SHANGHAI, Dec. 10 /PRNewswire-Asia/ -- Focus Media Holding Limited (Nasdaq: FMCN), China's largest digital media group, today announced the following corrections to the financial results for the third quarter ended September 30, 2009.
1) Balance Sheets:
The line:
Deposit paid for acquisition of
subsidiaries 5,914 21,859
should be deleted.
2) Cashflows:
The line:
Loss from impairment of certain other
assets 7,285 --
should be deleted.
Neither correction affects the totals of the balance sheet or cash flow statement.
A corrected version of Balance Sheets and Cashflows is as follows:
Focus Media Holding Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in Thousands)
2009-9-30 2009-6-30
ASSETS
Current assets
Cash and cash equivalents 383,107 96,186
Hold-to-maturity investment 29,287 --
Accounts receivable, net 222,070 121,544
Prepaid expenses and other current assets 19,800 13,537
Amount due from related parties 8,717 7,638
Rental deposits 32,433 9,115
Other current assets 7,234 21,894
Available-for-sale assets, current -- 475,531
Total current assets 702,648 745,445
Rental deposits 5,657 114
Equipment, net 84,916 5,438
Acquired intangible assets, net 71,234 63,631
Goodwill 422,329 35,507
Other long term assets 14,468 7,080
Available-for-sale assets, non-current -- 615,751
Total assets 1,301,252 1,472,966
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 85,477 68,676
Accrued expenses and other current
liabilities 102,305 71,242
Income taxes payable 24,703 12,939
Amount due to related parties 10,585 14,491
Available-for-sale liabilities, current -- 108,086
Deferred tax liabilities 447 --
Total current liabilities 223,517 275,434
Available-for-sale liabilities, non-current -- 1,853
Deferred tax liabilities 9,635 10,146
Total liabilities 233,152 287,433
Shareholders' equity
Ordinary shares 32 32
Additional paid in capital 1,689,630 1,678,667
Accumulated deficit (690,232) (562,632)
Accumulated other comprehensive income 65,434 67,751
Total shareholders' equity 1,064,864 1,183,818
Noncontrolling interests 3,236 1,715
Total equity 1,068,100 1,185,533
Total liabilities and shareholders' equity 1,301,252 1,472,966
FOCUS MEDIA HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
(U.S. Dollar in thousands)
Three months ended
2009-9-30 2009-6-30 2008-9-30
Operating activities:
Net loss (124,639) (22,748) 52,250
Adjustments to reconcile net
income/(loss) to net cash
provided by operating activities:
Bad debt provision 7,602 11,240 5,923
Share-based compensation 8,773 10,586 10,810
Depreciation and amortization 26,353 671 8,150
Amortization of acquired intangible
assets 13,864 4,280 9,262
Loss and impairment on disposal of
equity interest of subsidiaries
and certain other assets 25,944 115 --
Gain on earn out payment
renegotiation -- 1,052 --
Impairment charges for goodwill,
acquired intangible assets and
fixed assets 96,134 33,938 --
Loss on disposal of fixed assets 955 113 405
Changes in assets and liabilities,
net of effects of acquisitions (18,199) (11,433) (51,381)
Net cash provided by operating
activities 36,786 27,814 35,418
Investing activities:
Purchase of equipment and other
long term assets (854) (2,787) (17,028)
Purchase of subsidiaries, net of
cash acquired (5,311) (61,446) (14,429)
Investment in a joint venture -- -- (2,970)
Deposits paid to acquire
subsidiaries -- -- (901)
Disposal of subsidiaries (17,403) -- --
Sales /(purchase) of equity
securities and bank notes 324 (146) 39,025
Proceeds received from disposal of
fixed assets -- 195 --
Net cash provided /(used) in
investing activities (23,244) (64,184) 3,697
Financing activities:
Proceeds from issuance of ordinary
shares, net of issuance costs 1,919 -- 1,822
Repurchase of ordinary shares -- -- (29,998)
Net cash provided by/(used in)
financing activities 1,919 -- (28,176)
Effect of exchange rate changes (238) 672 717
Net increase (decrease) in cash and
cash equivalents 15,223 (35,698) 11,656
Cash and cash equivalents,
beginning of period 367,884 403,582 361,516
Cash and cash equivalents, end of
period 383,107 367,884 373,172
Supplemental disclosure of cash
flow information:
Income taxes paid 1,597 3,728 6,037
Supplemental disclosure of non-cash
investing activity:
Acquisition of subsidiaries:
Accounts payable 16,967 1,842 14,777
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the 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. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3 and 20-F, in each case as amended. Focus Media does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
ABOUT FOCUS MEDIA HOLDING LIMITED
Focus Media Holding Limited (Nasdaq: FMCN) is China's leading multi-platform digital media company, operating the largest out-of-home advertising network in China using audiovisual digital displays, based on the number of locations and number of flat-panel television displays in our network. Through Focus Media's multi-platform digital advertising network, the company reaches urban consumers at strategic locations and point-of-interests over a number of media formats, including audiovisual television displays in buildings and stores, advertising poster frames and other new and innovative media, such as outdoor light-emitting diode or LED digital billboard and Internet advertising platforms. As of September 30, 2009, Focus Media's digital out-of-home advertising network had approximately 125,000 LCD display in its LCD display network and approximately 262,000 advertising in-elevator poster and digital frames, installed in over 90 cities throughout China, and approximately 130 outdoor LED billboard displays in Shanghai and Beijing. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn .
