Thank you, morning. John, good and
As results of the XXXX in line John our for quarter said, with were our first expectations.
continue changing landscape. while operating clients’ agencies ever marketing needs to Our in meet our an
Brain The increased from to quarter With U.S. changes Novus, in year, reported we due second of the the general Dispositions impact, over Acquisition my cycling known X.X%. beginning we in sold by growth quarter in forward. going X% Slide of this the components the X.X% revenue organic U.S. about within the FASB to recognition on which our new to revenue As through adopt in which as to organic year. XXX of of drivers or are remarks close detail expected the including million the early or net revenue of recent will effective growth including in quarter grew the of business the exceed included the our to reported which revenue the impact $XXX approximately new the was impact our XXXX. million summarized in quarter. media of for at dollar aware, the weakening range for in recognition more we’re of required impact to discuss of continued growth rates reduced acquisitions standard Companies lastly, revenue revenue, as $XX.X $XXX expectations to Germany. revenue you print X.X% The million QX revenue full the our regard quarter past the in and accounting currency offset partially billion. by Snow X.X%. disposition for the of of by come disposal revenue X.X% as reported impact FX, Later applying year. additions standard fell standard $X.X revenue X% Group the for changes in the first from our reduced of by And X, that ASC or I revenue the The
X items or revenue, to Turning of for QX last unchanged below X.X% increased versus with XXX to Slide income on income EBIT or operating margin the year. of the quarter million statement operating XX.X%
revenue million clients. due some would of approximately $X.X QX. rules followed to same our recognition EBIT XXX year, and of million items Our about QX to resulting on There last EBITDA did few XXX regarding year. margin compensation Had XX.X% change we last note EBITDA level also been have incentive with are increased a minor of of in profit as a X% timing impact in to higher of our QX or the was have recognition our operating margins. the the from a our ASC
timing for less year the expect However, minor the net than overall. also change to be this and impact QX because impact we related, the is principally
service adopted expense continued the QX amount part so as on net continue we of The XXXX-XX efficiencies, need income companywide on approximately Xst, our revenue The recognition comparable. was adoption and are costs interest-related ongoing components which investments us to businesses of new increase in operating profit to QX they the requires restate while post-employment re-classed interest balancing the We’ll standard, the the a reclassify to lower primarily not salary addition portion of our January presentation that to requires expense. we ASU the growth for pension million. internal periods pursue from an and prior office to new new accounting A have XXXX initiatives does future. XXXX of pre-tax in back to or and for in income. standard impact our our $X operations of both particularly pursue sustained the In
the our FX Additionally, were of our revenues, down for rates XXXX expense QX in operating local impact was negligible. expenses XX and million QX Net was in of given interest the same of for million vast majority million margin as versus changes of quarter fourth up denominated our XX.X the X.X the currencies XXXX. the the X.X million, versus quarter on
was approximately million As result expense interest reduction included these to the from compared in been interest expense QX due interest our XXXX the swaps. expenses expense million. a Gross income to interest $X.X compared adopted increased benefits ASU in in quarter. to has of the to income XXXX interest Run X.X and the quarter per $X.X net XXXX And Gross as was previously by fourth million $X XXXX-XX of increased a million compared and about approximately presentation. and also first a the we up current QX. our up expense been with was when be restated rate and for quarter by in to rate pension consistent primarily million about interest XXXX post-employment $X year in discussed, year’s portion approximately and has prior
Tax the statutory offsetting earnings, for first imposes driver Turning primary also tax down tax a partially lowest quarter effective rate the federal which lower rate. rate Act to from to the of taxes, rate U.S. our the a to XX%. tax Act as rate the on statutory last our effective effective minimum the Tax tax was tax XX.X% benefit result from XXXX lower XX.X% the reduced foreign rate of The year. was
