-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CRFiqmMAewHP+CI8Ewmi4zTmIW+wn5gPFjboaQq/yyXlWeTRJ06xF08NUZFKeQrG FlU2YaSp4yM9bw18+kpB0Q== 0000950123-00-005074.txt : 20000516 0000950123-00-005074.hdr.sgml : 20000516 ACCESSION NUMBER: 0000950123-00-005074 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREY ADVERTISING INC /DE/ CENTRAL INDEX KEY: 0000043952 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 130802840 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-07898 FILM NUMBER: 633327 BUSINESS ADDRESS: STREET 1: 777 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2125462000 MAIL ADDRESS: STREET 1: 777 THIRD AVE STREET 2: 777 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 10-Q 1 GREY ADVERTISING INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended March 31, 2000 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-7898 GREY ADVERTISING INC. ---------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 13-0802840 - ------------------------------- --------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization) 777 Third Avenue, New York, New York 10017 - ------------------------------------ ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, 212-546-2000 including area code: ------------ NOT APPLICABLE Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- As of April 30, 2000, the total number of shares outstanding of Registrant's Common Stock, par value $1 per share ("Common Stock"), was 1,010,752 and of Registrant's Limited Duration Class B Common Stock, par value $1 per share ("Class B Common Stock"), was 231,415. 2 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES INDEX PAGE NO. -------- Financial Statements: Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Other Information 13 Signatures 14 Index to Exhibits 15 2 3 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31, 2000 1999 (in thousands, except share and per share data) (UNAUDITED) (A) ------------------------- ------------------------- ASSETS Current assets: Cash and cash equivalents $ 169,099 $ 306,556 Marketable securities 6,926 5,581 Accounts receivable 970,067 940,612 Expenditures billable to clients 59,117 51,991 Other current assets 101,250 93,207 ------------------------- ------------------------- Total current assets 1,306,459 1,397,947 Investments in and advances to nonconsolidated affiliated companies 17,895 17,961 Fixed assets-at cost, less accumulated depreciation of $163,550 in 2000 and $158,370 in 1999 133,226 126,939 Marketable securities 21,222 22,429 Intangibles-net of accumulated amortization of $45,849 in 2000 and $42,818 in 1999 157,536 157,115 Other assets-including loans to executive officers of $5,247 in 2000 and 1999 104,621 86,863 ------------------------- ------------------------- Total assets $ 1,740,959 $ 1,809,254 ========================= =========================
See accompanying notes to condensed consolidated financial statements. (A) The condensed consolidated balance sheet has been derived from the audited financial statements at that date. 3 4 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
MARCH 31, DECEMBER 31, 2000 1999 (in thousands, except share and per share data) (UNAUDITED) (A) ------------------------------ ---------------------------- LIABILITIES AND COMMON STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,112,752 $ 1,161,508 Notes payable to banks 56,894 68,500 Accrued expenses and other 202,131 208,254 Income taxes payable 20,563 16,572 ------------------------------ ---------------------------- Total current liabilities 1,392,340 1,454,834 Other liabilities, including deferred compensation of $45,967 in 2000 and $44,160 in 1999 70,082 75,260 Long-term debt 78,025 78,025 Minority interest 18,776 19,620 Redeemable Preferred Stock-at redemption value; par value $1 per share; authorized 500,000 shares; issued and outstanding 30,000 shares in 2000 and 1999 10,171 10,150 Common stockholders' equity: Common Stock-par value $1 per share; authorized 10,000,000 shares; issued 1,230,338 shares in 2000 and 1,228,534 shares in 1999 1,230 1,229 Limited Duration Class B Common Stock-par value $1 per share; authorized 2,000,000 shares; issued 260,044 shares in 2000 and 261,224 shares in 1999 260 261 Paid-in additional capital 40,315 39,763 Retained earnings 194,870 191,042 Accumulated other comprehensive loss Cumulative translation adjustment (18,754) (15,462) Unrealized gain (loss) on marketable securities 447 (141) ------------------------------ ---------------------------- Total accumulated other comprehensive loss (18,307) (15,603) ------------------------------ ---------------------------- Loans to officer used to purchase Common Stock and Limited Duration Class B Common Stock (4,726) (4,726) ------------------------------ ----------------------------- 213,642 211,966 Less-cost of 221,465 and 218,514 shares of Common Stock and 26,937 and 26,937 shares of Limited Duration Class B Common Stock held in treasury in 2000 and 1999, respectively 42,077 40,601 ---------------------------------- ------------------------ Total common stockholders' equity 171,565 171,365 ---------------------------------- ------------------------ Total liabilities and common stockholders' equity $1,740,959 $1,809,254 ================================== ========================
See accompanying notes to condensed consolidated financial statements. (A) The condensed consolidated balance sheet has been derived from the audited financial statements at that date. 4 5 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, (in thousands, except share and per share data) 2000 1999 ----------------------------------- ---------------------------------- Commissions and fees $ 288,708 $ 227,907 Expenses: Salaries and employee related expenses 187,404 151,635 Office and general expenses 89,496 73,215 ----------------------------------- ---------------------------------- 276,900 224,850 ----------------------------------- ---------------------------------- 11,808 3,057 Other income-net 1,151 960 ----------------------------------- ---------------------------------- Income of consolidated companies before taxes on income 12,959 4,017 Provision for taxes on income 6,911 3,000 ----------------------------------- ---------------------------------- Income of consolidated companies 6,048 1,017 Minority interest applicable to consolidated companies (1,358) (1,187) Equity in earnings of nonconsolidated affiliated companies 464 277 ----------------------------------- ---------------------------------- Net income $ 5,154 $ 107 =================================== ================================== Weighted average number of common shares outstanding: Basic 1,233,588 1,237,681 Diluted 1,342,259 1,237,681 Earnings per common share: Basic $4.11 $0.20 Diluted $3.81 $0.20 Dividends per common share $1.00 $1.00
See accompanying notes to condensed consolidated financial statements. 5 6 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, (in thousands, except share and per share data) 2000 1999 -------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 5,154 $ 107 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization of fixed assets 8,826 7,301 Amortization of intangibles 3,031 2,398 Deferred compensation 2,599 (1,882) Equity in earnings of nonconsolidated affiliated companies, net of dividends received of $12 in 2000 and $35 in 1999 (452) (242) Loss (gains) from the sale of marketable securities 22 (66) Minority interest applicable to consolidated companies 1,358 1,187 Restricted stock expense 195 131 Deferred income taxes (600) 293 Changes in operating assets and liabilities (102,437) (75,473) --------------------------------------------------------------- Net cash used in operating activities (82,304) (66,246) INVESTING ACTIVITIES Purchases of fixed assets (17,781) (11,975) Trust fund deposits (1,134) (1,240) Decrease in investments in and advances to nonconsolidated affiliated companies 518 630 Purchases of marketable securities (501) (101) Proceeds from the sale of marketable securities 920 29,708 Purchases of investment securities (14,966) - Increase in intangibles, primarily goodwill (9,800) (5,417) --------------------------------------------------------------- Net cash (used in) provided by investing activities (42,744) 11,605
6 7 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)
FOR THE THREE MONTHS ENDED MARCH 31, (in thousands, except share and per share data) 2000 1999 -------------------------------- ---------------------------------- FINANCING ACTIVITIES Net repayments of short-term borrowings (8,835) (566) Common shares acquired for treasury (1,606) (98) Cash dividends paid on common shares (1,244) (1,242) Cash dividends paid on redeemable Preferred Stock (60) (60) Issuance of restricted stock 3 4 Proceeds from exercise of stock options 164 722 -------------------------------- ---------------------------------- Net cash used in financing activities (11,578) (1,240) Effect of exchange rate changes on cash (831) (1,447) -------------------------------- ---------------------------------- Decrease in cash and cash equivalents (137,457) (57,328) Cash and cash equivalents at beginning of period 306,556 153,816 -------------------------------- ---------------------------------- Cash and cash equivalents at end of period $ 169,099 $ 96,488 ================================ ==================================
