Focus Media Reports First Quarter 2009 Results
Focus Media Reports First Quarter 2009 Results
SHANGHAI, June 19 /PRNewswire-Asia/ -- Focus Media Holding Limited (NASDAQ:FMCN) , China's largest digital media group, today announced its unaudited financial results for the first quarter ended March 31, 2009.
Basis of Presentation
On December 22, 2008, the Company announced that it entered into a definitive agreement with SINA Corporation ("SINA") to sell substantially all of the assets of Focus Media's digital out-of-home advertising networks, including the LCD display network, poster frame network and certain in-store networks. The transaction is subject to customary closing conditions and certain regulatory approvals. Under the terms of the agreement, upon closing, SINA will issue 47 million newly issued ordinary shares to the Company as the consideration for the acquired assets. The Company will then distribute the SINA shares to its shareholders shortly after the closing. As a result of the above transaction, these lines of business have been accounted for as discontinued operations in accordance with U.S. GAAP. The assets to be sold to SINA as a business held-for-sale in accordance with US GAAP are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. Therefore, non-GAAP financial measure for discontinued operations in the first quarter of 2009 excluded not only the non-cash share-based compensation, acquired intangible asset amortization expense resulting from acquisitions, impairment charges of goodwill, acquired intangible assets and fixed assets but also depreciation expenses of fixed assets.
Highlights for First Quarter 2009: -- Net revenue for continuing operations was $66.7 million, declining 24% from $87.2 million for the fourth quarter of 2008 and declining 14% from $78.0 million for the first quarter of 2008 and surpassing the Company's previous guidance of no less than $55.5 million. -- Net revenue for discontinued operations was $64.4 million, a sequential decrease of 39% from $104.9 million for the fourth quarter of 2008 and decrease of 23% from $83.6 million for the first quarter of 2008 and slightly below the Company's previous guidance of no less than $65.7 million. -- Net loss from continuing operations was $17.7 million, compared to net loss from continuing operations of $424.5 million for the fourth quarter of 2008 and net income from continuing operations of $1.0 million for the first quarter of 2008. -- Non-GAAP net income from continuing operations was $3.3 million, compared to non-GAAP net income from continuing operations of $5.0 million for the fourth quarter of 2008 and non-GAAP net income from continuing operations of $10.0 million for the first quarter of 2008. -- Net income from discontinued operations was $12.0 million, compared to net loss from discontinued operations of $380.3 million for the fourth quarter of 2008 and net loss from discontinued operations of $54.6 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The Company historically recorded $8.8 million and $5.5 million of depreciation expenses for the fourth quarter of 2008 and the first quarter of 2008, respectively, in discontinued operations. -- Non-GAAP net income from discontinued operations was $15.3 million, compared to non-GAAP net income from discontinued operations of $42.7 million for the fourth quarter of 2008 and non-GAAP net income from discontinued operations of $35.0 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The Company has historically recorded $8.8 million and $5.5 million of depreciation for the fourth quarter of 2008 and the first quarter of 2008, respectively, in discontinued operations. -- Net loss attributable to shareholders was $5.7 million or a loss of $0.04 per fully diluted ADS, compared to net loss attributable to shareholders of $802.5 million for the fourth quarter of 2008 or a loss of $6.24 per fully diluted ADS and net loss attributable to shareholders of $53.8 million for the first quarter of 2008 or a loss of $0.42 per fully diluted ADS. -- Capital expenditures were $6.0 million, all attributable to discontinued operations. -- Earn-out payments for continuing operations and discontinued operations were $1.9 million and $4.5 million respectively. -- Bad debt provision for continuing operations was $1.8 million and for discontinued operations was $5.5 million. -- The Company has decided to cease expansion of its digital poster frame network in light of uncertain demand for our advertising services. We don't expect to renew the expansion of our digital poster frame network in predictable future. As part of assets to be sold to SINA, in accordance with US GAAP, the company did not perform recoverability test for this asset. The net book value of the asset amounts to $23.6 million. -- We plan to cease operation of our advertising platform (a boat owned and operated by us) on Huang Pu River in compliance to a rule promulgated by Shanghai Municipal Government. The net book value of the boat is $12.4 million. First Quarter 2009 balance sheet results -- Cash and cash equivalents for continuing operations were $131.9 million, a 7% decline from $142.4 million as of December 31, 2008. -- Cash and cash equivalents for discontinued operations were $271.7 million, a 3% decline from $280.5 million as of December 31, 2008. -- Accounts receivable for continuing operations was 117.3 million as of March 31, 2009, a 13% decline from $135.3 million as of December 31, 2008, mainly due to the decline from internet division. -- Accounts receivable for discontinued operations was 122.1 million as of March 31, 2009, a 15% decline from $143.6 million as of December 31, 2008, mainly due to the decline from LCD display network. First Quarter 2009 financial results 1) For Continuing operations:
Advertising revenue from the movie theater and outdoor traditional billboard network was $19.2 million in the first quarter of 2009, representing a decrease of 11% from 21.6 million for the fourth quarter of 2008 and a 17% increase from $16.4 million for the first quarter of 2008.
