falsedesktopMDCA2020-09-30000087688320000033{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated Filer\t☐\tAccelerated Filer\t☒\nNon-accelerated Filer\t☐\tSmaller reporting company\t☒\nEmerging growth company\t☐\t\t\n", "q10k_tbl_1": "\t\tPage\n\tPART I. FINANCIAL INFORMATION\t\nItem 1.\tFinancial Statements\t4\n\tUnaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30 2020 and 2019\t4\n\tUnaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30 2020 and 2019\t5\n\tUnaudited Condensed Consolidated Balance Sheets as of September 30 2020 and December 31 2019\t6\n\tUnaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t7\n\tUnaudited Condensed Consolidated Statements of Shareholders' Deficit for the Three and Nine Months Ended September 30 2020 and 2019\t8\n\tNotes to Unaudited Condensed Consolidated Financial Statements\t10\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t27\nItem 3.\tQuantitative and Qualitative Disclosures about Market Risk\t49\nItem 4.\tControls and Procedures\t50\n\tPART II. OTHER INFORMATION\t\nItem 1.\tLegal Proceedings\t51\nItem 1A.\tRisk Factors\t51\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t51\nItem 3.\tDefaults Upon Senior Securities\t52\nItem 4.\tMine Safety Disclosures\t52\nItem 5.\tOther Information\t53\nItem 6.\tExhibits\t54\nSignatures\t\t54\n", "q10k_tbl_2": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenue:\t\t\t\t\nServices\t283423\t342907\t870843\t1033828\nOperating Expenses:\t\t\t\t\nCost of services sold\t172531\t222448\t560856\t700351\nOffice and general expenses\t72512\t79726\t205075\t234120\nDepreciation and amortization\t9332\t9368\t27437\t28869\nImpairment and other losses\t159\t1944\t19159\t1944\n\t254534\t313486\t812527\t965284\nOperating income\t28889\t29421\t58316\t68544\nOther Income (Expenses):\t\t\t\t\nInterest expense and finance charges net\t(15266)\t(16110)\t(46819)\t(49284)\nForeign exchange gain (loss)\t2159\t(3973)\t(7256)\t4401\nOther net\t505\t(431)\t22723\t(4559)\n\t(12602)\t(20514)\t(31352)\t(49442)\nIncome before income taxes and equity in earnings of non-consolidated affiliates\t16287\t8907\t26964\t19102\nIncome tax expense\t1452\t3457\t7029\t6292\nIncome before equity in earnings of non-consolidated affiliates\t14835\t5450\t19935\t12810\nEquity in earnings (losses) of non-consolidated affiliates\t(31)\t63\t(829)\t352\nNet income\t14804\t5513\t19106\t13162\nNet income attributable to the noncontrolling interest\t(10728)\t(7265)\t(14620)\t(10737)\nNet income (loss) attributable to MDC Partners Inc.\t4076\t(1752)\t4486\t2425\nAccretion on and net income allocated to convertible preference shares\t(3716)\t(3306)\t(10528)\t(8931)\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t360\t(5058)\t(6042)\t(6506)\nIncome (loss) Per Common Share:\t\t\t\t\nBasic\t\t\t\t\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t0\t(0.07)\t(0.08)\t(0.10)\nDiluted\t\t\t\t\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t0\t(0.07)\t(0.08)\t(0.10)\nWeighted Average Number of Common Shares Outstanding:\t\t\t\t\nBasic\t73207619\t72044480\t72713257\t68154306\nDiluted\t73476779\t72044480\t72713257\t68154306\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nComprehensive Income (Loss)\t\t\t\t\nNet income\t14804\t5513\t19106\t13162\nOther comprehensive income (loss) net of applicable tax:\t\t\t\t\nForeign currency translation adjustment\t2375\t(1461)\t11171\t(7505)\nOther comprehensive income (loss)\t2375\t(1461)\t11171\t(7505)\nComprehensive income for the period\t17179\t4052\t30277\t5657\nComprehensive income attributable to the noncontrolling interests\t(10962)\t(6969)\t(14755)\t(10830)\nComprehensive income (loss) attributable to MDC Partners Inc.\t6217\t(2917)\t15522\t(5173)\n", "q10k_tbl_4": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nCurrent Assets:\t\t\nCash and cash equivalents\t37075\t106933\nAccounts receivable less allowance for doubtful accounts of $3703 and $3304\t403636\t449288\nExpenditures billable to clients\t21884\t30133\nOther current assets\t67585\t35613\nTotal Current Assets\t530180\t621967\nFixed assets at cost less accumulated depreciation of $138859 and $129579\t87908\t81054\nRight of use assets - operating leases\t227362\t223622\nGoodwill\t710013\t731691\nOther intangible assets net\t46600\t54893\nDeferred tax assets\t82576\t84900\nOther assets\t21493\t30179\nTotal Assets\t1706132\t1828306\nLIABILITIES REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' DEFICIT\t\t\nCurrent Liabilities:\t\t\nAccounts payable\t128643\t200148\nAccruals and other liabilities\t323414\t353575\nAdvance billings\t157101\t171742\nCurrent portion of lease liabilities - operating leases\t40038\t48659\nCurrent portion of deferred acquisition consideration\t39321\t45521\nTotal Current Liabilities\t688517\t819645\nLong-term debt\t860422\t887630\nLong-term portion of deferred acquisition consideration\t6824\t29699\nLong-term lease liabilities - operating leases\t257107\t219163\nOther liabilities\t38439\t25771\nTotal Liabilities\t1851309\t1981908\nRedeemable Noncontrolling Interests\t25172\t36973\nCommitments Contingencies and Guarantees (Note 9)\t\t\nShareholders' Deficit:\t\t\nConvertible preference shares 145000 authorized issued and outstanding at September 30 2020 and December 31 2019\t152746\t152746\nCommon stock and other paid-in capital\t106037\t101469\nAccumulated deficit\t(476293)\t(480779)\nAccumulated other comprehensive loss (income)\t6768\t(4269)\nMDC Partners Inc. Shareholders' Deficit\t(210742)\t(230833)\nNoncontrolling interests\t40393\t40258\nTotal Shareholders' Deficit\t(170349)\t(190575)\nTotal Liabilities Redeemable Noncontrolling Interests and Shareholders' Deficit\t1706132\t1828306\n", "q10k_tbl_5": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t19106\t13162\nAdjustments to reconcile net income to cash used in operating