- Revenues of $4.7 billion (-3% as
reported, -5% constant currency)
- Challenging operating environment in North America and Europe primary cause for revenue decline
- Gross profit margin of 17.6%. Staffing margins remained
resilient; permanent recruitment demand weakened
- Cost reductions and restructuring actions align operations to
weaker market demand
- $50 million of common stock
repurchased during the quarter
- Strong Free Cash Flow during the quarter of $245 million
MILWAUKEE,
Oct. 19,
2023 /PRNewswire/ -- ManpowerGroup (NYSE: MAN)
today reported net earnings of $0.60
per diluted share for the three months ended September 30, 2023 compared to $2.13 per diluted share in the prior year period.
Net earnings in the quarter were $30.3
million compared to $111.3
million a year earlier. Revenues for the third quarter were
$4.7 billion, a 3% decrease from the
prior year period.
The current year quarter included restructuring costs, a small
loss from the sale of our Philippines business and Argentina related non-cash currency
translation losses which reduced earnings per share by $0.78 in the current quarter. Excluding these
costs, earnings per share was $1.38
per diluted share in the quarter representing a decrease of 39% 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 weaker
U.S. dollar relative to foreign
currencies compared
to the prior year period, resulting in a
4 cent positive impact to earnings
per share in the quarter compared to the prior year. The foreign
currency positive impact to earnings per share was 4 cents lower than the impact anticipated in our
third quarter guidance. On a constant currency basis, revenues
decreased 5% compared to the prior year period.
Jonas Prising, ManpowerGroup
Chairman & CEO, said, "Our third quarter results reflect the
challenging operating environment for recruitment and resourcing in
North America and Europe. We continued to see solid demand
across Latin America and Asia
Pacific Middle East. While the current operating environment is
difficult for our industry, we are confident in our ability to
adjust to the existing reality while being ready to pivot quickly
when the situation improves. We executed various additional cost
actions during the third quarter and our experienced management
team continues to drive our key Diversification, Digitization
and Innovation initiatives which are strengthening
ManpowerGroup for the future.
We anticipate diluted earnings per share in the fourth quarter
will be between $1.17 and
$1.27, which includes an estimated
unfavorable currency impact of 1
cent. Our guidance excludes expected restructuring costs and
any Argentina related impact of
non-cash currency translation losses."
Net earnings for the nine months ended September 30, 2023 were $173.3 million, or net earnings of $3.42 per diluted share compared to net earnings
of $325.1 million, or net earnings of
$6.10 per diluted share in the prior
year, respectively. The current year to date period included
restructuring costs, a small loss from the sale of our Philippines business and an Argentina related non-cash currency
translation losses which reduced earnings per share by $1.16. Excluding the net impact of these charges,
earnings per share for the nine-month period was $4.58 per diluted share representing a decrease
of 27% in constant currency.2 Revenues for the
nine-month period were $14.3 billion,
representing a decrease of 5% compared to the prior year or a
decrease of 4% in constant currency. Earnings per share for the
nine-month period were negatively impacted by 14 cents due to changes in foreign currencies
compared to the prior year.
In conjunction with its third quarter earnings release,
ManpowerGroup will broadcast its conference call live over the
Internet on October 19, 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/.
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.
1 The prior year period included integration
costs from the U.S. Experis acquisition which reduced earnings per
share by $0.08 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 $0.33 which are also excluded when determining
the year over year trend.
