Global Traffic Network, Inc. Reports Fiscal Fourth Quarter and Year-End 2006 Operating Results.Fiscal Fourth Quarter Revenue Increases 47% over Fiscal Fourth Quarter 2005 Full-Year Revenue Increases 27% over Fiscal 2005 NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Global Traffic Network, Inc. (Nasdaq: GNET GNET Global Network of Environment and Technology GNET General Information Network GNET Gigabit Network ), a leading provider of custom traffic and news reports to radio and television stations outside the U.S., today announced its fiscal fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2006 results. Revenue for the three month period ended June June: see month. 30, 2006, was $5.6 million compared to $3.8 million in 2005, an increase of 47 percent. The increase is attributable to continued demand for advertising on the Company's radio network (traffic and news) in Australia, as well as television revenue in Australia and radio traffic network revenue in Canada. Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. revenue for the three month period increased 37% in US$ and 41% in Australian dollars Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents . Operating, selling and general and administrative expenses in the fiscal fourth quarter were $6.6 million, an increase of 78 percent over $3.7 million in the fourth quarter of fiscal 2005. The majority of the increase pertains to the Company's radio traffic network in Canada and news radio network in Australia, both of which had not commenced broadcasting during the previous year fiscal fourth quarter. Net loss for the three month period ended June 30, 2006, was ($1.2) million, which was primarily due to losses associated with the Company's continued expansion efforts in Canada. The Company's operations in Australia turned a profit of $0.3 million for the three month period. Twelve-Month Results For the twelve months ended June 30, 2006, revenue was $19.5 million, which represents a 27 percent increase over revenues of $15.4 million for fiscal year 2005. Australia revenue for the twelve month period increased 24% in US$ and 25% in Australia dollars. Operating, selling and general and administrative expenses for the year were $21.7 million, an increase of 68 percent over $12.9 million in the prior year. The increase in expenses was primarily related to the roll-out of the Company's radio news reporting services in Australia and the introduction of its traffic reporting A traffic report is an element of a radio program or TV news broadcast that informs listeners about general traffic conditions, locations and severity of traffic accidents, road construction detours/slowdowns, etc., on roadways within the broadcast area. services in Canada. Net loss for year ended June 30, 2006, was ($3.0) million compared to net income of $1.4 million in the in 2005. This loss was primarily due to losses from the Company's introduction of radio traffic reporting services in Canada. The Company's Australia operations turned a profit for the year despite $3.6 million of additional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with the introduction of the radio news network. "Our fourth quarter and full-year results reflect continued strong revenue growth in our Australian business, both from our long established radio traffic reporting services, as well as our new radio news reporting and expanded television products. We have also made significant revenue progress in our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. markets, even though we did not commence operations in our last initial market until during the fourth quarter," said William L. Yde III, Chairman, Chief Executive Officer and President of Global Traffic Network, Inc. "In addition to the strong revenue growth we achieved throughout the year, we made important strategic progress, establishing the foundation for continued growth and expansion of our Australian and Canadian operations going forward." Mr. Yde added, "During the year, we continued to leverage our fixed infrastructure in order to expand our service offerings and provide added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
"In addition, we are pleased to have successfully established ourselves in the Canadian market, having launched service in our seventh metro market, Edmonton, early in the fourth quarter. With the infrastructure in place in seven of the largest metropolitan areas in Canada, we now have the ability to aggressively market our services to additional radio stations and continue to build our Canadian advertising inventory. The response we have seen thus far in Canada is encouraging. We believe there is great potential for our services in the region, and that we are well positioned to become a market leader." Mr. Yde concluded, "Looking ahead, we will continue working to build our business around the solid platform we have developed, expanding our presence in both Australia and Canada and furthering our reputation as a provider of high quality information services See Information Systems. to radio and television stations in these markets. We are confident in our ability to grow our customer base, increase revenues and maximize shareholder value." Conference Call Global Traffic Network will host a conference call at 8:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on September 27, 2006, to discuss its fiscal fourth quarter and year-end results, as well as other relevant matters. To listen to the call, dial 800-473-1292 (domestic), or 973-409-9262 (international). The call will also be available live on the 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 at www.globaltrafficnetwork.com and www.kcsa.com. About Global Traffic Network Global Traffic Network, Inc. (Nasdaq: GNET) is a leading provider of custom traffic and news reports to radio and television stations outside the U.S. The Company operates the largest traffic and news network in Australia, and operates seven traffic networks in Canada. In exchange for providing custom traffic and news reports, television and radio stations provide Global Traffic Network with commercial airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. inventory that the Company sells to advertisers. As a result, radio and television stations incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. no out-of -pocket costs when contracting to use Global Traffic Network's services. For more information, visit the Company's website at www.GlobalTrafficNetwork.com This press release contains statements that constitute 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. . These statements reflect our current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the heading "Risk Factors" and elsewhere in our prospectus that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements anticipated or implied by these forward-looking statements. These statements can be recognized by the use of words such as "may," "will," "intend," " should," "could," "can," "would," "expect," "believe," "estimate," " predict," "potential," "plan," "is designed to," "target" or the negative of these terms, and similar expressions. We do not undertake to revise any forward-looking statements to reflect future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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