BEIJING, June 15, 2016 /PRNewswire/ -- KongZhong
Corporation (NASDAQ: KZ), a leading online game publisher and
developer in the PRC, today announced its unaudited financial
results for the first quarter of 2016.
First Quarter 2016 Financial Highlights
- Total revenues for the first quarter of 2016 were US$ 51.44 mn, a 21.11% increase from the fourth
quarter of 2015 and a 1.84% increase from the same period last
year.
- Total gross profit was US$ 22.10
mn, a 16.18% increase from the fourth quarter of 2015 and a
15.62% increase from the same period last year.
- Net income was US$ 25.60 mn, a
319.72% increase from the fourth quarter of 2015 and a 510.03%
increase from the same period last year, which included the
realized gain of US$ 19.78 mn on a
partial disposal of the shares in investment of Ourgame. Diluted
net income per American Depositary Shares ("ADS") was US$ 0.54.
- Non-GAAP net income was US$ 6.73
mn, a 3.71% decrease from the fourth quarter of 2015 but a
30.07% increase from the same period last year, with Non-GAAP
diluted net income per ADS of US$
0.14 (Non-GAAP Financial Measures are described and
reconciled to the corresponding GAAP measures in the section titled
"Non-GAAP Financial Measures").
- As of March 31st 2016, the
Company had US$ 163.49 mn in cash and
cash equivalents, term deposits, held-to-maturity securities,
available-for-sale securities and restricted cash or US$ 3.47 per ADS in cash and cash equivalents,
term deposits, held-to-maturity securities, available-for-sale
securities and restricted cash, net of a US$
65.44 mn short-term bank loan. The mark to fair value of the
Company's investments in Ourgame and Forgame were priced at
HK$ 4.35 and HK$ 11.44 per ordinary share, respectively (or
US$ 11.63mn and US$ 17.78 mn, respectively) as of March 31st 2016, compared to the mark to fair
value of the Company's investments in Ourgame and Forgame which
were priced at HK$ 5.75 and
HK$ 13.04 per ordinary share,
respectively (or US$ 44.47 mn and
US$ 20.29 mn, respectively) as
of December 31st 2015.
Business Highlights
- The Company will continue to concentrate its efforts in
Internet Games and Mobile games around its War Saga game platform,
China's leading military genre
online game platform. The Company plans to test and release
additional mobile and PC games around the War Saga theme in
2016,
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2015
|
|
2015
|
|
2016
|
|
US$ in
thousands
|
|
US$ in
thousands
|
|
US$ in
thousands
|
|
|
|
|
|
|
Revenues
|
50,512
|
|
42,475
|
|
51,442
|
Internet Games
|
26,364
|
|
30,476
|
|
37,014
|
Mobile Games
|
10,555
|
|
1,983
|
|
4,499
|
WVAS
|
13,593
|
|
10,016
|
|
9,929
|
|
|
|
|
|
|
Cost of
Revenues
|
31,400
|
|
23,454
|
|
29,344
|
Internet Games
|
14,325
|
|
14,366
|
|
17,813
|
Mobile Games
|
6,667
|
|
1,556
|
|
4,089
|
WVAS
|
10,408
|
|
7,532
|
|
7,442
|
|
|
|
|
|
|
Gross
Profit
|
19,112
|
|
19,021
|
|
22,098
|
Internet Games
|
12,039
|
|
16,110
|
|
19,201
|
Mobile Games
|
3,888
|
|
427
|
|
410
|
WVAS
|
3,185
|
|
2,484
|
|
2,487
|
|
|
|
|
|
|
Gross
Margin
|
38%
|
|
45%
|
|
43%
|
Internet Games
|
46%
|
|
53%
|
|
52%
|
Mobile Games
|
37%
|
|
22%
|
|
9%
|
WVAS
|
23%
|
|
25%
|
|
25%
|
Revenues
Total revenues for the first quarter of 2016 were US$ 51.44 mn, a 21.11% increase from the fourth
quarter of 2015 and a 1.84% increase from the same period last
year.
