(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 third quarter of 2009.
Carl T. Camden, President and Chief Executive Officer, announced
revenue for the third quarter of 2009 totaled $1.0 billion, a 25%
decrease compared to the corresponding quarter in 2008. On a
constant currency basis, revenue decreased by 22%.
Losses from operations for the third quarter of 2009 totaled $28.0
million, compared to losses from operations of $14.5 million reported
for the third quarter of 2008. Included in the results from
operations are legal charges of $4.3 million in the third quarter of
2009 and $22.5 million in the third quarter of 2008.
Diluted losses per share from continuing operations in the third
quarter of 2009 were $0.43 compared to third quarter 2008 losses of
$0.33 per share. The legal charges totaled $0.08 per share in the
third quarter of 2009 and $0.40 per share in the third quarter of
2008.
Commenting on the third quarter results, Camden was cautiously
optimistic. "We are seeing signs that the global economy is picking up
steam and job losses are stabilizing," he said. "In the past few
months, trends have shown modest improvement, and we're particularly
encouraged by the steady, sequential nature of that upturn."
Camden added that job creation may lag for a while. "Employers are
understandably concerned about the sustainability of this recovery
and likely will be guarded about expanding their workforce.
"In the meantime, Kelly has done an excellent job of streamlining,
managing costs, maintaining a strong balance sheet, and serving our
customers. Today, we're a more agile and focused company. We believe
we're in a very good position to grow with this economy."
In conjunction with its third quarter earnings release, Kelly
Services, Inc. will host a conference call at 9:00 a.m. (ET) on
November 6, 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 1 612 234-9959
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.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a world
leader in workforce management services and human resources
solutions. Kelly offers a comprehensive array of temporary staffing,
permanent placement, outsourcing, and consulting services. Kelly
serves clients around the globe and provides employment to 650,000
employees annually. 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 SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)
%
2009 2008 Change Change
-------- -------- ------- ------
Revenue from services $1,049.2 $1,397.8 $(348.6) (24.9)%
Cost of services 883.0 1,152.1 (269.1) (23.3)
-------- -------- ------- ------
Gross profit 166.2 245.7 (79.5) (32.4)
Selling, general and
administrative expenses 193.7 260.2 (66.5) (25.6)
Asset impairments 0.5 - 0.5 NM
-------- -------- ------- ------
Loss from operations (28.0) (14.5) (13.5) (92.6)
Other expense, net (1.6) (0.1) (1.5) NM
-------- -------- ------- ------
Loss from continuing
operations before taxes (29.6) (14.6) (15.0) (102.2)
Income taxes (14.8) (3.1) (11.7) (375.4)
-------- -------- ------- ------
Loss from continuing
operations (14.8) (11.5) (3.3) (28.6)
Loss from discontinued
operations, net of tax - (0.7) 0.7 100.0
-------- -------- ------- ------
Net loss $ (14.8) $ (12.2) $ (2.6) (21.6)%
======== ======== ======= ======
Basic loss per share on
common stock
Loss from continuing
operations $ (0.43) $ (0.33) $ (0.10) (30.3)%
Loss from discontinued
operations - (0.02) 0.02 100.0
Net loss (0.43) (0.35) (0.08) (22.9)
Diluted loss per share on
common stock
Loss from continuing
operations $ (0.43) $ (0.33) $ (0.10) (30.3)%
Loss from discontinued
operations - (0.02) 0.02 100.0
Net loss (0.43) (0.35) (0.08) (22.9)
-------- -------- ------- ------
STATISTICS:
Gross profit rate 15.8% 17.6% (1.8) pts.
Selling, general and
administrative expenses:
% of revenue 18.5 18.6 (0.1)
% of gross profit 116.5 105.9 10.6
% Return - Loss from operations (2.7) (1.0) (1.7)
Loss from continuing
operations before taxes (2.8) (1.0) (1.8)
Loss from continuing
operations (1.4) (0.8) (0.6)
Net loss (1.4) (0.9) (0.5)
Effective income tax rate 49.9% 21.2% 28.7 pts.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)
%
2009 2008 Change Change
-------- -------- --------- ------
Revenue from services $3,120.7 $4,238.2 $(1,117.5) (26.4)%
Cost of services 2,607.3 3,485.2 (877.9) (25.2)
-------- -------- --------- ------
Gross profit 513.4 753.0 (239.6) (31.8)
Selling, general and
administrative expenses 593.4 739.6 (146.2) (19.8)
Asset impairments 53.1 - 53.1 NM
-------- -------- --------- ------
(Loss) earnings from
operations (133.1) 13.4 (146.5) NM
Other expense, net (1.3) - (1.3) NM
-------- -------- --------- ------
(Loss) earnings from
continuing operations before
taxes (134.4) 13.4 (147.8) NM
Income taxes (37.5) 6.5 (44.0) NM
-------- -------- --------- ------
(Loss) earnings from
continuing operations (96.9) 6.9 (103.8) NM
Earnings (loss) from
discontinued operations, net
of tax 0.6 (0.4) 1.0 273.7
-------- -------- --------- ------
Net (loss) earnings $ (96.3) $ 6.5 $ (102.8) NM%
======== ======== ========= ======
Basic (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (2.78) $ 0.19 $ (2.97) NM%
Earnings (loss) from
discontinued operations 0.02 (0.01) 0.03 300.0
Net (loss) earnings (2.76) 0.19 (2.95) NM
Diluted (loss) earnings per
share on common stock
(Loss) earnings from
continuing operations $ (2.78) $ 0.19 $ (2.97) NM%
Earnings (loss) from
discontinued operations 0.02 (0.01) 0.03 300.0
Net (loss) earnings (2.76) 0.19 (2.95) NM
-------- -------- --------- ------
STATISTICS:
Gross profit rate 16.5% 17.8% (1.3) pts.
Selling, general and
administrative expenses:
% of revenue 19.0 17.5 1.5
% of gross profit 115.6 98.2 17.4
% Return - (Loss) earnings
from operations (4.3) 0.3 (4.6)
(Loss) earnings from
continuing operations
before taxes (4.3) 0.3 (4.6)
(Loss) earnings from
continuing operations (3.1) 0.2 (3.3)
Net (loss) earnings (3.1) 0.2 (3.3)
Effective income tax rate 27.9% 48.5% (20.6) pts.
KELLY SERVICES, INC.