| At | At | |||||||
| June 30 | December 31 | |||||||
| 2007 | 2006 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
| Cash and cash equivalents | $ | 32,148 | $ | 25,192 | ||||
| Available-for-sale securities | 141,367 | 130,603 | ||||||
| Accounts receivable, net. | 5,547 | 6,468 | ||||||
| Receivables from sales representatives | 9,906 | 13,238 | ||||||
| Inventory | 1,165 | 889 | ||||||
| Prepaid expenses and other current assets | 13,728 | 14,174 | ||||||
Total Current Assets | 203,861 | 190,564 | ||||||
| Property and equipment, net | 34,851 | 28,374 | ||||||
| Long term investments | 100 | 100 | ||||||
| Bonds held to maturity, at amortized cost | 297 | 289 | ||||||
| Other assets. | 3,250 | 1,562 | ||||||
Total Assets | $ | 242,359 | $ | 220,889 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable | $ | 6,166 | $ | 6,804 | ||||
| Deferred income and customer prepayments | 68,394 | 62,036 | ||||||
| Accrued liabilities | 11,579 | 12,427 | ||||||
| Income taxes payable | 1,135 | 751 | ||||||
Total Current Liabilities | 87,274 | 82,018 | ||||||
| Liabilities for incentive and bonus plans | 102 | 102 | ||||||
| Deferred income and customer prepayments — long term | 4,495 | 1,802 | ||||||
| Deferred tax liability | 295 | 403 | ||||||
Total Liabilities | 92,166 | 84,325 | ||||||
| Minority interest | 4,238 | 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 | 129,545 | 125,832 | ||||||
| Retained earnings | 15,548 | 4,830 | ||||||
| Accumulated other comprehensive income | 439 | 2,566 | ||||||
Total Shareholders’ Equity | 145,955 | 133,651 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 242,359 | $ | 220,889 | ||||
| Three months ended June 30 | Six months ended June 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenue: | ||||||||||||||||
| Online and other media services (Note 3) | $ | 30,534 | $ | 28,078 | $ | 59,579 | $ | 54,168 | ||||||||
| Exhibitions | 20,883 | 16,367 | 25,699 | 20,079 | ||||||||||||
| Miscellaneous | 1,128 | 381 | 2,214 | 610 | ||||||||||||
| 52,545 | 44,826 | 87,492 | 74,857 | |||||||||||||
Operating Expenses: | ||||||||||||||||
| Sales (Note 4) | 17,666 | 14,345 | 28,802 | 24,254 | ||||||||||||
| Event production | 9,464 | 8,497 | 10,077 | 9,116 | ||||||||||||
| Community (Note 4) | 7,435 | 7,557 | 12,708 | 12,231 | ||||||||||||
| General and administrative (Note 4) | 11,492 | 9,828 | 21,445 | 19,207 | ||||||||||||
| Online services development (Note 4) | 1,300 | 1,068 | 2,586 | 2,122 | ||||||||||||
| Amortization of software costs | 40 | 305 | 80 | 607 | ||||||||||||
Total Operating Expenses | 47,397 | 41,600 | 75,698 | 67,537 | ||||||||||||
Income from Operations | 5,148 | 3,226 | 11,794 | 7,320 | ||||||||||||
| Interest and dividend income | 1,724 | 1,318 | 3,116 | 2,348 | ||||||||||||
| Gain on sale of available-for-sale securities | — | 227 | — | 300 | ||||||||||||
| Loss on investment, net | (1,846 | ) | — | (1,846 | ) | — | ||||||||||
| Foreign exchange gains (losses), net | (190 | ) | (201 | ) | (464 | ) | (228 | ) | ||||||||
Income before Income Taxes | 4,836 | 4,570 | 12,600 | 9,740 | ||||||||||||
Income Tax Expense | (338 | ) | (220 | ) | (557 | ) | (423 | ) | ||||||||
Net Income before Minority Interest | $ | 4,498 | $ | 4,350 | $ | 12,043 | $ | 9,317 | ||||||||
| Minority interest | (308 | ) | (322 | ) | (1,325 | ) | (1,133 | ) | ||||||||
Net Income before cumulative effect of change in accounting principle | $ | 4,190 | $ | 4,028 | $ | 10,718 | $ | 8,184 | ||||||||
| Cumulative effect of change in accounting principle (Note 5) | — | — | — | 251 | ||||||||||||
Net Income | $ | 4,190 | $ | 4,028 | $ | 10,718 | $ | 8,435 | ||||||||
Basic net income per common share before cumulative effect of change in accounting principle | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.19 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Basic net income per common share | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.20 | ||||||||
Diluted net income per common share before cumulative effect of change in accounting principle | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.19 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Diluted net income per common share | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.20 | ||||||||
