2014

VisionChina Media Inc. Announces Fourth Quarter and Full-Year 2012 Results

BEIJING, April 8, 2013 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced its unaudited financial results for the fourth quarter and full-year ended December 31, 2012.

Key Quarterly Financial and Operating Data for the Fourth Quarter of 2012

Total revenues in the fourth quarter of 2012 were $26.1 million.

Gross loss in the fourth quarter of 2012 was $40,898.

Operating loss in the fourth quarter of 2012 was $16.4 million.

Net loss attributable to VisionChina Media shareholders in the fourth quarter of 2012 was $17.5 million.

In the fourth quarter of 2012, the Company's non-GAAP financial measure, net loss attributable to VisionChina Media shareholders excluding share-based compensation expenses and provision for contingent loss in connection with litigation, and if any, amortization of intangible assets, impairment loss and income tax credit in connection with the impairment loss (non-GAAP), was $15.3 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $12.7 million in the third quarter of 2012.

Basic and diluted net loss per American Depository Share ("ADS") attributable to VisionChina Media shareholders in the fourth quarter of 2012 was $3.45 and $3.45, respectively (one ADS[1] represents twenty ordinary shares), compared to basic and diluted net loss per ADS attributable to VisionChina Media shareholders of $2.82 and $2.82, respectively, in the third quarter of 2012.

The Company had cash and cash equivalents of $29.0 million as of December 31, 2012. Net cash provided by operating activities was $5.2 million in the fourth quarter of 2012, compared to net cash used in operating activities of $26.2 million in the third quarter of 2012.

Total broadcasting hours in the Company's network in the fourth quarter of 2012 were 39,930 hours, compared to the total broadcasting hours of 40,963 hours in the third quarter of 2012.

As of December 31, 2012, the Company's network covered 19 cities, secured either by exclusive agency agreements or joint venture contracts, and included 108,567 digital displays on mass transit systems.

Average advertising revenue per broadcasting hour on the Company's network in the fourth quarter of 2012 was $581.

The Company sold an average of 5.91 advertising minutes per broadcasting hour on its network in the fourth quarter of 2012.

[1]

ADS amounts adjusted for a change in the ratio of the Company's American Depositary Shares to ordinary shares from 1:1 to 1:20, effective as of December 12, 2012.

Full-Year 2012 Highlights

Total revenues were $115.7 million in the full-year 2012, of which advertising service revenue was $114.7 million.

Gross loss in the full-year 2012 was $6.1 million.

Operating loss in the full-year 2012 was $252.3 million, including a $178.8 million non-cash impairment charge, as the result of a write-down of goodwill and intangible assets associated with the Company's acquisitions of the six advertising agency businesses in 2008 and the Company's acquisition of Digital Media Group Company Limited ("Digital Media Group"), which was completed in 2010.

Net loss attributable to VisionChina Media shareholders in the full-year 2012 was $246.4 million.

The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2012 was $66.6 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $2.2 million in the full-year 2011.

Basic and diluted net loss per ADS attributable to VisionChina Media shareholders in the full-year 2012 were $48.62 and $48.62, respectively, compared to basic and diluted net loss per ADS attributable to VisionChina Media shareholders in the full-year 2011 of $2.50 and $2.50, respectively.

Total broadcasting hours in the Company's network were 162,917 hours in the full-year 2012, compared to 175,498 hours in the full-year 2011.

The Company sold an average of 6.53 advertising minutes per broadcasting hour in the full-year 2012, compared to an average of 8.78 advertising minutes per broadcasting hour in the full-year 2011.

Average advertising service revenue per broadcasting hour in the full-year 2012 was $667, compared to $1,002 in the full-year 2011.

Mr. Limin Li, VisionChina Media's chairman and chief executive officer, commented, "The fourth quarter of 2012 was marked by lingering uncertainty regarding China's overall economy. We have been able to effectively lower our costs in order to improve our operational efficiency and competitive position. With our recently announced five-year cooperation agreement with the Chinese Football Association Super League and the addition of new management personnel, we will continue to increase our strengths in content-related advertising products, event marketing and technological innovation, which improve the advertising effectiveness of our platform and yield greater return to our advertisers. These transitional strategies will also allow us to efficiently utilize our advertising inventories. Although we may encounter short-term challenges during this transitional period, we are confident that our strategy will ultimately strengthen our core competencies and deliver value to our shareholders. We expect to see positive and healthy rewards later this year despite a first quarter that typically shows seasonal weakness."

