MDC Partners Q3: Net Income Not Noted in "Preliminary" Numbers

(MoneyWatch)  MDC Partners released a "preliminary" set of Q3 2009 numbers today that did not include its net income, the profit from the company that (in theory) belongs to investors and shareholders. Revenues decreased 5.3 percent to $134.6 million, the company reported. "EBITDA," a form of profit that does not include interest, taxes, depreciation and amortization, increased 9.9 percent to $17.7 million, the company said.

That's fine, but unless you know what the profit was after those items are taken out, you still don't know if MDC made a profit this quarter. MDC has a policy of asking investors to focus on its EBITDA and not on its actual earnings. As Warren Buffett once said:

"References to ebitda make us shudder--does management think the tooth fairy pays for capital expenditures?"

To get an idea of how sparse today's release is compared to the one MDC put out for Q2, compare them here and here. Presumably, MDC will release a complete statement in a few days time to the SEC.

The one thing MDC's release does make clear is that BNET's prediction of a few days ago -- that profits may be up even as revenues decrease, which may not be a good thing -- seems to be coming true. Adweek noted that MDC saw some client defections in the quarter:

In the quarter, MDC agencies lost significant business. In late July, Kirshenbaum Bond + Partners did not prevail as the incumbent creative lead on Wendy's, an account that spent $275 million in 2008, per Nielsen. The following month Crispin Porter + Bogusky declined to participate in a review of its Volkswagen of America business, an account billing $220 million, according to Nielsen.

MDC also reconfirmed its revenue guidance for 2009: It believes it will make $545-$575 million by year's end. Revenues for last nine months are $396 million. Which means that MDC will have to book slightly more than 25 percent of its revenues in Q4 in order to meet the lower end of its guidance. Revenues are not booked evenly through the year -- Christmas is a busy time in the ad business -- so that seems doable, but it's not guaranteed.

• Related:
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• Q3 Preview: Revenues, Not Earnings, Will Be Agencies' Key Measure - and They Will Be Down
• MDC Partners to Continue Axing Jobs; 1,300 Gone So Far
• How Big Is MDC's Deal With Attention Partners? Not Very.
• Could Crispin Steal Xbox From McCann? One Wall Street Analyst Thinks Maybe
• MDC's Crispin and Kirshenbaum Lose Accounts as Obligations to Partners Increase
• MDC Partners Q2: Nadal's Stated Goal of Growth Recedes Ever Faster