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8-K - FORM 8-K - ManpowerGroup Inc. | form_8k.htm |
EX-99.2 - PRESENTATION MATERIALS FOR APRIL 21, 2010 CONFERENCE CALL - ManpowerGroup Inc. | exhibit_99-2.htm |
Exhibit
99.1
FOR IMMEDIATE
RELEASE Contact:
Mike Van Handel
Manpower Inc.
+1.414.906.6305
michael.vanhandel@manpower.com
Manpower Reports 1st Quarter 2010 Results
MILWAUKEE, WI, USA, April 21, 2010 – Manpower Inc.
(NYSE: MAN) today reported that net earnings for the three months ended March
31, 2010 were $2.8 million, or 4 cents per diluted share, compared to a loss of
$1.8 million, or 2 cents per diluted share, a year earlier. Revenues for the
first quarter were $4.1 billion, an increase of 13% from the year earlier
period, or 5% in constant currency.
Net earnings in the first quarter were favorably impacted
by 3 cents per diluted share, as foreign currencies were relatively stronger
compared to the prior year period..
In December 2009 the French government published changes to
its business tax law effective in 2010. Under the new law, a
component of the business tax calculation is based upon added value (revenue
less expenses as defined in the legislation). Under U.S. Generally
Accepted Accounting Principles (GAAP), a tax of this nature is classified as a
component of the income tax provision. Accordingly, the charge of
$13.7 million related to this business tax was included in our provision for
income taxes in the quarter. Previously this amount would have been
classified as a component of Cost of Services. The amount of the
business tax did not change materially as a result of the new calculation and,
therefore, net earnings were not impacted.
Jeffrey A. Joerres, Manpower Inc. Chairman and Chief
Executive Officer, said, “The Manpower team throughout the world performed
extremely well. We were able to exceed our anticipated revenue plans
while we effectively managed our expenses. In all major geographies
we are experiencing strong cyclical trends and even stronger secular trends as
companies need to respond to the increased demand but want to remain
agile.
“Our major geographies, the U.S., France, Germany, U.K. and
others, all have stronger revenue trajectories exiting the first
quarter.
“In early April we completed the acquisition of COMSYS IT
Partners, Inc. This acquisition is an important component of our
strategy, when coupled with our organic growth, as we aggressively expand our
presence in the specialty staffing area.
"We anticipate that favorable economic trends will continue
into the second quarter, resulting in earnings per share of 14 cents to 22
cents. This includes a negative impact of 10 cents per share related
to the COMSYS acquisition. We anticipate the impact of currency changes on the
quarter will be negligible.”
In conjunction with its first quarter earnings release,
Manpower will broadcast its conference call live over the Internet on April 21,
2010 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://investor.manpower.com.
Supplemental
financial information referenced in the conference call can be found at
http://investor.manpower.com.
About Manpower Inc.
Manpower Inc. (NYSE: MAN) is a world leader in workforce
solutions; creating and delivering services that enable its clients to win in
the changing world of work. With more than 60 years of experience, Manpower
offers employers a range of solutions and services for the entire employment and
business cycle including permanent, temporary and contract recruitment; employee
assessment and selection; training; outplacement; outsourcing and consulting.
Manpower's worldwide network of nearly 4000 offices in 82 countries and
territories enables the company to meet the needs of its 400,000 clients per
year, including small and medium size enterprises in all industry sectors, as
well as the world's largest multinational corporations. The focus of Manpower's
work is on raising productivity through improved quality, efficiency and
cost-reduction across their total workforce, enabling clients to concentrate on
their core business activities. Manpower Inc. operates under five brands:
Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management.
More information on Manpower Inc. is available at www.manpower.com.
Forward-Looking Statements
This news release contains statements, including statements
regarding economic trends and future profitability, 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, 2009, which information is incorporated herein by
reference.
