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SEC Filings

8-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 10/24/2017
Entire Document
 


Operating Results
Operating income in the third quarter of 2017 was $219.1 million, compared to $208.0 million in 2016. Operating margin was 11.5% for the third quarter of 2017, compared to 10.8% in 2016.
For the first nine months of 2017, operating income of $455.3 million and operating margin of 8.2% remained constant compared to the same period in 2016.

Net Results
Income tax provision in the third quarter of 2017 was $42.5 million on income before income taxes of $192.3 million.
Third quarter 2017 net income available to IPG common stockholders was $146.2 million, resulting in earnings of $0.38 per basic share and $0.37 per diluted share, and $0.31 per adjusted diluted share. This compares to net income available to IPG common stockholders a year ago of $128.6 million, resulting in earnings of $0.32 per basic share and diluted share, and $0.31 per adjusted diluted share.
Income tax provision in the first nine months of 2017 was $115.8 million on income before income taxes of $377.2 million.
First nine months 2017 net income available to IPG common stockholders was $262.4 million, resulting in earnings of $0.67 per basic share and $0.66 per diluted share, and $0.63 per adjusted diluted share. This compares to net income available to IPG common stockholders a year ago of $290.9 million, resulting in earnings of $0.73 per basic share and $0.71 per diluted share, and $0.66 per adjusted diluted share.
For the three and nine months ended September 30, 2017, net income available to IPG common stockholders included $31.2 million related to foreign tax credits from distributions of unremitted earnings and pre-tax net losses of $8.7 million and $20.9 million, respectively, on sales of businesses in "Other (expense) income, net". Excluding these items, our diluted earnings per share for the three and nine months ended September 30, 2017 would have been $0.31 and $0.63, respectively. Adjusted diluted earnings per share was $0.31 and $0.66 in the respective prior-year periods. Refer to reconciliations in the back for more detail.

"Results in the quarter reflect strong operating margin expansion, although organic revenue was negatively impacted by broader trends that are being felt throughout much of the industry. Our agencies and our talent across the portfolio remain among the best in their respective disciplines, which gives us confidence in the long-term competitiveness of our offerings, and our client-centric service model," said Michael I. Roth, Interpublic's Chairman and CEO. "Domestic performance in the quarter also demonstrates that the business is fundamentally sound in our largest geographic market. That said, client caution and the macro environment require that we adjust our outlook for this year, to margin expansion of 40 basis points, with one to two percent organic revenue growth. Combined with the strength of our balance sheet and our proven commitment to capital returns, delivering on these targets will allow us to enhance shareholder value," concluded Michael Roth.

Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax