FUZHOU, China, May 11, 2012 /PRNewswire-Asia-FirstCall/ --
China Yida Holding Company (Nasdaq: CNYD) ("China Yida" or the
"Company"), a diversified tourism and entertainment enterprise in
China, today announced financial
results for the first quarter ended March
31, 2012.
First Quarter 2012 Results
- Total net revenue was $7.7
million, a decrease of 34.4% compared to $11.8 million in the
year-ago period
- Net revenue from the tourism business was $1.5 million, a decrease of 19.8% year over year,
with a gross margin of 17.5%
- Net revenue from the media business was $6.2 million, a decrease of 37.2% year over year,
with a gross margin of 74.8%
- Gross profit was $4.9 million, a
decrease of 40.6% compared to $8.3
million in the year-ago period
- Operating income was $2.5
million, a decline of 59.5% compared to $6.1 million in 2011.
- Net income attributable to China Yida Holding Company was
$1.2 million, a decrease of 70.5%
compared to $4.0 million in the
year-ago period
- Fully diluted EPS was $0.06 per
share, compared to $0.20 in the
year-ago period.
"In the first quarter of 2012, we continue to face challenges in
our tourism and media businesses. However, we are confident
that our business model is sound and we remain committed to the
dynamic tourism market in China,"
commented Dr. Chen Minhua, Chairman and Chief Executive Officer of
China Yida. "Although road access issues continue to hinder
visitor traffic to Great Golden Lake, we have forged ahead and plan
to develop guest cottages that will accommodate overnight guests at
Yunding Park, which has also benefited from enhanced marketing
resulting in much improved tourist traffic. We have also
developed a new pricing strategy at the Hua'An Tulou cluster to
counter competitive pressures. We expect an increase in
tourist traffic to all of our destinations as we enter the warm
weather tourist season."
"Our media segment continued to feel the impact of restrictions
imposed by domestic media authorities," Dr. Chen continued.
"Despite the continued volatility of our media segment, our focused
growth strategy remains the development of unique and attractive
tourist destinations to meet the growing domestic demand for
tourism in China. With the
addition of three new properties in development, we foresee a
strategic mix of six operating properties with the potential to
generate a diversified income stream that will enhance shareholder
value in the long run," concluded Dr. Chen.
First Quarter 2012 results
Total consolidated net revenue for the Company's two business
segments, Tourism and Media, was $7.7
million in the first quarter of 2012, a decrease of 34.4% as
compared to $11.8 million in the
year-ago quarter. A review of each business segment follows.
Tourism Business
Net revenue from the tourism business was $1.5 million, a decrease of 19.8% as compared to
$1.9 million in net revenue in the
first quarter of 2011. The decrease was primarily due to a decrease
in the number of tourists visiting Hua'an Tulou amid strong
competition from similar-type nearby Tulou tourism
destinations.
Gross margin from the tourism business was 17.5% for the first
quarter of 2012, compared to 43.1% in the year-ago quarter. The
year-over-year decrease was due to higher depreciation expenses
attributable to the addition of property and equipment associated
with Phase II projects at Yunding Park to the balance sheet.
The total number of visitors that entered the Great Golden Lake
during the first quarter of 2012 was approximated 37,000, compared
to 53,000 in the same period of last year. The site generated
approximately $0.5 million in revenue
in the first quarter, down 3.1% from the comparable year-ago
quarter. The Hua'An Tulou tourist destination received
approximately 38,000 visitors, compared to 55,000 visitors in the
comparable year-ago quarter, and remained at approximately the same
attendance level as occurred in the fourth quarter of 2011. The
year-over-year decrease was mainly due to tough market competition
from two nearby Tulou clusters in Fujian
Province. Hua'An Tulou generated approximately $0.5 million in revenue in the first quarter of
2012, a decrease of 42.2% from the comparable year-ago quarter.
Yunding Recreational Park attracted 23,000 visitors in the first
quarter of 2012, a strong recovery from 12,000 visitors in the
first quarter of 2011 and a marked increase from the 14,000
visitors in the fourth quarter of 2011. The site generated
approximately $0.5 million in revenue
in the first quarter of 2012, double the amount generated in the
comparable year-ago quarter, and also improved sequentially from
$0.3 million generated in the fourth
quarter of 2011. The increase in visitors and revenue at Yunding
for the quarter is primarily attributable to enhanced marketing
efforts of the Company's travel agency.
