Exhibit 99.1
Bona Reports Fourth Quarter and Full Year 2013 Financial Results
BEIJING — February 27, 2014 — Bona Film Group Limited (NASDAQ: BONA) (“Bona” or the “Company”), a leading film distributor and vertically integrated film company in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2013.
“We delivered solid results in 2013, driven by the theatrical release of 14 films domestically that generated an approximately 10% market share in domestic box office receipts, making us one of the top three domestic non-state-owned film distributors,” said Bona founder, Chairman and CEO Mr. Yu Dong. “We are also pleased with the progress we made in our theater segment in 2013, as our greenfield theaters matured and delivered solid results. We opened 2 new movie theaters in 2013, signed contracts to construct 7 new theater projects and reached a few preliminary agreements with first-tier property developers on exciting future projects.”
“2013 also marked a time when we significantly strengthened our corporate structure through the successful launch of the RMB 1 billion Bona Film Investment Fund and the strategic investment in our Company by Fosun Group. These initiatives will help fortify our position in the market and create opportunities for us to leverage in the future.”
Fourth Quarter 2013 Financial Summary
· Fourth quarter 2013 net revenues were US$42.8 million, compared with US$53.2 million in the fourth quarter of 2012.
· Fourth quarter 2013 gross profit was US$16.9 million, compared with US$10.1 million in the fourth quarter of 2012.
· Fourth quarter 2013 gross margin was 39.5%, compared with 19.0% in the fourth quarter of 2012.
· Fourth quarter 2013 net income attributable to Bona Film Group Limited was US$0.4 million, or US$0.01 per basic and diluted ADS1, compared with a net loss attributable to Bona Film Group Limited of US$(5.4) million, or a loss of US$(0.09) per basic and diluted ADS, in the fourth quarter of 2012.
· Fourth quarter 2013 non-GAAP net income2 was US$1.5 million, compared to a non-GAAP net loss of US$(4.2) million in the fourth quarter of 2012.
· Fourth quarter 2013 adjusted EBITDA, non-GAAP2, was US$7.0 million, compared with an adjusted EBITDA loss, non-GAAP, of US$(2.4) million in the fourth quarter of 2012.
· Cash and cash equivalents, term deposits and restricted cash totaled US$63.4 million as of December 31, 2013.
· Fourth quarter 2013 cash generated from operating activities totaled US$9.5 million, compared with cash used in operating activities of US$3.6 million in the fourth quarter of 2012.
1 “ADS” is American depositary share. Each two ADSs represent one ordinary share.
2 As used in this press release, non-GAAP net income and non-GAAP net income attributable to Bona Film Group Limited per ADS exclude share-based compensation expenses. Adjusted EBITDA, non-GAAP, excludes share-based compensation expenses, interest, taxes and non-cash depreciation and amortization charges. See “Non- GAAP Financial Measures” and “Reconciliation of Non-GAAP Measures” at the end of this press release.
Full Year 2013 Financial Summary
· Full year 2013 net revenues were US$149.3 million, compared with US$142.3 million for the full year 2012.
· Full year 2013 gross profit was US$66.5 million, compared with US$56.2 million for the full year 2012.
· Full year 2013 gross margin was 44.5%, compared with 39.5% for the full year 2012.
· Full year 2013 net income attributable to Bona Film Group Limited was US$5.7 million, or US$0.09 per basic and diluted ADS, compared with a net loss attributable to Bona Film Group Limited of US$(1.3) million, or a loss of US$(0.02) per basic and diluted ADS, for the full year 2012.
· Full year 2013 non-GAAP net income was US$8.5 million, compared with non-GAAP net income of US$3.2 million for the full year 2012.
· Full year 2013 adjusted EBITDA, non-GAAP, was US$20.4 million, compared with US$9.1 million for the full year 2012.
· Full year 2013 cash used in operating activities totaled US$21.6 million, compared with cash used in operating activities of US$9.5 million for the full year 2012.
Full Year 2013 Business Updates and Recent Highlights
· Distributed and/or invested in a total of 18 films in 2013, 14 of which were for domestic theatrical distribution and generated a total of RMB 1.3 billion in box office receipts. For the year, Bona’s films accounted for approximately 10% of total domestic box office receipts.
