SHANGHAI, Nov. 27, 2012 /PRNewswire/ -- Focus Media Holding
Limited (Nasdaq: FMCN) today announced its unaudited financial
results for the third quarter ended September 30, 2012.
Highlights for Third Quarter 2012:
- Total net revenue for the third quarter of 2012 was
$256.3 million, of which
- aggregate net revenues from the LCD display network, in-store
network, poster frame network and movie theater network was
$247.7 million, which exceeded by
approximately 2% the mid-point of the Company's guidance range of
$241-$243 million. This
represented a year-on-year increase of 26% from $196.1 million for the third quarter of 2011 and
a quarter-on-quarter increase of 13% from $219.3 million for the second quarter of
2012;
- net revenue from the traditional outdoor billboard network for
the third quarter of 2012 was $8.6
million, below the guidance of $13-$14 million which was primarily due to
classification of the revenues of a number of subsidiaries into
"Net income from discontinued operations". Due to
medium term advertising spending uncertainties and the continued
view of the Company that the traditional outdoor billboard network
is not a core business segment, the Company has decided to downsize
this business segment by divesting of four entities within the
segment. Two of which have been divested prior to end of this third
quarter while the remaining two are expected to be completed before
the end of 2012. Consequently, the revenues of these four entities
are reclassified into "Net income from discontinued operations" in
statements of income.
- GAAP net income attributable to Focus Media for the third
quarter of 2012 was $64.6 million,
representing a year-on-year increase of 4% from $62.2 million for the third quarter of 2011 and a
quarter-on-quarter increase of 10% from $58.9 million for the second quarter of
2012.
- Non-GAAP net income attributable to Focus Media was
$94.6 million, exceeding the
mid-point of the Company's guidance range of $92-$94 million by 2%, and representing a
year-on-year increase of 14% from non-GAAP net income attributable
to Focus Media of $82.7 million for
the third quarter of 2011 and a quarter-on-quarter increase of 16%
from non-GAAP net income attributable to Focus Media of
$81.9 million for the second quarter
of 2012. Please see the below sections on "Use of Non-GAAP
Financial Measures" and "Reconciliation of GAAP to non-GAAP" for
more information about the non-GAAP measures referred to within
this announcement.
- GAAP net income attributable to Focus Media per fully diluted
ADS was $0.48, representing a
year-on-year increase of 9% from $0.44 per fully diluted ADS for the third quarter
of 2011 and a quarter-on-quarter increase of 9% from $0.44 per fully diluted ADS for the second
quarter of 2012.
- Non-GAAP net income attributable to Focus Media per fully
diluted ADS was $0.71, representing a
year-on year increase of 20% from $0.59 per fully diluted ADS for the third quarter
of 2011 and a quarter-on-quarter increase of 15% from $0.62 per fully diluted ADS for the second
quarter of 2012.
Highlights for Balance Sheet and Cash Flow Results of Third
Quarter 2012:
- Cash, cash equivalents, restricted cash and short-term
investments were $901.1 million as of
September 30, 2012, as compared to
$856.9 million as of June 30, 2012. Restricted cash is deposited
in bank accounts as security for bank borrowings. These deposits
earn fixed interest rates and are released when the related bank
borrowings are settled by the Company. Restricted cash was
$198.0 million as of September 30, 2012, as compared to $206.1 million as of June
30, 2012, and was comprised of current restricted cash of
$99.0 million and non-current
restricted cash of $99.0
million. Short-term investments, consisting of
longer term dated cash deposits that earn higher interest rates as
compared to cash and cash equivalent, were $211.2 million as of September 30, 2012 as compared to $211.4 million as of June
30, 2012.
- Bank loans were $200.0 million
inclusive of short-term bank loans of $100.0
million and long-term bank loans of $100.0 million as of September 30, 2012, as compared to bank loans of
$207.5 million as of June 30, 2012, which were used to finance the
Company's share repurchases and dividend payouts.
Operationally, as the Company generates cash inflow in Renminbi
onshore, offshore bank loans are used to increase our offshore USD
base cash resources mainly for future dividend payouts or share
repurchases. The entire bank loan facility was extended
based on an equivalent Renminbi onshore cash deposit, which was
deposited as restricted cash.
- Net accounts receivable for the LCD display network, in-store
network, poster frame network and movie theater network was
$284.1 million as of September 30, 2012, an increase of 19% from
$238.4 million as of June 30, 2012 due to sequential growth of
revenues. Days sales outstanding was 92 days in the third
quarter of 2012, similar to 91 days for the second quarter of
2012.
- Net cash inflow from operating activities in the third quarter
of 2012 was $77.9 million,
representing year-on-year decline of 10% from $86.3 million for the third quarter of 2011 and a
quarter-on-quarter decline of 16% from $93.1
million for the second quarter of 2012. The decline
was mainly due to the slower cash collection particularly in the
LCD display network in the third quarter of 2012 as compared to the
third quarter of 2011 and the second quarter of 2012. Despite
slightly slower cash collection, the Company believes that overall
accounts receivable remain healthy and has provided adequately for
potential bad debt.
- Net cash inflow from operating activities for the third quarter
of 2012, after deducting the purchase of equipment and subsidiaries
as well as net cash outflows derived from disposition of
subsidiaries was $71.7 million,
slightly decreasing by 2% from the $72.9
million for the third quarter of 2011 and a
quarter-on-quarter contraction of 18% from $87.2 million for the second quarter of 2012
which was mainly to the decline of net cash inflow from operating
activities.
- Capital expenditures were $5.0
million for the third quarter of 2012, mostly attributable
to the deployment of next generation interactive screens in a few
of tier-2 cities in the LCD display network.
- Cash paid for the acquisition of subsidiaries in the third
quarter of 2012 was $0.6 million,
which was mainly attributable to the LCD display network.
Jason Jiang, Chairman and Chief
Executive Officer of Focus Media said, "In the third quarter of
2012, we continue to see macroeconomic uncertainties impact on
overall advertising spending in China despite we exceeded the previous
guidance of the company. We expect similar trend to continue
through the fourth quarter. Particularly the recent pressure on
Japanese automotive sales in China
also resulted in advertising budget cut-backs from a number of
Japanese automotive labels. Despite near and possibly medium term
pressure, we believe that our media platform remain strong and
robust to weather these challenges."
Kit Low, the Company's Chief
Financial Officer added, "In the third quarter of 2012, the Company
achieved aggregate net revenue year-on-year growth in our LCD
display, poster frame business, in-store and movie theater network
of 26%. GAAP net income attributable to Focus Media and Non-GAAP
net income attributable to Focus Media for the third quarter of
2012 was $64.6 million and
$94.6 million, respectively. In
the third quarter of 2012, the Company generated a net cash inflow
from operating activities after deducting the purchases of
equipment and subsidiaries as well as net cash outflows derived
from disposition of subsidiaries of $71.7
million."
Third Quarter 2012 financial results
Advertising net revenue from the LCD display network was
$128.4 million for the third quarter
of 2012, representing an increase of 6% from $120.6 million for the third quarter of 2011 and
an increase of 5% from $122.1 million
for the second quarter of 2012.
Advertising net revenue from the poster frame network was
$81.6 million for the third quarter
of 2012, representing an increase of 75% from $46.6 million for the third quarter of 2011 and
an increase of 19% from $68.6 million
for the second quarter of 2012.
Advertising net revenue from the in-store network was
$14.5 million for the third quarter
of 2012, representing a decrease of 9% from $15.9 million for the third quarter of 2011 and
an increase of 7% from $13.6 million
for the second quarter of 2012.
Advertising net revenue from the movie theater network was
$23.2 million for the third quarter
of 2012, representing an increase of 78% from $13.0 million for the third quarter of 2011 and
an increase of 53% from $15.2 million
for the second quarter of 2012
Advertising net revenue from the traditional outdoor billboard
network was $8.6 million for the
third quarter of 2012, representing a decrease of 30% from
$12.2 million for the third quarter
of 2011 and a decrease of 11% from $9.7
million for the second quarter of 2012. Due to medium
term advertising spending uncertainties and the continued view of
the Company that the traditional outdoor billboard network is not a
core business segment, the Company has decided to downsize this
business segment by divesting of four entities within the segment.
Two of which have been divested prior to end of this third
quarter while the remaining two are expected to be completed before
the end of 2012. Consequently, the revenues of these four
entities have been reclassified into "Net income from discontinued
operations" in statements of income during the period.
Therefore, $4.6 million revenues of
these four entities were reclassified into "Net income from
discontinued operations" in statements of income in the third
quarter of 2012 and as a comparison, $2.4
million and $4.0 million
revenues of these four entities were also reclassified respectively
in the third quarter of 2011 and in the second quarter of 2012 in
this press release.
Non-GAAP gross profit from the LCD display network for the third
quarter of 2012 was $99.8 million,
slightly increasing from $99.5
million for the third quarter of 2011 and an increase of 3%
from $96.7 million for the second
quarter of 2012.
Non-GAAP gross profit from the poster frame network for the
third quarter of 2012 was $52.5
million, more than doubling the $19.6
million for the third quarter of 2011 due to significant
year-on-year growth of revenues, and representing an increase of
36% from $38.6 million for the second
quarter of 2012.
Non-GAAP gross profit from the in-store network for the third
quarter of 2012 was $9.1 million,
representing a decrease of 9% from $10.0
million for the third quarter of 2011 due to year-on-year
decline of revenues and an increase of 10% from $8.3 million for the second quarter of 2012.
Non-GAAP gross profit from the movie theater network for the
third quarter of 2012 was $14.5
million, more than doubling both the $6.4 million for the third quarter of 2011 and
the $6.6 million for the second
quarter of 2012 which was due to robust revenue growth in the third
quarter of 2012
Non-GAAP gross loss from the traditional outdoor billboard
network for the third quarter of 2012 was $0.4 million, as compared to non-GAAP gross
profit of $2.0 million for the third
quarter of 2011 and non-GAAP gross profit of $0.6 million for the second quarter of
2012. The decrease in non-GAAP gross profit was mainly due to
higher fixed costs associated with the expansion of the traditional
outdoor billboard network areas around intercity high-speed rail
lines dragged down the overall gross profit margin of this segment
during the quarter.
Non-GAAP operating expenses for the third quarter of 2012 was
$57.5 million, an increase of 23%
from $46.6 million for the third
quarter of 2011, which was attributable to an increase in selling
and marketing expenses from year-on-year revenue growth and
professional fee increase in general and administrative expenses.
It also represented a decrease of 14% from $66.7 million for the second quarter of 2012
Net cash inflow from operating activities in the third quarter
of 2012 was $77.9 million,
representing year-on-year decline of 10% from $86.3 million for the third quarter of 2011 and a
quarter-on-quarter decline of 16% from $93.1
million for the second quarter of 2012. The decline
was mainly due to the slower cash collection particularly in the
LCD display network in the third quarter of 2012 as compared to the
third quarter of 2011 and the second quarter of 2012. Despite
slightly slower collection, the Company continues to monitor
account receivables very closely, and believes that overall
accounts receivable remain healthy and has provided adequately for
potential bad debt.
Net cash provided by investing activities for the third
quarter of 2012 was $0.9 million.
In the third quarter of 2012, the Company incurred capital
expenditures of $5.0 million and
subsidiary acquisition payments of $0.6
million. Meanwhile, the Company incurred net cash
inflows from net investment in short-term investments and deposits
in restricted cash of $7.2 million
during the quarter. Short-term investments are longer term dated
cash deposits normally with maturities between three and twelve
months that earn higher interest rates as compared to cash and cash
equivalents. Restricted cash is deposited in bank accounts as
security for bank borrowings.
Net cash used by financing activities for the third quarter of
2012 was $24.9 million. In the
third quarter of 2012, the Company repaid bank loans of
$7.5 million. Meanwhile, the
Company paid $17.4 million for the
dividend payout for the second quarter of 2012.
Cash and cash equivalents in held-for-sale assets as of
September 30, 2012 was $1.0 million.
Operating Data Summary
The Company is providing a breakdown of operating data as
follows:
1) The approximate number of displays in the LCD display network
was as follows:
|
As of September 30,
2012
|
As of June 30,
2012
|
LCD screens
|
136,870
|
135,001
|
LCD 2.0 digital picture
screens
|
35,535
|
35,112
|
Total for LCD display
network (note)
|
172,405
|
170,113
|
Note: LCD screens have excluded LCD 1.0 picture frame
devices since the fourth quarter of 2011. The increase in the
total number of LCD screens and LCD 2.0 digital picture screens as
of September 30, 2012 as compared to
that as of June 30, 2012 was due to
organic network expansion. Of the total LCD screens of
136,870 as of September 30, 2012,
9,589 screens were operated through our regional distributors as
compared to 9,734 screens as of June 30,
2012.
