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OMC · Omnicom Group

31 filings

10-K

OMC 10-K Annual Reports

Omnicom Group - 31 annual reports

Filing record · 2016–202610-K1110-Q338-K107

2025
Omnicom Group Annual Report, Year Ended Dec 31, 2025
Omnicom Group Inc. (NYSE: OMC) reported its 2025 annual results in a Form 10-K filed February 20, 2026, a year dominated by its merger with The Interpublic Group of Companies, Inc. (IPG), which closed November 26, 2025. Each IPG share converted into 0.344 Omnicom shares, issuing 124,352,188 shares; legacy Omnicom shareholders now own approximately 60.6% of the combined company and legacy IPG shareholders approximately 39.4%, on a fully diluted basis. Because IPG was included only from the Closing Date, results are not comparable to prior periods. Revenue rose 10.1% to $17.27 billion from $15.69 billion, with constant currency growth of 9.3%, while the company reported a net loss attributed to Omnicom of $54.5 million, or $(0.27) per diluted share, versus net income of $1.48 billion in 2024. The loss was driven by $1,247.0 million of severance and repositioning costs, $547.1 million of losses on assets held for sale and dispositions tied to the Merger, and $347.3 million of acquisition-related SG&A costs. Together these reduced operating income by $2,141.4 million. Operating income fell to $444.7 million (2.6% margin) from $2,274.6 million (14.5%), and EBITA, a non-GAAP measure, fell to $560.5 million (3.2% margin). The company's effective tax rate rose to 87.1%. Operating cash flow was $2.94 billion, cash and equivalents rose to $6.88 billion, and net debt increased to $2.24 billion from $1.72 billion. After year-end, in February 2026, the Board authorized repurchases of up to $5.0 billion of common stock and entered into an accelerated share repurchase program of approximately $2.5 billion. The Board also approved a quarterly dividend increase to $0.80 per share in the fourth quarter, for $2.90 per share for 2025. The filing states that planned 2026 dispositions involve businesses with approximately $3.2 billion of prior-year revenue, and that net interest expense is expected to rise by $210 million.
Feb 20, 2026
2024
Omnicom Group Annual Report, Year Ended Dec 31, 2024
Omnicom Group Inc. reported worldwide revenue of $15.69 billion for 2024, up $996.9 million, or 6.8%, from $14.69 billion in 2023, with organic growth of $768.7 million, or 5.2%. Operating income rose $169.9 million, or 8.1%, to $2.27 billion, and operating margin improved to 14.5% from 14.3%. Net income attributable to Omnicom was $1.48 billion, or $7.46 per diluted share, compared with $6.91 in 2023. EBITA, a non-GAAP measure the company now defines as earnings before interest, taxes and amortization of acquired intangibles and internally developed strategic platform assets, grew to $2.36 billion. The dominant event in the filing is the pending merger with The Interpublic Group of Companies (IPG), agreed December 8, 2024. IPG shareholders would receive 0.344 Omnicom shares for each IPG share, leaving Omnicom holders with about 60.6% and IPG holders with about 39.4% of the combined company on a fully diluted basis. Completion requires regulatory approvals and stockholder approvals from both companies. Omnicom would owe IPG a $676 million termination fee in specified circumstances, and the company recorded $14.6 million of merger transaction costs in the fourth quarter. The merger is expected to have a material impact on the business if completed. Liquidity remained solid: net cash from operating activities was $1.73 billion, cash and cash equivalents were $4.34 billion, and net debt rose to $1.72 billion. Long-term debt was $6.1 billion gross, the Leverage Ratio was 2.4 times against a 3.5 times covenant limit, and senior debt was rated BBB+ by S&P and Baa1 by Moody's. During 2024 the company issued a euro 600 million 3.70% note due 2032 and a $600 million 5.30% note due 2034, and it repaid $750 million of 3.65% notes. Dividends declared totaled $2.80 per share.
Feb 5, 2025
2023
Omnicom Group Annual Report, Year Ended Dec 31, 2023
Omnicom Group Inc. reported 2023 revenue of $14,692.2 million, up from $14,289.1 million in 2022, with worldwide organic growth adding $584.5 million (4.1%). Operating income rose $21.4 million to $2,104.7 million, though operating margin declined to 14.3% from 14.6%. Net income attributable to Omnicom was $1,391.4 million, or $6.91 per diluted share, versus $6.36 in 2022. Results were affected by $191.5 million of real estate and other repositioning costs, a $78.8 million gain on the disposition of research businesses, and $14.5 million of acquisition transaction costs; net of these items, operating income was reduced by $127.2 million. Advertising & Media remained the largest discipline at $7,891.2 million, or 53.7% of revenue, while Execution & Support declined $189.1 million following dispositions. Operating cash flow was $1,421.9 million, and cash and cash equivalents ended the year at $4,432.0 million. Net debt was $1,218.5 million, and the company stated it was in compliance with its Credit Facility leverage covenant at 2.3 times against a 3.5 times maximum. Looking ahead, the company acquired Flywheel Digital on January 2, 2024 for a net cash purchase price of approximately $845 million, and entered into a $600 million Delayed Draw Term Loan Agreement on January 3, 2024. The filing states it expects net interest expense to increase in 2024 and its tax rate to rise to 27%. Net revenue impact from foreign exchange and acquisitions/dispositions is expected to add 2.0% to revenue for the full year 2024.
Feb 7, 2024
2022
Omnicom Group Annual Report, Year Ended Dec 31, 2022
Omnicom Group Inc. (NYSE: OMC) reported 2022 revenue of $14,289.1 million, essentially flat compared with $14,289.4 million in 2021. Organic growth added $1,346.3 million, or 9.4%, while foreign exchange reduced revenue by $681.0 million, or 4.8%, and net acquisition/disposition effects reduced revenue by $665.6 million, or 4.7%. Operating profit fell $114.6 million to $2,083.3 million, with operating margin declining to 14.6% from 15.4%. The decline was driven primarily by $113.4 million in pretax charges tied to the war in Ukraine, which resulted from the disposal of all Russian businesses and suspension of Ukrainian operations. Net income attributable to Omnicom Group Inc. decreased $91.3 million to $1,316.5 million, and diluted EPS was $6.36 versus $6.53 in 2021. Cash flow from operations declined to $926.5 million from $1,945.4 million, mainly due to a $844.0 million reduction in operating capital. Cash and cash equivalents fell to $4,281.8 million, and net debt rose to $1,251.6 million from $378.5 million. Shareholders returned capital through $581.1 million in common dividends and $611.4 million in share repurchases. Long-term debt stood at $5,577.2 million, and the company reported a Leverage Ratio of 2.4 times against a covenant maximum of 3.5 times. Management stated that cash, short-term investments and operating cash flow are sufficient to meet non-discretionary requirements for the next twelve months. The company expects its effective tax rate to rise to approximately 27% in 2023, primarily due to the UK tax rate increasing from 19% to 25% in April 2023. Management also expects foreign exchange to reduce first-quarter 2023 revenue by approximately 3.0% and to be flat for the full year, assuming exchange rates at February 3, 2023 remain unchanged.
Feb 8, 2023
2021
Omnicom Group Annual Report, Year Ended Dec 31, 2021
Omnicom Group Inc. (NYSE: OMC) reported 2021 revenue of $14,289.4 million, up $1,118.3 million, or 8.5%, from $13,171.1 million in 2020. Management attributed the increase to organic growth of 10.2% and a 2.2% favorable foreign exchange impact, partially offset by a 3.9% reduction from acquisitions net of dispositions, primarily the sale of ICON International in the second quarter of 2021. Operating profit rose $599.1 million to $2,197.9 million, with operating margin of 15.4% versus 12.1% in 2020 and EBITA margin of 15.9% versus 12.8%. Net income attributed to Omnicom was $1,407.8 million, or $6.53 per diluted share, compared with $945.4 million, or $4.37 per diluted share, in 2020. The prior year included $277.9 million of COVID-19 repositioning costs, partly offset by $162.6 million of government pandemic relief reimbursements. For 2022, the company expects organic revenue growth of 5% to 6%, an approximately 1.5% reduction in revenue from foreign exchange at current rates, a 3.0% to 3.5% reduction from net acquisition and disposition activity, and an effective tax rate of 26.5% to 27%. Management expects to maintain its 2021 operating margins for the full year. Liquidity remained solid, with cash and cash equivalents of $5,316.8 million, total debt of $5,695.3 million, and a Credit Facility leverage ratio of 2.3 times against a covenant maximum of 4.0 times. Dividends declared were $2.80 per share in 2021, up from $2.60, and the company repurchased $527.3 million of common stock during the year. The filing highlights risk factors including client concentration (the 100 largest clients represented approximately 54% of revenue, and the largest client 3.2%), exposure to economic downturns and media payment default risk, international operations (about 49% of revenue), and cybersecurity, including a February 2021 incident that the company stated was not material.
Feb 9, 2022
2020
Omnicom Group Annual Report, Year Ended Dec 31, 2020
Omnicom Group Inc. reported a sharp decline in 2020 as the COVID-19 pandemic reduced client spending. Revenue fell $1,782.6 million, or 11.9%, to $13,171.1 million, with organic growth decreasing revenue by 11.1%. Operating profit declined $523.5 million to $1,598.8 million, and operating margin fell to 12.1% from 14.2%. Net income attributable to Omnicom decreased $393.7 million to $945.4 million, and diluted net income per share was $4.37, compared with $6.06 in 2019. The company recorded COVID-19 repositioning costs of $277.9 million in the second quarter and asset impairment charges of $55.8 million in the fourth quarter, partly offset by $162.6 million of reimbursements and tax credits under government programs. The company says it expects the negative impact of the pandemic on revenue to continue through the first quarter of 2021 compared with the prior-year period, but expects organic revenue growth in the first half of 2021. Management also noted that the impact of the pandemic on revenue has been, and may continue to be, material. Cash and cash equivalents rose $1,294.8 million to $5,600.5 million at year-end, supported by $1,724.6 million of operating cash flow and several debt issuances, including $600 million of 2.45% Notes and $600 million of 4.20% Notes. Net debt fell to $210.7 million from $835.1 million. Share repurchases were suspended in March 2020, and the company has no notes maturing until May 2022. The filing reports a leverage ratio of 3.0 times against a covenant maximum that was raised to 4.0 times through December 31, 2021, with credit ratings of BBB+ (S&P) and Baa1 (Moody's) on long-term debt. KPMG LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting, and management concluded that internal control was effective as of December 31, 2020.
Feb 18, 2021
2019
Omnicom Group Annual Report, Year Ended Dec 31, 2019
Omnicom Group Inc. (NYSE: OMC) reported 2019 revenue of $14,953.7 million, down $336.5 million, or 2.2%, from $15,290.2 million in 2018. The filing attributes the decline mainly to foreign exchange (which reduced revenue $315.9 million, or 2.1%) and acquisition revenue net of disposition revenue (which reduced revenue $445.1 million, or 2.9%), partly offset by organic growth of $424.5 million, or 2.8%. Operating profit was $2,122.3 million versus $2,133.5 million, with operating margin rising to 14.2% from 14.0%. Net income attributed to Omnicom Group Inc. rose $12.7 million, or 1.0%, to $1,339.1 million, and diluted EPS increased 3.9% to $6.06. The 2018 results included a $178.4 million net gain on disposition of subsidiaries and $149.4 million of repositioning charges, so the company also presented non-GAAP comparisons. Balance sheet and liquidity were stable. Cash and cash equivalents and short-term investments totaled $4,309.3 million, long-term debt including current portion was $5,134.3 million, and net debt decreased to $835.1 million from $1,233.9 million. Operating cash flow was $1,856.0 million. The company returned capital through $564.3 million of common dividends paid and $610.2 million of share repurchases. At year-end the Leverage Ratio was 2.2 times against a covenant maximum of 3 times, and the Interest Coverage Ratio was 10.4 times against a minimum of 5 times. Management expects organic revenue to increase modestly in 2020, while foreign exchange is estimated to reduce first-quarter 2020 revenue by approximately 0.5%. Key risks flagged in the filing include exposure to client spending reductions and payment delays in economic downturns, the concentration of revenue in large clients (the 100 largest clients represented approximately 51% of revenue), currency fluctuations (international operations were approximately 46% of revenue), Brexit-related uncertainty, and goodwill impairment risk. KPMG LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Feb 11, 2020
2018
Omnicom Group Annual Report, Year Ended Dec 31, 2018
Omnicom Group Inc. reported 2018 revenue of $15,290.2 million, up $16.6 million, or 0.1%, from $15,273.6 million in 2017. Organic growth contributed $404.2 million (2.6%), while acquisitions net of dispositions reduced revenue by $326.6 million (2.1%), changes in foreign exchange added $85.1 million (0.6%), and the adoption of ASC 606 reduced revenue by $146.1 million (1.0%). Net income attributable to Omnicom Group Inc. rose $238.0 million, or 21.9%, to $1,326.4 million, and diluted net income per share increased 25.4% to $5.83. Results were helped by a $178.4 million net gain on the disposition of subsidiaries, primarily the sale of Sellbytel, offset by $149.4 million of repositioning charges taken in the third quarter. Operating profit rose to $2,133.5 million, and operating margin improved to 14.0% from 13.6%. The effective tax rate fell to 25.6% from 36.9%, mainly due to the reduction in the U.S. federal statutory rate under the Tax Act. Cash and cash equivalents and short-term investments were $3,657.9 million at year-end, against net debt of $1,233.9 million. Management expects organic revenue to increase modestly in 2019, and expects a net reduction to revenue of approximately 2.5% for the full year from dispositions. Revenue growth was uneven by region: North America decreased 2.8%, Europe rose 6.0%, Asia-Pacific rose 3.6%, and Latin America fell 7.5%.
