BEIJING, March 15, 2013 /PRNewswire/ -- Ku6 Media Co., Ltd. ("Ku6 Media" or the "Company," NASDAQ: KUTV), a leading internet video company focused on User Generated Content ("UGC") in China, today announced unaudited financial results for the fourth quarter and full year of fiscal year ended December 31, 2012.
Fourth Quarter 2012 Highlights(1)
- Total revenues were US$3.35 million (RMB20.87 million) in the fourth quarter of 2012, representing an increase of 9.6% from US$3.06 million in the third quarter of 2012 and a decrease of 24.2% from US$4.42 million in the fourth quarter of 2011.
- GAAP net loss was US$2.98 million (RMB18.57 million), as compared to a net loss of US$3.25 million in the third quarter of 2012 and US$3.94 million in the fourth quarter of 2011. Non-GAAP net loss, which the Company defines as net loss excluding share-based compensation expenses, was US$2.96 million (RMB18.45 million) in the fourth quarter of 2012, as compared to non-GAAP net loss of US$3.26 million in the third quarter of 2012 and US$4.46 million in the fourth quarter of 2011.
- Basic and diluted loss per ADS was US$0.06 (RMB0.39) in the fourth quarter of 2012, as compared to US$0.07 in the third quarter of 2012 and US$0.08 in the fourth quarter of 2011.
- Cash and cash equivalents were US$13.07 million (RMB81.43 million) as of December 31, 2012.
- Net cash used in operating activities was US$3.68 million (RMB22.95 million) in the fourth quarter of 2012, as compared to US$1.92 million in the third quarter of 2012 and US$13.57 million in the fourth quarter of 2011.
Fiscal Year 2012 Highlights(1)
- Total revenues were US$14.12 million (RMB87.94 million) in 2012, as compared to US$19.22 million in 2011.
- GAAP net loss was US$9.49 million (RMB59.13 million) in 2012, as compared to US$49.39 million in 2011. Non-GAAP net loss, which the Company defines as net loss excluding share-based compensation expenses, was US$9.03 million (RMB56.24 million) in 2012, as compared to non-GAAP net loss of US$48.16 million in 2011.
- Basic and diluted loss per ADS was US$0.19 (RMB1.21) in 2012, as compared to US$1.16 in 2011.
- Net cash used in operating activities was US$8.09 million (RMB50.38 million) in 2012, as compared to US$39.17 million in 2011.
(1) | The reporting currency of the Company is the United States dollar ("U.S. dollar"), but solely for the convenience of the reader, the amounts of Renminbi ("RMB") presented throughout the release were calculated at the rate of US$1.00=RMB6.2301, representing the noon buying rate as of December 31, 2012 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. This convenience translation is not intended to imply that the U.S. dollar amounts could have been, or could be, converted, realized or settled into RMB at that rate on December 31, 2012, or at any other rate. |
"I am pleased to announce our fourth quarter and fiscal year 2012 earnings release," Mr. Jeff Shi, Chief Executive Officer of Ku6 Media, commented, "2012 was an essential year to Ku6 Media, was the first full year since we switched our strategy to UGC business model in the third quarter of 2011. In 2012, user experience continued to be the top priority for our business. Keeping that in mind, we upgraded the backend infrastructure for our video service, polished our products by introducing major new features and established a loyal content production team with over 20,000 users. We also expanded our mobile product portfolio as 3G became more and more popular. Furthermore, we managed to reduce our cost significantly through 2012 and kept our net loss at a relatively low level of our industry. We believe with the progress we achieved in 2012, 2013 will be an even faster growing year for Ku6 Media."
Fourth Quarter 2012 Financial Results
Total revenues were US$3.35 million (RMB20.87 million) in the fourth quarter of 2012, representing an increase of 9.6% from US$3.06 million in the third quarter of 2012 and a decrease of 24.2% from US$4.42 million in the fourth quarter of 2011.
In the second quarter of 2011, the Company started to generate advertising revenues primarily from performance advertising services using a system called Application Advertisement ("AA"). The performance advertising revenue was realized through an affiliated advertising agent which is under common control of Shanda Interactive Entertainment Limited, the Company's majority shareholder. The Company generated 87.5% of total revenues in the fourth quarter of 2012 through this affiliated advertising agent, as compared to 94.6% of total revenues in the third quarter of 2012.
