Revenue of $3.6
billion, with organic growth of 4.0%
Diluted earnings per share of $1.59; $1.67
Non-GAAP adjusted
Operating income of $478.9 million and 13.2% margin
EBITA of $500.4
million and 13.8% margin
NEW
YORK, April 16,
2024 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced
results for the quarter ended March 31, 2024.
"Omnicom began the year with solid organic revenue growth of
4.0%, led by continued strength in our advertising & media and
precision marketing disciplines, including Flywheel Digital," said
John Wren, Chairman and Chief
Executive Officer of Omnicom. "We are uniquely able to combine
marketing and sales solutions with a seamless set of information
signals to turn our award-winning creativity into measurable
dynamic business outcomes for our clients. Our
industry-leading tools and platforms, combined with the strength of
our operating leadership, has led to our excellent new business
performance and, when combined with the new opportunities we are
pursuing, give us great confidence in the future."
First Quarter 2024
Results
|
|
Three Months Ended
March 31,
|
$ in millions,
except per share amounts
|
2024
|
|
|
2023
|
|
Revenue
|
$ 3,630.5
|
|
|
$ 3,443.3
|
|
Operating
Income
|
478.9
|
|
|
346.5
|
|
Operating Income
Margin
|
13.2 %
|
|
|
10.1 %
|
|
Net
Income1
|
318.6
|
|
|
227.5
|
|
Net Income per Share -
Diluted1
|
$ 1.59
|
|
|
$ 1.11
|
|
Non-GAAP
Measures2:
|
|
|
|
|
|
EBITA3
|
500.4
|
|
|
361.3
|
|
EBITA
Margin3
|
13.8 %
|
|
|
10.5 %
|
|
Adjusted
EBITA4
|
|
|
|
480.5
|
|
Adjusted EBITA
Margin4
|
|
|
|
14.0 %
|
|
After-tax amortization
per diluted share5
|
$ 0.08
|
|
|
$ 0.05
|
|
Non-GAAP Adjusted Net
Income per Share - Diluted3,4,5
|
$ 1.67
|
|
|
$ 1.61
|
|
|
|
|
|
|
|
Notes: 1) Net Income
and Net Income per Share for Omnicom Group Inc. 2) See non-GAAP
reconciliations starting on page 8. 3) Beginning with
the three months ended March 31, 2024, EBITA is defined as
operating income before amortization of acquired intangible assets
and internally developed strategic platform assets. As a result, we
reclassified the prior year to be consistent with the revised
definition, which reduced EBITA from previously reported amounts.
4) For the three months ended March 31, 2023, operating
expenses include $119.2 million ($91.0 million after-tax, $0.45 per
diluted share) related to real estate repositioning costs. 5)
Beginning with the three months ended March 31, 2024, Adjusted
Net Income per Share - Diluted excludes after-tax amortization of
acquired intangible assets and internally developed strategic
platform assets.
|
Revenue
Reported revenue in the first quarter of 2024
increased $187.2 million, or 5.4%, to
$3,630.5 million. Worldwide revenue
growth in the first quarter of 2024 compared to the first quarter
of 2023 was led by an increase in organic growth of $136.9 million, or 4.0%. Acquisition revenue, net
of disposition revenue, increased revenue by $53.0 million, or 1.5%, primarily due to the
Flywheel Digital acquisition in the Precision Marketing discipline.
The impact of foreign currency translation reduced revenue by
$2.7 million, or 0.1%.
Organic growth by discipline in the first quarter of 2024
compared to the first quarter of 2023 was as follows: 7.0% for
Advertising & Media, 4.3% for Precision Marketing, 9.5% for
Experiential, and 2.1% for Healthcare, partially offset by declines
of 4.3% for Execution & Support, 3.8% for Branding & Retail
Commerce, and 1.1% for Public Relations.
Organic growth by region in the first quarter of 2024 compared
to the first quarter of 2023 was as follows: 4.3% for the United States, 3.5% for Euro Markets &
Other Europe, 22.3% for Latin
America, 3.0% for Asia
Pacific, 3.2% for the United
Kingdom, and 1.1% for Other North America, partially offset
by a decline of 4.2% for the Middle
East & Africa.
Expenses
Operating expenses increased $54.8 million, or 1.8%, to $3,151.6 million in the first quarter of 2024
compared to the first quarter of 2023.
