Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q2 2009 Earnings Presentation
16 slides from Stagwell's earnings presentation, Jul 31, 2009
Slide 1: Management Presentation – Second Quarter 2009 Results
Management Presentation July 30, 2009 Second Quarter 2009 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information This presentation, including our “2009 Financial Outlook”, contains forward-looking statements. The Company's representatives may also make forward. looking statements orally fiom time to time. Statements ia this presentation that are a
Slide 3: Summary of Consolidated Results
nN Summary of Consolidated Results MDC(K)PARTNERS Amounts and percentages may not fot die 0 rounding (@ssiemcay ‘Three Months Ended June 30, ‘Six Months Ended June 30, 2009 2008 % Change 3008 2008 __% Change Revenue S 149 $ 1569 dd% $ WIG § 2979 (22 Operating Expenses Cost of services sold 882 103 (
Slide 4: Summary of Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (5s miiees ‘Three Months Ended June 30, ‘Six Months Ended June 30, 2009 2008 % Change 2009 2008, %6 Change Revenue Strategic Marketing Services S$ M5 $ 881 (64) % S 1614 $ 1651 23) % ‘Customer Relationship Management 303 368 (78) % 504 nS (16.9) %
Slide 5: Revenue growth by segment (three months)
MDC(K)PARTNERS Customer Specialized Weighted Relationship Communication Average Services Management Services Total Acquisition Growth, 3 2 ' = Foreign Exchange Growth Total 6.4% -17.8% -30.9% -14.1%
Slide 6: Revenue growth by segment (six months)
MDC(K)PARTNERS Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth = a z s Foreign Exchange Growth Total 2.3% 16.9% -33.3% 12.2%
Slide 7: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (055 mmiiond) ‘Three Months Ended June 30, Six Months Ended June 30, 2009 2008 % Change 2009 2008, % Change EBITDA Strategic Marketing Services $65 $ 152 84% 28.5 m2 7 % margin 20.0% 17.3% W77% 147% ‘Customer Relationship Management 29 42 B15) % 46
Slide 8: Summary of Segment Results — MDC’s Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA @ssinmitons) ‘Three Months Ended June 30, Six Months Ended June 30, 2009 2008 % Chan; 2009 2008 % Change MDC EBITDA Strategic Marketing Services s 7 $ 134 174% S$ m4 $ 27 26.2% Customer Relationship Management 29 41 09.4) % 46 cat G54
Slide 9: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended June 30. ‘Six Months Ended June 30, (US$ im millions) 2009 2008 2009 2008 MDC EBITDA $175 $17.0 $28.8 278 Capital Expenditures a3) a) @1) (8.6) Cash Taxes (05) 6) (4) (0.9) Cash Interest, net and other (29) G9) (5.6) (62) Amouns and percenages may not
Slide 10: Summary Cash Flow Data
MDC(X)PARTNERS Summary Cash Flow Data ‘Six Months Ended June 30, (USS in millions) 2009 2008 Cash flows provided by continuing operating activities S217 $22.6 Discontinued operations (03) os Effect of exchange rate changes on cash and cash equivalents $0.1 (60.2) Amounts and percemages may not foot
Slide 11: Liquidity Profile
10 MDC(K)PARTNERS Liquidity Profile Available Liquidity at June 30, 2009 (USS iamitions Commitment Under Facility 185.0 Revolver 119 Term Loan A 600 Delayed Draw Term Loan B 700 119 Letters of Credit 44 Funds Available Under Facility S$ 387 Available Cash 525 Liquidity S912
Slide 12: Temporal Put Obligations and Impact on EBITDA
MDC(K)PARTNERS Temporal Put Obligations and Impact on EBITDA Estimated Put Impact at June 30, 2009 ‘Payment Consideration Incremental (C55 inmstins Cash Stock Total EBITDA in Period 2009 $6.8 $0.5 973 $16 2010 09 ol 10 a4 2011 1d 05 16 as 2012 40 09 49 20 Thereafter 42 14 15.6 14 Total $27.0 $3.4 $3
Slide 13: Earnout Obligations
12 Earnout Obligations (USS in mittions) 2009 2010 2011 MDC(K)PARTNERS Estimated Earnout Impact at June 30, 2009 Payment Consideration Cash Stock Total $3.1 $0.0 $3.1 40.5 11.5 52.0 0.1 0.0 0.1 $43.8 $11.5 $55.2
Slide 14: 2009 Financial Outlook
13 MDC(X)PARTNERS 2009 Financial Outlook Original Revised Implied 2009 2009 ‘Year over Year Guidance Guidance Growth Revenue $590 - $605 million MDC's Share of EBITDA $63 - $65 million Free Cash Flow $34-$36 million ‘Note: See appendix for defitins of non-GAAP measures.
Slide 15: Appendix
Appendix MDC(K)PARTNERS
Slide 16: Definition of Non-GAAP Measures
15 - 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 - Organic Growth: Organic revenue growth is a non-GAAP measure t