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 27, 2006
MANPOWER INC.
(Exact name of registrant as specified in its charter)
| Wisconsin | 1-10686 | 39-1672779 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 5301 North Ironwood Road Milwaukee, Wisconsin |
53217 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (414) 961-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition |
On January 27, 2006, we issued a press release announcing our results of operations for the three-month period and year ended December 31, 2005. 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 January 27, 2006 | |
| 99.2 | Presentation materials for January 27, 2006 conference call | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| MANPOWER INC. | ||||||||
| Dated: | January 27, 2006 |
By: | /s/ MICHAEL J. VAN HANDEL | |||||
| Michael J. Van Handel | ||||||||
| Executive Vice President, | ||||||||
| Chief Financial Officer and Secretary | ||||||||
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release dated January 27, 2006 | |
| 99.2 | Presentation materials for January 27, 2006 conference call | |
Exhibit 99.1
[MANPOWER logo]
| FOR IMMEDIATE RELEASE | Contact: | |||
| Mike Van Handel | ||||
| Chief Financial Officer | ||||
| (414) 906-6305 |
Manpower Reports 4th Quarter and Full-Year 2005 Results
MILWAUKEE, WI, USA, January 27, 2006 – Manpower Inc. (NYSE: MAN) today reported that net earnings per diluted share for the three months ended December 31, 2005 increased 38% to $1.01 from 73 cents in the prior year period. Net earnings in the quarter increased to $89.1 million from $69.6 million a year earlier. Revenues for the fourth quarter totaled $4.1 billion, an increase of one percent from the year-earlier period.
Results for the fourth quarter were negatively affected by relatively weaker foreign currencies compared to the prior year period. On a constant currency basis, net earnings per diluted share for the quarter were $1.07 on an 8 percent improvement in revenues. The fourth quarter was positively impacted by a lower income tax rate as a result of tax planning that was completed during the quarter.
Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, “The Manpower team across the world delivered another solid quarter to cap off a solid year. We had outstanding performances in several geographies, including the U.S., the Nordics, Italy, Australia and Elan, our European IT staffing company.”
Net earnings per diluted share for the year ended December 31, 2005 were $2.87, an increase of 11% from $2.59 per diluted share in 2004. Net earnings were $260.1 million compared to $245.7 million in the prior year. Revenues for the year were $16.1 billion, an increase of 8 percent from the prior year. On a constant currency basis, net earnings per diluted share for the year were $2.89 on an 8 percent improvement in revenues.
Joerres stated, “We continue to make substantial progress on the strategic front with the expansion of our specialty businesses and the depth of Manpower offerings that are helping our clients win in their respective markets.
“The momentum that has been established in 2005 positions us well to take advantage of the positive market trends we are currently experiencing.
- MORE -
“We are anticipating the first quarter of 2006 diluted net earnings per share to be in the range of 36 to 39 cents. This includes an estimated negative currency impact of 3 cents and the impact of expensing stock options of 3 cents per diluted share.”
Included in the 2004 results was a first quarter non-operating gains of $14.2 million ($10.2 million net of income taxes), or 11 cents per diluted share and a third quarter favorable adjustment to the income tax provision of $8.0 million or 8 cents per diluted share.
In conjunction with its fourth quarter earnings release, Manpower will broadcast its conference call live over the Internet on January 27, 2006 at 7:30 a.m. CST (8:30 a.m. EST). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://investor.manpower.com.
Supplemental financial information referenced in the conference call can be found at http://investor.manpower.com.
- # # # -
About Manpower Inc.
Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry, offering customers a continuum of services to meet their needs throughout the employment and business cycle. The company specializes in permanent, temporary and contract recruitment; employee assessment; training; career transition; organizational consulting; and professional financial services. Manpower’s worldwide network of 4,400 offices in 72 countries and territories enables the company to meet the needs of its 400,000 customers per year, including small and medium size enterprises in all industry sectors, as well as the world’s largest multinational corporations. The focus of Manpower’s work is on raising productivity through improved quality, efficiency and cost-reduction, enabling customers to concentrate on their core business activities. In addition to the Manpower brand, the company operates under the brand names of Right Management Consultants, Jefferson Wells and Elan. More information on Manpower Inc. is available at www.manpower.com.
Forward-Looking Statements
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 statements can be found in the Company’s reports filed with the SEC, including the information under the heading ‘Forward-Looking Statements’ in its Annual Report on Form 10-K for the year ended December 31, 2004, which information is incorporated herein by reference.
- # # # -
Manpower Inc.
Results of Operations
(In millions, except per share data)
| Three Months Ended December 31 |
||||||||||||
| % Variance |
||||||||||||
| 2005 |
2004 |
Amount Reported |
Constant Currency |
|||||||||
| (Unaudited) | ||||||||||||
| Revenues from services (a) |
$ | 4,123.2 | $ | 4,072.7 | 1.2 | % | 7.9 | % | ||||
| Cost of services |
3,352.4 | 3,308.5 | 1.3 | % | ||||||||
| Gross profit |
770.8 | 764.2 | 0.9 | % | 7.1 | % | ||||||
| Selling and administrative expenses |
638.5 | 646.7 | -1.3 | % | 4.6 | % | ||||||
| Operating profit |
132.3 | 117.5 | 12.6 | % | 20.5 | % | ||||||
| Interest and other expense |
6.9 | 8.9 | -22.0 | % | ||||||||
| Earnings before income taxes |
125.4 | 108.6 | 15.4 | % | ||||||||
| Provision for income taxes |
36.3 | 39.0 | -7.0 | % | ||||||||
| Net earnings |
$ | 89.1 | $ | 69.6 | 27.9 | % | 41.0 | % | ||||
| Net earnings per share - basic |
$ | 1.02 | $ | 0.77 | 32.5 | % | ||||||
| Net earnings per share - diluted |
$ | 1.01 | $ | 0.73 | 38.4 | % | 46.6 | % | ||||
| Weighted average shares - basic |
87.2 | 90.1 | -3.3 | % | ||||||||
| Weighted average shares - diluted |
88.5 | 97.5 | -9.2 | % | ||||||||
| (a) | Revenues from services include fees received from our franchise offices of $9.1 million and $9.5 million for the three months ended December 31, 2005 and 2004, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $388.6 million and $418.2 million for the three months ended December 31, 2005 and 2004, respectively. |
Manpower Inc.
Operating Unit Results
(In millions)
| Three Months Ended December 31 |
|||||||||||||
| % Variance |
|||||||||||||
| 2005 |
2004 |
Amount Reported |
Constant Currency |
||||||||||
| (Unaudited) | |||||||||||||
| Revenues from Services: |
|||||||||||||
| United States (a) |
$ | 534.2 | $ | 517.4 | 3.2 | % | 3.2 | % | |||||
| France |
