SHANGHAI, June 19, 2009 /PRNewswire-Asia via COMTEX/ -- 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
http://ir.focusmedia.cn
