Company Quick10K Filing
MDC Partners
Price2.96 EPS-1
Shares72 P/E-3
MCap213 P/FCF-37
Net Debt868 EBIT-29
TEV1,081 TEV/EBIT-38
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-05
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-18
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-01
10-Q 2017-06-30 Filed 2017-08-14
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-11-03
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-04-30
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-11
10-Q 2014-03-31 Filed 2014-04-29
10-K 2013-12-31 Filed 2014-03-10
10-Q 2013-09-30 Filed 2013-11-05
10-Q 2013-06-30 Filed 2013-08-02
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-07
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-02
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-03
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-02
10-K 2010-12-31 Filed 2011-03-14
10-Q 2010-09-30 Filed 2010-10-29
10-Q 2010-06-30 Filed 2010-07-30
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-10
8-K 2020-08-31 Other Events, Exhibits
8-K 2020-08-31 Other Events, Exhibits
8-K 2020-08-06 Earnings, Exhibits
8-K 2020-07-15 Other Events, Exhibits
8-K 2020-06-26 Other Events, Exhibits
8-K 2020-06-25 Officers, Shareholder Vote, Exhibits
8-K 2020-05-29
8-K 2020-05-11
8-K 2020-04-29
8-K 2020-02-27
8-K 2020-01-20
8-K 2019-11-05
8-K 2019-09-25
8-K 2019-09-19
8-K 2019-09-09
8-K 2019-08-07
8-K 2019-06-03
8-K 2019-05-22
8-K 2019-05-07
8-K 2019-05-06
8-K 2019-04-30
8-K 2019-04-18
8-K 2019-04-08
8-K 2019-03-14
8-K 2019-01-18
8-K 2018-12-21
8-K 2018-12-11
8-K 2018-11-28
8-K 2018-11-12
8-K 2018-10-29
8-K 2018-09-20
8-K 2018-09-09
8-K 2018-08-02
8-K 2018-07-24
8-K 2018-06-18
8-K 2018-06-06
8-K 2018-05-09
8-K 2018-04-26
8-K 2018-04-02
8-K 2018-02-22

MDCA 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 mdca-20200630xexhibit311.htm
EX-31.2 mdca-20200630xexhibit312.htm
EX-32.1 mdca-20200630xexhibit321.htm
EX-32.2 mdca-20200630xexhibit3.htm
EX-99.1 mdca-20200630xexhibit9.htm

MDC Partners Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.91.40.90.4-0.1-0.62012201420172020
Assets, Equity
0.50.40.30.10.0-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

