V Media Corporation Announces Second Quarter Fiscal Year 2014 Financial Results

DALIAN, China, Feb. 18, 2014 /PRNewswire/ -- V Media Corporation (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 second quarter of fiscal year 2014 ended December 31, 2013.

Financial Highlights for the Second Quarter Ended December 31, 2013

  • Total revenue for the six months of fiscal year 2014 was $11.1 million, decreased 3.2% compared with the six months of fiscal year 2013
  • Gross profit increased 26.1% to $2.5 million with a corresponding gross margin of 22.5%
  • Net loss attributable to the Company was $0.7 million, decreased 62.3% compared with the same period prior year

Mr. James Wang, Chairman and Chief Executive Officer of V Media, stated, "During our six months of fiscal year 2014, we still see a challenging market of cut backs on branding budgets as a result of macroeconomic uncertainties, correspondingly, our overall revenue decreased 3.2% year-over-year.  We continue to focus on client diversification and cross selling among different advertising platforms, and going forward we will continue to increase our sales effort to improve the utilization rate of our platforms and cost cutting to improve our profit margin. Our newly added platforms have gained sales momentum during this period; we expect to see an improved top-line and bottom-line growth in the near future."

Summary Financials for 2014 Fiscal Year Second Quarter Ended December 31, 2013:  

Fiscal Second Quarter Financials (USD)

Three months ended December 31,

2013

2012

CHANGE

Revenue

$5.5 million

$6.0 million

-8.9%

Gross Profit

$1.1 million

$1.1 million

-8.2%

Gross Profit Margin

19.2%

19.1%

0.7%

Net Income

$-0.6 million

$-0.4 million

27.2%

EPS*

$-0.02

$-0.02

27.2%


* Based on 27.6 million shares outstanding

Financial Results for the 2014 Fiscal Year Second Quarter Ended December 31, 2013

Revenue for the 2014 fiscal year second quarter ended December 31, 2013 totaled $5.5 million, a decrease of 8.9% compared to $6.0 million for the same period in 2012. Revenue from outdoor billboard advertising platform, which accounted for 43.7% of total revenue during the 2014 fiscal year second quarter, increased 25.2% compared with same period the prior year. The increased revenue from outdoor billboard is mainly due to the revenue increase in Beijing and US market. The outdoor billboard platform is established in Dalian, Shenyang, Tianjin, Beijing, Shanghai and New York and going forward the Company will continue to establish their presence in these markets. Revenue in Dalian, which accounted for 69.9% of total revenue, decreased by 24.5% to $3.8 million for the 2014 fiscal year second quarter as compared to $5.1 million for the 2013 fiscal year second quarter.

Street fixture and display networks revenue (generated from Dalian and Shenyang market) increased 16% year-over-year, city transit system display networks decreased 26.1% and city navigator increased 47%, both of which are generated solely from Dalian market. Geographically for the 2014 fiscal year second quarter, revenue in Dalian, Shanghai, Shenyang, Tianjin, Beijing and the US accounted for 69.6%, 0%, 4.7%, 4.3%, 8.5% and 12.6% of total revenue. These results compare to 84.4%, 4.2%, 7.6%, 3.7%, 0.1% and 0% for the 2013 fiscal year second quarter.

As of December 31, 2013, 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, 5 outdoor billboards in Shanghai and 1 LED screen in Haikou. 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.

2014 Fiscal Year Second Quarter Revenue Breakdown by Advertising Platform (USD)

Period ended December 31,

2013

2012

CHANGE

Street Fixture and Display Network

% of Sales

Gross Profit Margin %

$1.8 million

32.8%

37.5%

$1.6 million

25.8%

25%

16.0%

City Transit System Display Network

% of Sales

Gross Profit Margin %

$0.8 million

15.2%

-10.3%

$1.1 million

18.8%

41.4%

-26.1%

Outdoor Billboards

% of Sales

Gross Profit Margin %

$2.4 million

43.7%

12.9%

$1.9 million

31.8%

-5%

25.2%

City Navigator

% of Sales

Gross Profit Margin %

$0.1 million

2.7%

6.5%

$0.1 million

1.7%

34.6%

47.0%

Other Services Income

% of Sales

Gross Profit Margin %

$0.3 million

5.5%

48.5%

$1.3 million

21.9%

26.8%

-77.0%

Total Sales

$5.5 million

$6.0 million

-8.9%

Cost of sales for the three months ended December 31, 2013 totaled $4.4 million or 80.8% of revenue, an decrease of 0.2% compared to $4.9 million or 80.9% of revenue for the three months ended December 31, 2012.

Gross profit for the three months ended December 31, 2013 totaled $1.1 million, a decrease of 8.2% compared to $1.1 million for the three months ended December 31, 2012. The decrease in gross profit was primarily attributable to the revenue decrease. Gross profit margin was 19.2% and 19.1% for the three months ended December 31, 2013 and 2012, respectively. As a result, our gross profit margin was lower than the level we normally would expect. We intend to increase our sales effort to improve the utilization rate of our platforms in the coming quarters to improve our gross profit margin, and we expect to have a margin recovery as the new market gains sales momentum.

Selling, general and administrative expenses, which primarily consist of salaries of sales personnel, commissions for sales representatives, rent expenses and related administrative expenses, totaled $1.4 million and $1.6 million for the three months ended December 31, 2013 and 2012, respectively, an decrease of $0.2 million or 12.5%.

Net loss attributable to V Media Corp. for the second quarter ended December 31, 2013 totaled $0.6 million, an increase of 27.2% as compared to net income $0.4 million for the second quarter ended December 31, 2012. Basic and diluted earnings per share for the second quarter ended December 31, 2013 were -$0.02 based on 27.6 million basic and diluted shares versus basic and diluted earnings per share of $-0.02 for the second quarter ended December 31, 2012 based on 27.6 million basic and diluted shares outstanding.

Summary Financials for Six Months of Fiscal 2014 Ended December 31, 2013:  

Fiscal 2014 Six-Month Results (USD) (unaudited)

Six months ended December 31,

2013

2012

CHANGE

Revenue

$11.1 million

$11.5 million

-3.2%

Gross Profit

$2.5 million

$2.0 million

26.1%

Gross Profit Margin

22.5%

17.3%

30.2%

Net Income*

$-0.7 million

$-1.9 million

-62.3%

EPS**

$-0.03

$-0.07

-62.3%


* Attributable to V Media Corp.

** Based on 27.6 million shares outstanding

Financial Results for the Six Months FY 2014 Ended December 31, 2013

Revenue for the six months FY 2014 ended December 31, 2013 totaled $11.1 million, a decrease of 3.2% compared to $11.5 million for the same period in fiscal 2012. Revenue from outdoor billboard advertising platform which accounted for 44.9% of total revenue during the six months fiscal year 2014, increased 28.4% compared with same period the prior year. Outdoor billboards accounted for 44.9% of total revenue in the six months fiscal year 2014 and have presented great growth opportunities for the Company. The outdoor billboard platform is established in Dalian, Shenyang, Tianjin, Beijing, Shanghai and New York and going forward the Company will continue to establish their presence in these markets. Revenue in Dalian, which accounted for 73.9% of total revenue, decreased by 12.4% to $8.2 million for the six months fiscal year 2014 as compare to $9.4 million for the six months fiscal year 2013.

Street fixture and display networks revenue (generated from Dalian and Shenyang market) increased 2.8% year-over-year, city transit system display networks decreased 19.8% and city navigator decreased 2.5%, both of which are generated solely from Dalian market. Geographically for the six months fiscal year 2014, revenue in Dalian, Shanghai, Shenyang, Tianjin, Beijing and the US accounted for 73.9%, 0.4%, 3.7%, 2.5%, 11.2% and 8.2% of total revenue. These results compare to 81.7%, 4.0%, 5.1%, 3.0%, 6.2% and 0% for the six months fiscal year 2013.

Fiscal 2014 Six Months Revenue Breakdown by Advertising Platform (USD)

Period ended December 31,

2013

2012

CHANGE

Street Fixture and Display Network

% of Sales

Gross Profit Margin %

$3.8million

34.4%

39.5%

$3.7 million

32.5%

31.1%

2.8%

City Transit System Display Network

% of Sales

Gross Profit Margin %

$1.8 million

15.9%

14.2%

$2.2 million

19.2%

32.4%

-19.8%

Outdoor Billboards

% of Sales

Gross Profit Margin %

$5.0 million

44.9%

11.0%

$3.9 million

33.9%

-9.7%

28.4%

City Navigator

% of Sales

Gross Profit Margin %

$0.2 million

1.8%

19%

$0.2 million

1.8%

14.4%

-2.5%

Other Services Income

% of Sales

Gross Profit Margin %

$0.3 million

2.9%

45.9%

$1.5 million

12.7%

31.3%

-77.8%

Total Sales

$11.1 million

$11.5 million

-3.2%

Cost of sales for the six months ended December 31, 2013 totaled $8.6 million or 77.5% of revenue, a decrease of 6.3% compared to $9.5 million or 82.7% of revenue for the six months ended December 31, 2012. The decrease in cost of sales was primarily attributable to increased labor and raw material cost.

