ManpowerGroup Reports 1st Quarter 2022 Results
- Good revenue growth and record levels of permanent recruitment activity, resulting in 4% revenue increase (10% constant currency (CC)) and gross profit margin of 17.4%
- Strong performance of higher margin brands during the quarter with Experis recording 31% revenue growth (15% organic CC) and Talent Solutions 10% revenue growth (13% CC). Manpower delivered solid growth (-2% as reported; +5% organic CC)
- Improved profitability with expanded EBITA and operating profit margins during the quarter
- Significant growth in earnings per share year over year
- Company repurchased
$60 million of common stock during the quarter; reduced incremental acquisition debt from$75 million to$50 million
The current year quarter included integration costs from the
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
I am very proud of how our
Overall, we made good progress during the first quarter and believe that our focus on profitable growth positions us well in 2022.
We anticipate diluted earnings per share in the second quarter will be between
In conjunction with its first quarter earnings release,
Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.
About
Forward-Looking Statements
This news release contains statements, including statements regarding economic and geopolitical uncertainty, financial outlook, and the Company's strategic initiatives and 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
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Results of Operations |
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(In millions, except per share data) |
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Three Months Ended |
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% Variance |
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Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from services (a) |
$ 5,143.3 |
$ 4,924.4 |
4.4% |
9.8% |
Cost of services |
4,246.2 |
4,156.3 |
2.2% |
7.6% |
Gross profit |
897.1 |
768.1 |
16.8% |
22.2% |
Selling and administrative expenses |
758.4 |
669.7 |
13.2% |
18.2% |
Operating profit |
138.7 |
98.4 |
40.9% |
49.3% |
Interest and other expenses, net |
2.7 |
5.4 |
-50.8% |
|
Earnings before income taxes |
136.0 |
93.0 |
46.3% |
54.7% |
Provision for income taxes |
44.4 |
31.0 |
43.2% |
|
Net earnings |
$ 91.6 |
$ 62.0 |
47.8% |
56.3% |
Net earnings per share - basic |
$ 1.71 |
|
52.7% |
|
Net earnings per share - diluted |
$ 1.68 |
|
51.4% |
60.4% |
Weighted average shares - basic |
53.6 |
55.1 |
-2.8% |
|
Weighted average shares - diluted |
54.4 |
55.7 |
-2.3% |
|
(a) Revenues from services include fees received from our franchise offices of |
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Operating Unit Results |
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(In millions) |
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Three Months Ended |
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% Variance |
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Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
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Revenues from Services: |
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|
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United States (a) |
$ 889.4 |
$ 608.8 |
46.1% |
46.1% |
Other Americas |
361.8 |
394.1 |
-8.2% |
-5.9% |
1,251.2 |
1,002.9 |
24.8% |
25.7% |
|
|
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|
1,192.4 |
1,188.9 |
0.3% |
7.7% |
|
445.0 |
402.8 |
10.5% |
18.6% |
Other Southern Europe |
556.5 |
568.6 |
-2.1% |
2.7% |
2,193.9 |
2,160.3 |
1.6% |
8.4% |
|
|
1,094.5 |
1,133.8 |
-3.5% |
2.0% |
APME |
618.2 |
627.4 |
-1.5% |
6.0% |
5,157.8 |
4,924.4 |
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Intercompany Eliminations |
(14.5) |
- |
||
$ 5,143.3 |
$ 4,924.4 |
4.4% |
9.8% |
|
Operating Unit Profit: |
||||
|
||||
|
$ 58.3 |
$ 29.2 |
99.5% |
99.5% |
Other Americas |
14.5 |
14.9 |
-2.3% |
0.6% |
72.8 |
44.1 |
65.2% |
66.2% |
|
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|
49.6 |
42.6 |
16.4% |
25.1% |
|
29.0 |
19.4 |
49.6% |
60.7% |
Other Southern Europe |
16.6 |
11.4 |
45.7% |
50.0% |
95.2 |
73.4 |
29.7% |
38.4% |
|
|
3.3 |
4.8 |
-32.4% |
-35.3% |
APME |
19.0 |
18.8 |
0.8% |
10.1% |
190.3 |
141.1 |
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Corporate expenses |
(42.0) |
(37.2) |
||
Intangible asset amortization expense |
(9.6) |
(5.5) |
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Operating profit |
138.7 |
98.4 |
40.9% |
49.3% |
Interest and other expenses, net (b) |
(2.7) |
(5.4) |
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Earnings before income taxes |
$ 136.0 |
$ 93.0 |
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(a) In |
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(b) The components of interest and other expenses, net were: |
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2022 |
2021 |
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Interest expense |
$ 10.4 |
$ 10.2 |
||
Interest income |
(2.8) |
(3.1) |
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Foreign exchange loss |
1.8 |
2.5 |