Feb 12, 2019
2017
Omnicom Group Annual Report, Year Ended Dec 31, 2017
Omnicom Group Inc. reported 2017 revenue of $15,273.6 million, down $143.3 million, or 0.9%, from $15,416.9 million in 2016. Acquisition revenue net of dispositions reduced revenue by $647.3 million (4.2%), primarily reflecting the sale of its specialty print media business, while organic growth added $461.1 million (3.0%) and foreign exchange added $42.9 million (0.3%). Operating profit rose $50.8 million to $2,059.7 million, lifting operating margin to 13.5% from 13.0%, and EBITA margin to 14.2% from 13.8%. Operating expenses decreased 1.4%, driven by a $190.9 million (1.7%) decline in salary and service costs. Net income attributable to Omnicom Group Inc. fell $60.2 million, or 5.2%, to $1,088.4 million, and diluted EPS declined 2.7% to $4.65. The decline reflects a $106.3 million net increase in income tax expense from the Tax Cuts and Jobs Act, which reduced diluted EPS by $0.45. Excluding the Tax Act effect, the company's effective tax rate would have been 31.3%. The effective tax rate for 2017 was 36.9%, compared with 32.6% in 2016. The balance sheet strengthened: cash and cash equivalents and short-term investments rose to $3,796.4 million, net debt fell $798.2 million to $1,128.3 million, and shareholders' equity increased to $2,615.1 million. Operating cash flow was $2,023.9 million, and the company repurchased $568.4 million of common stock and paid $515.2 million in common dividends. Management expects 2018 revenue to increase modestly, and the Tax Act is expected to reduce the 2018 effective tax rate by 3.5% to 4.5%. The filing also discloses a Department of Justice Antitrust Division investigation into video production and post-production practices, which management does not currently believe will have a material adverse effect.
Feb 15, 2018
2016
Omnicom Group Annual Report, Year Ended Dec 31, 2016
Omnicom Group Inc. (OMC) reported 2016 revenue of $15,416.9 million, up $282.5 million, or 1.9%, from $15,134.4 million in 2015. Foreign exchange reduced revenue by $283.8 million (1.9%), acquisitions net of dispositions added $38.2 million (0.3%), and organic growth added $528.1 million (3.5%). Operating profit rose to $2,008.9 million from $1,920.1 million, and operating margin improved to 13.0% from 12.7%. Net income attributable to Omnicom Group Inc. increased $54.7 million, or 5.0%, to $1,148.6 million, and diluted net income per share rose to $4.78 from $4.41. By discipline, advertising grew 4.7% to $8,194.5 million and public relations grew 3.4%, while CRM declined 3.6% to $4,738.3 million. Management expects 2017 revenue to increase modestly, in excess of weighted average nominal GDP growth in its major markets, excluding currency effects, and expects currency changes to reduce 2017 revenue by approximately 1.25% at February 6, 2017 exchange rates. Total debt was $4,949.3 million against cash and short-term investments of $3,022.8 million, leaving net debt of $1,926.5 million. The Credit Facility covenants were met, with a Leverage Ratio of 2.2 times and an Interest Coverage Ratio of 11.0 times. The company disclosed that two subsidiaries received Department of Justice Antitrust Division subpoenas on December 14, 2016 regarding an investigation of video production and post-production practices. Omnicom stated it is fully cooperating and does not currently believe the investigation will have a material adverse effect on results or financial position. The company also retired 100 million treasury shares in December 2016 and repurchased $602.2 million of common stock during 2016.
Feb 9, 2017
2015
Omnicom Group Annual Report, Year Ended Dec 31, 2015
Omnicom Group Inc. (NYSE: OMC) reported 2015 revenue of $15,134.4 million, down $183.4 million, or 1.2%, from $15,317.8 million in 2014. Changes in foreign exchange rates reduced revenue by $1.0 billion (6.6%), acquisitions net of dispositions added $14.6 million, and organic growth added $810.8 million (5.3%). Operating income was $1,920.1 million versus $1,944.1 million, and operating margin held at 12.7%. Net income attributable to Omnicom Group Inc. was $1,093.9 million, or $4.41 diluted per share, compared with $1,104.0 million, or $4.24 diluted per share, in 2014. Diluted EPS rose 4.0% to $4.41, reflecting a lower weighted average share count from repurchases. Cash flow from operations was $2,172.3 million, and cash and cash equivalents reached $2.6 billion at December 31, 2015. The company paid $496.7 million in dividends to common shareholders and repurchased $727.5 million of common stock during 2015. Total debt was $4,570.8 million, and net debt decreased to $1,951.1 million from $2,159.4 million. Management expects 2016 revenue to increase modestly, in excess of weighted average nominal GDP growth in its major markets, while foreign exchange is expected to reduce 2016 revenue by approximately 2.0%. Concentration remained limited: the largest client represented 2.7% of 2015 revenue and the 100 largest clients represented approximately 52%. The company also disclosed that the $1.0 billion 5.9% Senior Notes mature April 15, 2016, and that its goodwill of $8,676.4 million was not impaired at June 30, 2015.
