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): January 30, 2013
MANPOWERGROUP INC.
(Exact name of registrant as specified in its charter)
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Wisconsin
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1-10686
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39-1672779
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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100 Manpower Place
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Milwaukee, Wisconsin
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53212
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(Address of principal executive offices)
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(Zip Code)
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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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition
On January 30, 2013, we issued a press release announcing our results of operations for the three months and year ended December 31, 2012. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Exhibits.
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Exhibit No.
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Description
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| 99.1 |
Press Release dated January 30, 2013
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| 99.2 |
Presentation materials for January 30, 2013 conference call
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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.
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MANPOWERGROUP INC.
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Dated: January 30, 2013
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By:
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/s/ Michael J. Van Handel | ||
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Michael J. Van Handel
Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
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Exhibit No.
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Description
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| 99.1 |
Press Release dated January 30, 2013
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| 99.2 |
Presentation materials for January 30, 2013 conference call
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Exhibit 99.1
FOR IMMEDIATE RELEASE Contact:
Mike Van Handel
+1.414.906.6305
michael.vanhandel@manpowergroup.com
ManpowerGroup Reports 4th Quarter and Full Year 2012 Results
MILWAUKEE, January 30, 2013 -- ManpowerGroup (NYSE: MAN) today reported net earnings of 68 cents per diluted share for the three months ended December 31, 2012 compared to 78 cents per share in the prior period. The net earnings in the quarter were $53.3 million compared to $63.6 million a year earlier. Revenues for the fourth quarter totaled $5.2 billion, a decrease of 5 percent from the year earlier period, or a decrease of 4 percent in constant currency.
Included in the current year fourth quarter results is a reorganization charge, primarily related to office consolidations and severance costs of $26.6 million ($18.3 million after tax or 23 cents per diluted share). Included in the prior year fourth quarter is a reorganization charge of $20.5 million ($16.3 million after tax or 20 cents per diluted share). Excluding these charges, net earnings per diluted share for the three months ended December 31, 2012 declined 7 percent to 91 cents per share compared to 98 cents per share in the year earlier period. Fourth quarter results were unfavorably impacted by 1 cent per diluted share as foreign currencies were relatively weaker compared to the prior year.
“We finished 2012 with a solid fourth quarter performance. Our team was able to achieve a modest revenue increase compared to the third quarter while pursuing strong price discipline and intense expense management. Our free cash flow was strong, aided by good collection activity. All offerings performed well, with ManpowerGroup Solutions and Right Management leading the way with revenue growing 7 percent in constant currency.
“We remain appropriately optimistic as we look into 2013. We are on guard for potential disruption in all markets, particularly Europe, but at this time we do not anticipate any dramatic negatives. Our first quarter is traditionally a seasonally challenging period and given the tepid demand environment, we are anticipating the first quarter of 2013 diluted earnings per share to be in the range of 40 cents to 48 cents before reorganization charges.”
Net earnings per diluted share for the year ended December 31, 2012 was $2.47 compared to $3.04 per diluted share in 2011. Net earnings were $197.6 million compared to $251.6 million in the prior year. Revenues for the year were $20.7 billion, a decrease of 6 percent from the prior year, or 1 percent in constant currency.
Earnings for the full year 2012 include reorganization costs and legal settlement costs of 48 cents per diluted share. Earnings in the prior year include reorganization costs of 20 cents per diluted share. Excluding these charges, net earnings per diluted share for 2012 declined 9 percent to $2.95 per share compared to $3.24 the prior year. Additionally, 2012 results were unfavorably impacted by 15 cents per diluted share due to changes in foreign currencies compared to the prior year.
In conjunction with its fourth quarter and full year earnings release, ManpowerGroup will broadcast its conference call live over the Internet on January 30, 2013 at 7:30 a.m. CT (8:30 a.m. ET). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://www.manpowergroup.com/investors.
Supplemental financial information referenced in the conference call can be found at http://www.manpowergroup.com/investors.
About ManpowerGroup™
ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $21 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world's largest and industry-leading network of 3,500 offices in 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined — because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. Learn more about how ManpowerGroup can help you win in the Human Age at www.manpowergroup.com.
ManpowerGroup is the most trusted brand in the industry, and was once again the only company in our industry to be named to the Ethisphere Institute's 2012 World's Most Ethical Companies list for our proven commitment to ethical business practices, including an outstanding commitment to ethical leadership, compliance practices and corporate social responsibility.
In January 2011, at the World Economic Forum Annual Meeting in Davos, Switzerland, ManpowerGroup announced the world has entered the Human Age, where talent has replaced capital as the key competitive differentiator. This concept of talentism as the new capitalism continues to resonate and was echoed as a core theme of the 2012 Annual Meeting of the World Economic Forum in Davos. Learn more about this new age at www.manpowergroup.com/humanage
Gain access to ManpowerGroup's extensive thought leadership papers, annual Talent Shortage surveys and the Manpower Employment Outlook Survey, one of the most trusted indices of employment activity in the world, via the ManpowerGroup World of Work Insight iPad application. This thought leadership app explores the challenges faced by employers navigating the changing world of work and provides in-depth commentary, analysis, insight and advice on strategies for success.
Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: twitter.com/manpowergroupjj. Joerres is one of only 20 Fortune 500 CEOs who leverages a Twitter account to get his message out.
Forward-Looking Statements
This news release contains statements, including earnings 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 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, 2011, which information is incorporated herein by reference.
###
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Results of Operations
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||||||||||||||||
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(In millions, except per share data)
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||||||||||||||||
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Three Months Ended December 31
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||||||||||||||||
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% Variance
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||||||||||||||||
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Amount
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Constant
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|||||||||||||||
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2012
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2011
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Reported
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Currency
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|||||||||||||
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(Unaudited)
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||||||||||||||||
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Revenues from services (a)
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$ | 5,202.6 | $ | 5,484.0 | -5.1 | % | -3.5 | % | ||||||||
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Cost of services
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4,325.9 | 4,548.8 | -4.9 | % | -3.2 | % | ||||||||||
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Gross profit
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876.7 | 935.2 | -6.3 | % | -4.9 | % | ||||||||||
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Selling and administrative expenses
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771.8 | 805.4 | -4.2 | % | -2.8 | % | ||||||||||
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Operating profit
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104.9 | 129.8 | -19.1 | % | -17.5 | % | ||||||||||
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Interest and other expenses
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10.1 | 10.4 | -2.6 | % | ||||||||||||
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Earnings before income taxes
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94.8 | 119.4 | -20.6 | % | -19.0 | % | ||||||||||
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Provision for income taxes
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41.5 | 55.8 | -25.6 | % | ||||||||||||
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Net earnings
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$ | 53.3 | $ | 63.6 | -16.2 | % | -14.5 | % | ||||||||
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Net earnings per share - basic
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$ | 0.68 | $ | 0.79 | -13.9 | % | ||||||||||
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Net earnings per share - diluted
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$ | 0.68 | $ | 0.78 | -12.8 | % | -11.5 | % | ||||||||
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Weighted average shares - basic
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78.1 | 80.8 | -3.4 | % | ||||||||||||
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Weighted average shares - diluted
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78.6 | 81.4 | -3.4 | % | ||||||||||||
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(a) Revenues from services include fees received from our franchise offices of $6.0 million and $6.4 million for the three months ended December 31, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $257.4 million and $257.2 million for the three months ended December 31, 2012 and 2011, respectively.
