Tiger Media, Inc. (“Tiger Media”) (NYSE MKT:IDI) (NYSE MKT:IDI.WS), formerly known as SearchMedia Holdings Limited, one of China's leading nationwide multi-platform media companies, today reported unaudited financial results for the nine months ended September 30, 2012.
Financial Highlights for the Nine Months ended September 30, 2012
- Revenue decreased 40% year-on-year from $45.5 million to $27.3 million.
- Operating profit increased from $2.2 million to $7.2 million year-on-year.
- Net profit increased from $1.1 million to $6.0 million year-on-year mainly attributable to one time gain on disposal of subsidiaries and gain from extinguishment of acquisition consideration.
- Acquisition consideration payable reduced from $23.2 million at year end 2011 to $5.7 million at September 30, 2012.
- The Company closed on two private placements pursuant to which the Company sold an aggregate of 7.0 million shares of the Company’s common stock at a price of $1.00 per share.
- The Company’s Convertible Note Holders converted $3.1 million in convertible notes into common shares at a price of $1.00 per share.
- After giving effect to the approximately $2.1 million of proceeds received from the warrant price reduction and exchange completed on December 26, 2012, shareholders’ equity would be $5.6 million and cash would increase to $9.4 million.
Unaudited Financial Results for the Nine Months ended September 30, 2012
Revenue decreased 40% to $27.3 million in the first nine months of 2012 from $45.5 million for the same period last year primarily due to the divestiture of Zhejiang Continental, Shenyang Jingli and Qingdao Kaixiang, the streamlining of Ad-Icon Shanghai’s non-profitable elevator business and the termination of our VIE structure.Gross profit decreased year-on-year from $10.6 million in the same period last year to $3.1 million as a result of a decrease in revenue during the period, divestiture of Shenyang Jingli, Zhejiang Continental, Qingdao Kaixiang, and streamlining of the Ad-Icon Shanghai elevator business while still incurring contracted advertising space lease costs. Gross margin decreased to 11.4% from 23.3% in the same period last year due to higher concession costs, higher network expansion cost, higher percentage of agency business in advertising revenue, and recent subsidiaries separation and elevator business streamlining.
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