Global Traffic Network, Inc. Reports Fiscal Third Quarter 2009 Operating Results

Closes Acquisition of The Unique Broadcasting Company Limited & Becomes the
Leading Radio Traffic Service in United Kingdom
NEW YORK--(Business Wire)--
Global Traffic Network, Inc. (Nasdaq: GNET), a leading provider of custom
traffic and news reports to radio and television stations outside the U.S.,
today announced its results for the fiscal third quarter ended March 31, 2009.

For the quarter ended March 31, 2009, revenue was $12.5 million, an increase of
2.5% from $12.2 million in the third quarter of fiscal 2008. The increase in
quarterly revenue was achieved due to $2.6 million in revenue from the United
Kingdom, which generated no revenue in the year ago period. Included in the UK
revenue was $1.7 million of revenue associated with the first month of
operations of the newly acquired Unique Broadcasting (renamed Global Traffic
Network (UK) Commercial Limited). Both Australia and Canada had lower revenue
than the previous year quarter. Australia revenue was down 18% and Canada
revenue was down 27% from the third fiscal quarter of 2008. Both Canada and
Australia were impacted by unfavorable currency exchange rate fluctuations due
to a strengthening U.S. dollar compared with the local currencies. When measured
in their local currencies, quarterly Australian revenue increased 12% and
Canadian revenue decreased 9% respectively, compared to the prior year quarter.
The Company`s revenue has been negatively impacted in the local currencies by
the current global economic conditions, which have had a significant impact on
the advertising markets in which the Company operates.

Adjusted Operating Loss was $0.9 million for the third fiscal quarter ending
March 31, 2009 compared to $0.6 million Adjusted Operating Income for the third
fiscal quarter of 2008. The Company defines Adjusted Operating Income (Loss) as
operating income (loss) plus depreciation and amortization expense.

Net loss for the third quarter of fiscal 2009 was $1.8 million, compared to net
loss of $0.2 million for the same period a year ago.

For the nine months ended December 31, 2008, revenue was $42.4 million, an
increase of 16% from $36.4 million in the prior nine month period. Year to date
revenue increased in all three geographical markets the Company serves:
Australia, Canada and United Kingdom. When measured in their local currencies,
Australian and Canadian revenue increased 21% and 34%, respectively, compared to
the prior year period. The Company`s UK business posted revenue of $4.8 million,
compared to no revenue for the same period last year. The Company`s revenue was
negatively impacted by unfavorable currency exchange rates as the U.S. dollar
has been stronger in all its markets during the current fiscal year than the
previous fiscal year.

Adjusted Operating Income increased to $3.3 million for nine months ending March
31, 2009 compared to $3.2 million for the nine month period ending March 31,
2008.

Net loss for the nine months ending March 31, 2009 was $38 thousand, compared to
net income of $0.8 million for the same period a year ago.

Commenting on the results, William L. Yde III, Chairman, Chief Executive Officer
and President of Global Traffic Network, said, "While we are disappointed that
revenue was softer in Canada and Australia than we achieved in the previous two
quarters of this fiscal year, the slowdown is not surprising. The current
economic conditions have had a negative impact on the markets in which we
operate, especially with regards to advertising spending. However, we believe
that we are well positioned in the advertising arena, with no significant direct
competitors, an extremely effective product and an experienced, seasoned sales
staff. We fully expect the advertising markets to recover and that we will
resume our historical revenue increases. The impact on our revenue was further
compounded by the significant weakening of the local currencies when compared to
the U.S. dollar. For the quarter, the United Kingdom was a bright spot for us
and we are very pleased by our initial success with our acquisition of Unique,
which provides traffic and entertainment news services to radio stations in the
United Kingdom. Our first month of consolidated operations in the UK was
Adjusted Operating Income positive and we have high expectations for this
subsidiary in the future."

