Slide 1: Management Presentation Second Quarter 2017 Results
Management Presentation Second Quarter 2017 Results August 7, 2017
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “2017 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 fact
Slide 3: Second Quarter 2017 Summary
SECOND QUARTER 2017 SUMMARY Solid business fundamentals continuing into the second quarter Organic growth approx. 5x peer average, including steady strength in the U.S., reacceleration Internationally, and broad gains across client industry verticals Adjusted EBITDA margin impacted by increase
Slide 4: Second Quarter 2017 Financial Highlights
SECOND QUARTER 2017 FINANCIAL HIGHLIGHTS Revenue increased 15.9% to $390.5 million from $337.0 million Organic revenue growth of 11.7%, including a 360 basis points benefit from increased billable pass-through costs Net income attributable to MDC Partners common shareholders increased to $9.3
Slide 5: First Half 2017 Financial Highlights
FIRST HALF 2017 FINANCIAL HIGHLIGHTS Revenue increased 13.8% to $735.2 million from $646.1 million Organic revenue growth of 8.7%, including a 210 basis points benefit from increased billable pass-through costs Net loss attributable to MDC Partners common shareholders improved to ($1.7) millio
Slide 6: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 (1) % Change 2017 (1) 2016 (1) % Change Revenue $ 390.5 $ 337.0 15.9 % $ 735.2 $ 646.1 13.8 % Operating expenses Cost of services sold 267.8 228.8 17.0 % 505.4 440.
Slide 7: Revenue Summary
REVENUE SUMMARY (US$ in millions, except percentages) Three Months Ended Six Months Ended Revenue $ % Change Revenue $ % Change June 30, 2016 $337.0 $646.1 Foreign Exchange (5.1) (1.5%) (7.0) (1.1%) Non-GAAP Acquisitions (Dispositions), net (1) 19.3 5.7% 39.6 6.1% Organic Revenue Growth (Decline) 39
Slide 8: Revenue by Geography
REVENUE BY GEOGRAPHY (US$ in millions, except percentages) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Total Total Organic Revenue Total Total Organic Revenue Revenue Growth Growth (Decline) Revenue Growth Growth (Decline) United States $304.5 11.5% 11.5% $579.1 10.3% 10.3% Canad
Slide 9: Revenue by Client Industry
REVENUE BY CLIENT INDUSTRY Q2 2017 Mix Year-over-Year Growth by Category Q2 2017 2017 YTD Above 10% Communications, Food Communications, Food & Beverage, Financials & Beverage, Financials, Automotive 0% to 10% Consumer Products, Consumer Products, Automotive, Retail, Healthcare, Healthcare, Retail,
Slide 10: Adjusted EBITDA
ADJUSTED EBITDA (US$ in millions, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 (1) % Change 2017 2016 (1) % Change Revenue $ 390.5 $ 337.0 $ 735.2 $ 646.1 Net income attributable to MDC Partners Inc. 11.3 0.8 0.7 (22.8) Adjustments to reconcile to operating pro
Slide 11: Summary of Cash Flow
SUMMARY OF CASH FLOW (US$ in millions) Six Months Ended June 30, 2017 2016 Net cash provided by (used in) operating activities $23.7 ($110.2) Net cash used in investing activities ($22.9) ($16.8) Net cash (used in) provided by financing activities ($7.3) $81.4 Effect of exchange rate changes on cash
Slide 12: 2017 Financial Outlook
2017 FINANCIAL OUTLOOK Prior Revised Guidance Guidance Organic Revenue approximately 4% growth approximately 7% growth Adjusted EBITDA Margin approximately 100 basis points increase approximately 60 basis points increase On track with to achieve full year 2017 profit targets Note: The Company has
Slide 13: Appendix
APPENDIX 12
Slide 14: Revenue Trending Schedule
REVENUE TRENDING SCHEDULE (US$ in thousands, except percentages) 2015 2016 2017 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Revenue United States $252,018 $271,375 $270,512 $291,147 $1,085,051 $252,199 $272,992 $274,506 $304,016 $1,103,712 $274,682 $304,463 $579,145 Canada 29,826 35,433 29,560 34,221 12
Slide 15: Adjusted EBITDA Trending Schedule
ADJUSTED EBITDA TRENDING SCHEDULE (US$ in thousands, except percentages) 2015 2016 2017 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 YTD TOTAL Revenue $302,222 $336,606 $328,415 $359,013 $1,326,256 $309,042 $337,047 $349,254 $390,442 $1,385,785 $344,700 $390,532 $735,232 Operating profit (loss) 5,195 44,482
Slide 16: Reconciliations
RECONCILIATIONS (US$ in millions) 2015 2016 2017 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Non-GAAP acquisitions (dispositions), net GAAP revenue from prior year acquisitions * n/a n/a n/a n/a n/a $ 6,556 $ 2,817 $ 17,083 $ 24,657 $ 51,113 $ 18,552 $ 24,983 $ 43,535 Foreign exchange impact n/a n/a n/a
Slide 17: Available Liquidity
AVAILABLE LIQUIDITY1 (US$ in millions) June 30, 2017 December 31, 2016 Commitment Under Facility $325.0 $325.0 Drawn $ 26.7 54.4 Undrawn Letters of Credit 5.0 4.4 Undrawn Commitments Under Facility $293.3 $266.2 Total Cash & Cash Equivalents 20.3 27.9 Liquidity $313.6 $294.1 1 Subject to available b
Slide 18: Current Credit Picture
CURRENT CREDIT PICTURE $325 million Credit Facility Covenants (1) Current Debt Maturity Profile (5) (US$ in millions) Twelve Months Ended June 30, December 31, 2017 2016 Covenants I. Total Senior Leverage Ratio 0.1 0.3 Maximum per covenant 2.0 2.0 II. Total Leverage Ratio 4.7 5.0 Maximum per covenan
Slide 19: Temporal Put Obligations and Impact on EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Estimated Put Impact at June 30, 2017 Payment Consideration Incremental (US$ in millions) Cash Stock Total Income in Period 2017 $3.2 $0.0 $3.2 $2.8 2018 2.8 0.0 2.8 0.9 2019 2.4 0.1 2.5 0.0 2020 3.3 0.1 3.4 0.5 Thereafter 1.9 0.0 1.9 0.0 Total $13.6 $0.
Slide 20: Definition of Non-GAAP Measures
DEFINITION OF NON-GAAP 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 believes that suc
Slide 21: MDC Partners Innovation Center
MDC Partners Innovation Center 745 Fifth Avenue, Floor 19 New York, NY 10151 646-429-1800 www.mdc-partners.com