Kelly Services® Reports 2nd Quarter 2015 Results

August 5, 2015

TROY, MI -- (Marketwired) -- 08/05/15 -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter of 2015.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2015 totaled $1.4 billion, a 2% decrease (a 4% increase on a constant currency basis) compared to the corresponding quarter of 2014.

Earnings from operations for the second quarter of 2015 totaled $11.5 million, compared to $5.9 million reported for the second quarter of 2014. Included in the results of operations in the second quarter of 2014 are restructuring charges of $1.8 million. Excluding the restructuring charges, earnings from operations were $7.7 million in the second quarter of 2014.

Diluted earnings per share in the second quarter of 2015 were $0.18 compared to $0.07 per share in the second quarter of 2014. Adjusted earnings per share were $0.10 in the second quarter of 2014.

Commenting on the second quarter, Camden stated, "I'm pleased to report that Kelly once again delivered strong operating leverage and improved returns. On a constant currency basis, we grew second quarter revenue and held our expenses relatively flat, dropping more than half of our gross profit growth to the bottom line. Last year's investments in PT and OCG are yielding results, and we are executing a strategy that clearly aligns with market trends and customer needs."

Kelly also reported that on August 4, its board of directors declared a dividend of $0.05 per share. The dividend is payable September 8 to shareholders of record as of the close of business on August 18.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 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, the risk of damage to our brand, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, 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 full-time employees to lead complex talent supply chain sales and operations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, 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 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 to continue to access credit markets, 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®

As a global leader in providing workforce solutions, Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Kelly® has a role in managing employment opportunities for more than one million workers around the globe by employing 550,000 of these individuals directly with the remaining workers engaged through its talent supply chain network of supplier partners. Revenue in 2014 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KLYA-FIN


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
												%		CC %
		2015			2014			Change				Change		Change

Revenue from services		$	1,385.0		$	1,410.5		$	(25.5	)		(1.8)	%	3.9	%

Cost of services			1,162.7			1,182.4			(19.7	)		(1.7	)

Gross profit			222.3			228.1			(5.8	)		(2.5	)	2.9

Selling, general and administrative expenses			210.8			222.2			(11.4	)		(5.2	)	(0.4	)

Earnings from operations			11.5			5.9			5.6			99.9

Other expense, net			1.0			0.3			0.7			276.3

Earnings before taxes			10.5			5.6			4.9			91.4

Income tax expense			3.7			2.8			0.9			34.7

Net earnings		$	6.8		$	2.8		$	4.0			148.6	%

Basic earnings per share		$	0.18		$	0.07		$	0.11			157.1	%
Diluted earnings per share		$	0.18		$	0.07		$	0.11			157.1	%


STATISTICS:

Gross profit rate			16.1	%		16.2	%		(0.1	)	pts.

Selling, general and administrative expenses:
	% of revenue		15.2			15.8			(0.6	)
	% of gross profit		94.8			97.5			(2.7	)

% Return:
Earnings from operations			0.8			0.4			0.4
Earnings before taxes			0.8			0.4			0.4
Net earnings			0.5			0.2			0.3

Effective income tax rate			35.3	%		50.2	%		(14.9	)	pts.

Average number of shares outstanding (millions):
	Basic		37.7			37.4
	Diluted		37.8			37.4

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.8			38.5
	Diluted		38.8			38.6


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)
												%		CC %
		2015			2014			Change				Change		Change

Revenue from services		$	2,705.6		$	2,741.3		$	(35.7	)		(1.3	)%	4.1	%

Cost of services			2,263.0			2,290.9			(27.9	)		(1.2	)

Gross profit			442.6			450.4			(7.8	)		(1.7	)	3.3

Selling, general and administrative expenses			419.0			438.2			(19.2	)		(4.4	)	0.3

Earnings from operations			23.6			12.2			11.4			96.9

Other expense, net			3.5			2.0			1.5			82.2

Earnings before taxes			20.1			10.2			9.9			99.6

Income tax expense			9.6			4.9			4.7			98.4

Net earnings		$	10.5		$	5.3		$	5.2			100.8	%

Basic earnings per share		$	0.27		$	0.14		$	0.13			92.9	%
Diluted earnings per share		$	0.27		$	0.14		$	0.13			92.9	%


STATISTICS:

Gross profit rate			16.4	%		16.4	%		--		pts.

Selling, general and administrative expenses:
	% of revenue		15.5			16.0			(0.5	)
	% of gross profit		94.7			97.3			(2.6	)

% Return:
Earnings from operations			0.9			0.4			0.5
Earnings before taxes			0.7			0.4			0.3
Net earnings			0.4			0.2			0.2

Effective income tax rate			47.6	%		47.9	%		(0.3	)	pts.

Average number of shares outstanding (millions):
	Basic		37.7			37.4
	Diluted		37.8			37.4

Shares adjusted for nonvested restricted awards (millions):
	Basic		38.8			38.5
	Diluted		38.8			38.6


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

				Second Quarter
													Constant
													Currency
				2015			2014			Change			Change
AMERICAS
	Commercial
		Revenue from services		$	651.3		$	661.1		(1.5	)%		0.5	%
		Staffing fee-based income included in revenue from services			3.5			3.4		4.6			7.3
		Gross profit			95.9			96.5		(0.7	)		1.1
		Gross profit rate			14.7	%		14.6	%	0.1		pts.
	PT
		Revenue from services		$	246.2		$	244.2		0.8	%		1.2	%
		Staffing fee-based income included in revenue from services			4.9			3.7		29.1			30.2
		Gross profit			42.1			39.0		8.0			8.4
		Gross profit rate			17.1	%		16.0	%	1.1		pts.
	Total Americas
		Revenue from services		$	897.5		$	905.3		(0.9	)%		0.7	%
		Staffing fee-based income included in revenue from services			8.4			7.1		17.4			19.3
		Gross profit			138.0			135.5		1.8			3.2
		Total SG&A expenses			112.6			112.6		(0.1	)		1.2
		Earnings from operations			25.4			22.9		11.4

		Gross profit rate			15.4	%		15.0	%	0.4		pts.
		Expense rates:
			% of revenue		12.5			12.4		0.1
			% of gross profit		81.6			83.1		(1.5	)
		Return on sales			2.8			2.5		0.3

EMEA
	Commercial
		Revenue from services		$	195.7		$	237.0		(17.4	)%		--	%
		Staffing fee-based income included in revenue from services			3.2			5.0		(35.9	)		(20.2	)
		Gross profit			26.8			34.5		(22.5	)		(5.9	)
		Gross profit rate			13.7	%		14.6	%	(0.9	)	pts.
	PT
		Revenue from services		$	42.9		$	49.7		(13.6	)%		4.5	%
		Staffing fee-based income included in revenue from services			2.5			3.6		(30.2	)		(13.3	)
		Gross profit			9.1			11.3		(19.0	)		(1.2	)
		Gross profit rate			21.2	%		22.6	%	(1.4	)	pts.
	Total EMEA
		Revenue from services		$	238.6		$	286.7		(16.8	)%		0.8	%
		Staffing fee-based income included in revenue from services			5.7			8.6		(33.5	)		(17.3	)
		Gross profit			35.9			45.8		(21.6	)		(4.7	)
		SG&A expenses excluding restructuring charges			34.2			42.3		(19.1	)
		Restructuring charges			--			0.8		(100.0	)
		Total SG&A expenses			34.2			43.1		(20.6	)		(5.0	)
		Earnings from operations			1.7			2.7		(38.1	)
		Earnings from operations excluding restructuring charges			1.7			3.5		(52.4	)

		Gross profit rate			15.0	%		16.0	%	(1.0	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		14.3			14.7		(0.4	)
			% of gross profit		95.3			92.3		3.0
		Return on sales (excluding restructuring charges)			0.7			1.2		(0.5	)


