Exhibit 99.1

KELLY SERVICES^® REPORTS 4th QUARTER AND FULL YEAR 2011 RESULTS

TROY, MI (February 2, 2012) — Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the fourth quarter and full year 2011.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2011 totaled $1.4 billion, a 5% increase compared to the corresponding quarter in 2010. Revenue for the full year totaled $5.6 billion, a 12% increase compared to the prior year.

Net earnings for the fourth quarter of 2011 totaled $24.1 million, compared to $14.6 million reported for the fourth quarter of 2010.

Net earnings for the full year of 2011 totaled $63.7 million compared to $26.1 million in 2010.

Diluted earnings per share from continuing operations in the fourth quarter of 2011 were $0.64 compared to $0.39 per share in the fourth quarter 2010.

Diluted earnings per share from continuing operations for the full year of 2011 were $1.72 compared to $0.71 per share in 2010.

Commenting on the fourth quarter and full year results, Camden stated, “Despite unsettled global economic conditions, we’re pleased to report a successful quarter and year. Our performance was fueled by a sustained demand for flexible staffing, improvements in the overall job market, and our own drive to achieve operational excellence.”

Camden stressed that Kelly remains focused on building shareholder value and delivering a competitive profit. “We will concentrate on providing customized solutions and offering a continuum of services through our outsourcing and consulting business, as well as meeting demand for highly skilled professional and technical workers.”

Looking ahead to 2012, Camden believes Kelly is in a strong position. “We’ve created a flexible, efficient business model that should serve us well going forward,” he said, adding that the Company is adamant about maintaining its cost-containment plan. “That diligence, along with engaging the best talent in the business, will keep us on track for continued growth.”

In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on February 2, 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

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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, impairment charges triggered 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 and collective actions, liability for improper disclosure of sensitive or private employee information, 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 and the expiration of the U.S. work opportunity credit program), 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 services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion. Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

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ANALYST CONTACT:		MEDIA CONTACT:
James Polehna		Jane Stehney
(248) 244-4586		(248) 244-5630
james_polehna@kellyservices.com		jane_stehney@kellyservices.com

 

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KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 13 WEEKS ENDED JANUARY 1, 2012 AND JANUARY 2, 2011

(UNAUDITED)

(In millions of dollars except per share data)

 

			September 30,				September 30,				September 30,				September 30,
		2011				2010				Change				% Change
Revenue from services		$	1,396.3			$	1,325.8			$	70.5				5.3	%
Cost of services			1,169.1				1,109.4				59.7				5.4
Gross profit			227.2				216.4				10.8				5.0
Selling, general and administrative expenses			214.5				199.0				15.5				7.8
Asset impairments			—				0.5				(0.5	)			(100.0	)
Earnings from operations			12.7				16.9				(4.2	)			(24.9	)
Other income (expense), net			—				(0.7	)			0.7				105.7
Earnings from continuing operations before taxes			12.7				16.2				(3.5	)			(21.0	)
Income taxes			(11.4	)			1.6				(13.0	)			NM
Earnings from continuing operations			24.1				14.6				9.5				65.2
Earnings from discontinued operations, net of tax			—				—				—				NM
Net earnings		$	24.1			$	14.6			$	9.5				65.2	%
Basic earnings per share on common stock
Earnings from continuing operations		$	0.64			$	0.39			$	0.25				64.1	%
Earnings from discontinued operations			—				—				—				NM
Net earnings			0.64				0.39				0.25				64.1
Diluted earnings per share on common stock
Earnings from continuing operations		$	0.64			$	0.39			$	0.25				64.1	%
Earnings from discontinued operations			—				—				—				NM
Net earnings			0.64				0.39				0.25				64.1
STATISTICS:
Gross profit rate			16.3	%			16.3	%			0.0	pts.
Selling, general and administrative expenses:
% of revenue			15.4				15.0				0.4
% of gross profit			94.4				92.0				2.4
% Return:
Earnings from operations			0.9				1.3				(0.4	)
Earnings from continuing operations before taxes			0.9				1.2				(0.3	)
Earnings from continuing operations			1.7				1.1				0.6
Net earnings			1.7				1.1				0.6
Effective income tax rate			(89.2	)%			9.5	%			(98.7	)pts.
Average number of shares outstanding (millions):
Basic			36.8				36.7
Diluted			36.8				36.7
Shares adjusted for nonvested restricted awards (millions):
Basic			37.8				37.2
Diluted			37.8				37.2

