Slide 1: Management Presentation First Quarter Results
Management Presentation April 25, 2013 First Quarter Results DRAFT
Slide 2: Forward-looking statements
This presentation, including our “ 2013 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: Summary
SUMMARY • 1Q 2013 was the strongest first quarter in company history • We continue to win incremental share of wallet and market share as our clients see the strong business results and trust more of their marketing and growth efforts to us • 1Q new business wins were a record high and our pipeline
Slide 4: Key Financial Highlights
Key Financial Highlights Strong financial results and record new business wins lead to increased 2013 financial guidance • Organic revenue growth of 10.1% for Q1 2013 • Q1 2013 revenue increased 13.6% to $267.0 million • Q1 2013 EBITDA increased 262.7% to $30.4 million • EBITDA margin expanded 780 b
Slide 5: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS Note: Actuals may not foot due to rounding (US$ in millions, except percentages) 2013 2012 Revenue 267.0$ 235.2$ 13.6 % Operating Expenses Cost of services sold 179.0 176.0 1.7 % Office and general expenses 68.0 59.9 13.6 % Depreciation and amortization 9.6 10.0 (3.
Slide 6: Summary of Segment Results - Revenue
SUMMARY OF SEGMENT RESULTS - REVENUE • Strategic Marketing Services delivered 11.7% organic growth marking the fourth consecutive quarter of double digit organic growth • Strong new business wins in 2012 and 1Q 2013 led to continued market share gains Note: Actuals may not foot due to rounding (US$
Slide 7: First Quarter 2013 Revenue Growth by Segment
FIRST QUARTER 2013 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing Average Services Services Total Organic Growth 11.7% 6.6% 10.1% Acquisition Growth 3.2% 4.7% 3.7% Foreign Exchange Growth -0.1% -0.5% -0.2% Total 14.8% 10.8% 13.6%
Slide 8: First Quarter Revenue by Client Sector
FIRST QUARTER REVENUE BY CLIENT SECTOR Note: Actuals may not foot due to rounding Q1 2013 Q1 2012 • Our Business Continues to Strengthen in Diversification Across Sectors As More Clients Turn To Us To Deliver Transformational Business Results for Them • We Continue To Expand Our Portfolio of Service
Slide 9: 4x Outperformance Relative to Peers
4x Outperformance Relative to Peers Over Last 5 Years Note: *Peers include Omnicom, Interpublic, and Publicis *Due to timing of earnings WPP and Havas are not included in 1 Q13 ORGANIC GROWTH 1Q13 +10.1% MDC Partners vs. Peers Trailing 12 Month Organic Revenue -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0
Slide 10: Summary of Segment Results - EBITDA
SUMMARY OF SEGMENT RESULTS - EBITDA Note: Actuals may not foot due to rounding • We remain focused on sustainable profitable growth by optimizing the conversion of incremental revenues to EBITDA and Free Cash Flow (US$ in millions, except percentages) 2013 2012 EBITDA Strategic Marketing Services 29
Slide 11: Free Cash Flow
FREE CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2013 2012 Cash Flow Provided by (used in) Continuing Operating Activities ($32.0) $13.3 Distributions 3.1 0.0 Interest Expense, net 12.0 10.4 Changes in Working Capital 47.8 (17.3) Changes in Non-Current Assets & Liabilities
Slide 12: Liquidity
LIQUIDITY (US$ in millions) Commitment Under Facility 225.0$ Drawn - Undrawn Letters of Credit 5.0 Funds Available Under Facility 220.0$ Total Cash 71.4 Liquidity 291.4$ Available Liquidity at March 31, 2013
Slide 13: 2013 Financial Outlook
2013 FINANCIAL OUTLOOK • Our strong first quarter financial results and record new business wins lead us to increase financial guidance for 2013 Revised Initial Implied 2013 2013 Year over Year Guidance Guidance Change Revenue $1.145 - $1.170 billion $1.125 - $1.150 billion +6.9% to +9.3% EBITDA $14
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 $102.2 million exercisable pursuant to termination of employment or death. Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2013 1.5 0.4 1.9 1.5 2014 1.5 0.5 2.0 0.2 2015 3.8 0.6 4.4 1.7 2016 2.7 0.2 2.9 0.0 Th
Slide 16: Summary of Cash Flow
SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2013 2012 Cash flows provided by (used in) continuing operating activities ($32.0) $13.3 Discontinued operations (1.0) (0.7) Net cash provided by operating activities ($33.0) $12.5 Cash flows provided by (used in) cont
Slide 17: Definition of Non-GAAP Measures
DEFINITION OF NON - GAAP MEASURES Note: A reconciliation of Non - GAAP to US GAAP reported results has been provided by the Company in the tables included in the earnings release issued on April 25, 2013. • EBITDA: EBITDA is a non - GAAP measure, that represents operating profit plus depreciation an