ManpowerGroup Reports 4th Quarter 2022 Results
- Revenues of
$4.8 billion (-11% as reported, -1% constant currency (CC)) - Gross profit margin of 18.2%, up 100 basis points year over year reflecting business mix progress and solid permanent recruitment trends
- Talent Solutions experienced good revenue growth driven by RPO and Right Management
- Experis and Manpower revenue trends impacted by softening environment in
Europe andNorth America - Non-cash goodwill impairment charge of
$50 million in the fourth quarter - Repurchased
$25 million of common stock
The current year quarter included restructuring costs, final integration costs from the
Financial results in the quarter were also impacted by the stronger
We remain focused on continuing to accelerate our strategic priorities and advancing our Diversification, Digitization and Innovation initiatives across our organization throughout 2023. I want to thank all of our talented teams for their continued energy, passion and resilience – helping our clients achieve their business outcomes while finding meaningful and fulfilling work for millions of people.
We anticipate diluted earnings per share in the first quarter will be between
Net earnings for the year ended
In conjunction with its fourth quarter earnings release,
Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.
____________________________ |
1 The prior year period included acquisition transaction and integration costs which reduced earnings per share by |
2 This represented an |
3 The prior year period included acquisition transaction and integration costs which reduced earnings per share by |
About
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
Forward-Looking Statements
This press release contains statements, including statements regarding economic uncertainty, financial outlook, labor demand, supply-chain disruptions brought on by the
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.
Results of Operations |
||||
(In millions, except per share data) |
||||
Three Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from services (a) |
$ 4,809.2 |
$ 5,382.3 |
-10.6 % |
-0.9 % |
Cost of services |
3,933.6 |
4,456.0 |
-11.7 % |
-1.9 % |
Gross profit |
875.6 |
926.3 |
-5.5 % |
3.7 % |
Selling and administrative expenses, |
724.8 |
759.7 |
-4.6 % |
3.7 % |
|
50.0 |
- |
N/A |
N/A |
Selling and administrative expenses |
774.8 |
759.7 |
2.0 % |
10.7 % |
Operating profit |
100.8 |
166.6 |
-39.5 % |
-28.0 % |
Interest and other expenses, net |
10.5 |
4.2 |
153.5 % |
|
Earnings before income taxes |
90.3 |
162.4 |
-44.4 % |
-33.1 % |
Provision for income taxes |
41.6 |
51.3 |
-19.0 % |
|
Net earnings |
$ 48.7 |
$ 111.1 |
-56.2 % |
-47.3 % |
Net earnings per share - basic |
$ 0.96 |
$ 2.05 |
-53.2 % |
|
Net earnings per share - diluted |
$ 0.95 |
$ 2.02 |
-53.1 % |
-43.6 % |
Weighted average shares - basic |
50.8 |
54.2 |
-6.3 % |
|
Weighted average shares - diluted |
51.4 |
55.0 |
-6.5 % |