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ManpowerGroup
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Operating Unit Results
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(In millions)
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Three Months Ended December 31
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% Variance
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Amount
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Constant
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|||||||||||||||
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2012
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2011
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Reported
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Currency
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|||||||||||||
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(Unaudited)
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||||||||||||||||
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Revenues from Services:
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||||||||||||||||
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Americas:
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||||||||||||||||
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United States (a)
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$ | 750.7 | $ | 765.9 | -2.0 | % | -2.0 | % | ||||||||
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Other Americas
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405.4 | 389.8 | 4.0 | % | 4.1 | % | ||||||||||
| 1,156.1 | 1,155.7 | 0.0 | % | 0.1 | % | |||||||||||
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Southern Europe:
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France
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1,314.2 | 1,511.0 | -13.0 | % | -9.5 | % | ||||||||||
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Italy
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268.5 | 305.3 | -12.0 | % | -8.5 | % | ||||||||||
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Other Southern Europe
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194.0 | 196.3 | -1.2 | % | 2.2 | % | ||||||||||
| 1,776.7 | 2,012.6 | -11.7 | % | -8.2 | % | |||||||||||
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Northern Europe
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1,487.2 | 1,540.9 | -3.5 | % | -2.8 | % | ||||||||||
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APME
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697.7 | 695.0 | 0.4 | % | 1.4 | % | ||||||||||
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Right Management
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84.9 | 79.8 | 6.3 | % | 6.5 | % | ||||||||||
| $ | 5,202.6 | $ | 5,484.0 | -5.1 | % | -3.5 | % | |||||||||
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Operating Unit Profit (Loss):
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Americas:
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United States
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$ | 21.7 | $ | 26.1 | -16.9 | % | -16.9 | % | ||||||||
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Other Americas
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13.9 | 12.1 | 13.9 | % | 11.1 | % | ||||||||||
| 35.6 | 38.2 | -7.1 | % | -7.9 | % | |||||||||||
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Southern Europe:
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France
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18.0 | 20.5 | -12.0 | % | -7.7 | % | ||||||||||
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Italy
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8.9 | 19.7 | -54.9 | % | -52.0 | % | ||||||||||
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Other Southern Europe
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1.4 | 2.9 | -50.1 | % | -49.1 | % | ||||||||||
| 28.3 | 43.1 | -34.2 | % | -30.7 | % | |||||||||||
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Northern Europe
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34.2 | 51.8 | -33.9 | % | -33.6 | % | ||||||||||
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APME
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28.5 | 21.7 | 31.2 | % | 33.0 | % | ||||||||||
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Right Management
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8.2 | (5.6 | ) | N/A | N/A | |||||||||||
| 134.8 | 149.2 | |||||||||||||||
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Corporate expenses
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(38.3 | ) | (30.7 | ) | ||||||||||||
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Intangible asset amortization expense
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(9.3 | ) | (10.0 | ) | ||||||||||||
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Reclassification of French business tax
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17.7 | 21.3 | ||||||||||||||
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Operating profit
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104.9 | 129.8 | -19.1 | % | -17.5 | % | ||||||||||
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Interest and other expenses (b)
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(10.1 | ) | (10.4 | ) | ||||||||||||
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Earnings before income taxes
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$ | 94.8 | $ | 119.4 | ||||||||||||
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(a) In the United States, revenues from services include fees received from our franchise offices of $3.7 million and $3.8 million for the three months ended December 31, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $170.9 million and $167.5 million for the three months ended December 31, 2012 and 2011, respectively.
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||||||||||||||||
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(b) The components of interest and other expenses were:
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||||||||||||||||
| 2012 | 2011 | |||||||||||||||
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Interest expense
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$ | 10.7 | $ | 10.3 | ||||||||||||
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Interest income
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(1.9 | ) | (2.3 | ) | ||||||||||||
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Foreign exchange losses
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0.3 | 0.8 | ||||||||||||||
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Miscellaneous expense, net
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1.0 | 1.6 | ||||||||||||||
| $ | 10.1 | $ | 10.4 | |||||||||||||
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ManpowerGroup
|
||||||||||||||||
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Results of Operations
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||||||||||||||||
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(In millions, except per share data)
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||||||||||||||||
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Year Ended December 31
|
||||||||||||||||
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% Variance
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||||||||||||||||
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Amount
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Constant
|
|||||||||||||||
|
2012
|
2011
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from services (a)
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$ | 20,678.0 | $ | 22,006.0 | -6.0 | % | -1.4 | % | ||||||||
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Cost of services
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17,236.0 | 18,299.7 | -5.8 | % | -1.1 | % | ||||||||||
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Gross profit
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3,442.0 | 3,706.3 | -7.1 | % | -3.0 | % | ||||||||||
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Selling and administrative expenses
|
3,030.3 | 3,182.1 | -4.8 | % | -0.8 | % | ||||||||||
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Operating profit
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411.7 | 524.2 | -21.5 | % | -16.5 | % | ||||||||||
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Interest and other expenses
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43.3 | 44.3 | -2.3 | % | ||||||||||||
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Earnings before income taxes
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368.4 | 479.9 | -23.2 | % | -18.2 | % | ||||||||||
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Provision for income taxes
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170.8 | 228.3 | -25.2 | % | ||||||||||||
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Net earnings
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$ | 197.6 | $ | 251.6 | -21.5 | % | -16.3 | % | ||||||||
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Net earnings per share - basic
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$ | 2.49 | $ | 3.08 | -19.2 | % | ||||||||||
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Net earnings per share - diluted
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$ | 2.47 | $ | 3.04 | -18.8 | % | -14.1 | % | ||||||||
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Weighted average shares - basic
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79.5 | 81.6 | -2.7 | % | ||||||||||||
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Weighted average shares - diluted
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80.1 | 82.8 | -3.3 | % | ||||||||||||
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(a) Revenues from services include fees received from our franchise offices of $23.9 million and $25.2 million for the years ended December 31, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,051.8 million and $1,075.2 million for the years ended December 31, 2012 and 2011, respectively.
