Interpublic Announces Third Quarter and First Nine Months 2024 Results
Rhea-AI Summary
Interpublic announced its Q3 and first nine months 2024 financial results. Total revenue for Q3 was $2.63 billion, while net revenue was $2.24 billion, unchanged organically from Q3 2023. The company reported a non-cash goodwill impairment expense of $232.1 million related to digital specialist agencies and the sale process for R/GA and Huge. Net income was $20.1 million, with adjusted EBITA of $385.8 million and a margin of 17.2% on net revenue. Diluted earnings per share were $0.05 as reported and $0.70 adjusted.
For the first nine months, total revenue was $7.83 billion, with net revenue at $6.75 billion, a 0.9% decrease. The company saw an organic revenue increase of 1.0%. Operating income was $635.3 million, including the same goodwill impairment. Adjusted EBITA was $930.2 million, with a 13.8% margin.
Interpublic highlighted a strong new business pipeline and aims for 1% organic growth for the year. The company repurchased 7.3 million shares for $230.1 million and declared a dividend of $0.33 per share in Q3.
Positive
- Adjusted EBITA margin of 17.2% for Q3 2024.
- Organic revenue growth of 1.0% for the first nine months of 2024.
- Strong new business pipeline for Q4 and longer-term opportunities.
- Repurchased 7.3 million shares for $230.1 million.
Negative
- Non-cash goodwill impairment expense of $232.1 million.
- Reported net income decreased to $20.1 million from $64.3 million in Q3 2023.
- Decreased total revenue and net revenue for the first nine months of 2024.
News Market Reaction
On the day this news was published, IPG declined 5.82%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
New York, NY, Oct. 22, 2024 (GLOBE NEWSWIRE) --
- Total revenue including billable expenses was
$2.63 billion - Revenue before billable expenses ("net revenue") was
$2.24 billion , with organic revenue unchanged from the third quarter of 2023 - Non-cash goodwill impairment expense of
$232.1 million , related to digital specialist agencies and the sale process for R/GA and Huge - Reported net income was
$20.1 million - Adjusted EBITA was
$385.8 million - Margin of adjusted EBITA was
17.2% on revenue before billable expenses - Diluted earnings per share including goodwill charge was
$0.05 as reported and$0.70 as adjusted
Philippe Krakowsky, CEO of Interpublic:
“Net revenue in the third quarter was unchanged organically from the same period a year ago, which brings organic growth over the first nine months of this year to
“Third quarter results include non-cash goodwill impairment expense of
“The quarter also continued to see progress in the evolution of our offerings and organizational structure, as we invest in the stronger, growing areas within the portfolio. The launch of Interact marks the next evolution of our marketing intelligence engine, which integrates data flows across the campaign lifecycle and consumer journey. This core technology connects our entire portfolio, from brand research as well as audience insights and audience creation, all the way through to creative ideation, production, commerce, and personalized CRM programs through the use of generative AI. It also powers media activation and optimization, including earned and owned channels, delivering better marketing results across media channels and touchpoints for our clients, in real time.
“Looking forward, we are seeing a strong new business pipeline, for both Q4 activity and longer-term AOR opportunities, and we remain focused on achieving organic growth of approximately
Summary
Revenue
- Third quarter 2024: Total revenue, which includes billable expenses, was
$2.63 billion , compared$2.68 billion in the third quarter of 2023. - Revenue before billable expenses ("net revenue") was
$2.24 billion , a reported decrease of2.9% from the third quarter of 2023. - The organic change of net revenue was flat compared to the third quarter of 2023.
- First nine months 2024: Total revenue, which includes billable expenses, was
$7.83 billion , compared$7.87 billion in the first nine months of 2023. - Revenue before billable expenses ("net revenue") was
$6.75 billion , a reported decrease of0.9% from the first nine months of 2023. - The organic increase of net revenue was
1.0% from the first nine months of 2023.
