MDCA - Earnings call transcript Q1 2018

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Operator

Good day, and welcome to the MDC Partners First Quarter Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. President, and Vice Senior Chesler, Investor Finance. Relations Matt go ahead. Please

Matt Chesler

for I’d Good the you call of like for everyone. MDC first XXXX. taking conference to thank listen to afternoon, quarter to the Partners the time

me and and Chairman David Scott Officer. CEO; Financial today from Chief Joining are Kauffman, MDC Doft,

I’d begin contains non-GAAP and forward-looking remarks, remind all like we Before prepared that you statements financial to our the discussion data. following

statement the statements forward-looking referenced we the in are subject release know, uncertainties, slide SEC further cautionary XX-K As to and in the subsequent and company about included earnings company’s our are all and filings. presentation, detailed Form in

For presentation to your investor an we reference, our website. posted

afternoon’s I’d Chairman and We it And financial slide release our data. and definitions, like over to to Kauffman. of Scott also this presentation the start to non-GAAP refer now you turn call, press explanations to CEO, for and reconciliation

Scott Kauffman

start All this Thank strong everyone. afternoon, has year. The you, business the XXXX for challenging. and Matt, year into prospects the of been coming good were the

QX a and in cutbacks the has of adoption results, spending from Separate impact the rules performance been several to disappointing. past experienced client delays April the Our new noise our some weeks. revenue we’ve recognition, of accounting added number for which of the has over reported and March

to instances, appear rate a addition, of In budgets build, to smaller our in while our new of conversion slower some business. continues also seen than business we’ve pipeline new anticipated. And be

our balance organic revenue target growth agencies the X% of growth. generate no realistic our longer organic over together to to year approximately Taken required of it’s with of amount to X% in hit the the quarter, revenue original first our the expect growth

and just moment. our detail lowering will performance in and We’re, XXXX more guidance, our a therefore, outlook revised provide financial on our David

Our know unacceptable and that. are we results

doing priorities. So unlocking and performance. to our value generation, top are let what tell improve it you operating me about we’re Revenue efficiency

data portfolio into positioning customer enhancing in business offering ramping North expansion serve our platform, the our agencies, opportunity from scaling our team to benefit initiatives of revenue our markets all product our America. development centralized to up successful continuing outside care, digital and their new of Our design and from range health large our and partners

actionable, in First, center, value Zero the amplify MDC analytics year. to at Leveraging the clear spend customer intelligence facing One, we’re strategies biggest proprietary platform the articulation One customer to level insights, only churn. investing data available agencies earlier This & and data launched a ROI a today. a of We’ve on delivers helps reduce strategic value problems consultancy and our to data & incubated solve customer CMOs agency, marketing lifetime increase platform, clients. this Zero portfolio, within tactical and

we’re start in for us. population solid And world, aging of providers including drive the area the across advances care marketing inspire beyond our businesses. business a consumer Combined experiencing using in developed Patients are the health booking way, appointments continue of source an a building health meaningful a very their important technology that and to sector in that an and programs increasingly U.S. experiences biometrics, a and pharmaceutical they’re with going content with is are to amount it’s an marketing care of brands. range with a and the and companies and grow online, capabilities digital foundation health treatment seasoned lifestyles and and an adoption, Providers their content changing from staggering will we seeking and to area. by promote one adding interacting pharmaceutical to disruption, for research on this us efficiencies GDP, technology behavior. Next, to conditions, XX% care to own of wide industry monitoring driven to is be health bolster options new Health almost in healthier relying care for care. generate pill exciting out growth executive

in Year month, another the named Our destinations, And by already and Agency strong broader News Concentric networks, Concentric of this of hospital last across and other the beyond Ad XXXX, pharmaceutical year Met fifth received health. brands with the was has within MDC, working nutritional companies, agency scope we’re experienced honor. time health verticals

in a notably, acquisition of continuing quarter, Most portfolio we platform this to finalized which the attracting of talent organize Instrument, closed April modern X. we’re Next, marketing the and best the industry. on

