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Arbitron is a Money Machine


In addition to a revenue increase of 8.3% for the third quarter of 2012, Arbitron officials announced they are in pretty solid financial condition. It was Debra Delman's first conference call for the company. She was hired as the new CFO in August, coming over from National Public Radio. Delman (pictured) reported Arbitron had $37 million in cash on the books and no debt.

For the nine months of 2012 Arbitron took in $325.1 million, an increase of 7.6 percent compared to revenue of $302.2 million for the same period in 2011. Net income increased 11.2 percent to $43.6 million compared with $39.2 million in 2011. Delman also said Arbitron cash flowed $86 million from January through September.

Investors typically want a company to either grow by purchasing other companies or to buy back shares. Arbitron COO Sean Cramer, who ran the conference call for Bill Kerr yesterday, told analysts that while there are more companies in the market available to purchase it didn't appear any were a fit for Arbitron at this time. Arbitron has been authorized by its board to buy back 100 million shares but did not buy back any shares during the third quarter. Creamer said the company has a little more than a year to repurchase those shares and has already bought back half of the amount authorized by the board. 

Arbitron expects 2012 revenue to increase between 5 percent and 7 percent over its 2011 revenue of $422.3 million.

(10/25/2012 2:07:14 PM)
Yes....A money machine. While their largest vendor scrapes by with 1% increases. Wake up Radio - your getting gouged! There are other - better - vendors out there. Why make them rich when they sample so poorly even in prime demos.

- Realist

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