RRsat Presents 34% Revenue Increase and Operating Margin Expansion in Third Quarter 2008
RRsat Presents 34% Revenue Increase and Operating Margin Expansion in Third Quarter 2008
FY 2009 Revenues Expected To Exceed $100 Million
OMER, Israel, October 30/PRNewswire-FirstCall/ -- RRsat Global Communications Network Ltd. (NASDAQ: RRST), a rapidly growing provider of comprehensive content management and global distribution services to the television and radio broadcasting industries, today announced its financial results for the three-month period ended September 30, 2008.
Third Quarter Highlights (compared to third quarter 2007) - Revenues increased 34%, reaching $20.1 million - Gross Margin totals 32.7%; Operating Margin reaches 19.8% - GAAP net income, $4.0 million; Adjusted net income totals $3.1 million - Operating cash flow $7 million; Cash and marketable securities' $61.9 million at September 30, 2008 - Backlog reached record level of $178.5 million as of September 30, 2008 - Expected to exceed $100 million in revenues in FY 2009 - Board of Directors declared cash dividend of $5 million, or $0.29 per ordinary share
Revenues for the third quarter of 2008 totaled a record $20.1 million, an increase of 34% compared to $15.0 million in the third quarter of 2007.
Backlog of signed agreements, as of September 30, 2008, reached a record $178.5 million, a further increase of $4.5 million from the $174.0 million backlog of signed agreements as of June 30, 2008.
Operating income for the third quarter of 2008 totaled $4.0 million, a 38% increase compared to $3.0 million in the third quarter of 2007.
Adjusted net income for the third quarter of 2008 totaled $3.1 million, compared to $3.2 million in the third quarter of 2007. The decline is primarily the result of an increase in tax expenses in the third quarter of 2008. Adjusted net income per diluted share totaled $0.18, compared to $0.19 in the third quarter of 2007.
Net income on a GAAP basis for the third quarter of 2008 totaled $4.0 million, compared to $3.0 million, in the third quarter of 2007. Net income per diluted share on a GAAP basis was $0.23, compared to $0.17 in the third quarter of 2007.
Adjusted EBITDA for the third quarter of 2008 totaled $5.1 million, an increase of 34% compared to $3.8 million in the third quarter of 2007.
Cash, cash equivalents and marketable securities as of September 30, 2008 were $61.9 million, compared with $56.0 million as at June 30, 2008. During the quarter, the Company generated $7.0 million in operating cash flow.
Dividend Distribution
On October 29, 2008, the Company's Board of Directors declared a cash dividend in the amount of $0.29 per ordinary share, and in the aggregate amount of approximately $5 million. The dividend will be payable on November 24, 2008 to all of the Company's shareholders of record at the end of the trading day on the NASDAQ on November 17, 2008. According to the Israeli tax law, the Company will withhold at source 20% of the dividend amount payable to each shareholder, subject to applicable exemptions. The dividend per share declared for the third quarter of 2008 does not necessarily reflect dividends for future periods, which may change at any time in accordance with the Company's dividend policy. The Company's dividend policy is described in detail in the Company's Annual Report on Form 20-F for the year ended December 31, 2007.
David Rivel, CEO of RRsat commented, "This quarter we showed a strong increase, both year over year and compared to previous quarters this year in our operating profitability, while continuing to generate healthy revenue growth, both year over year and sequentially. This quarter we once again noted the strength of our business model, evident in our strong cash flow, healthy ending cash balance, high revenue visibility, and high profitability. These key factors, primarily our strong backlog and healthy cash balance, are key factors in the current operating environment, offering us visibility well into 2009, as well as the financial resources to continue to identify and take advantages of opportunities as they may arise in the current operating environment. We are increasing once again our 2008 annual revenue guidance range to $78 to $78.5 million, with fourth quarter 2008 revenues expected to be in the range of $21 - $21.5 million. Furthermore, we are introducing our initial 2009 annual revenue expectations of over $100 million."
"On the acquisition front, we expect to soon complete the acquisition of the Bezeq's satellite business, and its strategically located Israeli Emeq Ha'ela teleport, an especially lucrative teleport given the variety of channels it already distributes. We expect this teleport, together with the US-based teleport acquired in the second quarter of 2008, to serve as key growth drivers for the Company. We intend to leverage their location, infrastructure and customer base to further expand our services to new regions while enhancing our offering to these teleports' customers. This, by offering them access to the RRsat global network and full basket of services ranging from both standard and high definition playout services, to global satellite distribution and internet TV, accessible on all continents over a wide variety of mediums, reaching millions of households worldwide." concluded Mr. Rivel.
Conference Call Information
Conference call scheduled later today, October 30, 2008 at 09:00 am ET (06:00 am PT; 01:00 pm UK Time; 03:00 pm Israel Time). On the call, Mr. David Rivel, Founder & CEO and Mr. Gil Efron, CFO will review and discuss the results and will be available to answer investor questions.
To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-866-345-5855 UK Dial-in Number: 0-800-404-8418 Israel Dial-in Number: 03-918-0609 International Dial-in Number: +972-3-918-0609
A replay of the call will be available from the day after the call. A link to the replay will be accessible from RRsat's website at: http://www.rrsat.com. In addition, a telephone replay will be available for two days following the call. To access the telephone replay dial one of the following numbers: 1-888-269-0005 (US) and +972-3-925-5943 (International).
Profile: International Entertainment
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