U.K. Addition Drives Global Traffic Network Q3 Revenues Up 93%
May 10, 2010 at 12:02 PM (PT)
GLOBAL TRAFFIC NETWORK, INC. fiscal third quarter revenue jumped 93% to $24.1 million, with about $4.5 million of the increase from the Company's U.K. radio traffic and entertainment news operations, acquired effective MARCH 1, 2009 and were included for one month in 2009's results. Revenue from Australian and Canadian operations were up 61% and 145%, respectively, aided by favorable currency exchange rate fluctuations but also up in the local currencies (AUSTRALIA rising 19% and CANADA up 108%).
Net income rose from a loss of $1.8 million to a gain of $500,000, with 2010's number including $700,000 of non-cash amortization expense and $100,000 million of non-cash income tax expense related to the amortization of the intangible assets and utilization of net operating losses of the U.K. acquisition.
Chairman, CEO and President WILLIAM L. YDE III said, "This is our second consecutive quarter of strong operating results after the challenging business conditions related to the global economic environment. Both AUSTRALIA and CANADA sales were significantly higher than the year ago quarter and both markets posted their largest gains of the year in local currencies during fiscal third quarter, with Australian revenue increasing 19% and Canadian revenue more than doubling, increasing 108%. After several difficult quarters in CANADA we believe we now have strong momentum and expect to continue to show significant improvement in CANADA's financial results. Our U.K. acquisition had another strong quarter enabling us to achieve positive Adjusted Operating Income for our consolidated UK operations. In addition, currency exchange rates had a positive impact on our current quarter results and appear poised to be a significant benefit in the fiscal fourth quarter as well based on the exchange rates to date.
"Our strong revenue growth resulted in record Adjusted Operating Income growth for the quarter. Adjusted Operating Income increased from an Adjusted Operating Loss of $0.9 million for the quarter ended March 31, 2009 to $2.7 million Adjusted Operating Income for the quarter ended March 31, 2010, an increase of $3.6 million. This performance is more impressive given the third fiscal quarter is historically a seasonally weak quarter. For the current quarter our revenue to date is pacing well ahead of last year's fiscal fourth quarter and we anticipate a significant increase in Adjusted Operating Income for this quarter as well.
"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 over $20 million in cash. 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."