U.S. | 1 800 288-9626 |
International | 1 651 291-5254 |
ANALYST CONTACT: | MEDIA CONTACT: |
James Polehna | Jane Stehney |
(248) 244-4586 | (248) 244-5630 |
james_polehna@kellyservices.com | jane_stehney@kellyservices.com |
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
FOR THE 13 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013 | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars except per share data) | |||||||||||||
% | |||||||||||||
2014 | 2013 | Change | Change | ||||||||||
Revenue from services | $ | 1,396.4 | $ | 1,345.6 | $ | 50.8 | 3.8 | % | |||||
Cost of services | 1,171.0 | 1,125.2 | 45.8 | 4.1 | |||||||||
Gross profit | 225.4 | 220.4 | 5.0 | 2.2 | |||||||||
Selling, general and administrative expenses | 218.3 | 200.2 | 18.1 | 9.0 | |||||||||
Earnings from operations | 7.1 | 20.2 | (13.1 | ) | (65.1 | ) | |||||||
Other expense, net | 2.2 | 1.3 | 0.9 | (63.1 | ) | ||||||||
Earnings before taxes | 4.9 | 18.9 | (14.0 | ) | (74.4 | ) | |||||||
Income tax expense | 3.5 | 0.1 | 3.4 | NM | |||||||||
Net earnings | $ | 1.4 | $ | 18.8 | $ | (17.4 | ) | (93.0 | ) | % | |||
Basic earnings per share | $ | 0.03 | $ | 0.49 | $ | (0.46 | ) | (93.9 | ) | % | |||
Diluted earnings per share | $ | 0.03 | $ | 0.49 | $ | (0.46 | ) | (93.9 | ) | % | |||
STATISTICS: | |||||||||||||
Gross profit rate | 16.1 | % | 16.4 | % | (0.3 | ) | pts. | ||||||
Selling, general and administrative expenses: | |||||||||||||
% of revenue | 15.6 | 14.9 | 0.7 | ||||||||||
% of gross profit | 96.9 | 90.8 | 6.1 | ||||||||||
% Return: | |||||||||||||
Earnings from operations | 0.5 | 1.5 | (1.0 | ) | |||||||||
Earnings before taxes | 0.3 | 1.4 | (1.1 | ) | |||||||||
Net earnings | 0.1 | 1.4 | (1.3 | ) | |||||||||
Effective income tax rate | 72.7 | % | 0.3 | % | 72.4 | pts. | |||||||
Average number of shares outstanding | |||||||||||||
(millions): | |||||||||||||
Basic | 37.6 | 37.4 | |||||||||||
Diluted | 37.6 | 37.4 | |||||||||||
Shares adjusted for nonvested restricted awards | |||||||||||||
(millions): | |||||||||||||
Basic | 38.5 | 38.1 | |||||||||||
Diluted | 38.5 | 38.1 |
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
FOR THE 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013 | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars except per share data) | |||||||||||||
% | |||||||||||||
2014 | 2013 | Change | Change | ||||||||||
Revenue from services | $ | 4,137.7 | $ | 4,027.3 | $ | 110.4 | 2.7 | % | |||||
Cost of services | 3,461.9 | 3,369.3 | 92.6 | 2.8 | |||||||||
Gross profit | 675.8 | 658.0 | 17.8 | 2.7 | |||||||||
Selling, general and administrative expenses | 656.5 | 612.6 | 43.9 | 7.2 | |||||||||
Asset impairments | — | 1.7 | (1.7 | ) | (100.0 | ) | |||||||
Earnings from operations | 19.3 | 43.7 | (24.4 | ) | (56.4 | ) | |||||||
Other expense, net | 4.2 | 3.9 | 0.3 | (4.6 | ) | ||||||||
Earnings before taxes | 15.1 | 39.8 | (24.7 | ) | (62.5 | ) | |||||||
Income tax expense (benefit) | 8.4 | (1.9 | ) | 10.3 | NM | ||||||||
Net earnings | $ | 6.7 | $ | 41.7 | $ | (35.0 | ) | (84.2 | ) | % | |||
Basic earnings per share | $ | 0.17 | $ | 1.09 | $ | (0.92 | ) | (84.4 | ) | % | |||
