MANPOWERGROUP INC. MILWAUKEE, April 21, 2016 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2016 were $71.7 million, or 98 cents per diluted share, compared to net earnings of $65.7 million, or 83 cents per diluted share, a year earlier. Revenues for the first quarter were $4.6 billion, an increase of 1% from the prior year period.
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Financial results in the quarter were impacted by the stronger US dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased 5% and earnings per share increased 22%. Earnings per share in the quarter were negatively impacted 3 cents by changes in foreign currencies compared to the prior year.
Jonas Prising, ManpowerGroup Chairman & CEO, said, "We are pleased with our performance in the 1st quarter, starting the year on a positive note. The global environment continues to be uneven, with some countries continuing on their path of slow and steady growth and others struggling to gain traction.
"This is the kind of environment where our workforce solutions can be instrumental in helping companies execute their business strategies, and at the same time provide millions of job seekers with opportunities for quality employment. We are committed to delivering outstanding service quality to our clients and candidates, helping them succeed in an uncertain environment.
"We anticipate second quarter earnings per share will range between $1.47 to $1.55, which includes an estimated unfavorable currency impact of 2 cents."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 21, 2016 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 nearly 70 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 2016, ManpowerGroup was named one of the World's Most Ethical Companies for the sixth 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, 2015, 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
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $4,587.7 $4,542.2 1.0% 5.2%
Cost of services 3,813.9 3,780.2 0.9% 5.2%
------- -------
Gross profit 773.8 762.0 1.5% 5.2%
Selling and
administrative
expenses 642.1 639.2 0.5% 4.0%
----- -----
Operating profit 131.7 122.8 7.2% 11.2%
Interest and other
expenses 12.7 10.6 19.1%
---- ----
Earnings before
income taxes 119.0 112.2 6.1% 9.9%
Provision for
income taxes 47.3 46.5 1.8%
Net earnings $71.7 $65.7 9.2% 13.3%
===== =====
Net earnings per
share -basic $0.98 $0.83 18.1%
===== =====
Net earnings per
share -diluted $0.98 $0.83 18.1% 21.7%
===== =====
Weighted average
shares -basic 72.8 78.7 -7.5%
==== ====
Weighted average
shares -diluted 73.5 79.6 -7.7%
==== ====
(a) Revenues from services include fees received from our franchise offices of $5.2 million and $5.5 million for the
three months ended March 31, 2016 and 2015, respectively. These fees are primarily based on revenues
generated by the franchise offices, which were $227.8 million and $249.9 million for the three months ended
March 31, 2016 and 2015, respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $703.1 $725.1 -3.0% -3.0%
Other Americas 342.8 359.3 -4.6% 18.7%
1,045.9 1,084.4 -3.6% 4.2%
------- -------
Southern Europe:
France 1,078.8 1,040.8 3.7% 5.5%
Italy 263.1 270.1 -2.6% -0.8%
Other Southern Europe 345.8 331.8 4.2% 5.8%
1,687.7 1,642.7 2.7% 4.5%
------- -------
Northern Europe 1,213.9 1,217.7 -0.3% 4.1%
APME 576.2 533.1 8.1% 12.1%
Right Management 64.0 64.3 -0.6% 2.3%
$4,587.7 $4,542.2 1.0% 5.2%
======== ========
Operating Unit Profit:
Americas:
United States $22.8 $17.4 30.6% 30.6%
Other Americas 11.6 12.8 -9.1% 12.9%
34.4 30.2 13.8% 23.1%
---- ----
Southern Europe:
France 47.2 50.3 -6.1% -5.4%
Italy 16.1 14.0 15.4% 16.6%
Other Southern Europe 8.4 8.0 5.0% 4.9%
71.7 72.3 -0.7% 0.0%
---- ----
Northern Europe 32.5 30.0 8.3% 11.4%
APME 19.3 18.8 2.4% 5.9%
Right Management 9.5 5.6 69.0% 71.5%
167.4 156.9
Corporate expenses (26.7) (26.7)
Intangible asset amortization expense (9.0) (7.4)
Operating profit 131.7 122.8 7.2% 11.2%
Interest and other expenses (b) (12.7) (10.6)
Earnings before income taxes $119.0 $112.2
====== ======
(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, 2016 and 2015. These
fees are primarily based on revenues generated by the franchise offices, which were $160.8 million and $168.7 million for the three months ended March 31, 2016 and 2015,
respectively.
(b) The components of interest and other expenses were:
2016 2015
---- ----
Interest expense $9.5 $8.0
Interest income (0.7) (0.5)
Foreign exchange losses 0.9 0.7
Miscellaneous expenses, net 3.0 2.4
$12.7 $10.6
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2016 2015
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $747.6 $730.5
Accounts receivable, net 4,308.3 4,243.0
Prepaid expenses and other
assets 128.2 119.0
Total current assets 5,184.1 5,092.5
Other assets:
Goodwill 1,275.6 1,257.4
Intangible assets, net 321.7 326.5
Other assets 612.6 694.0
Total other assets 2,209.9 2,277.9
Property and equipment:
Land, buildings, leasehold
improvements and equipment 611.9 585.4
Less: accumulated
depreciation and
amortization 457.8 438.3
Net property and equipment 154.1 147.1
Total assets $7,548.1 $7,517.5
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,819.9 $1,659.2
Employee compensation
payable 172.9 211.4
Accrued liabilities 461.2 483.7
Accrued payroll taxes and
insurance 542.6 613.8
Value added taxes payable 424.8 438.7
Short-term borrowings and
current maturities of
long-term debt 29.6 44.2
Total current liabilities 3,451.0 3,451.0
Other liabilities:
Long-term debt 850.0 810.9
Other long-term
liabilities 572.4 563.1
Total other liabilities 1,422.4 1,374.0
Shareholders' equity:
ManpowerGroup shareholders' equity
Common stock 1.2 1.2
Capital in excess of par
value 3,195.9 3,186.7
Retained earnings 2,037.7 1,966.0
Accumulated other
comprehensive loss (265.7) (286.0)
Treasury stock, at cost (2,364.2) (2,243.2)
Total ManpowerGroup
shareholders' equity 2,604.9 2,624.7
------- -------
Noncontrolling interests 69.8 67.8
Total shareholders' equity 2,674.7 2,692.5
Total liabilities and
shareholders' equity $7,548.1 $7,517.5
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
March 31
--------
2016 2015
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $71.7 $65.7
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and
amortization 21.3 18.7
Deferred income
taxes 14.4 18.2
Provision for
doubtful accounts 4.1 5.3
Share-based
compensation 7.2 6.7
Excess tax benefit
on exercise of
share-based awards (0.1) (0.2)
Changes in operating assets and
liabilities, excluding
the impact of acquisitions:
Accounts receivable 44.2 (54.3)
Other assets 90.0 (68.2)
Other liabilities (88.2) 30.4
Cash provided by
operating
activities 164.6 22.3
----- ----
Cash Flows from Investing Activities:
Capital expenditures (16.6) (9.9)
Acquisitions of
businesses, net of
cash acquired (13.8) (10.1)
Proceeds from sales
of investments,
property and
equipment 0.4 0.3
Cash used in
investing
activities (30.0) (19.7)
----- -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings (9.9) 3.4
Proceeds from long-
term debt - 0.1
Repayments of long-
term debt (5.9) (1.2)
Proceeds from share-
based awards and
other equity
transactions 2.4 12.2
Other share-based
award transactions,
net (3.2) (7.6)
Repurchases of
common stock (117.7) (39.6)
Cash used in
financing
activities (134.3) (32.7)
------ -----
Effect of exchange
rate changes on
cash 16.8 (41.5)
Change in cash and
cash equivalents 17.1 (71.6)
Cash and cash
equivalents,
beginning of period 730.5 699.2
Cash and cash
equivalents, end of
period $747.6 $627.6
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SOURCE ManpowerGroup
