investor newsletter

INVESTOR
NEWSLETTER
HIGHLIGHTS FROM OUR PARTNER NETWORK
KEY FINANCIAL HIGHLIGHTS
CORPORATE ACTIVITY
FACT SHEET
2015
72andSunny/Carl’s Jr.
I’M CONSTANTLY HUNTING
INTERESTING IDEAS,
MY JOB IS TO STAY
CONNECTED WITH WHERE
THE TALENT ARE REALLY
INNOVATING.
Jason Goodman
Founder & CEO, Albion
2015 Q1 INVESTOR NEWSLETTER
1
HIGHLIGHTS FROM OUR
PARTNER NETWORK
RECALLING LIFE AT THE DAWN OF
THE INTERNET TO SAY HELLO TO
THE FUTURE
kbs+, BMW
To introduce the world to the BMW i3, kbs+
created the spot, “Newfangled Idea”. The core
idea behind the ad was a 1994 conversation
between former Today Show hosts Katie Couric
and Bryant Gumbel in which they couldn’t wrap
their heads around the newfound idea of the
“internet.” Fast-forward 21 years later, Katie and
Bryant are equally stumped by the concept of
a car built in a wind-powered factory, with no
engine under the hood.
To kick off the campaign, the spot premiered
on the Today Show, prior to the Super Bowl. A
fully-integrated strategy was executed across
all of BMW’s channels including a pre-Super
Bowl YouTube launch, digital shorts, additional
video content, social channel paid campaigns, a
hidden “email egg” campaign and an instagram
campaign, among others.
In the first two weeks of the campaign, the spot
received over 30 million online video views, with
17 million on YouTube alone. It earned 950 million
media impressions, over 42,000 Twitter mentions
with an audience reach of 228 million. BMWUSA.
com saw 1.6 million visits, it was the #3 most
engaged with Super Bowl spot and it received
“Top Spot” rankings across various publication
lists including Advertising Age, Fast Company,
Rolling Stone, Variety and Entertainment Tonight,
among many others.
USING SOCIAL MEDIA TO SNUFF
OUT SMOKING
TURNING SNEAKERS INTO
STREET ART FOR SELF-EXPRESSION
72andSunny and Assembly, The American Legacy
Foundation/truth
Anomaly, Converse
Truth wanted to connect with today’s social
media-savvy generation of 15-21 year olds and
challenge them to eradicate smoking in their
lifetime. Led by data insights collected from a
social experiment and MDC’s Assembly, truth’s
media agency of record, 72andSunny enlisted
popular YouTube and Vine influencers to drive the
message home. The result was “Left Swipe Dat”,
an original song and music video starring the
influencers rejecting, or “swiping left” on images
of people holding cigarettes. The video, which
aired during the Grammy Awards, plays off of
today’s popular dating app concept of “swiping
left” - meaning you’re not interested in the
person - to shine light on the fact that smoking is
unattractive.
To sustain momentum on launch night,
72andSunny established a social media war
room to interact, engage and disseminate the
message online. Overall, the campaign secured
more than 79,000 replies, retweets, mentions and
favorites on Twitter, and more than 2.5 million on
Facebook.
#LeftSwipeDat was the #1 Worldwide Twitter
Trending Topic twice during its TV debut, beating
out the official hashtag of The Grammys during
the actual airing of the show. The music video has
more than 29 million total views and has earned
over 1.6 billion media impressions to date.
Since their 1917 debut, Converse’s Chuck
Taylor All-Stars have served as a canvas for
self-expression. When Converse wanted to
celebrate its signature line of Chucks and reclaim
their iconic status, Anomaly developed a global
campaign called “Made By You” centered around
the insight that the Chuck Taylor is the only
sneaker defined by the people who wear them.
From around the globe, the company curated
over 400 sneakers from a diverse collection of
wearers, from everyday consumers to pop culture
icons such as Andy Warhol, Patti Smith, Kate
Lanphear and Glenn O’Brien. In the company’s
most expensive brand initiative to date, Anomaly
and Converse turned streets into exhibition
spaces in 41 cities across 5 continents. The multichannel campaign was both global and “hyperlocal,” stretching across online and social media,
with launches in New York, London, Beijing and
Mexico City.
