FOR IMMEDIATE ISSUE
| FOR: | MDC Partners Inc. | CONTACT: | Erica Bartsch | ||||||||||||||||||||
| One World Trade Center, Floor 65 | Sloane & Company | ||||||||||||||||||||||
| New York, NY 10007 | 212-446-1875 | ||||||||||||||||||||||
| IR@mdc-partners.com | |||||||||||||||||||||||
MDC PARTNERS INC. REPORTS RESULTS FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2020
TWELVE MONTHS ENDED DECEMBER 31, 2020
Company Delivers 15.8% Sequential Revenue Growth in Fourth Quarter,
Guides 7-9% Revenue Growth in 2021
FOURTH QUARTER & 2020 HIGHLIGHTS:
•Revenue of $328.2 million in the fourth quarter versus $382.0 million in the prior year period, a decline of 14.1%; and $1.20 billion in 2020 versus $1.42 billion in the prior year, a decline of 15.3%.
•Sequential revenue growth of 15.8% from the third quarter of 2020.
•Organic revenue declined 13.7% in the fourth quarter and 13.9% in 2020.
•Net loss attributable to MDC Partners Inc. common shareholders was $243.2 million (inclusive of principally non-cash impairment and other charges of $96.4 million and a $130 million non-cash income tax valuation allowance) in 2020 versus a net loss of $17.6 million in the prior year.
•Adjusted EBITDA of $177.3 million in 2020 versus $174.2 million in the prior year, an increase of 1.8%. Adjusted EBITDA Margin of 14.8% in 2020, increasing 250 basis points from 12.3% in the prior year.
•Excluding the sales of Kingsdale and Sloane, Adjusted EBITDA increased 5.2% in 2020 compared with the prior year.
•Covenant EBITDA of $190.1 million in 2020 versus $180.5 million in 2019, an improvement of 5.3%.
•Net New Business wins totaled $29.5 million in the fourth quarter and $90.3 million in 2020.
New York, NY, March 2, 2021 (NASDAQ: MDCA) – MDC Partners Inc. (“MDC Partners” or the “Company”) today announced financial results for the three and twelve months ended December 31, 2020.
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“MDC delivered 15.8% sequential revenue growth from the third quarter of 2020, $190 million of Covenant EBITDA in 2020, up 5.3% from prior year and $90 million of net new business in 2020,” said Mark Penn, Chairman and Chief Executive Officer of MDC Partners. “The business continued to see a rebound from pandemic lows, with strong sequential improvement in revenue driven by double-digit growth in most client sectors led by Consumer Products, Technology and Healthcare. While COVID-19 headwinds remain, we expect the rebound to continue into 2021, with 7 to 9% organic revenue growth for the year.”
"Building upon MDC's transformation over the last two years, we recently announced a strategic business combination with The Stagwell Group, which unites the award-winning creative talent of MDC's network with the advanced technology platform of Stagwell, unleashing the power of Talent & Technology around the world.”
Frank Lanuto, Chief Financial Officer, added, “Despite lower revenue in 2020, we expanded Adjusted EBITDA margins by 250 basis points. We continued to lower our leverage, down to 4.4x, and delivered $35 million in cash flow from operations in the quarter, ending the year with $61 million in cash and no revolver borrowings.”
Fourth Quarter and Year-to-Date 2020 Financial Results
Revenue for the fourth quarter of 2020 was $328.2 million versus $382.0 million for the fourth quarter of 2019, a decline of 14.1%. The effect on revenue of foreign exchange was positive 0.7%, the impact of non-GAAP acquisitions (dispositions), net was negative 1.2%, and organic revenue decline was 13.7%. Organic revenue declined primarily due to reduced spending by clients in connection with COVID-19. Net revenue (revenue less billable costs), was $271.4 million for the fourth quarter of 2020 versus $314.0 million for the fourth quarter of 2019, a decline of 13.6%. The effect on net revenue of foreign exchange was positive 0.8%, the impact of non-GAAP acquisitions (dispositions), net was negative 1.2%, and organic net revenue decline was 13.0%.
Revenue in the fourth quarter of 2020 increased 15.8% sequentially from the third quarter of 2020 as client spending activity increased following the initial decline in the third quarter.
Net New Business wins in the fourth quarter of 2020 totaled $29.5 million.
Net loss attributable to MDC Partners Inc. common shareholders for the fourth quarter of 2020 was $237.1 million versus a net loss of $11.1 million for the fourth quarter of 2019. The increase was primarily due to the recognition of impairment charges and an income tax valuation allowance, as well as the decline in revenue. Diluted loss per share attributable to MDC Partners Inc. common shareholders for the fourth quarter of 2020 was $3.23 versus diluted loss per share of $0.15 for the fourth quarter of 2019.
Adjusted EBITDA for the fourth quarter of 2020 was $47.5 million versus $57.0 million for the fourth quarter of 2019, a decrease of 16.6%, primarily due to COVID-19 driven reductions in revenue. In addition, Adjusted EBITDA margin in the fourth quarter of 2020 was 14.5%, down from 14.9% in the fourth quarter of 2019.
Revenue in 2020 was $1.20 billion versus $1.42 billion in 2019, a decline of 15.3%. The effect on revenue of foreign exchange due to the rising US Dollar was negative 0.1%, the impact of non-GAAP acquisitions (dispositions), net was negative 1.3%, and organic revenue decline was 13.9%. Organic revenue declined primarily due to reduced spending by clients in connection with COVID-19. Net revenue (revenue less billable costs), was $1.02 billion in 2020 versus $1.19 billion in 2019, a decline of 13.9%. The effect on net revenue of foreign exchange was negative 0.2%, the impact of non-GAAP acquisitions (dispositions), net was negative 1.4%, and organic net revenue decline was 12.3%.
