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Kelly Services Inc. Reports Operating Results (10-Q)

November 10, 2010 | About:
10qk

10qk

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Kelly Services Inc. (KELYA) filed Quarterly Report for the period ended 2010-10-03.

Kelly Services Inc. has a market cap of $603.9 million; its shares were traded at around $16.46 with and P/S ratio of 0.1. KELYA is in the portfolios of David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Charles Brandes of Brandes Investment, Charles Brandes of Brandes Investment.

Highlight of Business Operations:

Revenue from services in the third quarter of 2010 totaled $1.3 billion, an increase of 22.4% from the same period in 2009. This was the result of an increase in hours worked of 26.9%, partially offset by a decrease in average hourly bill rates of 3.1% on a constant currency basis. Fee-based income, which is included in revenue from services, totaled $24.9 million, or 1.9% of total revenue, for the third quarter of 2010, an increase of 20.6% (19.9% on a constant currency basis) as compared to $20.5 million in the third quarter of 2009. On a constant currency basis, revenue for the quarter increased in all business segments.

Gross profit of $207.2 million was 24.7% higher than gross profit of $166.2 million for the same period of the prior year. The gross profit rate for the third quarter of 2010 was 16.1%, versus 15.8% for the third quarter of 2009, primarily due to increased gross profit rates in the Americas and EMEA Commercial business segments. Gross profit rates in Americas Commercial and Americas PT increased due to the favorable impact from recent U.S. legislation described below. In EMEA Commercial, the gross profit rate increased as a result of business mix.

Selling, general and administrative (SG&A) expenses totaled $192.9 million, and decreased year over year by $0.8 million, or 0.4% (0.1% on a constant currency basis), due to a decrease in restructuring costs, partially offset by an increase in incentive compensation. Included in SG&A expenses are pretax charges for restructuring costs of $2.8 million in the third quarter of 2010 and $4.6 million in the third quarter of 2009.

As a result of the above, we reported earnings from operations in the third quarter of 2010 totaling $14.3 million, compared to a loss of $28.0 million reported for the third quarter of 2009.

Earnings from continuing operations were $9.6 million in the third quarter of 2010, compared to a loss of $14.8 million in the third quarter of 2009. Included in earnings from continuing operations are restructuring charges, net of tax, of $1.8 million in the third quarter of 2010 and $3.5 million in the third quarter of 2009.

Diluted earnings from continuing operations per share for the third quarter of 2010 were $0.26, as compared to a diluted loss of $0.43 for the third quarter of 2009.

Read the The complete Report

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10qk
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