Stagwell Inc. (NASDAQ: STGW) Reports Results For The Three And Nine Months Ended September 30, 2021

News provided by

Stagwell Inc.

Nov 03, 2021, 07:00 ET

Third Quarter GAAP Revenue growth of 104.6%

Third Quarter Pro Forma Organic Net Revenue growth of 22.8%, 27.9% excluding Advocacy

Third Quarter Net Loss attributable to Stagwell was $2.1 million

Third Quarter Pro Forma Adjusted EBITDA of $100 million

Company Raises Full Year Pro Forma Adjusted EBITDA outlook

REPORTED THIRD QUARTER & YTD HIGHLIGHTS:

  • GAAP revenue of $466.6 million in the third quarter versus $228.1 million in the prior year period, an increase of 104.6%; and $857.4 million in the nine months ended September 30, 2021 versus $575.0 million in the prior year period, an increase of 49.1%.
  • Net revenue of $409.1 million in the third quarter versus $152.9 million in the prior year period, an increase of 167.6%; and $749.2 million in the nine months ended September 30, 2021 versus $434.1 million in the prior year period, an increase of 72.6%.
  • Net loss attributable to Stagwell Inc. common shareholders of $2.1 million in the third quarter of 2021 versus net income of $17.8 million in the prior year period; and income of $14.1 million in the nine months ended September 30, 2021 versus $34.1 million in the prior year period.
  • Adjusted EBITDA of $87.5 million in the third quarter versus $37.1 million in the prior year period, an increase of 135.8%; and $150.1 million in the nine months ended September 30, 2021 versus $79.0 million in the prior year period, an increase of 90.0%.

PRO FORMA REPORTED THIRD QUARTER & YTD STAGWELL INC. HIGHLIGHTS:

  • Pro Forma GAAP revenue of $568.3 million in the third quarter versus $511.5 million in the prior year period, an increase of 11.1%; and $1,612.4 million in the nine months ended September 30, 2021 versus $1,445.8 million in the prior year period, an increase of 11.5%.
  • Pro Forma net revenue of $498.1 million in the third quarter versus $397.8 million in the prior year period, an increase of 25.2%; and $1,407.1 million in the nine months ended September 30, 2021 versus $1,185.4 million in the prior year period, an increase of 18.7%.
  • Pro Forma organic net revenue increased 22.8% in the third quarter and 15.6% for the nine months ended September 30, 2021.
  • Pro Forma adjusted EBITDA for the three months ended September 30, 2021 was $100.3 million versus $89.3 million in the prior year period, an increase of 12.4%. Pro forma adjusted EBITDA Margin was 20.1%, compared to 22.4% in the prior year period. Excluding the impact of the advocacy business, adjusted EBITDA margins would have been 20.1% in the third quarter of 2021 and 19.3% the third quarter of 2020.
  • Pro Forma adjusted EBITDA for the nine months ended September 30, 2021 was $275.3 million versus $205.9 million in the prior year period, an increase of 33.7%. Adjusted EBITDA Margin was 19.6%, compared to 17.4% in the prior year period.
  • Net New Business wins totaled $63.7 million in the third quarter.

NEW YORK, Nov. 3, 2021 /CNW/ -- (NASDAQ: STGW) – Stagwell Inc. ("Stagwell") today announced financial results for the three and nine months ended September 30, 2021.

"Stagwell's third quarter results make one thing very clear: the combination is working. We delivered pro forma organic net revenue growth of 23%, a pro forma adjusted EBITDA margin over 20%, and are pleased to raise our full year adjusted EBITDA guidance on the basis of our results to date," said Mark Penn, Chairman and Chief Executive Officer of Stagwell. "Our growth this quarter was driven by double-digit, pro forma net revenue growth across nearly all our client offerings, including digital transformation, communications, media and data analytics. On a year-over-year basis excluding the advocacy business, pro forma organic net revenue grew 28%. With net new business of $64 million, this is a strong first quarter as a newly combined company."