Internet advertising service revenue was $47.1 million for the first quarter of 2009, a 25% decline from $62.4 million for the fourth quarter of 2008 and a slight decline of 5% from $49.6 million for the first quarter of 2008.
Non-GAAP gross profit for the movie theater and outdoor billboard networks for the first quarter of 2009 was $6.0 million, representing a 17% decline from $7.2 million for the fourth quarter of 2008 and a 25% increase from $4.8 million for the first quarter of 2008.
Non-GAAP gross profit from our Internet advertising services for the first quarter of 2009 was $10.6 million, representing a 14% decline from $12.3 million for the fourth quarter of 2008 and an 18% decline from $13.0 million for the first quarter of 2008.
Non-GAAP operating expense for continuing operations for the first quarter of 2009 was $12.0 million, representing a 18% decline from $14.6 million for the fourth quarter of 2008 and a 10% increase from $10.9 million for the first quarter of 2008.
2) For Discontinued operations:
Advertising revenue from the LCD display network was $34.4 million for the first quarter of 2009, a 41% decline from $58.6 million for the fourth quarter of 2008 and a 25% decline from $45.9 million for the first quarter of 2008.
Advertising revenue from the in-elevator poster frame network was $23.5 million for the first quarter of 2009, a 40% decline from $39.2 million for the fourth quarter of 2008 and a 20% decline from $29.2 million for the first quarter of 2008.
Advertising revenue from the in-store network was $6.3 million for the first quarter of 2009, a 6% decline from $6.7 million for the fourth quarter of 2008 and an 11% increase from $5.7 million for the first quarter of 2008.
As of March 31, 2009, the total installed base of LCD displays and digital frames in our commercial location network was 131,219 nationwide, including 125,796 displays through our directly owned networks, and 5,423 displays through our regional distributors. The total number of non-digital frames available for sale on our in-elevator poster frame network was 288,423 as of March 31, 2009. In addition, as of March 31, 2009, we had 39,546 digital frames installed in our poster frame network. The total number of displays installed in our in-store network was 42,340 as of March 31, 2009.
Non-GAAP gross profit for the LCD display network for the first quarter of 2009 was $23.2 million, representing a 47% decline from $43.5 million for the fourth quarter of 2008 and a 27% decline from $31.9 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The depreciation expense included in cost of sales for the LCD display network in the fourth quarter of 2008 and the first quarter of 2008 was $4.8 million and $2.9 million respectively.
Non-GAAP gross profit for the in-elevator poster frame network for the first quarter of 2009 was $11.2 million, representing a 53% decline from $23.8 million for the fourth quarter of 2008 and a 53% decline from $19.8 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The depreciation expense included in cost of sales for the in-elevator poster frame network in the fourth quarter of 2008 and the first quarter of 2008 was $1.8 million and $0.7 million respectively.
Non-GAAP gross profit for the in-store network for the first quarter of 2009 was $2.3 million, more than tripled $0.5 million for the fourth quarter of 2008 and compared to gross loss of $1.8 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The depreciation expense included in cost of sales for the in-store network in the fourth quarter of 2008 and the first quarter of 2008 was $1.7 million and $1.6 million respectively.
Non-GAAP operating expense for discontinued operations for the first quarter of 2009 was $22.3 million, representing a 21% increase from $18.4 million for the fourth quarter of 2008 and a 34% increase from $16.6 million for the first quarter of 2008. As explained in "basis of presentation" above, discontinued operations, as the assets to be sold to SINA as a business held-for-sale in accordance with US GAAP, are not depreciated or amortized nor are they subject to the same impairment analysis as assets held and used in continuing operations. The depreciation expense included in operating expense for discontinued operations in the fourth quarter of 2008 and the first quarter of 2008 was $0.5 million and $0.3 million respectively.
