Slide 1: Management Presentation Third Quarter 2014 Results
October 29, 2014 Management Presentation Third Quarter 2014 Results
Slide 2: Forward Looking Statements & Other Information
2 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “ 2014 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: Third Quarter 2014 Summary
3 • On track for strong 2014 and foundation in place for even better 2015 • Industry - leading organic revenue growth continues • Successful conversion of increasingly large and global opportunities leading to record new business pace and increased visibility on revenue • Profitability in the quarte
Slide 4: Third Quarter 2014 Financial Highlights
4 • Industry - leading organic revenue growth of 8.2% • Revenue increased 13.2% to $326.9 million from $288.7 million • Net loss attributable to MDC Partners improved by $16.3 million to ($4.9) million from ($21.2) million • Adjusted EBITDA increased 7.9% to $42.5 million from $39.4 million • Adjust
Slide 5: Year-to-Date 2014 Financial Highlights
5 • Industry - leading organic revenue growth of 7.7% • Revenue increased 11.3% to $937.2 million from $841.8 million • Net Income (loss) attributable to MDC Partners increased $57.2 million to $2.7 million from a loss of ($54.5) million • Adjusted EBITDA increased 11.2% to $127.7 million from $114.
Slide 6: Consolidated Revenue and Earnings
6 Note: Actuals may not foot due to rounding CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) 2014 2013 2014 2013 Revenue 326.9$ 288.7$ 13.2 % 937.2$ 841.8$ 11.3 % Operating Expenses Cost of services sold 216.5 189.2 14.4 % 608.4 556.7 9.3 % Office and general expenses 77.8 88
Slide 7: Summary of Segment Results - Revenue
7 • Q3 2014 revenue of $326.9 million represents 13.2% YoY growth • Broad strength across all disciplines and geographies, notably Design, CRM, Insights, Strategic Communications & PR, Advertising , Media and International SUMMARY OF SEGMENT RESULTS - REVENUE Note: Actuals may not foot due to roundi
Slide 8: Organic Revenue Growth by Segment
8 ORGANIC REVENUE GROWTH BY SEGMENT Note: Actuals may not foot due to rounding • Strategic Marketing Services continues to deliver strong organic growth, increasing +8.8% in the quarter and + 10.6% year - to - date • Performance Marketing Services improved to +6.6% and is +1.0% year - to - date Stra
Slide 9: Third Quarter Revenue by Client Industry
9 Q3 2014 Mix Year - over - Year Growth by Category • Auto, Financials, Retail and Healthcare are our fastest growing sectors • Our top 10 clients declined to 25.5% of revenue in Q3 2014 from 28.6% a year ago, demonstrating the ongoing diversification of the business (largest ~4%) THIRD QUARTER REVE
Slide 10: Organic Growth Highlights: Sustained Market Share Gains
10 ORGANIC GROWTH HIGHLIGHTS SUSTAINED MARKET SHARE GAINS Note: Peers include Omnicom, IPG, WPP, Havas and Publicis . WPP and Havas have not yet reported 3 Q 2014 results and therefore are not included in the peer aggregate for the most recent quarter.
Slide 11: Summary of Segment Results - Adjusted EBITDA
11 Note: Actuals may not foot due to rounding • Adjusted EBITDA and margins was affected by the timing of heavy new business activity and other growth initiatives which we expect to pay off in the future SUMMARY OF SEGMENT RESULTS – ADJUSTED EBITDA (US$ in millions, except percentages) 2014 2013 201
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 Q3 2014 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) December 31, 2013 September 30, 2014 Commitment Under Facility $225.0 $225.0 Drawn - - Undrawn Letters of Credit 4.9 4.8 Funds Available Under Facility $220.1 $220.2 Total Cash & Cash Equivalents 102.0 48.9 Liquidity $322.1 $269.1
Slide 14: 2014 Financial Outlook
14 • On pace to deliver on all of our financial objectives for this year, which includes industry leading organic revenue growth, strong EBITDA growth and operating leverage, and solid cash generation 2014 FINANCIAL OUTLOOK Note: See appendix for definitions of non - GAAP measures 2014 2014 2014 Imp
Slide 15: Appendix
15 APPENDIX
Slide 16: Temporal Put Obligations and Impact on EBITDA
16 TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2014 1.3 0.0 1.3 1.0 2015 4.9 0.0 4.9 1.9 2016 4.2 0.0 4.2 0.1 2017 4.8 0.0 4.8 0.9 Thereafter 5.6 1.5 7.1 0.8 Total $20.8 $1.5 $22.3 $4.7 Effective Multiple 4.7x Estimated Put Impact at
Slide 17: Summary of Cash Flow
17 Note: Actuals may not foot due to rounding SUMMARY OF CASH FLOW Note: Actuals may not foot due to rounding (US$ in millions) 2014 2013 Cash flows provided by continuing operating activities $42.1 $112.8 Discontinued operations (0.3) (7.5) Net cash provided by operating activities $41.8 $105.4 Cas
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