MILWAUKEE, April 21, 2011 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2011 were $35.7 million, or 43 cents per diluted share, compared to net earnings of $2.8 million, or 4 cents per diluted share, a year earlier. Revenues for the first quarter were $5.1 billion, an increase of 24% from the year earlier period, or 22% 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.
Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "ManpowerGroup posted a very solid first quarter, with gains in both revenue and profitability coming from almost all business lines and geographies. Several European and emerging markets showed particularly strong trends.
"During the quarter, we launched the reinvention of the brand with the evolution to ManpowerGroup. We also launched our new brand family and our new professional resourcing company, Experis™.
"Additionally, earlier this month we made an acquisition which is strategically significant – an IT resourcing company in India with 5 locations throughout the country. Not only does this give ManpowerGroup a strong foothold in India, but it also is a springboard for growth throughout the Asia Pacific Middle East region.
"We anticipate that favorable trends will continue into the second quarter, resulting in earnings per share of 74 cents to 82 cents. This includes a favorable impact of 8 cents per share related to currency changes in the quarter."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 21, 2011 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.
ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $19 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world's largest and industry-leading network of nearly 3,900 offices in over 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined – because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. Learn more about how the ManpowerGroup can help you win in the Human Age at www.manpowergroup.com. Enter the Human Age at: www.manpowergroup.com/humanage.
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, 2010, which information is incorporated herein by reference.
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
Revenues from services (a)
Cost of services
Selling and administrative expenses
Interest and other expenses
Earnings before income taxes
Provision for income taxes
Net earnings per share - basic
Net earnings per share - diluted
Weighted average shares - basic
Weighted average shares - diluted
(a) Revenues from services include fees received from our franchise offices of $5.9 million and $4.6 million for the three months ended March 31, 2011 and 2010, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $274.5 million and $193.9 million for the three months ended March 31, 2011 and 2010, respectively.
Operating Unit Results
Three Months Ended March 31
Revenues from Services: (a)
United States (b)
Other Southern Europe
Operating Unit Profit (Loss): (a)
Other Southern Europe
Intangible asset amortization expense
Reclassification of French business tax
Interest and other expenses (c)
Earnings before income taxes
(a) Effective January 1, 2011, we created a new organizational structure in Europe in order to elevate our service quality throughout Europe, Middle East and Africa. Other Southern Europe and Northern Europe, previously reported in Other EMEA, are now separate reportable segments. France, Italy, and Other Southern Europe are aggregated into our Southern Europe reportable segment. All previously reported results have been restated to conform to the current year presentation. Additionally, we changed the name of our Asia Pacific reportable segment to APME; the results of this reportable segment have not been restated as only the name has changed.
(b) In the United States, revenues from services include fees received from our franchise offices of $2.7 million and $2.5 million for the three months ended March 31, 2011 and 2010, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $148.5 million and $132.2 million for the three months ended March 31, 2011 and 2010, respectively.
(c) The components of interest and other expenses were:
Foreign exchange losses
Miscellaneous expenses, net
Consolidated Balance Sheets
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses and other assets
Future income tax benefits
Total current assets
Goodwill and other intangible assets, net
Total other assets
Property and equipment:
Land, buildings, leasehold improvements and equipment
Less: accumulated depreciation and amortization
Net property and equipment
LIABILITIES AND SHAREHOLDERS' EQUITY
Employee compensation payable
Accrued payroll taxes and insurance
Value added taxes payable
Short-term borrowings and current maturities of long-term debt
Total current liabilities
Other long-term liabilities
Total other liabilities
Capital in excess of par value
Accumulated other comprehensive income
Treasury stock, at cost
Total shareholders' equity
Total liabilities and shareholders' equity
Consolidated Statements of Cash Flows
Three Months Ended
Cash Flows from Operating Activities:
Adjustments to reconcile net earnings to net
cash used in operating activities:
Depreciation and amortization
Deferred income taxes
Provision for doubtful accounts
Excess tax benefit on exercise of stock options
Changes in operating assets and liabilities, excluding