NEW YORK, May 15, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), a national Video On Demand (VOD) platform in China, announced today its operating results for the three-month period ending March 31, 2013 (a full copy of its quarterly report on Form 10-Q will also be posted at www.sec.gov). Chairman & CEO Shane McMahon and President & CFO Marc Urbach will host an investor conference call and update on May 31 at 10:30 a.m. ET to discuss the Company's recent operating results. The conference call dial-in number is 800-741-4871.
Shane McMahon, Chairman and CEO of YOU On Demand, commented, "The first quarter of 2013 marked a milestone for YOU On Demand as we officially launched our business on the YOU On Demand platform. Over the past two years we have focused on putting three critical pillars of our business in place. The first goal was to secure a national operating license throughout China. We accomplished that with the signing of a 20-year exclusive license with China Home Cinema. Our second objective was to license a wide range of premium content from Hollywood studios, which we accomplished by signing content deals with Warner Bros., Disney, Paramount Pictures, NBCUniversal, Lionsgate, Magnolia Pictures, Miramax and others, as well as popular Chinese content providers like CHC. Third, we secured key distribution relationships with leading cable, IPTV and OTT (Over-The-Top) providers, and are in advanced discussions to further increase distribution for 2013 and beyond.
"We are pleased with the performance of the YOU On Demand infrastructure during this critical time in our Company's history. We have been taking a hard look at the relative initial success of certain cable providers and are using a 'best-practices' approach to fine-tune our platform and marketing strategy to enhance the results with those cable operators where we got off to a comparatively slower start.
"Looking ahead, we are focused on growing revenue, while keeping a sharp eye on operating expenses. We have a range of exciting initiatives that include new distribution platforms and additional content that should benefit our 2013 and future results. We remain committed to supporting our studio and distribution partners and working in unison to develop and deliver products that live up to the consumers' exacting demands," concluded Mr. McMahon.
First quarter operating results
Marc Urbach, YOU On Demand's President & CFO, commented, "As we have now fully transitioned our business and focus to being the leading national Video On Demand platform in China, our reported Q1 financial results should not be viewed as representative of our going-forward growth business. Looking ahead, our focus will be to report results that are reflective of the performance of our YOU On Demand VOD platform."
Revenue for the quarter ended March 31, 2013 fell to $1.3 million, from $2.0 million from the comparable quarter in 2012, while total operating expenses declined by 27.3% from $4.4 million in Q1 2012 to $3.2 million in Q1 2013. This led to an improvement in net operating results, from a loss of $4.8 million in Q1 2012, to a loss of $3.7 million in Q1 2013, resulting in an Q1 2013 EPS loss of $0.23 per share, compared to a loss of $0.40 in Q1 2012.
Cash and cash equivalents decreased from $4.4 million at December 31, 2012, to $2.1 million at March 31, 2013.
It is important to note that YOU On Demand's financial results for the prior-year quarter mainly reflect the operations of its legacy business (Jinan Broadband & Shandong Media). Current quarter results do not show contributions from Shandong Media, as those results have been deconsolidated as of July 1, 2012 and from July 1, 2012 on are being accounted for under the equity method.
About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD) is a national Video On Demand platform in China. The Company offers premium content, including leading Hollywood and China-produced movie titles, to customers across China through its Transactional Video On Demand (TVOD), Subscription Video On Demand (SVOD) and Near Video On Demand (NVOD) services. YOU On Demand has secured alliances with leading global media operators and content developers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.
YOU On Demand currently has content deals in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, Universal Pictures, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Robert Rinderman or Norberto Aja
YOU On Demand
JCIR – Investor Relations/Corporate Communications
- Financial Tables Follow -
YOU On Demand Holdings, Inc. and Its Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Cost of revenue
Gross (loss) profit
Selling, general and administrative expenses
Depreciation and amortization
Total operating expense
Loss from operations
Interest & other income / (expense)
Change in fair value of warrant liabilities
Change in fair value of contingent consideration
Loss on investment in unconsolidated entities
Net loss before income taxes and noncontrolling interest
Income tax benefit
Plus: Net loss attributable to noncontrolling interests
Net loss attributable to YOU On Demand shareholders
Net income (loss) per share
Weighted average shares outstanding
*Includes Shandong Media which was deconsolidated effective July, 1, 2012
YOU On Demand Holdings, Inc. and Its Subsidiaries
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Marketable equity securities, available for sale
Licensed content, current
Other current assets
Total current assets
Property and equipment, net
Licensed content, noncurrent
Intangible assets, net
Investment in unconsolidated entities
LIABILITIES AND EQUITY
Accrued expenses and liabilities
Payable to Jinan Parent
Deferred license fees, current
Other current liabilities
Contingent purchase price consideration liability, current
Convertible promissory note
Total current liabilities
Deferred license fees, noncurrent
Contingent purchase price consideration liability
Deferred tax and uncertain tax position liabilities
Commitments and Contingencies
Convertible redeemable preferred stock, $.001 par value; 50,000,000
Series A - 7,000,000 shares issued and outstanding, liquidation preference
of $3,500,000 at March 31, 2013 and December 31, 2012, respectively
Series B - 0 and 7,866,800 shares issued and outstanding, liquidation preference
of $0 and $3,933,400 at March 31, 2013 and December 31, 2012, respectively
Series C - 250,000 shares issued and outstanding, liquidation preference
of $1,000,000 at March 31, 2013 and December 31, 2012, respectively
Common stock, $.001 par value; 1,500,000,000 shares authorized, 14,819,691 and 13,742,394 shares issued at March 31, 2013 and December 31, 2012, respectively
Additional paid-in capital
Accumulated other comprehensive income
Total YOU On Demand equity
Total liabilities and equity
SOURCE YOU On Demand Holdings, Inc.