(State or other | (Commission | (IRS Employer |
jurisdiction of | File Number) | Identification |
incorporation) | Number) |
Title of each class | Trading Symbols | Name of each exchange on which registered |
Exhibit No. | Description |
Press Release dated August 7, 2019. | |
Presentation materials for August 7, 2019 conference call. | |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
KELLY SERVICES, INC. | ||
August 7, 2019 | ||
/s/ Olivier G. Thirot Olivier G. Thirot Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
August 7, 2019 | ||
/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 August 7, 2019. |
99.2 | Presentation materials for August 7, 2019 conference call. |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
• | Q2 revenue down 1.4%; down 0.2% in constant currency |
• | Q2 operating earnings up 71% from last year, up 10% excluding the gain on sale of assets |
• | Q2 earnings per share of $2.12 compared to a loss of $0.40, or $0.72 compared to $0.54 last year on an adjusted basis |
U.S. | 1 800 288-9626 |
International | 1 651 291-5254 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
FOR THE 13 WEEKS ENDED JUNE 30, 2019 AND JULY 1, 2018 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
% | CC % | |||||||||||||||
2019 | 2018 | Change | Change | Change | ||||||||||||
Revenue from services | $ | 1,367.5 | $ | 1,386.9 | $ | (19.4 | ) | (1.4 | ) | % | (0.2 | ) | % | |||
Cost of services | 1,123.5 | 1,146.4 | (22.9 | ) | (2.0 | ) | ||||||||||
Gross profit | 244.0 | 240.5 | 3.5 | 1.4 | 2.6 | |||||||||||
Selling, general and administrative expenses | 221.5 | 220.1 | 1.4 | 0.6 | 1.6 | |||||||||||
Gain on sale of assets | 12.3 | — | 12.3 | NM | ||||||||||||
Earnings from operations | 34.8 | 20.4 | 14.4 | 70.7 | ||||||||||||
Gain (loss) on investment in Persol Holdings | 61.2 | (52.5 | ) | 113.7 | NM | |||||||||||
Other income (expense), net | 0.2 | 0.6 | (0.4 | ) | (51.7 | ) | ||||||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 96.2 | (31.5 | ) | 127.7 | NM | |||||||||||
Income tax expense (benefit) | 12.7 | (15.6 | ) | 28.3 | 181.3 | |||||||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | 83.5 | (15.9 | ) | 99.4 | NM | |||||||||||
Equity in net earnings (loss) of affiliate | 0.3 | 0.5 | (0.2 | ) | (29.1 | ) | ||||||||||
Net earnings (loss) | $ | 83.8 | $ | (15.4 | ) | $ | 99.2 | NM | ||||||||
Basic earnings (loss) per share | $ | 2.12 | $ | (0.40 | ) | $ | 2.52 | NM | ||||||||
Diluted earnings (loss) per share | $ | 2.12 | $ | (0.40 | ) | $ | 2.52 | NM | ||||||||
STATISTICS: | ||||||||||||||||
Permanent placement income (included in revenue from services) | $ | 15.7 | $ | 17.3 | $ | (1.6 | ) | (9.7 | ) | % | (7.5 | ) | % | |||
Gross profit rate | 17.8 | % | 17.3 | % | 0.5 | pts. | ||||||||||
Conversion rate | 14.2 | 8.5 | 5.7 | |||||||||||||
% Return: | ||||||||||||||||
