SHANGHAI, May 20 /PRNewswire-Asia/ -- Focus Media Holding Limited , China's largest digital media group, today announced its unaudited financial results for the first quarter ended March 31, 2010.
Highlights for First Quarter 2010: -- Total net revenue for the first quarter of 2010 was $124.9 million, of which: -- aggregate net revenue from the LCD display network, in-store network and poster frame network was $82.6 million, which exceeded by approximately 5% the mid-point of the Company's guidance range of $78-80 million and; -- aggregate net revenue from the movie theater and traditional outdoor billboard network and Internet advertising services was $42.3 million, which exceeded by approximately 11% the mid-point of the guidance range of $37-39 million. -- GAAP net loss attributable to Focus Media was $1.0 million, compared to net loss attributable to Focus Media of $5.7 million for the first quarter of 2009, and net loss attributable to Focus Media of $53.0 million for the fourth quarter of 2009. -- Non-GAAP net income attributable to Focus Media for the first quarter of 2010 was $23.2 million, also exceeding the Company's guidance range of $20-$23 million, 8% above the median of guidance, compared to non-GAAP net income attributable to Focus Media of $18.6 million for the first quarter of 2009 and non-GAAP net income attributable to Focus Media of $34.1 million for the fourth quarter of 2009. Please see below section on "Use of non-GAAP financial measures" for more information about the non-GAAP measures referred to within this announcement. -- GAAP net loss per ADS was a loss of $0.01, compared to a loss of $0.04 per ADS in the first quarter of 2009 and $0.39 per ADS for the fourth quarter of 2009. -- Non-GAAP net income per fully diluted ADS was $0.16, compared to $0.14 per fully diluted ADS for the first quarter of 2009, and $0.25 per fully diluted ADS for the fourth quarter of 2009. The sequential decline in non-GAAP net income attributable to Focus Media was primarily caused by seasonal decline in our net revenue from LCD display network, poster frame network and in-store network. Highlights for Balance Sheet and Cash Flow Results of First Quarter 2010: -- Cash, cash equivalents and short-term investment was $598.6 million as of March 31, 2010, on par with $597.4 million as of December 31, 2009. -- Net accounts receivable for the LCD display network, in-store network and poster frame network was $98.4 million as of March 31, 2010, a slight increase of 2% from $96.1 million as of December 31, 2009. Days sales outstanding on a rolling basis was 96 days in the first quarter of 2010 versus 88 days for the fourth quarter of 2009, within the expected norm of seasonal fluctuations. -- Net accounts receivable for the movie theater and traditional outdoor billboard network and Internet advertising services was $67.4 million as of March 31, 2010, a decrease of 12% from $76.6 million as of December 31, 2009. -- Net cashflow from operations in the first quarter of 2010 was $5.9 million, representing a decrease of 92% from $72.3 million for the fourth quarter of 2009. The decline was primarily attributable to the following four reasons: 1) increases in advance rental payments we made for the in-store business; 2) payments for income tax accrued in the fourth quarter of 2009; 3) settlement of a business arbitration case, which we have accrued for and disclosed since 2008 and 4) seasonal decline in net revenue. -- Capital expenditures were $1.1 million for the first quarter of 2010. -- Earn-out payments related to historical acquisitions paid in the first quarter of 2010 were $15.2 million, all attributable to the poster frame network.
Jason Jiang, the Chairman and the Chief Executive Officer of the Company said, "As we embark upon a new year, we are encouraged by the continued recovery of our operations as we stabilize our core businesses to take advantage of the recovery of the advertising market in China. We believe our core business continues to offer attractive opportunities for us to potentially double our revenue base over the medium term through steady execution of our business model. While our near term focus remain on monetizing our existing business opportunities in first and second tier cities, we have also started laying the foundation for our medium term growth, as we expand our capacities in third tier cities and beyond."
Kit Low, the Chief Financial Officer of the Company added, "In the first quarter of 2010, the Company achieved aggregate net revenue year on year growth in our LCD display, in-store and poster frame businesses of 29%. The Company continued to focus on cash flow generation during the quarter through improving collection of account receivables. We have seen the balance of account receivables decline sequentially from $172.8 million as of December 31, 2009 to $165.8 million as of March 31, 2010 while the bad debt expenses declined substantially as compared to the fourth quarter of 2009. We do however face some negative working capital cash outflows mainly related to prepayment of rental deposits in our in-store network in exchange for better rental terms, payment of accrued income tax in the fourth quarter of 2009, and settlement of liabilities related to an arbitration case on a disposed business which we accrued and disclosed since 2008. We continue to be confident that our operating cashflow will continue to improve as we progress through the year. Besides our focus on cash flow generation, we will also strive to improve our return on equity as we leverage our improving returns as well as our share repurchases."
First Quarter 2010 financial results
Advertising net revenue from the LCD display network was $50.2 million for the first quarter of 2010, representing an increase of 46% from $34.3 million for the first quarter of 2009, and a decrease of 22% from $64.1 million for the fourth quarter of 2009 due to seasonality.
Advertising net revenue from the poster frame network was $24.8 million for the first quarter of 2010, representing an increase of 5% from $23.5 million for the first quarter of 2009 and a decrease of 7% from $26.8 million for the fourth quarter of 2009 due to seasonality.
Advertising net revenue from the in-store network was $7.7 million for the first quarter of 2010, increasing by 21% from $6.3 million for the first quarter of 2009, and slightly increasing from $7.4 million from the fourth quarter of 2009.
As of March 31, 2010, the total installed base of LCD displays in our LCD display network was 132,485 nationwide, including 126,289 displays through our directly owned networks, and 6,196 displays through our regional distributors, as compared to 131,006 as of December 31, 2009. The total number of non-digital frames available for sale in our poster frame network was 235,160 as of March 31, 2010, as compared to 225,104 as of December 31, 2009. In addition, as of March 31, 2010, we had 35,599 digital frames installed in our poster frame network, as compared to 35,972 as of December 31, 2009. The total number of displays installed in our in-store network was 40,848 as of March 31, 2010, as compared to 44,517 as of December 31, 2009. The decline was due to the termination of rental contracts with two chain stores.
Internet advertising service net revenue was $28.1 million in the first quarter of 2010, increasing by 32% from $21.3 million for the first quarter of 2009, and a decrease of 16% as compared to $33.4 million for the fourth quarter of 2009 due to seasonality.
Advertising net revenue from the movie theater and traditional outdoor billboard network was $14.1 million for the first quarter of 2010, representing a decrease of 26% from $19.2 million from the first quarter of 2009 due to disposal of a subsidiary in traditional outdoor billboard network in the third quarter of 2009 and an increase of 12% from $12.6 million for the fourth quarter of 2009.
Non-GAAP gross profit from the LCD display network for the first quarter of 2010 was $36.3 million, representing an increase of 58% from $22.9 million for the first quarter of 2009, and a decrease of 28% from $50.6 million for the fourth quarter of 2009 due to seasonal revenue decline on a relatively fixed direct operating costs base.
Non-GAAP gross profit from the poster frame network for the first quarter of 2010 was $8.0 million, representing a decrease of 29% from $11.2 million for the first quarter of 2009 due to significant restructuring in 2009, and a decrease of 26% from $10.8 million for the fourth quarter of 2009 due to seasonal revenue decline on a relatively fixed direct operating costs base.
Non-GAAP gross profit from the in-store network for the first quarter of 2010 was $2.4 million, representing an increase of 17% from $2.1 million for the first quarter of 2009 as the Company managed to lower rental costs in the business, and a decrease of 51% from $5.0 million for the fourth quarter of 2009 primarily due to the Company's settling of a rental dispute in the fourth quarter of 2009.
Non-GAAP gross profit from our internet advertising services for the first quarter of 2010 was $5.7 million, representing an increase of 21% from $4.7 million for the first quarter of 2009, and a slight 5% decline from $6.0 million for the fourth quarter of 2009 due to seasonality.
Non-GAAP gross profit from the movie theater and traditional outdoor billboard network for the first quarter of 2010 was $4.7 million, representing a 22% decline from $6.0 million for the first quarter of 2009, mainly due to the restructuring in the traditional outdoor billboard network as one subsidiary was disposed in late third quarter of 2009, and a 87% increase from $2.5 million for the fourth quarter of 2009.
Non-GAAP operating expense for the first quarter of 2010 was $28.7 million, a slight increase of 2% from $28.3 million for the first quarter of 2009 and decreased by 15% from $33.9 million for the fourth quarter of 2009.
Non-GAAP net income for the first quarter of 2010 is $23.2 million. Net cash provided by operating activities for the first quarter of 2010 was $5.9 million. The Company incurred an increase of changes in assets and liabilities by $27.1 million during the quarter including payment of previously accrued income tax of $14.6 million, rental deposits of $13.7 million mainly related to prepaid rental for in-store network and liabilities related to settlement of a business arbitration case, which we have accrued and disclosed since 2008 in the Company's disposed wireless business in the amount of $5.5 million.