Common shares used in basic net income per common share calculations | 40,910,098 | 40,584,489 | 40,895,408 | 40,634,340 | ||||||||||||
Common shares used in diluted net income per common share calculations | 41,077,838 | 40,653,587 | 41,044,111 | 40,694,405 | ||||||||||||
Basic net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.19 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Basic net income per non-vested restricted share | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.20 | ||||||||
Diluted net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.19 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Diluted net income per non-vested restricted share | $ | 0.10 | $ | 0.10 | $ | 0.25 | $ | 0.20 | ||||||||
Non-vested restricted shares used in basic net income per non-vested restricted share calculations | 1,427,470 | 1,687,079 | 1,421,011 | 1,606,209 | ||||||||||||
Non-vested restricted shares used in diluted net income per non-vested restricted share calculations | 1,750,775 | 1,687,079 | 1,587,788 | 1,606,209 | ||||||||||||
| Note: 3. | Online and other media services consists of: |
| Three months ended June 30 | Six months ended June 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Online services | $ | 18,492 | $ | 15,685 | $ | 35,762 | $ | 30,779 | ||||||||
| Print services | 12,042 | 12,393 | 23,817 | 23,389 | ||||||||||||
| $ | 30,534 | $ | 28,078 | $ | 59,579 | $ | 54,168 | |||||||||
| 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 June 30 | Six months ended June 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Sales | $ | 1,519 | $ | 186 | $ | 1,386 | $ | 383 | ||||||||
| Community | 17 | 21 | 102 | 53 | ||||||||||||
| General administrative | 1,135 | 292 | 1,645 | 821 | ||||||||||||
| Online services development | 98 | 39 | 160 | 98 | ||||||||||||
| $ | 2,769 | $ | 538 | $ | 3,293 | $ | 1,355 | |||||||||
| 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. |
| Six months ended June 30 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
| Net income | $ | 10,718 | $ | 8,435 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 2,154 | 2,191 | ||||||
| Accretion of U.S. Treasury strips zero % coupons | (8 | ) | (14 | ) | ||||
| Unrealised dividend income on available-for-sale securities | — | (280 | ) | |||||
| Unrealised interest income on available-for-sale securities | (829 | ) | (36 | ) | ||||
| Impairment of investment | 2,301 | — | ||||||
| Profit on sale of equipment | — | (32 | ) | |||||
| Bad debt expense | 100 | 130 | ||||||
| Non-cash compensation expense | 3,293 | 1,355 | ||||||
| Income attributable to minority shareholder | 1,325 | 1,133 | ||||||
| Equipment written off | 4 | 1 | ||||||
| Cumulative effect of change in accounting principle | — | (251 | ) | |||||
| 19,058 | 12,632 | |||||||
Changes in assets and liabilities: | ||||||||
| Accounts receivables | 821 | (451 | ) | |||||
| Receivables from sales representatives | 3,332 | (2,988 | ) | |||||
| Inventory | (276 | ) | (155 | ) | ||||
| Prepaid expenses and other current assets | 445 | (1,444 | ) | |||||
| Long term assets | (1,688 | ) | (657 | ) | ||||
| Accounts payable | (638 | ) | 1,972 | |||||
| Accrued liabilities and liabilities for incentive and bonus plans | (848 | ) | 3,538 | |||||
| Deferred income and customer prepayments | 9,051 | 6,194 | ||||||
| Tax liability | 276 | 197 | ||||||
Net cash provided by operating activities | 29,533 | 18,838 | ||||||
Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (8,636 | ) | (1,789 | ) | ||||
| Proceeds from sale of equipment | — | 32 | ||||||
| Purchase of available-for-sale securities | (229,953 | ) | (225,766 | ) | ||||
Proceeds fromsale of available-for-sale securities | 215,590 | 210,558 | ||||||
Net cash used in investing activities | (22,999 | ) | (16,965 | ) | ||||
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 | 6,956 | 2,232 | ||||||
| Cash and cash equivalents, beginning of the period | 25,192 | 94,321 | ||||||
Cash and cash equivalents, end of the period | $ | 32,148 | $ | 96,553 | ||||
Supplemental cash flow disclosures: | ||||||||
| Income tax paid | $ | 281 | $ | 226 | ||||
