DG FastChannel® Inc., the nation’s leading provider of digital media services to the advertising industry, with the largest network designed specifically for spot distribution, has reported record financial results for the first quarter ending March 31, 2010.
Consolidated revenue for the first quarter 2010 increased 31% to $54.2 million, compared to $41.4 million for the same quarter in 2009. In addition, first quarter Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 71%, to $24.1 million, compared to $14.1 million for the same quarter in 2009.
First quarter net income was $8.0 million, or $0.32 per diluted share, compared with a net income of $1.6 million, or $0.07 per diluted share, for the same period in 2009.
Much of the growth came from an 80% increase in first quarter revenue from the delivery of HD advertising content, from $10.9 million in 2009 to $19.7 million in 2010.
As of March 31, 2010, the company reported $51.0 million in cash, and $97.1 million in debt, or a net debt of $46.1 million. Subsequent to the end of the quarter, the company completed a public equity offering, raising net proceeds of approximately $108 million. With the proceeds from the equity offering, all outstanding debt was retired.
Chairman and CEO of DG FastChannel, Scott Ginsburg, commented on the strong showing. “We are very pleased with our strong first quarter 2010 performance. Stellar growth in both traditional and online advertising, the continued adoption of the high definition (HD) advertising format, and the advent of a hotly contested year in politics all contributed to our accelerated growth this quarter. DG FastChannel’s first quarter 2010 performance positions the company well this year for what is shaping up to be a robust advertising environment. With the completion of the recent equity offering and the move to a ‘net cash’ position in early April, the company has substantially improved its free cash flow, financial flexibility, and the opportunity to negotiate a larger and enhanced revolving credit facility. As opportunities come along to better serve our customers and add value for our shareholders, we are well prepared.”