Kelly Services® Reports 3rd Quarter Results

November 5, 2014

TROY, MI -- (Marketwired) -- 11/05/14 -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the third quarter of 2014.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2014 totaled $1.4 billion, a 3.8% increase compared to the corresponding quarter of 2013.

Earnings from operations for the third quarter of 2014 totaled $7.1 million, compared to $20.2 million reported for the third quarter of 2013. Included in the results of operations in the third quarter of 2014 are restructuring charges of $4.0 million. The results of operations in the third quarter of 2013 included restructuring charges of $0.5 million. Excluding the restructuring charges from both years, earnings from operations were $11.1 million in the third quarter of 2014, compared to adjusted earnings of $20.7 million last year.

Diluted earnings per share in the third quarter of 2014 were $0.03 compared to $0.49 per share in the third quarter of 2013. Adjusted earnings per share were $0.10 in the third quarter of 2014 compared to $0.51 in the third quarter of 2013.

"We're pleased with our third quarter performance," said Camden. "2014 has been a year of aggressive strategic investments at Kelly, and we're seeing early signs that those investments are gaining traction. We are now a leaner, more efficient company that is focused on growth and well-aligned with market demands for high-margin specialty staffing and holistic talent supply chain solutions."

Kelly also reported that on November 4, its board of directors declared a dividend of $0.05 per share. The dividend is payable December 5 to shareholders of record as of the close of business on November 17.

In conjunction with its third quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on November 5, 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, but are not limited to, competitive market pressures including pricing and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, our ability to retain the services of our senior management, local management and field personnel, our ability to adequately protect our intellectual property rights, including our brand, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, liability for improper disclosure of sensitive or private employee information, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry or market developments, unexpected changes in claim trends on workers' compensation, disability and medical benefit plans, the net financial impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax laws and the expiration and/or reinstatement of the U.S. work opportunity credit program), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities, our ability to access credit markets and continued availability of financing for funding working capital, and other risks, uncertainties and 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, and we have no intention to update these statements.

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 services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provided employment to approximately 540,000 employees in 2013. Revenue in 2013 was $5.4 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(UNAUDITED)
(In millions of dollars except per share data)

		2014			2013			Change				% Change

Revenue from services		$	1,396.4		$	1,345.6		$	50.8			3.8	%

Cost of services			1,171.0			1,125.2			45.8			4.1

Gross profit			225.4			220.4			5.0			2.2

Selling, general and administrative expenses			218.3			200.2			18.1			9.0

Earnings from operations			7.1			20.2			(13.1	)		(65.1	)

Other expense, net			2.2			1.3			0.9			(63.1	)

Earnings before taxes			4.9			18.9			(14.0	)		(74.4	)

Income tax expense			3.5			0.1			3.4			NM

Net earnings		$	1.4		$	18.8		$	(17.4	)		(93.0)	%

Basic earnings per share		$	0.03		$	0.49		$	(0.46	)		(93.9)	%
Diluted earnings per share		$	0.03		$	0.49		$	(0.46	)		(93.9)	%


STATISTICS:

Gross profit rate			16.1	%		16.4	%		(0.3	)	pts.

Selling, general and administrative expenses:
	% of revenue		15.6			14.9			0.7
	% of gross profit		96.9			90.8			6.1

% Return:
Earnings from operations			0.5			1.5			(1.0	)
Earnings before taxes			0.3			1.4			(1.1	)
Net earnings			0.1			1.4			(1.3	)

Effective income tax rate			72.7	%		0.3	%		72.4		pts.

