Good morning, ladies and gentlemen, and welcome to Kelly Services’ Third 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 Chief Executive Officer. Sir, you may begin.

Thank you, John, and good morning, everyone. Welcome to Kelly Services’ 2015 Q3 conference call. With me on today’s call is Olivier Thirot, our acting 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. As we walk through our quarterly results this morning, let me point out that year-over-year comparisons are represented in constant currency due to ongoing volatility in foreign currency exchange rates. I’ll also point out that as an additional resource to help you navigate our Q3 results, we published a slide deck on the Investor Relations page of our public website summarizing our key financial performance indicators. Now turning to Kelly’s Q3 results, I am pleased to report we once again delivered good performance and solid operating leverage. Revenue for the quarter was $1.4 billion, up 3% year-over-year. Our gross profit rate was 16.9%, an increase of 80 basis points compared to Q3 last year. All told, we achieved earnings from operations of $16.6 million for the quarter, a 51% improvement over last year’s Q3 operating profit in nominal currency, excluding the 2014 restructuring. Kelly’s third quarter earnings from continuing operations in nominal currency were $0.23 per share compared to earnings of $0.10 per share for the same period last year, excluding the 2014 restructuring charges. Our Q3 earnings were negatively impacted by $0.06 per share due to currency. Overall, we are very pleased with Kelly’s performance during the third quarter.…

Thank you, Carl. Revenue totaled $1.4 billion, up 3% in constant currency compared to the third quarter last year. In nominal currency that’s down 3.2% with the difference caused by the continued weak global currency. So, the negative impact of foreign currency on our revenue growth trend was over 600 basis points in Q3, slightly higher than the impact we have seen in Q2. Now, consistent with Carl for the remainder of my comments, year-over-year comparisons are represented in constant currency. Staff and placement fees were down 6% year-over-year as we continue to experience declines in EMEA and APAC. That more than offset the 7% growth we saw in the Americas. In constant currency, overall gross profit was up by $16.3 million, so more than 7%. Our gross profit rate was 16.9%, up 80 basis points when compared to the third quarter last year. Our GP rate reflects effective management of temporary employee payroll tax and benefit expenses combined with continued price discipline in the U.S. In addition, GP for the quarter was positively impacted by the seasonal GP growth in our Kelly connect business and a favorable adjustment to workers compensation expenses. This was partially offset by lower perm fees outside of the U.S. More information regarding our GP rate is available in our Q3 financials slide deck, which is posted on our website. SG&A expenses were up 3.9% year-over-year, excluding the impact of prior year restructuring charges, which reflect continued expense leverage of nearly 50%. Our Q3 result reflect higher salaries and incentive expenses in our U.S. branch-based business as a result of revenue growth and also include the impact of changes in the timing of the expenses related to certain incentive and benefit plans for our corporate services employees. Partially offsetting these increases were continued cost management…

Thank you, Olivier. Our third quarter results confirm that Kelly is operating as a more efficient organization. We are committed to delivering both top line growth and operating leverage consistent with the first half of 2015, and we dropped nearly 50% of our GP growth to the bottom line during the quarter, excluding 2014 restructuring. Our 2014 investments in PT and OCG are yielding results and we’re delivering on a strategic plan that aligns with critical market trends. Accounts serviced through our U.S. branch network are delivering strong sustained growth in our PT specialties, while continuing to grow Kelly’s commercial core. Our investments in local PT markets are yielding solid results, our expanded sales force is pursuing and winning new business while our PT recruiting centers are filling new orders with specialized talent. We are extremely pleased with the PT growth we are seeing in our U.S. branch network and we expect this trend to continue through the balance of the year. Our centralized large account portfolio remains more vulnerable to client specific fluctuations as the impact of low oil prices continues to affect our large natural resources customers, we are maintaining our commitment to price discipline and ensuring our operating expenses are in line with demand. We are also taking steps to address the shift we are seeing in our centralized PT business. As large customers evolved their workforce management strategies and transition from single source to competitive source models, we are adjusting our centralized recruiting to maximize efficiency and productivity. And it is worth noting that as existing customers transition their PT business to a competitive source model, it provides Kelly the opportunity to advance our talent supply chain management strategy. In fact, the growth we are experiencing in CWO where we earned fees by managing competitive source…

[Operator Instructions] And we have Toby Sommer with SunTrust. Please go ahead.

Hi, Toby.

Good morning. Thank you. Carl, what were trends like within the quarter and in October because there was somewhat of a softening of economic data and I’m curious if your business trends reflect that or had a different monthly trend in recent months.

We don’t have the full numbers and information for October but as far as I’ve seen there is no change one way or the other on the trends we have seen before.

We don’t have any trends Toby from our customer saying anything different either.

You would have seen a more tempered tone in our comments here if we have been seeing downward pressure.

Okay. Have you perceived a change in planning horizon in project length among your customers?

No, not. We haven’t seen anything like that at all. It’s really been pretty steady throughout the year the way customers are dealing with us.

Okay. And I had a question about the RPO business. It’s down on the natural resources and that makes sense. How big a proportion of your RPO business comes from that industry and customer set?

Toby, we don’t give the number but what I would tell you is it’s a meaningful part of that business and a substantial part of the drop that you see in the year-over-year.

Okay, that gets to my follow-up would be, are you seeing growth outside of that because we see substantial part of the drop I guess I could infer that overall even outside of that segment the business is down and I’m just curious as to how you may explain a decline outside of the natural resources area.

Yeah. I would say that outside of the natural resources area, we are not seeing real big growth but what we are seeing is that our funnel is getting much better and we are working hard to offset that decline with new customers coming in.

Okay. Is it people new to RPO or is it contracts? Go ahead.

Are you talking about clients?

Yeah. When you say the funnel is improving, is that customers that are new to RPO or renewal contracts coming up and becoming available?

It would be both.

Okay.

We are seeing it in both of those areas.

I’m just curious, Carl, where we sit right now with – you made good progress on the gross profit. Can you share with us any thoughts about your long term or even midterm operating margin goals? The firm did discuss those as we exited the last recession but here we are handful years if not six past that and I’d be curious about your updated thoughts on where you think you can take the company?

It’s a time of flex as you see OCG growing and staffing tepid around the world and that has big impact on what types of return measure you look at. You hear us increasingly talking more about growth in GP dollars which are fee sensitive and a big part of the OC - and obviously a very fundamental part of OCG revenue. And I’m not ready to put a traditional margin number sitting out there that’s an ROS number because fundamentally Kelly’s revenue mix is changing and I’m much more concerned about the overall GP rate and the growth in GP dollars than I am on the revenue side and that affects just the way we look at returns, so not yet.

So let me understand, you focused on GP dollars but certainly that has a relationship to operating margin or EBITDA dollars and cash flow, so I guess I didn’t understand.

The last number we put out was a return on sales number which is we say a few and obviously you remember what we talked about a 4% return which was looking at a traditional rebound from a recession, didn’t see the same, some of the industry shifts and let me put out that number we’ve experienced now, it’s different. So in reference to the 4% return on sales number, no, I’m not particularly willing to put out that number in terms of different types of operating margin perspective.

I think the one thing, Toby, this is George, that you can expect is that over the course of time here, we expect every year to make progress on that goal.

Okay. Thank you very much.

[Operator Instructions] And Mr. Camden, no further questions coming in.

Very good. Thank you, John.

Any closing comments?

No, I think we are good. Thank you.