Media Business
Net revenue from the media business in the first quarter of 2012
was $6.2 million, a decrease of 37.2%
from the $9.9 million posted in the
comparable period a year ago. Fujian Education Television Channel
("FETV") experienced a 9.3% fall in revenue in the quarter year
over year to an estimated $6.1
million due to actions by domestic media authorities
restricting the broadcasting manner and content of TV advertising.
Revenue from the Company's train media business was an estimated
$140,000 for the first quarter of
2012, as compared to $1.8 million for
the first quarter of 2011, as a majority of advertising clients
terminated their purchases due to the absence of an automatic
broadcasting and monitoring system.
Gross margin for the media business was 74.8% for the first
quarter of 2012, as compared to 75.3% in the comparable year-ago
quarter. The slight decrease in gross margin was primarily
attributable to the fall-off in revenue generated from the railway
media broadcasts as well as the increase in contracting costs
associated with FETV's commercial airtime.
Consolidated Operating Results
Gross profit for China Yida's consolidated operations was
$4.9 million in the first quarter of
2012, representing a gross profit margin of 63.4%, compared to
gross profit of $8.3 million and a
gross margin of 70.1% for the comparable period of 2011.
Total operating expenses increased by 13.7% to $2.4 million in the first quarter of 2012,
compared with $2.1 million in the
first quarter of 2011. This increase was primarily attributable to
a 32.3% jump in selling expenses, which increased from $0.9 million to $1.1
million, due to higher marketing and operating expenses at
Yunding Park compared to the same period last year. Operating
income decreased by 59.5% to $2.5
million, compared with $6.1
million in the year ago quarter.
Net income attributable to China Yida Holding Company for the
first quarter of 2012 was $1.2
million, or $0.06 per diluted
share, as compared with $4.0 million,
or $0.20 per diluted share, for the
first quarter of 2011.
Financial Condition
As of March 31, 2012, the Company
had $4.1 million in cash and cash
equivalents. Working capital was $4.7
million with a current ratio of 1.4. As of March 31, 2012, the Company had total debt of
$36.5 million. Shareholders'
equity was $160.2 million at the end
of the first quarter of 2012 as compared to $157.9 million at the end of 2011.
China Yida generated $1.8 million
in cash flow from operating activities in the first quarter of 2012
and spent $7.7 million on investing
activities, of which $1.4 million
constituted additions to intangible assets including land use
rights. The Company received $6.1
million in proceeds from long term bank loans in the first
quarter of 2012 to fund the development of its tourism
destinations.
Business Update
As indicated previously, due to strict regulations on certain
types of TV advertising, Management expects that FETV's advertising
revenue may continue to decline further in the quarters ahead.
Beginning on January 1, 2012,
the State Administration of Radio Film and Television (SARFT)
disallowed any commercial advertisements that are inserted in the
midst of certain TV programming with the result that ad time is now
minimized and only able to be inserted at a program's end.
The decrease in tourism segment revenue was primarily due to the
revenue decrease at the Hua'An Tulou tourism destination,
attributable to strong competition among the homogeneous
tourism destinations, Nanjing Tulou Cluster and Yongding Tulou
Cluster. However, the Company has increased its ticket
discounts at Hua'An Tulou and hopes to increase visitor
traffic. The Company plans upon utilizing its travel agency
to promote the site as well as offer more promotions in
Xiamen City.
The natural view and tourism facilities at the Great Golden Lake
destination have almost recovered, though tourist traffic has not
yet returned to normal levels. As the local government is currently
rebuilding the road to Shangqing River, tourists who seek to visit
Great Golden Lake must now travel on a rougher, more demanding
road. Therefore, the tourist traffic to Great Golden Lake is likely
to be constrained when it is anticipated that the road construction
will be completed in 2013.
Since its grand opening on September 28,
2010, Yunding Recreational Park had admitted over one
million visitors as of March 31,
2012. The recent quarter saw an increase in visitors to
Yunding for the quarter attributable to enhanced marketing efforts
of the Company's travel agency. Nonetheless, tourist traffic
has been much lower than that the site's designed capacity due to
the poor condition of roads that connect to the site. The new
expressway connecting Fuzhou to
Yongtai Town being built by the local government is expected to be
completed by the end of 2012. Management will continue to
ramp up its marketing efforts as well as develop second-stage
entertainment attractions so as to directly engage tourists. The
Company recently designed a guest cottage prototype for overnight
stays and now plans for the development of guest cottages at
Yunding in the second quarter.