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||||||||||||||||
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ManpowerGroup
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||||||||||||||||
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Operating Unit Results
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||||||||||||||||
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(In millions)
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||||||||||||||||
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Year Ended December 31
|
||||||||||||||||
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% Variance
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||||||||||||||||
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Amount
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Constant
|
|||||||||||||||
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2012
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2011
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Reported
|
Currency
|
|||||||||||||
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(Unaudited)
|
||||||||||||||||
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Revenues from Services:
|
||||||||||||||||
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Americas:
|
||||||||||||||||
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United States (a)
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$ | 3,010.5 | $ | 3,137.3 | -4.0 | % | -4.0 | % | ||||||||
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Other Americas
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1,585.4 | 1,512.1 | 4.8 | % | 9.9 | % | ||||||||||
| 4,595.9 | 4,649.4 | -1.2 | % | 0.5 | % | |||||||||||
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Southern Europe:
|
||||||||||||||||
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France
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5,425.6 | 6,179.1 | -12.2 | % | -4.6 | % | ||||||||||
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Italy
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1,056.8 | 1,255.8 | -15.8 | % | -8.9 | % | ||||||||||
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Other Southern Europe
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768.5 | 776.9 | -1.1 | % | 6.9 | % | ||||||||||
| 7,250.9 | 8,211.8 | -11.7 | % | -4.2 | % | |||||||||||
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Northern Europe
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5,773.9 | 6,159.4 | -6.3 | % | -1.3 | % | ||||||||||
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APME
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2,728.8 | 2,661.7 | 2.5 | % | 3.1 | % | ||||||||||
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Right Management
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328.5 | 323.7 | 1.5 | % | 3.4 | % | ||||||||||
| $ | 20,678.0 | $ | 22,006.0 | -6.0 | % | -1.4 | % | |||||||||
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Operating Unit Profit (Loss):
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
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United States
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$ | 60.8 | $ | 94.1 | -35.4 | % | -35.4 | % | ||||||||
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Other Americas
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50.6 | 47.8 | 5.7 | % | 9.1 | % | ||||||||||
| 111.4 | 141.9 | -21.6 | % | -20.4 | % | |||||||||||
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Southern Europe:
|
||||||||||||||||
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France
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56.7 | 85.2 | -33.4 | % | -26.6 | % | ||||||||||
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Italy
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45.4 | 74.1 | -38.7 | % | -33.4 | % | ||||||||||
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Other Southern Europe
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10.1 | 10.8 | -6.8 | % | 1.0 | % | ||||||||||
| 112.2 | 170.1 | -34.0 | % | -27.8 | % | |||||||||||
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Northern Europe
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159.8 | 212.6 | -24.8 | % | -21.0 | % | ||||||||||
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APME
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90.7 | 78.8 | 15.2 | % | 16.2 | % | ||||||||||
|
Right Management
|
13.4 | (1.4 | ) | N/A | N/A | |||||||||||
| 487.5 | 602.0 | |||||||||||||||
|
Corporate expenses
|
(112.0 | ) | (123.1 | ) | ||||||||||||
|
Intangible asset amortization expense
|
(36.7 | ) | (38.9 | ) | ||||||||||||
|
Reclassification of French business tax
|
72.9 | 84.2 | ||||||||||||||
|
Operating profit
|
411.7 | 524.2 | -21.5 | % | -16.5 | % | ||||||||||
|
Interest and other expenses (b)
|
(43.3 | ) | (44.3 | ) | ||||||||||||
|
Earnings before income taxes
|
$ | 368.4 | $ | 479.9 | ||||||||||||
|
(a) In the United States, revenues from services include fees received from our franchise offices of $14.6 million and $13.6 million for the years ended December 31, 2012 and 2011. These fees are primarily based on revenues generated by the franchise offices, which were $691.7 million and $646.1 million for the years ended December 31, 2012 and 2011, respectively.
|
||||||||||||||||
|
(b) The components of interest and other expenses were:
|
||||||||||||||||
| 2012 | 2011 | |||||||||||||||
|
Interest expense
|
$ | 41.8 | $ | 42.8 | ||||||||||||
|
Interest income
|
(6.6 | ) | (7.3 | ) | ||||||||||||
|
Foreign exchange losses
|
0.9 | 2.8 | ||||||||||||||
|
Miscellaneous expenses, net
|
7.2 | 6.0 | ||||||||||||||
| $ | 43.3 | $ | 44.3 | |||||||||||||
|
Consolidated Balance Sheets
|
||||||||
|
(In millions)
|
||||||||
|
Dec. 31
|
Dec. 31
|
|||||||
|
2012
|
2011
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 648.1 | $ | 580.5 | ||||
|
Accounts receivable, net
|
4,179.0 | 4,181.3 | ||||||
|
Prepaid expenses and other assets
|
172.9 | 176.3 | ||||||
|
Future income tax benefits
|
60.6 | 52.4 | ||||||
|
Total current assets
|
5,060.6 | 4,990.5 | ||||||
|
Other assets:
|
||||||||
|
Goodwill and other intangible assets, net
|
1,371.9 | 1,339.6 | ||||||
|
Other assets
|
395.3 | 395.1 | ||||||
|
Total other assets
|
1,767.2 | 1,734.7 | ||||||
|
Property and equipment:
|
||||||||
|
Land, buildings, leasehold improvements and equipment
|
704.1 | 685.6 | ||||||
|
Less: accumulated depreciation and amortization
|
519.3 | 511.1 | ||||||
|
Net property and equipment
|
184.8 | 174.5 | ||||||
|
Total assets
|
$ | 7,012.6 | $ | 6,899.7 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 1,466.5 | $ | 1,370.6 | ||||
|
Employee compensation payable
|
210.7 | 221.9 | ||||||
|
Accrued liabilities
|
533.8 | 520.8 | ||||||
|
Accrued payroll taxes and insurance
|
685.7 | 712.4 | ||||||
|
Value added taxes payable
|
472.5 | 502.3 | ||||||
|
Short-term borrowings and current maturities of long-term debt
|
308.0 | 434.2 | ||||||
|
Total current liabilities
|
3,677.2 | 3,762.2 | ||||||
|
Other liabilities:
|
||||||||
|
Long-term debt
|
462.1 | 266.0 | ||||||
|
Other long-term liabilities
|
372.5 | 388.1 | ||||||
|
Total other liabilities
|
834.6 | 654.1 | ||||||
|
Shareholders' equity:
|
||||||||
|
Common stock
|
1.1 | 1.1 | ||||||
|
Capital in excess of par value
|
2,873.2 | 2,839.9 | ||||||
|
Retained earnings
|
1,101.5 | 971.7 | ||||||
|
Accumulated other comprehensive income
|
34.4 | 35.3 | ||||||
|
Treasury stock, at cost
|
(1,509.4 | ) | (1,364.6 | ) | ||||
|
Total shareholders' equity
|
2,500.8 | 2,483.4 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 7,012.6 | $ | 6,899.7 | ||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
(In millions)
|
||||||||
|
Year Ended
|
||||||||
|
December 31
|
||||||||
|
2012
|
2011
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net earnings
|
$ | 197.6 | $ | 251.6 | ||||
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
100.5 | 104.4 | ||||||
|
Deferred income taxes
|
(11.6 | ) | 24.8 | |||||
|
Provision for doubtful accounts
|
29.2 | 25.9 | ||||||
|
Share-based compensation
|
30.0 | 31.4 | ||||||
|
Excess tax benefit on exercise of share-based awards
|
(0.3 | ) | (1.3 | ) | ||||
|
Changes in operating assets and liabilities, excluding the impact of acquisitions:
|
||||||||
|
Accounts receivable
|
48.3 | (417.1 | ) | |||||
|
Other assets
|
(9.2 | ) | (48.2 | ) | ||||
|
Other liabilities
|
(52.9 | ) | 97.7 | |||||
|
Cash provided by operating activities
|
331.6 | 69.2 | ||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(72.0 | ) | (64.9 | ) | ||||
|
Acquisitions of businesses, net of cash acquired
|
(49.0 | ) | (49.0 | ) | ||||
|
Proceeds from sales of property and equipment
|
3.7 | 4.4 | ||||||
|
Cash used in investing activities
|
(117.3 | ) | (109.5 | ) | ||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Net change in short-term borrowings
|
(6.7 | ) | 15.6 | |||||
|
Proceeds from long-term debt
|
751.6 | 0.8 | ||||||
|
Repayments of long-term debt
|
(703.2 | ) | (1.1 | ) | ||||
|
Proceeds from share-based awards
|
6.0 | 29.5 | ||||||
|