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

				Second Quarter
													Constant
													Currency
				2015			2014			Change			Change
APAC
	Commercial
		Revenue from services		$	90.3		$	86.5		4.3	%		17.7	%
		Staffing fee-based income included in revenue from services			1.8			2.0		(10.9	)		(0.1	)
		Gross profit			11.2			11.7		(3.8	)		8.3
		Gross profit rate			12.4	%		13.5	%	(1.1	)	pts.
	PT
		Revenue from services		$	10.3		$	10.0		3.5	%		17.8	%
		Staffing fee-based income included in revenue from services			1.5			2.1		(29.0	)		(20.9	)
		Gross profit			2.7			3.3		(17.9	)		(7.6	)
		Gross profit rate			26.4	%		33.2	%	(6.8	)	pts.
	Total APAC
		Revenue from services		$	100.6		$	96.5		4.3	%		17.7	%
		Staffing fee-based income included in revenue from services			3.3			4.1		(20.3	)		(10.9	)
		Gross profit			13.9			15.0		(6.9	)		4.8
		SG&A expenses excluding restructuring charges			12.3			14.8		(17.0	)
		Restructuring charges			--			1.0		(100.0	)
		Total SG&A expenses			12.3			15.8		(22.5	)		(12.9	)
		Earnings from operations			1.6			(0.8	)	NM
		Earnings from operations excluding restructuring charges			1.6			0.2		NM

		Gross profit rate			13.9	%		15.5	%	(1.6	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		12.2			15.4		(3.2	)
			% of gross profit		88.3			99.0		(10.7	)
		Return on sales (excluding restructuring charges)			1.6			0.2		1.4

OCG
		Revenue from services		$	165.0		$	137.9		19.7	%		21.6	%
		Gross profit			35.7			32.9		8.4			11.4
		Total SG&A expenses			32.2			31.1		3.6			6.4
		Earnings from operations			3.5			1.8		88.8

		Gross profit rate			21.6	%		23.9	%	(2.3	)	pts.
		Expense rates:
			% of revenue		19.5			22.5		(3.0	)
			% of gross profit		90.2			94.4		(4.2	)
		Return on sales			2.1			1.3		0.8


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

				June Year to Date
													Constant
													Currency
				2015			2014			Change			Change
AMERICAS
	Commercial
		Revenue from services		$	1,292.7		$	1,274.3		1.4	%		3.2	%
		Staffing fee-based income included in revenue from services			7.0			6.6		5.3			7.8
		Gross profit			193.7			188.3		2.9			4.4
		Gross profit rate			15.0	%		14.8	%	0.2		pts.
	PT
		Revenue from services		$	479.0		$	480.6		(0.3	)%		0.1	%
		Staffing fee-based income included in revenue from services			8.4			7.3		13.5			14.3
		Gross profit			81.0			78.8		2.9			3.3
		Gross profit rate			16.9	%		16.4	%	0.5		pts.
	Total Americas
		Revenue from services		$	1,771.7		$	1,754.9		1.0	%		2.4	%
		Staffing fee-based income included in revenue from services			15.4			13.9		9.6			11.2
		Gross profit			274.7			267.1		2.9			4.1
		Total SG&A expenses			226.1			222.1		1.8			3.0
		Earnings from operations			48.6			45.0		8.4

		Gross profit rate			15.5	%		15.2	%	0.3		pts.
		Expense rates:
			% of revenue		12.8			12.7		0.1
			% of gross profit		82.3			83.2		(0.9	)
		Return on sales			2.7			2.6		0.1

EMEA
	Commercial
		Revenue from services		$	374.0		$	458.9		(18.5	)%		(0.9	)%
		Staffing fee-based income included in revenue from services			6.7			9.8		(31.5	)		(13.8	)
		Gross profit			51.4			67.4		(23.8	)		(7.3	)
		Gross profit rate			13.7	%		14.7	%	(1.0	)	pts.
	PT
		Revenue from services		$	83.2		$	97.4		(14.5	)%		3.4	%
		Staffing fee-based income included in revenue from services			5.1			7.2		(29.5	)		(12.1	)
		Gross profit			17.8			22.4		(20.4	)		(2.8	)
		Gross profit rate			21.4	%		23.0	%	(1.6	)	pts.
	Total EMEA
		Revenue from services		$	457.2		$	556.3		(17.8	)%		(0.1	)%
		Staffing fee-based income included in revenue from services			11.8			17.0		(30.7	)		(13.1	)
		Gross profit			69.2			89.8		(23.0	)		(6.2	)
		SG&A expenses excluding restructuring charges			67.7			84.2		(19.6	)
		Restructuring charges			--			0.8		(100.0	)
		Total SG&A expenses			67.7			85.0		(20.3	)		(4.1	)
		Earnings from operations			1.5			4.8		(69.1	)
		Earnings from operations excluding restructuring charges			1.5			5.6		(73.5	)