See accompanying notes to condensed consolidated financial statements. 7 8 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share data) 1. As permitted by the Securities and Exchange Commission, the accompanying unaudited Consolidated Financial Statements and Notes thereto have been condensed and, therefore, do not contain all disclosures required by generally accepted accounting principles. Reference should be made to the Company's Annual Report on Form 10-K for the year ended December 31, 1999 filed with the Securities and Exchange Commission. 2. The financial statements as of March 31, 2000 and for the three months ended March 31, 2000 and 1999 are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 3. The results of operations for the three months ended March 31, 2000 are not necessarily indicative of the results to be expected for the full year. 4. The provision for taxes on income results in an effective tax rate that is greater than the Federal statutory rate principally due to state and local income taxes and an effective foreign tax rate in excess of the Federal statutory rate and, in 1999, the non-recognition of tax benefits of certain international net operating losses. 5. As of March 31, 2000 and December 31, 1999, the Company had outstanding 20,000 shares of Series I Preferred Stock, and 5,000 shares each of its Series II and Series III Preferred Stock. The holder of these shares is the Chairman and Chief Executive Officer of the Company. Each share of Preferred Stock is to be redeemed by the Company at a price equal to the book value per share attributable to one share of Common Stock and one share of Class B Common Stock (subject to certain adjustments) upon redemption, less a fixed discount established upon the issuance of the Preferred Stock. The holder of each class of Preferred Stock is entitled to receive cumulative preferential dividends at the annual rate of $.25 per share, and to participate in dividends on one share of the Common Stock and one share of the Class B Common Stock to the extent such dividends exceed the per share preferential dividend. The redemption date for the Series I, Series II and Series III Preferred Stock is fixed at April 7, 2004. 8 9 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (in thousands, except share and per share data) 6. The computation of basic earnings per common share is based on the weighted average number of common shares outstanding and, for diluted earnings per common share, is adjusted for the dilutive effect, if any, of the assumed exercise of dilutive stock options, shares issuable pursuant to the Company's Senior Management Incentive Plan and the assumed conversion of the Company's 8 1/2% Convertible Subordinated Debentures. For the purpose of computing basic earnings per common share, the Company's net income is adjusted by dividends paid on the Company's Preferred Stock and by the change in redemption value of the Company's Preferred Stock during the period. For the purpose of computing diluted earnings per common share, net income is also adjusted by the interest savings, net of tax, on the assumed conversion of the Company's 8 1/2% Convertible Subordinated Debentures. Additionally, in computing diluted earnings per common share, the average quarterly market price is used to determine the number of shares which would be assumed to be repurchased. The market price for a share of Class B Common Stock, which is not publicly traded, is deemed to be equal to the market price of a share of Common Stock, into which a share of Class B Common Stock may be converted at the option of the holder, as of the date such valuation is made. The following table shows the amounts effecting income used in computing earnings per common share ("EPS") and the weighted average number of shares of dilutive potential common stock:
FOR THE THREE MONTHS ENDED MARCH 31, ---------------------------------------------------- 2000 1999 ---------------------------------------------------- BASIC EARNINGS PER COMMON SHARE WEIGHTED AVERAGE SHARES 1,233,588 1,237,681 ---------------------------------------------------- Net income $ 5,154 $ 107 Effect of dividend requirements and the change in redemption value of redeemable Preferred Stock (82) 140 ---------------------------------------------------- NET EARNINGS USED IN COMPUTATION $ 5,072 $ 247 ---------------------------------------------------- PER SHARE AMOUNT $4.11 $0.20 ==================================================== DILUTED EARNINGS PER COMMON SHARE Weighted average shares used in the Basic EPS calculation 1,233,588 1,237,681 Net effect of dilutive stock options and stock incentive plans (2) 57,543 (1) - Assumed conversion of 8 1/2% Convertible Subordinated Debentures 51,128 (1) - ---------------------------------------------------- ADJUSTED WEIGHTED AVERAGE SHARES 1,342,259 1,237,681 ---------------------------------------------------- Net earnings used in the Basic EPS calculation $ 5,072 $ 247 8 1/2% Convertible Subordinated Debentures interest, net of income tax effect 35 (1) - ---------------------------------------------------- NET EARNINGS USED IN COMPUTATION $ 5,107 $ 247 ---------------------------------------------------- PER SHARE AMOUNT $3.81 $0.20 ====================================================