Average number of shares outstanding (millions):
	Basic		37.6			37.4
	Diluted		37.6			37.4

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.5			38.1
	Diluted		38.5			38.1


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(UNAUDITED)
(In millions of dollars except per share data)

		2014			2013			Change				% Change

Revenue from services		$	4,137.7		$	4,027.3		$	110.4			2.7	%

Cost of services			3,461.9			3,369.3			92.6			2.8

Gross profit			675.8			658.0			17.8			2.7

Selling, general and administrative expenses			656.5			612.6			43.9			7.2

Asset impairments			--			1.7			(1.7	)		(100.0	)

Earnings from operations			19.3			43.7			(24.4	)		(56.4	)

Other expense, net			4.2			3.9			0.3			(4.6	)

Earnings before taxes			15.1			39.8			(24.7	)		(62.5	)

Income tax expense (benefit)			8.4			(1.9	)		10.3			NM

Net earnings		$	6.7		$	41.7		$	(35.0	)		(84.2)	%

Basic earnings per share		$	0.17		$	1.09		$	(0.92	)		(84.4)	%
Diluted earnings per share		$	0.17		$	1.09		$	(0.92	)		(84.4)	%


STATISTICS:

Gross profit rate			16.3	%		16.3	%		--		pts.

Selling, general and administrative expenses:
	% of revenue		15.9			15.2			0.7
	% of gross profit		97.2			93.1			4.1

% Return:
Earnings from operations			0.5			1.1			(0.6	)
Earnings before taxes			0.4			1.0			(0.6	)
Net earnings			0.2			1.0			(0.8	)

Effective income tax rate			55.9	%		(5.0)	%		60.9		pts.

Average number of shares outstanding (millions):
	Basic		37.5			37.2
	Diluted		37.5			37.3

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.5			38.2
	Diluted		38.5			38.2


KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

			Third Quarter
												Constant
												Currency
			2014			2013			Change			Change
AMERICAS
Commercial
	Revenue from services		$	640.8		$	617.0		3.9		%	4.3	%
	Staffing fee-based income included in revenue from services			3.8			3.3		12.3			12.7
	Gross profit			91.7			86.8		5.7			6.1
	Gross profit rate			14.3	%		14.1	%	0.2		pts.
PT
	Revenue from services		$	242.5		$	239.9		1.1		%	1.2	%
	Staffing fee-based income included in revenue from services			4.4			3.9		13.1			13.4
	Gross profit			39.6			38.8		1.9			2.1
	Gross profit rate			16.3	%		16.2	%	0.1		pts.
Total Americas
	Revenue from services		$	883.3		$	856.9		3.1		%	3.4	%
	Staffing fee-based income included in revenue from services			8.2			7.2		12.7			13.1
	Gross profit			131.3			125.6		4.5			4.8
	Total SG&A expenses			110.8			100.2		10.6			10.9
	Earnings from operations			20.5			25.4		(19.7	)

	Gross profit rate			14.9	%		14.7	%	0.2		pts.
	Expense rates:
		% of revenue		12.5			11.7		0.8
		% of gross profit		84.5			79.8		4.7
	Return on sales			2.3			3.0		(0.7	)

EMEA
Commercial
	Revenue from services		$	231.3		$	224.5		3.0		%	3.2	%
	Staffing fee-based income included in revenue from services			4.2			4.6		(8.9	)		(6.1	)
	Gross profit			33.6			33.9		(0.9	)		(0.4	)
	Gross profit rate			14.5	%		15.1	%	(0.6	)	pts.
PT
	Revenue from services		$	48.1		$	45.1		6.5		%	6.0	%
	Staffing fee-based income included in revenue from services			3.5			3.9		(9.6	)		(7.8	)
	Gross profit			10.9			10.8		0.6			1.0
	Gross profit rate			22.6	%		23.9	%	(1.3	)	pts.
Total EMEA
	Revenue from services		$	279.4		$	269.6		3.6		%	3.6	%
	Staffing fee-based income included in revenue from services			7.7			8.5		(9.3	)		(6.9	)
	Gross profit			44.5			44.7		(0.5	)		(0.1	)
	SG&A expenses excluding restructuring charges			40.0			40.0		--
	Restructuring charges			--			0.3		(100.0	)
	Total SG&A expenses			40.0			40.3		(0.8	)		(0.5	)
	Earnings from operations			4.5			4.4		1.6
	Earnings from operations excluding restructuring charges			4.5			4.7		(5.5	)

	Gross profit rate			15.9	%		16.6	%	(0.7	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		14.3			14.8		(0.5	)
		% of gross profit		90.0			89.5		0.5
	Return on sales (excluding restructuring charges)			1.6			1.7		(0.1	)


KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

			Third Quarter
												Constant
												Currency
			2014			2013			Change			Change
APAC
Commercial
	Revenue from services		$	91.0		$	87.6		3.9		%	2.2	%
	Staffing fee-based income included in revenue from services			2.0			2.3		(15.5	)		(17.3	)
	Gross profit			11.7			12.7		(8.2	)		(9.7	)
	Gross profit rate			12.8	%		14.5	%	(1.7	)	pts.
PT
	Revenue from services		$	10.6		$	9.1		15.8		%	14.4	%
	Staffing fee-based income included in revenue from services			2.0			2.2		(9.9	)		(11.0	)
	Gross profit			3.3			3.4		(2.8	)		(4.0	)
	Gross profit rate			31.5	%		37.5	%	(6.0	)	pts.
Total APAC
	Revenue from services		$	101.6		$	96.7		5.0		%	3.4	%
	Staffing fee-based income included in revenue from services			4.0			4.5		(12.8	)		(14.2	)
	Gross profit			15.0			16.1		(7.0	)		(8.5	)
	SG&A expenses excluding restructuring charges			14.2			14.5		(2.5	)
	Restructuring charges			0.3			0.1		410.5
	Total SG&A expenses			14.5			14.6		(0.9	)		(2.7	)
	Earnings from operations			0.5			1.5		(65.7	)
	Earnings from operations excluding restructuring charges			0.8			1.6		(48.4	)

	Gross profit rate			14.8	%		16.7	%	(1.9	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		14.0			15.1		(1.1	)
		% of gross profit		94.6			90.2		4.4
	Return on sales (excluding restructuring charges)			0.8			1.6		(0.8	)

OCG
	Revenue from services		$	149.8		$	135.3		10.7		%	10.9	%
	Gross profit			35.8			34.8		2.9			2.8
	SG&A expenses excluding restructuring charges			32.2			28.0		15.0
	Restructuring charges			--			0.1		(100.0	)
	Total SG&A expenses			32.2			28.1		14.7			14.7
	Earnings from operations			3.6			6.7		(46.0	)
	Earnings from operations excluding restructuring charges			3.6			6.8		(46.6	)

	Gross profit rate			23.9	%		25.7	%	(1.8	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		21.5			20.7		0.8
		% of gross profit		89.8			80.3		9.5
	Return on sales (excluding restructuring charges)			2.4			5.1		(2.7	)


KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

			September Year to Date
												Constant
												Currency
			2014			2013			Change			Change
AMERICAS
Commercial
	Revenue from services		$	1,915.1		$	1,904.1		0.6		%	1.4	%
	Staffing fee-based income included in revenue from services			10.4			9.8		6.1			7.6
	Gross profit			280.0			274.5		2.0			2.8
	Gross profit rate			14.6	%		14.4	%	0.2		pts.
PT
	Revenue from services		$	723.1		$	733.7		(1.4	)	%	(1.3	)%
	Staffing fee-based income included in revenue from services			11.7			10.8		8.6			9.1
	Gross profit			118.4			116.1		2.0			2.2
	Gross profit rate			16.4	%		15.8	%	0.6		pts.
Total Americas
	Revenue from services		$	2,638.2		$	2,637.8		--		%	0.7	%
	Staffing fee-based income included in revenue from services			22.1			20.6		7.4			8.4
	Gross profit			398.4			390.6		2.0			2.6
	Total SG&A expenses			332.9			310.6		7.2			7.9
	Earnings from operations			65.5			80.0		(18.3	)

