Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q1 2009 Earnings Presentation
16 slides from Stagwell's earnings presentation, Apr 28, 2009
Slide 1: Management Presentation – First Quarter 2009 Results
Management Presentation April 28, 2009 First Quarter 2009 Results MDC()PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(M)PARTNERS Forward Looking Statements and Other information ‘This presentation, including our “2009 Financial Outlook”, contains forward-looking statements. The Company’: reprecantatives may also make forward looking statement: erally fom time to time. Statements inthis presentation that are not
Slide 3: Summary of Consolidated Results
x Summary of Consolidated Results MDC(M)PARTNERS (USS muon) ‘Three Months Ended December 31, 2009, % Change Revenue S$ 1267 $ 1409 (10.0) % ‘Operating Expenses Cost of services sald 959 55 20.1) % SG&A (9.5) % D&A (223) % Operating Income 83.5% Other income (expense) (09) 02 Income tax expense (reco
Slide 4: Summary of Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (U5 inmiions) Three Months Ended March 31, 2009 2008 % Change Marketing Services $ 289 $ 770 25 % ‘Customer Relationship Management 29.1 347 (16.0) % Specialized Commmnication Services 18.7 293 (360) % Amos and peceninges mayne foot deo rouning
Slide 5: Revenue growth by segment
Customer Relationship Management Specialized Communication Serv Acquisition Growth - - Foreign Exchange Growth 0.0% 10.7% Total 2s “16.0% “36.0% MDC()PARTNERS Weighted Average
Slide 6: EBITDA by segment and margin
CS iomitiny MDC(()PARTNERS EBITDA Strategic Marketing Services margin Customer Relationship Management margin Specialized Commmnication Services margin Marketing Communications margin Corporate Expenses ‘margin mount nd perconoes may nto de to rewning 8
Slide 7: Summary of Segment Results - MDC's Share of EBITDA
MDC(M)PARTNERS of Segment Results - MDC’s Share of EBITDA ss ntions ‘Three Months Ended March 31, 8 % Change MDC EBITDA ‘Strategic Marketing Services $6 $ 83 404 % Customer Relationship Management 17 30 (835) % Specialized Commmnication Services 05 26 (80.2) % Marketing Communications BS BS (04) % C
Slide 8: Free Cash Flow
MDC(M)PARTNERS Free Cash Flow Three Months Ended March 31, (USS in milions) 2009 2008 MDC EBITDA sud $108 Capital Expenditures: (0.8) 42) Cash Taxes ol 03) Cash Interest, net 2.6) 3) Amount and percentages may nto de to owning )
Slide 9: Summary Cash Flow Data
MDC(X)PARTNERS Summary Cash Flow Data ‘Three Months Ended March 31, (US$ ix millions) 2009 2008 Cash flows provided by (used in) continuing operating activities (sito) Discontinued — : ‘ Effect of exchange rate changes on cash and cash equivalents $0.4) SOL outs and percentages may nt fot dt rouning
Slide 10: Net Bank Debt
© MDC(M)PARTNERS Net Bank Debt (USS in milion) 3/31/2009 3/31/2008 Revolving credit facility $s 196 $ 186 Bank debt 130.0 Ls 149.6 $ 101 Less: Cash and cash equivalents (46.2) 62) Amounes and prcaages may nto du rousing,
Slide 11: Liquidity Profile
MDC(K)PARTNERS Liquidity Profile Available Liquidity at March 31, 2009 CSinmitees (Commitment Under Facility $1850 Revolver 196 ‘Term Loan A 600 Delayed Draw Tenn Loan B 700 1485 Letters of Credit 46 Funds Available Under Facility $308 Available Cash 309 Liquidity $707 10
Slide 12: Temporal Put Obligations and Impact on EBITDA
Temporal Put Obligations and Impact on EBITDA MDC(M)PARTNERS The following estimates assume that the underlying agencies continue to perform at their current levels: (G55 micas 2009 2010 2011 2012 Thereafter Total ‘Estimated Put Impact at March 31, 2009 ‘Payment Consideration Incremental Cash Stock
Slide 13: Earnout Obligations
MDC(()PARTNERS Earnout Obligations Estimated Earnout Impact at March 31, 2009 ‘Payment Consideration (23S inion) Cash Stock Total 2009 $33 $0.0 $33 2010 33.8 99 437 2011 O1 0.0 O41 $37.1 $99 $47.0
Slide 14: 2009 Financial Outlook
43 MDC()PARTNERS 2009 Financial Outlook Implied 2009 ‘Year aver Year Growth Revenue ‘MDC's Share of EBITDA. Free Cash Flow ‘Note: See appendix fr dafinitins of non-GAAP measures
Slide 15: Appendix
Appendix MDC(})PARTNERS
Slide 16: Definition of Non-GAAP Measures
+ Free Cash Flo) MDC(M)PARTNERS Definition of Non-GAAP Measures EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation MOC’s Share of EBITDA: MDC’s Share of EBITDA is a non-GAAP measure, that represents operating profit