Quarterly Results of Operations

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

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:
2020	$	327,742	$	259,678	$	283,423	$	328,168
2019	$	328,791	$	362,130	$	342,907	$	381,975
Cost of services sold:
2020	$	222,693	$	165,632	$	172,531	$	209,043
2019	$	237,154	$	240,749	$	222,448	$	260,725
Net Income (loss):
2020	$	1,794	$	2,508	$	14,804	$	(226,303)
2019	$	316	$	7,333	$	5,513	$	(2,259)
Net income (loss) attributable to MDC Partners Inc.:
2020	$	1,003	$	(593)	$	4,076	$	(233,457)
2019	$	(113)	$	4,290	$	(1,752)	$	(7,678)
Income (loss) per common share:
Basic
2020	$	(0.03)	$	(0.06)	$	(0.07)	$	(3.23)
2019	$	(0.04)	$	0.01	$	(0.07)	$	(0.15)
Diluted
2020	$	(0.03)	$	(0.06)	$	(0.07)	$	(3.23)
2019	$	(0.04)	$	0.01	$	(0.07)	$	(0.15)

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

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) has been affected as follows:

•The fourth quarter of 2020 and 2019 included a foreign exchange gain of $6,274 and a gain of $4,349, respectively.

•The fourth quarter of 2020 and 2019 included stock-based compensation charges of $3,611 and $18,408, respectively.

•The fourth quarter of 2020 and 2019 included changes in deferred acquisition resulting in income of $41,672 and $9,030, respectively.

•The fourth quarter of 2020 and 2019 included goodwill, intangible asset, right-of-use asset, related leasehold improvement impairment charges, and expenses to accelerate the variable costs associated with certain leases of $77,240 and goodwill, right-of-use assets and related leasehold improvement impairment charges of $6,655, respectively.•The fourth quarter of 2020 included income tax expense of approximately $129 million, related to the increase in the valuation allowance primarily for U.S. deferred tax assets.