- Total revenue including billable expenses was $2.71
billion
- Revenue before billable expenses ("net revenue") was flat at
$2.33 billion, with an organic increase of 1.7%
- Reported net income was $214.5 million
- Adjusted EBITA before restructuring charges was $338.9
million
- Margin of adjusted EBITA before restructuring charges was
14.6% on revenue before billable expenses
- Diluted earnings per share was $0.57 as reported and $0.61
as adjusted
Philippe Krakowsky, CEO of IPG:
“Second quarter performance was solid, with
moderate acceleration in organic growth, as well as margin
expansion compared to the same period last year. Consistent with
our longer-term performance, IPG Mediabrands and IPG Health led the
way in the quarter. We also saw notable contributions to growth
from Deutsch LA, Golin and Acxiom. Creatively, our agencies
continued to garner exceptional levels of recognition for the
quality of their ideas and innovation, across all marketing
disciplines.
“The most successful businesses in our portfolio
continue to demonstrate specialized, high-value services that
identify and reach audiences with greater precision and
accountability, in turn leading to growth in our clients’ brands
and businesses. Much of this work is powered by our
industry-leading audience data and a technology stack that unifies
the marketing funnel. This enables marketers to assess and
understand the value of their investments, whether on technology
platforms, in earned and paid media, or in other key sales and
retail channels. We continue to focus on these growth areas of the
business, as well as on integrating generative AI tools and
technologies into our content and creative offerings.
“Given results in the year to date, trends
within our client roster, and macro sentiment, we expect to achieve
full-year organic growth of approximately 1% and, at that level of
growth, continue to target adjusted EBITA margin of 16.6%.
Additional areas for value creation include our strong balance
sheet and liquidity, as well as our ongoing commitment to capital
returns.”
Summary
Revenue
- Second quarter 2024: Total revenue, which includes billable
expenses, was $2.71 billion, compared $2.67 billion in the second
quarter of 2023.
- Revenue before billable expenses ("net revenue") was $2.33
billion, a decrease of 0.1% from the second quarter
of 2023.
- The organic increase of net revenue was 1.7% from the second
quarter of 2023.
- First half 2024: Total revenue, which includes billable
expenses, was $5.21 billion, compared $5.19 billion in the first
half of 2023.
- Revenue before billable expenses ("net revenue") was $4.51
billion, an increase of 0.1% from the first half
of 2023.
- The organic increase of net revenue was 1.5% from the first
half of 2023.
Operating Results
- In the second quarter of 2024, operating income was $318.2
million compared to $310.7 million in 2023. Adjusted EBITA before
restructuring charges was $338.9 million compared to $330.2 million
for the same period in 2023. Second quarter 2024 margin of adjusted
EBITA before restructuring charges was 14.6% on revenue before
billable expenses.
- In the first half of 2024, operating income was $502.4 million
compared to $499.0 million in 2023. Adjusted EBITA before
restructuring charges was $544.4 million compared to $541.0 million
for the same period in 2023. First half 2024 margin of adjusted
EBITA before restructuring charges was 12.1% on revenue before
billable expenses.
- Refer to reconciliations in the appendix within this press
release for further detail.
Net Results
- In the second quarter of 2024, the income tax provision was
$75.6 million on income before income taxes of $295.7 million.
- Second quarter 2024 net income available to IPG common
stockholders was $214.5 million, resulting in earnings of $0.57 per
basic and diluted share compared to earnings of $0.69 per basic
share and $0.68 per diluted share for the same period in 2023.
Adjusted earnings were $0.61 per diluted share compared to adjusted
earnings per diluted share of $0.74 a year ago. In 2023, earnings
per share, both as reported and adjusted, included a benefit of
$0.17 per diluted share related to the settlement of U.S. Federal
Income Tax Audits for the years 2017-2018. Second quarter 2024
adjusted earnings excludes after-tax amortization of acquired
intangibles of $16.2 million, after-tax restructuring charges of
$0.2 million and an after-tax gain of $1.5 million on the sales of
businesses.
- In the first half of 2024, the income tax provision was $122.9
million on income before income taxes of $456.3 million.
