Manpower Reports 2nd Quarter and First Half 2002 Results
MILWAUKEE, Jul 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- Manpower Inc. (NYSE: MAN) today reported that net income for the three months ended June 30, 2002 declined 26 percent to $25.7 million, or 33 cents per diluted share, from $34.6 million, or 45 cents per diluted share, a year earlier. Included in 2001 net income is $3.4 million (net of income taxes) or 4 cents per diluted share of amortization of intangible assets which are no longer amortized, as required by the new accounting rules effective January 1, 2002. Revenues for the second quarter totaled $2.6 billion, a decline of less than 1 percent from the year-earlier period. Systemwide sales were $2.9 billion. Results for the second quarter were positively affected by relatively stronger foreign currencies compared to the prior year period. On a constant currency basis, earnings per diluted share for the quarter were 30 cents on a 3 percent revenue decline.
"The second quarter showed continued improvement in the trends, particularly in the U.S.," Manpower Chairman and CEO, Jeffrey A. Joerres, stated. "While we must remain cautious based on all of the conflicting economic indicators, our U.S. operation is clearly experiencing a recovery. The demand from our light manufacturing customers is leading the way and our office and professional services groups are also showing early signs of improvement. We have also experienced improving trends in some of our European operations, including France, but at a much more modest rate.
"Given our current trends, we anticipate our third quarter earnings per share to be in the range of 43 to 47 cents, which includes an estimated favorable currency impact of 4 cents," Mr. Joerres said.
Net income for the six months ended June 30, 2002 totaled $32.6 million or 42 cents per diluted share, down 47 percent from $61.5 million, or 80 cents per diluted share in 2001. Included in 2001 net income for the six months is $6.6 million (net of income taxes) or 9 cents per diluted share of amortization of intangible assets. Revenues for the six-month period were $4.9 billion, a decline of 7% from the prior year. Systemwide sales were $5.4 billion. On a constant currency basis, earnings per diluted share for the six-month period were 40 cents on a revenue decline of 7%.
In conjunction with its second quarter earnings release, Manpower will broadcast its conference call live over the Internet on July 17, 2002 at 9:00 a.m. CDT (10:00 a.m. EDT). Interested parties are invited to listen by logging on to http://investor.manpower.com .
Manpower Inc. is a world leader in the staffing industry, providing workforce management services and solutions to customers through 3,900 offices in 61 countries. The firm annually provides employment to 2 million people worldwide and is an industry leader in employee assessment and training. Manpower also provides a range of staffing solutions and engagement and consulting services worldwide under the subsidiary brands of Brook Street, Elan, The Empower Group and Jefferson Wells. More information on Manpower Inc. can be found at the Company's Web site, www.manpower.com , which includes a comprehensive Investor Relations section.
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 statement can be found in the Company's reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2001, which information is incorporated herein by reference.
Manpower Inc.
Results of Operations
(In millions, except per share data)
Three Months Ended
June 30
2002 2001 Variance
(Unaudited)
Systemwide sales $2,892.1 $2,944.1 -1.9%
Revenue from services 2,602.9 2,620.1 -0.7%
Cost of services 2,135.3 2,131.0 0.2%
Gross profit 467.6 489.1 -4.4%
Selling and administrative expenses 415.8 426.4 -2.5%
Operating profit 51.8 62.7 -17.4%
Interest and other expenses 9.6 8.6 11.9%
Earnings before income taxes 42.2 54.1 -22.0%
Provision for income taxes 16.5 19.5 -15.2%
Net earnings $25.7 $34.6 -25.8%
Net earnings per share - basic $0.34 $0.46 -26.1%
Net earnings per share - diluted $0.33 $0.45 -26.7%
Weighted average shares - basic 75.9 75.8 0.1%
Weighted average shares - diluted 77.5 76.9 0.8%
Manpower Inc.
Results of Operations
(In millions, except per share data)
Six Months Ended
June 30
2002 2001 Variance
(Unaudited)
Systemwide sales $5,432.1 $5,955.2 -8.8%
Revenue from services 4,886.9 5,272.0 -7.3%
Cost of services 4,004.5 4,299.0 -6.9%
Gross profit 882.4 973.0 -9.3%
Selling and administrative expenses 811.9 858.2 -5.4%
Operating profit 70.5 114.8 -38.6%
Interest and other expenses 17.6 18.8 -6.9%
Earnings before income taxes 52.9 96.0 -44.9%
Provision for income taxes 20.3 34.5 -41.1%
Net earnings $32.6 $61.5 -47.0%
Net earnings per share - basic $0.43 $0.81 -46.9%
Net earnings per share - diluted $0.42 $0.80 -47.5%
Weighted average shares - basic 76.0 75.8 0.2%
Weighted average shares - diluted 77.6 76.9 0.9%
Manpower Inc.
Operating Unit Results
(In millions)
Three Months Ended June 30
% Variance
Amount Constant
2002 2001 Reported Currency
(Unaudited)
Revenues from services:
United States (a) $474.9 $523.5 -9.3% -9.3%
France 943.3 948.6 -0.6% -5.6%
United Kingdom 332.4 369.6 -10.1% -12.8%
Other Europe 497.7 475.3 4.7% -0.1%
Other Operations 354.6 303.1 16.9% 21.0%
$2,602.9 $2,620.1 -0.7% -3.3%
Operating Unit Profit:
United States $8.3 $12.2 -32.6% -32.6%
France 32.7 35.4 -7.6% -12.9%
United Kingdom 4.3 10.2 -57.4% -58.0%
Other Europe 15.6 17.7 -11.9% -16.5%
Other Operations 1.6 1.1 42.9% 8.1%
62.5 76.6
Corporate expenses 10.6 10.0
Amortization of intangibles 0.1 3.9
Operating profit 51.8 62.7 -17.4% -22.3%
Interest and other expense (b) 9.6 8.6
Earnings before taxes $42.2 $54.1
Footnotes:
(a) Systemwide sales in the United States, which includes sales of
Company-owned branches and franchises were $721.4 and $801.5 for the
three months ended June 30, 2002 and 2001, respectively.
