Click here to close now.




















Welcome!

News Feed Item

ManpowerGroup Reports 4th Quarter and Full Year 2013 Results

MILWAUKEE, Jan. 30, 2014 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported net earnings of $1.25 per diluted share for the three months ended December 31, 2013 compared to 68 cents per diluted share in the prior period. The net earnings in the quarter were $101.2 million compared to $53.3 million a year earlier. Revenues for the fourth quarter totaled $5.3 billion, an increase of 1 percent from the year earlier period in U.S. dollars and constant currency.

(Logo: http://photos.prnewswire.com/prnh/20110330/CG73938LOGO-a)

Included in the current 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). Included in the prior year fourth quarter is a restructuring charge of $26.6 million ($18.3 million after tax or 23 cents per diluted share). Excluding these charges, net earnings per diluted share for the three months ended December 31, 2013 increased 64 percent to $1.49 per share compared to 91 cents per share in the year earlier period. Fourth quarter results were favorably impacted by 1 cent per diluted share as foreign currencies were relatively stronger compared to the prior year.

ManpowerGroup Chairman and CEO, Jeff Joerres, said: "The fourth quarter was a good quarter with solid performances from many of our major geographies and business units. Our team continues to execute very well which is contributing nicely to our cost recalibration efforts. We were able to achieve the upper end of our revenue targets as we are experiencing a slightly more positive environment, particularly in Europe. This said, while we are gaining increased confidence we remain guarded on revenue growth in the first quarter.

"We are anticipating diluted earnings per share in the first quarter of 2014 to be in the range of 62 to 70 cents," Joerres stated.

Net earnings per diluted share for the year ended December 31, 2013 was $3.62 compared to $2.47 per diluted share in 2012. Net earnings were $288.0 million compared to $197.6 million in the prior year. Revenues for the year were $20.3 billion, a decrease of 2 percent from the prior year in U.S. dollars and constant currency.

Earnings for the full year 2013 include restructuring costs of 82 cents per diluted share. Earnings in the prior year include restructuring costs and legal settlement costs of 48 cents per diluted share. Excluding these charges, net earnings per diluted share for 2013 increased 51 percent to $4.44 per share compared to $2.95 the prior year. Additionally, 2013 results were unfavorably impacted by 1 cent 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, 2014 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 leader in innovative workforce solutions that ensure the talent sustainability of the world's workforce for the good of companies, communities, countries, and individuals themselves. Specializing in solutions that help organizations achieve business agility and workforce flexibility, ManpowerGroup leverages its 65 years of world of work expertise to create the work models, design the people practices and access the talent sources its clients need for the future. From staffing, recruitment, workforce consulting, outsourcing and career management to assessment, training and development, ManpowerGroup delivers the talent to drive the innovation and productivity of organizations in a world where talentism is the dominant economic system. Every day, ManpowerGroup connects more than 600,000 people to work and builds their experience and employability through its relationships with 400,000 clients across 79 countries and territories. ManpowerGroup's suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. ManpowerGroup was named one of the World's Most Ethical Companies for the third consecutive year in 2013, confirming our position as the most trusted brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible at www.manpowergroup.com. Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: Twitter.com/manpowergroupjj

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, 2012, 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


2013

2012

Reported

Currency


(Unaudited)

Revenues from services (a)

$5,252.1

$5,202.6

1.0%

0.7%






Cost of services 

4,365.5

4,325.9

0.9%

0.7%






  Gross profit

886.6

876.7

1.1%

0.9%






Selling and administrative expenses

719.6

771.8

-6.8%

-6.8%






  Operating profit

167.0

104.9

59.1%

57.4%






Interest and other expenses

9.2

10.1

-9.7%







  Earnings before income taxes

157.8

94.8

66.5%

64.5%






Provision for income taxes

56.6

41.5

36.4%







  Net earnings

$   101.2

$     53.3

90.0%

88.5%






Net earnings per share - basic

$     1.28

$     0.68

88.2%







Net earnings per share - diluted

$     1.25

$     0.68

83.8%

82.4%






Weighted average shares - basic

79.3

78.1

1.5%







Weighted average shares - diluted 

80.8

78.6

2.8%







(a)

Revenues from services include fees received from our franchise offices of $6.4 million and $6.0 million for the three months ended December 31, 2013 and 2012, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $276.7 million and $257.4 million for the three months ended December 31, 2013 and 2012, respectively.

 

ManpowerGroup

Operating Unit Results

(In millions)







Three Months Ended December 31




% Variance




Amount

Constant


2013

2012

Reported

Currency


(Unaudited)

Revenues from Services:





  Americas:





      United States  (b)

$   750.6

$   750.7

0.0%

0.0%

      Other Americas

387.1

405.4

-4.5%

2.5%


1,137.7

1,156.1

-1.6%

0.9%

  Southern Europe:





      France

1,398.4

1,314.2

6.4%

1.4%

      Italy

281.6

268.5

4.9%

0.0%

      Other Southern Europe

240.2

194.0

23.9%

17.3%


1,920.2

1,776.7

8.1%

2.9%






  Northern Europe

1,521.6

1,487.2

2.3%

0.8%

  APME

590.5

697.7

-15.4%

-4.9%

  Right Management 

82.1

84.9

-3.3%

-2.3%


$5,252.1

$5,202.6

1.0%

0.7%






Operating Unit Profit: (a)





  Americas:





      United States

$     27.5

$     21.7

26.8%

26.8%

      Other Americas

11.9

13.9

-13.8%

-8.8%


39.4

35.6

10.9%

12.9%

  Southern Europe:





      France

69.9

35.7

95.5%

86.4%

      Italy

16.7

8.9

88.3%

79.3%

      Other Southern Europe

4.4

1.4

210.3%

193.3%


91.0

46.0

97.7%

88.4%






  Northern Europe

45.6

34.2

33.2%

32.0%

  APME

16.6

28.5

-42.1%

-34.6%

  Right Management 

6.5

8.2

-20.7%

-20.5%


199.1

152.5



Corporate expenses

(23.3)

(38.3)



Intangible asset amortization expense

(8.8)

(9.3)



    Operating profit

167.0

104.9

59.1%

57.4%

Interest and other expenses (c)

(9.2)

(10.1)



    Earnings before income taxes

$   157.8

$     94.8








(a)

On a consolidated basis, the French business tax is reported in provision for income taxes, in accordance with the current accounting guidance on income taxes.  Prior to the second quarter of 2013, we internally reviewed the financial results of our French operations including the French business tax within OUP given the operational nature of these taxes.  While we continue to view this tax as operational, during the second quarter of 2013 we changed our internal reporting to exclude the French business tax from the OUP of our France reportable segment.  Therefore our France reportable segment OUP now excludes the business tax and we no longer need to show the business tax amount separately to reconcile to the consolidated results. All previously reported segment results have been restated to conform to the current year presentation.  This change in segment reporting has no impact on our reporting of consolidated results.



(b)

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, 2013 and 2012, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $183.6 million and $170.9 million for the three months ended December 31, 2013 and 2012, respectively.



(c)

The components of interest and other expenses were:





2013

2012



        Interest expense

$      8.2

$     10.7



        Interest income

(1.0)

(1.9)



        Foreign exchange losses

0.8

0.3



        Miscellaneous expenses, net

1.2

1.0




$      9.2

$     10.1



 

ManpowerGroup

Results of Operations

(In millions, except per share data)







Year Ended December 31




% Variance




Amount

Constant


2013

2012

Reported

Currency


(Unaudited)

Revenues from services (a)

