Omnicom Group Q2 2024 10-Q Filed

TL;DR

OMC 10-Q filed: Q2 2024 financials out, debt instruments detailed.

AI Summary

Omnicom Group Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial instruments mentioned include various senior notes due in 2027, 2031, 2032, and 2033, indicating ongoing debt management.

Why It Matters

This filing provides investors with the latest financial health and operational status of Omnicom Group, a major advertising and marketing communications company.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-06-30 — Report End Date (Quarterly financial reporting period)
• 2024-01-01 — Report Start Date (Quarterly financial reporting period)

Key Players & Entities

• OMNICOM GROUP INC. (company) — Filer
• 20240630 (date) — Period of Report
• 20240717 (date) — Filed as of Date
• 280 PARK AVENUE (address) — Business Address
• A0.80SeniorNotesDue2027Member (financial_instrument) — Debt Instrument
• A1.40SeniorNotesDue2031Member (financial_instrument) — Debt Instrument
• A3.70SeniorNotesDue2032Member (financial_instrument) — Debt Instrument
• A2.25SeniorNotesDue2033Member (financial_instrument) — Debt Instrument

FAQ

Key Financial Figures

• $0.15 — ange on which registered Common Stock, $0.15 Par Value OMC New York Stock Exchange

Filing Documents

• omc-20240630.htm (10-Q) — 1362KB
• a2024q2exhibit311.htm (EX-31.1) — 9KB
• a2024q2exhibit312.htm (EX-31.2) — 10KB
• a2024q2exhibit32.htm (EX-32) — 10KB
• 0000029989-24-000021.txt ( ) — 5718KB
• omc-20240630.xsd (EX-101.SCH) — 32KB
• omc-20240630_cal.xml (EX-101.CAL) — 68KB
• omc-20240630_def.xml (EX-101.DEF) — 124KB
• omc-20240630_lab.xml (EX-101.LAB) — 407KB
• omc-20240630_pre.xml (EX-101.PRE) — 265KB
• omc-20240630_htm.xml (XML) — 825KB

FINANCIAL INFORMATION Page

PART I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets - June 30, 2024 and December 31, 2023 1 Consolidated Statements of Income - Three and Six Months Ended June 30, 2024 and 2023 2 Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2024 and 2023 3 Consolidated Statements of Equity - Three and Six Months Ended June 30, 2024 and 2023 4 Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14

Forward-Looking Statements 14

Forward-Looking Statements 14 Executive Summary 15 Consolidated Results of Operations 18 Non-GAAP Financial Measures 27 Liquidity and Capital Resources 27 Critical Accounting Estimates 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 32

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Other Information 33

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 33 Signatures 33 i

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions) June 30, 2024 December 31, 2023 (Unaudited) ASSETS: Current Assets: Cash and cash equivalents $ 2,711.7 $ 4,432.0 Accounts receivable, net of allowance for doubtful accounts of $ 22.2 and $ 17.2 8,432.5 8,659.8 Work in process 1,800.0 1,342.5 Other current assets 1,028.2 949.9 Total Current Assets 13,972.4 15,384.2 Property and Equipment at cost, less accumulated depreciation of $ 1,133.5 and $ 1,150.4 859.9 874.9 Operating Lease Right-Of-Use Assets 1,015.5 1,046.4 Equity Method Investments 63.3 66.4 Goodwill 10,646.5 10,082.3 Intangible Assets, net of accumulated amortization of $ 857.3 and $ 863.6 522.7 366.9 Other Assets 243.9 223.5 TOTAL ASSETS $ 27,324.2 $ 28,044.6 LIABILITIES AND EQUITY: Current Liabilities: Accounts payable $ 10,647.8 $ 11,634.0 Customer advances 1,262.1 1,356.2 Current portion of debt 750.2 750.5 Short-term debt 15.1 10.9 Taxes payable 241.1 351.6 Other current liabilities 2,040.8 2,142.8 Total Current Liabilities 14,957.1 16,246.0 Long-Term Liabilities 881.0 887.7 Long-Term Liability - Operating Leases 806.2 853.0 Long-Term Debt 5,489.4 4,889.1 Deferred Tax Liabilities 533.8 529.1 Commitments and Contingent Liabilities (Note 13) Temporary Equity - Redeemable Noncontrolling Interests 460.8 414.6 Equity: Shareholders' Equity: Preferred stock — — Common stock 44.6 44.6 Additional paid-in capital 468.4 492.0 Retained earnings 10,941.0 10,571.5 Accumulated other comprehensive income (loss) ( 1,445.5 ) ( 1,337.6 ) Treasury stock, at cost ( 6,372.7 ) ( 6,154.2 ) Total Shareholders' Equity 3,635.8 3,616.3 Noncontrolling interests 560.1 608.8 Total Equity 4,195.9 4,225.1 TOTAL LIABILITIES AND EQUITY $ 27,324.2 $ 28,044.6 The accompanying notes to the consolidated financial statements are an integral part of these statements. 1 OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Dollars in tables in millions, except per share amounts) 1. Presentation of Financial Statements The terms "Omnicom," "the Company," "we," "our" and "us" each refer to Omnicom Group Inc. and its subsidiaries, unless the context indicates otherwise. The accompanying unaudited consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP or GAAP, for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures have been condensed or omitted. In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation, in all material respects, of the information contained herein. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023, or 2023 10-K. Results for the interim periods are not necessarily indicative of results that may be expected for the year. Risks and Uncertainties Global economic challenges, including geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor and supply chain issues could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and futu

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