Manpower Powers Through Q3: Fool by Numbers

On Oct. 17, Manpower (NYSE: MAN) released third-quarter earnings for the period ended Sept. 30.

• Favorable foreign currency translations added $0.08 to the diluted earnings-per-share figure.
• The company's strong geographic presence and business portfolio were evident in the 15% rise in revenue.
• While management showed slight concern for the near future, it doesn't believe the company will be significantly affected and is anticipating full-year diluted earnings per share of $1.50 to $1.54.
• Manpower is a three-star stock (out of a possible five) in our CAPS community, but lags behind rivals Kforce (Nasdaq: KFRC) and Labor Ready (NYSE: LRW), which both boast four stars.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q3 2007	Q3 2006	Change
Sales	$5,295.4	$4,590.0	15.4%
Net Profit	$131.7	$97.0	35.8%
EPS	$1.57	$1.12	40.2%
Diluted Shares	84.1	86.7	(3%)

*Includes income from continuous operations. Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2007	Q3 2006	Change*
Gross Margin	18.4%	17.5%	0.9
Operating Margin	4.2%	3.6%	0.6
Net Margin	2.5%	2.1%	0.4

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2007	Q3 2006	Change
Cash + ST Invest.	$538.8	$484.5	11.2%
Accounts Rec.	$4,537.3	$3,772.1	20.3%

Liabilities	Q3 2007	Q3 2006	Change
Accounts Payable	$1,011.3	$883.6	14.5%
Long-Term Debt	$855.3	$759.9	12.6%

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2007	YTD 2006	Change
Cash From Ops.	$299.2	$226.1	32.3%
Capital Expenditures*	$166.0	$55.1	201.3%
Free Cash Flow	$133.2	$171.0	(22.1%)

*Includes business acquisitions.

Free cash flow is a Fool's best friend.

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