Knobias Clip Report (02-28-2008)
Submitted By Knobias ClipReport
VISN: Fourth Quarter Earnings Display Impressive Growth
VisionChina Media Inc. (VISN) reported their fourth quarter earnings that displayed some significant growth. Following the announcement, shares were up some 18% on heavy volume.
The Company operates an out-of-home advertising network on mass transportation systems, including buses and subways that supposedly reach over 26 million viewers each day in China, according to CTR Market Research.
As of December 31, 2007, VisionChina’s advertising network included over 41,400 digital television displays on mass transportation systems in 15 of China’s most affluent cities, including Beijing, Guangzhou and Shenzhen. VisionChina has the unique ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports and other entertainment programming.
The Company’s revenues in the fourth quarter totaled $12.0 million. The number represented a 495.2% year-over year growth and a 29% quarter over quarter growth. Advertising services revenues grew 924.3% year-over-year and 34.2% quarter over quarter. Net income in the fourth quarter of 2007 was $5.7 million, an increase of 52.7% from $3.8 million in the third quarter of 2007, and a significant turn-around from a $2.2 million net loss in the fourth quarter of 2006. Earnings per share were reported at 10c v a loss of 13c. Proforma EPS was 10c versus a loss of 6c.
For the year, total revenues grew 658.7% to $29.4 million, out of which advertising services revenues grew 1,252.1% over the previous year to $27.5 million. Earnings per share were reported at 11c versus a loss of 26c. Proforma earnings were 19c versus a loss of 13c.
The Company also gave guidance which had many take notice. The Company estimated its total revenues for the first quarter of 2008 will range from $12.5 million to $13.5 million, out of which advertising service revenues is expected to be between $12.0 to $13.0 million. The Company estimated its total revenues for full year 2008 to range from $90 million to $94 million. Estimates for the first quarter called for revenue of $11.7 million. Estimates for 2008 were $88.95 million. Excluding share based compensation and fixed media cost payments, first quarter Non GAAP net income was expected to be between $4.8 million and $5.4 million. For the year, Non GAAP net income was expected to be between $38 million to $40 million.
With the Olympics right around the corner, the Company is certainly trying to capitalize. According to Limin Li, VISN’s Chairman and CEO, “This summer, the Olympic Games will be aired on our screens on buses and subways in Beijing and other cities, giving us an unprecedented opportunity to showcase our offerings to China and the world.”
In the earnings release, the Company displayed a successful increase in the sold advertising minutes per broadcasting hour and an increase in the revenues per broadcasting hour. Revenues per broadcasting hours saw a significant jump from $383 in the third quarter to $474 in the fourth quarter. With the Olympics on the horizon, those numbers could see a continued climb. With that in mind, the Company is certainly one to watch.
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