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Tag Valoff TG Research
Good morning, ladies and gentlemen, and welcome to Kelly Services First Quarter Earnings nhs jobs Conference nhs jobs Call. All parties will be on listen-only until the question-and-answer nhs jobs portion of the presentation. Today s call is being recorded nhs jobs at the request of Kelly Services.
Let me remind you that any comments nhs jobs made during this call, including the Q&A may include forward -looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments and we have no obligation to update the statements made on this call. Please refer to our SEC filings for a description of the Risk Factors that could influence the company s actual future performance.
Turning the Kelly s first quarter results, I m pleased to report nhs jobs that our performance was clearly better than our expectations and confirm that we re fully committed to making necessary strategic investments. Revenue was $1.3 billion, up 1% year-over-year, a slow but not surprising start given that the first quarter is typically the weakest in our industry cycle.
Our nhs jobs gross profit rate for the first quarter was 16.7%, up 20 basis points from 16.5% delivered in the same period last year. Expenses were also up coming in at 3% higher year over year which was in line with our expectations for the quarter and reflects our planned investments.
As anticipated, these investments nhs jobs cut into our first quarter earnings a bit. We achieved an operating profit of $6.3 million down compared to the $7.1 million for the first quarter last year and down from the $9.9 million in the fourth quarter. Kelly s first quarter earnings from continuing operations were $0.07 per share compared to adjusted earnings of $0.30 per share for the same period of last year.
Patricia will cover our quarterly performance in more detail a bit later. But I can tell you overall, we re extremely nhs jobs pleased for Kelly s performance during the first quarter. We re doing precisely what we set out to do delivering a profit while acting on investments that will accelerate our long-term growth objectives.
Now let s take a closer look at our performance in each of our business segments beginning with the Americas. Revenue demand in the Americas remain soft as temporary job growth continues to lag in the market segments we service.
Combined staffing revenue for the region was down just under 4% year-over-year nhs jobs for the first quarter, consistent with the 4% decline we reported in both the third and fourth quarters of 2013. Americas commercial revenue was down 4% year-over-year in the first quarter about the same as the 3% decrease we reported in Q4.
Office clerical was down 6% for the quarter which was an improvement year over year and an improvement nhs jobs from the 10% reduction we saw last quarter. We continue to see significant growth from our new customer wins and our Kelly Educational Staffing unit which we revenue growth of nearly 43% year-over-year in the first quarter, pretty consistent with the 47% growth in Q4.
Our science and engineering businesses continue to be the strongest performers during the quarter. However, the results were offset by lower revenue in our IT and finance business lines which underperformed the market.
Combined fees for the quarter were up 1% year-over-year and down 3% on a sequential basis. PT fees were up 6% and relatively flat sequentially. While our commercial fees were down 4% year-over-year and down 5% sequentially.
As expected, the majority of this increase is due to the planned nhs jobs investments which include additional headcount on our sales and recruiting staff. The investments we re making in the Americas will position Kelly to better capitalize on growth opportunities in the PT Specialties and vertical market we serve.
Now let s turn to our operations outside the Americas beginning with EMEA. Revenue in EMEA was up 10% in the first quarter, compared to last year. On a constant currency basis, revenue was up by 9% with 7% revenue growth in our professional and technical businesses nhs jobs on a year-over-year basis. For the remainder of my EMEA discussion, all revenue results will be discussed in constant currency. Sales increases in EMEA during the quarter were driven by solid increases in our larger international and national accounts as well accelerating growth in our local business.
But large and local revenue grew at 9% for the quarter. We achieved growth of 10% year over year in the Western Europe primarily due to the solid performance of our operations in Portugal and Switzerland.
Adjusted expenses decreased slightly due to ongoing reductions in headquarters cost across the region. Netting it all out, EMEA exceeded our expectations by reporting a profit of more than $2 million for the first quarter, an increase of $2.3 million compared to the same period of last year.
