Charm Communications Inc. Announces Unaudited Third Quarter 2012
Results
BEIJING, Nov. 19, 2012 /PRNewswire-FirstCall/ -- Charm
Communications Inc. (NASDAQ: CHRM) ("Charm" or the "Company"), a
leading advertising agency in China, today announced its unaudited financial
results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
- Turnover decreased 1.7% year over year to
$216.5 million in the third quarter
of 2012
- Revenues for Charm's advertising agency
business grew 47.3% year over year to $13.6 million in the third quarter of 2012
- Revenues for Charm's media investment management
business declined 42.8% year over year to $34.1 million in the third quarter of 2012
- Revenues declined 30.5% year over year
to $48.8 million in the third quarter
of 2012
- Gross profit declined 36.2% year over year to
$14.4 million in the third quarter of
2012
- Net income declined 99.3% year over year to $0.1 million in the third quarter of 2012
- Non-GAAP net income, which excludes share-based
compensation expenses and amortization of intangible assets,
declined 94.2% year over year to $0.8
million in the third quarter of 2012
"Despite a challenging operating environment, our core
advertising agency business continued to outperform the market,"
said Mr. He Dang, Charm's founder, chairman and chief executive
officer. "In particular, our sports marketing team and digital
business won accounts that improved our extraction rate
substantially. While our principal media business continued to feel
the effects of the prevailing macro and regulatory conditions, we
saw greater contributions from our newly acquired assets. We will
continue to look for opportunities to deliver long-term growth in
our media business, as well as invest heavily in fast-growing areas
like digital marketing, to provide clients with full-service,
integrated advertising solutions."
Mr. Wei Zhou, Charm's chief
financial officer, added, "In terms of gross billings, we remain in
a healthy market position. Our core agency business remains strong,
with substantial growth year to date. At the same time, margins for
our media business continue to improve. Looking forward, we will
stay conservative with respect to our media business in the near
term but will continue to invest in key talent and assets to
capture growth when the macro-economic environment improves."
Third Quarter 2012 Results
Turnover (non-GAAP)
US$ mm
|
3Q12
|
3Q11
|
2Q12
|
Y-o-Y %
|
Q-o-Q%
|
Total turnover
(non-GAAP)
|
$216.5
|
$220.2
|
$195.4
|
-1.7%
|
10.8%
|
Advertising
agency
|
$182.5
|
$160.6
|
$170.9
|
13.6%
|
6.8%
|
Media investment
management
|
$34.1
|
$59.6
|
$24.5
|
-42.8%
|
39.2%
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
The Company uses turnover (non-GAAP), defined as total customer
advertising spending placed through or with Charm, to reflect the
scale of its business.
The 1.7% year-over-year decrease in total turnover was mainly
due to the decrease in the media investment business, which was a
result of the Company dropping several media assets at the
beginning of 2012 to modify its media inventory mix and reduce
risks in the wake of regulatory changes in the satellite market.
The 10.8% quarter-over-quarter increase in turnover was largely
attributed to seasonal factors.
The 13.6% year-over-year increase in the advertising agency
business ("agency business") turnover was mainly due to the
increase in the number of new agency clients and the increase in
advertising spending from existing agency clients. The 6.8%
quarter-over-quarter increase in turnover was mainly attributed to
seasonal factors.
The revenue extraction rate, which is defined as revenue divided
by turnover, was 7.5% for the agency business, compared to 5.8% for
the third quarter of 2011 and 5.7% for the second quarter of 2012.
The increase in the revenue extraction rate was mainly due to
Olympics-related branding placements, which had relatively higher
revenue extraction rates, and partly due to increased advertising
spending on non-CCTV media platforms, the internet and satellite
channels, all of which have exhibited higher extraction rates
relative to CCTV. The Company expects the revenue extraction rate
to increase as the Company expands its full-service offerings
across all media platforms under Charm Advertising and ramps up
digital media offerings under Charm Interactive and Charm
Click.
The 42.8% year-over-year turnover decrease (equivalent to GAAP
revenue) in the media investment management business ("principal
media business"), which operates under the Shangxing Media brand,
was mainly due to the slowdown in the broader economic environment
and the dropping of several media assets at the beginning of 2012
following the aforementioned regulatory changes. The 39.2%
quarter-over-quarter increase in turnover in the principal media
business stemmed mainly from our exclusive agency agreement with
Beijing Television's sports channel, ("BTV-Sports") signed in
June 2012, as well as seasonal
factors.
Revenues
US$ mm
|
3Q12
|
3Q11
|
2Q12
|
Y-o-Y %
|
Q-o-Q%
|
Total
revenues
|
$48.8
|
$70.2
|
$36.0
|
-30.5%
|
35.7%
|
Advertising
agency
|
$13.6
|
$9.3
|
$9.8
|
47.3%
|
39.3%
|
Media investment
management
|
$34.1
|
$59.6
|
$24.5
|
-42.8%
|
39.2%
|
Branding and identity
services
|
$1.1
|
$1.4
|
$1.7
|
-17.9%
|
-34.2%
|
The changes in agency and principal media business revenues are
consistent with the changes in turnover and the revenue extraction
rate. The decrease in branding and identity services was primarily
due to decreased client demand for creative services in the third
quarter of 2012.
Gross Profit
US$ mm
|
3Q12
|
3Q11
|
2Q12
|
Y-o-Y %
|
Q-o-Q%
|
Cost of
revenues
|
$34.5
|
$47.7
|
$24.9
|
-27.7%
|
38.7%
|
Gross profit
|
$14.4
|
$22.5
|
$11.1
|
-36.2%
|
29.2%
|
Gross margin
|
29.4%
|
32.1%
|
30.9%
|
|
|
Charm mainly attributes the year-over-year decrease in cost of
revenues to the dropping of several media assets in order to modify
the Company's media inventory mix following the aforementioned
regulatory changes. The year-over-year decline in gross profit was
due to a lower contribution from the principal media business. The
quarter-over-quarter increase in cost of revenues in the media
investment management business was mainly due to the addition of a
new media asset, BTV-Sports, in June
2012. The slight quarter-over-quarter decrease in gross
profit was mainly due to the ramp-up of new media assets.
Operating Profit
US$ mm
|
3Q12
|
3Q11
|
2Q12
|
Y-o-Y %
|
Q-o-Q%
|
Total operating
expenses
|
$14.8
|
$9.3
|
$10.7
|
59.1%
|
38.0%
|
Selling and
marketing
|
$9.4
|
$6.7
|
$7.9
|
40.6%
|
19.0%
|
General and
administrative
|
$5.4
|
$2.6
|
$2.8
|
106.2%
|
91.0%
|
Operating
profit
|
-$0.2
|
$13.2
|
$0.3
|
-101.5%
|
-172.8%
|
The 40.6% year-over-year increase and 19.0% quarter-over-quarter
increase in selling and marketing expenses were primarily due to
increased headcount, including executive hires Cathy Chen, president of the Company's agency
business, and Leon Liu, general
manager of Charm Interactive for eastern China.
The 106.2% year-over-year increase and 91.0%
quarter-over-quarter increase in general and administrative
expenses were mainly attributed to a bad debt provision of
US$2.8 million in the third quarter
of 2012.
Net Income
US$ mm
|
3Q12
|
3Q11
|
2Q12
|
Y-o-Y %
|
Q-o-Q%
|
Non-GAAP net
income*
|
$0.8
|
$14.2
|
$1.5
|
-94.2%
|
-46.6%
|
Net income
|
$0.1
|
$13.2
|
$0.8
|
-99.3%
|
-89.0%
|
Basic net income per ADS
(US$)
|
-$0.01
|
$0.32
|
$0.01
|
|
|
Fully diluted net income
per ADS (US$)
|
-$0.01
|
$0.31
|
$0.01
|
|
|
*The Company's non-GAAP net income excludes share-based
compensation expenses and amortization of intangible assets.
Each American Depositary Share ("ADS") represents two common
shares. The weighted average number of shares used to compute basic
net income per ADS for the third quarter of 2012 was 38,657,508. As
of September 30, 2012, 38,290,088 ADS
were issued and outstanding.
Cash Flows and Cash Position
Net cash flow from operations for the third quarter 2012 was
negative $4.8 million, mainly due to
cash outflows for the newly acquired BTV-Sports, which was in its
ramp-up stage. As of September 30,
2012, the Company had cash and cash equivalents of
$117.9 million, compared to
$124.3 million at the end of the
second quarter of 2012.
Customers
In the third quarter of 2012, Charm's agency business had 167
advertisers, compared to 165 advertisers in the second quarter of
2012 and 148 advertisers in the third quarter of 2011.
In the third quarter of 2012, Charm's principal media business
had 231 advertisers, compared to 207 advertisers in the second
quarter of 2012 and 303 advertisers in the third quarter of
2011.
Employee Headcount
As of September 30, 2012, the
Company had 842 employees, compared to 809 employees as of
June 30, 2012.
Recent Business Developments
In October 2012, Charm Click was
chosen as Baidu's official SEM agency for its European business for
the period of September 1, 2012
through December 31, 2013. As Baidu's
European SEM agency, Charm Click will promote Baidu's technology
services across 42 countries. Charm Click is one of the first
Baidu-certified four-star and five-star SEM agencies and is a
member of the Baidu Search Marketing Expert Committee.
The Company won the following accounts in the third quarter of
2012:
- Charm Advertising won the CCTV business for COFCO Group,
China's largest food manufacturer
and processor, and the satellite TV business for Mengniu
Dairy.
- Charm Interactive won the digital marketing business for CONBA,
a China-based, OTC pharmaceutical
company.
- Charm Click won the search engine marketing businesses for
Bosideng, Michelin and Guangdong Development Bank.
In November 2012, Charm
Advertising again secured the number one position in terms of
successful bidding volume at the annual CCTV prime-time auction,
which was held on November 18, 2012.
The total value of auctioned and pre-sold advertising resources for
CCTV hit an all time high of RMB 15.88
billion, an increase of 11.39% compared to the previous
year. Charm has held the number one position as top bidder for ten
consecutive years.
Business Outlook
US$ mm
|
4Q12E
|
Total
revenues
|
47.0 to 49.5
|
Non-GAAP net
loss*
|
2.5 to 2.0
|
*The Company's non-GAAP net income (loss) excludes share-based
compensation expenses and amortization of intangible assets.
The Company bases these estimates on a foreign exchange rate of
RMB6.30 to US$1.00. This forecast reflects the Company's
current and preliminary view, which is subject to change.
Non-GAAP Financial Measures:
To supplement the unaudited condensed consolidated financial
information presented in accordance with Accounting Principles
Generally Accepted in the United
States ("GAAP"), the Company also provides the following
non-GAAP financial measures: "turnover," which is defined as total
customer advertising spending placed through or with Charm, and
"non-GAAP net income (loss)," which is defined as GAAP net income
(loss) excluding stock-based compensation expenses and amortization
of intangible assets.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of the Company's current and past
financial performance in ongoing core operations as well as
prospects for the future. These measures should be considered in
addition to results prepared and presented in accordance with GAAP,
but should not be considered a substitute for, or superior to, GAAP
results. Management uses both GAAP and non-GAAP information in
evaluating and operating the Company's business internally and
therefore deems it important to provide all of this information to
investors.
Cautions on Use of Non-GAAP Measures
In addition to Charm's consolidated financial results prepared
under U.S. GAAP, the Company also provides non-GAAP financial
measures, including "turnover" and "non-GAAP net income (loss)."
The Company believes that the non-GAAP financial measures provide
investors with another method for assessing its operating results
in a manner that is focused on the performance of its ongoing
operations.
Management believes investors will benefit from greater
transparency in referring to these non-GAAP financial measures when
assessing the Company's operating results, as well as when
forecasting and analyzing future periods. However, management
recognizes that:
- these non-GAAP financial measures are limited in their
usefulness and should be considered only as a supplement to the
Company's GAAP financial measures;
- these non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, the Company's GAAP
financial measures;
- these non-GAAP financial measures should not be considered to
be superior to the Company's GAAP financial measures; and
- these non-GAAP financial measures were not prepared in
accordance with GAAP and investors should not assume that the
non-GAAP financial measures presented in this earnings release were
prepared under a comprehensive set of rules or principles.
Further, these non-GAAP financial measures may be unique to the
Company, as they may be different from non-GAAP financial measures
used by other companies. As such, this presentation of non-GAAP
financial measures may not enhance the comparability of the
Company's results to the results of other companies. Readers are
cautioned not to view non-GAAP results on a stand-alone basis or as
a substitute for results under GAAP, or as being comparable to
results reported or forecasted by other companies.
A reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure or measures appears at
the end of this press release.
Conference Call
Charm's management team will hold an earnings conference call at
8 a.m. U.S. Eastern Time
(9 p.m. Beijing/Hong Kong Time) on Tuesday, November 20, 2012.
Dial-in details for the conference call are as follows:
U.S.:
|
+1-718-354-1231
|
International:
|
+65-6723-9381
|
United
Kingdom:
|
+44-20-3059-8139
|
Hong Kong:
|
+852-2475-0994
|
Passcode:
|
69059198
|
A replay of the call will be available from 11 a.m. November 20,
2012 until November 27, 2012
U.S. Eastern Time. Dial-in details for the replay are as
follows:
International:
|
+61-2-8199-0299
|
Passcode:
|
69059198
|
Additionally, an archived webcast of
this call will be available on the Investor Relations section of
the Charm web site at http://ir.charmgroup.cn.
About Charm
Charm Communications Inc. (NASDAQ: CHRM) is a leading
advertising agency group in China
that offers integrated advertising services with particular focus
on television and the internet. Charm's integrated advertising
services include full media planning and buying, as well as
creative and branding services. Charm has built a full service
digital advertising platform, which offers digital campaign
capabilities across all key digital media, including search
engines, display portals, online video sites and social networking
services. Charm also secures advertising inventory and other
advertising rights, such as sponsorships and branded content, from
premium media networks and resells to clients as part of its
integrated media offerings. Charm's clients include China's top domestic brands, as well as some
major international brands, across a wide range of industries.
Since 2003 Charm has been the top agency every year for
China's leading television
network, China Central Television (CCTV). For more information,
please go to http://ir.charmgroup.cn.
Safe Harbor Statement
This press release contains "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 Charm's filings with
the U.S. Securities and Exchange Commission, including its
registration statement on Form F-1. 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.
For investor and media inquiries, please contact:
In China:
Ms. Jenny Wang
IR Department
Charm Communications Inc.
Phone: +86-10-8556-2527
Email: ir@charmgroup.cn
In the U.S.:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Phone: +1-646-460-9989
Email: chrm@ogilvy.com
Charm Communications
Inc.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(Amounts in thousands of
U.S. dollars)
|
|
|
30-Sep-12
|
30-Jun-12
|
31-Dec-11
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
117,901
|
124,322
|
139,406
|
|
Notes
receivable
|
13,084
|
9,592
|
28,880
|
|
Prepaid
expenses
|
68,002
|
77,868
|
106,393
|
|
Deposits
|
24,085
|
25,426
|
25,730
|
|
Accounts
receivable
|
115,314
|
94,078
|
103,920
|
|
Amount due from related
parties
|
3,000
|
955
|
3,494
|
|
Deferred tax
assets
|
125
|
124
|
125
|
|
Other current
assets
|
4,838
|
4,870
|
2,139
|
Total current
assets
|
346,349
|
337,235
|
410,087
|
|
|
|
|
|
|
Fixed assets,
net
|
7,100
|
6,870
|
4,344
|
|
Intangible assets,
net
|
2,616
|
2,847
|
3,397
|
|
Investments under equity
method
|
1,491
|
1,238
|
1,445
|
|
Goodwill
|
4,341
|
4,294
|
4,335
|
|
Other non-current
assets
|
1,721
|
1,415
|
1,009
|
|
|
|
|
|
Total non-current
assets
|
17,269
|
16,664
|
14,530
|
|
|
|
|
|
TOTAL ASSETS
|
363,618
|
353,899
|
424,617
|
|
|
|
|
|
LIABILITIES, REDEEMABLE
NONCONTROLLING INTEREST AND EQUITY
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable (of
which 648 , 6,208 and 687, as of September 30, 2012, June 30, 2012
and December 31,2011 of the consolidated VIE without recourse to
the Company, respectively)
|
46,061
|
44,165
|
63,141
|
|
Amounts due to related
parties (of which 310, 307 and nil as of September 30, 2012, June
30, 2012 and December 31,2011 of the consolidated VIE without
recourse to the Company, respectively)
|
14,356
|
7,099
|
4,460
|
|
Advances from customers
(of which 1,666, 1,631 and 12,028 as of September 30, 2012, June
30, 2012 and December 31,2011 of the consolidated VIE without
recourse to the Company, respectively)
|
53,833
|
51,914
|
85,720
|
|
Accrued expenses and
other current liabilities (of which 3,473, 3,589 and 4,411 as of
September 30, 2012, June 30, 2012 and December 31,2011 of the
consolidated VIE without recourse to the Company,
respectively)
|
14,548
|
16,679
|
22,876
|
|
Consideration payable
(of which nil as of September 30, 2012, June 30, 2012 and December
31,2011 of the consolidated VIE without recourse to the
Company, respectively)
|
2,817
|
2,787
|
2,813
|
Total current
liabilities
|
131,615
|
122,644
|
179,010
|
|
|
|
|
|
|
Consideration payable
(of which nil as of September 30, 2012, June 30, 2012 and
December 31, 2011 of the consolidated VIE without recourse to the
Company, respectively)
|
2,479
|
2,453
|
2,476
|
Total non-current
liabilities
|
2,479
|
2,453
|
2,476
|
|
|
|
|
|
Total
liabilities
|
134,094
|
125,097
|
181,486
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
5,137
|
4,991
|
4,723
|
|
|
|
|
|
Equity:
|
|
|
|
Charm Communications
Inc.'s equity
|
|
|
|
|
Ordinary
shares
|
8
|
8
|
8
|
|
Additional paid-in
capital
|
100,782
|
102,788
|
116,637
|
|
Retained
earnings
|
106,285
|
106,795
|
105,930
|
|
Accumulated other
comprehensive income
|
13,695
|
11,291
|
13,384
|
Total Charm
Communications Inc. shareholders' equity
|
220,770
|
220,882
|
235,959
|
Noncontrolling
interest
|
3,617
|
2,929
|
2,449
|
Total equity
|
224,387
|
223,811
|
238,408
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE NONCONTROLLING
|
|
|
|
INTEREST AND
EQUITY
|
363,618
|
353,899
|
424,617
|
Charm Communications
Inc.
|
Condensed
Consolidated Statements of Operations
|
(Amounts in thousands of
U.S. dollars, except for number of shares and per share
data)
|
|
|
|
For the three months
ended,
|
|
|
|
Sep. 30,
2012
|
Sep. 30,
2011
|
June 30,
2012
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Media investment
management
|
|
34,073
|
59,605
|
24,477
|
|
Advertising
agency
|
|
13,646
|
9,262
|
9,793
|
|
Branding and identity
services
|
|
1,125
|
1,370
|
1,711
|
Total
revenues
|
|
48,844
|
70,237
|
35,981
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Media investment
management
|
|
32,301
|
45,998
|
22,435
|
|
Advertising
agency
|
|
1,371
|
998
|
1,174
|
|
Branding and identity
services
|
|
796
|
693
|
1,245
|
Total cost of
revenues:
|
|
34,468
|
47,689
|
24,854
|
Gross profit
|
|
14,376
|
22,548
|
11,127
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and marketing
expenses
|
|
9,413
|
6,693
|
7,907
|
|
General and
administrative expenses
|
|
5,393
|
2,615
|
2,823
|
Total operating
expenses
|
|
14,806
|
9,308
|
10,730
|
|
Gain(Loss) from equity
method investees
|
|
237
|
(37)
|
(132)
|
Operating
profit
|
|
(193)
|
13,203
|
265
|
|
|
|
|
|
|
|
Interest
income
|
|
472
|
637
|
570
|
|
|
|
|
|
|
Income before income tax
expense
|
|
279
|
13,840
|
835
|
|
Income tax
expense
|
|
192
|
685
|
42
|
Net income
|
|
87
|
13,155
|
793
|
Net income attributable
to noncontrolling interest
|
|
597
|
472
|
480
|
Net income attributable
to Charm Communications Inc.
|
|
(510)
|
12,683
|
313
|
|
|
|
|
|
Net income(loss)
attributable to Charm Communications Inc. shareholders per
ADS:
|
|
|
|
|
Basic
|
|
(0.01)
|
0.32
|
0.01
|
Diluted
|
|
(0.01)
|
0.31
|
0.01
|
Shares used in
computation of net income(loss) per ADS:
|
|
|
|
|
Basic
|
|
38,765,702
|
39,162,169
|
39,066,416
|
Diluted
|
|
38,765,702
|
41,165,262
|
40,952,959
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
Share-based compensation
expenses during the period included in:
|
|
|
|
|
Cost of
revenues
|
|
-
|
1
|
-
|
Selling and marketing
expenses
|
|
323
|
536
|
330
|
General and
administrative expenses
|
|
156
|
256
|
163
|
Total
|
|
479
|
793
|
493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended,
|
|
|
|
Sep. 30,
2012
|
Sep. 30,
2011
|
June 30,
2012
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
Net income
|
|
87
|
13,155
|
793
|
Other comprehensive
income:
|
|
|
|
|
Change in cumulative
foreign exchange translation adjustment
|
|
2,404
|
2,579
|
(1,967)
|
Comprehensive
income
|
|
2,491
|
15,734
|
(1,174)
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to non-controlling interest
|
|
(688)
|
(355)
|
(233)
|
Less: Comprehensive
income attributable to redeemable non-controlling
interest
|
(146)
|
(4,533)
|
(247)
|
|
|
|
|
|
|
Comprehensive income
attributable to Charm Communications Inc.
|
|
1,657
|
10,846
|
(1,654)
|
Reconciliation from
Net income to Non-GAAP net income:
|
(Amounts in thousands of
U.S. dollars)
|
|
|
For the three months
ended,
|
|
|
Sep. 30, 2012
|
Sep. 30, 2011
|
June 30, 2012
|
|
|
|
|
|
|
Net income
|
87
|
13,155
|
793
|
|
|
|
|
|
|
Add back share-based
compensation expenses
|
|
|
|
during the related
periods
|
479
|
793
|
493
|
|
|
|
|
|
|
Add back amortization on
intangible assets
|
259
|
207
|
260
|
|
|
|
|
|
|
Non-GAAP net
income
|
825
|
14,155
|
1,546
|
Reconciliation from
Turnover (non-GAAP) to USGAAP Revenues:
|
(Amounts in thousands of
U.S. dollars)
|
|
|
For the three months
ended,
|
|
|
Sep. 30, 2012
|
Sep. 30, 2011
|
June 30, 2012
|
|
Turnover
(non-GAAP):
|
|
|
|
|
Media investment management
|
34,073
|
59,605
|
24,477
|
|
Advertising
agency
|
182,457
|
160,627
|
170,904
|
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
|
Total
turnover
|
216,530
|
220,232
|
195,381
|
|
|
|
|
|
|
Extracted
rate:
|
|
|
|
|
Media investment
management
|
100.0%
|
100.0%
|
100.0%
|
|
Advertising
agency
|
7.5%
|
5.8%
|
5.7%
|
|
Branding and identity
services
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
USGAAP
Revenue:
|
|
|
|
|
Media investment
management
|
34,073
|
59,605
|
24,477
|
|
Advertising
agency
|
13,646
|
9,262
|
9,793
|
|
Branding and identity
services
|
1,125
|
1,370
|
1,711
|
|
Total revenue
|
48,844
|
70,237
|
35,981
|
SOURCE Charm Communications Inc.