- Revenues of $4.9 billion (-4% as
reported, -3% constant currency)
- Challenging operating environment in the U.S. and Europe contributed to revenue declines in
Manpower, Experis and Talent Solutions
- Gross profit margin of 17.8%. Staffing margins consistent with
year earlier period; permanent recruitment demand weaker
- $50 million of common stock
repurchased during the quarter
- Decision taken to wind down Proservia managed services business
in Germany
MILWAUKEE, July 20,
2023 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today
reported net earnings of $1.29 per
diluted share for the three months ended June 30, 2023 compared to $2.29 per diluted share in the prior year
period. Net earnings in the quarter were $65.2 million compared to $122.2 million a year earlier. Revenues for the
second quarter were $4.9 billion, a
4% decrease from the prior year period.
The current year quarter included restructuring costs and
Argentina related non-cash
currency translation losses which reduced earnings per share by
$0.29 in the current quarter.
Excluding these costs, earnings per share was $1.58 per diluted share in the quarter
representing a decrease of 31% in constant
currency.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.
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
4 cent negative impact to earnings
per share in the quarter compared to the prior year. On a constant
currency basis, revenues decreased 3% compared to the prior year
period. The foreign currency impact to earnings per share
represented an additional 1 cent
negative impact than was anticipated in our second quarter
guidance.
Jonas Prising, ManpowerGroup
Chairman & CEO, said, "Our second quarter results reflect a
challenging operating environment for recruitment and resourcing in
the U.S. and Europe. However, we
continued to see demand in certain segments within these markets
and ongoing strength in Latin
America and Asia Pacific Middle East. We are
prioritizing improved productivity and the advancement of our
strategic initiatives to position us well for strong performance
when market conditions improve.
As we start the third quarter, we have made the decision
to wind down our Proservia managed services business in
Germany. Although a difficult
decision, this outsourcing business is not part of our go-forward
strategy and will improve the profitability of our Northern Europe business going forward.
We anticipate diluted earnings per share in the third quarter
will be between $1.32 and
$1.42, which includes an estimated
favorable currency impact of 8
cents. Our guidance excludes expected restructuring
costs and the aforementioned Argentina related impact of non-cash currency
translation losses."
Net earnings for the six months ended June 30, 2023 were $143.0
million, or net earnings of $2.80 per diluted share compared to net earnings
of $213.8 million, or net earnings of
$3.97 per diluted share in the prior
year, respectively. The current year to date period included
restructuring costs and the aforementioned Argentina related non-cash currency
translation losses which reduced earnings per share by 39 cents. Excluding the net impact of these
charges, earnings per share for the six-month period was
$3.19 per diluted share representing
a decrease of 20% in constant currency.2 Revenues
for the six-month period were $9.6
billion, representing a decrease of 6% compared to the prior
year or a decrease of 3% in constant currency. Earnings per share
for the six-month period were negatively impacted by 18 cents due to changes in foreign currencies
compared to the prior year.
In conjunction with its second quarter earnings release,
ManpowerGroup will broadcast its conference call live over the
Internet on July 20, 2023 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/.
____________________
|
1 The prior
year period included integration costs from the U.S. Experis
acquisition which reduced earnings per share by $0.04 which are
also excluded when determining the year over year trend.
|
2 The prior
year period included integration costs from the U.S. Experis
acquisition and the net loss related to the sale of our Russia
business which reduced earnings per share by $0.24 which are also
excluded when determining the year over year trend.
|
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 2023 ManpowerGroup was named one of the
World's Most Ethical Companies for the 14th 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, financial outlook,
labor demand, the outlook for our business in key countries, the
Company's strategic initiatives and technology investments, and the
positioning of future growth for our 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 SEC, including
the information under the heading "Risk Factors" in its Annual
Report on Form 10-K for the year ended December 31, 2022, 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.
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
|
% Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$
4,856.1
|
$ 5,074.1
|
-4.3 %
|
-3.5 %
|
|
|
|
|
|
Cost of
services
|
3,993.8
|
4,152.9
|
-3.8 %
|
-3.0 %
|
|
|
|
|
|
Gross
profit
|
862.3
|
921.2
|
-6.4 %
|
-5.7 %
|
|
|
|
|
|
Selling and
administrative expenses
|
754.7
|
740.5
|
1.9 %
|
2.5 %
|
|
|
|
|
|
Operating
profit
|
107.6
|
180.7
|
-40.4 %
|
-39.1 %
|
|
|
|
|
|
Interest and other
expenses, net
|
11.8
|
6.7
|
76.7 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
95.8
|
174.0
|
-45.0 %
|
-43.4 %
|
|
|
|
|
|
Provision for income
taxes
|
30.6
|
51.8
|
-41.0 %
|
|
|
|
|
|
|
Net
earnings
|
$
65.2
|
$
122.2
|
-46.6 %
|
-45.2 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
1.30
|
$
2.32
|
-43.9 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
1.29
|
$
2.29
|
-43.8 %
|
-42.2 %
|
|
|
|
|
|
Weighted average shares
- basic
|
50.2
|
52.7
|
-4.9 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
50.7
|
53.4
|
-5.1 %
|
|
|
|
|
|
|
(a) Revenues from
services include fees received from our franchise offices of $3.3
million and $3.9 million for
the three months ended June 30, 2023
and 2022, respectively. These fees are primarily based on
revenues
generated by the franchise offices,
which were $250.6 million and $275.6 million for the three
months
ended June 30, 2023 and 2022,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
|
% Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$
736.7
|
$
903.9
|
-18.5 %
|
-18.5 %
|
Other
Americas
|
362.0
|
358.8
|
0.9 %
|
14.0 %
|
|
1,098.7
|
1,262.7
|
-13.0 %
|
-9.3 %
|
Southern
Europe:
|
|
|
|
|
France
|
1,278.2
|
1,238.2
|
3.2 %
|
0.9 %
|
Italy
|
457.8
|
454.3
|
0.8 %
|
-1.5 %
|
Other Southern
Europe
|
490.9
|
508.9
|
-3.5 %
|
-4.7 %
|
|
2,226.9
|
2,201.4
|
1.2 %
|
-0.9 %
|
|
|
|
|
|
Northern
Europe
|
952.5
|
1,027.1
|
-7.3 %
|
-6.3 %
|
APME
|
599.4
|
603.7
|
-0.7 %
|
4.2 %
|
|
4,877.5
|
5,094.9
|
|
|
Intercompany
Eliminations
|
(21.4)
|
(20.8)
|
|
|
|
$
4,856.1
|
$
5,074.1
|
-4.3 %
|
-3.5 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
26.2
|
$
64.7
|
-59.5 %
|
-59.5 %
|
Other
Americas
|
17.0
|
16.2
|
5.0 %
|
22.8 %
|
|
43.2
|
80.9
|
-46.6 %
|
-43.1 %
|
Southern
Europe:
|
|
|
|
|
France
|
49.5
|
62.3
|
-20.5 %
|
-22.4 %
|
Italy
|
36.3
|
35.5
|
2.1 %
|
-0.3 %
|
Other Southern
Europe
|
6.8
|
13.9
|
-50.4 %
|
-48.7 %
|
|
92.6
|
111.7
|
-17.0 %
|
-18.6 %
|
|
|
|
|
|
Northern
Europe
|
(9.7)
|
10.8
|
-188.9 %
|
-190.4 %
|
APME
|
25.7
|
22.5
|
13.9 %
|
20.0 %
|
|
151.8
|
225.9
|
|
|
Corporate
expenses
|
(35.5)
|
(35.8)
|
|
|
Intangible asset
amortization expense
|
(8.7)
|
(9.4)
|
|
|
Operating profit
|
107.6
|
180.7
|
-40.4 %
|
-39.1 %
|
Interest and other
expenses, net (b)
|
(11.8)
|
(6.7)
|
|
|
Earnings before income taxes
|
$
95.8
|
$
174.0
|
|
|
|
|
|
|
|
(a) In the United
States, revenues from services include fees received from our
franchise offices of $2.6 million and $3.1
million for the three months
ended June 30, 2023 and 2022, respectively. These fees are
primarily based on
revenues generated by the
franchise offices, which were $100.8 million and $128.1 million for
the three months ended
June 30, 2023 and 2022,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses, net were:
|
|
|
|
2023
|
2022
|
|
|
Interest
expense
|
$
20.0
|
$
10.6
|
|
|
Interest
income
|
(8.4)
|
(2.8)
|
|
|
Foreign
exchange loss
|
5.1
|
3.3
|
|
|
Miscellaneous loss (income)
|
(4.9)
|
(4.4)
|
|
|
|
$
11.8
|
$
6.7
|
|
|
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Six Months Ended June 30
|
|
|
|
% Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$ 9,608.4
|
$
10,217.4
|
-6.0 %
|
-2.8 %
|
|
|
|
|
|
Cost of
services
|
7,883.0
|
8,399.1
|
-6.1 %
|
-2.9 %
|
|
|
|
|
|
Gross
profit
|
1,725.4
|
1,818.3
|
-5.1 %
|
-2.2 %
|
|
|
|
|
|
Selling and
administrative expenses
|
1,499.9
|
1,498.9
|
0.1 %
|
2.7 %
|
|
|
|
|
|
Operating
profit
|
225.5
|
319.4
|
-29.4 %
|
-25.4 %
|
|
|
|
|
|
Interest and other
expenses, net
|
19.3
|
9.4
|
106.1 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
206.2
|
310.0
|
-33.5 %
|
-29.4 %
|
|
|
|
|
|
Provision for income
taxes
|
63.2
|
96.2
|
-34.3 %
|
|
|
|
|
|
|
Net
earnings
|
$
143.0
|
$
213.8
|
-33.1 %
|
-29.0 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
2.84
|
$
4.02
|
-29.5 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
2.80
|
$
3.97
|
-29.4 %
|
-25.1 %
|
|
|
|
|
|
Weighted average shares
- basic
|
50.4
|
53.2
|
-5.1 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
51.0
|
53.8
|
-5.3 %
|
|
|
|
|
|
|
(a) Revenues from
services include fees received from our franchise offices of $7.2
million and $7.5 million
for the six months ended June 30,
2023 and 2022, respectively. These fees are primarily based on
revenues generated by the franchise
offices, which were $500.8 million and $540.8 million for the six
months
ended June 30, 2023 and 2022,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Six Months Ended June 30
|
|
|
|
% Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$
1,506.7
|
$
1,793.3
|
-16.0 %
|
-16.0 %
|
Other
Americas
|
722.2
|
720.6
|
0.2 %
|
12.9 %
|
|
2,228.9
|
2,513.9
|
-11.3 %
|
-7.7 %
|
Southern
Europe:
|
|
|
|
|
France
|
2,447.5
|
2,430.6
|
0.7 %
|
1.7 %
|
Italy
|
880.0
|
899.3
|
-2.1 %
|
-1.2 %
|
Other Southern
Europe
|
967.3
|
1,065.4
|
-9.2 %
|
-7.6 %
|
|
4,294.8
|
4,395.3
|
-2.3 %
|
-1.2 %
|
|
|
|
|
|
Northern
Europe
|
1,920.1
|
2,121.6
|
-9.5 %
|
-5.1 %
|
APME
|
1,205.3
|
1,221.9
|
-1.4 %
|
5.8 %
|
|
9,649.1
|
10,252.7
|
|
|
Intercompany
Eliminations
|
(40.7)
|
(35.3)
|
|
|
|
$
9,608.4
|
$
10,217.4
|
-6.0 %
|
-2.8 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
57.3
|
$
123.0
|
-53.4 %
|
-53.4 %
|
Other
Americas
|
34.5
|
30.7
|
12.6 %
|
29.6 %
|
|
91.8
|
153.7
|
-40.3 %
|
-36.9 %
|
Southern
Europe:
|
|
|
|
|
France
|
94.4
|
111.9
|
-15.6 %
|
-15.0 %
|
Italy
|
67.0
|
64.5
|
3.8 %
|
4.6 %
|
Other Southern
Europe
|
21.1
|
30.5
|
-30.7 %
|
-27.1 %
|
|
182.5
|
206.9
|
-11.8 %
|
-10.6 %
|
|
|
|
|
|
Northern
Europe
|
(4.7)
|
14.1
|
-133.0 %
|
-121.7 %
|
APME
|
46.8
|
41.5
|
12.8 %
|
21.8 %
|
|
316.4
|
416.2
|
|
|
Corporate
expenses
|
(73.4)
|
(77.8)
|
|
|
Intangible asset
amortization expense
|
(17.5)
|
(19.0)
|
|
|
Operating profit
|
225.5
|
319.4
|
-29.4 %
|
-25.4 %
|
Interest and other
expenses, net (b)
|
(19.3)
|
(9.4)
|
|
|
Earnings before income taxes
|
$
206.2
|
$
310.0
|
|
|
|
|
|
|
|
(a) In the United
States, revenues from services include fees received from our
franchise offices of $5.8 million and $6.0 million
for the six months ended June 30,
2023 and 2022, respectively. These fees are primarily based on
revenues generated
by the franchise offices, which were
$200.1 million and $238.9 million for the six months ended June 30,
2023 and 2022,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses, net were:
|
|
|
|
|
2023
|
2022
|
|
|
Interest
expense
|
$
38.7
|
$
21.0
|
|
|
Interest
income
|
(16.5)
|
(5.6)
|
|
|
Foreign
exchange loss
|
8.2
|
5.1
|
|
|
Miscellaneous income
|
(11.1)
|
(11.1)
|
|
|
|
$
19.3
|
$
9.4
|
|
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Jun. 30,
|
|
Dec. 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$
407.6
|
|
$ 639.0
|
Accounts
receivable, net
|
4,995.2
|
|
5,137.4
|
Prepaid expenses
and other assets
|
188.1
|
|
158.0
|
Total current
assets
|
5,590.9
|
|
5,934.4
|
|
|
|
|
Other assets:
|
|
|
|
Goodwill
|
1,635.2
|
|
