Kelly Services(R) Reports Second Quarter 2016 Earnings and Announces Quarterly Dividend
/EINPresswire.com/ -- TROY, MI--(Marketwired - August 10, 2016) -
Second Quarter Highlights
- Total Revenue declines 0.7% (up 0.6% in constant currency)
- Gross Profit up 3.7% (up 4.8% in constant currency); Gross Profit Rate up 70 basis points
- Earnings per share of $0.23 (Adjusted EPS of $0.29) versus $0.18, a 28% increase
- TS Kelly Asia Pacific Joint Venture completed, forming one of the region's largest workforce solutions providers
Kelly Services (NASDAQ: KELYA) (NASDAQ: KELYB), a global leader in providing workforce solutions, today announced results for the second quarter of 2016.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2016 totaled $1.4 billion, a 0.7% decrease (a 0.6% increase on a constant currency basis) compared to the corresponding quarter of 2015.
Earnings from operations for the second quarter of 2016 totaled $9.9 million, compared to $11.5 million reported for the second quarter of 2015. Included in the results of operations in the second quarter of 2016 are restructuring charges of $3.4 million. Excluding the restructuring charges, earnings from operations were $13.3 million in the second quarter of 2016.
Diluted earnings per share in the second quarter of 2016 were $0.23 compared to $0.18 per share in the second quarter of 2015. Excluding restructuring charges, earnings per share were $0.29 in the second quarter of 2016.
Commenting on the second quarter, Camden stated, "We are pleased with Kelly's ability to deliver strategic growth, improve Gross Profit, and increase shareholder value in the second quarter. The finalization of our Joint Venture in APAC positions us for growth in staffing-related services while enabling us to accelerate investments in OCG, which remains a Kelly-owned entity." Referring to the apparent slow-down in U.S. staffing demand facing the workforce solutions industry in the second quarter, Camden commented, "Kelly responded quickly to flat top-line growth in the Americas by managing Gross Profit, adjusting our operating costs, and delivering solid leverage. We remain committed to increasing shareholder value by efficiently delivering the best workforce solutions for our customers around the world."
Kelly also reported that on August 9, its board of directors declared a dividend of $0.075 per share. The dividend is payable September 2, 2016 to shareholders of record as of the close of business on August 23, 2016.
In conjunction with its second quarter earnings release, Kelly Services has published a financial presentation on the Investor Relations page of our public website and will host a conference call at 9:00 a.m. (ET) on August 10 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. In 2016, the Company is commemorating 70 years of industry leadership. Kelly® has a role in managing employment opportunities for more than one million workers around the globe by employing 550,000 of these individuals directly with the remaining workers engaged through its talent supply chain network of supplier partners. Revenue in 2015 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.
KLYA-FIN
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JULY 3, 2016 AND JUNE 28, 2015
(UNAUDITED)
(In millions of dollars except per share data)
% CC %
2016 2015 Change Change Change
------- ------- ------ ------ -------
Revenue from services $1,375.5 $ 1,385.0 $ (9.5) (0.7)% 0.6 %
Cost of services 1,145.0 1,162.7 (17.7) (1.5)
------- ------- ------
Gross profit 230.5 222.3 8.2 3.7 4.8
Selling, general and
administrative expenses 220.6 210.8 9.8 4.6 5.7
------- ------- ------
Earnings from operations 9.9 11.5 (1.6) (13.9)
Other expense, net 0.2 1.0 (0.8) (74.8)
------- ------- ------
Earnings before taxes 9.7 10.5 (0.8) (8.2)
Income tax expense 0.8 3.7 (2.9) (78.5)
------- ------- ------
Net earnings $ 8.9 $ 6.8 $ 2.1 30.2 %
======= ======= ======
Basic earnings per share $ 0.23 $ 0.18 $ 0.05 27.8 %
Diluted earnings per
share $ 0.23 $ 0.18 $ 0.05 27.8 %
----------------------------------------------------------------------------
STATISTICS:
Gross profit rate 16.8 % 16.1 % 0.7 pts.
Selling, general and
administrative expenses:
% of revenue 16.0 15.2 0.8
% of gross profit 95.7 94.8 0.9
% Return:
Earnings from
operations 0.7 0.8 (0.1)
Earnings before taxes 0.7 0.8 (0.1)
Net earnings 0.6 0.5 0.1
Effective income tax rate 8.3 % 35.3 % (27.0) pts.