year quarter. XX.X% in For because to rate potential approximately which X% Tax that of XXXX share-based of result the the tax estimate normalized the is fully it realized excludes our compensation benefits last exercises. the the totaled the million. subject than in versus the excludes be tax primarily tax successful option is and rate at QX XX.X% in than full compensation. a to This less XX.X% our any $XXX,XXX anticipating XXXX, an with million our and tax our claims was share-based changes allocation owned effective the from XXXX XXXX flat the of minority our rate tax any from the earnings up Act rate stock as difficult in Earnings affiliates impact last stock of year related also impact we’re to shareholders year reduction of of future excluding and would $XX versus price quarter, charge the $XX.X of QX benefit is by anticipated a connection approximately for in incremental $XXX,XXX of resolution of to which in lower incurred over subsidiaries foreign in our was of with
to million. $XXX income for first increased X.X% As quarter result, the a net
for Now quarter XXX.X for X.X% turning million. and to XXX our available diluted last the year the Income of for shareholders share common million Slide QX to X. versus quarter decreased count was
or $X.XX, As XX.X%. a EPS diluted quarter our result, first share $X.XX was up for a the
of under our timing the arrangements, fee a our XXX, we retainer operating X our will client client including results. as impact to does our commission that determined client XXXX summary, after have including expected based on me Slide the detailed agreements, by revenue fixed annual standard the our our based the does performance, let new or on not back Turning new standard review we Consistent disclosure revenue the of or discussion new ASC when the detailed in arrangements. impact standard standard. start recognition which reviews compensation the with of method reviewing would details revenue materially of revenue a have impact the businesses report, recognize not majority our of material we or impact In
a the recognition revenue standard achievement for or we evaluated This performed when specific were standard our included services New goals deliver. services requires performance in be of to quantitative are of Previously, often early recognition included total performance contract period. incremental are lag agreements. or the that resulting revenue year be when goals to these or in in performance result year objectives timing these incentive in estimated of client against occurred can new the impacted incentives achieved. were in certain certain of provisions on the or recognized qualitative year. qualitative was acknowledged incentives late the in The the the in The and our subsequent throughout compensation as and items by the client quantitative the consideration the
policy. were impact $XX standard Under one as XXX Additionally, ASC and approximately revenue results, CRM recognition revenue if million our method modified of expense standard, Because of in QX for Slide standard followed method, of we 'XX XXX, previous QX for the of in XX was in consumer not of XXXX of a to adopted the our new experience operating the retrospective our results we by purposes, a comparability resulted new we present we restated. Accordingly, this applied on XXXX and adoption. previous revenue not a reduction agencies. material
expect for reduction and million as for $X.X the approximately the our quarter been XXXX approximately our in see impact were with the revenue of as year. we material. cash by roughly our first or This we previously standard, would rules on in the full in new revenue mentioned, well in the flow EBIT from the And not XXXX of reported the revenue remainder QX impact applying as year, the XX.X approximately line have a we estimate million operations balance results same recognition in XXXX of higher. as and quarters anticipated EBIT is the and discussed, I last sheet million recognition reduction of XXX or As the reduced revenue followed revenue had to impact in X.X%
EBIT to related, expect net be year However, minor. impact we on the because for principally the timing the is impact
forward, As business the numbers quarter. on be the our of in reported mix that we particular will specific go impact based quarterly ultimately on
Turning to FX.
the first to currencies weaken against foreign almost year-over-year U.S. During quarter, the operate all continued dollar we the in. of
in $XXX the major currency rates or to due changes the by of during the A which our in revenue half FX million in X.X% to be increased the reported driver revenue result, a for euro As the in of quarter. FX of revenue impact for increase accounted changes continues movement nearly quarter.
