APPENDIX |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2022 AND 2021 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
Three Months Ended June 30, | ||||||
2022 | 2021 |
Fav. (Unfav.) % Variance | ||||
Revenue: | ||||||
Net Revenue | $ | 2,375.5 | $ | 2,269.6 | 4.7 | % |
Billable Expenses | 360.2 | 240.0 | 50.1 | % | ||
Total Revenue | 2,735.7 | 2,509.6 | 9.0 | % | ||
Operating Expenses: | ||||||
Salaries and Related Expenses | 1,590.2 | 1,484.9 | (7.1) | % | ||
Office and Other Direct Expenses | 349.8 | 301.0 | (16.2) | % | ||
Billable Expenses | 360.2 | 240.0 | (50.1) | % | ||
Cost of Services | 2,300.2 | 2,025.9 | (13.5) | % | ||
Selling, General and Administrative Expenses | 19.4 | 29.4 | 34.0 | % | ||
Depreciation and Amortization | 67.1 | 70.1 | 4.3 | % | ||
Restructuring Charges | (0.1) | (0.2) | (50.0) | % | ||
Total Operating Expenses | 2,386.6 | 2,125.2 | (12.3) | % | ||
Operating Income | 349.1 | 384.4 | (9.2) | % | ||
Expenses and Other Income: | ||||||
Interest Expense | (41.0) | (42.6) | ||||
Interest Income | 11.2 | 7.6 | ||||
Other (Expense) Income, Net | (4.5) | 4.7 | ||||
Total (Expenses) and Other Income | (34.3) | (30.3) | ||||
Income Before Income Taxes | 314.8 | 354.1 | ||||
Provision for Income Taxes | 83.7 | 86.7 | ||||
Income of Consolidated Companies | 231.1 | 267.4 | ||||
Equity in Net Income of Unconsolidated Affiliates | 0.7 | 0.4 | ||||
Net Income | 231.8 | 267.8 | ||||
Net Income Attributable to Non-controlling Interests | (2.2) | (4.5) | ||||
Net Income Available to IPG Common Stockholders | $ | 229.6 | $ | 263.3 | ||
Earnings Per Share Available to IPG Common Stockholders:
| ||||||
Basic
| $ | 0.58 | $ | 0.67 | ||
Diluted
| $ | 0.58 | $ | 0.66 | ||
Weighted-Average Number of Common Shares Outstanding:
| ||||||
Basic
| 393.1 | 393.3 | ||||
Diluted
| 396.8 | 399.0 | ||||
Dividends Declared Per Common Share | $ | 0.290 | $ | 0.270 |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2022 AND 2021 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
Six Months Ended June 30, | ||||||
2022 | 2021 |
Fav. (Unfav.) % Variance | ||||
Revenue: | ||||||
Net Revenue | $ | 4,602.7 | $ | 4,297.3 | 7.1 | % |
Billable Expenses | 701.5 | 469.3 | 49.5 | % | ||
Total Revenue | 5,304.2 | 4,766.6 | 11.3 | % | ||
Operating Expenses: | ||||||
Salaries and Related Expenses | 3,154.6 | 2,878.0 | (9.6) | % | ||
Office and Other Direct Expenses | 673.2 | 593.9 | (13.4) | % | ||
Billable Expenses | 701.5 | 469.3 | (49.5) | % | ||
Cost of Services | 4,529.3 | 3,941.2 | (14.9) | % | ||
Selling, General and Administrative Expenses | 38.7 | 57.6 | 32.8 | % | ||
Depreciation and Amortization | 134.9 | 139.3 | 3.2 | % | ||
Restructuring Charges | 6.5 | 1.1 | >(100)% | |||
Total Operating Expenses | 4,709.4 | 4,139.2 | (13.8) | % | ||
