DG FastChannel Previews 2006 Fourth Quarter Results.Forecasts 7 to 9 Percent Year over Year Growth in Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Core Ads Business Revenues Expects Fourth Quarter 2006 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of More than $6.5 Million Compared to $2.7 Million in 2005 DALLAS -- DG FastChannel, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DGIT), the leading provider of digital media advertising services to the advertising and broadcast industries, today provided a preliminary preview of financial results for the fourth quarter ending December 31, 2006. For the three months ending December 31, 2006, DG FastChannel expects to report consolidated revenues of approximately $21.5 - $22.0 million, compared to consolidated revenue of $14.4 million as reported and pro forma revenue of $20.6 million (reflecting the FastChannel Network merger) in the three months ended December 31, 2005. DG FastChannel expects to report a range of 7 to 9 percent growth in pro forma core Ads revenues for the three months ending December 31, 2006 compared with the same period a year ago. Core Ads revenues are comprised of video, audio and print distribution, Source TV/Creative Channel and related services, and exclude the Company's StarGuide Digital Networks division. Based on anticipated fourth quarter 2006 revenue levels, DG FastChannel expects adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges) in the three months ending December 31, 2006 to rise to more than $6.5 million, compared to $2.7 million of reported EBITDA for the same period last year. Scott K. Ginsburg, Chairman and Chief Executive Officer of DG FastChannel, commented, "The fourth quarter estimates reflect the strength of the television spot business as well as the continuing progress of the Company's business model. Increases in the delivery of political, telecom, filmed entertainment and automotive spots, compared to last year, provide the basis for a very positive quarter. Increased electronic video traffic, implementation of next-generation technologies to improve the advertising workflow, growing advertiser demand for HD deliveries and realizing the full cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. from the FastChannel Network, Inc. merger all point to a positive outlook for our 2007 financial results." On December 19, 2006, DG FastChannel closed a public offering of 2,999,400 shares of its common stock (including the effect of the underwriters' purchase of an additional 443,400 shares to cover over-allotments). Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the company, after underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. discounts and commissions and expenses, were approximately $31.5 million. Reflecting the common stock offering, DG FastChannel has approximately 15.9 million common shares outstanding. The 2006 fourth quarter StarGuide division revenues are estimated to be $0.5 million compared to $1.4 million in the year ago quarter. As previously announced, DG FastChannel continues to evaluate options to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. the assets and intellectual property of its StarGuide Digital Networks division. DG FastChannel expects to report actual results for the quarter ended December 31, 2006 in mid-February 2007. Details of the conference call and simultaneous webcast will be provided at a later time. Digital Generation Systems, Inc. and FastChannel Network, Inc. merged to become DG FastChannel on June 1, 2006. EBITDA Definition EBITDA is defined as earnings before interest, taxes, impairment, restructuring, depreciation and amortization. Although EBITDA is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ('GAAP'), the Company believes they may be useful to an investor in evaluating its performance. However, investors should not consider these measures in isolation or as substitutes for operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . In addition, because EBITDA is not calculated in accordance with generally accepted accounting principles, it may not necessarily be comparable to similarly titled measures employed by other companies. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company, including the expansion of its digital distribution network, and the demand among certain clients for digital audio and video delivery services. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to DG FastChannel's business are set forth in the Company's Registration Statement on Form S-3/A filed with the Securities and Exchange Commission on December 4, 2006. DG FastChannel assumes no obligation to publicly update or revise any forward-looking statements. About DG FastChannel, Inc. DG FastChannel provides innovative, technology-based solutions to help advertisers and agencies work faster, smarter and more competitively. DG FastChannel delivers the standard in digital media services to the advertising, broadcast and publishing industries. The Company utilizes satellite and Internet transmission technologies and has deployed a suite of digital media intelligence and asset management tools designed specifically for the advertising industry, including creative and production resources, broadcast verification, and digital asset management. The Company has an online media distribution network used by more than 5,000 advertisers and agencies, and over 21,000 online radio, television, cable, network and print publishing destinations. For more information visit www.dgsystems.com, www.fastchannel.com or www.dgfastchannel.com. |
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