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Net New Business wins in 2020 totaled $90.3 million.
Net loss attributable to MDC Partners Inc. common shareholders in 2020 was $243.2 million, an increase versus a net loss of $17.6 million in 2019. The increase was primarily due to the recognition of impairment charges and an income tax valuation allowance, as well as the decline in revenue. Diluted loss per share attributable to MDC Partners Inc. common shareholders in 2020 was $3.34 versus a diluted loss per share of $0.25 in 2019.
Adjusted EBITDA in 2020 was $177.3 million versus $174.2 million in 2019, an increase of 1.8%. The improvement was primarily due to a reduction in expenses to combat the impact of COVID-19 on the business, partially offset by lower revenues. This led to a 250 basis point improvement in Adjusted EBITDA Margin in 2020 to 14.8% from 12.3% in 2019.
Covenant EBITDA for 2020 was $190.1 million versus $180.5 million in 2019, an increase of 5.3%. The change was primarily driven by the increase in Adjusted EBITDA.
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Financial Outlook
2021 financial guidance is updated as follows:
| 2021 Outlook Commentary * | |||||||||||
| Organic Revenue Growth | We expect approximately 7 to 9% growth in organic revenue. | ||||||||||
| Foreign Exchange Impact, net | No estimated impact at this time. | ||||||||||
| Impact of Non-GAAP Acquisitions (Dispositions), net | Our current expectations are that the impact of acquisitions, net of disposition activity, will have no material impact on revenue. | ||||||||||
| Adjusted EBITDA | The Company expects to complete fiscal year 2021 with approximately $190 million to $200 million of Adjusted EBITDA, approximately 7 to 13% above prior year. | ||||||||||
| * The Company has excluded a quantitative reconciliation with respect to the Company’s 2020 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K See "Non-GAAP Financial Measures" below for additional information. | |||||||||||
Conference Call
Management will host a conference call on Tuesday, March 2, 2021, at 8:30 a.m. (ET) to discuss its results. The conference call will be accessible by dialing 1-412-902-4266 or toll free 1-888-346-6216. An investor presentation has been posted on our website at www.mdc-partners.com and may be referred to during the conference call.
A recording of the conference call will be accessible within one hour after the end of the conference call until 12:00
a.m. (ET), March 7, 2021, by dialing 1-412-317-0088 or toll free 1-877-344-7529 (passcode 10151483), or by
visiting our website at www.mdc-partners.com
About MDC Partners Inc.
MDC Partners is one of the most influential marketing and communications networks in the world. As "The Place Where Great Talent Lives," MDC Partners is celebrated for its innovative advertising, public relations, branding, digital, social and event marketing agency partners, which are responsible for some of the most memorable and effective campaigns for the world's most respected brands. By leveraging technology, data analytics, insights and strategic consulting solutions, MDC Partners drives creative excellence, business growth and measurable return on marketing investment for over 1,700 clients worldwide. For more information about MDC Partners and its partner firms, visit our website at www.mdc-partners.com and follow us on Twitter at http://www.twitter.com/mdcpartners.
Non-GAAP Financial Measures
In addition to its reported results, MDC Partners has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP financial measures." Management
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believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:
(1) Organic Revenue: “Organic revenue growth” and “organic revenue decline” refer to the positive or negative results, respectively, of subtracting both the foreign exchange and acquisition (disposition) components from total revenue growth. The acquisition (disposition) component is calculated by aggregating prior period revenue for any acquired businesses, less the prior period revenue of any businesses that were disposed of during the current period. The organic revenue growth (decline) component reflects the constant currency impact of (a) the change in revenue of the partner firms that the Company has held throughout each of the comparable periods presented, and (b) “non-GAAP acquisitions (dispositions), net”. Non-GAAP acquisitions (dispositions), net consists of (i) for acquisitions during the current year, the revenue effect from such acquisition as if the acquisition had been owned during the equivalent period in the prior year and (ii) for acquisitions during the previous year, the revenue effect from such acquisitions as if they had been owned during that entire year (or same period as the current reportable period), taking into account their respective pre-acquisition revenues for the applicable periods, and (iii) for dispositions, the revenue effect from such disposition as if they had been disposed of during the equivalent period in the prior year.
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
(3) Adjusted EBITDA: Adjusted EBITDA is a non-GAAP financial measure that represents Net income (loss) attributable to MDC Partners Inc. common shareholders plus or minus adjustments to operating income (loss) plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, and other items, net which includes items such as severance expense and other restructuring expenses, including costs for leases that will either be terminated or sublet in connection with the centralization of our New York real estate portfolio.
(4) Covenant EBITDA: Covenant EBITDA is a measure that includes pro forma adjustments for acquisitions, onetime charges, permitted dispositions and other items, as defined in the Company's Credit Agreement. We believe that the presentation of Covenant EBITDA is useful to investors as it eliminates the effect of certain non-cash and other items not necessarily indicative of a company’s underlying operating performance. In addition, the presentation of Covenant EBITDA provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Company's Credit Agreement.
Included in this earnings release are tables reconciling MDC Partners’ reported results to arrive at certain of these
non-GAAP financial measures.
