from operations 4.9 10.2 (52.7)
Gross profit rate 15.4% 16.6% (1.2) pts.
Expense rates:
% of revenue 12.9 12.3 0.6
% of gross profit 83.7 74.0 9.7
Operating margin 2.5 4.3 (1.8)
EMEA Commercial
Revenue from services
(including fee-based
income) $228.0 $353.6 (35.5)% (29.5)%
Fee-based income 3.7 10.2 (64.5) (60.1)
Gross profit 33.9 63.0 (46.2) (41.4)
SG&A expenses 39.5 59.0 (33.2) (27.8)
Earnings from operations (5.6) 4.0 (237.9)
Gross profit rate 14.9% 17.8% (2.9) pts.
Expense rates:
% of revenue 17.3 16.7 0.6
% of gross profit 116.3 93.6 22.7
Operating margin (2.4) 1.1 (3.5)
EMEA PT
Revenue from services
(including fee-based
income) $ 36.4 $ 44.0 (17.3)% (10.7)%
Fee-based income 3.9 6.7 (40.5) (33.6)
Gross profit 9.8 12.9 (23.8) (16.9)
SG&A expenses 9.9 12.5 (20.2) (13.1)
Earnings from operations (0.1) 0.4 (131.7)
Gross profit rate 27.0% 29.3% (2.3) pts.
Expense rates:
% of revenue 27.3 28.3 (1.0)
% of gross profit 101.3 96.8 4.5
Operating margin (0.4) 0.9 (1.3)
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
Third Quarter
----------------------------------------------
Constant
Currency
2009 2008 Change Change
------- ------- --------- --------
APAC Commercial
Revenue from services
(including fee-based
income) $ 71.2 $ 84.9 (16.2)% (12.0)%
Fee-based income 2.3 4.5 (48.4) (46.5)
Gross profit 10.3 14.7 (29.6) (26.4)
SG&A expenses 11.5 14.5 (20.8) (17.6)
Earnings from operations (1.2) 0.2 NM
Gross profit rate 14.5% 17.3% (2.8) pts.
Expense rates:
% of revenue 16.1 17.1 (1.0)
% of gross profit 111.1 98.7 12.4
Operating margin (1.6) 0.2 (1.8)
APAC PT
Revenue from services
(including fee-based
income) $ 6.5 $ 9.2 (29.7)% (28.0)%
Fee-based income 1.0 1.5 (32.7) (30.1)
Gross profit 2.0 2.8 (31.6) (29.7)
SG&A expenses 2.3 2.7 (14.7) (10.6)
Earnings from operations (0.3) 0.1 (347.6)
Gross profit rate 30.3% 31.2% (0.9) pts.
Expense rates:
% of revenue 35.9 29.6 6.3
% of gross profit 118.4 94.9 23.5
Operating margin (5.6) 1.6 (7.2)
OCG
Revenue from services
(including fee-based
income) $ 52.9 $ 55.9 (5.4)% (4.4)%
Fee-based income 5.8 7.4 (21.7) (19.4)
Gross profit 13.7 18.3 (24.7) (23.1)
SG&A expenses 17.4 18.4 (5.2) (3.3)
Earnings from operations (3.7) (0.1) NM
Gross profit rate 26.1% 32.8% (6.7) pts.
Expense rates:
% of revenue 33.0 32.9 0.1
% of gross profit 126.6 100.5 26.1
Operating margin (6.9) (0.2) (6.7)
Corporate Expense $ (20.9) $ (41.2) 49.3%
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Constant
Currency
2009 2008 Change Change
-------- -------- --------- --------
Americas Commercial
Revenue from services
(including fee-based
income) $1,422.9 $1,921.1 (25.9)% (24.3)%
Fee-based income 5.1 12.9 (60.9) (58.7)
Gross profit 210.9 302.6 (30.3) (28.9)
SG&A expenses 209.0 248.8 (16.0) (14.4)
Earnings from operations 1.9 53.8 (96.4)
Gross profit rate 14.8% 15.8% (1.0) pts.
Expense rates:
% of revenue 14.7 13.0 1.7
% of gross profit 99.1 82.2 16.9
Operating margin 0.1 2.8 (2.7)
Americas PT
Revenue from services
(including fee-based
income) $ 584.3 $ 718.9 (18.7)% (18.6)%
Fee-based income 7.2 15.7 (54.2) (54.1)
Gross profit 93.2 124.2 (25.0) (24.8)
SG&A expenses 76.4 85.5 (10.6) (10.3)
Earnings from operations 16.8 38.7 (56.7)
Gross profit rate 15.9% 17.3% (1.4) pts.
Expense rates:
% of revenue 13.1 11.9 1.2
% of gross profit 82.0 68.9 13.1
Operating margin 2.9 5.4 (2.5)
EMEA Commercial
Revenue from services
(including fee-based
income) $ 656.3 $1,027.2 (36.1)% (25.5)%
Fee-based income 12.3 32.0 (61.6) (54.3)
Gross profit 102.8 179.7 (42.8) (33.6)
SG&A expenses 125.8 176.0 (28.5) (18.1)
Earnings from operations (23.0) 3.7 NM
Gross profit rate 15.7% 17.5% (1.8) pts.
Expense rates:
% of revenue 19.2 17.1 2.1
% of gross profit 122.4 97.9 24.5
Operating margin (3.5) 0.4 (3.9)
EMEA PT
Revenue from services
(including fee-based
income) $ 102.3 $ 134.1 (23.7)% (12.1)%
Fee-based income 12.1 21.3 (42.9) (32.1)
Gross profit 28.0 40.0 (30.0) (18.7)
SG&A expenses 30.0 37.2 (19.2) (5.8)
Earnings from operations (2.0) 2.8 (172.0)
Gross profit rate 27.4% 29.8% (2.4) pts.
Expense rates:
% of revenue 29.4 27.7 1.7
% of gross profit 107.2 93.0 14.2
Operating margin (2.0) 2.1 (4.1)
###PRECONTENT2###
ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com :
MEDIA CONTACT:
Judith Clark
(248) 244-5362
judith_clark@kellyservices.com :
