See more news releases in: Banking & Financial Services, Human Resource & Workforce Management, Earnings
Manpower Reports 1st Quarter 2009 Results
(Logo: http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGO)
Included in the first quarter results is a reorganization charge of
"In the U.S. and French markets, we have experienced revenue stability over the last five weeks, which is the longest string of revenue stability in the U.S. in four quarters. The European geography, in general, has declined and continued to do so throughout the first quarter.
"Our career transition and organizational consulting company, Right Management, had an outstanding quarter - assisting over 60,000 people worldwide to prepare for new careers while contributing significant earnings.
"We anticipate that, despite the difficult economic environment, we will maintain profitability in the second quarter."
In conjunction with its first quarter earnings release, Manpower will broadcast its conference call live over the Internet on
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 the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. Founded in 1948, the
Forward-Looking Statements
This news release contains statements, including statements regarding 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
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
---------------------------
% Variance
Amount Constant
2009 2008 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from services (a) $3,647.1 $5,386.6 -32.3% -21.8%
Cost of services 2,977.3 4,418.9 -32.6% -22.0%
------- -------
Gross profit 669.8 967.7 -30.8% -20.6%
Selling and administrative
expenses 664.3 835.7 -20.5% -9.3%
----- -----
Operating profit 5.5 132.0 -95.8% -92.7%
Interest and other expenses 11.9 11.3 4.6%
---- ----
(Loss) earnings before income
taxes (6.4) 120.7 N/A N/A
Provision for income taxes (8.7) 45.2 N/A
---- ----
Net earnings $2.3 $75.5 -96.9% -97.1%
==== =====
Net earnings per share - basic $0.03 $0.95 -96.8%
===== =====
Net earnings per share - diluted $0.03 $0.94 -96.8% -96.8%
===== =====
Weighted average shares - basic 78.1 79.5 -1.7%
==== ====
Weighted average shares - diluted 78.3 80.3 -2.5%
==== ====
(a) Revenues from services include fees received from our franchise
offices of $5.1 million and $7.3 million for the three months ended
March 31, 2009 and 2008, respectively. These fees are primarily based
on revenues generated by the franchise offices, which were $158.9
million and $304.0 million for the three months ended March 31, 2009
and 2008, respectively.
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended March 31
---------------------------
% Variance
Amount Constant
2009 2008 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services: (a)
Americas:
United States (b) $373.8 $471.5 -20.7% -20.7%
Other Americas 219.2 280.7 -21.9% -5.2%
----- -----
593.0 752.2 -21.2% -14.9%
----- -----
France 956.9 1,734.0 -44.8% -36.6%
EMEA:
Italy 220.4 401.2 -45.1% -36.9%
Other EMEA 1,262.9 1,853.7 -31.9% -14.3%
------- -------
1,483.3 2,254.9 -34.2% -18.3%
------- -------
Asia Pacific 425.2 464.1 -8.3% -7.0%
Right Management 136.0 104.0 30.7% 43.4%
Jefferson Wells 52.7 77.4 -31.9% -31.9%
---- ----
$3,647.1 $5,386.6 -32.3% -21.8%
======== ========
Operating Unit Profit:
Americas:
United States (b) $(14.5) $7.2 N/A N/A
Other Americas 4.8 8.0 -40.3% -30.2%
--- ---
(9.7) 15.2 N/A N/A
---- ----
France 1.0 54.0 -98.1% -97.5%
EMEA:
Italy 1.4 29.1 -95.2% -95.1%
Other EMEA 0.7 47.7 -98.6% -94.1%
--- ----
2.1 76.8 -97.3% -94.5%
--- ----
Asia Pacific 12.1 13.3 -9.0% -15.5%
Right Management 29.1 6.8 327.5% 352.3%
Jefferson Wells (7.5) (2.6) N/A N/A
---- ----
27.1 163.5
Corporate expenses 21.6 31.5
---- ----
Operating profit 5.5 132.0 -95.8% -92.7%
Interest and other expenses (c) 11.9 11.3
---- ----
(Loss) earnings before income
taxes $(6.4) $120.7
===== ======
(a) Our segment reporting has been realigned due to a change in
management structure. Other Americas and Asia Pacific, previously
reported in Other Operations, are now separate reportable segments.
