BEIJING, Nov. 29, 2013 /PRNewswire/ -- Charm
Communications Inc. (NASDAQ: CHRM) ("Charm" or the "Company"), a
leading advertising agency in China, today announced its unaudited financial
results for the third quarter ended September 30, 2013.
Third Quarter 2013 Highlights
- Turnover decreased 8.2% year over year to
$198.8 million in the third quarter
of 2013
- Revenues declined 16.7% year over year to
$40.7 million in the third quarter of
2013
- Revenues for Charm's advertising agency
business declined 17.3% year over year to $11.3 million in the third quarter of 2013
- Revenues for Charm's media investment management
business declined 18.6% year over year to $27.7 million in the third quarter of 2013
- Gross profit declined 7.1% year over year to
$13.4 million in the third quarter of
2013
- Net loss was $0.6 million
in the third quarter of 2013, compared to net income of
$0.1 million in the year-ago
period
- Non-GAAP net income, which excludes share-based
compensation expenses and amortization of intangible assets, was
$0.5 million in the third quarter of
2013, compared to non-GAAP net income of $0.8 million in the year-ago period.
"Due to a sudden drop in television ratings for some of the
media inventories we had previously underwritten, our media
investment management business faced considerable challenges in the
third quarter," said Mr. He Dang, Charm's founder, chairman and
chief executive officer. "In order to balance our risk-adjusted
return, we will continue to reposition our Shangxing Media brand
from a media inventory seller to a media service agency."
"In light of the current dynamics of China's advertising industry, we will also
continue to focus on strengthening our core competencies and
improving profitability. We have made solid progress in building
our integrated service capabilities through key client wins and by
increasing the scale of our multimedia trading platform. In our
agency business, we are experiencing lower revenue extraction rates
at the investment phase, but we will remain vigilant regarding our
cost controls and credit management," added Mr. Dang.
Third Quarter 2013 Results
Turnover (non-GAAP)
US$ mm
|
3Q13
|
3Q12
|
2Q13
|
Y-o-Y %
|
Q-o-Q%
|
Total turnover
(non-GAAP)
|
$198.8
|
$216.5
|
$201.6
|
-8.2%
|
-1.4%
|
Advertising
agency
|
$171.1
|
$182.5
|
$172.0
|
-6.2%
|
-0.5%
|
Media investment
management
|
$27.7
|
$34.1
|
$29.6
|
-18.6%
|
-6.1%
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
The Company uses turnover (non-GAAP), defined as total customer
advertising spending placed through or with Charm, to reflect the
scale of its business.
The 8.2% year-over-year decrease in total turnover was
mainly due to losses related to one of the Company's larger agency
clients of Vizeum, the joint venture between Charm and Aegis. Total
turnover was relatively flat compared to the second quarter of
2013. The slight 1.4% quarter-over quarter decrease in total
turnover was mainly due to the decrease in billings in our
principal business.
The 6.2% year-over-year decrease in the advertising agency
business ("agency business") turnover was mainly due to a decrease
in media spending related to the aforementioned Vizeum client.
Agency business turnover was relatively flat compared to the second
quarter of 2013.
The revenue extraction rate, which is defined as revenue divided
by turnover, was 6.6% for the agency business, compared to 7.5% for
the third quarter of 2012 and 7.1% for the second quarter of 2013.
The quarter-over-quarter decrease in the revenue extraction rate
was mainly due to lower extraction rates associated with new client
wins. The year-over-year decrease in the revenue extraction rate
reflected strong demand for content marketing associated with our
sports and entertainment products in the third quarter of 2012.
The 18.6% year-over-year decrease in turnover (equivalent
to GAAP revenue) for the Company's media investment management
business ("principal media business"), which operates under the
Shangxing Media brand, was mainly due to lower revenue derived from
CCTV-2 and BTV-Sports as a result of lower television ratings. The
6.1% quarter-over-quarter decrease in turnover in the principal
media business was mainly due to lower revenues as a result of
lower television ratings for the media inventories the Company
had previously underwritten.
Revenues
US$ mm
|
3Q13
|
3Q12
|
2Q13
|
Y-o-Y %
|
Q-o-Q%
|
Total
revenues
|
$40.7
|
$48.8
|
$42.9
|
-16.7%
|
-5.1%
|
Advertising
agency
|
$11.3
|
$13.6
|
$12.2
|
-17.3%
|
-7.3%
|
Media investment
management
|
$27.7
|
$34.1
|
$29.6
|
-18.6%
|
-6.1%
|
Branding and identity
services
|
$1.6
|
$1.1
|
$1.1
|
45.8%
|
46.8%
|
The changes in the Company's agency business and principal media
business revenues were consistent with the changes in turnover and,
regarding the agency business revenues, consistent with changes in
the extraction rate. The increases in branding and identity
services revenues were primarily due to an overall increase in
client demand for the Company's creative services.
Gross Profit
US$ mm
|
3Q13
|
3Q12
|
2Q13
|
Y-o-Y %
|
Q-o-Q%
|
Cost of
revenues
|
$27.3
|
$34.5
|
$27.8
|
-20.8%
|
-1.6%
|
Gross
profit
|
$13.4
|
$14.4
|
$15.1
|
-7.1%
|
-11.5%
|
Gross
margin
|
32.8%
|
29.4%
|
35.2%
|
|
|
The year-over-year decrease in the Company's cost of revenues
was in line with the decrease in total revenues over the same
period. The Company's cost of revenues was in line with those of
the year-ago period. The decrease in gross profit was mainly a
result of the decrease in revenues.
Operating Profit (Loss)
US$ mm
|
3Q13
|
3Q12
|
2Q13
|
Y-o-Y %
|
Q-o-Q%
|
Total operating
expenses
|
$14.0
|
$14.8
|
$13.5
|
-5.1%
|
4.1%
|
Selling and
marketing
|
$9.7
|
$9.4
|
$9.0
|
2.8%
|
7.3%
|
General and
administrative
|
$4.4
|
$5.4
|
$4.5
|
-19.1%
|
-2.2%
|
Operating profit
(loss)
|
-$0.5
|
-$0.2
|
$1.7
|
-161.1%
|
-129.6%
|
The Company's selling and marketing expenses declined slightly
compared to the year-ago period. The 7.3% quarter-over-quarter
increase in selling and marketing expenses was primarily due to
higher travel-related expenses incurred in the third quarter as a
result of increased travel associated with the client pitching
season. The 19.1% year-over-year and 2.2% quarter-over-quarter
decrease in general and administrative expenses was mainly
attributed to a decrease in bad debt provisions in the third
quarter.
Net Income (Loss)
US$ mm
|
3Q13
|
3Q12
|
2Q13
|
Y-o-Y %
|
Q-o-Q%
|
Non-GAAP net income
(loss)*
|
$0.5
|
$0.8
|
$2.5
|
-42.4%
|
-81.1%
|
Net income
(loss)
|
-$0.6
|
$0.1
|
$1.2
|
-834.5%
|
-154.0%
|
Basic net income
(loss) per ADS (US$)
|
-$0.03
|
-$0.01
|
$0.02
|
|
|
Diluted net income
(loss) per ADS (US$)
|
-$0.03
|
-$0.01
|
$0.02
|
|
|
|
*The Company's
non-GAAP net income (loss) excludes share-based compensation
expenses, and amortization of intangible assets.
|
Each American depositary share ("ADS") represents two common
shares. The weighted average number of shares used to compute basic
net income per ADS for the third quarter of 2013 was 40,445,764. As
of September 30, 2013, 40,561,549
ADSs were issued and outstanding.
Cash Flows and Cash Position
Net cash flow from operations for the third quarter of 2013 was
negative $4.8 million. As of
September 30, 2013, the Company had
cash and cash equivalents of $91.1
million, compared to $96.5
million at the end of the second quarter of 2013.
Customers
In the third quarter of 2013, Charm's agency business had 195
advertisers, compared to 190 advertisers in the second quarter of
2013 and 167 advertisers in the third quarter of 2012.
In the third quarter of 2013, Charm's principal media business
had 212 advertisers, compared to 212 advertisers in the second
quarter of 2013 and 231 advertisers in the third quarter of
2012.
Employee Headcount
As of September 30, 2013, the
Company had 749 employees, compared to 784 employees as of
June 30, 2013.
Recent Business Developments
In the third quarter of 2013, Charm Click won the Taobao Partner
Award for 2012 and a gold medal in the 2013 China Advertising Great
Wall Marketing Awards for work on behalf of Jaguar Land Rover Ltd.
The Company won two additional gold medals in the China Advertising
Great Wall Marketing Awards for work on behalf of Fen Jiu and Snow
Beer. The Company also won a best commercial award in China's 2013 Best Brand-building Case
Evaluation for work on behalf of China Telecom.
