SHANGHAI, March 20, 2012 /PRNewswire-Asia/ -- Taomee
Holdings Limited (NYSE: TAOM) ("Taomee" or the "Company"), one of
the leading children's entertainment and media companies in
China, today reported its
unaudited financial results for the fourth quarter ended
December 31, 2011 and fiscal year
2011.
Fourth Quarter 2011 Financial Highlights
- Total net revenues were US$8.6
million in the fourth quarter of 2011, a decrease of 32.5%
from US$12.7 million in the third
quarter of 2011 and 11.0% from US$9.6
million in the fourth quarter of 2010.
- Gross margin increased to 81.3% in the fourth quarter of 2011
from 81.2% in the third quarter of 2011 and 80.8% in the fourth
quarter of 2010.
- Net income attributable to the holders of ordinary shares was
US$ 1.6 million in the fourth quarter
of 2011, compared with US $4.4
million in the third quarter of 2011 and US $5.6 million in the fourth quarter of 2010.
- Basic and diluted earnings per ADS(1) were US$0.04 and US$0.04, respectively, in the fourth quarter of
2011, compared with US$0.12 and
US$ 0.12, respectively, in the third
quarter of 2011 and US$0.19 and
US$0.18, respectively, in the fourth
quarter of 2010.
- Non-GAAP net income attributable to holders of ordinary shares
was US$2.3 million in the fourth
quarter of 2011, compared with US$5.0
million in the third quarter of 2011 and US$5.7 million in the fourth quarter of
2010.
- Non-GAAP basic and diluted earnings per ADS were US$0.06 and US$0.06, respectively, in the fourth quarter of
2011, compared with US$0.14 and
US$0.13, respectively, in the third
quarter of 2011 and US$0.20 and
US$0.18, respectively, in the fourth
quarter of 2010.
Fiscal Year 2011 Financial Highlights
- Total net revenues were US$45.4
million in 2011, an increase of 26.2% from US$36.0 million in 2010.
- Net income attributable to the holders of ordinary shares was
US$19.3 million, in 2011, a decrease
of 8.6% from US$21.1 million in
2010.
- Basic and diluted earnings per ADS were US$0.58 and US$0.56, respectively, in 2011.
- Non-GAAP net income attributable to holders of ordinary shares
was US$17.6 million in 2011.
- Non-GAAP basic and diluted earnings per ADS were US$0.53 and US$0.51, respectively, in 2011.
(1) Each American
depositary share ("ADS") represents twenty ordinary
shares
|
"We increased our total active accounts year over year and
exceeded our revenue guidance in the second half of 2011," said Mr.
Benson Wang, Co-founder, director
and chief executive officer of Taomee. "We were pleased with the
user growth and user engagement levels in the fourth quarter and
continue to add loyal customers across multiple media platforms. In
particular, we received high ratings for our animation series,
which have been broadcast across more than 100 television channels
since June 2011.
"In 2012, we plan to accelerate investments in our brands and
platform, and we are willing to sacrifice short term revenue growth
and operating margin in exchange for long term sustainable revenue
and profit growth. China's
domestic industry for family entertainment is still in its early
stages, and we believe there is tremendous revenue growth potential
over the foreseeable future, and more importantly, attractive
returns on capital over the long term."
Operational Results for Fourth Quarter of 2011
- The number of active accounts for the Company's virtual worlds
under operation in mainland China
decreased 27% to approximately 27.0 million from 37.1 million in
the third quarter of 2011 and increased 4% from 26.0 million in the
fourth quarter of 2010.
- Active paying accounts for the Company's virtual worlds under
operation in mainland China
decreased to 1.7 million from 2.1 million in the third quarter of
2011 and from 2.4 million in the fourth quarter of 2010.
- The sequential decreases in active accounts and active paying
accounts were primarily due to seasonality as the fourth quarter
has fewer non-school days compared with the third quarter of
2011.
- The year over year increase in active accounts and decrease in
active paying accounts were primarily due to the fact that the
Company decided to temporarily decelerate monetization in the
fourth quarter of 2011 in an effort to attract new users and
enhance user stickiness.
Unaudited Financial Results for Fourth Quarter of
2011
Total Net Revenues
Total net revenues were US$8.6
million in the fourth quarter of 2011, compared with
US$12.7 million in the third quarter
of 2011 and US$9.6 million in the
fourth quarter of 2010.