- First half 2024 net income available to IPG common stockholders
was $324.9 million, resulting in earnings of $0.86 per basic and
diluted share compared to earnings of $1.01 per basic and diluted
share for the same period in 2023. Adjusted earnings were $0.96 per
diluted share compared to adjusted earnings per diluted share of
$1.11 a year ago. In 2023, earnings per share, both as reported and
adjusted, included a benefit of $0.17 per diluted share related to
the settlement of U.S. Federal Income Tax Audits for the years
2017-2018. First half 2024 adjusted earnings excludes after-tax
amortization of acquired intangibles of $32.7 million, after-tax
restructuring charges of $0.7 million and an after-tax loss of $6.4
million on the sales of businesses.
- Refer to reconciliations in the appendix within this press
release for further detail.
Operating Results
RevenueRevenue before billable expenses
of $2.33 billion in the second quarter of 2024 decreased 0.1%
compared with the same period in 2023. Compared to the second
quarter of 2023, the effect of foreign currency translation was
negative 0.6%, the impact of net dispositions was negative 1.2%,
and the resulting organic increase of net revenue was 1.7%.
Revenue before billable expenses of $4.51
billion in the first half of 2024 increased 0.1% compared with the
same period in 2023. Compared to the first half of 2023, the effect
of foreign currency translation was negative 0.2%, the impact of
net dispositions was negative 1.2%, and the resulting organic
increase of net revenue was 1.5%.
Operating ExpensesIn the second quarter
of 2024, total operating expenses, excluding billable expenses,
decreased 0.4%. In the first half of 2024, total operating
expenses, excluding billable expenses, remained flat when compared
to the first half of 2023.
In the second quarter of 2024, staff cost ratio,
which is total salaries and related expenses as a percentage of
revenue before billable expenses, decreased to 66.9% compared to
68.7% for the same period in 2023. Total salaries and related
expenses in the second quarter of 2024 were $1.56 billion, a
decrease of 2.6% from a year ago. The decrease was primarily driven
by decreased base salaries, benefits and tax. In the first half of
2024, staff cost ratio decreased to 69.4% compared to 70.5% for the
same period in 2023. Total salaries and related expenses in the
first half of 2024 were $3.13 billion, a decrease of 1.4% from a
year ago. The decrease was primarily driven by factors similar to
those noted above for the second quarter of 2024, partially offset
by increased severance expense.
In the second quarter of 2024, office and other
direct expenses as a percentage of revenue before billable expenses
increased to 15.4% compared to 14.6% for the same period in 2023.
Office and other direct expenses were $358.4 million in the second
quarter of 2024, an increase of 5.3% from a year ago, primarily
driven by increases in client service costs partially offset by
decreases in occupancy expense. In the first half of 2024, office
and other direct expenses as a percentage of revenue before
billable expenses increased to 15.1% compared to 14.9% for the same
period in 2023. Office and other direct expenses were $680.5
million in the first half of 2024, an increase of 1.4% from a year
ago, primarily driven by factors similar to those noted above for
the second quarter of 2024.
Selling, general and administrative ("SG&A")
expenses were $27.6 million in the second quarter of 2024, compared
to $13.9 million a year ago, primarily due to increases in
technology & software expenses and base salaries, benefits and
tax. SG&A expenses were $65.6 million in the first half of
2024, compared to $26.8 million a year ago, primarily due to
factors similar to those noted above for the second quarter of
2024.
Depreciation and amortization expense decreased
by 2.3% and 2.1% during the second quarter and the first half of
2024, respectively.
Non-Operating Results and TaxNet interest
expense decreased by $6.4 million to $21.3 million in the second
quarter of 2024 from a year ago, primarily attributable to higher
interest rates on net deposits. Net interest expense decreased by
$7.9 million to $35.4 million in the first half of 2024 from a year
ago, primarily due to factors similar to those noted above for the
second quarter of 2024.
Other expense, net was $1.2 million in the
second quarter of 2024, and primarily related to pension and
postretirement costs partially offset by gains on sales of
businesses and the classification of certain assets and liabilities
as held for sale. Other expense, net was $10.7 million in the first
half of 2024, which primarily related to losses on sales of
businesses and the classification of certain assets and liabilities
as held for sale, as well as pension and postretirement costs.
The income tax provision in the second quarter
of 2024 was $75.6 million on income before income taxes of $295.7
million. This compares to an income tax provision of $10.6 million
for the second quarter of 2023 on income before income taxes of
$278.6 million, which included a benefit of $64.2 million related
to the settlement of U.S. Federal Income Tax Audits for the years
2017-2018, which was primarily non-cash. The income tax provision
in the first half of 2024 was $122.9 million on income before
income taxes of $456.3 million. This compares to an income tax
provision of $44.4 million for the first half of 2023 on income
before income taxes of $444.6 million, which included a benefit of
$64.2 million related to the settlement of U.S. Federal Income Tax
Audits for the years 2017-2018, which was primarily non-cash.
Balance SheetAt June 30, 2024, cash
and cash equivalents totaled $1.55 billion, compared to $2.39
billion at December 31, 2023 and $1.63 billion on
June 30, 2023. Total debt was $2.94 billion at June 30,
2024, compared to $3.20 billion at December 31, 2023.
Share Repurchase ProgramDuring the first
half of 2024, the Company repurchased 4.1 million shares of its
common stock at an aggregate cost of $130.1 million and an average
price of $31.77 per share, including fees.
Common Stock DividendDuring the second
quarter of 2024, the Company declared and paid a common stock cash
dividend of $0.330 per share, for a total of $123.9 million.
For further information regarding the Company's
financial results as well as certain non-GAAP measures including
organic revenue before billable expenses change, adjusted EBITA,
adjusted EBITA before restructuring charges and adjusted earnings
per diluted share, and the reconciliations thereof, please refer to
the appendix within this press release and our Investor
Presentation filed on Form 8-K herewith and available on our
website, www.interpublic.com.
# # #
About Interpublic
Interpublic (NYSE: IPG) (www.interpublic.com) is
a values-based, data-fueled, and creatively-driven provider of
marketing solutions. Home to some of the world’s best-known and
most innovative communications specialists, IPG global brands
include Acxiom, Craft, FCB, FutureBrand, Golin, Huge, Initiative,
IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann,
Mediahub, Momentum, MRM, MullenLowe Global, Octagon, R/GA, UM,
Weber Shandwick and more. IPG is an S&P 500 company with total
revenue of $10.89 billion in 2023.
# # #
Contact Information
Tom Cunningham(Press)(212) 704-1326
Jerry Leshne(Analysts, Investors)(212)
704-1439
Cautionary Statement
This release contains forward-looking
statements. Statements in this report that are not historical
facts, including statements regarding guidance, goals, intentions,
and expectations as to future plans, trends, events, or future
results of operations or financial position, constitute
forward-looking statements. Forward-looking statements are based on
current expectations and assumptions that are subject to risks and
uncertainties, which could cause our actual results and outcomes to
differ materially from those reflected in the forward-looking
statements, and are subject to change based on a number of factors,
including those outlined under item 1A, Risk Factors, in our most
recent Annual Report on Form 10-K and our quarterly reports on Form
10-Q and our other filings with the Securities and Exchange
Commission ("SEC"). Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to update
publicly any of them in light of new information or future
events.
Forward-looking statements involve inherent
risks and uncertainties. A number of important factors could cause
actual results to differ materially from those contained in any
forward-looking statement. Such factors include, but are not
limited to, the following:
- the effects of a challenging economy on the demand for our
advertising and marketing services, on our clients’ financial
condition and on our business or financial condition;
- our ability to attract new clients and retain existing
clients;
- our ability to retain and attract key employees;
- risks associated with the effects of global, national and
regional economic and political conditions, including counterparty
risks and fluctuations in interest rates, inflation rates and
currency exchange rates;
- the economic or business impact of military or political
conflict in key markets;
- the impacts on our business of any pandemics, epidemics,
disease outbreaks or other public health crises;
- risks associated with assumptions we make in connection with
our critical accounting estimates, including changes in assumptions
associated with any effects of a challenging economy;
- potential adverse effects if we are required to recognize
impairment charges or other adverse accounting-related
developments;
- developments from changes in the regulatory and legal
environment for advertising and marketing services companies around
the world, including laws and regulations related to data
protection and consumer privacy; and
- the impact on our operations of general or directed
cybersecurity events.
Investors should carefully consider the
foregoing factors and the other risks and uncertainties that may
affect our business, including those outlined in more detail under
Item 1A, Risk Factors, in our most recent Annual Report on Form
10-K and our quarterly reports on Form 10-Q and our other SEC
filings. Investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to update or revise publicly
any of them in light of new information, future events, or
otherwise.
