Interpublic Announces First Quarter 2009 Results
-
Revenue
-
First quarter 2009 revenue of
$1.33 billion , compared to$1.49 billion the same period a year ago. - Organic revenue decrease of 5.6% compared to the first quarter of 2008.
-
First quarter 2009 revenue of
-
Operating Results
-
Operating loss in the first quarter of 2009 was
$81.9 million , including severance charges of$41.6 million , compared to an operating loss of$57.8 million in the first quarter of 2008, which included severance charges of$13.9 million . -
Operating margin was (6.2%) for the three months ended
March 31, 2009 compared to (3.9%) for the three months endedMarch 31, 2008 .
-
Operating loss in the first quarter of 2009 was
-
Net Results
-
First quarter 2009 net loss attributable to IPG was
$67.0 million and net loss available to IPG common stockholders was$73.9 million , or($0.16) per basic and diluted share. This compares to a net loss attributable to IPG a year ago of$62.8 million and net loss available to IPG common stockholders of$69.7 million , or($0.15) per basic and diluted share.
-
First quarter 2009 net loss attributable to IPG was
“To date this year, we’ve continued to see the significant effect that
the global recession is having on demand for marketing services. As was
the case in the fourth quarter, we demonstrated the appropriate cost
discipline and successfully managed margins,” said
Operating Results
Revenue
Reported revenue of
Operating Expenses
During the first quarter of 2009, reported salaries and related expenses
were
During the first quarter of 2009, reported office and general expenses
were
Non-Operating and Tax
Net cash interest expense of
Other income was
The income tax benefit in the first quarter of 2009 was
Balance Sheet
At
About Interpublic
Interpublic is one of the world's leading organizations of advertising
agencies and marketing services companies. Major global brands include
Draftfcb, FutureBrand,
Cautionary Statement
This release contains forward-looking statements and when used in this discussion and the financial statements, the words “expect(s)”, “will”, “may”, “could”, and similar expressions are intended to identify 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. 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:
- potential effects of a weakening economy, for example, 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 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; and
- developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world.
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED SUMMARY OF EARNINGS | ||||||||||
FIRST QUARTER REPORT 2009 AND 2008 | ||||||||||
(Amounts in Millions except Per Share Data) | ||||||||||
(UNAUDITED) | ||||||||||
Three Months Ended March 31, | ||||||||||
2009 | 2008 |
Fav. (Unfav.)
% Variance |
||||||||
Revenue: | ||||||||||
United States | $ | 781.4 | $ | 849.1 | (8.0)% | |||||
International | 543.9 | 636.1 | (14.5)% | |||||||
Total Revenue | 1,325.3 | 1,485.2 | (10.8)% | |||||||
Operating Expenses: | ||||||||||
Salaries and Related Expenses | 996.5 | 1,064.8 | 6.4% | |||||||
Office and General Expenses | 410.9 | 475.0 | 13.5% | |||||||
Restructuring and Other Reorganization-Related (Reversals) Charges | (0.2) | 3.2 | N/A | |||||||
Total Operating Expenses | 1,407.2 | 1,543.0 | 8.8% | |||||||
Operating Loss | (81.9) | (57.8) | (41.7)% | |||||||
Operating Margin % | (6.2% | ) | (3.9%) | |||||||
Expenses and Other Income: | ||||||||||
Interest Expense | (34.8) | (57.7) | ||||||||
Interest Income | 12.3 | 28.7 | ||||||||
Other Income (Expense), Net | 4.9 | (1.4) | ||||||||
Total (Expenses) and Other Income | (17.6) | (30.4) | ||||||||
Loss before Income Taxes | (99.5) | (88.2) | ||||||||
Benefit of Income Taxes | (25.4) | (23.7) | ||||||||
Loss of Consolidated Companies | (74.1) | (64.5) | ||||||||
Equity in Net Income of Unconsolidated Affiliates | 0.5 | 1.1 | ||||||||
Net Loss | (73.6) | (63.4) | ||||||||
Net Loss Attributable to Noncontrolling Interests 1 | 6.6 | 0.6 | ||||||||
Net Loss Attributable to IPG 1 | (67.0) | (62.8) | ||||||||
Dividends on Preferred Stock | (6.9) | (6.9) | ||||||||
Net Loss Available to IPG Common Stockholders 1 | $ | (73.9) | $ | (69.7) | ||||||
Loss Per Share Available to IPG Common Stockholders – Basic and Diluted | $ | (0.16) | $ | (0.15) | ||||||
Weighted Average Number of Common Shares Outstanding – Basic and Diluted | 464.0 | 459.2 |
1 | Effective January 1, 2009, we adopted SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements. Prior year | |
amounts have been reclassified to conform to current period presentation. |
Source: Interpublic
Interpublic
Philippe Krakowsky, 212-704-1328
or
Jerry
Leshne, 212-704-1439
(Analysts, Investors)