BEIJING, Nov. 23, 2015 /PRNewswire/ -- VisionChina Media
Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN),
China's largest out-of-home
digital television advertising network on mass transportation
systems and the leading provider of urban mass transit Wi-Fi, today
announced its unaudited financial results for the third quarter
ended September 30, 2015.
Mr. Limin Li, VisionChina Media's Chairman and
Chief Executive Officer, commented,
"As the leading free Wi-Fi service provider of China's urban mass transportation system, we
are pleased to see the number of registered users on our Wi-Fi
network grow to nearly 10 million. Looking ahead, we remain
committed to providing a high quality free Wi-Fi service for the
commuters, with a focus on our in-depth Big Data initiatives for
China's urban mass transit system.
In November, we announced our partnership with the Chinese
Academy of Sciences (CAS) to develop an integrated Big Data
management platform, which allows us to analyze the user behaviors
and preferences of our large user base. By combining our strong
research and development capabilities with the significant
resources and experience from CAS, we remain focused on continually
improving our service quality and user experience, while achieving
the full value of our platform. "
Mr. Stanley Wang, VisionChina
Media's Chief Financial Officer, added, "Under our recently
implemented cost control initiatives, our subway business for the
third quarter of 2015 achieved profitable levels, which gives us
the confidence to extend these successful initiatives to additional
business segments and improve the margins of our bus business. As
the number of registered users for our Wi-Fi service continued to
grow rapidly in the third quarter of 2015, we look forward to
further growing our Wi-Fi business and capitalizing on future
growth opportunities."
As of the date of this press release, VisionChina Media, through
its consolidated affiliate Qianhai Mobile, has secured exclusive
concession rights for bus Wi-Fi services in 30 cities across
China, including Shanghai, Shenzhen, Guangzhou and Tianjin, covering approximately 80,000 buses.
Currently, Qianhai Mobile provides free Wi-Fi Internet services on
over 30,000 buses under the brand name "VIFI," with approximately
10 million registered users.
Third Quarter 2015 Results
VisionChina Media's total revenues were $23.2 million in the third quarter of 2015,
representing a decrease of 21.6% from $29.7
million in the third quarter of 2014, and a slight increase
of 0.3% from $23.2 million in the
second quarter of 2015.
Total broadcasting hours in the third quarter of 2015 were
32,340 hours, compared to 37,978 hours in the third quarter of 2014
and 31,988 hours in the second quarter of 2015.
In the third quarter of 2015, the Company sold a total of
207,532 advertising minutes in its network, compared to 363,927
advertising minutes in the third quarter of 2014, and 299,204
advertising minutes in the second quarter of 2015.
The Company sold an average of 6.42 advertising minutes per
broadcasting hour in the third quarter of 2015, compared to 9.58
advertising minutes per broadcasting hour in the third quarter of
2014 and 9.35 advertising minutes per broadcasting hour in the
second quarter of 2015.
During the third quarter of 2015, 257 advertisers purchased
advertising time on the Company's advertising network, either
directly or through advertising agents, compared to 312 advertisers
in the third quarter of 2014, and 245 advertisers in the second
quarter of 2015.
Media cost, which is the most significant component of
advertising service cost, was $15.5
million in the third quarter of 2015, a decrease of 18.1%
from $18.9 million in the third
quarter of 2014 and an increase of 16.1% from $13.3 million in the second quarter of 2015.The
quarter-over-quarter increase was mainly due to the increased cost
from non-exclusive operating contracts.
Gross profit in the third quarter of 2015 was $3.2 million, compared to $7.6 million in the third quarter of 2014 and
$5.2 million in the second quarter of
2015.
Advertising service gross margin was 13.6% in the third quarter
of 2015, compared to 25.4% in the third quarter of 2014 and 23.7%
in the second quarter of 2015.
Selling and marketing expenses were $3.8
million in the third quarter of 2015, a decrease of 16.0%
from $4.5 million in the third
quarter of 2014, and an increase of 12.0% from $3.4 million in the second quarter of 2015.
