SHANGHAI, March 12, 2014 /PRNewswire/ -- Taomee
Holdings Limited (NYSE: TAOM) ("Taomee" or the "Company"), a
leading children's entertainment and media company in China, today reported its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2013.
Highlights of the Fourth Quarter of
2013
- Total net revenues were US$10.9
million in the fourth quarter of 2013, a decrease of 30.7%
from US$15.8 million in the third
quarter of 2013 and an increase of 46.5% from US$7.5 million in the fourth quarter of 2012.
This result was above the high end of management's previous outlook
from US$10.2 million to US$10.7
million.
- Net revenues from online businesses were US$8.2 million in the fourth quarter of 2013, a
decrease of 19.6% from US$10.3
million in the third quarter of 2013 and an increase of
31.6% from US$6.3 million in the
fourth quarter of 2012.
- Net revenues from offline businesses were US$2.7 million in the fourth quarter of 2013, a
decrease of 51.3% from US$5.5 million
in the third quarter of 2013 and an increase of 123.9% from
US$1.2 million in the fourth quarter
of 2012.
- Gross profit was US$8.0 million
in the fourth quarter of 2013, a decrease of 28.7% from
US$11.2 million in the third quarter
of 2013 and an increase of 46.5% from US$5.5
million in the fourth quarter of 2012.
- Profit from operations was US$2.1
million in the fourth quarter of 2013, an increase of 19.5%
from US$1.7 million in the third
quarter of 2013 and an increase of 62.4% from US$1.3 million in the fourth quarter of
2012.
- Non-GAAP net income attributable to holders of ordinary shares
was US$2.6 million in the fourth
quarter of 2013, as compared with US$2.9
million in the third quarter of 2013 and US$2.7 million in the fourth quarter of
2012.
- Non-GAAP basic and diluted earnings per ADS[1] were
US$0.07 and US$0.07, respectively, in the fourth quarter of
2013, as compared with US$0.08 and
US$0.08, respectively, in the third
quarter of 2013 and US$0.07 and
US$0.07, respectively, in the fourth
quarter of 2012.
- Key Operating Metrics
- The number of active accounts ("ACA") for the Company's virtual
worlds under operation in mainland China was approximately 38.6 million in the
fourth quarter of 2013, a decrease of 36.5% from 60.8 million in
the third quarter of 2013 and an increase of 12.2% from 34.3
million in the fourth quarter of 2012.
- Active paying accounts ("APA") for the Company's virtual worlds
under operation in mainland China
were 1.3 million in the fourth quarter of 2013, a decrease of 25.4%
from 1.7 million in the third quarter of 2013, but an increase of
6.6% from 1.2 million in the fourth quarter of 2012.
- Average revenue per user ("ARPU") for the Company's virtual
worlds under operation in mainland China was approximately RMB37 in the fourth quarter of 2013, an increase
of 2.8% from RMB36 in the third
quarter of 2013 and an increase of 23.3% from RMB30 in the fourth quarter of 2012.
- The number of downloads of the mobile applications operated by
the Company increased by approximately 1.8 million in the fourth
quarter of 2013, a decrease of 51.4% from 3.7 million in the third
quarter of 2013 and a decrease of 33.3% from 2.8 million in the
fourth quarter of 2012.
[1] Each American
depositary share ("ADS") represents twenty ordinary
shares.
|
Highlights of Fiscal Year 2013
- Total net revenues were US$48.4
million in 2013, an increase of 20.3% as compared with
US$40.2 million in 2012.
- Net revenues from online business were US$35.3 million in 2013, an increase of 9.8% as
compared with US$32.2 million in
2012.
- Net revenues from offline businesses were US$13.1 million in 2013, an increase of 62.0% as
compared with US$8.0 million in
2012.
- Gross profit was US$35.1 million
in 2013, an increase of 16.2% as compared with US$30.2 million in 2012.
- Profit from operations was US$3.3
million in 2013, a decrease of 1.1% as compared with
US$3.4 million in 2012.
- Income tax expense was US$1.4
million in 2013, as compared with a benefit of US$0.9 million in 2012.
- Non-GAAP net income attributable to holders of ordinary shares
was US$8.6 million in 2013, as
compared with US$11.1 million in
2012.
