附錄 99.1
| 立即發佈 | 紐約，紐約（2024年10月22日） | |||||||
Interpublic宣佈2024年第三季度和前9個月的業績
•總營業收入，包括計費費用在內，爲26.3億美元
•營業收入在不計收費開支前（「淨營業收入」）爲22.4億美元，有機營業收入與2023年第三季度持平
•非現金商譽減值費爲2.32億美元，與數字專業機構以及R/GA和Huge的銷售過程有關
•報告的淨利潤爲2010萬美元
•調整後的EBITA爲38580萬美元
•調整後的EBITA利潤率爲17.2％，基於扣除可計費費用前的營業收入
•稀釋每股收益包括商譽減值爲報告數$0.05，調整數爲$0.70
Interpublic首席執行官Philippe Krakowsky：
第三季度淨營業收入與去年同期相比有機保持不變，這使得今年前九個月的有機增長率達到了1.0%。在本季度，我們從媒體服務、體育營銷、數據管理和公關業務中看到了良好的增長貢獻。我們調整後的EBITA利潤率爲17.2%，強調了持續的經營紀律，因爲我們繼續在增長和業務轉型方面進行全企業投資。
第三季度業績中包括涉及數字專業機構的非現金商譽減值支出爲23200萬美元，以及關於R/GA和Huge戰略銷售流程的進展。
本季度還在我們產品和組織結構的演進方面取得進展，我們正在投資於組合中更強大、增長更快的領域。Interact的推出標誌着我們營銷智能引擎的下一個演進階段，它將跨越廣告活動生命週期和消費者旅程整合數據流。這一核心 科技 連接我們整個產品組合，從品牌研究、受衆洞察和受衆創造，一直到創意構思、製作、商業和通過生成式 人工智能 實現個性化CRm方案。它還支持媒體激活和優化，包括賺取的和擁有的渠道，爲我們的客戶在實時情況下通過各種媒體渠道和接觸點提供更好的營銷效果。
展望未來，我們看到一個強勁的新業務管道，無論是Q4活動還是長期AOR機會，我們都專注於實現有機增長
Interpublic集團 909 Third Avenue
紐約，NY 10022
電話：212-704-1200 傳真：212-704-1201
1
今年預計增長約1%。在這一水平上，我們繼續着眼於調整後的EBITA利潤率達到16.6%。我們長期致力於資本回報的承諾仍然是一個重要優先事項，我們強大的資產負債表爲我們繼續發展我們的產品和爲營銷人員提供的解決方案奠定了堅實基礎。
概括
營業收入
•2024年第三季度：總營業收入，包括應計費用，在26.3億美元，較2023年第三季度的26.8億美元有所下降。
•在計入可開支費用之前的營業收入（"淨收入"）爲22.4億美元，比2023年第三季度報告的下降2.9%。
•淨營業收入的有機增長與2023年第三季度相比持平。
•2024年前九個月：總營業收入，包括應收費用，在78.3億美元，與2023年前九個月78.7億美元相比。
•營業收入在扣除可開支費用（"淨收入"）後爲67.5億美元，比2023年前九個月報告的數字下降了0.9%。
•淨營業收入的有機增長率從2023年前九個月爲1.0%.
運營結果
•2024年第三季度營業收入爲13290萬美元，相比2023年的37680萬美元。2024年第三季度的營業結果包括涉及將數字專業機構的賬面價值減記至公允價值的非現金商譽減值23210萬美元。重組費用前調整後的EBITA爲38580萬美元，與2023年同期的39720萬美元相比。2024年第三季度重組費用前調整後的EBITA利潤率爲17.2%，基於營業收入，不包括可計費費用。
•2024年前九個月營業收入爲63530萬元，相比2023年的87580萬元。2024年前九個月營業收入包括第三季度23210萬元的非現金商譽減值，涉及將數字專業機構的賬面價值寫下至公允價值。調整前重組費用的調整前EBITA爲93020萬元，相比2023年同期的93820萬元。2024年前九個月調整前重組費用EBITA利潤率爲營業收入前可計費費用的13.8%。
•請參考本新聞稿附錄中的調解情況以獲取更多詳細信息。
Interpublic集團 909 Third Avenue
紐約，NY 10022
電話：212-704-1200 傳真：212-704-1201
2
淨結果
•2024年第三季度，所得稅費用爲8530萬美元，稅前所得爲10950萬美元。
•2024年第三季度淨利潤可供IPG普通股股東使用爲2010萬美元，導致基本每股收益和攤薄每股收益分別爲0.05美元，與2023年同期的基本每股收益爲0.64美元和攤薄每股收益爲0.63美元相比。2024年第三季度的淨利潤和每股收益包括稅後支出爲21140萬美元的非現金計提商譽減值費用。調整後每股收益爲0.70美元，與一年前相同。2024年第三季度調整後每股收益不包括獲得無形資產的稅後攤銷1610萬美元、商譽減值的稅後費用21140萬美元、稅後重組費用40萬美元以及售業務的1650萬美元的稅後損失。
•2024年前9個月，所得稅費用爲20820萬元，在稅前收入56580萬元。
•2024年前九個月可供IPG普通股股東使用的淨利潤爲34500萬美元，每股基本股盈利爲0.92美元，每股稀釋股盈利爲0.91美元，而2023年同期每股基本股盈利爲1.65美元，每股稀釋股盈利爲1.64美元。2024年前九個月的淨利潤和每股盈利包括與減記商譽相關的21,140萬美元稅後費用。調整後的每股收益爲1.66美元，較去年同期的調整後每股收益1.81美元有所下降。在2017-2018年解決美國聯邦所得稅審計問題時，2017-2018年的每股收益和調整後的每股收益均包括每股0.17美元的收益。2024年前九個月的調整後每股收益不包括後稅後獲得的無形資產攤銷4880萬美元、後稅商譽減值21140萬美元、後稅重組費用110萬美元以及後稅售業務虧損2290萬美元。
•有關更多詳情，請參閱本新聞稿附錄中的對賬表。
經營業績
Revenue
Revenue before billable expenses of $2.24 billion in the third quarter of 2024 decreased 2.9% compared with the same period in 2023. Compared to the third quarter of 2023, the effect of foreign currency translation was negative 0.5%, the impact of net dispositions was negative 2.4%, and organic net revenue was unchanged from prior year. The organic net revenue change in the third quarter excludes agencies R/GA and Huge, due to their classification as held-for-sale during the quarter.
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
3
Revenue before billable expenses of $6.75 billion in the first nine months of 2024 decreased 0.9% compared with the same period in 2023. Compared to the first nine months of 2023, the effect of foreign currency translation was negative 0.3%, the impact of net dispositions was negative 1.6%, and the resulting organic increase of net revenue was 1.0%.
Operating Expenses
In the third quarter of 2024, total operating expenses, excluding billable expenses, restructuring charges, and amortization and impairment of acquired intangibles decreased 2.9%. In the first nine months of 2024, total operating expenses, excluding billable expenses, restructuring charges, and amortization and impairment of acquired intangibles decreased 0.9% when compared to the first nine months of 2023.
In the third quarter of 2024, staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, decreased to 65.3% compared to 66.3% for the same period in 2023. Total salaries and related expenses in the third quarter of 2024 were $1.46 billion, a decrease of 4.4% from a year ago. The decrease was primarily driven by decreased base salaries, benefits and tax, performance-based employee compensation expense and temporary help expense. In the first nine months of 2024, staff cost ratio decreased to 68.0% compared to 69.1% for the same period in 2023. Total salaries and related expenses in the first nine months of 2024 were $4.59 billion, a decrease of 2.4% from a year ago. The decrease was primarily driven by factors similar to those noted above for the third quarter of 2024, partially offset by increased severance expense.
In the third quarter of 2024, office and other direct expenses as a percentage of revenue before billable expenses increased to 14.6% compared to 13.8% for the same period in 2023. Office and other direct expenses were $327.1 million in the third quarter of 2024, an increase of 2.6% from a year ago, reflecting increased expenses for technology and software, as well as professional consulting. In the first nine months of 2024, office and other direct expenses as a percentage of revenue before billable expenses increased to 14.9% compared to 14.5% for the same period in 2023. Office and other direct expenses were $1.01 billion in the first nine months of 2024, an increase of 1.8% from a year ago, primarily due to increases in technology and software costs and general corporate expenses, partially offset by decreases in occupancy expense.
