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 Kelly Services(R) Reports 4th Quarter and Full Year 2014 Results
   Thursday, January 29, 2015 7:31:31 AM ET

Kelly Services, Inc. (KELYA ) (KELYB ), a leader in providing workforce solutions, today announced results for the fourth quarter and full year of 2014.

Carl T. Camden, President and Chief Executive Officer, announced 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. 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 fourth quarter of 2014 totaled $2.6 million, compared to $9.6 million reported for the fourth quarter of 2013. Included in the results of operations in the fourth quarter of 2014 are restructuring charges of $6.2 million. The results of operations in the fourth quarter of 2013 included restructuring charges of $0.3 million. 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.

Earnings from operations for the full year of 2014 totaled $21.9 million compared to $53.3 million in 2013. Included in the results from operations for 2014 are restructuring charges of $12.0 million. Included in the results from operations for 2013 are asset impairment charges of $1.7 million and restructuring charges of $1.6 million. Excluding these items from both years, earnings from operations were $33.9 million in 2014 compared to $56.6 million in 2013.

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. Included in diluted earnings per share from continuing operations for the fourth quarter of 2014 are restructuring charges of $0.10 per share. Included in diluted earnings per share from continuing operations for the fourth quarter of 2013 are restructuring charges of $0.01 per share. 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.

Diluted earnings per share from continuing operations for the full year of 2014 were $0.61 compared to $1.54 per share in 2013. Included in diluted earnings per share from continuing operations for 2014 are restructuring charges of $0.19 per share. Included in diluted earnings per share from continuing operations for 2013 are restructuring charges of $0.04 per share and asset impairment charges of $0.04 per share. 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.

Commenting on the fourth quarter, Camden stated, "The fourth quarter capped a year of significant investment at Kelly, and we’re pleased that our performance confirms those investments are gaining traction. With our new delivery models fully in place, we have begun capitalizing on improved U.S. market conditions and increased demand for specialized staffing. The strong results delivered by our OCG segment reflects our ongoing ability to also meet the growing demand for holistic talent management solutions, especially among our largest customers."

In conjunction with its fourth quarter and full year earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on January 29, 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 and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, 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 maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry or market developments, unexpected changes in claim trends on workers’ compensation, disability and medical benefit plans, the impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax laws and the expiration and/or reinstatement of the U.S. work opportunity credit program), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, 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(R)

Kelly Services, Inc. (KELYA ) (KELYB ) is a leader in providing workforce solutions. Kelly(R) 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 provided employment to approximately 555,000 employees in 2014. Revenue in 2014 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

KLYA-FIN



                   KELLY SERVICES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF EARNINGS
       FOR THE 13 WEEKS ENDED DECEMBER 28, 2014 AND DECEMBER 29, 2013
                                (UNAUDITED)
               (In millions of dollars except per share data)
                                                             %       CC %
                          2014      2013     Change        Change   Change
                        --------  --------  --------      -------  --------

Revenue from services   $1,425.0  $1,385.8  $   39.2          2.8%      5.7%

Cost of services         1,192.4   1,154.3      38.1          3.3
                        --------  --------  --------

Gross profit               232.6     231.5       1.1          0.5       3.4

Selling, general and
 administrative
 expenses                  230.0     221.9       8.1          3.6       6.8
                        --------  --------  --------

Earnings from
 operations                  2.6       9.6      (7.0)       (71.7)

Other expense, net           1.1       0.6       0.5         89.6
                        --------  --------  --------

Earnings before taxes        1.5       9.0      (7.5)       (81.8)

Income tax benefit         (15.5)     (8.2)     (7.3)       (89.3)
                        --------  --------  --------

Net earnings            $   17.0  $   17.2  $   (0.2)        (0.2)%
                        ========  ========  ========

Basic earnings per
 share                  $   0.44  $   0.45  $  (0.01)        (2.2)%
Diluted earnings per
 share                  $   0.44  $   0.45  $  (0.01)        (2.2)%


STATISTICS:

Gross profit rate           16.3%     16.7%     (0.4) pts.

Selling, general and
 administrative
 expenses:
  % of revenue              16.1      16.0       0.1
  % of gross profit         98.8      95.9       2.9

% Return:
  Earnings from
   operations                0.2       0.7      (0.5)
  Earnings before taxes      0.1       0.6      (0.5)
  Net earnings               1.2       1.2         -

Effective income tax
 rate                     (949.7)%   (91.1)%  (858.6) pts.

Average number of
 shares outstanding
 (millions):
  Basic                     37.7      37.4
  Diluted                   37.7      37.4

Shares adjusted for
 nonvested restricted
 awards (millions):
  Basic                     38.9      38.6
  Diluted                   38.9      38.6




                   KELLY SERVICES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF EARNINGS
       FOR THE 52 WEEKS ENDED DECEMBER 28, 2014 AND DECEMBER 29, 2013
                                (UNAUDITED)
               (In millions of dollars except per share data)
                                                              %      CC %
                          2014      2013     Change        Change   Change
                        --------  --------  --------      -------- --------

Revenue from services   $5,562.7  $5,413.1  $  149.6           2.8%     3.8%

Cost of services         4,654.3   4,523.6     130.7           2.9
                        --------  --------  --------

Gross profit               908.4     889.5      18.9           2.1      3.2

Selling, general and
 administrative
 expenses                  886.5     834.5      52.0           6.2      7.3

Asset impairments              -       1.7      (1.7)       (100.0)
                        --------  --------  --------

Earnings from
 operations                 21.9      53.3     (31.4)        (59.1)

Other expense, net           5.3       4.5       0.8          15.3
                        --------  --------  --------

Earnings before taxes       16.6      48.8     (32.2)        (66.0)

Income tax benefit          (7.1)    (10.1)      3.0          29.6
                        --------  --------  --------

Net earnings            $   23.7  $   58.9  $  (35.2)       (59.8)%
                        ========  ========  ========

Basic earnings per
 share                  $   0.61  $   1.54  $  (0.93)       (60.4)%
Diluted earnings per
 share                  $   0.61  $   1.54  $  (0.93)       (60.4)%


STATISTICS:

Gross profit rate           16.3%     16.4%     (0.1) pts.

Selling, general and
 administrative
 expenses:
  % of revenue              15.9      15.4       0.5
  % of gross profit         97.6      93.8       3.8

% Return:
  Earnings from
   operations                0.4       1.0      (0.6)
  Earnings before taxes      0.3       0.9      (0.6)
  Net earnings               0.4       1.1      (0.7)

Effective income tax
 rate                      (43.2)%   (20.8)%   (22.4) pts.

Average number of
 shares outstanding
 (millions):
  Basic                     37.5      37.3
  Diluted                   37.5      37.3

Shares adjusted for
 nonvested restricted
 awards (millions):
  Basic                     38.6      38.3
  Diluted                   38.6      38.3



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

                                                Fourth Quarter
                                   ----------------------------------------
                                                                   Constant
                                                                   Currency
                                     2014      2013    Change       Change
                                   --------  -------- -------      --------
AMERICAS
  Commercial
    Revenue from services          $  694.5  $  641.5     8.3%          9.3%
    Staffing fee-based income
     included in revenue from
     services                           4.0       3.4    16.0          17.4
    Gross profit                       99.6      95.7     4.2           5.2
    Gross profit rate                  14.4%     14.9%   (0.5) pts.
  PT
    Revenue from services          $  232.9  $  234.1    (0.5)%       (0.2)%
    Staffing fee-based income
     included in revenue from
     services                           3.9       3.7     4.1           5.0
    Gross profit                       37.5      39.0    (3.6)         (3.3)
    Gross profit rate                  16.1%     16.6%   (0.5) pts.
  Total Americas
    Revenue from services          $  927.4  $  875.6     5.9%          6.7%
    Staffing fee-based income
     included in revenue from
     services                           7.9       7.1     9.8          10.9
    Gross profit                      137.1     134.7     2.0           2.7
    Total SG&A expenses               113.9     109.2     4.4           5.1
    Earnings from operations           23.2      25.5    (8.5)

