Exhibit 99.1
(MANPOWER LOGO)
FOR IMMEDIATE RELEASE
CONTACT:
Mike Van Handel
Chief Financial Officer
(414) 906-6305
MANPOWER REPORTS 4TH QUARTER AND FULL-YEAR 2003 RESULTS
MILWAUKEE, WI, USA, January 29, 2004 - Manpower Inc. (NYSE: MAN) today reported
that net income for the three months ended December 31, 2003 increased 24.6
percent to $49.9 million, or 63 cents per diluted share, from $40.1 million, or
52 cents per diluted share, a year earlier. Revenues for the fourth quarter
totaled $3.3 billion, an increase of 15.9 percent from the year-earlier period.
Results for the fourth quarter were positively affected by relatively
stronger foreign currencies compared to the prior year period. On a constant
currency basis, earnings per diluted share for the quarter were 53 cents on a
2.8 percent revenue increase. Results were also favorably impacted by a net 8
cents as a result of a reduction in our estimated liability related to
government payroll tax subsidies, partially offset by office closure costs.
Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer,
said, "Throughout the fourth quarter of 2003 we continued to see positive signs.
In several markets throughout the world the demand for our services is gradually
improving, but more importantly, our infrastructure investments and execution of
our strategies are clearly accelerating our performance.
"Manpower France continues to perform very well. Germany, Canada,
Japan, and Mexico also contributed nicely to the success of the quarter and full
year. The U.S. market is more positive, though employers remain hesitant and
reluctant to hire. On a full year basis, 2003 was unpredictable and difficult,
and the Manpower team across the world responded superbly.
"We are anticipating the first quarter of 2004 fully diluted earnings
per share to fall in the range of 23 to 27 cents. This includes an estimated
positive currency impact of 4 cents and earnings accretion from the recently
completed acquisition of Right Management Consultants of 3 cents."
- MORE -
MANPOWER INC. o P.O. BOX 2053 o 5301 N. IRONWOOD RD., MILWAUKEE, WI 53201 o USA
o PHONE +1.414-961-1000 o www.manpower.com
MANPOWER REPORTS 4TH QUARTER AND FULL-YEAR 2002/PAGE 2
Net income for the year ended December 31, 2003 totaled $137.7 million
or $1.74 per diluted share, up 21.7 percent from $113.2 million, or $1.46 per
diluted share in 2002. Revenues for the year were $12.2 billion, an increase of
14.8 percent from the prior year. On a constant currency basis, earnings per
diluted share for the year were $1.45 on a revenue increase of 2.2 percent.
In conjunction with its fourth quarter earnings release, Manpower will
broadcast its conference call live over the Internet on January 29 at 8:00 a.m.
CST (9:00 a.m. EST). Interested parties are invited to listen by logging on to
http://investor.manpower.com.
Supplemental financial information referenced in the conference call
can be found at http://investor.manpower.com.
# # #
ABOUT MANPOWER INC.
Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry,
offering customers a continuum of services to meet their needs throughout the
employment and business cycle. The company specializes in permanent, temporary
and contract recruitment; employee assessment; training; career transition and
organizational consulting services. Manpower's worldwide network of 4,300
offices in 66 countries and territories enables the company to meet the needs of
its 400,000 customers per year, including small and medium size enterprises in
all industry sectors, as well as the world's largest multinational corporations.
The focus of Manpower's work is on raising productivity through improved
quality, efficiency and cost-reduction, enabling customers to concentrate on
their core business activities. In addition to the Manpower brand, the company
operates under the brand names of Right Management Consultants, Jefferson Wells,
Elan, Brook Street and Empower. More information on Manpower Inc. is available
at www.manpower.com.
FORWARD-LOOKING STATEMENTS
This news release contains statements, including earning 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 statement can
be found in the Company's reports filed with the SEC, including its Annual
Report on Form 10-K for the year ended December 31, 2002, which information is
incorporated herein by reference.
Manpower Inc.