Partners digital-first In innovation innovation this firm digital equity. change our to firm. the we capabilities are have position, solutions of service and that Instrument ensuring significant of innovative brand in world-class experienced time to the provide competitive family. industry, the and strengthening a data We’re build welcome brand a thrilled and in range MDC to investments is our

help of deep developers One user content that the them organizations designers, brands. experiences Their capabilities XXX it and apart. expertise, lead design brands, team with of technology their best and and at channels. the sets and technologists building back these and with They up of multidisciplinary products, it’s across transform leading strategists, experience digital personalized combination

Creative; Year, of Our with past Agency plan we’ve Leading Anomaly; Global is it scale Assembly; XXandSunny to Year, PR the Firm, of Partners; Concentric. course, to the successfully rest and of decade Media as MDC position the done and the of the Instrument portfolio, Agencies Allison+ with collaborate and just over

at options agencies, agencies we’ll of our cost underperforming and at to in sense it Finally, divest or and any improve consolidate where makes efficiency, all positioning. operating strategic to overall and financial certain improve continue MDC’s functions, centralize look terms ratios

separate the better reporting resources mergers assets, over XX through quarter, more X XX P&Ls of consolidated and us as This past from it divestitures. to offerings either finance, individual delivering of and years, allows in creates of areas as integrated IT we’ve this number for the to leverage or more agency example, an such scaled As HR.

corporate sales on time, are to is critical, and our focused this efforts. to managers at we’re and serve these continue serving think best partners. We at our clients, our that the moving quickly same ability while ensuring We’re improving

as from new value, to firm requires X we adding X year of firms, our in value this While rebalancing. portfolio well portfolio. expect and last for profitable capabilities follows to prior select it as sold And forward. good years, time unrecognized lot managing a on ones. and initiatives dispositions believe continue growing in a and going rebalancing We sometimes time attracting smaller involves some We there’s our

Turning the overall now to environment.

see technologies that strategic well remain and decade. CMOs creativity, to in we very behavior, response that their and thanks in to for positioned, looking new disruption investments help them past in environment, this partners data and are continue our consumer made over We the pervasive In digital the shifts business to transform today’s talent, to marketplace. we’ve strategy,

an clearly work outstanding not financial environment first agencies. or near-term on campaigns disappointing, share in plenty should results operating executed our of we’re by lost growth. we that its that and it see quarter challenges, of are being to opportunity has be While while business our And transforming anyone, for ignored be continues there

Our industry. by pitches offerings evidenced in in many are the competitive into the marketplace, the of invitation our as biggest agencies

and year. helped one like quarter, million been drive of While process $XX the update I’d on MDC during with had new to later nearly won in the which business, improved net slower, touch to the revenue our additional growth has backgrounds agencies pitch respect a promote number Directors years, with initiatives. To that shareholder growth the and a over is best past X implemented of that independent believe firmly We strong we’ve board to renewal able long-term governance. diverse value. create end, corporate of Board

this, In and directors, Director. financials outlook. closing, no frustration practices. to Desirée will newest and make your in committed of remain do Independent so. to my full we the X-member resolute our Every includes non-management financial to well a XXXX call turn fully Desirée walk board our doing Rogers to welcome the need about as company with it’s I’d we is our year Today, as collaborative the great pleasure business we now results. our results-oriented as so great details to corporate And marketing are X strong better. to leader board. strong skills, addition with executive through David and governance share like We and a MDC’s over doubt our to knows

David Doft

Thank you, Scott, and good afternoon.

on accounting and of aspects the recognition rule changed XXX of the new accounting the accordingly certain adoption out the second meaningful The revenue indicated, of has policy. X, As smaller this revenue seasonally accounting revenue ASC new we a impact reported XXXX, financials Scott adopted quarter on our of recognized shifting by year. first into second and standard and half our quarter January

classification was thus, there on led with This change of in in revenue also agent impact profit. recognized some cost of to for addition, a in a direct from principle reduction reduction no third-party and our a corresponding relationships. client In cost to

GAAP standard, EBITDA have million old rules, the adopted you new been words would revenue reconcile we $XXX.X have new would $XX.X in the with reported not adjusted our the had rules If or million. other our been and

Our growth for X% organic organic change, the is the change of unaffected is accounting normalized as the by growth standard. revenue accounting our revenue in

$X recognize However, work time additional revenue could there we for over completed. was separate already in either quarter also first million of XXX, from the ASC not that for under standard

not bottom second if in it revenue will QX quarter, line expense related to right QX. to expect We the of in we booked this the in the all drop most, but recognize so already

we of divested were any that throughout not on incremental the results million one-time XXX professional adoption associated ASC variability indicated, we consolidation, previously year $X quarter quarter through the from the historical adjusted as adoption material addition summer. of expect of rules, initiatives cycle clear, $XXX,XXX Additionally, fees to to LBN, as in the of do the new incremental To to in we severance, was XXXX impact accounting while be full change, basis. in a first first last results rule which and greater year last patterns with included estate real strategic compared in costs related totaling EBITDA

ASC to for under you results, XXX period that our cycled help or will retrospective we press To accounting revenue, been past not applied or restated a adjustments is X And from related or effect impact the and business revenue accounting GAAP basis, the These and a EBITDA investors on the cumulative this underlying to table X go-forward net to in patterns change. attributable change balance not with to no There’s and our why Schedules is our provide income opening Partners the presentation. EBITDA. Prior on table through year the continue present can to on and a impact January evaluate variability an of adjusted our there the operating underlying another standard standards adopted changes, and metrics balance have on be of to will bridge and X, until the impact notice historical and change. is be While historical policies performance our quarterly X starting of component should prior for and of policy our using reminder do we cash expenses, XXXX, no why and basis. no accounting And there’s dollars shareholders, where and disclosures found additional we on loss relative earnings current this relationships quarter adjustment cash the flow. MDC an our accounting method, annual We called adjusted the periods. retained there’s those new importantly, reported periods new in X reconciliation quarterly our Impact the modified Pages contracts. on new client showing guidance. additional The on have release there slide

let’s through impacts. specific Now, the walk

being revenue, revenue These prior of standard revenue arrangements. first the of certain accounted the in on the in the amount reported or gross There to on impact a arrangements later related, clients standard. XXX in therefore, previously first principal, under revenue for compared million as $XXX XXXX pass-through was $XXX.X impact in included out-of-pocket In X.X%. revenue. profit. $X.X applying net change of which and agent. net by net of million In reduced ASC a with were certain our to should instances, year. impact under simply quarter recognition are services the billed corresponding to to And the revenue impact reported is was accounted expense being were shift being revenue The revenue $XX.X longer timing no terms provided, reduction recorded million $XX.X connection billed. for for quarters million during revenue new to as of The accounting remaining and related million of the costs, party third the these from the so is are now but client quarter equal no and

generally the was less is relationships of and time. of retainer the revenue our for effort XXX, more QX proportional over And the on revenue recognized pattern previously, a example, an As to recognition Under basis life contract. straight-line weighted. ASC therefore,

and in of amount excess initial forecast, period to The they required million for went certain amount operations. the amount occurs through Another accounting that our the us million. XXXX-XX, were recognized exceed which a any flow quarter cash Previously, when financing QX which that consideration. from this change so the cash flows payments XXXX to Under requires was as comparable. reclassified flow deferred that estimated this cash ASU The flow all now effect financing activity. standard, consideration for standard reclassify contingent flows quarter for estimation, our requires cash are was new $X.X flow through initially and into $X.X businesses standard of contingent were contingent portion from was are we reclassify that the new classified

mentioned, rate outlook, and Scott our outlook our assumptions risk and on to we’re based terms conversion our about we we overall of those in March the as business year, as the earlier go on convert about the slower cutbacks In quickly tracking what will combination new When XXXX of new business April, a are it make we select into and relationships, how lowering on Unfortunately, spending client trends those and existing of of plans pipeline. client a as based pipeline. our views. not on well

terms growth guidance the expect to as full therefore, In of for are, X% revenue year. updating We our organic we X% revenue, financial follows:

the tougher that the to for be the Given second growth will weighted half year. XXXX, XQ means this rates of comp

for million basis recent dollar foreign roughly as point percentage has the assuming Next, $X X same, sold material cost August and exchange Instrument, favorably not points which of was currency we rates full is XX ASC partially against to to on revenue basis, to XXXX. the is with now points of a The to The $X basis impact growth, when remaining us by adjusted remain shift strength dollars. impact us expect exception the positive from full approximately reflecting so the gave a the certain reduces gross from adoption by worked X.X a net relationships. impact the drag to year in dollar expected revenue to from expense, to contribution compared originally year no net million offset shift to of EBITDA full on by being be the we million of $XX EBITDA of XXX impact This year, as accounting impact LBN, with for revenue months dollar guidance. expected and dispositions adjusted acquisitions reduction months have in X XXX by

basis our are basis we flat approximately XX points margins, of terms adjusting In expansion XX to outlook margin to of expansion. points from

client to approximately incorporates Our not. contracts, certain accounting revised outlook shift net from benefit whereas from prior basis to did related outlook XX points gross the our revenue

revised margins are for therefore excuse clear, outlook our outlook implies So me, year. down the our -- be to revenue underlying

$XX we approximately is of QX and QX in of XXXX. payment payments million in $XX expect second and In $XX of the obligations, our then deferred million million half made strong. terms acquisition-related Liquidity in

We the year. like expect continue a position compared your at and at leverage of to a to with be year-end to positive now last questions. lower revolver to out take in year-end, We’d ratio cash

Operator

Salmon Markets. Dan go question Instructions] will Please ahead. first from of come [Operator Our BMO Capital

Caroline Rehfuss

so, is for years issued the has know guys. outlook still been target particularly, Dan. margin the is a outlook. was And the but the This if I it’s for could line XXXX view? how time expand long-term changed? on that to you ‘XX, in since Hi, for downgraded reasons you Caroline, ‘XX on several target and hoping I

David Doft

Great. Thanks, Caroline.

in of we to for we have to this Overall, structures. cost those can the where agencies. you it’s at range incorporated substantial long that need we to targets, benefit imagine out is short-term might shortfalls is but are has as that look So that sometimes portfolio to year. impact soft of to there which to margins room on when improve address over continue how those the that, order margin guidance have performance revenue, their continuing and on longer-term better few part to tough in of agencies and And we we hard within optimize that businesses, in years, a ultimately, based what’s revenue them believe certain We still it’s it. prior take. cost for reach the And our think target achievable performance put say to next specific

Caroline Rehfuss

Okay. Helpful. Thank you.

David Doft

Thanks.

Operator

next Please Our Jaime Jefferies. Morris from question of ahead. come go will

Jaime Morris

is in us hoping what was I you assumption for year. help could understand try business current that net you. thank the Hi, new the and

David, that year. that you So going mentioned into on think, you assumption make I an the

what get new didn’t the cutbacks materialize to trying of net from existing versus from comes idea clients? part that Just an business of revision

Scott Kauffman

look largest Jaime, of bulk our agencies assessed it based of our some its A business integrated agencies, the part pitches. robustness oftentimes And our of the to largest Scott. you are that the invited these in at came - new net are global on and part, are, if the from the pipeline. projections underperformance,

We robust continue to a see pipeline. very

slowdown finish weren’t as of a crossed had we cases, What we’ve is before, anticipated. the in in said been the initially not what into come line, process. As the pitch budgets we those even lot accounts And some review. anticipating are

pull So we’re of seeing clients. back bit a from softness and

the that with We marketing to clients an effective there to to businesses. advertising expense be Now price, investment as are always their cut. and more look of be an that certain and focused as marketing on clients going are be grow advertising think budget at and to tend

the challenges our how agencies the of think in are the we’re about that them. grappling as some headwinds we and with are so And at industry these looking

Jaime Morris

I in it be And April, other. and your guess, strong is might wondering, I you. just it’s others? versus differing you’re have environment, seems understand anything there I’m to be And out slowdown call reported. Okay, then, than anything what just saying. The one some of relatively particular March or slightly - you and different what where economic sectors just thank peers to in any a

David Doft

us are Jaime, it to with bad really never And the know industry. base versus you’ve of down in enough proxies been consistent the client where times basically where overall our good industry, we’ve trends competitors for enough long times. our ultimately, to comes industry the or large been that exposure overall around they’re

case, that have handful impacted So have us. reduced small which with really of we spending, that’s things a pipeline their combined And a X out clients in have it’s those has impacted together that us, this slower. playing

Jaime Morris

Thank Okay. you.

Operator

of next Stabler question Peter Fargo. Our Please come will go ahead. Wells from

Peter Stabler

if So a couple, here. I could

the into saying going anticipated you’re Just, I first that, sure clarify business David, had it’s all, little year have you bit. another a let’s more about stuff, wins this just whether of new materializing. are I’m there, on whether that’s a you’re one. slowly, when not start I’m then you win just unclear and that little confused. it’s on not could rate what talking exactly a And the I’m timing. that converting

David Doft

Sure. we things are coming more my things there it’s And the business going and they wins expected, there at very are to how what remarks enough time the near the back to of the longer term up It’s in when with pipeline that It long those items are that we clients taking hits to prepared took that in to. we potential it some if not are when, look anticipated. of were wouldn’t new in gap that to term. that the up referred you make have than and we medium couple year, the I potential, dragged terms of our about convert, with where, dragged we that obviously, to existing out much is have are ramping slower. even have And from just combine point opportunities to play year we near-term that especially and

to got of a it out update needed those, up and catch that we felt of of today. build a we to was running And so we to kind guidance, X the decided it to for those our level that you time point combination that So of prior where on were the things.

Peter Stabler

right? expected So that percentage were you that just them, of to expected involved in, had to earlier and had conclude be you clear were to also you have, than pitches is they certain win then, a these that

David Doft

that They in direct involved in pitches involved playing pace at we out we’re that or expected. we’re discussions the are aren’t

Peter Stabler

out other your then, I And the you about through. in not very trying lot you others didn’t so The last the durable Okay. bullish In comment agencies, secondly, new the hear these had not initiatives about visibility and And for industry, forward. narrative, on revised pockets. restructuring advantages. you’re any more to consistently A the your that and air I thing, while of were was hearing now, talk I’m going outlook hoping kind of just the that peers suffering, Kind for but the that or projects larger to was year. narrative you guys, understand proxy could time, reconcile year assigned kind hit things. also coming of terms of of some about the we��re and you of business. project-based talked of confidence now

David Doft

just impacting few out trend we’re started, are seen Scott, clients of with of instances no comes that, us start pass where cumulative aspect couple project some but then repeat I’m versus I’ll combined, down that cutbacks except it retainer big pipeline. are the And I combined the there the some out that again, broadly. after looking and weren’t versus the retainer, Ultimately, a year sorry that on that that it’s a at. anticipated retainer and came myself, again, on project. we’ve the to to There’s and Sure. trend, project are stretching

there’s For bit the a more years, little X last the in sure, volatility been over business.

we just have grow a lot visibility opportunities we that. agencies, high of on to opportunity to else. see to whole that, our grow with desire based too. their help now. continue speak and have them of all to than seen you the think I to faster not It’s But discussions include happening in right for businesses, everybody And to brands them

Scott Kauffman

mean, said financial think, all. and it’s performance. I constrained it’s environment I a David, it impacted our

Operator

Rich next Please will come from go of Tullo ahead. Midtown Our question Partners.

Rich Tullo

Hey guys, my One for here. thank questions. question you taking

You reported lost correct? first quarter you after hotels.com results, right

David Doft

sure The know about difference we get specific press of not things the timing. it. I’m in when reported when the versus

Rich Tullo

much the that guidance on else in with this at resulting in brought get have of that How look you terms is trend And we’ve being can down? Okay. or some general, we over everything in secular today, MDC this more at is headwind discussed to going in what’s Partners?

