YOU On Demand Reports 2013 Q2 Results

YOU On Demand Reports 2013 Q2 Results

Investor Update Call Scheduled Today at 4:30 p.m. ET

NEW YORK, Aug. 14, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), the first national Video On Demand (VOD) platform in China, today announced its operating results for the three- and six-month periods ending June 30, 2013 (a full copy of its quarterly report on Form 10-Q will be posted at www.sec.gov). Chairman Shane McMahon and President and CFO Marc Urbach are hosting an investor update conference call today at 4:30 p.m. ET to discuss the Company's recent results. The conference call dial-in is (800) 616-4018.

Marc Urbach, YOU On Demand's President & CFO, stated, "The cash and cash equivalents line item on our balance sheet at June 30 does not reflect two significant transactions that closed subsequent to the end of our most recent fiscal quarter which will ultimately provide gross proceeds totaling approximately $8.7 million: C Media's Phase 1 strategic investment and the sale of YOU On Demand's legacy Jinan Broadband asset. Further, as a result of the sale of Jinan Broadband, we are now exclusively focused on operating YOU On Demand's VOD platform."

Shane McMahon, YOU On Demand's Chairman, concluded, "With our liquidity position much improved, our management team better-aligned and key mobile partner C Media onboard, we believe YOD is in a strong position to further leverage its growing brand and catalogue of premium content, by exploring popular platforms such as mobile and internet, which will complement our existing digital cable platform."

It is important to note that YOU On Demand's revenues for the prior-year quarter and six-month periods principally reflect the operations of one of its two legacy businesses (Shandong Media), which has subsequently been sold (except for a 30% interest). Current quarter and six-month 2013 revenues do not reflect contributions from either holding.

About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD) is the first national Video On Demand platform in China. The Company offers premium content, including leading Hollywood and China-produced movie titles, to customers across China through its Transactional Video On Demand (TVOD), Subscription Video On Demand (SVOD) and Near Video On Demand (NVOD) services. YOU On Demand has secured alliances with leading global media operators and content developers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.

YOU On Demand currently has content deals in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, Universal Pictures, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.

Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.


CONTACT:

Jason Finkelstein Robert Rinderman or Norberto Aja

YOU On Demand JCIR - Investor Relations/Corporate
Communications

212-206-1216 212-835-8500

jason.finkelstein@yod.com YOD@jcir.com

@youondemand




- Financial Tables Follow -





YOU On Demand Holdings, Inc. and Its Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30,

2013 2012 2013 2012

(unaudited) (unaudited) (unaudited) (unaudited)


Revenue $50,619 $931,458 $51,557 $1,695,526

Cost of revenue 790,019 1,064,554 1,638,604 2,024,782
------- --------- --------- ---------

Gross Loss (739,400) (133,096) (1,587,047) (329,256)
-------- -------- ---------- --------


Operating expense:

Selling, general and administrative expenses 1,997,561 2,388,356 3,899,940 4,799,557

Professional fees 299,027 528,415 625,312 940,792

Depreciation and amortization 173,394 550,233 466,227 1,091,589

Impairments of long-lived assets 311,249 - 311,249 -
------- --- ------- ---

Total operating expense 2,781,231 3,467,004 5,302,728 6,831,938
--------- --------- --------- ---------


Loss from operations (3,520,631) (3,600,100) (6,889,775) (7,161,194)


Interest & other income / (expense)

Interest income 225 1,215 574 2,403

Interest expense (29,929) (18,643) (59,638) (19,897)

Stock purchase right - (43,748) - (43,748)

Change in fair value of warrant liabilities (4,885) - (30,290) -

Change in fair value of contingent consideration (42,046) 248,632 (83,694) (463,433)

Gain (loss) on investment in unconsolidated entities 2,275 (8,314) (719) (12,506)

Loss on write-off of uncollectible loans - (473,698) - (473,698)

Other 71,777 (58,383) 70,596 (58,562)
------ ------- ------ -------


Net loss before income taxes and noncontrolling interest (3,523,214) (3,953,039) (6,992,946) (8,230,635)


Income tax benefit 29,821 100,082 60,961 170,100
------ ------- ------ -------


Net loss from continuing operations (3,493,393) (3,852,957) (6,931,985) (8,060,535)


Net loss from discontinued operations (97,823) (397,467) (334,398) (974,418)
------- -------- -------- --------


Net loss (3,591,216) (4,250,424) (7,266,383) (9,034,953)


Plus: Net loss attributable to noncontrolling interests 310,771 528,805 641,173 1,093,262
------- ------- ------- ---------


Net loss attributable to YOU On Demand shareholders $(3,280,445) $(3,721,619) $(6,625,210) $(7,941,691)
=========== =========== =========== ===========


Basic earnings per share

Loss from continuing operations $(0.22) $(0.33) (0.44) $(0.71)

Loss from discontinued operations nil (0.02) (0.01) (0.05)
--- ----- ----- -----

Basic earnings per share $(0.22) $(0.35) (0.45) $(0.76)
====== ====== ===== ======


Diluted earnings per share

Loss from continuing operations $(0.22) $(0.33) (0.44) $(0.71)

Loss from discontinued operations nil (0.02) (0.01) (0.05)
--- ----- ----- -----

Diluted earnings per share $(0.22) $(0.35) (0.45) $(0.76)
====== ====== ===== ======


Weighted average shares outstanding

Basic 14,938,780 10,530,916 14,771,261 10,499,247
========== ========== ========== ==========

Diluted 14,938,780 10,530,916 14,771,261 10,499,247
========== ========== ========== ==========




YOU On Demand Holdings, Inc. and Its Subsidiaries

CONSOLIDATED BALANCE SHEETS


June 30, December 31,

2013 2012

(Unaudited)
----------

ASSETS

Current assets:

Cash and cash equivalents $291,804 $3,277,891

Marketable equity securities, available for sale 1,371 2,229

Accounts receivable, net 16,344 -

Licensed content, current 994,125 681,457

Prepaid expenses 308,394 412,669

Other current assets 80,678 135,486

Current assets of discontinued operations 1,226,294 1,498,852
--------- ---------

Total current assets 2,919,010 6,008,584


Property and equipment, net 611,431 729,763

Licensed content, noncurrent 280,505 530,367

Intangible assets, net 2,786,345 3,416,858

Goodwill 6,105,478 6,105,478

Investment in unconsolidated entities 667,855 655,834

Non-current assets of discontinued operations 4,803,367 5,011,161
--------- ---------

Total assets $18,173,991 $22,458,045
=========== ===========


LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $2,434,474 $885,366

Accrued expenses and liabilities 1,412,708 953,134

Deferred license fees, current 856,467 -

Other current liabilities 69,907 708,367

Contingent purchase price consideration liability, current 410,475 368,628

Convertible promissory note 3,000,000 3,000,000

Warrant liabilities 908,670 878,380

Current liabilities of discontinued operations 4,982,826 5,197,450
--------- ---------

Total current liabilities 14,075,527 11,991,325



Deferred license fees, noncurrent - 460,547

Contingent purchase price consideration liability 410,475 368,628

Deferred tax and uncertain tax position liabilities 176,114 237,075

Non-current liabilities of discontinued operations 68,774 68,774
------ ------

Total liabilities 14,730,890 13,126,349


Commitments and Contingencies


Convertible redeemable preferred stock, $.001 par value; 50,000,000


Shares authorized

Series A - 7,000,000 shares issued and outstanding, liquidation preference of $3,500,000 at June 30, 2013 and December 31, 2012, respectively 1,261,995 1,261,995


Series B -0 and 7,866,800 shares issued and outstanding, liquidation preference of $0 and $3,933,400 at June 30, 2013 and December 31, 2012,
respectively - 3,223,575


Series C - 250,000 shares issued and outstanding, liquidation preference of $1,000,000 at June 30, 2013 and December 31, 2012, respectively 627,868 627,868


Equity:

Common stock, $.001 par value; 1,500,000,000 shares authorized, 15,288,040 and 13,742,394 shares issued at June 30, 2013 and December 31,
2012, respectively 15,288 13,742

Additional paid-in capital 66,886,440 62,388,502

Accumulated deficit (65,466,874) (58,841,664)

Accumulated other comprehensive income 686,568 604,632
------- -------

Total YOU On Demand equity 2,121,422 4,165,212

Noncontrolling interests (568,184) 53,046
-------- ------


Total equity 1,553,238 4,218,258
--------- ---------


Total liabilities and equity $18,173,991 $22,458,045
=========== ===========



SOURCE YOU On Demand Holdings, Inc.

YOU On Demand Holdings, Inc.

Web Site: http://www.yod.com


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