form_8k.htm

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 3, 2009

MANPOWER INC.
(Exact name of registrant as specified in its charter)

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)

Registrant's telephone number, including area code:  (414) 961-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
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))


 

 

Item 2.02   Results of Operations and Financial Condition

On February 3, 2009, we issued a press release announcing our results of operations for the three months and year ended December 31, 2008. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01.                      Exhibits.

Exhibit No.
 
Description
 
99.1
 
Press Release dated February 3, 2009
 
99.2
 
Presentation materials for February 3, 2009 conference call


 

 

SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


     
MANPOWER INC.
 
         
Dated:  February 3, 2009
 
By:
/s/ Michael J. Van Handel
 
     
Michael J. Van Handel
Executive Vice President and
Chief Financial Officer
 





 

 

 
EXHIBIT INDEX

Exhibit No.
 
Description
 
99.1
 
Press Release dated February 3, 2009
 
99.2
 
Presentation materials for February 3, 2009 conference call



exhibit_99-1.htm
                                                                                                                                                    
                                                                                                    Exhibit 99.1

 


FOR IMMEDIATE RELEASE                                                                    Contact:
Mike Van Handel
Manpower Inc.
+1.414.906.6305
michael.vanhandel@manpower.com



Manpower Reports 4th Quarter and Full Year 2008 Results

MILWAUKEE, WI, USA, February 3, 2009 – Manpower Inc. (NYSE: MAN) today reported that net earnings per diluted share for the three months ended December 31, 2008 decreased to $1.01 from $1.63 in the prior year period.  Net earnings in the quarter decreased to $79.2 million from $133.1 million a year earlier.  Revenues for the fourth quarter totaled $4.6 billion, a decrease of 18 percent from the year earlier period, or a decrease of 10 percent in constant currency.
 
Included in the fourth quarter results is $62.7 million ($36.9 million after tax, or 47 cents per diluted share) of income related to a business tax refund and recoverable 2005 payroll taxes in France.  Also included is a reorganization charge of $37.2 million ($27.2 million after tax or 35 cents per diluted share), primarily related to office closures and consolidations, and severance costs in several countries.  Net earnings in the fourth quarter were negatively impacted by 10 cents per diluted share, as foreign currencies were relatively weaker compared to the prior year period.
 
“During the fourth quarter, we experienced a rapid decline in demand for our services in the majority of the geographies we operate in," said Jeffrey A. Joerres, Manpower Inc. Chairman and CEO.  "This was not unexpected, and we have positioned ourselves well for this environment.  While we have taken action to reduce our expenses, we will not impact our workforce and office infrastructure in a way that would inhibit our ability to help our clients win.
 
"Despite the anticipated continued deterioration of the labor market in the near term, we remain confident that with the combination of our financial strength and flexibility, Manpower is well-equipped to take advantage of the opportunities this environment will uniquely present to us," Joerres added.
 
Net earnings per diluted share for the year ended December 31, 2008 decreased to $2.75 from $5.73 in 2007.  Net earnings were $218.9 million compared to $484.7 million in the prior year.  Revenues for the year were $21.6 billion, an increase of 5 percent from the prior year, or an increase of 1 percent in constant currency.
 
Included in the full year 2008 results is the favorable impact of the business tax refund and recoverable 2005 payroll taxes in France totaling $0.91 per diluted share.  Also included is the goodwill and intangible asset impairment charge of $1.94 per diluted share, an increase in our legal reserve of 63 cents per diluted share and reorganization charges of 34 cents per diluted share.  Additionally, 2008 results were favorably impacted by 37 cents per diluted share due to changes in foreign currencies compared to the prior year.
 
Included in the full year 2007 results is the favorable impact of the revised French payroll tax calculation related to 2006 and 2007 of $1.05 per diluted share.  Also included is an increase in our legal reserve of 18 cents per diluted share and reorganization charges of 3 cents per diluted share.
 