    Gross profit rate                  14.8%     15.4%   (0.6) pts.
    Expense rates:
      % of revenue                     12.3      12.5    (0.2)
      % of gross profit                83.0      81.1     1.9
    Return on sales                     2.5       2.9    (0.4)

EMEA
  Commercial
    Revenue from services          $  204.5  $  232.2   (12.0)%       (2.4)%
    Staffing fee-based income
     included in revenue from
     services                           3.3       4.9   (31.9)        (19.2)
    Gross profit                       29.6      34.8   (15.1)         (5.6)
    Gross profit rate                  14.4%     15.0%   (0.6) pts.
  PT
    Revenue from services          $   44.8  $   48.0    (6.5)%         2.7%
    Staffing fee-based income
     included in revenue from
     services                           2.8       3.3   (16.0)         (2.5)
    Gross profit                        9.6      10.6    (8.7)          1.8
    Gross profit rate                  21.7%     22.2%   (0.5) pts.
  Total EMEA
    Revenue from services          $  249.3  $  280.2   (11.0)%       (1.5)%
    Staffing fee-based income
     included in revenue from
     services                           6.1       8.2   (25.5)        (12.5)
    Gross profit                       39.2      45.4   (13.6)         (3.9)
    SG&A expenses excluding
     restructuring charges             36.4      42.2   (13.7)
    Restructuring charges                 -       0.3  (100.0)
    Total SG&A expenses                36.4      42.5   (14.4)         (2.9)
    Earnings from operations            2.8       2.9    (2.2)
    Earnings from operations
     excluding restructuring
     charges                            2.8       3.2   (11.8)

    Gross profit rate                  15.7%     16.2%   (0.5) pts.
    Expense rates (excluding
     restructuring charges):
      % of revenue                     14.6      15.1    (0.5)
      % of gross profit                92.8      92.9    (0.1)
    Return on sales (excluding
     restructuring charges)             1.1       1.1       -



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

                                                Fourth Quarter
                                  -----------------------------------------
                                                                   Constant
                                                                   Currency
                                    2014      2013    Change        Change
                                  --------  -------- --------      --------
APAC
  Commercial
    Revenue from services         $   91.3  $   87.3      4.6%          9.7%
    Staffing fee-based income
     included in revenue from
     services                          2.0       2.2     (6.9)         (3.4)
    Gross profit                      11.8      12.5     (5.4)         (0.8)
    Gross profit rate                 12.9%     14.3%    (1.4) pts.
  PT
    Revenue from services         $   11.2  $    9.3     20.1%         26.9%
    Staffing fee-based income
     included in revenue from
     services                          2.0       2.1     (6.3)         (2.2)
    Gross profit                       3.3       3.5     (4.6)          0.2
    Gross profit rate                 29.9%     37.7%    (7.8) pts.
  Total APAC
    Revenue from services         $  102.5  $   96.6      6.1%         11.4%
    Staffing fee-based income
     included in revenue from
     services                          4.0       4.3     (6.6)         (2.8)
    Gross profit                      15.1      16.0     (5.2)         (0.6)
    Total SG&A expenses               13.1      14.7    (11.4)         (6.8)
    Earnings from operations           2.0       1.3     63.9

    Gross profit rate                 14.8%     16.5%    (1.7) pts.
    Expense rates:
      % of revenue                    12.7      15.2     (2.5)
      % of gross profit               85.8      91.8     (6.0)
    Return on sales                    2.1       1.4      0.7

OCG
    Revenue from services         $  164.7  $  148.5     10.9%         11.9%
    Gross profit                      42.3      36.5     15.8          17.1
    Total SG&A expenses               32.6      29.0     12.5          14.8
    Earnings from operations           9.7       7.5     28.5

    Gross profit rate                 25.6%     24.6%     1.0  pts.
    Expense rates:
      % of revenue                    19.8      19.6      0.2
      % of gross profit               77.4      79.6     (2.2)
    Return on sales                    5.8       5.0      0.8



