TechWeb

VisionChina Media Announces Fourth Quarter and Full-Year 2009 Results

Mar 02, 2010 (04:03 PM EST)
URL: http://www.techweb.com/show-press-release/X793958/visionchina-media-announces-fourth-quarter-and-full-year-2009-results.html

    BEIJING, March 2 /PRNewswire-Asia/ --

    -- Full-Year 2009 Revenues Grew 16.0% Year-over-Year
    -- Company Recorded Full-year Basic and Diluted EPS of $0.37 and
    -- Fourth Quarter Basic and Diluted EPS of $0.08
    -- Company's full-year net income attributable to it shareholders was
       $26.6 million
    -- Company's non-GAAP full-year net income attributable to its
       shareholders exceeded guidance

VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced its unaudited financial results for the fourth quarter and full-year ended December 31, 2009.

    Fourth Quarter 2009 Highlights

    -- Total revenues in the fourth quarter of 2009 increased 3.4%
       quarter-over-quarter to $31.8 million.
    -- Gross profit in the fourth quarter of 2009 was $14.5 million,
       representing a decrease of 5.5% from $15.4 million in the third quarter
       of 2009.
    -- Operating profit in the fourth quarter of 2009 was $6.3 million, a
       decrease of 13.9% from $7.3 million in the third quarter of 2009.
    -- Net income attributable to VisionChina Media shareholders in the fourth
       quarter of 2009 was $5.6 million, a decrease of 21.6% from $7.2 million
       in the third quarter of 2009.
    -- The Company's fourth quarter net income attributable to VisionChina
       Media shareholders, excluding share-based compensation expenses and
       amortization of intangible assets ("non-GAAP net income") was $7.2
       million, compared to non-GAAP net income of $9.1 million in the third
       quarter of 2009.
    -- Basic and diluted net income per share in the fourth quarter of 2009
       were $0.08 and $0.08, respectively (each ADS representing one common
       share), compared to $0.10 and $0.10 respectively in the third quarter
       of 2009.
    -- The Company had cash and cash equivalents of $68.8 million as of
       December 31, 2009, a decrease of $43.8 million from $112.7 million as
       of September 30, 2009. The decrease was mainly a result of a restricted
       deposit pledged for obtaining an offshore foreign currency bank
       facility for the payment of the first installment of the consideration
       for the acquisition of Digital Media Group Company Limited ("DMG" or
       "Digital Media Group"). The Company generated cash flows from operating
       activities of $18.7 million in the fourth quarter of 2009, compared to
       $8.1 million in the third quarter of 2009.
    -- Network capacity, which is measured by total broadcasting hours in the
       Company's network, reached 36,250 hours in the fourth quarter of 2009,
       compared to 34,778 hours in the third quarter of 2009.
    -- As of December 31, 2009, the Company had installed a total of 89,299
       digital displays on buses, subway trains and subway platforms.
    -- On average, the Company sold 6.93 advertising minutes per broadcasting
       hour in the fourth quarter of 2009, compared to 6.86 advertising
       minutes per broadcasting hour in the third quarter of 2009.
    -- Average advertising service revenue per broadcasting hour was $796 in
       the fourth quarter of 2009, compared to $845 in the third quarter of
       2009.


    Full-Year 2009 Highlights
    -- Total revenues in the full-year 2009 increased 16.0% year-over-year to
       $120.7 million.
    -- Gross profit in the full-year 2009 decreased 5.4% to $59.6 million,
       from $63.0 million in 2008.
    -- Operating profit in the full-year 2009 decreased 36.1% to $27.1 million,
       from $42.4 million in 2008.
    -- Net income attributable to VisionChina Media shareholders in the
       full-year 2009 decreased 43.2% to $26.6 million, from $46.8 million in
       2008.
    -- Non-GAAP net income in the full-year 2009 was $33.7 million, exceeding
       the Company's guidance of $31.0 million to $33.0 million.
    -- Basic and diluted net incomes per share during the full-year 2009 were
       $0.37 and $0.37, respectively (each ADS representing one common share),
       compared to $0.67 and $0.65, respectively during the full-year 2008.
    -- Network capacity, which is measured by total broadcasting hours in the
       Company's network, reached 138,164 hours in 2009, compared to 119,170
       hours in 2008.
    -- The Company sold an average of 6.47 advertising minutes per
       broadcasting hour in 2009, compared to an average of 7.72 advertising
       minutes per broadcasting hour in 2008.
    -- Average advertising service revenue per broadcasting hour decreased
       2.1% in 2009 to $825, compared to $843 in 2008.

Mr. Limin Li, VisionChina Media's chairman and chief executive officer, commented, "Although the challenges faced by our industry throughout a difficult 2009 extended into the fourth quarter, we were pleased to end the year above our own expectations. Our most significant and important corporate development in 2009 was our decision to acquire Digital Media Group, which closed in the beginning of 2010. Our combined platform has enabled us to increase the depth and breadth of our network, reinforce our ability to offer our clients an integrated advertising solution on both bus and subway advertising platforms in certain cities across China and help reduce competitive pressure. We are currently integrating our acquisition of Digital Media Group and are optimistic about the long-term benefits presented by our strengthened competitive position."

Scott Chen, VisionChina Media's chief financial officer, added, "We were pleased to finish the year strongly and within our financial targets. Looking forward, we are encouraged by recent new customer wins that demonstrate the industry's increasing recognition of the value of our unique breadth of services. In the near-term, however, we expect a number of factors will negatively impact our revenue including industry competition, restructuring our sales force and integrating our acquisition of Digital Media Group. As a result of these factors, we anticipate that sales visibility for the first quarter of 2010 will be limited. In addition, a late Chinese New Year holiday this year, has hindered our ability to build sales momentum at the start of the quarter for our new platform. However, our integration with Digital Media Group and our new sales force restructuring have now been implemented and we believe full-year 2010 will give us the opportunity to clearly demonstrate the synergies of our expanded platform."

Fourth Quarter 2009 Results

VisionChina Media's total revenues were $31.8 million in the fourth quarter of 2009, an increase of 3.4% from $30.8 million in the third quarter of 2009.

Total broadcasting hours in the fourth quarter of 2009 were 36,250 hours, compared to 34,778 hours in the third quarter of 2009. Average advertising revenue per broadcasting hour was $796 in the fourth quarter of 2009 compared to $845 per broadcasting hour in the third quarter of 2009. On average, the Company sold 6.93 advertising minutes per broadcasting hour in the fourth quarter of 2009 compared to 6.86 advertising minutes per broadcasting hour in the third quarter of 2009.

During the fourth quarter of 2009, 354 advertisers purchased advertising time on the Company's advertising network either directly or through advertising agents compared to 334 advertisers in the third quarter of 2009.

Media cost, the most significant component of advertising service costs of total revenues, was $14.3 million in the fourth quarter of 2009, representing 82.8% of total advertising service costs, compared to $12.6 million, or 81.8% of total advertising service costs, in the third quarter of 2009. The increase in media cost for the fourth quarter of 2009 was primarily the result of increased media buying of advertising resources outside of the Company's exclusive network as a service to certain clients. As VisionChina Media's exclusive network has expanded in 2010, the Company expects the level of media purchases outside of its network to decrease in 2010 and future periods.

Gross profit in the fourth quarter of 2009 was $14.5 million, a decrease of 5.4% from $15.4 million in the third quarter of 2009. Advertising service gross margin was 45.6% in the fourth quarter of 2009, compared to 49.9% in the third quarter of 2009.

Selling and marketing expenses were $6.3 million in the fourth quarter of 2009, a decrease of 1.2% from $6.4 million in the third quarter of 2009. Selling and marketing expenses represented 19.7% of the Company's advertising service revenues in the fourth quarter of 2009 compared to 20.6% in the third quarter of 2009.

General and administrative expenses were $2.2 million in the fourth quarter of 2009, an increase of 30.9% from $1.6 million in the third quarter of 2009. The increase in the fourth quarter as compared with the third quarter was primarily attributable to costs associated with professional service fees incurred for the acquisition of Digital Media Group.

Loss from equity method investments amounted to $0.1 million in the fourth quarter of 2009, compared to a $0.3 million loss in the third quarter of 2009.

Operating profit was $6.3 million in the fourth quarter of 2009, a decrease of 13.9% from $7.3 million in the third quarter of 2009. The decrease was primarily due to a general increase in media costs and general and administrative expenses.

Net income attributable to VisionChina Media shareholders was $5.6 million in the fourth quarter of 2009, a decrease of 21.6% from $7.2 million in the third quarter of 2009. Basic and diluted net incomes per share in the fourth quarter of 2009 were $0.08 and $0.08, respectively. Non-GAAP net income in the fourth quarter was $7.2 million compared to $9.1 million in the third quarter of 2009.

As of December 31, 2009, the Company had 89,299 digital television displays in its network, compared to 84,560 as of September 30, 2009.

As of December 31, 2009, the Company had 553 employees, compared to 535 employees as of September 30, 2009,

The Company had cash and cash equivalents of $68.8 million as of December 31, 2009, a decrease of $43.9 million from $112.7 million as of September 30, 2009. The decrease was mainly a result of a restricted deposit pledged for obtaining an offshore foreign currency bank facility for the payment of the first installment of the consideration for the acquisition of Digital Media Group. Depreciation and amortization in the fourth quarter of 2009 was $1.3 million and capital expenditures were $0.2 million. The Company generated cash flows from operating activities of $18.7 million in the fourth quarter of 2009.

Full-Year 2009 Results

Total revenues in the full-year 2009 were $120.7 million, an increase of 16.0% from $104.1 in 2008.

Gross profit in the full-year 2009 was $59.6 million, a decrease of 5.4% from gross profit of $63.0 million in 2008. The year-over-year decrease in gross profit was primarily due to a general increase in media costs as the Company has expanded its media network. Advertising service gross margin was 49.4% in the full-year 2009.

Selling and marketing expenses in the full-year 2009 were $24.6 million, compared to $14.7 million in 2008. The increase was primarily attributable to the expansion of the Company's sales team, the strengthening of its sales capabilities, and the overall increase in sales activities in a market environment that was challenging throughout the full-year.

General and administrative expenses in the full-year 2009 were $7.4 million, compared to $5.4 million in 2008. The increase was primarily attributable to an increase in staff costs and management expenses related to the Company's expansion of operations in 2009.

Loss from equity method investments in the full-year 2009 amounted to $1.0 million, compared to a loss of $0.5 million in 2008. The increase was primarily a result of further media network development costs and challenging sales environments for certain of the Company's equity joint-venture entities in 2009.

Operating profit in the full-year 2009 was $27.1 million, a decrease of 36.1% from $42.4 million in 2008. The year-over-year decrease was primarily due to a general increase in media costs, as the Company has expanded its media network, and an increased sales and marketing expense in 2009.

The Company recognized an income tax expense of $2.3 million in the full-year 2009, compared to an income tax benefit of $0.2 million in 2008.

Net income attributable to VisionChina Media shareholders in the full-year 2009 was $26.6 million, compared to $46.8 million in 2008. The decrease was primarily due to the challenging sales environment seen in 2009 compared to 2008 deriving from the global economic recession. As a result, revenue growth did not expand in line with costs as the Company expanded in 2009. Basic and diluted net incomes per share in the full-year 2009 were $0.37 and $0.37, respectively. Non-GAAP net income in the full-year 2009 was $33.7 million, exceeding the Company's guidance of $31.0 million to $33.0 million.

Recent Developments

In January 2010, VisionChina Media announced the completion of the Company's previously announced acquisition of Digital Media Group, a leader in China's subway mobile television advertising market. The transaction creates China's largest and most comprehensive mobile television advertising network, furthering VisionChina Media's goal to become the foremost digital television platform reaching daytime audiences in China. The total consideration for the transaction, consisting of US$160 million in cash and shares, is payable by the Company to eligible shareholders of Digital Media Group in three installments over the next two years.