1,381.6 | 1,409.9 | -2.0 | % | 6.9 | % | |||||||
| EMEA |
1,467.1 | 1,435.8 | 2.2 | % | 10.9 | % | |||||||
| Jefferson Wells |
96.1 | 102.9 | -6.5 | % | -6.5 | % | |||||||
| Right |
97.4 | 106.9 | -8.9 | % | -5.4 | % | |||||||
| Other Operations |
546.8 | 499.8 | 9.4 | % | 12.3 | % | |||||||
| $ | 4,123.2 | $ | 4,072.7 | 1.2 | % | 7.9 | % | ||||||
| Operating Unit Profit: |
|||||||||||||
| United States |
$ | 23.2 | $ | 16.8 | 38.4 | % | 38.4 | % | |||||
| France |
47.3 | 55.0 | -14.1 | % | -6.2 | % | |||||||
| EMEA |
53.9 | 41.3 | 30.4 | % | 42.9 | % | |||||||
| Jefferson Wells |
4.4 | 13.2 | -66.5 | % | -66.5 | % | |||||||
| Right |
3.3 | (0.4 | ) | N/A | N/A | ||||||||
| Other Operations |
19.4 | 10.3 | 87.1 | % | 91.3 | % | |||||||
| 151.5 | 136.2 | ||||||||||||
| Corporate expenses |
15.9 | 15.4 | |||||||||||
| Amortization of intangible assets |
3.3 | 3.3 | |||||||||||
| Operating profit |
132.3 | 117.5 | 12.6 | % | 20.5 | % | |||||||
| Interest and other expense (b) |
6.9 | 8.9 | |||||||||||
| Earnings before income taxes |
$ | 125.4 | $ | 108.6 | |||||||||
| (a) | In the United States, revenues from services include fees received from the related franchise offices of $6.5 million and $6.7 million for the three months ended December 31, 2005 and 2004, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $311.8 million and $310.4 million for the three months ended December 31, 2005 and 2004, respectively. |
| (b) | The components of interest and other expense (income) were: |
| Interest expense |
$ | 11.9 | $ | 11.4 | ||||
| Interest income |
(3.4 | ) | (3.2 | ) | ||||
| Foreign exchange gains |
— | (1.5 | ) | |||||
| Miscellaneous (income) expense, net |
(1.6 | ) | 2.2 | |||||
| $ | 6.9 | $ | 8.9 | |||||
Manpower Inc.
Results of Operations
(In millions, except per share data)
| Year Ended December 31 |
||||||||||||
| % Variance |
||||||||||||
| 2005 |
2004 |
Amount Reported |
Constant Currency |
|||||||||
| (Unaudited) | ||||||||||||
| Revenues from services (a) |
$ | 16,080.4 | $ | 14,930.0 | 7.7 | % | 7.7 | % | ||||
| Cost of services |
13,131.8 | 12,141.9 | 8.2 | % | ||||||||
| Gross profit |
2,948.6 | 2,788.1 | 5.8 | % | 5.7 | % | ||||||
| Selling and administrative expenses |
2,512.1 | 2,392.3 | 5.0 | % | 4.9 | % | ||||||
| Operating profit |
436.5 | 395.8 | 10.3 | % | 10.9 | % | ||||||
| Interest and other expenses |
41.8 | 26.3 | 59.2 | % | ||||||||
| Earnings before income taxes |
394.7 | 369.5 | 6.8 | % | ||||||||
| Provision for income taxes |
134.6 | 123.8 | 8.7 | % | ||||||||
| Net earnings |
$ | 260.1 | $ | 245.7 | 5.9 | % | 7.9 | % | ||||
| Net earnings per share - basic |
$ | 2.95 | $ | 2.76 | 6.9 | % | ||||||
| Net earnings per share - diluted |
$ | 2.87 | $ | 2.59 | 10.8 | % | 11.6 | % | ||||
| Weighted average shares - basic |
88.1 | 88.9 | -0.9 | % | ||||||||
| Weighted average shares - diluted |
91.1 | 96.8 | -5.8 | % | ||||||||
| (a) | Revenues from services include fees received from our franchise offices of $35.8 million and $34.5 million for the year ended December 31, 2005 and 2004, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,510.7 million and $1,487.1 million for the year ended December 31, 2005 and 2004, respectively. |
Manpower Inc.
