INVESTORS
NEW YORK, Nov. 13, 2014 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), a leading Video On Demand service provider in China delivering Hollywood movies to mobile and TV screens, today announced its financial results for the three- and nine-month periods ended September 30, 2014 (a full copy of its quarterly report on Form 10-Q will be posted at www.sec.gov). Chairman Shane McMahon, CEO Weicheng Liu and President and CFO Marc Urbach are hosting an investor update conference call today at 4:30 p.m. ET to discuss the Company's recent results. To join the webcast, please visit the 'Webcasts and Events' section of the YOD corporate website, http://corporate.yod.com/webcasts. Otherwise, the toll-free dial-in is: 877/407-3107; international callers should dial: 201/493-6796.
Shane McMahon, Chairman of YOU On Demand, commented, "As evidenced from our strong Q3 revenues which grew 253% quarter-over-quarter, YOU On Demand is beginning to show the fruit of a tremendous amount of planning and hard work. In China, as the appetite for premium content and the breadth of distribution channels continues to grow, YOU On Demand is now firmly entrenched and well-positioned to capitalize."
YOU On Demand CEO Weicheng Liu, stated, "We are very pleased with the traction we are now witnessing when it comes to revenue growth and consumer uptake. It is directly attributed to both the tremendous effort of the YOU On Demand team as well as the growing Chinese middle-class consumers who are now showing a very convincing desire to pay for premium content that is delivered to their mobile and TV screens with the highest quality. Our service strategy remains the same: to offer a unique and differentiated service to an audience of China's most passionate movie fans. Through organic growth and continued expansion of distribution partnerships, we believe YOU On Demand is decisively executing on its plan to be the number one destination for movie fans across mobile and TV screens."
YOU On Demand President & CFO Marc Urbach commented, "YOU On Demand had a strong start to the second half of 2014 as we intensified our commitment to delivering high quality entertainment across a spectrum of consumer devices and screens. There are many opportunities that lie ahead and we expect to best leverage these by maintaining our fiscally prudent strategy for the long-term benefit of the Company's shareholders."
2014 Q3 Operating Results
Revenues for Q3 were approximately $645,000, an increase of 253% over Q2 2014 and an increase of 577% over Q3 in the prior year.
Our gross loss for the quarter amounted to $228,000, down from $617,000 in the same period in the prior year.
The loss from operations of $2.3 million for the quarter was down from a $2.6 million loss from operations in the comparable 2013 period. The net loss attributable to YOU On Demand shareholders for the Q3 2014 quarter amounted to $1.9 million, compared to $3.2 million income in the prior year quarter, which included $5.6 million income from discontinued operations.
The loss per share on a fully diluted basis for Q3 2014 was $0.09 compared to $0.14 income per share in the year-ago Q3 which included $0.36 income per share from discontinued operations.
Cash and cash equivalents increased from $3.8 million at December 31, 2013, to $13.0 million at September 30, 2014.
Guidance
For full-year fiscal 2014, YOU On Demand now expects total revenue to be in the range of $1.7 million - $2.0 million. The change in guidance is directly attributable to longer-than-anticipated finalization of distribution agreements and therefore certain revenues being delayed to 2015.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in risk factors set forth from time to time the Company's periodic reports, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
About YOU On Demand Holdings, Inc. (http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment company delivering premium content, including leading Hollywood and China-produced movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The Company has secured alliances with leading global media operators and content developers. YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.
CONTACT:
Jason Finkelstein
YOU On Demand
212-206-1216
jason.finkelstein@yod.com
@youondemand
Financial Tables Follow
|
YOU On Demand Holdings, Inc., Its Subsidiaries and Variable Interest Entity |
|||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
Three months ended |
Nine months Ended |
||||||
|
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
||||
|
Revenue |
644,891 |
95,295 |
965,268 |
146,852 |
|||
|
Cost of revenue |
873,025 |
712,327 |
2,606,142 |
2,350,931 |
|||
|
Gross loss |
(228,134) |
(617,032) |
(1,640,874) |
(2,204,079) |
|||
|
Operating expenses: |
|||||||
|
Selling, general and administrative expense |
1,861,053 |
1,726,967 |
5,772,350 |
5,856,484 |
|||
|
Professional fees |
114,271 |
78,379 |
375,986 |
474,114 |
|||
|
Depreciation and amortization |
124,936 |
154,719 |
414,486 |