David Doft

to So media to to that creative I’m the one not impacted on clear, of hotels, for going lost business but the be be piece And lose just agency client we this. surely, win point their the make we time, and to their doesn’t business, ad buying business time the life of agencies. the and And press and all press. the some some all the makes that’s we And work. all continue

rates assuming those ahead of think and call, pipeline opportunities so business with the later. sooner here them. to along updating results are, think on old prudent on and would I growth first the that quarter conversion, us, numbers of there based see we that’s opportunity we as out than ultimately, to the some hopefully, rather of see start new didn’t we’re move keep the see, this it could sitting reacceleration But they be we So a that that we and

Rich Tullo

on M&A -- WPP, the the going a are seller that’s you market? strategic all in with market or buyer in And guys with

Scott Kauffman

the we that end revisiting were an closed cash free year call, And flow said had balance the of we sheet given generated. of acquisition. our had We the outset, strength and markets at just we M&A the that in the

doing. of that independent isn’t WPP or I think it’s is anything

Rich Tullo

Okay, thank you.

Operator

Lucas from & Gabelli Our Company. of come next question will Barry

Barry Lucas

you, help this. balance evening. got square likely North good a economy, the tax year, trying reform fairly just to of you’re benefits the of Thank or American-centric. I’m Scott, to good David Again, we’ve

going this you your hearing they existing -- the Where are because novel? clients what you? you if is in is pitches? What relatively So cutting new business are tell do back, what are and

Scott Kauffman

functions new wants client less. continue Every to features the bring for remain and competitive, to more And and we table. solutions to

and part day, that about tension deliver the friction different at But clients. of and been So the the those a and more I’d There’s end of constant with we there’s equation. has shift of in say slowdown at challenge the been tectonic how and see been this dramatic are revenue the a always can services the the than a and don’t ongoing that quarter, are first all is priced. extent still we close the but we won, that think half they didn’t about shift. businesses we in to then When about maybe pipeline in look there they the of year. close the back quarter, second be to until the Price

handful we shift all prudent. down. up roll at it’s or So with we’re agencies, that can is of - things our a We just and the today. talk And trying to be where we just of sit clients look we up all both numbers, this and

staying to additional and the very our to within shareholder portfolio. to top And we’re line, agencies value unlock so focused and for efficiencies the it, we’re ways close drive continue to going we’re help operational it on create look

Barry Lucas

Are portfolio? sector-specific? seem that economy this of it broader there you can call be is to affected areas out across that based is the or Scott, particular your more client

Scott Kauffman

likely. these I’d it’s to instance, results are say But, and consumer the a packaged and the agency investments. in for scale held our is more now in technical sentiment being we’ve to which, lot the all we’re there of held in relationships prior - where boutiques, done generally, a CMOs across too historically, goods, who been creative challenges agencies agencies more long the been the for There’s traditional have of well. problems accountable to sector, be among ago, global affectionately meet era, industry not disruption have referred as to have

dramatic care, of We more You health sector, and the grow about investments. think us high-growth is we making a where continue outside to heard we’re it’s talk America. which place North

So quarter the expectations see like. about on just we the the prudent and lots of year of of about we’re growth has first based rest what being pockets setting look

David Doft

ones out, quarter. They bit an quite Slide were show a instances point can grew would are presentation, there to than of or actually And to those then grew see up some of in had X ultimately, from in a the below And X But verticals good either more just client backwards little divergence verticals flat it that And this on the underlying actually more XX%. was quarter. were of client Barry, XX%, where that a seen in X. we the we’ve there be categories more went they bit. reflected that momentum. impact or you no XX% the impact than We

Barry Lucas

All right. Thanks that. for

Operator

[Operator next come from will Lee Cooperman Advisors. Instructions] from Omega question Our

