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OMC · Omnicom Group

50 filings

10-Q

OMC 10-Q Quarterly Reports

Omnicom Group - 50 quarterly reports

Filing 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
  1. 2026-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2026

    Omnicom Group Inc. reported a sharply larger third quarter and first nine months of 2026, driven primarily by the November 2025 merger with The Interpublic Group of Companies, Inc. (IPG). Revenue for the three months ended September 30, 2026 rose to $6.42 billion from $4.04 billion, and operating income rose to $991.7 million from $530.1 million. Net income attributable to Omnicom was $656.0 million, or $2.38 per diluted share, versus $341.3 million, or $1.75, a year earlier. For the nine months, revenue was $19.23 billion and diluted EPS was $5.77, compared with $4.51. The filing states that results are not comparable to prior periods because IPG is included only from the closing date forward. Organic revenue growth for core operations was 7.2% in the quarter and 5.8% for the nine months, on a combined basis. Balance sheet and cash flow shifted toward capital returns and debt. Cash and cash equivalents fell to $3.80 billion from $6.88 billion at December 31, 2025, and long-term debt rose to $9.39 billion from $7.66 billion, after new senior notes were issued and a $1.4 billion 2026 note was repaid. Net cash provided by operating activities was $37.8 million for the nine months, against a use of $2.3 billion for operating capital. Share repurchases totaled $3.21 billion in cash during the nine months, including an accelerated share repurchase program of approximately $2.5 billion. Net debt increased to $6.22 billion. The company reported a Leverage Ratio of 2.3 times against a 3.5 times covenant limit. The filing also details merger-related costs, dispositions, and the purchase price allocation, which the company says is not yet final. Integration and acquisition-related costs were $40.4 million in the third quarter and $139.9 million for the nine months, and the company recorded a net gain on dispositions of $106.8 million in the quarter. Management stated that its disclosure controls and internal control over financial reporting were effective as of September 30, 2026.

    Oct 23, 2026
  2. 2026-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2026

    Omnicom Group Inc. reported a sharply larger second quarter 2026 following its November 26, 2025 merger with The Interpublic Group of Companies, Inc. (IPG), which is included in results only from the Closing Date forward. Revenue for the three months ended June 30, 2026 was $6.56 billion, up from $4.02 billion, and operating income rose to $922.5 million from $439.2 million. Net income attributable to Omnicom was $584.8 million, or $2.08 diluted per share, versus $257.6 million, or $1.31, a year earlier. For the six months, revenue was $12.81 billion and diluted EPS was $3.41. Management reported Core Operations revenue growth of 7.2% for the quarter, including organic growth of 6.1%, and EBITA of $1,040.2 million (15.9% margin). Cash flow and balance sheet activity were dominated by working capital and capital returns. Operating activities used $932.4 million in the first half, driven by $2.4 billion of operating capital use. Omnicom repurchased $2,988.2 million of common stock in the six months, including a roughly $2.5 billion accelerated share repurchase, and paid $481.5 million in common dividends. Cash and cash equivalents fell to $3.34 billion from $6.88 billion at year-end, and total debt rose to $10.00 billion, lifting net debt to $6.67 billion from $2.24 billion. The company reported a Leverage Ratio of 2.4 times against a 3.5 times covenant limit. The filing also discloses $99.5 million of Merger integration costs and $51.1 million of severance and repositioning costs in the first half of 2026, along with $34.3 million of losses on assets held for sale. Goodwill of $18.74 billion was not impaired at the May 1, 2026 annual test, and the purchase price allocation for IPG remains preliminary.

    Jul 29, 2026
  3. 2026-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2026

    Omnicom Group Inc. reported first-quarter 2026 revenue of $6,242.9 million, up from $3,690.4 million a year earlier, with the increase driven primarily by the November 26, 2025 merger with The Interpublic Group of Companies, Inc. (IPG). Operating income rose to $646.2 million from $452.6 million, but operating margin declined to 10.4% from 12.3%, reflecting higher amortization from acquired intangibles and $97.8 million of merger-related integration, acquisition, severance and disposal charges. Diluted net income per share was $1.35 versus $1.45 a year earlier, with the filing noting the offset of a larger weighted share count after the IPG share issuance. Net income attributable to Omnicom was $405.2 million, and EBITA rose to $763.6 million from $474.4 million, with EBITA margin at 12.2% versus 12.9%. Cash and balance sheet activity was significant in the quarter. Cash and cash equivalents fell to $4,288.1 million from $6,881.1 million, with operating activities using $553.2 million and share repurchases totaling $2,777.6 million in cash flows, including an accelerated share repurchase program of approximately $2.5 billion under a $5.0 billion authorization approved in February 2026. Omnicom issued $2.0 billion of senior notes in U.S. dollars and €600 million of euro notes in March 2026 and redeemed its $1.4 billion 3.600% notes due 2026. Net debt rose to $5,756.8 million from $2,235.4 million at December 31, 2025, and the filing states the Credit Facility leverage ratio was 2.5 times against a 3.5 times covenant. The filing describes organic growth of 3.9% on a combined basis for Core Operations, with foreign exchange adding $174.2 million to revenue. Revenue from businesses disposed of or held for sale contributed $627.2 million in the quarter. Management states that it expects foreign exchange to add 3.0% to revenue in the second quarter and 1.0% for the full year, assuming March 31, 2026 exchange rates.

    Apr 29, 2026
  4. 2025-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2025

    Omnicom Group Inc. reported third-quarter 2025 revenue of $4.04 billion, up 4.0% from $3.88 billion a year earlier, with organic growth of 2.6%. Operating income fell 11.7% to $530.1 million, and operating margin declined to 13.1% from 15.5%. Net income attributable to Omnicom fell 11.6% to $341.3 million, and diluted EPS dropped to $1.75 from $1.95. The decline reflects $60.8 million of acquisition-related costs and $38.6 million of repositioning costs tied to the pending acquisition of The Interpublic Group of Companies, Inc. (IPG), which together reduced diluted EPS by $0.41. For the nine months, revenue rose 3.3% to $11.74 billion, while operating income fell 10.5% to $1.42 billion and diluted EPS fell to $4.51 from $5.19. Balance sheet and cash flow show a shift in liquidity. Cash and cash equivalents declined to $3.41 billion from $4.34 billion at year-end 2024, and net cash used in operating activities was $99.2 million for the nine months, compared with $191.5 million a year earlier. Net debt rose to $2.89 billion from $1.72 billion at December 31, 2024. Long-term debt including the current portion was $6.28 billion, and a $1.40 billion 3.60% senior note due April 2026 was reclassified to current liabilities. The company reports a Leverage Ratio of 2.6 times against a 3.5 times covenant limit. The pending IPG merger is the central event in the filing. Omnicom has secured all required regulatory approvals except the European Union, and the company expects the acquisition to close by the end of November 2025. Under the Merger Agreement, IPG shareholders would receive 0.344 Omnicom shares per IPG share, with Omnicom shareholders expected to own about 60.6% of the combined company. The filing states that the merger is expected to have a material impact on Omnicom's business, results of operations and financial condition once completed.

    Oct 22, 2025
  5. 2025-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2025

    Omnicom Group Inc. reported second-quarter 2025 revenue of $4,015.6 million, up 4.2% from $3,853.8 million a year earlier, with organic growth of 3.0%. Operating income fell 13.9% to $439.2 million and diluted net income per share fell to $1.31 from $1.65. The decline reflects $88.8 million of repositioning costs and $66.0 million of acquisition-related costs tied to the pending merger with The Interpublic Group of Companies, Inc. (IPG), which together reduced diluted net income per share by $0.66 in the quarter. For the first six months, revenue rose 3.0% to $7,706.0 million, while diluted EPS fell to $2.77 from $3.24. The Federal Trade Commission concluded its antitrust review of the IPG acquisition on June 23, 2025, and reached a consent order with both companies. Omnicom continues to pursue other required regulatory approvals and expects the merger to close in the second half of 2025. Under the merger terms, IPG shareholders would receive 0.344 Omnicom shares per IPG share, with Omnicom shareholders expected to own about 60.6% of the combined company. Balance sheet and liquidity remain sound on the filing's figures. Cash and cash equivalents were $3.30 billion at June 30, 2025, and net debt rose to $3.00 billion from $1.72 billion at December 31, 2024, mainly because operating activities used $576.7 million in the first half, driven by working capital outflows. The company reported a leverage ratio of 2.6 times against a covenant maximum of 3.5 times, and no drawings were made under its $2.5 billion revolving credit facility.

    Jul 16, 2025
  6. 2025-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2025

    Omnicom Group Inc. reported first-quarter 2025 revenue of $3,690.4 million, up 1.6% from $3,630.5 million a year earlier, with organic revenue growth of 3.4% (adding $121.9 million), partly offset by a $59.2 million (1.6%) unfavorable foreign exchange impact. Operating income fell 5.5% to $452.6 million and operating margin declined to 12.3% from 13.2%. Diluted net income per share - Omnicom Group Inc. was $1.45 versus $1.59, down 8.8%, reflecting $33.8 million of acquisition-related costs tied to the pending merger with The Interpublic Group of Companies, Inc. (IPG), which reduced diluted EPS by $0.17. Excluding those costs, the filing notes the decline was driven by higher interest expense, a higher effective tax rate of 28.5%, and a lower share count resulting from repurchases. The pending Merger, agreed December 8, 2024, has shareholder approval from both companies as of March 18, 2025, but remains subject to regulatory approvals and other closing conditions. IPG shareholders would receive 0.344 Omnicom shares per IPG share, with Omnicom shareholders expected to own approximately 60.6% of the combined company. The filing states the Merger is expected to have a material impact on Omnicom's business, results of operations and financial condition if completed, and that Omnicom would owe IPG a $676 million termination fee in certain circumstances. Liquidity remained solid with $3,378.3 million of cash and cash equivalents and a 2.4 times Leverage Ratio against a 3.5 times covenant. Net cash used in operating activities was $786.8 million, driven by a $1,173.3 million use of operating capital, and net debt rose to $2,757.3 million from $1,717.2 million at December 31, 2024. The company repurchased 989,825 shares in March 2025 under a Rule 10b5-1 plan.