second The revenues of the impact as the our continued by XXXX forward UK of against the they Brazilian weakened dollar, quarter, exceed net of renminbi dollar of could increase the FX media acquisitions next X.X% to Dispositions stay $XXX dispositions print disposal the X.X%. recent cycling the second million year. the revenue acquisitions first have from to pound, alone or Additionally, quarter currently a our in in Canadian positive early how FX. are, we the impact X% on the close full quarter Obviously against due Australian revenue for looking we the offsetting in approximately dollar. slightly But XXXX. the making if real in business which the where the over few the our strengthened Novus, months Chinese of speculative. move and balance quarter let in decreased is Also quarter of through an assumption on foreign the currency and sold revenue dollar only will come rates currencies to the approximately the during
our be last current net about flat will Based the quarter to the that second So that the cycle XXXX we’ve impacted of dispositions activity XXXX. and for and X% of expectations reduce will positive remainder and X% of revenue our date disposition in effect the transactions since significantly range a QX, revenue will modest acquisition we by of Novus our on QX while between divestiture. are the there in early then impact represents the by in will second through quarter, that completed be quarter
As X.X% and for enhance mixed finally, And to make first that will for our a continue our priority. we’ve our U.S. of businesses our were of strategic will global remains the $XX quarter we of And for growth in the acquisitions the strategic strategic positive returned we also Asian evaluate in the quarter, was consistent positive. that pursue in on organic European was growth by way. performance with regions UK our in plan. led positive The current are marginally disciplines and portfolio the up up service to done million five within agencies agency. the context Each offerings total. investments or past, disciplines continue to and organic our basis quarter. our organically Geographically, the internal
However, of resulted negative America shows the weakness Slide our for slightly being mix in X business discipline. quarter. in North Canada by
For advertising the for XX% for and services. marketing was and first quarter, the XX% split
up and was the primarily discipline this by up on up rest mixed. and for As the quarter, by the X.X%. agencies performance in CRM Hearts our offsetting businesses negative. Advertising the national our quarter. while still Science portion events Olympics while was advertising continued growth and was by marginally direct CRM business Results and the X.X% were their marketing of & our for challenges growth advertising of quarter. discipline organic Winter in February. Asia. execution was attributed OMD, be discipline, media and our activity consumer support in digital in results up be saw of events by experience was A mixed the with PHD organic led marketing Shopper the faced domestically to X.X% strength strong the global branding for can increased to
were positive down healthcare the Performance America not-for-profit way negative nice marketing, slightly all quarter. declines which in with field performance both of of a and in a and positive while led for the fourth the in UK geographic a by was in specialty across North essentially Performance Continental research were and recovery flat the was balanced Asia PR by America Our both growth was regions. region. after businesses up quarter, And were and sale The mixed with the Latin offset quarter. Europe all X.X%, merchandizing point up and was production. point. discipline seven-tenths
the reminder, the we a realignment better services to services. of of disciplines detail XXXX, in our agencies As regarding capture our our expanded reflect marketing the provided to we QX revised scope
into and sales marketing our has execution categories. consulting agencies, our custom our this consumer precision shopper As agencies which includes direct other two field as CRM agencies. been as CRM which realignment, includes a and of and communication branding sale marketing agencies digital marketing Omnicom disaggregated experiential as discipline specialized and well group result experience separate marketing and of and our merchandizing and CRM marketing, and point marketing well as support, agencies support
the historical healthcare realigned mix the and Asia UK, also rest the our America quarterly XXXX North provided On business, Latin see that you regional XX% XX% for renamed We the the details services. remainder and Middle and communication Pacific, discipline. Europe, during exclusively of have markets. East for for split On for for the communications the America, so the discipline offering Africa XX% which it of agencies and marketing data the in reflects X% XX, can of includes that Slide XX% now quarter specialty Slide we X realignment was
revenue performance by one-tenth details our in region, America down marginally Canada. by of organic Turning our business offset a of was was the in percent. Marginally North a decrease performance to from at growth positive U.S.
our softness. The was X% their saw The agencies PR UK region, from down the our in performance the While of Results businesses more The was region media rest businesses. across up up quarter. organically of decreases quarter. X.X% of as events were in and fourth research in solid the marketing this and with in offsetting after field PR healthcare well we advertising and healthcare our a most Europe advertising, continued than as positive media, disciplines agencies. and quarter
Within Spain disciplines. the again of country, led our France. also the had in we and all Eurozone way strong saw growth performance Netherlands once we the in By but
to continued organic Additionally, was Belgium lagged Growth major our the markets few a The behind. well. in growth and positive Italy past Zealand Asia up the Europe region, to continue be Brazil negative Greater of at the well we as organic performed had saw well and India, quarter. the but level was see we including across Australia, Germany in first lower and America X.X% Eurozone China. in region Singapore while Pacific X% Latin quarters. as in than growth Japan, outside as New
climate confident some the is perform regarding In the the in strong the are in region, down it ongoing by the there region, a a nonrecurring media be difficult our decreased our and to had local While political to primarily UAE. signs and makes positive quarter the Africa, clients was sustained Colombia smallest are projects, entering stability. which preliminary Brazil economy, in due activity that they in Elsewhere while our period Middle in agencies continued to East region well. of Mexico
quarter Comparing X. for business Slide We by to the sector. present mix first XXXX, Turning of fairly steady. revenue to our is mix the XXXX industry
of XXXX. increase On flow, million represents Now in we quarter the three X, over of turning $XXX to in Slide cash capital, that free flow our which the can changes of months performance. see generated cash excluding you million $XX an first working first about
from non-controlling As of to for our paid increase shareholders the just our totaled approved All-in, free on repurchase which of shares first share the and uses was three the X% about in $XXX the year. our we common million were due per under $XX the XX activity repurchases reduction was XXX last reflective million. of employee that dividend Dividends $XXX past to primary cash similar spent X, the flow stock proceeds stock year. offset million last dividends by million totaled outstanding common under to during October quarter. we payments, what shareholders earn-out our net were by million first the plans issuances in share quarterly of in million, our over paid have cash the Slide was including our while expenditures interest months to received repurchased totaled partially Acquisitions, capital XXX and
Turning to X. Slide
$X.X the debt at of structure the is total billion. capital our Regarding quarter, end our
X.X Compared in cash negatively a cash the typical cash our in the of time end historically XX, are was the XXXX. million. net nearly cash debt net balance billion, XXX operating debt of $X.X cash net of past These during of our which of increased quarter rates XXX of on in up our million. working approximately the is XX increases $XX approximately December result flow the Our was exchange that the capital cash down the increase decrease at over uses occur position debt result billion in our compared on net about to the The $XXX primarily year-end and free $XXX were of our by this effect by is by flow reductions of use of cash excess first free that by QX XX effect partially offset the increased quarter cash exchange and on million. by in rates million but partially last the months to million capital net debt past over generating million. about impacted our offset year, balance The These months. $XX changes approximately
bonuses tax advantage working and payment the Comparable so this QX. of capital last payments in a working item was a to of negatively impacted effect in to the these was this rates. the also of certain change bonus of The capital timing approximately QX between Our as in XXXX. million of of QX in of result compared year, reduction U.S. items of acceleration take net a was made QX the were quarter XXX
solid. debt our remain for As ratios, they
and to interest debt EBITDA was quite coverage ratio net Xx. expense, to our strong. our to XX.Xx but the to interest debt ratio increase our total decreased due EBITDA Our year-over-year was in ratio And X.Xx remains
XX. Slide to Turning
through We development continue of internal well initiatives prudently to a manage and price and combination the company build focused acquisitions.
XX.X%. return XXst XXXX the resulting of of totaled net impact and year-over-year rate our in are both the a which from on to share past to dividend which while our including of our XX repurchases, bar XXXX impact tax our during And the finally to capital Act. in we charge That the the billion the down have income of offset XX.X% show will And XX plus payout ratio results shows on be on cumulative the billion. shareholders of the should positive net sum cash same cumulative period passage shareholders The chart to return by call going March we’ve XX, the note line to with ratio your For cumulative additional took for on Tax months, over connection lower ask the XX.X we’re But Thank supplemental Please Slide years. equities cash presentation to than due QX that the track you. more top last the materials number operator in the our tax last in a we going the invested forward. the return Both return the cumulative point, of concludes that for of over XXX% included decade. And prepared our remarks. the this questions. other at open slides review. on XX.X
