ManpowerGroup(MAN) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues from services for Q2 2024 were $4,520.7 million, a decrease of 6.9$4,856.1 million in Q2 2023[9] - Gross profit for Q2 2024 was $785.9 million, down 8.9$862.3 million in Q2 2023[9] - Net earnings for Q2 2024 were $60.1 million, a decline of 7.8$65.2 million in Q2 2023[10] - Basic net earnings per share for Q2 2024 were $1.25, down from$1.30 in Q2 2023[9] - Operating profit for the six months ended June 30, 2024, was $167.0 million, down from$225.5 million in the same period of 2023, reflecting a decline of 26%[74] - Net earnings per share (diluted) for the three months ended June 30, 2024, was $1.24, compared to$1.29 for the same period in 2023[42] - Net earnings for June 2024 were $99.8 million, a decrease of 30.2$143.0 million in June 2023[12] Assets and Liabilities - Total current assets decreased to $5,233.3 million as of June 30, 2024, from$5,572.1 million at the end of 2023, representing a decline of 6.1%[5] - Total assets decreased to $8,453.6 million as of June 30, 2024, down from$8,830.2 million at the end of 2023, a reduction of 4.3%[7] - Total current liabilities decreased to $4,578.0 million as of June 30, 2024, from$4,799.7 million at the end of 2023, a decrease of 4.6%[7] - Long-term debt as of June 30, 2024, was $961.7 million, down from$990.5 million at the end of 2023, a reduction of 2.8%[7] - Shareholders' equity decreased to $2,145.9 million as of June 30, 2024, from$2,234.1 million at the end of 2023, a decline of 3.9%[7] Cash Flow and Expenditures - Cash used in operating activities was $(21.9) million, an improvement from$(31.2) million in the same period last year[12] - Capital expenditures for June 2024 were $(23.7) million, down from$(34.6) million in June 2023[12] - Cash and cash equivalents at the end of June 2024 were $468.9 million, compared to$407.6 million at the end of June 2023[12] - Interest paid in June 2024 was $37.2 million, down from$49.1 million in June 2023[12] - Income taxes paid in June 2024 were $89.9 million, slightly lower than$91.8 million in June 2023[12] Revenue Segmentation - The total revenue for the six months ended June 30, 2024, was $8,924.0 million, compared to$8,356.7 million for the same period in 2023, indicating a year-over-year increase of about 6.8%[31] - The United States segment generated $1,377.4 million in revenue for the six months ended June 30, 2024, up from$1,289.5 million in the prior year, reflecting a growth of approximately 6.8%[31] - The Southern Europe segment, particularly France, reported revenue of $2,304.2 million for the six months ended June 30, 2024, compared to$2,234.5 million in the same period of 2023, marking an increase of about 3.1%[31] - The Americas region accounted for a total revenue of $2,100.8 million for the six months ended June 30, 2024, compared to$2,017.2 million in the prior year, showing an increase of approximately 4.1%[31] Accounting and Compliance - The company is currently assessing the impact of new accounting standards on financial statement disclosures, effective for 2024 and 2025[26][27] - The company’s lease liabilities are recognized at the present value of remaining lease payments, with ROU assets adjusted for prepayments and incentives[21] - The company’s revenue recognition for certain contracts is based on the right to invoice, reflecting the value provided to clients[28] Shareholder Actions - The company declared a semi-annual dividend of $1.54 per share on May 3, 2024, an increase from$1.47 per share declared on May 5, 2023[49] - During the six months ended June 30, 2024, the company repurchased 1.0 million shares at a cost of $77.0 million, with 3.6 million shares remaining authorized for repurchase under the 2023 authorization[50] Foreign Exchange and Derivatives - The company reported a foreign currency translation loss of$10.2 million for Q2 2024, compared to a gain of $11.0 million in Q2 2023[10] - The accumulated other comprehensive loss increased to$(500.4) million as of June 30, 2024, from $(466.0) million at the end of 2023, primarily due to foreign currency translation losses[48] - The company uses cross-currency swaps and forward contracts to hedge against foreign currency exchange rate risks, with specific instruments designated as hedges of net investments in foreign subsidiaries[53] Miscellaneous - The company recognized a full impairment of the remaining goodwill balance for the Netherlands reporting unit as of December 31, 2023, due to fair value falling below carrying value[25] - The company expects total consolidated amortization expense related to intangible assets for the remainder of 2024 to be$16.2 million, with future annual expenses projected at $30.3 million for 2025 and$26.2 million for 2027 through 2029[44]