Internet Games Revenues
Internet Game ("Net Game") revenues were US$ 37.01 mn in the first quarter of 2016, an
increase of 21.45% from the fourth quarter of 2015 due to the
release of World of Warships on November
27th 2015 and the release of the first expansion pack for
Guild Wars 2: Heart of Thorns, to the mainland China market on November 20th 2015.
For the first quarter of 2016, mainland China online game operations achieved average
monthly active users ("MAUs") of 2.74 mn and aggregated monthly
paying accounts ("APAs") of 455k with monthly average revenue per
user ("ARPU") of RMB 170.
|
Three Months
Ended
|
March
31,
2015
|
December
31,
2015
|
March
31,
2016
|
MAU
|
1,909k
|
2,690k
|
2,743k
|
APA
|
333k
|
448k
|
455k
|
ARPU
|
163
|
144
|
170
|
Internet game revenues made up 72.0% of total revenues in the
first quarter of 2016.
Mobile Games Revenues
Total mobile game revenues were US$ 4.50
mn, a 126.88% increase from the fourth quarter of 2015 but a
57.38% decrease from the same period last year. The increase in
mobile game revenues was due to the newly launched mobile game,
Rush Three Kingdoms in Japan on
March 10th 2016, and the release of
Rush Three Kingdoms in Southeast
Asia on March 17th
2016. In the Chinese domestic
market, we released the Battle of Warship on March 16th 2016 and Battleship Girl on
April 20th 2016 on the IOS and
Android smartphone platforms.
Total mobile game revenues made up 8.7% of total revenues in the
first quarter of 2016.
WVAS Revenues
WVAS revenues were US$ 9.93mn, a
0.87% decrease from the fourth quarter of 2015 and a 26.96%
decrease from the same period of last year.
WVAS made up 19.3% of total revenues in the first quarter of
2016.
Gross Profit
Total gross profit for the first quarter of 2016 was
US$22.10 mn, a 16.18% increase from
gross profit in the fourth quarter of 2015 and a 15.62% increase
from the same period last year.
Total gross margin was 43.0% in the first quarter of 2016
compared to gross margins of 44.8% in the fourth quarter of
2015.
Internet Game Gross Profit
Internet game gross profit was US$ 19.20
mn, a 19.19% increase from gross profits in the fourth
quarter of 2015 and a 59.49% increase from the same period last
year. Internet game gross margin was 51.9% compared to 52.9% in the
fourth quarter of 2015.
Mobile Game Gross Profit
Mobile games gross profit was US$ 0.41
mn, a 3.98% decrease from the fourth quarter of 2015 and an
89.45% decrease from the same period last year. The decrease in
gross profit was due to recognition of prior prepaid license fees
for offline mobile games that will not launched in future yet.
Mobile games gross margin was 9.1% compared to 21.5% in the fourth
quarter of 2015.
WVAS Gross Profit
WVAS gross profit was US$2.49 mn,
a 0.12% increase from the fourth quarter of 2015 but a 21.92%
decrease from the same period last year. WVAS gross margin was
25.0% compared to 24.8% in the fourth quarter of 2015.
Operating Expenses
Total operating expenses in the first quarter of 2016 were
US$17.48 mn compared to US$16.80 mn in the fourth quarter of 2015.
Product development expenses in the first quarter of 2016 were
US$ 6.16 mn compared to US$ 6.18 mn in the fourth quarter of 2015.
Sales and marketing expenses in the first quarter of 2016 were
US$ 9.07 mn compared to US$6.35 mn in the fourth quarter of 2015. Sales
and marketing expenses increased primarily due to the increased
promotion activities of some of our Internet games and the newly
launched smartphone games in 1Q 2016.