Operating Unit Results
(In millions)
| Year Ended December 31 |
||||||||||||
| % Variance |
||||||||||||
| 2005 |
2004 |
Amount Reported |
Constant Currency |
|||||||||
| (Unaudited) | ||||||||||||
| Revenues from Services: |
||||||||||||
| United States (a) |
$ | 2,048.3 | $ | 2,041.1 | 0.4 | % | 0.4 | % | ||||
| France |
5,532.0 | 5,226.7 | 5.8 | % | 6.1 | % | ||||||
| EMEA |
5,604.8 | 5,084.3 | 10.2 | % | 10.7 | % | ||||||
| Jefferson Wells |
386.2 | 340.6 | 13.4 | % | 13.4 | % | ||||||
| Right |
405.9 | 431.1 | -5.9 | % | -6.4 | % | ||||||
| Other Operations |
2,103.2 | 1,806.2 | 16.4 | % | 14.5 | % | ||||||
| $ | 16,080.4 | $ | 14,930.0 | 7.7 | % | 7.7 | % | |||||
| Operating Unit Profit: |
||||||||||||
| United States |
$ | 68.7 | $ | 49.3 | 39.3 | % | 39.3 | % | ||||
| France |
166.5 | 178.8 | -6.9 | % | -6.1 | % | ||||||
| EMEA |
153.9 | 115.1 | 33.7 | % | 36.6 | % | ||||||
| Jefferson Wells |
33.3 | 51.4 | -35.2 | % | -35.2 | % | ||||||
| Right |
24.5 | 24.5 | 0.0 | % | -4.7 | % | ||||||
| Other Operations |
61.7 | 46.0 | 34.1 | % | 31.8 | % | ||||||
| 508.6 | 465.1 | |||||||||||
| Corporate expenses |
59.0 | 57.0 | ||||||||||
| Amortization of intangible assets |
13.1 | 12.3 | ||||||||||
| Operating profit |
436.5 | 395.8 | 10.3 | % | 10.9 | % | ||||||
| Interest and other expenses (b) |
41.8 | 26.3 | ||||||||||
| Earnings before income taxes |
$ | 394.7 | $ | 369.5 | ||||||||
| (a) | In the United States, revenues from services include fees received from the related franchise offices of $24.9 million and $25.0 million for the year ended December 31, 2005 and 2004, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,196.9 million and $1,181.5 million for the year ended December 31, 2005 and 2004, respectively. |
| (b) | The components of interest and other expense (income) were: |
| Interest expense |
$ | 46.7 | $ | 45.4 | ||||
| Interest income |
(9.8 | ) | (9.4 | ) | ||||
| Foreign exchange gains |
— | (1.6 | ) | |||||
| Miscellaneous expense (income), net |
4.9 | (8.1 | ) | |||||
| $ | 41.8 | $ | 26.3 | |||||
Manpower Inc.
Consolidated Balance Sheets
(In millions)
| Dec. 31 2005 |
Dec. 31 2004 |
|||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 454.9 | $ | 531.8 | ||||
| Accounts receivable, net |
3,208.2 | 3,227.8 | ||||||
| Prepaid expenses and other assets |
107.5 | 161.4 | ||||||
| Future income tax benefits |
72.6 | 96.5 | ||||||
| Total current assets |
3,843.2 | 4,017.5 | ||||||
| Other assets: |
||||||||
| Goodwill and other intangible assets, net |
1,256.5 | 1,297.0 | ||||||
| Other assets |
271.4 | 305.5 | ||||||
| Total other assets |
1,527.9 | 1,602.5 | ||||||
| Property and equipment: |
||||||||
| Land, buildings, leasehold improvements and equipment |
642.4 | 669.8 | ||||||
| Less: accumulated depreciation and amortization |
446.0 | 446.7 | ||||||
| Net property and equipment |
196.4 | 223.1 | ||||||
| Total assets |
$ | 5,567.5 | $ | 5,843.1 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 685.4 | $ | 687.1 | ||||
| Employee compensation payable |
150.6 | 156.0 | ||||||
| Accrued liabilities |
435.4 | 505.7 | ||||||
| Accrued payroll taxes and insurance |
