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Kelly Services reports Q1 results

"We're pleased with our first quarter performance, which is better than expectations and confirms our strategic direction," stated Camden. "It's clear we are making progress on adjusting our operating models and focusing on higher-margin growth -- and we're delivering a profit while investing aggressively in Kelly's long-term success."

Camden noted that although confidence is returning among many U.S. companies, that isn't necessarily translating into strong job growth. "Rather than waiting for the job market to change significantly in 2014, Kelly is taking the necessary steps to secure our position in the specialty staffing and outsourcing and consulting markets. In particular, we continue to see strong demand and revenue growth in the talent supply chain management approach delivered through our OCG segment."

Kelly also reported that on May 6, 2014, its board of directors declared a dividend of $0.05 per share. The dividend is payable June 3, 2014 to shareholders of record as of the close of business on May 19, 2014.

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

 

 

 

 

 

First Quarter

 

 

 

 

 

Constant

 

 

 

 

 

Currency

2014

 

2013

 

Change

 

Change

AMERICAS

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Revenue from services

$

613.2

 

$

638.3

 

(3.9

)%

(2.7

)%

 

Staffing fee-based income (included in revenue from services)

3.7

 

3.9

 

(4.4

)

(2.4

)

 

Gross profit

91.8

 

93.5

 

(1.8

)

(0.7

)

 

 

 

 

 

 

 

 

Gross profit rate

15.0

%

 

14.7

%

0.3

pts.

 

 

 

 

 

 

 

 

PT

 

 

 

 

 

 

 

Revenue from services

$

236.4

 

$

242.6

 

(2.6

)%

(2.4

)%

 

Staffing fee-based income (included in revenue from services)

4.1

 

3.9

 

5.7

 

6.3

 

Gross profit

39.8

 

38.3

 

4.0

 

4.2

 

 

 

 

 

 

 

 

Gross profit rate

16.8

%

 

15.8

%

1.0

pts.

 

 

 

 

 

 

 

 

Total Americas

 

 

 

 

 

 

 

Revenue from services

$

849.6

 

$

880.9

 

(3.6

)%

(2.6

)%

 

Staffing fee-based income (included in revenue from services)

7.8

 

7.8

 

0.6

 

1.9

 

Gross profit

131.6

 

131.8

 

(0.2

)

0.7

 

Total SG&A expenses

109.5

 

107.9

 

1.5

 

2.4

 

Earnings from operations

22.1

 

23.9

 

(7.6

)

 

 

 

 

 

 

 

 

 

Gross profit rate

15.5

%

 

15.0

%

0.5

pts.

 

 

Expense rates:

 

 

 

 

 

 

 

% of revenue

12.9

 

12.3

 

0.6

 

 

 

% of gross profit

83.3

 

81.9

 

1.4

 

 

 

Return on sales

2.6

 

2.7

 

(0.1

)

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Revenue from services

$

221.9

 

$

201.0

 

10.4

%

9.6

%

 

Staffing fee-based income (included in revenue from services)

5.1

 

5.5

 

(7.8

)

(5.0

)

 

Gross profit

32.9

 

31.1

 

5.9

 

5.2

 

 

 

 

 

 

 

 

Gross profit rate

14.8

%

 

15.5

%

(0.7

) pts.

 

 

 

 

 

 

 

 

PT

 

 

 

 

 

 

 

Revenue from services

$

47.7

 

$

43.5

 

9.6

%

6.9

%

 

Staffing fee-based income (included in revenue from services)

3.6

 

4.0

 

(8.8

)

(7.9

)

 

Gross profit

11.1

 

10.7

 

3.8

 

2.3

 

 

 

 

 

 

 

 

Gross profit rate

23.3

%

 

24.6

%

(1.3

) pts.

