MANPOWERGROUP INC. MILWAUKEE, Jan. 31, 2017 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported net earnings of $1.87 per diluted share for the three months ended December 31, 2016 compared to $1.66 per diluted share in the prior year period. The net earnings in the quarter were $127.4 million compared to $123.9 million a year earlier. Revenues for the fourth quarter totaled $5.0 billion, which was equal to the year earlier period.
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, revenues increased 3% and net earnings per diluted share increased 17%. Earnings per share were negatively impacted 7 cents by changes in foreign currencies compared to the prior year. The quarter included a favorable impact due to an insurance settlement which increased earnings per share by 7 cents.
Jonas Prising, ManpowerGroup Chairman & CEO, said: "We are very pleased with our strong performance in the 4th quarter, with improving top line growth and strong bottom line performance, capping off a solid year, despite the uneven and slow growth environment in 2016.
"Our clients appreciate the breadth, global scale and innovation of our services and solutions, helping them reach their business objectives in an uncertain environment. The workforce solutions we provide to our clients also help millions of individuals enhance their employability and skills. Those are the fundamental drivers of our confidence in our continued business progress and our passion for sustainable and meaningful employment wherever we are in the world. We look forward to building on our progress in 2017, helping our clients and candidates win in the changing world of work.
"We are anticipating diluted earnings per share in the first quarter 2017 to be in the range of $1.06 to $1.14 which includes an estimated unfavorable currency impact of 5 cents." Prising stated.
Net earnings per diluted share for the year ended December 31, 2016 was $6.27 compared to $5.40 per diluted share in 2015. Net earnings were $443.7 million compared to $419.2 million in the prior year. Revenues for the year were $19.7 billion, an increase of 2% in U.S. dollars from the prior year and an increase of 4% in constant currency.
2016 earnings were unfavorably impacted by 15 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 31, 2017 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://investor.manpower.com/
Supplemental financial information referenced in the conference call can be found at http://investor.manpower.com/
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 December 31
------------------------------
% Variance
----------
Amount Constant
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $4,956.1 $4,953.9 0.0% 3.2%
Cost of services 4,115.1 4,102.8 0.3% 3.6%
------- -------
Gross profit 841.0 851.1 -1.2% 1.6%
Selling and
administrative
expenses 629.0 670.0 -6.1% -3.6%
----- -----
Operating profit 212.0 181.1 17.1% 21.1%
Interest and other
expenses 15.1 1.0
---- ---
Earnings before
income taxes 196.9 180.1 9.3% 13.1%
Provision for
income taxes 69.5 56.2 23.7%
Net earnings $127.4 $123.9 2.8% 6.6%
====== ======
Net earnings per
share -basic $1.89 $1.67 13.2%
===== =====
Net earnings per
share -diluted $1.87 $1.66 12.7% 16.9%
===== =====
Weighted average
shares -basic 67.5 74.1 -8.9%
==== ====
Weighted average
shares -diluted 68.3 74.9 -8.7%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $6.1
million for both the three
months ended December 31, 2016
and 2015. These fees are
primarily based on revenues
generated by the franchise
offices, which were $257.8
million and $269.7 million for
the three months ended December
31, 2016 and 2015,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Three Months Ended December 31
------------------------------
% Variance
----------
Amount Constant
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $684.7 $748.5 -8.5% -8.5%
Other Americas 378.2 391.8 -3.5% 8.3%
1,062.9 1,140.3 -6.8% -2.7%
------- -------
Southern Europe:
France 1,228.6 1,175.4 4.5% 6.1%
Italy 305.8 312.3 -2.1% -0.6%
Other Southern
Europe 377.8 359.8 5.0% 6.1%
1,912.2 1,847.5 3.5% 5.0%
------- -------
Northern Europe 1,292.8 1,316.7 -1.8% 6.2%
APME 629.6 579.2 8.7% 4.7%
Right Management 58.6 70.2 -16.5% -14.5%
$4,956.1 $4,953.9 0.0% 3.2%
======== ========
Operating Unit Profit:
Americas:
United States $39.1 $39.2 -0.3% -0.3%
Other Americas 14.2 16.5 -13.6% 1.6%
53.3 55.7 -4.2% 0.3%
---- ----
Southern Europe:
France 67.0 66.7 0.4% 2.2%
Italy 21.8 19.6 11.1% 12.6%
Other Southern
Europe 13.1 10.8 22.1% 23.1%
101.9 97.1 5.0% 6.6%
----- ----
Northern Europe 48.8 36.1 35.3% 45.3%
APME 21.7 18.1 18.0% 13.9%
Right Management 11.9 10.3 16.2% 20.4%
237.6 217.3
Corporate expenses (16.6) (26.5)
Intangible asset
amortization
expense (9.0) (9.7)
Operating profit 212.0 181.1 17.1% 21.1%
Interest and other
expenses (b) (15.1) (1.0)
Earnings before
income taxes $196.9 $180.1
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $4.0 million and
$3.7 million for the three
months ended December 31, 2016
and 2015, respectively. These
fees are primarily based on
revenues generated by the
franchise offices, which were
$174.5 million for both the
three months ended December 31,
2016 and 2015.
