PRESS RELEASE
FOR IMMEDIATE RELEASE
| FOR: | MDC Partners Inc. | | CONTACT: | Donna Granato |
| | 950 Third Avenue, 5th Floor | | | Director, Finance & Investor Relations |
| | | | | 646-429-1809 |
| | dgranato@mdc-partners.com | | | |
MDC PARTNERS INC. REPORTS RESULTS FOR THE
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2008
| · | Revenues increased to $584.6 million vs. $533.9 million in 2007, an increase of 9.5% |
| · | Organic revenue growth of 8.4% for 2008 |
| · | Net new business wins of $77.3 million for 2008 |
| · | MDC EBITDA increased to $61.0 million vs. $42.1 million in 2007, an increase of 45.2% |
| · | Income from Continuing Operations increased to $10.1 million vs. a loss of ($18.2) million in 2007 |
| · | Diluted Earnings per Share from Continuing Operations improved to $0.37 vs. a loss of ($0.73) in 2007 |
| · | Free Cash Flow increased to $32.9 million vs. $8.1 million in 2007 |
| · | Revenues decreased to $144.7 million vs. $152.1 million in Q4 2007, a decrease of 4.9% |
| · | Organic revenue decline of 1.3% for Q4 2008 |
| · | Net new business wins of $10.0 million for Q4 2008 |
| · | MDC EBITDA decreased to $17.1 million vs. $17.9 million in Q4 2007, a decrease of 4.3% |
| · | Income from Continuing Operations increased to $8.1 million vs. a loss of ($6.6) million in Q4 2007 |
| · | Diluted Earnings per Share from Continuing Operations increased to $0.29 vs. a loss of ($0.25) in Q4 2007 |
| · | Free Cash Flow increased to $9.2 million vs. $8.2 million in Q4 2007 |
NEW YORK, NY (February 24, 2009) – MDC Partners Inc. (“MDC Partners” or the “Company”) today announced financial results for the three and twelve months ended December 31, 2008.
“We are very proud of our achievements in 2008 on all financial metrics and believe that the Company will continue to grow in 2009 despite the difficult economic environment. Our focus on organic growth and providing the optimum environment to obtain and retain the best talent is enabling us to increase our market share and deliver superior results for our clients. This coupled with our fiscal discipline and ongoing initiatives to optimize our infrastructure costs have positioned the Company well to continue to grow and meet its long term financial goals and objectives. Given all of these initiatives, we believe that no matter what the year brings, MDC will exit 2009 an even stronger company,” said Miles S. Nadal, Chairman & CEO of MDC Partners.
Consolidated revenues for 2008 were $584.6 million, an increase of 9.5% compared to $533.9 million in 2007. MDC EBITDA for 2008 was $61.0 million, an increase of 45.2% compared to $42.1 million in 2007. Income from continuing operations for 2008 increased to $10.1 million vs. a loss of ($18.2) million in 2007. Net income in 2008 was $0.1 million compared to a loss of ($26.4) million in 2007. Diluted earnings per share from continuing operations for 2008 was $0.37 compared with a loss of ($0.73) and diluted earnings per common share of net income grew to $0.01 vs. a loss of ($1.05) during 2007. Free cash flow was $32.9 million in 2008 compared with $8.1 million in 2007.
Consolidated revenues for the fourth quarter of 2008 were $144.7 million, a decrease of 4.9% compared to $152.1 million in the fourth quarter of 2007. MDC EBITDA (as defined) for the fourth quarter of 2008 was $17.1 million, a decrease of 4.3% compared to $17.9 million in the fourth quarter of 2007. Income from continuing operations for the fourth quarter of 2008 increased to $8.1 million vs. a loss of ($6.6) million during the fourth quarter of 2007. Net income in the fourth quarter was $4.7 million compared to a loss of ($8.2) million in the fourth quarter of 2007. Diluted earnings per share from continuing operations for the fourth quarter of 2008 was $0.29 compared with a loss of ($0.25) in the same period of 2007 and diluted earnings per share of net income grew to $0.18 vs. a loss of ($0.31) during the same period of 2007. Free cash flow (as defined) was $9.2 million in the fourth quarter of 2008 compared with $8.2 million in the fourth quarter of 2007.
