BEIJING, April 9, 2013 /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, 2012.
Key Quarterly Financial and Operating Data for the Fourth Quarter of 2012
Total revenues in the fourth quarter of 2012 were $26.1 million.
Gross loss in the fourth quarter of 2012 was $40,898.
Operating loss in the fourth quarter of 2012 was $16.4 million.
Net loss attributable to VisionChina Media shareholders in the fourth quarter of 2012 was $17.5 million.
In the fourth quarter of 2012, the Company's non-GAAP financial measure, net loss attributable to VisionChina Media shareholders excluding share-based compensation expenses and provision for contingent loss in connection with litigation, and if any, amortization of intangible assets, impairment loss and income tax credit in connection with the impairment loss (non-GAAP), was $15.3 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $12.7 million in the third quarter of 2012.
Basic and diluted net loss per American Depository Share ("ADS") attributable to VisionChina Media shareholders in the fourth quarter of 2012 was $3.45 and $3.45, respectively (one ADS[1] represents twenty ordinary shares), compared to basic and diluted net loss per ADS attributable to VisionChina Media shareholders of $2.82 and $2.82, respectively, in the third quarter of 2012.
The Company had cash and cash equivalents of $29.0 million as of December 31, 2012. Net cash provided by operating activities was $5.2 million in the fourth quarter of 2012, compared to net cash used in operating activities of $26.2 million in the third quarter of 2012.
Total broadcasting hours in the Company's network in the fourth quarter of 2012 were 39,930 hours, compared to the total broadcasting hours of 40,963 hours in the third quarter of 2012.
As of December 31, 2012, the Company's network covered 19 cities, secured either by exclusive agency agreements or joint venture contracts, and included 108,567 digital displays on mass transit systems.
Average advertising revenue per broadcasting hour on the Company's network in the fourth quarter of 2012 was $581.
The Company sold an average of 5.91 advertising minutes per broadcasting hour on its network in the fourth quarter of 2012.
[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. |
Full-Year 2012 Highlights
Total revenues were $115.7 million in the full-year 2012, of which advertising service revenue was $114.7 million.
Gross loss in the full-year 2012 was $6.1 million.
Operating loss in the full-year 2012 was $252.3 million, including a $178.8 million non-cash impairment charge, 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.
Net loss attributable to VisionChina Media shareholders in the full-year 2012 was $246.4 million.
The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2012 was $66.6 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $2.2 million in the full-year 2011.
Basic and diluted net loss per ADS attributable to VisionChina Media shareholders in the full-year 2012 were $48.62 and $48.62, respectively, compared to basic and diluted net loss per ADS attributable to VisionChina Media shareholders in the full-year 2011 of $2.50 and $2.50, respectively.
Total broadcasting hours in the Company's network were 162,917 hours in the full-year 2012, compared to 175,498 hours in the full-year 2011.
The Company sold an average of 6.53 advertising minutes per broadcasting hour in the full-year 2012, compared to an average of 8.78 advertising minutes per broadcasting hour in the full-year 2011.
Average advertising service revenue per broadcasting hour in the full-year 2012 was $667, compared to $1,002 in the full-year 2011.
Mr. Limin Li, VisionChina Media's chairman and chief executive officer, commented, "The fourth quarter of 2012 was marked by lingering uncertainty regarding China's overall economy. We have been able to effectively lower our costs in order to improve our operational efficiency and competitive position. With our recently announced five-year cooperation agreement with the Chinese Football Association Super League and the addition of new management personnel, we will continue to increase our strengths in content-related advertising products, event marketing and technological innovation, which improve the advertising effectiveness of our platform and yield greater return to our advertisers. These transitional strategies will also allow us to efficiently utilize our advertising inventories. Although we may encounter short-term challenges during this transitional period, we are confident that our strategy will ultimately strengthen our core competencies and deliver value to our shareholders. We expect to see positive and healthy rewards later this year despite a first quarter that typically shows seasonal weakness."