· Distributed three new films theatrically in 4Q 2013 — The White Storm, Red 2 and The Game of Hide and Seek; as well as Out of Inferno which was released on September 30th:
· Released The White Storm, formerly known as The Cartel War, on November 29, 2013. A crime thriller starring three of Hong Kong’s most popular film stars — Sean Lau, Louis Koo and Nick Cheung, the film has been widely praised for its high production quality. The White Storm opened the Hong Kong Asian Film Festival and generated more than RMB 225.3 million in box office receipts in 2013.
· Released Hollywood comedic action drama Red 2, starring Bruce Willis, Helen Mirren, John Malkovich and Anthony Hopkins, on November 15, 2013.
· Released the low-budget horror/thriller The Game of Hide and Seek on October 11, 2013.
· Recognized for artistic value: three Bona-invested films were included in the recently announced list of nominees for the 2014 Hong Kong Film Awards — The Grandmaster, Unbeatable and The White Storm, which received 14, 11 and 8 nominations, respectively. Also in 2013, Bona distributed films received 6 awards at the 15th China Huabiao Awards and top acting awards at the 16th Annual Shanghai International Film Festival.
· Launched the Bona Film Investment Fund (the “Film Fund”), an RMB 1 billion (approximately US$165.2 million) investment vehicle funded through a partnership with Sequoia Capital Management Ltd. and Noah Holdings Ltd. The Film Fund considerably enhances Bona’s ability to finance the development and production of its films and TV projects over the next two-three years.
· Expanded the ownership structure of the Company with an investment by Fosun Group, which acquired 2,000,000 Bona ordinary shares, representing a 6.4% equity stake. Bona and Fosun are working together to leverage each other’s resources.
· Opened two new theaters in Shandong Zibo and Shenzhen Huangting in 2013, and signed contracts for seven additional locations, most of which are expected to open by the end of 2014. Bona owned and operated 22 theaters, representing 182 screens as of December 31, 2013, compared with 20 theaters, representing 163 screens as of December 31, 2012.
· Distributed two films to date in 1Q 2014 — The Mortal Instruments: City of Bones and The Man From Macau. The Film Fund made its first investment in The Man From Macau, and the film has already generated roughly RMB 500 million in domestic box office receipts.
· Major films undergoing post-production in 1Q 2014 include Horseplay, The White Haired Witch, Overheard 3, Insanity, Sunspot and I Am Somebody.
· Major films undergoing production in 1Q 2014 include The Taking of Tiger Mountain (formerly referred to as Tracks in the Snowy Forest) and Daydream Believer.
· Bona is also pursuing the quota application process for two foreign films — Nonstop and Pompeii.
Fourth Quarter 2013 Financial Results
Net Revenues
|
| 4Q13 |
| 4Q12 |
| Y-o-Y% |
|
Net Revenues (US$mm) |
| 42.8 |
| 53.2 |
| (19.7 | )% |
Net revenues for the fourth quarter of 2013 were US$42.8 million, 19.7% lower than the fourth quarter of 2012. Despite strong box office performance by Bona’s films Out of Inferno and The White Storm, net revenues were lower year-on-year because the Company did not release any TV series in the fourth quarter of 2013, compared with sales generated from the Bona TV series, The King’s Battle, in the fourth quarter of 2012.
Net Revenues by Segment Operations
|
| Film |
| Investment |
| Movie |
| Talent |
| Intersegment |
| Consolidated |
|
Net Revenues from External Customers (US$mm) |
| 26.9 |
| 0.3 |
| 15.4 |
| 0.2 |
| — |
| 42.8 |
|
Intersegment Revenues (US$mm) |
| 0.8 |
| 3.0 |
| — |
| — |
| (3.8 | ) | — |
|
Total Net Revenues (US$mm) |
| 27.7 |
| 3.3 |
| 15.4 |
| 0.2 |
| (3.8 | ) | 42.8 |
|
Net revenues from distribution totaled US$27.7 million. During the fourth quarter of 2013, Bona distributed three new films theatrically — Red 2, The White Storm and The Game of Hide and Seek, as well as Out of Inferno, which was released on September 30, 2013.
Net revenues from film investment and production were US$3.3 million, which were mainly derived from the sale of continuous broadcasting rights for several Bona films that were released in the third quarter of 2013 to networks and TV stations.