Operating Income | 594.8 | 627.4 | (5.2) | % | ||
Expenses and Other Income: | ||||||
Interest Expense | (80.4) | (92.2) | ||||
Interest Income | 21.0 | 14.5 | ||||
Other Expense, Net | (10.7) | (79.2) | ||||
Total (Expenses) and Other Income | (70.1) | (156.9) | ||||
Income Before Income Taxes | 524.7 | 470.5 | ||||
Provision for Income Taxes | 132.8 | 110.5 | ||||
Income of Consolidated Companies | 391.9 | 360.0 | ||||
Equity in Net Income of Unconsolidated Affiliates | 0.8 | 0.2 | ||||
Net Income | 392.7 | 360.2 | ||||
Net Income Attributable to Non-controlling Interests | (3.7) | (5.2) | ||||
Net Income Available to IPG Common Stockholders | $ | 389.0 | $ | 355.0 | ||
Earnings Per Share Available to IPG Common Stockholders:
| ||||||
Basic
| $ | 0.99 | $ | 0.90 | ||
Diluted
| $ | 0.98 | $ | 0.89 | ||
Weighted-Average Number of Common Shares Outstanding:
| ||||||
Basic
| 393.8 | 392.4 | ||||
Diluted
| 397.5 | 397.6 | ||||
Dividends Declared Per Common Share | $ | 0.580 | $ | 0.540 |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||
Three Months Ended June 30, 2022 | ||||||||||
As Reported | Amortization of Acquired Intangibles |
Restructuring Charges1
|
Net Losses on Business Dispositions2
| Adjusted Results (Non-GAAP) | ||||||
Operating Income and Adjusted EBITA before Restructuring Charges3
| $ | 349.1 | $ | (21.1) | $ | 0.1 | $ | 370.1 | ||
Total (Expenses) and Other Income4
| (34.3) | $ | (4.2) | (30.1) | ||||||
Income Before Income Taxes | 314.8 | (21.1) | 0.1 | (4.2) | 340.0 | |||||
Provision for Income Taxes | 83.7 | 4.3 | 0.0 | 0.0 | 88.0 | |||||
Equity in Net Income of Unconsolidated Affiliates | 0.7 | 0.7 | ||||||||
Net Income Attributable to Non-controlling Interests | (2.2) | (2.2) | ||||||||
Net Income Available to IPG Common Stockholders | $ | 229.6 | $ | (16.8) | $ | 0.1 | $ | (4.2) | $ | 250.5 |
Weighted-Average Number of Common Shares Outstanding - Basic | 393.1 | 393.1 | ||||||||
Dilutive effect of stock options and restricted shares | 3.7 | 3.7 | ||||||||
Weighted-Average Number of Common Shares Outstanding - Diluted | 396.8 | 396.8 | ||||||||
Earnings per Share Available to IPG Common Stockholders5:
| ||||||||||
Basic | $ | 0.58 | $ | (0.04) | $ | 0.00 | $ | (0.01) | $ | 0.64 |
Diluted | $ | 0.58 | $ | (0.04) | $ | 0.00 | $ | (0.01) | $ | 0.63 |
1 Restructuring charges of $(0.1) in the second quarter of 2022 were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business.
| ||||||||||
2 Primarily includes a non-cash loss in the second quarter of 2022 related to the deconsolidation of a previously consolidated subsidiary in which we maintain an equity interest, as well as losses on complete dispositions of businesses and the classification of certain assets as held for sale.
| ||||||||||
3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix.
