DG FastChannel Reports Record Third Quarter 2009 Results
Thu Nov 5, 2009 7:00am EST
 
- Third Quarter Revenues Increase 17% to $48.3 Million -

- Third Quarter Adjusted EBITDA Rises 28% to $21.0 Million -

- Third Quarter Diluted Earnings Increases 83% to $0.22 per share -

DG FastChannel, Inc. (NASDAQ: DGIT), a leading provider of digital media services to the advertising, entertainment and broadcast industries, today reported record third quarter financial results. Consolidated revenue for the third quarter 2009 increased 17% to $48.3 million compared to $41.4 million in the same period of 2008. Third quarter 2009 revenue from the delivery of high definition (HD) advertising content increased 68% to $15.6 million compared to
$9.3 million in the same period of 2008.

Scott K. Ginsburg, Chairman and CEO of DG FastChannel commented, "The Company`s impressive third quarter performance highlights early success from the adoption of our HD distribution platform. During the third quarter, over 44% of DG FastChannel`s HD business was delivered electronically, and that percentage should increase during the next few periods as more advertisers and media outlets adopt HD and file-based workflows. As a result, the Company`s HD revenues are expected to improve."

"DG FastChannel`s expansion into rich media has provided important access to the online media business, advertising`s fastest growing segment. The Company`s Unicast division is actively leveraging its core competencies to more fully penetrate both the publisher and agency sides of the business. This reinforces the Company`s overriding goal of building a bridge between its traditional media business and the online media business. As Unicast further aligns its product mix with the Company`s video advertising division, potential growth synergies
look very encouraging."

Adjusted EBITDA was $21.0 million compared to $16.5 million in the comparable period of 2008, a gain of 28%. Third quarter 2009 net income was $5.4 million, or $0.22 per diluted share, compared with net income of $2.3 million, or $0.12 per diluted share in 2008. Third quarter 2009 normalized net income was $14.6 million, or $0.60 per diluted normalized net income per share, compared to normalized net income of $7.1 million, or $0.38 per diluted normalized net
income per share in 2008. As of September 30, 2009, DG FastChannel had $26.8 million in cash and $107.8 million of debt, or net debt of $81.0 million. The terms "adjusted EBITDA" and "normalized net income" are defined below.

"DG FastChannel reported its highest ever adjusted EBITDA margin of 44% during the third quarter, and the Company`s goals of improving revenues, operating margins, profitability and cash flow remain key objectives. The Company`s financial condition and capital structure have been strengthened by reducing outstanding debt," concluded Mr. Ginsburg.