MDCA MDC Partners

MDC Partners, Inc. engages in the provision of marketing, advertising, activation, communications and strategic consulting solutions. It operates through the following business segments: Global Integrated Agencies, Domestic Creative Agencies, Specialist Communications, Media Services, All Other and Corporate. The Global Integrated Agencies segment offers a range of different services for its clients, including strategy, creative, and production for advertising campaigns across a variety of platforms such as print, digital, social media, and television broadcast. The Domestic Creative Agencies segment comprises of five partner firms that are national advertising agencies leveraging creative capabilities at its core. The Specialist Communications segment consists of five partner firms that are each communications agencies with core service offerings in public relations, and related communications services. The Media Services segment focuses on media buying and planning as its core competency. The All Other segment represents the remaining partner firms that provide a range of diverse marketing communication services but are not eligible for aggregation with the reportable segments. The Corporate segment deals with the client and business development support to the Partner Firms as well as certain strategic resources, including accounting, administrative, financial, real estate, human resource, and legal functions. The company was founded on December 19, 1986 and is headquartered in New York, NY.
Company profile
Ticker
MDCA
Exchange
Website
CEO
Mark Penn
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Omnicom • Interpublic Group Of Cos. • Criteo S.A • AirNet Technology • Telaria • SRAX • Groupon • Innerscope Hearing • PARTS iD • Starco Brands ...
Former names
MDC COMMUNICATIONS CORP, MDC CORP INC
SEC CIK
Corporate docs
IRS number
980364441
MDCA stock data
()
Press releases
SHAREHOLDER ALERT: WeissLaw LLP Reminds MDCA, PTVCA, CBLI, and WIFI Shareholders About Its Ongoing Investigations
9 Apr 21
Amid Accelerated Momentum, MDC Partners Hires Central Investor Relations Executive
9 Apr 21
John Boiler Named as Chair of MDC's Constellation Group of Companies
7 Apr 21
INVESTIGATION ALERT: Halper Sadeh LLP Investigates HWCC, PFBI, HGV, MDCA; Shareholders are Encouraged to Contact the Firm
5 Apr 21
SHAREHOLDER ALERT: WeissLaw LLP Reminds MDCA, FFG, PTVCA, and CBLI Shareholders About Its Ongoing Investigations
2 Apr 21
Calendar
16 Mar 21
11 Apr 21
31 Dec 21
Financial summary
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Financial data from company earnings reports.
Cash burn rate (estimated) | Burn method: Change in cash | Burn method: Operating income/loss | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 60.76M | 60.76M | 60.76M | 60.76M | 60.76M | 60.76M |
Cash burn (monthly) | (positive/no burn) | 3.85M | 34.69M | 3.81M | (positive/no burn) | (positive/no burn) |
Cash used (since last report) | n/a | 12.98M | 117.06M | 12.87M | n/a | n/a |
Cash remaining | n/a | 47.77M | -56.3M | 47.89M | n/a | n/a |
Runway (months of cash) | n/a | 12.4 | -1.6 | 12.6 | n/a | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
26 Feb 21 | Ross David Corwin | Class A Subordinate Voting Shares | Payment of exercise | Dispose F | No | No | 3.23 | 26,704 | 86.25K | 344,327 |
26 Feb 21 | Ross David Corwin | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 43,807 | 0 | 371,031 |
26 Feb 21 | Ross David Corwin | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 9,852 | 0 | 414,838 |
26 Feb 21 | Penn Mark Jeffery | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 28,449 | 0 | 574,051 |
26 Feb 21 | Vincenzo Dimaggio | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 1,642 | 0 | 76,691 |
26 Feb 21 | Lanuto Frank P | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 4,877 | 0 | 194,123 |
30 Sep 20 | Mirsky Jonathan B. | Class A Subordinate Voting Shares | Sale back to company | Dispose D | No | No | 0 | 105,875 | 0 | 145,754 |
30 Sep 20 | Mirsky Jonathan B. | Class A Subordinate Voting Shares | Payment of exercise | Dispose F | No | No | 1.61 | 80,121 | 128.99K | 251,269 |
Institutional ownership Q4 2020
Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.
84.2% owned by funds/institutions
13F holders |
Current |
---|---|
Total holders | 61 |
Opened positions | 17 |
Closed positions | 12 |
Increased positions | 13 |
Reduced positions | 13 |
13F shares |
Current |
---|---|
Total value | 151.68M |
Total shares | 62.11M |
Total puts | 23K |
Total calls | 38.5K |
Total put/call ratio | 0.6 |
Largest owners |
Shares | Value |
---|---|---|
Stagwell Agency | 14.66M | $32.69M |
Indaba Capital Management | 9.38M | $23.54M |
Hotchkis & Wiley Capital Management | 7.94M | $19.94M |
Madison Avenue Partners | 3.87M | $9.72M |
Schroder Investment Management | 3.84M | $9.63M |
Stonehill Capital Management | 3.05M | $7.65M |
Redwood Capital Management | 2.5M | $6.28M |
Vanguard | 2.39M | $5.99M |
WFC Wells Fargo & Co. | 2.38M | $6.17M |
MS Morgan Stanley | 2.17M | $5.44M |
Financial report summary
?Risks
- Risks Relating to Our Business and Operations
- MDC competes for clients in highly competitive industries.
- MDC’s business could be adversely affected if it loses key clients.
- MDC’s ability to generate new business from new and existing clients may be limited.
- MDC’s business and results of operations have been adversely affected and could in the future be materially adversely affected by the COVID-19 pandemic.
- MDC’s business could be adversely affected if it loses or fails to attract or retain key executives or employees.
- MDC is exposed to the risk of client defaults.
- MDC is subject to regulations and litigation risk that could restrict our activities or negatively impact our revenues.
- Some of MDC’s Partner Firms rely upon signatory service companies to employ union performers in commercials.
- We rely extensively on information technology systems and cybersecurity incidents could adversely affect us.
- MDC is consolidating its real estate footprint and may incur significant costs in doing so.
- Risks Relating to Our Financial Condition and Results
- Future economic and financial conditions could adversely impact our financial condition and results.
- If our available liquidity is insufficient, our financial condition could be adversely affected and we may be unable to fund contingent deferred acquisition liabilities, and any put options if exercised.
- MDC’s results of operations are subject to currency fluctuation risks.
- Goodwill, intangible assets and right-of-use assets may become impaired.
- Risks Relating to Our Class A Shares
- Future issuances of equity securities, which may include securities that would rank senior to our Class A shares, may cause dilution to our existing shareholders and adversely affect the market price of our Class A shares.
- Risks Relating to Our Indebtedness
- Our substantial indebtedness could adversely affect our cash flow and prevent us from fulfilling our obligations, including the Senior Notes.
- Despite our current debt levels, we may be able to incur substantially more indebtedness, which could further increase the risks associated with our leverage.
- We are a holding company dependent on our subsidiaries for our ability to service our debt.
- Risks Relating to the Proposed Transactions
- The Proposed Transactions may give rise to taxable income in the United States for the Company and its subsidiaries, and there can be no assurances that material adverse tax consequences will not result from the Proposed Transactions or related transactions in Canada, the U.S., or other jurisdictions. Any such adverse tax consequences could adversely affect the Combined Company or its share price, following completion of the Proposed Transactions.
- The Redomiciliation may give rise to significant Canadian corporate tax.
- If the IRS does not agree with the Company’s determination of the “all earnings and profits amount” attributable to the Company’s shares, certain U.S. Holders may owe a higher than anticipated amount of U.S. federal income taxes as a result of the Proposed Transactions (and specifically, the Redomiciliation).
- Completion of the Proposed Transactions may affect the timing of audit or reassessments by tax authorities.
- The Company will allocate time and resources to effecting the Proposed Transactions and incur non-recurring costs related to the Proposed Transactions.
- The calculation of the number of Stagwell OpCo Units and the Stagwell Class C Shares to be issued will not be adjusted if there is a change in the value of Stagwell or its assets or the value of MDC before the Proposed Transactions are completed.
- The Proposed Transactions may not be completed on the terms or timeline currently contemplated, or at all, as MDC and Stagwell may be unable to satisfy the conditions or obtain the approvals required to complete the Proposed Transactions or such approvals may contain material restrictions or conditions.
- Failure to complete the Proposed Transactions could adversely affect the market price of the Company’s Class A Shares as well as its business, financial condition and results of operations.
- Investors holding the Company’s shares prior to the completion of the Proposed Transactions will, in the aggregate, have a significantly reduced ownership and voting interest in the Combined Company after the Proposed Transactions and will exercise less influence over management.
- The announcement and pendency of the Proposed Transactions could have an adverse effect on the stock price of the Class A Shares as well as the business, financial condition, results of operations or business prospects of MDC and Stagwell.
- Some of MDC’s directors and executive officers have interests in seeing the Proposed Transactions completed that may be different from, or in addition to, those of other MDC Canada Shareholders.
- MDC and Stagwell may have difficulty attracting, motivating and retaining executives and other employees in light of the Proposed Transactions.
- Litigation relating to the Transactions could result in an injunction preventing the completion of the Transactions and/or substantial costs to MDC.
- The COVID-19 pandemic triggered an economic crisis which may delay or prevent the consummation of the Proposed Transactions.
- If the Proposed Transactions are consummated, the Combined Company will be subject to certain risks, including tax-related risks.
Management Discussion
- Revenue was $1.20 billion for the twelve months ended December 31, 2020 compared to revenue of $1.42 billion for the twelve months ended December 31, 2019 representing a decrease of $216.8 million, or 15.3%.
- The negative foreign exchange impact of $1.0 million, or 0.1%, was attributable to the fluctuation of the U.S. dollar against the Canadian dollar, Swedish Króna, Euro and British Pound.
- The Company utilizes non-GAAP metrics called organic revenue growth (decline) and non-GAAP acquisitions (dispositions), net, as defined above. For the twelve months ended December 31, 2020, organic revenue decreased by $197.5 million or 13.9%. The decline in revenue from existing Partner Firms was primarily attributable to reduced spending by clients in connection with the COVID-19 pandemic. The change in revenue was primarily driven by a decline in categories including food and beverage, communications, technology, transportation, financials and automotive, partially offset by growth in healthcare.
Content analysis
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Removed:
adjustment, Advertisement, amalgamated, amalgamation, approximating, Bogusky, Branbury, building, caption, carry, Certificate, classification, commenced, competency, conjunction, continuing, Crispin, deductibility, disclose, display, excluding, executing, existence, formed, funded, Gale, HL, implement, inconsistent, Kenna, legally, leveraging, LIBOR, mandatory, nil, pertained, pertaining, Porter, post, practical, pretax, prevented, read, release, Relevent, satisfactory, shift, slower, specialist, statutory, target, topic, transition
Financial reports
10-K
2020 FY
Annual report
16 Mar 21
10-Q
2020 Q3
Quarterly report
29 Oct 20
10-Q
2020 Q2
Quarterly report
10 Aug 20
10-Q
2020 Q1
Quarterly report
11 May 20
10-K/A
2019 FY
Annual report (amended)
29 Apr 20
10-K
2019 FY
Annual report
5 Mar 20
10-Q
2019 Q3
Quarterly report
6 Nov 19
10-Q
2019 Q2
Quarterly report
7 Aug 19
10-Q
2019 Q1
Quarterly report
9 May 19
10-K/A
2018 FY
Annual report (amended)
18 Mar 19
Current reports
8-K
Results of Operations and Financial Condition
2 Mar 21
8-K
MDC Partners Inc. Announces Execution of Supplemental Indenture in Respect of Consent Solicitation
8 Feb 21
8-K
MDC Partners Inc. Announces Receipt of Required Consents in Respect of Consent Solicitation
5 Feb 21
8-K
MDC Partners Inc. Announces Solicitation of Consents for 7.500% Senior Notes due 2024
21 Jan 21
8-K
Entry into a Material Definitive Agreement
13 Jan 21
8-K
Entry into a Material Definitive Agreement
22 Dec 20
8-K
Regulation FD Disclosure
21 Dec 20
8-K
Strategic Plan Implementation Results in Solid Q3 & YTD Results
29 Oct 20
8-K
Other Events
19 Oct 20
8-K
Other Events
6 Oct 20
Registration and prospectus
S-4/A
Registration of securities issued in business combination transactions (amended)
29 Mar 21
425
Business combination disclosure
14 Mar 21
425
Business combination disclosure
14 Mar 21
425
Business combination disclosure
10 Mar 21
425
Business combination disclosure
9 Mar 21
425
Business combination disclosure
9 Mar 21
425
Business combination disclosure
5 Mar 21
425
Business combination disclosure
5 Mar 21
425
Business combination disclosure
2 Mar 21
425
Business combination disclosure
2 Mar 21
Proxies
DEF 14A
Definitive proxy
26 May 20
DEF 14A
Definitive proxy
30 Apr 19
DEFA14A
Additional proxy soliciting materials
22 Apr 19
DEFA14A
Additional proxy soliciting materials
18 Jan 19
DEF 14A
Definitive proxy
26 Apr 18
DEF 14A
Definitive proxy
26 Apr 17
DEF 14A
Definitive proxy
21 Apr 16
DEF 14A
Definitive proxy
27 Apr 15
DEF 14A
Definitive proxy
24 Apr 14
DEF 14A
Definitive proxy
28 Apr 13
Other
UPLOAD
Letter from SEC
10 Feb 19
CORRESP
Correspondence with SEC
15 Jan 19
EFFECT
Notice of effectiveness
9 Jan 18
EFFECT
Notice of effectiveness
9 Jan 18
CORRESP
Correspondence with SEC
7 Jan 18
UPLOAD
Letter from SEC
27 Dec 17
UPLOAD
Letter from SEC
27 Dec 17
UPLOAD
Letter from SEC
8 Nov 17
CORRESP
Correspondence with SEC
18 Oct 17
UPLOAD
Letter from SEC
3 Oct 17
Ownership
4
MDC PARTNERS / Frank P Lanuto ownership change
2 Mar 21
4
MDC PARTNERS / VINCENZO DIMAGGIO ownership change
2 Mar 21
4
MDC PARTNERS / Mark Jeffery Penn ownership change
2 Mar 21
4
MDC PARTNERS / David Corwin Ross ownership change
2 Mar 21
SC 13G/A
MDC PARTNERS / Indaba Capital Management ownership change
16 Feb 21
SC 13G
MDC PARTNERS / Madison Avenue Partners ownership change
15 Feb 21
SC 13G/A
MDC PARTNERS / SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC/ DE ownership change
12 Feb 21
SC 13G/A
MDC PARTNERS / HOTCHKIS & WILEY CAPITAL MANAGEMENT ownership change
11 Feb 21
SC 13D/A
MDC PARTNERS / GOLDMAN SACHS ownership change
23 Dec 20
SC 13D/A
MDC PARTNERS / Stagwell Agency ownership change
22 Dec 20
Transcripts
2020 Q4
Earnings call transcript
2 Mar 21
2020 Q3
Earnings call transcript
31 Oct 20
2020 Q2
Earnings call transcript
11 Aug 20
2020 Q1
Earnings call transcript
29 Apr 20
2019 Q4
Earnings call transcript
28 Feb 20
2019 Q3
Earnings call transcript
9 Nov 19
2019 Q2
Earnings call transcript
12 Aug 19
2019 Q1
Earnings call transcript
13 May 19
2018 Q4
Earnings call transcript
15 Mar 19
2018 Q3
Earnings call transcript
29 Oct 18