DELAWARE | 0-1088 | 38-1510762 |
(State or other | (Commission | (IRS Employer |
jurisdiction of | File Number) | Identification |
incorporation) | Number) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
KELLY SERVICES, INC. | ||
November 4, 2015 | ||
/s/ Olivier G. Thirot Olivier G. Thirot Senior Vice President and Acting Chief Financial Officer (Principal Financial Officer) |
November 4, 2015 | ||
/s/ Laura S. Lockhart Laura S. Lockhart Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer) |
Exhibit No. | Description |
99.1 | Press Release dated November 4, 2015 |
99.2 | Presentation materials for November 4, 2015 conference call |
• | Earnings from operations up 51%, excluding restructuring (up 72% in constant currency) |
• | Earnings per share of $0.23 versus $0.10, excluding restructuring, a 130% increase year-over-year |
• | OCG segment revenue up 15% year-over-year (up 17% in constant currency) |
• | Total Company revenue down 3% year-over-year (up 3% in constant currency) |
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 27, 2015 AND SEPTEMBER 28, 2014 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
% | CC % | |||||||||||||||
2015 | 2014 | Change | Change | Change | ||||||||||||
Revenue from services | $ | 1,351.0 | $ | 1,396.4 | $ | (45.4 | ) | (3.2 | ) | % | 3.0 | % | ||||
Cost of services | 1,122.8 | 1,171.0 | (48.2 | ) | (4.1 | ) | ||||||||||
Gross profit | 228.2 | 225.4 | 2.8 | 1.3 | 7.2 | |||||||||||
Selling, general and administrative expenses | 211.6 | 218.3 | (6.7 | ) | (3.0 | ) | 2.0 | |||||||||
Earnings from operations | 16.6 | 7.1 | 9.5 | 134.9 | ||||||||||||
Other expense, net | — | 2.2 | (2.2 | ) | (97.7 | ) | ||||||||||
Earnings before taxes | 16.6 | 4.9 | 11.7 | 242.2 | ||||||||||||
Income tax expense | 7.5 | 3.5 | 4.0 | 112.6 | ||||||||||||
Net earnings | $ | 9.1 | $ | 1.4 | $ | 7.7 | NM | % | ||||||||
Basic earnings per share | $ | 0.23 | $ | 0.03 | $ | 0.20 | NM | % | ||||||||
Diluted earnings per share | $ | 0.23 | $ | 0.03 | $ | 0.20 | NM | % | ||||||||
STATISTICS: | ||||||||||||||||
Gross profit rate | 16.9 | % | 16.1 | % | 0.8 | pts. | ||||||||||
Selling, general and administrative expenses: | ||||||||||||||||
% of revenue | 15.7 | 15.6 | 0.1 | |||||||||||||
% of gross profit | 92.7 | 96.9 | (4.2 | ) | ||||||||||||
% Return: | ||||||||||||||||
Earnings from operations | 1.2 | 0.5 | 0.7 | |||||||||||||
Earnings before taxes | 1.2 | 0.3 | 0.9 | |||||||||||||
Net earnings | 0.7 | 0.1 | 0.6 | |||||||||||||
Effective income tax rate | 45.2 | % | 72.7 | % | (27.5 | ) | pts. | |||||||||
Average number of shares outstanding (millions): | ||||||||||||||||
Basic | 37.9 | 37.6 | ||||||||||||||
Diluted | 37.9 | 37.6 | ||||||||||||||
Shares adjusted for nonvested restricted awards (millions): | ||||||||||||||||
Basic | 38.8 | 38.5 | ||||||||||||||
Diluted | 38.8 | 38.5 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
% | CC % | |||||||||||||||
2015 | 2014 | Change | Change | Change | ||||||||||||
Revenue from services | $ | 4,056.6 | $ | 4,137.7 | $ | (81.1 | ) | (2.0 | ) | % | 3.7 | % | ||||
Cost of services | 3,385.8 | 3,461.9 | (76.1 | ) | (2.2 | ) | ||||||||||
Gross profit | 670.8 | 675.8 | (5.0 | ) | (0.7 | ) | 4.6 | |||||||||
Selling, general and administrative expenses | 630.6 | 656.5 | (25.9 | ) | (4.0 | ) | 0.9 | |||||||||
Earnings from operations | 40.2 | 19.3 | 20.9 | 110.9 | ||||||||||||
Other expense, net | 3.5 | 4.2 | (0.7 | ) | (14.5 | ) | ||||||||||
Earnings before taxes | 36.7 | 15.1 | 21.6 | 145.7 | ||||||||||||
Income tax expense | 17.1 | 8.4 | 8.7 | 104.4 | ||||||||||||
Net earnings | $ | 19.6 | $ | 6.7 | $ | 12.9 | 198.2 | % | ||||||||
Basic earnings per share | $ | 0.51 | $ | 0.17 | $ | 0.34 | 200.0 | % | ||||||||
Diluted earnings per share | $ | 0.51 | $ | 0.17 | $ | 0.34 | 200.0 | % | ||||||||
STATISTICS: | ||||||||||||||||
Gross profit rate | 16.5 | % | 16.3 | % | 0.2 | pts. | ||||||||||
Selling, general and administrative expenses: | ||||||||||||||||
% of revenue | 15.5 | 15.9 | (0.4 | ) | ||||||||||||
% of gross profit | 94.0 | 97.2 | (3.2 | ) | ||||||||||||
% Return: | ||||||||||||||||
Earnings from operations | 1.0 | 0.5 | 0.5 | |||||||||||||
Earnings before taxes | 0.9 | 0.4 | 0.5 | |||||||||||||
Net earnings | 0.5 | 0.2 | 0.3 | |||||||||||||
Effective income tax rate | 46.5 | % | 55.9 | % | (9.4 | ) | pts. | |||||||||
Average number of shares outstanding (millions): | ||||||||||||||||
Basic | 37.8 | 37.5 | ||||||||||||||
Diluted | 37.8 | 37.5 | ||||||||||||||
Shares adjusted for nonvested restricted awards (millions): | ||||||||||||||||
Basic | 38.8 | 38.5 | ||||||||||||||
Diluted | 38.8 | 38.5 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
Third Quarter | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2015 | 2014 | Change | Change | |||||||||||
AMERICAS | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 615.5 | $ | 640.8 | (4.0 | ) | % | (1.1 | ) | % | ||||
Staffing fee-based income included in revenue from services | 3.8 | 3.8 | (0.1 | ) | 2.8 | |||||||||
Gross profit | 96.6 | 91.7 | 5.4 | 7.9 | ||||||||||
Gross profit rate | 15.7 | % | 14.3 | % | 1.4 | pts. | ||||||||
PT | ||||||||||||||
Revenue from services | $ | 242.8 | $ | 242.5 | 0.1 | % | 0.6 | % | ||||||
Staffing fee-based income included in revenue from services | 4.7 | 4.4 | 8.6 | 9.7 | ||||||||||
Gross profit | 41.0 | 39.6 | 3.6 | 4.1 | ||||||||||
Gross profit rate | 16.9 | % | 16.3 | % | 0.6 | pts. | ||||||||
Total Americas | ||||||||||||||
Revenue from services | $ | 858.3 | $ | 883.3 | (2.8 | ) | % | (0.6 | ) | % | ||||
Staffing fee-based income included in revenue from services | 8.5 | 8.2 | 4.6 | 6.5 | ||||||||||
Gross profit | 137.6 | 131.3 | 4.8 | 6.7 | ||||||||||
Total SG&A expenses | 113.7 | 110.8 | 2.6 | 4.5 | ||||||||||
Earnings from operations | 23.9 | 20.5 | 16.9 | |||||||||||
Gross profit rate | 16.0 | % | 14.9 | % | 1.1 | pts. | ||||||||
Expense rates: | ||||||||||||||
% of revenue | 13.2 | 12.5 | 0.7 | |||||||||||
% of gross profit | 82.7 | 84.5 | (1.8 | ) | ||||||||||
Return on sales | 2.8 | 2.3 | 0.5 | |||||||||||
EMEA | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 199.0 | $ | 231.3 | (13.9 | ) | % | 2.6 | % | |||||
Staffing fee-based income included in revenue from services | 3.2 | 4.2 | (23.6 | ) | (4.5 | ) | ||||||||
Gross profit | 27.7 | 33.6 | (17.4 | ) | (1.4 | ) | ||||||||
