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FCB REPORTS SECOND QUARTER RESULTS

 FCB REPORTS SECOND QUARTER RESULTS
 CHICAGO, Aug. 11 /PRNewswire/ -- Foote, Cone & Belding


Communications, Inc. (NYSE: FCB) today reported net income and revenue increases for both the quarter and first six months of 1992. Second quarter net income reached a record level for the company.
 Net income for the second quarter totaled $7,624,000 or $.71 per share in 1992, up 13.7 percent compared to $6,704,000 or $.64 per share in 1991. Second quarter operating margin as a percent of revenue increased from 7.3 percent in 1991 to 7.8 percent in 1992. Net income for the first half of 1992 increased 14.5 percent to $8,861,000 or $.82 per share compared to 1991.
 QUARTER ENDED JUNE 30, 1992
 Combined revenues (including FCB's proportionate share of its European joint venture) increased 13 percent to $162,369,000 in 1992 from $143,693,000 in 1991. FCB consolidated revenues totaled $86,550,000, up 2.2 percent from 1991 second quarter revenues of $84,698,000.
 In addition, FCB's proportionate share of its European joint venture revenues rose 28.5 percent to $75,819,000 in 1992 from $58,995,000 in 1991.
 Operating margin for consolidated operations increased 9.9 percent to $6,750,000 in 1992, compared with $6,144,000 in 1991. Reflecting FCB's continuing efforts to tighten its operating expense structure, consolidated operating expenses increased at a rate of only 1.6 percent between years, compared to the 2.2 percent increase in revenues.
 Equity earnings, which consist primarily of FCB's share of its European joint venture operation, increased 17 percent from $4,249,000 in 1991 to $4,970,000 in 1992.
 SIX MONTHS ENDED JUNE 30, 1992
 Combined revenues increased 11.7 percent to $299,493,000 in 1992 from $268,096,000 in 1991. FCB consolidated revenues totaled $165,261,000, up 3.1 percent from 1991 six-month revenues of $160,286,000. Additionally, FCB's proportionate share of its European joint venture revenues rose 24.5 percent to $134,232,000 in 1992 from $107,810,000 in 1991.
 Operating margin for consolidated operations was $11,038,000 or 6.7 percent of revenues in 1992 compared to $7,132,000 or 4.4 percent of revenues in 1991. With the continued improvement in the company's expense structure, management expects a continuation of favorable earnings comparisons for the balance of the year.
 ACQUISITIONS AND JOINT VENTURES
 During the second quarter, FCB continued to aggressively pursue acquisitions to bolster the strength of its global network in North America, Latin America and Asia-Pacific:
 -- In North America, a joint venture was formed between Auger Babeux, a growing creative force in the Quebec province of Canada, and FCB's existing Montreal operation. The new unit, Auger Babeux/FCB, now ranks among the top 10 agencies in Quebec.
 -- In Latin America, FCB acquired Nucleo Publicidade in Sao Paulo, Brazil, and merged it with FCB/Siboney Publicidade, the company's existing operation in that city. This moves FCB/Siboney into the top 10 agencies in Brazil and adds Bunge & Born Group, the multibillion dollar international conglomerate that has interests in packaged goods, liquor, hard goods, textiles and insurance, to its client roster.
 -- In Asia-Pacific, FCB acquired the clients of the former JMA agency in Perth, Australia, and merged it with the company's existing operation in that city to form Jenkin Shorter/FCB. This elevated FCB Australia to the rank of eighth largest agency group in that country.
 NEW BUSINESS
 New business gains in the second quarter included Sunbeam-Oster (FCB/Chicago); additional assignments from Bell Atlantic (FCB/Philadelphia); the pan-European account of Le Club Mediterranee (Publicis-FCB, Paris); Colgate-Palmolive products (FCB/Mexico and Prakit/FCB, Thailand), and Philippines Airlines (Basic/FCB, Philippines). The company's Asia-Pacific operations have achieved record new business results during the first half of 1992.