In conjunction with its fourth quarter earnings release, Manpower will broadcast its conference call live over the Internet on February 3, 2009 at 7:30 a.m. CST (8:30 a.m. EST).  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 $22 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 4,400 offices in 81 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 the expected impact of expense reductions and our position in the current environment, 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 December 31
 
               
% Variance
 
               
Amount
   
Constant
 
   
2008
   
2007
   
Reported
   
Currency
 
   
(Unaudited)
 
Revenues from services (a)
  $ 4,592.9     $ 5,634.9       -18.5 %     -10.0 %
Cost of services
    3,639.2       4,584.8       -20.6 %        
    Gross profit
    953.7       1,050.1       -9.2 %     -0.2 %
Selling and administrative expenses
    804.8       826.9       -2.7 %     6.4 %
    Operating profit
    148.9       223.2       -33.3 %     -24.4 %
Interest and other expenses
    12.3       7.8       57.0 %        
    Earnings before income taxes
    136.6       215.4       -36.6 %     -29.8 %
Provision for income taxes
    57.4       82.3       -30.3 %        
    Net earnings
  $ 79.2     $ 133.1       -40.5 %     -34.1 %
Net earnings per share - basic
  $ 1.02     $ 1.65       -38.2 %        
Net earnings per share - diluted
  $ 1.01     $ 1.63       -38.0 %     -31.3 %
Weighted average shares - basic
    77.8       80.5       -3.4 %        
Weighted average shares - diluted
    78.0       81.7       -4.5 %        
                                 
(a) Revenues from services include fees received from our franchise offices of $7.3 million and $8.9 million for the three months ended December 31, 2008 and 2007, respectively.  These fees are primarily based on revenues generated by the franchise offices, which were $236.5 million and $296.9 million for the three months ended December 31, 2008 and 2007, respectively.
 

 

 
Manpower Inc.
 
Operating Unit Results
 
(In millions)
 
                         
   
Three Months Ended December 31
 
               
% Variance
 
               
Amount
   
Constant
 
   
2008
   
2007
   
Reported
   
Currency
 
   
(Unaudited)
 
Revenues from Services:
                       
    United States (a)
  $ 462.5     $ 487.8       -5.2 %     -5.2 %
    France
    1,351.4       1,876.1       -28.0 %     -21.0 %
    Other EMEA
    1,581.6       1,951.7       -19.0 %     -4.3 %
    Italy
    301.2       405.0       -25.6 %     -18.3 %
    Jefferson Wells
    63.6       81.4       -21.8 %     -21.8 %
    Right Management
    123.0       111.5       10.3 %     19.7 %
    Other Operations
    709.6       721.4       -1.6 %     1.2 %
    $ 4,592.9     $ 5,634.9       -18.5 %     -10.0 %
Operating Unit Profit:
                               
    United States
  $ (1.9 )   $ 18.4       N/A       N/A  
    France
    109.1       82.0       33.0 %     43.4 %
    Other EMEA
    40.4       89.9       -55.1 %     -45.6 %
    Italy
    24.3       33.6       -27.5 %     -20.5 %
    Jefferson Wells
    (13.8 )     (5.6 )     N/A       N/A  
    Right Management
    17.0       11.8       44.6 %     50.3 %
    Other Operations
    2.4       26.9       -91.0 %     -91.8 %
      177.5       257.0                  
Corporate expenses
    25.0       30.5                  
Amortization of intangible assets
    3.6       3.3                  
    Operating profit
    148.9       223.2       -33.3 %     -24.4 %
Interest and other expenses (b)
    12.3       7.8                  
    Earnings before income taxes
  $ 136.6     $ 215.4                  
                                 
(a) In the United States, revenues from services include fees received from our franchise offices of $3.9 million and $5.9 million for the three months ended December 31, 2008 and 2007, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $143.5 million and $236.8 million for the three months ended December 31, 2008 and 2007, respectively.
 
                                 
(b) The components of interest and other expenses were:
                         
   
2008
   
2007
                 
        Interest expense
  $ 15.0     $ 14.1                  
        Interest income
    (5.6 )     (7.3 )                
        Foreign exchange gains
    (0.8 )     (0.7 )                
        Miscellaneous expenses, net
    3.7       1.7                  
    $ 12.3     $ 7.8                  

 

 
Manpower Inc.
 
