Exhibit 99.1
------------
FOR IMMEDIATE RELEASE Contact:
Jan A. Sneed (212) 546-2422
Steven G.Felsher (212) 546-2440
GREY GLOBAL GROUP REPORTS THIRD QUARTER RESULTS
New York, New York - November 11, 2003--Grey Global Group Inc. (NASDAQ: GREY)
today reported its results for the third quarter of 2003.
Results
- -------
The Company reported consolidated pretax profits grew 108.9% for the quarter to
$12.5 million and increased 70.3% to $35.8 million for the nine months ended
September 30, 2003 when compared to the respective prior periods. Net income was
$4.6 million for the third quarter of 2003 and $14.4 million for the first nine
months compared with $2.8 million and $8.7 million, respectively, for the
corresponding periods in 2002. Currency movements did not have a significant
impact on the consolidated net income.
Commissions and fees ("revenues") for the third quarter were $324.5 million, an
increase of 11.7% ($34.0 million) from the same quarter in 2002. For the nine
months ended September 30, 2003, revenues were $942.1 million, an increase of
8.8% ($75.9 million). Of the increase in revenues for the quarter, $22.4 million
was attributable to currency movements principally related to the weakening of
the dollar against the European currencies. Of the increase for the nine months
ended September 30, 2003, $59.7 million was attributable to such exchange rate
movements. Revenues in North America were up 3.3% for the quarter and 3.1% for
the nine months; on a constant currency basis, revenues for non-North American
operations increased by 4.7% for the quarter and approximately 1.0% for the nine
months.
Basic and diluted earnings per common share for the three months ended September
30, 2003 were $3.57 and $3.28, respectively, and for the nine months ended
September 30, 2003 were $10.30 and $9.45, respectively.
Company Comment
- ---------------
Stability and selected signs of growth appear to characterize the North American
market. Improvement is less noticeable in Europe, particularly in Northern
Europe, where economic weakness persists.
After the end of the quarter, the Company issued $150 million of 5% contingent
subordinated convertible debentures due 2033. The Company will use the proceeds
of the offering for general corporate purposes including acquisitions.
GREY/Third Quarter Results - 2003
Page Two
* * * * *
Grey Global Group ranks among the largest global communications companies in the
world. Grey Global Group operates branded independent business units in many
communications disciplines including general advertising, public
relations/public affairs, direct marketing, internet communications, healthcare
marketing, brand strategy and design, and on-line and off-line media services.
- --------------------------------------------------------------------------------
(Part of this announcement may contain forward-looking statements that involve
risks and uncertainties, and actual results could differ materially from those
projected in the forward-looking statements. The risks and uncertainties are
detailed from time to time in reports filed with the Securities and Exchange
Commission, including but not limited to the last section of the Management's
Discussion and Analysis entitled "Forward Looking Statements" contained in the
Company's Annual Report on Form 10-K and in other filings.)
(Chart follows)
Grey Global Group Inc. and Consolidated Subsidiary Companies
Condensed Consolidated Statements of Operations
<Table>
<Caption>
For the Three Months
Ended September 30 (Note 1)
------------------------------
(in thousands, except share and per share data) 2003 2002
- ------------------------------------------------------------------------------------------
Commissions and fees $ 324,486 $ 290,441
Income of consolidated companies before taxes on income 12,560 6,013
Provision for taxes on income 6,405 3,151
Minority interest applicable to consolidated companies (1,577) (595)
Equity in earnings of nonconsolidated affiliated companies 6 488
-----------------------------
Net income $ 4,584 $ 2,755
=============================
Weighted average number of common shares outstanding
-- Basic 1,284,261 1,244,686
=============================
-- Diluted 1,408,330 1,377,518
=============================
Earnings per common share (Note 2)
-- Basic $ 3.57 $ 1.92
=============================
-- Diluted $ 3.28 $ 1.76
=============================
For the Nine Months
Ended September 30 (Note 1)
-----------------------------
(in thousands, except share and per share data) 2003 2002
- --------------------------------------------------------------------------------------------
Commissions and fees $ 942,075 $ 866,104
Income of consolidated companies before taxes on income 35,800 21,017
Provision for taxes on income 17,793 10,278
Minority interest applicable to consolidated companies (4,029) (3,246)
Equity in earnings of nonconsolidated affiliated companies 421 1,246
-----------------------------
Net income $ 14,399 $ 8,739
=============================
Weighted average number of common shares outstanding
-- Basic 1,273,596 1,246,740
=============================
-- Diluted 1,399,596 1,381,952
=============================
Earnings per common share (Note 2)
-- Basic $ 10.30 $ 6.38
=============================
-- Diluted $ 9.45 $ 5.84
=============================
1. Unaudited and subject to year-end adjustments.
2. After giving effect to amounts attributable to redeemable preferred stock and for diluted net
income per common share to the (i) assumed exercise of dilutive stock options, (ii) shares
issuable pursuant to the Company's Senior Management Incentive Plan and (iii) assumed conversion
of the 8 1/2% Convertible Subordinated Debentures.
</Table>
# # #