(Source: MARKETWIRE)

Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a world leader in workforce management services and human resources solutions, today announced results for the second quarter of 2009.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2009 totaled $1.0 billion, a 29% decrease compared to the corresponding quarter in 2008. On a constant currency basis, revenue decreased by 24%.
Losses from operations for the second quarter of 2009 totaled $74.5 million, compared to earnings from operations of $15.0 million reported for the second quarter of 2008. Included in the results from operations for the second quarter 2009 are impairment charges totaling $52.6 million and $2.4 million of restructuring costs relating to the Company's UK operations. Excluding the impairment and restructuring charges, the loss from operations was $19.5 million for the second quarter of 2009.
Diluted losses per share from continuing operations in the second quarter of 2009 were $1.89, compared to second quarter 2008 earnings of $0.30 per share. The impairment charges totaled $1.41 per share and the UK restructuring charge totaled $0.07 per share in the second quarter of 2009.
The second quarter impairment charges include adjustments to the value of goodwill for the Company's Americas Commercial, EMEA PT and APAC Commercial segments and the long-lived assets related to operations in Japan. The UK restructuring charge is part of a plan to further consolidate and close branches in the UK during 2009.
Commenting on the second quarter results, Camden said the Company's loss reflects the continued weakened state of labor markets throughout the world.
"In this challenging environment, we remain focused on expense control, where our efforts have had a significant impact on our overall performance. Going forward, we will seek out additional opportunities to simplify our business structure and operate more efficiently.
"While having the potential to yield immediate results, these actions will also serve to strengthen Kelly, provide impetus when the economy improves, and position us for long-term success," said Camden.
In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 5, to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Telephone:
U.S. 1 800 553-0327 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
This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other 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.
A reconciliation of certain non-GAAP financial measures discussed in this release is included in the attached financial information schedules.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a world leader in workforce management services and human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement to clients on a global basis. Kelly provides employment to nearly 650,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care. Revenue in 2008 was $5.5 billion. Visit www.kellyservices.com.
KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 13 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008 (UNAUDITED) (In millions of dollars except per share data) 2009 2008 Change % Change --------- --------- --------- -------- Revenue from services $ 1,028.9 $ 1,452.0 $ (423.1) (29.1)% Cost of services 857.2 1,194.6 (337.4) (28.2) --------- --------- --------- -------- Gross profit 171.7 257.4 (85.7) (33.3) Selling, general and administrative expenses 193.6 242.4 (48.8) (20.2) Asset impairments 52.6 - 52.6 NM --------- --------- --------- -------- (Loss) earnings from operations (74.5) 15.0 (89.5) NM Other (expense) income, net (1.0) 0.1 (1.1) NM --------- --------- --------- -------- (Loss) earnings from continuing operations before taxes (75.5) 15.1 (90.6) NM Income taxes (9.5) 4.7 (14.2) (302.4) --------- --------- --------- -------- (Loss) earnings from continuing operations (66.0) 10.4 (76.4) NM Earnings from discontinued operations, net of tax - 0.1 (0.1) (100.0) --------- --------- --------- -------- Net (loss) earnings $ (66.0) $ 10.5 $ (76.5) NM% ========= ========= ========= ======== Basic (loss) earnings per share on common stock (Loss) earnings from continuing operations $ (1.89) $ 0.30 $ (2.19) NM% Earnings from discontinued operations - - - NM Net (loss) earnings (1.89) 0.30 (2.19) NM Diluted (loss) earnings per share on common stock (Loss) earnings from continuing operations $ (1.89) $ 0.30 $ (2.19) NM% Earnings from discontinued operations - - - NM Net (loss) earnings (1.89) 0.30 (2.19) NM --------- --------- --------- -------- STATISTICS: Gross profit rate 16.7% 17.7% (1.0) pts. Selling, general and administrative expenses: % of revenue 18.8 16.7 2.1 % of gross profit 112.7 94.2 18.5 % Return - (Loss) earnings from operations (7.2) 1.0 (8.2) (Loss) earnings from continuing operations before taxes (7.3) 1.0 (8.3) (Loss) earnings from continuing operations (6.4) 0.7 (7.1) Net (loss) earnings (6.4) 0.7 (7.1) Effective income tax rate 12.5% 30.9% (18.4) pts. KELLY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE 26 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008 (UNAUDITED) (In millions of dollars except per share data) 2009 2008 Change % Change --------- ---------- --------- -------- Revenue from services $ 2,071.5 $ 2,840.4 $ (768.9) (27.1)% Cost of services 1,724.3 2,333.1 (608.8) (26.1) --------- ---------- --------- -------- Gross profit 347.2 507.3 (160.1) (31.6) Selling, general and administrative expenses 399.7 479.4 (79.7) (16.6) Asset impairments 52.6 - 52.6 NM --------- ---------- --------- -------- (Loss) earnings from operations (105.1) 27.9 (133.0) (476.6) Other income, net 0.3 0.1 0.2 237.8 --------- ---------- --------- -------- (Loss) earnings from continuing operations before taxes (104.8) 28.0 (132.8) (474.1) Income taxes (22.7) 9.6 (32.3) (337.0) --------- ---------- --------- -------- (Loss) earnings from continuing operations (82.1) 18.4 (100.5) NM Earnings from discontinued operations, net of tax 0.6 0.3 0.3 80.6 --------- ---------- --------- -------- Net (loss) earnings $ (81.5) $ 18.7 $ (100.2) NM% ========= ========== ========= ======== Basic (loss) earnings per share on common stock (Loss) earnings from continuing operations $ (2.36) $ 0.52 $ (2.88) NM% Earnings from discontinued operations 0.02 0.01 0.01 100.0 Net (loss) earnings (2.34) 0.53 (2.87) NM Diluted (loss) earnings per share on common stock (Loss) earnings from continuing operations $ (2.36) $ 0.52 $ (2.88) NM% Earnings from discontinued operations 0.02 0.01 0.01 100.0 Net (loss) earnings (2.34) 0.53 (2.87) NM --------- ---------- --------- -------- STATISTICS: Gross profit rate 16.8% 17.9 (1.1) pts. Selling, general and administrative expenses: % of revenue 19.3 16.9 2.4 % of gross profit 115.1 94.5 20.6 % Return - (Loss) earnings from operations (5.1) 1.0 (6.1) (Loss) earnings from continuing operations before taxes (5.1) 1.0 (6.1) (Loss) earnings from continuing operations (4.0) 0.6 (4.6) Net (loss) earnings (3.9) 0.7 (4.6) Effective income tax rate 21.7% 34.2% (12.5) pts. KELLY SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (UNAUDITED) (In millions of dollars) Second Quarter ------------------------------------------------- Constant Currency 2009 2008 Change Change ----------- ----------- ---------- ---------- Americas Commercial Revenue from services (including fee-based income) $ 473.0 $ 656.8 (28.0)% (26.4)% Fee-based income 1.6 4.4 (65.1) (63.7) Gross profit 70.6 102.5 (31.1) (29.8) SG&A expenses 68.6 82.8 (17.2) (15.6) Earnings from operations 2.0 19.7 (89.8) Gross profit rate 14.9% 15.6% (0.7) pts. Expense rates: % of revenue 14.5 12.6 1.9 % of gross profit 97.1 80.8 16.3 Operating margin 0.4 3.0 (2.6) Americas PT Revenue from services (including fee-based income) $ 194.8 $ 245.5 (20.7)% (20.5)% Fee-based income 2.3 5.4 (57.7) (57.6) Gross profit 32.2 42.8 (24.7) (24.5) SG&A expenses 25.6 28.4 (10.1) (9.7) Earnings from operations 6.6 14.4 (53.6) Gross profit rate 16.5% 17.4% (0.9) pts. Expense rates: % of revenue 13.1 11.6 1.5 % of gross profit 79.2 66.3 12.9 Operating margin 3.4 5.9 (2.5) EMEA Commercial Revenue from services (including fee-based income) $ 211.7 $ 351.7 (39.8)% (28.4)% Fee-based income 3.9 11.1 (65.2) (58.0) Gross profit 34.4 61.1 (43.8) (33.4) SG&A expenses 39.7 59.8 (33.6) (21.5) Earnings from operations (5.3) 1.3 NM Earnings from operations (excluding restructuring charges) (2.9) 1.3 (320.1) Gross profit rate 16.2% 17.4% (1.2) pts. Expense rates: % of revenue 18.8 17.0 1.8 % of gross profit 115.6 97.8 17.8 Operating margin (2.5) 0.4 (2.9) EMEA PT Revenue from services (including fee-based income) $ 33.1 $ 46.3 (28.6)% (15.6)% Fee-based income 3.8 7.7 (50.8) (40.5) Gross profit 8.8 14.1 (37.5) (25.8) SG&A expenses 10.1 12.7 (20.3) (5.0) Earnings from operations (1.3) 1.4 (196.6) Gross profit rate 26.6% 30.4% (3.8) pts. Expense rates: % of revenue 30.6 27.4 3.2 % of gross profit 115.1 90.3 24.8 Operating margin (4.0) 3.0 (7.0) KELLY SERVICES, INC.