Manpower Inc. (NYSE: MAN) today reported that net income for the three months ended September 30, 2000 rose 11 percent to $54.1 million, or 70 cents per diluted share, from $48.9 million, or 63 cents per diluted share, a year earlier. Revenues for the third quarter totaled $2.8 billion, a gain of 8 percent from the year-earlier period. Results for the third quarter were affected by the decline in the Euro. On a constant currency basis earnings per share rose 24% on an 18% revenue gain.
"Europe, which totals nearly 70% of our business, grew revenue at 20% and drove profits up 34% in constant currency," stated Manpower President and CEO Jeffrey A. Joerres. "We continue to see high growth in several countries in Europe, particularly in Sweden, Italy and Germany, which will further enhance our global diversification.
"Throughout the last nine months we have continued to invest in office openings and specialty services. During the first nine months of 2000 we have opened more than 230 offices and we recently acquired an additional company for The Empower Group - CSA of London," said Joerres.
Joerres added, "We are comfortable with the analysts' consensus estimate of earnings per share for the balance of the year." He also stated that "the company continues to target a constant currency earnings per share growth rate of 15% for 2001."
Net income for the nine months ended September 30, 2000 totaled $117.7 million, or $1.52 per diluted share, up 16 percent from $101.3 million, or $1.29 per diluted share in 1999. Revenues for the nine-month period rose 14 percent to $8.1 billion, while systemwide sales grew 11 percent to $9.3 billion.
In conjunction with its third quarter earnings release, Manpower will broadcast its conference call live over the Internet on October 31, 2000 at 9:00 CST. Interested parties are invited to listen by logging on to http://www.videonewswire.com/MANPOWER/103100/.
This news release contains statements 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. Factors that may cause the Company's actual results to differ materially from those contained in the forward-looking statement can be found in the Company's reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 1999, which information is incorporated herein by reference.
Manpower Inc. is a world leader in the staffing industry, providing workforce management services and solutions to customers through more than 3,600 offices in 54 countries. The firm annually provides employment to more than 2 million people worldwide and is an industry leader in employee assessment and training. Manpower also offers organizational performance consulting services worldwide through its independent operating division, The Empower Group. More information on Manpower Inc. can be found at the company's website, http://www.manpower.com/ . More information can also be found about The Empower Group at its website, http://www.empowergrp.com/ .
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended Sept. 30 Nine Months Ended Sept. 30
2000 1999 Variance 2000 1999 Variance
Systemwide sales $3,226.1 $3,071.4 5.0% $9,323.6 $8,390.0 11.1%
Revenue from
services 2,820.9 2,606.8 8.2% 8,103.3 7,109.6 14.0%
Cost of services 2,313.5 2,155.0 7.4% 6,672.2 5,872.9 13.6%
Gross profit 507.4 451.8 12.3% 1,431.1 1,236.7 15.7%
Selling and
administrative
expenses 411.5 369.0 11.5% 1,215.0 1,089.7 11.5%
Operating profit 95.9 82.8 15.7% 216.1 147.0 46.9%
Interest and other
expenses 12.1 7.1 69.4% 33.6 16.9 97.3%
Earnings before
income taxes 83.8 75.7 10.7% 182.5 130.1 40.4%
Provision for
income taxes 29.7 26.8 10.8% 64.8 28.8 125.2%
Net earnings $54.1 $48.9 10.6% $117.7 $101.3 16.2%
Net earnings per
share -- basic $0.71 $0.64 10.9% $1.55 $1.30 19.2%
Net earnings per
share -- diluted $0.70 $0.63 11.1% $1.52 $1.29 17.8%
Weighted average
shares -- basic 75.8 76.2 (0.5%) 76.0 77.7 (2.2%)
Weighted average
shares -- diluted 77.1 77.1 (0.0%) 77.2 78.5 (1.7%)
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Revenues from services:
United States (a) $638.1 $583.5 $1,811.6 $1,659.5
France 1,036.4 1,045.2 2,971.0 2,766.5
United Kingdom 368.3 306.1 1,080.5 843.6
Other Europe 480.3 438.2 1,399.6 1,196.3
Other Countries 297.8 233.8 840.6 643.7
$2,820.9 $2,606.8 $8,103.3 $7,109.6
Operating Unit Profit:
United States $25.0 $22.5 $63.5 $56.8
France 39.3 33.6 91.6 68.3
United Kingdom 14.9 13.1 32.5 27.4
Other Europe 24.7 20.3 57.2 45.7
Other Countries 4.4 3.7 9.5 7.5
108.3 93.2 254.3 205.7
Corporate expenses 9.3 8.6 28.2 25.7
Amortization of intangibles 3.1 1.8 10.0 5.0
Non-recurring expenses (b) -- -- -- 28.0
Operating profit 95.9 82.8 216.1 147.0
Interest and other
expense (c) 12.1 7.1 33.6 16.9
Earnings before taxes $83.8 $75.7 $182.5 $130.1
Footnotes:
(a) Total systemwide sales in the United States, which includes sales of
Company-owned branches and franchises were $990.8 and $985.6 for the
three months ended September 30, 2000 and 1999, respectively, and
$2,878.1 and $2,766.5 for the nine months ended September 30, 2000
(b) Represents non-recurring items ($16.4 after tax) in the second quarter
of 1999 related to employee severances, retirement costs and other
associated
(c) The components of interest and other expense (income) were:
Interest expense $9.8 $4.9 $25.6 $12.7
Interest income (1.8) (1.7) (5.5) (5.7)
Translation loss (gain) 0.5 0.1 1.9 1.0
Loss on sale of
accounts receivable 2.1 2.5 7.4 7.1
Other 1.5 1.3 4.2 1.8
$12.1 $7.1 $33.6 $16.9
Manpower Inc.
Condensed Balance Sheets
(In millions)
Sept. 30 Dec. 31,
2000 1999
(Unaudited)
Current assets:
Cash and cash equivalents $175.3 $241.7
Accounts receivable 2,090.7 1,897.6
Prepaid expenses and other assets 114.2 118.0
Total current assets 2,380.2 2,257.3
Other assets 421.2 279.0
Property and equipment 173.2 182.4
Total assets $2,974.6 $2,718.7
Current liabilities:
Accounts payable $443.1 $388.0
Employee compensation payable 79.7 71.9
Accrued liabilities 224.2 180.2
Accrued payroll taxes and insurance 321.0 340.9
Value added taxes payable 318.7 305.6
Short-term borrowings and current
maturities of long-term debt 126.4 131.5
Total current liabilities 1,513.1 1,418.1
Other liabilities:
Long-term debt 491.1 357.5
Other long-term liabilities 295.1 292.5
Total other liabilities 786.2 650.0
Shareholders' equity 675.3 650.6
Total liabilities and shareholders' equity $2,974.6 $2,718.7
SOURCE: Manpower Inc.
Contact: Mike Van Handel, Chief Financial Officer of Manpower Inc.,
414-906-6305
Website: http://www.empowergrp.com/
Website: http://www.manpower.com/