    Apr 16, 2025
  7. 2024-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2024

    Omnicom Group Inc. reported third-quarter 2024 revenue of $3.88 billion, up 8.5% from $3.58 billion a year earlier, with organic revenue growth of 6.5% and acquisitions (primarily Flywheel Digital, acquired in January 2024) adding 2.1%. Operating income rose 7.0% to $600.1 million for the quarter and 9.0% to $1.59 billion for the nine months, while diluted net income per share was $1.95 for the quarter versus $1.86 a year ago and $5.19 for the nine months versus $4.78. For the nine months, the company recorded $57.8 million of repositioning costs, primarily severance, which reduced diluted EPS by $0.22. EBITA rose to $622.3 million in the quarter and $1.65 billion for the nine months. Balance sheet activity was driven by acquisitions and capital returns. Cash and cash equivalents fell to $3.53 billion at September 30, 2024 from $4.43 billion at December 31, 2023, and net debt increased to $3.41 billion from $1.22 billion. Operating cash flow was negative $191.5 million for the nine months due to a $1.6 billion working capital use, and the company spent $900.9 million on business acquisitions and $365.3 million on share repurchases in the nine-month period. Omnicom issued $600 million of 5.30% Senior Notes due 2034 in August 2024 to help repay $750 million of 3.65% notes maturing November 1, 2024. The Leverage Ratio was 2.8 times against a covenant maximum of 3.5 times. Management stated that the company expects foreign exchange to increase fourth-quarter revenue by 1.0% and the net impact of foreign exchange and acquisitions and dispositions to increase fourth-quarter revenue by 1.8%, with full-year net impact at 2.0%. The filing reports that revenue growth was led by Advertising & Media, which was helped by Public Relations spending tied to the U.S. election cycle and Experiential revenue benefiting from the Summer Olympics.

    Oct 16, 2024
  8. 2024-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2024

    Omnicom Group Inc. reported second-quarter 2024 revenue of $3,853.8 million, up 6.8% from $3,609.9 million in the prior-year quarter, with organic revenue growth of 5.2%. Operating income fell 7.3% to $510.3 million, and operating margin declined to 13.2% from 15.3%, largely reflecting $57.8 million of repositioning costs, primarily severance. Net income attributed to Omnicom Group Inc. decreased 10.4% to $328.1 million, and diluted net income per share declined to $1.65 from $1.82. For the six months ended June 30, 2024, revenue rose 6.1% to $7,484.3 million, operating income rose to $989.2 million, and diluted EPS increased to $3.24 from $2.92. Cash and cash equivalents fell to $2,711.7 million from $4,432.0 million at December 31, 2023, as the company used $760.2 million in operating activities and spent $790.3 million on acquisitions, including Flywheel Digital, which closed on January 2, 2024 for a net cash purchase price of approximately $845 million. Long-term debt rose to $6,239.6 million (including current portion) after the issuance of €600 million 3.70% Senior Notes due 2032, and net debt increased to $3.5 billion from $1.2 billion at year-end 2023. The company reported a Leverage Ratio of 2.6 times against a 3.5 times covenant maximum, and it repurchased $249.8 million of common stock during the six months. Management stated that the company is in compliance with its covenants and that its liquidity sources are sufficient for non-discretionary cash needs over the next twelve months. Goodwill was not impaired as of the May 1, 2024 annual test, and a 1% increase in WACC and/or a 1% decrease in the long-term growth rate would not cause any reporting unit to fail the test.

    Jul 17, 2024
  9. 2024-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2024

    Omnicom Group Inc. reported first-quarter 2024 revenue of $3,630.5 million, up $187.2 million, or 5.4%, from $3,443.3 million a year earlier. Worldwide organic revenue growth contributed $136.9 million, or 4.0%, led by increased client spending in Advertising & Media, Precision Marketing, Experiential, and Healthcare. Operating income rose to $478.9 million from $346.5 million, with operating margin of 13.2% versus 10.1%. The prior-year quarter included $119.2 million of real estate repositioning costs, so the comparison is flattered by that non-recurring charge. Net income attributable to Omnicom Group Inc. was $318.6 million, or $1.59 per diluted share, compared with $227.5 million, or $1.11 per diluted share, in the prior year quarter. EBITA rose to $500.4 million, with an EBITA margin of 13.8%. Cash flow and balance sheet trends were weaker. Net cash used in operating activities was $618.5 million, driven by a $1.0 billion use of operating capital, and cash and cash equivalents fell to $3,172.8 million from $4,432.0 million at December 31, 2023. Net debt increased to $3,089.7 million from $1,218.5 million. The increase reflects the Flywheel Digital acquisition for approximately $845 million and the issuance of €600 million 3.70% Senior Notes due 2032, which netted $643.1 million. Long-term debt rose to $5,501.0 million on the balance sheet. The company stated it was in compliance with its 3.5 times leverage covenant, with a Leverage Ratio of 2.5 times at March 31, 2024. The company repurchased $181.9 million of common stock in the quarter and declared dividends of $0.70 per share. Management stated that operating cash flow and existing cash will be sufficient to meet non-discretionary cash requirements for the next twelve months, and that its Credit Facility and Term Loan Facility are available for longer-term needs.

    Apr 17, 2024
  10. 2023-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2023

    Omnicom Group Inc. reported third-quarter 2023 revenue of $3,578.1 million, up 3.9% from $3,443.4 million a year earlier, with organic revenue growth of $113.1 million, or 3.3%. Operating income rose $14.8 million to $560.8 million, though operating margin edged down to 15.7% from 15.9%. Net income attributable to Omnicom was $371.9 million, and diluted EPS was $1.86 versus $1.77. For the nine months, revenue rose 2.0% to $10,631.3 million and diluted EPS was $4.78, compared with $4.27. Nine-month results were reduced by $112.7 million in net pretax charges, including real estate and other repositioning costs of $191.5 million partly offset by a $78.8 million gain on the disposition of a research business. Those items reduced diluted EPS by $0.44. Cash and cash equivalents fell to $2,769.6 million from $4,281.8 million at December 31, 2022, as operating activities used $379.1 million, mainly for operating capital of $1.7 billion. Net debt increased to $2,817.0 million from $1,251.6 million. Omnicom repurchased $564.3 million of common stock during the nine months and paid $424.0 million in common dividends. The Credit Facility was amended in June 2023 to extend its termination date to June 2, 2028, and no borrowings or commercial paper were outstanding at September 30, 2023. The company stated it was in compliance with its 3.5 times leverage covenant, with a Leverage Ratio of 2.4 times. The filing also describes generative AI partnerships entered into in the second quarter of 2023 and flags them as a new risk factor. Goodwill was tested as of May 1, 2023, and was not impaired.

    Oct 18, 2023
  11. 2023-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2023

    Omnicom Group Inc. reported second-quarter 2023 revenue of $3,609.9 million, up from $3,567.2 million a year earlier, and first-half revenue of $7,053.2 million versus $6,977.5 million. Operating income for the quarter rose to $550.7 million from $541.6 million, while six-month operating income was $897.2 million versus $894.6 million. Diluted net income per share was $1.82 for the quarter, up from $1.68, and $2.92 for the six months, up from $2.51. The company cites organic revenue growth of $121.4 million (3.4%) for the quarter, partly offset by foreign exchange and disposition effects, and it recorded real estate and other repositioning costs of $191.5 million in the first six months, which reduced diluted EPS by $0.44 on a six-month basis. Balance sheet liquidity declined over the first half. Cash and cash equivalents fell to $2,734.1 million from $4,281.8 million at December 31, 2022, and net cash used in operating activities was $784.6 million, driven by a $1,664.8 million use of operating capital. Net debt rose to $2,824.2 million from $1,251.6 million. Shareholders bought back $543.6 million of treasury stock in the first half, and common dividends declared were $1.40 per share. The company stated it was in compliance with its 3.5 times leverage covenant, with a leverage ratio of 2.4 times, and that no borrowings were outstanding under its $2.5 billion revolving credit facility at June 30, 2023. The filing also discloses that the company completed its annual goodwill impairment test as of May 1, 2023 without finding impairment, and it entered into strategic partnerships with AI technology companies in the second quarter. Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2023.

    Jul 19, 2023
  12. 2023-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2023

    Omnicom Group Inc. reported first-quarter 2023 revenue of $3,443.3 million, up slightly from $3,410.3 million a year earlier. Organic revenue growth was $178.7 million, or 5.2%, offset by a $110.0 million, or 3.2%, foreign exchange headwind and a $35.7 million, or 1.0%, net reduction from acquisitions and dispositions. Operating income declined 1.8% to $346.5 million, reflecting a $119.2 million pretax real estate repositioning charge tied to the company's shift to a hybrid working model. Net income attributable to Omnicom rose to $227.5 million from $173.8 million, and diluted EPS increased to $1.11 from $0.83, helped by lower income tax expense and higher interest income, and by a smaller share count after buybacks. Cash flow was weaker. Net cash used in operating activities was $522.1 million, driven by a $951.0 million use of operating capital, and cash and cash equivalents fell to $3,261.5 million from $4,281.8 million at December 31, 2022. Net debt rose to $2,279.0 million from $1,251.6 million. Omnicom repurchased $305.1 million of common stock and paid $142.3 million in common dividends. The company stated it was in compliance with its 3.5 times leverage covenant, with a Leverage Ratio of 2.4 times at March 31, 2023, and it had no borrowings under its $2.5 billion revolving credit facility during the quarter. The filing reports that the company's disclosure controls and internal control over financial reporting were effective as of March 31, 2023, and that legal proceedings are not expected to have a material adverse effect. Management also expects foreign exchange to reduce second-quarter revenue by approximately 0.5% and the net impact of foreign exchange and acquisitions/dispositions to reduce revenue by 1.0% for the second quarter and for the full year 2023.

    Apr 19, 2023
  13. 2022-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2022

    Omnicom Group Inc. reported third-quarter 2022 revenue of $3,443.4 million, roughly flat versus $3,435.0 million a year earlier, with organic growth of $257.7 million, or 7.5%, offset by foreign exchange reducing revenue $216.6 million, or 6.3%, and acquisitions net of dispositions reducing revenue $32.7 million, or 1.0%. Third-quarter net income attributable to Omnicom rose to $364.5 million from $355.6 million, and diluted EPS increased to $1.77 from $1.65. Operating profit was $546.0 million with an operating margin of 15.9%, compared with 15.8% a year earlier. For the nine months, results were weaker. Revenue was $10,420.9 million versus $10,433.6 million, and net income attributable to Omnicom fell to $886.7 million from $991.6 million, with diluted EPS of $4.27 versus $4.58. The decline reflects $113.4 million of pretax charges tied to the war in Ukraine, recorded in the first quarter of 2022 mainly from the disposal of the Russian businesses, and the absence of a prior-year $50.5 million disposition gain. Operating cash flow was negative at $250.6 million, driven by a $1,483.1 million use of operating capital, and cash and cash equivalents fell to $3,198.5 million from $5,316.8 million at year-end 2021. Net debt rose to $2,167.4 million from $378.5 million. The company stated it was in compliance with its 3.5x leverage covenant, with a ratio of 2.3 times at September 30, 2022. It repurchased $502.2 million of common stock in the nine months and paid $437.7 million in common dividends. The company also said it expects foreign exchange to reduce revenue by approximately 5.25% for the full year 2022.

    Oct 19, 2022
  14. 2022-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2022

    Omnicom Group Inc. reported revenue of $3,567.2 million for the quarter ended June 30, 2022, a slight decrease from $3,571.6 million in the prior-year quarter. Organic growth added $403.8 million (11.3%), offset by foreign exchange rate changes that reduced revenue $168.4 million (4.7%) and net acquisition/disposition effects that reduced revenue $239.8 million (6.7%). Operating profit fell $26.8 million to $541.6 million, with operating margin of 15.2% versus 15.9%. Net income attributable to Omnicom was $348.4 million, roughly flat, and diluted EPS rose to $1.68 from $1.60, helped by a lower weighted average share count from resumed buybacks. For the six months ended June 30, 2022, results were more affected by the war in Ukraine. The company recorded $113.4 million of pretax charges in the first quarter tied to the sale or disposal of all its Russian businesses and the suspension of Ukrainian operations. Six-month net income attributable to Omnicom declined $113.8 million to $522.2 million, and diluted EPS fell to $2.51 from $2.93. Operating cash flow was negative $739.9 million, driven by a $1,507.6 million use of operating capital, and cash and cash equivalents declined to $3,205.1 million. Net debt rose to $2,235.8 million from $378.5 million at December 31, 2021. The company stated it was in compliance with its 3.5x leverage covenant, with a leverage ratio of 2.4 times at June 30, 2022. Goodwill of $9,701.8 million was not impaired under the annual test. Management expects the foreign exchange impact to reduce third-quarter revenue by approximately 6% and full-year revenue by approximately 4.5%.

    Jul 20, 2022
  15. 2022-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2022

    Omnicom Group Inc. reported first-quarter 2022 revenue of $3.41 billion, down $16.6 million, or 0.5%, from $3.43 billion a year earlier. Organic growth added $408.0 million, or 11.9%, while acquisitions net of dispositions reduced revenue by $339.6 million, or 9.9%, and foreign exchange reduced it by $85.0 million, or 2.5%. Operating profit fell $112.4 million to $353.0 million, with operating margin at 10.4% versus 13.6%. Net income attributable to Omnicom Group Inc. was $173.8 million, or $0.83 per diluted share, compared with $287.8 million, or $1.33, a year earlier. The results include $113.4 million of pretax charges arising from the war in Ukraine, primarily the net investment in Russian businesses, which the company has sold or committed to dispose of. Cash flow was weaker. Net cash used in operating activities was $544.5 million, driven by $884.2 million of operating capital use, and cash and cash equivalents fell $1,391.3 million to $3.93 billion. Net debt rose $1,262.1 million to $1.64 billion, reflecting working capital needs, $246.6 million of acquisition payments and $300.3 million of share repurchases. The company stated it had no borrowings under its $2.5 billion revolving credit facility and that its Leverage Ratio of 2.4 times was within the 3.0 times covenant. Management expects the tax rate for the rest of 2022 to approximate 26.5%, and it expects foreign exchange and net acquisitions and dispositions to reduce full-year revenue by approximately 2% to 2.5% and 4.5%, respectively. The company stated that it does not expect a material adverse effect from pending legal proceedings.

    Apr 20, 2022
  16. 2021-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2021

    Omnicom Group Inc. reported a sharp recovery in its third-quarter 2021 Form 10-Q as client spending rebounded from the COVID-19 slowdown. Revenue for the three months ended September 30, 2021 was $3,435.0 million, up from $3,206.5 million, and revenue for the nine months was $10,433.6 million, up from $9,414.1 million, a 10.8% increase. Net income attributable to Omnicom was $355.6 million for the quarter ($1.65 diluted EPS) and $991.6 million for the nine months ($4.58 diluted EPS), compared with $547.3 million, or $2.53 per diluted share, in the prior-year nine-month period, which included $277.9 million of COVID-19 repositioning costs. Operating profit for the nine months rose to $1,575.4 million, with operating margin of 15.1% versus 10.5%. Balance sheet and cash flow were mixed. Cash and cash equivalents fell to $4,431.2 million from $5,600.5 million at year-end 2020, driven by $1,010.7 million of operating capital use, $443.0 million of common dividends and $273.2 million of share repurchases. Net debt rose to $850.7 million from $210.7 million at December 31, 2020. Management noted the company issued $800 million of 2.60% Senior Notes due 2031 and used the proceeds, plus cash on hand, to redeem the $1.25 billion 3.625% Senior Notes due 2022, recording a $26.6 million loss on extinguishment. The Credit Facility leverage ratio was 2.2 times against a covenant maximum of 4.0 times. Management expects the full-year 2021 impact from acquisitions and dispositions to reduce revenue by 4%, with organic growth for the full year expected to be marginally below the nine-month organic rate of 10.5%. The company also sold its ICON International specialty media business in the second quarter, recording a $50.5 million pre-tax gain.

    Oct 20, 2021
  17. 2021-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2021

    Omnicom Group Inc. reported a strong second quarter of 2021 as clients substantially increased spending after the COVID-19 slowdown of 2020. Revenue for the three months ended June 30, 2021 was $3.57 billion, up $770.9 million, or 27.5%, from $2.80 billion a year earlier, with organic growth contributing 24.4%. Operating profit rose to $568.4 million from $62.5 million, and operating margin improved to 15.9% from 2.2%. Net income attributable to Omnicom was $348.2 million, or $1.60 per diluted share, compared with a net loss of $24.2 million, or $(0.11) per diluted share, in the prior-year quarter. For the six months, revenue was $6.99 billion, up 12.7%, and net income attributable to Omnicom was $636.0 million, or $2.93 per diluted share. The quarter included a $50.5 million pre-tax gain on the sale of ICON International, a specialty media subsidiary, and a $26.6 million loss on the early redemption of $1.25 billion of 3.625% Senior Notes due 2022, which was funded by the April 2021 issuance of $800 million of 2.60% Senior Notes due 2031. Together these items increased net income by $31.0 million, or $0.14 per diluted share, for the quarter. Balance sheet and liquidity remained solid. Cash and cash equivalents were $4.39 billion at June 30, 2021, down from $5.60 billion at December 31, 2020, as operating cash flow was negative $295.7 million for the six months due to working capital needs. Net debt rose to $921.9 million from $210.7 million at year-end 2020. The company's Leverage Ratio was 2.2 times against a covenant maximum of 4.0 times, and it had a $2.5 billion revolving credit facility maturing in February 2025. Dividends declared were $0.70 per share in the quarter, and the company resumed share repurchases in the second quarter.

    Jul 20, 2021
  18. 2021-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2021

    Omnicom Group Inc. reported first-quarter 2021 revenue of $3,426.9 million, up $20.0 million, or 0.6%, from $3,406.9 million a year earlier. The filing attributes the increase mainly to favorable foreign exchange rate impact (2.8%), partly offset by negative organic growth of 1.8% and a 0.4% reduction from acquisitions net of dispositions. Management says the COVID-19 impact appears to be moderating in several markets and expects positive organic revenue growth beginning in the second quarter and for the full year. Operating profit rose to $465.4 million from $420.2 million, with operating margin of 13.6% versus 12.3%, and net income attributable to Omnicom was $287.8 million, or $1.33 per diluted share, compared with $258.1 million, or $1.19 per diluted share. Liquidity remained solid but working-capital-driven. Cash and cash equivalents fell to $4,897.3 million from $5,600.5 million, as operating cash use of $460.9 million, mainly from $843.5 million of operating capital use, was the main driver. Net debt rose to $863.0 million from $210.7 million at year-end 2020, but it was down from $2,410.2 million a year earlier. The company reported no commercial paper or borrowings under its $2.5 billion Credit Facility at March 31, 2021, and it was in compliance with its leverage covenant at 2.8 times against a 4.0 times maximum. Management also said it expects to resume share repurchases at some point in 2021, depending on how COVID-19 effects stabilize. The filing shows continued discipline on costs and a mixed recovery by discipline and region. Occupancy and other costs fell 5.8%, and SG&A fell 17.5%, while CRM Experiential revenue declined 33.2% organically and CRM Execution & Support declined 13.3%. Advertising and CRM Precision Marketing grew. Asia-Pacific revenue rose $40.7 million, while North America declined $24.8 million.

    Apr 20, 2021
  19. 2020-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2020

    Omnicom Group Inc. reported third-quarter 2020 revenue of $3,206.5 million, down $417.3 million, or 11.5%, from $3,623.8 million in the third quarter of 2019, with organic growth decreasing revenue 11.7%. Net income attributable to Omnicom was $313.3 million, or $1.45 per diluted share, versus $290.2 million, or $1.32 per diluted share, a year earlier. The filing states that the third-quarter results include a net after-tax increase of $52.3 million ($0.24 per diluted share) from reimbursements and tax credits under government programs in several countries. For the nine months, revenue decreased $1,398.4 million, or 12.9%, to $9,414.1 million, and net income attributable to Omnicom fell $376.8 million to $547.3 million, or $2.53 per diluted share. The nine-month results include a $277.9 million pre-tax repositioning charge recorded in the second quarter, partially offset by $117.8 million of government reimbursements and tax credits. The company's liquidity position changed during the period. Operating cash flow was negative, with cash used in operating activities of $661.4 million for the nine months, driven by $1.8 billion of operating capital use. Cash and cash equivalents fell to $3,278.3 million from $4,305.7 million at year-end 2019, and long-term debt rose to $5,761.5 million. Omnicom issued $600 million of 2.45% Senior Notes due 2030 and $600 million of 4.20% Senior Notes due 2030, redeemed the $600 million 4.45% Senior Notes due 2020, entered a $400 million 364-day credit facility, and suspended share repurchases in March 2020. Net debt was $2,506.8 million at September 30, 2020, compared with $835.1 million at December 31, 2019. On October 26, 2020, the company amended its credit facilities to raise the maximum Leverage Ratio covenant from 3.5 times to 4.0 times, and the filing reports a Leverage Ratio of 2.9 times at September 30, 2020. Management states that it expects negative organic growth and an overall decline in revenue for 2020 compared with 2019, and that the pandemic's negative effect on revenue will continue through the remainder of the year. Management also says it expects second-half operating margins to be in line with the prior year, supported by cost actions that reduced headcount by over 6,000.

