Kelly Services(R) Reports Strong Finish to the Year and Solid 2015 Results
TROY, MI--(Marketwired - February 04, 2016) - Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB)
/EINPresswire.com/ -- Fourth Quarter Highlights
- Earnings from operations triple from a year ago, excluding restructuring
- Earnings per share of $0.88 versus $0.54, excluding restructuring, a 63% increase year-over-year
- OCG segment revenue up 14% year-over-year (up 16% in constant currency)
- Total Company revenue up 3% year-over-year (up 7% in constant currency)
Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB), a global leader in providing workforce solutions, today announced results for the fourth quarter and full year of 2015.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2015 totaled $1.5 billion, a 3% increase (a 7% increase on a constant currency basis) compared to the corresponding quarter of 2014. Revenue for the full year totaled $5.5 billion, a 1% decrease (a 5% increase on a constant currency basis) compared to the prior year. Fourth quarter 2015 and fiscal 2015 include 14 and 53 weeks, respectively.
Earnings from operations for the fourth quarter of 2015 totaled $26.5 million, compared to $2.6 million reported for the fourth quarter of 2014. The results of operations in the fourth quarter of 2014 included restructuring charges of $6.2 million. Excluding the restructuring charges, earnings from operations were $8.8 million in the fourth quarter of 2014.
Earnings from operations for the full year of 2015 totaled $66.7 million compared to $21.9 million in 2014. Included in the results from operations for 2014 are restructuring charges of $12.0 million. Excluding this item, earnings from operations were $33.9 million in 2014.
Diluted earnings per share in the fourth quarter of 2015 were $0.88 compared to $0.44 per share in the fourth quarter of 2014. Included in diluted earnings per share for the fourth quarter of 2014 are restructuring charges of $0.10 per share. Excluding this item, diluted earnings per share for the fourth quarter of 2014 were $0.54 per share.
Diluted earnings per share for the full year of 2015 were $1.39 compared to $0.61 per share in 2014. The diluted earnings per share for 2014 included restructuring charges of $0.19 per share. Excluding this item, diluted earnings per share for 2014 were $0.81 per share.
Commenting on the fourth quarter, Camden stated, "Kelly's fourth quarter performance capped off a year of solid earnings growth, and we are very pleased with our strong operating leverage and strategic execution throughout 2015. All told, excluding the 2014 restructuring charges, we dropped nearly 70% of our full-year constant currency GP dollar growth to the bottom line. Kelly has entered 2016 as a more efficient organization keenly focused on profitability…and we expect our investments in PT and OCG to continue yielding results as we expand Kelly's role as a trusted talent advisor to our clients worldwide."
In conjunction with its fourth quarter and full year earnings release, Kelly Services has published a financial presentation regarding the fourth quarter and full year results on the Investor Relations page of our public website and will host a conference call at 9:00 a.m. (ET) on February 4, 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 and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, the risk our intellectual assets could be infringed upon or compromised, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of full-time employees to lead complex talent supply chain sales and operations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, 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 maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry developments or operational circumstances, unexpected changes in claim trends on workers' compensation, disability and medical benefit plans, the impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax laws ), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, 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
As a global leader in providing workforce solutions, Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Kelly
KLYA-FIN
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 14 WEEKS ENDED JANUARY 3, 2016 AND 13 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
% CC %
2015 2014 Change Change Change
------------ ------------ ----------- ------- -------
Revenue from
services $ 1,461.6 $ 1,425.0 $ 36.6 2.6% 7.3%
Cost of services 1,212.1 1,192.4 19.7 1.7
----------- ----------- ----------
Gross profit 249.5 232.6 16.9 7.2 11.7
Selling, general
and
administrative
expenses 223.0 230.0 (7.0) (3.1) 0.5
----------- ----------- ----------
Earnings from
operations 26.5 2.6 23.9 NM
Other expense,
net 0.7 1.1 (0.4) (40.9)
----------- ----------- ----------
Earnings before
taxes 25.8 1.5 24.3 NM
Income tax
(benefit)
expense (8.4) (15.5) 7.1 46.1
----------- ----------- ----------
Net earnings $ 34.2 $ 17.0 $ 17.2 99.5%
=========== =========== ==========
Basic earnings
per share $ 0.88 $ 0.44 $ 0.44 100.0%
Diluted earnings
per share $ 0.88 $ 0.44 $ 0.44 100.0%
----------------------------------------------------------------------------
STATISTICS:
Gross profit rate 17.1% 16.3% 0.8 pts.