- Non-GAAP basic and diluted earnings per ADS were US$0.24 and US$0.23, respectively, in 2013, as compared with
US$0.30 and US$0.29, respectively, in 2012.
Mr. Benson Wang, co-founder and
chief executive officer of Taomee, stated, "We continue to be very
proud of the performance of Taomee team. Our recent results
demonstrate our ability to monetize our franchises across multiple
platforms, whereby our online business is entering new period of
growth and accelerated monetization, in parallel with our continued
strong revenue growth of our offline investments. The fourth
quarter is usually a slower season due to the seasonality of the
school year in China. Even so, we
achieved a 46.5% year-over-year increase in our total net revenues,
which also beat the high end of our management outlook from last
quarter."
"At the same time, we continue to invest in numerous strategic
initiatives. A key tenet of our strategy has always been to grow
our online businesses, and extend those brand recognitions into
numerous adjacencies -- businesses that leverage off our brand
loyalty that we have created in our online communities and push us
into new, and very different, business categories. This is our
competitive moat -- what differentiates us from our
competitors -- because we believe we are unique in our ability
to serve our customers in so many different ways. In 2013, we have
witnessed double- and triple-digit growth in our offline
businesses, primarily generated from toys and movies. At the same
time, we are investing in television and mobile games, in order to
enhance our brand loyalty and to find new monetization channels. We
remain laser-focused on our core customers -- children,
parents, teachers and other caregivers -- as we look for new
and better ways to provide them with better services"
Unaudited Financial Results for Fourth Quarter of
2013
Net Revenues
Total net revenues were US$10.9
million in the fourth quarter of 2013, a decrease of 30.7%
from US$15.8 million in the third
quarter of 2013 and an increase of 46.5% from US$7.5 million in the fourth quarter of 2012.
Net online business revenues were US$8.2
million in the fourth quarter of 2013, a decrease of 19.6%
from US$10.3 million in the third
quarter of 2013 and an increase of 31.6% from US$6.3 million in the fourth quarter of 2012. The
quarter-over-quarter (QoQ) decrease was primarily due to the
seasonality of fewer non-school days in the fourth quarter. The
year-over-year (YoY) increase was driven by the continued revenue
growth of our core virtual worlds as well as contribution from
several newly launched franchises.
Net offline business revenues were US$2.7
million in the fourth quarter of 2013, a decrease of 51.3%
from US$5.5 million in the third
quarter of 2013 and an increase of 123.9% from US$1.2 million in the fourth quarter of 2012. The
QoQ decrease was primarily due to absence of new film release in
the fourth quarter. The YoY increase was primarily due to the
revenue contribution from the Company's interactive toys and
merchandise licensing businesses.
Cost of Services
Total cost of services was US$2.9
million in the fourth quarter of 2013, a decrease of 35.5%
from US$4.5 million in the third
quarter of 2013 and an increase of 46.3% from US$2.0 million in the fourth quarter of 2012.
Online business related costs decreased slightly to US$2.0 million in the fourth quarter of 2013, as
compared with US$2.1 million in the
third quarter of 2013 and increased by 24.8% as compared with
US$1.6 million in the fourth quarter
of 2012. The QoQ decrease was primarily due to the decrease
in bandwidth cost. The YoY increase was primarily due to the
increase in bandwidth costs and fees related to our operation of
certain third-party developed virtual worlds.
Offline business related costs were US$0.9 million in the fourth quarter of 2013, a
decrease of 63.6% from US$2.4 million
in the third quarter of 2013 and an increase of 141.0% from
US$0.4 million in the fourth quarter
of 2012. The QoQ decrease was primarily due to the absence of new
film release in the fourth quarter. The YoY increase was primarily
attributable to the increase in costs related to our interactive
toy business.
Gross Profit and Gross Margin
Gross profit was US$8.0 million in
the fourth quarter of 2013, a decrease of 28.7% from US$11.2 million in the third quarter of 2013 and
an increase of 46.5% from US$5.5
million in the fourth quarter of 2012.
Gross margin was 73.2% in the fourth quarter of 2013, as
compared with 71.2% in the third quarter of 2013 and 73.2% in the
fourth quarter of 2012.
Gross margin for the online business was 75.3% in the fourth
quarter of 2013, as compared with 79.6% in the third quarter of
2013 and 74.0% in the fourth quarter of 2012.
