- Revenues of $4.8 billion (-8% as
reported, -2% constant currency (CC))
- Gross profit margin of 18.2%, up 80 basis points year over year
reflecting continued strong pricing discipline and increased
outplacement activity in Right Management
- Manpower, Experis and Talent Solutions revenues experienced
modest organic CC declines in the quarter driven by the environment
in the U.S. and Europe
- Free Cash Flow of $111 million;
Repurchased $30 million of common
stock
- Strong Balance Sheet positions us well in an uncertain
environment
MILWAUKEE, April 20,
2023 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today
reported net earnings of $1.51 per
diluted share for the three months ended March 31, 2023 compared to $1.68 per diluted share in the prior year
period. Net earnings in the quarter were $77.8 million compared to $91.6 million a year earlier. Revenues for the
first quarter were $4.8 billion, an
8% decrease from the prior year period.
The current year quarter included restructuring costs which
reduced earnings per share by $0.10
in the first quarter. Excluding these costs, earnings per share was
$1.61 per diluted share in the
quarter representing a decrease of 7% in constant
currency.1
Financial results in the quarter
were also impacted by the stronger
U.S. dollar relative to foreign
currencies compared
to the prior year period, resulting in a
14 cent negative impact to earnings
per share in the quarter compared to the prior year. On a constant
currency basis, revenues decreased 2% compared to the prior year
period.
Days Sales Outstanding improved by 0.5 days year over year
reflecting continued focus on collections and working capital
efficiency.
Jonas Prising, ManpowerGroup
Chairman & CEO, said, "Our first quarter results reflect a
challenging operating environment in the U.S. and Europe. Despite a softening demand environment
for our brands, labor markets remained strong during the first
quarter. Employers are intent on holding on to the staff they have
and are hiring new talent more selectively at a measured pace. We
continue to adjust our cost base in the parts of our business where
demand has decreased. Our steadfast commitment to our
Diversification, Digitization and Innovation initiatives positions
us for improved growth when economic conditions strengthen.
We anticipate diluted earnings per share in the second quarter
will be between $1.58 and
$1.68, which includes an estimated
unfavorable currency impact of 3
cents."
In conjunction with its first quarter earnings release,
ManpowerGroup will host a conference call live online on
April 20, 2023 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the
conference call, webcast details, presentation and recordings are
included within the Investor Relations section of
manpowergroup.com.
Supplemental financial information referenced in the conference
call can be found at http://investor.manpowergroup.com/.
____________________________
|
1
|
The prior year period
included acquisition integration costs from our U.S. Experis
acquisition and the net loss related to the sale of our Russia
business which reduced earnings per share by $0.20 which are also
excluded when determining the year over year trend.
|
About ManpowerGroup
ManpowerGroup® (NYSE: MAN), the
leading global workforce solutions company, helps organizations
transform in a fast-changing world of work by sourcing, assessing,
developing, and managing the talent that enables them to win. We
develop innovative solutions for hundreds of thousands of
organizations every year, providing them with skilled talent while
finding meaningful, sustainable employment for millions of people
across a wide range of industries and skills. Our expert family of
brands – Manpower, Experis, and Talent Solutions – creates
substantially more value for candidates and clients across more
than 70 countries and territories and has done so for 75 years. We
are recognized consistently for our diversity – as a best place to
work for Women, Inclusion, Equality, and Disability, and in 2023
ManpowerGroup was named one of the World's Most Ethical Companies
for the 14th time – all confirming our position as the brand of
choice for in-demand talent. For more information, visit
www.manpowergroup.com.
Forward-Looking Statements
This press release contains
statements, including statements regarding economic uncertainty,
financial outlook, labor demand, geopolitical risk and uncertainty,
the Company's strategic initiatives and technology investments, and
the future performance of our brands and businesses, including in
certain regions and countries, 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 due to numerous factors.
These factors include those 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, 2022, which information
is incorporated herein by reference.
The Company assumes no obligation to update or revise any
forward-looking statements. We reference certain non-GAAP financial
measures, which we believe provide useful information for
investors. We include a reconciliation of these measures, where
appropriate, to GAAP on the Investor Relations section of our
website at manpowergroup.com.
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$ 4,752.3
|
$ 5,143.3
|
-7.6 %
|
-2.2 %
|
|
|
|
|
|
Cost of
services
|
3,889.2
|
4,246.2
|
-8.4 %
|
-2.9 %
|
|
|
|
|
|
Gross
profit
|
863.1
|
897.1
|
-3.8 %
|
1.3 %
|
|
|
|
|
|
Selling and
administrative expenses
|
745.2
|
758.4
|
-1.7 %
|
2.9 %
|
|
|
|
|
|
Operating
profit
|
117.9
|
138.7
|
-15.0 %
|
-7.4 %
|
|
|
|
|
|
Interest and other
expenses, net
|
7.5
|
2.7
|
180.4 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
110.4
|
136.0
|
-18.8 %
|
-11.5 %
|
|
|
|
|
|
Provision for income
taxes
|
32.6
|
44.4
|
-26.5 %
|
|
|
|
|
|
|
Net
earnings
|
$
77.8
|
$
91.6
|
-15.1 %
|
-7.4 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
1.53
|
$1.71
|
-10.6 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
1.51
|
$1.68
|
-10.4 %
|
-2.3 %
|
|
|
|
|
|
Weighted average shares
- basic
|
50.9
|
53.6
|
-5.0 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
51.6
|
54.4
|
-5.2 %
|
|
|
|
|
|
|
|
|
|
|
|
(a) Revenues from
services include fees received from our franchise offices of $3.9
million and $3.6 million
for the three months ended March 31,
2023 and 2022, respectively. These fees are primarily based on
revenues generated by the franchise
offices, which were $250.2 million and $265.2 million for the
three
months ended March 31, 2023 and
2022, respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$
770.0
|
$
889.4
|
-13.4 %
|
-13.4 %
|
Other
Americas
|
360.2
|
361.8
|
-0.4 %
|
11.8 %
|
|
1,130.2
|
1,251.2
|
-9.7 %
|
-6.1 %
|
Southern
Europe:
|
|
|
|
|
France
|
1,169.3
|
1,192.4
|
-1.9 %
|
2.5 %
|
Italy
|
422.2
|
445.0
|
-5.1 %
|
-0.8 %
|
Other Southern
Europe
|
476.4
|
556.5
|
-14.4 %
|
-10.3 %
|
|
2,067.9
|
2,193.9
|
-5.7 %
|
-1.4 %
|
|
|
|
|
|
Northern
Europe
|
967.6
|
1,094.5
|
-11.6 %
|
-3.9 %
|
APME
|
605.9
|
618.2
|
-2.0 %
|
7.3 %
|
|
4,771.6
|
5,157.8
|
|
|
Intercompany
Eliminations
|
(19.3)
|
(14.5)
|
|
|
|
$
4,752.3
|
$
5,143.3
|
-7.6 %
|
-2.2 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
31.1
|
$
58.3
|
-46.7 %
|
-46.7 %
|
Other
Americas
|
17.5
|
14.5
|
21.0 %
|
37.2 %
|
|
48.6
|
72.8
|
-33.2 %
|
-30.0 %
|
Southern
Europe:
|
|
|
|
|
France
|
44.9
|
49.6
|
-9.4 %
|
-5.7 %
|
Italy
|
30.7
|
29.0
|
5.9 %
|
10.6 %
|
Other Southern
Europe
|
14.3
|
16.6
|
-14.3 %
|
-9.1 %
|
|
89.9
|
95.2
|
-5.6 %
|
-1.3 %
|
|
|
|
|
|
Northern
Europe
|
5.0
|
3.3
|
53.6 %
|
107.7 %
|
APME
|
21.1
|
19.0
|
11.5 %
|
23.9 %
|
|
164.6
|
190.3
|
|
|
Corporate
expenses
|
(37.9)
|
(42.0)
|
|
|
Intangible asset
amortization expense
|
(8.8)
|
(9.6)
|
|
|
Operating profit
|
117.9
|
138.7
|
-15.0 %
|
-7.4 %
|
Interest and other
expenses, net (b)
|
(7.5)
|
(2.7)
|
|
|
Earnings before income taxes
|
$
110.4
|
$
136.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the United
States, revenues from services include fees received from our
franchise offices of $3.2 million and $2.9 million
for the three months ended March 31,
2023 and 2022, respectively. These fees are primarily based on
revenues generated
by the franchise offices, which were
$99.3 million and $110.8 million for the three months ended March
31, 2023 and 2022,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses, net were:
|
|
|
|
|
2023
|
2022
|
|
|
Interest
expense
|
$
18.7
|
$
10.4
|
|
|
Interest
income
|
(8.1)
|
(2.8)
|
|
|
Foreign
exchange loss, net
|
3.1
|
1.8
|
|
|
Miscellaneous income, net
|
(6.2)
|
(6.7)
|
|
|
|
$
7.5
|
$
2.7
|
|
|
|
|
|
|
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