Gross profit rate | 13.9 | % | 14.5 | % | (0.6 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 43.6 | $ | 48.1 | (9.3 | ) | % | 7.5 | % | |||||
Staffing fee-based income included in revenue from services | 2.6 | 3.5 | (24.1 | ) | (6.2 | ) | ||||||||
Gross profit | 9.4 | 10.9 | (13.3 | ) | 4.6 | |||||||||
Gross profit rate | 21.6 | % | 22.6 | % | (1.0 | ) | pts. | |||||||
Total EMEA | ||||||||||||||
Revenue from services | $ | 242.6 | $ | 279.4 | (13.1 | ) | % | 3.5 | % | |||||
Staffing fee-based income included in revenue from services | 5.8 | 7.7 | (23.8 | ) | (5.3 | ) | ||||||||
Gross profit | 37.1 | 44.5 | (16.4 | ) | 0.1 | |||||||||
Total SG&A expenses | 31.8 | 40.0 | (20.7 | ) | (6.2 | ) | ||||||||
Earnings from operations | 5.3 | 4.5 | 22.4 | |||||||||||
Gross profit rate | 15.3 | % | 15.9 | % | (0.6 | ) | pts. | |||||||
Expense rates: | ||||||||||||||
% of revenue | 13.1 | 14.3 | (1.2 | ) | ||||||||||
% of gross profit | 85.4 | 90.0 | (4.6 | ) | ||||||||||
Return on sales | 2.2 | 1.6 | 0.6 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
Third Quarter | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2015 | 2014 | Change | Change | |||||||||||
APAC | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 83.2 | $ | 91.0 | (8.5 | ) | % | 9.2 | % | |||||
Staffing fee-based income included in revenue from services | 1.4 | 2.0 | (28.5 | ) | (16.7 | ) | ||||||||
Gross profit | 10.7 | 11.7 | (8.5 | ) | 9.1 | |||||||||
Gross profit rate | 12.8 | % | 12.8 | % | — | pts. | ||||||||
PT | ||||||||||||||
Revenue from services | $ | 9.9 | $ | 10.6 | (6.4 | ) | % | 11.8 | % | |||||
Staffing fee-based income included in revenue from services | 1.3 | 2.0 | (34.3 | ) | (22.6 | ) | ||||||||
Gross profit | 2.5 | 3.3 | (24.6 | ) | (10.8 | ) | ||||||||
Gross profit rate | 25.4 | % | 31.5 | % | (6.1 | ) | pts. | |||||||
Total APAC | ||||||||||||||
Revenue from services | $ | 93.1 | $ | 101.6 | (8.3 | ) | % | 9.5 | % | |||||
Staffing fee-based income included in revenue from services | 2.7 | 4.0 | (31.4 | ) | (19.7 | ) | ||||||||
Gross profit | 13.2 | 15.0 | (12.1 | ) | 4.7 | |||||||||
SG&A expenses excluding restructuring charges | 11.1 | 14.2 | (21.6 | ) | ||||||||||
Restructuring charges | — | 0.3 | (100.0 | ) | ||||||||||
Total SG&A expenses | 11.1 | 14.5 | (23.2 | ) | (8.8 | ) | ||||||||
Earnings from operations | 2.1 | 0.5 | 297.9 | |||||||||||
Earnings from operations excluding restructuring charges | 2.1 | 0.8 | 154.9 | |||||||||||
Gross profit rate | 14.2 | % | 14.8 | % | (0.6 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 11.9 | 14.0 | (2.1 | ) | ||||||||||
% of gross profit | 84.3 | 94.6 | (10.3 | ) | ||||||||||
Return on sales (excluding restructuring charges) | 2.2 | 0.8 | 1.4 | |||||||||||
OCG | ||||||||||||||
Revenue from services | $ | 171.8 | $ | 149.8 | 14.7 | % | 16.8 | % | ||||||
Gross profit | 41.4 | 35.8 | 15.5 | 18.4 | ||||||||||
Total SG&A expenses | 33.2 | 32.2 | 3.2 | 6.3 | ||||||||||
Earnings from operations | 8.2 | 3.6 | 123.7 | |||||||||||
Gross profit rate | 24.1 | % | 23.9 | % | 0.2 | pts. | ||||||||
Expense rates: | ||||||||||||||
