IPG Announces Full Year and Fourth Quarter 2020 Results
IPG reported a fourth quarter net revenue of $2.28 billion, a 6.1% decrease year-over-year, with organic net revenue down 5.4%. U.S. revenue declined 1.8%, while international markets saw a 10.5% drop. Diluted earnings per share stood at $0.28, adjusted at $0.86. For the full year, net revenue decreased 6.5% and adjusted EBITA before restructuring charges was $1.09 billion, with a margin of 13.5%. A 6% increase in quarterly dividend was approved. CEO Philippe Krakowsky emphasized resilience amid the pandemic.
- Full-year adjusted EBITA before restructuring charges was $1.09 billion.
- Quarterly dividend increased by 6%.
- Fourth quarter net revenue decreased by 6.1% year-over-year.
- Full year net revenue decreased by 6.5%.
New York, Feb. 10, 2021 (GLOBE NEWSWIRE) --
- Fourth quarter reported net revenue of
$2.28 billion , a decrease of6.1% from a year ago, with organic net revenue decrease of5.4% , due to challenging macroeconomic environment - Fourth quarter organic net revenue decreases of
1.8% in the U.S. and10.5% in International markets - Fourth quarter diluted earnings per share of
$0.28 as reported and$0.86 as adjusted - Full year reported net revenue decrease of
6.5% , and organic net revenue decrease of4.8% - Full year reported net income was
$351.1 million , including restructuring charges, and adjusted EBITA before restructuring charges was$1.09 billion - Full year adjusted EBITA before restructuring charges margin on net revenue of
13.5% - Full year diluted earnings per share of
$0.89 and$1.73 as adjusted - Management continued a program of structural operating cost reduction, resulting in restructuring charges of
$413.8 million for the full year - Board approves
6% increase in quarterly dividend
Philippe Krakowsky, CEO of IPG:
"Our focus remains on mitigating the impact of the health crisis on our clients, our business, and most important, our people. Their achievements have been remarkable, and I want to express our admiration for their resilience, and our appreciation for their ongoing commitment and effort.”
“As expected, our results this quarter continue to reflect the effect of the pandemic. Under challenging conditions, we reported a solid fourth quarter, especially in the U.S., and full year performance that once again should place us at the top of our sector. We continued to be disciplined with respect to expenses, proactive and strategic in our approach to structural cost actions, while simultaneously investing in our business during the year to accelerate areas of strongest opportunity and growth. That investment continues to result in differentiated capabilities and forward-looking offerings, which are in demand and driving success in the marketplace.”
“Heading into 2021, we are confident of the strength and competitiveness of our offerings, the talent within our group, and the value that our services can deliver by ensuring that clients' businesses and brands thrive in the digital economy. Our commitment to a strong balance sheet and financial flexibility remains a key priority, and the action by our Board announced today to increase our dividend further speaks to confidence in the forward trajectory of our company. While visibility into the full year remains challenging, due to exceptional macroeconomic circumstances, we fully expect to return to positive organic growth over the course of the year, and to post full-year 2021 growth consistent with the industry, on top of IPG’s 2020 outperformance relative to our peer group. Along with that growth, we expect to continue to build on our long-term record of improving profitability and sustained value creation.”
Summary
Revenue
- Fourth quarter 2020 net revenue was
$2.28 billion , compared to$2.43 billion in the fourth quarter of 2019. During the quarter, the organic net revenue decrease was5.4% , while the effect of foreign currency translation was positive0.1% , and the impact of net dispositions was negative0.8% . Fourth quarter 2020 total revenue, which includes billable expenses, was$2.55 billion , compared to$2.90 billion in 2019. - Full year 2020 net revenue was
$8.06 billion , compared to$8.63 billion in 2019. During the year, the organic net revenue decrease was4.8% , while the effect of foreign currency translation was negative0.8% , and the impact of net dispositions was negative0.9% . Full year 2020 total revenue, which includes billable expenses, was$9.06 billion , compared to$10.22 billion in 2019.
