YOU On Demand Reports 2013 Q3 Results - Management Hosting Investor Call Today at 4:30pm ET - PR Newswire NEW YORK, Nov. 14, 2013 NEW YORK, Nov. 14, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), a leading multi-platform entertainment and Video On Demand (VOD) company in China, announced today its unaudited operating results for the three-month period ended September 30, 2013 (a full copy of its quarterly report on Form 10-Q will also be posted at www.sec.gov). Conference Call: Chairman Shane McMahon and Chief Financial Officer Marc Urbach are hosting a conference call today beginning at 4:30p.m.ET (1:30p.m.PT). The dial-in numbers are (800)621-4410 or (+1)(303)223-2680 (international callers). On November 5 (subsequent to the close of the 2013 third quarter), the Company announced that C Media Limited, a leading China-based mobile video service provider, raised its aggregate strategic investment in YOU On Demand to $6.0 million USD, with an additional $2.0 million USD Convertible Bridge Note financing. In addition, C Media and YOU On Demand jointly agreed to extend C Media's Phase 2 investment deadline – for up to $10.0 million USD of additional capital – to December 4, 2013. As previously disclosed in early July, C Media had made an initial $4.0 million USD investment in YOU On Demand. In addition and also subsequent to quarter-end, the Company forged a mobile distribution agreement with Huawei, a leading global information and communications technology (ICT) solutions provider and the third largest global smartphone manufacturer. Per the agreement, Huawei is offering its mobile customers feature films through YOU On Demand's newly launched mobile application (App), YOU Cinema. The YOU Cinema App is now coming pre-loaded on Huawei Mate smartphones featuring various Hollywood titles. Shane McMahon, Chairman of YOU On Demand, commented, "C Media's strategic investment, in multiple tranches, as well as our new mobile content distribution agreement with Huawei via the YOU Cinema App, are milestones for our organization. Partnering with these two respected China-based organizations provides us with the requisite resources to continue YOU On Demand's rapid expansion, awareness and brand recognition across multiple distribution platforms, especially in the mobile space. We also plan to deploy a portion of C Media's investment in further diversifying our array of entertainment content and continue building YOU On Demand's multi-platform brand." YOD Q3 2013 Operating Results Marc Urbach, YOU On Demand's President & CFO, commented, "We are delighted with the very strong relationship YOD has been developing with the C Media team over the past several months and we look forward to achieving additional milestones as defined in our business plan in the coming months, specifically with the financial and technological backing of C Media. We have been strengthening our balance sheet in recent quarters, reflecting their growing capital investment, plus the additional $4.7 million cash infusion we recently received following our divestiture of the non-core Jinan Broadband assets." Revenue for the quarter ended September 30, 2013 amounted to $0.1 million, while total operating expenses declined approximately 35% to $2.0 million. This lower cost base helped lead to a more than 30% reduction in the Company's operating loss, to $2.6 million in Q3. A one-time $5.6 million gain on the sale of YOD's non-core Jinan Broadband assets resulted in net income of $3.0 million, or diluted EPS of $0.14 per share – based on 15.6 million weighted average shares outstanding at quarter-end. The cash and cash equivalents balance at September 30, 2013 was $1.2 million, but this does not reflect the additional $2.0 million infusion from C Media on November 5, 2013, nor the remaining cash balance payment received from the sale of the legacy Jinan Broadband assets on November 1, 2013. About YOU On Demand Holdings, Inc. (www.yod.com) YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment company delivering premium content, including leading Hollywood and China-produced movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The Company has secured alliances with leading global media operators and content developers. YOU On Demand has content distribution agreements in place with many ofHollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers. 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. 