MANPOWERGROUP INC. MILWAUKEE, July 21, 2014 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings per diluted share for the three months ended June 30, 2014 were $1.35 compared to 87 cents in the prior year period. Net earnings in the second quarter were $109.8 million compared to $68.2 million a year earlier. Revenues for the second quarter were $5.3 billion, an increase of 6 percent from the year earlier period in U.S. dollars and 4 percent in constant currency.
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Included in the prior year second quarter results is a restructuring charge, primarily related to office consolidations and severance costs, of $20.0 million ($14.4 million after tax or 18 cents per diluted share). There were no restructuring charges in the current year quarter. Net earnings in the second quarter were favorably impacted by 3 cents per diluted share, as foreign currencies were relatively stronger compared to the prior year period.
ManpowerGroup CEO Jonas Prising, said, "In the second quarter, we saw our revenue growth improve in a number of major operations including the U.S., U.K. and Italy. This combined with our continued focus on efficiency and productivity, has resulted in good operational leverage and healthy earnings growth."
"We are anticipating the third quarter of 2014 diluted earnings per share to be in the range of $1.46 to $1.54, which includes an estimated favorable currency impact of 2 cents," Prising stated.
Earnings per diluted share for the six months ended June 30, 2014 were $2.21 compared to $1.17 per diluted share in 2013. Net earnings for the period were $179.9 million compared to $92.1 million in the prior year. Revenues for the six-month period were $10.2 billion, an increase of 4 percent from the prior year or an increase of 3 percent in constant currency. Earnings per diluted share for the prior year six month period include restructuring charges of 51 cents per diluted share. Foreign currency exchange rates had a favorable impact of 2 cents for the six-month period.
In conjunction with its second quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on July 21, 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.
About ManpowerGroup(TM)
ManpowerGroup(TM) (NYSE: MAN) has been the world's workforce expert, creating innovative workforce solutions, for more than 65 years. As workforce experts, we connect more than 600,000 men and women to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands -- Manpower®, Experis(TM), Right Management® and ManpowerGroup(TM) 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 2014, ManpowerGroup was named one of the World's Most Ethical Companies for the fourth 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. These statements are based on management's current expectations or beliefs, and are subject to known and unknown 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. Any forward-looking statement in this release speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.
ManpowerGroup
Results of Operations
(In millions, except per share data)
Three Months Ended June 30
--------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $5,321.7 $5,040.7 5.6% 3.7%
Cost of services 4,424.4 4,204.3 5.2% 3.3%
------- -------
Gross profit 897.3 836.4 7.3% 5.6%
Selling and
administrative
expenses 709.9 708.3 0.2% -1.2%
----- -----
Operating profit 187.4 128.1 46.3% 43.2%
Interest and other
expenses 7.9 10.3 -24.0%
--- ----
Earnings before
income taxes 179.5 117.8 52.5% 48.7%
Provision for income
taxes 69.7 49.6 40.8%
Net earnings $109.8 $68.2 61.0% 57.4%
====== =====
Net earnings per
share -basic $1.37 $0.88 55.7%
===== =====
Net earnings per
share -diluted $1.35 $0.87 55.2% 51.7%
===== =====
Weighted average
shares -basic 79.9 77.4 3.2%
==== ====
Weighted average
shares -diluted 81.4 78.6 3.5%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $6.4
million and $6.1 million for
the three months ended June 30,
2014 and 2013, respectively.