Operating Results
- Operating income in the fourth quarter of 2020 was
$223.4 million , including restructuring charges of$253.9 million , compared to$491.3 million in 2019. Adjusted EBITA before restructuring charges was$498.8 million in the fourth quarter of 2020, compared to adjusted EBITA of$512.7 million for the same period in 2019. Adjusted EBITA before restructuring charges margin on net revenue was21.8% , compared to adjusted EBITA margin of21.1% for the same period in 2019. - Operating income for the full year 2020 was
$588.4 million , including restructuring charges of$413.8 million , compared to$1.09 billion in 2019, including restructuring charges of$33.9 million . Adjusted EBITA before restructuring charges was$1.09 billion for the full year 2020, compared to$1.20 billion for the same period in 2019. Adjusted EBITA before restructuring charges margin on net revenue was13.5% in 2020, compared to14.0% in 2019. - In the fourth quarter and full year of 2020, the Company recognized restructuring charges of
$253.9 million and$413.8 million , respectively, of which$169.9 million and$265.6 million , respectively, were non-cash. We expect that our restructuring actions taken throughout this year will together result in annualized structural operating expense savings of approximately$160 million . - Refer to reconciliations on page 13 for more detail.
Net Results
- Income tax provision in the fourth quarter of 2020 was
$58.1 million on income before income taxes of$173.6 million . - Fourth quarter 2020 net income available to IPG common stockholders was
$112.3 million , resulting in earnings of$0.29 per basic share and$0.28 per diluted share, compared to$0.85 and$0.84 , respectively, for the same period in 2019. Adjusted earnings were$0.86 per diluted share as adjusted for after-tax amortization of acquired intangibles of$17.3 million , after-tax restructuring charges of$197.0 million , and an after-tax loss of$13.2 million on the sales of businesses. This compares to adjusted earnings of$0.88 per diluted share a year ago. - Income tax provision for the full year 2020 was
$8.0 million on income before income taxes of$361.3 million , primarily driven by an income tax benefit of$136.2 million related to the finalization and settlement of the U.S. Federal income tax audit of the years 2006 through 2016. - Full year 2020 net income available to IPG common stockholders was
$351.1 million , resulting in earnings of$0.90 per basic share and$0.89 per diluted share, compared to$1.70 and$1.68 , respectively, for the same period in 2019. Adjusted earnings were$1.73 per diluted share as adjusted for after-tax amortization of acquired intangibles of$69.0 million , after-tax restructuring charges of$320.7 million , an after-tax loss of$62.0 million on the sales of businesses, and the net positive impact of various discrete tax items of$122.6 million . This compares to adjusted earnings of$1.93 per diluted share a year ago. - Refer to reconciliations on pages 11 to 15 for more detail.
Operating Results
Revenue
During the fourth quarter of 2020, net revenue of
For the full year 2020, net revenue of
Operating Expenses
For the fourth quarter of 2020, total operating expenses, excluding billable expenses and including restructuring charges, increased by
Staff cost ratio, which is total salaries and related expenses as a percentage of net revenue, was
For the fourth quarter and full year 2020, office and other direct expenses as a percentage of net revenue decreased to
For the fourth quarter of 2020, selling, general and administrative expenses as a percentage of net revenue was
For the fourth quarter and full year 2020, depreciation and amortization as a percentage of net revenue was
During the fourth quarter and full year 2020, restructuring charges were
Non-Operating Results and Tax
Net interest expense increased by
Other expense, net was
The income tax provision in the fourth quarter of 2020 was
The effective tax rate for the fourth quarter of 2020 was
Balance Sheet
At December 31, 2020, cash and cash equivalents totaled
Common Stock Dividend
During the fourth quarter of 2020, the Company declared and paid a common stock cash dividend of
On February 10, 2021, 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 net revenue growth, adjusted EBITA, adjusted EBITA before restructuring charges and adjusted earnings per diluted share, and the reconciliations thereof, please refer to pages 11 to 15 and our Investor Presentation filed on Form 8-K herewith and available on our website, www.interpublic.com.
# # #
About Interpublic
Interpublic is values-based, data-fueled, and creatively-driven. Major global brands include Acxiom, Craft, FCB (Foote, Cone & Belding), FutureBrand, Golin, Huge, Initiative, Jack Morton, Kinesso, MAGNA, Matterkind, McCann, Mediahub, Momentum, MRM, MullenLowe Group, Octagon, R/GA, UM and Weber Shandwick. Other leading brands include Avrett Free Ginsberg, Campbell Ewald, Carmichael Lynch, Deutsch, Hill Holliday, ID Media and The Martin Agency. For more information, please visit www.interpublic.com.
# # #
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 release that are not historical facts, including statements about management's beliefs and expectations, constitute forward-looking statements. These statements are based on current plans, estimates and projections, 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;
- the impacts of the novel coronavirus (COVID-19) pandemic and the measures to contain its spread, including social distancing efforts and restrictions on businesses, social activities and travel, any failure to realize anticipated benefits from the rollout of COVID-19 vaccination campaigns and the resulting impact on the economy, our clients and demand for our services, which may precipitate or exacerbate other risks and uncertainties;
- our ability to attract new clients and retain existing clients;
- our ability to retain and attract key employees;
- risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a weakened economy;
- potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments;
- risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in economic growth rates, interest rates and currency exchange rates;
- developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world, including laws and regulations related to data protection and consumer privacy; and
- failure to fully realize the anticipated benefits of our 2020 restructuring actions and other cost-saving initiatives.
Investors should carefully consider these factors and the additional risk factors outlined in more detail under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, and our other SEC filings.
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS FOURTH QUARTER REPORT 2020 AND 2019 (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||
| Three Months Ended December 31, | |||||||||||
| 2020 | 2019 | Fav. (Unfav.) % Variance | |||||||||
| Revenue: | |||||||||||
| Net Revenue | $ | 2,284.4 | $ | 2,433.0 | (6.1) | % | |||||
| Billable Expenses | 265.6 | 468.8 | (43.3) | % | |||||||
| Total Revenue | 2,550.0 | 2,901.8 | (12.1) | % | |||||||
| Operating Expenses: | |||||||||||
| Salaries and Related Expenses | 1,346.2 | 1,432.1 | 6.0 | % | |||||||
| Office and Other Direct Expenses | 364.8 | 419.7 | 13.1 | % | |||||||
| Billable Expenses | 265.6 | 468.8 | 43.3 | % | |||||||
| Cost of Services | 1,976.6 | 2,320.6 | 14.8 | % | |||||||
| Selling, General and Administrative Expenses | 22.4 | 24.5 | 8.6 | % | |||||||
| Depreciation and Amortization | 73.7 | 65.4 | (12.7) | % | |||||||
| Restructuring Charges | 253.9 | 0.0 | >(100)% | ||||||||
| Total Operating Expenses | 2,326.6 | 2,410.5 | 3.5 | % | |||||||
| Operating Income | 223.4 | 491.3 | (54.5) | % | |||||||
| Expenses and Other Income: | |||||||||||
| Interest Expense | (46.8) | (48.2) | |||||||||
| Interest Income | 6.8 | 9.5 | |||||||||
| Other Expense, Net | (9.8) | (24.8) | |||||||||
| Total (Expenses) and Other Income | (49.8) | (63.5) | |||||||||
| Income Before Income Taxes | 173.6 | 427.8 | |||||||||
| Provision for Income Taxes | 58.1 | 86.1 | |||||||||
| Income of Consolidated Companies | 115.5 | 341.7 | |||||||||
| Equity in Net Income of Unconsolidated Affiliates | 1.5 | 0.5 | |||||||||
| Net Income | 117.0 | 342.2 | |||||||||
| Net Income Attributable to Noncontrolling Interests | (4.7) | (13.3) | |||||||||
| Net Income Available to IPG Common Stockholders | $ | 112.3 | $ | 328.9 | |||||||
| Earnings Per Share Available to IPG Common Stockholders: | |||||||||||
| Basic | $ | 0.29 | $ | 0.85 | |||||||
| Diluted | $ | 0.28 | $ | 0.84 | |||||||
| Weighted-Average Number of Common Shares Outstanding: | |||||||||||
| Basic | 390.5 | 386.9 | |||||||||
| Diluted | 396.1 | 393.3 | |||||||||
| Dividends Declared Per Common Share | $ | 0.255 | $ | 0.235 | |||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS ANNUAL REPORT 2020 AND 2019 (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||