(b) The components of interest
and other expenses were:
2016 2015
---- ----
Interest expense $10.0 $10.6
Interest income (1.1) (0.6)
Foreign exchange loss (gain) 1.2 (5.2)
Miscellaneous expense (income), net 5.0 (3.8)
$15.1 $1.0
===== ====
ManpowerGroup
Results of Operations
(In millions, except per share data)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from
services (a) $19,654.1 $19,329.9 1.7% 4.1%
Cost of services 16,320.3 16,034.1 1.8% 4.3%
-------- --------
Gross profit 3,333.8 3,295.8 1.2% 3.3%
Selling and
administrative
expenses 2,583.0 2,606.9 -0.9% 1.1%
------- -------
Operating profit 750.8 688.9 9.0% 11.4%
Interest and other
expenses 49.5 28.2
---- ----
Earnings before
income taxes 701.3 660.7 6.1% 8.5%
Provision for
income taxes 257.6 241.5 6.7%
Net earnings $443.7 $419.2 5.8% 8.4%
====== ======
Net earnings per
share -basic $6.33 $5.46 15.9%
===== =====
Net earnings per
share -diluted $6.27 $5.40 16.1% 18.9%
===== =====
Weighted average
shares -basic 70.1 76.8 -8.8%
==== ====
Weighted average
shares -diluted 70.8 77.7 -8.9%
==== ====
(a) Revenues from services include
fees received from our
franchise offices of $23.3
million and $24.2 million for
the years ended December 31,
2016 and 2015, respectively.
These fees are primarily based
on revenues generated by the
franchise offices, which were
$1,019.9 million and $1,082.3
million for the years ended
December 31, 2016 and 2015,
respectively.
ManpowerGroup
Operating Unit Results
(In millions)
Year Ended December 31
----------------------
% Variance
----------
Amount Constant
2016 2015 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United
States
(a) $2,836.8 $3,005.8 -5.6% -5.6%
Other
Americas 1,460.4 1,486.2 -1.7% 14.1%
4,297.2 4,492.0 -4.3% 0.9%
------- -------
Southern Europe:
France 4,837.4 4,661.3 3.8% 4.0%
Italy 1,167.7 1,226.1 -4.8% -4.5%
Other
Southern
Europe 1,492.5 1,404.1 6.3% 6.5%
7,497.6 7,291.5 2.8% 3.0%
------- -------
Northern
Europe 5,129.1 5,033.7 1.9% 7.3%
APME 2,471.3 2,239.1 10.4% 8.1%
Right
Management 258.9 273.6 -5.4% -3.4%
$19,654.1 $19,329.9 1.7% 4.1%
========= =========
Operating Unit Profit:
Americas:
United
States $142.9 $143.8 -0.7% -0.7%
Other
Americas 53.6 57.0 -5.9% 10.4%
196.5 200.8 -2.1% 2.5%
----- -----
Southern Europe:
France 250.6 258.8 -3.2% -3.1%
Italy 79.1 70.9 11.6% 11.6%
Other
Southern
Europe 47.2 39.9 18.4% 18.3%
376.9 369.6 2.0% 2.0%
----- -----
Northern
Europe 173.0 144.7 19.6% 25.4%
APME 88.5 79.3 11.5% 9.1%
Right
Management 44.7 38.3 16.7% 18.8%
879.6 832.7
Corporate
expenses (92.8) (111.0)
Intangible
asset
amortization
expense (36.0) (32.8)
Operating
profit 750.8 688.9 9.0% 11.4%
Interest
and
other
expenses
(b) (49.5) (28.2)
Earnings
before
income
taxes $701.3 $660.7
====== ======
(a) In the United States, revenues
from services include fees
received from our franchise
offices of $15.1 million and
$15.2 million for the years
ended December 31, 2016 and
2015, respectively. These fees
are primarily based on revenues
generated by the franchise
offices, which were $686.0
million and $714.1 million for
the years ended December 31,
2016 and 2015, respectively.
