China Mass Media Reports Fourth Quarter and Year 2009 Unaudited Financial Results
BEIJING, March 8 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE: CMM), a leading media company in China, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2009.
Fourth Quarter 2009 Highlights(1)
-- Total net revenues were RMB 117.2 million (US$ 17.2 million), an
increase of 51.2% from the fourth quarter of 2008, an increase of 45.2%
from the third quarter of 2009 and 11.6% over the top range of the
revenue guidance provided previously.
-- Operating income was RMB 36.6 million (US$ 5.4 million), an increase of
159.8% from the fourth quarter of 2008 and an increase of 902.0% from
the third quarter of 2009.
-- Net income was RMB 32.0 million (US$ 4.7 million), an increase of 87.5%
from the fourth quarter of 2008 and an increase of 692.2% from the
third quarter of 2009.
-- During the fourth quarter 2009, net cash used in operating activities
was RMB 171.9 million ($25.2 million), compared to net cash provided by
operating activities of RMB 81.7 million in the fourth quarter of 2008
and net cash used in operating activities of RMB 396.6 million in the
third quarter of 2009.
Fiscal Year 2009 Financial Highlights
-- Total net revenues were RMB425.0 million (US$ 62.3 million) in 2009, an
increase of 20.4% from fiscal year 2008.
-- Operating income was RMB 102.2 million (US$ 15.0 million) in 2009, a
decrease of 12.6% from fiscal year 2008.
-- Net income was RMB 96.0 million (US$ 14.1 million) in 2009, a decrease
of 13.0% from fiscal year 2008.
-- Basic and diluted earnings per ADS were RMB 4.02 (US$ 0.59) in 2009, a
decrease of 28.6% from RMB 5.63 in fiscal year 2008.
(1) The U.S. dollar (US$) amounts disclosed in this press release are
presented solely for the convenience of the reader. The conversion of
Renminbi (RMB) into US$ in this release is based on the noon buying
rate in The City of New York for cable transfers in RMB per US$ as
certified for customs purposes by the Federal Reserve Bank of New York
on December 31, 2009, which was RMB6.8259 to US$1.00. The percentages
stated are calculated based on RMB.
"We are pleased to announce a strong improvement in our financial results in the past quarter," commented Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media. "The strong growth we achieved both sequentially and compared to the same period one year ago was primarily driven by the recovery of advertising spending in China.
"Conditions in the Chinese advertising market began to improve towards the end of 2009. We saw our clients start to become much more active in allocating their advertising budgets to both new and old projects during the fourth quarter. We took advantage of our strong media resources to meet their increased demand and higher advertising budgets.
"Back in the second quarter of last year, we took the opportunity during a particularly weak period to initiate number of changes to reposition ourselves for future growth. Since then, we recruited a number of senior sales executives and doubled the size of our sales force. In addition, we restructured our sales team to better cater to our customers and implemented a new incentive scheme to better motivate our sales people. We believe we started to see the full benefit of these moves in the fourth quarter as it allowed us to take full advantage of the recovery in our market.
"By utilizing our expanded marketing strategy, we were able to seize a number of new market opportunities. We continued to add new clients and were able to effectively increase revenues from our existing clients. In particular, we are proud to report that we secured a number of significant new direct accounts. We will continue to improve our quality of service to meet the demands of our direct customers. Our core products, the 'Day Time Advertising Package' and 'Television Guide' on CCTV-1 and 2 saw revenue growth of over 35% on a year-over-year basis and more than 80% growth on a quarter-over-quarter basis. We also recorded strong revenue and net profit growth on CCTV-4, which has historically been a loss-making channel for us.
"We are confident that the economy and the advertising industry will remain strong throughout 2010. We closely reviewed our stock of media resources last quarter and decided to intentionally give up certain high risk and low profitability products. We intend to focus our efforts on the sales and marketing of our primary resources to maximize our profit margin."