The campaign also included a Google Cardboard
virtual reality experience, which allowed
consumers to step into the shoes of their famous
owners, and see the world through their eyes in a
360-degree video, as well as through mobile app
and online recreations. Across social channels,
each portrait and film was credited to the owner
in front of Converse’s 45+ million followers. In
turn, fans and followers continued to interact,
engage and amplify the message. People even
started creating their own portraits.
Just as grassroots as it was global, the campaign
succeeded in capturing the creative spirit of local
communities and subcultures across the world,
showcasing the deep affection consumers have
for Chucks and fueling inspiration for continued
creative expression around the globe.
2015 Q1 INVESTOR NEWSLETTER
2
HIGHLIGHTS FROM OUR
PARTNER NETWORK
Q1 NEW BUSINESS
These select account wins
solidified $27.9 million of
net annualized revenue:
Adidas
72andSunny
Unilever (Axe)
72andSunny
Highmark Health
Doner
Smashburger
mono
Elevate Financial
Assembly
Major League Baseball
Anomaly
BSH Home Appliances
Allison+Partners
Vênsette
HL Group
American Legacy Foundation
Assembly
International Tennis
Hall of Fame
Doner
Betsafe
CP+B Scandinavia
Keds
kbs+
General Mills (Totino’s)
72andSunny
Fairview Health Services
Yamamoto
Thomas Cook
Albion
* Includes select wins in
the public domain.
CP+B/PokerStars
AWARDS
CP+B was recognized three times
on Advertising Age’s ranking of the
Top 15 Campaigns of the 21st
century - more than any other
agency on the list
At Graphis’ Advertising Annual
2015 Awards, Doner took home
a platinum and silver for its work
with NGK Spark Plugs and ADC
(respectively) while CP+B won silver
for its work with Hotels.com
Colle+McVoy won a Creative Media
Award for its launch of Caribou
Coffee’s new Real Inspiration blend
Concentric won Gold at the Pharma
Choice Awards for its work with
Novartis
72andSunny and Anomaly were
named to Advertising Age’s Annual
Agency A-List and were named
as Creativity’s Innovators of the
Year, while CP+B was named as a
Standout Agency
72andSunny was named to Fast
Company’s list of the World’s 50
Most Innovative Companies
kbs+’s Distortion of Sound was a
winner in the Documentary category
at The One Show’s One Screen
Festival
At the Holmes Report’s Sabre
Awards, Allison+Partners was
awarded Most Innovative Agency
Path Worldwide was shortlisted
as Best Breakthrough Agency of
2015
Yamamoto won a GDUSA
American Package Design Award
for its work with KING
Doner won a Cleveland ADDY for
its work with Bellfaire
72andSunny’s Rebekah Jefferis and
Anomaly’s Eric Segal were named to
Advertising Age’s 40 Under 40 list
CP+B’s iPad ordering app for
Domino’s as well as its .GIFYs
awards, Colle+McVoy’s TapServer,
and Hello Design’s Art of the Cap
for Speedo were recognized in
Communication Arts’ Interactive
Annual competition
Anomaly’s Alex Holder was named
to Business Insider’s list of the
30 Most Creative Women in
Advertising
Hunter PR was ranked as #2 in
O’Dwyer’s Top Food & Beverage
PR Firms
Allison+Partners was named as
PRWeek’s Midsize Agency of the
Year while Exponent PR received
an honorable mention for Small
Agency of the Year
TEAM won eight awards at the
ADDY Awards
At the Business Finance Awards,
Albion’s Craig Wildman was named
Financial Director of the Year
At the Shorty Awards, 72andSunny
and CP+B won Best in Hospitality
and Best in Retail & E-Commerce,
respectively, while kbs+, Doner
and CP+B all received honorable
mentions
CP+B’s voice-ordering campaign for
Domino’s won at the R3 Integration
40 Awards
Anomaly/AB InBev
2015 Q1 INVESTOR NEWSLETTER
3
mono/Sperry
THERE ARE TWO
INGREDIENTS FOR A
SUCCESSFUL AGENCY:
KILLER WORK. NICE
PEOPLE.