In December 2009, the Company signed an exclusive agreement with Changsha TV Digital Mobile Media Co. Ltd. expanding its network coverage to include Changsha, the capital city of Hunan province. The three-year exclusive agreement went into effect on January 1, 2010 and the Changsha mobile TV network features 2,444 screens on 1,222 buses.

Business Outlook

Total revenue in the first quarter of 2010 is expected to be no less than $22 million. During the first quarter, a number of factors have negatively impacted our revenue and revenue visibility. The Company expects that the negative impact of these factors will be short-term in nature and the Company expects revenue visibility to increase in subsequent quarters.

The Company bases these estimates on a foreign exchange rate of RMB6.8360 per US$1.00.

The Company noted that its guidance is based on its current network of 23 cities that, as of release date, have already been secured by contract. If and when more cities are added, either organically or through M&A activity, it will impact the management's forecast.

Conference Call

VisionChina's management will hold an earnings conference call at 8:00 PM U.S. Eastern Standard Time on March 2, 2010 (9:00 AM Beijing/Hong Kong Time on March 3, 2010).

    Dial-in details for the earnings conference call are as follows:

    U.S. Toll Free: + 1 800 901 5213
    Hong Kong:      + 852 3002 1672
    International:  + 1 617 786 2962

    Passcode for all regions: VisionChina Earnings Call

A replay of the conference call may be accessed by phone at the following numbers until March 12, 2010.

    U.S. Toll Free: +1 888 286 8010
    International:  +1 617 801 6888
    Passcode:       97580099

Additionally, a live and archived webcast of this conference call will be available on the Investor Relations section of VisionChina Media's website at http://www.visionchina.cn .

About VisionChina Media Inc.

VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways that reaches over 40 million viewers each day in China, according to CTR Market Research. As of January 31, 2010 VisionChina Media's advertising network included 121,053 digital television displays on mass transportation systems in 23 of China's economically prosperous cities, including Beijing, Shanghai, Guangzhou and Shenzhen. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports and other entertainment programming. For more information, please visit http://www.visionchina.cn .

Use of Non-GAAP Financial Measures

In addition to VisionChina Media's consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including non-GAAP net income, excluding non-cash share-based compensation and amortization of intangible assets. The Company believes that the non-GAAP financial measures provide investors with another method for assessing VisionChina Media's operating results in a manner that is focused on the performance of its ongoing operations. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of VisionChina Media's liquidity and when planning and forecasting future periods.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1 and its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

    For investor and media inquiries, please contact:

    In China:

     Mrs. Helen Plummer
     Investor Relations Officer
     VisionChina Media Inc.
     Tel:   +86-139-1167-2124
     Tel:   +1-347-610-3938
     Email: helen.plummer@visionchina.cn

     Mr. Derek Mitchell
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6284
     Email: derek.mitchell@ogilvy.com

    In the United States:

     Ms. Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: jessica.cohen@ogilvy.com



                              VISIONCHINA MEDIA INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Amounts in U.S. dollars)

                                           December    September     December
                                           31, 2009     30, 2009     31, 2008
    ASSETS                               (Unaudited)  (Unaudited)      (Note1)
    Current Assets:
    Cash and cash equivalents            68,834,087  112,655,218  163,248,286
    Restricted cash                      64,368,455           --           --
    Accounts receivable, net             37,050,076   45,898,745   38,296,590
    Amounts due from related parties      4,334,472    4,796,170    5,225,564
    Prepaid expenses and other current
     assets                              10,049,007   11,772,361    9,431,279
    Deferred tax assets                      41,309      152,675      273,325
    Total current assets                184,677,406  175,275,169  216,475,044
    Non-current Assets:
    Fixed assets, net                     9,192,741    9,445,797   10,205,784
    Investments under equity method       6,670,189    6,765,512    7,686,065
    Other investments                     2,660,189    2,660,034    2,276,034
    Long-term prepayments and deposits   65,241,570   22,605,286   21,888,068
    Intangible assets                    11,455,972   11,929,289   14,034,343
    Goodwill                            109,017,669   56,998,947   21,074,229
    Total non-current assets            204,238,330  110,404,865   77,164,523
    TOTAL ASSETS                        388,915,736  285,680,034  293,639,567

    LIABILITIES AND EQUITY
    Current Liabilities:
    Short-term bank loan                 40,800,000           --           --
    Accounts payable                      2,311,224    1,921,132    1,237,262
    Amounts due to related parties          213,029      712,774      786,284
    Consideration payable                47,873,901           --   30,734,610
    Income tax payable                    2,411,156    1,512,307       39,209
    Accrued expenses and other current
     liabilities                          9,326,208    7,270,756    9,507,341
    Total current liabilities           102,935,518   11,416,969   42,304,706
    Non-current Liabilities:
    Long-term bank loan                     731,294           --           --
    Consideration payable                 9,330,085    5,188,296    2,776,173
    Deferred tax liabilities              2,503,125    2,606,638    2,924,073
    Total non-current liabilities        12,564,504    7,794,934    5,700,246
    Total liabilities                   115,500,022   19,211,903   48,004,952

    Equity:
    Common shares                             7,214        7,181        7,182
    Additional paid-in capital          192,362,565  191,036,920  190,694,719
    Accumulated profits                  70,112,299   64,480,405   43,509,296
    Accumulated other comprehensive
     income                              10,499,278   10,479,315   10,862,017
    Total VisionChina Media Inc.
     shareholders' equity               272,981,356  266,003,821  245,073,214
    Non-controlling interest                434,358      464,310      561,401
    Total equity                        273,415,714  266,468,131  245,634,615
    TOTAL LIABILITIES AND EQUITY        388,915,736  285,680,034  293,639,567

    Note1: Information extracted from the audited financial statements
           included in the 2008 Form 20-F of the Company filed with the
           Securities and Exchange Commission on April 6, 2009, as modified
           for the adoption of Statement of Financial Accounting Standards No.
           160 "Non-controlling Interest in Consolidated Financial Statements
           - An amendment of Accounting Research Bulletin No. 51" ("SFAS 160"),
           which resulted in the reclassification of amounts previously
           attributable to minority interest to a separate component of
           shareholders' equity titled "Non-controlling Interest" in the
           condensed consolidated balance sheet.



                              VISIONCHINA MEDIA INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Amounts in thousand U.S. Dollars, except number of shares and per share
                                      data)
                                                 For three months ended
                                             December   September    December
                                             31, 2009    30, 2009    31, 2008
                                           (Unaudited) (Unaudited) (Unaudited)
    Revenues:
    Advertising service revenue                31,829      30,785      34,250
    Total revenues                             31,829      30,785      34,250
    Cost of revenues:
    Advertising service cost                  -17,309     -15,416     -14,592
    Total cost of revenues                    -17,309     -15,416     -14,592
    Gross profit                               14,520      15,369      19,658
    Operating expenses:
    Selling and marketing                      -6,278      -6,356      -4,760
    General and administrative                 -2,154      -1,646      -2,089
    Total operating expenses                   -8,432      -8,002      -6,849
    Government grant                              293         245          --
    Loss from equity method investees             -96        -315          -5
    Operating profit                            6,285       7,297      12,804
    Interest income                               383         380       1,003
    Interest expense                             -110          --          --
    Government grant                               --          --         672
    Other income                                    1          --          --
    Net income before income taxes              6,559       7,677      14,479
    Income tax expenses (benefits)               -957        -515         315
    Net income                                  5,602       7,162      14,794
    Net loss attributable to non-
     controlling interest                          30          24          26
    Net income attributable to VisionChina
     Media Inc. shareholders                    5,632       7,186      14,820

