Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q1 2015 Earnings Presentation
18 slides from Stagwell's earnings presentation, Apr 27, 2015
Slide 1: Management Presentation First Quarter 2015 Results
April 27, 2015 Management Presentation First Quarter 2015 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: First Quarter 2015 Summary
3 • Solid quarter - results tracking in - line with expectations on all key metrics • Industry leading organic revenue growth • Year over year declines in profitability due to new business recognition timing, as expected • $27.9 million of net annualized new business revenue; robust pipeline • Ongoi
Slide 4: First Quarter 2015 Financial Highlights
4 • Industry - leading organic revenue growth of 7.4% • Revenue increased 10.0% to $302.2 million from $274.9 million • Net loss attributable to MDC Partners of ($32.1) million versus ($8.8) million a year ago • Adjusted EBITDA of $31.2 million versus $35.8 million a year ago • Adjusted EBITDA margi
Slide 5: Consolidated Revenue and Earnings
5 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2015 2014 Revenue 302.2$ 274.9$ 10.0 % Operating Expenses Cost of services sold 210.4 181.5 16.0 % Office and general expenses 74.3 71.3 4.2 % Depreciation and amortization 12.3 10.5
Slide 6: Summary of Segment Results - Revenue
6 • Q1 2015 revenue of $302.2 million represents 10.0% YoY growth • Strength across disciplines and geographies including CRM, Media , Strategic Communications & PR, Advertising, Design , and International SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due to rounding (US$ in millio
Slide 7: Organic Revenue Growth by Segment
7 ORGANIC REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding • Solid overall organic growth of +7.4% on top of +11.0% in Q1 2014 (ex Accent) Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 8.7% 2.7% 7.4% Acquisition Growth 5.1% 2.3%
Slide 8: First Quarter Revenue by Client Industry
8 Q1 2015 Mix Year - over - Year Growth by Category • Fastest growing sectors: Healthcare, Food & Beverage, and Consumer Products • Our top 10 clients declined to 24.3% of revenue in Q1 2015 from 25.0% a year ago, demonstrating the ongoing diversification of the business (largest ~5%) FIRST QUARTER
Slide 9: Organic Growth Highlights Sustained Market Share Gains
9 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 . Havas has not yet reported Q1 2015 results and therefore consensus estimates for organic growth rates are used in place of
Slide 10: Summary of Segment Results – Adjusted EBITDA
10 Note: Actuals may not foot due to rounding • Q1 Adjusted EBITDA down on a year over year basis, as expected, due in part to timing related to revenue recognition for recent new business SUMMARY OF SEGMENT RESULTS – ADJUSTED EBITDA * Other non - recurring items includes ongoing legal fees and othe
Slide 11: Adjusted EBITDA Available for General Capital Purposes
11 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 3 of the Q1 2015 press release for a reconciliation of Net Income (loss) to Adjusted EBITDA. (2) Capital Expenditures, net represent
Slide 12: Available Liquidity
12 AVAILABLE LIQUIDITY (US$ in millions) March 31, 2015 December 31, 2014 Commitment Under Facility $325.0 $325.0 Drawn 19.6 - Undrawn Letters of Credit 4.8 4.8 Funds Available Under Facility $300.6 $320.2 Total Cash & Cash Equivalents 17.6 119.8 Liquidity $318.2 $440.0
Slide 13: 2015 Financial Outlook
13 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 $11
Slide 14: Appendix
14 APPENDIX
Slide 15: Temporal Put Obligations and Impact on EBITDA
15 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2015 2.3 0.0 2.3 3.1 2016 3.5 0.1 3.6 0.0 2017 3.9 0.0 3.9 1.4 2018 5.0 0.0 5.0 1.3 Thereafter 6.8 0.0 6.8 0.0 Total $21.5 $0.1 $21.6 $5.8 Effective Multiple 3.7x Estimated Put Impact at
Slide 16: Summary of Cash Flow
16 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2015 2014 Cash flows used in continuing operating activities ($118.6) ($40.0) Discontinued operations (1.3) 0.7 Net cash used in operating activities ($119.8) ($39.3) Cash
Slide 17: Definition of Non-GAAP Measures
17 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 18: MDC Partners contact details
MDC Partners Innovation Centre 745 Fifth Avenue, Floor 19 New York, NY 10151 646 - 429 - 1800 www.mdc - partners.com