Document
false--12-31Q220200000876883P5YP2Y1295790001321740003304000211100010560007147000780000111500035870002940001988000217000950000001450000009500000014500000095000000145000000 0000876883 2020-01-01 2020-06-30 0000876883 mdca:ByLocationMember 2020-01-01 2020-06-30 0000876883 mdca:IndustryVerticalMember 2020-01-01 2020-06-30 0000876883 us-gaap:CommonClassBMember 2020-08-06 0000876883 us-gaap:CommonClassAMember 2020-08-06 0000876883 2020-04-01 2020-06-30 0000876883 2019-04-01 2019-06-30 0000876883 2019-01-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockDomain us-gaap:PreferredStockMember 2019-04-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockDomain us-gaap:PreferredStockMember 2019-01-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2020-01-01 2020-06-30 0000876883 mdca:Series4ConvertiblePreferredStockDomain us-gaap:PreferredStockMember 2020-04-01 2020-06-30 0000876883 2020-06-30 0000876883 2019-12-31 0000876883 mdca:Series4ConvertiblePreferredStockMember 2020-01-01 2020-06-30 0000876883 2018-12-31 0000876883 mdca:Series4ConvertiblePreferredStockMember 2019-01-01 2019-06-30 0000876883 us-gaap:RevolvingCreditFacilityMember mdca:WellsFargoCapitalFinanceLlcMember 2020-01-01 2020-06-30 0000876883 us-gaap:RevolvingCreditFacilityMember mdca:WellsFargoCapitalFinanceLlcMember 2019-01-01 2019-06-30 0000876883 2019-06-30 0000876883 us-gaap:ParentMember 2019-04-01 2019-06-30 0000876883 us-gaap:PreferredStockMember 2019-03-31 0000876883 2019-03-31 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-06-30 0000876883 us-gaap:RetainedEarningsMember 2019-03-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000876883 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000876883 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000876883 us-gaap:NoncontrollingInterestMember 2019-03-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000876883 us-gaap:PreferredStockMember 2019-06-30 0000876883 us-gaap:PreferredStockMember 2019-04-01 2019-06-30 0000876883 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000876883 us-gaap:CommonStockMember 2019-06-30 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-03-31 0000876883 us-gaap:ParentMember 2019-03-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000876883 us-gaap:CommonStockMember 2019-03-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000876883 us-gaap:NoncontrollingInterestMember 2019-06-30 0000876883 us-gaap:ParentMember 2019-06-30 0000876883 us-gaap:RetainedEarningsMember 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2020-06-30 0000876883 us-gaap:NoncontrollingInterestMember 2020-06-30 0000876883 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0000876883 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0000876883 us-gaap:ParentMember 2020-01-01 2020-06-30 0000876883 us-gaap:PreferredStockMember 2019-12-31 0000876883 us-gaap:PreferredStockMember 2020-06-30 0000876883 us-gaap:ParentMember 2019-12-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0000876883 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-06-30 0000876883 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000876883 us-gaap:NoncontrollingInterestMember 2019-12-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000876883 us-gaap:RetainedEarningsMember 2019-12-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000876883 us-gaap:RetainedEarningsMember 2020-06-30 0000876883 us-gaap:ParentMember 2020-06-30 0000876883 us-gaap:CommonStockMember 2020-06-30 0000876883 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0000876883 us-gaap:CommonStockMember 2019-12-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000876883 us-gaap:ParentMember 2020-04-01 2020-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2020-03-31 0000876883 us-gaap:NoncontrollingInterestMember 2020-03-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000876883 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000876883 us-gaap:PreferredStockMember 2020-03-31 0000876883 us-gaap:ParentMember 2020-03-31 0000876883 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000876883 us-gaap:RetainedEarningsMember 2020-03-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000876883 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000876883 2020-03-31 0000876883 us-gaap:CommonStockMember 2020-03-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000876883 us-gaap:ParentMember 2019-01-01 2019-06-30 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000876883 us-gaap:NoncontrollingInterestMember 2018-12-31 0000876883 us-gaap:PreferredStockMember 2019-01-01 2019-06-30 0000876883 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000876883 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000876883 