$20,250.5

$20,678.0

-2.1%

-2.1%






Cost of services

16,883.8

17,236.0

-2.0%

-2.0%






  Gross profit

3,366.7

3,442.0

-2.2%

-2.1%






Selling and administrative expenses

2,854.8

3,030.3

-5.8%

-5.7%






  Operating profit

511.9

411.7

24.3%

24.3%






Interest and other expenses

36.4

43.3

-15.9%







  Earnings before income taxes

475.5

368.4

29.1%

28.9%






Provision for income taxes

187.5

170.8

9.8%







  Net earnings

$     288.0

$     197.6

45.8%

46.4%






Net earnings per share - basic

$      3.69

$      2.49

48.2%







Net earnings per share - diluted

$      3.62

$      2.47

46.6%

47.0%






Weighted average shares - basic

78.0

79.5

-1.8%







Weighted average shares - diluted

79.6

80.1

-0.7%







(a)

Revenues from services include fees received from our franchise offices of $24.4 million and $23.9 million for the years ended December 31, 2013 and 2012, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,069.1 million and $1,051.8 million for the years ended December 31, 2013 and 2012, respectively.

 

ManpowerGroup

Operating Unit Results

(In millions)







Year Ended December 31




% Variance




Amount

Constant


2013

2012

Reported

Currency


(Unaudited)

Revenues from Services:





  Americas:





      United States  (b)

$  2,967.0

$  3,010.5

-1.4%

-1.4%

      Other Americas

1,543.2

1,585.4

-2.7%

1.2%


4,510.2

4,595.9

-1.9%

-0.5%

  Southern Europe:





      France

5,284.9

5,425.6

-2.6%

-5.8%

      Italy

1,087.6

1,056.8

2.9%

-0.3%

      Other Southern Europe

864.5

768.5

12.5%

7.9%


7,237.0

7,250.9

-0.2%

-3.6%






  Northern Europe

5,738.8

5,773.9

-0.6%

-1.7%

  APME

2,447.7

2,728.8

-10.3%

-1.4%

  Right Management 

316.8

328.5

-3.6%

-2.1%


$20,250.5

$20,678.0

-2.1%

-2.1%






Operating Unit Profit: (a)





  Americas:





      United States

$      99.8

$      60.8

64.2%

64.2%

      Other Americas

43.9

50.6

-13.1%

-11.5%


143.7

111.4

29.0%

29.8%

  Southern Europe:





      France

198.9

129.6

53.4%

48.0%

      Italy

53.8

45.4

18.5%

14.8%

      Other Southern Europe

11.9

10.1

18.1%

11.6%


264.6

185.1

42.9%

37.9%






  Northern Europe

139.7

159.8

-12.6%

-13.1%

  APME

70.8

90.7

-22.0%

-13.3%

  Right Management 

20.4

13.4

52.3%

59.6%


639.2

560.4



Corporate expenses

(93.2)

(112.0)



Intangible asset amortization expense

(34.1)

(36.7)



    Operating profit

511.9

411.7

24.3%

24.3%

Interest and other expenses (c)

(36.4)

(43.3)



    Earnings before income taxes

$     475.5

$     368.4








(a)

On a consolidated basis, the French business tax is reported in provision for income taxes, in accordance with the current accounting guidance on income taxes.  Prior to the second quarter of 2013, we internally reviewed the financial results of our French operations including the French business tax within OUP given the operational nature of these taxes.  While we continue to view this tax as operational, during the second quarter of 2013 we changed our internal reporting to exclude the French business tax from the OUP of our France reportable segment.  Therefore our France reportable segment OUP now excludes the business tax and we no longer need to show the business tax amount separately to reconcile to the consolidated results. All previously reported segment results have been restated to conform to the current year presentation.  This change in segment reporting has no impact on our reporting of consolidated results.



(b)

In the United States, revenues from services include fees received from our franchise offices of $15.2 million and $14.6 million for the years ended December 31, 2013 and 2012, respectively.  These fees are primarily based on revenues generated by the franchise offices, which were $695.6 million and $691.7 million for the years ended December 31, 2013 and 2012, respectively.



