ManpowerGroup Reports 2nd Quarter 2022 Results
- Revenues of
$5.1 billion (-4% as reported, +6% constant currency (CC)) - Gross profit margin of 18.2%, aided by high levels of permanent recruitment activity
- Continued strong performance of higher margin brands with significant revenue growth in Experis and Talent Solutions. Manpower performance was more modest due to supply chain disruptions in certain European markets
- Improved profitability with expanded EBITA and operating profit margins
$100 million of common stock repurchased during the quarter- Refinanced existing €400 million
Euro Note , extending maturity fromSeptember 2022 toJune 2027
The current year quarter included integration costs from the
Financial results in the quarter were also impacted by the stronger U.S. dollar relative to foreign currencies compared to the prior year period, resulting in a
As we start the third quarter, labor markets remain very solid and demand for talent is strong. We continue to monitor those sectors in
We anticipate diluted earnings per share in the third quarter will be between
Net earnings for the six months ended
In conjunction with its second quarter earnings release,
Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis and Talent Solutions – creates substantially more value for candidates and clients across more than 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity - as a best place to work for Women, Inclusion, Equality and Disability and in 2022
This news release contains statements, including statements regarding economic and geopolitical uncertainty, labor and financial outlook, and the Company's strategic initiatives and brands 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 due to numerous factors. These factors include those found in the Company's reports filed with the
|
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Results of Operations |
||||
(In millions, except per share data) |
||||
Three Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from services (a) |
$ 5,074.1 |
$ 5,277.1 |
-3.8 % |
5.7 % |
Cost of services |
4,152.9 |
4,417.0 |
-6.0 % |
3.6 % |
Gross profit |
921.2 |
860.1 |
7.1 % |
16.4 % |
Selling and administrative expenses |
740.5 |
690.2 |
7.3 % |
16.0 % |
Operating profit |
180.7 |
169.9 |
6.3 % |
18.1 % |
Interest and other expenses, net |
6.7 |
2.8 |
135.3 % |
|
Earnings before income taxes |
174.0 |
167.1 |
4.1 % |
15.5 % |
Provision for income taxes |
51.8 |
55.5 |
-6.7 % |
|
Net earnings |
$ 122.2 |
$ 111.6 |
9.5 % |
21.5 % |
Net earnings per share - basic |
$ 2.32 |
$ 2.05 |
13.2 % |
|
Net earnings per share - diluted |
$ 2.29 |
$ 2.02 |
13.4 % |
25.7 % |
Weighted average shares - basic |
52.7 |
54.5 |
-3.3 % |
|
Weighted average shares - diluted |
53.4 |
55.4 |
-3.6 % |
|
(a) Revenues from services include fees received from our franchise offices of |
|
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Operating Unit Results |
||||
(In millions) |
||||
Three Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from Services: |
||||
|
||||
United States (a) |
$ 903.9 |
$ 628.8 |
43.7 % |
43.7 % |
Other Americas |
358.8 |
415.5 |
-13.6 % |
-9.0 % |
1,262.7 |
1,044.3 |
20.9 % |
22.7 % |
|
|
||||
|
1,238.2 |
1,346.8 |
-8.1 % |
4.1 % |
|
454.3 |
469.1 |
-3.2 % |
9.7 % |
Other Southern Europe |
508.9 |
606.5 |
-16.1 % |
-7.8 % |
2,201.4 |
2,422.4 |
-9.1 % |
2.2 % |
|
|
1,027.1 |
1,190.5 |
-13.7 % |
-2.4 % |
APME |
603.7 |
619.9 |
-2.6 % |
9.7 % |
5,094.9 |
5,277.1 |
|||
Intercompany Eliminations |
(20.8) |
- |
||
$ 5,074.1 |
$ 5,277.1 |
-3.8 % |
5.7 % |
|
Operating Unit Profit: |
||||
|
||||
|
$ 64.7 |
$ 38.0 |
70.3 % |
70.3 % |
Other Americas |
16.2 |
18.0 |
-10.4 % |
-4.1 % |
80.9 |
56.0 |
44.4 % |
46.4 % |
