-----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, DRyfie50DaIgg9IP/Ff/COnOyEksWb/gJCjgT9Akuhvq3wo+lf/MMkO5sT91XAEC SFebDyGtxd8iZ6DphX8mMQ== 0000950123-04-002697.txt : 20040302 0000950123-04-002697.hdr.sgml : 20040302 20040302143706 ACCESSION NUMBER: 0000950123-04-002697 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040302 ITEM INFORMATION: ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040302 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: 04642343 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 y94807e8vk.txt FORM 8-K 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 March 2, 2004 (Date of earliest event reported) GREY GLOBAL GROUP INC. (Exact name of Registrant as specified in its charter)
Delaware 0-7898 13-0802840 (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 9. REGULATION FD DISCLOSURE; AND ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. The materials attached hereto as Exhibit 99.1 were used in connection with a presentation made at an industry conference on March 2, 2004 and are being furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial Condition". The materials may include Forward Looking Statements (as defined in the Private Securities Litigation Reform Act of 1995). The Forward Looking Statements are subject to risks and uncertainties. Actual results or outcomes may differ materially from those discussed in the Forward Looking Statements. In addition, the materials include information on earnings before interest, taxes, depreciation and amortization ("EBITDA"). A reconciliation of EBITDA to generally accepted accounting principles ("GAAP") is attached hereto as Exhibit 99.2. EXHIBIT 99.1 Presentation materials. 99.2 EBITDA reconciliation (Signature page follows) 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 GLOBAL GROUP INC. By: /s/ Steven G. Felsher ------------------------- Name: Steven G. Felsher Title: Vice Chairman Dated: March 2, 2004 EX-99.1 3 y94807exv99w1.txt PRESENTATION MATERIALS Exhibit 99.1 (GREYGLOBAL GROUP LOGO) March 2004 (GREYGLOBAL GROUP LOGO) Page 1 (GREYGLOBAL GROUP LOGO) (Part of this presentation 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.) (GREYGLOBAL GROUP LOGO) Page 2 Company Profile - - Founded in 1917 as an ad agency in New York - - Today a global full service provider of integrated marketing services - - Fully global - - Approximately 10,500 employees - - 2003 revenue of $1,307.2MM - - Went public in 1965 at a price of $9.75 - now $683 - - Highest priced individual share on NASDAQ - - Conservative financial management - - Substantial employee ownership (GREYGLOBAL GROUP LOGO) Page 3 What Makes Grey Different - - SINGULARITY OF PURPOSE: Solely dedicated to increasing value of client brands. - - SIMPLICITY OF STRUCTURE: One - and only one - global company in each communications discipline. (GREYGLOBAL GROUP LOGO) Page 4 Key Global Clients
Client No. of Brands No. of No. of Grey Client Since Handled Countries Marketing Disciplines ------ ----- ------- --------- --------------------- (P&G LOGO) 1956 61 83 8 (GLAXOSMITHKLINE LOGO) 1955 80 83 7 (MARS INC. LOGO) 1985 27 50 6 (NOKIA LOGO) 1986 3 27 7 (ORACLE LOGO) 1999 6 11 5 (BRITISH AMERICAN TOBACCO LOGO) 1963 25 42 3 (DIAGEO LOGO) 1979 12 10 6 (WYETH LOGO) 1955 27 24 6 (TIME WARNER LOGO) 1977 8 3 4 (3M LOGO) 1984 21 13 6
Our Clients: 1/5 of the Fortune 500 (3M LOGO) (BRITISH AMERICAN TOBACCO LOGO) (VOLKSWAGEN LOGO) (HESS LOGO) (DIAGEO LOGO) (WYETH LOGO) (P&G LOGO) (DELL LOGO) (CANON LOGO) (AETNA LOGO) (ORACLE LOGO) (BELGACOM LOGO) (INTEL LOGO) (KMART LOGO) (MARS INC. LOGO) (NOKIA LOGO) (DEUTSCHE TELEKOM LOGO) (NORDEA LOGO) (JPMORGANCHASE LOGO) (CON AGRA LOGO) (TIME WARNER LOGO) (GLAXOSMITHKLINE LOGO) (BELLSOUTH LOGO) (HASBRO LOGO) (CENDANT LOGO) (DARDEN RESTAURANTS LOGO) (SARALEE LOGO) (MERCK LOGO) Source: Fortune Magazine (GREYGLOBAL GROUP LOGO) Page 6 (PANTENE LOGO) (P&G LOGO) (CANON LOGO) (CAPTAIN MORGAN LOGO) (DIAGEO LOGO) REAL Global Network (MAP) Americas Argentina Brazil Canada Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Peru Trinidad & Tobago United States Uruguay Venezuela Europe, Middle East & Africa Austria Belarus Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Egypt Estonia Finland France Germany Ghana Greece Hungary Ireland Israel Italy Kazakhstan Kenya Latvia Lebanon Luxembourg Lithuania Macedonia Moldova Netherlands Nigeria Norway Poland Portugal Romania Russia Saudi Arabia Serbia/Montenegro Slovak Republic Slovenia South Africa Spain Sweden Switzerland Turkey Ukraine United Arab Emirates United Kingdom Uzbekistan Zimbabwe Asia Pacific Australia Bangladesh China/Hong Kong India Indonesia Japan Malaysia New Zealand Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam (GREYGLOBAL GROUP LOGO) Page 10 Simplicity of Structure (FLOW CHART) (GREYGLOBAL GROUP LOGO) | | - -------------------------------------------------------------------------------- | | | | | | | | | | | | | | Grey Grey Grey Grey G2 GCI Worldwide MediaCom Healthcare Direct Interactive Worldwide Group Group Simple Structure (FLOW CHART) (GREYGLOBAL GROUP LOGO) U.S. Specialized - -------------------------------------------------------------------------------- | | | | | | | | | | WING Alliance G WHIZ Grey Insight J. Brown Latino Partners Agency Group Well Positioned Geographically & by Client Business PERCENTAGE OF REVENUE BY GEOGRAPHY --------------------- Full Year 12/31/2003 (PIE CHART) North America 45% Europe 44% Asia/Latin America 11% REVENUE DISTRIBUTION BY KEY CLIENT BUSINESS * --------------------- (PIE CHART) Consumer-34% Healthcare-24% Food-19% Telecom & IT-13% Entertainment-5% Auto-3% Other-2% OUR KEY CLIENTS - Balanced, Market Leaders - Growing with existing clients - in terms of products, markets, disciplines and revenues * Based on current year forecast revenues of top 30 clients Strong, Vital Operating Management (FLOW CHART) (GREYGLOBAL GROUP LOGO) Ed Meyer, Steve Felsher, Bob Berenson, Steve Novick 50+years - ------------------------------------------------------------------------------------------------------------------- | | | | | | | | | | | | | | GREY GREY GREY GREY G2 GCI WORLDWIDE MEDIACOM HEALTHCARE DIRECT INTERACTIVE WORLDWIDE GROUP GROUP Steve Blamer, Alexander Lynn Larry Norman Lehoullier Joe Celia Robert Feldman Carolyn Carter, Schmidt-Vogel O'Connor Vos Kimmel Orin Wechsberg 44 years 47 years Eduardo Arrocha Dene Callas 48 years 47 years 50 years 49 years Jon Mandel 48 years
Financials (GREYGLOBAL GROUP LOGO) Page #15 1996-2003 Revenues 7.0% CAGR* (BAR CHART)
$MM 1996 $ 765.50 1998 $ 935.18 2000 $1,247.45 2002 $1,199.71 2003 $1,307.27
FYE 12/31 *Compound Annual Growth Rate (GREYGLOBAL GROUP LOGO) Page 16 2003 Revenues Consolidated Revenues (BAR CHART) +9.0% $MM 2002 1199.71 2003 1307.27
North American Revenues (BAR CHART) +5.5% $MM 2002 555.24 2003 585.67
International Revenues (BAR CHART) +12.0% $MM 2002 644.47 2003 721.60
2003 Pre-Tax Profit Consolidated Pre-Tax Profit (BAR CHART) +53.9% $MM 2002 42.97 2003 66.13
North American Pre-Tax Profit (BAR CHART) +56.8% $MM 2002 27.85 2003 43.67
International Pre-Tax Profit (BAR CHART) +48.5% $MM 2002 15.12 2003 22.46
2003 Financial Data Net Income (BAR CHART) +59.3% $MM 2002 18.25 2003 29.08
EBITDA* (BAR CHART) +29.3% $MM 2002 96.90 2003 125.30
Earnings Per Share (BAR CHART) +63.8% $MM 2002 13.28 2003 21.76
Stockholders' Equity (BAR CHART) +36.3% $MM 2002 177.51 2003 242.00
*A reconciliation of EBITDA to net income can be found in our most recent report to the SEC on Form 8-K How We Feel Today - - Renewed optimism - - Year of recovery, especially in US. More cautious in Europe. High growth expected in Asia. - - Media Fragmentation: marketing spending spreading across wider range of communication as we chase more mobile and restless consumers. - - Continued consolidation of global clients. (GREYGLOBAL GROUP LOGO) Page 20 Grey's Core Commitments - - A global, full service provider of integrated marketing services - - Singularity of purpose: client focused - - Simplicity of structure - - Fundamental growth - - Conservative fiscal management (GREYGLOBAL GROUP LOGO) Page 21 (GREYGLOBAL GROUP LOGO) Page 22 EX-99.2 4 y94807exv99w2.txt EBITDA RECONCILIATION EXHIBIT 99.2 For the years ended December 31, 2003 and December 31, 2002, EBITDA was approximately $125.3 million and $96.9 million, respectively. The Company believes that EBITDA is a useful measure for investors to consider, in conjunction with net income and other GAAP measures, in evaluating the Company, because it is a commonly used tool by the Company, investors and others in evaluating operating performance. EBITDA should be examined in conjunction with net income. EBITDA is not a measure determined in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company's performance, or an alternative to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity. EBITDA is not indicative of funds available to fund the Company's cash needs or available for distribution to shareholders. It should be noted that the Company's manner of calculating EBITDA may differ from the calculations of similarly-titled measures by other companies. The table below sets forth a reconciliation of net income to EBITDA.
Year ended Year ended December 31, December 31, ------------ ------------ (in thousands) 2003 2002 - -------------- ------------- ------------ Net income .................. $ 29,076 $ 18,255 Interest expense ............ 16,814 15,735 Taxes ....................... 34,990 21,529 Depreciation and amortization 44,438 41,430 EBITDA ...................... 125,318 96,949 ======== ========
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