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

                                            December Year to Date
                                  -----------------------------------------
                                                                   Constant
                                                                   Currency
                                    2014      2013    Change        Change
                                  --------  -------- --------      --------
AMERICAS
  Commercial
    Revenue from services         $2,609.6  $2,545.6      2.5%          3.4%
    Staffing fee-based income
     included in revenue from
     services                         14.4      13.2      8.7          10.1
    Gross profit                     379.6     370.2      2.6           3.4
    Gross profit rate                 14.5%     14.5%       -  pts.
  PT
    Revenue from services         $  956.0  $  967.8    (1.2)%        (1.0)%
    Staffing fee-based income
     included in revenue from
     services                         15.6      14.5      7.4           8.1
    Gross profit                     155.9     155.1      0.6           0.8
    Gross profit rate                 16.3%     16.0%     0.3  pts.
  Total Americas
    Revenue from services         $3,565.6  $3,513.4      1.5%          2.2%
    Staffing fee-based income
     included in revenue from
     services                         30.0      27.7      8.0           9.1
    Gross profit                     535.5     525.3      2.0           2.6
    Total SG&A expenses              446.8     419.8      6.5           7.1
    Earnings from operations          88.7     105.5    (15.9)

    Gross profit rate                 15.0%     14.9%     0.1  pts.
    Expense rates:
      % of revenue                    12.5      11.9      0.6
      % of gross profit               83.5      79.9      3.6
    Return on sales                    2.5       3.0     (0.5)

EMEA
  Commercial
    Revenue from services         $  894.7  $  877.5      2.0%          3.5%
    Staffing fee-based income
     included in revenue from
     services                         17.3      19.8    (12.5)         (8.0)
    Gross profit                     130.6     133.6     (2.3)         (0.6)
    Gross profit rate                 14.6%     15.2%    (0.6) pts.
  PT
    Revenue from services         $  190.3  $  179.7      5.9%          6.4%
    Staffing fee-based income
     included in revenue from
     services                         13.5      15.0    (10.0)         (6.4)
    Gross profit                      42.9      42.6      0.7           2.2
    Gross profit rate                 22.6%     23.7%    (1.1) pts.
  Total EMEA
    Revenue from services         $1,085.0  $1,057.2      2.6%          4.0%
    Staffing fee-based income
     included in revenue from
     services                         30.8      34.8    (11.4)         (7.3)
    Gross profit                     173.5     176.2     (1.6)          0.1
    SG&A expenses excluding
     restructuring charges           160.6     164.3     (2.3)
    Restructuring charges              0.8       0.4     60.5
    Total SG&A expenses              161.4     164.7     (2.1)         (0.1)
    Earnings from operations          12.1      11.5      5.5
    Earnings from operations
     excluding restructuring
     charges                          12.9      11.9      7.9

    Gross profit rate                 16.0%     16.7%    (0.7) pts.
    Expense rates (excluding
     restructuring charges):
      % of revenue                    14.8      15.5     (0.7)
      % of gross profit               92.5      93.2     (0.7)
    Return on sales (excluding
     restructuring charges)            1.2       1.1      0.1



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

                                              December Year to Date
                                     --------------------------------------
                                                                   Constant
                                                                   Currency
                                       2014     2013   Change       Change
                                     -------  ------- -------      --------
APAC
  Commercial
    Revenue from services            $ 351.8  $ 344.1     2.2%          5.6%
    Staffing fee-based income
     included in revenue from
     services                            7.9      9.2   (14.7)        (11.5)
    Gross profit                        47.5     49.3    (3.7)         (0.4)
    Gross profit rate                   13.5%    14.3%   (0.8) pts.
  PT
    Revenue from services            $  40.4  $  38.6     4.5%          9.0%
    Staffing fee-based income
     included in revenue from
     services                            7.8      8.8   (11.4)         (7.9)
    Gross profit                        12.7     14.0    (8.8)         (5.0)
    Gross profit rate                   31.6%    36.2%   (4.6) pts.
  Total APAC
    Revenue from services            $ 392.2  $ 382.7     2.5%          6.0%
    Staffing fee-based income
     included in revenue from
     services                           15.7     18.0   (13.1)         (9.8)
    Gross profit                        60.2     63.3    (4.8)         (1.4)
    SG&A expenses excluding
     restructuring charges              56.4     60.2    (6.3)
    Restructuring charges                1.3      0.3   373.4
    Total SG&A expenses                 57.7     60.5    (4.5)         (0.8)
    Earnings from operations             2.5      2.8   (11.0)
    Earnings from operations
     excluding restructuring charges     3.8      3.1    24.7