Net cash received from investing activities for the first quarter was $15.2 million. In the first quarter of 2010, the Company incurred capital expenditure of $1.1 million and earn-out payments of $15.2 million. In the meantime, the Company converted short-term investment into cash and cash equivalent in the amount of $29.3 million and received proceeds of $2.2 million from prior year disposal of a subsidiary during the quarter.
Net cash provided by financing activities for the first quarter was $9.0 million. In the first quarter of 2010, the Company received cash of $9.0 million as part of the proceeds related to the management buyout of a 38% stake in Allyes, the Internet division of the Company.
Business Outlook for Second Quarter 2010
The Company provides the following guidance with respect to the second quarter ending June 30, 2010: Net revenues for LCD display network, in-store network and poster frame network are expected to be in the range of $99-101.5 million, the mid-point of which would represent quarter-on-quarter growth of 19% and year-on-year growth of 12% (off an unusually strong base in the second quarter of 2009). Net revenues for the Internet advertising services and the movie theater and traditional outdoor billboard network are expected to be in the range of $43-45 million. The Company's non-GAAP net income is expected to be in the range of $35.5-37.5 million. The Company estimates the fully diluted ADS count for the quarter at 149 million.
Currently, one of the Company's subsidiaries is in the process of applying for High/New Technology Enterprise ("HNTE") status in China. This tax status, along with the applicable tax holidays, will allow the subsidiary to benefit from a 0% tax rate for year 2010. Under US GAAP, the Company is not allowed to utilize an anticipated tax rate until the approved certification is granted. Up until such date, the Company is required to accrue for income tax at the enacted statutory rate of 25%. Upon receiving the approval for the HNTE status, we will adjust the tax accrual to reflect the 0% tax rate applicable to that particular subsidiary effective from January 1, 2010 and the estimated effective tax rate for fiscal year 2010 for the Company will be reduced. Had the Company been able to utilize a 0% tax rate during the first quarter of 2010, the Company's income tax expense would have been reduced by approximately $1.6-$1.9 million.
The Company incurred cumulative earn-out payments of $15.2 million in the first quarter of 2010. Based on the existing business outlook, the Company expects earn-out payments remaining in 2010 to be no more than $23 million versus our previous guidance of cumulatively no more than $40 million for 2010.
Announced Share Repurchase Program
On February 2, 2010, Focus Media announced that its board of directors has approved a share repurchase program of up to $200 million. As of May 20, 2010, the Company has cumulatively spent $23.7 million in share repurchases.
Foreign Currency Translation
Assets and liabilities are translated at the exchange rate as of March 31, 2010, which was $1 to RMB 6.8263. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the first quarter of 2010, which was $1 to RMB 6.8360. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statement of shareholders' equity and comprehensive income (loss).
USE OF NON-GAAP FINANCIAL MEASURES
In addition to Focus Media's consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit (loss), non-GAAP net income and non-GAAP fully-diluted EPS, all excluding share-based compensation expenses, amortization of acquired intangible assets, loss from disposal of previously acquired subsidiaries and equity affiliates, impairment charges of long-lived assets and goodwill and termination charges related to ceasing expansion of digital poster frame networks and boat-based advertising platform, write-off of receivables from ex-shareholders of disposed business and charges from expensing IPO expenditures as a result of termination of IPO process of Allyes. The Company believes that these non-GAAP financial measures provide investors with another method for assessing Focus Media's operating results in a manner that is focused on the performance of its ongoing operations. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results in the attached financial information. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of Focus Media and when planning and forecasting future periods. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliation between these financial measures.
