ManpowerGroup 1999 Annual Report Download

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People. Solutions. Value.
Manpower Inc. 1999 Annual Report

Table of contents

  • Page 1
    People. Solutions. Value. Manpower Inc. 1999 Annual Report

  • Page 2
    ...9 Year '9 5 '9 6 '9 7 '9 8 '9 9 (a) Represents total sales of Company-owned branches and franchises. (b) For 1999, Operating Margin does not include the $28.0 of nonrecurring items, related to employee severances, retirement costs and other associated realignment costs. For 1998, Operating Margin...

  • Page 3
    ...employees and our shareholders. Manpower is a world leader in staffing and workforce management solutions, serving more than 400,000 customers around the globe and distinguished by a series of significant strengths. We are the leading global staffing brand, a name that stands for quality, service...

  • Page 4
    ... competition and advancing technology have created both a critical shortage of skilled workers and the need for businesses to operate efficiently, productively and as flexibly as possible. These global developments are driving a growing demand for the staffing services that Manpower provides. 2

  • Page 5
    ... add to the Manpower brand. We have already put in place several e-commerce applications - from the Global Learning Center, which delivers e-training and development to our employees, to UltraSourceâ„¢ , a leading-edge web-based order management system for our customers. These two applications...

  • Page 6
    ... desk to the corporate headquarters, to improve our processes and streamline service delivery. Efficiency, however, does not mean simply cutting costs or constraining investment. In the year 2000, we expect to increase our capital expenditures to invest in the right opportunities for Manpower's long...

  • Page 7
    ...working together to build revenue, to improve efficiency and productivity, and to take quality to ever-higher levels. The fact that we are so well positioned is due in no small measure to the contributions of all the dedicated Manpower people worldwide who made 1999 a successful year for our company...

  • Page 8
    People are what we're about.

  • Page 9
    ... to contact, interview, screen and assign new employees with unparalleled efficiency. We continued to fortify our Global Learning Center (GLC), our Internet-based "virtual campus" which offers about 1,000 educational courses online, to help employees stay on the cutting edge of their careers through...

  • Page 10
    ... staff, our employees will make a successful transition to new employment. Our relationship with Manpower has made this process much easier." - Ann-Charlotte Dahlström / Vice President, Human Resources, Network Operators & Service Providers Career re-engineering. Ericsson, like many companies...

  • Page 11

  • Page 12

  • Page 13
    ... Unisys, one of the world's leading computer information and technology firms. As demand for the company's services in France mounted, Unisys needed to recruit rising numbers of entry-level high-tech employees - more people, in fact, than it could access on its own. To address this challenge, Unisys...

  • Page 14
    Solutions set us apart.

  • Page 15
    ... to deliver customer service excellence. Today, more than 50,000 Manpower employees staff call centers and customer care centers around the globe. We also took strategic outsourcing to new levels, from on-site human resource management to total outsourcing of customer functions and operations. Some...

  • Page 16
    ... annual savings and a superior customer service level for Elizabeth Arden. Just as important, by keeping the assembly operation in Roanoke, the company can closely monitor process quality. And it prevented the loss of local jobs that would have occurred if this work had been sent out of state...

  • Page 17

  • Page 18
    Value is our standard.

  • Page 19
    ... in our own operations, with the ability to share ideas and best practices, support global and regional customers, improve productivity, increase efficiency and drive continuing growth. In 1999, we upgraded our information technology capabilities by implementing powerful new systems to meet changing...

  • Page 20

  • Page 21
    ... global resources, local staffing connections, and skill development tools are critical as well. Not only do we give NMEC the best people and the best support systems; we also give them the knowledge that we can help their employees continue their careers after the year 2000. For Manpower, success...

  • Page 22
    ... solutions to a wide variety of Systemwide Offices (December 31, 1999) United Kingdom 283 Other Europe 722 Other Countries 380 customers. Through a global network of almost offices 3,400 in 52 systemwide countries, the Company provides temporary staffing services, contract services and training...

