Exhibit 99.1

KELLY SERVICES^® REPORTS 2^nd QUARTER RESULTS

TROY, MI (August 7, 2013) -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter of 2013.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2013 totaled $1.4 billion, a 0.1% increase compared to the corresponding quarter of 2012.

Earnings from operations for the second quarter of 2013 totaled $16.4 million, compared to $23.8 million reported for the second quarter of 2012. Included in the results of operations in the second quarter of 2013 are impairment charges of $1.7 million and restructuring charges of $0.8 million. The results of operations in the second quarter of 2012 included a benefit due to changes in the estimated cost of restructuring of $2.2 million. Excluding the impairment and restructuring charges, earnings from operations were $18.9 million in the second quarter of 2013, compared to adjusted earnings of $21.6 million last year.

Diluted earnings per share from continuing operations in the second quarter of 2013 were $0.26 compared to $0.40 per share in the second quarter of 2012. Adjusted earnings per share were $0.33 in the second quarter of 2013 compared to $0.34 in the second quarter of 2012.

“We're pleased with our second quarter performance in each operating segment, given the uneven and generally subpar global economic growth” said Camden. “The Americas delivered solid results that were in line with our expectations, considering both our investment strategy and the lower volume we’re experiencing. In EMEA and APAC, we’re proud of our efforts in recalibrating our operations to bring costs in line with revenue in a tough environment. In addition, the growth we are seeing in KellyOCG’s revenue and fees confirms that our solutions are meeting market demand for outsourced talent management programs, and we believe the investments we’re making will support our long-term growth in that segment.”

Kelly also reported that on August 6, its board of directors declared a dividend of $0.05 per share. The dividend is payable September 9 to shareholders of record as of the close of business on August 19.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 7, 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:

www.kellyservices.com

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, 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, 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, and 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.

# # #

 

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 JUNE 30, 2013 AND JULY 1, 2012

(UNAUDITED)

(In millions of dollars except per share data)

	2013			2012			Change				% Change
Revenue from services	$	1,366.9		$	1,366.1		$	0.8				0.1	%
Cost of services		1,146.2			1,142.9			3.3				0.3
Gross profit		220.7			223.2			(2.5	)			(1.1	)
Selling, general and administrative expenses		202.6			199.4			3.2				1.6
Asset impairments		1.7			-			1.7			NM
Earnings from operations		16.4			23.8			(7.4	)			(30.9	)
Other expense, net		1.6			0.5			1.1				234.2
Earnings from continuing operations before taxes		14.8			23.3			(8.5	)			(36.5	)
Income tax expense		4.8			8.3			(3.5	)			(42.4	)
Earnings from continuing operations		10.0			15.0			(5.0	)			(33.2	)
Earnings from discontinued operations, net of tax		-			-			-			NM
Net earnings	$	10.0		$	15.0		$	(5.0	)			(33.2	)%
Basic earnings per share on common stock
Earnings from continuing operations	$	0.26		$	0.40		$	(0.14	)			(35.0	)%
Earnings from discontinued operations		-			-			-			NM
Net earnings		0.26			0.40			(0.14	)			(35.0	)
Diluted earnings per share on common stock
Earnings from continuing operations	$	0.26		$	0.40		$	(0.14	)			(35.0	)%
Earnings from discontinued operations		-			-			-			NM
Net earnings		0.26			0.40			(0.14	)			(35.0	)
STATISTICS:
Gross profit rate		16.1	%		16.3	%		(0.2	)	pts.
Selling, general and administrative expenses:
% of revenue		14.8			14.6			0.2
% of gross profit		91.8			89.4			2.4
% Return:
Earnings from operations		1.2			1.7			(0.5	)
Earnings from continuing operations before taxes		1.1			1.7			(0.6	)
Earnings from continuing operations		0.7			1.1			(0.4	)
Net earnings		0.7			1.1			(0.4	)
Effective income tax rate		32.2	%		35.5	%		(3.3	)	pts.
Average number of shares outstanding (millions):
Basic		37.2			37.0
Diluted		37.2			37.0
Shares adjusted for nonvested restricted awards (millions):
Basic		38.2			37.8
Diluted		38.2			37.8

3

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 26 WEEKS ENDED JUNE 30, 2013 AND JULY 1, 2012

(UNAUDITED)

(In millions of dollars except per share data)

 

	2013			2012			Change				% Change
Revenue from services	$	2,681.7		$	2,720.9		$	(39.2	)			(1.4	)%
Cost of services		2,244.1			2,274.0			(29.9	)			(1.3	)
Gross profit		437.6			446.9			(9.3	)			(2.1	)
Selling, general and administrative expenses		412.4			408.4			4.0				1.0
Asset impairments		1.7			-			1.7			NM
Earnings from operations		23.5			38.5			(15.0	)			(38.9	)
Other expense, net		2.6			1.1			1.5				137.7
Earnings from continuing operations before taxes	20.9				37.4			(16.5	)			(44.0	)
Income tax (benefit) expense		(2.0	)		13.2			(15.2	)			(115.4	)
Earnings from continuing operations		22.9			24.2			(1.3	)			(5.3	)
Earnings from discontinued operations, net of tax		-			0.4			(0.4	)			(99.8	)
Net earnings	$	22.9		$	24.6		$	(1.7	)			(7.0	)%
Basic earnings per share on common stock
Earnings from continuing operations	$	0.60		$	0.64		$	(0.04	)			(6.3	)%
Earnings from discontinued operations		-			0.01			(0.01	)			(100.0	)
Net earnings		0.60			0.65			(0.05	)			(7.7	)
Diluted earnings per share on common stock
Earnings from continuing operations	$	0.60		$	0.64		$	(0.04	)			(6.3	)%
Earnings from discontinued operations		-			0.01			(0.01	)			(100.0	)
Net earnings		0.60			0.65			(0.05	)			(7.7	)
STATISTICS:
Gross profit rate		16.3	%		16.4	%		(0.1	)	pts.
Selling, general and administrative expenses:
% of revenue		15.4			15.0			0.4
% of gross profit		94.3			91.4			2.9
% Return:
Earnings from operations		0.9			1.4			(0.5	)
Earnings from continuing operations before taxes		0.8			1.4			(0.6	)
Earnings from continuing operations		0.9			0.9			0.0
Net earnings		0.9			0.9			0.0
Effective income tax rate		(9.7	) %		35.2	%		(44.9	)	pts.
Average number of shares outstanding (millions):
Basic		37.2			36.9
Diluted		37.2			37.0
Shares adjusted for nonvested restricted awards (millions):
Basic		38.2			37.8
Diluted		38.2			37.8

4

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			Second Quarter
												Constant
												Currency
			2013			2012			Change			Change
AMERICAS
Commercial
	Revenue from services (including fee-based income)		$	648.8		$	668.6			(3.0	)%		(3.1	)%
	Fee-based income			4.0			4.2			(4.9	)		(4.5	)
	Gross profit			94.2			97.7			(3.6	)		(3.7	)
	Gross profit rate			14.5	%		14.6	%		(0.1	)	pts.
PT
	Revenue from services (including fee-based income)		$	259.6		$	262.4			(1.1	)%		(1.2	)%
	Fee-based income			4.1			4.2			(3.5	)		(3.4	)
	Gross profit			41.1			39.7			3.5			3.4
	Gross profit rate			15.8	%		15.1	%		0.7		pts.
Total Americas
	Revenue from services (including fee-based income)		$	908.4		$	931.0			(2.4	)%		(2.6	)%
	Fee-based income			8.1			8.4			(4.2	)		(4.0	)
	Gross profit			135.3			137.4			(1.6	)		(1.6	)
	Total SG&A expenses			103.8			99.0			4.8			4.8
	Earnings from operations			31.5			38.4			(18.0	)
	Gross profit rate			14.9	%		14.8	%		0.1		pts.
	Expense rates:
		% of revenue		11.4			10.6			0.8
		% of gross profit		76.7			72.0			4.7
	Operating margin			3.5			4.1			(0.6	)
EMEA
Commercial
	Revenue from services (including fee-based income)		$	219.8		$	213.7			2.8	%		2.5	%
	Fee-based income			5.2			6.2			(16.9	)		(16.6	)
	Gross profit			33.8			34.2			(1.0	)		(1.8	)
	Gross profit rate			15.4	%		16.0	%		(0.6	)	pts.
PT
	Revenue from services (including fee-based income)		$	43.1		$	41.6			3.6	%		3.2	%
	Fee-based income			3.9			4.4			(12.0	)		(11.7	)
	Gross profit			10.5			10.9			(3.3	)		(3.6	)
	Gross profit rate			24.4	%		26.1	%		(1.7	)	pts.
Total EMEA
	Revenue from services (including fee-based income)		$	262.9		$	255.3			3.0	%		2.6	%
	Fee-based income			9.1			10.6			(14.9	)		(14.6	)
	Gross profit			44.3			45.1			(1.6	)		(2.2	)
	SG&A expenses excluding restructuring charges			39.9			41.9			(4.7	)
	Restructuring charges			-			(2.2	)		101.8
	Total SG&A expenses			39.9			39.7			0.5			-
	Earnings from operations			4.4			5.4			(17.3	)
	Earnings from operations excluding restructuring charges			4.4			3.2			40.5
	Gross profit rate			16.9	%		17.6	%		(0.7	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		15.2			16.4			(1.2	)
		% of gross profit		90.1			93.0			(2.9	)
	Operating margin (excluding restructuring charges)			1.7			1.2			0.5

5

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

			Second Quarter
												Constant
												Currency
			2013			2012			Change			Change
APAC
Commercial
	Revenue from services (including fee-based income)		$	87.7		$	84.3			4.0	%		3.7	%
	Fee-based income			2.9			3.0			(7.8	)		(7.2	)
	Gross profit			12.5			12.5			-			(0.2	)
	Gross profit rate			14.3	%		14.9	%		(0.6	)	pts.
PT
	Revenue from services (including fee-based income)		$	10.0		$	12.8			(21.5	)%		(21.0	)%
	Fee-based income			2.5			4.1			(40.0	)		(39.7	)
	Gross profit			3.8			5.3			(29.6	)		(29.1	)
	Gross profit rate			37.4	%		41.7	%		(4.3	)	pts.
Total APAC
	Revenue from services (including fee-based income)		$	97.7		$	97.1			0.7	%		0.5	%
	Fee-based income			5.4			7.1			(26.2	)		(25.7	)
	Gross profit			16.3			17.8			(8.8	)		(8.8	)
	Total SG&A expenses			15.4			19.0			(19.0	)		(18.9	)
	Earnings from operations			0.9			(1.2	)	NM
	Gross profit rate			16.6	%		18.4	%		(1.8	)	pts.
	Expense rates:
		% of revenue		15.8			19.6			(3.8	)
		% of gross profit		94.7			106.6			(11.9	)
	Operating margin			0.9			(1.2	)		2.1
OCG
	Revenue from services (including fee-based income)		$	109.9		$	91.4			20.2	%		20.3	%
	Fee-based income			15.7			12.8			23.1			23.3
	Gross profit			25.6			23.7			8.4			8.5
	Total SG&A excluding restructuring charges			25.6			22.8			12.4
	Restructuring charges			0.8			-		NM
	Total SG&A expenses			26.4			22.8			15.6			15.6
	Asset impairments			1.7			-		NM
	Earnings from operations			(2.5	)		0.9		NM
	Earnings from operations excluding restructuring charges			(1.7	)		0.9		NM
	Gross profit rate			23.3	%		25.9	%		(2.6	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		23.3			25.0			(1.7	)
		% of gross profit		100.1			96.5			3.6
	Operating margin (excluding restructuring charges)			(1.5	)		0.9			(2.4	)

6

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			June Year to Date
												Constant
												Currency
			2013			2012			Change			Change
AMERICAS
Commercial
	Revenue from services (including fee-based income)		$	1,287.1		$	1,337.9			(3.8	)%		(3.7	)%
	Fee-based income			7.9			7.7			3.3			4.1
	Gross profit			187.7			195.7			(4.1	)		(3.9	)
	Gross profit rate			14.6	%		14.6	%		-		pts.
PT
	Revenue from services (including fee-based income)		$	510.6		$	512.5			(0.4	)%		(0.5	)%
	Fee-based income			8.0			7.6			4.1			4.1
	Gross profit			81.5			79.9			1.9			1.9
	Gross profit rate			16.0	%		15.6	%		0.4		pts.
Total Americas
	Revenue from services (including fee-based income)		$	1,797.7		$	1,850.4			(2.9	)%		(2.8	)%
	Fee-based income			15.9			15.3			3.7			4.1
	Gross profit			269.2			275.6			(2.3	)		(2.2	)
	Total SG&A expenses			213.0			201.9			5.5			5.6
	Earnings from operations			56.2			73.7			(23.7	)
	Gross profit rate			15.0	%		14.9	%		0.1		pts.
	Expense rates:
		% of revenue		11.8			10.9			0.9
		% of gross profit		79.1			73.3			5.8
	Operating margin			3.1			4.0			(0.9	)
EMEA
Commercial
	Revenue from services (including fee-based income)		$	420.8		$	426.7			(1.4	)%		(1.5	)%
	Fee-based income			10.7			12.3			(13.4	)		(13.2	)
	Gross profit			64.9			67.7			(4.1	)		(4.4	)
	Gross profit rate			15.4	%		15.9	%		(0.5	)	pts.
PT
	Revenue from services (including fee-based income)		$	86.6		$	83.8			3.3	%		3.1	%
	Fee-based income			7.9			9.0			(12.6	)		(12.4	)
	Gross profit			21.2			22.2			(4.4	)		(4.5	)
	Gross profit rate			24.5	%		26.4	%		(1.9	)	pts.
Total EMEA
	Revenue from services (including fee-based income)		$	507.4		$	510.5			(0.6	)%		(0.7	)%
	Fee-based income			18.6			21.3			(13.1	)		(12.9	)
	Gross profit			86.1			89.9			(4.2	)		(4.4	)
	SG&A expenses excluding restructuring charges			82.1			86.4			(5.0	)
	Restructuring charges			(0.2	)		(2.2	)		93.8
	Total SG&A expenses			81.9			84.2			(2.7	)		(2.9	)
	Earnings from operations			4.2			5.7			(25.7	)
	Earnings from operations excluding restructuring charges			4.0			3.5			16.0
	Gross profit rate			17.0	%		17.6	%		(0.6	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		16.2			16.9			(0.7	)
		% of gross profit		95.2			96.1			(0.9	)
	Operating margin (excluding restructuring charges)			0.8			0.7			0.1

7

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

			June Year to Date
												Constant
												Currency
			2013			2012			Change			Change
APAC
Commercial
	Revenue from services (including fee-based income)		$	169.2		$	172.6			(2.0	)%		(2.0	)%
	Fee-based income			5.6			6.4			(13.4	)		(12.5	)
	Gross profit			24.1			25.6			(5.9	)		(5.7	)
	Gross profit rate			14.2	%		14.8	%		(0.6	)	pts.
PT
	Revenue from services (including fee-based income)		$	20.2		$	25.6			(21.2	)%		(20.5	)%
	Fee-based income			4.5			8.1			(45.4	)		(45.0	)
	Gross profit			7.1			10.5			(33.1	)		(32.5	)
	Gross profit rate			34.9	%		41.1	%		(6.2	)	pts.
Total APAC
	Revenue from services (including fee-based income)		$	189.4		$	198.2			(4.5	)%		(4.3	)%
	Fee-based income			10.1			14.5			(31.2	)		(30.6	)
	Gross profit			31.2			36.1			(13.8	)		(13.5	)
	SG&A expenses excluding restructuring charges			31.0			38.7			(20.0	)
	Restructuring charges			0.2			-		NM
	Total SG&A expenses			31.2			38.7			(19.4	)		(19.1	)
	Earnings from operations			-			(2.6	)		98.9
	Earnings from operations excluding restructuring charges			0.2			(2.6	)	NM
	Gross profit rate			16.4	%		18.2	%		(1.8	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		16.3			19.5			(3.2	)
		% of gross profit		99.3			107.1			(7.8	)
	Operating margin (excluding restructuring charges)			0.1			(1.3	)		1.4
OCG
	Revenue from services (including fee-based income)		$	208.9		$	178.1			17.3	%		17.4	%
	Fee-based income			30.3			24.4			24.4			24.7
	Gross profit			52.7			46.8			12.6			12.8
	SG&A expenses excluding restructuring charges			51.0			45.4			12.3
	Restructuring charges			0.8			-		NM
	Total SG&A expenses			51.8			45.4			13.9			14.0
	Asset impairments			1.7			-		NM
	Earnings from operations			(0.8	)		1.4		NM
	Earnings from operations excluding restructuring charges			-			1.4		NM
	Gross profit rate			25.2	%		26.3	%		(1.1	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		24.4			25.5			(1.1	)
		% of gross profit		96.8			97.1			(0.3	)
	Operating margin (excluding restructuring charges)			-			0.7			(0.7	)

8

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In millions of dollars)

 

		June 30, 2013			Dec. 30, 2012			July 1, 2012
Current Assets
Cash and equivalents		$	70.3		$	76.3		$	65.2
Trade accounts receivable, less allowances of $9.8 and $10.4 and $11.8, respectively			1,038.8			1,013.9			985.0
Prepaid expenses and other current assets			60.0			57.5			57.9
Deferred taxes			39.0			44.9			33.4
	Total current assets		1,208.1			1,192.6			1,141.5
Property and Equipment, Net			87.2			89.9			90.3
Noncurrent Deferred Taxes			103.1			82.8			93.4
Goodwill, Net			90.3			89.5			91.4
Other Assets			227.8			180.9			168.4
Total Assets		$	1,716.5		$	1,635.7		$	1,585.0
Current Liabilities
Short-term borrowings		$	83.2		$	64.1		$	88.5
Accounts payable and accrued liabilities			289.2			295.6			269.5
Accrued payroll and related taxes			277.9			264.5			253.7
Accrued insurance			31.2			32.8			30.3
Income and other taxes			64.9			65.3			56.5
	Total current liabilities		746.4			722.3			698.5
Noncurrent Liabilities
Accrued insurance			41.4			43.5			51.4
Accrued retirement benefits			123.2			111.0			102.8
Other long-term liabilities			28.2			17.9			24.0
	Total noncurrent liabilities		192.8			172.4			178.2
Stockholders' Equity
Common stock			40.1			40.1			40.1
Treasury stock			(60.6	)		(61.6	)		(63.2	)
Paid-in capital			28.9			27.1			27.4
Earnings invested in the business			719.1			700.0			678.3
Accumulated other comprehensive income			49.8			35.4			25.7
	Total stockholders' equity		777.3			741.0			708.3
Total Liabilities and Stockholders' Equity		$	1,716.5		$	1,635.7		$	1,585.0
STATISTICS:
Working Capital		$	461.7		$	470.3		$	443.0
Current Ratio			1.6			1.7			1.6
Debt-to-capital %			9.7	%		8.0	%		11.1	%
Global Days Sales Outstanding			54			53			53

9

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 26 WEEKS ENDED JUNE 30, 2013 AND JULY 1, 2012

(UNAUDITED)

(In millions of dollars)

 

	2013			2012
Cash flows from operating activities
Net earnings	$	22.9		$	24.6
Noncash adjustments:
Impairment of assets		1.7			-
Depreciation and amortization		10.5			11.6
Provision for bad debts		0.5			0.6
Stock-based compensation		2.6			2.1
Other, net		0.7			-
Changes in operating assets and liabilities		(53.1	)		(33.0	)
Net cash (used in) from operating activities		(14.2	)		5.9
Cash flows from investing activities
Capital expenditures		(7.7	)		(9.8	)
Other investing activities		(0.2	)		-
Net cash used in investing activities		(7.9	)		(9.8	)
Cash flows from financing activities
Net change in short-term borrowings	19.1				(7.8	)
Dividend payments		(3.8	)		(3.8	)
Net cash from (used in) financing activities		15.3			(11.6	)
Effect of exchange rates on cash and equivalents		0.8			(0.3	)
Net change in cash and equivalents		(6.0	)		(15.8	)
Cash and equivalents at beginning of period		76.3			81.0
Cash and equivalents at end of period	$	70.3		$	65.2