% of revenue | 19.3 | 21.5 | (2.2 | ) | ||||||||||
% of gross profit | 80.2 | 89.8 | (9.6 | ) | ||||||||||
Return on sales | 4.8 | 2.4 | 2.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
September Year to Date | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2015 | 2014 | Change | Change | |||||||||||
AMERICAS | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 1,908.2 | $ | 1,915.1 | (0.4 | ) | % | 1.8 | % | |||||
Staffing fee-based income included in revenue from services | 10.8 | 10.4 | 3.4 | 6.0 | ||||||||||
Gross profit | 290.3 | 280.0 | 3.7 | 5.6 | ||||||||||
Gross profit rate | 15.2 | % | 14.6 | % | 0.6 | pts. | ||||||||
PT | ||||||||||||||
Revenue from services | $ | 721.8 | $ | 723.1 | (0.2 | ) | % | 0.2 | % | |||||
Staffing fee-based income included in revenue from services | 13.1 | 11.7 | 11.7 | 12.6 | ||||||||||
Gross profit | 122.0 | 118.4 | 3.1 | 3.6 | ||||||||||
Gross profit rate | 16.9 | % | 16.4 | % | 0.5 | pts. | ||||||||
Total Americas | ||||||||||||||
Revenue from services | $ | 2,630.0 | $ | 2,638.2 | (0.3 | ) | % | 1.4 | % | |||||
Staffing fee-based income included in revenue from services | 23.9 | 22.1 | 7.7 | 9.5 | ||||||||||
Gross profit | 412.3 | 398.4 | 3.5 | 5.0 | ||||||||||
Total SG&A expenses | 339.8 | 332.9 | 2.0 | 3.5 | ||||||||||
Earnings from operations | 72.5 | 65.5 | 11.0 | |||||||||||
Gross profit rate | 15.7 | % | 15.1 | % | 0.6 | pts. | ||||||||
Expense rates: | ||||||||||||||
% of revenue | 12.9 | 12.6 | 0.3 | |||||||||||
% of gross profit | 82.4 | 83.6 | (1.2 | ) | ||||||||||
Return on sales | 2.8 | 2.5 | 0.3 | |||||||||||
EMEA | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 573.0 | $ | 690.2 | (17.0 | ) | % | 0.3 | % | |||||
Staffing fee-based income included in revenue from services | 9.9 | 14.0 | (29.2 | ) | (11.0 | ) | ||||||||
Gross profit | 79.1 | 101.0 | (21.7 | ) | (5.4 | ) | ||||||||
Gross profit rate | 13.8 | % | 14.6 | % | (0.8 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 126.8 | $ | 145.5 | (12.8 | ) | % | 4.7 | % | |||||
Staffing fee-based income included in revenue from services | 7.7 | 10.7 | (27.7 | ) | (10.2 | ) | ||||||||
Gross profit | 27.2 | 33.3 | (18.1 | ) | (0.4 | ) | ||||||||
Gross profit rate | 21.5 | % | 22.8 | % | (1.3 | ) | pts. | |||||||
Total EMEA | ||||||||||||||
Revenue from services | $ | 699.8 | $ | 835.7 | (16.3 | ) | % | 1.1 | % | |||||
Staffing fee-based income included in revenue from services | 17.6 | 24.7 | (28.5 | ) | (10.7 | ) | ||||||||
Gross profit | 106.3 | 134.3 | (20.8 | ) | (4.1 | ) | ||||||||
SG&A expenses excluding restructuring charges | 99.5 | 124.2 | (19.9 | ) | ||||||||||
Restructuring charges | — | 0.8 | (100.0 | ) | ||||||||||
Total SG&A expenses | 99.5 | 125.0 | (20.4 | ) | (4.7 | ) | ||||||||
Earnings from operations | 6.8 | 9.3 | (25.5 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 6.8 | 10.1 | (31.5 | ) | ||||||||||
Gross profit rate | 15.2 | % | 16.1 | % | (0.9 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 14.2 | 14.9 | (0.7 | ) | ||||||||||
% of gross profit | 93.5 | 92.5 | 1.0 | |||||||||||
Return on sales (excluding restructuring charges) | 1.0 | 1.2 | (0.2 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
