KELLY SERVICES INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - KELLY SERVICES INC	kelly_8k-110712.htm

Exhibit 99.1

KELLY SERVICES® REPORTS 3rd QUARTER 2012 RESULTS

TROY, MI (November 7, 2012) -- Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the third quarter of 2012.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2012 totaled $1.4 billion, a 4% decrease compared to the corresponding quarter of 2011.

Earnings from operations for the third quarter of 2012 totaled $24.0 million, compared to $22.1 million reported for the third quarter of 2011.

Diluted earnings per share from continuing operations in the third quarter of 2012 were $0.43 compared to $0.52 per share in the third quarter of 2011.

Commenting on the third quarter results, Camden stated, “Amidst challenging global economic conditions and a sluggish U.S. labor market, Kelly delivered solid third quarter results. We are very pleased that we were able to improve gross profit, keep expenses in line, and create leverage to improve our operating earnings by nearly 9 percent year-over-year, despite a deceleration in revenue.”

Kelly also reported that on November 6, its board of directors declared a dividend of $0.05 per share. The dividend is payable December 7, 2012 to shareholders of record as of the close of business on November 19, 2012.

In conjunction with its third quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on November 7, 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, 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 the Patient Protection and Affordable Care Act 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 kellyservices.com and connect with us on Facebook, LinkedIn, and Twitter. Download The Talent Project, a free iPad app by Kelly Services.

# # #

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

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 13 WEEKS ENDED SEPTEMBER 30, 2012 AND OCTOBER 2, 2011

(UNAUDITED)

(In millions of dollars except per share data)

	2012			2011			Change				% Change

Revenue from services	$	1,354.2		$	1,409.8		$	(55.6	)			(3.9	)%

Cost of services		1,126.7			1,184.1			(57.4	)			(4.8	)

Gross profit		227.5			225.7			1.8				0.7

Selling, general and administrative expenses		203.5			203.6			(0.1	)			(0.1	)

Earnings from operations		24.0			22.1			1.9				8.5

Other (expense) income, net		(0.7	)		1.0			(1.7	)			(177.3	)

Earnings from continuing operations before taxes		23.3			23.1			0.2				1.0

Income taxes		6.7			3.4			3.3				100.6

Earnings from continuing operations		16.6			19.7			(3.1	)			(16.0	)

Earnings from discontinued operations, net of tax		-			-			-			NM

Net earnings	$	16.6		$	19.7		$	(3.1	)			(15.9	)%

Basic earnings per share on common stock
Earnings from continuing operations	$	0.43		$	0.52		$	(0.09	)			(17.3	)%
Earnings from discontinued operations		-			-			-			NM
Net earnings		0.43			0.52			(0.09	)			(17.3	)

Diluted earnings per share on common stock
Earnings from continuing operations	$	0.43		$	0.52		$	(0.09	)			(17.3	)%
Earnings from discontinued operations		-			-			-			NM
Net earnings		0.43			0.52			(0.09	)			(17.3	)


STATISTICS:

Gross profit rate		16.8	%		16.0	%		0.8		pts.

Selling, general and administrative expenses:
% of revenue		15.0			14.4			0.6
% of gross profit		89.4			90.2			(0.8	)

% Return:
Earnings from operations		1.8			1.6			0.2
Earnings from continuing operations before taxes		1.7			1.6			0.1
Earnings from continuing operations		1.2			1.4			(0.2	)
Net earnings		1.2			1.4			(0.2	)

Effective income tax rate		28.9	%		14.6	%		14.3		pts.

