Kelly Services Inc (NASDAQ:KELYB) Q3 2016 Earnings Conference Call - Final Transcript
Nov 07, 2016 • 09:00 am ET
Good morning ladies and gentlemen, and welcome to Kelly Services Third Quarter Earnings Conference Call. All parties will be in a listen-only until the question-and-answer portion of the presentation. Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time.
I would now like to turn the meeting over to your host, Mr. Carl Camden, President and CEO. Sir, you may begin.
Thank you, John and good morning everyone. Welcome to Kelly Services 2016 Q3 conference call. With me on today's call is Olivier Thirot, our CFO, and George Corona, our COO.
(Forward-Looking Cautionary Statements)
As we begin to look at Kelley's third quarter results, let me point out that our year-over-year comparisons are represented in constant currency due to ongoing fluctuations in foreign currency exchange rates with the exception of our year-over-year earnings from operations and earnings per share comparisons which are represented in nominal currency.
And as an additional resource to help you navigate our quarterly results, we once again published a slide deck on the Investor Relations page of our public website summarizing our key financial performance indicators.
Now let's turn to Kelly's third quarter results. It's important to note that during the quarter we transferred our APAC staffing operations to TS Kelly Asia Pacific joint venture which is anticipated had an impact on Kelly's third quarter results. For the sake of clarity, I'll walk through the results this morning with and without the impact of the JV.
Including the impact of the JV, Kelly's reported revenue for the quarter was $1.2 billion, 7.1 decrease compared to last year. We achieved earnings from operations of 18.8 million in the third quarter, up 13% over the 16.6 million we delivered last year. And our third quarter diluted earnings from continuing operations and nominal currency were $2.06 per share compared to earnings of $0.23 per share for the same period last year.
Excluding the impact of the APAC JV, revenue was basically flat for the third quarter, earnings from operations grew by 29 % year over year and adjusted earnings per share were $0.44 compared to $0.19 last year.
All told, we're satisfied with Kelly's performance in the third quarter. Faced with an uncertain economic environment, we delivered strong leverage on top of flat revenue which yielded healthy growth and operating earnings and solid returns for our shareholders.
Now let's take a closer look at the performance in each of our business segments starting with the Americas. Americas third quarter staffing revenue decreased 1% year over year consistent with the 1% revenue decline last quarter. And Americas commercial third quarter revenue decreased 1% year over year consistent with the 1% decline we reported last quarter.
Americas PT revenue for the third quarter declined 1% year over year, slightly better than the 2% decrease we reported in the second quarter. As has been our practice on these earning calls, we'll separately review the results of the two service delivery models