VisionChina Media Inc. Announces Fourth Quarter and Full-Year 2013 Results
BEIJING, March 17, 2014 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's
largest out-of-home digital television advertising networks on mass
transportation systems, today announced its unaudited financial results
for the fourth quarter and full-year ended December 31, 2013.
Key Quarterly Financial and Operating Data for the Fourth Quarter of 2013
Total revenues in the fourth quarter of 2013 were $32.5 million，representing 24.3% year-over-year growth.
Gross profit in the fourth quarter of 2013 was $7.6 million. Gross margin in the fourth quarter of 2013 was 23.3% compared to 0.2% in the same quarter in 2012.
Operating profit in the fourth quarter of 2013 was $0.5 million.
Net income attributable to VisionChina Media shareholders in the fourth quarter of 2013 was $0.1 million.
In
the fourth quarter of 2013, the Company's non-GAAP financial measure,
net income attributable to VisionChina Media shareholders excluding
share-based compensation expenses (non-GAAP), was $0.4 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $15.3 million in the fourth quarter of 2012.
Basic
and diluted net income per American Depository Share ("ADS")
attributable to VisionChina Media shareholders in the fourth quarter of
2013 was $0.03 and $0.03,
respectively (one ADS[1] represents twenty ordinary shares), compared
to basic and diluted net loss per ADS attributable to VisionChina Media
shareholders of $3.45 and $3.45, respectively, in the fourth quarter of 2012.
The Company had cash and cash equivalents of $38.9 million as of December 31, 2013. Net cash provided by operating activities was $5.8 million in the fourth quarter of 2013, compared to net cash used in operating activities of $2.3 million in the third quarter of 2013.
Total
broadcasting hours in the Company's network in the fourth quarter of
2013 were 38,458 hours, compared to 39,930 broadcasting hours in the
fourth quarter of 2012.
As of December 31, 2013,
the Company's network covered 19 cities, secured either by exclusive
agency agreements or joint venture contracts, and included 111,163
digital displays on mass transit systems.
Average advertising revenue per broadcasting hour on the Company's network in the fourth quarter of 2013 was $772, compared to $581 in the fourth quarter of 2012.
The
Company sold an average of 9.16 advertising minutes per broadcasting
hour on its network in the fourth quarter of 2013, compared to 5.91
minutes in the fourth quarter of 2012.
Full-Year 2013 Highlights
Total revenues were $104.7 million in the full-year 2013, of which advertising service revenue was $103.1 million.
Gross profit in the full-year 2013 was $13.9 million.
Operating loss in the full-year 2013 was $22.0 million.
Net loss attributable to VisionChina Media shareholders in the full-year 2013 was $24.0 million.
The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2013 was $21.0 million.
Basic and diluted net loss per ADS attributable to VisionChina Media shareholders in the full-year 2013 were $4.72 and $4.72
Total broadcasting hours in the Company's network were 152,575 hours in the full-year 2013.
The Company sold an average of 7.43 advertising minutes per broadcasting hour in the full-year 2013.
Average advertising service revenue per broadcasting hour in the full-year 2013 was $633.
Mr. Limin Li,
VisionChina Media's chairman and chief executive officer, commented,
"We are pleased to report a profitable fourth quarter of 2013, which was
the result of continued improvements in our operating efficiency along
with strict cost-control measures. Also, the series of transitional
strategies we implemented regarding promotional and marketing events,
technological innovation, and programming production have yielded
encouraging results and have significantly broadened our product and
service offerings. We are also vigorously working with our bus partners,
along with leading internet companies, to explore additional ways of
monetizing our networks amid the popularity of the mobile internet.
While we have come to expect seasonal weakness in the first quarter, I
am confident that we are on the right track to continue to deliver
improved operational and financial results in 2014."
Stanley Wang,
the Company's chief financial officer, added, "The fourth quarter of
2013 marked a strong rebound for VisionChina Media, reflecting continued
gains in our brand recognition among advertisers given our scale of
coverage, high conversion rates, and highly cost-effective mobile TV
networks, which hold particular appeal for mobile internet operators as a
means to break through limitations in traditional online advertising.
Going forward, we will continue to carefully manage costs and expenses
in order to provide a solid foundation for sustainable and long-term
bottom-line growth."
Fourth Quarter 2013 Results
VisionChina Media's total revenues were $32.5 million in the fourth quarter of 2013, representing an increase of 24.3% from $26.1 million in the fourth quarter of 2012 and an increase of 13.9% from $28.5 million
in the third quarter of 2013. Advertising service revenue, which
accounted for 96.3% of total revenues in the fourth quarter of 2013, was
$31.3 million, representing an increase
of 22.9% compared to the fourth quarter of 2012 and an increase of 11.1%
compared to the third quarter of 2013.
Total
broadcasting hours in the fourth quarter of 2013 were 38,458 hours,
compared to 39,930 hours in the fourth quarter of 2012 and 39,930 hours
in the third quarter of 2013.
Average advertising revenue per broadcasting hour was $772 in the fourth quarter of 2013, compared to $581 in the fourth quarter of 2012 and $687 in the third quarter of 2013.
In
the fourth quarter of 2013, the Company sold a total of 352,418
advertising minutes in its network, compared to 235,794 advertising
minutes in the fourth quarter of 2012 and 305,926 advertising minutes in
the third quarter of 2013.
The
Company sold an average of 9.16 advertising minutes per broadcasting
hour in the fourth quarter of 2013, compared to 5.91 advertising minutes
per broadcasting hour in the fourth quarter of 2012 and 7.95
advertising minutes per broadcasting hour in the third quarter of 2013.
During
the fourth quarter of this year, 462 advertisers purchased advertising
time on the Company's advertising network, either directly or through
advertising agents, compared to 533 advertisers in the fourth quarter of
2012 and 463 advertisers in the third quarter of 2013.
Media
cost, the most significant component of advertising service cost,
was $19.8 million in the fourth quarter of 2013, representing 80.9% of
total advertising service cost, compared to $20.0 million, or 76.5% of
total advertising service cost, in the fourth quarter of 2012, and $17.5
million, or 81.1% of total advertising service cost, in the third
quarter of 2013.
Gross profit in the fourth quarter of 2013 was $7.6 million, compared to gross loss of $40,898 in the fourth quarter of 2012 and gross profit of $6.9 million in the third quarter of 2013.
Advertising
service gross margin was 22.0% in the fourth quarter of 2013, compared
to gross margin of negative 1.8% in the fourth quarter of 2012 and gross
margin of 23.4% in the third quarter of 2013.
Selling and marketing expenses were $5.4 million in the fourth quarter of 2013, representing a decrease of 40.0% from $9.0 million in the fourth quarter of 2012 and a decrease of 24.6% from $7.1 million
in the third quarter of 2013. Selling and marketing expenses accounted
for 17.2% of the Company's advertising service revenue in the fourth
quarter of 2013, compared to 35.2% in the fourth quarter of 2012 and
25.3% in the third quarter of 2013.
General and administrative expenses were $2.4 million in the fourth quarter of 2013, representing a decrease of 55.1% from $5.5 million in the fourth quarter of 2012 and a decrease of 2.7% from $2.5 million in the third quarter of 2013.
Operating profit was $0.5 million in the fourth quarter of 2013, compared to operating loss of $16.4 million in the fourth quarter of 2012 and operating loss of $2.9 million in the third quarter of 2013.
The Company recorded a net interest expense of $0.3 million in the fourth quarter of 2013, compared to net interest expense of $0.5 million in the fourth quarter of 2012 and net interest expense of $0.2 million in the third quarter of 2013.
The Company recorded income tax expenses of $0.2 million in the fourth quarter of 2013, compared to income tax expenses of $1.1 million in the fourth quarter of 2012 and income tax expenses of $0.05 million in the third quarter of 2013.
Net income attributable to VisionChina Media shareholders (GAAP) was $0.1 million in the fourth quarter of 2013, compared to net loss attributable to VisionChina Media shareholders of $17.5 million in the fourth quarter of 2012 and net loss attributable to VisionChina Media shareholders of $3.7 million in the third quarter of 2013.
Basic and diluted net income per ADS was $0.03 and $0.03, respectively, in the fourth quarter of 2013.
The
Company's non-GAAP financial measure, net income attributable to
VisionChina Media shareholders, excluding share-based compensation
expenses (non-GAAP) was $0.4 million in the fourth quarter of 2013, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $15.3 million in the fourth quarter of 2012 and non-GAAP net loss attributable to VisionChina Media shareholders of $3.5 million in the third quarter of 2013.
As of December 31, 2013, the Company had 111,163 digital television displays in its network, compared to 108,567 as of December 31, 2012 and 110,383 as of September 30, 2013.
As of December 31, 2013, the Company had 642 employees, compared to 715 employees as of December 31, 2012 and 666 employees as of September 30, 2013.
The Company had cash and cash equivalents of $38.9 million as of December 31, 2013, compared to $35.7 million as of September 30, 2013. Net cash provided by operating activities was $5.8 million in the fourth quarter of 2013, compared to net cash used in operating activities of $2.3 million in the third quarter of 2013.
Depreciation and amortization was $1.0 million and capital expenditures were $0.2 million in the fourth quarter of 2013.
Full-Year 2013 Results
Total revenues in the full-year 2013 were $104.7 million, a decrease of 9.4% from $115.7 million in the full-year 2012. Advertising service revenue, which accounted for 98.4% of total revenues in the full-year 2013, was $103.1 million, representing a decrease of 10.1% from $114.7 million in the full-year 2012.
Media cost, the most significant component of advertising service cost, was $72.9 million in the full-year 2013, representing 80.8% of total advertising service cost, compared to $97.1 million, or 79.8% of total advertising service cost in the full-year 2012.
Gross profit in the full-year 2013 was $14.0 million, compared to gross loss of $6.1 million
in the full-year 2012. Advertising service gross margin was 13.3% in
the full-year 2013, compared to negative 5.8% in the full-year 2012.
Selling and marketing expenses in the full-year 2013 were $27.3 million, compared to $43.0 million
in the full-year 2012. The decrease in selling and marketing expenses
was primarily due to strict cost control measures executed by the
company.
General and administrative expenses in the full-year 2013 were $9.3 million, compared to $18.4 million
in the full-year 2012. The decrease in general and administrative
expenses was mainly attributable to decreases in legal costs and bad
debt expenses.
Operating loss in the full-year 2013 was $22.0 million, compared to an operating loss of $252.3 million in the full-year 2012. Operating loss in the full year of 2012, primarily due to a non-cash impairment charge of $178.8 million,
as the result of a write-down of goodwill and intangible assets
associated with the Company's acquisitions of the six advertising agency
businesses in 2008 and the Company's acquisition of Digital Media Group
Company Limited ("Digital Media Group"), which was completed in 2010.
The Company recorded net interest expense of $1.0 million in the full-year 2013, compared to net interest expense of $1.9 million in the full-year 2012.
The Company recorded an income tax expense of $0.4 million in the full-year 2013, compared to an income tax benefit of $7.5 million in the full-year 2012.
Net loss attributable to VisionChina Media shareholders in the full-year 2013 was $24.0 million, compared to net loss attributable to VisionChina Media shareholders of $246.4 million
in the full-year 2012. Basic and diluted net loss per ADS attributable
to VisionChina Media shareholders, in the full-year 2013, was $4.72 and $4.72 respectively.
The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2013 was $21.0 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $66.6 million (non-GAAP) in the full-year 2012.
Business Outlook
The Company estimates its advertising service revenue in the first quarter of 2014 will be between $20.5 million and $21.5 million,
excluding 6% Value Added Tax, representing year-over-year growth of
20.6% to 26.4%. The Company estimates that advertising service revenue
during the first quarter of 2014 will be negatively affected by
seasonality. The Company expects that the seasonal impact will be
short-term in nature and that the Company's advertising service revenue
will increase in subsequent quarters.
These estimates are based on an exchange rate of RMB 6.1232 per $1.00.
The
Company notes that its guidance is based on its current network that,
as of the date of this press release, has already been secured by
exclusive agency agreements or joint venture contract, and is based on
management's current assessment of the possible outcome of settlement
discussions with the selling shareholders and former management of
Digital Media Group. If the number of cities in the Company's network
expands or contracts, or if there is any progress in the settlement
discussions that affects management's assessment of the possible
outcome, management's forecast could be affected.
Conference Call
VisionChina Media's management will hold an earnings conference call at 8:00 p.m. U.S. Eastern Time on March 17, 2014 (8:00 a.m. Beijing/Hong Kong Time on March 18, 2014).
U.S. Toll Free: +1-866-519-4004
U.S. Toll: +1-845-675-0437
Hong Kong Toll: +852-2475-0994
International Toll: +65-6723-9381
Passcode for all regions: VisionChina
U.S. Toll: +1-845-675-0437
Hong Kong Toll: +852-2475-0994
International Toll: +65-6723-9381
Passcode for all regions: VisionChina
A replay of the conference call may be accessed by phone at the following numbers until March 24, 2014.
U.S. Toll Free: +1-855-452-5696
U.S. Toll: +1-646-254-3697
International Toll: +61-2-8199-0299
Conference ID: 9208169
U.S. Toll: +1-646-254-3697
International Toll: +61-2-8199-0299
Conference ID: 9208169
Additionally,
a live and archived webcast of this conference call will be available
on the Investor Relations section of VisionChina Media's website at http://www.visionchina.cn.
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of December 31, 2013, VisionChina Media's advertising network included 111,163 digital television displays on mass transportation systems in 19 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen,
as secured by exclusive agency agreements or joint venture contract.
VisionChina Media has the ability to deliver real-time,
location-specific broadcasting, including news, stock quotes, weather
and traffic reports, and other entertainment programming. For more
information, please visit http://www.visionchina.cn.
Use of Non-GAAP Financial Measures
In
addition to VisionChina Media's consolidated financial results under
GAAP, the Company also provides non-GAAP financial measures, including
net income/(loss) excluding non-cash share-based compensation expenses,
amortization of intangible assets, contingent loss in connection with a
litigation, impairment loss and income tax credit in connection with the
impairment loss. The Company believes that the non-GAAP financial
measures provide investors with another method for assessing VisionChina
Media's operating results in a manner that is focused on the
performance of its ongoing operations. Readers are cautioned not to view
non-GAAP results on a stand-alone basis or as a substitute for results
under GAAP, or as being comparable to results reported or forecasted by
other companies. The Company believes that both management and investors
benefit from referring to these non-GAAP financial measures in
assessing the performance of VisionChina Media's liquidity and when
planning and forecasting future periods. The Company computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter.
Safe Harbor Statement
This
press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will", "expects",
"anticipates", "future", "intends", "plans", "believes", "estimates" and
similar statements. Among other things, the quotations from management
in this press release contain forward-looking statements. Such
statements involve certain risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. Further information regarding these and other risks is
included in the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1 and its
annual report on Form 20-F. The Company does not undertake any
obligation to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
For investor and media inquiries, please contact:
In China:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86-134-2090-9426
E-mail: shuning.yi@visionchina.cn
Investor Relations Department
VisionChina Media Inc.
Tel: +86-134-2090-9426
E-mail: shuning.yi@visionchina.cn
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
Email: colin.wang@visionchina.cn
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
Email: colin.wang@visionchina.cn
In the United States:
|
[1]
|
ADS amounts adjusted for a
change in the ratio of the Company's American Depositary Shares to
ordinary shares from 1:1 to 1:20, effective as of December 12, 2012.
|
|
VISIONCHINA MEDIA INC.
| ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
| ||||||||
|
(Amounts in thousand U.S. dollars)
| ||||||||
|
December 31, 2013
|
September 30, 2013
|
December 31, 2012
| ||||||
|
(Unaudited)
|
(Unaudited)
|
(Note 1)
| ||||||
|
ASSETS
|
||||||||
|
Current Assets:
|
||||||||
|
Cash and cash equivalents
|
38,949
|
35,659
|
29,012
| |||||
|
Restricted cash
|
12,856
|
15,353
|
14,533
| |||||
|
Accounts receivable, net
|
39,065
|
36,609
|
36,743
| |||||
|
Amounts due from related parties
|
2,329
|
1,642
|
2,104
| |||||
|
Prepaid expenses and other current assets
|
19,087
|
20,973
|
26,808
| |||||
|
Total current assets
|
112,286
|
110,236
|
109,200
| |||||
|
Non-current Assets:
|
||||||||
|
Fixed assets, net
|
7,884
|
8,713
|
10,782
| |||||
|
Intangible assets
|
418
|
341
|
367
| |||||
|
Investments under equity method
|
7,622
|
7,764
|
7,305
| |||||
|
Other investments
|
3,140
|
3,127
|
3,045
| |||||
|
Long-term prepayments and deposits
|
18,820
|
19,355
|
17,537
| |||||
|
Restricted cash
|
818
|
815
|
1,115
| |||||
|
Deferred tax assets
|
153
|
335
|
444
| |||||
|
Total non-current assets
|
38,855
|
40,450
|
40,595
| |||||
|
TOTAL ASSETS
|
151,141
|
150,686
|
149,795
| |||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Current Liabilities:
|
||||||||
|
Short-term bank loans
|
26,340
|
31,240
|
8,998
| |||||
|
Accounts payable
|
5,745
|
4,946
|
7,744
| |||||
|
Amounts due to related parties
|
1,678
|
1,364
|
1,828
| |||||
|
Consideration payable
|
75,800
|
75,800
|
64,000
| |||||
|
Income tax payable
|
51
|
5
|
24
| |||||
|
Accrued expenses and other current liabilities
|
20,017
|
16,581
|
26,210
| |||||
|
Total current liabilities
|
129,631
|
129,936
|
108,804
| |||||
|
Non-current Liabilities:
|
||||||||
|
Other non-current liabilities
|
2,175
|
2,166
|
977
| |||||
|
Total non-current liabilities
|
2,175
|
2,166
|
977
| |||||
|
Total liabilities
|
131,806
|
132,102
|
109,781
| |||||
|
Equity:
|
||||||||
|
Common shares
|
10
|
10
|
10
| |||||
|
Additional paid-in capital
|
343,512
|
343,201
|
342,671
| |||||
|
Accumulated deficit
|
(364,105)
|
(364,235)
|
(340,138)
| |||||
|
Accumulated other comprehensive income
|
39,908
|
39,578
|
37,372
| |||||
|
Total VisionChina Media Inc. shareholders' equity
|
19,325
|
18,554
|
39,915
| |||||
|
Noncontrolling interest
|
10
|
30
|
99
| |||||
|
Total equity
|
19,335
|
18,584
|
40,014
| |||||
|
TOTAL LIABILITIES AND EQUITY
|
151,141
|
150,686
|
149,795
| |||||
|
Note 1: Information
extracted from the audited consolidated financial statements included in
the Company's 2012 annual report on Form 20-F filed with the Securities and Exchange Commission on May 30, 2013 and rounded to thousand of U.S. dollars.
| ||||||||
|
VISIONCHINA MEDIA INC.
| |||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| |||||
|
(Amounts in thousand U.S. Dollars, except number of shares and per share data)
| |||||
|
For three months ended
| |||||
|
December 31, 2013
|
September 30, 2013
|
December 31, 2012
| |||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
| |||
|
Revenues:
|
|||||
|
Advertising service revenue
|
31,294
|
28,175
|
25,457
| ||
|
Other revenue
|
1,186
|
345
|
672
| ||
|
Total revenues
|
32,480
|
28,520
|
26,129
| ||
|
Cost of revenues:
|
|||||
|
Advertising service cost
|
(24,408)
|
(21,579)
|
(25,909)
| ||
|
Other cost
|
(489)
|
(17)
|
(261)
| ||
|
Total cost of revenues
|
(24,897)
|
(21,596)
|
(26,170)
| ||
|
Gross profit/(loss)
|
7,583
|
6,924
|
(41)
| ||
|
Operating expenses:
|
|||||
|
Selling and marketing expenses
|
(5,380)
|
(7,136)
|
(8,968)
| ||
|
General and administrative expenses
|
(2,448)
|
(2,517)
|
(5,454)
| ||
|
Contingent loss in connection with a litigation
|
-
|
-
|
(2,043)
| ||
|
Total operating expenses
|
(7,828)
|
(9,653)
|
(16,465)
| ||
|
Share of loss from equity method investees
|
(89)
|
(395)
|
(61)
| ||
|
Dividend income from cost method investments
|
-
|
-
|
162
| ||
|
Government grant
|
832
|
179
|
-
| ||
|
Operating profit (loss)
|
498
|
(2,945)
|
(16,405)
| ||
|
Interest income
|
44
|
122
|
141
| ||
|
Interest expense
|
(294)
|
(292)
|
(642)
| ||
|
Other income (expenses)
|
81
|
(556)
|
455
| ||
|
Net income (loss) before income taxes
|
329
|
(3,671)
|
(16,451)
| ||
|
Income tax
|
(218)
|
(52)
|
(1,057)
| ||
|
Net loss
|
111
|
(3,723)
|
(17,508)
| ||
|
Net loss attributable to noncontrolling interest
|
19
|
21
|
29
| ||
|
Net income (loss) attributable to VisionChina Media Inc. shareholders
|
130
|
(3,702)
|
(17,479)
| ||
|
Net income (loss) per share:
|
|||||
|
Basic
|
0.00
|
(0.04)
|
(0.17)
| ||
|
Diluted
|
0.00
|
(0.04)
|
(0.17)
| ||
|
Net income (loss) per ADS (1):
|
|||||
|
Basic
|
0.03
|
(0.73)
|
(3.45)
| ||
|
Diluted
|
0.03
|
(0.73)
|
(3.45)
| ||
|
Weighted average number of shares used in computation of net income (loss) per share:
|
|||||
|
Basic
|
101,494,507
|
101,366,632
|
101,373,145
| ||
|
Diluted
|
101,494,507
|
101,366,632
|
101,373,145
| ||
|
Weighted average number of ADS used in computation of net income (loss) per ADS:
|
|||||
|
Basic
|
5,074,725
|
5,068,332
|
5,068,657
| ||
|
Diluted
|
5,074,725
|
5,068,332
|
5,068,657
| ||
|
Share-based compensation expenses during the related periods included in:
|
|||||
|
Cost of revenues
|
(34)
|
(13)
|
(13)
| ||
|
Selling and marketing expenses
|
(102)
|
(91)
|
(95)
| ||
|
General and administrative expenses
|
(176)
|
(70)
|
(50)
| ||
|
Total
|
(312)
|
(174)
|
(158)
| ||
|
Reconciliation from
GAAP net income (loss) attributable to VisionChina Media Inc.
shareholders to Adjusted Non-GAAP net income (loss) attributable
to VisionChina Media Inc. shareholders:
|
|||||
|
Net income (loss) attributable to VisionChina Media Inc. shareholders (GAAP)
|
130
|
(3,702)
|
(17,479)
| ||
|
Add back share-based compensation expenses
|
312
|
174
|
158
| ||
|
Add back amortization of intangible assets
|
-
|
-
|
-
| ||
|
Add back contingent loss in connection with a litigation
|
-
|
-
|
2,043
| ||
|
Net income (loss) attributable to VisionChina Media Inc. shareholders (Non-GAAP)
|
442
|
(3,528)
|
(15,278)
| ||
|
Note 1: ADS amounts
adjusted for a change in the ratio of the Company's American Depositary
Shares ("ADSs") to ordinary shares ("Shares") from 1:1 to 1:20 ("Ratio
Change"), effective as of December 12, 2012.
| |||||
|
VISIONCHINA MEDIA INC.
| |||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| |||
|
(Amounts in thousand U.S. Dollars, except number of shares and per share data)
| |||
|
For twelve months ended
| |||
|
December 31, 2013
|
December 31, 2012
| ||
|
(Unaudited)
|
(Note 1)
| ||
|
Revenues :
|
|||
|
Advertising service revenue
|
103,117
|
114,741
| |
|
Other revenue
|
1,625
|
926
| |
|
Total revenues
|
104,742
|
115,667
| |
|
Cost of revenues :
|
|||
|
Advertising service cost
|
(90,310)
|
(121,374)
| |
|
Other cost
|
(514)
|
(345)
| |
|
Total cost of revenues
|
(90,824)
|
(121,719)
| |
|
Gross profit (loss)
|
13,918
|
(6,052)
| |
|
Operating expenses :
|
|||
|
Selling and marketing expenses
|
(27,275)
|
(42,980)
| |
|
General and administrative expenses
|
(9,337)
|
(18,394)
| |
|
Impairment loss
|
-
|
(178,814)
| |
|
Contingent loss in connection with a litigation
|
(2,149)
|
(6,275)
| |
|
Total operating expenses
|
(38,761)
|
(246,463)
| |
|
Share of profits from equity method investees
|
8
|
46
| |
|
Dividend income from cost method investments
|
44
|
162
| |
|
Government grant
|
2,783
|
-
| |
|
Operating loss
|
(22,008)
|
(252,307)
| |
|
Interest income
|
419
|
696
| |
|
Interest expense
|
(1,426)
|
(2,615)
| |
|
Other income
|
(667)
|
151
| |
|
Net loss before income taxes
|
(23,682)
|
(254,075)
| |
|
Income tax (expense) benefit
|
(373)
|
7,547
| |
|
Net loss
|
(24,055)
|
(246,528)
| |
|
Net loss attributable to noncontrolling interest
|
88
|
119
| |
|
Net loss attributable to VisionChina Media Inc. shareholders
|
(23,967)
|
(246,409)
| |
|
Net loss per share:
|
|||
|
Basic
|
(0.24)
|
(2.43)
| |
|
Diluted
|
(0.24)
|
(2.43)
| |
|
Net loss per ADS (2):
|
|||
|
Basic
|
(4.72)
|
(48.62)
| |
|
Diluted
|
(4.72)
|
(48.62)
| |
|
Weighted average number of shares used in computation of net loss per share:
|
|||
|
Basic
|
101,495,442
|
101,351,222
| |
|
Diluted
|
101,495,442
|
101,351,222
| |
|
Weighted average number of ADS used in computation of net loss per ADS:
|
|||
|
Basic
|
5,074,772
|
5,067,561
| |
|
Diluted
|
5,074,772
|
5,067,561
| |
|
Share-based compensation expenses during the related periods included in:
|
|||
|
Cost of revenues
|
(73)
|
(53)
| |
|
Selling and marketing expenses
|
(379)
|
(395)
| |
|
General and administrative expenses
|
(390)
|
(221)
| |
|
Total
|
(842)
|
(669)
| |
|
Reconciliation from GAAP net loss attributable to VisionChina Media Inc.
shareholders to Adjusted Non-GAAP net loss attributable to VisionChina
Media Inc. shareholders: |
|||
|
Net loss attributable to VisionChina Media Inc. shareholders (GAAP)
|
(23,967)
|
(246,409)
| |
|
Add back share-based compensation expenses during the related periods
|
842
|
669
| |
|
Add back amortization of intangible assets during the related periods
|
3,106
| ||
|
Add back provision for contingent loss in connection with a litigation
|
2,149
|
6,275
| |
|
Add back impairment loss of goodwill and intangible assets in the related period
|
-
|
178,814
| |
|
Subtract tax credit in connection to impairment of intangible assets
|
(9,102)
| ||
|
Net loss attributable to VisionChina Media Inc. shareholders (Non-GAAP)
|
(20,976)
|
(66,647)
| |
|
Note 1: Information
extracted from the audited consolidated financial statements included in
the Company's 2012 annual report on Form 20-F filed with the Securities
and Exchange Commission on May 30, 2013, and rounded to thousands of US
dollars.
Note 2: ADS amounts adjusted for a change in the ratio of the Company's American Depositary Shares ("ADSs") to ordinary shares ("Shares") from 1:1 to 1:20, effective as of December 12, 2012. | |||
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