2) The approximate number of devices in the poster frame network
was as follows:
|
As of September 30,
2012
|
As of June 30,
2012
|
Frame 1.0 picture frames
(note)
|
497,269
|
484,145
|
Frame 2.0 digital
picture screens
|
35,892
|
35,616
|
Total
|
533,161
|
519,761
|
Note: Frame 1.0 picture frames have included LCD 1.0 picture
frame devices since the fourth quarter of 2011. The increase in the
total number of Frame 1.0 picture frames as of September 30, 2012 as compared to that as of
June 30, 2012 was due to organic
network expansion.
3) The total number of displays installed in our in-store
network was approximately 53,239 as of September 30, 2012, as compared to 51,995 as of
June 30, 2012. The increase was
due to organic network expansion.
4) The number of movie screens on which the Company had the
right to lease advertising time as of September 30, 2012 was approximately 2,470, as
compared to 2,320 as of June 30,
2012. The increase was due to organic network expansion.
Business Outlook for Fourth Quarter 2012
The Company provides the following guidance with respect to the
quarter ending December 31, 2012:
Net revenues for the core business (inclusive of the LCD display
network, the in-store network, the poster frame network and the
movie theater network) are expected to be in the range of
$237-$246 million, the mid-point of
which would represent year-on-year growth of 1% and quarter on
quarter decline of 3%. Net revenues for the non-core business
(the traditional outdoor billboard network) are expected to be in
the range of $6-$7 million. The
Company's non-GAAP net income is expected to be in the range of
$93-$98 million. The Company
estimates the weighted average fully diluted ADS count for the
quarter at 133.2 million.
Announced Receipt of "Going Private" Proposal
As previously announced on August 13,
2012, the Company's Board of Directors received a
preliminary non-binding proposal letter, dated August 12, 2012, from affiliates of The Carlyle
Group , FountainVest Partners, CITIC Capital Partners, CDH
Investments, China Everbright Limited and Mr. Jason Nanchun Jiang,
Chairman of the Board and Chief Executive Officer of Focus Media
(together, the "Consortium Members"), that proposes a
"going-private" transaction (the "Transaction") for $27.00 in cash per American depositary share, or
$5.40 in cash per ordinary share. The
committee of independent directors formed by the board to consider
the proposal (the "Independent Committee") is continuing to
consider the proposed transaction. No decisions have been
made by the Independent Committee with respect to the Company's
response to the Transaction. There can be no assurance that any
definitive offer will be made, that any agreement will be executed
or that this or any other transaction will be approved or
consummated. The Company does not undertake any obligation to
provide any updates with respect to this or any other transaction,
except as required under applicable law.
Announced Share Repurchase Program
As of November 27, 2012, the
Company has cumulatively spent $491
million in share repurchases out of the share repurchase
program totaling $650
million.
Arrangements regarding announced recurring payout
Focus Media announced on January 10,
2012 that the Company is committed to a 55% annual payout
based on prior year non-GAAP net income. Of which 25% of the payout
is expected to be dividend payments paid on a quarterly basis,
which will be paid out in the following calendar year to
shareholders of record as of March
31, June 30, September 30 and December
31 respectively, while the remaining 30% payout is expected
to be either dividend payments and/or share repurchases. The payout
commenced in 2012 in respect of Focus Media's non-GAAP net income
for 2011.
Based on the Company 2011 non-GAAP net income of $284.1 million, a cash dividend of US$0.0274 per ordinary share (or US$0.137 per American Depositary Share) was paid
on April 16, 2012 to shareholders of
record as of the close of business on March
30, 2012, a cash dividend of US$0.0272 per ordinary share (or US$0.136 per American Depositary Share) was paid
on July 16, 2012 to shareholders of
record as of the close of business on July
10, 2012 and a cash dividend of US$0.0272 per ordinary share (or US$0.136 per American Depositary Share) was paid
on October 16, 2012 to shareholders
of record as of the close of business on September 28, 2012.
The board has resolved to postpone approval of future cash
dividends through December 31, 2012
due to ongoing considerations relating to the going private
proposal. The board will make a determination regarding the
remaining dividends in respect of 2011 non-GAAP net income at that
time, depending on the status of the going private
proposal.
Value-added tax reform in Shanghai and Beijing
The government implemented a value-added tax reform pilot
program, which replaced the business tax with value-added tax on
selected sectors including the advertising sector, in Shanghai effective January 1, 2012 and in Beijing effective September 1, 2012. The value-added tax rate
applicable to the subsidiaries of our group in Shanghai and Beijing is 6% as compared to the 5% business
tax rate which was applicable prior to the reform.
Foreign Currency Translation
Assets and liabilities are translated at the exchange rate as of
September 30, 2012, which was
$1 to RMB 6.3410. Equity
accounts are translated at historical exchange rates and revenues,
expenses, gains and losses are translated using the average rate
for the third quarter of 2012, which was $1
to RMB 6.3257. Translation adjustments are reported as
cumulative translation adjustments and are a separate component of
other comprehensive income.
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 (cumulatively and by segment),
non-GAAP operating expenses, non-GAAP operating profit (loss),
non-GAAP net income and non-GAAP fully-diluted earnings per ADR,
all excluding share-based compensation expenses, amortization of
acquired intangible assets, loss from equity method investee and
goodwill impairment. Management uses these non-GAAP financial
measures to better assess operating performance of the
Company. 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 for future periods.