|
|
||||
|
62.3 |
65.7 |
-5.2 % |
7.5 % |
|
35.5 |
31.7 |
12.0 % |
27.1 % |
Other Southern Europe |
13.9 |
17.9 |
-22.6 % |
-16.6 % |
111.7 |
115.3 |
-3.2 % |
9.1 % |
|
|
10.8 |
17.9 |
-39.1 % |
-29.9 % |
APME |
22.5 |
22.3 |
0.8 % |
15.8 % |
225.9 |
211.5 |
|||
Corporate expenses |
(35.8) |
(37.3) |
||
Intangible asset amortization expense |
(9.4) |
(4.3) |
||
Operating profit |
180.7 |
169.9 |
6.3 % |
18.1 % |
Interest and other expenses, net (b) |
(6.7) |
(2.8) |
||
Earnings before income taxes |
$ 174.0 |
$ 167.1 |
||
(a) In |
||||
(b) The components of interest and other expenses, net were: |
||||
2022 |
2021 |
|||
Interest expense |
$ 10.6 |
$ 9.7 |
||
Interest income |
(2.8) |
(3.1) |
||
Foreign exchange loss |
3.3 |
0.6 |
||
Miscellaneous income |
(4.4) |
(4.4) |
||
$ 6.7 |
$ 2.8 |
|
||||
Results of Operations |
||||
(In millions, except per share data) |
||||
Six Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from services (a) |
$ 10,217.4 |
$ 10,201.5 |
0.2 % |
7.7 % |
Cost of services |
8,399.1 |
8,573.3 |
-2.0 % |
5.5 % |
Gross profit |
1,818.3 |
1,628.2 |
11.7 % |
19.2 % |
Selling and administrative expenses |
1,498.9 |
1,359.9 |
10.2 % |
17.1 % |
Operating profit |
319.4 |
268.3 |
19.0 % |
29.6 % |
Interest and other expenses, net |
9.4 |
8.2 |
13.6 % |
|
Earnings before income taxes |
310.0 |
260.1 |
19.2 % |
29.5 % |
Provision for income taxes |
96.2 |
86.5 |
11.2 % |
|
Net earnings |
$ 213.8 |
$ 173.6 |
23.2 % |
33.9 % |
Net earnings per share - basic |
$ 4.02 |
$ 3.17 |
26.8 % |
|
Net earnings per share - diluted |
$ 3.97 |
$ 3.13 |
26.8 % |
38.0 % |
Weighted average shares - basic |
53.2 |
54.8 |
-3.1 % |
|
Weighted average shares - diluted |
53.8 |
55.5 |
-3.0 % |
|
(a) Revenues from services include fees received from our franchise offices of |
|
||||
Operating Unit Results |
||||
(In millions) |
||||
Six Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from Services: |
||||
|
||||
United States (a) |
$ 1,793.3 |
$ 1,237.6 |
44.9 % |
44.9 % |
Other Americas |
720.6 |
809.6 |
-11.0 % |
-7.5 % |
2,513.9 |
2,047.2 |
22.8 % |
24.2 % |
|
|
||||
|
2,430.6 |
2,535.7 |
-4.1 % |
5.8 % |
|
899.3 |
871.9 |
3.1 % |
13.8 % |
Other Southern Europe |
1,065.4 |
1,175.1 |
-9.3 % |
-2.7 % |
4,395.3 |
4,582.7 |
-4.1 % |
5.1 % |
|
|
2,121.6 |
2,324.3 |
-8.7 % |
-0.3 % |
APME |
1,221.9 |
1,247.3 |
-2.0 % |
7.8 % |
10,252.7 |
10,201.5 |
|||
Intercompany Eliminations |
(35.3) |
- |
||
$ 10,217.4 |
$ 10,201.5 |
0.2 % |
7.7 % |
|
Operating Unit Profit: |
||||
|
||||
|
$ 123.0 |
$ 67.2 |
83.0 % |
83.0 % |
Other Americas |
30.7 |
32.9 |
-6.7 % |
-2.0 % |
153.7 |
100.1 |
53.5 % |
55.1 % |
|
|
||||
|
111.9 |
108.3 |
3.3 % |
14.4 % |
|
64.5 |
51.1 |
26.3 % |
39.9 % |
Other Southern Europe |
30.5 |
29.3 |
4.0 % |
9.3 % |
206.9 |
188.7 |
9.6 % |
20.5 % |
|
|
14.1 |
22.7 |
-37.7 % |
-31.0 % |
APME |
41.5 |
41.1 |
0.8 % |
13.2 % |
416.2 |
352.6 |
|||
Corporate expenses |
(77.8) |
(74.5) |
||
Intangible asset amortization expense |
(19.0) |
(9.8) |
||
Operating profit |
319.4 |
268.3 |
19.0 % |
29.6 % |
Interest and other expenses, net (b) |
(9.4) |
(8.2) |
||
Earnings before income taxes |
$ 310.0 |
$ 260.1 |
||
(a) In |
||||
(b) The components of interest and other expenses, net were: |
||||
2022 |
2021 |
|||
Interest expense |
$ 21.0 |
$ 19.9 |
||
Interest income |
(5.6) |
(6.2) |
||
Foreign exchange loss |
5.1 |
3.1 |
||
Miscellaneous income |
(11.1) |
(8.6) |
||
$ 9.4 |
$ 8.2 |
|||
|
|||
Consolidated Balance Sheets |
|||
(In millions) |
|||
|
|
||
2022 |
2021 |
||
(Unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 886.2 |
$ 847.8 |
|
Accounts receivable, net |
5,343.9 |
5,448.2 |
|
Prepaid expenses and other assets |
171.8 |
126.7 |
|
Total current assets |