Net online business revenues were US$7.5
million, compared with US$10.4
million in the third quarter of 2011 and US$8.8 million in the fourth quarter of 2010. The
quarter-over-quarter decrease was primarily due to seasonality as
the fourth quarter has fewer non-school days than the third quarter
of 2011. The year-over-year decrease was partially due to the
implementation of the Company's strategy to attract new users and
user stickiness while reducing the monetization of online products
temporarily.
Net offline business revenues were US$1.1
million in the fourth quarter of 2011, compared with
US$2.3 million in the third quarter
of 2011 and US$0.8 million in the
fourth quarter of 2010. The sequential decrease was due to we
recorded revenues from proceeds-sharing arrangements from the box
offices of the movie based on the Company's Seer franchise in the
third quarter of 2011 and there was no such revenue in the fourth
quarter of 2011. The year-over-year increases were mainly due to a
rise in offline merchandise and book licensing revenue from the
Taiwanese market.
Total Cost of Services
Total cost of services was US$1.6
million in the fourth quarter of 2011, compared with US$$2.4
million in the third quarter of 2011 and US$1.8 million in the fourth quarter of 2010.
Online business related costs were US$1.3
million in the fourth quarter of 2011, compared with
US$1.5 million in the third quarter
of 2011 and US$1.4 million in the
fourth quarter of 2010. The quarter-over-quarter and the
year-over-year decrease were primarily due to a reduction in costs
associated with prepaid card production expenses.
Offline business related costs were US$0.3 million in the fourth quarter of 2011,
compared with US$0.9 million in the
third quarter of 2011 and US$0.4
million in the fourth quarter of 2010. The sequential
decrease was mainly due to there were no recorded costs associated
with movie production in the fourth quarter of 2011. The
year-over-year decrease was mainly due to the fact that the
recording of costs associated with book trading in the fourth
quarter of 2010 and no book trading in the fourth quarter of
2011.
Gross Profit and Gross Margin
Gross profit was US$7.0 million in
the fourth quarter of 2011, compared with US$10.3 million in the third quarter of 2011 and
US$7.8 million in the fourth quarter
of 2010.
Gross margin was 81.3% in the fourth quarter of 2011, compared
with 81.2% in the third quarter of 2011 and 80.8% in the fourth
quarter of 2010.
Gross margin for the online business was 82.1% in the fourth
quarter of 2011, compared with 85.3% in the third quarter of 2011,
and 83.6% in the fourth quarter of 2010.
Gross margin for the offline business was 75.3% in the fourth
quarter of 2011, compared with 63.0% in the third quarter of 2011
and 48.4% in the fourth quarter of 2010.
Total Operating Expenses
Total operating expenses were US$6.4
million in the fourth quarter of 2011, compared with
US$6.2 million in the third quarter
of 2011 and US$2.9 million in the
fourth quarter of 2010.
- Product development expenses were US$3.1
million in the fourth quarter of 2011, compared with
US$2.9 million in the third quarter
of 2011 and US$1.4 million in the
fourth quarter of 2010. The sequential and year-over-year increases
were primarily due to costs associated with new hires, and an
increase in share-based compensation.
- Sales and marketing expenses were US$1.6
million in the fourth quarter of 2011, compared with
US$1.9 million in the third quarter
of 2011 and US$0.6 million in the
fourth quarter of 2010. The sequential decrease was attributable to
the absence of film and other promotion expenses. The
year-over-year increase was largely due to an increase in animation
related expenses and higher advertising expenses.
- General and administrative expenses were US$2.1 million in the fourth quarter of 2011,
compared with US$2.3 million in the
third quarter of 2011 and US$1.3
million in the fourth quarter of 2010. The sequential
decrease was primarily due to lower professional service expenses
in the fourth quarter of 2011 and the year-over-year increase was
related to higher salary expenses and share based-compensation of
the Company's administrative personnel.
Share of Profit/(Loss) from Equity Method
Investment
Share of loss from equity method investment was US$0.3 million in the fourth quarter of 2011,
compared with a profit of US$0.2
million in the third quarter of 2011 and a profit of
US$0.1 million in the fourth quarter
of 2010.
Profit from Operations
Profit from operations was US$0.6
million in the fourth quarter of 2011, compared with
US$4.1 million in the third quarter
of 2011 and US$4.9 million in the
fourth quarter of 2010.
Income Tax Benefit / (Expense)
We recorded an income tax expense of US$0.1 million in the fourth quarter of 2011,
compared to an income tax expense of US$0.3
million in the third quarter of 2011 and income tax benefit
of US$0.7 million in the fourth
quarter of 2010, the year-over-year increase was due to the changes
in the corporate income tax rate eligibility of Shanghai Shengran
and Shanghai Taomee from 2010 to 2011.
Net Income
Net income attributable to holders of ordinary shares was
US$1.6 million in the fourth quarter
of 2011, compared with US$4.4 million
in the third quarter of 2011 and US$5.6
million in the fourth quarter of 2010.
Basic and diluted earnings per ADS were US$0.04 and US$0.04
each in the fourth quarter of 2011, compared with US$0.12 and US$0.12, respectively, in the third quarter of
2011, and US$0.19 and US$0.18, respectively in the fourth quarter of
2010.
Non-GAAP net income attributable to shareholders was
US$2.3 million in the fourth quarter
of 2011, compared with US$5.0 million
in the third quarter of 2011 and US$5.7
million in the fourth quarter of 2010.
Non-GAAP basic and diluted earnings per ADS were US$0.06 and US$0.06
each in the fourth quarter of 2011, compared with US$0.14 and US$0.13
each, in the third quarter of 2011, and US$0.20 and US$0.18, respectively, in the fourth quarter of
2010.
Cash and Cash Equivalents
As of December 31, 2011, the
Company had US$120.7 million of cash
and cash equivalents, compared with US$43.1
million as of December 31,
2010.
Unaudited Financial Results for Fiscal year 2011
Net Revenues
Net revenues were 45.4 million in 2011, representing an increase
of 26.1% from $36.0 million in 2010.
This increase was primarily due to an increase in the revenues from
the Company's online and offline businesses.
Net revenues generated from the online business increased from
US$33.7 million in 2010 to
US$40.3 million in 2011. The increase
was driven by both the growth of our existing self-developed
franchises as well as revenues from third party developed games
available to users on our platform.
Net revenues generated from offline business increased
significantly to US$5.1 million in
2011 from approximately US$2.3
million in 2010. This increase was primarily due to revenues
generated from the Company's co-branding and merchandise licensing
contracts and revenue-sharing arrangements for a film based on the
Seer franchise and royalty received from publishers of children's
books.
Cost of Services
Cost of services increased from US$5.9
million in 2010 to US$7.7
million in 2011, primarily due to the expansion of both
online and offline businesses.
Cost of services relating to the Company's online business
increased to US$6.0 million in 2011
from US$5.2 million in 2010. This
increase was primarily due to an increase in the salaries and
benefits expenses to the Company's employees and share based
compensation.
Cost of services relating to the Company's offline business
increased to US$1.7 million in 2011
from approximately US$0.7 million in
2010. This increase was primarily attributable to film and
animations production costs as well as increases in the salaries
and benefit payments to the newly-hired employees for the offline
business.
Total Operating Expenses
Total operating expenses increased to US$22.8 million in 2011 from US$11.7 million in 2010. The increase in the
operating expenses was primarily due to increases in product
development expenses and sales and marketing expenses, and to a
lesser extent, increases in general and administrative expenses.
Details are as follows:
- Product development expenses increased by121.6% from
US$4.6 million in 2010 to
US$10.3 million in 2011. The increase
was primarily attributable to an increase in salary and benefit
expenses as additional software engineers, development staff, and
creative technicians including writers, virtual world architects,
and graphic artists were hired. A significant percentage of the
R&D headcount additions were allocated toward the new
investments in mobile, platform services, online video, and brand
management.
- Sales and marketing expenses increased by298.4% from
US$1.6 million in 2010 to
US$6.3 million in 2011. The increase
was primarily attributable to higher advertising and promotional
activities, including those related to new product launches
throughout 2011, as well as an increase in animation related
expenses. Mole's World season one was launched in June 2011 and Seer season one in January 2012.
- General and administrative expenses increased by 39.0% from
US$5.7 million in 2010 to
US$8.0 million in 2011. The increase
was primarily due to the increase in share-based compensation and
incremental expenses as a listed company.
