MDC Partners took a $21 million charge against earnings in the third quarter resulting in a net loss for the period of $18.2 million versus net income of $14.1 in Q3 2017, the company reported today.
Revenues were flat at $375.8 million due in large part to accounting rule changes, per the company, while organic revenue growth (which excludes currency fluctuations and M&A activity) was 1.5%.
The accounting rule change (ASC 606) reduced revenues by 2.2%, MDC said.
Revenue for the first nine months of the year was $1.08 billion down from $1.11 billion during the same period last year. Organic growth for the first three quarters was 0.2%.
The company reported a net loss for the nine-month period of $48.3 million, also due to an impairment charge.
CFO David Doft stated that recent head-count reductions and real estate consolidation should yield $29 million in savings in 2019.
For the full year, the company now expects approximately 1% organic growth.
The company’s previously announced strategic review process led by LionTree Advisors and JP Morgan and CEO search led by Spencer Stuart are ongoing.