Average number of shares
outstanding (millions):
Basic 38.0 37.7
Diluted 38.3 37.8
Shares adjusted for
nonvested restricted
awards (millions):
Basic 39.0 38.8
Diluted 39.2 38.8
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JULY 3, 2016 AND JUNE 28, 2015
(UNAUDITED)
(In millions of dollars except per share data)
% CC %
2016 2015 Change Change Change
------- ------- ------ ------ ------
Revenue from services $2,724.6 $ 2,705.6 $ 19.0 0.7 % 2.5 %
Cost of services 2,261.4 2,263.0 (1.6) (0.1)
------- ------- ------
Gross profit 463.2 442.6 20.6 4.6 6.2
Selling, general and
administrative expenses 438.6 419.0 19.6 4.7 6.2
------- ------- ------
Earnings from operations 24.6 23.6 1.0 4.2
Other expense, net 1.0 3.5 (2.5) (70.9)
------- ------- ------
Earnings before taxes 23.6 20.1 3.5 17.2
Income tax expense 3.5 9.6 (6.1) (63.4)
------- ------- ------
Net earnings $ 20.1 $ 10.5 $ 9.6 90.5 %
======= ======= ======
Basic earnings per share $ 0.52 $ 0.27 $ 0.25 92.6 %
Diluted earnings per share $ 0.51 $ 0.27 $ 0.24 88.9 %
----------------------------------------------------------------------------
STATISTICS:
Gross profit rate 17.0 % 16.4 % 0.6 pts.
Selling, general and
administrative expenses:
% of revenue 16.1 15.5 0.6
% of gross profit 94.7 94.7 -
% Return:
Earnings from operations 0.9 0.9 -
Earnings before taxes 0.9 0.7 0.2
Net earnings 0.7 0.4 0.3
Effective income tax rate 14.9 % 47.6 % (32.7) pts.
Average number of shares
outstanding (millions):
Basic 38.0 37.7
Diluted 38.2 37.8
Shares adjusted for
nonvested restricted
awards (millions):
Basic 39.0 38.8
Diluted 39.2 38.8
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Second Quarter
-------------------------------------
% CC %
2016 2015 Change Change
----- ----- ------ -------
AMERICAS
-------------------------------------
Commercial
Revenue from services $635.3 $651.3 (2.5)% (1.3)%
Staffing fee-based income
included in revenue from
services 3.6 3.5 2.9 3.7
Gross profit 98.9 95.9 3.2 4.2
Gross profit rate 15.6 % 14.7 % 0.9 pts.
PT
Revenue from services $241.6 $246.2 (1.9)% (1.7)%
Staffing fee-based income
included in revenue from
services 4.3 4.9 (11.1) (10.8)
Gross profit 41.3 42.1 (2.0) (1.9)
Gross profit rate 17.1 % 17.1 % - pts.
Total Americas
Revenue from services $876.9 $897.5 (2.3)% (1.4)%
Staffing fee-based income
included in revenue from
services 7.9 8.4 (5.2) (4.7)
Gross profit 140.2 138.0 1.6 2.3
SG&A expenses excluding
restructuring charges 111.7 112.6 (0.8) (0.2)
Restructuring charges 2.2 - NM
Total SG&A expenses 113.9 112.6 1.2 1.8
Earnings from operations 26.3 25.4 3.6
Earnings from operations
excluding restructuring charges 28.5 25.4 12.2
Gross profit rate 16.0 % 15.4 % 0.6 pts.
Expense rates (excluding
restructuring charges):
% of revenue 12.7 12.5 0.2
% of gross profit 79.6 81.6 (2.0)
Return on sales (excluding
restructuring charges) 3.3 2.8 0.5
EMEA
-------------------------------------
Commercial
Revenue from services $197.1 $195.7 0.8 % 3.0 %
Staffing fee-based income
included in revenue from
services 3.7 3.2 16.6 21.4
Gross profit 27.1 26.8 1.5 3.4
Gross profit rate 13.8 % 13.7 % 0.1 pts.
PT
Revenue from services $ 43.1 $ 42.9 0.5 % 2.2 %
Staffing fee-based income
included in revenue from
services 2.5 2.5 (4.4) (1.0)
Gross profit 8.7 9.1 (5.5) (3.6)
Gross profit rate 20.0 % 21.2 % (1.2)pts.