Stanley Wang, VisionChina Media's chief financial officer, added, "In the fourth quarter, we managed to sequentially decrease our media cost, and we will continue with our cost-control efforts in the 2013 year in order to improve our operating margin."
Fourth Quarter 2012 Results
VisionChina Media's total revenues were $26.1 million in the fourth quarter of 2012, representing a decrease of 51.0% from $53.4 million in the fourth quarter of 2011 and a decrease of 21.2% from $33.2 million in the third quarter of 2012. Advertising service revenue, which accounted for 97.4% of total revenues in the fourth quarter of 2012, was $25.5 million, representing a decrease of 50.7% compared to the fourth quarter of 2011 and a decrease of 22.8% compared to the third quarter of 2012. Several factors led to the Company's decrease in advertising service revenue, including declining revenue contribution from the internet-based businesses sector, and pull-back in advertising spending after the Summer Olympics in the third quarter of 2012.
Total broadcasting hours in the fourth quarter of 2012 were 39,930 hours, compared to 41,463 hours in the fourth quarter of 2011 and 40,963 hours in the third quarter of 2012.
Average advertising revenue per broadcasting hour was $581 in the fourth quarter of 2012, compared to $1,217 in the fourth quarter of 2011 and $748 in the third quarter of 2012.
In the fourth quarter of 2012, the Company sold a total of 235,794 advertising minutes in its network, compared to 370,998 advertising minutes in the fourth quarter of 2011 and 299,510 advertising minutes in the third quarter of 2012.
The Company sold an average of 5.91 advertising minutes per broadcasting hour in the fourth quarter of 2012, compared to 8.95 advertising minutes per broadcasting hour in the fourth quarter of 2011 and 7.31 advertising minutes per broadcasting hour in the third quarter of 2012.
During the fourth quarter of this year, 533 advertisers purchased advertising time on the Company's advertising network, either directly or through advertising agents, compared to 676 advertisers in the fourth quarter of 2011 and 577 advertisers in the third quarter of 2012.
Media cost, the most significant component of advertising service cost, was $20.0 million in the fourth quarter of 2012, a decrease of 18.8% from 24.6 million of the fourth quarter of 2011 and a decrease of 13.5% from 23.1 million of the third quarter of 2012.
Gross loss in the fourth quarter of 2012 was $40,898, compared to gross profit of $21.4 million in the fourth quarter of 2011 and gross profit of $3.4 million in the third quarter of 2012.
Advertising service gross margin was negative 1.8% in the fourth quarter of 2012, compared to gross margin of 40.9% in the fourth quarter of 2011 and gross margin of 9.8% in the third quarter of 2012.
Selling and marketing expenses were $9.0 million in the fourth quarter of 2012, representing a decrease of 38.2% from $14.5 million in the fourth quarter of 2011 and a decrease of 9.2% from $9.9 million in the third quarter of 2012. Selling and marketing expenses accounted for 35.2% of the Company's advertising service revenue in the fourth quarter of 2012, compared to 28.1% in the fourth quarter of 2011 and 30.0% in the third quarter of 2012.
General and administrative expenses were $5.5 million in the fourth quarter of 2012, representing an increase of 34.0% from $4.1 million in the fourth quarter of 2011 and an increase of 11.5% from $4.9 million in the third quarter of 2012. The increase in general and administrative expenses is primarily attributable to an increase in legal fees in connection with pending litigation involving the selling shareholders and former management of Digital Media Group Company Limited ("Digital Media Group").
The Company recorded a contingent loss of $2.0 million in the fourth quarter of 2012 in connection with the pending litigation involving the selling shareholders and former management of Digital Media Group, compared to $0.7 million in the fourth quarter of 2011 and $1.4 million in the third quarter of 2012.
Operating loss was $16.4 million in the fourth quarter of 2012, compared to operating profit of $2.4 million in the fourth quarter of 2011 and operating loss of $12.6 million in the third quarter of 2012.
The Company recorded a net interest expense of $0.5 million in the fourth quarter of 2012, compared to net interest expense of $1.0 million in the fourth quarter of 2011 and net interest expense of $0.8 million in the third quarter of 2012.
The Company recorded income tax expenses of $1.1 million in the fourth quarter of 2012, compared to income tax benefits of $0.3 million in the fourth quarter of 2011 and income tax expenses of $0.9 million in the third quarter of 2012.
Net loss attributable to VisionChina Media shareholders (GAAP) was $17.5 million in the fourth quarter of 2012, compared to net income attributable to VisionChina Media shareholders of $1.7 million in the fourth quarter of 2011 and net loss attributable to VisionChina Media shareholders of $14.3 million in the third quarter of 2012.
Basic and diluted net loss per ADS was $3.45 and $3.45, respectively, in the fourth quarter of 2012.
The Company's non-GAAP financial measure, net loss attributable to VisionChina Media shareholders, excluding share-based compensation expenses and provision for contingent loss in connection with litigation, and if any, amortization of intangible assets, impairment loss and income tax credit in connection with the impairment loss (non-GAAP) was $15.3 million in the fourth quarter of 2012, compared to non-GAAP net income attributable to VisionChina Media shareholders of $4.1 million in the fourth quarter of 2011 and non-GAAP net loss attributable to VisionChina Media shareholders of $12.7 million in the third quarter of 2012.
As of December 31, 2012, the Company had 108,567 digital television displays in its network, compared to 137,423 as of December 31, 2011 and 107,821 as of September 30, 2012.
As of December 31, 2012, the Company had 715 employees, compared to 829 employees as of December 31, 2011 and 763 employees as of September 30, 2012.
The Company had cash and cash equivalents of $29.0 million as of December 31, 2012, compared to $63.1 million as of September 30, 2012. The Company repaid $37.0 million in bank borrowing in the fourth quarter of 2012. Net cash provided by operating activities was $5.2 million in the fourth quarter of 2012, compared to net cash used in operating activities of $26.2 million in the third quarter of 2012.
Depreciation and amortization was $1.2 million and capital expenditures were $0.3 million in the fourth quarter of 2012.
Full-Year 2012 Results
Total revenues in the full-year 2012 were $115.7 million, a decrease of 36.2% from $181.2 million in the full-year 2011. Advertising service revenue, which accounted for 99.2% of total revenues in the full-year 2012, was $114.7 million, representing a decrease of 36.0% from $179.4 million in the full-year 2011.
Media cost, the most significant component of advertising service cost, was $97.1 million in the full-year 2012, representing 79.8% of total advertising service cost, compared to $103.0 million, or 81.1% of total advertising service cost in the full-year 2011.
Gross loss in the full-year 2012 was $6.1 million, compared to gross profit of $52.6 million in the full-year 2011. Advertising service gross margin was negative 5.8% in the full-year 2012, compared to 29.2% in the full-year 2011.
Selling and marketing expenses in the full-year 2012 were $43.0 million, compared to $44.9 million in the full-year 2011.
General and administrative expenses in the full-year 2012 were $18.4 million, compared to $13.2 million in the full-year 2011. The increase was primarily attributable to the increase in legal fees in connection with pending litigation with the selling shareholders and former management of Digital Media Group.
Operating loss in the full-year 2012 was $252.3 million, compared to an operating loss of $10.4 million in the full-year 2011. 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 $1.9 million in the full-year 2012, compared to net interest expense of $3.0 million in the full-year 2011.
The Company recorded an income tax benefit of $7.5 million in the full-year 2012, compared to an income tax benefit of $0.8 million in the full-year 2011. The income tax benefit recorded in the full-year 2012 included tax credits of $9.1 million in connection with the aforementioned impairment loss on intangible assets.
Net loss attributable to VisionChina Media shareholders in the full-year 2012 was $246.4 million, compared to net loss attributable to VisionChina Media shareholders of $12.5 million in the full-year 2011. Basic and diluted net loss per ADS attributable to VisionChina Media shareholders, in the full-year 2012, was $48.62 and $48.62 respectively.
