Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q3 2009 Earnings Presentation
17 slides from Stagwell's earnings presentation, Oct 30, 2009
Slide 1: Management Presentation – Third Quarter 2009 Results
Management Presentation October 29, 2009 Third Quarter 2009 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(X)PARTNERS Forward Looking Statements and Other Information ‘This presetaton incing ou “2009 Financial Outlook, contains forward-looking stuemeras. The Company's represotaives may also make fora Joking tatment oral rom tne o tine. Statements in this presetatin hare nt hstoccl facts, including sa
Slide 3: Summary of Consolidated Results
MDC(X)PARTNERS Summary of Consolidated Results “Three Months Baded September 30, Nine Menthe Ende Seprember 3 cc) 20S _% Change 2009 2008 _% Change Revenue Tome $ wr 9% SIMD SD aH Operating Expenses Cost of rice so 885 6 88% 256 Aa Ofc and general expenses 31 HS 151% nF mk oa Deyeesnton nd anxtation
Slide 4: Summary of Segment Results — Revenue
MDC(X)PARTNERS Summary of Segment Results — Revenue “Three Months Ended September 3, ‘Nine Months Ended September 30. 09 2M Change 30092008 Change Revenue Satepc Marketing Services S M3 8 813 62% = $ MIT S$ DOs as % Customer Relatirship Management 63 327 090) % 87 DTH 6 Specialize! Communication Ser
Slide 5: Strategic Marketing Services Customer Relationship Management Weighted Average
MDC(X)PARTNERS Strategic Customer Weighted Marketing Relationship Average Services Management Total Foreign Exchange Growth 05% Total 61% 195% 5.3%
Slide 6: Customer Relationship Management Specialized Communication Weighted Average
MDC(X)PARTNERS Customer Specialized Weighted Relationship Communication Average Management Services Total Foreign Exchange Growth 0.1% Total 05%. AM% 20.7% 9.9%
Slide 7: Summary of Segment Results - EBITDA
Summary of Segment Results - EBITDA MDC(X)PARTNERS eBrrDs Seg Marketing Services ‘moran ‘Casa Relaiatip Menge Spit Comaniation Serves “Marketing Communications ‘margin Corporate Expenses ‘Nine Monthy ded September 3 Zp 2008 Chane so $0 BS% S$ S$ MT MS 205 1739% Dm ISS 26 Bo 83) % 2s aay % Wis 9386 a
Slide 8: Summary of Segment Results - MDC's Share of EBITDA
MDC(X)PARTNERS Summary of Segment Results - MDC’s Share of EBITDA “Three Months Ended Sepember 3, ‘Nine Months Ended September 30, 2009 2066 Change 292% Change MDCEBITDA, Sttegie Mating Services s 2 $ ne BS% $G$ MS 0% (Castor Relationship Managerent 26 30 (16: % 72 tak % Spied Conmniesion Series Ls
Slide 9: Free Cash Flow
MDC(X)PARTNERS Free Cash Flow “Three Months Ended September 30, Nine Months Ended September 30, (USS in lon 2009, 2008. 2009) 2008 MDC EBITDA $179 S161 S65 $89 Capital Expenditures aa «sy 63 (104) Cash Taxes on @D os) 9 ‘Cash interest, net and othe 26 ie) (82) (69)
Slide 10: Summary Cash Flow Data
MDC(}) PARTNERS Summary Cash Flow Data Nine Months Ended September 30, (USS in milion 2009 2008. ‘Cash flows provided by continuing operating activities S28 Discontinued sri Effect of exchange rate changes on cash and cash equivalents (905) (S04
Slide 11: Balance Sheet Refinancing: New Senior Notes
10 Balance Sheet Refinancing: New Senior Notes Principal Amount MDC(X)PARTNERS $225 Million Date October 23, 2009 Maturity November 1, 2016-7 Year Security Unsecured Coupon 11% Ratings Moody's - Corporate: B1; Notes: B2 S&P: Corporate: BB-; Notes: B+
Slide 12: Balance Sheet Refinancing: New Revolving Credit Facility
"1 Balance Sheet Refinancing: New Revolving Credit Faci MDC(X)PARTNERS ‘Amount ‘$75 Million Type Senior Secured Maturity October 23, 2014 ~ 5 Year Facility Fee 50bps per annum Drawn Rate Prime + 300bps Covenants + Minimum EBITDA: $50 million - Fixed Charge Coverage Ratio: 1,25:1.0 « Senior Leverage
Slide 13: Temporal Put Obligations and Impact on EBITDA
12 MDC(X)PARTNERS Temporal Put Obligations and Impact on EBITD. Estimated Put Impact at September 30,2009 Payment Consideration Tneremental {nti Cash Stock Total EBITDA in Period 2009 $92 $06 598 sl 2010 16 on W 03 201 13 06 20 o7 2012 70 os 33 16 ‘Thereafter 86 La wot Ll Total 3279 32 SSL 49 Note:
Slide 14: Earnout Obligations
13 Earnout Obligations Estimated Earnout Im MDC(X)PARTNERS September 30, 2009 WSSin nitions Cash Total 2009 $2.0 $20 2010 53.0 564 2011 04 o4 ‘Thereafter 82 86 363.6 39 3675 "ose Pro Fama orp op of CF ap Osaher 5, now Wane san en! pak
Slide 15: 2009 Financial Outlook
14 2009 Financial Outlook MDC(X)PARTNERS Original June September Implied 2009 Revised Revised Year over Yes Guidance Guidance Guidance ‘Change Revenue $590 -$605 million $545 -$575 millon MDCs Share of EBITDA $63 -$65 millon $63 $65 million Free Cash Flow $34-$36nillion __ $37-$29 million
Slide 16: Appendix
Appendix MDC(K)PARTNERS
Slide 17: Definition of Non-GAAP Measures
16 MDC(X)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. + MDC's Share of EBITDA: MDC’s Share of EBITDA is a non-GAAP measure, that represents operating profit plus dep