607.2 | 569.6 | ||||||
| Value added taxes payable |
441.9 | 457.8 | ||||||
| Short-term borrowings and current maturities of long-term debt |
260.0 | 225.7 | ||||||
| Total current liabilities |
2,580.5 | 2,601.9 | ||||||
| Other liabilities: |
||||||||
| Long-term debt |
475.0 | 676.1 | ||||||
| Other long-term liabilities |
365.4 | 391.1 | ||||||
| Total other liabilities |
840.4 | 1,067.2 | ||||||
| Shareholders’ equity: |
||||||||
| Common stock |
1.0 | 1.0 | ||||||
| Capital in excess of par value |
2,346.7 | 2,296.4 | ||||||
| Retained earnings |
269.9 | 51.0 | ||||||
| Accumulated other comprehensive income |
(11.0 | ) | 109.4 | |||||
| Treasury stock, at cost |
(460.0 | ) | (283.8 | ) | ||||
| Total shareholders’ equity |
2,146.6 | 2,174.0 | ||||||
| Total liabilities and shareholders’ equity |
$ | 5,567.5 | $ | 5,843.1 | ||||
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
| Year Ended December 31 |
||||||||
| 2005 |
2004 |
|||||||
| (Unaudited) | ||||||||
| Cash Flows from Operating Activities: |
||||||||
| Net earnings |
$ | 260.1 | $ | 245.7 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
92.9 | 86.5 | ||||||
| Amortization of discount on convertible debentures |
1.9 | 7.8 | ||||||
| Deferred income taxes |
50.0 | (8.8 | ) | |||||
| Provision for doubtful accounts |
22.9 | 27.3 | ||||||
| Other non-operating gains |
(2.6 | ) | (14.2 | ) | ||||
| Changes in operating assets and liabilities excluding the impact of acquisitions: |
||||||||
| Accounts receivable |
(350.4 | ) | (363.9 | ) | ||||
| Other assets |
(47.0 | ) | 41.5 | |||||
| Other liabilities |
244.6 | 165.5 | ||||||
| Cash provided by operating activities |
272.4 | 187.4 | ||||||
| Cash Flows from Investing Activities: |
||||||||
| Capital expenditures |
(77.6 | ) | (67.9 | ) | ||||
| Acquisitions of businesses, net of cash acquired |
(12.9 | ) | (117.3 | ) | ||||
| Proceeds from sale of an equity interest |
— | 29.8 | ||||||
| Proceeds from the sale of property and equipment |
4.8 | 5.6 | ||||||
| Cash used by investing activities |
(85.7 | ) | (149.8 | ) | ||||
| Cash Flows from Financing Activities: |
||||||||
| Net borrowings of short-term facilities and long-term debt |
169.5 | 5.7 | ||||||
| Cash paid to settle convertible debentures |
(206.6 | ) | — | |||||
| Proceeds from settlement of swap agreements |
50.7 | — | ||||||
| Proceeds from stock option and purchase plans |
29.7 | 60.0 | ||||||
| Repurchases of common stock |
(217.6 | ) | — | |||||
| Dividends paid |
(41.2 | ) | (27.1 | ) | ||||
| Cash (used) provided by financing activities |
(215.5 | ) | 38.6 | |||||
| Effect of exchange rate changes on cash |
(48.1 | ) | 29.4 | |||||
| Change in cash and cash equivalents |
(76.9 | ) | 105.6 | |||||
| Cash and cash equivalents, beginning of period |
531.8 | 426.2 | ||||||
| Cash and cash equivalents, end of period |
$ | 454.9 | $ | 531.8 | ||||
 Manpower Inc. 2005 4 th Quarter Results January 27, 2006 This presentation includes forward-looking statements which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Forward-looking statements can be identified by words such as “expect,” “plan,” “may,” “will,” and similar expressions. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s Annual Report on Form 10-K dated December 31, 2004, 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. Forward Looking Statement: Exhibit 99.2 |