Next let s turn to APAC. Improved staffing volume
Tag Valoff TG Research
Good morning, ladies and gentlemen, and welcome to Kelly Services First Quarter Earnings nhs jobs Conference nhs jobs Call. All parties will be on listen-only until the question-and-answer nhs jobs portion of the presentation. Today s call is being recorded nhs jobs at the request of Kelly Services.
Let me remind you that any comments nhs jobs made during this call, including the Q&A may include forward -looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments and we have no obligation to update the statements made on this call. Please refer to our SEC filings for a description of the Risk Factors that could influence the company s actual future performance.
Turning the Kelly s first quarter results, I m pleased to report nhs jobs that our performance was clearly better than our expectations and confirm that we re fully committed to making necessary strategic investments. Revenue was $1.3 billion, up 1% year-over-year, a slow but not surprising start given that the first quarter is typically the weakest in our industry cycle.
Our nhs jobs gross profit rate for the first quarter was 16.7%, up 20 basis points from 16.5% delivered in the same period last year. Expenses were also up coming in at 3% higher year over year which was in line with our expectations for the quarter and reflects our planned investments.
As anticipated, these investments nhs jobs cut into our first quarter earnings a bit. We achieved an operating profit of $6.3 million down compared to the $7.1 million for the first quarter last year and down from the $9.9 million in the fourth quarter. Kelly s first quarter earnings from continuing operations were $0.07 per share compared to adjusted earnings of $0.30 per share for the same period of last year.
Patricia will cover our quarterly performance in more detail a bit later. But I can tell you overall, we re extremely nhs jobs pleased for Kelly s performance during the first quarter. We re doing precisely what we set out to do delivering a profit while acting on investments that will accelerate our long-term growth objectives.
Now let s take a closer look at our performance in each of our business segments beginning with the Americas. Revenue demand in the Americas remain soft as temporary job growth continues to lag in the market segments we service.
Combined staffing revenue for the region was down just under 4% year-over-year nhs jobs for the first quarter, consistent with the 4% decline we reported in both the third and fourth quarters of 2013. Americas commercial revenue was down 4% year-over-year in the first quarter about the same as the 3% decrease we reported in Q4.
Office clerical was down 6% for the quarter which was an improvement year over year and an improvement nhs jobs from the 10% reduction we saw last quarter. We continue to see significant growth from our new customer wins and our Kelly Educational Staffing unit which we revenue growth of nearly 43% year-over-year in the first quarter, pretty consistent with the 47% growth in Q4.
Our science and engineering businesses continue to be the strongest performers during the quarter. However, the results were offset by lower revenue in our IT and finance business lines which underperformed the market.
Combined fees for the quarter were up 1% year-over-year and down 3% on a sequential basis. PT fees were up 6% and relatively flat sequentially. While our commercial fees were down 4% year-over-year and down 5% sequentially.
As expected, the majority of this increase is due to the planned nhs jobs investments which include additional headcount on our sales and recruiting staff. The investments we re making in the Americas will position Kelly to better capitalize on growth opportunities in the PT Specialties and vertical market we serve.
Now let s turn to our operations outside the Americas beginning with EMEA. Revenue in EMEA was up 10% in the first quarter, compared to last year. On a constant currency basis, revenue was up by 9% with 7% revenue growth in our professional and technical businesses nhs jobs on a year-over-year basis. For the remainder of my EMEA discussion, all revenue results will be discussed in constant currency. Sales increases in EMEA during the quarter were driven by solid increases in our larger international and national accounts as well accelerating growth in our local business.
But large and local revenue grew at 9% for the quarter. We achieved growth of 10% year over year in the Western Europe primarily due to the solid performance of our operations in Portugal and Switzerland.
Adjusted expenses decreased slightly due to ongoing reductions in headquarters cost across the region. Netting it all out, EMEA exceeded our expectations by reporting a profit of more than $2 million for the first quarter, an increase of $2.3 million compared to the same period of last year.
Next let s turn to APAC. Improved staffing volume
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