activities:\t\t\nStock-based compensation\t10568\t12632\nDepreciation and amortization\t27437\t28869\nImpairment and other losses\t19159\t1944\nAdjustment to deferred acquisition consideration\t515\t(3627)\nDeferred income taxes\t2263\t6292\nGain on sale of assets and other\t(4199)\t(2649)\nChanges in working capital:\t\t\nAccounts receivable\t43708\t835\nExpenditures billable to clients\t8248\t3716\nPrepaid expenses and other current assets\t1991\t3280\nAccounts payable accruals and other current liabilities\t(109256)\t(96527)\nAcquisition related payments\t(7514)\t(4816)\nAdvance billings\t(14517)\t31049\nNet cash used in operating activities\t(2491)\t(5840)\nCash flows from investing activities:\t\t\nCapital expenditures\t(11474)\t(13786)\nProceeds from sale of assets\t19616\t23050\nAcquisitions net of cash acquired\t(1816)\t(5778)\nOther\t(1777)\t(179)\nNet cash provided by investing activities\t4549\t3307\nCash flows from financing activities:\t\t\nRepayments of borrowings under revolving credit facility\t(456428)\t(1172909)\nProceeds from borrowings under revolving credit facility\t456428\t1112857\nProceeds from issuance of common and convertible preference shares net of issuance costs\t0\t98620\nAcquisition related payments\t(35331)\t(30155)\nDistributions to noncontrolling interests and other\t(14639)\t(10615)\nRepurchase of Senior Notes\t(21999)\t0\nNet cash used in financing activities\t(71969)\t(2202)\nEffect of exchange rate changes on cash cash equivalents and cash held in trusts\t53\t8\nNet decrease in cash and cash equivalents including cash classified within current assets held for sale\t(69858)\t(4727)\nChange in cash and cash equivalents held in trusts classified within held for sale\t0\t(3307)\nChange in cash and cash equivalents classified within assets held for sale\t0\t4441\nNet decrease in cash and cash equivalents\t(69858)\t(3593)\nCash and cash equivalents at beginning of period\t106933\t30873\nCash and cash equivalents at end of period\t37075\t27280\nSupplemental disclosures:\t\t\nCash income taxes paid\t2700\t3631\nCash interest paid\t29311\t32525\n", "q10k_tbl_6": "\tThree Months Ended\t\t\t\t\t\t\t\t\n\tSeptember 30 2020\t\t\t\t\t\t\t\t\n\tConvertible Preference Shares\t\tCommon Shares\tCommon Stock and Other Paid-in\tAccumulated Deficit\tAccumulated Other Comprehensive Income (Loss)\tMDC Partners Inc. Shareholders' Deficit\tNoncontrolling Interests\tTotal Shareholder's Deficit\n\tShares\tAmount\tShares\tCapital\t\t\nBalance at June 30 2020\t145000\t152746\t72587390\t98234\t(480368)\t4627\t(224761)\t40158\t(184603)\nNet income attributable to MDC Partners Inc.\t0\t0\t0\t0\t4076\t0\t4076\t0\t4076\nOther comprehensive income\t0\t0\t0\t0\t0\t2141\t2141\t234\t2375\nVesting of restricted awards\t0\t0\t1047423\t0\t0\t0\t0\t0\t0\nShares acquired and cancelled\t0\t0\t(80120)\t(129)\t0\t0\t(129)\t0\t(129)\nStock-based compensation\t0\t0\t0\t4210\t0\t0\t4210\t0\t4210\nChanges in redemption value of redeemable noncontrolling interests\t0\t0\t0\t1574\t0\t0\t1574\t0\t1574\nBusiness acquisitions and step-up transactions net of tax\t0\t0\t0\t2129\t0\t0\t2129\t0\t2129\nOther\t0\t0\t0\t19\t(1)\t0\t18\t1\t19\nBalance at September 30 2020\t145000\t152746\t73554693\t106037\t(476293)\t6768\t(210742)\t40393\t(170349)\n", "q10k_tbl_7": "\tNine Months Ended\t\t\t\t\t\t\t\t\n\tSeptember 30 2020\t\t\t\t\t\t\t\t\n\tConvertible Preference Shares\t\tCommon Shares\tCommon Stock and Other Paid-in\tAccumulated Deficit\tAccumulated Other Comprehensive Income (Loss)\tMDC Partners Inc. Shareholders' Deficit\tNoncontrolling Interests\tTotal Shareholder's Deficit\n\tShares\tAmount\tShares\tCapital\t\t\nBalance at December 31 2019\t145000\t152746\t72154603\t101469\t(480779)\t(4269)\t(230833)\t40258\t(190575)\nNet income attributable to MDC Partners Inc.\t0\t0\t0\t0\t4486\t0\t4486\t0\t4486\nOther comprehensive income\t0\t0\t0\t0\t0\t11036\t11036\t135\t11171\nVesting of restricted awards\t0\t0\t1807984\t0\t0\t0\t0\t0\t0\nShares acquired and cancelled\t0\t0\t(407894)\t(861)\t0\t0\t(861)\t0\t(861)\nStock-based compensation\t0\t0\t0\t5243\t0\t0\t5243\t0\t5243\nChanges in redemption value of redeemable noncontrolling interests\t0\t0\t0\t(1056)\t0\t0\t(1056)\t0\t(1056)\nBusiness acquisitions and step-up transactions net of tax\t0\t0\t0\t1626\t0\t0\t1626\t0\t1626\nOther\t0\t0\t0\t(384)\t0\t1\t(383)\t0\t(383)\nBalance at September 30 2020\t145000\t152746\t73554693\t106037\t(476293)\t6768\t(210742)\t40393\t(170349)\n", "q10k_tbl_8": "\tThree Months Ended\t\t\t\t\t\t\t\t\n\tSeptember 30 2019\t\t\t\t\t\t\t\t\n\tConvertible Preference Shares\t\tCommon Shares\tCommon Stock and Other Paid-in\tAccumulated Deficit\tAccumulated Other Comprehensive Income (Loss)\tMDC Partners Inc. Shareholders' Deficit\tNoncontrolling Interests\tTotal Shareholder's Deficit\n\tShares\tAmount\tShares\tCapital\t\t\nBalance at June 30 2019\t145000\t152746\t71947743\t97455\t(471349)\t(1713)\t(222861)\t40261\t(182600)\nNet loss attributable to MDC Partners Inc.\t0\t0\t0\t0\t(1752)\t0\t(1752)\t0\t(1752)\nOther comprehensive loss\t0\t0\t0\t0\t0\t(1165)\t(1165)\t(296)\t(1461)\nVesting of restricted awards\t0\t0\t372953\t0\t0\t0\t0\t0\t0\nShares acquired and cancelled\t0\t0\t(174279)\t(499)\t0\t0\t(499)\t0\t(499)\nStock-based compensation\t0\t0\t0\t1409\t0\t0\t1409\t0\t1409\nChanges in redemption value of redeemable noncontrolling interests\t0\t0\t0\t767\t0\t0\t767\t0\t767\nBusiness acquisitions and step-up transactions net of tax\t0\t0\t0\t(648)\t0\t0\t(648)\t0\t(648)\nChanges in ownership interest\t0\t0\t0\t(109)\t0\t0\t(109)\t0\t(109)\nOther\t0\t0\t0\t(11)\t(5)\t0\t(16)\t(9)\t(25)\nBalance at September 30 2019\t145000\t152746\t72146417\t98364\t(473106)\t(2878)\t(224874)\t39956\t(184918)\n", "q10k_tbl_9": "\tNine Months Ended\t\t\t\t\t\t\t\t\n\tSeptember 30 2019\t\t\t\t\t\t\t\t\n\tConvertible Preference Shares\t\tCommon Shares\tCommon Stock and Other Paid-in\tAccumulated Deficit\tAccumulated Other Comprehensive Income\tMDC Partners Inc. Shareholders' Deficit\tNoncontrolling Interests\tTotal Shareholder's Deficit\n\tShares\tAmount\tShares\tCapital\t\t\nBalance at December 31 2018\t95000\t90123\t57521323\t58579\t(475526)\t4720\t(322104)\t64514\t(257590)\nNet income attributable to MDC Partners Inc.