NEW YORK, Feb. 15, 2018
/PRNewswire/ -- Omnicom Group Inc. (NYSE: OMC) today announced
that its net income for the fourth quarter of 2017 decreased
$95.9 million, or 27.4%, to
$254.4 million from $350.3 million in the fourth quarter of
2016. Diluted net income per common share for the fourth
quarter of 2017 decreased thirty-eight
cents, or 25.9%, to $1.09 per
share versus $1.47 per share for the
fourth quarter of 2016. In the fourth quarter of 2017, we recorded
the net effect of the enactment of the "Tax Cuts and Jobs
Act" (the "2017 Tax Act"), which resulted in a net increase
of $106.3 million in income tax
expense. As a result, net income - Omnicom Group Inc. and
diluted net income per common share for the fourth quarter of 2017
was decreased by $106.3 million and
forty-six cents per share,
respectively.
Excluding the additional net income tax expense recorded in the
fourth quarter in connection with the enactment of the 2017 Tax
Act, net income for the fourth quarter of 2017 increased
$10.4 million, or 3.0%, to
$360.7 million from $350.3 million in the fourth quarter of 2016.
Excluding the impact of the 2017 Tax Act, diluted net income per
common share for the fourth quarter of 2017 increased eight cents, or 5.4%, to $1.55 per share versus $1.47 per share for the fourth quarter of
2016.
Omnicom's worldwide revenue in the fourth quarter of 2017
decreased 1.5% to $4,176.6 million
from $4,241.8 million in the fourth
quarter of 2016. The components of the change in revenue
included an increase in revenue from the positive foreign exchange
rate impact of 2.4%, a decrease in acquisition revenue, net of
disposition revenue of 5.5% and an increase in revenue from organic
growth of 1.6% when compared to the fourth quarter of
2016.
Across our regional markets, organic growth in the fourth
quarter of 2017 as compared to the fourth quarter of 2016 was 8.2%
in the Euro Markets and Other Europe, 6.0% in Asia Pacific and 1.9% in the Middle East and Africa, while North
America decreased 0.8%, the United Kingdom decreased 0.7% and Latin America decreased 0.3%.
In the fourth quarter of 2017, our CRM discipline was realigned
into two separate categories: (1) CRM Consumer Experience, which
includes Omnicom Precision Marketing Group's Digital / Direct
agencies as well as our Consulting & Branding agencies, Shopper
Marketing agencies and our Experiential Marketing agencies; and (2)
CRM Execution & Support, which includes Field Marketing, Sales
Support, Merchandising & Point of Sale and other Specialized
Marketing and Custom Communications agencies. We also realigned and
renamed our Specialty Communications discipline Healthcare, so that
it now exclusively includes agencies offering Healthcare Marketing
and Communication services.
Organic growth in the fourth quarter of 2017 as compared to the
fourth quarter of 2016 in our fundamental disciplines was as
follows: Advertising increased 1.2%, CRM Consumer Experience
increased 3.4%, CRM Execution & Support also increased 3.4% and
Public Relations increased 0.1%, while Healthcare decreased
1.9%.
Operating profit in the fourth quarter of 2017 increased
$18.2 million, or 3.0%, to
$620.1 million from $601.9 million in the fourth quarter of
2016. Our operating margin for the fourth quarter of 2017
increased to 14.8% versus 14.2% for the fourth quarter of 2016.
For the fourth quarter of 2017, our income tax rate was 50.2%
compared to 32.5% for the same period in 2016. The year over year
difference resulted from the enactment of the 2017 Tax Act, which
was signed into law on December 22,
2017. The 2017 Tax Act reduced the U.S. Federal
statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to
existing tax law which affect our tax positions related to
previously reported taxable income. As a result, we were
required to record tax expense on undistributed earnings of our
foreign subsidiaries and adjust our previously reported deferred
tax assets and liabilities to reflect the impact of the revised
statutory federal rate as of the enactment date. Income tax expense
for the fourth quarter of 2017 reflects a net increase of
$106.3 million related to the impact
of the 2017 Tax Act. Due to the timing of the enactment of the 2017
Tax Act, our financial statements reflect provisional amounts for
these items, and we expect to revise these estimates in future
periods, in compliance with guidance provided in SEC Staff
Accounting Bulletin 118 ("SEC SAB 118") as further information
becomes available.
Full Year
Net income - Omnicom Group Inc. for the twelve months ended
December 31, 2017 decreased $60.2
million, or 5.2%, to $1,088.4
million from $1,148.6 million
in the same period in 2016. Diluted net income per common share for
the twelve months ended December 31, 2017 decreased
thirteen cents, or 2.7%, to
$4.65 per share compared to
$4.78 per share for the twelve months
ended December 31, 2016.
Excluding the additional net income tax expense of $106.3 million recorded in the fourth quarter of
2017 in connection with the enactment of the 2017 Tax Act, net
income for the twelve months ended December 31, 2017 increased
$46.1 million, or 4.0%, to
$1,194.7 million from $1,148.6 million in the same period in 2016.
Excluding the impact of the 2017 Tax Act of forty-five cents per share, diluted net income
per common share for the twelve months ended December 31, 2017
increased thirty-two cents, or 6.7%,
to $5.10 per share versus
$4.78 per share for the twelve months
ended December 31, 2016.
Worldwide revenue for the twelve months ended December 31,
2017 decreased 0.9% to $15,273.6
million from $15,416.9 million
in the same period of 2016. The components of the change in
revenue included an increase in revenue from the positive
foreign exchange rate impact of 0.3%, a decrease in acquisition
revenue, net of disposition revenue of 4.2% and an increase in
revenue from organic growth of 3.0% when compared to the same
period of 2016.
Across our regional markets, organic growth for the twelve
months ended December 31, 2017 as compared to the same period
of 2016 was 0.6% in North America,
5.1% in the United Kingdom, 8.0%
in the Euro Markets and Other Europe, 5.8% in Asia Pacific, 0.6% in Latin America and 12.5% in the Middle East and Africa.
Organic growth for the twelve months ended December 31,
2017 compared to the same period in 2016 in our fundamental
disciplines, updated for the realignment described above, was as
follows: Advertising increased 3.9%, CRM Consumer Experience
increased 0.8%, CRM Execution & Support increased 4.0%, Public
Relations increased 0.3% and Healthcare increased 2.8%.
Operating profit for the twelve months ended December 31,
2017 increased $50.8 million, or
2.5%, to $2,059.7 million compared to
$2,008.9 million for the same period
in 2016. Our operating margin for the twelve months ended
December 31, 2017 increased to 13.5% versus 13.0% for the same
period in 2016.
For the twelve months ended December 31, 2017, our income
tax rate was 36.9% compared to 32.6% for the same period in 2016.
The year over year difference resulted from additional tax expense
recognized in the fourth quarter of 2017 in connection with the
enactment of the 2017 Tax Act, as detailed above.
The year over year difference to our tax expense was also
impacted by the adoption of FASB Accounting Standards Update
2016-09, Compensation - Stock Compensation: Improvements to
Employee Share-Based Payment Accounting ("ASU 2016-09") on
January 1, 2017. Income tax
expense for the twelve months ended December 31, 2017 included
a benefit of $20.8 million arising
from a cash tax deduction on restricted stock awards that vested
and stock option awards that were exercised in 2017 in excess of
the book tax deduction on the amortization of these awards over the
vesting period. In prior periods only the book tax deduction
was reflected in income tax expense. ASU 2016-09 is required
to be adopted prospectively, and prior periods have not been
restated.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures in describing our
performance. Net income - Omnicom Group Inc. and diluted net income
per common share excluding the impact of the 2017 Tax Act are
presented in the fourth quarter and full year results above.
Additionally, we use EBITA (defined as earnings before interest,
taxes and amortization of intangible assets) and EBITA margin
(defined as EBITA divided by revenue) as additional operating
performance measures, which exclude the non-cash amortization
expense of intangible assets (primarily consisting of amortization
of intangible assets arising from acquisitions). Accordingly, we
believe they are useful measures for investors to evaluate the
performance of our businesses. The financial tables at the end of
this document reconcile the GAAP financial measure of net income to
EBITA for the periods presented.
For the fourth quarter of 2017, EBITA increased $15.7 million, or 2.5%, to $647.1 million from $631.4
million in the fourth quarter of 2016. Our EBITA
margin increased to 15.5% for the fourth quarter of 2017 versus
14.9% in the fourth quarter of 2016.
For the twelve months ended December 31, 2017, EBITA
increased 2.3%, or $49.4 million, to
$2,173.5 million from $2,124.1 million for the same period in 2016. Our
EBITA margin for the twelve months ended December 31, 2017
increased to 14.2% versus 13.8% for the same period in 2016.
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.
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 the disposition date. The acquisition revenue and
disposition revenue amounts are netted in the presentation
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.
About 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.
Follow us on Twitter for the latest news.
For a live webcast or a replay of our fourth 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 December 31 (Unaudited)
(Dollars in Millions, Except Per Share Data)
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Revenue
|
$
|
4,176.6
|
|
|
$
|
4,241.8
|
|
Operating
Expenses:
|
|
|
|
Salary and service
costs
|
3,048.9
|
|
|
3,141.7
|
|
Occupancy and other
costs
|
316.3
|
|
|
304.8
|
|
Costs of
services
|
3,365.2
|
|
|
3,446.5
|
|
Selling, general and
administrative expenses
|
121.5
|
|
|
120.8
|
|
Depreciation and
amortization
|
69.8
|
|
|
72.6
|
|
|
3,556.5
|
|
|
3,639.9
|
|
Operating
Profit
|
620.1
|
|
|
601.9
|
|
Interest
Expense
|
55.3
|
|
|
52.2
|
|
Interest
Income
|
11.7
|
|
|
12.0
|
|
Income Before Income
Taxes
|
576.5
|
|
|
561.7
|
|
Income Tax Expense
(a) (b)
|
289.5
|
|
|
182.7
|
|
Income From Equity
Method Investments
|
0.8
|
|
|
1.4
|
|
Net Income
|
287.8
|
|
|
380.4
|
|
Net Income Attributed
To Noncontrolling Interests
|
33.4
|
|
|
30.1
|
|
Net Income -
Omnicom Group Inc.
|
254.4
|
|
|
350.3
|
|
Net income allocated
to participating securities
|
(0.3)
|
|
|
(1.6)
|
|
Net income available
for common shares
|
$
|
254.1
|
|
|
$
|
348.7
|
|
|
|
|
|
Net income per common
share - Omnicom Group Inc.
|
|
|
|
Basic
|
$
|
1.10
|
|
|
$
|
1.47
|
|
Diluted
|
$
|
1.09
|
|
|
$
|
1.47
|
|
|
|
|
|
Weighted average
shares (in millions)
|
|
|
|
Basic
|
231.2
|
|
|
236.5
|
|
Diluted
|
232.3
|
|
|
237.8
|
|
|
|
|
|
Dividend declared per
common share
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
(a)
|
On December 22, 2017,
the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the
Federal statutory tax rate from 35% to 21% effective January 1,
2018 and made several changes to existing tax law which affect our
tax assets and liabilities related to previously reported taxable
income. As a result, we are required to record to tax expense, as
of the enactment date, the effects of the changes to previously
reported tax assets and liabilities, including deferred tax
balances, undistributed earnings of foreign subsidiaries and other
items. We estimated the impact to be an increase to our tax expense
of $106.3 million for the three months ended December 31,
2017. We expect to revise these estimates in future periods
in compliance with the guidance provided in SEC SAB 118 as further
information becomes available.
|
|
|
(b)
|
On January 1, 2017,
we adopted ASU 2016-09, which requires all additional tax benefits
or deficiencies related to share-based compensation to be
recognized in the results of operations on the restricted stock
vesting date or on the exercise date for stock options. ASU
2016-09 is required to be adopted on a prospective basis and
retroactive restatement is not permitted. As a result, income
tax expense for the three months ended December 31, 2017
reflects a reduction of $1.3 million arising from a larger cash tax
deduction as compared to the book tax deduction resulting from the
vesting of restricted stock and stock options that were exercised
in the fourth quarter of 2017. The larger tax deduction is
primarily due to the increase in the intrinsic value of these
awards that resulted from an increase in the price of our common
stock since the grant date of the awards.
|
Omnicom Group
Inc.
Non-GAAP Financial Measures
Impact of the 2017 Tax Act
Three Months Ended December 31 (Unaudited)
(Dollars in Millions, Except Per Share Data)
|
|
|
|
|
2017
|
|
Reported
|
Impact
of
|
Excluding
|
|
2017
|
2017 Tax
Act
|
2017 Tax
Act
|
|
|
|
|
Income Before Income
Taxes
|
$
|
576.5
|
|
$
|
—
|
|
$
|
576.5
|
|
|
|
|
|
Income Tax
Expense
|
289.5
|
|
106.3
|
|
183.2
|
|
Tax Rate
%
|
50.2
|
%
|
|
31.8
|
%
|
|
|
|
|
Net Income -
Omnicom Group Inc.
|
$
|
254.4
|
|
$
|
(106.3)
|
|
$
|
360.7
|
|
Net income allocated
to participating securities
|
(0.3)
|
|
0.1
|
|
(0.4)
|
|
Net income available
for common shares
|
$
|
254.1
|
|
$
|
(106.2)
|
|
$
|
360.3
|
|
|
|
|
|
Diluted net income
per common share - Omnicom Group Inc.
|
$
|
1.09
|
|
$
|
(0.46)
|
|
$
|
1.55
|
|
|
|
|
|
Diluted weighted
average shares (in millions)
|
232.3
|
|
—
|
|
232.3
|
|
The above table presents the U.S. GAAP financial measures of
Income Before Income Taxes, Income Tax Expense, Net Income -
Omnicom Group Inc., Net income available for common shares and
Diluted net income per common share as reported, as well as the
non-GAAP amounts excluding the impact of the 2017 Tax Act,
for the periods presented. We believe the amounts excluding the
impact of the 2017 Tax Act are useful measures for investors to
understand the impact of the 2017 Tax Act on our reported results.
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
Twelve Months Ended December 31 (Unaudited)
(Dollars in Millions, Except Per Share Data)
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Revenue
|
$
|
15,273.6
|
|
|
$
|
15,416.9
|
|
Operating
Expenses:
|
|
|
|
Salary and service
costs
|
11,249.7
|
|
|
11,440.6
|
|
Occupancy and other
costs
|
1,232.1
|
|
|
1,230.6
|
|
Costs of
services
|
12,481.8
|
|
|
12,671.2
|
|
Selling, general and
administrative expenses
|
450.0
|
|
|
443.9
|
|
Depreciation and
amortization
|
282.1
|
|
|
292.9
|
|
|
13,213.9
|
|
|
13,408.0
|
|
Operating
Profit
|
2,059.7
|
|
|
2,008.9
|
|
Interest
Expense
|
224.5
|
|
|
209.7
|
|
Interest
Income
|
49.7
|
|
|
42.6
|
|
Income Before Income
Taxes
|
1,884.9
|
|
|
1,841.8
|
|
Income Tax Expense
(a) (b)
|
696.2
|
|
|
600.5
|
|
Income From Equity
Method Investments
|
3.5
|
|
|
5.4
|
|
Net Income
|
1,192.2
|
|
|
1,246.7
|
|
Net Income Attributed
To Noncontrolling Interests
|
103.8
|
|
|
98.1
|
|
Net Income -
Omnicom Group Inc.