Frank Lanuto, Chief Financial Officer, commented: "The Company reported strong third quarter pro forma results with GAAP revenue of $568 million, net revenue of $498 million and Adjusted EBITDA of $100 million. Organic pro forma net revenue growth of 23% for the quarter, as well as growth from 2019 of 14%, are evidence of the Company's recovery from the pandemic and transition to a new phase of overall growth."

Third Quarter and Year-to-Date 2021 Pro Forma Financial Results

Pro Forma net revenue for the third quarter of 2021 was $498.1 million versus $397.8 million for the third quarter of 2020, an increase of 25.2%.

Pro Forma organic net revenue increased 22.8%, and foreign exchange and acquisitions, net of dispositions, had a positive impact of 0.7% and 1.6%, respectively. Organic net revenue increased primarily due to a continuation of the recovery in spending by clients begun in the first quarter. 

Net New Business wins in the third quarter of 2021 totaled $63.7 million.

Pro Forma adjusted EBITDA for the third quarter of 2021 was $100.3 million versus $89.3 million for the third quarter of 2020, an increase of 12.4%, primarily driven by strong revenue growth. Pro Forma adjusted EBITDA margin in the third quarter of 2021 was 20.1%, down from 22.4% compared to the same period in 2020. Excluding the impact of the advocacy business, adjusted EBITDA margins would have been 20.1% for the third quarter of 2021 and 19.3% for the third quarter of 2020.

Pro Forma net revenue for the first nine months of 2021 was $1,407.1 million versus $1,185.4 million in the prior year period.

Pro Forma organic net revenue for the nine months ended 2021 increased by 15.6% and foreign exchange and acquisitions, net of dispositions, had a positive impact of 1.3% and 1.8%, respectively.

Pro Forma adjusted EBITDA for the first nine months of 2021 was $275.3 million versus $205.9 million in the first nine months of 2020, an increase of 33.7%. This led to an Adjusted EBITDA Margin of 19.6% versus 17.4% in prior year period.

Financial Outlook

2021 financial guidance is as follows:

  • Revenue for 2021, on a pro forma basis giving effect to the combination as if it was completed on January 1, 2021, is estimated to be $2.150 to $2.180 billion, including approximately $755 million for legacy MDC for the seven-month period ended July 31, 2021.
  • Adjusted EBITDA for 2021, on a pro forma basis giving effect to the combination as if it was completed on January 1, 2021, is estimated to be $370 to $380 million, including approximately $124 million for legacy MDC for the seven-month period ended July 31, 2021.
  • Guidance assumes no impact from foreign exchange or acquisitions or dispositions.

* The Company has excluded a quantitative reconciliation with respect to the Company's 2021 guidance under the "unreasonable efforts" exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" below for additional information.

Conference Call

Management will host a video webcast and conference call on Wednesday, November 3, 2021, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and nine months ended September 30, 2021.  The video webcast will be accessible at https://kvgo.com/corporate-services/stagwell-group-earnings-call-q3. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the conference call.

A recording of the conference call will be accessible one hour after the call and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 10,000+ specialists in 20+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.  

Basis of Presentation

The acquisition of MDC Partners (MDC) by Stagwell Marketing Group (SMG) was completed on August 2, 2021. The results of MDC are included within the Statement of Operations for the period beginning on the date of the acquisition through the end of the respective period presented and the results of SMG are included for the entire period presented.

Non-GAAP Financial Measures

In addition to its reported results, Stagwell Inc has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) 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. Such non-GAAP financial measures include the following:

Pro Forma Results: The Pro Forma amounts presented for each period were prepared by combining the historical standalone statements of operations for each of legacy MDC and SMG. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition would have been had the combination actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. The Company has excluded a quantitative reconciliation of adjusted Pro Forma EBITDA to net income under the "unreasonable efforts" exception in Item 10(e)(1)(i)(B) of Regulation S-K.

