BEIJING, May 12 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance
Media Limited ("XFMedia" or "the Company"; Nasdaq: XFML), a leading
media group in China, today announced its unaudited financial
results for the first quarter ended March 31, 2008. First Quarter
2008 Highlights -- Net revenue for the first quarter exceeded
mid-point guidance by 33.5% to $36.7 million -- Strong y-o-y
performance in adjusted EBITDA (non-GAAP)(1) growing by 70% to $3.1
million -- Adjusted net income(1) per diluted ADS for the first
quarter of 2008 was $0.02 -- Continued expansion in Broadcast,
Print, and Outdoor, our higher margin businesses -- Full year 2008
net revenue forecast increased to range from $195 million to $205
million and full year 2008 adjusted net income per diluted ADS
estimated to range from $0.31 to $0.33 -- Second quarter 2008 net
revenue estimated to range from $48 million to $50 million and
adjusted net income per diluted ADS to range from $0.07 to $0.09
"We are pleased to report a great start to the year," said Ms Fredy
Bush, XFMedia's Chief Executive Officer, "with strong
year-over-year growth for the first quarter and overall results
ahead of management forecasts. We focused on expanding our higher
margin businesses such as Broadcast, Print and Outdoor. Integration
has also been proceeding smoothly, with Production integrated into
the Broadcast Group and Research integrated into the Advertising
Group, giving us three business groups from five before. Current
ranking for the NMTV satellite station reached a high of 23rd out
of 35 provincial satellite stations in April 2008, boosted by the
growing popularity of our Fortune China TV programs and the launch
of 'The Scene', a daily lifestyle program for the upwardly mobile."
"In line with our promised expansion in Print, we announced the
launch of Investor Journal, a weekly newspaper aimed at informing
the growing retail investor market. We also formed the Xinhua Media
Entertainment subsidiary and partnered with China Film Group to
focus on Sino-US film development, production, and pre-production.
Capitalizing on these opportunities, we continue to solidify our
market position as a leading media group in China," Ms Bush added.
(1) In this quarter, the definitions of adjusted EBITDA and
adjusted net income have been revised to better reflect the
Company's underlying financial and operational performance. Please
refer to Chart 8 for detailed calculations of adjusted EBITDA and
adjusted net income. First Quarter 2008 Financial Results The
following is a summary of our financial results for the first
quarter of 2008: Chart 1: Summary of financial results 3 months 3
months 3 months ended ended ended 08Q1 vs 08Q1 vs Mar 31, Mar 31,
Dec 31, 07Q1 07Q4 In US millions 2008 2007 2007 growth % growth %
Net revenue 36.7 16.7 48.5 120% -24% Adjusted EBITDA(1) 3.1 1.8 9.9
70% -69% Net income (loss)(2) (8.3) 12.6 4.2 N/A N/A Net income per
ADS - diluted(4) $(0.13) $0.23 $0.06 N/A N/A Adjusted net
income(1),(3) 1.4 1.9 8.6 -23% -83% Adjusted net income per ADS -
diluted(4) $0.02 $0.04 $0.12 -50% -83% (1) In this quarter, the
definitions of adjusted EBITDA and adjusted net income have been
revised to better reflect the Company's underlying financial and
operational performance. Please refer to Chart 8 for detailed
calculation of adjusted EBITDA and adjusted net income. (2) The
year-on-year decrease in net income is primarily due to a one-time
tax gain of $12.3 million in the first quarter of 2007, and for the
first quarter of 2008 increased share-based compensation expense
and costs for Sarbanes-Oxley compliance. The sequential decrease in
net income is primarily due to seasonality, share-based
compensation expense, and costs for Sarbanes-Oxley compliance for
the first quarter of 2008. (3) The year-on-year decrease in
adjusted net income is primarily due to increased tax provisions
and costs for Sarbanes-Oxley compliance for the first quarter of
2008. The sequential decrease in adjusted net income is primarily
due to seasonality and costs for Sarbanes-Oxley compliance for the
first quarter of 2008. (4) Please refer to Chart 9 for weighted
average number of ADS on a diluted basis. Net Revenue Net revenue
for the first quarter of 2008 was $36.7 million, up 120% year-
over-year from $16.7 million in the first quarter of 2007 or down
24% sequentially from $48.5 million in the fourth quarter of 2007.
The primary reason for quarter-on-quarter sequential decline is the
seasonality of the media industry, which historically is impacted
in the first quarter by the Chinese New Year holiday. This year's
first quarter slowdown in advertising was further impacted by the
National People's Congress of China held in March. Net Revenue by
type and business group The following is a summary of net revenue
by business group reconciled to types of revenue provided in the
accompanying consolidated financial statements for the first
quarter of 2008. Please note that as of first quarter 2008, our
business groups have been integrated from five (Advertising,
Broadcast, Print, Production, and Research) to three, with
Production integrated into Broadcast and Research integrated into
Advertising. Chart 2: Revenue breakdown by type and business group
In US millions Advertising(1) Broadcast(2) Print Total Net revenue:
Advertising services 16.9 3.4 0.8 21.1 Content production -- 0.6 --
0.6 Advertising sales 4.6 6.8 3.4 14.8 Publishing services -- --
0.2 0.2 Total net revenue: 21.5 10.8 4.4 36.7 (1) In the first
quarter of 2008, the former Research Group was integrated into the
Advertising Group. (2) In the first quarter of 2008, the former
Production Group was integrated into the Broadcast Group.
Advertising Group Net revenue for the Advertising Group for the
first quarter of 2008 was $21.5 million, up 159% year-over-year
from $8.3 million in the first quarter of 2007. Net revenue for the
first quarter of 2008 was down 29% sequentially from $30.1 million
in the fourth quarter of 2007, primarily due to seasonality. Chart
3: Revenue breakdown of the Advertising Group 3 months 3 months 3
months 3 months ended ended ended ended In US Mar 31, Mar 31,
Growth Mar 31, Dec 31, Growth millions 2008 2007 % 2008 2007 %
Advertising(1): Television -- 1.0 -100% -- 4.6 -100% Print/Online
6.4 4.8 35% 6.4 12.8 -50% Outdoor/Other 6.5 1.5 313% 6.5 6.0 6% BTL
Marketing 7.4 -- -- 7.4 5.5 35% Research(2) 1.2 1.0 28% 1.2 1.2 5%
Subtotal: 21.5 8.3 159% 21.5 30.1 -29% (1) In the first quarter of
2008, the former Television business of the Advertising Group was
migrated into the Broadcast Group. (2) In the first quarter of
2008, the former Research Group was integrated into the Advertising
Group. The 2007 comparative numbers are adjusted accordingly.
Broadcast Group Net revenue for the Broadcast Group for the first
quarter of 2008 was $10.8 million, up 116% year-over-year from $5.0
million in the first quarter of 2007 or down 17% sequentially from
$12.9 million in the fourth quarter of 2007, primarily due to
seasonality. Chart 4: Revenue breakdown of the Broadcast Group 3
months 3 months 3 months 3 months ended ended ended ended In US Mar
31, Mar 31, Growth Mar 31, Dec 31, Growth millions 2008 2007 % 2008
2007 % Broadcast: Television(1) 5.8 3.8 52% 5.8 3.7 55% Radio 1.6
0.4 283% 1.6 2.1 -24% Mobile 2.8 -- -- 2.8 5.3 -47% Production(2)
0.6 0.8 -26% 0.6 1.8 -68% Subtotal: 10.8 5.0 116% 10.8 12.9 -17%
(1) In the first quarter of 2008, the former Television business of
the Advertising Group was migrated into the Broadcast Group. (2) In
the first quarter of 2008, the former Production Group was
integrated into the Broadcast Group. The 2007 comparative numbers
are adjusted accordingly. Print Group Net revenue for the Print
Group for the first quarter of 2008 was $4.4 million, up 31%
year-over-year from $3.4 million in the first quarter of 2007 or
down 18% sequentially from $5.4 million in the fourth quarter of
2007, primarily due to seasonality. Chart 5: Revenue breakdown of
the Print Group 3 months 3 months 3 months 3 months ended ended
ended ended In US Mar 31, Mar 31, Growth Mar 31, Dec 31, Growth
millions 2008 2007 % 2008 2007 % Print: Newspaper 2.3 1.9 21% 2.3
2.6 -11% Magazines 2.1 1.5 44% 2.1 2.8 -25% Subtotal: 4.4 3.4 31%
4.4 5.4 -18% Gross Profit Gross profit for the first quarter of
2008 was $13.1 million, up 161% year-over-year from $5.0 million in
the first quarter of 2007 or down 29% sequentially from $18.6
million in the fourth quarter of 2007. Adjusted gross profit
(non-GAAP), defined as gross profit before amortization of
intangible assets from acquisitions, for the first quarter of 2008
was $15.1 million, up 147% year-over-year from $6.1 million in the
first quarter of 2007 or down 26% sequentially from $20.5 million
in the fourth quarter of 2007. We provide adjusted gross profit to
break out the amortization of intangible assets from acquisitions
charged within cost of revenue. Chart 6 provides a breakdown of
adjusted gross profit by business group. Chart 6: Reconciliation
for adjusted gross profit by business group In US millions
Advertising Broadcast Print Total Gross Profit 6.1 4.0 3.0 13.1
Amortization of intangible assets from acquisitions(1) 0.4 1.4 0.2
2.0 Adjusted gross profit 6.5 5.4 3.2 15.1 (1) Amortization of
intangible assets from acquisitions includes assets such as client
database, brand names, and production inventory. Operating Expenses
Operating expenses for the first quarter of 2008 were $19.3
million, up 194% year-over-year from $6.6 million in the first
quarter of 2007 or up 54% sequentially from $12.5 million in the
fourth quarter of 2007. The year-on-year and sequential increases
are mainly due to an increase in selling and marketing expenses in
line with increased revenue, increased share based compensation
expense, and costs for Sarbanes-Oxley compliance. Total operating
expenses were composed of selling and marketing expenses and
general and administrative expenses. Selling and marketing expenses
for the first quarter of 2008 were $5.1 million, up 225%
year-over-year from $1.6 million in the first quarter of 2007 or
down 11% sequentially from $5.8 million in the fourth quarter of
2007. General and administrative expenses for the first quarter of
2008 were $14.1 million, up 183% year-over-year from $5.0 million
in the first quarter of 2007 or up 110% sequentially from $6.7
million in the fourth quarter of 2007. Included in general and
administrative expenses was $4.9 million of share based
compensation expenses. Adjusted EBITDA (non-GAAP) Adjusted EBITDA
(non-GAAP), defined as earnings before one time items, other
income, interest income and expense, taxes, depreciation,
amortization of intangible assets from acquisitions and share-based
compensation expenses, for the first quarter of 2008 was $3.1
million, up 70% year-over-year from $1.8 million in the first
quarter of 2007 or down 69% sequentially from $9.9 million in the
fourth quarter of 2007. The primary reasons for sequential decline
in adjusted EBITDA are seasonality and the Sarbanes-Oxley
compliance process. For a reconciliation from income from
operations to adjusted EBITDA, refer to Chart 8. Chart 7: Adjusted
EBITDA by business group In US millions Advertising Broadcast Print
Total Adjusted EBITDA by business group 2.9 3.1 1.7 7.7 Less: net
head office expenses (4.6) Adjusted EBITDA 3.1 Net Income and
Adjusted Net Income (non-GAAP) Net loss for the first quarter of
2008 was $8.3 million, down by $20.9 million year-over-year from
net income of $12.6 million in the first quarter of 2007 or down by
$12.5 million sequentially from net income of $4.2 million in the
fourth quarter of 2007. The net income of $12.6 million for first
quarter of 2007 included a one-time tax gain of $12.3 million. The
primary reasons for the year-on-year decline are the one-time tax
gain, increased share based compensation expense, and higher costs
to support Sarbanes-Oxley compliance. The primary reasons for the
sequential decline in net income are seasonality, increased share
based compensation expense, and costs for Sarbanes-Oxley compliance
for the first quarter of 2008. Adjusted net income (non-GAAP),
defined as net income before one-time items, amortization of