- ### -
Results
of Operations
|
||||||||||||||||
(In
millions, except per share data)
|
||||||||||||||||
Three
Months Ended March 31
|
||||||||||||||||
%
Variance
|
||||||||||||||||
Amount
|
Constant
|
|||||||||||||||
2010
|
2009
|
Reported
|
Currency
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
from services (a) (b)
|
$ | 4,099.3 | $ | 3,643.0 | 12.5 | % | 5.1 | % | ||||||||
Cost
of services
|
3,397.8 | 2,977.3 | 14.1 | % | 6.6 | % | ||||||||||
Gross
profit
|
701.5 | 665.7 | 5.4 | % | -1.4 | % | ||||||||||
Selling
and administrative expenses
|
668.9 | 664.3 | 0.7 | % | -5.5 | % | ||||||||||
Operating
profit
|
32.6 | 1.4 | N/A | N/A | ||||||||||||
Interest
and other expenses
|
12.9 | 11.9 | 8.7 | % | ||||||||||||
Earnings (loss)
before income taxes
|
19.7 | (10.5 | ) | N/A | N/A | |||||||||||
Provision
for income taxes
|
16.9 | (8.7 | ) | N/A | ||||||||||||
Net
earnings (loss)
|
$ | 2.8 | $ | (1.8 | ) | N/A | N/A | |||||||||
Net
earnings (loss) per share - basic
|
$ | 0.04 | $ | (0.02 | ) | N/A | ||||||||||
Net
earnings (loss) per share - diluted
|
$ | 0.04 | $ | (0.02 | ) | N/A | N/A | |||||||||
Weighted
average shares - basic
|
78.6 | 78.1 | 0.6 | % | ||||||||||||
Weighted
average shares - diluted
|
79.9 | 78.1 | 2.2 | % | ||||||||||||
(a) Revenues
from services include fees received from our franchise offices of $4.6
million and $5.1 million for the three months ended March 31, 2010 and
2009, respectively. These fees are primarily based on revenues generated
by the franchise offices, which were $193.9 million and $158.9 million for
the three months ended March 31, 2010 and 2009,
respectively.
|
||||||||||||||||
(b) Our
2009 results have been restated as disclosed in Note 16 to the
Consolidated Financial Statements included in our 2009 Annual Report to
Shareholders.
|
Manpower
Inc.
|
||||||||||||||||
Operating
Unit Results
|
||||||||||||||||
(In
millions)
|
||||||||||||||||
Three
Months Ended March 31
|
||||||||||||||||
%
Variance
|
||||||||||||||||
Amount
|
Constant
|
|||||||||||||||
2010
|
2009
|
Reported
|
Currency
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
from Services:
|
||||||||||||||||
Americas:
|
||||||||||||||||
United
States (a)
|
$ | 442.1 | $ | 373.8 | 18.3 | % | 18.3 | % | ||||||||
Other
Americas
|
294.5 | 219.2 | 34.4 | % | 22.8 | % | ||||||||||
736.6 | 593.0 | 24.2 | % | 19.9 | % | |||||||||||
France
|
1,107.5 | 956.9 | 15.7 | % | 9.3 | % | ||||||||||
EMEA:
|
||||||||||||||||
Italy
|
234.2 | 220.4 | 6.3 | % | 0.4 | % | ||||||||||
Other
EMEA (b)
|
1,379.6 | 1,258.8 | 9.6 | % | 0.4 | % | ||||||||||
1,613.8 | 1,479.2 | 9.1 | % | 0.4 | % | |||||||||||
Asia
Pacific
|
497.5 | 425.2 | 17.0 | % | 5.3 | % | ||||||||||
Right
Management
|
103.3 | 136.0 | -24.0 | % | -27.9 | % | ||||||||||
Jefferson
Wells
|
40.6 | 52.7 | -22.9 | % | -22.9 | % | ||||||||||
$ | 4,099.3 | $ | 3,643.0 | 12.5 | % | 5.1 | % | |||||||||
Operating
Unit (Loss) Profit:
|
||||||||||||||||
Americas:
|
||||||||||||||||
United
States (a)
|
$ | (8.4 | ) | $ | (14.5 | ) | N/A | N/A | ||||||||
Other
Americas
|
9.6 | 4.8 | 101.0 | % | 87.1 | % | ||||||||||
1.2 | (9.7 | ) | N/A | N/A | ||||||||||||
France
|
0.2 | 1.0 | -83.9 | % | -69.7 | % | ||||||||||
EMEA:
|
||||||||||||||||
Italy
|
6.8 | 1.4 | 386.1 | % | 362.9 | % | ||||||||||
Other
EMEA (b)
|
16.8 | (3.4 | ) | N/A | N/A | |||||||||||
23.6 | (2.0 | ) | N/A | N/A | ||||||||||||
Asia
Pacific
|
12.5 | 12.1 | 3.6 | % | -9.3 | % | ||||||||||
Right
Management
|
12.5 | 29.1 | -56.9 | % | -58.1 | % | ||||||||||
Jefferson
Wells
|
(4.7 | ) | (7.5 | ) | N/A | N/A | ||||||||||
45.3 | 23.0 | |||||||||||||||
Corporate
expenses
|
(26.4 | ) | (21.6 | ) | ||||||||||||
Reclassification
of French business tax
|
13.7 | - | ||||||||||||||
Operating
profit
|
32.6 | 1.4 | N/A | N/A | ||||||||||||
Interest
and other expenses (c)
|
(12.9 | ) | (11.9 | ) | ||||||||||||
Earnings
(loss) before income taxes
|
$ | 19.7 | $ | (10.5 | ) | |||||||||||
(a) In
the United States, revenues from services include fees received from our
franchise offices of $2.5 million and $2.0 million for the three months
ended March 31, 2010 and 2009, respectively. These fees are primarily
based on revenues generated by the franchise offices, which were $132.2
million and $94.9 million for the three months ended March 31, 2010 and
2009, respectively.
|
||||||||||||||||
(b) Our
2009 results have been restated as disclosed in Note 16 to the
Consolidated Financial Statements included in our 2009 Annual Report to
Shareholders.
|
||||||||||||||||
(c) The
components of interest and other expenses were:
|
||||||||||||||||
2010 | 2009 | |||||||||||||||
Interest
expense
|
$ | 11.1 | $ | 13.1 | ||||||||||||
Interest
income
|
(1.6 | ) | (4.4 | ) | ||||||||||||
Foreign
exchange losses
|
1.9 | 0.5 | ||||||||||||||
Miscellaneous
expenses, net
|
1.5 | 2.7 | ||||||||||||||
$ | 12.9 | $ | 11.9 |
Manpower
Inc.
|
||||||||
Consolidated
Balance Sheets
|
||||||||
(In
millions)
|
||||||||
Mar.
31
|
Dec.
