Current Report

 
 
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 6, 2009
KELLY SERVICES, INC.
(Exact name of registrant as specified in its charter)
         
DELAWARE   0-1088   38-1510762
         
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer Identification No.)
     

999 WEST BIG BEAVER ROAD, TROY, MICHIGAN 		   
48084
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (248) 362-4444
 
(Former name or former address, if changed since last report.)
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:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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 months and nine months ended September 27, 2009. 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 6, 2009.

 

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.
  		 
Date: November 6, 2009 

   
  /s/ Patricia Little    
  Patricia Little   
  Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)  		 
 
Date: November 6, 2009
         
  /s/ Michael E. Debs    
  Michael E. Debs   
  Senior Vice President and
Chief Accounting Officer
(Principal Accounting Officer)  		 
 

 

3

 

EXHIBIT INDEX
     
Exhibit No.   Description
 
   
99.1
  Press release dated November 6, 2009

 

4

Exhibit 99.1
(LOGO)
KELLY SERVICES REPORTS 3rd QUARTER 2009 RESULTS
TROY, MI (November 6, 2009) — Kelly Services, Inc., 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 awhile. “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

 

1

 

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, 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.
     
ANALYST CONTACT :
  MEDIA CONTACT :
James Polehna
  Judith Clark
(248) 244-4586
  (248) 244-5362
james_polehna@kellyservices.com
  judith_clark@kellyservices.com

 

2

 

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.      

 

3

 

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.      

 

4

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    Third Quarter  
                            Constant  
                            Currency  
    2009     2008     Change     Change  
Americas Commercial
                               
Revenue from services (including fee-based income)
  $ 467.5     $ 621.6       (24.8 )%     (23.6 )%
Fee-based income
    1.7       4.3       (60.3 )     (59.3 )
Gross profit
    67.2       95.2       (29.4 )     (28.4 )
SG&A expenses
    67.8       83.3       (18.7 )     (17.7 )
Earnings from operations
    (0.6 )     11.9       (104.8 )        
 
                               
Gross profit rate
    14.4 %     15.3 %   (0.9 ) pts.        
Expense rates:
                               
% of revenue
    14.5       13.4       1.1          
% of gross profit
    100.8       87.6       13.2          
Operating margin
    (0.1 )     1.9       (2.0 )        
 
                               
Americas PT
                               
Revenue from services (including fee-based income)
  $ 192.1     $ 234.8       (18.2 )%     (18.1 )%
Fee-based income
    2.1       5.0       (57.3 )     (57.2 )
Gross profit
    29.5       39.1       (24.5 )     (24.4 )
SG&A expenses
    24.6       28.9       (14.6 )     (14.5 )
Earnings from operations
    4.9       10.2       (52.7 )        
 
                               
Gross profit rate
    15.4 %     16.6 %   (1.2 ) pts.        
Expense rates:
                               
% of revenue
    12.9       12.3       0.6          
% of gross profit
    83.7       74.0       9.7          
Operating margin
    2.5       4.3       (1.8 )        
 
                               
EMEA Commercial
                               
Revenue from services (including fee-based income)
  $ 228.0     $ 353.6       (35.5 )%     (29.5 )%
Fee-based income
    3.7       10.2       (64.5 )     (60.1 )
Gross profit
    33.9       63.0       (46.2 )     (41.4 )
SG&A expenses
    39.5       59.0       (33.2 )     (27.8 )
Earnings from operations
    (5.6 )     4.0       (237.9 )        
 
                               
Gross profit rate
    14.9 %     17.8 %   (2.9 ) pts.        
Expense rates:
                               
% of revenue
    17.3       16.7       0.6          
% of gross profit
    116.3       93.6       22.7          
Operating margin
    (2.4 )     1.1       (3.5 )        
 
                               
EMEA PT
                               
Revenue from services (including fee-based income)
  $ 36.4     $ 44.0       (17.3 )%     (10.7 )%
Fee-based income
    3.9       6.7       (40.5 )     (33.6 )
Gross profit
    9.8       12.9       (23.8 )     (16.9 )
SG&A expenses
    9.9       12.5       (20.2 )     (13.1 )
Earnings from operations
    (0.1 )     0.4       (131.7 )        
 