“We have made significant strides during 2008 to optimize our portfolio, significantly improve our working capital management and drive free cash flow and liquidity,” said David Doft, Chief Financial Officer of MDC Partners.
Conference Call
Management will host a conference call on February 24, at 4:30 p.m. (EST) to discuss our results. The conference call will be accessible by dialing 1-416-644-3417 or toll free 1-800-732-9303. An investor presentation has been posted on our website www.mdc-partners.com and will be referred to during the conference call.
A recording of the conference call will be available until Tuesday, March 10, 2009 by dialing 1-416-640-1917 or toll free 1-877-289-8525 (passcode 21296224#) or by visiting our website.
MDC Partners is a leading provider of marketing communications solutions and services to clients in North America, Europe and Latin America. Through its partnership of entrepreneurial firms it provides advertising, specialized communications and consulting services to leading brands. MDC Partners’ philosophy emphasizes the utilization of strategy and creativity to drive growth for its clients. “MDC Partners is The Place Where Great Talent Lives”. MDC Partners Class A shares are publicly traded on the NASDAQ under the symbol “MDCA” and on the Toronto Stock Exchange under the symbol “MDZ.A”.
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 defines as "non-GAAP financial measures." Management 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. These non-GAAP financial measures relate to: (1) presenting MDC’s share of EBITDA (as defined) for the three and twelve months ended December 31, 2008 and 2007; and (2) presenting Free Cash Flow (as defined) for the three and twelve months ended December 31, 2008 and 2007. Included in this earnings release are tables reconciling MDC’s reported results to arrive at these non-GAAP financial measures.
This press release contains forward-looking statements. The Company’s representatives may also make forward-looking statements orally from time to time. Statements in this press release that are not historical facts, including statements about the Company’s beliefs and expectations, recent business and economic trends, potential acquisitions, estimates of amounts for deferred acquisition consideration and “put” option rights, 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. 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 severe effects of national and regional economic downturn; |
| · | the Company’s ability to attract new clients and retain existing clients; |
| · | the financial success of the Company’s clients; |
| · | the Company’s ability to retain and attract key employees; |
| · | 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 “put” option right and deferred acquisition consideration; |
| · | the successful completion and integration of acquisitions which compliment and expand the Company’s business capabilities; and |
| · | foreign currency fluctuations. |
In addition to improving organic growth for its existing operations, the Company’s business strategy includes ongoing efforts to engage in material acquisitions of ownership interests in entities in the marketing communications services industry. The Company intends to finance these acquisitions by using available cash from operations and through incurrence of bridge or other debt financing, either of which may increase the Company’s leverage ratios, or by issuing equity, which may have a dilutive impact on existing shareholders proportionate ownership. At any given time the Company may be engaged in a number of discussions that may result in one or more material acquisitions. These opportunities require confidentiality and may involve negotiations that require quick responses by the Company. Although there is uncertainty that any of these discussions will result in definitive agreements or the completion of any transactions, the announcement of any such transaction may lead to increased volatility in the trading price of the Company’s securities.
