SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT
OF 1934
Date of Report (July 27, 1998):
Commission file number 1-6686
THE INTERPUBLIC GROUP OF COMPANIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-1024020
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1271 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip Code)
(212) 399-8000
(Registrant's telephone number, including area code)
ITEM 5 OTHER EVENTS
5.1 Attached hereto as exhibit 99 and incorporated by reference
herein is financial information for The Interpublic Group of
Companies, Inc. for the quarter ended June 30, 1998, as presented
in the press release of July 27, 1998.
ITEM 7 FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS
(c) Exhibits
99. Financial information for The Interpublic Group of
Companies, Inc. for the quarter ended June 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
THE INTERPUBLIC GROUP OF COMPANIES, INC.
Date: July 27, 1998 By:/s/ NICHOLAS J. CAMERA
NICHOLAS J. CAMERA
VICE PRESIDENT, GENERAL COUNSEL
AND SECRETARY
FOR IMMEDIATE RELEASE
INTERPUBLIC GROUP REPORTS
RESULTS FOR SECOND QUARTER 1998
New York, July 27, 1998 (NYSE:IPG) -- Philip H. Geier, Jr.,
Chairman of the Board and Chief Executive Officer, reported that
The Interpublic Group of Companies, Inc. had net income for the
second quarter of 1998 of $116.4 million, an increase of 24.8%
over the restated net income for the second quarter of 1997 of
$93.2 million. The basic earnings per share increased 20.5% to
$.88 from $.73 for the comparable restated period of 1997. On a
diluted basis, earnings per share for the second quarter of 1998
was $.84, an increase of 20% over the restated second quarter of
1997.
Gross income for the second quarter of 1998 was $972.4 million,
an increase of 17.8% over 1997. Gross income for the United
States operations increased 21.4%. Gross income from
international operations increased 14.5%. Gross income from
international operations would have increased 23.4%, except for
strengthening of the U.S. dollar against major currencies.
Net income for the first six months of 1998 was $152.2 million,
an increase of 24.1% over the restated net income for 1997. The
basic earnings per share increased 18.6% to $1.15 from $.97 for
the comparable restated period of 1997. On a diluted basis,
earnings per share was $1.11 versus $.93 in 1997, an increase of
19.4%.
Gross income for the first six months of 1998 was $1,748 million,
an increase of 16.2% from the restated six months of 1997. Gross
income from United States operations increased 20.4%. Gross
income from international operations increased 12.1%. Gross
income from international operations would have increased 21.4%,
except for the strengthening of the U.S. dollar against major
currencies.
As more fully disclosed in the Company's supplemental
consolidated financial statements, Interpublic acquired three
companies in April 1998, which were accounted for as poolings of
interests. All prior period figures have been restated to
incorporate the aggregate effect of the April 1998 pooled
companies in addition to all prior pooled entities.
Interpublic's agency systems gained record net new business
during the second quarter of 1998 of approximately $294 million
compared with the second quarter of 1997 net new business gain of
$236 million, an increase of 24%. During the first six months of
1998 net new business gains were recorded of approximately $817
million compared with $709 million during the first six months of
1997, an increase of 15%.
Continuing cost containment efforts kept costs at appropriate
levels. Mr. Geier noted that the Company's financial condition
continues to be excellent, with a strong balance sheet and a
solid cash position. He also noted, as in previous years, the
results for the first six months do not necessarily indicate the
results for the full year.
The Interpublic Group of Companies is comprised of McCann-
Erickson WorldGroup, Ammirati Puris Lintas, The Lowe Group,
DraftWorldwide, Western International Media, Allied
Communications Group, Octagon and other related companies.
The shares of The Interpublic Group of Companies, Inc. are listed
on the New York Stock Exchange (IPG); more information about
Interpublic is available on the company's Web site at
www.interpublic.com.
Contact: Eugene P. Beard Thomas J. Volpe
212/399-8053 212/399-8056
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
CONSOLIDATED SUMMARY OF EARNINGS
SECOND QUARTER REPORT 1998 AND 1997 (UNAUDITED)
(Dollars in Thousands Except Per Share Data)
%
Second Quarter Favorable
1998 1997 (Unfavorable)
Gross Income:
United States $ 479,849 $ 395,246 21.4
International 492,514 430,112 14.5
Total Gross Income $ 972,363 $ 825,358
17.8
Costs and Expenses $ 751,522 $ 649,291 (15.7)
Interest Expense $ 12,672 $ 11,306 (12.1)
Income Before Provision
for Income Taxes $ 208,169 $ 164,761 26.3
Provision for
Income Taxes $ 86,871 $ 66,428 (30.8)
Net Equity
Interests (a) $ (4,945) $ (5,113) -
Net Income $ 116,353 $ 93,220 24.8
Per Share Data:
Basic EPS $ .88 $ .73 20.5
Diluted EPS $ .84 $ .70 20.0
Dividend per
share-Interpublic $ .15 $ .13 15.4
Weighted Average Shares:
Basic 132,925,736 127,161,514
Diluted 141,684,852 136,044,790
%
Six Months Ended June 30 Favorable
1998 1997 (Unfavorable)
Gross Income:
United States $ 889,098 $ 738,509 20.4
International 858,565 766,146 12.1
Total Gross Income $ 1,747,663 $ 1,504,655 16.2
Costs and Expenses $ 1,452,088 $ 1,264,165 (14.9)
Interest Expense $ 23,609 $ 22,004 (7.3)
Income Before Provision
for Income Taxes $ 271,966 $ 218,486 24.5
Provision for
Income Taxes $ 112,639 $ 88,018 (28.0)
Net Equity
Interests (a) $ (7,134) $ (7,817) -
Net Income $ 152,193 $ 122,651 24.1
Per Share Data:
Basic EPS $ 1.15 $ .97 18.6
Diluted EPS $ 1.11 $ .93 19.4
Dividend per
share-Interpublic $ .28 $ .24 16.7
Weighted Average Shares:
Basic 132,659,926 126,948,010
Diluted 137,892,204 135,615,360
Note: All prior period figures have been restated to incorporate
the aggregate effect of the April 1998 pooled companies in
addition to all prior pooled entities.
(a) Net equity interests is the equity in income of
unconsolidated affiliates less income attributable to
minority interests of consolidated subsidiaries.
