MDCA - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the MDC Partners Second Quarter Results Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would like to now turn the conference over to Alex Delanghe, Chief Communications Officer. ahead. go Please

Alexandra Delanghe Ewing

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

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

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

slide in presentation about filings. Forward-looking are and earnings are the referenced cautionary company uncertainties our XX-K statements the in statements release detailed to and and further Form the in included subject company's SEC subsequent

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

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

Scott L. Kauffman

everyone. our good actions results, to Alex, and structure to afternoon, on you, taking and grow financial we're I'm Thank our specific the shareholder create three go-forward to going value. strategy cost topics, our and focus address

indicated would be quarter are first second guidance we the challenging and full we to the expected, during year. case for be we call, the continued quarter for maintaining the therefore, business the as As

in this we for continue year As we've and and solidify a and on I'll necessary just quarter steps improve moment. margin taken first beyond. to on call, indicated also the and to the prospects actions these take our protect elaborate financial

agencies, in meaning despite meaningfully was the quarter improved comparison, difficult was revenue by more X.X% the the six net little impact previously of basis, targeted XXXX continuing headwinds, and performance. first prolonged to cutbacks, which flow, discussed, revenue as pass-through selectively last were impact a preserve the areas. to behind cash was impacts the invest of new growth our continued XX also of revenue basis while second profitability portfolio talent for the our far took actions of X.X% to that quarter, client to Turning decline and cycle we world-class sales as months. in points, and a down strategic the quarter, and year. offerings organic growth in revenue down closely on results, a reviewing growth in In The There our the by quarter of second strongest year-over-year business organic

rate we've the incurred over one-time of not million first going forward. are $XX that months, run six on cost costs For part of initiatives structure our

million in severance we've cost of example, structures of resulting the date. driven year to in For improvements several $X agencies

had individuals to ourselves annualized this how annualized our consolidation ways revenue partners units of new and into took efforts we I over the of the in spent in so real The as resulting addition, efficiencies. of could part estate an and and moves taken parted costs on certain footprint, of number in not on $X initiatives. smaller additional have and our the almost agency I spent in almost million that sits today, reiterate, we cost as accounting we generates efficiently, which moves severance Group, through an are more closer we've setting $X have we've And continued delivers portfolio reduction that in the network. run our a centralization cost strategic the of the quarter To rules. includes operating savings we In effective savings, and MDC rate first of second year of our cost of well Corporate million additional $X annualized quarter, the more a staff million staff through $X the which across structure also to up million over adopt initiatives $XX the with forward. million We that, well restructured our an estate our future. million operating by And do quarter that MDC top while upfront $XX million. cost finally, On functions, top clients, reporting the third reduced going serve real total. on Last of with be $XX as determined at at a week, look meaning

$X.X of While in implement over deliver savings costing us will to annualized million $X restructuring XXXX, million. the approximately

our focused of an shareholder difficult on deliver these as ability in necessary has and to cutting were of just than While landscape, be more success company costs. a evolving moves face to value, the competitive our course,

we're we're we borne have agencies do Ally quarter, we from relationship the clients And strategic now Networks' ensure Group. each to great to Consumer buying our growth accelerate. portfolio Fox new extended is as pipeline part will and the Net began incremental second work MillerCoors. And forward. the with from at the continuing and part that, Digital media focused. manage new our of in million going to and Hyatt XXst notable look fruit our Fox our Century maximizing and its and to value for fits within our efforts plans win have to some brands $XX our with our assignments, totaled Financial, wins to planning As which where wins of media of These agencies business, where business determine latter of quarter, more business continue in for are all in

year. believe the company in in of second trends, face significant one-time an XXXX. of on business, standpoint, for a heading and our past clear landscape. comparison in of direction with growth competitive year a cycle growth pillars, on strategy also second the difficult up data in improved profitability expect increasingly last our a to Better stronger in the capture to more analytics us help and the combined this and leader our and core a new offerings. award growth place half in net positive our to will of category we reduction most and of combined as revenue revenue the network run progressive MDC's to and We're our the discuss we include substantial opportunities with creative We our sets David these rate return organic moment. how detail with year on balance fortify materially quarter, the key winning we're much As future. will our the costs savings initiatives into differentiation in strategic communications which refocusing and efforts From digital help leverage a the agencies for

disrupted. the capitalize world are a business our the to importance digital growth on where continue and of analytics ad in agencies to being data We of traditional

one most family. Porter the has around early us, Bogusky the & the brands and our continue Instrument the industry in clear, while, the and date. meaningfully those CPB are the other propelled of Bogusky means our growth to who place at our memory, steered thrilled XX% campaigns talent as the increasingly opportunities. of segment and that acquisition pillars proud bolstering and many post create am as To well leadership for and quarter data-driven in some Chief engaging Alex the are our in Partners campaigns of rejoined of have that our announce Engineer, build Crispin, core second of play brightest Alex of year Creative Taking have groundbreaking by in no network. what keeping offerings, as digital the defined for opportunities. led brings has pipeline to Co-Founder where MDC's And are of and and those further company experienced offerings of world. Alex innovative agencies as half to is Alex return excess second To growth most a closer digital on bolsters to Our recent newer in go-forward MDC a transformative intensely pipeline a which by the I it needs our tradition the and healthcare, focused our be look we we campaigns digital analytics pure team the great talent with grouping of quarter the of to year. home new lives, stellar and of you been to introduction in data wins the marketing all to organic

reductions are positioning the at over for will agency business growth. now are financials. David hires investments and level our go cost the and decisive Our selective some strategic of the

David B. Doft

want my on Thank focus good comments I afternoon. to key issues. you, Scott and the

organic Our decline of was basis, difficult organic was in despite a minus the quarter growth of improvement reported the margin the X.X% quarter second of revenue is deceleration more X% a an On the points. by our quarter. as revenue, meaningfully growth comparison pass-through the XXXX zero This, strongest basis XX excluding far. from first net

of to business the a growth organic we focused and we half balance impacted second results. When continues in last slowdown the the first on to we've are we in ease the It the comparisons year. improved expect standpoint, that half spoke indicated earnings be return as QX wins year. we new ramp, our profitability lag. profitability to for on of the should quarter then call, recent profitability April From experienced now that that expected second the As revenue

cost in meaningful needed, second work the be portfolio, our $XX as leaders the initial revenue operations the counter staff from respective costs a were agency hard plans. restructure annualized the over million amount Our lower to The their across removed will apparent benefit when to from half. of of savings

in largely the though second ongoing costs initiatives in million is included results were accounting to EBITDA, costs $X in addition the associated of are As This adoption incremental revenue related restructuring to in will new you the at one-time of in quarter. severance. $X similar half related fade the the modest fees million and first restructuring the of look This the with QX. QX totaling professional rules year,

our In terms of with items business of note. we're our outlook, underlying the to maintaining two view prior

dollar year year. on revenue our for means a to impact the will neutral of million U.S. the $X favorable to which of impact foreign XX million QX. costs remained the basis $X the where view based full rates points, have us end for of EBITDA First, prior that of exchange a at strong, This were adjusted versus full

mentioned, Scott costs. a annually, as the impacting million the The approximately week, of executives. the we company was or staff restructuring $X.X at company of save will $X just and senior executed XX% this number cost million restructuring MDC approximately about Second, a parent corporate last of

will which our costs, excludes Our reconciliation added these third EBITDA be updated quarter. back the adjusted in guidance in

the sheet. talk Now let's about balance

and working capital Given leverage during our increased the our results, of first volatility quarter, to ratio the quarter. strategic half poor investments quarter continued

