Manpower Inc. (NYSE: MAN) today reported that net income for the three months ended December 31, 2001 declined 52 percent to $26.0 million, or 34 cents per diluted share, from $53.5 million, or 70 cents per diluted share, a year earlier. Revenues for the fourth quarter totaled $2.5 billion, a decline of 7 percent from the year-earlier period. Changes in foreign currency exchange rates between years did not materially impact revenues or net income in the quarter.
Commenting on the results, Manpower Chairman and CEO Jeffrey Joerres stated, "We entered the quarter knowing it was going to be a challenging environment throughout all of the major countries that we operate in, therefore, we were well prepared with our expense controls while we continued to focus on the protection of our customer relationships. As we look to the first quarter of 2002, we do not anticipate an economic turn in most of our global markets, and we expect revenues to lag the prior year. We are estimating earnings for the first quarter to be in the range of 6 to 10 cents per share."
Net income for the year ended December 31, 2001 totaled $124.5 million, or $1.62 per diluted share, a decline of 27 percent from $171.2 million, or $2.22 per diluted share in 2000. Revenues for the year declined 3 percent to $10.5 billion. On a constant currency basis, earnings per share for the year declined 23% on stable revenues.
In conjunction with its fourth quarter earnings release, Manpower will broadcast its conference call live over the Internet on January 30, 2002 at 9:00 a.m. CST (10:00 a.m. EST). Interested parties are invited to listen by logging on to http://investor.manpower.com/ .
Manpower Inc. is a world leader in the staffing industry, providing workforce management services and solutions to customers through 3,900 offices in 61 countries. The firm annually provides employment to more than 2.7 million people worldwide and is an industry leader in employee assessment and training. Manpower also provides a range of staffing solutions, engagement and consulting services worldwide under the subsidiary brands of Brook Street, Elan, The Empower Group and Jefferson Wells. More information on Manpower Inc. can be found at the company's website, http://www.manpower.com/ .
This news release contains statements, including revenue and earning 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 current report on Form 8-K dated August 14, 2001, which information is incorporated herein by reference, and such other factors as may be described from time to time in the Company's SEC filings.
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended
December 31
2001 2000 Var.
(Unaudited)
Systemwide sales $2,823.7 $3,121.3 -9.5%
Revenue from services 2,536.4 2,739.5 -7.4%
Cost of services 2,057.5 2,223.9 -7.5%
Gross profit 478.9 515.6 -7.1%
SG&A expenses 424.6 420.7 0.9%
Operating profit 54.3 94.9 -42.7%
Interest and other expenses 10.4 12.2 -13.7%
Earnings before income taxes 43.9 82.7 -47.0%
Provision for income taxes 17.9 29.2 -38.3%
Net earnings $ 26.0 $ 53.5 -51.7%
Net earnings per share:
Basic $ 0.34 $ 0.71 -52.1%
Diluted $ 0.34 $ 0.70 -51.4%
Weighted average shares:
Basic 76.0 75.7 0.4%
Diluted 77.0 76.8 0.2%
Manpower Inc.
Results of Operations
(In millions, except per share data)
Year Ended
December 31
2001 2000 Var.
Systemwide sales $11,779.1 $12,444.9 -5.3%
Revenue from services 10,483.8 10,842.8 -3.3%
Cost of services 8,527.3 8,896.1 -4.1%
Gross profit 1,956.5 1,946.7 0.5%
SG&A expenses 1,718.9 1,635.7 5.1%
Operating profit 237.6 311.0 -23.6%
Interest and other expenses 39.7 45.8 -13.2%
Earnings before income taxes 197.9 265.2 -25.4%
Provision for income taxes 73.4 94.0 -21.8%
Net earnings $ 124.5 $ 171.2 -27.3%
Net earnings per share:
Basic $ 1.64 $ 2.26 -27.4%
Diluted $ 1.62 $ 2.22 -27.0%
Weighted average shares:
Basic 75.9 75.9 0.0%
Diluted 77.0 77.1 -0.1%
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended December 31
% Variance
Amount Constant
2001 2000 Reported Currency
(Unaudited)
Revenues from services:
United States (a) $ 451.2 $ 601.9 -25.0% -25.0%
France 887.1 968.2 -8.4% -11.0%
United Kingdom 361.0 372.6 -3.1% -2.8%
Other Europe 483.3 496.7 -2.7% -3.8%
Other Countries 353.8 300.1 17.8% 26.1%
$2,536.4 $2,739.5 -7.4% -7.6%
Operating Unit Profit:
United States $ 0.5 $ 21.1 -97.7% -97.7%
France 36.8 39.0 -5.8% -8.5%
United Kingdom 10.8 13.7 -20.8% -21.1%
Other Europe 18.3 31.9 -42.5% -43.6%
Other Countries 2.8 3.7 -18.0% 3.0%
69.2 109.4
Corporate expenses 10.1 11.2
Amortization of intangibles 4.8 3.3
Operating profit 54.3 94.9 -42.7% -43.4%
Interest and other expense (b) 10.4 12.2
Earnings before taxes $ 43.9 $ 82.7
Footnotes:
(a) Total systemwide sales in the United States, which includes sales of
Company-owned branches and franchises were $694.6 and $936.8 for 2001
and 2000, respectively.