The United States and Other Americas are aggregated into the Americas
segment. Italy and Other EMEA are aggregated into the EMEA segment.
Historical amounts have been restated to conform to the current year
presentation.
(b) In the United States, revenues from services include fees received
from our franchise offices of $2.0 million and $4.6 million for the three
months ended March 31, 2009 and 2008, respectively. These fees are
primarily based on revenues generated by the franchise offices, which
were $94.9 million and $212.7 million for the three months ended March
31, 2009 and 2008, respectively.
(c) The components of interest and other expenses were:
2009 2008
---- ----
Interest expense $13.1 $15.6
Interest income (4.4) (5.1)
Foreign exchange loss (gain) 0.5 (1.9)
Miscellaneous expenses, net 2.7 2.7
--- ---
$11.9 $11.3
===== =====
Manpower Inc.
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2009 2008
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,001.0 $874.0
Accounts receivable, net 2,939.4 3,629.7
Prepaid expenses and other assets 152.5 119.9
Future income tax benefits 62.7 66.5
---- ----
Total current assets 4,155.6 4,690.1
Other assets:
Goodwill and other intangible assets, net 1,376.7 1,388.1
Other assets 294.1 326.6
----- -----
Total other assets 1,670.8 1,714.7
Property and equipment:
Land, buildings, leasehold improvements and
equipment 695.6 744.0
Less: accumulated depreciation and
amortization 500.7 530.6
----- -----
Net property and equipment 194.9 213.4
----- -----
Total assets $6,021.3 $6,618.2
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $890.9 $903.2
Employee compensation payable 170.1 213.2
Accrued liabilities 518.6 577.9
Accrued payroll taxes and insurance 459.7 617.5
Value added taxes payable 354.4 479.2
Short-term borrowings and current
maturities of long-term debt 59.0 115.6
---- -----
Total current liabilities 2,452.7 2,906.6
Other liabilities:
Long-term debt 794.6 837.3
Other long-term liabilities 367.3 390.5
----- -----
Total other liabilities 1,161.9 1,227.8
Shareholders' equity:
Common stock 1.0 1.0
Capital in excess of par value 2,525.4 2,514.8
Retained earnings 1,203.5 1,201.2
Accumulated other comprehensive loss (96.8) (8.9)
Treasury stock, at cost (1,226.4) (1,224.3)
-------- --------
Total shareholders' equity 2,406.7 2,483.8
------- -------
Total liabilities and shareholders'
equity $6,021.3 $6,618.2
======== ========
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
Mar. 31
-------
2009 2008
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $2.3 $75.5
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 23.2 24.7
Deferred income taxes 2.0 (2.1)
Provision for doubtful accounts 6.6 7.3
Share-based compensation 4.1 8.9
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 566.3 28.6
Other assets (41.5) (3.6)
Other liabilities (313.1) (33.4)
------ -----
Cash provided by operating activities 249.8 105.8
----- -----
Cash Flows from Investing Activities:
Capital expenditures (8.9) (23.8)
Acquisitions of businesses, net of cash acquired (10.6) (0.8)
Proceeds from the sale of property and equipment 1.0 1.8
--- ---
Cash used by investing activities (18.5) (22.8)
----- -----
Cash Flows from Financing Activities:
Net (repayments) borrowings of short-term
facilities and long-term debt (55.5) 10.9
Proceeds from share-based awards 4.7 8.8
Excess tax benefit on exercise of stock options 0.1 0.1
Repurchases of common stock - (52.7)
--- -----
Cash used by financing activities (50.7) (32.9)
----- -----
Effect of exchange rate changes on cash (53.6) 52.9
----- ----
Change in cash and cash equivalents 127.0 103.0
Cash and cash equivalents, beginning of period 874.0 537.5
----- -----
Cash and cash equivalents, end of period $1,001.0 $640.5
======== ======
SOURCE Manpower Inc.
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http://www.manpower.com
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