	Gross profit rate			15.1	%		14.8	%	0.3		pts.
	Expense rates:
		% of revenue		12.6			11.8		0.8
		% of gross profit		83.6			79.5		4.1
	Return on sales			2.5			3.0		(0.5	)

EMEA
Commercial
	Revenue from services		$	690.2		$	645.3		7.0		%	5.7	%
	Staffing fee-based income included in revenue from services			14.0			14.9		(6.0	)		(4.3	)
	Gross profit			101.0			98.8		2.2			1.2
	Gross profit rate			14.6	%		15.3	%	(0.7	)	pts.
PT
	Revenue from services		$	145.5		$	131.7		10.3		%	7.7	%
	Staffing fee-based income included in revenue from services			10.7			11.7		(8.3	)		(7.6	)
	Gross profit			33.3			32.0		3.8			2.3
	Gross profit rate			22.8	%		24.3	%	(1.5	)	pts.
Total EMEA
	Revenue from services		$	835.7		$	777.0		7.5		%	6.0	%
	Staffing fee-based income included in revenue from services			24.7			26.6		(7.0	)		(5.7	)
	Gross profit			134.3			130.8		2.6			1.5
	SG&A expenses excluding restructuring charges			124.2			122.1		1.7
	Restructuring charges			0.8			0.1		327.7
	Total SG&A expenses			125.0			122.2		2.2			0.8
	Earnings from operations			9.3			8.6		8.1
	Earnings from operations excluding restructuring charges			10.1			8.7		15.1

	Gross profit rate			16.1	%		16.8	%	(0.7	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		14.9			15.7		(0.8	)
		% of gross profit		92.5			93.3		(0.8	)
	Return on sales (excluding restructuring charges)			1.2			1.1		0.1


KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

			September Year to Date
												Constant
												Currency
			2014			2013			Change			Change
APAC
Commercial
	Revenue from services		$	260.5		$	256.8		1.4		%	4.2	%
	Staffing fee-based income included in revenue from services			5.9			7.0		(17.1	)		(14.0	)
	Gross profit			35.7			36.8		(3.1	)		(0.3	)
	Gross profit rate			13.7	%		14.3	%	(0.6	)	pts.
PT
	Revenue from services		$	29.2		$	29.3		(0.5	)	%	3.3	%
	Staffing fee-based income included in revenue from services			5.8			6.7		(13.0	)		(9.7	)
	Gross profit			9.4			10.5		(10.2	)		(6.8	)
	Gross profit rate			32.2	%		35.7	%	(3.5	)	pts.
Total APAC
	Revenue from services		$	289.7		$	286.1		1.3		%	4.1	%
	Staffing fee-based income included in revenue from services			11.7			13.7		(15.1	)		(11.9	)
	Gross profit			45.1			47.3		(4.6	)		(1.7	)
	SG&A expenses excluding restructuring charges			43.3			45.5		(4.7	)
	Restructuring charges			1.3			0.3		373.4
	Total SG&A expenses			44.6			45.8		(2.3	)		1.1
	Earnings from operations			0.5			1.5		(76.8	)
	Earnings from operations excluding restructuring charges			1.8			1.8		(4.2	)

	Gross profit rate			15.6	%		16.5	%	(0.9	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		15.0			15.9		(0.9	)
		% of gross profit		96.2			96.2		--
	Return on sales (excluding restructuring charges)			0.6			0.6		--

OCG
	Revenue from services		$	422.1		$	361.0		16.9		%	17.3	%
	Gross profit			101.3			91.7		10.5			10.6
	SG&A expenses excluding restructuring charges			94.7			81.6		16.0
	Restructuring charges			--			0.9		(100.0	)
	Total SG&A expenses			94.7			82.5		14.9			15.0
	Asset impairments			--			1.7		(100.0	)
	Earnings from operations			6.6			7.5		(13.1	)
	Earnings from operations excluding restructuring charges			6.6			8.4		(21.4	)

	Gross profit rate			24.0	%		25.4	%	(1.4	)	pts.
	Expense rates (excluding restructuring charges):
		% of revenue		22.4			22.6		(0.2	)
		% of gross profit		93.4			88.9		4.5
	Return on sales (excluding restructuring charges)			1.6			2.4		(0.8	)


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)

		Sept. 28, 2014				Dec. 29, 2013				Sept. 29, 2013
Current Assets
	Cash and equivalents	$	51.6			$	125.7			$	73.9
	Trade accounts receivable, less allowances of
	$9.2, $9.9 and $10.0, respectively		1,158.1				1,023.1				1,071.8
	Prepaid expenses and other current assets		56.8				52.2				62.0
	Deferred taxes		28.9				35.5				40.3
Total current assets			1,295.4				1,236.5				1,248.0

Property and Equipment, Net			91.1				92.0				87.7

Noncurrent Deferred Taxes			132.7				121.7				104.5

Goodwill, Net			90.3				90.3				90.3

Other Assets			291.5				258.1				241.0

Total Assets		$	1,901.0			$	1,798.6			$	1,771.5

Current Liabilities
	Short-term borrowings	$	88.7			$	28.3			$	58.0
	Accounts payable and accrued liabilities		339.0				342.4				308.9
	Accrued payroll and related taxes		318.6				294.9				300.9
	Accrued insurance		24.4				27.6				30.7
	Income and other taxes		74.0				68.8				71.5

Total current liabilities			844.7				762.0				770.0

Noncurrent Liabilities
	Accrued insurance		43.4				46.0				40.7
	Accrued retirement benefits		146.6				134.7				129.3
	Other long-term liabilities		40.7				33.3				28.0

Total noncurrent liabilities			230.7				214.0				198.0

Stockholders' Equity
	Common stock		40.1				40.1				40.1
	Treasury stock		(52.5	)			(56.2	)			(57.5	)
	Paid-in capital		26.7				26.0				26.1
	Earnings invested in the business		752.3				751.3				736.0
	Accumulated other comprehensive income		59.0				61.4				58.8

Total stockholders' equity			825.6				822.6				803.5

Total Liabilities and Stockholders' Equity		$	1,901.0			$	1,798.6			$	1,771.5


STATISTICS:
	Working Capital	$	450.7			$	474.5			$	478.0
	Current Ratio		1.5				1.6				1.6
	Debt-to-capital %		9.7		%		3.3		%		6.7		%
	Global Days Sales Outstanding		58				52				56


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(UNAUDITED)
(In millions of dollars)

				2014			2013
Cash flows from operating activities:
Net earnings			$	6.7		$	41.7
Noncash adjustments:
	Impairment of assets			--			1.7
	Depreciation and amortization			16.2			15.4
	Provision for bad debts			3.6			1.1
	Stock-based compensation			4.1			2.7
	Other, net			1.3			0.7
Changes in operating assets and liabilities				(140.9	)		(41.4	)

	Net cash (used in) from operating activities			(109.0	)		21.9

Cash flows from investing activities:
	Capital expenditures			(15.0	)		(11.7	)
	Investment in equity affiliate			(5.4	)		--
	Other investing activities			0.2			--

		Net cash used in investing activities		(20.2	)		(11.7	)

Cash flows from financing activities:
	Net change in short-term borrowings			60.4			(6.1	)
	Dividend payments			(5.7	)		(5.7	)
	Other financing activities			0.4			0.3

		Net cash from (used in) financing activities		55.1			(11.5	)

Effect of exchange rates on cash and equivalents				--			(1.1	)

Net change in cash and equivalents				(74.1	)		(2.4	)
Cash and equivalents at beginning of period				125.7			76.3


