Slide 1: Management Presentation: Third Quarter 2012 Results
Management Presentation November 5 , 2012 Third Quarter 2012 Results
Slide 2: Forward-looking statements
This presentation, including our “ 2012 Financial Outlook”, contains forward - looking statements . The Company’s representatives may also make forward - looking statements orally from time to time . Statements in this presentation that are not historical facts, including statements about the Compan
Slide 3: Key Highlights
KEY HIGHLIGHTS • Organic revenue growth of 6.7% for Q3 2012 and 7.2% YTD • Q3 2012 revenue increased 13.6% • YTD revenue increased 13.2% • Q3 2012 EBITDA increased 94.7% • YTD EBITDA increased 10.0% • EBITDA margin expanded 530 basis points year over year to 12.6% in Q3 2012 • Net new business wins
Slide 4: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2012 2011 2012 2011 Revenue 267.8$ 235.7$ 13.6 % 777.3$ 686.3$ 13.2 % Operating Expenses Cost of services sold 180.9 173.5 4.2 % 546.1 489.2 11.6 % Office and general expenses 73.2 55.4
Slide 5: Summary of Segment Results - Revenue
SUMMARY OF SEGMENT RESULTS - REVENUE • Strategic Marketing Services delivered 12.5% organic growth, an acceleration of 180 basis points from 2Q 2012 • Strong new business wins year to date adds visibility to future revenue growth (US$ in millions, except percentages) 2012 2011 2012 2011 Revenue Stra
Slide 6: Third Quarter 2012 Revenue Growth by Segment
THIRD QUARTER 2012 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 12.5% -2.9% 6.7% Acquisition Growth 8.7% 5.0% 7.3% Foreign Exchange Growth -0.3% -0.4% -0.4% Total 20.9% 1.7% 13.6%
Slide 7: Year to Date 2012 Revenue Growth by Segment
YEAR TO DATE 2012 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 10.7% 1.1% 7.2% Acquisition Growth 7.5% 4.9% 6.6% Foreign Exchange Growth -0.6% -0.7% -0.6% Total 17.6% 5.3% 13.2%
Slide 8: Third Quarter Revenue by Client Sector
THIRD QUARTER REVENUE BY CLIENT SECTOR Note: Actuals may not foot due to rounding Q3 2012 Q3 2011 Consumer Products, 32% Retail, 17% Communications, 12% Other, 12% Financials, 8% Technology, 8% Healthcare, 5% Auto, 6% Consumer Products, 32% Retail, 15% Communications, 13% Other, 12% Financials, 9% T
Slide 9: Outperformance Despite More Difficult Comparisons
Outperformance Despite More Difficult Comparisons Note: *Peers include Omnicom, Publicis , Interpublic, WPP, and Havas *Due to timing of earnings, Havas is not included 3 Q12 ORGANIC GROWTH 3 Q12 +6.7% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% MDC Partners vs. Peers Trailing 12 Month Organic Re
Slide 10: Summary of Segment Results - EBITDA
SUMMARY OF SEGMENT RESULTS - EBITDA Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2012 2011 2012 2011 EBITDA Strategic Marketing Services 29.9$ 10.3$ 191.4 % 69.1$ 55.0$ 25.7 % margin 16.9% 7.0% 13.3% 12.4% Performance Marketing Services 8.9 11.8 (24.2) % 19.6 25.1
Slide 11: Free Cash Flow
FREE CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2012 2011 2012 2011 EBITDA $33.7 $17.3 $73.4 $66.7 Net Income Attibutable to Noncontrolling Interests (1.1) (2.1) (4.4) (6.5) Capital Expenditures (4.7) (9.1) (13.7) (16.2) Cash Taxes (0.6) (0.0) (0.9) (0.2) Cash Interest, n
Slide 12: Liquidity
LIQUIDITY (US$ in millions) Commitment Under Facility 150.0$ Drawn 124.5 Letters of Credit 5.0 Total Cash 72.8 Available Liquidity at September 30, 2012
Slide 13: 2012 Financial Outlook
2012 FINANCIAL OUTLOOK Implied 2012 Year over Year Guidance Change Revenue $1,050 - $1,075 million +11.3% to +14.0% EBITDA $110 - $115 million +21.2% to +26.7% Free Cash Flow $35 - $40 million +50.8% to +72.3% + Change in Working Capital and Other +$25 million Total Free Cash Flow $60 - $65 million
Slide 14: Appendix
APPENDIX
Slide 15: Temporal Put Obligations and Impact on EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Note: Excludes put rights of $82.5 million exercisable pursuant to termination of employment or death. Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2012 1.6 0.4 2.0 1.4 2013 1.8 0.5 2.3 0.3 2014 2.6 0.9 3.5 0.6 2015 3.3 0.5 3.8 1.2 The
Slide 16: Summary of Cash Flow
SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2012 2011 Cash flows provided by (used in) continuing operating activities $18.1 ($3.8) Discontinued operations (2.3) (2.4) Net cash provided by (used in) operating activies $15.8 ($6.2) Cash flows provided by (used in
Slide 17: Definition of Non-GAAP Measures
DEFINITION OF NON - GAAP MEASURES • EBITDA: EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjustments and profit distributions from affiliates . • Organic Gro