MANPOWERGROUP INC. MILWAUKEE, Oct. 21, 2014 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that earnings per diluted share for the three months ended September 30, 2014 were $1.61 compared to $1.18 in the prior year period. Net earnings in the quarter were $130.5 million compared to $94.7 million a year earlier. Revenues for the third quarter were $5.4 billion, an increase of 4 percent from the year earlier period in U.S. dollars and 5 percent in constant currency.
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Included in the prior year third quarter results is a restructuring charge, primarily related to office consolidations and severance costs, of $8.1 million ($6.2 million after tax or 8 cents per diluted share). There were no restructuring charges in the current year quarter. Net earnings in the third quarter were not materially impacted by changes in foreign currencies compared to the prior year period.
Jonas Prising, ManpowerGroup CEO, said, "Our third quarter results were strong, with solid revenue and profit growth in the majority of our operations and brands. While the economic recovery has recently become more choppy in some markets, we are still seeing growth opportunities and I am confident we are well positioned to deliver unique value to our clients in these uncertain times.
"We are anticipating the fourth quarter of 2014 diluted earnings per share to be in the range of $1.39 to $1.47, which includes an estimated unfavorable currency impact of 8 cents," Prising stated.
Earnings per diluted share for the nine months ended September 30, 2014 were $3.82 compared to $2.36 per diluted share in 2013. Net earnings were $310.4 million compared to $186.8 million in the prior year. Revenues for the nine-month period were $15.6 billion, an increase of 4 percent from the prior year in reported U.S. dollars and in constant currency. Included in the prior year results for the nine month period are restructuring costs of 58 cents per diluted share. Foreign currency exchange rates had a favorable impact of 3 cents per share for the nine month period in 2014.
In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 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/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) has been the world's workforce expert for more than 65 years. We source, assess, develop and manage talent across a wide range of skills and industries. Our ManpowerGroup family of brands -- Experis(TM), Manpower®, ManpowerGroup(TM) Solutions, and Right Management ® -- helps 400,000 clients in 80 countries and territories improve workforce performance, while connecting more than 600,000 individuals to meaningful work. 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. 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 September 30
-------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $5,416.0 $5,188.8 4.4% 4.6%
Cost of services 4,510.4 4,335.2 4.0% 4.3%
------- -------
Gross profit 905.6 853.6 6.1% 6.5%
Selling and
administrative
expenses 693.3 691.2 0.3% 0.8%
----- -----
Operating profit 212.3 162.4 30.7% 30.6%
Interest and other
expenses 9.9 5.4 81.9%
--- ---
Earnings before
income taxes 202.4 157.0 28.9% 28.5%
Provision for income
taxes 71.9 62.3 15.4%
Net earnings $130.5 $94.7 37.8% 37.4%
====== =====
Net earnings per
share -basic $1.64 $1.21 35.5%
===== =====
Net earnings per
share -diluted $1.61 $1.18 36.4% 35.6%
===== =====
Weighted average
shares -basic 79.7 78.4 1.6%
==== ====
Weighted average
shares -diluted 81.1 80.0 1.5%
==== ====
(a) Revenues
from
services
include
fees
received
from our
franchise
offices of
$6.9
million and
$6.6
million for
the three
months
ended
September
30, 2014
and 2013,
respectively.