APPENDIX
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND
SUBSIDIARIESCONSOLIDATED SUMMARY OF EARNINGSSECOND QUARTER REPORT
2024 AND 2023(Amounts in Millions except Per Share
Data)(UNAUDITED) |
| |
|
|
| |
|
Three Months Ended June 30, |
| |
|
2024 |
|
2023 |
|
Fav. (Unfav.)% Variance |
|
Revenue: |
|
|
|
|
|
| |
Revenue before Billable
Expenses |
$2,327.1 |
|
$2,328.5 |
|
(0.1) % |
| |
Billable Expenses |
382.9 |
|
338.0 |
|
13.3 % |
| Total Revenue |
2,710.0 |
|
2,666.5 |
|
1.6 % |
| |
|
|
|
|
|
|
| Operating
Expenses: |
|
|
|
|
|
| |
Salaries and Related
Expenses |
1,557.6 |
|
1,598.6 |
|
2.6 % |
| |
Office and Other Direct
Expenses |
358.4 |
|
340.5 |
|
(5.3) % |
| |
Billable Expenses |
382.9 |
|
338.0 |
|
(13.3) % |
| |
Cost of Services |
2,298.9 |
|
2,277.1 |
|
(1.0) % |
| |
Selling, General and
Administrative Expenses |
27.6 |
|
13.9 |
|
(98.6) % |
| |
Depreciation and
Amortization |
65.0 |
|
66.5 |
|
2.3 % |
| |
Restructuring Charges |
0.3 |
|
(1.7) |
|
>(100)% |
| Total Operating
Expenses |
2,391.8 |
|
2,355.8 |
|
(1.5) % |
| Operating
Income |
318.2 |
|
310.7 |
|
2.4 % |
| |
|
|
|
|
|
|
| Expenses
and Other Income: |
|
|
|
|
|
| |
Interest Expense |
(57.9) |
|
(55.8) |
|
|
| |
Interest Income |
36.6 |
|
28.1 |
|
|
| |
Other Expense, Net |
(1.2) |
|
(4.4) |
|
|
| Total (Expenses)
and Other Income |
(22.5) |
|
(32.1) |
|
|
| |
|
|
|
|
|
|
| Income
Before Income Taxes |
295.7 |
|
278.6 |
|
|
| |
Provision for Income
Taxes |
75.6 |
|
10.6 |
|
|
| Income of
Consolidated Companies |
220.1 |
|
268.0 |
|
|
| |
Equity in Net (Loss) Income of
Unconsolidated Affiliates |
(0.5) |
|
0.7 |
|
|
| Net
Income |
219.6 |
|
268.7 |
|
|
| |
Net Income Attributable to
Non-controlling Interests |
(5.1) |
|
(3.2) |
|
|
| Net Income
Available to IPG Common Stockholders |
$214.5 |
|
$265.5 |
|
|
| |
|
|
|
|
|
| Earnings
Per Share Available to IPG Common Stockholders: |
|
|
|
|
|
|
Basic |
$0.57 |
|
$0.69 |
|
|
|
Diluted |
$0.57 |
|
$0.68 |
|
|
| |
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding: |
|
|
|
|
|
|
Basic |
376.3 |
|
385.7 |
|
|
|
Diluted |
378.7 |
|
387.7 |
|
|
| |
|
|
|
|
|
| Dividends Declared
Per Common Share |
$0.330 |
|
$0.310 |
|
|
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND
SUBSIDIARIESCONSOLIDATED SUMMARY OF EARNINGSSECOND QUARTER REPORT
2024 AND 2023(Amounts in Millions except Per Share
Data)(UNAUDITED) |
| |
|
|
| |
|
Six Months Ended June 30, |
| |
|
2024 |
|
2023 |
|
Fav. (Unfav.)% Variance |
|
Revenue: |
|
|
|
|
|
| |
Revenue before Billable
Expenses |
$4,510.0 |
|
$4,505.4 |
|
0.1 % |
| |
Billable Expenses |
695.9 |
|
682.1 |
|
2.0 % |
| Total Revenue |
5,205.9 |
|
5,187.5 |
|
0.4 % |
| |
|
|
|
|
|
|
| Operating
Expenses: |
|
|
|
|
|
| |
Salaries and Related
Expenses |
3,130.4 |
|
3,175.9 |
|
1.4 % |
| |
Office and Other Direct
Expenses |
680.5 |
|
670.8 |
|
(1.4) % |
| |
Billable Expenses |
695.9 |
|
682.1 |
|
(2.0) % |
| |
Cost of Services |
4,506.8 |
|
4,528.8 |
|
0.5 % |
| |
Selling, General and
Administrative Expenses |
65.6 |
|
26.8 |
|
>(100)% |
| |
Depreciation and
Amortization |
130.2 |
|
133.0 |
|
2.1 % |
| |
Restructuring Charges |
0.9 |
|
(0.1) |
|
>(100)% |