10

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES
(UNAUDITED)

(In millions of dollars)

 

		Second Quarter (Commercial, PT and OCG)
						% Change
									Constant
		2013		2012		US$			Currency
Americas
	United States	$	864.3	$	874.4		(1.2	)%		(1.2	)%
	Canada		55.0		62.0		(11.3	)		(10.1	)
	Mexico		35.9		25.8		38.9			27.9
	Puerto Rico		26.1		25.9		0.5			0.5
	Brazil		13.4		14.4		(7.0	)		(0.9	)
Total Americas			994.7		1,002.5		(0.8	)		(0.9	)
EMEA
	France		62.3		61.1		2.0			0.1
	Switzerland		63.6		59.8		6.3			6.8
	Russia		34.6		31.8		9.1			11.2
	United Kingdom		25.8		26.0		(1.0	)		2.0
	Portugal		21.1		19.0		11.2			9.0
	Germany		15.9		17.4		(8.9	)		(10.7	)
	Norway		15.4		16.7		(8.1	)		(9.2	)
	Italy		14.7		15.1		(2.4	)		(4.4	)
	Other		17.3		15.6		11.4			9.2
Total EMEA			270.7		262.5		3.1			2.8
APAC
	Australia		35.3		32.3		9.1			11.2
	Singapore		28.0		24.9		12.4			11.1
	Malaysia		17.2		18.0		(4.2	)		(5.6	)
	New Zealand		12.0		13.4		(10.2	)		(13.6	)
	Other		9.0		12.5		(27.7	)		(25.5	)
Total APAC			101.5		101.1		0.4			0.3
Total Kelly Services, Inc.		$	1,366.9	$	1,366.1		0.1	%		(0.1	)%

11

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES
(UNAUDITED)

(In millions of dollars)

 

		June Year to Date (Commercial, PT and OCG)
						% Change
									Constant
		2013		2012		US$			Currency
Americas
	United States	$	1,703.8	$	1,732.9		(1.7	)%		(1.7	)%
	Canada		111.0		121.5		(8.6	)		(7.7	)
	Mexico		66.3		51.3		29.3			22.4
	Puerto Rico		49.2		51.8		(5.1	)		(5.1	)
	Brazil		31.9		32.4		(1.8	)		8.7
Total Americas			1,962.2		1,989.9		(1.4	)		(1.3	)
EMEA
	France		119.6		123.9		(3.5	)		(4.7	)
	Switzerland		117.0		113.4		3.2			4.0
	Russia		69.1		65.4		5.7			7.4
	United Kingdom		51.6		53.7		(3.9	)		(1.9	)
	Portugal		38.9		37.2		4.5			3.2
	Germany		31.9		36.1		(11.8	)		(12.9	)
	Norway		30.2		33.2		(9.0	)		(10.7	)
	Italy		29.8		31.4		(4.9	)		(6.1	)
	Other		34.7		31.2		11.3			9.7
Total EMEA			522.8		525.5		(0.5	)		(0.6	)
APAC
	Australia		68.0		66.2		2.8			4.6
	Singapore		54.1		49.1		10.3			8.5
	Malaysia		33.9		35.8		(5.3	)		(5.7	)
	New Zealand		23.5		26.5		(11.4	)		(14.0	)
	Other		17.2		27.9		(38.3	)		(35.6	)
Total APAC			196.7		205.5		(4.3	)		(4.1	)
Total Kelly Services, Inc.		$	2,681.7	$	2,720.9		(1.4	)%		(1.4	)%

12

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FOR THE 13 WEEKS ENDED JUNE 30, 2013 AND JULY 1, 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	$	1,366.9	$	-		$	-		$	1,366.9	$	1,366.1		0.1	%
Cost of services		1,146.2		-			-			1,146.2		1,142.9		0.3
Gross profit		220.7		-			-			220.7		223.2		(1.1	)
Selling, general and administrative expenses		202.6		(0.8	)		-			201.8		201.6		0.1
Asset impairments		1.7		-			(1.7	)		-		-	NM
Earnings from operations		16.4		0.8			1.7			18.9		21.6		(12.5	)
Other expense, net		1.6		-			-			1.6		0.5		(234.2	)
Earnings from continuing operations before taxes		14.8		0.8			1.7			17.3		21.1		(18.3	)
Income tax expense (benefit)		4.8		-			-			4.8		8.3		(42.4	)
Earnings from continuing operations	$	10.0	$	0.8		$	1.7		$	12.5	$	12.8		(5.8	)%
Earnings per share from continuing operations:
Basic	$	0.26	$	0.02		$	0.04		$	0.33	$	0.34		(2.9	)%
Diluted	$	0.26	$	0.02		$	0.04		$	0.33	$	0.34		(2.9	)%
	2012
	As reported		Restructuring Charges (Note 1)			Adjusted Earnings
Revenue from services	$	1,366.1	$	-		$	1,366.1
Cost of services		1,142.9		-			1,142.9
Gross profit		223.2		-			223.2
Selling, general and administrative expenses		199.4		2.2			201.6
Earnings from operations		23.8		(2.2	)		21.6
Other expense, net		0.5		-			0.5
Earnings from continuing operations before taxes		23.3		(2.2	)		21.1
Income tax expense (benefit)		8.3		-			8.3
Earnings from continuing operations	$	15.0	$	(2.2	)	$	12.8
Earnings per share from continuing operations:
Basic	$	0.40	$	(0.06	)	$	0.34
Diluted	$	0.40	$	(0.06	)	$	0.34

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.

13

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FOR THE 26 WEEKS ENDED JUNE 30, 2013 AND JULY 1, 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	$	2,681.7		$	-		$	-		$	2,681.7		$	2,720.9		(1.4	)%
Cost of services		2,244.1			-			-			2,244.1			2,274.0		(1.3	)
Gross profit		437.6			-			-			437.6			446.9		(2.1	)
Selling, general and administrative expenses		412.4			(0.8	)		-			411.6			410.6		0.2
Asset impairments		1.7			-			(1.7	)		-			-	NM
Earnings from operations		23.5			0.8			1.7			26.0			36.3		(28.4	)
Other expense, net		2.6			-			-			2.6			1.1		(137.7	)
Earnings from continuing operations before taxes	20.9				0.8			1.7			23.4			35.2		(33.5	)
Income tax expense (benefit)		(2.0	)		-			-			(2.0	)		13.2		(115.4	)
Earnings from continuing operations	$	22.9		$	0.8		$	1.7		$	25.4		$	22.0		13.1	%
Earnings per share from continuing operations:
Basic	$	0.60		$	0.02		$	0.04		$	0.67		$	0.58		15.5	%
Diluted	$	0.60		$	0.02		$	0.04		$	0.67		$	0.58		15.5	%
	2012
	As reported			Restructuring Charges (Note 1)			Adjusted Earnings
Revenue from services	$	2,720.9		$	-		$	2,720.9
Cost of services		2,274.0			-			2,274.0
Gross profit		446.9			-			446.9
Selling, general and administrative expenses		408.4			2.2			410.6
Asset impairments		-			-			-
Earnings from operations		38.5			(2.2	)		36.3
Other expense, net		1.1			-			1.1
Earnings from continuing operations before taxes		37.4			(2.2	)		35.2
Income tax expense (benefit)		13.2			-			13.2
Earnings from continuing operations	$	24.2		$	(2.2	)	$	22.0
Earnings per share from continuing operations:
Basic	$	0.64		$	(0.06	)	$	0.58
Diluted	$	0.64		$	(0.06	)	$	0.58

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.

14

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)	During the second quarter of 2013, the Company made the decision to exit the executive search business operating in Germany. The restructuring charges primarily relate to severance costs from exiting this business.  In the second quarter of 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.

15