man-8k_20200720.htm
false 0000871763 0000871763 2020-07-20 2020-07-20

 

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): July 20, 2020

 

MANPOWERGROUP INC.

(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

 

(Former name or former address, if changed since last report.)

 

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 Exchange 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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

MAN

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

 


 


 

Item 2.02 Results of Operations and Financial Condition

 

The information in this Item 2.02, including exhibit 99.1 attached herto, is furnished solely pursuant to Item 2.02 of Form 8-K. Consequently, such information is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Further, the information in this Item 2.02, including exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.

On July 20, 2020, we issued a press release announcing our results of operations for the three and six months ended June 30, 2020. 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 July 20, 2020

99.2

 

Presentation materials for July 20, 2020 Conference Call

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

 

 

 

 

 


 

SIGNATURE

 

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.

 

 

 

 

 

MANPOWERGROUP INC.

 

 

 

 

 

 

 

Dated:

 

July 20, 2020

 

 

By:

 

/s/ John T. McGinnis

 

 

 

 

Name:

 

John T. McGinnis

 

 

 

 

Title:

 

Executive Vice President and

Chief Financial Officer

 

 

man-ex991_7.htm

 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Contact:

 

 

 

 

 

Jack McGinnis

 

 

+1.414.906.7977

 

 

jack.mcginnis@manpowergroup.com

 

ManpowerGroup Reports 2nd Quarter 2020 Results

 

 

Second quarter results materially impacted by COVID-19 crisis

 

Progressive monthly improvement in revenue trends during the second quarter

 

Our positioning during this downturn aided by our diversity of businesses, with Experis and Talent Solutions experiencing lower declines than Manpower brand

 

Ended the quarter with $1.4 billion of cash and cash equivalents and $600 million of untapped revolving credit facility

 

Net losses for the second quarter of $64 million include non-cash goodwill and other impairment charges of $73 million

 

Strong cost management in light of significant decreases in gross profit – SG&A costs reduced 16% in constant currency year over year excluding impairments

 

Stable dividend declared and paid during the second quarter

 

Significant increase in free cash flow and continued improvement in Days Sales Outstanding during the quarter

 

MILWAUKEE, July 20, 2020 -- ManpowerGroup (NYSE: MAN) today reported net losses of $1.10 per diluted share for the three months ended June 30, 2020 compared to net earnings of $2.11 per diluted share in the prior year period.  Net losses in the quarter were $64.4 million compared to net earnings of $127.3 million a year earlier.  Revenues for the second quarter were $3.7 billion, a 30% decline from the prior year period.  

The current year quarter included special items consisting of goodwill and other impairment, and discrete tax items, which reduced earnings per share by $1.28. Excluding these items, adjusted earnings per diluted share was $0.18 for the period.

Financial results in the quarter were also impacted by the stronger U.S. dollar relative to foreign currencies compared to the prior year period. Earnings per share in the quarter were negatively impacted 2 cents by changes in foreign currencies compared to the prior year.  On a constant currency basis, revenues decreased 28%.  Excluding the impact of the special items, on a constant currency basis, net earnings per diluted share decreased 91%.

Cash and cash equivalents at the end of the quarter equaled $1.4 billion, representing a $300 million increase from the preceding quarter, reflecting our committed focus on collections and working

 


 

capital management.  With this ongoing focus, our Days Sales Outstanding improved year over year.  A $600 million revolving credit facility, which expires in 2023, remained unused during the quarter and, combined with our existing cash position, provides significant liquidity. Free cash flow was very strong at $577 million in the six months year to date, representing an increase of $428 million from the year ago period excluding CICE receivable sales in 2019.