Stanley Wang, VisionChina Media's chief financial officer, added, "In the fourth quarter, we managed to sequentially decrease our media cost, and we will continue with our cost-control efforts in the 2013 year in order to improve our operating margin."

Fourth Quarter 2012 Results

VisionChina Media's total revenues were $26.1 million in the fourth quarter of 2012, representing a decrease of 51.0% from $53.4 million in the fourth quarter of 2011 and a decrease of 21.2% from $33.2 million in the third quarter of 2012. Advertising service revenue, which accounted for 97.4% of total revenues in the fourth quarter of 2012, was $25.5 million, representing a decrease of 50.7% compared to the fourth quarter of 2011 and a decrease of 22.8% compared to the third quarter of 2012. Several factors led to the Company's decrease in advertising service revenue, including declining revenue contribution from the internet-based businesses sector, and pull-back in advertising spending after the Summer Olympics in the third quarter of 2012.

Total broadcasting hours in the fourth quarter of 2012 were 39,930 hours, compared to 41,463 hours in the fourth quarter of 2011 and 40,963 hours in the third quarter of 2012.

Average advertising revenue per broadcasting hour was $581 in the fourth quarter of 2012, compared to $1,217 in the fourth quarter of 2011 and $748 in the third quarter of 2012.

In the fourth quarter of 2012, the Company sold a total of 235,794 advertising minutes in its network, compared to 370,998 advertising minutes in the fourth quarter of 2011 and 299,510 advertising minutes in the third quarter of 2012.

The Company sold an average of 5.91 advertising minutes per broadcasting hour in the fourth quarter of 2012, compared to 8.95 advertising minutes per broadcasting hour in the fourth quarter of 2011 and 7.31 advertising minutes per broadcasting hour in the third quarter of 2012.

During the fourth quarter of this year, 533 advertisers purchased advertising time on the Company's advertising network, either directly or through advertising agents, compared to 676 advertisers in the fourth quarter of 2011 and 577 advertisers in the third quarter of 2012.

Media cost, the most significant component of advertising service cost, was $20.0 million in the fourth quarter of 2012, a decrease of 18.8% from 24.6 million of the fourth quarter of 2011 and a decrease of 13.5% from 23.1 million of the third quarter of 2012.

Gross loss in the fourth quarter of 2012 was $40,898, compared to gross profit of $21.4 million in the fourth quarter of 2011 and gross profit of $3.4 million in the third quarter of 2012. 

Advertising service gross margin was negative 1.8% in the fourth quarter of 2012, compared to gross margin of 40.9% in the fourth quarter of 2011 and gross margin of 9.8% in the third quarter of 2012.

Selling and marketing expenses were $9.0 million in the fourth quarter of 2012, representing a decrease of 38.2% from $14.5 million in the fourth quarter of 2011 and a decrease of 9.2% from $9.9 million in the third quarter of 2012. Selling and marketing expenses accounted for 35.2% of the Company's advertising service revenue in the fourth quarter of 2012, compared to 28.1% in the fourth quarter of 2011 and 30.0% in the third quarter of 2012.

General and administrative expenses were $5.5 million in the fourth quarter of 2012, representing an increase of 34.0% from $4.1 million in the fourth quarter of 2011 and an increase of 11.5% from $4.9 million in the third quarter of 2012. The increase in general and administrative expenses is primarily attributable to an increase in legal fees in connection with pending litigation involving the selling shareholders and former management of Digital Media Group Company Limited ("Digital Media Group").

The Company recorded a contingent loss of $2.0 million in the fourth quarter of 2012 in connection with the pending litigation involving the selling shareholders and former management of Digital Media Group, compared to $0.7 million in the fourth quarter of 2011 and $1.4 million in the third quarter of 2012.

Operating loss was $16.4 million in the fourth quarter of 2012, compared to operating profit of $2.4 million in the fourth quarter of 2011 and operating loss of $12.6 million in the third quarter of 2012.

The Company recorded a net interest expense of $0.5 million in the fourth quarter of 2012, compared to net interest expense of $1.0 million in the fourth quarter of 2011 and net interest expense of $0.8 million in the third quarter of 2012.

The Company recorded income tax expenses of $1.1 million in the fourth quarter of 2012, compared to income tax benefits of $0.3 million in the fourth quarter of 2011 and income tax expenses of $0.9 million in the third quarter of 2012.