1,628.1
|
Intangible
assets, net
|
533.8
|
|
549.5
|
Operating lease
right-of-use asset
|
404.7
|
|
365.7
|
Other
assets
|
588.3
|
|
540.5
|
Total other
assets
|
3,162.0
|
|
3,083.8
|
|
|
|
|
Property and equipment:
|
|
|
|
Land, buildings,
leasehold improvements and equipment
|
516.8
|
|
584.9
|
Less:
accumulated depreciation and amortization
|
400.5
|
|
472.7
|
Net property and
equipment
|
116.3
|
|
112.2
|
Total assets
|
$ 8,869.2
|
|
$
9,130.4
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts
payable
|
$ 2,727.6
|
|
$
2,831.4
|
Employee
compensation payable
|
204.9
|
|
271.7
|
Accrued
liabilities
|
545.4
|
|
572.6
|
Accrued payroll
taxes and insurance
|
686.3
|
|
746.7
|
Value added
taxes payable
|
429.9
|
|
462.7
|
Short-term
borrowings and current maturities of long-term debt
|
22.3
|
|
26.6
|
Total current
liabilities
|
4,616.4
|
|
4,911.7
|
|
|
|
|
Other liabilities:
|
|
|
|
Long-term
debt
|
978.8
|
|
959.9
|
Long-term
operating lease liability
|
308.7
|
|
266.6
|
Other long-term
liabilities
|
515.5
|
|
534.1
|
Total other
liabilities
|
1,803.0
|
|
1,760.6
|
|
|
|
|
Shareholders' equity:
|
|
|
|
ManpowerGroup
shareholders' equity
|
|
|
|
Common stock
|
1.2
|
|
1.2
|
Capital in excess of par value
|
3,497.3
|
|
3,484.2
|
Retained earnings
|
3,938.4
|
|
3,868.5
|
Accumulated other comprehensive loss
|
(459.5)
|
|
(458.7)
|
Treasury stock, at cost
|
(4,538.2)
|
|
(4,447.9)
|
Total
ManpowerGroup shareholders' equity
|
2,439.2
|
|
2,447.3
|
Noncontrolling
interests
|
10.6
|
|
10.8
|
Total shareholders' equity
|
2,449.8
|
|
2,458.1
|
Total liabilities and shareholders' equity
|
$ 8,869.2
|
|
$
9,130.4
|
ManpowerGroup
|
Consolidated Statements
of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Six Months Ended
|
|
June 30,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Cash Flows from Operating
Activities:
|
|
|
|
Net
earnings
|
$ 143.0
|
|
$
213.8
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
42.6
|
|
42.5
|
Loss on sale of a
subsidiary, net
|
-
|
|
8.0
|
Deferred income
taxes
|
14.3
|
|
2.8
|
Provision for doubtful
accounts
|
2.9
|
|
6.1
|
Share-based
compensation
|
12.0
|
|
21.6
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
186.3
|
|
(218.3)
|
Other
assets
|
(63.2)
|
|
(18.0)
|
Other
liabilities
|
(369.1)
|
|
(37.2)
|
Cash provided by (used in) operating activities
|
(31.2)
|
|
21.3
|
|
|
|
|
Cash Flows from Investing
Activities:
|
|
|
|
Capital
expenditures
|
(34.6)
|
|
(41.7)
|
Proceeds from
the sale of subsidiaries and property and equipment
|
0.1
|
|
1.0
|
Cash used in investing activities
|
(34.5)
|
|
(40.7)
|
|
|
|
|
Cash Flows from Financing
Activities:
|
|
|
|
Net change in
short-term borrowings
|
(9.5)
|
|
(3.9)
|
Net proceeds
(repayments) of revolving debt facility
|
4.0
|
|
(25.0)
|
Proceeds from
long-term debt
|
0.4
|
|
416.1
|
Repayments of
long-term debt
|
(0.5)
|
|
(2.5)
|
Payments for
debt issuance costs
|
-
|
|
(1.5)
|
Proceeds from
derivative settlement
|
-
|
|
2.0
|
Payments of
contingent consideration for acquisitions
|
-
|
|
(1.4)
|
Proceeds from
share-based awards
|
1.7
|
|
0.3
|
Payments to
noncontrolling interests
|
(0.6)
|
|
(1.0)
|
Other
share-based award transactions
|
(9.8)
|
|
(8.1)
|
Repurchases of
common stock
|
(79.9)
|
|
(160.0)
|
Dividends
paid
|
(73.1)
|
|
(71.2)
|
Cash provided by (used in) financing activities
|
(167.3)
|
|
143.8
|
|
|
|
|
Effect of exchange rate
changes on cash
|
1.6
|
|
(86.0)
|
Change in cash and cash
equivalents
|
(231.4)
|
|
38.4
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
639.0
|
|
847.8
|
Cash and cash
equivalents, end of period
|
$ 407.6
|
|
$
886.2
|
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SOURCE ManpowerGroup