On April 26, Interpublic Group of Companies Inc. (IPG) reported financial results for the first quarter of 2012. For the quarter, the company reported a loss of 10 cents per basic and diluted share in line with the loss recorded in the first quarter of 2011 and with that of the Zacks Consensus Estimate.
Revenue: Revenue in the first quarter inched up 2.2% year over year to $1,506.8 million, with 1.7% growth in the U.S. and 2.9% internationally. Revenue in the reported quarter marginally surpassed the Zacks Consensus Estimate of $1,492 million.
Organic revenue in the quarter increased 2.8% compared to the prior-year period based on the negative effect of foreign currency translation on one hand and a positive net acquisition impact on the other.
Margin: Operating loss was $39.4 million compared with $45.3 million in the year-ago period. Operating expenses in the quarter inched down 1.7% to $1,546.2 million. This included decrease of 2.3% in salaries and related expenses and a decline of 0.5% in office and general expenses. Operating margin in the quarter was (2.6)% compared with (3.1)% in the year-ago quarter.
Balance Sheet: Exiting the first quarter, the company’s cash and cash equivalents and marketable securities amounted to $1.59 billion compared with $2.32 billion in the previous quarter. Total debt was recorded at $1.62 billion compared with $1.77 billion in the preceding quarter.
Dividend/Senior Notes: During the first quarter of 2012, the company paid a dividend of $0.06 per share, for a total consideration of $26.2 million. Moreover, the company repurchased 4.9 million shares of its common stock for $52.5 million. The average price was $10.61 per share.
In addition, the company retired $400 million of its 4.25% Convertible Senior Notes due 2023. This eliminated 33 million shares from eligible dilutive share count and thereafter issued $250 million in aggregate principal amount of its 4.00% Senior Notes due 2022.
IPG’s diversified global presence–riding on new business investment—provides an edge above its peers, such as Omnicom Group Inc. (OMC), Publicis Groupe SA (PUBGY) and WPP plc (WPPGY).
INTERPUBLIC GRP (IPG): Free Stock Analysis Report
OMNICOM GRP (OMC): Free Stock Analysis Report
PUBLICIS GP-ADR (PUBGY): Free Stock Analysis Report
WPP PLC (WPPGY): Free Stock Analysis Report
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