Results of Operations
(In millions, except per share data)
THREE MONTHS ENDED DECEMBER 31
-------------------------------------------------
% VARIANCE
----------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
-------------------------------------------------
(Unaudited)
Revenues from services (a) $ 3,289.2 $ 2,838.1 15.9% 2.8%
Cost of services 2,689.5 2,322.4 15.8%
-------------------------
Gross profit 599.7 515.7 16.3% 3.3%
Selling and administrative expenses 510.6 428.6 19.1% 6.6%
-------------------------
Operating profit 89.1 87.1 2.4% -12.8%
Interest and other expenses 8.6 17.9 -52.2%
-------------------------
Earnings before income taxes 80.5 69.2 16.4%
Provision for income taxes 30.6 29.1 5.2%
-------------------------
Net earnings $ 49.9 $ 40.1 24.6% 6.1%
=========================
Net earnings per share - basic $ 0.64 $ 0.52 23.1%
=========================
Net earnings per share - diluted $ 0.63 $ 0.52 21.2% 1.9%
=========================
Weighted average shares - basic 78.2 76.9 1.7%
=========================
Weighted average shares - diluted 79.8 77.6 2.9%
=========================
(a) Revenues from services include fees received from our franchise offices of
$7.7 million and $7.6 million for the three months ended December 31, 2003
and 2002, respectively. These fees are primarily based on revenues
generated by the franchise offices, which were $339.6 million and $317.9
million for the three months ended December 31, 2003 and 2002,
respectively.
Manpower Inc.
Operating Unit Results
(In millions)
THREE MONTHS ENDED DECEMBER 31
----------------------------------------------------
% VARIANCE
-----------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
----------------------------------------------------
(Unaudited)
Revenues from services:
United States (a) $ 497.8 $ 495.0 0.6% 0.6%
France 1,233.1 1,034.5 19.2% 0.2%
EMEA 1,089.5 934.0 16.7% 2.5%
Other Operations 468.8 374.6 25.1% 13.7%
-------------------------
$ 3,289.2 $ 2,838.1 15.9% 2.8%
=========================
Operating Unit Profit:
United States $ 9.7 $ 13.4 -28.1% -28.1%
France 63.9 48.1 32.9% 11.3%
EMEA 17.0 26.8 -36.7% -44.9%
Other Operations 11.4 4.1 187.5% 173.0%
-------------------------
102.0 92.4
Corporate expenses 12.9 5.3
-------------------------
Operating profit 89.1 87.1 2.4% -12.8%
Interest and other expenses (b) 8.6 17.9
-------------------------
Earnings before income taxes $ 80.5 $ 69.2
=========================
(a) In the United States, revenues from services include fees received from
the related franchise offices of $6.2 million and $5.8 million for the
three months ended December 31, 2003 and 2002, respectively. These fees
are primarily based on revenues generated by the franchise offices, which
were $286.8 million and $254.2 million for the three months ended December
31, 2003 and 2002, respectively.
(b) The components of interest and other expense (income) were:
Interest expense $ 10.4 $ 10.5
Interest income (2.0) (2.4)
Foreign exchange gains (0.4) (1.0)
Miscellaneous, net 0.6 10.8
-------------------------
$ 8.6 $ 17.9
=========================
Manpower Inc.
Results of Operations
(In millions, except per share data)
YEAR ENDED DECEMBER 31
-------------------------------------------------
% VARIANCE
----------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
-------------------------------------------------
Revenues from services (a) $12,184.5 $10,610.9 14.8% 2.2%
Cost of services 10,047.7 8,700.5 15.5%
------------------------
Gross profit 2,136.8 1,910.4 11.9% -0.3%
Selling and administrative expenses 1,878.9 1,675.6 12.1% 0.6%
------------------------
Operating profit 257.9 234.8 9.9% -6.6%
Interest and other expenses 35.8 46.8 -23.6%
------------------------
Earnings before income taxes 222.1 188.0 18.2%
Provision for income taxes 84.4 74.8 12.8%
------------------------
Net earnings $ 137.7 $ 113.2 21.7% 1.4%
========================
Net earnings per share - basic $ 1.77 $ 1.48 19.6%
========================
Net earnings per share - diluted $ 1.74 $ 1.46 19.2% -0.7%
========================
Weighted average shares - basic 77.7 76.4 1.7%
========================
Weighted average shares - diluted 79.3 77.7 2.0%
========================
(a) Revenues from services include fees received from our franchise offices of
$26.5 million and $25.8 million for the year ended December 31, 2003 and
2002, respectively. These fees are primarily based on revenues generated
by the franchise offices (unaudited), which were $1,214.4 million and
$1,179.8 million for the year ended December 31, 2003 and 2002,
respectively.
Manpower Inc.
Operating Unit Results
(In millions)
YEAR ENDED DECEMBER 31
--------------------------------------------------------
% VARIANCE
--------------------------
AMOUNT CONSTANT
2003 2002 REPORTED CURRENCY
--------------------------------------------------------
Revenues from services:
United States (a) $ 1,945.8 $ 1,911.4 1.8% 1.8%
France 4,638.8 3,848.2 20.5% 0.9%
EMEA 3,920.2 3,434.9 14.1% -0.3%
Other Operations 1,679.7 1,416.4 18.6% 12.4%
------------------------
$12,184.5 $10,610.9 14.8% 2.2%
========================
Operating Unit Profit:
United States $ 33.7 $ 29.2 15.2% 15.2%
France 184.0 143.6 28.2% 7.4%
EMEA 51.7 83.0 -37.7% -45.4%
Other Operations 27.9 6.6 324.1% 288.8%
------------------------
297.3 262.4
Corporate expenses 39.4 27.5
Amortization of other intangible assets -- 0.1
------------------------
Operating profit 257.9 234.8 9.9% -6.6%
Interest and other expenses (b) 35.8 46.8
------------------------
Earnings before income taxes $ 222.1 $ 188.0
========================
(a) In the United States, revenues from services include fees received from
the related franchise offices of $21.9 million and $21.7 million for the
year ended December 31, 2003 and 2002, respectively. These fees are
primarily based on revenues generated by the franchise offices
(unaudited), which were $1,026.2 million and $1,015.8 million for the year
ended December 31, 2003 and 2002, respectively.
(b) The components of interest and other expense (income) were:
<Table>
Interest expense $ 41.4 $ 42.4
Interest income (8.0) (9.0)
Foreign exchange gains (1.3) (1.8)
Miscellaneous, net 3.7 15.2
------------------------
$ 35.8 $ 46.8
========================
Manpower Inc.
Consolidated Balance Sheets
(In millions)
DEC. 31 DEC. 31
2003 2002
---------- ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 426.2 $ 284.0
Accounts receivable, net 2,609.4 2,214.2
Prepaid expenses and other assets 100.1 76.0
Future income tax benefits 101.4 79.1
---------- ----------
Total current assets 3,237.1 2,653.3
OTHER ASSETS:
Goodwill and other intangible assets, net 573.8 545.7
Investments in licensees 66.2 60.5
Other assets 320.7 253.4
---------- ----------
Total other assets 960.7 859.6
PROPERTY AND EQUIPMENT:
Land, buildings, leasehold improvements and equipment 606.3 533.4
Less: accumulated depreciation and amortization 419.2 344.6
---------- ----------
Net property and equipment 187.1 188.8
---------- ----------
Total assets $ 4,384.9 $ 3,701.7
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 555.4 $ 447.0
Employee compensation payable 105.6 96.2
Accrued liabilities 360.0 295.7
Accrued payroll taxes and insurance 476.6 391.6
Value added taxes payable 368.2 309.0
Short-term borrowings and current
maturities of long-term debt 12.1 22.8
---------- ----------
Total current liabilities 1,877.9 1,562.3
OTHER LIABILITIES:
Long-term debt 829.6 799.0
Other long-term liabilities 367.1 340.5
---------- ----------
Total other liabilities 1,196.7 1,139.5
SHAREHOLDERS' EQUITY:
Common stock 0.9 0.9
Capital in excess of par value 1,732.5 1,696.2
Accumulated deficit (167.6) (289.7)
Accumulated other comprehensive income (loss) 28.3 (123.7)
Treasury stock, at cost (283.8) (283.8)
---------- ----------
Total shareholders' equity 1,310.3 999.9
---------- ----------
Total liabilities and shareholders' equity $ 4,384.9 $ 3,701.7
========== ==========
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
YEAR ENDED
DECEMBER 31
----------------------
2003 2002
----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 137.7 $ 113.2
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 64.4 65.4
Amortization of discount on convertible debentures 7.6 7.3
Deferred income taxes (1.4) (0.2)
Provision for doubtful accounts 16.7 18.2
Changes in operating assets and liabilities:
Accounts receivable (71.1) (54.4)
Other assets (37.4) 41.6
Other liabilities 106.9 36.8
-------- --------
Cash provided by operating activities 223.4 227.9
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (55.5) (58.5)
Acquisitions of business, net of cash acquired (6.7) (33.5)
Proceeds from the sale of property and equipment 6.0 5.3
-------- --------
Cash used by investing activities (56.2) (86.7)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of short-term
facilities and long-term debt (84.5) (115.0)
Proceeds from stock option and purchase plans 35.6 29.4
Repurchase of common stock -- (30.7)
Dividends paid (15.6) (15.3)
-------- --------
Cash used by financing activities (64.5) (131.6)
-------- --------
Effect of exchange rate changes on cash 39.5 28.6
-------- --------
Change in cash and cash equivalents 142.2 38.2
Cash and cash equivalents, beginning of period 284.0 245.8
-------- --------
Cash and cash equivalents, end of period $ 426.2 $ 284.0
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