Lee Cooperman

on probably Google I’m held was for But would industry long franchise digital comment got with the net appreciate third a wondering questions, effect the might And whether have asked. would a some is you. Facebook’s business, be we do so and series the of it. the but the debt of of revised year-end financial we miss? But that worry if releases. to less have Because given And I’d a what you have this worth the these could is, I have I have about do whether a and at thought. because I’ve X the revised which covenant don’t questions, than projecting on question advertising XXXX? Second, really in EBITDA do I Thank is on have fourth hoping see media, guidance? bigger, you’re I’ve - consolidated, advent that you you implicitly

David Doft

Sure.

on quarter have at continue first issues our lots of seasonally and to is in our lots We with with of covenants which the terms quarter, any don’t ratios. we finished of leverage business our expect peak liquidity top covenants is room on again, to as of the strong remarks, our room. balance very sheet, this prepared year in the year. strong deleveraging continue deleveraging and said to I be last So a we path And of on

cash As you at next of in we $XXX million notes we a to know, year-end. to not and your have question, position, senior the revolver, in be expect

and $XXX be a revenue so range given We and guidance EBITDA, less out fall million. specific million. $XXX than should haven’t target Revised by implied the debt between million the $XXX margin we gave should net

Lee Cooperman

previously? [Indiscernible]

David Doft

of $XXX kind million. is million, implied number last $XXX the range, last The

Lee Cooperman

before I’m revision of sorry, $XXX the million. it million, $XXX guidance, was

million, EBITDA to So to $XX you’ve your million? $X million million by million, $XX $X $XX to reduced

David Doft

Correct.

Scott Kauffman

lot that options vigorously pursuing Lee, consolidation, our the believe we and portfolio on of shareholders. a that of to pronouncement issue of, unrecognized value we value realize any in and And on there’s behalf all to of are speaks the

Lee Cooperman

to. of a on when, seller. I I wonder been You’ve best call Scott, more talked you mean, you’re up buyer just than shareholders not than money. call of custodian mean, so different, people a the of is about the this been we’ve kind what last what the

Scott Kauffman

all said, Chairman, Well, to the I assure look, to responsibility you as that to maximize we’re seriously. take can a I value. consider that any options duty committed it’s we as And and It’s fiduciary board’s the it. shareholder

Operator

ahead. the And RBC. Steven with from Please next Cahall will go question come

Steven Cahall

Yes.

Sorry, a late. I joined little

I changing a don’t in asking So are hopefully, is your guidance. their exceeded I’m just, you that all guidance anything not year, And that, that forecasters, around and year, are lot significantly the to having that repeat. just less Last your question after own but you think you’re have bad your My visibility obviously, outlook. clients quarter, this that’s you visibility. just

the And it this so for in think the do improve term? just the growth revenue of what to of return for takes longer visibility to some you predictability industry

David Doft

a that question, actually, interesting think ask all That’s, appreciate to the time. We I about really that and way it.

as is sorts And growth can any us Scott of value core ultimately, where is to enhance think, that now referred both as premises greatly expense. earnings And view visibility as think data our to sometimes many at that industries. I to challenging But under of there’s have kind we or power an to, and efficient leveraging investment relationships marketing X many as before, growth. alluded companies we company and right order schools are their they unfortunately, deliver to companies think, that other our And the others thought so just of there’s customers, those competitors we and looked X And more will, cut. of of to that in strategy is do one, the drive that to of ones for out pressure in We investment, emerging corporate competitive of the one X could I in the and can related for that and to marketing America. service of I the to we an be expense an opposed question differentiate made with spend. that business power prove America an corporate continue by are our the able our no marketing to is evolve increase. I offering advertising drive

Steven Cahall

fair, thank you. That’s

Operator

question-and-answer our conclude will conference to Chairman this to for I and turn gentlemen, Scott session. and closing Mr. like back remarks. would Ladies CEO, over the Kauffman,

Scott Kauffman

just us Good in today unlocking Thanks. York value everyone want from unrecognized that reiterate New In focused accelerating to remain revenue thank we growth, and efficiency portfolio. afternoon driving our to City. and I operating on for closing, joining

Operator

now you your you conference presentation, The today’s concluded. for and lines. now has attending Thank disconnect may

Stagwell (STGW) 12 May 182018 Q1 Earnings call transcript