Good morning, ladies and gentlemen, and welcome to Kelly Services’ First Quarter Earnings Conference Call. All parties will be on 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, good morning, everyone. Welcome to Kelly Services’ 2016 first quarter conference call. With me on today’s call is Olivier Thirot, our CFO; and George Corona, our COO. Let me remind you that any comments 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. Before we look at Q1 results, let me notice we announced in our press release earlier this morning that Kelly's Board of Directors has declared a 50% cash dividend increase for our stock holders. We're very pleased that our strong, sustained operating results in 2015 have given us the ability to deliver this increase and to enhance shareholder value. As we look at our first quarter 2016 results, let me point out that the year-over-year comparisons are represented in constant currency due to ongoing volatility in foreign currency exchange rates, with the exception of our year-over-year earnings from operations comparisons, which are represented in nominal currency. As additional resource to help you navigate our Q1 results, we've once again published a slide deck on the Investor Relations page of our public website, summarizing our key financial performance indicators. Now turning to Kelly's first quarter results, I am pleased to repot that Kelly delivered solid year-over-year growth on both the top and bottom lines. Revenue for the quarter was $1.3 billion, up roughly 5% year-over-year. We achieved earnings from operations of $15 million for the quarter, a 22% increase compared to the $12 million delivered in the first quarter last year. Kelly's…

Thank you, Carl. Revenue totaled $1.3 billion, up 4.6% in constant currency, compared to the first quarter last year. And even as we anniversary the strengthening of the U.S. dollar, which began in late 2014, our nominal currency revenue continues to be impacted by global currencies. Although the FX impact has moderated, it's still at the 240 basis points impact on our year-over-year reported revenue growth rate in Q1. Now consistent with Carl, the remainder of my year-over-year comments are represented in constant currency. Staffing and placement fees were up 7% year-over-year as the solid fee growth we saw in the Americas and the continued positive fee trend in EMEA in Q1 are partially offset by declines in APAC. In constant currency, overall gross profit was up $17 million nearly 8%. Our gross profit rate was 17.3% up 60 basis points when compared to the first quarter last year. Our GP rate reflects an improving GP rate in our U.S. staffing business as a result of effective management of temporary employee payroll tax and benefit expenses and to a lesser extent improvements in perm fees coupled with an improving GP rate in our OCG business. SG&A expenses were up 6.7% year-over-year. Approximately half of the increase was related to one-time cost and unfavorable phasing of expenses for benefit programs that are a component of corporate expenses. In our operating units, expense increases were in line with GP growth and leverage expectations. Excluding the unfavorable impact of corporate benefit expenses, the level of expense growth is consistent with our Q1 guidance. Q1 operating leverage is historically lower than other quarters given the lower seasonal volume. We'll continue to remain vigilant in both expense control and we'll manage expenses in line with GP growth for the full year. Earnings from operations were…

Thank you, Olivier. When we closed out 2015, we said that Kelly has set its sights on becoming an even more competitive consultative and profitable company. I think today’s quarterly report demonstrates that we are actively reshaping our business to make that vision a reality. Our investments in higher margin PT and OCG are yielding results and we're delivering on a strategic plan that aligns with market trends and positions Kelly as a leader in the global workforce solutions market. Accounts service through our U.S. branch network ushered in the New Year with strong sustained growth in our PT Specialties as our PT sales and recruiting teams continue to excel on our new operating model efficiently connecting our U.S. customers with specialized talents. And after a year of tough challenging headwinds, our centrally delivered account portfolio was building on signs of improved performance we saw at the end of 2015 and will continue to adjust for centralized accounts structure to respond to trends in this segment. As existing large customers transition their PT business to a competitive source model, it creates new opportunities in Kelly's talent supply chain management strategy and we're responding to this market shift by aggressively pursuing growth and our CWO, RPO and BPO businesses. In our international segments, we're pleased with the EMEA region's continued ability to deliver effective cost control, while driving solid revenue growth yielding strong improvements in operating earnings and in APAC, our expanded joint venture is a step forward in the evolution of Kelly's strategy for the region. Not only will we be forming the largest workforce solutions company in Asia Pacific, the JV provides us with accelerated growth opportunities and enhanced competitive positioning across the dynamic region. As we mentioned when we first announced the JV, as a sign of our…

[Operator Instructions] And we go to the line of John Healy with Northcoast Research. Please go ahead.