Other share-based award transactions, net
|
(6.3 | ) | 1.3 | |||||
|
Repurchases of common stock
|
(138.2 | ) | (104.5 | ) | ||||
|
Dividends paid
|
(67.8 | ) | (65.1 | ) | ||||
|
Cash used in financing activities
|
(164.6 | ) | (123.5 | ) | ||||
|
Effect of exchange rate changes on cash
|
17.9 | (28.3 | ) | |||||
|
Change in cash and cash equivalents
|
67.6 | (192.1 | ) | |||||
|
Cash and cash equivalents, beginning of period
|
580.5 | 772.6 | ||||||
|
Cash and cash equivalents, end of period
|
$ | 648.1 | $ | 580.5 | ||||
Exhibit 99.2
ManpowerGroup
4th Quarter
January 30, 2013
ManpowerGroup 2012 4th Quarter Results January 2013
Forward-Looking Statement
This presentation includes forward-looking statements,
including earnings projections which are subject to risks and
uncertainties. 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 Manpower Inc. Annual Report
on Form 10-K dated December 31, 2011, 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.
including earnings projections which are subject to risks and
uncertainties. 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 Manpower Inc. Annual Report
on Form 10-K dated December 31, 2011, 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.
ManpowerGroup 2012 4th Quarter Results January 2013
|
As
Reported
|
Excluding Non
-recurring Items |
Q4 Financial Highlights
|
|
5%
|
5%
|
Revenue $5.2B
|
|
4% CC
|
4% CC
|
|
|
20 bps
|
20 bps
|
Gross Margin 16.9%
|
|
19%
|
12%
|
Operating Profit $105M
|
|
17% CC
|
11% CC
|
|
|
40 bps
|
20 bps
|
OP Margin 2.0%
|
|
13%
|
7%
|
EPS $.68
|
|
12% CC
|
6% CC
|
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.
represents the impact of currency on our financial results. Constant Currency is further explained on our Web site.
Consolidated Financial Highlights
3
(1) Excludes the impact of reorganization charges of $26.6M in Q4 2012 and $20.5M in Q4 2011.
(1)
ManpowerGroup 2012 4th Quarter Results January 2013
EPS Bridge - Q4 vs. Guidance Midpoint
4
ManpowerGroup 2012 4th Quarter Results January 2013
Non-Recurring Items
(in millions of USD, except per share amounts)
5
(1) Includes reorganization charges as follows:
Q4 2012: Americas ($1.0M), Southern Europe ($2.8M), Northern Europe ($11.5M), APME ($0.4M), Right Management ($0.5M), Corporate ($10.4M)
FY 2012: Americas ($9.3M), Southern Europe ($2.8M), Northern Europe ($11.5M), APME ($0.4M), Right Management ($10.9M), Corporate ($10.4M)
FY 2011: Americas ($2.4M), Northern Europe ($12.0M), Right Management ($6.1M)
|
|
Q4 2012
|
FY 2012
|
FY 2011
|
||||||
|
|
Pre-tax
Earnings
|
Net
Earnings
|
EPS -
Diluted
|
Pre-tax
Earnings
|
Net
Earnings
|
EPS -
Diluted
|
Pre-tax
Earnings
|
Net
Earnings
|
EPS -
Diluted
|
|
Earnings, As Reported
|
$94.8
|
$ 53.3
|
$ 0.68
|
$ 368.4
|
$ 197.6
|
$ 2.47
|
$ 479.9
|
$ 251.6
|
$ 3.04
|
|
Reorganization Charges
|
26.6
|
18.3
|
0.23
|
45.4
|
32.1
|
0.40
|
20.5
|
16.3
|
0.20
|
|
Legal Costs - US
|
-
|
-
|
-
|
10.0
|
6.5
|
0.08
|
-
|
-
|
-
|
|
Earnings, Excluding non
-recurring items |
$ 121.4
|
$ 71.6
|
$ 0.91
|
$ 423.8
|
$ 236.2
|
$ 2.95
|
$ 500.4
|
$ 267.9
|
$ 3.24
|
(1)
ManpowerGroup 2012 4th Quarter Results January 2013
Consolidated Gross Margin Change
6
ManpowerGroup 2012 4th Quarter Results January 2013
7
Business Line Gross Profit - Q4 2012
█ ManpowerGroup Solutions █ Right Management
ManpowerGroup 2012 4th Quarter Results January 2013
8
ManpowerGroup 2012 4th Quarter Results January 2013
|
As
Reported
|
Excluding
Non-recurring
Items |
Q4 Financial Highlights
|
|
0%
|
0%
|
Revenue $1.2B
|
|
0% CC
|
0% CC
|
|
|
7%
|
10%
|
OUP $36M
|
|
8% CC
|
11% CC
|
|
|
20 bps
|
30 bps
|
OUP Margin 3.1%
|
9
(1)
Americas Segment
(22% of Revenue)
(1) Included in these amounts is the US, which had revenue of $751M (-2%) and OUP of $22M (-17%, or
-20% excluding reorganization charges in Q4 2012 and Q4 2011).
