Manpower (MAN) has reported a 37.80 percent jump in profit for the quarter ended Sep. 30, 2014. The company has earned $130.50 million, or $1.61 a share in the quarter, compared with $94.70 million, or $1.18 a share for the same period last year.
Revenue during the quarter grew 4.38 percent to $5,416 million from $5,188.80 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 16.72 percent. Total expenses were 96.08 percent of quarterly revenues, down from 96.87 percent for the same period last year. This has led to an improvement of 79 basis points in operating margin to 3.92 percent.
Operating income for the quarter was $212.30 million, compared with $162.40 million in the previous year period.
Jonas Prising, ManpowerGroup CEO, said, "Our third quarter results were strong, with solid revenue and profit growth in the majority of our operations and brands. While the economic recovery has recently become more choppy in some markets, we are still seeing growth opportunities and I am confident we are well positioned to deliver unique value to our clients in these uncertain times."
Cash Flow
Manpower has generated cash of $104.90 million from operating activities during the nine month period, down 6.09 percent or $6.80 million, when compared with the last year period.
The company has spent $56.60 million cash to meet investing activities during the nine month period as against cash outgo of $49.20 million in the last year period. It has incurred net capital expenditure of $34.10 million on net basis during the nine month period, down 5.80 percent or $2.10 million from year ago period.
Free cash flow was 67.49 percent of operating cash flow for the nine month period, compared with 67.59 percent in the last year period.
The company has spent $84.20 million cash to carry out financing activities during the nine month period as against cash outgo of $223.90 million in the last year period. It has borrowed net of $8.60 million through debt. It has spent net of $48.30 million on repurchase of common stocks.
Cash and cash equivalents stood at $660.70 million as on Sep. 30, 2014, up 35.20 percent or $172 million from $488.70 million on Sep. 30, 2013.
Working Capital
Manpower has recorded an increase in the working capital over the last year. It stood at $1,738.50 million as at Sep. 30, 2014, up 12.13 percent or $188 million from $1,550.50 million on Sep. 30, 2013. Current ratio was at 1.50 as on Sep. 30, 2014, up from 1.45 on Sep. 30, 2013.
Days sales outstanding were almost stable at 75 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 33 days for the quarter from 32 for the same period last year.
Debt Level
Manpower has recorded a decline in total debt over the last one year. It stood at $483.90 million as on Sep. 30, 2014, down 6.31 percent or $32.60 million from $516.50 million on Sep. 30, 2013. Total debt was 6.56 percent of total assets as on Sep. 30, 2014, compared with 7.27 percent on Sep. 30, 2013. Debt to equity ratio was at 0.16 as on Sep. 30, 2014, down from 0.18 as on Sep. 30, 2013.