Gross margin for the offline business was 66.8% in the fourth
quarter of 2013, as compared with 55.5% in the third quarter of
2013 and 69.1% in the fourth quarter of 2012.
Total Operating Expenses
Total operating expenses were US$5.9
million in the fourth quarter of 2013, a decrease of 37.4%
from US$9.5 million in the third
quarter of 2013 and an increase of 41.7% from US$4.2 million in the fourth quarter of
2012.
- Product development expenses were US$3.7
million in the fourth quarter of 2013, increased slightly
from US$3.6 million in the third
quarter of 2013 and increased by 37.8% from US$2.7 million in the fourth quarter of 2012.
The YoY increase was primarily due to an increase in payroll
expense, share-based compensation and outsourcing costs.
- Sales and marketing expenses were US$2.4
million in the fourth quarter of 2013, a decrease of 17.6%
from US$2.9 million in the third
quarter of 2013 and an increase of 16.7% from US$2.1 million in the fourth quarter of 2012. The
QoQ decrease was primarily due to absence of Seer III film
promotion costs, which occurred in the third quarter of 2013. The
YoY increase was primarily due to an increase in payroll
expenses.
- General and administrative expenses were US$3.3 million in the fourth quarter of 2013, a
decrease of 12.4% from US$3.8 million
in the third quarter of 2013 and an increase of 52.2% from
US$2.2 million in the fourth quarter
of 2012. The QoQ decrease was primarily due to a decrease in
professional fees. The YoY increase was primarily due to the
increased indirect tax costs related to intercompany service
charges, partially offset by a decrease in professional fees.
- Impairment of intangible assets was US$0.2 million in the fourth quarter of 2013,
related to the remaining term of Speed Hunter, a game of
which the Company obtained a five-year exclusive license right in
2012 and commercially launched in the third quarter of 2013.
- Other operating income was US$3.7
million in the fourth quarter of 2013, which primarily
consisted of US$2.0 million
government subsidies and US$1.3
million value-added tax rebate.
Profit from Operations
Profit from operations was US$2.1
million in the fourth quarter of 2013, an increase of 19.5%
from US$1.7 million in the third
quarter of 2013 and an increase of 62.4% from US$1.3 million in the fourth quarter of 2012.
Share of Profit/ (Loss) from Equity Method
Investment
Share of profit/loss from equity method investment was a loss of
US$0.2 million in the fourth quarter
of 2013, as compared with a loss of US$0.07
million in the third quarter of 2013 and a gain of
US$0.1 million in the fourth quarter
of 2012.
Income Tax Expense
Income tax expense was US$1.0
million in the fourth quarter of 2013, as compared with
US$0.3 million in the third quarter
of 2013 and US$0.4 million in the
fourth quarter of 2012. The QoQ and YoY increases were mainly due
to the accrual of deferred tax liabilities on the undistributed
earnings of our Variable Interest Entities ("VIEs").
Net Income
Net income attributable to holders of ordinary shares was
US$1.4 million in the fourth quarter
of 2013, as compared with US$2.4
million in the third quarter of 2013 and US$2.3 million in the fourth quarter of 2012.
Basic and diluted earnings per ADS were US$0.04 and US$0.04, respectively, in the fourth quarter of
2013, as compared with US$0.07 and
US$0.06, respectively in the third
quarter of 2013 and US$0.06 and
US$0.06, respectively in the fourth
quarter of 2012.
Non-GAAP net income attributable to holders of ordinary shares
was US$2.6 million in the fourth
quarter of 2013, as compared with US$2.9
million in the third quarter of 2013 and US$2.7 million in the fourth quarter of 2012.
Non-GAAP basic and diluted earnings per ADS were US$0.07 and US$0.07, respectively, in the fourth quarter of
2013, as compared with US$0.08 and
US$0.08, respectively, in the third
quarter of 2013 and US$0.07 and
US$0.07, respectively, in the fourth
quarter of 2012.
Cash and Cash Equivalents
As of December 31, 2013, the
Company had US$114.3 million of cash
and cash equivalents, as compared with US$118.6 million as of December 31, 2012.