		Gross profit rate			15.1	%		16.1	%	(1.0	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		14.8			15.1		(0.3	)
			% of gross profit		97.8			93.7		4.1
		Return on sales (excluding restructuring charges)			0.3			1.0		(0.7	)


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

				June Year to Date
													Constant
													Currency
				2015			2014			Change			Change
APAC
	Commercial
		Revenue from services		$	175.9		$	169.5		3.8	%		15.1	%
		Staffing fee-based income included in revenue from services			3.3			3.9		(16.2	)		(7.7	)
		Gross profit			24.2			24.0		0.9			11.6
		Gross profit rate			13.8	%		14.2	%	(0.4	)	pts.
	PT
		Revenue from services		$	20.8		$	18.6		12.1	%		25.4	%
		Staffing fee-based income included in revenue from services			3.1			3.8		(18.1	)		(10.3	)
		Gross profit			5.6			6.1		(7.6	)		2.2
		Gross profit rate			26.9	%		32.7	%	(5.8	)	pts.
	Total APAC
		Revenue from services		$	196.7		$	188.1		4.6	%		16.2	%
		Staffing fee-based income included in revenue from services			6.4			7.7		(17.1	)		(9.0	)
		Gross profit			29.8			30.1		(0.8	)		9.7
		SG&A expenses excluding restructuring charges			24.4			29.1		(16.3	)
		Restructuring charges			--			1.0		(100.0	)
		Total SG&A expenses			24.4			30.1		(19.2	)		(10.7	)
		Earnings from operations			5.4			--		NM
		Earnings from operations excluding restructuring charges			5.4			1.0		NM

		Gross profit rate			15.2	%		16.0	%	(0.8	)	pts.
		Expense rates (excluding restructuring charges):
			% of revenue		12.4			15.5		(3.1	)
			% of gross profit		82.0			97.0		(15.0	)
		Return on sales (excluding restructuring charges)			2.7			0.5		2.2

OCG
		Revenue from services		$	314.5		$	272.3		15.5	%		17.1	%
		Gross profit			71.2			65.5		8.6			10.7
		Total SG&A expenses			64.9			62.5		3.8			6.4
		Earnings from operations			6.3			3.0		108.3

		Gross profit rate			22.6	%		24.1	%	(1.5	)	pts.
		Expense rates:
			% of revenue		20.6			22.9		(2.3	)
			% of gross profit		91.1			95.4		(4.3	)
		Return on sales			2.0			1.1		0.9


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

		June 28, 2015			Dec. 28, 2014			June 29, 2014
Current Assets
	Cash and equivalents	$	48.7		$	83.1		$	62.8
	Trade accounts receivable, less allowances of $9.4, $10.7 and $9.2, respectively		1,152.3			1,122.8			1,132.9
	Prepaid expenses and other current assets		50.6			47.9			57.6
	Deferred taxes		35.8			34.4			31.5
Total current assets			1,287.4			1,288.2			1,284.8

Property and Equipment, Net			88.6			93.0			91.4

Noncurrent Deferred Taxes			144.6			146.3			130.8

Goodwill, Net			90.3			90.3			90.3

Other Assets			321.7			300.1			295.7

Total Assets		$	1,932.6		$	1,917.9		$	1,893.0

Current Liabilities
	Short-term borrowings	$	89.9		$	91.9		$	89.5
	Accounts payable and accrued liabilities		380.4			364.0			328.4
	Accrued payroll and related taxes		296.5			308.5			300.5
	Accrued insurance		27.1			26.9			25.2
	Income and other taxes		62.8			68.8			74.9

Total current liabilities			856.7			860.1			818.5

Noncurrent Liabilities
	Accrued insurance		44.3			43.9			44.7
	Accrued retirement benefits		146.5			140.8			147.4
	Other long-term liabilities		40.6			39.4			41.9

Total noncurrent liabilities			231.4			224.1			234.0

Stockholders' Equity
	Common stock		40.1			40.1			40.1
	Treasury stock		(49.0	)		(49.8	)		(55.5	)
	Paid-in capital		27.5			24.9			29.0
	Earnings invested in the business		774.1			767.4			752.8
	Accumulated other comprehensive income		51.8			51.1			74.1

