MANPOWERGROUP INC. MILWAUKEE, Jan. 30, 2015 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported net earnings of $1.47 per diluted share for the three months ended December 31, 2014 compared to $1.25 per diluted share in the prior year period. The net earnings in the quarter were $117.2 million compared to $101.2 million a year earlier. Revenues for the fourth quarter totaled $5.1 billion, a decrease of 2 percent in U.S. dollars from the year earlier period and an increase of 5 percent in constant currency.
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Included in the prior year fourth quarter results is a restructuring charge related to our simplification and cost recalibration plan of $26.5 million ($19.4 million after tax or 24 cents per diluted share). There were no restructuring charges in the current year quarter. Fourth quarter results were unfavorably impacted by 13 cents per diluted share as foreign currencies were relatively weaker compared to the prior year.
Jonas Prising, ManpowerGroup CEO, said: "We are pleased with our results in the 4(th) quarter, capping off a year of very good financial performance and margin expansion, continued progress on our strategic initiatives and leadership in workforce solutions. We enter into 2015 with a determination to drive profitable growth, while delivering on our long term ambitions and strategic objectives. We have the market opportunity, we have a strong plan and with our team of talented people across our great company, we will pursue our objectives with discipline, focus and passion for the business.
"We are anticipating diluted earnings per share in the first quarter of 2015 to be in the range of 73 to 81 cents which includes an estimated unfavorable currency impact of 15 cents," Prising stated.
Net earnings per diluted share for the year ended December 31, 2014 was $5.30 compared to $3.62 per diluted share in 2013. Net earnings were $427.6 million compared to $288.0 million in the prior year. Revenues for the year were $20.8 billion, an increase of 3 percent in U.S. dollars from the prior year and 4 percent in constant currency.
Included in the 2013 full year results are restructuring costs of 82 cents per diluted share. There were no restructuring charges in 2014. 2014 results were unfavorably impacted by 10 cents per diluted share due to changes in foreign currencies compared to the prior year.
In conjunction with its fourth quarter and full year earnings release, ManpowerGroup will broadcast its conference call live over the Internet on January 30, 2015 at 7:30 a.m. CST (8:30 a.m. EST). 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
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 December 31
------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $5,121.1 $5,252.1 -2.5% 4.8%
Cost of services 4,252.3 4,365.5 -2.6% 4.7%
------- -------
Gross profit 868.8 886.6 -2.0% 5.2%
Selling and
administrative
expenses 675.5 719.6 -6.1% 0.2%
----- -----
Operating profit 193.3 167.0 15.7% 26.7%
Interest and other
expenses 11.3 9.2 22.7%
---- ---
Earnings before
income taxes 182.0 157.8 15.3% 25.7%
Provision for income
taxes 64.8 56.6 14.3%
Net earnings $117.2 $101.2 15.9% 26.3%
====== ======
Net earnings per
share -basic $1.49 $1.28 16.4%
===== =====
Net earnings per
share -diluted $1.47 $1.25 17.6% 28.0%
===== =====
Weighted average
shares -basic 78.8 79.3 -0.6%
==== ====
Weighted average
shares -diluted 79.8 80.8 -1.2%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $6.6
million and $6.4 million for
the three months ended
December 31, 2014 and 2013,
respectively. These fees are
primarily based on revenues
generated by the franchise
offices, which were $279.5
million and $276.7 million
for the three months ended
December 31, 2014 and 2013,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended December 31
------------------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $789.5 $750.6 5.2% 5.2%
Other Americas 383.0 387.1 -1.1% 11.2%
1,172.5 1,137.7 3.1% 7.2%
------- -------
Southern Europe:
France 1,267.9 1,398.4 -9.3% -1.2%
Italy 296.1 281.6 5.2% 14.6%
Other Southern
Europe 246.4 240.2 2.5% 11.8%
1,810.4 1,920.2 -5.7% 2.8%
------- -------
Northern Europe 1,501.8 1,521.6 -1.3% 7.1%
APME 566.9 590.5 -4.0% 3.2%
Right Management 69.5 82.1 -15.3% -11.9%
$5,121.1 $5,252.1 -2.5% 4.8%
======== ========
Operating Unit Profit:
Americas:
United States $40.4 $27.5 47.6% 47.6%
Other Americas 15.0 11.9 24.4% 39.1%
55.4 39.4 40.5% 45.0%
---- ----
Southern Europe:
France 68.2 69.9 -2.3% 6.4%
Italy 18.6 16.7 11.0% 20.8%
Other Southern
Europe 5.6 4.4 26.2% 38.1%
92.4 91.0 1.5% 10.6%
---- ----
Northern Europe 53.9 45.6 18.2% 33.5%
APME 21.4 16.6 29.5% 38.1%
Right Management 6.2 6.5 -4.2% -3.9%
229.3 199.1
Corporate expenses (27.6) (23.3)
Intangible asset
amortization
expense (8.4) (8.8)
Operating profit 193.3 167.0 15.7% 26.7%
Interest and other
expenses (b) (11.3) (9.2)
Earnings before
income taxes $182.0 $157.8
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $4.4 million and
$4.0 million for the three
months ended December 31, 2014
and 2013, respectively. These
fees are primarily based on
revenues generated by the
franchise offices, which were
$189.1 million and $183.6
million for the three months
ended December 31, 2014 and
2013, respectively.