Capital Expenditures
We had capital expenditures of US$0.3
million in the fourth quarter of 2013, as compared with
US$0.4 million in the third quarter
of 2013, and US$0.3 million in the
fourth quarter of 2012. Total capital expenditures for the
full year of 2013 were US$5.3
million, as compared with US$1.7
million in the full year of 2012. Our capital
expenditures were used primarily for (i) purchase of computer
hardware and equipment, (ii) purchase of intangible assets, (iii)
purchase of franchises and online game licensing rights for our
pipeline and (iv) prepayments as deposits for land use rights and
building purchase. Actual future capital expenditures may
differ from the amounts indicated above.
Share-based Compensation
Share-based compensation was US$0.6
million for the fourth quarter of 2013 as compared with
US$0.5 million in the third quarter
of 2013. Total share-based compensation was US$2.1 million in the full year of 2013, as
compared with US$2.2 million in the
full year of 2012.
Share Repurchase Program
During the fourth quarter of 2013, Taomee had repurchased
113,940 ADSs. As of December 31,
2013, the Company has repurchased a total of 1,064,177 ADSs
under the Company's share repurchase program at an average price of
approximately US$4.1 per ADS.
Unaudited Financial Results for Fiscal year 2013
Net Revenues
Total net revenues were US$48.4
million in 2013, representing an increase of 20.3% from
US$40.2 million in 2012.
Net online business revenues were US$35.3million in 2013, an increase of 9.8% from
US$32.2 million in 2012. The increase
was primarily driven by the continued revenue growth of our core
virtual worlds, as well as contribution from several newly launched
franchises.
Net offline business revenues increased significantly by 62.0%
to US$13.1 million in 2013 from
approximately US$8.0 million in 2012.
The increase was primarily attributable to revenue contribution
from our interactive toy sales business and box office sharing of
our feature film Seer III.
Cost of Services
Total cost of services was US$13.3
million in 2013, an increase of 32.7% from US$10.0 million in 2012.
Online business related costs were US$7.6
million in 2013, an increase of 10.0% from US$6.9 million in 2012. The increase was
primarily due to an increase in bandwidth cost, feess related to
our operation of certain third-party developed virtual worlds and
amortization cost associated with game licensing fees.
Offline business related costs were US$5.7 million in 2013, an increase of 84.4% from
US$3.0 million in 2012. The increase
was primarily due to an increase in interactive toy costs.
Total Operating Expenses
Total operating expenses were US$31.8
million in 2013, an increase of 18.3% from US$26.8 million in 2012.
- Product development expenses were US$13.9 million in 2013, an increase of 12.7% as
compared with US$12.3 million in
2012. The increase was primarily attributable to the
increased payroll expenses.
- Sales and marketing expenses decreased slightly from
US$10.0 million in 2012 to
US$9.4 million in 2013. The
decrease was primarily attributable to the decreased advertising
expenses, partially offset by an increase in payroll expense.
- General and administrative expenses were US$13.1 million in 2013, an increase of 29.9%
from US$10.1 million in 2012.
The increase was primarily due to the increased indirect tax
costs related to intercompany transactions and an increase in
payroll expenses.
- Impairment of intangible assets was US$1.0 million in 2013, related to the remaining
term of two underperforming games, Wizard 101 and Speed
Hunter.
- Other operating income was US$5.7
million in 2013, which primarily consisted of US$2.5 million government subsidies and
US$1.3 million value-added tax
rebate.
Profit from Operations
Profit from operations was US$3.3
million in 2013, a slight decrease of 1.1% as compared with
US$3.4 million in 2012.
Share of Profit/(Loss) in Equity Method
Investments
Share of profit/loss in equity method investments was a loss of
US$0.08 million in 2013, as compared
with a gain of US$1.1 million in
2012. The loss was primarily due to the Company's most recent
equity method investments in entities which are loss-making as they
are in the early stage of research and development.
Income Tax Benefit/(Expense)
Income tax expense was US$1.4
million in 2013, as compared with a benefit of US$0.9 million in 2012. The increase was mainly
due to the accrual of deferred tax liabilities on the undistributed
earnings of our Variable Interest Entities ("VIEs").
Net Income
Net income attributable to holders of ordinary shares was
US$5.2 million in 2013, as compared
with US$8.9 million in 2012.
Basic and diluted earnings per ADS were US$0.14 and US$0.14, respectively in 2013, as compared with
US$0.24 and US$0.24, respectively, in 2012.
Non-GAAP net income attributable to holders of ordinary shares
was US$8.6 million in 2013, as
compared with US$11.1 million in
2012.