intangible assets from acquisitions, share-based compensation
expenses and imputed interest, for the first quarter of 2008 was
$1.4 million, down 23% year-over-year from $1.9 million in the
first quarter of 2007 or down 83% sequentially from $8.6 million in
the fourth quarter of 2007. The primary reasons for year-over-year
decline in adjusted net income are increased tax provisions and
costs for Sarbanes-Oxley compliance. The primary reasons for
sequential decline in adjusted net income are seasonality and costs
for Sarbanes-Oxley compliance. For a reconciliation from net income
to adjusted net income, please refer to Chart 8. Outlook for second
quarter and full year of 2008 XFMedia estimates its net revenue for
the second quarter of 2008 will range from $48 million to $50
million. Second quarter adjusted net income per ADS is estimated to
range from $0.07 to $0.09 per diluted ADS based on 81.8 million
total ADS equivalent average shares outstanding. XFMedia is raising
its estimate of net revenue for full year 2008 to range from $195
million to $205 million from previously forecasted range of $190
million to $200 million. Full year adjusted net income per ADS for
2008 is estimated to range from $0.31 to $0.33 per diluted ADS
based on 82.7 million total ADS equivalent average shares
outstanding. XFMedia also expects that for the full year 2008,
share-based compensation expense will be approximately $10 million,
amortization of intangible assets from acquisitions approximately
$13 million, and imputed interest approximately $4 million. This
forecast reflects XFMedia's current and preliminary view, which is
subject to change. Other Corporate Developments Over the first
quarter of 2008, the Company continued to implement its share
buyback program, buying back $2.9 million for 1,017,118 ADSs. These
shares will be canceled in accordance with Cayman company law. We
also issued $30 million in convertible preferred shares to Yucaipa
in February, increasing Yucaipa's total ownership of our shares
from around 6% to 12% assuming full conversion. The convertible
preferred shares are subject to a one year lock-up period before
they can be converted into common shares or ADSs at a conversion
price of $6.00 per ADS. The increased investment from a
world-class, long-term investor like Yucaipa is a vote of
confidence in both the fundamentals and growth prospects of our
Company. Conference Call Information Following the earnings
announcement, XFMedia's senior management will host a conference
call on May 12, 2008 at 8:00pm (New York) / May 13, 2008 at 8:00am
(Beijing) to review the results and discuss recent business
activities. Interested parties may dial into the conference call
at: (US) +1 800 510 0178 or +1 617 614 3450 (UK) +44 207 365 8426
(Asia Pacific) +852 3002 1672 Passcode: XFML A telephone replay
will be available shortly after the call for one week at: (US Toll
Free) +1 888 286 8010 (International) +1 617 801 6888 Passcode:
68168556 A real-time webcast and replay will be also available at:
http://www.xinhuafinancemedia.com/earnings-webcast About XFMedia
Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is a leading media
group in China with nationwide access to the upwardly mobile
demographic. Through its synergistic business groups, Advertising,
Broadcast, and Print, XFMedia offers a total solution empowering
clients at every stage of the media process and connecting them
with their target audience. Its unique platform covers a wide range
of media assets, including television, radio, newspaper, magazine,
outdoor, online and other media assets. Headquartered in Beijing,
the company has offices and affiliates in major cities of China
including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For
more information, please visit http://www.xinhuafinancemedia.com/ .
Safe Harbor This announcement contains forward-looking statements.