The Company historically recorded $8.8 million and $5.5 million of depreciation expenses for the first quarter of 2008 and the fourth quarter of 2008, respectively, in discontinued operations.
Business Outlook for First Quarter 2009
The Company provides the following guidance with respect to the second quarter ending June 30, 2009:
-- Net revenues from continuing operations are expected to be no less than $69.0 million; -- Net revenues from discontinued operations are expected to be no less than $81.5 million. Changes of senior management
On January 26, 2009, the Company announced that Jason Jiang, Focus Media's executive chairman, resumed his position as chief executive officer to replace Dr. Tan Zhi who continued with the Company as an executive director. On the same day, Focus Media further announced the appointment of Alex Deyi Yang as acting chief financial officer to replace Daniel Wu, who resigned to pursue other professional interests.
USE OF NON-GAAP FINANCIAL MEASURES
In addition to Focus Media's consolidated financial results under GAAP, the Company also provides Non-GAAP financial measures, including Non-GAAP gross profit, Non-GAAP net income and Non-GAAP earnings per fully diluted ADS, all excluding non-cash share-based compensation, acquired intangible asset amortization expense resulting from acquisitions, impairment charges of goodwill, acquired intangible assets and fixed assets. The Company believes that these Non-GAAP financial measures provide investors with another method for assessing Focus 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, and should refer to the reconciliation of GAAP results with Non-GAAP results in the attached financial information. The Company believes that both management and investors benefit from referring to these Non-GAAP financial measures in assessing the performance of Focus Media and when planning and forecasting future periods. The Company computes its Non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to Non-GAAP financial measures and the related reconciliation between these financial measures.
Focus Media Holding Ltd. Reconciliation of GAAP to Non-GAAP/Non-GAAP (U.S. Dollar in thousands, except percentages, share and per-share data) (Unaudited) 1) Reconciliation of GAAP gross profit and net income to Non-GAAP gross profit and net income for continuing operations. Three months ended March 31, 2009 GAAP (1) (2) (3) (4) Non-GAAP Net revenue Movie Theater & Outdoor Billboard network 19,211 19,211 Internet advertising 47,129 47,129 Others 354 354 Total 66,694 66,694 Cost of sales Movie Theater & Outdoor Billboard network 14,164 -- (972) -- -- 13,192 Internet advertising 38,143 -- (1,564) -- -- 36,579 Others 323 -- (14) -- -- 309 Total 52,630 -- (2,550) -- -- 50,080 Gross profit Movie Theater & Outdoor Billboard network 5,047 -- 972 -- -- 6,019 Internet advertising 8,986 -- 1,564 -- -- 10,550 Others 31 -- 14 -- -- 45 Total 14,064 -- 2,550 -- -- 16,614 Operating expense 30,439 (4,754) (1,912) (9,271) (2,466) 12,036 Operating income (loss) (16,375) 4,754 4,462 9,271 2,466 4,578 Net income (loss) from continuing operations (17,672) 4,754 4,462 9,271 2,466 3,281 (1). Stock-based compensation. (2). Amortization of acquired intangible assets. (3). Impairment charges of goodwill (4). One-off charges from expensing IPO expenditures as a result of termination of IPO process of Allyes. Three months ended December 31, 2008 GAAP (1) (2) (3) (4) (5) Non-GAAP Net revenue Movie Theater & Outdoor Billboard network 21,646 21,646 Internet advertising 62,406 62,406 Others 3,106 3,106 Total 87,158 87,158 Cost of sales Movie Theater & Outdoor Billboard network 15,375 -- (976) -- -- -- 14,399 Internet advertising 51,701 -- (1,573) -- -- -- 50,128 Others 3,504 -- (897) -- 248 -- 2,855 Total 70,580 -- (3,446) -- 248 -- 67,382 Gross profit (loss) Movie Theater & Outdoor Billboard network 6,271 -- 976 -- -- -- 7,247 Internet advertising 10,705 -- 1,573 -- -- -- 12,278 Others (398) -- 897 -- (248) -- 251 Total 16,578 -- 3,446 -- (248) -- 19,776 Operating expense 440,018 (5,261) (3,073) (222,587) (194,040) (436) 