Earnings from operations | 2.5 | 1.5 | 1.0 | |||||||||||||
Net earnings (loss) | 6.1 | (1.1 | ) | 7.2 | ||||||||||||
Effective income tax rate | 13.2 | % | 49.6 | % | (36.4 | ) | pts. | |||||||||
Average number of shares outstanding (millions): | ||||||||||||||||
Basic | 39.1 | 38.8 | ||||||||||||||
Diluted | 39.2 | 38.8 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
FOR THE 26 WEEKS ENDED JUNE 30, 2019 AND JULY 1, 2018 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
% | CC % | |||||||||||||||
2019 | 2018 | Change | Change | Change | ||||||||||||
Revenue from services | $ | 2,750.1 | $ | 2,756.8 | $ | (6.7 | ) | (0.2 | ) | % | 1.3 | % | ||||
Cost of services | 2,254.5 | 2,278.1 | (23.6 | ) | (1.0 | ) | ||||||||||
Gross profit | 495.6 | 478.7 | 16.9 | 3.5 | 4.9 | |||||||||||
Selling, general and administrative expenses | 456.3 | 446.3 | 10.0 | 2.2 | 3.6 | |||||||||||
Gain on sale of assets | 12.3 | — | 12.3 | NM | ||||||||||||
Earnings from operations | 51.6 | 32.4 | 19.2 | 59.3 | ||||||||||||
Gain (loss) on investment in Persol Holdings | 74.4 | (28.8 | ) | 103.2 | NM | |||||||||||
Other income (expense), net | (0.9 | ) | (1.1 | ) | 0.2 | 13.7 | ||||||||||
Earnings before taxes and equity in net earnings (loss) of affiliate | 125.1 | 2.5 | 122.6 | NM | ||||||||||||
Income tax expense (benefit) | 19.1 | (9.2 | ) | 28.3 | 307.2 | |||||||||||
Net earnings before equity in net earnings (loss) of affiliate | 106.0 | 11.7 | 94.3 | NM | ||||||||||||
Equity in net earnings (loss) of affiliate | (0.1 | ) | 2.0 | (2.1 | ) | (101.1 | ) | |||||||||
Net earnings | $ | 105.9 | $ | 13.7 | $ | 92.2 | NM | |||||||||
Basic earnings per share | $ | 2.69 | $ | 0.35 | $ | 2.34 | NM | |||||||||
Diluted earnings per share | $ | 2.68 | $ | 0.35 | $ | 2.33 | NM | |||||||||
STATISTICS: | ||||||||||||||||
Permanent placement income (included in revenue from services) | $ | 31.6 | $ | 33.9 | $ | (2.3 | ) | (6.8 | ) | % | (3.8 | ) | % | |||
Gross profit rate | 18.0 | % | 17.4 | % | 0.6 | pts. | ||||||||||
Conversion rate | 10.4 | 6.8 | 3.6 | |||||||||||||
% Return: | ||||||||||||||||
Earnings from operations | 1.9 | 1.2 | 0.7 | |||||||||||||
Net earnings | 3.9 | 0.5 | 3.4 | |||||||||||||
Effective income tax rate | 15.3 | % | (366.2 | ) | % | 381.5 | pts. | |||||||||
Average number of shares outstanding (millions): | ||||||||||||||||
Basic | 39.0 | 38.7 | ||||||||||||||
Diluted | 39.2 | 38.8 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
Second Quarter | ||||||||||||||
% | CC % | |||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Americas Staffing | ||||||||||||||
Revenue from services | $ | 597.6 | $ | 604.0 | (1.0 | ) | % | (0.9 | ) | % | ||||
Gross profit | 108.8 | 108.5 | 0.2 | 0.4 | ||||||||||
SG&A expenses excluding restructuring charges | 93.8 | 90.7 | 3.4 | 3.6 | ||||||||||
Restructuring charges | (0.6 | ) | — | NM | NM | |||||||||
