MILWAUKEE, Oct. 21, 2014 /PRNewswire/
-- ManpowerGroup (NYSE: MAN) today reported that
earnings per diluted share for the three months ended September 30, 2014 were $1.61 compared to $1.18 in the prior year period. Net earnings in
the quarter were $130.5 million
compared to $94.7 million a year
earlier. Revenues for the third quarter were $5.4 billion, an increase of 4 percent from the
year earlier period in U.S. dollars and 5 percent in constant
currency.
Included in the prior year third quarter results is a
restructuring charge, primarily related to office consolidations
and severance costs, of $8.1 million
($6.2 million after tax or
8 cents per diluted share). There
were no restructuring charges in the current year quarter. Net
earnings in the third quarter were not materially impacted by
changes in foreign currencies compared to the prior year
period.
Jonas Prising, ManpowerGroup CEO,
said, "Our third quarter results were strong, with solid revenue
and profit growth in the majority of our operations and
brands. While the economic recovery has recently become more
choppy in some markets, we are still seeing growth opportunities
and I am confident we are well positioned to deliver unique value
to our clients in these uncertain times.
"We are anticipating the fourth quarter of 2014 diluted earnings
per share to be in the range of $1.39 to
$1.47, which includes an estimated unfavorable currency
impact of 8 cents," Prising
stated.
Earnings per diluted share for the nine months ended
September 30, 2014 were $3.82 compared to $2.36 per diluted share in 2013. Net earnings
were $310.4 million compared to
$186.8 million in the prior year.
Revenues for the nine-month period were $15.6 billion, an increase of 4 percent from the
prior year in reported U.S. dollars and in constant currency.
Included in the prior year results for the nine month period are
restructuring costs of 58 cents per
diluted share. Foreign currency exchange rates had a favorable
impact of 3 cents per share for the
nine month period in 2014.
In conjunction with its third quarter earnings release,
ManpowerGroup will broadcast its conference call live over the
Internet on October 21, 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/investors.
Supplemental financial information referenced in the conference
call can be found at http://www.manpowergroup.com/investors.
About ManpowerGroup™
ManpowerGroup™ (NYSE: MAN) has been the world's workforce expert
for more than 65 years. We source, assess, develop and manage
talent across a wide range of skills and industries. Our
ManpowerGroup family of brands — Experis™, Manpower®,
ManpowerGroup™ Solutions, and Right Management ® — helps 400,000
clients in 80 countries and territories improve workforce
performance, while connecting more than 600,000 individuals to
meaningful work. 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.
www.manpowergroup.com
Forward-Looking Statements
This news release contains
statements, including earnings projections, that are
forward-looking in nature. These statements are based on
management's current expectations or beliefs, and are subject to
known and unknown 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. 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
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2014
|
2013
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
services (a)
|
$5,416.0
|
$5,188.8
|
4.4%
|
4.6%
|
|
|
|
|
|
Cost of
services
|
4,510.4
|
4,335.2
|
4.0%
|
4.3%
|
|
|
|
|
|
Gross
profit
|
905.6
|
853.6
|
6.1%
|
6.5%
|
|
|
|
|
|
Selling and
administrative expenses
|
693.3
|
691.2
|
0.3%
|
0.8%
|
|
|
|
|
|
Operating
profit
|
212.3
|
162.4
|
30.7%
|
30.6%
|
|
|
|
|
|
Interest and other
expenses
|
9.9
|
5.4
|
81.9%
|
|
|
|
|
|
|
Earnings
before income taxes
|
202.4
|
157.0
|
28.9%
|
28.5%
|
|
|
|
|
|
Provision for income
taxes
|
71.9
|
62.3
|
15.4%
|
|
|
|
|
|
|
Net
earnings
|
$ 130.5
|
$ 94.7
|
37.8%
|
37.4%
|
|
|
|
|
|
Net earnings per
share - basic
|
$ 1.64
|
$ 1.21
|
35.5%
|
|
|
|
|
|
|
Net earnings per
share - diluted
|
$ 1.61
|
$ 1.18
|
36.4%
|
35.6%
|
|
|
|
|
|
Weighted average
shares - basic
|
79.7
|
78.4
|
1.6%
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
81.1
|
80.0
|
1.5%
|
|
|
|
(a)
|
Revenues from
services include fees received from our franchise offices of $6.9
million and $6.6 million for the three months ended September
30, 2014 and 2013, respectively. These fees are primarily based on
revenues generated by the franchise offices, which were $302.0
million and $285.4 million for the three months ended September 30,
2014 and 2013, respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2014
|
2013
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$ 800.5
|
$ 761.8
|
5.1%
|
5.1%
|
Other
Americas
|
388.5
|
382.0
|
1.7%
|
9.5%
|
|
1,189.0
|
1,143.8
|
4.0%
|
6.5%
|
Southern
Europe:
|
|
|
|
|
France
|
1,454.3
|
1,420.7
|
2.4%
|
2.2%
|
Italy
|
294.1
|
269.7
|
9.0%
|
9.0%
|
Other Southern
Europe
|
259.9
|
227.9
|
14.1%
|
13.8%
|
|
2,008.3
|
1,918.3
|
4.7%
|
4.5%
|
|
|
|
|
|
Northern
Europe
|
1,554.6
|
1,448.1
|
7.4%
|
6.2%
|
APME
|
592.5
|
601.4
|
-1.5%
|
-0.7%
|
Right
Management
|
71.6
|
77.2
|
-7.2%
|
-8.0%
|
|
$5,416.0
|
$5,188.8
|
4.4%
|
4.6%
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$ 41.9
|
$ 34.3
|
21.9%
|
21.9%
|
Other
Americas
|
14.6
|
11.4
|
29.3%
|
34.8%
|
|
56.5
|
45.7
|
23.8%
|
25.1%
|
Southern
Europe:
|
|
|
|
|
France
|
84.2
|
58.4
|
44.2%
|
43.7%
|
Italy
|
14.7
|
10.7
|
37.4%
|
37.3%
|
Other Southern
Europe
|
6.1
|
4.0
|
51.4%
|
50.6%
|
|
105.0
|
73.1
|
43.6%
|
43.1%
|
|
|
|
|
|
Northern
Europe
|
59.6
|
50.3
|
18.4%
|
17.3%
|
APME
|
21.6
|
19.2
|
12.5%
|
13.7%
|
Right
Management
|
6.3
|
4.5
|
40.1%
|
38.3%
|
|
249.0
|
192.8
|
|
|
Corporate
expenses
|
(28.3)
|
(21.9)
|
|
|
Intangible asset
amortization expense
|
(8.4)
|
(8.5)
|
|
|
Operating profit
|
212.3
|
162.4
|
30.7%
|
30.6%
|
Interest and other
expenses (b)
|
(9.9)
|
(5.4)
|
|
|
Earnings before income taxes
|
$ 202.4
|
$ 157.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the
United States, revenues from services include fees received from
our franchise offices of $4.4 million and $4.2 million for the
three months ended September 30, 2014 and 2013, respectively. These
fees are primarily based on revenues generated by the franchise
offices, which were $196.3 million and $181.6 million for the three
months ended September 30, 2014 and 2013, respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses were:
|
|
|
|
2014
|
2013
|
|
|
Interest
expense
|
$ 9.6
|
$ 7.9
|
|
|
Interest
income
|
(1.4)
|
(0.9)
|
|
|
Foreign
exchange loss (gain)
|
0.7
|
(0.3)
|
|
|
Miscellaneous expense (income), net
|
1.0
|
(1.3)
|
|
|
|
$ 9.9
|
$ 5.4
|
|
|
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2014
|
2013
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
services (a)
|
$15,641.7
|