(b) The components of interest
and other expenses were:
2016 2015
---- ----
Interest expense $37.9 $36.0
Interest income (3.6) (2.5)
Foreign exchange loss (gain) 2.8 (4.7)
Miscellaneous expense (income), net 12.4 (0.6)
$49.5 $28.2
===== =====
ManpowerGroup
Consolidated Balance Sheets
(In millions)
Dec. 31 Dec. 31
2016 2015
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and
cash
equivalents $598.5 $730.5
Accounts
receivable,
net 4,413.1 4,243.0
Prepaid
expenses
and
other
assets 121.3 119.0
Total
current
assets 5,132.9 5,092.5
Other assets:
Goodwill 1,239.9 1,257.4
Intangible
assets,
net 294.4 326.5
Other
assets 759.7 694.0
Total
other
assets 2,294.0 2,277.9
Property and equipment:
Land,
buildings,
leasehold
improvements
and
equipment 567.0 585.4
Less:
accumulated
depreciation
and
amortization 419.7 438.3
Net
property
and
equipment 147.3 147.1
Total
assets $7,574.2 $7,517.5
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts
payable $1,914.4 $1,659.2
Employee
compensation
payable 208.1 211.4
Accrued
liabilities 398.6 483.7
Accrued
payroll
taxes
and
insurance 649.2 613.8
Value
added
taxes
payable 448.7 438.7
Short-
term
borrowings
and
current
maturities
of long-
term
debt 39.8 44.2
Total
current
liabilities 3,658.8 3,451.0
Other liabilities:
Long-
term
debt 785.6 810.9
Other
long-
term
liabilities 683.4 563.1
Total
other
liabilities 1,469.0 1,374.0
Shareholders' equity:
ManpowerGroup shareholders' equity
Common
stock 1.2 1.2
Capital
in
excess
of par
value 3,227.2 3,186.7
Retained
earnings 2,291.3 1,966.0
Accumulated
other
comprehensive
loss (426.1) (286.0)
Treasury
stock,
at cost (2,731.7) (2,243.2)
Total
ManpowerGroup
shareholders'
equity 2,361.9 2,624.7
------- -------
Noncontrolling
interests 84.5 67.8
Total
shareholders'
equity 2,446.4 2,692.5
Total
liabilities
and
shareholders'
equity $7,574.2 $7,517.5
======== ========
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
Year Ended
December 31
-----------
2016 2015
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $443.7 $419.2
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 85.3 77.7
Deferred income taxes 74.0 91.2
Provision for doubtful accounts 20.4 16.3
Share-based compensation 27.1 31.1
Excess tax benefit on exercise of share-based awards (0.8) (7.4)
Changes in operating assets and liabilities, excluding
the impact of acquisitions:
Accounts receivable (317.2) (369.8)
Other assets (75.3) (59.7)
Other liabilities 342.8 312.9
Cash provided by operating activities 600.0 511.5
----- -----
Cash Flows from Investing Activities:
Capital expenditures (56.9) (52.3)
Acquisitions of businesses, net of cash acquired (57.6) (260.5)
Proceeds from sales of investments, property and equipment 4.1 14.7
Cash used in investing activities (110.4) (298.1)
------ ------
Cash Flows from Financing Activities:
Net change in short-term borrowings (0.3) 4.1
Proceeds from long-term debt - 454.0
Repayments of long-term debt (6.4) (2.0)
Payments for debt issuance costs - (2.5)
Payments of contingent consideration for acquisitions (2.9) -
Proceeds from share-based awards and other equity transactions 18.0 104.1
Other share-based award transactions (5.4) (0.7)
Repurchases of common stock (482.2) (580.2)
Dividends paid (118.4) (121.0)
Cash used in financing activities (597.6) (144.2)
------ ------
Effect of exchange rate changes on cash (24.0) (37.9)
Change in cash and cash equivalents (132.0) 31.3
Cash and cash equivalents, beginning of period 730.5 699.2
Cash and cash equivalents, end of period $598.5 $730.5
====== ======
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SOURCE ManpowerGroup