Jonas Prising, ManpowerGroup Chairman & CEO, said, “The world continues to be impacted by COVID-19 which started as a health crisis and evolved to become a global economic and social crisis.  While certain regions continue to deal with the pandemic at elevated levels, elsewhere lockdowns are easing, economies are slowly re-opening and people are returning to work. I am thankful and proud of our talented colleagues for providing the highest levels of support to our clients and candidates during this extremely challenging period. In this environment, we will continue to focus on operational excellence, including managing costs prudently to offset gross profit declines while continuing to invest in our transformation.  This is how we will continue to progress our key strategic initiatives and position us for further success when we emerge from these crises.”

“We anticipate diluted earnings per share in the third quarter will be between $0.59 and $0.67, which includes an estimated unfavorable currency impact of 1 cent and an elevated effective tax rate due to the French Business Tax which will have an unfavorable impact of 7 cents. Our third quarter guidance reflects our assumptions as of today and does not anticipate any major rollbacks of economic reopening activities in any of our largest markets.”

Net losses for the six months ended June 30, 2020 were $62.7 million, or net loss of $1.07 per diluted share compared to net earnings of $180.8 million, or net earnings of $2.98 per diluted share in the prior year. The year to date period included special items and restructuring costs which reduced earnings per share by $2.07. The prior year-to-date period included special items and restructuring costs which reduced earnings per share by 46 cents. Revenues for the six-month period were $8.4 billion, a decrease of 20% from the prior year or a decrease of 17% in constant currency. Earnings per share for the six-month period were negatively impacted 2 cents by changes in foreign currencies compared to the prior year, or 5 cents excluding the special items and restructuring costs.

In conjunction with its second quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on July 20, 2020 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://investor.manpowergroup.com/ in the section titled “Investor Relations.”

 

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 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity - as a best place to work for Women, Inclusion, Equality and Disability and in 2020 ManpowerGroup was named one of the World's Most Ethical Companies for the eleventh year - all confirming our position as the brand of choice for in-demand talent. 

 

Forward-Looking Statements

This news release contains statements, including statements regarding the anticipated financial and operational impacts of the COVID-19 pandemic and related economic conditions and the Company’s efforts to respond to such impacts, 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, 2019, as well as the risks and uncertainties arising from the COVID-19 global pandemic and related governmental actions that are included under the heading “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which information is incorporated herein by reference.

 

###

 

 

 


 

ManpowerGroup

Results of Operations

(In millions, except per share data)

 

 

Three Months Ended June 30

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Constant

 

 

 

2020

 

 

2019

 

 

Reported

 

 

Currency

 

 

 

(Unaudited)

 

Revenues from services (a)

 

$

3,742.2

 

 

$

5,373.1

 

 

 

-30.4

%

 

 

-28.0

%

Cost of services

 

 

3,165.5

 

 

 

4,502.7

 

 

 

-29.7

%

 

 

-27.3

%

Gross profit

 

 

576.7

 

 

 

870.4

 

 

 

-33.8

%

 

 

-31.9

%

Selling and administrative expenses, excluding

goodwill impairment charges

 

 

559.9

 

 

 

675.6

 

 

 

-17.1

%

 

 

-14.9

%

Goodwill impairment charges (b)

 

 

66.8

 

 

 

64.0

 

 

 

4.2

%

 

 

4.6

%

Selling and administrative expenses

 

 

626.7

 

 

 

739.6

 

 

 

-15.3

%

 

 

-13.2

%

Operating (loss) profit

 

 

(50.0

)

 

 

130.8

 

 

N/A

 

 

N/A

 

Interest and other expenses (income), net

 

 

5.8

 

 

 

(70.2

)

 

N/A

 

 

 

 

 

(Loss) earnings before income taxes

 

 

(55.8

)

 

 

201.0

 

 

N/A

 

 

N/A

 

Provision for income taxes

 

 

8.6

 

 

 

73.7

 

 

 

-88.4

%

 

 

 

 

Net (loss) earnings

 

$

(64.4

)

 

$

127.3

 

 

N/A

 

 

N/A

 

Net (loss) earnings per share - basic

 

$

(1.11

)