Mr. Eric Cheung, the Company's Chief Financial Officer, added, "Our core strategy in 2010 continues to be focused on further strengthening the sales of our media resources by continuing to expand our client base, while simultaneously increasing revenues from existing clients. As always, we will continue to enhance our production and client service capabilities to provide a one-stop comprehensive solution for our clients. Our growth strategy continues to focus on building the business organically through the sales of our media resources, while monitoring the market for potential strategic acquisition opportunities to diversify into different advertising sectors in order to provide a comprehensive and one-stop solution to our customers."
Fourth Quarter 2009 Financial Results
Revenues
Revenues from advertising agency services were RMB 117.0 million (US$ 17.1 million) in the fourth quarter of 2009, an increase of 75.3% from RMB 66.8 million in the same period in 2008, and an increase of of 46.6% from RMB 79.8 million in the third quarter of 2009. The increase from the fourth quarter of 2008 resulted primarily from strong advertising spending recovery and seasonality factors, as the fourth quarter is traditionally the peak season for advertising expenditures. The Company also secured new advertisers during the quarter, generating higher revenues from "Day Time Advertising Package," "Television Guide" and CCTV-4 sales.
Revenues from production and sponsorship services were RMB 5.3 million (US$ 0.78 million) in the fourth quarter of 2009, a decrease of 61.8% from RMB 13.9 million in the fourth quarter of 2008, and an increase of 88.0% from RMB 2.8 million in the third quarter of 2009.
The year over year decrease was mainly attributable to the decreases in commercial advertising production and less sponsorship revenue secured from promotion of public service announcements.
Sequentially, the increase was mainly due to the completion and delivery of several commercial advertisements, including a core branding promotion film produced for CCTV.
Operating costs and expenses
Cost of revenues was RMB 67.3 million (US$ 9.9 million) in the fourth quarter of 2009, an increase of 33.5% from RMB 50.4 million in the fourth quarter of 2008 and an increase of 3.4% from RMB 65.1 million in the third quarter of 2009. The increase from the fourth quarter of 2008 was primarily due to higher media resource underwriting costs for CCTV-4.
Sales and marketing expenses were RMB 6.6 million (US$ 0.96 million) in the fourth quarter of 2009, an increase of 95.1% from RMB 3.4 million in the fourth quarter of 2008 and an increase of 68.3% from RMB 3.9 million in the third quarter of 2009. The increase from both the fourth quarter of 2008 and sequentially was primarily due to the increase in sales commission and higher salaries incurred for the Company's additional sales management and employees.
General and administrative expenses were RMB 6.6 million (US$ 0.97 million) in the fourth quarter of 2009, a decrease of 31.2% from RMB 9.6 million in the fourth quarter of 2008 and a decrease of 17.5% from RMB 8.0 million in the third quarter of 2009. The decrease from both the fourth quarter of 2008 and sequentially was primarily due to the reversal of bad-debt allowance upon collection of a client's receivable.
Operating income, as a result of the foregoing factors, was RMB 36.6 million (US$ 5.4 million) in the fourth quarter of 2009, an increase of 159.8% from RMB 14.1 million in the fourth quarter of 2008 and an increase of 902.0% from RMB 3.7 million in the third quarter of 2009. The Company's operating margin was 31.3%, 4.5% and 18.2% for the three months ended December 31, 2009, September 30, 2009 and December 31, 2008, respectively.
Net income was RMB 32.0 million (US$ 4.7 million) in the fourth quarter of 2009, an increase of 87.5% from RMB 17.1 million in the same period of 2008 and an increase of 692.2% from RMB 4.0 million in the third quarter of 2009. The Company's net margin was 27.3%, 5.0% and 22.0% for the three months ended December 31, 2009, September 30, 2009 and December 31, 2008, respectively.
Basic and diluted earnings per ADS for the fourth quarter of 2009 increase to RMB 1.34 (US$ 0.2), compared to basic and diluted earnings per ADS of RMB 0.71 for the fourth quarter of 2008 and RMB 0.17 for the third quarter of 2009. Each ADS represents 30 ordinary shares.