Non-GAAP basic and diluted earnings per ADS were US$0.24 and US$0.23, respectively, in 2013, as compared with
US$0.30 and US$0.29, respectively, in 2012.
Recent Business Highlights
In October 2013, Taomee was
granted a three-year right from Viacom International Media Networks
(represented by Viacom Asia (Beijing) Advertising and Media Co., Ltd.) and
will develop a mobile game based on the "Teenage Mutant Ninja
Turtles" franchise for release in China.
In November, 2013, Taomee reorganized its wireless
division and launched a new brand "Glove Game" to develop mobile
games for mainstream users.
In December 2013, Taomee
entered into a license agreement with Chukong Technologies Co.,
Ltd. and its affiliates, a well-known mobile game distributor and
granted two-year exclusive operating rights of an ARPG mobile game
named Reverse World in Mainland China and Taiwan District.
In February 2014, Taomee
released the first season (52 episodes) of Flower Fairy animation
series on major cartoon channels including Aniworld Satellite TV,
ToonMax TV and Youman Cartoon TV throughout China. Flower Fairy animation series debuted
in Taomee Dream School, the Company's self-branded children's
television show and can be also viewed on the Company's online
video website: http://hua.v.61.com/donghua/.
In February 2014, Taomee
launched several new interactive toys, including Warship Spin
Boom and Mole's World Phonics, an English-learning toy
developed in conjunction with a third-party educational App.
Outlook for First Quarter of 2014
Net revenues of the first quarter of 2014 are expected to be in
the range of US$11.0 million to US$11.5
million, which represents year-over-year growth of
approximately 15% to 20%. This forecast reflects the Company's
current and preliminary view of the operating results, and is
subject to future changes.
Management Transition: Departure of Chief Finance
Officer
The Company announced that there will be a transition to a new
CFO and Mr. Paul Keung, chief
finance officer of Taomee, will be gradually handing over his
responsibility in the near term. The Company expects to announce a
candidate of new CFO soon, and Mr. Paul
Keung will remain his position as the CFO with the Company
during the transition period including the filing of the Company's
annual report on Form 20F for the year ended December 31, 2013.
"I have great respect for Paul and we thank him for his many
strategic contributions," said Mr. Benson
Wang, co-founder and chief executive officer of Taomee." "I
appreciate the leadership he displayed in our Company's public
listing in 2011, as well as his contribution to initiate,
implement, and drive significant progress in our transformation.
Paul has helped strengthen our financial foundation, which will be
of great benefits for his successor, our Company, and our
shareholders well for the long term. Paul will remain as an advisor
to our Company going forward, and we wish him great success in his
future endeavors."
"I came to Taomee with passion for its strategic direction and I
will leave with even greater confidence in the Company's
opportunity to be a leader in children's entertainment industry.
The Company is well positioned for continued success" said Mr.
Paul Keung, chief finance officer of
Taomee.
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 and impairment charges from net income attributable to
the Company's shareholders and from the calculation of earnings per
ADS. 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 and impairment
charges 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
7:00 a.m. ET (New York) on Wednesday,
March 12, 2014 (which is 7:00
p.m. in China on Wednesday,
March 12, 2014). A brief presentation to accompany the
conference call will be available on the Company's IR website
(http://ir.taomee.com/phoenix.zhtml?c=243417&p=irol-reportsannual)
before the call.
The dial-in details for the live conference call are:
Conference
ID:
|
26358515
|
U.S.
toll-free:
|
+1-866-519-4004
|
Hong Kong
toll-free:
|
800-930-346
|
International:
|
+65-6723-9381
|
China
Mainland:
|
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://www.media-server.com/m/p/3rzog89v. A telephone replay of the
call will be available after the conclusion of the conference call
at 10:59 a.m. ET on March 12, 2014 through 10:59 a.m. ET, March 19,
2014. The dial-in details for the telephone replay
are:
Conference
ID:
|
26358515
|
International:
|
+612-8199-0299
|
China:
|
400-6322-162
|
About Taomee Holdings Limited
Taomee Holdings Limited ("Taomee" or "the Company") is
China's leader in children's
entertainment and media. Its award winning content offerings are
both engaging and educational, endearing it to children, as well as
to parents and teachers. The Company was founded in 2007 with the
mission to bring joy and inspiration to children. Its popular
character franchises, including SEER and MOLE'S WORLD, are
distributed online via virtual worlds, web games and mobile
applications, as well as through traditional media, including
animated box office films, TV series, books and consumer products,
most notably interactive toys and trading cards. Its online
community regularly achieves top search ranking in China, Hong
Kong and Taiwan. Taomee has
been consistently recognized for its leadership and innovative
contributions to the children's market, including accolades from
China's Ministry of Culture and
the China Animation Association.
