DG Systems' Second Quarter EPS Turns Positive At $0.02; Reports Record Second Quarter EBITDA of $3.4 Million.Business Editors
DALLAS--(BUSINESS WIRE)--Aug. 9, 2002
Operating Income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Also Turns Positive and Grows to $1.6 Million
DG Systems, Inc. (Nasdaq: DGIT), the leading digital technology provider for managing and delivering short- and long-form audio and video content to the broadcast industry, today announced financial results for the second quarter and six month periods ended June June: see month. 30, 2002.
Consolidated revenues for the three months ended June 30, 2002 were $16.0 million, compared to $18.6 million in the same period last year. Second quarter 2002 revenue comparisons reflect lower satellite receiver sales from the Company's StarGuide division, partially offset by a rise in DG's ad delivery revenues. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss in the 2001 second quarter of $2.9 million, or a loss of $0.04 per diluted share. Positive net income comparisons reflect cost containment cost containment,
n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. initiatives, lower interest expense and lower amortization expense related to the change in accounting principles pursuant to SFAS SFAS Statement of Financial Accounting Standards
SFAS Special Forces Assessment and Selection
SFAS Student Financial Aid Services
SFAS Sport Fishing Association of Singapore
SFAS Safety Features Actuation System
SFAS Statewide Fixed Assets System 142. During the first six months of 2002, DG used its free cash flow to reduce its outstanding debt by $2.3 million.
Consolidated revenues for the six months ended June 30, 2002 were $31.0 million, compared to revenues of $37.5 million in the first six months of 2001. EBITDA for the first six months of 2002 was $5.4 million, compared to EBITDA of $6.0 million for the first six months of 2001. Before giving effect to SFAS 142, the change in accounting principle regarding the valuation of the Company's goodwill, DG's net income for the first half of 2002 was $319,000, or break-even on a per share basis, compared to a net loss of $4.3 million in the first half of 2001. Reflecting SFAS 142, the change in accounting principle, the Company reported a net loss for the first six months of 2002 of $131.0 million, or $1.85 per diluted share, compared to a net loss in the comparable year-ago period of $4.3 million, or $0.06 per diluted share.
Commenting on the results, Matthew Matthew
one of the twelve disciples. [N.T.: Matthew]
See : Evangelism E. Devine, Chief Executive Officer of DG Systems, stated, "DG reported a solid second quarter, achieving higher EBITDA, generating positive operating income, net income and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. while continuing to reduce our bank borrowings. The second quarter and the past several quarters demonstrate the success we have achieved in positioning DG to deliver positive operating results, despite challenging advertising and economic environments, by growing our video deliveries and streamlining our cost structure.
"We recently won new distribution business from major brand advertisers in the food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , restaurant and fast food, and medicine and remedy industries, who were attracted by our industry leading, secure digital distribution network, which recently surpassed 900 television broadcast facilities nationwide, and suite of state-of-the-art media asset management products. We also leveraged the strength and security of our audio network to simultaneously digitally deliver on behalf of Warner Bros. Records Warner Bros. Records Inc. is an American record label that operates as a wholly owned subsidiary of Warner Music Group. It is internationally known as WEA International Inc. every release from the new Red Hot Chili Peppers Red Hot Chili Peppers are an American alternative rock band formed in Los Angeles, California in 1983. For most of its career, the group has consisted of vocalist Anthony Kiedis, guitarist John Frusciante, bassist Michael "Flea" Balzary, and drummer Chad Smith. album to radio stations across the U.S.
"Our outlook for the remainder of 2002 continues to improve, as we attract new customers with innovative digital media asset management services such as NetClear and AdCatalog, take advantage of the anticipated strengthening of the advertising environment, and bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation).
A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our sales and marketing efforts. We expect to remain on track to generate positive operating income, net income and earnings per share in 2002, before one-time charges."
About DG Systems, Inc.
DG Systems and the Company's StarGuide division provide the standard in Digital Media Exchange services for the advertising and broadcast industries, featuring innovative satellite and Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the transmission technology solutions and a suite of digital media asset management tools. DG's extensive industry network is the largest in the advertising and broadcasting industries, reaching more than 5,000 advertisers and agencies, 7,500 radio stations, and over 900 television broadcast facilities with innovative delivery and management solutions for short- and long-form audio and video content. More information is available at www.dgsystems.com.
The Company's second quarter conference call will be broadcast live on the Internet at 11:00 a.m. EDT EDT
Eastern Daylight Time
EDT Eastern Daylight Time
EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York
EDT on August 9, 2002. The webcast is open to the general public. Interested parties may access the live call on the Internet via the Company's web site at www.dgsystems.com. Please allow 15 minutes to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary software.
This release contains 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. 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 Systems' business are set forth in the company's 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.
See 10-K. filed with the Securities and Exchange Commission on March 28, 2002.
Digital Generation Systems, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Six Months Ended Ended June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- Revenues $16,039 $18,588 $31,036 $37,519 Operating expenses, excluding depreciation & amortization 12,685 15,384 25,662 31,493 ------- ------- ------- ------- EBITDA 3,354 3,204 5,374 6,026 Depreciation & amortization 1,758 4,343 3,399 8,481 Restructuring charge - 791 771 791 ------- ------- ------- ------- Operating income (loss) $ 1,596 $(1,930) $ 1,204 $(3,246) Interest expense and other, net 420 937 885 1,051 ------- ------- ------- ------- Net income (loss) before cumulative effect of change in accounting principle 1,176 (2,867) 319 (4,297) Cumulative effect of change in accounting principle - - 131,291 - ------- ------- ------- ------- Net income (loss) $ 1,176 $(2,867) $(130,972) $(4,297) ======= ======= ========= ======= Basic and diluted income (loss) per common share before cumulative effect of change in accounting principle: $ 0.02 $ (0.04) $ 0.00 $ (0.06) ======= ======= ========= ======= Basic and diluted net income (loss) per common share $ 0.02 $ (0.04) $ (1.85) $ (0.06) ======= ======= ========= ======= Basic weighted average common shares outstanding 70,794 70,563 70,789 70,123 ======= ======= ========= ======= Diluted weighted average common shares outstanding 70,851 70,563 70,789 70,123 ======= ======= ========= =======