706.7
|
|
$ 639.0
|
Accounts
receivable, net
|
4,773.2
|
|
5,137.4
|
Prepaid expenses
and other assets
|
178.0
|
|
158.0
|
Total current
assets
|
5,657.9
|
|
5,934.4
|
|
|
|
|
Other
assets:
|
|
|
|
Goodwill
|
1,631.7
|
|
1,628.1
|
Intangible
assets, net
|
541.4
|
|
549.5
|
Operating lease
right-of-use asset
|
381.8
|
|
365.7
|
Other
assets
|
566.4
|
|
540.5
|
Total other
assets
|
3,121.3
|
|
3,083.8
|
|
|
|
|
Property and
equipment:
|
|
|
|
Land, buildings,
leasehold improvements and equipment
|
595.1
|
|
584.9
|
Less:
accumulated depreciation and amortization
|
484.7
|
|
472.7
|
Net property and
equipment
|
110.4
|
|
112.2
|
Total assets
|
$ 8,889.6
|
|
$
9,130.4
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 2,662.4
|
|
$
2,831.4
|
Employee
compensation payable
|
200.0
|
|
271.7
|
Accrued
liabilities
|
576.7
|
|
572.6
|
Accrued payroll
taxes and insurance
|
694.8
|
|
746.7
|
Value added
taxes payable
|
429.1
|
|
462.7
|
Short-term
borrowings and current maturities of long-term debt
|
16.6
|
|
26.6
|
Total current
liabilities
|
4,579.6
|
|
4,911.7
|
|
|
|
|
Other
liabilities:
|
|
|
|
Long-term
debt
|
972.4
|
|
959.9
|
Long-term
operating lease liability
|
282.6
|
|
266.6
|
Other long-term
liabilities
|
545.6
|
|
534.1
|
Total other
liabilities
|
1,800.6
|
|
1,760.6
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
ManpowerGroup
shareholders' equity
|
|
|
|
Common stock
|
1.2
|
|
1.2
|
Capital in excess of par value
|
3,490.6
|
|
3,484.2
|
Retained earnings
|
3,946.3
|
|
3,868.5
|
Accumulated other comprehensive loss
|
(451.6)
|
|
(458.7)
|
Treasury stock, at cost
|
(4,488.1)
|
|
(4,447.9)
|
Total
ManpowerGroup shareholders' equity
|
2,498.4
|
|
2,447.3
|
Noncontrolling
interests
|
11.0
|
|
10.8
|
Total shareholders' equity
|
2,509.4
|
|
2,458.1
|
Total liabilities and shareholders' equity
|
$ 8,889.6
|
|
$
9,130.4
|
ManpowerGroup
|
Consolidated Statements
of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
earnings
|
$ 77.8
|
|
$ 91.6
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
21.0
|
|
21.3
|
Loss on sale of a
subsidiary
|
-
|
|
8.0
|
Deferred income
taxes
|
18.2
|
|
2.4
|
Provision for doubtful
accounts
|
0.1
|
|
2.8
|
Share-based
compensation
|
5.1
|
|
10.6
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
398.0
|
|
(96.9)
|
Other
assets
|
(37.3)
|
|
(17.1)
|
Other
liabilities
|
(358.3)
|
|
47.9
|
Cash provided by operating activities
|
124.6
|
|
70.6
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(13.2)
|
|
(19.4)
|
Proceeds from
the sales of subsidiaries and property and equipment
|
-
|
|
0.8
|
Cash used in investing activities
|
(13.2)
|
|
(18.6)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Net change in
short-term borrowings
|
(10.7)
|
|
(3.7)
|
Repayments of
revolving debt facility
|
-
|
|
(25.0)
|
Proceeds from
long-term debt
|
0.2
|
|
0.7
|
Repayments of
long-term debt
|
(0.2)
|
|
-
|
Proceeds from
share-based awards
|
1.7
|
|
0.3
|
Other
share-based award transactions
|
(9.8)
|
|
(8.2)
|
Repurchases of
common stock
|
(30.0)
|
|
(59.9)
|
Cash used in financing activities
|
(48.8)
|
|
(95.8)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
5.1
|
|
(26.7)
|
Change in cash and cash
equivalents
|
67.7
|
|
(70.5)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
639.0
|
|
847.8
|
Cash and cash
equivalents, end of period
|
$ 706.7
|
|
$ 777.3
|
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SOURCE ManpowerGroup