Manpowergroup Reports 1St Quarter 2021 Results

The following excerpt is from the company's SEC filing.
7% revenue increase in the quarter (1% increase on a constant currency basis)
All three of our brands experienced sequential quarterly improvement in year-over-year revenues, led by Manpower and Talent Solutions both with growth in the quarter and Experis with ongoing improvement in the revenue trend
Operating profit of $98 million in the quarter, a reported increase of 161% year-over-year (8% increase in constant currency excluding restructuring charges in the prior year)
$100 million of common stock repurchased during the quarter
Accounts receivable collection trend improving further, ended the quarter wi th almost four days of DSO improvement year-over-year
MILWAUKEE, April 20, 2021 --
ManpowerGroup (NYSE: MAN) today reported net earnings of $1.11 per diluted share for the three months ended March 31, 2021 compared to $0.03 per diluted share in the prior year period.  Net earnings in the quarter were $62.0 million compared to $1.7 million a year earlier.  Revenues for the first quarter were $4.9 billion, a 7% increase from the prior year period.  
Financial
results
impacted
weaker
dollar
relative
foreign currencies
period. Earnings per share in the quarter were positively impacted by 6 cents due to changes in foreign currencies compared to the prior year.  On a constant currency basis, revenues increased 1% compared to the prior year period. Excluding the prior year impacts of restructuring costs and a pension settlement charge, on a constant currency basis, net earnings per diluted share increased 28% during the quarter.
Days Sales Outstanding improved by 3.7 days year over year reflecting our continued focus on collections and working capital efficiency.  
Jonas Prising, ManpowerGroup Chairman & CEO, said, “Our first quarter results reflect a continuation of the global recovery coupled with a strong execution of our strategic initiatives.  Despite increased restrictions in many key markets, we saw improving momentum for all of our brands
The combination of technology investments and our people-first approach is allowing us to confidently manage global uncertainty, deliver locally and collaborate remotely
We are
pleased with the progress made during the first quarter of 2021 and remain confident that our Diversification, Digitization and Innovation initiatives are positioning ManpowerGroup for greater profitable growth in the future.
We anticipate diluted earnings per share in the second quarter will be between $1.36 and $1.44, which includes an estimated favorable currency impact of 10 cents.”
In conjunction with its first quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on April 20, 2021 at 7:30 a.m. CST (8:30 a.m. EST). 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
About ManpowerGroup
ManpowerGroup® (NYSE: 
), 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 2021 ManpowerGroup was named one of the World's Most Ethical Companies for the 12
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 uncertainty, the global recovery, financial outlook, the Company’s strategic initiatives and technology investments and its positioning for future growth, as well as 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, 2020, which information is incorporated herein by reference.
Results of Operations
(In millions, except per share data)
Three Months Ended March 31
% Variance
Amount
Constant
Reported
Currency
(Unaudited)
Revenues from services (a)
4,924.4
4,619.1
Cost of services
4,156.3
3,895.1
Gross profit
Selling and administrative expenses
Interest and other expenses, net
Earnings before income taxes
Provision for income taxes
3562.0
3361.0
Net earnings per share - basic
3633.3
Net earnings per share - diluted
3600.0
3400.0
Weighted average shares - basic
Weighted average shares - diluted
Revenues from services include fees received from our franchise offices of $3.6 million and $3.3 million for the three months ended March 31, 2021 and 2020, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $249.1 million and $82.3 million for the three months ended March 31, 2021 and 2020, respectively.
Operating Unit Results
(In millions)
Revenues from Services:
Americas:
United States  (a)
Other Americas
1,002.9
1,011.0
Southern Europe:
France
1,188.9
1,093.8
Other Southern Europe
2,160.3
1,944.7
Northern Europe
1,133.8
1,068.5
Operating Unit Profit:
1164.4
1184.5
1094.6
Corporate expenses
Intangible asset amortization expense
Interest and other expenses, net (b)
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 March 31, 2021 and 2020, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $117.5 million and $76.5 million for the three months ended March 31, 2021 and 2020, respectively.
The components of interest and other expenses, net were:
Interest expense
Interest income
Foreign exchange loss
Miscellaneous (income) expense, net
Consolidated Balance Sheets
Mar. 31
Dec.31
ASSETS
Current assets:
Cash and cash equivalents
1,522.7
1,567.1
Accounts receivable, net
4,888.8
4,912.4
Prepaid expenses and other assets
Total current assets
6,610.6
6,666.4
Other assets:
Goodwill
1,215.0
1,225.8
Intangible assets, net
Operating lease right-of-use asset
Total other assets
2,493.5
2,526.7
Property and equipment:
Land, buildings, leasehold improvements and equipment
Less: accumulated depreciation and amortization
Net property and equipment
Total assets
9,230.7
9,328.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
2,723.4
2,527.4
Employee compensation payable
Accrued liabilities
Accrued payroll taxes and insurance
Value added taxes payable
Short-term borrowings and current maturities of long-term debt
Total current liabilities
4,736.6
4,684.8
Other liabilities:
Long-term debt
1,057.5
1,103.5
Long-term operating lease liability
Other long-term liabilities
Total other liabilities
2,116.7
2,189.8
Shareholders' equity:
ManpowerGroup shareholders' equity
Common stock
Capital in excess of par value
3,411.0
3,402.5
Retained earnings
3,450.8
3,388.8
Accumulated other comprehensive loss
(437.8
(397.3
Treasury stock, at cost
(4,058.9
(3,954.2
Total ManpowerGroup shareholders' equity
2,366.3
2,441.0
Noncontrolling interests
Total shareholders' equity
2,377.4
2,453.6
Total liabilities and shareholders' equity
Consolidated Statements of Cash Flows
Cash Flows from Operating Activities:
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
Non-cash operating lease right-of-use assets impairment
Deferred income taxes
Provision for doubtful accounts
Share-based compensation
Changes in operating assets and liabilities, excluding the impact of acquisitions:
(230.6
Cash provided by operating activities
Cash Flows from Investing Activities:
Capital expenditures
Acquisitions of businesses, net of cash acquired
Proceeds from investments, property and equipment
Cash used in investing activities
Cash Flows from Financing Activities:
Net change in short-term borrowings
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
(100.1
Cash used in financing activities
(106.0
Effect of exchange rate changes on cash
Change in cash and cash equivalents
Cash and cash equivalents, beginning of period
1,025.8
Cash and cash equivalents, end of period
1,099.5

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever ManpowerGroup makes a similar move, sign up!

Other recent filings from the company include the following:

Manpowergroup Reports 2Nd Quarter 2021 Results - July 20, 2021

Auto Refresh

Feedback