Slide 1: Management Presentation Second Quarter 2015 Results
August 6, 2015 Management Presentation Second Quarter 2015 Results
Slide 2: Forward Looking Statements & Other Information
2 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “ 2015 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 histor
Slide 3: Second Quarter 2015 Summary
3 • Solid quarter - results tracking in - line with expectations on all key metrics • Industry leading organic revenue growth • Year over year declines in Adjusted EBITDA due to new business recognition timing, as expected • $27.3 million of net annualized new business revenue • Ongoing progress acr
Slide 4: Second Quarter 2015 Financial Highlights
4 • Industry - leading organic revenue growth of 8.3% • Revenue increased 12.4% to $336.6 million from $299.4 million • Net income attributable to MDC Partners of $29.6 million versus $16.5 million a year ago • Adjusted EBITDA of $47.5 million versus $48.9 million a year ago • Adjusted EBITDA margin
Slide 5: Year-to-Date Financial Highlights
5 • Industry - leading organic revenue growth of 7.8% • Revenue increased 11.3% to $638.8 million from $574.2 million • Net loss attributable to MDC Partners of ($2.5) million versus income of $7.6 million a year ago • Adjusted EBITDA of $78.6 million versus $84.7 million a year ago • Adjusted EBITD
Slide 6: Consolidated Revenue and Earnings
6 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2015 2014 2015 2014 Revenue 336.6$ 299.4$ 12.4 % 638.8$ 574.2$ 11.3 % Operating Expenses Cost of services sold 225.0 188.9 19.1 % 435.5 370.3 17.6 % Office and general expenses 53.1 7
Slide 7: Summary of Segment Results - Revenue
7 • Q2 2015 revenue of $336.6 million represents 12.4% YoY growth • Strength across disciplines and geographies including Design , Advertising, Media, Technology & Data Science, and International, offset by weakness in Experiential SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due
Slide 8: Organic Revenue Growth by Segment
8 ORGANIC REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding • Solid overall organic growth of +8.3% against a +9.9% comp in Q2 2014 (ex Accent) • Accelerating growth in SMS partially offset by modest decline in PMS Strategic Performance Weighted Strategic Performance Weighted Mark
Slide 9: Second Quarter Revenue by Client Industry
9 Q2 2015 Mix Year - over - Year Growth by Category • Fastest growing sectors: Consumer Products, Healthcare, Technology • Our top 10 clients declined to 23.3% of revenue in Q2 2015 from 24.5% a year ago, demonstrating the ongoing diversification of the business (largest ~4%) SECOND QUARTER REVENUE
Slide 10: Organic Growth Highlights Sustained Market Share Gains
10 ORGANIC GROWTH HIGHLIGHTS SUSTAINED MARKET SHARE GAINS Notes: (1) MDC organic growth excludes Accent in all periods. (2) Peers include Omnicom, IPG, WPP, Havas and Publicis . WPP and Havas have not yet reported Q2 2015 results and therefore consensus estimates for organic growth rates are used in
Slide 11: Summary of Segment Results – Adjusted EBITDA
11 Note: Actuals may not foot due to rounding • Q2 Adjusted EBITDA down on a year over year basis, as expected, due in part to timing related to revenue recognition for recent new business SUMMARY OF SEGMENT RESULTS – ADJUSTED EBITDA * Other non - recurring items includes the perquisite reimbursemen
Slide 12: Adjusted EBITDA Available for General Capital Purposes
12 Note: Actuals may not foot due to rounding ADJUSTED EBITDA AVAILABLE FOR GENERAL CAPITAL PURPOSES (1) Adjusted EBITDA is a non GAAP measure. See schedules 2 through 5 of the Q2 2015 press release for a reconciliation of Net Income (loss) to Adjusted EBITDA. (2) Capital Expenditures, net represent
Slide 13: Available Liquidity
13 AVAILABLE LIQUIDITY* (US$ in millions) June 30, 2015 December 31, 2014 Commitment Under Facility $325.0 $325.0 Drawn - Undrawn Letters of Credit 5.1 4.8 Funds Available Under Facility $319.9 $320.2 Total Cash & Cash Equivalents 34.9 113.3 Liquidity $354.8 $433.5 Note: Subject to available borrowi
Slide 14: 2015 Financial Outlook
14 2015 FINANCIAL OUTLOOK Note: See appendix for definitions of non - GAAP measures Revenue Adjusted EBITDA Adjusted EBITDA Available for General Capital Purposes Implied Adjusted EBITDA Margin $1.22 billion $179.4 million $98.8 million 14.7% $1.300 to $1.330 billion $195 to $205 million $109 to $11
Slide 15: Appendix
15 APPENDIX
Slide 16: Temporal Put Obligations and Impact on EBITDA
16 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2015 2.4 0.0 2.4 1.1 2016 1.9 0.1 2.0 0.0 2017 2.8 0.0 2.8 1.4 2018 1.7 0.0 1.7 0.0 Thereafter 6.8 0.0 6.8 1.4 Total $15.6 $0.1 $15.7 $3.9 Effective Multiple 4.0x Estimated Put Impact at
Slide 17: Summary of Cash Flow
17 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2015 2014 Cash flows provided by continuing operating activities $69.5 $25.3 Discontinued operations (1.0) 0.9 Net cash provided by operating activities $68.5 $26.1 Cash fl
Slide 18: Definition of Non-GAAP Measures
18 Note: Actuals may not foot due to rounding DEFINITION OF NON - GAAP MEASURES Adjusted EBITDA: Adjusted EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjust
Slide 19: MDC Partners contact details
MDC Partners Innovation Centre 745 Fifth Avenue, Floor 19 New York, NY 10151 646 - 429 - 1800 www.mdc - partners.com