The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2012 was $66.6 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $2.2 million (non-GAAP) in the full-year 2011.
The Company experienced a net loss of $246.4 million in the year ended December 31, 2012. As of December 31, 2012, the Group had net current assets of $0.7 million and cash and cash equivalent of $29 million. The Company has developed and implemented liquidity plan including obtaining new credit facilities, utilizing available facilities to roll forward short-term borrowings, negotiating with certain suppliers of concession rights for price reduction, and adopting strict control of operating activities and investing activities of the Company. Starting in the fourth quarter of 2012, the Company has started to cut down capital expenditure, operating expenditure and improving operating cash flow, and will continue to implement such cost-cutting initiatives in 2013. As of today, the Company had secured approximately $24.0 million in credit facilities which can be utilized in 2013. To improve the liquidity, the Company will continue to obtain additional finance.
Recent Developments
Conference Call
VisionChina Media's management will hold an earnings conference call at 8:00 p.m. U.S. Eastern Time on April 8, 2013 (8:00 a.m. Beijing/Hong Kong Time on April 9, 2013).
Dial-in details for the earnings conference call are as follows:
U.S. Toll Free: +1-866-519-4004
U.S. Toll: +1-718-354-1231
Hong Kong Toll: +852-2475-0994
International Toll: +65-6723-9381
Passcode for all regions: VisionChina Earnings Call
A replay of the conference call may be accessed by phone at the following numbers until April 16, 2013.
U.S. Toll Free: +1-855-452-5696
U.S. Toll: +1-646-254-3697
International Toll: +61-2-8199-0299
Passcode for all regions: 26180751
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, 2012, VisionChina Media's advertising network included 108,567 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. Sharon Wu
VisionChina Media Inc.
Tel: +86-189-2677-2096
E-mail: sharon.wu@visionchina.cn
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
Email: colin.wang@visionchina.cn
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
E-mail: visn@ogilvy.com
VISIONCHINA MEDIA INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Amounts in thousand U.S. dollars) | ||||||
December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||
(Unaudited) | (Unaudited) | (Note 1) | ||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 29,012 | 63,071 | 80,310 | |||
Restricted cash | 14,533 | 13,118 | 3,306 | |||
Accounts receivable, net | 36,743 | 47,436 | 66,284 | |||
Amounts due from related parties | 2,104 | 1,709 | 2,444 | |||
Prepaid expenses and other current assets | 26,808 | 30,405 | 34,278 | |||
Total current assets | 109,200 | 155,739 | 186,622 | |||
Non-current Assets: | ||||||
Fixed assets, net | 10,782 | 11,233 | 13,638 | |||
Goodwill | - | - | 141,406 | |||
Intangible assets | 367 | 361 | 39,537 | |||
Investments under equity method | 7,305 | 7,345 | 7,201 | |||
Other investments | 3,045 | 3,037 | 3,021 | |||
Long-term prepayments and deposits | 17,537 | 20,420 | 19,896 | |||
Restricted cash | 1,115 | 1,111 | 1,102 | |||
Deferred tax assets | 444 | 1,470 | 2,718 | |||
Total non-current assets | 40,595 | 44,977 | 228,519 | |||
TOTAL ASSETS | 149,795 | 200,716 | 415,141 | |||
LIABILITIES AND EQUITY | ||||||
Current Liabilities: | ||||||
Short-term bank loans | 8,998 | 46,766 | 20,465 | |||
Accounts payable | 7,744 | 7,842 | 16,149 | |||
Amounts due to related parties | 1,828 | 1,959 | 1,416 | |||
Consideration payable | 64,000 | 64,000 | 64,000 | |||
Income tax payable | 24 | 20 | 118 | |||
Accrued expenses and other current liabilities | 26,210 | 22,132 | 18,814 | |||
Total current liabilities | 108,804 | 142,719 | 120,962 | |||
Non-current Liabilities: | ||||||
Deferred tax liabilities | - | - | 9,808 | |||
Other non-current liabilities | 977 | 974 | 969 | |||
Total non-current liabilities | 977 | 974 | 10,777 | |||
Total liabilities | 109,781 | 143,693 | 131,739 | |||
Equity: | ||||||
Common shares | 10 | 10 | 10 | |||
Additional paid-in capital | 342,671 | 342,514 | 341,963 | |||
Accumulated deficit | (340,138) | (322,659) | (93,729) | |||
Accumulated other comprehensive income | 37,372 | 37,030 | 34,940 | |||
Total VisionChina Media Inc. shareholders' equity | 39,915 | 56,895 | 283,184 | |||
Noncontrolling interest | 99 | 128 | 218 | |||
Total equity | 40,014 | 57,023 | 283,402 | |||
TOTAL LIABILITIES AND EQUITY | 149,795 | 200,716 | 415,141 | |||
Note 1: Information extracted from the audited consolidated financial statements included in the Company's 2011 annual report on Form | ||||||
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, 2012 | September 30, 2012 | December 31, 2011 | |||
(Unaudited) | (Unaudited) | (Unaudited) | |||
Revenues: | |||||
Advertising service revenue | 25,457 | 32,957 | 51,597 | ||
Other revenue | 672 | 221 | 1,778 | ||
Total revenues | 26,129 | 33,178 | 53,375 | ||
Cost of revenues: | |||||
Advertising service cost | (25,909) | (29,729) | (30,501) | ||
Other cost | (261) | (56) | (1,494) | ||
Total cost of revenues | (26,170) | (29,785) | (31,995) | ||
Gross (loss)/profit | (41) | 3,393 | 21,380 | ||
Operating expenses: | |||||
Selling and marketing expenses | (8,968) | (9,875) | (14,522) | ||
General and administrative expenses | (5,454) | (4,892) | (4,070) | ||
Contingent loss in connection with a litigation | (2,043) | (1,411) | (675) | ||
Total operating expenses | (16,465) | (16,178) | (19,267) | ||
Share of (loss) profits from equity method investees | (61) | 213 | (108) | ||
Dividend income from cost method investments | 162 | - | 142 | ||
Income from partial disposal of interest of a subsidiary | - | - | 227 | ||
Operating (loss) profit | (16,405) | (12,572) | 2,374 | ||
Interest income | 141 | 210 | 51 | ||
Interest expense | (642) | (1,028) | (1,071) | ||
Other income (expenses) | 455 | (92) | (18) | ||
Net (loss) income before income taxes | (16,451) | (13,482) | 1,336 | ||
Income tax (expenses) benefits | (1,057) | (860) | 303 | ||
Net loss | (17,508) | (14,342) | 1,639 | ||
Net loss attributable to noncontrolling interest | 29 | 29 | 29 | ||
Net loss attributable to VisionChina Media Inc. shareholders | (17,479) | (14,313) | 1,668 | ||
Net loss per share: | |||||
Basic | (0.17) | (0.14) | 0.02 | ||
Diluted | (0.17) | (0.14) | 0.02 | ||
Net loss per ADS (1): | |||||
Basic | (3.45) | (2.82) | 0.33 | ||
Diluted | (3.45) | (2.82) | 0.33 | ||
Weighted average number of shares used in computation of net loss per share: | |||||
Basic | 101,373,145 | 101,372,240 | 101,327,916 | ||
Diluted | 101,373,145 | 101,372,240 | 101,327,916 | ||
Weighted average number of ADS used in computation of net loss per ADS: | |||||
Basic | 5,068,657 | 5,068,612 | 5,066,396 | ||
Diluted | 5,068,657 | 5,068,612 | 5,066,396 | ||
Share-based compensation expenses during the related periods included in: | |||||
Cost of revenues | (13) | (13) | (13) | ||
Selling and marketing expenses | (95) | (96) | (104) | ||
General and administrative expenses | (50) | (53) | (57) | ||
