Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q2 2013 Earnings Presentation
19 slides from Stagwell's earnings presentation, Jul 25, 2013
Slide 1: Management Presentation Second Quarter Results
July 25, 2013 Management Presentation Second Quarter Results
Slide 2: Forward-looking statements
2 This presentation, including our “ 2013 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 Comp
Slide 3: Summary
3 • Delivering record growth with significant margin improvement • Winning incremental share of the client’s wallet and increasing market share; robust pipeline provides visibility for future performance • Generating significant free cash flow; increasing quarterly dividend • Improving the balance s
Slide 4: Key Financial Highlights
4 2013 financial guidance increased due to strong financial results and improved margin expansion • Organic revenue growth of 5.7% for Q2 2013 • Q2 2013 r evenue increased from $273.5 million to $288.1 million, an increase of 5.3% • Q2 2013 EBITDA increased from $32.3 million to $43.4 million, an in
Slide 5: Consolidated Revenue and Earnings
5 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2013 2012 2013 2012 Revenue 288.1$ 273.5$ 5.3 % 555.2$ 508.7$ 9.1 % Operating Expenses Cost of services sold 190.7 187.6 1.6 % 369.7 363.7 1.7 % Office and general expenses 61.4 74.0
Slide 6: Summary of Segment Results - Revenue
6 • Strategic Marketing Services continues to deliver exceptional organic growth, increasing 9.5% in the quarter • Strong new business wins over the last several quarters enhances visibility on financial performance SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due to rounding (US$
Slide 7: Second Quarter 2013 Revenue Growth by Segment
7 Note: Actuals may not foot due to rounding SECOND QUARTER 2013 REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 9.5% -2.2% 5.7% Foreign Exchange Growth -0.2% -0.6% -0.4% Total 9.3%
Slide 8: Year to Date 2013 Revenue Growth by Segment
8 Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2013 2012 Revenue 267.0$ 235.2$ 13.6 % Operating Expenses Cost of services sold 179.0 176.0 1.7 % Office and general expenses 68.0 59.9 13.6 % Depreciation and amortization 9.6 10.0 (3.7) % Operating profit (loss) 10.
Slide 9: Second Quarter Revenue by Client Sector
9 Consumer Products 29% Retail 17% Communications 11% Other 12% Financials 8% Technology 11% Healthcare 5% Auto 7% Consumer Products 34% Retail 17% Communications 12% Other 10% Financials 7% Technology 7% Healthcare 5% Auto 8% Q2 2013 Q2 2012 • Technology and Financial Services were our Fastest Grow
Slide 10: MDC Partners vs. Peers Organic Growth
10 MDC TODAY ORGANIC GROWTH Sustained Market Share Gains Continue Note: *Peers include Omnicom, Interpublic, WPP Group , Havas and Publicis . Due to timing of earnings, WPP and Havas are not included in 2Q13 results. -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% MDC Partners vs. Peers Trailing 12 M
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 (used in) Continuing Operating Activities $86.6 ($16.8) $54.6 ($3.5) Distributions 0.0 0.2 3.1 0.2 Interest Expense, net 10.3 11.8 22.7 22.7 Changes in Working Capital (73.6) 38.0
Slide 13: Available Liquidity
13 AVAILABLE LIQUIDITY June 30, 2013 December 31, 2012 (US$ in millions) Commitment Under Facility $225.0 $150.0 Drawn - - Undrawn Letters of Credit 5.1 4.8 Funds Available Under Facility $219.9 $145.2 Total Cash 77.3 60.3 Liquidity $297.2 $205.5
Slide 14: 2013 Financial Outlook
14 • Continued strong year to date financial results, margin expansion and new business wins lead us again to increase financial guidance for 2013 2013 FINANCIAL OUTLOOK Prior Revised Implied 2012 2013 2013 Year over Year Actuals Guidance Guidance Change Revenue $1.07 billion $1.145 - $1.170 billion
Slide 15: Appendix
15 APPENDIX
Slide 16: Temporal Put Obligations and Impact on EBITDA
16 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2013 1.5 0.4 1.9 1.5 2014 1.4 0.5 1.9 0.2 2015 3.8 0.6 4.4 1.7 2016 2.8 0.1 2.9 0.0 Thereafter 4.9 0.0 4.9 0.3 Total $14.4 $1.6 $16.0 $3.7 Effective Multiple 4.3 Estimated Put Impact at J
Slide 17: Summary of Cash Flow
17 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW (US$ in millions) 2013 2012 Cash flows provided by (used in) continuing operating activities $54.6 ($3.5) Discontinued operations (0.5) (3.1) Net cash provided by (used in) operating activities $54.1 ($6.6) Cash flows provided by (us
Slide 18: Definition of Non-GAAP Measures
18 MDC TODAY 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. Org
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