MDC Partners Inc (MDCA) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $7.71 million, or $ 0.15 a share in the quarter, against a net loss of $26.22 million, or $0.52 a share in the last year period. Revenue during the quarter grew 8.75 percent to $390.44 million from $359.01 million in the previous year period. Gross margin for the quarter contracted 221 basis points over the previous year period to 33.36 percent. Operating margin for the quarter period stood at positive 6.80 percent as compared to a negative 0.33 percent for the previous year period.
Operating income for the quarter was $26.57 million, compared with an operating loss of $1.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.73 million compared with $65.55 million in the prior year period. At the same time, adjusted EBITDA margin contracted 398 basis points in the quarter to 14.27 percent from 18.26 percent in the last year period.
Scott Kauffman, chairman and chief executive officer of MDC Partners, said, "Although 2016 was challenging in many respects, we finished the year on solid footing and with improved top line momentum across our portfolio of world-class agencies. The recently-announced Goldman Sachs equity investment is exactly the right transaction for us, ensuring that we have the financial flexibility required for our disciplined approach to growth. Combined with the operational initiatives we implemented last year, we are well positioned for 2017 and beyond."
For the fiscal year 2017, MDC Partners Inc expects revenue to grow at 4 percent.
Operating cash flow drops significantly
MDC Partners Inc has generated cash of $5.42 million from operating activities during the year, down 96.67 percent or $157.38 million, when compared with the last year. The company has spent $25.20 million cash to meet investing activities during the year as against cash outgo of $29.89 million in the last year.
The company has spent $15.89 million cash to carry out financing activities during the year as against cash outgo of $190.02 million in the last year period.
Cash and cash equivalents stood at $27.92 million as on Dec. 31, 2016, down 54.57 percent or $33.54 million from $61.46 million on Dec. 31, 2015.
Debt increases substantially
MDC Partners Inc has witnessed an increase in total debt over the last one year. It stood at $936.44 million as on Dec. 31, 2016, up 28.48 percent or $207.55 million from $728.88 million on Dec. 31, 2015. Total debt was 59.37 percent of total assets as on Dec. 31, 2016, compared with 45.83 percent on Dec. 31, 2015. 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