The Company computes its non-GAAP financial measures using a
consistent method from quarter to quarter, mostly excluding
share-based compensation expenses, amortization of acquired
intangible assets, loss from equity method investee and goodwill
impairment. 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
|
(U.S. Dollars in
thousands, except percentages, share and per-share data)
|
(Unaudited)
|
|
|
Three months ended
September 30, 2012
|
|
GAAP
|
(1)
|
(2)
|
(3)
|
(4)
|
Non-GAAP
|
|
|
|
|
|
|
|
Gross Profit
(loss)
|
|
|
|
|
|
|
LCD display
network
|
98,443
|
495
|
813
|
—
|
—
|
99,751
|
Poster frame
network
|
52,341
|
—
|
129
|
—
|
—
|
52,470
|
In-store
network
|
9,082
|
—
|
—
|
—
|
—
|
9,082
|
Movie theater
network
|
14,470
|
—
|
—
|
—
|
—
|
14,470
|
Traditional outdoor
billboard network
|
(906)
|
—
|
462
|
—
|
—
|
(444)
|
Total Gross
Profit
|
173,430
|
495
|
1,404
|
—
|
—
|
175,329
|
|
|
|
|
|
|
|
General and
administrative
|
36,132
|
(14,884)
|
—
|
—
|
—
|
21,248
|
Selling and
marketing
|
53,123
|
(1,438)
|
(552)
|
—
|
—
|
51,133
|
Other operating
income, net
|
(14,890)
|
—
|
—
|
—
|
—
|
(14,890)
|
Total operating
expense
|
74,365
|
(16,322)
|
(552)
|
—
|
—
|
57,491
|
|
|
|
|
|
|
|
Operating profit from
continuing operations
|
99,065
|
16,817
|
1,956
|
—
|
—
|
117,838
|
|
|
|
|
|
|
|
Profit from
continuing operations before income taxes and loss
from equity method investee
|
103,146
|
16,817
|
1,956
|
—
|
—
|
121,919
|
|
|
|
|
|
|
|
Net profit from
continuing operations
|
66,135
|
16,817
|
1,956
|
9,499
|
—
|
94,407
|
Net loss from
discontinued operations
|
(1,809)
|
—
|
806
|
—
|
908
|
(95)
|
|
|
|
|
|
|
|
Net income
attributable to Focus Media
|
64,590
|
16,817
|
2,762
|
9,499
|
908
|
94,576
|
|
|
|
|
|
|
|
Basic net income from
continuing operations attributable to Focus Media per
ADS
|
0.52
|
|
|
|
|
0.74
|
Diluted net income from
continuing attributable to Focus Media operations per
ADS
|
0.49
|
|
|
|
|
0.71
|
|
|
|
|
|
|
|
Basic net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.01)
|
|
|
|
|
0.00
|
Diluted net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.01)
|
|
|
|
|
0.00
|
|
|
|
|
|
|
|
Basic net income
attributable to Focus Media per ADS
|
0.51
|
|
|
|
|
0.74
|
Diluted net income
attributable to Focus Media per ADS
|
0.48
|
|
|
|
|
0.71
|
ADS used in calculating
basic income per ADS
|
127,777,021
|
|
|
|
|
127,777,021
|
ADS used in calculating
diluted income per ADS
|
133,518,344
|
|
|
|
|
133,518,344
|
|
|
|
|
|
|
|
(1). Share-based
compensation.
(2). Amortization of
acquired intangible assets.
(3). Loss from equity
method investee (VisionChina)
(4). Goodwill
impairment
|
|
|
|
|
|
|
|
Three months ended
June 30, 2012
|
|
GAAP
|
(1)
|
(2)
|
(3)
|
Non-GAAP
|
|
|
|
|
|
|
Gross Profit
(loss)
|
|
|
|
|
|
LCD display
network
|
95,315
|
488
|
903
|
—
|
96,706
|
Poster frame
network
|
38,453
|
—
|
180
|
—
|
38,633
|
In-store
network
|
8,300
|
—
|
—
|
—
|
8,300
|
Movie theater
network
|
6,562
|
—
|
—
|
—
|
6,562
|
Traditional outdoor
billboard network
|
164
|
—
|
462
|
—
|
626
|
Total Gross
Profit
|
148,794
|
488
|
1,545
|
—
|
150,827
|
|
|
|
|
|
|
General and
administrative
|
37,791
|
(14,604)
|
—
|
—
|
23,187
|
Selling and
marketing
|
51,110
|
(1,418)
|
(570)
|
—
|
49,122
|
Other operating
income, net
|
(5,587)
|
—
|
—
|
—
|
(5,587)
|
Total operating
expense
|
83,314
|
(16,022)
|
(570)
|
—
|
66,722
|
|
|
|
|
|
|
Operating profit from
continuing operations
|
65,480
|
16,510
|
2,115
|
—
|
84,105
|
|
|
|
|
|
|
Profit from
continuing operations before income taxes and loss
from equity method investee
|
70,564
|
16,510
|
2,115
|
—
|
89,189
|
|
|
|
|
|
|
Net profit from
continuing operations
|
59,505
|
16,510
|
2,115
|
3,436
|
81,566
|
Net loss from
discontinued operations
|
(1,469)
|
—
|
938
|
—
|
(531)
|
|
|
|
|
|
|
Net income
attributable to Focus Media
|
58,907
|
16,510
|
3,053
|
3,436
|
81,906
|
|
|
|
|
|
|
Basic net income from
continuing operations attributable to Focus Media per
ADS
|
0.47
|
|
|
|
0.64
|
Diluted net income from
continuing attributable to Focus Media operations per
ADS
|
0.45
|
|
|
|
0.62
|
|
|
|
|
|
|
Basic net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.01)
|
|
|
|
0.00
|
Diluted net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.01)
|
|
|
|
0.00
|
|
|
|
|
|
|
Basic net income
attributable to Focus Media per ADS
|
0.46
|
|
|
|
0.64
|
Diluted net income
attributable to Focus Media per ADS
|
0.44
|
|
|
|
0.62
|
|
|
|
|
|
|
ADS used in calculating
basic income per ADS
|
128,227,213
|
|
|
|
128,227,213
|
ADS used in calculating
diluted income per ADS
|
133,103,155
|
|
|
|
133,103,155
|
|
|
|
|
|
|
(1). Share-based
compensation.
(2). Amortization of
acquired intangible assets.