  • Page 23
    ... and Other Countries. (See Note 13 to the Consolidated Financial Statements for further information.) United States - The Company's United States operation again achieved record systemwide sales and revenue levels during 1999, with sales of $3.8 billion and revenues of $2.3 billion, increases of...

  • Page 24
    ... in new office openings in Europe's rapidly expanding markets, including Germany, Italy, Spain and Sweden. During 1999, the Company opened more than 100 offices in the Other European markets and has opened more than 450 offices since 1996. Operating profits also increased 29% during 1999 to...

  • Page 25
    ... in the U.S. (See "Capital resources" for a discussion of this program). Cash from operating activities was also significantly impacted by changes in working capital. +29% 2,000 75 Excluding the sale of accounts receivable in 1999 and 1998, cash used to support net working capital needs was $275...

  • Page 26
    ... the Company's unsecured revolving credit agreement and commercial paper program. In addition to the above, the Company and some of its foreign subsidiaries maintain separate lines of credit with local financial institutions to meet working capital needs. As of December 31, 1999, such lines totaled...

  • Page 27
    ...increase. The amount of financing necessary to support revenue growth depends on receivable turnover, which differs in each market in which the Company operates. The Company believes that its internally generated funds and its existing credit facilities are sufficient to cover its nearterm projected...

  • Page 28
    ...to provide a diversified service mix, including office, industrial, professional and call center resources and expertise, and a variety of workforce management solutions, including recruiting, training and managing temporary and permanent staff. While the Company believes that the wide spread of its...

  • Page 29
    ... of information systems - changes in customer attitudes toward the use of staffing services - government, tax or regulatory policies adverse to the employment services industry - general economic conditions in international markets - interest rate and exchange rate fluctuations The Company disclaims...

  • Page 30
    ..., on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits...

  • Page 31
    ...97 Revenues from services Cost of services Gross profit Selling and administrative expenses Write-down of capitalized software Operating profit Interest and other expense Earnings before income taxes Provision for income taxes Net earnings Net earnings per share Net earnings per share - diluted The...

  • Page 32
    ...allowance for doubtful accounts of $47.1 and $39.5, respectively Prepaid expenses and other assets Future income tax benefits Total current assets Other Assets: Investments in licensees Other assets Total other assets Property and Equipment: Land, buildings, leasehold improvements and equipment Less...

  • Page 33
    ...Liabilities and Shareholders' Equity Current Liabilities: Accounts payable Employee compensation payable Accrued liabilities Accrued payroll taxes and insurance Value added taxes payable Short-term borrowings and current maturities of long-term debt Total current liabilities Other Liabilities: Long...

  • Page 34
    ... sale of property and equipment Cash used by investing activities Cash Flows from Financing Activities: Net change in payable to banks Proceeds from long-term debt Repayment of long-term debt Proceeds from stock option and purchase plans Repurchase of common stock Dividends paid Cash provided (used...

  • Page 35
    ...comprehensive income Issuances under option and purchase plans Dividends ($.20 per share) Repurchases of common stock Balance, December 31, 1999 $ .8 $1,579....0) $ (88.8) $ (229.8) 18.7 (15.3) (100.8) $ 650.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these...

  • Page 36
    ..., are located in the United States, France and the United Kingdom. The Company provides a range of staffing and workplace management solutions, including temporary help, contract services and training and testing of temporary and permanent workers. The Company provides employment services to a wide...

  • Page 37
    ...Consolidated Financial Statements for further information.) Intangible assets Intangible assets consist primarily of Property and equipment are stated at cost and depreciated using the straight-line method over the following estimated useful lives: buildings - up to 40 years; leasehold improvements...