Feb 9, 2016
2014
Omnicom Group Annual Report, Year Ended Dec 31, 2014
Omnicom Group Inc. (OMC) reported its 2014 annual results in this Form 10-K, filed February 10, 2015. The company is a strategic holding company providing advertising, marketing and corporate communications services through five branded agency networks, with revenue of $15,317.8 million in 2014, up 5.0% from $14,584.5 million in 2013. Organic growth was 5.7%, foreign exchange reduced revenue by 0.8%, and acquisitions net of dispositions added 0.1%. Operating income rose to $1,944.1 million from $1,825.3 million, with operating margin of 12.7% versus 12.5%. Net income attributed to Omnicom Group Inc. increased 11.4% to $1,104.0 million, and diluted earnings per share rose to $4.24 from $3.71. Results were affected by the proposed merger with Publicis Groupe S.A., which was terminated on May 8, 2014 with no termination fee payable by either party. Merger expenses were $8.8 million in 2014 and $41.4 million in 2013. Excluding these expenses, diluted EPS was $4.23 in 2014 and $3.84 in 2013. Management expects 2015 revenue to increase modestly in excess of weighted average nominal GDP growth in major markets, but expects foreign exchange to reduce 2015 revenue by approximately 5%. Balance sheet and capital activity saw a notable shift. Cash and cash equivalents decreased to $2.4 billion, and net debt rose to $2,179.9 million from $1,311.0 million. The company issued $750 million of 3.65% Senior Notes due 2024 and redeemed its 2032 convertible notes. Share repurchases totaled $1,063.0 million, and dividends declared were $1.90 per share, up from $1.60. Management stated it expects sufficient liquidity to fund non-discretionary and discretionary spending through 2015.
Feb 10, 2015
2013
Omnicom Group Annual Report, Year Ended Dec 31, 2013
Omnicom Group Inc. (NYSE: OMC) reported 2013 revenue of $14,584.5 million, up 2.6% from $14,219.4 million in 2012, with organic growth of 3.5%. Operating income rose to $1,825.3 million from $1,804.2 million, while operating margin edged down to 12.5% from 12.7% because of $41.4 million of merger expenses tied to the pending Publicis combination. Net income attributable to Omnicom was $991.1 million, or $3.71 per diluted share, compared with $998.3 million, or $3.61, in 2012. Excluding the merger expenses, the filing states net income of $1,026.0 million and diluted EPS of $3.84. The central investor issue is the Business Combination Agreement with Publicis Groupe S.A., signed July 27, 2013, under which both companies would merge into a new Dutch holding company, Publicis Omnicom Group. Omnicom shareholders would receive 0.813008 of a Publicis Omnicom Group share per Omnicom share, plus a $2.00 per share special cash dividend. The filing says completion is unlikely before the third quarter of 2014, requires two-thirds shareholder approval and regulatory clearances, and carries a $500 million termination fee payable to Publicis in some circumstances. Omnicom suspended open-market share repurchases from the third quarter of 2013. A shareholder class action (In re Omnicom Group Inc. Shareholder Litigation) seeks to enjoin or rescind the deal; management believes it is without merit. Balance sheet and liquidity remained solid. Cash and cash equivalents were $2,710.5 million at year-end, total debt was $4,039.7 million, and net debt was $1,311.0 million, down from $1,756.4 million. The company held a $2.5 billion Credit Agreement expiring October 12, 2016, with no borrowings outstanding. Credit ratings were BBB+ (S&P) and Baa1 (Moody's). Management expects 2014 revenue to rise modestly, above weighted average nominal GDP growth in its major markets, excluding currency effects and the merger.
Feb 12, 2014
2012
Omnicom Group Annual Report, Year Ended Dec 31, 2012
Omnicom Group Inc. (NYSE: OMC) reported 2012 revenue of $14,219.4 million, up 2.5% from $13,872.5 million in 2011, with organic growth of 4.0% partially offset by a 2.2% negative foreign exchange impact. Operating income rose to $1,804.2 million from $1,671.1 million, lifting operating margin to 12.7% from 12.0%, and EBITA margin to 13.4% from 12.7%. Net income attributable to Omnicom Group Inc. increased 4.8% to $998.3 million, and diluted earnings per share rose 8.4% to $3.61. Growth was led by the United States (revenue up 4.5%) and Rest of the world (up 9.0%), while Euro markets declined 10.4%. Advertising grew 4.6% and public relations grew 4.9%, while specialty communications decreased 2.1%. The company's balance sheet and capital allocation shifted during 2012. Omnicom issued $1.25 billion of 3.625% Senior Notes due 2022, and total debt rose to $4,455.3 million from $3,193.1 million, while net debt increased to $1,756.4 million from $1,388.1 million. Cash and short-term investments reached $2,698.9 million. The company repurchased $1,136.5 million of common stock and paid $397.8 million in dividends, with dividends declared per share rising to $1.20 from $1.00. Approximately $659.4 million of convertible notes may be put back to Omnicom in June and July 2013, which management expects to fund from cash and its $2.5 billion Credit Agreement. Covenant ratios were a Leverage Ratio of 2.1 times and an Interest Coverage Ratio of 11.6 times, against limits of 3 times and at least 5 times, respectively. Management expects 2013 revenue to increase modestly, in excess of weighted average nominal GDP growth in its major markets, and expects an effective tax rate of approximately 33.6%. Goodwill of $8,844.2 million was not impaired at its June 30, 2012 test, and the company stated that the minimum decline in a reporting unit's fair value needed to fail Step 1 was approximately 70%. The company also took a $29.2 million impairment on its Egypt equity investment in the fourth quarter.
Feb 19, 2013
2011
Omnicom Group Annual Report, Year Ended Dec 31, 2011
Omnicom Group Inc. (NYSE: OMC) reported 2011 revenue of $13,872.5 million, up 10.6% from $12,542.5 million in 2010, with organic growth of 6.1%, foreign exchange adding 2.6% and acquisitions net of dispositions adding 1.9%. Operating income rose to $1,671.1 million (operating margin 12.0% versus 11.6%), and net income attributable to Omnicom was $952.6 million, or $3.33 per diluted share, compared with $827.7 million, or $2.70, in 2010. Results were helped by a $123.4 million non-cash remeasurement gain from acquiring control of the Clemenger Group, partly offset by $131.3 million of first-quarter 2011 repositioning charges, including $201 million of total severance for the year. Management expects 2012 revenue to increase modestly, in excess of average nominal GDP growth in its major markets, excluding foreign exchange impacts, and expects foreign exchange to reduce 2012 revenue by approximately 1.5%. Europe remained weak in 2011 due to the sovereign debt crisis, which management flagged as a risk to client spending. Cash and cash equivalents ended the year at $1,781.2 million, and net debt rose to $1,388.1 million from $876.2 million. The company repurchased $849.0 million of common stock and paid $269.1 million in dividends. Convertible notes totaling $659.4 million carry put dates on July 31, 2012 ($252.7 million) and June 17, 2013 ($406.6 million), which management expects to fund from cash and its $2.5 billion Credit Agreement. The filing states that the company's largest client represented 2.6% of 2011 revenue and its top 100 clients represented approximately 50% of revenue. KPMG LLP issued an unqualified opinion on the financial statements and found internal control over financial reporting effective as of December 31, 2011.