These statements are made under the "safe harbor" provisions of 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 outlook for second quarter and full year 2008 and quotations
from management in this announcement, as well as XFMedia's
strategic and operational plans, contain forward-looking
statements. XFMedia may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about XFMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward- looking
statement, including but not limited to the following: our growth
strategies; our future business development, results of operations
and financial condition; our ability to attract and retain
customers; competition in the Chinese advertising and media market;
changes in our revenues and certain cost or expense items as a
percentage of our revenues; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; the expected growth of the
Chinese advertising and media market; and Chinese governmental
policies relating to advertising and media. Further information
regarding these and other risks is included in our registration
statement on Form F-1, as amended, filed with the Securities and
Exchange Commission. XFMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. Non-GAAP Financial Measures To supplement XFMedia's
consolidated financial results under U.S. GAAP, XFMedia also
provides the following non-GAAP financial measures: adjusted gross
profit, adjusted EBITDA and adjusted net income. XFMedia believes
that these non-GAAP financial measures provide investors with
another method for assessing XFMedia's underlying operational and
financial performance. These non-GAAP financial measures are not
intended to be considered in isolation or as a substitute for the
financial results under U.S. GAAP. For more information on these
non-GAAP financial measures, please refer to Chart 8 of this
release. To provide investors with a better understanding of our
underlying operational and financial performance, starting from
this quarter, XFMedia has adopted the measure "adjusted gross
profit", defined as gross profit excluding amortization of
intangible assets from acquisitions, and has changed the
methodology of presenting "adjusted EBITDA", by defining adjusted
EBITDA as earnings before one time items, other income, interest
income and expense, taxes, depreciation, amortization of intangible
assets from acquisitions and share-based compensation expenses, and
"adjusted net income", by defining adjusted net income as net
income before amortization of intangible assets from acquisitions,
imputed interest, share-based compensation expenses and one-time
items. XFMedia believes these non-GAAP financial measures are
useful to management and investors in assessing the performance of
the Company and assists management in its financial and operational
decision making. A limitation of using non-GAAP measures which
exclude share-based compensation expenses is that share-based
compensation expenses have been and will continue to be a
significant recurring expense in our business. A limitation of
using non-GAAP adjusted gross profit, adjusted EBITDA and adjusted
net income is that they do not include all items that impact our
net income for the period. Management compensates for these
limitations by providing specific information regarding the GAAP
amounts excluded from each non-GAAP measure. The accompanying
tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP
financial measures. The following is a reconciliation of our
non-GAAP financial results: Chart 8: Reconciliation of non-GAAP
financial results 3 months 3 months 3 months ended ended ended Mar
31, Mar 31, Dec 31, In US millions 2008 2007 2007 Income (loss)
from operations (6.2) 0.7 6.0 Interest income 0.6 0.5 1.5 Other
income, net 0.3 - 0.8 Depreciation 0.8 0.4 0.6 Amortization of
intangible assets from acquisitions 3.6 1.6 2.7 Amortization of
intangible assets from long-term contracts 1.2 1.5 1.2 Share-based
compensation expenses 4.9 1.4 0.6 Adjusted EBITDA (2007 definition)
5.2 6.1 13.4 Interest income (0.6) (0.5) (1.5) Other income, net
(0.3) -- (0.8) One time items -- (2.3) -- Amortization of
intangible assets from long-term contracts (1.2) (1.5) (1.2)
Adjusted EBITDA (2008 definition) 3.1 1.8 9.9 Net income (loss)
(8.3) 12.6 4.2 One time items(1) -- (15.5) -- Amortization of
intangible assets from acquisitions 3.6 1.6 2.7 Amortization of
