On July 24, staffing solutions company Kelly Services
- Sales increased a modest 1.6%, and earnings per share from continuing operations rose 24% while net income increased 29.2%.
- The company announced a restructuring of its Americas operations that will result in the closing of approximately 40 commercial branches. Additionally, the acquisition of P-Serv expanded its operations in China, Hong Kong, and Singapore
- Kelly expects full-year 2007 earnings to be in the range of $1.60-$1.70 per share, reflecting the view that the U.S. economy will avoid a recession.
- Kelly Services carries a one-star Motley Fool CAPS rating. Competitors Manpower
(NYSE:MAN) and Spherion Corp.(NYSE:SFN) carry three- and five-star ratings, respectively.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,415.7 |
$1,392.9 |
1.6% |
|
Net Profit* |
$15.3 |
$11.9 |
29.2% |
|
EPS |
$0.41 |
$0.33 |
24.2% |
|
Diluted Shares |
37.0 |
36.2 |
2.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
17.5% |
16% |
1.5 |
|
Operating Margin |
1.6% |
1.4% |
0.1 |
|
Net Margin |
1.1% |
0.9% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$112.5 |
$72.3 |
55.5% |
|
Accounts Rec. |
$869.3 |
$844.2 |
3% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$153.4 |
$114.3 |
34.2% |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$29.7 |
$40.0 |
(25.7%) |
|
Capital Expenditures |
$21.3 |
$14.6 |
46.2% |
|
Free Cash Flow |
$8.4 |
$25.4 |
(67%) |
Free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
