Bona Reports Fourth Quarter and Full Year 2013 Financial Results

Bona Reports Fourth Quarter and Full Year 2013 Financial Results  BEIJING, Feb. 27, 2014 (GLOBE NEWSWIRE) -- Bona Film Group Limited (Nasdaq:BONA) ("Bona" or the "Company"), a leading film distributor and vertically integrated film company in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2013.  "We delivered solid results in 2013, driven by the theatrical release of 14 films domestically that generated an approximately 10% market share in domestic box office receipts, making us one of the top three domestic non-state-owned film distributors," said Bona founder, Chairman and CEO Mr. Yu Dong. "We are also pleased with the progress we made in our theater segment in 2013, as our greenfield theaters matured and delivered solid results. We opened 2 new movie theaters in 2013, signed contracts to construct 7 new theater projects and reached a few preliminary agreements with first-tier property developers on exciting future projects."  "2013 also marked a time when we significantly strengthened our corporate structure through the successful launch of the RMB 1 billion Bona Film Investment Fund and the strategic investment in our Company by Fosun Group. These initiatives will help fortify our position in the market and create opportunities for us to leverage in the future."  Fourth Quarter 2013 Financial Summary    *Fourth quarter 2013 net revenues were US$42.8 million, compared with     US$53.2 million in the fourth quarter of 2012.   *Fourth quarter 2013 gross profit was US$16.9 million, compared with     US$10.1 million in the fourth quarter of 2012.   *Fourth quarter 2013 gross margin was 39.5%, compared with 19.0% in the     fourth quarter of 2012.   *Fourth quarter 2013 net income attributable to Bona Film Group Limited was     US$0.4 million, or US$0.01 per basic and diluted ADS^1, compared with a     net loss attributable to Bona Film Group Limited of US$(5.4) million, or a     loss of US$(0.09) per basic and diluted ADS, in the fourth quarter of     2012.   *Fourth quarter 2013 non-GAAP net income^2 was US$1.5 million, compared to     a non-GAAP net loss of US$(4.2) million in the fourth quarter of 2012.   *Fourth quarter 2013 adjusted EBITDA, non-GAAP^2, was US$7.0 million,     compared with an adjusted EBITDA loss, non-GAAP, of US$(2.4) million in     the fourth quarter of 2012.   *Cash and cash equivalents, term deposits and restricted cash totaled     US$63.4 million as of December 31, 2013.   *Fourth quarter 2013 cash generated from operating activities totaled     US$9.5 million, compared with cash used in operating activities of US$3.6     million in the fourth quarter of 2012.  Full Year 2013 Financial Summary    *Full year 2013 net revenues were US$149.3 million, compared with US$142.3     million for the full year 2012.   *Full year 2013 gross profit was US$66.5 million, compared with US$56.2     million for the full year 2012.   *Full year 2013 gross margin was 44.5%, compared with 39.5% for the full     year 2012.   *Full year 2013 net income attributable to Bona Film Group Limited was     US$5.7 million, or US$0.09 per basic and diluted ADS, compared with a net     loss attributable to Bona Film Group Limited of US$(1.3) million, or a     loss of US$(0.02) per basic and diluted ADS, for the full year 2012.   *Full year 2013 non-GAAP net income was US$8.5 million, compared with     non-GAAP net income of US$3.2 million for the full year 2012.   *Full year 2013 adjusted EBITDA, non-GAAP, was US$20.4 million, compared     with US$9.1 million for the full year 2012.   *Full year 2013 cash used in operating activities totaled US$21.6 million,     compared with cash used in operating activities of US$9.5 million for the     full year 2012.  Full Year 2013 Business Updates and Recent Highlights    *Distributed and/or invested in a total of 18 films in 2013, 14 of which     were for domestic theatrical distribution and generated a total of RMB 1.3     billion in box office receipts. For the year, Bona's films accounted for     approximately 10% of total domestic box office receipts.   *Distributed three new films theatrically in 4Q 2013 – The White Storm, Red     2 and The Game of Hide and Seek; as well as Out of Inferno,which was     released on September 30^th:     -- Released The White Storm, formerly known as The Cartel War, on November     29, 2013. A crime thriller starring three of Hong Kong's most popular film     stars – Sean Lau, Louis Koo and Nick Cheung, the film has been widely     praised for its high production quality. The White Storm opened the Hong     Kong Asian Film Festival and generated more than RMB 225.3 million in box     office receipts in 2013.     -- Released Hollywood comedic action drama Red 2, starring Bruce Willis,     Helen Mirren, John Malkovich and Anthony Hopkins, on November 15, 2013.     -- Released the low-budget horror/thriller The Game of Hide and Seek on     October 11, 2013.   *Recognized for artistic value: three Bona-invested films were included in     the recently announced list of nominees for the 2014 Hong Kong Film Awards     – The Grandmaster, Unbeatable and The White Storm, which received 14, 11     and 8 nominations, respectively. Also in 2013, Bona distributed films     received 6 awards at the 15^th China Huabiao Awards and top acting awards     at the 16^th Annual Shanghai International Film Festival.   *Launched the Bona Film Investment Fund (the "Film Fund"), an RMB 1 billion     (approximately US$165.2 million) investment vehicle funded through a     partnership with Sequoia Capital Management Ltd. and Noah Holdings Ltd.     The Film Fund considerably enhances Bona's ability to finance the     development and production of its films and TV projects over the next     two-three years.   *Expanded the ownership structure of the Company with an investment by     Fosun Group, which acquired 2,000,000 Bona ordinary shares, representing a     6.4% equity stake. Bona and Fosun are working together to leverage each     other's resources.   *Opened two new theaters in Shandong Zibo and Shenzhen Huangting in 2013,     and signed contracts for seven additional locations, most of which are     expected to open by the end of 2014. Bona owned and operated 22 theaters,     representing 182 screens as of December 31, 2013, compared with 20     theaters, representing 163 screens as of December 31, 2012.   *Distributed two films to date in 1Q 2014 – The Mortal Instruments: City of     Bones and The Man From Macau. The Film Fund made its first investment in     The Man From Macau, and the film has already generated roughly RMB 500     million in domestic box office receipts.   *Major films undergoing post-production in 1Q 2014 include Horseplay, The     White Haired Witch, Overheard 3, Insanity, Sunspot and I Am Somebody.   *Major films undergoing production in 1Q 2014 include The Taking of Tiger     Mountain (formerly referred to as Tracks in the Snowy Forest) and Daydream     Believer.   *Bona is also pursuing the quota application process for two foreign films     – Nonstop and Pompeii.  Fourth Quarter 2013 Financial Results  Net Revenues                       4Q13 4Q12 Y-o-Y% Net Revenues (US$mm) 42.8 53.2 (19.7%)  Net revenues for the fourth quarter of 2013 were US$42.8 million, 19.7% lower than the fourth quarter of 2012. Despite strong box office performance by Bona's films Out of Inferno and The White Storm, net revenues were lower year-on-year because the Company did not release any TV series in the fourth quarter of 2013, compared with sales generated from the Bona TV series The King's Battle in the fourth quarter of 2012.  Net Revenues by Segment Operations              Film         Investment Movie  Talent Intersegment Consolidated             Distribution &           Theater Agency Elimination                             Production Net Revenues from External     26.9         0.3         15.4    0.2    --           42.8 Customers (US$mm) Intersegment Revenues     0.8          3.0         --      --     (3.8)        -- (US$mm) Total Net Revenues     27.7         3.3         15.4    0.2    (3.8)        42.8 (US$mm)  Net revenues from distribution totaled US$27.7 million. During the fourth quarter of 2013, Bona distributed three new films theatrically – Red 2, The White Storm and The Game of Hide and Seek, as well as Out of Inferno, which was released on September 30, 2013.  Net revenues from film investment and production were US$3.3 million, which were mainly derived from the sale of continuous broadcasting rights for several Bona films that were released in the third quarter of 2013 to networks and TV stations.  Net revenues from the movie theater segment totaled US$15.4 million. The Company owned and operated 22 theaters as of December 31, 2013, compared with 20 as of December 31, 2012.  Gross Profit and Gross Margin                      4Q13  4Q12  Y-o-Y% Gross Profit (US$mm) 16.9  10.1  67.2% Gross Margin         39.5% 19.0% --  For the fourth quarter of 2013, gross profit increased to US$16.9 million from US$10.1 million in the fourth quarter of 2012. The year-over-year increase in gross profit was primarily attributable to the strong box office performance of Out of Inferno and The White Storm, compared with lower gross margin in the fourth quarter of 2012 that resulted from the higher acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and the higher impairment of production costs using a discounted cash flow approach, and lower-than-expected box office performance from The Last Tycoon.  Segment Profit^3 and Segment Margin                          Film         Investment  Movie   Talent Consolidated                         Distribution & Production Theater Agency  Segment Profit (US$mm)   8.9          (0.4)        9.0     0.2    17.7 As % of Total Segment    50.3%        (2.1%)       51.0%   0.8%   100.0% Profit Segment Margin           32.0%        (10.8%)      58.5%   100%   41.3%  Segment margin for the film distribution segment decreased to 32.0% in the fourth quarter of 2013 from 43.4% in the fourth quarter of 2012, primarily due to a lower percentage of print and advertising expenses to be withdrawn from film distribution revenue generated from Bona distributed films, in particular Out of Inferno and The White Storm, in the fourth quarter of 2013.  