MDC PARTNERS INC NEW YORK, July 28, 2016 /PRNewswire/ --
SECOND QUARTER HIGHLIGHTS:
-- Reported revenue increased 0.1% to $337.0 million; Organic revenue
growth of 0.3%, 20 basis points negative impact from decreased billable
pass-through costs
-- Net income attributable to MDC Partners of $1.2 million vs $29.6 million
-- Adjusted EBITDA decreased 11.8% to $41.9 million, with margins of 12.4%
(See Schedules 2 and 3)
-- Company revises 2016 financial guidance to reflect lowered full year
expectations
YEAR-TO-DATE HIGHLIGHTS:
-- Reported revenue increased 1.1% to $646.1 million; Organic revenue
growth of 1.2%, 120 basis point negative impact from decreased billable
pass-through costs
-- Net loss attributable to MDC Partners of ($22.1) million vs. ($2.5)
million
-- Adjusted EBITDA decreased 5.0% to $74.7 million, with margins of 11.6%
(See Schedules 4 and 5)
-- Net New Business wins totaled $36.9 million in Q2 and $56.8 million
year-to-date
(NASDAQ: MDCA) - MDC Partners Inc. ("MDC Partners" or the "Company") today announced financial results for the three and six months ended June 30, 2016.
Scott Kauffman, Chairman and Chief Executive Officer of MDC Partners, said, "This was a challenging quarter for our business. While our financial results in the second quarter were below our expectations, there's no doubt that we have a very strong underlying business that is positioned for meaningful growth in the second half of the year and beyond. Our partners are building deep relationships with blue chip, increasingly global clients, including net new business of $57 million year-to-date. Our media business is beginning to break through, and our partners are attracting innovative talent with several recent significant hires. Importantly, we continue to take strategic actions that are making our business stronger and more efficient. We are confident that the steps we are taking, combined with the strength of our partners, will quickly return us to an attractive run rate, leading to solid shareholder returns."
David Doft, CFO of MDC Partners, said, "We believe that it is prudent to revise our full-year 2016 guidance to reflect our softer-than-anticipated second quarter results. At the midpoint, our annual guidance implies a revenue increase of 5.9% and an Adjusted EBITDA increase of 6.2% as we continue to anticipate that there will be an acceleration in growth in the third and fourth quarters as recently won accounts come online. In addition, our recent payment of approximately $84 million of deferred acquisition consideration in the second quarter was a meaningful step toward strengthening our balance sheet. Notwithstanding our financial results thus far this year, we remain confident in the strength of our business model."
Second Quarter and Year-to-Date Financial Results
Revenue for the second quarter of 2016 was $337.0 million, an increase of 0.1%, compared to $336.6 million in the second quarter of 2015. The effect of foreign currency translation was negative 0.7%, the impact of net acquisitions was positive 0.6%, and the resulting organic revenue growth was 0.3%. Organic revenue growth for the period was negatively impacted by 20 basis points from decreased billable pass-through costs incurred on client's behalf from certain of our partner firms acting as principal.
Net income attributable to MDC Partners in the second quarter of 2016 was $1.2 million compared to $29.6 million in the second quarter of 2015. Diluted income per share from continuing operations attributable to MDC Partners common shareholders for the second quarter of 2016 was $0.02 compared to $0.56 per share in the second quarter of 2015. Adjusted EBITDA for the second quarter of 2016 was $41.9 million, a decrease of 11.8% compared to $47.5 million in the second quarter of 2015. Adjusted EBITDA Available for General Capital Purposes was $16.2 million in the second quarter of 2016, a decrease of 41.5%, compared to $27.8 million in the second quarter of 2015.
Revenue for the first six months of 2016 was $646.1 million, an increase of 1.1%, compared to $638.8 million in the first six months of 2015. The effect of foreign currency translation was negative 1.0%, the impact of net acquisitions was positive 0.9%, and the resulting organic revenue growth was 1.2%. Organic revenue growth for the period was negatively impacted by 120 basis points from decreased billable pass-through costs incurred on client's behalf from certain of our partner firms acting as principal.