\t0\t0\t0\t0\t2425\t0\t2425\t0\t2425\nOther comprehensive loss\t0\t0\t0\t0\t0\t(7598)\t(7598)\t93\t(7505)\nIssuance of common and convertible preference shares\t50000\t62623\t14285714\t35997\t0\t0\t98620\t0\t98620\nVesting of restricted awards\t0\t0\t566932\t0\t0\t0\t0\t0\t0\nShares acquired and cancelled\t0\t0\t(227552)\t(577)\t0\t0\t(577)\t0\t(577)\nStock-based compensation\t0\t0\t0\t1918\t0\t0\t1918\t0\t1918\nChanges in redemption value of redeemable noncontrolling interests\t0\t0\t0\t3496\t0\t0\t3496\t0\t3496\nBusiness acquisitions and step-up transactions net of tax\t0\t0\t0\t(745)\t0\t0\t(745)\t0\t(745)\nChanges in ownership interest\t0\t0\t0\t(293)\t0\t0\t(293)\t(24642)\t(24935)\nOther\t0\t0\t0\t(11)\t(5)\t0\t(16)\t(9)\t(25)\nBalance at September 30 2019\t145000\t152746\t72146417\t98364\t(473106)\t(2878)\t(224874)\t39956\t(184918)\n", "q10k_tbl_10": "\t\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nIndustry\tReportable Segment\t2020\t2019\t2020\t2019\nFood & Beverage\tAll\t48153\t64774\t152586\t204743\nRetail\tAll\t39390\t39420\t108882\t111899\nConsumer Products\tAll\t37175\t38510\t111371\t119866\nCommunications\tAll\t20227\t48147\t58234\t136819\nAutomotive\tAll\t13399\t19125\t51610\t55857\nTechnology\tAll\t41220\t28148\t129569\t84294\nHealthcare\tAll\t25120\t25152\t71970\t74403\nFinancials\tAll\t22529\t28054\t66282\t81049\nTransportation and Travel/Lodging\tAll\t9674\t20541\t35226\t65111\nOther\tAll\t26536\t31036\t85113\t99787\n\t\t283423\t342907\t870843\t1033828\n", "q10k_tbl_11": "\t\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nGeographic Location\tReportable Segment\t2020\t2019\t2020\t2019\nUnited States\tAll\t228255\t271671\t703158\t819347\nCanada\tAll\t20299\t25895\t55164\t72837\nOther\tAll\t34869\t45341\t112521\t141644\n\t\t283423\t342907\t870843\t1033828\n", "q10k_tbl_12": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNumerator:\t\t\t\t\nNet income (loss) attributable to MDC Partners Inc.\t4076\t(1752)\t4486\t2425\nAccretion on convertible preference shares\t(3579)\t(3306)\t(10528)\t(8931)\nNet income allocated to convertible preference shares\t(137)\t0\t0\t0\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t360\t(5058)\t(6042)\t(6506)\nDenominator:\t\t\t\t\nBasic weighted average number of common shares outstanding\t73207619\t72044480\t72713257\t68154306\nDilutive effect of equity awards\t269160\t0\t0\t0\nDiluted weighted average number of common shares outstanding\t73476779\t72044480\t72713257\t68154306\nBasic\t0\t(0.07)\t(0.08)\t(0.10)\nDiluted\t0\t(0.07)\t(0.08)\t(0.10)\n", "q10k_tbl_13": "\tSeptember 30\tDecember 31\n\t2020\t2019\nBeginning Balance of contingent payments\t74671\t82598\nPayments\t(41326)\t(30719)\nRedemption value adjustments (1)\t2814\t15451\nAdditions - acquisitions and step-up transactions\t7703\t7145\nOther\t2020\t196\nEnding Balance of contingent payments\t45882\t74671\nFixed payments\t263\t549\n\t46145\t75220\n", "q10k_tbl_14": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nLoss (Income) attributable to fair value adjustments\t2803\t1943\t515\t(3627)\nStock-based compensation\t770\t1540\t2299\t1010\nRedemption value adjustments\t3573\t3483\t2814\t(2617)\n", "q10k_tbl_15": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nLease Cost:\t\t\t\t\nOperating lease cost\t18495\t16605\t53397\t50519\nVariable lease cost\t3580\t4960\t11808\t14285\nSublease rental income\t(2940)\t(2376)\t(8637)\t(6565)\nTotal lease cost\t19135\t19189\t56568\t58239\nAdditional information:\t\t\t\t\nCash paid for amounts included in the measurement of lease liabilities for operating leases\t\t\t\t\nOperating cash flows\t17703\t16988\t52930\t52163\nRight-of-use assets obtained in exchange for operating lease liabilities and other non-cash adjustments\t(814)\t8783\t37120\t267796\nWeighted average remaining lease term (in years) - Operating leases\t7.35\t7.0\t7.35\t7.0\nWeighted average discount rate - Operating leases\t10.6\t8.7\t10.6\t8.7\n", "q10k_tbl_16": "\tMaturity Analysis\nRemaining 2020\t17241\n2021\t67718\n2022\t61473\n2023\t57429\n2024\t50894\nThereafter\t190461\nTotal\t445216\nLess: Present value discount\t(148071)\nLease liability\t297145\n", "q10k_tbl_17": "\tSeptember 30 2020\tDecember 31 2019\nRevolving credit agreement\t0\t0\n6.50% Notes due 2024\t870256\t900000\nDebt issuance costs\t(9834)\t(12370)\n\t860422\t887630\n", "q10k_tbl_18": "\tNoncontrolling Interests\nBalance December 31 2018\t9278\nIncome attributable to noncontrolling interests\t16156\nDistributions made\t(11392)\nOther\t(14)\nBalance December 31 2019\t14028\nIncome attributable to noncontrolling interests\t14620\nDistributions made\t(14499)\nOther\t(218)\nBalance September 30 2020\t13931\n", "q10k_tbl_19": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income (loss) attributable to MDC Partners Inc.\t4076\t(1752)\t4486\t2425\nTransfers from the noncontrolling interest:\t\t\t\t\nIncrease (decrease) in MDC Partners Inc. paid-in capital for purchase of redeemable noncontrolling interests and noncontrolling interests\t2129\t(648)\t1626\t(745)\nNet transfers from noncontrolling interests\t2129\t(648)\t1626\t(745)\nChange from net income (loss) attributable to MDC Partners Inc. and transfers to noncontrolling interests\t6205\t(2400)\t6112\t1680\n", "q10k_tbl_20": "\tNine Months Ended September 30 2020\tYear Ended December 31 2019\nBeginning Balance\t36973\t51546\nRedemptions\t(12289)\t(14530)\nGranted\t0\t0\nChanges in redemption value\t1056\t(3163)\nCurrency translation adjustments\t(568)\t3\nOther\t0\t3117\nEnding Balance\t25172\t36973\n", "q10k_tbl_21": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tCarrying Amount\tFair Value\tCarrying Amount\tFair Value\nLiabilities:\t\t\t\t\n6.50% Senior Notes due 2024\t870256\t800000\t900000\t812250\n", "q10k_tbl_22": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenue:\t(Dollars in Thousands)\t\t\t\nIntegrated Networks - Group A\t87064\t99299\t260420\t276286\nIntegrated Networks - Group B\t112159\t129057\t323264\t395622\nMedia & Data Network\t33572\t36235\t103181\t118923\nAll Other\t50628\t78316\t183978\t242997\nTotal\t283423\t342907\t870843\t1033828\nAdjusted EBITDA:\t\t\t\t\nIntegrated Networks - Group A\t21009\t23974\t54516\t43128\nIntegrated Networks - Group B\t29598\t21989\t63121\t65117\nMedia & Data Network\t3031\t1354\t5710\t2388\nAll Other\t7146\t9221\t23936\t26962\nCorporate\t(6726)\t(7333)\t(17496)\t(20478)\nTotal Adjusted EBITDA\t54058\t49205\t129787\t117117\nDepreciation and amortization\t(9332)\t(9368)\t(27437)\t(28869)\nImpairment and other losses\t(159)\t(1944)\t(19159)\t(1944)\nStock-based compensation\t(6459)\t(6026)\t(10568)\t(12632)\nDeferred acquisition consideration adjustments\t(2803)\t(1943)\t(515)\t3627\nDistributions from non-consolidated affiliates\t(208)\t202\t(1273)\t171\nOther items net\t(6208)\t(705)\t(12519)\t(8926)\nTotal Operating Income\t28889\t29421\t58316\t68544\nOther Income (Expenses):\t\t\t\t\nInterest expense and finance charges net\t(15266)\t(16110)\t(46819)\t(49284)\nForeign exchange gain (loss)\t2159\t(3973)\t(7256)\t4401\nOther net\t505\t(431)\t22723\t(4559)\nIncome before income taxes and equity in earnings of non-consolidated affiliates\t16287\t8907\t26964\t19102\nIncome tax expense\t1452\t3457\t7029\t6292\nIncome before equity in earnings of non-consolidated affiliates\t14835\t5450\t19935\t12810\nEquity in earnings (losses) of non-consolidated affiliates\t(31)\t63\t(829)\t352\nNet income\t14804\t5513\t19106\t13162\nNet income attributable to the noncontrolling interest\t(10728)\t(7265)\t(14620)\t(10737)\nNet income (loss) attributable to MDC Partners Inc.\t4076\t(1752)\t4486\t2425\nAccretion on and net income allocated to convertible preference shares\t(3716)\t(3306)\t(10528)\t(8931)\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t360\t(5058)\t(6042)\t(6506)\n", "q10k_tbl_23": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nDepreciation and amortization:\t(Dollars in Thousands)\t\t\t\nIntegrated Networks - Group A\t1601\t2132\t4908\t6420\nIntegrated Networks - Group B\t4813\t3872\t13726\t11964\nMedia & Data Network\t786\t1004\t2401\t3332\nAll Other\t1933\t2168\t5735\t6523\nCorporate\t199\t192\t667\t630\nTotal\t9332\t9368\t27437\t28869\nStock-based compensation:\t\t\t\t\nIntegrated Networks - Group A\t4024\t4330\t5880\t8564\nIntegrated Networks - Group B\t742\t740\t2388\t3231\nMedia & Data Network\t131\t16\t122\t22\nAll Other\t141\t107\t339\t363\nCorporate\t1421\t833\t1839\t452\nTotal\t6459\t6026\t10568\t12632\nCapital expenditures:\t\t\t\t\nIntegrated Networks - Group A\t269\t1083\t835\t5120\nIntegrated Networks - Group B\t694\t4108\t899\t6287\nMedia & Data Network\t72\t116\t269\t460\nAll Other\t79\t545\t536\t1889\nCorporate\t23073\t11\t25338\t30\nTotal\t24187\t5863\t27877\t13786\n", "q10k_tbl_24": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenue:\t(Dollars in Thousands)\t\t\t\nIntegrated Networks - Group A\t87064\t99299\t260420\t276286\nIntegrated Networks - Group B\t112159\t129057\t323264\t395622\nMedia & Data Network\t33572\t36235\t103181\t118923\nAll Other\t50628\t78316\t183978\t242997\nTotal Revenue\t283423\t342907\t870843\t1033828\nOperating Income (Loss):\t\t\t\t\nIntegrated Networks - Group A\t12700\t17441\t39337\t28553\nIntegrated Networks - Group B\t23636\t15488\t33080\t52189\nMedia & Data Network\t2114\t331\t2777\t(1041)\nAll Other\t5201\t5272\t18045\t19408\nCorporate\t(14762)\t(9111)\t(34923)\t(30565)\nTotal Operating Income\t28889\t29421\t58316\t68544\nOther Income (Expenses):\t\t\t\t\nInterest expense and finance charges net\t(15266)\t(16110)\t(46819)\t(49284)\nForeign exchange gain (loss)\t2159\t(3973)\t(7256)\t4401\nOther net\t505\t(431)\t22723\t(4559)\nIncome before income taxes and equity in earnings of non-consolidated affiliates\t16287\t8907\t26964\t19102\nIncome tax expense\t1452\t3457\t7029\t6292\nIncome before equity in earnings of non-consolidated affiliates\t14835\t5450\t19935\t12810\nEquity in earnings (losses) of non-consolidated affiliates\t(31)\t63\t(829)\t352\nNet income\t14804\t5513\t19106\t13162\nNet income attributable to the noncontrolling interest\t(10728)\t(7265)\t(14620)\t(10737)\nNet income (loss) attributable to MDC Partners Inc.\t4076\t(1752)\t4486\t2425\nAccretion on and net income allocated to convertible preference shares\t(3716)\t(3306)\t(10528)\t(8931)\nNet income (loss) attributable to MDC Partners Inc. common shareholders\t360\t(5058)\t(6042)\t(6506)\nAdjusted EBITDA:\t\t\t\t\nIntegrated Networks - Group A\t21009\t23974\t54516\t43128\nIntegrated Networks - Group B\t29598\t21989\t63121\t65117\nMedia & Data Network\t3031\t1354\t5710\t2388\nAll Other\t7146\t9221\t23936\t26962\nCorporate\t(6726)\t(7333)\t(17496)\t(20478)\nTotal Adjusted EBITDA\t54058\t49205\t129787\t117117\n", "q10k_tbl_25": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCapital expenditures:\t(Dollars in Thousands)\t\t\t\nIntegrated Networks - Group A\t269\t1083\t835\t5120\nIntegrated Networks - Group B\t694\t4108\t899\t6287\nMedia & Data Network\t72\t116\t269\t460\nAll Other\t79\t545\t536\t1889\nCorporate\t23073\t11\t25338\t30\nTotal\t24187\t5863\t27877\t13786\n", "q10k_tbl_26": "\tThree Months Ended September 30 2020\t\t\t\t\t\n\tIntegrated Networks - Group A\tIntegrated Networks - Group B\tMedia & Data Network\tAll Other\tCorporate\tTotal\n\t(Dollars