- Good revenue growth and record levels of permanent recruitment activity, resulting in 4% revenue increase (10% constant currency (CC)) and gross profit margin of 17.4%
- Strong performance of higher margin brands during the quarter with Experis recording 31% revenue growth (15% organic CC) and Talent Solutions 10% revenue growth (13% CC). Manpower delivered solid growth (-2% as reported; +5% organic CC)
- Improved profitability with expanded EBITA and operating profit margins during the quarter
- Significant growth in earnings per share year over year
- Company repurchased $60 million of common stock during the quarter; reduced incremental acquisition debt from $75 million to $50 million
MILWAUKEE, April 19, 2022 /PRNewswire/ -- ManpowerGroup MAN today reported net earnings of $1.68 per diluted share for the three months ended March 31, 2022 compared to $1.11 per diluted share in the prior year period. Net earnings in the quarter were $91.6 million compared to $62.0 million a year earlier. Revenues for the first quarter were $5.1 billion, a 4% increase from the prior year period.
The current year quarter included integration costs from the U.S. Experis acquisition and the net loss related to the sale of our Russia business in January. These costs reduced earnings per share by $0.20 in the current quarter. Excluding these costs, earnings per share was $1.88 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 10 cent negative impact to earnings per share in the quarter compared to the prior year. On a constant currency basis, revenues increased 10% (6% organic constant currency) compared to the prior year period. Excluding the net impact of integration costs and the loss from our Russia disposition, on a constant currency basis net earnings per diluted share increased 64% during the quarter.
Jonas Prising, ManpowerGroup Chairman & CEO, said, "Our first quarter results demonstrate very good execution of our strategic initiatives to improve our business mix and strong demand for our higher margin offerings. Even with the tragic events unfolding in Ukraine we continue to see good growth opportunities overall for our staffing and workforce solutions services in Europe as well as globally.
I am very proud of how our ManpowerGroup teams are bringing our values to life, especially in Poland and neighboring European countries: providing immediate humanitarian support to refugees from Ukraine, acting swiftly to assess, reskill and match them to employment opportunities, and working closely with our clients to advise and redefine roles to help people find work and start new lives.
Overall, we made good progress during the first quarter and believe that our focus on profitable growth positions us well in 2022.
We anticipate diluted earnings per share in the second quarter will be between $2.31 and $2.39, which includes an estimated unfavorable currency impact of 19 cents. Our guidance excludes expected integration costs ranging from $4 million to $6 million."
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 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/.
ManpowerGroup® 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.
This news release contains statements, including statements regarding economic and geopolitical uncertainty, 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, which information is incorporated herein by reference.
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
Revenues from services (a)
Cost of services
Selling and administrative expenses
Interest and other expenses, net
Earnings before income taxes
Provision for income taxes
Net earnings per share - basic
Net earnings per share - diluted
Weighted average shares - basic
Weighted average shares - diluted
(a) Revenues from services include fees received from our franchise offices of $3.6 million for both
Operating Unit Results
Three Months Ended March 31
Revenues from Services:
United States (a)
Other Southern Europe
Operating Unit Profit:
Other Southern Europe
Intangible asset amortization expense
Interest and other expenses, net (b)
Earnings before income taxes
(a) In the United States, revenues from services include fees received from our franchise offices of $2.9 million and $3.1
(b) The components of interest and other expenses, net were:
Foreign exchange loss
Consolidated Balance Sheets
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses and other assets
Total current assets
Intangible assets, net
Operating lease right-of-use asset
Total other assets
Property and equipment:
Land, buildings, leasehold improvements and equipment
Less: accumulated depreciation and amortization
Net property and equipment
LIABILITIES AND SHAREHOLDERS' EQUITY
Employee compensation payable
Accrued payroll taxes and insurance
Value added taxes payable
Short-term borrowings and current maturities of long-term debt
Total current liabilities
Long-term operating lease liability
Other long-term liabilities
Total other liabilities
ManpowerGroup shareholders' equity
Capital in excess of par value
Accumulated other comprehensive loss
Treasury stock, at cost
Total ManpowerGroup shareholders' equity
Total shareholders' equity
Total liabilities and shareholders' equity
Consolidated Statements of Cash Flows
Three Months Ended
Cash Flows from Operating Activities:
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
Non-cash loss on sale of a subsidiary
Deferred income taxes
Provision for doubtful accounts
Changes in operating assets and liabilities, excluding the impact of dispositions:
Cash provided by operating activities
Cash Flows from Investing Activities:
Acquisitions of businesses, net of cash acquired
Proceeds from the sale of subsidiaries and property and equipment
Cash used in investing activities
Cash Flows from Financing Activities:
Net change in short-term borrowings
Repayments of revolving debt facility
Proceeds from long-term debt
Repayments of long-term debt
Payments of contingent consideration for acquisitions
Proceeds from share-based awards
Other share-based award transactions
Repurchases of common stock
Cash used in financing activities
Effect of exchange rate changes on cash
Change in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
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