MANPOWERGROUP INC. MILWAUKEE, Feb. 3, 2016 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported net earnings of $1.66 per diluted share for the three months ended December 31, 2015 compared to $1.47 per diluted share in the prior year period. The net earnings in the quarter were $123.9 million compared to $117.2 million a year earlier. Revenues for the fourth quarter totaled $5.0 billion, a decrease of 3 percent from the year earlier 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, revenue increased 7% and net earnings per diluted share increased 24%. Earnings per share were negatively impacted 16 cents by changes in foreign currencies compared to the prior year. The quarter also included a favorable impact from a lower income tax rate, as the full year amount of the U.S. Workers Opportunity Tax Credit (WOTC) was recorded upon legislative approval in December 2015.
Jonas Prising, ManpowerGroup Chairman & CEO, said: "We are pleased with our solid performance in the 4(th) quarter, with good top line and bottom line performance, capping off a very good year. We made significant operational and strategic progress during the course of 2015 and are well positioned to further build on this progress as we enter the new year.
"Our workforce solutions are ideally suited to help companies adapt and prosper in a volatile and uncertain environment, and at the same time help millions of individuals find meaningful employment all over the world. That is the foundation of our confidence and passion for our business in 2016 and beyond.
"We are anticipating diluted earnings per share in the first quarter of 2016 to be in the range of 87 to 95 cents which includes an estimated unfavorable currency impact of 4 cents," Prising stated.
Net earnings per diluted share for the year ended December 31, 2015 was $5.40 compared to $5.30 per diluted share in 2014. Net earnings were $419.2 million compared to $427.6 million in the prior year. Revenues for the year were $19.3 billion, a decrease of 7 percent in U.S. dollars from the prior year and an increase of 7 percent in constant currency.
2015 earnings were unfavorably impacted by 81 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 February 3, 2016 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® (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 December 31
------------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $4,953.9 $5,121.1 -3.3% 7.3%
Cost of services 4,102.8 4,252.3 -3.5% 7.2%
------- -------
Gross profit 851.1 868.8 -2.0% 7.8%
Selling and
administrative
expenses 670.0 675.5 -0.8% 8.7%
----- -----
Operating profit 181.1 193.3 -6.3% 4.7%
Interest and other
expenses 1.0 11.3 -91.9%
--- ----
Earnings before
income taxes 180.1 182.0 -1.0% 9.9%
Provision for
income taxes 56.2 64.8 -13.3%
Net earnings $123.9 $117.2 5.7% 16.4%
====== ======
Net earnings per
share -basic $1.67 $1.49 12.1%
===== =====
Net earnings per
share -diluted $1.66 $1.47 12.9% 23.8%
===== =====
Weighted average
shares -basic 74.1 78.8 -6.0%
==== ====
Weighted average
shares -diluted 74.9 79.8 -6.2%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $6.1
million and $6.6 million for
the three months ended December
31, 2015 and 2014,
respectively. These fees are
primarily based on revenues
generated by the franchise
offices, which were $269.7
million and $279.5 million for
the three months ended December
31, 2015 and 2014,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended December 31
------------------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $748.5 $789.5 -5.2% -5.2%
Other Americas 391.8 383.0 2.3% 23.5%
1,140.3 1,172.5 -2.7% 4.2%
------- -------
Southern Europe:
France 1,175.4 1,267.9 -7.3% 5.7%
Italy 312.3 296.1 5.5% 20.3%
Other Southern
Europe 255.5 246.4 3.8% 14.8%
1,743.2 1,810.4 -3.7% 9.3%
------- -------
Northern Europe 1,421.0 1,501.8 -5.4% 5.6%
APME 579.2 566.9 2.2% 11.9%
Right Management 70.2 69.5 1.0% 7.8%
$4,953.9 $5,121.1 -3.3% 7.3%
======== ========
Operating Unit Profit:
Americas:
United States $39.2 $40.4 -3.0% -3.0%
Other Americas 16.5 15.0 10.0% 31.2%
55.7 55.4 0.5% 6.2%
---- ----
Southern Europe:
France 66.7 68.2 -2.2% 11.3%
Italy 19.6 18.6 5.7% 20.7%
Other Southern
Europe 6.8 5.6 20.6% 33.1%
93.1 92.4 0.7% 14.5%
---- ----
Northern Europe 40.1 53.9 -25.7% -18.1%
APME 18.1 21.4 -14.3% -8.9%
Right Management 10.3 6.2 64.1% 76.3%
217.3 229.3
Corporate expenses (26.5) (27.6)
Intangible asset
amortization
expense (9.7) (8.4)
Operating profit 181.1 193.3 -6.3% 4.7%
Interest and other
expenses (b) (1.0) (11.3)
Earnings before
income taxes $180.1 $182.0
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $3.7 million and $4.4 million
for the three months ended December 31, 2015 and 2014, respectively. These fees are primarily based on revenues generated by the
franchise offices, which were $174.5 million and $189.1 million for the three months ended December 31, 2015 and 2014,
respectively.
(b) The components of interest and other expenses were:
2015 2014
---- ----
Interest expense $10.6 $8.4
Interest income (0.6) (1.0)
Foreign exchange
gain (5.2) (0.8)
Miscellaneous
(income) expense,
net (3.8) 4.7
$1.0 $11.3
==== =====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $19,329.9 $20,762.8 -6.9% 6.6%
Cost of services 16,034.1 17,274.6 -7.2% 6.5%
-------- --------
Gross profit 3,295.8 3,488.2 -5.5% 7.1%
Selling and
administrative
expenses 2,606.9 2,768.3 -5.8% 6.0%
------- -------
Operating profit 688.9 719.9 -4.3% 11.2%
Interest and other
expenses 28.2 38.3 -26.4%
---- ----
Earnings before
income taxes 660.7 681.6 -3.1% 12.2%
Provision for
income taxes 241.5 254.0 -4.9%
Net earnings $419.2 $427.6 -2.0% 12.8%
====== ======
Net earnings per
share -basic $5.46 $5.38 1.5%
===== =====
Net earnings per
share -diluted $5.40 $5.30 1.9% 17.2%
===== =====
Weighted average
shares -basic 76.8 79.5 -3.5%
==== ====
Weighted average
shares -diluted 77.7 80.7 -3.8%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $24.2
million and $25.4 million for
the years ended December 31,
2015 and 2014, respectively.
These fees are primarily based
on revenues generated by the
franchise offices, which were
$1,082.3 million and $1,124.7
million for the years ended
December 31, 2015 and 2014,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2015 2014 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $3,005.8 $3,086.4 -2.6% -2.6%
Other Americas 1,486.2 1,497.3 -0.7% 17.6%
4,492.0 4,583.7 -2.0% 4.0%
------- -------
Southern Europe:
France 4,661.3 5,351.6 -12.9% 4.3%
Italy 1,226.1 1,178.8 4.0% 24.5%
Other Southern
Europe 984.5 979.3 0.5% 17.0%
6,871.9 7,509.7 -8.5% 9.1%
------- -------
Northern Europe 5,453.3 6,048.1 -9.8% 5.2%
APME 2,239.1 2,327.1 -3.8% 7.9%
Right Management 273.6 294.2 -7.0% 0.5%
$19,329.9 $20,762.8 -6.9% 6.6%
========= =========
Operating Unit Profit:
Americas:
United States $143.8 $125.4 14.7% 14.7%
Other Americas 57.0 56.2 1.3% 19.2%
200.8 181.6 10.5% 16.1%
----- -----
Southern Europe:
France 258.8 275.5 -6.1% 12.6%
Italy 70.9 64.2 10.5% 32.5%
Other Southern
Europe 25.1 22.0 13.7% 31.8%
354.8 361.7 -1.9% 17.3%
----- -----
Northern Europe 159.5 198.1 -19.5% -7.8%
APME 79.3 84.2 -5.7% 5.1%
Right Management 38.3 33.5 14.3% 20.1%
832.7 859.1
Corporate expenses (111.0) (105.8)
Intangible asset
amortization
expense (32.8) (33.4)
Operating profit 688.9 719.9 -4.3% 11.2%
Interest and other
expenses (b) (28.2) (38.3)
Earnings before
income taxes $660.7 $681.6
====== ======
(a) In the United States, revenues from services include fees received from our franchise offices of $15.2 million and $16.1 million for
the years ended December 31, 2015 and 2014, respectively. These fees are primarily based on revenues generated by the franchise
offices, which were $714.1 million and $744.8 million for the years ended December 31, 2015 and 2014, respectively.
(b) The components of interest and other expenses were:
2015 2014
---- ----
Interest expense $36.0 $35.9
Interest income (2.5) (4.4)
Foreign exchange
gain (4.7) (2.2)
Miscellaneous
(income) expense,
net (0.6) 9.0
$28.2 $38.3
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Dec. 31 Dec. 31
2015 2014
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and
cash
equivalents $730.5 $699.2
Accounts
receivable,
net 4,243.0 4,134.5
Prepaid
expenses
and
other
assets 119.0 147.8
Total
current
assets 5,092.5 4,981.5
Other assets:
Goodwill 1,257.4 1,075.2
Intangible
assets,
net 326.5 286.8
Other
assets 694.0 688.6
Total
other
assets 2,277.9 2,050.6
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 585.4 633.5
Less:
accumulated
depreciation
and
amortization 438.3 484.4
Net
property
and
equipment 147.1 149.1
Total
assets $7,517.5 $7,181.2
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts
payable $1,659.2 $1,542.7
Employee
compensation
payable 211.4 204.5
Accrued
liabilities 483.7 472.7
Accrued
payroll
taxes
and
insurance 613.8 622.4
Value
added
taxes
payable 438.7 466.3
Short-
term
borrowings
and
current
maturities
of
long-
term
debt 44.2 45.2
Total
current
liabilities 3,451.0 3,353.8
Other liabilities:
Long-
term
debt 810.9 422.6
Other
long-
term
liabilities 563.1 461.8
Total
other
liabilities 1,374.0 884.4
Shareholders' equity:
ManpowerGroup shareholders' equity
Common
stock 1.2 1.1
Capital
in
excess
of par
value 3,186.7 3,084.2
Retained
earnings 1,966.0 1,667.8
Accumulated
other
comprehensive
loss (286.0) (155.2)
Treasury
stock,
at cost (2,243.2) (1,654.9)
Total
ManpowerGroup
shareholders'
equity 2,624.7 2,943.0
------- -------
Noncontrolling
interests 67.8 -
Total
shareholders'
equity 2,692.5 2,943.0
Total
liabilities
and
shareholders'
equity $7,517.5 $7,181.2
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Year Ended
December 31
-----------
2015 2014
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $419.2 $427.6
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and
amortization 77.7 83.8
Deferred income taxes 91.2 54.0
Provision for doubtful
accounts 16.3 18.9
Share-based
compensation 31.1 40.6
Excess tax benefit on
exercise of share-
based awards (7.4) (4.5)
Changes in operating assets and liabilities,
excluding
the impact of acquisitions:
Accounts receivable (369.8) (270.5)
Other assets (59.7) (198.7)
Other liabilities 312.9 155.0
Cash provided by
operating activities 511.5 306.2
----- -----
Cash Flows from Investing Activities:
Capital expenditures (52.3) (51.5)
Acquisitions of
businesses, net of
cash acquired (260.5) (32.0)
Proceeds from sales of
investments, property
and equipment 14.7 2.1
Cash used in investing
activities (298.1) (81.4)
------ -----
Cash Flows from Financing Activities:
Net change in short-
term borrowings 4.1 16.0
Proceeds from long-
term debt 454.0 -
Repayments of long-
term debt (2.0) (2.6)
Payments for debt
issuance costs (2.5) -
Proceeds from share-
based awards and other
equity transactions 104.1 25.5
Other share-based
award transactions,
net (0.7) (6.3)
Repurchases of common
stock (580.2) (143.5)
Dividends paid (121.0) (77.3)
Cash used in financing
activities (144.2) (188.2)
------ ------
Effect of exchange rate
changes on cash (37.9) (75.0)
Change in cash and cash
equivalents 31.3 (38.4)
Cash and cash
equivalents, beginning
of period 699.2 737.6
Cash and cash
equivalents, end of
period $730.5 $699.2
====== ======
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SOURCE ManpowerGroup
