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): April 20, 2012
MANPOWER INC.
(d/b/a ManpowerGroup)
(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.)
|
|
100 Manpower Place
|
|
|
Milwaukee, Wisconsin
|
53212
|
|
(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 April 20, 2012, we issued a press release announcing our results of operations for the three months ended March 31, 2012. 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 April 20, 2012
|
||
| 99.2 |
Presentation materials for April 20, 2012 conference call
|
||
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.
(d/b/a ManpowerGroup)
|
||||
|
Dated: April 20, 2012
|
By:
|
/s/ Michael J. Van Handel
|
||
|
Michael J. Van Handel
Executive Vice President and
Chief Financial Officer
|
EXHIBIT INDEX
|
Exhibit No.
|
Description
|
||
| 99.1 |
Press Release dated April 20, 2012
|
||
| 99.2 |
Presentation materials for April 20, 2012 conference call
|
||
Exhibit 99.1
FOR IMMEDIATE RELEASE Contact:
Mike Van Handel
+1.414.906.6305
ManpowerGroup Reports 1st Quarter 2012 Results
MILWAUKEE, April 20, 2012 -- ManpowerGroup (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2012 were $40.2 million, or 50 cents per diluted share, compared to net earnings of $35.7 million, or 43 cents per diluted share, a year earlier. Revenues for the first quarter were $5.1 billion, similar to the prior year, up 3% in constant currency.
Net earnings in the first quarter were negatively impacted by 2 cents per diluted share, as foreign currencies were relatively weaker compared to the prior year period.
Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, “We were able to achieve very solid profitability despite the continued headwinds of slow economic growth. Our geographic foot print, wide range of offerings and very good expense management contributed to the strong quarter. Our workforce solutions business continued to grow by solid double digits while our permanent recruitment business continues to outpace last year.
“We anticipate second quarter earnings per share will range between 68 cents to 76 cents. This includes an unfavorable impact of 4 cents per share related to currency changes in the quarter.”
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 20, 2012 at 7:30 a.m. CDT (8:30 a.m. EDT). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://www.manpowergroup.com/investors.
Supplemental financial information referenced in the conference call can be found at http://www.manpowergroup.com/investors.
About ManpowerGroup™
ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world's largest and industry-leading network of nearly 3,800 offices in 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined — because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. Learn more about how the ManpowerGroup can help you win in the Human Age at www.manpowergroup.com.
ManpowerGroup is the most trusted brand in the industry, and was once again the only company in our industry to be named to the Ethisphere Institute's 2012 World's Most Ethical Companies list for our proven commitment to ethical business practices, including an outstanding commitment to ethical leadership, compliance practices and corporate social responsibility.
In January 2011, at the World Economic Forum Annual Meeting in Davos, Switzerland, ManpowerGroup announced the world has entered the Human Age, where talent has replaced capital as the key competitive differentiator. This concept of talentism as the new capitalism continues to resonate and was echoed as a core theme of the 2012 Annual Meeting of the World Economic Forum in Davos. Learn more about this new age at www.manpowergroup.com/humanage.
Gain access to ManpowerGroup's extensive thought leadership papers, annual Talent Shortage surveys and the Manpower Employment Outlook Survey, one of the most trusted indices of employment activity in the world, via the ManpowerGroup World of Work Insight iPad application. This thought leadership app explores the challenges faced by employers navigating the changing world of work and provides in-depth commentary, analysis, insight and advice on strategies for success.
Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: twitter.com/manpowergroupjj. Joerres is one of only six Fortune 500 CEOs who leverages a Twitter account to get his message out.
Forward-Looking Statements
This news release contains statements, including earnings 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 ‘Risk Factors’ in its Annual Report on Form 10-K for the year ended December 31, 2011, which information is incorporated herein by reference.