The Company won the following accounts in the third quarter of
2013:
- Charm Advertising: China Merchants Bank, a full media
campaign for Wuliangye Wine, and a print media campaign for
ICBC;
- Charm Click: Supor, Pangu.us,
Xiangxue Pharmaceutical Co., Yong Sheng Yuan, and Boston Merchant
Financial;
- Charm Interactive: Skyworth, Seamild, Dencare, and
Yong Sheng Yuan.
On November 18, at China's annual CCTV primetime auction, the
Company ranked first in terms of total successful bidding volume
for the eleventh year in a row.
On September 30, the Company
announced that its board of directors had received a preliminary
non-binding proposal letter dated September
30, 2013 (the "Proposal Letter") from Mr. Dang, the chairman
of the board of directors (the "Founder"), Merry Circle Trading
Limited, a British Virgin Islands
company controlled by the Founder ("Merry
Circle"), Honour Idea Limited, a British Virgin Islands company owned by the
Founder ("Honour Idea" and,
collectively with Merry Circle, the
"Founder Shareholders"), and CMC Capital Partners HK Limited
(collectively, the "Consortium") to acquire all of the outstanding
shares of the Company not currently owned by the Founder
Shareholders in a "going private" transaction (the "Transaction")
at a price of US$4.70 in cash per
American Depositary Share of the Company ("ADS", each ADS
representing two (2) Class A ordinary shares of the Company), or
US$2.35 in cash per Class A ordinary
share of the Company, and US$2.35 in
cash per Class B ordinary share of the Company, subject to certain
conditions. According to the Proposal Letter, the acquisition is
intended to be financed by debt and/or equity capital and specifies
that the Consortium's proposal constitutes only a preliminary
indication of its interest and is subject to negotiation and
execution of definitive agreements relating to the proposed
Transaction. A copy of the Proposal Letter is available on the
Company's investor relations website.
On October 4, the Company
announced it had established a special committee of its board of
directors (the "Special Committee") to consider the Proposal
Letter. The Special Committee is composed of the following
independent directors of the Company: Mr. Zhan Wang, Mr. Andrew J.
Rickards and Mr. Gang Chen, with Mr. Zhan Wang serving as chairperson of the Special
Committee. The Special Committee and its retained advisors,
including an independent financial advisor, will assist in the
evaluation of the Proposal Letter and any additional proposals that
may be made by Mr. Dang and his affiliates.
The Special Committee has been assigned with the responsibility
to evaluate, negotiate and recommend to the board of directors any
proposals involving a strategic transaction by the Company with one
or more third parties. These evaluations and negotiations are
conducted independently of the Company's management and investor
relations teams. The Company has established an email address
(specialcommittee@charmgroup.cn) that will be managed by the
Special Committee for any investors who may have specific questions
regarding the Proposal.
No final decisions have been made by the Special Committee with
respect to the Company's response to the Proposal Letter. There can
be no assurance that any definitive offer will be made, that any
agreement will be executed, or that the Proposal or any other
transaction will be approved or consummated.
On October 7, the Company
announced its chief financial officer, Mr. Wei Zhou, was stepping down, effective
November 1, in order to pursue other
opportunities. Ms. Cindy Wang, Charm's vice president of
finance, now manages the Company's daily financial operations,
reporting directly to the Company's chief executive officer.
Business Outlook
US$ mm
|
4Q13E
|
Non-GAAP net
income*
|
2.75 ~
3.25
|
|
*The Company's
non-GAAP net income (loss) excludes share-based compensation
expenses and amortization of intangible assets.
|
The Company bases these estimates on a foreign exchange rate of
RMB6.10 to US$1.00. This forecast reflects the Company's
current and preliminary view, which is subject to change.
Non-GAAP Financial Measures:
To supplement the unaudited condensed consolidated financial
information presented in accordance with Accounting Principles
Generally Accepted in the United
States ("GAAP"), the Company also provides the following
non-GAAP financial measures: "turnover," which is defined as total
customer advertising spending placed through or with Charm, and
"non-GAAP net income(loss)," which is defined as GAAP net
income(loss) excluding stock-based compensation expenses and
amortization of intangible assets.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of the Company's current and past
financial performance in ongoing core operations as well as
prospects for the future. These measures should be considered in
addition to results prepared and presented in accordance with GAAP,
but should not be considered a substitute for, or superior to, GAAP
results. Management uses both GAAP and non-GAAP information in
evaluating and operating the Company's business internally and
therefore deems it important to provide all of this information to
investors.
