Kelly Services Reports 4% Revenue Increase and 19% Operating Earnings Growth for Fourth Quarter 2007
Kelly Services Reports 4% Revenue Increase and 19% Operating Earnings Growth for Fourth Quarter 2007
January 24, 2008
4Q2007Final.pdf 105.4 KB
TROY, MI (January 24, 2008) -- Kelly Services, Inc., a global provider of staffing services, today announced results for the fourth quarter and year ended December 30, 2007.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2007 totaled $1.5 billion, a 4% increase compared to the $1.4 billion for the corresponding quarter in 2006. Revenue for the full year totaled $5.7 billion, a 2% increase compared to the $5.5 billion for the full year of 2006.
Earnings from operations for the fourth quarter of 2007 totaled $26.5 million, a 19% increase compared to $22.3 million reported for the fourth quarter of 2006. Included in earnings from operations in the quarter are $1.4 million of restructuring costs related to our Americas Commercial operations.
Earnings from operations for the full year of 2007 totaled $80.1 million, a 3% increase compared to $78.0 million reported for 2006. Included in earnings from operations for the year are $8.9 million of costs related to the restructuring of our Americas Commercial and UK operations.
Diluted earnings per share from continuing operations in the fourth quarter of 2007 were $0.52, a decrease of 7% as compared to fourth quarter 2006 earnings of $0.56 per share. Included in fourth quarter diluted earnings is the $0.02 per share cost of the Americas Commercial restructuring. The effective tax rate for continuing operations in the fourth quarter was 33.0%, which is significantly higher than the 11.3% rate in the prior year. In 2006, Work Opportunity Credits in the U.S. were reinstated in the fourth quarter. As a result, we recognized the impact of an entire year's worth of credits in the fourth quarter.
Diluted earnings per share from continuing operations for the full year of 2007 were $1.47, a decrease of 6% as compared to 2006 earnings of $1.56 per share. Included in 2007 diluted earnings per share from continuing operations is the $0.21 per share cost of the Americas Commercial and UK restructuring.
Commenting on the results, Camden said, "Despite continued weakness in the U.S. staffing market, we're pleased that we delivered solid profitable results. We accomplished a number of key strategic objectives during the quarter as we continue to diversify geographically and move into higher margin fee based businesses.
"Revenue in our Americas Commercial segment, which accounted for 47% of total sales, decreased 6% year over year in the fourth quarter. Operating earnings totaled $25.0 million, and decreased 16% compared to last year. Included in the segment operating earnings are $1.4 million of restructuring costs. We have completed our America's restructuring at a total cost of approximately $3.0 million, or $0.05 per share.
"Revenue in the Americas PTSA segment, which accounted for 20% of total sales, increased 6% year over year in the fourth quarter. Operating earnings totaled $17.4 million and increased 16% on a year over year basis.
"Revenue in our International Commercial segment, which accounted for 29% of total sales, increased 19% year over year in the fourth quarter. On a constant currency basis, revenue increased 8%. The segment operating earnings totaled $5.7 million, up significantly compared to $255 thousand the prior year.
"Revenue in our International PTSA segment, which accounted for 4% of total sales, increased 30% year over year in the fourth quarter. On a constant currency basis, revenue increased 17%. Operating earnings totaled $975 thousand, an increase of 288% compared to earnings of $251 thousand the prior year.
"Corporate expenses totaled $22.5 million, a decrease of 2% compared to the prior year.
Mr. Camden added, "We expect first quarter 2008 earnings to be in the range of $0.19 to $0.23 per share, compared to $0.14 per share from continuing operations in the first quarter of 2007. Included in the first quarter 2007 earnings from continuing operations are $.07 of UK restructuring costs.
In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on January 24, 2008 to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Telephone: U.S. 1-800-230-1059 International 1-612-332-0226
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 projections contained herein.
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a world leader in human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement. Kelly operates in 37 countries and territories. Kelly provides employment to more than 750,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care. Revenue in 2007 was $5.7 billion. Visit www.kellyservices.com.