|
1,088.4
|
|
|
1,148.6
|
|
Net income allocated
to participating securities
|
(1.6)
|
|
|
(6.5)
|
|
Net income available
for common shares
|
$
|
1,086.8
|
|
|
$
|
1,142.1
|
|
|
|
|
|
Net income per common
share - Omnicom Group Inc.
|
|
|
|
Basic
|
$
|
4.68
|
|
|
$
|
4.80
|
|
Diluted
|
$
|
4.65
|
|
|
$
|
4.78
|
|
|
|
|
|
Weighted average
shares (in millions)
|
|
|
|
Basic
|
232.3
|
|
|
237.9
|
|
Diluted
|
233.9
|
|
|
239.2
|
|
|
|
|
|
Dividend declared per
common share
|
$
|
2.25
|
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
|
(a)
|
On December 22, 2017,
the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the
Federal statutory tax rate from 35% to 21% effective January 1,
2018 and made several changes to existing tax law which affect our
tax assets and liabilities related to previously reported taxable
income. As a result, we are required to record to tax expense, as
of the enactment date, the effects of the changes to previously
reported tax assets and liabilities, including deferred tax
balances, undistributed earnings of foreign subsidiaries and other
items. We estimated the impact to be an increase to our tax expense
of $106.3 million for the twelve months ended December 31,
2017. We expect to revise these estimates in future
periods in compliance with the guidance provided in SEC SAB 118 as
further information becomes available.
|
|
|
(b)
|
On January 1, 2017,
we adopted ASU 2016-09, which requires all additional tax benefits
or deficiencies related to share-based compensation to be
recognized in the results of operations on the restricted stock
vesting date or on the exercise date for stock options. ASU
2016-09 is required to be adopted on a prospective basis and
retroactive restatement is not permitted. As a result, income
tax expense for the twelve months ended December 31, 2017
reflects a reduction of $20.8 million arising from a larger cash
tax deduction as compared to the book tax deduction resulting from
the vesting of restricted stock and stock options that were
exercised in 2017. The larger tax deduction is primarily due to the
increase in the intrinsic value of these awards that resulted from
an increase in the price of our common stock since the grant date
of the awards.
|
Omnicom Group
Inc.
Non-GAAP Financial Measures
Impact of the 2017 Tax Act
Twelve Months Ended December 31 (Unaudited)
(Dollars in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
2017
|
|
Reported
|
Impact
of
|
Excluding
|
|
2017
|
2017 Tax
Act
|
2017 Tax
Act
|
|
|
|
|
Income Before Income
Taxes
|
$
|
1,884.9
|
|
$
|
—
|
|
$
|
1,884.9
|
|
|
|
|
|
Income Tax
Expense
|
696.2
|
|
106.3
|
|
589.9
|
|
Tax Rate
%
|
36.9
|
%
|
|
31.3
|
%
|
|
|
|
|
Net Income -
Omnicom Group Inc.
|
$
|
1,088.4
|
|
$
|
(106.3)
|
|
$
|
1,194.7
|
|
Net income allocated
to participating securities
|
(1.6)
|
|
0.2
|
|
(1.8)
|
|
Net income available
for common shares
|
$
|
1,086.8
|
|
$
|
(106.1)
|
|
$
|
1,192.9
|
|
|
|
|
|
Diluted net income
per common share - Omnicom Group Inc.
|
$
|
4.65
|
|
$
|
(0.45)
|
|
$
|
5.10
|
|
|
|
|
|
Diluted weighted
average shares (in millions)
|
233.9
|
|
—
|
|
233.9
|
|
The above table presents the U.S. GAAP financial measures of
Income Before Income Taxes, Income Tax Expense, Net Income -
Omnicom Group Inc., Net income available for common shares and
Diluted net income per common share as reported, as well as the
non-GAAP amounts excluding the impact of the 2017 Tax Act for
the periods presented. We believe the amounts excluding the impact
of the 2017 Tax Act are useful measures for investors to understand
the impact of the 2017 Tax Act on our reported results. 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. Reconciliation of Non-GAAP Financial
Measures Three Months Ended December 31
(Unaudited)
(Dollars in Millions)
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Net Income -
Omnicom Group Inc.
|
$
|
254.4
|
|
|
$
|
350.3
|
|
Net Income Attributed
To Noncontrolling Interests
|
33.4
|
|
|
30.1
|
|
Net Income
|
287.8
|
|
|
380.4
|
|
Income From Equity
Method Investments
|
0.8
|
|
|
1.4
|
|
Income Tax
Expense
|
289.5
|
|
|
182.7
|
|
Income Before Income
Taxes
|
576.5
|
|
|
561.7
|
|
Interest
Income
|
11.7
|
|
|
12.0
|
|
Interest
Expense
|
55.3
|
|
|
52.2
|
|
Operating
Profit
|
620.1
|
|
|
601.9
|
|
Add back:
Amortization of intangible assets
|
27.0
|
|
|
29.5
|
|
Earnings before
interest, taxes and amortization of intangible assets
("EBITA")
|
$
|
647.1
|
|
|
$
|
631.4
|
|
|
|
|
|
Revenue
|
$
|
4,176.6
|
|
|
$
|
4,241.8
|
|
EBITA
|
$
|
647.1
|
|
|
$
|
631.4
|
|
EBITA Margin -
%
|
15.5
|
%
|
|
14.9
|
%
|
The above table reconciles the U.S. GAAP financial measure of
Net Income - Omnicom Group Inc. to EBITA (defined as earnings
before interest, taxes and amortization of intangibles) and EBITA
Margin (defined as EBITA divided by revenue) for the periods
presented. We use EBITA and EBITA margin as additional operating
performance measures, which exclude the non-cash amortization
expense of intangible assets (primarily consisting of amortization
of intangible assets arising from acquisitions). Accordingly, we
believe they are useful measures for investors 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.
Reconciliation of Non-GAAP Financial Measures
Twelve Months Ended December 31 (Unaudited)
(Dollars in Millions)
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Net Income -
Omnicom Group Inc.
|
$
|
1,088.4
|
|
|
$
|
1,148.6
|
|
Net Income Attributed
To Noncontrolling Interests
|
103.8
|
|
|
98.1
|
|
Net Income
|
1,192.2
|
|
|
1,246.7
|
|
Income From Equity
Method Investments
|
3.5
|
|
|
5.4
|
|
Income Tax
Expense
|
696.2
|
|
|
600.5
|
|
Income Before Income
Taxes
|
1,884.9
|
|
|
1,841.8
|
|
Interest
Income
|
49.7
|
|
|
42.6
|
|
Interest
Expense
|
224.5
|
|
|
209.7
|
|
Operating
Profit
|
2,059.7
|
|
|
2,008.9
|
|
Add back:
Amortization of intangible assets
|
113.8
|
|
|
115.2
|
|
Earnings before
interest, taxes and amortization of intangible assets
("EBITA")
|
$
|
2,173.5
|
|
|
$
|
2,124.1
|
|
|
|
|
|
Revenue
|
$
|
15,273.6
|
|
|
$
|
15,416.9
|
|
EBITA
|
$
|
2,173.5
|
|
|
$
|
2,124.1
|
|
EBITA Margin -
%
|
14.2
|
%
|
|
13.8
|
%
|
The above table reconciles the U.S. GAAP financial measure of
Net Income - Omnicom Group Inc. to EBITA (defined as earnings
before interest, taxes and amortization of intangibles) and EBITA
Margin (defined as EBITA divided by revenue) for the periods
presented. We use EBITA and EBITA margin as additional operating
performance measures, which exclude the non-cash amortization
expense of intangible assets (primarily consisting of amortization
of intangible assets arising from acquisitions). Accordingly, we
believe they are useful measures for investors 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.
View original
content:http://www.prnewswire.com/news-releases/omnicom-group-reports-fourth-quarter-and-full-year-2017-results-300599133.html
SOURCE Omnicom Group