MANPOWERGROUP INC. MILWAUKEE, April 21, 2017 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2017 were $74.4 million, or $1.09 per diluted share, compared to net earnings of $71.7 million, or 98 cents per diluted share, a year earlier. Revenues for the first quarter were $4.8 billion, an increase of 4% from the prior year period.
The current year quarter included restructuring charges which reduced earnings per share by 30 cents and a lower income tax rate which increased earnings per share by 20 cents primarily due to discrete items.
Financial results in the quarter were also impacted by the stronger US dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased 7% and earnings per diluted share increased 14%. Earnings per share in the quarter were negatively impacted 3 cents by changes in foreign currencies compared to the prior year, or 5 cents excluding the restructuring charges.
Jonas Prising, ManpowerGroup Chairman & CEO, said, "The strong first quarter results are very encouraging, and build on the progress we made last year. We are seeing further broad-based improvement in Europe, setting the stage for what we believe could be a slow but sustained labor market recovery in that region.
"Our workforce services and solutions are resonating with our clients and candidates, which gives us the confidence that we are on the right track and well placed to seize further opportunities during 2017.
"We anticipate second quarter earnings per share will be between $1.67 and $1.75, which includes an estimated unfavorable currency impact of 8 cents and excludes restructuring charges."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 21, 2017 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. 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 2017, ManpowerGroup was named one of the World's Most Ethical Companies for the seventh 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, 2016, 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
2017 2016 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $4,757.2 $4,587.7 3.7% 6.7%
Cost of services 3,969.4 3,813.9 4.1% 7.2%
------- -------
Gross profit 787.8 773.8 1.8% 4.6%
Selling and
administrative
expenses 660.8 642.1 2.9% 5.7%
----- -----
Operating profit 127.0 131.7 -3.6% -1.1%
Interest and other
expenses 14.9 12.7 17.0%
---- ----
Earnings before
income taxes 112.1 119.0 -5.8% -3.2%
Provision for
income taxes 37.7 47.3 -20.3%
Net earnings $74.4 $71.7 3.8% 6.5%
===== =====
Net earnings per
share -basic $1.10 $0.98 12.2%
===== =====
Net earnings per
share -diluted $1.09 $0.98 11.2% 14.3%
===== =====
Weighted average
shares -basic 67.7 72.8 -7.0%
==== ====
Weighted average
shares -diluted 68.4 73.5 -6.9%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $5.3
million and $5.2 million for
the three months ended March
31, 2017 and 2016,
respectively. These fees are
primarily based on revenues
generated by the franchise
offices, which were $239.1
million and $227.8 million for
the three months ended March
31, 2017 and 2016,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
----------
Amount Constant
2017 2016 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United
States
(a) $661.5 $703.1 -5.9% -5.9%
Other
Americas 364.7 342.8 6.4% 8.5%
1,026.2 1,045.9 -1.9% -1.2%
------- -------
Southern Europe:
France 1,137.5 1,078.8 5.4% 9.3%
Italy 294.4 263.1 11.9% 16.0%
Other
Southern
Europe 372.0 345.8 7.6% 9.8%
1,803.9 1,687.7 6.9% 10.4%
------- -------
Northern
Europe 1,238.7 1,213.9 2.0% 8.8%
APME 632.4 576.2 9.7% 7.8%
Right
Management 56.0 64.0 -12.5% -10.5%
$4,757.2 $4,587.7 3.7% 6.7%
======== ========
Operating Unit Profit:
Americas:
United
States $26.4 $22.8 16.1% 16.1%
Other
Americas 12.4 11.6 6.3% 10.7%
38.8 34.4 12.8% 14.3%
---- ----
Southern Europe:
France 50.1 47.2 6.1% 10.1%
Italy 18.2 16.1 13.0% 17.3%
Other
Southern
Europe 12.7 8.4 50.6% 53.9%
81.0 71.7 12.9% 16.9%
---- ----
Northern
Europe 11.3 32.5 -65.1% -64.3%
APME 20.1 19.3 4.4% 2.9%
Right
Management 8.8 9.5 -7.4% -6.2%
160.0 167.4
Corporate
expenses (24.6) (26.7)
Intangible
asset
amortization
expense (8.4) (9.0)
Operating
profit 127.0 131.7 -3.6% -1.1%
Interest
and
other
expenses
(b) (14.9) (12.7)
Earnings
before
income
taxes $112.1 $119.0
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $3.5 million and
$3.4 million for the three
months ended March 31, 2017 and
2016, respectively. These fees
are primarily based on revenues
generated by the franchise
offices, which were $167.7
million and $160.8 million for
the three months ended March
31, 2017 and 2016,
respectively.
(b) The components of interest and other expenses
were:
2017 2016
---- ----
Interest expense $9.3 $9.5
Interest income (1.0) (0.7)
Foreign exchange losses 0.1 0.9
Miscellaneous expenses, net 6.5 3.0
$14.9 $12.7
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2017 2016
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and
cash
equivalents $724.4 $598.5
Accounts
receivable,
net 4,430.6 4,413.1
Prepaid
expenses
and
other
assets 145.8 121.3
Total
current
assets 5,300.8 5,132.9
Other assets:
Goodwill 1,256.3 1,239.9
Intangible
assets,
net 287.3 294.4
Other
assets 687.3 759.7
Total
other
assets 2,230.9 2,294.0
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 572.0 567.0
Less:
accumulated
depreciation
and
amortization 424.8 419.7
Net
property
and
equipment 147.2 147.3
Total
assets $7,678.9 $7,574.2
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts
payable $2,025.6 $1,914.4
Employee
compensation
payable 175.0 208.1
Accrued
liabilities 406.5 398.6
Accrued
payroll
taxes
and
insurance 567.5 649.2
Value
added
taxes
payable 435.0 448.7
Short-
term
borrowings
and
current
maturities
of long-
term
debt 37.6 39.8
Total
current
liabilities 3,647.2 3,658.8
Other liabilities:
Long-
term
debt 796.0 785.6
Other
long-
term
liabilities 703.6 683.4
Total
other
liabilities 1,499.6 1,469.0
Shareholders' equity:
ManpowerGroup shareholders' equity
Common
stock 1.2 1.2
Capital
in
excess
of par
value 3,268.3 3,227.2
Retained
earnings 2,365.7 2,291.3
Accumulated
other
comprehensive
loss (385.4) (426.1)
Treasury
stock,
at cost (2,804.4) (2,731.7)
Total
ManpowerGroup
shareholders'
equity 2,445.4 2,361.9
------- -------
Noncontrolling
interests 86.7 84.5
Total
shareholders'
equity 2,532.1 2,446.4
Total
liabilities
and
shareholders'
equity $7,678.9 $7,574.2
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
March 31,
---------
2017 2016
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $74.4 $71.7
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and
amortization 20.3 21.3
Deferred income
taxes 13.6 14.4
Provision for
doubtful
accounts 5.9 4.1
Share-based
compensation 7.2 7.2
Excess tax
benefit on
exercise of
share-based
awards - (0.1)
Changes in operating assets and
liabilities, excluding the impact of
acquisitions:
Accounts
receivable 50.3 44.2
Other assets 65.1 90.0
Other
liabilities (45.8) (88.2)
Cash provided by
operating
activities 191.0 164.6
----- -----
Cash Flows from Investing Activities:
Capital
expenditures (10.8) (16.6)
Acquisitions of
businesses, net
of cash
acquired (11.7) (13.8)
Proceeds from
the sale of
investments,
property and
equipment 0.7 0.4
Cash used in
investing
activities (21.8) (30.0)
----- -----
Cash Flows from Financing Activities:
Net change in
short-term
borrowings (3.6) (9.9)
Repayments of
long-term debt (0.1) (5.9)
Payments of
contingent
consideration
for
acquisitions (12.9) -
Proceeds from
share-based
awards and
other equity
transactions 33.8 2.4
Other share-
based award
transactions (15.8) (3.2)
Repurchases of
common stock (57.0) (117.7)
Cash used in
financing
activities (55.6) (134.3)
----- ------
Effect of
exchange rate
changes on cash 12.3 16.8
Change in cash
and cash
equivalents 125.9 17.1
Cash and cash
equivalents,
beginning of
period 598.5 730.5
Cash and cash
equivalents,
end of period $724.4 $747.6
====== ======
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SOURCE ManpowerGroup
