Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q4 2013 Earnings Presentation
19 slides from Stagwell's earnings presentation, Feb 20, 2014
Slide 1: Management Presentation Fourth Quarter 2013 Results
February 20, 2014 Management Presentation Fourth Quarter 2013 Results
Slide 2: Forward Looking Statements & Other Information
2 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “ 2014 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 histor
Slide 3: Summary
3 • Another year of exceptionally strong operational and financial performance for our business • Exceptional financial performance across all key metrics – industry - leading organic revenue growth, strong EBITDA growth and operating leverage, and solid free cash flow growth • New business wins and
Slide 4: Financial Highlights
4 SUPERIOR FINANCIAL PERFORMANCE ACROSS ALL KEY METRICS – INDUSTRY LEADING ORGANIC REVENUE GROWTH, STRONG EBITDA GROWTH AND OPERATING LEVERAGE, AND SOLID FREE CASH FLOW GROWTH • O rganic revenue growth of 8.3 %, outpacing the industry by 3 times • Revenue increased from $1.06 billion to $1.15 billio
Slide 5: Strong 2013 Results Across All Key Metrics
5 STRONG 2013 RESULTS ACROSS ALL KEY METRICS Note: See appendix for definitions of non - GAAP measures 2012 2013 2013 Actual Results Recent Guidance Actual Results Revenue $1.06 billion $1.155 - $1.180 billion $1.15 billion Year-over-Year Growth +8.4% to +10.8% +8.1% EBITDA $119.7 million $158 - $16
Slide 6: Consolidated Revenue and Earnings
6 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2013 2012 2013 2012 Revenue 307.1$ 292.6$ 4.9 % 1,148.9$ 1,063.3$ 8.1 % Operating Expenses Cost of services sold 197.8 194.3 1.8 % 754.5 733.8 2.8 % Office and general expenses 169.7
Slide 7: Summary of Segment Results - Revenue
7 • 2013 revenue of $1.15 billion represents 8.1% YoY growth, nearly all organic SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2013 2012 2013 2012 Revenue Strategic Marketing Services 217.9$ 200.2$ 8.9 % 805.4$ 719.4$ 12.0 % Per
Slide 8: Organic Revenue Growth by Segment
8 Note: Actuals may not foot due to rounding ORGANIC REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding • Strategic Marketing Services continues to deliver exceptional organic growth, increasing 9.3% in the quarter (2013 +12.7%) on a 17.2% comp from last year • Performance Marketin
Slide 9: Fourth Quarter Revenue by Client Industry
9 Q4 2013 Mix Year - over - Year Growth by Category • Technology, Healthcare and Auto are our fastest growing industry sectors, more than offsetting declines in certain other categories • Our business continues to strengthen in diversification across sectors as more clients turn to us to deliver tra
Slide 10: Organic Growth Highlights Sustained Market Share Gains
10 ORGANIC GROWTH HIGHLIGHTS SUSTAINED MARKET SHARE GAINS -10% -5% 0% 5% 10% 15% 20% 25% MDC Partners vs. Peers Trailing 12 Month Organic Revenue MDC Partners Peers Notes: Peers include Omnicom, IPG Havas and Publicis . WPP has not yet reported 4Q13 results and therefore is not included in the peer
Slide 11: Summary of Segment Results - EBITDA
11 Note: Actuals may not foot due to rounding • We remain focused on sustainable profitable growth by optimizing the conversion of incremental revenues to EBITDA and Free Cash Flow SUMMARY OF SEGMENT RESULTS - EBITDA (US$ in millions, except percentages) 2013 2012 2013 2012 EBITDA Strategic Marketin
Slide 12: Free Cash Flow
12 Note: Actuals may not foot due to rounding FREE CASH FLOW (US$ in millions) 2013 2012 2013 2012 Cash Flow Provided by Continuing Operating Activities ($51.1) $61.6 $62.1 $80.9 Cash Settlement of Stock Appreciation Rights 78.0 0.0 78.0 0.0 Adjusted Cash Flow Provided by Continuing Operating Activi
Slide 13: Available Liquidity
13 AVAILABLE LIQUIDITY (US$ in millions) December 31, 2013 December 31, 2012 Commitment Under Facility $225.0 $150.0 Drawn - - Undrawn Letters of Credit 4.9 4.8 Funds Available Under Facility $220.1 $145.2 Total Cash & Cash Equivalents 102.0 60.3 Liquidity $322.1 $205.5
Slide 14: 2014 Financial Outlook
14 • We look for continued revenue strength in 2014, along with continued operational excellence and resulting margin and cash flow increases 2014 FINANCIAL OUTLOOK Implied 2013 2014 Year over Year Actuals Guidance Change Revenue $1.15 billion $1.230 - $1.255 billion +7.1% to +9.2% EBITDA $159.4 mil
Slide 15: Appendix
15 APPENDIX
Slide 16: Temporal Put Obligations and Impact on EBITDA
16 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2014 2.7 0.4 3.1 1.8 2015 4.2 0.4 4.6 1.9 2016 3.7 0.5 4.2 0.1 2017 3.9 0.0 3.9 0.9 Thereafter 2.0 0.0 2.0 0.0 Total $16.5 $1.3 $17.8 $4.7 Effective Multiple 3.8x Estimated Put Impact at
Slide 17: Summary of Cash Flow
17 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2013 2012 Cash flows provided by continuing operating activities $62.1 $80.9 Discontinued operations (2.8) (4.6) Net cash provided by operating activities $59.3 $76.3 Cash
Slide 18: Definition of Non-GAAP Measures
18 Note: Actuals may not foot due to rounding 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, one time in
Slide 19: MDC Partners contact details
MDC Partners Innovation Centre 745 Fifth Avenue, Floor 19 New York, NY 10151 646 - 429 - 1800 www.mdc - partners.com