Feb 17, 2012
2010-A
Omnicom Group Annual Report (Amendment), Year Ended Dec 31, 2010
Omnicom Group Inc. filed this Amendment No. 1 to its Form 10-K for the fiscal year ended December 31, 2010, dated February 24, 2011. The stated purpose of the amendment is to furnish Exhibit 101, the Interactive Data File (XBRL Exhibit). The company says the original Form 10-K, filed with the SEC on February 23, 2011, could not be accepted because of formatting issues related to underlines in the interactive data file. The filing states that no other changes were made to the Form 10-K and that the amendment does not reflect subsequent events or update any disclosures in the original report. The cover page sets out the basic equity data. The aggregate market value of common stock held by non-affiliates was $10,317,000,000 as of June 30, 2010. As of February 15, 2011, 284,035,000 shares of common stock, $.15 par value, were outstanding. The company is a large accelerated filer and a well-known seasoned issuer, and its common stock is registered on the New York Stock Exchange. For investors, the practical content of this filing is the XBRL data file. Certain portions of the definitive proxy statement for the annual meeting of shareholders scheduled for May 24, 2011 are incorporated by reference into Part III of the report.
Feb 24, 2011
2010
Omnicom Group Annual Report, Year Ended Dec 31, 2010
Omnicom Group Inc. is a strategic holding company providing advertising, marketing and corporate communications services through multiple agencies in all major markets worldwide. In 2010, revenue rose 7.0% to $12,542.5 million from $11,720.7 million, with organic growth contributing $749.1 million. Operating income increased 6.2% to $1,460.2 million, and net income attributable to Omnicom Group Inc. rose 4.4% to $827.7 million, or $2.70 per diluted share (versus $2.53 in 2009). Salary and service costs rose to 73.5% of revenue from 72.1%, while office and general expenses fell to 14.9% from 16.2%. The company ended 2010 with cash and short-term investments of $2,300.0 million and total debt of $3,176.2 million, leaving net debt of $876.2 million. During 2010 it issued $1.0 billion of 4.45% Senior Notes due 2020, repurchased $66.5 million of convertible notes, and bought back $1,296.0 million of common stock. It also entered a new $2.0 billion credit facility in December 2010 that expires December 9, 2013. Dividends declared rose to $0.80 per share from $0.60. Management highlighted a strategic review that it expects to reduce annual revenue by $250 million to $300 million by disposing of or repositioning non-core businesses, with related charges of $90 million to $110 million expected in the first quarter of 2011. It also expects a non-cash gain of approximately $120 million from the early-2011 increase in its Clemenger Group stake to almost 75%. Convertible notes totaling $660 million can be put to the company in August 2011 and June 2013, and the filing states the company expects to fund these from available cash and its credit facility.
Feb 23, 2011
2009
Omnicom Group Annual Report, Year Ended Dec 31, 2009
Omnicom Group Inc. (NYSE: OMC) is a strategic holding company providing advertising, marketing and corporate communications services through multiple agencies worldwide. Its 2009 revenue declined 12.3% to $11,720.7 million from $13,359.9 million in 2008, driven by a broad-based drop in client spending, with foreign exchange reducing revenue by $454.3 million and organic growth declining by $1,154.1 million. Operating income fell 18.6% to $1,374.9 million, and net income attributable to Omnicom decreased 20.7% to $793.0 million, or $2.53 diluted EPS versus $3.14 in 2008. Salary and service costs rose to 72.1% of revenue from 71.6%, partly reflecting $31.4 million of higher severance costs. Balance sheet and liquidity improved during the year. Net debt fell to $662.9 million from $1,960.8 million, and cash and short-term investments rose to $1,594.8 million. Total debt declined to $2,257.7 million after the company issued $500 million of 6.25% Senior Notes due 2019 and retired a substantial part of its convertible notes. Convertible debt outstanding fell to $726.0 million, with holders able to put $467.5 million in June 2010 and $252.7 million in July 2010. The company also has a $2.5 billion credit facility expiring June 2011, and its debt was rated A- by S&P, Baa1 by Moody's and A- by Fitch. The filing also discloses a securities class action (In re Omnicom Group Inc. Securities Litigation) that was dismissed in January 2008 and is on appeal before the Second Circuit, where the outcome is currently not determinable. Management reported effective internal control over financial reporting as of December 31, 2009, and KPMG LLP issued an unqualified audit opinion. Dividends were $0.60 per share in both 2008 and 2009.
Feb 19, 2010
2008
Omnicom Group Annual Report, Year Ended Dec 31, 2008
Omnicom Group Inc. (NYSE: OMC) reported 2008 revenue of $13,359.9 million, up 5.2% from $12,694.0 million in 2007, with organic growth of 2.9%, foreign exchange adding 1.3%, and acquisitions adding 1.0%. Net income rose 2.5% to $1,000.3 million and diluted EPS rose 7.5% to $3.17. The filing notes that growth slowed through the second half of 2008 and that fourth-quarter revenue fell 7.0% to $3,371.3 million, as clients cut spending during the global recession. In response, the company reduced its workforce and incurred severance costs, which pushed salary and service costs to 71.6% of revenue from 71.0% in 2007. The balance sheet shows cash and short-term investments of $1,112.4 million, down from $1,841.0 million, and net debt of $1,960.8 million, up from $1,228.3 million. Shareholders' equity fell to $3,522.8 million from $4,091.7 million, reflected in accumulated other comprehensive loss and $846.8 million of treasury stock purchases during 2008. The company has a $2.5 billion credit facility that expires June 23, 2011. Management states it has not repurchased stock since August 2008 and does not plan to resume until credit markets stabilize. The most significant near-term item is the put of $841.2 million of 2031 convertible notes on February 9, 2009. Omnicom borrowed $814.4 million under its credit facility and received $26.8 million from equity investors in a partnership it controls to fund the purchase, retiring $295.2 million and having the partnership hold the remaining $546.0 million. Credit ratings are A- (S&P), Baa1 (Moody's) and A- (Fitch). Management expects foreign exchange to reduce 2009 revenue by between 6.5% and 7.5% at January 30, 2009 exchange rates.
Feb 27, 2009
2007
Omnicom Group Annual Report, Year Ended Dec 31, 2007
Omnicom Group Inc. (NYSE: OMC) describes itself as a strategic holding company that provides advertising, marketing and corporate communications services through multiple agencies in all major markets worldwide. Its revenue is about evenly divided between U.S. and non-U.S. operations. For 2007, revenue increased 11.6% to $12,694.0 million from $11,376.9 million, with organic growth of 7.1%, foreign exchange adding 3.8%, and acquisitions net of dispositions adding 0.7%. Operating profit rose 11.8% to $1,659.1 million, with operating margin of 13.1% versus 13.0% in 2006. Net income increased 12.9% to $975.7 million, and diluted EPS rose 18.0% to $2.95. Cash flow and balance sheet highlights: net cash provided by operating activities was $1,599.3 million in 2007, capital expenditures were $223.0 million, and $899.7 million was spent on treasury share purchases. Cash and cash equivalents were $1,793.2 million at year-end, against total debt of $3,069.3 million. The company reported $2.5 billion in unused committed credit facilities, and its debt ratings were A- (S&P), Baa1 (Moody's) and A- (Fitch). Holders of convertible notes can require repurchase of up to $2.0 billion at specified dates, and the company states it expects to have sufficient cash and credit to fund any such put. Legal matters remain open. A securities class action was dismissed on January 28, 2008, and plaintiffs filed notice of intent to appeal. A shareholder derivative action was dismissed on appeal, and the plaintiffs' motion for reargument or leave to appeal was denied on January 31, 2008. Management states that the allegations are baseless and that it cannot determine the outcome of these cases.
Feb 22, 2008
2006
Omnicom Group Annual Report, Year Ended Dec 31, 2006
Omnicom Group Inc. (NYSE: OMC) describes itself in its 2006 annual report as a strategic holding company providing advertising, marketing and corporate communications services through multiple agencies in all major markets. Revenue rose 8.5% to $11,376.9 million in 2006 from $10,481.1 million in 2005, with organic growth of $797.6 million (7.6%), foreign exchange adding $72.3 million, and acquisitions adding $25.9 million. Operating profit increased to $1,483.5 million, and the operating margin was 13.0% versus 12.8% in 2005. Net income rose 9.3% to $864.0 million, and diluted EPS rose 14.4% to $4.99 from $4.36. Cash flow from operations was $1,741.2 million in 2006, versus $991.2 million in 2005. The company issued $1.0 billion of 5.90% Senior Notes due 2016 (gross proceeds $995.1 million) and repurchased treasury shares for $1,344.6 million, including a $458.7 million accelerated share repurchase. Total debt was $3,066.3 million at year-end, against cash and short-term investments of $1,928.8 million, leaving net debt of $1,137.5 million. The company holds $2.5 billion of unused committed credit facilities, and its debt ratings are A- (S&P), Baa1 (Moody's) and A- (Fitch). The filing also flags risks. Holders of convertible notes can require repurchase of up to $2.0 billion at specified dates, and the 100 largest clients represented 46.2% of 2006 revenue. Two shareholder lawsuits, a securities class action and a derivative action, remain pending, and management states it is unable to determine their outcome. KPMG LLP issued an unqualified opinion, and management concluded internal control over financial reporting was effective as of December 31, 2006.
Feb 27, 2007
2005
Omnicom Group Annual Report, Year Ended Dec 31, 2005
Omnicom Group Inc. (OMC), a strategic holding company, reported 2005 revenue of $10.48 billion, up 7.5% from $9.75 billion in 2004, with organic growth of 7.3%. Operating profit rose 10.2% to $1.34 billion, and the operating margin improved to 12.8% from 12.5%. Net income increased 9.3% to $790.7 million, and diluted EPS rose 12.4% to $4.36 from $3.88. Revenue was about evenly split between U.S. and non-U.S. operations, with U.S. revenue growing 10.0% and international revenue growing 4.7%. Traditional media advertising was the largest discipline at about 44% of revenue. The balance sheet shows cash and cash equivalents of $835.8 million and short-term investments of $374.1 million at year-end 2005. Total assets were $15.92 billion, and shareholders' equity was $3.95 billion. Convertible notes totaled $2.34 billion, and holders of the 2031, 2032 and 2033 notes may require repurchase at specified dates. Management reported $2.5 billion in unused committed credit facilities and states that current resources are sufficient for foreseeable cash requirements. Two shareholder lawsuits, a securities class action and a derivative action, remain pending, and management says it cannot determine their outcome. For investors, the filing shows steady top-line growth, margin expansion and rising earnings per share, supported by share repurchases of $731.8 million in 2005. Key items to monitor are the put rights on convertible notes, which total $2.3 billion, and the pending litigation tied to the internet investments made by Communicade.
Feb 24, 2006
2004
Omnicom Group Annual Report, Year Ended Dec 31, 2004
Omnicom Group Inc. (NYSE: OMC) filed this combined 2004 annual report on Form 10-K and shareholder report, describing itself as a strategic holding company that provides advertising, marketing and corporate communications services through multiple agencies in all major world markets. For 2004, revenue rose 13.1% to $9.75 billion from $8.62 billion, operating profit increased to $1.22 billion from $1.09 billion, and net income grew 14.7% to $723.5 million. Diluted EPS was $3.88 versus $3.37 in 2003. Organic growth contributed $571.3 million, foreign exchange added $390.6 million, and acquisitions added $163.9 million. Operating margin was 12.5% for the full year, though the fourth-quarter margin of 14.2% improved on the prior year's 14.1%. Salary and service costs rose to 70.2% of revenue from 68.6%, while office and general expenses fell to 17.3% from 18.8%. Balance sheet and liquidity were solid. Total assets reached $16.0 billion and shareholders' equity was $4.08 billion. Cash and cash equivalents were $1.17 billion, and the company had $2.0 billion in unused committed credit facilities. Convertible notes totaled $2.34 billion, and a large share of these can be put to the company for cash at par on specific dates, with $892.3 million potentially due in less than one year. Management stated that its financial covenants were met by a significant margin and that its cash, liquidity and access to capital markets are sufficient for foreseeable needs. The filing also notes pending securities class actions filed in 2002 and a related shareholder derivative action, whose outcome management cannot currently determine.
Mar 15, 2005
2003
Omnicom Group Annual Report, Year Ended Dec 31, 2003
Omnicom Group Inc. (NYSE: OMC) reported 2003 revenue of $8.62 billion, up 14.4% from $7.54 billion in 2002, and net income of $675.9 million, up 5.0% from $643.5 million. Diluted EPS was $3.59 versus $3.44. The filing attributes 6.2 percentage points of revenue growth to foreign exchange, 3.6 points to acquisitions and 4.6 points to organic growth. Operating margin declined to 13.5% from 14.7%, as salary and service costs rose to 67.7% of revenue from 65.7%, which management attributed to greater use of freelance labor, severance costs and incentive compensation. Management said margins should begin to stabilize with continued U.S. economic improvement and cost-reduction actions. Balance sheet and liquidity: cash and cash equivalents were $1.53 billion at year-end 2003, and the company had $2.0 billion of unused committed credit facilities. Convertible notes totaled $2.34 billion, up from $1.75 billion, following the June 2003 issuance of $600 million of zero coupon convertible notes due 2033. Ratings were A- (S&P), Baa1 (Moody's) and A- (Fitch). The company reported a debt-to-EBITDA ratio of 2.0 times against a 3.0 times covenant, and EBITDA-to-interest of 22.9 times against a 5.0 times minimum. The filing also discloses that the company plans to adopt fair value expensing of stock options in the first quarter of 2004, which it expects to reduce future net income and EPS. A securities class action filed in June 2002 remains pending, and the company is unable to determine its outcome.
Mar 15, 2004
2002
Omnicom Group Annual Report, Year Ended Dec 31, 2002
Omnicom Group Inc. reported 2002 revenue of $7.54 billion, up 9.4% from $6.89 billion in 2001, and net income of $643.5 million, up 9.8% from $586.2 million on an as-adjusted basis (diluted EPS $3.44, up 9.9% from $3.13). Acquisitions added $362.5 million to revenue, organic growth added $193.1 million and foreign exchange added $91.3 million. Operating margin declined to 14.7% from 15.4%, and the company describes the business climate as challenging, with near-term demand for marketing services expected to remain unpredictable while political tensions persist. Balance sheet and cash flow: operating cash flow was $1.00 billion in 2002, versus $775.6 million in 2001. Total assets rose to $11.82 billion, and goodwill reached $4.85 billion. Convertible notes increased to $1.75 billion after the March 2002 issuance of $900.0 million Zero Coupon Zero Yield notes. Management states that operating cash flow, available credit lines and capital market access are sufficient for foreseeable cash requirements. Share repurchases totaled $371.7 million in 2002. The filing also discloses a securities class action filed June 13, 2002 and a shareholder derivative action filed June 28, 2002, both tied to the company's statements and to the formation of Seneca Investments LLC. Management is unable to determine the outcome or its effect on financial position. Management also notes contingent acquisition obligations of $471.3 million and additional purchase obligations of $234.5 million that are not recorded as liabilities on the balance sheet.
Mar 27, 2003
2001
Omnicom Group Annual Report, Year Ended Dec 31, 2001
Omnicom Group Inc. (NYSE: OMC) reported its 2001 annual results in this Form 10-K, which also serves as its 2001 annual report to shareholders. Revenue rose 11.9% to $6,889.4 million from $6,154.2 million in 2000, with domestic revenue up 14.1% to $3,717.0 million and international revenue up 9.5% to $3,172.4 million. Foreign exchange reduced international revenue by $174.0 million. Operating margin declined to 14.1% from 14.3% in 2000 (excluding the Razorfish gain), reflecting the effects of September 11th and weaker economic conditions. Net income rose 1.0% to $503.1 million including the 2000 Razorfish gain, and diluted EPS was $2.70 versus $2.73 in 2000. The company's balance sheet grew, with total assets of $10.62 billion at year-end 2001 versus $9.85 billion a year earlier. Goodwill and other intangibles rose to $3.93 billion from $2.99 billion. Net cash from operating activities was $775.6 million, while investing activities used $947.9 million, including $818.8 million for acquisitions. Omnicom made 39 acquisitions in 2001 with an aggregate cost of $844.7 million. Long-term convertible debentures stood at $850.0 million after the February 2001 issuance of zero-coupon notes due 2031, and a further $900.0 million of zero-coupon notes due 2032 were issued in March 2002. The filing describes Omnicom as one of the largest marketing and corporate communications companies in the world, with over 1,500 subsidiary agencies in more than 100 countries and over 57,000 employees. Revenue is roughly evenly split between U.S. and non-U.S. operations, and the 10 largest clients accounted for 17% of 2001 consolidated revenue. Management noted that the company's dividend rose to $0.20 per quarter in 2001.
Mar 28, 2002
2000
Omnicom Group Annual Report, Year Ended Dec 31, 2000
Omnicom Group Inc. reported record 2000 results, with consolidated revenue rising 20.0% to $6,154.2 million from $5,130.5 million in 1999. Net income reached $498.8 million, or $2.73 diluted earnings per share. That figure includes a $110.0 million pretax ($63.8 million after tax) gain from selling part of its Razorfish investment. Excluding that gain, net income was $435 million and diluted EPS was $2.40, up 19.4%. Domestic revenue grew 28.6%, and international revenue grew 11.5%, though the filing notes that currency translation reduced international revenue by 11.0%. The company describes its operating margin as improving to 14.3% from 14.1%, citing operating leverage and cost controls. Cash generation was lower than in 1999. Net cash from operating activities was $685.9 million, compared with $972.6 million in 1999, as the filing attributes the decline to a smaller increase in accounts payable and higher prepaid expenses. Investing outflows were $1,034.6 million, including $884.3 million for acquisitions and investments, net. Financing provided $282.1 million, with net borrowings of $731.5 million and $237.1 million spent repurchasing stock. In February 2001, the company issued $850 million of zero-coupon Liquid Yield Option Notes due 2031, with net proceeds of $830.2 million. Management states that operating cash flow, capital market access and credit lines are sufficient for its foreseeable cash requirements. The filing reports total assets of $9.89 billion at year end and 56,000 employees. The company says its 10 largest clients accounted for 18% of 2000 consolidated revenue, and its largest client accounted for 5.2%. It also states that it does not expect pending legal proceedings to have a material adverse effect, and that the value-at-risk analysis of its derivative portfolio indicated immaterial risk of loss.