September Year to Date | ||||||||||||||
Constant | ||||||||||||||
Currency | ||||||||||||||
2015 | 2014 | Change | Change | |||||||||||
APAC | ||||||||||||||
Commercial | ||||||||||||||
Revenue from services | $ | 259.1 | $ | 260.5 | (0.5 | ) | % | 13.1 | % | |||||
Staffing fee-based income included in revenue from services | 4.7 | 5.9 | (20.3 | ) | (10.8 | ) | ||||||||
Gross profit | 34.9 | 35.7 | (2.2 | ) | 10.8 | |||||||||
Gross profit rate | 13.5 | % | 13.7 | % | (0.2 | ) | pts. | |||||||
PT | ||||||||||||||
Revenue from services | $ | 30.7 | $ | 29.2 | 5.4 | % | 20.5 | % | ||||||
Staffing fee-based income included in revenue from services | 4.4 | 5.8 | (23.7 | ) | (14.6 | ) | ||||||||
Gross profit | 8.1 | 9.4 | (13.6 | ) | (2.4 | ) | ||||||||
Gross profit rate | 26.4 | % | 32.2 | % | (5.8 | ) | pts. | |||||||
Total APAC | ||||||||||||||
Revenue from services | $ | 289.8 | $ | 289.7 | 0.1 | % | 13.8 | % | ||||||
Staffing fee-based income included in revenue from services | 9.1 | 11.7 | (22.0 | ) | (12.7 | ) | ||||||||
Gross profit | 43.0 | 45.1 | (4.6 | ) | 8.0 | |||||||||
SG&A expenses excluding restructuring charges | 35.5 | 43.3 | (18.0 | ) | ||||||||||
Restructuring charges | — | 1.3 | (100.0 | ) | ||||||||||
Total SG&A expenses | 35.5 | 44.6 | (20.5 | ) | (10.1 | ) | ||||||||
Earnings from operations | 7.5 | 0.5 | NM | |||||||||||
Earnings from operations excluding restructuring charges | 7.5 | 1.8 | 338.5 | |||||||||||
Gross profit rate | 14.8 | % | 15.6 | % | (0.8 | ) | pts. | |||||||
Expense rates (excluding restructuring charges): | ||||||||||||||
% of revenue | 12.3 | 15.0 | (2.7 | ) | ||||||||||
% of gross profit | 82.7 | 96.2 | (13.5 | ) | ||||||||||
Return on sales (excluding restructuring charges) | 2.6 | 0.6 | 2.0 | |||||||||||
OCG | ||||||||||||||
Revenue from services | $ | 486.3 | $ | 422.1 | 15.2 | % | 17.0 | % | ||||||
Gross profit | 112.6 | 101.3 | 11.1 | 13.4 | ||||||||||
Total SG&A expenses | 98.1 | 94.7 | 3.6 | 6.4 | ||||||||||
Earnings from operations | 14.5 | 6.6 | 116.7 | |||||||||||
Gross profit rate | 23.1 | % | 24.0 | % | (0.9 | ) | pts. | |||||||
Expense rates: | ||||||||||||||
% of revenue | 20.2 | 22.4 | (2.2 | ) | ||||||||||
% of gross profit | 87.1 | 93.4 | (6.3 | ) | ||||||||||
Return on sales | 3.0 | 1.6 | 1.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars) | ||||||||||
September 27, 2015 | December 28, 2014 | September 28, 2014 | ||||||||
Current Assets | ||||||||||
Cash and equivalents | $ | 44.9 | $ | 83.1 | $ | 51.6 | ||||
Trade accounts receivable, less allowances of | ||||||||||
$9.7, $10.7 and $9.2, respectively | 1,160.3 | 1,122.8 | 1,158.1 | |||||||
Prepaid expenses and other current assets | 49.0 | 47.9 | 56.8 | |||||||
Deferred taxes | 35.0 | 34.4 | 28.9 | |||||||
Total current assets | 1,289.2 | 1,288.2 | 1,295.4 | |||||||
Property and Equipment, Net | 88.3 | 93.0 | 91.1 | |||||||
Noncurrent Deferred Taxes | 140.8 | 146.3 | 132.7 | |||||||
Goodwill, Net | 90.3 | 90.3 | 90.3 | |||||||
Other Assets | 341.3 | 300.1 | 291.5 | |||||||
Total Assets | $ | 1,949.9 | $ | 1,917.9 | $ | 1,901.0 | ||||
Current Liabilities | ||||||||||