Net revenues from the movie theater segment totaled US$15.4 million. The Company owned and operated 22 theaters as of December 31, 2013, compared with 20 as of December 31, 2012.
Gross Profit and Gross Margin
|
| 4Q13 |
| 4Q12 |
| Y-o-Y% |
|
Gross Profit (US$mm) |
| 16.9 |
| 10.1 |
| 67.2 | % |
Gross Margin |
| 39.5 | % | 19.0 | % | — |
|
For the fourth quarter of 2013, gross profit increased to US$16.9 million from US$10.1 million in the fourth quarter of 2012. The year-over-year increase in gross profit was primarily attributable to the strong box office performance of Out of Inferno and The White Storm, compared with lower gross margin in the fourth quarter of 2012 that resulted from the higher acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and the higher impairment of production costs using a discounted cash flow approach, and lower-than-expected box office performance from The Last Tycoon.
Segment Profit3 and Segment Margin
|
| Film |
| Investment |
| Movie |
| Talent |
| Consolidated |
|
Segment Profit (US$mm) |
| 8.9 |
| (0.4 | ) | 9.0 |
| 0.2 |
| 17.7 |
|
As % of Total Segment Profit |
| 50.3 | % | (2.1 | )% | 51.0 | % | 0.8 | % | 100.0 | % |
Segment Margin |
| 32.0 | % | (10.8 | )% | 58.5 | % | 100 | % | 41.3 | % |
Segment margin for the film distribution segment decreased to 32.0% in the fourth quarter of 2013 from 43.4% in the fourth quarter of 2012, primarily due to a lower percentage of print and advertising expenses to be withdrawn from film distribution revenue generated from Bona distributed films, in particular Out of Inferno and The White Storm, in the fourth quarter of 2013.
Segment margin from the Company’s investment and production business decreased to (10.8)% in the fourth quarter of 2013, compared with segment margin of (2.0)% in the fourth quarter of 2012. The decrease in segment margin in this business was a result of the acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and impairment of production costs using a discounted cash flow approach, and the absence of revenue generated from the investment in TV series in the fourth quarter of 2013, compared with the successful sale of the Bona TV series The King’s Battle in the fourth quarter of 2012.
Segment margin from the Company’s movie theater business was 58.5% in the fourth quarter of 2013, compared with 56.7% in the fourth quarter of 2012, which is in-line with Bona’s expanded theater operations.
3 Segment profit is gross profit less film participation expense by segments for the periods indicated.
Operating Income and Operating Margin
|
| 4Q13 |
| 4Q12 |
| Y-o-Y% |
|
Operating Expenses (US$mm) |
| 16.9 |
| 18.8 |
| (10.3 | )% |
Operating Income (Loss) (US$mm) |
| 3.3 |
| (5.7 | ) | 158.6 | % |
Operating Margin |
| 7.8 | % | (10.7 | )% | — |
|
Total operating expenses, including participation expenses, general and administrative expenses, and selling and marketing expenses, decreased 10.3% to US$16.9 million from US$18.8 million in the fourth quarter of 2012. The year-over-year decrease in operating expenses was primarily due to a decrease in selling and marketing expenses of print and advertising costs associated with the four films theatrically distributed in the fourth quarter of 2013, compared with three films and one TV series released in the fourth quarter of 2012.
Fourth quarter 2013 operating margin was 7.8% compared to (10.7)% in the fourth quarter of 2012. The year-over-year improvement in operating margin was primarily due to the strong performance of Out of Inferno and The White Storm, compared with lower-than-expected box office performance of The Last Tycoon in the fourth quarter of 2012.