Investors should carefully consider these risk factors and the additional risk factors outlined in more detail in the Annual Report on Form 10-K under the caption “Risk Factors” and in the Company’s other SEC filings.
| SCHEDULE 1 |
| | | | | | | | | | | | | |
| MDC PARTNERS INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (US$ in 000s, except share and per share amounts) |
| | | | | | | | | | | | | |
| | | Three Months
Ended December 31, | | | Twelve Months
Ended December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Revenue | | $ | 144,708 | | | $ | 152,092 | | | $ | 584,648 | | | $ | 533,883 | |
| | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | |
| Cost of services sold | | | 99,735 | | | | 96,363 | | | | 392,145 | | | | 343,297 | |
| Office and general expenses | | | 35,001 | | | | 37,115 | | | | 137,755 | | | | 138,234 | |
| Depreciation and amortization | | | 8,615 | | | | 7,657 | | | | 34,404 | | | | 28,975 | |
| | | | 143,351 | | | | 141,135 | | | | 564,304 | | | | 510,506 | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | | 1,357 | | | | 10,957 | | | | 20,344 | | | | 23,377 | |
| | | | | | | | | | | | | | | | | |
| Other Income (Expenses) | | | | | | | | | | | | | | | | |
| Gain (Loss) on sale of assets and other | | | 23 | | | | 858 | | | | (14 | ) | | | 3,165 | |
| Foreign exchange gain (Loss) | | | 7,675 | | | | (122 | ) | | | 13,257 | | | | (7,192 | ) |
| Interest expense | | | (3,858 | ) | | | (3,965 | ) | | | (14,998 | ) | | | (13,801 | ) |
| Interest income | | | 393 | | | | 532 | | | | 1,743 | | | | 2,702 | |
| Income (Loss) from Continuing Operations Before Income Taxes, | | | | | | | | | | | | | | | | |
| Equity in Affiliates and Minority Interests | | | 5,590 | | | | 8,260 | | | | 20,332 | | | | 8,251 | |
| | | | | | | | | | | | | | | | | |
| Income Taxes (Expense) Recovery | | | 4,018 | | | | (9,290 | ) | | | (2,397 | ) | | | (6,081 | ) |
| | | | | | | | | | | | | | | | | |
| Income (Loss) from Continuing Operations Before Equity in | | | | | | | | | | | | | | | | |
| Affiliates and Minority Interests | | | 9,608 | | | | (1,030 | ) | | | 17,935 | | | | 2,170 | |
| Equity in Earnings of Non-consolidated Affiliates | | | 59 | | | | 30 | | | | 349 | | | | 165 | |
| Minority Interests in Income of Consolidated Subsidiaries | | | (1,601 | ) | | | (5,597 | ) | | | (8,136 | ) | | | (20,517 | ) |
| | | | | | | | | | | | | | | | | |
| Income (Loss) From Continuing Operations | | | 8,066 | | | | (6,597 | ) | | | 10,148 | | | | (18,182 | ) |
| Loss from Discontinued Operations | | | (3,317 | ) | | | (1,589 | ) | | | (10,015 | ) | | | (8,173 | ) |
| Net Income (Loss) | | $ | 4,749 | | | $ | (8,186 | ) | | $ | 133 | | | $ | (26,355 | ) |
| | | | | | | | | | | | | | | | | |
| Income (Loss) Per Common Share | | | | | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | | | | | |
| Continuing Operations | | $ | 0.30 | | | $ | (0.25 | ) | | $ | 0.38 | | | $ | (0.73 | ) |
| Discontinued Operations | | $ | (0.12 | ) | | $ | (0.06 | ) | | | (0.37 | ) | | | (0.32 | ) |
| Net Income (Loss) | | $ | 0.18 | | | $ | (0.31 | ) | | $ | 0.01 | | | $ | (1.05 | ) |
| | | | | | | | | | | | | | | | | |
| Income (Loss) Per Common Share | | | | | | | | | | | | | | | | |
| Diluted: | | | | | | | | | | | | | | | | |
| Continuing Operations | | $ | 0.29 | | | $ | (0.25 | ) | | $ | 0.37 | | | $ | (0.73 | ) |
| Discontinued Operations | | $ | (0.11 | ) | | $ | (0.06 | ) | | | (0.36 | ) | | | (0.32 | ) |