| Total Operating
Expenses |
4,703.5 |
|
4,688.5 |
|
(0.3) % |
| Operating
Income |
502.4 |
|
499.0 |
|
0.7 % |
| |
|
|
|
|
|
|
| Expenses
and Other Income: |
|
|
|
|
|
| |
Interest Expense |
(120.7) |
|
(105.5) |
|
|
| |
Interest Income |
85.3 |
|
62.2 |
|
|
| |
Other Expense, Net |
(10.7) |
|
(11.1) |
|
|
| Total (Expenses)
and Other Income |
(46.1) |
|
(54.4) |
|
|
| |
|
|
|
|
|
|
| Income
Before Income Taxes |
456.3 |
|
444.6 |
|
|
| |
Provision for Income
Taxes |
122.9 |
|
44.4 |
|
|
| Income of
Consolidated Companies |
333.4 |
|
400.2 |
|
|
| |
Equity in Net (Loss) Income of
Unconsolidated Affiliates |
(0.2) |
|
0.6 |
|
|
| Net
Income |
333.2 |
|
400.8 |
|
|
| |
Net Income Attributable to
Non-controlling Interests |
(8.3) |
|
(9.3) |
|
|
| Net Income
Available to IPG Common Stockholders |
$324.9 |
|
$391.5 |
|
|
| |
|
|
|
|
|
| Earnings
Per Share Available to IPG Common Stockholders: |
|
|
|
|
|
|
Basic |
$0.86 |
|
$1.01 |
|
|
|
Diluted |
$0.86 |
|
$1.01 |
|
|
| |
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding: |
|
|
|
|
|
|
Basic |
377.4 |
|
385.8 |
|
|
|
Diluted |
379.7 |
|
387.6 |
|
|
| |
|
|
|
|
|
| Dividends Declared
Per Common Share |
$0.660 |
|
$0.620 |
|
|
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIESU.S. GAAP
RECONCILIATION OF NON-GAAP ADJUSTED RESULTS(Amounts in Millions
except Per Share Data)(UNAUDITED) |
| |
Three Months Ended June 30, 2024 |
|
|
As Reported |
|
Amortization of Acquired Intangibles |
|
Restructuring Charges |
|
Net Gains on Sales of Businesses1 |
|
Adjusted Results
(Non-GAAP) |
| Operating Income and
Adjusted EBITA before Restructuring Charges2 |
$318.2 |
|
$(20.4) |
|
$(0.3) |
|
|
|
$338.9 |
| |
|
|
|
|
|
|
|
|
|
|
Total (Expenses) and Other Income3 |
(22.5) |
|
|
|
|
|
$2.1 |
|
(24.6) |
| Income Before Income
Taxes |
295.7 |
|
(20.4) |
|
(0.3) |
|
2.1 |
|
314.3 |
|
Provision for Income Taxes |
75.6 |
|
4.2 |
|
0.1 |
|
(0.6) |
|
79.3 |
|
Equity in Net Loss of Unconsolidated Affiliates |
(0.5) |
|
|
|
|
|
|
|
(0.5) |
|
Net Income Attributable to Non-controlling Interests |
(5.1) |
|
|
|
|
|
|
|
(5.1) |
| Net Income Available
to IPG Common Stockholders |
$214.5 |
|
$(16.2) |
|
$(0.2) |
|
$1.5 |
|
$229.4 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding - Basic |
376.3 |
|
|
|
|
|
|
|
376.3 |
|
Dilutive effect of stock options and restricted shares |
2.4 |
|
|
|
|
|
|
|
2.4 |
| Weighted-Average
Number of Common Shares Outstanding - Diluted |
378.7 |
|
|
|
|
|
|
|
378.7 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Earnings per Share
Available to IPG Common Stockholders4: |
|
|
|
|
|
|
|
|
|
| Basic |
$0.57 |
|
$(0.04) |
|
$(0.00) |
|
$0.00 |
|
$0.61 |
| Diluted |
$0.57 |
|
$(0.04) |
|
$(0.00) |
|
$0.00 |
|
$0.61 |
| |
|
|
|
|
|
|
|
|
|
| 1 Primarily
relates to gains on complete dispositions of businesses and the
classification of certain assets as held for sale. |
| 2 Refer to
non-GAAP reconciliation of Adjusted EBITA before Restructuring
Charges on page A5 in the appendix. |
| 3 Consists of
non-operating expenses including interest expense, interest income
and other expense, net. |
| 4 Earnings per
share amounts are calculated on an unrounded basis but rounded for
purposes of presentation. |
| Note: Management
believes the resulting comparisons provide useful supplemental data
that, while not a substitute for GAAP measures, allow for greater
transparency in the review of our financial and operational
performance. |
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIESU.S. GAAP
RECONCILIATION OF NON-GAAP ADJUSTED RESULTS(Amounts in Millions
except Per Share Data)(UNAUDITED) |
| |
Six Months Ended June 30, 2024 |
|
|
As Reported |
|
Amortization of Acquired Intangibles |
|
Restructuring Charges |
|
Net Losses on Sales of Businesses1 |
|
Adjusted Results
(Non-GAAP) |
| Operating Income and
Adjusted EBITA before Restructuring Charges2 |
$502.4 |
|
$(41.1) |
|
$(0.9) |
|
|
|
$544.4 |
| |
|
|
|
|
|
|
|
|
|
|
Total (Expenses) and Other Income3 |
(46.1) |
|
|
|
|
|
$(4.7) |
|
(41.4) |
| Income Before Income
Taxes |
456.3 |
|
(41.1) |
|
(0.9) |
|
(4.7) |
|
503.0 |
|
Provision for Income Taxes |
122.9 |
|
8.4 |
|
0.2 |
|
(1.7) |
|
129.8 |
|
Equity in Net Loss of Unconsolidated Affiliates |
(0.2) |
|
|
|
|
|
|
|
(0.2) |
|
Net Income Attributable to Non-controlling Interests |
(8.3) |
|
|
|
|
|
|
|
(8.3) |
| Net Income Available
to IPG Common Stockholders |
$324.9 |
|
$(32.7) |
|
$(0.7) |
|
$(6.4) |
|
$364.7 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding - Basic |
377.4 |
|
|
|
|
|
|
|
377.4 |
|
Dilutive effect of stock options and restricted shares |
2.3 |
|
|
|
|
|
|
|
2.3 |
| Weighted-Average
Number of Common Shares Outstanding - Diluted |
379.7 |
|
|
|
|
|
|
|
379.7 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Earnings per Share
Available to IPG Common Stockholders4: |
|
|
|
|
|
|
|
|
|
| Basic |
$0.86 |
|
$(0.09) |
|
$(0.00) |
|
$(0.02) |
|
$0.97 |
| Diluted |
$0.86 |
|
$(0.09) |
|
$(0.00) |
|
$(0.02) |
|
$0.96 |
| |
|
|
|
|
|
|
|
|
|
| 1 Primarily
relates to losses on complete dispositions of businesses and the
classification of certain assets as held for sale. |
| 2 Refer to
non-GAAP reconciliation of Adjusted EBITA before Restructuring
Charges on page A5 in the appendix. |
| 3 Consists of
non-operating expenses including interest expense, interest income
and other expense, net. |
| 4 Earnings per
share amounts are calculated on an unrounded basis but rounded for
purposes of presentation. |
| Note: Management
believes the resulting comparisons provide useful supplemental data
that, while not a substitute for GAAP measures, allow for greater
transparency in the review of our financial and operational
performance. |
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP
RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions)
(UNAUDITED) |
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
| Revenue Before
Billable Expenses |
$2,327.1 |
|
$2,328.5 |
|
$4,510.0 |
|
$4,505.4 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Non-GAAP
Reconciliation: |
|
|
|
|
|
|
|
| Net Income Available
to IPG Common Stockholders |
$214.5 |
|
$265.5 |
|
$324.9 |
|
$391.5 |
| |
|
|
|
|
|
|
|
| Add Back: |
|
|
|
|
|
|
|
|
Provision for Income Taxes |
75.6 |
|
10.6 |
|
122.9 |
|
44.4 |
| Subtract: |
|
|
|
|
|
|
|
|
Total (Expenses) and Other Income |
(22.5) |