Diluted earnings per share | $ | 0.17 | $ | 1.09 | $ | (0.92 | ) | (84.4 | ) | % | |||
STATISTICS: | |||||||||||||
Gross profit rate | 16.3 | % | 16.3 | % | — | pts. | |||||||
Selling, general and administrative expenses: | |||||||||||||
% of revenue | 15.9 | 15.2 | 0.7 | ||||||||||
% of gross profit | 97.2 | 93.1 | 4.1 | ||||||||||
% Return: | |||||||||||||
Earnings from operations | 0.5 | 1.1 | (0.6 | ) | |||||||||
Earnings before taxes | 0.4 | 1.0 | (0.6 | ) | |||||||||
Net earnings | 0.2 | 1.0 | (0.8 | ) | |||||||||
Effective income tax rate | 55.9 | % | (5.0 | ) | % | 60.9 | pts. | ||||||
Average number of shares outstanding | |||||||||||||
(millions): | |||||||||||||
Basic | 37.5 | 37.2 | |||||||||||
Diluted | 37.5 | 37.3 | |||||||||||
Shares adjusted for nonvested restricted awards | |||||||||||||
(millions): | |||||||||||||
Basic | 38.5 | 38.2 | |||||||||||
Diluted | 38.5 | 38.2 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
Third Quarter | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2014 | 2013 | Change | Change | |||||||||||
AMERICAS | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 640.8 | $ | 617.0 | 3.9 | % | 4.3 | % | ||||||
Staffing fee-based income included in revenue from services | 3.8 | 3.3 | 12.3 | 12.7 | ||||||||||
Gross profit | 91.7 | 86.8 | 5.7 | 6.1 | ||||||||||
Gross profit rate | 14.3 | % | 14.1 | % | 0.2 | pts. | ||||||||
PT | ||||||||||||||
Revenue from services | $ | 242.5 | $ | 239.9 | 1.1 | % | 1.2 | % | ||||||
Staffing fee-based income included in revenue from services | 4.4 | 3.9 | 13.1 | 13.4 | ||||||||||
Gross profit | 39.6 | 38.8 | 1.9 | 2.1 | ||||||||||
Gross profit rate | 16.3 | % | 16.2 | % | 0.1 | pts. | ||||||||
Total Americas | ||||||||||||||
Revenue from services | $ | 883.3 | $ | 856.9 | 3.1 | % | 3.4 | % | ||||||
Staffing fee-based income included in revenue from services | 8.2 | 7.2 | 12.7 | 13.1 | ||||||||||
Gross profit | 131.3 | 125.6 | 4.5 | 4.8 | ||||||||||
Total SG&A expenses | 110.8 | 100.2 | 10.6 | 10.9 | ||||||||||
Earnings from operations | 20.5 | 25.4 | (19.7 | ) | ||||||||||
Gross profit rate | 14.9 | % | 14.7 | % | 0.2 | pts. | ||||||||
Expense rates: | ||||||||||||||
% of revenue | 12.5 | 11.7 | 0.8 | |||||||||||
% of gross profit | 84.5 | 79.8 | 4.7 | |||||||||||
Return on sales | 2.3 | 3.0 | (0.7 | ) | ||||||||||
EMEA | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 231.3 | $ | 224.5 | 3.0 | % | 3.2 | % | ||||||
Staffing fee-based income included in revenue from services | 4.2 | 4.6 | (8.9 | ) | (6.1 | ) | ||||||||
Gross profit | 33.6 | 33.9 | (0.9 | ) | (0.4 | ) | ||||||||
Gross profit rate | 14.5 | % | 15.1 | % | (0.6 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 48.1 | $ | 45.1 | 6.5 | % | 6.0 | % | ||||||
Staffing fee-based income included in revenue from services | 3.5 | 3.9 | (9.6 | ) | (7.8 | ) | ||||||||
Gross profit | 10.9 | 10.8 | 0.6 | 1.0 | ||||||||||
Gross profit rate | 22.6 | % | 23.9 | % | (1.3 | ) | pts. | |||||||
Total EMEA | ||||||||||||||
Revenue from services | $ | 279.4 | $ | 269.6 | 3.6 | % | 3.6 | % | ||||||
Staffing fee-based income included in revenue from services | 7.7 | 8.5 | (9.3 | ) | (6.9 | ) | ||||||||