(b) The components of interest and other expense (income) were:
Interest expense $10.5 $8.7
Interest income (2.1) (2.4)
Foreign exchange (gains) losses (0.9) (0.9)
Loss on sale of accounts
receivable 0.1 1.7
Miscellaneous, net 2.0 1.5
$9.6 $8.6
Manpower Inc.
Operating Unit Results
(In millions)
Six Months Ended June 30
% Variance
Amount Constant
2002 2001 Reported Currency
(Unaudited)
Revenues from services:
United States (a) $903.6 $1,069.8 -15.5% -15.5%
France 1,710.4 1,887.8 -9.4% -9.8%
United Kingdom 654.6 750.5 -12.8% -13.1%
Other Europe 939.7 974.6 -3.6% -3.5%
Other Operations 678.6 589.3 15.2% 21.5%
$4,886.9 $5,272.0 -7.3% -6.8%
Operating Unit Profit:
United States $3.4 $20.4 -83.5% -83.5%
France 54.9 61.7 -11.1% -12.3%
United Kingdom 7.5 19.9 -62.5% -62.4%
Other Europe 26.1 37.0 -29.5% -30.4%
Other Operations (0.2) 3.0 N/A N/A
91.7 142.0
Corporate expenses 21.1 19.6
Amortization of intangibles 0.1 7.6
Operating profit 70.5 114.8 -38.6% -40.0%
Interest and other expense (b) 17.6 18.8
Earnings before taxes $52.9 $96.0
Footnotes:
(a) Systemwide sales in the United States, which includes sales of
Company-owned branches and franchises were $1,378.3 and $1,663.0 for
the six months ended June 30, 2002 and 2001, respectively.
(b) The components of interest and other expense (income) were:
Interest expense $20.4 $17.4
Interest income (4.7) (5.0)
Foreign exchange (gains) losses (0.7) (0.2)
Loss on sale of accounts
receivable 0.2 4.0
Miscellaneous, net 2.4 2.6
$17.6 $18.8
Manpower Inc.
Consolidated Balance Sheets
(In millions)
Jun. 30 Dec. 31
2002 2001
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $249.0 $245.8
Accounts receivable, net 2,226.8 1,917.8
Prepaid expenses and other
assets 78.7 77.0
Future income tax benefits 74.5 73.8
Total current assets 2,629.0 2,314.4
Other assets:
Intangible assets, net 528.5 480.8
Investments in licensees 59.9 44.7
Other assets 229.1 204.7
Total other assets 817.5 730.2
Property and equipment:
Land, buildings, leasehold
improvements and equipment 505.1 465.4
Less: accumulated depreciation
and amortization 310.1 271.4
Net property and equipment 195.0 194.0
Total assets $3,641.5 $3,238.6
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $546.8 $382.1
Employee compensation payable 98.6 93.2
Accrued liabilities 273.2 234.9
Accrued payroll taxes and
insurance 294.2 300.8
Value added taxes payable 298.4 255.9
Short-term borrowings and
current maturities of long-term
debt 175.0 116.8
Total current liabilities 1,686.2 1,383.7
Other liabilities:
Long-term debt 743.8 718.0
Other long-term liabilities 329.1 322.6
Total other liabilities 1,072.9 1,040.6
Shareholders' equity:
Common stock 0.9 0.9
Capital in excess of par value 1,686.0 1,644.9
Accumulated deficit (362.6) (387.6)
Accumulated other comprehensive
income (loss) (158.1) (190.8)
Treasury stock, at cost (283.8) (253.1)
Total shareholders' equity 882.4 814.3
Total liabilities and
shareholders' equity $3,641.5 $3,238.6
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
Six Months Ended
June 30
2002 2001
(Unaudited)
Cash Flows from Operating Activities:
Net earnings $32.6 $61.5
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 32.8 37.1
Deferred income taxes 2.4 (4.2)
Provision for doubtful accounts 9.1 10.1
Changes in operating assets and
liabilities:
Amounts advanced under the
Receivables Facility --- (80.0)
Accounts receivable (146.4) 28.3
Other assets 19.3 (40.8)
Other liabilities 88.3 50.1
Cash provided by operating
activities 38.1 62.1
Cash Flows from Investing Activities:
Capital expenditures (31.0) (43.9)
Acquisitions of business, net of
cash acquired (29.6) (96.1)
Proceeds from the sale of property
and equipment 1.5 3.2
Cash used by investing activities (59.1) (136.8)
Cash Flows from Financing Activities:
Net borrowings from short-term
facilities and long-term debt 17.3 79.2
Proceeds from stock option and
purchase plans 26.1 7.4
Repurchase of common stock (30.7) (3.3)
Dividends paid (7.6) (7.6)
Cash provided by financing activities 5.1 75.7
Effect of exchange rate changes on
cash 19.1 (13.0)
Change in cash and cash equivalents 3.2 (12.0)
Cash and cash equivalents, beginning
of period 245.8 181.7
Cash and cash equivalents, end of
period $249.0 $169.7
SOURCE Manpower Inc.