EXHIBIT 99.1
[MANPOWER LOGO]
PRESS RELEASE
FOR FURTHER INFORMATION
CONTACT:
Mike Van Handel
Chief Financial Officer
(414) 906-6305
FOR IMMEDIATE RELEASE
MANPOWER REPORTS 1ST QUARTER RESULTS
MILWAUKEE, WI, USA, April 15, 2003 - Manpower Inc. (NYSE: MAN) today reported
that net income for the three months ended March 31, 2003 was $14.9 million, or
19 cents per diluted share, an increase of 116 percent, from $6.9 million, or 9
cents per diluted share, a year earlier. Revenues for the first quarter were
$2.7 billion, an increase of 17 percent from the year-earlier period. Systemwide
sales were $2.9 billion. Results for the first quarter were positively impacted
by relatively stronger foreign currencies compared to the first quarter of 2002.
On a constant currency basis, earnings per share increased 44 percent on a 3
percent improvement in revenues.
"The Manpower team around the world continues to make progress, despite
the downward economic pressure," Manpower Chairman and CEO, Jeffrey A. Joerres,
said. "We executed well in all geographies and our results reflect that. Despite
the paralysis of the economy, we were able to achieve growth in both revenue and
profit.
"The intra-quarter trends, as well as the figures from the first few
weeks in April, indicate that demand for our customers' products and services
have stalled, therefore, we are entering the second quarter with caution,"
Joerres stated. "Given the current trends, we anticipate our second quarter
earnings per share to be in the range of 31 to 35 cents, which includes an
estimated favorable currency impact of 6 cents."
-MORE-
MANPOWER REPORTS 1ST QUARTER/PAGE 2
In conjunction with its first quarter earnings release, Manpower will
broadcast its conference call live over the Internet on April 15, 2003 at 7:30
a.m. CDT (8:30 a.m. EDT). Interested parties are invited to listen by logging on
to http://investor.manpower.com.
The Systemwide Sales and constant currency amounts included in this
press release are further explained on the attached Results of Operations.
Manpower Inc. is a world leader in the staffing industry, providing
workforce management services and solutions to customers through over 3,900
offices in 63 countries. The firm annually provides employment to 2 million
people worldwide and is an industry leader in employee assessment and training.
Manpower also provides a range of staffing solutions, engagement and consulting
services worldwide under the subsidiary brands of Brook Street, Elan, The
Empower Group and Jefferson Wells. More information on Manpower Inc. can be
found at the company's Web site, www.manpower.com.
This news release contains statements, including earnings projections,
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. 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 its Annual
Report on Form 10K for the year ended December 31, 2002, which information is
incorporated herein by reference, and such other factors as may be described
from time to time in the Company's SEC filings.
# # #
Manpower Inc.
Results of Operations
(In millions, except per share data)
THREE MONTHS ENDED MARCH 31
-----------------------------------------------------
% VARIANCE
-----------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
-----------------------------------------------------
(Unaudited)
Systemwide sales (a) $2,939.4 $2,540.0 15.7%
- ------------------------------------------------------------------------------------------------
Revenue from services 2,678.7 2,284.0 17.3% 3.4%
Cost of services 2,212.7 1,869.2 18.4%
----------------------------
Gross profit 466.0 414.8 12.3% -1.2%
Selling and administrative expenses 433.0 396.1 9.3% -3.1%
----------------------------
Operating profit 33.0 18.7 76.5% 38.8%
Interest and other expenses 8.6 8.0 8.5%
----------------------------
Earnings before income taxes 24.4 10.7 126.7%
Provision for income taxes 9.5 3.8 145.6%
----------------------------
Net earnings $ 14.9 $ 6.9 116.1% 48.1%
============================
Net earnings per share - basic $ 0.19 $ 0.09 111.1%
============================
Net earnings per share - diluted $ 0.19 $ 0.09 111.1% 44.4%
============================
Weighted average shares - basic 77.3 76.1 1.6%
============================
Weighted average shares - diluted 77.9 77.3 0.7%
============================
(a) Systemwide sales represents revenue from our branch offices plus the sales
activity of locations operating under a franchise agreement with us.
Systemwide sales is calculated as follows:
Revenue from services $2,678.7 $2,284.0
Less: Franchise fees 6.0 6.4
Add: Franchise sales 266.7 262.4
----------------------------
Systemwide sales $2,939.4 $2,540.0
============================
Manpower Inc.
