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Omnicom Group Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 30, 1994
Period End
December 31, 1993
Security
OMC
In the record · 2016–202610-K1110-Q338-K107

OMC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’17Jul ’17
  2. Material agreement8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Material agreement8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 30, 1994. Cited figures are marked; the original filing is the authoritative source.

Omnicom Group Inc. (filed under this name; New York Stock Exchange symbol "OMC") reported 1993 commissions and fees of $1,516,475 thousanda, 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 $2.79b (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 thousandc 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 milliond, 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.

02—Key points

Key Highlights

  1. Commissions and fees rose to $1,516,475 thousand in 1993 from $1,385,161 thousand in 1992; net income rose to $85,345 thousand from $69,298 thousand.
  2. Primary EPS of $2.79 (1992: $2.45) and fully diluted EPS of $2.62 (1992: $2.31), as reported in the Selected Financial Data.
  3. Operating profit increased to $169,199 thousand from $146,374 thousand; operating margin was 11.2 percent in 1993 versus 11.1 percent in 1992.
  4. 52% of billings in both 1993 and 1992 came from non-U.S. operations; the company is ranked third-largest advertising agency group worldwide by Advertising Age.
  5. Issued $144 million of 4.5%/6.25% Step-Up Convertible Subordinated Debentures due 2000; redeemed the $85 million 7% debentures, which converted into common stock.
  6. Management estimates SFAS No. 112 adoption on January 1, 1994 will reduce after-tax net income by approximately $27 million.
  7. Total assets were $2,289,863 thousand at December 31, 1993, versus $1,951,950 thousand a year earlier; committed bank lines of credit were $359 million.

03—Questions

Frequently Asked Questions

  1. How did Omnicom's revenue and profit change in 1993?

    Commissions and fees rose to $1,516,475 thousand from $1,385,161 thousand, and net income rose to $85,345 thousand from $69,298 thousand. Management attributes the growth to acquisitions, net new business gains and higher spending from existing clients.

  2. Where does Omnicom generate its business?

    The filing states that 52% of the Agency's billings came from its non-U.S. operations in both 1993 and 1992. In 1993, international revenues increased 10 percent, while domestic revenues increased 9 percent.

  3. What accounting change could affect future earnings?

    Effective January 1, 1994, the Company will adopt SFAS No. 112, Employers' Accounting for Postemployment Benefits. The Company estimates the adoption will result in an unfavorable after-tax effect on net income of approximately $27 million.

  4. How did the company finance its activities and what are its credit resources?

    The company issued $144 million of 4.5%/6.25% Step-Up Convertible Subordinated Debentures due 2000. At December 31, 1993 it had $359 million in committed lines of credit, of which $27 million was used, and management believes these are adequate for short-term cash requirements.

  5. What dividends and shareholder information does the filing report?

    The Board declared a regular quarterly dividend of $.31 per share on January 24, 1994, payable April 1, 1994. Dividends declared were $1.24 per share in 1993 versus $1.21 in 1992. There were 2,672 record holders of common stock as of March 15, 1994.

04—Continue

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