Total EMEA
Revenue from services $240.2 $238.6 0.7 % 2.8 %
Staffing fee-based income
included in revenue from
services 6.2 5.7 7.4 11.6
Gross profit 35.8 35.9 (0.3) 1.6
SG&A expenses excluding
restructuring charges 32.0 34.2 (6.3) (3.9)
Restructuring charges 1.2 - NM
Total SG&A expenses 33.2 34.2 (3.0) (0.6)
Earnings from operations 2.6 1.7 54.4
Earnings from operations
excluding restructuring charges 3.8 1.7 121.7
Gross profit rate 14.9 % 15.0 % (0.1)pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.3 14.3 (1.0)
% of gross profit 89.6 95.3 (5.7)
Return on sales (excluding
restructuring charges) 1.5 0.7 0.8
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
Second Quarter
-------------------------------------
% CC %
2016 2015 Change Change
----- ----- ------ -------
APAC
---------------------------------------
Commercial
Revenue from services $ 87.9 $ 90.3 (2.6)% 1.6 %
Staffing fee-based income
included in revenue from
services 1.7 1.8 (7.1) (3.5)
Gross profit 10.3 11.2 (8.6) (4.7)
Gross profit rate 11.7 % 12.4 % (0.7)pts.
PT
Revenue from services $ 9.2 $ 10.3 (11.4)% (7.8)%
Staffing fee-based income
included in revenue from
services 1.4 1.5 (6.1) (1.1)
Gross profit 2.5 2.7 (7.8) (3.6)
Gross profit rate 27.4 % 26.4 % 1.0 pts.
Total APAC
Revenue from services $ 97.1 $100.6 (3.5)% 0.6 %
Staffing fee-based income
included in revenue from
services 3.1 3.3 (6.6) (2.4)
Gross profit 12.8 13.9 (8.4) (4.5)
Total SG&A expenses 11.6 12.3 (5.4) (1.5)
Earnings from operations 1.2 1.6 (31.4)
Gross profit rate 13.2 % 13.9 % (0.7)pts.
Expense rates:
% of revenue 12.0 12.2 (0.2)
% of gross profit 91.2 88.3 2.9
Return on sales 1.2 1.6 (0.4)
OCG
---------------------------------------
Revenue from services $173.9 $165.0 5.4 % 5.9 %
Gross profit 42.8 35.7 20.1 20.9
Total SG&A expenses 38.0 32.2 18.1 19.0
Earnings from operations 4.8 3.5 38.2
Gross profit rate 24.6 % 21.6 % 3.0 pts.
Expense rates:
% of revenue 21.8 19.5 2.3
% of gross profit 88.7 90.2 (1.5)
Return on sales 2.8 2.1 0.7
Corporate
---------------------------------------
Total SG&A expenses $ 25.0 $ 20.7 20.5 %
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
June Year to Date
-----------------------------------------
% CC %
2016 2015 Change Change
------- ------- ------ -------
AMERICAS
---------------------------------
Commercial
Revenue from services $1,283.9 $1,292.7 (0.7)% 0.9 %
Staffing fee-based income
included in revenue from
services 7.2 7.0 3.0 4.0
Gross profit 201.0 193.7 3.8 5.1
Gross profit rate 15.7 % 15.0 % 0.7 pts.
PT
Revenue from services $ 478.7 $ 479.0 (0.1)% 0.1 %
Staffing fee-based income
included in revenue from
services 9.3 8.4 10.9 12.1
Gross profit 82.9 81.0 2.3 2.5
Gross profit rate 17.3 % 16.9 % 0.4 pts.
Total Americas
Revenue from services $1,762.6 $1,771.7 (0.5)% 0.7 %
Staffing fee-based income
included in revenue from
services 16.5 15.4 7.3 8.4
Gross profit 283.9 274.7 3.3 4.3
SG&A expenses excluding
restructuring charges 228.3 226.1 1.0 1.9
Restructuring charges 2.2 - NM
Total SG&A expenses 230.5 226.1 1.9 2.9
Earnings from operations 53.4 48.6 9.9
Earnings from operations
excluding restructuring
charges 55.6 48.6 14.4
Gross profit rate 16.1 % 15.5 % 0.6 pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.0 12.8 0.2
% of gross profit 80.4 82.3 (1.9)
Return on sales (excluding
restructuring charges) 3.2 2.7 0.5
EMEA
---------------------------------
Commercial
Revenue from services $ 372.6 $ 374.0 (0.4)% 2.9 %
Staffing fee-based income
included in revenue from
services 7.1 6.7 6.5 11.5
Gross profit 50.7 51.4 (1.3) 1.7
Gross profit rate 13.6 % 13.7 % (0.1)pts.