(3). Loss from equity
method investee (VisionChina)
|
|
|
|
|
|
|
Three months ended
September 30, 2011
|
|
GAAP
|
(1)
|
(2)
|
(3)
|
Non-GAAP
|
|
|
|
|
|
|
Gross Profit
(loss)
|
|
|
|
|
|
LCD display
network
|
98,196
|
200
|
1,101
|
—
|
99,497
|
Poster frame
network
|
18,588
|
—
|
989
|
—
|
19,577
|
In-store
network
|
10,022
|
—
|
—
|
—
|
10,022
|
Movie theater
network
|
6,390
|
—
|
11
|
—
|
6,401
|
Traditional outdoor
billboard network
|
1,501
|
—
|
456
|
—
|
1,957
|
Total Gross
Profit
|
134,697
|
200
|
2,557
|
—
|
137,454
|
|
|
|
|
|
|
General and
administrative
|
32,562
|
(14,423)
|
—
|
—
|
18,139
|
Selling and
marketing
|
32,506
|
(934)
|
(1,051)
|
—
|
30,521
|
Other operating
income, net
|
(2,052)
|
—
|
—
|
—
|
(2,052)
|
Total operating
expense
|
63,016
|
(15,357)
|
(1,051)
|
—
|
46,608
|
|
|
|
|
|
|
Operating profit from
continuing operations
|
71,681
|
15,557
|
3,608
|
—
|
90,846
|
|
|
|
|
|
|
Profit before tax
from continuing operations
|
76,943
|
15,557
|
3,608
|
—
|
96,108
|
|
|
|
|
|
|
Net profit from
continuing operations
|
62,106
|
15,557
|
3,608
|
985
|
82,256
|
Net profit from
discontinued operations
|
560
|
—
|
362
|
—
|
922
|
|
|
|
|
|
|
Net income
attributable to Focus Media
|
62,229
|
15,557
|
3,970
|
985
|
82,741
|
|
|
|
|
|
|
Basic net income from
continuing operations attributable to Focus Media per
ADS
|
0.47
|
|
|
|
0.62
|
Diluted net income from
continuing attributable to Focus Media operations per
ADS
|
0.44
|
|
|
|
0.59
|
|
|
|
|
|
|
Basic net income from
discontinued operations attributable to Focus Media per
ADS
|
0.00
|
|
|
|
0.00
|
Diluted net income from
discontinued operations attributable to Focus Media per
ADS
|
0.00
|
|
|
|
0.00
|
|
|
|
|
|
|
Basic net income
attributable to Focus Media per ADS
|
0.47
|
|
|
|
0.62
|
Diluted net income
attributable to Focus Media per ADS
|
0.44
|
|
|
|
0.59
|
|
|
|
|
|
|
ADS used in calculating
basic income per ADS
|
133,718,768
|
|
|
|
133,718,768
|
ADS used in calculating
diluted income per ADS
|
139,866,888
|
|
|
|
139,866,888
|
|
|
|
|
|
|
|
|
|
|
|
|
(1). Share-based
compensation.
(2). Amortization of
acquired intangible assets.
(3). Loss from equity
method investee (VisionChina)
|
|
|
|
|
|
|
Focus Media Holding
Ltd.
Reconciliation of GAAP
to non-GAAP
(U.S. Dollar in
thousands, except share and per-share data)
(Unaudited)
Nine months ended
September 30, 2012
|
|
GAAP
|
(1)
|
(2)
|
(3)
|
(4)
|
Non-GAAP
|
|
|
|
|
|
|
|
Gross Profit
(loss)
|
|
|
|
|
|
|
LCD display
network
|
254,915
|
1,467
|
2,659
|
—
|
—
|
259,041
|
Poster frame
network
|
127,097
|
—
|
522
|
—
|
—
|
127,619
|
In-store
network
|
24,443
|
—
|
—
|
—
|
—
|
24,443
|
Movie theater
network
|
33,069
|
—
|
—
|
—
|
—
|
33,069
|
Traditional outdoor
billboard network
|
(583)
|
—
|
1,387
|
—
|
—
|
804
|
Total Gross
Profit
|
438,941
|
1,467
|
4,568
|
—
|
—
|
444,976
|
|
|
|
|
|
|
|
General and
administrative
|
103,736
|
(44,922)
|
—
|
—
|
—
|
58,814
|
Selling and
marketing
|
142,123
|
(4,258)
|
(1,738)
|
—
|
—
|
136,127
|
Other operating
income, net
|
(24,691)
|
—
|
—
|
—
|
—
|
(24,691)
|
Total operating
expense
|
221,168
|
(49,180)
|
(1,738)
|
—
|
—
|
170,250
|
|
|
|
|
|
|
|
Operating profit from
continuing operations
|
217,773
|
50,647
|
6,306
|
—
|
—
|
274,726
|
|
|
|
|
|
|
|
Profit before tax
from continuing operations
|
230,296
|
50,647
|
6,306
|
—
|
—
|
287,249
|
Net profit from
continuing operations
|
163,048
|
50,647
|
6,306
|
15,961
|
—
|
235,962
|
Net profit/ (loss)
from discontinued operations
|
(3,174)
|
—
|
2,831
|
—
|
908
|
565
|
Net income
attributable to Focus Media
|
161,406
|
50,647
|
9,137
|
15,961
|
908
|
238,059
|
|
|
|
|
|
|
|
Basic net income from
continuing operations attributable to Focus Media per
ADS
|
1.28
|
|
|
|
|
1.86
|
Diluted net income from
continuing attributable to Focus Media operations per
ADS
|
1.23
|
|
|
|
|
1.80
|
|
|
|
|
|
|
|
Basic net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.02)
|
|
|
|
|
(0.01)
|
Diluted net income from
discontinued operations attributable to Focus Media per
ADS
|
(0.02)
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
Basic net income
attributable to Focus Media per ADS
|
1.26
|
|
|
|
|
1.85
|
Diluted net income
attributable to Focus Media per ADS
|
1.21
|
|
|
|
|
1.79
|
|
|
|
|
|
|
|
ADS used in calculating
basic income per ADS
|
128,428,818
|
|
|
|
|
128,428,818
|
ADS used in calculating
diluted income per ADS
|
133,359,921
|
|
|
|
|
133,359,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1). Share-based
compensation.
(2). Amortization of
acquired intangible assets.
(3). Loss from equity
method investee (VisionChina).