Gross profit | 44.5 | 44.7 | (0.5 | ) | (0.1 | ) | ||||||||
SG&A expenses excluding restructuring charges | 40.0 | 40.0 | — | |||||||||||
Restructuring charges | — | 0.3 | (100.0 | ) | ||||||||||
Total SG&A expenses | 40.0 | 40.3 | (0.8 | ) | (0.5 | ) | ||||||||
Earnings from operations | 4.5 | 4.4 | 1.6 | |||||||||||
Earnings from operations excluding restructuring charges | 4.5 | 4.7 | (5.5 | ) | ||||||||||
Gross profit rate | 15.9 | % | 16.6 | % | (0.7 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 14.3 | 14.8 | (0.5 | ) | ||||||||||
% of gross profit | 90.0 | 89.5 | 0.5 | |||||||||||
Return on sales (excluding restructuring charges) | 1.6 | 1.7 | (0.1 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
Third Quarter | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2014 | 2013 | Change | Change | |||||||||||
APAC | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 91.0 | $ | 87.6 | 3.9 | % | 2.2 | % | ||||||
Staffing fee-based income included in revenue from services | 2.0 | 2.3 | (15.5 | ) | (17.3 | ) | ||||||||
Gross profit | 11.7 | 12.7 | (8.2 | ) | (9.7 | ) | ||||||||
Gross profit rate | 12.8 | % | 14.5 | % | (1.7 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 10.6 | $ | 9.1 | 15.8 | % | 14.4 | % | ||||||
Staffing fee-based income included in revenue from services | 2.0 | 2.2 | (9.9 | ) | (11.0 | ) | ||||||||
Gross profit | 3.3 | 3.4 | (2.8 | ) | (4.0 | ) | ||||||||
Gross profit rate | 31.5 | % | 37.5 | % | (6.0 | ) | pts. | |||||||
Total APAC | ||||||||||||||
Revenue from services | $ | 101.6 | $ | 96.7 | 5.0 | % | 3.4 | % | ||||||
Staffing fee-based income included in revenue from services | 4.0 | 4.5 | (12.8 | ) | (14.2 | ) | ||||||||
Gross profit | 15.0 | 16.1 | (7.0 | ) | (8.5 | ) | ||||||||
SG&A expenses excluding restructuring charges | 14.2 | 14.5 | (2.5 | ) | ||||||||||
Restructuring charges | 0.3 | 0.1 | 410.5 | |||||||||||
Total SG&A expenses | 14.5 | 14.6 | (0.9 | ) | (2.7 | ) | ||||||||
Earnings from operations | 0.5 | 1.5 | (65.7 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 0.8 | 1.6 | (48.4 | ) | ||||||||||
Gross profit rate | 14.8 | % | 16.7 | % | (1.9 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 14.0 | 15.1 | (1.1 | ) | ||||||||||
% of gross profit | 94.6 | 90.2 | 4.4 | |||||||||||
Return on sales (excluding restructuring charges) | 0.8 | 1.6 | (0.8 | ) | ||||||||||
OCG | ||||||||||||||
Revenue from services | $ | 149.8 | $ | 135.3 | 10.7 | % | 10.9 | % | ||||||
Gross profit | 35.8 | 34.8 | 2.9 | 2.8 | ||||||||||
SG&A expenses excluding restructuring charges | 32.2 | 28.0 | 15.0 | |||||||||||
Restructuring charges | — | 0.1 | (100.0 | ) | ||||||||||
Total SG&A expenses | 32.2 | 28.1 | 14.7 | 14.7 | ||||||||||
Earnings from operations | 3.6 | 6.7 | (46.0 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 3.6 | 6.8 | (46.6 | ) | ||||||||||
Gross profit rate | 23.9 | % | 25.7 | % | (1.8 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 21.5 | 20.7 | 0.8 | |||||||||||
% of gross profit | 89.8 | 80.3 | 9.5 | |||||||||||
Return on sales (excluding restructuring charges) | 2.4 | 5.1 | (2.7 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
