2013-11-06 | Kelly Services(R) Reports 3rd Quarter Results | NDAQ:KELYA

Kelly Services(R) Reports 3rd Quarter Results

TROY, MI--(Marketwired - Nov 6, 2013) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the third quarter of 2013.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2013 totaled $1.3 billion, a 0.6% decrease compared to the corresponding quarter of 2012.

Earnings from operations for the third quarter of 2013 totaled $20.2 million. Included in the results of operations in the third quarter of 2013 are restructuring charges of $0.5 million. Excluding the restructuring charges, earnings from operations were $20.7 million in the third quarter of 2013, compared to earnings of $24.0 million last year.

Diluted earnings per share from continuing operations in the third quarter of 2013 were $0.49. Adjusted earnings per share were $0.51 in the third quarter of 2013 compared to $0.43 in the third quarter of 2012.

"We're pleased that our third quarter performance surpassed our expectations despite an erratic and lackluster economy," said Camden. "The Americas delivered a nice turnaround in fee performance and KellyOCG brought in strong revenue growth and outsized operating profits. Overall, our results continue to demonstrate that Kelly's strategy is responding to market demands for more holistic workforce solutions, access to skilled talent, and workforce models that help companies achieve their short- and long-term business goals."

Kelly also reported that on November 5, its board of directors declared a dividend of $0.05 per share. The dividend is payable December 6 to shareholders of record as of the close of business on November 18.

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 1 651 291-5254

The pass code is Kelly Services

Via the Internet:

The call is also available via the internet through the Kelly Services website:
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, including our ability to successfully expand into new markets and service lines, material changes in demand from or loss of large corporate customers, impairment charges triggered by adverse industry or market developments, unexpected termination of customer contracts, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, liability for improper disclosure of sensitive or private employee information, unexpected changes in claim trends on workers' compensation and benefit plans, our ability to maintain specified financial covenants in our bank facilities, our ability to access credit markets and continued availability of financing for funding working capital, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to retain the services of our senior management, local management and field personnel, the impact of changes in laws and regulations (including federal, state and international tax laws), the net financial impact of the Patient Protection and Affordable Care Act on our business, risks associated with conducting business in foreign countries, including foreign currency fluctuations, and other risks, uncertainties and factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Actual results may differ materially from any forward looking statements contained herein, and we have no intention to update these statements.

About Kelly Services^®Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a leader in providing workforce solutions. Kelly^® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 560,000 employees annually. Revenue in 2012 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. Download The Talent Project, a free iPad^® app by Kelly Services.

iPad is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(UNAUDITED)
(In millions of dollars except per share data)

		2013		2012		Change			% Change

Revenue from services		$	1,345.6	$	1,354.2	$	(8.6	)	(0.6	)%

Cost of services			1,125.2		1,126.7		(1.5	)	(0.1	)

Gross profit			220.4		227.5		(7.1	)	(3.1	)

Selling, general and administrative expenses			200.2		203.5		(3.3	)	(1.6	)

Earnings from operations			20.2		24.0		(3.8	)	(15.8	)

Other expense, net			1.3		0.7		0.6		88.9

Earnings from continuing operations before taxes			18.9		23.3		(4.4	)	(19.0	)

Income tax expense			0.1		6.7		(6.6	)	(99.2	)

Earnings from continuing operations			18.8		16.6		2.2		13.6

Earnings from discontinued operations, net of tax			-		-		-		NM

Net earnings		$	18.8	$	16.6	$	2.2		13.5	%

Basic earnings per share on common stock
	Earnings from continuing operations	$	0.49	$	0.43	$	0.06		14.0	%
	Earnings from discontinued operations		-		-		-		NM
	Net earnings		0.49		0.43		0.06		14.0

Diluted earnings per share on common stock
	Earnings from continuing operations	$	0.49	$	0.43	$	0.06		14.0	%
	Earnings from discontinued operations		-		-		-		NM
	Net earnings		0.49		0.43		0.06		14.0


STATISTICS:

Gross profit rate		16.4	%	16.8	%	(0.4	)pts.