Fiscal Year 2009 Financial Results
Total Net Revenues
Total net revenues were RMB 425.0 million (US$ 62.3 million) in fiscal year 2009, an increase of 20.4 %, or RMB 72.0 million from RMB 353.0 million in fiscal year 2008. The year-over-year increase was primarily due to the recovery of the Chinese economy, the effective implementation of the Company's marketing strategy and a substantial increase in the sales of the Company's "Day Time Advertising Package," "Television Guide," CCTV-4 products and recognition of 2008 Beijing Olympics-related special event revenue in 2009.
Operating Costs and Expenses
Operating costs and expenses were RMB 322.8 million (US$ 47.3 million) in fiscal year 2009, an increase of 36.7%, or RMB 86.7 million, from RMB 236.1 million in fiscal year 2008. The year-over-year increase in operating costs and expenses was mainly due to higher media resource underwriting costs for CCTV-4.
Operating Income and Margin
As a result of the foregoing factors, operating income was RMB 102.2 million (US$ 15.0 million) in fiscal year 2009, a decrease of 12.6 %, or RMB 14.7 million, from RMB 116.9 million in fiscal year 2008. Operating margin was 24.0 % in 2009 compared to 33.1% in 2008.
Net Income
Net income was RMB 96.0 million (US$ 14.1 million) in fiscal year 2009, a decrease of 13.0%, or RMB 14.4 million, from RMB 110.4 million in fiscal year 2008. Basic and diluted earnings per ADS were RMB 4.02 (US$ 0.59) in fiscal year 2009, as compared to basic and diluted earnings per ADS of RMB 5.63 (US$0.83) in fiscal year 2008.
Cash and cash equivalents
As of December 31, 2009, the Company had cash and cash equivalents of RMB 508.8 million ($74.5 million) compared with RMB 680.6 million at September 30, 2009. The decrease in cash and cash equivalents was mainly due to payments to CCTV and a related party for advertising media fees payables.
Business Outlook
The Company currently expects to generate total net revenues of between RMB58 million to RMB 64 million for the first quarter of 2010, which represents a potential decrease of 57.3% to 61.3 % compared to the first quarter of 2009. The expected decrease will be mainly because the Company no longer owns the advertising rights to CCTV's Chinese New Year Gala show, and because the Company now has fewer media resources available for sale on CCTV-4 due to efforts to improve profit margins. The guidance also reflects a potential decrease of 45.4% to 50.5% compared to the fourth quarter of 2009, primarily due to seasonality factors.
This forecast reflects the Company's current and preliminary estimate, which is subject to change.
Conference Call
China Mass Media will host a conference call and live webcast at 8:00 a.m. Eastern Time (EST) (9:00 p.m., Beijing time) on March 8, 2010.
The dial-in details for the live conference call are as follows:
-- U.S. Toll Free Number: +1 866 761 0748
-- International dial-in number: +1 617 614 2706
-- China Toll Free Number: +10 800 130 0399
-- Hong Kong Toll Free Number: +800 96 3844
Passcode: CMM
A live webcast of the conference call will be available on the investor relations section of the Company's website at: http://www.chinaTheCompany.com . A replay of the webcast will be available for three months.
A telephone replay of the call will be available for twenty-four hours after the conclusion of the conference call. The dial-in details for the replay are as follows:
-- U.S. Toll Free Number: +1 888 286 8010
-- International dial-in number: +1 617 801 6888
Passcode: 21500418
Safe Harbor Statement:
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements involve a number of risks and uncertainties.
A number of factors could cause the Company's actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Securities and Exchange Commission filings of the Company. China Mass Media does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
About China Mass Media Corp.
As a leading television advertising company in China, the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers more than 460 minutes of advertising time slots on CCTV Channels 1, 2, 4, E and F. CCTV is the largest television network in China. The Company has produced over 300 advertisements and has won a number of prestigious advertising awards in China.
http://www.chinammia.com
For further information, please contact:
China Mass Media Corp.
Julie Sun
Vice President of Corporate Development
Tel: +86-10-8809-1050
Email: [email protected]
Christensen
Hong Kong:
Roger Hu
Tel: +852-2117-0861
Email: [email protected]
United States:
Linda Bergkamp
Tel: +1-480-614-3004
Email: [email protected]
CHINA MASS MEDIA CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED,
December September December December
31, 2008 30, 2009 31, 2009 31, 2009
RMB RMB RMB US$
Revenues:
Advertising agency
services 66,758,679 79,826,310 117,037,635 17,146,110
Advertisement
production and
sponsorship services 13,945,730 2,831,067 5,323,586 779,910
Total revenues 80,704,409 82,657,377 122,361,221 17,926,020
Less: Business tax (3,198,067) (1,959,112) (5,201,731) (762,058)
Total net revenues 77,506,342 80,698,265 117,159,490 17,163,962
Operating costs and
expenses:
Cost of revenues (50,430,360) (65,123,775) (67,347,729) (9,866,498)
Sales and marketing
expenses (3,361,620) (3,897,454) (6,559,458) (960,966)
General and
administrative
expenses (9,609,843) (8,020,381) (6,614,127) (968,975)
Total operating costs
and expenses (63,401,823) (77,041,610) (80,521,314) (11,796,439)
Operating income 14,104,519 3,656,655 36,638,176 5,367,523
Interest and
investment income 5,021,924 1,647,683 1,090,272 159,726
Other expense /
(income), net 363,420 (189,169) 458,323 67,145
Income before tax 19,489,863 5,115,169 38,186,771 5,594,394
Income tax expense (2,419,222) (1,075,459) (6,182,705) (905,771)
Net income 17,070,641 4,039,710 32,004,066 4,688,623
Earnings per ordinary
share, basic and
diluted 0.02 0.006 0.045 0.007
Earnings per ADS,
basic and diluted 0.71 0.17 1.34 0.20
Shares used in
calculating earnings
per ordinary share,
basic 716,375,000 716,375,000 716,375,000 716,375,000
Shares used in
calculating earnings
per ordinary share,
diluted 716,375,000 721,319,072 718,460,480 718,460,480
Shares used in
calculating earnings
per ADS, basic 23,879,167 23,879,167 23,879,167 23,879,167
Shares used in
calculating earnings
per ADS, diluted 23,879,167 24,043,989 23,948,683 23,948,683
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED,
December December December December
31, 2007 31, 2008 31, 2009 31, 2009
RMB RMB RMB US$
Revenues:
Advertising agency
services 202,637,180 334,052,626 397,279,413 58,201,763
Special events
services 15,990,464 -- 14,600,000 2,138,912
Advertisement
production and
sponsorship
services 60,018,223 34,934,895 30,304,634 4,439,654
Total revenues 278,645,867 368,987,521 442,184,047 64,780,329
Less: Business tax (23,110,351) (16,005,683) (17,189,579) (2,518,288)
Total net revenues 255,535,516 352,981,838 424,994,468 62,262,041
Operating costs and
expenses:
Cost of revenues (30,147,760) (203,399,803) (270,239,024) (39,590,241)
Sales and marketing
expenses (5,599,870) (8,204,365) (19,362,444) (2,836,614)
General and
administrative
expenses (8,504,520) (24,486,814) (33,193,760) (4,862,913)
Total operating
costs and expenses (44,252,150) (236,090,982) (322,795,228) (47,289,768)
Operating income 211,283,366 116,890,856 102,199,240 14,972,273
Interest and
investment income 10,773,971 15,102,846 9,494,036 1,390,884
Other expense /
(income), net (3,128,447) (1,441,420) 532,325 77,986
Income before tax 218,928,890 130,552,282 112,225,601 16,441,143
Income tax expense (10,618,863) (20,138,650) (16,196,322) (2,372,774)
Net income 208,310,027 110,413,632 96,029,279 14,068,369
Net income allocated
to participating
preferred shares (36,495,917) (9,751,329) -- --
Net income available
to ordinary
shareholders 171,814,110 100,662,303 96,029,279 14,068,369
Earnings per
ordinary share,
basic and diluted 0.42 0.19 0.13 0.02
Earnings per ADS,
basic 12.50 5.63 4.02 0.59
Earnings per ADS,
diluted 12.50 5.63 4.01 0.59
Shares used in
calculating
earnings per
ordinary share,
basic 412,400,000 536,149,385 716,375,000 716,375,000
Shares used in
calculating
earnings per
ordinary share,
diluted 412,400,000 536,149,385 718,755,755 718,755,755
Shares used in
calculating
earnings per ADS,
basic 13,746,667 17,871,646 23,879,167 23,879,167
Shares used in
calculating
earnings per ADS,
diluted 13,746,667 17,871,646 23,958,525 23,958,525
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31, December 31,
2008 2009 2009
RMB RMB US$
Assets
Current assets:
Cash and cash equivalents 566,889,261 508,778,014 74,536,400
Short-term investments 500,000,000 80,000,000 11,720,066
Notes receivable -- 1,937,450 283,838
Accounts receivable, net of
allowance for doubtful accounts
of RMB 4,319,808 and RMB
6,507,638 as of December 31,
2008 and 2009 14,367,193 375,568 55,021
Prepaid expenses and other
current assets 68,301,523 64,560,752 9,458,204
Deposit paid to a related party 1,000,000 -- --
Total current assets 1,150,557,977 655,651,784 96,053,529
Non-current assets:
Property and equipment, net 57,261,208 55,464,401 8,125,581
Total non-current assets 57,261,208 55,464,401 8,125,581
Total Assets 1,207,819,185 711,116,185 104,179,110
Liabilities and Shareholder's
Equity
Current liabilities:
Accounts payable 330,085,426 35,846,460 5,251,536
Customer advances 75,422,483 20,657,147 3,026,289
Dividend payable 96,335,115 -- --
Accrued expenses and other
current liabilities 13,765,090 18,133,340 2,656,549
Taxes payable 51,958,677 23,198,999 3,398,673
Amount due to related parties 252,209,794 127,068,624 18,615,659
Total current liabilities 819,776,585 224,904,570 32,948,706
Total Liabilities 819,776,585 224,904,570 32,948,706
Commitments and Contingencies
Shareholders' equity:
Ordinary shares ($0.001 par
value; 900,000,000,000 shares
authorized; 716,375,000 issued
and outstanding as of December
31, 2008 and 2009) 4,893,500 4,893,500 716,902
Additional paid-in capital 330,214,330 332,354,066 48,690,146
Statutory reserves 25,000,000 25,000,000 3,662,520
Retained earnings 27,934,770 123,964,049 18,160,836
Total Shareholders' Equity 388,042,600 486,211,615 71,230,404
Total Liabilities and
Shareholder's Equity 1,207,819,185 711,116,185 104,179,110
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED
December September December December
31, 2008 30, 2009 31, 2009 31, 2009
RMB RMB RMB US$
Cash flows from
operating
activities:
Net income 17,070,641 4,039,710 32,004,066 4,688,622
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation
expense 337,967 766,329 795,561 116,550
Investment income (2,341,877) (956,768) (703,452) (103,056)
Exchange loss/
(gain) (356,177) 202,609 36,929 5,410
Share-based
compensation 844,190 443,108 (332,378) (48,694)
Changes in assets
and liabilities:
Notes receivable -- (2,392,460) 455,010 66,659
Accounts
receivable (1,156,339) 3,763,062 345,110 50,559
Prepaid expense
and other current
assets (8,721,551) (887,194) (29,549,357) (4,329,005)
Deposit paid to a
related party -- 391,664 1,000,000 146,501
Other non-current
assets -- -- --
Accounts payable 16,234,690 (303,994,566) (135,696,443) (19,879,641)
Customer advances 37,266,895 29,770,913 (39,071,097) (5,723,948)
Accrued expenses
and other current
liabilities 5,076,807 (3,656,772) 2,377,819 348,352
Taxes payable 1,639,875 (366,530) 4,838,147 708,793
Amount due to
related parties 15,789,345 (123,772,918) (8,364,352) (1,225,384)
Net cash (used in)
/ provided by
operating
activities 81,684,466 (396,649,813) (171,864,437) (25,178,282)
Cash flows from
investing
activities:
Purchase of short-
term investments (100,000,000) (50,000,000) -- --
Purchase of
property and
equipment (6,337,232) (415,185) (644,551) (94,427)
Proceeds from
investment income 1,986,603 923,891 726,247 106,396
Net cash provided
by / (used in)
investing
activities (104,350,629) (49,491,294) 81,696 11,969
Cash flows from
financing
activities:
Payment for
issuance of
ordinary shares (2,690,942) -- -- --
Net cash used in
financing
activities (2,690,942) -- -- --
Effect of foreign
currency exchange 356,177 (202,609) (36,931) (5,410)
Net decrease in
cash and cash
equivalents (25,000,928) (446,343,716) (171,819,672) (25,171,723)
Cash and cash
equivalents at
beginning of the
period 591,890,189 1,126,941,402 680,597,686 99,708,123
Cash and cash
equivalents at
end of the period 566,889,261 680,597,686 508,778,014 74,536,400
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED
December December December December
31, 2007 31, 2008 31, 2009 31, 2009
RMB RMB RMB US$
Cash flows from
operating
activities:
Net income 208,310,027 110,413,632 96,029,279 14,068,369
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation
expense 1,202,418 1,045,357 3,074,157 450,367
Deemed related
party contribution 1,977,497 -- -- --
Investment income (2,040,583) (9,772,000) (5,994,921) (878,261)
Exchange loss -- 1,440,592 363,439 53,244
Share-based
compensation -- 1,699,429 2,139,736 313,473
Changes in assets
and liabilities:
Notes receivable -- -- (1,937,450) (283,838)
Accounts receivable (5,105,931) (9,067,862) 13,991,625 2,049,785
Prepaid expense and
other current
assets (4,093,197) (13,963,074) (27,448,791) (4,021,271)
Amount due from a
related party -- (1,000,000) 1,000,000 146,501
Other non-current
assets 1,930,830 -- -- --
Accounts payable 191,910,225 211,538,660 (294,238,966) (43,106,252)
Customer advances 52,467,975 (24,463,189) (54,765,336) (8,023,167)
Accrued expenses
and other current
liabilities (867,638) 9,010,938 4,368,249 639,952
Taxes payable 8,415,217 5,693,062 1,821,883 266,907
Amount due to
related parties -- 169,162,446 (87,952,669) (12,885,139)
Net cash (used in)
/ provided by
operating
activities 454,106,840 451,737,991 (349,549,765) (51,209,330)
Cash flows from
investing
activities:
Purchase of short-
term investments (280,000,000) (280,000,000)
Proceed from short-
term investments -- -- 420,000,000 61,530,348
Proceed from sale
of long-term
investment held on
behalf of
shareholder -- 15,037,390 -- --
Purchase of
property and
equipment (255,257) (6,685,021) (23,451,242) (3,435,626)
Proceeds from
investment income 1,861,139 9,153,918 6,602,921 967,333
Net cash provided
by / (used in)
investing
activities (278,394,118) (262,493,713) 403,151,679 59,062,055
Cash flows from
financing
activities:
Proceeds from
issuance of
ordinary shares -- 287,744,060 -- --
Proceeds from
issuance of
preferred shares -- 603 -- --
Movement of
shareholder's cash
and investment
accounts/payable
to shareholder 766,967 (15,043,236) -- --
Cash distributed
and payment for
fixed assets
transferred in
connection with
the Reorganization (370,828,921) (2,683,208) (15,000,000) (2,197,512)
Dividends
distributed (177,390,728) (29,194,814) (96,335,115) (14,113,174)
Net cash (used in)
/ provided by
financing
activities (547,452,682) 240,823,405 (111,335,115) (16,310,686)
Effect of foreign
currency exchange (912,908) (1,440,592) (378,046) (55,385)
Net (decrease) /
increase in cash
and cash
equivalents (372,652,868) 428,627,091 (58,111,247) (8,513,346)
Cash and cash
equivalents at
beginning of the
year 510,915,038 138,262,170 566,889,261 83,049,746
Cash and cash
equivalents at end
of the year 138,262,170 566,889,261 508,778,014 74,536,400
CHINA MASS MEDIA CORP.
SELECTED OPERATING DATA
THREE MONTHS ENDED
December September December
31, 2008 30, 2009 31, 2009
Number of programs secured
during the period 40 41 41
Total advertising time obtained
(seconds) 2,927,880 2,938,860 2,933,640(1)
Total advertising time sold
(seconds) 249,379 264,660 746,667(2)
(1) Represents the total amount of time during regular television
programs secured through our contracts with CCTV, including 549,000
seconds from CCTV-1, CCTV-2 and CCTV-4 and 2,384,640 seconds from CCTV-E
and CCTV-F.
(2) During the three-month periods ended December 31, 2008, September 30,
2009 and December 31, 2009, the company has sold nil, 27,840 seconds and
392,160 seconds of advertisements in CCTV-E and CCTV-F.
YEAR ENDED
December December December
31, 2007 31, 2008 31, 2009
Number of programs secured
during the period 3 40 41
Total advertising time obtained
(seconds)(3) 783,240 6,818,220 11,660,760(3)
Total advertising time sold
(seconds)(4) 631,620 1,022,861 2,127,473(4)
(3) Represents the total amount of time during regular television
programs secured through our contracts with CCTV, including 2,199,960
seconds from CCTV-1, CCTV-2 and CCTV-4 and 9,460,800 seconds from CCTV-E
and CCTV-F.
(4) During the year ended December 31, 2007, 2008 and 2009, the company
has sold nil, nil and 1,038,840 seconds of advertisements in CCTV-E and
CCTV-F.
RECONCILIATIONS OF UNAUDITED NON-GAAP RESULTS OF OPERATIONS MEASURES TO
THE NEAREST COMPARABLE GAAP MEASURES (*)
Three months ended December 31, 2008
Non-GAAP
GAAP Result Adjustment Result
RMB RMB RMB
Operating income 14,104,519 844,190 14,948,709
Net income 17,070,641 844,190 17,914,831
Three months ended December 31, 2009
GAAP Result Adjustment Non-GAAP
Result
RMB RMB RMB
Operating income 36,638,176 (332,378) 36,305,798
Net income 32,004,066 (332,378) 31,671,688
Year ended December 31, 2008
GAAP Result Adjustment Non-GAAP
Result
RMB RMB RMB
Operating income 116,890,856 1,699,429 118,590,285
Net income 110,413,632 1,699,429 112,113,061
Year ended December 31, 2009
GAAP Result Adjustment Non-GAAP
Result
RMB RMB RMB
Operating income 102,199,240 2,139,736 104,338,976
Net income 96,029,279 2,139,736 98,169,015
(*) The adjustment is for share-based compensation expenses.
Non-GAAP Disclosure
In addition to the unaudited consolidated financial information presented in accordance with US GAAP, management uses a non-GAAP measure of net income excluding non-cash share-based compensation. Company management believes excluding the share-based compensation expenses from non-GAAP financial measures is useful for the investors' understanding of overall current financial performance. Nevertheless, the limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been and will continue to be a significant recurring expense in the Company's business.
The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" set forth above, which shall be read in conjunction with the preceding financial information presented in accordance with US GAAP.
SOURCE China Mass Media Corp.
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