(4). Goodwill
impairment
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2011
|
|
GAAP
|
(1)
|
(2)
|
(3)
|
Non-GAAP
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
LCD display
network
|
246,336
|
593
|
3,309
|
—
|
250,238
|
Poster frame
network
|
40,043
|
—
|
3,285
|
—
|
43,328
|
In-store
network
|
22,995
|
—
|
—
|
—
|
22,995
|
Movie theater
network
|
11,280
|
—
|
43
|
—
|
11,323
|
Traditional outdoor
billboard network
|
6,017
|
—
|
1,349
|
—
|
7,366
|
Total Gross
Profit
|
326,671
|
593
|
7,986
|
—
|
335,250
|
|
|
|
|
|
|
General and
administrative
|
89,426
|
(42,852)
|
—
|
—
|
46,574
|
Selling and
marketing
|
96,786
|
(2,775)
|
(3,165)
|
—
|
90,846
|
Other operating
income, net
|
(7,967)
|
—
|
—
|
—
|
(7,967)
|
Total operating
expense
|
178,245
|
(45,627)
|
(3,165)
|
—
|
129,453
|
|
|
|
|
|
|
Operating profit from
continuing operations
|
148,426
|
46,220
|
11,151
|
—
|
205,797
|
|
|
|
|
|
|
Profit before tax
from continuing operations
|
159,195
|
46,220
|
11,151
|
—
|
216,566
|
|
|
|
|
|
|
Net profit from
continuing operations
|
124,753
|
46,220
|
11,151
|
4,750
|
186,874
|
Net profit from
discontinued operations
|
560
|
—
|
363
|
—
|
923
|
Net income
attributable to Focus Media
|
125,585
|
46,220
|
11,514
|
4,750
|
188,069
|
|
|
|
|
|
|
Basic net income from
continuing operations attributable to Focus Media per
ADS
|
0.93
|
|
|
|
1.39
|
Diluted net income from
continuing attributable to Focus Media operations per
ADS
|
0.89
|
|
|
|
1.34
|
|
|
|
|
|
|
Basic net income from
discontinued operations attributable to Focus Media per
ADS
|
0.00
|
|
|
|
0.00
|
Diluted net income from
discontinued operations attributable to Focus Media per
ADS
|
0.00
|
|
|
|
0.00
|
|
|
|
|
|
|
Basic net income
attributable to Focus Media per ADS
|
0.93
|
|
|
|
1.39
|
Diluted net income
attributable to Focus Media per ADS
|
0.89
|
|
|
|
1.34
|
|
|
|
|
|
|
ADS used in calculating
basic income per ADS
|
134,972,295
|
|
|
|
134,972,295
|
ADS used in calculating
diluted income per ADS
|
140,567,619
|
|
|
|
140,567,619
|
|
|
|
|
|
|
|
|
|
|
|
|
(1). Share-based
compensation.
(2). Amortization of
acquired intangible assets.
(3). Loss from equity
method investee (VisionChina)
|
|
|
|
|
|
CONFERENCE CALL
1) The Company will host a conference call to discuss the third
quarter 2012 results at 8:00 p.m.
U.S. Eastern Time on November 27,
2012 (5:00 p.m. U.S. Pacific
Time on November 27, 2012 and
9:00 a.m. Beijing/Hong Kong Time on November 28, 2012). The dial-in details for the
live conference call are set forth below:
International Toll Dial-In Number: + 65.6723.9381
Local Dial-In Number(s):
China, Domestic Mobile:
400.620.8038
China, Domestic: 800.819.0121
Hong Kong: +852.2475.0994
United States: +1.718.354.1231
International Toll Free Dial-in Number(s):
Hong Kong: +852.800.930.346
United States: +1.866.519.4004
Conference ID # 71489860
2) A replay of the call will be available from November 27, 2012 11:00pm until December 5,
2012 7:59am (U.S. Eastern
Time). The dial-in details for the replay are set forth below:
International Toll Dial-In Number: +61.2.8199.0299
Local Dial-In Number(s):
Hong Kong: +852.3051.2780
United States:
+1.646.254.3697
International Toll Free Dial-in Number(s):
China 400: 400.120.0932
China 800: 800.870.0205
Hong Kong: +852.800.963.117
United States: +1.855.452.5696
Conference ID # 71489860
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, as well as
the consideration of the going private proposal and the impact on
the Company resulting from the success or failure of that proposal.
Focus Media may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission on forms 20-F and 6-K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Focus Media's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, risks
outlined in Focus Media's filings with the U.S. Securities and
Exchange Commission, including its registration statements on Form
F-1, F-3 and 20-F, in each case as amended. Focus Media does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
This release is not an offer of securities for sale in the
United States. Securities may not be offered or sold in
the United States absent
registration or an exemption from registration. Any public
offering of securities to be made in the
United States will be made by means of a prospectus that may
be obtained from the issuer or selling security holder and that
will contain detailed information about the company and management,
as well as financial statements.
ABOUT FOCUS MEDIA HOLDING LIMITED
Focus Media Holding Limited (Nasdaq: FMCN) operates China's largest lifestyle targeted interactive
digital media network. The Company offers one of the most
comprehensive targeted interactive digital media platforms aimed at
Chinese consumers at various urban locations. The increasingly
fragmented and mobile lifestyle of Chinese urban consumers has
created the need for more efficient media means to capture consumer
attention. Focus Media's mission is to build an increasingly
comprehensive and measurable interactive urban media network that
reaches consumers at various out-of-home locations.
Focus Media Holding
Limited
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S Dollars in
Thousands)
|
|
|
|
2012-09-30
|
2012-06-30
|
2011-09-30
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
491,729
|
439,383
|
435,322
|
Restricted cash
|
99,043
|
106,809
|
—
|
Short-term
investments
|
211,238
|
211,444
|
204,567
|
Accounts receivable,
net
|
294,102
|
254,429
|
230,552
|
Prepaid expenses and other
current assets
|
71,616
|
73,299
|
39,060
|
Rental deposits
|
60,739
|
63,064
|
56,143
|
Available-for-sale
assets-current
|
4,660
|
—
|
—
|
Other current
assets
|
2,262
|
2,308
|
8,098
|
Total current
assets
|
1,235,389
|
1,150,736
|
973,742
|
Restricted cash
|
99,043
|
99,295
|
—
|
Rental deposits,
non-current
|
3,252
|
4,027
|
4,770
|
Equipment, net
|
66,044
|
71,383
|
68,786
|
Acquired intangible assets,
net
|
4,776
|
28,529
|
39,242
|
Goodwill
|
439,201
|
459,294
|
452,201
|
Investment under equity
method
|
5,040
|
14,586
|
59,148
|
Available-for-sale
assets-non-current
|
21,008
|
—
|
—
|
Other long term
assets
|
14,642
|
10,527
|
17,354
|
Total
assets
|
1,888,395
|
1,838,377
|
1,615,243
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term bank
loan
|
100,000
|
107,514
|
30,000
|
Accounts
payable
|
16,828
|
20,428
|
22,146
|
Accrued expenses and
other current liabilities
|
188,569
|
173,947
|
132,449
|
Income taxes
payable
|
43,745
|
29,946
|
10,943
|
Amount due to related
parties
|
1,554
|
1,581
|
4,175
|
Available-for-sale
liabilities-current
|
9,468
|
—
|
—
|
Deferred tax
liabilities
|
29,339
|
29,414
|
24,532
|
Total current
liabilities
|
389,503
|
362,830
|
224,245
|
Long-term loan
|
100,000
|
100,000
|
—
|
Long-term payable
|
—
|
11,829
|
12,995
|
Available-for-sale
liabilities-non-current
|
6,159
|
—
|
—
|
Deferred tax liabilities,
non-current
|
13,190
|
18,573
|
16,102
|
Total
liabilities
|
508,852
|
493,232
|
253,342
|
|
|
|
|
Equity
|
|
|
|
Ordinary shares
|
32
|
32
|
33
|
Additional paid in
capital
|
1,548,446
|
1,531,628
|
1,668,269
|
Subscription
receivable
|
—
|
(21)
|
(1,236)
|
Accumulated deficit
|
(291,226)
|
(321,106)
|
(437,368)
|
Accumulated other
comprehensive income
|
113,318
|
116,303
|
111,572
|
Total Focus Media
equity
|
1,370,570
|
1,326,836
|
1,341,270
|
Non-controlling
interests
|
8,973
|
18,309
|
20,631
|
Total
equity
|
1,379,543
|
1,345,145
|
1,361,901
|
Total liabilities and
equity
|
1,888,395
|
1,838,377
|
1,615,243
|
Focus Media Holding
Limited
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(U.S Dollars in
thousands, except earnings per ADS and ADS data)
|
|
|
Three months
ended
|
Nine months
ended
|
|
2012-09-30
|
2012-06-30
|
2011-9-30
|
2012-09-30
|
2011-09-30
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
LCD display
network
|
135,777
|
129,130
|
132,555
|
356,918
|
336,097
|
In-store
network
|
14,879
|
13,954
|
17,367
|
41,838
|
44,111
|
Poster frame
network
|
86,056
|
73,177
|
51,023
|
229,843
|
131,953
|
Movie theater
network
|
23,753
|
15,578
|
13,614
|
58,233
|
31,672
|
Traditional outdoor
billboard network
|
8,554
|
10,069
|
12,404
|
28,692
|
36,116
|
Total gross
revenues
|
269,019
|
241,908
|
226,963
|
715,524
|
579,949
|
Less: Sales
taxes
|
12,742
|
12,900
|
18,670
|
35,869
|
46,119
|
Total net revenue
(note 1)
|
256,277
|
229,008
|
208,293
|
679,655
|
533,830
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
LCD display
network
|
29,976
|
26,737
|
22,364
|
83,110
|
60,619
|
In-store
network
|
5,384
|
5,259
|
5,849
|
16,250
|
17,324
|
Poster frame
network
|
29,268
|
30,113
|
28,056
|
88,782
|
80,858
|
Movie theater
network
|
8,762
|
8,599
|
6,601
|
23,737
|
18,773
|
Traditional outdoor
billboard network
|
9,457
|
9,506
|
10,726
|
28,835
|
29,585
|
Total cost of
revenues
|
82,847
|
80,214
|
73,596
|
240,714
|
207,159
|
Gross
profit
|
173,430
|
148,794
|
134,697
|
438,941
|
326,671
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
General and
administrative
|
36,132
|
37,791
|
32,562
|
103,736
|
89,426
|
Selling and
marketing
|
53,123
|
51,110
|
32,506
|
142,123
|
96,786
|
Other operating income,
net
|
(14,890)
|
(5,587)
|
(2,052)
|
(24,691)
|
(7,967)
|
Total operating
expenses
|
74,365
|
83,314
|
63,016
|
221,168
|
178,245
|
|
|
|
|
|
|
Operating
profit
|
99,065
|
65,480
|
71,681
|
217,773
|
148,426
|
Interest
income
|
5,366
|
6,334
|
5,395
|
16,178
|
10,902
|
Interest
Expense
|
(1,285)
|
(1,250)
|
(133)
|
(3,655)
|
(133)
|
Income from
continuing operations
before income taxes and loss
from equity method investee
|
103,146
|
70,564
|
76,943
|
230,296
|
159,195
|
Provision for income
taxes
|
27,512
|
7,623
|
13,852
|
51,287
|
29,692
|
Loss from equity method
investee
|
9,499
|
3,436
|
985
|
15,961
|
4,750
|
Net income from
continuing operations
|
66,135
|
59,505
|
62,106
|
163,048
|
124,753
|
Net income (loss) from
discontinued
operations, net of tax
|
(1,809)
|
(1,469)
|
560
|
(3,174)
|
560
|
Net Income
(loss)
|
64,326
|
58,036
|
62,666
|
159,874
|
125,313
|
Less: Net income
attributable to
non-controlling interests
|
(264)
|
(871)
|
437
|
(1,532)
|
(272)
|
Net income
attributable to Focus Media
|
64,590
|
58,907
|
62,229
|
161,406
|
125,585
|
|
|
|
|
|
|
Net income from
continuing operations
attributable to Focus Media per ADS
|
|
|
|
|
|
-basic
|
0.52
|
0.47
|
0.47
|
1.28
|
0.93
|
-diluted
|
0.49
|
0.45
|
0.44
|
1.23
|
0.89
|
|
|
|
|
|
|
Net income (loss) from
discontinued operations
attributable to Focus Media per ADS
|
|
|
|
|
|
-basic
|
(0.01)
|
(0.01)
|
0.00
|
(0.02)
|
0.00
|
-diluted
|
(0.01)
|
(0.01)
|
0.00
|
(0.02)
|
0.00
|
|
|
|
|
|
|
Net income attributable
to Focus Media
per ADS
|
|
|
|
|
|
-basic
|
0.51
|
0.46
|
0.47
|
1.26
|
0.93
|
-diluted
|
0.48
|
0.44
|
0.44
|
1.21
|
0.89
|
|
|
|
|
|
|
ADS used in calculating
basic income
per ADS
|
127,777,021
|
128,227,213
|
133,718,768
|
128,428,818
|
134,972,295
|
ADS used in calculating
diluted income
per ADS
|
133,518,344
|
133,103,155
|
139,866,888
|
133,359,921
|
140,567,619
|
|
|
|
|
|
|
|
|
|
|
Focus Media Holding
Limited
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(U.S Dollars in
thousands, except earnings per ADS and ADS data)
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
2012-09-30
|
2012-06-30
|
2011-09-30
|
2012-09-30
|
2011-09-30
|
Net
income
|
64,326
|
58,036
|
62,666
|
159,874
|
125,313
|
Other comprehensive
income, net of tax
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(2,964)
|
(4,983)
|
15,419
|
(7,051)
|
31,934
|
Share of
post-acquisition movements in equity
investee's other comprehensive income
|
(43)
|
242
|
413
|
476
|
1,383
|
Comprehensive
income
|
61,319
|
53,295
|
78,498
|
153,299
|
158,630
|
Comprehensive income
(loss) attributable to
non-controlling interests
|
(286)
|
(963)
|
638
|
(1,629)
|
(62)
|
Comprehensive income
attributable
to Focus Media
|
61,605
|
54,258
|
77,860
|
154,928
|
158,692
|
Note 1: Details of net revenues by segment are as follows (U.S.
