Interpublic Group announced full year and fourth quarter 2014 results. Full year 2014 revenue was $7.54 billion, compared to $7.12 billion in 2013, with an organic revenue increase of 5.5% compared to the prior-year period.
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This was comprised of an organic revenue increase of 6.6% internationally and 4.7% in the U.S.
Fourth quarter 2014 revenue was $2.21 billion, compared to $2.12 billion in the fourth quarter of 2013, with an organic revenue increase of 4.8% compared to the prior-year period. This was comprised of an organic revenue increase of 6.4% internationally and 3.4% in the U.S.
For the full year 2014, operating income was $788.4 million, compared to $598.3 million in 2013 which included a fourth quarter pre-tax restructuring charge. Operating margin was 10.5% for the full year 2014, compared to 9.3% for the full year 2013 excluding the impact of restructuring and related costs.
Operating income in the fourth quarter of 2014 was $433.0 million, compared to $324.4 million in 2013 which included a pre-tax restructuring charge. Operating margin was 19.6% for the fourth quarter of 2014, compared to 18.1% for the fourth quarter of 2013 excluding the impact of restructuring and related costs.
Full year 2014 net income available to IPG common stockholders was $477.1 million, resulting in earnings of $1.14 per basic and $1.12 per diluted share. This compares to net income available to IPG common stockholders of $259.2 million, or $0.62 per basic and $0.61 per diluted share a year ago.
Excluding the impact of the net valuation allowance reversal of $67.6 million on deferred tax assets in Continental Europe in the fourth quarter of 2014 and the charge for early extinguishment of the 6.25% Senior Unsecured Notes due 2014 (the "6.25% Notes") in the second quarter of 2014, diluted earnings per share was $0.98 in 2014.
This compared to $0.78 per share in 2013 excluding the impact of restructuring and related costs in the fourth quarter of 2013 and the charge for early extinguishment of the 10.00% Senior Unsecured Notes due 2017 (the "10.00% Notes") in the third quarter of 2013.
Fourth quarter 2014 net income available to IPG common stockholders was $308.9 million, resulting in earnings of $0.75 per basic and $0.73 per diluted share. This compares to net income available to IPG common stockholders of $193.1 million, or $0.45 per basic and $0.44 per diluted share a year ago.
Excluding the impact of the net valuation allowance reversal on deferred tax assets in Continental Europe, diluted earnings per share was $0.57 in 2014, compared to $0.56 in 2013 excluding the impact of restructuring and related costs.
Interpublic Group announced that its Board of Directors has declared a quarterly dividend on IPG common stock of $0.12 per share, payable on March 16, 2015 to holders of record at the close of business on March 2, 2015. The increase in the dividend from $0.095 to $0.12 per share represents a 26% increase in the Company's quarterly dividend.
Additionally, the company's board authorized a new program to repurchase, from time to time, up to $300 million of IPG common stock. ■