(b) The components of interest and other expense (income) were:
Interest expense $ 10.9 $ 9.4
Interest income (2.8) (1.8)
Translation loss (gain) 0.7 0.4
Loss on sale of accounts
receivable 0.2 2.4
Miscellaneous 1.4 1.8
$ 10.4 $ 12.2
Manpower Inc.
Operating Unit Results
(In millions)
Year Ended December 31
% Variance
Amount Constant
2001 2000 Reported Currency
Revenues from services:
United States (a) $ 2,003.4 $ 2,413.5 -17.0% -17.0%
France 3,766.4 3,939.2 -4.4% -1.6%
United Kingdom 1,489.3 1,453.1 2.5% 7.9%
Other Europe 1,939.4 1,896.3 2.3% 6.8%
Other Countries 1,285.3 1,140.7 12.7% 22.4%
$10,483.8 $10,842.8 -3.3% 0.4%
Operating Unit Profit:
United States $ 29.5 $ 84.6 -65.2% -65.2%
France 135.7 130.6 3.9% 6.5%
United Kingdom 44.5 46.2 -3.8% 1.3%
Other Europe 75.9 89.1 -14.8% -11.5%
Other Countries 8.9 13.2 -31.9% -15.1%
294.5 363.7
Corporate expenses 39.9 39.4
Amortization of intangibles 17.0 13.3
Operating profit 237.6 311.0 -23.6% -20.0%
Interest and other expense (b) 39.7 45.8
Earnings before taxes $ 197.9 $ 265.2
Footnotes:
(a) Total systemwide sales in the United States, which includes sales of
Company-owned branches and franchises were $3,114.8 and $3,814.9 for
2001 and 2000, respectively.
(b) The components of interest and other expense (income) were:
Interest expense $ 39.1 $ 35.0
Interest income (10.3) (7.3)
Translation loss (gain) 0.2 2.3
Loss on sale of accounts
receivable 5.3 9.8
Miscellaneous 5.4 6.0
$ 39.7 $ 45.8
Manpower Inc.
Consolidated Balance Sheets
(In millions)
Dec. 31 Dec. 31
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 245.8 $ 181.7
Accounts receivable, net 1,917.8 2,094.4
Prepaid expenses and other assets 77.0 51.8
Future income tax benefits 73.8 68.8
Total current assets 2,314.4 2,396.7
Other assets:
Intangible assets, net 480.8 247.6
Investments in licensees 44.7 41.8
Other assets 204.7 163.9
Total other assets 730.2 453.3
Property and equipment:
Land, buildings, leasehold
improvements and equipment 465.4 440.9
Less: accumulated depreciation and
amortization 271.4 249.3
Net property and equipment 194.0 191.6
Total assets $3,238.6 $3,041.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 382.1 $ 453.1
Employee compensation payable 93.2 81.2
Accrued liabilities 234.9 269.2
Accrued payroll taxes and insurance 300.8 341.8
Value added taxes payable 255.9 311.0
Short-term borrowings and current
maturities of long-term debt 23.7 65.9
Total current liabilities 1,290.6 1,522.2
Other liabilities:
Long-term debt 811.1 491.6
Other long-term liabilities 322.6 287.4
Total other liabilities 1,133.7 779.0
Shareholders' equity:
Common stock 0.9 0.8
Capital in excess of par value 1,644.9 1,631.4
Accumulated deficit (387.6) (496.9)
Accumulated other comprehensive
income (loss) (190.8) (145.1)
Treasury stock, at cost (253.1) (249.8)
Total shareholders' equity 814.3 740.4
Total liabilities and
shareholders' equity $3,238.6 $3,041.6
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
Year Ended
December 31
2001 2000
Cash Flows from Operating Activities:
Net earnings $124.5 $171.2
Adjustments to reconcile net
earnings to net
cash provided by operating
activities:
Depreciation and amortization 80.2 66.8
Deferred income taxes (7.3) (15.8)
Provision for doubtful accounts 23.8 21.7
Changes in operating assets and
liabilities:
Amounts advanced under the
Receivables Facility (145.0) (55.0)
Accounts receivable 217.3 (261.2)
Other assets (69.1) (32.6)
Other liabilities (88.4) 262.8
Cash provided by operating
activities 136.0 157.9
Cash Flows from Investing Activities:
Capital expenditures (87.3) (82.6)
Acquisitions of business, net of
cash acquired (295.9) (172.4)
Proceeds from the sale of property
and equipment 16.1 7.3
Net cash used by investing
activities (367.1) (247.7)
Cash Flows from Financing Activities:
Net borrowings from short-term
facilities
and long-term debt 313.0 71.8
Proceeds from stock option and
purchase plans 13.6 10.0
Repurchase of common stock (3.3) (20.0)
Dividends paid (15.2) (15.1)
Net cash provided by
financing activities 308.1 46.7
Effect of exchange rate changes on
cash (12.9) (16.9)
Change in cash and cash equivalents 64.1 (60.0)
Cash and cash equivalents, beginning
of period 181.7 241.7
Cash and cash equivalents, end of
period $245.8 $181.7
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SOURCE: Manpower Inc.
Contact: Mike Van Handel, Chief Financial Officer of Manpower Inc.,
+1-414-906-6305
Website: http://www.manpower.com/
http://investor.manpower.com/
