OMNICOM GROUP., INC. NEW YORK, Oct. 20, 2015 /PRNewswire/ -- Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share for the third quarter increased two cents, or 2.1%, to $0.97 per share versus $0.95 per share for the third quarter of 2014.
Omnicom's worldwide revenue in the third quarter of 2015 decreased 1.1% to $3,706.6 million from $3,749.6 million in the third quarter of 2014. The components of the change in revenue included an increase in revenue from organic growth of 6.1%, a marginal increase in revenue from acquisitions, net of dispositions and a decrease in revenue from the negative impact of foreign exchange rates of 7.2% when compared to the third quarter of 2014.
Across our regional markets, organic revenue in the third quarter of 2015 increased 6.3% in North America, 9.1% in the United Kingdom, 4.5% in the Euro Markets and Other Europe, 8.6% in Asia Pacific and 0.4% in Africa/Middle East, while organic revenue decreased 6.9% in Latin America when compared to the same quarter of 2014.
The change in organic revenue in the third quarter of 2015 as compared to the third quarter of 2014 in our four fundamental disciplines was as follows: advertising increased 9.9%, CRM increased 2.8% and specialty communications increased 5.4%, while public relations decreased 1.5%.
For the third quarter of 2015, Omnicom's earnings before interest, taxes and amortization of intangibles ("EBITA"), a non-GAAP financial measure, decreased $5.8 million, or 1.3%, to $454.7 million from $460.5 million in the third quarter of 2014. Our EBITA margin of 12.3% for the third quarter of 2015 was unchanged when compared to the third quarter of 2014.
Operating income in the third quarter of 2015 decreased $5.3 million, or 1.2%, to $428.3 million from $433.6 million in the third quarter of 2014. Our operating margin of 11.6% for the third quarter of 2015 was unchanged when compared to the third quarter of 2014.
For the third quarter of 2015, our income tax rate was 32.8% compared to 33.4% in the third quarter of 2014.
Net income for the third quarter of 2015 decreased $4.5 million, or 1.8%, to $239.3 million from $243.8 million in the third quarter of 2014.
Year-to-date
Diluted net income per common share for the first nine months of 2015 increased 11 cents, or 3.7%, to $3.06 per share compared to $2.95 per share for the first nine months of 2014.
Worldwide revenue for the nine months ended September 30, 2015 decreased 1.3% to $10,981.1 million from $11,122.7 million in the same period in 2014. The components of the change in revenue included an increase in revenue from organic growth of 5.5%, an increase in revenue from acquisitions, net of dispositions of 0.2% and a decrease in revenue from the negative impact of foreign exchange rates of 7.0% when compared to the first nine months of 2014.
Across our regional markets for the nine months ended September 30, 2015, organic revenue increased 5.7% in North America, 7.9% in the United Kingdom, 3.7% in the Euro Markets and Other Europe, 7.7% in Asia Pacific and 7.5% in Africa/Middle East, while organic revenue decreased 4.8% in Latin America when compared to the same period of 2014.
The change in organic revenue in the first nine months of 2015 compared to the same period in 2014 in our four fundamental disciplines was as follows: advertising increased 8.0%, CRM increased 3.2%, public relations increased 0.6% and specialty communications increased 5.4%.
Omnicom's EBITA for the nine months ended September 30, 2015 decreased 1.1%, or $16.4 million, to $1,425.4 million from $1,441.8 million for the same period in 2014. Our EBITA margin for the first nine months of 2015 of 13.0% was unchanged when compared to the same period of 2014.
Operating income for the nine months ended September 30, 2015 decreased $20.1 million, or 1.5%, to $1,344.6 million compared to $1,364.7 million for the same period in 2014. Our operating margin for the first nine months of 2015 decreased to 12.2% versus 12.3% for the first nine months of 2014.
For the nine months ended September 30, 2015, our income tax rate was 32.8% compared to 32.6% for the same period in 2014.
Net income for the nine months ended September 30, 2015 decreased $12.2 million, or 1.6%, to $762.3 million from $774.5 million versus the same period in 2014.
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. Follow us on Twitter for the latest news.
For a live webcast or a replay of our third quarter earnings conference call, go to http://investor.omnicomgroup.com/investor-relations/news-events-and-filings.
Omnicom Group Inc.
Consolidated Statements of Income
Three Months Ended September 30
(Unaudited)
(Dollars in Millions, Except Per Share Data)
2015 2014
---- ----
Revenue $3,706.6 $3,749.6
Operating Expenses, excluding amortization
of intangibles 3,251.9 3,289.1
------- -------
EBITA (a) 454.7 460.5
Less: Amortization of Intangibles 26.4 26.9
---- ----
Operating Income 428.3 433.6
Net Interest Expense 35.9 31.4
---- ----
Income before income taxes 392.4 402.2
Income tax expense 128.9 134.4
Income from equity method investments 3.2 5.8
--- ---
Net income 266.7 273.6
Less: Net income allocated to
noncontrolling interests 27.4 29.8
---- ----
Net income - Omnicom Group Inc. 239.3 243.8
Less: Net income allocated to
participating securities 2.5 4.3
--- ---
Net income available for common shares $236.8 $239.5
====== ======
Net income per common share - Omnicom
Group Inc.
Basic $0.97 $0.95
Diluted $0.97 $0.95
Weighted average shares (in millions)
Basic 243.2 251.4
Diluted 244.4 252.4
Dividend declared per common share $0.50 $0.50
(a) EBITA (defined as Earnings
before interest, taxes and
amortization of intangibles) 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.
Consolidated Statements of Income
Nine Months Ended September 30
(Unaudited)
(Dollars in Millions, Except Per Share Data)
2015 2014
---- ----
Revenue $10,981.1 $11,122.7
Operating Expenses, excluding amortization
of intangibles 9,555.7 9,680.9
------- -------
EBITA (b) 1,425.4 1,441.8
Less: Amortization of Intangibles 80.8 77.1
---- ----
Operating Income 1,344.6 1,364.7
Net Interest Expense 104.7 104.1
----- -----
Income before income taxes 1,239.9 1,260.6
Income tax expense 406.9 410.9 (a)
Income from equity method investments 6.2 10.4
--- ----
Net income 839.2 860.1
Less: Net income allocated to
noncontrolling interests 76.9 85.6
---- ----
Net income - Omnicom Group Inc. 762.3 774.5 (a)
Less: Net income allocated to
participating securities 9.0 14.7
--- ----
Net income available for common shares $753.3 $759.8
====== ======
Net income per common share - Omnicom
Group Inc.
Basic $3.08 $2.97
Diluted $3.06 $2.95 (a)
Weighted average shares (in millions)
Basic 244.7 255.6
Diluted 245.8 257.3
Dividend declared per common share $1.50 $1.40
(a) Year-to-date 2014 results
reflect the recognition of an
income tax benefit of
approximately $11 million related
to expenses incurred in prior
periods in connection with the
proposed merger with Publicis,
which was terminated on May 8,
2014. Prior to the termination
of the merger, the majority of
the merger costs, which were
incurred in 2013, were
capitalized for income tax
purposes and the related tax
benefits were not recorded.
Because the merger was
terminated, the merger costs were
no longer required to be
capitalized for income tax
purposes. Excluding the income
tax benefit related to the
proposed merger from the first
nine months of 2014, net income
was $763.3 million and diluted
net income per common share was
$2.91 per share.
(b) EBITA (defined as Earnings before
interest, taxes and amortization
of intangibles) 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.
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SOURCE Omnicom Group, Inc.