Cautions on Use of Non-GAAP Measures
In addition to Charm's consolidated financial results prepared
under U.S. GAAP, the Company also provides non-GAAP financial
measures, including "turnover" and "non-GAAP net income(loss)." The
Company believes that the non-GAAP financial measures provide
investors with another method for assessing its operating results
in a manner that is focused on the performance of its ongoing
operations.
Management believes investors will benefit from greater
transparency in referring to these non-GAAP financial measures when
assessing the Company's operating results, as well as when
forecasting and analyzing future periods. However, management
recognizes that:
- these non-GAAP financial measures are limited in their
usefulness and should be considered only as a supplement to the
Company's GAAP financial measures;
- these non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, the Company's GAAP
financial measures;
- these non-GAAP financial measures should not be considered to
be superior to the Company's GAAP financial measures; and
- these non-GAAP financial measures were not prepared in
accordance with GAAP and investors should not assume that the
non-GAAP financial measures presented in this earnings release were
prepared under a comprehensive set of rules or principles.
Further, these non-GAAP financial measures may be unique to the
Company, as they may be different from non-GAAP financial measures
used by other companies. As such, this presentation of non-GAAP
financial measures may not enhance the comparability of the
Company's results to the results of other companies. Readers are
cautioned not to view non-GAAP results on a stand-alone basis or as
a substitute for results under GAAP, or as being comparable to
results reported or forecasted by other companies.
A reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure or measures appears at
the end of this press release.
Conference Call
Charm's management team will hold an earnings conference call at
8 a.m. U.S. Eastern Time
(9 p.m. Beijing / Hong Kong Time) on Monday, December 2, 2013.
Dial-in details for the conference call are as follows:
U.S.:
|
+1-845-675-0437
|
International:
|
+65-6723-9381
|
United
Kingdom:
|
+44-20-3059-8139
|
Hong Kong:
|
+852-2475-0994
|
Passcode:
|
12834505
|
A replay of the call will be available from 11 a.m. December 2,
2013 until December 9, 2013
U.S. Eastern Time. Dial-in details for the replay are as
follows:
International:
|
+61-2-8199-0299
|
Passcode:
|
12834505
|
Additionally, an archived webcast of this call will be available
on the Investor Relations section of the Charm web site at
http:/ir.charmgroup.cn.
About Charm
Charm Communications Inc. (NASDAQ: CHRM) is a leading
advertising agency group in China
that offers integrated advertising services with particular focus
on television and the internet. Charm's integrated advertising
services include full media planning and buying, as well as
creative and branding services. Charm has built a full service
digital advertising platform, which offers digital campaign
capabilities across all key digital media, including search
engines, display portals, online video sites and social networking
services. Charm also secures advertising inventory and other
advertising rights, such as sponsorships and branded content, from
premium media networks and resells to clients as part of its
integrated media offerings. Charm's clients include China's top domestic brands, as well as a
number of major international brands, across a wide range of
industries. Since 2003 Charm has been the top agency every year for
China's leading television
network, China Central Television (CCTV). For more information,
please visit http://ir.charmgroup.cn.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in 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. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties. Further information
regarding these and other risks is included in Charm's filings with
the U.S. Securities and Exchange Commission, including its
registration statement on Form F-1. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and actual
results may differ materially from the anticipated results. You are
urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not
to place undue reliance on such forward-looking statements, which
are qualified in their entirety by these cautionary statements.
For investor and media inquiries, please contact:
In China:
Ms. Jenny Wang
IR Department
Charm Communications Inc.
Phone: +86-10-8556-2527
Email: ir@charmgroup.cn
In the United
States:
Mr. Justin Knapp
Ogilvy Financial
Phone: +1-616-551-9714
Email: chrm@ogilvy.com
Charm
Communications Inc.