(b) The components of interest and
other expenses were:
2014 2013
---- ----
Interest expense $8.4 $8.2
Interest income (1.0) (1.0)
Foreign exchange (gain) loss (0.8) 0.8
Miscellaneous expenses, net 4.7 1.2
$11.3 $9.2
===== ====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $20,762.8 $20,250.5 2.5% 4.0%
Cost of services 17,274.6 16,883.8 2.3% 3.8%
-------- --------
Gross profit 3,488.2 3,366.7 3.6% 5.2%
Selling and
administrative
expenses 2,768.3 2,854.8 -3.0% -1.6%
------- -------
Operating profit 719.9 511.9 40.6% 43.5%
Interest and other
expenses 38.3 36.4 5.0%
---- ----
Earnings before
income taxes 681.6 475.5 43.4% 45.9%
Provision for income
taxes 254.0 187.5 35.5%
Net earnings $427.6 $288.0 48.5% 51.4%
====== ======
Net earnings per
share -basic $5.38 $3.69 45.8%
===== =====
Net earnings per
share -diluted $5.30 $3.62 46.4% 49.2%
===== =====
Weighted average
shares -basic 79.5 78.0 1.9%
==== ====
Weighted average
shares -diluted 80.7 79.6 1.5%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $25.4
million and $24.4 million for
the years ended December 31,
2014 and 2013, respectively.
These fees are primarily
based on revenues generated
by the franchise offices,
which were $1,124.7 million
and $1,069.1 million for the
years ended December 31, 2014
and 2013, respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2014 2013 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $3,086.4 $2,967.0 4.0% 4.0%
Other Americas 1,497.3 1,543.2 -3.0% 8.0%
4,583.7 4,510.2 1.6% 5.4%
------- -------
Southern Europe:
France 5,351.6 5,284.9 1.3% 1.2%
Italy 1,178.8 1,087.6 8.4% 8.5%
Other Southern
Europe 979.3 864.5 13.3% 13.7%
7,509.7 7,237.0 3.8% 3.8%
------- -------
Northern Europe 6,048.1 5,738.8 5.4% 5.7%
APME 2,327.1 2,447.7 -4.9% -0.1%
Right Management 294.2 316.8 -7.1% -6.7%
$20,762.8 $20,250.5 2.5% 4.0%
========= =========
Operating Unit Profit:
Americas:
United States $125.4 $99.8 25.7% 25.7%
Other Americas 56.2 43.9 27.9% 40.4%
181.6 143.7 26.4% 30.2%
----- -----
Southern Europe:
France 275.5 198.9 38.5% 38.7%
Italy 64.2 53.8 19.3% 19.8%
Other Southern
Europe 22.0 11.9 83.9% 84.8%
361.7 264.6 36.7% 37.0%
----- -----
Northern Europe 198.1 139.7 41.8% 44.9%
APME 84.2 70.8 19.0% 25.2%
Right Management 33.5 20.4 64.1% 63.7%
859.1 639.2
Corporate expenses (105.8) (93.2)
Intangible asset
amortization
expense (33.4) (34.1)
Operating profit 719.9 511.9 40.6% 43.5%
Interest and other
expenses (b) (38.3) (36.4)
Earnings before
income taxes $681.6 $475.5
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $16.1 million and
$15.2 million for the years
ended December 31, 2014 and
2013, respectively. These fees
are primarily based on
revenues generated by the
franchise offices, which were
$744.8 million and $695.6
million for the years ended
December 31, 2014 and 2013,
respectively.
(b) The components of interest and
other expenses were:
2014 2013
---- ----
Interest expense $35.9 $37.1
Interest income (4.4) (3.7)
Foreign exchange (gain) loss (2.2) 2.3
Miscellaneous expenses, net 9.0 0.7
$38.3 $36.4
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Dec. 31 Dec. 31
2014 2013
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and
cash
equivalents $699.2 $737.6
Accounts
receivable,
net 4,134.5 4,277.9
Prepaid
expenses
and
other
assets 147.8 161.3
Future
income
tax
benefits 52.2 66.2
Total
current
assets 5,033.7 5,243.0
Other assets:
Goodwill 1,075.2 1,090.9
Intangible
assets,
net 286.8 309.1
Other
assets 637.7 479.3
Total
other
assets 1,999.7 1,879.3
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 633.5 706.2
Less:
accumulated
depreciation
and
amortization 484.4 540.2
Net
property
and
equipment 149.1 166.0
Total
assets $7,182.5 $7,288.3
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $1,542.7 $1,523.9
Employee
compensation
payable 204.5 230.4
Accrued
liabilities 493.3 536.1
Accrued
payroll
taxes
and
insurance 622.4 680.7
Value
added
taxes
payable 466.3 502.5
Short-
term
borrowings
and
current
maturities
of
long-
term
debt 45.2 36.0
Total
current
liabilities 3,374.4 3,509.6
Other liabilities:
Long-
term
debt 423.9 481.9
Other
long-
term
liabilities 441.2 382.6
Total
other
liabilities 865.1 864.5
Shareholders' equity:
Common
stock 1.1 1.1
Capital
in
excess
of par
value 3,084.2 3,014.0
Retained
earnings 1,667.8 1,317.5
Accumulated
other
comprehensive
(loss)
income (155.2) 82.2
Treasury
stock,
at cost (1,654.9) (1,500.6)
Total
shareholders'
equity 2,943.0 2,914.2
Total
liabilities
and
shareholders'
equity $7,182.5 $7,288.3
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Year Ended
December 31
-----------
2014 2013
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $427.6 $288.0
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and
amortization 83.8 94.3
Deferred income taxes 54.0 17.0
Provision for doubtful
accounts 18.9 24.1
Share-based
compensation 40.6 31.5
Excess tax benefit on
exercise of share-
based awards (4.5) (7.3)
Changes in operating assets and liabilities,
excluding
the impact of acquisitions:
Accounts receivable (270.5) (82.6)
Other assets (198.7) (35.9)
Other liabilities 155.0 67.6
Cash provided by
operating activities 306.2 396.7
----- -----
Cash Flows from Investing Activities:
Capital expenditures (51.5) (44.7)
Acquisitions of
businesses, net of cash
acquired (32.0) (46.3)
Proceeds from sales of
property and equipment 2.1 3.4
Cash used in investing
activities (81.4) (87.6)
----- -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings 16.0 (5.7)
Proceeds from long-term
debt - 3.9
Repayments of long-term
debt (2.6) (269.5)
Proceeds from share-
based awards 25.5 101.0
Other share-based award
transactions, net (6.3) 16.1
Repurchases of common
stock (143.5) -
Dividends paid (77.3) (72.0)
Cash used in financing
activities (188.2) (226.2)
------ ------
Effect of exchange rate
changes on cash (75.0) 6.6
Change in cash and cash
equivalents (38.4) 89.5
Cash and cash
equivalents, beginning
of period 737.6 648.1
Cash and cash
equivalents, end of
period $699.2 $737.6
====== ======
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SOURCE ManpowerGroup
