MANPOWERGROUP INC. MILWAUKEE, April 21, 2015 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2015 were $65.7 million, or 83 cents per diluted share, compared to net earnings of $70.1 million, or 86 cents per diluted share, a year earlier. Revenues for the first quarter were $4.5 billion, a decrease of 7% from the prior year period.
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Financial results in the quarter were significantly impacted by the stronger US dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased 7% and earnings per share increased 16%. Earnings per share in the quarter were negatively impacted 17 cents by changes in foreign currencies compared to the prior year.
Jonas Prising, ManpowerGroup CEO, said, "2015 is off to a strong start as we built on the progress we made last year delivering good results in the first quarter. It is encouraging to see the early signs of more broad based improvement in Europe, setting the stage for what we believe could be a slow but sustained labor market recovery in that region. The strong start to the year gives us confidence that we are on the right track and that our focus on permanent recruitment and our market leading solutions offerings continues to pay off. We are well placed to seize further opportunities as economic trends improve."
"We anticipate second quarter earnings per share will range between $1.21 to $1.29, which includes an estimated unfavorable currency impact of 29 cents."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 21, 2015 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® (NYSE: MAN) is the world's workforce expert, creating innovative workforce solutions for more than 65 years. As workforce experts, we connect more than 600,000 people to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands - Manpower®, Experis®, Right Management ® and ManpowerGroup® Solutions - we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2015, ManpowerGroup was named one of the World's Most Ethical Companies for the fifth consecutive year and one of Fortune's Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com
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, 2014, 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
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from services (a) $4,542.2 $4,904.0 -7.4% 6.6%
Cost of services 3,780.2 4,087.5 -7.5% 6.6%
------- -------
Gross profit 762.0 816.5 -6.7% 6.7%
Selling and administrative expenses 639.2 689.6 -7.3% 4.9%
----- -----
Operating profit 122.8 126.9 -3.2% 16.5%
Interest and other expenses 10.6 9.2 16.1%
---- ---
Earnings before income taxes 112.2 117.7 -4.7% 14.9%
Provision for income taxes 46.5 47.6 -2.3%
Net earnings $65.7 $70.1 -6.3% 12.8%
===== =====
Net earnings per share - basic $0.83 $0.88 -5.7%
===== =====
Net earnings per share - diluted $0.83 $0.86 -3.5% 16.3%
===== =====
Weighted average shares - basic 78.7 79.8 -1.4%
==== ====
Weighted average shares - diluted 79.6 81.2 -2.0%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $5.5
million for both the three
months ended March 31, 2015 and
2014. These fees are primarily
based on revenues generated by
the franchise offices, which
were $249.9 million and $256.6
million for the three months
ended March 31, 2015 and 2014,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United
States
(a) $725.1 $720.5 0.6% 0.6%
Other
Americas 359.3 350.6 2.5% 16.1%
1,084.4 1,071.1 1.2% 5.7%
------- -------
Southern Europe:
France 1,040.8 1,217.3 -14.5% 4.2%
Italy 270.1 274.7 -1.7% 20.0%
Other
Southern
Europe 226.2 230.0 -1.7% 16.7%
1,537.1 1,722.0 -10.7% 8.4%
------- -------
Northern
Europe 1,323.3 1,463.9 -9.6% 7.6%
APME 533.1 573.7 -7.1% 2.1%
Right
Management 64.3 73.3 -12.2% -4.8%
$4,542.2 $4,904.0 -7.4% 6.6%
======== ========
Operating Unit Profit:
Americas:
United
States $17.4 $13.4 30.0% 30.0%
Other
Americas 12.8 12.6 1.7% 15.0%
30.2 26.0 16.3% 22.7%
---- ----
Southern Europe:
France 50.3 51.2 -1.9% 20.4%
Italy 14.0 12.6 11.1% 36.8%
Other
Southern
Europe 4.7 4.6 4.6% 23.9%
69.0 68.4 0.9% 23.7%
---- ----
Northern
Europe 33.3 38.4 -13.4% 2.0%
APME 18.8 20.2 -7.4% 2.5%
Right
Management 5.6 8.3 -31.8% -26.9%
156.9 161.3
Corporate
expenses (26.7) (26.2)
Intangible
asset
amortization
expense (7.4) (8.2)
Operating
profit 122.8 126.9 -3.2% 16.5%
Interest
and
other
expenses
(b) (10.6) (9.2)
Earnings
before
income
taxes $112.2 $117.7
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $3.4 million for
both the three months ended
March 31, 2015 and 2014. These
fees are primarily based on
revenues generated by the
franchise offices, which were
$168.7 million and $169.1
million for the three months
ended March 31, 2015 and 2014,
respectively.