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This press release contains forward-looking statements. Statements in this press release that are not historical facts, including without limitation the information under the heading "Financial Outlook" and statements about the Company’s beliefs and expectations, earnings (loss) guidance, recent business and economic trends, potential acquisitions, and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Words such as “estimates”, “expects”, “contemplates”, “will”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “forecasts”, “may”, “should”, and variations of such words or similar expressions are intended to identify 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. 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;
•an inability to realize expected benefits of the proposed redomiciliation of the Company from the federal jurisdiction of Canada to the State of Delaware (the “Redomiciliation”) and the subsequent combination of the Company’s business with the business of the subsidiaries of Stagwell Media LP (“Stagwell”) that own and operate a portfolio of marketing services companies (the “Business Combination” and, together with the Redomiciliation, the “Proposed Transactions”) or the occurrence of difficulties in connection with the Proposed Transaction;
•adverse tax consequences in connection with the Proposed Transactions for the Company, its operations and its shareholders, that may differ from the expectations of the Company, including that future changes in tax law, potential increases to corporate tax rates in the United States and disagreements with the tax authorities on the Company’s determination of value and computations of its tax attributes may result in increased tax costs;
•the occurrence of material Canadian federal income tax (including material “emigration tax”) as a result of the Proposed Transactions;
•the impact of uncertainty associated with the Proposed Transactions on the Company’s businesses;
•direct or indirect costs associated with the Proposed Transactions, which could be greater than expected;
•the risk that a condition to completion of the Proposed Transactions may not be satisfied and the Proposed Transactions may not be completed;
•the risk of parties challenging the Proposed Transactions or the impact of the Proposed Transactions on the Company’s debt arrangements;
•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;
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•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 and the additional risk factors outlined in more detail in the Company's Annual Report on Form 10-K and in the Company’s other SEC filings.
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SCHEDULE 1
MDC PARTNERS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ in 000s, Except per Share Amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Services | $ | 328,168 | $ | 381,975 | $ | 1,199,011 | $ | 1,415,803 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Cost of services sold | 209,043 | 260,725 | 769,899 | 961,076 | |||||||||||||||||||
| Office and general expenses | 136,490 | 94,219 | 341,565 | 328,339 | |||||||||||||||||||
| Depreciation and amortization | 9,468 | 9,460 | 36,905 | 38,329 | |||||||||||||||||||
| Impairment and other losses | 77,240 | 6,655 | 96,399 | 8,599 | |||||||||||||||||||
| 432,241 | 371,059 | 1,244,768 | 1,336,343 | ||||||||||||||||||||
| Operating income (loss) | (104,073) | 10,916 | (45,757) | 79,460 | |||||||||||||||||||
| Other Income (Expenses): | |||||||||||||||||||||||
| Interest expense and finance charges, net | (15,344) | (15,658) | (62,163) | (64,942) | |||||||||||||||||||
| Foreign exchange gain (loss) | 6,274 | 4,349 | (982) | 8,750 | |||||||||||||||||||
| Other, net | (2,223) | 2,158 | 20,500 | (2,401) | |||||||||||||||||||
| (11,293) | (9,151) | (42,645) | (58,593) | ||||||||||||||||||||
| Income (loss) before income taxes and equity in earnings of non-consolidated affiliates | (115,366) | 1,765 | (88,402) | 20,867 | |||||||||||||||||||
| Income tax expense | 109,526 | 4,024 | 116,555 | 10,316 | |||||||||||||||||||
| Income (loss) before equity in earnings of non-consolidated affiliates | (224,892) | (2,259) | (204,957) | 10,551 | |||||||||||||||||||
| Equity in earnings (losses) of non-consolidated affiliates | (1,411) | — | (2,240) | 352 | |||||||||||||||||||
| Net income (loss) | (226,303) | (2,259) | (207,197) | 10,903 | |||||||||||||||||||
| Net income attributable to the noncontrolling interest | (7,154) | (5,419) | (21,774) | (16,156) | |||||||||||||||||||
| Net loss attributable to MDC Partners Inc. | (233,457) | (7,678) | (228,971) | (5,253) | |||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | (3,651) | (3,373) | (14,179) | (12,304) | |||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (237,108) | $ | (11,051) | $ | (243,150) | $ | (17,557) | |||||||||||||||
| Loss Per Common Share: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (3.23) | $ | (0.15) | $ | (3.34) | $ | (0.25) | |||||||||||||||
| Diluted | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (3.23) | $ | (0.15) | $ | (3.34) | $ | (0.25) | |||||||||||||||
| Weighted Average Number of Common Shares Outstanding: | |||||||||||||||||||||||
| Basic | 73,312,906 | 72,149,204 | 72,862,178 | 69,132,100 | |||||||||||||||||||
| Diluted | 73,312,906 | 72,149,204 | 72,862,178 | 69,132,100 | |||||||||||||||||||
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SCHEDULE 2
MDC PARTNERS INC.
UNAUDITED REVENUE RECONCILIATION
(US$ in 000s, except percentages)
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| Revenue $ | % Change | Revenue $ | % Change | ||||||||||||||||||||
| December 31, 2019 | $ | 381,975 | $ | 1,415,803 | |||||||||||||||||||
Organic revenue (1) | (52,180) | (13.7) | % | (197,466) | (13.9) | % | |||||||||||||||||
| Non-GAAP acquisitions (dispositions), net | (4,447) | (1.2) | % | (18,312) | (1.3) | % | |||||||||||||||||
| Foreign exchange impact | 2,820 | 0.7 | % | (1,014) | (0.1) | % | |||||||||||||||||
| Total change | (53,807) | (14.1) | % | (216,792) | (15.3) | % | |||||||||||||||||
| December 31, 2020 | $ | 328,168 | $ | 1,199,011 | |||||||||||||||||||
(1) Organic revenue refers to the positive results of subtracting both the foreign exchange and acquisition (disposition) components from total revenue growth. The acquisition (disposition) component is calculated by aggregating prior period revenue for any acquired businesses, less the prior period revenue of any businesses that were disposed of during the current period. The organic revenue component reflects the constant currency impact of (a) the change in revenue of the partner firms which the Company has held throughout each of the comparable periods presented, and (b) “non-GAAP acquisitions (dispositions), net”. Non-GAAP acquisitions (dispositions), net consists of (i) for acquisitions during the current year, the revenue effect from such acquisition as if the acquisition had been owned during the equivalent period in the prior year and (ii) for acquisitions during the previous year, the revenue effect from such acquisitions as if they had been owned during that entire year (or same period as the current reportable period), taking into account their respective pre-acquisition revenues for the applicable periods, and (iii) for dispositions, the revenue effect from such disposition as if they had been disposed of during the equivalent period in the prior year. See "Non-GAAP Financial Measures" herein.
Note: Actuals may not foot due to rounding.
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SCHEDULE 3
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Three Months Ended December 31, 2020
| Integrated Networks - Group A | Integrated Networks - Group B | Media & Data Network | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 119,228 | $ | 112,325 | $ | 35,834 | $ | 60,781 | $ | — | $ | 328,168 | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (237,108) | |||||||||||||||||||||||||||||||||
| Adjustments to reconcile to operating loss: | |||||||||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 3,651 | ||||||||||||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 7,154 | ||||||||||||||||||||||||||||||||||
| Equity in losses of non-consolidated affiliates | 1,411 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 109,526 | ||||||||||||||||||||||||||||||||||
| Interest expense and finance charges, net | 15,344 | ||||||||||||||||||||||||||||||||||
| Foreign exchange gain | (6,274) | ||||||||||||||||||||||||||||||||||
| Other, net | 2,223 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | (25,040) | $ | 1,501 | $ | (10,501) | $ | (41,066) | $ | (28,967) | $ | (104,073) | |||||||||||||||||||||||
| margin | (21.0) | % | 1.3 | % | (29.3) | % | (67.6) | % | (31.7) | % | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,559 | 3,478 | 1,975 | 1,743 | 713 | 9,468 | |||||||||||||||||||||||||||||
| Impairment and other losses | 6,391 | 13,998 | 11,725 | 45,126 | — | 77,240 | |||||||||||||||||||||||||||||
| Stock-based compensation | 1,700 | 803 | — | (35) | 1,143 | 3,611 | |||||||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | 39,682 | 1,153 | — | 837 | — | 41,672 | |||||||||||||||||||||||||||||
Distributions from non- consolidated affiliates (1) | — | — | — | — | 902 | 902 | |||||||||||||||||||||||||||||
Other items, net (2) | 985 | 243 | 798 | 214 | 16,485 | 18,725 | |||||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 25,277 | $ | 21,176 | $ | 3,997 | $ | 6,819 | $ | (9,724) | $ | 47,545 | |||||||||||||||||||||||
| Adjusted EBITDA margin | 21.2 | % | 18.9 | % | 11.2 | % | 11.2 | % | 14.5 | % | |||||||||||||||||||||||||
(1) Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 11 for a reconciliation of amounts.
(3) Adjusted EBITDA is a non-GAAP financial measure, and as shown above it represents operating income (loss) plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, impairment and other items. See "Non-GAAP Financial Measures" herein.
Note: Effective in the first quarter of 2020, the Company reorganized its management structure resulting in the aggregation of certain Partner Firms into integrated groups (“Networks”). In connection with our discussions with the SEC, the Company has changed the prior presentation for the Networks. Beginning in the second quarter of 2020, the Company separated the Networks into two reportable segments: Integrated Networks - Group A and Integrated Networks - Group B. Prior periods presented have been recast to reflect the change in reportable segments.
Note: Actuals may not foot due to rounding.
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SCHEDULE 4
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Twelve Months Ended December 31, 2020
| Integrated Networks - Group A | Integrated Networks - Group B | Media & Data Network | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 379,648 | $ | 435,589 | $ | 139,015 | $ | 244,759 | $ | — | $ | 1,199,011 | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (243,150) | |||||||||||||||||||||||||||||||||
| Adjustments to reconcile to operating income (loss): | |||||||||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 14,179 | ||||||||||||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 21,774 | ||||||||||||||||||||||||||||||||||
| Equity in losses of non-consolidated affiliates | 2,240 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 116,555 | ||||||||||||||||||||||||||||||||||
| Interest expense and finance charges, net | 62,163 | ||||||||||||||||||||||||||||||||||
| Foreign exchange loss | 982 | ||||||||||||||||||||||||||||||||||
| Other, net | (20,500) | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 14,297 | $ | 34,581 | $ | (7,724) | $ | (23,021) | $ | (63,890) | $ | (45,757) | |||||||||||||||||||||||
| margin | 3.8 | % | 7.9 | % | (5.6) | % | (9.4) | % | (3.8) | % | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 6,467 | 17,204 | 4,376 | 7,478 | 1,380 | 36,905 | |||||||||||||||||||||||||||||
| Impairment and other losses | 6,391 | 31,784 | 11,760 | 45,335 | 1,129 | 96,399 | |||||||||||||||||||||||||||||
| Stock-based compensation | 7,580 | 3,191 | 122 | 304 | 2,982 | 14,179 | |||||||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | 44,073 | (2,706) | 375 | 445 | — | 42,187 | |||||||||||||||||||||||||||||
Distributions from non- consolidated affiliates (1) | — | — | — | — | 2,175 | 2,175 | |||||||||||||||||||||||||||||
Other items, net (2) | 985 | 243 | 798 | 214 | 29,004 | 31,244 | |||||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 79,793 | $ | 84,297 | $ | 9,707 | $ | 30,755 | $ | (27,220) | $ | 177,332 | |||||||||||||||||||||||
| Adjusted EBITDA margin | 21.0 | % | 19.4 | % | 7.0 | % | 12.6 | % | 14.8 | % | |||||||||||||||||||||||||
(1) Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 11 for a reconciliation of amounts.