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$
4,675.6
|
$ 4,800.9
|
-2.6 %
|
-5.4 %
|
|
|
|
|
|
Cost of
services
|
3,853.7
|
3,922.4
|
-1.8 %
|
-4.6 %
|
|
|
|
|
|
Gross
profit
|
821.9
|
878.5
|
-6.4 %
|
-9.0 %
|
|
|
|
|
|
Selling and
administrative expenses
|
752.1
|
717.0
|
4.9 %
|
2.0 %
|
|
|
|
|
|
Operating
profit
|
69.8
|
161.5
|
-56.8 %
|
-57.9 %
|
|
|
|
|
|
Interest and other
expenses, net
|
15.1
|
4.7
|
215.6 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
54.7
|
156.8
|
-65.1 %
|
-65.8 %
|
|
|
|
|
|
Provision for income
taxes
|
24.4
|
45.5
|
-46.2 %
|
|
|
|
|
|
|
Net
earnings
|
$
30.3
|
$
111.3
|
-72.8 %
|
-73.3 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
0.61
|
$
2.15
|
-71.6 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
0.60
|
$
2.13
|
-71.7 %
|
-72.2 %
|
|
|
|
|
|
Weighted average shares
- basic
|
49.5
|
51.7
|
-4.1 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
50.1
|
52.3
|
-4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
(a) Revenues from
services include fees received from our franchise offices of $3.8
million and $4.4 million for
the three months ended September 30,
2023 and 2022, respectively. These fees are primarily based on
revenues
generated by the franchise offices,
which were $243.5 million and $264.0 million for the three
months
ended September 30, 2023 and 2022,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$
752.6
|
$
886.6
|
-15.1 %
|
-15.1 %
|
Other
Americas
|
358.7
|
353.2
|
1.6 %
|
13.3 %
|
|
1,111.3
|
1,239.8
|
-10.4 %
|
-7.0 %
|
Southern
Europe:
|
|
|
|
|
France
|
1,209.9
|
1,159.5
|
4.4 %
|
-3.4 %
|
Italy
|
413.7
|
395.1
|
4.7 %
|
-3.1 %
|
Other Southern
Europe
|
485.1
|
485.2
|
0.0 %
|
-3.7 %
|
|
2,108.7
|
2,039.8
|
3.4 %
|
-3.4 %
|
|
|
|
|
|
Northern
Europe
|
914.2
|
954.1
|
-4.2 %
|
-9.5 %
|
APME
|
564.8
|
586.9
|
-3.8 %
|
-1.6 %
|
|
4,699.0
|
4,820.6
|
|
|
Intercompany
Eliminations
|
(23.4)
|
(19.7)
|
|
|
|
$
4,675.6
|
$
4,800.9
|
-2.6 %
|
-5.4 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
25.4
|
$
54.7
|
-53.5 %
|
-53.5 %
|
Other
Americas
|
12.5
|
16.4
|
-24.2 %
|
-14.0 %
|
|
37.9
|
71.1
|
-46.7 %
|
-44.4 %
|
Southern
Europe:
|
|
|
|
|
France
|
47.9
|
56.6
|
-15.5 %
|
-21.8 %
|
Italy
|
27.0
|
29.0
|
-6.5 %
|
-13.5 %
|
Other Southern
Europe
|
9.5
|
14.7
|
-36.1 %
|
-35.8 %
|
|
84.4
|
100.3
|
-15.9 %
|
-21.5 %
|
|
|
|
|
|
Northern
Europe
|
(30.6)
|
12.8
|
-341.0 %
|
-332.1 %
|
APME
|
24.2
|
23.4
|
3.4 %
|
7.3 %
|
|
115.9
|
207.6
|
|
|
Corporate
expenses
|
(37.4)
|
(37.0)
|
|
|
Intangible asset
amortization expense
|
(8.7)
|
(9.1)
|
|
|
Operating profit
|
69.8
|
161.5
|
-56.8 %
|
-57.9 %
|
Interest and other
expenses, net (b)
|
(15.1)
|
(4.7)
|
|
|
Earnings before income taxes
|
$
54.7
|
$
156.8
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the United
States, revenues from services include fees received from our