Selling, general and administrative expenses:
	% of revenue	14.9		15.0		(0.1	)
	% of gross profit	90.8		89.4		1.4

% Return:
	Earnings from operations	1.5		1.8		(0.3	)
	Earnings from continuing operations before taxes	1.4		1.7		(0.3	)
	Earnings from continuing operations	1.4		1.2		0.2
	Net earnings	1.4		1.2		0.2

Effective income tax rate		0.3	%	28.9	%	(28.6	)pts.

Average number of shares outstanding (millions):
	Basic	37.4		37.1
	Diluted	37.4		37.1

Shares adjusted for nonvested restricted awards (millions):
	Basic	38.1		38.3
	Diluted	38.1		38.3



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(UNAUDITED)
(In millions of dollars except per share data)

		2013			2012		Change			% Change

Revenue from services		$	4,027.3		$	4,075.1	$	(47.8	)	(1.2	)%

Cost of services			3,369.3			3,400.7		(31.4	)	(0.9	)

Gross profit			658.0			674.4		(16.4	)	(2.4	)

Selling, general and administrative expenses			612.6			611.9		0.7		0.1

Asset impairments			1.7			-		1.7		NM

Earnings from operations			43.7			62.5		(18.8	)	(30.0	)

Other expense, net			3.9			1.8		2.1		118.3

Earnings from continuing operations before taxes			39.8			60.7		(20.9	)	(34.4	)

Income tax (benefit) expense			(1.9	)		19.9		(21.8	)	(109.9	)

Earnings from continuing operations			41.7			40.8		0.9		2.4

Earnings from discontinued operations, net of tax			-			0.4		(0.4	)	(99.8	)

Net earnings		$	41.7		$	41.2	$	0.5		1.3	%

Basic earnings per share on common stock
	Earnings from continuing operations	$	1.09		$	1.07	$	0.02		1.9	%
	Earnings from discontinued operations		-			0.01		(0.01	)	(100.0	)
	Net earnings		1.09			1.09		-		-

Diluted earnings per share on common stock
	Earnings from continuing operations	$	1.09		$	1.07	$	0.02		1.9	%
	Earnings from discontinued operations		-			0.01		(0.01	)	(100.0	)
	Net earnings		1.09			1.09		-		-



STATISTICS:

Gross profit rate		16.3	%	16.5	%	(0.2	)pts.

Selling, general and administrative expenses:
	% of revenue	15.2		15.0		0.2
	% of gross profit	93.1		90.7		2.4

% Return:
	Earnings from operations	1.1		1.5		(0.4	)
	Earnings from continuing operations before taxes	1.0		1.5		(0.5	)
	Earnings from continuing operations	1.0		1.0		0.0
	Net earnings	1.0		1.0		0.0

Effective income tax rate		(5.0	)%	32.8	%	(37.8	)pts.

Average number of shares outstanding (millions):
	Basic	37.2		37.0
	Diluted	37.3		37.0

Shares adjusted for nonvested restricted awards (millions):
	Basic	38.2		38.0
	Diluted	38.2		38.0



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

				Third Quarter
												Constant
												Currency
				2013			2012			Change		Change
AMERICAS
	Commercial
		Revenue from services (including fee-based income)		$	617.0		$	642.2		(3.9	)%	(3.5	)%
		Fee-based income			4.1			4.4		(6.6	)	(5.2	)
		Gross profit			86.8			96.4		(10.1	)	(9.6	)

		Gross profit rate			14.1	%		15.0	%	(0.9	)pts.

	PT
		Revenue from services (including fee-based income)		$	248.3		$	261.6		(5.1	)%	(5.0	)%
		Fee-based income			4.3			3.7		17.2		17.5
		Gross profit			40.9			40.9		0.2		0.3

		Gross profit rate			16.5	%		15.6	%	0.9	pts.