(b) The components of interest and
other expenses were:
2015 2014
---- ----
Interest expense $8.0 $8.6
Interest income (0.5) (0.9)
Foreign exchange loss (gain) 0.7 (1.2)
Miscellaneous expenses, net 2.4 2.7
$10.6 $9.2
===== ====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2015 2014
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $627.6 $699.2
Accounts
receivable,
net 3,903.0 4,134.5
Prepaid
expenses and
other assets 160.2 147.8
Future income
tax benefits 46.9 52.2
Total current
assets 4,737.7 5,033.7
Other assets:
Goodwill 1,056.8 1,075.2
Intangible
assets, net 276.6 286.8
Other assets 645.8 637.7
Total other
assets 1,979.2 1,999.7
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 590.3 633.5
Less:
accumulated
depreciation
and
amortization 452.1 484.4
Net property
and
equipment 138.2 149.1
Total assets $6,855.1 $7,182.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $1,574.2 $1,542.7
Employee
compensation
payable 149.9 204.5
Accrued
liabilities 480.8 493.3
Accrued
payroll
taxes and
insurance 511.7 622.4
Value added
taxes
payable 399.0 466.3
Short-term
borrowings
and current
maturities
of long-
term debt 45.6 45.2
Total current
liabilities 3,161.2 3,374.4
Other liabilities:
Long-term
debt 376.1 423.9
Other long-
term
liabilities 457.4 441.2
Total other
liabilities 833.5 865.1
Shareholders' equity:
Common stock 1.1 1.1
Capital in
excess of
par value 3,102.9 3,084.2
Retained
earnings 1,733.5 1,667.8
Accumulated
other
comprehensive
loss (274.8) (155.2)
Treasury
stock, at
cost (1,702.3) (1,654.9)
Total
shareholders'
equity 2,860.4 2,943.0
Total
liabilities
and
shareholders'
equity $6,855.1 $7,182.5
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
March 31
--------
2015 2014
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $65.7 $70.1
Adjustments to reconcile net earnings to
net cash provided by (used in) operating
activities:
Depreciation and
amortization 18.7 21.6
Deferred income
taxes 18.2 (1.5)
Provision for
doubtful accounts 5.3 6.6
Share-based
compensation 6.7 10.8
Excess tax benefit
on exercise of
share-based awards (0.2) (2.2)
Changes in operating assets and
liabilities, excluding the impact of
acquisitions:
Accounts receivable (54.3) 27.8
Other assets (68.2) (55.8)
Other liabilities 30.4 (92.9)
Cash provided by
(used in) operating
activities 22.3 (15.5)
---- -----
Cash Flows from Investing Activities:
Capital expenditures (9.9) (8.3)
Acquisitions of
businesses, net of
cash acquired (10.1) (9.4)
Proceeds from sales
of property and
equipment 0.3 -
Cash used in
investing
activities (19.7) (17.7)
----- -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings 3.4 13.3
Proceeds from long-
term debt 0.1 -
Repayments of long-
term debt (1.2) (0.6)
Proceeds from share-
based awards 12.2 6.0
Other share-based
award transactions,
net (7.6) (8.2)
Repurchases of
common stock (39.6) (16.7)
Cash used in
financing
activities (32.7) (6.2)
----- ----
Effect of exchange
rate changes on
cash (41.5) (1.7)
Change in cash and
cash equivalents (71.6) (41.1)
Cash and cash
equivalents,
beginning of period 699.2 737.6
Cash and cash
equivalents, end of
period $627.6 $696.5
====== ======
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SOURCE ManpowerGroup