Operating Results
- In the third quarter of 2024, operating income was
$132.9 million compared to$376.8 million in 2023. Operating results in the third quarter of 2024 include non-cash goodwill impairment of$232.1 million related to the write down of the carrying value of digital specialist agencies to fair value. Adjusted EBITA before restructuring charges was$385.8 million compared to$397.2 million for the same period in 2023. Third quarter 2024 margin of adjusted EBITA before restructuring charges was17.2% on revenue before billable expenses. - In the first nine months of 2024, operating income was
$635.3 million compared to$875.8 million in 2023. Operating results in the first nine months of 2024 include non-cash goodwill impairment of$232.1 million in the third quarter related to the write down of the carrying value of digital specialist agencies to fair value. Adjusted EBITA before restructuring charges was$930.2 million compared to$938.2 million for the same period in 2023. First nine months 2024 margin of adjusted EBITA before restructuring charges was13.8% on revenue before billable expenses. - Refer to reconciliations in the appendix within this press release for further detail.
Net Results
- In the third quarter of 2024, the income tax provision was
$85.3 million on income before income taxes of$109.5 million . - Third quarter 2024 net income available to IPG common stockholders was
$20.1 million , resulting in earnings of$0.05 per basic share and$0.05 per diluted share compared to earnings of$0.64 per basic share and$0.63 per diluted share for the same period in 2023. Net income and earnings per share in the third quarter of 2024 include after-tax expense of$211.4 million related to the non-cash charge to write down goodwill. Adjusted earnings were$0.70 per diluted share which was the same as a year ago. Third quarter 2024 adjusted earnings excludes after-tax amortization of acquired intangibles of$16.1 million , after-tax impairment of goodwill of$211.4 million , after-tax restructuring charges of$0.4 million and an after-tax loss of$16.5 million on the sales of businesses. - In the first nine months of 2024, the income tax provision was
$208.2 million on income before income taxes of$565.8 million . - First nine months 2024 net income available to IPG common stockholders was
$345.0 million , resulting in earnings of$0.92 per basic share and$0.91 per diluted share compared to earnings of$1.65 per basic share and$1.64 per diluted share for the same period in 2023. Net income and earnings per share in the first nine months of 2024 include after-tax expense of$211.4 million related to the non-cash charge to write down goodwill. Adjusted earnings were$1.66 per diluted share compared to adjusted earnings per diluted share of$1.81 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 nine months 2024 adjusted earnings excludes after-tax amortization of acquired intangibles of$48.8 million , after-tax impairment of goodwill of$211.4 million , after-tax restructuring charges of$1.1 million and an after-tax loss of$22.9 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 third quarter of 2024, total operating expenses, excluding billable expenses, restructuring charges, and amortization and impairment of acquired intangibles decreased
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
In the third 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
During the third quarter and first nine months of 2024, we recorded goodwill impairment of
Non-Operating Results and Tax
Net interest expense decreased by
Other expense, net was
The income tax provision in the third quarter of 2024 was
Balance Sheet
At September 30, 2024, cash and cash equivalents totaled
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
Common Stock Dividend
During the third 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 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.
APPENDIX
| 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 | | | (2.9) % | |||
| 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 | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 373.9 | 383.6 | ||||
| Diluted | 376.8 | 385.5 | ||||
| Dividends Declared Per Common Share | | | ||||
| 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 | | | (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 | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 376.2 | 385.0 | ||||
| Diluted | 378.7 | 386.8 | ||||
| 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 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 | | | | | | ||||||
| Total (Expenses) and Other Income3 | (23.4) | | (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 | | | | | | | |||||
| 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 | | | | | | | |||||
| 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 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 | | | | | | ||||||
| Total (Expenses) and Other Income3 | (69.5) | | (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 | | | | | | | |||||
| 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 | | | | | | | |||||
| 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 September 30, | Nine Months Ended September 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 | 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 | | | | | |||
| 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 | | | | | |||
| 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. | |||||||
| 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 | | | | | |||||
| Total (Expenses) and Other Income3 | (37.3) | | (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 | | | | | | ||||
| 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 | | | | | | ||||
| 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 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 | | | | | |||||
| Total (Expenses) and Other Income3 | (91.7) | | (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 | | | | | | ||||
| 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 | | | | | | ||||
| 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
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