Net Income and Net Income Attributable to Bona Film Group Limited per ADS
|
| 4Q13 |
| 4Q12 |
|
Net Income (Loss) Attributable to Bona Film Group Limited (US$mm) |
| 0.4 |
| (5.4 | ) |
Net Income (Loss) Attributable to Bona Film Group Limited per basic and diluted ADS (US$) |
| 0.01 |
| (0.09 | ) |
|
|
|
|
|
|
|
| 4Q13 |
| 4Q12 |
|
Non-GAAP Net Income (Loss) (US$mm) |
| 1.5 |
| (4.2 | ) |
Non-GAAP Net Income (Loss) Attributable to Bona Film Group Limited per basic and diluted ADS (US$) |
| 0.03 |
| (0.07 | ) |
Excluding share-based compensation expense of US$1.2 million and US$1.4 million for the fourth quarters of 2013 and 2012, respectively, non-GAAP net income for the fourth quarter of 2013 was US$1.5 million, compared with a non-GAAP net loss of US$(4.2) million in the fourth quarter of 2012.
|
| 4Q13 |
| 4Q12 |
|
Adjusted EBITDA, non-GAAP (US$mm) |
| 7.0 |
| (2.4 | ) |
Adjusted EBITDA, non-GAAP, in the fourth quarter of 2013 was US$7.0 million, compared with an adjusted EBITDA, non-GAAP, of US$(2.4) million in the fourth quarter of 2012.
Full Year 2013 Financial Results
Net Revenues
|
| FY13 |
| FY12 |
| Y-o-Y% |
|
Net Revenues (US$mm) |
| 149.3 |
| 142.3 |
| 5.0 | % |
Net revenues for the full year 2013 increased 5.0% year-over-year to US$149.3 million. The increase in net revenues was primarily attributable to an increase in revenues from the Company’s movie theater segment and better box office performance by the 14 films theatrically released in 2013, compared with 2012.
Net Revenues by Segment Operations
|
| Film |
| Investment |
| Movie |
| Talent |
| Intersegment |
| Consolidated |
|
Net Revenues from External Customers (US$mm) |
| 74.6 |
| 12.6 |
| 61.5 |
| 0.6 |
| — |
| 149.3 |
|
Intersegment Revenues (US$mm) |
| 2.0 |
| 28.4 |
| — |
| — |
| (30.4 | ) | — |
|
Total Net Revenues (US$mm) |
| 76.6 |
| 41.0 |
| 61.5 |
| 0.6 |
| (30.4 | ) | 149.3 |
|
Net revenues from distribution totaled US$76.6 million in 2013, compared with US$64.1 million in 2012. During 2013, Bona distributed 18 new films domestically. The increase in net revenues from the distribution segment was mainly due to the strong box office performance of the films released in 2013, in particular Unbeatable, My Lucky Star, Out of Inferno, The White Storm, among others.
Net revenues from film investment and production were US$41.0 million in 2013, compared with US$73.7 million in 2012. The decrease was mainly due to the absence of revenue generated from investing in TV series in 2013, compared with the successful sale of the Bona TV series The King’s Battle in 2012.
Net revenues from the movie theater segment increased to US$61.5 million in 2013, compared with US$41.7 million in 2012. The increase was primarily a result of the increase in the number of theaters and screens from Bona’s strategic expansion efforts.
Top-five Films in Terms of Revenue Contribution
Film Title |
| Release Date |
| Box Office |
1. The White Storm |
| November 29, 2013 |
| 225.3 |
2. Bring Happiness Home |
| January 15, 2013 |
| 153.7 |
3. My Lucky Star |
| September 17, 2013 |
| 134.8 |
4. Out of Inferno |
| September 30, 2013 |
| 131.4 |
5. Unbeatable |
| August 16, 2013 |
| 118.0 |
The top-five films in 2013 contributed US$54.1 million, which includes all revenue streams from Bona’s theatrical and non-theatrical releases, or 36.3% of full-year 2013 revenues, compared to the top-five films in 2012, which accounted for 37.4% of full-year revenues.
Gross Profit and Gross Margin
|
| FY13 |
| FY12 |
| Y-o-Y% |
|
Gross Profit (US$mm) |
| 66.5 |
| 56.2 |
| 18.3 | % |
Gross Margin |
| 44.5 | % | 39.5 | % | — |
|
For the full year 2013, gross profit increased to US$66.5 million from US$56.2 million for the full year 2012. The year-over-year increase in gross profit was primarily attributable to strong performance from Bona’s films released in 2013 and the expansion of Bona-owned movie theaters.