franchise offices of $3.1 million and $3.7
million for the three months
ended September 30, 2023 and 2022, respectively. These fees are
primarily based on
revenues generated by the
franchise offices, which were $98.6 million and $121.9 million for
the three months ended
September 30, 2023 and 2022,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses, net were:
|
|
|
|
2023
|
2022
|
|
|
Interest
expense
|
$
21.0
|
$
10.7
|
|
|
Interest
income
|
(8.0)
|
(4.4)
|
|
|
Foreign
exchange loss
|
6.0
|
3.8
|
|
|
Miscellaneous income
|
(3.9)
|
(5.4)
|
|
|
|
$
15.1
|
$
4.7
|
|
|
|
|
|
|
|
ManpowerGroup
|
Results of
Operations
|
(In millions, except
per share data)
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from services
(a)
|
$
14,284.0
|
$
15,018.3
|
-4.9 %
|
-3.6 %
|
|
|
|
|
|
Cost of
services
|
11,736.7
|
12,321.5
|
-4.7 %
|
-3.5 %
|
|
|
|
|
|
Gross
profit
|
2,547.3
|
2,696.8
|
-5.5 %
|
-4.4 %
|
|
|
|
|
|
Selling and
administrative expenses
|
2,252.0
|
2,215.9
|
1.6 %
|
2.5 %
|
|
|
|
|
|
Operating
profit
|
295.3
|
480.9
|
-38.6 %
|
-36.3 %
|
|
|
|
|
|
Interest and other
expenses, net
|
34.4
|
14.1
|
143.1 %
|
|
|
|
|
|
|
Earnings before
income taxes
|
260.9
|
466.8
|
-44.1 %
|
-41.6 %
|
|
|
|
|
|
Provision for income
taxes
|
87.6
|
141.7
|
-38.2 %
|
|
|
|
|
|
|
Net
earnings
|
$
173.3
|
$
325.1
|
-46.7 %
|
-44.3 %
|
|
|
|
|
|
Net earnings per share
- basic
|
$
3.46
|
$
6.18
|
-44.0 %
|
|
|
|
|
|
|
Net earnings per share
- diluted
|
$
3.42
|
$
6.10
|
-44.0 %
|
-41.5 %
|
|
|
|
|
|
Weighted average shares
- basic
|
50.1
|
52.6
|
-4.8 %
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
50.7
|
53.3
|
-4.9 %
|
|
|
|
|
|
|
|
|
|
|
|
(a) Revenues from
services include fees received from our franchise offices of $11.0
million and $11.9 million
for the nine months ended September
30, 2023 and 2022, respectively. These fees are primarily based
on
revenues generated by the franchise
offices, which were $744.3 million and $804.8 million for the nine
months
ended September 30, 2023 and 2022,
respectively.
|
ManpowerGroup
|
Operating Unit
Results
|
(In
millions)
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
%
Variance
|
|
|
|
Amount
|
Constant
|
|
2023
|
2022
|
Reported
|
Currency
|
|
(Unaudited)
|
Revenues from
Services:
|
|
|
|
|
Americas:
|
|
|
|
|
United States
(a)
|
$
2,259.3
|
$
2,679.9
|
-15.7 %
|
-15.7 %
|
Other
Americas
|
1,080.9
|
1,073.8
|
0.7 %
|
13.0 %
|
|
3,340.2
|
3,753.7
|
-11.0 %
|
-7.5 %
|
Southern
Europe:
|
|
|
|
|
France
|
3,657.4
|
3,590.1
|
1.9 %
|
0.0 %
|
Italy
|
1,293.7
|
1,294.4
|
-0.1 %
|
-1.8 %
|
Other Southern
Europe
|
1,452.4
|
1,550.6
|
-6.3 %
|
-6.4 %
|
|
6,403.5
|
6,435.1
|
-0.5 %
|
-1.9 %
|
|
|
|
|
|
Northern
Europe
|
2,834.3
|
3,075.7
|
-7.8 %
|
-6.5 %
|
APME
|
1,770.1
|
1,808.8
|
-2.1 %
|
3.4 %
|
|
14,348.1
|
15,073.3
|
|
