Wisconsin | 1-10686 | 39-1672779 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
100 Manpower Place | |
Milwaukee, Wisconsin | 53212 |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description |
99.1 | Press Release dated October 21, 2016 |
99.2 | Presentation materials for October 21, 2016 conference call |
MANPOWERGROUP INC. | ||||
Dated: October 21, 2016 | By: | /s/ John T. McGinnis | ||
John T. McGinnis Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press Release dated October 21, 2016 |
99.2 | Presentation materials for October 21, 2016 conference call |
ManpowerGroup | |||||||||||||
Results of Operations | |||||||||||||
(In millions, except per share data) | |||||||||||||
Three Months Ended September 30 | |||||||||||||
% Variance | |||||||||||||
Amount | Constant | ||||||||||||
2016 | 2015 | Reported | Currency | ||||||||||
(Unaudited) | |||||||||||||
Revenues from services (a) | $ | 5,088.2 | $ | 4,972.5 | 2.3 | % | 3.8 | % | |||||
Cost of services | 4,229.9 | 4,120.4 | 2.7 | % | 4.1 | % | |||||||
Gross profit | 858.3 | 852.1 | 0.7 | % | 1.9 | % | |||||||
Selling and administrative expenses | 647.2 | 645.8 | 0.2 | % | 1.3 | % | |||||||
Operating profit | 211.1 | 206.3 | 2.3 | % | 3.7 | % | |||||||
Interest and other expenses | 11.4 | 9.4 | 21.4 | % | |||||||||
Earnings before income taxes | 199.7 | 196.9 | 1.4 | % | 2.9 | % | |||||||
Provision for income taxes | 70.5 | 73.0 | -3.5 | % | |||||||||
Net earnings | $ | 129.2 | $ | 123.9 | 4.3 | % | 6.0 | % | |||||
Net earnings per share - basic | $ | 1.89 | $ | 1.63 | 16.0 | % | |||||||
Net earnings per share - diluted | $ | 1.87 | $ | 1.61 | 16.1 | % | 18.0 | % | |||||
Weighted average shares - basic | 68.4 | 76.1 | -10.1 | % | |||||||||
Weighted average shares - diluted | 69.0 | 77.0 | -10.3 | % | |||||||||
(a) Revenues from services include fees received from our franchise offices of $6.3 million and $6.6 million for the three months ended September 30, 2016 and 2015, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $273.1 million and $286.4 million for the three months ended September 30, 2016 and 2015, respectively. |
ManpowerGroup | |||||||||||||
Operating Unit Results | |||||||||||||
(In millions) | |||||||||||||
Three Months Ended September 30 | |||||||||||||
% Variance | |||||||||||||
Amount | Constant | ||||||||||||
2016 | 2015 | Reported | Currency | ||||||||||
(Unaudited) | |||||||||||||
Revenues from Services: | |||||||||||||
Americas: | |||||||||||||
United States (a) | $ | 723.7 | $ | 769.6 | -6.0 | % | -6.0 | % | |||||
Other Americas | 383.7 | 367.0 | 4.5 | % | 15.7 | % | |||||||
1,107.4 | 1,136.6 | -2.6 | % | 1.0 | % | ||||||||
Southern Europe: | |||||||||||||
France | 1,277.8 | 1,242.5 | 2.8 | % | 2.5 | % | |||||||
Italy | 299.0 | 324.4 | -7.8 | % | -8.1 | % | |||||||
Other Southern Europe | 389.5 | 364.4 | 6.9 | % | 6.6 | % | |||||||
1,966.3 | 1,931.3 | 1.8 | % | 1.5 | % | ||||||||
Northern Europe | 1,300.1 | 1,267.5 | 2.6 | % | 8.8 | % | |||||||
APME | 650.9 | 570.2 | 14.1 | % | 6.5 | % | |||||||
Right Management | 63.5 | 66.9 | -5.0 | % | -3.7 | % | |||||||
$ | 5,088.2 | $ | 4,972.5 | 2.3 | % | 3.8 | % | ||||||
Operating Unit Profit: | |||||||||||||
Americas: | |||||||||||||
United States | $ | 41.0 | $ | 45.5 | -9.9 | % | -9.9 | % | |||||
Other Americas | 14.0 | 13.2 | 5.5 | % | 17.1 | % | |||||||
