- Revenues of $4.4 billion (-7% as
reported, -5% constant currency)
- Continuation of challenging environment in North America and Europe during the quarter, solid demand in
Latin America and Asia-Pacific region
- Gross profit margin of 17.3% as reported, 17.5% as adjusted.
Staffing margins remained strong; permanent recruitment trends were
stable at lower levels
- Good management of SG&A (-6% as reported, -5% constant
currency year-over-year)
- $50 million of common stock
repurchased during the quarter
- Strong cash flow during the quarter
MILWAUKEE, April 18,
2024 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today
reported net earnings of $0.81 per
diluted share for the three months ended March 31, 2024 compared to net earnings of
$1.51 per diluted share in the prior
year period. Net earnings in the quarter were $39.7 million compared to net earnings of
$77.8 million a year earlier.
Revenues for the first quarter were $4.4
billion, a 7% decrease from the prior year period.
The quarter included run-off losses related to the
run-off Proservia Germany business and a minor loss for
Argentina related currency
translation losses1. These losses reduced earnings per
share by $0.13 in the first quarter
and reduced our gross profit margin by 20 basis points. Excluding
these losses, earnings per share was $0.94 per diluted share in the quarter
representing a decrease of 39% in constant
currency.2
Financial results in the quarter
were also
impacted by the U.S. dollar relative
to foreign currencies compared
to the prior year period. The first quarter
earnings per share guidance estimated a negative 2 cents foreign currency impact and the actual
impact was worse at a negative 4
cents. On a constant currency basis, revenues decreased 5%
compared to the prior year period, or decreased 6% as adjusted.
Jonas Prising, ManpowerGroup
Chairman & CEO, said, "Employers in North America and Europe remain cautious as they wait for signs
that the economic environment is on a sustainable path of
improvement. In some of those markets demand for staffing and
permanent recruitment stabilized at lower levels, while demand
across Latin America and Asia
Pacific Middle East remained solid. We continue to prioritize the
execution of our strategic initiatives and are accelerating sales
activities to drive profitable growth when demand trends
strengthen.
We anticipate diluted earnings per share in the second quarter
will be between $1.24 and
$1.34, which includes an estimated
unfavorable currency impact of 7
cents and excludes unfavorable operating losses for the
run-off Proservia Germany business estimated at 8 cents. Our guidance excludes any
restructuring costs and any Argentina related impact of non-cash currency
translation losses."
In conjunction with its first quarter earnings release,
ManpowerGroup will broadcast its conference call live over the
Internet on April 18, 2024 at
7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the
conference call, webcast details, presentation and recordings are
included within the Investor Relations section of
manpowergroup.com.
Supplemental financial information referenced in the conference
call can be found at http://investor.manpowergroup.com/.
About ManpowerGroup
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 70 countries and territories and has done so for 75 years. We
are recognized consistently for our diversity – as a best place to
work for Women, Inclusion, Equality, and Disability, and in 2024
ManpowerGroup was named one of the World's Most Ethical Companies
for the 15th time – all confirming our position as the
brand of choice for in-demand talent. For more information,
visit www.manpowergroup.com.
Forward-Looking Statements
This press release
contains statements, including statements regarding economic and
geopolitical uncertainty, trends in labor demand and the future
strengthening of such demand, financial outlook, including any
residual costs resulting from the wind-down of the Proservia
business in Germany and the
Company's strategic initiatives and technology investments 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 SEC, including
the information under the heading "Risk Factors" in its Annual
Report on Form 10-K for the year ended December 31, 2023, which information is
incorporated herein by reference.
The Company assumes no obligation to update or revise any
forward-looking statements. We reference certain non-GAAP financial
measures, which we believe provide useful information for
investors. We include a reconciliation of these measures, where
appropriate, to GAAP on the Investor Relations section of our
website at manpowergroup.com.
__________________________
|
1 Argentina
is required to be treated as a hyperinflationary economy and the
currency translation losses reflect the devaluation of the
Argentine peso during the quarter.
|
2 The prior
year period included restructuring costs which reduced earnings per
share by $0.10 which are also excluded when determining the year
over year trend.
|
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2024
|
2023
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$
4,403.3
|
$ 4,752.3
|
-7.3 %
|
-5.5 %
|
|
|
|
|
|
Cost of
services
|
3,639.6
|
3,889.2
|
-6.4 %
|
-4.4 %
|
|
|
|
|
|
Gross
profit
|
763.7
|
863.1
|
-11.5 %
|
-10.1 %
|
|
|
|
|
|
Selling and
administrative expenses
|
697.8
|
745.2
|
-6.4 %
|
-5.1 %
|
|
|
|
|
|
Operating
profit
|
65.9
|
117.9
|
-44.1 %
|
-41.7 %
|
|
|
|
|
|
Interest and other
expenses, net
|
8.4
|
7.5
|
12.2 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
57.5
|
110.4
|
-47.9 %
|
-45.3 %
|
|
|
|
|
|
Provision for income
taxes
|
17.8
|
32.6
|
-45.4 %
|
|
|
|
|
|
|
Net
earnings
|
$
39.7
|
$
77.8
|
-49.0 %
|
-46.4 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
0.82
|
$
1.53
|
-46.2 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
0.81
|
$
1.51
|
-46.2 %
|
-43.5 %
|
|
|
|
|
|
Weighted average shares
- basic
|
48.3
|
50.9
|
-5.1 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
48.9
|
51.6
|
-5.1 %
|
|
|
|
(a)
|
Revenues from services
include fees received from our franchise offices of $3.3 million
and 3.9 million for three months ended March 31, 2024 and 2023,
respectively. These fees are primarily based on revenues generated
by the franchise offices, which were $277.2 million and $250.2
million for the three months ended March 31, 2024 and 2023,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2024
|
2023(a)
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(b)
|
$
680.4
|
$
741.6
|
-8.3 %
|
-8.3 %
|
Other
Americas
|
356.0
|
388.6
|
-8.4 %
|
12.5 %
|
|
1,036.4
|
1,130.2
|
-8.3 %
|
-1.1 %
|
Southern
Europe:
|
|
|
|
|
France
|
1,119.3
|
1,169.3
|
-4.3 %
|
-5.4 %
|
Italy
|
404.3
|
422.2
|
-4.2 %
|
-5.4 %
|
Other Southern
Europe
|
457.7
|
476.4
|
-3.9 %
|
-3.3 %
|
|
1,981.3
|
2,067.9
|
-4.2 %
|
-4.9 %
|
|
|
|
|
|
Northern
Europe
|
870.3
|
967.6
|
-10.1 %
|
-12.1 %
|
APME
|
535.1
|
605.9
|
-11.7 %
|
-4.8 %
|
|
4,423.1
|
4,771.6
|
|
|
Intercompany
Eliminations
|
(19.8)
|
(19.3)
|
|
|
|
$
4,403.3
|
$
4,752.3
|
-7.3 %
|
-5.5 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
12.0
|
$
30.0
|
-60.2 %
|
-60.2 %
|
Other
Americas
|
14.1
|
18.6
|
-24.1 %
|
-15.2 %
|
|
26.1
|
48.6
|
-46.4 %
|
-43.0 %
|
Southern
Europe:
|
|
|
|
|
France
|
33.1
|
44.9
|
-26.3 %
|
-27.2 %
|
Italy
|
27.4
|
30.7
|
-10.7 %
|
-11.8 %
|
Other Southern
Europe
|
9.4
|
14.3
|
-34.0 %
|
-31.9 %
|
|
69.9
|
89.9
|
-22.2 %
|
-22.7 %
|
|
|
|
|
|
Northern
Europe
|
0.0
|
5.0
|
-99.9 %
|
-108.6 %
|
APME
|
19.9
|
21.1
|
-6.1 %
|
3.3 %
|
|
115.9
|
164.6
|
|
|
Corporate
expenses
|
(41.7)
|
(37.9)
|
|
|
Intangible asset
amortization expense
|
(8.3)
|
(8.8)
|
|
|
Operating profit
|
65.9
|
117.9
|
-44.1 %
|
-41.7 %
|
Interest and other
expenses, net (c)
|
(8.4)
|
(7.5)
|
|
|
Earnings before income taxes
|
$
57.5
|
$
110.4
|
|
|
|
|
(a)
|
Effective January 1,
2024, our segment reporting was realigned to include our Puerto
Rico business within Other Americas. Accordingly, our reportable
segment, United States, is now adjusted to exclude Puerto Rico. All
previously reported results have been restated to conform to
the current year presentation.
|
|
|
(b)
|
In the United States,
revenues from services include fees received from our franchise
offices of $2.4 million and $3.2 million for the three months ended
March 31, 2024 and 2023, respectively. These fees are primarily
based on revenues generated by the franchise offices, which
were $87.4 million and $99.3 million for the three months
ended March 31, 2024 and 2023, respectively.
|
|
|
(c)
|
The components of
interest and other expenses, net were:
|
|
|
2024
|
2023
|
Interest
expense
|
$
20.4
|
$
18.7
|
Interest
income
|
(8.1)
|
(8.1)
|
Foreign
exchange loss
|
2.4
|
3.1
|
Miscellaneous income
|
(6.3)
|
(6.2)
|
|
$
8.4
|
$
7.5
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
2024
|
|
2023
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
604.8
|
|
$ 581.3
|
Accounts
receivable, net
|
4,458.5
|
|
4,830.0
|
Prepaid expenses
and other assets
|
186.5
|
|
160.8
|
Total current
assets
|
5,249.8
|
|
5,572.1
|
|
|
|
|
Other
assets:
|
|
|
|
Goodwill
|
1,574.5
|
|
1,586.8
|
Intangible
assets, net
|
507.8
|
|
519.6
|
Operating lease
right-of-use assets
|
403.9
|
|
414.0
|
Other
assets
|
628.4
|
|
607.8
|
Total other
assets
|
3,114.6
|
|
3,128.2
|
|
|
|
|
Property and
equipment:
|
|
|
|
Land, buildings,
leasehold improvements and equipment
|
518.3
|
|
526.5
|
Less:
accumulated depreciation and amortization
|
394.1
|
|
396.6
|
Net property and
equipment
|
124.2
|
|
129.9
|
Total assets
|
$ 8,488.6
|
|
$
8,830.2
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 2,614.7
|
|
$
2,723.0
|
Employee
compensation payable
|
215.4
|
|
243.1
|
Accrued
liabilities
|
604.3
|
|
693.0
|
Accrued payroll
taxes and insurance
|
668.4
|
|
695.8
|
Value added
taxes payable
|
385.7
|
|
432.7
|
Short-term
borrowings and current maturities of long-term debt
|
15.6
|
|
12.1
|
Total current
liabilities
|
4,504.1
|
|
4,799.7
|
|
|
|
|
Other
liabilities:
|
|
|
|
Long-term
debt
|
968.9
|
|
990.5
|
Long-term
operating lease liability
|
315.5
|
|
323.2
|
Other long-term
liabilities
|
512.4
|
|
482.7
|
Total other
liabilities
|
1,796.8
|
|
1,796.4
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
ManpowerGroup
shareholders' equity
|
|
|
|
Common stock
|
1.2
|
|
1.2
|
Capital in excess of par value
|
3,518.7
|
|
3,514.9
|
Retained earnings
|
3,852.7
|
|
3,813.0
|
Accumulated other comprehensive loss
|
(495.5)
|
|
(466.0)
|
Treasury stock, at cost
|
(4,700.4)
|
|
(4,639.8)
|
Total
ManpowerGroup shareholders' equity
|
2,176.7
|
|
2,223.3
|
Noncontrolling
interests
|
11.0
|
|
10.8
|
Total shareholders' equity
|
2,187.7
|
|
2,234.1
|
Total liabilities and shareholders' equity
|
$ 8,488.6
|
|
$
8,830.2
|
ManpowerGroup
|
Consolidated Statements
of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
earnings
|
$ 39.7
|
|
$ 77.8
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
21.6
|
|
21.0
|
Deferred income
taxes
|
7.5
|
|
18.2
|
Provision for doubtful
accounts
|
2.6
|
|
0.1
|
Share-based
compensation
|
7.5
|
|
5.1
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
283.9
|
|
398.0
|
Other
assets
|
(62.5)
|
|
(37.3)
|
Other
liabilities
|
(184.3)
|
|
(358.3)
|
Cash provided by operating activities
|
116.0
|
|
124.6
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(11.8)
|
|
(13.2)
|
Proceeds from
the sale of property and equipment
|
2.1
|
|
-
|
Cash used in investing activities
|
(9.7)
|
|
(13.2)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Net change in
short-term borrowings
|
3.7
|
|
(10.7)
|
Proceeds from
long-term debt
|
-
|
|
0.2
|
Repayments of
long-term debt
|
(0.2)
|
|
(0.2)
|
Payments of
contingent consideration for acquisitions
|
(1.1)
|
|
-
|
Proceeds from
share-based awards
|
0.4
|
|
1.7
|
Other
share-based award transactions
|
(10.3)
|
|
(9.8)
|
Repurchases of
common stock
|
(50.0)
|
|
(30.0)
|
Cash used in financing activities
|
(57.5)
|
|
(48.8)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(25.3)
|
|
5.1
|
Change in cash and cash
equivalents
|
23.5
|
|
67.7
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
581.3
|
|
639.0
|
Cash and cash
equivalents, end of period
|
$ 604.8
|
|
$ 706.7
|
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SOURCE ManpowerGroup