Segment margin from the Company's investment and production business decreased to (10.8)% in the fourth quarter of 2013, compared with segment margin of (2.0)% in the fourth quarter of 2012. The decrease in segment margin in this business was a result of the acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and impairment of production costs using a discounted cash flow approach, and the absence of revenue generated from the investment in TV series in the fourth quarter of 2013, compared with the successful sale of the Bona TV series The King's Battle in the fourth quarter of 2012.  Segment margin from the Company's movie theater business was 58.5% in the fourth quarter of 2013, compared with 56.7% in the fourth quarter of 2012, which is in-line with Bona's expanded theater operations.  Operating Income and Operating Margin                                 4Q13 4Q12    Y-o-Y% Operating Expenses (US$mm)      16.9 18.8    (10.3%) Operating Income (Loss) (US$mm) 3.3  (5.7)   158.6% Operating Margin                7.8% (10.7%) --  Total operating expenses, including participation expenses, general and administrative expenses, and selling and marketing expenses, decreased 10.3% to US$16.9 million from US$18.8 million in the fourth quarter of 2012. The year-over-year decrease in operating expenses was primarily due to a decrease in selling and marketing expenses of print and advertising costs associated with the four films theatrically distributed in the fourth quarter of 2013, compared with three films and one TV series released in the fourth quarter of 2012.  Fourth quarter 2013 operating margin was 7.8% compared to (10.7)% in the fourth quarter of 2012. The year-over-year improvement in operating margin was primarily due to the strong performance of Out of Inferno and The White Storm, compared with lower-than-expected box office performance of The Last Tycoon in the fourth quarter of 2012.  Net Income and Net Income Attributable to Bona Film Group Limited per ADS                                                                    4Q13 4Q12 Net Income (Loss) Attributable to Bona Film Group Limited (US$mm)  0.4  (5.4) Net Income (Loss) Attributable to Bona Film Group Limited per      0.01 (0.09) basic and diluted ADS (US$)                                                                                                                                          4Q13 4Q12 Non-GAAP Net Income (Loss) (US$mm)                                 1.5  (4.2) Non-GAAP Net Income (Loss) Attributable to Bona Film Group Limited 0.03 (0.07) per basic and diluted ADS (US$)  Excluding share-based compensation expense of US$1.2 million and US$1.4 million for the fourth quarters of 2013 and 2012, respectively, non-GAAP net income for the fourth quarter of 2013 was US$1.5 million, compared with a non-GAAP net loss of US$(4.2) million in the fourth quarter of 2012.                                   4Q13 4Q12 Adjusted EBITDA, non-GAAP (US$mm) 7.0  (2.4)  Adjusted EBITDA, non-GAAP, in the fourth quarter of 2013 was US$7.0 million, compared with an adjusted EBITDA, non-GAAP, of US$(2.4) million in the fourth quarter of 2012.  Full Year 2013 Financial Results  Net Revenues                       FY13  FY12  Y-o-Y% Net Revenues (US$mm) 149.3 142.3 5.0%  Net revenues for the full year 2013 increased 5.0% year-over-year to US$149.3 million. The increase in net revenues was primarily attributable to an increase in revenues from the Company's movie theater segment and better box office performance by the 14 films theatrically released in 2013, compared with 2012.  Net Revenues by Segment Operations              Film         Investment Movie   Talent Intersegment Consolidated             Distribution &           Theater Agency Elimination                             Production Net Revenues from External     74.6         12.6        61.5    0.6    --           149.3 Customers (US$mm) Intersegment Revenues     2.0          28.4        --      --     (30.4)       -- (US$mm) Total Net Revenues     76.6         41.0        61.5    0.6    (30.4)       149.3 (US$mm)  Net revenues from distribution totaled US$76.6 million in 2013, compared with US$64.1 million in 2012. During 2013, Bona distributed 18 new films domestically. The increase in net revenues from the distribution segment was mainly due to the strong box office performance of the films released in 2013, in particular Unbeatable, My Lucky Star, Out of Inferno, The White Storm, among others.  Net revenues from film investment and production were US$41.0 million in 2013, compared with US$73.7 million in 2012. The decrease was mainly due to the absence of revenue generated from investing in TV series in 2013, compared with the successful sale of the Bona TV series The King's Battle in 2012.  