 

 

 

 

 

 

 

 

Total EMEA

 

 

 

 

 

 

 

Revenue from services

$

269.6

 

$

244.5

 

10.3

%

9.1

%

 

Staffing fee-based income (included in revenue from services)

8.7

 

9.5

 

(8.2

)

(6.2

)

 

Gross profit

44.0

 

41.8

 

5.4

 

4.4

 

SG&A expenses excluding restructuring charges

41.9

 

42.2

 

(0.6

)

 

 

Restructuring charges

-

 

(0.2

)

(100.0

)

 

 

Total SG&A expenses

41.9

 

42.0

 

(0.2

)

(1.4

)

 

Earnings from operations

2.1

 

(0.2

)

NM

 

 

 

Earnings from operations excluding restructuring charges

2.1

 

(0.4

)

NM

 

 

 

 

 

 

 

 

 

 

Gross profit rate

16.3

%

 

17.1

%

(0.8

) pts.

 

 

Expense rates (excluding restructuring charges):

 

 

 

 

 

 

 

% of revenue

15.5

 

17.2

 

(1.7

)

 

 

% of gross profit

95.1

 

100.8

 

(5.7

)

 

 

Return on sales (excluding restructuring charges)

0.8

 

(0.1

)

0.9

 

 

 

 

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

 

 

 

 

 

 

First Quarter

 

 

 

 

 

Constant

 

 

 

 

 

Currency

2014

 

2013

 

Change

 

Change

APAC

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Revenue from services

$

83.0

 

$

81.5

 

1.8

%

9.3

%

 

Staffing fee-based income (included in revenue from services)

2.2

 

2.7

 

(20.4

)

(12.9

)

 

Gross profit

12.3

 

11.6

 

6.5

 

14.3

 

 

 

 

 

 

 

 

Gross profit rate

14.8

%

 

14.2

%

0.6

pts.

 

 

 

 

 

 

 

 

PT

 

 

 

 

 

 

 

Revenue from services

$

8.6

 

$

10.2

 

(15.3

)%

(7.2

)%

 

Staffing fee-based income (included in revenue from services)

1.7

 

2.0

 

(14.0

)

(6.0

)

 

Gross profit

2.8

 

3.3

 

(16.5

)

(8.6

)

 

 

 

 

 

 

 

 

Gross profit rate

32.0

%

 

32.5

%

(0.5

) pts.

 

 

 

 

 

 

 

 

Total APAC

 

 

 

 

 

 

 

Revenue from services

$

91.6

 

$

91.7

 

(0.1

)%

7.5

%

 

Staffing fee-based income (included in revenue from services)

3.9

 

4.7

 

(17.8

)

(10.0

)

 

Gross profit

15.1

 

14.9

 

1.4

 

9.2

 

SG&A expenses excluding restructuring charges

14.3

 

15.6

 

(7.8

)

 

 

Restructuring charges

-

 

0.2

 

(100.0

)

 

 

Total SG&A expenses

14.3

 

15.8

 

(9.0

)

(1.1

)

 

Earnings from operations

0.8

 

(0.9

)

NM

 

 

 

Earnings from operations excluding restructuring charges

0.8

 

(0.7

)

NM

 

 

 

 

 

 

 

 

 

 

Gross profit rate

16.5

%

 

16.2

%

0.3

pts.

 

 

Expense rates (excluding restructuring charges):

 

 

 

 

 

 

 

% of revenue

15.7

 

17.0

 

(1.3

)

 

 

% of gross profit

95.1

 

104.7

 

(9.6

)

 

 

Return on sales (excluding restructuring charges)

0.8

 

(0.8

)

1.6

 

 

 

 

 

 

 

 

 

OCG

 

 

 

 

 

 

 

Revenue from services

$

134.4

 

$

107.4

 

25.1

%

25.9

%

 

Gross profit

32.6

 

29.2

 

11.8

 

12.3

 

Total SG&A expenses

31.4

 

26.7

 

17.9

 

18.4

 

Earnings from operations

1.2

 

2.5

 

(52.6

)

 

 

 

 

 

 

 

 

 

Gross profit rate

24.3

%

 

27.2

%

(2.9

) pts.

 

 

Expense rates:

 

 

 

 

 

 

 

% of revenue

23.4

 

24.8

 

(1.4

)

 

 

% of gross profit

96.3

 

91.4

 

4.9

 

 

 

Return on sales

0.9

 

2.3

 

(1.4

)

 

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