Net loss attributable to VisionChina Media shareholders (GAAP) was $17.5 million in the fourth quarter of 2012, compared to net income attributable to VisionChina Media shareholders of $1.7 million in the fourth quarter of 2011 and net loss attributable to VisionChina Media shareholders of $14.3 million in the third quarter of 2012.

Basic and diluted net loss per ADS was $3.45 and $3.45, respectively, in the fourth quarter of 2012.

The Company's non-GAAP financial measure, net loss attributable to VisionChina Media shareholders, excluding share-based compensation expenses and provision for contingent loss in connection with litigation, and if any, amortization of intangible assets, impairment loss and income tax credit in connection with the impairment loss (non-GAAP) was $15.3 million in the fourth quarter of 2012, compared to non-GAAP net income attributable to VisionChina Media shareholders of $4.1 million in the fourth quarter of 2011 and non-GAAP net loss attributable to VisionChina Media shareholders of $12.7 million in the third quarter of 2012.

As of December 31, 2012, the Company had 108,567 digital television displays in its network, compared to 137,423 as of December 31, 2011 and 107,821 as of September 30, 2012.

As of December 31, 2012, the Company had 715 employees, compared to 829 employees as of December 31, 2011 and 763 employees as of September 30, 2012.

The Company had cash and cash equivalents of $29.0 million as of December 31, 2012, compared to $63.1 million as of September 30, 2012. The Company repaid $37.0 million in bank borrowing in the fourth quarter of 2012. Net cash provided by operating activities was $5.2 million in the fourth quarter of 2012, compared to net cash used in operating activities of $26.2 million in the third quarter of 2012.

Depreciation and amortization was $1.2 million and capital expenditures were $0.3 million in the fourth quarter of 2012.

Full-Year 2012 Results

Total revenues in the full-year 2012 were $115.7 million, a decrease of 36.2% from $181.2 million in the full-year 2011. Advertising service revenue, which accounted for 99.2% of total revenues in the full-year 2012, was $114.7 million, representing a decrease of 36.0% from $179.4 million in the full-year 2011.

Media cost, the most significant component of advertising service cost, was $97.1 million in the full-year 2012, representing 79.8% of total advertising service cost, compared to $103.0 million, or 81.1% of total advertising service cost in the full-year 2011.

Gross loss in the full-year 2012 was $6.1 million, compared to gross profit of $52.6 million in the full-year 2011. Advertising service gross margin was negative 5.8% in the full-year 2012, compared to 29.2% in the full-year 2011.

Selling and marketing expenses in the full-year 2012 were $43.0 million, compared to $44.9 million in the full-year 2011.

General and administrative expenses in the full-year 2012 were $18.4 million, compared to $13.2 million in the full-year 2011. The increase was primarily attributable to the increase in legal fees in connection with pending litigation with the selling shareholders and former management of Digital Media Group.

Operating loss in the full-year 2012 was $252.3 million, compared to an operating loss of $10.4 million in the full-year 2011. Operating loss in the full year of 2012, primarily due to a non-cash impairment charge of $178.8 million, as the result of a write-down of goodwill and intangible assets associated with the Company's acquisitions of the six advertising agency businesses in 2008 and the Company's acquisition of Digital Media Group Company Limited ("Digital Media Group"), which was completed in 2010.

The Company recorded net interest expense of $1.9 million in the full-year 2012, compared to net interest expense of $3.0 million in the full-year 2011.

The Company recorded an income tax benefit of $7.5 million in the full-year 2012, compared to an income tax benefit of $0.8 million in the full-year 2011. The income tax benefit recorded in the full-year 2012 included tax credits of $9.1 million in connection with the aforementioned impairment loss on intangible assets.

Net loss attributable to VisionChina Media shareholders in the full-year 2012 was $246.4 million, compared to net loss attributable to VisionChina Media shareholders of $12.5 million in the full-year 2011. Basic and diluted net loss per ADS attributable to VisionChina Media shareholders, in the full-year 2012, was $48.62 and $48.62 respectively.

The Company's non-GAAP net loss attributable to VisionChina Media shareholders in the full-year 2012 was $66.6 million, compared to non-GAAP net loss attributable to VisionChina Media shareholders of $2.2 million (non-GAAP) in the full-year 2011.

The Company experienced a net loss of $246.4 million in the year ended December 31, 2012. As of December 31, 2012, the Group had net current assets of $0.7 million and cash and cash equivalent of $29 million. The Company has developed and implemented liquidity plan including obtaining new credit facilities, utilizing available facilities to roll forward short-term borrowings, negotiating with certain suppliers of concession rights for price reduction, and adopting strict control of operating activities and investing activities of the Company. Starting in the fourth quarter of 2012, the Company has started to cut down capital expenditure, operating expenditure and improving operating cash flow, and will continue to implement such cost-cutting initiatives in 2013. As of today, the Company had secured approximately $24.0 million in credit facilities which can be utilized in 2013. To improve the liquidity, the Company will continue to obtain additional finance.

Recent Developments

  • VisionChina Media entered into credit facility with China Construction Bank
    On January 14, 2013, VisionChina Media Group Company Limited ("CDMTV"), the consolidated variable interest entity of VisionChina Media entered into a loan agreement with China Construction Bank Shenzhen Shangbu Branch to provide a maximum loan amount of RMB 150.0 million (approximately $24.5 million) for working capital. The loan agreement is guaranteed by China (Shenzhen) Digital Technology Company Limited ("CDTC"), a wholly owned subsidiary of VisionChina Media and secured by CDMTV's entire accounts receivable as collateral.
  • VisionChina Media regains compliance with NASDAQ minimum bid price requirement
    As previously disclosed, the Company received a notice from The Nasdaq Stock Market LLC dated July 13, 2012, indicating that, for the 30 consecutive business days from May 31, 2012 to July 12, 2012, the bid price for the Company's American Depositary Shares ("ADSs") had closed below the minimum $1.00 per share required for continued listing under Nasdaq listing Rule 5450(a)(1). The Company was granted a period of 180 calendar days, or until January 9, 2013, to regain compliance with the minimum bid price requirement. The Company received notification from The Nasdaq Listing Qualifications department that it had regained compliance after maintaining a closing bid price of the Company's ADSs equal to or in excess of $1.00 per share for 10 consecutive trading days, from December 12, 2012 to December 26, 2012.

Conference Call

VisionChina Media's management will hold an earnings conference call at 8:00 p.m. U.S. Eastern Time on April 8, 2013 (8:00 a.m. Beijing/Hong Kong Time on April 9, 2013).

Dial-in details for the earnings conference call are as follows:

U.S. Toll Free: +1-866-519-4004
U.S. Toll: +1-718-354-1231
Hong Kong Toll: +852-2475-0994
International Toll: +65-6723-9381
Passcode for all regions: VisionChina Earnings Call

A replay of the conference call may be accessed by phone at the following numbers until April 16, 2013.

U.S. Toll Free: +1-855-452-5696
U.S. Toll: +1-646-254-3697
International Toll: +61-2-8199-0299
Passcode for all regions: 26180751

Additionally, a live and archived webcast of this conference call will be available on the Investor Relations section of VisionChina Media's website at http://www.visionchina.cn .

About VisionChina Media Inc.

VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of December 31, 2012, VisionChina Media's advertising network included 108,567 digital television displays on mass transportation systems in 19 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports, and other entertainment programming. For more information, please visit http://www.visionchina.cn .

Use of Non-GAAP Financial Measures

In addition to VisionChina Media's consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including net income/(loss) excluding non-cash share-based compensation expenses, amortization of intangible assets, contingent loss in connection with a litigation, impairment loss and income tax credit in connection with the impairment loss. The Company believes that the non-GAAP financial measures provide investors with another method for assessing VisionChina 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. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of VisionChina Media's liquidity and when planning and forecasting future periods. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. 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. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1 and its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Ms. Sharon Wu
VisionChina Media Inc.
Tel: +86-189-2677-2096
E-mail: sharon.wu@visionchina.cn

Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
Email: colin.wang@visionchina.cn

In the United States:

Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
E-mail: visn@ogilvy.com

 

VISIONCHINA MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousand U.S. dollars)









December 31, 2012


September 30, 2012


December 31, 2011



(Unaudited)


(Unaudited)


(Note 1)

ASSETS 






Current Assets






Cash and cash equivalents

29,012


63,071


80,310

Restricted cash

14,533


13,118


3,306

Accounts receivable, net

36,743


47,436


66,284

Amounts due from related parties

2,104


1,709


2,444

Prepaid expenses and other current assets                      

26,808


30,405


34,278

Total current assets 

109,200


155,739


186,622

Non-current Assets:






Fixed assets, net 

10,782


11,233


13,638

Goodwill 

-


-


141,406

Intangible assets 

367


361


39,537

Investments under equity method 

7,305


7,345


7,201

Other investments 

3,045


3,037


3,021

Long-term prepayments and deposits

17,537


20,420


19,896

Restricted cash

1,115


1,111


1,102

Deferred tax assets 

444


1,470


2,718

Total non-current assets 

40,595


44,977


228,519

TOTAL ASSETS 

149,795


200,716


415,141







LIABILITIES AND EQUITY  






Current Liabilities:






Short-term bank loans

8,998


46,766


20,465

Accounts payable

7,744


7,842


16,149

Amounts due to related parties

1,828


1,959


1,416

Consideration payable

64,000


64,000


64,000

Income tax payable 

24


20


118

Accrued expenses and other current liabilities

26,210


22,132


18,814

Total current liabilities

108,804


142,719


120,962

Non-current Liabilities:






Deferred tax liabilities

-


-


9,808

Other non-current liabilities

977


974


969

Total non-current liabilities

977


974


10,777

Total liabilities 

109,781


143,693


131,739







Equity:






Common shares

10


10


10

Additional paid-in capital

342,671


342,514


341,963

Accumulated deficit

(340,138)


(322,659)


(93,729)

Accumulated other comprehensive income

37,372


37,030


34,940

Total VisionChina Media Inc. shareholders' equity

39,915


56,895


283,184

Noncontrolling interest

99


128


218

Total equity

40,014


57,023


283,402

TOTAL LIABILITIES AND EQUITY

149,795


200,716


415,141








Note 1:  Information extracted from the audited consolidated financial statements included in the Company's 2011 annual report on Form 
             20-F filed with the Securities and Exchange Commission on April 26, 2012 and rounded to thousand of U.S. dollars. 

 

VISIONCHINA MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousand U.S. Dollars, except number of shares and per share data)


For three months ended


December 31, 2012


September 30, 2012


December 31, 2011


(Unaudited)


(Unaudited)


(Unaudited)







Revenues:






  Advertising service revenue 

25,457


32,957


51,597

  Other revenue

672


221


1,778

Total revenues

26,129


33,178


53,375

Cost of revenues:






  Advertising service cost 

(25,909)


(29,729)


(30,501)

  Other cost

(261)


(56)


(1,494)

Total cost of revenues

(26,170)


(29,785)


(31,995)

Gross (loss)/profit 

(41)


3,393


21,380

Operating expenses






  Selling and marketing expenses

(8,968)


(9,875)


(14,522)

  General and administrative expenses

(5,454)


(4,892)


(4,070)

  Contingent loss in connection with a litigation

(2,043)


(1,411)


(675)

Total operating expenses 

(16,465)


(16,178)


(19,267)

Share of (loss) profits  from equity method investees

(61)


213


(108)

Dividend income from cost method investments

162


-


142

Income from partial disposal of interest of a subsidiary

-


-


227

Operating (loss) profit

(16,405)


(12,572)


2,374

Interest income

141


210


51

Interest expense

(642)


(1,028)


(1,071)

Other income (expenses)

455


(92)


(18)

Net (loss) income before income taxes

(16,451)


(13,482)


1,336

Income tax  (expenses) benefits

(1,057)


(860)


303

Net loss

(17,508)


(14,342)


1,639

Net loss attributable to noncontrolling interest

29


29


29

Net loss attributable to VisionChina Media Inc. shareholders

(17,479)


(14,313)


1,668







Net loss per share:






  Basic

(0.17)


(0.14)


0.02

  Diluted

(0.17)


(0.14)


0.02







Net loss per ADS (1):






  Basic

(3.45)


(2.82)


0.33

  Diluted

(3.45)


(2.82)


0.33







Weighted average number of shares used in computation of net loss per share:






  Basic

101,373,145


101,372,240


101,327,916

  Diluted

101,373,145


101,372,240


101,327,916







Weighted average number of ADS  used in computation of net loss per ADS:






  Basic

5,068,657


5,068,612


5,066,396

  Diluted

5,068,657


5,068,612


5,066,396







Share-based compensation expenses during the related periods included in:






  Cost of revenues

(13)


(13)


(13)

  Selling and marketing expenses

(95)


(96)


(104)

  General and administrative expenses

(50)


(53)


(57)