Segment Profit and Segment Margin
|
| Film |
| Investment |
| Movie |
| Talent |
| Consolidated |
|
Segment Profit (US$mm) |
| 23.1 |
| 8.6 |
| 35.5 |
| 0.6 |
| 67.8 |
|
As % of Total Segment Profit |
| 34.0 | % | 12.7 | % | 52.4 | % | 0.9 | % | 100.0 | % |
Segment Margin |
| 30.1 | % | 21.1 | % | 57.7 | % | 100.0 | % | 45.4 | % |
Segment margin for the distribution segment decreased to 30.1% in the full year 2013 from 39.2% for the full year 2012, primarily due to a lower percentage of print and advertising expenses to be withdrawn from film distribution revenue generated from Bona distributed films in 2013.
Segment margin from the Company’s investment and production business improved to 21.1% for the full year 2013, compared with a segment margin of 8.7% for the full year 2012. The improvement in segment margin for this business was mainly due to the higher acceleration of the amortization of production costs based on the economic performance and public acceptance of certain films and the higher impairment of production costs using a discounted cash flow approach, and lower-than-expected box office performance from The Last Tycoon in 2012.
Segment margin from the Company’s movie theater business increased to 57.7% for the full year 2013, compared with 56.6% for the full year 2012, which is in-line with Bona’s expanded theater operations.
Operating Income and Operating Margin
|
| FY13 |
| FY12 |
| Y-o-Y% |
|
Operating Expenses (US$mm) |
| 62.9 |
| 60.8 |
| 3.4 | % |
Operating Income (Loss) (US$mm) |
| 8.6 |
| (0.8 | ) | 1,241.0 | % |
Operating Margin |
| 5.8 | % | (0.5 | )% | — |
|
Total operating expenses, including participation expenses, general and administrative expenses, and selling and marketing expenses, increased 3.4% to US$62.9 million from US$60.8 million for the full year 2012. The year-over-year increase in operating expenses was primarily due to an increase in general and administrative expenses relating to expanding Bona’s movie theater segment, partially offset by a decrease in selling and marketing expenses to promote Bona’s distributed films.
Full year 2013 operating margin was 5.8% compared to (0.5)% for the full year 2012. The year-over-year improvement in operating margin was primarily due to the strong performance of the films released in the second half of 2013 and the greenfield theaters gradually maturing in 2013.
Net Income and Net Income Attributable to Bona Film Group Limited per ADS
|
| FY13 |
| FY12 |
|
Net Income (Loss) Attributable to Bona Film Group Limited (US$mm) |
| 5.7 |
| (1.3 | ) |
Net Income (Loss) Attributable to Bona Film Group Limited per basic and diluted ADS (US$) |
| 0.09 |
| (0.02 | ) |
|
| FY13 |
| FY12 |
|
Non-GAAP Net Income (US$mm) |
| 8.5 |
| 3.2 |
|
Non-GAAP Net Income Attributable to Bona Film Group Limited per basic and diluted ADS (US$) |
| 0.16 |
| 0.06 |
|
Excluding share-based compensation expense of US$4.0 million and US$4.8 million for the full year 2013 and 2012, respectively, non-GAAP net income for the full year 2013 was US$8.5 million, compared with non-GAAP net income of US$3.2 million for the full year 2012.
|
| FY13 |
| FY12 |
|
Adjusted EBITDA, non-GAAP (US$mm) |
| 20.4 |
| 9.1 |
|
Adjusted EBITDA, non-GAAP was US$20.4 million for the full year 2013, compared with adjusted EBITDA, non-GAAP of US$9.1 million for the full year 2012.
Cash and Cash Flow
As of December 31, 2013, Bona had cash, cash equivalents and restricted cash totaling US$63.4 million, compared with US$28.0 million as of December 31, 2012. Net cash used in operating activities for 2013 was approximately US$21.6 million, compared with net cash used in operating activities of US$9.5 million for 2012. The change in cash flow from operations was mainly attributable to the investment in several films released in 2013 or scheduled for release in 2014.
Business Outlook
Based on current market and operating conditions, the Company expects non-GAAP net income for the first quarter of 2014 to be in the range of US$1.0 million to US$1.5 million.
