Global Traffic Network Revenue, Income Rise In Fiscal Q4
September 16, 2010 at 4:24 AM (PT)
GLOBAL TRAFFIC NETWORK fiscal fourth-quarter revenue rose 29% to $23.2 million, with revenue from the company's Australian and Canadian operations up 39% and 67%, respectively, aided by currency exchange rates but also strong in the local currency as well (up 20% and 42%, respectively). Net income rose from a loss of $1 million to a gain of $0.4 million.
Chairman/CEO/Pres. WILLIAM L. YDE III said, "Once again we have posted strong operating results as we have continued the momentum that began earlier in the fiscal year. Both AUSTRALIA and CANADA sales were significantly higher than the year ago quarter in both U.S. dollars and the local currencies with Australian revenue increasing 20% and Canadian revenue increasing 42% in local currencies. This is our second consecutive quarter of strong growth in CANADA and we are convinced we are on the right path and expect to continue to show significant improvement in CANADA's financial results. In addition, currency exchange rates continued to have a positive impact on our results and based on the exchange rates to date appear poised to be a benefit in the first quarter of fiscal 2011. To put the Company's revenue growth in perspective, total revenue for the Company in fiscal 2005 was slightly over $15 million. Our fiscal 2010 revenue of $93 million represents an increase of more than our total revenue in fiscal 2005 every year for five consecutive years. Even more impressive is that most of the growth was accomplished organically.
"Our strong revenue growth resulted in record Adjusted Operating Income growth for the quarter. Adjusted Operating Income increased from $0.5 million for the quarter ended JUNE 30th, 2009 to $2.4 million for the quarter ended JUNE 30th, 2010. We were pleased that our consolidated U.K. operations achieved positive Adjusted Operating Income on an annual basis for the first time, generating $1.1 million of for the year ended JUNE 30th, 2010. This achievement can be mainly attributed to the successful integration of our acquisition of radio traffic and entertainment news operations that we purchased on MARCH 1st of last year. For the current quarter our company wide revenue to date is pacing well ahead of the previous year fiscal first quarter and we anticipate a significant increase in Adjusted Operating Income for this quarter as well.
"We continue to invest in our company during good and bad economic times. We believe this commitment will ensure the long term success of our Company. We are able to take advantage of these opportunities regardless of the economic climate because of our strong balance sheet that has no debt and over $1 per share in cash. These investments are now starting to pay off as demonstrated by our recent vigorous growth. Looking to the future, 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."