$14,998.4
|
4.3%
|
3.8%
|
|
|
|
|
|
Cost of
services
|
13,022.3
|
12,518.3
|
4.0%
|
3.5%
|
|
|
|
|
|
Gross
profit
|
2,619.4
|
2,480.1
|
5.6%
|
5.3%
|
|
|
|
|
|
Selling and
administrative expenses
|
2,092.8
|
2,135.2
|
-2.0%
|
-2.2%
|
|
|
|
|
|
Operating
profit
|
526.6
|
344.9
|
52.7%
|
51.7%
|
|
|
|
|
|
Interest and other
expenses
|
27.0
|
27.2
|
-0.9%
|
|
|
|
|
|
|
Earnings
before income taxes
|
499.6
|
317.7
|
57.3%
|
55.9%
|
|
|
|
|
|
Provision for income
taxes
|
189.2
|
130.9
|
44.6%
|
|
|
|
|
|
|
Net
earnings
|
$ 310.4
|
$ 186.8
|
66.1%
|
65.0%
|
|
|
|
|
|
Net earnings per
share - basic
|
$ 3.89
|
$ 2.41
|
61.4%
|
|
|
|
|
|
|
Net earnings per
share - diluted
|
$ 3.82
|
$ 2.36
|
61.9%
|
60.6%
|
|
|
|
|
|
Weighted average
shares - basic
|
79.8
|
77.6
|
2.8%
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
81.3
|
79.2
|
2.7%
|
|
|
|
(a)
|
Revenues from
services include fees received from our franchise offices of $18.8
million and $18.0 million for the nine months ended September
30, 2014 and 2013, respectively. These fees are primarily based on
revenues generated by the franchise offices, which were $845.2
million and $792.4 million for the nine months ended September 30,
2014 and 2013, respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2014
|
2013
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$ 2,296.9
|
$ 2,216.4
|
3.6%
|
3.6%
|
Other
Americas
|
1,114.3
|
1,156.1
|
-3.6%
|
6.9%
|
|
3,411.2
|
3,372.5
|
1.1%
|
4.8%
|
Southern
Europe:
|
|
|
|
|
France
|
4,083.7
|
3,886.5
|
5.1%
|
2.1%
|
Italy
|
882.7
|
806.0
|
9.5%
|
6.4%
|
Other Southern
Europe
|
732.9
|
624.3
|
17.4%
|
14.4%
|
|
5,699.3
|
5,316.8
|
7.2%
|
4.2%
|
|
|
|
|
|
Northern
Europe
|
4,546.3
|
4,217.2
|
7.8%
|
5.2%
|
APME
|
1,760.2
|
1,857.2
|
-5.2%
|
-1.2%
|
Right
Management
|
224.7
|
234.7
|
-4.3%
|
-4.9%
|
|
$15,641.7
|
$14,998.4
|
4.3%
|
3.8%
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$ 85.0
|
$ 72.3
|
17.5%
|
17.5%
|
Other
Americas
|
41.2
|
32.0
|
29.2%
|
40.9%
|
|
126.2
|
104.3
|
21.1%
|
24.7%
|
Southern
Europe:
|
|
|
|
|
France
|
207.3
|
129.0
|
60.7%
|
56.3%
|
Italy
|
45.6
|
37.1
|
23.1%
|
19.4%
|
Other Southern
Europe
|
16.4
|
7.5
|
117.9%
|
112.4%
|
|
269.3
|
173.6
|
55.1%
|
50.8%
|
|
|
|
|
|
Northern
Europe
|
144.2
|
94.1
|
53.2%
|
50.4%
|
APME
|
62.8
|
54.2
|
15.8%
|
21.3%
|
Right
Management
|
27.3
|
13.9
|
96.2%
|
95.4%
|
|
629.8
|
440.1
|
|
|
Corporate
expenses
|
(78.2)
|
(69.9)
|
|
|
Intangible asset
amortization expense
|
(25.0)
|
(25.3)
|
|
|
Operating profit
|
526.6
|
344.9
|
52.7%
|
51.7%
|
Interest and other
expenses (b)
|
(27.0)
|
(27.2)
|
|
|
Earnings before income taxes
|
$ 499.6
|
$ 317.7
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the
United States, revenues from services include fees received from
our franchise offices of $11.7 million and $11.2 million for the
nine months ended September 30, 2014 and 2013, respectively.
These fees are primarily based on revenues generated by the
franchise offices, which were $555.7 million and $512.0 million for
the nine months ended September 30, 2014 and 2013,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses were:
|
|
|
|
2014
|
2013
|
|
|
Interest
expense
|
$ 27.5
|
$ 28.9
|
|
|
Interest
income
|
(3.4)
|
(2.7)
|
|
|
Foreign
exchange (gain) loss
|
(1.4)
|
1.5
|
|
|
Miscellaneous expense (income), net
|
4.3
|
(0.5)
|
|
|
|
$ 27.0
|
$ 27.2
|
|
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Sep.
30
|
|
Dec.