 

3

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KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 52 WEEKS ENDED JANUARY 1, 2012 AND JANUARY 2, 2011

(UNAUDITED)

(In millions of dollars except per share data)

 

			September 30,				September 30,				September 30,				September 30,
		2011				2010				Change				% Change
Revenue from services		$	5,551.0			$	4,950.3			$	600.7				12.1	%
Cost of services			4,656.9				4,155.8				501.1				12.1
Gross profit			894.1				794.5				99.6				12.5
Selling, general and administrative expenses			836.4				754.4				82.0				10.9
Asset impairments			—				2.0				(2.0	)			(100.0	)
Earnings from operations			57.7				38.1				19.6				51.4
Other expense, net			(0.1	)			(5.4	)			5.3				98.5
Earnings from continuing operations before taxes			57.6				32.7				24.9				76.3
Income taxes			(7.3	)			6.6				(13.9	)			(210.3	)
Earnings from continuing operations			64.9				26.1				38.8				148.7
Loss from discontinued operations, net of tax			(1.2	)			—				(1.2	)			NM
Net earnings		$	63.7			$	26.1			$	37.6				144.2	%
Basic earnings per share on common stock
Earnings from continuing operations		$	1.72			$	0.71			$	1.01				142.3	%
Loss from discontinued operations			(0.03	)			—				(0.03	)			NM
Net earnings			1.69				0.71				0.98				138.0
Diluted earnings per share on common stock
Earnings from continuing operations		$	1.72			$	0.71			$	1.01				142.3	%
Loss from discontinued operations			(0.03	)			—				(0.03	)			NM
Net earnings			1.69				0.71				0.98				138.0
STATISTICS:
Gross profit rate			16.1	%			16.0	%			0.1	pts.
Selling, general and administrative expenses:
% of revenue			15.1				15.2				(0.1	)
% of gross profit			93.5				94.9				(1.4	)
% Return:
Earnings from operations			1.0				0.8				0.2
Earnings from continuing operations before taxes			1.0				0.7				0.3
Earnings from continuing operations			1.2				0.5				0.7
Net earnings			1.1				0.5				0.6
Effective income tax rate			(12.6	)%			20.2	%			(32.8	)pts.
Average number of shares outstanding (millions):
Basic			36.8				36.1
Diluted			36.8				36.1
Shares adjusted for nonvested restricted awards (millions):
Basic			37.6				36.5
Diluted			37.6				36.5

 

4

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		Fourth Quarter
		2011				2010				Change				Constant Currency Change
Americas Commercial
Revenue from services (including fee-based income)		$	675.6			$	646.3				4.5	%			5.0	%
Fee-based income			3.2				2.3				41.2				41.8
Gross profit			96.9				98.4				(1.5	)			(1.1	)
Total SG&A expenses			74.5				73.4				1.4				1.8
Earnings from operations			22.4				25.0				(10.2	)
Gross profit rate			14.3	%			15.2	%			(0.9	)pts.
Expense rates:
% of revenue			11.0				11.4				(0.4	)
% of gross profit			76.9				74.6				2.3
Operating margin			3.3				3.9				(0.6	)
Americas PT
Revenue from services (including fee-based income)		$	243.7			$	229.9				6.0	%			6.2	%
Fee-based income			3.6				2.3				57.3				57.4
Gross profit			38.1				36.8				3.7				3.8
Total SG&A expenses			26.2				24.5				6.9				7.0
Earnings from operations			11.9				12.3				(2.9	)
Gross profit rate			15.6	%			16.0	%			(0.4	)pts.
Expense rates:
% of revenue			10.8				10.7				0.1
% of gross profit			68.9				66.8				2.1
Operating margin			4.9				5.3				(0.4	)
EMEA Commercial
Revenue from services (including fee-based income)		$	238.8			$	229.2				4.2	%			3.2	%
Fee-based income			6.0				4.7				25.9				26.1
Gross profit			38.8				37.2				4.2				3.3
Total SG&A expenses			36.1				34.8				3.8				2.7
Earnings from operations			2.7				2.4				10.7
Gross profit rate			16.2	%			16.2	%			—	pts.
Expense rates:
% of revenue			15.1				15.2				(0.1	)
% of gross profit			93.0				93.5				(0.5	)
Operating margin			1.1				1.1				—

