Adecco SA: Improving Results for the Third Quarter 2004.CHESEREX, SWITZERLAND Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. -- Adecco Adecco S.A. is the largest human resources company in the world, based in Glattbrugg, Switzerland. The company was formed in 1996 as a result of the merger of the French company Ecco and the Swiss Adia Interim, and currently has over 6600 offices in over 75 countries worldwide. : Q3 2004 Highlights (Q3 2004 vs Q3 2003(1)): --Revenues up 5% at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4.5 billion (up 7% in constant currency) --Gross margin stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. at 16.6% in Q3 2004 --Operating income margin at 3.9% in Q3 2004 --Operating income up 7% at EUR 174 million --Net income down 2% to EUR 102 million --EPS of EUR 0.55 for the third quarter compared to EUR 0.56 for the same period last year --Adecco Staffing grew revenues by 5% and contribution by 16% --Ajilon Professional converted a 10% revenue growth into a 48% contribution increase --LHH Career Services revenues and contribution declined by 24% and 68%, respectively, reflecting the market cycle Nine Months Highlights (9 months 2004 vs 9 months 2003): --Revenues up 4% at EUR 12.5 billion --Operating income down 15% at EUR 347 million, but up 5% at EUR 428 million excluding costs of EUR 81 million associated with the 2003 financial reporting delay --Net income down 11% to EUR 227 million --EPS of EUR 1.21 for the nine months compared to EUR 1.36 for the same period last year --Net debt further reduced to EUR 767 million The Adecco Group announced today results for the third quarter of 2004, which include revenues of EUR 4.5 billion and net income of EUR 102 million. For the nine months the Adecco Group reported revenues of EUR 12.5 billion and net income of EUR 227 million. Commenting on the results, Jerome Jerome St. Latin doctor of Church; preeminent biblical scholar. [Christian Hagiog.: Attwater, 185] See : Wisdom Caille, Adecco Group Chief Executive Officer, said: "These are solid results. Gross margin has stabilized and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. margin is at the highest level since 2001. Adecco Staffing is recovering well and continues to demonstrate operational gearing, while Ajilon Professional's sales growth further accelerated and its operating income margin increased. The increase in permanent placement and temp gross margin offset the gross margin decline resulting from the deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration in LHH LHH League for the Hard of Hearing LHH Laguna Honda Hospital (San Francisco, California) LHH L-Band HH LHH Lutheran Hospice of Hope . We are cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for 2005." Sales Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. for the third quarter rose 5% to EUR 4.5 billion, a 7% increase in constant currency compared to the same period last year. This represents a 1% decline in the growth rate compared with Q2, which is due to a lower number of business hours BUSINESS HOURS. The time of the day during which business is transacted. In respect to the time of presentment and demand of bills and notes, business hours generally range through the whole day down to the hours of rest in the evening, except when the paper is payable it a bank or by a in Q3 compared to Q2. On a like-for-like basis, the sales growth rate was maintained in Q3 2004. Gross Margin Year on year gross margin at group level remained stable at 16.6% in Q3 2004. Excluding the LHH Career Services division, gross margin improved 30bp this quarter compared to last year's third quarter. Ajilon Professional reported solid gross margin improvements in Q3 2004 compared to Q3 2003. Adecco Staffing USA remains focused on efforts to increase gross margin, and achieved a solid margin increase in the third quarter compared to the same period a year ago. Operating Costs operating costs npl → gastos mpl operacionales As a percentage of sales the operating cost ratio remained stable at 12.7% in the third quarter, excluding costs associated with the 2003 financial reporting delay of EUR 3 million. Operating costs rose 7% in constant currency in Q3 2004 compared to Q3 2003, primarily due to investments in branch expansion and new hires in fast growth geographies. Stock options expensing and higher Sarbanes-Oxley and compliance costs accounted for 2% of this increase, while costs associated with the 2003 financial reporting delay accounted for 1% of the increase. Operating Income Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved by 10bp to 3.9% in the third quarter compared to the same quarter last year. Operating income was up 7% at EUR 174 million. Net Income and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. (2) Net income was down 2% to EUR 102 million in the third quarter, a basic EPS of EUR 0.55 for Q3 2004 compared to EUR 0.56 for the third quarter last year, principally as a result of an increase in the effective tax rate from 27% in Q3 2003 to 36% in Q3 2004 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc treatment of the reporting delay costs. For the nine months, net income was down 11% to EUR 227 million. Basic EPS for the nine months was EUR 1.21 