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Manpower Inc. Reports Operating Results (10-Q)

August 05, 2010 | About:
10qk

10qk

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Manpower Inc. (MAN) filed Quarterly Report for the period ended 2010-06-30.

Manpower Inc. has a market cap of $3.99 billion; its shares were traded at around $48.69 with a P/E ratio of 41.6 and P/S ratio of 0.2. The dividend yield of Manpower Inc. stocks is 1.5%. Manpower Inc. had an annual average earning growth of 3% over the past 10 years.MAN is in the portfolios of First Pacific Advisors of First Pacific Advisors, LLC, First Pacific Advisors of First Pacific Advisors, LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Jeff Auxier of Auxier Focus Fund, Chuck Royce of Royce& Associates, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

On April 5, 2010, we completed our previously announced acquisition of COMSYS IT Partners, Inc. (“COMSYS”) from its existing shareholders. The value of the consideration for each outstanding share of COMSYS common stock was approximately $17.65, for a total enterprise value of $427.0 million, including debt of $47.1 million, which we repaid upon closing. The consideration was approximately 50% Manpower common stock (3.2 million shares at a fair value of $188.5 million) upon closing and approximately 50% cash (consideration of $191.4 million). COMSYS s operating results have been included within our consolidated results from April 5, 2010 and forward.

Interest and Other Expenses were $11.9 million for the second quarter of 2010 compared to $10.8 million for the same period in 2009. Net Interest Expense increased $0.4 million in the second quarter to $11.1 million as we incurred $2.2 million to write-off COMSYS s deferred financing costs and had a decline in interest income due to lower cash balances on-hand as a result of the COMSYS acquisition, offset by lower borrowings during the second quarter of 2010. Translation losses in the second quarter of 2010 were $0.9 million compared to $1.0 million in the second quarter of 2009.

Net Earnings Per Share – Diluted increased to $0.40 in the second quarter of 2010 compared to $0.21 in the second quarter of 2009. Exchange rates had a negative impact of $0.02 on Net Earnings Per Share – Diluted. Weighted Average Shares – Diluted were 82.5 million for the second quarter of 2010 as compared to 78.8 million in the second quarter of 2009, an increase of 4.7%, due primarily to the issuance of 3.2 million shares as part of the COMSYS acquisition on April 5, 2010.

Interest and Other Expenses were $24.8 million for the first half of 2010 compared to $22.7 million for the same period in 2009. Net Interest Expense increased $1.2 million in the first half of 2010 to $20.6 million as we incurred $2.2 million to write-off COMSYS s deferred financing costs and had a decline in interest income due to lower cash balances on-hand as a result of the COMSYS acquisition, offset by lower borrowings in the first half of 2010. Translation losses in the first half of 2010 were $2.8 million compared to $1.5 million in the 2009 period. This increase was primarily related to a translation loss of $1.2 million for Venezuela, resulting from our Venezuelan reporting unit s currency (Bolivar Fuerte) being devalued in January 2010 as well as changing the functional currency to the U.S. Dollar because of its current economy being deemed hyperinflationary, effective January 1, 2010.

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