Kelly Services Reports 1st Quarter 2010 Results
TROY, MI (May 12, 2010) -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the first quarter of 2010.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the first quarter of 2010 totaled $1.1 billion, an 8% increase compared to the corresponding quarter in 2009. On a constant currency basis, revenue increased by 4%.
Losses from operations for the first quarter of 2010 totaled $1.6 million, compared to losses from operations of $30.6 million reported for the first quarter of 2009. Included in the results from operations for the first quarter of 2010 are restructuring charges of $4.4 million. The loss from operations in the first quarter of 2009 included restructuring and litigation charges of $8.1 million. Excluding the restructuring and litigation charges, earnings from operations were $2.8 million in the first quarter of 2010 compared to a loss from operations of $22.5 million in 2009.
Diluted losses per share from continuing operations in the first quarter of 2010 were $0.06 compared to first quarter 2009 losses of $0.46 per share. The restructuring and litigation charges totaled $0.10 per share in the first quarter of 2010 and $0.21 per share in the first quarter of 2009.
Commenting on the first quarter results, Camden was optimistic. "After many months, we were pleased to see the economy pick up and note positive trends in our business. Combined with our ongoing focus on cost control, those factors helped us return to profitability in what has typically been a weak quarter for our industry."
That said, Camden expects 2010 will continue to be a challenging year for Kelly, but also a year of opportunities. “It’s important that we keep a careful eye on managing costs to gain the greatest leverage as this recovery strengthens. At the same time, as the workforce solutions market expands, Kelly is redefining itself in the marketplace. And our new strategic alliance with Temp Holdings enhances our ability to execute our long-term strategy, and grow our business in two critical staffing markets.
Camden said while the Company will look to maximize profits across all operations, it will concentrate on accelerating growth of higher-margin Professional & Technical disciplines, as well as outsourcing and consulting services. “Our customers’ needs are changing, and Kelly is responding with a broad array of flexible, customized workforce solutions.”
In conjunction with its first quarter earnings release, Kelly Services, Inc. will host a conference call at 8:30 a.m. (ET) on May 12, 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 1 651 291-5254
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.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a leader in providing workforce solutions. Kelly offers a comprehensive array of outsourcing and consulting servicesas well asworld-classstaffing on a temporary, temp-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to 480,000 employees annually. Revenue in 2009 was $4.3 billion. Visit www.kellyservices.com.