    Oct 27, 2020
  20. 2020-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2020

    Omnicom Group Inc. reported a sharp revenue decline and a net loss for the second quarter of 2020 as the COVID-19 pandemic reduced client spending. Revenue for the quarter was $2,800.7 million, down $919.1 million, or 24.7%, from $3,719.8 million a year earlier, with negative organic growth of 23.0%. For the six months, revenue fell $981.1 million, or 13.6%, to $6,207.6 million. The company recorded a pre-tax charge of $277.9 million for repositioning costs and net loss on dispositions, which produced a second-quarter net loss attributable to Omnicom of $24.2 million, or $(0.11) per diluted share, versus net income of $370.7 million a year earlier. Six-month net income attributable to Omnicom was $234.0 million, or $1.08 per diluted share. Management states that the second quarter was expected to be the low point for the year, while second-half results are still expected to be lower than the prior year period. On the balance sheet and liquidity side, the company issued $600 million of 2.45% Senior Notes due 2030 in February 2020 and $600 million of 4.20% Senior Notes due 2030 in April 2020, using proceeds to redeem the $600 million 4.45% Notes due August 2020. Omnicom now has no notes maturing until May 2022, added a $400 million 364-day credit facility, and retains a $2.5 billion multi-currency credit facility extended to February 2025. Cash and cash equivalents fell to $3,281.0 million from $4,305.7 million at year-end 2019, while long-term debt rose to $5,714.1 million. Cash used in operating activities was $862.2 million for the six months, driven by a $1.6 billion use of operating capital, and share repurchases were suspended in March 2020. The company was in compliance with its leverage covenant, with a Leverage Ratio of 2.9 times against a 3.5 times maximum. The company also took repositioning actions that reduced headcount by over 6,000 and facility requirements, and it recorded no goodwill impairment at June 30, 2020, though it noted that a decline of approximately 20% in one reporting unit's fair value would trigger a failed impairment test. Management expects these actions to reduce future operating expenses and expects second-half margins to be in line with the prior year.

    Jul 28, 2020
  21. 2020-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2020

    Omnicom Group Inc. reported first-quarter 2020 revenue of $3,406.9 million, down $62.0 million, or 1.8%, from $3,468.9 million in the first quarter of 2019. Net income attributable to Omnicom fell to $258.1 million from $263.2 million, and diluted EPS was $1.19 versus $1.17. Management states that the COVID-19 pandemic reduced client demand beginning late in the first quarter, with a revenue reduction expected to continue for the rest of 2020 and the effects possibly being material. The company expects negative organic growth and negative overall revenue growth for 2020 compared with 2019. Cash flow was weak in the quarter. Net cash used in operating activities was $987.2 million, driven by $1.3 billion of operating capital use, and cash and cash equivalents fell to $2,692.5 million from $4,305.7 million at year-end 2019. Net debt rose to $2,410.2 million from $835.1 million at December 31, 2019. Management responded by issuing $600 million of 2.45% notes due 2030 in February, using the proceeds to redeem the $600 million 4.45% notes due 2020, issuing $600 million of 4.20% notes due 2030 in April, and entering a new $400 million 364-day credit facility. Share repurchases were suspended in March 2020. The company also recorded a non-cash after-tax charge of $3.9 million on an equity method investment and tested goodwill and intangibles for impairment after a share price decline. It concluded that goodwill was not impaired at March 31, 2020, but warned that further economic deterioration could lead to an impairment charge. The filing notes that the Credit Facility leverage ratio was 2.1 times against a 3.5 times covenant limit.

    Apr 28, 2020
  22. 2019-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2019

    Omnicom Group Inc. reported third-quarter 2019 revenue of $3.62 billion, down 2.4% from $3.71 billion a year earlier, with organic growth of 2.2% offset by a 1.5% foreign exchange headwind and a 3.1% acquisition and disposition headwind. Operating profit fell to $473.3 million from $502.3 million, and operating margin was 13.1% versus 13.5%. Net income attributable to Omnicom Group was $290.2 million, down 2.9%, while diluted EPS was $1.32, unchanged year over year. For the nine months, revenue was $10.81 billion, down 3.5%, and diluted EPS rose 2.7% to $4.17, helped by lower weighted average shares from repurchases. The balance sheet shows cash and cash equivalents of $2.44 billion at September 30, 2019, down from $3.65 billion at December 31, 2018. Net cash used in operating activities was $231.9 million for the nine months, driven by a $1.44 billion use of operating capital, which the filing describes as typical for the period. Total debt rose to $5.12 billion, and net debt increased to $2.67 billion from $1.23 billion at year-end 2018. The company issued €1 billion of Euro Notes in July 2019, used the proceeds to retire $500 million of 2019 notes and partially redeem $400 million of 2020 notes, and reported compliance with its credit facility covenants, with a Leverage Ratio of 2.2 times and an Interest Coverage Ratio of 9.6 times. Management expects organic revenue to increase modestly for the rest of 2019 and expects net disposition activity to reduce revenue by 1.5% in the fourth quarter and 3% for the full year. The company adopted ASC 842 on January 1, 2019, recognizing $1.38 billion of operating lease right-of-use assets, and it reported no material changes to risk factors from its 2018 Form 10-K.

    Oct 15, 2019
  23. 2019-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2019

    Omnicom Group Inc. reported second-quarter 2019 revenue of $3,719.8 million, down 3.6% from $3,859.6 million a year earlier. Foreign exchange reduced revenue by 2.6%, acquisition revenue net of dispositions reduced it by 3.8%, and organic growth added 2.8%. Net income attributable to Omnicom was $370.7 million, up 1.8% from $364.2 million, and diluted EPS rose 5.0% to $1.68. For the six months, revenue fell 4.0% to $7,188.7 million, while operating margin improved to 13.9% from 13.4% and EBITA margin to 14.5% from 14.1%. CRM Execution & Support was the weakest discipline, with revenue down 34.6% in the quarter and 32.9% for the six months, while Healthcare and Advertising grew. Balance sheet and liquidity moved mainly on seasonal working capital. Cash and cash equivalents fell to $2,898.1 million from $3,652.4 million at December 31, 2018, and net cash used in operating activities was $492.9 million for the six months, driven by a $1,306.6 million use of operating capital. Net debt rose to $2,630.4 million from $1,233.9 million. The company adopted ASC 842 on January 1, 2019, recording $1,490.1 million of operating lease right-of-use assets and related liabilities. It reported a leverage ratio of 2.4 times against a covenant maximum of 3 times, and an interest coverage ratio of 9.6 times against a minimum of 5 times. Subsequent to quarter-end, Omnicom issued €1.0 billion of senior notes in July 2019 with a U.S. dollar equivalent of net proceeds of $1.1 billion. It also announced the partial redemption of $400 million of its 4.45% Senior Notes due 2020 on August 1, 2019. The company repurchased 3,045,846 shares in the second quarter at an average price of $79.28, and management expects organic revenue to increase modestly for the rest of 2019.

    Jul 17, 2019
  24. 2019-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2019

    Omnicom Group Inc. reported first-quarter 2019 revenue of $3,468.9 million, down $160.7 million, or 4.4%, from $3,629.6 million a year earlier. The decline reflected foreign exchange rate changes, which reduced revenue by $122.0 million (3.4%), and acquisition revenue net of disposition revenue, which reduced revenue by $130.1 million (3.6%). Organic growth added $91.4 million (2.5%). Despite lower revenue, operating profit rose to $428.9 million from $421.7 million, and operating margin improved to 12.4% from 11.6%. Net income attributable to Omnicom was $263.2 million, down $0.9 million, or 0.3%, while diluted earnings per share rose 2.6% to $1.17, helped by fewer weighted average shares outstanding after share repurchases. Cash flow was seasonally weak. Operating activities used $395.6 million of cash, including a $736.3 million use of operating capital, and net debt increased to $2,042.1 million from $1,233.9 million at December 31, 2018. Short-term debt rose to $595.4 million, mainly due to €520 million of short-term senior notes issued by Omnicom Finance Limited that mature on August 14, 2019. Omnicom stated it was in compliance with its Credit Facility covenants, with a Leverage Ratio of 2.3 times and an Interest Coverage Ratio of 9.8 times, and it had $3,979.3 million of available and unused credit lines. Management expects organic revenue to increase modestly for the remainder of 2019. It expects foreign exchange to reduce revenue by approximately 1.5% for the year and 2.5% in the second quarter, and a net reduction to revenue from disposition activity of 3% for the current year. The company also adopted ASC 842 on January 1, 2019, which added $1,298.8 million of operating lease right-of-use assets and a $1,218.0 million long-term operating lease liability to the balance sheet, with no impact on results of operations.

    Apr 16, 2019
  25. 2018-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2018

    Omnicom Group Inc. reported third-quarter 2018 revenue of $3,714.3 million, essentially flat versus $3,719.5 million a year earlier, while net income attributed to Omnicom rose to $298.9 million from $263.6 million and diluted EPS rose to $1.32 from $1.13. The quarter included a net gain of $178.4 million, primarily from the sale of Sellbytel, offset by repositioning charges of $149.4 million, and an additional $28.9 million of income tax expense tied to a revision of the provisional estimate of the Tax Act. For the nine months, revenue increased $106.4 million, or 1.0%, to $11,203.5 million, and diluted EPS was $4.06 versus $3.55. Excluding the gain, repositioning actions and the Tax Act revision, the company states that Q3 2018 net income would have been $280.7 million and diluted EPS $1.24. Cash flow and liquidity were seasonal. Net cash used in operating activities was $238.6 million for the nine months, driven by a $1.4 billion use of operating capital, and cash and cash equivalents fell to $2,099.1 million from $3,796.0 million at year-end 2017. Net debt rose to $2,762.7 million from $1,128.3 million at December 31, 2017. The company stated it was in compliance with its Credit Facility covenants, with a Leverage Ratio of 2.0 times and an Interest Coverage Ratio of 10.2 times, and it had $3,749.5 million of available and unused credit lines. Management expects revenue to increase modestly for the rest of 2018, with a net reduction from dispositions of 2.5% to 3% in the fourth quarter and 2.25% for the full year. The company also expects a reduction of approximately 3% in the first half of 2019. Adoption of ASC 606 reduced nine-month revenue by $108.5 million but had no impact on operating profit. The filing notes an ongoing U.S. Department of Justice Antitrust Division investigation of video production and post-production practices, which management does not currently believe will have a material adverse effect.

    Oct 16, 2018
  26. 2018-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2018

    Omnicom Group Inc. reported second-quarter 2018 revenue of $3,859.6 million, up 1.8% from $3,790.1 million in the second quarter of 2017, with organic growth of 2.0%. Net income attributable to Omnicom rose 10.8% to $364.2 million, and diluted earnings per share increased 14.3% to $1.60. For the six months ended June 30, 2018, revenue was $7,489.2 million (up 1.5%) and diluted EPS was $2.73 (up 12.8%). The filing notes that adoption of ASC 606 reduced six-month revenue by $91.4 million, while the impact on operating profit was an increase of $14.0 million; the effect on net income and diluted EPS was not material. Balance sheet and cash flow show seasonal working capital pressure. Cash and cash equivalents fell to $1,913.3 million from $3,796.0 million at December 31, 2017, and net cash used in operating activities was $572.9 million for the six months, driven by a $1.4 billion use of operating capital that the company says typically occurs in the first half. Net debt rose to $2,968.9 million from $1,128.3 million at year-end. Management reiterated that it expects revenue to increase modestly for the remainder of 2018, and disclosed planned dispositions, primarily in CRM Execution & Support, expected to reduce revenue by roughly 2.5% for the full year, partly offset by acquisitions and cost-reduction activity. Liquidity remains substantial, with a $2.5 billion revolving credit facility expiring July 31, 2021, $1.2 billion of uncommitted credit lines and capacity for up to $2 billion of commercial paper, none of which was outstanding at June 30, 2018. The company reported a Leverage Ratio of 2.1 times and an Interest Coverage Ratio of 10.3 times, both within covenant limits. During the first half, Omnicom repurchased $469.2 million of common stock and paid $278.1 million in dividends to common shareholders, and it disclosed a Department of Justice Antitrust Division investigation into video production practices, which management does not currently expect to have a material adverse effect.

    Jul 17, 2018
  27. 2018-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2018

    Omnicom Group Inc. reported first-quarter 2018 revenue of $3,629.6 million, up $42.2 million, or 1.2%, from $3,587.4 million in the first quarter of 2017. Foreign exchange rate changes increased revenue by $151.1 million, while acquisition revenue, net of dispositions, reduced revenue by $153.3 million and organic growth added $86.9 million. The adoption of ASC 606 reduced revenue by $42.5 million. Operating profit rose to $421.7 million from $415.7 million, with operating margin unchanged at 11.6%. Net income attributable to Omnicom Group Inc. increased to $264.1 million from $241.8 million, and diluted earnings per share rose to $1.14 from $1.02. The effective tax rate fell to 24.3% from 29.2%, primarily due to the reduction in the U.S. federal statutory rate under the Tax Act. Cash flow was seasonally weak in the quarter. Net cash used in operating activities was $620.8 million, driven by a $996.1 million use of operating capital, which typically occurs in the first half of the year. Cash and cash equivalents fell to $2,568.1 million from $3,796.0 million at December 31, 2017, and net debt rose to $2,323.6 million from $1,128.3 million. The company repurchased $232.7 million of common stock and paid $138.9 million in common dividends, with dividends declared at $0.60 per share compared with $0.55 a year earlier. Liquidity remained substantial, with $3,707.4 million of available and unused credit lines, and the company reported compliance with its credit facility covenants, including a leverage ratio of 2.1 times. Management expects revenue to increase modestly in 2018 excluding foreign exchange effects, and expects ASC 606 to reduce full-year revenue by approximately $150 million with an immaterial impact on operating profit. 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.

    Apr 17, 2018
  28. 2017-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2017

    Omnicom Group Inc. reported third-quarter 2017 revenue of $3,719.5 million, down 1.9% from $3,791.1 million a year earlier, with organic growth of 2.8% offset by acquisition and disposition activity (a net reduction of $216.4 million, or 5.7%) and a favorable foreign exchange impact of 1.0%. Operating profit rose 2.4% to $464.2 million and the operating margin improved to 12.5% from 12.0%. Net income attributable to Omnicom Group Inc. increased 3.9% to $263.6 million, and diluted earnings per share rose 6.6% to $1.13. For the nine months, revenue was $11,097.1 million, down 0.7%, while net income attributable to Omnicom rose 4.5% to $834.0 million and diluted EPS rose 7.3% to $3.55. Cash flow was seasonally negative in the first nine months, with net cash used in operating activities of $156.0 million, driven by a $1.3 billion increase in operating capital. Cash and cash equivalents fell to $1,843.0 million from $3,002.2 million at year-end 2016, and net debt rose to $3,115.1 million from $1,926.5 million. The company repurchased $522.3 million of common stock and paid $387.9 million in common dividends during the period. Management stated it was in compliance with its credit facility covenants, with a leverage ratio of 2.2 times and an interest coverage ratio of 10.5 times, and expects its operating cash flow to cover non-discretionary and discretionary needs for the next twelve months. Management expects 2017 organic revenue growth to increase modestly above weighted average nominal GDP growth in its major markets, and expects the net revenue impact of acquisitions and dispositions to be approximately 4% for the full year. The company disclosed that two subsidiaries received U.S. Department of Justice Antitrust Division subpoenas in December 2016 regarding video production and post-production practices, and stated it does not currently believe the investigation will have a material adverse effect.

    Oct 17, 2017
  29. 2017-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2017

    Omnicom Group Inc. reported second-quarter 2017 revenue of $3,790.1 million, a decrease of 2.4% from $3,884.9 million in the second quarter of 2016. The filing attributes the decline to foreign exchange rate changes (which reduced revenue 1.5%) and acquisition/disposition activity (which reduced revenue 4.4%, principally from the sale of its specialty print media business), partially offset by organic growth of 3.5%. Operating profit rose to $565.5 million from $561.8 million, lifting operating margin to 14.9% from 14.5%, and net income attributable to Omnicom Group Inc. increased 0.8% to $328.6 million. Diluted EPS was $1.40, up from $1.36. For the six months ended June 30, 2017, revenue was $7,377.6 million, down 0.1%, with organic growth of 3.9%. Diluted EPS rose 7.6% to $2.42, and net income attributable to Omnicom increased 4.8% to $570.4 million. Operating margin improved to 13.2% from 12.9%. The filing notes that cash used in operating activities was $331.0 million for the period, driven by a seasonal $1.1 billion increase in operating capital, which pushed net debt up $1.1 billion from year-end 2016 to $3,074.9 million. Cash and cash equivalents stood at $1,834.0 million at June 30, 2017. Liquidity remains solid, with a $2.5 billion revolving credit facility, $1.1 billion of uncommitted credit lines, and capacity to issue up to $2 billion of commercial paper, with no borrowings outstanding at quarter-end. The company reported a Leverage Ratio of 2.2 times against a 3 times covenant and an Interest Coverage Ratio of 10.8 times against a 5 times minimum. The company also disclosed that it received DOJ Antitrust Division subpoenas in December 2016 related to video production practices, which it does not expect to have a material adverse effect.

    Jul 20, 2017
  30. 2017-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2017

    Omnicom Group Inc. reported first-quarter 2017 revenue of $3,587.4 million, up 2.5% from $3,499.1 million in the first quarter of 2016. Organic growth contributed 4.4%, while foreign exchange reduced revenue by 1.2% and net acquisition/disposition activity reduced revenue by 0.7%. Operating profit rose to $409.9 million from $392.1 million, with operating margin of 11.4% versus 11.2%. Net income attributable to Omnicom Group Inc. increased to $241.8 million from $218.4 million, and diluted earnings per share rose to $1.02 from $0.90. The company expects 2017 revenue to increase modestly in excess of weighted average nominal GDP growth in its major markets, excluding currency effects. Cash flow was seasonally negative, with net cash used in operating activities of $195.3 million, driven by a $550.6 million operating capital outflow that the filing says typically occurs in the first half of the year. Cash and cash equivalents fell to $2,442.2 million from $3,002.2 million at December 31, 2016. Net debt rose to $2,457.3 million from $1,926.5 million. The company repurchased $234.7 million of common stock and paid $130.8 million in common dividends during the quarter. Liquidity remains supported by a $2.5 billion revolving credit facility expiring July 31, 2021, $1.1 billion of uncommitted credit lines, and capacity to issue up to $2 billion of commercial paper, with no borrowings outstanding at quarter end. The filing states that the company was in compliance with its credit facility covenants, with a Leverage Ratio of 2.2 times against a 3 times maximum and an Interest Coverage Ratio of 10.9 times against a 5 times minimum. The U.S. Department of Justice Antitrust Division has subpoenaed two subsidiaries in an investigation of video production and post-production practices, and the company does not currently believe it will have a material adverse effect.

    May 10, 2017
  31. 2016-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2016

    Omnicom Group Inc. reported third-quarter 2016 revenue of $3,791.1 million, up 2.3% from $3,706.6 million a year earlier, with organic growth of 3.2%. Net income attributable to Omnicom Group Inc. rose 6.1% to $253.8 million, and diluted earnings per share increased 9.3% to $1.06. For the nine months, revenue was $11,175.1 million, up 1.8%, while net income attributable to the company was $798.3 million, up 4.7%, and diluted EPS was $3.31, up 8.2%. Operating margin improved to 12.0% in the quarter and 12.6% for the nine months. Foreign exchange headwinds reduced nine-month revenue by $209.1 million, and management expects the full-year FX impact to reduce revenue by approximately 1.75%. Balance sheet and liquidity shifted during the period. Omnicom issued $1.4 billion of 3.60% Senior Notes due 2026 in April and used part of the proceeds to repay the $1 billion 5.9% notes that matured in April 2016. Long-term debt rose to $5,007.3 million from $3,564.2 million at year-end 2015. Cash and cash equivalents fell to $1,936.6 million from $2,605.2 million, mainly because of a seasonal $784.1 million use of operating capital. Net debt was $3,063.3 million at September 30, 2016, compared with $1,951.1 million at December 31, 2015. The company stated it was in compliance with its credit facility covenants, with a Leverage Ratio of 2.2 times and an Interest Coverage Ratio of 11.1 times. During the nine months, the company spent $463.8 million on share repurchases and $374.2 million on dividends to common shareholders. Goodwill rose to $9,046.1 million, reflecting acquisitions. Management noted economic uncertainty tied to the U.K.'s vote to exit the European Union, the upcoming U.S. elections, Brazil's downturn, and Euro Zone weakness, but expects 2016 revenue to increase modestly above weighted average nominal GDP growth in its major markets.

