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): July 21, 2014
MANPOWERGROUP 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
The information in this Item 2.02, including exhibit 99.1 attached hereto, is furnished solely pursuant to Item 2.02 of Form 8-K. Consequently, such information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Further, the information in this Item 2.02, including exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.
On July 21, 2014, we issued a press release announcing our results of operations for the three month and six month periods ended June 30, 2014. 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 July 21, 2014
|
|
99.2
|
Presentation materials for July 21, 2014 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.
|
MANPOWERGROUP INC.
|
||||
|
Dated: July 21, 2014
|
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 July 21, 2014
|
|
99.2
|
Presentation materials for July 21, 2014 conference call
|
Exhibit 99.1
FOR IMMEDIATE RELEASE Contact:
Mike Van Handel
+1.414.906.6305
michael.vanhandel@manpowergroup.com
ManpowerGroup Reports 2nd Quarter and First Half 2014 Results
MILWAUKEE, July 21, 2014 -- ManpowerGroup (NYSE: MAN) today reported that net earnings per diluted share for the three months ended June 30, 2014 were $1.35 compared to 87 cents in the prior year period. Net earnings in the second quarter were $109.8 million compared to $68.2 million a year earlier. Revenues for the second quarter were $5.3 billion, an increase of 6 percent from the year earlier period in U.S. dollars and 4 percent in constant currency.
Included in the prior year second quarter results is a restructuring charge, primarily related to office consolidations and severance costs, of $20.0 million ($14.4 million after tax or 18 cents per diluted share). There were no restructuring charges in the current year quarter. Net earnings in the second quarter were favorably impacted by 3 cents per diluted share, as foreign currencies were relatively stronger compared to the prior year period.
ManpowerGroup CEO Jonas Prising, said, “In the second quarter, we saw our revenue growth improve in a number of major operations including the U.S., U.K. and Italy. This combined with our continued focus on efficiency and productivity, has resulted in good operational leverage and healthy earnings growth.”
“We are anticipating the third quarter of 2014 diluted earnings per share to be in the range of $1.46 to $1.54, which includes an estimated favorable currency impact of 2 cents,” Prising stated.
Earnings per diluted share for the six months ended June 30, 2014 were $2.21 compared to $1.17 per diluted share in 2013. Net earnings for the period were $179.9 million compared to $92.1 million in the prior year. Revenues for the six-month period were $10.2 billion, an increase of 4 percent from the prior year or an increase of 3 percent in constant currency. Earnings per diluted share for the prior year six month period include restructuring charges of 51 cents per diluted share. Foreign currency exchange rates had a favorable impact of 2 cents for the six-month period.
In conjunction with its second quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on July 21, 2014 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://www.manpowergroup.com in the section titled “Investor Relations.”
Supplemental financial information referenced in the conference call can be found at http://www.manpowergroup.com.
About ManpowerGroup™
ManpowerGroup™ (NYSE: MAN) has been the world’s workforce expert, creating innovative workforce solutions, for more than 65 years. As workforce experts, we connect more than 600,000 men and women to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands — Manpower®, Experis™, Right Management ® and ManpowerGroup™ Solutions— we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2014, ManpowerGroup was named one of the World’s Most Ethical Companies for the fourth consecutive year and one of Fortune’s Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com.
Forward-Looking Statements
This news release contains statements, including earnings projections, that are forward-looking in nature. These statements are based on management’s current expectations or beliefs, and are subject to known and unknown 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, 2013, which information is incorporated herein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.
###
|
ManpowerGroup
|
||||||||||||||||
|
Results of Operations
|
||||||||||||||||
|
(In millions, except per share data)
|
||||||||||||||||
|
Three Months Ended June 30
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2014
|
2013
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from services (a)
|
$ | 5,321.7 | $ | 5,040.7 | 5.6 | % | 3.7 | % | ||||||||
|
Cost of services
|
4,424.4 | 4,204.3 | 5.2 | % | 3.3 | % | ||||||||||
|
Gross profit
|
897.3 | 836.4 | 7.3 | % | 5.6 | % | ||||||||||
|
Selling and administrative expenses
|
709.9 | 708.3 | 0.2 | % | -1.2 | % | ||||||||||
|
Operating profit
|
187.4 | 128.1 | 46.3 | % | 43.2 | % | ||||||||||
|
Interest and other expenses
|
7.9 | 10.3 | -24.0 | % | ||||||||||||
|
Earnings before income taxes
|
179.5 | 117.8 | 52.5 | % | 48.7 | % | ||||||||||
|
Provision for income taxes
|
69.7 | 49.6 | 40.8 | % | ||||||||||||
|
Net earnings
|
$ | 109.8 | $ | 68.2 | 61.0 | % | 57.4 | % | ||||||||
|
Net earnings per share - basic
|
$ | 1.37 | $ | 0.88 | 55.7 | % | ||||||||||
|
Net earnings per share - diluted
|
$ | 1.35 | $ | 0.87 | 55.2 | % | 51.7 | % | ||||||||
|
Weighted average shares - basic
|
79.9 | 77.4 | 3.2 | % | ||||||||||||
|
Weighted average shares - diluted
|
81.4 | 78.6 | 3.5 | % | ||||||||||||
|
(a) Revenues from services include fees received from our franchise offices of $6.4 million and $6.1 million for the three months ended June 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $286.6 million and $272.3 million for the three months ended June 30, 2014 and 2013, respectively.
|
||||||||||||||||
|
ManpowerGroup
|
||||||||||||||||
|
Operating Unit Results
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||
|
Three Months Ended June 30
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2014
|
2013
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from Services:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States (a)
|
$ | 775.9 | $ | 748.5 | 3.7 | % | 3.7 | % | ||||||||
|
Other Americas
|
375.2 | 387.2 | -3.1 | % | 7.7 | % | ||||||||||
| 1,151.1 | 1,135.7 | 1.4 | % | 5.0 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
1,412.1 | 1,320.6 | 6.9 | % | 1.9 | % | ||||||||||
|
Italy
|
313.9 | 278.4 | 12.8 | % | 7.5 | % | ||||||||||
|
Other Southern Europe
|
243.0 | 203.0 | 19.7 | % | 14.9 | % | ||||||||||
| 1,969.0 | 1,802.0 | 9.3 | % | 4.2 | % | |||||||||||
|
Northern Europe
|
1,527.8 | 1,398.8 | 9.2 | % | 4.6 | % | ||||||||||
|
APME
|
594.0 | 623.3 | -4.7 | % | -1.8 | % | ||||||||||
|
Right Management
|
79.8 | 80.9 | -1.4 | % | -2.7 | % | ||||||||||
| $ | 5,321.7 | $ | 5,040.7 | 5.6 | % | 3.7 | % | |||||||||
|
Operating Unit Profit:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States
|
$ | 29.7 | $ | 30.6 | -2.9 | % | -2.9 | % | ||||||||
|
Other Americas
|
14.0 | 11.9 | 18.3 | % | 29.2 | % | ||||||||||
| 43.7 | 42.5 | 3.0 | % | 6.0 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
71.9 | 40.9 | 75.9 | % | 67.9 | % | ||||||||||
|
Italy
|
18.3 | 14.7 | 24.9 | % | 19.1 | % | ||||||||||
|
Other Southern Europe
|
5.7 | 1.2 | 379.2 | % | 361.7 | % | ||||||||||
| 95.9 | 56.8 | 69.2 | % | 61.5 | % | |||||||||||
|
Northern Europe
|
46.2 | 33.2 | 39.3 | % | 34.4 | % | ||||||||||
|
APME
|
21.0 | 20.2 | 2.9 | % | 5.9 | % | ||||||||||
|
Right Management
|
12.7 | 7.4 | 72.3 | % | 72.4 | % | ||||||||||
| 219.5 | 160.1 | |||||||||||||||
|
Corporate expenses
|
(23.7 | ) | (23.6 | ) | ||||||||||||
|
Intangible asset amortization expense
|
(8.4 | ) | (8.4 | ) | ||||||||||||
|
Operating profit
|
187.4 | 128.1 | 46.3 | % | 43.2 | % | ||||||||||
|
Interest and other expenses (b)
|
(7.9 | ) | (10.3 | ) | ||||||||||||
|
Earnings before income taxes
|
$ | 179.5 | $ | 117.8 | ||||||||||||
|
(a) In the United States, revenues from services include fees received from our franchise offices of $3.9 million and $3.8 million for the three months ended June 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $190.3 million and $175.3 million for the three months ended June 30, 2014 and 2013, respectively.
