UPDATE: MDC Partners (MDCA) Reports Q4 EPS Loss of $0.15, Revenues Beat

MDC Partners (NASDAQ: MDCA) reported Q4 EPS of ($0.15). Revenue for the quarter came in at $382 million versus the consensus estimate of $375.3 million.

FOURTH QUARTER & 2019 HIGHLIGHTS:

• Revenue of $382.0 million in the fourth quarter of 2019 versus $393.7 million in the prior period, a decline of 3.0%; and $1.42 billion in 2019 versus $1.48 billion in the prior year, a decline of 4.1%.
• Organic revenue declined 1.5% in the fourth quarter of 2019 and 3.1% in 2019.
• Net loss attributable to MDC Partners common shareholders was $10.5 million in the fourth quarter of 2019 versus $83.7 million in the prior period.
• Net loss attributable to MDC Partners common shareholders was $17.0 million in 2019 versus $132.1 million in the prior period.
• Adjusted EBITDA of $57.0 million in the fourth quarter of 2019 versus $52.0 million in the prior period, an increase of 9.8%. Adjusted EBITDA Margin of 14.9% in the fourth quarter of 2019, compared with 13.2% in the prior period.
• Adjusted EBITDA of $174.2 million in 2019 versus $162.6 million in the prior year, an increase of 7.1%. Adjusted EBITDA Margin of 12.3% in 2019, compared with 11.0% in the prior year.
• Excluding Kingsdale, Adjusted EBITDA increased 14.3% in the fourth quarter and 13.5% in 2019 compared with the prior year periods.
• Covenant EBITDA (LTM) of $184.2 million as of the end of the fourth quarter of 2019 versus $172.6 million as of the end of the fourth quarter of 2018, an improvement of 6.7%. (Refer to Schedule 7 and Schedule 8)
• Net New Business wins totaled a positive $37.2 million in the fourth quarter and $93.6 million in 2019.

"We are beginning to see the benefits of the strategic plan we implemented in 2019. In the fourth quarter, we delivered sequential revenue growth of 11% while maintaining our focus on reducing costs across the organization, resulting in improved profitability and Covenant EBITDA near the top of our guided range at $184.2 million," said Mark Penn, Chairman and Chief Executive Officer of MDC Partners. "Net new business remained strong in the quarter at $37 million and over $100 million for the last nine months of 2019 since my arrival. In addition to our operational improvements across the organization that will continue to drive results, with the recent announcements of the Anomaly Alliance and Constellation, we now have six tentpole partner networks designed to enhance collaboration across disciplines, benefiting our clients and agencies alike."

Frank Lanuto, Chief Financial Officer, added, "We delivered a solid performance in the fourth quarter, reporting $57 million in Adjusted EBITDA and over $92 million in cash flow from operations in the quarter, ending the year with $107 million in cash and no revolver borrowings, reducing our leverage to 4.5x."

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

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