| At | At | |||||||
| March 31 | December 31 | |||||||
| 2007 | 2006 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
| Cash and cash equivalents | $ | 36,454 | $ | 25,192 | ||||
| Available-for-sale securities | 120,764 | 130,603 | ||||||
| Accounts receivable, net | 6,382 | 6,468 | ||||||
| Receivables from sales representatives | 17,333 | 13,238 | ||||||
| Inventory | 1,012 | 889 | ||||||
| Prepaid expenses and other current assets | 20,113 | 14,174 | ||||||
Total Current Assets | 202,058 | 190,564 | ||||||
| Property and equipment, net | 27,890 | 28,374 | ||||||
| Long term investments | 100 | 100 | ||||||
| Bonds held to maturity, at amortized cost | 293 | 289 | ||||||
| Other assets | 2,613 | 1,562 | ||||||
Total Assets | $ | 232,954 | $ | 220,889 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable | $ | 6,550 | $ | 6,804 | ||||
| Deferred income and customer prepayments | 73,463 | 62,036 | ||||||
| Accrued liabilities | 10,167 | 12,427 | ||||||
| Income taxes payable | 929 | 751 | ||||||
Total Current Liabilities | 91,109 | 82,018 | ||||||
| Liabilities for incentive and bonus plans | 102 | 102 | ||||||
| Deferred income and customer prepayments — long term | 2,684 | 1,802 | ||||||
| Deferred tax liability | 368 | 403 | ||||||
Total Liabilities | 94,263 | 84,325 | ||||||
| Minority interest | 3,930 | 2,913 | ||||||
Shareholders’ equity: | ||||||||
| Common shares, US$0.01 par value; 75,000,000 shares authorized; 42,337,568 (2006: 42,271,568) shares issued and outstanding | 423 | 423 | ||||||
| Additional paid in capital | 126,776 | 125,832 | ||||||
| Retained earnings | 11,358 | 4,830 | ||||||
| Accumulated other comprehensive (loss) income | (3,796 | ) | 2,566 | |||||
Total Shareholders’ Equity | 134,761 | 133,651 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 232,954 | $ | 220,889 | ||||
| Three months ended March 31 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Revenue: | ||||||||
| Online and other media services (Note 3) | $ | 29,045 | $ | 26,090 | ||||
| Exhibitions | 4,816 | 3,712 | ||||||
| Miscellaneous | 1,086 | 229 | ||||||
| 34,947 | 30,031 | |||||||
Operating Expenses: | ||||||||
| Sales (Note 4) | 11,136 | 9,909 | ||||||
| Event production | 613 | 619 | ||||||
| Community (Note 4) | 5,273 | 4,674 | ||||||
| General and administrative (Note 4) | 9,953 | 9,379 | ||||||
| Online services development (Note 4) | 1,286 | 1,054 | ||||||
| Amortization of software costs | 40 | 302 | ||||||
Total Operating Expenses | 28,301 | 25,937 | ||||||
Income from Operations | 6,646 | 4,094 | ||||||
| Interest and dividend income | 1,392 | 1,030 | ||||||
| Gain on sale of available-for-sale securities | — | 73 | ||||||
| Foreign exchange gains (losses), net | (274 | ) | (27 | ) | ||||
Income before Income Taxes | 7,764 | 5,170 | ||||||
Income Tax Expense | (219 | ) | (203 | ) | ||||
Net Income before Minority Interest | $ | 7,545 | $ | 4,967 | ||||
| Minority interest | (1,017 | ) | (811 | ) | ||||
Net Income before cumulative effect of change in accounting principle | $ | 6,528 | $ | 4,156 | ||||
| Cumulative effect of change in accounting principle (Note 5) | — | 251 | ||||||
Net Income | $ | 6,528 | $ | 4,407 | ||||
Basic net income per common share before cumulative effect of change in accounting principle | $ | 0.15 | $ | 0.09 | ||||
Cumulative effect of change in accounting principle | — | $ | 0.01 | |||||
Basic net income per common share | $ | 0.15 | $ | 0.10 | ||||
Diluted net income per common share before cumulative effect of change in accounting principle | $ | 0.15 | $ | 0.09 | ||||
Cumulative effect of change in accounting principle | — | $ | 0.01 | |||||
Diluted net income per common share | $ | 0.15 | $ | 0.10 | ||||
Common shares used in basic net income per common share calculations | 40,849,806 | 40,684,745 | ||||||
Common shares used in diluted net income per common share calculations | 40,979,435 | 40,735,777 | ||||||
Basic net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.15 | $ | 0.09 | ||||
Cumulative effect of change in accounting principle | — | $ | 0.01 | |||||
Basic net income per non-vested restricted share | $ | 0.15 | $ | 0.10 | ||||
Diluted net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.15 | $ | 0.09 | ||||
Cumulative effect of change in accounting principle | — | $ | 0.01 | |||||
Diluted net income per non-vested restricted share | $ | 0.15 | $ | 0.10 | ||||
Non-vested restricted shares used in basic net income per non-vested restricted share calculations | 1,445,229 | 1,524,441 | ||||||
Non-vested restricted shares used in diluted net income per non-vested restricted share calculations | 1,455,476 | 1,524,441 | ||||||
| Note : | 3. | Online and other media services consists of: |
| Three months ended March 31 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Online services | $ | 17,270 | $ | 15,094 | ||||
| Print services | 11,775 | 10,996 | ||||||
| $ | 29,045 | $ | 26,090 | |||||
| Note : | 4. | Non-cash compensation expenses associated with the several employee equity compensation plans and Directors Purchase Plan included under various categories of expenses are as follows:. |
| Three months ended March 31 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Sales | $ | (133 | ) | $ | 197 | |||
| Community | 85 | 32 | ||||||
| General administrative | 509 | 529 | ||||||
| Online services development | 62 | 59 | ||||||
| $ | 523 | $ | 817 | |||||
| Note : | 5. | Represents the cumulative effect of change in accounting principle, resulting from the adoption of SFAS No. 123(R) with effect from January 1, 2006. |
| Three months ended March 31 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
| Net income | $ | 6,528 | $ | 4,407 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 1,072 | 1,071 | ||||||
| Accretion of U.S. Treasury strips zero % coupons | (4 | ) | (7 | ) | ||||
| Unrealised dividend income on available-for-sale securities | — | (253 | ) | |||||
| Unrealised interest income on available-for-sale securities | (750 | ) | (8 | ) | ||||
| Bad debt expense | 100 | 43 | ||||||
| Non-cash compensation expense | 523 | 817 | ||||||
| Income attributable to minority shareholder | 1,017 | 811 | ||||||
| Equipment written off | 4 | — | ||||||
| Cumulative effect of change in accounting principle | — | (251 | ) | |||||
| 8,490 | 6,630 | |||||||
Changes in assets and liabilities: | ||||||||
| Accounts receivables | (14 | ) | 579 | |||||
| Receivables from sales representatives | (4,095 | ) | (4,550 | ) | ||||
| Inventory | (123 | ) | (42 | ) | ||||
| Prepaid expenses and other current assets | (5,939 | ) | (6,029 | ) | ||||
| Long term assets | (1,051 | ) | (254 | ) | ||||
| Accounts payable | (254 | ) | 264 | |||||
| Accrued liabilities and liabilities for incentive and bonus plans | (2,260 | ) | 2,366 | |||||
| Deferred income and customer prepayments | 12,309 | 9,026 | ||||||
| Tax liability | 143 | 83 | ||||||
Net cash provided by operating activities | 7,206 | 8,073 | ||||||
Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (592 | ) | (660 | ) | ||||
| Purchase of available-for-sale securities | (105,682 | ) | (104,674 | ) | ||||
Proceeds fromsale of available-for-sale securities | 109,908 | 98,728 | ||||||
Net cash generated from (used in) investing activities | 3,634 | (6,606 | ) | |||||
Cash flows from financing activities: | ||||||||
| Amount received towards directors purchase plan | 422 | 359 | ||||||
Net cash generated from financing activities | 422 | 359 | ||||||
| Net increase in cash and cash equivalents | 11,262 | 1,826 | ||||||
| Cash and cash equivalents, beginning of the period | 25,192 | 94,321 | ||||||
Cash and cash equivalents, end of the period | $ | 36,454 | $ | 96,147 | ||||
Supplemental cash flow disclosures: | ||||||||
| Income tax paid | $ | 76 | $ | 120 | ||||
