DG FastChannel Raises 2007 and 2008 Pro Forma Revenue and EBITDA Outlook.- 2007 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 Revenue of $116 Million to $118 Million and 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 Approximately $39 Million Exceed Earlier Guidance - 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 an updated preview of 2007 pro forma financial results which are ahead of prior guidance. The Company also increased its guidance for 2008 pro forma financial results. Pro forma for the transactions closed in 2007 (as if the Pathfire, Point.360 and GTN GTN gestational trophoblastic neoplasia. acquisitions were combined with DG FastChannel's operations as of January 1, 2007 and reflecting actual and anticipated expense synergies effective as of January 1, 2007), DG FastChannel now expects to generate full year 2007 pro forma revenue in a range of $116 million to $118 million and pro forma EBITDA of approximately $39 million. DG FastChannel's prior 2007 pro forma guidance was for revenue in a range of $110 million to $113 million and EBITDA in a range of $37 million to $39 million. DG FastChannel also increased its 2008 revenue and EBITDA guidance on a pro forma basis (assuming all entities acquired in 2007 were combined with DG FastChannel as of January 1, 2007 and reflecting current estimates of expense synergies). The Company now expects full year 2008 revenue in a range of $126 million to $130 million and pro forma EBITDA in a range of approximately $44 million to $48 million. DG FastChannel's prior 2008 pro forma guidance was for revenue in a range of $122 million to $126 million and pro forma EBITDA in a range of $41 million to $44 million. DG FastChannel, Inc. announced separately today that it had agreed to acquire the Vyvx advertising services business including its distribution, post-production and related operations. The guidance provided above does not include results in either 2007 or 2008 for the Vyvx advertising services business. Scott K. Ginsburg, Chairman and Chief Executive Officer of DG FastChannel, commented, "The 2007 pro forma estimates reflect strong demand for the delivery of advertising to television, cable and television and cable networks. As we look towards 2008, several key indicators are very promising and have led us to upgrade our 2008 estimates: * HD Adoption The nation's television and cable outlets continued transformation toward an all-digital broadcast environment in February 2009, and the continued adoption of major advertisers and brands of HD advertising will continue to improve our prospects. We expect to report record 2007 fourth quarter HD distribution revenues, and this shift towards HD advertising will create positive momentum in 2008. * Political Advertising As we look towards next year, the Company has secured commitments from every major candidate from both major political parties to deliver their advertising for the 2008 presidential election. We expect heavy advertising demand from the Presidential campaigns as well as the many contested elections taking place throughout the country. * Interactive Rich Media Advertising In the 2007 fourth quarter, we have successfully launched our newly developed, interactive marketing services product, and participation in the rapidly growing online video advertising vertical will improve our company's growth profile. "As we conclude this year's business and move towards the new year," Mr. Ginsburg concluded, "DG FastChannel's product line-up together with the realization of 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 our recent transactions will result in record financial results in the fourth quarter and bode bode 1 v. bod·ed, bod·ing, bodes v.tr. 1. To be an omen of: heavy seas that boded trouble for small craft. 2. well for 2008." EBITDA Definition EBITDA is defined as earnings before interest, taxes, 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. , 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. 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. 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 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. and other documents filed with the SEC. DG FastChannel assumes no obligation to publicly update or revise any forward-looking statements. |
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