Slide 1: Management Presentation Fourth Quarter & Full Year 2019 Results
Management Presentation Fourth Quarter & Full Year 2019 Results February 27, 2020
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation contains forward-looking statements. Statements in this presentation that are not historical facts, including without limitation statements about the Company’s beliefs and expectations, earnings guidance, recent business and economic t
Slide 3: Fourth Quarter 2019 Financial Highlights
-----FOURTH DRAFTQUARTER ----- 2019 FINANCIAL HIGHLIGHTS • Revenue of $382.0 million versus $393.7 million in the prior year period • Organic revenue declined by 1.5% versus the prior year period, including a 279 basis point benefit from billable pass through costs • Specialist Communications contin
Slide 4: Twelve Months 2019 Financial Highlights
-----TWELVE DRAFTMONTHS ----- 2019 FINANCIAL HIGHLIGHTS • Revenue of $1.42 billion versus $1.48 billion for the prior year period • Organic revenue declined by 3.1% versus the prior year period, including a 206 basis point benefit from billable pass through costs • Net loss attributable to MDC Partn
Slide 5: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 % Change 2019 2018 % Change Revenue: $ 382.0 $ 393.7 (3.0) % $ 1,415.8 $ 1,476.2 (4.1) % Operating Expenses: Cost of services sold 260.7 256.1 1.8 % 961.
Slide 6: Revenue Summary
REVENUE SUMMARY (US$ in millions, except percentages) Three Months Ended Twelve Months Ended Revenue $ % Change Revenue $ % Change December 31, 2018 $ 393.7 $ 1,476.2 Non-GAAP Organic revenue growth (decline) (5.9) (1.5)% (46.1) (3.1)% Non-GAAP acquisitions (dispositions), net (4.8) (1.2)% (1.6) (0.
Slide 7: Revenue by Geography and Segment
REVENUE BY GEOGRAPHY AND SEGMENT (US$ in millions, except percentages) Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 Total Total Organic Revenue Total Total Organic Revenue Revenue Growth Growth (Decline) Revenue Growth Growth (Decline) United States $ 296.7 (2.7)% (2.6)
Slide 8: Revenue by Client Industry
REVENUE BY CLIENT INDUSTRY Q4 2019 Mix Year-over-Year Growth by Category Q4 2019 QTD Q4 2019 YTD Above 10% Financials Technology Retail, Consumer Products, Consumer Products, Automotive, Technology, Communications, Financials, 0% to 10% Healthcare Transportation and Travel/Lodging Food and Beverage,
Slide 9: Adjusted EBITDA
ADJUSTED EBITDA (1) (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 % Change 2019 2018 % Change Advertising and Communications Group $ 67.2 $ 60.4 11.3 % $ 204.8 $ 201.3 1.7 % Global Integrated Agencies 38.8 31.3 24.0 % 104.9 90.4 16.0
Slide 10: Covenant EBITDA 2019
COVENANT EBITDA Covenant 2019 EBITDA (LTM) (1) (US$ in millions) Q1 Q2 Q3 Q4 Q4-2019 - LTM Net income (loss) attributable to MDC Partners Inc. common shareholders $ (2.5) $ 0.8 $ (5.1) $ (10.5) $ (17.3) Adjustments to reconcile to operating income (loss): Accretion on and net income allocated to con
Slide 11: Covenant EBITDA 2018
COVENANT EBITDA Covenant EBITDA 2018 (LTM) (1) (US$ in millions) Q1 Q2 Q3 Q4 Q4-2018 - LTM Net income (loss) attributable to MDC Partners Inc. common shareholders $ (31.4) $ 1.1 $ (18.2) $ (83.7) $ (132.3) Adjustments to reconcile to operating income (loss): Accretion on and net income allocated to
Slide 12: Summary of Cash Flow
SUMMARY OF CASH FLOW (US$ in millions) Twelve Months Ended December 31, 2019 2018 Net cash provided by operating activities $ 86.5 $ 17.3 Net cash provided by (used in) investing activities 0.1 (50.4) Net cash provided by (used in) financing activities (11.7) 21.4 Effect of exchange rate changes on
Slide 13: 2020 Financial Outlook
2020 FINANCIAL OUTLOOK 2020 Outlook Commentary* Organic Revenue Growth We expect approximately 2 to 4% growth in organic revenue. Foreign Exchange Impact, net No estimated impact at this time. Impact of Non-GAAP Acquisitions Our current expectations are that the impact of acquisitions, net of dispos
Slide 14: Appendix
APPENDIX 14
Slide 15: Historical Revenue Schedule
HISTORICAL REVENUE SCHEDULE (US$ in thousands, except percentages) 2017 (ASC 605) 2018 (ASC 606) 2019 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Revenue United States $ 274,682 $ 304,463 $ 289,701 $ 303,517 $ 1,172,364 $ 256,524 $ 295,268 $ 296,544 $ 304,855 $ 1,153,191 $ 263,017 $ 284,659 $ 271,
Slide 16: Historical Adjusted EBITDA Schedule
HISTORICAL ADJUSTED EBITDA SCHEDULE (US$ in thousands, except percentages) 2017 (ASC 605) 2018 (ASC 606) 2019 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD ADVERTISING AND COMMUNICATIONS GROUP Revenue $344,700 $390,532 $375,800 $402,747 $1,513,779 $326,968 $379,743 $375,830 $393,662 $1,476,203 $328,
Slide 17: Reconciliations
RECONCILIATIONS 2018 2019 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD NON-GAAP ACQUISITIONS (DISPOSITIONS), NET GAAP revenue from current year acquisitions $ — $ 11,066 $ 12,734 $ 12,317 $ 36,117 $ — $ 698 $ 1,347 $ 1,396 $ 3,441 GAAP revenue from prior year acquisitions (1) — — — — — 15,685 1,519 1,109 291 18,6
Slide 18: Available Liquidity
AVAILABLE LIQUIDITY(1) (US$ in millions) December 31, 2019 December 31, 2018 Commitment Under Facility $ 250.0 $ 325.0 Drawn — 68.1 Undrawn Letters of Credit 4.8 4.7 Undrawn Commitments Under Facility $ 245.2 $ 252.2 Total Cash & Cash Equivalents 106.9 30.9 Liquidity $ 352.1 $ 283.0 (1) Subject to a
Slide 19: Current Credit Picture
CURRENT CREDIT PICTURE $250 million Credit Facility Covenants (1) Current Debt Maturity Profile (5) (US$ in millions) December 31, 2019 Covenants I. Total Senior Leverage Ratio (0.37) Maximum per covenant 2.00 II. Total Leverage Ratio 4.52 Maximum per covenant 6.25 III. Fixed Charges Ratio 2.55 Mini
Slide 20: Definition of Non-GAAP Measures
DEFINITION OF NON-GAAP MEASURES In addition to its reported results, MDC Partners has included in its press release and supplemental management presentation certain financial results that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such n
Slide 21: MDC Partners contact details
MDC Partners 330 Hudson Street, 10th Floor New York, NY 10013 646-429-1800 www.mdc-partners.com