Net revenues from the movie theater segment increased to US$61.5 million in 2013, compared with US$41.7 million in 2012. The increase was primarily a result of the increase in the number of theaters and screens from Bona's strategic expansion efforts.  Top-five Films in Terms of Revenue Contribution  Film Title              Release Date       Box Office                                          RMB (millions) 1. The White Storm      November 29, 2013  225.3 2. Bring Happiness Home January 15, 2013   153.7 3. My Lucky Star        September 17, 2013 134.8 4. Out of Inferno       September 30, 2013 131.4 5. Unbeatable           August 16, 2013    118.0  The top-five films in 2013 contributed US$54.1 million, which includes all revenue streams from Bona's theatrical and non-theatrical releases, or 36.3% of full-year 2013 revenues, compared to the top-five films in 2012, which accounted for 37.4% of full-year revenues.  Gross Profit and Gross Margin                      FY13  FY12  Y-o-Y% Gross Profit (US$mm) 66.5  56.2  18.3% Gross Margin         44.5% 39.5% --  For the full year 2013, gross profit increased to US$66.5 million from US$56.2 million for the full year 2012. The year-over-year increase in gross profit was primarily attributable to strong performance from Bona's films released in 2013 and the expansion of Bona-owned movie theaters.  Segment Profit and Segment Margin                          Film         Investment  Movie   Talent Consolidated                         Distribution & Production Theater Agency  Segment Profit (US$mm)   23.1         8.6          35.5    0.6    67.8 As % of Total Segment    34.0%        12.7%        52.4%   0.9%   100.0% Profit Segment Margin           30.1%        21.1%        57.7%   100.0% 45.4%  Segment margin for the distribution segment decreased to 30.1% in the full year 2013 from 39.2% for the full year 2012, primarily due to a lower percentage of print and advertising expenses to be withdrawn from film distribution revenue generated from Bona distributed films in 2013.  Segment margin from the Company's investment and production business improved to 21.1% for the full year 2013, compared with a segment margin of 8.7% for the full year 2012. The improvement in segment margin for this business was mainly due to the higher acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and the higher impairment of production costs using a discounted cash flow approach, and lower-than-expected box office performance from The Last Tycoon in 2012.  Segment margin from the Company's movie theater business increased to 57.7% for the full year 2013, compared with 56.6% for the full year 2012, which is in-line with Bona's expanded theater operations.  Operating Income and Operating Margin                                 FY13 FY12   Y-o-Y% Operating Expenses (US$mm)      62.9 60.8   3.4% Operating Income (Loss) (US$mm) 8.6  (0.8)  1,241.0% Operating Margin                5.8% (0.5%) --  Total operating expenses, including participation expenses, general and administrative expenses, and selling and marketing expenses, increased 3.4% to US$62.9 million from US$60.8 million for the full year 2012. The year-over-year increase in operating expenses was primarily due to an increase in general and administrative expenses relating to expanding Bona's movie theater segment, partially offset by a decrease in selling and marketing expenses to promote Bona's distributed films.  Full year 2013 operating margin was 5.8% compared to (0.5)% for the full year 2012. The year-over-year improvement in operating margin was primarily due to the strong performance of the films released in the second half of 2013 and the greenfield theaters gradually maturing in 2013.  Net Income and Net Income Attributable to Bona Film Group Limited per ADS                                                                    FY13 FY12 Net Income (Loss) Attributable to Bona Film Group Limited (US$mm)  5.7  (1.3) Net Income (Loss) Attributable to Bona Film Group Limited per      0.09 (0.02) basic and diluted ADS (US$)                                                                                                                                          FY13 FY12 Non-GAAP Net Income (US$mm)                                        8.5  3.2 Non-GAAP Net Income Attributable to Bona Film Group Limited per    0.16 0.06 basic and diluted ADS (US$)  Excluding share-based compensation expense of US$4.0 million and US$4.8 million for the full year 2013 and 2012, respectively, non-GAAP net income for the full year 2013 was US$8.5 million, compared with non-GAAP net income of US$3.2 million for the full year 2012.                                   FY13 FY12 Adjusted EBITDA, non-GAAP (US$mm) 20.4 9.1  Adjusted EBITDA, non-GAAP was US$20.4 million for the full year 2013, compared with adjusted EBITDA, non-GAAP of US$9.1 million for the full year 2012.  