 

5

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		Fourth Quarter
		2011				2010				Change				Constant Currency Change
EMEA PT
Revenue from services (including fee-based income)		$	44.9			$	41.2				8.9	%			8.1	%
Fee-based income			4.2				3.8				11.0				11.1
Gross profit			11.3				10.4				8.7				8.3
Total SG&A expenses			10.4				9.3				12.9				11.9
Earnings from operations			0.9				1.1				(24.3	)
Gross profit rate			25.3	%			25.4	%			(0.1	)pts.
Expense rates:
% of revenue			23.3				22.5				0.8
% of gross profit			92.1				88.7				3.4
Operating margin			2.0				2.9				(0.9	)
APAC Commercial
Revenue from services (including fee-based income)		$	93.8			$	102.0				(8.0	)%			(7.7	)%
Fee-based income			2.9				2.9				0.9				1.8
Gross profit			13.2				12.9				2.6				2.5
Total SG&A expenses			12.5				13.1				(4.5	)			(4.8	)
Earnings from operations			0.7				(0.2	)			NM
Gross profit rate			14.1	%			12.6	%			1.5	pts.
Expense rates:
% of revenue			13.4				12.9				0.5
% of gross profit			94.7				101.8				(7.1	)
Operating margin			0.7				(0.2	)			0.9
APAC PT
Revenue from services (including fee-based income)		$	12.3			$	8.9				38.4	%			40.3	%
Fee-based income			3.1				2.9				7.2				5.4
Gross profit			4.4				3.8				13.9				12.9
Total SG&A expenses			5.4				5.0				8.2				7.4
Earnings from operations			(1.0	)			(1.2	)			11.2
Gross profit rate			35.5	%			43.2	%			(7.7	)pts.
Expense rates:
% of revenue			43.7				55.9				(12.2	)
% of gross profit			123.0				129.6				(6.6	)
Operating margin			(8.2	)			(12.8	)			4.6

 

6

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		Fourth Quarter
		2011				2010				Change				Constant Currency Change
OCG
Revenue from services (including fee-based income)		$	94.4			$	75.0				25.9	%			25.9	%
Fee-based income			10.8				7.3				47.7				47.2
Gross profit			25.2				17.6				43.3				43.3
Total SG&A expenses			24.4				20.7				17.5				17.1
Earnings from operations			0.8				(3.1	)			NM
Gross profit rate			26.7	%			23.4	%			3.3	pts.
Expense rates:
% of revenue			25.8				27.6				(1.8	)
% of gross profit			96.8				118.0				(21.2	)
Operating margin			0.9				(4.2	)			5.1
Corporate Expense
Total SG&A expenses		$	25.7			$	18.9				36.1	%
Asset impairments			—				0.5				(100.0	)
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income)		$	1,396.3			$	1,325.8				5.3	%			5.4	%
Fee-based income			33.8				26.0				29.2				29.1
Gross profit			227.2				216.4				5.0				5.0
Total SG&A expenses			214.5				199.0				7.8				7.6
Asset impairments			—				0.5				(100.0	)
Earnings from operations			12.7				16.9				(24.9	)
Gross profit rate			16.3	%			16.3	%			—	pts.
Expense rates:
% of revenue			15.4				15.0				0.4
% of gross profit			94.4				92.0				2.4
Operating margin			0.9				1.3				(0.4	)

