Kelly Services, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 28, 2014; Provides Earnings Guidance for the First Quarter and Full Year of 2015
January 29, 2015 at 07:31 pm IST
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Kelly Services, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 28, 2014. Revenue for the fourth quarter of 2014 totaled $1.4 billion, a 3% increase (a 6% increase on a constant currency basis) compared to the corresponding quarter of 2013. Earnings from operations for the fourth quarter of 2014 totaled $2.6 million, compared to $9.6 million reported for the fourth quarter of 2013. Excluding the restructuring charges from both years, earnings from operations were $8.8 million in the fourth quarter of 2014, compared to adjusted earnings of $9.9 million last year. Diluted earnings per share in the fourth quarter of 2014 were $0.44 compared to $0.45 per share in the fourth quarter of 2013. Excluding these charges from both years, diluted earnings per share from continuing operations for the fourth quarter of 2014 were $0.54 per share compared to $0.45 per share in 2013. Earnings before taxes were $1.5 million against $9.0 million a year ago. Net earnings were $17.0 million against $17.2 million a year ago.
Revenue for the full year totaled $5.6 billion, a 3% increase (a 4% increase on a constant currency basis) compared to the prior year. Earnings from operations for the full year of 2014 totaled $21.9 million compared to $53.3 million in 2013. Excluding restructuring charges from both years, earnings from operations were $33.9 million in 2014 compared to $56.6 million in 2013. Diluted earnings per share from continuing operations for the full year of 2014 were $0.61 compared to $1.54 per share in 2013. Excluding these charges from both periods, diluted earnings per share from continuing operations for 2014 were $0.81 per share compared to $1.62 per share in 2013. Earnings before taxes were $16.6 million against $48.8 million a year ago. Net earnings were $23.7 million against $58.9 million a year ago. Net cash used in operating activities was $70.0 million against net cash from operating activities of $115.3 million a year ago. Capital expenditures were $21.7 million against $20.0 million a year ago.
For the full year 2015, the company expected constant currency revenue to be up 6% to 8%. Clearly, currency and the overseas economies are a headwind and could trim about 3% off that top line. 2015 annual income tax rate is expected to be in the low 20% range, including work opportunity credits.
For the first quarter of 2015, the company expected constant currency revenue to be up 6% to 7% on a year-over-year basis with nominal currency to be lower than that. The company expected gross profit rate to be slightly down on a year-over-year basis and flat on a sequential basis.
Kelly Services, Inc. is a specialty talent and workforce solutions provider operating throughout the world. It operates through four segments: Professional & Industrial (P&I); Science, Engineering & Technology (SET); Education, and Outsourcing & Consulting Group (OCG). P&I segment delivers staffing, outcome-based and permanent placement services, providing administrative, accounting and finance, light industrial and contact center staffing and other workforce solutions in the United States and Canada. SET segment delivers staffing, outcome-based and permanent placement services focused on science and clinical research, engineering, technology and telecommunications specialties. Education segment delivers education and therapy services talent through staffing, permanent placement and executive search services to Pre-K-12 school districts and education organizations. OCG segment delivers talent solutions including managed service provider (MSP) and recruitment process outsourcing (RPO).
Kelly Services, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 28, 2014; Provides Earnings Guidance for the First Quarter and Full Year of 2015