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): February 15, 2000
MANPOWER INC.
(Exact name of registrant as specified in its charter)
Wisconsin 1-10686 39-1672779
(State or other jurisdiction (Commission file number) (IRS Employer
of incorporation) Identification No.)
5301 North Ironwood Road
Milwaukee, Wisconsin 53217
(Address of principal executive offices)
Registrant's telephone number, including area code: (414) 961-1000
Item 5. Other Events.
On February 15, 2000, Manpower Inc. (the "Company") announced
its financial results for the fourth quarter and year ended
December 31, 1999. The Company's press release issued February 15, 2000 is
attached as an exhibit to this report and is incorporated herein
by reference (except for references to the Company's website or
information contained herein). The Company is also making available certain
operating unit results for the three months and years ended
December 31, 1999 and 1998.
Item 7. Exhibits.
Exhibit No. Description
99.1 Press Release dated February 15, 2000
99.2 Operating Unit Results
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.
MANPOWER INC.
Date: February 15, 2000 /s/ Michael J. Van Handel
-----------------------------
Michael J. Van Handel
Senior Vice President - Chief Financial
Officer and Secretary
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated February 15, 2000
99.2 Operating Unit Results
Exhibit 99.1
MANPOWER INC.
FOR IMMEDIATE RELEASE FEBRUARY 15, 2000
Manpower Reports Strong 4th Quarter, Full-Year 1999 Results
Earnings per share rise 19% for 4th quarter, 16% for 1999
Systemwide sales rise by $1 billion, to $11.5 billion
Milwaukee, February 15, 2000 - Manpower Inc. (NYSE:MAN)
today reported that net income for the year ended December 31,
1999, rose 13 percent to $150.0 million, or $1.91 per diluted
share, from $132.8 million, or $1.64 per diluted share a year
earlier. Results for 1998 exclude a one-time charge related to
the write-down of capitalized software recorded in the fourth
quarter.
For the fourth quarter of 1999, net income rose 16 percent
to $48.8 million, or 63 cents per diluted share, from $42.0
million, or 53 cents per diluted share, a year earlier, again
excluding the one-time fourth quarter 1998 charge.
"Our continued growth in the quarter was fueled by strong
gains in Europe and good expense control in the U.S.," President
and Chief Executive Officer Jeffrey A. Joerres said. "Revenues
from our investments in fast-growing markets in Germany, Sweden
and Spain grew by 46 percent in constant currencies, while
operating profits grew even faster. In France, local-currency
revenues were up 16 percent, while operating profits were up 64
percent, thanks to improved pricing and efficiencies. And in the
U.S., 6 percent revenue growth combined with good expense control
drove operating profits 8 percent higher.
"We set aggressive performance targets for 1999 and achieved
them," Joerres said. "We're entering 2000 with solid momentum,
and barring major shifts in the global economy, we are looking
forward to continued growth this year."
Systemwide sales for 1999 rose 9 percent from the previous
year to $11.5 billion. For the fourth quarter, systemwide sales
increased 10 percent to $3.1 billion.
This press release contains statements that are forward
looking in nature and, accordingly, are subject to risks and
uncertainties regarding the Company's expected future financial
results. The Company's actual results may differ materially from
those described or contemplated. 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 Company's Annual Report
on Form 10-K for the year ended December 31, 1998.
Manpower provides staffing services and workforce management
solutions to a wide variety of customers through more than 3,300
offices in 52 countries. The company annually provides
employment and training to more than 2 million people worldwide.
More information, including recent news releases, can be found at
the company's web site, www.manpower.com.
Manpower Inc.