 

7

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		December Year to Date
		2011				2010				Change				Constant Currency Change
Americas Commercial
Revenue from services (including fee-based income)		$	2,660.9			$	2,428.2				9.6	%			9.2	%
Fee-based income			12.0				8.8				38.1				37.0
Gross profit			377.0				354.9				6.2				5.8
SG&A expenses excluding restructuring charges			293.1				275.3				6.5
Restructuring charges			—				0.3				(100.0	)
Total SG&A expenses			293.1				275.6				6.3				6.0
Earnings from operations			83.9				79.3				5.9
Earnings from operations excluding restructuring charges			83.9				79.6				5.4
Gross profit rate			14.2	%			14.6	%			(0.4	)pts.
Expense rates (excluding restructuring charges):
% of revenue			11.0				11.3				(0.3	)
% of gross profit			77.7				77.5				0.2
Operating margin (excluding restructuring charges)			3.2				3.3				(0.1	)
Americas PT
Revenue from services (including fee-based income)		$	982.8			$	889.0				10.6	%			10.5	%
Fee-based income			13.3				9.0				48.3				48.1
Gross profit			148.2				140.0				5.9				5.8
Total SG&A expenses			105.4				93.7				12.4				12.3
Earnings from operations			42.8				46.3				(7.4	)
Gross profit rate			15.1	%			15.8	%			(0.7	)pts.
Expense rates:
% of revenue			10.7				10.5				0.2
% of gross profit			71.1				67.0				4.1
Operating margin			4.4				5.2				(0.8	)
EMEA Commercial
Revenue from services (including fee-based income)		$	990.1			$	872.0				13.6	%			5.6	%
Fee-based income			24.9				19.1				29.7				21.5
Gross profit			160.6				141.0				13.9				5.7
SG&A expenses excluding restructuring charges			144.0				130.5				10.3
Restructuring charges			2.8				2.7				4.0
Total SG&A expenses			146.8				133.2				10.2				2.4
Asset impairments			—				1.5				(100.0	)
Earnings from operations			13.8				6.3				119.1
Earnings from operations excluding restructuring charges			16.6				9.0				84.6
Gross profit rate			16.2	%			16.2	%			—	pts.
Expense rates (excluding restructuring charges):
% of revenue			14.5				15.0				(0.5	)
% of gross profit			89.7				92.6				(2.9	)
Operating margin (excluding restructuring charges)			1.7				1.0				0.7

 

8

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		December Year to Date
		2011				2010				Change				Constant Currency Change
EMEA PT
Revenue from services (including fee-based income)		$	178.9			$	147.6				21.2	%			13.4	%
Fee-based income			19.2				15.0				27.3				19.7
Gross profit			47.4				38.7				22.0				14.5
Total SG&A expenses			43.2				36.9				17.4				9.4
Earnings from operations			4.2				1.8				105.3
Gross profit rate			26.5	%			26.3	%			0.2	pts.
Expense rates:
% of revenue			24.2				25.0				(0.8	)
% of gross profit			91.3				94.8				(3.5	)
Operating margin			2.3				1.4				0.9
APAC Commercial
Revenue from services (including fee-based income)		$	397.6			$	355.3				11.9	%			4.1	%
Fee-based income			13.9				11.4				23.0				14.2
Gross profit			55.7				48.4				15.3				6.6
SG&A expenses excluding restructuring charges			53.8				45.1				19.3
Restructuring charges			—				0.5				(100.0	)
Total SG&A expenses			53.8				45.6				17.9				8.8
Earnings from operations			1.9				2.8				(29.1	)
Earnings from operations excluding restructuring charges			1.9				3.3				(41.0	)
Gross profit rate			14.0	%			13.6	%			0.4	pts.
Expense rates (excluding restructuring charges):
% of revenue			13.5				12.7				0.8
% of gross profit			96.6				93.3				3.3
Operating margin (excluding restructuring charges)			0.5				0.9				(0.4	)
APAC PT
Revenue from services (including fee-based income)		$	51.4			$	32.5				58.1	%			48.9	%
Fee-based income			15.3				10.5				47.7				37.9
Gross profit			20.6				13.9				48.4				38.4
Total SG&A expenses			23.2				17.0				37.0				27.7
Earnings from operations			(2.6	)			(3.1	)			14.1
Gross profit rate			40.1	%			42.7	%			(2.6	)pts.
Expense rates:
% of revenue			45.3				52.2				(6.9	)
% of gross profit			112.9				122.3				(9.4	)
Operating margin			(5.2	)			(9.5	)			4.3

