MDC Partners (MDCA) Misses Q4 EPS by 29c, Revenues Miss; Completes CEO Search & Strategic Review, Announces $100M Investment and Subsidiary Sale

MDC Partners (NASDAQ: MDCA) reported Q4 EPS of ($0.02), $0.29 worse than the analyst estimate of $0.27. Revenue for the quarter came in at $393.7 million versus the consensus estimate of $394.1 million.

COMPLETION OF CEO SEARCH AND STRATEGIC REVIEW:

• Mark Penn named CEO of MDC Partners
• The Stagwell Group invests $100 million in common and preferred stock
• MDC Partners separately sells its interest in subsidiary firm Kingsdale Advisors
• MDC Partners entered into an amendment to the existing senior secured revolving credit facility with Wells Fargo Bank

FOURTH QUARTER 2018 HIGHLIGHTS:

• Revenue of $393.7 million versus $402.7 million a year ago; excluding the impact of ASC 606 (see details below), revenue was $406.1 million, an increase of 0.8% versus a year ago.
• Organic revenue decrease of 0.3%
• Net loss attributable to MDC Partners common shareholders of $83.7 million versus income of $187.4 million a year ago; excluding the impact of ASC 606, Net loss attributable to MDC Partners common shareholders was $84.5 million
• Adjusted EBITDA of $52.0 million versus $66.8 million a year ago; excluding the impact of ASC 606, Adjusted EBITDA was $50.1 million
• Net New Business wins totaled $26.4 million

David Doft, Chief Financial Officer of MDC Partners, said, "We are very pleased to welcome Mark Penn as our new CEO and The Stagwell Group as a strategic investor. The capital invested by Stagwell will provide the Company with greater resources to invest behind its growth strategy while at the same time bolstering its balance sheet to the benefit of shareholders. Stagwell\'s investment at a premium to our current stock price illustrates the underlying value of our business, their confidence in our agencies and people as well as a clear view of the growth opportunities ahead."

"We made important strides in strengthening our business in 2018, including the fourth quarter, in which we delivered our highest level of net new business wins in two years. The streamlining of costs and refocusing of go-to-market strategies across several of our agencies also sets the Company up for improved performance in 2019."

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

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