 

$

2.12

 

 

N/A

 

 

 

 

 

Net (loss) earnings per share - diluted

 

$

(1.10

)

 

$

2.11

 

 

N/A

 

 

N/A

 

Weighted average shares - basic

 

 

58.2

 

 

 

60.0

 

 

 

-3.0

%

 

 

 

 

Weighted average shares - diluted

 

 

58.5

 

 

 

60.4

 

 

 

-3.1

%

 

 

 

 

 

 

(a)

Revenues from services include fees received from our franchise offices of $2.8 million and $4.1 million for the three months ended June 30, 2020 and 2019, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $128.1 million and $163.2 million for the three months ended June 30, 2020 and 2019, respectively.

 

(b)

The goodwill impairment charges for both the three months ended June 30, 2020 and 2019 relate to our investment in Germany.

 


 

ManpowerGroup

Operating Unit Results

(In millions)

 

 

 

Three Months Ended June 30

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Constant

 

 

 

2020

 

 

2019

 

 

Reported

 

 

Currency

 

 

 

(Unaudited)

 

Revenues from Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States  (a)

 

$

515.9

 

 

$

652.7

 

 

 

-21.0

%

 

 

-21.0

%

Other Americas

 

 

320.7

 

 

 

415.5

 

 

 

-22.8

%

 

 

-10.0

%

 

 

 

836.6

 

 

 

1,068.2

 

 

 

-21.7

%

 

 

-16.7

%

Southern Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

France

 

 

736.0

 

 

 

1,425.3

 

 

 

-48.4

%

 

 

-47.5

%

Italy

 

 

268.5

 

 

 

394.4

 

 

 

-31.9

%

 

 

-30.7

%

Other Southern Europe

 

 

466.3

 

 

 

574.6

 

 

 

-18.9

%

 

 

-18.2

%

 

 

 

1,470.8

 

 

 

2,394.3

 

 

 

-38.6

%

 

 

-37.7

%

Northern Europe

 

 

865.7

 

 

 

1,194.1

 

 

 

-27.5

%

 

 

-24.2

%

APME

 

 

569.1

 

 

 

716.5

 

 

 

-20.6

%

 

 

-19.1

%

 

 

$

3,742.2

 

 

$

5,373.1

 

 

 

-30.4

%

 

 

-28.0

%

Operating Unit Profit (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

9.2

 

 

$

37.7

 

 

 

-75.5

%

 

 

-75.5

%

Other Americas

 

 

10.5

 

 

 

17.8

 

 

 

-41.2

%

 

 

-31.6

%

 

 

 

19.7

 

 

 

55.5

 

 

 

-64.5

%

 

 

-61.4

%

Southern Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

France

 

 

(2.5

)

 

 

75.7

 

 

N/A

 

 

N/A

 

Italy

 

 

11.0

 

 

 

29.8

 

 

 

-63.0

%

 

 

-62.6

%

Other Southern Europe

 

 

3.6

 

 

 

18.1

 

 

 

-80.8

%

 

 

-80.8

%

 

 

 

12.1

 

 

 

123.6

 

 

 

-90.2

%

 

 

-90.4

%

Northern Europe

 

 

0.3

 

 

 

25.6

 

 

 

-98.7

%

 

 

-96.9

%

APME

 

 

18.0

 

 

 

29.7

 

 

 

-39.4

%

 

 

-39.9

%

 

 

 

50.1

 

 

 

234.4

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

(26.6

)

 

 

(31.9

)

 

 

 

 

 

 

 

 

Goodwill impairment charges

 

 

(66.8

)

 

 

(64.0

)

 

 

 

 

 

 

 

 

Intangible asset amortization expense

 

 

(6.7

)

 

 

(7.7

)

 

 

 

 

 

 

 

 

Operating (loss) profit

 

 

(50.0

)

 

 

130.8

 

 

N/A

 

 

N/A

 

Interest and other (expenses) income, net (b)

 

 

(5.8

)

 

 

70.2

 

 

 

 

 

 

 

 

 

(Loss) earnings before income taxes

 

$

(55.8

)

 

$

201.0

 

 

 

 

 

 

 

 

 

 

(a)

In the United States, revenues from services include fees received from our franchise offices of $2.4 million and $3.7 million for the three months ended June 30, 2020 and 2019, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $122.3 million and $154.3 million for the three months ended June 30, 2020 and 2019, respectively.

(b)

The components of interest and other expenses (income), net were:

 

 

2020

 

 

2019

 

Interest expense

 

$

10.4

 

 

$

11.2

 

Interest income

 

 

(3.1

)

 

 

(1.1

)

Foreign exchange loss (gain)

 

 

0.5

 

 

 

(0.5

)

Miscellaneous income (c)

 

 

(2.0

)

 

 

(79.8

)

 

 

$

5.8

 

 

$

(70.2

)

 

(c)     2019 includes an $80.0 million gain related to our acquisition of the remaining controlling interest of our Swiss            franchise.

 


 

ManpowerGroup

Results of Operations

(In millions, except per share data)

 

 

Six Months Ended June 30

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Constant

 

 

 

2020

 

 

2019

 

 

Reported

 

 

Currency

 

 

 

(Unaudited)

 

Revenues from services (a)

 

$

8,361.3

 

 

$

10,418.0

 

 

 

-19.7

%

 

 

-17.3

%

Cost of services

 

 

7,060.6

 

 

 

8,742.8

 

 

 

-19.2

%

 

 

-16.8

%

Gross profit

 

 

1,300.7

 

 

 

1,675.2

 

 

 

-22.4

%

 

 

-20.2

%

Selling and administrative expenses, excluding

goodwill impairment charges

 

 

1,246.2

 

 

 

1,374.9

 

 

 

-9.4

%

 

 

-7.0

%

Goodwill impairment charges (b)

 

 

66.8

 

 

 

64.0

 

 

 

4.2

%

 

 

4.6

%

Selling and administrative expenses

 

 

1,313.0

 

 

 

1,438.9

 

 

 

-8.8

%

 

 

-6.5

%

Operating (loss) profit

 

 

(12.3

)

 

 

236.3

 

 

N/A

 

 

N/A

 

Interest and other expenses (income), net

 

 

26.3

 

 

 

(58.3

)

 

N/A

 

 

 

 

 

(Loss) earnings before income taxes

 

 

(38.6

)

 

 

294.6

 

 

N/A

 

 

N/A

 

Provision for income taxes

 

 

24.1

 

 

 

113.8

 

 

 

-78.8

%

 

 

 

 

Net (loss) earnings

 

$

(62.7

)

 

$

180.8

 

 

N/A

 

 

N/A

 

Net (loss) earnings per share - basic

 

$

(1.07

)

 

$

3.00

 

 

N/A

 

 

 

 

 

Net (loss) earnings per share - diluted

 

$

(1.07

)

 

$

2.98

 

 

N/A

 

 

N/A

 

Weighted average shares - basic

 

 

58.5

 

 

 

60.3

 

 

 

-3.0

%

 

 

 

 

Weighted average shares - diluted

 

 

58.7

 

 

 

60.7

 

 

 

-3.2

%

 

 

 

 

 

(a)

Revenues from services include fees received from our franchise offices of $6.1 million and $9.7 million for the six months ended June 30, 2020 and 2019, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $210.4 million and $406.2 million for the six months ended June 30, 2020 and 2019, respectively.

 

(b)

The goodwill impairment charges for both the six months ended June 30, 2020 and 2019 relate to our investment in Germany.