Net loss attributable to MDC Partners in the first six months of 2016 was ($22.1) million compared to ($2.5) million in the first six months of 2015. Diluted loss per share from continuing operations attributable to MDC Partners common shareholders for the first six months of 2016 was ($0.44) compared to income of $0.05 per share in the first six months of 2015. Adjusted EBITDA for the first six months of 2016 was $74.7 million, a decrease of 5.0%, compared to $78.6 million in the first six months of 2015. Adjusted EBITDA Available for General Capital Purposes was $29.0 million in the first six months of 2016, a decrease of 23.8%, compared to $38.0 million in the first six months of 2015.
Financial Guidance
Guidance for 2016 is revised as follows:
Prior Revised Implied
2015 2016 2016 Year over Year
Actuals Guidance Guidance Change
------- -------- -------- ------
Revenue $1.326 billion $1.410 - $1.440 billion $1.390 - $1.420 billion +4.8% to +7.1%
Adjusted EBITDA $197.7 million $225 - $235 million $205 - $215 million +3.7% to +8.8%
Implied Adjusted EBITDA Margin 14.9% 15.8% to 16.4% 14.7% to 15.1% -15 to +25 basis points
Adjusted EBITDA Available for $113.4 million $130 - $140 million $110 - $120 million -3.0% to +5.8%
General Capital Purposes
MDC Partners Announces $0.21 per Share Quarterly Cash Dividend
MDC Partners today also announced that its Board of Directors has declared a cash dividend of $0.21 per share on all of its outstanding Class A shares and Class B shares. The quarterly dividend will be payable on or about August 24, 2016, to shareholders of record at the close of business on August 10, 2016.
Conference Call
Management will host a conference call on Thursday, July 28, 2016, at 4:30 p.m. (ET) to discuss results. The conference call will be accessible by dialing 1-412-902-4266 or toll free 1-888-346-6216. An investor presentation has been posted on our website www.mdc-partners.com and may be referred to during the conference call.
A recording of the conference call will be available one hour after the call until 12:00 a.m. (ET), August 4, 2016, by dialing 1-412-317-0088 or toll free 1-877-344-7529 (passcode 10090304), or by visiting our website at www.mdc-partners.com.
About MDC Partners Inc.
MDC Partners is one of the fastest-growing and most influential marketing and communications networks in the world. Its 50+ advertising, public relations, branding, digital, social and event marketing agencies are responsible for some of the most memorable and engaging campaigns for the world's most respected brands. As "The Place Where Great Talent Lives," MDC Partners is known for its unique partnership model, empowering the most entrepreneurial and innovative talent to drive competitive advantage and business growth for clients. By leveraging technology, data analytics, insights, and strategic consulting solutions, MDC Partners drives measurable results and optimizes return on marketing investment for over 1,700 clients worldwide. For more information about MDC Partners and its partner firms, visit our website at www.mdc-partners.com and follow us on Twitter at http://www.twitter.com/mdcpartners.
Non-GAAP Financial Measures
In addition to its reported results, MDC Partners has included in this earnings release certain financial results that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures for the three and six months ended June 30, 2016, and 2015, include the following:
(1) Organic Revenue: "Organic revenue growth" and "organic revenue decline" refer to the positive or negative results, respectively, of the following calculation: (i) the change in revenue during the relevant time period, less (ii) for each business acquired in the current year, the incremental impact on revenue for the comparable period prior to the Company's ownership of such acquired business, less revenue from each business acquired by the Company in the previous year through the twelve month anniversary of the Company's ownership, plus (iii) for each business disposed of in the current year, the incremental impact on revenue for the comparable period after the Company's disposition of such disposed business, plus revenue from each business disposed of by the Company in the previous year through the twelve month anniversary of the Company's disposition, less (iv) foreign exchange impacts.
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
(3) Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that represents operating profit plus depreciation and amortization, stock-based compensation, acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items.
