Omnicom Group Reports First Quarter 2019 Results Posted on April 16, 2019December 11, 2020 by Revanth Ravish NEW YORK, April 16, 2019 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share for the first quarter of 2019 increased three cents, or 2.6%, to $1.17 per share versus $1.14 per share for the first quarter of 2018. Net income for the first quarter of 2019 decreased $0.9 million, or 0.3%, to $263.2 million from $264.1 million in the first quarter of 2018. In the first quarter of 2018, income tax expense decreased, primarily as a result of the successful resolution of foreign tax claims, which resulted in a net increase to net income – Omnicom Group Inc. and diluted net income per common share of $13.3 million and six cents per share, respectively, for the prior period. Primarily due to the negative effects of foreign exchange rates and net disposition activity over the past year, Omnicom’s worldwide revenue in the first quarter of 2019 decreased 4.4% to $3,468.9 million from $3,629.6 million in the first quarter of 2018. The components of the change in revenue included a decrease in revenue from the negative foreign exchange rate impact of 3.4%, a decrease in acquisition revenue, net of disposition revenue of 3.6% and an increase in revenue from organic growth of 2.5% when compared to the first quarter of 2018. Organic growth in the first quarter of 2019 as compared to the first quarter of 2018 in our five fundamental disciplines was as follows: Advertising increased 5.1%, CRM Consumer Experience decreased 0.6%, CRM Execution & Support decreased 3.3%, Public Relations decreased 0.5% and Healthcare increased 6.8%. Across our regional markets, organic growth in the first quarter of 2019 as compared to the first quarter of 2018 was: 2.0% in the United States, 6.1% for Other North America, 1.3% in the United Kingdom, 4.0% for the Euro Markets and Other Europe, 2.1% for Asia Pacific, and 12.8% for the Middle East and Africa, while Latin America decreased 3.0%. Operating profit in the first quarter of 2019 increased $7.2 million, or 1.7%, to $428.9 million from $421.7 million in the first quarter of 2018. Our operating margin for the first quarter of 2019 increased to 12.4% versus 11.6% for the first quarter of 2018. For the first quarter of 2019, our effective income tax rate was 26.8% compared to 24.3% for the same period in 2018. The year over year difference in our effective tax rate was primarily the result of the successful resolution of foreign tax claims during the first quarter of 2018, which reduced the income tax expense in the prior period by $13.3 million. Non-GAAP Financial Measures We use certain non-GAAP financial measures in describing our performance. Non-GAAP 2018 Adjusted results, including Adjusted Income Tax Expense and Adjusted Net Income – Omnicom Group Inc., exclude the impact of the successful resolution of foreign tax claims, which was recorded in the first quarter of 2018. We believe that the Non-GAAP 2018 Adjusted results are useful measures for investors to understand the impact this item had on our reported results. 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 EBITA and EBITA margin are useful measures for investors to evaluate the performance of our business. The financial tables at the end of this document reconcile the first quarter 2018 GAAP financial measures of income tax expense and Net Income – Omnicom Group Inc. to the Non-GAAP 2018 Adjusted results for the first quarter of 2018, as well as the GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA for the periods presented. For the first quarter of 2019, EBITA increased $1.3 million, or 0.3%, to $450.5 million from $449.2 million in the first quarter of 2018. Our EBITA margin increased to 13.0% for the first quarter of 2019 versus 12.4% in the first quarter of 2018. 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 first quarter earnings conference call, go to https://investor.omnicomgroup.com/investor-relations/news-events-and-filings. Omnicom Group Inc. Consolidated Statements of Income Three Months Ended March 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2019 2018 (a) Revenue $ 3,468.9 $ 3,629.6 Operating Expenses: Salary and service costs 2,567.6 2,712.8 Occupancy and other costs 309.2 320.3 Costs of services 2,876.8 3,033.1 Selling, general and administrative expenses 103.6 105.4 Depreciation and amortization 59.6 69.4 3,040.0 3,207.9 Operating Profit 428.9 421.7 Interest Expense 63.0 62.3 Interest Income 17.0 15.4 Income Before Income Taxes 382.9 374.8 Income Tax Expense 102.7 90.9 Income (Loss) From Equity Method Investments (0.5) 0.8 Net Income 279.7 284.7 Net Income Attributed To Noncontrolling Interests 16.5 20.6 Net Income – Omnicom Group Inc. $ 263.2 $ 264.1 Net income per common share – Omnicom Group Inc. Basic $ 1.18 $ 1.15 Diluted $ 1.17 $ 1.14 Weighted average shares (in millions) Basic 223.2 230.2 Diluted 224.2 231.5 Dividends declared per common share $ 0.65 $ 0.60 (a) For the three months ended March 31, 2018, income tax was reduced by $13.3 million, primarily as a result of the successful resolution of foreign tax claims during the quarter. The impact of this item increased Net Income – Omnicom Group Inc. by $13.3 million and net income per common share – Omnicom Group Inc. by $0.06 per common share for the three months ended March 31, 2018. Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures – Income Tax Expense Three Months Ended March 31, 2018 (Unaudited) (Dollars in Millions) 2018 Income Tax Expense, as reported $ 90.9 Add: Income tax benefit from the resolution of foreign tax claims 13.3 Income Tax Expense, Non-GAAP 2018 Adjusted $ 104.2 The above table reconciles the U.S. GAAP financial measure of Income Tax Expense to the non-GAAP financial measure of Income Tax Expense, Non-GAAP 2018 Adjusted, which excludes the impact of the successful resolution of foreign tax claims, which was recorded in the first quarter of 2018, for the three months ended March 31, 2018. We believe that the amount excluding the impact of this item is a useful measure for investors to understand the impact of this item when comparing our reported results for the current year to the prior year. 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 – Net Income – Omnicom Group Inc. Three Months Ended March 31, 2018 (Unaudited) (Dollars in Millions) 2018 Net Income – Omnicom Group Inc., as reported $ 264.1 Less: Income tax benefit from the resolution of foreign tax claims 13.3 Net Income – Omnicom Group Inc., Non-GAAP 2018 Adjusted $ 250.8 The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measure of Net Income – Omnicom Group Inc., Non-GAAP 2018 Adjusted, which excludes the impact of the successful resolution of foreign tax claims, which was recorded in the first quarter of 2018, for the three months ended March 31, 2018. We believe that the amount excluding the impact of this item is a useful measure for investors to understand the impact of this item when comparing our reported results for the current year to the prior year. 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 – EBITA Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2019 2018 Net Income – Omnicom Group Inc. $ 263.2 $ 264.1 Net Income Attributed To Noncontrolling Interests 16.5 20.6 Net Income 279.7 284.7 Income (Loss) From Equity Method Investments (0.5) 0.8 Income Tax Expense 102.7 90.9 Income Before Income Taxes 382.9 374.8 Interest Income 17.0 15.4 Interest Expense 63.0 62.3 Operating Profit 428.9 421.7 Add back: Amortization of intangible assets 21.6 27.5 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 450.5 $ 449.2 Revenue $ 3,468.9 $ 3,629.6 EBITA $ 450.5 $ 449.2 EBITA Margin – % 13.0 % 12.4 % 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 EBITA and EBITA margin are useful measures for investors to evaluate the performance of our business. 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:https://www.prnewswire.com/news-releases/omnicom-group-reports-first-quarter-2019-results-300832422.html SOURCE Omnicom Group
Omnicom Group Schedules First Quarter 2019 Earnings Release and Conference Call Posted on April 11, 2019December 11, 2020 by Revanth Ravish NEW YORK, April 11, 2019 /PRNewswire/ — Omnicom Group (NYSE: OMC) will publish its first quarter 2019 results on Tuesday, April 16, 2019. The company will host a conference call to review first quarter results on Tuesday, April 16, 2019 at 8:30 AM (ET). The dial-in numbers for the conference call are (800) 230-1074 (domestic) and (612) 234-9960 (international). In addition, the conference call will be simulcast and archived at https://investor.omnicomgroup.com/investor-relations/news-events-and-filings. About Omnicom Group Inc.Omnicom Group (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. View original content:https://www.prnewswire.com/news-releases/omnicom-group-schedules-first-quarter-2019-earnings-release-and-conference-call-300831033.html SOURCE Omnicom Group
Synergy Worldwide Opens New Office In Manhattan Posted on April 4, 2019December 11, 2020 by Revanth Ravish Synergy Worldwide today announces the official opening of its newest office in Manhattan, further expanding US operations. An industry-leading medical communications agency and part of the DDB Health network, Synergy Worldwide already has a well-established US headquarters in Philadelphia. Extending operations to include New York will allow Synergy Worldwide to strengthen its offering to US-based clients, as well as those international companies headquartered in the area. “Creating a hub in New York is a logical step in our business growth strategy,” said Nina Hinchcliffe, Global President, Synergy Worldwide. “We have built an enviable reputation, maintaining enduring client relationships over the last 20 years, whilst continuing to build new ones as our business has grown.” She added: “Our success lies in the fact that we don’t believe in just providing off the shelf solutions. We have some very smart people, who have an affinity for complex science and data, can engage with leading expert opinion, and then combine this with a deep insight into the science of human nature, real-life behaviours, learning preferences and geographic nuances, to develop bespoke high-profile campaigns that deliver measurable results.” Josh Prince, Chief Marketing Officer at Omnicom Health Group said: “We are pleased to be welcoming Synergy Worldwide to its new office. Not only does it bring the Synergy team physically closer to other agencies in our network, it will also lead to improved connection and collaboration, something which will undoubtedly deliver benefits for clients.” Hinchcliffe added: “This is an exciting time for us and is a clear statement of our intent to continue to grow our operations worldwide. We plan to share more good news soon about the growth of Synergy Worldwide and our plans for further expansion.” For further information about our business or becoming a client please contact Barbara Mische, President, Synergy Worldwide US on +1 917 816 4331 or Ailsa Stewart, Managing Director, Synergy Worldwide London, +44 (0)208 334 2050. About Synergy Worldwide Synergy Worldwide (www.synergymedical.co.uk) is a health care communications and medical education agency, with its global headquarters in London, UK. With over 100 people working out of its three offices, Synergy delivers industry leading medical education programmes for its clients, based on a secret recipe that mixes a deep knowledge of science and data, with an understanding of the science of human nature. About DDB Health DDB Health (www.ddbhealth.com), part of the Omnicom Health Group, is a global network of healthcare communications companies dedicated to helping clients use creativity—and creative technology—as a force for good health. Through deep insight into customers, channels, and behaviour, DDB Health creates meaningful change on behalf of important healthcare brands. About Omnicom Health Group Omnicom Health Group (www.omnicomhealthgroup.com) is a global collective of communications companies with more than 3,200 dedicated healthcare communications specialists. It provides marketing services to the health and life-science industries through a combination of specialized agencies, customized client solutions, and collaborations with other Omnicom network agencies. Organized around four customer groups—healthcare professionals, patients, payers, and medical, evidence and regulatory stakeholders—Omnicom Health Group serves more than 100 clients in over 55 offices worldwide. About Omnicom Group Inc. Omnicom Group (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.
Omnicom’s Daggerwing Group named as a top 10 global leader in communications and change management consulting in 2019 ALM report Posted on April 4, 2019December 11, 2020 by Revanth Ravish In just one year, Daggerwing’s global rating jumped from #19 to #8 in relative ability to create impact for clients NEW YORK – April 4, 2019 –Daggerwing Group, part of Omnicom Group, (NYSE: OMC), has been named a top 10 rated global leader in communications and change management consulting in ALM Intelligence’s 2019 Vanguard report. The ALM Vanguard of Communications and Change Management Consulting Providers reportannually assesses firms in terms of their relative ability to create impact for their clients. After being rated as #19 for the first time in 2018, Daggerwing has jumped into the global leader category and is rated #8 for client impact. Other 2019 leaders named by ALM include Boston Consulting Group, McKinsey, PwC, Deloitte, EY, KPMG, North Highland and Eagle Hill Consulting. Omnicom is the only global marketing and communications network to have a change consultancy in the top ten. “Daggerwing joins the ranks of the Vanguard leaders for the first time this year for two key reasons. As a creative design firm with global reach, Daggerwing knows how to leverage the power of marketing and branding to enable behavioral and culture change,” says Liz DeVito, Associate Director, Management Consulting Research with ALM Intelligence in the report. “As a change consultancy, the firm brings a strategic, economical, business-led approach to change that resonates with its C-Suite clients.” In the capability area of strategy, Daggerwing Group claims the Best in Class spot. “Daggerwing has a unique ability to combine creative, insightful thinking with experience design to stimulate the executive imagination and identify strategic opportunities for change,” DeVito continues. “The firm is equally adept at answering client’s high-level questions about the impact of digital transformation on their future market position as it is in leveraging data analytics to help them look at their business through the eyes of employees and customers.” “Our people love coming to work every day knowing they get to make a difference in the most powerful way – by changing the behavior of our clients’ customers and employees,” says Daggerwing Group CEO, Ewan Main. “This achievement belongs to our people around the world, and the great clients who trust Daggerwing to help them with their biggest transformation challenges.” The study notes that over the past year, Daggerwing has expanded the context and scope of its services to address the challenges all executives and business leaders face as they cope with change across a range of business transformations, from cultural and organizational to customer-centric and digital. About Daggerwing Group Daggerwing Group, an Omnicom Group company, founded in 1999, is a global change consultancy operating in North America, EMEA and APAC. Daggerwing believes that a company’s pace of growth is tied to customer and employee behavior change. That’s why Daggerwing helps companies accelerate growth by changing customer and employee behavior, fast. Daggerwing helps clients deliver on their brand promise to customers, activate culture to improve business results, implement organizational and process change, and inspire and equip employees to improve performance. About ALM Intelligence ALM Intelligence, a division of ALM Media LLC, supports legal, consulting, and benefits decision-makers seeking guidance on critical business challenges. Their proprietary market reports and analysis, rating guides, prospecting tools, surveys, and rankings, inform and empower business leaders to meet business challenges with confidence. Please visit alm.com/intelligence for more information. For further information, contact: Lauren Southard Daggerwing Group 917-472-3707 [email protected]