Chuck Porter
Chairman, CP+B
2015 Q1 INVESTOR NEWSLETTER
4
Q1 2015 KEY FINANCIAL
HIGHLIGHTS
Organic Revenue Growth (1) of 7.4% in Q1
Net New Business $27.9 Million in Q1
Reaffirming 2015 Guidance*
On Track to Deliver on all Financial Targets
2015 Guidance*
2014 Actuals
2015 Guidance
Implied Year
Over Year Change
$1.22 billion
$1.300 to $1.330 billion
+6.5% to +8.5%
$179.4 million
$195 to $205 million
+8.7% to +14.3%
14.7%
15.0% to 15.4%
+35 to +75 basis points
$98.8 million
$109 to $119 million
+10.3% to +20.4%
Revenue
Adusted EBITDA (2)
Implied EBITDA Margin
Adjusted EBITDA Available for General Capital Purposes (3)
Summary Financial Statement Data
12 months ended
December 31, 2014
3 months ended
March 31, 2015
$1,223.5
$302.2
+10.8%
+7.4%
Adjusted EBITDA (2)
$179.4
$31.2
Net Income (Loss)
($24.1)
($32.1)
$98.8
$10.3
Cash and Cash Equivalents
$113.3
$17.6
Total Long-Term Debt
$743.1
$762.3
Closing Price (NASDAQ: MDCA)
$22.72
$28.35
49.5
49.8
$ in Millions, except per share data
Total Revenue
Organic Revenue Growth (1)
Operating Data
Adjusted EBITDA Available for General Capital Purposes (3)
Balance Sheet Data
Other Data
Wtd. Average Diluted Shares Outstanding
Q1 Conference Call Replay
A recording of the conference call will be
available until 9:00 am (ET) on May 12,
2015, by dialing 1-412-317-0088 or toll free
1-877-344-7529 (passcode: 10064651) or
by visiting www.mdc-partners.com.
(1) Organic revenue growth is a non-GAAP measure that refers to growth in revenues from sources other than acquisition or foreign exchange impacts.
(2) Adjusted EBITDA is a non-GAAP measure, and represents operating profit plus depreciation and amortization, stock-based compensation, acquisition deal
costs, deferred acquisition consideration adjustments, profit distributions from affiliates, and other non-recurring items.
(3) Adjusted EBITDA Available for General Capital Purposes is a non-GAAP measure, and represents funds available for repayment of debt, acquisitions, deferred
acquisition consideration, dividends, and other general corporate initiatives.
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 27, 2015. Figures exclude discontinued opperations.
* As of April 27, 2015.
2015 Q1 INVESTOR NEWSLETTER
Agendy / Year
5
Q1 2015 KEY FINANCIAL
HIGHLIGHTS
MDC Partners vs. Peers
Trailing 12 Month Organic Revenue Growth
25%
20%
15%
10%
5%
-0%
-5%
-10%
1Q
2Q
3Q
4Q
2008
1Q
2Q
2009
3Q
4Q
1Q
2Q
3Q
4Q
2010
1Q
2Q
3Q
2011
4Q
1Q
2Q
3Q
4Q
2012
MDC Partners (ex Accent)
2Q
3Q
2013
(1)
MDC Partners
1Q
4Q
1Q
2014
2Q
3Q
4Q
1Q
2015
Peers include Omnicom, Interpublic, WPP, Havas and Publicis
Peers
(2)
Pro Forma for planned divestiture of ACCENT
MDC Global Network
UNITED STATES
CANADA
UK/EUROPE
Allison+Partners
Anomaly
Attention
Assembly
Bruce Mau Design
Civilian
Colle+McVoy
Concentric
CP+B
Doner
Exponent PR
Hello Design
HL Group
Hunter PR
kbs+
Kingsdale
Kwittken
Laird+Partners
LBN
Luntz Global
mono Advertising
Northstar
Redscout
Relevent
Hud:sun
Rumble Fox
Sloane & Company
Source Marketing
72andSunny
TEAM
The Media Kitchen
Trade X
VITRO
Varick Media Management
Yamamoto
6 Degrees
Andretti Sports Marketing
Anomaly
Attention
BOOM! Marketing
Bruce Mau Design
BMIR
Gale43
kbs+
Kenna
Kwittken
Kingsdale
Northstar
Tatt2 Media
Union
Veritas
72andSunny
Albion
Allison+Partners
Anomaly
CP+B
Doner
kbs+
Kwittken
Northstar
Path Worldwide
Redscout
2015 Q1 INVESTOR NEWSLETTER
ASIA
Allison+Partners
Anomaly
CP+B
kbs+
SOUTH AMERICA
CP+B
6
72andSunny/Carlsberg
ENTREPRENEURS
ARE INHERENTLY
OPTIMISTIC, THEY
BELIEVE THINGS THAT
OTHER PEOPLE CAN’T
SEE.
Matt Jarvis
Chief Strategy Officer, 72andSunny
2015 Q1 INVESTOR NEWSLETTER
7
VITRO/ASICS
MDC PARTNERS
CORPORATE ACTIVITY
UPCOMING EVENTS
RECENT EVENTS
03/11/2015
02/24/2015
05/08/2015
06/18/2015
Goldman Sachs TMT
Leveraged Finance Conference
New York, NY
JP Morgan High Yield &
Leveraged Finance Conference
Miami, FL
Jefferies Media IR Summit
New York, NY
Telsey Advisory Group
Ad Trends Conference
New York, NY
03/11/2015
01/07/2015
Piper Jaffray Technology,
Media & Telecommunications
Conference
New York, NY
Citi Internet, Media &
Telecommunications
Conference
Las Vegas, NV
03/10/2015
Deutsche Bank Media, Internet
& Telecom Conference
Palm Beach, FL
Additional information about MDC investor events
is available at www.mdc-partners.com.
05/13/2015
Jefferies Global Technology,
Media & Telecom Conference
Miami, FL
06/22/2015
Stifel Baltusrol Summit
Springfield, NJ
05/27/2015
06/24/2015
Nomura Media Summit:
Global Agency Day
New York, NY
Bernstein Future of
Media Summit
Boston, MA
06/04/2015
MDC Annual Meeting
of Shareholders
New York, NY
Doner/ADT
2015 Q1 INVESTOR NEWSLETTER
8
MDC PARTNERS
CORPORATE ACTIVITY
MDC CARES SPOTLIGHT
In the first quarter, MDC Partners proudly
welcomed the recipients of the 2014 MDC
Partners/Harlem RBI Scholarships to the
MDC Innovation Centre to celebrate the great
accomplishments of these young leaders. The
scholarships celebrate our shared values of
Teamwork, Leadership, Integrity and Effort and
recognize the great talent of Harlem RBI students
in the classroom, in the community and on the
playing field. This year’s recipients were selected
by a team of ten MDC staff members who
reviewed and ranked applications, interviewed
participants and spearheaded a campaign to
raise additional dollars through staff donations
to ensure that all applicants received a financial
contribution to their post-secondary studies. The
2015 scholarship process is now well underway
and this year’s recipients will be announced this
summer.
In an effort to better engage MDC employees in
the company’s charitable giving efforts, MDC has
created a Social Impact Task Force. The Task
Force will allow employees to participate in the
grantmaking process by assessing applications
for funding from charitable organizations and
by helping decide which organizations MDC
supports, in line with the company’s strategic
giving objectives.
And finally, MDC Partners was honored with
Year Up’s “Corporate Champion Award”,
recognizing outstanding commitment, dedication
and service to urban young adults. February
marked the graduation of ten Year Up interns, and
the beginning of a new cohort of interns placed
at MDC agencies. MDC Partners is proud to be
fulfilling the Clinton Global Initiative Commitment
to Action made at the 2014 CGI America
conference which will see 25 young people facing
barriers to employment placed in internships in
the MDC network.
For more information about MDC’s ongoing
community and philanthropic initiatives, please
visit the MDC Cares Blog at www.mdccares.com.
kbs+/BMW
2015 Q1 INVESTOR NEWSLETTER
9
MDC PARTNERS
FACT SHEET
A PARTNER COMPANY
NOT A PARENT COMPANY
MDC Partners is one of the leading and fastestgrowing global Business Transformation
Organizations. We thrive by empowering the
most talented, entrepreneurial and innovative
thought leaders to drive competitive advantage
and business growth for clients. Our agency
partners leverage technology, marketing
communications, data analytics, insights
and strategic consulting solutions to drive
meaningful, measureable returns on marketing
and communications investments for over 1,500
clients worldwide.