###
|
Results of Operations
|
||||||||||||||||
|
(In millions, except per share data)
|
||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2012
|
2011
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from services (a)
|
$ | 5,096.4 | $ | 5,072.4 | 0.5 | % | 3.0 | % | ||||||||
|
Cost of services
|
4,249.0 | 4,214.8 | 0.8 | % | 3.4 | % | ||||||||||
|
Gross profit
|
847.4 | 857.6 | -1.2 | % | 1.1 | % | ||||||||||
|
Selling and administrative expenses
|
753.6 | 772.0 | -2.4 | % | -0.3 | % | ||||||||||
|
Operating profit
|
93.8 | 85.6 | 9.5 | % | 13.9 | % | ||||||||||
|
Interest and other expenses
|
11.8 | 11.1 | 5.3 | % | ||||||||||||
|
Earnings before income taxes
|
82.0 | 74.5 | 10.1 | % | 14.7 | % | ||||||||||
|
Provision for income taxes
|
41.8 | 38.8 | 7.6 | % | ||||||||||||
|
Net earnings
|
$ | 40.2 | $ | 35.7 | 12.8 | % | 17.5 | % | ||||||||
|
Net earnings per share - basic
|
$ | 0.50 | $ | 0.44 | 13.6 | % | ||||||||||
|
Net earnings per share - diluted
|
$ | 0.50 | $ | 0.43 | 16.3 | % | 20.9 | % | ||||||||
|
Weighted average shares - basic
|
80.2 | 81.9 | -2.0 | % | ||||||||||||
|
Weighted average shares - diluted
|
80.9 | 83.6 | -3.3 | % | ||||||||||||
|
(a) Revenues from services include fees received from our franchise offices of $5.4 million and $5.9 million for the three months ended March 31, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $253.9 million and $274.5 million for the three months ended March 31, 2012 and 2011, respectively.
|
||||||||||||||||
|
ManpowerGroup
|
||||||||||||||||
|
Operating Unit Results
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||
|
% Variance
|
||||||||||||||||
|
Amount
|
Constant
|
|||||||||||||||
|
2012
|
2011
|
Reported
|
Currency
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenues from Services:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States (a)
|
$ | 735.8 | $ | 750.9 | -2.0 | % | -2.0 | % | ||||||||
|
Other Americas
|
402.5 | 361.8 | 11.3 | % | 16.1 | % | ||||||||||
| 1,138.3 | 1,112.7 | 2.3 | % | 3.9 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
1,291.8 | 1,353.8 | -4.6 | % | -0.4 | % | ||||||||||
|
Italy
|
267.5 | 284.6 | -6.0 | % | -1.9 | % | ||||||||||
|
Other Southern Europe
|
195.2 | 180.0 | 8.5 | % | 13.7 | % | ||||||||||
| 1,754.5 | 1,818.4 | -3.5 | % | 0.7 | % | |||||||||||
|
Northern Europe
|
1,444.0 | 1,456.6 | -0.9 | % | 2.6 | % | ||||||||||
|
APME
|
680.0 | 602.9 | 12.8 | % | 9.8 | % | ||||||||||
|
Right Management
|
79.6 | 81.8 | -2.6 | % | -2.0 | % | ||||||||||
| $ | 5,096.4 | $ | 5,072.4 | 0.5 | % | 3.0 | % | |||||||||
|
Operating Unit Profit:
|
||||||||||||||||
|
Americas:
|
||||||||||||||||
|
United States
|
$ | 6.9 | $ | 8.7 | -20.8 | % | -20.8 | % | ||||||||
|
Other Americas
|
15.3 | 12.8 | 19.7 | % | 26.2 | % | ||||||||||
| 22.2 | 21.5 | 3.4 | % | 7.2 | % | |||||||||||
|
Southern Europe:
|
||||||||||||||||
|
France
|
5.5 | 12.0 | -54.3 | % | -51.4 | % | ||||||||||
|
Italy
|
14.5 | 12.9 | 12.7 | % | 18.0 | % | ||||||||||
|
Other Southern Europe
|
3.5 | 2.2 | 56.0 | % | 64.9 | % | ||||||||||
| 23.5 | 27.1 | -13.4 | % | -8.8 | % | |||||||||||
|
Northern Europe
|
43.9 | 41.9 | 4.8 | % | 8.3 | % | ||||||||||
|
APME
|
19.6 | 16.5 | 18.5 | % | 16.1 | % | ||||||||||
|
Right Management
|
2.5 | 3.3 | -24.6 | % | -24.5 | % | ||||||||||
| 111.7 | 110.3 | |||||||||||||||
|
Corporate expenses
|
(26.3 | ) | (32.0 | ) | ||||||||||||
|
Intangible asset amortization expense
|
(9.0 | ) | (9.6 | ) | ||||||||||||
|
Reclassification of French business tax
|
17.4 | 16.9 | ||||||||||||||
|
Operating profit
|
93.8 | 85.6 | 9.5 | % | 13.9 | % | ||||||||||
|
Interest and other expenses (b)
|
(11.8 | ) | (11.1 | ) | ||||||||||||
|
Earnings before income taxes
|
$ | 82.0 | $ | 74.5 | ||||||||||||
|
(a) In the United States, revenues from services include fees received from our franchise offices of $3.2 million and $2.7 million for the three months ended March 31, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $164.4 million and $148.5 million for the three months ended March 31, 2012 and 2011, respectively.