| Twelve Months Ended December 31, | |||||||||||
| 2020 | 2019 | Fav. (Unfav.) % Variance | |||||||||
| Revenue: | |||||||||||
| Net Revenue | $ | 8,064.5 | $ | 8,625.1 | (6.5) | % | |||||
| Billable Expenses | 996.5 | 1,596.2 | (37.6) | % | |||||||
| Total Revenue | 9,061.0 | 10,221.3 | (11.4) | % | |||||||
| Operating Expenses: | |||||||||||
| Salaries and Related Expenses | 5,345.0 | 5,568.8 | 4.0 | % | |||||||
| Office and Other Direct Expenses | 1,367.9 | 1,564.1 | 12.5 | % | |||||||
| Billable Expenses | 996.5 | 1,596.2 | 37.6 | % | |||||||
| Cost of Services | 7,709.4 | 8,729.1 | 11.7 | % | |||||||
| Selling, General and Administrative Expenses | 58.8 | 93.8 | 37.3 | % | |||||||
| Depreciation and Amortization | 290.6 | 278.5 | (4.3) | % | |||||||
| Restructuring Charges | 413.8 | 33.9 | >(100)% | ||||||||
| Total Operating Expenses | 8,472.6 | 9,135.3 | 7.3 | % | |||||||
| Operating Income | 588.4 | 1,086.0 | (45.8) | % | |||||||
| Expenses and Other Income: | |||||||||||
| Interest Expense | (192.2) | (199.3) | |||||||||
| Interest Income | 29.5 | 34.5 | |||||||||
| Other Expense, Net | (64.4) | (42.9) | |||||||||
| Total (Expenses) and Other Income | (227.1) | (207.7) | |||||||||
| Income Before Income Taxes | 361.3 | 878.3 | |||||||||
| Provision for Income Taxes | 8.0 | 204.8 | |||||||||
| Income of Consolidated Companies | 353.3 | 673.5 | |||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.9 | 0.4 | |||||||||
| Net Income | 354.2 | 673.9 | |||||||||
| Net Income Attributable to Noncontrolling Interests | (3.1) | (17.9) | |||||||||
| Net Income Attributable to IPG Common Stockholders | $ | 351.1 | $ | 656.0 | |||||||
| Earnings Per Share Available to IPG Common Stockholders: | |||||||||||
| Basic | $ | 0.90 | $ | 1.70 | |||||||
| Diluted | $ | 0.89 | $ | 1.68 | |||||||
| Weighted-Average Number of Common Shares Outstanding: | |||||||||||
| Basic | 389.4 | 386.1 | |||||||||
| Diluted | 393.2 | 391.2 | |||||||||
| Dividends Declared Per Common Share | $ | 1.020 | $ | 0.940 | |||||||
| 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, 2020 | |||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Losses on Sales of Businesses 1 | Adjusted Results (Non-GAAP) | |||||||||||||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | $ | 223.4 | $ | (21.5) | $ | (253.9) | $ | 498.8 | |||||||||||
| Total (Expenses) and Other Income 3 | (49.8) | $ | (15.2) | (34.6) | |||||||||||||||
| Income Before Income Taxes | 173.6 | (21.5) | (253.9) | (15.2) | 464.2 | ||||||||||||||
| Provision for Income Taxes | 58.1 | 4.2 | 56.9 | 2.0 | 121.2 | ||||||||||||||
| Effective Tax Rate | 33.5 | % | 26.1 | % | |||||||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 1.5 | 1.5 | |||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (4.7) | (4.7) | |||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 112.3 | $ | (17.3) | $ | (197.0) | $ | (13.2) | $ | 339.8 | |||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 390.5 | 390.5 | |||||||||||||||||
| Dilutive effect of stock options and restricted shares | 5.6 | 5.6 | |||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 396.1 | 396.1 | |||||||||||||||||
| Earnings Per Share Available to IPG Common Stockholders 4: | |||||||||||||||||||
| Basic | $ | 0.29 | $ | (0.04) | $ | (0.50) | $ | (0.03) | $ | 0.87 | |||||||||
| Diluted | $ | 0.28 | $ | (0.04) | $ | (0.50) | $ | (0.03) | $ | 0.86 | |||||||||
| 1 Includes 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 13. | |||||||||||||||||||
| 3 Consists of non-operating expenses including interest expense, net and other expense, net. | |||||||||||||||||||
| 4 Earnings per share may not add due to rounding. | |||||||||||||||||||