General and administrative expenses in the first quarter of 2016
were US$2.25 mn compared to
US$4.27 mn in the fourth quarter of
2015. General and administrative expenses moderated primarily due
to the decreased consulting and travel related expenses relating to
our corporate investment activities, and bad debt provision
relating to our WVAS business in 1Q16 compared to 4Q 2015.
The Company's total headcount in the first quarter of 2016 was
789 staff compared to 793 staff at the end of the fourth quarter of
2015.
Earnings
US GAAP net income and diluted income per ADS were US$ 25.60 mn and US$
0.54, respectively. Non-GAAP net income and diluted income
per ADS were US$ 6.73 mn and
US$ 0.14, respectively.
Total ADS on a diluted basis outstanding during the first
quarter of 2016 were 47.50 mn,
compared to 47.30 mn outstanding
during the fourth quarter of 2015.
For the purpose of
earnings
per share calculation
|
Number during
three
months ended
December
31,2015
|
Number during
three
months ended
March 31,
2016
|
ADS (in
mns)
|
46.87
|
47.10
|
Add: Dilution impact
from
options and nonvested shares
|
0.27
|
0.23
|
Warrants issued to
business
partners
|
0.16
|
0.17
|
ADS on diluted
basis
|
47.30
|
47.50
|
Balance Sheet
As of March 31, 2016, the Company
had US$ 163.49mn in cash and cash
equivalents, term deposits, held-to-maturity securities,
available-for-sale securities and restricted cash or US$ 3.47 per ADS in cash and cash equivalents,
term deposits, held-to-maturity securities, available-for-sale
securities and restricted cash, net of a US$
65.44mn short-term bank loan. The mark to fair value of the
Company's investments in Ourgame and Forgame were priced at
HK$ 4.35 and HK$ 11.44 per ordinary share, respectively (or
US$ 11.63mn and US$ 17.78mn, respectively) as of March 31,2016, compared to the mark to fair value
of the Company's investments in Ourgame and Forgame which were
priced at HK$ 5.75 and HK$ 13.04 per ordinary share, respectively (or
US$ 44.47mn and US$ 20.29mn, respectively) as of December 31, 2015.
Investment in Ourgame
In November 2015, the Company
entered into an agreement to partially dispose of its investment in
Ourgame to Glassy Mind Holdings Limited, a third party, at a price
of HK$6.1062 per share, for a total
consideration of approximately HK$239.4
million (equivalent to approximately US$30.9 mn), with approximately 80% of the total
consideration to be paid in cash immediately upon the completion of
the sale and the remaining consideration to be paid in cash on
September 30, 2016. The sale was
completed in February 2016 and the
Company received US$25.1 million in
February 2016. The Company held a
2.63% interest in Ourgame thereafter. In the first quarter of 2016,
the Company recognized a realized gain of US$19.78mn on the partial disposal of the shares
in Ourgame in the statements of comprehensive income (loss). The
cost of securities sold is determined based on specific
identification method.
Recent Developments
On June 29, 2015, the Company
announced that its board of directors (the "Board") had received a
preliminary non-binding proposal letter from Leilei Wang, chairman and chief executive
officer of the Company, and IDG-Accel China Growth Fund II L.P. to
acquire all of the outstanding ordinary shares of the Company not
owned by them or their affiliates for US$8.56 in cash per American depositary share
(the "ADS", each representing forty ordinary shares) (the "Going
Private Proposal").
On July 8, 2015, the Company
announced that the Board has formed a special committee (the
"Special Committee") consisting of two independent directors,
Hope Ni and Xiaolong Li, and delegated to the Special
Committee the exclusive power and authority of the Board to, among
other things, evaluate and respond to the Going Private Proposal.
Ms. Ni is serving as the chair of the Special Committee.
On November 3, 2015, the Company
announced that the Special Committee has retained Duff &
Phelps, LLC and Duff & Phelps Securities LLC as its financial
advisors and Skadden, Arps, Slate, Meagher & Flom as its legal counsel in
connection with its review and evaluation of the Going Private
Proposal.
The Board cautions the Company's shareholders and others
considering trading in the Company's securities that no decisions
have been made by the Special Committee or the Company with respect
to the Company's response to the Going Private Proposal. There can
be no assurance that any definitive offer will be made, that any
agreement will be executed or that this or any other proposed
transaction involving the Company, its securities and/or its assets
will be approved or consummated. The Company does not undertake any
obligation to provide any updates with respect to this or any other
proposed transaction, except as required under applicable law.
Conference Call
KongZhong's management will hold a conference call and live
webcast to discuss the results at 7:30 PM
Eastern Standard Time (EST) on Wednesday, June 15, 2016 (7:30 AM Beijing/Hong
Kong time, Thursday, June 16,
2016)
The Company welcomes all interested parties to participate in
the live conference call. An Operator will greet you and ask for
the Conference ID shown as following.
Conference ID: 23951963
U.S. Toll Free
Dial-in Number
|
+1 866 519 4004
|
U.S. Dial-in
Number
|
+1 845 675 0437
|
Hong Kong Toll Free
Dial-in Number
|
800 906 601
|
Hong Kong Dial-in
Number
|
+852 3018 6771
|
Mainland China
Dial-in Number
|
800 819 0121, 400 620 8038
|
International Dial-in
Number
|
+65 6713 5090
|
The live conference call via webcast and archive replay will be
available on the Investor Relations section of KongZhong's website
at http://ir.kongzhong.com. The archive replay will be available on
the website shortly after the call.
A dial-in replay of the conference call will be available until
June 23, 2016
(EST):
U.S. Toll Free
Dial-in Number
|
+1 855 452 5696
|
U.S. Dial-in
Number
|
+1 646 254 3697
|
Hong Kong Toll Free
Dial-in Number
|
800 963 117
|
Hong Kong Dial-in
Number
|
+852 3051 2780
|
Mainland China Toll
Free Dial-in Number
|
800 870 0206, 400 602 2065
|
International Dial-in
Number
|
+61 2 8199 0299
|
About KongZhong
KongZhong Corporation (NASDAQ: KZ), listed on Nasdaq in 2004, is
a leading online game developer and operator in China. KongZhong operates three main business
units, namely Internet Games, Mobile Games and WVAS. Under Internet
Games, KongZhong operates the largest Chinese military gaming
platform under the "WAR SAGA" brand, which includes games such as
World of Tanks, World of Warplanes and World of Warships. KongZhong
has the exclusive publishing rights for World of Tanks, World of
Warplanes, World of Warships, Guild Wars 2, Blitzkrieg 3 and other
titles in Mainland China.
KongZhong entered the smartphone game industry in 2011 through
an acquisition of smartphone game engine and has expanded its
mobile game development team across 4 cities across Mainland China.
KongZhong offers popular mobile games in China and overseas with over 10 smartphone
games across various genres being under development, including RPG,
RTS, military, fantasy and etc. For more information, please visit
http://ir.kongzhong.com.
Safe Harbor Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements include, without limitation,
statements regarding trends in the wireless value-added services,
wireless media, mobile games and online games industries and our
future results of operations, financial condition and business
prospects. Although such statements are based on our own
information and information from other sources we believe to be
reliable, you should not place undue reliance on them. These
statements involve risks and uncertainties, and actual market
trends and our results may differ materially from those expressed
or implied in these forward looking statements for a variety of
reasons. Potential risks and uncertainties include, but are
not limited to, continued competitive pressure in China's wireless value-added services,
wireless media, mobile games and online games industries and the
effect of such pressure on revenues; our ability to develop new
products that are commercially successful; unpredictable changes in
technology, consumer demand and usage preferences in the markets we
operate; our ability to protect our intellectual property rights;
the short operating history of certain of our business segments, in
particular the online games segment; the state of and any
change in our relationship with China's telecommunications operators; our
dependence on the billing systems of telecommunications operators
for our performance; the outcome of our investment of operating
income generated from the WVAS segment into the development of our
wireless Internet, mobile games and online games segments; changes
in the regulations or policies of the Ministry of Industry and
Information Technology and other government authorities relevant to
our businesses; and changes in political, economic, legal and
social conditions in China,
including the Chinese government's policies with respect to
economic growth, foreign exchange, foreign investment and entry by
foreign companies into China's
telecommunications and online games markets. For additional
discussion of these risks and uncertainties and other factors,
please see the documents we file from time to time with the
Securities and Exchange Commission. We assume no obligation to
update any forward-looking statements, which apply only as of the
date of this press release.
KongZhong
Corporation
|
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
(Unaudited, US$ in thousands, except per share and
share data)
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2015
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
50,512
|
|
42,475
|
|
51,442
|
|
|
Cost of
revenues
|
|
31,400
|
|
23,454
|
|
29,344
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
19,112
|
|
19,021
|
|
22,098
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Product development
|
|
6,118
|
|
6,176
|
|
6,158
|
|
|
Sales and marketing
|
|
6,232
|
|
6,353
|
|
9,075
|
|
|
General and administrative
|
|
3,838
|
|
4,267
|
|
2,250
|
|
|
Total operating
expenses
|
|
16,188
|
|
16,796
|
|
17,483
|
|
|
|
|
|
|
|
|
|
|
|
Government
subsidy
|
|
214
|
|
769
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
3,138
|
|
2,994
|
|
4,686
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,640
|
|
3,879
|
|
2,245
|
|
|
Interest
expense
|
|
(183)
|
|
(88)
|
|
(207)
|
|
|
Imputed interest on
long-term liabilities
|
|
(140)
|
|
-
|
|
-
|
|
|
Exchange
loss
|
|
(73)
|
|
(141)
|
|
(147)
|
|
|
Gain on sale of
available-for-sale securities
|
|
-
|
|
-
|
|
19,781
|
|
|
Income before
income tax expense, loss on equity
method investments
|
|
4,382
|
|
6,644
|
|
26,358
|
|
|
Income tax
expense
|
|
(160)
|
|
(321)
|
|
(208)
|
|
|
Loss on equity method
investments
|
|
(25)
|
|
(223)
|
|
(547)
|
|
|
Net
income
|
|
4,197
|
|
6,100
|
|
25,603
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS,
basic
|
|
0.09
|
|
0.13
|
|
0.54
|
|
|
Earnings per ADS,
diluted
|
|
0.09
|
|
0.13
|
|
0.54
|
|
|
Weighted average ADS
outstanding (million)
|
|
46.61
|
|
46.87
|
|
47.10
|
|
|
Weighted average ADS
used in diluted EPS calculation (million)
|
|
46.85
|
|
47.30
|
|
47.50
|
|
|
Net income
|
|
4,197
|
|
6,100
|
|
25,603
|
|
|
Other comprehensive
income
|
|
8,000
|
|
4,759
|
|
(23,202)
|
|
|
Total comprehensive
income
|
|
12,197
|
|
10,859
|
|
2,401
|
|
|
|
|
|
|
|
|
|
|
|
|
KongZhong
Corporation
|
Condensed
Consolidated Balance Sheets
|
(Unaudited, US$ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
As of
March 31,
|
|
As of
December 31,
|
|
As of
March 31,
|
|
2015
|
|
2015
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
85,168
|
|
38,304
|
|
66,751
|
|
Term deposits
|
|
16,088
|
|
25,121
|
|
124
|
|
Available-for-sale
securities
|
|
46,062
|
|
64,756
|
|
29,414
|
|
Held-to-maturity securities
|
|
20,667
|
|
26,747
|
|
47,361
|
|
Accounts receivable (net)
|
|
29,235
|
|
24,485
|
|
29,146
|
|
Restricted cash
|
|
61,286
|
|
58,467
|
|
67,015
|
|
Other current assets
|
|
36,990
|
|
72,717
|
|
84,511
|
|
Total current
assets
|
|
295,496
|
|
310,597
|
|
324,322
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Rental deposits
|
|
1,440
|
|
1,397
|
|
1,464
|
|
Intangible assets (net)
|
|
52,101
|
|
12,516
|
|
11,499
|
|
Property and equipment (net)
|
|
4,902
|
|
4,654
|
|
4,130
|
|
Long-term investments
|
|
1,076
|
|
4,773
|
|
5,940
|
|
Goodwill
|
|
89,675
|
|
84,770
|
|
85,200
|
|
Restricted cash
|
|
10,816
|
|
-
|
|
18,263
|
|
Total non-current
assets
|
|
160,010
|
|
108,110
|
|
126,496
|
|
Total
assets
|
|
455,506
|
|
418,707
|
|
450,818
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated variable interest entities
("VIE") without recourse to KongZhong
Corporation of $33,403, $28,063 and
$31,099 as of March 31, 2015, December
31, 2015 and March 31, 2016,
respectively)
|
|
33,455
|
|
28,075
|
|
31,611
|
|
Short-term bank
loan
(including short-term
bank loan of the
consolidated VIE without recourse to
KongZhong Corporation of $nil, $nil and
$15,474 as of March 31, 2015, December
31, 2015 and March 31, 2016,
respectively)
|
|
49,963
|
|
49,963
|
|
65,437
|
|
Deferred revenue
(including deferred revenue of the
consolidated VIE without recourse to
KongZhong Corporation of $5,013, $7,888
and $17,188 as of March 31, 2015,
December 31, 2015 and March 31, 2016,
respectively)
|
|
5,042
|
|
7,917
|
|
17,218
|
|
Other current
liabilities
(including other current liabilities of the
consolidated VIE without recourse to
KongZhong Corporation of $15,138,
$15,142 and $16,400 as of March 31,
2015, December 31, 2015 and March 31,
2016, respectively)
|
|
23,472
|
|
20,991
|
|
22,134
|
|
Total current
liabilities
|
|
111,932
|
|
106,946
|
|
136,400
|
|
|
|
|
|
|
|
|
|
Non-current
Liabilities
|
|
|
|
|
|
|
|
Other long-term
liabilities
(including other long-term liabilities of the
consolidated VIE without recourse to
KongZhong Corporation of $10,000, $nil
and $nil as of March 31, 2015, December
31, 2015 and March 31, 2016, respectively)
|
|
10,000
|
|
-
|
|
-
|
|
Total
liabilities
|
|
121,932
|
|
106,946
|
|
136,400
|
|
Shareholders'
equity
|
|
333,574
|
|
311,761
|
|
314,418
|
|
Total liabilities
and shareholders' equity
|
|
455,506
|
|
418,707
|
|
450,818
|
|
|
|
|
|
|
|
|
|
|
KongZhong
Corporation
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited, US$ in
thousands)
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2015
|
|
2016
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net income (loss)
|
|
4,197
|
|
25,603
|
|
Adjustments to reconcile net income to net cash
provided by operating activities
|
|
|
|
|
|
Depreciation and amortization
|
|
3,998
|
|
1,691
|
|
Gain on sale of
available-for-sale securities
|
|
-
|
|
(19,781)
|
|
Imputed interest on long-term liabilities
|
|
140
|
|
-
|
|
Loss on equity method
investments
|
|
25
|
|
547
|
|
Share-based compensation
|
|
234
|
|
122
|
|
Changes in operating assets and liabilities
|
|
(3,124)
|
|
9,604
|
|
Net Cash Provided by
Operating Activities
|
|
5,470
|
|
17,786
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
Proceeds from disposal of term deposits
|
|
815
|
|
24,881
|
|
Acquisition of equity
method investment
|
|
(285)
|
|
-
|
|
Acquisition of cost
method investment
|
|
-
|
|
(920)
|
|
Temporary
advances
|
|
(2,985)
|
|
-
|
|
Purchase of held-to-maturity securities
|
|
(17,699)
|
|
(40,313)
|
|
Purchase of available-for-sale securities
|
|
(16,876)
|
|
(255)
|
|
Proceeds from disposal
of available-for-sale securities
|
|
-
|
|
25,139
|
|
Proceeds from disposal of held-to-maturity securities
|
|
21,300
|
|
20,032
|
|
Purchase of property and equipment
|
|
(55)
|
|
(96)
|
|
Addition of restricted
cash
|
|
(8,145)
|
|
(26,260)
|