|
||||||||||||||||
|
(b) The components of interest and other expenses were:
|
||||||||||||||||
| 2012 | 2011 | |||||||||||||||
|
Interest expense
|
$ | 10.6 | $ | 10.2 | ||||||||||||
|
Interest income
|
(1.8 | ) | (1.4 | ) | ||||||||||||
|
Foreign exchange (gain) loss
|
(0.2 | ) | 0.5 | |||||||||||||
|
Miscellaneous expenses, net
|
3.2 | 1.8 | ||||||||||||||
| $ | 11.8 | $ | 11.1 | |||||||||||||
|
ManpowerGroup
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
(In millions)
|
||||||||
|
Mar. 31
|
Dec. 31
|
|||||||
|
2012
|
2011
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 553.5 | $ | 580.5 | ||||
|
Accounts receivable, net
|
4,232.7 | 4,181.3 | ||||||
|
Prepaid expenses and other assets
|
189.7 | 176.3 | ||||||
|
Future income tax benefits
|
56.5 | 52.4 | ||||||
|
Total current assets
|
5,032.4 | 4,990.5 | ||||||
|
Other assets:
|
||||||||
|
Goodwill and other intangible assets, net
|
1,342.9 | 1,339.6 | ||||||
|
Other assets
|
417.1 | 395.1 | ||||||
|
Total other assets
|
1,760.0 | 1,734.7 | ||||||
|
Property and equipment:
|
||||||||
|
Land, buildings, leasehold improvements and equipment
|
710.9 | 685.6 | ||||||
|
Less: accumulated depreciation and amortization
|
530.0 | 511.1 | ||||||
|
Net property and equipment
|
180.9 | 174.5 | ||||||
|
Total assets
|
$ | 6,973.3 | $ | 6,899.7 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 1,432.2 | $ | 1,370.6 | ||||
|
Employee compensation payable
|
189.7 | 221.9 | ||||||
|
Accrued liabilities
|
513.0 | 520.8 | ||||||
|
Accrued payroll taxes and insurance
|
649.8 | 712.4 | ||||||
|
Value added taxes payable
|
488.0 | 502.3 | ||||||
|
Short-term borrowings and current maturities of long-term debt
|
454.2 | 434.2 | ||||||
|
Total current liabilities
|
3,726.9 | 3,762.2 | ||||||
|
Other liabilities:
|
||||||||
|
Long-term debt
|
267.6 | 266.0 | ||||||
|
Other long-term liabilities
|
410.3 | 388.1 | ||||||
|
Total other liabilities
|
677.9 | 654.1 | ||||||
|
Shareholders' equity:
|
||||||||
|
Common stock
|
1.1 | 1.1 | ||||||
|
Capital in excess of par value
|
2,849.8 | 2,839.9 | ||||||
|
Retained earnings
|
1,011.9 | 971.7 | ||||||
|
Accumulated other comprehensive income
|
74.8 | 35.3 | ||||||
|
Treasury stock, at cost
|
(1,369.1 | ) | (1,364.6 | ) | ||||
|
Total shareholders' equity
|
2,568.5 | 2,483.4 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 6,973.3 | $ | 6,899.7 | ||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
(In millions)
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31
|
||||||||
|
2012
|
2011
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net earnings
|
$ | 40.2 | $ | 35.7 | ||||
|
Adjustments to reconcile net earnings to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
24.3 | 25.9 | ||||||
|
Deferred income taxes
|
(0.8 | ) | (2.9 | ) | ||||
|
Provision for doubtful accounts
|
5.0 | 5.9 | ||||||
|
Share-based compensation
|
6.9 | 8.2 | ||||||
|
Excess tax benefit on exercise of share-based awards
|
- | (0.5 | ) | |||||
|
Changes in operating assets and liabilities, excluding the impact of acquisitions:
|
||||||||
|
Accounts receivable
|
34.4 | (212.9 | ) | |||||
|
Other assets
|
(16.7 | ) | (6.3 | ) | ||||
|
Other liabilities
|
(114.0 | ) | (12.8 | ) | ||||
|
Cash used in operating activities
|
(20.7 | ) | (159.7 | ) | ||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(19.7 | ) | (11.2 | ) | ||||
|
Acquisitions of businesses, net of cash acquired
|
(1.5 | ) | - | |||||
|
Proceeds from sales of property and equipment
|
0.1 | 1.1 | ||||||
|
Cash used in investing activities
|
(21.1 | ) | (10.1 | ) | ||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Net change in short-term borrowings
|
9.5 | 9.6 | ||||||
|
Proceeds from long-term debt
|
0.1 | 0.1 | ||||||
|
Repayments of long-term debt
|
(8.4 | ) | (0.1 | ) | ||||
|
Proceeds from share-based awards
|
3.5 | 5.2 | ||||||
|
Other share-based award transactions, net
|
(4.5 | ) | 0.5 | |||||
|
Cash provided by financing activities
|
0.2 | 15.3 | ||||||
|
Effect of exchange rate changes on cash
|
14.6 | 31.4 | ||||||
|
Change in cash and cash equivalents
|
(27.0 | ) | (123.1 | ) | ||||
|
Cash and cash equivalents, beginning of period
|
580.5 | 772.6 | ||||||
|
Cash and cash equivalents, end of period
|
$ | 553.5 | $ | 649.5 | ||||
Exhibit 99.2
ManpowerGroup
1st Quarter
April 20, 2012
ManpowerGroup 2012 1st Quarter Results April 2012
Forward-Looking Statement
This presentation includes forward-looking statements,
including earnings projections which are subject to risks and
uncertainties. Actual results might differ materially from those
projected in the forward-looking statements. Additional
information concerning factors that could cause actual
results to materially differ from those in the forward-looking
statements is contained in the Manpower Inc. Annual Report
on Form 10-K dated December 31, 2011, 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.
including earnings projections which are subject to risks and
uncertainties. Actual results might differ materially from those
projected in the forward-looking statements. Additional
information concerning factors that could cause actual
results to materially differ from those in the forward-looking
statements is contained in the Manpower Inc. Annual Report
on Form 10-K dated December 31, 2011, 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.
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
0%
|
Revenue $5.1B
|
|
3% CC
|
|
|
30 bps
|
Gross Margin 16.6%
|
|
9%
|
Operating Profit $94M
|
|
14% CC
|
|
|
10 bps
|
OP Margin 1.8%
|
|
16%
|
EPS $.50
|
|
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.
represents the impact of currency on our financial results. Constant Currency is further explained on our Web site.
Consolidated Financial Highlights
3
ManpowerGroup 2012 1st Quarter Results April 2012
Consolidated Gross Margin Change
4
ManpowerGroup 2012 1st Quarter Results April 2012
SG&A Expense Bridge - Q1 YoY
(in millions of USD)
(in millions of USD)
5
90.0%
88.9%
Productivity Gain
% of GP
% of GP
ManpowerGroup 2012 1st Quarter Results April 2012
6
$847M
Growth
in CC %
Business Line Gross Profit - Q1 2012
█ Manpower █ Experis █ ManpowerGroup - Total
█ ManpowerGroup Solutions █ Right Management
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
2%
|
Revenue $1.1B
|
|
4% CC
|
|
|
3%
|
OUP $22M
|
|
7% CC
|
|
|
10 bps
|
OUP Margin 2.0%
|
7
(1)
Americas Segment
(22% of Revenue)
(1) Included in these amounts is the US, which had revenue of $736M (-2%) and OUP of $7M (-21%).
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.
equal to segment revenues less direct costs and branch and national headquarters operating
costs.
ManpowerGroup 2012 1st Quarter Results April 2012
Americas - Q1 Revenue Growth YoY
8
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
65%
12%
8%
15%
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
4%
|
Revenue $1.8B
|
|
1% CC
|
|
|
13%
|
OUP $23M
|
|
9% CC
|
|
|
20 bps
|
OUP Margin 1.3%
|
9
(1)
Southern Europe Segment
(35% of Revenue)
(1) Included in these amounts is France, which had revenue of $1.3B (flat in CC) and OUP of $5M (-51% CC).
On an organic basis, revenue decreased 6% (-2% in CC).
On an organic basis, revenue decreased 6% (-2% in CC).
(2) On an organic basis, revenue decreased 5% (flat in CC).
(2)
ManpowerGroup 2012 1st Quarter Results April 2012
Southern Europe - Q1 Revenue Growth YoY
10
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
74%
15%
5%
6%
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
1%
|
Revenue $1.4B
|
|
3% CC
|
|
|
5%
|
OUP $44M
|
|
8% CC
|
|
|
10 bps
|
OUP Margin 3.0%
|
11
Northern Europe Segment
(28% of Revenue)
ManpowerGroup 2012 1st Quarter Results April 2012
Northern Europe - Q1 Revenue Growth YoY
12
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
25%
24%
14%
10%
20%
7%
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
13%
|
Revenue $680M
|
|
10% CC
|
|
|
19%
|
OUP $20M
|
|
16% CC
|
|
|
20 bps
|
OUP Margin 2.9%
|
APME Segment
(13% of Revenue)
13
(1)
(1) On an organic basis, revenue increased 6% (3% in CC).