“We have a robust slate of films scheduled for release in 2014, and our business segments are on track to demonstrate progressive growth throughout the year. Our first two film releases, The Mortal Instruments: City of Bones and The Man From Macau, have kicked-off the year in top form, generating strong box office results, particularly during the Chinese New Year season. We expect the Chinese film industry to generate strong box office returns again in 2014, and believe that Bona’s solid slate of films and vertically integrated business model make us well positioned to capitalize on this growth in the market,” concluded Mr. Yu.
Fourth Quarter and Full Year 2013 Conference Call Details
Bona management will hold the earnings conference call at 8:00 p.m. Eastern Time on Thursday, February 27, 2014 (9:00 a.m. Beijing/Hong Kong Time on Friday, February 28, 2014). Management will discuss results and highlights of the quarter and answer questions from investors.
The dial-in numbers for the earnings conference call are as follows:
U.S. Toll Free: +1-855-500-8701
Hong Kong Toll Free: 800-903-737
China, Domestic: 400-120-0654
International: +65-6723-9385
The conference ID # is 50072564.
A live and archived webcast of the earnings conference call will be available on the IR Calendar page of the Bona investor relations website at http://ir.bonafilm.cn/events.cfm.
About Bona Film Group Limited
Bona Film Group Limited (NASDAQ:BONA) is a leading film distributor in China, with an integrated business model encompassing film distribution, film production, film exhibition and talent representation. Bona distributes films to Greater China, Korea, Southeast Asia, the United States and Europe, invests and produces movies in a variety of genres, owns and operates twenty-two movie theaters and manages a range of talented and popular Chinese artists.
For more information about Bona, please visit http://www.bonafilm.cn.
To be added to Bona’s email list to receive Company news, please send your request to bona@tpg-ir.com.
The Bona Film Group Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15750
Forward Looking Statements
This news release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Non-GAAP Financial Measures
To supplement Bona’s consolidated financial results presented in accordance with GAAP, Bona uses the following measures defined as non-GAAP financial measures by the SEC: non-GAAP net income, non-GAAP net income attributable to Bona Film Group Limited per ADS, which exclude share-based compensation expenses, and adjusted EBITDA, non-GAAP, which excludes share-based compensation expenses, interest, taxes, and non-cash depreciation and amortization charges. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, as a substitute for, or to be superior to the financial information prepared and presented in accordance with GAAP. In addition, Bona’s definition of non-GAAP net income may be different from the definitions used by other companies, and therefore comparability may be limited.
Bona believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain expenses and expenditures that may not be indicative of its operating performance and a supplemental liquidity measure which is useful for understanding and evaluating the Company’s capacity for servicing its debt, and otherwise meeting its cash needs. Adjusted EBITDA, non-GAAP, excludes depreciation and amortization, so it does not reflect any cash requirements for the replacement of the assets, which will often have to be replaced in the future. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and liquidity, and when planning and forecasting future periods. The table appears at the end of this press release has more details on the reconciliations between GAAP financial measures that are comparable to non-GAAP financial measures.
Contact Us
In China: |
| In the U.S.: |
Lingzi Gui |
| The Piacente Group, Inc. |
Bona Film Group Limited |
| Investor Relations |
Tel: +86-10-5631-0700-398 |
| Kathy Price |
Email: ir@bonafilm.cn |
| Tel: (212) 481-2050 |
|
| Email: bona@tpg-ir.com |
BONA FILM GROUP LIMITED
Unaudited Condensed Consolidated Statement of Operations
(in U.S. dollars, except share data)
|
| Three-months ended December 31 |
| Twelve-months ended December 31 |
| ||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
| 42,762,288 |
| 53,226,173 |
| 149,335,580 |
| 142,282,919 |
|
Cost of revenue |
| 25,884,572 |
| 43,130,900 |
| 82,839,980 |
| 86,085,046 |
|
Gross profit |
| 16,877,716 |
| 10,095,273 |
| 66,495,600 |
| 56,197,873 |
|
|
|
|
|
|
|
|
|
|
|
Film participation (income) expenses |
| (781,588 | ) | (436,890 | ) | (1,319,749 | ) | 438,636 |
|
Sales and marketing expenses |
| 4,142,294 |
| 6,174,117 |
| 14,374,421 |
| 18,490,433 |
|
General and administrative expenses |
| 13,530,453 |
| 13,083,391 |
| 49,853,700 |
| 41,890,064 |
|
Total operating expenses |
| 16,891,159 |
| 18,820,618 |
| 62,908,372 |
| 60,819,133 |
|
|
|
|
|
|
|
|
|
|
|
Government subsidies |
| 3,360,670 |
| 3,011,685 |
| 5,022,424 |
| 3,866,700 |
|
Operating income (loss) |
| 3,347,227 |
| (5,713,660 | ) | 8,609,652 |
| (754,560 | ) |
|
|
|
|
|
|
|
|
|
|
Interest income |
| 184,211 |
| (10,016 | ) | 282,221 |
| 246,423 |
|
Interest expenses |
| (48,517 | ) | (178,231 | ) | (1,382,683 | ) | (399,319 | ) |
Exchange gain (loss) |
| 796,203 |
| 635,081 |
| 1,779,231 |
| 373,265 |
|
Other income |
| 71,429 |
| 71,429 |
| 285,716 |
| 288,157 |
|
Loss on disposal of an equity method investment |
| — |
| — |
| — |
| (5,584 | ) |
Income (loss) before income tax provision and equity in earnings of equity method investments, net of tax |
| 4,350,553 |
| (5,195,397 | ) | 9,574,137 |
| (251,618 | ) |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
| 4,085,308 |
| 333,611 |
| 5,130,025 |
| 1,322,368 |
|
Equity in earnings of equity method investments, net of tax |
| 91,183 |
| — |
| 78,362 |
| 5,604 |
|
Net income (loss) |
| 356,428 |
| (5,529,008 | ) | 4,522,474 |
| (1,568,382 | ) |
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to the noncontrolling interests |
| (62,312 | ) | (165,499 | ) | (1,133,792 | ) | (284,500 | ) |
Net income (loss) attributable to Bona Film Group Limited |
| 418,740 |
| (5,363,509 | ) | 5,656,266 |
| (1,283,882 | ) |
Net income (loss) attributable to Bona Film Group Limited per ADS |
|
|
|
|
|
|
|
|
|
Basic |
| 0.01 |
| (0.09 | ) | 0.09 |
| (0.02 | ) |
Diluted |
| 0.01 |
| (0.09 | ) | 0.09 |
| (0.02 | ) |
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating net income (loss) per ordinary share |
|
|
|
|
|
|
|
|
|
Basic |
| 30,106,487 |
| 29,666,695 |
| 29,870,809 |
| 29,514,979 |
|
Diluted |
| 30,796,988 |
| 29,666,695 |
| 30,436,728 |
| 29,514,979 |
|
BONA FILM GROUP LIMITED
Unaudited Condensed Statement of Consolidated Comprehensive Income
(in U.S. dollars)
|
| Three-months ended December 31 |
| Twelve-months ended December 31 |
| ||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
|
Net income (loss) |
| 356,428 |
| (5,529,008 | ) | 4,522,474 |
| (1,568,382 | ) |
Other comprehensive income, net of tax |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
| 1,219,002 |
| 842,939 |
| 3,057,062 |
| 1,030,733 |
|
Comprehensive income (loss) |
| 1,575,430 |
| (4,686,069 | ) | 7,579,536 |
| (537,649 | ) |
Less: comprehensive loss attributable to the noncontrolling interests |
| (64,059 | ) | (150,142 | ) | (1,124,577 | ) | (282,552 | ) |
