UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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(Address of principal executive offices) |
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Registrant's telephone number, including area code:
(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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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 |
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 hereto, 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 19, 2022, we issued a press release announcing our results of operations for the three and six months ended June 30, 2022 and 2021. 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. |
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Description |
99.1 |
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99.2 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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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.
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MANPOWERGROUP INC. |
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Dated: |
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July 19, 2022 |
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By: |
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/s/ John T. McGinnis |
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Name: |
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John T. McGinnis |
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Title: |
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Executive Vice President and Chief Financial Officer |
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Exhibit 99.1
FOR IMMEDIATE RELEASE |
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Contact: |
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Nick Hengst |
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+1.414.906.7356 |
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ManpowerGroup Reports 2nd Quarter 2022 Results
MILWAUKEE, July 19, 2022 -- ManpowerGroup (NYSE: MAN) today reported net earnings of $2.29 per diluted share for the three months ended June 30, 2022 compared to $2.02 per diluted share in the prior year period. Net earnings in the quarter were $122.2 million compared to $111.6 million a year earlier. Revenues for the second quarter were $5.1 billion, a 4% decrease from the prior year period.
The current year quarter included integration costs from the U.S. Experis acquisition. These costs reduced earnings per share by $0.04 in the current quarter. Excluding these costs, earnings per share was $2.33 per diluted share in 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 25 cent negative impact to earnings per share in the quarter compared to the prior year. This represented an additional 6 cent negative impact to earnings per share from foreign currency than anticipated in our second quarter guidance. On a constant currency basis, revenues increased 6% (3% in organic constant currency) compared to the prior year period. Excluding the net impact of integration costs, on a constant currency basis net earnings per diluted share increased 28% during the quarter.
Jonas Prising, ManpowerGroup Chairman & CEO, said, “Our second quarter results demonstrate the disciplined execution of our strategic initiatives and the continued strength of demand for our higher margin businesses. Overall, we made solid progress during the second quarter and believe that the continued execution of our Diversification, Digitization and Innovation strategy positions us well for ongoing
success. Notably, our ability to create talent at scale through our innovative MyPath and Experis Academy programs are clear differentiators in the market.
As we start the third quarter, labor markets remain very solid and demand for talent is strong. We continue to monitor those sectors in Europe where present-day supply-chain disruptions are impacting our business, particularly in the automotive industry. At the same time, we also believe the persistent level of talent shortage represents a significant opportunity for our business. We see this evidenced by the strong ongoing demand in our permanent recruitment services, in our RPO and MSP Talent Solution offerings, in our Experis IT resourcing and solutions, and across our Manpower Specializations.
We anticipate diluted earnings per share in the third quarter will be between $2.19 and $2.27, which includes an estimated unfavorable currency impact of 29 cents. Our guidance excludes expected integration costs ranging from $4 million to $6 million.”
Net earnings for the six months ended June 30, 2022 were $213.8 million, or net earnings of $3.97 per diluted share compared to net earnings of $173.6 million, or net earnings of $3.13 per diluted share in the prior year. The current year to date period included integration costs from the U.S. Experis acquisition and the net loss related to the sale of our Russia business in January which reduced earnings per share by 24 cents. Revenues for the six-month period were $10.2 billion, flat compared to the prior year or an increase of 8% in constant currency. Earnings per share for the six-month period were negatively impacted by 35 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 19, 2022 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the conference call are included within the Investor Relations section of our website at manpowergroup.com. 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 2022 ManpowerGroup was named one of the World's Most Ethical Companies for the 13th 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 economic and geopolitical uncertainty, labor and 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 SEC, including the information under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2021, as well as the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, which information is incorporated herein by reference.
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ManpowerGroup
Results of Operations
(In millions, except per share data)
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Three Months Ended June 30 |
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% Variance |
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Amount |
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Constant |
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2022 |
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2021 |
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Reported |
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Currency |
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(Unaudited) |
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Revenues from services (a) |
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$ |
5,074.1 |
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$ |
5,277.1 |
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-3.8 |
% |
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5.7 |
% |
Cost of services |
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4,152.9 |
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4,417.0 |
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-6.0 |
% |
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3.6 |
% |
Gross profit |
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921.2 |
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860.1 |
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7.1 |
% |
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16.4 |
% |
Selling and administrative expenses |
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740.5 |
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690.2 |
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7.3 |
% |
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16.0 |
% |
Operating profit |
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180.7 |
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169.9 |
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6.3 |
% |
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18.1 |
% |
Interest and other expenses, net |
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6.7 |
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2.8 |
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135.3 |
% |
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Earnings before income taxes |
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174.0 |
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167.1 |
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4.1 |
% |
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15.5 |
% |
Provision for income taxes |
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51.8 |
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55.5 |
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-6.7 |
% |
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Net earnings |
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$ |
122.2 |
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$ |
111.6 |
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9.5 |
% |
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21.5 |
% |
Net earnings per share - basic |
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$ |
2.32 |
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$ |
2.05 |
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13.2 |
% |
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Net earnings per share - diluted |
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$ |
2.29 |
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$ |
2.02 |
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13.4 |
% |
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25.7 |
% |
Weighted average shares - basic |
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52.7 |
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54.5 |
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-3.3 |
% |
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Weighted average shares - diluted |
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53.4 |
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55.4 |
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-3.6 |
% |
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ManpowerGroup
Operating Unit Results
(In millions)
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Three Months Ended June 30 |
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% Variance |
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Amount |
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Constant |
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2022 |
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2021 |
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Reported |
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Currency |
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(Unaudited) |
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Revenues from Services: |
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Americas: |
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United States (a) |
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$ |
903.9 |
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$ |
628.8 |
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43.7 |
% |
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43.7 |
% |
Other Americas |
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358.8 |
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415.5 |
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-13.6 |
% |
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-9.0 |
% |
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1,262.7 |
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1,044.3 |
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20.9 |
% |
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22.7 |
% |
Southern Europe: |
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France |
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1,238.2 |
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1,346.8 |
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-8.1 |
% |
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4.1 |
% |
Italy |
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454.3 |
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469.1 |
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-3.2 |
% |
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9.7 |
% |
Other Southern Europe |
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508.9 |
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606.5 |
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-16.1 |
% |
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-7.8 |
% |
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2,201.4 |
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2,422.4 |
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-9.1 |
% |
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2.2 |
% |
Northern Europe |
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1,027.1 |
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1,190.5 |
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-13.7 |
% |
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-2.4 |
% |
APME |
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603.7 |
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619.9 |
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-2.6 |
% |
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9.7 |
% |
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5,094.9 |
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5,277.1 |
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Intercompany Eliminations |
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(20.8 |
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— |
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5,074.1 |
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5,277.1 |
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-3.8 |
% |
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5.7 |
% |
Operating Unit Profit: |
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Americas: |
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United States |
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$ |
64.7 |
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$ |
38.0 |
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70.3 |
% |
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70.3 |
% |
Other Americas |
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16.2 |
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18.0 |
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-10.4 |
% |
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-4.1 |
% |
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80.9 |
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56.0 |
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44.4 |
% |
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46.4 |
% |
Southern Europe: |
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France |
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62.3 |
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65.7 |
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-5.2 |
% |
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7.5 |
% |
Italy |
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35.5 |
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31.7 |
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12.0 |
% |
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27.1 |
% |
Other Southern Europe |
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13.9 |
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17.9 |
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-22.6 |
% |
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-16.6 |
% |
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111.7 |
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115.3 |
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-3.2 |
% |
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9.1 |
% |
Northern Europe |
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10.8 |
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17.9 |
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-39.1 |
% |
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-29.9 |
% |
APME |
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22.5 |
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22.3 |
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0.8 |
% |
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15.8 |
% |
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225.9 |
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211.5 |
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Corporate expenses |
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(35.8 |
) |
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(37.3 |
) |
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Intangible asset amortization expense |
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(9.4 |
) |
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(4.3 |
) |
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Operating profit |
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180.7 |
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169.9 |
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6.3 |
% |
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18.1 |
% |
Interest and other expenses, net (b) |
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(6.7 |
) |
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(2.8 |
) |
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Earnings before income taxes |
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$ |
174.0 |
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$ |
167.1 |
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(a) In the United States, revenues from services include fees received from our franchise offices of $3.1 million and $3.0 million for the three months ended June 30, 2022 and 2021, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $128.1 million and $114.6 million for the three months ended June 30, 2022 and 2021, respectively.
(b) The components of interest and other expenses, net were:
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2022 |
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2021 |
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Interest expense |
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$ |
10.6 |
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$ |
9.7 |
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Interest income |
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(2.8 |
) |
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(3.1 |
) |
Foreign exchange loss |
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3.3 |
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0.6 |
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Miscellaneous income |
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(4.4 |
) |
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(4.4 |
) |
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$ |
6.7 |
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$ |
2.8 |
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ManpowerGroup
Results of Operations
(In millions, except per share data)
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Six Months Ended June 30 |
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% Variance |
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Amount |
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Constant |
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2022 |
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2021 |
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Reported |
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Currency |
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(Unaudited) |
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Revenues from services (a) |
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$ |
10,217.4 |
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$ |
10,201.5 |
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0.2 |
% |
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7.7 |
% |
Cost of services |
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8,399.1 |
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8,573.3 |
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-2.0 |
% |
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5.5 |
% |
Gross profit |
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1,818.3 |
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1,628.2 |
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11.7 |
% |
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19.2 |
% |
Selling and administrative expenses |
|
|
1,498.9 |
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1,359.9 |
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10.2 |
% |
|
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17.1 |
% |
Operating profit |
|
|
319.4 |
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268.3 |
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19.0 |
% |
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29.6 |
% |
Interest and other expenses, net |
|
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9.4 |
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8.2 |
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13.6 |
% |
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Earnings before income taxes |
|
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310.0 |
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260.1 |
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19.2 |
% |
|
|
29.5 |
% |
Provision for income taxes |
|
|
96.2 |
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|
86.5 |
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|
11.2 |
% |
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|
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Net earnings |
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$ |
213.8 |
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$ |
173.6 |
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|
|
23.2 |
% |
|
|
33.9 |
% |
Net earnings per share - basic |
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$ |
4.02 |
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$ |
3.17 |
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|
26.8 |
% |
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|
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Net earnings per share - diluted |
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$ |
3.97 |
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$ |
3.13 |
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26.8 |
% |
|
|
38.0 |
% |
Weighted average shares - basic |
|
|
53.2 |
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54.8 |
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-3.1 |
% |
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Weighted average shares - diluted |
|
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53.8 |
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55.5 |
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-3.0 |
% |
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ManpowerGroup
Operating Unit Results
(In millions)
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Six Months Ended June 30 |
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% Variance |
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Amount |
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Constant |
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2022 |
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2021 |
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Reported |
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Currency |
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(Unaudited) |
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Revenues from Services: |
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Americas: |
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|
||||
United States (a) |
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$ |
1,793.3 |
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$ |
1,237.6 |
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|
44.9 |
% |
|
|
44.9 |
% |
Other Americas |
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|
720.6 |
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|
809.6 |
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-11.0 |
% |
|
|
-7.5 |
% |
|
|
|
2,513.9 |
|
|
|
2,047.2 |
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22.8 |
% |
|
|
24.2 |
% |
Southern Europe: |
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|
||||
France |
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2,430.6 |
|
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|
2,535.7 |
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-4.1 |
% |
|
|
5.8 |
% |
Italy |
|
|
899.3 |
|
|
|
871.9 |
|
|
|
3.1 |
% |
|
|
13.8 |
% |
Other Southern Europe |
|
|
1,065.4 |
|
|
|
1,175.1 |
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|
|
-9.3 |
% |
|
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-2.7 |
% |
|
|
|
4,395.3 |
|
|
|
4,582.7 |
|
|
|
-4.1 |
% |
|
|
5.1 |
% |
Northern Europe |
|
|
2,121.6 |
|
|
|
2,324.3 |
|
|
|
-8.7 |
% |
|
|
-0.3 |
% |
APME |
|
|
1,221.9 |
|
|
|
1,247.3 |
|
|
|
-2.0 |
% |
|
|
7.8 |
% |
|
|
|
10,252.7 |
|
|
|
10,201.5 |
|
|
|
|
|
|
|
||
Intercompany Eliminations |
|
|
(35.3 |
) |
|
|
— |
|
|
|
|
|
|
|
||
|
|
|
10,217.4 |
|
|
|
10,201.5 |
|
|
|
0.2 |
% |
|
|
7.7 |
% |
Operating Unit Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Americas: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States |
|
$ |
123.0 |
|
|
$ |
67.2 |
|
|
|
83.0 |
% |
|
|
83.0 |
% |
Other Americas |
|
|
30.7 |
|
|
|
32.9 |
|
|
|
-6.7 |
% |
|
|
-2.0 |
% |
|
|
|
153.7 |
|
|
|
100.1 |
|
|
|
53.5 |
% |
|
|
55.1 |
% |
Southern Europe: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
France |
|
|
111.9 |
|
|
|
108.3 |
|
|
|
3.3 |
% |
|
|
14.4 |
% |
Italy |
|
|
64.5 |
|
|
|
51.1 |
|
|
|
26.3 |
% |
|
|
39.9 |
% |
Other Southern Europe |
|
|
30.5 |
|
|
|
29.3 |
|
|
|
4.0 |
% |
|
|
9.3 |
% |
|
|
|
206.9 |
|
|
|
188.7 |
|
|
|
9.6 |
% |
|
|
20.5 |
% |
Northern Europe |
|
|
14.1 |
|
|
|
22.7 |
|
|
|
-37.7 |
% |
|
|
-31.0 |
% |
APME |
|
|
41.5 |
|
|
|
41.1 |
|
|
|
0.8 |
% |
|
|
13.2 |
% |
|
|
|
416.2 |
|
|
|
352.6 |
|
|
|
|
|
|
|
||
Corporate expenses |
|
|
(77.8 |
) |
|
|
(74.5 |
) |
|
|
|
|
|
|
||
Intangible asset amortization expense |
|
|
(19.0 |
) |
|
|
(9.8 |
) |
|
|
|
|
|
|
||
Operating profit |
|
|
319.4 |
|
|
|
268.3 |
|
|
|
19.0 |
% |
|
|
29.6 |
% |
Interest and other expenses, net (b) |
|
|
(9.4 |
) |
|
|
(8.2 |
) |
|
|
|
|
|
|
||
Earnings before income taxes |
|
$ |
310.0 |
|
|
$ |
260.1 |
|
|
|
|
|
|
|
||
(a) In the United States, revenues from services include fees received from our franchise offices of $6.0 million and $6.1 million for the six months ended June 30, 2022 and 2021, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $238.9 million and $232.1 million for the six months ended June 30, 2022 and 2021, respectively.
(b) The components of interest and other expenses, net were:
|
|
2022 |
|
|
2021 |
|
||
Interest expense |
|
$ |
21.0 |
|
|
$ |
19.9 |
|
Interest income |
|
|
(5.6 |
) |
|
|
(6.2 |
) |
Foreign exchange loss |
|
|
5.1 |
|
|
|
3.1 |
|
Miscellaneous income |
|
|
(11.1 |
) |
|
|
(8.6 |
) |
|
|
$ |
9.4 |
|
|
$ |
8.2 |
|
ManpowerGroup
Consolidated Balance Sheets
(In millions)
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
|
|
(Unaudited) |
|
|||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
886.2 |
|
|
$ |
847.8 |
|
Accounts receivable, net |
|
|
5,343.9 |
|
|
|
5,448.2 |
|
Prepaid expenses and other assets |
|
|
171.8 |
|
|
|
126.7 |
|
Total current assets |
|
|
6,401.9 |
|
|
|
6,422.7 |
|
Other assets: |
|
|
|
|
|
|
||
Goodwill |
|
|
1,669.9 |
|
|
|
1,722.2 |
|
Intangible assets, net |
|
|
560.9 |
|
|
|
583.6 |
|
Operating lease right-of-use asset |
|
|
314.0 |
|
|
|
373.4 |
|
Other assets |
|
|
561.8 |
|
|
|
610.2 |
|
Total other assets |
|
|
3,106.6 |
|
|
|
3,289.4 |
|
Property and equipment: |
|
|
|
|
|
|
||
Land, buildings, leasehold improvements and equipment |
|
|
568.0 |
|
|
|
594.9 |
|
Less: accumulated depreciation and amortization |
|
|
458.0 |
|
|
|
478.1 |
|
Net property and equipment |
|
|
110.0 |
|
|
|
116.8 |
|
Total assets |
|
$ |
9,618.5 |
|
|
$ |
9,828.9 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
3,023.2 |
|
|
$ |
3,039.2 |
|
Employee compensation payable |
|
|
229.9 |
|
|
|
299.4 |
|
Accrued liabilities |
|
|
540.8 |
|
|
|
584.7 |
|
Accrued payroll taxes and insurance |
|
|
704.8 |
|
|
|
789.1 |
|
Value added taxes payable |
|
|
421.4 |
|
|
|
515.5 |
|
Short-term borrowings and current maturities of long-term debt |
|
|
481.0 |
|
|
|
552.6 |
|
Total current liabilities |
|
|
5,401.1 |
|
|
|
5,780.5 |
|
Other liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
942.2 |
|
|
|
565.7 |
|
Long-term operating lease liability |
|
|
222.2 |
|
|
|
275.8 |
|
Other long-term liabilities |
|
|
608.2 |
|
|
|
675.2 |
|
Total other liabilities |
|
|
1,772.6 |
|
|
|
1,516.7 |
|
Shareholders' equity: |
|
|
|
|
|
|
||
ManpowerGroup shareholders' equity |
|
|
|
|
|
|
||
Common stock |
|
|
1.2 |
|
|
|
1.2 |
|
Capital in excess of par value |
|
|
3,465.8 |
|
|
|
3,444.7 |
|
Retained earnings |
|
|
3,777.2 |
|
|
|
3,634.6 |
|
Accumulated other comprehensive loss |
|
|
(471.5 |
) |
|
|
(389.4 |
) |
Treasury stock, at cost |
|
|
(4,337.5 |
) |
|
|
(4,169.4 |
) |
Total ManpowerGroup shareholders' equity |
|
|
2,435.2 |
|
|
|
2,521.7 |
|
Noncontrolling interests |
|
|
9.6 |
|
|
|
10.0 |
|
Total shareholders' equity |
|
|
2,444.8 |
|
|
|
2,531.7 |
|
Total liabilities and shareholders' equity |
|
$ |
9,618.5 |
|
|
$ |
9,828.9 |
|
ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
|
|
Six Months Ended |
|
|||||
|
|
June 30, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(Unaudited) |
|
|||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
213.8 |
|
|
$ |
173.6 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
42.5 |
|
|
|
34.4 |
|
Loss on sale of a subsidiary |
|
|
8.0 |
|
|
|
— |
|
Deferred income taxes |
|
|
2.8 |
|
|
|
(13.3 |
) |
Provision for doubtful accounts |
|
|
6.1 |
|
|
|
9.2 |
|
Share-based compensation |
|
|
21.6 |
|
|
|
16.9 |
|
Changes in operating assets and liabilities, excluding the impact of dispositions: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(218.3 |
) |
|
|
(381.7 |
) |
Other assets |
|
|
(18.0 |
) |
|
|
(6.3 |
) |
Other liabilities |
|
|
(37.2 |
) |
|
|
362.6 |
|
Cash provided by operating activities |
|
|
21.3 |
|
|
|
195.4 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(41.7 |
) |
|
|
(24.6 |
) |
Acquisitions of businesses, net of cash acquired |
|
|
— |
|
|
|
(7.1 |
) |
Proceeds from the sale of subsidiaries and property and equipment |
|
|
1.0 |
|
|
|
0.9 |
|
Cash used in investing activities |
|
|
(40.7 |
) |
|
|
(30.8 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
Net change in short-term borrowings |
|
|
(3.9 |
) |
|
|
3.1 |
|
Repayments of revolving debt facility |
|
|
(25.0 |
) |
|
|
— |
|
Proceeds from long-term debt |
|
|
416.1 |
|
|
|
0.3 |
|
Repayments of long-term debt |
|
|
(2.5 |
) |
|
|
(2.2 |
) |
Payments for debt issuance costs |
|
|
(1.5 |
) |
|
|
— |
|
Proceeds from derivative settlement |
|
|
2.0 |
|
|
|
— |
|
Payments of contingent consideration for acquisitions |
|
|
(1.4 |
) |
|
|
(6.2 |
) |
Proceeds from share-based awards |
|
|
0.3 |
|
|
|
4.2 |
|
Payments to noncontrolling interests |
|
|
(1.0 |
) |
|
|
— |
|
Other share-based award transactions |
|
|
(8.1 |
) |
|
|
(4.6 |
) |
Repurchases of common stock |
|
|
(160.0 |
) |
|
|
(150.1 |
) |
Dividends paid |
|
|
(71.2 |
) |
|
|
(68.3 |
) |
Cash provided by (used in) financing activities |
|
|
143.8 |
|
|
|
(223.8 |
) |
Effect of exchange rate changes on cash |
|
|
(86.0 |
) |
|
|
(46.5 |
) |
Change in cash and cash equivalents |
|
|
38.4 |
|
|
|
(105.7 |
) |
Cash and cash equivalents, beginning of period |
|
$ |
847.8 |
|
|
$ |
1,567.1 |
|
Cash and cash equivalents, end of period |
|
$ |
886.2 |
|
|
$ |
1,461.4 |
|
July 19, 2022 ManpowerGroup Second Quarter Results Exhibit 99.2
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic uncertainty, the Russia-Ukraine war and other geopolitical uncertainty, financial and labor outlook, the Company’s strategic initiatives and technology investments, the positioning for future growth of our Talent Solutions brand, and the potential impacts of the COVID-19 pandemic 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, 2021, as well as the Company’s Quarterly Report on Form 10-Q for the quarter ended March 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.
Consolidated Financial Highlights Excludes the net impact of integration costs of $2.7M ($2.1M net of tax). EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortization of Intangible Assets. As Reported As Adjusted Q2 Financial Highlights -4% 6% CC 3% OCC -4% 6% CC 3% OCC Revenue $5.1B 190 bps 190 bps Gross Margin 18.2% 9% 21% CC 9% OCC 11% 22% CC 11% OCC EBITA $190M ($193M as adjusted) 40 bps 50 bps CC 20 bps OCC 50 bps 50 bps CC 30 bps OCC EBITA Margin 3.7% (3.8% as adjusted) 6% 18% CC 10% OCC 8% 20% CC 11% OCC Operating Profit $181M ($183M as adjusted) 40 bps 30 bps OCC 40 bps 30 bps OCC OP Margin 3.6% (3.6% as adjusted) 13% 26% CC 17% OCC 16% 28% CC 19% OCC EPS $2.29 ($2.33 as adjusted) (2) (2) (1)
EPS Bridge – Q2 vs. Guidance Midpoint
Business Line Revenue Q2 2022(1) Business line classifications can vary by entity and are subject to change as service requirements change. Experis continues strong trends, led by the U.S. where the acquisition integration is proceeding well Talent Solutions posting record revenue levels in market-leading RPO and strong performance in MSP Modest organic constant currency growth in Manpower Higher margin brands growing at double-digit organic constant currency growth rates MANPOWER EXPERIS TALENT SOLUTIONS
Consolidated Gross Margin Change
Trend Business Line Gross Profit – Q2 2022(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total Total Gross Profit $921M
SG&A Expense Bridge – Q2 YoY (in millions of USD) Reported and as adjusted ratios are unfavorably impacted 20 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A reported and as adjusted are 14.4% and 14.3% of revenue, respectively. (2)
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. Americas Segment (25% of Revenue) As Reported As Adjusted(1) Q2 Financial Highlights 21% 23% CC 4% OCC 21% 23% CC 4% OCC Revenue $1.3B 44% 46% CC 9% OCC 49% 51% CC 13% OCC OUP $81M ($84M as adjusted) 100 bps 20 bps OCC 120 bps 50 bps OCC OUP Margin 6.4% (6.6% as adjusted) Excludes the impact of integration costs of $2.7M in Q2 2022.
% of Segment Revenue Americas – Q2 Revenue Trend YoY Average Daily Revenue Trend OCC 12% CC (1) Impact reflects underlying business performance excluding U.S. Experis acquisition. (1)
As Reported Q2 Financial Highlights -9% Revenue $2.2B 2% CC -3% OUP $112M 9% CC 30 bps OUP Margin 5.1% Southern Europe Segment (43% of Revenue)
Southern Europe – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC
As Reported Q2 Financial Highlights -14% Revenue $1.0B -2% CC 0% OCC -39% OUP $11M -30% CC -26% OCC -40 bps OUP Margin 1.1% Northern Europe Segment (20% of Revenue)
Northern Europe – Q2 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC (1) (1) Impact reflects underlying business performance after adjusting for loss of revenues due to Russia sale.
As Reported Q2 Financial Highlights -3% Revenue $604M 10% CC 1% OUP $23M 16% CC 10 bps 20 bps CC OUP Margin 3.7% APME Segment (12% of Revenue)
APME – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC (1)
Cash Flow Summary – 6 Months YTD
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash) (1) Long term debt was temporarily increased by €400M on June 30th when we issued the €400M of Euro notes due 2027 to refinance the €400M of Euro notes scheduled to mature in September 2022. The notes due in September 2022 were repaid with cash in July 2022. Q2 adjusted total debt and total debt to capitalization columns reflect underlying debt and cash levels before the issuance on June 30th. (1) (1)
Debt and Credit Facilities – June 30, 2022 (in millions of USD) (4) (2)(3) €400M Euro note was repaid at par in July 2022 The $600M agreement requires that we comply with a Leverage Ratio (net 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 net Debt-to-EBITDA ratio of 1.22 to 1 and a fixed charge coverage ratio of 5.74 to 1 as of June 30, 2022. (In the agreement, net debt is defined as total debt less cash in excess of $400M.) As of June 30, 2022, there were $0.4M of standby letters of credit issued under the agreement. Under the $600M agreement, we have an option to increase the total availability under the facility by an additional $300M. Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $318.2M. Total subsidiary borrowings are limited to $300M due to restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are limited to $600M. This rate is the effective interest rate for this note, net of a favorable impact of a forward rate lock. Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 521 - Euro Notes - €400M 1.913% Sep 2022 419 - Euro Notes - €400M 3.514% Jun 2027 416 - Revolving Credit Agreement 2.404% May 2027 50 549 Uncommitted lines and Other Various Various 17 301 Total Debt 1,423 850 (1) (5)
Third Quarter 2022 Outlook EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortization of Intangible Assets. Estimates do not include third quarter impact of acquisition integration costs of approximately $4M to $6M. Revenue Total Down 2-6% (Up 4-8% CC) (Up 1-5% OCC) Americas Up 23-27% (25-29% CC) (6-10% OCC) Southern Europe Down 11-15% (Down 2%/Up 2% CC) Northern Europe Down 9-13% (Flat/Up 4% CC) (Up 3-7% OCC) APME Down 3-7% (Up 6-10% CC) Gross Profit Margin 18.0 – 18.2% EBITA(1) Margin 3.7 – 3.9% Operating Profit Margin 3.5 – 3.7% Tax Rate 30.0% EPS $2.19 – $2.27 (unfavorable $0.29 currency)
Our second quarter results reflect strong demand for our services across brands with revenue growth of 6% in constant currency Gross profit margin of 18.2% reflects good pricing environment, strong permanent recruitment activity and improved business mix Our Diversification, Digitization and Innovation initiatives continue to be executed well Recognized as a Star Performer and Global Leader in RPO for the 12th year by Everest Key Take Aways
Appendix
Industry Vertical Composition – Q2 2022 Manufacturing, 41.2%