Total stockholders' equity			844.5			833.7			840.5

Total Liabilities and Stockholders' Equity		$	1,932.6		$	1,917.9		$	1,893.0


STATISTICS:
Working Capital		$	430.7		$	428.1		$	466.3
Current Ratio			1.5			1.5			1.6
Debt-to-capital %			9.6	%		9.9	%		9.6	%
Global Days Sales Outstanding			56			54			57


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars)

			2015			2014
Cash flows from operating activities:
	Net earnings		$	10.5		$	5.3
	Noncash adjustments:
		Depreciation and amortization		11.0			10.8
		Provision for bad debts		2.1			2.6
		Stock-based compensation		3.1			3.5
		Other, net		(0.3	)		0.7
	Changes in operating assets and liabilities			(52.9	)		(130.4	)

		Net cash used in operating activities		(26.5	)		(107.5	)

Cash flows from investing activities:
	Capital expenditures			(6.7	)		(8.9	)
	Investment in equity affiliate			(0.5	)		(5.4	)
	Other investing activities			(0.1	)		0.4

		Net cash used in investing activities		(7.3	)		(13.9	)

Cash flows from financing activities:
	Net change in short-term borrowings			(1.4	)		61.2
	Dividend payments			(3.8	)		(3.8	)

		Net cash (used in) from financing activities		(5.2	)		57.4

Effect of exchange rates on cash and equivalents				4.6			1.1

Net change in cash and equivalents				(34.4	)		(62.9	)
Cash and equivalents at beginning of period				83.1			125.7


Cash and equivalents at end of period			$	48.7		$	62.8


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

		Second Quarter (Commercial, PT and OCG)
						% Change
								Constant
		2015		2014		US$		Currency

Americas
	United States	$	923.6	$	888.3	4.0	%	4.0	%
	Canada		41.6		49.6	(16.0	)	(5.5	)
	Mexico		32.0		34.6	(7.9	)	8.5
	Puerto Rico		26.6		27.6	(3.7	)	(3.7	)
	Brazil		9.9		13.7	(27.8	)	(1.5	)
Total Americas			1,033.7		1,013.8	2.0		3.4

EMEA
	France		60.9		69.3	(12.1	)	9.0
	Switzerland		54.6		66.7	(18.3	)	(13.4	)
	Portugal		33.9		32.5	4.2		29.0
	United Kingdom		27.1		28.4	(4.3	)	5.2
	Russia		22.2		32.8	(32.3	)	1.7
	Germany		14.3		16.5	(13.3	)	7.5
	Italy		13.0		16.6	(21.8	)	(3.3	)
	Norway		10.0		14.4	(31.0	)	(10.8	)
	Other		10.3		18.0	(42.9	)	(29.3	)
Total EMEA			246.3		295.2	(16.6	)	0.9

APAC
	Singapore		33.0		31.1	6.3		14.0
	Australia		32.9		30.0	9.5		31.3
	Malaysia		15.9		16.8	(5.1	)	7.2
	New Zealand		10.3		13.2	(21.9	)	(8.3	)
	Other		12.9		10.4	24.3		33.1
Total APAC			105.0		101.5	3.6		17.1

Total Kelly Services, Inc.		$	1,385.0	$	1,410.5	(1.8	)%	3.9	%


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

		June Year to Date (Commercial, PT and OCG)
						% Change
								Constant
		2015		2014		US$		Currency

Americas
	United States	$	1,806.6	$	1,728.2	4.5	%	4.5	%
	Canada		84.3		96.3	(12.4	)	1.7
	Mexico		63.9		65.3	(2.3	)	12.8
	Puerto Rico		51.4		52.7	(2.3	)	(2.3	)
	Brazil		23.8		29.6	(19.6	)	(1.2	)
Total Americas			2,030.0		1,972.1	2.9		4.2

EMEA
	France		117.3		132.1	(11.3	)	8.8
	Switzerland		102.7		129.0	(20.4	)	(15.4	)
	Portugal		65.2		59.1	10.3		35.4
	United Kingdom		50.7		56.2	(9.7	)	(1.1	)
	Russia		40.4		67.7	(40.3	)	(2.5	)
	Germany		27.7		33.2	(16.5	)	2.2
	Italy		25.5		31.5	(18.9	)	(0.6	)
	Norway		19.4		28.8	(32.9	)	(13.9	)
	Other		21.3		35.1	(39.4	)	(25.7	)
Total EMEA			470.2		572.7	(17.9	)	(0.4	)

APAC
	Singapore		64.3		61.4	4.8		12.1
	Australia		63.3		56.5	12.0		31.2
	Malaysia		31.4		33.3	(5.9	)	4.8
	New Zealand		20.8		25.5	(18.4	)	(6.8	)
	Other		25.6		19.8	29.3		34.8
Total APAC			205.4		196.5	4.5		16.2

Total Kelly Services, Inc.		$	2,705.6	$	2,741.3	(1.3	)%	4.1	%


KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FOR THE 13 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)

		2015							2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Adjusted Earnings		% Change

Revenue from services		$	1,385.0	$	--		$	1,385.0	$	1,410.5	(1.8	)%

Cost of services			1,162.7		--			1,162.7		1,182.4	(1.7	)

Gross profit			222.3		--			222.3		228.1	(2.5	)

SG&A expenses			210.8		--			210.8		220.4	(4.4	)

Earnings from operations			11.5		--			11.5		7.7	50.7

Other expense, net			1.0		--			1.0		0.3	276.3

Earnings before taxes			10.5		--			10.5		7.4	42.8

Inc. tax expense (benefit)			3.7		--			3.7		3.4	9.1

Net earnings		$	6.8	$	--		$	6.8	$	4.0	71.7	%

Earnings per share:
	Basic	$	0.18	$	--		$	0.18	$	0.10	80.0	%
	Diluted	$	0.18	$	--		$	0.18	$	0.10	80.0	%


		2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services		$	1,410.5	$	--		$	1,410.5

Cost of services			1,182.4		--			1,182.4

Gross profit			228.1		--			228.1

SG&A expenses			222.2		(1.8	)		220.4

Earnings from operations			5.9		1.8			7.7

Other expense, net			0.3		--			0.3

Earnings before taxes			5.6		1.8			7.4

Inc. tax expense (benefit)			2.8		0.6			3.4

Net earnings		$	2.8	$	1.2		$	4.0

Earnings per share:
	Basic	$	0.07	$	0.03		$	0.10
	Diluted	$	0.07	$	0.03		$	0.10

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 26 WEEKS ENDED JUNE 28, 2015 AND JUNE 29, 2014
(UNAUDITED)
(In millions of dollars except per share data)

		2015							2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings		Adjusted Earnings		% Change

Revenue from services		$	2,705.6	$	--		$	2,705.6	$	2,741.3	(1.3	)%

Cost of services			2,263.0		--			2,263.0		2,290.9	(1.2	)

Gross profit			442.6		--			442.6		450.4	(1.7	)

SG&A expenses			419.0		--			419.0		436.4	(4.0	)

Earnings from operations			23.6		--			23.6		14.0	70.2

Other expense, net			3.5		--			3.5		2.0	82.2

Earnings before taxes			20.1		--			20.1		12.0	68.2

Inc. tax expense (benefit)			9.6		--			9.6		5.5	74.9

Net earnings		$	10.5	$	--		$	10.5	$	6.5	62.6	%

Earnings per share:
	Basic	$	0.27	$	--		$	0.27	$	0.17	58.8	%
	Diluted	$	0.27	$	--		$	0.27	$	0.17	58.8	%


		2014
		As reported		Restructuring Charges (Note 1)			Adjusted Earnings

Revenue from services		$	2,741.3	$	--		$	2,741.3

Cost of services			2,290.9		--			2,290.9

Gross profit			450.4		--			450.4

SG&A expenses			438.2		(1.8	)		436.4

Earnings from operations			12.2		1.8			14.0

Other expense, net			2.0		--			2.0

Earnings before taxes			10.2		1.8			12.0

Inc. tax expense (benefit)			4.9		0.6			5.5

Net earnings		$	5.3	$	1.2		$	6.5

Earnings per share:
	Basic	$	0.14	$	0.03		$	0.17
	Diluted	$	0.14	$	0.03		$	0.17

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 SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges is useful to understand the Company's fiscal 2015 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 relate to costs incurred for exiting the staffing business in Sweden and closing branches in Australia.

Source: Kelly Services

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Press Release Details

Kelly Services® Reports 2nd Quarter 2015 Results