(1) For the first quarter of 1999, the assumed exercise of stock options, issuances under stock incentive plans and the assumed conversion of the 8 1/2% Convertible Subordinated Debentures each had an anti-dilutive effect. As such, these items have been excluded from the diluted EPS calculation for the period. (2) Includes 15,723 shares expected to be issued pursuant to the Senior Management Incentive Plan for the three months ended March 31, 2000. Due to their anti-dilutive effect, shares expected to be issued pursuant to the Senior Management Incentive Plan for the comparable period in 1999 were excluded. 9 10 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (in thousands, except share and per share data) 7. The Company is not engaged in more than one industry segment. The Company evaluates performance by geographic region based on profit or loss before income taxes. Commissions and fees are attributed to the geographic region that generates the billings. Commissions and fees, operating profit, and income of consolidated companies before taxes on income for the three months ended March 31, 2000 and 1999, and related identifiable assets at March 31, 2000 and December 31, 1999 are summarized below according to geographic region:
UNITED STATES EUROPE --------------------------- ----------------------------- 2000 1999 2000 1999 ------------- ------------- -------------- -------------- Commissions and fees $128,311 $ 99,117 $125,970 $106,427 ------------- ------------- -------------- -------------- Operating profit (loss) 5,678 5,521 7,841 2,058 ------------- ------------- -------------- -------------- Income (loss) of consolidated companies before taxes on income 7,882 7,098 6,884 1,720 ------------- ------------- -------------- -------------- Identifiable assets 731,143 796,657 739,976 752,662 ------------- ------------- -------------- -------------- Investments in and advances to nonconsolidated affiliated companies Total assets
OTHER CONSOLIDATED --------------------------- ----------------------------- 2000 1999 2000 1999 --------------------------- ----------------------------- Commissions and fees $ 34,427 $ 22,363 $ 288,708 $ 227,907 ------------- ------------- -------------- -------------- Operating profit (loss) (1,711) (4,522) 11,808 3,057 ------------- ------------- -------------- -------------- Income (loss) of consolidated companies before taxes on income (1,807) (4,801) 12,959 4,017 ------------- ------------- -------------- -------------- Identifiable assets 251,945 241,974 1,723,064 1,791,293 ------------- ------------- Investments in and advances to nonconsolidated affiliated companies 17,895 17,961 -------------- -------------- Total assets $ 1,740,959 $ 1,809,254 -------------- --------------
8. During the first quarter of 2000 and 1999, total comprehensive income (loss) amounted to $2,450 and $(1,055), respectively. The difference between net income and total comprehensive income (loss) is the result of the change in the translated value of the net assets of the Company's international operations due to the change in value of the United States dollar versus other currencies 10 11 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS (in thousands, except share and per share data) RESULTS OF OPERATIONS Income from commissions and fees ("gross income") increased 26.7% during the first quarter of 2000 when compared to the same period in 1999. Absent exchange rate fluctuations, gross income increased 31.5% in the three months ended March 31, 2000 when compared to the same period in 1999. In the first quarters of 2000 and 1999, respectively, 44.4% and 43.5% of consolidated gross income was attributable to domestic operations and 55.6% and 56.5% to international operations. In the first quarter of 2000, gross income from domestic operations increased 29.5% versus the respective prior period, while gross income from international operations increased 24.5%, (33.0% absent exchange rate fluctuations) for the first quarter of 2000 when compared to the same period in 1999. The increase in gross income primarily resulted from the impact of new business and the continued growth of the Company's media and marketing communications operations, and from acquired companies. Salaries and employee related expenses increased 23.6% in the first quarter of 2000 when compared to the respective prior period. Office and general expenses increased 22.2% for the three months ended March 31, 2000 versus the comparable prior period. These increases are slightly less but generally in line with the growth in gross income. Inflation did not have a material effect on revenue or expenses during 2000 or 1999. Minority interest applicable to consolidated companies increased by $171 in the first quarter of 2000 as compared to the respective prior period. The increase is primarily due to changes in the level of profits of majority-owned companies. Equity in earnings of nonconsolidated affiliated companies increased by $187 in the first quarter of 2000 as compared to the respective prior period. The fluctuations are primarily due to changes in the level of profits of nonconsolidated affiliated companies. The effective tax rate is 53.3% in the first quarter of 2000 versus 74.7% in the same period in 1999. The rate was significantly higher in the first quarter of 1999 because the Company decided it was not prudent to recognize the future tax benefits attributable to net operating losses at certain international subsidiaries. Net income was $5,154 in the first quarter of 2000 as compared to $107 in the respective prior period. Basic and diluted earnings per common share for the first quarter of 2000 were $4.11 and $3.81 as compared to $0.20 for both basic and diluted, respectively, in the comparable quarter in 1999. The increase in net income is attributable principally to increased gross income at the Company's media and marketing communications operations, and the reduction of operating losses at certain international subsidiaries. 11 12 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS (CONTINUED) (in thousands, except share and per share data) LIQUIDITY AND CAPITAL RESOURCES Working capital decreased by $28,994 to a deficit of $85,881 at March 31, 2000, versus a deficit of $56,887 at December 31, 1999. Cash and cash equivalents decreased by $137,457 from $306,556 to $169,099 at March 31, 2000. The decrease in cash and cash equivalents is largely attributable to the timing of collections of accounts receivable and billing of expenses to clients versus payments to trade vendors. Domestically, the Company has committed lines of credit totaling $60,000. These lines of credit were partially utilized during the three months ended March 31, 2000 and 1999 to secure obligations of selected foreign subsidiaries. There was $21,200 and $20,500 outstanding under these credit lines as of March 31, 2000 and December 31, 1999, respectively. Other lines of credit are available to the Company in foreign countries in connection with short-term borrowings and bank overdrafts used in the normal course of business. There was $35,694 and $48,000 outstanding at March 31, 2000 and December 31, 1999, respectively. FORWARD LOOKING STATEMENTS In connection with the provisions of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), the Company may include Forward Looking Statements (as defined in the Reform Act) in oral or written public statements issued by or on behalf of the Company. These Forward Looking Statements may include, among other things, plans, objectives, projections, anticipated future economic performance or assumptions and the like that are subject to risks and uncertainties. As such, actual results or outcomes may differ materially from those discussed in the Forward Looking Statements. Important factors which may cause actual results to differ, include but are not limited to, the following: the unanticipated loss of a material client or key personnel, delays or reductions in client budgets, shifts in industry rates of compensation, government compliance costs or litigation, unanticipated natural disasters, changes in the general economic conditions that affect interest rates and/or consumer spending both in the U.S. and the international markets in which the Company operates, unanticipated expenses, client preferences which can be affected by competition, the inability to implement upgrades for certain computer programs which are not Year 2000 compliant and the ability to project risk factors which may vary. 12 13 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: Reference is made to the Index annexed hereto and made a part hereof. (b) Reports on Form 8-K: The Company did not file any reports on Form 8-K during the quarter ended March 31, 2000. 13 14 GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GREY ADVERTISING INC. (REGISTRANT) DATE: May 15, 2000 By:/s/ Steven G. Felsher ----------------------------- Steven G. Felsher Executive Vice President - Finance - Worldwide Secretary and Treasurer (Duly Authorized Officer) DATE: May 15, 2000 By:/s/ Lester M. Feintuck ----------------------------- Lester M. Feintuck Senior Vice President - Chief Financial Officer - US Operations Controller (Chief Accounting Officer) 14 15 INDEX TO EXHIBITS Page Number in Number Assigned to Sequential Numbering Exhibit (i.e. 601 of Table of Item 601 Exhibits System Where Exhibit Regulation S-K) Description of Exhibits May be Found - -------------------- -------------------------- --------------------- 27 Financial Data Schedule 16 15 EX-27 2 FINANCIAL DATA SCHEDULE WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 1000 [LEGEND] THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2000 AND THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2000 OF GREY ADVERTISING INC. AND CONSOLIDATED SUBSIDIARY COMPANIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. [/LEGEND] 3-MOS DEC-31-2000 MAR-31-2000 169,099 6,926 970,067 0 0 1,306,459 296,776 163,550 1,740,959 1,392,340 78,025 10,171 0 1,490 170,075 1,740,959 288,708 288,708 0 0 276,900 0 3,500 12,959 6,911 5,154 0 0 0 5,154 4.11 3.81
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