Share of Profit in Equity Method Investments
Share of profit in equity method investments was US$4.2 million in 2011, compared with
US$0.5 million in 2010 mainly due to
a US$3.7 million gain realized from
the sale of 10.5% equity method interest in Elyn Corporation in
February 2011.
Profit from Operations
Profit from operations was US$14.9
million in 2011, compared with US$18.5 million in 2010.
Income Tax Benefit/ (Expense)
Income tax expense was US$1.7
million in 2011, compared to an income tax benefit of
approximately US$2.5 million in 2010,
due to the changes in the corporate income tax rate eligibility of
Shanghai Shengran and Shanghai Taomee in 2011.
Net Income
Net income attributable to holders of ordinary shares was
US$19.3 million in 2011, compared
with US$21.1 million in
2010.
Basic and diluted earnings per ADS were US$0.58 and US$0.56, respectively in 2011, compared with
US$0.73 and US$0.72, respectively, in 2010.
Non-GAAP net income attributable to shareholders was
US$17.6 million in 2011 compared with
US$21.3 million in 2010.
Non-GAAP basic and diluted earnings per ADS were US$0.53 and US$0.51, respectively in 2011, compared with
US$0.73 and US$0.73, respectively, in 2010.
Recent Business Highlights
On November 18,
2011, Taomee commercially launched the virtual world
Seer II, a sequel to the original Seer virtual world.
As of December 31,
2011, Taomee had repurchased an aggregated of
123,658 ADSs, representing 2,473,160 ordinary shares, on the open
market for total cash consideration of $562,502 under the share repurchased plan
approved by the Company's board of directors on November 22, 2011.
On January 6, 2012,
Taomee launched its online video content website of v.61.com in
cooperation with iQiyi.com and Youku.com.
On January 9, 2012,
the first season of Seer animation series started to broadcast in
China.
On January 11, February 16 and March 1,
2012, Taomee released three games and applications
for Apple iOS; Mole Kart, Mole Baby and Taomee MaMa,
respectively.
On February 28,
2012, the Board of Directors approved a resolution
to convert the share options that were granted by the Company on
January 4 and May 24, 2011 into restricted shares at the ratio
of 3:1.
On March 9, 2012,
the second season of the Mole's World animation series started to
broadcast in China.
Outlook for First Quarter of 2012
Net revenues for the first quarter of 2012 are expected to
increase approximately 10% sequentially in comparison to the fourth
quarter of 2011.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP net income attributable to the Company's
shareholders and non-GAAP earnings per ADS by excluding share-based
compensation charges from net income attributable to the Company's
shareholders and from the calculation of earnings per ADS. For the
year ended December 31, 2011, the
Company also excluded its one time gain from selling its equity
method investment in Elyn Corporation from net income attributable
to the ordinary shareholders. The Company believes these non-GAAP
financial measures are important to help investors understand the
Company's operating and financial performance, compare business
trends among different reporting periods on a consistent basis and
assess the Company's core operating results,. The use of the
above non-GAAP financial measures has certain limitations.
Share-based compensation charge has been and will continue to be
incurred and is not reflected in the presentation of the non-GAAP
financial measures; it should be considered in the overall
evaluation of our results. None of the non-GAAP measures is a
measure of net income attributable to the Company's shareholders,
operating profit, operating performance or liquidity presented in
accordance with GAAP. We compensate for these limitations by
providing the relevant disclosure of our share-based compensation
charge in our reconciliations to the most directly comparable GAAP
financial measures, which should be considered when evaluating our
performance. These non-GAAP financial measures should be
considered in addition to financial measures prepared in accordance
with GAAP, but should not be considered a substitute for, or
superior to, financial measures prepared in accordance with
GAAP. Reconciliation of each of these non-GAAP financial
measures to the most directly comparable GAAP financial measure is
set forth at the end of this release.
Conference Call
The Company will host a conference call and live webcast
at 8:00 p.m. Eastern Time (New
York) on Tuesday, March 20, 2012 (which
is 8:00 a.m. in China on Wednesday, March 21, 2012).