Results of Operations
 
(In millions, except per share data)
 
                         
   
Year Ended December 31
 
               
% Variance
 
               
Amount
   
Constant
 
   
2008
   
2007
   
Reported
   
Currency
 
   
(Unaudited)
 
Revenues from services (a)
  $ 21,552.8     $ 20,500.3       5.1 %     0.5 %
Cost of services
    17,450.2       16,651.7       4.8 %        
    Gross profit
    4,102.6       3,848.6       6.6 %     2.3 %
Selling and administrative expenses, excluding impairment charge
    3,430.3       3,023.2       13.5 %     9.3 %
Goodwill and intangible asset impairment (b)
    163.1       -       N/A       N/A  
    Selling and administrative expenses
    3,593.4       3,023.2       18.9 %     14.7 %
    Operating profit
    509.2       825.4       -38.3 %     -42.9 %
Interest and other expenses
    50.9       34.2       49.0 %        
    Earnings before income taxes
    458.3       791.2       -42.1 %     -48.0 %
Provision for income taxes
    239.4       306.5       -21.9 %        
    Net earnings
  $ 218.9     $ 484.7       -54.8 %     -59.4 %
Net earnings per share - basic
  $ 2.78     $ 5.83       -52.3 %        
Net earnings per share - diluted
  $ 2.75     $ 5.73       -52.0 %     -56.7 %
Weighted average shares - basic
    78.7       83.1       -5.2 %        
Weighted average shares - diluted
    79.7       84.6       -5.8 %        
                                 
(a) Revenues from services include fees received from our franchise offices of $30.9 million and $35.7 million for the year ended December 31, 2008 and 2007, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,148.1 million and $1,408.5 million for the year ended December 31, 2008 and 2007, respectively.
 
                                 
(b) The goodwill and intangible asset impairment relates to our investment in Right Management.  The impact on Net earnings is $154.6 million, or $1.94 per diluted share.
 

 

 
Manpower Inc.
 
Operating Unit Results
 
(In millions)
 
                         
   
Year Ended December 31
 
               
% Variance
 
               
Amount
   
Constant
 
   
2008
   
2007
   
Reported
   
Currency
 
   
(Unaudited)
 
Revenues from Services:
                       
    United States (a)
  $ 1,945.4     $ 1,962.2       -0.9 %     -0.9 %
    France
    6,935.6       7,025.3       -1.3 %     -8.7 %
    Other EMEA
    7,437.7       6,750.4       10.2 %     8.1 %
    Italy
    1,519.5       1,398.1       8.7 %     0.5 %
    Jefferson Wells
    291.0       332.0       -12.4 %     -12.4 %
    Right Management
    449.7       409.9       9.7 %     9.3 %
    Other Operations
    2,973.9       2,622.4       13.4 %     6.9 %
    $ 21,552.8     $ 20,500.3       5.1 %     0.5 %
Operating Unit Profit:
                               
    United States
  $ 32.2     $ 80.1       -59.8 %     -59.8 %
    France
    299.0       390.3       -23.4 %     -26.9 %
    Other EMEA
    249.5       256.7       -2.8 %     -6.4 %
    Italy
    120.3       103.7       16.0 %     7.3 %
    Jefferson Wells
    (19.6 )     (5.2 )     N/A       N/A  
    Right Management
    44.6       34.6       29.0 %     30.2 %
    Other Operations
    54.5       73.5       -25.9 %     -34.4 %
      780.5       933.7                  
Corporate expenses
    94.8       95.2                  
Goodwill and intangible asset impairment
    163.1       -                  
Amortization of intangible assets
    13.4       13.1                  
    Operating profit
    509.2       825.4       -38.3 %     -42.9 %
Interest and other expenses (b)
    50.9       34.2                  
    Earnings before income taxes
  $ 458.3     $ 791.2                  
                                 
(a) In the United States, revenues from services include fees received from our franchise offices of $17.7 million and $24.2 million for the year ended December 31, 2008 and 2007, respectively.  These fees are primarily based on revenues generated by the franchise offices, which were $746.2 million and $1,055.1 million for the year ended December 31, 2008 and 2007, respectively.
 
                                 
(b) The components of interest and other expenses were:
                         
   
2008
   
2007
                 
        Interest expense
  $ 63.9     $ 53.4                  
        Interest income
    (22.1 )     (24.4 )                
        Foreign exchange gains
    (2.9 )     (0.6 )                
        Miscellaneous expenses, net
    12.0       5.8                  
    $ 50.9     $ 34.2                  

 

 
 
Consolidated Balance Sheets
 
(In millions)
 
             
   
Dec. 31
   
Dec. 31
 
   
2008
   
2007
 
   
(Unaudited)
 
ASSETS
           
Current assets:
           
    Cash and cash equivalents
  $ 874.0     $ 537.5  
    Accounts receivable, net
    3,629.7       4,478.8  
    Prepaid expenses and other assets
    119.9       122.2  
    Future income tax benefits
    66.5       76.3  
        Total current assets
    4,690.1       5,214.8  
Other assets:
               
    Goodwill and other intangible assets, net
    1,388.1       1,410.7  
    Other assets
    326.6       377.7  
        Total other assets
    1,714.7       1,788.4  
Property and equipment:
               
    Land, buildings, leasehold improvements and equipment
    744.0       760.8  
    Less:  accumulated depreciation and amortization
    530.6       539.6  
        Net property and equipment
    213.4       221.2  
            Total assets
  $ 6,618.2     $ 7,224.4  
LIABILITIES AND SHAREHOLDERS' EQUITY
               
Current liabilities:
               
    Accounts payable
  $ 903.2     $ 1,014.4  
    Employee compensation payable
    213.2       213.6  
    Accrued liabilities
    577.9       679.4  
    Accrued payroll taxes and insurance
    617.5       724.7  
    Value added taxes payable
    479.2       583.7  
    Short-term borrowings and current maturities of long-term debt
    115.6       39.7  
        Total current liabilities
    2,906.6       3,255.5  
Other liabilities:
               
    Long-term debt
    837.3       874.8  
    Other long-term liabilities
    390.5       424.8  
        Total other liabilities
    1,227.8       1,299.6  
Shareholders' equity:
               
    Common stock
    1.0       1.0  
    Capital in excess of par value
    2,514.8       2,481.8  
    Retained earnings
    1,201.2       1,040.3  
    Accumulated other comprehensive (loss) income
    (8.9 )     257.6  
    Treasury stock, at cost
    (1,224.3 )     (1,111.4 )
        Total shareholders' equity
    2,483.8       2,669.3  
            Total liabilities and shareholders' equity
  $ 6,618.2     $ 7,224.4  

 

 
 
Consolidated Statements of Cash Flows
 
(In millions)
 
             
   
Year Ended
 
   
Dec. 31
 
   
2008
   
2007
 
   
(Unaudited)
 
Cash Flows from Operating Activities:
           
    Net earnings
  $ 218.9     $ 484.7  
    Adjustments to reconcile net earnings to net cash provided by operating activities:
               
        Depreciation and amortization
    107.1       99.0  
        Non-cash goodwill and intangible asset impairment
    163.1       -  
        Deferred income taxes
    (50.8 )     25.4  
        Provision for doubtful accounts
    23.4       21.8  
        Share-based compensation
    21.1       26.0  
        Excess tax benefit on exercise of stock options
    (0.5 )     (4.6 )
    Changes in operating assets and liabilities, excluding the impact of acquisitions:
               
        Accounts receivable
    575.0       (316.0 )
        Other assets
    2.9       (3.5 )
        Other liabilities
    (268.2 )     99.4  
            Cash provided by operating activities
    792.0       432.2  
Cash Flows from Investing Activities:
               
    Capital expenditures
    (93.1 )     (91.6 )
    Acquisitions of businesses, net of cash acquired
    (242.0 )     (122.8 )
    Proceeds from the sale of property and equipment
    5.9       12.9  
            Cash used by investing activities
    (329.2 )     (201.5 )
Cash Flows from Financing Activities:
               
    Net borrowings of short-term facilities and long-term debt
    79.0       4.9  
    Proceeds from stock option and purchase plans
    12.2       35.0  
    Excess tax benefit on exercise of stock options
    0.5       4.6  
    Repurchases of common stock
    (125.4 )     (419.2 )
    Dividends paid
    (58.1 )     (57.1 )
            Cash used by financing activities
    (91.8 )     (431.8 )
Effect of exchange rate changes on cash
    (34.5 )     50.7  
Change in cash and cash equivalents
    336.5       (150.4 )
Cash and cash equivalents, beginning of period
    537.5       687.9  
Cash and cash equivalents, end of period
  $ 874.0     $ 537.5  



exhibit_99-2.htm
1
MANPOWER INC.
2008 4th QUARTER RESULTS
FEBRUARY 3, 2009
Exhibit 99.2
 
 

 
2
Forward Looking Statement
This presentation includes forward-looking statements which are
subject to risks and uncertainties. Actual results might differ
materially from those projected in the forward-looking statements.
Forward-looking statements can be identified by words such as
“expect,” “plan,” “may,” “will,” and similar expressions. Additional
information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is
contained in the Company’s Annual Report on Form 10-K dated
December 31, 2007, 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.
 
 

 
3
Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances
represents the impact of currency on our financial results. Constant Currency is further explained on our Web site.
(1) Excludes non-recurring items for 2008 and 2007 as set forth on page 4.
80 bps
31% CC
Operating Profit $149M
OP Margin 3.2%
Revenue $4.6B
Gross Margin 20.8% 
EPS $1.01
18%
10% CC
213 bps
 38%
33%
24% CC
Q4 Highlights
As
Reported
40% CC
18%
10% CC
99 bps
120 bps
 46%
44%
35% CC
Excluding
Non-recurring
Items
(1)
Consolidated Financial Highlights
 
 

 
4
($ in millions, except per share amounts)
Q4 Non-recurring Items
 
 

 
5
($ in millions, except per share amounts)
Full Year Non-recurring Items
 
 

 
6
Impact of Non-recurring
Items = + 1.14%
Consolidated Gross Profit Margin Change
 
 

 
7
Excluding Non
-recurring
Items
Q4 Financial Highlights
OUP Margin
- 0.4%
Revenue
$463M
OUP
$(2M)
5%
370 bps
N/A
As
Reported
5%
420 bps
N/A
(1)
Operating Unit Profit (OUP) is the measure that we use to evaluate segment
performance. OUP is equal to segment revenues less direct costs and branch and
national headquarters operating costs.
(1) The results above include the impact of acquisitions. On an organic basis, revenue decreased 15%.
(2) Excludes the impact of the reorganization charges of $2.5M in 2008.
(2)
United States Segment
(10% of Revenue)
 
 

 
8
Q4 Financial Highlights
OUP Margin
8.1%
Revenue
$1.4B
OUP
$109M
28%
21% CC
30 bps
33%
28% CC
(1) Excludes the impact of the business tax refund of $48.2M, the 2005 payroll tax adjustment of $14.5M
 and reorganization charges of $2.7M in 2008 (net favorable impact $60.0M) and the payroll tax change
 of $23.3M and the legal reserve of $15.0M in 2007(net favorable impact $8.3M).
As
Reported
28%
21% CC
370 bps
33%
43% CC
(1)
Excluding Non
-recurring
Items
France Segment
(29% of Revenue)
 
 

 
9
Excluding Non
-recurring
Items
Q4 Financial Highlights
OUP Margin
2.6%
Revenue
$1.6B
OUP
$40M
19%
4% CC
70 bps
32%
20% CC
As
Reported
19%
4% CC
200 bps
55%
46% CC
(2)
(1)
(1) The results above include the results of Vitae, which was acquired in April 2008. On an organic basis,
 revenue decreased 21% in USD (6% in CC).
(2) Excludes the impact of the reorganization charges of $20.6M in 2008.
(1)
Other EMEA Segment
(34% of Revenue)
 
 

 
10
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
18%
18%
13%
11%
 11%

5%
 18%
(1)
(1) The Netherlands results include the results of Vitae, which was acquired in April 2008. On an organic
 basis, revenue decreased 14% in USD (6% in CC).
6%
Other EMEA - Q4 Revenue Growth YoY
 
 