PT
Revenue from services $ 84.7 $ 83.2 1.8 % 4.7 %
Staffing fee-based income
included in revenue from
services 5.1 5.1 (0.5) 4.3
Gross profit 17.4 17.8 (2.4) 0.8
Gross profit rate 20.5 % 21.4 % (0.9)pts.
Total EMEA
Revenue from services $ 457.3 $ 457.2 - % 3.3 %
Staffing fee-based income
included in revenue from
services 12.2 11.8 3.5 8.4
Gross profit 68.1 69.2 (1.6) 1.5
SG&A expenses excluding
restructuring charges 62.3 67.7 (7.8) (4.7)
Restructuring charges 1.2 - NM
Total SG&A expenses 63.5 67.7 (6.2) (3.0)
Earnings from operations 4.6 1.5 205.2
Earnings from operations
excluding restructuring
charges 5.8 1.5 280.2
Gross profit rate 14.9 % 15.1 % (0.2)pts.
Expense rates (excluding
restructuring charges):
% of revenue 13.6 14.8 (1.2)
% of gross profit 91.6 97.8 (6.2)
Return on sales (excluding
restructuring charges) 1.2 0.3 0.9
KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
June Year to Date
---------------------------------------
% CC %
2016 2015 Change Change
------- ------- ------ -------
APAC
-------------------------------------
Commercial
Revenue from services $170.7 $175.9 (2.9)% 3.1 %
Staffing fee-based income
included in revenue from
services 2.9 3.3 (12.1) (7.1)
Gross profit 23.3 24.2 (3.7) 1.2
Gross profit rate 13.7 % 13.8 % (0.1)pts.
PT
Revenue from services $ 18.3 $ 20.8 (12.2)% (7.0)%
Staffing fee-based income
included in revenue from
services 2.8 3.1 (9.7) (3.3)
Gross profit 5.0 5.6 (10.7) (4.9)
Gross profit rate 27.4 % 26.9 % 0.5 pts.
Total APAC
Revenue from services $189.0 $196.7 (3.9)% 2.1 %
Staffing fee-based income
included in revenue from
services 5.7 6.4 (10.9) (5.2)
Gross profit 28.3 29.8 (5.0) 0.1
Total SG&A expenses 22.7 24.4 (7.0) (1.4)
Earnings from operations 5.6 5.4 3.8
Gross profit rate 15.0 % 15.2 % (0.2)pts.
Expense rates:
% of revenue 12.0 12.4 (0.4)
% of gross profit 80.3 82.0 (1.7)
Return on sales 3.0 2.7 0.3
OCG
-------------------------------------
Revenue from services $342.1 $314.5 8.8 % 9.5 %
Gross profit 85.1 71.2 19.6 20.6
Total SG&A expenses 74.9 64.9 15.5 16.7
Earnings from operations 10.2 6.3 61.3
Gross profit rate 24.9 % 22.6 % 2.3 pts.
Expense rates:
% of revenue 21.9 20.6 1.3
% of gross profit 88.0 91.1 (3.1)
Return on sales 3.0 2.0 1.0
Corporate
-------------------------------------
Total SG&A expenses $ 49.2 $ 38.2 28.8 %
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
July 3, 2016 Jan. 3, 2016 June 28, 2015
------------- --------------- --------------
Current Assets
Cash and equivalents $ 33.3 $ 42.2 $ 48.7
Trade accounts receivable,
less allowances of
$11.0, $10.5 and $9.4,
respectively 1,079.8 1,139.1 1,152.3
Prepaid expenses and other
current assets 47.8 45.8 50.6
Deferred taxes - - 35.8
Current assets held for
sale 94.0 - -
------------- --------------- --------------
Total current assets 1,254.9 1,227.1 1,287.4
Noncurrent Assets
Property and equipment,
net 81.5 88.9 88.6
Noncurrent deferred taxes 197.0 189.3 144.6
Goodwill, net 88.3 90.3 90.3
Other assets 368.4 344.0 321.7
------------- --------------- --------------
Total noncurrent assets 735.2 712.5 645.2
Total Assets $ 1,990.1 $ 1,939.6 $ 1,932.6
============= =============== ==============
Current Liabilities
Short-term borrowings $ 26.9 $ 55.5 $ 89.9
Accounts payable and
accrued liabilities 403.7 405.5 380.4
Accrued payroll and
related taxes 259.2 268.1 296.5
Accrued insurance 27.1 26.7 27.1
Income and other taxes 50.9 60.0 62.8
Current liabilities held
for sale 48.0 - -
------------- --------------- --------------
Total current liabilities 815.8 815.8 856.7
Noncurrent Liabilities
Accrued insurance 41.1 40.0 44.3
Accrued retirement
