Attached files
| file | filename |
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| 8-K - Stagwell Inc | v163128_8k.htm |
| EX-99.2 - Stagwell Inc | v163128_ex99-2.htm |
PRESS
RELEASE
FOR IMMEDIATE
RELEASE
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MDC
Partners Inc.
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CONTACT:
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Donna
Granato
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950
Third Avenue, 5th
Floor
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VP,
Finance & Corporate Development
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New
York, NY 10022
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646-429-1809
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dgranato@mdc-partners.com
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MDC
PARTNERS INC. REPORTS PRELIMINARY RESULTS FOR THE
THREE
AND NINE MONTHS ENDED SEPTEMBER 30, 2009
NEW YORK, NY
(October 19, 2009) – MDC
Partners Inc. (“MDC Partners” or the “Company”) today announced its preliminary
financial results for the three and nine months ended September 30, 2009, based
on preliminary financial results and subject to the final closing of its
books.
PRELIMINARY THIRD QUARTER
RESULTS:
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·
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Revenues
decreased to $134.6 million vs. $142.1 million in Q3 2008, a decrease of
5.3%
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·
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Organic
revenues declined 4.4% in Q3
2009
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·
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MDC
EBITDA increased to $17.7 million vs. $16.1 million in Q3 2008, an
increase of 9.9%
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·
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Free
Cash Flow increased to $13.8 million vs. $12.1 million in Q3 2008, an
increase of 14.1%
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·
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EBITDA
margin increased to 14.8% vs. 12.3% in Q3 2008, an increase of 250 basis
points
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PRELIMINARY
YEAR-TO-DATE RESULTS:
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·
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Revenues
decreased to $396.2 million vs. $439.9 million in the first nine months of
2008, a decrease of 9.9%
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·
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Organic
revenues declined 7.9% in the first nine months of
2009
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·
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MDC
EBITDA increased to $46.5 million vs. $43.9 million in the first nine
months of 2008, an increase of
5.9%
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·
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Free
Cash Flow increased to $34.5 million vs. $23.7 million in the first nine
months of 2008, an increase of
45.6%
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·
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EBITDA
margin increased to 12.6% vs. 11.5% in the first nine months of 2008, an
increase of 110 basis points
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The
Company also reconfirmed its previously-issued financial guidance for 2009 of
revenue equal to $545-$575 million, MDC EBITDA of $63-$65 million and Free Cash
Flow of $37-$39 million.
Final
Earnings Release and Conference Call
Management
will issue its full earnings release for the period on Thursday, October 29,
2009 after the market close and will host a conference call on Friday, October
30, at 8:30 a.m. (EST) to discuss our final results.
About
MDC Partners Inc.
MDC
Partners is a progressive Marketing and Communications Network, championing the
most innovative entrepreneurial talent. MDC Partners provides strategic
solutions and services to multinational clients in North America, Europe and
Latin America. Our philosophy emphasizes the utilization of Strategy and High
Value Creativity to drive growth and measurable impact for our clients. “MDC
Partners is The Place Where Great Talent Lives.” The company’s Class A shares
are publicly traded on the NASDAQ under the symbol “MDCA” and on the Toronto
Stock Exchange under the symbol “MDZ.A”.
Non-GAAP
Financial Measures
In
addition to its reported results, MDC Partners has included in this earnings
release certain financial results that the Securities and Exchange Commission
defines as "non-GAAP financial measures." Management believes that
such non-GAAP financial measures, when read in conjunction with the Company's
reported results, can provide useful supplemental information for investors
analyzing period to period comparisons of the Company's results. These non-GAAP
financial measures relate to: (1) presenting MDC Partners’ share of EBITDA and
EBITDA margin (as defined) for the three and nine months ended September 30,
2009 and 2008; (2) presenting Free Cash Flow (as defined) for the three and nine
months ended September 30, 2009 and 2008; and (3) presenting organic revenues
for the three and nine months ended September 30, 2009. Included in
this earnings release are tables reconciling MDC Partners’ reported results to
arrive at these non-GAAP financial measures.
This
press release contains forward-looking statements. The Company’s representatives
may also make forward-looking statements orally from time to time. Statements in
this press release that are not historical facts, including statements about the
Company’s beliefs and expectations, preliminary financial results for the three
and nine months ended September 30, 2009, recent business and economic trends,
potential acquisitions, estimates of amounts for deferred acquisition
consideration and “put” option rights, constitute forward-looking
statements. These statements are based on current plans, estimates
and projections, and are subject to change based on a number of factors,
including those outlined in this section. Forward-looking statements
speak only as of the date they are made, and the Company undertakes no
obligation to update publicly any of them in light of new information or future
events, if any.
Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially from those
contained in any forward-looking statements. Such risk factors include, but are
not limited to, the following:
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·
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risks associated with severe
effects of national and regional economic
downturn;
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·
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the Company’s ability to
attract new clients and retain existing
clients;
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·
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the financial success of the
Company’s clients;
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·
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the Company’s ability to
retain and attract key
employees;
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·
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the Company’s ability to
remain in compliance with its debt agreements and the Company’s ability to
finance its contingent payment obligations when due and payable, including
but not limited to those relating to “put” option right and deferred
acquisition consideration;
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·
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the successful completion and
integration of acquisitions which complement and expand the Company’s
business capabilities; and
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·
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foreign currency
fluctuations.
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The
Company’s business strategy includes ongoing efforts to engage in material
acquisitions of ownership interests in entities in the marketing communications
services industry. The Company intends to finance these acquisitions
by using available cash from operations and through incurrence of bridge or
other debt financing, either of which may increase the Company’s leverage
ratios, or by issuing equity, which may have a dilutive impact on existing
shareholders proportionate ownership. At any given time the Company
may be engaged in a number of discussions that may result in one or more
material acquisitions. These opportunities require confidentiality
and may involve negotiations that require quick responses by the
Company. Although there is uncertainty that any of these discussions
will result in definitive agreements or the completion of any transactions, the
announcement of any such transaction may lead to increased volatility in the
trading price of the Company’s securities.
Investors
should carefully consider these risk factors and the additional risk factors
outlined in more detail in the Annual Report on Form 10-K under the caption
“Risk Factors” and in the Company’s other SEC filings.
The
Company’s financial statements for the third fiscal quarter of 2009 are not
finalized until they are filed in its Quarterly Report on Form 10-Q for the
third fiscal quarter of 2009. The Company is required to consider all
available information through the finalization of its financial statements and
the possible impact of such information on its financial condition and results
of operations for the reporting period, including the impact of such information
on the complex and subjective judgments and estimates the Company made in
preparing certain of the preliminary information included in this Press
Release. Subsequent information or events may lead to material
differences between the preliminary results of operations described in this
Press Release and the results of operations that will be described in the
Company’s subsequent earnings release and between such subsequent earnings
release and the results of operations described in the Company’s Quarterly
Report on Form 10-Q for the third fiscal quarter of 2009. Those
differences may be adverse. Readers should consider this possibility
in reviewing the earnings information in this Press Release.