Gross profit for the six months ended December 31, 2013 totaled $2.5 million, an increase of 26.1% compared to $2.0 million for the same period the prior year. Gross profit margin was 22.5% and 17.3% for the six months ended December 31, 2013 and 2012, respectively. The increase in gross profit margin was mainly due to the decreased maintenance cost of advertising equipment, and the decrease of labor and raw material cost.

Selling, general and administrative expenses totaled $2.7 million for the six months of fiscal 2014 as compared to $3.5 million for the same period in fiscal 2013. Along with decrease in our payroll and administrative costs, the decrease in our operating expenses was also due to decreased selling and promotional expenses.

Net loss attributable to V Media Corp. for the six months ended December 31, 2013 totaled $0.7 million, a decrease of 62.3% as compared to net loss $1.9 million for the six months ended December 31, 2012. Basic and diluted earnings per share for the six months ended December 31, 2013 were -$0.03 based on 27.6 million basic and diluted shares versus basic and diluted earnings per share of $-0.07 for the six months ended December 31, 2012 based on 27.6 million basic and diluted shares outstanding.

Liquidity and Capital Resources

As of December 31, 2013, V Media had approximately $1.4 million in cash and cash equivalents or $0.05 per share. As of December 31, 2013, total current assets and total assets were $14.5 million and $43.4 million, respectively. During the same period, total current liabilities and total liabilities were $29.2 million and $29.2 million, respectively. Shareholder's equity decreased 3.5% to $14.3 million for the second quarter ended December 31, 2013, compared to $14.8 million for the second quarter ended December 31, 2012.

About V Media Corporation

Founded in September 2000, Dalian Vastitude Media Group Co., Ltd., now known as V Media Corporation, 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 19 large-size billboards, including 4 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

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(IN US DOLLARS)




As of December 31,


As of June 30,



2013


2013






 ASSETS










 Current assets





 Cash and cash equivalents


$

1,418,426


$

2,148,321

 Restricted cash



3,103,035



3,322,299

 Accounts receivable, net



4,866,938



4,007,205

 Advance to suppliers, net



954,845



403,444

 Loans receivable, net



3,151,010



2,425,882

 Other current assets



959,856



397,110

 Total current assets



14,454,110



12,704,261








 Property, equipment and construction in progress, net



22,727,255



23,649,850








 Other assets







 Billboards use rights, net



3,908,322



3,281,728

 Security deposits



2,345,402



2,297,952

 Total other assets



6,253,724



5,579,680








 Total Assets


$

43,435,089


$

41,933,791








 LIABILITIES AND EQUITY














 Current liabilities







 Short term loans


$

13,809,123


$

12,579,026

 Current portion of long term loans



55,478



389,876

 Accounts payable



3,187,969



3,194,604

 Bank acceptance notes payable



5,285,789



5,214,104

 Other payables



3,230,046



2,372,044

 Deferred revenues



2,701,268



2,392,681

 Taxes payable



634,911



649,418

 Deferred tax liability



106,689



-

 Due to related parties



154,490



362,103

 Total current liabilities



29,165,763



27,153,856








 Total  Liabilities



29,165,763



27,153,856








 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



1,253,806



1,122,624

 Retained earnings



4,017,200



4,714,077

 Total V Media Corp. equity



12,094,685



12,660,380

 Noncontrolling interest



2,174,641



2,119,555

 Total equity



14,269,326



14,779,935








 Total Liabilities and Equity


$

43,435,089


$

41,933,791

 

V MEDIA CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(IN US DOLLARS)




For the six months ended
December 31,


For the three months ended
December 31,



2013


2012


2013


2012



















 Revenues


$

11,139,156


$

11,503,181



5,487,565


$

6,022,218














 Cost of revenue



(8,637,195)



(9,518,511)



(4,432,472)



(4,872,815)














 Gross profit



2,501,961



1,984,670



1,055,093



1,149,403














 Selling, general and administrative expenses



(2,713,591)



(3,478,835)



(1,438,741)