benefits 148.5 141.0 146.5
Other long-term
liabilities 50.6 47.4 40.6
------------- --------------- --------------
Total noncurrent
liabilities 240.2 228.4 231.4
Stockholders' Equity
Common stock 40.1 40.1 40.1
Treasury stock (42.1) (44.3) (49.0)
Paid-in capital 28.1 25.4 27.5
Earnings invested in the
business 828.8 813.5 774.1
Accumulated other
comprehensive income 79.2 60.7 51.8
------------- --------------- --------------
Total stockholders' equity 934.1 895.4 844.5
Total Liabilities and
Stockholders' Equity $ 1,990.1 $ 1,939.6 $ 1,932.6
============= =============== ==============
---------------------------- --------------- --------------- --------------
STATISTICS:
Working Capital (including
net assets held for sale) $ 439.1 $ 411.3 $ 430.7
Current Ratio 1.5 1.5 1.5
Debt-to-capital % 2.8 % 5.8 % 9.6 %
Global Days Sales
Outstanding 53 54 56
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JULY 3, 2016 AND JUNE 28, 2015
(UNAUDITED)
(In millions of dollars)
2016 2015
-------- --------
Cash flows from operating activities:
Net earnings $ 20.1 $ 10.5
Noncash adjustments:
Depreciation and amortization 10.9 11.0
Provision for bad debts 3.5 2.1
Stock-based compensation 4.5 3.1
Other, net (0.7) (0.3)
Changes in operating assets and liabilities 2.9 (52.9)
-------- --------
Net cash from (used in) operating activities 41.2 (26.5)
-------- --------
Cash flows from investing activities:
Capital expenditures (4.3) (6.7)
Investment in equity affiliate - (0.5)
Other investing activities (0.4) (0.1)
-------- --------
Net cash used in investing activities (4.7) (7.3)
-------- --------
Cash flows from financing activities:
Net change in short-term borrowings (29.1) (1.4)
Dividend payments (4.8) (3.8)
Other financing activities 0.2 -
-------- --------
Net cash used in financing activities (33.7) (5.2)
-------- --------
Effect of exchange rates on cash and equivalents 6.4 4.6
-------- --------
Net change in cash and equivalents 9.2 (34.4)
Less: cash balance included in current assets held for
sale (18.1) -
Cash and equivalents at beginning of period 42.2 83.1
-------- --------
Cash and equivalents at end of period $ 33.3 $ 48.7
======== ========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
Second Quarter (Commercial, PT and OCG)
-----------------------------------------
% CC %
2016 2015 Change Change
--------- --------- --------- ---------
Americas
United States $ 930.8 $ 923.6 0.8 % 0.8 %
Canada 35.8 41.6 (14.1) (10.6)
Mexico 25.4 32.0 (20.2) (5.5)
Puerto Rico 22.5 26.6 (15.3) (15.3)
Brazil 10.2 9.9 3.8 20.6
--------- ---------
Total Americas 1,024.7 1,033.7 (0.9) (0.1)
EMEA
France 61.3 60.9 0.7 (1.2)
Switzerland 54.6 54.6 (0.1) 3.0
Portugal 38.7 33.9 14.5 12.1
United Kingdom 23.1 27.1 (15.0) (9.2)
Russia 16.6 22.2 (25.3) (6.8)
Germany 15.7 14.3 9.2 7.0
Italy 15.1 13.0 16.0 13.9
Norway 8.4 10.0 (15.6) (10.0)
Other 14.8 10.3 44.3 42.2
--------- ---------
Total EMEA 248.3 246.3 0.8 2.9
APAC
Singapore 33.0 33.0 0.2 1.3
Australia 32.1 32.9 (2.3) 2.0
Malaysia 14.5 15.9 (9.6) (0.8)
New Zealand 9.5 10.3 (7.7) (1.9)
Other 13.4 12.9 3.7 8.6
--------- ---------
Total APAC 102.5 105.0 (2.4) 1.8
Total Kelly Services, Inc. $ 1,375.5 $ 1,385.0 (0.7)% 0.6 %
========= =========
KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
June Year to Date (Commercial, PT and OCG)
-------------------------------------------------
% CC %
2016 2015 Change Change
----------- ----------- ----------- -----------
Americas
United States $ 1,865.5 $ 1,806.6 3.3 % 3.3 %
Canada 70.3 84.3 (16.6) (10.6)
Mexico 52.0 63.9 (18.5) (2.6)
Puerto Rico 45.0 51.4 (12.5) (12.5)
Brazil 20.2 23.8 (14.9) 11.7
----------- -----------