As of March 31, 2012, China Yida
has made significant progress in the development of its three new
tourism destinations in Anhui and
Jiangxi Provinces, the Ming Dynasty Entertainment World in Bengbu
City, Anhui province, the China
Yang-sheng (Nourishing Life) Paradise in Zhangshu City,
Jiangxi province, and the City of
Caves in Fenyi City, Jiangxi
province. The development and construction of these new
tourist destinations are in line with the Company's schedule. In
the first quarter of 2012, the Company invested approximately
$5.0 million in the acquisition of
land use rights and approximately $2.7
million in the construction of tourism facilities.
As of March 31, 2012, the total
estimated costs in contract progressing to complete China
Yang-sheng (Nourishing Life) Paradise are approximately
$14.3 million, of which the Company
has completed and paid for approximately $13.4 million. The Company believes that the
remaining balance will be completed and paid for by the end of
2012.
As of March 31, 2012, the total
estimated costs in contract progressing to complete City of Caves
are approximately $12.9 million, of
which the Company has completed and paid for approximately
$12.2 million. The Company believes
that the remaining balance will be completed and paid for by the
end of 2012.
Management believes that it can finance all of its ongoing
capital expenditures from cash on hand, cash from operations and
bank loans secured against its land bank. Entering 2012, new
construction and development was adversely affected by
more-than-normal rainy days. However, Management will undertake its
best efforts to complete Phase I construction of these new projects
and commence operation of the new tourist destinations by the end
of 2012.
Conference Call
China Yida will conduct a conference call at 9:00 a.m. Eastern Time (ET) on Friday, May 11, 2012, to discuss its financial
results for the quarter ended March 31,
2012. To participate in the live conference call, please
dial any of the following numbers five to ten minutes prior to the
scheduled conference call time: 866-395-5819. International callers
may dial +1-706-643-6986. The Conference ID for this call is
78092385. If you are unable to participate in the call at this
time, a replay will be available for two weeks starting on
Friday, May 11, 2012 at 12:00 p.m. ET. To access the replay, dial
855-859-2056 or 404-537-3406, international callers dial
+1-800-585-8367. The Conference ID is 78092385.
About China Yida
China Yida is a leading tourism and media enterprise focused on
China's fast-growing leisure industry and headquartered in
Fuzhou City, Fujian province of China. The Company
provides tourism management services and specializes in the
development, management and operation of natural, cultural and
historic scenic sites.
China Yida currently operates the Great Golden Lake tourist
destination (Global Geopark), Hua'An Tulou tourist destination
(World Culture Heritage) and China Yunding Park (National
Park). China Yida is also developing three additional tourism
projects, Ming Dynasty Entertainment World, China Yang-sheng
(Nourishing Life) Tourism Project and the City of Caves.
The Company's media business provides operations management
services including content and advertising management for the
Fujian Education Television Station ("FETV"), and "Journey through
China on the Train", an advertisement-embedded travel
program.
For further information, please contact the Company directly, or
visit its Web site at http://www.yidacn.net.
Forward-Looking Statements
Certain statements in this press release that are not historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
may be identified by the use of words such as "anticipate,
"believe," "expect," "future," "may," "will," "would," "should,"
"plan," "projected," "intend," and similar expressions. Such
forward-looking statements, involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of China Yida Holding Co., Inc. (the
"Company") to be materially different from those expressed or
implied by such forward-looking statements. The Company's future
operating results are dependent upon many factors, including but
not limited to: (i) the Company's ability to obtain sufficient
capital or a strategic business arrangement; (ii) the Company's
ability to build and maintain the management and human resources
and infrastructure necessary to support the anticipated growth of
its business; (iii) competitive factors and developments beyond the
Company's control; and (iv) other risk factors discussed in the
Company's periodic filings with the Securities and Exchange
Commission, which are available for review at www.sec.gov.