The dial-in details for the live conference call are:
U.S. toll-free
number:
|
+1-866-519-4004
|
Hong Kong toll-free
number:
|
800-930-346
|
International dial-in
number:
|
+65-6723-9381
|
China Mainland dial-in
number:
|
400-620-8038
|
Passcode:
|
Taomee
|
A live webcast and archive of the conference call will be
available on the Investor Relations section of Taomee's website
at:
http://ir.taomee.com/phoenix.zhtml?c=243417&p=irol-eventDetails&EventId=4728668
A telephone replay of the call will be available after the
conclusion of the conference call at 2:00
p.m. Eastern Time on March 21,
2011 through March 28, 2012 11:59 p.m. Eastern Time. The dial-in details
for the telephone replay are:
Conference ID
number:
|
56201304
|
International dial-in number:
|
+612-8235-5000
|
China dial-in number:
|
+400-692-0026
|
About Taomee Holdings Limited
Taomee Holdings Limited is one of the leading children's
entertainment and media companies in China driven to deliver exceptional
entertainment to children and families. Founded in 2007,
Taomee is one the first companies in Greater China to develop animated franchises
for children through online virtual world that are both fun and
educational. The Company's virtual worlds are widely trusted by
millions of parents and caregivers across Asia. The Company's Mole's World and Seer
franchises and characters have reached millions of children and
families through virtual worlds, books, monthly print magazines,
mobile applications, animated television series and movies.
- Learn more about Taomee at www.taomee.com.
- Visit online virtual world communities at www.61.com.
- Watch animations and films at http://v.61.com/.
- Download mobile games and applications at
http://m.61.com/.
- Share with other parents and caregivers at
http://mama.61.com/.
Safe Harbor Statements
This press release contains statements that may constitute
"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.
Forward-looking statements can be identified by words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to" or other similar expressions. Among other things, the
management's quotations and outlook information contain
forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements to
be materially different from those expressed or implied by the
forward-looking statements. Potential risks and uncertainties
include, but are not limited to: the Company's business strategies
and initiatives as well as business plans; future business
development, results of operations and financial condition;
expected changes in revenues and certain cost or expense items;
expectations with respect to increased revenue growth and the
Company's ability to sustain profitability; the Company's services
and products under development or planning; the Company's ability
to attract users and further enhance the Company's brand
recognition; and trends and competition in the children's
entertainment and media market and industry, including those for
online entertainment. Further information regarding these and other
risks is included in Taomee's filings with the U.S. Securities and
Exchange Commission, including its registration statement on its
final prospectus dated June 10, 2011.
All information provided in this press release is as of the date of
the press release, and the Company undertakes no obligation to
update any forward-looking statements to reflect subsequent
occurring events or circumstances, or changes in its expectations,
except as required under applicable law. Although the Company
believes that the expectations expressed in these forward looking
statements are reasonable, the Company cannot assure you that their
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results.
For further information, please contact
Taomee Holdings Limited
Phone: +86-21-6128-0056 x8578
Email: ir@taomee.com
Taomee Holdings
Limited
|
Unaudited
Consolidated Balance Sheets
|
|
|
|
|
|
In
USD
|
|
In
USD
|
|
December
31,
|
|
December
31,
|
