Kelly Services(R) Reports 4th Quarter and Full Year 2011 Results

TROY, MI, Feb 02 (MARKET WIRE) --
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(R) 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

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) (NASDAQ:
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.

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)

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

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)

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

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

Fourth Quarter
---------------------------------------------
Constant
Currency
2011 2010 Change 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 -

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

Fourth Quarter
----------------------------------------------
Constant
Currency
2011 2010 Change 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

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

Fourth Quarter
---------------------------------------------
Constant
Currency
2011 2010 Change 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)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

December Year to Date
---------------------------------------------
Constant
Currency
2011 2010 Change 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

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

December Year to Date
---------------------------------------------
Constant
Currency
2011 2010 Change 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

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)

December Year to Date
---------------------------------------------
Constant
Currency
2011 2010 Change 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

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)

January 1, January 2,
2012 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

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)

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
============ ============

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

Fourth Quarter (Commercial, PT and OCG)
------------------------------------------
% Change
Constant
2011 2010 US$ 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%
========== ==========

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)

December Year to Date (Commercial, PT and OCG)
----------------------------------------------
% Change
Constant
2011 2010 US$ 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%
=========== ===========

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)

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
=========== =========== =========== ===========

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.

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (PROFORMA)
2011 DECEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)

Americas EMEA
-------------------------- --------------------------
Comm PT Total Comm PT Total
-------- -------- -------- -------- -------- --------
Revenue from
services $2,660.9 $ 982.8 $3,643.7 $ 990.1 $ 178.9 $1,169.0
Cost of services 2,283.9 834.6 3,118.5 829.5 131.5 961.0
-------- -------- -------- -------- -------- --------
Gross profit 377.0 148.2 525.2 160.6 47.4 208.0
SG&A expenses 398.5 190.0
-------- --------
Earnings from
operations $ 126.7 $ 18.0
======== ========

APAC Corp Exp
-------------------------- and Consol
Comm PT Total OCG Elims Total
-------- -------- -------- -------- -------- --------
Revenue from
services $ 397.6 $ 51.4 $ 449.0 $ 317.3 $ (28.0) $5,551.0
Cost of services 341.9 30.8 372.7 230.0 (25.3) 4,656.9
-------- -------- -------- -------- -------- --------
Gross profit 55.7 20.6 76.3 87.3 (2.7) 894.1
SG&A expenses 77.0 89.9 81.0 836.4
-------- -------- -------- --------
Earnings from
operations $ (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.

ANALYST CONTACT:
James Polehna
(248) 244-4586
james_polehna@kellyservices.com

MEDIA CONTACT:
Jane Stehney
(248) 244-5630
jane_stehney@kellyservices.com

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