 During the second quarter, FCB/Direct, the company's direct marketing unit; IMPACT, its sales promotion unit; VICOM/FCB, its healthcare advertising subsidiary; and Wahlstrom & Co., its directory advertising subsidiary, all added significant new assignments from such clients as Ace Hardware; Kraft General Foods; Colgate-Palmolive; Pacific Bell and Dun & Bradstreet Information Services.
 FCB Chairman and CEO Bruce Mason said, "We're on track and right where we expected to be. The expense side of the equation is being tightly controlled; our balance sheet has been cleaned up. We've begun building the top line through a mix of new business and strategic acquisitions."
 Foote, Cone & Belding ranks as the eighth largest worldwide advertising company and the largest agency in the United States. Its network includes 176 offices in 43 countries, with worldwide billings, including Publicis-FCB European operations, totaling more than $6 billion.
 NOTE: Pro Forma and Consolidated Financial Summaries follow:
 FOOTE, CONE & BELDING COMMUNICATIONS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 (000s except per-share amounts)
 Quarter Ended Percentage
 June 30, Increase
 1991 1992 (Decrease)
 REVENUES $ 84,698 $ 86,550 2.2
 OPERATING EXPENSES:
 Salaries and other employee benefits 43,648 49,563 (0.2)
 Office and general expenses 25,699 25,352 (1.4)
 Direct marketing cost of goods sold 3,212 4,885 52.1
 TOTAL OPERATING EXPENSES $78,554 $79,800 1.6
 Operating margin $ 6,144 $ 6,750 9.9
 Other Income (expense) (1,452) (1,407) (3.1)
 Income before provision for
 taxes on income $ 4,692 $ 5,343 13.9
 Provision for federal, foreign
 and state income taxes 2,220 2,642 19.0
 $ 2,472 $ 2,701 9.3
 Minority interest expense (17) (47) 176.5
 Equity in earnings (losses) of
 affiliated companies 4,249 4,970 17.0
 NET INCOME $ 6,704 $ 7,624 13.7
 Per Common and Common
 Equivalent Share $ 0.64 $ 0.71 10.9
 Average number of common and common
 equivalent shares outstanding 10,516 10,613 2.8
 Operating margin percentage 7.3 pct 7.8 pct
 Six Months Ended Percentage
 June 30, Increase
 1991 1992 (Decrease)
 REVENUES $160,286 $165,261 3.1
 OPERATING EXPENSES:
 Salaries and other employee benefits 97,124 97,123 (0.0)
 Office and general expenses 49,373 47,894 (3.0)
 Direct marketing cost of goods sold 6,657 9,206 38.3
 TOTAL OPERATING EXPENSES $153,154 $154,223 0.7
 Operating margin $ 7,132 11,038 54.8
 Other income (expense) (2,189) (2,290) 4.6
 Income before provision for
 taxes on income $ 4,943 $ 8,748 77.0
 Provision for federal, foreign
 and state income taxes 2,345 4,324 84.4
 $ 2,598 $ 4,424 70.3
 Minority interest expense (19) (72) 278.9
 Equity in earnings (losses) of
 affiliated companies 5,163 4,509 (12.7)
 NET INCOME $ 7,742 $ 8,861 14.5
 Per common and common
 equivalent share $ 0.74 $ 0.82 10.8
 Average number of common and common
 equivalent shares outstanding 10,463 10,776 3.0
 Operating margin percentage 4.4 pct 6.7 pct
 FOOTE, CONE & BELDING COMMUNICATIONS, INC. AND SUBSIDIARIES
 PRO FORMA SUMMARY OF OPERATING RESULTS (UNAUDITED)
 QUARTER ENDED JUNE 30, 6 MONTHS ENDED JUNE 30,
 1991 1992 1991 1992
 Combined Revenues:
 FCB $ 84,698 $ 86,550 $160,286 $165,261
 European Joint Venture(A) 58,995 75,819 107,810 134,232
 $143,693 $162,369 $268,096 $299,493
 Combined Operating Margin:
 FCB $ 6,144 $ 6,750 $ 7,132 $ 11,038
 European Joint Venture(A) 9,758 13,005 13,464 14,966
 $ 15,902 $ 19,755 $ 20,596 $ 26,004
 FCB Net Income:
 FCB (ex Europe) $ 2,529 $ 2,938 $ 2,768 $ 4,757
 European Joint Venture(A) 4,175 4,686 4,974 4,104
 $ 6,704 $ 7,624 $ 7,742 $ 8,861
 (A) Represents FCB's proportionate share of Publicis-FCB European operations.
 -0- 8/11/92
 /CONTACT: Terry Ashwill, FCB CFO, 312-751-7002, or Owen Dougherty, FCB corporate communications, 312-751-7789/
 (FCB) CO: Foote, Cone & Belding Communications, Inc. ST: Illinois IN: ADV SU: ERN


PS -- NY092 -- 9130 08/11/92 16:54 EDT
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