55.0 | 58.7 | -6.5 | % | -3.8 | % | ||||||||
Southern Europe: | |||||||||||||
France | 68.9 | 74.9 | -8.1 | % | -8.3 | % | |||||||
Italy | 18.4 | 17.5 | 5.1 | % | 4.8 | % | |||||||
Other Southern Europe | 13.7 | 13.1 | 4.9 | % | 4.6 | % | |||||||
101.0 | 105.5 | -4.3 | % | -4.5 | % | ||||||||
Northern Europe | 53.9 | 44.5 | 21.1 | % | 28.4 | % | |||||||
APME | 25.3 | 23.9 | 6.5 | % | 0.3 | % | |||||||
Right Management | 8.8 | 10.7 | -17.8 | % | -18.3 | % | |||||||
244.0 | 243.3 | ||||||||||||
Corporate expenses | (23.9 | ) | (28.9 | ) | |||||||||
Intangible asset amortization expense | (9.0 | ) | (8.1 | ) | |||||||||
Operating profit | 211.1 | 206.3 | 2.3 | % | 3.7 | % | |||||||
Interest and other expenses (b) | (11.4 | ) | (9.4 | ) | |||||||||
Earnings before income taxes | $ | 199.7 | $ | 196.9 | |||||||||
(a) In the United States, revenues from services include fees received from our franchise offices of $4.1 million and $4.2 million for the three months ended September 30, 2016 and 2015, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $179.8 million and $186.3 million for the three months ended September 30, 2016 and 2015, respectively. | |||||||||||||
(b) The components of interest and other expenses were: | |||||||||||||
2016 | 2015 | ||||||||||||
Interest expense | $ | 9.2 | $ | 9.2 | |||||||||
Interest income | (1.0 | ) | (0.7 | ) | |||||||||
Foreign exchange gain | — | (0.2 | ) | ||||||||||
Miscellaneous expenses, net | 3.2 | 1.1 | |||||||||||
$ | 11.4 | $ | 9.4 |
ManpowerGroup | |||||||||||||
Results of Operations | |||||||||||||
(In millions, except per share data) | |||||||||||||
Nine Months Ended September 30 | |||||||||||||
% Variance | |||||||||||||
Amount | Constant | ||||||||||||
2016 | 2015 | Reported | Currency | ||||||||||
(Unaudited) | |||||||||||||
Revenues from services (a) | $ | 14,698.0 | $ | 14,376.0 | 2.2 | % | 4.5 | % | |||||
Cost of services | 12,205.2 | 11,931.3 | 2.3 | % | 4.6 | % | |||||||
Gross profit | 2,492.8 | 2,444.7 | 2.0 | % | 3.8 | % | |||||||
Selling and administrative expenses | 1,954.0 | 1,936.9 | 0.9 | % | 2.7 | % | |||||||
Operating profit | 538.8 | 507.8 | 6.1 | % | 7.9 | % | |||||||
Interest and other expenses | 34.4 | 27.2 | 26.3 | % | |||||||||
Earnings before income taxes | 504.4 | 480.6 | 4.9 | % | 6.7 | % | |||||||
Provision for income taxes | 188.1 | 185.3 | 1.5 | % | |||||||||
Net earnings | $ | 316.3 | $ | 295.3 | 7.1 | % | 9.1 | % | |||||
Net earnings per share - basic | $ | 4.46 | $ | 3.80 | 17.4 | % | |||||||
Net earnings per share - diluted | $ | 4.42 | $ | 3.75 | 17.9 | % | 20.0 | % | |||||
Weighted average shares - basic | 70.9 | 77.7 | -8.7 | % | |||||||||
Weighted average shares - diluted | 71.6 | 78.7 | -9.0 | % | |||||||||
(a) Revenues from services include fees received from our franchise offices of $17.2 million and $18.1 million for the nine months ended September 30, 2016 and 2015, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $762.1 million and $812.6 million for the nine months ended September 30, 2016 and 2015, respectively. |
ManpowerGroup | |||||||||||||
Operating Unit Results | |||||||||||||
(In millions) | |||||||||||||
Nine Months Ended September 30 | |||||||||||||
% Variance | |||||||||||||
Amount | Constant | ||||||||||||
2016 | 2015 | Reported | Currency | ||||||||||
(Unaudited) | |||||||||||||
Revenues from Services: | |||||||||||||
Americas: | |||||||||||||
United States (a) | $ | 2,152.1 | $ | 2,257.3 | -4.7 | % | -4.7 | % | |||||
Other Americas | 1,082.2 | 1,094.4 | -1.1 | % | 16.2 | % | |||||||
3,234.3 | 3,351.7 | -3.5 | % | 2.1 | % | ||||||||
Southern Europe: | |||||||||||||
France | 3,608.8 | 3,485.9 | 3.5 | % | 3.3 | % | |||||||
Italy | 861.9 | 913.8 | -5.7 | % | -5.8 | % | |||||||
Other Southern Europe | 1,114.7 | 1,044.3 | 6.8 | % | 6.6 | % | |||||||
5,585.4 | 5,444.0 | 2.6 | % | 2.4 | % | ||||||||
Northern Europe | 3,836.3 | 3,717.0 | 3.2 | % | 7.6 | % | |||||||
APME | 1,841.7 | 1,659.9 | 10.9 | % | 9.3 | % | |||||||
Right Management | 200.3 | 203.4 | -1.5 | % | 0.4 | % | |||||||
$ | 14,698.0 | $ | 14,376.0 | 2.2 | % | 4.5 | % | ||||||
Operating Unit Profit: | |||||||||||||
Americas: | |||||||||||||
United States | $ | 103.8 | $ | 104.6 | -0.8 | % | -0.8 | % | |||||
Other Americas | 39.4 | 40.5 | -2.7 | % | 13.9 | % | |||||||
143.2 | 145.1 | -1.4 | % | 3.3 | % | ||||||||
Southern Europe: | |||||||||||||
France | 183.6 | 192.1 | -4.4 | % | -5.0 | % | |||||||
Italy | 57.3 | 51.3 | 11.7 | % | 11.2 | % | |||||||
Other Southern Europe | 34.1 | 29.1 | 17.1 | % | 16.6 | % | |||||||
275.0 | 272.5 | 0.9 | % | 0.4 | % | ||||||||
Northern Europe | 124.2 | 108.6 | 14.3 | % | 18.8 | % | |||||||
APME | 66.8 | 61.2 | 9.5 | % | 7.7 | % | |||||||
Right Management | 32.8 | 28.0 | 16.9 | % | 18.1 | % | |||||||
642.0 | 615.4 | ||||||||||||
Corporate expenses | (76.2 | ) | (84.5 | ) | |||||||||
Intangible asset amortization expense | (27.0 | ) | (23.1 | ) | |||||||||
Operating profit | 538.8 | 507.8 | 6.1 | % | 7.9 | % | |||||||
Interest and other expenses (b) | (34.4 | ) | (27.2 | ) | |||||||||
Earnings before income taxes | $ | 504.4 | $ | 480.6 | |||||||||
(a) In the United States, revenues from services include fees received from our franchise offices of $11.1 million and $11.5 million for the nine months ended September 30, 2016 and 2015, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $511.5 million and $539.6 million for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||
(b) The components of interest and other expenses were: | |||||||||||||
2016 | 2015 | ||||||||||||
Interest expense | $ | 27.9 | $ | 25.4 | |||||||||
Interest income | (2.5 | ) | (1.9 | ) | |||||||||
Foreign exchange losses | 1.6 | 0.5 | |||||||||||
Miscellaneous expenses, net | 7.4 | 3.2 | |||||||||||
$ | 34.4 | $ | 27.2 |
ManpowerGroup | |||||||
Consolidated Balance Sheets | |||||||
(In millions) | |||||||
Sep. 30 | Dec. 31 | ||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 503.1 | $ | 730.5 | |||
Accounts receivable, net | 4,581.9 | 4,243.0 | |||||
Prepaid expenses and other assets | 112.1 | 119.0 | |||||
Total current assets | 5,197.1 | 5,092.5 | |||||
Other assets: | |||||||
Goodwill | 1,284.1 | 1,257.4 | |||||
Intangible assets, net | 309.1 | 326.5 | |||||
Other assets | 776.6 | 694.0 | |||||
Total other assets | 2,369.8 | 2,277.9 | |||||
Property and equipment: | |||||||
Land, buildings, leasehold improvements and equipment | 612.2 | 585.4 | |||||
Less: accumulated depreciation and amortization | 458.7 | 438.3 | |||||
Net property and equipment | 153.5 | 147.1 | |||||
Total assets | $ | 7,720.4 | $ | 7,517.5 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,945.0 | $ | 1,659.2 | |||
Employee compensation payable | 216.3 | 211.4 | |||||
Accrued liabilities | 434.3 | 483.7 | |||||
Accrued payroll taxes and insurance | 620.6 | 613.8 | |||||
Value added taxes payable | 479.1 | 438.7 | |||||
Short-term borrowings and current maturities of long-term debt | 36.0 | 44.2 | |||||
Total current liabilities | 3,731.3 | 3,451.0 | |||||
Other liabilities: | |||||||
Long-term debt | 839.7 | 810.9 | |||||
Other long-term liabilities | 676.6 | 563.1 | |||||
Total other liabilities | 1,516.3 | 1,374.0 | |||||
Shareholders' equity: | |||||||
ManpowerGroup shareholders' equity | |||||||
Common stock | 1.2 | 1.2 | |||||
Capital in excess of par value | 3,206.5 | 3,186.7 | |||||
Retained earnings | 2,221.5 | 1,966.0 | |||||
Accumulated other comprehensive loss | (324.7 | ) | (286.0 | ) | |||
Treasury stock, at cost | (2,712.5 | ) | (2,243.2 | ) | |||
Total ManpowerGroup shareholders' equity | 2,392.0 | 2,624.7 | |||||
Noncontrolling interests | 80.8 | 67.8 | |||||
Total shareholders' equity | 2,472.8 | 2,692.5 | |||||
Total liabilities and shareholders' equity | $ | 7,720.4 | $ | 7,517.5 |
ManpowerGroup | |||||||
Consolidated Statements of Cash Flows | |||||||
(In millions) | |||||||
Nine Months Ended | |||||||
September 30 | |||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
Cash Flows from Operating Activities: | |||||||
Net earnings | $ | 316.3 | $ | 295.3 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 64.0 | 57.1 | |||||
Deferred income taxes | 36.4 | 72.6 | |||||
Provision for doubtful accounts | 14.5 | 13.2 | |||||
Share-based compensation | 21.0 | 22.9 | |||||
Excess tax benefit on exercise of share-based awards | (0.1 | ) | (4.8 | ) | |||
Changes in operating assets and liabilities, excluding the impact of acquisitions: | |||||||
Accounts receivable | (277.3 | ) | (331.7 | ) | |||
Other assets | (54.1 | ) | (10.3 | ) | |||
Other liabilities | 281.8 | 168.5 | |||||
Cash provided by operating activities | 402.5 | 282.8 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (42.6 | ) | (33.3 | ) | |||
Acquisitions of businesses, net of cash acquired | (56.9 | ) | (240.7 | ) | |||
Proceeds from sales of investments, property and equipment | 3.5 | 4.8 | |||||
Cash used in investing activities | (96.0 | ) | (269.2 | ) | |||
Cash Flows from Financing Activities: | |||||||
Net change in short-term borrowings | (3.9 | ) | (2.3 | ) | |||
Proceeds from long-term debt | — | 453.9 | |||||
Repayments of long-term debt | (6.3 | ) | (1.9 | ) | |||
Payments for debt issuance costs | — | (2.5 | ) | ||||
Payments of contingent consideration for acquisitions | (2.9 | ) | — | ||||
Proceeds from share-based awards and other equity transactions | 5.5 | 99.8 | |||||
Other share-based award transactions | (6.6 | ) | (1.4 | ) | |||
Repurchases of common stock | (462.6 | ) | (523.2 | ) | |||
Dividends paid | (60.8 | ) | (62.1 | ) | |||
Cash used in financing activities | (537.6 | ) | (39.7 | ) | |||
Effect of exchange rate changes on cash | 3.7 | (20.6 | ) | ||||
Change in cash and cash equivalents | (227.4 | ) | (46.7 | ) | |||
Cash and cash equivalents, beginning of period | 730.5 | 699.2 | |||||
Cash and cash equivalents, end of period | $ | 503.1 | $ | 652.5 |
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