 2 47% CC Consolidated Financial Highlights Consolidated Financial Highlights Revenue $4.1B Gross Margin 18.7% Operating Profit $132M OP Margin 3.2% EPS $ 1.01 1% 8% CC 10 bps 30 bps 38% 13% 21% 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. Q4 Highlights |
 3 Consolidated Financial Highlights Consolidated Financial Highlights Gross Profit Margin Change 18.69% 18.76% 16% 17% 18% 19% Q4 2004 EMEA Staffing Non-recurring Items Permanent Recruitment Mix - Right Q4 2005 - 0.11% + 0.15% - 0.34% + 0.23% |
 4 Q4 Financial Highlights 3% OUP Margin 4.3% 110 bps Revenue $534M OUP $23M United States Segment United States Segment 38% 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. |
 5 Q4 Financial Highlights 2% 7% CC OUP Margin 3.4% 50 bps Revenue $1.4B OUP $47M France Segment France Segment 14% 6% CC |
 6 Q4 Financial Highlights 2% 11% CC OUP Margin 3.7% 80 bps Revenue $1.5B OUP $54M EMEA Segment EMEA Segment 30% 43% CC |
 7 21% 5% 16% 8% 6% -13% 10% 16% -7% 17% 26% 15% 10% 5% -2% 1% Other Holland Spain Germany Elan Italy UK - Manpower Nordics Revenue Growth - CC Revenue Growth 18% 17% 16% 12% 8% 7% 6% 16% % of Segment Revenue Q4 Revenue Growth YoY EMEA Segment EMEA Segment |
 8 Q4 Financial Highlights 7% OUP Margin 4.6% 820 bps Revenue $96M OUP $4M Jefferson Wells Segment Jefferson Wells Segment 66% |
 9 Q4 Financial Highlights 9% 5% CC OUP Margin 3.4% 380 bps Revenue $97M OUP $3M Right Management Segment Right Management Segment N/A |
 10 Q4 Financial Highlights 9% 12% CC OUP Margin 3.6% 150 bps Revenue $547M OUP $19M Other Operations Segment Other Operations Segment 87% 91% CC |
 11 29% -5% 32% -4% 6% 25% -3% 26% Other Australia/NZ Mexico Japan 32% Revenue Growth - CC Revenue Growth 37% 16% 15% Other Operations Segment Other Operations Segment % of Segment Revenue Q4 Revenue Growth YoY |
 12 Financial Highlights Financial Highlights |
 13 45% 39% 29% 22% 26% 26% 27% 0% 10% 20% 30% 40% 50% 60% 2002 2003 2004 Q1 Q2 Q3 Q4 2005 538 416 370 231 391 324 280 735 627 754 756 902 842 822 0 200 400 600 800 1,000 2002 2003 2004 Q1 Q2 Q3 Q4 2005 Total Debt $ in millions Net Debt Total Debt Total Debt to Total Capitalization Percent Balance Sheet Highlights Balance Sheet Highlights |
 14 (in millions) 2005 2004 Cash from Operations 273 $ 187 $ Capital Expenditures (78) (68) Free Cash Flow 195 119 Share Repurchases * (218) - Change in Debt (37) 6 Other (17) (19) Change in Cash (77) $ 106 $ Cash Flow Summary – Cash Flow Summary – Full Year Full Year * 5,300,000 shares |
 15 Revenue U.S. Up 5-7% France 1% (Up 6-8% CC) EMEA Up 4-6% (Up 11-13% CC) Jefferson Wells Right Down 7-9% (Down 3-5% CC) Other Up 7-9% (Up 10-12% CC) Total Up 2-4% (Up 8-10% CC) Gross Profit Margin 18.1 - 18.3% Operating Profit Margin 1.6 – 1.7% Tax Rate 36.5% EPS $.36 - $.39 (Negative $.03 Currency) First Quarter Outlook First Quarter Outlook Up 5-7% |
 Manpower Inc. 2005 4 th Quarter Results January 27, 2006 Questions Questions |