Short-term borrowings | $ | 76.8 | $ | 91.9 | $ | 88.7 | ||||
Accounts payable and accrued liabilities | 385.2 | 364.0 | 339.0 | |||||||
Accrued payroll and related taxes | 312.8 | 308.5 | 318.6 | |||||||
Accrued insurance | 25.9 | 26.9 | 24.4 | |||||||
Income and other taxes | 59.5 | 68.8 | 74.0 | |||||||
Total current liabilities | 860.2 | 860.1 | 844.7 | |||||||
Noncurrent Liabilities | ||||||||||
Accrued insurance | 42.2 | 43.9 | 43.4 | |||||||
Accrued retirement benefits | 139.5 | 140.8 | 146.6 | |||||||
Other long-term liabilities | 48.4 | 39.4 | 40.7 | |||||||
Total noncurrent liabilities | 230.1 | 224.1 | 230.7 | |||||||
Stockholders' Equity | ||||||||||
Common stock | 40.1 | 40.1 | 40.1 | |||||||
Treasury stock | (46.9 | ) | (49.8 | ) | (52.5 | ) | ||||
Paid-in capital | 26.7 | 24.9 | 26.7 | |||||||
Earnings invested in the business | 781.3 | 767.4 | 752.3 | |||||||
Accumulated other comprehensive income | 58.4 | 51.1 | 59.0 | |||||||
Total stockholders' equity | 859.6 | 833.7 | 825.6 | |||||||
Total Liabilities and Stockholders' Equity | $ | 1,949.9 | $ | 1,917.9 | $ | 1,901.0 | ||||
STATISTICS: | ||||||||||
Working Capital | $ | 429.0 | $ | 428.1 | $ | 450.7 | ||||
Current Ratio | 1.5 | 1.5 | 1.5 | |||||||
Debt-to-capital % | 8.2 | % | 9.9 | % | 9.7 | % | ||||
Global Days Sales Outstanding | 57 | 54 | 58 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014 | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
2015 | 2014 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 19.6 | $ | 6.7 | ||
Noncash adjustments: | ||||||
Depreciation and amortization | 16.6 | 16.2 | ||||
Provision for bad debts | 3.3 | 3.6 | ||||
Stock-based compensation | 4.6 | 4.1 | ||||
Other, net | (0.7 | ) | 1.3 | |||
Changes in operating assets and liabilities | (44.9 | ) | (140.9 | ) | ||
Net cash used in operating activities | (1.5 | ) | (109.0 | ) | ||
Cash flows from investing activities: | ||||||
Capital expenditures | (12.3 | ) | (15.0 | ) | ||
Investment in equity affiliate | (0.5 | ) | (5.4 | ) | ||
Other investing activities | (0.4 | ) | 0.2 | |||
Net cash used in investing activities | (13.2 | ) | (20.2 | ) | ||
Cash flows from financing activities: | ||||||
Net change in short-term borrowings | (13.8 | ) | 60.4 | |||
Dividend payments | (5.7 | ) | (5.7 | ) | ||
Other financing activities | 0.2 | 0.4 | ||||
Net cash (used in) from financing activities | (19.3 | ) | 55.1 | |||
Effect of exchange rates on cash and equivalents | (4.2 | ) | — | |||
Net change in cash and equivalents | (38.2 | ) | (74.1 | ) | ||
Cash and equivalents at beginning of period | 83.1 | 125.7 | ||||
Cash and equivalents at end of period | $ | 44.9 | $ | 51.6 | ||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
Third Quarter (Commercial, PT and OCG) | |||||||||||||
% Change | |||||||||||||
Constant | |||||||||||||
2015 | 2014 | US$ | Currency | ||||||||||
Americas | |||||||||||||
United States | $ | 899.8 | $ | 873.7 | 3.0 | % | 3.0 | % | |||||
Canada | 37.9 | 51.9 | (27.0 | ) | (12.6 | ) | |||||||
Mexico | 31.3 | 37.0 | (15.2 | ) | 6.1 | ||||||||
Puerto Rico | 23.8 | 25.7 | (7.5 | ) | (7.5 | ) | |||||||
Brazil | 10.4 | 13.6 | (23.5 | ) | 11.4 | ||||||||
Total Americas | 1,003.2 | 1,001.9 | 0.1 | 2.1 | |||||||||
EMEA | |||||||||||||
France | 63.1 | 70.1 | (10.0 | ) | 7.4 | ||||||||
Switzerland | 58.0 | 66.7 | (13.0 | ) | (8.2 | ) | |||||||
Portugal | 33.5 | 33.3 | 0.8 | 20.2 | |||||||||
United Kingdom | 27.7 | 26.2 | 5.7 | 14.0 | |||||||||
Russia | 17.0 | 28.7 | (40.6 | ) | 2.9 | ||||||||
Germany | 15.4 | 17.5 | (12.1 | ) | 4.8 | ||||||||
Italy | 14.0 | 14.8 | (5.5 | ) | 12.6 | ||||||||
Norway | 10.1 | 14.8 | (31.8 | ) | (10.5 | ) | |||||||
Other | 11.5 | 15.8 | (27.1 | ) | (13.2 | ) | |||||||
Total EMEA | 250.3 | 287.9 | (13.1 | ) | 3.5 | ||||||||
APAC | |||||||||||||
Singapore | 32.6 | 33.4 | (2.3 | ) | 8.5 | ||||||||
Australia | 28.8 | 32.3 | (10.7 | ) | 13.8 | ||||||||
Malaysia | 14.0 | 16.7 | (16.1 | ) | 6.0 | ||||||||
New Zealand | 9.4 | 12.7 | (26.4 | ) | (4.7 | ) | |||||||
Other | 12.7 | 11.5 | 10.4 | 20.9 | |||||||||
Total APAC | 97.5 | 106.6 | (8.5 | ) | 9.5 | ||||||||
Total Kelly Services, Inc. | $ | 1,351.0 | $ | 1,396.4 | (3.2 | ) | % | 3.0 | % | ||||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
September Year to Date (Commercial, PT and OCG) | |||||||||||||
% Change | |||||||||||||
Constant | |||||||||||||
2015 | 2014 | US$ | Currency | ||||||||||
Americas | |||||||||||||
United States | $ | 2,706.4 | $ | 2,601.9 | 4.0 | % | 4.0 | % | |||||
Canada | 122.2 | 148.2 | (17.5 | ) | (5.5 | ) | |||||||
Mexico | 95.2 | 102.3 | (6.9 | ) | 10.4 | ||||||||
Puerto Rico | 75.2 | 78.4 | (4.0 | ) | (4.0 | ) | |||||||
Brazil | 34.2 | 43.2 | (20.8 | ) | 2.8 | ||||||||
Total Americas | 3,033.2 | 2,974.0 | 2.0 | 3.5 | |||||||||
EMEA | |||||||||||||
France | 180.4 | 202.2 | (10.8 | ) | 8.4 | ||||||||
Switzerland | 160.7 | 195.7 | (17.9 | ) | (12.9 | ) | |||||||
Portugal | 98.7 | 92.4 | 6.9 | 29.9 | |||||||||
United Kingdom | 78.4 | 82.4 | (4.8 | ) | 3.7 | ||||||||
Russia | 57.4 | 96.4 | (40.4 | ) | (0.9 | ) | |||||||
Germany | 43.1 | 50.7 | (15.0 | ) | 3.1 | ||||||||
Italy | 39.5 | 46.3 | (14.6 | ) | 3.6 | ||||||||
Norway | 29.5 | 43.6 | (32.5 | ) | (12.8 | ) | |||||||
Other | 32.8 | 50.9 | (35.6 | ) | (21.8 | ) | |||||||
Total EMEA | 720.5 | 860.6 | (16.3 | ) | 0.9 | ||||||||
APAC | |||||||||||||
Singapore | 96.9 | 94.8 | 2.3 | 10.9 | |||||||||
Australia | 92.1 | 88.8 | 3.8 | 24.8 | |||||||||
Malaysia | 45.4 | 50.0 | (9.3 | ) | 5.2 | ||||||||
New Zealand | 30.2 | 38.2 | (21.1 | ) | (6.1 | ) | |||||||
Other | 38.3 | 31.3 | 22.4 | 29.7 | |||||||||
Total APAC | 302.9 | 303.1 | (0.1 | ) | 13.8 | ||||||||
Total Kelly Services, Inc. | $ | 4,056.6 | $ | 4,137.7 | (2.0 | ) | % | 3.7 | % | ||||
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2015 AND SEPTEMBER 28, 2014 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
2015 | 2014 | |||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | Adjusted Earnings | % Change | ||||||||||||
Revenue from services | $ | 1,351.0 | $ | — | $ | 1,351.0 | $ | 1,396.4 | (3.2 | ) | % | |||||
Cost of services | 1,122.8 | — | 1,122.8 | 1,171.0 | (4.1 | ) | ||||||||||
Gross profit | 228.2 | — | 228.2 | 225.4 | 1.3 | |||||||||||
SG&A expenses | 211.6 | — | 211.6 | 214.3 | (1.2 | ) | ||||||||||
Earnings from operations | 16.6 | — | 16.6 | 11.1 | 50.7 | |||||||||||
Other expense, net | — | — | — | 2.2 | (97.7 | ) | ||||||||||
Earnings before taxes | 16.6 | — | 16.6 | 8.9 | 88.3 | |||||||||||
Inc. tax expense (benefit) | 7.5 | — | 7.5 | 5.0 | 48.8 | |||||||||||
Net earnings | $ | 9.1 | $ | — | $ | 9.1 | $ | 3.9 | 141.1 | % | ||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.23 | $ | — | $ | 0.23 | $ | 0.10 | 130.0 | % | ||||||
Diluted | $ | 0.23 | $ | — | $ | 0.23 | $ | 0.10 | 130.0 | % | ||||||
2014 | ||||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | ||||||||||||||
Revenue from services | $ | 1,396.4 | $ | — | $ | 1,396.4 | ||||||||||
Cost of services | 1,171.0 | — | 1,171.0 | |||||||||||||
Gross profit | 225.4 | — | 225.4 | |||||||||||||
SG&A expenses | 218.3 | (4.0 | ) | 214.3 | ||||||||||||
Earnings from operations | 7.1 | 4.0 | 11.1 | |||||||||||||
Other expense, net | 2.2 | — | 2.2 | |||||||||||||
Earnings before taxes | 4.9 | 4.0 | 8.9 | |||||||||||||
Inc. tax expense (benefit) | 3.5 | 1.5 | 5.0 | |||||||||||||
Net earnings | $ | 1.4 | $ | 2.5 | $ | 3.9 | ||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.06 | $ | 0.10 | ||||||||||
Diluted | $ | 0.03 | $ | 0.06 | $ | 0.10 | ||||||||||
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 27, 2015 AND SEPTEMBER 28, 2014 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
2015 | 2014 | |||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | Adjusted Earnings | % Change | ||||||||||||
Revenue from services | $ | 4,056.6 | $ | — | $ | 4,056.6 | $ | 4,137.7 | (2.0 | ) | % | |||||
Cost of services | 3,385.8 | — | 3,385.8 | 3,461.9 | (2.2 | ) | ||||||||||
Gross profit | 670.8 | — | 670.8 | 675.8 | (0.7 | ) | ||||||||||
SG&A expenses | 630.6 | — | 630.6 | 650.7 | (3.1 | ) | ||||||||||
Earnings from operations | 40.2 | — | 40.2 | 25.1 | 61.6 | |||||||||||
Other expense, net | 3.5 | — | 3.5 | 4.2 | (14.5 | ) | ||||||||||
Earnings before taxes | 36.7 | — | 36.7 | 20.9 | 76.7 | |||||||||||
Inc. tax expense (benefit) | 17.1 | — | 17.1 | 10.5 | 62.4 | |||||||||||
Net earnings | $ | 19.6 | $ | — | $ | 19.6 | $ | 10.4 | 91.4 | % | ||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.51 | $ | — | $ | 0.51 | $ | 0.27 | 88.9 | % | ||||||
Diluted | $ | 0.51 | $ | — | $ | 0.51 | $ | 0.27 | 88.9 | % | ||||||
2014 | ||||||||||||||||
As reported | Restructuring Charges (Note 1) | Adjusted Earnings | ||||||||||||||
Revenue from services | $ | 4,137.7 | $ | — | $ | 4,137.7 | ||||||||||
Cost of services | 3,461.9 | — | 3,461.9 | |||||||||||||
Gross profit | 675.8 | — | 675.8 | |||||||||||||
SG&A expenses | 656.5 | (5.8 | ) | 650.7 | ||||||||||||
Earnings from operations | 19.3 | 5.8 | 25.1 | |||||||||||||
Other expense, net | 4.2 | — | 4.2 | |||||||||||||
Earnings before taxes | 15.1 | 5.8 | 20.9 | |||||||||||||
Inc. tax expense (benefit) | 8.4 | 2.1 | 10.5 | |||||||||||||
Net earnings | $ | 6.7 | $ | 3.7 | $ | 10.4 | ||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.17 | $ | 0.10 | $ | 0.27 | ||||||||||
Diluted | $ | 0.17 | $ | 0.10 | $ | 0.27 | ||||||||||
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. | ||||||||||||||||
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