Tiger Media Reports Full Year of 2013 Results
4:41 PM ET 3/31/14 | Dow Jones
Tiger Media Reports Full Year of 2013 Results SHANGHAI--(BUSINESS WIRE)--March 31, 2014--
Tiger Media, Inc. ("Tiger Media" or the "Company") (NYSE MKT: IDI), a nationwide Shanghai-based multi-platform media company, today reported audited financial results for the full year ended December 31, 2013. The Company also announced today that it had filed its annual report for the year ended December 31, 2013 on Form 20-F with the U.S. Securities and Exchange Commission.
Full Year 2013 Financial Highlights
-- Adjusted net loss (non-GAAP) was $2.2 million in 2013 compared to an
adjusted net loss (non-GAAP) of $8.4 million in 2012.
-- Net loss was $3.9 million from ordinary operations in 2013, compared
to a net profit of $8.7 million in 2012 that was mainly as a result of
a $9.4 million net gain from the disposal of subsidiaries.
-- Raised a total of $4.1 million from proceeds received as a result of
the exercise of warrants to purchase 3.3 million of the Company's
ordinary shares with an exercise price of $1.25 per share.
Peter W. H. Tan, Chief Executive Officer of Tiger Media, remarked, "Since the launch in late June 2013 of our iScreen Outdoor LCD business at prominent entry points of high end shopping malls and commercial centers in Shanghai, we recorded revenue of $2.4 million through the end of 2013 in advertisement contracts for the network from major domestic and international advertisers. During 2014 and beyond, we hope to expand our network to other Tier I and Tier II cities throughout China, though the pace of expansion will depend on the revenue growth and income from the Shanghai iScreen Outdoor LCD concession. In an effort to mitigate the risks associated with early stage development and conserves the Company's internal cash resources, we intend to focus our expansion efforts towards working with local partners in each of the targeted cities rather than through direct acquisition and ownership of the equipment and concessions. Many of the iScreen outdoor locations now have Wi-Fi and we are developing interactive client driven content and mobile applications to provide an even wider consumer reach. We currently have developed over 100 screens at over 20 commercial compounds in key CBDs of Shanghai and will continue to increase the network coverage in 2014.
"We have a number of goals and objectives for 2014 including:
-- Expanding our iScreen Outdoor LCD concessions in Shanghai and other
Chinese cities;
-- Refocusing our efforts at Home Inns locations;
-- Continuing to be opportunistic and pursue complementary or strategic
acquisitions which could provide significant opportunities to diversify
and drive our growth; and
-- Hire a new senior level finance employee expected to begin in April
2014."
Earnings Conference Call Announcement
Tiger Media will host an earnings conference call on Tuesday, April 1, 2014 at 8:30 a.m. U.S. Eastern Time (8:30 p.m. Beijing / Hong Kong Time).
Dial-in details for the earnings conference call are as follows:
Participant Dial-In Numbers:
TOLL-FREE: 1-877-941-8416
TOLL/INTERNATIONAL: 1-480-629-9808
CHINA TOLL: 86-400-628-0671
TAIWAN TOLL: 886-2-2162-6507
HONG KONG TOLL-FREE: 800-908-530
**Participants will ask for the Tiger Media, Inc. Conference Call/Conference ID 4676810.
Full Year 2013 Financial Results
Net Revenues & Gross Profit
For the full year 2013, the revenue recognized was $2.9 million, almost all of which were attributable to the launch, in late June 2013, of our new iScreen Outdoor LCD screens and outdoor billboard businesses in Shanghai, as compared to revenue of $0 from continuing operations for the year ended December 31, 2012.
Gross profit was $1.1 million with the gross margin rate of 39%. The cost of revenue was mainly due to the expense of advertising space lease costs and depreciation expenses incurred by outdoor LCD equipment.
Selling, General and Administrative expenses
Total selling, general and administrative expenses for the year ended December 31, 2013 were $5.2 million, compared to $3.6 million for the year ended December 31, 2012, which mainly consisted of share-based compensation of $1.6 million, professional fees of $1.0 million and salaries of $1.2 million.
Loss from Continuing Operations
The loss from continuing operations for the year ended December 31, 2013 was $3.9 million compared to a loss of $0.7 million for the year ended December 31, 2012, mainly as a result of the $1.6 million share-based compensation expense in 2013 and a $3.0 million extinguishment of the acquisition payable in 2012.
Profit/(Loss) from Discontinued Operations
The profit from discontinued operations for the year ended December 31, 2012 was $9.4 million, mainly as a result of the $16.2 million gain on the disposal of subsidiaries, net of tax. There were no discontinued operations for the year ended December 31, 2013.
Net Profit/(loss)
As a result of the foregoing, we had a net loss of $3.9 million for the year ended December 31, 2013, as compared to a net profit of $8.7 million for the year ended December 31, 2012.
Adjusted net profit/(loss)
Adjusted net loss (non-GAAP), excluding non-cash items, was $2.2 million in 2013 compared to an adjusted net loss (non-GAAP) of $8.4 million in 2012 mainly due to a greater loss from subsidiaries. Please refer to the non-GAAP reconciliation table provided at the end of the release for a year-over-year comparison of non-cash adjustments.
For the year ended December 31, 2013, net cash used in operating activities totaled $5.1 million, with net cash used in investing activities of $0.7 million, offset by $4.1 million in net cash provided in financing activities.
For the three months ended December 31, 2013, the revenue recognized was $2.0 million with a sales margin of $1.0 million. The loss for the last quarter of 2013 was $1.2 million, and after deducting share-based compensation of $1.4 million, the Company achieved net profit of $0.2 million.
As of December 31, 2013, the Company had $5.6 million in cash and cash equivalents. Stockholder equity was approximately $10.6 million and there were approximately 35.6 million common shares outstanding.
About Tiger Media
Tiger Media is a leading nationwide multi-platform media company in China which provides advertising services in the out-of-home advertising industry, including iScreen Outdoor LCD screens, billboards and street furniture. Tiger Media's network of street level LCD screen displays, which captivate eye-level awareness, is complemented by outdoor billboards which are mostly built on rooftops with good visibility from far distances. Tiger Media's network attracts advertising clients from a wide range of industries including telecommunications, insurance and banking, automobile, electronics and fast moving consumer goods. Learn more at www.tigermedia.com.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts, including statements about Tiger Media's beliefs and expectations, may constitute forward-looking statements as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "confident" and similar statements. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations.
Potential risks and uncertainties include, whether we will be able to expand our iScreen Outdoor LCD network to other Tier I and Tier II cities; whether we will be able to find suitable partners in each of the targeted cities; whether we can develop interactive client driven content and mobile applications to provide an even wider consumer reach; whether we can refocus our efforts at Home Inns locations; whether a new senior level finance employee will join the Company in April 2014; whether we can continue to be opportunistic and pursue complementary or strategic acquisitions which could provide significant opportunities to diversify and drive our growth; and whether we have sufficient liquidity to build and expand our concessions; and the risks that there are uncertainties and matters beyond the control of management, and other risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. Tiger Media cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Tiger Media does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
Reconciliation of the audited number to non-GAAP financial figures
For the year ended For the year ended
December 31, 2012 December 31, 2013
------------------- -------------------
$'000 $'000
Audited profit/(loss) 8,752 (3,935)
Gain from extinguishment of
acquisition consideration
payable (3,026) (99)
Share-based compensation 660 1,648
Amortization on intangible
assets - 199
Loss on abandonment of lease 966 -
Gain on disposal of subsidiaries (16,153) (2)
Loss on disposal of fixed assets 373 6
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March 31, 2014 16:41 ET (20:41 GMT)
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