Manpowergroup · NYSE:MAN
Manpowergroup — Manpower — Q1 2010 Earnings Presentation
22 slides from Manpowergroup's earnings presentation, Apr 21, 2010
Slide 1: 2010 1st Quarter Results
Helping Clients and Candidates Win for Over Six Decades 2010 April MANPOWER INC. 2010 1 st Quarter Results Exhibit 99.2
Slide 2: Forward-Looking Statement
2 This presentation includes forward-looking statements, including earnings projections which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual resul
Slide 3: Q1 Consolidated Financial Highlights
3 N/A N/A 13% 5% CC bps Operating Profit $33M OP Margin 0.8% Revenue $4.1B Gross Margin 17.1% EPS $.04 bps N/A N/A Q1 Highlights Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the impact of currency on our financial results. Co
Slide 4: Consolidated Gross Margin Change
4 Consolidated Gross Margin Change
Slide 5: Americas Segment Q1 Financial Highlights
5 20% CC Q1 Financial Highlights 24% OUP Margin 0.2% bps Revenue $737M OUP $1M Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segment revenues less direct costs and branch and national headquarters operating costs. (1) Included in these amount
Slide 6: Americas - Q1 Revenue Growth YoY
6 Revenue Growth - CC Revenue Growth % of Segment Revenue 60% 14% 9% 17% Americas - Q1 Revenue Growth YoY
Slide 7: France Segment Q1 Financial Highlights
7 7 France Segment (27% of Revenue) Q1 Financial Highlights OUP Margin 0.0% Revenue $1.1B OUP $0M 16% 9% CC bps 84% 70% CC (1) (1) 2009 includes non-recurring items, including reorganization charges, totaling a net benefit of $3.2M. (1) (1)
Slide 8: EMEA Segment Q1 Financial Highlights
8 (1) Included in these amounts is Italy, which had revenue of $234M (+6% in USD, 0% in CC) and OUP of $7M (+386% in USD, +363% in CC). (2) 2009 includes non-recurring items, including reorganization charges, totaling a net benefit of $1.7M. Q1 Financial Highlights OUP Margin 1.5% Revenue $1.6B OUP
Slide 9: EMEA - Q1 Revenue Growth YoY
9 Revenue Growth - CC Revenue Growth % of Segment Revenue 15% 14% 13% 11% 10% 5% 23% 9% EMEA - Q1 Revenue Growth YoY
Slide 10: Asia Pacific Segment Financial Highlights
10 Q1 Financial Highlights OUP Margin 2.5% Revenue $497M OUP $13M 17% 5% CC bps 4% 9% CC (1) (1) (1) (1) 2009 includes non-recurring items, including reorganization charges, totaling a net benefit of $3.9M. Asia Pacific Segment (12% of Revenue)
Slide 11: Asia Pacific - Q1 Revenue Growth YoY
11 Revenue Growth - CC Revenue Growth % of Segment Revenue 52% 25% 23% Asia Pacific - Q1 Revenue Growth YoY
Slide 12: Right Management Segment Financial Highlights
12 57% 58% CC Q1 Financial Highlights OUP Margin 12.1% Revenue $103M OUP $13M 24% 28% CC bps Right Management Segment (3% of Revenue)
Slide 13: Jefferson Wells Segment Financial Highlights
13 Jefferson Wells Segment (1% of Revenue) Q1 Financial Highlights OUP Margin - 11.7% Revenue $41M OUP $(5M) bps 23% N/A (1) (1) 2009 includes reorganization charges totaling $0.9M.
Slide 14: Financial Highlights
14 Financial Highlights
Slide 15: Results of Operations - Business Tax Reclassification
15 Results of Operations - Business Tax Reclassification (in millions of USD)
Slide 16: Reclass of French Business Tax to Provision for Income Taxes
16 Reclass of French Business Tax to Provision for Income Taxes Segment Operating Unit Results (in millions of USD)
Slide 17: Cash Flow Summary - Q1
17 Other Change in Cash (71) 2010 2009 Cash from Operations (43) Capital Expenditures (8) (9) Free Cash Flow (51) Share Repurchases - - Change in Debt - (56) ($ in millions) Effect of Exchange Rate Changes (26) (54) Acquisitions of Businesses, net of cash acquired (11) Cash Flow Summary - Q1
Slide 18: Total Debt
18 Total Debt ($ in millions) Total Debt to
Slide 19: Credit Facilities as of March 31, 2010
19 (b) (b) (a) (a) This $400M agreement requires, as of March 31, that we comply with a Debt-to-EBITDA ratio of less than 5.75 to 1 and a fixed charge coverage ratio of greater than 1.25 to 1. As defined in the agreement, we had a Debt-to-EBITDA ratio of 3.00 and a fixed charge coverage ratio of 1.6
Slide 20: Comsys Acquisition Summary
20 Closing date: April 5, 2010 Consideration: Cash $192M Stock 188M (3.2M shares @ $58.94 per share) Debt Retired 47M $427M (1) (1) Represents the closing stock price on April 5, which is higher than the average stock price of $57.98 used to determine the conversion ratio for the tender offer. Comsy
Slide 21: Second Quarter Outlook
21 Revenue Americas Up 54-56% France Up 13-15% (Up 14-16% CC) Up 16-18% Asia Pacific (Up 9-11% CC) Jefferson Wells Right Management Down 27-29% (Down 29-31% CC) Up 17-19% (Up 16-18% CC) Total Gross Profit Margin 17.5-17.7% Operating Profit Margin 1.1-1.3% Tax Rate 63% EPS $0.14-$0.22 ($0.24-$0.32 be
Slide 22: Questions?
Questions? Answers April 21, 2010 Manpower Inc. 2010 1 st Quarter Results