SHANGHAI, March 17, 2015 /PRNewswire/ -- Taomee Holdings
Limited (NYSE: TAOM) ("Taomee" or the "Company"), a leading
children's entertainment and media company in China, today reported its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2014.
Highlights of the Fourth Quarter of
2014
- Total net revenues were US$7.6
million in the fourth quarter of 2014, a decrease of 38.4%
from US$12.3 million in the third
quarter of 2014 and a decrease of 30.5% from US$10.9 million in the fourth quarter of 2013.
This result was above the high end of management's previous outlook
from US$6.3 million to US$6.8
million.
- Net revenues from online businesses were US$6.7 million in the fourth quarter of 2014, a
decrease of 24.6% from US$8.8 million
in the third quarter of 2014 and a decrease of 19.1% from
US$8.2 million in the fourth quarter
of 2013.
- Net revenues from offline businesses were US$0.9 million in the fourth quarter of 2014, a
decrease of 73.5% from US$3.5 million
in the third quarter of 2014 and a decrease of 65.6% from
US$2.7 million in the fourth quarter
of 2013.
- Gross profit was US$5.6 million
in the fourth quarter of 2014, a decrease of 36.2% from
US$8.8 million in the third quarter
of 2014 and a decrease of 29.9% from US$8.0
million in the fourth quarter of 2013.
- Loss from operations was US$0.7
million in the fourth quarter of 2014, compared with a
profit of US$0.1 million in the third
quarter of 2014 and a profit of US$2.1
million in the fourth quarter of 2013.
- Non-GAAP net income attributable to holders of ordinary shares
was US$0.6 million in the fourth
quarter of 2014, as compared with US$3.2
million in the third quarter of 2014 and US$2.9 million in the fourth quarter of
2013.
- Non-GAAP basic and diluted earnings per ADS[1] were
US$0.020 and US$0.018, respectively, in the fourth quarter of
2014, as compared with US$0.089 and
US$0.088, respectively, in the third
quarter of 2014 and US$0.080 and
US$0.079, respectively, in the fourth
quarter of 2013.
- Key Operating Metrics
- The number of active accounts ("ACA") for the Company's virtual
worlds under operation in mainland China was approximately 36.8 million in the
fourth quarter of 2014, a decrease of 38.0% from 59.4 million in
the third quarter of 2014 and a decrease of 4.7% from 38.6 million
in the fourth quarter of 2013.
- Active paying accounts ("APA") for the Company's virtual worlds
under operation in mainland China
were 0.8 million in the fourth quarter of 2014, a decrease of 33.3%
from 1.2 million in the third quarter of 2014, and a decrease of
38.5% from 1.3 million in the fourth quarter of 2013.
- Average revenue per user ("ARPU") for the Company's virtual
worlds under operation in mainland China was approximately RMB43 in the fourth quarter of 2014, flat
comparing with RMB43 in the third
quarter of 2014 and an increase of 16.2% from RMB37 in the fourth quarter of 2013.
- The number of downloads of the mobile applications operated by
the Company was approximately 2.7 million in the fourth quarter of
2014, a decrease of 34.1% from 4.1 million in the third quarter of
2014 and an increase of 50.0% from 1.8 million in the fourth
quarter of 2013.
|
[1] Each American
depositary share ("ADS") represents 20 ordinary shares.
|
Highlights of Fiscal Year 2014
- Total net revenues were US$42.2
million in 2014, a decrease of 12.7% as compared with
US$48.4 million in 2013.
- Net revenues from online business were US$33.3 million in 2014, a decrease of 5.8% as
compared with US$35.3 million in
2013.
- Net revenues from offline businesses were US$8.9 million in 2014, a decrease of 31.7% as
compared with US$13.1 million in
2013.
- Gross profit was US$30.5 million
in 2014, a decrease of 13.2% as compared with US$35.1 million in 2013.
- Loss from operations was US$1.9
million in 2014, as compared with a profit of US$3.3 million in 2013.
- Income tax benefit was US$2.2
million in 2014, as compared with an expense of US$1.4 million in 2013.
- Non-GAAP net income attributable to holders of ordinary shares
was US$4.8 million in 2014, as
compared with US$9.0 million in
2013.
- Non-GAAP basic and diluted earnings per ADS were US$0.133 and US$0.132 respectively, in 2014, as compared with
US$0.245 and US$0.241, respectively, in 2013.
"We surpassed the high-end of our guidance for the fourth
quarter. Although we experienced some softness in our offline
business as anticipated, our online business came in ahead of
expectations. During the quarter, we forged ahead in our
re-organization of key business divisions, aligning each group with
division-specific incentives. In addition, we continued to
beta test new mobile games, while boosting the pipeline for future
intellectual properties and new content creation," commented Mr.
Benson Wang, co-founder and chief
executive officer of Taomee.
"In February 2015, we also issued
a special dividend to our shareholders, demonstrating confidence in
our capability to fund future projects and strategies. As we begin
2015, we continue to dedicate ourselves to our combined online plus
offline business model, as we believe this will ultimately
differentiate us from the competition."
Unaudited Financial Results for Fourth Quarter of
2014
Net Revenues
Total net revenues were US$7.6
million in the fourth quarter of 2014, a decrease of 38.4%
from US$12.3 million in the third
quarter of 2014 and a decrease of 30.5% from US$10.9 million in the fourth quarter of
2013.
Net revenues from online business were US$6.7 million in the fourth quarter of 2014, a
decrease of 24.6% from US$8.8 million
in the third quarter of 2014 and a decrease of 19.1% from
US$8.2 million in the fourth quarter
of 2013. The quarter-over-quarter (QoQ) decrease was primarily due
to the seasonality of fewer non-school days in the fourth quarter.
The year-over-year (YoY) decrease was mainly due to the decrease of
active paying users.
Net revenues from offline business were US$0.9 million in the fourth quarter of 2014, a
decrease of 73.5% from US$3.5 million
in the third quarter of 2014 and a decrease of 65.6% from
US$2.7 million in the fourth quarter
of 2013. The QoQ decrease was primarily due to absence of new film
release in the fourth quarter and a decrease in merchandise
licensing business. The YoY decrease was primarily due to the
decrease in the Company's merchandise licensing and toys
businesses.
Cost of Services
Total cost of services was US$2.0
million in the fourth quarter of 2014, a decrease of 44.0%
from US$3.5 million in the third
quarter of 2014 and a decrease of 32.2% from US$2.9 million in the fourth quarter of 2013.
Online business related costs were US$1.2
million in the fourth quarter of 2014, a decrease of 34.9%
from US$1.7 million in the third
quarter of 2014 and a decrease of 43.7% from US$2.0 million in the fourth quarter of
2013. The QoQ and YoY decreases were primarily due to the
decrease in payroll expenses, royalties related to our operation of
certain third-party developed virtual worlds and outsourcing
expenses.
Offline business related costs were US$0.8 million in the fourth quarter of 2014, a
decrease of 52.9% from US$1.8 million
in the third quarter of 2014 and a decrease of 5.9% from
US$0.9 million in the fourth quarter
of 2013. The QoQ decrease was primarily due to the absence of new
film release in the fourth quarter. The YoY decrease was mainly due
to a decrease in outsourcing expenses.
Gross Profit and Gross Margin
Gross profit was US$5.6 million in
the fourth quarter of 2014, a decrease of 36.2% from US$8.8 million in the third quarter of 2014 and a
decrease of 29.9% from US$8.0 million
in the fourth quarter of 2013.
Gross margin was 73.9% in the fourth quarter of 2014, as
compared with 71.3% in the third quarter of 2014 and 73.2% in the
fourth quarter of 2013.
Gross margin for the online business was 82.8% in the fourth
quarter of 2014, as compared with 80.1% in the third quarter of
2014 and 75.3% in the fourth quarter of 2013.
Gross margin for the offline business was 9.1% in the fourth
quarter of 2014, as compared with 48.8% in the third quarter of
2014 and 66.8% in the fourth quarter of 2013.
Total Operating Expenses
Total operating expenses were US$6.3
million in the fourth quarter of 2014, a decrease of 27.0%
from US$8.7 million in the third
quarter of 2014 and an increase of 6.7% from US$5.9 million in the fourth quarter of
2013.
- Product development expenses were US$3.9
million in the fourth quarter of 2014, flat as compared with
US$3.9 million in the third quarter
of 2014 and a slight increase of 3.7% from US$3.7 million in the fourth quarter of 2013.
The YoY increase was primarily due to an increase in payroll
expenses, while partially offset by a decrease in share-based
compensation.
- Sales and marketing expenses were US$2.1
million in the fourth quarter of 2014, a decrease of 9.5%
from US$2.3 million in the third
quarter of 2014 and a decrease of 14.4% from US$2.4 million in the fourth quarter of 2013. The
QoQ decrease was primarily due to a decrease in payroll expenses
and the absence of Seer IV film promotion costs, which occurred in
the third quarter of 2014. The YoY decrease was primarily due to a
decrease in payroll expenses and advertising expenses.
- General and administrative expenses were US$2.7 million in the fourth quarter of 2014, a
decrease of 32.7% from US$4.1 million
in the third quarter of 2014 and a decrease of 18.3% from
US$3.3 million in the fourth quarter
of 2013. The QoQ and YoY decreases were primarily due to the
decrease in provision for bad debt and unrecoverable prepayments
plus indirect tax costs related to intercompany service charges
offset by the increase in payroll expenses. In the third quarter of
2014, there was a significant bad debt provision, while in the
fourth quarter of 2013, there was an extraordinary indirect tax
costs related to intercompany service charges.
Profit/(Loss) from Operations
Loss from operations was US$0.7
million in the fourth quarter of 2014, compared with a
profit of US$0.1 million in the third
quarter of 2014 and a profit of US$2.1
million in the fourth quarter of 2013.
Share of Profit/(Loss) from Equity Method
Investment
Share of profit/loss from equity method investment was a loss of
US$0.2 million in the fourth quarter
of 2014, as compared with a loss of US$0.1
million in the third quarter of 2014 and a profit of
US$0.1 million in the fourth quarter
of 2013.
Income Tax Benefit/(Expense)
Income tax benefit was US$0.2
million in the fourth quarter of 2014, as compared with a
benefit of US$1.7 million in the
third quarter of 2014 and an expense of US$1.0 million in the fourth quarter of 2013.
Net Income
Net income attributable to holders of ordinary shares was
US$0.2 million in the fourth quarter
of 2014, as compared with US$1.2
million in the third quarter of 2014 and US$1.7 million in the fourth quarter of 2013.
Basic and diluted earnings per ADS were US$0.005 and US$0.005, respectively, in the fourth quarter of
2014, as compared with US$0.033 and
US$0.033, respectively in the third
quarter of 2014 and US$0.047 and
US$0.046, respectively, in the fourth
quarter of 2013.
Non-GAAP net income attributable to holders of ordinary shares
was US$0.6 million in the fourth
quarter of 2014, as compared with US$3.2
million in the third quarter of 2014 and US$2.9 million in the fourth quarter of 2013.
Non-GAAP basic and diluted earnings per ADS were US$0.020 and US$0.018, respectively, in the fourth quarter of
2014, as compared with US$0.089 and
US$0.088, respectively, in the third
quarter of 2014 and US$0.080 and
US$0.079, respectively, in the fourth
quarter of 2013.
Cash and Cash Equivalents
As of December 31, 2014, the
Company had US$103.2 million of cash
and cash equivalents, as compared with US$114.3 million as of December 31, 2013.
Capital Expenditures
The company had capital expenditures of US$1.6 million in the fourth quarter of 2014, as
compared with US$0.3 million in the
third quarter of 2014, and US$0.3
million in the fourth quarter of 2013. Total capital
expenditures for the full year of 2014, were US$2.6 million, as compared with US$5.3 million in the full year of 2013.
Our capital expenditures were used primarily for (i) purchase of
computer hardware and equipment, (ii) purchase of intangible
assets, (iii) purchase of franchises and online game licensing
rights for our pipeline and (iv) prepayments as deposits for land
use rights and building purchase. Actual future capital
expenditures may differ from the amounts indicated above.
In May 2013, the company entered
into a land pre-development cooperation agreement with respect to
the intention to purchase the land use rights of two parcels with
an aggregated area of approximately 23,300 square meters in
Songjiang District, Shanghai. The
total consideration was RMB8.9
million (US$1.4 million),
among which RMB4.4 million
(US$0.7 million) was paid in year
2013 and the rest was paid in the fourth quarter of 2014.
In December 2014, the company
entered into a land use right transfer agreement with Shanghai Land
and Resources Bureau to purchase the land use right of two parcels
of state-owned construction lands for considerations of
RMB11.0 million (US$1.8 million) and RMB10.4 million (US$1.7
million), respectively. Prepayments of RMB2.2 million (US$0.4
million) and RMB2.1 million
(US$0.3 million) were paid in
December 2014 and the rest of
considerations were paid in January
2015.
Share-based Compensation
Share-based compensation was US$0.5
million for the fourth quarter of 2014 as compared with
US$0.6 million in the third quarter
of 2014 and US$0.7 million in the
fourth quart of 2013. Total share-based compensation was
US$2.2 million in the full year of
2014, as compared with US$2.1 million
in the full year of 2013.
Share Repurchase Program
During the fourth quarter of 2014, Taomee had repurchased
138,207 ADSs. As of December 31,
2014, the Company has repurchased a total of 2,940,370 ADSs
under the Company's share repurchase program at an average price of
approximately US$5.0 per ADS.
Special Dividend
On January 26, 2015, Taomee
announced one-time cash dividend of US$0.0325 per ordinary share, or US$0.65 per ADS. Total cash dividend of
US$24.6 million was paid out on
February 17, 2015.
Investments in Equity Investees
In November 2014, Taomee entered
into an investment agreement with two unrelated parties to set up a
Beijing-based joint venture to
operate "the Voice Kids China" live show and other family
entertainment shows focusing on kids and teenagers. Taomee agreed
to acquire 20% of the joint venture for a cash consideration of
RMB25.0 million (approximately
$4.1 million), which has been fully
paid in December 2014.
In December 2014, Taomee increased
its equity shareholding in Shanghai Weiju Network Technology Co.,
Ltd (Shanghai Weiju) from 25% to 45% for a cash consideration of
RMB10.0 million (approximately
$1.6 million). Shanghai Weiju is a
Hi-tech toy design and R&D company and has launched its first
toy, Galaxy Zega Tank, a
hybrid of a smart toy plus mobile game in February 2015.
Unaudited Financial Results for Fiscal year 2014
Net Revenues
Total net revenues were US$42.2
million in 2014, representing a decrease of 12.7% from
US$48.4 million in 2013.
Net online business revenues were US$33.3
million in 2014, a decrease of 5.8% from US$35.3 million in 2013. The decrease was
primarily driven by the decrease in active paying accounts of our
virtual worlds, which reflected change of user behavior as more and
more children are shifting from web games to mobile games.
Net offline business revenues were 8.9 million in 2014, a
decrease of 31.7% from US$13.1
million in 2013. The decrease was primarily due to the
decrease in the Company's merchandise licensing and toys
businesses.
Cost of Services
Total cost of services was US$11.7
million in 2014, a decrease of 11.7% from US$13.3 million in 2013.
Online business related costs were US$6.5
million in 2014, a decrease of 14.5% from US$7.6 million in 2013. The decrease was
primarily due to a decrease in payroll expenses, amortization cost
associated with game licensing fees and royalties related to our
operation of certain third-party developed virtual worlds.
Offline business related costs were US$5.2 million in 2014, a decrease of 7.8% from
US$5.7 million in 2013. The decrease
was primarily due to a decrease in toy costs, while partially
offset by an increase in film production cost.
Total Operating Expenses
Total operating expenses were US$32.4
million in 2014, slightly increased from US$31.8 million in 2013.
- Product development expenses were US$14.4 million in 2014, an increase of 4.0% as
compared with US$13.9 million in
2013. The increase was primarily attributable to an increase
in payroll expenses and toy design fees, while was partially offset
by a decrease in rental expenses.
- Sales and marketing expenses was US$9.3
million in 2014, a slight decrease from US$9.4 million in 2013. The decrease was
primarily attributable to a decrease in payroll plus advertising
and promotion expenses, while partially offset by an increase in
film promotion cost.
- General and administrative expenses were US$13.5 million in 2014, an increase of 3.1% from
US$13.1 million in 2013. The
increase was primarily due to an increase in payroll expenses and
provision for bad debt and unrecoverable prepayments, while
partially offset by a decrease in professional service fees and
share-based compensation expenses.
- Other operating income was US$5.0
million in 2014, of which US$4.0
million was government subsidies. In 2013, other operating
income was US$5.7 million, of which
US$3.8 million was government
subsidies.
Profit/(Loss) from Operations
Loss from operations was US$1.9
million in 2014, as compared with a profit of US$3.3 million in 2013.
Share of Profit/(Loss) in Equity Method
Investments
Share of profit/loss in equity method investments was a loss of
US$0.4 million in 2014, as compared
with a profit of US$0.2 million in
2013.
Income Tax Benefit/(Expense)
Income tax benefit was US$2.2
million in 2014, as compared with an expense of US$1.4 million in 2013.
Net Income
Net income attributable to holders of ordinary shares was
US$1.0 million in 2014, as compared
with US$5.4 million in 2013.
Basic and diluted earnings per ADS were US$0.028 and US$0.028, respectively in 2014, as compared with
US$0.148 and US$0.146, respectively, in 2013.
Non-GAAP net income attributable to holders of ordinary shares
was US$4.8 million in 2014, as
compared with US$9.0 million in
2013.
Non-GAAP basic and diluted earnings per ADS were US$0.133 and US$0.132, respectively, in 2014, as compared with
US$0.245 and US$0.241, respectively, in 2013.
Recent Business Highlights
In December 2014: Taomee
launched the Korean version of Reverse World ("the Game") in Korea.
The Game has been distributed through the KAKAO Talk channel, which
is similar to Tencent's Wechat and Facebook's Whatsapp. The Game
was ranked the No. 1 free-download games and No. 7
top-grossing games on Google Play Korea for over three weeks and
one week, respectively.
On January 16, 2015: Taomee
exclusively launched the fourth season of its Seer TV animations,
Seer IV-Battle of Universal Force on iQiyi platform. The
show has achieved over 100 million page views with the season
finale becoming the No.1 top-searched content on iQiyi children
channel as of March 5, 2015. This TV
animation can also be viewed on Aniworld Satellite TV since
February 14, 2015.
On February 5, 2015: Taomee
released the third installment of its Mole movie franchise,
Legend of the Moles-The Magic Train Adventure in major
theatres throughout China.
Legend of the Moles is a 2D movie and sequel to earlier
movies released in August 2011 and
July 2012.
Outlook for First Quarter of 2015
Net revenues of the first quarter of 2015 are expected to be in
the range of US$8.5 million to US$9.0
million, which represents year-over-year decrease
approximately 23.1% to 27.4%. This forecast reflects the Company's
current and preliminary view of the operating results, and is
subject to future changes.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP net income attributable to the Company's
shareholders and non-GAAP earnings per ADS by excluding share-based
compensation and impairment charges from net income attributable to
the Company's shareholders and from the calculation of earnings per
ADS. The Company believes these non-GAAP financial measures are
important to help investors understand the Company's operating and
financial performance compare business trends among different
reporting periods on a consistent basis and assess the Company's
core operating results. The use of the above non-GAAP
financial measures has certain limitations. Share-based
compensation charge has been and will continue to be incurred and
is not reflected in the presentation of the non-GAAP financial
measures; it should be considered in the overall evaluation of our
results. None of the non-GAAP measures is a measure of net
income attributable to the Company's shareholders, operating
profit, operating performance or liquidity presented in accordance
with GAAP. We compensate for these limitations by providing the
relevant disclosure of our share-based compensation and impairment
charges in our reconciliations to the most directly comparable GAAP
financial measures, which should be considered when evaluating our
performance. These non-GAAP financial measures should be considered
in addition to financial measures prepared in accordance with GAAP,
but should not be considered a substitute for, or superior to,
financial measures prepared in accordance with GAAP.
Reconciliation of each of these non-GAAP financial measures to the
most directly comparable GAAP financial measure is set forth at the
end of this release.
Conference Call
The Company will host a conference call and live webcast at
8:00 a.m. ET (New York) on Tuesday,
March 17, 2015 (which is 8:00
p.m. in China on
Tuesday, March 17, 2015). A brief
presentation to accompany the conference call will be available on
the Company's IR website
(http://ir.taomee.com/phoenix.zhtml?c=243417&p=irol-reportsannual)
before the call.
The dial-in details for the live conference call are:
|
Conference
ID:
|
84220788
|
|
U.S.
toll-free:
|
+1-866-519-4004
|
|
Hong Kong toll-free:
|
800-906-601
|
|
International:
|
+65-6723-9381
|
|
China Mainland:
|
400-620-8038
|
|
Passcode:
|
Taomee
|
A live webcast and archive of the conference call will be
available on the Investor Relations section of Taomee's website at
http://edge.media-server.com/m/p/pw5nk2cc. A telephone replay of
the call will be available after the conclusion of the conference
call at 11:00 a.m. ET on March 17, 2015 through 08:59 a.m. ET, March 25,
2015. The dial-in details for the telephone replay are:
|
Conference ID:
|
84220788
|
|
International:
|
+612-8199-0299
|
|
China:
|
400-6322-162
|
About Taomee Holdings Limited
Taomee Holdings Limited ("Taomee" or "the Company") is
China's leader in children's
entertainment and media. Its award winning content offerings are
both engaging and educational, endearing it to children, as well as
to parents and teachers. The Company was founded in 2007 with the
mission to bring joy and inspiration to children. Its popular
character franchises, including SEER and MOLE'S WORLD, are
distributed online via virtual worlds, web games and mobile
applications, as well as through traditional media, including
animated box office films, TV series, books and consumer products,
most notably toys and trading cards. Its online community regularly
achieves top search ranking in China, Hong
Kong and Taiwan. Taomee has
been consistently recognized for its leadership and innovative
contributions to the children's market, including accolades from
China's Ministry of Culture and
the China Animation Association.
For more information, please visit:
http://www.taomee.com/en_taomee.html
- Visit online virtual world communities at www.61.com
- Watch animations and films at http://v.61.com/
- Download mobile games and applications at http://m.61.com/
- Share with other parents and caregivers at http://mama.61.com/
Safe Harbor Statements
This press release contains statements that may constitute
"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.
Forward-looking statements can be identified by words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to" or other similar expressions. Among other things, the
management's quotations and outlook information contain
forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements to
be materially different from those expressed or implied by the
forward-looking statements. Potential risks and uncertainties
include, but are not limited to: the Company's business strategies
and initiatives as well as business plans; future business
development, results of operations and financial condition;
expected changes in revenues and certain cost or expense items;
expectations with respect to increased revenue growth and the
Company's ability to sustain profitability; the Company's services
and products under development or planning; the Company's ability
to attract users and further enhance the Company's brand
recognition; and trends and competition in the children's
entertainment and media market and industry, including those for
online entertainment. Further information regarding these and other
risks is included in Taomee's annual report on Form 20-F and other
documents filed with the U.S. Securities and Exchange Commission.
All information provided in this press release is as of the date of
the press release, and the Company undertakes no obligation to
update any forward-looking statements to reflect subsequent
occurring events or circumstances, or changes in its expectations,
except as required under applicable law. Although the Company
believes that the expectations expressed in these forward looking
statements are reasonable, the Company cannot assure you that their
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results.
For further information, please contact
Angela Wang
Taomee Holdings Limited
+86-21-61280056-8651
ir@taomee.com
|
Taomee Holdings
Limited - Unaudited Consolidated Balance Sheets
|
|
|
In
USD
|
|
In
USD
|
|
December
31
|
|
December
31
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 103,173,555
|
|
$ 114,250,772
|
|
Short term
investment
|
-
|
|
2,992,343
|
|
Accounts receivable,
net
|
2,499,084
|
|
2,387,747
|
|
Inventory
|
238,055
|
|
196,757
|
|
Income tax
recoverable
|
797,711
|
|
402,460
|
|
Due from related parties
|
2,592,450
|
|
2,242,382
|
|
Prepayments and other current assets
|
4,128,248
|
|
2,904,695
|
|
Deferred tax assets, current
|
5,872,817
|
|
4,166,088
|
|
Total current
assets
|
119,301,920
|
|
129,543,244
|
|
|
|
|
|
Investments in equity
investees
|
16,138,860
|
|
14,047,509
|
|
Property and
equipment, net
|
1,813,660
|
|
1,840,419
|
|
Prepayments for land
use rights and building purchase
|
2,162,445
|
|
3,008,520
|
|
Acquired intangible
assets
|
1,113,495
|
|
1,252,572
|
|
Other
assets
|
1,331,363
|
|
1,496,242
|
|
TOTAL
ASSETS
|
$ 141,861,743
|
|
$ 151,188,506
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
$
786,446
|
|
$
1,549,908
|
|
Advance from customers
|
8,236,080
|
|
6,960,857
|
|
Due to related parties
|
422,019
|
|
369,983
|
|
Deferred revenue
|
11,768,665
|
|
12,340,821
|
|
Deferred tax liabilities, current
|
698,800
|
|
1,758,134
|
|
Accrued expenses and other current liabilities
|
4,814,555
|
|
6,279,858
|
|
Total current
liabilities
|
26,726,565
|
|
29,259,561
|
|
|
|
|
|
Equity
|
|
|
|
|
Taomee Holdings
Limited shareholders' equity
|
|
|
|
|
Ordinary shares
($0.00002 par value; 875,000,000 shares
authorized; 751,088,350 and 741,126,859 shares issued;
708,350,669 and 735,913,039 outstanding as of
December 31, 2013 and 2014, respectively)
|
15,022
|
|
14,823
|
|
Treasury stock
|
(11,521,316)
|
|
(1,198,904)
|
|
Additional paid-in
capital
|
76,308,327
|
|
73,757,483
|
|
Retained earnings
|
45,860,434
|
|
44,853,977
|
|
Accumulated other comprehensive income
|
4,188,419
|
|
4,342,755
|
|
Taomee Holdings
Limited shareholders' equity
|
114,850,886
|
|
121,770,134
|
|
Noncontrolling
interests
|
284,292
|
|
158,811
|
|
Total
equity
|
$
115,135,178
|
|
$
121,928,945
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
141,861,743
|
|
$
151,188,506
|
|
Taomee Holdings
Limited - Unaudited Consolidated Statements of
Operations
|
|
|
|
In USD, except for
share data
For three months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
Online business, net
|
|
$ 6,678,965
|
|
$ 8,854,919
|
|
$ 8,250,969
|
|
Offline business, net
|
|
924,982
|
|
3,488,097
|
|
2,689,419
|
|
Total net
revenues
|
|
7,603,947
|
|
12,343,016
|
|
10,940,388
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
|
|
|
Online business
|
|
(1,146,339)
|
|
(1,761,265)
|
|
(2,037,443)
|
|
Offline business
|
|
(841,233)
|
|
(1,785,338)
|
|
(894,106)
|
|
Total cost of
services
|
|
(1,987,572)
|
|
(3,546,603)
|
|
(2,931,549)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
5,616,375
|
|
8,796,413
|
|
8,008,839
|
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
Product development
|
|
(3,852,603)
|
|
(3,941,208)
|
|
(3,713,467)
|
|
Sales and marketing
|
|
(2,064,342)
|
|
(2,280,113)
|
|
(2,411,269)
|
|
General and administrative
|
|
(2,731,761)
|
|
(4,059,122)
|
|
(3,345,688)
|
|
Impairment loss on acquired intangible
assets
|
|
-
|
|
-
|
|
(180,263)
|
|
Other operating income
|
|
2,303,384
|
|
1,585,129
|
|
3,703,897
|
|
Total operating
expenses
|
|
(6,345,322)
|
|
(8,695,314)
|
|
(5,946,790)
|
|
|
|
|
|
|
|
|
Profit (loss) from
operations
|
|
(728,947)
|
|
101,099
|
|
2,062,049
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
1,040,010
|
|
642,387
|
|
632,310
|
|
Other income (loss),
net
|
|
(165,975)
|
|
186,162
|
|
275,363
|
|
Impairment loss on
investments in equity
investees
|
|
-
|
|
(1,400,000)
|
|
(370,407)
|
|
Income
(loss)before income taxes and
share of profit in equity method
investments
|
|
145,088
|
|
(470,352)
|
|
2,599,315
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
172,942
|
|
1,708,088
|
|
(996,509)
|
|
|
|
|
|
|
|
|
Share of profit
(loss) in equity method
investments
|
|
(189,500)
|
|
(104,567)
|
|
101,778
|
|
Net
income
|
|
128,530
|
|
1,133,169
|
|
1,704,584
|
|
|
|
|
|
|
|
|
Less: Net (loss)
profit attributable to
noncontrolling interest
|
|
(35,397)
|
|
(32,574)
|
|
(27,590)
|
|
|
|
|
|
|
|
|
Net income
attributable to holders of
ordinary shares
|
|
$ 163,927
|
|
$ 1,165,743
|
|
$ 1,732,174
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
-Basic
|
|
$ 0.005
|
|
$ 0.033
|
|
$ 0.047
|
|
-Diluted
|
|
$ 0.005
|
|
$ 0.033
|
|
$ 0.046
|
|
Weighted average
number of shares used
in calculation
|
|
|
|
|
|
|
|
- Basic
|
|
709,848,562
|
|
708,630,255
|
|
735,651,537
|
|
- Diluted
|
|
714,745,197
|
|
716,521,745
|
|
747,030,939
|
|
Weighted average
number of ADS used
in calculation
|
|
|
|
|
|
|
|
- Basic
|
|
35,492,428
|
|
35,431,513
|
|
36,782,577
|
|
- Diluted
|
|
35,737,260
|
|
35,826,087
|
|
37,351,547
|
|
|
|
|
|
|
|
|
Taomee Holdings
Limited - Unaudited Consolidated Statements of
Operations
|
|
In USD, except for
share data
For year
ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
Online business, net
|
$
33,292,449
|
|
$
35,330,152
|
|
Offline business, net
|
8,896,702
|
|
13,023,535
|
|
Total net
revenues
|
42,189,151
|
|
48,353,687
|
|
|
|
|
|
Cost of
services
|
|
|
|
|
Online business
|
(6,534,883)
|
|
(7,643,598)
|
|
Offline business
|
(5,182,265)
|
|
(5,620,619)
|
|
Total cost of
services
|
(11,717,148)
|
|
(13,264,217)
|
|
|
|
|
|
Gross
profit
|
30,472,003
|
|
35,089,470
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
Product development
|
(14,445,618)
|
|
(13,885,922)
|
|
Sales and marketing
|
(9,304,028)
|
|
(9,446,025)
|
|
General and administrative
|
(13,506,506)
|
|
(13,095,086)
|
|
Impairment loss on acquired intangible assets
|
(115,753)
|
|
(1,046,173)
|
|
Other operating income
|
5,020,065
|
|
5,708,455
|
|
Total
operating expenses
|
(32,351,840)
|
|
(31,764,751)
|
|
|
|
|
|
Profit (loss) from
operations
|
(1,879,837)
|
|
3,324,719
|
|
|
|
|
|
Interest income,
net
|
2,914,372
|
|
2,931,511
|
|
Other income
(loss), net
|
(453,379)
|
|
770,807
|
|
Impairment loss on
investments in equity investees
|
(1,400,000)
|
|
(370,407)
|
|
Income (loss)
before income taxes and share of profit in equity
method investments
|
(818,844)
|
|
6,656,630
|
|
|
|
|
|
Income tax (expense)
benefit
|
2,162,812
|
|
(1,419,063)
|
|
|
|
|
|
Share of (loss)
profit in equity method investments
|
(432,874)
|
|
207,766
|
|
Net
income
|
911,094
|
|
5,445,333
|
|
|
|
|
|
Less: Net profit
(loss) attributable to noncontrolling interests
|
(95,363)
|
|
4,073
|
|
|
|
|
|
Net income
attributable to holders of ordinary shares
|
$
1,006,457
|
|
$
5,441,260
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
-Basic
|
$
0.028
|
|
$
0.148
|
|
-Diluted
|
$
0.028
|
|
$
0.146
|
|
|
|
|
|
Weighted average
number of shares used in calculation
|
|
|
|
|
- Basic
|
712,973,565
|
|
733,322,620
|
|
- Diluted
|
719,852,640
|
|
746,384,929
|
|
Weighted average
number of ADS used in calculation
|
|
|
|
|
- Basic
|
35,648,678
|
|
36,666,131
|
|
- Diluted
|
35,992,632
|
|
37,319,246
|
|
Taomee Holdings
Limited - Unaudited Consolidated Other Comprehensive
Income
|
|
|
In
USD,
For three months
ended
|
|
December
31,
2014
|
September
30,
2014
|
December
31,
2013
|
|
Net income
|
$
128,530
|
$ 1,133,169
|
$ 1,704,584
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
Foreign currency
translation adjustments
|
273,356
|
140,967
|
524,181
|
|
|
|
|
|
Comprehensive
income
|
401,886
|
1,274,136
|
2,228,765
|
|
Comprehensive income
(loss) attributable to noncontrolling interest
|
(35,397)
|
(32,574)
|
(27,590)
|
|
Comprehensive income
attributable to Taomee Holdings Limited
|
437,283
|
1,306,710
|
2,256,355
|
|
|
|
|
|
|
|
|
|
In
USD,
For the year
ended
|
|
December
31,
2014
|
December
31,
2013
|
|
Net income
|
$
911,094
|
$
5,445,333
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
Foreign currency
translation adjustments
|
(154,336)
|
1,787,185
|
|
|
|
|
Comprehensive
income
|
756,758
|
7,232,518
|
|
Comprehensive income
(loss) attributable to noncontrolling interest
|
(95,363)
|
4,073
|
|
Comprehensive income
attributable to Taomee Holdings Limited
|
852,121
|
7,228,445
|
|
|
|
|
Taomee Holdings
Limited - Reconciliation of Non-GAAP and GAAP
Results
|
|
|
|
In USD, except for
share data
For three months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2014
|
|
2013
|
|
Reconciliation
from Non-GAAP
measures to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable
to holders of ordinary shares
|
|
$
643,105
|
|
$
3,160,468
|
|
$ 2,943,530
|
|
Share-based
compensation
|
|
(479,178)
|
|
(594,725)
|
|
(660,686)
|
|
Impairment loss on
acquired
intangible assets
|
|
-
|
|
-
|
|
(180,263)
|
|
Impairment loss on
investments in
equity investees
|
|
-
|
|
(1,400,000)
|
|
(370,407)
|
|
GAAP net income
attributable to
holders of ordinary shares
|
|
$ 163,927
|
|
$
1,165,743
|
|
$
1,732,174
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per
ADS
|
|
|
|
|
|
|
|
-Basic
|
|
$
0.020
|
|
$
0.089
|
|
$
0.080
|
|
-Diluted
|
|
$
0.018
|
|
$
0.088
|
|
$
0.079
|
|
|
In USD, except for
share data
For the year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
Reconciliation
from Non-GAAP
measures to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable
to holders of ordinary shares
|
|
|
$
4,750,642
|
|
$
9,000,285
|
|
Share-based
compensation
|
|
|
(2,228,432)
|
|
(2,142,445)
|
|
Impairment loss on
acquired
intangible assets
|
|
|
(115,753)
|
|
(1,046,173)
|
|
Impairment loss on
investments in
equity investees
|
|
|
(1,400,000)
|
|
(370,407)
|
|
GAAP net income
attributable to
holders of ordinary shares
|
|
|
$
1,006,457
|
|
$
5,441,260
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per
ADS
|
|
|
|
|
|
|
-Basic
|
|
|
$
0.133
|
|
$
0.245
|
|
-Diluted
|
|
|
$
0.132
|
|
$
0.241
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/taomee-reports-fourth-quarter-and-fiscal-year-2014-unaudited-financial-results-300051596.html
SOURCE Taomee Holdings Limited