FINANCIAL TABLES FOLLOW
CHINA YIDA HOLDING
CO. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
For The Three Months
Ended March 31,
|
|
|
2012
|
|
2011
|
Net
revenue
|
|
|
|
|
Advertisement
|
$
|
6,194,519
|
$
|
9,868,374
|
Tourism
|
|
1,536,190
|
|
1,915,103
|
|
|
|
|
|
Total net
revenue
|
|
7,730,709
|
|
11,783,477
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
Advertisement
|
|
1,559,000
|
|
2,434,822
|
Tourism
|
|
1,267,593
|
|
1,089,401
|
|
|
|
|
|
Total cost of
revenue
|
|
2,826,593
|
|
3,524,223
|
|
|
|
|
|
Gross
profit
|
|
4,904,116
|
|
8,259,254
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
|
1,142,965
|
|
863,891
|
General and
administrative expenses
|
|
1,279,748
|
|
1,266,610
|
|
|
|
|
|
Total operating
expenses
|
|
2,422,713
|
|
2,130,501
|
|
|
|
|
|
Income from
operations
|
|
2,481,403
|
|
6,128,753
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
Other expense,
net
|
|
(38,709)
|
|
(5,343)
|
Interest
income
|
|
6,714
|
|
22,132
|
Interest
expense
|
|
(64,260)
|
|
(192,400)
|
|
|
|
|
|
Total other
expenses
|
|
(96,255)
|
|
(175,611)
|
|
|
|
|
|
Income before income
tax and non-controlling interest
|
|
2,385,148
|
|
5,953,142
|
|
|
|
|
|
Less: Provision for
income tax
|
|
1,286,188
|
|
2,005,690
|
|
|
|
|
|
Net
income
|
|
1,098,960
|
|
3,947,452
|
|
|
|
|
|
Net loss attributed
to non-controlling interest
|
|
67,303
|
|
11,634
|
|
|
|
|
|
Net income
attributable to China Yida Holding Co.
|
$
|
1,166,263
|
$
|
3,959,086
|
|
|
|
|
|
Net
income
|
$
|
1,098,960
|
$
|
3,947,452
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
Foreign currency
translation gain
|
|
1,150,317
|
|
851,519
|
|
|
|
|
|
Comprehensive
income
|
|
2,249,277
|
|
4,798,971
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
|
22,666
|
|
48,640
|
|
|
|
|
|
Comprehensive income
attributable to China Yida Holding Co.
|
$
|
2,271,943
|
$
|
4,847,611
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
-
Basic
|
$
|
0.06
|
$
|
0.20
|
-
Diluted
|
$
|
0.06
|
$
|
0.20
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
-
Basic
|
|
19,551,785
|
|
19,551,785
|
-
Diluted
|
|
19,551,785
|
|
19,895,190
|
CHINA YIDA HOLDING
CO. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2012
|
|
2011
|
|
|
(UNAUDITED)
|
|
(AUDITED)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
4,141,437
|
$
|
5,684,847
|
Accounts
receivable
|
|
220,804
|
|
129,849
|
Other
receivables, net
|
|
6,018,197
|
|
4,940,389
|
Advances and
prepayments
|
|
4,928,102
|
|
1,881,427
|
Prepayment -
current portion
|
|
317,529
|
|
207,117
|
Total current assets
|
|
15,626,069
|
|
12,843,629
|
|
|
|
|
|
Property and
equipment, net
|
|
110,500,842
|
|
110,593,580
|
Construction in
progress
|
|
28,688,017
|
|
25,964,029
|
Intangible
assets, net
|
|
42,952,853
|
|
32,355,010
|
Long-term
prepayments
|
|
4,315,544
|
|
12,758,763
|
Deferred tax
assets
|
|
-
|
|
104,078
|
Total assets
|
$
|
202,083,325
|
$
|
194,619,089
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
loans
|
$
|
950,540
|
$
|
943,619
|
Long-term debt,
current portion
|
|
5,452,932
|
|
3,761,894
|
Accounts
payable
|
|
73,660
|
|
91,385
|
Current
obligation under airtime rights commitment
|
|
2,585,469
|
|
2,359,169
|
Accrued expenses
and other payables
|
|
603,665
|
|
638,175
|
Taxes
payable
|
|
1,237,049
|
|
1,223,528
|
Deferred tax
liabilities - current
|
|
-
|
|
67,644
|
Total current liabilities
|
|
10,903,315
|
|
9,085,414
|
|
|
|
|
|
Long-term
obligation under airtime rights commitment
|
|
800,523
|
|
1,548,928
|
Long-term
debt
|
|
30,073,508
|
|
26,040,732
|
Deferred tax
liabilities - non-current
|
|
94,437
|
|
-
|
Total liabilities
|
|
41,871,783
|
|
36,675,074
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Preferred stock ($0.001
par value, 10,000,000 shares authorized, none issued and
outstanding)
|
|
-
|
|
-
|
Common stock ($0.0001
par value, 100,000,000 shares authorized, 19,551,785 shares
issued
and
outstanding as of March 31, 2012 and December 31, 2011,
respectively)
|
|
1,955
|
|
1,955
|
Additional paid in
capital
|
|
49,147,415
|
|
49,129,165
|
Accumulated other
comprehensive income
|
|
13,589,796
|
|
12,484,116
|
Retained
earnings
|
|
88,881,445
|
|
87,715,182
|
Statutory
reserve
|
|
2,549,330
|
|
2,549,330
|
Total China Yida
Holding, Co. Stockholders' equity
|
|
154,169,941
|
|
151,879,748
|
Non-controlling
interest
|
|
6,041,601
|
|
6,064,267
|
Total
equity
|
|
160,211,542
|
|
157,944,015
|
Total liabilities and
equity
|
$
|
202,083,325
|
$
|
194,619,089
|
|
CHINA YIDA HOLDING
CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
|
|
|
|
For The Three Months
Ended March 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
1,098,960
|
$
|
3,947,452
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
1,035,896
|
|
841,189
|
|
Amortization
|
|
616,069
|
|
930,245
|
|
Stock based
compensation
|
|
18,250
|
|
362,331
|
|
Deferred
tax expense
|
|
130,871
|
|
23,178
|
|
Amortization of financing costs
|
|
49,340
|
|
0
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(90,210)
|
|
(12,091)
|
|
Other
receivables, net
|
|
(1,043,985)
|
|
(67,279)
|
|
Advances
and prepayments
|
|
25,882
|
|
(149,580)
|
|
Accounts
payable
|
|
(18,438)
|
|
(1,111,406)
|
|
Accrued
expenses and other payables
|
|
(39,282)
|
|
(120,841)
|
|
Taxes
payable
|
|
4,556
|
|
(38,923)
|
|
Net cash
provided by operating
activities
|
|
1,787,909
|
|
4,604,275
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to
property and equipment
|
|
(129,857)
|
|
(60,407)
|
|
Additions to
construction in progress
|
|
(2,539,415)
|
|
(50,583)
|
|
Additions to
intangible asset
|
|
(1,441,611)
|
|
0
|
|
Increase in
refundable deposit - land use rights
|
|
(3,065,788)
|
|
0
|
|
Increase in
long-term prepayments for acquisition of property, equipment and
land use rights
|
(485,074)
|
|
(444,690)
|
|
Net cash used
in investing activities
|
|
(7,661,745)
|
|
(555,680)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Repayment of
obligation under airtime rights commitment
|
|
(552,047)
|
|
(439,667)
|
|
Payment of
deferred financing costs
|
|
(675,813)
|
|
0
|
|
Proceeds from
long-term loans
|
|
6,113,440
|
|
10,623,122
|
|
Repayment of
long-term loans
|
|
(595,465)
|
|
0
|
|
Net cash
provided by financing
activities
|
|
4,290,115
|
|
10,183,455
|
|
|
|
|
|
|
EFFECT OF
EXCHANGE RATE CHANGES ON CASH
|
|
40,311
|
|
78,952
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(1,543,410)
|
|
14,311,002
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
5,684,847
|
|
7,146,684
|
CASH AND CASH
EQUIVALENTS, ENDING OF PERIOD
|
$
|
4,141,437
|
$
|
21,457,686
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
|
Non-cash investing
activities:
|
|
|
|
|
|
Transfer from advances and prepayments to intangible
assets
|
$
|
9,558,997
|
$
|
0
|
|
|
|
|
|
|
|
Cash paid during
the period for:
|
|
|
|
|
|
Income tax
|
$
|
1,183,552
|
$
|
2,063,288
|
|
Interest
|
$
|
610,903
|
$
|
192,400
|
The notes in the Company's 2012 10-Q are an integral part of
these consolidated financial statements.
Contact:
China Yida Holding
Jocelyn Chen
Phone: +86 591 28082230
Email: ir@yidacn.net
CCG Investor Relations
Crocker Coulson, President
Phone: + (1) 646-213-1915
Email: Crocker.Coulson@ccgir.com
SOURCE China Yida Holding Company