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0000876883 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000876883 us-gaap:CommonStockMember 2018-12-31 0000876883 us-gaap:PreferredStockMember 2018-12-31 0000876883 us-gaap:RetainedEarningsMember 2018-12-31 0000876883 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000876883 us-gaap:ParentMember 2018-12-31 0000876883 mdca:KingsdalePartnersLpMember 2019-03-08 2019-03-08 0000876883 mdca:KWTGlobalMember 2020-03-19 2020-03-19 0000876883 mdca:LairdPartnersMember 2019-11-15 2019-11-15 0000876883 mdca:LairdPartnersMember 2019-11-15 0000876883 mdca:KWTGlobalMember 2020-01-01 2020-06-30 0000876883 mdca:HunterPRLLCMember 2019-04-01 0000876883 mdca:KWTGlobalMember 2020-03-19 0000876883 mdca:HunterPRLLCMember 2019-04-01 2019-04-01 0000876883 mdca:SloaneandCompanyLLCMember 2020-02-14 2020-02-14 0000876883 country:CA 2020-01-01 2020-06-30 0000876883 country:CA 2019-04-01 2019-06-30 0000876883 mdca:OtherGeographicalLocationMember 2020-01-01 2020-06-30 0000876883 country:US 2019-04-01 2019-06-30 0000876883 country:CA 2020-04-01 2020-06-30 0000876883 mdca:OtherGeographicalLocationMember 2019-01-01 2019-06-30 0000876883 country:US 2020-04-01 2020-06-30 0000876883 mdca:OtherGeographicalLocationMember 2020-04-01 2020-06-30 0000876883 country:US 2020-01-01 2020-06-30 0000876883 country:CA 2019-01-01 2019-06-30 0000876883 mdca:OtherGeographicalLocationMember 2019-04-01 2019-06-30 0000876883 country:US 2019-01-01 2019-06-30 0000876883 mdca:OtherMember 2019-01-01 2019-06-30 0000876883 us-gaap:HealthCareMember 2020-01-01 2020-06-30 0000876883 us-gaap:HealthCareMember 2020-04-01 2020-06-30 0000876883 mdca:AutomotiveMember 2019-04-01 2019-06-30 0000876883 mdca:ConsumerProductsMember 2020-04-01 2020-06-30 0000876883 mdca:FinancialsMember 2019-04-01 2019-06-30 0000876883 mdca:FoodBeverageMember 2019-01-01 2019-06-30 0000876883 us-gaap:RetailMember 2019-01-01 2019-06-30 0000876883 mdca:FoodBeverageMember 2020-01-01 2020-06-30 0000876883 mdca:CommunicationsMember 2019-01-01 2019-06-30 0000876883 mdca:CommunicationsMember 2020-04-01 2020-06-30 0000876883 mdca:ConsumerProductsMember 2019-01-01 2019-06-30 0000876883 mdca:TechnologyMember 2020-04-01 2020-06-30 0000876883 mdca:TechnologyMember 2019-04-01 2019-06-30 0000876883 mdca:ConsumerProductsMember 2019-04-01 2019-06-30 0000876883 mdca:FinancialsMember 2019-01-01 2019-06-30 0000876883 mdca:FoodBeverageMember 2019-04-01 2019-06-30 0000876883 mdca:CommunicationsMember 2020-01-01 2020-06-30 0000876883 mdca:FoodBeverageMember 2020-04-01 2020-06-30 0000876883 mdca:AutomotiveMember 2020-01-01 2020-06-30 0000876883 mdca:TransportationandTravelLodgingMember 2020-01-01 2020-06-30 0000876883 mdca:AutomotiveMember 2019-01-01 2019-06-30 0000876883 us-gaap:RetailMember 2020-01-01 2020-06-30 0000876883 mdca:CommunicationsMember 2019-04-01 2019-06-30 0000876883 mdca:OtherMember 2019-04-01 2019-06-30 0000876883 us-gaap:RetailMember 2019-04-01 2019-06-30 0000876883 mdca:TransportationandTravelLodgingMember 2019-01-01 2019-06-30 0000876883 us-gaap:HealthCareMember 2019-01-01 2019-06-30 0000876883 us-gaap:RetailMember 2020-04-01 2020-06-30 0000876883 mdca:TransportationandTravelLodgingMember 2020-04-01 2020-06-30 0000876883 mdca:FinancialsMember 2020-01-01 2020-06-30 0000876883 mdca:TechnologyMember 2020-01-01 2020-06-30 0000876883 mdca:OtherMember 2020-01-01 2020-06-30 0000876883 mdca:OtherMember 2020-04-01 2020-06-30 0000876883 mdca:AutomotiveMember 2020-04-01 2020-06-30 0000876883 us-gaap:HealthCareMember 2019-04-01 2019-06-30 0000876883 mdca:FinancialsMember 2020-04-01 2020-06-30 0000876883 mdca:TransportationandTravelLodgingMember 2019-04-01 2019-06-30 0000876883 mdca:TechnologyMember 2019-01-01 2019-06-30 0000876883 mdca:ConsumerProductsMember 2020-01-01 2020-06-30 0000876883 mdca:ContingentRestrictedStockUnitsRSUsMember 2019-01-01 2019-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-04-01 2019-06-30 0000876883 mdca:ContingentRestrictedStockUnitsRSUsMember 2020-01-01 2020-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2020-04-01 2020-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-01-01 2019-06-30 0000876883 2019-01-01 2019-12-31 0000876883 mdca:FixedpaymentsMember 2020-06-30 0000876883 mdca:FixedpaymentsMember 2019-12-31 0000876883 mdca:ContingentPaymentMember 2020-01-01 2020-06-30 0000876883 mdca:ContingentPaymentMember 2019-01-01 2019-06-30 0000876883 mdca:ContingentPaymentMember 2020-04-01 2020-06-30 0000876883 mdca:ContingentPaymentMember 2019-04-01 2019-06-30 0000876883 mdca:AmendmentCreditAgreementMember us-gaap:LineOfCreditMember 2019-03-12 0000876883 mdca:A6.50Notesdue2024Member us-gaap:SeniorNotesMember 2020-04-30 0000876883 srt:ScenarioForecastMember mdca:AmendmentCreditAgreementMember us-gaap:LineOfCreditMember 2020-12-31 0000876883 mdca:A6.50Notesdue2024Member us-gaap:SeniorNotesMember 2016-03-23 0000876883 mdca:A6.50Notesdue2024Member us-gaap:SeniorNotesMember 2020-04-01 2020-04-30 0000876883 mdca:A6.50Notesdue2024Member us-gaap:SeniorNotesMember 2019-06-30 0000876883 mdca:A6.50Notesdue2024Member us-gaap:SeniorNotesMember 2016-03-23 2016-03-23 0000876883 us-gaap:RevolvingCreditFacilityMember mdca:WellsFargoCapitalFinanceLlcMember 2016-05-03 0000876883 mdca:TerminationdisabilityordeathMember 2020-06-30 0000876883 mdca:VestingoverperiodMember 2020-06-30 0000876883 mdca:TheCompanyMember 2020-06-30 0000876883 mdca:AcquisitionValueinexcessofRedemptionValueMember 2020-06-30 0000876883 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2020-06-30 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2017-03-07 2017-03-07 0000876883 mdca:Series6ConvertiblePreferredSharesMember us-gaap:PreferredStockMember 2019-03-14 0000876883 mdca:Series6ConvertiblePreferredSharesMember us-gaap:PreferredStockMember 2020-06-30 0000876883 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-14 2019-03-14 0000876883 mdca:ContingentConsiderationLiabilitySettlementsDomain mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-03-14 2019-03-14 0000876883 mdca:Series6ConvertiblePreferredSharesMember us-gaap:PreferredStockMember 2020-01-01 2020-06-30 0000876883 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-12-31 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-03-14 0000876883 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-12-31 0000876883 mdca:Series4ConvertiblePreferredStockMember us-gaap:PreferredStockMember 2017-03-07 0000876883 mdca:Series6ConvertiblePreferredSharesMember us-gaap:PreferredStockMember 2019-03-14 2019-03-14 0000876883 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2020-06-30 0000876883 us-gaap:AdditionalPaidInCapitalMember 2019-03-14 2019-03-14 0000876883 mdca:Series6ConvertiblePreferredSharesMember us-gaap:PreferredStockMember 2017-03-07 0000876883 us-gaap:PreferredStockMember 2017-03-07 0000876883 us-gaap:PreferredStockMember 2019-03-14 2019-03-14 0000876883 mdca:A6.50Notesdue2024Member us-gaap:FairValueInputsLevel1Member us-gaap:SeniorNotesMember 2019-12-31 0000876883 mdca:A6.50Notesdue2024Member us-gaap:FairValueInputsLevel1Member us-gaap:SeniorNotesMember 2020-06-30 0000876883 2017-01-01 2017-12-31 0000876883 srt:ScenarioPreviouslyReportedMember 2019-01-01 2019-12-31 0000876883 srt:RestatementAdjustmentMember 2017-01-01 2017-12-31 0000876883 srt:ScenarioPreviouslyReportedMember 2017-01-01 2017-12-31 0000876883 srt:RestatementAdjustmentMember 2018-01-01 2018-12-31 0000876883 srt:RestatementAdjustmentMember 2019-01-01 2019-12-31 0000876883 2018-01-01 2018-12-31 0000876883 srt:ScenarioPreviouslyReportedMember 2018-01-01 2018-12-31 0000876883 srt:RestatementAdjustmentMember 2016-01-01 2016-12-31 0000876883 srt:ScenarioPreviouslyReportedMember 2019-12-31 0000876883 srt:RestatementAdjustmentMember 2018-12-31 0000876883 srt:ScenarioPreviouslyReportedMember 2018-12-31 0000876883 srt:RestatementAdjustmentMember 2019-12-31 0000876883 mdca:DevelopmentofAdvertisingTechnologyMember mdca:StagwellSubsidiaryMember 2020-06-30 0000876883 mdca:ServicesProvidedBySubisidiaryMember mdca:StagwellSubsidiaryMember 2020-06-30 0000876883 mdca:OtherCompanyMember srt:BoardOfDirectorsChairmanMember 2020-01-01 2020-01-01 0000876883 mdca:GlobalIntegratedAgenciesGroupAMember 2020-01-01 2020-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupBMember 2019-01-01 2019-06-30 0000876883 mdca:AllOtherMember 2020-04-01 2020-06-30 0000876883 mdca:MediaServicesMember 2019-01-01 2019-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupBMember 2020-01-01 2020-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupBMember 2020-04-01 2020-06-30 0000876883 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupAMember 2019-01-01 2019-06-30 0000876883 mdca:MediaServicesMember 2020-01-01 2020-06-30 0000876883 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0000876883 us-gaap:CorporateNonSegmentMember 2020-04-01 2020-06-30 0000876883 mdca:AllOtherMember 2020-01-01 2020-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupAMember 2020-04-01 2020-06-30 0000876883 mdca:MediaServicesMember 2020-04-01 2020-06-30 0000876883 mdca:AllOtherMember 2019-01-01 2019-06-30 0000876883 mdca:AllOtherMember 2019-04-01 2019-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupAMember 2019-04-01 2019-06-30 0000876883 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-06-30 0000876883 mdca:MediaServicesMember 2019-04-01 2019-06-30 0000876883 mdca:GlobalIntegratedAgenciesGroupBMember 2019-04-01 2019-06-30 mdca:vote iso4217:USD xbrli:shares iso4217:USD xbrli:pure xbrli:shares mdca:reportable_segment