intangible assets from long-term contracts 1.2 1.5 1.2 Share-based
compensation expenses 4.9 1.4 0.6 Imputed interest 1.2 1.8 1.1
Adjusted net income (2007 definition) 2.6 3.4 9.8 Amortization of
intangible assets from long-term contracts (1.2) (1.5) (1.2)
Adjusted net income (2008 definition) 1.4 1.9 8.6 (1) The one time
items of $15.5 million in the first quarter of 2007 represent a
$12.3 million one-time tax gain due to deferred tax effect arising
from the reduction of income tax rate from 33% to 25%, which became
effective on January 1, 2008, for all domestic companies and
foreign invested enterprises in the People's Republic of China;
$2.3 million reimbursement of IPO-related expenses; and $1.0
million other income. Net income and adjusted net income per ADS
and per share are as follows: Chart 9: Net income and adjusted net
income per ADS and per share 3 months 3 months 3 months ended ended
ended Mar 31, 2008 Mar 31, 2007 Dec 31, 2007 Net income (loss) per
ADS - basic $(0.13) $0.27 $0.06 Net income (loss) per ADS - diluted
$(0.13) $0.23 $0.06 Weighted average number of ADS - basic 65.6
million 41.0 million 64.8 million Weighted average number of ADS -
diluted 65.6 million 57.0 million 72.1 million Adjusted net income
per ADS - basic $0.02 $0.01 $0.13 Adjusted net income per ADS -
diluted $0.02 $0.04 $0.12 Weighted average number of ADS - basic
65.6 million 41.0 million 64.8 million Weighted average number of
ADS - diluted 72.3 million 57.0 million 72.1 million For more
information, please contact: Media Contact Ms. Joy Tsang Tel:
+86-21-6113-5999 Email: IR Contact Ms. Jennifer Chan Lyman Tel:
+86-21-6113-5960 Email: Condensed Consolidated Balance Sheets (In
U.S. dollars) Mar 31,2008 Dec 31,2007 Unaudited Unaudited Assets
Current assets: Cash 69,544,776 44,436,087 Restricted cash (Note 1)
46,080,000 47,252,191 Principal protected note (Note 2) 25,047,691
-- Accounts receivable (Note 3) 45,151,426 45,706,766 Prepaid
program expenses 5,488,147 5,389,250 Other current assets
19,843,783 16,272,798 Total current assets 211,155,823 159,057,092
Content production deposit and cost, net 7,857,353 8,855,896
Property and equipment, net 9,129,706 9,191,959 Intangible assets,
net (Note 4) 228,891,685 233,505,913 Goodwill 245,767,174
180,125,488 Investment 500,000 500,000 Principal protected note
(Note 2) -- 24,909,929 Deposits for acquisition of subsidiaries --
25,634,000 Other long-term asset 7,332,528 9,021,936 Total assets
710,634,269 650,802,213 Liabilities, mezzanine equity and
shareholders' equity Current liabilities: Bank borrowings
36,213,749 33,780,188 Bank overdrafts 499,342 960,157 Other current
liabilities 79,536,992 40,542,213 Total current liabilities
116,250,083 75,282,558 Deferred tax liabilities 36,909,649
37,741,579 Long term payables, non-current portion 61,561,836
69,081,763 Total liabilities 214,721,568 182,105,900 Minority
Interests 2,038,406 2,060,745 Mezzanine equity: Series B
convertible preferred shares (par value $0.001; 300,000 shares
authorized, issued and outstanding as of March 31, 2008) 29,450,000
-- Shareholders' equity: Class A common shares and nonvested shares
(par value $0.001; 143,822,874 as of December 31, 2007 and as of
March 31, 2008 shares authorized; 90,061,269 as of December 31,
2007 and as of March 31, 2008 shares issued and outstanding) 90,061
90,061 Class B common shares (par value $0.001; 50,054,619 as of
December 31, 2007 and as of March 31, 2008 shares authorized;
50,054,618 as of December 31, 2007 and March 31, 2008 shares issued
and outstanding) 7,442 7,442 Additional paid-in capital 443,784,465
439,516,974 Retained earnings 15,423,398 23,903,560 Accumulated
other comprehensive income 5,118,929 3,117,531 Total shareholders'
equity 464,424,295 466,635,568 Total liabilities, mezzanine equity
and shareholders' equity 710,634,269 650,802,213 Condensed
Consolidated Statements of Operations 3 months 3 months 3 months
ended ended ended (in U.S. Dollars) Mar 31, 2008 Mar 31, 2007 Dec
31, 2007 Unaudited Unaudited Unaudited Net revenue: Advertising
services 21,176,603 9,074,956 32,427,419 Content production 573,453
779,715 1,776,291 Advertising sales 14,738,927 6,622,955 13,834,490
Publishing services 201,224 202,430 436,503 Total net revenue
36,690,207 16,680,056 48,474,703 Cost of revenue: Advertising
services 15,697,961 7,326,871 22,137,944 Content production 442,057
266,850 593,496 Advertising sales 7,152,328 3,905,913 6,922,148
Publishing services 294,292 150,924 238,480 Total cost of revenue
23,586,638 11,650,558 29,892,068 Operating expenses: Selling and
distribution 5,140,842 1,579,456 5,794,457 General and
administrative 14,137,279 4,988,225 6,740,401 Total operating
expenses 19,278,121 6,567,681 12,534,858 Other operating income
(Note 5) -- 2,261,788 -- Income (loss) from operations (6,174,552)
723,605 6,047,777 Other income (expenses) (Note 6) (810,563)
(716,367) (660,440) Income (loss) before provision for income taxes
and minority interest (6,985,115) 7,238 5,387,337 Provision for
income taxes (Note 7) 1,339,884 (12,915,380) 719,289 Net income
(loss) before minority interest (8,324,999) 12,922,618 4,668,048
Minority interest (44,829) 332,884 510,928 Net income (loss)
(8,280,170) 12,589,734 4,157,120 Dividend on convertible preferred
shares 200,000 -- -- Dividend declared on redeemable convertible
preferred shares -- 1,338,333 -- Net income (loss) attributable to
holders of common shares (8,480,170) 11,251,401 4,157,120 Net
income (loss) per share: Basic - Common Shares (0.065) 0.137 0.032
Basic - American Depositary Shares (0.130) 0.274 0.064 Diluted -
Common Shares (0.065) 0.113 0.029 Diluted - American Depositary
Shares (0.130) 0.226 0.058 Condensed Consolidated Statements of
Cash Flows 3 months 3 months 3 months ended ended ended Mar 31, Mar
31, Dec 31, (in U.S. Dollars) 2008 2007 2007 Unaudited Unaudited
Unaudited Net cash provided by/(used in) operating activities
(1,554,573) (7,460,850) 14,696,170 Net cash provided by/(used in)
investing activities (1,908,350) (14,248,357) (43,368,652) Net cash
provided by/(used in) financing activities 26,418,367 161,567,987
(3,165,011) Effect of exchange rate changes 2,153,245 (280,453)
922,837 Net increase/(decrease) in cash 25,108,689 139,578,327
(30,914,656) Cash, as at beginning of the period 44,436,087
36,353,547 75,350,743 Cash, as at end of the period 69,544,776
175,931,874 44,436,087 Notes to Financial Information 1) Restricted
cash Restricted cash is US dollar cash deposits pledged for the RMB
loan facilities granted by banks for RMB working capital purposes.
2) Principal protected note Principal protected note of $25.0
million represents investment on 100% Principal Protection Barrier
Notes due on January 30, 2009. 3) Accounts receivables and debtors
turnover Debtors turnover for the fourth quarter of 2007 and first
quarter of 2008 were 87 days and 107 days respectively. Our
business groups generally granted 90 days to 180 days average
credit period to major customers, which is in line with the
industry practices in the PRC. 4) Intangible assets Net book value
for intangible assets as of March 31, 2008 was $228.9 million. It
mainly represents the fair value of the long term advertising
agreements for the Broadcast and Print Group. The net book value of
the intangible assets were primarily composed of $97.2 million
advertising license agreement for our TV business, $71.5 million
exclusive advertising agreement for our newspaper business, and
$7.8 million exclusive advertising agreements we entered for radio
advertising operations in Shanghai, Beijing and Guangdong. We are
in the process of obtaining third-party valuations of certain
identifiable intangible assets for the acquisitions we completed in
2007 and hence the net book value for intangible assets is
preliminary and subject to revision once we complete the valuation
exercise. 5) Other operating income Other operating income of $2.3
million in the first quarter of 2007 represents reimbursement of
IPO related expenses by Bank of New York. Those expenses, all of
which had been recorded in the 2006 income statement as operating
expenses because they were not considered to be directly related to
the sale of securities, related primarily to audit fees and fees
paid to consultants during the listing process. 6) Other income
(expenses) Other income (expenses) includes net interest income
(expense) and net other income (expense). 7) Provision for income
taxes Provision for income taxes includes deferred tax credits of
$1.0 million and $0.8 million in the fourth quarter of 2007 and
first quarter of 2008. DATASOURCE: Xinhua Finance Media Limited
CONTACT: Media Contact - Ms Joy Tsang, +86-21-6113-5999, or ; IR
Contact - Ms Jennifer Chan Lyman, +86-21-6113-5960, or Web site:
http://www.xinhuafinancemedia.com/
Copyright