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
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...