(1) Organic Revenue: "Organic revenue growth" and "organic revenue decline" refer to the positive or negative results, respectively, of subtracting both the foreign exchange and acquisition (disposition) components from total revenue growth. The acquisition (disposition) component is calculated by aggregating prior period revenue for any acquired businesses, less the prior period revenue of any businesses that were disposed of during the current period. The organic revenue growth (decline) component reflects the constant currency impact of (a) the change in revenue of the partner firms that the Company has held throughout each of the comparable periods presented, and (b) "non-GAAP acquisitions (dispositions), net". Non-GAAP acquisitions (dispositions), net consists of (i) for acquisitions during the current year, the revenue effect from such acquisition as if the acquisition had been owned during the equivalent period in the prior year and (ii) for acquisitions during the previous year, the revenue effect from such acquisitions as if they had been owned during that entire year (or same period as the current reportable period), taking into account their respective pre-acquisition revenues for the applicable periods, and (iii) for dispositions, the revenue effect from such disposition as if they had been disposed of during the equivalent period in the prior year.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: Adjusted EBITDA is defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Financial Guidance:  The Company provides guidance on a non-GAAP basis as it cannot predict certain elements which are included in reported GAAP results.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

This press release contains forward-looking statements. Statements in this press release that are not historical facts, including without limitation the information under the heading "Financial Outlook" and statements about the Company's beliefs and expectations, earnings (loss) guidance, recent business and economic trends, potential acquisitions, and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Words such as "estimates", "expects", "contemplates", "will", "anticipates", "projects", "plans", "intends", "believes", "forecasts", "may", "should", and variations of such words or similar expressions are intended to identify 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 international, national and regional unfavorable economic conditions that could affect the Company or its clients, including as a result of the novel coronavirus pandemic ("COVID-19");
  • the effects of the outbreak of COVID-19, including the measures to reduce its spread, and the impact on the economy and demand for our services, which may precipitate or exacerbate other risks and uncertainties;
  • an inability to realize expected benefits of the redomiciliation of the Company from the federal jurisdiction of Canada to the State of Delaware (the "Redomiciliation") and the subsequent combination of the Company's business with the business of the subsidiaries of Stagwell Media LP ("Stagwell") that own and operate a portfolio of marketing services companies (the "Business Combination" and, together with the Redomiciliation, the "Transactions");
  • adverse tax consequences in connection with the Transactions for the Company, its operations and its shareholders, that may differ from the expectations of the Company, including that future changes in tax law, potential increases to corporate tax rates in the United States and disagreements with the tax authorities on the Company's determination of value and computations of its attributes may result in increased tax costs;
  • the occurrence of material Canadian federal income tax (including material "emigration tax") as a result of the Transactions;
  • the impact of uncertainty associated with the Transactions on the Company's businesses;
  • direct or indirect costs associated with the Transactions, which could be greater than expected;
  • risks associated with severe effects of international, national and regional economic conditions;
  • the Company's ability to attract new clients and retain existing clients;
  • reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
  • financial failure of the Company's clients;
  • the Company's ability to retain and attract key employees;
  • the Company's ability to achieve the full amount of its stated cost saving initiatives;
  • the Company's implementation of strategic initiatives;
  • 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 redeemable noncontrolling interests and deferred acquisition consideration;
  • the successful completion and integration of acquisitions which complement and expand the Company's business capabilities; and
  • foreign currency fluctuations.

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in Exhibit 99.2 to our Current Report on Form 8-K, filed with the Securities and Exchange Commission (the "SEC") on August 10, 2021, and accessible on the SEC's website at www.sec.gov., under the caption "Risk Factors," and in the Company's other SEC filings.

SCHEDULE 1

STAGWELL INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(US$ in 000s, Except per Share Amounts)


Three Months Ended
September 30,

Nine Months Ended
September 30,

2021

2020

2021

2020

Revenue

$

466,634

$

228,097

$

857,436

$

574,970

Operating Expenses






Cost of services

324,782

149,011

558,856

373,064

Office and general expenses

121,770

42,666

226,720

127,181

Depreciation and amortization

24,790

9,974

46,122

29,848

Impairment and other losses

14,926

—

14,926

—

486,268

201,651

846,624

530,093

Operating income (loss)

(19,634)

26,446

10,812

44,877

Other Income (expenses):






Interest expense, net

(11,912)

(1,778)

(15,197)

(4,655)

Foreign exchange, net

(893)

(856)

(1,955)