in Thousands)\t\t\t\t\t\nNet income attributable to MDC Partners Inc. common shareholders\t\t\t\t\t\t360\nAdjustments\t\t\t\t\t\t28529\nOperating income (loss)\t12700\t23636\t2114\t5201\t(14762)\t28889\nAdjustments:\t\t\t\t\t\t\nDepreciation and amortization\t1601\t4813\t786\t1933\t199\t9332\nImpairment and other losses\t0\t157\t0\t2\t0\t159\nStock-based compensation\t4024\t742\t131\t141\t1421\t6459\nDeferred acquisition consideration adjustments\t2684\t250\t0\t(131)\t0\t2803\nDistributions from non-consolidated affiliates\t0\t0\t0\t0\t208\t208\nOther items net\t0\t0\t0\t0\t6208\t6208\nAdjusted EBITDA\t21009\t29598\t3031\t7146\t(6726)\t54058\n", "q10k_tbl_27": "\tThree Months Ended September 30 2019\t\t\t\t\t\n\tIntegrated Networks - Group A\tIntegrated Networks - Group B\tMedia & Data Network\tAll Other\tCorporate\tTotal\n\t(Dollars in Thousands)\t\t\t\t\t\nNet loss attributable to MDC Partners Inc. common shareholders\t\t\t\t\t\t(5058)\nAdjustments\t\t\t\t\t\t34479\nOperating income (loss)\t17441\t15488\t331\t5272\t(9111)\t29421\nAdjustments:\t\t\t\t\t\t\nDepreciation and amortization\t2132\t3872\t1004\t2168\t192\t9368\nImpairment and other losses\t0\t1933\t0\t11\t0\t1944\nStock-based compensation\t4330\t740\t16\t107\t833\t6026\nDeferred acquisition consideration adjustments\t71\t206\t3\t1663\t0\t1943\nDistributions from non-consolidated affiliates\t0\t(250)\t0\t0\t48\t(202)\nOther items net\t0\t0\t0\t0\t705\t705\nAdjusted EBITDA\t23974\t21989\t1354\t9221\t(7333)\t49205\n", "q10k_tbl_28": "\tNine Months Ended September 30 2020\t\t\t\t\t\n\tIntegrated Networks - Group A\tIntegrated Networks - Group B\tMedia & Data Network\tAll Other\tCorporate\tTotal\n\t(Dollars in Thousands)\t\t\t\t\t\nNet loss attributable to MDC Partners Inc. common shareholders\t\t\t\t\t\t(6042)\nAdjustments\t\t\t\t\t\t64358\nOperating income (loss)\t39337\t33080\t2777\t18045\t(34923)\t58316\nAdjustments:\t\t\t\t\t\t\nDepreciation and amortization\t4908\t13726\t2401\t5735\t667\t27437\nImpairment and other losses\t0\t17786\t35\t209\t1129\t19159\nStock-based compensation\t5880\t2388\t122\t339\t1839\t10568\nDeferred acquisition consideration adjustments\t4391\t(3859)\t375\t(392)\t0\t515\nDistributions from non-consolidated affiliates\t0\t0\t0\t0\t1273\t1273\nOther items net\t0\t0\t0\t0\t12519\t12519\nAdjusted EBITDA\t54516\t63121\t5710\t23936\t(17496)\t129787\n", "q10k_tbl_29": "\tNine Months Ended September 30 2019\t\t\t\t\t\n\tIntegrated Networks - Group A\tIntegrated Networks - Group B\tMedia & Data Network\tAll Other\tCorporate\tTotal\n\t(Dollars in Thousands)\t\t\t\t\t\nNet loss attributable to MDC Partners Inc. common shareholders\t\t\t\t\t\t(6506)\nAdjustments\t\t\t\t\t\t75050\nOperating income (loss)\t28553\t52189\t(1041)\t19408\t(30565)\t68544\nAdjustments:\t\t\t\t\t\t\nDepreciation and amortization\t6420\t11964\t3332\t6523\t630\t28869\nImpairment and other losses\t0\t1933\t0\t11\t0\t1944\nStock-based compensation\t8564\t3231\t22\t363\t452\t12632\nDeferred acquisition consideration adjustments\t(409)\t(3950)\t75\t657\t0\t(3627)\nDistributions from non- consolidated affiliates\t0\t(250)\t0\t0\t79\t(171)\nOther items net\t0\t0\t0\t0\t8926\t8926\nAdjusted EBITDA\t43128\t65117\t2388\t26962\t(20478)\t117117\n", "q10k_tbl_30": "\tTotal\t\tUnited States\t\tCanada\t\tOther\t\n\t$\t%\t$\t%\t$\t%\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\t\t\nSeptember 30 2019\t342907\t\t271671\t\t25895\t\t45341\t\nComponents of revenue change:\t\t\t\t\t\t\t\t\nForeign exchange impact\t873\t0.3%\t0\t-%\t(179)\t(0.7)%\t1052\t2.3%\nNon-GAAP acquisitions (dispositions) net\t(4076)\t(1.2)%\t(4076)\t(1.5)%\t0\t-%\t0\t-%\nOrganic revenue\t(56281)\t(16.4)%\t(39339)\t(14.5)%\t(5417)\t(20.9)%\t(11525)\t(25.4)%\nTotal Change\t(59484)\t(17.3)%\t(43415)\t(16.0)%\t(5596)\t(21.6)%\t(10473)\t(23.1)%\nSeptember 30 2020\t283423\t\t228256\t\t20299\t\t34868\t\n", "q10k_tbl_31": "\tAll Other\tTotal\n\t(Dollars in Thousands)\t\nGAAP revenue from 2019 and 2020 acquisitions\t0\t0\nForeign exchange impact\t0\t0\nContribution to non-GAAP organic revenue growth (decline)\t0\t0\nPrior year revenue from dispositions\t(4076)\t(4076)\nNon-GAAP acquisitions (dispositions) net\t(4076)\t(4076)\n", "q10k_tbl_32": "\t2020\t2019\nUnited States\t80.5%\t79.2%\nCanada\t7.2%\t7.6%\nOther\t12.3%\t13.2%\n", "q10k_tbl_33": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group A\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue:\t87064\t\t99299\t\t(12235)\t(12.3)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t54784\t62.9%\t65431\t65.9%\t(10647)\t(16.3)%\nOffice and general expenses\t17979\t20.7%\t14295\t14.4%\t3684\t25.8%\nDepreciation and amortization\t1601\t1.8%\t2132\t2.1%\t(531)\t(24.9)%\n\t74364\t85.4%\t81858\t82.4%\t(7494)\t(9.2)%\nOperating income\t12700\t14.6%\t17441\t17.6%\t(4741)\t(27.2)%\nAdjusted EBITDA\t21009\t24.1%\t23974\t24.1%\t(2965)\t(12.4)%\n", "q10k_tbl_34": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group A\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t12075\t13.9%\t10849\t10.9%\t1226\t11.3%\nStaff costs\t44667\t51.3%\t53707\t54.1%\t(9040)\t(16.8)%\nAdministrative\t9313\t10.7%\t10769\t10.8%\t(1456)\t(13.5)%\nDeferred acquisition consideration\t2684\t3.1%\t71\t0.1%\t2613\tNM\nStock-based compensation\t4024\t4.6%\t4330\t4.4%\t(306)\t(7.1)%\nDepreciation and amortization\t1601\t1.8%\t2132\t2.1%\t(531)\t(24.9)%\nTotal operating expenses\t74364\t85.4%\t81858\t82.4%\t(7494)\t(9.2)%\n", "q10k_tbl_35": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group B\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue:\t112159\t\t129057\t\t(16898)\t(13.1)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t61398\t54.7%\t77132\t59.8%\t(15734)\t(20.4)%\nOffice and general expenses\t22155\t19.8%\t30632\t23.7%\t(8477)\t(27.7)%\nDepreciation and amortization\t4813\t4.3%\t3872\t3.0%\t941\t24.3%\nImpairment