14,621 Operating income (loss) (423,440) 5,261 6,519 222,587 193,792 436 5,155 Net income (loss) from continuing operations (424,481) 5,261 6,519 222,587 194,297 860 5,043 (1). Stock-based compensation. (2). Amortization of acquired intangible assets. (3). Impairment charges of goodwill, acquired intangible assets and fixed assets. (4). Loss from restructuring of CGEN in-store networks and termination of wireless business and disposal of other subsidiaries and affiliates. (5). Write-off of consideration receivables resulting from the sale of previously acquired subsidiaries back to their original shareholders. Three months ended March 31, 2008 GAAP (1) (2) Non-GAAP Net revenue Movie Theater & Outdoor Billboard network 16,378 16,378 Internet advertising 49,568 49,568 Others 12,019 12,019 Total 77,965 77,965 Cost of sales Movie Theater & Outdoor Billboard network 12,535 -- (932) 11,603 Internet advertising 38,696 -- (2,164) 36,532 Others 9,942 -- (857) 9,085 Total 61,173 -- (3,953) 57,220 Gross profit Movie Theater & Outdoor Billboard network 3,843 -- 932 4,775 Internet advertising 10,872 -- 2,164 13,036 Others 2,077 -- 857 2,934 Total 16,792 -- 3,953 20,745 Operating expense 15,918 (2,837) (2,180) 10,901 Operating income (loss) 874 2,837 6,133 9,844 Net income (loss) from continuing operations 1,000 2,837 6,133 9,970 (1). Stock-based compensation (2). Amortization of acquired intangible assets 2) Reconciliation of GAAP gross profit and net income to Non-GAAP gross profit and net income for discontinued operations. Three months ended March 31, 2009 GAAP Stock-based Non-GAAP compensation Net revenue LCD display network 34,432 34,432 Poster Frame network 23,538 23,538 In-store network 6,344 6,344 Others 39 39 Total 64,353 64,353 Cost of sales LCD display network 11,521 (246) 11,275 Poster Frame network 12,345 -- 12,345 In-store network 4,052 -- 4,052 Others -- -- -- Total 27,918 (246) 27,672 Gross profit LCD display network 22,911 246 23,157 Poster Frame network 11,193 -- 11,193 In-store network 2,292 -- 2,292 Others 39 -- 39 Total 36,435 246 36,681 Operating expense 25,368 (3,105) 22,263 Operating income (loss) from discontinued operations 11,067 3,351 14,418 Net income (loss) from discontinued operations 11,998 3,351 15,349 Three months ended December 31, 2008 Tax Non- GAAP (1) (2) (3) (4) (5) effect GAAP Net revenue LCD display network 58,617 58,617 Poster Frame network 39,227 39,227 In-store network 6,739 6,739 Others 320 320 Total 104,903 104,903 Cost of sales LCD display network 16,305 (314) (859) -- -- -- -- 15,132 Poster Frame network 17,655 -- (2,257) -- -- -- -- 15,398 In-store network 6,197 -- -- -- -- -- -- 6,197 Others 29 -- (10) -- -- -- -- 19 Total 40,186 (314) (3,126) -- -- -- -- 36,746 Gross profit LCD display network 42,312 314 859 -- -- -- -- 43,485 Poster Frame network 21,572 -- 2,257 -- -- -- -- 23,829 In-store network 542 -- -- -- -- -- -- 542 Others 291 -- 10 -- -- -- -- 301 Total 64,717 314 3,126 -- -- -- -- 68,157 Operating expense 423,923 (7,069) (966) (397,156) -- (365) -- 18,367 Operating income (loss) from discontinued operations (359,206) 7,383 4,092 397,156 -- 365 -- 49,790 Net income (loss) from discontinued operations (380,256) 7,383 4,092 397,156 13,941 1,340 (914) 42,742 (1). Stock-based compensation (2). Amortization of acquired intangible assets (3). Impairment charges of goodwill, acquired intangible assets and fixed assets (4). Loss from restructuring of CGEN in-store networks and termination of wireless business and disposal of other subsidiaries and affiliates. (5). Write-off of consideration receivables resulting from the sale of previously acquired subsidiaries back to their original shareholders. Three months ended March 31, 2008 GAAP (1) (2) (3) Non-GAAP Net revenue LCD display network 45,912 45,912 Poster Frame network 29,179 29,179 In-store network 5,727 5,727 Others 2,782 2,782 Total 83,600 83,600 Cost of sales LCD display network 15,242 (304) (884) -- 14,054 Poster Frame network 11,724 -- (2,348) -- 9,376 In-store network 7,486 -- -- -- 7,486 Others 480 -- (146) -- 334 Total 34,932 (304) (3,378) -- 31,250 Gross profit (loss) LCD display network 30,670 304 884 -- 31,858 Poster Frame network 17,455 -- 2,348 -- 19,803 In-store network (1,759) -- -- -- (1,759) Others 2,302 -- 146 -- 2,448 Total 48,668 304 3,378 -- 52,350 Operating expense 23,232 (5,483) (1,169) -- 16,580 Operating income (loss) from discontinued operations 25,436 5,787 4,547 -- 35,770 Net income (loss) from discontinued operations (54,612) 5,787 4,547 79,322 35,044 (1). Stock-based compensation (2). Amortization of acquired intangible assets (3). Impairment of disposal group CONFERENCE CALL