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(Amounts in thousands
of U.S. dollars)
|
|
|
|
|
|
September 30
2013
|
June 30
2013
|
December 31
2012
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
91,146
|
96,485
|
116,589
|
|
Notes
receivable
|
6,726
|
7,588
|
6,993
|
|
Prepaid
expenses
|
64,737
|
56,415
|
93,838
|
|
Deposits
|
26,192
|
24,893
|
24,723
|
|
Accounts
receivable
|
105,106
|
107,039
|
89,964
|
|
Amount due from
related parties
|
783
|
2,399
|
1,938
|
|
Deferred tax
assets
|
195
|
194
|
191
|
|
Other current
assets
|
5,612
|
4,878
|
4,021
|
Total current
assets
|
300,497
|
299,891
|
338,257
|
|
|
|
|
|
|
Fixed assets,
net
|
9,297
|
8,091
|
7,638
|
|
Intangible assets,
net
|
1,731
|
1,954
|
2,375
|
|
Investments under
equity method
|
2,213
|
2,018
|
2,133
|
|
Goodwill
|
4,458
|
4,445
|
4,379
|
|
Cost method
investments
|
817
|
815
|
803
|
|
Other non-current
assets
|
2,657
|
3,065
|
3,045
|
|
|
|
|
|
Total non-current
assets
|
21,173
|
20,388
|
20,373
|
|
|
|
|
|
TOTAL
ASSETS
|
321,670
|
320,279
|
358,630
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable (of
which 41, 54 and 53, as of September 30, 2013, June 30, 2013, 2013
and December 31,2012 of the consolidated VIE without recourse to
the Company, respectively)
|
25,792
|
27,191
|
38,855
|
|
Amounts due to
related parties (of which nil, nil and 313 as of September 30,
2013, June 30, 2013 and December 31,2012 of the consolidated
VIE without recourse to the Company, respectively)
|
8,044
|
8,831
|
13,310
|
|
Advances from
customers (of which 1,154, 1,525, and 1,408 as of September 30,
2013, June 30, 2013 and December 31,2012 of the consolidated
VIE without recourse to the Company, respectively)
|
52,024
|
50,678
|
56,343
|
|
Accrued expenses and
other current liabilities (of which 3,135, 3,131, and 3,246 as of
September 30, 2013, June 30, 2013 and December 31,2012 of the
consolidated VIE without recourse to the Company,
respectively)
|
15,825
|
14,699
|
18,912
|
|
Consideration payable
(of which nil as of September 30, June 30, 2013, and December
31,2012 of the consolidated VIE without recourse to the Company,
respectively)
|
1,600
|
1,975
|
2,507
|
|
Divdend payable (of
which nil as of September 30, 2013, June 30, 2013, and December
31,2012 of the consolidated VIE without recourse to the Company,
respectively)
|
|
-
|
-
|
Total current
liabilities
|
103,285
|
103,374
|
129,927
|
|
|
|
|
|
|
Consideration payable
(of which nil as of June 30, 2013, March 31, 2013 and
December 31, 2012 of the consolidated VIE without recourse to the
Company, respectively)
|
1,351
|
1,347
|
1,327
|
Total non-current
liabilities
|
1,351
|
1,347
|
1,327
|
|
|
|
|
|
Total
liabilities
|
104,636
|
104,721
|
131,254
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
6,004
|
5,812
|
5,434
|
|
|
|
|
|
Equity:
|
|
|
|
Charm Communications
Inc.'s equity
|
|
|
|
|
Ordinary
shares
|
8
|
8
|
8
|
|
Additional paid-in
capital
|
87,014
|
86,034
|
100,850
|
|
Retained
earnings
|
98,954
|
100,191
|
101,225
|
|
Accumulated other
comprehensive income
|
19,862
|
18,926
|
15,652
|
Total Charm
Communications Inc. shareholders' equity
|
205,838
|
205,159
|
217,735
|
Noncontrolling
interest
|
5,192
|
4,587
|
4,207
|
Total
equity
|
211,030
|
209,746
|
221,942
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE NONCONTROLLING
|
|
|
|
INTEREST AND
EQUITY
|
321,670
|
320,279
|
358,630
|
|
|
|
|
|
Charm
Communications Inc.
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
(Amounts in thousands
of U.S. dollars, except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
For the three
months ended,
|
|
|
|
September 30
2013
|
September 30
2012
|
June 30
2013
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Media investment
management
|
|
27,740
|
34,073
|
29,556
|
|
Advertising
agency
|
|
11,284
|
13,646
|
12,178
|
|
Branding and identity
services
|
|
1,640
|
1,125
|
1,117
|
Total
revenues
|
|
40,664
|
48,844
|
42,851
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Media investment
management
|
|
25,246
|
32,301
|
25,720
|
|
Advertising
agency
|
|
1,016
|
1,371
|
1,197
|
|
Branding and identity
services
|
|
1,049
|
796
|
845
|
Total cost of
revenues:
|
|
27,311
|
34,468
|
27,762
|
Gross
profit
|
|
13,353
|
14,376
|
15,089
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and marketing
expenses
|
|
9,681
|
9,413
|
9,026
|
|
General and
administrative expenses
|
|
4,365
|
5,393
|
4,462
|
Total operating
expenses
|
|
14,046
|
14,806
|
13,488
|
|
Gain(Loss) from
equity method investees
|
|
189
|
237
|
101
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(504)
|
(193)
|
1,702
|
|
|
|
|
|
|
|
Interest
income
|
|
299
|
472
|
85
|
|
|
|
|
|
|
Income (loss) before
income tax expense
|
|
(205)
|
279
|
1,787
|
|
Income tax expense
(benefit)
|
|
434
|
192
|
604
|
Net income
(loss)
|
|
(639)
|
87
|
1,183
|
Net income
attributable to noncontrolling interest
|
|
598
|
597
|
468
|
Net income (loss)
attributable to Charm Communications Inc.