Results of Operations
(in thousands, except per share data)
3 Months Ended December 31 Year Ended December 31
1999 1998 Variance 1999 1998 Variance
Systemwide sales $3,121,373 $2,850,917 9.5% $11,511,350 $10,523,377 9.4%
Revenue from
services 2,660,497 2,427,553 9.6% 9,770,098 8,814,272 10.8%
Cost of
services 2,192,292 2,010,404 9.0% 8,065,179 7,311,278 10.3%
Gross profit 468,205 417,149 12.2% 1,704,919 1,502,994 13.4%
Selling and
administrative
expenses 384,598 347,053 10.8% 1,474,268 1,280,491 15.1%
Write-down of
capitalized software - 92,100 N/A - 92,100 N/A
Operating profit 83,607 (22,004) N/A 230,651 130,403 76.9%
Interest and other
expenses (income) 7,828 4,975 57.3% 24,821 16,633 49.2%
Earnings before
income taxes 75,779 (26,979) N/A 205,830 113,770 80.9%
Provision for
income taxes 27,010 (11,859) N/A 55,804 38,106 46.4%
Net earnings $48,769 $(15,120) N/A $150,026 $75,664 98.3%
Net earnings per
share - basic $0.64 $(0.19) N/A $1.94 $0.94 105.5%
Net earnings per
share - diluted $0.63 $(0.19) N/A $1.91 $0.93 104.5%
Weighted average
shares - basic 75,996 78,994 (3.8%) 77,276 80,101 (3.5%)
Weighted average
shares - diluted 77,694 78,994 (1.6%) 78,728 81,196 (3.0%)
Manpower Inc.
Condensed Balance Sheets
(unaudited - in thousands)
December 31, December 31,
1999 1998
Current assets:
Cash and cash equivalents $241,675 $180,456
Accounts receivable 1,897,553 1,674,729
Prepaid expenses and other assets 118,094 106,377
Total current assets 2,257,322 1,961,562
Other assets 278,976 238,914
Property and equipment 182,355 191,260
Total assets $2,718,653 $2,391,736
Current liabilities:
Payable to banks $127,949 $99,268
Accounts payable 387,872 347,864
Employee compensation payable 71,895 77,084
Accrued liabilities 168,346 154,428
Accrued payroll taxes and insurance 340,937 319,053
Income taxes and VAT payable 317,463 309,283
Current maturities of long-term debt 3,574 4,076
Total current liabilities 1,418,036 1,311,056
Other liabilities:
Long-term debt 357,530 154,594
Other long-term liabilities 292,441 257,148
Total other liabilities 649,971 411,742
Stockholders' equity 650,646 668,938
Total liabilities and
stockholders' equity $2,718,653 $2,391,736
Manpower Inc.
Operating Unit Results
(in thousands)
3 Months Ended Year Ended
December 31 December 31
1999 1998 1999 1998
Revenues from services:
United States (a) $ 591,016 $556,785 $2,250,483 $2,152,822
France $1,008,574 986,884 3,775,105 3,639,483
United Kingdom 326,666 299,191 1,170,270 1,088,218
Other Europe 432,203 349,881 1,517,197 1,152,574
Other Countries 302,038 234,812 1,057,043 781,175
---------------------- -----------------------
$2,660,497 $2,427,553 $9,770,098 $8,814,272
====================== =======================
Operating Unit Profit:
United States $ 23,436 $ 21,622 $ 80,270 $ 78,005
France 32,611 22,579 100,910 76,959
United Kingdom 12,783 15,147 40,224 42,280
Other Europe 21,396 17,307 63,210 49,197
Other Countries 4,425 4,601 16,539 20,953
---------------------- -----------------------
94,651 81,256 301,153 267,394
Other corporate expenses (11,044) (11,160) (42,502) (44,891)
Non-recurring expenses (b) - - (28,000) -
Write-down of capitalized
software (c) - (92,100) - (92,100)
---------------------- -----------------------
Operating profit 83,607 (22,004) 230,651 130,403
Interest and other
expense (d) 7,828 4,975 24,821 16,633
---------------------- -----------------------
Earnings before taxes $ 75,779 $ (26,979) $ 205,830 $ 113,770
====================== =======================
Footnotes:
(a) Total systemwide sales in the United States, which includes sales
of Company-owned branches and franchises were $992,210 and
$919,251 for the three months ended December 31, 1999 and
1998, respectively, and $3,758,690 and $3,577,192 for the year ended
December 31, 1999 and 1998, respectively.
(b) Represents non-recurring items ($16.4 after tax) in the second quarter
of 1999 related to employee severances, retirement costs and other
associated realignment costs.
(c) The write-down of capitalized software relates to the abandonment of an
information system that was being developed in the U.S.
(d) The components of interest and other expense (income) were:
Interest expense $4,622 $5,984 $17,315 $19,155
Interest income (2,299) (2,182) (8,028) (8,379)
Translation
loss (gain) 933 (599) 1,918 2,425
Loss on sale of
accounts receivable 2,693 658 9,780 658
Other 1,879 1,114 3,836 2,774
-------------------- -------------------
$7,828 $4,975 $24,821 $16,633
==================== ===================