                               
Gross profit rate
    27.0 %     29.3 %   (2.3 ) pts.        
Expense rates:
                               
% of revenue
    27.3       28.3       (1.0 )        
% of gross profit
    101.3       96.8       4.5          
Operating margin
    (0.4 )     0.9       (1.3 )        

 

5

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
                                 
    Third Quarter  
                            Constant  
                            Currency  
    2009     2008     Change     Change  
APAC Commercial
                               
Revenue from services (including fee-based income)
  $ 71.2     $ 84.9       (16.2 )%     (12.0 )%
Fee-based income
    2.3       4.5       (48.4 )     (46.5 )
Gross profit
    10.3       14.7       (29.6 )     (26.4 )
SG&A expenses
    11.5       14.5       (20.8 )     (17.6 )
Earnings from operations
    (1.2 )     0.2     NM          
 
                               
Gross profit rate
    14.5 %     17.3 %   (2.8 ) pts.        
Expense rates:
                               
% of revenue
    16.1       17.1       (1.0 )        
% of gross profit
    111.1       98.7       12.4          
Operating margin
    (1.6 )     0.2       (1.8 )        
 
                               
APAC PT
                               
Revenue from services (including fee-based income)
  $ 6.5     $ 9.2       (29.7 )%     (28.0 )%
Fee-based income
    1.0       1.5       (32.7 )     (30.1 )
Gross profit
    2.0       2.8       (31.6 )     (29.7 )
SG&A expenses
    2.3       2.7       (14.7 )     (10.6 )
Earnings from operations
    (0.3 )     0.1       (347.6 )        
 
                               
Gross profit rate
    30.3 %     31.2 %   (0.9 ) pts.        
Expense rates:
                               
% of revenue
    35.9       29.6       6.3          
% of gross profit
    118.4       94.9       23.5          
Operating margin
    (5.6 )     1.6       (7.2 )        
 
                               
OCG
                               
Revenue from services (including fee-based income)
  $ 52.9     $ 55.9       (5.4 )%     (4.4 )%
Fee-based income
    5.8       7.4       (21.7 )     (19.4 )
Gross profit
    13.7       18.3       (24.7 )     (23.1 )
SG&A expenses
    17.4       18.4       (5.2 )     (3.3 )
Earnings from operations
    (3.7 )     (0.1 )   NM          
 
                               
Gross profit rate
    26.1 %     32.8 %   (6.7 ) pts.        
Expense rates:
                               
% of revenue
    33.0       32.9       0.1          
% of gross profit
    126.6       100.5       26.1          
Operating margin
    (6.9 )     (0.2 )     (6.7 )        
 
                               
Corporate Expense
  $ (20.9 )   $ (41.2 )     49.3 %        

 

6

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                                 
    September Year to Date  
                            Constant  
                            Currency  
    2009     2008     Change     Change  
Americas Commercial
                               
Revenue from services (including fee-based income)
  $ 1,422.9     $ 1,921.1       (25.9 )%     (24.3 )%
Fee-based income
    5.1       12.9       (60.9 )     (58.7 )
Gross profit
    210.9       302.6       (30.3 )     (28.9 )
SG&A expenses
    209.0       248.8       (16.0 )     (14.4 )
Earnings from operations
    1.9       53.8       (96.4 )        
 
                               
Gross profit rate
    14.8 %     15.8 %   (1.0 ) pts.        
Expense rates:
                               
% of revenue
    14.7       13.0       1.7          
% of gross profit
    99.1       82.2       16.9          
Operating margin
    0.1       2.8       (2.7 )        
 
                               
Americas PT
                               
Revenue from services (including fee-based income)
  $ 584.3     $ 718.9       (18.7 )%     (18.6 )%
Fee-based income
    7.2       15.7       (54.2 )     (54.1 )
Gross profit
    93.2       124.2       (25.0 )     (24.8 )
SG&A expenses
    76.4       85.5       (10.6 )     (10.3 )
Earnings from operations
    16.8       38.7       (56.7 )        
 