Total

(158)


(162)


(174)







Reconciliation from GAAP net (loss) income attributable to VisionChina Media          
  Inc. shareholders to Adjusted Non-GAAP net (loss) income attributable to
  VisionChina Media Inc. shareholders:






Net (loss) income attributable to VisionChina Media Inc. shareholders (GAAP)

(17,479)


(14,313)


1,668

  Add back share-based compensation expenses

158


162


174

  Add back amortization of intangible assets

-


-


1,541

  Add back contingent loss in connection with a litigation

2,043


1,411


675

Net (loss) income attributable to VisionChina Media Inc. shareholders (Non-GAAP)

(15,278)


(12,740)


4,058







Note 1: ADS amounts adjusted for a change in the ratio of the Company's American Depositary Shares ("ADSs") to ordinary shares ("Shares") from 1:1 to 1:20 
            ("Ratio Change"), effective as of December 12, 2012.

 

 

VISIONCHINA MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousand U.S. Dollars, except number of shares and per share data)






For twelve months ended


December 31, 2012


December 31, 2011


(Unaudited)


(Note 1)





Revenues :




  Advertising service revenue 

114,741


179,416

  Other revenue

926


1,778

Total revenues

115,667


181,194

Cost of revenues :




  Advertising service cost 

(121,374)


(127,058)

  Other cost

(345)


(1,494)

Total cost of revenues

(121,719)


(128,552)

Gross (loss)/profit 

(6,052)


52,642

Operating expenses




  Selling and marketing expenses

(42,980)


(44,916)

  General and administrative expenses

(18,394)


(13,207)

  Other operating expense

-


(2,141)

  Impairment loss 

(178,814)


-

  Contingent loss in connection with a litigation

(6,275)


(3,375)

Total operating expenses 

(246,463)


(63,639)

Share of profits from equity method investees

46


231

Dividend income from cost method investments

162


142

Income from partial disposal of interest of a subsidiary

-


176

Operating loss

(252,307)


(10,448)

Interest income 

696


1,711

Interest expense 

(2,615)


(4,717)

Other income

151


42

Net loss before income taxes

(254,075)


(13,412)

Income tax benefit

7,547


794

Net loss

(246,528)


(12,618)

Net loss attributable to noncontrolling interest

119


115

Net loss attributable to VisionChina Media Inc. shareholders

(246,409)


(12,503)





Net loss per share:




  Basic

(2.43)


(0.12)

  Diluted

(2.43)


(0.12)





Net loss per ADS (2):




  Basic

(48.62)


(2.45)

  Diluted

(48.62)


(2.45)





Weighted average number of shares used in computation of net loss per share:




  Basic

101,351,222


102,047,414

  Diluted

101,351,222


102,047,414





Weighted average number of ADS used in computation of net loss per ADS:




  Basic

5,067,561


5,102,371

  Diluted

5,067,561


5,102,371





Share-based compensation expenses during the related periods included in:




  Cost of revenues 

(53)


(58)

  Selling and marketing expenses 

(395)


(449)

  General and administrative expenses 

(221)


(310)

Total 

(669)


(817)





Reconciliation from GAAP net loss attributable to VisionChina Media Inc.               
  shareholders to Adjusted Non-GAAP net loss attributable to VisionChina
  Media Inc. shareholders:




Net loss attributable to VisionChina Media Inc. shareholders (GAAP)

(246,409)


(12,503)

  Add back share-based compensation expenses during the related periods

669


817

  Add back amortization of intangible assets during the related periods

3,106


6,071

  Add back provision for contingent loss in connection with a litigation

6,275


3,375

  Add back impairment loss of goodwill and intangible assets in the related period

178,814


-

  Subtract tax credit in connection to impairment of intangible assets

(9,102)


-

Net loss attributable to VisionChina Media Inc. shareholders (Non-GAAP)

(66,647)


(2,240)





Note 1:  Information extracted from the audited consolidated financial statements included in the Company's 2011 annual report on Form 20-F 
             filed with the Securities and Exchange Commission on June 30, 2011, and rounded to thousands of US dollars.





 

Note 2:  ADS amounts adjusted for a change in the ratio of the Company's American Depositary Shares ("ADSs") to ordinary shares ("Shares") 
             from 1:1 to 1:20, effective as of December 12, 2012.

 

SOURCE VisionChina Media Inc.



RELATED LINKS
http://www.visionchina.cn

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