Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q1 2021 Earnings Presentation
20 slides from Stagwell's earnings presentation, May 5, 2021
Slide 1: Management Presentation First Quarter 2021 Results
Management Presentation First Quarter 2021 Results May 5, 2021
Slide 2: Forward-Looking Statements & Other Information
2 This presentation contains forward-looking statements. Statements in this presentation that are not historical facts, including without limitation the information under the heading "Financial Outlook" and statements about the Company’s beliefs and expectations, earnings (loss) guidance, recent bus
Slide 3: Forward-Looking Statements & Other Information (Cont.)
3 • the Company’s ability to achieve the full amount of its stated cost saving initiatives; • the Company’s implementation of strategic initiatives; • the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when d
Slide 4: First Quarter 2021 Highlights
4 ----- DRAFT ----- • Revenue of $307.6 million versus $327.7 million in the prior year period, a decline of 6.2% • Organic revenue decreased by 6.9% versus the prior year period, continuing to narrow the year-over- year revenue decline amidst the pandemic recovery • Organic revenue was unfavorably
Slide 5: Consolidated Revenue and Earnings
5 CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) Three Months Ended March 31, 2021 2020 % Change Revenue $ 307.6 $ 327.7 (6.2) % Operating Expenses Cost of services sold 186.9 222.7 (16.1) % Office and general expenses 83.9 66.4 26.5 % Depreciation and amortization 8.2 9.2 (
Slide 6: Revenue Summary
6 Organic revenue declined 6.9% in the first quarter of 2021 versus the prior year period. REVENUE SUMMARY (US$ in millions, except percentages) Three Months Ended Revenue $ % Change March 31, 2020 $ 327.7 Organic revenue (22.6) (6.9) % Non-GAAP acquisitions (dispositions), net (2.1) (0.6) % Foreign
Slide 7: Revenue by Geography and Segment
7 REVENUE BY GEOGRAPHY AND SEGMENT Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2020 2021 Q1 Q2 Q3 Q4 Q1 Total Total Organic Revenue Total Total Organic Revenue Total Total Organic Revenue Total Total Organic Revenue Total Total Organic Revenue Revenue Growth Grow
Slide 8: Revenue by Client Industry
8 Top 10 clients decreased to 21.7% of revenue versus 22.4% a year ago (largest <4.2%) REVENUE BY CLIENT INDUSTRY Other 10% Food & Beverage 18% Communications 6% Retail 10% Consumer Products 15% Healthcare 10% Financials 8% Technology 15% Automotive 5% Transportation and Travel/Lodging 3% Q1 2021 QT
Slide 9: Adjusted EBITDA
9 ADJUSTED EBITDA Note: Actuals may not foot due to rounding. (US$ in millions, except percentages) % Change 2020 2021 Q1 2021 vs. Q1 2020 Q1 Q2 Q3 Q4 Q1 Integrated Networks - Group A 16.3 17.2 21.0 25.3 22.5 37.8 % Integrated Networks - Group B 17.1 16.4 29.6 21.2 25.9 51.0 % Media & Data Network 1
Slide 10: Covenant EBITDA
10 COVENANT EBITDA 2020 2021 Covenant EBITDA (LTM) (1) (US$ in millions) Q1 Q2 Q3 Q4 Q1 Q4-2020- LTM Q1-2021 - LTM Net income (loss) attributable to MDC Partners Inc. common shareholders $ (2.4) $ (4.1) $ 0.4 $ (237.1) $ 0.9 $ (243.3) $ (239.9) Adjustments to reconcile to operating income (loss): Ac
Slide 11: Summary of Cash Flow
11 SUMMARY OF CASH FLOW (US$ in millions) Three Months Ended March 31, 2021 2020 Net cash provided by (used in) operating activities $ 47.1 $ (20.0) Net cash provided by (used in) investing activities (7.0) 16.6 Net cash provided by financing activities 13.4 119.6 Effect of exchange rate changes on
Slide 12: 2021 Financial Outlook
12 2021 FINANCIAL OUTLOOK Organic Revenue Growth We expect approximately 7 to 9% growth in organic revenue. Foreign Exchange Impact, net No estimated impact at this time. Impact of Non-GAAP Acquisitions (Dispositions), net Our current expectations are that the impact of acquisitions, net of disposit
Slide 13: Appendix
13 APPENDIX
Slide 14: Revenue Trending Schedule
14 REVENUE TRENDING SCHEDULE Note: See appendix for definitions of Non-GAAP Financial Measures Note: Actuals may not foot due to rounding (US$ in thousands, except percentages) 2020 2021 Q1 Q2 Q3 Q4 YTD Q1 Revenue United States $ 264,561 $ 210,342 $ 228,256 $ 256,477 $ 959,636 $ 242,580 Canada 18,25
Slide 15: Adjusted EBITDA Trending Schedule
15 ADJUSTED EBITDA TRENDING SCHEDULE (1 )Adjusted EBITDA is a non-GAAP financial measure. See appendix for the definition. Note: Actuals may not foot due to rounding (US$ in thousands) 2020 2021 Q1 Q2 Q3 Q4 YTD PARTNER FIRMS Revenue: $ 327,742 $ 259,678 $ 283,423 $ 328,168 $ 1,199,011 $ 307,585 Oper
Slide 16: Reconciliations
16 RECONCILIATIONS (1) Contributions to organic revenue represents the change in revenue, measured on a constant currency basis, relative to the comparable pre-acquisition period for acquired businesses that is included in the Company's organic revenue growth (decline) calculation. (2) Prior year re
Slide 17: Available Liquidity
17 AVAILABLE LIQUIDITY1 1 Subject to available borrowings under the Credit Facility. Note: Actuals may not foot due to rounding (US$ in millions) March 31, 2021 December 31, 2020 Commitment Under Facility 211.5 211.5 Drawn 20.0 — Undrawn Letters of Credit 19.2 18.7 Undrawn Commitments Under Facility
Slide 18: Current Credit Picture
18 CURRENT CREDIT PICTURE 1 These ratios and measures are not based on generally accepted accounting principles and are not presented as alternatives measures of operating performance or liquidity. Some of these ratios and measures include, among other things, pro forma adjustments for acquisitions,
Slide 19: Definition of Non-GAAP Financial Measures
19 DEFINITION OF NON-GAAP FINANCIAL MEASURES In addition to its reported results, MDC Partners has included in its earnings release and supplemental management presentation certain financial results that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management beli
Slide 20: MDC Partners contact details
MDC Partners One World Trade Center, Floor 65 New York, NY 10007 646-429-1800 www.mdc-partners.com