Cash and equivalents at end of period			$	51.6		$	73.9


KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

			Third Quarter (Commercial, PT and OCG)
						% Change
		2014		2013		US$			Constant Currency

Americas
	United States	$	873.7	$	843.5	3.6		%	3.6		%
	Canada		51.9		52.9	(1.9	)		2.6
	Mexico		37.0		33.1	11.8			13.6
	Puerto Rico		25.7		24.4	5.1			5.1
	Brazil		13.6		13.1	3.7			3.2
Total Americas			1,001.9		967.0	3.6			3.9

EMEA
	France		70.1		62.4	12.4			12.0
	Switzerland		66.7		68.6	(2.7	)		(4.7	)
	Portugal		33.3		24.1	38.0			37.8
	Russia		28.7		32.9	(13.0	)		(3.9	)
	United Kingdom		26.2		26.5	(1.1	)		(8.4	)
	Germany		17.5		17.4	0.6			0.6
	Norway		14.8		16.1	(7.7	)		(3.8	)
	Italy		14.8		13.8	6.7			6.7
	Other		15.8		16.0	(1.0	)		(0.3	)
Total EMEA			287.9		277.8	3.6			3.7

APAC
	Singapore		33.4		29.4	13.7			12.2
	Australia		32.3		32.4	(0.2	)		(1.3	)
	Malaysia		16.7		17.2	(3.0	)		(4.5	)
	New Zealand		12.7		12.6	0.4			(5.1	)
	Other		11.5		9.2	25.1			26.2
Total APAC			106.6		100.8	5.8			4.1

Total Kelly Services, Inc.		$	1,396.4	$	1,345.6	3.8		%	3.9		%


KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

		September Year to Date (Commercial, PT and OCG)
						% Change
		2014		2013		US$			Constant Currency

Americas
	United States	$	2,601.9	$	2,547.3	2.1		%	2.1		%
	Canada		148.2		163.9	(9.6	)		(3.5	)
	Mexico		102.3		99.4	2.9			6.4
	Puerto Rico		78.4		73.6	6.4			6.4
	Brazil		43.2		45.0	(4.1	)		5.2
Total Americas			2,974.0		2,929.2	1.5			2.1

EMEA
	France		202.2		182.0	11.1			7.9
	Switzerland		195.7		185.6	5.5			1.4
	Russia		96.4		102.0	(5.5	)		5.9
	Portugal		92.4		63.0	46.6			42.5
	United Kingdom		82.4		78.1	5.5			(2.4	)
	Germany		50.7		49.3	3.0			0.1
	Italy		46.3		43.6	6.0			2.9
	Norway		43.6		46.3	(5.7	)		(1.0	)
	Other		50.9		50.7	0.4			(1.8	)
Total EMEA			860.6		800.6	7.5			6.0

APAC
	Singapore		94.8		83.5	13.5			14.0
	Australia		88.8		100.4	(11.6	)		(5.9	)
	Malaysia		50.0		51.1	(2.1	)		1.5
	New Zealand		38.2		36.1	5.9			2.1
	Other		31.3		26.4	18.4			27.7
Total APAC			303.1		297.5	1.9			4.9

Total Kelly Services, Inc.		$	4,137.7	$	4,027.3	2.7		%	3.1		%


KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(UNAUDITED)
(In millions of dollars except per share data)

			2014							2013
			As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Adjusted Earnings	% Change

Revenue from services		$	1,396.4	$	--		$	1,396.4	$	1,345.6	3.8		%

Cost of services			1,171.0		--			1,171.0		1,125.2	4.1

Gross profit			225.4		--			225.4		220.4	2.2

SG&A expenses			218.3		(4.0	)		214.3		199.7	7.3

Earnings from operations			7.1		4.0			11.1		20.7	(46.8	)

Other expense, net			2.2		--			2.2		1.3	(63.1	)

Earnings before taxes			4.9		4.0			8.9		19.4	(54.6	)

Inc. tax expense (benefit)			3.5		1.5			5.0		0.1	NM

Net earnings		$	1.4	$	2.5		$	3.9	$	19.3	(80.5	)	%

Earnings per share:
	Basic	$	0.03	$	0.06		$	0.10	$	0.51	(80.4	)	%
	Diluted	$	0.03	$	0.06		$	0.10	$	0.51	(80.4	)	%


			2013
			As reported		Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services		$	1,345.6	$	--		$	1,345.6

Cost of services			1,125.2		--			1,125.2

Gross profit			220.4		--			220.4

SG&A expenses			200.2		(0.5	)		199.7

Earnings from operations			20.2		0.5			20.7

Other expense, net			1.3		--			1.3

Earnings before taxes			18.9		0.5			19.4

Inc. tax expense (benefit)			0.1		--			0.1

Net earnings		$	18.8	$	0.5		$	19.3

Earnings per share:
	Basic	$	0.49	$	0.01		$	0.51
	Diluted	$	0.49	$	0.01		$	0.51

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.


KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 39 WEEKS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(UNAUDITED)
(In millions of dollars except per share data)

			2014									2013
			As reported			Restructuring Charges (Note 1)			Adjusted Earnings			Adjusted Earnings		% Change

Revenue from services		$	4,137.7		$	--		$	4,137.7		$	4,027.3		2.7		%

Cost of services			3,461.9			--			3,461.9			3,369.3		2.8

Gross profit			675.8			--			675.8			658.0		2.7

SG&A expenses			656.5			(5.8	)		650.7			611.3		6.5

Earnings from operations			19.3			5.8			25.1			46.7		(46.7	)

Other expense, net			4.2			--			4.2			3.9		(4.6	)

Earnings before taxes			15.1			5.8			20.9			42.8		(51.4	)

Inc. tax expense (benefit)			8.4			2.1			10.5			(1.8	)	NM

Net earnings		$	6.7		$	3.7		$	10.4		$	44.6		(77.0	)	%

Earnings per share:
	Basic	$	0.17		$	0.10		$	0.27		$	1.17		(76.9	)	%
	Diluted	$	0.17		$	0.10		$	0.27		$	1.17		(76.9	)	%


			2013
			As reported			Restructuring Charges (Note 1)			Asset Impairments (Note 2)			Adjusted Earnings

Revenue from services		$	4,027.3		$	--		$	--		$	4,027.3

Cost of services			3,369.3			--			--			3,369.3

Gross profit			658.0			--			--			658.0

SG&A expenses			612.6			(1.3	)		--			611.3

Asset impairments			1.7			--			(1.7	)		--

Earnings from operations			43.7			1.3			1.7			46.7

Other expense, net			3.9			--			--			3.9

Earnings before taxes			39.8			1.3			1.7			42.8

Inc. tax expense (benefit)			(1.9	)		0.1			--			(1.8	)

Net earnings		$	41.7		$	1.2		$	1.7		$	44.6

Earnings per share:
	Basic	$	1.09		$	0.03		$	0.04		$	1.17
	Diluted	$	1.09		$	0.03		$	0.04		$	1.17

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

KELLY SERIVCES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges and asset impairment charges is useful to understand the Company's fiscal 2014 financial performance and increases comparability. Specifically, Management believes that excluding these items allows for a more meaningful comparison of current period operating performance with the operating results of prior periods. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.


(1)	Restructuring charges in 2014 includes costs related to the U.S. management simplification restructuring plan, costs incurred for exiting the staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand. Restructuring charges in 2013 relate to the Company's decision to exit the executive search business operating in Germany, and primarily relate to severance costs from exiting this business.

(2)	Asset impairment charges represent the write-off of the carrying value of long-lived assets related to the decision to exit the executive search business operating in Germany.

ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com

MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com

Source: Kelly Services

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Press Release Details

Kelly Services® Reports 3rd Quarter Results