Total SG&A expenses | 93.2 | 90.7 | 2.7 | 3.0 | ||||||||||
Earnings from operations | 15.6 | 17.8 | (12.4 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 15.0 | 17.8 | (15.8 | ) | ||||||||||
Gross profit rate | 18.2 | % | 18.0 | % | 0.2 | pts. | ||||||||
Conversion rate | 14.3 | 16.4 | (2.1 | ) | ||||||||||
Conversion rate excluding restructuring charges | 13.8 | 16.4 | (2.6 | ) | ||||||||||
Return on sales | 2.6 | 2.9 | (0.3 | ) | ||||||||||
Return on sales excluding restructuring charges | 2.5 | 2.9 | (0.4 | ) | ||||||||||
Global Talent Solutions | ||||||||||||||
Revenue from services | $ | 505.9 | $ | 500.7 | 1.0 | % | 1.4 | % | ||||||
Gross profit | 99.7 | 92.7 | 7.5 | 8.2 | ||||||||||
Total SG&A expenses | 74.3 | 75.0 | (0.9 | ) | (0.2 | ) | ||||||||
Earnings from operations | 25.4 | 17.7 | 43.0 | |||||||||||
Gross profit rate | 19.7 | % | 18.5 | % | 1.2 | pts. | ||||||||
Conversion rate | 25.4 | 19.1 | 6.3 | |||||||||||
Return on sales | 5.0 | 3.5 | 1.5 | |||||||||||
International Staffing | ||||||||||||||
Revenue from services | $ | 268.1 | $ | 286.6 | (6.5 | ) | % | (1.8 | ) | % | ||||
Gross profit | 36.1 | 39.9 | (9.4 | ) | (4.8 | ) | ||||||||
Total SG&A expenses | 32.6 | 33.5 | (2.6 | ) | 1.9 | |||||||||
Earnings from operations | 3.5 | 6.4 | (44.8 | ) | ||||||||||
Gross profit rate | 13.5 | % | 13.9 | % | (0.4 | ) | pts. | |||||||
Conversion rate | 9.7 | 16.0 | (6.3 | ) | ||||||||||
Return on sales | 1.3 | 2.2 | (0.9 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||
RESULTS OF OPERATIONS BY SEGMENT | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In millions of dollars) | ||||||||||||||
June Year to Date | ||||||||||||||
% | CC % | |||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Americas Staffing | ||||||||||||||
Revenue from services | $ | 1,224.1 | $ | 1,208.3 | 1.3 | % | 1.6 | % | ||||||
Gross profit | 226.0 | 216.5 | 4.4 | 4.7 | ||||||||||
SG&A expenses excluding restructuring charges | 188.7 | 182.6 | 3.3 | 3.6 | ||||||||||
Restructuring charges | 5.7 | — | NM | NM | ||||||||||
Total SG&A expenses | 194.4 | 182.6 | 6.4 | 6.8 | ||||||||||
Earnings from operations | 31.6 | 33.9 | (6.6 | ) | ||||||||||
Earnings from operations excluding restructuring charges | 37.3 | 33.9 | 10.2 | |||||||||||
Gross profit rate | 18.5 | % | 17.9 | % | 0.6 | pts. | ||||||||
Conversion rate | 14.0 | 15.6 | (1.6 | ) | ||||||||||
Conversion rate excluding restructuring charges | 16.5 | 15.6 | 0.9 | |||||||||||
Return on sales | 2.6 | 2.8 | (0.2 | ) | ||||||||||
Return on sales excluding restructuring charges | 3.1 | 2.8 | 0.3 | |||||||||||
Global Talent Solutions | ||||||||||||||
Revenue from services | $ | 1,006.9 | $ | 986.5 | 2.1 | % | 2.5 | % | ||||||
Gross profit | 200.1 | 184.5 | 8.5 | 9.3 | ||||||||||
Total SG&A expenses | 149.0 | 150.8 | (1.2 | ) | (0.4 | ) | ||||||||
Earnings from operations | 51.1 | 33.7 | 51.4 | |||||||||||