    Oct 19, 2016
  32. 2016-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2016

    Omnicom Group Inc. reported revenue of $3,884.9 million for the second quarter of 2016, up 2.1% from $3,805.3 million a year earlier, and $7,384.0 million for the first six months, up 1.5%. Foreign exchange reduced revenue by 1.6% in the quarter and 2.2% for the six months, while organic growth added 3.4% and 3.6%, respectively. Operating income rose to $561.8 million in the quarter from $538.6 million, and net income attributed to Omnicom Group Inc. increased to $326.1 million from $313.9 million. Diluted EPS was $1.36 for the quarter, up from $1.26, and $2.25 for the six months, up from $2.09. Cash flow and balance sheet trends were weaker. Net cash used in operating activities was $391.1 million for the first six months of 2016, compared with $52.0 million used a year earlier, driven by $1.1 billion of cash used for operating capital. Cash and cash equivalents fell to $1,305.7 million from $2,605.2 million at year-end 2015, and net debt rose to $3,497.2 million from $1,951.1 million. The company issued $1.4 billion of 3.60% Senior Notes due 2026 in April 2016 and used part of the proceeds to repay $1 billion of 5.9% notes maturing in April 2016. Management stated it expects 2016 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 revenue by approximately 1.5% for the year. The company stated it was in compliance with its Credit Facility covenants, with a Leverage Ratio of 2.2 times and an Interest Coverage Ratio of 11.4 times at June 30, 2016.

    Jul 19, 2016
  33. 2016-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2016

    Omnicom Group Inc. reported first-quarter 2016 revenue of $3,499.1 million, up 0.9% from $3,469.2 million in the first quarter of 2015. Foreign exchange changes reduced revenue by $96.6 million (2.8%), acquisitions net of dispositions reduced it by $4.2 million (0.1%), and organic growth added $130.7 million (3.8%). Operating income rose to $392.1 million from $377.7 million, with operating margin at 11.2% versus 10.9%. Net income attributed to Omnicom Group Inc. increased 4.4% to $218.4 million, and diluted earnings per share rose to $0.90 from $0.83. Cash flow was seasonally weak in the quarter. Net cash used in operating activities was $461.2 million, driven by $807.1 million of cash used for operating capital, and cash and cash equivalents fell $857.9 million to $1,747.3 million at March 31, 2016. Net debt increased $950.6 million over the quarter. The company repurchased $207.1 million of common stock and paid $122.2 million in dividends to common shareholders. Management expects 2016 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 revenue by approximately 1.0% for the year. Subsequent to quarter end, Omnicom issued $1.4 billion of 3.60% Senior Notes due 2026 on April 6, 2016, and used a portion of the proceeds to retire its $1 billion 5.9% Senior Notes due April 15, 2016. The company stated it was in compliance with its Credit Facility covenants, with a Leverage Ratio of 2.1 times and an Interest Coverage Ratio of 11.9 times, against limits of 3 times and at least 5 times respectively.

    May 10, 2016
  34. 2015-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2015

    Omnicom Group Inc. reported third-quarter 2015 revenue of $3,706.6 million, down 1.1% from $3,749.6 million in the third quarter of 2014, and nine-month revenue of $10,981.1 million, down 1.3% from $11,122.7 million. The filing attributes the decline mainly to foreign exchange: changes in currency rates reduced revenue by $772.5 million (7%) for the nine months, while organic growth added $610.6 million (5.5%). Net income attributable to Omnicom Group Inc. was $239.3 million for the quarter, down 1.8%, and diluted EPS was $0.97, up from $0.95. For the nine months, net income attributable to Omnicom was $762.3 million and diluted EPS was $3.06, compared with $2.95 a year earlier, helped by a lower share count from repurchases. Operating income for the quarter was $428.3 million, an 11.6% operating margin, unchanged year over year. Operating expenses fell $133.9 million (8.8%) in office and general expenses for the nine months, while salary and service costs rose slightly. Cash flow from operations was $440.8 million for the nine months, after a $670.8 million use of operating capital. Cash and cash equivalents fell to $1,427.5 million from $2,388.1 million at year-end 2014. Current debt rose to $1,003.4 million because the $1 billion 5.9% Senior Notes mature on April 15, 2016. Liquidity remains supported by a $2.5 billion revolving Credit Agreement, extended in July 2015 to July 31, 2020, and $3,767.7 million of available and unused credit lines. The company reported a Leverage Ratio of 2.1 times and an Interest Coverage Ratio of 12.6 times, both within its covenant limits. Share repurchases totaled $507.9 million in the nine months, and dividends declared were $0.50 per quarter.

    Oct 20, 2015
  35. 2015-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2015

    Omnicom Group Inc. reported a soft second quarter and first half of 2015, with revenue declining on currency headwinds. Revenue for the three months ended June 30, 2015 was $3,805.3 million, down 1.7% from $3,870.9 million, while the six-month figure was $7,274.5 million, down 1.3% from $7,373.0 million. The filing states that changes in foreign exchange rates reduced revenue by 7.1% in the quarter and 6.8% for the six months, while organic growth was 5.3% and 5.2%, respectively. Net income attributable to Omnicom Group Inc. fell 3.5% to $313.9 million in the quarter and 1.5% to $523.0 million for the six months, but diluted EPS rose to $1.26 and $2.09 because of share repurchases. Operating margin was flat at 14.2% for the quarter and 12.6% for the six months, and the company cut office and general expenses by $50.9 million in the quarter and $76.8 million for the first half. Cash and cash equivalents fell to $1,356.0 million from $2,388.1 million at year-end 2014, and net cash used in operating activities was $52.0 million for the six months, driven by $808.8 million of operating capital investment. Total debt rose on the balance sheet because the $1,005.1 million current portion of debt includes the 5.9% Senior Notes due 2016. The company reported a leverage ratio of 2.1 times and an interest coverage ratio of 12.9 times, both within covenant limits, and it expects 2015 revenue to increase modestly in excess of nominal GDP growth, excluding currency effects. The company also extended its $2.5 billion Credit Agreement from July 31, 2019 to July 31, 2020, effective July 31, 2015. Management concluded that goodwill was not impaired at June 30, 2015, and that the fair value of each reporting unit was substantially in excess of its book value.

    Jul 21, 2015
  36. 2015-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2015

    Omnicom Group Inc. reported first-quarter 2015 revenue of $3,469.2 million, down $33.0 million, or 0.9%, from $3,502.2 million in the first quarter of 2014. The filing attributes the decline mainly to foreign exchange, which reduced revenue by $226.0 million, or 6.4%. Acquisitions net of dispositions added $14.3 million, or 0.4%, and organic growth added $178.7 million, or 5.1%. Operating income was $377.7 million, flat at a 10.9% operating margin, while EBITA margin rose to 11.7% from 11.6%. Net income attributable to Omnicom Group Inc. rose $3.6 million, or 1.8%, to $209.1 million, and diluted EPS increased 7.8% to $0.83 from $0.77, aided by a lower weighted average share count after share repurchases. Cash flow and liquidity were weaker in the quarter. Net cash used in operating activities was $238.0 million, including $559.5 million of operating capital use, and cash and cash equivalents fell to $1,526.7 million from $2,388.1 million at December 31, 2014. Net debt increased $891.4 million, and the company repurchased $270.7 million of common stock. The company stated it expects 2015 revenue to increase modestly in excess of weighted average nominal GDP growth in its major markets, excluding currency effects, and expects currency to reduce revenue by approximately 6.5% for the year. The balance sheet shows total assets of $20,071.0 million and total equity of $2,832.7 million at March 31, 2015. The Credit Agreement was in compliance with its covenants, with a Leverage Ratio of 2.0 times and an Interest Coverage Ratio of 12.9 times. The company also entered into a $1 billion forward-starting interest rate swap in March 2015 to hedge refinancing of its 5.9% Senior Notes maturing April 15, 2016.

    Apr 21, 2015
  37. 2014-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2014

    Omnicom Group Inc. reported third-quarter 2014 revenue of $3,749.6 million, up 7.4% from $3,490.5 million a year earlier, with organic growth of 6.5%. Net income attributable to Omnicom rose 24.4% to $243.8 million, and diluted EPS increased 28.4% to $0.95. For the first nine months of 2014, revenue grew 5.7% to $11,122.7 million and net income attributable to Omnicom rose 12.1% to $774.5 million, with diluted EPS of $2.95 versus $2.58. Operating margin improved to 11.6% in the quarter from 10.9%, and net interest expense fell to $31.4 million from $42.8 million. The period was shaped by the May 8, 2014 termination of the proposed merger with Publicis Groupe S.A., which had no termination fee. Merger expenses totaled $8.8 million in the first nine months of 2014 versus $28.1 million in the prior-year period, and the company resumed open-market share repurchases in the second quarter. Shareholders' equity fell to $3,038.3 million from $3,582.4 million at December 31, 2013, mainly reflecting treasury stock purchases of $6,817.4 million in total treasury stock and a foreign currency translation loss. Operating cash flow for the nine months was only $33.1 million, as operating capital consumed $1,091.9 million, while cash and cash equivalents declined to $837.7 million from $2,710.5 million. Balance sheet liquidity remained substantial, with $2.5 billion available under the Credit Agreement, which was extended to July 31, 2019, and up to $2.0 billion of commercial paper capacity. The company stated it was in compliance with its covenants, with a Leverage Ratio of 1.7 times against a 3 times limit and an Interest Coverage Ratio of 12 times against a 5 times minimum. The 2032 convertible notes were converted or redeemed in July 2014, eliminating that convertible debt. The company also raised its quarterly dividend to $0.50 per share in May 2014.

    Oct 21, 2014
  38. 2014-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2014

    Omnicom Group Inc. reported second-quarter 2014 revenue of $3,870.9 million, up 6.4% from $3,637.0 million a year earlier, with organic growth of 5.8%. Operating income rose 4.9% to $548.4 million, and net income attributable to Omnicom Group Inc. increased 12.3% to $325.2 million, or $1.23 per diluted share versus $1.09. For the first six months, revenue grew 4.8% to $7,373.0 million and diluted EPS was $2.00 versus $1.85. Operating margin was 14.2% in the quarter versus 14.4% a year earlier, and 12.6% for the six months versus 12.7%. The proposed merger with Publicis Groupe S.A. was terminated on May 8, 2014, with no termination fee payable by either party. Omnicom incurred $8.8 million of merger expenses in the first half of 2014, and the shareholder class actions over the merger were dismissed on May 23, 2014. After the termination, the company resumed open-market share repurchases; it bought 7,884,415 shares in the second quarter, and cash used for repurchases in the first six months was $577.8 million on the cash flow statement. The quarterly dividend was raised to $0.50 per share on May 20, 2014. Liquidity remained substantial, with cash and cash equivalents of $1,534.7 million at June 30, 2014, versus $2,710.5 million at December 31, 2013, and $3,493.3 million of available and unused lines of credit. Operating cash flow was negative $187.5 million for the six months, reflecting $946.9 million of operating capital build, a seasonal pattern the company says normally peaks in the first half. The company stated it was in compliance with its Credit Agreement covenants, with a Leverage Ratio of 1.9 times and an Interest Coverage Ratio of 11.2 times, and that it expects to fund its needs without incurring additional long-term debt in the remainder of 2014.

