MANPOWERGROUP INC. MILWAUKEE, July 21, 2015 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings per diluted share for the three months ended June 30, 2015 were $1.33 compared to $1.35 in the prior year period. Net earnings in the second quarter were $105.7 million compared to $109.8 million a year earlier. Revenues for the second quarter were $4.9 billion, a decrease of 9 percent from the prior year period.
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Financial results in the quarter were significantly impacted by the stronger U.S. 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 23 cents by changes in the foreign currencies compared to the prior year.
ManpowerGroup CEO Jonas Prising, said, "We are pleased with our strong second quarter results, capping off a good first half of 2015. The labor markets continue to improve across the globe, although at a slow and uneven pace in some countries.
"It is rewarding for our team to experience solid growth in a number of our geographies, with very strong growth in Italy, Mexico, Spain and the UK. With our market leading brands and solutions we are well placed to take advantage of profitable growth opportunities also in the second half of the year.
"We are anticipating the third quarter of 2015 diluted earnings per share to be in the range of $1.50 to $1.58, which includes an estimated unfavorable currency impact of 24 cents," Prising stated.
Net earnings per diluted share for the six months ended June 30, 2015 were $2.16 compared to $2.21 in 2014. Net earnings for the period were $171.4 million compared to $179.9 million in the prior year. Revenues for the six-month period were $9.4 billion, a decrease of 8 percent from the prior year or an increase of 7 percent in constant currency. Foreign currency exchange rates had an unfavorable impact of 39 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, 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.
About ManpowerGroup(TM)
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 June 30
--------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $4,861.3 $5,321.7 -8.7% 6.6%
Cost of services 4,030.7 4,424.4 -8.9% 6.6%
------- -------
Gross profit 830.6 897.3 -7.4% 6.7%
Selling and
administrative
expenses 651.9 709.9 -8.2% 5.2%
----- -----
Operating profit 178.7 187.4 -4.7% 12.5%
Interest and other
expenses 7.2 7.9 -9.2%
--- ---
Earnings before
income taxes 171.5 179.5 -4.5% 12.3%
Provision for income
taxes 65.8 69.7 -5.8%
Net earnings $105.7 $109.8 -3.7% 12.6%
====== ======
Net earnings per
share -basic $1.35 $1.37 -1.5%
===== =====
Net earnings per
share -diluted $1.33 $1.35 -1.5% 15.6%
===== =====
Weighted average
shares -basic 78.3 79.9 -1.9%
==== ====
Weighted average
shares -diluted 79.3 81.4 -2.5%
==== ====
(a) Revenues from services
include fees received from our
franchise offices of $6.0
million and $6.4 million for
the three months ended June 30,
2015 and 2014, respectively.
These fees are primarily based
on revenues generated by the
franchise offices, which were
$276.3 million and $286.6
million for the three months
ended
June 30, 2015 and 2014,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended June 30
--------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $762.6 $775.9 -1.7% -1.7%
Other Americas 368.1 375.2 -1.9% 14.4%
1,130.7 1,151.1 -1.8% 3.5%
------- -------
Southern Europe:
France 1,202.6 1,412.1 -14.8% 5.5%
Italy 319.3 313.9 1.7% 25.9%
Other Southern Europe 244.3 243.0 0.6% 20.9%
1,766.2 1,969.0 -10.3% 10.6%
------- -------
Northern Europe 1,335.6 1,527.8 -12.6% 4.5%
APME 556.6 594.0 -6.3% 5.7%
Right Management 72.2 79.8 -9.6% -1.5%
$4,861.3 $5,321.7 -8.7% 6.6%
======== ========
Operating Unit Profit:
Americas:
United States $41.7 $29.7 40.3% 40.3%
Other Americas 14.5 14.0 3.3% 19.7%
56.2 43.7 28.5% 33.7%
---- ----
Southern Europe:
France 66.9 71.9 -6.9% 15.4%
Italy 19.8 18.3 8.0% 33.7%
Other Southern Europe 6.3 5.7 9.0% 29.7%
93.0 95.9 -3.1% 19.8%
---- ----
Northern Europe 35.8 46.2 -22.5% -9.9%
APME 18.5 21.0 -11.4% -0.9%
Right Management 11.7 12.7 -8.5% -4.0%
215.2 219.5
Corporate expenses (28.9) (23.7)
Intangible asset
amortization expense (7.6) (8.4)
Operating profit 178.7 187.4 -4.7% 12.5%
Interest and other
expenses (b) (7.2) (7.9)
Earnings before income
taxes $171.5 $179.5
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $3.9 million for both the three
months ended June 30, 2015 and 2014. These fees are primarily based on revenues generated by the franchise offices, which were
$184.6 million and $190.3 million for the three months ended June 30, 2015 and 2014, respectively.