620,946 |
|||
|
Impairments of long-lived assets |
- |
- |
- |
311,249 |
|||
|
Total operating expenses |
2,100,260 |
1,960,065 |
6,562,822 |
7,262,793 |
|||
|
Loss from operations |
(2,328,394) |
(2,577,097) |
(8,203,696) |
(9,466,872) |
|||
|
Interest & other income/(expenses) |
|||||||
|
Interest expense, net |
(29,151) |
(29,818) |
(2,346,210) |
(88,882) |
|||
|
Change in fair value of warrant liabilities |
281,537 |
(6,840) |
(655,849) |
(37,130) |
|||
|
Change in fair value of contingent consideration |
(47,634) |
(15,649) |
(160,766) |
(99,343) |
|||
|
Gain/(loss) on investment in unconsolidated entities |
(6,389) |
8,592 |
(16,646) |
7,873 |
|||
|
Gain on sale of a subsidiary |
- |
- |
755,426 |
- |
|||
|
Loss on dissolution of a variable interest entity |
- |
- |
(27,463) |
- |
|||
|
Others |
(14,783) |
(11,827) |
(82,464) |
58,769 |
|||
|
Net loss before income tax and non- controlling interest |
(2,144,814) |
(2,632,639) |
(10,737,668) |
(9,625,585) |
|||
|
Income tax benefit |
28,812 |
21,168 |
84,249 |
82,129 |
|||
|
Loss from continuing operations |
(2,116,002) |
(2,611,471) |
(10,653,419) |
(9,543,456) |
|||
|
Net income from discontinued operations |
- |
5,589,872 |
- |
5,255,474 |
|||
|
Net income/(loss) |
(2,116,002) |
2,978,401 |
(10,653,419) |
(4,287,982) |
|||
|
Net loss attributable to non-controlling interests |
169,364 |
193,512 |
696,708 |
834,685 |
|||
|
Net income/(loss) attributable to YOU On Demand shareholders |
(1,946,638) |
3,171,913 |
(9,956,711) |
(3,453,297) |
|||
|
Dividend on preferred stock |
- |
(1,029,829) |
(16,402,161) |
(1,029,829) |
|||
|
Net income/(loss) attributable to YOU On Demand common shareholders |
(1,946,638) |
2,142,084 |
(26,358,872) |
(4,483,126) |
|||
|
Basic and diluted loss per share: |
|||||||
|
Loss from continuing operations |
$ (0.09) |
(0.22) |
$ (1.45) |
$ (0.65) |
|||
|
Income from discontinued operations |
- |
0.36 |
- |
0.35 |
|||
|
Basic and diluted income/(loss) per share |
$ (0.09) |
$ 0.14 |
$ (1.45) |
$ (0.30) |
|||
|
Weighted average shares outstanding: |
|||||||
|
Basic and diluted |
22,012,166 |
15,553,097 |
18,203,124 |
15,034,841 |
|||
|
YOU On Demand Holdings, Inc., Its Subsidiaries and Variable Interest Entity |
||||||
|
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
September 30, |
December 31, |
|||||
|
ASSETS |
2014 |
2013 |
||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
$ 13,045,215 |
$ 3,822,889 |
||||
|
Accounts receivable, net |
636,684 |
175,211 |
||||
|
Licensed content, current |
1,000,928 |
428,322 |
||||
|
Prepaid expenses |
292,708 |
330,013 |
||||
|
Debt issuance costs, net |
- |
128,879 |
||||
|
Other current assets |
9,066 |
48,928 |
||||
|
Total current assets |
14,984,601 |
4,934,242 |
||||
|
Property and equipment, net |
376,330 |
499,858 |
||||
|
Licensed content, non-current |
145,801 |
162,646 |
||||
|
Intangible assets, net |
2,386,419 |
2,621,527 |
||||
|
Goodwill |
6,105,478 |
6,105,478 |
||||
|
Investment in unconsolidated entities |
861,194 |
673,567 |
||||
|
Other non-current assets |
367,409 |
- |
||||
|
Total assets |
$ 25,227,232 |
$ 14,997,318 |
||||
|
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY |
||||||
|
Current liabilities: |
||||||
|
Accounts payable |
173,613 |
656,545 |
||||
|
Deferred revenue |
142,144 |
68,969 |
||||
|
Accrued expenses and other liabilities |
1,745,126 |
1,075,944 |
||||
|
Deferred license fees |
1,205,427 |
1,200,764 |
||||
|
Contingent purchase price consideration liability |
- |
578,744 |
||||
|
Convertible promissory note |
3,000,000 |
3,000,000 |
||||
|
Warrant liabilities |
619,660 |
1,344,440 |
||||
|
Total current liabilities |
6,885,970 |
7,925,406 |
||||
|
Deferred income tax liability |
41,560 |
125,809 |
||||
|
Convertible promissory note |
- |
2,000,000 |
||||
|
Total liabilities |
6,927,530 |
10,051,215 |
||||
|
Commitments and contingencies |
||||||
|
Convertible redeemable preferred stock: |
||||||
|
Series A - 7,000,000 shares issued and outstanding, liquidation preference of |
1,261,995 |
1,261,995 |
||||
|
Series C – 0 and 87,500 shares issued and outstanding, liquidation preference of $0 |
- |
219,754 |
||||
|
Series D 4% - 0 and 2,285,714 shares issued and outstanding, liquidation |
- |
4,000,000 |
||||
|
Equity: |
||||||
|
Series E Preferred Stock, $0.001 par value; 16,500,000 shares authorized, |
7,560 |
- |
||||
|
Common stock, $0.001 par value; 1,500,000,000 shares authorized, 23,598,430 and |
23,598 |
15,794 |
||||
|
Additional paid-in capital |
112,764,950 |
67,417,025 |
||||
|
Accumulated deficit |
(92,293,390) |
(65,856,053) |
||||
|
Accumulated other comprehensive loss |
(1,381,701) |
(715,090) |
||||
|
Total YOU On Demand equity |
19,121,017 |
861,676 |
||||
|
Non-controlling interest |
(2,083,310) |
(1,397,322) |
||||
|
Total equity |
17,037,707 |
(535,646) |
||||
|
Total liabilities, convertible redeemable preferred stock and equity |
$ 25,227,232 |
$ 14,997,318 |
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SOURCE YOU On Demand Holdings, Inc.