Selling, general
and
administrative
expenses:
% of revenue 15.3 16.1 (0.8)
% of gross
profit 89.4 98.8 (9.4)
% Return:
Earnings from
operations 1.8 0.2 1.6
Earnings before
taxes 1.8 0.1 1.7
Net earnings 2.3 1.2 1.1
Effective income
tax rate (32.4)% (949.7)% 917.3 pts.
Average number of
shares
outstanding
(millions):
Basic 38.0 37.7
Diluted 38.0 37.7
Shares adjusted
for nonvested
restricted
awards
(millions):
Basic 38.9 38.9
Diluted 38.9 38.9
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
% CC %
2015 2014 Change Change Change
----------- ------------ ----------- --------- --------
Revenue from
services $ 5,518.2 $ 5,562.7 $ (44.5) (0.8)% 4.7%
Cost of services 4,597.9 4,654.3 (56.4) (1.2)
---------- ----------- ----------
Gross profit 920.3 908.4 11.9 1.3 6.4
Selling, general
and
administrative
expenses 853.6 886.5 (32.9) (3.7) 0.8
---------- ----------- ----------
Earnings from
operations 66.7 21.9 44.8 206.2
Other expense,
net 4.2 5.3 (1.1) (19.9)
---------- ----------- ----------
Earnings before
taxes 62.5 16.6 45.9 277.4
Income tax
expense
(benefit) 8.7 (7.1) 15.8 221.4
---------- ----------- ----------
Net earnings $ 53.8 $ 23.7 $ 30.1 126.9%
========== =========== ==========
Basic earnings
per share $ 1.39 $ 0.61 $ 0.78 127.9%
Diluted earnings
per share $ 1.39 $ 0.61 $ 0.78 127.9%
----------------------------------------------------------------------------
STATISTICS:
Gross profit rate 16.7% 16.3% 0.4 pts.
Selling, general
and
administrative
expenses:
% of revenue 15.5 15.9 (0.4)
% of gross
profit 92.8 97.6 (4.8)
% Return:
Earnings from
operations 1.2 0.4 0.8
Earnings before
taxes 1.1 0.3 0.8
Net earnings 1.0 0.4 0.6
Effective income
tax rate 13.9% (43.2)% 57.1 pts.
Average number of
shares
outstanding
(millions):
Basic 37.8 37.5
Diluted 37.9 37.5
Shares adjusted
for nonvested
restricted
awards
(millions):
Basic 38.8 38.6
Diluted 38.9 38.6
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
-------------------------------------------------
2015 2014 % CC %
(14 Wks) (13 Wks) Change Change
---------- ---------- --------- ----------
AMERICAS
Commercial
Revenue from services $ 696.1 $ 694.5 0.2% 2.7%
Staffing fee-based
income included in
revenue from
services 3.7 4.0 (5.5) (3.2)
Gross profit 110.0 99.6 10.3 12.5
Gross profit rate 15.8 14.4% 1.4 pts.
PT
Revenue from services $ 250.1 $ 232.9 7.4% 7.8%
Staffing fee-based
income included in
revenue from
services 4.5 3.9 17.0 18.7
Gross profit 43.0 37.5 14.5 15.0
Gross profit rate 17.2% 16.1% 1.1 pts.
Total Americas
Revenue from services $ 946.2 $ 927.4 2.0% 4.0%
Staffing fee-based
income included in
revenue from
services 8.2 7.9 5.6 7.7
Gross profit 153.0 137.1 11.4 13.2
Total SG&A expenses 116.8 113.9 2.5 4.4
Earnings from
operations 36.2 23.2 55.2
Gross profit rate 16.2% 14.8% 1.4 pts.
Expense rates:
% of revenue 12.3 12.3 -
% of gross profit 76.3 83.0 (6.7)
Return on sales 3.8 2.5 1.3
EMEA
Commercial
Revenue from services $ 200.5 $ 204.5 (2.0)% 10.8%
Staffing fee-based
income included in
revenue from
services 3.3 3.3 (0.8) 15.8
Gross profit 27.5 29.6 (6.9) 5.7
Gross profit rate 13.7% 14.4% (0.7) pts.
PT
Revenue from services $ 44.7 $ 44.8 (0.3)% 12.3%
Staffing fee-based
income included in
revenue from
services 2.4 2.8 (17.9) (3.7)
Gross profit 9.4 9.6 (3.4) 10.3
Gross profit rate 21.0% 21.7% (0.7) pts.
Total EMEA
Revenue from services $ 245.2 $ 249.3 (1.7)% 11.1%
Staffing fee-based
income included in
revenue from
services 5.7 6.1 (8.6) 6.9
Gross profit 36.9 39.2 (6.1) 6.8
Total SG&A expenses 29.7 36.4 (18.4) (8.2)
Earnings from
operations 7.2 2.8 152.4
Gross profit rate 15.0% 15.7% (0.7) pts.
Expense rates:
% of revenue 12.1 14.6 (2.5)
% of gross profit 80.6 92.8 (12.2)
Return on sales 2.9 1.1 1.8
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Fourth Quarter
------------------------------------------------
2015 2014 % CC %
(14 Wks) (13 Wks) Change Change
--------- --------- ---------
APAC
Commercial
Revenue from services $ 88.1 $ 91.3 (3.5)% 11.3%
Staffing fee-based
income included in
revenue from services 1.3 2.0 (34.0) (26.1)
Gross profit 10.4 11.8 (12.1) 1.0
Gross profit rate 11.8% 12.9% (1.1) pts.
PT
Revenue from services $ 9.8 $ 11.2 (12.7)% 0.6
Staffing fee-based
income included in
revenue from services 1.2 2.0 (38.0) (27.5)
Gross profit 2.4 3.3 (28.7) (17.4)
Gross profit rate 24.5% 29.9% (5.4) pts.
Total APAC
Revenue from services $ 97.9 $ 102.5 (4.5)% 10.1
Staffing fee-based
income included in
revenue from services 2.5 4.0 (36.0) (26.8)
Gross profit 12.8 15.1 (15.7) (3.1)
Total SG&A expenses 11.2 13.1 (13.8) (1.4)
Earnings from
operations 1.6 2.0 (27.5)
Gross profit rate 13.0% 14.8% (1.8) pts.
Expense rates:
% of revenue 11.4 12.7 (1.3)
% of gross profit 87.8 85.8 2.0
Return on sales 1.6 2.1 (0.5)
OCG
Revenue from services $ 187.5 $ 164.7 13.8% 15.6
Gross profit 48.0 42.3 13.8 16.1
Total SG&A expenses 34.0 32.6 4.0 6.4
Earnings from
operations 14.0 9.7 47.1
Gross profit rate 25.6% 25.6% -- pts.
Expense rates:
% of revenue 18.1 19.8 (1.7)
% of gross profit 70.7 77.4 (6.7)
Return on sales 7.5 5.8 1.7
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
-----------------------------------------------
2015 2014 % CC %
(53 Wks) (52 Wks) Change Change
--------- --------- --------- ---------
AMERICAS
Commercial
Revenue from services $ 2,604.3 $ 2,609.6 (0.2)% 2.0
Staffing fee-based
income included in
revenue from services 14.5 14.4 1.0 3.5
Gross profit 400.3 379.6 5.4 7.4
Gross profit rate 15.4% 14.5% 0.9 pts.
PT
Revenue from services $ 971.9 $ 956.0 1.7% 2.1
Staffing fee-based
income included in
revenue from services 17.6 15.6 13.0 14.1
Gross profit 165.0 155.9 5.9 6.3
Gross profit rate 17.0% 16.3% 0.7 pts.
Total Americas
Revenue from services $ 3,576.2 $ 3,565.6 0.3% 2.0
Staffing fee-based
income included in
revenue from services 32.1 30.0 7.2 9.0
Gross profit 565.3 535.5 5.5 7.1
Total SG&A expenses 456.6 446.8 2.2 3.7
Earnings from
operations 108.7 88.7 22.7
Gross profit rate 15.8% 15.0% 0.8 pts.
Expense rates:
% of revenue 12.8 12.5 0.3
% of gross profit 80.8 83.5 (2.7)
Return on sales 3.0 2.5 0.5
EMEA
Commercial
Revenue from services $ 773.5 $ 894.7 (13.6)% 2.7
Staffing fee-based
income included in
revenue from services 13.2 17.3 (23.7) (5.8)
Gross profit 106.6 130.6 (18.4) (2.9)
Gross profit rate 13.8% 14.6% (0.8) pts.
PT
Revenue from services $ 171.5 $ 190.3 (9.8)% 6.5
Staffing fee-based
income included in
revenue from services 10.1 13.5 (25.7) (8.8)
Gross profit 36.6 42.9 (14.8) 2.0
Gross profit rate 21.3% 22.6% (1.3) pts.
Total EMEA
Revenue from services $ 945.0 $ 1,085.0 (12.9)% 3.4
Staffing fee-based
income included in
revenue from services 23.3 30.8 (24.5) (7.1)
Gross profit 143.2 173.5 (17.5) (1.7)
SG&A expenses
excluding
restructuring charges 129.2 160.6 (19.6) (5.0)
Restructuring charges - 0.8 (100.0) -
Total SG&A expenses 129.2 161.4 (20.0) (5.5)
Earnings from
operations 14.0 12.1 16.1
Earnings from
operations excluding
restructuring charges 14.0 12.9 8.8
Gross profit rate 15.2% 16.0% (0.8) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 13.7 14.8 (1.1)
% of gross profit 90.2 92.5 (2.3)
Return on sales
(excluding
restructuring
charges) 1.5 1.2 0.3
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
December Year to Date
--------------------------------------------------
2015 2014 % CC %
(53 Wks) (52 Wks) Change Change
--------- --------- --------- ---------
APAC
Commercial
Revenue from services $ 347.2 $ 351.8 (1.3)% 12.6
Staffing fee-based
income included in
revenue from services 6.0 7.9 (23.8) (14.7)
Gross profit 45.3 47.5 (4.6) 8.3
Gross profit rate 13.0% 13.5% (0.5) pts.
PT
Revenue from services $ 40.5 $ 40.4 0.4% 14.9
Staffing fee-based
income included in
revenue from services 5.6 7.8 (27.3) (17.9)
Gross profit 10.5 12.7 (17.6) (6.3)
Gross profit rate 26.0% 31.6% (5.6) pts.
Total APAC
Revenue from services $ 387.7 $ 392.2 (1.1)% 12.9
Staffing fee-based
income included in
revenue from services 11.6 15.7 (25.5) (16.3)
Gross profit 55.8 60.2 (7.4) 5.2
SG&A expenses
excluding
restructuring charges 46.7 56.4 (17.0) (5.9)
Restructuring charges - 1.3 (100.0) -
Total SG&A expenses 46.7 57.7 (19.0) (8.1)
Earnings from
operations 9.1 2.5 261.6
Earnings from
operations excluding
restructuring charges 9.1 3.8 134.2
Gross profit rate 14.4% 15.4% (1.0) pts.