|
2011
|
|
2010
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
120,678,898
|
|
$
43,087,134
|
Accounts receivable
|
1,422,534
|
|
438,243
|
Due
from related parties
|
202,267
|
|
-
|
Prepayments and other current assets
|
1,514,565
|
|
1,358,678
|
Deferred tax assets, current
|
3,247,404
|
|
2,799,865
|
Total current
assets
|
127,065,668
|
|
47,683,920
|
|
|
|
|
Investments in equity
method investees
|
2,406,111
|
|
1,035,710
|
Property and equipment,
net
|
2,405,576
|
|
3,125,608
|
Acquired intangible
assets
|
1,379,154
|
|
146,133
|
Other assets
|
1,197,907
|
|
1,040,813
|
TOTAL
ASSETS
|
$
134,454,416
|
|
$
53,032,184
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
221,820
|
|
$
344,698
|
Income tax payable
|
2,187,076
|
|
-
|
Advance from customers
|
10,223,309
|
|
8,684,198
|
Due
to related parties
|
66,104
|
|
38,826
|
Deferred revenue
|
12,912,939
|
|
10,783,198
|
Dividends payable
|
-
|
|
8,950,000
|
Deferred tax liabilities, current
|
10,910
|
|
511,039
|
Accrued expenses and other current liabilities
|
5,680,706
|
|
4,984,584
|
Total current
liabilities
|
31,302,864
|
|
34,296,543
|
|
|
|
|
Mezzanine
equity:
|
|
|
|
Series A convertible
redeemable preferred shares ($0.00002 par value; 125,000,000 and
nil shares
authorized, issued and outstanding as of
December 31, 2010 and 2011) (Redemption value
$7,500,000)
|
-
|
|
5,627,390
|
Equity
|
|
|
|
Ordinary shares ($0.00002 par
value; 875,000,000 shares authorized; 450,000,000 and 730,900,680
shares
issued; 450,000,000 and
728,427,520 outstanding as of December 31, 2010 and 2011,
respectively)
|
14,618
|
|
9,000
|
Treasury stock (2,473,160 shares as of December 31,
2011)
Additional paid-in capital
|
(562,502)
70,782,370
|
|
1,158,534
|
Retained earnings
|
30,550,850
|
|
11,258,280
|
Accumulated other comprehensive income
|
2,366,216
|
|
682,437
|
Total equity
|
$
103,151,552
|
|
$
13,108,251
|
|
|
|
|
TOTAL LIABILITIESAND
EQUITY
|
134,454,416
|
|
53,032,184
|
Taomee Holdings
Limited
|
Unaudited
Consolidated Statements of Operations
|
|
|
|
In USD, except for
share data
For three months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2011
|
|
2011
|
|
2010
|
Revenues:
|
|
|
|
|
|
|
Online business, net
|
|
$
7,479,824
|
|
$
10,382,615
|
|
$
8,844,961
|
Offline business, net
|
|
1,077,778
|
|
2,296,950
|
|
772,458
|
Total net
revenues
|
|
8,557,602
|
|
12,679,565
|
|
9,617,419
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
|
|
Online business
|
|
(1,335,365)
|
|
(1,529,614)
|
|
(1,447,607)
|
Offline business
|
|
(265,802)
|
|
(850,275)
|
|
(398,421)
|
Total cost of
services
|
|
(1,601,167)
|
|
(2,379,889)
|
|
(1,846,028)
|
|
|
|
|
|
|
|
Gross
profit
|
|
6,956,435
|
|
10,299,676
|
|
7,771,391
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
Product development
|
|
(3,070,379)
|
|
(2,929,040)
|
|
(1,365,649)
|
Sales
and marketing
|
|
(1,639,118)
|
|
(1,901,633)
|
|
(576,310)
|
General and administrative
|
|
(2,141,589)
|
|
(2,278,333)
|
|
(1,256,730)
|
Other
operating income
|
|
492,671
|
|
907,625
|
|
278,250
|
Total operating
expenses
|
|
(6,358,415)
|
|
(6,201,381)
|
|
(2,920,439)
|
|
|
|
|
|
|
|
Profit from
operations
|
|
598,020
|
|
4,098,295
|
|
4,850,952
|
|
|
|
|
|
|
|
Interest income,
net
|
|
689,590
|
|
482,981
|
|
89,835
|
Other income
(expenses), net
|
|
733,409
|
|
(65,966)
|
|
(3,734)
|
Income before income
taxes and share of profit in equity method
investments
|
|
2,021,019
|
|
4,515,310
|
|
4,937,053
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
(128,279)
|
|
(284,753)
|
|
669,391
|
|
|
|
|
|
|
|
Share of profit (loss)
in equity method investments
|
|
(274,039)
|
|
178,657
|
|
106,681
|
|
|
|
|
|
|
|
Net
income
|
|
1,618,701
|
|
4,409,214
|
|
5,713,125
|
|
|
|
|
|
|
|
Less: Deemed dividends
on Series A convertible redeemable preferred shares
|
|
-
|
|
-
|
|
(117,027)
|
|
|
|
|
|
|
|
Net income
attributable to holders of ordinary shares
|
|
$
1,618,701
|
|
$
4,409,214
|
|
$
5,596,098
|
Earnings per
ADS
