MDC Partners Inc (MDCA) saw its loss narrow to $10.57 million, or $0.21 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $23.29 million, or $0.47 a share. Revenue during the quarter grew 11.54 percent to $344.70 million from $309.04 million in the previous year period. Gross margin for the quarter contracted 50 basis points over the previous year period to 31.08 percent. Total expenses were 97.56 percent of quarterly revenues, up from 97.23 percent for the same period last year. That has resulted in a contraction of 33 basis points in operating margin to 2.44 percent.
Operating income for the quarter was $8.40 million, compared with $8.55 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $35.81 million compared with $32.82 million in the prior year period. At the same time, adjusted EBITDA margin contracted 23 basis points in the quarter to 10.39 percent from 10.62 percent in the last year period.
Scott Kauffman, Chairman and Chief Executive Officer of MDC Partners, said, “We are pleased to enter 2017 with renewed revenue and earnings momentum and a significantly strengthened balance sheet. Our organic revenue growth accelerated to 5.6% in the quarter with very strong 8.9% growth in the U.S. as our portfolio of world-class agencies are winning market share. In the quarter we won $26 million of net annualized revenue and the new business pipeline continues to be robust. We are excited about what the remainder of the year holds.”
Operating cash flow remains negative
MDC Partners Inc has spent $30.68 million cash to meet operating activities during the quarter as against cash outgo of $122.42 million in the last year period. The company has spent $11.09 million cash to meet investing activities during the quarter as against cash outgo of $8.13 million in the last year period.
Cash flow from financing activities was $37.09 million for the quarter, down 59.88 percent or $55.35 million, when compared with the last year period.
Cash and cash equivalents stood at $23.19 million as on Mar. 31, 2017, up 6.16 percent or $1.35 million from $21.84 million on Mar. 31, 2016.
Working capital remains negative
Working capital of MDC Partners Inc was negative $279.98 million on Mar. 31, 2017 compared with negative $274.04 million on Mar. 31, 2016. Current ratio was at 0.66 as on Mar. 31, 2017, up from 0.64 on Mar. 31, 2016.
Days sales outstanding went down to 103 days for the quarter compared with 111 days for the same period last year.
At the same time, days payable outstanding went down to 116 days for the quarter from 145 for the same period last year.
Debt comes down marginally
MDC Partners Inc has recorded a decline in total debt over the last one year. It stood at $887.53 million as on Mar. 31, 2017, down 1.07 percent or $9.58 million from $897.11 million on Mar. 31, 2016. Total debt was 54.56 percent of total assets as on Mar. 31, 2017, compared with 57.08 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.50 for the quarter from 0.55 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