(4) Adjusted EBITDA Available for General Capital Purposes: Adjusted EBITDA Available for General Capital Purposes is a non-GAAP measure that represents Adjusted EBITDA less net income attributable to the noncontrolling interests, capital expenditures net of landlord reimbursements, cash taxes, and cash interest, net & other.
(5) Net Bank Debt or Net Debt: Debt due pertaining to the revolving credit facility plus debt pertaining to the Senior Notes less total cash and cash equivalents.
Included in this earnings release are tables reconciling MDC Partners' reported results to arrive at certain of these non-GAAP financial measures.
This press release contains forward-looking statements. The Company's representatives may also make forward-looking statements orally from time to time. Statements in this press release that are not historical facts, including statements about the Company's beliefs and expectations, earnings guidance, recent business and economic trends, potential acquisitions, and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:
-- risks associated with the SEC's ongoing investigation and the related
class action litigation claims;
-- risks associated with severe effects of international, national and
regional economic downturn;
-- the Company's ability to attract new clients and retain existing
clients;
-- the spending patterns and financial success of the Company's clients;
-- the Company's ability to retain and attract key employees;
-- the Company's ability to remain in compliance with its debt agreements
and the Company's ability to finance its contingent payment obligations
when due and payable, including but not limited to those relating to
redeemable noncontrolling interests and deferred acquisition
consideration;
-- the successful completion and integration of acquisitions which
complement and expand the Company's business capabilities; and
-- foreign currency fluctuations.
The Company's business strategy includes ongoing efforts to engage in acquisitions of ownership interests in entities in the marketing communications services industry. The Company intends to finance these acquisitions by using available cash from operations, from borrowings under its credit facility and through incurrence of bridge or other debt financing, any of which may increase the Company's leverage ratios, or by issuing equity, which may have a dilutive impact on existing shareholders proportionate ownership. At any given time the Company may be engaged in a number of discussions that may result in one or more acquisitions. These opportunities require confidentiality and may involve negotiations that require quick responses by the Company. Although there is uncertainty that any of these discussions will result in definitive agreements or the completion of any transactions, the announcement of any such transaction may lead to increased volatility in the trading price of the Company's securities.
Investors should carefully consider these risk factors and the additional risk factors outlined in more detail in the Annual Report on Form 10-K under the caption "Risk Factors" and in the Company's other SEC filings.
SCHEDULE 1
MDC PARTNERS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ in 000s, except share and per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2016 2015 2016 2015
---- ---- ---- ----
Revenue $337,047 $336,606 $646,089 $638,828
Operating Expenses:
Cost of services sold 228,835 225,042 440,281 435,461
Office and general expenses 72,709 53,075 150,537 127,383
Depreciation and amortization 11,436 14,007 22,656 26,307
312,980 292,124 613,474 589,151
------- ------- ------- -------
Operating profit 24,067 44,482 32,615 49,677
Other Income (Expense):
Other, net 26 4,348 15,538 (13,692)
Interest expense and finance charges (17,174) (13,288) (32,749) (28,384)
Loss on redemption of notes - - (33,298) -
Interest income 203 105 381 224
--- --- --- ---
Income (loss) from continuing operations before income taxes
and equity in earnings of non-consolidated affiliates 7,122 35,647 (17,513) 7,825
Income tax expense 4,405 4,679 2,433 625
----- ----- ----- ---
Income (loss) from continuing operations before equity in
earnings of non-consolidated affiliates 2,717 30,968 (19,946) 7,200
Equity in earnings (loss) of non-consolidated affiliates (290) 104 (61) 455
---- --- --- ---
Income (loss) from continuing operations 2,427 31,072 (20,007) 7,655
Income (loss) from discontinued operations attributable to
MDC Partners Inc., net of taxes - 1,329 - (4,965)
--- ----- --- ------
Net income (loss) 2,427 32,401 (20,007) 2,690
Net income attributable to the noncontrolling interests (1,254) (2,841) (2,113) (5,221)
------ ------ ------ ------
Net income (loss) attributable to MDC Partners Inc. $1,173 $29,560 $(22,120) $(2,531)
====== ======= ======== =======
Income (Loss) Per Common Share:
Basic:
Income (loss) from continuing operations attributable to
MDC Partners Inc. common shareholders $0.02 $0.57 $(0.44) $0.05
Discontinued operations attributable to MDC
Partners Inc. common shareholders - 0.03 - (0.10)
--- ---- --- -----
Net income (loss) attributable to MDC Partners Inc.
