IPG Announces Fourth Quarter and Full Year 2023 Results
- None.
- None.
Insights
The report highlights a stable financial performance with a modest organic growth in net revenue of 1.7% in the fourth quarter, which is a positive indicator for investors looking at the company's ability to grow revenue independently of acquisitions or divestitures. The full-year figures, however, show a slight organic decrease of 0.1%, which might indicate a need for strategic adjustments.
Furthermore, the adjusted EBITA margin of 16.7% reflects a healthy profitability level, slightly up from the previous year's 16.6%. This marginal increase, along with the company's ability to maintain margins while navigating through macroeconomic uncertainties, is commendable. The dividend increase and share repurchase authorization signal the board's confidence in the company's financial health and strategic direction, which could be perceived positively by the market.
From a market perspective, the company's performance in media, healthcare and specialty marketing services suggests strong sector capabilities, which is crucial as businesses continue to navigate technological disruptions and macroeconomic challenges. The planned investments in AI and data-powered tools indicate a forward-thinking approach, aligning with industry trends towards more personalized and efficient marketing strategies.
However, the forecasted organic net revenue growth for 2024 of 1% to 2% is conservative, reflecting the potential impact of ongoing macro uncertainties. Investors might be cautious, but those with a long-term view may appreciate the company's strategic investments, which could position it well for future growth.
Examining the broader economic context, the company's performance amidst macroeconomic uncertainty and sector-specific challenges, such as those faced by clients in the technology sector, is noteworthy. The ability to achieve growth in these conditions may be indicative of strong operational resilience and adaptability.
Moreover, the company's focus on financial flexibility and a strong balance sheet, as reflected by the increase in total debt year-over-year, will be crucial in weathering potential economic headwinds. The emphasis on maintaining financial flexibility suggests a prudent approach to capital allocation, which is particularly important in uncertain economic environments.
New York, NY, Feb. 08, 2024 (GLOBE NEWSWIRE) --
FOURTH QUARTER
- Total revenue, including billable expenses, was
$3.0 billion - Revenue before billable expenses ("net revenue") was
$2.6 billion , with organic growth of1.7% - Diluted earnings per share of
$1.21 as reported and$1.18 as adjusted
FULL YEAR
- Total revenue. including billable expenses, was
$10.9 billion - Revenue before billable expenses ("net revenue") was
$9.4 billion , with organic decrease of0.1% - Reported net income was
$1.1 billion - Adjusted EBITA before restructuring charges was
$1.6 billion , with margin of16.7% on revenue before billable expenses - Diluted earnings per share of
$2.85 as reported and$2.99 as adjusted - FY diluted EPS as reported and adjusted include second-quarter tax benefit of
$0.17 per share related to the conclusion of routine Federal tax audits
DIVIDEND & SHARE REPURCHASE
- Board approves
6% dividend increase to$0.33 per share per quarter and additional share repurchase authorization of$320 million
Philippe Krakowsky, CEO of IPG:
“We are pleased to report growth in the fourth quarter ahead of expectations, during our seasonally largest quarter and across each of our segments. The strength of our capabilities in media, healthcare and specialty marketing services was once again evident, as was the impact of macro uncertainty and challenges due to clients in the technology sector. These cross-currents continue to be in effect as we move into 2024.
“Looking ahead, we remain confident in the foundational strengths of our company. We anticipate that the strongest and most consistent growth areas of our business will perform well in the year ahead. We will continue to make strategic investments, including the ongoing development of our leading addressable capabilities, such as our data-powered tools, retail and performance media, and the expansion of our media buying models. Our current and prospective investment in AI ensures that this increasingly important technology extends to the full range of our offerings. Along with other strategic actions, this will allow us to continue to evolve our portfolio and asset mix.
“We expect organic net revenue growth for 2024 in a range of
Summary
Revenue
- Fourth quarter 2023 total revenue, which includes billable expenses, was
$3.02 billion , compared$2.99 billion in the fourth quarter of 2022. Revenue before billable expenses ("net revenue") was$2.59 billion , an increase of1.4% compared to the fourth quarter of 2022. The organic increase of net revenue was1.7% from the fourth quarter of 2022. - Full year 2023 total revenue, which includes billable expenses, was
$10.89 billion compared to$10.93 billion for the full year 2022. Revenue before billable expenses was$9.40 billion compared to$9.45 billion for the full year 2022. The organic decrease of net revenue was0.1% from the full year 2022.