September Year to Date | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2014 | 2013 | Change | Change | |||||||||||
AMERICAS | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 1,915.1 | $ | 1,904.1 | 0.6 | % | 1.4 | % | ||||||
Staffing fee-based income included in revenue from services | 10.4 | 9.8 | 6.1 | 7.6 | ||||||||||
Gross profit | 280.0 | 274.5 | 2.0 | 2.8 | ||||||||||
Gross profit rate | 14.6 | % | 14.4 | % | 0.2 | pts. | ||||||||
PT | ||||||||||||||
Revenue from services | $ | 723.1 | $ | 733.7 | (1.4 | ) | % | (1.3 | ) | % | ||||
Staffing fee-based income included in revenue from services | 11.7 | 10.8 | 8.6 | 9.1 | ||||||||||
Gross profit | 118.4 | 116.1 | 2.0 | 2.2 | ||||||||||
Gross profit rate | 16.4 | % | 15.8 | % | 0.6 | pts. | ||||||||
Total Americas | ||||||||||||||
Revenue from services | $ | 2,638.2 | $ | 2,637.8 | — | % | 0.7 | % | ||||||
Staffing fee-based income included in revenue from services | 22.1 | 20.6 | 7.4 | 8.4 | ||||||||||
Gross profit | 398.4 | 390.6 | 2.0 | 2.6 | ||||||||||
Total SG&A expenses | 332.9 | 310.6 | 7.2 | 7.9 | ||||||||||
Earnings from operations | 65.5 | 80.0 | (18.3 | ) | ||||||||||
Gross profit rate | 15.1 | % | 14.8 | % | 0.3 | pts. | ||||||||
Expense rates: | ||||||||||||||
% of revenue | 12.6 | 11.8 | 0.8 | |||||||||||
% of gross profit | 83.6 | 79.5 | 4.1 | |||||||||||
Return on sales | 2.5 | 3.0 | (0.5 | ) | ||||||||||
EMEA | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 690.2 | $ | 645.3 | 7.0 | % | 5.7 | % | ||||||
Staffing fee-based income included in revenue from services | 14.0 | 14.9 | (6.0 | ) | (4.3 | ) | ||||||||
Gross profit | 101.0 | 98.8 | 2.2 | 1.2 | ||||||||||
Gross profit rate | 14.6 | % | 15.3 | % | (0.7 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 145.5 | $ | 131.7 | 10.3 | % | 7.7 | % | ||||||
Staffing fee-based income included in revenue from services | 10.7 | 11.7 | (8.3 | ) | (7.6 | ) | ||||||||
Gross profit | 33.3 | 32.0 | 3.8 | 2.3 | ||||||||||
Gross profit rate | 22.8 | % | 24.3 | % | (1.5 | ) | pts. | |||||||
Total EMEA | ||||||||||||||
Revenue from services | $ | 835.7 | $ | 777.0 | 7.5 | % | 6.0 | % | ||||||
Staffing fee-based income included in revenue from services | 24.7 | 26.6 | (7.0 | ) | (5.7 | ) | ||||||||
Gross profit | 134.3 | 130.8 | 2.6 | 1.5 | ||||||||||
SG&A expenses excluding restructuring charges | 124.2 | 122.1 | 1.7 | |||||||||||
Restructuring charges | 0.8 | 0.1 | 327.7 | |||||||||||
Total SG&A expenses | 125.0 | 122.2 | 2.2 | 0.8 | ||||||||||
Earnings from operations | 9.3 | 8.6 | 8.1 | |||||||||||
Earnings from operations excluding restructuring charges | 10.1 | 8.7 | 15.1 | |||||||||||
Gross profit rate | 16.1 | % | 16.8 | % | (0.7 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 14.9 | 15.7 | (0.8 | ) | ||||||||||
% of gross profit | 92.5 | 93.3 | (0.8 | ) | ||||||||||
Return on sales (excluding restructuring charges) | 1.2 | 1.1 | 0.1 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
September Year to Date | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2014 | 2013 | Change | Change | |||||||||||
APAC | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 260.5 | $ | 256.8 | 1.4 | % | 4.2 | % | ||||||