    Gross profit rate                   15.4%    16.5%   (1.1) pts.
    Expense rates (excluding
     restructuring charges):
      % of revenue                      14.4     15.7    (1.3)
      % of gross profit                 93.6     95.1    (1.5)
    Return on sales (excluding
     restructuring charges)              1.0      0.8     0.2

OCG
    Revenue from services            $ 586.8  $ 509.5    15.2%         15.7%
    Gross profit                       143.6    128.2    12.0          12.4
    SG&A expenses excluding
     restructuring charges             127.3    110.6    15.1
    Restructuring charges                  -      0.9  (100.0)
    Total SG&A expenses                127.3    111.5    14.3          15.0
    Asset impairments                      -      1.7  (100.0)
    Earnings from operations            16.3     15.0     7.3
    Earnings from operations
     excluding restructuring charges    16.3     15.9     1.8

    Gross profit rate                   24.5%    25.2%   (0.7) pts.
    Expense rates (excluding
     restructuring charges):
      % of revenue                      21.7     21.7       -
      % of gross profit                 88.7     86.3     2.4
    Return on sales (excluding
     restructuring charges)              2.8      3.1    (0.3)



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

                                                   Dec. 28,      Dec. 29,
                                                     2014          2013
                                                 ------------  ------------
Current Assets
  Cash and equivalents                           $       83.1  $      125.7
  Trade accounts receivable, less allowances of
   $10.7 and $9.9, respectively                       1,122.8       1,023.1
  Prepaid expenses and other current assets              47.9          52.2
  Deferred taxes                                         34.4          35.5
                                                 ------------  ------------
  Total current assets                                1,288.2       1,236.5

Property and Equipment, Net                              93.0          92.0

Noncurrent Deferred Taxes                               146.3         121.7

Goodwill, Net                                            90.3          90.3

Other Assets                                            300.1         258.1
                                                 ------------  ------------

Total Assets                                     $    1,917.9  $    1,798.6
                                                 ============  ============

Current Liabilities
  Short-term borrowings                          $       91.9  $       28.3
  Accounts payable and accrued liabilities              364.0         342.4
  Accrued payroll and related taxes                     308.5         294.9
  Accrued insurance                                      26.9          27.6
  Income and other taxes                                 68.8          68.8
                                                 ------------  ------------

Total current liabilities                               860.1         762.0

Noncurrent Liabilities
  Accrued insurance                                      43.9          46.0
  Accrued retirement benefits                           140.8         134.7
  Other long-term liabilities                            39.4          33.3
                                                 ------------  ------------

Total noncurrent liabilities                            224.1         214.0

Stockholders’ Equity
  Common stock                                           40.1          40.1
  Treasury stock                                        (49.8)        (56.2)
  Paid-in capital                                        24.9          26.0
  Earnings invested in the business                     767.4         751.3
  Accumulated other comprehensive income                 51.1          61.4
                                                 ------------  ------------

Total stockholders’ equity                              833.7         822.6
                                                 ------------  ------------

Total Liabilities and Stockholders’ Equity       $    1,917.9  $    1,798.6
                                                 ============  ============


STATISTICS:
Working Capital                                  $      428.1  $      474.5
Current Ratio                                             1.5           1.6
Debt-to-capital %                                         9.9%          3.3%
Global Days Sales Outstanding                              54            52