                               
Gross profit rate
    15.9 %     17.3 %   (1.4 ) pts.        
Expense rates:
                               
% of revenue
    13.1       11.9       1.2          
% of gross profit
    82.0       68.9       13.1          
Operating margin
    2.9       5.4       (2.5 )        
 
                               
EMEA Commercial
                               
Revenue from services (including fee-based income)
  $ 656.3     $ 1,027.2       (36.1 )%     (25.5 )%
Fee-based income
    12.3       32.0       (61.6 )     (54.3 )
Gross profit
    102.8       179.7       (42.8 )     (33.6 )
SG&A expenses
    125.8       176.0       (28.5 )     (18.1 )
Earnings from operations
    (23.0 )     3.7     NM          
 
                               
Gross profit rate
    15.7 %     17.5 %   (1.8 ) pts.          
Expense rates:
                               
% of revenue
    19.2       17.1       2.1          
% of gross profit
    122.4       97.9       24.5          
Operating margin
    (3.5 )     0.4       (3.9 )        
 
                               
EMEA PT
                               
Revenue from services (including fee-based income)
  $ 102.3     $ 134.1       (23.7 )%     (12.1 )%
Fee-based income
    12.1       21.3       (42.9 )     (32.1 )
Gross profit
    28.0       40.0       (30.0 )     (18.7 )
SG&A expenses
    30.0       37.2       (19.2 )     (5.8 )
Earnings from operations
    (2.0 )     2.8       (172.0 )        
 
                               
Gross profit rate
    27.4 %     29.8 %   (2.4 ) pts.      
Expense rates:
                               
% of revenue
    29.4       27.7       1.7          
% of gross profit
    107.2       93.0       14.2          
Operating margin
    (2.0 )     2.1       (4.1 )        

 

7

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)
                                 
    September Year to Date  
                            Constant  
                            Currency  
    2009     2008     Change     Change  
APAC Commercial
                               
Revenue from services (including fee-based income)
  $ 201.9     $ 262.5       (23.1 )%     (13.4 )%
Fee-based income
    6.8       14.0       (51.0 )     (46.1 )
Gross profit
    29.5       44.9       (34.5 )     (26.3 )
SG&A expenses
    33.2       44.2       (25.0 )     (16.3 )
Earnings from operations
    (3.7 )     0.7     NM          
 
Gross profit rate
    14.6 %     17.1 %     (2.5)   pts.        
Expense rates:
                               
% of revenue
    16.4       16.8       (0.4 )        
% of gross profit
    112.5       98.3       14.2          
Operating margin
    (1.8 )     0.3       (2.1 )        
 
                               
APAC PT
                               
Revenue from services (including fee-based income)
  $ 18.2     $ 27.1       (32.8 )%     (26.5 )%
Fee-based income
    2.8       4.3       (34.6 )     (27.8 )
Gross profit
    5.6       8.3       (32.6 )     (26.2 )
SG&A expenses
    6.6       8.5       (22.7 )     (13.0 )
Earnings from operations
    (1.0 )     (0.2 )     (362.0 )        
 
Gross profit rate
    30.8 %     30.7 %     0.1   pts.        
Expense rates:
                               
% of revenue
    36.3       31.5       4.8          
% of gross profit
    117.8       102.6       15.2          
Operating margin
    (5.5 )     (0.8 )     (4.7 )        
 
                               
OCG
                               
Revenue from services (including fee-based income)
  $ 151.7     $ 164.9       (8.0 )%     (6.1 )%
Fee-based income
    18.4       20.6       (10.9 )     (5.8 )
Gross profit
    44.2       54.0       (18.0 )     (14.9 )
SG&A expenses
    52.3       51.6       1.3       5.4  
Earnings from operations
    (8.1 )     2.4       (452.5 )        
 
Gross profit rate
    29.2 %     32.7 %     (3.5)   pts.        
Expense rates:
                               
% of revenue
    34.5       31.3       3.2          
% of gross profit
    118.3       95.8       22.5          
Operating margin
    (5.3 )     1.4       (6.7 )        
 