Selling, general and administrative ("SG&A") expenses were $20.8 million in the third quarter of 2024, compared to $16.9 million a year ago, primarily due to increased strategic investment in base salaries, benefits and tax and technology & software. SG&A expenses were $86.4 million in the first nine months of 2024, compared to $43.7 million a year ago, primarily due to factors similar to those noted above for the third quarter of 2024.
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
4
Depreciation and amortization expense decreased by 1.1% and 1.8% during the third quarter and the first nine months of 2024, respectively.
During the third quarter and first nine months of 2024, we recorded goodwill impairment of $232.1 million.
Non-Operating Results and Tax
Net interest expense decreased by $2.9 million to $20.7 million in the third quarter of 2024 from a year ago, primarily attributable to higher interest rates, offset by lower average balances on net deposits. Net interest expense decreased by $10.8 million to $56.1 million in the first nine months of 2024 from a year ago, primarily due to factors similar to those noted above for the third quarter of 2024.
Other expense, net was $2.7 million in the third quarter of 2024, and 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. Other expense, net was $13.4 million in the first nine months of 2024, and primarily related to factors similar to those noted above for the third quarter of 2024.
The income tax provision in the third quarter of 2024 was $85.3 million on income before income taxes of $109.5 million. This compares to an income tax provision of $91.5 million for the third quarter of 2023 on income before income taxes of $339.5 million. The income tax provision in the first nine months of 2024 was $208.2 million on income before income taxes of $565.8 million. This compares to an income tax provision of $135.9 million for the first nine months of 2023 on income before income taxes of $784.1 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 Sheet
At September 30, 2024, cash and cash equivalents totaled $1.53 billion, compared to $2.39 billion at December 31, 2023 and $1.57 billion on September 30, 2023. Total debt was $2.94 billion at September 30, 2024, compared to $3.20 billion at December 31, 2023.
Share Repurchase Program
During the first nine months of 2024, the Company repurchased 7.3 million shares of its common stock at an aggregate cost of $230.1 million and an average price of $31.40 per share, including fees.
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
5
Common Stock Dividend
During the third quarter of 2024, the Company declared and paid a common stock cash dividend of $0.330 per share, for a total of $123.2 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
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
6
Cautionary Statement
This release contains forward-looking statements. Statements in this report that are not historical facts, including statements regarding goals, intentions and expectations as to future plans, trends, events, or future results of operations or financial position, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “intend,” “could,” “would,” “should,” “will likely result” or comparable terminology are intended to identify 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.
Actual results and outcomes could differ materially for a variety of reasons, including, among others:
◦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 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.
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
7
| APPENDIX | ||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS THIRD QUARTER REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Revenue before Billable Expenses | $ | 2,242.7 | $ | 2,309.0 | (2.9) | % | ||||||||||||||
| Billable Expenses | 386.1 | 369.5 | 4.5 | % | ||||||||||||||||
| Total Revenue | 2,628.8 | 2,678.5 | (1.9) | % | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||
