ManpowerGroup : Reports 1st Quarter 2012 Results
04/20/2012| 07:35am US/Eastern
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MILWAUKEE, April 20, 2012 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2012 were $40.2 million, or 50 cents per diluted share, compared to net earnings of $35.7 million, or 43 cents per diluted share, a year earlier. Revenues for the first quarter were $5.1 billion, similar to the prior year, up 3% in constant currency.
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Net earnings in the first quarter were negatively impacted by 2 cents per diluted share, as foreign currencies were relatively weaker compared to the prior year period.
Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "We were able to achieve very solid profitability despite the continued headwinds of slow economic growth. Our geographic foot print, wide range of offerings and very good expense management contributed to the strong quarter. Our workforce solutions business continued to grow by solid double digits while our permanent recruitment business continues to outpace last year.
"We anticipate second quarter earnings per share will range between 68 cents to 76 cents. This includes an unfavorable impact of 4 cents per share related to currency changes in the quarter."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 20, 2012 at 7:30 a.m. CDT (8:30 a.m. EDT). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://www.manpowergroup.com/investors.
Supplemental financial information referenced in the conference call can be found at http://www.manpowergroup.com/investors.
About ManpowerGroup(TM)
ManpowerGroup(TM) (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world's largest and industry-leading network of nearly 3,800 offices in 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined -- because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup(TM) Solutions, Manpower®, Experis(TM) and Right Management®. Learn more about how the ManpowerGroup can help you win in the Human Age at www.manpowergroup.com.
ManpowerGroup is the most trusted brand in the industry, and was once again the only company in our industry to be named to the Ethisphere Institute's 2012 World's Most Ethical Companies list for our proven commitment to ethical business practices, including an outstanding commitment to ethical leadership, compliance practices and corporate social responsibility.
In January 2011, at the World Economic Forum Annual Meeting in Davos, Switzerland, ManpowerGroup announced the world has entered the Human Age, where talent has replaced capital as the key competitive differentiator. This concept of talentism as the new capitalism continues to resonate and was echoed as a core theme of the 2012 Annual Meeting of the World Economic Forum in Davos. Learn more about this new age at www.manpowergroup.com/humanage.
Gain access to ManpowerGroup's extensive thought leadership papers, annual Talent Shortage surveys and the Manpower Employment Outlook Survey, one of the most trusted indices of employment activity in the world, via the ManpowerGroup World of Work Insight iPad application. This thought leadership app explores the challenges faced by employers navigating the changing world of work and provides in-depth commentary, analysis, insight and advice on strategies for success.
Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: twitter.com/manpowergroupjj. Joerres is one of only six Fortune 500 CEOs who leverages a Twitter account to get his message out.
Forward-Looking Statements
This news release contains statements, including earnings projections, that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected future results. The Company's actual results may differ materially from those described or contemplated in the forward-looking statements. Factors that may cause the Company's actual results to differ materially from those contained in the forward-looking statements can be found in the Company's reports filed with the SEC, including the information under the heading 'Risk Factors' in its Annual Report on Form 10-K for the year ended December 31, 2011, which information is incorporated herein by reference.
ManpowerGroup
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2012 2011 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $5,096.4 $5,072.4 0.5% 3.0%
Cost of services 4,249.0 4,214.8 0.8% 3.4%
------- -------
Gross profit 847.4 857.6 -1.2% 1.1%
Selling and
administrative
expenses 753.6 772.0 -2.4% -0.3%
----- -----
Operating profit 93.8 85.6 9.5% 13.9%
Interest and other
expenses 11.8 11.1 5.3%
---- ----
Earnings before
income taxes 82.0 74.5 10.1% 14.7%
Provision for
income taxes 41.8 38.8 7.6%
Net earnings $40.2 $35.7 12.8% 17.5%
===== =====
Net earnings per
share -basic $0.50 $0.44 13.6%
===== =====
Net earnings per
share -diluted $0.50 $0.43 16.3% 20.9%
===== =====
Weighted average
shares -basic 80.2 81.9 -2.0%
==== ====
Weighted average
shares -diluted 80.9 83.6 -3.3%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $5.4
million and $5.9 million for
the three months ended March
31, 2012 and 2011,
respectively. These fees are
primarily based on revenues
generated by the franchise
offices, which were $253.9
million and $274.5 million for
the three months ended March
31, 2012 and 2011,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2012 2011 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $735.8 $750.9 -2.0% -2.0%
Other Americas 402.5 361.8 11.3% 16.1%
1,138.3 1,112.7 2.3% 3.9%
------- -------
Southern Europe:
France 1,291.8 1,353.8 -4.6% -0.4%
Italy 267.5 284.6 -6.0% -1.9%
Other Southern Europe 195.2 180.0 8.5% 13.7%
1,754.5 1,818.4 -3.5% 0.7%
------- -------
Northern Europe 1,444.0 1,456.6 -0.9% 2.6%
APME 680.0 602.9 12.8% 9.8%
Right Management 79.6 81.8 -2.6% -2.0%
$5,096.4 $5,072.4 0.5% 3.0%
======== ========
Operating Unit Profit:
Americas:
United States $6.9 $8.7 -20.8% -20.8%
Other Americas 15.3 12.8 19.7% 26.2%
22.2 21.5 3.4% 7.2%
---- ----
Southern Europe:
France 5.5 12.0 -54.3% -51.4%
Italy 14.5 12.9 12.7% 18.0%
Other Southern Europe 3.5 2.2 56.0% 64.9%
23.5 27.1 -13.4% -8.8%
---- ----
Northern Europe 43.9 41.9 4.8% 8.3%
APME 19.6 16.5 18.5% 16.1%
Right Management 2.5 3.3 -24.6% -24.5%
111.7 110.3
Corporate expenses (26.3) (32.0)
Intangible asset
amortization expense (9.0) (9.6)
Reclassification of
French business tax 17.4 16.9
Operating profit 93.8 85.6 9.5% 13.9%
Interest and other
expenses (b) (11.8) (11.1)
Earnings before income
taxes $82.0 $74.5
===== =====
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $3.2 million and
$2.7 million for the three
months ended March 31, 2012 and
2011, respectively. These fees
are primarily based on revenues
generated by the franchise
offices, which were $164.4
million and $148.5 million for
the three months ended March
31, 2012 and 2011,
respectively.
