TRADE MEDIA HOLDINGS LTD, AND SUBSIDIARIES
(PREDECESSOR TO GLOBAL SOURCES LTD.)
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
At December 31 | At March 31 | |||
1999 | 2000 | |||
(Unaudited) | ||||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents..................................................................................... | $15,433 | $14,650 | ||
Accounts receivable, net........................................................................................ | 7,126 | 6,586 | ||
Receivables from sales representatives................................................................. | 6,172 | 7,510 | ||
Inventory of paper.................................................................................................. | 583 | 527 | ||
Prepaid expenses and other current assets............................................................. | 3,227 | 2,527 | ||
Total Current Assets....................................................................................... | 32,541 | 31,800 | ||
Property and equipment, net...................................................................................... | 9,788 | 10,427 | ||
Intangible assets, net.................................................................................................. | 745 | 652 | ||
Long term investments .............................................................................................. | - | 10,000 | ||
Bonds held to maturity, at amortized cost ............................................................... | 2,348 | 2,379 | ||
Loan to chief executive officer ................................................................................. | - | 5,009 | ||
Other assets................................................................................................................. | 1,223 | 1,214 | ||
Total Assets...................................................................................................... | $46,645 | $61,481 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Accounts payable................................................................................................... | $ 3,469 | $ 2,375 | ||
Deferred income and customer prepayments........................................................ | 15,139 | 15,173 | ||
Accrued liabilities.................................................................................................. | 7,069 | 5,597 | ||
Short-term loan ...................................................................................................... | - | 13,260 | ||
Income taxes payable............................................................................................. | 314 | 433 | ||
Total Current Liabilities................................................................................ | 25,991 | 36,838 | ||
Liabilities for incentive and bonus plan..................................................................... | 3,540 | 3,213 | ||
Amount due to Parent Company............................................................................... | 11,404 | 11,404 | ||
Total Liabilities................................................................................................ | 40,935 | 51,455 | ||
Shareholder's equity: | ||||
Ordinary shares, US$0.01 par value; 50,000,000 shares authorized; | ||||
25,051,380 shares issued and outstanding...................................?????????? | 251 | 251 | ||
Additional paid in capital (Note 1) ????..????????????????????????????... Retained earnings...............................................................................................?? | - 5,459 | 64,000 842 | ||
Less : Unearned compensation (Note 2) ?????????????????????????????? | - | (55,067) | ||
Total shareholders' equity............................................................................. | 5,710 | 10,026 | ||
Total liabilities and shareholders' equity..................................................... | $46,645 | $61,481 | ||
Note : 1. Reflects the non-cash compensation resulting from the transfer of shares from the Parent Company to the chairman and chief executive officer of the Company.
2. Reflects the remaining unearned non-cash compensation as at March 31, 2000 resulting from the transfer of shares from the Parent Company to the chairman and chief executive officer of the Company. The Company will recognize non-cash compensation expense over approximately 10 years.
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TRADE MEDIA HOLDINGS LTD. AND SUBSIDIARIES
(PREDECESSOR TO GLOBAL SOURCES LTD.)
