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:
2016	$	309,042		$	337,047	$	349,254		$	390,442
2015	$	302,222		$	336,606	$	328,415		$	359,013
Cost of services sold:
2016	$	211,446		$	228,835	$	235,659		$	260,193
2015	$	210,419		$	225,042	$	212,925		$	231,330
Income (loss) from continuing operations:
2016	$	(22,772	)	$	2,089	$	(31,081	)	$	11,143
2015	$	(22,941	)	$	31,548	$	(4,690	)	$	(24,036	)
Net income (loss) attributable to MDC Partners Inc.:
2016	$	(23,631	)	$	835	$	(32,140	)	$	9,097
2015	$	(31,615	)	$	30,036	$	(8,128	)	$	(25,747	)
Income (loss) per common share:
Basic
Continuing operations:
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17
2015	$	(0.51	)	$	0.58	$	(0.14	)	$	(0.52	)
Net income (loss):
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17
2015	$	(0.64	)	$	0.60	$	(0.16	)	$	(0.52	)
Diluted
Continuing operations:
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17		⁽¹⁾
2015	$	(0.51	)	$	0.57	$	(0.14	)	$	(0.52	)
Net income (loss):
2016	$	(0.47	)	$	0.02	$	(0.62	)	$	0.17		⁽¹⁾
2015	$	(0.64	)	$	0.60	$	(0.16	)	$	(0.52	)


(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 2016 and 2015 included a foreign exchange loss of $10,081 and $9,531, respectively.


•	The fourth quarter of 2016 and 2015 included stock-based compensation charges of $5,560 and $4,771, respectively.


•	The fourth quarter of 2016 and 2015 included deferred acquisition adjustments of $(9,211) and $41,913, respectively.


•	The third and fourth quarter of 2016 included goodwill impairment charges of $29,631 and $18,893, respectively.