| Net Income (Loss) | | $ | 0.18 | | | $ | (0.31 | ) | | $ | 0.01 | | | $ | (1.05 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted Average Number of Common Shares: | | | | | | | | | | | | | | | | |
| Basic | | | 26,896,938 | | | | 25,998,879 | | | | 26,765,839 | | | | 25,000,582 | |
| Diluted | | | 30,111,225 | | | | 25,998,879 | | | | 27,430,162 | | | | 25,000,582 | |
| SCHEDULE 2 |
| | | | | | | | | | | | | | | | |
| MDC PARTNERS INC. |
| RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA* |
| (US$ in 000s) |
| | | | | | | | | | | | | | | | |
| For the Three Months Ended December 31, 2008 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Strategic | | | Customer | | | Specialized | | | | | | | |
| | | Marketing | | | Relationship | | | Communication | | | | | | | |
| | | Services | | | Management | | | Services | | | Corporate | | | Total | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 86,986 | | | $ | 29,792 | | | $ | 27,930 | | | | - | | | $ | 144,708 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) as Reported | | $ | 6,577 | | | $ | (1,938 | ) | | $ | 2,406 | | | $ | (5,688 | ) | | $ | 1,357 | |
| | | | | | | | | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 5,970 | | | | 1,800 | | | | 649 | | | | 196 | | | | 8,615 | |
| Stock-based compensation | | | 4,669 | | | | 2,318 | | | | 634 | | | | 1,126 | | | | 8,747 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA * | | | 17,216 | | | | 2,180 | | | | 3,689 | | | | (4,366 | ) | | | 18,719 | |
| | | | | | | | | | | | | | | | | | | | | |
| Less: Minority Interests | | | (692 | ) | | | (20 | ) | | | (889 | ) | | | - | | | | (1,601 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| MDC's Share of EBITDA** | | $ | 16,524 | | | $ | 2,160 | | | $ | 2,800 | | | $ | (4,366 | ) | | $ | 17,118 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization, and stock-based compensation. |
| ** | MDC's Share of EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization and stock-based compensation less minority interests. |
| MDC PARTNERS INC. |
| RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA* |
| (US$ in 000s) |
| | | | | | | | | | | | | | | | |
| For the Three Months Ended December 31, 2007 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Strategic | | | Customer | | | Specialized | | | | | | | |
| | | Marketing | | | Relationship | | | Communication | | | | | | | |
| | | Services | | | Management | | | Services | | | Corporate | | | Total | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 84,009 | | | $ | 33,824 | | | $ | 34,259 | | | | - | | | $ | 152,092 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) as Reported | | $ | 9,360 | | | $ | 1,339 | | | $ | 5,724 | | | $ | (5,466 | ) | | $ | 10,957 | |
| | | | | | | | | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 5,310 | | | | 1,729 | | | | 528 | | | | 90 | | | | 7,657 | |
| Stock-based compensation | | | 3,677 | | | | 22 | | | | 125 | | | | 1,049 | | | | 4,873 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA* | | | 18,347 | | | | 3,090 | | | | 6,377 | | | | (4,327 | ) | | | 23,487 | |
| | | | | | | | | | | | | | | | | | | | | |
| Less: Minority Interests | | | (3,521 | ) | | | (53 | ) | | | (2,023 | ) | | | - | | | | (5,597 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| MDC's Share of EBITDA** | | $ | 14,826 | | | $ | 3,037 | | | $ | 4,354 | | | $ | (4,327 | ) | | $ | 17,890 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization, and stock-based compensation. |
| ** | MDC's Share of EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization and stock-based compensation less minority interests. |
| SCHEDULE 3 |