compared to EUR 1.36 for last year's nine months. Cash Flow and Net Debt Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was EUR 163 million in the nine months, which represents a decrease of EUR 126 million compared with the same period last year. This decrease reflects primarily cash disbursements relating to the financial reporting delay, an increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying due to the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of the UK securitisation program, and an increase in working capital to support sales growth. Net debt was further reduced by EUR 157 million in the nine months to EUR 767 million. Currency Impact Currency fluctuations reduced reported sales by 2% and operating income by 1% in the third quarter. In the nine months, the negative currency impact was 3% and 1% for sales and operating income, respectively. Adecco Staffing Division In this quarter, the division accounted for 89% of group revenue and 87% of total contribution generated by operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . The quarter saw a year on year increase in sales of 7% in constant currency to EUR 4 billion, with all regions delivering positive sales growth in constant currency. Contribution in this quarter grew 16% in constant currency to EUR 186 million, resulting in a 40bp contribution margin increase compared to the third quarter of 2003. --Adecco France grew sales by 2% in the quarter. Contribution progressed in line with sales as a result of strong cost controls and stable margins. --Adecco North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. sales rose 4% in constant currency in the third quarter. Despite some sales growth deceleration, efforts to restore gross margin led to encouraging gross margin enhancement in Q3 2004 compared to the same quarter last year. --Adecco UK grew sales by 5% in constant currency, but with contribution dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. as a result of a change in the methodology for accruing vacation VACATION. That period of time between the end of one term and beginning of another. During vacation, rules and orders are made in such cases as are urgent, by a judge at his chambers. expense, as disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in Q2. --Adecco Japan grew sales by 15% in constant currency. Investments in branch expansion and additional costs for social charges limited the contribution growth to 3%. --Adecco Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. grew sales by 13%. Combined with effective cost management, this increase led to 140bp improvement in return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. in Q3 2004 compared to the same period last year. --Adecco Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). grew sales by 19%, accelerating from a 2% decline posted in Q1 2004 and an increase of 15% in Q2 2004. This performance was achieved together with strong profitability. Developments in Germany continue to reflect the very positive market conditions following the labour market deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. . --Adecco Iberia Iberia (ībĭr`ēə), ancient country of Transcaucasia, roughly the eastern part of present-day Georgia. It was inhabited in earliest times by various tribes, collectively called Iberians by ancient historians, although Herodotus called delivered sales growth of 7% and continued to improve gross margins and profitability as a result of the extension of its service offering into HR solutions. --Adecco Benelux Be·ne·lux An economic union of Belgium, the Netherlands, and Luxembourg, originally established as a customs union in 1948. Noun 1. sales continued to accelerate with a 17% sales increase in Q3 2004 and excellent operational gearing. Ajilon Professional Division In the Ajilon Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. Division, which represented 10% of group revenues, sales for the quarter were up 10% in Euro and 12% in constant currency to EUR 454 million, as the division continued to build momentum. Contribution was up 48% in Euro and 53% in constant currency to EUR 23 million, a 5.1% return on sales, representing a 140bp improvement over the third quarter of 2003. Amongst the major business units, Ajilon UK Consulting continued sales acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. to 29% at constant currency in Q3 2004 together with 70bp gross margin increase. LHH Career Services Division In the LHH Career Services Division, which represented 1% of group sales and 2% of contribution generated by operating units, revenues fell by 24% in Euro and 19% in constant currency to EUR 35 million, due to continuing cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. deceleration in demand. Contribution declined by 68% (down 66% in constant currency) to EUR 4 million. Despite cyclical deceleration, LHH continued to deliver the highest profitability rate in the Group. Revenue growth in this counter-cyclical business is positioned to resume as M&A activity picks up. Class Action Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Adecco is defending this action vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. and recently filed a motion to dismiss dismiss v. the ruling by a judge that all or a portion (one or more of the causes of action) of the plaintiff's lawsuit is terminated (thrown out) at that point without further evidence or testimony. the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: class action complaint. At this stage, the Adecco Group cannot predict when the class action litigation will be resolved or whether the ultimate resolution of this matter will have a material adverse effect on the Adecco Group's consolidated financial position, results of operations or cash flows. U.S. State A U.S. state is any one of the fifty subnational entities of the United States, although four states use the official title "commonwealth". The separate state governments and the federal government share sovereignty, in that an American is a citizen both of the federal entity and Unemployment Tax Reviews As previously disclosed in the half-year report 2004, some states have advised Adecco US and other companies that they are reviewing the unemployment tax rates applied as a result of some past business reorganizations in the U.S. As of this date, Adecco US has not yet received any assessments from any state. Liability, if any, will depend on the resolution of future assessments and cannot be reasonably estimated at this time but may be material to the Adecco Group's consolidated financial position, results of operations or cash flows. Adecco US is cooperating with the authorities and intends to evaluate and, as appropriate, defend any such assessments. Outlook We expect positive sales growth to continue this year in line with market developments and we are cautiously optimistic about our prospects for 2005. Our focus on margin enhancement will remain strong, supported by expansion of permanent placement activity and professional staffing. Our aspiration aspiration /as·pi·ra·tion/ (as?pi-ra´shun) 1. the drawing of a foreign substance, such as the gastric contents, into the respiratory tract during inhalation. 2. is to further improve gross margin at Group level through price discipline and management of the business mix. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Adecco S.A. (the "Company") as of the date of this release, and we assume no duty to update any such forward-looking statements. Factors that could affect the Company's forward-looking statements include, among other things: the outcome of investigations by governmental agencies or stock exchanges; the assertion (programming) assertion - 1. An expression which, if false, indicates an error. Assertions are used for debugging by catching can't happen errors. 2. In logic programming, a new fact or rule added to the database by the program at run time. and resolution of US unemployment tax assessments; the pace of economic recovery in various regions and the demand for temporary staffing; the impact and result of any litigation (including US class action litigation); any adverse developments in existing commercial relationships, disputes or legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of the Company's stock price; intense competition in the markets in which the Company competes; and negative reactions from the Company's shareholders, creditors or vendors with respect to any of the foregoing matters. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Please refer to the Company's Annual Report on Form 20-F for the year ended December December: see month. 28, 2003, and other reports filed with or submitted to the U.S. Securities and Exchange Commission from time to time, for a further discussion of the factors and risks associated with our business. About Adecco Adecco S.A. is a Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes 500 company and the global leader in HR Solutions. The Adecco Group network connects up to 700,000 associates with business clients each day through its network of 29,000 employees and 6,000 offices in 71 territories around the world. Registered in Switzerland, and managed by a multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) team with expertise in markets spanning the globe, the Adecco Group delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates. The Adecco Group comprises three Divisions: Adecco Staffing, Ajilon Professional and LHH Career Services. In Adecco Staffing, the Adecco network focuses on flexible staffing solutions for global industries in transition, including automotive, banking, electronics, logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. ; Ajilon Professional offers an unrivalled range of specialised Adj. 1. specialised - developed or designed for a special activity or function; "a specialized tool" specialized specific - (sometimes followed by `to') applying to or characterized by or distinguishing something particular or special or unique; "rules with branded businesses; LHH Career Services encompasses our portfolio of outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. and coaching consultancy businesses. Adecco S.A. is registered in Switzerland (ISIN Isin (ĭs`ĭn), capital of an ancient Semitic kingdom of N Babylonia. The city became important after the third dynasty of Ur fell to the Elamites and the Amorites (c.2025 B.C.). The phase from c.2025–c.1763 B.C. : CH0012138605) and listed on the Swiss Stock Exchange with trading on Virt-x (SWX/VIRT-X:ADEN), the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE NYSE See: New York Stock Exchange :ADO) and Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the London Stock Exchange. - Premier Marche Marche, region, Italy Marche (mär`kā) or the Marches, region (1991 pop. 1,429,205), 3,742 sq mi (9,692 sq km), E central Italy, extending from the eastern slopes of the Apennines to the Adriatic Sea. (EURONEXT  Euronext N.V. is a pan-European stock exchange based in Paris[1] : ADE).Further information can be found at the Investor Relations Investor relations The process by which the corporation communicates with its investors. page at www.adecco.com. (1)Unless stated otherwise (2)EPS: Earnings per share