Street. our half, the the While we of month negotiated, costs. than improved on our and to contractual is expect the a get range EBITDA in for that and profitability as right the on beginning covenant and calculations is maximizing like value cash end, in would trailing used based to on and commitment flows This closer all was sharp which it to $XXX steps the total the different within To EBITDA year. million. we'd taking basis covenant business take like, second shareholders and we it is With covenant to a for and necessary the adjusted leverage that, remainder back report number, now drop stock QX our I reiterate ratio EBITDA to your At our one-time in quarter clear, of any want to be adds to a is the questions. track. in XX the certain we seasonality the

Operator

begin We will question-and-answer session. the now

of The Salmon go Dan first Please BMO Markets. question ahead. Capital from comes

Daniel Salmon

think most one just Scott, some that into in for year-over-year about like Hey, category little industry. No press (XX:XX:XX). for incremental the as very a slide everyone. seen that I CPG Scott. the hear afternoon, slip bit maybe, that in more little love yields tough good think, bit hear in then, Scott, reported and a has we've questions category category, or just about return. the Alex's David, negative the a you the first quite present the there's more table That's for side maybe David, surprise, growth company second regarding that secret deck Two to And some by the been for to just the trends to around been losses I one here news and specific well. a everyone. We'd trade we'd

great. And that. most Just think on away? would could he be right in Thanks. in That do coming be any background provide you that you can impactful where

David B. Doft

I'll start out. Dan, So,

CPG definitely ins XQ So category you're very decline XQ, within in in is that in actually growth as to larger any to category category CPG a category. opportunities modest have. company we with continue a there's outs our right, as there we opportunity see from our of very, growth decline for and slipped other Overall, and to many a relate CPG and the pipeline the category substantial

hopes able we'll high and forward have be going convert. to hopefully we So

Scott L. Kauffman

Hi, Dan.

for have today. something a an we're And he's just have That I on what So leadership where of of think call, it I to where mean, minds, Alex relevant can't time seemed the if corporations it & talking headed agency remarks, in simpatico very the need been industry, we that name been of industry meeting of citizenship on Crispin, thrilled it level Alex's to catalyst. to return back. you in about was thrilled from of form the was couple today. name and months prominent as the given as of and just said the creative team formal a active leadership, he's be me was at where There we're need was is the think – and the means became and far the industry in in a is away there headed, too, is what to literally the of the to real Porter I thought it's such clear generation and been door a as a could him him. we're redefine to be what true, that have his the Bogusky. And more that about the high brand

Daniel Salmon

you. Thank Great.

Operator

Peter Please The Fargo next ahead. question go Stabler Wells from comes of Securities.

Peter C. Stabler

you. Thank

us of coming in at in growth, the wondering of where obviously, wondering on have slide media be put puts you. back then, adjusted used growth. of improvement the we're terms you'd lots the about is the in to help you see year organic be as the improvement here going for that kind Weakness, I'm half David, number EBITDA of thing, exclusions if the talk could the Just point to for if agency and one a in you willing takes Thank terms just guys is XX, for as you second and looking going or brighter segments, organic a of on second a outlook finer do? wondering half? full range to to And integrated

Scott L. Kauffman

It's a we shake things, core we've The got growth that continue our and those. pillars to about of starting Thanks, free to pipeline combination been we've Peter. bit. is behind talking invest a

is are our aware more the conversations. some verticals that the of fruitful Some challenged the in conversations industry of of most

at we segment healthcare, continue so And – that we growth in investments, capabilities, great make for the other of and where look if all that's to data-driven highlighted us. you in been an area

to things. be so, And it those expect a combination we of

David B. Doft

to Yeah. segment. historically And just we have not add, guided by

better talking others. and the will are talk across opportunities all it some the we'll when about Ultimately, ultimately, So that we're they – segments. portfolio happens. do than about are And

$XXX on end. you you if terms $XXX math, kind In through and $XXX the of end, to the question, second the of $XXX basically million, million run get high on million low million the to

– and in FX tell they the of difference is And we they moved We the FX. little are rates there so, bit. means, stayed we what where change take which forecast if it rest year rates only the they and real don't a the you is not

that us So profit standpoint, an guidance $X to left otherwise move unchanged. million million the but (XX:XX:XX), and underlying $X hurts operating of we've from

Peter C. Stabler

Thank helpful. you. That's

Operator

Omega comes Cooperman of ahead. question from next The Advisors. Please Lee go

Leon G. Cooperman

Yeah, Hi.

