SHANGHAI, China, March 23 /PRNewswire-Asia/ -- Focus Media Holding Limited
(Nasdaq: FMCN), China's largest digital media group, today announced its
unaudited financial results for the fourth quarter and full year ended
December 31, 2008.
Basis of Presentation
On December 9, 2008, Focus Media (the 'Company') announced the
restructuring of its CGEN in-store advertising network and the termination of
its remaining wireless advertising (interactive marketing) business.
Subsequently, on December 22, 2008, the Company announced the sale to SINA
Corporation of substantially all of the assets of its out-of-home digital
networks, including LCD display networks, Poster Frame networks and In-Store
networks. As a result of the above transactions, these lines of businesses
have been accounted as discontinued operations in accordance with US GAAP in
the financial statements that accompany this press release. Certain results
for the total company, however, have been provided to assist the readers in
understanding the overall results of the Company relative to the guidance for
the fourth quarter of 2008 that was provided by the Company on November 10,
2008. As such, the term 'Total Company' as used in this press release
includes both continuing and discontinued operations of the Company.
Highlights for Fourth Quarter 2008:
-- Total Company net revenue was $192.1 million, declining 15% from $224.8
million for the third quarter of 2008 and meeting the company's
previous guidance for the fourth quarter of 2008 of between $190
million and $200 million.
-- Net loss was $800.3 million or -$6.22 per fully diluted ADS, compared
to net income of $51.3 million for the third quarter of 2008 or $0.38
per fully diluted ADS.
-- Non-GAAP net income was $50.0 million or $0.39 per fully diluted ADS,
declining 30% from $71.4 million in the third quarter of 2008 or $0.53
per fully diluted ADS and below the Company's previous guidance for the
fourth quarter of 2008 of between $60 million and $61 million.
-- Continuing operations net revenue was $87.2 million and net loss from
continuing operations was $422.2 million; Non-GAAP net income from
continuing operations was $7.3 million.
-- Discontinued operations net revenue was $104.9 million and net loss
from discontinued operations was $378.1 million; Non-GAAP net income
from discontinued operations was $42.7 million.
Highlights for the Full Year 2008:
-- Total Company net revenue was $790.2 million for the full year 2008, as
compared to $506.6 million for the full year 2007.
-- Continuing operations net revenue was $369.6 million.
-- Non-GAAP net income was $221.9 million for the full year 2008, as
compared to $190.6 million for the full year 2007.
-- Net loss from continuing operations was $414.9 million.
-- Net loss from discontinued operations was $353.5 million.
-- Net loss was $768.5 million for the full year 2008, as compared to net
income of $144.4 million for full year 2007.
Jason Jiang, Chairman and Chief Executive Officer of Focus Media said,
'The fourth quarter 2008 was particularly challenging period to Focus Media.
During the quarter, we incurred significant non-cash restructuring and
impairment charges due to severe adverse changes in macro and micro business
environments. However, our core business has held relatively well. Though we
saw revenue in fourth quarter declined 15% to $192 million from $224.8 million
of third quarter 2008, we have significantly improved our account receivable
collection and as a result, our account receivable balance has dropped to
$278.8 million as of December 31, 2008 from $346.3 million as of September 30,
2008.'
Fourth Quarter and Full Year 2008 balance sheet results
-- Cash and cash equivalents for Total Company were $422.9 million as of
December 31, 2008, a 13% increase from $373.2 million as of September
30, 2008.
-- Cash and cash equivalents for continuing operations were $142.4 million
as of December 31, 2008.
-- Cash and cash equivalents for discontinued operations were $280.5
million as of December 31, 2008.
-- Account receivable for Total Company was $278.9 million as of December
31, 2008, a 19% decline from $346.3 million as of September 30, 2008,
mainly attributable to the improved accounts receivable collection and
disposal of CGEN business.
-- Account receivable for continuing operations was 135.3 million as of
December 31, 2008.
-- Account receivable for discontinued operations was 143.6 million as of
December 31, 2008.
To assist the readers in understanding the overall financial position of
Total Company, the summary of balance sheet results as of December 31, 2008
are listed as follows:
Discontinued
operations
Continuing (Asset Held for Total Company
operation Sale) (Non-GAAP)
Cash & Bank Balance 142,434 280,481 422,915
Account receivables,
net 135,270 143,582 278,852
Other current assets 62,821 42,982 105,803
Total Assets 466,099 1,066,195 1,532,294
Account payables (67,905) (16,621) (84,526)
Total current
liabilities (158,125) (158,281) (316,406)
Total liabilities (169,706) (160,240) (329,946)
Fourth Quarter 2008 financial results
For the fourth quarter of 2008, Total Company net revenue was $192.1
million, a 15% decline compared to $224.8 million for the third quarter of
2008.
Advertising revenue from LCD display network was $65.3 million for the
fourth quarter of 2008, an 18% decline from $79.6 million for the third
quarter of 2008.
Advertising revenue from our in-elevator poster frame network was $39.2
million for the fourth quarter of 2008, an 11% decline from $44.0 million for
the third quarter of 2008.
As of December 31, 2008, the total installed base of LCD displays and
digital frames in our commercial location network was 128,033 nationwide,
including 122,597 displays through our directly owned networks, and 5,436
displays through our regional distributors. The total number of non-digital
frames available for sale on our in-elevator poster frame network was 290,169
as of December 31, 2008.