Mar 27, 2001
1995
Omnicom Group Annual Report, Year Ended Dec 31, 1995
Omnicom Group Inc. reported full-year 1995 commissions and fees of $2.26 billion, up from $1.91 billion in 1994, and net income of $139.96 million, or $1.89 per primary share, compared with $83.49 million (or $1.18 per share after the 1994 cumulative accounting change). Management attributes the growth to net new business gains, higher spending from existing clients, and acquisitions. Domestic commissions and fees rose 12.8 percent and international revenues rose 24.3 percent, with the weaker U.S. dollar adding 6.7 percent to international revenues. Operating margin, which excludes net interest expense, improved to 12.0 percent from 11.3 percent. The company describes itself as the third-largest advertising agency group worldwide, operating the BBDO Worldwide, DDB Needham Worldwide and TBWA International networks plus the Diversified Agency Services division. The balance sheet grew over the year. Total assets rose to $3.53 billion from $3.04 billion, and long-term debt increased to $290.4 million from $199.5 million, largely due to a Deutsche Mark 200 million floating rate bond issued in January 1995. Cash and cash equivalents reached $314.0 million at year end, and shareholders' equity increased to $551.5 million. The company had $374 million in committed lines of credit, of which $18 million was used. Subsequent to year end, it issued Deutsche Mark 100 million of floating rate bonds (approximately $68 million) on March 1, 1996, to be used for general corporate purposes, including reducing commercial paper. The filing shows a company with working capital pressure typical of agency businesses, as accounts receivable and accounts payable both grew substantially. Management reports no material pending legal proceedings, and the 1995 effective tax rate fell to 40.1 percent from 41.2 percent. The shares, which had been split two-for-one in December 1995, closed the year's fourth quarter at a high of $37 1/4, and the board declared a quarterly dividend of $.175 per share for April 1996.
Mar 27, 1996
1994
Omnicom Group Annual Report, Year Ended Dec 31, 1994
Omnicom Group Inc. reported its 10-K for the fiscal year ended December 31, 1994. Commissions and fees rose to $1,756,205 thousand in 1994 from $1,516,475 thousand in 1993, and net income was $80,125 thousand, or $2.34 per primary share, after a cumulative effect of a change in accounting principle of $28,009 thousand (SFAS No. 112). Income before the accounting change was $108,134 thousand, or $3.15 per primary share, compared with $85,345 thousand in 1993. The company operates through three agency networks (BBDO Worldwide, DDB Needham Worldwide and TBWA International) plus its Diversified Agency Services division. International operations generated 54% of 1994 billings, and the ten largest clients accounted for approximately 18% of 1994 billings. Total assets grew to $2,852,204 thousand at year end from $2,289,863 thousand, largely reflecting acquisitions, higher receivables and higher payables. Accounts receivable rose $238.4 million and accounts payable rose $367.7 million. Operating cash flow was $339,225 thousand, and cash and cash equivalents ended the year at $228,251 thousand. The company had $370 million of committed credit lines, of which $32 million was used, and it issued DM 200 million Floating Rate Bonds in January 1995. Long-term debt fell to $187,338 thousand from $278,312 thousand after the 6.5% convertible debentures were converted into common stock. The filing states that the company has no material pending legal proceedings beyond routine litigation. Management expects relatively favorable advertising growth in its major international markets, while noting that growth rates across its major markets are expected to vary in 1995. The quarterly dividend was $.31 per share, declared January 23, 1995.
Mar 29, 1995
1993-A
Omnicom Group Annual Report (Amendment), Year Ended Dec 31, 1993
Omnicom Group Inc. filed this Amendment No. 1 to its Form 10-K for the fiscal year ended December 31, 1993, dated February 7, 1995, which amends Item 14 to include Note 8 (Income Taxes) to the consolidated financial statements. The filing presents the company's 1993 financial statements, audited by Arthur Andersen & Co., whose report is dated February 22, 1994 and is unqualified. Commissions and fees rose to $1,516.5 million in 1993 from $1,385.2 million in 1992, and operating profit increased to $169.2 million from $146.4 million. Net income was $85.3 million, or $2.79 primary and $2.62 fully diluted per share, compared with $69.3 million in 1992. The company reported an effective income tax rate of 42.0% for 1993, against a statutory federal rate of 35.0%. The balance sheet expanded over the year. Total assets were $2,289.9 million at December 31, 1993, up from $1,951.9 million, and shareholders' equity increased to $402.2 million from $308.9 million. Cash and cash equivalents reached $174.8 million, and long-term debt was $278.3 million. Net cash provided by operating activities was $209.2 million in 1993, compared with $181.7 million in 1992. Much of the equity growth reflected the conversion of $85.9 million of 7% Convertible Subordinated Debentures into 3,334,079 common shares during 1993. Acquisition activity was significant in 1993, with aggregate acquisition cost of $132.8 million, including intangible assets of $149.7 million. The company also completed its acquisition of TBWA International B.V. in May 1993, accounted for as a pooling of interests. The filing states that adoption of SFAS No. 112 effective January 1, 1994 is estimated to reduce net income by approximately $27 million after tax.
Feb 7, 1995
1993
Omnicom Group Annual Report, Year Ended Dec 31, 1993
Omnicom Group Inc. (filed under this name; New York Stock Exchange symbol "OMC") reported 1993 commissions and fees of $1,516,475 thousand, up from $1,385,161 thousand in 1992, and net income of $85,345 thousand, up from $69,298 thousand. Primary earnings per share were $2.79 (1992: $2.45, restated) and fully diluted earnings per share were $2.62. The Company describes itself as operating advertising agencies through three independent agency networks, BBDO Worldwide, DDB Needham Worldwide and TBWA International, plus the Diversified Agency Services group. The filing states that 52% of billings in both 1993 and 1992 came from non-U.S. operations, and that the company was ranked third-largest advertising agency group worldwide by Advertising Age in 1993. The income statement shows operating profit rising to $169,199 thousand from $146,374 thousand, and total assets reaching $2,289,863 thousand at year end. Management attributes 1993 domestic revenue growth of 9 percent to acquisitions (4 percent), net new business and higher spending from existing clients (5 percent). International revenues rose 10 percent, with an 18 percent contribution from acquisitions, offset by a 12 percent reduction from the stronger U.S. dollar. The effective tax rate fell to 42.0% from 43.6%. Cash and cash equivalents increased $62 million to $175 million, and the company issued $144 million of 4.5%/6.25% Step-Up Convertible Subordinated Debentures due 2000. Management estimates that adopting SFAS No. 112 in 1994 will reduce after-tax net income by approximately $27 million. The filing reports no material pending legal proceedings beyond ordinary routine litigation, and 2,672 record holders of common stock as of March 15, 1994. The quarterly dividend was $.31 per share, and the Board declared a dividend of $.31 per share on January 24, 1994. The filing was audited by Arthur Andersen & Co., which issued an unqualified opinion.
Mar 30, 1994