31
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 943.8 | $ | 1,014.6 | ||||
Accounts
receivable, net
|
3,075.7 | 3,070.8 | ||||||
Prepaid
expenses and other assets
|
202.4 | 179.6 | ||||||
Future
income tax benefits
|
55.7 | 67.4 | ||||||
Total
current assets
|
4,277.6 | 4,332.4 | ||||||
Other
assets:
|
||||||||
Goodwill
and other intangible assets, net
|
1,334.9 | 1,357.5 | ||||||
Other
assets
|
339.9 | 347.5 | ||||||
Total
other assets
|
1,674.8 | 1,705.0 | ||||||
Property
and equipment:
|
||||||||
Land,
buildings, leasehold improvements and equipment
|
666.2 | 703.6 | ||||||
Less: accumulated
depreciation and amortization
|
503.6 | 527.2 | ||||||
Net
property and equipment
|
162.6 | 176.4 | ||||||
Total
assets
|
$ | 6,115.0 | $ | 6,213.8 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 1,008.7 | $ | 944.4 | ||||
Employee
compensation payable
|
159.4 | 187.8 | ||||||
Accrued
liabilities
|
465.8 | 465.9 | ||||||
Accrued
payroll taxes and insurance
|
515.4 | 572.0 | ||||||
Value
added taxes payable
|
401.2 | 391.2 | ||||||
Short-term
borrowings and current maturities of long-term debt
|
42.2 | 41.7 | ||||||
Total
current liabilities
|
2,592.7 | 2,603.0 | ||||||
Other
liabilities:
|
||||||||
Long-term
debt
|
675.5 | 715.6 | ||||||
Other
long-term liabilities
|
360.2 | 358.7 | ||||||
Total
other liabilities
|
1,035.7 | 1,074.3 | ||||||
Shareholders'
equity:
|
||||||||
Common
stock
|
1.0 | 1.0 | ||||||
Capital
in excess of par value
|
2,555.5 | 2,544.2 | ||||||
Retained
earnings
|
1,112.4 | 1,109.6 | ||||||
Accumulated
other comprehensive income
|
43.9 | 106.9 | ||||||
Treasury
stock, at cost
|
(1,226.2 | ) | (1,225.2 | ) | ||||
Total
shareholders' equity
|
2,486.6 | 2,536.5 | ||||||
Total
liabilities and shareholders' equity
|
$ | 6,115.0 | $ | 6,213.8 |
Consolidated
Statements of Cash Flows
|
||||||||
(In
millions)
|
||||||||
Three
Months Ended
|
||||||||
Mar.
31
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
earnings (loss)
|
$ | 2.8 | $ | (1.8 | ) | |||
Adjustments
to reconcile net earnings (loss) to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
21.4 | 23.2 | ||||||
Deferred
income taxes
|
(9.5 | ) | 2.0 | |||||
Provision
for doubtful accounts
|
4.1 | 6.6 | ||||||
Share-based
compensation
|
5.5 | 4.1 | ||||||
Excess
tax benefit on exercise of stock options
|
(0.1 | ) | (0.1 | ) | ||||
Changes
in operating assets and liabilities, excluding the impact of
acquisitions:
|
||||||||
Accounts
receivable
|
(127.1 | ) | 572.3 | |||||
Other
assets
|
(35.6 | ) | (41.5 | ) | ||||
Other
liabilities
|
95.5 | (315.0 | ) | |||||
Cash
(used in) provided by operating activities
|
(43.0 | ) | 249.8 | |||||
Cash
Flows from Investing Activities:
|
||||||||
Capital
expenditures
|
(7.8 | ) | (8.9 | ) | ||||
Acquisitions
of businesses, net of cash acquired
|
(0.1 | ) | (10.6 | ) | ||||
Proceeds
from the sale of property and equipment
|
0.3 | 1.0 | ||||||
Cash
used in investing activities
|
(7.6 | ) | (18.5 | ) | ||||
Cash
Flows from Financing Activities:
|
||||||||
Net
change in short-term borrowings
|
0.2 | (17.0 | ) | |||||
Proceeds
from long-term debt
|
1.5 | 77.6 | ||||||
Repayments
of long-term debt
|
(0.7 | ) | (116.1 | ) | ||||
Proceeds
from share-based awards
|
4.9 | 4.7 | ||||||
Excess
tax benefit on exercise of stock options
|
0.1 | 0.1 | ||||||
Cash
provided by (used in) financing activities
|
6.0 | (50.7 | ) | |||||
Effect
of exchange rate changes on cash
|
(26.2 | ) | (53.6 | ) | ||||
Change
in cash and cash equivalents
|
(70.8 | ) | 127.0 | |||||
Cash
and cash equivalents, beginning of period
|
1,014.6 | 874.0 | ||||||
Cash
and cash equivalents, end of period
|
$ | 943.8 | $ | 1,001.0 |