Operating Unit Results
(In millions)
THREE MONTHS ENDED MARCH 31
-------------------------------------------------------
% VARIANCE
------------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
-------------------------------------------------------
(Unaudited)
Revenues from services:
United States (a) $ 463.5 $ 428.7 8.1% 8.1%
France 954.6 767.1 24.4% 1.6%
EMEA 886.4 764.2 16.0% -1.6%
Other Operations 374.2 324.0 15.5% 12.9%
-----------------------------
$ 2,678.7 $ 2,284.0 17.3% 3.4%
=============================
Operating Unit Profit:
United States $ 2.7 $ (4.9) N/A N/A
France 26.9 22.2 21.5% -1.0%
EMEA 9.8 11.0 -10.6% -25.0%
Other Operations 2.4 (1.8) N/A N/A
-----------------------------
41.8 26.5
Corporate expenses 8.8 7.8
Amortization of intangibles - -
-----------------------------
Operating profit 33.0 18.7 76.5% 38.8%
Interest and other expense (b) 8.6 8.0
-----------------------------
Earnings before taxes $ 24.4 $ 10.7
=============================
(a) Systemwide sales in the United States represents revenue from our branch
offices plus the sales activity of locations operating under a franchise
agreement with us. Systemwide sales in the United States is calculated as
follows:
Revenue from services $ 463.5 $ 428.7
Less: Franchise fees 5.2 4.9
Add: Franchise sales 229.6 230.2
-----------------------------
Systemwide sales $ 687.9 $ 654.0
=============================
(b) The components of interest and other expense (income) were:
Interest expense $ 10.0 $ 9.9
Interest income (2.4) (2.6)
Foreign exchange (gains) losses (1.2) 0.2
Miscellaneous, net 2.2 0.5
-----------------------------
$ 8.6 $ 8.0
=============================
Manpower Inc.
Consolidated Balance Sheets
(In millions)
MAR. 31 DEC. 31
2003 2002
-------- --------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 328.7 $ 284.0
Accounts receivable, net 2,137.2 2,214.2
Prepaid expenses and other assets 80.9 76.0
Future income tax benefits 76.3 79.1
-------- --------
Total current assets 2,623.1 2,653.3
OTHER ASSETS:
Intangible assets, net 542.7 545.7
Investments in licensees 62.2 60.5
Other assets 272.4 253.4
-------- --------
Total other assets 877.3 859.6
PROPERTY AND EQUIPMENT:
Land, buildings, leasehold improvements and equipment 543.7 533.4
Less: accumulated depreciation and amortization 360.2 344.6
-------- --------
Net property and equipment 183.5 188.8
-------- --------
Total assets $3,683.9 $3,701.7
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 478.4 $ 447.0
Employee compensation payable 96.7 96.2
Accrued liabilities 263.9 295.7
Accrued payroll taxes and insurance 332.7 391.6
Value added taxes payable 306.0 309.0
Short-term borrowings and current
maturities of long-term debt 19.8 22.8
-------- --------
Total current liabilities 1,497.5 1,562.3
OTHER LIABILITIES:
Long-term debt 810.1 799.0
Other long-term liabilities 347.1 340.5
-------- --------
Total other liabilities 1,157.2 1,139.5
SHAREHOLDERS' EQUITY:
Common stock 0.9 0.9
Capital in excess of par value 1,702.8 1,696.2
Accumulated deficit (274.8) (289.7)
Accumulated other comprehensive income (loss) (115.9) (123.7)
Treasury stock, at cost (283.8) (283.8)
-------- --------
Total shareholders' equity 1,029.2 999.9
-------- --------
Total liabilities and shareholders' equity $3,683.9 $3,701.7
======== ========
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
THREE MONTHS ENDED
MARCH 31
-------------------
2003 2002
-------------------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 14.9 $ 6.9
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 15.6 14.9
Amortization of discount on convertible debentures 1.9 1.8
Deferred income taxes 3.6 1.2
Provision for doubtful accounts 3.0 4.9
Changes in operating assets and liabilities:
Accounts receivable 124.6 40.0
Other assets (1.3) (12.1)
Other liabilities (103.1) (27.2)
------ ------
Cash provided by operating activities 59.2 30.4
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (12.1) (14.1)
Acquisitions of business, net of cash acquired (0.7) (21.5)
Proceeds from the sale of property and equipment 1.0 1.3
------ ------
Cash used by investing activities (11.8) (34.3)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of short-term facilities
and long-term debt (13.6) (7.0)
Proceeds from stock option and purchase plans 6.6 9.2
Repurchase of common stock - (30.7)
------ ------
Cash used by financing activities (7.0) (28.5)
Effect of exchange rate changes on cash 4.3 (2.6)
------ ------
Change in cash and cash equivalents 44.7 (35.0)
Cash and cash equivalents, beginning of period 284.0 245.8
------ ------
Cash and cash equivalents, end of period $328.7 $210.8
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