794

Other, net

45,621

263

46,806

948

32,816

(2,371)

29,654

(2,913)

Income before income taxes and equity in earnings of non-consolidated affiliates

13,182

24,075

40,466

41,964

Income tax expense

5,183

2,618

9,205

3,211

Income before equity in earnings of non-consolidated affiliates

7,999

21,457

31,261

38,753

Equity in losses (income) of non-consolidated affiliates

(76)

(35)

(75)

7

Net income

7,923

21,422

31,186

38,760

Net income attributable to the noncontrolling interest

(9,994)

(3,614)

(10,987)

(4,636)

Net income (loss) attributable to Stagwell Inc.

(2,071)

17,808

20,199

34,124

Net income allocated to convertible preference shares

—

—

(6,113)

—

Net income (loss) attributable to Stagwell Inc. common shareholders

$

(2,071)

$

17,808

$

14,086

$

34,124

Income (loss) Per Common Share:






Basic








Net income (loss) attributable to Stagwell Inc. common shareholders

$

(0.03)

N/A



$

0.27

N/A

Diluted






Net income (loss) attributable to Stagwell Inc. common shareholders

$

0.02

N/A

$

0.11

N/A

Weighted Average Number of Common Shares Outstanding:






Basic

76,105,807

N/A

76,105,807

N/A

Diluted

231,042,044

N/A

197,217,241

N/A

SCHEDULE 2

STAGWELL INC.

UNAUDITED PRO FORMA COMPONENTS OF NET REVENUE CHANGE

(US$ in 000s, except percentages)




Components of Change




Change

Three Months
Ended
September 30,
2020

Foreign
Currency

Net
Acquisitions
(Divestitures)

Organic


Total Change

Three Months
Ended
September 30,
2021

Organic

Total






Integrated Agencies Network

$

250,459

$

2,759

$

5,652

$

66,452

$

74,863

$

325,322

26.5

%

29.9

%

Media Network

84,856

(1,438)

—

27,679

26,241

111,097

32.6

%

30.9

%

Communications Network

57,408

293

—

(3,509)

(3,216)

54,192

(6.1)

%

(5.6)

%

All Other

5,118

1,343

805

173

2,321

7,439

3.4

%

45.3

%

$

397,841

$

2,957

$

6,457

$

90,795

$

100,209

$

498,050

22.8

%

25.2

%



Components of Change




Change

Nine Months
Ended
September 30,
2020

Foreign
Currency

Net
Acquisitions
(Divestitures)

Organic

Total Change

Nine Months
Ended
September 30,
2021

Organic

Total






Integrated Agencies Network

$

755,530

$

10,837

$

20,604

$

145,141

$

176,582

$

932,112

19.2

%

23.4

%

Media Network

264,997

(1,911)

—

34,869

32,958

297,955

13.2

%

12.4

%

Communications Network

149,265

1,122

—

3,664

4,786

154,051

2.5

%

3.2

%

All Other

15,597

4,920

805

1,666

7,391

22,988

10.7

%

47.4

%

$

1,185,389

$

14,968

$

21,409

$

185,340

$

221,717

$

1,407,106

15.6

%

18.7

%

Note: Actuals may not foot due to rounding.

SCHEDULE 3

STAGWELL INC.

UNAUDITED PRO FORMA SEGMENT OPERATING RESULTS

(US$ in 000s, except percentages)

For the Three Months Ended September 30, 2021



Integrated
Agencies
Network

Media
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$

325,322

$

111,097

$

54,192

$

7,439

$

—

$

498,050

Billable Costs

43,119

5,336

21,847

(6)

—

70,296

Revenue

368,441

116,433

76,039

7,433

—

568,346












Billable Costs

$

43,119

$

5,336

$

21,847

$

(6)

$

—

$

70,296

Staff costs

211,186

74,187

34,978

5,212

8,845

334,408

Administrative costs

30,739

14,354

6,479

2,104

(567)

53,109

Other direct costs

3,948

5,524

789

(222)

163

10,202

Adjusted EBITDA (1)

79,449

17,032

11,946

345

(8,441)

100,331












Stock-based compensation

32,565

2,629

15,445

16

3,184

53,839

Depreciation and amortization

15,799

6,738

2,174

492

1,555

26,758

Deferred acquisition consideration

3,422

—

136

—

—

3,558

Impairment and other losses

81

14,846

—

—

—

14,927

Other items, net (1)

1,085

571

(349)

—

21,578

22,885

Operating income

$

26,497

$

(7,752)

$

(5,460)

$

(163)

$

(34,758)

$

(21,636)

























(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA, Other items, net and Pro Forma adjusted EBITDA.


Note: Actuals may not foot due to rounding.

SCHEDULE 4

STAGWELL INC.

UNAUDITED PRO FORMA SEGMENT OPERATING RESULTS

(US$ in 000s, except percentages)

For the Nine Months Ended September 30, 2021



Integrated
Agencies
Network

Media
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$

932,112

$

297,955

$

154,051

$

22,988

$

—

$

1,407,106

Billable Costs

120,967

24,715

59,611

—

—

205,293

Revenue

1,053,079

322,670

213,662

22,988

—

1,612,399












Billable Costs

$

120,967

$

24,715

$

59,611

$

—

$

—

$

205,293

Staff costs

613,052

204,873

100,962

15,644

25,889

960,420

Administrative costs

93,738

41,972

16,575

8,649

82

161,016

Other direct costs

2,819

7,520

(2)

14

6

10,357

Adjusted EBITDA (1)

222,503

43,590

36,516

(1,319)

(25,977)

275,313












Stock-based compensation

35,740

2,712

15,687

16

4,368

58,523

Depreciation and amortization

33,648

18,096

5,586

2,013

4,927

64,270

Deferred acquisition consideration

26,839

102

(52)

—

—

26,889

Impairment and other losses

956

14,846

—

—

—

15,802

Other items, net (1)

4,700

3,081

(93)

—

32,050

39,738

Operating income 

$

120,620

$

4,753

$

15,388

$

(3,348)

$

(67,322)

$

70,091













(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA, Other items, net and Pro Forma adjusted EBITDA.

Note: Actuals may not foot due to rounding.

SCHEDULE 5

STAGWELL INC.

UNAUDITED PRO FORMA SEGMENT OPERATING RESULTS

(US$ in 000s, except percentages)

For the Three Months Ended September 30, 2020



Integrated
Agencies
Network

Media
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$

250,459

$

84,856

$

57,408

$

5,118

$

—

$

397,841

Billable Costs

32,321

10,778

70,581

—

—

113,680

Revenue

282,780

95,634

127,989

5,118

—

511,521












Billable Costs

$

32,321

$

10,778

$

70,581

$

—

$

—

$

113,680

Staff costs

153,409

54,489

29,549

5,348

6,540

249,335

Administrative costs

32,324

15,342

4,331

3,077

2,712

57,786

Other direct costs

456

3,789

200

(3,025)

—

1,420

Adjusted EBITDA (1)

64,270

11,236

23,328

(282)

(9,252)

89,300












Stock-based compensation

2,389

—

17

—

1,421

3,827

Depreciation and amortization

10,367

5,681

1,737

815

708

19,308

Deferred acquisition consideration

3,661

—

(710)

—

—

2,951

Impairment and other losses

158

—

—

—

—

158

Other items, net (1)

(579)

27

(35)

—

6,207

5,620

Operating income

$

48,274

$

5,528

$

22,319

$

(1,097)

$

(17,588)

$

57,436













(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA, Other items, net and Pro Forma adjusted EBITDA.

Note: Actuals may not foot due to rounding.

SCHEDULE 6

STAGWELL INC.

UNAUDITED PRO FORMA SEGMENT OPERATING RESULTS

(US$ in 000s, except percentages)

For the Nine Months Ended September 30, 2020



Integrated
Agencies
Network

Media
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$

755,530

$

264,997

$

149,265

$

15,597

$

—

$

1,185,389

Billable Costs

105,560

28,329

126,535

—

—

260,424

Revenue

861,090

293,326

275,800

15,597

—

1,445,813












Billable Costs

$

105,560

$

28,329

$

126,535

$

—

$

—

$

260,424

Staff costs

496,451

188,542

85,224

16,208

16,124

802,549

Administrative costs

96,264

44,522

13,646

8,708

6,055

169,195

Other direct costs

5,333

8,962

1,912

(8,423)

—

7,784

Adjusted EBITDA (1)

157,482

22,971

48,483

(896)

(22,179)

205,861












Stock-based compensation

5,859

—

72

—

1,839

7,770

Depreciation and amortization

30,251

17,105

5,101

2,696

2,133

57,286

Deferred acquisition consideration

1,302

375

108

—

—

1,785

Impairment and other losses

17,994

35

—

—

1,129

19,158

Other items, net (1)

148

1,746

(11)

1

12,470

14,354

Operating income

$

101,928

$

3,710

$

43,213

$

(3,593)

$

(39,750)

$

105,508













(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA, Other items, net and Pro Forma adjusted EBITDA.

Note: Actuals may not foot due to rounding.

SCHEDULE 7

STAGWELL INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(US$ in 000s)


September 30,
2021

December 31,
2020

ASSETS


Current Assets


Cash and cash equivalents

$

115,489

$

92,457

Accounts receivable, net

669,612

225,733

Expenditures billable to clients

37,101

11,063

Other current assets

78,884

36,433

Total Current Assets

901,086

365,686

Fixed assets, net

118,526

35,614

Right-of-use lease assets - operating leases

334,867

57,752

Goodwill

1,619,272

351,725

Other intangible assets, net

945,081

186,035

Other assets

24,789

17,043

Total Assets

$

3,943,621

$

1,013,855

LIABILITIES, RNCI, AND SHAREHOLDERS' DEFICIT


Current Liabilities


Accounts payable

$

277,385

$

147,826

Accruals and other liabilities

371,289

90,557

Advance billings

286,790

66,418

Current portion of lease liabilities - operating leases

74,162

19,579

Current portion of deferred acquisition consideration

60,951

12,579

Total Current Liabilities

1,070,577

336,959

Long-term debt

1,265,747

198,024

Long-term portion of deferred acquisition consideration

14,754

5,268

Long-term lease liabilities - operating leases

328,048

52,606

Deferred tax liabilities, net

134,288

16,050

Other liabilities

59,190

5,801

Total Liabilities

2,872,604

614,708

Redeemable Noncontrolling Interests

29,787

604

Commitments, Contingencies and Guarantees


Shareholder's Equity:


Convertible preference shares, 123,849 and 0 authorized, issued and outstanding at September 30, 2021 and December 31, 2020, respectively

209,980

—

Member's capital

—

358,756

Common stock and other paid-in capital

169,616

—

Accumulated deficit

(6,153)

—

Accumulated other comprehensive income

12,537

—

Stagwell Inc. Shareholders' Equity

385,980

358,756

Noncontrolling interests

655,250

39,787

Total Shareholders' Equity

1,041,230

398,543

Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity

$

3,943,621

$

1,013,855

SCHEDULE 8

STAGWELL INC.

UNAUDITED SUMMARY CASH FLOW DATA

(US$ in 000s)


Nine Months Ended
September 30,

2021

2020

Net cash provided by operating activities

$

29,384

$

93,184

Net cash provided by (used in) investing activities

153,987

(16,421)

Net cash used in financing activities

(164,442)

(43,700)

Effect of exchange rate changes on cash and cash equivalents

4,103

555

Net increase in cash and cash equivalents

$

23,032

$

33,618

Cash and cash equivalents at beginning of period

92,457

63,860

Cash and cash equivalents at end of period

$

115,489

$

97,478

Supplemental disclosures:


Cash income taxes paid

$

42,346

$

(3,618)

Cash interest paid

$

16,232

$

7,288

Note: Actuals may not foot due to rounding.

SOURCE Stagwell Inc.

Michaela Pewarski, Stagwell Inc., (646) 429-1812, [email protected], http://www.stagwellglobal.com

Related Links

http://www.stagwellglobal.com

Organization Profile

Stagwell Inc.