(c)

The components of interest and other expenses were:





2013

2012



        Interest expense

$      37.1

$      41.8



        Interest income

(3.7)

(6.6)



        Foreign exchange losses

2.3

0.9



        Miscellaneous expenses, net

0.7

7.2




$      36.4

$      43.3



 

ManpowerGroup

Consolidated Balance Sheets

(In millions)






Dec. 31


Dec. 31


2013


2012


(Unaudited)

ASSETS




Current assets:




  Cash and cash equivalents

$   737.6


$   648.1

  Accounts receivable, net

4,277.9


4,179.0

  Prepaid expenses and other assets

161.3


172.9

  Future income tax benefits

66.2


60.6

      Total current assets

5,243.0


5,060.6





Other assets:




  Goodwill and other intangible assets, net

1,400.0


1,371.9

  Other assets

479.3


395.3

      Total other assets

1,879.3


1,767.2





Property and equipment:




  Land, buildings, leasehold improvements and equipment

706.2


704.1

  Less:  accumulated depreciation and amortization

540.2


519.3

    Net property and equipment

166.0


184.8

        Total assets

$7,288.3


$7,012.6





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




  Accounts payable

$1,523.9


$1,466.5

  Employee compensation payable

230.4


210.7

  Accrued liabilities

536.1


533.8

  Accrued payroll taxes and insurance

680.7


685.7

  Value added taxes payable

502.5


472.5

  Short-term borrowings and current maturities of long-term debt

36.0


308.0

      Total current liabilities

3,509.6


3,677.2





Other liabilities:




  Long-term debt

481.9


462.1

  Other long-term liabilities

382.6


372.5

      Total other liabilities

864.5


834.6





Shareholders' equity:




  Common stock

1.1


1.1

  Capital in excess of par value

3,014.0


2,873.2

  Retained earnings 

1,317.5


1,101.5

  Accumulated other comprehensive income

82.2


34.4

  Treasury stock, at cost

(1,500.6)


(1,509.4)

      Total shareholders' equity

2,914.2


2,500.8

        Total liabilities and shareholders' equity

$7,288.3


$7,012.6

 

ManpowerGroup

Consolidated Statements of Cash Flows

(In millions)






Year Ended


December 31


2013


2012


(Unaudited)

Cash Flows from Operating Activities:




  Net earnings

$288.0


$197.6

  Adjustments to reconcile net earnings to net




    cash provided by operating activities:




      Depreciation and amortization

94.3


100.5

      Deferred income taxes

17.0


(11.6)

      Provision for doubtful accounts

24.1


29.2

      Share-based compensation

31.5


30.0

      Excess tax benefit on exercise of share-based awards

(7.3)


(0.3)

  Changes in operating assets and liabilities, excluding




    the impact of acquisitions:




      Accounts receivable

(82.6)


48.3

      Other assets

(35.9)


(9.2)

      Other liabilities

67.6


(52.9)

            Cash provided by operating activities

396.7


331.6





Cash Flows from Investing Activities:




  Capital expenditures

(44.7)


(72.0)

  Acquisitions of businesses, net of cash acquired

(46.3)


(49.0)

  Proceeds from sales of property and equipment

3.4


3.7

            Cash used in investing activities

(87.6)


(117.3)





Cash Flows from Financing Activities:




  Net change in short-term borrowings

(5.7)


(6.7)

  Proceeds from long-term debt

3.9


751.6

  Repayments of long-term debt

(269.5)


(703.2)

  Proceeds from share-based awards

101.0


6.0

  Other share-based award transactions, net

16.1


(6.3)

  Repurchases of common stock

-


(138.2)

  Dividends paid

(72.0)


(67.8)

            Cash used in financing activities

(226.2)


(164.6)





Effect of exchange rate changes on cash

6.6


17.9

Change in cash and cash equivalents

89.5


67.6





Cash and cash equivalents, beginning of period

648.1


580.5

Cash and cash equivalents, end of period

$737.6


$648.1

SOURCE ManpowerGroup

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...