DALLAS, TX -- (Marketwire) -- 02/19/13 -- DG® (NASDAQ: DGIT)
•Fiscal 2012 Revenues Increase 19% to $386.6 Million Primarily Driven by Strategic Acquisitions in the Online Segment •DG Online Segment Surpasses Over One Trillion Impressions during 2012
DG® (NASDAQ: DGIT), the world's leading ad management and distribution platform, today reported financial results for the fourth quarter and full year 2012.
Consolidated revenue for the three months ended December 31, 2012 decreased 4% to $103.6 million, compared to $108.3 million in the same period of 2011. DG's fourth quarter loss from continuing operations (including a goodwill impairment charge of $11.4 million) was $20.8 million, or $0.75 per diluted share, compared to income from continuing operations of $5.8 million, or $0.21 per diluted share, in the year earlier period. Fourth quarter Adjusted EBITDA was $38.1 million, compared to $43.1 million in the fourth quarter of 2011.
For the twelve months ended December 31, 2012, consolidated revenue was $386.6 million compared to $324.3 million in 2011, an increase of 19%. The 2012 loss from continuing operations (including a goodwill impairment charge of $219.6 million) was $238.8 million, or $8.69 per diluted share, compared to income from continuing operations of $26.5 million, or $0.95 per diluted share in 2011. Adjusted EBITDA for 2012 decreased 7% to $125.7 million compared to $134.6 million for 2011.
"We believe that the steps we have taken over the past year position DG to meet the increasing demand from advertisers to manage video-centric campaigns across TV, online and mobile screens," said Neil Nguyen, CEO and President of Digital Generation, Inc. "We saw positive results in both our online video and data driven products. We will continue to leverage DG's innovation and strength in developing new products to address the evolving advertising industry."
In discussing the company's vision, Mr. Nguyen added, "Online video continues to be at the core of DG's growth strategy, with online video advertising expected to reach over $8 Billion by 2016. While advertising may appear to fragment across screens and new technology on the surface, we believe it will in fact integrate through the consistent use of data and technology we are developing. This will enable advertisers to reach their customers through highly targeted campaigns across screens and across available inventory. I believe there is no company better positioned to drive this level of convergence than DG."
Fourth quarter financial highlights:
•TV segment revenues of $62.4 million included high-definition (HD) revenues of $37.4 million, with $3.5 million related to political campaign advertising.•HD prices declined by approximately 25% from prior year levels •HD penetration rates climbed to 31% in 2012 from 18% in 2011 •The fourth quarter decline in TV revenues was primarily attributable to a $6.8 million decline in revenues from studios as they continue to shift advertising revenues from smaller TV markets to national networks and online media.
•Fourth quarter Adjusted EBITDA margins were 37% on a consolidated basis as compared to 40% in the fourth quarter of 2011.
•Fourth quarter G&A expenses included $600,000 of litigation costs, the majority of which related to litigation that resulted in a favorable arbitration award of approximately $3.5 million that has not yet been recorded.
•Fourth quarter operating expenses included a non-cash goodwill write-down of $11.4 million relating to the online business segment and also included costs of $3.0 million associated with Special Committee, proxy matters, merger and integration efforts.
•At December 31, 2012 DG had $84.8 million of cash and short-term investments and $453.9 million outstanding under its long-term credit facility.
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