 

9

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		December Year to Date
		2011				2010				Change				Constant Currency Change
OCG
Revenue from services (including fee-based income)		$	317.3			$	254.8				24.5	%			23.6	%
Fee-based income			39.5				25.6				54.3				49.8
Gross profit			87.3				60.0				45.7				43.3
SG&A expenses excluding restructuring charges			89.9				77.5				16.0
Restructuring charges			—				0.1				(100.0	)
Total SG&A expenses			89.9				77.6				15.9				13.1
Earnings from operations			(2.6	)			(17.6	)			85.0
Earnings from operations excluding restructuring charges			(2.6	)			(17.5	)			84.9
Gross profit rate			27.5	%			23.5	%			4.0	pts.
Expense rates (excluding restructuring charges):
% of revenue			28.3				30.4				(2.1	)
% of gross profit			103.1				129.5				(26.4	)
Operating margin (excluding restructuring charges)			(0.8	)			(6.9	)			6.1
Corporate Expense
SG&A expenses excluding restructuring charges		$	83.7			$	73.6				13.7	%
Restructuring charges			—				3.6				(100.0	)
Total SG&A expenses			83.7				77.2				8.4
Asset impairments			—				0.5				(100.0	)
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income)		$	5,551.0			$	4,950.3				12.1	%			9.6	%
Fee-based income			138.0				99.0				39.4				33.4
Gross profit			894.1				794.5				12.5				9.6
SG&A expenses excluding restructuring charges			833.6				747.2				11.6
Restructuring charges			2.8				7.2				(61.7	)
Total SG&A expenses			836.4				754.4				10.9				7.9
Asset impairments			—				2.0				(100.0	)
Earnings from operations			57.7				38.1				51.4
Earnings from operations excluding restructuring charges			60.5				45.3				33.3
Gross profit rate			16.1	%			16.0	%			0.1	pts.
Expense rates (excluding restructuring charges):
% of revenue			15.0				15.1				(0.1	)
% of gross profit			93.2				94.0				(0.8	)
Operating margin (excluding restructuring charges)			1.1				0.9				0.2

 

10

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KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,
		January 1, 2012				January 2, 2011
Current Assets
Cash and equivalents		$	81.0			$	80.5
Trade accounts receivable, less allowances of $13.4 and $12.3, respectively			944.9				810.9
Prepaid expenses and other current assets			50.6				44.8
Deferred taxes			38.2				22.4
Total current assets			1,114.7				958.6
Property and Equipment, Net			90.6				104.0
Noncurrent Deferred Taxes			94.1				84.0
Goodwill, Net			90.2				67.3
Other Assets			152.1				154.5
Total Assets		$	1,541.7			$	1,368.4
Current Liabilities
Short-term borrowings and current portion of long-term debt		$	96.3			$	78.8
Accounts payable and accrued liabilities			237.2				181.6
Accrued payroll and related taxes			271.4				243.3
Accrued insurance			31.5				31.3
Income and other taxes			61.3				56.0
Total current liabilities			697.7				591.0
Noncurrent Liabilities
Accrued insurance			53.5				53.6
Accrued retirement benefits			91.1				85.4
Other long-term liabilities			23.7				14.6
Total noncurrent liabilities			168.3				153.6
Stockholders’ Equity
Common stock			40.1				40.1
Treasury stock			(66.9	)			(70.9	)
Paid-in capital			28.8				28.0
Earnings invested in the business			657.5				597.6
Accumulated other comprehensive income			16.2				29.0
Total stockholders’ equity			675.7				623.8
Total Liabilities and Stockholders’ Equity		$	1,541.7			$	1,368.4
STATISTICS:
Working Capital		$	417.0			$	367.6
Current Ratio			1.6				1.6
Debt-to-capital %			12.5	%			11.2	%
Global Days Sales Outstanding			52				49