31
|
|
2014
|
|
2013
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 660.7
|
|
$ 737.6
|
Accounts
receivable, net
|
4,381.4
|
|
4,277.9
|
Prepaid
expenses and other assets
|
120.9
|
|
161.3
|
Future income
tax benefits
|
50.7
|
|
66.2
|
Total current
assets
|
5,213.7
|
|
5,243.0
|
|
|
|
|
Other
assets:
|
|
|
|
Goodwill and
other intangible assets, net
|
1,389.8
|
|
1,400.0
|
Other
assets
|
627.4
|
|
479.3
|
Total other
assets
|
2,017.2
|
|
1,879.3
|
|
|
|
|
Property and
equipment:
|
|
|
|
Land,
buildings, leasehold improvements and equipment
|
673.4
|
|
706.2
|
Less:
accumulated depreciation and amortization
|
523.6
|
|
540.2
|
Net property and equipment
|
149.8
|
|
166.0
|
Total
assets
|
$7,380.7
|
|
$7,288.3
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$1,601.9
|
|
$1,523.9
|
Employee
compensation payable
|
215.4
|
|
230.4
|
Accrued
liabilities
|
499.9
|
|
536.1
|
Accrued
payroll taxes and insurance
|
597.7
|
|
680.7
|
Value added
taxes payable
|
520.2
|
|
502.5
|
Short-term
borrowings and current maturities of long-term debt
|
40.1
|
|
36.0
|
Total current
liabilities
|
3,475.2
|
|
3,509.6
|
|
|
|
|
Other
liabilities:
|
|
|
|
Long-term
debt
|
443.8
|
|
481.9
|
Other
long-term liabilities
|
421.8
|
|
382.6
|
Total other
liabilities
|
865.6
|
|
864.5
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
1.1
|
|
1.1
|
Capital in
excess of par value
|
3,076.8
|
|
3,014.0
|
Retained
earnings
|
1,588.9
|
|
1,317.5
|
Accumulated
other comprehensive (loss) income
|
(44.8)
|
|
82.2
|
Treasury
stock, at cost
|
(1,582.1)
|
|
(1,500.6)
|
Total shareholders'
equity
|
3,039.9
|
|
2,914.2
|
Total
liabilities and shareholders' equity
|
$7,380.7
|
|
$7,288.3
|
ManpowerGroup
|
Consolidated
Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30
|
|
2014
|
|
2013
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
earnings
|
$310.4
|
|
$186.8
|
Adjustments to
reconcile net earnings to net
|
|
|
|
cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
64.3
|
|
70.9
|
Deferred income
taxes
|
6.9
|
|
(0.1)
|
Provision for doubtful
accounts
|
15.0
|
|
19.1
|
Share-based
compensation
|
34.3
|
|
22.8
|
Excess tax benefit on
exercise of share-based awards
|
(3.4)
|
|
(4.5)
|
Changes in
operating assets and liabilities, excluding
|
|
|
|
the impact of acquisitions:
|
|
|
|
Accounts
receivable
|
(355.4)
|
|
(128.8)
|
Other
assets
|
(136.7)
|
|
(101.1)
|
Other
liabilities
|
169.5
|
|
46.6
|
Cash provided by operating activities
|
104.9
|
|
111.7
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(32.8)
|
|
(33.6)
|
Acquisitions
of businesses, net of cash acquired
|
(25.1)
|
|
(18.2)
|
Proceeds from
sales of property and equipment
|
1.3
|
|
2.6
|
Cash used in investing activities
|
(56.6)
|
|
(49.2)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Net change in
short-term borrowings
|
10.2
|
|
(1.1)
|
Proceeds from
long-term debt
|
-
|
|
3.6
|
Repayments of
long-term debt
|
(1.6)
|
|
(268.7)
|
Proceeds from
share-based awards
|
24.3
|
|
65.8
|
Other
share-based award transactions, net
|
(5.5)
|
|
12.0
|
Repurchases of
common stock
|
(72.6)
|
|
-
|
Dividends
paid
|
(39.0)
|
|
(35.5)
|
Cash used in financing activities
|
(84.2)
|
|
(223.9)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(41.0)
|
|
2.0
|
Change in cash and
cash equivalents
|
(76.9)
|
|
(159.4)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
737.6
|
|
648.1
|
Cash and cash
equivalents, end of period
|
$660.7
|
|
$488.7
|
Logo -
http://photos.prnewswire.com/prnh/20110330/CG73938LOGO-a
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/manpowergroup-reports-3rd-quarter-2014-results-107702945.html
SOURCE ManpowerGroup