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q
(Mark One) 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 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.)
 
 
 
 
330 Hudson Street, 10th Floor
 
 
New York,
New York
 
10013
(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 July 24, 2020 was 72,740,767 Class A subordinate voting shares and 3,743 Class B multiple voting shares.




MDC PARTNERS INC.
 
QUARTERLY REPORT ON FORM 10-Q
 
TABLE OF CONTENTS
 
 
 
Page
 
PART I. FINANCIAL INFORMATION
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
PART II. OTHER INFORMATION
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

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.

2


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 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.


3


PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements
MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(thousands of United States dollars, except per share amounts)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenue:
 

 
 

 
 
 
 
Services
$
259,678

 
$
362,130

 
$
587,420

 
$
690,921

Operating Expenses:
 
 
 
 
 
 
 
Cost of services sold
165,632

 
240,749

 
388,325

 
477,903

Office and general expenses
66,210

 
87,276

 
132,563

 
154,394

Depreciation and amortization
8,899

 
10,663

 
18,105

 
19,501

Impairment and other losses
18,839

 

 
19,000

 

 
259,580

 
338,688

 
557,993

 
651,798

Operating income
98

 
23,442

 
29,427

 
39,123

Other Income (Expenses):
 
 
 
 
 
 
 
Interest expense and finance charges, net
(15,941
)
 
(16,413
)
 
(31,553
)
 
(33,174
)
Foreign exchange gain (loss)
5,342

 
2,932

 
(9,415
)
 
8,374

Other, net
5,884

 
(746
)
 
22,218

 
(4,128
)
 
(4,715
)
 
(14,227
)
 
(18,750
)
 
(28,928
)
Income (loss) before income taxes and equity in earnings of non-consolidated affiliates
(4,617
)
 
9,215

 
10,677

 
10,195

Income tax expense (benefit)
(7,923
)
 
2,088

 
5,577

 
2,835

Income before equity in earnings of non-consolidated affiliates
3,306

 
7,127

 
5,100

 
7,360

Equity in earnings (losses) of non-consolidated affiliates
(798
)
 
206

 
(798
)
 
289

Net income
2,508

 
7,333

 
4,302

 
7,649

Net income attributable to the noncontrolling interest
(3,101
)
 
(3,043
)
 
(3,892
)
 
(3,472
)
Net income (loss) attributable to MDC Partners Inc.
(593
)
 
4,290

 
410

 
4,177

Accretion on and net income allocated to convertible preference shares
(3,509
)
 
(3,515
)
 
(6,949
)
 
(5,625
)
Net income (loss) attributable to MDC Partners Inc. common shareholders
$
(4,102
)
 
$
775

 
$
(6,539
)
 
$
(1,448
)
Income (loss) Per Common Share:
 

 
 

 
 
 
 
Basic
 

 
 

 
 
 
 
Net income (loss) attributable to MDC Partners Inc. common shareholders
$
(0.06
)
 
$
0.01

 
$
(0.09
)
 
$
(0.02
)
Diluted
 
 
 
 
 
 
 
Net income (loss) attributable to MDC Partners Inc. common shareholders
$
(0.06
)
 
$
0.01

 
$
(0.09
)
 
$
(0.02
)
Weighted Average Number of Common Shares Outstanding:
 

 
 

 
 
 
 
Basic
72,528,455

 
71,915,832

 
72,463,058

 
66,118,749

Diluted
72,528,455

 
72,024,689

 
72,463,058

 
66,118,749


See notes to the Unaudited Condensed Consolidated Financial Statements.

4


MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(thousands of United States dollars)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Comprehensive Income (Loss)
 
 
 

 
 
 
 
Net income
$
2,508

 
$
7,333

 
$
4,302

 
$
7,649

Other comprehensive income (loss), net of applicable tax:
 

 
 

 
 
 
 
Foreign currency translation adjustment
1,367

 
(1,385
)
 
8,796

 
(6,044
)
Other comprehensive income (loss)
1,367

 
(1,385
)
 
8,796

 
(6,044
)
Comprehensive income (loss) for the period
3,875

 
5,948

 
13,098

 
1,605

Comprehensive income attributable to the noncontrolling interests
(3,511
)
 
(3,081
)
 
(3,793
)
 
(3,861
)
Comprehensive income (loss) attributable to MDC Partners Inc.
$
364

 
$
2,867

 
$
9,305

 
$
(2,256
)
See notes to the Unaudited Condensed Consolidated Financial Statements.

5


MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars)
 
June 30,
2020
 
December 31,
2019
 
 
 
(as adjusted) 
ASSETS
 

 
 

Current Assets:
 

 
 

Cash and cash equivalents
$
85,483

 
$
106,933

Accounts receivable, less allowance for doubtful accounts of $1,875 and $3,304
359,306

 
449,288

Expenditures billable to clients
19,426

 
30,133

Other current assets
66,318

 
35,613

Total Current Assets
530,533

 
621,967

Fixed assets, at cost, less accumulated depreciation of $134,529 and $129,579
70,787

 
81,054

Right of use assets - operating leases
238,230

 
223,622

Goodwill
706,946

 
731,691

Other intangible assets, net
48,904

 
54,893

Deferred tax assets
82,696

 
84,900

Other assets
27,356

 
30,179

Total Assets
$
1,705,452

 
$
1,828,306

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ DEFICIT
 
 
 

Current Liabilities:
 

 
 

Accounts payable
$
148,349

 
$
200,148

Accruals and other liabilities
264,572

 
353,575

Advance billings
136,196

 
171,742

Current portion of lease liabilities - operating leases
38,377

 
48,659

Current portion of deferred acquisition consideration
36,655

 
45,521

Total Current Liabilities
624,149

 
819,645

Long-term debt
922,537

 
887,630

Long-term portion of deferred acquisition consideration
2,597

 
29,699

Long-term lease liabilities - operating leases
267,559

 
219,163

Other liabilities
36,503

 
25,771

Total Liabilities
1,853,345

 
1,981,908

Redeemable Noncontrolling Interests
36,710

 
36,973

Commitments, Contingencies, and Guarantees (Note 9)


 


Shareholders’ Deficit:
 
 
 
Convertible preference shares, 145,000 authorized, issued and outstanding at June 30, 2020 and December 31, 2019
152,746

 
152,746

Common stock and other paid-in capital
98,234

 
101,469

Accumulated deficit
(480,368
)
 
(480,779
)
Accumulated other comprehensive loss (income)
4,627

 
(4,269
)
MDC Partners Inc. Shareholders' Deficit
(224,761
)
 
(230,833
)
Noncontrolling interests
40,158

 
40,258

Total Shareholders' Deficit
(184,603
)
 
(190,575
)
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Deficit
$
1,705,452

 
$
1,828,306

See notes to the Unaudited Condensed Consolidated Financial Statements.

6


MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars)


 
Six Months Ended June 30,

2020
 
2019
Cash flows from operating activities:
 

 
 

Net income
$
4,302

 
$
7,649

Adjustments to reconcile net income to cash used in operating activities:
 
 
 
Stock-based compensation
4,109

 
6,606

Depreciation and amortization
18,105

 
19,501

Impairment and other losses
19,000

 

Adjustment to deferred acquisition consideration
(2,288
)
 
(5,570
)
Deferred income taxes
2,114

 
2,835

Foreign exchange and other
(4,578
)
 
(6,721
)
Changes in working capital:
 
 
 
Accounts receivable
88,039

 
(21,570
)
Expenditures billable to clients
10,707

 
1,763

Prepaid expenses and other current assets
(4,363
)
 
(3,345
)
Accounts payable, accruals and other current liabilities
(127,188
)
 
(66,343
)
Acquisition related payments
(6,215
)
 
(4,376
)
Advance billings
(35,422
)
 
29,334

Net cash used in operating activities
(33,678
)

(40,237
)
Cash flows from investing activities:
 
 
 
Capital expenditures
(3,690
)
 
(7,923
)
Proceeds from sale of assets
19,616

 
23,050

Acquisitions, net of cash acquired
(729
)
 
(5,130
)
Other investments
(554
)
 