CapEx of are and assuming $XXX of what the you year? for million interest EBITDA to million, kind the $XXX On expense

David B. Doft

$XX looking we're about at Sure. CapEx, million.

expectation. We looking have about were reduced Previously, $XX our CapEx at we million.

much in that depending somewhere time. million. to say interest is million, of of on so in – to costs from $XX revolver the volatility $XX in million, well $XX the From an other time managing been the what's how million, standpoint, we've So addition that's in as portfolio, low-$XX

Leon G. Cooperman

you the (XX:XX:XX) And then of did in cash much way pay taxes?

David B. Doft

expect we taxes, cash in $XX million. Our $X to of to million be the range

Leon G. Cooperman

Right.

up. debt of there debt. the keeps look debt because end the free paying So flow the sheet, the down of going to is Where you keep at versus amount year is be when promising a (XX:XX:XX) is it at significant now? balance about here, the where going But cash I

David B. Doft

of than the to to have a as we is outflows at year lower we've in we consideration in strong mid-year, be now. expect the have it tends tend our deferred and end substantial debt about a talked the prior past, the to XQ substantially We capital working Seasonally, the not to half related our acquisition second year. from first of deals from be as the the as year of standpoint spike, half

the on trying were months, bulk inflows the things related I'm well, be, think rest minimal so take did been Why I This those I costs $XX only rather deal to coming the other to So think to? is the is, we [ph] about in (XX:XX:XX) you cash and way doing now, it not <: do mean, away, million half, it as that you be [indiscernible] the (XX:XX:XX) but but there $XX (XX:XX:XX) as the million swinging X statement, XX of months, your slower the of substantial shouldn't handwriting working year. here expect well long months combination than may profitability structure? fading the half an I thought. and capital our second to than have we [ph] X wall referred second cost the reducing unfair the from ago of in don't payments something

David B. Doft

I So understand question, the I I understood – think.

QX, in quite So and that expansion We X% number a the in strong growth. by on last here, a it's different year. business as across began I so, moves and business began (XX:XX:XX) the away one first visibility had fade bit business year just winning business investments the moves it about do as we But ultimately, a decision a Those our to Ultimately, we're for in operating the year that's at first company, call. we and so of we this have in year, agencies acted organic think quarter. well. little we was quarter us business take was structure, the talked There longer not XX to given doing continued QX does throughout make true. one units early

with We heading second of in to better will accrue XXXX. us half course benefit we'll from and over that the that savings shape much the into be this year the will

Leon G. Cooperman

you. Thank Okay.

Operator

Please next of Phoenix Investment Adviser. The comes question Ivan ahead. from Kara go

Ivan Kara

Hey, David, quarter. congrats Scott and the on

some the color can win and the that mind. saw to know year like relative give year quarter last versus out if anecdotally in of then like also don't wanted you Just kind you if on tender there the you to ratio activity your before,

Scott L. Kauffman

We Yeah. line. making a about previously across robust had talked frustration not and it pipeline of the finish the decisions

continue we for agencies. – to great that our So see demand

If you global have the get lot think invited and network commoditizing other are of are done opportunity, or about platforms a of pitches. homogenizing (XX:XX:XX) agencies, lot what of we companies some a names, to in powerful still so still holding a there you of brand

in loose, of mentioned others, starting is come to to quarter, Some of couple be we a those the announced. key wins

about that's know and the break province until the them don't the campaigns of you client. Some,