Consolidated Statements of Operations
EUR millions Three months ended
-------------------------------------
September September % change
-----------
26, 2004 28, 2003 EUR Constant
------------ ------------ --- --------
Net service revenues 4,468 4,243 5% 7%
Direct costs of services (3,725) (3,537)
------------ ------------
Gross margin 743 706
16.6% 16.6%
Selling, general &
administrative expenses (569) (543)
Amortisation of intangibles 0 0
------------ ------------
Operating income 174 163 7% 8%
3.9% 3.8%
Interest and other expenses (14) (19)
Provision for income taxes (58) (39)
-------------------------
Income from continuing
operations 102 105 -3%
2.3% 2.5%
Income (loss) from discontinued
operations 0 (1)
------------ ------------
Net income 102 104 -2%
============ ============
2.3% 2.5%
--------------------------------
Basic earnings per share:
Continuing operations 0.55 0.56
Discontinued operations - -
------------ ------------
Net income 0.55 0.56
Diluted earnings per share:
Continuing operations 0.52 0.55
Discontinued operations - 0.00
------------ ------------
Net income 0.52 0.55
Weighted average shares 187,009,172 186,713,661
Diluted shares 201,469,544 196,192,061
EUR millions Nine months ended
-------------------------------------------
September September % change
-------------
26, 2004 28, 2003 EUR Constant
---------------- ----------- --- --------
Net service revenues 12,548 12,096 4% 7%
Direct costs of services (10,459) (10,031)
---------------- ------------
Gross margin 2,089 2,065
16.6% 17.1%
Selling, general &
administrative expenses (1,741) (1,654)
Amortisation of intangibles (1) (2)
---------------- ------------
Operating income 347 409 -15% -14%
2.8% 3.4%
Interest and other expenses (39) (58)
Provision for income taxes (111) (95)
---------------- ------------
Income from continuing
operations 197 256 -23%
1.6% 2.1%
Income (loss) from
discontinued operations 30 (2)
---------------- ------------
Net income 227 254 -11%
================ ============
1.8% 2.1%
---------------------------
Basic earnings per share:
Continuing operations 1.05 1.37
Discontinued operations 0.16 (0.01)
---------------- ------------
Net income 1.21 1.36
Diluted earnings per share:
Continuing operations 1.02 1.35
Discontinued operations 0.15 (0.01)
---------------- ------------
Net income 1.17 1.34
Weighted average shares 186,996,646 186,703,342
Diluted shares 201,690,611 193,453,847
Net Service Revenues and Operating Income by Division & Geographical
Segment
Q3 2004 Net Services Revenues Operating Income (1)
------------------------ ----------------------
EUR millions 2004 2003 Variance % 2004 2003 Variance %
------------ ------------
EUR Constant EUR Constant
======================== ======================
Adecco Staffing
Europe 2,745 2,569 7 7 156 138 14 14
North America 732 763 -4 4 13 7 78 94
Asia Pacific 404 356 13 14 16 14 8 7
Rest of World 98 95 4 14 1 2 -27 -18
------------------- ------------------------ ----------------------
Total 3,979 3,783 5 7 186 161 16 16
=================== ------------------------ ----------------------
Ajilon Professional
Europe 222 188 18 14 10 6 68 61
North America 174 173 1 9 10 8 31 46
Asia Pacific 58 52 12 12 3 2 59 59
Rest of World
------------------- ------------------------ ----------------------
Total 454 413 10 12 23 16 48 53
=================== ------------------------ ----------------------
LHH Career Services
Europe 5 7 -27 -27 -2 2 -152 -152
North America 30 40 -24 -17 6 12 -56 -52
Asia Pacific
Rest of World
------------------- ------------------------ ----------------------
Total 35 47 -24 -19 4 14 -68 -66
=================== ------------------------ ----------------------
------------------- ------------------------ ----------------------
Total Operating Units 4,468 4,243 5 7 213 191 12 13
=================== ------------------------ ----------------------
Adecco Group Summary
By Division
Adecco Staffing 3,979 3,783 5 7 186 161 16 16
Ajilon Professional 454 413 10 12 23 16 48 53
LHH Career Services 35 47 -24 -19 4 14 -68 -66
By Region
Europe 2,972 2,764 8 7 164 146 14 14
North America 936 976 -4 4 29 27 5 15
Asia Pacific 462 408 13 14 19 16 13 12
Rest of World 98 95 4 14 1 2 -27 -18
Corporate Expenses -39 -28
Amortisation of
Intangibles 0 0
------------------- ------------------------ ----------------------
Adecco Group 4,468 4,243 5 7 174 163 7 8
=================== ------------------------ ----------------------
(1) Contribution (operating income before amortisation) at unit level.
