NEW YORK, May 14, 2015 /PRNewswire/ -- YOU On Demand
Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or
"YOD"), "), a leading Video On Demand ("VOD") service provider in
China delivering Hollywood movies and premium content to mobile
and TV screens, announced today its Q1 2015 operating results for
the period ended March 31, 2015 (a
full copy of the Company's quarterly report on Form 10-Q is also
being posted at www.sec.gov).
Conference Call: Chairman Shane
McMahon, CEO Weicheng Liu and
VP of Finance Grace He will host a
conference call at 8:00 a.m. ET today.
To join the webcast, please visit the 'Webcasts and Events'
section of the YOD corporate website, http://corporate.yod.com.
Otherwise, the toll-free dial-in is: 877/407-3107; international
callers should dial: 201/493-6796.
YOD Q1 2015 Operating Results
Revenues in Q1 were approximately $1,028,000, translating to year-over-year
and quarter-over-quarter growth of
647% and 3%, respectively. The slowdown in
quarter-over-quarter growth as compared to Q4 2014 over Q3 2014 was
primarily attributed to seasonality surrounding the Chinese New Year and timing of revenue
recognition, which will push certain revenues into Q2.
Gross loss for Q1 was approximately $15,000, as compared to a gross loss of
$738,000 during the same period
2014. This improvement was due to the increased revenue
related to the VOD business. YOD's cost of revenue is
primarily comprised of content licensing fees and, to a lesser
extent, costs associated with direct delivery of our content
services such as content preparation fees and government censorship
clearance costs.
Total operating expenses increased 43% in Q1 2015 vs the same
quarter last year primarily from
increases in marketing, promotion and technology expenses
due to the growth in our business
and the development of new products and services. In Q1 2015, we
also incurred additional severance costs as we consolidated and
streamlined our operations.
Net loss was $2,919,000 for Q1
compared to $7,452,000 in the
comparable 2014 period, a 61% improvement.
The loss per share on a fully diluted basis for Q1 2015 was
$0.12 compared to a $1.48 loss per share in the same period 2014.
As of March 31, 2015, we had cash
and cash equivalents of approximately $8.4
million and total current assets of approximately
$11.9 million.
YOU On Demand CEO Weicheng Liu,
stated, "Along with another strong quarter of revenues, we are
pleased to announce today an expanded deal with long time OTT
partner, Future TV, which will see YOU On Demand's YOU Hollywood
movie service now available on Samsung Smart TV's, in China.
In addition, over the last quarter, YOU On Demand has entered into
3 new IPTV platforms in the provinces of Hebei, Jiangxi and Sichuan. We expect revenue
from those regions to be realized in the coming quarters and are
pleased with the continued growth and expansion of our YOU
Hollywood on IPTV services in these regions. These
developments, coupled with the YOU On Demand's cost-cutting
measures, increased focus on product development and marketing, and
execution on our plan has put YOU On Demand in a strong position
for future growth."
About YOU On Demand Holdings, Inc.
(http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD) is a leading subscription and
transactional Video On Demand service provider delivering premium
content to customers across China
through mobile and TV screens. 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 and
Twentieth Century Fox Television Distribution, 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.
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 the Company's periodic
reports 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.