Mr. Yde continued, "We continue to invest in the long term future of our
company. In addition to the Unique acquisition, which transformed us in to the
dominant market leader in the United Kingdom, we have also strengthened our
position in both Canada and Australia. In January 2009, we commenced operations
in the Canadian capital of Ottawa, which is the fourth largest market in Canada
and our eighth Canadian market overall. In addition, we continue to enter into
long term contracts with our affiliates, bringing stability and improved expense
visibility to our business. Since the beginning of the fiscal year, we have
locked up four year agreements with our three largest traffic affiliates in
Australia, a four year agreement with our largest news affiliate and, in January
2009, a two year agreement with our second largest news affiliate in Australia.
In addition, we entered a four year agreement with our largest traffic affiliate
in Canada in January 2009. Our United Kingdom subsidiary now has over 700,000
radio commercials available for sale on an annual basis while providing traffic
reports to 250 radio stations and entertainment news reports to 120 radio
stations."

Mr. Yde concluded, "We have made significant investments in the long term
success of our Company. While there is great uncertainty in the short term
global economic outlook, we believe the investments we have made set the Company
up well for the future. The long term contracts we have entered into bring us
flat costs related to these contracts for their respective lives as well as cost
certainty for a significant portion of our business. Our strong balance sheet,
with virtually no debt and significant cash balances, positions us to operate
successfully during the current economic downturn."

For the Company`s fourth fiscal quarter ending June 30, 2009, revenue reflected
to date in the Company`s internal sales reports is behind the same date for the
previous fiscal year when measured in local currencies. The Company`s operating,
sales and general and administrative expenses were significantly higher in the
third fiscal quarter of 2009 compared to the third fiscal quarter of 2008 when
measured in local currencies. These expenses were higher due to the expansion of
the United Kingdom operations to commence service for the Highways Agency
Traffic Radio project and the operations of the Unique acquisition, increased
start up cost of Mobile Traffic, and increased station costs in Australia and
Canada, among other things. All of these increased costs are expected to be
reflected in the fiscal fourth quarter results as well. In addition, the
Company`s costs will increase due to the inclusion of three months of the Unique
acquisition, when compared to one month in the third fiscal quarter 2009. With
the exception of UK traffic operating expenses, the vast majority of the
Company`s costs are fixed and are not readily reduced in the short or
intermediate term. Should revenue from Canada and Australia end fiscal fourth
quarter 2009 lower than fiscal fourth quarter 2008 in local currencies, this
lower revenue combined with higher costs will have a significant negative impact
on Adjusted Operating Income (Loss) and net income (loss) for the period.

Currencies in the local markets where the Company does business continue to be
weaker than the fourth fiscal quarter of 2008. The impact of this will be to
reduce the profit in those foreign markets that generate a profit and mitigate
the loss in the markets that generate a loss in local currency. This weakness,
should it continue, will reduce the Company`s Australian revenues and expenses
when reported in U.S. dollars. The Company`s Australian revenues and expenses
continue to comprise a majority of the Company`s overall revenues and expenses
as well as being its only profitable division for the nine months ended March
31, 2009. Based on current currency exchange rates, the first fiscal quarter of
2010 will also have difficult comps, after which, at current currency exchange
rates, the comps will be similar.

Conference Call

Global Traffic Network, Inc. will host a conference call at 8:30 a.m. EDT on
Monday, May 11, 2009, to discuss its fiscal third quarter results, as well as
other relevant matters. To listen to the call, dial (877) 723-9523 (domestic),
or (719) 325-4816 (international), and enter the pass code 8230549. The call
will also be available live on the Internet at www.globaltrafficnetwork.com and
www.kcsa.com.

A replay of the call will be available from 11:30 a.m. EDT on Monday, May 11,
2009 through 11:59 p.m. May 18, 2009. To access the replay, please call (888)
203-1112 or (719) 457-0820 (international) and enter the participant code:
8230549.

About Global Traffic Network

Global Traffic Network, Inc. (Nasdaq: GNET) is a leading provider of custom
traffic and news reports to radio and television stations outside the U.S. The
Company operates the largest traffic and news network in Australia, operates
traffic networks in eight Canadian markets and a national radio traffic network
across the United Kingdom. In exchange for providing custom traffic and news
reports, television and radio stations provide Global Traffic Network with
commercial airtime inventory that the Company sells to advertisers. As a result,
radio and television stations incur no out-of-pocket costs when contracting to
use Global Traffic Network`s services. For more information, visit the Company`s
website at www.globaltrafficnetwork.com.

