Cool 6 Media's fourth quarter gross profit turned around for the first time

On the evening of the 9th, Ku6 Media today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2014. In the fourth quarter, Ku6 Media achieved its first profit in gross profit since its establishment.

On the evening of March 9, Beijing time, Ku6 Media (Nasdaq:KUTV) today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2014. In the fourth quarter, Ku6 Media achieved its first profit in gross profit since its establishment.

The report shows that Ku6 Media's total revenue in the fourth quarter was US$3.47 million, an increase of 114.2% from US$1.62 million in the previous quarter and an increase of 6.8% from US$3.25 million in the same period last year; the net loss in the fourth quarter was US$40,000, compared with US$930,000 in the previous quarter, compared with US$26.78 million in the same period last year. Total revenue in fiscal year 2014 was US$8.58 million (approximately RMB 52.93 million), compared with US$13.14 million in the previous year, a year-on-year decrease; the net loss in fiscal year 2014 was US$3.56 million (approximately RMB 21.83 million), while the net loss for the previous year was US$2.84 million, a year-on-year decrease.

Fourth-quarter earnings highlights:

-Total revenue was US$3.47 million (21.35 million yuan), compared with US$1.62 million in the third quarter of 2014 and US$3.25 million in the fourth quarter of 2013.

- The net loss was US$40,000 (RMB 200,000), compared to US$0.93 million in the third quarter of 2014 and US$26.78 million in the fourth quarter of 2013.

- Basic and diluted loss per ADS share was US$0.00 (RMB 0.01), compared to US$0.02 in the third quarter of 2014 and US$0.57 in the fourth quarter of 2013.

- As of December 31, 2014, Ku6 Media held cash and cash equivalents of US$4.38 million (RMB 27.18 million).

- Net cash inflow from operating activities in the fourth quarter was US$1.6 million (RMB 9.97 million), compared with net cash consumption of US$3 million in the third quarter of 2014 and US$4.54 million in the fourth quarter of 2013.

Highlights of the 2014 full-year financial report:

-Total revenue was US$8.58 million (52.93 million yuan), compared with US$13.14 million in 2013.

- The net loss was US$10.73 million (65.92 million yuan), compared to US$34.43 million in 2013.

- Basic and diluted loss per ADS share was US$0.23 (RMB 1.40), compared to US$0.73 in 2013.

- Net cash consumption from operating activities was US$5.21 million (32.06 million yuan), compared to US$11.53 million in 2013.

Fourth-quarter earnings details:

Total revenue was US$3.47 million, an increase of 114.2% from US$1.62 million in the third quarter of 2014 and an increase of 6.8% from US$3.25 million in the fourth quarter of 2013.

Cost of revenue was $2.39 million, a decrease of 3.6% from $2.48 million in the third quarter of 2014 and a decrease of 54.6% from $5.26 million in the fourth quarter of 2013.

Gross profit was US$1.08 million, compared to-870,000 in the third quarter of 2014 and-2.01 million in the fourth quarter of 2013. The increase in gross profit compared to the third quarter was mainly due to increased revenue.

Operating expenses were US$1.2 million, a decrease of 25.0% from US$1.6 million in the third quarter of 2014 and a decrease of 96.1% from US$30.93 million in the fourth quarter of 2013. The significant year-on-year decrease in operating expenses was mainly due to the impairment of goodwill and intangible assets of US$27.23 million in Ku6 Media in the fourth quarter of 2013.

Operating loss was $120,000, compared to $2.47 million in the third quarter of 2014 and $32.94 million in the fourth quarter of 2013.

The net loss was $40,000, compared with a net loss of $930,000 in the third quarter of 2014 and a net loss of $26.78 million in the fourth quarter of 2013. The significant year-on-year decrease in net loss was mainly due to the impairment of goodwill and intangible assets in the fourth quarter of 2013.

Basic and diluted net loss per ADS share was US$0.00 (RMB 0.01), compared to US$0.02 in the third quarter of 2014 and US$0.57 in the fourth quarter of 2013. In the fourth quarter, the weighted average total number of ADS shares used to calculate net loss per ADS share was 47.6 million shares, compared with 47.6 million shares in the third quarter of 2014 and 47.3 million shares in the fourth quarter of 2013.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $220,000, compared to a loss of $2.05 million in the third quarter of 2014 and a loss of $30.98 million in the fourth quarter of 2013.

As of December 31, 2014, Ku6 Media held cash and cash equivalents of US$4.38 million, compared with US$2.77 million as of September 30, 2014 and US$1.67 million as of December 31, 2013. This increase was mainly due to increased revenue.

Editor: vian