We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Digital Generation, Inc. (MM) | NASDAQ:DGIT | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 12.09 | 0 | 01:00:00 |
DG® (NASDAQ: DGIT), the world's leading multiscreen ad management company, today reported financial results for the second quarter of 2013.
Consolidated revenues for the three months ended June 30, 2013 were unchanged at $96.3 million compared to the same period of 2012. DG's second quarter income from continuing operations was $2.6 million, or $0.09 per diluted share, compared to income from continuing operations of $0.5 million, or $0.02 per diluted share in the prior year period. Second quarter adjusted EBITDA was $31.1 million, compared to $30.4 million reported in the second quarter of 2012.
"We continue to make solid progress in our online business as demand builds for our digital campaign management platform," said Neil Nguyen, CEO of DG. "The 19% increase in our online business this quarter reflects customers' growing use of video, data driven campaign optimization and greater campaign insights through our new analytics tools. It is clear to me that DG's ongoing development is fully aligned with our customers in helping them reach, optimize, analyze and deliver their online campaigns around the globe."
Second quarter highlights include:
Guidance
For 2013, the Company continues to expect the following:
Second Quarter 2013 Financial Results Webcast
The Company will host a conference call and webcast at 8:30 ET on August 8, 2013. Participants can access the webcast at www.DGIT.com. For the webcast, please allow 15 minutes to register and download any necessary software. Questions and answers will be taken only from participants on the conference call. Following the call's completion, a replay will also be available for 30 days on the Company's website.
Acquisitions / Discontinued Operations
The Company has completed two acquisitions that have impacted the comparability of the operating results presented. The results of operations for each of the following entities have been included in the Company's results since the acquisition date.
We sold the net assets of our Springbox unit effective June 1, 2012 for estimated proceeds of $0.9 million, resulting in an after tax loss of $0.6 million. Results of our Springbox unit have been included in discontinued operations for 2012.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), the Company has historically provided additional financial measures that are not prepared in accordance with GAAP (non-GAAP). We believe that the inclusion of Adjusted EBITDA and Segment Adjusted EBITDA before corporate overhead as non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our past performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts. Our management uses Adjusted EBITDA and Segment Adjusted EBITDA before corporate overhead as non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors.
We use Adjusted EBITDA and Segment Adjusted EBITDA before corporate overhead to measure the operating performance of our business. These measures are used by management in its financial and operational decision-making. There are limitations associated with reliance on any non-GAAP financial measures because they are specific to our operations and financial performance, which makes comparisons with other companies' financial results more challenging. By providing both GAAP and non-GAAP financial measures, we believe that investors are able to compare our GAAP results to those of other companies while also gaining a better understanding of our operating performance as evaluated by management.
The Company considers Adjusted EBITDA to be an important indicator of the overall performance of the Company because it eliminates the effects of events that are non-cash, or are not expected to recur as they are not part of our ongoing operations.
The Company defines "Adjusted EBITDA" as income (loss) from operations, before depreciation and amortization, share-based compensation, acquisition, integration and other expenses, and restructuring / impairment charges and benefits. The Company considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance and a good measure of the Company's historical operating trends.
Adjusted EBITDA eliminates items that are either not part of our core operations, such as acquisition, integration and other expenses or do not require a cash outlay, such as share-based compensation and impairment charges. Adjusted EBITDA also excludes depreciation and amortization expense, which is based on the Company's estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historical costs, and may not be indicative of current or future capital expenditures.
Segment Adjusted EBITDA before corporate overhead represents Adjusted EBITDA before corporate overhead on a segment by segment basis.
Adjusted EBITDA and Segment Adjusted EBITDA before corporate overhead should be considered in addition to, not as a substitute for, the Company's operating income, as well as other measures of financial performance reported in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measure and reconciling the non-GAAP financial measures to the comparable GAAP measure.