This press release contains statements that constitute forward-looking
statements.These statements reflect our current views with respect to future
events.These forward-looking statements involve known and unknown risks,
uncertainties and other factors, including those discussed under the heading
"Risk Factors" and elsewhere in our annual report 10-K, which may cause our
actual results, performance or achievements to be materially different from any
future results, performances or achievements anticipated or implied by these
forward-looking statements.These statements can be recognized by the use of
words such as "may," "will," "intend," " should," "could," "can," "would,"
"expect," "believe," "estimate," " predict," "potential," "plan," "is designed
to," "target" or the negative of these terms, and similar expressions.We do not
undertake to revise or update any forward-looking statements to reflect future
events or circumstances.

Currency Exchange Rates for Income Statement Information
Three Months Ending Three Months Ending Difference
March 31, 2009 March 31, 2008

Australia 0.6645 0.9060 (26.7 %)
Canada 0.8037 0.9954 (19.3 %)
United Kingdom 1.4369 1.9783 (27.4 %)

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

Global Traffic Network, Inc. defines Adjusted Operating Income (Loss) as net
operating income (loss) adjusted to exclude depreciation and amortization
expense. The Company uses Adjusted Operating Income (Loss), among other things,
to evaluate its operating performance. The Company believes the presentation of
this measure is relevant and useful for investors because it helps improve their
ability to understand the Company`s operating performance and makes it easier to
compare the Company`s results with other companies that have different financing
and capital structures or tax rates. In addition, the Company believes this
measure is among the measures used by investors, analysts and peers in the media
industry for purposes of evaluation and comparing its operating performance to
other companies.

Adjusted Operating Income (Loss) is not a measure of performance calculated in
accordance with generally accepted accounting principles ("GAAP") and it should
not be considered in isolation of, or as a substitute for, net operating income
(loss) as an indicator of operating performance. Because Adjusted Operating
Income (Loss) excludes certain financial information compared with net operating
income (loss), the most directly comparable GAAP financial measure, users of
this financial information should consider the types of events and transactions
which are excluded. In addition, Adjusted Operating Income (Loss) may not be
comparable to measures of adjusted operating income, earnings before interest,
taxes, depreciation and amortization (EBITDA), adjusted EBITDA, operating cash
flow or similarly titled measures employed by other companies. Adjusted
Operating Income (Loss) is not necessarily a measure of the Company`s ability to
fund its cash needs.

The following presents the reconciliation of net operating income (loss) to
Adjusted Operating Income (Loss) for the three and nine month period ended March
31, 2009 and 2008.

Three Months Nine Months

Ended
Ended
March 31, March 31, March 31, March 31,

2009
2008
2009
2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In thousands) (In thousands) (In thousands) (In thousands)

Net operating (loss) income $ (1,465 ) $ 179 $ 1,861 $ 2,140
Add back:
Depreciation and amortization expense $ 602 $ 385 $ 1,443 $ 1,081
Adjusted Operating (Loss) Income $ (863 ) $ 564 $ 3,304 $ 3,221

Global Traffic Network, Inc.
Income Statement Detail
(Unaudited)
(In thousands)
Three Months Ended March 31

2009 2009 2009 2009 2009 2009
Australia Canada UK Mobile* Corporate Total
Revenues $ 8,803 $ 1,079 $ 2,580 $ - $ - $ 12,462
Operating expenses
Traffic 3,375 1,832 2,431 266 - 7,904
News 1,511 - 90 - - 1,601
TV 165 - - - - 165
Selling, G&A 1,524 466 264 202 - 2,456
Corporate overhead 299 - - - 602 901
Non-cash compensation - - - - 298 298
Depreciation/amortization 170 176 240 16 - 602

Operating income (loss) 1,759 (1,395 ) (445 ) (484 ) (900 ) (1,465 )

Interest expense 7 - - - - 7
Other (income) (119 ) (24 ) (13 ) - (34 ) (190 )
Other expense - - - - - -

Net income (loss) before taxes 1,871 (1,371 ) (432 ) (484 ) (866 ) (1,282 )
Income tax expense 555 - (60 ) - 7 502
Net income (loss) $ 1,316 $ (1,371 ) $ (372 ) $ (484 ) $ (873 ) $ (1,784 )

2008 2008 2008 2008 2008 2008
Australia Canada UK Mobile* Corporate Total
Revenues $ 10,745 $ 1,471 $ - $ - $ - $ 12,216
Operating expenses
Traffic 3,791 1,645 390 - - 5,826
News 1,658 - - - - 1,658
TV 203 - - - - 203
Selling, G&A 1,904 595 137 59 - 2,695
Corporate overhead 513 - - - 589 1,102
Non-cash compensation - - - - 168 168
Depreciation/amortization 207 173 5 - - 385

Operating income (loss) 2,469 (942 ) (532 ) (59 ) (757 ) 179

Interest expense 21 - - - - 21
Other (income) (160 ) (3 ) (1 ) - (265 ) (429 )
Other expense - - 11 - - 11

Net income (loss) before taxes 2,608 (939 ) (542 ) (59 ) (492 ) 576
Income tax expense 786 - - - 14 800
Net income (loss) $ 1,822 $ (939 ) $ (542 ) $ (59 ) $ (506 ) $ (224 )

*Mobile Traffic Network, Inc. was formed March 7, 2008. Certain information has
been reclassed from Global Traffic Network, Inc. for presentation in this
format.

Global Traffic Network, Inc.
Income Statement Detail
(Unaudited)
(In thousands)
Nine months Ended March 31,

2009 2009 2009 2009 2009 2009
Australia Canada UK Mobile* Corporate Total
Revenues $ 32,516 $ 5,076 $ 4,774 $ - $ - $ 42,366
Operating expenses
Traffic 10,874 5,179 4,991 537 - 21,581
News 5,071 - 90 - - 5,161
TV 560 - - - - 560
Selling, G&A 5,670 1,542 536 643 - 8,391
Corporate overhead 998 - - - 1,495 2,493
Non-cash compensation - - - - 876 876
Depreciation/amortization 548 546 324 25 - 1,443

Operating income (loss) 8,795 (2,191 ) (1,167 ) (1,205 ) (2,371 ) 1,861

Interest expense 32 - - - - 32
Other (income) (566 ) (30 ) (21 ) - (294 ) (911 )
Other expense 41 - - - - 41

Net income (loss) before taxes 9,288 (2,161 ) (1,146 ) (1,205 ) (2,077 ) 2,699
Income tax expense 2,786 - (60 ) - 11 2,737
Net income (loss) $ 6,502 $ (2,161 ) $ (1,086 ) $ (1,205 ) $ (2,088 ) $ (38 )

2008 2008 2008 2008 2008 2008
Australia Canada UK Mobile* Corporate Total
Revenues $ 31,995 $ 4,362 $ - $ - $ - $ 36,357
Operating expenses
Traffic 10,930 4,900 851 - - 16,681
News 4,881 - - - - 4,881
TV 578 - - - - 578
Selling, G&A 5,735 1,808 285 59 - 7,887
Corporate overhead 1,295 - - - 1,325 2,620
Non-cash compensation - - - - 489 489
Depreciation/amortization 587 489 5 - - 1,081

Operating income (loss) 7,989 (2,835 ) (1,141 ) (59 ) (1,814 ) 2,140

Interest expense 71 - - - - 71
Other (income) (280 ) (19 ) (4 ) - (939 ) (1,242 )
Other expense - 1 11 - - 12

Net income (loss) before taxes 8,198 (2,817 ) (1,148 ) (59 ) (875 ) 3,299
Income tax expense 2,478 - - - 25 2,503
Net income (loss) $ 5,720 $ (2,817 ) $ (1,148 ) $ (59 ) $ (900 ) $ 796

*Mobile Traffic Network, Inc. was formed March 7, 2008. Certain information has
been reclassed from Global Traffic Network, Inc. for presentation in this
format.

GLOBAL TRAFFIC NETWORK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share amounts)

Three Months Ended Nine Months Ended
March 31 March 31
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 12,462 $ 12,216 $ 42,366 $ 36,357

Operating 9,670 7,687 27,302 22,140
expenses
(exclusive
of
depreciation
and
amortization
shown
separately
below)
Selling, 3,655 3,965 11,760 10,996
general and
administrati
ve expenses
Depreciation 602 385 1,443 1,081
and
amortization
expense

Net (1,465 ) 179 1,861 2,140
operating
(loss)
income
Interest 7 21 32 71
expense
Other (190 ) (429 ) (911 ) (1,242 )
(income)
(including
interest
income of
$167 and
$426 for the
three months
ended March
31, 2009 and
2008 and
interest
income of
$878 and
$1,224 for
the nine
months ended
March 31,
2009 and
2008)
Other - 11 41 12
expense

Net (loss) (1,282 ) 576 2,699 3,299
income
before
income taxes
Income tax 502 800 2,737 2,503
expense

Net (loss) $ (1,784 ) $ (224 ) $ (38 ) $ 796
income

Income per
common
share:
Basic $ (0.10 ) $ (0.01 ) $ 0.00 $ 0.05
Diluted $ (0.10 ) $ (0.01 ) $ 0.00 $ 0.05
Weighted
average
common
shares
outstanding:
Basic 18,068,909 18,051,867 18,057,092 17,482,727
Diluted 18,068,909 18,051,867 18,057,092 17,578,102

GLOBAL TRAFFIC NETWORK, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

March 31, June 30,
2009 2008
(Unaudited) (Unaudited)
ASSETS:
Current
Assets:
Cash and cash $ 19,576 $ 37,541
equivalents
Accounts 12,752 13,355
receivable
net of
allowance for
doubtful
accounts of
$182 and $292
at March 31,
2009 and June
30, 2008
Prepaids and 1,076 961
other current
assets
Deferred tax 189 262
assets

Total current 33,593 52,119
assets

Property and 7,130 8,964
equipment,
net
Intangibles 16,808 418
Deferred tax 109 141
assets
Other assets 458 960

Total assets $ 58,098 $ 62,602

LIABILITIES
AND
SHAREHOLDERS`
EQUITY:
Current
Liabilities:
Accounts 9,757 $ 8,067
payable and
accrued
expenses
Deferred 795 1,293
revenue
Income taxes 1,755 3,186
payable
Current 275 459
portion of
long term
debt

Total current 12,582 13,005
liabilities
Long term 120 482
debt, less
current
portion
Deferred tax 3,029 -
liabilities
Other 289 389
liabilities

Total 16,020 13,876
liabilities

Common stock, 18 18
$.001 par
value;
100,000,000
shares
authorized;
18,264,834
shares issued
and
outstanding
as of March
31, 2009 and
18,156,133
shares issued
and
outstanding
as of June
30, 2008
Preferred - -
stock, $.001
par value;
10,000,000
authorized; 0
issued and
outstanding
as of March
31, 2009 and
June 30, 2008
Additional 49,868 49,015
paid in
capital
Accumulated (4,597 ) 2,866
other
comprehensive
(loss) income
Accumulated (3,211 ) (3,173 )
deficit

Total 42,078 48,726
shareholders`
equity

Total $ 58,098 $ 62,602
liabilities
and
shareholders`
equity

At KCSA Strategic Communications
Todd Fromer/Marybeth Csaby
212-896-1215/1236
tfromer@kcsa.com/mcsaby@kcsa.com
or
At Global Traffic Network, Inc.
Scott Cody, 212-896-1255
Chief Financial Officer & Chief Operating Officer
scott.cody@globaltrafficnet.com

Copyright Business Wire 2009