Total Americas 2,053.0 2,030.0 1.1 2.2
EMEA
France 117.8 117.3 0.5 0.6
Switzerland 101.2 102.7 (1.5) 2.0
Portugal 72.4 65.2 11.1 11.2
United Kingdom 46.7 50.7 (8.1) (2.1)
Germany 31.1 27.7 12.1 12.3
Russia 30.6 40.4 (24.3) (7.8)
Italy 28.5 25.5 11.6 11.5
Norway 16.0 19.4 (17.1) (9.6)
Other 28.5 21.3 33.9 34.6
----------- -----------
Total EMEA 472.8 470.2 0.5 3.8
APAC
Singapore 64.8 64.3 0.8 2.9
Australia 60.6 63.3 (4.3) 2.0
Malaysia 27.7 31.4 (11.9) (0.9)
New Zealand 19.2 20.8 (7.8) 1.3
Other 26.5 25.6 3.6 10.7
----------- -----------
Total APAC 198.8 205.4 (3.2) 2.9
Total Kelly Services,
Inc. $ 2,724.6 $ 2,705.6 0.7 % 2.5 %
=========== ===========
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED JULY 3, 2016 AND JUNE 28, 2015
(UNAUDITED)
(In millions of dollars except per share data)
2016 2015
---------------------------------- --------
Restructuring
As Charges Adjusted Reported %
Reported (Note 1) Earnings Earnings Change
-------- -------------- -------- -------- -------
Revenue from services $ 1,375.5 $ - $ 1,375.5 $ 1,385.0 (0.7)%
Cost of services 1,145.0 - 1,145.0 1,162.7 (1.5)
-------- -------------- -------- -------- -------
Gross profit 230.5 - 230.5 222.3 3.7
SG&A expenses 220.6 (3.4) 217.2 210.8 3.0
-------- -------------- -------- -------- -------
Earnings from
operations 9.9 3.4 13.3 11.5 15.9
Other expense, net 0.2 - 0.2 1.0 (74.8)
-------- -------------- -------- -------- -------
Earnings before taxes 9.7 3.4 13.1 10.5 24.4
Inc. tax expense
(benefit) 0.8 0.9 1.7 3.7 (55.5)
-------- -------------- -------- -------- -------
Net earnings $ 8.9 $ 2.5 $ 11.4 $ 6.8 68.1 %
======== ============== ======== ======== =======
Earnings per share:
Basic $ 0.23 $ 0.07 $ 0.29 $ 0.18 61.1 %
Diluted $ 0.23 $ 0.07 $ 0.29 $ 0.18 61.1 %
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 26 WEEKS ENDED JULY 3, 2016 AND JUNE 28, 2015
(UNAUDITED)
(In millions of dollars except per share data)
2016 2015
---------------------------------- --------
Restructuring
As Charges Adjusted Reported %
Reported (Note 1) Earnings Earnings Change
-------- -------------- -------- -------- -------
Revenue from services $ 2,724.6 $ - $ 2,724.6 $ 2,705.6 0.7 %
Cost of services 2,261.4 - 2,261.4 2,263.0 (0.1)
-------- -------------- -------- -------- -------
Gross profit 463.2 - 463.2 442.6 4.6
SG&A expenses 438.6 (3.4) 435.2 419.0 3.8
-------- -------------- -------- -------- -------
Earnings from
operations 24.6 3.4 28.0 23.6 18.8
Other expense, net 1.0 - 1.0 3.5 (70.9)
-------- -------------- -------- -------- -------
Earnings before taxes 23.6 3.4 27.0 20.1 34.4
Inc. tax expense
(benefit) 3.5 0.9 4.4 9.6 (54.5)
-------- -------------- -------- -------- -------
Net earnings $ 20.1 $ 2.5 $ 22.6 $ 10.5 115.0 %
======== ============== ======== ======== =======
Earnings per share:
Basic $ 0.52 $ 0.07 $ 0.58 $ 0.27 114.8 %
Diluted $ 0.51 $ 0.07 $ 0.58 $ 0.27 114.8 %
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
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges is useful to understand the Company's fiscal 2016 financial performance and increases comparability. Specifically, Management believes that removing the impact of restructuring charges 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 2016 include costs related to actions during the second quarter in the Americas and EMEA designed to increase operational efficiency and align our staffing operations with opportunities for growth within their markets.
ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com
MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com
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