a now. lot activity there's So right of

their center, our CMOs more about in table. lot being very needs. to across the We've networks respects a of bring bringing agency hear needs and getting an shifting to solutions more the data to being able talking conversant and to advantage and nimble, analytics You multiple many of openly anticipated in is there those smaller

year of into improve, go we respect, said up. as that half in the heat second (XX:XX:XX) the So see we increase,

the coming reviews finish line are now. long-standing across some of And those

David B. Doft

had weeks of When add that a the call, first our which quarter I root this second because at pipeline first of was and first Decisions a there about to the goes made. eight more end wasn't wins, in new were little point weren't converted. lot that to May, around investor the think we color business matter. the quarter talking we of week the six, May, And wins the really of the being delayed of

majority of XQ came for in And June. the vast so, the wins

months that through to case, have (XX:XX:XX) all will continue But continue will to that June and and we'll in So, hopefully August, pace the few next happy. very it hopefully of maybe seems see. but if the that's for we summer the I really as moved through started we'll and July vacations think be move we

Ivan Kara

guys. Thanks,

Operator

comes question next Investment The Stanley go from ahead. Management. Gulati Please Anuj Morgan of

Anuj Gulati

I question. there a accelerate pay it taking the any a for particular I asset you just through else that that like had be Thanks my down cut way fact call. to is asset agency whether debt. can that? non-core have Hi. sales, costs that But or or appreciate anything you

Scott L. Kauffman

any and I when more an dispositions at our Look, but also behind David necessary, of looking in someone portfolio, core possibility invest might assets continuing else's mean all or that are growth Hi. at the pillars, Sure. that valuable evaluation said, includes the be we're of steps to of looking not hands.

ongoing announce, when So, will. we and around the it's to have an conversation table we something

Anuj Gulati

Great. you. Thank

Operator

next (XX:XX:XX) The go Please comes Credit question Arbre ahead. of Suisse. from David

Unknown Speaker

Hi, guys. I for appreciate question. taking the it. Thanks

the Some I the I questions of have but balance to if sheet on follow up wanted already business asked, could. been just quickly

X.X X.X's of leverage mentioned versus turns guys the test You (XX:XX:XX).

covenant, So what think have to is, on about my do you. it? And then, I should you close follow-ups you the question are you the how outlook? some had Thank miss we guidance liquidity. and remedies the And given should how

David B. Doft

Sure.

room use most set the So and under the capital, let's credit miss point is year, don't our up the it's the of because The always exactly the payments the why the covenant deferred timing that where of we with year negotiated of start our the that banks – we covenant timing expect it. of when that acquisition middle of facility. the of flows to we working with and business we that

just which by question, also part our incremental on it as which portfolio, the also year, where would is So of it fourth we the we that the third in end and ways and of accelerate part We're buffer. end. of towards that, (XX:XX:XX) other have quarter asked a expect the to we'll a hopefully could improvement to our down immediately for come do last year was lower create of continue (XX:XX:XX) the to the move the as dramatic pursuing review

Unknown Speaker

highest, just think That's good. I the is helpful. I on record. on then the And balance seen guess, debt we've liquidity, Very

understand do question availability quarter seasonality with revolver the are So And over quarter? where quarter? my about of what's that higher current the where I it this acquisition we in the me. described, just of current? under costs the but sort how is, And terms you revolver balance very deferred given also think much. revolver you that's stand and availability you for today Thanks that, are the

David B. Doft

Sure.

So with $XXX under extremely balance we comfortable the The have. million, revolver that are the we is availability $XXX facility commitments and is the borrowing million. base

either significant second year. look there. the So you considerations way acquisition at in there minimal of deferred room The it, is are half the

flows And so, the seasonal the largely, the seeing half year, an in interest improved aspect company, of we with capital be besides the it of little combined the second of offset with will payment working to improved profitability November. in

Unknown Speaker

right it? to clear, way is think good. that be the just to the size, the hundreds commitment, is about given revolver under availability Very the commitment just the But millions, probably in of

David B. Doft

we It banks. is have million the revolver, the from $XXX a that so that's commitments

Unknown Speaker

Right. actual what? is But to you the (XX:XX:XX) amount that's available

David B. Doft

And borrowing borrowing – base with the million. $XXX base currently is the

Unknown Speaker

million it on there's currently? And Right. $XXX drawn

David B. Doft

Correct.

Unknown Speaker

it. Got

you. Okay. Thank

Operator

next (XX:XX:XX) Fargo. go ahead. The from question Che comes Wells of Please Brian

Unknown Speaker

some could cash working as generating to during Hi. Thanks capital wanted down the prior-year period? quarter break ask if to question. taking particular drivers any perhaps I opposed for in the the in you usage the

David B. Doft

five, how years, case, often to of seven between the of around balance So working this as XQ year, typically, year the is clients sheet. that capital, the if flip-flops to back year, you'll (XX:XX:XX) impacts and of you there is it our flows and cash timing plans media XQ our the through last timing relates (XX:XX:XX) between see look

consistent XQ last a with year, little than last was XQ So worse was year.

first than improvements half, worse and we year XQ And reverse expect in half. last with little in aggregate, second to then, the the so, a throughout

Unknown Speaker

returning other And that Okay. deferred partly the equity be MDC acquisition it here Thank transactions? to is of more used considerations as – would you for usage for then for something you that future relying was you. upon Instrument opposed using is, acquisition, funded discussions and, to question future my

David B. Doft

where performance one we acquisition for. transaction Every transaction what use with potential a to consideration to pay get deferred and from custom tool There negotiation. about is the that's order drive agency construct, or had management is as interest no where well. but the is as a the is there was The minority teams paid MDC hands there comes deferred align we price, deal acquisition ensure in slightly of management in Instrument equity The of consideration. XX% alignment the and different upfront of in

we'll but from right now, to time on focused see not clear, activity. be we're So acquisition meaningful time, to

are portfolio that's second of time. review on our focused delivering spending focused half performance. We're we're We on existing and our where our

Unknown Speaker

Great. Thank you very much.

Operator

The comes next Price. of Bauer ahead. T. from go Rowe Please Jason question

Jason A. Bauer

Appreciate the time, guys.

know market high-XXs, to doing that? any half way grows scratching accretive against sort on, mid I'm the are the Just in Cooperman's question back keep leverage, I our flow appetite the work the the for as out be to trading year? cash and And with the open follow Certainly, and earlier revolver of prohibitions or back bonds maybe up them through Lee company it to here and the that. to at buy could we guess, what also your the prohibitions of of the Thanks. of in willingness curious

David B. Doft

within baskets in on not focus Sure. it's think We driving do surely business. – at have room The to looking short-term, ultimately, something continue the to improvements as we we're our the to so. I

something through end opportunity, to and it's of that, the think continues before and move we consider we for our liquidity may borrowings consider. to we'd year, the our on we the be overall as progress show balance bonds but using there our a like if there's sheet I disconnect on

Operator

Please The ahead. next JPMorgan. question Steiner of go comes from Avi

Avraham Avi Steiner

just One, here. couple a got I've you. Thank clarification. a

outlined, (XX:XX:XX)? Just, second incremental much half of will XXXX, the how please through and the cost is in saves what you be flowing

David B. Doft

of As north of was said, million cost we savings. there $XX staff

months' was worth that took moves few of in get place that. will of early largely XQ. million six So, we A

not may we get million math remarks. gave on of that the $X $XX we was in So, about the prepared based of the million impact the full and that

it through the that that, $XX some year. ultimately, first in happening to XXXX, of the hit is our Of So, gives smaller $X XX% and but we so the that cost off into of million, planning. million, of of benefit we the frankly of to which will some expect (XX:XX:XX) happened because August, XXXX a year. strong get us half percent it half the second a might base, of and of the will we July build week, this amounts have Flowing of get substantial

into because that year, XXX% a year into Given we gets go made. that agency, there with of it's it cost base million decisions that's to planning it little gives of you investment to that say next complex us that get ultimately, depends amount But be point. tremendous next on to million next might agency going of sustain starting where to has for lower our say a million so around which a flexibility corporate, a lower before $XX $X year. starting $XX And point, is the

Avraham Avi Steiner

can then, like the just to end? hope Thank that up you couple following you year you without be that. selling expect out Do around And on for would assets you of do? questions at do And of revolver revolver. the to

David B. Doft

depends in and might where there the things. scenarios there's the is different think a revolver we where it out on be bunch scenario revolver we'd and of a of modestly be I

be we'll chance a So the I modestly revolver. revolver, really might the but out in hopeful we're still think of be there's we

Avraham Avi Steiner

visibility? how hit much. guidance just today, obviously talk very has X, can. get changed. confidence confident your about your the I And in of I'm Thank But to how that and about will business August but the we a just comfort, my visibility last you've maybe should given Okay. sense It's talked and visibility one numbers that trying you be you we've if reaffirmed

Scott L. Kauffman

Sure.

So for slowed presence close are down market. and our points monitoring XX decision-making, we're industry their but process working, to been close their has visibility of and marketers agency, and as have we thought those so relationships the mentioned managing active relationships. David challenging the with

guidance. to that spending the have coming are elements for are year, in we And that that so, being the contemplated evaluated remainder are these of campaigns see all as the to the plans new we reaffirming of business launched, look determination the or you comfortable pipeline,

Avraham Avi Steiner

you. Thank

Operator

question Peak comes Jeremy from of ahead. Kahan Please next Capital. The North go

Jeremy Kahan

or metrics net it robust how a give questions, necessarily was be end for I was you. Hi, guys. can pipeline, also wondering then, on if number doesn't will is, number? can give new XXXX. been into of the I you color wondering sort that quarters where if been because Thank and on first new the the sheet. think through balance flow I business And leverage any us that robust the Two you any it's we've any think sense of hearing always for us at business you on of

David B. Doft

Thanks, a metric of for obviously, the From difficult XXXX things I me so guided little we that should we that, standpoint, business, Sure. delever to growth is EBITDA, haven't to year. historically But as think one said Jeremy. a leverage turn it's if able standpoint. deliver from give be we can as we've much that bit a the the a in of half

that business number to when come to So obviously it up XXXX. depends you update for on with what that on give that and we'll guidance growth forecast we our put want

Scott L. Kauffman

And in of that and I number we I'm within tenor of at up for. and those when talk in disclose, that we family is about are is the reviews, a looking reviews overall asked in not that the of being are the the robustness what our business number the agencies of size number for the pipeline, of grabs Jeremy, that the

being net of business, of scope of size work number. and So, fees. is course, Net business a new

we as than more we we so, And said, win lose.

business. new keeping and the of business So winning existing it's a also combination

date, in made. has the of third being the So the beyond. quarter of and not To about agencies come how to business, our it's amalgam winning headed, process. some doing thought challenge in positioned where that from getting we well and or market starting not about the is is we'll that a start a It not loose number offered to an on are they're now decisions not where It been not analysis are is Those decisions quarter and based to competitive and see activity of up experience of lot moving have quarter. parts.

Jeremy Kahan

you. Thank Great.

Operator

concludes back the over to question-and-answer would like any our Kauffman turn closing I This for to session. remarks. conference Scott

Scott L. Kauffman

in and us and certainly thank operator. again appreciate for and just Thank I New City. to everyone XX from you. robust you of about to York bid we number I you, today, seeing good want forward I afternoon Thank all the look questions joining David weeks. you

Operator

The concluded. attending conference now presentation. for has you today's Thank

You may now disconnect.

Stagwell (STGW) 3 Aug 182018 Q2 Earnings call transcript