Anomaly/Converse
2015 Q1 INVESTOR NEWSLETTER
1010
Global Leadership
MDC PARTNERS
FACT SHEET
Miles S. Nadal
Chairman & CEO
David Doft
CFO
Bob Kantor
Chief Marketing & Business Development Officer
Partners
NOTABLE AWARDS
6 Degrees
72andSunny
4A’s O’TOOLE
Awards
mono
Small Agency of the Year
(2012)
Advertising Age
72andSunny
Agency of the Year (2012)
72andSunny
Most Viral Agency of the
Year (2014)
Anomaly
Most Viral Super Bowl Ad
(2014)
CP+B
Agency of the Decade (2010)
Adweek
EFFIES
72andSunny
Gold (2014) (Activision)
72andSunny
Silver (2014) (Samsung)
Anomaly
Silver (2014) (Bud Canada)
72andSunny
Grand Prix, Gold (2013)
(Activision)
CP+B
Gold (2013) (Kraft)
CP+B
Gold (2013) (Amex)
CP+B
Gold (2012) (Baby Carrots)
EMMYS
72andSunny
Agency of the Year (2013)
CP+B
Late Night with
Jimmy Fallon (2014)
kbs+
Project Isaac
Awards (2014), 2 Gold
Anomaly
Avec Eric (2011)
Cannes Lions
72andSunny
Gold (2014) (Samsung)
Anomaly
Gold (2014) (Dick’s Sporting
Goods)
MDC Various
Five Grand Prix (2012)
Creativity A-List
72andSunny
Innovators of the Year (2014)
72andSunny
Agency of the Year (2013)
The Holmes Report
Allison+Partners
Grand North American
Agency of the Year (2014)
Kwittken
Small Agency of the Year
(2014)
Veritas
Canadian Consultancy of
the Year (2014)
Hunter PR
Consumer Agency of the
Year (2014)
Jay Chiat Awards
for Strategic Excellence
72andSunny
Grand Prix (2013)
Medical Market & Media
Magazine
Albion
Allison+Partners
Andretti Sports
Marketing
Kingsdale Shareholder
Services
Kwittken
Laird+Partners
LBN
Luntz Global
Anomaly
MDC Media Partners
Concentric
Top 100 Agencies (2014)
Assembly
mono
Attention
ONE Show
BOOM! Marketing
Northstar Research
Partners
Anomaly
Gold (2014) (Budweiser)
Bruce Mau Design
72andSunny
Gold (2014) (Samsung)
Bryan Mills Iradesso
Civilian
kbs+
Automobile Advertising of
the Year (2013) (BMW)
Colle+McVoy
Ogilvy Awards
CP+B
CP+B
Grand Prix (2011) (Domino’s)
Doner
PRSA
Gale43
Exponent PR
Industry Campaign of the
Year (Healthcare) (2014)
(Medtronic)
Hello Design
Exponent
Industry Campaign of the
Year (B2B) (2014) (DuPont)
PRWeek
Concentric
Exponent PR
HL Group
Hud:sun Media
Hunter PR
kbs+
Kenna
Allison+Partners
Technology Campaign of
the Year (2013) (Dropbox)
Path Worldwide
Real Interactive
Redscout
Relevent
Rumble Fox
Sloane & Company
Source Marketing
TEAM
The Media Kitchen
Trade X
Union
Varick Media
Management
Veritas
VITRO
Yamamoto
Contacts
Sloane & Company
Crisis Agency of the Year
(2012)
Investor Inquiries
Matt Chesler, CFA
VP, Investor Relations
[email protected]
646-412-6877
The Delaney Report
Doner
Agency of the Year (2013)
Press Inquiries
Alexandra Delanghe
SVP, Corporate Communications
[email protected]
646-429-1845
Follow us on:
2015 Q1 INVESTOR NEWSLETTER
Twitter
Instagram
LinkedIn
Company Securities
MDC Partners’ Class A Shares are
publically traded on NASDAQ under
the symbol “MDCA” and on the
Toronto Stock Exchange under the
symbol “MDZ.A”
Additional Information
Additional information is available on
our corporate website at
www.mdc-partners.com
1111
Forward Looking Statements & Other Information
This presentation, including our “2015 Guidance Outlook”, contains forwardlooking statements. The Company’s representatives may also make forwardlooking statements orally from time to time. Statements in this presentation
that are not historical facts, including statements about the Company’s
beliefs and expectations, earnings guidance, 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:
·risks associated with the SEC’s ongoing investigation of the Company, as
disclosed in more detail in the Company’s most recent Quarterly Report on
Form 10-Q for the period ended March 31, 2015;
·risks associated with severe effects of international, national and regional
economic downturn;
·the Company’s ability to attract new clients and retain existing clients;
·the spending patterns and financial success of the Company’s clients;
·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 rights
and deferred acquisition consideration;
·the successful completion and integration of acquisitions which compliment
and expand the Company’s business capabilities; and
· foreign currency fluctuations.
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.
2015 Q1 INVESTOR NEWSLETTER