| | | | | | | | | | | | | | | | |
| MDC PARTNERS INC. |
| RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA* |
| (US$ in 000s) |
| | | | | | | | | | | | | | | | |
| For the Twelve Months Ended December 31, 2008 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Strategic | | | Customer | | | Specialized | | | | | | | |
| | | Marketing | | | Relationship | | | Communication | | | | | | | |
| | | Services | | | Management | | | Services | | | Corporate | | | Total | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 333,370 | | | $ | 133,970 | | | $ | 117,308 | | | | - | | | $ | 584,648 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) as Reported | | $ | 25,252 | | | $ | 2,744 | | | $ | 10,371 | | | $ | (18,023 | ) | | $ | 20,344 | |
| | | | | | | | | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 24,055 | | | | 7,350 | | | | 2,598 | | | | 401 | | | | 34,404 | |
| Stock-based compensation | | | 6,162 | | | | 2,416 | | | | 1,281 | | | | 4,578 | | | | 14,437 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA * | | | 55,469 | | | | 12,510 | | | | 14,250 | | | | (13,044 | ) | | | 69,185 | |
| | | | | | | | | | | | | | | | | | | | | |
| Less: Minority Interests | | | (4,402 | ) | | | (266 | ) | | | (3,468 | ) | | | - | | | | (8,136 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| MDC's Share of EBITDA** | | $ | 51,067 | | | $ | 12,244 | | | $ | 10,782 | | | $ | (13,044 | ) | | $ | 61,049 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization, and stock-based compensation. |
| ** | MDC's Share of EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization, and stock-based compensation less minority interests. |
| MDC PARTNERS INC. |
| RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA* |
| (US$ in 000s) |
| | | | | | | | | | | | | | | | |
| For the Twelve Months Ended December 31, 2007 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Strategic | | | Customer | | | Specialized | | | | | | | |
| | | Marketing | | | Relationship | | | Communication | | | | | | | |
| | | Services | | | Management | | | Services | | | Corporate | | | Total | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 307,236 | | | $ | 112,958 | | | $ | 113,689 | | | | - | | | $ | 533,883 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) as Reported | | $ | 29,288 | | | $ | 3,338 | | | $ | 13,157 | | | $ | (22,406 | ) | | $ | 23,377 | |
| | | | | | | | | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 20,275 | | | | 6,488 | | | | 1,954 | | | | 258 | | | | 28,975 | |
| Stock-based compensation | | | 5,194 | | | | 91 | | | | 489 | | | | 4,443 | | | | 10,217 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA* | | | 54,757 | | | | 9,917 | | | | 15,600 | | | | (17,705 | ) | | | 62,569 | |
| | | | | | | | | | | | | | | | | | | | | |
| Less: Minority Interests | | | (15,653 | ) | | | (122 | ) | | | (4,742 | ) | | | - | | | | (20,517 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| MDC's Share of EBITDA** | | $ | 39,104 | | | $ | 9,795 | | | $ | 10,858 | | | $ | (17,705 | ) | | $ | 42,052 | |
| | | | | | | | | | | | | | | | | | | | | |
| EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization, and stock-based compensation. |
| ** | MDC's Share of EBITDA is a non-GAAP measure, but as shown above it represents operating income (loss) plus depreciation and amortization and stock-based compensation less minority interests. |
|
| | | | | | | | | | | | | |
| MDC PARTNERS INC. |
| FREE CASH FLOW |
| (US$ in 000s) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Three Months
