Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — FY2006 Earnings Presentation
18 slides from Stagwell's earnings presentation, Mar 9, 2007
Slide 1: Fourth Quarter & Full Year 2006 Results
Management Presentation March 8, 2007 Fourth Quarter & Full Year 2006 Results MDC(X)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(()PARTNERS Forward Looking Statements and Other Information Ths presentation coats fortarGiokng statements. The Coapasy'sepeseaes any also make foread-bokieg surements only fous te fo Hae Statements a ts presetaton tae aot striel ic loc sateen abet the Compas bees ad expecstins recent busaes and
Slide 3: 2006 Highlights
MDC(W)PARTNERS 2006 Highlights +Organic growth T 17% in quarter and tT 11% in year +MDC's EBITDA T 57% in quarter and tT 40% in year *Clean SOX opinion
Slide 4: 2006 Actual Results vs. Prior Guidance
MDC(K)PARTNERS 2006 Actual Results vs. Prior Guidance 33 nts eg pr a) Tirketing Corporate Communications Expenses nsolidated Tetual Guidance [VARA Guidance UARiwal Guidance Revenue S237 $385-9395 > : S237 385-5395 MDC Share of EBITDA ® SH1 52-54 | BA) (8205-8215) | 69 305-335 Cash EPS? Sli6$1.20-$12
Slide 5: Summary of Consolidated Results
MDC(()PARTNERS Summary of Consolidated Results Los rm Cntning Operations 6B ay ap ‘aeoae Gu) seam! perce iW? a8), a 3
Slide 6: Summary of Segment Results — Revenue
Summary of Segment Results — Revenue MDC(K)PARTNERS “Tisee Months Ended December 1, Boog 0S Change Revane ‘Santee Maat Senses som sso 89 56 ‘ (Cotes React Manage 22 161 Be 9 12 265% Speco Commmnrain Sere 31 253 19% 93 2 53% Total Reverse Ts Fes as aT con 166 3
Slide 7: Fourth Quarter 2006 Marketing Communications Revenue Growth by Segment
MDC(})PARTNERS Fourth Quarter 2006 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services Management Services Total Acquisition Growth 2.8% : 9.2% 3.9% Foreign Exchange Growth 03% : 1.8% 0.6% on th sonnet Ca)
Slide 8: Full Year 2006 Marketing Communications Revenue Growth by Segment
Full Year 2006 Marketing Communications Revenue Growth by Segment MDC(X)PARTNERS strategie Customer Specialized == Weighted Marketing -Relatowship Communication Average Services Management Serves Tota Acquisition & Other Growth 68% . 36% 4m Fonsi Exchange Gronth orm : 25% 10% Oreanie Growth 109% 263
Slide 9: Summary of Segment Results — EBITDA
Summary of Segment Results — EBITDA MDC(})PARTNERS 306. 3008 3 Chon EBITDA Sate Maen Seiet s me $29 $93 10% (Catone Relttothp Memagenest as % 70 So an SpecatzedConzancaton Serces 2% ng no an % ‘Marketing Gommeniains ne 7a os ge margin wes se Conperste Expenses Cr wy ya Toul EBITDA sms $164 a eC more
Slide 10: Summary of Segment Results - MDC's Share of EBITDA
MDC(X)JPARTNERS Summary of Segment Results - MDC’s Share of EBITDA (iam Tizee Mohs Ended December 3 EE EC MDcEBITDS ‘repeating Sesies $3 sm soe soon (CotenerRlaontp Magee! 26 16 o 49 Speciaized Commansesion Series 29 nM mn m Mavketiag Communication OE 159 $i cay gin mes Be BM Corporate Cn on my ase
Slide 11: Cash EPS Reconciliation
MDC(X)PARTNERS Cash EPS Reconciliation (CSS in lions) Thee Monthy Tooke Monthy Ended Ended 12/31/2006 1231/2006 TToss fom Contaning Operations Cy CaS) Depreciation, Amortization & Other 68 20 ‘Stock Based Compensation 14 84 Impairment charges & Other 1 13 (Cash Eamings OF ey Diluted Shares 239 a9 [G
Slide 12: Free Cash Flow
"1 MDC(K)PARTNERS Free Cash Flow ‘Twelve Months Ended (USS somes) December 31, 2006 ‘MDC EBITDA, $360 ‘Cash Distributions to MDC fiom ‘Uaconsolidsted Antes os Capital Expenditures - Maintenance os) ‘Cash Taxes a3 Cash arenes, 2 Fr 180 Capital Expendites- Investment 32) FCF, net of investment spendin
Slide 13: Liquidity Profile
12 Liquidity Profile Available Liquidity at December 3, 2006 Stamens “Conuniment Under Credit Facligy Bak Debt ‘Borrorsings Under Credit Facility Leners of Cred Funds Available Under Creit Facility s Available Cash Liquidity MDC(W)PARTNERS 365 49 450 39 27 66 93
Slide 14: Potential Contractual Put Obligations and Impact on EBITDA
MDC(X)PARTNERS Potential Contractual Put Obligations and Impact on EBITDA Estimated Put Impact at December 31, 2006 @SSin mind) Cash Stock EBITDA 2007 977 so sis 2008, 288 7 97 2009 Bo 38 1s 2010 307 84 32 2011 16 10 1a Thereafter 100 29 20 Total 3s 3349 3197 “fective Mutiple 32
Slide 15: Priorities for 2007
14 MDC(()PARTNERS Priorities for 2007 +Organic growth -Improve efficiency & effectiveness of Corporate +Refinance credit facility; execute a capital plan to support strategy for growth +Enhance capabilities via strategic acqui step-ups ions, tuck-unders, lift outs and
Slide 16: 2007 Financial Outlook
15 MDC(X)PARTNERS 2007 Financial Outlook (9S amie cpr hee) Navketing Corporate Communications Expenses Consolidated Revenue $490 -$500 : $450 - $500 MDC Share of EBITDA 8595-9605 S195 -5205 $390-S410 cash EPS? $1.28-$1.32 Free Cash Flow s1s0-$170 Shares Outstanding - Diluted 288 {W NDCs Sef EBITDA =
Slide 17: Appendix
Appendix MDC(})PARTNERS
Slide 18: Definition of Non-GAAP Measures
7 MDC(X)PARTNERS Definition of Non-GAAP Measures + EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization, stock-based compensation and impairment charges. A reconciliation of "EBITDA" to the US GAAP reported results of operations has been provided