Welcome!

News Feed Item

ManpowerGroup Reports 1st Quarter 2014 Results

MILWAUKEE, April 23, 2014 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2014 were $70.1 million, or 86 cents per diluted share, compared to net earnings of $23.9 million, or 31 cents per diluted share, a year earlier. Revenues for the first quarter were $4.9 billion, an increase of 3% from the prior year period.

Included in the prior year first quarter results is a restructuring charge, primarily related to office consolidations and severance costs of $34.8 million ($25.3 million after tax or 32 cents per diluted share). There were no restructuring charges in the current year quarter. Net earnings in the first quarter were negatively impacted by 1 cent per diluted share, as certain foreign currencies were slightly weaker compared to the prior year period.

Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "Despite the slow start in January, we are experiencing more positive revenue trends as we enter the second quarter in almost all of the major geographies. Growth in our Europe business improved to over 4 percent in constant currency in the quarter, and exceeded 3 percent on an average daily basis.

"The work that our team did last year to simplify and re-calibrate our company is paying off as we were able to achieve strong flow through and operational leverage.

"We anticipate second quarter earnings per share will range between $1.26 to $1.34, which includes an estimated favorable 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 23, 2014 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 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 80 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 fourth consecutive year in 2014, 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, 2013, 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


2014

2013

Reported

Currency


(Unaudited)

Revenues from services (a)

$4,904.0

$4,768.9

2.8%

3.0%






Cost of services 

4,087.5

3,978.8

2.7%

2.9%






  Gross profit

816.5

790.1

3.3%

3.6%






Selling and administrative expenses

689.6

735.7

-6.3%

-6.1%






  Operating profit

126.9

54.4

133.4%

134.6%






Interest and other expenses

9.2

11.5

-19.7%







  Earnings before income taxes

117.7

42.9

174.3%

175.5%






Provision for income taxes

47.6

19.0

150.6%







  Net earnings

$     70.1

$     23.9

193.2%

196.5%






Net earnings per share - basic

$     0.88

$     0.31

183.9%







Net earnings per share - diluted

$     0.86

$     0.31

177.4%

180.6%






Weighted average shares - basic

79.8

77.1

3.5%







Weighted average shares - diluted 

81.2

78.2

3.8%


(a)

Revenues from services include fees received from our franchise offices of $5.5 million and $5.3 million for the three months ended March 31, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $256.6 million and $234.7 million for the three months ended March 31, 2014 and 2013, respectively.

 

ManpowerGroup

Operating Unit Results

(In millions)







Three Months Ended March 31




% Variance




Amount

Constant


2014

2013

Reported

Currency


(Unaudited)

Revenues from Services:





  Americas:





      United States  (b)

$   720.5

$   706.1

2.1%

2.1%

      Other Americas

350.6

386.9

-9.4%

3.6%


1,071.1

1,093.0

-2.0%

2.6%

  Southern Europe:





      France

1,217.3

1,145.2

6.3%

2.3%

      Italy

274.7

257.9

6.5%

2.5%

      Other Southern Europe

230.0

193.4

18.9%

14.7%


1,722.0

1,596.5

7.9%

3.8%






  Northern Europe

1,463.9

1,370.3

6.8%

4.6%

  APME

573.7

632.5

-9.3%

-1.1%

  Right Management 

73.3

76.6

-4.3%

-4.0%


$4,904.0

$4,768.9

2.8%

3.0%






Operating Unit Profit: (a)





  Americas:





      United States

$     13.4

$      7.4

81.2%

81.2%

      Other Americas

12.6

8.7

43.8%

64.6%


26.0

16.1

61.0%

72.2%

  Southern Europe:





      France

51.2

29.7

72.0%

65.0%

      Italy

12.6

11.7

7.8%

3.4%

      Other Southern Europe

4.6

2.3

97.5%

90.0%


68.4

43.7

56.2%

49.9%






  Northern Europe

38.4

10.6

261.4%

256.7%

  APME

20.2

14.8

38.1%

52.4%

  Right Management 

8.3

2.0

305.7%

303.8%


161.3

87.2



Corporate expenses

(26.2)

(24.4)



Intangible asset amortization expense

(8.2)

(8.4)



    Operating profit

126.9

54.4

133.4%

134.6%

Interest and other expenses (c)

(9.2)

(11.5)



    Earnings before income taxes

$   117.7

$     42.9



(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, we are no longer required 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 $3.4 million and $3.2 million for the three months ended March 31, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $169.1 million and $155.1 million for the three months ended March 31, 2014 and 2013, respectively.



(c)

The components of interest and other expenses were:









2014

2013




Interest expense

$      8.6

$     10.7




Interest income

(0.9)

(0.9)




Foreign exchange (gain) loss 

(1.2)

0.4




Miscellaneous expenses, net

2.7

1.3





$      9.2

$     11.5



   

ManpowerGroup

Consolidated Balance Sheets

(In millions)



Mar. 31


Dec. 31


2014


2013


(Unaudited)

ASSETS




Current assets:




  Cash and cash equivalents

$   696.5


$   737.6

  Accounts receivable, net

4,244.1


4,277.9

  Prepaid expenses and other assets

142.8


161.3

  Future income tax benefits

67.2


66.2

      Total current assets

5,150.6


5,243.0





Other assets:




  Goodwill and other intangible assets, net

1,411.4


1,400.0

  Other assets

557.2


479.3

      Total other assets

1,968.6


1,879.3





Property and equipment:




  Land, buildings, leasehold improvements and equipment

709.5


706.2

  Less:  accumulated depreciation and amortization

548.7


540.2

    Net property and equipment

160.8


166.0

        Total assets

$7,280.0


$7,288.3





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




  Accounts payable

$1,579.0


$1,523.9

  Employee compensation payable

184.3


230.4

  Accrued liabilities

561.3


536.1

  Accrued payroll taxes and insurance

578.0


680.7

  Value added taxes payable

476.4


502.5

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

45.4


36.0

      Total current liabilities

3,424.4


3,509.6





Other liabilities:




  Long-term debt

484.3


481.9

  Other long-term liabilities

395.5


382.6

      Total other liabilities

879.8


864.5





Shareholders' equity:




  Common stock

1.1


1.1

  Capital in excess of par value

3,032.6


3,014.0

  Retained earnings 

1,387.6


1,317.5

  Accumulated other comprehensive income

82.1


82.2

  Treasury stock, at cost

(1,527.6)


(1,500.6)

      Total shareholders' equity

2,975.8


2,914.2

        Total liabilities and shareholders' equity

$7,280.0


$7,288.3

 

ManpowerGroup

Consolidated Statements of Cash Flows

(In millions)






Three Months Ended


March 31


2014


2013


(Unaudited)

Cash Flows from Operating Activities:




  Net earnings

$  70.1


$  23.9

  Adjustments to reconcile net earnings to net




    cash provided by operating activities:




      Depreciation and amortization

21.6


24.2

      Deferred income taxes

(1.5)


2.7

      Provision for doubtful accounts

6.6


5.9

      Share-based compensation

10.8


6.5

      Excess tax benefit on exercise of share-based awards

(2.2)


(0.3)

  Changes in operating assets and liabilities, excluding




    the impact of acquisitions:




      Accounts receivable

27.8


20.2

      Other assets

(55.8)


(17.1)

      Other liabilities

(92.9)


(128.3)

            Cash used in operating activities

(15.5)


(62.3)





Cash Flows from Investing Activities:




  Capital expenditures

(8.3)


(12.8)

  Acquisitions of businesses, net of cash acquired

(9.4)


-

  Proceeds from sales of property and equipment

-


0.6

            Cash used in investing activities

(17.7)


(12.2)





Cash Flows from Financing Activities:




  Net change in short-term borrowings

13.3


2.2

  Repayments of long-term debt

(0.6)


(0.3)

  Proceeds from share-based awards

6.0


10.2

  Other share-based award transactions, net

(8.2)


1.0

  Repurchases of common stock

(16.7)


-

            Cash (used in) provided by financing activities

(6.2)


13.1





Effect of exchange rate changes on cash

(1.7)


(3.3)

Change in cash and cash equivalents

(41.1)


(64.7)





Cash and cash equivalents, beginning of period

737.6


648.1

Cash and cash equivalents, end of period

$696.5


$583.4

ManpowerGroup

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

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
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.