Dollars in thousands):
|
Three months
ended
|
Nine months
ended
|
|
2012-09-30
|
2012-06-30
|
2011-09-30
|
2012-09-30
|
2011-09-30
|
Gross
revenues
|
|
|
|
|
|
LCD display
network
|
135,777
|
129,130
|
132,555
|
356,918
|
336,097
|
In-store
network
|
14,879
|
13,954
|
17,367
|
41,838
|
44,111
|
Poster frame
network
|
86,056
|
73,177
|
51,023
|
229,843
|
131,953
|
Movie theater
network
|
23,753
|
15,578
|
13,614
|
58,233
|
31,672
|
Traditional outdoor
billboard network
|
8,554
|
10,069
|
12,404
|
28,692
|
36,116
|
Total gross
revenues
|
269,019
|
241,908
|
226,963
|
715,524
|
579,949
|
Less: Sales
taxes
|
|
|
|
|
|
LCD display
network
|
7,358
|
7,078
|
11,995
|
18,893
|
29,142
|
In-store
network
|
413
|
395
|
1,496
|
1,145
|
3,792
|
Poster frame
network
|
4,447
|
4,611
|
4,379
|
13,964
|
11,052
|
Movie theater
network
|
521
|
417
|
623
|
1,427
|
1,619
|
Traditional outdoor
billboard network
|
3
|
399
|
177
|
440
|
514
|
Total sales
taxes
|
12,742
|
12,900
|
18,670
|
35,869
|
46,119
|
Net
revenues
|
|
|
|
|
|
LCD display
network
|
128,419
|
122,052
|
120,560
|
338,025
|
306,955
|
In-store
network
|
14,466
|
13,559
|
15,871
|
40,693
|
40,319
|
Poster frame
network
|
81,609
|
68,566
|
46,644
|
215,879
|
120,901
|
Movie theater
network
|
23,232
|
15,161
|
12,991
|
56,806
|
30,053
|
Traditional outdoor
billboard network
|
8,551
|
9,670
|
12,227
|
28,252
|
35,602
|
Total net
revenues
|
256,277
|
229,008
|
208,293
|
679,655
|
533,830
|
Focus Media Holding
Limited
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASHFLOWS
(U.S. Dollars in
thousands)
|
|
Three months ended
|
Nine months
ended
|
|
2012-09-30
|
2011-09-30
|
2012-09-30
|
2011-09-30
|
Operating
activities:
|
|
|
|
|
Net income
|
64,326
|
2,666
|
159,874
|
125,313
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
—
|
—
|
—
|
—
|
Bad debt
expenses
|
4,002
|
4,466
|
9,159
|
10,258
|
Share-based
compensation
|
16,817
|
15,557
|
50,647
|
46,220
|
Depreciation
|
8,366
|
7,291
|
22,920
|
21,398
|
Amortization of acquired
intangible assets
|
2,762
|
3,970
|
9,137
|
11,514
|
Loss from equity method
investee
|
9,499
|
985
|
15,961
|
4,750
|
Change in fair value of
contingent consideration liabilities for acquisition of
subsidiaries
|
211
|
—
|
1,179
|
—
|
Write-off of long-term
assets
|
—
|
—
|
—
|
990
|
Others
|
1,346
|
1,798
|
2,143
|
1,940
|
Net changes in current
assets and current liabilities, net of effects of
acquisitions
|
(29,413)
|
(10,465)
|
(55,215)
|
(71,018)
|
Net cash provided by
operating activities
|
77,916
|
86,268
|
215,805
|
151,365
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchase of equipment
and other long term assets
|
(5,010)
|
(6,058)
|
(14,838)
|
(23,425)
|
Payment to acquire
subsidiaries, net of cash acquired
|
(577)
|
(7,262)
|
(2,929)
|
(12,622)
|
Proceeds from disposal
of
subsidiaries
|
1,126
|
—
|
1,126
|
7,296
|
Cash of disposed
entities
|
(1,782)
|
—
|
(1,782)
|
—
|
Investment in equity
method investee
|
—
|
—
|
—
|
(61,003)
|
Cash deposited as
restricted cash
|
—
|
—
|
(26,514)
|
—
|
Cash received from the
release of restricted cash
|
7,495
|
—
|
26,366
|
—
|
Proceeds received from
the sale of short-term investments
|
93,844
|
490,972
|
356,061
|
878,037
|
Proceeds used in investment in
short-term investments
|
(94,174)
|
(505,921)
|
(342,658)
|
(937,663)
|
Proceeds received from
disposal of fixed assets
|
—
|
125
|
340
|
572
|
|
|
|
|
|
Net cash provided by/
(used in) investing activities
|
922
|
(28,144)
|
(4,828)
|
(148,808)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds received from
bank loans
|
—
|
30,000
|
63,794
|
30,000
|
Repayment of short-term
bank loans
|
(7,514)
|
—
|
(34,017)
|
—
|
Share
repurchase
|
—
|
(66,106)
|
(41,445)
|
(69,106)
|
Dividend
payout
|
(17,365)
|
—
|
(35,302)
|
—
|
(Repayment to) capital
injection from non-controlling interests
|
—
|
—
|
—
|
(76)
|
Proceeds from issuance
of ordinary shares, net of issuance costs
|
21
|
1,260
|
34
|
1,828
|
Net cash used in
financing activities
|
(24,858)
|
(34,846)
|
(46,936)
|
(37,354)
|
Effect of exchange rate
changes
|
(651)
|
7,340
|
(2,548)
|
15,643
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
53,329
|
30,618
|
161,493
|
(19,154)
|
Cash and cash
equivalents, beginning of period
|
439,383
|
404,704
|
331,219
|
454,476
|
Less: Cash and cash
equivalents in held-for-sale assets
|
983
|
—
|
983
|
—
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
491,729
|
435,322
|
491,729
|
435,322
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Income taxes
paid
|
9,201
|
3,321
|
37,107
|
24,612
|
Interest paid
|
1,306
|
105
|
3,398
|
105
|
|
|
|
|
|
Supplemental disclosure
of non-cash investing activity:
|
|
|
|
|
Accrual for
acquisition of subsidiaries
|
665
|
22,092
|
665
|
22,092
|
SOURCE Focus Media Holding Limited