| ||||||||||
4 Consists of non-operating expenses including interest expense, interest income and other expense, net.
| ||||||||||
5 Earnings per share amounts calculated on an unrounded basis.
| ||||||||||
Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||
Six Months Ended June 30, 2022 | ||||||||||
As Reported | Amortization of Acquired Intangibles |
Restructuring Charges1
|
Net Losses on Business Dispositions2
| Adjusted Results (Non-GAAP) | ||||||
Operating Income and Adjusted EBITA before Restructuring Charges3
| $ | 594.8 | $ | (42.4) | $ | (6.5) | $ | 643.7 | ||
Total (Expenses) and Other Income4
| (70.1) | $ | (10.6) | (59.5) | ||||||
Income Before Income Taxes | 524.7 | (42.4) | (6.5) | (10.6) | 584.2 | |||||
Provision for Income Taxes | 132.8 | 8.5 | 1.6 | 0.0 | 142.9 | |||||
Equity in Net Income of Unconsolidated Affiliates | 0.8 | 0.8 | ||||||||
Net Income Attributable to Non-controlling Interests | (3.7) | (3.7) | ||||||||
Net Income Available to IPG Common Stockholders | $ | 389.0 | $ | (33.9) | $ | (4.9) | $ | (10.6) | $ | 438.4 |
Weighted-Average Number of Common Shares Outstanding - Basic | 393.8 | 393.8 | ||||||||
Dilutive effect of stock options and restricted shares | 3.7 | 3.7 | ||||||||
Weighted-Average Number of Common Shares Outstanding - Diluted | 397.5 | 397.5 | ||||||||
Earnings per Share Available to IPG Common Stockholders5:
| ||||||||||
Basic | $ | 0.99 | $ | (0.09) | $ | (0.01) | $ | (0.03) | $ | 1.11 |
Diluted | $ | 0.98 | $ | (0.09) | $ | (0.01) | $ | (0.03) | $ | 1.10 |
1 Restructuring charges of $6.5 in the first half of 2022 were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business.
| ||||||||||
2 Includes losses on complete dispositions of businesses and the classification of certain assets as held for sale, as well as a non-cash loss in the second quarter of 2022 related to the deconsolidation of a previously consolidated subsidiary in which we maintain an equity interest.
| ||||||||||
3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix.
| ||||||||||
4 Consists of non-operating expenses including interest expense, interest income and other expense, net.
| ||||||||||
5 Earnings per share amounts calculated on an unrounded basis.
| ||||||||||
Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATIONOF NON-GAAP ADJUSTED RESULTS (Amounts in Millions) (UNAUDITED) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Net Revenue | $ | 2,375.5 | $ | 2,269.6 | $ | 4,602.7 | $ | 4,297.3 |
Non-GAAP Reconciliation: | ||||||||
Net Income Available to IPG Common Stockholders | $ | 229.6 | $ | 263.3 | $ | 389.0 | $ | 355.0 |
Add Back: | ||||||||
Provision for Income Taxes | 83.7 | 86.7 | 132.8 | 110.5 | ||||
Subtract: | ||||||||
Total (Expenses) and Other Income | (34.3) | (30.3) | (70.1) | (156.9) | ||||
Equity in Net Income of Unconsolidated Affiliates | 0.7 | 0.4 | 0.8 | 0.2 | ||||
Net Income Attributable to Non-controlling Interests | (2.2) | (4.5) | (3.7) | (5.2) | ||||
Operating Income | 349.1 | 384.4 | 594.8 | 627.4 | ||||
Add Back: | ||||||||
Amortization of Acquired Intangibles | 21.1 | 21.6 | 42.4 | 43.2 | ||||
Adjusted EBITA | $ | 370.2 | $ | 406.0 | $ | 637.2 | $ | 670.6 |
Adjusted EBITA Margin on Net Revenue % | 15.6 | % | 17.9 | % | 13.8 | % | 15.6 | % |
Restructuring Charges1
| (0.1) | (0.2) | 6.5 | 1.1 | ||||
Adjusted EBITA before Restructuring Charges | $ | 370.1 | $ | 405.8 | $ | 643.7 | $ | 671.7 |
Adjusted EBITA before Restructuring Charges Margin on Net Revenue % | 15.6 | % | 17.9 | % | 14.0 | % | 15.6 | % |
1 Restructuring charges of $(0.1) and $6.5 in the second quarter and first half of 2022, respectively, were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business. Restructuring charges of $(0.2) million and $1.1 million in the second quarter and first half of 2021, respectively, were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business.
| ||||||||
Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance.
|
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||
Three Months Ended June 30, 2021 | ||||||||||
As Reported | Amortization of Acquired Intangibles |
Restructuring Charges1
|
Net Losses on Sales of Businesses2
| Adjusted Results (Non-GAAP) | ||||||
Operating Income and Adjusted EBITA before Restructuring Charges3
| $ | 384.4 | $ | (21.6) | $ | 0.2 | $ | 405.8 | ||
Total (Expenses) and Other Income4
| (30.3) | $ | (1.7) | (28.6) | ||||||
Income Before Income Taxes | 354.1 | (21.6) | 0.2 | (1.7) | 377.2 | |||||
Provision for Income Taxes | 86.7 | 4.2 | 0.0 | 1.0 | 91.9 | |||||
Equity in Net Income of Unconsolidated Affiliates | 0.4 | 0.4 | ||||||||
Net Income Attributable to Noncontrolling Interests | (4.5) | (4.5) | ||||||||
Net Income Available to IPG Common Stockholders | $ | 263.3 | $ | (17.4) | $ | 0.2 | $ | (0.7) | $ | 281.2 |
Weighted-Average Number of Common Shares Outstanding - Basic | 393.3 | 393.3 | ||||||||
Dilutive effect of stock options and restricted shares | 5.7 | 5.7 | ||||||||
Weighted-Average Number of Common Shares Outstanding - Diluted | 399.0 | 399.0 | ||||||||
Earnings per Share Available to IPG Common Stockholders5:
| ||||||||||
Basic | $ | 0.67 | $ | (0.04) | $ | 0.00 | $ | (0.00) | $ | 0.71 |
Diluted | $ | 0.66 | $ | (0.04) | $ | 0.00 | $ | (0.00) | $ | 0.70 |
1 Restructuring charges of $(0.2) million in the second quarter of 2021 were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business.
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2 Includes losses on complete dispositions of businesses and the classification of certain assets as held for sale.
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3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix.
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4 Consists of non-operating expenses including interest expense, interest income and other expense, net.
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5 Earnings per share amounts calculated on an unrounded basis.
| ||||||||||
Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. |
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||
As Reported | Amortization of Acquired Intangibles |
Restructuring Charges1
|
Net Losses on Sales of Businesses2
|
Loss on Early Extinguishment of Debt3
| Adjusted Results (Non-GAAP) | |||||||
Operating Income and Adjusted EBITA before Restructuring Charges4
| $ | 627.4 | $ | (43.2) | $ | (1.1) | $ | 671.7 | ||||
Total (Expenses) and Other Income5
| (156.9) | $ | (14.2) | $ | (74.0) | (68.7) | ||||||
Income Before Income Taxes | 470.5 | (43.2) | (1.1) | (14.2) | (74.0) | 603.0 | ||||||
Provision for Income Taxes | 110.5 | 8.4 | 0.3 | 1.7 | 18.5 | 139.4 | ||||||
Equity in Net Income of Unconsolidated Affiliates | 0.2 | 0.2 | ||||||||||
Net Income Attributable to Noncontrolling Interests | (5.2) | (5.2) | ||||||||||
Net Income Available to IPG Common Stockholders | $ | 355.0 | $ | (34.8) | $ | (0.8) | $ | (12.5) | $ | (55.5) | $ | 458.6 |
Weighted-Average Number of Common Shares Outstanding - Basic | 392.4 | 392.4 | ||||||||||
Dilutive effect of stock options and restricted shares | 5.2 | 5.2 | ||||||||||
Weighted-Average Number of Common Shares Outstanding - Diluted | 397.6 | 397.6 | ||||||||||
Earnings per Share Available to IPG Common Stockholders6:
| ||||||||||||
Basic | $ | 0.90 | $ | (0.09) | $ | (0.00) | $ | (0.03) | $ | (0.14) | $ | 1.17 |
Diluted | $ | 0.89 | $ | (0.09) | $ | (0.00) | $ | (0.03) | $ | (0.14) | $ | 1.15 |
1 Restructuring charges of $1.1 million in the first half of 2021 were related to adjustments to our restructuring actions taken in 2020, which were designed to reduce our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business.
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2 Includes losses on complete dispositions of businesses and the classification of certain assets as held for sale.
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3 Consists of a loss incurred in the first quarter of 2021 related to the early extinguishment of our 4.000% unsecured senior notes due 2022, 3.750% unsecured senior notes due 2023 and half of our 4.200% unsecured senior notes due 2024.
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4 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix
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5Consists of non-operating expenses including interest expense, interest income and other expense, net.
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6 Earnings per share amounts calculated on an unrounded basis.
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Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. |
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Interpublic Group of Companies Inc. published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 14:43:08 UTC.