(3) Adjusted EBITDA is a non-GAAP financial measure, and as shown above it represents operating income (loss) plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, impairment and other items. See "Non-GAAP Financial Measures" herein.
Note: Actuals may not foot due to rounding.
Page 11
SCHEDULE 5
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Three Months Ended December 31, 2019
| Integrated Networks - Group A | Integrated Networks - Group B | Media & Data Network | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 115,814 | $ | 136,095 | $ | 42,527 | $ | 87,539 | $ | — | $ | 381,975 | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (11,051) | |||||||||||||||||||||||||||||||||
| Adjustments to reconcile to operating loss: | |||||||||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 3,373 | ||||||||||||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 5,419 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 4,024 | ||||||||||||||||||||||||||||||||||
| Interest expense and finance charges, net | 15,658 | ||||||||||||||||||||||||||||||||||
| Foreign exchange gain | (4,349) | ||||||||||||||||||||||||||||||||||
| Other, net | (2,158) | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 6,677 | $ | 9,226 | $ | 3,416 | $ | 6,800 | $ | (15,203) | $ | 10,916 | |||||||||||||||||||||||
| margin | 5.8 | % | 6.8 | % | 8.0 | % | 7.8 | % | 2.9 | % | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,139 | 3,940 | 971 | 2,172 | 238 | 9,460 | |||||||||||||||||||||||||||||
| Impairment and other losses | 4,879 | — | 929 | — | 847 | 6,655 | |||||||||||||||||||||||||||||
| Stock-based compensation | 15,856 | 1,072 | 42 | 10 | 1,428 | 18,408 | |||||||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | 2,140 | 5,213 | — | 1,677 | — | 9,030 | |||||||||||||||||||||||||||||
Distributions from non- consolidated affiliates (1) | — | — | — | — | 2,219 | 2,219 | |||||||||||||||||||||||||||||
Other items, net (2) | — | — | — | — | 349 | 349 | |||||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 31,691 | $ | 19,451 | $ | 5,358 | $ | 10,659 | $ | (10,122) | $ | 57,037 | |||||||||||||||||||||||
| Adjusted EBITDA margin | 27.4 | % | 14.3 | % | 12.6 | % | 12.2 | % | 14.9 | % | |||||||||||||||||||||||||
(1) Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 11 for a reconciliation of amounts.
(3) Adjusted EBITDA is a non-GAAP financial measure, and as shown above it represents operating income (loss) plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, impairment and other items. See "Non-GAAP Financial Measures" herein.
Note: Actuals may not foot due to rounding.
Page 12
SCHEDULE 6
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(US$ in 000s, except percentages)
For the Twelve Months Ended December 31, 2019
| Integrated Networks - Group A | Integrated Networks - Group B | Media & Data Network | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 392,101 | $ | 531,717 | $ | 161,451 | $ | 330,534 | $ | — | $ | 1,415,803 | |||||||||||||||||||||||
| Net loss attributable to MDC Partners Inc. common shareholders | $ | (17,557) | |||||||||||||||||||||||||||||||||
| Adjustments to reconcile to operating income (loss): | |||||||||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 12,304 | ||||||||||||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 16,156 | ||||||||||||||||||||||||||||||||||
| Equity in earnings of non-consolidated affiliates | (352) | ||||||||||||||||||||||||||||||||||
| Income tax expense | 10,316 | ||||||||||||||||||||||||||||||||||
| Interest expense and finance charges, net | 64,942 | ||||||||||||||||||||||||||||||||||
| Foreign exchange gain | (8,750) | ||||||||||||||||||||||||||||||||||
| Other, net | 2,401 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 35,230 | $ | 61,417 | $ | 2,376 | $ | 26,205 | $ | (45,768) | $ | 79,460 | |||||||||||||||||||||||
| margin | 9.0 | % | 11.6 | % | 1.5 | % | 7.9 | % | 5.6 | % | |||||||||||||||||||||||||
| Additional adjustments to reconcile to Adjusted EBITDA: | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 8,559 | 15,904 | 4,303 | 8,695 | 868 | 38,329 | |||||||||||||||||||||||||||||
| Impairment and other losses | 4,879 | 1,933 | 929 | 11 | 847 | 8,599 | |||||||||||||||||||||||||||||
| Stock-based compensation | 24,420 | 4,303 | 63 | 374 | 1,880 | 31,040 | |||||||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | 1,734 | 1,261 | 75 | 2,333 | — | 5,403 | |||||||||||||||||||||||||||||
Distributions from non- consolidated affiliates (1) | — | (250) | — | — | 2,298 | 2,048 | |||||||||||||||||||||||||||||
Other items, net (2) | — | — | — | — | 9,274 | 9,274 | |||||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 74,822 | $ | 84,568 | $ | 7,746 | $ | 37,618 | $ | (30,601) | $ | 174,153 | |||||||||||||||||||||||
| Adjusted EBITDA margin | 19.1 | % | 15.9 | % | 4.8 | % | 11.4 | % | 12.3 | % | |||||||||||||||||||||||||
(1) Distributions from non-consolidated affiliates includes (i) cash received for profit distributions from non-consolidated affiliates, and (ii) consideration from the sale of ownership interests in non-consolidated affiliates less contributions to date plus undistributed earnings (losses).
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 11 for a reconciliation of amounts.
(3) Adjusted EBITDA is a non-GAAP financial measure, and as shown above it represents operating income (loss) plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, distributions from non-consolidated affiliates, impairment and other items. See "Non-GAAP Financial Measures" herein.