About DG
DG (NASDAQ: DGIT) is the leading global multiscreen advertising management and distribution platform, fueling campaign management across TV, online, mobile and beyond. Through a combination of technology and services, DG empowers brands and advertisers to work faster, smarter and more competitively. Boasting the world's largest hybrid satellite and Internet network for broadcast video delivery, the Company's unparalleled campaign management encompasses multiscreen ad delivery, cross-channel research and analytics, and unified asset management. The DG product portfolio consists of two overarching product lines for online and video campaign management: MediaMind and VideoFusion.
With New York as a center of operations, DG is a global company that connects over 14,000 advertisers and 7,400 agencies worldwide with their targeted audiences through an expansive network of over 50,000 media destinations across TV broadcast and digital advertising in about 78 countries, managing approximately ten percent of the world's media assets. For more information, visit http://www.dgit.com.
Forward-Looking Statements
This release contains forward-looking statements relating to the Company. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Such risks and uncertainties include, among other things;
and other risks relating to DG's business which are set forth in the Company's filings with the Securities and Exchange Commission. DG assumes no obligation to publicly update or revise any forward-looking statements.
(Financial Tables Follow)
Digital Generation, Inc. Unaudited Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, ------------------ --------------------- 2013 2012 2013 2012 -------- -------- --------- --------- Revenues $ 96,316 $ 96,336 $ 188,293 $ 189,185 Cost of revenues 33,650 34,839 66,631 67,336 Research and development 5,122 5,713 10,030 11,845 Sales and marketing 17,464 14,704 34,715 28,135 General and administrative 9,020 10,658 17,443 21,882 -------- -------- --------- --------- Operating expenses, excluding depreciation and amortization, share-based compensation and acquisition, integration and other expenses 65,256 65,914 128,819 129,198 -------- -------- --------- --------- Adjusted EBITDA 31,060 30,422 59,474 59,987 Depreciation and amortization 13,731 13,632 28,735 26,861 Share-based compensation 3,207 4,906 6,425 9,377 Acquisition, integration and other expenses 1,025 2,707 3,687 4,177 -------- -------- --------- --------- Operating income 13,097 9,177 20,627 19,572 Other (income) expense, net 97 364 (77) 354 Interest expense 8,435 7,838 17,396 15,931 -------- -------- --------- --------- Interest expense and other, net 8,532 8,202 17,319 16,285 -------- -------- --------- --------- Income before income taxes from continuing operations 4,565 975 3,308 3,287 Provision for income taxes 1,967 457 1,838 1,490 -------- -------- --------- --------- Income from continuing operations 2,598 518 1,470 1,797 Loss from discontinued operations, net of tax -- (789) -- (1,080) -------- -------- --------- --------- Net income (loss) $ 2,598 $ (271) $ 1,470 $ 717 ======== ======== ========= ========= Basic earnings (loss) per share: Continuing operations $ 0.09 $ 0.02 $ 0.05 $ 0.07 Discontinued operations -- (0.03) -- (0.04) -------- -------- --------- --------- Total $ 0.09 $ (0.01) $ 0.05 $ 0.03 ======== ======== ========= ========= Diluted earnings (loss) per share: Continuing operations $ 0.09 $ 0.02 $ 0.05 $ 0.07 Discontinued operations -- (0.03) -- (0.04) -------- -------- --------- --------- Total $ 0.09 $ (0.01) $ 0.05 $ 0.03 ======== ======== ========= ========= Weighted average common shares outstanding: Basic 27,753 27,458 27,711 27,334 Diluted 27,985 27,458 27,984 27,452 Digital Generation, Inc. Unaudited Segment Information (In thousands) Three Months Ended June Three Months Ended June 30, 2013 30, 2012 -------------------------- -------------------------- Consolid- Consolid- Television Online ated Television Online ated -------- -------- -------- -------- -------- -------- Revenues $ 55,049 $ 41,267 $ 96,316 $ 61,601 $ 34,735 $ 96,336 Segment Adjusted EBITDA before corporate overhead 28,088 9,828 37,916 31,261 