MANPOWERGROUP INC. 
By MILWAUKEE, April 23, 2014 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2014 were $70.1 million, or 86 cents per diluted share, compared to net earnings of $23.9 million, or 31 cents per diluted share, a year earlier. Revenues for the first quarter were $4.9 billion, an increase of 3% from the prior year period.
Included in the prior year first quarter results is a restructuring charge, primarily related to office consolidations and severance costs of $34.8 million ($25.3 million after tax or 32 cents per diluted share). There were no restructuring charges in the current year quarter. Net earnings in the first quarter were negatively impacted by 1 cent per diluted share, as certain foreign currencies were slightly weaker compared to the prior year period.
Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "Despite the slow start in January, we are experiencing more positive revenue trends as we enter the second quarter in almost all of the major geographies. Growth in our Europe business improved to over 4 percent in constant currency in the quarter, and exceeded 3 percent on an average daily basis.
"The work that our team did last year to simplify and re-calibrate our company is paying off as we were able to achieve strong flow through and operational leverage.
"We anticipate second quarter earnings per share will range between $1.26 to $1.34, which includes an estimated favorable currency impact of 2 cents."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 23, 2014 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 in the section titled "Investor Relations."
Supplemental financial information referenced in the conference call can be found at http://www.manpowergroup.com in the section titled "Investor Relations."
About ManpowerGroup
ManpowerGroup(TM) (NYSE: MAN) is the world leader in innovative workforce solutions that ensure the talent sustainability of the world's workforce for the good of companies, communities, countries, and individuals themselves. Specializing in solutions that help organizations achieve business agility and workforce flexibility, ManpowerGroup leverages its 65 years of world of work expertise to create the work models, design the people practices and access the talent sources its clients need for the future. From staffing, recruitment, workforce consulting, outsourcing and career management to assessment, training and development, ManpowerGroup delivers the talent to drive the innovation and productivity of organizations in a world where talentism is the dominant economic system. Every day, ManpowerGroup connects more than 600,000 people to work and builds their experience and employability through its relationships with 400,000 clients across 80 countries and territories. ManpowerGroup's suite of solutions is offered through ManpowerGroup(TM) Solutions, Manpower®, Experis(TM) and Right Management®. ManpowerGroup was named one of the World's Most Ethical Companies for the fourth consecutive year in 2014, confirming our position as the most trusted brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible at www.manpowergroup.com. Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: Twitter.com/manpowergroupjj
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, 2013, 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
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues
from
services
(a) $4,904.0 $4,768.9 2.8% 3.0%
Cost of
services 4,087.5 3,978.8 2.7% 2.9%
------- -------
Gross
profit 816.5 790.1 3.3% 3.6%
Selling
and
administrative
expenses 689.6 735.7 -6.3% -6.1%
----- -----
Operating
profit 126.9 54.4 133.4% 134.6%
Interest
and
other
expenses 9.2 11.5 -19.7%
--- ----
Earnings
before
income
taxes 117.7 42.9 174.3% 175.5%
Provision
for
income
taxes 47.6 19.0 150.6%
Net
earnings $70.1 $23.9 193.2% 196.5%
===== =====
Net
earnings
per
share -
basic $0.88 $0.31 183.9%
===== =====
Net
earnings
per
share -
diluted $0.86 $0.31 177.4% 180.6%
===== =====
Weighted
average
shares -
basic 79.8 77.1 3.5%
==== ====
Weighted
average
shares -
diluted 81.2 78.2 3.8%
==== ====
(a) Revenues from
services
include fees
received from
our franchise
offices of $5.5
million and
$5.3 million
for the three
months ended
March 31, 2014
and 2013,
respectively.
These fees are
primarily based
on revenues
generated by
the franchise
offices, which
were $256.6
million and
$234.7 million
for the three
months ended
March 31, 2014
and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United
States
(b) $720.5 $706.1 2.1% 2.1%
Other
Americas 350.6 386.9 -9.4% 3.6%
1,071.1 1,093.0 -2.0% 2.6%
------- -------
Southern Europe:
France 1,217.3 1,145.2 6.3% 2.3%
Italy 274.7 257.9 6.5% 2.5%
Other
Southern
Europe 230.0 193.4 18.9% 14.7%
1,722.0 1,596.5 7.9% 3.8%
------- -------
Northern
Europe 1,463.9 1,370.3 6.8% 4.6%
APME 573.7 632.5 -9.3% -1.1%
Right
Management 73.3 76.6 -4.3% -4.0%
$4,904.0 $4,768.9 2.8% 3.0%
======== ========
Operating Unit Profit:
(a)
Americas:
United
States $13.4 $7.4 81.2% 81.2%
Other
Americas 12.6 8.7 43.8% 64.6%
26.0 16.1 61.0% 72.2%
---- ----
Southern Europe:
France 51.2 29.7 72.0% 65.0%
Italy 12.6 11.7 7.8% 3.4%
Other
Southern
Europe 4.6 2.3 97.5% 90.0%
68.4 43.7 56.2% 49.9%
---- ----
Northern
Europe 38.4 10.6 261.4% 256.7%
APME 20.2 14.8 38.1% 52.4%
Right
Management 8.3 2.0 305.7% 303.8%
161.3 87.2
Corporate
expenses (26.2) (24.4)
Intangible
asset
amortization
expense (8.2) (8.4)
Operating
profit 126.9 54.4 133.4% 134.6%
Interest
and
other
expenses
(c) (9.2) (11.5)
Earnings
before
income
taxes $117.7 $42.9
====== =====
(a) On a
consolidated
basis,
the
French
business
tax is
reported
in
provision
for
income
taxes, in
accordance
with the
current
accounting
guidance
on income
taxes.
Prior to
the
second
quarter
of 2013,
we
internally
reviewed
the
financial
results
of our
French
operations
including
the
French
business
tax
within
OUP given
the
operational
nature of
these
taxes.
While we
continue
to view
this tax
as
operational,
during
the
second
quarter
of 2013
we
changed
our
internal
reporting
to
exclude
the
French
business
tax from
the OUP
of our
France
reportable
segment.
Therefore,
we are no
longer
required
to show
the
business
tax
amount
separately
to
reconcile
to the
consolidated
results.
All
previously
reported
segment
results
have been
restated
to
conform
to the
current
year
presentation.
This
change in
segment
reporting
has no
impact on
our
reporting
of
consolidated
results.
(b) In the
United
States,
revenues
from
services
include
fees
received
from our
franchise
offices
of $3.4
million
and $3.2
million
for the
three
months
ended
March 31,
2014 and
2013,
respectively.
These
fees are
primarily
based on
revenues
generated
by the
franchise
offices,
which
were
$169.1
million
and
$155.1
million
for the
three
months
ended
March 31,
2014 and
2013,
respectively.
(c) The components of
interest and other
expenses were:
2014 2013
---- ----
Interest expense $8.6 $10.7
Interest income (0.9) (0.9)
Foreign exchange (gain)
loss (1.2) 0.4
Miscellaneous expenses, net 2.7 1.3
$9.2 $11.5
==== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2014 2013
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $696.5 $737.6
Accounts receivable, net 4,244.1 4,277.9
Prepaid expenses and other
assets 142.8 161.3
Future income tax benefits 67.2 66.2
Total current assets 5,150.6 5,243.0
Other assets:
Goodwill and other
intangible assets, net 1,411.4 1,400.0
Other assets 557.2 479.3
Total other assets 1,968.6 1,879.3
Property and equipment:
Land, buildings, leasehold
improvements and
equipment 709.5 706.2
Less: accumulated
depreciation and
amortization 548.7 540.2
Net property and equipment 160.8 166.0
Total assets $7,280.0 $7,288.3
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,579.0 $1,523.9
Employee compensation
payable 184.3 230.4
Accrued liabilities 561.3 536.1
Accrued payroll taxes and
insurance 578.0 680.7
Value added taxes payable 476.4 502.5
Short-term borrowings and
current maturities of
long-term debt 45.4 36.0
Total current liabilities 3,424.4 3,509.6
Other liabilities:
Long-term debt 484.3 481.9
Other long-term
liabilities 395.5 382.6
Total other liabilities 879.8 864.5
Shareholders' equity:
Common stock 1.1 1.1
Capital in excess of par
value 3,032.6 3,014.0
Retained earnings 1,387.6 1,317.5
Accumulated other
comprehensive income 82.1 82.2
Treasury stock, at cost (1,527.6) (1,500.6)
Total shareholders' equity 2,975.8 2,914.2
Total liabilities and
shareholders' equity $7,280.0 $7,288.3
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Three
Months
Ended
March 31
--------
2014 2013
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $70.1 $23.9
Adjustments to reconcile net earnings to
net
cash provided by operating activities:
Depreciation and
amortization 21.6 24.2
Deferred income taxes (1.5) 2.7
Provision for doubtful
accounts 6.6 5.9
Share-based compensation 10.8 6.5
Excess tax benefit on
exercise of share-based
awards (2.2) (0.3)
Changes in operating assets and
liabilities, excluding
the impact of acquisitions:
Accounts receivable 27.8 20.2
Other assets (55.8) (17.1)
Other liabilities (92.9) (128.3)
Cash used in operating
activities (15.5) (62.3)
----- -----
Cash Flows from Investing Activities:
Capital expenditures (8.3) (12.8)
Acquisitions of businesses,
net of cash acquired (9.4) -
Proceeds from sales of
property and equipment - 0.6
Cash used in investing
activities (17.7) (12.2)
----- -----
Cash Flows from Financing Activities:
Net change in short-term
borrowings 13.3 2.2
Repayments of long-term
debt (0.6) (0.3)
Proceeds from share-based
awards 6.0 10.2
Other share-based award
transactions, net (8.2) 1.0
Repurchases of common stock (16.7) -
Cash (used in) provided by
financing activities (6.2) 13.1
---- ----
Effect of exchange rate
changes on cash (1.7) (3.3)
Change in cash and cash
equivalents (41.1) (64.7)
Cash and cash equivalents,
beginning of period 737.6 648.1
Cash and cash equivalents,
end of period $696.5 $583.4
====== ======
http://photos.prnewswire.com/prnvar/20110330/CG73938LOGO-a
Logo - http://photos.prnewswire.com/prnh/20110330/CG73938LOGO-a
SOURCE ManpowerGroup
