Post Earnings Coverage as VisionChina Media Reported Positive Earnings for the Third Quarter
Upcoming AWS Coverage on Omnicom Group
LONDON, UK / ACCESSWIRE / January 6, 2017 / Active Wall St. announces its post-earnings coverage on VisionChina Media Inc. (NASDAQ: VISN). The Company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on December 27, 2016. The Beijing, China-based Company's total revenue rose 3.5% y-o-y and reported positive net earnings in Q3 FY16. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of VisionChina Media's competitors within the Advertising Agencies space, Omnicom Group Inc. (NYSE: OMC), is estimated to report earnings on February14, 2017. AWS will be initiating a research report on Omnicom Group following the release of its earnings numbers.
Today, AWS is promoting its earnings coverage on VISN; touching on OMC. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=VISN
http://www.activewallst.com/registration-3/?symbol=OMC
Earnings Reviewed
During the quarter ended September 30, 2016, VisionChina Media reported total revenues of $12.79 million, compared to $11.79 million in the year ago same quarter. The Company's advertising service revenue fell to $10.82 million in Q3 FY16 from $11.50 million in Q3 FY15. Furthermore, other revenues surged during Q3 FY16 to $1.97 million from $0.29 million in the year ago comparable quarter.
For the reported period, the out-of-home advertising Company's net profit attributed to VisionChina Media came in at $3.21 million, or $0.01 per diluted share, compared to net loss attributed to VisionChina Media of $5.01 million, or $0.05 loss per diluted share, in Q3 FY15. Furthermore, the Company reported diluted net income of $0.19 per American Depository Share (ADS) in Q3 FY16 versus diluted net loss of $0.98 per ADS in Q3 FY15.
Operating Metrics
In Q3 FY16, the Company had total broadcasting hours of 27,788 hours compared to 32,340 hours in the prior year's corresponding quarter. Moreover, VisionChina Media had sold a total of 102,523 advertising minutes in Q3 FY16 versus 207,532 advertising minutes in Q3 FY15. The Company's advertising minutes per broadcasting hour was down to 3.69 in the reported quarter from 6.42 in the previous year's same quarter. Furthermore, only 144 advertisers purchased advertising time on the Company's network in Q3 FY16, down from 257 advertisers in Q3 FY15.
VisionChina Media's total cost of revenue was down by 6.1% during the reported quarter to $11.58 million from $12.34 million in Q3 FY15. The Company's gross profit for Q3 FY16 stood at $1.21 million compared to gross loss of $0.55 million in the prior year's same quarter. Total operating expenses during Q3 FY16 was $4.30 million compared to $5.66 million in Q3 FY15. Moreover, the Company's operating loss narrowed during Q3 FY16 to $2.82 from operating loss of $6.96 million in Q3 FY15.
Balance Sheet & Cash Flow
For Q3 FY16, VisionChina Media's cash used in operating activities was $13.5 million compared to net cash provided by operating activities of $2.4 million in the prior year's corresponding quarter. The Company ended the quarter with cash and cash equivalents balance of $14.98 million against $8.54 million as of December 31, 2015.
Stake Sale in Subway Mobile TV Advertising Business
On September 14, 2016, VisionChina Media announced that it had completed the sale of the 49% equity stake in VisionChina New Culture Media Co., Ltd ("New Culture"), the Company's operating entity for subway mobile TV advertising business, to Ledman Optoelectronic Co., Ltd. As sales proceeds, the company received RMB61.0 million in cash and 17.09 million shares of Ledman, valued at RMB18.8 per share.
Furthermore, in October 2016, the Company entered into a 5% equity sale agreement in New Culture with De Heng He Tai Investment Company Limited. The Company received all cash compensation of RMB39.0 million. VisionChina Media now holds 46% equity interest in New Culture after the transaction.
Stock Performance
At the close of trading session on January 05, 2017, VisionChina Media's stock price declined 1.22% to end the day at $4.00. A total volume of 61.53 thousand shares were exchanged during the session, which was above the 3-month average volume of 18.29 thousand shares. The stock currently has a market cap of $20.96 million.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