(1,644,032)














 Loss  from operations



(211,630)



(1,494,165)



(383,648)



(494,629)














 Other income (expenses):













 Interest income



30,156



2,163



8,467



1,445

 Interest expense



(551,775)



(540,422)



(297,627)



(259,069)

 Subsidy income



194,743



443,597



43,692



402,373

 Other expenses



(26,924)



(31,599)



(247)



(13,591)














 Total other Income (expenses)



(353,800)



(126,261)



(245,715)



131,158














 Loss before income taxes



(565,430)



(1,620,426)



(629,363)



(363,471)














 Income tax provision (benefit)













 Current



-



359,924



(88,669)



179,866

 Deferred



105,734



(280,322)



105,734



(19,137)

 Total income tax provision



105,734



79,602



17,065



160,729














             Net loss



(671,164)



(1,700,028)



(646,428)



(524,200)














 Less: net income (loss) attributable to noncontrolling interest



25,713



150,313



(79,439)



(78,548)














 Net loss  attributable to V Media Corp.


$

(696,877)


$

(1,850,341)



(566,989)


$

(445,652)



























 Net loss



(671,164)



(1,700,028)



(646,428)



(524,200)














 Other comprehensive income













 Foreign currency translation adjustments



160,555



286,853



126,121



143,158














 Comprehensive loss



(510,609)



(1,413,175)



(520,307)



(381,042)














 Less: comprehensive income (loss) attributable to noncontrolling interest



55,086



178,270



(55,752)



(67,651)














 Comprehensive loss attributable to V Media Corp.


$

(565,695)


$

(1,591,445)



(464,555)


$

(313,391)














 Loss per share













 Basic and diluted


$

(0.03)


$

(0.07)



(0.02)


$

(0.02)

Weighted average 
number of common shares










 Basic and diluted



27,590,701



27,590,701



27,590,701



27,590,701

 

V MEDIA CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN US DOLLARS)




For the six months ended December 31,



2013


2012






 CASH FLOWS FROM OPERATING ACTIVITIES:





 Net loss


$

(671,164)


$

(1,700,028)

 Adjustments to reconcile net loss to net cash







 provided by operating activities:







 Depreciation



1,495,594



1,301,052

 Amortization



3,284,052



2,853,468

 Loss from equity investment



-



17,430

 Provision for doubtful accounts-Accounts receivable



417,001



391,160

 Deferred tax provision (benefit)



105,734



(260,531)

 Changes in operating assets and liabilities







 Accounts receivable



(1,218,475)



(1,535,071)

 Advance to suppliers



(540,966)



(151,815)

 Other current assets



(552,295)



(782,401)

 Security deposit



(15,715)



(25,672)

 Accounts payable



81,955



(114,916)

 Other payables



649,151



1,402,607

 Deferred revenues



274,124



307,525

 Taxes payable



(23,226)



256,164








             Net cash provided by operating activities



3,285,770



1,958,972








 CASH FLOWS FROM INVESTING ACTIVITIES:







 Loan to third party, net



(685,582)



(470,957)

 Acquisition of billboard use rights



(3,862,365)



(1,482,648)

 Purchase of property and equipment



(259,031)



(1,153,219)








             Net cash used in investing activities



(4,806,978)



(3,106,824)








 CASH FLOWS FROM FINANCING ACTIVITIES:







 Restricted cash, net



262,567



(2,973,107)

 Net proceeds from capital contributions



-



46,025

 Proceeds from short-term bank loans



1,964,420



618,958

 Net proceeds from bank acceptance notes payable



-



3,853,411

 Repayment of related party loans



(211,796)



(366,842)

 Repayment of third party loans



(916,729)



(279,325)

 Repayment of long-term loans



(336,715)



(292,703)








             Net cash provided by financing activities



761,747



606,417








 EFFECT OF EXCHANGE RATE CHANGE ON







 CASH AND CASH EQUIVALENTS



29,566



878








 NET DECREASE IN CASH AND CASH EQUIVALENTS



(729,895)



(540,557)








 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD



2,148,321



1,526,604








 CASH AND CASH EQUIVALENTS, END OF PERIOD


$

1,418,426


$

986,047








 SUPPLEMENTAL CASH FLOW DISCLOSURES







    Income taxes paid


$

53,941


$

57,838

    Interest paid


$

513,727


$

518,715

SOURCE V Media Corp.



RELATED LINKS
http://www.gywj.cn

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.