Cost of revenues was US$3.75 million (RMB23.36 million) in the fourth quarter of 2012, representing an increase of 2.4% from US$3.66 million in the third quarter of 2012 and a decrease of 11.4% from US$4.23 million in the fourth quarter of 2011.
Gross loss was US$0.40 million (RMB2.49 million) in the fourth quarter of 2012, as compared to a gross loss of US$0.61 million in the third quarter of 2012 and a gross profit of US$0.19 million in the fourth quarter of 2011. Non-GAAP gross loss, which is herein defined as a gross loss excluding share-based compensation expenses, was US$0.33 million (RMB2.07 million) in the fourth quarter of 2012, as compared to a non-GAAP gross loss of US$0.58 million in the third quarter of 2012 and US$0.02 million in the fourth quarter of 2011. The decrease in non-GAAP gross loss as compared to the third quarter of 2012 was primarily attributable to the increase in revenues.
Operating expenses were US$3.17 million (RMB19.72 million) in the fourth quarter of 2012, representing an increase of 11.1% from US$2.85 million in the third quarter of 2012 and a decrease of 27.7% from US$4.38 million in the fourth quarter of 2011. Non-GAAP operating expenses, which is herein defined as operating expenses excluding share-based compensation expenses, were US$3.21 million (RMB20.02 million) in the fourth quarter of 2012, as compared to non-GAAP operating expenses of US$2.88 million in the third quarter of 2012 and US$4.69 million in the fourth quarter of 2011. The sequential increase was mainly attributable to expenditures on marketing and branding promotion activities held in the fourth quarter of 2012.
Operating loss was US$3.57 million (RMB22.21 million) in the fourth quarter of 2012, representing an increase of 3.2% from US$3.46 million in the third quarter of 2012 and a decrease of 14.9% from US$4.19 million in the fourth quarter of 2011. Non-GAAP operating loss, which reflects the exclusion of share-based compensation expenses, was US$3.55 million (RMB22.09 million) in the fourth quarter of 2012, as compared to the non-GAAP operating loss of US$3.46 million in the third quarter of 2012 and US$4.71 million in the fourth quarter of 2011.
Net loss was US$2.98 million (RMB18.57 million) in the fourth quarter of 2012, representing a decrease of 8.3% from US$3.25 million in the third quarter of 2012 and a decrease of 24.3% from US$3.94 million in the fourth quarter of 2011. Non-GAAP net loss, which reflects the exclusion of share-based compensation expenses, was US$2.96 million (RMB18.45 million) in the fourth quarter of 2012, as compared to US$3.26 million in the third quarter of 2012 and US$4.46 million in the fourth quarter of 2011. The decrease in net loss as compared to the third quarter of 2012 was primarily attributable to (1) a US$0.29 million (RMB1.83 million) increase in revenues and (2) a US$0.27 million (RMB1.66 million) increase in government subsidy benefits, partially offset by increased expenditures on marketing and branding promotion activities held in the fourth quarter of 2012.
Net loss attributable to Ku6 Media was US$2.98 million (RMB18.57 million) in the fourth quarter of 2012, as compared to US$3.25 million in the third quarter of 2012 and US$3.94 million in the fourth quarter of 2011. Non-GAAP net loss attributable to Ku6 Media, reflecting the exclusion of share- based compensation expenses, was US$2.96 million (RMB18.45 million) in the fourth quarter of 2012, as compared to the non-GAAP net loss attributable to Ku6 Media of US$3.26 million in the third quarter of 2012 and US$4.46 million in the fourth quarter of 2011.
Net loss attributable to Ku6 Media per basic and diluted ADS was US$0.06 (RMB0.39) in the fourth quarter of 2012, as compared to US$0.07 in the third quarter of 2012 and US$0.08 in the fourth quarter of 2011. Weighted average ADSs used to calculate basic and diluted net loss per ADS were 47.4 million in the fourth quarter of 2012, 48.3 million in the third quarter of 2012 and 50.2 million in the fourth quarter of 2011.
Adjusted EBITDA loss, which is herein defined as net loss attributable to Ku6 Media before interest income, interest expenses, income taxes, depreciation and amortization (excluding amortization and write-down of licensed video copyrights), further adjusted for share-based compensation expenses, equity in loss of affiliates and other non-operating items, was US$2.60 million (RMB16.19 million) in the fourth quarter of 2012, as compared to adjusted EBITDA loss of US$2.58 million in the third quarter of 2012 and US$3.86 million in the fourth quarter of 2011.
As of December 31, 2012, the Company had US$13.07 million (RMB81.43 million) in cash and cash equivalents, compared to US$12.55 million as of September 30, 2012. The slight increase was primarily due to a US$4.30 million (RMB26.79 million) repayment of loans owed to a related party, partially offset by the net cash used in operating activities in the amount of US$3.68 million (RMB22.95 million) in the fourth quarter of 2012.
Fiscal Year 2012 Financial Results
Total revenues were US$14.12 million (RMB87.94 million) in 2012, compared to US$19.22 million in 2011.
Cost of revenues was US$14.60 million (RMB90.98 million) in 2012, representing 103.5% of total revenues, as compared to US$30.88 million, 160.7% of revenues in 2011. The change of content strategy since the second quarter of 2011 from long-form professional content to UGC is the main reason for the significant decrease in cost of revenues.
Gross loss was US$0.49 million (RMB3.04 million) in 2012, as compared to a gross loss of US$11.66 million in 2011. Non-GAAP gross loss was US$0.33 million (RMB2.04 million) in 2012, as compared to a non-GAAP gross loss of US$11.34 million in 2011.
Operating expenses were US$10.48 million (RMB65.30 million) in 2012 as compared to US$37.91 million in 2011. Non-GAAP operating expenses were US$10.18 million (RMB63.41 million) in 2012 as compared to non-GAAP operating expenses of US$37.00 million in 2011. As the Company changed its business strategy in the second quarter of 2011, operating expenses decreased in 2012 in terms of: (1) labor costs as a result of restructuring of sales department; (2) sales and marketing expenses as a result of transition from branding advertising to performance advertising; (3) bad debt expenses as a result of collection of accounts receivable previously written down; (4) loss from disposal of network equipments due to technological upgrade; (5) litigation expenses for possible copyright lawsuits; and (6) impairment for intangible assets.
Operating loss was US$10.97 million (RMB68.34 million) in 2012 as compared to US$49.57 million in 2011. Non-GAAP operating loss was US$10.51 million (RMB65.45 million) in 2012 as compared to the non-GAAP operating loss of US$48.34 million in 2011.
Net loss was US$9.49 million (RMB59.13 million) in 2012 as compared to US$49.39 million in 2011. Non-GAAP net loss was US$9.03 million (RMB56.24 million) in 2012 as compared to US$48.16 million in 2011.
Net loss attributable to Ku6 Media was US$9.49 million (RMB59.13 million) in 2012 as compared to US$49.34 million in 2011. Non-GAAP net loss attributable to Ku6 Media was US$9.03 million (RMB56.24 million) in 2012 as compared to US$48.11 million in 2011.
Net loss attributable to Ku6 Media per basic and diluted ADS was US$0.19 (RMB1.21) in 2012 as compared to US$1.16 in 2011. Weighted average ADSs used to calculate basic and diluted net loss per ADS were 49.0 million in 2012 and 42.7 million in 2011.
Adjusted EBITDA loss was US$7.01 million (RMB43.65 million) in 2012 as compared to adjusted EBITDA loss of US$43.09 million in 2011.
Recent Business Developments
Ranked No.1 Among the Most Influential Video Websites in Terms of UGC by KY-Research
In February 2013, the Company was ranked No.1 among the most influential video websites in terms of user-generated content in China in a research report published by KY-Research.com, a well-known market research institution in China. According to KY-Research's report, the research was conducted based on three major indexes: search results on search engine websites, content quoted by seven major portal websites and content quoted by peer websites.