|
|
|
|
|
|
|
-Basic
|
|
$
0.04
|
|
$
0.12
|
|
$
0.19
|
-Diluted
|
|
$
0.04
|
|
$
0.12
|
|
$
0.18
|
Weighted average
number of shares used in calculation
|
|
|
|
|
|
|
- Basic
|
|
728,876,950
|
|
728,341,047
|
|
450,000,000
|
- Diluted
|
|
758,032,650
|
|
764,675,988
|
|
480,061,357
|
Taomee Holdings
Limited
|
|
Unaudited
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
In USD, except for
share data
For year
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
Revenues:
|
|
|
|
|
|
|
Online business, net
|
|
|
$
40,330,778
|
|
$
33,682,849
|
|
Offline business, net
|
|
|
5,066,263
|
|
2,290,045
|
|
Total net
revenues
|
|
|
45,397,041
|
|
35,972,894
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
|
|
Online business
|
|
|
(6,035,323)
|
|
(5,165,602)
|
|
Offline business
|
|
|
(1,652,235)
|
|
(685,583)
|
|
Total cost of
services
|
|
|
(7,687,558)
|
|
(5,851,185)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
37,709,483
|
|
30,121,709
|
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
Product development
|
|
|
(10,303,929)
|
|
(4,649,036)
|
|
Sales
and marketing
|
|
|
(6,254,531)
|
|
(1,569,972)
|
|
General and administrative
|
|
|
(7,965,104)
|
|
(5,728,962)
|
|
Other
operating income
|
|
|
1,733,418
|
|
278,250
|
|
Total operating
expenses
|
|
|
(22,790,146)
|
|
(11,669,720)
|
|
|
|
|
|
|
|
|
Profit from
operations
|
|
|
14,919,337
|
|
18,451,989
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
|
1,409,662
|
|
240,132
|
|
Other income
(expenses), net
|
|
|
666,961
|
|
(115,345)
|
|
Income before income
taxes and share of profit in equity method investments
|
|
|
16,995,960
|
|
18,576,776
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
(1,727,070)
|
|
2,503,727
|
|
|
|
|
|
|
|
|
Share of profit in
equity method investments
|
|
|
4,224,281
|
|
493,573
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
19,493,171
|
|
21,574,076
|
|
|
|
|
|
|
|
|
Less: Deemed dividends
on Series A convertible redeemable preferred shares
|
|
|
(200,601)
|
|
(468,580)
|
|
|
|
|
|
|
|
|
Net income
attributable to holders of ordinary shares
|
|
|
$
19,292,570
|
|
$
21,105,496
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
-Basic
|
|
|
$
0.58
|
|
$
0.73
|
|
-Diluted
|
|
|
$
0.56
|
|
$
0.72
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation
|
|
|
|
|
|
|
- Basic
|
|
|
606,648,098
|
|
450,000,000
|
|
- Diluted
|
|
|
640,377,175
|
|
458,482,370
|
|
|
|
|
|
|
|
|
|
|
Taomee Holdings
Limited
|
Reconciliation of
Non-GAAP and GAAP Results
|
|
|
|
|
|
In USD, except for
share data
For three months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2011
|
|
2011
|
|
2010
|
Reconciliation from
Non-GAAP measures to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to holders of ordinary shares
|
|
$
2,256,873
|
|
$
5,039,182
|
|
$
5,669,072
|
Share-based
compensation
|
|
(638,172)
|
|
(629,968)
|
|
(72,974)
|
GAAP net income
attributable to holders of ordinary shares
|
|
$
1,618,701
|
|
$
4,409,214
|
|
$
5,596,098
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
|
|
|
|
|
|
-Basic
|
|
$
0.06
|
|
$
0.14
|
|
$
0.20
|
-Diluted
|
|
$
0.06
|
|
$
0.13
|
|
$
0.18
|
Taomee Holdings
Limited
|
Reconciliation of
Non-GAAP and GAAP Results
|
|
|
|
|
|
In USD, except for
share data
For the year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
Reconciliation from
Non-GAAP measures to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to holders of ordinary shares
|
|
|
$
17,627,225
|
|
$
21,275,942
|
Investment income from
sell of equity interest(2)
|
|
|
3,662,098
|
|
|
Share-based
compensation
|
|
|
(1,996,753)
|
|
(170,446)
|
GAAP net income
attributable to holders of ordinary shares
|
|
|
$
19,292,570
|
|
$
21,105,496
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
|
|
|
|
|
-Basic
|
|
|
$
0.53
|
|
$
0.73
|
-Diluted
|
|
|
$
0.51
|
|
$
0.73
|
|
|
|
|
|
|
(2) Reflects the
transaction to sell 10.5% of equity interest in Elyn Corporation in
February 2011
|
SOURCE Taomee Holdings Limited