Total | (158) | (162) | (174) | ||
Reconciliation from GAAP net (loss) income attributable to VisionChina Media | |||||
Net (loss) income attributable to VisionChina Media Inc. shareholders (GAAP) | (17,479) | (14,313) | 1,668 | ||
Add back share-based compensation expenses | 158 | 162 | 174 | ||
Add back amortization of intangible assets | - | - | 1,541 | ||
Add back contingent loss in connection with a litigation | 2,043 | 1,411 | 675 | ||
Net (loss) income attributable to VisionChina Media Inc. shareholders (Non-GAAP) | (15,278) | (12,740) | 4,058 | ||
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 | |||||
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, 2012 | December 31, 2011 | ||
(Unaudited) | (Note 1) | ||
Revenues : | |||
Advertising service revenue | 114,741 | 179,416 | |
Other revenue | 926 | 1,778 | |
Total revenues | 115,667 | 181,194 | |
Cost of revenues : | |||
Advertising service cost | (121,374) | (127,058) | |
Other cost | (345) | (1,494) | |
Total cost of revenues | (121,719) | (128,552) | |
Gross (loss)/profit | (6,052) | 52,642 | |
Operating expenses : | |||
Selling and marketing expenses | (42,980) | (44,916) | |
General and administrative expenses | (18,394) | (13,207) | |
Other operating expense | - | (2,141) | |
Impairment loss | (178,814) | - | |
Contingent loss in connection with a litigation | (6,275) | (3,375) | |
Total operating expenses | (246,463) | (63,639) | |
Share of profits from equity method investees | 46 | 231 | |
Dividend income from cost method investments | 162 | 142 | |
Income from partial disposal of interest of a subsidiary | - | 176 | |
Operating loss | (252,307) | (10,448) | |
Interest income | 696 | 1,711 | |
Interest expense | (2,615) | (4,717) | |
Other income | 151 | 42 | |
Net loss before income taxes | (254,075) | (13,412) | |
Income tax benefit | 7,547 | 794 | |
Net loss | (246,528) | (12,618) | |
Net loss attributable to noncontrolling interest | 119 | 115 | |
Net loss attributable to VisionChina Media Inc. shareholders | (246,409) | (12,503) | |
Net loss per share: | |||
Basic | (2.43) | (0.12) | |
Diluted | (2.43) | (0.12) | |
Net loss per ADS (2): | |||
Basic | (48.62) | (2.45) | |
Diluted | (48.62) | (2.45) | |
Weighted average number of shares used in computation of net loss per share: | |||
Basic | 101,351,222 | 102,047,414 | |
Diluted | 101,351,222 | 102,047,414 | |
Weighted average number of ADS used in computation of net loss per ADS: | |||
Basic | 5,067,561 | 5,102,371 | |
Diluted | 5,067,561 | 5,102,371 | |
Share-based compensation expenses during the related periods included in: | |||
Cost of revenues | (53) | (58) | |
Selling and marketing expenses | (395) | (449) | |
General and administrative expenses | (221) | (310) | |
Total | (669) | (817) | |
Reconciliation from GAAP net loss attributable to VisionChina Media Inc. | |||
Net loss attributable to VisionChina Media Inc. shareholders (GAAP) | (246,409) | (12,503) | |
Add back share-based compensation expenses during the related periods | 669 | 817 | |
Add back amortization of intangible assets during the related periods | 3,106 | 6,071 | |
Add back provision for contingent loss in connection with a litigation | 6,275 | 3,375 | |
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) | (66,647) | (2,240) | |
Note 1: Information extracted from the audited consolidated financial statements included in the Company's 2011 annual report on Form 20-F | |||
Note 2: ADS amounts adjusted for a change in the ratio of the Company's American Depositary Shares ("ADSs") to ordinary shares ("Shares") | |||
