EX-99.1 2 e50319ex99-1.htm EARNINGS RELEASE

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

Contact:Randall Weisenburger
212-415-3393

Omnicom Reports Third Quarter 2012 Results

 

NEW YORK, OCTOBER 16, 2012 - Omnicom Group Inc. (NYSE-OMC) today announced that its diluted net income per common share in the third quarter of 2012 increased 2.8% to $0.74 per share from $0.72 per share in the third quarter of 2011. Omnicom’s net income for the third quarter of 2012 increased slightly to $203.9 million from $203.7 million in the third quarter of 2011.

 

Worldwide revenue increased 0.8% to $3,406.6 million from $3,380.9 million in the third quarter of 2011. Domestic revenue for the third quarter of 2012 increased 3.2% to $1,758.1 million compared to $1,703.2 million in the third quarter of 2011. International revenue decreased 1.7% to $1,648.5 million compared to $1,677.7 million in the third quarter of 2011.

 

Omnicom’s diluted net income per common share for the nine months ended September 30, 2012 increased 5.1% to $2.49 per share in 2012 from $2.37 per share in the same period in 2011. Omnicom’s net income for the nine months ended September 30, 2012 increased 1.5% to $691.2 million from $680.7 million in the same period in 2011.

 

Worldwide revenue for the nine months ended September 30, 2012 increased 2.5% to $10,274.8 million from $10,019.6 million in the same period in 2011. Domestic revenue for the nine months ended September 30, 2012 increased 4.2% to $5,337.0 million from $5,120.0 million in the same period in 2011. International revenue for the nine months ended September 30, 2012 increased 0.8% to $4,937.8 million from $4,899.6 million in the same period in 2011.

 

437 Madison Avenue, New York, NY 10022 (212) 415-3600 Fax (212) 415-3530

 
 

Omnicom Group Inc.

Omnicom Group Inc. (NYSE-OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

 

For a live webcast and/or a replay of our third quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

 
 

Omnicom Group Inc.

(Unaudited)

(Dollars in Millions, Except Per Share Data)

Three Months Ended September 30, 2012 2011
Revenue $ 3,406.6   $ 3,380.9
Operating expenses, excluding amortization of intangibles   2,992.0     2,983.8
Earnings before interest, taxes and          
amortization of intangibles (a)   414.6     397.1
Amortization of intangibles   27.3     23.7
Operating income   387.3     373.4
Net interest expense   40.3     31.9
Income before income taxes   347.0     341.5
Income tax expense   118.7     117.1
Income from equity method investments   5.3     4.5
Net Income   233.6     228.9
Less: Net income attributed to noncontrolling interests   29.7     25.2
Net Income - Omnicom Group Inc.   203.9     203.7
Less: Net income allocated to participating securities   4.5     2.3
Net income available for common shares $ 199.4   $ 201.4
Net income per common share - Omnicom Group Inc.          
Basic $ 0.75   $ 0.73
Diluted $ 0.74   $ 0.72
Weighted average shares (in millions)          
Basic   266.6     277.1
Diluted   268.5     281.4
Dividend declared per common share $ 0.30   $ 0.25

(a)Earnings before interest, taxes and amortization of intangibles (“EBITA”) is a Non-GAAP measure. We use EBITA as an additional operating performance measure, which excludes the non-cash amortization expense of acquired intangible assets. We believe that EBITA is a useful measure to evaluate the performance of our businesses. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.
 
 

Omnicom Group Inc.

(Unaudited)

(Dollars in Millions, Except Per Share Data)

Nine Months Ended September 30,   2012     2011
Revenue $ 10,274.8   $ 10,019.6
Operating expenses, excluding amortization of intangibles   8,943.4     8,768.2
Earnings before interest, taxes and          
amortization of intangibles (a)   1,331.4     1,251.4
Amortization of intangibles   75.2     67.7
Operating income   1,256.2     1,183.7
Net interest expense   104.3     91.8
Income before income taxes   1,151.9     1,091.9
Income tax expense   389.9     349.0
Income from equity method investments   11.9     10.3
Net Income   773.9     753.2
Less: Net income attributed to noncontrolling interests   82.7     72.5
Net Income - Omnicom Group Inc.   691.2     680.7
Less: Net income allocated to participating securities   15.4     7.3
Net income available for common shares $ 675.8   $ 673.4
 
Net income per common share - Omnicom Group Inc.          
Basic $ 2.51   $ 2.41
Diluted $ 2.49   $ 2.37
Weighted average shares (in millions)          
Basic   269.6     279.8
Diluted   271.5     284.3
Dividend declared per common share $ 0.90   $ 0.75

(a)Earnings before interest, taxes and amortization of intangibles ("EBITA") is a Non-GAAP measure. We use EBITA as an additional operating performance measure, which excludes the non-cash amortization expense of acquired intangible assets. We believe that EBITA is a useful measure to evaluate the performance of our businesses. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.