    Jul 22, 2014
  39. 2014-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2014

    Omnicom Group Inc.'s Form 10-Q for the quarter ended March 31, 2014 reports revenue of $3,502.2 million, up 3.0% from $3,398.9 million in the first quarter of 2013, with organic growth of $147.5 million (4.3%). Operating income rose to $382.7 million from $371.7 million, while net income attributable to Omnicom Group Inc. was $205.5 million versus $205.1 million a year earlier. Diluted EPS was $0.77 compared with $0.76. Excluding $7.0 million of merger expenses, net income was $208.1 million and diluted EPS was $0.80, per the filing's non-GAAP reconciliation. The dominant matter for investors is the pending Business Combination with Publicis Groupe S.A., under which Publicis will merge into Publicis Omnicom Group N.V., and Omnicom will then merge into a wholly owned subsidiary of that holding company. Each Omnicom share would convert into 0.813008 of a Publicis Omnicom Group share, and Omnicom intends to pay a $2.00 per share special dividend before the Omnicom Merger. Completion still requires shareholder approvals, regulatory clearances (China review entered an extended Phase III period effective April 17, 2014), and tax rulings that the parties had not yet obtained. The filing also discloses a consolidated shareholder class action that Omnicom considers without merit. Liquidity remained solid: cash and cash equivalents were $2,082.1 million at March 31, 2014, against $3,778.6 million of long-term notes payable, a $2.5 billion Credit Agreement, and a 1.9 times leverage ratio versus a covenant maximum of 3 times. Operating cash flow was negative $430.3 million due to seasonal working capital needs, and the $252.7 million 2032 Convertible Notes were classified as current because holders may put them for cash on July 31, 2014.

    Apr 22, 2014
  40. 2013-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2013

    Omnicom Group Inc.'s Form 10-Q for the quarter ended September 30, 2013 shows revenue of $3,490.5 million for the third quarter, up 2.5% from $3,406.6 million a year earlier, with organic growth of 4.1%. Net income attributable to Omnicom was $196.0 million, down 3.9% from $203.9 million, and diluted EPS was $0.74 in both periods. For the first nine months, revenue rose 2.4% to $10,526.4 million and diluted EPS rose 3.6% to $2.58. Operating income for the quarter was $379.4 million, and included $28.1 million of merger expenses tied to the pending business combination with Publicis Groupe. Excluding those expenses, the company reported third-quarter net income of $217.7 million and diluted EPS of $0.82. The dominant item for investors is the July 27, 2013 Business Combination Agreement with Publicis Groupe S.A., under which Publicis will merge into Publicis Omnicom Group N.V., a new Dutch holding company, and Omnicom will then merge into a subsidiary of that holding company. Omnicom shareholders would receive 0.813008 of a Publicis Omnicom Group share per Omnicom share, plus a $2.00 special cash dividend. The filing states the transaction will have a material effect on future results and financial position. It also notes shareholder class actions filed in New York state court seeking to enjoin or rescind the combination, which Omnicom says are without merit, and a $500 million termination fee payable to Publicis in certain circumstances. On the balance sheet, cash and cash equivalents fell to $1,521.5 million from $2,678.3 million at year-end 2012, mainly to fund the redemption of convertible notes, which cost $406.1 million in cash plus $0.6 million. Omnicom suspended open-market share repurchases in the third quarter of 2013. Its $2.5 billion Credit Agreement was undrawn at September 30, 2013, and the company reported a Leverage Ratio of 1.9 times against a covenant maximum of 3 times.

    Oct 17, 2013
  41. 2013-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2013

    Omnicom Group Inc. reported revenue of $3,637.0 million for the quarter ended June 30, 2013, up from $3,561.0 million a year earlier, with organic growth adding $99.0 million and foreign exchange reducing revenue by $18.7 million. Operating income rose to $523.0 million from $506.4 million, and net income attributable to Omnicom Group Inc. increased to $289.5 million from $282.7 million. Diluted earnings per share were $1.09 versus $1.02, helped by a lower weighted average share count after repurchases and convertible note conversions. For the six months, revenue was $7,035.9 million and net income attributable to Omnicom was $494.7 million. Cash and cash equivalents fell to $1,399.9 million from $2,678.3 million at December 31, 2012, primarily to fund the redemption of the 2033 and 2038 Convertible Notes, which required $406.1 million in cash for converted principal plus $0.6 million to redeem the remaining notes. Net cash provided by operating activities was $66.5 million for the six months, compared with $157.3 million a year earlier, after a $635.7 million use of operating capital. Long-term notes payable were $3,784.8 million, and the company had $3,470.9 million of available and unused lines of credit, including a $2.5 billion committed Credit Agreement. The company stated it was in compliance with its covenants, with a Leverage Ratio of 1.9 times and an Interest Coverage Ratio of 10.8 times. Management expects 2013 revenue to increase modestly in excess of weighted average nominal GDP growth in its major markets, excluding foreign exchange impacts, and estimates that exchange rates at July 15, 2013 would reduce 2013 revenue by approximately 1%. Goodwill of $8,707.7 million was not impaired at June 30, 2013, with fair values of each reporting unit substantially in excess of book value. The company repurchased 4,356,000 shares in the open market during the second quarter.

    Jul 18, 2013
  42. 2013-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2013

    Omnicom Group Inc. reported first-quarter 2013 revenue of $3,398.9 million, up 2.8% from $3,307.3 million in the first quarter of 2012. The filing attributes 2.9% to organic growth and 0.5% to acquisitions, net of dispositions, offset by a 0.6% negative foreign exchange impact. By geography, revenue rose 4.2% in the United States and 5.7% in the United Kingdom, rose 2.8% in other markets (primarily Asia and Latin America), and fell 3.4% in Euro markets. Operating income was $371.7 million, up from $362.5 million, with operating margin of 10.9% versus 11.0% a year earlier and EBITA margin steady at 11.7%. Net income attributable to Omnicom Group Inc. was $205.1 million versus $204.6 million, and diluted earnings per share rose to $0.76 from $0.72, helped by a lower weighted average share count of 263.2 million diluted shares versus 277.5 million. Cash flow and balance sheet trends were weighted by the seasonal working capital pattern. Net cash used in operating activities was $209.7 million, including $511.8 million used for operating capital, and cash and cash equivalents declined $606.5 million to $2,071.8 million. Interest expense rose to $49.0 million from $38.5 million, primarily due to the 3.625% Senior Notes due 2022 issued in 2012. At March 31, 2013, the company had no commercial paper or Credit Agreement borrowings outstanding, $3,419.7 million of available and unused lines of credit, and reported a Leverage Ratio of 2.1 times and an Interest Coverage Ratio of 11.0 times against covenant 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, excluding foreign exchange. Repurchases were a notable use of cash: the company repurchased 4,588,218 shares in the open market during the quarter, and the filing shows $273.5 million of payments for repurchase of common stock in the cash flow statement. Total shareholders' equity declined to $3,173.1 million from $3,460.8 million, largely reflecting treasury stock purchases and a $181.4 million other comprehensive loss, mainly from foreign currency translation. Management noted that the 2032 and 2038 convertible notes may be put back to the company on July 31, 2013 and June 15, 2013, respectively, and expects to have sufficient cash and credit capacity to fund any repurchases.

    Apr 22, 2013
  43. 2012-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2012

    Omnicom Group Inc. reported third-quarter 2012 revenue of $3,406.6 million, up 0.8% from $3,380.9 million a year earlier, with organic growth of 3.5% offset by a 3.4% negative foreign exchange impact. Net income attributable to Omnicom Group Inc. was $203.9 million for the quarter, roughly flat versus $203.7 million, while diluted EPS rose 2.8% to $0.74 on a lower weighted average share count. For the first nine months of 2012, revenue rose 2.5% to $10,274.8 million, net income attributable to Omnicom increased 1.5% to $691.2 million, and diluted EPS increased 5.1% to $2.49. Operating margin improved to 12.2% from 11.8%, and EBITA margin improved to 13.0% from 12.5%, which the company attributed to revenue growth and cost actions taken in 2011. The balance sheet shows cash and cash equivalents of $1,956.3 million at September 30, 2012, up from $1,781.2 million at December 31, 2011, and long-term notes payable rose to $3,791.2 million from $2,523.5 million after the company issued $1,250.0 million of 3.625% Senior Notes due 2022 in April and August 2012. The Leverage Ratio increased to 2.2 times from 1.7 times, and the Interest Coverage Ratio decreased to 11.9 times from 12.3 times, with the company in compliance with its Credit Agreement covenants. Nine-month operating cash flow was $300.1 million, compared with $0.5 million in the prior-year period, and the company repurchased $1,001.6 million of common stock. Management expects revenue to increase modestly in excess of weighted average nominal GDP growth in its major markets, excluding foreign exchange impacts, and expects foreign exchange to reduce full-year 2012 revenue by approximately 2.5%. Revenue declined 11.0% in Euro markets for the nine months, reflecting ongoing weakness in the Euro Zone, while the United States and Asia/Latin America grew.

    Oct 18, 2012
  44. 2012-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2012

    Omnicom Group Inc. reported revenue of $3,561.0 million for the second quarter of 2012, up 2.1% from $3,487.4 million a year earlier, and $6,868.2 million for the first six months, up 3.5%. Organic growth was 5.1% for both the quarter and the six months, with acquisitions adding 0.7% and 0.9% respectively, while foreign exchange reduced revenue by 3.7% in the quarter and 2.5% in the six months. Net income attributable to Omnicom Group Inc. rose 2.8% to $282.7 million in the quarter and 2.2% to $487.3 million for the six months. Diluted EPS was $1.02 for the quarter (up 6.3%) and $1.74 for the six months (up 5.5%), helped by a lower weighted average share count after heavy buybacks: $805.9 million of common stock repurchased in the first six months. The balance sheet shows cash and cash equivalents of $1,665.3 million at June 30, 2012, down from $1,781.2 million at December 31, 2011. Long-term notes payable rose to $3,266.7 million from $2,523.5 million after Omnicom issued $750 million of 3.625% Senior Notes due 2022 in April 2012, with net proceeds of $746.8 million before underwriting discount and expenses. Management said its Credit Agreement, a $2.5 billion committed facility, had no outstanding borrowings or commercial paper at quarter end, and it reported compliance with covenants, with a Leverage Ratio of 2.0 times and an Interest Coverage Ratio of 12.4 times. Operating cash flow was $157.3 million for the six months, compared with a use of $262.6 million a year earlier. Management expects 2012 revenue to increase modestly above weighted average nominal GDP growth in its major markets, excluding foreign exchange, and expects foreign exchange to reduce full-year 2012 revenue by approximately 3%. The company stated its goodwill was not impaired at June 30, 2012, and that a 70% decline in fair value would be needed for any reporting unit to fail the first step of the impairment test.