| Salaries and Related Expenses | 1,464.0 | 1,531.1 | 4.4 | % | ||||||||||||||||
| Office and Other Direct Expenses | 327.1 | 318.8 | (2.6) | % | ||||||||||||||||
| Billable Expenses | 386.1 | 369.5 | (4.5) | % | ||||||||||||||||
| Cost of Services | 2,177.2 | 2,219.4 | 1.9 | % | ||||||||||||||||
| Selling, General and Administrative Expenses | 20.8 | 16.9 | (23.1) | % | ||||||||||||||||
| Depreciation and Amortization | 65.3 | 66.0 | 1.1 | % | ||||||||||||||||
Impairment of Goodwill | 232.1 | — | >(100)% | |||||||||||||||||
| Restructuring Charges | 0.5 | (0.6) | >(100)% | |||||||||||||||||
| Total Operating Expenses | 2,495.9 | 2,301.7 | (8.4) | % | ||||||||||||||||
| Operating Income | 132.9 | 376.8 | (64.7) | % | ||||||||||||||||
| Expenses and Other Income: | ||||||||||||||||||||
| Interest Expense | (54.9) | (58.7) | ||||||||||||||||||
| Interest Income | 34.2 | 35.1 | ||||||||||||||||||
| Other Expense, Net | (2.7) | (13.7) | ||||||||||||||||||
| Total (Expenses) and Other Income | (23.4) | (37.3) | ||||||||||||||||||
| Income Before Income Taxes | 109.5 | 339.5 | ||||||||||||||||||
| Provision for Income Taxes | 85.3 | 91.5 | ||||||||||||||||||
| Income of Consolidated Companies | 24.2 | 248.0 | ||||||||||||||||||
Equity in Net Loss of Unconsolidated Affiliates | — | (2.3) | ||||||||||||||||||
| Net Income | 24.2 | 245.7 | ||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (4.1) | (2.0) | ||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 20.1 | $ | 243.7 | ||||||||||||||||
Earnings Per Share Available to IPG Common Stockholders: | ||||||||||||||||||||
Basic | $ | 0.05 | $ | 0.64 | ||||||||||||||||
Diluted | $ | 0.05 | $ | 0.63 | ||||||||||||||||
Weighted-Average Number of Common Shares Outstanding: | ||||||||||||||||||||
Basic | 373.9 | 383.6 | ||||||||||||||||||
Diluted | 376.8 | 385.5 | ||||||||||||||||||
| Dividends Declared Per Common Share | $ | 0.330 | $ | 0.310 | ||||||||||||||||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A1
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS THIRD QUARTER REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Revenue before Billable Expenses | $ | 6,752.7 | $ | 6,814.4 | (0.9) | % | ||||||||||||||
| Billable Expenses | 1,082.0 | 1,051.6 | 2.9 | % | ||||||||||||||||
| Total Revenue | 7,834.7 | 7,866.0 | (0.4) | % | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||
| Salaries and Related Expenses | 4,594.4 | 4,707.0 | 2.4 | % | ||||||||||||||||
| Office and Other Direct Expenses | 1,007.6 | 989.6 | (1.8) | % | ||||||||||||||||
| Billable Expenses | 1,082.0 | 1,051.6 | (2.9) | % | ||||||||||||||||
| Cost of Services | 6,684.0 | 6,748.2 | 1.0 | % | ||||||||||||||||
| Selling, General and Administrative Expenses | 86.4 | 43.7 | (97.7) | % | ||||||||||||||||
| Depreciation and Amortization | 195.5 | 199.0 | 1.8 | % | ||||||||||||||||
Impairment of Goodwill | 232.1 | — | >(100)% | |||||||||||||||||
| Restructuring Charges | 1.4 | (0.7) | >(100)% | |||||||||||||||||
| Total Operating Expenses | 7,199.4 | 6,990.2 | (3.0) | % | ||||||||||||||||
| Operating Income | 635.3 | 875.8 | (27.5) | % | ||||||||||||||||
| Expenses and Other Income: | ||||||||||||||||||||
| Interest Expense | (175.6) | (164.2) | ||||||||||||||||||
| Interest Income | 119.5 | 97.3 | ||||||||||||||||||
| Other Expense, Net | (13.4) | (24.8) | ||||||||||||||||||
| Total (Expenses) and Other Income | (69.5) | (91.7) | ||||||||||||||||||
| Income Before Income Taxes | 565.8 | 784.1 | ||||||||||||||||||
| Provision for Income Taxes | 208.2 | 135.9 | ||||||||||||||||||
| Income of Consolidated Companies | 357.6 | 648.2 | ||||||||||||||||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.2) | (1.7) | ||||||||||||||||||
| Net Income | 357.4 | 646.5 | ||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (12.4) | (11.3) | ||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 345.0 | $ | 635.2 | ||||||||||||||||
Earnings Per Share Available to IPG Common Stockholders: | ||||||||||||||||||||
Basic | $ | 0.92 | $ | 1.65 | ||||||||||||||||
