DG (Fastchannel) Q1 Results Up Significantly Year-Over-Year, But Down Versus Last Quarter

Posted by Joe Zaller
May 05 2011

HD programming and advertising content delivery service  provider DG (formerly DG Fastchannel) reported that its revenue for the first quarter of 2011 was $64.7m, an increase of 19%  versus last year, but a decrease of 15% versus the previous quarter.

GAAP net income in the first quarter was $12.7m, an increase  of 59% versus the same period last year, but down 13% versus the previous quarter. First quarter non-GAAP net income was $15.5m, an increase of 49% versus last year, but down 28% versus the previous quarter. Adjusted EBITDA was $29.4m, an increase of 22% compared to the same period of 2010, but a decrease of 23% versus the previous quarter.

Revenue from the delivery of HD advertising content during the quarter was $32.45m, an increase of 64% versus the same period a year ago, but down 6% compared to the previous quarter.

Separately, the company announced that it recently completed a $30 million stock repurchase program, and that its board has approved a further stock repurchase program authorizing the company to purchase up to $50 million of its common stock.

DG also said it has secured a new $150m revolving credit facility to fund future expansion strategic growth initiatives, along with general corporate purposes. Lenders included Wells Fargo Bank, N.A., US Bank, Comerica Bank and Fifth Third Bank.

“We are pleased with our first quarter results, which reflect strength across all of our business units,” said Neil Nguyen, President of DG. “The continued migration of advertising content delivery to HD once again positively impacted our financial performance, contributing to our record results for the quarter.”

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Related Content:

Press Release: DG® Reports Record First Quarter 2011 Results

Press Release: DG Announces $50 Million Stock Repurchase Program

More Broadcast Vendor M&A: DG Fastchannel Acquires Canadian Ad Firm MIJO, Second M&A Deal in Six Months

DG Q4 2010 Results: DG Doubles Net Income in 2010 as HD Ad Delivery Revenue Increases 72%

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