Cash and Cash Flow  As of December 31, 2013, Bona had cash, cash equivalents and restricted cash totaling US$63.4 million, compared with US$28.0 million as of December 31, 2012. Net cash used in operating activities for 2013 was approximately US$21.6 million, compared with net cash used in operating activities of US$9.5 million for 2012. The change in cash flow from operations was mainly attributable to the investment in several films released in 2013 or scheduled for release in 2014.  Business Outlook  Based on current market and operating conditions, the Company expects non-GAAP net income for the first quarter of 2014 to be in the range of US$1.0 million to US$1.5 million.  "We have a robust slate of films scheduled for release in 2014, and our business segments are on track to demonstrate progressive growth throughout the year. Our first two film releases, The Mortal Instruments: City of Bones and The Man From Macau, have kicked-off the year in top form, generating strong box office results, particularly during the Chinese New Year season. We expect the Chinese film industry to generate strong box office returns again in 2014, and believe that Bona's solid slate of films and vertically integrated business model make us well positioned to capitalize on this growth in the market," concluded Mr. Yu.  Fourth Quarter and Full Year 2013 Conference Call Details  Bona management will hold the earnings conference call at 8:00 p.m. Eastern Time on Thursday, February 27, 2014 (9:00 a.m. Beijing/Hong Kong Time on Friday, February 28, 2014). Management will discuss results and highlights of the quarter and answer questions from investors.  The dial-in numbers for the earnings conference call are as follows:  U.S. Toll Free: +1-855-500-8701 Hong Kong Toll Free: 800-903-737 China, Domestic: 400-120-0654 International: +65-6723-9385  The conference ID # is 50072564.  A live and archived webcast of the earnings conference call will be available on the IR Calendar page of the Bona investor relations website at http://ir.bonafilm.cn/events.cfm.  About Bona Film Group Limited  Bona Film Group Limited (Nasdaq:BONA) is a leading film distributor in China, with an integrated business model encompassing film distribution, film production, film exhibition and talent representation. Bona distributes films to Greater China, Korea, Southeast Asia, the United States and Europe, invests and produces movies in a variety of genres, owns and operates twenty-two movie theaters and manages a range of talented and popular Chinese artists.  For more information about Bona, please visit http://www.bonafilm.cn.  To be added to Bona's email list to receive Company news, please send your request to bona@tpg-ir.com.  The Bona Film Group Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15750  Forward Looking Statements  This news release may contain certain "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. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.  Non-GAAP Financial Measures  To supplement Bona's consolidated financial results presented in accordance with GAAP, Bona uses the following measures defined as non-GAAP financial measures by the SEC: non-GAAP net income, non-GAAP net income attributable to Bona Film Group Limited per ADS, which exclude share-based compensation expenses, and adjusted EBITDA, non-GAAP, which excludes share-based compensation expenses, interest, taxes, and non-cash depreciation and amortization charges. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, as a substitute for, or to be superior to the financial information prepared and presented in accordance with GAAP. In addition, Bona's definition of non-GAAP net income may be different from the definitions used by other companies, and therefore comparability may be limited.  Bona believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain expenses and expenditures that may not be indicative of its operating performance and a supplemental liquidity measure which is useful for understanding and evaluating the Company's capacity for servicing its debt, and otherwise meeting its cash needs. Adjusted EBITDA, non-GAAP, excludes depreciation and amortization, so it does not reflect any cash requirements for the replacement of the assets, which will often have to be replaced in the future. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and liquidity, and when planning and forecasting future periods. The table appears at the end of this press release has more details on the reconciliations between GAAP financial measures that are comparable to non-GAAP financial measures.  ^1 "ADS" is American depositary share. Each two ADSs represent one ordinary share.  ^2 As used in this press release, non-GAAP net income and non-GAAP net income attributable to Bona Film Group Limited per ADS exclude share-based compensation expenses. Adjusted EBITDA, non-GAAP, excludes share-based compensation expenses, interest, taxes and non-cash depreciation and amortization charges. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Measures" at the end of this press release.  ^3 Segment profit is gross profit less film participation expense by segments for the periods indicated.  BONA FILM GROUP LIMITED Unaudited Condensed Consolidated Statement of Operations (in U.S. dollars, except share data)                                                                                           Three-months ended December Twelve-months ended                            31,                         December 31,                           2013          2012          2013        2012                                                                 Net revenue                42,762,288    53,226,173    149,335,580 142,282,919 Cost of revenue            25,884,572    43,130,900    82,839,980  86,085,046 Gross profit               16,877,716    10,095,273    66,495,600  56,197,873                                                                 Film participation         (781,588)     (436,890)     (1,319,749) 438,636 (income) expenses Sales and marketing        4,142,294     6,174,117     14,374,421  18,490,433 expenses General and administrative 13,530,453    13,083,391    49,853,700  41,890,064 expenses Total operating expenses   16,891,159    18,820,618    62,908,372  60,819,133                                                                 Government subsidies       3,360,670     3,011,685     5,022,424   3,866,700 Operating income (loss)    3,347,227     (5,713,660)   8,609,652   (754,560)                                                                 Interest income            184,211       (10,016)      282,221     246,423 Interest expenses          (48,517)      (178,231)     (1,382,683) (399,319) Exchange gain (loss)       796,203       635,081       1,779,231   373,265 Other income               71,429        71,429        285,716     288,157 Loss on disposal of an     --           --            --        (5,584) equity method investment Income (loss) before income tax provision and equity in earnings of      4,350,553     (5,195,397)   9,574,137   (251,618) equity method investments, net of tax                                                                 Provision for income taxes 4,085,308     333,611       5,130,025   1,322,368 Equity in earnings of equity method investments, 91,183        --          78,362      5,604 net of tax Net income (loss)          356,428       (5,529,008)   4,522,474   (1,568,382)                                                                 Less: Net loss attributable to the        (62,312)      (165,499)     (1,133,792) (284,500) noncontrolling interests Net income (loss) attributable to Bona Film  418,740       (5,363,509)   5,656,266   (1,283,882) Group Limited Net income (loss) attributable to Bona Film                                        Group Limited per ADS Basic                      0.01          (0.09)        0.09        (0.02) Diluted                    0.01          (0.09)        0.09        (0.02)                                                                 Weighted average shares used in calculating net                                          income (loss) per ordinary share Basic                      30,106,487    29,666,695    29,870,809  29,514,979 Diluted                    30,796,988    29,666,695    30,436,728  29,514,979                                                                                                                                  BONA FILM GROUP LIMITED Unaudited Condensed Statement of Consolidated Comprehensive Income (in U.S. dollars)                                                                                          Three-months ended   Twelve-months ended December                             December 31,          31,                            2013      2012        2013           2012 Net income (loss)           356,428   (5,529,008) 4,522,474      (1,568,382) Other comprehensive income,                                    net of tax Foreign currency           1,219,002 842,939     3,057,062      1,030,733 translation adjustments Comprehensive income (loss) 1,575,430 (4,686,069) 7,579,536      (537,649) Less: comprehensive loss attributable to the         (64,059)  (150,142)   (1,124,577)    (282,552) noncontrolling interests Comprehensive income (loss) attributable to Bona Film   1,639,489 (4,535,927) 8,704,113      (255,097) Group Limited                                                                                                                              BONA FILM GROUP LIMITED Unaudited Condensed Consolidated Balance Sheets (in U.S. dollars)                                                                                                                      December 31, December 31,                                                     2013         2012                                                                  Cash and cash equivalents                            32,684,423   23,227,922 Restricted Cash                                      30,727,502   4,815,332 Accounts receivable, net