The Company will host a conference call to discuss the first quarter 2009 results at 9:00 p.m. U.S. Eastern Time on June 21, 2009 (6:00 p.m. U.S. Pacific Time on June 21, 2009 and 9:00 a.m. Beijing/Hong Kong Time on June 22, 2009). The dial-in details for the live conference call are set forth below: U.S. Toll Free Number +1 866 700 0161, Hong Kong dial-in number +852 3002 1672, International dial-in number +1 617 213 8832; Pass code: 16559808.
A replay of the call will be available from June 21, 2009 11:00 pm until June 29, 2009 (U.S. Eastern Time). The dial-in details for the replay are set forth below: U.S. Toll Free Number +1 888-286-8010, International dial-in number +1 617-801-6888; Pass code 81067619. Additionally, a live and archived web cast of this call will be available on the Focus Media web site at http://ir.focusmedia.cn/
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, F-6 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 March 31, 2009, Focus Media's digital out-of-home advertising network had approximately 131,000 LCD display and digital frames in its commercial location network and approximately 328,000 advertising in-elevator poster and digital frames, installed in over 90 cities throughout China, and approximately 230 outdoor LED billboard displays in Shanghai and Beijing. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn/.
Focus Media Holding Limited UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in Thousands) 2009-3-31 2008-12-31 ASSETS Current assets Cash and cash equivalents 131,918 142,434 Accounts receivable, net 117,250 135,270 Inventories 34 25 Prepaid expenses and other current assets 15,048 15,117 Deposit paid for acquisition of subsidiaries 28,734 29,676 Amount due from related parties 5,603 7,913 Rental deposits 10,029 10,090 Assets held for sale-current 470,413 467,046 Total current assets 779,029 807,571 Rental deposits 119 133 Equipment, net 5,752 6,292 Acquired intangible assets, net 73,243 77,713 Goodwill 32,820 30,700 Other long term assets 8,931 10,736 Assets held for sale-non current 610,919 599,149 Total assets 1,510,813 1,532,294 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 64,254 67,905 Accrued expenses and other current liabilities 66,115 61,911 Income taxes payable 10,909 12,622 Amount due to related parties 12,020 15,687 Liabilities held for sale-current 143,426 160,739 Total current liabilities 296,724 318,864 Liabilities held for sale-non current 1,741 1,959 Deferred tax liabilities 11,578 11,581 Total liabilities 310,043 332,404 Shareholders' equity Ordinary shares 32 32 Additional paid in capital 1,668,081 1,659,833 Retained earnings (deficit) (539,662) (533,969) Accumulated other comprehensive income 70,194 71,888 Total shareholders' equity 1,198,645 1,197,784 Noncontrolling interest 2,125 2,106 Total equity 1,200,770 1,199,890 Total liabilities and shareholders' equity 1,510,813 1,532,294 Focus Media Holding Limited UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. Dollar in thousands, except Earning per ADS and ADS data) Three months ended 2009-3-31 2008-12-31 2008-3-31 Revenues Movie Theater & Outdoor Billboard network 19,846 22,380 17,075 Internet advertising 48,940 64,622 51,450 Others 370 3,428 13,264 Total gross revenues 69,156 90,430 81,789 Business Tax 2,462 3,272 3,824 Net revenue 66,694 87,158 77,965 Cost of revenues Movie Theater & Outdoor Billboard network 13,040 14,399 11,602 Internet advertising 36,579 50,128 36,532 Others 461 2,606 9,086 Amortization of acquired intangible