Gross profit rate | 19.9 | % | 18.7 | % | 1.2 | pts. | ||||||||
Conversion rate | 25.5 | 18.3 | 7.2 | |||||||||||
Return on sales | 5.1 | 3.4 | 1.7 | |||||||||||
International Staffing | ||||||||||||||
Revenue from services | $ | 527.0 | $ | 571.3 | (7.8 | ) | % | (1.6 | ) | % | ||||
Gross profit | 70.7 | 79.0 | (10.5 | ) | (4.5 | ) | ||||||||
Total SG&A expenses | 63.9 | 67.6 | (5.5 | ) | 0.4 | |||||||||
Earnings from operations | 6.8 | 11.4 | (40.0 | ) | ||||||||||
Gross profit rate | 13.4 | % | 13.8 | % | (0.4 | ) | pts. | |||||||
Conversion rate | 9.6 | 14.4 | (4.8 | ) | ||||||||||
Return on sales | 1.3 | 2.0 | (0.7 | ) |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(UNAUDITED) | ||||||||||
(In millions of dollars) | ||||||||||
June 30, 2019 | Dec. 30, 2018 | July 1, 2018 | ||||||||
Current Assets | ||||||||||
Cash and equivalents | $ | 37.2 | $ | 35.3 | $ | 33.9 | ||||
Trade accounts receivable, less allowances of | ||||||||||
$12.1, $13.2, and $13.1, respectively | 1,273.6 | 1,293.3 | 1,248.9 | |||||||
Prepaid expenses and other current assets | 82.1 | 71.9 | 64.5 | |||||||
Total current assets | 1,392.9 | 1,400.5 | 1,347.3 | |||||||
Noncurrent Assets | ||||||||||
Property and equipment, net | 83.4 | 86.3 | 84.7 | |||||||
Operating lease right-of-use assets | 66.9 | — | — | |||||||
Deferred taxes | 217.5 | 198.7 | 191.7 | |||||||
Goodwill | 127.8 | 107.3 | 107.3 | |||||||
Investment in Persol Holdings | 213.7 | 135.1 | 203.2 | |||||||
Investment in equity affiliate | 122.0 | 121.3 | 122.0 | |||||||
Other assets | 318.1 | 265.2 | 278.4 | |||||||
Total noncurrent assets | 1,149.4 | 913.9 | 987.3 | |||||||
Total Assets | $ | 2,542.3 | $ | 2,314.4 | $ | 2,334.6 | ||||
Current Liabilities | ||||||||||
Short-term borrowings | $ | 19.3 | $ | 2.2 | $ | 1.7 | ||||
Accounts payable and accrued liabilities | 513.7 | 540.6 | 505.5 | |||||||
Operating lease liabilities | 20.3 | — | — | |||||||
Accrued payroll and related taxes | 283.5 | 266.0 | 284.7 | |||||||
Accrued workers' compensation and other claims | 25.1 | 26.0 | 25.3 | |||||||
Income and other taxes | 69.2 | 62.7 | 60.7 | |||||||
Total current liabilities | 931.1 | 897.5 | 877.9 | |||||||
Noncurrent Liabilities | ||||||||||
Operating lease liabilities | 49.3 | — | — | |||||||
Accrued workers' compensation and other claims | 48.8 | 50.5 | 49.2 | |||||||
Accrued retirement benefits | 178.0 | 162.9 | 182.2 | |||||||
Other long-term liabilities | 66.9 | 44.0 | 64.4 | |||||||
Total noncurrent liabilities | 343.0 | 257.4 | 295.8 | |||||||
Stockholders' Equity | ||||||||||
Common stock | 40.1 | 40.1 | 40.1 | |||||||
Treasury stock | (21.5 | ) | (26.0 | ) | (27.4 | ) | ||||
Paid-in capital | 23.2 | 24.4 | 23.4 | |||||||
Earnings invested in the business | 1,238.1 | 1,138.1 | 1,134.8 | |||||||
Accumulated other comprehensive income (loss) | (11.7 | ) | (17.1 | ) | (10.0 | ) | ||||