CONTACT:
Jason Finkelstein
YOU On Demand
212-206-1216
jason.finkelstein@yod.com
@youondemand
Financial Tables Follow
YOU On Demand
Holdings, Inc., and Its Subsidiaries
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
|
|
Revenue
|
$ 1,027,928
|
|
$
137,681
|
Cost of
revenue
|
1,042,999
|
|
875,938
|
Gross
loss
|
(15,071)
|
|
(738,257)
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling, general and
administrative expenses
|
2,448,301
|
|
1,640,640
|
|
Professional
fees
|
288,718
|
|
185,484
|
|
Depreciation and
amortization
|
89,743
|
|
149,960
|
Total operating
expense
|
2,826,763
|
|
1,976,084
|
|
|
|
|
|
Loss from
operations
|
(2,841,834)
|
|
(2,714,341)
|
|
|
|
|
|
Interest & other
income (expense):
|
|
|
|
|
Interest expense,
net
|
(28,323)
|
|
(2,288,738)
|
|
Change in fair value
of warrant liabilities
|
(15,295)
|
|
(2,439,018)
|
|
Change in fair value
of contingent consideration
|
-
|
|
(703,126)
|
|
Loss on long-term
equity investments
|
(32,403)
|
|
(4,908)
|
|
Gain from disposal of
consolidated entities
|
-
|
|
727,963
|
|
Other
|
(9,767)
|
|
(52,666)
|
|
|
|
|
|
Net
loss
|
|
|
|
|
before income
taxes and non-controlling interests
|
(2,927,622)
|
|
(7,474,834)
|
Income tax
benefit
|
8,612
|
|
22,942
|
Net
loss
|
(2,919,010)
|
|
(7,451,892)
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
120,221
|
|
234,784
|
|
|
|
|
|
Net loss attributable
to YOU On Demand shareholders
|
(2,798,789)
|
|
(7,217,108)
|
Dividends and deemed
dividends on preferred stock
|
-
|
|
(16,402,161)
|
|
|
|
|
|
Net loss
attributable to YOU on Demand common shareholders
|
$ (2,798,789)
|
|
$ (23,619,269)
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
(0.12)
|
|
$
(1.48)
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic and
diluted
|
23,815,720
|
|
15,931,394
|
|
|
|
|
|
YOU On Demand Holdings, Inc., and
Its Subsidiaries
UNAUDITED CONSOLIDATED BALANCE
SHEET
|
|
|
|
|
|
March 31,
|
|
December
31,
|
ASSETS
|
2015
|
|
2014
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
8,395,492
|
|
$
10,812,371
|
Accounts receivable,
net
|
1,775,563
|
|
1,091,076
|
Licensed content,
current
|
1,180,509
|
|
1,041,609
|
Prepaid
expenses
|
551,464
|
|
196,474
|
Other current
assets
|
31,750
|
|
22,442
|
Total current
assets
|
11,934,778
|
|
13,163,972
|
|
|
|
|
Property and
equipment, net
|
289,887
|
|
320,671
|
Licensed content,
non-current
|
30,567
|
|
35,648
|
Intangible assets,
net
|
2,280,987
|
|
2,320,103
|
Goodwill
|
6,648,911
|
|
6,648,911
|
Long-term equity
investments
|
818,225
|
|
850,054
|
Other non-current
assets
|
365,267
|
|
365,006
|
Total
assets
|
$
22,368,622
|
|
$
23,704,365
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
30,329
|
|
110,814
|
Deferred
revenue
|
129,873
|
|
13,431
|
Accrued expenses and
other liabilities
|
3,073,209
|
|
2,046,783
|
Accrued license
fees
|
607,571
|
|
348,007
|
Convertible promissory
note
|
3,000,000
|
|
3,000,000
|
Warrant
liabilities
|
600,345
|
|
585,050
|
Total current
liabilities
|
7,441,327
|
|
6,104,085
|
Deferred income tax
liability
|
355,960
|
|
364,572
|
Total
liabilities
|
7,797,287
|
|
6,468,657
|
Commitments
and contingencies
|
|
|
|
Convertible
redeemable preferred stock:
|
|
|
|
Series A - 7,000,000
shares issued and outstanding, liquidation preference of
$3,500,000 at March 31, 2015 and December
31, 2014, respectively
|
1,261,995
|
|
1,261,995
|
Equity:
|
|
|
|
Series E Preferred
Stock, $0.001 par value; 16,500,000 shares authorized,
7,326,426 and 7,365,283 shares issued and
outstanding, liquidation preference of $12,821,246 and $12,889,250 at March 31, 2015 and
December 31, 2014, respectively
|
7,326
|
|
7,365
|
Common stock, $0.001
par value; 1,500,000,000 shares authorized, 23,832,559
and 23,793,702 shares issued
and outstanding at March 31, 2015 and December 31,
2014, respectively
|
23,833
|
|
23,794
|
Additional paid-in
capital
|
96,600,948
|
|
96,347,272
|
Accumulated
deficit
|
(81,155,356)
|
|
(78,356,567)
|
Accumulated other
comprehensive loss
|
(63,847)
|
|
(66,032)
|
Total YOU On
Demand equity
|
15,412,904
|
|
17,955,832
|
Non-controlling
interest
|
(2,103,564)
|
|
(1,982,119)
|
Total
equity
|
13,309,340
|
|
15,973,713
|
Total
liabilities, convertible redeemable preferred stock
and equity
|
$
22,368,622
|
|
$
23,704,365
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/you-on-demand-reports-q1-2015-results-300081870.html
SOURCE YOU On Demand Holdings, Inc.