                   KELLY SERVICES, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
       FOR THE 52 WEEKS ENDED DECEMBER 28, 2014 AND DECEMBER 29, 2013
                                (UNAUDITED)
                          (In millions of dollars)

                                                     2014          2013
                                                 ------------  ------------
Cash flows from operating activities:
  Net earnings                                   $       23.7  $       58.9
  Noncash adjustments:
    Impairment of assets                                    -           1.7
    Depreciation and amortization                        21.7          20.4
    Provision for bad debts                               5.3           2.0
    Stock-based compensation                              5.3           3.8
    Other, net                                           (0.4)          0.6
  Changes in operating assets and liabilities          (125.6)         27.9
                                                 ------------  ------------

    Net cash (used in) from operating activities        (70.0)        115.3
                                                 ------------  ------------

Cash flows from investing activities:
  Capital expenditures                                  (21.7)        (20.0)
  Investment in equity affiliate                         (5.7)            -
  Other investing activities                              0.2          (0.8)
                                                 ------------  ------------

    Net cash used in investing activities               (27.2)        (20.8)
                                                 ------------  ------------

Cash flows from financing activities:
  Net change in short-term borrowings                    63.9         (35.8)
  Dividend payments                                      (7.6)         (7.6)
  Other financing activities                              0.3          (0.3)
                                                 ------------  ------------

    Net cash from (used in) financing activities         56.6         (43.7)
                                                 ------------  ------------

Effect of exchange rates on cash and equivalents         (2.0)         (1.4)
                                                 ------------  ------------

Net change in cash and equivalents                      (42.6)         49.4
Cash and equivalents at beginning of period             125.7          76.3
                                                 ------------  ------------


Cash and equivalents at end of period            $       83.1  $      125.7
                                                 ============  ============



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

                                  Fourth Quarter (Commercial, PT and OCG)
                               --------------------------------------------
                                                             % Change
                                                                   Constant
                                  2014        2013        US$      Currency
                               ----------  ----------  ---------  ---------

Americas
  United States                $    933.9  $    872.6        7.0%       7.0%
  Canada                             50.0        52.4       (4.5)       3.2
  Mexico                             36.7        33.9        8.2       15.2
  Puerto Rico                        26.6        24.6        8.3        8.3
  Brazil                             13.9        14.0       (0.6)       7.6
                               ----------  ----------
Total Americas                    1,061.1       997.5        6.4        7.1

EMEA
  France                             66.4        66.1        0.4        9.2
  Switzerland                        57.8        70.3      (17.9)     (12.7)
  Portugal                           32.4        27.3       18.9       29.4
  United Kingdom                     23.2        27.2      (14.7)     (13.0)
  Russia                             20.9        33.0      (36.6)      (9.3)
  Germany                            16.8        17.5       (4.1)       4.2
  Italy                              13.9        15.3       (8.7)      (0.8)
  Norway                             11.9        14.8      (19.9)      (9.8)
  Other                              13.6        16.9      (19.4)     (12.0)
                               ----------  ----------
Total EMEA                          256.9       288.4      (10.9)      (1.5)

APAC
  Singapore                          32.7        30.6        7.0       10.8
  Australia                          32.6        30.2        7.9       16.8
  Malaysia                           16.2        16.1        0.6        5.4
  New Zealand                        13.2        14.0       (6.1)      (0.6)
  Other                              12.3         9.0       37.1       37.5
                               ----------  ----------
Total APAC                          107.0        99.9        7.1       12.6

Total Kelly Services, Inc.     $  1,425.0  $  1,385.8        2.8%       5.7%
                               ==========  ==========



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

                             December Year to Date (Commercial, PT and OCG)
                             ----------------------------------------------
                                                            % Change
                                                                  Constant
                                2014        2013         US$      Currency
                             ----------  ----------  ----------  ----------

Americas
  United States              $  3,535.8  $  3,419.9         3.4%        3.4%
  Canada                          198.2       216.3        (8.4)       (1.9)
  Mexico                          139.0       133.3         4.3         8.7
  Puerto Rico                     105.0        98.2         6.9         6.9
  Brazil                           57.1        59.0        (3.2)        5.8
                             ----------  ----------
Total Americas                  4,035.1     3,926.7         2.8         3.4