(b) The components of interest and other expenses were:
2015 2014
---- ----
Interest expense $8.2 $9.3
Interest income (0.7) (1.1)
Foreign exchange gain - (0.9)
Miscellaneous (income)
expense, net (0.3) 0.6
$7.2 $7.9
==== ====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $9,403.5 $10,225.7 -8.0% 6.6%
Cost of services 7,810.9 8,511.9 -8.2% 6.6%
------- -------
Gross profit 1,592.6 1,713.8 -7.1% 6.7%
Selling and
administrative
expenses 1,291.1 1,399.5 -7.7% 5.1%
------- -------
Operating profit 301.5 314.3 -4.1% 14.1%
Interest and other
expenses 17.8 17.1 4.4%
---- ----
Earnings before
income taxes 283.7 297.2 -4.6% 13.3%
Provision for income
taxes 112.3 117.3 -4.4%
Net earnings $171.4 $179.9 -4.7% 12.7%
====== ======
Net earnings per
share -basic $2.18 $2.25 -3.1%
===== =====
Net earnings per
share -diluted $2.16 $2.21 -2.3% 15.4%
===== =====
Weighted average
shares -basic 78.5 79.9 -1.7%
==== ====
Weighted average
shares -diluted 79.5 81.4 -2.3%
==== ====
(a) Revenues from services
include fees received from our
franchise offices of $11.5
million and $11.9 million for
the six months ended June 30,
2015 and 2014, respectively.
These fees are primarily based
on revenues
generated by the franchise
offices, which were $526.2
million and $543.2 million for
the six months ended
June 30, 2015 and 2014,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $1,487.7 $1,496.4 -0.6% -0.6%
Other Americas 727.4 725.8 0.2% 15.2%
2,215.1 2,222.2 -0.3% 4.6%
------- -------
Southern Europe:
France 2,243.4 2,629.4 -14.7% 4.9%
Italy 589.4 588.6 0.1% 23.2%
Other Southern Europe 470.5 473.0 -0.5% 18.8%
3,303.3 3,691.0 -10.5% 9.6%
------- -------
Northern Europe 2,658.9 2,991.7 -11.1% 6.0%
APME 1,089.7 1,167.7 -6.7% 3.9%
Right Management 136.5 153.1 -10.8% -3.1%
$9,403.5 $10,225.7 -8.0% 6.6%
======== =========
Operating Unit Profit:
Americas:
United States $59.1 $43.1 37.1% 37.1%
Other Americas 27.3 26.6 2.5% 17.5%
86.4 69.7 23.9% 29.6%
---- ----
Southern Europe:
France 117.2 123.1 -4.8% 17.5%
Italy 33.8 30.9 9.3% 34.9%
Other Southern Europe 11.0 10.3 7.1% 27.1%
162.0 164.3 -1.4% 21.4%
----- -----
Northern Europe 69.1 84.6 -18.4% -4.5%
APME 37.3 41.2 -9.4% 0.8%
Right Management 17.3 21.0 -17.6% -13.0%
372.1 380.8
Corporate expenses (55.6) (49.9)
Intangible asset
amortization expense (15.0) (16.6)
Operating profit 301.5 314.3 -4.1% 14.1%
Interest and other
expenses (b) (17.8) (17.1)
Earnings before income
taxes $283.7 $297.2
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $7.3 million for both the six
months ended June 30, 2015 and 2014. These fees are primarily based on revenues generated by the franchise offices, which were $353.3
million and $359.4 million for the six months ended June 30, 2015 and 2014, respectively.
(b) The components of interest and other expenses were:
2015 2014
---- ----
Interest expense $16.2 $17.9
Interest income (1.2) (2.0)
Foreign exchange loss
(gain) 0.7 (2.1)
Miscellaneous
expenses, net 2.1 3.3
$17.8 $17.1
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Jun. 30 Dec. 31
2015 2014
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $465.9 $699.2
Accounts
receivable,
net 4,214.2 4,134.5
Prepaid
expenses and
other assets 261.5 147.8
Future income
tax benefits 51.2 52.2
Total current
assets 4,992.8 5,033.7
Other assets:
Goodwill 1,083.6 1,075.2
Intangible
assets, net 275.0 286.8
Other assets 581.7 637.7
Total other
assets 1,940.3 1,999.7
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 605.9 633.5
Less:
accumulated
depreciation
and
amortization 466.3 484.4
Net property
and
equipment 139.6 149.1
Total assets $7,072.7 $7,182.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $1,623.4 $1,542.7
Employee
compensation
payable 175.9 204.5
Accrued
liabilities 494.2 493.3
Accrued
payroll
taxes and
insurance 583.1 622.4
Value added
taxes
payable 447.6 466.3
Short-term
borrowings
and current
maturities
of long-
term debt 39.5 45.2
Total current
liabilities 3,363.7 3,374.4
Other liabilities:
Long-term
debt 390.7 423.9
Other long-
term
liabilities 460.3 441.2
Total other
liabilities 851.0 865.1
Shareholders' equity:
Common stock 1.1 1.1
Capital in
excess of
par value 3,128.3 3,084.2
Retained
earnings 1,777.1 1,667.8
Accumulated
other
comprehensive
loss (217.7) (155.2)
Treasury
stock, at
cost (1,830.8) (1,654.9)
Total
shareholders'
equity 2,858.0 2,943.0
Total
liabilities
and
shareholders'
equity $7,072.7 $7,182.5
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Six Months Ended
June 30
-------
2015 2014
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $171.4 $179.9
Adjustments to reconcile net earnings to
net cash provided by (used in) operating
activities:
Depreciation and
amortization 37.6 43.2
Deferred income
taxes 45.5 5.0
Provision for
doubtful accounts 9.0 10.3
Share-based
compensation 14.8 23.9
Excess tax benefit
on exercise of
share-based
awards (0.8) (2.9)
Changes in operating assets and
liabilities, excluding the impact of
acquisitions:
Accounts receivable (280.1) (223.6)
Other assets (94.0) (99.1)
Other liabilities 135.4 47.3
Cash provided by
(used in)
operating
activities 38.8 (16.0)
---- -----
Cash Flows from Investing Activities:
Capital
expenditures (20.1) (20.6)
Acquisitions of
businesses, net of
cash acquired (30.4) (23.7)
Proceeds from sales
of property and
equipment 3.5 0.3
Cash used in
investing
activities (47.0) (44.0)
----- -----
Cash Flows from Financing Activities:
Net change in
short-term
borrowings (1.8) 15.9
Proceeds from long-
term debt 0.1 -
Repayments of long-
term debt (1.5) (1.2)
Proceeds from
share-based
awards 29.1 18.9
Other share-based
award
transactions, net (6.3) (6.1)
Repurchases of
common stock (168.7) (16.7)
Dividends paid (62.1) (39.0)
Cash used in
financing
activities (211.2) (28.2)
------ -----
Effect of exchange
rate changes on
cash (13.9) (10.9)
Change in cash and
cash equivalents (233.3) (99.1)
Cash and cash
equivalents,
beginning of
period 699.2 737.6
Cash and cash
equivalents, end
of period $465.9 $638.5
====== ======
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SOURCE ManpowerGroup
