Interpublic Announces Second Quarter and First Half 2024 Results
Interpublic (IPG) reported its Q2 2024 results, showing a total revenue of $2.71 billion, a slight increase from $2.67 billion in Q2 2023. Net revenue remained flat at $2.33 billion with a 1.7% organic growth. Net income was $214.5 million, translating to $0.57 per share, down from $0.69 per share in Q2 2023. Adjusted earnings per share were $0.61. Adjusted EBITA before restructuring charges was $338.9 million, with a margin of 14.6%.
For the first half of 2024, total revenue was $5.21 billion. The company's net revenue saw a minor increase to $4.51 billion, showing a 1.5% organic growth. Net income for H1 2024 was $324.9 million, or $0.86 per share, down from $1.01 per share in H1 2023. Adjusted earnings per share were $0.96. Adjusted EBITA before restructuring charges was $544.4 million, reflecting a margin of 12.1%.
IPG plans to achieve full-year organic growth of about 1% and targets an adjusted EBITA margin of 16.6%.
- Total revenue in Q2 2024 increased slightly to $2.71 billion from $2.67 billion in Q2 2023.
- Organic growth of net revenue was 1.7% in Q2 2024.
- Adjusted EBITA before restructuring charges increased to $338.9 million in Q2 2024.
- Net income for H1 2024 was $324.9 million.
- Strong balance sheet and liquidity with ongoing commitment to capital returns.
- Company repurchased 4.1 million shares at a cost of $130.1 million and declared a cash dividend.
- Net revenue in Q2 2024 remained flat at $2.33 billion.
- Net income per share declined to $0.57 in Q2 2024 from $0.69 in Q2 2023.
- Adjusted earnings per share dropped to $0.61 from $0.74 a year ago.
- Net income per share for H1 2024 fell to $0.86 from $1.01 in H1 2023.
- Office and other direct expenses as a percentage of revenue increased to 15.4% in Q2 2024.
Insights
The overall financial performance of Interpublic Group (IPG) for the second quarter and first half of 2024 shows a moderate but steady growth. Key financial metrics such as total revenue, net income and adjusted EBITA indicate a solid quarter despite the minimal organic revenue growth and some decreases in net revenue caused by foreign currency translation and net dispositions. This suggests that IPG is maintaining a stable course amidst economic challenges.
Short-term implications: While the net revenue decrease by 0.1% from the previous year might raise concerns, the organic growth of 1.7% is a positive sign that the company’s core operations are expanding. This growth, combined with an EBITA margin of 14.6%, indicates efficient cost management and operational effectiveness.
Long-term implications: The CEO's comments on focusing on integrating generative AI tools and technologies into their offerings signal strategic initiatives that could enhance future revenue streams. Additionally, IPG's strong balance sheet and commitment to capital returns, as demonstrated by its share repurchase program and dividend payouts, further buttress investor confidence.
IPG's report highlights the importance of specialized, high-value services in driving client growth and satisfaction. The company's focus on high-precision audience targeting and comprehensive use of data and technology suggests IPG is well-positioned in the competitive marketing landscape.
Market trends: The integration of generative AI tools into marketing solutions is a trend worth noting. This could potentially improve the efficiency and effectiveness of marketing campaigns, providing a competitive edge for IPG. The contributions from agencies such as IPG Mediabrands, IPG Health, Deutsch LA, Golin and Acxiom underline the diversified and robust nature of IPG’s service offerings.
Client expectations: IPG’s ability to offer precise audience targeting and robust ROI assessment tools helps clients see tangible value in their marketing investments. This capability can foster long-term client relationships and set IPG apart from competitors.
From a legal perspective, the mention of net dispositions impacting revenue and income tax provisions provides insight into the company's financial planning and strategic restructuring. The adjustments related to income tax provisions, particularly the settlement of U.S. Federal Income Tax Audits, highlight IPG’s proactive approach to managing its financial obligations and reducing uncertainties.
Tax implications: The tax provision adjustments reflect a normalized tax expense environment, which investors should consider when comparing year-over-year financial performance. The decrease in adjusted earnings per share from $0.74 to $0.61 also points to a more stable, less volatile earnings landscape post-settlement.
Regulatory insight: Investors should pay attention to any ongoing or future regulatory changes that might affect IPG’s financial structure or tax liabilities. The careful navigation of these legal landscapes reflects IPG’s commitment to maintaining compliance and optimizing financial outcomes.
New York, NY, July 24, 2024 (GLOBE NEWSWIRE) --
- Total revenue including billable expenses was
$2.71 billion - Revenue before billable expenses ("net revenue") was flat at
$2.33 billion , with an organic increase of1.7% - Reported net income was
$214.5 million - Adjusted EBITA before restructuring charges was
$338.9 million - Margin of adjusted EBITA before restructuring charges was
14.6% on revenue before billable expenses - Diluted earnings per share was
$0.57 as reported and$0.61 as adjusted
Philippe Krakowsky, CEO of IPG:
“Second quarter performance was solid, with moderate acceleration in organic growth, as well as margin expansion compared to the same period last year. Consistent with our longer-term performance, IPG Mediabrands and IPG Health led the way in the quarter. We also saw notable contributions to growth from Deutsch LA, Golin and Acxiom. Creatively, our agencies continued to garner exceptional levels of recognition for the quality of their ideas and innovation, across all marketing disciplines.
“The most successful businesses in our portfolio continue to demonstrate specialized, high-value services that identify and reach audiences with greater precision and accountability, in turn leading to growth in our clients’ brands and businesses. Much of this work is powered by our industry-leading audience data and a technology stack that unifies the marketing funnel. This enables marketers to assess and understand the value of their investments, whether on technology platforms, in earned and paid media, or in other key sales and retail channels. We continue to focus on these growth areas of the business, as well as on integrating generative AI tools and technologies into our content and creative offerings.
“Given results in the year to date, trends within our client roster, and macro sentiment, we expect to achieve full-year organic growth of approximately
Summary
Revenue
- Second quarter 2024: Total revenue, which includes billable expenses, was
$2.71 billion , compared$2.67 billion in the second quarter of 2023. - Revenue before billable expenses ("net revenue") was
$2.33 billion , a decrease of0.1% from the second quarter of 2023. - The organic increase of net revenue was
1.7% from the second quarter of 2023. - First half 2024: Total revenue, which includes billable expenses, was
$5.21 billion , compared$5.19 billion in the first half of 2023. - Revenue before billable expenses ("net revenue") was
$4.51 billion , an increase of0.1% from the first half of 2023. - The organic increase of net revenue was
1.5% from the first half of 2023.
Operating Results
- In the second quarter of 2024, operating income was
$318.2 million compared to$310.7 million in 2023. Adjusted EBITA before restructuring charges was$338.9 million compared to$330.2 million for the same period in 2023. Second quarter 2024 margin of adjusted EBITA before restructuring charges was14.6% on revenue before billable expenses. - In the first half of 2024, operating income was
$502.4 million compared to$499.0 million in 2023. Adjusted EBITA before restructuring charges was$544.4 million compared to$541.0 million for the same period in 2023. First half 2024 margin of adjusted EBITA before restructuring charges was12.1% on revenue before billable expenses. - Refer to reconciliations in the appendix within this press release for further detail.
Net Results
- In the second quarter of 2024, the income tax provision was
$75.6 million on income before income taxes of$295.7 million . - Second quarter 2024 net income available to IPG common stockholders was
$214.5 million , resulting in earnings of$0.57 per basic and diluted share compared to earnings of$0.69 per basic share and$0.68 per diluted share for the same period in 2023. Adjusted earnings were$0.61 per diluted share compared to adjusted earnings per diluted share of$0.74 a year ago. In 2023, earnings per share, both as reported and adjusted, included a benefit of$0.17 per diluted share related to the settlement of U.S. Federal Income Tax Audits for the years 2017-2018. Second quarter 2024 adjusted earnings excludes after-tax amortization of acquired intangibles of$16.2 million , after-tax restructuring charges of$0.2 million and an after-tax gain of$1.5 million on the sales of businesses. - In the first half of 2024, the income tax provision was
$122.9 million on income before income taxes of$456.3 million . - First half 2024 net income available to IPG common stockholders was
$324.9 million , resulting in earnings of$0.86 per basic and diluted share compared to earnings of$1.01 per basic and diluted share for the same period in 2023. Adjusted earnings were$0.96 per diluted share compared to adjusted earnings per diluted share of$1.11 a year ago. In 2023, earnings per share, both as reported and adjusted, included a benefit of$0.17 per diluted share related to the settlement of U.S. Federal Income Tax Audits for the years 2017-2018. First half 2024 adjusted earnings excludes after-tax amortization of acquired intangibles of$32.7 million , after-tax restructuring charges of$0.7 million and an after-tax loss of$6.4 million on the sales of businesses. - Refer to reconciliations in the appendix within this press release for further detail.
Operating Results
Revenue
Revenue before billable expenses of
Revenue before billable expenses of
Operating Expenses
In the second quarter of 2024, total operating expenses, excluding billable expenses, decreased
In the second quarter of 2024, staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, decreased to
In the second quarter of 2024, office and other direct expenses as a percentage of revenue before billable expenses increased to
Selling, general and administrative ("SG&A") expenses were
Depreciation and amortization expense decreased by
Non-Operating Results and Tax
Net interest expense decreased by
Other expense, net was
The income tax provision in the second quarter of 2024 was
Balance Sheet
At June 30, 2024, cash and cash equivalents totaled
Share Repurchase Program
During the first half of 2024, the Company repurchased 4.1 million shares of its common stock at an aggregate cost of
Common Stock Dividend
During the second quarter of 2024, the Company declared and paid a common stock cash dividend of
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
# # #
Contact Information
Tom Cunningham
(Press)
(212) 704-1326
Jerry Leshne
(Analysts, Investors)
(212) 704-1439
Cautionary Statement
This release contains forward-looking statements. Statements in this report that are not historical facts, including statements regarding guidance, goals, intentions, and expectations as to future plans, trends, events, or future results of operations or financial position, constitute 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, and are subject to change based on a number of factors, including those outlined under item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:
- 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 quarterly reports on Form 10-Q 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.
APPENDIX
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Three Months Ended June 30, | ||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue before Billable Expenses | | | (0.1) % | |||
| Billable Expenses | 382.9 | 338.0 | 13.3 % | |||
| Total Revenue | 2,710.0 | 2,666.5 | 1.6 % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 1,557.6 | 1,598.6 | 2.6 % | |||
| Office and Other Direct Expenses | 358.4 | 340.5 | (5.3) % | |||
| Billable Expenses | 382.9 | 338.0 | (13.3) % | |||
| Cost of Services | 2,298.9 | 2,277.1 | (1.0) % | |||
| Selling, General and Administrative Expenses | 27.6 | 13.9 | (98.6) % | |||
| Depreciation and Amortization | 65.0 | 66.5 | 2.3 % | |||
| Restructuring Charges | 0.3 | (1.7) | >(100)% | |||
| Total Operating Expenses | 2,391.8 | 2,355.8 | (1.5) % | |||
| Operating Income | 318.2 | 310.7 | 2.4 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (57.9) | (55.8) | ||||
| Interest Income | 36.6 | 28.1 | ||||
| Other Expense, Net | (1.2) | (4.4) | ||||
| Total (Expenses) and Other Income | (22.5) | (32.1) | ||||
| Income Before Income Taxes | 295.7 | 278.6 | ||||
| Provision for Income Taxes | 75.6 | 10.6 | ||||
| Income of Consolidated Companies | 220.1 | 268.0 | ||||
| Equity in Net (Loss) Income of Unconsolidated Affiliates | (0.5) | 0.7 | ||||
| Net Income | 219.6 | 268.7 | ||||
| Net Income Attributable to Non-controlling Interests | (5.1) | (3.2) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 376.3 | 385.7 | ||||
| Diluted | 378.7 | 387.7 | ||||
| Dividends Declared Per Common Share | | | ||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Six Months Ended June 30, | ||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue before Billable Expenses | | | 0.1 % | |||
| Billable Expenses | 695.9 | 682.1 | 2.0 % | |||
| Total Revenue | 5,205.9 | 5,187.5 | 0.4 % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 3,130.4 | 3,175.9 | 1.4 % | |||
| Office and Other Direct Expenses | 680.5 | 670.8 | (1.4) % | |||
| Billable Expenses | 695.9 | 682.1 | (2.0) % | |||
| Cost of Services | 4,506.8 | 4,528.8 | 0.5 % | |||
| Selling, General and Administrative Expenses | 65.6 | 26.8 | >(100)% | |||
| Depreciation and Amortization | 130.2 | 133.0 | 2.1 % | |||
| Restructuring Charges | 0.9 | (0.1) | >(100)% | |||
| Total Operating Expenses | 4,703.5 | 4,688.5 | (0.3) % | |||
| Operating Income | 502.4 | 499.0 | 0.7 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (120.7) | (105.5) | ||||
| Interest Income | 85.3 | 62.2 | ||||
| Other Expense, Net | (10.7) | (11.1) | ||||
| Total (Expenses) and Other Income | (46.1) | (54.4) | ||||
| Income Before Income Taxes | 456.3 | 444.6 | ||||
| Provision for Income Taxes | 122.9 | 44.4 | ||||
| Income of Consolidated Companies | 333.4 | 400.2 | ||||
| Equity in Net (Loss) Income of Unconsolidated Affiliates | (0.2) | 0.6 | ||||
| Net Income | 333.2 | 400.8 | ||||
| Net Income Attributable to Non-controlling Interests | (8.3) | (9.3) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 377.4 | 385.8 | ||||
| Diluted | 379.7 | 387.6 | ||||
| Dividends Declared Per Common Share | | | ||||
| 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 June 30, 2024 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gains on Sales of Businesses1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges2 | | | | | |||||
| Total (Expenses) and Other Income3 | (22.5) | | (24.6) | ||||||
| Income Before Income Taxes | 295.7 | (20.4) | (0.3) | 2.1 | 314.3 | ||||
| Provision for Income Taxes | 75.6 | 4.2 | 0.1 | (0.6) | 79.3 | ||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.5) | (0.5) | |||||||
| Net Income Attributable to Non-controlling Interests | (5.1) | (5.1) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 376.3 | 376.3 | |||||||
| Dilutive effect of stock options and restricted shares | 2.4 | 2.4 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 378.7 | 378.7 | |||||||
| Earnings per Share Available to IPG Common Stockholders4: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to gains 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. | |||||||||
| 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) | |||||||||
| Six Months Ended June 30, 2024 | |||||||||
| 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 | | | | | |||||
| Total (Expenses) and Other Income3 | (46.1) | | (41.4) | ||||||
| Income Before Income Taxes | 456.3 | (41.1) | (0.9) | (4.7) | 503.0 | ||||
| Provision for Income Taxes | 122.9 | 8.4 | 0.2 | (1.7) | 129.8 | ||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.2) | (0.2) | |||||||
| Net Income Attributable to Non-controlling Interests | (8.3) | (8.3) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 377.4 | 377.4 | |||||||
| Dilutive effect of stock options and restricted shares | 2.3 | 2.3 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 379.7 | 379.7 | |||||||
| Earnings per Share Available to IPG Common Stockholders4: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 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. | |||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions) (UNAUDITED) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Revenue Before Billable Expenses | | | | | |||
| Non-GAAP Reconciliation: | |||||||
| Net Income Available to IPG Common Stockholders | | | | | |||
| Add Back: | |||||||
| Provision for Income Taxes | 75.6 | 10.6 | 122.9 | 44.4 | |||
| Subtract: | |||||||
| Total (Expenses) and Other Income | (22.5) | (32.1) | (46.1) | (54.4) | |||
| Equity in Net (Loss) Income of Unconsolidated Affiliates | (0.5) | 0.7 | (0.2) | 0.6 | |||
| Net Income Attributable to Non-controlling Interests | (5.1) | (3.2) | (8.3) | (9.3) | |||
| Operating Income | 318.2 | 310.7 | 502.4 | 499.0 | |||
| Add Back: | |||||||
| Amortization of Acquired Intangibles | 20.4 | 21.2 | 41.1 | 42.1 | |||
| Adjusted EBITA | | | | | |||
| Adjusted EBITA Margin on Revenue before Billable Expenses % | 14.6 % | 14.3 % | 12.1 % | 12.0 % | |||
| Restructuring Charges | 0.3 | (1.7) | 0.9 | (0.1) | |||
| Adjusted EBITA before Restructuring Charges | | | | | |||
| Adjusted EBITA before Restructuring Charges Margin on Revenue before Billable Expenses % | 14.6 % | 14.2 % | 12.1 % | 12.0 % | |||
| 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. | |||||||
| 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 June 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 | | | | | |||||
| Total (Expenses) and Other Income3 | (32.1) | | (28.0) | ||||||
| Income Before Income Taxes | 278.6 | (21.2) | 1.7 | (4.1) | 302.2 | ||||
| Provision for Income Taxes | 10.6 | 4.2 | (0.4) | 0.1 | 14.5 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 0.7 | 0.7 | |||||||
| Net Income Attributable to Non-controlling Interests | (3.2) | (3.2) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 385.7 | 385.7 | |||||||
| Dilutive effect of stock options and restricted shares | 2.0 | 2.0 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 387.7 | 387.7 | |||||||
| Earnings per Share Available to IPG Common Stockholders4,5: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 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 | |||||||||
| 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. | |||||||||
| 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) | |||||||||
| Six Months Ended June 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 | | | | | |||||
| Total (Expenses) and Other Income3 | (54.4) | | (46.1) | ||||||
| Income Before Income Taxes | 444.6 | (42.1) | 0.1 | (8.3) | 494.9 | ||||
| Provision for Income Taxes | 44.4 | 8.4 | (0.1) | 1.4 | 54.1 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 0.6 | 0.6 | |||||||
| Net Income Attributable to Non-controlling Interests | (9.3) | (9.3) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 385.8 | 385.8 | |||||||
| Dilutive effect of stock options and restricted shares | 1.8 | 1.8 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 387.6 | 387.6 | |||||||
| Earnings per Share Available to IPG Common Stockholders4,5: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 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 | |||||||||
| 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. | |||||||||
FAQ
What was IPG's total revenue for Q2 2024?
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What was IPG's adjusted EBITA for Q2 2024?
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