DGIT - Sector: Services---Industry: Business Services

[setravis]

Profile:  

 
DG FastChannel, Inc.
750 West John Carpenter Freeway
Suite 700
Irving, TX 75039
United States - Map
Phone: 972-581-2000
Fax: 972-581-2001
Web Site: http://www.dgfastchannel.com

DETAILS  
Index Membership: N/A
Sector: Services
Industry: Business Services
Full Time Employees: 770


BUSINESS SUMMARY  
DG FastChannel, Inc. provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets. The company provides advertising distribution services, such as electronic and physical distribution of broadcast advertising content to broadcast stations. It also offers Unicast Advertising Platform, an online advertising campaign management and deployment product that permits publishers, advertisers, and their agencies to manage the process of deploying online advertising campaigns. In addition, the company offers online creative research services through SourceEcreative, an online database of content and credits of the United States' television commercials for the advertising and TV commercial production industry. Further, it provides professional services for creating content and implementing visualization solutions; and media production and duplication services, including storage of client masters or storyboards, editing of materials, tagging content, dubbing, video duplication, and copying of media onto CD, DVD, or tape. Additionally, the company offers media asset management services enabling automatic archiving of trafficked spots, online search, send-for-review and review-and-approval capabilities, automated digital storyboarding, and streaming previews; and broadcast business intelligence products. As of December 31, 2008, it operated 3 digital networks, which link approximately 5,000 advertisers, advertising agencies, and content owners with 21,000 radio, television, cable, network, and print publishing destinations; and 5,000 online publishers electronically in the United States, Canada, and Europe. The company was formerly known as Digital Generation Systems, Inc. and changed its name to DG FastChannel, Inc. in 2006. FastChannel, Inc. was founded in 1991 and is headquartered in Irving, Texas.

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Business Overview

BRIEF: For the fiscal year ended 31 December 2008, DG FastChannel Inc.'s revenues rose 61% to $157.1M. Net income from cont. ops. rose 39% to $15.1M. Revenues reflect higher revenues from Video & Audio Content Distribution segment. Net income was partially offset by higher cost of revenues, an increase in sales & marketing expenses, a rise in research & development expenses, higher interest expenses and an increase in provision for income taxes. http://www.dgfastchannel.com/

Last Split Factor: (new per old) 1:10
Last Split Date: 30-May-06
Shares Outstanding: 20.88M
Float: 15.62M

DG FastChannel Inc (NasdaqGM: DGIT) is on a roll as estimates continue to rise and shares have broken out.

Estimates Keep Rising...

Over the past 2 months the full-year estimates for both 2009 and 2010 have been climbing. The consensus for this year is now 95 cents, up from 73 cents. Estimates for next year are averaging $1.48, up from $1.09.
While these figures do represent an 8% decline this year, the company is projected to grow 56% in 2010. That would be a 2-year rate of 44%.

Nice Valuations...

Shares are currently exchanging hands at a discount to the peer group. The P/E ratio is 17 times earnings, about 7 times less


The Chart...

DGIT has made a nice breakout. Take a look at the charts below.
Below are the 6 month...9 month ...and 4 year charts.

[setravis]

Feb 19, 2009...
DG FastChannel Inc (DGIT) has just announced a "breakout" quarter and estimates have popped. Shares are also showing upward momentum for the media company.

Revenues Up 68%...

On Feb 12 DG FastChannel reported fourth-quarter results which included revenue of $52 million. Revenue for the quarter was up 68% year-over-year compared to $31 million last year.

Net income was $5.5 million, up from $3.7 million in 2007. The figure yielded earnings per share of 26 cents, up from 21 cents in the same period last year.

Company Description...

DG FastChannel provides innovative, technology-based solutions to help advertisers and agencies work faster, smarter and more competitively. DG FastChannel delivers the standard in digital media services to the advertising, broadcast and publishing industries.

The Company utilizes satellite and Internet transmission technologies and has deployed a suite of digital media intelligence and asset management tools designed specifically for the advertising industry, including creative and production resources, broadcast verification, and digital asset management.

A Breakout Year...

CEO Scott Ginsburg said, "2008 was a breakout year of growth and development for DG FastChannel. The Company's impressive results were driven by our primary growth engine, the delivery of high definition (HD) content."

After citing key acquisitions he continued, "robust growth in key benchmarks such as revenue, adjusted EBITDA, and net income are all the more exceptional given the current economic environment and demonstrate the successful execution of our long-term strategic plan."

Estimates Are Climbing...

Since the announcement earnings estimates for full-year 2009 have rose to 79 cents from 73 cents. The consensus for 2010 jumped to $1.28 from $1.09. While this year's number does call for a 23% decline, next year's earnings would be a 62% growth.

The Surprises Keep Coming...

The latest earnings announcement was a double the 13 cents expected by Wall Street, making it the eighth surprise in the past 2 years. The last 4 surprises have averaged more than 52%.

[setravis]

Has cleared a 20 buy point on a
Cup with Handle bas within a larger pattern.
The firm's annual earnings sped up over the last two years,
from 52 cents a share to $1.24 to $1.80
Cash Flow pretax margins and sales growth are all strong; they all
improved during the same period. Return on equity, though is lagging.
EPS and sales growth increased over the last three quarters, and Q4
EPS trounced analysts' estimates.
But Wall Street sees a 71% drop off in Q1 EPS and a 47%decline in 2009 profit.


52wk Range: 11.66 - 24.40
Volume: 423,400
Avg Vol (3m): 264,278
Market Cap: 471.43M
P/E (ttm): 28.28
EPS (ttm): 0.79
Div & Yield: N/A (N/A)

Technicals
Last Price Quote is:
13.14%above 13-day MA
26.34%above 50-day MA
RS Rating: 74 

Fundamentals
Key Data:
Market Cap (M): $438.08 
P/E Ratio: 26.04 
PEG Ratio: 0.89434 
Next Earnings: 05/07/2009
Last Analyst Rating: Strong Buy

And let us not forget the "Golden Cross" !!

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updated chart scene...

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Oustanding...
I don't understand why this stock does not get stronger trading volume.
Great bounce off the 200-day MA.......

52wk Range: 11.66 - 24.44
Volume: 883,188
Avg Vol (3m): 356,037
Market Cap: 449.18M
P/E (ttm): 31.57
EPS (ttm): 0.68
Div & Yield: N/A (N/A)

Technicals
Close Above the 13-day MA
Percentage Gainer

Last Price Quote is:
8.03%above 13-day MA
10.71%above 50-day MA
RS Rating: 22 

Fundamentals
Key Data:
Market Cap (M): $413.26 
P/E Ratio: 28.46 
PEG Ratio: 0.849057 
Next Earnings: 08/06/2009
Last Analyst Rating: Strong Buy

Look at the performance since being added to my watch list. 

[setravis]

I believe this company is ready to turn the corner.
Pulled back into buy range.
Target $26-$30...MACD bottoming, Stochastic rising.


52wk Range: 11.66 - 24.44
Volume: 210,564
Avg Vol (3m): 381,138
Market Cap: 410.53M
P/E (ttm): 28.85
EPS (ttm): 0.68
Div & Yield: N/A (N/A)

Technicals
Close Above the 50-day MA
Close Above the 13-day MA

Last Price Quote is:
4.21%above 13-day MA
0.90%above 50-day MA
RS Rating: 12 

Fundamentals
Key Data:
Market Cap (M): $387.56 
P/E Ratio: 26.69 
PEG Ratio: 0.818868 
Next Earnings: 08/06/2009
Last Analyst Rating: Strong Buy

[setravis]

DALLAS, Nov 05, 2009 (BUSINESS WIRE) -- --- Third Quarter Adjusted EBITDA Rises 28% to $21.0 Million --

--- Third Quarter Diluted Earnings Increases 83% to $0.22 per share --


52wk Range: 11.66 - 27.49
Volume: 322,361
Avg Vol (3m): 300,983

Technicals
Last Price Quote is:
5.29%above 13-day MA
17.59%above 50-day MA
RS Rating: 28 

Fundamentals
Key Data:
Market Cap (M): $623.47 
P/E Ratio: 41.81 
PEG Ratio: 1.62069 
Next Earnings: 02/11/2010
Last Analyst Rating: Strong Buy

[setravis]

DALLAS, Nov 05, 2009 (BUSINESS WIRE) -- --- Third Quarter Adjusted EBITDA Rises 28% to $21.0 Million --

--- Third Quarter Diluted Earnings Increases 83% to $0.22 per share --

DG FastChannel(R), Inc. (DGIT, Trade ), a leading provider of digital media services to the advertising, entertainment and broadcast industries, today reported record third quarter financial results. Consolidated revenue for the third quarter 2009 increased 17% to $48.3 million compared to $41.4 million in the same period of 2008. Third quarter 2009 revenue from the delivery of high definition (HD) advertising content increased 68% to $15.6 million compared to $9.3 million in the same period of 2008.

Scott K. Ginsburg, Chairman and CEO of DG FastChannel commented, "The Company's impressive third quarter performance highlights early success from the adoption of our HD distribution platform. During the third quarter, over 44% of DG FastChannel's HD business was delivered electronically, and that percentage should increase during the next few periods as more advertisers and media outlets adopt HD and file-based workflows. As a result, the Company's HD revenues are expected to improve."

"DG FastChannel's expansion into rich media has provided important access to the online media business, advertising's fastest growing segment. The Company's Unicast division is actively leveraging its core competencies to more fully penetrate both the publisher and agency sides of the business. This reinforces the Company's overriding goal of building a bridge between its traditional media business and the online media business. As Unicast further aligns its product mix with the Company's video advertising division, potential growth synergies look very encouraging."

Adjusted EBITDA was $21.0 million compared to $16.5 million in the comparable period of 2008, a gain of 28%. Third quarter 2009 net income was $5.4 million, or $0.22 per diluted share, compared with net income of $2.3 million, or $0.12 per diluted share in 2008. Third quarter 2009 normalized net income was $14.6 million, or $0.60 per diluted normalized net income per share, compared to normalized net income of $7.1 million, or $0.38 per diluted normalized net income per share in 2008. As of September 30, 2009, DG FastChannel had $26.8 million in cash and $107.8 million of debt, or net debt of $81.0 million. The terms "adjusted EBITDA" and "normalized net income" are defined below.

"DG FastChannel reported its highest ever adjusted EBITDA margin of 44% during the third quarter, and the Company's goals of improving revenues, operating margins, profitability and cash flow remain key objectives. The Company's financial condition and capital structure have been strengthened by reducing outstanding debt," concluded Mr. Ginsburg.

Third Quarter 2009 Financial Results Webcast

The Company's third quarter conference call will be broadcast live on the Internet at 11:00 a.m. ET on Thursday, November 5, 2009. The webcast is open to the general public and all interested parties may access the live webcast on the Internet at the Company's Web site at www.dgfastchannel.com . Please allow 15 minutes to register and download or install any necessary software.

Non-GAAP Reconciliation, Adjusted EBITDA, Normalized Net Income and Diluted Shares Used in Normalized Net Income Per Share Calculation Definitions

Adjusted EBITDA is defined as earnings before interest, taxes, unrealized investment gains and losses, stock-based compensation, and depreciation and amortization. Although adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles (GAAP), the Company believes this Non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. However, investors should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP. In addition, because adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of the adjusted EBITDA figures to GAAP net income is included herein.

Normalized net income is defined as net income before amortization of intangible assets, stock-based compensation expense, unrealized investment gains and losses, and deferred tax expense (mostly related to the utilization of tax net operating loss carryforwards/credits), and release of the deferred tax asset valuation allowance. DG FastChannel considers normalized net income to be another important indicator of the overall performance of the Company because it eliminates the effects of events that are either not part of the Company's core operations or are non-cash.

Diluted shares used in normalized net income per share calculations is defined as diluted common shares outstanding used in GAAP net income per share calculations, excluding the effect of Accounting for Stock-Based Compensation under the treasury stock method. DG FastChannel considers normalized net income and diluted normalized net income per share to be additional important indicators of the overall performance of the Company because they eliminate the effect of non-cash items.

Adjusted EBITDA and normalized net income should be considered in addition to, not as a substitute for, the Company's operating income and net income, as well as other measures of financial performance reported in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial measures to the comparable GAAP measures.

Recent Acquisitions

During 2008, the Company completed the acquisitions of the Vyvx advertising services business and Enliven Marketing Technologies Corporation as of June 5, 2008 and October 2, 2008, respectively. Accordingly, the results of operations for each acquired entity have been included in DG FastChannel's results since the respective acquisition dates.

About DG FastChannel

DG FastChannel provides innovative, technology-based solutions to help advertisers and agencies work faster, smarter and more competitively. DG FastChannel delivers the standard in digital media services to the advertising, broadcast and publishing industries. Through its Unicast and Springbox operating units, DG FastChannel is a leading Internet marketing technology company offering online marketing and advertising solutions through a powerful combination of proprietary visualization technology, and a premium rich media advertising platform for the creation, delivery and reporting of premium rich media.

The Company utilizes satellite and Internet transmission technologies and has deployed a suite of digital media intelligence and asset management tools designed specifically for the advertising industry, including creative and production resources, and digital asset management. The Company has an online media distribution network used by more than 5,000 advertisers and agencies, and over 21,000 online radio, television, cable, network and print publishing destinations. For more information visit www.dgfastchannel.com .

Forward-Looking Statements

This release contains forward-looking statements relating to the Company, including the expected growth of destinations capable of receiving HD-enabled advertising content and making progress toward our goals of improving revenues, operating margins, profitability and cash flows. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to DG FastChannel's business are set forth in the Company's filings with the Securities and Exchange Commission. DG FastChannel assumes no obligation to publicly update or revise any forward-looking statements.

SOURCE: DG FastChannel(R), Inc.


Omar Choucair
Chief Financial Officer
DG FastChannel, Inc.
972/581-2000

[setravis]

The run up...
Looking at the 4 year chart
The Cup with Handle (continuation) Pattern leads to another boast up!!

[setravis]

DALLAS, Feb 04, 2010 (BUSINESS WIRE) -- DG FastChannel(R), Inc. (DGIT) announced today that it will report its fourth quarter and full year 2009 financial results before the market opens on Tuesday, February 16, 2010. The Company will host a conference call and webcast at 11:00 a.m. ET that morning to review the results.

Scott Ginsburg, Chairman & CEO, Omar Choucair, CFO and Neil Nguyen, President & Chief Operating Officer will recap fourth quarter and full year financial results and accomplishments. To access the conference call by telephone, interested parties may dial 800/901-5226 and enter passcode 68560777. Please call five minutes in advance to ensure that you are connected. Participants can access the webcast through the Company's website at www.dgfastchannel.com . For the webcast, please allow 15 minutes to register and download and install any necessary software. Questions and answers will be taken only from participants on the conference call. Following the call's completion, a replay will also be available for 30 days on the Internet from the Company's website.

About DG FastChannel

DG FastChannel provides innovative, technology-based solutions to help advertisers and agencies work faster, smarter and more competitively. DG FastChannel delivers the standard in digital media services to the advertising, broadcast and publishing industries. Through its Unicast and Springbox operating units, DG FastChannel is a leading Internet marketing technology company offering online marketing and advertising solutions through a powerful combination of proprietary visualization technology, and a premium rich media advertising platform for the creation, delivery and reporting of premium rich media.

The Company utilizes satellite and Internet transmission technologies and has deployed a suite of digital media intelligence and asset management tools designed specifically for the advertising industry, including creative and production resources, and digital asset management. The Company has an online media distribution network used by more than 5,000 advertisers and agencies, and over 21,000 online radio, television, cable, network and print publishing destinations. For more information visit www.dgfastchannel.com .

SOURCE: DG FastChannel(R), Inc.


DG FastChannel, Inc.
Omar Choucair
Chief Financial Officer
972/581-2000

[setravis]

Drink from the Cup of profits 


Below the 4 year chart...

[setravis]

Nice... 

Below the 1 year chart.......

[setravis]

Monster run !!!  

[setravis]

DGIT...Strong Uptrend !