omniture

China Yida Reports Record Results for the First Quarter 2010

2010-05-14 19:57 948

FUZHOU, China, May 14 /PRNewswire-Asia/ -- China Yida Holding Company (Nasdaq: CNYD) ("China Yida" or the "Company"), a leading diversified entertainment and media enterprise in China, today announced record financial results for the quarter ended March 31, 2010.

(Logo: http://www.prnasia.com/sa/2009/10/12/20091012155952.jpg )

First Quarter 2010 Highlights

-- Total net revenue increased 50.7% to $14.8 million, compared to $9.8

million in the first quarter of 2009

-- Net revenue from the tourism business increased 86.8% year over year to

$6.0 million

-- Net revenue from the media business increased 33.0% year over year to

$8.8 million

-- Operating income grew 43.8% to $9.6 million, compared to $6.7 million

in the first quarter of 2009

-- Net income increased 43.5% to $7.1 million, compared to $4.9 million in

the same period last year

-- Fully diluted EPS was $0.37 per share, compared to $0.07 in the first

quarter of 2009, or $0.28 after adjustment of 1-for-4 reverse split

approved by our board on April 23, 2009

-- Closed a registered direct offering of 2,489,721 common shares at a

purchase price of $11.50 per share for net proceeds of approximately

$28.6 million.

Dr. Chen Minhua, Chairman and Chief Executive Officer of China Yida, stated, "We are very pleased to report strong profitable growth for the first quarter of 2010, driven by the increase in visitors to our Great Golden Lake park, as well as higher advertising revenue from FETV, and revenue contribution from Hua'An Tulou and railway media. We recently signed two new tourism projects outside the Fujian Province to further expand our capacity to take advantage of the flourishing tourism and leisure market in China. As we look to the future, we feel confident that our track record of execution, industry leading portfolio of tourism and media assets, and strong pipeline of new opportunities positions well to participate in the expected growth of the leisure industry in China."

First Quarter 2010 Results

Total net revenue increased by 50.7% to $14.8 million, compared with $9.8 million in the first quarter of 2009.

Tourism Business

Net revenue from the tourism business increased 86.8% to $6.0 million, compared with $3.2 million in the first quarter of 2009.

For the first quarter of 2010, the Great Golden Lake generated $4.9 million in revenues with the total number of visitors increasing 26% year over year to around 161,000. Hua'An Tulou accepted 65,000 visitors, and contributed revenue of $1.17 million in this quarter. There was no revenue from Hua'An Tulou during the first quarter of 2009.

Media Business

Net revenue from the media business grew 33.0% to $8.8 million, compared with $6.6 million in the same period of last year.

Advertising revenue from FETV during the first quarter of 2010 was approximately $7.7 million, an increase of 17.5% year over year, which was increase in sale of airtime. The "Journey through China on a Train" infomercial program generated $1.0 million in revenue for the quarter, compared to zero in the corresponding period of last year. This program is now reaching approximately 200 million passengers each year.

Gross profit for China Yida's consolidated operations was $11.9 million in the first quarter of 2010, with gross margin of 80.3%, compared to $8.3 million and 84.7% for the comparable period of 2009, respectively. The decrease in gross margin was mainly due to higher costs for ramping-up new projects in their early stages including Hua'An Tulou and "Journey through China on the Train."

Total operating expense increased by 38.6% to $2.3 million in the first quarter of 2010, compared with $1.6 million in the first quarter of 2009. Higher operating expenses were driven primarily by the increase in selling expenses to support the launch of our new businesses.

Operating income increased by 43.8% to $9.6 million, compared with $6.7 million a year ago. Operating margin for the first quarter of 2010 was 65.0%, compared with 68.2% for the first quarter of 2009.

Net income for the first quarter of 2010 was $7.1 million, or $0.37 per diluted share, an increase of 43.5%, compared with a net income of $4.9 million, or $0.07 per diluted share (or $0.28 after adjustment of 1-for-4 reverse split approved by our board on April 23, 2009), in the first quarter of 2009.

Financial Condition

As of March 31, 2010, the Company reported $31.1 million in cash and cash equivalents. Working capital was $27.1 million with a current ratio of 5.8. As of March 31, 2010, the Company had $111.3 million in shareholders' equity compared to $77.7 million at the end of 2009.

China Yida generated $7.8 million in cash flow from operating activities in the first quarter of 2010 and spent $9.1 million on capital expenditures, which were primarily used for the construction of entertainment facilities at Yunding Park and Hua'An Tulou. For the rest of year 2010, the Company expects a residual scheduled payment of approximately $10 million related to the construction of Yunding Park, and approximately $1 million related to Hua'An Tulou. The Company has also budgeted approximately $35 million related to the new projects in Anhui and Jiangxi province in 2010, the Company closed a registered direct offering of 2,489,721 common shares at a purchase price of $11.50 per share for net proceeds of approximately $28.6 million. Management believes the current cash and operating cash flow will be sufficient to fund the company's ongoing projects and growth strategy.

Recent Development

On April 15, 2010, China Yida jointly with Anhui Xingguang Investment Group Ltd., entered into an agreement with Bengbu Municipal Government to develop the Ming Dynasty Entertainment World in the southeast part of Bengbu, Anhui Province, which covers a total area of approximately 5000 Mu (approximately 824 acres as 1 acre = 6.07 Mu).

On April 18, 2010, China Yida entered into an agreement with Zhangshu Municipal Government to develop China Yang-sheng (Nourishing Life) Paradise project, a large-scale vacation destination covering a total area of approximately 6000 Mu (approximately 988 acres), in Zhangshu City, Jiangxi Province. The Project is designed to focus on the theme of famous Taoist practice - Yang-sheng (Nourishing Life), with Zhangshu City's rare natural resources - salt water hot spring, and reputation as one of China's traditional medicine and herb centers. Yang-sheng (Nourishing Life) is the foundation of Taoist lifestyle, which is still desired and actively pursued within today's Asian community.

On April 29, 2010, Dr. Minhua Chen, the Company's Chairman and CEO, presided over the opening bell at the NASDAQ Market Site in New York City to celebrate the Company's listing on the NASDAQ Stock Market. The Company's CFO, Mr. George Wung, gave live interviews at the Wall Street Journal and Street.com to introduce China's fast growing tourism market and China Yida's businesses.

Business Outlook

For the media business management expects 2010 organic growth of 5-10% in advertising revenues from FETV. As the initial phase defined in the management agreement with FETV station will expire in July 2010, the management has started negotiation to secure the extended management term. As of this date, the negotiation is going well and within management's expectations. In addition, the Company will continue its marketing efforts to expand the advertising client base for the "Journey through China on a Train" infomercial program.

Management believes the Company's tourism business will achieve strong growth in 2010 both at existing and newly opened tourist attractions. The high-speed train between Fuzhou and Xiamen was put into use in April 2010, which makes the transportation much easier between the two largest cities of Fujian Province. The management expects that the high speed train will help bring more visitors to their tourism destinations in Fujian Province. Also, the expressway connecting Wuyi Mountain and the Great Golden Lake is expected to be completed and put into use by September 2010, which the management believes will greatly benefit the Great Golden Lake destination. The construction of Yunding Park however, has been affected by poor weather. Management is working hard to catch up on the schedule and looks forward to opening the park to tourists in September 2010, i.e. prior to China's National Holiday.

"We currently have two world class tourism destinations - Great Golden Lake and Hua'an Tulou - under operation with strong growth, and a new large recreational park - Yunding Park - opening to visitors soon. In addition, we have two promising projects outside Fujian Province which we expect will come on line in 2012. As we leverage our strong tourism management expertise and our portfolio of premium media assets, we believe China Yida to deliver long term sustainable growth and to create meaningful and lasting value to our shareholders," Dr. Chen Minhua added.

Conference Call

China Yida will hold a conference call at 10:00 a.m. Eastern Time on Friday, May 14, 2010 to discuss financial results for the first quarter ended March 31, 2010. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 866-672-3985. International callers may dial 706-902-4207. The conference ID for this call is 74921334. If you are unable to participate in the call at this time, a replay will be available for two weeks starting on Friday May 14, 2010 at 10:00 a.m. EDT. To access the replay, dial 800-642-1687, international callers may dial 706-645-9291. The Conference Replay pass-code is 74921334.

About China Yida

China Yida is a leading diversified entertainment enterprise focused on China's fast-growing tourism and media industries and headquartered in Fuzhou City, Fujian province of China. The Company's media business provides operations management services; including channel, column and advertisement management for television station, presently the Fujian Education Television Station ("FETV", a top-rated provincial education television channel), and "Journey through China on the Train" (an advertisement-embedded travel program). Additionally, the Company provides tourism management services, and specializes in the development, management and operation of natural, cultural and historic scenic sites. China Yida currently operates the Great Golden Lake (Global Geopark), Hua'An Tulou Cluster (World Culture Heritage), China Yunding (National Park), the Ming Dynasty Entertainment World and China Yang-sheng (Nourishing Life) tourist destination. For further information, please contact the Company directly, or visit its Web site at http://www.yidacn.net .

Forward-Looking Statements

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of China Yida Holding Co., Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement; (ii) the Company's ability to build and maintain the management and human resources and infrastructure necessary to support the anticipated growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov.

FINANCIAL TABLES FOLLOW

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

(UNAUDITED)

2010 2009

Net revenue

Advertisement $8,767,284 $6,592,187

Tourism 6,035,514 3,230,718

Total net revenue 14,802,799 9,822,906

Cost of revenue

Advertisement 1,826,018 1,372,523

Tourism 1,096,832 128,226

Total cost of revenue 2,922,850 1,500,750

Gross profit 11,879,949 8,322,156

Operating expenses

Selling expenses 978,584 430,647

Operating and

administrative expenses 1,283,944 1,202,198

Total operating expenses 2,262,528 1,632,845

Income from operations 9,617,421 6,689,311

Other (income) expense

Other (income) expense, net (8,853) 1,269

Interest income (8,971) (13,634)

Total other (income) expense, net (17,824) (12,364)

Income before income taxes 9,635,245 6,701,675

Provision for income taxes 2,501,196 1,730,801

Net income 7,134,049 4,970,874

Other comprehensive income

Foreign currency translation

gain (296,766) (13,028)

Other comprehensive income $6,837,283 $4,957,846

Basic net earnings per share $0.38 $0.07

Basic weighted average shares

outstanding 18,918,681 68,084,487

Diluted net earnings per

share $0.37 $0.07

Diluted weighted average

shares outstanding 19,384,447 68,084,487

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31,2010 AND DECEMBER 31, 2009

(UNAUDITED)

ASSETS

March 31, December 31,

2010 2009

Current assets

Cash and cash equivalents $31,064,720 5,776,678

Accounts receivable 7,401 2,003

Other receivable 201,463 190,424

Advances and prepayments 1,509,319 1,432,138

Total current assets 32,782,902 7,401,242

Property, and equipment, net 32,590,213 32,995,885

Construction in progress 45,623,520 36,730,184

Intangible assets, net 7,480,711 7,874,938

Long term prepayments 1,009,347 1,012,230

Total assets $119,486,694 86,014,478

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $49,802 57,277

Short term loans 1,726,130 1,731,060

Other payable 1,089,139 1,145,564

Tax payables 2,825,837 2,835,655

Total current liabilities 5,690,908 5,769,555

Long term debts 2,483,817 2,495,190

Total liabilities 8,174,725 8,264,745

Commitments and contingencies

Stockholders' equity

Common stock ($0.0001 par

value, 100,000,000 shares

authorized, 19,551,785 and

17,062,064 issued and

outstanding as of March 31,

2010 and December 31, 2009,

respectively) 1,955 1,706

Additional paid in capital 48,436,088 21,711,384

Accumulated other comprehensive

income 2,893,396 3,190,162

Retained earning 56,680,841 50,297,151

Statutory reserve 3,299,689 2,549,330

Total stockholders' equity 111,311,970 77,749,733

Total liabilities and

stockholders' equity $119,486,694 86,014,478

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

(UNAUDITED)

2010 2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income $7,134,049 $4,970,874

Adjustments to reconcile net

income to net cash

Cash provided by operating

activities:

Depreciation 367,494 354,336

Amortization 371,804 372,242

Stock based compensation 41,997 --

Changes in operating assets and

liabilities:

Accounts receivables (25,349) 50,501

Other receivables (144,364) (629,516)

Advances and prepayments (79,926) (53,686)

Accounts payable and accrued

expenses (7,314) (1,538)

Tax payable (1,743) 1,236,890

Customer deposit (344) 22,884

Accrued payroll (1,379) (11,746)

Other payable 98,560 392,545

Net cash provided by operating

activities 7,753,486 6,703,785

CASH FLOWS FROM INVESTING

ACTIVITIES

Additions to property &

equipment (55,783) (64,548)

Addition to construction in

progress (8,998,027) (7,662,370)

Net cash used in investing

activities (9,053,809) (7,726,918)

CASH FLOWS FROM FINANCING

ACTIVITIES

Issuance of shares for cash 26,682,956 --

Borrowings -- 2,167,545

Net cash provided by financing

activities 26,682,956 2,167,545

EFFECT OF EXCHANGE RATE CHANGES

ON CASH AND CASH EQUIVALENTS (94,589) 107,624

NET INCREASE IN CASH AND CASH

EQUIVALENTS 25,382,632 1,252,036

CASH AND CASH EQUIVALENTS,

BEGINNING BALANCE 5,776,678 8,715,048

CASH AND CASH EQUIVALENTS, ENDING

BALANCE $31,064,720 $9,967,084

SUPPLEMENTAL DISCLOSURES:

Cash paid during the quarter for:

Income tax payments $2,525,972 $511,212

Interest payments $70,403 $20,243

For more information, please contact:

China Yida Holding Company

George Wung CFO

Phone: +1-909-843-6358

Email: ir@yidacn.net

CCG Investor Relations

Crocker Coulson, President

Phone: +1-646-213-1915

Ed Job, CFA

Phone: +86-21-5175-7780

Email: ed.job@ccgir.com

Source: China Yida Holding Company
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