ManpowerGroup(MAN) - 2024 Q4 - Annual Results

Financial Performance - Net earnings for Q4 2024 were $22.5 million, or $0.47 per diluted share, compared to net losses of $84.5 million, or $1.73 per diluted share, in the prior year period [2]. - Full year 2024 revenues totaled $17.9 billion, a decrease of 6% compared to the prior year, or a decrease of 3% in constant currency [7]. - Net earnings increased by 63.5% to $145.1 million in 2024, compared to $88.8 million in 2023 [22]. - Net earnings per share (diluted) rose to $3.01 in 2024, a 70.6% increase from $1.76 in 2023 [22]. - Operating profit for 2024 was $306.0 million, reflecting a 19.6% increase from $255.8 million in 2023 [22]. Revenue and Profit Margins - Revenues for Q4 2024 were $4.4 billion, representing a 5% decrease from the prior year period, and a 3% decrease on a constant currency basis [5]. - Revenues from services for 2024 were $17,853.9 million, a decrease of 5.6% compared to $18,914.5 million in 2023 [22]. - The gross profit margin for Q4 2024 was 17.2%, with staffing margins remaining solid despite a slight decrease [5]. - Gross profit for 2024 was $3,086.8 million, down 8.1% from $3,358.0 million in 2023 [22]. Cash Flow and Investments - Cash provided by operating activities was $247 million, with free cash flow of $236 million for the quarter [4]. - Cash provided by operating activities was $309.2 million, a decrease from $348.2 million in the previous year, reflecting a decline of 11.5% [31]. - Cash used in investing activities totaled $68.2 million, slightly down from $74.1 million in 2023, indicating a reduction of 3.9% [31]. - Cash used in financing activities decreased to $282.4 million from $349.5 million, a reduction of 19.2% [31]. - The company reported a decrease in cash and cash equivalents to $509.4 million at the end of the period, down from $581.3 million at the beginning, a decline of 12.4% [31]. - Capital expenditures for the year were $51.1 million, compared to $78.2 million in 2023, showing a decrease of 34.6% [31]. Stock and Debt Management - The company repurchased $34 million of common stock during the quarter [5]. - The company repurchased $140.0 million in common stock, down from $179.8 million in the previous year, a decrease of 22.1% [31]. - Long-term debt decreased to $929.4 million in 2024 from $990.5 million in 2023 [29]. - Current liabilities were $4,437.1 million in 2024, down from $4,799.7 million in 2023 [29]. Regional Performance - Regional performance showed a challenging environment in Europe and North America, while Asia Pacific and Latin America experienced good demand [5]. Future Outlook - The company anticipates diluted earnings per share for Q1 2025 to be between $0.47 and $0.57, including an estimated unfavorable currency impact of 6 cents [7]. - Significant progress was made in global transformation initiatives during 2024, with expectations to continue this progress in 2025 [6]. Impairments and Provisions - The goodwill impairment charge for 2023 was $55.1 million related to the investment in the Netherlands [23]. - The provision for doubtful accounts increased to $9.0 million from $5.4 million, reflecting a rise of 66.7% [31]. - The company experienced a loss on sales of subsidiaries of $8.2 million, up from $1.3 million in the previous year, indicating a significant increase in losses [31]. Currency Impact - The impact of exchange rate changes on cash was a loss of $30.5 million, contrasting with a gain of $17.7 million in 2023 [31].