common shareholders $0.02 $0.60 $(0.44) $(0.05)
===== ===== ====== ======
Diluted:
Income (loss) from continuing operations attributable to
MDC Partners Inc. common shareholders $0.02 $0.56 $(0.44) $0.05
Discontinued operations attributable to MDC
Partners Inc. common shareholders - 0.03 - (0.10)
--- ---- --- -----
Net income (loss) attributable to MDC Partners Inc.
common shareholders $0.02 $0.59 $(0.44) $(0.05)
===== ===== ====== ======
Weighted Average Number of Common Shares Outstanding:
Basic 50,322,757 49,859,300 50,162,654 49,807,419
Diluted 50,703,548 50,399,936 50,162,654 50,365,119
SCHEDULE 2
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Three Months Ended June 30, 2016
Advertising and
Communications Corporate Total
-------------- --------- -----
Revenue $337,047 $ - $337,047
======== ============================= ========
Net income attributable to MDC Partners Inc. $1,173
Adjustments to reconcile to Operating profit (loss):
Net income attributable to the noncontrolling interests 1,254
Loss from discontinued operations attributable to
MDC Partners Inc., net of taxes -
Equity in losses of non-consolidated affiliates 290
Income tax expense 4,405
Interest expense and finance charges, net 16,971
Loss on redemption of notes -
Other, net (26)
---
Operating profit (loss) $36,868 $(12,801) $24,067
margin 10.9% 7.1%
Additional adjustments to reconcile to Adjusted EBITDA:
Depreciation and amortization 10,926 510 11,436
Stock-based compensation 4,880 650 5,530
Acquisition deal costs 402 505 907
Deferred acquisition consideration adjustments (299) - (299)
Distributions from non-consolidated affiliates ** - - -
Other items, net *** - 252 252
--- --- ---
Adjusted EBITDA * $52,777 $(10,884) $41,893
margin 15.7% 12.4%
* Adjusted EBITDA is a non-GAAP measure, but as shown above it represents operating profit (loss) plus depreciation and amortization, stock-based
compensation, acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items.
** Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from
the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
*** Other items, net includes (i) one-time gains related to the former CEO's repayment to the Company for certain perquisites and expenses, (ii) legal fees and
related expenses, net of insurance proceeds, relating to the ongoing SEC investigation and related class action litigation claims, (iii) one-time charge for the
balance of prior cash bonus award amounts paid to the former CEO and CAO that will not be recovered, and (iv) write-off of certain assets related to the
CEO and CAO termination. See Schedule 9 for reconciliation of amounts.
SCHEDULE 3
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Three Months Ended June 30, 2015
Advertising and
Communications Corporate Total
-------------- --------- -----
Revenue $336,606 $ - $336,606
======== ============================= ========
Net income attributable to MDC Partners Inc. $29,560
Adjustments to reconcile to Operating profit (loss):
Net income attributable to the noncontrolling interests 2,841
Income from discontinued operations attributable to
MDC Partners Inc., net of taxes (1,329)
Equity in earnings of non-consolidated affiliates (104)
Income tax expense 4,679
Interest expense and finance charges, net 13,183
Other, net (4,348)
------
Operating profit (loss) $54,372 $(9,890) $44,482
margin 16.2% 13.2%
Additional adjustments to reconcile to Adjusted EBITDA:
Depreciation and amortization 13,554 453 14,007
Stock-based compensation 4,863 451 5,314
Acquisition deal costs 255 587 842
Deferred acquisition consideration adjustments (12,741) - (12,741)
Distributions from non-consolidated affiliates ** 176 112 288
Other items, net *** - (4,718) (4,718)
------
Adjusted EBITDA * $60,479 $(13,005) $47,474
margin 18.0% 14.1%
* Adjusted EBITDA is a non-GAAP measure, but as shown above it represents operating profit (loss) plus depreciation and amortization, stock-based
compensation, acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items.
** Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from
the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
*** Other items, net includes (i) one-time gains related to the former CEO's repayment to the Company for certain perquisites and expenses, (ii) legal fees and
related expenses, net of insurance proceeds, relating to the ongoing SEC investigation and related class action litigation claims, (iii) one-time charge for the
balance of prior cash bonus award amounts paid to the former CEO and CAO that will not be recovered, and (iv) write-off of certain assets related to the
CEO and CAO termination. See Schedule 9 for reconciliation of amounts.
SCHEDULE 4
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Six Months Ended June 30, 2016
Advertising and
Communications Corporate Total
-------------- --------- -----
Revenue $646,089 $ - $646,089
======== ============================= ========
Net loss attributable to MDC Partners Inc. $(22,120)
Adjustments to reconcile to Operating profit (loss):
Net income attributable to the noncontrolling interests 2,113
Loss from discontinued operations attributable to
MDC Partners Inc., net of taxes -
Equity in losses of non-consolidated affiliates 61
Income tax expense 2,433
Interest expense and finance charges, net 32,368
Loss on redemption of notes 33,298
Other, net (15,538)
-------
Operating profit (loss) $58,546 $(25,931) $32,615
margin 9.1% 5.0%
Additional adjustments to reconcile to Adjusted EBITDA:
Depreciation and amortization 21,749 907 22,656
Stock-based compensation 8,761 1,454 10,215
Acquisition deal costs 467 993 1,460
Deferred acquisition consideration adjustments 6,028 - 6,028
Distributions from non-consolidated affiliates ** - - -
Other items, net *** - 1,738 1,738
--- ----- -----
Adjusted EBITDA * $95,551 $(20,839) $74,712
margin 14.8% 11.6%
* Adjusted EBITDA is a non-GAAP measure, but as shown above it represents operating profit (loss) plus depreciation and amortization, stock-based compensation,
acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items.
** Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from
the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
*** Other items, net includes (i) one-time gains related to the former CEO's repayment to the Company for certain perquisites and expenses, (ii) legal fees and
related expenses, net of insurance proceeds, relating to the ongoing SEC investigation and related class action litigation claims, (iii) one-time charge for the
balance of prior cash bonus award amounts paid to the former CEO and CAO that will not be recovered, and (iv) write-off of certain assets related to the
CEO and CAO termination. See Schedule 9 for reconciliation of amounts.
SCHEDULE 5
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Six Months Ended June 30, 2015
Advertising and
Communications Corporate Total
-------------- --------- -----
Revenue $638,828 $ - $638,828
======== ============================= ========
Net loss attributable to MDC Partners Inc. $(2,531)
Adjustments to reconcile to Operating profit (loss):
Net income attributable to the noncontrolling interests 5,221
Loss from discontinued operations attributable to
MDC Partners Inc., net of taxes 4,965
Equity in earnings of non-consolidated affiliates (455)
Income tax expense 625
Interest expense and finance charges, net 28,160
Other, net 13,692
------
Operating profit (loss) $80,385 $(30,708) $49,677
margin 12.6% 7.8%
Additional adjustments to reconcile to Adjusted EBITDA:
Depreciation and amortization 25,408 899 26,307
Stock-based compensation 8,363 1,396 9,759
Acquisition deal costs 539 1,177 1,716
Deferred acquisition consideration adjustments (10,493) - (10,493)
Distributions from non-consolidated affiliates ** 510 120 630
Other items, net *** - 1,044 1,044
Adjusted EBITDA * $104,712 $(26,072) $78,640
margin 16.4% 12.3%
* Adjusted EBITDA is a non-GAAP measure, but as shown above it represents operating profit (loss) plus depreciation and amortization, stock-based compensation,
acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items.
** Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from
the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
*** Other items, net includes (i) one-time gains related to the former CEO's repayment to the Company for certain perquisites and expenses, (ii) legal fees and
related expenses, net of insurance proceeds, relating to the ongoing SEC investigation and related class action litigation claims, (iii) one-time charge for the
balance of prior cash bonus award amounts paid to the former CEO and CAO that will not be recovered, and (iv) write-off of certain assets related to the
CEO and CAO termination. See Schedule 9 for reconciliation of amounts.
SCHEDULE 6
MDC PARTNERS INC.
UNAUDITED ADJUSTED EBITDA AVAILABLE FOR GENERAL CAPITAL PURPOSES
(US$ in 000s)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2016 2015 2016 2015
---- ---- ---- ----
Adjusted EBITDA (1) $41,893 $47,474 $74,712 $78,640
Net income attributable to the noncontrolling interests (1,254) (2,841) (2,113) (5,221)
Capital expenditures, net (2) (7,038) (3,812) (12,577) (9,112)
Cash taxes (664) (175) (807) (715)
Cash interest, net & other (3) (16,689) (12,893) (30,219) (25,544)
------- ------- ------- -------
Adjusted EBITDA Available for General Capital Purposes (4) $16,248 $27,753 $28,996 $38,048
======= ======= ======= =======
(1) Adjusted EBITDA is a non GAAP measure. See schedules 2 through 5 for a reconciliation of Net income (loss) to Adjusted EBITDA.
(2) Capital expenditures, net represents capital expenditures net of landlord reimbursements. See Schedule 9 for reconciliation of amounts.
(3) Cash interest, net & other represents the cash interest paid for our borrowings, less interest income, adjusted for the quarterly accrual of cash interest under our Senior Notes. See Schedule 9 for reconciliation of amounts.
(4) Adjusted EBITDA Available for General Capital Purposes is a non-GAAP measure, and represents funds available for repayment of debt, acquisitions, deferred acquisition consideration, dividends, and other general corporate initiatives.
SCHEDULE 7
MDC PARTNERS INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US$ in 000s)
June 30, December 31,
2016 2015
---- ----
Assets
Current Assets:
Cash and cash equivalents $16,062 $61,458
Cash held in trusts 5,345 5,122
Accounts receivable, net 421,270 361,044
Expenditures billable to clients 51,708 44,012
Other current assets 51,327 37,109
------ ------
Total Current Assets 545,712 508,745
Fixed assets, net 66,763 63,557
Investment in non-consolidated
affiliates 6,392 6,263
Goodwill 876,644 870,301
Other intangible assets, net 61,418 72,382
Deferred tax assets 20,159 15,367
Other assets 39,065 41,010
------ ------
Total Assets $1,616,153 $1,577,625
========== ==========
Liabilities, Redeemable
Noncontrolling Interests and
Shareholders' Deficit
Current Liabilities:
Accounts payable $308,909 $359,568
Trust liability 5,345 5,122
Accruals and other liabilities 236,986 297,964
Advance billings 159,279 119,100
Current portion of long-term debt 361 470
Current portion of deferred
acquisition consideration 102,985 130,400
------- -------
Total Current Liabilities 813,865 912,624
Long-term debt, less current portion 987,381 728,413
Long-term portion of deferred
acquisition consideration 129,059 216,704
Other liabilities 45,003 44,905
Deferred tax liabilities 98,191 92,581
Total Liabilities 2,073,499 1,995,227
--------- ---------
Redeemable Noncontrolling Interests 65,367 69,471
------ ------
Shareholders' Deficit
Common shares 275,883 269,842
Shares to be issued 2,360 -
Charges in excess of capital (307,323) (315,261)
Accumulated deficit (549,110) (526,990)
Accumulated other comprehensive
income (loss) (6,227) 6,257
------ -----
MDC Partners Inc. Shareholders'
Deficit (584,417) (566,152)
Noncontrolling Interests 61,704 79,079
------ ------
Total Shareholders' Deficit (522,713) (487,073)
-------- --------
Total Liabilities, Redeemable
Noncontrolling
Interests and Shareholders' Deficit $1,616,153 $1,577,625
========== ==========
SCHEDULE 8
MDC PARTNERS INC.