Expense rates
(excluding
restructuring
charges):
% of revenue 12.1 14.4 (2.3)
% of gross profit 83.9 93.6 (9.7)
Return on sales
(excluding
restructuring
charges) 2.3 1.0 1.3
OCG
Revenue from services $ 673.8 $ 586.8 14.8% 16.6
Gross profit 160.6 143.6 11.9 14.2
Total SG&A expenses 132.1 127.3 3.7 6.4
Earnings from
operations 28.5 16.3 75.8
Gross profit rate 23.8% 24.5% (0.7) pts.
Expense rates:
% of revenue 19.6 21.7 (2.1)
% of gross profit 82.2 88.7 (6.5)
Return on sales 4.2 2.8 1.4
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
January 3, Dec. 28,
2016 2014
---------- ----------
Current Assets
Cash and equivalents $ 42.2 $ 83.1
Trade accounts receivable, less allowances of 1,139.1 1,122.8
$10.5 and $10.7, respectively
Prepaid expenses and other current assets 45.8 47.9
Deferred taxes - 34.4
---------- ----------
Total current assets 1,227.1 1,288.2
Property and Equipment, Net 88.9 93.0
Noncurrent Deferred Taxes 189.3 146.3
Goodwill, Net 90.3 90.3
Other Assets 344.0 300.1
---------- ----------
Total Assets $ 1,939.6 $ 1,917.9
========== ==========
Current Liabilities
Short-term borrowings $ 55.5 $ 91.9
Accounts payable and accrued liabilities 405.5 364.0
Accrued payroll and related taxes 268.1 308.5
Accrued insurance 26.7 26.9
Income and other taxes 60.0 68.8
---------- ----------
Total current liabilities 815.8 860.1
Noncurrent Liabilities
Accrued insurance 40.0 43.9
Accrued retirement benefits 141.0 140.8
Other long-term liabilities 47.4 39.4
---------- ----------
Total noncurrent liabilities 228.4 224.1
Stockholders' Equity
Common stock 40.1 40.1
Treasury stock (44.3) (49.8)
Paid-in capital 25.4 24.9
Earnings invested in the business 813.5 767.4
Accumulated other comprehensive income 60.7 51.1
---------- ----------
Total stockholders' equity 895.4 833.7
---------- ----------
Total Liabilities and Stockholders' Equity $ 1,939.6 $ 1,917.9
========== ==========
---------------------------------------------------------------------------
STATISTICS:
Working Capital $ 411.3 $ 428.1
Current Ratio 1.5 1.5
Debt-to-capital % 5.8% 9.9%
Global Days Sales Outstanding 54 54
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars)
2015 2014
---------- ----------
Cash flows from operating activities:
Net earnings $ 53.8 $ 23.7
Noncash adjustments:
Depreciation and amortization 22.3 21.7
Provision for bad debts 3.7 5.3
Stock-based compensation 6.1 5.3
Other, net (4.7) (2.2)
Changes in operating assets and liabilities (57.7) (123.8)
---------- ----------
Net cash from (used in) operating activities 23.5 (70.0)
---------- ----------
Cash flows from investing activities:
Capital expenditures (16.9) (21.7)
Investment in equity affiliate (0.5) (5.7)
Other investing activities (0.2) 0.2
---------- ----------
Net cash used in investing activities (17.6) (27.2)
---------- ----------
Cash flows from financing activities:
Net change in short-term borrowings (34.7) 63.9
Dividend payments (7.7) (7.6)
Other financing activities 0.2 0.3
---------- ----------
Net cash (used in) from financing activities (42.2) 56.6
---------- ----------
Effect of exchange rates on cash and equivalents (4.6) (2.0)
---------- ----------
Net change in cash and equivalents (40.9) (42.6)
Cash and equivalents at beginning of period 83.1 125.7
---------- ----------
Cash and equivalents at end of period $ 42.2 $ 83.1
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Fourth Quarter (Commercial, PT and OCG)
---------------------------------------------
2015 2014 % CC %
(14 Wks) (13 Wks) Change Change
---------- ---------- ---------- ----------
Americas
United States $ 998.8 $ 933.9 6.9% 6.9%
Canada 38.0 50.0 (24.0) (11.0)
Mexico 35.3 36.7 (3.9) 16.3
Puerto Rico 24.7 26.6 (7.1) (7.1)
Brazil 8.7 13.9 (37.5) (1.7)
---------- ----------
Total Americas 1,105.5 1,061.1 4.2 6.0
EMEA
France 65.6 66.4 (1.1) 12.8
Switzerland 55.5 57.8 (4.0) (1.3)
Portugal 33.8 32.4 4.2 18.9
United Kingdom 26.7 23.2 15.1 20.3
Russia 18.2 20.9 (12.9) 22.2
Germany 16.2 16.8 (4.0) 9.5
Italy 14.5 13.9 3.9 18.7
Norway 9.7 11.9 (18.1) 2.1
Other 13.0 13.6 (4.4) 9.4
---------- ----------
Total EMEA 253.2 256.9 (1.4) 11.3
APAC
Singapore 33.0 32.7 0.7 9.5
Australia 31.1 32.6 (4.6) 13.5
Malaysia 14.1 16.2 (12.7) 11.4
New Zealand 11.2 13.2 (14.5) 0.4
Other 13.5 12.3 9.2 19.5
---------- ----------
Total APAC 102.9 107.0 (3.8) 11.0
Total Kelly Services, Inc. $ 1,461.6 $ 1,425.0 2.6% 7.3%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
December Year to Date (Commercial, PT and OCG)
----------------------------------------------
2015 2014 % CC %
(53 Wks) (52 Wks) Change Change
---------- ---------- ---------- ----------
Americas
United States $ 3,705.2 $ 3,535.8 4.8% 4.8%
Canada 160.2 198.2 (19.2) (6.9)
Mexico 130.5 139.0 (6.1) 11.9
Puerto Rico 99.9 105.0 (4.8) (4.8)
Brazil 42.9 57.1 (24.9) 1.7
---------- ----------
Total Americas 4,138.7 4,035.1 2.6 4.2
EMEA
France 246.0 268.6 (8.4) 9.4
Switzerland 216.2 253.5 (14.7) (10.3)
Portugal 132.5 124.8 6.2 27.0
United Kingdom 105.1 105.6 (0.4) 7.3
Russia 75.6 117.3 (35.5) 3.2
Germany 59.3 67.5 (12.3) 4.7
Italy 54.0 60.2 (10.3) 7.1
Norway 39.2 55.5 (29.5) (9.6)
Other 45.8 64.5 (29.0) (15.2)
---------- ----------
Total EMEA 973.7 1,117.5 (12.9) 3.3
APAC
Singapore 129.9 127.5 1.9 10.5
Australia 123.2 121.4 1.5 21.8
Malaysia 59.5 66.2 (10.1) 6.7
New Zealand 41.4 51.4 (19.4) (4.4)
Other 51.8 43.6 18.6 26.9
---------- ----------
Total APAC 405.8 410.1 (1.0) 13.1
Total Kelly Services, Inc. $ 5,518.2 $ 5,562.7 (0.8)% 4.7%
========== ==========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 14 WEEKS ENDED JANUARY 3, 2016 AND 13 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
2015 2014
----------- -------------
Adjusted
As reported Earnings % Change
----------- ------------- -----------
Revenue from services $ 1,461.6 $ 1,425.0 2.6%
Cost of services 1,212.1 1,192.4 1.7
----------- ------------- -----------
Gross profit 249.5 232.6 7.2
SG&A expenses 223.0 223.8 (0.4)
----------- ------------- -----------
Earnings from operations 26.5 8.8 196.7
Other expense, net 0.7 1.1 (40.9)
----------- ------------- -----------
Earnings before taxes 25.8 7.7 229.2
Inc. tax (benefit) expense* (8.4) (13.1) 36.2
----------- ------------- -----------
Net earnings $ 34.2 $ 20.8 63.1%
=========== ============= ===========
Earnings per share:
Basic $ 0.88 $ 0.54 63.0%
Diluted $ 0.88 $ 0.54 63.0%
* Income tax benefit for the fourth quarters of 2015 and 2014 includes
$13.9 million and $13.6 million, respectively, related to the retroactive
reinstatement of work opportunity credits for the entire year.
2014
----------------------------------------
Restructuring
Charges Adjusted
As reported (Note 1) Earnings
----------- ------------- -----------
Revenue from services $ 1,425.0 $ - $ 1,425.0
Cost of services 1,192.4 - 1,192.4
----------- ------------- -----------
Gross profit 232.6 - 232.6
SG&A expenses 230.0 (6.2) 223.8
----------- ------------- -----------
Earnings from operations 2.6 6.2 8.8
Other expense, net 1.1 - 1.1
----------- ------------- -----------
Earnings before taxes 1.5 6.2 7.7
Inc. tax (benefit) expense (15.5) 2.4 (13.1)
----------- ------------- -----------
Net earnings $ 17.0 $ 3.8 $ 20.8
=========== ============= ===========
Earnings per share:
Basic $ 0.44 $ 0.10 $ 0.54
Diluted $ 0.44 $ 0.10 $ 0.54
Note: Earnings per share amounts for each quarter are required to be
computed independently and may not equal the amounts computed for the
total year.
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 53 WEEKS ENDED JANUARY 3, 2016 AND 52 WEEKS ENDED DECEMBER 28, 2014
(UNAUDITED)
(In millions of dollars except per share data)
2015 2014
----------- -------------
Adjusted
As reported Earnings % Change
----------- ------------- -----------
Revenue from services $ 5,518.2 $ 5,562.7 (0.8)%
Cost of services 4,597.9 4,654.3 (1.2)
Gross profit 920.3 908.4 1.3
SGA expenses 853.6 874.5 (2.4)
Earnings from operations 66.7 33.9 97.2
Other expense, net 4.2 5.3 (19.9)
Earnings before taxes 62.5 28.6 118.6
Inc. tax expense (benefit) 8.7 (2.6) 432.2
Net earnings $ 53.8 $ 31.2 72.4%
Earnings per share:
Basic $ 1.39 $ 0.81 71.6%
Diluted $ 1.39 $ 0.81 71.6%
2014
---------------------------------------
Restructuring
Charges Adjusted
As reported (Note 1) Earnings
----------- ------------- -----------
Revenue from services $ 5,562.7 $ - $ 5,562.7
Cost of services 4,654.3 - 4,654.3
Gross profit 908.4 - 908.4
SG&A expenses 886.5 (12.0) 874.5
Earnings from operations 21.9 12.0 33.9
Other expense, net 5.3 - 5.3
Earnings before taxes 16.6 12.0 28.6
Inc. tax (benefit) expense (7.1) 4.5 (2.6)
Net earnings $ 23.7 $ 7.5 $ 31.2
Earnings per share:
Basic $ 0.61 $ 0.19 $ 0.81
Diluted $ 0.61 $ 0.19 $ 0.81
Note: Earnings per share amounts for each quarter are required to be
computed independently and may not equal the amounts computed for the total
year.
KELLY SERIVCES, 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 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) Restructuring charges in 2014 includes costs related to the U.S. management simplification restructuring plan, costs incurred for exiting the staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand.
ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com
MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