Share Repurchase Program of 2011
Pursuant to a share repurchase program announced on December 30, 2011, the Company's Board of Directors have authorized the Company to repurchase up to an aggregate of US$3.2 million of its outstanding ADSs from time to time following the date thereof, based on market conditions. As of December 31, 2012, the Company has repurchased 99,585 ADSs from open market under this program.
Conference Call Information
Ku6's management team will be hosting a corresponding conference call at 8:00am EDT on Friday, March 15, 2013 (8:00pm Beijing time on the same day).
Dial-in numbers:
International Dial-in Number: | +65 67239381 | ||
United States Toll Free Number: | 18665194004 | ||
Mainland China Toll Free Number: | 4006208038 / 8008190121 | ||
Hong Kong Toll Free Number: | 800930346 | ||
Conference ID: | 21965063 |
A replay will be available from 10:00am March 15, 2013 EDT for 7 days.
International Dial-in Number: | +61 2 8199 0299 | |||
United States Toll Free Number: | 18554525696 | |||
Mainland China Toll Free Number: | 4001200932 / 8008700205 | |||
Hong Kong Toll Free Number: | 800963117 | |||
Conference ID: | 21965063 | |||
A live and archived webcast of the conference call will also be available at http://www.media-server.com/m/p/v73ay88z.
About Ku6 Media Co., Ltd.
Ku6 Media Co., Ltd. (NASDAQ: KUTV) is a leading internet video company in China focused on User Generated Content ("UGC"). Through its premier online brand and online video website,www.ku6.com, Ku6 Media provides online video uploading and sharing service, video reports, information and entertainment in China. For more information about Ku6 Media, please visithttp://ir.ku6.com.
Forward-looking Statements
This news release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "believes," "could," "expects," "may," "might," "should," "will," or "would," and by similar statements. Forward-looking statements are not historical facts, but instead represent only the Company's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of its control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Some of the risks and important factors that could affect the Company's future results and financial condition include: continued competitive pressures in China's internet video portal market; changes in technology and consumer demand in this market; the risk that Ku6 Media may not be able to control its expenses in the future; regulatory changes in China with respect to the operations of internet video portal websites; the success of Ku6 Media's ability to sell advertising and other services on its websites; and other risks outlined in the Company's filings with the Securities and Exchange Commission,including the Company's annual report on Form 20-F. Ku6 Media does not undertake any obligation to update this forward-looking information, except as required under law.
About Non-GAAP Financial Measures
To supplement Ku6 Media's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Ku6 Media uses the following measures defined as non-GAAP financial measures by the SEC in evaluating its business: non-GAAP gross profit or loss, non-GAAP operating expenses, non-GAAP product development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss attributable to Ku6 Media and adjusted EBITDA loss. We define non-GAAP gross profit or loss, non-GAAP operating expenses, non-GAAP product development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss attributable to Ku6 Media as the respective nearest comparable GAAP financial measure excluding share-based compensation expenses. We define adjusted EBITDA loss as net loss attributable to Ku6 Media before interest income, interest expenses, income taxes, depreciation and amortization (excluding amortization and write-down of licensed video copyrights), further adjusted for share-based compensation expenses, equity in loss of affiliates and other non-operating items. We present non-GAAP financial measures because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies.A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses inKu6 Media's business for the foreseeable future.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP financial measures" at the end of this release.