Selling and marketing expenses accounted for 16.6% of the Company's
advertising service revenue in the third quarter of 2015, compared
to 15.2% in the third quarter of 2014 and 15.2% in the second
quarter of 2015.
General and administrative expenses were $2.6 million in the third quarter of 2015, a
decrease of 22.3% from $3.3 million
in the third quarter of 2014, and an increase of 86.6% from
$1.4 million in the second quarter of
2015. The quarter-over-quarter increase was primarily due to higher
bad debt allowance.
Research and development expenses were $0.4 million in the third quarter of 2015,
representing costs related to the Company's Wi-Fi development
activities.
Operating loss was $4.3 million in
the third quarter of 2015, compared to an operating loss of
$1.5 million in the third quarter of
2014, and an operating profit of $0.5
million in the second quarter of 2015.
The Company recorded net interest expense of $1.4 million in the third quarter of 2015,
compared to $1.4 million in the third
quarter of 2014 and $1.5 million in
the second quarter of 2015.
Net loss attributable to VisionChina Media shareholders (GAAP)
was $5.0 million in the third quarter
of 2015, compared to a net loss attributable to VisionChina Media
shareholders (GAAP) of $2.9 million
in the third quarter of 2014, and a net loss attributable to
VisionChina Media shareholders (GAAP) of $0.2 million in the second quarter of 2015.
Basic and diluted net loss per ADS (GAAP) were $0.98 in the third quarter of 2015.
The Company's non-GAAP financial measure, net loss attributable
to VisionChina Media shareholders excluding share-based
compensation expenses, was $5.0
million in the third quarter of 2015, compared to a non-GAAP
net loss of $2.8 million in the
third quarter of 2014, and a non-GAAP net loss of $0.1 million in the second quarter of 2015.
As of September 30, 2015, the
Company had cash and cash equivalents of $10.5 million, compared to $19.5 million as of December 31, 2014. Net cash used in operating
activities was $3.3 million in the
third quarter of 2015, compared to net cash provided by operating
activities of $2.8 million in the
second quarter of 2015.
Depreciation and amortization was $0.3
million and capital expenditures were $1.8 million in the third quarter of 2015.
Business Outlook
For the fourth quarter of 2015, the Company expects to generate
advertising service revenue in the range of $16.0 million to $16.5 million.
The guidance is based on an exchange rate of RMB6.3538 per $1.00.
The Company notes that its guidance is based on its current
network that, as of the date of this press release, has been
secured by exclusive agency agreements or joint venture contracts.
If the number of cities in the Company's network expands or
contracts, management's forecast could be affected.
Conference Call
VisionChina Media's management will hold an earnings conference
call at 8:00 p.m. U.S. Eastern Time
on November 23, 2015 (9:00 a.m. Beijing/Hong Kong Time on November 24, 2015).
Dial-in details for the earnings conference call are as
follows:
U.S. Toll Free: +1-888-346-8982
Hong Kong Toll: +852-3018-4992
International Toll: +1-412-902-4272
Participants should call in at least 5 minutes before the
scheduled start time and ask to be connected to the "VisionChina
Media call."
A replay of the conference call may be accessed by phone at the
following numbers until November 30,
2015.
U.S. Toll Free: +1-877-344-7529
International Toll: +1-412-317-0088
Replay Access Code: 10076341
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 September 30,
2015, VisionChina Media's advertising network included
approximately 97,757 digital television displays on mass
transportation systems in 18 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 and contingent loss in connection
with a litigation. 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. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86-134-2090-9426
E-mail: shuning.yi@visionchina.cn
In the United
States:
The Piacente Group, Inc.
Mr. Don Markley
Tel: +1-212-481-2050
E-mail: visionchina@tpg-ir.com
|
VISIONCHINA MEDIA
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousand U.S. dollars)
|
|
|
|
|
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Note
1)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
10,483
|
|
21,067
|
|
19,485
|
|
Restricted
cash
|
3,735
|
|
1,314
|
|
488
|
|
Accounts receivable,
net
|
36,819
|
|
38,056
|
|
36,927
|
|
Amounts due from
related parties
|
1,872
|
|
1,820
|
|
2,467
|
|
Prepaid expenses and
other current assets
|
19,487
|
|
19,544
|
|
20,157
|
|
Total current
assets
|
72,396
|
|
81,801
|
|
79,524
|
|
Non-current
Assets:
|
|
|
|
|
|
|
Fixed assets,
net
|
13,924
|
|
10,414
|
|
6,471
|
|
Intangible
assets
|
307
|
|
334
|
|
360
|
|
Investments under
equity method
|
8,006
|
|
8,282
|
|
7,585
|
|
Other
investments
|
2,224
|
|
3,151
|
|
3,126
|
|
Long-term prepayments
and deposits
|
4,291
|
|
3,991
|
|
4,101
|
|
Restricted
cash
|
315
|
|
328
|
|
1,140
|
|
Total non-current
assets
|
29,067
|
|
26,500
|
|
22,783
|
|
TOTAL
ASSETS
|
101,463
|
|
108,301
|
|
102,307
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Short-term bank
loans
|
11,804
|
|
14,781
|
|
13,847
|
|
Accounts
payable
|
11,144
|
|
8,521
|
|
6,970
|
|
Amounts due to
related parties
|
1,105
|
|
1,324
|
|
1,177
|
|
Convertible
note-maturity within one year
|
55,668
|
|
9,000
|
|
4,000
|
|
Derivative
instrument-embedded conversion option
|
3,215
|
|
3,278
|
|
3,399
|
|
Accrued expenses and
other current liabilities
|
35,065
|
|
33,667
|
|
32,148
|
|
Total current
liabilities
|
118,001
|
|
70,571
|
|
61,541
|
|
Non-current
Liabilities:
|
|
|
|
|
|
|
Convertible
promissory notes - maturity over one year
|
-
|
|
46,448
|
|
51,019
|
|
Total non-current
liabilities
|
-
|
|
46,448
|
|
51,019
|
|
Total
liabilities
|
118,001
|
|
117,019
|
|
112,560
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common
shares
|
10
|
|
10
|
|
10
|
|
Additional paid-in
capital
|
350,735
|
|
350,693
|
|
344,083
|
|
Accumulated
deficit
|
(408,815)
|
|
(403,809)
|
|
(395,183)
|
|
Accumulated other
comprehensive income
|
37,740
|
|
39,898
|
|
39,580
|
|
Total VisionChina
Media Inc. shareholders' equity
|
(20,330)
|
|
(13,208)
|
|
(11,510)
|
|
Noncontrolling
interest
|
3,792
|
|
4,490
|
|
1,257
|
|
Total
deficit
|
(16,538)
|
|
(8,718)
|
|
(10,253)
|
|
TOTAL LIABILITIES
AND EQUITY
|
101,463
|
|
108,301
|
|
102,307
|
|
|
|
|
|
|
|
Note 1:
Information extracted from the audited consolidated financial
statements included in the Company's 2014 annual report on
Form 20-F filed with the Securities and Exchange Commission on
April 30, 2015 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
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Advertising
service revenue
|
23,016
|
|
22,160
|
|
29,569
|
|
Other
revenue
|
223
|
|
1,010
|
|
82
|
|
Total
revenues
|
23,239
|
|
23,170
|
|
29,651
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Advertising
service cost
|
(19,879)
|
|
(16,899)
|
|
(22,068)
|
|
Other
cost
|
(182)
|
|
(1,030)
|
|
(33)
|
|
Total cost of
revenues
|
(20,061)
|
|
(17,929)
|
|
(22,101)
|
|
Gross
profit
|
3,178
|
|
5,241
|
|
7,550
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing expenses
|
(3,782)
|
|
(3,378)
|
|
(4,504)
|
|
General and
administrative expenses
|
(2,583)
|
|
(1,384)
|
|
(3,324)
|
|
Research and
development expenses
|
(405)
|
|
(292)
|
|
-
|
|
Total operating
expenses
|
(6,770)
|
|
(5,054)
|
|
(7,828)
|
|
Share of profit from
equity method investees
|
70
|
|
308
|
|
163
|
|
Government
grant
|
12
|
|
45
|
|
438
|
|
Impairment loss of a
cost method investee
|
(808)
|
|
-
|
|
-
|
|
Other operating
expense
|
-
|
|
-
|
|
(1,832)
|
|
Operating
(loss)/profit
|
(4,318)
|
|
540
|
|
(1,509)
|
|
Interest
income
|
44
|
|
27
|
|
100
|
|
Interest
expense
|
(1,459)
|
|
(1,490)
|
|
(1,508)
|
|
Other
expenses
|
(34)
|
|
454
|
|
57
|
|
Fair value change
through profit and loss
|
63
|
|
-
|
|
-
|
|
Net loss before
income taxes
|
(5,704)
|
|
(469)
|
|
(2,860)
|
|
Income tax
|
-
|
|
-
|
|
(43)
|
|
Net
loss
|
(5,704)
|
|
(469)
|
|
(2,903)
|
|
Net loss attributable
to noncontrolling interest
|
698
|
|
315
|
|
36
|
|
Net loss
attributable to VisionChina Media Inc. shareholders
|
(5,006)
|
|
(154)
|
|
(2,867)
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
Basic
|
(0.05)
|
|
(0.00)
|
|
(0.03)
|
|
Diluted
|
(0.05)
|
|
(0.00)
|
|
(0.03)
|
|
|
|
|
|
|
|
Net loss per ADS
(1):
|
|
|
|
|
|
|
Basic
|
(0.98)
|
|
(0.03)
|
|
(0.56)
|
|
Diluted
|
(0.98)
|
|
(0.03)
|
|
(0.56)
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of net loss per
share:
|
|
|
|
|
|
Basic
|
102,121,144
|
|
102,121,144
|
|
101,572,004
|
|
Diluted
|
102,121,144
|
|
102,121,144
|
|
101,572,004
|
|
|
|
|
|
|
|
Weighted average
number of ADS used in computation of net loss per
ADS:
|
|
|
|
|
|
Basic
|
5,106,057
|
|
5,106,057
|
|
5,078,600
|
|
Diluted
|
5,106,057
|
|
5,106,057
|
|
5,078,600
|
|
|
|
|
|
|
|
Share-based
compensation expenses during the related periods included
in:
|
|
|
|
|
|
|
Cost of
revenues
|
(10)
|
|
(11)
|
|
(5)
|
|
Selling and
marketing expenses
|
(1)
|
|
(1)
|
|
(2)
|
|
General and
administrative expenses
|
(31)
|
|
(31)
|
|
(42)
|
|
Total
|
(42)
|
|
(43)
|
|
(49)
|
|
|
|
|
|
|
|
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)
|
(5,006)
|
|
(154)
|
|
(2,867)
|
|
Add back
share-based compensation expenses
|
42
|
|
43
|
|
49
|
|
Add back
contingent loss in connection with a litigation
|
-
|
|
-
|
|
-
|
|
Net loss
attributable to VisionChina Media Inc. shareholders
(Non-GAAP)
|
(4,964)
|
|
(111)
|
|
(2,818)
|
|
|
|
|
|
|
|
Note 1: ADS
amounts adjusted for a change in the ratio of the Company's
American Depositary Shares ("ADSs") to common shares ("Shares")
from 1:1 to 1:20
("Ratio Change"), effective as of December 12, 2012.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/visionchina-media-inc-announces-third-quarter-2015-results-300183385.html
SOURCE VisionChina Media Inc.