5,850 37,111 Less corporate overhead (6,856) (6,689) -------- -------- Adjusted EBITDA 31,060 30,422 Less: Depreciation and amortization (13,731) (13,632) Share-based compensation (3,207) (4,906) Acquisition, integration and other (1,025) (2,707) -------- -------- Income from operations $ 13,097 $ 9,177 ======== ======== Six Months Ended June 30, Six Months Ended June 30, 2013 2012 -------------------------- -------------------------- Consolid- Consolid- Television Online ated Television Online ated -------- -------- -------- -------- -------- -------- Revenues $112,957 $ 75,336 $188,293 $123,432 $ 65,753 $189,185 Segment Adjusted EBITDA before corporate overhead 58,021 14,111 72,132 65,453 7,186 72,639 Less corporate overhead (12,658) (12,652) -------- -------- Adjusted EBITDA 59,474 59,987 Less: Depreciation and amortization (28,735) (26,861) Share-based compensation (6,425) (9,377) Acquisition, integration and other (3,687) (4,177) -------- -------- Income from operations $ 20,627 $ 19,572 ======== ======== Digital Generation, Inc. Unaudited Consolidated Statements of Cash Flows (In thousands) Six Months Ended June 30, ----------------------- 2013 2012 ---------- ---------- Cash flows from operating activities: Net income $ 1,470 $ 717 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 13,724 12,156 Amortization of intangibles 15,011 14,705 Deferred income taxes 2,279 (2,806) Provision for accounts receivable losses 1,187 1,503 Share-based compensation 6,425 9,377 Loss on sale of Springbox unit -- 1,000 Other 746 423 Changes in operating assets and liabilities: Accounts receivable 7,849 6,243 Other assets 3,967 2,995 Accounts payable and other liabilities (2,230) (15,435) Deferred revenue 251 (579) ---------- ---------- Net cash provided by operating activities 50,679 30,299 ---------- ---------- Cash flows from investing activities: Purchases of property and equipment (5,697) (13,815) Capitalized costs of developing software (7,526) (6,274) Acquisitions, net of cash acquired -- (8,594) Long-term investment -- (1,017) Proceeds from sale of short-term investments 314 10,390 Other 1,117 1,037 ---------- ---------- Net cash used in investing activities (11,792) (18,273) ---------- ---------- Cash flows from financing activities: Proceeds from issuance of common stock, net of costs 585 127 Payment of debt amendment costs (2,635) -- Repayments of capital leases and other (3,778) (266) Repayments of long-term debt (59,800) (27,450) ---------- ---------- Net cash used in financing activities (65,628) (27,589) ---------- ---------- Effect of exchange rate changes on cash and cash equivalents (1,778) 16 ---------- ---------- Net decrease in cash and cash equivalents (28,519) (15,547) Cash and cash equivalents at beginning of year 84,520 72,575 ---------- ---------- Cash and cash equivalents at end of period $ 56,001 $ 57,028 ========== ========== Supplemental disclosures of cash flow information: Cash paid for interest $ 14,231 $ 14,195 Cash (received) paid for income taxes $ (143) $ (1,112) Non-cash component of purchase price to acquire a business $ -- $ 5,645 Landlord lease incentives $ -- $ 5,599 Digital Generation, Inc. Condensed Consolidated Balance Sheets (In thousands) June 30, December 31, 2013 2012 ------------- ------------- (unaudited) Cash and short-term investments $ 56,001 $ 84,834 Accounts receivable, net 88,229 97,583 Property and equipment, net 64,894 66,169 Goodwill 368,148 369,137 Intangibles, net 164,525 180,156 Other 37,635 39,332 ------------- ------------- Total assets $ 779,432 $ 837,211 ============= ============= Accounts payable and accrued liabilities $ 37,864 $ 46,085 Deferred revenue 1,864 1,627 Deferred income taxes 30,445 28,065 Debt 394,743 453,918 Other 18,565 16,322 ------------- ------------- Total liabilities 483,481 546,017 Total stockholders' equity 295,951 291,194 ------------- ------------- Total liabilities and stockholders' equity $ 779,432 $ 837,211 ============= =============
For more information contact: JoAnn Horne Market Street Partners 415/445-3233
1 Year Digital Generation Systems Chart |
1 Month Digital Generation Systems Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions