Kelly Services Reports 4th Quarter and Full Year 2008 Results
TROY, MI (January 22, 2009) -- Kelly Services, Inc., a world leader in human resources solutions, today announced results for the fourth quarter and year ended December 28, 2008.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2008 totaled $1.3 billion, a 13% decrease compared to the corresponding quarter in 2007. Revenue for the full year totaled $5.5 billion, a 3% decrease compared to 2007.
Losses from operations for the fourth quarter of 2008 totaled $83.6 million, compared to earnings from operations of $26.5 million reported for the fourth quarter of 2007. Included in the results from operations for the fourth quarter 2008 are impairment charges totaling $80.5 million and $1.5 million of restructuring costs relating to the Company's UK operations. Earnings from operations in the fourth quarter 2007 included $1.3 million of restructuring costs related primarily to our Americas Commercial operations. Excluding the impairment and restructuring charges, the loss from operations was $1.6 million for the fourth quarter of 2008, compared to earnings from operations of $27.9 million in the fourth quarter of 2007.
Losses from operations for the full year of 2008 totaled $70.3 million, compared to earnings from operations of $80.1 million in 2007. The results for the full year 2008 include the $80.5 million of impairment charges, the $1.5 million of restructuring in the UK as well as a $22.5 million third quarter charge related to several litigation matters. Included in earnings from operations for 2007 are $8.9 million of costs related to the restructuring of the Americas Commercial and UK operations.
Diluted losses per share from continuing operations in the fourth quarter of 2008 were $2.55, compared to fourth quarter 2007 earnings of $0.52 per share. The impairment charges totaled $2.22 per share and the UK restructuring charges totaled $0.04 per share in 2008. Fourth quarter 2007 diluted earnings include the $0.02 per share cost of the Americas Commercial restructuring.
Diluted losses per share from continuing operations for the full year of 2008 were $2.35, compared to 2007 earnings per share of $1.47. The impairment charges totaled $2.22, the UK restructuring charges totaled $0.04 and the litigation charges totaled $0.40 per diluted share from continuing operations in 2008. The Americas Commercial and UK restructuring costs totaled $0.21 per share in 2007.
The fourth quarter impairment charges include adjustments to the value of goodwill for the Company's EMEA Commercial segment, the Company's investment in Temp Holdings Co. Ltd. (formerly Tempstaff), a Japanese staffing company, and assets related to operations in the UK. The UK restructuring charge is part of a plan to further consolidate and close branches in the UK during 2009.
Commenting on the fourth quarter results, Camden called the Company's loss disappointing, but not unexpected.
"This year, we've witnessed a widespread economic slowdown as anxiety over the global financial crisis intensified. With the loss of 2.6 million jobs in the U.S. alone, it comes as no surprise that demand for temporary staffing has declined dramatically - here, and throughout the world."
Camden emphasized that Kelly is making prudent decisions to reduce costs and be responsive to the economic times. He added that the Company continues to execute a strategic plan aimed at building long-term value for its stakeholders.
"We remain focused on diversifying globally, expanding our professional and technical staffing, and growing our outsourcing and consulting services," said Camden.
In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on January 22, 2009 to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Telephone:
|U.S.||1 888 428-4480|
|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:
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, 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 to clients on a global basis. 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 2008 was $5.5 billion. Visit www.kellyservices.com.