-----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, EGCh9u8NAjEtqIprO+POD2+1rKWLPDW+D56XBd2UdDaMikiDOC6ZKli2A8wrtPTm qDJC1kF/FYn/Cew/2JwFrw== 0000950123-03-005813.txt : 20030513 0000950123-03-005813.hdr.sgml : 20030513 20030513173226 ACCESSION NUMBER: 0000950123-03-005813 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020513 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREY GLOBAL GROUP INC 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07898 FILM NUMBER: 03696485 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 FORMER COMPANY: FORMER CONFORMED NAME: GREY ADVERTISING INC /DE/ DATE OF NAME CHANGE: 19920703 8-K 1 y86646e8vk.txt GREY GLOBAL GROUP INC SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 May 13, 2003 (Date of earliest event reported) GREY GLOBAL GROUP INC. (Exact name of Registrant as specified in its charter) Delaware 0-7898 3-0802340 (State of (Commission File No.) (IRS Employer Incorporation) Identification No.) 777 Third Avenue, New York, New York 10017 (Address of principal executive offices, including zip code) (212) 546-2000 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS. On May 13, 2003, Grey Global Group Inc. issued a press release announcing its operating results for the quarter ending March 31, 2003. A copy of the release is attached hereto as Exhibit 99.1 and is incorporated by reference herein. ITEM 7. EXHIBITS. 99.1 Press Release of Grey Global Group Inc. dated May 13, 2003 ITEM 9. REGULATION FD DISCLOSURE. Exhibit 99.1 attached hereto is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial Conditions." 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 GLOBAL GROUP INC. By: /s/ Steven G. Felsher, Vice Chairman EX-99.1 3 y86646exv99w1.txt PRESS RELEASE Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Jan A. Sneed (212) 546-2422 Steven G. Felsher (212) 546-2440 GREY GLOBAL GROUP REPORTS FIRST QUARTER RESULTS New York, New York - May 13, 2003--Grey Global Group Inc. (NASDAQ: GREY) today reported its results for the first quarter of 2003. Results - ------- The Company reported commissions and fees ("revenues") of $297.6 million in the first quarter of 2003, a 4.2% increase, when compared to the same quarter in 2002. Revenues were favorably impacted by the strengthening of European currencies coupled with modest growth in North America. Income of consolidated companies before taxes on income grew 6.7% for the quarter to $11.1 million. The increase is due, principally, to the Company's continued attention to managing operating costs along with the increase in revenues. Net income was $5.1 million for the quarter as compared to $4.3 million for the same period in the prior year. For the three months ended March 31, 2003, basic and diluted earnings per common share were $3.41 and $3.12, respectively, as compared to $3.21 and $2.92, respectively, for basic and diluted earnings in the corresponding period in 2002. Company Comment - --------------- The Company's revenues for the first quarter increased despite a generally weak global economy, SARS and the uncertainties of the Iraqi situation. Revenue comparisons with last year were helped by the strengthening of the European currencies against the dollar, offset somewhat by the decline of Latin America currencies since the first quarter of 2002. Grey Global Group companies continued to win business around the world including, most importantly, new assignments from our major clients. We extended our franchise with clients such as Procter & Gamble, Mars, GlaxoSmithKline, 3M, British American Tobacco, Wyeth and others. This success is attributed to our totally focused, unrelenting commitment to serving our clients' requirements. Two of our new business wins demonstrate clearly the strengths of Grey. One is the assignment of Nokia-N-Gage, the worldwide entry of Nokia into mobile videogame platforms and software. This win required us to establish to the client our ability to execute outstanding creative collaboratively and simultaneously throughout the world. GREY/First Quarter Results - 2003 Page Two We also won responsibility for marketing the Visa credit card in Central and Eastern Europe, the Middle East and Africa. The assignment of this significant brand requires us to provide advertising, branding, sales promotion and other marketing services in both developed and underdeveloped markets. This showcases the coverage, vibrancy, quality and close synchronization of our truly global network of businesses. These wins, against top flight competitors, confirm the power of our network and the strength of our business model. * * * * * Grey Global Group ranks among the largest global marketing 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, 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
For the Three Months Ended March 31 (Note 1) ---------------------------- (in thousands, except share and per share data) 2003 2002 - ----------------------------------------------------------------------------------------------------------- Commissions and fees $ 297,643 $ 285,581 Income of consolidated companies before taxes on income 11,093 10,393 Provision for taxes on income 5,214 4,681 Minority interest applicable to consolidated companies (997) (1,847) Equity in earnings of nonconsolidated affiliated companies 189 449 ------------------------------- Net income $ 5,071 $ 4,314 =============================== Weighted average number of common shares outstanding - Basic 1,262,132 1,247,801 =============================== - Diluted 1,389,996 1,381,557 =============================== Earnings per common share (Note 2) - Basic $ 3.41 $ 3.21 =============================== - Diluted $ 3.12 $ 2.92 ===============================
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. # # # -----END PRIVACY-ENHANCED MESSAGE-----