| At | At | |||||||
| December 31 | December 31 | |||||||
| 2007 | 2006 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
| Cash and cash equivalents | $ | 197,825 | $ | 135,093 | ||||
| Available-for-sale securities | — | 20,702 | ||||||
| Accounts receivable, net | 6,665 | 6,468 | ||||||
| Receivables from sales representatives | 12,303 | 13,238 | ||||||
| Inventory | 1,108 | 889 | ||||||
| Prepaid expenses and other current assets | 15,333 | 14,174 | ||||||
| Deferred taxes assets | 46 | — | ||||||
Total Current Assets | 233,280 | 190,564 | ||||||
| Property and equipment, net | 35,352 | 28,374 | ||||||
| Long term investments | 100 | 100 | ||||||
| Bonds held to maturity, at amortized cost | 99 | 289 | ||||||
| Deferred taxes assets — long term | 196 | — | ||||||
| Other assets | 2,781 | 1,562 | ||||||
Total Assets | $ | 271,808 | $ | 220,889 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable | $ | 5,577 | $ | 6,804 | ||||
| Deferred income and customer prepayments | 78,141 | 62,036 | ||||||
| Accrued liabilities | 12,546 | 12,427 | ||||||
| Income taxes payable | 694 | 751 | ||||||
Total Current Liabilities | 96,958 | 82,018 | ||||||
| Liabilities for incentive and bonus plans | — | 102 | ||||||
| Deferred income and customer prepayments — long term | 4,934 | 1,802 | ||||||
| Deferred tax liability | 283 | 403 | ||||||
Total Liabilities | 102,175 | 84,325 | ||||||
| Minority interest | 4,940 | 2,913 | ||||||
Shareholders’ equity: | ||||||||
| Common shares, US$0.01 par value; 75,000,000 shares authorized; 46,572,092 (2006: 46,499,492) shares issued and outstanding | 466 | 465 | ||||||
| Additional paid in capital | 133,987 | 125,790 | ||||||
| Retained earnings | 28,829 | 4,830 | ||||||
| Accumulated other comprehensive income | 1,411 | 2,566 | ||||||
Total Shareholders’ Equity | 164,693 | 133,651 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 271,808 | $ | 220,889 | ||||
| Three months ended December 31 | Year ended December 31 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
| Online and other media services (Note 1) | $ | 33,969 | $ | 30,335 | $ | 125,818 | $ | 113,097 | ||||||||
| Exhibitions | 25,455 | 21,608 | 51,608 | 42,122 | ||||||||||||
| Miscellaneous | 1,360 | 361 | 4,633 | 1,262 | ||||||||||||
| 60,784 | 52,304 | 182,059 | 156,481 | |||||||||||||
Operating Expenses: | ||||||||||||||||
| Sales (Note 2) | 20,641 | 15,451 | 61,773 | 50,380 | ||||||||||||
| Event production | 9,915 | 9,169 | 20,155 | 18,414 | ||||||||||||
| Community (Note 2) | 9,327 | 8,231 | 27,086 | 24,885 | ||||||||||||
| General and administrative (Note 2) | 12,238 | 10,605 | 44,167 | 38,945 | ||||||||||||
| Online services development (Note 2) | 1,503 | 1,145 | 5,703 | 4,499 | ||||||||||||
| Amortization of software costs and intangibles | 75 | 328 | 193 | 1,250 | ||||||||||||
Total Operating Expenses | 53,699 | 44,929 | 159,077 | 138,373 | ||||||||||||
Income from Operations | 7,085 | 7,375 | 22,982 | 18,108 | ||||||||||||
| Interest and dividend income | 1,721 | 1,797 | 6,595 | 5,571 | ||||||||||||
| Gain on sale of available-for-sale securities | 2,937 | — | 2,937 | 309 | ||||||||||||
| Gain on sale of shares to minority shareholder and interest income thereon | — | 7,906 | — | 7,906 | ||||||||||||
| Loss on investment, net | — | (743 | ) | (1,846 | ) | (743 | ) | |||||||||
| Impairment of goodwill and intangible assets (Note 3) | (3,101 | ) | — | (3,101 | ) | — | ||||||||||
| Foreign exchange gains (losses), net | (455 | ) | (258 | ) | (1,213 | ) | (714 | ) | ||||||||
Income before Income Taxes | 8,187 | 16,077 | 26,354 | 30,437 | ||||||||||||
Income Tax Expense | 318 | (323 | ) | (328 | ) | (899 | ) | |||||||||
Net Income before Minority Interest | $ | 8,505 | $ | 15,754 | $ | 26,026 | $ | 29,538 | ||||||||
| Minority interest | (357 | ) | (444 | ) | (2,027 | ) | (1,909 | ) | ||||||||
Net Income before cumulative effect of change in accounting principle | $ | 8,148 | $ | 15,310 | $ | 23,999 | $ | 27,629 | ||||||||
| Cumulative effect of change in accounting principle (Note 4) | — | — | — | $ | 251 | |||||||||||
Net Income | $ | 8,148 | $ | 15,310 | $ | 23,999 | $ | 27,880 | ||||||||
Basic net income per common share before cumulative effect of change in accounting principle | $ | 0.17 | $ | 0.33 | $ | 0.52 | $ | 0.59 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Basic net income per common share | $ | 0.17 | $ | 0.33 | $ | 0.52 | $ | 0.60 | ||||||||
Diluted net income per common share before cumulative effect of change in accounting principle | $ | 0.17 | $ | 0.33 | $ | 0.51 | $ | 0.59 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Diluted net income per common share | $ | 0.17 | $ | 0.33 | $ | 0.51 | $ | 0.60 | ||||||||
Common shares used in basic net income per common share calculations | 44,990,694 | 44,694,977 | 45,000,808 | 44,692,422 | ||||||||||||
Common shares used in diluted net income per common share calculations | 45,226,872 | 44,782,075 | 45,163,495 | 44,748,162 | ||||||||||||
