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

Rhea-AI Summary

Stagwell reported a 104.6% increase in GAAP revenue for Q3, reaching $466.6 million, compared to $228.1 million last year. The company recorded a net loss of $2.1 million, a decline from a net income of $17.8 million in the same period last year. Adjusted EBITDA rose 135.8% to $87.5 million. Despite the loss, Stagwell raised its full-year adjusted EBITDA outlook, reflecting strong pro forma organic net revenue growth of 22.8%. Total new business wins amounted to $63.7 million in Q3.

Positive

• GAAP revenue increased by 104.6%, reaching $466.6 million.
• Adjusted EBITDA rose 135.8% to $87.5 million.
• Full-year adjusted EBITDA outlook raised based on Q3 results.
• Pro forma organic net revenue growth of 22.8% in Q3.

Negative

• Net loss of $2.1 million compared to $17.8 million net income last year.

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 /PRNewswire/ -- (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.

 

 

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SOURCE Stagwell Inc.

FAQ

What were Stagwell's Q3 results for 2021?

Stagwell reported a GAAP revenue of $466.6 million, a net loss of $2.1 million, and an adjusted EBITDA of $87.5 million.

What is the stock symbol for Stagwell?

The stock symbol for Stagwell is STGW.

How much did Stagwell raise its adjusted EBITDA outlook?

Stagwell raised its full-year adjusted EBITDA outlook based on positive Q3 results.

What was Stagwell's organic net revenue growth in Q3?

Stagwell achieved a pro forma organic net revenue growth of 22.8% in Q3.

How much in new business did Stagwell win in Q3?

Stagwell recorded net new business wins totaling $63.7 million in Q3 2021.