2014

V Media Corp. Announces Fiscal 2012 Year End Financial Results

DALIAN, China, Sept. 28, 2012 /PRNewswire/ -- V Media Corp. (OTCBB: CMDI) (the "Company"), China's fast-growing advertising media company with current outdoor media network located in Dalian, Shenyang, Tianjin, Beijing, Shanghai and New York, today announced its financial results for the fiscal year ended June 30, 2012.

Financial Highlights for the Year Ended June 30, 2012

  • Total revenue for fiscal year 2012 was $18.5 million, decreased 10% compared with fiscal year 2011
  • Gross profit decreased 34% to $7.7 million with a corresponding gross margin of 41.8%
  • Net income attributable to the Company was $50,853, decreased 99% compared with the prior year

Operational Highlights for the Fiscal Year Ended June 30, 2012

  • Outdoor advertising billboards operated totaled 5 mega-screen LED billboards, 8 metal billboards, 1 indoor LED screen, and 5 outdoor billboards as of June 30, 2012.
  • Continued the expansion in Shenyang. Launched a 500 square meter or 5,382 square foot LED billboard located atop the 22-story Shenyang Golden Hotel.  This LED screen represents the second LED screen owned and operated by the Company in Shenyang.
  • The Company's trademark "Vastitude Media" has been recognized by the State Administration for Industry and Commerce (SAIC) as a "China Well-known Trademark". This is the first Well-known trademark that has ever been granted in outdoor media industry and entitles the Company to an additional RMB50 million credit line.

Mr. James Wang, Chairman and Chief Executive Officer of V Media, stated, "During our 2012 fiscal year we have been through an advertising market that was much affected by macroeconomic uncertainty. We have been focusing on client diversification and cross selling among different advertising platforms. Our overall revenue decreased 10% year-over-year and we haven't seen a return to normalization due to extended cut backs on branding budgets as a result of macroeconomic uncertainties. However, revenue generated from outdoor billboards platforms continued the growth trend, which increased 19% from the prior year. Outdoor billboards accounted for 43% of total revenue in our 2012 fiscal year and have presented great growth opportunities for the Company. Going forward we have several projects in pipeline that we expect will contribute to continued performance growth of this platform in the 2013 fiscal year."

Summary Financials for Year Ended June 30, 2012:  

Year to Date Financials (USD)

Twelve months ended June 30,

2012

2011

CHANGE

Revenue

$18.5 million

$20.6 million

-10.2%

Gross Profit

$7.7 million

$11.6 million

-33.5%

Gross Profit Margin

41.8%

56.4%

-25.9%

Net Income

$0.4 million

$5 million

-92.8%

EPS*

$0.00

$0.18

-99.0%

* Based on 27.6 million shares outstanding

Financial Results for the Year Ended June 30, 2012

Revenue for the year ended June 30, 2012 totaled $18.5 million, a decrease of 10% compared to $20.6 million for the same period in 2011. We saw a revenue increase of 19% in the outdoor billboard advertising platform which accounted for 43% of total revenue during the 2012 fiscal year. The billboard advertising platform has presented a significant growth opportunity with attractive profit margins which were 43% for the 2012 fiscal year. The outdoor billboard platform is established in Dalian, Shenyang, Tianjin, Beijing and Shanghai and going forward the Company will continue to establish their presence in these markets. Revenue in Dalian, which accounted for 77% of total revenue, decreased by 25% to $14.1 million for the 2012 fiscal year as compare to $18.8 million for the 2011 fiscal year.

Street fixture and display networks revenue (generated from Dalian and Shenyang market) decreased 18% year-over-year, city transit system display networks decreased 32% and city navigator decreased 24%, both of which are generated solely from the Dalian market. Geographically for the 2012 fiscal year, revenue in Dalian, Shanghai, Shenyang, Tianjin and Beijing accounted for 76.5%, 3.0%, 6.7%, 2.3% and 11.5% of total revenue. These results compare to 92.2%, 4.3%, 3%, 1% and less than 1% for the 2011 fiscal year.

As of June 30, 2012, V Media has installed 52 "City Navigator" units across the Dalian urban area, 3 mega-screen (126 square meters to 400 square meters or 1,356 square feet to 4,306 square feet) LED screens and 8 metal billboards in Dalian, 1 mega-screen (88 square meters or 947 square feet) LED screen in the business district in Shenyang, 1 indoor LED screen (22 square meters or 237 square feet) in Tianjin Railway Station and 5 outdoor billboards in Shanghai. For other platforms, the number of bus shelters and taxi stops increased to 790, the number of buses that carry mobile advertisements is 336 and specifically the number of mobile displays through Dalian metro-trains increased to 32.

2012 Fiscal Year End Revenue Breakdown by Advertising Platform (USD)

Year ended June 30,

2012

2011

CHANGE

Street Fixture and Display Network

% of Sales

Gross Profit Margin %

$5.6 million

30.2%

40.5%

$6.8 million

32.9%

61.8%

-17.9%

City Transit System Display Network

% of Sales

Gross Profit Margin %

$3 million

16.3%

36.5%

$4.4 million

21.5%

51.3%

-31.7%

Outdoor Billboards

% of Sales

Gross Profit Margin %

$8 million

43.3%

43%

$6.8 million

33%

56.1%

+17.8%

City Navigator

% of Sales

Gross Profit Margin %

$1.4 million

7.3%

62.3%

$1.8 million

8.6%

67%

-23.6%

Other Services Income

% of Sales

Gross Profit Margin %

$0.5 million

2.8%

14.2%

$0.808 million

3.9%

16.3%

-34.9%

Total Sales

$18.5 million

$20.6 million

-10.2%

Cost of sales for the year ended June 30, 2012 totaled $10.8 million or 58.2% of revenue, an increase of 19.8% compared to $9 million or 43.6% of revenue for the year ended June 30, 2011. The increase in cost of revenue was primarily attributable to increased depreciation of advertising equipment, labor and raw material cost.

Gross profit for the year ended June 30, 2012 totaled $7.7 million, a decrease of 33.5% compared to $11.6 million for the year ended June 30, 2011. The decrease in gross profit was partially attributable to the revenue decrease. Gross profit margin was 41.8% and 56.4% for the year ended June 30, 2012 and 2011, respectively.  The decrease in gross profit margin during the 2012 fiscal year as compared to the 2011 fiscal year was mainly due to the increased cost of securing new advertising platform, increased maintenance cost of advertising equipment, and the increase of labor and raw material cost during the fiscal year ended June 30, 2012. Specifically, the decrease in outdoor billboard margins was due to the increased amount of new constructions and the lead time needed to build advertising clients.

Selling, general and administrative expenses, which primarily consist of salaries of sales personnel, commissions for sales representatives, rent expenses and related administrative expenses, totaled $6.6 million and $4.1 million for the years ended June 30, 2012 and 2011, respectively, an increase of $2.5 million or 63%.  Among which, $1.1 million increased amortization expense was associated with a LED in Times Square newly rented for operation in current year; $665,000 was due to increased depreciation expense; $242,000 was due to higher maintenance and professional fees as being a public company.

Net income attributable to V Media Corp. for the year ended June 30, 2012 totaled $50,853, a decrease of 99% as compared to $4.9 million for the year ended June 30, 2011. Basic and diluted earnings per share for the year ended June 30, 2012 were $0 and $0 based on 27.6 million basic and 27.6 million diluted shares versus basic and diluted earnings per share of $0.18 and $0.17 for the year ended June 30, 2011 based on 27.6 million basic and 28.2 million diluted shares outstanding.

Liquidity and Capital Resources

As of June 30, 2012, V Media had approximately $1.5 million in cash and cash equivalents or $0.06 per share. As of June 30, 2012, total current assets and total assets were $9.5 million and $39.6 million, respectively. During the same period, total current liabilities and total liabilities were $19.6 million and $19.9 million, respectively. Shareholder's equity increased 10.9% to $39.6 million for the year ended June 30, 2012, compared to $35.7 million for the year ended June 30, 2011.

Conference Call Details:

Date: 

Friday, September 28, 2012

Time:

9:30 a.m. Eastern

U.S. Dial-In:

(877) 941-4774

International Dial-In: 

(480) 629-9760

Live Webcast:

http://public.viavid.com/index.php?id=101929

It is recommended that participants dial in approximately 10 minutes prior to the start of the 9:30 a.m. Eastern call. A telephonic replay of the conference call may be accessed approximately two hours after the call through October 12, 2012. Please dial 877-870-5176 for U.S. and 858-384-5517 for international callers and entering the access code, 4567626.