EMEA
  France                          268.6       248.1         8.3         8.3
  Switzerland                     253.5       255.9        (0.9)       (2.5)
  Portugal                        124.8        90.3        38.2        38.5
  Russia                          117.3       135.0       (13.1)        2.2
  United Kingdom                  105.6       105.3         0.3        (5.1)
  Germany                          67.5        66.8         1.1         1.2
  Italy                            60.2        58.9         2.2         1.9
  Norway                           55.5        61.1        (9.2)       (3.2)
  Other                            64.5        67.6        (4.6)       (4.4)
                             ----------  ----------
Total EMEA                      1,117.5     1,089.0         2.6         4.0

APAC
  Singapore                       127.5       114.1        11.8        13.2
  Australia                       121.4       130.6        (7.1)       (0.7)
  Malaysia                         66.2        67.2        (1.4)        2.4
  New Zealand                      51.4        50.1         2.5         1.4
  Other                            43.6        35.4        23.2        30.2
                             ----------  ----------
Total APAC                        410.1       397.4         3.2         6.8

Total Kelly Services, Inc.   $  5,562.7  $  5,413.1         2.8%        3.8%
                             ==========  ==========



                   KELLY SERVICES, INC. AND SUBSIDIARIES
                    RECONCILIATION OF NON-GAAP MEASURES
       FOR THE 13 WEEKS ENDED DECEMBER 28, 2014 AND DECEMBER 29, 2013
                                (UNAUDITED)
               (In millions of dollars except per share data)

                                       2014                  2013
                        ---------------------------------  --------
                                  Restructuring
                           As        Charges     Adjusted  Adjusted     %
                        reported     (Note 1)    Earnings  Earnings  Change
                        --------  -------------  --------  --------  ------

Revenue from services   $1,425.0  $           -  $1,425.0  $1,385.8     2.8%

Cost of services         1,192.4              -   1,192.4   1,154.3     3.3
                        --------  -------------  --------  --------  ------

Gross profit               232.6              -     232.6     231.5     0.5

SG&A expenses              230.0           (6.2)    223.8     221.6     1.1
                        --------  -------------  --------  --------  ------

Earnings from operations     2.6            6.2       8.8       9.9    (9.7)

Other expense, net           1.1              -       1.1       0.6    89.6
                        --------  -------------  --------  --------  ------

Earnings before taxes        1.5            6.2       7.7       9.3   (15.7)

Inc. tax (benefit)
 expense*                  (15.5)           2.4     (13.1)     (8.2)  (60.2)
                        --------  -------------  --------  --------  ------

Net earnings            $   17.0  $         3.8  $   20.8  $   17.5    19.8%
                        ========  =============  ========  ========  ======

Earnings per share:
  Basic                 $   0.44  $        0.10  $   0.54  $   0.45    20.0%
  Diluted               $   0.44  $        0.10  $   0.54  $   0.45    20.0%

* Income tax benefit for the fourth quarter of 2014 includes $13.6 million
 related to the retroactive reinstatement of work opportunity credits for
 the entire year.

                                       2013
                        ---------------------------------
                                  Restructuring
                           As        Charges     Adjusted
                        reported     (Note 1)    Earnings
                        --------  -------------  --------

Revenue from services   $1,385.8  $           -  $1,385.8

Cost of services         1,154.3              -   1,154.3
                        --------  -------------  --------

Gross profit               231.5              -     231.5

SG&A expenses              221.9           (0.3)    221.6
                        --------  -------------  --------

Earnings from operations     9.6            0.3       9.9

Other expense, net           0.6              -       0.6
                        --------  -------------  --------

Earnings before taxes        9.0            0.3       9.3

Inc. tax (benefit)
 expense                    (8.2)             -      (8.2)
                        --------  -------------  --------

Net earnings            $   17.2  $         0.3  $   17.5
                        ========  =============  ========

Earnings per share:
  Basic                 $   0.45  $        0.01  $   0.45
  Diluted               $   0.45  $        0.01  $   0.45

Note: Earnings per share amounts for each quarter are required to be
 computed independently and may not equal the amounts computed for the
 total year.


                   KELLY SERVICES, INC. AND SUBSIDIARIES
                    RECONCILIATION OF NON-GAAP MEASURES
      FOR THE 52 WEEKS ENDED DECEMBER 28, 2014 AND DECEMBER 29, 2013
                                (UNAUDITED)
              (In millions of dollars except per share data)

                                   2014                    2013
                   ------------------------------------  --------
                             Restructuring
                      As        Charges       Adjusted   Adjusted     %
                   reported     (Note 1)      Earnings   Earnings   Change
                   --------  -------------  -----------  --------  -------

Revenue from
 services          $5,562.7  $           -  $   5,562.7  $5,413.1      2.8%

Cost of services    4,654.3              -      4,654.3   4,523.6      2.9
                   --------  -------------  -----------  --------  -------

Gross profit          908.4              -        908.4     889.5      2.1

SG&A expenses         886.5          (12.0)       874.5     832.9      5.0
                   --------  -------------  -----------  --------  -------

Earnings from
 operations            21.9           12.0         33.9      56.6    (40.2)

Other expense, net      5.3              -          5.3       4.5     15.3
                   --------  -------------  -----------  --------  -------

Earnings before
 taxes                 16.6           12.0         28.6      52.1    (45.0)

Inc. tax (benefit)
 expense               (7.1)           4.5         (2.6)    (10.0)    74.0
                   --------  -------------  -----------  --------  -------

Net earnings       $   23.7  $         7.5  $      31.2  $   62.1   (49.7)%
                   ========  =============  ===========  ========  =======

Earnings per share:
  Basic            $   0.61  $        0.19  $      0.81  $   1.62    (50.0)%
  Diluted          $   0.61  $        0.19  $      0.81  $   1.62    (50.0)%

                                        2013
                   ----------------------------------------------
                             Restructuring     Asset
                      As        Charges     Impairments  Adjusted
                   reported     (Note 1)      (Note 2)   Earnings
                   --------  -------------  -----------  --------

Revenue from
 services          $5,413.1  $           -  $         -  $5,413.1

Cost of services    4,523.6              -            -   4,523.6
                   --------  -------------  -----------  --------

Gross profit          889.5              -            -     889.5

SG&A expenses         834.5           (1.6)           -     832.9

Asset impairments       1.7              -         (1.7)        -
                   --------  -------------  -----------  --------

Earnings from
 operations            53.3            1.6          1.7      56.6

Other expense, net      4.5              -            -       4.5
                   --------  -------------  -----------  --------

Earnings before
 taxes                 48.8            1.6          1.7      52.1

Inc. tax (benefit)
 expense              (10.1)           0.1            -     (10.0)
                   --------  -------------  -----------  --------

Net earnings       $   58.9  $         1.5  $       1.7  $   62.1
                   ========  =============  ===========  ========

Earnings per share:
  Basic            $   1.54  $        0.04  $      0.04  $   1.62
  Diluted          $   1.54  $        0.04  $      0.04  $   1.62

Note: Earnings per share amounts for each quarter are required to be
 computed independently and may not equal the amounts computed for the
 total year.

                    KELLY SERIVCES, INC. AND SUBSIDIARIES
                     RECONCILIATION OF NON-GAAP MEASURES
                                 (UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges and asset impairment charges is useful to understand the Company’s fiscal 2014 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) Restructuring charges in 2014 includes costs related to the U.S. management simplification restructuring plan, costs incurred for exiting the staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand. Restructuring charges in 2013 relate to the Company’s decision to exit the executive search business operating in Germany, and primarily relate to severance costs from exiting this business.

(2) Asset impairment charges represent the write-off of the carrying value of long-lived assets related to the decision to exit the executive search business operating in Germany.

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

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


SOURCE: Kelly Services




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