Note: Actuals may not foot due to rounding.
Page 13
SCHEDULE 7
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO COVENANT EBITDA
(US$ in 000s)
| 2020 | Covenant EBITDA (LTM) (1) | ||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q4-2020 - LTM | |||||||||||||||||||||||||
| Net income (loss) attributable to MDC Partners Inc. common shareholders | $ | (2,437) | $ | (4,102) | $ | 360 | $ | (237,108) | $ | (243,287) | |||||||||||||||||||
| Adjustments to reconcile to operating income (loss): | |||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 3,440 | 3,509 | 3,716 | 3,651 | 14,316 | ||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 791 | 3,101 | 10,728 | 7,154 | 21,774 | ||||||||||||||||||||||||
| Equity in losses of non-consolidated affiliates | — | 798 | 31 | 1,411 | 2,240 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 13,500 | (7,923) | 1,452 | 109,526 | 116,555 | ||||||||||||||||||||||||
| Interest expense and finance charges, net | 15,612 | 15,941 | 15,266 | 15,344 | 62,163 | ||||||||||||||||||||||||
| Foreign exchange loss (gain) | 14,757 | (5,342) | (2,159) | (6,274) | 982 | ||||||||||||||||||||||||
| Other, net | (16,334) | (5,884) | (505) | 2,223 | (20,500) | ||||||||||||||||||||||||
| Operating income (loss) | 29,329 | 98 | 28,889 | (104,073) | (45,757) | ||||||||||||||||||||||||
| Adjustments to reconcile to Adjusted EBITDA: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 9,206 | 8,899 | 9,332 | 9,468 | 36,905 | ||||||||||||||||||||||||
| Impairment and other losses | 161 | 18,839 | 159 | 77,240 | 96,399 | ||||||||||||||||||||||||
| Stock-based compensation | 3,070 | 1,039 | 6,459 | 3,611 | 14,179 | ||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | (4,600) | 2,312 | 2,803 | 41,672 | 42,187 | ||||||||||||||||||||||||
| Distributions from non-consolidated affiliates | (14) | 1,079 | 208 | 902 | 2,175 | ||||||||||||||||||||||||
Other items, net (2) | 2,416 | 3,895 | 6,208 | 18,725 | 31,244 | ||||||||||||||||||||||||
| Adjusted EBITDA | 39,568 | 36,161 | 54,058 | 47,545 | 177,332 | ||||||||||||||||||||||||
| Adjustments to reconcile to Covenant EBITDA: | |||||||||||||||||||||||||||||
Proforma dispositions (3) | (124) | — | — | — | (124) | ||||||||||||||||||||||||
| Severance due to eliminated positions | 2,133 | 5,233 | 2,336 | 1,987 | 11,689 | ||||||||||||||||||||||||
Other adjustments, net (4) | 357 | 207 | 77 | 585 | 1,226 | ||||||||||||||||||||||||
| Covenant adjusted EBITDA | $ | 41,934 | $ | 41,601 | $ | 56,471 | $ | 50,117 | $ | 190,123 | |||||||||||||||||||
(1) Covenant EBITDA is a measure that includes pro forma adjustments for acquisitions, one-time charges, permitted dispositions and other adjustments, as defined in the Company's Credit Agreement. Covenant EBITDA is calculated as the aggregate of operating results for the rolling last twelve months (LTM). Each quarter is presented to provide the information utilized to calculate Covenant EBITDA. Historical Covenant EBITDA may be re-casted in the current period for any proforma adjustments related to acquisitions and/or dispositions in the current period. See "Non-GAAP Financial Measures" herein.
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 11 for a reconciliation of amounts.
(3) Represents Kingsdale and Sloane EBITDA for the respective period.
(4) Other adjustments, net primarily includes one-time professional fees and costs associated with real estate consolidation.
Note: Actuals may not foot due to rounding.
Page 14
SCHEDULE 8
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO COVENANT EBITDA
(US$ in 000s)
| 2019 | Covenant EBITDA (LTM) (1) | ||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q4-2019 LTM | |||||||||||||||||||||||||
| Net income (loss) attributable to MDC Partners Inc. common shareholders | $ | (2,496) | $ | 1,048 | $ | (5,058) | $ | (11,051) | $ | (17,557) | |||||||||||||||||||
| Adjustments to reconcile to operating income: | |||||||||||||||||||||||||||||
| Accretion on and net income allocated to convertible preference shares | 2,383 | 3,242 | 3,306 | 3,373 | 12,304 | ||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | 429 | 3,043 | 7,265 | 5,419 | 16,156 | ||||||||||||||||||||||||
| Equity in (earnings) of non-consolidated affiliates | (83) | (206) | (63) | — | (352) | ||||||||||||||||||||||||
| Income tax expense | 746 | 2,089 | 3,457 | 4,024 | 10,316 | ||||||||||||||||||||||||
| Interest expense and finance charges, net | 16,761 | 16,413 | 16,110 | 15,658 | 64,942 | ||||||||||||||||||||||||
| Foreign exchange loss (gain) | (5,442) | (2,932) | 3,973 | (4,349) | (8,750) | ||||||||||||||||||||||||
| Other, net | 3,383 | 745 | 431 | (2,158) | 2,401 | ||||||||||||||||||||||||
| Operating income | 15,681 | 23,442 | 29,421 | 10,916 | 79,460 | ||||||||||||||||||||||||
| Adjustments to reconcile to Adjusted EBITDA: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 8,838 | 10,663 | 9,368 | 9,460 | 38,329 | ||||||||||||||||||||||||
| Impairment and other losses | — | — | 1,944 | 6,655 | 8,599 | ||||||||||||||||||||||||
| Stock-based compensation | 2,972 | 3,634 | 6,026 | 18,408 | 31,040 | ||||||||||||||||||||||||
| Deferred acquisition consideration adjustments | (7,643) | 2,073 | 1,943 | 9,030 | 5,403 | ||||||||||||||||||||||||
| Distributions from non-consolidated affiliates | — | 31 | (202) | 2,219 | 2,048 | ||||||||||||||||||||||||
Other items, net (2) | 1,626 | 6,594 | 705 | 349 | 9,274 | ||||||||||||||||||||||||
| Adjusted EBITDA | 21,474 | 46,437 | 49,205 | 57,037 | 174,153 | ||||||||||||||||||||||||
| Adjustments to reconcile to Covenant EBITDA: | |||||||||||||||||||||||||||||
Proforma acquisitions/dispositions (3) | (2,701) | (729) | (996) | (1,294) | (5,720) | ||||||||||||||||||||||||
| Severance due to eliminated positions | 1,534 | 2,346 | 1,956 | 3,221 | 9,057 | ||||||||||||||||||||||||
Other adjustments, net (4) | 1,412 | 989 | 228 | 368 | 2,997 | ||||||||||||||||||||||||
| $ | 21,719 | $ | 49,043 | $ | 50,393 | $ | 59,332 | $ | 180,487 | ||||||||||||||||||||
(1) Covenant EBITDA is a measure that includes pro forma adjustments for acquisitions, one-time charges, permitted dispositions and other adjustments, as defined in the Company's Credit Agreement. Covenant EBITDA is calculated as the aggregate of operating results for the rolling last twelve months (LTM). Each quarter is presented to provide the information utilized to calculate Covenant EBITDA. Historical Covenant EBITDA may be re-casted in the current period for any proforma adjustments related to acquisitions and/or dispositions in the current period. See "Non-GAAP Financial Measures" herein.
(2) Other items, net includes items such as severance expense and other restructuring expenses. See Schedule 10 for a reconciliation of amounts.
(3) Represents Kingsdale EBITDA for the respective period.
(4) Other adjustments, net primarily includes one-time professional fees and costs associated with real estate consolidation.
Note: Actuals may not foot due to rounding.
Page 15
SCHEDULE 9
MDC PARTNERS INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US$ in 000s)
| December 31, 2020 | December 31, 2019 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 60,757 | $ | 106,933 | |||||||
| Accounts receivable, less allowance for doubtful accounts of $5,473 and $3,304 | 374,892 | 449,288 | |||||||||
| Expenditures billable to clients | 10,552 | 30,133 | |||||||||
| Other current assets | 40,939 | 35,613 | |||||||||
| Total Current Assets | 487,140 | 621,967 | |||||||||
| Fixed assets, at cost, less accumulated depreciation of $136,166 and $129,579 | 90,413 | 81,054 | |||||||||
| Right-of-use assets - operating leases | 214,188 | 223,622 | |||||||||
| Goodwill | 668,211 | 731,691 | |||||||||
| Other intangible assets, net | 33,844 | 54,893 | |||||||||
| Deferred tax assets | 179 | 84,900 | |||||||||
| Other assets | 17,339 | 30,179 | |||||||||
| Total Assets | $ | 1,511,314 | $ | 1,828,306 | |||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ DEFICIT | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 168,398 | $ | 200,148 | |||||||
| Accruals and other liabilities | 274,968 | 353,575 | |||||||||
| Advance billings | 152,956 | 171,742 | |||||||||
| Current portion of lease liabilities - operating leases | 41,208 | 48,659 | |||||||||
| Current portion of deferred acquisition consideration | 53,730 | 45,521 | |||||||||
| Total Current Liabilities | 691,260 | 819,645 | |||||||||
| Long-term debt | 843,184 | 887,630 | |||||||||
| Long-term portion of deferred acquisition consideration | 29,335 | 29,699 | |||||||||
| Long-term lease liabilities - operating leases | 247,243 | 219,163 | |||||||||
| Other liabilities | 82,065 | 25,771 | |||||||||
| Total Liabilities | 1,893,087 | 1,981,908 | |||||||||
| Redeemable Noncontrolling Interests | 27,137 | 36,973 | |||||||||
| Commitments, Contingencies, and Guarantees | |||||||||||
| Shareholders’ Deficit: | |||||||||||
| Convertible preference shares, 145,000 authorized, issued and outstanding at December 31, 2020 and 2019 | 152,746 | 152,746 | |||||||||
| Common stock and other paid-in capital | 104,367 | 101,469 | |||||||||
| Accumulated deficit | (709,751) | (480,779) | |||||||||
| Accumulated other comprehensive income (loss) | 2,739 | (4,269) | |||||||||
| MDC Partners Inc. Shareholders' Deficit | (449,899) | (230,833) | |||||||||
| Noncontrolling interests | 40,989 | 40,258 | |||||||||
| Total Shareholders' Deficit | (408,910) | (190,575) | |||||||||
| Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Deficit | $ | 1,511,314 | $ | 1,828,306 | |||||||
Page 16
SCHEDULE 10
MDC PARTNERS INC.
UNAUDITED SUMMARY CASH FLOW DATA
(US$ in 000s)
| Twelve Months Ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Net cash provided by operating activities | $ | 32,559 | $ | 86,539 | |||||||
| Net cash provided by (used in) investing activities | (8,287) | 115 | |||||||||
| Net cash used in financing activities | (73,426) | (11,729) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and cash held in trusts | 2,978 | 1 | |||||||||
| Net increase (decrease) in cash, and cash equivalents | $ | (46,176) | $ | 74,926 | |||||||
| 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 increase (decrease) in cash and cash equivalents | (46,176) | 76,060 | |||||||||
| Cash and cash equivalents at beginning of period | 106,933 | 30,873 | |||||||||
| Cash and cash equivalents at end of period | $ | 60,757 | $ | 106,933 | |||||||
| Supplemental disclosures: | |||||||||||
| Cash income taxes paid | $ | 7,946 | $ | 2,296 | |||||||
| Cash interest paid | $ | 57,752 | $ | 62,223 | |||||||
Note: Actuals may not foot due to rounding
Page 17
SCHEDULE 11
MDC PARTNERS INC.
UNAUDITED RECONCILIATION OF COMPONENTS OF NON- GAAP MEASURES
(US$ in 000s)
| 2019 | 2020 | ||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||||
| NON-GAAP ACQUISITIONS (DISPOSITIONS), NET | |||||||||||||||||||||||||||||||||||
| GAAP revenue from current year acquisitions | $ | — | $ | 698 | $ | 1,347 | $ | 1,396 | $ | 3,441 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
GAAP revenue from prior year acquisitions (1) | 15,685 | 1,519 | 1,109 | 291 | 18,604 | — | — | — | — | — | |||||||||||||||||||||||||
| Foreign exchange impact | — | — | 470 | (248) | 222 | (248) | — | — | — | (248) | |||||||||||||||||||||||||
Contribution to organic revenue (growth) decline (2) | (4,008) | (440) | (2,185) | (1,694) | (8,327) | (411) | — | — | — | (411) | |||||||||||||||||||||||||
Prior year revenue from dispositions (3) | (1,825) | (5,995) | (3,178) | (4,505) | (15,503) | (5,024) | (4,106) | (4,076) | (4,447) | (17,653) | |||||||||||||||||||||||||
| Non-GAAP acquisitions (dispositions), net | $ | 9,852 | $ | (4,218) | $ | (2,437) | $ | (4,760) | $ | (1,563) | $ | (5,683) | $ | (4,106) | $ | (4,076) | $ | (4,447) | $ | (18,312) | |||||||||||||||
| 2019 | 2020 | ||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||||
| OTHER ITEMS, NET | |||||||||||||||||||||||||||||||||||
| Severance and other restructuring expenses | $ | — | $ | 6,703 | $ | 705 | $ | — | $ | 7,408 | $ | 1,334 | $ | 2,969 | $ | 3,270 | 1,072 | $ | 8,645 | ||||||||||||||||
| Strategic review process costs | 1,626 | (109) | — | 349 | 1,866 | 1,082 | 926 | 2,938 | 17,653 | 22,599 | |||||||||||||||||||||||||
| Total other items, net | $ | 1,626 | $ | 6,594 | $ | 705 | $ | 349 | $ | 9,274 | $ | 2,416 | $ | 3,895 | $ | 6,208 | $ | 18,725 | $ | 31,244 | |||||||||||||||
| 2019 | 2020 | ||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||||
| CASH INTEREST, NET & OTHER | |||||||||||||||||||||||||||||||||||
| Cash interest paid | $ | (1,629) | $ | (30,014) | $ | (882) | $ | (29,698) | $ | (62,223) | $ | (145) | $ | (28,591) | $ | (575) | $ | (28,441) | $ | (57,752) | |||||||||||||||
| Bond interest accrual adjustment | (14,625) | 14,625 | (14,625) | 14,625 | — | (14,625) | 13,894 | (14,035) | 14,376 | (390) | |||||||||||||||||||||||||
| Adjusted cash interest paid | (16,254) | (15,389) | (15,507) | (15,073) | (62,223) | (14,770) | (14,697) | (14,610) | (14,065) | (58,142) | |||||||||||||||||||||||||
| Interest income | 149 | 138 | 165 | 162 | 614 | 114 | 190 | 114 | 99 | 517 | |||||||||||||||||||||||||
| Total cash interest, net & other | $ | (16,105) | $ | (15,251) | $ | (15,342) | $ | (14,911) | $ | (61,609) | $ | (14,656) | $ | (14,507) | $ | (14,496) | $ | (13,966) | $ | (57,625) | |||||||||||||||
| 2019 | 2020 | ||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||||
| CAPITAL EXPENDITURES, NET | |||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | (3,606) | $ | (4,317) | $ | (5,863) | $ | (4,810) | $ | (18,596) | $ | (1,546) | $ | (2,144) | $ | (24,187) | $ | (9,426) | $ | (37,303) | |||||||||||||||
| 2019 | 2020 | ||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||||
| MISCELLANEOUS OTHER DISCLOSURES | |||||||||||||||||||||||||||||||||||
| Net income attributable to the noncontrolling interests | $ | 429 | $ | 3,043 | $ | 7,265 | $ | 5,419 | $ | 16,156 | $ | 791 | $ | 3,101 | $ | 10,728 | $ | 7,154 | $ | 21,774 | |||||||||||||||
| Cash taxes | $ | 1,677 | $ | 1,817 | $ | 137 | $ | (1,335) | $ | 2,296 | $ | 849 | $ | 1,717 | $ | 134 | $ | 5,246 | $ | 7,946 | |||||||||||||||
(1) GAAP revenue from prior year acquisitions for 2019 relate to acquisitions which occurred 2018.
(2) Contribution to organic revenue growth (decline) represents the change in revenue, measured on a constant currency basis, relative to the comparable pre-acquisition period for acquired businesses that are included in the Company's organic revenue growth (decline) calculation.
(3) Prior year revenue from dispositions reflects the incremental impact on revenue for the comparable period after the Company's disposition of such disposed business, plus revenue from each business disposed of by the Company in the previous year through the twelve month anniversary of the disposition.
Note: Actuals may not foot due to rounding.
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