assets 2,550 3,447 3,953 Total cost of revenues 52,630 70,580 61,173 Gross profit 14,064 16,578 16,792 Operating expenses General and administrative 14,051 16,750 8,460 Selling and marketing 8,023 10,253 7,634 Impairment loss 9,271 222,587 -- Loss from CGEN restructuring -- 190,466 -- Other operating income (906) (38) (176) Total operating expenses 30,439 440,018 15,918 Operating income (loss) (16,375) (423,440) 874 Non-operating expenses (income) (416) 4,119 (882) Income (loss) from continuing operations before income taxes (15,959) (427,559) 1,756 Provision from income taxes (1,713) 3,078 (756) Net income (loss) from continuing operations (17,672) (424,481) 1,000 Net income (loss) from discontinued operations, net of tax 11,998 (380,256) (54,612) Net Loss (5,674) (804,737) (53,612) Less: Net income (loss) attributable to noncontrolling interest 19 (2,246) 198 Net loss attributable to shareholders (5,693) (802,491) (53,810) Income (Loss) per ADS from continuing operations - basic & diluted (0.13) (3.28) 0.01 Income (Loss) per ADS from discontinued operation - basic & diluted 0.09 (2.96) (0.43) Loss per ADS-basic & diluted - basic & diluted (0.04) (6.24) (0.42) Shares used in calculating basic income/(loss) per ADS 129,218,960 128,607,842 128,049,333 Shares used in calculating diluted income/(loss) per ADS 129,218,960 128,607,842 131,394,654 FOCUS MEDIA HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS (U.S. Dollar in thousands) Three months ended 2009-3-31 2008-12-31 2008-3-31 Operating activities: Net loss (5,674) (804,737) (53,612) Adjustments to reconcile net income/ (loss) to net cash provided by operating activities: Bad debt provision 7,280 8,597 1,415 Share-based compensation 8,105 12,644 8,624 Depreciation and amortization 493 9,623 6,481 Amortization of acquired intangible assets 4,462 10,611 10,680 Changes in assets and liabilities, net of effects of acquisitions 1,254 23,070 (45,294) Realized gain on disposal of available-for-sale securities (103) (415) -- Investment income from an equity method investee (51) (427) -- (Gain)/loss on disposal of subsidiaries (240) 189,441 -- Gain on earn out payment renegotiation (1,052) -- -- Loss on disposal of an equity method investment -- 437 -- Impairment provisions for goodwill, acquired intangible assets and fixed assets 9,271 634,420 79,322 Loss on disposal of equipment 117 304 -- Net cash provided by operating activities 23,862 83,568 7,616 Investing activities: Purchase of equipment and other long term assets (6,026) (7,106) (18,795) Acquisition of an intangible asset -- -- (1,767) Purchase of subsidiaries, net of cash acquired (6,353) (14,775) (84,989) Deposits paid to acquire subsidiaries -- -- (13,369) Disposal of subsidiaries (584) -- -- Purchase of a short-term investment (29,257) -- -- Purchase of available-for--sale securities -- -- (37,688) Proceeds from sale of available-for-sale securities 688 7,365 -- Net cash used in investing activities (41,532) (14,516) (156,608) Financing activities: Proceeds from issuance of ordinary shares, net of issuance costs 143 1,535 4,503 Share repurchase -- (17,502) -- Proceeds from short-term debts -- -- 370 Capital injection from minority shareholders -- -- 214 Repayment of short-term debts -- -- (30,041) Net cash provided by/(used in) financing activities 143 (15,967) (24,954) Effect of exchange rate changes (1,807) (3,341) 19,498 Net (decrease) increase in cash and cash equivalents (19,334) 49,744 (154,448) Cash and cash equivalents, beginning of period 422,916 373,172 450,416 Cash and cash equivalents, end of period 403,582 422,916 295,968 Supplemental disclosure of cash flow information: Income taxes paid 4,853 8,728 1,790 Supplemental disclosure of non-cash investing activity: Acquisition of subsidiaries: Value of ordinary share consideration -- 500 -- Accounts payable 73,147 60,501 25,247
Source: Focus Media Holding Limited
CONTACT: Investor and Media contact: Jing Lu, +86-21-2216-4155, or
ir@focusmedia.cn
Web site: http://ir.focusmedia.cn/
Profile: International Entertainment
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