Kelly Services® Reports 1st Quarter 2011 Results

May 11, 2011
TROY, MI (May 11, 2011) -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the first quarter. 
 
Carl T. Camden, President and Chief Executive Officer, announced revenue for the first quarter of 2011 totaled $1.3 billion, a 19% increase compared to the corresponding quarter in 2010. 
 
Earnings from operations for the first quarter of 2011 totaled $1.6 million, compared to losses from operations of $1.6 million reported for the first quarter of 2010. Included in the results from operations are restructuring charges of $4.0 million in the first quarter of 2011 and $4.4 million in the first quarter of 2010. Excluding restructuring charges, earnings from operations were $5.6 million in the first quarter of 2011 and $2.8 million in the first quarter of 2010.
   
Diluted earnings per share in the first quarter of 2011 were $0.03 compared to first quarter 2010 losses of $0.06 per share. Excluding restructuring charges, diluted earnings per share were $0.14 in the first quarter of 2011 and $0.05 in the first quarter of 2010.
 

Commenting on the first quarter results, Camden stated, “We continue to see evidence of a solid, sustainable economic recovery. Kelly’s revenue growth for the period certainly confirms that we are on track for a profitable year.”

Camden added, “Until full confidence is restored, and employers remain cautious about ramping up too aggressively, this environment seems to favor the staffing industry – and we intend to capitalize on the opportunities presented.

“Going forward, Kelly is committed to improving our competitive position and enhancing shareholder value by delivering customer-focused workforce solutions – spanning traditional staffing, professional and technical offerings, and outsourcing and consulting services, and maintaining talent excellence throughout our company.”

In conjunction with its first quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on May 11, 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:
 
 
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, changing market and economic conditions, our ability to achieve our business strategy, including our ability to successfully expand into new markets and service lines, material changes in demand from or loss of large corporate customers, further impairment charges initiated by adverse industry or market developments, unexpected termination of customer contracts, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits, unexpected changes in claim trends on workers’ compensation and benefit plans, 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, 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 retain the services of our senior management, local management and field personnel, the impact of changes in laws and regulations (including federal, state and international tax laws), the net financial impact of recent U.S. healthcare legislation on our business, risks associated with conducting business in foreign countries, including foreign currency fluctuations, 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, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting servicesas well asworld-classstaffing on a temporary, temporary-to-hire and direct-hire basis.  Serving clients around the globe, Kelly provides employment to more than 530,000 employees annually.  Revenue in 2010 was $5 billion.  Visit www.kellyservices.com and connect with us on Facebook®, LinkedIn®, and Twitter®.
 
 
 
# # #
 
 
ANALYST CONTACT:                                            
James Polehna                                                                   
(248) 244-4586
                             
MEDIA CONTACT:
Jane Stehney
(248) 244-5630