Operating Results
- In the fourth quarter of 2023, operating income was
$606.8 million , including restructuring charges of$0.8 million , compared to$444.6 million , including restructuring charges of$101.7 million , for the same period in 2022. Adjusted EBITA before restructuring charges was$628.5 million in the fourth quarter of 2023, compared to$568.4 million for the same period in 2022. Fourth quarter 2023 margin of adjusted EBITA before restructuring charges on revenue before billable expenses was24.3% , compared to22.3% for the same period in 2022. - Operating income for the full year 2023 was
$1.48 billion , including restructuring charges of$0.1 million , compared to$1.38 billion , including restructuring charges of$102.4 million , for the same period in 2022. Adjusted EBITA before restructuring charges was$1.57 billion for the full year 2023 and for the same period in 2022. Our margin of adjusted EBITA before restructuring charges on revenue before billable expenses was16.7% in 2023, compared to16.6% in 2022. - Restructuring charges were
$0.8 million and$0.1 million for the fourth quarter and full year of 2023, respectively, and were related to adjustments to our restructuring actions taken in 2022 and 2020. - Restructuring charges were
$101.7 million and$102.4 million for the fourth quarter and full year 2022, respectively, and were related to restructuring actions taken in the fourth quarter of 2022, as well as adjustments to our restructuring actions taken in 2020. - Refer to reconciliations in the appendix within this press release for further detail.
Net Results
- In the fourth quarter of 2023, the Income tax provision was
$155.3 million on income before income taxes of$623.9 million . Income tax provision for the full year 2023 was$291.2 million on income before income taxes of$1.41 billion . - The income tax provision for the full year 2023 includes a benefit of
$64.2 million , or$0.17 per basic and diluted share, related to the settlement in the second quarter of 2023 of U.S. Federal Income Tax Audits for the years 2017-2018, which is primarily non-cash. - Fourth quarter 2023 net income available to IPG common stockholders was
$463.2 million , resulting in earnings of$1.21 per basic share and$1.21 per diluted share, compared to$0.77 and$0.76 , respectively, for the same period in 2022. Adjusted earnings were$1.18 per diluted share as adjusted for after-tax amortization of acquired intangibles of$16.7 million , after-tax restructuring charges of$0.6 million and an after-tax gain of$29.4 million on the sales of businesses. This compares to adjusted earnings of$1.02 per diluted share a year ago. - Full year 2023 net income available to IPG common stockholders was
$1,098.4 million , resulting in earnings of$2.86 per basic share and$2.85 per diluted share, compared to$2.40 and$2.37 , respectively, for the same period in 2022. Adjusted earnings were$2.99 per diluted share as adjusted for after-tax amortization of acquired intangibles of$67.1 million , after-tax restructuring charges of$0.2 million and an after-tax gain of$13.0 million on the sales of businesses. Full year 2023 basic and diluted earnings per share, both as reported and adjusted, include a positive impact of$0.17 related to the settlement of U.S. Federal Income Tax Audits for the years 2017-2018. Adjusted earnings were$2.75 per diluted share a year ago. - Refer to reconciliations in the appendix within this press release for further detail.
Operating Results
Revenue
Revenue before billable expenses was
Revenue before billable expenses was
Operating Expenses
For the fourth quarter of 2023, total operating expenses, excluding billable expenses decreased by
Staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, was
For the fourth quarter 2023 office and other direct expenses as a percentage of revenue before billable expenses increased slightly to
Selling, general and administrative expenses were
Depreciation and amortization expense decreased by
Restructuring charges were
Non-Operating Results and Tax
Net interest expense decreased by
Other Income (expense), net was
The income tax provision in the fourth quarter of 2023 was
The effective tax rate for the fourth quarter of 2023 was
Balance Sheet
At December 31, 2023, cash and cash equivalents totaled
Share Repurchase Program
During the fourth quarter of 2023, the Company repurchased 4.3 million shares of its common stock at an aggregate cost of
Common Stock Dividend
During the fourth quarter of 2023, the Company declared and paid a common stock cash dividend of
The Company also announced that its Board of Directors has declared 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.
