MDC Partners (MDCA) Misses Q2 EPS by 5c, Slight Beat on Revenues

MDC Partners (NASDAQ: MDCA) reported Q2 EPS of $0.02, $0.05 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $379.7 million versus the consensus estimate of $379.51 million.

• Revenue of $379.7 million versus $390.5 million a year ago, a decline of -2.8%; excluding the impact of ASC 606 (see details below), revenue was $389.5 million, effectively flat versus a year ago.
• Organic revenue decline of -1.7%
• Net income attributable to MDC Partners common shareholders of $1.1 million versus $8.0 million a year ago; excluding the impact of ASC 606, Net loss attributable to MDC Partners common shareholders was ($4.5) million
• Adjusted EBITDA of $43.0 million versus $47.0 million a year ago; excluding the impact of ASC 606, Adjusted EBITDA was $33.9 million
• Net New Business wins totaled $17.1 million

Scott Kauffman, Chairman and Chief Executive Officer of MDC Partners, said, "2018 continues to be challenging, so we\'ve been taking the necessary steps to improve our financial performance. We\'re taking targeted actions to protect our profitability and cash flow, reviewing our portfolio of agencies while also continuing to selectively invest behind our world class talent and strategic offering in higher growth areas. We believe these actions will position MDC Partners for a return of market share gains and we continue to expect an improved second half across our performance metrics, in terms of revenue, profits and cashflow. As a result, we are maintaining our full year guidance for 2018."

David Doft, Chief Financial Officer of MDC Partners, said, "As we move to the second half of the year, the burden of the cost of implementing the new accounting rules as well as the restructuring-related severance and real-estate consolidation expense, which totaled $12 million, will begin to lift. When combined with the actions that we\'ve been taking to align our cost base, while dilutive to 2018 profits, these actions position us well for improved profitability going forward and provide a pathway to at least the low end of full year guidance."

For earnings history and earnings-related data on MDC Partners (MDCA) click here.

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