Staffing fee-based income included in revenue from services | 5.9 | 7.0 | (17.1 | ) | (14.0 | ) | ||||||||
Gross profit | 35.7 | 36.8 | (3.1 | ) | (0.3 | ) | ||||||||
Gross profit rate | 13.7 | % | 14.3 | % | (0.6 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 29.2 | $ | 29.3 | (0.5 | ) | % | 3.3 | % | |||||
Staffing fee-based income included in revenue from services | 5.8 | 6.7 | (13.0 | ) | (9.7 | ) | ||||||||
Gross profit | 9.4 | 10.5 | (10.2 | ) | (6.8 | ) | ||||||||
Gross profit rate | 32.2 | % | 35.7 | % | (3.5 | ) | pts. | |||||||
Total APAC | ||||||||||||||
Revenue from services | $ | 289.7 | $ | 286.1 | 1.3 | % | 4.1 | % | ||||||
Staffing fee-based income included in revenue from services | 11.7 | 13.7 | (15.1 | ) | (11.9 | ) | ||||||||
Gross profit | 45.1 | 47.3 | (4.6 | ) | (1.7 | ) | ||||||||
SG&A expenses excluding restructuring charges | 43.3 | 45.5 | (4.7 | ) | ||||||||||
Restructuring charges | 1.3 | 0.3 | 373.4 | |||||||||||
Total SG&A expenses | 44.6 | 45.8 | (2.3 | ) | 1.1 | |||||||||
Earnings from operations | 0.5 | 1.5 | (76.8 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 1.8 | 1.8 | (4.2 | ) | ||||||||||
Gross profit rate | 15.6 | % | 16.5 | % | (0.9 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 15.0 | 15.9 | (0.9 | ) | ||||||||||
% of gross profit | 96.2 | 96.2 | — | |||||||||||
Return on sales (excluding restructuring charges) | 0.6 | 0.6 | — | |||||||||||
OCG | ||||||||||||||
Revenue from services | $ | 422.1 | $ | 361.0 | 16.9 | % | 17.3 | % | ||||||
Gross profit | 101.3 | 91.7 | 10.5 | 10.6 | ||||||||||
SG&A expenses excluding restructuring charges | 94.7 | 81.6 | 16.0 | |||||||||||
Restructuring charges | — | 0.9 | (100.0 | ) | ||||||||||
Total SG&A expenses | 94.7 | 82.5 | 14.9 | 15.0 | ||||||||||
Asset impairments | — | 1.7 | (100.0 | ) | ||||||||||
Earnings from operations | 6.6 | 7.5 | (13.1 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 6.6 | 8.4 | (21.4 | ) | ||||||||||
Gross profit rate | 24.0 | % | 25.4 | % | (1.4 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 22.4 | 22.6 | (0.2 | ) | ||||||||||
% of gross profit | 93.4 | 88.9 | 4.5 | |||||||||||
Return on sales (excluding restructuring charges) | 1.6 | 2.4 | (0.8 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars) | ||||||||||
Sept. 28, 2014 | Dec. 29, 2013 | Sept. 29, 2013 | ||||||||
Current Assets | ||||||||||
Cash and equivalents | $ | 51.6 | $ | 125.7 | $ | 73.9 | ||||
Trade accounts receivable, less allowances of | ||||||||||
$9.2, $9.9 and $10.0, respectively | 1,158.1 | 1,023.1 | 1,071.8 | |||||||
Prepaid expenses and other current assets | 56.8 | 52.2 | 62.0 | |||||||
Deferred taxes | 28.9 | 35.5 | 40.3 | |||||||
Total current assets | 1,295.4 | 1,236.5 | 1,248.0 | |||||||
Property and Equipment, Net | 91.1 | 92.0 | 87.7 | |||||||
Noncurrent Deferred Taxes | 132.7 | 121.7 | 104.5 | |||||||
Goodwill, Net | 90.3 | 90.3 | 90.3 | |||||||
Other Assets | 291.5 | 258.1 | 241.0 | |||||||
Total Assets | $ | 1,901.0 | $ | 1,798.6 | $ | 1,771.5 | ||||
Current Liabilities | ||||||||||
Short-term borrowings | $ | 88.7 | $ | 28.3 | $ | 58.0 | ||||
Accounts payable and accrued liabilities | 339.0 | 342.4 | 308.9 | |||||||
Accrued payroll and related taxes | 318.6 | 294.9 | 300.9 | |||||||
Accrued insurance | 24.4 | 27.6 | 30.7 | |||||||
Income and other taxes | 74.0 | 68.8 | 71.5 | |||||||
Total current liabilities | 844.7 | 762.0 | 770.0 | |||||||
Noncurrent Liabilities | ||||||||||
Accrued insurance | 43.4 | 46.0 | 40.7 | |||||||
Accrued retirement benefits | 146.6 | 134.7 | 129.3 | |||||||
Other long-term liabilities | 40.7 | 33.3 | 28.0 | |||||||
Total noncurrent liabilities | 230.7 | 214.0 | 198.0 | |||||||
Stockholders' Equity | ||||||||||
Common stock | 40.1 | 40.1 | 40.1 | |||||||
Treasury stock | (52.5 | ) | (56.2 | ) | (57.5 | ) | ||||
Paid-in capital | 26.7 | 26.0 | 26.1 | |||||||
Earnings invested in the business | 752.3 | 751.3 | 736.0 | |||||||
Accumulated other comprehensive income | 59.0 | 61.4 | 58.8 | |||||||
Total stockholders' equity | 825.6 | 822.6 | 803.5 | |||||||
Total Liabilities and Stockholders' Equity | $ | 1,901.0 | $ | 1,798.6 | $ | 1,771.5 | ||||
STATISTICS: | ||||||||||
Working Capital | $ | 450.7 | $ | 474.5 | $ | 478.0 | ||||
Current Ratio | 1.5 | 1.6 | 1.6 | |||||||
Debt-to-capital % | 9.7 | % | 3.3 | % | 6.7 | % | ||||
Global Days Sales Outstanding | 58 | 52 | 56 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013 | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
2014 | 2013 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 6.7 | $ | 41.7 | ||
Noncash adjustments: | ||||||
Impairment of assets | — | 1.7 | ||||
Depreciation and amortization | 16.2 | 15.4 | ||||
Provision for bad debts | 3.6 | 1.1 | ||||
Stock-based compensation | 4.1 | 2.7 | ||||
Other, net | 1.3 | 0.7 | ||||
Changes in operating assets and liabilities | (140.9 | ) | (41.4 | ) | ||
Net cash (used in) from operating activities | (109.0 | ) | 21.9 | |||
Cash flows from investing activities: | ||||||
Capital expenditures | (15.0 | ) | (11.7 | ) | ||
Investment in equity affiliate | (5.4 | ) | — | |||
Other investing activities | 0.2 | — | ||||
Net cash used in investing activities | (20.2 | ) | (11.7 | ) | ||
Cash flows from financing activities: | ||||||
Net change in short-term borrowings | 60.4 | (6.1 | ) | |||
Dividend payments | (5.7 | ) | (5.7 | ) | ||
Other financing activities | 0.4 | 0.3 | ||||
Net cash from (used in) financing activities | 55.1 | (11.5 | ) | |||
Effect of exchange rates on cash and equivalents | — | (1.1 | ) | |||
Net change in cash and equivalents | (74.1 | ) | (2.4 | ) | ||
Cash and equivalents at beginning of period | 125.7 | 76.3 | ||||
Cash and equivalents at end of period | $ | 51.6 | $ | 73.9 | ||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
Third Quarter (Commercial, PT and OCG) | |||||||||||||
% Change | |||||||||||||
Constant | |||||||||||||
2014 | 2013 | US$ | Currency | ||||||||||
Americas | |||||||||||||
United States | $ | 873.7 | $ | 843.5 | 3.6 | % | 3.6 | % | |||||
Canada | 51.9 | 52.9 | (1.9 | ) | 2.6 | ||||||||
Mexico | 37.0 | 33.1 | 11.8 | 13.6 | |||||||||
Puerto Rico | 25.7 | 24.4 | 5.1 | 5.1 | |||||||||
Brazil | 13.6 | 13.1 | 3.7 | 3.2 | |||||||||