 
11
Q4 Financial Highlights
OUP Margin
8.1%
Revenue
$301M
OUP
$24M
26%
18% CC
0 bps
26%
18% CC
(1) Excludes the impact of the reorganization charges of $0.6M in 2008.
As
Reported
26%
18% CC
20 bps
28%
21% CC
(1)
Excluding Non
-recurring
Items
Italy Segment
(7% of Revenue)
 
 

 
12
Excluding Non
-recurring
Items
Q4 Financial Highlights
OUP Margin
-21.6%
Revenue
$64M
OUP
$(14M)
22%
760 bps
N/A
As
Reported
22%
1,480 bps
N/A
(1)
(1) Excludes the impact of the reorganization charges of $7.8M in 2008 and $4.0M in 2007.
Jefferson Wells Segment
(1% of Revenue)
 
 

 
13
Q4 Financial Highlights
OUP Margin
13.8%
Revenue
$123M
OUP
$17M
10%
20% CC
450 bps
58%
68% CC
(1) Excludes the impact of the reorganization charges of $1.5M in 2008.
As
Reported
10%
20% CC
330 bps
45%
50% CC
(1)
Excluding Non
-recurring
Items
Right Management Segment
(3% of Revenue)
 
 

 
14
(1) Excludes the impact of the reorganization charges of $1.3M in 2008.
Excluding Non
-recurring
Items
Q4 Financial Highlights
OUP Margin
0.3%
Revenue
$710M
OUP
$2M
2%
1% CC
320 bps
86%
86% CC
As
Reported
2%
1% CC
340 bps
91%
92% CC
(1)
Other Operations Segment
(16% of Revenue)
 
 

 
15
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
40%
12%
10%
38%
Other Operations - Q4 Revenue Growth YoY
 
 

 
16
Financial Highlights
 
 

 
17
Other
(86)
Change in Cash
337
(150)
12
* 2,231,610 shares in 2008 and 6,147,400 shares in 2007. $11.5M of
 cash paid in 2008 was for shares repurchased in 2007.
2008
2007
Cash from Operations
792
432
Capital Expenditures
(93)
(92)
 Free Cash Flow
699
340
Share Repurchases *
(125)
(419)
Change in Debt
(242)
5
($ in millions)
Proceeds from Equity Plans
12
35
Acquisitions of Businesses,
 net of cash acquired
(123)
79
Cash Flow Summary - Full Year
 
 

 
18
Total Debt
($ in millions)
Total Debt to
Total Capitalization
Total Debt
Net Debt
2008
2008
Balance Sheet Highlights
 
 

 
19
(a)
(b)
(a)
(b)
$625M multi-currency Revolving Credit Agreement provided by 17 banks. No lender represents more than 10% of the total
amount. As of December 31, 2008, there was a €100M borrowing under the Revolving Credit Agreement which has been
swapped to a fixed rate of 5.71% until July 2010. New borrowings under the agreement would be made at the interbank rate for
the relevant currency and tenor plus a credit spread based upon our public debt rating. At December 31, 2008, new 30-day
USD borrowings would cost 0.84% (30-day LIBOR plus 40 bps).
The interest rate is based on the issuance cost of commercial paper from Citigroup conduits which are rated A1+/P1 by the
rating agencies. The commercial paper is sold into public, private or bank financing markets. Our cost of funds is comprised of
the issuance cost for this commercial paper plus a commission and will vary based on market and interest rate conditions.
Represents borrowings under uncommitted lines of credit & overdraft facilities, which total $376.5M, and other long-term debt of
$1.6M. Total subsidiary borrowings are limited to $300M due to restrictions in our Revolving Credit Agreement, with the
exception of Q3 when subsidiary borrowings are limited to $600M.
(c)
(c)
Interest
Rate
Maturity
Date
Total
Outstanding
Remaining
Available
Euro Notes:
- Euro 200M
4.86%
June 2013
279
-
- Euro 300M
4.58%
June 2012
418
-
Revolving Credit Agreement
5.71%
Nov 2012
140
482
A/R Securitization
2.35%
July 2009
64
36
Uncommitted lines and Other
Various
Various
52
249
Total Debt
953
767
Credit Facilities as of December 31, 2008
($ in millions)
 
 

 
20
Full-Year Results
 
 

 
Questions?
Answers
February 3, 2009
Manpower Inc.
2008 4
th Quarter Results