These fees are primarily based
on revenues generated by the
franchise offices, which were
$286.6 million and $272.3
million for the three months
ended June 30, 2014 and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended June 30
--------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United
States
(a) $775.9 $748.5 3.7% 3.7%
Other
Americas 375.2 387.2 -3.1% 7.7%
1,151.1 1,135.7 1.4% 5.0%
------- -------
Southern Europe:
France 1,412.1 1,320.6 6.9% 1.9%
Italy 313.9 278.4 12.8% 7.5%
Other
Southern
Europe 243.0 203.0 19.7% 14.9%
1,969.0 1,802.0 9.3% 4.2%
------- -------
Northern
Europe 1,527.8 1,398.8 9.2% 4.6%
APME 594.0 623.3 -4.7% -1.8%
Right
Management 79.8 80.9 -1.4% -2.7%
$5,321.7 $5,040.7 5.6% 3.7%
======== ========
Operating Unit Profit:
Americas:
United
States $29.7 $30.6 -2.9% -2.9%
Other
Americas 14.0 11.9 18.3% 29.2%
43.7 42.5 3.0% 6.0%
---- ----
Southern Europe:
France 71.9 40.9 75.9% 67.9%
Italy 18.3 14.7 24.9% 19.1%
Other
Southern
Europe 5.7 1.2 379.2% 361.7%
95.9 56.8 69.2% 61.5%
---- ----
Northern
Europe 46.2 33.2 39.3% 34.4%
APME 21.0 20.2 2.9% 5.9%
Right
Management 12.7 7.4 72.3% 72.4%
219.5 160.1
Corporate
expenses (23.7) (23.6)
Intangible
asset
amortization
expense (8.4) (8.4)
Operating
profit 187.4 128.1 46.3% 43.2%
Interest
and
other
expenses
(b) (7.9) (10.3)
Earnings
before
income
taxes $179.5 $117.8
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $3.9 million and
$3.8 million for the three
months ended June 30, 2014 and
2013, respectively. These fees
are primarily based on revenues
generated by the franchise
offices, which were $190.3
million and $175.3 million for
the three months ended June 30,
2014 and 2013, respectively.
(b) The components of interest and
other expenses were:
2014 2013
---- ----
Interest expense $9.3 $10.3
Interest income (1.1) (0.9)
Foreign exchange (gain) loss (0.9) 1.4
Miscellaneous expense (income), net 0.6 (0.5)
$7.9 $10.3
==== =====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $10,225.7 $9,809.6 4.2% 3.3%
Cost of services 8,511.9 8,183.1 4.0% 3.1%
------- -------
Gross profit 1,713.8 1,626.5 5.4% 4.6%
Selling and
administrative
expenses 1,399.5 1,444.0 -3.1% -3.7%
------- -------
Operating profit 314.3 182.5 72.3% 70.5%
Interest and other
expenses 17.1 21.8 -21.7%
---- ----
Earnings before
income taxes 297.2 160.7 85.0% 82.6%
Provision for income
taxes 117.3 68.6 71.2%
Net earnings $179.9 $92.1 95.3% 93.5%
====== =====
Net earnings per
share -basic $2.25 $1.19 89.1%
===== =====
Net earnings per
share -diluted $2.21 $1.17 88.9% 87.2%
===== =====
Weighted average
shares -basic 79.9 77.3 3.4%
==== ====
Weighted average
shares -diluted 81.4 78.6 3.6%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $11.9
million and $11.4 million for
the six months ended June 30,
2014 and 2013, respectively.
These fees are primarily based
on revenues generated by the
franchise offices, which were
$543.2 million and $507.0
million for the six months
ended June 30, 2014 and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $1,496.4 $1,454.6 2.9% 2.9%
Other Americas 725.8 774.1 -6.3% 5.7%
2,222.2 2,228.7 -0.3% 3.8%
------- -------
Southern Europe:
France 2,629.4 2,465.8 6.6% 2.1%
Italy 588.6 536.3 9.8% 5.1%
Other Southern
Europe 473.0 396.4 19.3% 14.8%
3,691.0 3,398.5 8.6% 4.0%
------- -------
Northern Europe 2,991.7 2,769.1 8.0% 4.6%
APME 1,167.7 1,255.8 -7.0% -1.5%
Right Management 153.1 157.5 -2.8% -3.4%
$10,225.7 $9,809.6 4.2% 3.3%
========= ========
Operating Unit Profit:
Americas:
United States $43.1 $38.0 13.5% 13.5%
Other Americas 26.6 20.6 29.2% 44.2%
69.7 58.6 19.0% 24.3%
---- ----
Southern Europe:
France 123.1 70.6 74.3% 66.7%
Italy 30.9 26.4 17.3% 12.1%
Other Southern
Europe 10.3 3.5 194.0% 183.1%
164.3 100.5 63.5% 56.4%
----- -----
Northern Europe 84.6 43.8 93.2% 88.4%
APME 41.2 35.0 17.7% 25.4%
Right Management 21.0 9.4 122.6% 122.3%
380.8 247.3
Corporate expenses (49.9) (48.0)
Intangible asset
amortization
expense (16.6) (16.8)
Operating profit 314.3 182.5 72.3% 70.5%
Interest and other
expenses (b) (17.1) (21.8)
Earnings before
income taxes $297.2 $160.7
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $7.3 million and
$7.0 million for the six months
ended June 30, 2014 and 2013,
respectively. These fees are
primarily based on revenues
generated by the franchise
offices, which were $359.4
million and $330.4 million for
the six months ended June 30,
2014 and 2013, respectively.