(a) Revenues from services include fees received from our franchise offices of |
||||
(b) The goodwill impairment charge for the three months ended |
|
||||
Operating Unit Results |
||||
(In millions) |
||||
Three Months Ended |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from Services: |
||||
|
||||
United States (a) |
$ 819.4 |
$ 860.8 |
-4.8 % |
-4.8 % |
Other Americas |
362.6 |
358.1 |
1.3 % |
13.0 % |
1,182.0 |
1,218.9 |
-3.0 % |
0.4 % |
|
|
||||
|
1,194.9 |
1,318.6 |
-9.4 % |
1.5 % |
|
412.5 |
467.1 |
-11.7 % |
-1.1 % |
Other Southern Europe |
493.8 |
595.8 |
-17.2 % |
-8.7 % |
2,101.2 |
2,381.5 |
-11.8 % |
-1.5 % |
|
|
972.6 |
1,179.6 |
-17.5 % |
-5.4 % |
APME |
578.5 |
622.6 |
-7.1 % |
8.3 % |
4,834.3 |
5,402.6 |
|||
Intercompany Eliminations |
(25.1) |
(20.3) |
||
$ 4,809.2 |
$ 5,382.3 |
-10.6 % |
-0.9 % |
|
Operating Unit Profit: |
||||
|
||||
|
$ 41.5 |
$ 40.6 |
2.4 % |
2.4 % |
Other Americas |
16.3 |
13.7 |
18.1 % |
37.2 % |
57.8 |
54.3 |
6.4 % |
11.2 % |
|
|
||||
|
58.2 |
63.6 |
-8.4 % |
2.8 % |
|
29.4 |
33.4 |
-12.0 % |
-1.5 % |
Other Southern Europe |
18.2 |
19.9 |
-9.1 % |
1.0 % |
105.8 |
116.9 |
-9.5 % |
1.3 % |
|
|
15.5 |
28.6 |
-45.5 % |
-33.6 % |
APME |
22.9 |
20.9 |
9.2 % |
29.0 % |
202.0 |
220.7 |
|||
Corporate expenses |
(42.2) |
(43.8) |
||
|
(50.0) |
- |
||
Intangible asset amortization expense |
(9.0) |
(10.3) |
||
Operating profit |
100.8 |
166.6 |
-39.5 % |
-28.0 % |
Interest and other expenses, net (c) |
(10.5) |
(4.2) |
||
Earnings before income taxes |
$ 90.3 |
$ 162.4 |
(a) In |
||||
(b) The goodwill impairment charge for the three months ended |
||||
(c) The components of interest and other expenses, net were: |
||||
2022 |
2021 |
|||
Interest expense |
$ 15.2 |
$ 9.3 |
||
Interest income |
(7.9) |
(2.9) |
||
Foreign exchange loss |
3.0 |
0.7 |
||
Miscellaneous expense (income), net |
0.2 |
(2.9) |
||
$ 10.5 |
$ 4.2 |
|
||||
Results of Operations |
||||
(In millions, except per share data) |
||||
Year End |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from services (a) |
$ 19,827.5 |
$ 20,724.4 |
-4.3 % |
4.9 % |
Cost of services |
16,255.1 |
17,316.9 |
-6.1 % |
3.1 % |
Gross profit |
3,572.4 |
3,407.5 |
4.8 % |
13.8 % |
Selling and administrative expenses, |
2,940.7 |
2,822.1 |
4.2 % |
12.4 % |
|
50.0 |
- |
N/A |
N/A |
Selling and administrative expenses |
2,990.7 |
2,822.1 |
6.0 % |
14.3 % |
Operating profit |
581.7 |
585.4 |
-0.6 % |
11.7 % |
Interest and other expenses, net |
24.6 |
17.3 |
42.4 % |
|
Earnings before income taxes |
557.1 |
568.1 |
-1.9 % |
10.2 % |
Provision for income taxes |
183.3 |
185.7 |
-1.3 % |
|
Net earnings |
$ 373.8 |
$ 382.4 |
-2.2 % |
9.9 % |
Net earnings per share - basic |
$ 7.17 |
$ 7.01 |
2.2 % |
|
Net earnings per share - diluted |
$ 7.08 |
$ 6.91 |
2.6 % |
15.3 % |
Weighted average shares - basic |
52.2 |
54.5 |
-4.4 % |
|
Weighted average shares - diluted |
52.8 |
55.4 |
-4.7 % |
(a) Revenues from services include fees received from our franchise offices of |
||||
(b) The goodwill impairment charge for the year ended |
|
||||
Operating Unit Results |
||||
(In millions) |
||||
Year End |
||||
% Variance |
||||
Amount |
Constant |
|||
2022 |
2021 |
Reported |
Currency |
|
(Unaudited) |
||||
Revenues from Services: |
||||
|
||||
United States (a) |
$ 3,499.3 |
$ 2,743.3 |
27.6 % |
27.6 % |
Other Americas |
1,436.4 |
1,520.4 |
-5.5 % |
0.9 % |
4,935.7 |
4,263.7 |
15.8 % |
18.1 % |
|
|
||||
|
4,785.0 |
5,171.3 |
-7.5 % |
4.0 % |
|
1,706.9 |
1,795.4 |
-4.9 % |
6.8 % |
Other Southern Europe |
2,044.4 |
2,380.1 |
-14.1 % |
-6.2 % |
8,536.3 |
9,346.8 |
-8.7 % |
2.0 % |
|
|
4,048.3 |
4,670.5 |
-13.3 % |
-2.5 % |
APME |
2,387.3 |
2,481.1 |
-3.8 % |
9.0 % |
19,907.6 |
20,762.1 |
|||
Intercompany Eliminations |
(80.1) |
(37.7) |
||
$ 19,827.5 |
$ 20,724.4 |
-4.3 % |
4.9 % |
|
Operating Unit Profit: |
||||
|
||||
|
$ 219.2 |
$ 136.0 |
61.2 % |
61.2 % |
Other Americas |
63.4 |
59.2 |
7.0 % |
16.5 % |
282.6 |
195.2 |
44.8 % |
47.7 % |
|
|
||||
|
226.7 |
233.5 |
-2.9 % |
9.4 % |
|
122.9 |
115.3 |
6.6 % |
20.0 % |
Other Southern Europe |
63.4 |
67.5 |
-6.1 % |
1.6 % |
413.0 |
416.3 |
-0.8 % |
11.1 % |
|
|
42.4 |
67.8 |
-37.4 % |
-26.2 % |
APME |
87.8 |
84.6 |
3.6 % |
19.8 % |
825.8 |
763.9 |
|||
Corporate expenses |
(157.0) |
(154.3) |
||
|
(50.0) |
- |
||
Intangible asset amortization expense |
(37.1) |
(24.2) |
||
Operating profit |
581.7 |
585.4 |
-0.6 % |
11.7 % |
Interest and other expenses, net (c) |
(24.6) |
(17.3) |
||
Earnings before income taxes |
$ 557.1 |
$ 568.1 |
(a) In |
||||
(b) The goodwill impairment charge for the year ended |
||||
(c) The components of interest and other expenses, net were: |
||||
2022 |
2021 |
|||
Interest expense |
$ 46.9 |
$ 38.8 |
||
Interest income |
(17.9) |
(12.0) |
||
Foreign exchange loss |
11.9 |
5.2 |
||
Miscellaneous income |
(16.3) |
(14.7) |
||
$ 24.6 |
$ 17.3 |
|
|||
Consolidated Balance Sheets |
|||
(In millions) |
|||
|
|
||
2022 |
2021 |
||
(Unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 639.0 |
$ 847.8 |
|
Accounts receivable, net |
5,137.4 |
5,448.2 |
|
Prepaid expenses and other assets |
158.0 |
126.7 |
|
Total current assets |
5,934.4 |
6,422.7 |
|
Other assets: |
|||
|
1,628.1 |
1,722.2 |
|
Intangible assets, net |
549.5 |
583.6 |
|
Operating lease right-of-use asset |
365.7 |
373.4 |
|
Other assets |
540.5 |
610.2 |
|
Total other assets |
3,083.8 |
3,289.4 |
|
Property and equipment: |
|||
Land, buildings, leasehold improvements and equipment |
584.9 |
594.9 |
|
Less: accumulated depreciation and amortization |
472.7 |
478.1 |
|
Net property and equipment |
112.2 |
116.8 |
|
Total assets |
$ 9,130.4 |
$ 9,828.9 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 2,831.4 |
$ 3,039.2 |
|
Employee compensation payable |
271.7 |
299.4 |
|
Accrued liabilities |
582.7 |
584.7 |
|
Accrued payroll taxes and insurance |
746.7 |
789.1 |
|
Value added taxes payable |
462.7 |
515.5 |
|
Short-term borrowings and current maturities of long-term debt |