Average number of shares outstanding (millions):
Basic		37.1			36.8
Diluted		37.1			36.8

Shares adjusted for nonvested restricted awards (millions):
Basic		38.3			37.8
Diluted		38.3			37.8

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 39 WEEKS ENDED SEPTEMBER 30, 2012 AND OCTOBER 2, 2011

(UNAUDITED)

(In millions of dollars except per share data)

	2012			2011			Change				% Change

Revenue from services	$	4,075.1		$	4,154.7		$	(79.6	)			(1.9	)%

Cost of services		3,400.7			3,495.7			(95.0	)			(2.7	)

Gross profit		674.4			659.0			15.4				2.3

Selling, general and administrative expenses		611.9			614.0			(2.1	)			(0.4	)

Earnings from operations		62.5			45.0			17.5				38.8

Other expense, net		(1.8	)		(0.1	)		(1.7	)		NM

Earnings from continuing operations before taxes		60.7			44.9			15.8				35.2

Income taxes		19.9			4.1			15.8				385.0

Earnings from continuing operations		40.8			40.8			-				-

Earnings (loss) from discontinued operations, net of tax		0.4			(1.2	)		1.6			NM

Net earnings	$	41.2		$	39.6		$	1.6				4.1	%

Basic earnings (loss) per share on common stock
Earnings from continuing operations	$	1.07		$	1.09		$	(0.02	)			(1.8	)%
Earnings (loss) from discontinued operations		0.01			(0.03	)		0.04			NM
Net earnings		1.09			1.05			0.04				3.8

Diluted earnings (loss) per share on common stock
Earnings from continuing operations	$	1.07		$	1.09		$	(0.02	)			(1.8	)%
Earnings (loss) from discontinued operations		0.01			(0.03	)		0.04			NM
Net earnings		1.09			1.05			0.04				3.8


STATISTICS:

Gross profit rate		16.5	%		15.9	%		0.6		pts.

Selling, general and administrative expenses:
% of revenue		15.0			14.8			0.2
% of gross profit		90.7			93.2			(2.5	)

% Return:
Earnings from operations		1.5			1.1			0.4
Earnings from continuing operations before taxes		1.5			1.1			0.4
Earnings from continuing operations		1.0			1.0			0.0
Net earnings		1.0			1.0			0.0

Effective income tax rate		32.8	%		9.1	%		23.7		pts.

Average number of shares outstanding (millions):
Basic		37.0			36.8
Diluted		37.0			36.8

Shares adjusted for nonvested restricted awards (millions):
Basic		38.0			37.6
Diluted		38.0			37.6

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

	Third Quarter
	2012			2011			Change				Constant Currency Change
Americas Commercial
Revenue from services (including fee-based income)	$	642.2		$	661.7			(2.9	)%			(2.0	)%
Fee-based income		4.4			3.2			36.9				40.8
Gross profit		96.4			93.6			3.0				4.0

Gross profit rate		15.0	%		14.2	%		0.8		pts.

Americas PT
Revenue from services (including fee-based income)	$	261.6		$	250.8			4.3	%			4.4	%
Fee-based income		3.7			3.2			13.6				13.7
Gross profit		40.9			37.9			7.9				8.0

Gross profit rate		15.6	%		15.1	%		0.5		pts.

Total Americas
Revenue from services (including fee-based income)	$	903.8		$	912.5			(1.0	)%			(0.3	)%
Fee-based income		8.1			6.4			25.2				27.1
Gross profit		137.3			131.5			4.4				5.1
Total SG&A expenses		101.5			97.7			4.0				4.9
Earnings from operations		35.8			33.8			5.8

Gross profit rate		15.2	%		14.4	%		0.8		pts.
Expense rates:
% of revenue		11.2			10.7			0.5
% of gross profit		73.9			74.2			(0.3	)
Operating margin		4.0			3.7			0.3

EMEA Commercial
Revenue from services (including fee-based income)	$	214.5		$	261.0			(17.8	)%			(8.0	)%
Fee-based income		5.2			6.5			(20.3	)			(11.7	)
Gross profit		33.4			42.1			(20.8	)			(11.2	)

Gross profit rate		15.6	%		16.1	%		(0.5	)	pts.

EMEA PT
Revenue from services (including fee-based income)	$	41.5		$	46.8			(11.3	)%			(0.8	)%
Fee-based income		4.1			5.3			(23.5	)			(15.3	)
Gross profit		10.5			12.7			(17.0	)			(7.5	)

Gross profit rate		25.4	%		27.1	%		(1.7	)	pts.

Total EMEA
Revenue from services (including fee-based income)	$	256.0		$	307.8			(16.8	)%			(6.9	)%
Fee-based income		9.3			11.8			(21.8	)			(13.3	)
Gross profit		43.9			54.8			(19.9	)			(10.3	)
SG&A expenses excluding restructuring charges		40.0			47.3			(15.6	)
Restructuring charges		-			(0.6	)		(100.0	)
Total SG&A expenses		40.0			46.7			(14.5	)			(4.6	)
Earnings from operations		3.9			8.1			(51.3	)
Earnings from operations excluding restructuring charges		3.9			7.5			(47.5	)

Gross profit rate		17.1	%		17.8	%		(0.7	)	pts.
Expense rates (excluding restructuring charges):
% of revenue		15.6			15.4			0.2
% of gross profit		91.1			86.4			4.7
Operating margin (excluding restructuring charges)		1.5			2.4			(0.9	)

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

	Third Quarter
	2012			2011			Change				Constant Currency Change
APAC Commercial
Revenue from services (including fee-based income)	$	85.7		$	101.8			(15.8	)%			(13.2	)%
Fee-based income		2.9			3.8			(24.8	)			(20.4	)
Gross profit		12.8			14.7			(13.1	)			(10.2	)

Gross profit rate		14.9	%		14.4	%		0.5		pts.

APAC PT
Revenue from services (including fee-based income)	$	14.3		$	14.1			1.3	%			3.5	%
Fee-based income		4.8			4.2			13.7				15.5
Gross profit		6.2			5.6			9.1				11.1

Gross profit rate		43.0	%		39.9	%		3.1		pts.

Total APAC
Revenue from services (including fee-based income)	$	100.0		$	115.9			(13.7	)%			(11.1	)%
Fee-based income		7.7			8.0			(4.5	)			(1.5	)
Gross profit		19.0			20.3			(6.9	)			(4.2	)
Total SG&A expenses		18.8			19.8			(4.9	)			(2.2	)
Earnings from operations		0.2			0.5			(78.0	)

Gross profit rate		18.9	%		17.6	%		1.3		pts.
Expense rates:
% of revenue		18.8			17.1			1.7
% of gross profit		99.3			97.2			2.1
Operating margin		0.1			0.5			(0.4	)

OCG
Revenue from services (including fee-based income)	$	104.7		$	80.7			29.7	%			30.9	%
Fee-based income		13.2			10.5			25.3				29.1
Gross profit		28.2			19.8			42.8				45.4
Total SG&A expenses		24.2			20.0			20.5				23.6
Earnings from operations		4.0			(0.2	)	NM

Gross profit rate		27.0	%		24.5	%		2.5		pts.
Expense rates:
% of revenue		23.1			24.9			(1.8	)
% of gross profit		85.5			101.3			(15.8	)
Operating margin		3.9			(0.3	)		4.2

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

	September Year to Date
	2012			2011			Change				Constant Currency Change
Americas Commercial
Revenue from services (including fee-based income)	$	1,980.1		$	1,985.3			(0.3	)%			0.7	%
Fee-based income		12.1			8.8			36.9				40.4
Gross profit		292.1			278.9			4.7				5.6

Gross profit rate		14.8	%		14.1	%		0.7		pts.

Americas PT
Revenue from services (including fee-based income)	$	774.1		$	739.1			4.7	%			4.9	%
Fee-based income		11.3			9.7			16.3				16.5
Gross profit		120.8			109.8			9.9				10.1

Gross profit rate		15.6	%		14.9	%		0.7		pts.

Total Americas
Revenue from services (including fee-based income)	$	2,754.2		$	2,724.4			1.1	%			1.8	%
Fee-based income		23.4			18.5			26.1				27.8
Gross profit		412.9			388.7			6.2				6.9
Total SG&A expenses		303.4			296.3			2.4				3.2
Earnings from operations		109.5			92.4			18.3

Gross profit rate		15.0	%		14.3	%		0.7		pts.
Expense rates:
% of revenue		11.0			10.9			0.1
% of gross profit		73.5			76.2			(2.7	)
Operating margin		4.0			3.4			0.6

EMEA Commercial
Revenue from services (including fee-based income)	$	641.2		$	751.3			(14.7	)%			(7.7	)%
Fee-based income		17.5			18.9			(7.5	)			(0.1	)
Gross profit		101.1			121.6			(16.9	)			(9.9	)

Gross profit rate		15.8	%		16.2	%		(0.4	)	pts.

EMEA PT
Revenue from services (including fee-based income)	$	125.3		$	134.0			(6.4	)%			1.2	%
Fee-based income		13.1			15.0			(12.8	)			(6.2	)
Gross profit		32.7			36.1			(9.3	)			(2.0	)

Gross profit rate		26.1	%		26.9	%		(0.8	)	pts.

Total EMEA
Revenue from services (including fee-based income)	$	766.5		$	885.3			(13.4	)%			(6.3	)%
Fee-based income		30.6			33.9			(9.8	)			(2.8	)
Gross profit		133.8			157.7			(15.2	)			(8.1	)
SG&A expenses excluding restructuring charges		126.4			140.5			(10.2	)
Restructuring charges		(2.2	)		2.8			(177.7	)
Total SG&A expenses		124.2			143.3			(13.4	)			(6.6	)
Earnings from operations		9.6			14.4			(32.7	)
Earnings from operations excluding restructuring charges		7.4			17.2			(56.4	)

Gross profit rate		17.5	%		17.8	%		(0.3	)	pts.
Expense rates (excluding restructuring charges):
% of revenue		16.5			15.9			0.6
% of gross profit		94.4			89.2			5.2
Operating margin (excluding restructuring charges)		1.0			1.9			(0.9	)

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

	September Year to Date
	2012			2011			Change				Constant Currency Change
APAC Commercial
Revenue from services (including fee-based income)	$	258.3		$	303.8			(15.0	)%			(13.4	)%
Fee-based income		9.3			11.0			(14.9	)			(11.9	)
Gross profit		38.4			42.5			(9.6	)			(8.0	)

Gross profit rate		14.9	%		14.0	%		0.9		pts.

APAC PT
Revenue from services (including fee-based income)	$	39.9		$	39.1			2.1	%			3.8	%
Fee-based income		12.9			12.2			5.2				5.6
Gross profit		16.7			16.2			2.8				3.6

Gross profit rate		41.8	%		41.5	%		0.3		pts.

Total APAC
Revenue from services (including fee-based income)	$	298.2		$	342.9			(13.0	)%			(11.5	)%
Fee-based income		22.2			23.2			(4.3	)			(2.6	)
Gross profit		55.1			58.7			(6.2	)			(4.8	)
Total SG&A expenses		57.5			59.1			(2.8	)			(1.3	)
Earnings from operations		(2.4	)		(0.4	)		(440.3	)

Gross profit rate		18.5	%		17.1	%		1.4		pts.
Expense rates:
% of revenue		19.3			17.2			2.1
% of gross profit		104.4			100.8			3.6
Operating margin		(0.8	)		(0.1	)		(0.7	)

OCG
Revenue from services (including fee-based income)	$	282.8		$	222.9			26.8	%			27.9	%
Fee-based income		37.6			28.7			31.1				33.9
Gross profit		75.0			55.8			34.3				36.4
Total SG&A expenses		69.6			59.2			17.3				19.5
Earnings from operations		5.4			(3.4	)	NM

Gross profit rate		26.5	%		25.1	%		1.4		pts.
Expense rates:
% of revenue		24.6			26.6			(2.0	)
% of gross profit		92.8			106.2			(13.4	)
Operating margin		1.9			(1.6	)		3.5

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In millions of dollars)

	September 30, 2012			January 1, 2012			October 2, 2011
Current Assets
Cash and equivalents	$	70.3		$	81.0		$	73.5
Trade accounts receivable, less allowances of $11.9, $13.4 and $13.7, respectively		1,018.8			944.9			939.9
Prepaid expenses and other current assets		62.9			50.6			53.7
Deferred taxes		38.1			38.2			27.0
Total current assets		1,190.1			1,114.7			1,094.1
Property and Equipment, Net		90.4			90.6			91.6
Noncurrent Deferred Taxes		88.8			94.1			89.6
Goodwill, Net		91.2			90.2			67.3
Other Assets		174.8			152.1			145.6
Total Assets	$	1,635.3		$	1,541.7		$	1,488.2
Current Liabilities
Short-term borrowings	$	83.6		$	96.3		$	79.0
Accounts payable and accrued liabilities		279.1			237.2			227.7
Accrued payroll and related taxes		269.9			271.4			283.0
Accrued insurance		28.8			31.5			31.4
Income and other taxes		62.7			61.3			60.0
Total current liabilities		724.1			697.7			681.1

Noncurrent Liabilities
Accrued insurance		48.9			53.5			53.7
Accrued retirement benefits		108.5			91.1			82.8
Other long-term liabilities		25.1			23.7			13.6
Total noncurrent liabilities		182.5			168.3			150.1

Stockholders' Equity
Common stock		40.1			40.1			40.1
Treasury stock		(63.1	)		(66.9	)		(68.6	)
Paid-in capital		27.7			28.8			29.3
Earnings invested in the business		693.0			657.5			635.3
Accumulated other comprehensive income		31.0			16.2			20.9
Total stockholders' equity		728.7			675.7			657.0
Total Liabilities and Stockholders' Equity	$	1,635.3		$	1,541.7		$	1,488.2


STATISTICS:
Working Capital	$	466.0		$	417.0		$	413.0
Current Ratio		1.6			1.6			1.6
Debt-to-capital %		10.3	%		12.5	%		10.7	%
Global Days Sales Outstanding		54			52			52

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 39 WEEKS ENDED SEPTEMBER 30, 2012 AND OCTOBER 2, 2011

(UNAUDITED)

(In millions of dollars)

	2012			2011

Cash flows from operating activities
Net earnings	$	41.2		$	39.6
Noncash adjustments:
Depreciation and amortization		16.8			23.9
Provision for bad debts		1.2			3.5
Stock-based compensation		3.7			3.5
Other, net		-			(1.5	)
Changes in operating assets and liabilities		(42.0	)		(63.4	)

Net cash from operating activities		20.9			5.6

Cash flows from investing activities
Capital expenditures		(13.9	)		(10.0	)
Other investing activities		0.1			1.0

Net cash from investing activities		(13.8	)		(9.0	)

Cash flows from financing activities
Net change in short-term borrowings		(12.6	)		61.9
Repayment of debt		-			(62.9	)
Dividend payments		(5.7	)		(1.9	)
Other financing activities		0.1			(1.0	)

Net cash from financing activities		(18.2	)		(3.9	)

Effect of exchange rates on cash and equivalents		0.4			0.3

Net change in cash and equivalents		(10.7	)		(7.0	)
Cash and equivalents at beginning of period		81.0			80.5


Cash and equivalents at end of period	$	70.3		$	73.5

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

	Third Quarter (Commercial, PT and OCG)
					% Change
	2012		2011		US$			Constant Currency

Americas
United States	$	853.4	$	858.6		(0.6	)%		(0.6	)%
Canada		61.9		66.0		(6.1	)		(4.6	)
Mexico		31.1		27.1		14.6			21.8
Puerto Rico		24.5		24.5		(0.0	)		(0.0	)
Brazil		14.3		-	NM			NM
Total Americas		985.2		976.2		0.9			1.6

EMEA
Switzerland		61.0		68.3		(10.5	)		4.6
France		60.3		76.6		(21.4	)		(11.2	)
Russia		31.7		36.4		(12.9	)		(4.9	)
United Kingdom		25.6		30.9		(17.5	)		(15.9	)
Portugal		18.8		22.8		(17.4	)		(6.8	)
Germany		17.8		21.4		(16.9	)		(6.2	)
Norway		17.6		18.3		(4.4	)		2.8
Italy		13.1		18.2		(27.2	)		(18.2	)
Other		17.2		21.7		(20.6	)		(11.1	)
Total EMEA		263.1		314.6		(16.4	)		(6.4	)

APAC
Australia		35.4		36.8		(4.0	)		(3.0	)
Singapore		26.0		26.2		(0.5	)		1.1
Malaysia		19.1		18.1		5.6			8.9
New Zealand		13.0		13.4		(3.5	)		(0.7	)
India		5.5		18.0		(69.1	)		(62.8	)
Other		6.9		6.5		6.0			9.8
Total APAC		105.9		119.0		(11.0	)		(8.4	)

Total Kelly Services, Inc.	$	1,354.2	$	1,409.8		(3.9	)%		(1.0	)%

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

	September Year to Date (Commercial, PT and OCG)
					% Change
	2012		2011		US$			Constant Currency

Americas
United States	$	2,586.3	$	2,561.6		1.0	%		1.0	%
Canada		183.4		186.8		(1.8	)		0.7
Mexico		82.4		79.8		3.2			13.0
Puerto Rico		76.3		70.7		8.0			8.0
Brazil		46.7		-	NM			NM
Total Americas		2,975.1		2,898.9		2.6			3.3

EMEA
France		184.2		224.7		(18.0	)		(10.0	)
Switzerland		174.4		177.8		(1.9	)		6.0
Russia		97.1		108.4		(10.5	)		(3.5	)
United Kingdom		79.3		92.5		(14.3	)		(12.4	)
Portugal		56.0		66.1		(15.2	)		(6.8	)
Germany		53.9		62.7		(14.0	)		(5.6	)
Norway		50.8		50.9		(0.3	)		5.6
Italy		44.5		53.3		(16.4	)		(8.5	)
Other		48.4		67.4		(28.1	)		(20.7	)
Total EMEA		788.6		903.8		(12.7	)		(5.6	)

APAC
Australia		101.6		110.3		(7.9	)		(7.7	)
Singapore		75.1		78.6		(4.4	)		(3.5	)
Malaysia		54.9		54.5		0.7			3.0
New Zealand		39.5		37.8		4.4			3.3
India		20.9		53.1		(60.6	)		(54.2	)
Other		19.4		17.7		9.8			12.2
Total APAC		311.4		352.0		(11.5	)		(9.9	)

Total Kelly Services, Inc.	$	4,075.1	$	4,154.7		(1.9	) %		0.3	%

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars except per share data)

	Third Quarter					Sept. Year to Date
	2012		2011			2012			2011

Pretax earnings from operations	$	24.0	$	22.1		$	62.5		$	45.0

Restructuring charges (Note 1)		-		(0.6	)		(2.2	)		2.8

Earnings from operations excluding restructuring charges	$	24.0	$	21.5		$	60.3		$	47.8

	Third Quarter
	2012				2011
	Amount		Per Share		Amount			Per Share

Earnings from continuing operations, net of taxes	$	16.6	$	0.43	$	19.7		$	0.52

Restructuring charges, net of taxes (Note 1)		-		-		(0.6	)		(0.02	)

Earnings from continuing operations excluding restructuring charges, net of taxes	$	16.6	$	0.43	$	19.1		$	0.51

	Sept. Year to Date
	2012						2011
	Amount			Per Share			Amount		Per Share

Earnings from continuing operations, net of taxes	$	40.8		$	1.07		$	40.8	$	1.09

Restructuring charges, net of taxes (Note 1)		(2.2	)		(0.06	)		2.8		0.07

Earnings from continuing operations excluding restructuring charges, net of taxes	$	38.6		$	1.02		$	43.6	$	1.16

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 2012 financial performance and increases comparability. Specifically, Management believes that excluding this item 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 costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.

KELLY SERVICES INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - November 7, 2012

Attached files

KELLY SERVICES INC Reports