● | Net revenues decreased 7.2% year-over-year in Q1 2020 to US$8.0 million. |
● | Gross profit decreased 12.3% year-over-year in Q1 2020 to US$5.5 million. |
● | Gross margin was 68.8% in Q1 2020, compared to 72.8% in Q1 2019. |
● | Loss from continuing operations was US$0.3 million in Q1 2020, compared to income from continuing operations of US$0.6 million in Q1 2019. |
● | Net income was US$2.7 million in Q1 2020 as compared to net income of US$4.8 million in Q1 2019. In Q1 2020, the Company recorded a $3.0 million gain from the sale of shares of E-Money Holding Co., Ltd. (“E-Money”) (formerly known as Shanghai Yimeng Software Technology Co., Ltd.). The year-ago period includes a US$3.8 million gain on the sale of the Company’s former principal office in Shanghai to a third party. |
Contact: | |
Acorn International, Inc. | Compass Investor Relations |
Mr. Martin Key | Ms. Elaine Ketchmere, CFA |
Phone +86-21-5151-8888 | Phone: +1-310-528-3031 |
Email: [email protected] | Email: [email protected] |
www.chinadrtv.com | www.compassinvestorrelations.com |
For the three months ended | |||||
2019/03/31 | 2020/03/31 | ||||
(Unaudited) | (Unaudited) | ||||
Net revenues | |||||
Direct sales | $ | 7,204,182 | $ | 6,894,582 | |
Distribution sales | 1,449,322 | 1,138,259 | |||
Total net revenues | 8,653,504 | 8,032,841 | |||
Cost of revenues | |||||
Direct sales | -1,836,452 | -2,097,431 | |||
Distribution sales | -519,897 | -411,327 | |||
Total cost of revenues | -2,356,349 | -2,508,758 | |||
Gross profit | |||||
Direct sales | 5,367,729 | 4,797,151 | |||
Distribution sales | 929,425 | 726,932 | |||
Total gross profit | 6,297,154 | 5,524,083 | |||
72.8 | % | 68.8 | % | ||
Operating (expenses) income | |||||
Other selling and marketing expenses | -3,868,281 | -4,089,335 | |||
General and administrative expenses | -2,452,609 | -2,138,118 | |||
Other operating income, net | 580,576 | 434,297 | |||
Total operating (expenses) income | -5,740,314 | -5,793,156 | |||
Income (loss) from continuing operations | 556,841 | -269,073 | |||
Interest expense | - | -21,378 | |||
Interest income | 82,361 | 46,017 | |||
Other income (expenses), net | 4,573,849 | 3,048,180 | |||
Income (loss) from continuing operations before income taxes and equity in losses of affiliates | 5,213,051 | 2,803,746 | |||
Income tax - current | -307,585 | - | |||
Income tax - deferred | 0 | -36,812 | |||
Income (loss) from continuing operations before equity in losses of affiliates | 4,905,466 | 2,766,934 | |||
Discontinued operations : | |||||
Income (loss) from discontinued operations | -110,673 | -27,887 | |||
Income (loss) from discontinued operations before equity in losses of affiliates | -110,673 | -27,887 | |||
Equity in losses of affiliates | - | ||||
Net income (loss) | 4,794,793 | 2,739,047 | |||
Net income (loss) attributable to non-controlling interests | 1,738 | -211 | |||
Net income (loss) attributable to Acorn International, Inc. | $ | 4,796,531 | $ | 2,739,258 |
2019/12/31 | 2020/03/31 | |||
Cash and cash equivalents | $ | 13,461,368 | $ | 13,825,003 |
Restricted cash | 75,543 | 74,918 | ||
Accounts receivable, net | 3,611,177 | 4,731,741 | ||
Inventory, net | 3,042,762 | 2,528,777 | ||
Other prepaid expenses and current assets | 7,112,042 | 9,837,301 | ||
Loan receivable | 3,754,735 | 3,776,552 | ||
Held-for-sale assets | 468,191 | 466,431 | ||
Assets to be abandoned | 116,559 | - | ||
Current assets | 31,642,377 | 35,240,722 | ||
Property and equipment, net | 559,964 | 544,058 | ||
Investments in affiliates | - | 91,309 | ||
Available-for-sale securities | 25,681,848 | 20,705,511 | ||
Loan to related party | 14,804,052 | 14,698,550 | ||
Right of use assets | 1,785,194 | 1,533,427 | ||
Deferred tax assets, net | 4,997,111 | 4,963,568 | ||
Other long-term assets | 693,518 | 732,396 | ||
Total assets | $ | 80,164,064 | $ | 78,509,540 |
Accounts payable | 3,172,263 | 2,141,762 | ||
Dividend payable | 133,405 | 131,206 | ||
Accrued expenses and other current liabilities | 6,564,390 | 8,773,664 | ||
Lease Liability | 881,349 | 858,089 | ||
Income taxes payable | 1,648,520 | 1,615,086 | ||
Deferred revenue | 68,798 | 42,338 | ||
Liabilities to be abandoned | 222,578 | - | ||
Current liabilities | 12,691,303 | 13,562,145 | ||
Lease Liability | 1,032,645 | 814,786 | ||
Deferred tax liability, net | - | - | ||
Total liabilities | 13,723,948 | 14,376,932 | ||
Ordinary shares | 918,844 | 918,844 | ||
Additional paid-in capital | 117,445,969 | 117,445,969 | ||
Statutory reserve | 8,350,141 | 8,350,141 | ||
Retained earnings | (77,913,299 | ) | (75,174,041 | ) |
Beginning balance | (87,749,530 | ) | (77,913,299 | ) |
Net income (loss) attributable to Acorn | 9,836,231 | 2,739,258 | ||
Appropriation of statutory reserve fund | - | - | ||
Accumulated other comprehensive income | 45,635,771 | 40,594,179 | ||
Treasury stock, at cost | (28,320,324 | ) | (28,320,324 | ) |
Total Acorn International, Inc. shareholders' equity | 66,117,102 | 63,814,768 | ||
Noncontrolling interests | 323,014 | 317,841 | ||
Total equity | 66,440,116 | 64,132,609 | ||
Total liabilities and equity | $ | 80,164,064 | $ | 78,509,540 |