Global Traffic Network Second Quarter Revenues Rise
February 9, 2010 at 11:14 AM (PT)
Radio and television custom traffic and news report provider GLOBAL TRAFFIC NETWORK fiscal second quarter revenue jumped 84% year-to-year to $25.6 million, credited to the acquisition of the company's U.K. operation last MARCH 1st, which added $6.1 million to the total. The company's Australian operations rose 49% and Canadian revenue rose 14%, both benefiting from exchange rate fluctuations; measured in local currencies, Australian revenue rose 8% and Canadian revenue gained 1%.
Net income fell from $900,000 to $800,000, with the 2010 figure including $0.7 million of non-cash amortization expense and $0.2 million of non-cash income tax benefit related to the amortization of the intangible assets of the U.K. acquisition.
GLOBAL TRAFFIC NETWORK Chairman/CEO WILLIAM L. YDE III said, "We believe that we have turned a corner this quarter after several difficult quarters related to the global economic environment. Both AUSTRALIA and CANADA sales were higher than the year ago quarter, despite tough comps. During last year's second fiscal quarter, when measured in local currency, Australian revenue was up 27% over the previous year quarter while Canadian revenue was up 46%. To put incremental growth on top of this performance was a monumental achievement. Our U.K. acquisition had another strong quarter in what has been historically its weakest quarter. We believe that these results signify the beginning of improved performance in all our markets. In addition, currency exchange rates, which have had a negative impact on our previous four quarters of reported revenues, had a significant positive impact on our current quarter results and appear poised to be a significant benefit in the fiscal third quarter as well based on the exchange rates to date.
"Our strong revenue growth resulted in record Adjusted Operating Income for the quarter. Adjusted Operating Income increased from $2.1 million to $3.2 million for the quarter ended December 31, 2009, a 52% increase over the previous year. To put this in perspective, the highest quarterly Adjusted Operating Income previously achieved by the Company was $2.1 million. To date, our revenue is pacing ahead of last year's fiscal third quarter in all three markets and we anticipate a significant increase in Adjusted Operating Income for the quarter.
"We believe that the substantial investments we made in the long term success of our Company during the economic downturn, which included adding additional radio affiliates to our network, are now starting to pay off. We were able to take advantage of these opportunities because of our strong balance sheet that has no debt and significant cash balances. We continue to be well positioned in the advertising arena, with no significant direct competitors, an extremely effective product and a seasoned, experienced sales staff."