Diluted | $ | 0.91 | $ | 1.64 | ||||||||||||||||
Weighted-Average Number of Common Shares Outstanding: | ||||||||||||||||||||
Basic | 376.2 | 385.0 | ||||||||||||||||||
Diluted | 378.7 | 386.8 | ||||||||||||||||||
| Dividends Declared Per Common Share | $ | 0.990 | $ | 0.930 | ||||||||||||||||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A2
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Impairment of Goodwill | Restructuring Charges | Net Losses on Sales of Businesses1 | Adjusted Results (Non-GAAP) | ||||||||||||||||||||||||||||||
Operating Income and Adjusted EBITA before Restructuring Charges2 | $ | 132.9 | $ | (20.3) | $ | (232.1) | $ | (0.5) | $ | 385.8 | |||||||||||||||||||||||||
Total (Expenses) and Other Income3 | (23.4) | $ | (1.7) | (21.7) | |||||||||||||||||||||||||||||||
| Income Before Income Taxes | 109.5 | (20.3) | (232.1) | (0.5) | (1.7) | 364.1 | |||||||||||||||||||||||||||||
| Provision for Income Taxes | 85.3 | 4.2 | 20.7 | 0.1 | (14.8) | 95.5 | |||||||||||||||||||||||||||||
Equity in Net Loss of Unconsolidated Affiliates | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (4.1) | (4.1) | |||||||||||||||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 20.1 | $ | (16.1) | $ | (211.4) | $ | (0.4) | $ | (16.5) | $ | 264.5 | |||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 373.9 | 373.9 | |||||||||||||||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 2.9 | 2.9 | |||||||||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 376.8 | 376.8 | |||||||||||||||||||||||||||||||||
Earnings per Share Available to IPG Common Stockholders4: | |||||||||||||||||||||||||||||||||||
| Basic | $ | 0.05 | $ | (0.04) | $ | (0.57) | $ | (0.00) | $ | (0.04) | $ | 0.71 | |||||||||||||||||||||||
| Diluted | $ | 0.05 | $ | (0.04) | $ | (0.56) | $ | (0.00) | $ | (0.04) | $ | 0.70 | |||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A3
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Impairment of Goodwill | Restructuring Charges | Net Losses on Sales of Businesses1 | Adjusted Results (Non-GAAP) | ||||||||||||||||||||||||||||||
Operating Income and Adjusted EBITA before Restructuring Charges2 | $ | 635.3 | $ | (61.4) | $ | (232.1) | $ | (1.4) | $ | 930.2 | |||||||||||||||||||||||||
Total (Expenses) and Other Income3 | (69.5) | $ | (6.4) | (63.1) | |||||||||||||||||||||||||||||||
| Income Before Income Taxes | 565.8 | (61.4) | (232.1) | (1.4) | (6.4) | 867.1 | |||||||||||||||||||||||||||||
| Provision for Income Taxes | 208.2 | 12.6 | 20.7 | 0.3 | (16.5) | 225.3 | |||||||||||||||||||||||||||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.2) | (0.2) | |||||||||||||||||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (12.4) | (12.4) | |||||||||||||||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 345.0 | $ | (48.8) | $ | (211.4) | $ | (1.1) | $ | (22.9) | $ | 629.2 | |||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 376.2 | 376.2 | |||||||||||||||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 2.5 | 2.5 | |||||||||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 378.7 | 378.7 | |||||||||||||||||||||||||||||||||
Earnings per Share Available to IPG Common Stockholders4: | |||||||||||||||||||||||||||||||||||
| Basic | $ | 0.92 | $ | (0.13) | $ | (0.56) | $ | (0.00) | $ | (0.06) | $ | 1.67 | |||||||||||||||||||||||
| Diluted | $ | 0.91 | $ | (0.13) | $ | (0.56) | $ | (0.00) | $ | (0.06) | $ | 1.66 | |||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A4
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions) (UNAUDITED) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue Before Billable Expenses | $ | 2,242.7 | $ | 2,309.0 | $ | 6,752.7 | $ | 6,814.4 | |||||||||||||||
| Non-GAAP Reconciliation: | |||||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 20.1 | $ | 243.7 | $ | 345.0 | $ | 635.2 | |||||||||||||||
| Add Back: | |||||||||||||||||||||||
| Provision for Income Taxes | 85.3 | 91.5 | 208.2 | 135.9 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||
| Total (Expenses) and Other Income | (23.4) | (37.3) | (69.5) | (91.7) | |||||||||||||||||||
Equity in Net Loss of Unconsolidated Affiliates | 0.0 | (2.3) | (0.2) | (1.7) | |||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (4.1) | (2.0) | (12.4) | (11.3) | |||||||||||||||||||
| Operating Income | 132.9 | 376.8 | 635.3 | 875.8 | |||||||||||||||||||
| Add Back: | |||||||||||||||||||||||
| Amortization of Acquired Intangibles | 20.3 | 21.0 | 61.4 | 63.1 | |||||||||||||||||||
Impairment of Goodwill | 232.1 | — | 232.1 | — | |||||||||||||||||||
| Adjusted EBITA | $ | 385.3 | $ | 397.8 | $ | 928.8 | $ | 938.9 | |||||||||||||||
| Adjusted EBITA Margin on Revenue before Billable Expenses % | 17.2 | % | 17.2 | % | 13.8 | % | 13.8 | % | |||||||||||||||
| Restructuring Charges | 0.5 | (0.6) | 1.4 | (0.7) | |||||||||||||||||||
| Adjusted EBITA before Restructuring Charges | $ | 385.8 | $ | 397.2 | $ | 930.2 | $ | 938.2 | |||||||||||||||
| Adjusted EBITA before Restructuring Charges Margin on Revenue before Billable Expenses % | 17.2 | % | 17.2 | % | 13.8 | % | 13.8 | % | |||||||||||||||
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 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A5
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||||||||||||||||||||
| Three Months Ended September 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 | $ | 376.8 | $ | (21.0) | $ | 0.6 | $ | 397.2 | |||||||||||||||||||||
Total (Expenses) and Other Income3 | (37.3) | $ | (12.1) | (25.2) | |||||||||||||||||||||||||
| Income Before Income Taxes | 339.5 | (21.0) | 0.6 | (12.1) | 372.0 | ||||||||||||||||||||||||
| Provision for Income Taxes | 91.5 | 4.3 | (0.2) | 2.6 | 98.2 | ||||||||||||||||||||||||
| Equity in Net Loss of Unconsolidated Affiliates | (2.3) | (2.3) | |||||||||||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (2.0) | (2.0) | |||||||||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 243.7 | $ | (16.7) | $ | 0.4 | $ | (9.5) | $ | 269.5 | |||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 383.6 | 383.6 | |||||||||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 1.9 | 1.9 | |||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 385.5 | 385.5 | |||||||||||||||||||||||||||
Earnings per Share Available to IPG Common Stockholders4: | |||||||||||||||||||||||||||||
| Basic | $ | 0.64 | $ | (0.04) | $ | 0.00 | $ | (0.02) | $ | 0.70 | |||||||||||||||||||
| Diluted | $ | 0.63 | $ | (0.04) | $ | 0.00 | $ | (0.02) | $ | 0.70 | |||||||||||||||||||
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. | |||||||||||||||||||||||||||||
Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A6
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||||||||||||||||||||
| Nine Months Ended September 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 | $ | 875.8 | $ | (63.1) | $ | 0.7 | $ | 938.2 | |||||||||||||||||||||
Total (Expenses) and Other Income3 | (91.7) | $ | (20.4) | (71.3) | |||||||||||||||||||||||||
| Income Before Income Taxes | 784.1 | (63.1) | 0.7 | (20.4) | 866.9 | ||||||||||||||||||||||||
| Provision for Income Taxes | 135.9 | 12.7 | (0.3) | 4.0 | 152.3 | ||||||||||||||||||||||||
| Equity in Net Loss of Unconsolidated Affiliates | (1.7) | (1.7) | |||||||||||||||||||||||||||
| Net Income Attributable to Non-controlling Interests | (11.3) | (11.3) | |||||||||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 635.2 | $ | (50.4) | $ | 0.4 | $ | (16.4) | $ | 701.6 | |||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 385.0 | 385.0 | |||||||||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 1.8 | 1.8 | |||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 386.8 | 386.8 | |||||||||||||||||||||||||||
Earnings per Share Available to IPG Common Stockholders4,5: | |||||||||||||||||||||||||||||
| Basic | $ | 1.65 | $ | (0.13) | $ | 0.00 | $ | (0.04) | $ | 1.82 | |||||||||||||||||||
| Diluted | $ | 1.64 | $ | (0.13) | $ | 0.00 | $ | (0.04) | $ | 1.81 | |||||||||||||||||||
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 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax
A7