man-ex991

MILWAUKEE, February 2, 2021 -- ManpowerGroup (NYSE: MAN) today reported net earnings of $1.33 per diluted share for the three months ended December 31, 2020 compared to $2.33 per diluted share in the prior year period. Net earnings in the quarter were $76.2 million compared to $138.8 million a year earlier. Revenues for the fourth quarter were $5.1 billion, a 3% decline from the prior year period.

The current year quarter included restructuring costs which reduced earnings per share by $0.15. Excluding the restructuring costs, earnings per share was $1.48 per diluted share in the quarter. Financial results in the quarter were also impacted by the weaker U.S. dollar relative to foreign currencies compared to the prior year period. Earnings per share in the quarter were positively impacted 5 cents by changes in foreign currencies compared to the prior year, or 6 cents excluding the restructuring costs. On a constant currency basis, revenues decreased 6%. Excluding the impact of the restructuring costs, on a constant currency basis, net earnings per diluted share decreased 39%.

Days Sales Outstanding improved by 3.4 days year over year reflecting our continued focus on collections and working capital management.

Jonas Prising, ManpowerGroup Chairman & CEO, said, “Our fourth quarter results reflect a continuation of the revenue recovery that began in May 2020. Despite experiencing a series of ongoing lockdowns around the world during the fourth quarter, our results reflect a stronger market environment, including revenue growth and new opportunities in select markets. The combination of our tech and

PeopleFirst approach – the talent, skills and dedication of our teams – allows us to confidently manage uncertainty, volatility, collaborate remotely and be more agile than we ever believed possible.

We are pleased with the strategic progress we made in 2020 despite a very difficult operating environment. We enter the new year confident that our strategy to Diversify, Digitize and Innovate continues to position ManpowerGroup for greater success and profitable growth in the future.”

“We anticipate diluted earnings per share in the first quarter will be between $0.64 and $0.72, which includes an estimated favorable currency impact of 7 cents.”

Net earnings for the year ended December 31, 2020 were $23.8 million, or $0.41 per diluted share compared to net earnings of $465.7 million, or net earnings of $7.72 per diluted share in the prior year. The full year period included special items and restructuring costs which reduced earnings per share by $3.26. The prior full year period included special items and restructuring costs which increased earnings per share by 4 cents and discrete income tax benefits that increased earnings per share by 23 cents. Revenues for the year were $18.0 billion, a decrease of 14% from prior year on both an as-reported and constant-currency basis. Reported earnings per share for the year were positively impacted 1 cent by changes in foreign currencies compared to the prior year, or 3 cents excluding the special items and restructuring costs.

In conjunction with its fourth quarter and full year earnings release, ManpowerGroup will broadcast its conference call live over the Internet on February 2, 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 http://investor.manpowergroup.com/ .

ManpowerGroup® (NYSE: 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 2020 ManpowerGroup was named one of the World's Most Ethical Companies for the eleventh year - all confirming our position as the brand of choice for in-demand talent.

This news release contains statements, including statements regarding the anticipated financial and operational impacts of the COVID-19 pandemic and related economic conditions 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, 2019, as well as the risks and uncertainties arising from the COVID-19

global pandemic and related governmental actions that are discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which information is incorporated herein by reference.

	Three Months Ended December 31
					% Variance
					Amount			Constant
	2020		2019		Reported			Currency
	(Unaudited)
Revenues from services (a)	$	5,054.9	$	5,196.6		-2.7	%		-6.5	%
Cost of services		4,256.0		4,337.0		-1.9	%		-5.7	%
Gross profit		798.9		859.6		-7.1	%		-10.4	%
Selling and administrative expenses		660.6		668.0		-1.1	%		-4.6	%
Operating profit		138.3		191.6		-27.8	%		-30.4	%
Interest and other expenses, net		7.6		5.5		40.6	%
Earnings before income taxes		130.7		186.1		-29.8	%		-32.1	%
Provision for income taxes		54.5		47.3		15.0	%
Net earnings	$	76.2	$	138.8		-45.1	%		-46.9	%
Net earnings per share - basic	$	1.34	$	2.35		-43.0	%
Net earnings per share - diluted	$	1.33	$	2.33		-42.9	%		-45.1	%
Weighted average shares - basic		57.0		59.0		-3.4	%
Weighted average shares - diluted		57.4		59.5		-3.6	%

	Three Months Ended December 31
							% Variance
							Amount			Constant
	2020			2019			Reported			Currency
	(Unaudited)
Revenues from Services:
Americas:
United States (a)	$	621.6		$	648.3			-4.1	%		-4.1	%
Other Americas		394.1			437.4			-9.8	%		-2.5	%
		1,015.7			1,085.7			-6.4	%		-3.5	%
Southern Europe:
France		1,303.0			1,361.8			-4.3	%		-11.2	%
Italy		423.3			380.6			11.2	%		3.3	%
Other Southern Europe		601.0			591.1			1.7	%		-4.7	%
		2,327.3			2,333.5			-0.3	%		-7.2	%
Northern Europe		1,094.8			1,174.1			-6.7	%		-10.6	%
APME		617.1			603.3			2.2	%		-0.9	%
	$	5,054.9		$	5,196.6			-2.7	%		-6.5	%
Operating Unit Profit:
Americas:
United States	$	30.1		$	33.9			-11.3	%		-11.3	%
Other Americas		18.1			22.9			-20.9	%		-14.7	%
		48.2			56.8			-15.2	%		-12.7	%
Southern Europe:
France		62.0			83.6			-25.8	%		-31.2	%
Italy		23.6			29.1			-19.0	%		-24.8	%
Other Southern Europe		14.7			16.0			-8.4	%		-14.0	%
		100.3			128.7			-22.1	%		-27.6	%
Northern Europe		8.7			24.1			-63.6	%		-60.2	%
APME		18.5			22.3			-16.8	%		-18.8	%
		175.7			231.9
Corporate expenses		(30.4	)		(32.9	)
Intangible asset amortization expense		(7.0	)		(7.4	)
Operating profit		138.3			191.6			-27.8	%		-30.4	%
Interest and other expenses, net (b)		(7.6	)		(5.5	)
Earnings before income taxes	$	130.7		$	186.1

	Year Ended December 31
						% Variance
						Amount			Constant
	2020		2019			Reported			Currency
	(Unaudited)
Revenues from services (a)	$	18,001.0	$	20,863.5			-13.7	%		-13.9	%
Cost of services		15,176.3		17,488.4			-13.2	%		-13.4	%
Gross profit		2,824.7		3,375.1			-16.3	%		-16.5	%
Selling and administrative expenses, excluding goodwill impairment charges		2,570.3		2,666.2			-3.6	%		-3.8	%
Goodwill impairment charges (b)		66.8		64.0			4.2	%		4.6	%
Selling and administrative expenses		2,637.1		2,730.2			-3.4	%		-3.6	%
Operating profit		187.6		644.9			-70.9	%		-71.2	%
Interest and other expenses (income), net		39.9		(40.6	)	N/A
Earnings before income taxes		147.7		685.5			-78.5	%		-78.7	%
Provision for income taxes		123.9		219.8			-43.7	%
Net earnings	$	23.8	$	465.7			-94.9	%		-94.9	%
Net earnings per share - basic	$	0.41	$	7.78			-94.7	%
Net earnings per share - diluted	$	0.41	$	7.72			-94.7	%		-94.8	%
Weighted average shares - basic		58.0		59.9			-3.1	%
Weighted average shares - diluted		58.3		60.3			-3.4	%

	Year Ended December 31
							% Variance
							Amount			Constant
	2020			2019			Reported			Currency
	(Unaudited)
Revenues from Services:
Americas:
United States (a)	$	2,327.2		$	2,590.6			-10.2	%		-10.2	%
Other Americas		1,465.2			1,688.0			-13.2	%		-3.7	%
		3,792.4			4,278.6			-11.4	%		-7.6	%
Southern Europe:
France		4,338.1			5,479.6			-20.8	%		-22.8	%
Italy		1,370.7			1,508.3			-9.1	%		-11.3	%
Other Southern Europe		2,146.4			2,206.5			-2.7	%		-5.2	%
		7,855.2			9,194.4			-14.6	%		-16.7	%
Northern Europe		3,976.7			4,735.5			-16.0	%		-16.1	%
APME		2,376.7			2,655.0			-10.5	%		-10.5	%
	$	18,001.0		$	20,863.5			-13.7	%		-13.9	%
Operating Unit Profit (Loss):
Americas:
United States	$	60.9		$	128.0			-52.4	%		-52.4	%
Other Americas		55.1			75.4			-26.9	%		-20.0	%
		116.0			203.4			-43.0	%		-40.4	%
Southern Europe:
France		149.0			284.9			-47.7	%		-49.8	%
Italy		64.2			102.5			-37.4	%		-39.1	%
Other Southern Europe		23.8			67.9			-65.0	%		-66.8	%
		237.0			455.3			-48.0	%		-50.0	%
Northern Europe		(27.6	)		74.4		N/A			N/A
APME		70.1			127.5			-45.0	%		-45.4	%
		395.5			860.6
Corporate expenses		(113.9	)		(121.9	)
Goodwill impairment charges		(66.8	)		(64.0	)
Intangible asset amortization expense		(27.2	)		(29.8	)
Operating profit		187.6			644.9			-70.9	%		-71.2	%
Interest and other (expenses) income, net (b)		(39.9	)		40.6
Earnings before income taxes	$	147.7		$	685.5

	Dec. 31			Dec.31
	2020			2019
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,567.1		$	1,025.8
Accounts receivable, net		4,912.4			5,273.1
Prepaid expenses and other assets		186.9			185.6
Total current assets		6,666.4			6,484.5
Other assets:
Goodwill		1,225.8			1,260.1
Intangible assets, net		248.6			268.6
Operating lease right-of-use asset		418.7			448.5
Other assets		651.6			618.8
Total other assets		2,544.7			2,596.0
Property and equipment:
Land, buildings, leasehold improvements and equipment		614.7			605.5
Less: accumulated depreciation and amortization		479.6			462.2
Net property and equipment		135.1			143.3
Total assets	$	9,346.2		$	9,223.8
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,527.4		$	2,474.9
Employee compensation payable		231.8			206.4
Accrued liabilities		601.9			545.4
Accrued payroll taxes and insurance		752.0			649.7
Value added taxes payable		551.1			504.0
Short-term borrowings and current maturities of long-term debt		20.4			61.0
Total current liabilities		4,684.6			4,441.4
Other liabilities:
Long-term debt		1,103.5			1,012.4
Long-term operating lease liability		323.3			336.7
Other long-term liabilities		781.2			671.8
Total other liabilities		2,208.0			2,020.9
Shareholders' equity:
ManpowerGroup shareholders' equity
Common stock		1.2			1.2
Capital in excess of par value		3,402.5			3,370.6
Retained earnings		3,388.8			3,494.1
Accumulated other comprehensive loss		(397.3	)		(441.0	)
Treasury stock, at cost		(3,954.2	)		(3,681.9	)
Total ManpowerGroup shareholders' equity		2,441.0			2,743.0
Noncontrolling interests		12.6			18.5
Total shareholders' equity		2,453.6			2,761.5
Total liabilities and shareholders' equity	$	9,346.2		$	9,223.8

	Year Ended
	December 31
	2020			2019
	(Unaudited)
Cash Flows from Operating Activities:
Net earnings	$	23.8		$	465.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		76.3			77.2
Non-cash gain on disposition of previously held equity interest		—			(80.4	)
Non-cash gain on disposition of previously held controlling interest		—			(30.4	)
Non-cash goodwill and other impairment charges		71.3			64.0
Non-cash operating lease right-of-use assets impairment		27.3			—
Deferred income taxes		(10.4	)		(43.0	)
Provision for doubtful accounts		20.3			21.8
Share-based compensation		24.2			26.3
Changes in operating assets and liabilities, excluding the impact of acquisitions:
Accounts receivable		586.9			(80.2	)
Other assets		29.9			122.3
Other liabilities		86.8			271.1
Cash provided by operating activities		936.4			814.4
Cash Flows from Investing Activities:
Capital expenditures		(50.7	)		(52.9	)
Acquisitions of businesses, net of cash acquired		(0.7	)		77.8
Impact to cash resulting from deconsolidation of subsidiaries		—			(57.9	)
Proceeds from the sale of subsidiaries, investments, property and equipment		9.0			16.8
Cash used in investing activities		(42.4	)		(16.2	)
Cash Flows from Financing Activities:
Net change in short-term borrowings		(40.8	)		11.2
Proceeds from long-term debt		2.7			9.6
Repayments of long-term debt		(0.4	)		(1.3	)
Payments of contingent consideration for acquisitions		(1.9	)		(22.8	)
Proceeds from share-based awards and sale of subsidiaries		7.4			7.5
Payments to noncontrolling interests		(0.8	)		(2.1	)
Other share-based award transactions		(7.6	)		(7.2	)
Repurchases of common stock		(264.7	)		(203.0	)
Dividends paid		(129.1	)		(129.3	)
Cash used in financing activities		(435.2	)		(337.4	)
Effect of exchange rate changes on cash		82.5			(26.9	)
Change in cash and cash equivalents		541.3			433.9
Cash and cash equivalents, beginning of period		1,025.8			591.9
Cash and cash equivalents, end of period	$	1,567.1		$	1,025.8

FOR IMMEDIATE RELEASE		Contact:

		Jack McGinnis
		+1.414.906.7977
		jack.mcginnis@manpowergroup.com

	2020			2019
Interest expense	$	11.0		$	11.1
Interest income		(3.2	)		(2.8	)
Foreign exchange loss		0.7			0.2
Miscellaneous income		(0.9	)		(3.0	)
	$	7.6		$	5.5