Slide 1: Management Presentation: Second Quarter 2012 Results
Management Presentation July 30, 2012 Second Quarter 2012 Results
Slide 2: Forward-looking statements
This presentation, including our “ 2012 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 facts, including statements about the Compan
Slide 3: Key Highlights
KEY HIGHLIGHTS • Organic revenue growth of 8.3% for Q2 2012 and 6.9% YTD • Q2 2012 revenue increased 15.2% to $274.1 million versus $238.0 million in Q2 2011 and YTD revenue increased 12.5% to $509.8 million from $453.1 million in the first half of 2011 • Q2 2012 EBITDA decreased to $31.3 million ve
Slide 4: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS Note: Actuals may not foot due to rounding 2012 2011 2012 2011 Revenue 274.1$ 238.0$ 15.2 % 509.8$ 453.1$ 12.5 % Operating Expenses Cost of services sold 188.9 161.1 17.3 % 365.9 318.6 14.8 % Office and general expenses 74.2 52.5 41.4 % 134.3 96.9 38.5 % Depreciatio
Slide 5: Summary of Segment Results - Revenue
SUMMARY OF SEGMENT RESULTS - REVENUE • Strategic Marketing Services delivered 10.7% organic growth • Performance Marketing Services segment returned to organic growth in Q2 2012 • Continued strong new business wins adds visibility to full year goals (US$ in millions, except percentages) 2012 2011 20
Slide 6: Second Quarter 2012 Revenue Growth by Segment
SECOND QUARTER 2012 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 10.7% 3.9% 8.3% Acquisition Growth 8.8% 10.0% 9.2% Foreign Exchange Growth -0.9% -5.1% -2.3% Total 18.6% 8.8% 15.2%
Slide 7: Year to Date 2012 Revenue Growth by Segment
YEAR TO DATE 2012 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 9.6% 1.6% 6.9% Acquisition Growth 7.0% 7.2% 7.0% Foreign Exchange Growth -0.6% -2.9% -1.4% Total 16.0% 5.9% 12.5%
Slide 8: Second Quarter Revenue by Client Sector
SECOND QUARTER REVENUE BY CLIENT SECTOR Note: Actuals may not foot due to rounding Q2 2012 Q2 2011 Consumer Products, 35% Retail, 14% Communications, 12% Other, 15% Financials, 9% Technology, 10% Healthcare, 4% Auto, 3% Retail, 17% Communications, 12% Other, 10% Financials, 7% Consumer Products, 34%
Slide 9: Outperformance Despite More Difficult Comparisons
Outperformance Despite More Difficult Comparisons Note: *Peers include Omnicom, Publicis , Interpublic, WPP, and Havas *Due to timing of earnings, WPP and Havas are not included 2 Q12 ORGANIC GROWTH 2 Q12 +8.3% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% MDC Partners vs. Peers Trailing 12 Month O
Slide 10: Summary of Segment Results - EBITDA
SUMMARY OF SEGMENT RESULTS - EBITDA Note: Actuals may not foot due to rounding 2012 2011 2012 2011 EBITDA Strategic Marketing Services 28.9$ 29.5$ (2.0) % 39.2$ 44.7$ (12.4) % margin 15.7% 19.0% 11.4% 15.1% Performance Marketing Services 7.6 8.4 (9.6) % 10.2 12.7 (19.6) % margin 8.4% 10.2% 6.1% 8.1%
Slide 11: Free Cash Flow
FREE CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2012 2011 2012 2011 EBITDA $31.3 $33.0 $39.2 $48.7 Net Income Attibutable to Noncontrolling Interests (1.6) (2.5) (3.0) (4.1) Capital Expenditures (4.3) (3.3) (8.9) (7.0) Cash Taxes (0.3) (0.1) (0.3) (0.1) Cash Interest, net
Slide 12: Liquidity
LIQUIDITY (US$ in millions) Commitment Under Facility 150.0$ Drawn 124.1 Letters of Credit 5.2 Total Cash 71.7 Available Liquidity at June 30, 2012
Slide 13: 2012 Financial Outlook
2012 FINANCIAL OUTLOOK Implied 2012 Year over Year Guidance Change Revenue $1,050 - $1,075 million +11.3% to +14.0% EBITDA $110 - $115 million +21.2% to +26.7% Free Cash Flow $35 - $40 million +50.8% to +72.3% + Change in Working Capital and Other +$25 million Total Free Cash Flow $60 - $65 million
Slide 14: Appendix
APPENDIX
Slide 15: Temporal Put Obligations and Impact on EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Note: Excludes put rights of $78.9 million exercisable pursuant to termination of employment or death. Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2012 1.5 0.4 1.9 1.4 2013 7.9 0.6 8.5 0.4 2014 2.5 0.9 3.4 0.7 2015 3.4 0.5 3.9 1.2 The
Slide 16: Summary of Cash Flow
SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2012 2011 Cash flows (used in) provided by continuing operating activities ($5.1) ($25.5) Discontinued operations (1.5) (0.2) Net cash (used in) provided by operating activies ($6.6) ($25.7) Cash flows (used in) provid
Slide 17: Definition of Non-GAAP Measures
DEFINITION OF NON - GAAP MEASURES • EBITDA: EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjustments and profit distributions from affiliates . • Organic Gro