|
Loans to equity method
investee
|
|
(7,618)
|
|
(6,964)
|
|
Net Cash Used in
Investing Activities
|
|
(31,548)
|
|
(4,756)
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
Proceeds from exercise of employee stock options
|
|
-
|
|
21
|
|
Deferred payments for intangible assets
|
|
(407)
|
|
-
|
|
Proceeds from bank borrowing
|
|
7,534
|
|
15,324
|
|
Net Cash Used in
Financing Activities
|
|
7,127
|
|
15,345
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(974)
|
|
72
|
|
|
|
|
|
|
|
Net decrease in Cash
and Cash Equivalents
|
|
(19,925)
|
|
28,447
|
|
Cash and Cash
Equivalents, Beginning of Period
|
|
105,093
|
|
38,304
|
|
Cash and Cash
Equivalents, End of Period
|
|
85,168
|
|
66,751
|
|
Non-GAAP Financial
Measures
|
|
To supplement the
unaudited condensed statements of comprehensive income presented in
accordance with US GAAP, the Company uses non-GAAP financial
measures (Non-GAAP Financial Measures) of net income and net income
per diluted ADS, which are adjusted from results based on GAAP to
exclude certain infrequent or unusual or non-cash based expenses,
gains and losses. The Non-GAAP Financial Measures are provided as
additional information to help both management and investors
compare business trends among different reporting periods on a
consistent and more meaningful basis and enhance investors' overall
understanding of the Company's current financial performance and
prospects for the future.
The Non-GAAP Financial Measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results. In
addition, the Company's calculation of the Non-GAAP Financial
Measures may be different from the calculation used by other
companies, and therefore comparability may be limited.
For the periods presented, the Company's non-GAAP gross profit
excludes, as applicable, impairment loss on intangible
assets. In addition, the Company's non-GAAP net income and
non-GAAP net income per diluted ADS exclude, as applicable, the
amortization of intangibles, share-based compensation expense,
imputed interest on long-term liabilities, as well as investment
gain are adjusted for the dilution impact on ADS numbers from stock
options, non-vested shares and warrants.
Reconciliation of the Company's Non-GAAP financial measures to the
GAAP financial measures is set forth below.
|
|
(US$ in thousands,
except per share and share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
2015
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
4,197
|
|
6,100
|
|
25,603
|
|
|
Share-based
compensation
|
234
|
|
344
|
|
122
|
|
|
Imputed interest on
long-term liabilities
|
140
|
|
-
|
|
-
|
|
|
Gain on sale of
available-for-sale securities
|
-
|
|
-
|
|
(19,781)
|
|
|
Amortization of
intangibles
|
600
|
|
541
|
|
782
|
|
|
Non-GAAP net
income
|
5,171
|
|
6,985
|
|
6,726
|
|
|
|
|
|
|
|
|
|
|
Weighted average ADS
used in diluted EPS calculation (million)
|
46.85
|
|
47.30
|
|
47.50
|
|
|
Non-GAAP diluted net
income per ADS
|
0.11
|
|
0.15
|
|
0.14
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kongzhong-corporation-reports-first-quarter-2016-unaudited-financial-results-300284939.html
SOURCE KongZhong Corporation