Carl or George, I wanted to ask a question, just kind of how you deal with the North American market from just an employment standpoint. I know there is a lot of initiatives underway to kind of spur the growth rate of the company, but just the behavior of their customers. So I was hoping that you could kind of qualitatively talk about how your large customer are behaving as well as how your midsized and small customers are behaving and the way you think they are out in terms deploying labor cycle.

Yes, so what I would tell you is let's see, various exceptions that come from specific industries like oil and gas. When I look at our large customers, I view what our discussion with them and where they're going is what I recall stable. They're not looking into -- they don't have large projects, but they're telling us looking forward get ready, we're adding 4,000 people and they don't have the opposite, which is get ready or going to get rid of 1,000 people. It's been a pretty environment and with those large customers, I would also tell you that there cadence is moving towards solutions continues. And so we continue to see higher activity around bid and proposal activity for things like our MSP services and OCG, RPO and the like. So they continue to move their business more towards the solution spend. And the smaller customer base there, they're pretty healthy right now. They continue -- we continue to see growth opportunities and good demand. The issue that's going to come in there is in the employment side of the market. We're starting to see that it's getting -- recruiting is getting tighter. Particularly when you get into the more credential areas, we see that it's getting harder to fill those orders and more expensive to try to find the people, but even in some of the more entry level blue color kinds of things, it's getting harder now to fill those orders as well, which you would expect as the unemployment rate has been coming down. So you've got that -- we're at that time in the marketplace where it’s starting to get harder to find people, but the demand is I would call steady.

If you're asking about what we -- often the traditional red flags going we're not there yet, if that's what you're asking John?

I wasn’t trying to assume that there happening and just wanted to just get an update. As the -- as you look at kind of the performance of the consolidated centers versus -- centralized centers versus the local market starts, as you look at those centralized centers, is there any thought that may be anything needs to be done differently to maybe change the way you're serving the customer or maybe how you're operating those types of centers?

What I would say is that’s what we've been doing over the last year is really changing. So there is a couple things going on inside those large centers okay. One is the volatility is always going to be there and with our oil and gas customers there is just volatility on the demand. So we're not losing market share, but things are going on in their perspective. As I said earlier, we continue to see this cadence from master vendor to vendor neutral solutions. That gets us at the core of what you're talking about, which is we have to get better at delivering on the vendor neutral space because more of the -- especially more of the PT business in that area is going to not come through master vendor contracts, but that move is going to continues. That behooves us to get much more efficient in the way that we manage and there is going to be always in those large customers margin pressure and so what I would tell you is we're continuing to shift our model there as we move forward. But the volatility will not go away and that volatility can go both ways. We get $70 federal of oil price, you'll see that volatility move in very different way.

Okay. That makes sense. And then just a housekeeping question, in terms of just the FX drag in Q2, are we thinking more of like about a point or two, is that kind of a reasonable way to think about it from an FX headwind?

You mean for the remaining of the year?

I was thinking for 2Q and remainder of the year.

Yes it should be, if it goes all the way to know what is next, but I think now we're at about [1250] basis points impact. The main driver now is probably more like Latin America, a little bit EMEA but more now APAC. So yes I would say something around 200, 250 basis points should be what we could expect for the remaining of the year.

Okay. All right. Thank you.

Thank you.

[Operator Instructions] And allowing a few moments, Mr. Camden there are no further questions coming in.

Great. Thank you, John. Thank you all on the call.

Ladies and gentlemen that does conclude your conference for today. Thank you for your participation. You may now disconnect.