Quarterly Results of Operations (Unaudited)

The following table sets forth a summary of the Company’s consolidated unaudited quarterly results of operations for the years ended December 31, in thousands of dollars, except per share amounts.



	Quarters
	First			Second		Third			Fourth
Revenue:
2017	$	344,700		$	390,532	$	375,800		$	402,747
2016	$	309,042		$	337,047	$	349,254		$	390,442
Cost of services sold:
2017	$	237,563		$	267,822	$	249,418		$	268,673
2016	$	211,446		$	228,835	$	235,659		$	260,193
Income (loss) from continuing operations:
2017	$	(9,683	)	$	13,467	$	21,984		$	231,455
2016	$	(22,773	)	$	2,089	$	(31,081	)	$	11,144
Net income (loss) attributable to MDC Partners Inc.:
2017	$	(10,566	)	$	11,253	$	18,493		$	222,668
2016	$	(23,632	)	$	835	$	(32,140	)	$	9,098
Income (loss) per common share:
Basic
Continuing operations:
2017	$	(0.21	)	$	0.14	$	0.25		$	3.33
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17
Net income (loss):
2017	$	(0.21	)	$	0.14	$	0.25		$	3.33
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17
Diluted
Continuing operations:
2017	$	(0.21	)	$	0.14	$	0.24		$	3.30
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17	⁽¹⁾
Net income (loss):
2017	$	(0.21	)	$	0.14	$	0.24		$	3.30
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17	⁽¹⁾


(1)	The diluted income per share calculation for the fourth quarter of 2016 excludes the Company’s option to settle the deferred acquisition consideration in shares related to F&B. If such shares were included, the diluted income per common share would be $0.14.

The above revenue, cost of services sold, and income (loss) from continuing operations have primarily been affected by acquisitions, divestitures and discontinued operations.

Historically, with some exceptions, the Company’s fourth quarter generates the highest quarterly revenues in a year. The fourth quarter has historically been the period in the year in which the highest volumes of media placements and retail related consumer marketing occur.

Income (loss) from continuing operations and net loss have been affected as follows:


•	The fourth quarter of 2017 and 2016 included a foreign exchange loss of $659 and $10,081, respectively.


•	The fourth quarter of 2017 and 2016 included stock-based compensation charges of $7,480 and $5,560, respectively.


•	The fourth quarter of 2017 and 2016 included changes in deferred acquisition resulting in income of $18,173 and $9,211, respectively.


•	The fourth quarter of 2017 included goodwill and other asset impairment charges of $4,415 and the third and fourth quarter of 2016 included goodwill impairment charges of $29,631 and $18,893, respectively.


•	The fourth quarter of 2017 included income tax benefit related to the release of the Company’s valuation allowance of $226,466. The fourth quarter of 2016 included income tax expense of $925 relating to the increase to the valuation allowance.