|
(32.1) |
|
(46.1) |
|
(54.4) |
|
Equity in Net (Loss) Income of Unconsolidated Affiliates |
(0.5) |
|
0.7 |
|
(0.2) |
|
0.6 |
|
Net Income Attributable to Non-controlling Interests |
(5.1) |
|
(3.2) |
|
(8.3) |
|
(9.3) |
| Operating
Income |
318.2 |
|
310.7 |
|
502.4 |
|
499.0 |
| |
|
|
|
|
|
|
|
| Add Back: |
|
|
|
|
|
|
|
|
Amortization of Acquired Intangibles |
20.4 |
|
21.2 |
|
41.1 |
|
42.1 |
| |
|
|
|
|
|
|
|
| Adjusted
EBITA |
$338.6 |
|
$331.9 |
|
$543.5 |
|
$541.1 |
| Adjusted EBITA Margin on
Revenue before Billable Expenses % |
14.6 % |
|
14.3 % |
|
12.1 % |
|
12.0 % |
| |
|
|
|
|
|
|
|
|
Restructuring Charges |
0.3 |
|
(1.7) |
|
0.9 |
|
(0.1) |
| |
|
|
|
|
|
|
|
| Adjusted EBITA before
Restructuring Charges |
$338.9 |
|
$330.2 |
|
$544.4 |
|
$541.0 |
| Adjusted EBITA before
Restructuring Charges Margin on Revenue before Billable Expenses
% |
14.6 % |
|
14.2 % |
|
12.1 % |
|
12.0 % |
| |
|
|
|
|
|
|
|
| Note: Management
believes the resulting comparisons provide useful supplemental data
that, while not a substitute for GAAP measures, allow for greater
transparency in the review of our financial and operational
performance. |
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIESU.S. GAAP
RECONCILIATION OF NON-GAAP ADJUSTED RESULTS(Amounts in Millions
except Per Share Data)(UNAUDITED) |
| |
Three Months Ended June 30, 2023 |
|
|
As Reported |
|
Amortization of Acquired Intangibles |
|
Restructuring Charges |
|
Net Losses on Sales of Businesses1 |
|
Adjusted Results
(Non-GAAP) |
| Operating Income and
Adjusted EBITA before Restructuring Charges2 |
$310.7 |
|
$(21.2) |
|
$1.7 |
|
|
|
$330.2 |
| |
|
|
|
|
|
|
|
|
|
|
Total (Expenses) and Other Income3 |
(32.1) |
|
|
|
|
|
$(4.1) |
|
(28.0) |
| Income Before Income
Taxes |
278.6 |
|
(21.2) |
|
1.7 |
|
(4.1) |
|
302.2 |
|
Provision for Income Taxes |
10.6 |
|
4.2 |
|
(0.4) |
|
0.1 |
|
14.5 |
|
Equity in Net Income of Unconsolidated Affiliates |
0.7 |
|
|
|
|
|
|
|
0.7 |
|
Net Income Attributable to Non-controlling Interests |
(3.2) |
|
|
|
|
|
|
|
(3.2) |
| Net Income Available
to IPG Common Stockholders |
$265.5 |
|
$(17.0) |
|
$1.3 |
|
$(4.0) |
|
$285.2 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding - Basic |
385.7 |
|
|
|
|
|
|
|
385.7 |
|
Dilutive effect of stock options and restricted shares |
2.0 |
|
|
|
|
|
|
|
2.0 |
| Weighted-Average
Number of Common Shares Outstanding - Diluted |
387.7 |
|
|
|
|
|
|
|
387.7 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Earnings per Share
Available to IPG Common Stockholders4,5: |
|
|
|
|
|
|
|
|
|
| Basic |
$0.69 |
|
$(0.04) |
|
$0.00 |
|
$(0.01) |
|
$0.74 |
| Diluted |
$0.68 |
|
$(0.04) |
|
$0.00 |
|
$(0.01) |
|
$0.74 |
| |
|
|
|
|
|
|
|
|
|
| 1 Primarily
relates to losses on complete dispositions of businesses and the
classification of certain assets as held for sale, as well as a
loss related to the sale of an equity investment. |
| 2 Refer to
non-GAAP reconciliation of Adjusted EBITA before Restructuring
Charges on page A5 in the appendix. |
| 3 Consists of
non-operating expenses including interest expense, interest income
and other expense, net. |
| 4 Earnings per