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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 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 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 FOURTH QUARTER REPORT 2023 AND 2022 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Three Months Ended December 31, | ||||||
| 2023 | 2022 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue Before Billable Expenses | | | 1.4 % | |||
| Billable Expenses | 437.1 | 435.4 | 0.4 % | |||
| Total Revenue | 3,023.3 | 2,985.9 | 1.3 % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 1,536.9 | 1,556.9 | 1.3 % | |||
| Office and Other Direct Expenses | 352.9 | 345.3 | (2.2) % | |||
| Billable Expenses | 437.1 | 435.4 | (0.4) % | |||
| Cost of Services | 2,326.9 | 2,337.6 | 0.5 % | |||
| Selling, General and Administrative Expenses | 23.5 | 29.9 | 21.4 % | |||
| Depreciation and Amortization | 65.3 | 72.1 | 9.4 % | |||
| Restructuring Charges | 0.8 | 101.7 | 99.2 % | |||
| Total Operating Expenses | 2,416.5 | 2,541.3 | 4.9 % | |||
| Operating Income | 606.8 | 444.6 | 36.5 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (61.4) | (46.7) | ||||
| Interest Income | 43.5 | 22.7 | ||||
| Other Income (Expense), Net | 35.0 | (7.8) | ||||
| Total (Expenses) and Other Income | 17.1 | (31.8) | ||||
| Income Before Income Taxes | 623.9 | 412.8 | ||||
| Provision for Income Taxes | 155.3 | 109.2 | ||||
| Income of Consolidated Companies | 468.6 | 303.6 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 3.0 | 2.3 | ||||
| Net Income | 471.6 | 305.9 | ||||
| Net Income Attributable to Non-controlling Interests | (8.4) | (8.7) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders1: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 381.4 | 387.9 | ||||
| Diluted | 383.4 | 392.1 | ||||
| Dividends Declared Per Common Share | | | ||||
| 1 Earnings per share amounts calculated on an unrounded basis. | ||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS ANNUAL REPORT 2023 AND 2022 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Twelve Months Ended December 31, | ||||||
| 2023 | 2022 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue Before Billable Expenses | | | (0.5) % | |||
| Billable Expenses | 1,488.7 | 1,478.4 | 0.7 % | |||
| Total Revenue | 10,889.3 | 10,927.8 | (0.4) % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 6,243.9 | 6,258.3 | 0.2 % | |||
| Office and Other Direct Expenses | 1,342.5 | 1,346.4 | 0.3 % | |||
| Billable Expenses | 1,488.7 | 1,478.4 | (0.7) % | |||
| Cost of Services | 9,075.1 | 9,083.1 | 0.1 % | |||
| Selling, General and Administrative Expenses | 67.2 | 87.1 | 22.8 % | |||
| Depreciation and Amortization | 264.3 | 274.0 | 3.5 % | |||
| Restructuring Charges | 0.1 | 102.4 | 99.9 % | |||
| Total Operating Expenses | 9,406.7 | 9,546.6 | 1.5 % | |||
| Operating Income | 1,482.6 | 1,381.2 | 7.3 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (225.6) | (167.9) | ||||
| Interest Income | 140.8 | 56.6 | ||||
| Other Income (Expense), Net | 10.2 | (1.0) | ||||
| Total (Expenses) and Other Income | (74.6) | (112.3) | ||||
| Income Before Income Taxes | 1,408.0 | 1,268.9 | ||||
| Provision for Income Taxes | 291.2 | 318.4 | ||||
| Income of Consolidated Companies | 1,116.8 | 950.5 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 1.3 | 5.6 | ||||
| Net Income | 1,118.1 | 956.1 | ||||
| Net Income Attributable to Non-controlling Interests | (19.7) | (18.1) | ||||
| Net Income Attributable to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders1: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 384.1 | 391.5 | ||||
| Diluted | 385.9 | 395.1 | ||||
| Dividends Declared Per Common Share | | | ||||
| 1 Earnings per share amounts calculated on an unrounded basis. | ||||||
| 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 December 31, 2023 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gain on Business Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | 17.1 | | (19.7) | ||||||
| Income Before Income Taxes | 623.9 | (20.9) | (0.8) | 36.8 | 608.8 | ||||
| Provision for Income Taxes | 155.3 | 4.2 | 0.2 | (7.4) | 152.3 | ||||
| Effective Tax Rate | 24.9 % | 25.0 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 3.0 | 3.0 | |||||||
| Net Income Attributable to Non-controlling Interests | (8.4) | (8.4) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 381.4 | 381.4 | |||||||
| Dilutive effect of stock options and restricted shares | 2.0 | 2.0 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 383.4 | 383.4 | |||||||
| Earnings Per Share Available to IPG Common Stockholders4: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to a net gain as a result of a completed disposition 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 income (expense), net. | |||||||||
| 4 Earnings per share amounts calculated on an unrounded basis. | |||||||||
| 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) | |||||||||
| Twelve Months Ended December 31, 2023 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gain on Businesses Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | (74.6) | 16.4 | (91.0) | ||||||
| Income Before Income Taxes | 1,408.0 | (84.0) | (0.1) | 16.4 | 1,475.7 | ||||
