This week, MDC Partners said it expects to file its overdue third-quarter financial statements with the U.S. Securities & Exchange Commission.
The Toronto-based holding company said the delay was caused by "relatively minor and insignificant matters" that will cause those results—and possibly those from earlier quarters—to be restated.
MDC appointed a new auditor, KPMG, at the start of the year, and the accounting firm began a more detailed review of the company's balance sheet in the third quarter. MDC said that in doing so, KPMG identified some "complex items" for which the accounting firm had a "different interpretation" that will result in non-cash, non-recurring adjustments.
MDC stressed the issues had nothing to do with its operating units, which include Miami-based Crispin Porter + Bogusky and New York-based Kirshenbaum Bond + Partners. As a result of the delay, MDC asked Canadian regulatory authorities to prohibit certain current and former company insiders from trading in its shares until the filing is made.