Slide 1: Management Presentation – First Quarter 2008 Results
Management Presentation May 1, 2008 First Quarter 2008 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 “2008 Financial Outlook”, comtains forward-looking statements. The Company's representatives may also make forward- looking statements orally from time to time. Statements in this presentation that are a
Slide 3: Summary of Consolidated Results
MDC(K)PARTNERS Summary of Consolidated Results (WSS im lione) Three Months Ended March 31, 2008 2007 % Change Revenue $ 1433) $ 1181 214 % Operating Expenses Cost of services sold 976 770 268 % SG&A 358 33.2 78 % D&A 10.1 58 736% Operating Income (0.2) 2a (108.9) % margin NM 17% Other income (expens
Slide 4: Summary of Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (US$ in millions) Three Months Ended March 31, 2008 2007 % Change Revenue Strategic Marketing Services $ 780 $ 706 10.5% Customer Relationship Management 34.7 23.6 471 % Specialized Communication Services 30.7 23.9 28.2 % Amounts and percenages may
Slide 5: First Quarter 2008 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS First Quarter 2008 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship ‘Communication Average Services ‘Management Services Total Acquisition Growth 6.0% zs 2.0% 4.0% Foreign Exchange Growth 1.8% 8.4% 2.8%
Slide 6: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (US$ ia milions) Three Months Ended March 31, 2008 2007 % Change EBITDA Strategic Marketing Services $ 85 $ 101 (16.2) % margin 10.9% 14.3% Customer Relationship Management 31 21 49.38 % margin 8.9% 8.7% Specialized Communication Services 35 17 99.1
Slide 7: Summary of Segment Results — MDC's Share of EBITDA
Summary of Segment Results — MDC’s Share of EBITDA MDC(K)PARTNERS (US$ m millions) Three Months Ended March 31, 2008 2007 % Change MDC EBITDA Strategic Marketing Services s a8 64 221% Customer Relationship Management 3.0 20 48.0 % Specialized Communication Services 24 12) 77.9 % Marketing Communicat
Slide 8: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended March 31, (USS in multions) 2008 2007 ‘MDC EBITDA $9.8 $5.5 Capital Expenditures 42) G5) Cash Taxes (03) (0.6) Cash Interest Qn G3)
Slide 9: Liquidity Profile
MDC(K)PARTNERS Liquidity Profile Available Liquidity at March 31, 2008 (U38 in millon) Commitment Under Facility $1850 Revolver 18.6 Term Loan A 60.0 Delayed Draw Term Loan B 515 130.1 Letters of Credit Funds Available Under Facility $ 499 Available Cash 29 Liquidity $528
Slide 10: Put Obligations and Impact on EBITDA
MDC(K)PARTNERS mporal Put Obligations and Impact on EBITDA Estimated Put Impact at March 31, 2008 Payment Consideration Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2008 $8.0 $0.3 $8.3 $2.6 2009 2.0 09 29 08 2010 24.6 56 30.2 33 2011 20 42 32 15 2012 - 2015 144 24 16.8 45 Total $5
Slide 11: 2008 Financial Outlook
10 MDC(K)PARTNERS 2008 Financial Outlook Revenue MDC's Share of EBITDA Free Cash Flow ‘Note: See appendix for definitions of non-GAAP measures.
Slide 12: Appendix
Appendix MDC(K)PARTNERS
Slide 13: Definition of Non-GAAP Measures
12 MDC(K)PARTNERS Definition of Non-GAAP Measures - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation. A reconciliation of “EBITDA” to the US GAAP reported results of operations has been provided by the Company in t