    Jul 20, 2012
  45. 2012-Q2-A

    Omnicom Group Quarterly Report (Amendment) for Q2 Ended Jun 30, 2012

    Omnicom Group Inc. reported second-quarter 2012 revenue of $3,561.0 million, up 2.1% from $3,487.4 million a year earlier, with organic growth of 5.1% offset by a 3.7% negative foreign exchange impact. For the first six months of 2012, revenue rose 3.5% to $6,868.2 million, and net income attributable to Omnicom Group Inc. increased 2.2% to $487.3 million. Diluted net income per share was $1.02 for the quarter (up 6.3%) and $1.74 for the six months (up 5.5%), helped by a lower weighted average share count after share repurchases. Operating margin rose to 12.7% for the six months from 12.2%, and EBITA margin rose to 13.3% from 12.9%. Balance sheet and cash flow shifted during the period. Cash and cash equivalents fell to $1,665.3 million, and operating cash flow was $157.3 million for the six months, compared with a use of $262.6 million in the prior-year period. Long-term notes payable rose to $3,266.7 million after the April 2012 issuance of $750 million of 3.625% Senior Notes due 2022. Shareholders' equity declined to $3,269.9 million, as the company repurchased $805.9 million of common stock in the six months. The filing states the Leverage Ratio rose to 2.0 times from 1.7 times, while the Interest Coverage Ratio improved slightly to 12.4 times, and the company was in compliance with its covenants. Management expects 2012 revenue to increase modestly above weighted average nominal GDP growth, excluding foreign exchange impacts, and expects foreign exchange to reduce full-year revenue by approximately 3%. The company stated that goodwill was not impaired at June 30, 2012, with fair value substantially in excess of net book value. Its largest client represented 2.7% of revenue for the first six months of 2012.

    Jul 20, 2012
  46. 2012-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2012

    Omnicom Group Inc. reported first-quarter 2012 revenue of $3,307.3 million, up 5.0% from $3,151.3 million in the first quarter of 2011. The filing states organic growth contributed 5.1%, acquisitions net of dispositions 1.0%, and foreign exchange reduced revenue by 1.1%. Operating income rose to $362.5 million from $322.1 million, with operating margin of 11.0% versus 10.2% a year earlier. Net income attributable to Omnicom Group Inc. increased 1.3% to $204.6 million, and diluted earnings per share rose 4.3% to $0.72 from $0.69, aided by a lower weighted average share count after share repurchases. The prior-year quarter included $131.3 million of repositioning charges and a $123.4 million non-cash remeasurement gain tied to the Clemenger Group acquisition, which distort the year-over-year comparison. Cash flow and balance sheet items were weaker in the quarter. Net cash used in operating activities was $0.5 million, compared with $176.9 million a year earlier, and cash and cash equivalents fell to $1,502.7 million from $1,781.2 million at year-end 2011. The company repurchased $254.7 million of common stock and paid $69.8 million in dividends. Management stated it expects 2012 revenue to increase modestly in excess of weighted average nominal GDP growth in its major markets, excluding foreign exchange, and expects foreign exchange to reduce full-year revenue by less than 2%. The company reported a $2.5 billion committed credit agreement with no borrowings outstanding at March 31, 2012, and a debt-to-EBITDA ratio of 1.6 times against a covenant maximum of 3.0 times. Management also stated that its objective is to improve EBITA margins to 2007 levels for the full year 2012. The effective tax rate rose to 32.8% from 25.5% in the prior-year quarter, which the filing attributes largely to the prior-year tax benefits and provisions noted in the filing.

    Apr 17, 2012
  47. 2011-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2011

    Omnicom Group Inc. reported third-quarter 2011 revenue of $3,380.9 million, up 12.9% from $2,994.6 million, with organic growth of 7.2%, foreign exchange adding 3.9% and acquisitions net of dispositions adding 1.8%. Operating income rose to $373.4 million from $314.1 million, and net income attributable to Omnicom Group Inc. increased 16.7% to $203.7 million. Diluted earnings per share were $0.72, up 26.3% from $0.57, helped by a lower weighted average share count after repurchases. For the first nine months, revenue was $10,019.6 million, up 11.9%, and net income attributable to Omnicom Group Inc. was $680.7 million, including a $123.4 million non-cash remeasurement gain from the Clemenger Group acquisition and $131.3 million of repositioning charges, both recorded in the first quarter. Cash flow was weak over the nine months: operating activities generated only $0.5 million, as change in operating capital consumed $903.9 million. Cash and cash equivalents fell $1,388.1 million to $900.6 million from December 31, 2010. The company spent $717.9 million on share repurchases, $199.0 million on dividends and $314.8 million on acquisitions. Total debt was $3,185.2 million on the balance sheet at September 30, 2011, and the company reported compliance with its credit facility covenants, with a debt-to-EBITDA ratio of 1.7 times. On October 12, 2011, the credit facility was amended to $2.5 billion with a term extended to October 12, 2016. Management expects revenue to grow modestly above average nominal GDP growth for the remainder of 2011, excluding foreign exchange effects, and targets margins at 2007 levels by the end of 2012. Goodwill of $8,397.5 million was not impaired, and the filing states no material change in market risks or risk factors since the 2010 Form 10-K.

    Oct 20, 2011
  48. 2011-Q2

    Omnicom Group Quarterly Report for Q2 Ended Jun 30, 2011

    Omnicom Group Inc. reported a 10-Q for the quarter ended June 30, 2011. Revenue for the second quarter rose 14.7% to $3,487.4 million from $3,041.2 million, of which 7.2% was organic growth, 5.5% foreign exchange and 2.0% acquisitions net of dispositions. For the first six months, revenue rose 11.4% to $6,638.8 million. Net income attributable to Omnicom Group Inc. increased 13.1% to $275.1 million in the second quarter and 17.3% to $477.0 million for the six months. Diluted EPS was $0.96 for the quarter, up 21.5%, and $1.65 for the six months, up 26.9%, helped by a lower weighted average share count after repurchases. First-quarter 2011 results included $131.3 million of repositioning charges and a non-cash $123.4 million remeasurement gain from acquiring a controlling interest in Clemenger Group, which raised Omnicom's ownership from 46.7% to 73.7%. Operating income for the six months was $810.3 million, and operating margin was 12.2%. Cash used in operations was $262.6 million for the six months, and cash and cash equivalents fell by $1,302.4 million to $986.3 million, largely reflecting $665.6 million of share repurchases and $261.7 million of acquisition payments. Liquidity remained substantial, with a $2.0 billion credit facility undrawn at June 30, 2011 and total available and unused lines of credit of $2,744.7 million. The company stated it was in compliance with its covenants, with a debt-to-EBITDA ratio of 1.8 times against a 3.0 times limit. Management expects revenue to grow modestly above average nominal GDP growth for the rest of 2011, excluding foreign exchange.

    Jul 21, 2011
  49. 2011-Q1

    Omnicom Group Quarterly Report for Q1 Ended Mar 31, 2011

    Omnicom Group Inc.'s first-quarter 2011 Form 10-Q shows revenue rising to $3,151.3 million from $2,920.0 million, an increase of 7.9%, of which 5.2% was organic growth, 1.3% foreign exchange and 1.4% acquisitions net of dispositions. Operating income was $322.1 million versus $291.0 million, and net income attributable to Omnicom Group Inc. was $201.9 million, or $0.69 diluted per share, compared with $163.4 million and $0.52 a year earlier. Results were shaped by two significant one-time items: $131.3 million of repositioning charges (mainly $92.8 million of severance) and a $123.4 million non-cash remeasurement gain from acquiring a controlling interest in the Clemenger Group, which raised Omnicom's stake from 46.7% to 73.7%. The company reported an EBITA margin of 10.9% versus 10.5% and an operating margin of 10.2% versus 10.0%. Cash and cash equivalents fell by $776.5 million to $1,512.2 million, driven by a $176.9 million operating cash outflow, $333.2 million of share repurchases, and $211.4 million of acquisition payments. Management said the seasonal working capital pattern, with a second-quarter peak, is expected to reverse by year-end. Liquidity remains supported by an undrawn $2.0 billion credit facility expiring December 9, 2013, and total available and unused lines of credit of $2,669.8 million. Debt covenant ratios were stated as 1.9 times debt to EBITDA and 11.9 times EBITDA to interest expense, against limits of 3.0 times and 5.0 times. Looking ahead, management expects revenue to increase modestly above average nominal GDP growth for 2011, excluding foreign exchange, and expects foreign exchange to add approximately 3% to full-year revenue. The company is pursuing a goal of returning margins to 2007 levels by the end of 2012, and it expects dispositions to reduce annual revenue by approximately $120 million, offset by acquisitions.

    Apr 29, 2011
  50. 2010-Q3

    Omnicom Group Quarterly Report for Q3 Ended Sep 30, 2010

    Omnicom Group Inc. reported third-quarter 2010 revenue of $2,994.6 million, up 5.5% from $2,837.6 million, of which organic growth was 6.7%. For the first nine months, revenue rose 5.9% to $8,955.7 million, with organic growth of 5.0%. Net income attributed to Omnicom Group Inc. was $174.6 million for the quarter, up 5.4%, and diluted earnings per share were $0.57, up from $0.53. For the nine months, diluted earnings per share were $1.88 versus $1.80. Salary and service costs rose to 73.8% of revenue in the quarter, which the company attributed to changes in business mix, growth in events and sports marketing, and higher freelance labor costs. Cash flow and capital allocation were central to the period. Net cash provided by operating activities for the nine months was $43.5 million, compared with $453.1 million a year earlier, driven by a $799.3 million change in operating capital. The company repurchased $567.0 million of common stock during the nine months and paid $169.2 million in dividends. It issued $1.0 billion of 4.45% Senior Notes due 2020 in August 2010 and entered into interest rate swaps converting its 5.90% Senior Notes due 2016 to floating rate. Cash and cash equivalents were $1,689.3 million at September 30, 2010. The company disclosed that its $2.5 billion credit facility expires June 23, 2011, which causes its 2031 and 2032 convertible notes to be classified as current liabilities. The filing also states that the loss of a large automotive-sector client is estimated to reduce revenue by 1.5% for the remainder of 2010, and that the company expects modest revenue growth excluding foreign exchange. Goodwill was not impaired as of June 30, 2010.

    Oct 22, 2010