Stagwell Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Stagwell Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and operational status.</b>

AI Summary

Stagwell Inc (STGW) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Stagwell Inc. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal executive offices are located at One World Trade Center, Floor 65, New York, NY 10007. Stagwell Inc. was formerly known as MDC Stagwell Holdings Inc., MDC Partners Inc., and MDC Corp Inc. The company is incorporated in Delaware and operates in the Services-Advertising Agencies sector (SIC code 7311).

Why It Matters

For investors and stakeholders tracking Stagwell Inc, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data and operational insights into Stagwell Inc.'s performance for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential future performance in the advertising and marketing services industry.

Risk Assessment

Risk Level: medium — Stagwell Inc shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the absence of specific financial performance data within the provided text necessitates a medium risk assessment as a comprehensive analysis cannot be performed without the actual financial statements.

Analyst Insight

Review the full 10-Q filing to analyze Stagwell Inc.'s financial statements, including revenue, net income, and debt levels, to assess its performance and identify any significant trends or risks.

Key Numbers

• 2024-03-31 — Quarter End Date (Conformed period of report.)
• 2024-01-01 — Quarter Start Date (Period covered by the report.)
• 2023-01-01 — Prior Year Quarter Start Date (Comparison period.)
• 2023-03-31 — Prior Year Quarter End Date (Comparison period.)

Key Players & Entities

• Stagwell Inc. (company) — Filer and subject of the report.
• 0000876883-24-000014 (other) — Accession number for the filing.
• 20240331 (date) — Conformed period of report.
• 20240502 (date) — Filed as of date.
• One World Trade Center, Floor 65, New York, NY 10007 (location) — Business and mailing address.
• MDC Stagwell Holdings Inc (company) — Former company name.
• MDC Partners Inc (company) — Former company name.
• MDC Corp Inc (company) — Former company name.

FAQ

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Key Financial Figures

• $0.001 — stered Class A Common Stock, par value $0.001 per share STGW NASDAQ Indicate by che

Filing Documents

• stgw-20240331.htm (10-Q) — 1620KB
• stgw-2024331xex311xmpenn.htm (EX-31.1) — 12KB
• stgw-2024331xex312xflanuto.htm (EX-31.2) — 12KB
• stgw-2024331xex321xmpenn.htm (EX-32.1) — 7KB
• stgw-2024331xex322xflanuto.htm (EX-32.2) — 7KB
• stgw-20240331_g1.jpg (GRAPHIC) — 9KB
• 0000876883-24-000014.txt (&nbsp;) — 7895KB
• stgw-20240331.xsd (EX-101.SCH) — 59KB
• stgw-20240331_cal.xml (EX-101.CAL) — 69KB
• stgw-20240331_def.xml (EX-101.DEF) — 350KB
• stgw-20240331_lab.xml (EX-101.LAB) — 615KB
• stgw-20240331_pre.xml (EX-101.PRE) — 498KB
• stgw-20240331_htm.xml (XML) — 992KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Unaudited Consolidated Statements of Operations for the Three Mon ths Ended March 31 , 202 4 and 20 23 3 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 4 Unaudited Consolidated Balance Sheet s as of March 31, 202 4 and December 31, 202 3 5 Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3 6 Unaudited Consolidated Statements of Shareholders' Equity for the Three Months Ended March 3 1 , 202 4 and 202 3 8 Notes to the Unaudited Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 47

Controls and Procedures

Item 4. Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 50

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 50

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 50

Signatures

Signatures 52 2 Table of Contents EXPLANATORY NOTE References in this Quarterly Report on Form 10-Q to "Stagwell," "we," "us," "our" and the "Company" refer to Stagwell Inc. and, unless the context otherwise requires or otherwise is expressly stated, its subsidiaries. All dollar amounts are stated in U.S. dollars unless otherwise stated.

Forward-Looking Statements

Forward-Looking Statements This document contains forward-looking statements. within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company's representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company's beliefs and expectations, future financial performance, growth, and future prospects, the Company's strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as "aim," "anticipate," "assume," "believe," "continue," "could," "create," "estimate," "expect," "focus," "forecast," "foresee," "future," "goal," "guidance," "in development," "intend," "likely," "look," "maintain," "may," "ongoing," "opportunity," "outlook," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will pr

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STAGWELL INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Revenue $ 670,059 $ 622,444 Operating Expenses Cost of services 444,526 413,898 Office and general expenses 163,343 158,836 Depreciation and amortization 34,836 33,477 Impairment and other losses 1,500 — 644,205 606,211 Operating Income 25,854 16,233 Other income (expenses): Interest expense, net ( 20,965 ) ( 18,189 ) Foreign exchange, net ( 2,258 ) ( 670 ) Other, net ( 1,267 ) 220 ( 24,490 ) ( 18,639 ) Income (loss) before income taxes and equity in earnings of non-consolidated affiliates 1,364 ( 2,406 ) Income tax expense 2,585 236 Loss before equity in earnings of non-consolidated affiliates ( 1,221 ) ( 2,642 ) Equity in income (loss) of non-consolidated affiliates 508 ( 227 ) Net loss ( 713 ) ( 2,869 ) Net (income) loss attributable to noncontrolling and redeemable noncontrolling interests ( 569 ) 4,258 Net income (loss) attributable to Stagwell Inc. common shareholders $ ( 1,282 ) $ 1,389 Earnings (Loss) Per Common Share: Basic $ ( 0.01 ) $ 0.01 Diluted $ ( 0.01 ) $ — Weighted Average Number of Common Shares Outstanding: Basic 112,633 125,199 Diluted 116,405 289,806 See Notes to the Unaudited Consolidated Financial Statements . 3 Table of Contents STAGWELL INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (amounts in thousands) Three Months Ended March 31, 2024 2023 COMPREHENSIVE INCOME (LOSS) Net loss $ ( 713 ) $ ( 2,869 ) Other comprehensive income (loss) - Foreign currency translation adjustment ( 7,146 ) 4,447 Comprehensive income (loss) for the period ( 7,859 ) 1,578 Comprehensive loss attributable to the noncontrolling and redeemable noncontrolling interests 3,713 2,036 Comprehensive income (loss) attributable to Stagwell Inc. common shareholders $ ( 4,146 ) $ 3

View Full Filing

View this 10-Q filing on SEC EDGAR