Net Service Revenues and Operating Income by Division & Geographical
Segment
Sep YTD 2004 Net Services Revenues Operating Income (1)
-------------------------- ----------------------
EUR millions 2004 2003 Variance % 2004 2003 Variance %
------------ -------------
EUR Constant EUR Constant
========================== ======================
Adecco Staffing
Europe 7,544 7,093 6 6 361 328 10 10
North America 2,115 2,232 -5 5 26 13 101 113
Asia Pacific 1,170 1,054 11 12 40 43 -7 -7
Rest of World 288 289 0 10 7 3 155 175
------------------- -------------------------- ----------------------
Total 11,117 10,668 4 7 434 387 12 13
=================== -------------------------- ----------------------
Ajilon Professional
Europe 640 575 11 10 25 15 66 60
North America 509 538 -5 4 27 27 1 12
Asia Pacific 165 149 10 8 8 6 25 24
Rest of World
------------------- --------------------------- ----------------------
Total 1,314 1,262 4 8 60 48 25 30
=================== --------------------------- ----------------------
LHH Career Services
Europe 19 24 -21 -21 -1 5 -110 -110
North America 98 142 -31 -22 22 46 -53 -47
Asia Pacific
Rest of World
------------------- --------------------------- ----------------------
Total 117 166 -29 -22 21 51 -58 -53
=================== --------------------------- ----------------------
------------------- --------------------------- ----------------------
Total Operating
Units 12,548 12,096 4 7 515 486 6 8
=================== --------------------------- ----------------------
Adecco Group Summary
By Division
Adecco Staffing 11,117 10,668 4 7 434 387 12 13
Ajilon Professional 1,314 1,262 4 8 60 48 25 30
LHH Career Services 117 166 -29 -22 21 51 -58 -53
By Region
Europe 8,203 7,692 7 7 385 348 11 11
North America 2,722 2,912 -7 4 75 86 -13 -3
Asia Pacific 1,335 1,203 11 12 48 49 -3 -3
Rest of World 288 289 0 10 7 3 155 175
Corporate Expenses -167 -75
Amortisation of
Intangibles -1 -2
------------------- --------------------------- ----------------------
Adecco Group 12,548 12,096 4 7 347 409 -15 -14
=================== --------------------------- ----------------------
(1) Contribution (operating income before amortisation) at unit level.
Consolidated Balance Sheets
EUR millions
September 26, December 28,
2004 2003
-------------- ------------
ASSETS
Current Assets
Cash and cash equivalents 711 565
Short-term investments 348 403
Trade accounts receivable, net 3,353 2,947
Other current assets 240 308
Current assets from discontinued
operations - 14
-------------- ------------
Total current assets 4,652 4,237
Property, equipment and leasehold
improvements, net 283 327
Other assets 433 438
Intangibles, net 3 3
Goodwill, net 1,256 1,241
Other assets from discontinued operations - 60
-------------- ------------
Total assets 6,627 6,306
============== ============
LIABILITIES
Current liabilities
Short-term debt and current maturities of
long-term debt 537 377
Accounts payable and accrued expenses 2,973 2,762
Current liabilities from discontinued
operations - 12
-------------- ------------
Total current liabilities 3,510 3,151
Long-term debt 1,289 1,479
Other liabilities 127 125
Other liabilities from discontinued
operations - 4
-------------- ------------
Total liabilities 4,926 4,759
-------------- ------------
SHAREHOLDERS' EQUITY
Common shares 116 116
Additional paid-in capital 2,018 1,993
Accumulated deficit (462) (602)
Accumulated other comprehensive income 29 45
-------------- ------------
1,701 1,552
Less: Treasury stock, at cost 0 (5)
-------------- ------------
Total shareholders' equity 1,701 1,547
-------------- ------------
Total liabilities and shareholders' equity 6,627 6,306
============== ============
Consolidated Statements of Cash Flows
EUR millions Nine months ended
------------------------
September September
26, 2004 28, 2003
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 227 254
Adjustments to reconcile net income (loss) to
net cash and cash equivalents from operating
activities of continuing operations:
(Income) / loss from discontinued
operations (30) 2
Depreciation 90 96
Amortisation of intangibles 1 2
Other charges 51 29
Changes in operating assets and liabilities
of acquisitions:
Trade accounts receivable (420) (356)
Accounts payable and accrued expenses 211 219
Other current assets 26 50
Non-current assets and liabilities 7 (7)
----------- ------------
Cash flows from operating activities of
continuing operations 163 289
----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, net of proceeds (45) (45)
Change of short-term investments 76 (10)
Other investing activities (9) 5
----------- ------------
Cash flows from (used in) investing activities
of continuing operations 22 (50)
----------- ------------
CASH FLOW FROM FINANCING ACTIVITIES
Net increase (decrease) in short-term debt (7) (52)
Increase in long-term debt 0 584
Repayment of long-term debt (36) (8)
Dividends paid to shareholders (86) (75)
Common stock options exercised 6 3
Other financing activities 20 108
----------- ------------
Cash flows from (used in) financing activities
of continuing operations (103) 560
----------- ------------
Effect of exchange rate changes on cash 0 (26)
Net proceeds from sale of discontinued
operations 64 -
----------- ------------
Net increase in cash and cash equivalents 146 773
Cash and cash equivalents:
Beginning of period 565 208
----------- ------------
End of period 711 981
=========== ============
----------------------------------------------------------------------
Supplemental disclosure of non-cash investing
activities:
--------------------------------------------------------
Stock received in the sale of jobpilot 24 -
----------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion