Welcome!

News Feed Item

YOU On Demand Reports 2013 Results; Provides Update On Ongoing Operational Progress

- Management to Host Call at 4:30 p.m. ET -

NEW YORK, March 31, 2014 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or "YOD"), a leading multi-platform entertainment and Video On Demand ("VOD") company in China, announced today its year-end operating results for the period ended December 31, 2013 (a full copy of the Company's annual report on Form 10-K is also being posted at www.sec.gov).   

Conference Call: Chairman Shane McMahon and Chief Financial Officer & President Marc Urbach will host a conference call at 4:30 p.m. ET (1:30 p.m. PT) today. The dial-in numbers are 800.734.4208 or (+1) 212.231.2900 (international callers).

Recent Highlights

  • In early February 2014, C Media Limited, a leading China-based mobile video service provider, led an investment into YOU On Demand of $19 million USD cash, raising the total C Media-led investment stake to $25.0 million USD.
    • In conjunction with C Media's recent investment, three new directors (Mr. Jin Shi, Mr. Clifford Higgerson and Mr. Arthur Wong) were appointed to YOD's board of directors, replacing two departing directors.
  • The Company forged arrangements with leading movie studios to include feature films – new releases and library titles – via YOU On Demand's newly launched mobile application (App), YOU Cinema. The App will offer both Transactional (TVOD) and Subscription-based (SVOD) options as YOD does on other platforms.
  • Kevin Lin was appointed Chief Technology Officer, bringing more than two decades of relevant industry experience and will be responsible for all facets of technology development, including product management and marketing, content production and operations.  Prior to joining YOU On Demand, Kevin served as a principal architect at Huawei's Silicon Valley Research Labs, advising internally on key technology disruptions and major shifts.
  • YOD announced partnerships with Sesame Workshop, HiT Enterprises and Nelvana, three of the world's leading producers of family-friendly entertainment, to offer Chinese consumers subscription-based content on its YOU Kids On Demand service ("YOU Kids"), slated to launch later this year.

Weicheng Liu, CEO, commented, "Backed by C Media's support, we continue to make progress on a number of fronts, including our successful recent expansion onto the mobile entertainment distribution platform.  Our YOU Cinema App is now being prominently displayed on Huawei's Mate Smartphones, generating increasing levels of consumer interest for new and library movie titles from two of our leading Hollywood studio partners, Paramount and Disney.

"We are also delighted that three new partners are providing us with some of the most popular and compelling children's television programming. We are presently working out the logistics of this subscription-based offering with Sesame Workshop, HiT Enterprises and Nelvana and will have further details when YOU Kids is ready for its official debut. With a growing array of available premium programming, YOD is building incremental brand awareness and is fast becoming synonymous with high quality entertainment offerings throughout China on an increasing number of digital platforms."

YOD 2013 Operating Results

Marc Urbach, YOU On Demand's President & CFO, commented, "Our 2013 results demonstrate YOD's ability to grow our VOD revenue as well as our ability to expand our business across new sources of revenue, including mobile. We are pleased to see our digital cable, OTT and IPTV VOD platforms continue to grow in popularity among consumers and excited about the promising start of YOU On Demand's mobile launch with our prominent Chinese partners. C Media's increased capital investment affords us a much stronger balance sheet and overall improved financial health that we believe will serve us well as we target achieving cash flow positive status in the near future given our comparatively lean and efficient operations."

It is important to note that YOU On Demand's financial results for the 2012 full-year period mainly reflect the operations of its now legacy business, Shandong Media.  Those results were deconsolidated as of July 1, 2012 and are being accounted for under the equity method.  In order to provide a more meaningful comparison of our financial results, our discussion of the Company's Consolidated Results of Operations in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the 10-K, utilizes Pro Forma 2012 financial information that excludes the impact of Shandong Media.  Excluding the contribution from Shandong Media, revenues for the period ending December 31, 2012 totaled $5,000.  That compares to revenues for the period ending December 31, 2013 of $0.3 million.

Total operating expenses declined 22% on a Pro Forma basis and the Company's reduced cost base along with a one-time net gain from discontinued operations, helped lead to an approximate 49% reduction in the annual net loss.

YOD's cash and cash equivalents balance at December 31, 2013 rose to $3.8 million, up from $3.3 million a year earlier, and this figure does not yet reflect the additional gross $19.0 million infusion from C Media and other investors, which was received during Q1 2014.

About YOU On Demand Holdings, Inc. (http://corporate.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 of Hollywood'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

212-206-1216                                       

212-835-8500

[email protected]                     

[email protected]

@youondemand


 

 

The following table sets forth key components of our results of operations.

Year Ended


December 31,


December 31,


2013


2012




(Pro Forma)





Revenue

$309,000


$5,000

Cost of revenue

3,126,000


2,232,000

Gross loss

(2,817,000)


(2,227,000)





Operating expense:




Selling, general and administrative expenses

7,609,000


8,973,000

Professional fees

706,000


1,046,000

Depreciation and amortization

774,000


2,101,000

Impairments of long-lived assets

311,000


-

   Total operating expense

9,400,000


12,120,000





Loss from operations

(12,217,000)


(14,347,000)





Interest & other income / (expense)




   Interest income

3,000


3,000

   Interest expense

(374,000)


(78,000)

   Stock purchase right

-


(44,000)

   Cost of reset provision

-


(659,000)

   Change in fair value of warrant liabilities

(466,000)


647,000

   Change in fair value of contingent consideration

(252,000)


1,313,000

   Loss (gain) on investment in unconsolidated entities

(3,000)


68,000

   Loss on investment write-off

-


(95,000)

   Loss on write-off of uncollectible loans

-


(40,000)

   Gain on deconsolidation of Shandong Media

-


142,000

   Other

56,000


(139,000)





Loss from continuing operations




   before income taxes and noncontrolling interests

(13,253,000)


(13,229,000)





Income tax benefit

111,000


344,000





Net loss from continuing operations

(13,142,000)


(12,885,000)





Net gain (loss) from discontinued operations




   (including gain on disposal of $5,616,269)

5,255,000


(2,631,000)





Net loss

(7,887,000)


(15,516,000)





Net loss attributable to noncontrolling interests

1,055,000


1,688,000





Net loss attributable to YOU On Demand shareholders

(6,832,000)


(13,828,000)





Dividends on preferred stock

(1,358,000)


(924,000)





Net loss attributable to YOU on Demand common shareholders

$(8,190,000)


$(14,752,000)





 

 






Pro Forma Comparisons


Twelve Months Ended


December 31,


Shandong Media


Pro Forma


2012


6 months


December 31.






2012






(excluding
Shandong
Media)







Revenue

$1,701,000


$1,696,000


$5,000

Cost of revenue

3,461,000


1,229,000


2,232,000

Gross (loss) profit

(1,760,000)


467,000


(2,227,000)







Operating expense:






Selling, general and administrative expenses

9,690,000


717,000


8,973,000

Professional fees

1,046,000


-


1,046,000

Depreciation and amortization

2,159,000


58,000


2,101,000

   Total operating expense

12,895,000


775,000


12,120,000







Loss from operations

(14,655,000)


(308,000)


(14,347,000)







Interest & other income / (expense)






   Interest income

3,000


-


3,000

   Interest expense

(78,000)


-


(78,000)

   Stock purchase right

(44,000)


-


(44,000)

   Cost of reset provision

(659,000)


-


(659,000)

   Change in fair value of warrant liabilities

647,000


-


647,000

   Change in fair value of contingent consideration

1,313,000


-


1,313,000

   Loss on investment in unconsolidated entities

68,000


-


68,000

   Loss on investment write-off

(95,000)


-


(95,000)

   Loss on write-off of uncollectible loans

(513,000)


(473,000)


(40,000)

   Gain on deconsolidation of Shandong Media

142,000


-


142,000

   Other

(139,000)


-


(139,000)







Loss before income taxes and noncontrolling interests

(14,010,000)


(781,000)


(13,229,000)







Income tax benefit

353,000


9,000


344,000







Net loss from continuing operations

(13,657,000)


(772,000)


(12,885,000)







Net loss from discontinued operations

(2,631,000)


-


(2,631,000)







Net loss

(16,288,000)


(772,000)


(15,516,000)







Net loss attributable to noncontrolling interests

2,074,000


386,000


1,688,000







Net loss attributable to YOU On Demand shareholders

(14,214,000)


(386,000)


(13,828,000)







Deemed dividends on preferred stock

(924,000)


-


(924,000)







Net loss attributable to YOU On Demand common shareholders

$(15,138,000)


$(386,000)


$(14,752,000)







 

 


- Financial Tables Follow -


YOU On Demand Holdings, Inc. and Its Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS








2013


2012(1)






Revenue

$ 308,695


$ 1,700,799

Cost of revenue

3,126,089


3,460,772

Gross loss

(2,817,394)


(1,759,973)






Operating expense:





Selling, general and administrative expenses

7,608,742


9,689,763


Professional fees

705,692


1,046,095


Depreciation and amortization

774,480


2,159,149


Impairments of long-lived assets

311,249


-

Total operating expense

9,400,163


12,895,007






Loss from operations

(12,217,557)


(14,654,980)






Interest & other income / (expense)





Interest income

3,426


2,974


Interest expense

(374,178)


(77,965)


Stock purchase right

-


(43,748)


Cost of reset provision

-


(658,719)


Change in fair value of warrant liabilities

(466,060)


647,302


Change in fair value of contingent consideration

(251,963)


1,313,443


Loss (gain) on investment in unconsolidated entities

(2,741)


67,675


Loss on investment write-off

-


(95,350)


Loss on write-off of uncollectible loans

-


(513,427)


Gain on deconsolidation of Shandong Media

-


141,814


Other

55,831


(139,739)






Net loss from continuing operations





before income taxes and noncontrolling interest

(13,253,242)


(14,010,720)






Income tax benefit

111,266


354,294






Net loss from continuing operations

(13,141,976)


(13,656,426)






Net gain (loss) from discontinued operations





(including gain on disposal of $5,616,269 in 2013)

5,255,474


(2,630,979)






Net loss

(7,886,502)


(16,287,405)






Plus: Net loss attributable to noncontrolling interests

1,054,970


2,074,098






Net loss attributable to YOU On Demand shareholders

(6,831,532)


(14,213,307)

Dividends on preferred stock

(1,358,364)


(924,132)






Net loss attributable to YOU on Demand common shareholders

$ (8,189,896)


$ (15,137,439)






Basic earnings (loss) per share





Loss from continuing operations

$ (0.89)


$ (1.12)


Gain (loss) from discontinued operations

0.35


(0.24)


   Basic loss per shares

$ (0.54)


$ (1.36)






Diluted earnings (loss) per share





Loss from continuing operations

$ (0.89)


$ (1.12)


Gain (loss) from discontinued operations

0.35


(0.24)


   Diluted loss per shares

$ (0.54)


$ (1.36)






Weighted average shares outstanding





Basic

15,226,216


11,099,746


Diluted

15,226,216


11,099,746






1)

Financial results for the 2012 full-year period mainly reflect the operations of its legacy business, Shandong Media. Those results were deconsolidated as of July 1, 2012 and are being accounted for under the equity method. Excluding the contribution from Shandong Media, revenues for the period ending December 31, 2012 totaled $5,000. That compares to revenues for the period ending December 31, 2013 of $308,695.

 

 

YOU On Demand Holdings, Inc. and Its

Subsidiaries

CONSOLIDATED BALANCE SHEETS




2013


2012

ASSETS




Current assets:





Cash and cash equivalents

$3,822,889


$3,277,891


Marketable equity securities, available for sale

1,371


2,229


Accounts receivable, net

175,211


-


Licensed content, current

428,322


681,457


Prepaid expenses

330,013


412,669


Debt issuance costs, net

128,879


-


Other current assets

47,557


135,486


Current assets of discontinued operations

-


1,498,852

Total current assets

4,934,242


6,008,584






Property and equipment, net

499,858


729,763

Licensed content, noncurrent

162,646


530,367

Intangible assets, net

2,621,527


3,416,858

Goodwill

6,105,478


6,105,478

Investment in unconsolidated entities

673,567


655,834

Non-current assets of discontinued operations

-


5,011,161

Total assets

$14,997,318


$22,458,045






LIABILITIES AND EQUITY




Current liabilities:





Accounts payable

$656,545


$885,366


Accrued expenses and liabilities

1,046,920


953,134


Deferred revenue

68,969


-


Deferred license fees, current

1,200,764


-


Other current liabilities

29,024


708,367


Contingent purchase price consideration liability, current

578,744


368,628


Convertible promissory note

3,000,000


3,000,000


Warrant liabilities

1,344,440


878,380


Current liabilities of discontinued operations

-


5,197,450

Total current liabilities

7,925,406


11,991,325






Deferred license fees, noncurrent

-


460,547

Contingent purchase price consideration liability

-


368,628

Deferred tax liability

125,809


237,075

Convertible promissory note

2,000,000


-

Non-current liabilities of discontinued operations

-


68,774

Total liabilities

10,051,215


13,126,349






Commitments and Contingencies









Convertible redeemable preferred stock, $.001 par value; 50,000,000





shares authorized





Series A - 7,000,000 shares issued and outstanding, liquidation preference





  of $3,500,000 at December 31, 2013 and 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 December 31, 2013 and 2012, respectively

-


3,223,575


Series C - 87,500 and 250,000 shares issued and outstanding, liquidation preference





  of $350,000 and $1,000,000 at December 31, 2013 and 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 December 31, 2013 and 2012, respectively

4,000,000


-






Equity:





Common stock, $.001 par value; 1,500,000,000 shares authorized, 15,794,762 and
  13,742,394 shares issued at December 31, 2013 and 2012, respectively

15,794


13,742


Additional paid-in capital

67,417,025


62,388,502


Accumulated deficit

(65,856,053)


(58,841,664)


Accumulated other comprehensive (loss) income

(715,090)


604,632

Total YOU On Demand equity

861,676


4,165,212

Noncontrolling interests

(1,397,322)


53,046






Total equity

(535,646)


4,218,258






Total liabilities and equity

$14,997,318


$22,458,045










 

 

SOURCE YOU On Demand Holdings, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...