|
|
(1,237)
|
(510)
|
715
|
|
|
|
|
|
Net income(loss)
attributable to Charm Communications Inc. shareholders per
ADS:
|
|
|
|
|
Basic
|
|
(0.03)
|
(0.01)
|
0.02
|
Diluted
|
|
(0.03)
|
(0.01)
|
0.02
|
Shares used in
computation of net income(loss) per ADS:
|
|
|
|
|
Basic
|
|
40,445,764
|
38,765,702
|
40,211,181
|
Diluted
|
|
40,445,764
|
38,765,702
|
40,329,981
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
Share-based
compensation expenses during the period included in:
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
Selling and marketing
expenses
|
|
436
|
323
|
756
|
General and
administrative expenses
|
|
451
|
156
|
350
|
Total
|
|
887
|
479
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
Charm
Communications Inc.
|
|
|
|
|
Consolidated
Statements of Comprehensive Income(Loss)
|
|
(Amounts in thousands
of U.S. dollars, except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
For the three
months ended,
|
|
|
|
September 30
2013
|
September 30
2012
|
June 30
2013
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
|
(639)
|
87
|
1,183
|
Other comprehensive
income (loss) net of tax:
|
|
|
|
|
Changes in cumulative
foreign exchange translation adjustment
|
936
|
2,404
|
2,608
|
Comprehensive income
(loss)
|
|
297
|
2,491
|
3,791
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to non-controlling interest
|
(605)
|
(688)
|
(278)
|
Less: Comprehensive
income attributable to redeemable non-controlling
interest
|
(192)
|
(146)
|
(190)
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to Charm Communications Inc.
|
(500)
|
1,657
|
3,323
|
|
|
|
|
|
|
Reconciliation
from Net income (loss) to Non-GAAP net income
(loss):
|
|
(Amounts in thousands
of U.S. dollars)
|
|
|
|
|
|
For the three
months ended,
|
|
|
September 30
2013
|
September 30
2012
|
June 30
2013
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
(639)
|
87
|
1,183
|
|
|
|
|
|
|
Add back share-based
compensation expenses
|
|
|
|
|
during the
related periods
|
887
|
479
|
1,106
|
|
|
|
|
|
|
Add back amortization
on intangible assets
|
227
|
259
|
227
|
|
|
|
|
|
|
Non-GAAP net
income (loss)
|
475
|
825
|
2,516
|
|
|
|
|
|
Reconciliation
from Turnover (non-GAAP) to US GAAP Revenues:
|
(Amounts in thousands
of U.S. dollars)
|
|
|
|
|
For the three
months ended,
|
|
|
September 30
2013
|
September 30
2012
|
June 30
2013
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Turnover
(non-GAAP):
|
|
|
|
|
Media investment
management
|
27,740
|
34,073
|
29,556
|
|
Advertising
agency
|
171,071
|
182,457
|
172,013
|
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
|
Total
turnover
|
198,811
|
216,530
|
201,569
|
|
|
|
|
|
|
Extracted
rate:
|
|
|
|
|
Media investment
management
|
100.0%
|
100.0%
|
100.0%
|
|
Advertising
agency
|
6.6%
|
7.5%
|
7.1%
|
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
USGAAP
Revenue:
|
|
|
|
|
Media investment
management
|
27,740
|
34,073
|
29,556
|
|
Advertising
agency
|
11,284
|
13,646
|
12,178
|
|
Branding and identity
services
|
1,640
|
1,125
|
1,117
|
|
Total
revenue
|
40,664
|
48,844
|
42,851
|
|
|
|
|
|
SOURCE Charm Communications Inc.