|
||||||||||||||||
|
(b) The components of interest and other expenses were:
|
||||||||||||||||
| 2014 | 2013 | |||||||||||||||
|
Interest expense
|
$ | 9.3 | $ | 10.3 | ||||||||||||
|
Interest income
|
(1.1 | ) | (0.9 | ) | ||||||||||||
|
Foreign exchange (gain) loss
|
(0.9 | ) | 1.4 | |||||||||||||
|
Miscellaneous expense (income), net
|
0.6 | (0.5 | ) | |||||||||||||
| $ | 7.9 | $ | 10.3 | |||||||||||||
|
ManpowerGroup
|
||||||||||||||||
|
Results of Operations
|
||||||||||||||||
|
(In millions, except per share data)
|
||||||||||||||||
|
Six Months Ended June 30
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2014
|
2013
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from services (a)
|
$ | 10,225.7 | $ | 9,809.6 | 4.2 | % | 3.3 | % | ||||||||
|
Cost of services
|
8,511.9 | 8,183.1 | 4.0 | % | 3.1 | % | ||||||||||
|
Gross profit
|
1,713.8 | 1,626.5 | 5.4 | % | 4.6 | % | ||||||||||
|
Selling and administrative expenses
|
1,399.5 | 1,444.0 | -3.1 | % | -3.7 | % | ||||||||||
|
Operating profit
|
314.3 | 182.5 | 72.3 | % | 70.5 | % | ||||||||||
|
Interest and other expenses
|
17.1 | 21.8 | -21.7 | % | ||||||||||||
|
Earnings before income taxes
|
297.2 | 160.7 | 85.0 | % | 82.6 | % | ||||||||||
|
Provision for income taxes
|
117.3 | 68.6 | 71.2 | % | ||||||||||||
|
Net earnings
|
$ | 179.9 | $ | 92.1 | 95.3 | % | 93.5 | % | ||||||||
|
Net earnings per share - basic
|
$ | 2.25 | $ | 1.19 | 89.1 | % | ||||||||||
|
Net earnings per share - diluted
|
$ | 2.21 | $ | 1.17 | 88.9 | % | 87.2 | % | ||||||||
|
Weighted average shares - basic
|
79.9 | 77.3 | 3.4 | % | ||||||||||||
|
Weighted average shares - diluted
|
81.4 | 78.6 | 3.6 | % | ||||||||||||
|
(a) Revenues from services include fees received from our franchise offices of $11.9 million and $11.4 million for the six months ended June 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $543.2 million and $507.0 million for the six months ended June 30, 2014 and 2013, respectively.
|
||||||||||||||||
|
ManpowerGroup
|
||||||||||||||||
|
Operating Unit Results
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||
|
Six Months Ended June 30
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2014
|
2013
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from Services:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States (a)
|
$ | 1,496.4 | $ | 1,454.6 | 2.9 | % | 2.9 | % | ||||||||
|
Other Americas
|
725.8 | 774.1 | -6.3 | % | 5.7 | % | ||||||||||
| 2,222.2 | 2,228.7 | -0.3 | % | 3.8 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
2,629.4 | 2,465.8 | 6.6 | % | 2.1 | % | ||||||||||
|
Italy
|
588.6 | 536.3 | 9.8 | % | 5.1 | % | ||||||||||
|
Other Southern Europe
|
473.0 | 396.4 | 19.3 | % | 14.8 | % | ||||||||||
| 3,691.0 | 3,398.5 | 8.6 | % | 4.0 | % | |||||||||||
|
Northern Europe
|
2,991.7 | 2,769.1 | 8.0 | % | 4.6 | % | ||||||||||
|
APME
|
1,167.7 | 1,255.8 | -7.0 | % | -1.5 | % | ||||||||||
|
Right Management
|
153.1 | 157.5 | -2.8 | % | -3.4 | % | ||||||||||
| $ | 10,225.7 | $ | 9,809.6 | 4.2 | % | 3.3 | % | |||||||||
|
Operating Unit Profit:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States
|
$ | 43.1 | $ | 38.0 | 13.5 | % | 13.5 | % | ||||||||
|
Other Americas
|
26.6 | 20.6 | 29.2 | % | 44.2 | % | ||||||||||
| 69.7 | 58.6 | 19.0 | % | 24.3 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
123.1 | 70.6 | 74.3 | % | 66.7 | % | ||||||||||
|
Italy
|
30.9 | 26.4 | 17.3 | % | 12.1 | % | ||||||||||
|
Other Southern Europe
|
10.3 | 3.5 | 194.0 | % | 183.1 | % | ||||||||||
| 164.3 | 100.5 | 63.5 | % | 56.4 | % | |||||||||||
|
Northern Europe
|
84.6 | 43.8 | 93.2 | % | 88.4 | % | ||||||||||
|
APME
|
41.2 | 35.0 | 17.7 | % | 25.4 | % | ||||||||||
|
Right Management
|
21.0 | 9.4 | 122.6 | % | 122.3 | % | ||||||||||
| 380.8 | 247.3 | |||||||||||||||
|
Corporate expenses
|
(49.9 | ) | (48.0 | ) | ||||||||||||
|
Intangible asset amortization expense
|
(16.6 | ) | (16.8 | ) | ||||||||||||
|
Operating profit
|
314.3 | 182.5 | 72.3 | % | 70.5 | % | ||||||||||
|
Interest and other expenses (b)
|
(17.1 | ) | (21.8 | ) | ||||||||||||
|
Earnings before income taxes
|
$ | 297.2 | $ | 160.7 | ||||||||||||
|
(a) In the United States, revenues from services include fees received from our franchise offices of $7.3 million and $7.0 million for the six months ended June 30, 2014 and 2013, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $359.4 million and $330.4 million for the six months ended June 30, 2014 and 2013, respectively.
|
||||||||||||||||
|
(b) The components of interest and other expenses were:
|
||||||||||||||||
| 2014 | 2013 | |||||||||||||||
|
Interest expense
|
$ | 17.9 | $ | 21.0 | ||||||||||||
|
Interest income
|
(2.0 | ) | (1.8 | ) | ||||||||||||
|
Foreign exchange (gain) loss
|
(2.1 | ) | 1.8 | |||||||||||||
|
Miscellaneous expenses, net
|
3.3 | 0.8 | ||||||||||||||
| $ | 17.1 | $ | 21.8 | |||||||||||||
|
ManpowerGroup
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
(In millions)
|
||||||||
|
Jun. 30
|
Dec. 31
|
|||||||
|
2014
|
2013
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 638.5 | $ | 737.6 | ||||
|
Accounts receivable, net
|
4,501.0 | 4,277.9 | ||||||
|
Prepaid expenses and other assets
|
132.6 | 161.3 | ||||||
|
Future income tax benefits
|
53.2 | 66.2 | ||||||
|
Total current assets
|
5,325.3 | 5,243.0 | ||||||
|
Other assets:
|
||||||||
|
Goodwill and other intangible assets, net
|
1,434.1 | 1,400.0 | ||||||
|
Other assets
|
613.6 | 479.3 | ||||||
|
Total other assets
|
2,047.7 | 1,879.3 | ||||||
|
Property and equipment:
|
||||||||
|
Land, buildings, leasehold improvements and equipment
|
716.8 | 706.2 | ||||||
|
Less: accumulated depreciation and amortization
|
556.0 | 540.2 | ||||||
|
Net property and equipment
|
160.8 | 166.0 | ||||||
|
Total assets
|
$ | 7,533.8 | $ | 7,288.3 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 1,680.2 | $ | 1,523.9 | ||||
|
Employee compensation payable
|
193.6 | 230.4 | ||||||
|
Accrued liabilities
|
505.5 | 536.1 | ||||||
|
Accrued payroll taxes and insurance
|
630.6 | 680.7 | ||||||
|
Value added taxes payable
|
504.2 | 502.5 | ||||||
|
Short-term borrowings and current maturities of long-term debt
|
47.5 | 36.0 | ||||||
|
Total current liabilities
|
3,561.6 | 3,509.6 | ||||||
|
Other liabilities:
|
||||||||
|
Long-term debt
|
481.4 | 481.9 | ||||||
|
Other long-term liabilities
|
408.4 | 382.6 | ||||||
|
Total other liabilities
|
889.8 | 864.5 | ||||||
|
Shareholders' equity:
|
||||||||
|
Common stock
|
1.1 | 1.1 | ||||||
|
Capital in excess of par value
|
3,059.0 | 3,014.0 | ||||||
|
Retained earnings
|
1,458.4 | 1,317.5 | ||||||
|
Accumulated other comprehensive income
|
90.2 | 82.2 | ||||||
|
Treasury stock, at cost
|
(1,526.3 | ) | (1,500.6 | ) | ||||
|
Total shareholders' equity
|
3,082.4 | 2,914.2 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 7,533.8 | $ | 7,288.3 | ||||
|
ManpowerGroup
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
(In millions)
|
||||||||
|
Six Months Ended
|
||||||||
|
June 30
|
||||||||
|
2014
|
2013
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net earnings
|
$ | 179.9 | $ | 92.1 | ||||
|
Adjustments to reconcile net earnings to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
43.2 | 48.0 | ||||||
|
Deferred income taxes
|
5.0 | 3.3 | ||||||
|
Provision for doubtful accounts
|
10.3 | 13.5 | ||||||
|
Share-based compensation
|
23.9 | 14.8 | ||||||
|
Excess tax benefit on exercise of share-based awards
|
(2.9 | ) | (0.5 | ) | ||||
|
Changes in operating assets and liabilities, excluding the impact of acquisitions:
|
||||||||
|
Accounts receivable
|
(223.6 | ) | (119.0 | ) | ||||
|
Other assets
|
(99.1 | ) | (61.1 | ) | ||||
|
Other liabilities
|
47.3 | (62.7 | ) | |||||
|
Cash used in operating activities
|
(16.0 | ) | (71.6 | ) | ||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(20.6 | ) | (25.1 | ) | ||||
|
Acquisitions of businesses, net of cash acquired
|
(23.7 | ) | (16.9 | ) | ||||
|
Proceeds from sales of property and equipment
|
0.3 | 1.7 | ||||||
|
Cash used in investing activities
|
(44.0 | ) | (40.3 | ) | ||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Net change in short-term borrowings
|
15.9 | 37.6 | ||||||
|
Proceeds from long-term debt
|
- | 0.1 | ||||||
|
Repayments of long-term debt
|
(1.2 | ) | (267.5 | ) | ||||
|
Proceeds from share-based awards
|
18.9 | 15.0 | ||||||
|
Other share-based award transactions, net
|
(6.1 | ) | 3.0 | |||||
|
Repurchases of common stock
|
(16.7 | ) | - | |||||
|
Dividends paid
|
(39.0 | ) | (35.5 | ) | ||||
|
Cash used in financing activities
|
(28.2 | ) | (247.3 | ) | ||||
|
Effect of exchange rate changes on cash
|
(10.9 | ) | (8.0 | ) | ||||
|
Change in cash and cash equivalents
|
(99.1 | ) | (367.2 | ) | ||||
|
Cash and cash equivalents, beginning of period
|
737.6 | 648.1 | ||||||
|
Cash and cash equivalents, end of period
|
$ | 638.5 | $ | 280.9 | ||||
Exhibit 99.2
ManpowerGroup Second Quarter Results July 21, 2014
ManpowerGroup | July 2014 * Forward-Looking Statements This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on managements’ current expectations or beliefs, and are subject to known and unknown risks and uncertainties regarding expected future results. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the ManpowerGroup Inc. Annual Report on Form 10-K dated December 31, 2013, 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. Any forward-looking statements in this presentation speak only as of the date hereof. The Company assumes no obligation to update or revise any forward-looking statements. *
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 6% 6% Revenue $5.3B 4% CC 4% CC Revenue $5.3B 30 bps 30 bps Gross Margin 16.9% 46% 27% Operating Profit $187M 43% CC 24% CC Operating Profit $187M 100 bps 60 bps OP Margin 3.5% 55% 29% EPS $1.35 52% CC 26% CC EPS $1.35 Excludes the impact of restructuring charges of $20.0M in Q2 2013. 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. Consolidated Financial Highlights (1)
ManpowerGroup | July 2014 * EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup | July 2014 * Consolidated Gross Margin Change
ManpowerGroup | July 2014 * Growth in CC % Business Line Gross Profit – Q2 2014 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
ManpowerGroup | July 2014 * SG&A Expense Bridge – Q2 YoY (in millions of USD) Productivity Gain 13.3% % of Revenue 13.7% % of Revenue
ManpowerGroup | July 2014 * SG&A Expense Bridge – Q2 YTD YoY (in millions of USD) Productivity Gain 13.7% % of Revenue 14.2% % of Revenue
ManpowerGroup | July 2014 * 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. As Reported Excluding Non-Recurring Items Q2 Financial Highlights 1% 1% Revenue $1.2B 5% CC 5% CC Revenue $1.2B 3% 12% OUP $44M 6% CC 15% CC OUP $44M 10 bps 50 bps OUP Margin 3.8% (1) Americas Segment (22% of Revenue) Included in these amounts is the US, which had revenue of $776M (+4%) and OUP of $29.7M (-3%, or +12% excluding the impact of non-recurring items). Excludes the impact of the US legal charge of $9.0M in Q2 2014 and restructuring charges of $4.4M in Q2 2013. (2)
ManpowerGroup | July 2014 * Americas – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 9% 9% Revenue $2.0B 4% CC 4% CC Revenue $2.0B 69% 60% OUP $96M 62% CC 53% CC OUP $96M 180 bps 160 bps OUP Margin 4.9% Southern Europe Segment (37% of Revenue) Included in these amounts is France, which had revenue of $1.4B (+2% CC) and OUP of $71.9M (+68% CC, or +60% excluding the impact of restructuring charges in Q2 2013). Excludes the impact of restructuring charges of $3.2M in Q2 2013. (1) (2)
ManpowerGroup | July 2014 * Southern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Spain revenue increased 28% (22% in CC). (1)
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 9% 9% Revenue $1.5B 5% CC 5% CC Revenue $1.5B 39% 9% OUP $46M 34% CC 5% CC OUP $46M 60 bps 0 bps OUP Margin 3.0% Northern Europe Segment (29% of Revenue) Excludes the impact of restructuring charges of $9.3M in Q2 2013. (1)
ManpowerGroup | July 2014 * Northern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 5% 5% Revenue $594M 2% CC 2% CC Revenue $594M 3% 1% OUP $21M 6% CC 4% CC OUP $21M 20 bps 20 bps OUP Margin 3.5% APME Segment (11% of Revenue) Excludes the impact of restructuring charges of $0.3M in Q2 2013. (1)
ManpowerGroup | July 2014 * APME – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
ManpowerGroup | July 2014 * Right Management Segment (1% of Revenue) As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 1% 1% Revenue $80M 3% CC 3% CC Revenue $80M 72% 27% OUP $13M 72% CC 27% CC OUP $13M 680 bps 360 bps OUP Margin 16.0% Excludes the impact of restructuring charges of $2.6M in Q2 2013. (1)
ManpowerGroup | July 2014 * Cash Flow Summary – 6 Months YTD
ManpowerGroup | July 2014 * Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) 2014
ManpowerGroup | July 2014 * Credit Facilities – June 30, 2014 (in millions of USD) (1) (2)
ManpowerGroup | July 2014 * Third Quarter Outlook Revenue Total Up 5-7% (Up 4-6% CC) Americas Up 4-6% (Up 6-8% CC) Southern Europe Up 5-7% (Up 3-5% CC) Northern Europe Up 10-12% (Up 6-8% CC) APME Flat/Up 2% (Flat/Up 2% CC) Right Management Right Management Flat/Down 2% (Down 2-4% CC) Gross Profit Margin Gross Profit Margin 16.5 – 16.7% Operating Profit Margin Operating Profit Margin 3.7 – 3.9% Tax Rate Tax Rate 39% EPS EPS $1.46 – $1.54 (favorable $0.02 currency)
ManpowerGroup | July 2014 * Where are we on our journey to 4%... TTM (Trailing Twelve Months) EBITA margin of 3.4%. 100 basis point gain since 2012 and ahead of our expectations. TTM EBITA of $712M is at an all-time record and TTM EBITA margin is the highest in more than 15 years. Above analysis excludes restructuring charges and other non-recurring items in all periods. As introduced in February 2013
ManpowerGroup | July 2014 * Highlights Strong second quarter execution Positive revenue momentum continued in major geographies Committed to driving profitable growth and strong operating leverage Experis and ManpowerGroup Solutions well positioned to meet increasing client needs Management transition smooth and on track
ManpowerGroup | July 2014 * * ManpowerGroup | July 2014 Questions