Total Americas | 1,001.9 | 967.0 | 3.6 | 3.9 | |||||||||
EMEA | |||||||||||||
France | 70.1 | 62.4 | 12.4 | 12.0 | |||||||||
Switzerland | 66.7 | 68.6 | (2.7 | ) | (4.7 | ) | |||||||
Portugal | 33.3 | 24.1 | 38.0 | 37.8 | |||||||||
Russia | 28.7 | 32.9 | (13.0 | ) | (3.9 | ) | |||||||
United Kingdom | 26.2 | 26.5 | (1.1 | ) | (8.4 | ) | |||||||
Germany | 17.5 | 17.4 | 0.6 | 0.6 | |||||||||
Norway | 14.8 | 16.1 | (7.7 | ) | (3.8 | ) | |||||||
Italy | 14.8 | 13.8 | 6.7 | 6.7 | |||||||||
Other | 15.8 | 16.0 | (1.0 | ) | (0.3 | ) | |||||||
Total EMEA | 287.9 | 277.8 | 3.6 | 3.7 | |||||||||
APAC | |||||||||||||
Singapore | 33.4 | 29.4 | 13.7 | 12.2 | |||||||||
Australia | 32.3 | 32.4 | (0.2 | ) | (1.3 | ) | |||||||
Malaysia | 16.7 | 17.2 | (3.0 | ) | (4.5 | ) | |||||||
New Zealand | 12.7 | 12.6 | 0.4 | (5.1 | ) | ||||||||
Other | 11.5 | 9.2 | 25.1 | 26.2 | |||||||||
Total APAC | 106.6 | 100.8 | 5.8 | 4.1 | |||||||||
Total Kelly Services, Inc. | $ | 1,396.4 | $ | 1,345.6 | 3.8 | % | 3.9 | % | |||||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
September Year to Date (Commercial, PT and OCG) | |||||||||||||
% Change | |||||||||||||
Constant | |||||||||||||
2014 | 2013 | US$ | Currency | ||||||||||
Americas | |||||||||||||
United States | $ | 2,601.9 | $ | 2,547.3 | 2.1 | % | 2.1 | % | |||||
Canada | 148.2 | 163.9 | (9.6 | ) | (3.5 | ) | |||||||
Mexico | 102.3 | 99.4 | 2.9 | 6.4 | |||||||||
Puerto Rico | 78.4 | 73.6 | 6.4 | 6.4 | |||||||||
Brazil | 43.2 | 45.0 | (4.1 | ) | 5.2 | ||||||||
Total Americas | 2,974.0 | 2,929.2 | 1.5 | 2.1 | |||||||||
EMEA | |||||||||||||
France | 202.2 | 182.0 | 11.1 | 7.9 | |||||||||
Switzerland | 195.7 | 185.6 | 5.5 | 1.4 | |||||||||
Russia | 96.4 | 102.0 | (5.5 | ) | 5.9 | ||||||||
Portugal | 92.4 | 63.0 | 46.6 | 42.5 | |||||||||
United Kingdom | 82.4 | 78.1 | 5.5 | (2.4 | ) | ||||||||
Germany | 50.7 | 49.3 | 3.0 | 0.1 | |||||||||
Italy | 46.3 | 43.6 | 6.0 | 2.9 | |||||||||
Norway | 43.6 | 46.3 | (5.7 | ) | (1.0 | ) | |||||||
Other | 50.9 | 50.7 | 0.4 | (1.8 | ) | ||||||||
Total EMEA | 860.6 | 800.6 | 7.5 | 6.0 | |||||||||
APAC | |||||||||||||
Singapore | 94.8 | 83.5 | 13.5 | 14.0 | |||||||||
Australia | 88.8 | 100.4 | (11.6 | ) | (5.9 | ) | |||||||
Malaysia | 50.0 | 51.1 | (2.1 | ) | 1.5 | ||||||||
New Zealand | 38.2 | 36.1 | 5.9 | 2.1 | |||||||||
Other | 31.3 | 26.4 | 18.4 | 27.7 | |||||||||
Total APAC | 303.1 | 297.5 | 1.9 | 4.9 | |||||||||
Total Kelly Services, Inc. | $ | 4,137.7 | $ | 4,027.3 | 2.7 | % | 3.1 | % | |||||
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
FOR THE 13 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
2014 | 2013 | |||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | Adjusted Earnings | % Change | ||||||||||||
Revenue from services | $ | 1,396.4 | $ | — | $ | 1,396.4 | $ | 1,345.6 | 3.8 | % | ||||||
Cost of services | 1,171.0 | — | 1,171.0 | 1,125.2 | 4.1 | |||||||||||
Gross profit | 225.4 | — | 225.4 | 220.4 | 2.2 | |||||||||||
SG&A expenses | 218.3 | (4.0 | ) | 214.3 | 199.7 | 7.3 | ||||||||||
Earnings from operations | 7.1 | 4.0 | 11.1 | 20.7 | (46.8 | ) | ||||||||||
Other expense, net | 2.2 | — | 2.2 | 1.3 | (63.1 | ) | ||||||||||