| 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, 2020 | |||||||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Losses on Sales of Businesses 1 | Net Impact of Various Discrete Tax Items 2 | Adjusted Results (Non-GAAP) | ||||||||||||||||||
| Operating Income and Adjusted EBITA before Restructuring Charges 3 | $ | 588.4 | $ | (85.9) | $ | (413.8) | $ | 1,088.1 | |||||||||||||||
| Total (Expenses) and Other Income 4 | (227.1) | $ | (67.0) | (160.1) | |||||||||||||||||||
| Income Before Income Taxes | 361.3 | (85.9) | (413.8) | (67.0) | 928.0 | ||||||||||||||||||
| Provision for Income Taxes | 8.0 | 16.9 | 93.1 | 5.0 | $ | 122.6 | 245.6 | ||||||||||||||||
| Effective Tax Rate | 2.2 | % | 26.5 | % | |||||||||||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.9 | 0.9 | |||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (3.1) | (3.1) | |||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 351.1 | $ | (69.0) | $ | (320.7) | $ | (62.0) | $ | 122.6 | $ | 680.2 | |||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 389.4 | 389.4 | |||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 3.8 | 3.8 | |||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 393.2 | 393.2 | |||||||||||||||||||||
| Earnings Per Share Available to IPG Common Stockholders 5: | |||||||||||||||||||||||
| Basic | $ | 0.90 | $ | (0.18) | $ | (0.82) | $ | (0.16) | $ | 0.31 | $ | 1.75 | |||||||||||
| Diluted | $ | 0.89 | $ | (0.18) | $ | (0.82) | $ | (0.16) | $ | 0.31 | $ | 1.73 | |||||||||||
| 1 Includes losses on complete dispositions of businesses and the classification of certain assets as held for sale. | |||||||||||||||||||||||
| 2 Includes a tax benefit of | |||||||||||||||||||||||
| 3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page 13. | |||||||||||||||||||||||
| 4 Consists of non-operating expenses including interest expense, net and other expense, net. | |||||||||||||||||||||||
| 5 Earnings per share may not add due to rounding. | |||||||||||||||||||||||
| 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, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net Revenue | $ | 2,284.4 | $ | 2,433.0 | $ | 8,064.5 | $ | 8,625.1 | |||||||
| Non-GAAP Reconciliation: | |||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 112.3 | $ | 328.9 | $ | 351.1 | $ | 656.0 | |||||||
| Add Back: | |||||||||||||||
| Provision for Income Taxes | 58.1 | 86.1 | 8.0 | 204.8 | |||||||||||
| Subtract: | |||||||||||||||
| Total (Expenses) and Other Income | (49.8) | (63.5) | (227.1) | (207.7) | |||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 1.5 | 0.5 | 0.9 | 0.4 | |||||||||||
| Net Income Attributable to Noncontrolling Interests | (4.7) | (13.3) | (3.1) | (17.9) | |||||||||||
| Operating Income | 223.4 | 491.3 | 588.4 | 1,086.0 | |||||||||||
| Add Back: | |||||||||||||||
| Amortization of Acquired Intangibles | 21.5 | 21.4 | 85.9 | 86.0 | |||||||||||
| Adjusted EBITA | 244.9 | 512.7 | 674.3 | 1,172.0 | |||||||||||
| Adjusted EBITA Margin on Net Revenue % | 10.7 | % | 21.1 | % | 8.4 | % | 13.6 | % | |||||||
| Restructuring Charges 1 | 253.9 | N/A | 413.8 | 31.8 | |||||||||||
| Adjusted EBITA before Restructuring Charges | $ | 498.8 | N/A | $ | 1,088.1 | $ | 1,203.8 | ||||||||
| Adjusted EBITA before Restructuring Charges Margin on Net Revenue % | 21.8 | % | N/A | 13.5 | % | 14.0 | % | ||||||||
| 1 In the second, third and fourth quarters of 2020, the Company took restructuring actions to lower our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business. The adjustment 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) | |||||||||||||||||||
| Three Months Ended December 31, 2019 | |||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Net Losses on Sales of Businesses 1 | Tax Valuation Allowance Reversals | Adjusted Results (Non-GAAP) | |||||||||||||||
| Operating Income and Adjusted EBITA 2 | $ | 491.3 | $ | (21.4) | $ | 512.7 | |||||||||||||
| Total (Expenses) and Other Income 3 | (63.5) | $ | (24.0) | (39.5) | |||||||||||||||
| Income Before Income Taxes | 427.8 | (21.4) | (24.0) | 473.2 | |||||||||||||||
| Provision for Income Taxes | 86.1 | 4.2 | 0.4 | $ | 25.3 | 116.0 | |||||||||||||
| Effective Tax Rate | 20.1 | % | 24.5 | % | |||||||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.5 | 0.5 | |||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (13.3) | (13.3) | |||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 328.9 | $ | (17.2) | $ | (23.6) | $ | 25.3 | $ | 344.4 | |||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 386.9 | 386.9 | |||||||||||||||||
| Dilutive effect of stock options and restricted shares | 6.4 | 6.4 | |||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 393.3 | 393.3 | |||||||||||||||||
| Earnings Per Share Available to IPG Common Stockholders 4: | |||||||||||||||||||
| Basic | $ | 0.85 | $ | (0.04) | $ | (0.06) | $ | 0.07 | $ | 0.89 | |||||||||
| Diluted | $ | 0.84 | $ | (0.04) | $ | (0.06) | $ | 0.06 | $ | 0.88 | |||||||||
| 1 Includes 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 on page 13. | |||||||||||||||||||
| 3 Consists of non-operating expenses including interest expense, net and other expense, net. | |||||||||||||||||||
| 4 Earnings per share may not add due to rounding. | |||||||||||||||||||
| 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, 2019 | |||||||||||||||||||||||
| As Reported | Amortization of Acquired Intangibles | Q1 2019 Restructuring Charges | Net Losses on Sales of Businesses 1 | Net Impact of Various Discrete Tax Items 2 | Adjusted Results (Non-GAAP) | ||||||||||||||||||
| Operating Income and Adjusted EBITA before Restructuring Charges 3 | $ | 1,086.0 | $ | (86.0) | $ | (31.8) | $ | 1,203.8 | |||||||||||||||
| Total (Expenses) and Other Income 4 | (207.7) | $ | (46.3) | (161.4) | |||||||||||||||||||
| Income Before Income Taxes | 878.3 | (86.0) | (31.8) | (46.3) | 1,042.4 | ||||||||||||||||||
| Provision for Income Taxes | 204.8 | 16.9 | 7.6 | 0.4 | $ | 39.2 | 268.9 | ||||||||||||||||
| Effective Tax Rate | 23.3 | % | 25.8 | % | |||||||||||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.4 | 0.4 | |||||||||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (17.9) | (17.9) | |||||||||||||||||||||
| Net Income Available to IPG Common Stockholders | $ | 656.0 | $ | (69.1) | $ | (24.2) | $ | (45.9) | $ | 39.2 | $ | 756.0 | |||||||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 386.1 | 386.1 | |||||||||||||||||||||
| Dilutive effect of stock options and restricted shares | 5.1 | 5.1 | |||||||||||||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 391.2 | 391.2 | |||||||||||||||||||||
| Earnings Per Share Available to IPG Common Stockholders 5: | |||||||||||||||||||||||
| Basic | $ | 1.70 | $ | (0.18) | $ | (0.06) | $ | (0.12) | $ | 0.10 | $ | 1.96 | |||||||||||
| Diluted | $ | 1.68 | $ | (0.18) | $ | (0.06) | $ | (0.12) | $ | 0.10 | $ | 1.93 | |||||||||||
| 1 Includes losses on complete dispositions of businesses and the classification of certain assets as held for sale. | |||||||||||||||||||||||
| 2 Includes | |||||||||||||||||||||||
| 3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page 13. | |||||||||||||||||||||||
| 4 Consists of non-operating expenses including interest expense, net and other expense, net. | |||||||||||||||||||||||
| 5 Earnings per share may not add due to rounding. | |||||||||||||||||||||||
| 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 fourth quarter revenue for 2021?
How much did IPG's revenue decrease in the fourth quarter?
What was the diluted earnings per share for IPG?
What is the adjusted EBITA for IPG in the full year?
How much did IPG increase its quarterly dividend by?