|
Intercompany
Eliminations
|
(64.1)
|
(55.0)
|
|
|
|
$
14,284.0
|
$
15,018.3
|
-4.9 %
|
-3.6 %
|
|
|
|
|
|
Operating Unit
Profit:
|
|
|
|
|
Americas:
|
|
|
|
|
United
States
|
$
82.7
|
$
177.7
|
-53.5 %
|
-53.5 %
|
Other
Americas
|
47.0
|
47.1
|
-0.2 %
|
14.4 %
|
|
129.7
|
224.8
|
-42.3 %
|
-39.3 %
|
Southern
Europe:
|
|
|
|
|
France
|
142.3
|
168.5
|
-15.6 %
|
-17.3 %
|
Italy
|
94.0
|
93.5
|
0.6 %
|
-1.0 %
|
Other Southern
Europe
|
30.6
|
45.2
|
-32.5 %
|
-29.9 %
|
|
266.9
|
307.2
|
-13.1 %
|
-14.2 %
|
|
|
|
|
|
Northern
Europe
|
(35.3)
|
26.9
|
-231.5 %
|
-221.3 %
|
APME
|
71.0
|
64.9
|
9.4 %
|
16.5 %
|
|
432.3
|
623.8
|
|
|
Corporate
expenses
|
(110.8)
|
(114.8)
|
|
|
Intangible asset
amortization expense
|
(26.2)
|
(28.1)
|
|
|
Operating profit
|
295.3
|
480.9
|
-38.6 %
|
-36.3 %
|
Interest and other
expenses, net (b)
|
(34.4)
|
(14.1)
|
|
|
Earnings before income taxes
|
$
260.9
|
$
466.8
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the United
States, revenues from services include fees received from our
franchise offices of $8.9 million and $9.7 million
for the nine months ended September
30, 2023 and 2022, respectively. These fees are primarily based on
revenues generated
by the franchise offices, which were
$298.7 million and $360.8 million for the nine months ended
September 30, 2023 and 2022,
respectively.
|
|
|
|
|
|
(b) The
components of interest and other expenses, net were:
|
|
|
|
|
2023
|
2022
|
|
|
Interest
expense
|
$
59.7
|
$
31.7
|
|
|
Interest
income
|
(24.5)
|
(10.0)
|
|
|
Foreign
exchange loss
|
14.2
|
8.9
|
|
|
Miscellaneous income
|
(15.0)
|
(16.5)
|
|
|
|
$
34.4
|
$
14.1
|
|
|
|
|
|
|
|
ManpowerGroup
|
Consolidated Balance
Sheets
|
(In
millions)
|
|
|
|
|
|
Sep.
30,
|
|
Dec.
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
571.1
|
|
$ 639.0
|
Accounts
receivable, net
|
4,600.2
|
|
5,137.4
|
Prepaid expenses
and other assets
|
165.3
|
|
158.0
|
Total current
assets
|
5,336.6
|
|
5,934.4
|
|
|
|
|
Other
assets:
|
|
|
|
Goodwill
|
1,620.1
|
|
1,628.1
|
Intangible
assets, net
|
523.6
|
|
549.5
|
Operating lease
right-of-use asset
|
400.1
|
|
365.7
|
Other
assets
|
588.8
|
|
540.5
|
Total other
assets
|
3,132.6
|
|
3,083.8
|
|
|
|
|
Property and
equipment:
|
|
|
|
Land, buildings,
leasehold improvements and equipment
|
510.9
|
|
584.9
|
Less:
accumulated depreciation and amortization
|
391.3
|
|
472.7
|
Net property and
equipment
|
119.6
|
|
112.2
|
Total assets
|
$ 8,588.8
|
|
$
9,130.4
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 2,578.2
|
|
$
2,831.4
|
Employee
compensation payable
|
226.0
|
|
271.7
|
Accrued
liabilities
|
563.6
|
|
572.6
|
Accrued payroll
taxes and insurance
|
644.5
|
|
746.7
|
Value added
taxes payable
|
401.8
|
|
462.7
|
Short-term
borrowings and current maturities of long-term debt
|
13.6
|
|
26.6
|
Total current
liabilities
|
4,427.7
|
|
4,911.7
|
|
|
|
|
Other
liabilities:
|
|
|
|
Long-term
debt
|
948.5
|
|
959.9
|
Long-term
operating lease liability
|
306.2
|
|
266.6
|
Other long-term
liabilities
|
493.1
|
|
534.1
|
Total other
liabilities
|
1,747.8
|
|
1,760.6
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
ManpowerGroup
shareholders' equity
|
|
|
|
Common stock
|
1.2
|
|
1.2
|
Capital in excess of par value
|
3,505.0
|
|
3,484.2
|
Retained earnings
|
3,968.7
|
|
3,868.5
|
Accumulated other comprehensive loss
|
(483.1)
|
|
(458.7)
|
Treasury stock, at cost
|
(4,589.1)
|
|
(4,447.9)
|
Total
ManpowerGroup shareholders' equity
|
2,402.7
|
|
2,447.3
|
Noncontrolling
interests
|
10.6
|
|
10.8
|
Total shareholders' equity
|
2,413.3
|
|
2,458.1
|
Total liabilities and shareholders' equity
|
$ 8,588.8
|
|
$
9,130.4
|
|
|
|
|
ManpowerGroup
|
|
Consolidated Statements
of Cash Flows
|
|
(In
millions)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net
earnings
|
$ 173.3
|
|
$
325.1
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
64.3
|
|
63.9
|
|
Loss on sales of
subsidiaries, net
|
1.3
|
|
3.9
|
|
Deferred income
taxes
|
12.3
|
|
1.5
|
|
Provision for doubtful
accounts
|
5.4
|
|
7.2
|
|
Share-based
compensation
|
20.0
|
|
29.2
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
460.2
|
|
195.9
|
|
Other
assets
|
(51.3)
|
|
5.3
|
|
Other
liabilities
|
(451.0)
|
|
(342.8)
|
|
Cash provided by operating activities
|
234.5
|
|
289.2
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
(55.1)
|
|
(55.9)
|
|
Acquisitions of
businesses, net of cash acquired
|
-
|
|
(16.4)
|
|
Proceeds from
the sale of subsidiaries and property and equipment
|
2.6
|
|
7.0
|
|
Cash used in investing activities
|
(52.5)
|
|
(65.3)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Net change in
short-term borrowings
|
(13.7)
|
|
(1.5)
|
|
Net repayments
of revolving debt facility
|
-
|
|
(75.0)
|
|
Proceeds from
long-term debt
|
0.7
|
|
421.1
|
|
Repayments of
long-term debt
|
(0.7)
|
|
(412.1)
|
|
Payments for
debt issuance costs
|
-
|
|
(2.4)
|
|
Proceeds from
derivative settlement
|
-
|
|
2.0
|
|
Payments of
contingent consideration for acquisitions
|
-
|
|
(1.7)
|
|
Proceeds from
share-based awards
|
1.8
|
|
0.4
|
|
Payments to
noncontrolling interests
|
(0.6)
|
|
(1.0)
|
|
Other
share-based award transactions
|
(10.3)
|
|
(8.4)
|
|
Repurchases of
common stock
|
(129.8)
|
|
(245.0)
|
|
Dividends
paid
|
(73.1)
|
|
(71.2)
|
|
Cash used in financing activities
|
(225.7)
|
|
(394.8)
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(24.2)
|
|
(149.4)
|
|
Change in cash and cash
equivalents
|
(67.9)
|
|
(320.3)
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
639.0
|
|
847.8
|
|
Cash and cash
equivalents, end of period
|
$ 571.1
|
|
$
527.5
|
|
|
|
|
|
|
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