(b) The components of interest and
other expenses were:
2014 2013
---- ----
Interest expense $17.9 $21.0
Interest income (2.0) (1.8)
Foreign exchange (gain) loss (2.1) 1.8
Miscellaneous expenses, net 3.3 0.8
$17.1 $21.8
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Jun. 30 Dec. 31
2014 2013
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $638.5 $737.6
Accounts
receivable,
net 4,501.0 4,277.9
Prepaid
expenses and
other assets 132.6 161.3
Future income
tax benefits 53.2 66.2
Total current
assets 5,325.3 5,243.0
Other assets:
Goodwill and
other
intangible
assets, net 1,434.1 1,400.0
Other assets 613.6 479.3
Total other
assets 2,047.7 1,879.3
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 716.8 706.2
Less:
accumulated
depreciation
and
amortization 556.0 540.2
Net property
and
equipment 160.8 166.0
Total assets $7,533.8 $7,288.3
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $1,680.2 $1,523.9
Employee
compensation
payable 193.6 230.4
Accrued
liabilities 505.5 536.1
Accrued
payroll
taxes and
insurance 630.6 680.7
Value added
taxes
payable 504.2 502.5
Short-term
borrowings
and current
maturities
of long-
term debt 47.5 36.0
Total current
liabilities 3,561.6 3,509.6
Other liabilities:
Long-term
debt 481.4 481.9
Other long-
term
liabilities 408.4 382.6
Total other
liabilities 889.8 864.5
Shareholders' equity:
Common stock 1.1 1.1
Capital in
excess of
par value 3,059.0 3,014.0
Retained
earnings 1,458.4 1,317.5
Accumulated
other
comprehensive
income 90.2 82.2
Treasury
stock, at
cost (1,526.3) (1,500.6)
Total
shareholders'
equity 3,082.4 2,914.2
Total
liabilities
and
shareholders'
equity $7,533.8 $7,288.3
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Six Months Ended
June 30
-------
2014 2013
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $179.9 $92.1
Adjustments to reconcile net earnings to
net cash used in operating activities:
Depreciation and
amortization 43.2 48.0
Deferred income
taxes 5.0 3.3
Provision for
doubtful accounts 10.3 13.5
Share-based
compensation 23.9 14.8
Excess tax benefit
on exercise of
share-based awards (2.9) (0.5)
Changes in operating assets and
liabilities, excluding
the impact of acquisitions:
Accounts receivable (223.6) (119.0)
Other assets (99.1) (61.1)
Other liabilities 47.3 (62.7)
Cash used in
operating
activities (16.0) (71.6)
----- -----
Cash Flows from Investing Activities:
Capital expenditures (20.6) (25.1)
Acquisitions of
businesses, net of
cash acquired (23.7) (16.9)
Proceeds from sales
of property and
equipment 0.3 1.7
Cash used in
investing
activities (44.0) (40.3)
----- -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings 15.9 37.6
Proceeds from long-
term debt - 0.1
Repayments of long-
term debt (1.2) (267.5)
Proceeds from share-
based awards 18.9 15.0
Other share-based
award transactions,
net (6.1) 3.0
Repurchases of
common stock (16.7) -
Dividends paid (39.0) (35.5)
Cash used in
financing
activities (28.2) (247.3)
----- ------
Effect of exchange
rate changes on
cash (10.9) (8.0)
Change in cash and
cash equivalents (99.1) (367.2)
Cash and cash
equivalents,
beginning of period 737.6 648.1
Cash and cash
equivalents, end of
period $638.5 $280.9
====== ======
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SOURCE ManpowerGroup