Ku6 Media Co., Ltd | |||
Consolidated Balance Sheets | |||
(Amounts in thousands, except for number of shares) | |||
December31, 2011 US$ | December31, 2012 US$ (Unaudited) | December31, 2012 RMB (Unaudited) | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 26,751 | 13,071 | 81,434 |
Restricted cash | 3,600 | - | - |
Accounts receivable, net | 777 | 67 | 418 |
Accounts receivable due from related parties | 2,740 | 4,399 | 27,406 |
Prepaid expenses and other current assets | 884 | 523 | 3,258 |
Other receivables due from related parties | 19,539 | 6,097 | 37,985 |
Total current assets | 54,291 | 24,157 | 150,501 |
Non-current assets: | |||
Deposits | 307 | 310 | 1,931 |
Property and equipment, net | 3,593 | 2,918 | 18,180 |
Acquired intangible assets, net | 24,111 | 22,552 | 140,501 |
Investment in equity affiliate | 255 | - | - |
Goodwill | 6,233 | 6,233 | 38,832 |
Total non-current assets | 34,499 | 32,013 | 199,444 |
TOTAL ASSETS | 88,790 | 56,170 | 349,945 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term borrowings | 3,178 | - | - |
Accounts payable | 6,365 | 4,645 | 28,939 |
Accounts payable due to related parties | - | - | - |
Accrued expenses and other current liabilities | 10,016 | 9,353 | 58,270 |
Other payables due to related parties | 13,552 | 3,780 | 23,550 |
Total current liabilities | 33,111 | 17,778 | 110,759 |
Non-current deferred tax liabilities | 4,826 | 4,826 | 30,066 |
Total liabilities | 37,937 | 22,604 | 140,825 |
Shareholders' equity: | |||
Ordinary shares (US$0.00005 par value; 12,000,000,000 shares authorized; 5,019,786,036 shares and 4,732,446,560 shares issued and outstanding as of December 31, 2011 and December 31, 2012, respectively) | 251 | 236 | 1,470 |
Additional paid-in capital | 184,874 | 177,183 | 1,103,868 |
Accumulated deficit | (132,449) | (141,940) | (884,300) |
Accumulated other comprehensive loss | (1,823) | (1,913) | (11,918) |
Total Ku6 Media Co., Ltd. shareholders' equity | 50,853 | 33,566 | 209,120 |
Non-controlling interests | - | - | - |
Total shareholders' equity | 50,853 | 33,566 | 209,120 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 88,790 | 56,170 | 349,945 |
TABLE
Ku6 Media Co., Ltd. | |||||||
Consolidated Statements of Operations | |||||||
(Amountsinthousands,exceptfor number of shares and ADS and per share and per ADS data) | |||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||
December31, 2011 | September30, 2012 | December31, 2012 | December31, 2012 | December31, 2011 | December 31, 2012 | December31, | |
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||
Revenues: | |||||||
Advertising | |||||||
Third parties | 977 | 161 | 419 | 2,610 | 11,146 | 1,633 | 10,174 |
Related parties | 3,444 | 2,895 | 2,931 | 18,261 | 8,076 | 12,482 | 77,764 |
Total revenues | 4,421 | 3,056 | 3,350 | 20,871 | 19,222 | 14,115 | 87,938 |
Cost of revenues: | |||||||
Advertising | |||||||
Third parties | 4,233 | 3,662 | 3,750 | 23,363 | 30,501 | 14,603 | 90,978 |
Related parties | - | - | - | - | 380 | - | - |
Total cost of revenues | 4,233 | 3,662 | 3,750 | 23,363 | 30,881 | 14,603 | 90,978 |
Gross profit (loss) | 188 | (606) | (400) | (2,492) | (11,659) | (488) | (3,040) |
Operating expenses: | |||||||
Product development | 592 | 468 | 563 | 3,508 | 2,693 | 1,973 | 12,292 |
Sales and marketing | 16 | 283 | 797 | 4,965 | 11,815 | 1,689 | 10,523 |
General and administrative | 3,767 | 2,098 | 1,805 | 11,245 | 23,404 | 6,820 | 42,489 |
Total operating expenses | 4,375 | 2,849 | 3,165 | 19,718 | 37,912 | 10,482 | 65,304 |
Operating loss | (4,187) | (3,455) | (3,565) | (22,210) | (49,571) | (10,970) | (68,344) |
Interest income | 82 | 129 | 158 | 984 | 171 | 620 | 3,863 |
Other income | 563 | 256 | 481 | 2,997 | 1,293 | 1,730 | 10,778 |
Interest expenses | (333) | (114) | (55) | (343) | (1,119) | (619) | (3,857) |
Equity in loss of affiliates | (63) | (66) | - | - | (264) | (252) | (1,570) |
Loss before income tax expense | (3,938) | (3,250) | (2,981) | (18,572) | (49,490) | (9,491) | (59,130) |
Income tax benefit | - | - | - | - | 99 | - | - |
Net loss | (3,938) | (3,250) | (2,981) | (18,572) | (49,391) | (9,491) | (59,130) |
Less: Net loss attributable to non-controlling interests | - | - | - | - | 47 | - | - |
Net loss attributable to Ku6 | (3,938) | (3,250) | (2,981) | (18,572) | (49,344) | (9,491) | (59,130) |
Loss per share - basic and diluted | |||||||
Net loss attributable to Ku6 Media | (US$0.00) | (US$0.00) | (US$0.00) | (RMB0.00) | (US$0.01) | (US$0.00) | (RMB0.01) |
Loss per ADS - basic and diluted | |||||||
Net loss attributable to Ku6 Media | (US$0.08) | (US$0.07) | (US$0.06) | (RMB0.39) | (US$1.16) | (US$0.19) | (RMB1.21) |
Weighted average shares used in per share calculation - basic and | 5,019,786,036 | 4,832,763,530 | 4,735,357,337 | 4,735,357,337 | 4,265,277,638 | 4,901,279,176 | 4,901,279,176 |
Weighted average ADSs used in per ADS calculation - basic and | 50,197,860 | 48,327,635 | 47,353,573 | 47,353,573 | 42,652,776 | 49,012,792 | 49,012,792 |
TABLE
Ku6 Media Co., Ltd. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
(Amounts in thousands) | December31, 2011 | September30, 2012 | December31, 2012 | December31, 2012 | December31, 2011 | December31, 2012 | December31, 2012 | |
US$ | US$ | US$ | RMB | US$ | US$ | RMB | ||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||
Cashflowsfromoperatingactivities: | ||||||||
Net loss | (3,938) | (3,250) | (2,981) | (18,572) | (49,391) | (9,491) | (59,130) | |
Adjustmentstoreconcilenetlosstonetcashusedin | ||||||||
Share-based compensation (reversal) | (522) | (5) | 20 | 125 | 1,232 | 464 | 2,891 | |
Share-based compensation cost in relation to disposition of Yisheng | - | - | - | - | 522 | - | - | |
Depreciation and amortization | 851 | 877 | 947 | 5,900 | 5,198 | 3,500 | 21,805 | |
Amortization and write-down of licensed video copyrights | 294 | - | - | - | 3,723 | 1 | 6 | |
Impairment of intangible assets | - | - | - | - | 1,365 | - | - | |
Bad debt provision (reversal) | (63) | (187) | (53) | (330) | 3,459 | (2,255) | (14,049) | |
Reversal of legal provision | - | - | - | - | - | (565) | (3,520) | |
Exchange loss (gain) | (25) | (93) | (59) | (368) | 292 | (160) | (997) | |
Equity in loss of affiliates | 63 | 66 | - | - | 264 | 252 | 1,570 | |
Loss (gain) on disposalofpropertyandequipments | - | - | 49 | 305 | 2,978 | 28 | 175 | |
Changesinassetsandliabilities,netofacquisitionsand | ||||||||
Accounts receivable | 1,600 | 188 | (23) | (143) | 3,817 | 2,946 | 18,354 | |
Prepaid expenses and other current assets | (319) | (290) | 215 | 1,339 | (1,519) | 360 | 2,243 | |
Amount due from related parties | (174) | 232 | (1,144) | (7,127) | (3,912) | (1,747) | (10,884) | |
Deposits and other non-current assets | (23) | - | - | - | (308) | - | - | |
Inventories | - | - | - | - | 31 | - | - | |
Accounts payable | (8,768) | 658 | (104) | (648) | (7,906) | (1,485) | (9,252) | |
Accrued expenses and other current liabilities | (2,617) | (171) | (605) | (3,769) | 620 | (97) | (604) | |
Amount due to related parties | 76 | 54 | 55 | 343 | 461 | 162 | 1,009 | |
Income tax payable | - | - | - | - | (99) | - | - | |
Net cash used in operating activities | (13,565) | (1,921) | (3,683) | (22,945) | (39,173) | (8,087) | (50,383) | |
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (1,144) | (1,092) | (5) | (31) | (2,364) | (1,277) | (7,956) | |
Proceeds from disposal of property and equipments | - | - | 1 | 5 | - | 24 | 150 | |
Payments for licensed video copyrights | (153) | (88) | - | - | (5,529) | (236) | (1,470) | |
Cash-out from disposal of subsidiaries, net of cash disposed | - | - | - | - | (112) | - | - | |
Restricted cash for pledge of bank loans | 2,066 | 3,600 | - | - | (3,600) | 3,600 | 22,428 | |
LoanstorelatedpartiesundercommoncontrolbyShanda | - | - | - | - | (14,108) | (470) | (2,928) | |
Repayment of loans to related parties under common control by Shanda | - | - | 4,300 | 26,789 | - | 14,000 | 87,221 | |
Net cash provided by (used in) investing activities | 769 | 2,420 | 4,296 | 26,763 | (25,713) | 15,641 | 97,445 | |
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | - | - | - | - | 4 | - | - | |
Proceeds from issuance of common shares to Shanda | - | - | - | - | 50,000 | - | - | |
Proceeds from issuance of convertible bonds to Shanda | - | - | - | - | 50,000 | - | - | |
Cash paid for redemption of convertible bonds to Shanda | - | - | - | - | (50,000) | - | - | |
Repurchase of ordinary shares | - | (8,083) | (87) | (542) | - | (8,170) | (50,900) | |
Borrowings from bank | 1,084 | - | - | - | 3,177 | - | - | |
Repayment for loans from bank | - | (3,148) | - | - | - | (3,148) | (19,612) | |
Borrowings from related parties under common control by Shanda | - | - | - | - | 13,336 | - | - | |
Repayment of loans from related parties under common control of Shanda | (3,178) | - | - | - | (3,190) | (9,904) | (61,703) | |
Net cash provided by (used in) financing activities | (2,094) | (11,231) | (87) | (542) | 63,327 | (21,222) | (132,215) | |
Effect of exchange rate changes on cash and cash equivalents | 12 | (5) | - | 1 | 1,015 | (12) | (75) | |
Netincrease(decrease)incashandcashequivalents | (14,878) | (10,737) | 526 | 3,277 | (544) | (13,680) | (85,228) | |
Cash and cash equivalents, beginning of period | 41,629 | 23,282 | 12,545 | 78,157 | 27,295 | 26,751 | 166,662 | |
Cash and cash equivalents, end of period | 26,751 | 12,545 | 13,071 | 81,434 | 26,751 | 13,071 | 81,434 | |
Reconciliations of Non-GAAP results of operations measures to the nearest comparable GAAP financial measures (*) | |||||||||||||||
(Amounts in thousands of United States dollars ("US$") and Renminbi ("RMB"), unaudited) | |||||||||||||||
1.Non-GAAP Gross Profit (Loss) | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Grossprofit(loss) | 188 | (606) | (400) | (2,492) | (11,659) | (488) | (3,040) | ||||||||
Addback(deduct): | (211) | 28 | 68 | 424 | 320 | 160 | 997 | ||||||||
Non-GAAPgrossprofit(loss) | (23) | (578) | (332) | (2,068) | (11,339) | (328) | (2,043) | ||||||||
2. Non-GAAP Operating Expenses | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Operatingexpenses | 4,375 | 2,849 | 3,165 | 19,718 | 37,912 | 10,482 | 65,304 | ||||||||
Deduct(addback): | (311) | (33) | (48) | (299) | 912 | 304 | 1,894 | ||||||||
Non-GAAP operating expenses | 4,686 | 2,882 | 3,213 | 20,017 | 37,000 | 10,178 | 63,410 | ||||||||
3.Non-GAAP Product Development Expenses | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Product development expenses | 592 | 468 | 563 | 3,508 | 2,693 | 1,973 | 12,292 | ||||||||
Deduct(addback): | (85) | 22 | 40 | 250 | 260 | 81 | 505 | ||||||||
Non-GAAP product development | 677 | 446 | 523 | 3,258 | 2,433 | 1,892 | 11,787 | ||||||||
4.Non-GAAP Sales and Marketing Expenses | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Sales and marketing expenses | 16 | 283 | 797 | 4,965 | 11,815 | 1,689 | 10,523 | ||||||||
Deduct(addback): | (452) | 8 | 20 | 124 | (8) | 40 | 249 | ||||||||
Non-GAAP sales and | 468 | 275 | 777 | 4,841 | 11,823 | 1,649 | 10,274 | ||||||||
5.Non-GAAP General and Administrative Expenses | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Generalandadministrative | 3,767 | 2,098 | 1,805 | 11,245 | 23,404 | 6,820 | 42,489 | ||||||||
Deduct (add back): | 226 | (63) | (108) | (673) | 660 | 183 | 1,140 | ||||||||
Non-GAAP general and | 3,541 | 2,161 | 1,913 | 11,918 | 22,744 | 6,637 | 41,349 | ||||||||
6.Non-GAAP Operating Loss | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Operatingloss | (4,187) | (3,455) | (3,565) | (22,210) | (49,571) | (10,970) | (68,344) | ||||||||
Add back (deduct): | (522) | (5) | 20 | 125 | 1,232 | 464 | 2,891 | ||||||||
Non-GAAPoperatingloss | (4,709) | (3,460) | (3,545) | (22,085) | (48,339) | (10,506) | (65,453) | ||||||||
7.Non-GAAP Net Loss | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Netloss | (3,938) | (3,250) | (2,981) | (18,572) | (49,391) | (9,491) | (59,130) | ||||||||
Add back (deduct): | (522) | (5) | 20 | 125 | 1,232 | 464 | 2,891 | ||||||||
Non-GAAP net loss | (4,460) | (3,255) | (2,961) | (18,447) | (48,159) | (9,027) | (56,239) | ||||||||
8.Non-GAAP Net Loss Attributable to Ku6 Media Co., Ltd. | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Net loss attributable to | (3,938) | (3,250) | (2,981) | (18,572) | (49,344) | (9,491) | (59,130) | ||||||||
Add back (deduct): | (522) | (5) | 20 | 125 | 1,232 | 464 | 2,891 | ||||||||
Non-GAAP net loss attributableto | (4,460) | (3,255) | (2,961) | (18,447) | (48,112) | (9,027) | (56,239) | ||||||||
9.Adjusted EBITDA Loss | |||||||||||||||
FortheThreeMonthsEnded | FortheTwelveMonthsEnded | ||||||||||||||
December31, | September30, | December31, | December31, | December31, | December31, | December31, | |||||||||
2011 | 2012 | 2012 | 2012 | 2011 | 2012 | 2012 | |||||||||
US$ | US$ | US$ | RMB | US$ | US$ | RMB | |||||||||
Net loss attributable to | (3,938) | (3,250) | (2,981) | (18,572) | (49,344) | (9,491) | (59,130) | ||||||||
Add back (deduct): | |||||||||||||||
Interestincome | (82) | (129) | (158) | (984) | (171) | (620) | (3,863) | ||||||||
Interest expenses | 333 | 114 | 55 | 343 | 1,119 | 619 | 3,857) | ||||||||
Income tax benefit | - | - | - | - | (99) | - | - | ||||||||
Depreciation and amortization | 851 | 877 | 947 | 5,900 | 5,198 | 3,500 | 21,805 | ||||||||
EBITDA loss | (2,836) | (2,388) | (2,137) | (13,313) | (43,297) | (5,992) | (37,331) | ||||||||
Adjustments: | |||||||||||||||
Share-based compensation | (522) | (5) | 20 | 125 | 1,232 | 464 | 2,891 | ||||||||
Equity in loss of affiliates | 63 | 66 | - | - | 264 | 252 | 1,570 | ||||||||
Other income | (563) | (256) | (481) | (2,997) | (1,293) | (1,730) | (10,778) | ||||||||
Adjusted EBITDA loss | (3,858) | (2,583) | (2,598) | (16,185) | (43,094) | (7,006) | (43,648) | ||||||||
*For more information on the Non-GAAP financial measures, please see the section captioned "About Non-GAAP Financial Measures" in the earnings release. | |||||||||||||||
SOURCE Ku6 Media Co., Ltd.
