NEW YORK, Aug. 14, 2013 /PRNewswire/ --YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), the first national Video On Demand (VOD) platform in China, today announced its operating results for the three- and six-month periods ending June 30, 2013 (a full copy of its quarterly report on Form 10-Q will be posted at www.sec.gov). Chairman Shane McMahon and President and CFO Marc Urbach are hosting an investor update conference call today at 4:30 p.m. ET to discuss the Company's recent results. The conference call dial-in is (800) 616-4018.
Marc Urbach, YOU On Demand's President & CFO, stated, "The cash and cash equivalents line item on our balance sheet at June 30 does not reflect two significant transactions that closed subsequent to the end of our most recent fiscal quarter which will ultimately provide gross proceeds totaling approximately $8.7 million: C Media's Phase 1 strategic investment and the sale of YOU On Demand's legacy Jinan Broadband asset. Further, as a result of the sale of Jinan Broadband, weare now exclusively focused onoperatingYOU On Demand's VOD platform."
Shane McMahon, YOU On Demand's Chairman, concluded, "With our liquidity position much improved, our management team better-aligned and key mobile partner C Media onboard, we believe YOD is in a strong position to further leverage its growing brand and catalogue of premium content, by exploring popular platforms such as mobile and internet, which will complement our existing digital cable platform."
It is important to note that YOU On Demand's revenues for the prior-year quarter and six-month periods principally reflect the operations of one of its two legacy businesses (Shandong Media), which has subsequently been sold (except for a 30% interest).Current quarter and six-month 2013 revenues do not reflect contributions from either holding.
About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD) is the first national Video On Demand platform inChina. The Company offers premium content, including leadingHollywoodandChina-produced movie titles, to customers acrossChinathrough its Transactional Video On Demand (TVOD), Subscription Video On Demand (SVOD) and Near Video On Demand (NVOD) services. YOU On Demand has secured alliances with leading global media operators and content developers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities inChina, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered inNew York, NYwith itsChinaheadquarters in Beijing.
YOU On Demand currently has content deals in place with many ofHollywood's top studios including Disney Media Distribution, Paramount Pictures, Universal Pictures, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
CONTACT: | |
Jason Finkelstein | Robert Rinderman or Norberto Aja |
YOU On Demand | JCIR - Investor Relations/Corporate Communications |
212-206-1216 | 212-835-8500 |
jason.finkelstein@yod.com | YOD@jcir.com |
@youondemand |
- Financial Tables Follow -
YOU On Demand Holdings, Inc. and Its Subsidiaries | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
Revenue | $ 50,619 | $ 931,458 | $ 51,557 | $ 1,695,526 | |||||||||
Cost of revenue | 790,019 | 1,064,554 | 1,638,604 | 2,024,782 | |||||||||
Gross Loss | (739,400) | (133,096) | (1,587,047) | (329,256) | |||||||||
Operating expense: | |||||||||||||
Selling, general and administrative expenses | 1,997,561 | 2,388,356 | 3,899,940 | 4,799,557 | |||||||||
Professional fees | 299,027 | 528,415 | 625,312 | 940,792 | |||||||||
Depreciation and amortization | 173,394 | 550,233 | 466,227 | 1,091,589 | |||||||||
Impairments of long-lived assets | 311,249 | - | 311,249 | - | |||||||||
Total operating expense | 2,781,231 | 3,467,004 | 5,302,728 | 6,831,938 | |||||||||
Loss from operations | (3,520,631) | (3,600,100) | (6,889,775) | (7,161,194) | |||||||||
Interest & other income / (expense) | |||||||||||||
Interest income | 225 | 1,215 | 574 | 2,403 | |||||||||
Interest expense | (29,929) | (18,643) | (59,638) | (19,897) | |||||||||
Stock purchase right | - | (43,748) | - | (43,748) | |||||||||
Change in fair value of warrant liabilities | (4,885) | - | (30,290) | - | |||||||||
Change in fair value of contingent consideration | (42,046) | 248,632 | (83,694) | (463,433) | |||||||||
Gain (loss) on investment in unconsolidated entities | 2,275 | (8,314) | (719) | (12,506) | |||||||||
Loss on write-off of uncollectible loans | - | (473,698) | - | (473,698) | |||||||||
Other | 71,777 | (58,383) | 70,596 | (58,562) | |||||||||
Net loss before income taxes and noncontrolling interest | (3,523,214) | (3,953,039) | (6,992,946) | (8,230,635) | |||||||||
Income tax benefit | 29,821 | 100,082 | 60,961 | 170,100 | |||||||||
Net loss from continuing operations | (3,493,393) | (3,852,957) | (6,931,985) | (8,060,535) | |||||||||
Net loss from discontinued operations | (97,823) | (397,467) | (334,398) | (974,418) | |||||||||
Net loss | (3,591,216) | (4,250,424) | (7,266,383) | (9,034,953) | |||||||||
Plus: Net loss attributable to noncontrolling interests | 310,771 | 528,805 | 641,173 | 1,093,262 | |||||||||
Net loss attributable to YOU On Demand shareholders | $ (3,280,445) | $ (3,721,619) | $ (6,625,210) | $ (7,941,691) | |||||||||
Basic earnings per share | |||||||||||||
Loss from continuing operations | $ (0.22) | $ (0.33) | (0.44) | $ (0.71) | |||||||||
Loss from discontinued operations | nil | (0.02) | (0.01) | (0.05) | |||||||||
Basic earnings per share | $ (0.22) | $ (0.35) | (0.45) | $ (0.76) | |||||||||
Diluted earnings per share | |||||||||||||
Loss from continuing operations | $ (0.22) | $ (0.33) | (0.44) | $ (0.71) | |||||||||
Loss from discontinued operations | nil | (0.02) | (0.01) | (0.05) | |||||||||
Diluted earnings per share | $ (0.22) | $ (0.35) | (0.45) | $ (0.76) | |||||||||
Weighted average shares outstanding | |||||||||||||
Basic | 14,938,780 | 10,530,916 | 14,771,261 | 10,499,247 | |||||||||
Diluted | 14,938,780 | 10,530,916 | 14,771,261 | 10,499,247 | |||||||||
YOU On Demand Holdings, Inc. and Its Subsidiaries | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
June 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
(Unaudited) | ||||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ 291,804 | $ 3,277,891 | ||||||||||
Marketable equity securities, available for sale | 1,371 | 2,229 | ||||||||||
Accounts receivable, net | 16,344 | - | ||||||||||
Licensed content, current | 994,125 | 681,457 | ||||||||||
Prepaid expenses | 308,394 | 412,669 | ||||||||||
Other current assets | 80,678 | 135,486 | ||||||||||
Current assets of discontinued operations | 1,226,294 | 1,498,852 | ||||||||||
Total current assets | 2,919,010 | 6,008,584 | ||||||||||
Property and equipment, net | 611,431 | 729,763 | ||||||||||
Licensed content, noncurrent | 280,505 | 530,367 | ||||||||||
Intangible assets, net | 2,786,345 | 3,416,858 | ||||||||||
Goodwill | 6,105,478 | 6,105,478 | ||||||||||
Investment in unconsolidated entities | 667,855 | 655,834 | ||||||||||
Non-current assets of discontinued operations | 4,803,367 | 5,011,161 | ||||||||||
Total assets | $ 18,173,991 | $ 22,458,045 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ 2,434,474 | $ 885,366 | ||||||||||
Accrued expenses and liabilities | 1,412,708 | 953,134 | ||||||||||
Deferred license fees, current | 856,467 | - | ||||||||||
Other current liabilities | 69,907 | 708,367 | ||||||||||
Contingent purchase price consideration liability, current | 410,475 | 368,628 | ||||||||||
Convertible promissory note | 3,000,000 | 3,000,000 | ||||||||||
Warrant liabilities | 908,670 | 878,380 | ||||||||||
Current liabilities of discontinued operations | 4,982,826 | 5,197,450 | ||||||||||
Total current liabilities | 14,075,527 | 11,991,325 | ||||||||||
Deferred license fees, noncurrent | - | 460,547 | ||||||||||
Contingent purchase price consideration liability | 410,475 | 368,628 | ||||||||||
Deferred tax and uncertain tax position liabilities | 176,114 | 237,075 | ||||||||||
Non-current liabilities of discontinued operations | 68,774 | 68,774 | ||||||||||
Total liabilities | 14,730,890 | 13,126,349 | ||||||||||
Commitments and Contingencies | ||||||||||||
Convertible redeemable preferred stock, $.001 par value; 50,000,000 | ||||||||||||
Shares authorized | ||||||||||||
Series A - 7,000,000 shares issued and outstanding, liquidation preference of $3,500,000 atJune 30, 2013 and December 31, 2012, respectively | 1,261,995 | 1,261,995 | ||||||||||
Series B - 0 and 7,866,800 shares issued and outstanding, liquidation preference of $0 and $3,933,400 atJune 30, 2013 and December 31, 2012, respectively | - | 3,223,575 | ||||||||||
Series C - 250,000 shares issued and outstanding, liquidation preference of $1,000,000 atJune 30, 2013 and December 31, 2012, respectively | 627,868 | 627,868 | ||||||||||
Equity: | ||||||||||||
Common stock, $.001 par value; 1,500,000,000 shares authorized, 15,288,040 and 13,742,394 shares issued at June 30, 2013 and December 31, 2012, respectively | 15,288 | 13,742 | ||||||||||
Additional paid-in capital | 66,886,440 | 62,388,502 | ||||||||||
Accumulated deficit | (65,466,874) | (58,841,664) | ||||||||||
Accumulated other comprehensive income | 686,568 | 604,632 | ||||||||||
Total YOU On Demand equity | 2,121,422 | 4,165,212 | ||||||||||
Noncontrolling interests | (568,184) | 53,046 | ||||||||||
Total equity | 1,553,238 | 4,218,258 | ||||||||||
Total liabilities and equity | $ 18,173,991 | $ 22,458,045 | ||||||||||
SOURCE YOU On Demand Holdings, Inc.