    Net income attributable to VisionChina
     Media Inc. shareholders per share:
    Basic                                        0.08        0.10        0.21
    Diluted                                      0.08        0.10        0.20
    Shares used in computation of net
     income attributable to VisionChina
     Media Inc. shareholders per share:
    Basic                                  71,940,008  71,603,160  72,070,484
    Diluted                                73,024,531  72,487,904  73,275,526

    Share-based compensation expenses
     during the related periods included
     in:
    Cost of revenues                              -33         -13          -9
    Selling and marketing expenses               -690      -1,015        -344
    General and administrative expenses          -166        -160        -142
    Total                                        -889      -1,188        -495

    Reconciliation from GAAP net income
     attributable to VisionChina Media
     Inc. shareholders to Adjusted Non-
     GAAP net income attributable to
     VisionChina Media Inc. shareholders:
    Net income attributable to VisionChina
     Media Inc. shareholders (GAAP)             5,632       7,186      14,820
    Add back share-based compensation
     expenses during the related periods          889       1,188         495
    Add back intangible assets
     amortization expenses during the
     related periods                              691         691         689
    Net income attributable to VisionChina
     Media Inc. shareholders (Non-GAAP)         7,212       9,065      16,004




                             VISIONCHINA MEDIA INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Amounts in thousand U.S. Dollars, except number of shares and per share
                                      data)
                                                  For twelve months ended
                                               December 31,      December 31,
                                                      2009              2008
                                                (Unaudited)           (Note2)
    Revenues:
    Advertising service revenue                    120,686           103,515
    Advertising equipment revenue                       --               565
    Total revenues                                 120,686           104,080
    Cost of revenues:
    Advertising service cost                       -61,104           -40,602
    Advertising equipment cost                          --              -475
    Total cost of revenues                         -61,104           -41,077
    Gross profit                                    59,582            63,003
    Operating expenses:
    Selling and marketing                          -24,621           -14,712
    General and administrative                      -7,425            -5,414
    Total operating expenses                       -32,046           -20,126
    Government grant                                   538                --
    Loss from equity method investees                 -999              -485
    Operating profit                                27,075            42,392
    Interest income                                  1,860             3,480
    Interest expense                                  -110                --
    Government grant                                    --               672
    Other expenses                                      -1               -39
    Net income before income taxes                  28,824            46,505
    Income tax expenses (benefits)                  -2,348               213
    Net income                                      26,476            46,718
    Net loss attributable to non-
     controlling interest                              127                92
    Net income attributable to
     VisionChina Media Inc. shareholders            26,603            46,810

    Net income attributable to
     VisionChina Media Inc. shareholders
     per share:
    Basic                                             0.37              0.67
    Diluted                                           0.37              0.65
    Shares used in computation of net
     income attributable to VisionChina
     Media Inc. shareholders per share:
    Basic                                       71,686,900        70,064,663
    Diluted                                     72,676,438        72,404,916

    Share-based compensation expenses
     during the related periods included
     in:
    Cost of revenues                                   -63               -39
    Selling and marketing expenses                  -3,698            -1,164
    General and administrative expenses               -571              -264
    Total                                           -4,332            -1,467

    Reconciliation from GAAP net income
     attributable to VisionChina Media
     Inc. shareholders to Adjusted Non-
     GAAP net income attributable to
     VisionChina Media Inc. shareholders:
    Net income attributable to
     VisionChina Media Inc. shareholders
     (GAAP)                                         26,603            46,810
    Add back share-based compensation
     expenses during the related periods             4,332             1,467
    Add back intangible assets
     amortization expenses during the
     related periods                                 2,761             1,660
    Net income attributable to
     VisionChina Media Inc. shareholders
     (Non-GAAP)                                     33,696            49,937

    Note2: Information extracted from the audited financial statements
           included in the 2008 Form 20-F of the Company filed with the
           Securities and Exchange Commission on April 6, 2009, as modified
           for the adoption of SFAS 160, which resulted in the disclosure of
           net loss previously attributable to minority interest separately
           from the net income in the condensed consolidated statements of
           operations.

SOURCE VisionChina Media Inc.