26.6 |
552.6 |
|
Total current liabilities |
4,921.8 |
5,780.5 |
|
Other liabilities: |
|||
Long-term debt |
959.9 |
565.7 |
|
Long-term operating lease liability |
266.6 |
275.8 |
|
Other long-term liabilities |
524.0 |
675.2 |
|
Total other liabilities |
1,750.5 |
1,516.7 |
|
Shareholders' equity: |
|||
|
|||
Common stock |
1.2 |
1.2 |
|
Capital in excess of par value |
3,484.2 |
3,444.7 |
|
Retained earnings |
3,868.5 |
3,634.6 |
|
Accumulated other comprehensive loss |
(458.7) |
(389.4) |
|
|
(4,447.9) |
(4,169.4) |
|
Total ManpowerGroup shareholders' equity |
2,447.3 |
2,521.7 |
|
Noncontrolling interests |
10.8 |
10.0 |
|
Total shareholders' equity |
2,458.1 |
2,531.7 |
|
Total liabilities and shareholders' equity |
$ 9,130.4 |
$ 9,828.9 |
|
|||
Consolidated Statements of Cash Flows |
|||
(In millions) |
|||
Year Ended |
|||
|
|||
2022 |
2021 |
||
(Unaudited) |
|||
Cash Flows from Operating Activities: |
|||
Net earnings |
$ 373.8 |
$ 382.4 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||
Depreciation and amortization |
84.6 |
73.4 |
|
Loss on sales of subsidiaries, net |
6.0 |
- |
|
Non-cash goodwill impairment charge |
50.0 |
- |
|
Deferred income taxes |
4.8 |
(1.3) |
|
Provision for doubtful accounts |
6.2 |
17.9 |
|
Share-based compensation |
37.6 |
36.8 |
|
Changes in operating assets and liabilities: |
|||
Accounts receivable |
28.8 |
(640.9) |
|
Other assets |
47.5 |
79.0 |
|
Other liabilities |
(216.0) |
697.5 |
|
Cash provided by operating activities |
423.3 |
644.8 |
|
Cash Flows from Investing Activities: |
|||
Capital expenditures |
(75.6) |
(64.2) |
|
Acquisitions of businesses, net of cash acquired |
(16.4) |
(924.4) |
|
Proceeds from the sales of subsidiaries and property and equipment |
6.7 |
1.6 |
|
Cash used in investing activities |
(85.3) |
(987.0) |
|
Cash Flows from Financing Activities: |
|||
Net change in short-term borrowings |
7.2 |
(3.0) |
|
Net (repayments) proceeds of revolving debt facility |
(75.0) |
75.0 |
|
Proceeds from long-term debt |
421.3 |
0.5 |
|
Repayments of long-term debt |
(412.2) |
(2.2) |
|
Payments for debt issuance costs |
(2.4) |
- |
|
Proceeds from derivative settlement |
2.0 |
- |
|
Payments of contingent consideration for acquisitions |
(3.8) |
(6.3) |
|
Proceeds from share-based awards |
0.3 |
5.1 |
|
Payments to noncontrolling interests |
(1.1) |
(1.2) |
|
Other share-based award transactions |
(8.5) |
(5.0) |
|
Repurchases of common stock |
(270.0) |
(210.0) |
|
Dividends paid |
(139.9) |
(136.6) |
|
Cash used in financing activities |
(482.1) |
(283.7) |
|
Effect of exchange rate changes on cash |
(64.7) |
(93.4) |
|
Change in cash and cash equivalents |
(208.8) |
(719.3) |
|
Cash and cash equivalents, beginning of period |
847.8 |
1,567.1 |
|
Cash and cash equivalents, end of period |
$ 639.0 |
$ 847.8 |
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SOURCE
Nick Hengst, +1.414.906.7356, nicholas.hengst@manpowergroup.com