Basic net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.17 | $ | 0.33 | $ | 0.52 | $ | 0.59 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Basic net income per non-vested restricted share | $ | 0.17 | $ | 0.33 | $ | 0.52 | $ | 0.60 | ||||||||
Diluted net income per non-vested restricted share before cumulative effect of change in accounting principle | $ | 0.17 | $ | 0.33 | $ | 0.51 | $ | 0.59 | ||||||||
Cumulative effect of change in accounting principle | — | — | — | $ | 0.01 | |||||||||||
Diluted net income per non-vested restricted share | $ | 0.17 | $ | 0.33 | $ | 0.51 | $ | 0.60 | ||||||||
Non-vested restricted shares used in basic net income per non-vested restricted share calculations | 1,581,398 | 1,804,515 | 1,559,748 | 1,790,150 | ||||||||||||
Non-vested restricted shares used in diluted net income per non-vested restricted share calculations | 1,942,420 | 1,804,515 | 1,823,366 | 1,790,150 | ||||||||||||
| Note : 1. | Online and other media services consists of: |
| Three months ended December 31 | Year ended December 31 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Online services | $ | 20,501 | $ | 16,927 | $ | 75,919 | $ | 64,396 | ||||||||
| Print services | 13,468 | 13,408 | 49,899 | 48,701 | ||||||||||||
| $ | 33,969 | $ | 30,335 | $ | 125,818 | $ | 113,097 | |||||||||
| Note : 2. | 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 December 31 | Year ended December 31 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Sales | $ | 2,417 | $ | 707 | $ | 4,286 | $ | 1,790 | ||||||||
| Community | 112 | 66 | 269 | 145 | ||||||||||||
| General administrative | 918 | 381 | 2,874 | 1,950 | ||||||||||||
| Online services development | 122 | 39 | 347 | 181 | ||||||||||||
| $ | 3,569 | $ | 1,193 | $ | 7,776 | $ | 4,066 | |||||||||
| Note : 3. | Represents the impairment loss recorded on goodwill and intangible assets associated with the business acquisition of Blue Bamboo China Ventures. | |
| Note : 4. | Represents the cumulative effect of change in accounting principle, resulting from the adoption of Statement of Financial Accounting Standard (“SFAS”) No. 123(R) with effect from January 1, 2006. |
| Year ended December 31 | ||||||||
| 2007 | 2006 | |||||||
Cash flows from operating activities: | ||||||||
| Net income | $ | 23,999 | $ | 27,880 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 4,710 | 4,678 | ||||||
| Accretion of U.S. Treasury strips zero % coupons | (15 | ) | (26 | ) | ||||
| Impairment of investment, goodwill and intangible assets | 5,402 | — | ||||||
| Profit on sale of equipment | (3 | ) | (30 | ) | ||||
| Provision for doubtful debts | 444 | 216 | ||||||
| Non-cash compensation expense | 7,776 | 4,066 | ||||||
| Income attributable to minority shareholder | 2,027 | 1,909 | ||||||
| Gain on sale of shares to minority shareholder and interest income thereon | — | (7,906 | ) | |||||
| Equipment written off | 266 | 2 | ||||||
| Cumulative effect of change in accounting principle | — | (251 | ) | |||||
| Exchange rate realignment | 730 | — | ||||||
| 45,336 | 30,538 | |||||||
Changes in assets and liabilities: | ||||||||
| Accounts receivables | (641 | ) | (1,139 | ) | ||||
| Receivables from sales representatives | 935 | (7,579 | ) | |||||
| Inventory | (219 | ) | (23 | ) | ||||
| Prepaid expenses and other current assets | (1,158 | ) | (3,589 | ) | ||||
| Long term assets | (1,219 | ) | 419 | |||||
| Accounts payable | (1,236 | ) | 1,320 | |||||
| Accrued liabilities and liabilities for incentive and bonus plans | 17 | 5,578 | ||||||
| Deferred income and customer prepayments | 19,237 | 10,866 | ||||||
| Tax liability | (419 | ) | 313 | |||||
Net cash provided by operating activities | 60,633 | 36,704 | ||||||
Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (11,291 | ) | (4,876 | ) | ||||
| Proceeds from sale of equipment | 3 | 30 | ||||||
| Proceeds from matured bonds | 205 | 200 | ||||||
| Purchase of intangible assets | (3,136 | ) | — | |||||
| Purchase of available-for-sale securities | — | (263,463 | ) | |||||
| Proceeds from sale of available-for-sale securities | 15,834 | 251,267 | ||||||
| Net proceeds from sale of shares to minority shareholder, interest received thereon and repurchase of share dividends from minority shareholder | — | 2,719 | ||||||
Net cash generated from (used in) investing activities | 1,615 | (14,123 | ) | |||||
Cash flows from financing activities: | ||||||||
| Amount received towards directors purchase plan | 422 | 359 | ||||||
Net cash generated from financing activities | 422 | 359 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 62 | — | ||||||
| Net increase in cash and cash equivalents | 62,670 | 22,940 | ||||||
| Cash and cash equivalents, beginning of the year | 135,093 | 112,153 | ||||||
Cash and cash equivalents, end of the year | $ | 197,825 | $ | 135,093 | ||||
Supplemental cash flow disclosures: | ||||||||
| Income tax paid | $ | 747 | $ | 586 | ||||
