MDC Partners is starting off 2016 on a high note, with full-year revenue increasing to $1.33 billion -- up 8.4% from $1.22 billion year-over-over thanks to "disciplined financial stewardship," says CEO and Chairman Scott Kauffman.
MDC's organic revenue increased 7.1% in 2015 and 7.2% in the fourth quarter after the company significantly reduced its "billable pass-through costs."
New business activity increased $27.4 million (revenues) during the fourth quarter and $116.7 million for the year.
"Our results are proof that our business model continues to be unique in the market, and that our partners are delivering some of the most inventive and effective work for their clients," says Kauffman. "Our outlook for the year ahead is bullish. We have an active pipeline of new business and we are executing well on our plans to extend our international reach, to build our differentiated and modern media buying and planning platform, and to augment our capabilities through deliberate and strategic M&A.”
For 2016, the company is forecasting that it will accrue revenues of between $1.41 billion and $1.44 billion and that earnings before interest, taxes, depreciation and amortization will total between $225 million and $235 million, both of which are lower than analyst expectations.
Despite these solid results, the network's stock price is off 1.1% in after-hours trading to $17.65 due to its full-year net loss of $37.4 million versus $24.1 million in the same period last year and the fact that these results missed analysts' higher expectations.
On a call with analysts Thursday afternoon after the markets closed the company provided no new information on the ongoing SEC investigation into the company’s accounting and stock trading practices that began in October of 2014 and that company disclosed in April of 2015.