Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q1 2006 Earnings Presentation
15 slides from Stagwell's earnings presentation, May 8, 2006
Slide 1: Management Presentation - First Quarter 2006 Results
Management Presentation May 4, 2006 First Quarter 2006 Results MDC(M)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information This presentation contain: forward looking statements The Companys reprezentatives may alco make forward-looking statement: orally ftom time to time. Statements in this presentation that ae not historical fact, including -ttements about
Slide 3: Summary of Consolidated Results
MDC(K)PARTNERS Summary of Consol @38:mmtoa) Three Months Ended March 31, 06 2005 _% Change Revenue Services S981 S$ 737 331 Products 18.6 172 81 116.6 909 283 Operating Expenses Cost of services sold 59.7 472 266 Cost of products sold us 109 88 Office and general expenses 35.8 293 224 Depreciation a
Slide 4: Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (055 a mitins) Three Months Ended March 31, 2006 2005 % Change Revenue Strategic Marketing Services S604 $ 397 522 Customer Relationship Management 189 163 157 Specialized Communications Services 18.8 177 61 ‘Marketing Communications 981 BT 331 Sec
Slide 5: First Quarter 2006 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS First Quarter 2006 Marketing Communications Revenue Growth by Segment Organic Growth Strategic Customer Specialized Weighted ‘Marketing Relationship Communication Average Services Management Services Total Acquisition Growth 29.6% - 2.2% 16.4% Foreign Exchange Growth 0.7% - 2.1% 0.9%
Slide 6: Group Results — Total EBITDA
a MDC(K)PARTNERS Summary of Group Results — Total EBITDA fetid ‘Three Months Ended Mareh 1, 2006 2008 _¥6 Change EBITDA Strategic Marketing Services $ 19 $ 64 86.8 Cstrner Retatnatag Manaaetient 1s a9 737 Seecithzrd Conmmmuetion Secrce 36 Ls 98.7 Haeristns Commnsiestions Grose Tt 31 ars pe 175% 124%
Slide 7: Segment Results — MDC's Share of EBITDA
° MDC(K)PARTNERS Summary of Segment Results —- MDC’s Share of EBITDA (55 im asions) ‘Three Months Ended March 31, 2006 005 _% Change ‘MDC EBITDA Strategic Marketing Services s $42 87.6 ‘Customer Relationship Management 09 70.7 Specialized Communications Service i 148.2 ‘Marketing Communications Grou
Slide 8: Cash EPS Reconciliation
Cash EPS Reconciliation (USS and per share amounts in millions) Three Months Ended March 31, 2006 2008 Net Loss from Continuing Operations 51) oo) Depreciation & Amortization 83 aq Stock Based Compensation 35 1.0 Cash Eamings 367 32.0 Diluted Shares 238 22 [cash EPS 30.28 $0.09) MDC(K)PARTNERS
Slide 9: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow (USS in millions) ‘Three Months Ended March 31, 2006 2005 MDC EBITDA $8.0 su7 Cash Distributions to MDC from Unconsolidated Affliates, 05 05 Capital Expenditures 68) @2) Cash Taxes 4) (03) Cash Interest 1.4) 0.8) ECE $0.9 12)
Slide 10: Liquidity Profile
© Liquidity Profile MDC(K)PARTNERS Available Liquidity at March 31, 2006 (5s imastons) ‘Commitment Under Credit Facility $100.0 Borrowings Under Credit Facility 688 Letters of Credit 45 Funds Available Under Credit Facility $267 Available Cash 38 Liquidity $305
Slide 11: Appendix
Appendix MDC(X)PARTNERS
Slide 12: Potential Contractual Put Obligations and Estimated Impact on EBITDA
1 Potential Contractual Put Obligations and Estimated Impact on EBITDA MDC(K)PARTNERS Estimated Put Impact at March 31, 2006 (USS in thousands) Cash Stock EBITDA 2006 $7,555 $206 $3,045 2007 7,225 1,206 3,244 2008 28,087 7,043 8,022 2009 30.488 8.161 3,865 2010 10,183 3,157 330 Thereafter 2,743 1,77
Slide 13: Segments — Marketing Communications
12 MDC(K)PARTNERS Summary of Segments — Marketing Communications Strategic Marketing Services Allard Johnson ACLO Colle & McVoy Crispin Porter Bogusky Fletcher Martin Kirshenbaum Bond + Partners Margeotes Fertitta Powell Vitro Robertson Zyman Group Customer Relationship Management Accent ‘Specialize
Slide 14: Segments — Secure Products International
13 MDC(K)PARTNERS Summary of Segments — Secure Products International Secure Secure Paper Card Business Business Ashton Potter Metaca Graphics Mercury Graphics Placard
Slide 15: Definition of Non-GAAP Metrics
14 MDC(K)PARTNERS Definition of Non-GAAP Metrics - EBITDA: EBITDA is a non-GAAP measure, that represents operating income (loss) plus depreciation and amortization plus stock-based compensation. A reconciliation of “EBITDA” to the US GAAP reported results of operations has been provided by the Compa