Ended December 31, | | | Twelve Months
Ended December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| MDC EBITDA | | $ | 17,118 | | | $ | 17,890 | | | $ | 61,049 | | | $ | 42,052 | |
| Capital Expenditures | | | (3,963 | ) | | | (4,980 | ) | | | (14,395 | ) | | | (19,453 | ) |
| Cash Taxes | | | (101 | ) | | | (11 | ) | | | (1,037 | ) | | | (1,216 | ) |
| Cash Interest, net | | | (3,874 | ) | | | (4,676 | ) | | | (12,724 | ) | | | (13,245 | ) |
| Free Cash Flow | | $ | 9,180 | | | $ | 8,223 | | | $ | 32,893 | | | $ | 8,138 | |
| SCHEDULE 5 |
| | | | | | | |
| MDC PARTNERS INC. |
| CONSOLIDATED BALANCE SHEETS |
| (US$ in 000s) |
| | | | | | | |
| | | | | | | |
| | | December 31, | |
| | | 2008 | | | 2007 | |
| | | | | | | |
| Assets | | | | | | |
| Current Assets: | | | | | | |
| Cash and cash equivalents | | $ | 41,331 | | | $ | 10,410 | |
| Accounts receivable, net | | | 106,954 | | | | 135,260 | |
| Expenditures billable to clients | | | 16,949 | | | | 19,409 | |
| Prepaid expenses | | | 5,240 | | | | 5,937 | |
| Other current assets | | | 5,270 | | | | 2,422 | |
| Total Current Assets | | | 175,744 | | | | 173,438 | |
| | | | | | | | | |
| Fixed assets, net | | | 44,021 | | | | 47,440 | |
| Investment in affiliates | | | 1,593 | | | | 1,434 | |
| Goodwill | | | 238,214 | | | | 217,726 | |
| Other intangible assets, net | | | 46,852 | | | | 55,399 | |
| Deferred tax assets | | | 11,926 | | | | 9,175 | |
| Other assets | | | 10,889 | | | | 16,086 | |
| Total Assets | | $ | 529,239 | | | $ | 520,698 | |
| | | | | | | | | |
| | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Accounts payable | | $ | 75,360 | | | $ | 65,839 | |
| Accrued and other liabilities | | | 53,199 | | | | 74,668 | |
| Advance billings, net | | | 50,053 | | | | 50,988 | |
| Current portion of long term debt | | | 1,546 | | | | 1,796 | |
| Deferred acquisition consideration | | | 7,677 | | | | 2,511 | |
| Total Current Liabilities | | | 187,835 | | | | 195,802 | |
| | | | | | | | | |
| Revolving credit facility | | | 9,701 | | | | 1,901 | |
| Long-term debt | | | 133,305 | | | | 115,662 | |
| Convertible notes | | | 36,946 | | | | 45,395 | |
| Other liabilities | | | 6,949 | | | | 8,267 | |
| Deferred tax liabilities | | | 4,700 | | | | 819 | |
| Total Liabilities | | | 379,436 | | | | 367,846 | |
| | | | | | | | | |
| Minority Interests | | | 22,622 | | | | 24,919 | |
| | | | | | | | | |
| Shareholders' Equity: | | | | | | | | |
| Common stock | | | 213,534 | | | | 207,959 | |
| Share capital to be issued | | | - | | | | 214 | |
| Additional paid in capital | | | 33,470 | | | | 26,743 | |
| Accumulated deficit | | | (112,836 | ) | | | (112,969 | ) |
| Stock subscription receivable | | | (354 | ) | | | (357 | ) |
| Accumulated other comprehensive income | | | (6,633 | ) | | | 6,343 | |
| Total Shareholders' Equity | | | 127,181 | | | | 127,933 | |
| | | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 529,239 | | | $ | 520,698 | |
| SCHEDULE 6 |
| | | | | | | |
| MDC PARTNERS INC. |
| SUMMARY CASH FLOW DATA |
| (US$ in 000s) |
| | | | | | | |
| | | | | | | |
| | | December 31, | |
| | | 2008 | | | 2007 | |
| | | | | | | |
| Cash flows from continuing operating activities | | $ | 60,945 | | | $ | 3,124 | |
| Discontinued operations | | | (3,499 | ) | | | 1,008 | |
| Net cash provided by operating activities | | $ | 57,446 | | | $ | 4,132 | |
| | | | | | | | | |
| Net cash used in investing activities | | $ | (50,186 | ) | | $ | (60,914 | ) |
| | | | | | | | | |
| Net cash provided by financing activities | | $ | 23,510 | | | $ | 60,929 | |