 

11

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KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 52 WEEKS ENDED JANUARY 1, 2012 AND JANUARY 2, 2011

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,
		2011				2010
Cash flows from operating activities
Net earnings		$	63.7			$	26.1
Noncash adjustments:
Impairment of assets			—				2.0
Depreciation and amortization			31.4				34.9
Provision for bad debts			4.3				2.1
Stock-based compensation			4.6				3.2
Other, net			(2.6	)			0.5
Changes in operating assets and liabilities			(82.3	)			(27.0	)
Net cash from operating activities			19.1				41.8
Cash flows from investing activities
Capital expenditures			(15.4	)			(11.0	)
Acquisition of companies, net of cash received			(6.5	)			—
Settlement of forward exchange contracts			1.1				—
Other investing activities			0.1				(0.3	)
Net cash from investing activities			(20.7	)			(11.3	)
Cash flows from financing activities
Net change in short-term borrowings			79.2				(44.8	)
Repayment of debt			(68.3	)			(14.9	)
Dividend payments			(3.8	)			—
Sale of stock and other financing activities			(1.0	)			24.4
Net cash from financing activities			6.1				(35.3	)
Effect of exchange rates on cash and equivalents			(4.0	)			(3.6	)
Net change in cash and equivalents			0.5				(8.4	)
Cash and equivalents at beginning of period			80.5				88.9
Cash and equivalents at end of period		$	81.0			$	80.5

 

12

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KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		Fourth Quarter (Commercial, PT and OCG)
										% Change
		2011				2010				US$				Constant Currency
Americas
United States		$	883.8			$	829.6				6.5	%			6.5	%
Canada			60.9				56.2				8.4				9.4
Mexico			26.2				27.6				(5.0	)			4.8
Puerto Rico			25.9				22.6				14.2				14.2
Total Americas			996.8				936.0				6.5				6.8
EMEA
France			71.2				72.2				(1.5	)			(0.8	)
Switzerland			62.0				50.7				22.4				14.5
Russia			33.4				28.1				18.9				20.7
United Kingdom			29.1				28.5				2.1				2.6
Portugal			21.6				21.8				(1.1	)			(0.4	)
Germany			20.1				19.2				5.0				5.7
Norway			17.8				14.3				24.4				20.8
Italy			17.7				17.2				3.3				4.0
Other			17.7				23.8				(25.9	)			(24.5	)
Total EMEA			290.6				275.8				5.4				4.4
APAC
Australia			35.1				40.6				(13.5	)			(15.7	)
Singapore			24.4				24.1				1.5				0.3
Malaysia			17.6				15.9				10.7				11.9
India			13.3				17.0				(21.5	)			(11.2	)
New Zealand			13.0				12.0				8.6				6.1
Other			5.5				4.4				23.9				23.4
Total APAC			108.9				114.0				(4.4	)			(4.0	)
Total Kelly Services, Inc.		$	1,396.3			$	1,325.8				5.3	%			5.4	%

 

13

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KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

 