UNAUDITED SUMMARY CASH FLOW DATA
(US$ in 000s)
Six Months Ended June 30,
2016 2015
---- ----
Cash flows provided
by (used in)
continuing operating
activities $(138,497) $69,478
Discontinued
operations - (995)
---
Net cash provided by
(used in) operating
activities (138,497) 68,483
-------- ------
Cash flows used in
continuing investing
activities (16,762) (36,073)
Discontinued
operations - 18,070
--- ------
Net cash used in
investing activities (16,762) (18,003)
------- -------
Cash flows provided
by (used in)
continuing financing
activities 109,672 (129,105)
Discontinued
operations - (40)
--- ---
Net cash provided by
(used in) financing
activities 109,672 (129,145)
------- --------
Effect of exchange
rate changes on cash
and cash equivalents 191 168
--- ---
Net decrease in cash
and cash equivalents $(45,396) $(78,497)
======== ========
SCHEDULE 9
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF COMPONENTS OF NON-GAAP MEASURES
(US$ in 000s)
2015 2016
---- ----
Q1 Q2 Q3 Q4 FY Q1 Q2 YTD
--- --- --- --- --- --- --- ---
OTHER ITEMS, NET
SEC investigation and class action litigation expenses $5,762 $3,882 $2,722 $1,340 $13,706 $1,486 $1,359 $2,845
D&O insurance proceeds - - - (1,000) (1,000) - (1,107) (1,107)
CEO repayment for certain perquisites and expenses - (8,600) (1,877) (808) (11,285) - - -
CEO and CAO termination related expenses - - 6,906 - 6,906 - - -
Total other items, net $5,762 $(4,718) $7,751 $(468) $8,327 $1,486 $252 $1,738
====== ======= ====== ===== ====== ====== ==== ======
2015 2016
---- ----
Q1 Q2 Q3 Q4 FY Q1 Q2 YTD
--- --- --- --- --- --- --- ---
CAPITAL EXPENDITURES, NET
Capital expenditures $(5,656) $(3,848) $(8,161) $(5,910) $(23,575) $(5,539) $(7,909) $(13,448)
Landlord reimbursements 356 36 1,259 805 2,456 - 871 871
Total capital expenditures, net $(5,300) $(3,812) $(6,902) $(5,105) $(21,119) $(5,539) $(7,038) $(12,577)
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2015 2016
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Q1 Q2 Q3 Q4 FY Q1 Q2 YTD
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CASH INTEREST, NET & OTHER
Cash interest paid $(367) $(25,401) $(590) $(26,308) $(52,666) $(25,703) $(1,212) $(26,915)
Bond interest accrual adjustment (12,403) 12,403 (12,403) 12,403 - 11,995 (15,680) (3,685)
Adjusted cash interest paid (12,770) (12,998) (12,993) (13,905) (52,666) (13,708) (16,892) (30,600)
Interest income 119 105 114 129 467 178 203 381
Other - - - - - - - -
Total cash interest, net & other $(12,651) $(12,893) $(12,879) $(13,776) $(52,199) $(13,530) $(16,689) $(30,219)
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CONTACT:
Matt Chesler, CFA
VP, Investor Relations
646-412-6877
mchesler@mdc-partners.com
http://photos.prnewswire.com/prnvar/20120221/NY57031LOGO
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mdc-partners-inc-reports-results-for-the-three-and-six-months-ended-june-30-2016-300305859.html
SOURCE MDC Partners Inc.