||
Miscellaneous income |
(6.7) |
(4.2) |
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$ 2.7 |
$ 5.4 |
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Consolidated Balance Sheets |
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(In millions) |
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2022 |
2021 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 777.3 |
$ 847.8 |
|
Accounts receivable, net |
5,440.0 |
5,448.2 |
|
Prepaid expenses and other assets |
152.2 |
126.7 |
|
Total current assets |
6,369.5 |
6,422.7 |
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Other assets: |
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|
1,710.0 |
1,722.2 |
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Intangible assets, net |
573.0 |
583.6 |
|
Operating lease right-of-use asset |
351.5 |
373.4 |
|
Other assets |
603.7 |
610.2 |
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Total other assets |
3,238.2 |
3,289.4 |
|
Property and equipment: |
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Land, buildings, leasehold improvements and equipment |
591.1 |
594.9 |
|
Less: accumulated depreciation and amortization |
477.7 |
478.1 |
|
Net property and equipment |
113.4 |
116.8 |
|
Total assets |
$ 9,721.1 |
$ 9,828.9 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ 3,153.2 |
$ 3,039.2 |
|
Employee compensation payable |
228.9 |
299.4 |
|
Accrued liabilities |
589.6 |
584.7 |
|
Accrued payroll taxes and insurance |
733.2 |
789.1 |
|
Value added taxes payable |
479.7 |
515.5 |
|
Short-term borrowings and current maturities of long-term debt |
512.6 |
552.6 |
|
Total current liabilities |
5,697.2 |
5,780.5 |
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Other liabilities: |
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Long-term debt |
551.3 |
565.7 |
|
Long-term operating lease liability |
256.3 |
275.8 |
|
Other long-term liabilities |
660.2 |
675.2 |
|
Total other liabilities |
1,467.8 |
1,516.7 |
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Shareholders' equity: |
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|
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Common stock |
1.2 |
1.2 |
|
Capital in excess of par value |
3,455.2 |
3,444.7 |
|
Retained earnings |
3,726.2 |
3,634.6 |
|
Accumulated other comprehensive loss |
(399.6) |
(389.4) |
|
|
(4,237.5) |
(4,169.4) |
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Total ManpowerGroup shareholders' equity |
2,545.5 |
2,521.7 |
|
Noncontrolling interests |
10.6 |
10.0 |
|
Total shareholders' equity |
2,556.1 |
2,531.7 |
|
Total liabilities and shareholders' equity |
$ 9,721.1 |
$ 9,828.9 |
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Consolidated Statements of Cash Flows |
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(In millions) |
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Three Months Ended |
|||
|
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2022 |
2021 |
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(Unaudited) |
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Cash Flows from Operating Activities: |
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Net earnings |
$ 91.6 |
$ 62.0 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
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Depreciation and amortization |
21.3 |
17.9 |
|
Non-cash loss on sale of a subsidiary |
8.0 |
- |
|
Deferred income taxes |
2.4 |
(10.6) |
|
Provision for doubtful accounts |
2.8 |
5.2 |
|
Share-based compensation |
10.6 |
7.5 |
|
Changes in operating assets and liabilities, excluding the impact of dispositions: |
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Accounts receivable |
(96.9) |
(94.5) |
|
Other assets |
(17.1) |
(39.5) |
|
Other liabilities |
47.9 |
192.9 |
|
Cash provided by operating activities |
70.6 |
140.9 |
|
Cash Flows from Investing Activities: |
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Capital expenditures |
(19.4) |
(12.7) |
|
Acquisitions of businesses, net of cash acquired |
- |
(7.1) |
|
Proceeds from the sale of subsidiaries and property and equipment |
0.8 |
0.7 |
|
Cash used in investing activities |
(18.6) |
(19.1) |
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Cash Flows from Financing Activities: |
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Net change in short-term borrowings |
(3.7) |
4.9 |
|
Repayments of revolving debt facility |
(25.0) |
- |
|
Proceeds from long-term debt |
0.7 |
0.1 |
|
Repayments of long-term debt |
- |
(2.2) |
|
Payments of contingent consideration for acquisitions |
- |
(5.8) |
|
Proceeds from share-based awards |
0.3 |
1.7 |
|
Other share-based award transactions |
(8.2) |
(4.6) |
|
Repurchases of common stock |
(59.9) |
(100.1) |
|
Cash used in financing activities |
(95.8) |
(106.0) |
|
Effect of exchange rate changes on cash |
(26.7) |
(60.2) |
|
Change in cash and cash equivalents |
(70.5) |
(44.4) |
|
Cash and cash equivalents, beginning of period |
847.8 |
1,567.1 |
|
Cash and cash equivalents, end of period |
$ 777.3 |
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SOURCE
Nick Hengst, +1.414.906.7356, [email protected]