Salary and service costs increased $149.7
million, or 5.9%, to $2,692.6
million. These costs tend to fluctuate with changes in
revenue and are comprised of salary and related costs, which
include employee compensation and benefits costs, freelance labor,
third-party service costs, and third-party incidental costs. Salary
and related costs increased $69.3
million, or 3.9%, to $1,847.3
million, primarily due to an increase in headcount primarily
as a result of our acquisition of Flywheel Digital. Third-party
service costs include third-party supplier costs when we act as
principal in providing services to our clients. Third-party
incidental costs that are required to be included in revenue
primarily consist of client-related travel and incidental
out-of-pocket costs, which are billed back to the client directly
at our cost. Third-party service costs increased $58.9 million, or 9.2%, to $698.2 million, and third-party incidental costs
increased $21.5 million, or 17.1%, to
$147.1 million, both primarily as a
result of organic growth.
Occupancy and other costs, which are less directly linked to
changes in revenue than salary and service costs, increased
$22.5 million, or 7.7%, to
$314.1 million. The increase is
primarily related to our acquisition activity in the period.
Increased occupancy costs were partially offset by lower rent
expense.
SG&A expenses decreased $3.9
million, or 4.4%, to $85.3
million, primarily due to a decrease in administrative
costs.
Operating Income
Operating income increased
$132.4 million, or 38.2%, to
$478.9 million in the first quarter
of 2024 compared to the first quarter of 2023, and the related
margin increased to 13.2% from 10.1%. In the three months ended
March 31, 2023, the effect of real estate repositioning costs
reduced operating income by $119.2
million and decreased operating margin by 3.4%.
Interest Expense, net
Interest expense was flat,
offset by a decrease in interest income of $8.6 million due primarily to lower average cash
and short-term investment balances.
Income Taxes
Our effective tax rate for the three
months ended March 31, 2024 increased period-over-period to
25.7% from 25.5%. The effective tax rate for 2024 includes the
favorable impact from the resolution of certain tax positions of
$7.5 million. The effective tax
rate for the three months ended March 31, 2023 includes the
favorable impact of approximately $10.0
million of previously unrecognized tax benefits, partially
offset by approximately $6.0 million
related to a lower tax benefit in certain jurisdictions for the
real estate repositioning costs in the quarter, and an increase in
the U.K. statutory tax rate.
Net Income – Omnicom Group Inc. and Diluted Net Income per
Share
Net income - Omnicom Group Inc. for the first quarter
of 2024 increased $91.1 million, or
40.0%, to $318.6 million compared to
the first quarter of 2023. Diluted shares outstanding for the first
quarter of 2024 decreased 2.2% to 200.1 million from 204.5 million
as a result of net share repurchases. Diluted net income per share
of $1.59 increased $0.48, or 43.2%, from $1.11. The first quarter 2023 included
$119.2 million ($91.0 million after-tax, $0.45 per diluted share) related to real estate
repositioning costs.
Beginning with the three months ended March 31, 2024,
Non-GAAP Adjusted Net Income per Share - Diluted excludes the
effect of after-tax amortization of acquired intangible assets and
internally developed strategic platform assets. For the three
months ended March 31, 2024, Non-GAAP Adjusted Net Income per
Share - Diluted of $1.67 increased
$0.06 or 3.7%, from Non-GAAP Adjusted
Net Income per Share - Diluted of $1.61 in the first quarter of 2023. We present
Non-GAAP Adjusted Net Income per Share - Diluted to allow for
comparability with the prior year period.
EBITA
Adjusted EBITA increased $19.9 million, or 4.1%, to $500.4 million in the first quarter of 2024
compared to the first quarter of 2023, and the related margin
decreased to 13.8% from 14.0%.
Risks and Uncertainties
Current global economic
challenges, including geopolitical events, international
hostilities, acts of terrorism, public health crises, high and
sustained inflation in countries that comprise our major markets,
high interest rates, and labor and supply chain issues could cause
economic uncertainty and volatility. The impact of these issues on
our business will vary by geographic market and discipline. We
monitor economic conditions closely, as well as client revenue
levels and other factors. In response to reductions in revenue, we
can take actions to align our cost structure with changes in client
demand and manage our working capital. However, there can be no
assurance as to the effectiveness of our efforts to mitigate any
impact of the current and future adverse economic conditions,
reductions in client revenue, changes in client creditworthiness,
and other developments.
Definitions - Components of Revenue Change
We use
certain terms in describing the components of the change in revenue
above.
Foreign exchange rate impact: calculated by translating
the current period's local currency revenue using the prior period
average exchange rates to derive current period constant currency
revenue. The foreign exchange rate impact is the difference between
the current period revenue in U.S. Dollars and the current period
constant currency revenue.
Acquisition revenue, net of disposition revenue:
Acquisition revenue is calculated as if the acquisition occurred
twelve months prior to the acquisition date by aggregating the
comparable prior period revenue of acquisitions through the
acquisition date. As a result, acquisition revenue excludes the
positive or negative difference between our current period revenue
subsequent to the acquisition date, and the comparable prior period
revenue and the positive or negative growth after the acquisition
date is attributed to organic growth. Disposition revenue is
calculated as if the disposition occurred twelve months prior to
the disposition date by aggregating the comparable prior period
revenue of disposals through such date. The acquisition revenue and
disposition revenue amounts are netted in the description
above.
Organic growth: calculated by subtracting the foreign
exchange rate impact component and the acquisition revenue, net of
disposition revenue component from total revenue growth.
Conference Call
Omnicom will host a conference call to
review its financial results on Tuesday,
April 16, 2024, starting at 4:30 p.m.
Eastern Time. A live webcast of the call, along with
the related slide presentation, will be available at Omnicom's
investor relations website, investor.omnicomgroup.com, and a
webcast replay will be made available after the call concludes.
Corporate Responsibility
At Omnicom, we are committed
to promoting responsible practices and making positive
contributions to society around the globe. Please explore our
website (omnicomgroup.com/corporate-responsibility) for highlights
of our progress across the areas on which we focus: Empower People,
Protect Our Planet, Lead Responsibly.
About Omnicom
Omnicom (NYSE: OMC) is a leading
provider of data-inspired, creative marketing and sales solutions.
Omnicom's iconic agency brands are home to the industry's most
innovative communications specialists who are focused on driving
intelligent business outcomes for their clients. The company offers
a wide range of services in advertising, strategic media planning
and buying, precision marketing, retail and digital commerce,
branding, experiential, public relations, healthcare marketing and
other specialty marketing services to over 5,000 clients in more
than 70 countries. For more information, visit
www.omnicomgroup.com.
Non-GAAP Financial Measures
We present financial
measures determined in accordance with generally accepted
accounting principles in the United
States ("GAAP") and adjustments to the GAAP presentation
("Non-GAAP"), which we believe are meaningful for understanding our
performance. We believe these measures are useful in evaluating the
impact of certain items on operating performance and allows for
comparability between reporting periods. EBITA is defined as
operating income before interest, taxes, and amortization of
acquired intangible assets and internally developed strategic
platform assets, and EBITA margin is defined as EBITA divided by
revenue. We use EBITA and EBITA margin as additional operating
performance measures, which exclude the non-cash amortization
expense of acquired intangible assets and internally developed
strategic platform assets. We also use Adjusted Operating Income,
Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA
Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom
Group Inc. and Adjusted Net Income per diluted share – Omnicom
Group Inc. as additional operating performance measures. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information presented in accordance
with GAAP. Non-GAAP financial measures as reported by us may not be
comparable to similarly titled amounts reported by other
companies.
Forward-Looking Statements
Certain statements in this
document contain forward-looking statements, including statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. In addition, from time to time, the Company or its
representatives have made, or may make, forward-looking statements,
orally or in writing. These statements may discuss goals,
intentions and expectations as to future plans, trends, events,
results of operations or financial position, or otherwise, based on
current beliefs of the Company's management as well as assumptions
made by, and information currently available to, the Company's
management. Forward-looking statements may be accompanied by words
such as "aim," "anticipate," "believe," "plan," "could," "should,"
"would," "estimate," "expect," "forecast," "future," "guidance,"
"intend," "may," "will," "possible," "potential," "predict,"
"project" or similar words, phrases or expressions. These
forward-looking statements are subject to various risks and
uncertainties, many of which are outside the Company's control.
Therefore, you should not place undue reliance on such statements.
Factors that could cause actual results to differ materially from
those in the forward-looking statements include: adverse economic
conditions, including those caused by geopolitical events,
international hostilities, acts of terrorism, public health crises,
high and sustained inflation in countries that comprise our major
markets, high interest rates, and labor and supply chain issues
affecting the distribution of our clients' products; international,
national, or local economic conditions that could adversely affect
the Company or its clients; losses on media purchases and
production costs incurred on behalf of clients; reductions in
client spending, a slowdown in client payments, and a deterioration
or disruption in the credit markets; the ability to attract new
clients and retain existing clients in the manner anticipated;
changes in client advertising, marketing, and corporate
communications requirements; failure to manage potential conflicts
of interest between or among clients; unanticipated changes related
to competitive factors in the advertising, marketing, and corporate
communications industries; unanticipated changes to, or the ability
to hire and retain key personnel; currency exchange rate
fluctuations; reliance on information technology systems and risks
related to cybersecurity incidents; effective management of the
risks, challenges and efficiencies presented by utilizing
Artificial Intelligence (AI) technologies and related partnerships
in our business; changes in legislation or governmental regulations
affecting the Company or its clients; risks associated with
assumptions the Company makes in connection with acquisitions, its
critical accounting estimates and legal proceedings; the Company's
international operations, which are subject to the risks of
currency repatriation restrictions, social or political conditions,
and an evolving regulatory environment in high-growth markets and
developing countries; and risks related to our environmental,
social, and governance goals and initiatives, including impacts
from regulators and other stakeholders, and the impact of factors
outside of our control on such goals and initiatives. The foregoing
list of factors is not exhaustive. You should carefully consider
the foregoing factors and the other risks and uncertainties that
may affect the Company's business, including those described in
Item 1A, "Risk Factors" and Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
Annual Report on Form 10-K for the year ended December 31, 2023 and in other documents filed
from time to time with the Securities and Exchange Commission.
Except as required under applicable law, the Company does not
assume any obligation to update these forward-looking
statements.
OMNICOM GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(In millions, except
per share amounts)
|
|
|
Three Months Ended
March
31,
|
|
2024
|
|
2023
|
Revenue
|
$
3,630.5
|
|
$
3,443.3
|
Operating
Expenses:
|
|
|
|
Salary and service
costs
|
2,692.6
|
|
2,542.9
|
Occupancy and other
costs
|
314.1
|
|
291.6
|
Real estate
repositioning costs1
|
—
|
|
119.2
|
Cost of
services
|
3,006.7
|
|
2,953.7
|
Selling, general and
administrative expenses1
|
85.3
|
|
89.2
|
Depreciation and
amortization
|
59.6
|
|
53.9
|
Total operating
expenses1
|
3,151.6
|
|
3,096.8
|
Operating
Income
|
478.9
|
|
346.5
|
Interest
Expense
|
53.8
|
|
54.9
|
Interest
Income
|
27.0
|
|
35.6
|
Income Before Income
Taxes and Income From Equity Method Investments
|
452.1
|
|
327.2
|
Income Tax
Expense1
|
116.0
|
|
83.4
|
Income From Equity
Method Investments
|
0.9
|
|
0.1
|
Net
Income1
|
337.0
|
|
243.9
|
Net Income Attributed
To Noncontrolling Interests
|
18.4
|
|
16.4
|
Net Income - Omnicom
Group Inc.1
|
$
318.6
|
|
$
227.5
|
Net Income Per Share -
Omnicom Group Inc.:
|
|
|
|
Basic
|
$
1.61
|
|
$
1.13
|
Diluted1
|
$
1.59
|
|
$
1.11
|
|
|
|
|
Dividends Declared Per
Common Share
|
$
0.70
|
|
$
0.70
|
|
|
|
|
|
|
|
|
Operating income margin
%
|
13.2 %
|
|
10.1 %
|
|
|
|
|
Non-GAAP
Measures4:
|
|
|
|
EBITA2
|
$
500.4
|
|
$
361.3
|
EBITA
Margin2
|
13.8 %
|
|
10.5 %
|
EBITA -
Adjusted1,2
|
$
500.4
|
|
$
480.5
|
EBITA Margin %-
Adjusted1,2
|
13.8 %
|
|
14.0 %
|
Non-GAAP Adjusted Net
Income Per Share - Omnicom Group Inc. -
Diluted1,2,3
|
$
1.67
|
|
$
1.61
|
|
|
1)
|
For the three months
ended March 31, 2023, operating expenses include $119.2 million
($91.0 million after-tax) related to real estate repositioning
costs, which decreased diluted net income per share - Omnicom Group
Inc. by $0.45.
|
2)
|
Beginning with the
three months ended March 31, 2024, EBITA is defined as
operating income before amortization of acquired intangible assets
and internally developed strategic platform assets. As a result, we
reclassified the prior year to be consistent with the revised
definition, which reduced EBITA from previously reported amounts.
We believe these measures are useful in evaluating the impact of
these items on operating performance and allows for comparability
between reporting periods.
|
3)
|
Beginning with the
three months ended March 31, 2024, Adjusted Net Income per
Share - Diluted excludes after-tax amortization of acquired
intangible assets and internally developed strategic platform
assets. We believe these measures are useful in evaluating the
impact of these items on operating performance and allows for
comparability between reporting periods.
|
4)
|
See Non-GAAP
reconciliation on page 8.
|
OMNICOM GROUP INC.
AND SUBSIDIARIES
DETAIL OF OPERATING
EXPENSES
(Unaudited)
(In
millions)
|
|
|
Three Months Ended
March
31,
|
|
2024
|
|
2023
|
Revenue
|
$
3,630.5
|
|
$
3,443.3
|
Operating
Expenses:
|
|
|
|
Salary and service
costs:
|
|
|
|
Salary and related
costs
|
1,847.3
|
|
1,778.0
|
Third-party service
costs1
|
698.2
|
|
639.3
|
Third-party incidental
costs2
|
147.1
|
|
125.6
|
Total salary and
service costs
|
2,692.6
|
|
2,542.9
|
Occupancy and other
costs
|
314.1
|
|
291.6
|
Real estate
repositioning costs3
|
—
|
|
119.2
|
Cost of services
|
3,006.7
|
|
2,953.7
|
Selling, general and
administrative expenses
|
85.3
|
|
89.2
|
Depreciation and
amortization
|
59.6
|
|
53.9
|
Total operating
expenses
|
3,151.6
|
|
3,096.8
|
Operating
Income
|
$
478.9
|
|
$
346.5
|
|
|
1)
|
Third-party service
costs include third-party supplier costs when we act as principal
in providing services to our clients.
|
2)
|
Third-party incidental
costs primarily consist of client-related travel and incidental
out-of-pocket costs which we bill back to the client directly at
our cost and which we are required to include in
revenue.
|
3)
|
For the three months
ended March 31, 2023, operating expenses include $119.2
million ($91.0 million after-tax) related to real estate
repositioning costs, which decreased diluted net income per
share - Omnicom Group Inc. by $0.45.
|
OMNICOM GROUP INC.
AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In
millions)
|
|
|
Three Months Ended
March
31,
|
|
2024
|
|
2023
|
Net Income -
Omnicom Group Inc.
|
$
318.6
|
|
$
227.5
|
Net Income Attributed
To Noncontrolling Interests
|
18.4
|
|
16.4
|
Net
Income
|
337.0
|
|
243.9
|
Income From Equity
Method Investments
|
0.9
|
|
0.1
|
Income Tax
Expense
|
116.0
|
|
83.4
|
Income Before Income
Taxes and Income From Equity Method Investments
|
452.1
|
|
327.2
|
Interest
Expense
|
53.8
|
|
54.9
|
Interest
Income
|
27.0
|
|
35.6
|
Operating
Income
|
478.9
|
|
346.5
|
Add back: amortization
of acquired intangible assets and internally developed strategic
platform assets1
|
21.5
|
|
14.8
|
Earnings before
interest, taxes and amortization of intangible assets
("EBITA")1
|
$
500.4
|
|
$
361.3
|
|
|
|
|
Amortization of other
purchased and internally developed software
|
4.3
|
|
4.5
|
Depreciation
|
33.8
|
|
34.6
|
EBITDA
|
$
538.5
|
|
$
400.4
|
|
|
|
|
EBITA
|
$
500.4
|
|
$
361.3
|
Real estate
repositioning costs2
|
—
|
|
119.2
|
EBITA -
Adjusted1,2,3
|
$
500.4
|
|
$
480.5
|
|
|
|
|
Revenue
|
$
3,630.5
|
|
$
3,443.3
|
|
|
|
|
Non-GAAP
Measures:
|
|
|
|
EBITA1
|
$
500.4
|
|
$
361.3
|
EBITA Margin
%1
|
13.8 %
|
|
10.5 %
|
EBITA -
Adjusted1,2,3
|
$
500.4
|
|
$
480.5
|
EBITA Margin % -
Adjusted1
|
13.8 %
|
|
14.0 %
|
|
|
1)
|
Beginning with the
three months ended March 31, 2024, EBITA is defined as operating
income before amortization of acquired intangible assets and
internally developed strategic platform assets. As a result, we
reclassified the prior year to be consistent with the revised
definition, which reduced EBITA from previously reported
amounts.
|
2)
|
For the three months
ended March 31, 2023, operating expenses include $119.2
million ($91.0 million after-tax) related to real estate
repositioning costs, which decreased diluted net income per
share - Omnicom Group Inc. by $0.45.
|
3)
|
The above table
reconciles the U.S. GAAP financial measure of Net Income - Omnicom
Group Inc. to EBITDA and EBITA. We use EBITA and EBITA margin as
additional operating performance measures, which exclude the
non-cash amortization expense of acquired intangible assets and
internally developed strategic platform assets. The above table
also presents Non-GAAP adjustments to EBITA to present EBITA -
Adjusted for the periods presented. Accordingly, we believe EBITA,
EBITA Margin, Adjusted EBITA, and Adjusted EBITA Margin are useful
measures for investors to evaluate the comparability of the
performance of our business year to year.
|
OMNICOM GROUP INC.
AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In
millions)
|
|
|
Three Months Ended March
31,
|
|
Reported
2024
|
|
Non-GAAP
Adj.
|
|
Non-GAAP
2024 Adj.
|
|
|
Reported
2023
|
|
Non-GAAP
Adj. (1)
|
|
Non-GAAP
2023 Adj.
|
Revenue
|
$ 3,630.5
|
|
$
—
|
|
$ 3,630.5
|
|
|
$ 3,443.3
|
|
$
—
|
|
$ 3,443.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses1
|
3,151.6
|
|
—
|
|
3,151.6
|
|
|
3,096.8
|
|
(119.2)
|
|
2,977.6
|
Operating
Income
|
478.9
|
|
—
|
|
478.9
|
|
|
346.5
|
|
119.2
|
|
465.7
|
Operating Income Margin
%
|
13.2 %
|
|
|
|
13.2 %
|
|
|
10.1 %
|
|
|
|
13.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back: amortization
of acquired intangible assets and internally
developed strategic platform assets3
|
21.5
|
|
—
|
|
21.5
|
|
|
14.8
|
|
—
|
|
14.8
|
EBITA2
|
$
500.4
|
|
$
—
|
|
$
500.4
|
|
|
$
361.3
|
|
$
119.2
|
|
$
480.5
|
EBITA Margin
%
|
13.8 %
|
|
|
|
13.8 %
|
|
|
10.5 %
|
|
|
|
14.0 %
|
|
Three Months Ended March
31,
|
|
2024
|
|
2023
|
|
Net
Income
|
Net Income
per Share- Diluted
|
|
Net
Income
|
Net Income
per Share- Diluted
|
Net Income - Omnicom
Group Inc. - Reported
|
$
318.6
|
$
1.59
|
|
$
227.5
|
$
1.11
|
Real estate
repositioning costs1
|
—
|
—
|
|
91.0
|
0.45
|
Amortization of
acquired intangible assets and internally developed strategic
platform assets (after-tax)2
|
15.9
|
0.08
|
|
11.0
|
0.05
|
Non-GAAP Net Income
- Omnicom Group Inc. - Adjusted2,3
|
$
334.5
|
$
1.67
|
|
$
329.5
|
$
1.61
|
|
|
1)
|
For the three months
ended March 31, 2023, operating expenses include $119.2 million
($91.0 million after tax) related to real estate repositioning
costs, which decreased diluted net income per share - Omnicom Group
Inc. by $0.45.
|
2)
|
Beginning with the
three months ended March 31, 2024, EBITA is defined as
operating income before amortization of acquired intangible assets
and internally developed strategic platform assets. As a result, we
reclassified the prior year to be consistent with the revised
definition, which reduced EBITA from previously reported amounts.
Included in the above table are the after-tax effects of the
amortization of acquired intangible assets and internally developed
strategic platform assets.
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3)
|
Diluted Shares for the
three months ended March 31, 2024 and 2023 in millions were
200.1 and 204.5, respectively.
|
|
|
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The above tables
reconcile GAAP financial measures of Operating Income, Net Income -
Omnicom Group Inc., and Net Income per Share - Diluted to adjusted
Non-GAAP financial measures of Non-GAAP Operating Income -
Adjusted, Non-GAAP Net Income-Omnicom Group Inc. - Adjusted and
Non-GAAP Adjusted Net Income per Share - Diluted. Management
believes these Non-GAAP measures are useful for investors to
evaluate the comparability of the performance of our business year
to year.
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View original
content:https://www.prnewswire.com/news-releases/omnicom-reports-first-quarter-2024-results-302118537.html
SOURCE Omnicom Group Inc.