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Last updated on April 23, 2014 at 19:54 EDT

Omnicom Reports Fourth Quarter 2012 Results

February 12, 2013

NEW YORK, Feb. 12, 2013 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share in the fourth quarter of 2012 increased 17.7% to $1.13 per share from $0.96 per share in the fourth quarter of 2011. Omnicom’s net income for the fourth quarter of 2012 increased 12.9% to $307.1 million from $271.9 million in the fourth quarter of 2011.

Worldwide revenue increased 2.4% to $3,944.5 million from $3,852.9 million in the fourth quarter of 2011. Domestic revenue for the fourth quarter of 2012 increased 5.1% to $2,026.6 million compared to $1,928.7 million in the fourth quarter of 2011. International revenue decreased 0.3% to $1,917.9 million compared to $1,924.2 million in the fourth quarter of 2011.

Omnicom’s diluted net income per common share for the twelve months ended December 31, 2012 increased 8.4% to $3.61 per share in 2012 from $3.33 per share in the same period in 2011. Omnicom’s net income for the twelve months ended December 31, 2012 increased 4.8% to $998.3 million from $952.6 million in the same period in 2011.

Worldwide revenue for the twelve months ended December 31, 2012 increased 2.5% to $14,219.4 million from $13,872.5 million in the same period in 2011. Domestic revenue for the twelve months ended December 31, 2012 increased 4.5% to $7,363.7 million from $7,048.7 million in the same period in 2011. International revenue for the twelve months ended December 31, 2012 increased 0.5% to $6,855.7 million from $6,823.8 million in the same period in 2011.

Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

For a live webcast and/or a replay of our fourth quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

    Omnicom Group Inc.
    (Unaudited)
    (Dollars in Millions, Except Per Share Data)

    Three Months Ended December 31,                                                                                                                                2012      2011
    -------------------------------                                                                                                                                ----      ----

    Revenue                                                                                                                                                    $3,944.5  $3,852.9

    Operating expenses, excluding amortization of intangibles                                                                                                   3,370.6   3,341.8
                                                                                                                                                                -------   -------

    Earnings before interest, taxes and
                amortization of intangibles (a)                                                                                                                   573.9     511.1

    Amortization of intangibles                                                                                                                                    25.9      23.7
                                                                                                                                                                   ----      ----

    Operating income                                                                                                                                              548.0     487.4

    Net interest expense                                                                                                                                           40.3      30.3
                                                                                                                                                                   ----      ----

    Income before income taxes                                                                                                                                    507.7     457.1

    Income tax expense                                                                                                                                            137.3     156.8

    (Loss) / income from equity method investments                                                                                                                (26.8)      6.9
                                                                                                                                                                  -----       ---

    Net Income                                                                                                                                                    343.6     307.2

    Less: Net income attributed to noncontrolling interests                                                                                                        36.5      35.3
                                                                                                                                                                   ----      ----

    Net Income  -  Omnicom Group Inc.                                                                                                                             307.1     271.9

    Less: Net income allocated to participating securities                                                                                                          7.2       3.5
                                                                                                                                                                    ---       ---

    Net income available for common shares                                                                                                                       $299.9    $268.4
                                                                                                                                                                 ======    ======

    Net income per common share  -  Omnicom Group Inc.
          Basic                                                                                                                                                   $1.13     $0.97
          Diluted                                                                                                                                                 $1.13     $0.96

    Weighted average shares (in millions)
          Basic                                                                                                                                                   264.3     276.4
          Diluted                                                                                                                                                 266.0     280.8

    Dividend declared per common share                                                                                                                            $0.30     $0.25

    (a)     Earnings before interest, taxes and amortization of intangibles ("EBITA") is a Non-GAAP measure. We use EBITA as an additional operating
     performance measure, which excludes the non-cash amortization expense of acquired intangible assets. We believe that EBITA is a useful measure to
     evaluate the performance of our businesses. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial
     information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported
     by other companies.

    Omnicom Group Inc.
    (Unaudited)
    (Dollars in Millions, Except Per Share Data)

    Twelve Months Ended December 31,                                                                                                       2012         2011
    --------------------------------                                                                                                       ----         ----

    Revenue                                                                                                                           $14,219.4    $13,872.5

    Operating expenses, excluding amortization of intangibles                                                                          12,314.1     12,110.0
                                                                                                                                       --------     --------

    Earnings before interest, taxes and
                amortization of intangibles (a)                                                                                         1,905.3      1,762.5

    Amortization of intangibles                                                                                                           101.1         91.4
                                                                                                                                          -----         ----

    Operating income                                                                                                                    1,804.2      1,671.1

    Net interest expense                                                                                                                  144.6        122.1
                                                                                                                                          -----        -----

    Income before income taxes                                                                                                          1,659.6      1,549.0

    Income tax expense                                                                                                                    527.1        505.8

    (Loss) / income from equity method investments                                                                                        (15.0)        17.2
                                                                                                                                          -----         ----

    Net Income                                                                                                                          1,117.5      1,060.4

    Less: Net income attributed to noncontrolling interests                                                                               119.2        107.8
                                                                                                                                          -----        -----

    Net Income  -  Omnicom Group Inc.                                                                                                     998.3        952.6

    Less: Net income allocated to participating securities                                                                                 22.5         10.7
                                                                                                                                           ----         ----

    Net income available for common shares                                                                                               $975.8       $941.9
                                                                                                                                         ======       ======

    Net income per common share  -  Omnicom Group Inc.
          Basic                                                                                                                           $3.64        $3.38
          Diluted                                                                                                                         $3.61        $3.33

    Weighted average shares (in millions)
          Basic                                                                                                                           268.3        279.0
          Diluted                                                                                                                         270.0        283.3

    Dividend declared per common share                                                                                                    $1.20        $1.00

    (a) Earnings before interest, taxes and amortization of intangibles ("EBITA") is a Non-GAAP measure. We use EBITA as an additional operating performance measure, which
     excludes the non-cash amortization expense of acquired intangible assets. We believe that EBITA is a useful measure to evaluate the performance of our businesses. Non-
     GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with U.S. GAAP. Non-GAAP
     financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

SOURCE Omnicom Group Inc.


Source: PR Newswire