Earnings before taxes | 4.9 | 4.0 | 8.9 | 19.4 | (54.6 | ) | ||||||||||
Inc. tax expense (benefit) | 3.5 | 1.5 | 5.0 | 0.1 | NM | |||||||||||
Net earnings | $ | 1.4 | $ | 2.5 | $ | 3.9 | $ | 19.3 | (80.5 | ) | % | |||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.06 | $ | 0.10 | $ | 0.51 | (80.4 | ) | % | |||||
Diluted | $ | 0.03 | $ | 0.06 | $ | 0.10 | $ | 0.51 | (80.4 | ) | % | |||||
2013 | ||||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | ||||||||||||||
Revenue from services | $ | 1,345.6 | $ | — | $ | 1,345.6 | ||||||||||
Cost of services | 1,125.2 | — | 1,125.2 | |||||||||||||
Gross profit | 220.4 | — | 220.4 | |||||||||||||
SG&A expenses | 200.2 | (0.5 | ) | 199.7 | ||||||||||||
Earnings from operations | 20.2 | 0.5 | 20.7 | |||||||||||||
Other expense, net | 1.3 | — | 1.3 | |||||||||||||
Earnings before taxes | 18.9 | 0.5 | 19.4 | |||||||||||||
Inc. tax expense (benefit) | 0.1 | — | 0.1 | |||||||||||||
Net earnings | $ | 18.8 | $ | 0.5 | $ | 19.3 | ||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.01 | $ | 0.51 | ||||||||||
Diluted | $ | 0.49 | $ | 0.01 | $ | 0.51 | ||||||||||
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 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
2014 | 2013 | |||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | Adjusted Earnings | % Change | ||||||||||||
Revenue from services | $ | 4,137.7 | $ | — | $ | 4,137.7 | $ | 4,027.3 | 2.7 | % | ||||||
Cost of services | 3,461.9 | — | 3,461.9 | 3,369.3 | 2.8 | |||||||||||
Gross profit | 675.8 | — | 675.8 | 658.0 | 2.7 | |||||||||||
SG&A expenses | 656.5 | (5.8 | ) | 650.7 | 611.3 | 6.5 | ||||||||||
Earnings from operations | 19.3 | 5.8 | 25.1 | 46.7 | (46.7 | ) | ||||||||||
Other expense, net | 4.2 | — | 4.2 | 3.9 | (4.6 | ) | ||||||||||
Earnings before taxes | 15.1 | 5.8 | 20.9 | 42.8 | (51.4 | ) | ||||||||||
Inc. tax expense (benefit) | 8.4 | 2.1 | 10.5 | (1.8 | ) | NM | ||||||||||
Net earnings | $ | 6.7 | $ | 3.7 | $ | 10.4 | $ | 44.6 | (77.0 | ) | % | |||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.17 | $ | 0.10 | $ | 0.27 | $ | 1.17 | (76.9 | ) | % | |||||
Diluted | $ | 0.17 | $ | 0.10 | $ | 0.27 | $ | 1.17 | (76.9 | ) | % | |||||
2013 | ||||||||||||||||
As reported | Restructuring Charges (Note 1) | Asset Impairments (Note 2) | Adjusted Earnings | |||||||||||||
Revenue from services | $ | 4,027.3 | $ | — | $ | — | $ | 4,027.3 | ||||||||
Cost of services | 3,369.3 | — | — | 3,369.3 | ||||||||||||
Gross profit | 658.0 | — | — | 658.0 | ||||||||||||
SG&A expenses | 612.6 | (1.3 | ) | — | 611.3 | |||||||||||
Asset impairments | 1.7 | — | (1.7 | ) | — | |||||||||||
Earnings from operations | 43.7 | 1.3 | 1.7 | 46.7 | ||||||||||||
Other expense, net | 3.9 | — | — | 3.9 | ||||||||||||
Earnings before taxes | 39.8 | 1.3 | 1.7 | 42.8 | ||||||||||||
Inc. tax expense (benefit) | (1.9 | ) | 0.1 | — | (1.8 | ) | ||||||||||
Net earnings | $ | 41.7 | $ | 1.2 | $ | 1.7 | $ | 44.6 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.09 | $ | 0.03 | $ | 0.04 | $ | 1.17 | ||||||||
Diluted | $ | 1.09 | $ | 0.03 | $ | 0.04 | $ | 1.17 | ||||||||
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. | ||||||||||||||||