(179
)
Net cash provided by investing activities
14,643


9,818

Cash flows from financing activities:
 

 
 

Repayments of borrowings under revolving credit facility
(251,328
)
 
(834,538
)
Proceeds from borrowings under revolving credit facility
313,828

 
793,940

Proceeds from issuance of common and convertible preference shares, net of issuance costs

 
98,620

Acquisition related payments
(30,885
)
 
(24,219
)
Other
(11,050
)
 
(8,091
)
Repurchase of Senior Notes
(21,999
)
 

Net cash provided by (used in) financing activities
(1,434
)

25,712

Effect of exchange rate changes on cash, cash equivalents, and cash held in trusts
(981
)
 
4

Net decrease in cash and cash equivalents, including cash classified within current assets held for sale
(21,450
)
 
(4,703
)
Change in cash and cash equivalents held in trusts classified within held for sale

 
(3,307
)
Change in cash and cash equivalents classified within assets held for sale

 
4,441

Net decrease in cash and cash equivalents
(21,450
)
 
(3,569
)
Cash and cash equivalents at beginning of period
106,933


30,873

Cash and cash equivalents at end of period
$
85,483


$
27,304

Supplemental disclosures:
 

 
 

Cash income taxes paid
$
2,566


$
3,494

Cash interest paid
$
28,736


$
31,643

See notes to the Unaudited Condensed Consolidated Financial Statements.

7


MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT
(thousands of United States dollars, except share amounts)






 
Three Months Ended
 
June 30, 2020
 
Convertible Preference Shares

Common Shares
 
Common Stock and Other Paid-in Capital
 
Accumulated Deficit
 
Accumulated Other Comprehensive Income (Loss)

MDC Partners Inc. Shareholders' Deficit

Noncontrolling Interests

Total Shareholder's Deficit
 

 
 
 



 
Shares
 
Amount

Shares
 
 
 



Balance at March 31, 2020 (as adjusted)
145,000

 
$
152,746

 
72,483,166

 
$
99,587

 
$
(479,694
)
 
$
3,669

 
$
(223,692
)
 
$
39,749

 
$
(183,943
)
Net loss attributable to MDC Partners Inc.

 

 

 

 
(593
)
 

 
(593
)
 

 
(593
)
Other comprehensive income

 

 

 

 

 
957

 
957

 
410

 
1,367

Vesting of restricted awards

 

 
173,334

 

 

 

 

 

 

Shares acquired and cancelled

 

 
(69,110
)
 
(95
)
 

 

 
(95
)
 

 
(95
)
Stock-based compensation

 

 

 
557

 

 

 
557

 

 
557

Changes in redemption value of redeemable noncontrolling interests

 

 

 
(1,412
)
 

 

 
(1,412
)
 

 
(1,412
)
Other

 

 

 
(403
)
 
(81
)
 
1

 
(483
)
 
(1
)
 
(484
)
Balance at June 30, 2020
145,000

 
$
152,746

 
72,587,390

 
$
98,234

 
$
(480,368
)
 
$
4,627

 
$
(224,761
)
 
$
40,158

 
$
(184,603
)

 
Six Months Ended
 
June 30, 2020
 
Convertible Preference Shares
 
Common Shares
 
Common Stock and Other Paid-in Capital
 
Accumulated Deficit
 
Accumulated Other Comprehensive Income (Loss)
 
MDC Partners Inc. Shareholders' Deficit
 
Noncontrolling Interests
 
Total Shareholder's Deficit
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Shares
 
 
 
 
 
 
Balance at December 31, 2019 (as adjusted)
145,000

 
$
152,746

 
72,154,603

 
$
101,469

 
$
(480,779
)
 
$
(4,269
)
 
$
(230,833
)
 
$
40,258

 
$
(190,575
)
Net income attributable to MDC Partners Inc.

 

 

 

 
410

 

 
410

 

 
410

Other comprehensive income

 

 

 

 

 
8,895

 
8,895

 
(99
)
 
8,796

Vesting of restricted awards

 

 
760,561

 

 

 

 

 

 

Shares acquired and cancelled

 

 
(327,774
)
 
(732
)
 

 

 
(732
)
 

 
(732
)
Stock-based compensation

 

 

 
1,033

 

 

 
1,033

 

 
1,033

Changes in redemption value of redeemable noncontrolling interests

 

 

 
(2,630
)
 

 

 
(2,630
)
 

 
(2,630
)
Business acquisitions and step-up transactions, net of tax

 

 

 
(503
)
 

 

 
(503
)
 

 
(503
)
Other

 

 

 
(403
)
 
1

 
1

 
(401
)
 
(1
)
 
(402
)
Balance at June 30, 2020
145,000

 
$
152,746

 
72,587,390

 
$
98,234

 
$
(480,368
)
 
$
4,627

 
$
(224,761
)
 
$
40,158

 
$
(184,603
)














See notes to the Unaudited Condensed Consolidated Financial Statements.


