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

Published: Oct. 20, 2021 at 7:46 AM CDT|Updated: Nov. 3, 2021 at 6:00 AM CDT

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.

Stagwell is the challenger holding company built to transform marketing. (PRNewsfoto/MDC...
Stagwell is the challenger holding company built to transform marketing. (PRNewsfoto/MDC Partners Inc.,Stagwell Inc.)

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