There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available by clicking on the following link, http://public.viavid.com/index.php?id=101929.

About V Media Corp.

Founded in September 2000, Dalian Vastitude Media Group Co., Ltd., now known as V Media Corp., is headquartered in Dalian, the commercial center of Northeastern China. The company owns and operates the city's largest outdoor media network encompassing over 600 bus shelters furnished with billboards and displays; 130 taxi stops with displays; and 18 large-size billboards, including 3 large-size LED displays at major traffic conjunctions. The company also furnishes more than 400 buses with advertising posters and 32 metro-trains throughout Dalian Metro Lines. V Media provides comprehensive adverting services from art design to ad publishing, from daily maintenance to technical upgrading. Launched in Dalian in 2009, V Media's proprietary LED multimedia display network, City Navigator®, is one of the country's first web-based outdoor advertising networks. For more information, please visit www.gywj.cn.

Forward-Looking Statements

This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements", including statements regarding the Company's ability to meet its obligations under its various contracts; the timeliness of payments and other economic benefits the Company expects to receive under such contracts; and the Company's ability to maintain its customer relationships and to maintain its ability to pursue its commercial objectives. In addition, the Company's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe such as risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. 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 these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors 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 at http://www.sec.gov. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Company Contact:

Rita Jiang
Executive Vice President of Finance
646-691-5047
Rita.jiang@gmail.com
www.gywj.cn

 

V MEDIA CORP. AND SUBSIDIARIES

(FORMERLY CHINA NEW MEDIA CORPORTATION)

CONSOLIDATED BALANCE SHEETS

(IN US DOLLARS)




As of June 30,


As of June 30,



2012


2011






 ASSETS










 Current assets





 Cash and cash equivalents


$

1,526,604


$

1,808,880

 Accounts receivable, net



4,960,911



5,395,698

 Advance to suppliers



413,883



619,582

 Prepaid expenses



-



189,759

 Loans receivable



2,099,493



1,761,139

 Other current assets



113,129



243,159

 Deferred tax assets



396,961



129,443

 Total current assets



9,510,981



10,147,660








 Property, equipment and construction in progress, net



23,204,841



18,867,352








 Other assets







 Billboards use right, net



4,798,745



4,766,060

 Security deposits



2,043,750



1,955,343

 Equity investment



82,572



-

 Total other assets



6,925,067



6,721,403








 Total Assets


$

39,640,889


$

35,736,415








 LIABILITIES AND EQUITY














 Current liabilities







 Short term loans


$

11,035,314


$

11,603,746

 Current portion of long term loans



590,370



464,150

 Accounts payable



2,274,736



47,067

 Other payables



1,902,658



1,121,947

 Accrued expenses



21,533



491,997

 Deferred revenues



2,649,472



1,618,548

 Taxes payable



507,145



1,055,620

 Due to related parties



594,774



158,297

 Total current liabilities



19,576,002



16,561,372








 Long term loan-non current portion



363,060



-








 Total  Liabilities



19,939,062



16,561,372








 Commitments and contingencies














 Equity







 Series A Preferred Stock, $0.0001 par value, 20,000,000 shares authorized,







  1,000,000 shares issued and outstanding



100



100

 Common stock, $0.0001 Par value; 80,000,000 shares authorized;







  27,590,701 shares issued and outstanding



2,759



2,759

 Additional paid-in-capital



6,820,820



6,820,820

 Accumulated other comprehensive income



786,806



636,300

 Retained earnings



10,774,956



10,724,103

 Total V Media Corp. equity



18,385,441



18,184,082

 Noncontrolling interest



1,316,386



990,961

 Total equity



19,701,827



19,175,043








 Total Liabilities and Equity


$

39,640,889


$

35,736,415

 

V MEDIA CORP. AND SUBSIDIARIES

(FORMERLY CHINA NEW MEDIA CORPORTATION)

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN US DOLLARS)




For the years ended June 30,



2012


2011











 Revenues


$

18,470,685


$

20,578,364








 Cost of revenue



(10,750,398)



(8,976,950)