  • Page 38
    ... (1.1) (3.6) (2.4) $ 85.3 Other, net Total provision Shares (000) Exercise prices Weighted average remaining life 1,146 $27-$49 7.9 years (a) The Benefit on dissolution of $15.7 represents the one-time tax benefit realized during 1999 related to the dissolution of a non-operating subsidiary. 36

  • Page 39
    ... or $.70 per share on a diluted basis) non-cash charge to write off the carrying value of software costs and certain hardware and network infrastructure costs related to the development of a complex and proprietary information system for its North American branch office administration, invoicing and...

  • Page 40
    ... application to be purchased or developed for the new architecture. In addition to the developed software, certain hardware, network infrastructure and software licenses were also abandoned as a result of the change in system architecture. The non-cash charge included the costs of abandoning all of...

  • Page 41
    ...(7) Stock Compensation Plans The Company accounts for all of its fixed stock option plans and the 1990 Employee Stock Purchase Plan in accordance with APB Opinion No. 25 and related Interpretations. Accordingly, no compensation cost related to these plans was charged against earnings in 1999, 1998...

  • Page 42
    ... Plan. Under the plan, designated Manpower employees meeting certain service requirements may purchase shares of the Company's common stock through payroll deductions. These shares may be purchased at the lesser of 85% of their fair market value at the beginning or end of each year. During 1999...

  • Page 43
    ... is being amortized over the estimated remaining service lives of the employees. Plan assets are primarily comprised of common stocks and U.S. government and agency securities. In April 1999, the Company amended a U.S. plan to allow for special termination benefits related to senior executives. This...

  • Page 44
    ... benefits to newly retired employees who, as of January 1, 2000, are under the age of 45 or have less than five years of service. The net gain associated with this plan curtailment has not yet been determined but it is not expected to have a material impact on the Consolidated Financial Statements...

  • Page 45
    ...1997, respectively. (b) Represents nonrecurring items ($16.4 after tax) in the second quarter of 1999 related to employee severances, retirement costs and other associated realignment costs. (c) The write-down of capitalized software relates to the abandonment of an information system that was being...

  • Page 46
    ...-lived assets reflect the write-down of capitalized software related to the abandonment of an information system that was being developed in the U.S. (See Note 5 to the Consolidated Financial Statements for further information.) (b) Corporate assets include assets that are not used in the operations...

  • Page 47
    ...$2,427.5 417.1 (15.1) $ $ $ (.19) (.19) .10 $8,814.3 1,503.0 75.7 $ $ $ .94 .93 .19 $ 447⁄8 27 ⁄16 11 $ 301⁄8 20 $ 277⁄16 193⁄8 The Company's common stock is listed for trading on the New York Stock Exchange, which is the principal exchange for trading in the Company's shares. 45

  • Page 48
    ...Operations Data: Revenues from services Gross profit Write-down of capitalized software Operating profit Net earnings Per Share Data: Net earnings Net earnings - diluted Dividends Balance Sheet Data: Total assets Long-term debt $ 1999...to Consolidated Financial Statements should be read in ...

  • Page 49
    ... President Strategic Planning Gilbert Palay Retired Senior Executive Vice President, Manpower Inc. Annual Meeting of Shareholders April 17, 2000 10:00 a.m. Marcus Center for the Performing Arts 929 North Water Street Milwaukee, WI 53202 USA Dennis Stevenson Chairman of AerFi Group, Halifax plc...

  • Page 50
    ... Kong Honduras Hungary India Ireland Israel Italy Japan Korea Luxembourg Malaysia Mexico Monaco Morocco Netherlands New Zealand Norway Panama Paraguay Peru Portugal Puerto Rico Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand United Kingdom United States Uruguay Venezuela 48

  • Page 51
    Design: Edelman Worldwide Photography: Kevin Anderson Printing: Active Graphics

  • Page 52
    International Headquarters P.O. Box 2053, 5301 North Ironwood Road Milwaukee, Wisconsin 53201 USA Telephone 4 14 - 9 61 -10 0 0 www.manpower.com AR-1 0 0 (3 / 0 0 ) © 2 0 0 0 Manpower Inc.