Manpower Inc. (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2008 increased 27%, to $75.5 million, or 94 cents per diluted share, compared to $59.5 million, or 69 cents per diluted share, a year earlier. Revenues for the first quarter were $5.4 billion, an increase of 19 percent from the year earlier period.
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Results for the first quarter were favorably impacted by 14 cents per diluted share as foreign currencies were relatively stronger compared to the first quarter of 2007. On a constant currency basis, revenues increased 8 percent over the prior year period.
Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, "The first quarter performance underscores, once again, the strength of our geographic and service line portfolio. Operations like Elan, Germany and Italy performed extremely well with local currency revenue growth of 43%, 22% and 15%, respectively. In these important markets, while we remain on guard, we do not detect any material slowing in our business.
"While economic conditions remain uncertain in parts of the world, we believe our team, coupled with the strength of our portfolio of services, will deliver solid results in the second quarter. We anticipate our second quarter diluted earnings per share to be in the range of $1.47 to $1.51, which includes an estimated favorable currency impact of 20 cents."
In conjunction with its first quarter earnings release, Manpower will broadcast its conference call live over the Internet on April 18, 2008 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://investor.manpower.com/.
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. Celebrating its 60th anniversary in 2008, the $21 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower's worldwide network of 4,500 offices in 80 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at http://www.manpower.com/.
Forward-Looking Statements
This news release contains statements, including 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 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, 2007, which information is incorporated herein by reference.
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
% Variance
Amount Constant
2008 2007 Reported Currency
(Unaudited)
Revenues from
services(a) $5,386.6 $4,535.6 18.8% 7.6%
Cost of services 4,418.9 3,735.6 18.3%
Gross profit 967.7 800.0 21.0% 9.9%
Selling and
administrative
expenses 835.7 696.7 19.9% 9.7%
Operating profit 132.0 103.3 27.8% 10.8%
Interest and other
expenses 11.3 9.6 18.4%
Earnings before
income taxes 120.7 93.7 28.8% 9.7%
Provision for
income taxes 45.2 34.2 32.1%
Net earnings $75.5 $59.5 26.9% 8.1%
Net earnings per
share - basic $0.95 $0.70 35.7%
Net earnings per
share - diluted $0.94 $0.69 36.2% 15.9%
Weighted average
shares - basic 79.5 84.9 -6.4%
Weighted average
shares - diluted 80.3 86.5 -7.2%
(a) Revenues from services include fees received from our franchise
offices of $7.3 million and $8.4 million for the three months ended
March 31, 2008 and 2007, respectively. These fees are primarily based
on revenues generated by the franchise offices which were
$304.0 million and $362.4 million for the three months ended March 31,
2008 and 2007, respectively.
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended March 31
% Variance
Amount Constant
2008 2007 Reported Currency
(Unaudited)
Revenues from Services:
United States(a) $471.5 $483.6 -2.5% -2.5%
France 1,734.0 1,493.0 16.1% 1.5%
Other EMEA 1,853.7 1,476.4 25.6% 14.6%
Italy 401.2 304.8 31.6% 15.0%
Jefferson Wells 77.4 81.3 -4.7% -4.7%
Right Management 103.3 93.9 10.1% 4.5%
Other Operations 745.5 602.6 23.7% 11.8%
5,386.6 $4,535.6 18.8% 7.6%
Operating Unit Profit:
United States $7.2 $11.5 -37.6% -37.6%
France 54.0 43.9 22.9% 7.3%
Other EMEA 47.7 36.7 30.0% 17.2%
Italy 29.1 16.4 77.0% 54.6%
Jefferson Wells (2.6) 1.0 N/A N/A
Right Management 6.7 6.1 8.9% 9.4%
Other Operations 21.3 12.8 67.8% 49.2%
163.4 128.4
Corporate expenses 28.2 21.9
Amortization of
intangible assets 3.2 3.2
Operating profit 132.0 103.3 27.8% 10.8%
Interest and
other expenses(b) 11.3 9.6
Earnings before
income taxes $120.7 $93.7
(a) In the United States, revenues from services include fees received
from our franchise offices of $4.6 million and $5.3 million for the
three months ended March 31, 2008 and 2007, respectively. These fees
are primarily based on revenues generated by the franchise offices,
which were $212.7 million and $269.1 million for the three months
ended March 31, 2008 and 2007, respectively.
(b) The components of interest and other expenses were:
Interest expense $15.6 $12.0
Interest income (5.1) (5.0)
Foreign exchange
(gain) loss (1.9) 0.1
Miscellaneous
expenses, net 2.7 2.5
$11.3 $9.6
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
Year Ended
Mar. 31
2008 2007
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $75.5 $59.5
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 24.7 21.5
Deferred income taxes (2.1) 15.7
Provision for doubtful accounts 7.3 5.1
Share-based compensation 8.9 5.7
Excess tax benefit on exercise
of stock options (0.1) (2.3)
Changes in operating assets and
liabilities, excluding
the impact of acquisitions:
Accounts receivable 28.6 88.2
Other assets (3.6) (33.4)
Other liabilities (33.4) (57.2)
Cash provided by operating activities 105.8 102.8
Cash Flows from Investing Activities:
Capital expenditures (23.8) (16.8)
Acquisitions of businesses,
net of cash acquired (0.8) (5.0)
Proceeds from the sale of
property and equipment 1.8 1.6
Cash used by investing activities (22.8) (20.2)
Cash Flows from Financing Activities:
Net borrowings of short-term
facilities and long-term debt 10.9 3.8
Proceeds from stock option and purchase plans 8.8 20.0
Excess tax benefit on exercise of stock options 0.1 2.3
Repurchases of common stock (52.7) (72.7)
Cash used by financing activities (32.9) (46.6)
Effect of exchange rate changes on cash 52.9 3.4
Change in cash and cash equivalents 103.0 39.4
Cash and cash equivalents, beginning of period 537.5 687.9
Cash and cash equivalents, end of period $640.5 $727.3
Manpower Inc.
Consolidated Balance Sheets
(In millions)
Mar. 31 Dec. 31
2008 2007
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $640.5 $537.5
Accounts receivable, net 4,724.6 4,478.8
Prepaid expenses and other assets 138.8 122.2
Future income tax benefits 86.6 76.3
Total current assets 5,590.5 5,214.8
Other assets:
Goodwill and other intangible assets, net 1,413.2 1,410.7
Other assets 423.2 377.7
Total other assets 1,836.4 1,788.4
Property and equipment:
Land, buildings, leasehold
improvements and equipment 814.9 760.8
Less: accumulated depreciation
and amortization 584.1 539.6
Net property and equipment 230.8 221.2
Total assets $7,657.7 $7,224.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,176.7 $1,014.4
Employee compensation payable 207.3 213.6
Accrued liabilities 699.2 679.4
Accrued payroll taxes and insurance 699.1 724.7
Value added taxes payable 614.0 583.7
Short-term borrowings and current
maturities of long-term debt 52.5 39.7
Total current liabilities 3,448.8 3,255.5
Other liabilities:
Long-term debt 946.0 874.8
Other long-term liabilities 442.3 424.8
Total other liabilities 1,388.3 1,299.6
Shareholders' equity:
Common stock 1.0 1.0
Capital in excess of par value 2,498.4 2,481.8
Retained earnings 1,115.9 1,040.3
Accumulated other comprehensive income 358.9 257.6
Treasury stock, at cost (1,153.6) (1,111.4)
Total shareholders' equity 2,820.6 2,669.3
Total liabilities and
shareholders' equity $7,657.7 $7,224.4
First Call Analyst:
FCMN Contact: linda.granrose@na.manpower.com
Photo: NewsCom:
http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGOAP Archive:
http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com
SOURCE: Manpower Inc.
CONTACT: Mike Van Handel of Manpower Inc., +1-414-906-6305,
michael.vanhandel@manpower.com
Web site: http://www.manpower.com/