6,401.9 |
6,422.7 |
|
Other assets: |
|||
|
1,669.9 |
1,722.2 |
|
Intangible assets, net |
560.9 |
583.6 |
|
Operating lease right-of-use asset |
314.0 |
373.4 |
|
Other assets |
561.8 |
610.2 |
|
Total other assets |
3,106.6 |
3,289.4 |
|
Property and equipment: |
|||
Land, buildings, leasehold improvements and equipment |
568.0 |
594.9 |
|
Less: accumulated depreciation and amortization |
458.0 |
478.1 |
|
Net property and equipment |
110.0 |
116.8 |
|
Total assets |
$ 9,618.5 |
$ 9,828.9 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 3,023.2 |
$ 3,039.2 |
|
Employee compensation payable |
229.9 |
299.4 |
|
Accrued liabilities |
540.8 |
584.7 |
|
Accrued payroll taxes and insurance |
704.8 |
789.1 |
|
Value added taxes payable |
421.4 |
515.5 |
|
Short-term borrowings and current maturities of long-term debt |
481.0 |
552.6 |
|
Total current liabilities |
5,401.1 |
5,780.5 |
|
Other liabilities: |
|||
Long-term debt |
942.2 |
565.7 |
|
Long-term operating lease liability |
222.2 |
275.8 |
|
Other long-term liabilities |
608.2 |
675.2 |
|
Total other liabilities |
1,772.6 |
1,516.7 |
|
Shareholders' equity: |
|||
|
|||
Common stock |
1.2 |
1.2 |
|
Capital in excess of par value |
3,465.8 |
3,444.7 |
|
Retained earnings |
3,777.2 |
3,634.6 |
|
Accumulated other comprehensive loss |
(471.5) |
(389.4) |
|
|
(4,337.5) |
(4,169.4) |
|
Total ManpowerGroup shareholders' equity |
2,435.2 |
2,521.7 |
|
Noncontrolling interests |
9.6 |
10.0 |
|
Total shareholders' equity |
2,444.8 |
2,531.7 |
|
Total liabilities and shareholders' equity |
$ 9,618.5 |
$ 9,828.9 |
|
|||
Consolidated Statements of Cash Flows |
|||
(In millions) |
|||
Six Months Ended |
|||
|
|||
2022 |
2021 |
||
(Unaudited) |
|||
Cash Flows from Operating Activities: |
|||
Net earnings |
$ 213.8 |
$ 173.6 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||
Depreciation and amortization |
42.5 |
34.4 |
|
Loss on sale of a subsidiary |
8.0 |
- |
|
Deferred income taxes |
2.8 |
(13.3) |
|
Provision for doubtful accounts |
6.1 |
9.2 |
|
Share-based compensation |
21.6 |
16.9 |
|
Changes in operating assets and liabilities, excluding the impact of dispositions: |
|||
Accounts receivable |
(218.3) |
(381.7) |
|
Other assets |
(18.0) |
(6.3) |
|
Other liabilities |
(37.2) |
362.6 |
|
Cash provided by operating activities |
21.3 |
195.4 |
|
Cash Flows from Investing Activities: |
|||
Capital expenditures |
(41.7) |
(24.6) |
|
Acquisitions of businesses, net of cash acquired |
- |
(7.1) |
|
Proceeds from the sale of subsidiaries and property and equipment |
1.0 |
0.9 |
|
Cash used in investing activities |
(40.7) |
(30.8) |
|
Cash Flows from Financing Activities: |
|||
Net change in short-term borrowings |
(3.9) |
3.1 |
|
Repayments of revolving debt facility |
(25.0) |
- |
|
Proceeds from long-term debt |
416.1 |
0.3 |
|
Repayments of long-term debt |
(2.5) |
(2.2) |
|
Payments for debt issuance costs |
(1.5) |
- |
|
Proceeds from derivative settlement |
2.0 |
- |
|
Payments of contingent consideration for acquisitions |
(1.4) |
(6.2) |
|
Proceeds from share-based awards |
0.3 |
4.2 |
|
Payments to noncontrolling interests |
(1.0) |
- |
|
Other share-based award transactions |
(8.1) |
(4.6) |
|
Repurchases of common stock |
(160.0) |
(150.1) |
|
Dividends paid |
(71.2) |
(68.3) |
|
Cash provided by (used in) |
143.8 |
(223.8) |
|
Effect of exchange rate changes on cash |
(86.0) |
(46.5) |
|
Change in cash and cash equivalents |
38.4 |
(105.7) |
|
Cash and cash equivalents, beginning of period |
847.8 |
1,567.1 |
|
Cash and cash equivalents, end of period |
$ 886.2 |
$ 1,461.4 |
|
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SOURCE
Nick Hengst, +1.414.906.7356, nicholas.hengst@manpowergroup.com