For more information, please visit:
http://www.taomee.com/en_taomee.html
- 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 annual report on Form 20-F and other
documents filed with the U.S. Securities and Exchange Commission..
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.
Taomee Holdings
Limited - Unaudited Consolidated Balance Sheets
|
|
|
|
|
|
In
USD
|
|
In
USD
|
|
December
31
|
|
December
31
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
114,250,772
|
|
$
118,570,672
|
Short term
investment
|
2,992,343
|
|
-
|
Accounts
receivable
|
2,387,747
|
|
2,371,060
|
Inventory
|
196,757
|
|
41,316
|
Income tax
recoverable
|
402,460
|
|
49,956
|
Due from related parties
|
2,242,382
|
|
893,020
|
Prepayments and other current assets
|
2,904,695
|
|
2,071,509
|
Deferred tax assets, current
|
4,166,088
|
|
2,969,896
|
Total current
assets
|
129,543,244
|
|
126,967,429
|
|
|
|
|
Investments in equity
investees
|
13,759,719
|
|
8,262,077
|
Property and
equipment, net
|
1,840,419
|
|
1,305,721
|
Acquired intangible
assets
|
1,252,572
|
|
1,664,763
|
Other
assets
|
4,504,762
|
|
1,557,532
|
TOTAL
ASSETS
|
$
150,900,716
|
|
$
139,757,522
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
1,549,908
|
|
$
434,626
|
Advance from customers
|
6,960,857
|
|
8,142,177
|
Due to related parties
|
369,983
|
|
89,728
|
Deferred revenue
|
12,340,821
|
|
12,061,510
|
Deferred tax liabilities, current
|
1,758,134
|
|
13,473
|
Accrued expenses and other current liabilities
|
6,279,858
|
|
5,265,461
|
Total current
liabilities
|
29,259,561
|
|
26,006,975
|
|
|
|
|
Equity
|
|
|
|
Taomee Holdings
Limited shareholders' equity
|
|
|
|
Ordinary shares
($0.00002 par value; 875,000,000 shares
authorized; 736,648,732 and 741,126,859 shares
issued;
732,409,792 and 735,913,039 outstanding as of
December 31,
2012 and 2013, respectively)
|
14,823
|
|
14,733
|
Treasury stock
|
(1,198,904)
|
|
(747,359)
|
Additional paid-in capital
|
73,757,483
|
|
72,437,283
|
Retained earnings
|
44,566,187
|
|
39,412,717
|
Accumulated other comprehensive income
|
4,342,755
|
|
2,555,570
|
Taomee Holdings
Limited shareholders' equity
|
121,482,344
|
|
113,672,944
|
Non-controlling
interests
|
158,811
|
|
77,603
|
Total
equity
|
$
121,641,155
|
|
$
113,750,547
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
150,900,716
|
|
$
139,757,522
|
Taomee Holdings
Limited - Unaudited Consolidated Statements of
Operations
|
|
|
|
|
|
In USD, except for
share data
For three months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2013
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
Online business, net
|
|
$
8,250,969
|
|
$
10,260,703
|
|
$
6,268,344
|
Offline business, net
|
|
2,689,419
|
|
5,518,261
|
|
1,201,174
|
Total net
revenues
|
|
10,940,388
|
|
15,778,964
|
|
7,469,518
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
|
|
Online business
|
|
(2,037,443)
|
|
(2,089,815)
|
|
(1,632,259)
|
Offline business
|
|
(894,106)
|
|
(2,457,707)
|
|
(370,939)
|
Total cost of
services
|
|
(2,931,549)
|
|
(4,547,522)
|
|
(2,003,198)
|
|
|
|
|
|
|
|
Gross
profit
|
|
8,008,839
|
|
11,231,442
|
|
5,466,320
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
Product development
|
|
(3,713,467)
|
|
(3,568,462)
|
|
(2,695,542)
|
Sales and marketing
|
|
(2,411,269)
|
|
(2,925,398)
|
|
(2,066,303)
|
General and administrative
|
|
(3,345,688)
|
|
(3,820,463)
|
|
(2,198,155)
|
Impairment of intangible assets
|
|
(180,263)
|
|
-
|
|
-
|
Other operating income
|
|
3,703,897
|
|
808,719
|
|
2,763,137
|
Total operating
expenses
|
|
(5,946,790)
|
|
(9,505,604)
|
|
(4,196,863)
|
|
|
|
|
|
|
|
Profit from
operations
|
|
2,062,049
|
|
1,725,838
|
|
1,269,457
|
|
|
|
|
|
|
|
Interest income,
net
|
|
632,310
|
|
906,470
|
|
672,226
|
Other income,
net
|
|
275,363
|
|
174,894
|
|
563,319
|
Impairment loss on
long-term investments
|
|
(370,407)
|
|
-
|
|
-
|
Income before
income taxes and
share of profit in equity method
investments
|
|
2,599,315
|
|
2,807,202
|
|
2,505,002
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(996,509)
|
|
(313,048)
|
|
(366,949)
|
|
|
|
|
|
|
|
Share of profit
(loss) in equity method investments
|
|
(186,012)
|
|
(71,459)
|
|
113,437
|
Net
income
|
|
1,416,794
|
|
2,422,695
|
|
2,251,490
|
|
|
|
|
|
|
|
Less: Net (loss)
profit attributable to
non-controlling interest
|
|
(27,590)
|
|
19,586
|
|
(1,376)
|
|
|
|
|
|
|
|
Net income
attributable to holders of
ordinary shares
|
|
$
1,444,384
|
|
$
2,403,109
|
|
$
2,252,866
|
Earnings per
ADS
|
|
|
|
|
|
|
-Basic
|
|
$
0.04
|
|
$
0.07
|
|
$
0.06
|
-Diluted
|
|
$
0.04
|
|
$
0.06
|
|
$
0.06
|
Weighted average
number of shares used in calculation
|
|
|
|
|
|
|
- Basic
|
|
735,651,537
|
|
733,988,549
|
|
733,212,007
|
- Diluted
|
|
747,030,939
|
|
745,799,224
|
|
748,172,541
|
Weighted average
number of ADS used in calculation
|
|
|
|
|
|
|
- Basic
|
|
36,782,577
|
|
36,699,427
|
|
36,660,600
|
- Diluted
|
|
37,351,547
|
|
37,289,961
|
|
37,408,627
|
Taomee Holdings
Limited - Unaudited Consolidated Statements of
Operations
|
|
|
|
|
|
In USD, except for
share data
For year
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
Online business, net
|
|
$
35,330,152
|
|
$
32,169,495
|
Offline business, net
|
|
13,023,535
|
|
8,038,739
|
Total net
revenues
|
|
48,353,687
|
|
40,208,234
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
Online business
|
|
(7,643,598)
|
|
(6,949,772)
|
Offline business
|
|
(5,620,619)
|
|
(3,048,618)
|
Total cost of
services
|
|
(13,264,217)
|
|
(9,998,390)
|
|
|
|
|
|
Gross
profit
|
|
35,089,470
|
|
30,209,844
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
Product development
|
|
(13,885,922)
|
|
(12,317,528)
|
Sales and marketing
|
|
(9,446,025)
|
|
(9,966,282)
|
General and administrative
|
|
(13,095,086)
|
|
(10,077,739)
|
Impairment of intangible assets
|
|
(1,046,173)
|
|
-
|
Other operating income
|
|
5,708,455
|
|
5,511,806
|
Total operating
expenses
|
|
(31,764,751)
|
|
(26,849,743)
|
|
|
|
|
|
Profit from
operations
|
|
3,324,719
|
|
3,360,101
|
|
|
|
|
|
Interest income,
net
|
|
2,931,511
|
|
2,646,967
|
Other income,
net
|
|
770,807
|
|
858,869
|
Impairment loss on
long-term investment
|
|
(370,407)
|
|
-
|
Income before
income taxes and share of profit in equity
method investments
|
|
6,656,630
|
|
6,865,937
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(1,419,063)
|
|
854,904
|
|
|
|
|
|
Share of (loss)
profit in equity method investments
|
|
(80,024)
|
|
1,139,650
|
Net
income
|
|
5,157,543
|
|
8,860,491
|
|
|
|
|
|
Less: Net profit
(loss) attributable to non-controlling interests
|
|
4,073
|
|
(1,376)
|
|
|
|
|
|
Net income
attributable to holders of ordinary shares
|
|
$
5,153,470
|
|
$
8,861,867
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
-Basic
|
|
$
0.14
|
|
$
0.24
|
-Diluted
|
|
$
0.14
|
|
$
0.24
|
|
|
|
|
|
Weighted average
number of shares used in calculation
|
|
|
|
|
- Basic
|
|
733,322,620
|
|
731,303,362
|
- Diluted
|
|
746,384,929
|
|
753,533,499
|
Weighted average
number of ADS used in calculation
|
|
|
|
|
- Basic
|
|
36,666,131
|
|
36,565,168
|
- Diluted
|
|
37,319,246
|
|
37,676,675
|
Taomee Holdings
Limited - Unaudited Consolidated Other Comprehensive
Income
|
|
|
|
|
|
In
USD, For three months
ended
|
|
December
31,
2013
|
|
September
30,
2013
|
|
December
31,
2012
|
Net income
|
$
1,416,794
|
|
$
2,422,695
|
|
$
2,251,490
|
Other comprehensive
income/(loss), net of tax
|
|
|
|
|
|
Foreign currency
translation adjustments
|
524,181
|
|
294,798
|
|
470,111
|
Comprehensive
income
|
1,940,975
|
|
2,717,493
|
|
2,721,601
|
Comprehensive
income/(loss) attributable to noncontrolling interest
|
(27,590)
|
|
19,586
|
|
(1,376)
|
Comprehensive income
attributable to Taomee Holdings Limited
|
1,968,565
|
|
2,697,907
|
|
2,722,977
|
|
|
|
|
|
|
|
In
USD, For the year
ended
|
|
December
31,
2013
|
|
December
31,
2012
|
Net income
|
$
5,157,543
|
|
$
8,860,491
|
Other comprehensive
income/(loss), net of tax
|
|
|
|
Foreign currency
translation adjustments
|
1,787,185
|
|
189,354
|
Comprehensive
income
|
6,944,728
|
|
9,049,845
|
Comprehensive
income/(loss) attributable to noncontrolling interest
|
4,073
|
|
(1,376)
|
Comprehensive income
attributable to Taomee Holdings Limited
|
6,940,655
|
|
9,051,221
|
|
|
|
|
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,
|
|
|
2013
|
|
2013
|
|
2012
|
Reconciliation
from Non-GAAP measures
to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to
holders of ordinary shares
|
|
$
2,635,546
|
|
$
2,883,239
|
|
$
2,730,391
|
Share-based
compensation
|
|
(640,492)
|
|
(480,130)
|
|
(477,525)
|
Impairment of
intangible assets
|
|
(180,263)
|
|
-
|
|
-
|
Impairment of
long-term investments
|
|
(370,407)
|
|
-
|
|
-
|
GAAP net income
attributable to holders of ordinary shares
|
|
$
1,444,384
|
|
$
2,403,109
|
|
$
2,252,866
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
|
|
|
|
|
|
-Basic
|
|
$
0.07
|
|
$
0.08
|
|
$
0.07
|
-Diluted
|
|
$
0.07
|
|
$
0.08
|
|
$
0.07
|
|
|
|
|
|
|
In USD, except for
share data
|
|
|
For the year
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
Reconciliation
from Non-GAAP measures
to GAAP measures
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to
holders of ordinary shares
|
|
$
8,631,924
|
|
$
11,068,347
|
Share-based
compensation
|
|
(2,061,874)
|
|
(2,206,480)
|
Impairment of
intangible assets
|
|
(1,046,173)
|
|
-
|
Impairment of
long-term investments
|
|
(370,407)
|
|
-
|
GAAP net income
attributable to holders of
ordinary shares
|
|
$
5,153,470
|
|
$
8,861,867
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
|
|
|
|
-Basic
|
|
$
0.24
|
|
$
0.30
|
-Diluted
|
|
$
0.23
|
|
$
0.29
|
SOURCE Taomee Holdings Limited