Slide 1: Management Presentation Fourth Quarter 2018 Results
Management Presentation Fourth Quarter 2018 Results March 15, 2019
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation contains forward-looking statements. Statements in this presentation that are not historical facts, including without limitation statements about the Company’s beliefs and expectations, earnings guidance, recent business and economic t
Slide 3: Summary
SUMMARY Revenue impacted by client reductions and deferrals; Strongest net new business wins in two years give visibility to improved revenue growth in 1Q Adjusted EBITDA impacted by the cost of implementing new accounting rules, as well as restructuring-related severance and real estate consoli
Slide 4: Fourth Quarter 2018 Financial Highlights
FOURTH QUARTER 2018 FINANCIAL HIGHLIGHTS Adopted ASC 606 effective January 1, 2018 using the Modified Retrospective Method, therefore reported results are not comparable with the prior period (which continues to be reported under ASC 605). See slide 6 for a reconciliation. Revenue of $393.7 mill
Slide 5: Twelve Months 2018 Financial Highlights
TWELVE MONTHS 2018 FINANCIAL HIGHLIGHTS Adopted ASC 606 effective January 1, 2018 using the Modified Retrospective Method, therefore reported results are not comparable with the prior period (which continues to be reported under ASC 605). See slide 6 for a reconciliation. Revenue of $1.48 billio
Slide 6: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS 1 Effective January 1, 2018, we adopted ASC Topic 606, “Revenue from Contracts with Customers” (ASC 606). As a result, comparative prior periods have not been adjusted and continue to be reported under ASC 605 "Revenue Recognition" (ASC 605). We have provided a reco
Slide 7: Impact of Adoption of ASC 606 on Reported Results
IMPACT OF ADOPTION OF ASC 606 ON REPORTED RESULTS (US$ in millions, except percentages) Three Months Ended December 31, 2018 Twelve Months Ended December 31, 2018 Adjusted to Adjusted to Exclude Impact of Exclude Impact of As Reported Adjustments Adoption of ASC 606 As Reported Adjustments Adoption
Slide 8: Revenue Summary
REVENUE SUMMARY (US$ in millions, except percentages) Three Months Ended Twelve Months Ended Revenue $ % Change Revenue $ % Change December 31, 2017 (ASC 605) $402.7 $1,513.8 Organic revenue growth (decline) (1.3) (0.3%) 0.9 0.1% Non-GAAP acquisitions (dispositions), net 9.6 2.4% 13.6 0.9% Foreign e
Slide 9: Revenue by Geography and Segment
REVENUE BY GEOGRAPHY AND SEGMENT (US$ in millions, except percentages) Three Months Ended December 31, 2018 Twelve Months Ended December 31, 2018 Total Total Organic Revenue Total Total Organic Revenue Revenue Growth Growth (Decline) Revenue Growth Growth (Decline) United States $304.9 0.4% (1.2%) $
Slide 10: Revenue by Client Industry
REVENUE BY CLIENT INDUSTRY Q4 2018 Mix Year-over-Year Growth by Category Transportation and Travel/Lodging Other Automotive 6% 10% 5% Q4 2018 2018 YTD Tachnology 8% Above Transportation and Transportation and 10% Travel/Lodging, Travel/Lodging, Other Food & Beverage Technology, Other 21% Financials
Slide 11: Adjusted EBITDA
ADJUSTED EBITDA (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, 2018 2017 2018 2017 (ASC 606) (ASC 605) % Change (ASC 606) (ASC 605) % Change Advertising and Communications Group $ 60.4 $ 74.2 (18.6) % $ 201.3 $ 235.9 (14.6) % Global Integrated
Slide 12: Summary of Cash Flow
SUMMARY OF CASH FLOW (US$ in millions) Twelve Months Ended December 31, 2018 2017 Net cash provided by operating activities $17.3 $71.8 Net cash used in investing activities (50.4) (20.9) Net cash provided by (used in) financing activities 21.4 (32.6) Effect of exchange rate changes on cash, cash eq
Slide 13: Appendix
APPENDIX 12
Slide 14: Revenue Trending Schedule
REVENUE TRENDING SCHEDULE (US$ in thousands, except percentages) 2016 (ASC 605) 2017 (ASC 605) 2018 (ASC 606) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Revenue United States $252,199 $272,992 $274,506 $304,016 $1,103,712 $274,682 $304,463 $289,701 $303,517 $1,172,364 $256,524 $295,268 $296,544 $
Slide 15: Adjusted EBITDA Trending Schedule
ADJUSTED EBITDA TRENDING SCHEDULE (US$ in thousands, except percentages) 2016 (ASC 605) 2017 (ASC 605) 2018 (ASC 606) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD ADVERTISING AND COMMUNICATIONS GROUP Revenue $309,042 $337,047 $349,254 $390,442 $1,385,785 $344,700 $390,532 $375,800 $402,747 $1,513,7
Slide 16: Reconciliations
RECONCILIATIONS (US$ in millions) 2016 2017 2018 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Non-GAAP acquisitions (dispositions), net GAAP revenue from current year acquisitions $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,066 $ 12,734 $ 12,317 36,117 GAAP revenue from prior year acquisitions
Slide 17: Available Liquidity
AVAILABLE LIQUIDITY1 (US$ in millions) December 31, 2018 December 31, 2017 Commitment Under Facility $325.0 $325.0 Drawn $ 68.1 $ - Undrawn Letters of Credit 4.7 5.1 Undrawn Commitments Under Facility $252.2 $319.9 Total Cash & Cash Equivalents 30.9 46.2 Liquidity $283.0 $366.1 1 Subject to availabl
Slide 18: Current Credit Picture
CURRENT CREDIT PICTURE $325 million Credit Facility Covenants (1) Current Debt Maturity Profile (5) 2024 Senior Notes $900 2021 Credit Facility $68 2018 2019 2020 2021 2022 2023 2024 1 These ratios and measures are not based on generally accepted accounting principles and are not presented as altern
Slide 19: Senior Secured Revolving Credit Facility Amendment
SENIOR SECURED REVOLVING CREDIT FACILITY AMENDMENT On March 12, 2019, the Company entered into an amendment (the “Amendment”) to the existing senior secured revolving credit facility, dated as of May 3, 2016 (as amended, the “Credit Agreement”). The Amendment provides financial covenant relief by in
Slide 20: Temporal Put Obligations and Impact on Adjusted EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON ADJUSTED EBITDA Estimated Put Impact at December 31, 2018 Payment Consideration Incremental (US$ in millions) Cash Stock Total Income in Period 2019 $4.7 $0.0 $4.7 $2.4 2020 2.3 0.0 2.3 0.0 2021 4.1 0.1 4.2 1.8 2022 2.9 0.0 2.9 0.0 Thereafter 3.3 0.0 3.3 0.2 To
Slide 21: 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 22: MDC Partners Innovation Center contact details
MDC Partners Innovation Center 745 Fifth Avenue, Floor 19 New York, NY 10151 646-429-1800 www.mdc-partners.com