Slide 1: Management Presentation Fourth Quarter & Full Year 2014 Results
February 23, 2015 Management Presentation Fourth Quarter & Full Year 2014 Results
Slide 2: Forward Looking Statements & Other Information
2 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “ 2015 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: Fourth Quarter 2014 Summary
3 • Strong financial results across all key metrics – industry - leading organic revenue growth, strong EBITDA growth and operating leverage, and healthy overall cash generation • Execution on key growth initiatives (Media & International) increasingly contributing to results • Won material new busi
Slide 4: Full Year 2014 Financial Highlights
4 • Industry - leading organic revenue growth of 10.8% • Revenue increased 15.2% to $1.22 billion from $1.06 billion • Net loss attributable to MDC Partners improved by $124.8 million to ($24.1) million from ($148.9) million • Adjusted EBITDA increased 17.0% to $179.4 million from $153.3 million • A
Slide 5: Fourth Quarter 2014 Financial Highlights
5 • Industry - leading organic revenue growth of 12.5% • Revenue increased 17.5% to $339.9 million from $289.2 million • Net loss attributable to MDC Partners improved by $67.6 million to ($26.8) million from ($94.3) million • Adjusted EBITDA increased 14.6% to $51.8 million from $45.2 million • Adj
Slide 6: Consolidated Revenue and Earnings
6 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2014 2013 2014 2013 Revenue 339.9$ 289.2$ 17.5 % 1,223.5$ 1,062.5$ 15.2 % Operating Expenses Cost of services sold 222.6 187.4 18.8 % 798.5 705.0 13.3 % Office and general expenses 76
Slide 7: Summary of Segment Results - Revenue
7 • Q4 2014 revenue of $339.9 million represents 17.5% YoY growth • Broad strength across all disciplines and geographies SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2014 2013 2014 2013 Revenue Strategic Marketing Services 270
Slide 8: Organic Revenue Growth by Segment
8 ORGANIC REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding • Strategic Marketing Services continues to deliver exceptional organic growth, accelerating to +14.5% growth in the quarter, with +12.2% for the full year • Performance Marketing Services posted solid growth of +5.3% in
Slide 9: Fourth Quarter Revenue by Client Industry
9 Full Year 2014 Mix Year - over - Year Growth by Category • Auto, Communications, and Financials are our fastest growing sectors • Our top 10 clients declined to 23.7% of revenue in Q4 2014 from 26.1% a year ago, demonstrating the ongoing diversification of the business (largest <5%) FOURTH QUARTER
Slide 10: Organic Growth Highlights: Sustained Market Share Gains
10 ORGANIC GROWTH HIGHLIGHTS SUSTAINED MARKET SHARE GAINS Notes: (1) MDC organic growth excludes Accent in all periods. (2) Peers include Omnicom, IPG, WPP, Havas and Publicis . WPP has not yet reported Q4 2014 results and therefore consensus estimates for organic growth rates are used in place of a
Slide 11: Robust New Business Trends
11 ROBUST NEW BUSINESS TRENDS * Includes select wins in the public domain only Recent New Clients* Net New Business Trend^ ^ Excludes discontinued operations +28% Y/Y
Slide 12: Summary of Segment Results - Adjusted EBITDA
12 Note: Actuals may not foot due to rounding • Full year Adjusted EBITDA and margins met expectations, despite incremental new business costs, unfavorable FX impact, and other factors SUMMARY OF SEGMENT RESULTS – ADJUSTED EBITDA (US$ in millions, except percentages) 2014 2013 2014 2013 Adjusted EBI
Slide 13: Adjusted EBITDA Available for General Capital Purposes
13 Note: Actuals may not foot due to rounding ADJUSTED EBITDA AVAILABLE FOR GENERAL CAPITAL PURPOSES (1) Adjusted EBITDA is a non GAAP measure. See schedules 2 through 5 of the Q4 2014 press release for a reconciliation of Net Income (loss) to Adjusted EBITDA. (2) Capital Expenditures, net represent
Slide 14: Available Liquidity
14 AVAILABLE LIQUIDITY (US$ in millions) December 31, 2014 December 31, 2013 Commitment Under Facility $325.0 $225.0 Drawn - - Undrawn Letters of Credit 4.8 4.9 Funds Available Under Facility $320.2 $220.1 Total Cash & Cash Equivalents 119.8 102.0 Liquidity $440.0 $322.1
Slide 15: 2015 Financial Outlook
15 2015 FINANCIAL OUTLOOK Note: See appendix for definitions of non - GAAP measures Revenue Adjusted EBITDA Adjusted EBITDA Available for General Capital Purposes Implied Adjusted EBITDA Margin $1.22 billion $179.4 million $98.8 million 14.7% $1.300 to $1.330 billion $195 to $205 million $109 to $11
Slide 16: Appendix
16 APPENDIX
Slide 17: Temporal Put Obligations and Impact on EBITDA
17 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2015 2.5 0.0 2.5 3.1 2016 3.6 0.0 3.6 0.0 2017 3.9 0.1 4.0 1.4 2018 4.8 0.0 4.8 0.0 Thereafter 4.8 0.0 4.8 1.3 Total $19.6 $0.1 $19.7 $5.8 Effective Multiple 3.4x Estimated Put Impact at
Slide 18: Summary of Cash Flow
18 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2014 2013 Cash flows provided by continuing operating activities $135.8 $56.0 Discontinued operations (1.8) 3.3 Net cash provided by operating activities $133.9 $59.3 Cash
Slide 19: Definition of Non-GAAP Measures
19 Note: Actuals may not foot due to rounding DEFINITION OF NON - GAAP MEASURES Adjusted EBITDA: Adjusted EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjust
Slide 20: MDC Partners contact details
MDC Partners Innovation Centre 745 Fifth Avenue, Floor 19 New York, NY 10151 646 - 429 - 1800 www.mdc - partners.com