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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:



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.

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SOURCE: Active Wall Street