share amounts are calculated on an unrounded basis but rounded for
purposes of presentation. |
| 5 Basic and
diluted earnings per share, both As Reported and Adjusted Results
(Non-GAAP), includes a positive impact of $0.17 related to the
settlement of U.S. Federal Income Tax Audits for the years
2017-2018. |
| Note: Management
believes the resulting comparisons provide useful supplemental data
that, while not a substitute for GAAP measures, allow for greater
transparency in the review of our financial and operational
performance. |
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIESU.S. GAAP
RECONCILIATION OF NON-GAAP ADJUSTED RESULTS(Amounts in Millions
except Per Share Data)(UNAUDITED) |
| |
Six Months Ended June 30, 2023 |
|
|
As Reported |
|
Amortization of Acquired Intangibles |
|
Restructuring Charges |
|
Net Losses on Sales of Businesses1 |
|
Adjusted Results
(Non-GAAP) |
| Operating Income and
Adjusted EBITA before Restructuring Charges2 |
$499.0 |
|
$(42.1) |
|
$0.1 |
|
|
|
$541.0 |
| |
|
|
|
|
|
|
|
|
|
|
Total (Expenses) and Other Income3 |
(54.4) |
|
|
|
|
|
$(8.3) |
|
(46.1) |
| Income Before Income
Taxes |
444.6 |
|
(42.1) |
|
0.1 |
|
(8.3) |
|
494.9 |
|
Provision for Income Taxes |
44.4 |
|
8.4 |
|
(0.1) |
|
1.4 |
|
54.1 |
|
Equity in Net Income of Unconsolidated Affiliates |
0.6 |
|
|
|
|
|
|
|
0.6 |
|
Net Income Attributable to Non-controlling Interests |
(9.3) |
|
|
|
|
|
|
|
(9.3) |
| Net Income Available
to IPG Common Stockholders |
$391.5 |
|
$(33.7) |
|
$0.0 |
|
$(6.9) |
|
$432.1 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-Average
Number of Common Shares Outstanding - Basic |
385.8 |
|
|
|
|
|
|
|
385.8 |
|
Dilutive effect of stock options and restricted shares |
1.8 |
|
|
|
|
|
|
|
1.8 |
| Weighted-Average
Number of Common Shares Outstanding - Diluted |
387.6 |
|
|
|
|
|
|
|
387.6 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Earnings per Share
Available to IPG Common Stockholders4,5: |
|
|
|
|
|
|
|
|
|
| Basic |
$1.01 |
|
$(0.09) |
|
$0.00 |
|
$(0.02) |
|
$1.12 |
| Diluted |
$1.01 |
|
$(0.09) |
|
$0.00 |
|
$(0.02) |
|
$1.11 |
| |
|
|
|
|
|
|
|
|
|
| 1 Primarily
relates to losses on complete dispositions of businesses and the
classification of certain assets as held for sale, as well as a
loss related to the sale of an equity investment. |
| 2 Refer to
non-GAAP reconciliation of Adjusted EBITA before Restructuring
Charges on page A5 in the appendix. |
| 3 Consists of
non-operating expenses including interest expense, interest income
and other expense, net. |
| 4 Earnings per
share amounts are calculated on an unrounded basis but rounded for
purposes of presentation. |
| 5 Basic and
diluted earnings per share, both As Reported and Adjusted Results
(Non-GAAP), includes a positive impact of $0.17 related to the
settlement of U.S. Federal Income Tax Audits for the years
2017-2018. |
| Note: Management
believes the resulting comparisons provide useful supplemental data
that, while not a substitute for GAAP measures, allow for greater
transparency in the review of our financial and operational
performance. |
Interpublic Group of Com... (NYSE:IPG)
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