and other losses\t157\t0.1%\t1933\t1.5%\t(1776)\t(91.9)%\n\t88523\t78.9%\t113569\t88.0%\t(25046)\t(22.1)%\nOperating income\t23636\t21.1%\t15488\t12.0%\t8148\t52.6%\nAdjusted EBITDA\t29598\t26.4%\t21989\t17.0%\t7609\t34.6%\n", "q10k_tbl_36": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group B\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t13575\t12.1%\t16730\t13.0%\t(3155)\t(18.9)%\nStaff costs\t56287\t50.2%\t73081\t56.6%\t(16794)\t(23.0)%\nAdministrative\t12699\t11.3%\t17007\t13.2%\t(4308)\t(25.3)%\nDeferred acquisition consideration\t250\t0.2%\t206\t0.2%\t44\t21.4%\nStock-based compensation\t742\t0.7%\t740\t0.6%\t2\t0.3%\nDepreciation and amortization\t4813\t4.3%\t3872\t3.0%\t941\t24.3%\nImpairment and other losses\t157\t0.1%\t1933\t1.5%\t(1776)\t(91.9)%\nTotal operating expenses\t88523\t78.9%\t113569\t88.0%\t(25046)\t(22.1)%\n", "q10k_tbl_37": "\t2020\t\t2019\t\tChange\t\nMedia & Data Network\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t33572\t\t36235\t\t(2663)\t(7.3)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t23608\t70.3%\t26219\t72.4%\t(2611)\t(10.0)%\nOffice and general expenses\t7064\t21.0%\t8681\t24.0%\t(1617)\t(18.6)%\nDepreciation and amortization\t786\t2.3%\t1004\t2.8%\t(218)\t(21.7)%\nImpairment and other losses\t0\t-%\t0\t-%\t0\t-%\n\t31458\t93.7%\t35904\t99.1%\t(4446)\t(12.4)%\nOperating income\t2114\t6.3%\t331\t0.9%\t1783\tNM\nAdjusted EBITDA\t3031\t9.0%\t1354\t3.7%\t1677\tNM\n", "q10k_tbl_38": "\t2020\t\t2019\t\tChange\t\nMedia & Data Network\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t9159\t27.3%\t8009\t22.1%\t1150\t14.4%\nStaff costs\t16105\t48.0%\t20940\t57.8%\t(4835)\t(23.1)%\nAdministrative\t5277\t15.7%\t5932\t16.4%\t(655)\t(11.0)%\nDeferred acquisition consideration\t0\t-%\t3\t-%\t(3)\t(100.0)%\nStock-based compensation\t131\t0.4%\t16\t-%\t115\tNM\nDepreciation and amortization\t786\t2.3%\t1004\t2.8%\t(218)\t(21.7)%\nImpairment and other losses\t0\t-%\t0\t-%\t0\t-%\nTotal operating expenses\t31458\t93.7%\t35904\t99.1%\t(4446)\t(12.4)%\n", "q10k_tbl_39": "\t2020\t\t2019\t\tChange\t\nAll Other\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t50628\t\t78316\t\t(27688)\t(35.4)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t32741\t64.7%\t53666\t68.5%\t(20925)\t(39.0)%\nOffice and general expenses\t10751\t21.2%\t17199\t22.0%\t(6448)\t(37.5)%\nDepreciation and amortization\t1933\t3.8%\t2168\t2.8%\t(235)\t(10.8)%\nImpairment and other losses\t2\t-%\t11\t-%\t(9)\t(81.8)%\n\t45427\t89.7%\t73044\t93.3%\t(27617)\t(37.8)%\nOperating income\t5201\t10.3%\t5272\t6.7%\t(71)\t(1.3)%\nAdjusted EBITDA\t7146\t14.1%\t9221\t11.8%\t(2075)\t(22.5)%\n", "q10k_tbl_40": "\t2020\t\t2019\t\tChange\t\nAll Other\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t6912\t13.7%\t15565\t19.9%\t(8653)\t(55.6)%\nStaff costs\t29984\t59.2%\t43081\t55.0%\t(13097)\t(30.4)%\nAdministrative\t6586\t13.0%\t10449\t13.3%\t(3863)\t(37.0)%\nDeferred acquisition consideration\t(131)\t(0.3)%\t1663\t2.1%\t(1794)\tNM\nStock-based compensation\t141\t0.3%\t107\t0.1%\t34\t31.8%\nDepreciation and amortization\t1933\t3.8%\t2168\t2.8%\t(235)\t(10.8)%\nImpairment and other losses\t2\t-%\t11\t-%\t(9)\t(81.8)%\nTotal operating expenses\t45427\t89.7%\t73044\t93.3%\t(27617)\t(37.8)%\n", "q10k_tbl_41": "\t2020\t2019\tChange\t\nCorporate\t$\t$\t$\t%\n\t(Dollars in Thousands)\t\t\t\nStaff costs\t6013\t5772\t241\t4.2%\nAdministrative\t7129\t2314\t4815\tNM\nStock-based compensation\t1421\t833\t588\t70.6%\nDepreciation and amortization\t199\t192\t7\t3.6%\nTotal operating expenses\t14762\t9111\t5651\t62.0%\nAdjusted EBITDA\t(6726)\t(7333)\t607\t(8.3)%\n", "q10k_tbl_42": "\tTotal\t\tUnited States\t\tCanada\t\tOther\t\n\t$\t%\t$\t%\t$\t%\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\t\t\nSeptember 30 2019\t1033828\t\t819347\t\t72837\t\t141644\t\nComponents of revenue change:\t\t\t\t\t\t\t\t\nForeign exchange impact\t(3835)\t(0.4)%\t0\t-%\t(1054)\t(1.4)%\t(2781)\t(2.0)%\nNon-GAAP acquisitions (dispositions) net\t(13865)\t(1.3)%\t(10160)\t(1.2)%\t(3705)\t(5.1)%\t0\t-%\nOrganic revenue\t(145285)\t(14.1)%\t(106029)\t(12.9)%\t(12914)\t(17.7)%\t(26342)\t(18.6)%\nTotal Change\t(162985)\t(15.8)%\t(116189)\t(14.2)%\t(17673)\t(24.3)%\t(29123)\t(20.6)%\nSeptember 30 2020\t870843\t\t703158\t\t55164\t\t112521\t\n", "q10k_tbl_43": "\tAll Other\tTotal\n\t(Dollars in Thousands)\t\nGAAP revenue from 2019 and 2020 acquisitions\t0\t0\nForeign exchange impact\t(248)\t(248)\nContribution to non-GAAP organic revenue growth\t(411)\t(411)\nPrior year revenue from dispositions\t(13206)\t(13206)\nNon-GAAP acquisitions (dispositions) net\t(13865)\t(13865)\n", "q10k_tbl_44": "\t2020\t2019\nUnited States\t80.8%\t79.3%\nCanada\t6.3%\t7.0%\nOther\t12.9%\t13.7%\n", "q10k_tbl_45": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group A\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t260420\t\t276286\t\t(15866)\t(5.7)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t170501\t65.5%\t198518\t71.9%\t(28017)\t(14.1)%\nOffice and general expenses\t45674\t17.5%\t42795\t15.5%\t2879\t6.7%\nDepreciation and amortization\t4908\t1.9%\t6420\t2.3%\t(1512)\t(23.6)%\n\t221083\t84.9%\t247733\t89.7%\t(26650)\t(10.8)%\nOperating income\t39337\t15.1%\t28553\t10.3%\t10784\t37.8%\nAdjusted EBITDA\t54516\t20.9%\t43128\t15.6%\t11388\t26.4%\n", "q10k_tbl_46": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group A\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t30478\t11.7%\t34660\t12.5%\t(4182)\t(12.1)%\nStaff costs\t147222\t56.5%\t166179\t60.1%\t(18957)\t(11.4)%\nAdministrative\t28204\t10.8%\t32319\t11.7%\t(4115)\t(12.7)%\nDeferred acquisition consideration\t4391\t1.7%\t(409)\t(0.1)%\t4800\tNM\nStock-based compensation\t5880\t2.3%\t8564\t3.1%\t(2684)\t(31.3)%\nDepreciation and amortization\t4908\t1.9%\t6420\t2.3%\t(1512)\t(23.6)%\nTotal operating expenses\t221083\t84.9%\t247733\t89.7%\t(26650)\t(10.8)%\n", "q10k_tbl_47": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group B\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t323264\t\t395622\t\t(72358)\t(18.3)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t190701\t59.0%\t242267\t61.2%\t(51566)\t(21.3)%\nOffice and general expenses\t67971\t21.0%\t87269\t22.1%\t(19298)\t(22.1)%\nDepreciation and amortization\t13726\t4.2%\t11964\t3.0%\t1762\t14.7%\nImpairment and other losses\t17786\t5.5%\t1933\t0.5%\t15853\tNM\n\t290184\t89.8%\t343433\t86.8%\t(53249)\t(15.5)%\nOperating income\t33080\t10.2%\t52189\t13.2%\t(19109)\t(36.6)%\nAdjusted EBITDA\t63121\t19.5%\t65117\t16.5%\t(1996)\t(3.1)%\n", "q10k_tbl_48": "\t2020\t\t2019\t\tChange\t\nIntegrated Networks - Group B\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t35675\t11.0%\t51456\t13.0%\t(15781)\t(30.7)%\nStaff costs\t185477\t57.4%\t227832\t57.6%\t(42355)\t(18.6)%\nAdministrative\t38991\t12.1%\t50967\t12.9%\t(11976)\t(23.5)%\nDeferred acquisition consideration\t(3859)\t(1.2)%\t(3950)\t(1.0)%\t91\t(2.3)%\nStock-based compensation\t2388\t0.7%\t3231\t0.8%\t(843)\t(26.1)%\nDepreciation and amortization\t13726\t4.2%\t11964\t3.0%\t1762\t14.7%\nImpairment and other losses\t17786\t5.5%\t1933\t0.5%\t15853\tNM\nTotal operating expenses\t290184\t89.8%\t343433\t86.8%\t(53249)\t(15.5)%\n", "q10k_tbl_49": "\t2020\t\t2019\t\tChange\t\nMedia & Data Network\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t103181\t\t118923\t\t(15742)\t(13.2)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t74396\t72.1%\t89806\t75.5%\t(15410)\t(17.2)%\nOffice and general expenses\t23572\t22.8%\t26826\t22.6%\t(3254)\t(12.1)%\nDepreciation and amortization\t2401\t2.3%\t3332\t2.8%\t(931)\t(27.9)%\nImpairment and other losses\t35\t-%\t0\t-%\t35\t-%\n\t100404\t97.3%\t119964\t100.9%\t(19560)\t(16.3)%\nOperating income (loss)\t2777\t2.7%\t(1041)\t(0.9)%\t3818\tNM\nAdjusted EBITDA\t5710\t5.5%\t2388\t2.0%\t3322\tNM\n", "q10k_tbl_50": "\t2020\t\t2019\t\tChange\t\nMedia & Data Network\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t27843\t27.0%\t32852\t27.6%\t(5009)\t(15.2)%\nStaff costs\t53418\t51.8%\t64727\t54.4%\t(11309)\t(17.5)%\nAdministrative\t16210\t15.7%\t18956\t15.9%\t(2746)\t(14.5)%\nDeferred acquisition consideration\t375\t0.4%\t75\t0.1%\t300\tNM\nStock-based compensation\t122\t0.1%\t22\t-%\t100\tNM\nDepreciation and amortization\t2401\t2.3%\t3332\t2.8%\t(931)\t(27.9)%\nImpairment and other losses\t35\t-%\t0\t-%\t35\t-%\nTotal operating expenses\t100404\t97.3%\t119964\t100.9%\t(19560)\t(16.3)%\n", "q10k_tbl_51": "\t2020\t\t2019\t\tChange\t\nAll Other\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nRevenue\t183978\t\t242997\t\t(59019)\t(24.3)%\nOperating expenses\t\t\t\t\t\t\nCost of services sold\t125258\t68.1%\t169760\t69.9%\t(44502)\t(26.2)%\nOffice and general expenses\t34731\t18.9%\t47295\t19.5%\t(12564)\t(26.6)%\nDepreciation and amortization\t5735\t3.1%\t6523\t2.7%\t(788)\t(12.1)%\nImpairment and other losses\t209\t0.1%\t11\t-%\t198\tNM\n\t165933\t90.2%\t223589\t92.0%\t(57656)\t(25.8)%\nOperating income\t18045\t9.8%\t19408\t8.0%\t(1363)\t(7.0)%\nAdjusted EBITDA\t23936\t13.0%\t26962\t11.1%\t(3026)\t(11.2)%\n", "q10k_tbl_52": "\t2020\t\t2019\t\tChange\t\nAll Other\t$\t% of Revenue\t$\t% of Revenue\t$\t%\n\t(Dollars in Thousands)\t\t\t\t\t\nDirect costs\t33831\t18.4%\t48680\t20.0%\t(14849)\t(30.5)%\nStaff costs\t106399\t57.8%\t138070\t56.8%\t(31671)\t(22.9)%\nAdministrative\t19812\t10.8%\t29285\t12.1%\t(9473)\t(32.3)%\nDeferred acquisition consideration\t(392)\t(0.2)%\t657\t0.3%\t(1049)\tNM\nStock-based compensation\t339\t0.2%\t363\t0.1%\t(24)\t(6.6)%\nDepreciation and amortization\t5735\t3.1%\t6523\t2.7%\t(788)\t(12.1)%\nImpairment and other losses\t209\t0.1%\t11\t-%\t198\tNM\nTotal operating expenses\t165933\t90.2%\t223589\t92.0%\t(57656)\t(25.8)%\n", "q10k_tbl_53": "\t2020\t2019\tChange\t\nCorporate\t$\t$\t$\t%\n\t(Dollars in Thousands)\t\t\t\nStaff costs\t14703\t19623\t(4920)\t(25.1)%\nAdministrative\t16585\t9860\t6725\t68.2%\nStock-based compensation\t1839\t452\t1387\tNM\nDepreciation and amortization\t667\t630\t37\t5.9%\nImpairment and other losses\t1129\t0\t1129\t-%\nTotal operating expenses\t34923\t30565\t4358\t14.3%\nAdjusted EBITDA\t(17496)\t(20478)\t2982\t(14.6)%\n", "q10k_tbl_54": "\tSeptember 30 2020\tSeptember 30 2019\n\t(Dollars in Thousands)\t\nNet cash used in operating activities\t(2491)\t(5840)\nNet cash provided by investing activities\t4549\t3307\nNet cash used in financing activities\t(71969)\t(2202)\n", "q10k_tbl_55": "\tSeptember 30 2020\nTotal Senior Leverage Ratio\t0.02\nMaximum per covenant\t2.00\nTotal Leverage Ratio\t4.38\nMaximum per covenant\t6.25\nFixed Charges Ratio\t3.03\nMinimum per covenant\t1.00\nEarnings before interest taxes depreciation and amortization (in millions)\t199.3\nMinimum per covenant (in millions)\t120.0\n", "q10k_tbl_56": "\tSeptember 30 2020\t\t\t\t\n\tIntegrated Networks - Group A\tIntegrated Networks - Group B\tMedia & Data Network\tAll Other\tTotal\n\t(Dollars in Thousands)\t\t\t\t\nBeginning Balance of contingent payments\t36124\t27060\t0\t11487\t74671\nPayments\t(23131)\t(15242)\t(375)\t(2578)\t(41326)\nAdditions - acquisitions and step-up transactions\t5227\t2476\t0\t0\t7703\nRedemption value adjustments (1)\t4391\t(3859)\t375\t(392)\t515\nStock-based compensation\t1195\t1104\t0\t0\t2299\nOther\t2179\t\t0\t(159)\t2020\nEnding Balance of contingent payments\t25985\t11539\t0\t8358\t45882\nFixed payments\t0\t263\t0\t0\t263\n\t25985\t11802\t0\t8358\t46145\n", "q10k_tbl_57": "Period\tTotal Number of Shares Purchased\tAverage Price Paid Per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Program\tMaximum Number of Shares That May Yet Be Purchased Under the Program\n7/1/2020 - 7/31/2020\t0\t0\t0\t0\n8/1/2020 - 8/31/2020\t0\t0\t0\t0\n9/1/2020 - 9/30/2020\t80120\t1.61\t0\t0\nTotal\t80120\t1.61\t0\t0\n", "q10k_tbl_58": "Exhibit No.\tDescription\n3.1\tArticles of Amalgamation dated January 1 2004 (incorporated by reference to Exhibit 3.1 to the Company's Form 10-Q filed on May 10 2004).\n3.1.1\tArticles of Continuance dated June 28 2004 (incorporated by reference to Exhibit 3.3 to the Company's Form 10-Q filed on August 4 2004).\n3.1.2\tArticles of Amalgamation dated July 1 2010 (incorporated by reference to Exhibit 3.1 to the Company's Form 10-Q filed on July 30 2010).\n3.1.3\tArticles of Amalgamation dated May 1 2011 (incorporated by reference to Exhibit 3.1 to the Company's Form 10-Q filed on May 2 2011).\n3.1.4\tArticles of Amalgamation dated January 1 2013 (incorporated by reference to Exhibit 3.1.4 to the Company's Form 10-K filed on March 10 2014).\n3.1.5\tArticles of Amalgamation dated April 1 2013 (incorporated by reference to Exhibit 3.1.5 to the Company's Form 10-K filed on March 10 2014).\n3.1.6\tArticles of Amalgamation dated July 1 2013 (incorporated by reference to Exhibit 3.1.6 to the Company's Form 10-K filed on March 10 2014).\n3.1.7\tArticles of Amendment dated March 7 2017 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on March 7 2017).\n3.1.8\tArticles of Amendment dated March 14 2019 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on March 15 2019).\n3.2\tGeneral By-law No. 1 as amended on April 29 2005 (incorporated by reference to Exhibit 3.2 to the Company's Form 10-K filed on March 16 2007).\n4.1\tFirst Supplemental Indenture dated as of September 16 2020 among the Additional Note Guarantors and The Bank of New York Mellon as trustee to Indenture dated as of March 23 2016 among the Company the Guarantors and The Bank of New York Mellon as trustee.*\n10.1\tSeparation Agreement and General Release between MDC Partners Inc and Jonathan Mirsky dated as of September 22 2020 (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed on September 23 2020).†\n31.1\tCertification by Chief Executive Officer pursuant to Rules 13a - 14(a) and 15d - 14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.*\n31.2\tCertification by Chief Financial Officer pursuant to Rules 13a - 14(a) and 15d - 14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.*\n32.1\tCertification by Chief Executive Officer pursuant to 18 USC. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*\n32.2\tCertification by Chief Financial Officer pursuant to 18 USC. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*\n99.1\tSchedule of Advertising and Communications Companies.*\n101\tInteractive data file.*\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_2", "cf": "q10k_tbl_5"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File Number: 001-13718
MDC Partners Inc.
(Exact name of registrant as specified in its charter)
Canada
98-0364441
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
One World Trade Center, Floor 65
New York,
New York
10007
(Address of principal executive offices)
(Zip Code)
(646) 429-1800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Subordinate Voting Shares, no par value
MDCA
NASDAQ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated Filer
☐
Accelerated Filer
☒
Non-accelerated Filer
☐
Smaller reporting company
☒
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of common shares outstanding as of October 23, 2020 was 73,528,105 Class A subordinate voting shares and 3,743 Class B multiple voting shares.
References in this Quarterly Report on Form 10-Q to “MDC Partners,” “MDC,” the “Company,” “we,” “us” and “our” refer to MDC Partners Inc. and, unless the context otherwise requires or otherwise is expressly stated, its subsidiaries. References in this Quarterly Report on Form 10-Q to “Partner Firms” generally refer to the Company’s subsidiary agencies.
All dollar amounts are stated in U.S. dollars unless otherwise stated.
Note About Forward-Looking Statements
This document contains forward-looking statements. The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, 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. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. 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 international, national and regional unfavorable economic conditions that could affect the Company or its clients, including as a result of the novel coronavirus pandemic (“COVID-19”);
•the effects of the outbreak of COVID-19, including the measures to reduce its spread, and the impact on the economy and demand for our services, which may precipitate or exacerbate other risks and uncertainties;
•developments involving the proposal by Stagwell Media LP to enter into a business combination with the Company (the “Potential Transaction”), including the impact of the announcement of the formation of the special committee, the reaching of an agreement in principle on certain aspects of a Potential Transaction, and the continuing discussion and review of a Potential Transaction on the Company’s business, whether any Potential Transaction will occur, and/or the ability to implement any Potential Transaction or other transaction;
•the Company’s ability to attract new clients and retain existing clients;
•reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
•financial failure of the Company’s clients;
•the Company’s ability to retain and attract key employees;
•the Company’s ability to achieve the full amount of its stated cost saving initiatives;
•the Company’s implementation of strategic initiatives;
•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.
Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in the Company’s 2019 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2020 and accessible on the SEC’s website at www.sec.gov., under the caption “Risk Factors,” and in the Company’s other SEC filings.