ManpowerGroup 2012 1st Quarter Results April 2012
APME - Q1 Revenue Growth YoY
14
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
44%
27%
29%
(1) On an organic basis, Other revenue growth was 10% (+12% CC).
(1)
ManpowerGroup 2012 1st Quarter Results April 2012
|
As
Reported
|
Q1 Financial Highlights
|
|
3%
|
Revenue $80M
|
|
2% CC
|
|
|
25%
|
OUP $2M
|
|
25% CC
|
|
|
90 bps
|
OUP Margin 3.1%
|
15
Right Management Segment
(2% of Revenue)
ManpowerGroup 2012 1st Quarter Results April 2012
|
($ in millions)
|
2012
|
|
2011
|
|
Cash used in operating activities
|
(21)
|
|
(160)
|
|
Capital Expenditures
|
(19)
|
|
(11)
|
|
Free Cash Flow
|
(40)
|
|
(171)
|
|
Change in Debt
|
1
|
|
10
|
|
Acquisitions of Businesses
net of cash acquired
|
(2)
|
|
-
|
|
Effect of Exchange Rate Changes
|
15
|
|
31
|
|
Other
|
(1)
|
|
7
|
|
Change in Cash
|
(27)
|
|
(123)
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Summary - Q1
16
ManpowerGroup 2012 1st Quarter Results April 2012
Balance Sheet Highlights
17
Total Debt
($ in millions)
Total Debt to
Total Capitalization
Total Debt
Net Debt
ManpowerGroup 2012 1st Quarter Results April 2012
|
|
Interest
Rate
|
Maturity
Date
|
Total
Outstanding
at 3/31/12 |
|
Remaining
Available
at 3/31/12
|
|
|
Euro Notes:
|
|
|
|
|
|
|
|
- Euro 200M
|
4.86%
|
Jun 2013
|
267
|
|
-
|
|
|
- Euro 300M
|
4.58%
|
Jun 2012
|
400
|
|
-
|
|
|
Revolving Credit Agreement
|
1.52%
|
Oct 2016
|
-
|
|
798
|
|
|
Uncommitted lines and Other
|
Various
|
Various
|
55
|
|
338
|
|
|
Total Debt
|
|
|
722
|
|
1,136
|
Credit Facilities
($ in millions)
($ in millions)
18
Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $392.7M. Total subsidiary borrowing are
limited to $300M due to restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are
limited to $600M.
limited to $300M due to restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are
limited to $600M.
(1)
(2)
(2)
(1)
The $800M agreement requires that we comply with a Leverage Ratio (Debt-to-EBITDA) of not greater than 3.5 to 1 and a
Fixed Charge Coverage Ratio of not less than 1.5 to 1, in addition to other customary restrictive covenants. As defined in the
agreement, we had a Debt-to-EBITDA ratio of 0.86 and a fixed charge coverage ratio of 3.17 as of March 31, 2012. As of
March 31, 2012, there were $1.6M of standby letters of credit issued under the agreement.
Fixed Charge Coverage Ratio of not less than 1.5 to 1, in addition to other customary restrictive covenants. As defined in the
agreement, we had a Debt-to-EBITDA ratio of 0.86 and a fixed charge coverage ratio of 3.17 as of March 31, 2012. As of
March 31, 2012, there were $1.6M of standby letters of credit issued under the agreement.
ManpowerGroup 2012 1st Quarter Results April 2012
|
Revenue
|
Total
|
Down 6-8% (Down 0-2% CC)
|
|
|
Americas
|
Up/Down 1% (Up 1-3% CC)
|
|
|
Southern Europe
|
Down 12-14% (Down 3-5% CC)
|
|
|
Northern Europe
|
Down 8-10% (Down 1-3% CC)
|
|
|
APME
|
Up 2-4% (Up 3-5% CC)
|
|
Right Management
|
Up/Down 1% (Up 1-3% CC)
|
|
|
Gross Profit Margin
|
16.9 - 17.0%
|
|
|
Operating Profit Margin
|
2.3 - 2.5%
|
|
|
Tax Rate
|
48% (37% excl. reclassification of France business tax)
|
|
|
EPS
|
$0.68 - $0.76 (Neg. $.04 Currency)
|
|
Second Quarter Outlook
19
ManpowerGroup 2012 1st Quarter Results April 2012
Strategic Drivers
20
ManpowerGroup 2012 1st Quarter Results April 2012
ManpowerGroup 2012 1st Quarter Results April 2012
Questions
21