These fees
are
primarily
based on
revenues
generated
by the
franchise
offices,
which were
$302.0
million and
$285.4
million for
the three
months
ended
September
30, 2014
and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended September 30
-------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $800.5 $761.8 5.1% 5.1%
Other Americas 388.5 382.0 1.7% 9.5%
1,189.0 1,143.8 4.0% 6.5%
------- -------
Southern Europe:
France 1,454.3 1,420.7 2.4% 2.2%
Italy 294.1 269.7 9.0% 9.0%
Other Southern Europe 259.9 227.9 14.1% 13.8%
2,008.3 1,918.3 4.7% 4.5%
------- -------
Northern Europe 1,554.6 1,448.1 7.4% 6.2%
APME 592.5 601.4 -1.5% -0.7%
Right Management 71.6 77.2 -7.2% -8.0%
$5,416.0 $5,188.8 4.4% 4.6%
======== ========
Operating Unit Profit:
Americas:
United States $41.9 $34.3 21.9% 21.9%
Other Americas 14.6 11.4 29.3% 34.8%
56.5 45.7 23.8% 25.1%
---- ----
Southern Europe:
France 84.2 58.4 44.2% 43.7%
Italy 14.7 10.7 37.4% 37.3%
Other Southern Europe 6.1 4.0 51.4% 50.6%
105.0 73.1 43.6% 43.1%
----- ----
Northern Europe 59.6 50.3 18.4% 17.3%
APME 21.6 19.2 12.5% 13.7%
Right Management 6.3 4.5 40.1% 38.3%
249.0 192.8
Corporate expenses (28.3) (21.9)
Intangible asset
amortization expense (8.4) (8.5)
Operating profit 212.3 162.4 30.7% 30.6%
Interest and other
expenses (b) (9.9) (5.4)
Earnings before income
taxes $202.4 $157.0
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $4.4 million and $4.2 million
for the three months ended September 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the
franchise offices, which were $196.3 million and $181.6 million for the three months ended September 30, 2014 and 2013,
respectively.
(b) The components of interest and other expenses were:
2014 2013
---- ----
Interest expense $9.6 $7.9
Interest income (1.4) (0.9)
Foreign exchange loss
(gain) 0.7 (0.3)
Miscellaneous expense
(income), net 1.0 (1.3)
$9.9 $5.4
==== ====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Nine Months Ended September 30
------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $15,641.7 $14,998.4 4.3% 3.8%
Cost of services 13,022.3 12,518.3 4.0% 3.5%
-------- --------
Gross profit 2,619.4 2,480.1 5.6% 5.3%
Selling and
administrative
expenses 2,092.8 2,135.2 -2.0% -2.2%
------- -------
Operating profit 526.6 344.9 52.7% 51.7%
Interest and other
expenses 27.0 27.2 -0.9%
---- ----
Earnings before
income taxes 499.6 317.7 57.3% 55.9%
Provision for income
taxes 189.2 130.9 44.6%
Net earnings $310.4 $186.8 66.1% 65.0%
====== ======
Net earnings per
share -basic $3.89 $2.41 61.4%
===== =====
Net earnings per
share -diluted $3.82 $2.36 61.9% 60.6%
===== =====
Weighted average
shares -basic 79.8 77.6 2.8%
==== ====
Weighted average
shares -diluted 81.3 79.2 2.7%
==== ====
(a) Revenues
from
services
include
fees
received
from our
franchise
offices of
$18.8
million and
$18.0
million for
the nine
months
ended
September
30, 2014
and 2013,
respectively.
These fees
are
primarily
based on
revenues
generated
by the
franchise
offices,
which were
$845.2
million and
$792.4
million for
the nine
months
ended
September
30, 2014
and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Nine Months Ended September 30
------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $2,296.9 $2,216.4 3.6% 3.6%
Other Americas 1,114.3 1,156.1 -3.6% 6.9%
3,411.2 3,372.5 1.1% 4.8%
------- -------
Southern Europe:
France 4,083.7 3,886.5 5.1% 2.1%
Italy 882.7 806.0 9.5% 6.4%
Other Southern Europe 732.9 624.3 17.4% 14.4%
5,699.3 5,316.8 7.2% 4.2%
------- -------
Northern Europe 4,546.3 4,217.2 7.8% 5.2%
APME 1,760.2 1,857.2 -5.2% -1.2%
Right Management 224.7 234.7 -4.3% -4.9%
$15,641.7 $14,998.4 4.3% 3.8%
========= =========
Operating Unit Profit:
Americas:
United States $85.0 $72.3 17.5% 17.5%
Other Americas 41.2 32.0 29.2% 40.9%
126.2 104.3 21.1% 24.7%
----- -----
Southern Europe:
France 207.3 129.0 60.7% 56.3%
Italy 45.6 37.1 23.1% 19.4%
Other Southern Europe 16.4 7.5 117.9% 112.4%
269.3 173.6 55.1% 50.8%
----- -----
Northern Europe 144.2 94.1 53.2% 50.4%
APME 62.8 54.2 15.8% 21.3%
Right Management 27.3 13.9 96.2% 95.4%
629.8 440.1
Corporate expenses (78.2) (69.9)
Intangible asset
amortization expense (25.0) (25.3)
Operating profit 526.6 344.9 52.7% 51.7%
Interest and other
expenses (b) (27.0) (27.2)
Earnings before income
taxes $499.6 $317.7
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $11.7 million and $11.2 million for
the nine months ended September 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise
offices, which were $555.7 million and $512.0 million for the nine months ended September 30, 2014 and 2013, respectively.
