Omnicom Reports Second Quarter 2012 Results

NEW YORK, July 17, 2012 /PRNewswire/ -- Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the second quarter of 2012 increased 2.8% to $282.7 million from $275.1 million in the second quarter of 2011.  Omnicom's diluted net income per common share in the second quarter of 2012 increased 6.3% to $1.02 per share from $0.96 per share in the second quarter of 2011. 

Worldwide revenue increased 2.1% to $3,561.0 million from $3,487.4 million in the second quarter of 2011.  Domestic revenue for the second quarter of 2012 increased 5.4% to $1,859.6 million compared to $1,764.2 million in the second quarter of 2011.  International revenue decreased 1.3% to $1,701.4 million compared to $1,723.2 million in the second quarter of 2011.

Omnicom's net income for the six months ended June 30, 2012 increased 2.2% to $487.3 million from $477.0 million in the same period in 2011.  Omnicom's diluted net income per common share for the six months ended June 30, 2012 increased 5.5% to $1.74 per share in 2012 from $1.65 per share in the same period in 2011.

Worldwide revenue for the six months ended June 30, 2012 increased 3.5% to $6,868.2 million from $6,638.8 million in the same period in 2011.  Domestic revenue for the six months ended June 30, 2012 increased 4.7% to $3,579.0 million from $3,416.8 million in the same period in 2011.  International revenue for the six months ended June 30, 2012 increased 2.1% to $3,289.2 million from $3,222.0 million in the same period in 2011.

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 second quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

 







Omnicom Group Inc.                                                                                                                    

 

(Unaudited)                                                                                                                           

(Dollars in Millions, Except Per Share Data)






Three Months Ended June 30,                             


2012


2011






Revenue                                                                     

$

3,561.0

$

3,487.4






Operating expenses, excluding amortization of intangibles      


3,030.6


2,976.0






Earnings before interest, taxes and





            amortization of intangibles (a)                                       


530.4


511.4






Amortization of intangibles                                                


24.0


23.3






Operating income                                                                       


506.4


488.1






Net interest expense                                                                  


34.9


27.6






Income before income taxes                                                           


471.5


460.5






Income tax expense                                                                         


161.9


158.1






Income from equity method investments                             


4.6


4.8






Net Income                                                                                  


314.2


307.2






Less: Net income attributed to noncontrolling interests            


31.5


32.1






Net Income  -  Omnicom Group Inc.                                       


282.7


275.1






Less: Net income allocated to participating securities              


6.4


2.9






Net income available for common shares                            

$

276.3

$

272.2











Net income per common share  -  Omnicom Group Inc.





      Basic                                                                                    

$

1.03

$

0.98

      Diluted                                                                             

$

1.02

$

0.96






Weighted average shares (in millions)





      Basic                                                                                    


269.0


278.7

      Diluted                                                                               


271.8


283.7






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)


Six Months Ended June 30,                                 


2012


2011






Revenue                                                                             

$

6,868.2

$

6,638.8






Operating expenses, excluding amortization of intangibles   


5,951.4


5,784.6






Earnings before interest, taxes and





            amortization of intangibles (a)                                          


916.8


854.2






Amortization of intangibles                                                


47.9


43.9






Operating income                                                                           


868.9


810.3






Net interest expense                                                           


64.0


59.9






Income before income taxes                                                         


804.9


750.4






Income tax expense                                                                         


271.2


231.9






Income from equity method investments                              


6.5


5.9






Net Income                                                                                  


540.2


524.4






Less: Net income attributed to noncontrolling interests           


52.9


47.4






Net Income  -  Omnicom Group Inc.                                           


487.3


477.0






Less: Net income allocated to participating securities               


10.9


4.9






Net income available for common shares                                

$

476.4

$

472.1











Net income per common share  -  Omnicom Group Inc.





      Basic                                                                                  

$

1.76

$

1.68

      Diluted                                                                              

$

1.74

$

1.65






Weighted average shares (in millions)





      Basic                                                                          


271.2


281.2

      Diluted                                                                         


273.9


286.1






Dividend declared per common share                                    

$

0.60

$

0.50






(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.



 

SOURCE Omnicom Group Inc.



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