8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 8, 2017

KELLY SERVICES, INC.

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(Exact name of Registrant as specified in its charter)

DELAWARE	0-1088	38-1510762
(State or other	(Commission	(IRS Employer
jurisdiction of	File Number)	Identification
incorporation)		Number)

999 WEST BIG BEAVER ROAD, TROY, MICHIGAN 48084

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(Address of principal executive offices)

(Zip Code)

(248) 362-4444

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(Registrant's telephone number, including area code)

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))

1

Item 2.02. Results of Operations and Financial Condition

Kelly Services, Inc. (the “Company”) today released financial information containing highlighted financial data for the three and nine months ended October 1, 2017. A copy of the press release is attached as exhibit 99.1 herein.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1    Press Release dated November 8, 2017.

99.2    Presentation materials for November 8, 2017 conference call.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	KELLY SERVICES, INC.
November 8, 2017
	/s/ Olivier G. Thirot Olivier G. Thirot Senior Vice President and Chief Financial Officer (Principal Financial Officer)

November 8, 2017
	/s/ Laura S. Lockhart Laura S. Lockhart  Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated November 8, 2017
99.2	Presentation materials for November 8, 2017 conference call

4

EX-99.1

Exhibit 99.1

KELLY SERVICES^® REPORTS

THIRD QUARTER 2017 EARNINGS

Financial Highlights

• Q3 revenue up 6.5%, up 5.3% in constant currency

• Q3 operating earnings of $18.2 million, down 3%

• Q3 earnings per share of $0.58 compared to $2.06, or $0.44 on an adjusted basis, a 32% increase year-over-year on an adjusted basis.

TROY, MI (November 8, 2017) -- Kelly Services (Nasdaq: KELYA) (Nasdaq: KELYB), a global leader in providing workforce solutions, today announced results for the third quarter of 2017.

George S. Corona, President and Chief Executive Officer, announced revenue for the third quarter of 2017 totaled $1.3 billion, a 6.5% increase, or 5.3% in constant currency, compared to the corresponding quarter of 2016.

Earnings from operations for the third quarter of 2017 totaled $18.2 million, compared to $18.8 million reported for the third quarter of 2016.     

Diluted earnings per share in the third quarter of 2017 were $0.58 compared to $2.06 per share in the third quarter of 2016. During the third quarter of 2016, Kelly transferred its APAC staffing operations to the TS Kelly Asia Pacific joint venture and recorded a pre-tax gain of $87.2 million. Kelly retains a 49% ownership interest in the joint venture. Diluted earnings per share in the third quarter of 2016 include the $1.62 after-tax gain on the APAC JV transaction. Excluding the after-tax gain from 2016 third quarter results, adjusted earnings per share were $0.44 in the third quarter of 2016.

Reflecting on the results, Corona stated, “Our third quarter performance confirmed that we are continuing to drive top-line growth and shareholder value, even as we invest in talent, technology, and solutions to accelerate our progress. Our acquisition of Teachers On Call and our decision to implement a digital talent platform confirm that we are not content to stop at short-term growth, and we are strategically positioning Kelly for long-term success as the world of work evolves.”

Kelly also reported that on November 7, its board of directors declared a dividend of $0.075 per share. The dividend is payable December 7, 2017 to shareholders of record as of the close of business on November 22, 2017.

In conjunction with its third 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 November 8 to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Internet:

Kellyservices.com

Via the Telephone:

U.S. 1 800 288-9626

International 1 651 291-5254

The pass code is Kelly Services

1

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 and disruptions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, the risk our intellectual property 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 including TS Kelly Asia Pacific, material changes in demand from or loss of large corporate customers as well as changes in their buying practices, 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, risks arising from failure to preserve the privacy of information entrusted to us or to meet our obligations under global privacy laws, the risk of cyber attacks or other breaches of network or information technology security, 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, unemployment compensation, disability and medical benefit plans, 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, KELYB) and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Kelly® directly employs nearly 500,000 people around the world in addition to having a role in connecting thousands more with work through its global network of talent suppliers and partners. Revenue in 2016 was $5.3 billion.  Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KLYA-FIN

# # #

ANALYST CONTACT: MEDIA CONTACT:

James Polehna Jane Stehney    

(248) 244-4586 (248) 244-5630

james_polehna@kellyservices.com jane_stehney@kellyservices.com

2

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED OCTOBER 1, 2017 AND OCTOBER 2, 2016
(UNAUDITED)
(In millions of dollars except per share data)
											%			CC %
		2017			2016			Change			Change			Change
Revenue from services	$	1,328.8		$	1,247.8		$	81.0			6.5		%	5.3	%
Cost of services		1,098.1			1,032.7			65.4			6.3
Gross profit		230.7			215.1			15.6			7.3			6.2
Selling, general and administrative expenses		212.5			196.3			16.2			8.3			7.3
Earnings from operations		18.2			18.8			(0.6	)		(2.9	)
Gain on investment in TS Kelly Asia Pacific		—			87.2			(87.2	)		NM
Other expense, net		(0.4	)		(0.4	)		—			(4.8	)
Earnings before taxes and equity in net earnings (loss) of affiliate		17.8			105.6			(87.8	)		(83.1	)
Income tax (benefit) expense		(4.1	)		24.7			(28.8	)		(116.5	)
Net earnings before equity in net earnings (loss) of affiliate		21.9			80.9			(59.0	)		(72.9	)
Equity in net earnings (loss) of affiliate		1.1			—			1.1			NM
Net earnings	$	23.0		$	80.9		$	(57.9	)		(71.5	)	%
Basic earnings per share	$	0.59		$	2.08		$	(1.49	)		(71.6	)	%
Diluted earnings per share	$	0.58		$	2.06		$	(1.48	)		(71.8	)	%
STATISTICS:
Staffing fee-based income (included in revenue from services)	$	14.2		$	13.2		$	1.0			6.9		%	4.1	%
Gross profit rate		17.4		%	17.2		%	0.2		pts.
Conversion rate		7.9			8.7			(0.8	)
% Return:
Earnings from operations		1.4			1.5			(0.1	)
Net earnings		1.7			6.5			(4.8	)
Effective income tax rate		(22.9	)	%	23.4		%	(46.3	)	pts.
Average number of shares outstanding (millions):
Basic		38.3			38.1
Diluted		38.8			38.4

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KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED OCTOBER 1, 2017 AND OCTOBER 2, 2016
(UNAUDITED)
(In millions of dollars except per share data)
											%			CC %
		2017			2016			Change			Change			Change
Revenue from services	$	3,952.1		$	3,972.4		$	(20.3	)		(0.5	)	%	(0.7	)	%
Cost of services		3,261.0			3,294.1			(33.1	)		(1.0	)
Gross profit		691.1			678.3			12.8			1.9			1.7
Selling, general and administrative expenses		636.2			634.9			1.3			0.2			0.1
Earnings from operations		54.9			43.4			11.5			26.5
Gain on investment in TS Kelly Asia Pacific		—			87.2			(87.2	)		NM
Other expense, net		(2.5	)		(1.3	)		(1.2	)		(91.7	)
Earnings before taxes and equity in net earnings (loss) of affiliate		52.4			129.3			(76.9	)		(59.5	)
Income tax expense		0.1			28.2			(28.1	)		(99.6	)
Net earnings before equity in net earnings (loss) of affiliate		52.3			101.1			(48.8	)		(48.3	)
Equity in net earnings (loss) of affiliate		1.6			(0.1	)		1.7			NM
Net earnings	$	53.9		$	101.0		$	(47.1	)		(46.7	)	%
Basic earnings per share	$	1.38		$	2.59		$	(1.21	)		(46.7	)	%
Diluted earnings per share	$	1.37		$	2.58		$	(1.21	)		(46.9	)	%
STATISTICS:
Staffing fee-based income (included in revenue from services)	$	41.4		$	46.3		$	(4.9	)		(10.8	)	%	(11.7	)	%
Gross profit rate		17.5		%	17.1		%	0.4		pts.
Conversion rate		7.9			6.4			1.5
% Return:
Earnings from operations		1.4			1.1			0.3
Net earnings		1.4			2.5			(1.1	)
Effective income tax rate		0.2		%	21.8		%	(21.6	)	pts.
Average number of shares outstanding (millions):
Basic		38.3			38.0
Diluted		38.8			38.3

4

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
		Third Quarter
							%			CC %
		2017			2016		Change			Change
AMERICAS STAFFING
Revenue from services	$	554.8		$	518.2		7.1		%	6.6	%
Gross profit		98.8			95.0		4.1			3.7
Total SG&A expenses		85.5			80.7		6.0			5.6
Earnings from operations		13.3			14.3		(6.7	)
Gross profit rate		17.8	%		18.3	%	(0.5	)	pts.
Conversion rate		13.5			15.0		(1.5	)
Return on sales		2.4			2.8		(0.4	)
GLOBAL TALENT SOLUTIONS
Revenue from services	$	503.0		$	495.0		1.6		%	1.3	%
Gross profit		93.0			86.2		7.9			7.6
Total SG&A expenses		72.2			70.2		2.8			2.5
Earnings from operations		20.8			16.0		30.3
Gross profit rate		18.5	%		17.4	%	1.1		pts.
Conversion rate		22.4			18.5		3.9
Return on sales		4.1			3.2		0.9
INTERNATIONAL STAFFING
Revenue from services	$	275.6		$	239.3		15.2		%	10.4	%
Gross profit		39.5			35.0		12.7			7.7
Total SG&A expenses		32.3			30.5		6.1			1.9
Earnings from operations		7.2			4.5		57.0
Gross profit rate		14.3	%		14.7	%	(0.4	)	pts.
Conversion rate		18.0			12.9		5.1
Return on sales		2.6			1.9		0.7

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KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
		September Year to Date
							%			CC %
		2017			2016		Change			Change
AMERICAS STAFFING
Revenue from services	$	1,703.5		$	1,614.7		5.5		%	5.3		%
Gross profit		307.9			292.9		5.1			5.0
SG&A expenses excluding restructuring charges		252.6			244.1		3.5			3.4
Restructuring charges		0.4			1.8		(80.0	)		(79.8	)
Total SG&A expenses		253.0			245.9		2.9			2.8
Earnings from operations		54.9			47.0		16.8
Earnings from operations excluding restructuring charges		55.3			48.8		13.2
Gross profit rate		18.1	%		18.1	%	—		pts.
Conversion rate		17.8			16.1		1.7
Conversion rate excluding restructuring charges		18.0			16.7		1.3
Return on sales		3.2			2.9		0.3
Return on sales excluding restructuring charges		3.2			3.0		0.2
GLOBAL TALENT SOLUTIONS
Revenue from services	$	1,495.8		$	1,486.5		0.6		%	0.6		%
Gross profit		272.2			257.2		5.8			5.9
SG&A expenses excluding restructuring charges		218.8			213.2		2.6			2.7
Restructuring charges		2.0			0.4		415.5			417.6
Total SG&A expenses		220.8			213.6		3.4			3.5
Earnings from operations		51.4			43.6		18.0
Earnings from operations excluding restructuring charges		53.4			44.0		21.5
Gross profit rate		18.2	%		17.3	%	0.9		pts.
Conversion rate		18.9			16.9		2.0
Conversion rate excluding restructuring charges		19.6			17.1		2.5
Return on sales		3.4			2.9		0.5
Return on sales excluding restructuring charges		3.6			3.0		0.6
INTERNATIONAL STAFFING
Revenue from services	$	766.0		$	885.6		(13.5	)	%	(14.0	)	%
Gross profit		112.7			131.4		(14.2	)		(14.8	)
SG&A expenses excluding restructuring charges		96.2			115.1		(16.4	)		(16.8	)
Restructuring charges		—			1.2		(100.0	)		(100.0	)
Total SG&A expenses		96.2			116.3		(17.2	)		(17.6	)
Earnings from operations		16.5			15.1		9.1
Earnings from operations excluding restructuring charges		16.5			16.3		1.6
Gross profit rate		14.7	%		14.8	%	(0.1	)	pts.
Conversion rate		14.6			11.5		3.1
Conversion rate excluding restructuring charges		14.6			12.3		2.3
Return on sales		2.2			1.7		0.5
Return on sales excluding restructuring charges		2.2			1.8		0.4

6

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
		October 1, 2017			Jan. 1, 2017			October 2, 2016
Current Assets
Cash and equivalents	$	22.2		$	29.6		$	27.6
Trade accounts receivable, less allowances of
$13.1, $12.5 and $11.1, respectively		1,271.7			1,138.3			1,125.8
Prepaid expenses and other current assets		70.0			46.7			53.0
Total current assets		1,363.9			1,214.6			1,206.4
Noncurrent Assets
Property and equipment, net		81.4			80.8			80.5
Deferred taxes		192.0			180.1			179.8
Goodwill		107.1			88.4			88.4
Investment in equity affiliate		116.4			114.8			113.6
Other assets		475.9			349.4			370.6
Total noncurrent assets		972.8			813.5			832.9
Total Assets	$	2,336.7		$	2,028.1		$	2,039.3
Current Liabilities
Short-term borrowings	$	23.9		$	—		$	8.7
Accounts payable and accrued liabilities		496.1			455.1			408.7
Accrued payroll and related taxes		312.6			241.5			276.9
Accrued insurance		25.6			23.4			26.8
Income and other taxes		60.0			51.1			56.9
Total current liabilities		918.2			771.1			778.0
Noncurrent Liabilities
Accrued insurance		49.7			45.5			40.2
Accrued retirement benefits		175.0			157.4			153.9
Other long-term liabilities		66.8			42.1			50.7
Total noncurrent liabilities		291.5			245.0			244.8
Stockholders' Equity
Common stock		40.1			40.1			40.1
Treasury stock		(35.2	)		(39.0	)		(39.1	)
Paid-in capital		30.0			28.6			26.2
Earnings invested in the business		968.8			923.6			906.8
Accumulated other comprehensive income		123.3			58.7			82.5
Total stockholders' equity		1,127.0			1,012.0			1,016.5
Total Liabilities and Stockholders' Equity	$	2,336.7		$	2,028.1		$	2,039.3
STATISTICS:
Working Capital	$	445.7		$	443.5		$	428.4
Current Ratio		1.5			1.6			1.6
Debt-to-capital %		2.1		%	—		%	0.9		%
Global Days Sales Outstanding		58			53			56
Year-to-Date Free Cash Flow	$	18.2		$	26.9		$	20.4

7

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED OCTOBER 1, 2017 AND OCTOBER 2, 2016
(UNAUDITED)
(In millions of dollars)
		2017			2016
Cash flows from operating activities:
Net earnings	$	53.9		$	101.0
Noncash adjustments:
Depreciation and amortization		16.5			16.0
Provision for bad debts		3.6			6.1
Stock-based compensation		6.8			7.6
Gain on investment in TS Kelly Asia Pacific equity affiliate		—			(87.2	)
Other, net		(2.3	)		(2.2	)
Changes in operating assets and liabilities, net of acquisition		(45.6	)		(13.1	)
Net cash from operating activities		32.9			28.2
Cash flows from investing activities:
Capital expenditures		(14.7	)		(7.8	)
Acquisition of company, net of cash received		(37.2	)		—
Net cash proceeds from investment in TS Kelly Asia Pacific equity affiliate		—			18.8
Proceeds from repayment of loan to TS Kelly equity affiliate		0.6			—
Other investing activities		—			(0.4	)
Net cash (used in) from investing activities		(51.3	)		10.6
Cash flows from financing activities:
Net change in short-term borrowings		23.9			(47.8	)
Dividend payments		(8.7	)		(7.7	)
Payments of tax withholding for restricted shares		(1.7	)		(2.1	)
Other financing activities		(0.1	)		0.4
Net cash from (used in) financing activities		13.4			(57.2	)
Effect of exchange rates on cash and equivalents		(2.4	)		3.8
Net change in cash and equivalents		(7.4	)		(14.6	)
Cash and equivalents at beginning of period		29.6			42.2
Cash and equivalents at end of period	$	22.2		$	27.6

8

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
		Third Quarter (Americas, International and GTS)
					%			CC %
		2017		2016	Change			Change
Americas
United States	$	941.1	$	900.3	4.5		%	4.5		%
Canada		37.1		34.9	6.2			1.9
Mexico		32.9		27.6	19.4			13.3
Puerto Rico		15.9		20.9	(23.8	)		(23.8	)
Brazil		12.3		13.3	(7.4	)		(9.4	)
Total Americas		1,039.3		997.0	4.2			3.9
EMEA
France		73.0		60.8	20.1			14.1
Switzerland		59.1		55.0	7.4			6.0
Portugal		46.0		39.2	17.5			11.6
United Kingdom		23.3		19.5	19.1			19.5
Russia		22.5		18.4	22.4			11.6
Italy		15.9		13.6	17.1			11.1
Germany		15.5		14.2	8.5			3.0
Norway		8.9		8.4	7.2			2.5
Ireland		8.3		7.7	8.1			2.6
Other		12.1		9.7	25.0			18.4
Total EMEA		284.6		246.5	15.5			10.7
Total APAC		4.9		4.3	12.6			8.8
Total Kelly Services, Inc.	$	1,328.8	$	1,247.8	6.5		%	5.3		%

9

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
		September Year to Date (Americas, International and GTS)
					%			CC %
		2017		2016	Change			Change
Americas
United States	$	2,866.8	$	2,765.8	3.7		%	3.7		%
Canada		105.8		105.2	0.6			(0.5	)
Mexico		85.0		79.6	6.8			9.1
Puerto Rico		51.2		65.9	(22.3	)		(22.3	)
Brazil		38.3		33.5	14.3			1.6
Total Americas		3,147.1		3,050.0	3.2			3.1
EMEA
France		202.1		178.6	13.2			13.3
Switzerland		161.3		156.2	3.3			3.6
Portugal		124.0		111.6	11.1			11.2
Russia		69.3		49.0	41.5			21.5
United Kingdom		64.3		66.2	(2.9	)		5.7
Italy		45.3		42.1	7.6			7.7
Germany		43.3		45.3	(4.5	)		(4.3	)
Norway		24.9		24.4	2.2			1.0
Ireland		23.4		18.1	295.0			29.8
Other		33.5		27.8	20.7			20.5
Total EMEA		791.4		719.3	10.0			9.6
Total APAC		13.6		203.1	(93.3	)		(13.1	)
Total Kelly Services, Inc.	$	3,952.1	$	3,972.4	(0.5	)	%	(0.7	)	%

10

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 AND 39 WEEKS ENDED OCTOBER 1, 2017 AND OCTOBER 2, 2016
(UNAUDITED)
(In millions of dollars except per share data)
	Third Quarter				September Year to Date
	2017		2016		2017		2016
Revenue from services	$	1,328.8	$	1,247.8	$	3,952.1	$	3,972.4
Disposal of APAC businesses (Note 1)	—		—		—		(191.1		)
Adjusted revenue from services	$	1,328.8	$	1,247.8	$	3,952.1	$	3,781.3
	Third Quarter				September Year to Date
	2017		2016		2017		2016
Gross profit	$	230.7	$	215.1	$	691.1	$	678.3
Disposal of APAC businesses (Note 1)	—		—		—		(30.2		)
Adjusted gross profit	$	230.7	$	215.1	$	691.1	$	648.1
	Third Quarter				September Year to Date
	2017		2016		2017		2016
Earnings from operations	$	18.2	$	18.8	$	54.9	$	43.4
Disposal of APAC businesses (Note 1)	—		—		—		(5.9		)
Restructuring charges (Note 2)	—		—		2.4		3.4
Adjusted earnings from operations	$	18.2	$	18.8	$	57.3	$	40.9

	Third Quarter
	2017				2016
	Amount		Per Share		Amount			Per Share
Net earnings	$	23.0	$	0.58	$	80.9		$	2.06
Gain on investment in equity affiliate, net of taxes (Note 3)	—		—		(63.7		)	(1.62		)
Adjusted net earnings	$	23.0	$	0.58	$	17.2		$	0.44
	September Year to Date
	2017				2016
	Amount		Per Share		Amount			Per Share
Net earnings	$	53.9	$	1.37	$	101.0		$	2.58
Disposal of APAC businesses (Note 1)	—		—		(4.5		)	(0.12		)
Restructuring charges, net of taxes (Note 2)	1.7		0.04		2.5			0.07
Gain on investment in equity affiliate, net of taxes (Note 3)	—		—		(63.7		)	(1.63		)
Adjusted net earnings	$	55.6	$	1.41	$	35.3		$	0.90

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.

11

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2016 disposal of APAC businesses, 2017 and 2016 restructuring charges and the 2016 gain on investment of equity affiliate is useful to understand the Company's fiscal 2017 financial performance and increases comparability. Specifically, Management believes that removing the impact of 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) Disposal of APAC businesses represents the 2016 operational results of business contributed to TS Kelly Asia Pacific in the third quarter of 2016.

(2) Restructuring charges in 2017 represent costs related primarily to optimizing our GTS service delivery models to deliver expected cost savings. Restructuring charges in 2016 include costs related to actions taken in the Americas and International regions designed to increase operational efficiency and align our staffing operations with opportunities for growth within their markets.

(3) Gain on investment in equity affiliate represents the difference between the fair value and book value of amounts contributed by the Company to the investment in TS Kelly Asia Pacific in the third quarter of 2016.

12

EX-99.2

Kelly Services, Inc. Third Quarter November 8, 2017 Exhibit 99.2

Safe Harbor Statement 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. 2

Third Quarter 2017 Highlights (YOY Comparisons)  Total revenue increased 6.5% – Increased 5.3% on a constant currency basis  Gross profit up 7.3% – up 6.2% on a constant currency basis  Earnings from operations of $18.2 million, down 3%  Diluted earnings per share of $0.58, compared to $2.06 per share last year – Excluding $1.62 after-tax gain on APAC JV transaction in 2016, diluted earnings per share up $0.14, a 32% increase 3

 Revenue increase reflects solid growth in Americas and International Staffing  Continued GP rate improvement reflects on-going structural progress, as we move to higher margin solutions in GTS, partially offset by margin rate declines in Americas and International Staffing due to business mix  Earnings from operations reflects solid GP growth, offset by the addition of resources to support market opportunities and higher performance based incentives  Excluding the impact of the gain on APAC JV transaction, EPS improved by $0.14 or 32% ----- (1)Constant Currency represent year-over-year changes resulting from translating 2017 financial data into USD using 2016 exchange rates. (2)Change includes $87.2 million gain on investment, $63.7 million net of income taxes expense or $1.62 per share, in 2016. Third Quarter 2017 Financial Summary 4 Actual Results Change Constant Currency Change(1) Reve ue $1.3B 6.5% 5.3% GP % 17.4% 20 bps Earnings from Operations $18.2M (2.9)% (6.0)% ROS % 1.4% (10) bps EPS(2) $0.58 ($1.48)

 Americas staffing revenues reflect continued solid top-line growth, primarily in light industrial staffing  International staffing delivered strong growth across the regions in Europe Third Quarter 2017 Revenue Growth 5 42% 21% 38% Business Mix Americas Staffing International Staffing Global Talent Solutions 0% 10% 20% 30% Total Americas Staffing International Staffing Global Talent Solutions YoY Growth Reported Constant Currency

Third Quarter 2017 Gross Profit Growth  Americas staffing and International staffing GP progress reflects top-line growth, partially offset by GP rate declines due to changes in business mix  GTS GP increase reflects solid GP rate improvement on modest revenue growth 6 43% 17% 40% Business Mix Americas Staffing International Staffing Global Talent Solutions 0% 5% 10% 15% Total Americas Staffing International Staffing Global Talent Solutions YoY Growth Reported Constant Currency

17.2% 17.4% 16.0% 16.2% 16.4% 16.6% 16.8% 17.0% 17.2% 17.4% 17.6% Q3 2016 GP Rate Americas Staffing International Staffing Global Talent Solutions Perm Fees Q3 2017 GP Rate Third Quarter 2017 Gross Profit Rate  Favorable impacts include an improving GP rate due to an improved mix of higher margin solutions in GTS and higher perm fees, primarily in International Staffing  Americas Staffing and International temporary staffing rate declines due to changes in business mix -10 bps 40 bps 7 -20 bps 10 bps

$196 $213 $180 $185 $190 $195 $200 $205 $210 $215 Q3 2016 SG&A International Staffing FX Americas Staffing Corporate Global Talent Solutions Q3 2017 SG&A Third Quarter 2017 SG&A  Corporate expenses primarily reflect higher performance based compensation expense and additional litigation related expenses  Americas Staffing expenses were up due to additional sales resources to capitalize on market opportunities and increased performance based compensation expenses $1 $2 $5 $2 $ in Millions $7 8

Third Quarter 2017 Conversion Rate ----- (1)Conversion rate represents earnings from operations as a percent of gross profit, or return on gross profit.  Americas Staffing conversion rate reflects additional resources to capitalize on market opportunities  GTS improved by 390 bps and reflects impact of an improving GP rate and cost management efforts  International staffing conversion rate improvement reflect strong GP growth combined with effective cost management  Total Company conversion rate is also impacted by higher Corporate performance based incentive expenses and additional litigation related expenses $ in Millions 9 2017 2016 Gross Earnings Conversion Gross Earnings Conversion Change Profit from Ops Rate(1) Profit from Ops Rate(1) (bps) Americas Staffing 98.8$ 13.3$ 13.5% 95.0$ 14.3$ 15.0% (150) Global Talent Solutions 93.0 20.8 22.4% 86.2 16.0 18.5% 390 International Staffing 39.5 7.2 18.0% 35.0 4.5 12.9% 510 Total Company 230.7$ 18.2$ 7.9% 215.1$ 18.8$ 8.7% (80) ----- (1)Conversion rate represents earnings from operations as a percent of gross profit, or return on gross profit.

$500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 2016 Q3 2016 2017 Q3 Accounts Receivable Third Quarter 2017 Balance Sheet Data 10  DSO is up 2 days versus the same period last year, and up 5 days from year end 2016. Q3 DSO reflects a seasonal increase related in our educational staffing business and the start of the school year  Quarter end debt was $24 million and reflects our cash paid for the Teachers On Call acquisition $ in Millions DSO 56 53 58 Debt-to- 0.9% 0.0% 2.1% Equity Ratio $0 $20 $40 2016 Q3 2016 2017 Q3 Debt (and Debt-to-Equity Ratio)

2017 Outlook – Fourth Quarter  Revenue up 8% to 9% YOY – 200 basis point improvement due to currency – 120 basis point impact from acquisition of Teachers On Call  Gross profit rate consistent YOY  SG&A up 4.5% to 5.5% YOY – Approximately half of increase is a result of higher performance based incentive compensation expenses and acquisition of Teachers On Call  Annual tax rate in mid-single digits 11

Teachers On Call acquisition  Stock purchase completed on September 5, 2017  Teachers On Call is a U.S. based provider of substitute teacher staffing services for K-12 public, private, and charter schools, and early child care centers focused on the upper mid-west  Complements Kelly Educational Staffing geographic and service footprint  Expands on Kelly’s existing leading position in the U.S. educational staffing market 12