Focus Media Holding Ltd. Reconciliation of GAAP to non-GAAP (U.S. Dollar in thousands, except percentages, share and per-share data) (Unaudited) Three months ended March 31, 2010 GAAP (1) (2) (3) (4) Non-GAAP Gross Profit LCD display network 35,210 280 839 -- 36,329 Poster frame network 6,351 -- 1,639 -- 7,990 In-store network 2,443 -- -- -- 2,443 Internet advertising 5,452 -- 207 -- 5,659 Movie theater and outdoor billboard network 4,216 -- 442 -- 4,658 Total Gross Profit 53,672 280 3,127 -- 57,079 General and administrative 23,780 (11,290) -- -- -- 12,490 Selling and marketing 23,294 (1,232) (1,187) -- -- 20,875 Impairment loss 5,736 -- -- (5,736) -- -- Other operating expenses (income), net (3,387) -- -- -- (1,288) (4,675) Total operating expense 49,423 (12,522) (1,187) (5,736)(1,288) 28,690 Operating profit (loss) 4,249 12,802 4,314 5,736 1,288 28,389 Net income (loss) attributable to Focus Media (954) 12,802 4,314 5,736 1,288 23,186 Basic and diluted net income (loss) per ADS (0.01) 0.16 Shares used in calculating basic loss per ADS 145,055,601 145,055,601 Shares used in calculating diluted loss per ADS 145,055,601 148,482,403 (1) Share-based compensation. (2) Amortization of acquired intangible assets. (3) Impairment charges of goodwill as a result of earn-out payments in poster frame business. (4) Loss from disposal in investment of equity affiliate. Focus Media Holding Ltd. Reconciliation of GAAP to non-GAAP (U.S. Dollar in thousands, except percentages, share and per-share data) (Unaudited) Three months ended December 31, 2009 GAAP (1) (2) (3) (4) (5) (6) Non-GAAP Gross Profit LCD display network 49,498 285 839 -- -- -- -- 50,622 Poster frame network 9,148 -- 1,646 -- -- -- -- 10,794 In-store network 5,001 -- -- -- -- -- -- 5,001 Internet advertising 5,778 -- 207 -- -- -- -- 5,985 Movie theater and outdoor billboard network 2,046 -- 443 -- -- -- -- 2,489 Total Gross Profit 71,471 285 3,135 -- -- -- -- 74,891 General and adminis- trative 45,226 (26,780) -- -- -- -- -- 18,446 Selling and marketing 28,416 (7,999) (1,254) -- -- -- -- 19,163 Impairment loss 14,027 -- -- -- (14,027) -- -- -- Other operating expenses (income), net (1,411) -- -- -- -- (4,351) 2,067 (3,695) Total operating Expense 86,258 (34,779)(1,254) -- (14,027)(4,351) 2,067 33,914 Operating (loss) profit (14,787) 35,064 4,389 -- 14,027 4,351 (2,067) 40,977 Net income (loss) attrib- utable to Focus Media (53,019) 35,064 4,672 31,103 14,027 4,351 (2,067) 34,131 Basic and diluted net income (loss) per ADS (0.39) 0.25 Shares used in calcu- lating basic loss per ADS 135,109,925 135,109,925 Shares used in calcu- lating diluted loss per ADS 135,109,925 136,945,241 (1) Share-based compensation, of which $ 14.6 million was attributable to LCD display network, poster frame network and in-store network and $20.5 million was attributable to cancellation of share options in internet business. (2) Amortization of acquired intangible assets. (3) Loss from impairment and disposal of previously acquired subsidiaries, all attributable to internet business. (4) Impairment charges of goodwill as a result of earn-out payments in poster frame business. (5) Write-off of receivables from ex-shareholders of disposed business. (6) Settlement of disputed liabilities in previously disposed wireless business. Focus Media Holding Ltd. Reconciliation of GAAP to non-GAAP (U.S. Dollar in thousands, except percentages, share and per-share data) (Unaudited) Three months ended March 31, 2009 GAAP (1) (2) (3) (4) Non-GAAP Gross Profit LCD display network 22,700 246 -- -- -- 22,946 Poster frame network 11,192 -- -- -- -- 11,192 In-store network 2,077 -- 9 -- -- 2,086 Internet advertising 3,874 -- 821 -- -- 4,695 Movie theater and outdoor billboard network 5,047 -- 972 -- -- 6,019 Total Gross Profit 44,890 246 1,802 -- -- 46,938 General and administrative 23,722 (4,759) -- -- (2,466) 16,497 Selling and marketing 19,440 (3,118) (1,210) -- -- 15,112 Impairment loss 9,271 -- -- (9,271) -- -- Other operating expenses (income), net (3,349) -- -- -- -- (3,349) Total operating Expense 49,084 (7,877) (1,210) (9,271) (2,466) 28,260 Operating (loss) profit (4,194) 8,123 3,012 9,271 2,466 18,678 Net income (loss) attributable to Focus Media (5,692) 8,123 4,462 9,271 2,466 18,630 Basic and diluted net income (loss) per ADS (0.04) 0.14 Shares used in calculating basic loss per ADS 129,218,960 129,218,960 Shares used in calculating diluted loss per ADS 129,218,960 129,275,983 (1) Share-based compensation (2) Amortization of acquired intangible assets. (3) Impairment charges of goodwill as a result of earn-out payments in poster frame business. (4) Charges from expensing IPO expenditures as a result of termination of IPO process of Allyes. CONFERENCE CALL
The Company will host a conference call to discuss the first quarter 2010 results at 9:00 p.m. U.S. Eastern Time on May 20, 2010 (6:00 p.m. U.S. Pacific Time on May 20, 2010 and 9:00 a.m. Beijing/Hong Kong Time on May 21, 2010). The dial-in details for the live conference call are set forth below: U.S. Toll Free Number +1.800.573.4752, Hong Kong dial-in number + 852.3002.1672, International dial-in number +1.617.224.4324; Pass code: 55910993.
A replay of the call will be available from May 21, 2010 12:00 am until May 28, 2010 (US Eastern Time). The dial-in details for the replay are set forth below: U.S. Toll Free Number +1-888-286-8010, International dial-in number +1-617-801-6888; Pass code 97958556. Additionally, a live and archived web cast of this call will be available on the Focus Media web site at http://ir.focusmedia.cn/
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3 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 is China's leading multi- platform digital media company, operating the largest out-of-home advertising network in China using audiovisual digital displays, based on the number of locations and number of flat-panel television displays in our network. Through Focus Media's multi-platform digital advertising network, the company reaches urban consumers at strategic locations and point-of-interests over a number of media formats, including audiovisual television displays in buildings and stores, advertising poster frames and other new and innovative media, such as outdoor light-emitting diode or LED digital billboard and Internet advertising platforms. As of March 31, 2010, Focus Media's digital out-of-home advertising network had approximately 132,000 LCD displays in its LCD display network and approximately 271,000 advertising in-elevator poster and digital frames, installed in over 90 cities throughout China. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn/ .
Focus Media Holding Limited UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in Thousands) 2010-3-31 2009-12-31 ASSETS Current assets Cash and cash equivalents 598,561 568,159 Short-term investment -- 29,290 Accounts receivable, net 165,830 172,752 Prepaid expenses and other current assets 32,688 24,506 Deposit paid for acquisition of subsidiaries 2,957 4,860 Rental deposits 37,129 29,640 Other current assets 3,770 4,579 Total current assets 840,935 833,786 Rental deposits, non-current 7,772 1,570 Equipment, net 71,913 77,661 Acquired intangible assets, net 47,471 51,777 Goodwill 410,372 410,369 Other long term assets 14,485 18,279 Total assets 1,392,948 1,393,442 LIABILITIES AND EQUITY Current liabilities Accounts payable 58,853 53,340 Accrued expenses and other current liabilities 81,687 101,870 Income taxes payable 18,772 27,537 Amount due to related parties 175 2,231 Deferred tax liabilities 11,633 12,077 Total current liabilities 171,120 197,055 Deferred tax liabilities 5,902 5,435 Total liabilities 177,022 202,490 Equity Ordinary shares 36 36 Additional paid in capital 1,887,300 1,871,254 Subscription receivable (3,082) (3,082) Accumulated deficit (744,205) (743,251) Accumulated other comprehensive income 60,285 64,167 Total Focus Media shareholders' equity 1,200,334 1,189,124 Noncontrolling interests 15,592 1,828 Total equity 1,215,926 1,190,952 Total liabilities and equity 1,392,948 1,393,442 Focus Media Holding Limited UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. Dollar in thousands, except Earning per ADS and ADS data) Three months ended 2010-3-31 2009-12-31 2009-3-31 Revenues LCD display network 55,428 70,660 38,313 In-store network 8,488 8,173 7,015 Poster frame network 27,413 29,310 25,808 Movie theater and outdoor billboard network 14,672 12,866 19,846 Internet advertising 29,440 34,863 22,486 Total gross revenues 135,441 155,872 113,468 Less: Sales taxes 10,562 11,524 8,762 Total net revenue (note) 124,879 144,348 104,706 Cost of revenues LCD display network 14,945 14,623 11,626 In-store network 5,219 2,388 4,267 Poster frame network 18,448 17,649 12,345 Movie theater and outdoor billboard network 9,922 10,550 14,164 Internet advertising 22,673 27,667 17,414 Total cost of revenues 71,207 72,877 59,816 Gross profit 53,672 71,471 44,890 Operating expenses General and administrative 23,780 45,226 23,722 Selling and marketing 23,294 28,416 19,440 Impairment loss 5,736 14,027 9,271 Other operating expenses (income), net (3,387) (1,411) (3,349) Total operating