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. CONTACT: Jason Finkelstein Robert Rinderman or Norberto Aja YOU On Demand JCIR – Investor Relations/Corporate Communications 212-206-1216 212-835-8500 firstname.lastname@example.org YOD@jcir.com @youondemand - Financial Tables Follow - YOU On Demand Holdings, Inc. and Its Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 95,295 $ 4,176 $ 146,852 $ 1,699,702 Cost of revenue 712,327 714,250 2,350,931 2,739,032 Gross loss (617,032) (710,074) (2,204,079) (1,039,330) Operating expense: Selling, general and 1,658,255 2,331,402 5,558,195 7,130,959 administrative expenses Professional 147,091 138,063 772,403 1,078,855 fees Depreciation and 154,719 533,557 620,946 1,625,146 amortization Impairments of long-lived - - 311,249 - assets Total operating 1,960,065 3,003,022 7,262,793 9,834,960 expense Loss from (2,577,097) (3,713,096) (9,466,872) (10,874,290) operations Interest & other income / (expense) Interest income 611 360 1,185 2,763 Interest (30,429) (27,802) (90,067) (47,699) expense Stock purchase - - - (43,748) right Change in fair value of (6,840) (636,308) (37,130) (636,308) warrant liabilities Change in fair value of (15,649) 537,784 (99,343) 74,351 contingent consideration Gain on investment in 8,592 64,797 7,873 52,291 unconsolidated entities Loss on write-off of - - - (473,698) uncollectible loans Gain on deconsolidation - 141,814 - 141,814 of Shandong Media Other (11,827) (1,473) 58,769 (60,035) Net loss before income taxes and (2,632,639) (3,633,924) (9,625,585) (11,864,559) non-controlling interest Income tax 21,168 96,026 82,129 266,126 benefit Net loss from continuing (2,611,471) 3,537,898 (9,543,456) (11,598,433) operations Net gain (loss) from discontinued operations (including gain on disposal of 5,589,872 (899,529) 5,255,474 (1,873,947) $5,616,269) Net income (loss) 2,978,401 (4,437,427) (4,287,982) (13,472,380) Plus: Net loss attributable to non-controlling 193,512 389,274 834,685 1,482,536 interests Net income (loss) attributable to YOU On Demand 3,171,913 (4,048,153) (3,453,297) (11,989,844) shareholders Dividends on (1,029,829) - (1,029,829) - preferred stock Net income (loss) attributable to YOU On $ 2,142,084 $ (4,048,153) $ (4,483,126) $ (11,989,844) Demand common shareholders Basic earnings per share Loss from continuing $ (0.22) $ (0.32) $ (0.65) $ (1.02) operations Gain (loss) from 0.36 (0.04) 0.35 (0.09) discontinued operations Basic earnings (loss) per $ 0.14 $ (0.36) $ (0.30) $ (1.11) shares Diluted earnings (loss)per share Loss from continuing $ (0.22) $ (0.32) $ (0.65) $ (1.02) operations Gain (loss) from 0.36 (0.04) 0.35 (0.09) discontinued operations Diluted earnings (loss) $ 0.14 $ (0.36) $ (0.30) $ (1.11) per share Weighted average shares outstanding Basic 15,553,097 11.293,895 15,034,841 10,765,931 Diluted 15,553,097 11,293,895 15,034,841 10,765,931 You On Demand Holdings, Inc. and Its Subsidiaries CONSOLIDATED BALANCE SHEETS September 30, December 31, 2013 2012 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,214,490 $ 3,277,891 Marketable equity securities, available for 1,714 2,229 sale Accounts receivable, net 111,943 - Licensed content, current 737,017 681,457 Prepaid expenses 279,452 412,669 Note receivable, sale of Jinan Broadband 3,911,088 - Other current assets 4,684 135,486 Current assets of discontinued operations - 1,498,852 Total current assets 6,260,388 6,008,584 Property and equipment, net 566,877 729,763 Licensed content, noncurrent 200,227 530,367 Intangible assets, net 2,705,635 3,416,858 Goodwill 6,105,478 6,105,478 Investment in unconsolidated entities 681,304 655,834 Non-current assets of discontinued operations - 5,011,161 Total assets $ 16,519,909 $ 22,458,045 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 1,575,448 $ 885,366 Accrued expenses and liabilities 1,161,910 953,134 Deferred license fees, current 988,401 - Other Current liabilities 36,429 708,367 Contingent purchase price consideration 426,124 368,628 liability, current Convertible promissory note 3,000,000 3,000,000 Warrant liabilities 915,510 878,380 Current liabilities of discontinued operations - 5,197,450 Total current liabilities 8,103,822 11,991,325 Deferred license fees, concurrent - 460,547 Contingent purchase price consideration - 368,628 liability Deferred tax liability 154,946 237,075 Non-current liabilities of discontinued - 68,774 operations Total liabilities 8,258,768 13,126,349 Commitments and Contingencies Convertible redeemable preferred stock, $.001 par value; 50,000,000 shares authorize Series A - 7,000,000 shares issued and outstanding, liquidation preference of $3,500,000 at September 30, 2013 and December 31, 2012, respectively 1,261,995 1,261,995 Series B - 0 and 7,866,800 shares issued and outstanding, liquidation preference of $0 and $3,933,400 at September 30, 2013 and December 31, 2012, respectively - 3,223,575 Series C - 87,500 and 250, 00 shares issued and outstanding, liquidation preference of $350,000 and $1,000,000 at September 30, 2013 and December 31, 2012, respectively 219,754 627,868 Series D 4% - 2,285,714 and 0 shares issued and outstanding, liquidation preference of $4,000,000 and $0 at September 30, 2013 and December 31, 2012 3,711,794 - Equity: Common stock, $.001 par value; 1500,000,000 shares authorized, 15,793,314 and 13,742,394 shares issued at September 30, 2013 and December 31, 2012, respectively 15,793 13,742 Additional paid-in capital 67,438,268 62,388,502 Accumulated deficit (62,477,818) (58,841,664) Accumulated other comprehensive (loss) income (737,100) 604,632 Total YOU On Demand equity 4,239,143 4,165,212 Non-controlling interest (1,171,545) 53,046 Total equity 3,067,598 4,218,258 Total liabilities and equity $ 16,519,909 $ 22,458,045 SOURCE YOU On Demand Holdings, Inc. Website: http://www.yod.com
YOU On Demand Reports 2013 Q3 Results
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