NEW YORK, April 27 /PRNewswire-FirstCall/ -- Omnicom Group Inc.
(NYSE: OMC) today announced that net income for the first quarter of 2004
increased 17% to $135.6 million from $115.5 million in the first quarter of
2003. Diluted earnings per share in the first quarter of 2004 increased 16%
to $0.72 per share from $0.62 per share in the first quarter of 2003.
Worldwide revenue increased 15% to $2,231.4 million from $1,937.2 million
in the first quarter of 2003. Domestic revenue for the first quarter of 2004
increased 11% to $1,221.2 million compared to $1,099.6 million in 2003.
International revenue increased 21% to $1,010.2 million compared to $837.6
million last year.
In accordance with SFAS No. 123, "Accounting for Stock Based
Compensation", as amended by SFAS 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure, an amendment for FASB Statement No.
123", we elected, effective January 1, 2004, to account for employee stock
compensation using the fair value method. As a result, the fair value of
stock-based employee compensation, including unvested employee stock options
issued and outstanding, were recorded as an expense utilizing the modified
prospective method as set forth in SFAS 148. Additionally, our results for
the quarter ended March 31, 2003 have been restated utilizing the retroactive
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global
advertising, marketing and corporate communications company. Omnicom's
branded networks and numerous specialty firms provide advertising, strategic
media planning and buying, direct and promotional marketing, public relations
and other specialty communications services to over 5,000 clients in more than
For a live webcast and/or a replay of our first quarter earnings
conference call, go to www.omnicomgroup.com/InvestorRelations.
Omnicom Group Inc.
(In Millions of Dollars, Except Per Share Data)
Three Months Ended March 31 2004 2003 (a)
Revenue $2,231.4 $1,937.2
Operating expenses 2,002.1 1,735.0
Operating income 229.3 202.2
Net interest expense 10.4 8.3
Income before income taxes 218.9 193.9
Income taxes 73.6 67.1
Income after income taxes 145.3 126.8
Equity in affiliates 2.5 2.5
Minority interests (12.2) (13.8)
Net income $135.6 $115.5
Earnings per share
Basic $0.72 $0.62
Diluted $0.72 $0.62
Weighted average shares (in millions)
Basic 187.9 186.6
Diluted (b) 188.8 186.6
Dividend declared per share $0.225 $0.200
(a) In accordance with the adoption of SFAS No. 123, as amended by SFAS
148, on January 1, 2004 we restated our quarterly financial
information for the quarter ended March 31, 2003 as if we had used the
fair value method to account for employee stock compensation beginning
January 1, 2003.
(b) Diluted earnings per share for 2004 and 2003 was calculated using an
assumed increase in net income of $274.8 thousand and $240.0 thousand
respectively, related to the after-tax compensation expense from
dividends on restricted shares.
SOURCE Omnicom Group Inc.
Katie Beaule [email protected]omnicomgroup.com