Manpower Inc. (NYSE: MAN) today reported that earnings per diluted share for the three months ended June 30, 2010 were 40 cents compared to 21 cents in the prior year period. Net earnings in the quarter were $32.7 million compared to $16.3 million a year earlier. Revenues for the second quarter were $4.6 billion, an increase of 21 percent from the year earlier period, or an increase of 24 percent in constant currency.
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Second quarter 2010 results include the COMSYS acquisition which was completed on April 5, 2010. Revenue growth on an organic basis, excluding the impact of COMSYS was 16%, or 19% on a constant currency basis. Second quarter results also include an unfavorable impact from currency of 2 cents per diluted share.
Manpower Inc. Chairman and Chief Executive Officer Jeffrey A. Joerres said, "The improving secular trends are continuing as companies across all major geographies are adding flexible talent to their organizations.
"We are constantly monitoring the economic trends and their potential uncertainties; however, we have not felt any slowdown as we enter the third quarter. Our investments in infrastructure, key initiatives, and an outstanding team were the prime accelerants to the strong performance in the second quarter. Germany, Sweden, U.K., U.S., Canada, Mexico, France and Italy all had extremely strong revenue growth throughout the quarter.
"The integration of COMSYS into our U.S. Professional staffing business is well ahead of schedule, and revenue growth is exceeding expectations.
"We are anticipating the third quarter of 2010 diluted earnings per share to be in the range of 41 cents to 51 cents, which includes an estimated unfavorable currency impact of 4 cents," Joerres stated.
Earnings per diluted share for the six months ended June 30, 2010 were 44 cents compared to 18 cents per diluted share in 2009. Net earnings were $35.5 million compared to $14.5 million in the prior year. Revenues for the six-month period were $8.7 billion, an increase of 17 percent from the prior year or 15 percent in constant currency. Foreign currency exchange rates had a favorable impact of 1 cent for the six-month period.
In conjunction with its second quarter earnings release, Manpower will broadcast its conference call live over the Internet on July 21, 2010 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 innovative workforce solutions; creating and delivering services that enable its clients to win in the changing world of work. With over 60 years of experience, Manpower offers employers a range of services and solutions 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 nearly 4,000 offices in 82 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 www.manpower.com.
Forward-Looking Statements
This news release contains statements, including statements regarding economic trends and 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 December 31, 2009, which information is incorporated herein by reference.
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended June 30
--------------------------
% Variance
----------
Amount Constant
2010 2009 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from services (a)
(b) $4,585.6 $3,793.5 20.9% 23.7%
Cost of services 3,788.6 3,101.2 22.2% 25.1%
------- -------
Gross profit 797.0 692.3 15.1% 17.4%
Selling and administrative
expenses 717.9 673.3 6.6% 8.6%
----- -----
Operating profit 79.1 19.0 314.9% 331.0%
Interest and other
expenses 11.9 10.8 10.2%
---- ----
Earnings before income
taxes 67.2 8.2 712.1% 736.2%
Provision for income taxes 34.5 (8.1) N/A
Net earnings $32.7 $16.3 99.7% 105.6%
===== =====
Net earnings per share -
basic $0.40 $0.21 90.5%
===== =====
Net earnings per share -
diluted $0.40 $0.21 90.5% 157.0%
===== =====
Weighted average shares -
basic 81.5 78.3 4.1%
==== ====
Weighted average shares -
diluted 82.5 78.8 4.7%
==== ====
(a) Revenues from services include fees received from our franchise
offices of $5.8 million for the three months ended
June 30, 2010 and 2009. These fees are primarily based on revenues
generated by the franchise offices, which
were $237.3 million and $174.1 million for the three months ended
June 30, 2010 and 2009, respectively.
(b) Our 2009 results have been restated as disclosed in Note 16 to
the Consolidated Financial Statements included in
our 2009 Annual Report to Shareholders.
