Revenue up, but MDC sees losses widen to $43.2M
April 25, 2013 | Canadian Press | Comments
MDC Partners Inc. reported a US$43.2-million loss in the first quarter, as the marketing communications services provider cited expenses related to a recent refinancing as the culprit.
However, the company also increased its financial guidance for the year for free cash flow, revenue and earnings before interest, taxes, depreciation and amortization.
MDC said it now expects revenue between $1.145 billion and $1.170 billion, up from earlier guidance of $1.125 billion to $1.150 billion, while it now expects EBITDA of $142 million to $146 million, up from $132 million to $135 million.
Free cash flow is expected to total between $70 million and $75 million, up from earlier guidance of $55 million to $60 million.
MDC said the loss for the three months ended March 31 amounted to $1.33 per diluted share, compared with a loss of U$26.3 million or 84 cents per diluted share in the first quarter of 2012.
The company said the most recent quarter included a US$55.6 million charge related to the redemption of notes in the company’s recent refinancing.
Revenue rose 13% to US$267 million from $235.2 million.
MDC provides marketing communications and consulting services, including advertising, interactive and mobile marketing, direct marketing, sales promotion, corporate communications and market research. It’s Canadian holdings include Union, KBS+, Veritas Communications and Bruce Mau Design, among others.
The company has operations in the United States, Canada, Europe and the Caribbean.