-20% excluding reorganization charges in Q4 2012 and Q4 2011).
(2) Excludes the impact of reorganization charges of $1.0M in Q4 2012 and $2.4M in Q4 2011.
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.
equal to segment revenues less direct costs and branch and national headquarters operating
costs.
(2)
ManpowerGroup 2012 4th Quarter Results January 2013
Americas - Q4 Revenue Growth YoY
10
% of Segment
ManpowerGroup 2012 4th Quarter Results January 2013
|
As
Reported
|
Excluding
Non-recurring
Items |
Q4 Financial Highlights
|
|
12%
|
12%
|
Revenue $1.8B
|
|
8% CC
|
8% CC
|
|
|
34%
|
28%
|
OUP $28M
|
|
31% CC
|
24% CC
|
|
|
50 bps
|
30 bps
|
OUP Margin 1.6%
|
11
(1)
Southern Europe Segment
(34% of Revenue)
(1) Included in these amounts is France, which had revenue of $1.3B (-9% CC) and OUP of $18M (-8% CC, or -1%
excluding reorganization charges in Q4 2012). On an organic basis, France revenue decreased 10% in CC. On
an organic basis, Segment revenue decreased 9% in CC.
excluding reorganization charges in Q4 2012). On an organic basis, France revenue decreased 10% in CC. On
an organic basis, Segment revenue decreased 9% in CC.
(2) Excludes the impact of reorganization charges of $2.8M in Q4 2012.
(2)
ManpowerGroup 2012 4th Quarter Results January 2013
Southern Europe - Q4 Revenue Growth YoY
12
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
74%
15%
5%
6%
(1)
(1) On an organic basis, France revenue decreased 14% (-10% in CC).
ManpowerGroup 2012 4th Quarter Results January 2013
|
As
Reported
|
Excluding
Non-recurring
Items |
Q4 Financial Highlights
|
|
3%
|
3%
|
Revenue $1.5B
|
|
3% CC
|
3% CC
|
|
|
34%
|
28%
|
OUP $34M
|
|
34% CC
|
28% CC
|
|
|
110 bps
|
100 bps
|
OUP Margin 2.3%
|
13
Northern Europe Segment
(29% of Revenue)
(1)
(1) Excludes the impact of reorganization charges of $11.5M in Q4 2012 and $12.0M in Q4 2011.
ManpowerGroup 2012 4th Quarter Results January 2013
Northern Europe - Q4 Revenue Growth YoY
14
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
26%
24%
12%
10%
21%
7%
ManpowerGroup 2012 4th Quarter Results January 2013
|
As
Reported
|
Excluding
Non-recurring
Items |
Q4 Financial Highlights
|
|
0%
|
0%
|
Revenue $698M
|
|
1% CC
|
1% CC
|
|
|
31%
|
33%
|
OUP $28M
|
|
33% CC
|
35% CC
|
|
|
100 bps
|
100 bps
|
OUP Margin 4.1%
|
APME Segment
(13% of Revenue)
15
(1)
(1) Excludes the impact of reorganization charges of $0.4M in Q4 2012.
ManpowerGroup 2012 4th Quarter Results January 2013
APME - Q4 Revenue Growth YoY
16
ManpowerGroup 2012 4th Quarter Results January 2013
17
Right Management Segment
(2% of Revenue)
|
As
Reported
|
Excluding
Non-recurring
Items |
Q4 Financial Highlights
|
|
6%
|
6%
|
Revenue $85M
|
|
7% CC
|
7% CC
|
|
|
N/A
|
N/A
|
OUP $8M
|
|
N/A
|
N/A
|
|
|
1670 bps
|
960 bps
|
OUP Margin 9.7%
|
(1)
(1) Excludes the impact of reorganization charges of $0.5M in Q4 2012 and $6.1M in Q4 2011.
ManpowerGroup 2012 4th Quarter Results January 2013
|
($ in millions)
|
2012
|
|
2011
|
|
Cash provided by operating activities
|
332
|
|
69
|
|
Capital Expenditures
|
(72)
|
|
(65)
|
|
Free Cash Flow
|
260
|
|
4
|
|
Change in Debt
|
42
|
|
15
|
|
Share Repurchases
|
(138)
|
|
(105)
|
|
Dividends paid
|
(68)
|
|
(65)
|
|
Acquisitions of Businesses, net
|
(49)
|
|
(49)
|
|
Effect of Exchange Rate Changes
|
18
|
|
(28)
|
|
Other
|
3
|
|
36
|
|
Change in Cash
|
68
|
|
(192)
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Summary - Full Year
18
ManpowerGroup 2012 4th Quarter Results January 2013
Balance Sheet Highlights
Total Debt
($ in millions)
Total Debt to
ManpowerGroup 2012 4th Quarter Results January 2013
|
|
Interest
Rate
|
Maturity
Date
|
Total
Outstanding
at 12/31/12 |
|
Remaining
Available
at 12/31/12
|
|
|
Euro Notes:
|
|
|
|
|
|
|
|
- Euro 200M
|
4.86%
|
Jun 2013
|
264
|
|
-
|
|
|
- Euro 350M
|
4.505%
|
Jun 2018
|
462
|
|
-
|
|
|
Revolving Credit Agreement
|
1.48%
|
Oct 2016
|
-
|
|
799
|
|
|
Uncommitted lines and Other
|
Various
|
Various
|
44
|
|
335
|
|
|
Total Debt
|
|
|
770
|
|
1,134
|
Credit Facilities
($ in millions)
($ in millions)
20
Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $379.4M. Total subsidiary borrowings are
limited to $300M due to restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are
limited to $600M.
limited to $300M due to restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are
limited to $600M.
(1)
(2)
(2)
(1)
The $800M agreement requires that we comply with a Leverage Ratio (Debt-to-EBITDA) of not greater than 3.5 to 1 and a
Fixed Charge Coverage Ratio of not less than 1.5 to 1, in addition to other customary restrictive covenants. As defined in the
agreement, we had a Debt-to-EBITDA ratio of 0.97 and a fixed charge coverage ratio of 2.82 as of December 31, 2012. As
of December 31, 2012, there were $0.9M of standby letters of credit issued under the agreement.
Fixed Charge Coverage Ratio of not less than 1.5 to 1, in addition to other customary restrictive covenants. As defined in the
agreement, we had a Debt-to-EBITDA ratio of 0.97 and a fixed charge coverage ratio of 2.82 as of December 31, 2012. As
of December 31, 2012, there were $0.9M of standby letters of credit issued under the agreement.
ManpowerGroup 2012 4th Quarter Results January 2013
|
Revenue
|
Total
|
Down 6-8% (Down 6-8% CC)
|
|
|
Americas
|
Down 2-4% (Down 1-3% CC)
|
|
|
Southern Europe
|
Down 10-12% (Down 11-13% CC)
|
|
|
Northern Europe
|
Down 5-7% (Down 6-8% CC)
|
|
|
APME
|
Down 6-8% (Down 1-3% CC)
|
|
Right Management
|
Up 2-4% (Up 2-4% CC)
|
|
|
Gross Profit Margin
|
16.6 - 16.8%
|
|
|
Operating Profit Margin
|
1.4 - 1.6%
|
|
|
Tax Rate
|
41%
|
|
|
EPS (before reorganization charges)
|
$0.40 - $0.48 (no currency impact)
|
|
First Quarter Outlook
21
(36% excl. reclassification of France business tax
and 2012 WOTC credit)
and 2012 WOTC credit)
ManpowerGroup 2012 4th Quarter Results January 2013
Strategic Drivers
22
ManpowerGroup 2012 4th Quarter Results January 2013
ManpowerGroup 2012 4th Quarter Results January 2013
Questions
23