 

 

 

 


 

ManpowerGroup

Operating Unit Results

(In millions)

 

 

 

Six Months Ended June 30

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Constant

 

 

 

2020

 

 

2019

 

 

Reported

 

 

Currency

 

 

 

(Unaudited)

 

Revenues from Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States  (a)

 

$

1,126.8

 

 

$

1,275.9

 

 

 

-11.7

%

 

 

-11.7

%

Other Americas

 

 

720.8

 

 

 

822.5

 

 

 

-12.4

%

 

 

-2.0

%

 

 

 

1,847.6

 

 

 

2,098.4

 

 

 

-12.0

%

 

 

-7.9

%

Southern Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

France

 

 

1,829.8

 

 

 

2,731.4

 

 

 

-33.0

%

 

 

-31.3

%

Italy

 

 

596.2

 

 

 

750.8

 

 

 

-20.6

%

 

 

-18.6

%

Other Southern Europe

 

 

989.5

 

 

 

1,020.9

 

 

 

-3.1

%

 

 

-2.3

%

 

 

 

3,415.5

 

 

 

4,503.1

 

 

 

-24.2

%

 

 

-22.6

%

Northern Europe

 

 

1,934.2

 

 

 

2,394.6

 

 

 

-19.2

%

 

 

-16.0

%

APME

 

 

1,164.0

 

 

 

1,421.9

 

 

 

-18.1

%

 

 

-16.6

%

 

 

$

8,361.3

 

 

$

10,418.0

 

 

 

-19.7

%

 

 

-17.3

%

Operating Unit Profit (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

11.5

 

 

$

54.3

 

 

 

-78.7

%

 

 

-78.7

%

Other Americas

 

 

24.8

 

 

 

33.0

 

 

 

-25.0

%

 

 

-18.1

%

 

 

 

36.3

 

 

 

87.3

 

 

 

-58.4

%

 

 

-55.8

%

Southern Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

France

 

 

35.5

 

 

 

131.0

 

 

 

-72.9

%

 

 

-72.2

%

Italy

 

 

25.2

 

 

 

50.1

 

 

 

-49.8

%

 

 

-48.6

%

Other Southern Europe

 

 

4.4

 

 

 

29.1

 

 

 

-85.0

%

 

 

-85.9

%

 

 

 

65.1

 

 

 

210.2

 

 

 

-69.1

%

 

 

-68.5

%

Northern Europe

 

 

(13.8

)

 

 

27.5

 

 

N/A

 

 

N/A

 

APME

 

 

34.9

 

 

 

50.3

 

 

 

-30.5

%

 

 

-30.6

%

 

 

 

122.5

 

 

 

375.3

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

(54.4

)

 

 

(59.8

)

 

 

 

 

 

 

 

 

Goodwill impairment charges

 

 

(66.8

)

 

 

(64.0

)

 

 

 

 

 

 

 

 

Intangible asset amortization expense

 

 

(13.6

)

 

 

(15.2

)

 

 

 

 

 

 

 

 

Operating (loss) profit

 

 

(12.3

)

 

 

236.3

 

 

N/A

 

 

N/A

 

Interest and other (expenses) income, net (b)

 

 

(26.3

)

 

 

58.3

 

 

 

 

 

 

 

 

 

(Loss) earnings before income taxes

 

$

(38.6

)

 

$

294.6

 

 

 

 

 

 

 

 

 

 

(a)

In the United States, revenues from services include fees received from our franchise offices of $5.4 million and $7.3 million for the six months ended June 30, 2020 and 2019, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $198.8 million and $311.2 million for the six months ended June 30, 2020 and 2019, respectively.

(b)

The components of interest and other expenses (income), net were:

 

 

2020

 

 

2019

 

Interest expense

 

$

21.5

 

 

$

21.4

 

Interest income

 

 

(6.8

)

 

 

(2.6

)

Foreign exchange loss

 

 

3.6

 

 

 

2.4

 

Miscellaneous expense (income) (c)

 

 

8.0

 

 

 

(79.5

)

 

 

$

26.3

 

 

$

(58.3

)

 

(c)     2019 includes an $80.0 million gain related to our acquisition of the remaining controlling interest of our Swiss            franchise.

 


 

ManpowerGroup

Consolidated Balance Sheets

(In millions)

 

 

 

Jun. 30

 

 

Dec.31

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,438.6

 

 

$

1,025.8

 

Accounts receivable, net

 

 

4,224.6

 

 

 

5,273.1

 

Prepaid expenses and other assets

 

 

229.5

 

 

 

185.6

 

Total current assets

 

 

5,892.7

 

 

 

6,484.5

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

1,178.2

 

 

 

1,260.1

 

Intangible assets, net

 

 

255.1

 

 

 

268.6

 

Operating lease right-of-use asset

 

 

409.1

 

 

 

448.5

 

Other assets

 

 

588.1

 

 

 

618.8

 

Total other assets

 

 

2,430.5

 

 

 

2,596.0

 

Property and equipment:

 

 

 

 

 

 

 

 

Land, buildings, leasehold improvements and equipment

 

 

593.9

 

 

 

605.5

 

Less: accumulated depreciation and amortization

 

 

457.5

 

 

 

462.2

 

Net property and equipment

 

 

136.4

 

 

 

143.3

 

Total assets

 

$

8,459.6

 

 

$

9,223.8

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,243.5

 

 

$

2,474.9

 

Employee compensation payable

 

 

161.7

 

 

 

206.4

 

Accrued liabilities

 

 

499.6

 

 

 

545.4

 

Accrued payroll taxes and insurance

 

 

572.8

 

 

 

649.7

 

Value added taxes payable

 

 

419.5

 

 

 

504.0

 

Short-term borrowings and current maturities of long-term debt

 

 

40.5

 

 

 

61.0

 

Total current liabilities

 

 

3,937.6

 

 

 

4,441.4

 

Other liabilities:

 

 

 

 

 

 

 

 

Long-term debt

 

 

1,014.3

 

 

 

1,012.4

 

Long-term operating lease liability

 

 

308.5

 

 

 

336.7

 

Other long-term liabilities

 

 

656.4

 

 

 

671.8

 

Total other liabilities

 

 

1,979.2

 

 

 

2,020.9

 

Shareholders' equity:

 

 

 

 

 

 

 

 

ManpowerGroup shareholders' equity

 

 

 

 

 

 

 

 

Common stock

 

 

1.2

 

 

 

1.2

 

Capital in excess of par value

 

 

3,388.0

 

 

 

3,370.6

 

Retained earnings

 

 

3,368.2

 

 

 

3,494.1

 

Accumulated other comprehensive loss

 

 

(479.1

)

 

 

(441.0

)

Treasury stock, at cost

 

 

(3,752.3

)

 

 

(3,681.9

)

Total ManpowerGroup shareholders' equity

 

 

2,526.0

 

 

 

2,743.0

 

Noncontrolling interests

 

 

16.8

 

 

 

18.5

 

Total shareholders' equity

 

 

2,542.8

 

 

 

2,761.5

 

Total liabilities and shareholders' equity

 

$

8,459.6

 

 

$

9,223.8

 

 

 


 

ManpowerGroup

Consolidated Statements of Cash Flows

(In millions)

 

 

 

Six Months Ended

 

 

 

June 30

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net (loss) earnings

 

$

(62.7

)

 

$

180.8

 

Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

37.0

 

 

 

39.0

 

Non-cash gain on disposition of previously held equity interest

 

 

 

 

 

(80.4

)

Non-cash goodwill and other impairment charges

 

 

71.3

 

 

 

64.0

 

Deferred income taxes

 

 

(7.9

)

 

 

13.7

 

Provision for doubtful accounts

 

 

10.9

 

 

 

11.5

 

Share-based compensation

 

 

11.5

 

 

 

12.9

 

Changes in operating assets and liabilities, excluding the impact of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

988.3