MDC Partners (MDCA) Reports Q3 Loss of $3.23 on Revenues of $328.2M

March 2, 2021 7:15 AM EST
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Price: $3.68 -0.54%

Financial Fact:
Operating profit: -10.75M

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MDC Partners (NASDAQ: MDCA) reported Q3 EPS of ($3.23), versus ($0.15) reported last year. Revenue for the quarter came in at $328.2 million, versus $381.98 million reported last year.

FOURTH QUARTER & 2020 HIGHLIGHTS:

  • Revenue of $328.2 million in the fourth quarter versus $382.0 million in the prior year period, a decline of 14.1%; and $1.20 billion in 2020 versus $1.42 billion in the prior year, a decline of 15.3%.
  • Sequential revenue growth of 15.8% from the third quarter of 2020.
  • Organic revenue declined 13.7% in the fourth quarter and 13.9% in 2020.
  • Net loss attributable to MDC Partners Inc. common shareholders was $243.2 million (inclusive of principally non-cash impairment and other charges of $96.4 million and a $130 million non-cash income tax valuation allowance) in 2020 versus a net loss of $17.6 million in the prior year.
  • Adjusted EBITDA of $177.3 million in 2020 versus $174.2 million in the prior year, an increase of 1.8%. Adjusted EBITDA Margin of 14.8% in 2020, increasing 250 basis points from 12.3% in the prior year.
  • Excluding the sales of Kingsdale and Sloane, Adjusted EBITDA increased 5.2% in 2020 compared with the prior year.
  • Covenant EBITDA of $190.1 million in 2020 versus $180.5 million in 2019, an improvement of 5.3%.
  • Net New Business wins totaled $29.5 million in the fourth quarter and $90.3 million in 2020.

"MDC delivered 15.8% sequential revenue growth from the third quarter of 2020, $190 million of Covenant EBITDA in 2020, up 5.3% from prior year and $90 million of net new business in 2020," said Mark Penn, Chairman and Chief Executive Officer of MDC Partners. "The business continued to see a rebound from pandemic lows, with strong sequential improvement in revenue driven by double-digit growth in most client sectors led by Consumer Products, Technology and Healthcare. While COVID-19 headwinds remain, we expect the rebound to continue into 2021, with 7 to 9% organic revenue growth for the year."

"Building upon MDC's transformation over the last two years, we recently announced a strategic business combination with The Stagwell Group, which unites the award-winning creative talent of MDC's network with the advanced technology platform of Stagwell, unleashing the power of Talent & Technology around the world."

Frank Lanuto, Chief Financial Officer, added, "Despite lower revenue in 2020, we expanded Adjusted EBITDA margins by 250 basis points. We continued to lower our leverage, down to 4.4x, and delivered $35 million in cash flow from operations in the quarter, ending the year with $61 million in cash and no revolver borrowings."

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



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