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MILWAUKEE, Oct. 21, 2015 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings per diluted share for the three months ended September 30, 2015 were $1.61 compared to $1.61 in the prior year period. Net earnings in the quarter were $123.9 million compared to $130.5 million a year earlier. Revenues for the third quarter were $5.0 billion, a decrease of 8% from the year earlier period.

ManpowerGroup.

Financial results in the quarter were significantly impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period.  On a constant currency basis, revenues increased 6% and net earnings per diluted share increased 16%.  Earnings per share in the quarter were negatively impacted 25 cents by changes in foreign currencies compared to the prior year.

Jonas Prising, ManpowerGroup CEO, said, "Our team executed well in the 3rd quarter, delivering good results despite an increasingly uneven global growth scenario. In this environment of volatile economic growth our clients are seeking to build more agile, flexible organizations to better adapt to any market changes affecting demand for their products and services, and this is where our global workforce solutions can play an important role."

"We are anticipating the fourth quarter of 2015 diluted net earnings per share to be in the range of $1.47 to $1.55, which includes an estimated unfavorable currency impact of 15 cents," Prising stated.

Earnings per diluted share for the nine months ended September 30, 2015 were $3.75 compared to $3.82 per diluted share in 2014. Net earnings were $295.3 million compared to $310.4 million in the prior year. Revenues for the nine-month period were $14.4 billion, a decrease of 8% from the prior year in reported U.S. dollars or an increase of 6% in constant currency.  Foreign currency exchange rates had an unfavorable impact of 64 cents per share for the nine-month period in 2015. On a constant currency basis, net earnings per diluted share were up 15% for the nine month period.

In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 21, 2015 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) is the world's workforce expert, creating innovative workforce solutions for more than 65 years. As workforce experts, we connect more than 600,000 people to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands – Manpower®, Experis®, Right Management ® and ManpowerGroup® Solutions – we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2015, ManpowerGroup was named one of the World's Most Ethical Companies for the fifth consecutive year and one of Fortune's Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com

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, 2014, which information is incorporated herein by reference.

 

ManpowerGroup

Results of Operations

(In millions, except per share data)

Three Months Ended September 30

% Variance

Amount

Constant

2015

2014

Reported

Currency

(Unaudited)

Revenues from services (a)

$4,972.5

$5,416.0

-8.2%

5.8%

Cost of services 

4,120.4

4,510.4

-8.6%

5.5%

  Gross profit

852.1

905.6

-5.9%

7.0%

Selling and administrative expenses

645.8

693.3

-6.9%

5.3%

  Operating profit

206.3

212.3

-2.8%

12.7%

Interest and other expenses

9.4

9.9

-5.2%

  Earnings before income taxes

196.9

202.4

-2.7%

12.6%

Provision for income taxes

73.0

71.9

1.6%

  Net earnings

$   123.9

$   130.5

-5.1%

9.5%

Net earnings per share - basic

$     1.63

$     1.64

-0.6%

Net earnings per share - diluted

$     1.61

$     1.61

0.0%

15.5%

Weighted average shares - basic

76.1

79.7

-4.5%

Weighted average shares - diluted 

77.0

81.1

-5.1%

(a)  Revenues from services include fees received from our franchise offices of $6.6 million and $6.9 million for the three months ended September 30, 2015 and 2014, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $286.4 million and $302.0 million for the three months ended September 30, 2015 and 2014, respectively.

 

 

ManpowerGroup

Operating Unit Results

(In millions)

Three Months Ended September 30

% Variance

Amount

Constant

2015

2014

Reported

Currency

(Unaudited)

Revenues from Services:

  Americas:

      United States  (a)

$   769.6

$   800.5

-3.9%

-3.9%

      Other Americas

367.0

388.5

-5.6%

16.4%

1,136.6

1,189.0

-4.4%

2.8%

  Southern Europe:

      France

1,242.5

1,454.3

-14.6%

1.9%

      Italy

324.4

294.1

10.3%

31.4%

      Other Southern Europe

258.5

259.9

-0.6%

16.0%

1,825.4

2,008.3

-9.1%

8.0%

  Northern Europe

1,373.4

1,554.6

-11.7%

3.1%

  APME

570.2

592.5

-3.7%

11.9%

  Right Management 

66.9

71.6

-6.6%

1.3%

$4,972.5

$5,416.0

-8.2%

5.8%

Operating Unit Profit:

  Americas:

      United States

$     45.5

$     41.9

8.7%

8.7%

      Other Americas

13.2

14.6

-9.7%

10.2%

58.7

56.5

3.9%

9.1%

  Southern Europe:

      France

74.9

84.2

-11.0%

6.4%

      Italy

17.5

14.7

19.1%

42.1%

      Other Southern Europe

7.3

6.1

18.5%

38.3%

99.7

105.0

-5.1%

13.2%

  Northern Europe

50.3

59.6

-15.4%

-3.0%

  APME

23.9

21.6

9.9%

27.0%

  Right Management 

10.7

6.3

72.0%

75.4%

243.3

249.0

Corporate expenses

(28.9)

(28.3)

Intangible asset amortization expense

(8.1)

(8.4)

    Operating profit

206.3

212.3

-2.8%

12.7%

Interest and other expenses (b)

(9.4)

(9.9)

    Earnings before income taxes

$   196.9

$   202.4

(a)  In the United States, revenues from services include fees received from our franchise offices of $4.2 million and $4.4 million for the three months ended September 30, 2015 and 2014, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $186.3 million and $196.3 million for the three months ended September 30, 2015 and 2014, respectively.

(b)  The components of interest and other expenses were:

2015

2014

        Interest expense

$      9.2

$      9.6

        Interest income

(0.7)

(1.4)

        Foreign exchange (gain) loss

(0.2)

0.7

        Miscellaneous expenses, net

1.1

1.0

$      9.4

$      9.9

 

ManpowerGroup

Results of Operations

(In millions, except per share data)

Nine Months Ended September 30

% Variance

Amount

Constant

2015

2014

Reported

Currency

(Unaudited)

Revenues from services (a)

$14,376.0

$15,641.7

-8.1%

6.3%

Cost of services

11,931.3

13,022.3

-8.4%

6.2%

  Gross profit

2,444.7

2,619.4

-6.7%

6.8%

Selling and administrative expenses

1,936.9

2,092.8

-7.5%

5.1%

  Operating profit

507.8

526.6

-3.6%

13.5%

Interest and other expenses

27.2

27.0

0.9%

  Earnings before income taxes

480.6

499.6

-3.8%

13.0%

Provision for income taxes

185.3

189.2

-2.1%

  Net earnings

$     295.3

$     310.4

-4.9%

11.4%

Net earnings per share - basic

$      3.80

$      3.89

-2.3%

Net earnings per share - diluted

$      3.75

$      3.82

-1.8%

14.9%

Weighted average shares - basic

77.7

79.8

-2.6%

Weighted average shares - diluted

78.7

81.3

-3.3%

(a)  Revenues from services include fees received from our franchise offices of $18.1 million and $18.8 million for the nine months ended September 30, 2015 and 2014, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $812.6 million and $845.2 million for the nine months ended September 30, 2015 and 2014, respectively.

 

 

ManpowerGroup

Operating Unit Results

(In millions)

Nine Months Ended September 30

% Variance

Amount

Constant

2015

2014

Reported

Currency

(Unaudited)

Revenues from Services:

  Americas:

      United States  (a)

$  2,257.3

$  2,296.9

-1.7%

-1.7%

      Other Americas

1,094.4

1,114.3

-1.8%

15.6%

3,351.7

3,411.2

-1.7%

3.9%

  Southern Europe:

      France

3,485.9

4,083.7

-14.6%

3.8%

      Italy

913.8

882.7

3.5%

25.9%

      Other Southern Europe

729.0

732.9

-0.5%

17.8%

5,128.7

5,699.3

-10.0%

9.0%

  Northern Europe

4,032.3

4,546.3

-11.3%

5.0%

  APME

1,659.9

1,760.2

-5.7%

6.6%

  Right Management

203.4

224.7

-9.5%

-1.7%

$14,376.0

$15,641.7

-8.1%

6.3%

Operating Unit Profit:

  Americas:

      United States

$     104.6

$      85.0

23.1%

23.1%

      Other Americas

40.5

41.2

-1.8%

14.9%

145.1

126.2

15.0%

20.4%

  Southern Europe:

      France

192.1

207.3

-7.3%

13.0%

      Italy

51.3

45.6

12.4%

37.2%

      Other Southern Europe

18.3

16.4

11.3%

31.3%

261.7

269.3

-2.8%

18.2%

  Northern Europe

119.4

144.2

-17.2%

-3.9%

  APME

61.2

62.8

-2.8%

9.8%

  Right Management

28.0

27.3

2.9%

7.2%

615.4

629.8

Corporate expenses

(84.5)

(78.2)

Intangible asset amortization expense

(23.1)

(25.0)

    Operating profit

507.8

526.6

-3.6%

13.5%

Interest and other expenses (b)

(27.2)

(27.0)

    Earnings before income taxes

$     480.6

$     499.6

(a)  In the United States, revenues from services include fees received from our franchise offices of $11.5 million and $11.7 million for the nine months ended September 30, 2015 and 2014, respectively.  These fees are primarily based on revenues generated by the franchise offices, which were $539.6 million and $555.7 million for the nine months ended September 30, 2015 and 2014, respectively.

(b)  The components of interest and other expenses were:

2015

2014

        Interest expense

$      25.4

$      27.5

        Interest income

(1.9)

(3.4)

        Foreign exchange loss (gain)

0.5

(1.4)

        Miscellaneous expenses, net

3.2

4.3

$      27.2

$      27.0

 

ManpowerGroup

Consolidated Balance Sheets

(In millions)

Sep. 30

Dec. 31

2015

2014

(Unaudited)

ASSETS

Current assets:

  Cash and cash equivalents

$   652.5

$   699.2

  Accounts receivable, net

4,278.9

4,134.5

  Prepaid expenses and other assets

126.4

147.8

  Future income tax benefits

49.8

52.2

      Total current assets

5,107.6

5,033.7

Other assets:

  Goodwill

1,243.4

1,075.2

  Intangible assets, net

331.7

286.8

  Other assets

618.9

636.4

      Total other assets

2,194.0

1,998.4

Property and equipment:

  Land, buildings, leasehold improvements and equipment

595.9

633.5

  Less:  accumulated depreciation and amortization

453.1

484.4

      Net property and equipment

142.8

149.1

             Total assets

$7,444.4

$7,181.2

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

  Accounts payable

$1,647.3

$1,542.7

  Employee compensation payable

205.0

204.5

  Accrued liabilities

544.3

493.3

  Accrued payroll taxes and insurance

564.4

622.4

  Value added taxes payable

465.8

466.3

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

37.9

45.2

      Total current liabilities

3,464.7

3,374.4

Other liabilities:

  Long-term debt

840.8

422.6

  Other long-term liabilities

453.7

441.2

      Total other liabilities

1,294.5

863.8

Shareholders' equity:

  ManpowerGroup shareholders' equity

    Common stock

1.1

1.1

    Capital in excess of par value

3,170.4

3,084.2

    Retained earnings 

1,901.0

1,667.8

    Accumulated other comprehensive loss

(267.8)

(155.2)

    Treasury stock, at cost

(2,184.5)

(1,654.9)

       Total ManpowerGroup shareholders' equity

2,620.2

2,943.0

  Noncontrolling interests

65.0

-

          Total shareholders' equity

2,685.2

2,943.0

             Total liabilities and shareholders' equity

$7,444.4

$7,181.2

 

 

ManpowerGroup

Consolidated Statements of Cash Flows

(In millions)

Nine Months Ended

September 30

2015

2014

(Unaudited)

Cash Flows from Operating Activities:

  Net earnings

$295.3

$310.4

  Adjustments to reconcile net earnings to net cash provided by operating activities:

      Depreciation and amortization

57.1

64.3

      Deferred income taxes

72.6

6.9

      Provision for doubtful accounts

13.2

15.0

      Share-based compensation

22.9

34.3

      Excess tax benefit on exercise of share-based awards

(4.8)

(3.4)

  Changes in operating assets and liabilities, excluding the impact of acquisitions:

      Accounts receivable

(331.7)

(355.4)

      Other assets

(10.3)

(136.7)

      Other liabilities

168.5

169.5

            Cash provided by operating activities

282.8

104.9

Cash Flows from Investing Activities:

  Capital expenditures

(33.3)

(32.8)

  Acquisitions of businesses, net of cash acquired

(240.7)

(25.1)

  Proceeds from sales of property and equipment

4.8

1.3

            Cash used in investing activities

(269.2)

(56.6)

Cash Flows from Financing Activities:

  Net change in short-term borrowings

(2.3)

10.2

  Proceeds from long-term debt

453.9

-

  Repayments of long-term debt

(1.9)

(1.6)

  Payments for debt issuance costs

(2.5)

-

  Proceeds from share-based awards and other equity transactions

99.8

24.3

  Other share-based award transactions, net

(1.4)

(5.5)

  Repurchases of common stock

(523.2)

(72.6)

  Dividends paid

(62.1)

(39.0)

            Cash used in financing activities

(39.7)

(84.2)

Effect of exchange rate changes on cash

(20.6)

(41.0)

Change in cash and cash equivalents

(46.7)

(76.9)

Cash and cash equivalents, beginning of period

699.2

737.6

Cash and cash equivalents, end of period

$652.5

$660.7

 

 

SOURCE ManpowerGroup