8


MDC PARTNERS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT - (continued)
(thousands of United States dollars, except share amounts)


 
Three Months Ended
 
June 30, 2019
 
Convertible Preference Shares
 
Common Shares
 
Common Stock and Other Paid-in Capital
 
Accumulated Deficit
 
Accumulated Other Comprehensive Income (Loss)
 
MDC Partners Inc. Shareholders' Deficit
 
Noncontrolling Interests
 
Total Shareholder's Deficit
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Shares
 
 
 
 
 
 
Balance at March 31, 2019 (as adjusted)
145,000

 
$
152,117

 
71,890,021

 
$
98,693

 
$
(475,639
)
 
$
(290
)
 
$
(225,119
)
 
$
40,223

 
$
(184,896
)
Net income attributable to MDC Partners Inc.

 

 

 

 
4,290

 

 
4,290

 

 
4,290

Other comprehensive loss

 

 

 

 

 
(1,423
)
 
(1,423
)
 
38

 
(1,385
)
Issuance of common and convertible preference shares

 
629

 

 
362

 

 

 
991

 

 
991

Vesting of restricted awards

 

 
76,979

 

 

 

 

 

 

Shares acquired and cancelled

 

 
(19,257
)
 
(22
)
 

 

 
(22
)
 

 
(22
)
Stock-based compensation

 

 

 
1,800

 

 

 
1,800

 

 
1,800

Changes in redemption value of redeemable noncontrolling interests

 

 

 
(3,190
)
 

 

 
(3,190
)
 

 
(3,190
)
Business acquisitions and step-up transactions, net of tax

 

 

 
(97
)
 

 

 
(97
)
 

 
(97
)
Changes in ownership interest

 

 

 
(91
)
 

 

 
(91
)
 

 
(91
)
Balance at June 30, 2019 (as adjusted)
145,000

 
$
152,746

 
71,947,743

 
$
97,455

 
$
(471,349
)
 
$
(1,713
)
 
$
(222,861
)
 
$
40,261

 
$
(182,600
)

 
Six Months Ended
 
June 30, 2019
 
Convertible Preference Shares
 
Common Shares
 
Common Stock and Other Paid-in Capital
 
Accumulated Deficit
 
Accumulated Other Comprehensive Income
 
MDC Partners Inc. Shareholders' Deficit
 
Noncontrolling Interests
 
Total Shareholder's Deficit
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Shares
 
 
 
 
 
 
Balance at December 31, 2018 (as adjusted)
95,000

 
$
90,123

 
57,521,323

 
$
58,579

 
$
(475,526
)
 
$
4,720

 
$
(322,104
)
 
$
64,514

 
$
(257,590
)
Net income attributable to MDC Partners Inc.

 

 

 

 
4,177

 

 
4,177

 

 
4,177

Other comprehensive loss

 

 

 

 

 
(6,433
)
 
(6,433
)
 
389

 
(6,044
)
Issuance of common and convertible preference shares
50,000

 
62,623

 
14,285,714

 
35,997

 

 

 
98,620

 

 
98,620

Vesting of restricted awards

 

 
193,979

 

 

 

 

 

 

Shares acquired and cancelled

 

 
(53,273
)
 
(78
)
 

 

 
(78
)
 

 
(78
)
Stock-based compensation

 

 

 
509

 

 

 
509

 

 
509

Changes in redemption value of redeemable noncontrolling interests

 

 

 
2,729

 

 

 
2,729

 

 
2,729

Business acquisitions and step-up transactions, net of tax

 

 

 
(97
)
 

 

 
(97
)
 

 
(97
)
Changes in ownership interest

 

 

 
(184
)
 

 

 
(184
)
 
(24,642
)
 
(24,826
)
Balance at June 30, 2019 (as adjusted)
145,000

 
$
152,746

 
71,947,743

 
$
97,455

 
$
(471,349
)
 
$
(1,713
)
 
$
(222,861
)
 
$