of allowance for doubtful   39,409,151   40,307,672 accounts Prepaid expenses and other current assets            17,325,791   23,329,262 Amount due from related parties                      510,116      343,817 Current deferred tax assets                          973,080      970,683 Inventories                                          312,907      276,436 Total current assets                                 121,942,970  93,271,124                                                                  Distribution rights                                  6,554,057    11,406,692 Production costs                                     142,245,594  90,345,409 Prepaid film costs                                   4,406,013    7,426,915 Property and equipment, net                          63,678,652   60,208,609 Acquired intangible assets, net                      2,451,801    3,189,481 Non-current deferred tax assets                      509,730      311,102 Cost method investments                              1,479,113    1,296,307 Equity method investments                            26,277,613   -- Goodwill                                             50,540,017   49,110,021 Total assets                                         420,085,560  316,565,660                                                                  Accounts payable                                     24,540,234   35,257,660 Accrued expenses and other current liabilities       32,634,753   28,145,099 Amounts due to related parties                       5,885,724    5,746,328 Income tax payable                                   6,460,253    2,420,443 Bank borrowing                                       60,703,791   12,542,161 Other borrowing                                      4,126,402    8,671,050 Current film participation financing liabilities     43,821,650   15,086,892 Total current liabilities                            178,172,807  107,869,633                                                                  Bank borrowing                                       20,000,000   18,025,553 Deferred income                                      1,358,577    813,681 Non-Current film participation financing liabilities 17,675,141   -- Deferred tax liability                               23,626       211,203 Total liabilities                                    217,230,151  126,920,070                                                                  Ordinary shares (par value of US$0.0005 per share, 85,000,000 shares authorized, 31,402,346 and 30,160,235 shares issued and outstanding as of       15,080       14,869 December 31, 2013 and 30,402,346 and 29,737,257 shares issued and outstanding as of December 31, 2012.) Additional paid-in capital                           182,781,563  176,134,737 Statutory reserves                                   3,533,885    2,543,272 Accumulated profit                                   5,216,171    550,518 Accumulated other comprehensive income               9,512,937    6,465,090 Total Bona Film Group Limited's equity               201,059,636  185,708,486                                                                  Noncontrolling interests                             1,795,773    3,937,104 Total equity                                         202,855,409  189,645,590                                                                  Total liabilities and equity                         420,085,560  316,565,660                                                                                                                                    BONA FILM GROUP LIMITED Unaudited Reconciliation of Non-GAAP Measures (in U.S. dollars)                                                                                   Three-months ended December Twelve-months ended December                       31,                         31,                      2013         2012           2013          2012 Net income (loss)     356,428      (5,529,008)    4,522,474     (1,568,382)                                                              Share-based           1,172,324    1,367,266      3,958,407     4,803,163 compensation Net income (loss),    1,528,752    (4,161,742)    8,480,881     3,234,781 Non-GAAP                                                              Interests             (135,694)    188,247        1,100,462     152,896 Taxes                 4,085,308    333,611        5,130,025     1,322,368 Depreciation &        1,482,285    1,212,750      5,723,479     4,370,679 Amortization Adjusted EBITDA,      6,960,651    (2,427,134)    20,434,847    9,080,724 Non-GAAP                                                               CONTACT: In China:          Lingzi Gui          Bona Film Group Limited          Tel: +86-10-5631-0700-398          Email: ir@bonafilm.cn                   In the U.S.:          The Piacente Group, Inc.          Investor Relations          Kathy Price          Tel: (212) 481-2050          Email: bona@tpg-ir.com  Bona Film Group Limited Logo