| Provision for Income Taxes | 291.2 | 16.9 | (0.1) | (3.4) | 304.6 | ||||
| Effective Tax Rate | 20.7 % | 20.6 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 1.3 | 1.3 | |||||||
| Net Income Attributable to Non-controlling Interests | (19.7) | (19.7) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 384.1 | 384.1 | |||||||
| Dilutive effect of stock options and restricted shares | 1.8 | 1.8 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 385.9 | 385.9 | |||||||
| Earnings Per Share Available to IPG Common Stockholders4, 5: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to a net gain as a result of a completed disposition 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 calculated on an unrounded basis. | |||||||||
| 5 Basic and diluted earnings per share, both As Reported and Adjusted Results (Non-GAAP), include 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) (UNAUDITED) | |||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||
| Revenue Before Billable Expenses | | | | | |||
| Non-GAAP Reconciliation: | |||||||
| Net Income Available to IPG Common Stockholders | | | | | |||
| Add Back: | |||||||
| Provision for Income Taxes | 155.3 | 109.2 | 291.2 | 318.4 | |||
| Subtract: | |||||||
| Total (Expenses) and Other Income | 17.1 | (31.8) | (74.6) | (112.3) | |||
| Equity in Net Income of Unconsolidated Affiliates | 3.0 | 2.3 | 1.3 | 5.6 | |||
| Net Income Attributable to Non-controlling Interests | (8.4) | (8.7) | (19.7) | (18.1) | |||
| Operating Income | 606.8 | 444.6 | 1,482.6 | 1,381.2 | |||
| Add Back: | |||||||
| Amortization of Acquired Intangibles | 20.9 | 22.1 | 84.0 | 84.7 | |||
| Adjusted EBITA | 627.7 | 466.7 | 1,566.6 | 1,465.9 | |||
| Adjusted EBITA Margin on Net Revenue % | 24.3 % | 18.3 % | 16.7 % | 15.5 % | |||
| Restructuring Charges | 0.8 | 101.7 | 0.1 | 102.4 | |||
| Adjusted EBITA before Restructuring Charges | | | | | |||
| Adjusted EBITA before Restructuring Charges Margin on Net Revenue % | 24.3 % | 22.3 % | 16.7 % | 16.6 % | |||
| 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 December 31, 2022 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Losses on Business Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | (31.8) | | (23.5) | ||||||
| Income Before Income Taxes | 412.8 | (22.1) | (101.7) | (8.3) | 544.9 | ||||
| Provision for Income Taxes | 109.2 | 4.6 | 26.0 | 0.0 | 139.8 | ||||
| Effective Tax Rate | 26.5 % | 25.7 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 2.3 | 2.3 | |||||||
| Net Income Attributable to Non-controlling Interests | (8.7) | (8.7) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 387.9 | 387.9 | |||||||
| Dilutive effect of stock options and restricted shares | 4.2 | 4.2 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 392.1 | 392.1 | |||||||
| Earnings Per Share Available to IPG Common Stockholders 4, 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 non-cash loss related to the remeasurement of an equity method investment in which we acquired a controlling interest. | |||||||||
| 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 calculated on an unrounded basis. | |||||||||
| 5 Basic and diluted earnings per share, both As Reported and Adjusted Results (Non-GAAP), include a negative 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) | |||||||||
| Twelve Months Ended December 31, 2022 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Losses on Business Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | (112.3) | | (108.5) | ||||||
| Income Before Income Taxes | 1,268.9 | (84.7) | (102.4) | (3.8) | 1,459.8 | ||||
| Provision for Income Taxes | 318.4 | 17.3 | 25.8 | 0.1 | 361.6 | ||||
| Effective Tax Rate | 25.1 % | 24.8 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 5.6 | 5.6 | |||||||
| Net Income Attributable to Noncontrolling Interests | (18.1) | (18.1) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 391.5 | 391.5 | |||||||
| Dilutive effect of stock options and restricted shares | 3.6 | 3.6 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 395.1 | 395.1 | |||||||
| Earnings Per Share Available to IPG Common Stockholders 4, 5: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Includes a cash gain related to the sale of an equity investment, offset by losses on complete dispositions of businesses and the classification of certain assets as held for sale, a non-cash loss related to the deconsolidation of a previously consolidated subsidiary in which we maintain an equity interest, and a non-cash loss related to remeasurement of an equity method investment in which we acquired a controlling interest. | |||||||||
| 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 calculated on an unrounded basis. | |||||||||
| 5 Basic and diluted earnings per share, both As Reported and Adjusted Results (Non-GAAP), include a negative 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 in the fourth quarter of 2023?
What was the organic growth of IPG's net revenue in the fourth quarter of 2023?
What was the adjusted diluted earnings per share for IPG in the full year 2023?
What was the percentage increase in the dividend approved by IPG's Board of Directors?
How much was the additional share repurchase authorization approved by IPG?