(b) The components of interest and other expenses were:
2012 2011
---- ----
Interest expense $10.6 $10.2
Interest income (1.8) (1.4)
Foreign exchange (gain) loss (0.2) 0.5
Miscellaneous expenses, net 3.2 1.8
$11.8 $11.1
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2012 2011
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $553.5 $580.5
Accounts
receivable,
net 4,232.7 4,181.3
Prepaid
expenses and
other assets 189.7 176.3
Future income
tax benefits 56.5 52.4
Total current
assets 5,032.4 4,990.5
Other assets:
Goodwill and
other
intangible
assets, net 1,342.9 1,339.6
Other assets 417.1 395.1
Total other
assets 1,760.0 1,734.7
Property and
equipment:
Land,
buildings,
leasehold
improvements
and equipment 710.9 685.6
Less:
accumulated
depreciation
and
amortization 530.0 511.1
Net property
and equipment 180.9 174.5
Total assets $6,973.3 $6,899.7
======== ========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current
liabilities:
Accounts
payable $1,432.2 $1,370.6
Employee
compensation
payable 189.7 221.9
Accrued
liabilities 513.0 520.8
Accrued payroll
taxes and
insurance 649.8 712.4
Value added
taxes payable 488.0 502.3
Short-term
borrowings and
current
maturities of
long-term
debt 454.2 434.2
Total current
liabilities 3,726.9 3,762.2
Other
liabilities:
Long-term debt 267.6 266.0
Other long-
term
liabilities 410.3 388.1
Total other
liabilities 677.9 654.1
Shareholders'
equity:
Common stock 1.1 1.1
Capital in
excess of par
value 2,849.8 2,839.9
Retained
earnings 1,011.9 971.7
Accumulated
other
comprehensive
income 74.8 35.3
Treasury stock,
at cost (1,369.1) (1,364.6)
Total
shareholders'
equity 2,568.5 2,483.4
Total
liabilities
and
shareholders'
equity $6,973.3 $6,899.7
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
March 31
--------
2012 2011
---- ----
(Unaudited)
Cash Flows from Operating
Activities:
Net earnings $40.2 $35.7
Adjustments to reconcile
net earnings to net
cash used in operating
activities:
Depreciation and
amortization 24.3 25.9
Deferred income taxes (0.8) (2.9)
Provision for doubtful
accounts 5.0 5.9
Share-based compensation 6.9 8.2
Excess tax benefit on
exercise of share-based
awards - (0.5)
Changes in operating
assets and liabilities,
excluding
the impact of
acquisitions:
Accounts receivable 34.4 (212.9)
Other assets (16.7) (6.3)
Other liabilities (114.0) (12.8)
Cash used in operating
activities (20.7) (159.7)
----- ------
Cash Flows from Investing
Activities:
Capital expenditures (19.7) (11.2)
Acquisitions of
businesses, net of cash
acquired (1.5) -
Proceeds from sales of
property and equipment 0.1 1.1
Cash used in investing
activities (21.1) (10.1)
----- -----
Cash Flows from Financing
Activities:
Net change in short-term
borrowings 9.5 9.6
Proceeds from long-term
debt 0.1 0.1
Repayments of long-term
debt (8.4) (0.1)
Proceeds from share-based
awards 3.5 5.2
Other share-based award
transactions, net (4.5) 0.5
Cash provided by financing
activities 0.2 15.3
--- ----
Effect of exchange rate
changes on cash 14.6 31.4
Change in cash and cash
equivalents (27.0) (123.1)
Cash and cash equivalents,
beginning of period 580.5 772.6
Cash and cash equivalents,
end of period $553.5 $649.5
====== ======
SOURCE ManpowerGroup
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