CONSOLIDATED STATEMENTS OF INCOME
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
Three months ended March 31, | |||
1999 | 2000 | ||
(Unaudited) | (Unaudited) | ||
Revenues: | |||
Online advertising services......................................................................... | $ 5,320 | $ 11,130 | |
Subscriptions and print advertising services.............................................. | 15,827 | 12,978 | |
Global transaction software services.......................................................... | 161 | 107 | |
Other............................................................................................................ | 741 | 1,119 | |
22,049 | 25,334 | ||
Cost of Revenues........................................................................................... | 7,029 | 8,648 | |
Gross Profit................................................................................................... | 15,020 | 16,686 | |
Operating Expenses: | |||
Circulation, general and administrative..................................................... | 10,731 | 11,549 | |
Online services development..................................................................... | 748 | 897 | |
Non-cash compensation expense (Note 3) .................................??????.. | - | 8,933 | |
Amortization of intangibles........................................................................ | 93 | 93 | |
Total Operating Expenses........................................................................... | 11,572 | 21,472 | |
Income/(Loss) from Operations.................................................................. | 3,448 | (4,786) | |
Interest expense.......................................................................................... | (84) | (30) | |
Interest income........................................................................................... | 119 | 77 | |
Foreign exchange gains (losses), net??????????????????????????.... | (10) | 383 | |
Income/(Loss) before Income Taxes..........................................??.??.??.. | 3,473 | (4,356) | |
Income Tax Provision.................................................................................. | (279) | (261) | |
Net Income/(Loss) ????????????????????????????????...................... | $ 3,194 | $ (4,617) | |
Retained earnings brought forward .......................................................... | $ 9,435 | $ 5,459 | |
Retained earnings carried forward ........................................................... | $ 12,629 | $ 842 | |
Basic and diluted net income/(loss) per share........................................... | $ 0.13 | $ (0.18) | |
Net Income before non-cash compensation expense ????...????????... | $ 3,194 | $ 4,316 | |
Basic and diluted net income per share before non-cash compensation expense ??????????????????..??????????????????. |
$ 0.13 |
$ 0.17 | |
Shares used in basic and diluted net income per share calculations (Note 4) ??????????????????????????????????????????????????... |
25,051,380 |
25,051,380 | |
Note : 3. Reflects the non-cash compensation expense resulting from the transfer of shares from the Parent Company to the chairman and chief executive officer of the Company.
4. As restated for the effects of the Share Exchange that occurred on April 14, 2000, similar to a 2,505 to 1 stock spilt.
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TRADE MEDIA HOLDINGS LTD. AND SUBSIDIARIES
(PREDECESSOR TO GLOBAL SOURCES LTD.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)
Three months ended March 31 | |||
1999 | 2000 | ||
(Unaudited) | (Unaudited) | ||
Cash flows from operating activities: | |||
Net income/(Loss) ..................................................................... | $ 3,194 | $ (4,617) | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | |||
Depreciation and amortization................................................... | 638 | 648 | |
Loss on sale of property and equipment.................................... | - | (6) | |
Accretion of U.S. Treasury strips zero % coupon..................... | (42) | (31) | |
Bad debt expense....................................................................... | 270 | 291 | |
Expenses allocated by Parent Company.................................... | 165 | - | |
Non-cash compensation expense ?????????????????????? | - | 8,933 | |
Changes in assets and liabilities: | |||
Accounts receivables................................................................. | (144) | 249 | |
Receivables from sales representatives..................................... | (377) | (1,338) | |
Inventory of paper...................................................................... | 92 | 56 | |
Prepaid expenses and other current assets................................. | 1,323 | 700 | |
Loan to chief executive officer ................................................. | - | (5,009) | |
Long term assets......................................................................... | 68 | 9 | |
Accounts payable....................................................................... | (2,639) | (1,094) | |
Accrued liabilities and liabilities for incentive and bonus plans......................................................................................... | (477) | (1,799) | |
Deferred income and customer prepayments............................ | 344 | 34 | |
Amount due to Parent Company............................................... | (1,362) | - | |
Income taxes payable................................................................. | (33) | 119 | |
Net cash provided by (used for) operating activities...... | 1,020 | (2,855) | |
Cash flows from investing activities: | |||
Purchase of long term investments............................................ | - | (10,000) | |
Purchase of property and equipment......................................... | (520) | (1,194) | |
Proceeds from sales of property and equipment....................... | - | 6 | |
Net cash used for investing activities................................ | (520) | (11,188) | |
Cash flows from financing activities: | |||
Short-term borrowings .............................................................. | - | 13,260 | |
Advances from (to) shareholders............................................... | (2,503) | - | |
Net cash (used for) generated from financing activities. | (2,503) | 13,260 | |
Net decrease in cash and cash equivalents.................................... | (2,003) | (783) | |
Cash and cash equivalents, beginning of the year......................... | 15,713 | 15,433 | |
Cash and cash equivalents, end of the year.............................. | $ 13,710 | $ 14,650 | |
Supplemental cash flow disclosures: | |||
Income tax paid.......................................................................... | $ 312 | $ 142 | |
Interest paid................................................................................ | 84 | 30 | |
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