 Gross profit



7,720,287



11,601,414








 Selling, general and administrative expenses



(6,586,810)



(4,048,022)








 Income  from operations



1,133,477



7,553,392








 Other income (expenses):







 Interest income



5,279



25,824

 Interest expense



(1,236,432)



(815,103)

 Loss from equity investment



(11,868)



-

 Other income



718,984



29,158

 Other expenses



(23,544)



(16,431)








 Total Other income (expenses)



(547,581)



(776,552)








 Income before income taxes



585,896



6,776,840








 Income tax provision (benefit)







 Current



492,080



1,904,238

 Deferred



(265,273)



(93,998)

 Total income tax provision



226,807



1,810,240








 Net income



359,089



4,966,600








 Less: net income attribute to the noncontrolling interest



308,236



94,715








 Net income  attributable to V Media Corp.


$

50,853


$

4,871,885















 Net income



359,089



4,966,600








 Other comprehensive income







 Foreign currency translation adjustments



167,695



541,729








 Comprehensive income



526,784



5,508,329








 Less: comprehensive income attributed to the noncontrolling interest



325,425



140,357








 Comprehensive income attributable to V Media Corp.


$

201,359


$

5,367,972








 Earnings per share







 Basic


$

0.00


$

0.18

 Diluted


$

0.00


$

0.17

 Weighted average number of common shares







 Basic



27,550,701



27,550,701

 Diluted



27,550,701



28,196,904

 

V MEDIA CORP. AND SUBSIDIARIES

(FORMERLY CHINA NEW MEDIA CORPORTATION)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN US DOLLARS)




For the years ended June 30,



2012


2011






 CASH FLOWS FROM OPERATING ACTIVITIES:





 Net income


$

359,089


$

4,966,600

 Adjustments to reconcile net income to net cash







 provided by operating activities:







 Depreciation and amortization



4,861,544



2,497,692

 Amortization of stock based compensation expense



24,804



35,788

 Loss from equity investment



11,868



-

 Provision for doubful accounts



197,736



288,575

 Deferred tax benefit



(265,273)



(90,660)

 Changes in operating assets and liabilities







 Accounts receivable



330,633



(2,009,171)

 Other current assets



134,247



3,189,819

 Prepaid expenese



179,893




 Security deposit



(54,495)



10,966

 Advance to suppliers



216,445



470,822

 Accounts payable



2,651,796



445,350

 Other payables



174,253



(2,550,342)

 Accrued expenses



(490,701)



(20,737)

 Deferred revenues



1,002,852



(88,285)

 Taxes payable



(566,783)



(398,212)








             Net cash provided by operating activities



8,767,908



6,748,205








 CASH FLOWS FROM INVESTING ACTIVITIES:







 Loan to third party



(2,414,293)



-

 Proceeds from (repayment of) loans to third party



2,106,484



(1,717,895)

 Equity investment



(94,440)



-

 Acquisition of billboards use rights



(2,536,601)



(1,409,700)

 Purchase of property and equipment



(6,285,222)



(6,461,668)








             Net cash used in investing activities



(9,224,072)



(9,589,263)








 CASH FLOWS FROM FINANCING ACTIVITIES:







 Proceeds from short-term bank loans



11,035,314



12,224,325

 Repayment of short-term bank loans



(11,805,000)



(8,270,284)

 Proceeds (repayment) from related party loans



431,130



(300,155)

 Proceeds from long term loans



1,217,326



-

 Repayment of long-term bank loans



(736,096)



(754,588)








             Net cash provided by financing activities



142,674



2,899,298








 EFFECT OF EXCHANGE RATE CHANGE ON







 CASH AND CASH EQUIVALENTS



31,214



78,624








 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS



(282,276)



136,864








 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR



1,808,880



1,672,017








 CASH AND CASH EQUIVALENTS, END OF YEAR


$

1,526,604


$

1,808,881








 SUPPLEMENTAL CASH FLOW DISCLOSURES







    Income taxes paid


$

1,298,242


$

2,462,752

    Interest paid


$

945,633


$

772,372

SOURCE V Media Corp.



RELATED LINKS
http://www.gywj.cn
http://viavid.net/dce.aspx?sid=00008D85
http://public.viavid.com/index.php?id=101929
http://public.viavid.com/index.php?id=101929

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