			September 30,				September 30,				September 30,				September 30,
		December Year to Date (Commercial, PT and OCG)
										% Change
		2011				2010				US$				Constant Currency
Americas
United States		$	3,445.4			$	3,121.9				10.4	%			10.4	%
Canada			247.7				219.0				13.1				8.6
Mexico			106.0				93.7				13.2				11.6
Puerto Rico			96.6				78.2				23.4				23.4
Total Americas			3,895.7				3,512.8				10.9				10.6
EMEA
France			295.9				278.4				6.3				1.0
Switzerland			239.8				170.7				40.5				19.0
Russia			141.8				103.6				36.9				32.2
United Kingdom			121.6				134.1				(9.3	)			(12.6	)
Portugal			87.7				80.6				8.8				3.4
Germany			82.8				69.8				18.6				12.9
Italy			71.0				63.3				12.2				6.6
Norway			68.7				57.4				19.7				10.7
Other			85.1				80.7				5.4				(0.2	)
Total EMEA			1,194.4				1,038.6				15.0				7.1
APAC
Australia			145.4				128.8				12.9				0.7
Singapore			103.0				84.3				22.2				12.8
Malaysia			72.1				63.3				13.9				8.4
India			66.4				61.4				8.2				9.7
New Zealand			50.8				42.9				18.5				8.1
Other			23.2				18.2				26.9				22.7
Total APAC			460.9				398.9				15.6				7.7
Total Kelly Services, Inc.		$	5,551.0			$	4,950.3				12.1	%			9.6	%

 

14

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KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars except per share data)

 

			September 30,				September 30,				September 30,				September 30,
		Fourth Quarter								December Year to Date
		2011				2010				2011				2010
Pretax earnings from operations		$	12.7			$	16.9			$	57.7			$	38.1
Restructuring charges (Note 1)			—				—				2.8				7.2
Asset impairment charges (Note 2)			—				0.5				—				2.0
Earnings from operations excluding restructuring and asset impairment charges		$	12.7			$	17.4			$	60.5			$	47.3
		Fourth Quarter
		2011								2010
		Amount				Per Share				Amount				Per Share
Earnings from continuing operations, net of taxes		$	24.1			$	0.64			$	14.6			$	0.39
Asset impairment charges, net of taxes (Note 2)			—				—				0.3				0.01
Earnings from continuing operations excluding asset impairment charges, net of taxes		$	24.1			$	0.64			$	14.9			$	0.40
		December Year to Date
		2011								2010
		Amount				Per Share				Amount				Per Share
Earnings from continuing operations, net of taxes		$	64.9			$	1.72			$	26.1			$	0.71
Restructuring charges, net of taxes (Note 1)			2.8				0.07				5.4				0.15
Asset impairment charges, net of taxes (Note 2)			—				—				1.5				0.04
Earnings from continuing operations excluding restructuring and asset impairment charges, net of taxes		$	67.7			$	1.80			$	33.0			$	0.90

 

15

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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 and impairment charges is useful to understand the Company's fiscal 2011 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)

In 2010, restructuring costs related primarily to severance and lease termination costs for branches in the EMEA and APAC Commercial segments that were in the process of closure at the end of 2009, as well as severance costs related to the corporate headquarters. In 2011, restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.

 

(2)	Asset impairment charges relate to the write-off of incomplete software projects in Europe.

 

16

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KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT (PROFORMA)

2011 DECEMBER YEAR TO DATE

(UNAUDITED)

(In millions of dollars)

 

			xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx				xxxxxx
																																										Corp Exp
		Americas												EMEA												APAC																and				Consol
		Comm				PT				Total				Comm				PT				Total				Comm				PT				Total				OCG				Elims				Total
Revenue from services		$	2,660.9			$	982.8			$	3,643.7			$	990.1			$	178.9			$	1,169.0			$	397.6			$	51.4			$	449.0			$	317.3			$	(28.0	)		$	5,551.0
Cost of services			2,283.9				834.6				3,118.5				829.5				131.5				961.0				341.9				30.8				372.7				230.0				(25.3	)			4,656.9
Gross profit			377.0				148.2				525.2				160.6				47.4				208.0				55.7				20.6				76.3				87.3				(2.7	)			894.1
SG&A expenses											398.5												190.0												77.0				89.9				81.0				836.4
Earnings from operations										$	126.7											$	18.0											$	(0.7	)		$	(2.6	)		$	(83.7	)		$	57.7

 

Note:

Beginning in fiscal 2012, we are eliminating the expense allocation between Commercial and PT at the Americas, EMEA and APAC regions. The above presentation is a proforma of the segment structure with 2011 December year-to-date results.

 

17