DG Systems Reports Record Fourth Quarter Operating Results; Revenues Rise 9%, EBITDA Increases 118% to $5.5 Million.Business Editors
DALLAS--(BUSINESS WIRE)--Feb. 14, 2003
Fourth Quarter 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. Reaches $0.05 in 2002 vs. $0.03 Loss in 2001
DG Systems, Inc. (Nasdaq: DGIT), the leading digital technology provider for managing and delivering short- and long-form audio and video content to broadcasters, today announced financial results for the three and twelve-month periods ended December December: see month. 31, 2002.
Consolidated revenues for the three months ended December 31, 2002 grew 9% to a record $18.8 million, compared to $17.3 million in the same period last year. 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 fourth quarter of $2.3 million, or a loss of $0.03 per diluted share.
The Company's quarterly revenues reflect a 14% gain in DG's ads distribution division, which overcame a 6% revenue decline at DG's StarGuide division. DG's fourth quarter 2002 EBITDA growth and positive net income comparisons reflect revenue improvements, 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. measures and a 38% reduction in interest expense and other due to the Company's application of free cash flow to reduce debt. DG's earnings per share of $0.05 represent the Company's third consecutive quarter of positive EPS.
Commenting on the fourth quarter financial results, Matthew Matthew
one of the twelve disciples. [N.T.: Matthew]
See : Evangelism E. Devine Devine can refer to: People
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. , net income and EPS, all of which reached record levels. Additionally, our success in bringing new clients on board, primarily in the back half of 2002, gives us the foresight (graphics, tool) Foresight - A software product from Nu Thena providing graphical modelling tools for high level system design and simulation. to expect that 2003 will be fantastic both operationally and financially."
Consolidated revenues for the twelve months ended December 31, 2002 were $66.3 million, compared to revenues of $70.7 million for the same period in 2001. On an annual basis, DG's ads distribution division delivered a 5% revenue gain in 2002 and accounted for approximately 80% of the company's total annual revenue. DG's 2002 EBITDA grew 32% to $14.4 million, a company record, compared to EBITDA of $10.9 million in 2001. DG's 2002 net income before cumulative effect of accounting change was $4.7 million, or $0.07 per diluted share, which compares very favorably fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. to the net loss of $9.0 million, or a loss of $0.13 per diluted share in 2001.
Mr. Devine continued, "DG met its financial goals for 2002 as we achieved positive EPS and record EBITDA. Throughout 2002 DG delivered quarterly sequential growth in both revenues and EBITDA which underscores the momentum of our operations. These results are especially impressive given the weak economy and the ad environment which prevailed throughout most of 2002.
"In 2002 DG further advanced its position as the industry standard for digital distribution and media asset management solutions for advertisers and ad agencies. We did so by both expanding our unrivaled digital network which now approaches 1,000 television broadcast facilities and over 7,500 radio stations, and by strengthening our sales and marketing initiatives, which enabled us to attract leading household name brands as clients including Kraft, Burger King, Phillip Phillip is a variant of the name Philip. It may refer to:
"Since January 1, 2002 we have cut our net debt almost in half to $7.5 million. With our expectations for continued free cash flow growth, we'll be debt free by mid year. Furthermore, anticipated revenue gains and operating margin Operating Margin
A ratio used to measure a company's pricing strategy and operating efficiency.
Calculated by: improvements as well as lower interest expense will both strengthen our balance sheet and should drive further gains in our quarterly bottom line results throughout 2003."
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 almost 1,000 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 fourth quarter 2002 conference call will be broadcast live on the Internet at 11:00 a.m. EST EST electroshock therapy.
electroshock therapy on February 14, 2003. 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 or http://www.vcall.com/EventPage.asp?ID=83171. 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 Ended Twelve Months Ended December 31, December 31, 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Revenues $ 18,837 $ 17,262 $ 66,294 $ 70,700 Operating expenses, excluding depreciation & amortization 13,294 14,714 51,916 59,819 ---------- ---------- ---------- ---------- EBITDA 5,543 2,548 14,378 10,881 Depreciation & amortization 2,042 4,326 7,390 17,065 Restructuring charge - - 771 791 ---------- ---------- ---------- ---------- Operating income (loss) 3,501 (1,778) 6,217 (6,975) Interest expense and other, net 305 495 1,520 2,054 ---------- ---------- ---------- ---------- Net income (loss) before cumulative effect of change in accounting principle 3,196 (2,273) 4,697 (9,029) Cumulative effect of change in accounting principle - - 131,291 - ---------- ---------- ---------- ---------- Net income (loss) $ 3,196 $ (2,273) $(126,594) $ (9,029) ========== ========== ========== ========== Basic and diluted income (loss) per common share before cumulative effect of change in accounting principle: $ 0.05 $ (0.03) $ 0.07 $ (0.13) ========== ========== ========== ========== Basic and diluted net income (loss) per common share $ 0.05 $ (0.03) $ (1.79) $ (0.13) ========== ========== ========== ========== Basic weighted average common shares outstanding 70,728 70,778 70,718 70,443 ========== ========== ========== ========== Diluted weighted average common shares outstanding 70,794 70,778 70,807 70,443 ========== ========== ========== ==========