expenses 49,423 86,258 49,084 Operating profit (loss) 4,249 (14,787) (4,194) Interest income 1,838 1,382 1,576 Income (loss) from continuing operations before income taxes 6,087 (13,405) (2,618) Provision for income taxes 6,678 5,856 2,982 Net loss from continuing operations (591) (19,261) (5,600) Net loss from discontinued operations, net of tax -- (33,434) (73) Net loss (591) (52,695) (5,673) Less: Net income attributable to noncontrolling interests 363 324 19 Net loss attributable to Focus Media (954) (53,019) (5,692) Loss per ADS from continuing operations -basic (0.01) (0.14) (0.04) -diluted (0.01) (0.14) (0.04) Loss per ADS from discontinuing operations -basic -- (0.25) (0.00) -diluted -- (0.25) (0.00) Net loss per ADS -basic (0.01) (0.39) (0.04) -diluted (0.01) (0.39) (0.04) Shares used in calculating basic loss per ADS 145,055,601 135,109,925 129,218,960 Shares used in calculating diluted loss per ADS 145,055,601 135,109,925 129,218,960 Note: Details of net revenues by segment are as follows (U.S. Dollars in thousands): Three months ended 2010-3-31 2009-12-31 2009-3-31 Gross revenues LCD display network 55,428 70,660 38,313 In-store network 8,488 8,173 7,015 Poster frame network 27,413 29,310 25,808 Movie theater and outdoor billboard network 14,672 12,866 19,846 Internet advertising 29,440 34,863 22,486 Total gross revenues 135,441 155,872 113,468 Less: Sales taxes LCD display network 5,273 6,539 3,987 In-store network 826 784 671 Poster frame network 2,614 2,513 2,271 Movie theater and outdoor billboard network 534 270 635 Internet advertising 1,315 1,418 1,198 Total sales tax 10,562 11,524 8,762 Net revenues LCD display network 50,155 64,121 34,326 In-store network 7,662 7,389 6,344 Poster frame network 24,799 26,797 23,537 Movie theater and outdoor billboard network 14,138 12,596 19,211 Internet advertising 28,125 33,445 21,288 Total net revenues 124,879 144,348 104,706 FOCUS MEDIA HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS (U.S. Dollar in thousands) Three months ended 2010-3-31 2009-12-31 2009-3-31 Operating activities: Net loss (591) (52,695) (5,673) Adjustments to reconcile net loss to net cash provided by operating activities: Bad debt expenses 1,856 5,140 7,280 Share-based compensation 12,802 35,064 8,123 Depreciation 7,643 7,933 493 Amortization of acquired intangible assets 4,314 4,672 4,462 Loss on disposal of equity interest of subsidiaries and impairment of certain other assets 1,288 39,110 -- Impairment charges for goodwill, acquired intangible assets and equipment 5,736 14,027 9,271 Others 35 (1,906) (1,329) Net changes in current assets and current liabilities, net of effects of acquisitions (27,146) 20,915 1,235 Net cash provided by operating activities 5,937 72,260 23,862 Investing activities: Purchase of equipment and other long term assets (1,076) (987) (6,026) Earn-out payment paid to acquire subsidiaries (15,213) (19,301) (6,353) Investment in/(proceeds from the sale) of held-to-maturity securities 29,290 -- (28,569) Deposits refunded to acquire subsidiaries -- 330 -- Disposal of subsidiaries 2,182 (9,328) (584) Net cash received from/(used in) investing activities 15,183 (29,286) (41,532) Financing activities: Capital injection from minority shareholders 9,044 -- -- Proceeds from issuance of ordinary shares, net of issuance costs -- 142,437 143 Net cash provided by financing activities 9,044 142,437 143 Effect of exchange rate changes 238 (359) (1,807) Net increase (decrease) in cash and cash equivalents 30,402 185,052 (19,334) Cash and cash equivalents, beginning of period / year 568,159 383,107 422,916 Cash and cash equivalents, end of period / year 598,561 568,159 403,582 Supplemental disclosure of cash flow information: Income taxes paid 14,573 2,787 4,853 Supplemental disclosure of non-cash investing activity: Acquisition of subsidiaries: Accounts payable 9,713 20,326 73,147
Focus Media Holding Limited
CONTACT: Jing Lu at +86-21-2216-4155 or ir@focusmedia.cn
Web site: http://ir.focusmedia.cn/