                               
Corporate Expense
  $ (60.9 )   $ (88.5 )     31.2 %        

 

8

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
                         
    September 27,     December 28,     September 28,  
    2009     2008     2008  
Current Assets
                       
Cash and equivalents
  $ 91.0     $ 118.3     $ 113.6  
Trade accounts receivable, less allowances of $15.7, $17.0 and $18.6, respectively
    707.3       815.8       913.7  
Prepaid expenses and other current assets
    54.3       62.0       59.7  
Deferred taxes
    25.7       31.9       30.2  
 
                 
 
Total current assets
    878.3       1,028.0       1,117.2  
 
                       
Property and Equipment, Net
    132.5       151.3       168.3  
 
                       
Noncurrent Deferred Taxes
    66.0       40.0       48.6  
 
                       
Goodwill, Net
    67.3       117.8       161.4  
 
                       
Other Assets
    134.6       120.2       134.2  
 
                       
 
                 
 
Total Assets
  $ 1,278.7     $ 1,457.3     $ 1,629.7  
 
                 
 
                       
Current Liabilities
                       
Short-term borrowings and current portion of long-term debt
  $ 15.3     $ 35.2     $ 63.3  
Accounts payable and accrued liabilities
    201.9       244.1       242.1  
Accrued payroll and related taxes
    229.6       243.2       282.0  
Accrued insurance
    25.0       26.3       23.3  
Income and other taxes
    29.8       51.8       62.4  
 
                 
 
Total current liabilities
    501.6       600.6       673.1  
 
                       
Noncurrent Liabilities
                       
Long-term debt
    66.0       80.0       51.2  
Accrued insurance
    43.9       46.9       59.5  
Accrued retirement benefits
    74.0       61.6       70.2  
Other long-term liabilities
    14.2       15.3       17.0  
 
                 
 
Total noncurrent liabilities
    198.1       203.8       197.9  
 
                       
Stockholders’ Equity
                       
Common stock
    40.1       40.1       40.1  
Treasury stock
    (107.6 )     (111.2 )     (111.3 )
Paid-in capital
    35.9       35.8       34.5  
Earnings invested in the business
    579.7       676.0       769.6  
Accumulated other comprehensive income
    30.9       12.2       25.8  
 
                 
 
                       
Total stockholders’ equity
    579.0       652.9       758.7  
 
                 
 
                       
Total Liabilities and Stockholders’ Equity
  $ 1,278.7     $ 1,457.3     $ 1,629.7  
 
                 
 
STATISTICS:
                       
Working Capital
  $ 376.7     $ 427.4     $ 444.1  
Current Ratio
    1.8       1.7       1.7  
Debt-to-capital %
    12.3 %     15.0 %     13.1 %
Global Days Sales Outstanding
    52       50       51  

 

9

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
(UNAUDITED)
(In millions of dollars)
                 
    2009     2008  
Cash flows from operating activities
               
Net (loss) earnings
  $ (96.3 )   $ 6.5  
Noncash adjustments:
               
Impairment of assets
    53.1       —  
Depreciation and amortization
    30.9       34.1  
Provision for bad debts
    2.7       4.8  
Stock-based compensation
    3.6       3.0  
Other, net
    (4.0 )     1.8  
Changes in operating assets and liabilities
    50.7       36.2  
 
           
 
               
Net cash from operating activities
    40.7       86.4  
 
           
 
               
Cash flows from investing activities
               
Capital expenditures
    (7.9 )     (23.5 )
Acquisition of companies, net of cash received
    (7.5 )     (32.4 )
Other investing activities
    (2.9 )     (0.4 )
 
           
 
               
Net cash from investing activities
    (18.3 )     (56.3 )
 
           
 
Cash flows from financing activities
               
Net change in revolving line of credit
    (11.9 )     12.5  
Repayment of debt
    (22.9 )     —  
Dividend payments
    —       (14.2 )
Purchase of treasury stock
    —       (8.0 )
Other financing activities
    (18.5 )     1.1  
 
           
 
               
Net cash from financing activities
    (53.3 )     (8.6 )
 