(b) The components of interest and other expenses were:
2014 2013
---- ----
Interest expense $27.5 $28.9
Interest income (3.4) (2.7)
Foreign exchange
(gain) loss (1.4) 1.5
Miscellaneous expense
(income), net 4.3 (0.5)
$27.0 $27.2
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Sep. 30 Dec. 31
2014 2013
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $660.7 $737.6
Accounts
receivable,
net 4,381.4 4,277.9
Prepaid
expenses and
other assets 120.9 161.3
Future income
tax benefits 50.7 66.2
Total current
assets 5,213.7 5,243.0
Other assets:
Goodwill and
other
intangible
assets, net 1,389.8 1,400.0
Other assets 627.4 479.3
Total other
assets 2,017.2 1,879.3
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 673.4 706.2
Less:
accumulated
depreciation
and
amortization 523.6 540.2
Net property
and
equipment 149.8 166.0
Total assets $7,380.7 $7,288.3
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $1,601.9 $1,523.9
Employee
compensation
payable 215.4 230.4
Accrued
liabilities 499.9 536.1
Accrued
payroll
taxes and
insurance 597.7 680.7
Value added
taxes
payable 520.2 502.5
Short-term
borrowings
and current
maturities
of long-
term debt 40.1 36.0
Total current
liabilities 3,475.2 3,509.6
Other liabilities:
Long-term
debt 443.8 481.9
Other long-
term
liabilities 421.8 382.6
Total other
liabilities 865.6 864.5
Shareholders' equity:
Common stock 1.1 1.1
Capital in
excess of
par value 3,076.8 3,014.0
Retained
earnings 1,588.9 1,317.5
Accumulated
other
comprehensive
(loss)
income (44.8) 82.2
Treasury
stock, at
cost (1,582.1) (1,500.6)
Total
shareholders'
equity 3,039.9 2,914.2
Total
liabilities
and
shareholders'
equity $7,380.7 $7,288.3
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Nine Months Ended
September 30
------------
2014 2013
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $310.4 $186.8
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and
amortization 64.3 70.9
Deferred income taxes 6.9 (0.1)
Provision for doubtful
accounts 15.0 19.1
Share-based
compensation 34.3 22.8
Excess tax benefit on
exercise of share-
based awards (3.4) (4.5)
Changes in operating assets and liabilities,
excluding
the impact of acquisitions:
Accounts receivable (355.4) (128.8)
Other assets (136.7) (101.1)
Other liabilities 169.5 46.6
Cash provided by
operating activities 104.9 111.7
----- -----
Cash Flows from Investing Activities:
Capital expenditures (32.8) (33.6)
Acquisitions of
businesses, net of
cash acquired (25.1) (18.2)
Proceeds from sales of
property and
equipment 1.3 2.6
Cash used in investing
activities (56.6) (49.2)
----- -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings 10.2 (1.1)
Proceeds from long-
term debt - 3.6
Repayments of long-
term debt (1.6) (268.7)
Proceeds from share-
based awards 24.3 65.8
Other share-based
award transactions,
net (5.5) 12.0
Repurchases of common
stock (72.6) -
Dividends paid (39.0) (35.5)
Cash used in financing
activities (84.2) (223.9)
----- ------
Effect of exchange
rate changes on cash (41.0) 2.0
Change in cash and
cash equivalents (76.9) (159.4)
Cash and cash
equivalents,
beginning of period 737.6 648.1
Cash and cash
equivalents, end of
period $660.7 $488.7
====== ======
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SOURCE ManpowerGroup