Comprehensive income (loss) attributable to Bona Film Group Limited |
| 1,639,489 |
| (4,535,927 | ) | 8,704,113 |
| (255,097 | ) |
BONA FILM GROUP LIMITED
Unaudited Condensed Consolidated Balance Sheets
(in U.S. dollars)
|
| December 31 |
| December 31 |
|
|
| 2013 |
| 2012 |
|
|
|
|
|
|
|
Cash and cash equivalents |
| 32,684,423 |
| 23,227,922 |
|
Restricted Cash |
| 30,727,502 |
| 4,815,332 |
|
Accounts receivable, net of allowance for doubtful accounts |
| 39,409,151 |
| 40,307,672 |
|
Prepaid expenses and other current assets |
| 17,325,791 |
| 23,329,262 |
|
Amount due from related parties |
| 510,116 |
| 343,817 |
|
Current deferred tax assets |
| 973,080 |
| 970,683 |
|
Inventories |
| 312,907 |
| 276,436 |
|
Total current assets |
| 121,942,970 |
| 93,271,124 |
|
|
|
|
|
|
|
Distribution rights |
| 6,554,057 |
| 11,406,692 |
|
Production costs |
| 142,245,594 |
| 90,345,409 |
|
Prepaid film costs |
| 4,406,013 |
| 7,426,915 |
|
Property and equipment, net |
| 63,678,652 |
| 60,208,609 |
|
Acquired intangible assets, net |
| 2,451,801 |
| 3,189,481 |
|
Non-current deferred tax assets |
| 509,730 |
| 311,102 |
|
Cost method investments |
| 1,479,113 |
| 1,296,307 |
|
Equity method investments |
| 26,277,613 |
| — |
|
Goodwill |
| 50,540,017 |
| 49,110,021 |
|
Total assets |
| 420,085,560 |
| 316,565,660 |
|
|
|
|
|
|
|
Accounts payable |
| 24,540,234 |
| 35,257,660 |
|
Accrued expenses and other current liabilities |
| 32,634,753 |
| 28,145,099 |
|
Amounts due to related parties |
| 5,885,724 |
| 5,746,328 |
|
Income tax payable |
| 6,460,253 |
| 2,420,443 |
|
Bank borrowing |
| 60,703,791 |
| 12,542,161 |
|
Other borrowing |
| 4,126,402 |
| 8,671,050 |
|
Current film participation financing liabilities |
| 43,821,650 |
| 15,086,892 |
|
Total current liabilities |
| 178,172,807 |
| 107,869,633 |
|
|
|
|
|
|
|
Bank borrowing |
| 20,000,000 |
| 18,025,553 |
|
Deferred income |
| 1,358,577 |
| 813,681 |
|
Non-Current film participation financing liabilities |
| 17,675,141 |
| — |
|
Deferred tax liability |
| 23,626 |
| 211,203 |
|
Total liabilities |
| 217,230,151 |
| 126,920,070 |
|
|
|
|
|
|
|
Ordinary shares (par value of US$0.0005 per share, 85,000,000 shares authorized, 31,402,346 and 30,160,235 shares issued and outstanding as of December 31, 2013 and 30,402,346 and 29,737,257 shares issued and outstanding as of December 31, 2012.) |
| 15,080 |
| 14,869 |
|
Additional paid-in capital |
| 182,781,563 |
| 176,134,737 |
|
Statutory reserves |
| 3,533,885 |
| 2,543,272 |
|
Accumulated profit |
| 5,216,171 |
| 550,518 |
|
Accumulated other comprehensive income |
| 9,512,937 |
| 6,465,090 |
|
Total Bona Film Group Limited’s equity |
| 201,059,636 |
| 185,708,486 |
|
|
|
|
|
|
|
Noncontrolling interests |
| 1,795,773 |
| 3,937,104 |
|
Total equity |
| 202,855,409 |
| 189,645,590 |
|
|
|
|
|
|
|
Total liabilities and equity |
| 420,085,560 |
| 316,565,660 |
|
BONA FILM GROUP LIMITED
Unaudited Reconciliation of Non-GAAP Measures
(in U.S. dollars)
|
| Three-months ended December 31, |
| Twelve-months ended December 31, |
| ||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
|
Net income (loss) |
| 356,428 |
| (5,529,008 | ) | 4,522,474 |
| (1,568,382 | ) |
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
| 1,172,324 |
| 1,367,266 |
| 3,958,407 |
| 4,803,163 |
|
Net income (loss), Non-GAAP |
| 1,528,752 |
| (4,161,742 | ) | 8,480,881 |
| 3,234,781 |
|
|
|
|
|
|
|
|
|
|
|
Interests |
| (135,694 | ) | 188,247 |
| 1,100,462 |
| 152,896 |
|
Taxes |
| 4,085,308 |
| 333,611 |
| 5,130,025 |
| 1,322,368 |
|
Depreciation & Amortization |
| 1,482,285 |
| 1,212,750 |
| 5,723,479 |
| 4,370,679 |
|
Adjusted EBITDA, Non-GAAP |
| 6,960,651 |
| (2,427,134 | ) | 20,434,847 |
| 9,080,724 |
|