Total stockholders' equity | 1,268.2 | 1,159.5 | 1,160.9 | |||||||
Total Liabilities and Stockholders' Equity | $ | 2,542.3 | $ | 2,314.4 | $ | 2,334.6 | ||||
STATISTICS: | ||||||||||
Working Capital | $ | 461.8 | $ | 503.0 | $ | 469.4 | ||||
Current Ratio | 1.5 | 1.6 | 1.5 | |||||||
Debt-to-capital % | 1.5 | % | 0.2 | % | 0.1 | % | ||||
Global Days Sales Outstanding | 57 | 55 | 55 | |||||||
Year-to-Date Free Cash Flow | $ | 64.8 | $ | 35.8 | $ | 22.9 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE 26 WEEKS ENDED JUNE 30, 2019 AND JULY 1, 2018 | ||||||
(UNAUDITED) | ||||||
(In millions of dollars) | ||||||
2019 | 2018 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 105.9 | $ | 13.7 | ||
Adjustments to reconcile net earnings to net cash from operating activities: | ||||||
Depreciation and amortization | 15.6 | 12.9 | ||||
Operating lease asset amortization | 11.5 | — | ||||
Provision for bad debts | 1.8 | 1.5 | ||||
Stock-based compensation | 5.2 | 4.7 | ||||
(Gain) loss on investment in Persol Holdings | (74.4 | ) | 28.8 | |||
(Gain) loss on sale of assets | (12.3 | ) | — | |||
Equity in net (earnings) loss of PersolKelly Asia Pacific | 0.1 | (2.0 | ) | |||
Other, net | (0.6 | ) | (0.6 | ) | ||
Changes in operating assets and liabilities, net of acquisitions | 20.7 | (25.8 | ) | |||
Net cash from operating activities | 73.5 | 33.2 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (8.7 | ) | (10.3 | ) | ||
Acquisition of companies, net of cash received | (86.4 | ) | — | |||
Proceeds from sale of assets | 13.8 | — | ||||
Proceeds from company-owned life insurance | 3.0 | — | ||||
Other investing activities | (1.3 | ) | (0.6 | ) | ||
Net cash used in investing activities | (79.6 | ) | (10.9 | ) | ||
Cash flows from financing activities: | ||||||
Net change in short-term borrowings | 17.1 | (8.4 | ) | |||
Dividend payments | (5.9 | ) | (5.9 | ) | ||
Payments of tax withholding for stock awards | (2.3 | ) | (6.2 | ) | ||
Other financing activities | (0.3 | ) | — | |||
Net cash from (used in) financing activities | 8.6 | (20.5 | ) | |||
Effect of exchange rates on cash, cash equivalents and restricted cash | (0.1 | ) | (0.1 | ) | ||
Net change in cash, cash equivalents and restricted cash | 2.4 | 1.7 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 40.1 | 36.9 | ||||
Cash, cash equivalents and restricted cash at end of period | $ | 42.5 | $ | 38.6 |
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
Second Quarter (Americas, International and GTS) | |||||||||||||
% | CC % | ||||||||||||
2019 | 2018 | Change | Change | ||||||||||
Americas | |||||||||||||
United States | $ | 991.3 | $ | 981.2 | 1.0 | % | 1.0 | % | |||||
Canada | 33.2 | 37.0 | (10.4 | ) | (7.2 | ) | |||||||
Mexico | 29.7 | 30.0 | (1.2 | ) | (2.9 | ) | |||||||
Puerto Rico | 19.6 | 26.2 | (25.0 | ) | (25.0 | ) | |||||||
Brazil | 8.2 | 9.0 | (9.3 | ) | 3.0 | ||||||||
Total Americas | 1,082.0 | 1,083.4 | (0.1 | ) | — | ||||||||
EMEA | |||||||||||||
France | 64.6 | 72.0 | (10.2 | ) | (4.8 | ) | |||||||
Switzerland | 49.9 | 52.8 | (5.6 | ) | (4.0 | ) | |||||||
Portugal | 46.7 | 51.2 | (8.9 | ) | (3.4 | ) | |||||||
United Kingdom | 30.5 | 28.5 | 7.0 | 13.3 | |||||||||
Russia | 28.8 | 25.6 | 12.8 | 17.2 | |||||||||
Italy | 20.7 | 19.3 | 7.5 | 13.7 | |||||||||
Ireland | 10.9 | 11.7 | (6.8 | ) | (1.2 | ) | |||||||
Germany | 9.9 | 14.8 | (33.7 | ) | (29.7 | ) | |||||||
Other | 16.9 | 22.0 | (23.0 | ) | (17.8 | ) | |||||||
Total EMEA | 278.9 | 297.9 | (6.3 | ) | (1.6 | ) | |||||||
Total APAC | 6.6 | 5.6 | 18.1 | 26.3 | |||||||||
Total Kelly Services, Inc. | $ | 1,367.5 | $ | 1,386.9 | (1.4 | ) | % | (0.2 | ) | % | |||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
REVENUE FROM SERVICES | |||||||||||||
(UNAUDITED) | |||||||||||||
(In millions of dollars) | |||||||||||||
June Year to Date (Americas, International and GTS) | |||||||||||||
% | CC % | ||||||||||||
2019 | 2018 | Change | Change | ||||||||||
Americas | |||||||||||||
United States | $ | 2,010.2 | $ | 1,955.9 | 2.8 | % | 2.8 | % | |||||
Canada | 66.2 | 70.6 | (6.2 | ) | (2.1 | ) | |||||||
Mexico | 57.2 | 60.4 | (5.4 | ) | (5.1 | ) | |||||||
Puerto Rico | 38.8 | 46.0 | (15.7 | ) | (15.7 | ) | |||||||
Brazil | 16.7 | 18.5 | (9.8 | ) | 3.7 | ||||||||
Total Americas | 2,189.1 | 2,151.4 | 1.7 | 2.0 | |||||||||
EMEA | |||||||||||||
France | 128.9 | 143.9 | (10.4 | ) | (4.0 | ) | |||||||
Switzerland | 99.4 | 102.5 | (3.0 | ) | 0.3 | ||||||||
Portugal | 91.5 | 102.3 | (10.6 | ) | (4.3 | ) | |||||||
United Kingdom | 56.7 | 57.5 | (1.4 | ) | 4.8 | ||||||||
Russia | 54.2 | 51.7 | 5.0 | 14.9 | |||||||||
Italy | 41.3 | 39.8 | 3.9 | 11.2 | |||||||||
Ireland | 21.0 | 23.0 | (8.6 | ) | (2.1 | ) | |||||||
Germany | 21.0 | 31.2 | (32.9 | ) | (28.0 | ) | |||||||
Other | 34.9 | 42.8 | (18.4 | ) | (11.9 | ) | |||||||
Total EMEA | 548.9 | 594.7 | (7.7 | ) | (1.6 | ) | |||||||
Total APAC | 12.1 | 10.7 | 13.7 | 22.8 | |||||||||
Total Kelly Services, Inc. | $ | 2,750.1 | $ | 2,756.8 | (0.2 | ) | % | 1.3 | % | ||||
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SECOND QUARTER | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Revenue from Services: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 597.6 | $ | — | $ | (22.7 | ) | $ | 574.9 | $ | 604.0 | ||||||||
Global Talent Solutions | 505.9 | — | (16.7 | ) | 489.2 | 500.7 | |||||||||||||
International Staffing | 268.1 | — | — | 268.1 | 286.6 | ||||||||||||||
Intersegment | (4.1 | ) | — | — | (4.1 | ) | (4.4 | ) | |||||||||||
Total Company | $ | 1,367.5 | $ | — | $ | (39.4 | ) | $ | 1,328.1 | $ | 1,386.9 | ||||||||
2019 | 2018 | ||||||||||||||||||
Gross Profit: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 108.8 | $ | — | $ | (7.0 | ) | $ | 101.8 | $ | 108.5 | ||||||||
Global Talent Solutions | 99.7 | — | (4.1 | ) | 95.6 | 92.7 | |||||||||||||
International Staffing | 36.1 | — | — | 36.1 | 39.9 | ||||||||||||||
Intersegment | (0.6 | ) | — | — | (0.6 | ) | (0.6 | ) | |||||||||||
Total Company | $ | 244.0 | $ | — | $ | (11.1 | ) | $ | 232.9 | $ | 240.5 | ||||||||
2019 | 2018 | ||||||||||||||||||
SG&A Expenses: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 93.2 | $ | 0.6 | $ | (5.0 | ) | $ | 88.8 | $ | 90.7 | ||||||||
Global Talent Solutions | 74.3 | — | (1.9 | ) | 72.4 | 75.0 | |||||||||||||
International Staffing | 32.6 | — | — | 32.6 | 33.5 | ||||||||||||||
Corporate | 22.0 | — | — | 22.0 | 21.5 | ||||||||||||||
Intersegment | (0.6 | ) | — | — | (0.6 | ) | (0.6 | ) | |||||||||||
Total Company | $ | 221.5 | $ | 0.6 | $ | (6.9 | ) | $ | 215.2 | $ | 220.1 | ||||||||
2019 | 2018 | ||||||||||||||||||||||
Earnings from Operations: | As Reported | Restructuring(2) | Acquisitions(3) | Gain on sale of assets(4) | Adjusted | As Reported | |||||||||||||||||
Americas Staffing | $ | 15.6 | $ | (0.6 | ) | $ | (2.0 | ) | $ | — | $ | 13.0 | $ | 17.8 | |||||||||
Global Talent Solutions | 25.4 | — | (2.2 | ) | — | 23.2 | 17.7 | ||||||||||||||||
International Staffing | 3.5 | — | — | — | 3.5 | 6.4 | |||||||||||||||||
Corporate | (9.7 | ) | — | — | (12.3 | ) | (22.0 | ) | (21.5 | ) | |||||||||||||
Total Company | $ | 34.8 | $ | (0.6 | ) | $ | (4.2 | ) | $ | (12.3 | ) | $ | 17.7 | $ | 20.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
JUNE YEAR TO DATE | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Revenue from Services: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 1,224.1 | $ | — | $ | (42.9 | ) | $ | 1,181.2 | $ | 1,208.3 | ||||||||
Global Talent Solutions | 1,006.9 | — | (32.4 | ) | 974.5 | 986.5 | |||||||||||||
International Staffing | 527.0 | — | — | 527.0 | 571.3 | ||||||||||||||
Intersegment | (7.9 | ) | — | — | (7.9 | ) | (9.3 | ) | |||||||||||
Total Company | $ | 2,750.1 | $ | — | $ | (75.3 | ) | $ | 2,674.8 | $ | 2,756.8 | ||||||||
2019 | 2018 | ||||||||||||||||||
Gross Profit: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 226.0 | $ | — | $ | (13.2 | ) | $ | 212.8 | $ | 216.5 | ||||||||
Global Talent Solutions | 200.1 | — | (7.0 | ) | 193.1 | 184.5 | |||||||||||||
International Staffing | 70.7 | — | — | 70.7 | 79.0 | ||||||||||||||
Intersegment | (1.2 | ) | — | — | (1.2 | ) | (1.3 | ) | |||||||||||
Total Company | $ | 495.6 | $ | — | $ | (20.2 | ) | $ | 475.4 | $ | 478.7 | ||||||||
2019 | 2018 | ||||||||||||||||||
SG&A Expenses: | As Reported | Restructuring(2) | Acquisitions(3) | Adjusted | As Reported | ||||||||||||||
Americas Staffing | $ | 194.4 | $ | (5.7 | ) | $ | (10.0 | ) | $ | 178.7 | $ | 182.6 | |||||||
Global Talent Solutions | 149.0 | — | (3.7 | ) | 145.3 | 150.8 | |||||||||||||
International Staffing | 63.9 | — | — | 63.9 | 67.6 | ||||||||||||||
Corporate | 50.2 | — | — | 50.2 | 46.6 | ||||||||||||||
Intersegment | (1.2 | ) | — | — | (1.2 | ) | (1.3 | ) | |||||||||||
Total Company | $ | 456.3 | $ | (5.7 | ) | $ | (13.7 | ) | $ | 436.9 | $ | 446.3 | |||||||
2019 | 2018 | ||||||||||||||||||||||
Earnings from Operations: | As Reported | Restructuring(2) | Acquisitions(3) | Gain on sale of assets(4) | Adjusted | As Reported | |||||||||||||||||
Americas Staffing | $ | 31.6 | $ | 5.7 | $ | (3.2 | ) | $ | — | $ | 34.1 | $ | 33.9 | ||||||||||
Global Talent Solutions | 51.1 | — | (3.3 | ) | — | 47.8 | 33.7 | ||||||||||||||||
International Staffing | 6.8 | — | — | — | 6.8 | 11.4 | |||||||||||||||||
Corporate | (37.9 | ) | — | — | (12.3 | ) | (50.2 | ) | (46.6 | ) | |||||||||||||
Total Company | $ | 51.6 | $ | 5.7 | $ | (6.5 | ) | $ | (12.3 | ) | $ | 38.5 | $ | 32.4 |
KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (continued) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In millions of dollars except per share data) | ||||||||||||||||
Second Quarter | June Year to Date | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Income tax expense (benefit) | $ | 12.7 | $ | (15.6 | ) | $ | 19.1 | $ | (9.2 | ) | ||||||
Tax expense on investment in Persol Holdings(1) | (18.7 | ) | 16.2 | (22.8 | ) | 8.9 | ||||||||||
Tax expense on restructuring charges(2) | (0.1 | ) | — | 1.5 | — | |||||||||||
Tax expense on acquisitions(3) | (1.0 | ) | — | (1.6 | ) | — | ||||||||||
Tax expense on gain on sale of assets(4) | (3.3 | ) | — | (3.3 | ) | — | ||||||||||
Adjusted income tax expense (benefit) | $ | (10.4 | ) | $ | 0.6 | $ | (7.1 | ) | $ | (0.3 | ) | |||||
Second Quarter | June Year to Date | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings (loss) | $ | 83.8 | $ | (15.4 | ) | $ | 105.9 | $ | 13.7 | |||||||
(Gain) loss on investment in Persol Holdings, net of taxes(1) | (42.5 | ) | 36.3 | (51.6 | ) | 19.9 | ||||||||||
Restructuring charges, net of taxes(2) | (0.5 | ) | — | 4.2 | — | |||||||||||
Net earnings from acquisitions(3) | (3.2 | ) | — | (4.9 | ) | — | ||||||||||
Gain on sale of assets, net of taxes(4) | (9.0 | ) | — | (9.0 | ) | — | ||||||||||
Adjusted net earnings | $ | 28.6 | $ | 20.9 | $ | 44.6 | $ | 33.6 | ||||||||
Second Quarter | June Year to Date | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Per Share | Per Share | |||||||||||||||
Net earnings (loss) | $ | 2.12 | $ | (0.40 | ) | $ | 2.68 | $ | 0.35 | |||||||
(Gain) loss on investment in Persol Holdings, net of taxes(1) | (1.07 | ) | 0.94 | (1.31 | ) | 0.51 | ||||||||||
Restructuring charges, net of taxes(2) | (0.01 | ) | — | 0.11 | — | |||||||||||
Acquisitions, net of taxes(3) | (0.08 | ) | — | (0.12 | ) | — | ||||||||||
Gain on sale of assets, net of taxes(4) | (0.23 | ) | — | (0.23 | ) | — | ||||||||||
Adjusted net earnings | $ | 0.72 | $ | 0.54 | $ | 1.13 | $ | 0.86 |
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