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended June 30
--------------------------
% Variance
----------
Amount Constant
2010 2009 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $686.0 $374.3 83.3% 83.3%
Other Americas 306.1 220.7 38.6% 30.9%
992.1 595.0 66.7% 63.9%
----- -----
France 1,255.9 1,100.1 14.2% 22.6%
EMEA:
Italy 258.8 230.1 12.5% 20.6%
Other EMEA (b) 1,433.7 1,255.9 14.2% 18.0%
1,692.5 1,486.0 13.9% 18.4%
------- -------
Asia Pacific 505.7 406.2 24.5% 15.4%
Right Management 98.8 158.1 -37.5% -37.8%
Jefferson Wells 40.6 48.1 -15.8% -15.8%
$4,585.6 $3,793.5 20.9% 23.7%
======== ========
Operating Unit (Loss)
Profit:
Americas:
United States (a) $9.6 $(5.8) N/A N/A
Other Americas 8.6 3.9 121.6% 110.0%
18.2 (1.9) N/A N/A
---- ----
France 9.9 4.2 139.8% 168.6%
EMEA:
Italy 13.5 6.8 99.5% 115.3%
Other EMEA (b) 29.5 (6.9) N/A N/A
43.0 (0.1) N/A N/A
---- ----
Asia Pacific 12.0 3.5 237.3% 215.1%
Right Management 7.8 42.3 -81.5% -81.7%
Jefferson Wells (3.1) (10.2) N/A N/A
87.8 37.8
Corporate expenses (25.1) (18.8)
Reclassification of French
business tax 16.4 -
Operating profit 79.1 19.0 314.9% 331.0%
Interest and other
expenses (c) (11.9) (10.8)
Earnings before income
taxes $67.2 $8.2
===== ====
(a) The United States results include the results of COMSYS IT
Partners, Inc., which was
acquired on April 5, 2010. United States revenues from services
include fees received
from our franchise offices of $3.4 million and $2.4 million for the
three months ended
June 30, 2010 and 2009, respectively. These fees are primarily based
on revenues
generated by the franchise offices, which were $155.8 million and
$107.2 million for
the three months ended June 30, 2010 and 2009, respectively.
(b) Our 2009 results have been restated as disclosed in Note 16 to
the Consolidated
Financial Statements included in our 2009 Annual Report to
Shareholders.
(c) The components of interest and other expenses were:
2010 2009
---- ----
Interest expense $12.5 $13.9
Interest income (1.4) (3.2)
Foreign exchange losses 0.9 1.0
Miscellaneous income, net (0.1) (0.9)
$11.9 $10.8
===== =====
Manpower Inc.
Results of Operations
(In millions, except per share data)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2010 2009 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from services
(a) (b) $8,684.9 $7,436.5 16.8% 14.6%
Cost of services 7,186.4 6,078.5 18.2% 16.0%
------- -------
Gross profit 1,498.5 1,358.0 10.3% 8.2%
Selling and
administrative
expenses 1,386.8 1,337.6 3.7% 1.6%
------- -------
Operating profit 111.7 20.4 447.6% 441.4%
Interest and other
expenses 24.8 22.7 9.4%
---- ----
Earnings (loss) before
income taxes 86.9 (2.3) N/A N/A
Provision for income
taxes 51.4 (16.8) N/A
Net earnings $35.5 $14.5 143.9% 140.0%
===== =====
Net earnings per share
-basic $0.44 $0.19 131.6%
===== =====
Net earnings per share
-diluted $0.44 $0.18 144.4% 264.9%
===== =====
Weighted average shares
-basic 80.1 78.2 2.4%
==== ====
Weighted average shares
-diluted 81.2 78.6 3.4%
==== ====
(a) Revenues from services include fees received from our franchise
offices of $10.4 million and $10.9
million for the six months ended June 30, 2010 and 2009,
respectively. These fees are primarily
based on revenues generated by the franchise offices, which were
$431.2 million and $333.0 million
for the six months ended June 30, 2010 and 2009, respectively.
(b) Our 2009 results have been restated as disclosed in Note 16 to
the Consolidated Financial Statements
included in our 2009 Annual Report to Shareholders.
Manpower Inc.
Operating Unit Results
(In millions)
Six Months Ended June 30
------------------------
% Variance
----------
Amount Constant
2010 2009 Reported Currency
---- ---- -------- --------
(Unaudited)
Revenues from Services:
Americas:
United States (a) $1,128.1 $748.1 50.8% 50.8%
Other Americas 600.6 439.9 36.5% 26.9%
1,728.7 1,188.0 45.5% 41.9%
------- -------
France 2,363.4 2,057.0 14.9% 16.4%
EMEA:
Italy 493.0 450.5 9.4% 10.7%
Other EMEA (b) 2,813.3 2,514.7 11.9% 9.2%
3,306.3 2,965.2 11.5% 9.4%
------- -------
Asia Pacific 1,003.2 831.4 20.7% 10.2%
Right Management 202.1 294.1 -31.3% -33.2%
Jefferson Wells 81.2 100.8 -19.5% -19.5%
$8,684.9 $7,436.5 16.8% 14.6%
======== ========
Operating Unit (Loss) Profit:
Americas:
United States (a) $1.2 $(20.3) N/A N/A
Other Americas 18.2 8.7 110.2% 97.4%
19.4 (11.6) N/A N/A
---- -----
France 10.1 5.2 96.2% 122.1%
EMEA:
Italy 20.3 8.2 148.6% 157.7%
Other EMEA (b) 46.3 (10.3) N/A N/A
66.6 (2.1) N/A N/A
---- ----
Asia Pacific 24.5 15.6 57.0% 41.9%
Right Management 20.3 71.4 -71.5% -72.1%
Jefferson Wells (7.8) (17.7) N/A N/A
133.1 60.8
Corporate expenses (51.5) (40.4)
Reclassification of French
business tax 30.1 -
Operating profit 111.7 20.4 447.6% 441.4%
Interest and other expenses (c) (24.8) (22.7)
Earnings (loss) before income
taxes $86.9 $(2.3)
===== =====
(a) The United States results include the results of COMSYS IT
Partners, Inc., which
was acquired on April 5, 2010. United States, revenues from services
include
fees received from our franchise offices of $5.9 million and $4.4
million for the
six months ended June 30, 2010 and 2009, respectively. These fees
are
primarily based on revenues generated by the franchise offices, which
were
$288.0 million and $202.1 million for the years ended June 30, 2010 and
2009, respectively.
