• by David Goetzl  @dgoetzl, July 31, 2009

Even as larger holding companies struggled, MDC Partners -- which includes agencies Crispin Porter + Bogusky and Kirshenbaum Bond -- swung to a profit in the second quarter, albeit a tiny one.

The $79,000 in earnings came after a loss of $4.5 million a year ago. Revenues, however, were down 14% to $135 million.

MDC, which has about 1% of the U.S. market, saw its stock price increase nearly 6% Friday to finish at close to $7 a share. The larger holding companies -- Omnicom, WPP, IPG and Publicis -- also saw share prices rise, although by smaller amounts.

Miles Nadal, CEO of Toronto-based MDC, said the company anticipated the difficult economy several years ago and took "a proactive approach" to managing expenses, including a reduction of some 1,300 employees in the last 18 months.

Speaking on a conference call to discuss second-quarter results, Nadal said the company has nonetheless invested in senior-level talent, and is finding that leading executives at other agencies are increasingly calling MDC agencies and asking for jobs.

Taking a swipe at the competition, he said: "The dissatisfaction that people are feeling at other large agencies that have institutionalized mediocrity is at an all-time high."

Nadal has argued that MDC may be better-positioned than other holding companies during the recession because MDC derives few revenues from media buying at a time when advertisers are holding back.

Some 28% of MDC's revenue comes from digital operations -- a would-be $38 million in the second quarter -- and Nadal says the company is aiming to increase the percentage to 40% over the next three to five years.