	Total Americas
		Revenue from services (including fee-based income)		$	865.3		$	903.8		(4.3	)%	(3.9	)%
		Fee-based income			8.4			8.1		4.3		5.2
		Gross profit			127.7			137.3		(7.0	)	(6.7	)
		Total SG&A expenses			101.5			101.5		-		0.4
		Earnings from operations			26.2			35.8		(26.8	)

		Gross profit rate			14.8	%		15.2	%	(0.4	)pts.
		Expense rates:
			% of revenue		11.7			11.2		0.5
			% of gross profit		79.5			73.9		5.6
		Operating margin			3.0			4.0		(1.0	)

EMEA
	Commercial
		Revenue from services (including fee-based income)		$	224.5		$	214.5		4.7	%	1.8	%
		Fee-based income			4.8			5.2		(7.5	)	(8.0	)
		Gross profit			33.9			33.4		1.6		(1.1	)

		Gross profit rate			15.1	%		15.6	%	(0.5	)pts.

	PT
		Revenue from services (including fee-based income)		$	45.1		$	41.5		8.7	%	5.1	%
		Fee-based income			3.9			4.1		(3.6	)	(4.8	)
		Gross profit			10.8			10.5		2.5		(0.3	)

		Gross profit rate			23.9	%		25.4	%	(1.5	)pts.

	Total EMEA
		Revenue from services (including fee-based income)		$	269.6		$	256.0		5.3	%	2.3	%
		Fee-based income			8.7			9.3		(5.8	)	(6.6	)
		Gross profit			44.7			43.9		1.8		(0.9	)
		SG&A expenses excluding restructuring charges			40.0			40.0		-
		Restructuring charges			0.3			-		NM
		Total SG&A expenses			40.3			40.0		0.9		(2.1	)
		Earnings from operations			4.4			3.9		11.5
		Earnings from operations excluding restructuring charges			4.7			3.9		19.7

		Gross profit rate			16.6	%		17.1	%	(0.5	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		14.8			15.6		(0.8	)
			% of gross profit		89.5			91.1		(1.6	)
		Operating margin (excluding restructuring charges)			1.7			1.5		0.2



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

				Third Quarter
												Constant
												Currency
				2013			2012			Change		Change
APAC
	Commercial
		Revenue from services (including fee-based income)		$	87.6		$	85.7		2.2	%	8.6	%
		Fee-based income			2.6			2.9		(8.7	)	(1.2	)
		Gross profit			12.7			12.8		(0.6	)	6.1

		Gross profit rate			14.5	%		14.9	%	(0.4	)pts.

	PT
		Revenue from services (including fee-based income)		$	9.1		$	14.3		(36.1)	%	(30.6	)%
		Fee-based income			2.2			4.8		(54.0	)	(50.8	)
		Gross profit			3.4			6.2		(44.3	)	(40.0	)

		Gross profit rate			37.5	%		43.0	%	(5.5	)pts.

	Total APAC
		Revenue from services (including fee-based income)		$	96.7		$	100.0		(3.3	)%	3.0	%
		Fee-based income			4.8			7.7		(37.1	)	(32.3	)
		Gross profit			16.1			19.0		(14.8	)	(8.9	)
		SG&A expenses excluding restructuring charges			14.5			18.8		(22.6	)
		Restructuring charges			0.1			-		NM
		Total SG&A expenses			14.6			18.8		(22.3	)	(16.6	)
		Earnings from operations			1.5			0.2		NM
		Earnings from operations excluding restructuring charges			1.6			0.2		NM

		Gross profit rate			16.7	%		18.9	%	(2.2	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		15.1			18.8		(3.7	)
			% of gross profit		90.2			99.3		(9.1	)
		Operating margin (excluding restructuring charges)			1.6			0.1		1.5

	OCG
		Revenue from services (including fee-based income)		$	126.9		$	104.7		21.2	%	21.7	%
		Fee-based income			17.0			13.2		29.4		29.5
		Gross profit			32.7			28.2		15.7		16.1
		SG&A expenses excluding restructuring charges			26.7			24.2		10.4
		Restructuring charges			0.1			-		NM
		Total SG&A expenses			26.8			24.2		10.7		10.9
		Earnings from operations			5.9			4.0		45.4
		Earnings from operations excluding restructuring charges			6.0			4.0		47.2

		Gross profit rate			25.8	%		27.0	%	(1.2	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		21.0			23.1		(2.1	)
			% of gross profit		81.6			85.5		(3.9	)
		Operating margin (excluding restructuring charges)			4.7			3.9		0.8



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

				September Year to Date
												Constant
												Currency
				2013			2012			Change		Change
AMERICAS
	Commercial
		Revenue from services (including fee-based income)		$	1,904.1		$	1,980.1		(3.8	)%	(3.6	)%
		Fee-based income			12.0			12.1		(0.3	)	0.7
		Gross profit			274.5			292.1		(6.1	)	(5.8	)

		Gross profit rate			14.4	%		14.8	%	(0.4	)pts.

	PT
		Revenue from services (including fee-based income)		$	758.9		$	774.1		(2.0	)%	(2.0	)%
		Fee-based income			12.3			11.3		8.3		8.5
		Gross profit			122.4			120.8		1.3		1.3

		Gross profit rate			16.1	%		15.6	%	0.5	pts.

	Total Americas
		Revenue from services (including fee-based income)		$	2,663.0		$	2,754.2		(3.3	)%	(3.2	)%
		Fee-based income			24.3			23.4		3.9		4.5
		Gross profit			396.9			412.9		(3.9	)	(3.7	)
		Total SG&A expenses			314.5			303.4		3.6		3.9
		Earnings from operations			82.4			109.5		(24.7	)

		Gross profit rate			14.9	%		15.0	%	(0.1	)pts.
		Expense rates:
			% of revenue		11.8			11.0		0.8
			% of gross profit		79.2			73.5		5.7
		Operating margin			3.1			4.0		(0.9	)

EMEA
	Commercial
		Revenue from services (including fee-based income)		$	645.3		$	641.2		0.6	%	(0.4	)%
		Fee-based income			15.5			17.5		(11.7	)	(11.6	)
		Gross profit			98.8			101.1		(2.2	)	(3.3	)

		Gross profit rate			15.3	%		15.8	%	(0.5	)pts.

	PT
		Revenue from services (including fee-based income)		$	131.7		$	125.3		5.1	%	3.8	%
		Fee-based income			11.8			13.1		(9.8	)	(10.0	)
		Gross profit			32.0			32.7		(2.2	)	(3.1	)

		Gross profit rate			24.3	%		26.1	%	(1.8	)pts.

	Total EMEA
		Revenue from services (including fee-based income)		$	777.0		$	766.5		1.4	%	0.3	%
		Fee-based income			27.3			30.6		(10.9	)	(11.0	)
		Gross profit			130.8			133.8		(2.2	)	(3.3	)
		SG&A expenses excluding restructuring charges			122.1			126.4		(3.4	)
		Restructuring charges			0.1			(2.2	)	108.8
		Total SG&A expenses			122.2			124.2		(1.6	)	(2.6	)
		Earnings from operations			8.6			9.6		(10.5	)
		Earnings from operations excluding restructuring charges			8.7			7.4		17.9

		Gross profit rate			16.8	%		17.5	%	(0.7	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		15.7			16.5		(0.8	)
			% of gross profit		93.3			94.4		(1.1	)
		Operating margin (excluding restructuring charges)			1.1			1.0		0.1



KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

				September Year to Date
												Constant
												Currency
				2013			2012			Change		Change
APAC
	Commercial
		Revenue from services (including fee-based income)		$	256.8		$	258.3		(0.6	)%	1.6	%
		Fee-based income			8.2			9.3		(12.0	)	(9.0	)
		Gross profit			36.8			38.4		(4.1	)	(1.8	)

		Gross profit rate			14.3	%		14.9	%	(0.6	)pts.

	PT
		Revenue from services (including fee-based income)		$	29.3		$	39.9		(26.6	)%	(24.1	)%
		Fee-based income			6.7			12.9		(48.6	)	(47.1	)
		Gross profit			10.5			16.7		(37.2	)	(35.3	)

		Gross profit rate			35.7	%		41.8	%	(6.1	)pts.

	Total APAC
		Revenue from services (including fee-based income)		$	286.1		$	298.2		(4.1	)%	(1.9	)%
		Fee-based income			14.9			22.2		(33.2	)	(31.2	)
		Gross profit			47.3			55.1		(14.1	)	(11.9	)
		SG&A expenses excluding restructuring charges			45.5			57.5		(20.9	)
		Restructuring charges			0.3			-		NM
		Total SG&A expenses			45.8			57.5		(20.4	)	(18.3	)
		Earnings from operations			1.5			(2.4	)	NM
		Earnings from operations excluding restructuring charges			1.8			(2.4	)	NM

		Gross profit rate			16.5	%		18.5	%	(2.0	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		15.9			19.3		(3.4	)
			% of gross profit		96.2			104.4		(8.2	)
		Operating margin (excluding restructuring charges)			0.6			(0.8	)	1.4

OCG
		Revenue from services (including fee-based income)		$	335.8		$	282.8		18.8	%	19.0	%
		Fee-based income			47.3			37.6		26.2		26.4
		Gross profit			85.4			75.0		13.8		14.0
		SG&A expenses excluding restructuring charges			77.7			69.6		11.6
		Restructuring charges			0.9			-		NM
		Total SG&A expenses			78.6			69.6		12.8		12.9
		Asset impairments			1.7			-		NM
		Earnings from operations			5.1			5.4		(3.8	)
		Earnings from operations excluding restructuring charges			6.0			5.4		11.1

		Gross profit rate			25.4	%		26.5	%	(1.1	)pts.
		Expense rates (excluding restructuring charges):
			% of revenue		23.1			24.6		(1.5	)
			% of gross profit		91.0			92.8		(1.8	)
		Operating margin (excluding restructuring charges)			1.8			1.9		(0.1	)



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
			Sept. 29, 2013			Dec. 30, 2012			Sept. 30, 2012
Current Assets
	Cash and equivalents		$	73.9		$	76.3		$	70.3
	Trade accounts receivable, less allowances of $10.0 and $10.4 and $11.9, respectively			1,071.8			1,013.9			1,018.8
	Prepaid expenses and other current assets			62.0			57.5			62.9
	Deferred taxes			40.3			44.9			38.1
		Total current assets		1,248.0			1,192.6			1,190.1

Property and Equipment, Net				87.7			89.9			90.4

Noncurrent Deferred Taxes				104.5			82.8			88.8

Goodwill, Net				90.3			89.5			91.2

Other Assets				241.0			180.9			174.8
Total Assets			$	1,771.5		$	1,635.7		$	1,635.3

Current Liabilities
	Short-term borrowings		$	58.0		$	64.1		$	83.6
	Accounts payable and accrued liabilities			308.9			295.6			279.1
	Accrued payroll and related taxes			300.9			264.5			269.9
	Accrued insurance			30.7			32.8			28.8
	Income and other taxes			71.5			65.3			62.7
		Total current liabilities		770.0			722.3			724.1

Noncurrent Liabilities
	Accrued insurance			40.7			43.5			48.9
	Accrued retirement benefits			129.3			111.0			108.5
	Other long-term liabilities			28.0			17.9			25.1
		Total noncurrent liabilities		198.0			172.4			182.5

Stockholders' Equity
	Common stock			40.1			40.1			40.1
	Treasury stock			(57.5	)		(61.6	)		(63.1	)
	Paid-in capital			26.1			27.1			27.7
	Earnings invested in the business			736.0			700.0			693.0
	Accumulated other comprehensive income			58.8			35.4			31.0
		Total stockholders' equity		803.5			741.0			728.7
Total Liabilities and Stockholders' Equity			$	1,771.5		$	1,635.7		$	1,635.3


STATISTICS:
Working Capital			$	478.0		$	470.3		$	466.0
Current Ratio				1.6			1.7			1.6
Debt-to-capital %				6.7	%		8.0	%		10.3	%
Global Days Sales Outstanding				56			53			54



KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(UNAUDITED)
(In millions of dollars)



				2013			2012

Cash flows from operating activities
	Net earnings			$	41.7		$	41.2
	Noncash adjustments:
		Impairment of assets			1.7			-
		Depreciation and amortization			15.4			16.8
		Provision for bad debts			1.1			1.2
		Stock-based compensation			2.7			3.7
		Other, net			0.7			-
	Changes in operating assets and liabilities				(41.4	)		(42.0	)

			Net cash from operating activities		21.9			20.9

Cash flows from investing activities
	Capital expenditures				(11.7	)		(13.9	)
	Other investing activities				-			0.1

			Net cash used in investing activities		(11.7	)		(13.8	)

Cash flows from financing activities
	Net change in short-term borrowings				(6.1	)		(12.6	)
	Dividend payments				(5.7	)		(5.7	)
	Other financing activities				0.3			0.1

			Net cash used in financing activities		(11.5	)		(18.2	)

Effect of exchange rates on cash and equivalents					(1.1	)		0.4

Net change in cash and equivalents					(2.4	)		(10.7	)
Cash and equivalents at beginning of period					76.3			81.0


Cash and equivalents at end of period				$	73.9		$	70.3



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

		Third Quarter (Commercial, PT and OCG)
						% Change
								Constant
		2013		2012		US$		Currency

Americas
	United States	$	843.5	$	853.4	(1.2	)%	(1.2	)%
	Canada		52.9		61.9	(14.5	)	(10.8	)
	Mexico		33.1		31.1	6.6		4.5
	Puerto Rico		24.4		24.5	(0.3	)	(0.3	)
	Brazil		13.1		14.3	(8.0	)	1.8
Total Americas			967.0		985.2	(1.8	)	(1.5	)

EMEA
	Switzerland		68.6		61.0	12.3		8.8
	France		62.4		60.3	3.6		(2.2	)
	Russia		32.9		31.7	3.7		6.6
	United Kingdom		26.5		25.6	3.6		5.6
	Portugal		24.1		18.8	28.2		21.2
	Germany		17.4		17.8	(1.9	)	(7.4	)
	Norway		16.1		17.6	(8.3	)	(7.2	)
	Italy		13.8		13.1	4.9		(0.8	)
	Other		16.0		17.2	(7.5	)	(11.6	)
Total EMEA			277.8		263.1	5.5		2.6

APAC
	Australia		32.4		35.4	(8.5	)	3.8
	Singapore		29.4		26.0	12.8		14.8
	Malaysia		17.2		19.1	(9.7	)	(6.2	)
	New Zealand		12.6		13.0	(2.6	)	(1.3	)
	Other		9.2		12.4	(26.2	)	(18.1	)
Total APAC			100.8		105.9	(4.9	)	1.5

Total Kelly Services, Inc.		$	1,345.6	$	1,354.2	(0.6	)%	(0.5	)%



KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

		September Year to Date (Commercial, PT and OCG)
						% Change
								Constant
		2013		2012		US$		Currency

Americas
	United States	$	2,547.3	$	2,586.3	(1.5	)%	(1.5	)%
	Canada		163.9		183.4	(10.6	)	(8.8	)
	Mexico		99.4		82.4	20.7		15.6
	Puerto Rico		73.6		76.3	(3.6	)	(3.6	)
	Brazil		45.0		46.7	(3.7	)	6.6
Total Americas			2,929.2		2,975.1	(1.5	)	(1.4	)

EMEA
	Switzerland		185.6		174.4	6.4		5.7
	France		182.0		184.2	(1.2	)	(3.9	)
	Russia		102.0		97.1	5.0		7.1
	United Kingdom		78.1		79.3	(1.5	)	0.5
	Portugal		63.0		56.0	12.5		9.3
	Germany		49.3		53.9	(8.5	)	(11.0	)
	Norway		46.3		50.8	(8.8	)	(9.5	)
	Italy		43.6		44.5	(2.0	)	(4.5	)
	Other		50.7		48.4	4.6		2.1
Total EMEA			800.6		788.6	1.5		0.4

APAC
	Australia		100.4		101.6	(1.2	)	4.3
	Singapore		83.5		75.1	11.2		10.7
	Malaysia		51.1		54.9	(6.9	)	(5.8	)
	New Zealand		36.1		39.5	(8.5	)	(9.8	)
	Other		26.4		40.3	(34.6	)	(30.2	)
Total APAC			297.5		311.4	(4.5	)	(2.2	)

Total Kelly Services, Inc.		$	4,027.3	$	4,075.1	(1.2	)%	(1.1	)%



KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(UNAUDITED)
(In millions of dollars except per share data)

		2013							2012
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Earnings		% Change

Revenue from services		$	1,345.6	$	-		$	1,345.6	$	1,354.2	(0.6	)%
Cost of services			1,125.2		-			1,125.2		1,126.7	(0.1	)

Gross profit			220.4		-			220.4		227.5	(3.1	)
Selling, general and administrative expenses			200.2		(0.5	)		199.7		203.5	(1.8	)


Earnings from operations			20.2		0.5			20.7		24.0	(13.9	)
Other expense, net			1.3		-			1.3		0.7	(88.9	)

Earnings from continuing operations before taxes			18.9		0.5			19.4		23.3	(17.1	)
Income tax expense (benefit)			0.1		-			0.1		6.7	(99.2	)

Earnings from continuing operations		$	18.8	$	0.5		$	19.3	$	16.6	16.3	%

Earnings per share from continuing operations:
	Basic	$	0.49	$	0.01		$	0.51	$	0.43	18.6	%
	Diluted	$	0.49	$	0.01		$	0.51	$	0.43	18.6	%

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equalthe amounts computed for the total year.

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 39 WEEKS ENDED SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(UNAUDITED)
(In millions of dollars except per share data)

					2013									2012
		As reported			Restructuring Charges (Note 1)			Asset Impairments (Note 2)			Adjusted Earnings			Adjusted Earnings		% Change

Revenue from services		$	4,027.3		$	-		$	-		$	4,027.3		$	4,075.1	(1.2	)%

Cost of services			3,369.3			-			-			3,369.3			3,400.7	(0.9	)

Gross profit			658.0			-			-			658.0			674.4	(2.4	)

Selling, general and administrative expenses			612.6			(1.3	)		-			611.3			614.1	(0.4	)

Asset impairments			1.7			-			(1.7	)		-			-	NM

Earnings from operations			43.7			1.3			1.7			# 46.7			60.3	(22.6	)

Other expense, net			3.9			-			-			3.9			1.8	(118.3	)

Earnings from continuing operations before taxes			39.8			1.3			1.7			42.8			58.5	(27.0	)

Income tax expense (benefit)			(1.9	)		0.1			-			(1.8	)		19.9	(109.4	)

Earnings from continuing operations		$	41.7		$	1.2		$	1.7		$	44.6		$	38.6	(15.5	)%

Earnings per share from continuing operations:
	Basic	$	1.09		$	0.03		$	0.04		$	1.17		$	1.02	14.7	%
	Diluted	$	1.09		$	0.03		$	0.04		$	1.17		$	1.02	14.7	%


		2012
		As reported			Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services		$	4,075.1		$	-		$	4,075.1

Cost of services			3,400.7			-			3,400.7

Gross profit			674.4			-			674.4

Selling, general and administrative expenses			611.9			2.2			614.1

Earnings from operations			62.5			(2.2	)		60.3

Other expense, net			1.8			-			1.8

Earnings from continuing operations before taxes			60.7			(2.2	)		58.5

Income tax expense (benefit)			19.9			-			19.9

Earnings from continuing operations		$	40.8		$	(2.2	)	$	38.6

Earnings per share from continuing operations:
	Basic	$	1.07		$	(0.06	)	$	1.02
	Diluted	$	1.07		$	(0.06	)	$	1.02

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equalthe 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 and asset impairment charges is useful to understand the Company's fiscal 2013 financial performance and increases comparability. Specifically, Management believes that excluding these items allows for a more meaningful comparison of current period operating performance with the operating results of prior periods. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1)	In 2013, restructuring charges relate to severance costs from exiting the executive search business in Germany, along with severance costs for EMEA Commercial branches that closed in prior years. In 2012, restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.

(2)	Asset impairment charges represent the write-off of the carrying value of long-lived assets related to the decision to exit the executive search business operating in Germany.

ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com

MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com

Marketwired

November 6, 2013 - 7:30 AM EST

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Kelly Services(R) Reports 3rd Quarter Results

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