           
 
               
Effect of exchange rates on cash and equivalents
    3.6       (0.7 )
 
           
 
               
Net change in cash and equivalents
    (27.3 )     20.8  
Cash and equivalents at beginning of period
    118.3       92.8  
 
           
 
               
Cash and equivalents at end of period
  $ 91.0     $ 113.6  
 
           

 

10

 

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
                                 
    Third Quarter (Commercial, PT and OCG)  
                    % Change  
                            Constant  
    2009     2008     US$     Currency  
 
Americas
                               
United States
  $ 623.1     $ 795.8       (21.7 )%     (21.7 )%
Canada
    48.4       62.1       (22.1 )     (17.7 )
Mexico
    16.7       20.8       (19.9 )     3.0  
Puerto Rico
    12.6       19.3       (34.5 )     (34.5 )
 
                           
Total Americas
    700.8       898.0       (22.0 )     (21.1 )
 
                               
EMEA
                               
France
    69.4       93.7       (25.9 )     (21.6 )
United Kingdom
    50.8       102.5       (50.5 )     (42.7 )
Switzerland
    38.8       49.0       (21.0 )     (21.3 )
Italy
    17.4       33.9       (48.6 )     (45.7 )
Germany
    16.6       21.1       (21.7 )     (17.3 )
Russia
    16.5       25.4       (34.9 )     (16.0 )
Norway
    16.2       24.9       (34.8 )     (23.3 )
Portugal
    15.8       11.9       33.3       40.3  
Other
    26.9       40.4       (33.3 )     (27.9 )
 
                           
Total EMEA
    268.4       402.8       (33.4 )     (27.3 )
 
                               
APAC
                               
Australia
    25.0       33.9       (26.2 )     (20.8 )
Singapore
    16.4       18.7       (11.9 )     (9.2 )
Malaysia
    12.3       13.4       (8.9 )     (4.0 )
Other
    26.3       31.0       (15.3 )     (12.5 )
 
                           
Total APAC
    80.0       97.0       (17.5 )     (13.6 )
 
                               
Total Kelly Services, Inc.
  $ 1,049.2     $ 1,397.8       (24.9) %     (22.4 )%
 
                           

 

11

 

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
                                 
    September Year to Date (Commercial, PT and OCG)  
                    % Change  
                            Constant  
    2009     2008     US$     Currency  
 
Americas
                               
United States
  $ 1,901.2     $ 2,455.6       (22.6 )%     (22.6 )%
Canada
    131.9       187.6       (29.7 )     (19.5 )
Mexico
    47.5       58.1       (18.3 )     6.0  
Puerto Rico
    42.9       58.7       (27.0 )     (27.0 )
 
                           
Total Americas
    2,123.5       2,760.0       (23.1 )     (21.9 )
 
                               
EMEA
                               
France
    194.0       275.7       (29.6 )     (21.6 )
United Kingdom
    163.6       317.3       (48.4 )     (34.2 )
Switzerland
    99.8       143.5       (30.5 )     (27.4 )
Italy
    53.9       106.7       (49.4 )     (43.5 )
Germany
    47.5       65.3       (27.3 )     (19.0 )
Russia
    45.5       68.6       (33.7 )     (10.7 )
Norway
    44.4       69.2       (35.8 )     (20.1 )
Portugal
    40.1       11.9       237.7       274.2  
Other
    82.2       121.7       (32.5 )     (22.7 )
 
                           
Total EMEA
    771.0       1,179.9       (34.7 )     (23.9 )
 
                               
APAC
                               
Australia
    67.9       107.7       (36.9 )     (23.2 )
Singapore
    46.5       55.2       (15.6 )     (10.7 )
Malaysia
    36.4       42.9       (15.3 )     (7.4 )
Other
    75.4       92.5       (18.5 )     (10.7 )
 
                           
Total APAC
    226.2       298.3       (24.1 )     (14.7 )
 
                               
Total Kelly Services, Inc.
  $ 3,120.7     $ 4,238.2       (26.4 )%     (21.9 )%
 
                           

 

12