(b) Our 2009 results have been restated as disclosed in Note 16 to
the Consolidated
Financial Statements included in our 2009 Annual Report to
Shareholders.
(c) The components of interest and other expenses were:
2010 2009
---- ----
Interest expense $23.6 $27.0
Interest income (3.0) (7.6)
Foreign exchange losses 2.8 1.5
Miscellaneous expenses,
net 1.4 1.8
$24.8 $22.7
===== =====
Manpower Inc.
Consolidated Balance Sheets
(In millions)
Jun. 30 Dec. 31
2010 2009
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $552.5 $1,014.6
Accounts receivable, net 3,415.7 3,070.8
Prepaid expenses and other assets 172.4 179.6
Future income tax benefits 65.4 67.4
Total current assets 4,206.0 4,332.4
Other assets:
Goodwill and other intangible assets,
net 1,732.3 1,357.5
Other assets 326.9 347.5
Total other assets 2,059.2 1,705.0
Property and equipment:
Land, buildings, leasehold
improvements and equipment 655.0 703.6
Less: accumulated depreciation and
amortization 492.3 527.2
Net property and equipment 162.7 176.4
Total assets $6,427.9 $6,213.8
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,193.4 $944.4
Employee compensation payable 184.6 187.8
Accrued liabilities 426.4 465.9
Accrued payroll taxes and insurance 543.9 572.0
Value added taxes payable 407.2 391.2
Short-term borrowings and current
maturities of long-term debt 36.1 41.7
Total current liabilities 2,791.6 2,603.0
Other liabilities:
Long-term debt 611.9 715.6
Other long-term liabilities 396.0 358.7
Total other liabilities 1,007.9 1,074.3
Shareholders' equity:
Common stock 1.0 1.0
Capital in excess of par value 2,758.9 2,544.2
Retained earnings 1,114.5 1,109.6
Accumulated other comprehensive
(loss) income (20.0) 106.9
Treasury stock, at cost (1,226.0) (1,225.2)
Total shareholders' equity 2,628.4 2,536.5
Total liabilities and shareholders'
equity $6,427.9 $6,213.8
======== ========
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
Six Months Ended
June 30
-------
2010 2009
---- ----
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $35.5 $14.5
Adjustments to reconcile net earnings to
net
cash provided by operating activities:
Depreciation and amortization 50.5 46.9
Deferred income taxes (6.9) (27.5)
Provision for doubtful accounts 13.5 13.7
Share-based compensation 11.5 7.5
Excess tax benefit on exercise of stock
options (0.8) (0.1)
Changes in operating assets and
liabilities, excluding
the impact of acquisitions:
Accounts receivable (480.1) 759.5
Other assets (26.3) (40.7)
Other liabilities 337.4 (394.5)
Cash (used in) provided by operating
activities (65.7) 379.3
----- -----
Cash Flows from Investing Activities:
Capital expenditures (27.9) (16.9)
Acquisitions of businesses, net of cash
acquired (258.5) (21.7)
Proceeds from the sale of property and
equipment 2.3 2.1
Cash used in investing activities (284.1) (36.5)
------ -----
Cash Flows from Financing Activities:
Net change in short-term borrowings (5.5) (21.7)
Proceeds from long-term debt 1.4 137.3
Repayments of long-term debt (0.8) (200.6)
Proceeds from share-based awards 14.8 5.5
Excess tax benefit on exercise of stock
options 0.8 0.1
Dividends paid (30.6) (29.0)
Cash used in financing activities (19.9) (108.4)
----- ------
Effect of exchange rate changes on cash (92.4) (1.1)
Change in cash and cash equivalents (462.1) 233.3
Cash and cash equivalents, beginning of
period 1,014.6 874.0
Cash and cash equivalents, end of period $552.5 $1,107.3
====== ========
First Call Analyst:
FCMN Contact: linda.granrose@na.manpower.com
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SOURCE: Manpower Inc.
CONTACT: Mike Van Handel of Manpower Inc., +1-414-906-6305,
michael.vanhandel@manpower.com
Web Site: http://www.manpower.com/