Click Here to view Financial Tables
ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com
MEDIA CONTACT:
Renee Walker
(248) 244-4305
renee_walker@kellyservices.com
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2007 totaled $1.5 billion, a 4% increase compared to the $1.4 billion for the corresponding quarter in 2006. Revenue for the full year totaled $5.7 billion, a 2% increase compared to the $5.5 billion for the full year of 2006.
Earnings from operations for the fourth quarter of 2007 totaled $26.5 million, a 19% increase compared to $22.3 million reported for the fourth quarter of 2006. Included in earnings from operations in the quarter are $1.4 million of restructuring costs related to our Americas Commercial operations.
Earnings from operations for the full year of 2007 totaled $80.1 million, a 3% increase compared to $78.0 million reported for 2006. Included in earnings from operations for the year are $8.9 million of costs related to the restructuring of our Americas Commercial and UK operations.
Diluted earnings per share from continuing operations in the fourth quarter of 2007 were $0.52, a decrease of 7% as compared to fourth quarter 2006 earnings of $0.56 per share. Included in fourth quarter diluted earnings is the $0.02 per share cost of the Americas Commercial restructuring. The effective tax rate for continuing operations in the fourth quarter was 33.0%, which is significantly higher than the 11.3% rate in the prior year. In 2006, Work Opportunity Credits in the U.S. were reinstated in the fourth quarter. As a result, we recognized the impact of an entire year's worth of credits in the fourth quarter.
Diluted earnings per share from continuing operations for the full year of 2007 were $1.47, a decrease of 6% as compared to 2006 earnings of $1.56 per share. Included in 2007 diluted earnings per share from continuing operations is the $0.21 per share cost of the Americas Commercial and UK restructuring.
Commenting on the results, Camden said, "Despite continued weakness in the U.S. staffing market, we're pleased that we delivered solid profitable results. We accomplished a number of key strategic objectives during the quarter as we continue to diversify geographically and move into higher margin fee based businesses.
"Revenue in our Americas Commercial segment, which accounted for 47% of total sales, decreased 6% year over year in the fourth quarter. Operating earnings totaled $25.0 million, and decreased 16% compared to last year. Included in the segment operating earnings are $1.4 million of restructuring costs. We have completed our America's restructuring at a total cost of approximately $3.0 million, or $0.05 per share.
"Revenue in the Americas PTSA segment, which accounted for 20% of total sales, increased 6% year over year in the fourth quarter. Operating earnings totaled $17.4 million and increased 16% on a year over year basis.
"Revenue in our International Commercial segment, which accounted for 29% of total sales, increased 19% year over year in the fourth quarter. On a constant currency basis, revenue increased 8%. The segment operating earnings totaled $5.7 million, up significantly compared to $255 thousand the prior year.
"Revenue in our International PTSA segment, which accounted for 4% of total sales, increased 30% year over year in the fourth quarter. On a constant currency basis, revenue increased 17%. Operating earnings totaled $975 thousand, an increase of 288% compared to earnings of $251 thousand the prior year.
"Corporate expenses totaled $22.5 million, a decrease of 2% compared to the prior year.
Mr. Camden added, "We expect first quarter 2008 earnings to be in the range of $0.19 to $0.23 per share, compared to $0.14 per share from continuing operations in the first quarter of 2007. Included in the first quarter 2007 earnings from continuing operations are $.07 of UK restructuring costs.
In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on January 24, 2008 to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Telephone: U.S. 1-800-230-1059 International 1-612-332-0226
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 projections contained herein.
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a world leader in human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement. Kelly operates in 37 countries and territories. Kelly provides employment to more than 750,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care. Revenue in 2007 was $5.7 billion. Visit www.kellyservices.com.
Click Here to view Financial Tables
ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com
MEDIA CONTACT:
Renee Walker
(248) 244-4305
renee_walker@kellyservices.com