Bona Film Group Ltd

CIK:0001504796|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net revenues	$ 254,086us-gaap_Revenues	$ 149,336us-gaap_Revenues	$ 142,283us-gaap_Revenues
Cost of revenues	141,298us-gaap_CostOfRevenue	82,839us-gaap_CostOfRevenue	86,085us-gaap_CostOfRevenue
Gross profit	112,788us-gaap_GrossProfit	66,497us-gaap_GrossProfit	56,198us-gaap_GrossProfit
Operating expenses:
Film participation expenses	12,247bona_ParticipationExpense	(1,319)bona_ParticipationExpense	439bona_ParticipationExpense
Selling and marketing expenses	31,528us-gaap_SellingAndMarketingExpense	14,373us-gaap_SellingAndMarketingExpense	18,490us-gaap_SellingAndMarketingExpense
General and administrative expenses	63,321us-gaap_GeneralAndAdministrativeExpense	49,854us-gaap_GeneralAndAdministrativeExpense	41,890us-gaap_GeneralAndAdministrativeExpense
Total operating expenses	107,096us-gaap_OperatingExpenses	62,908us-gaap_OperatingExpenses	60,819us-gaap_OperatingExpenses
Equity in earnings of equity method investments, net of tax	3,350
Government subsidies	5,978us-gaap_RevenueFromGrants	5,022us-gaap_RevenueFromGrants	3,867us-gaap_RevenueFromGrants
Operating income	15,020us-gaap_OperatingIncomeLoss	8,611us-gaap_OperatingIncomeLoss	(754)us-gaap_OperatingIncomeLoss
Other income (expense):
Interest income from bank deposits	1,318us-gaap_InvestmentIncomeInterest	281us-gaap_InvestmentIncomeInterest	246us-gaap_InvestmentIncomeInterest
Interest income from loan to a producer of TV series	41us-gaap_InterestAndFeeIncomeOtherLoans
Interest expenses	(1,830)us-gaap_InterestExpense	(1,381)us-gaap_InterestExpense	(399)us-gaap_InterestExpense
Exchange gain (loss)	(1,589)	1,780	373
Gain (Loss) on Sale of Investments			(6)us-gaap_GainLossOnSaleOfInvestments
Investment Income	64us-gaap_InvestmentIncomeDividend
Other income	284us-gaap_OtherNonoperatingIncome	284us-gaap_OtherNonoperatingIncome	288us-gaap_OtherNonoperatingIncome
Income (loss) before income tax and equity in earnings of equity method investments, net of tax	13,308	9,575	(252)
Provision for income taxes	7,467us-gaap_IncomeTaxExpenseBenefit	5,129us-gaap_IncomeTaxExpenseBenefit	1,322us-gaap_IncomeTaxExpenseBenefit
Equity in earnings of equity method investments, net of tax		78	6
Net income	5,841us-gaap_ProfitLoss	4,524us-gaap_ProfitLoss	(1,568)us-gaap_ProfitLoss
Less: Net loss attributable to noncontrolling interests	(557)	(1,133)	(284)
Net income attributable to Bona Film Group Limited	6,398us-gaap_NetIncomeLoss	5,657us-gaap_NetIncomeLoss	(1,284)us-gaap_NetIncomeLoss
Net income (loss) per ordinary share
Basic (in dollars per share)	$ 0.21us-gaap_EarningsPerShareBasic	$ 0.19us-gaap_EarningsPerShareBasic	$ (0.04)us-gaap_EarningsPerShareBasic
Diluted (in dollars per share)	$ 0.20us-gaap_EarningsPerShareDiluted	$ 0.19us-gaap_EarningsPerShareDiluted	$ (0.04)us-gaap_EarningsPerShareDiluted
Weighted average shares used in calculating net income (loss) per ordinary share
Basic (in shares)	30,367,511	29,870,809	29,514,979
Diluted (in shares)	31,928,201	30,436,728	29,514,979
Share-based compensation expenses
Share-based compensation	11,091us-gaap_ShareBasedCompensation	3,958us-gaap_ShareBasedCompensation	4,803us-gaap_ShareBasedCompensation
General and administrative expenses
Share-based compensation expenses
Share-based compensation	$ 11,091	$ 3,958	$ 4,803

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net (loss) income	$ 5,841us-gaap_ProfitLoss	$ 4,524us-gaap_ProfitLoss	$ (1,568)us-gaap_ProfitLoss
Adjustments to reconcile net (loss) income to net cash used in operating activities
Equity in earnings of equity method investments, net of tax	(3,350)	(78)	(6)
Loss on disposal of an equity method investment			6us-gaap_GainLossOnSaleOfInvestments
Share-based compensation expenses	11,091us-gaap_ShareBasedCompensation	3,958us-gaap_ShareBasedCompensation	4,803us-gaap_ShareBasedCompensation
Allowance for doubtful accounts	1,741us-gaap_ProvisionForDoubtfulAccounts	336us-gaap_ProvisionForDoubtfulAccounts	33us-gaap_ProvisionForDoubtfulAccounts
Investment income	(64)
Other income	(284)us-gaap_OtherNoncashIncomeExpense	(284)us-gaap_OtherNoncashIncomeExpense	(288)us-gaap_OtherNoncashIncomeExpense
Depreciation and amortization	5,546	5,724	4,371
Loss from disposal of property and equipment	32	70	2
Amortization of distribution rights	27,360bona_AmortizationOfDistributionRights	15,289bona_AmortizationOfDistributionRights	2,793bona_AmortizationOfDistributionRights
Amortization of production costs	56,164	27,474	41,774
Impairment of production costs and distribution rights	4,348	3,168	2,280
Changes in assets and liabilities:
Accounts receivable	(34,386)	1,891	1,543
Prepaid expenses and other current assets	(635)	7,059	1,163
Long-term prepaid expenses	(41)
Distribution rights	(27,605)	(11,348)	(9,731)
Production costs	(89,037)us-gaap_IncreaseDecreaseInFilmCosts1	(77,563)us-gaap_IncreaseDecreaseInFilmCosts1	(64,759)us-gaap_IncreaseDecreaseInFilmCosts1
Return on an equity-method investment	1,579
Inventories	(73)us-gaap_IncreaseDecreaseInInventories	(27)us-gaap_IncreaseDecreaseInInventories	(45)us-gaap_IncreaseDecreaseInInventories
Amounts due from related parties	238	(164)	47
Accounts payable	9,415	(8,672)	4,049
Deferred income	199	822	42
Accrued expenses and other current liabilities	19,478	3,378	3,021
Amounts due to related parties	185	878	579
Income taxes payable	5,443	3,932	1,588
Deferred income taxes	(1,060)	(360)	(1,147)
Film participation financing liabilities	4,824	(1,562)	(15)
Net cash used in operating activities	(3,051)	(21,555)	(9,465)
Cash flows from investing activities:
Acquisition of an equity method investee, net of cash acquired of $1,599, as of December 31, 2014	1,599
Purchase of property and equipment	(24,305)	(9,662)	(17,583)
Purchase of Cost Method Investment		(180)bona_PurchaseOfCostMethodInvestment
Disposal of an equity method investment			55
Purchase of equity method investments	(12,037)	(25,893)
Distribution from an equity method investment	4,064
Loan to a producer of TV series	(1,217)
Dividends received	64
Amounts loaned to third parties			(90)
Maturity of term deposits			6,038
Deposits of restricted cash	(26,711)	(25,586)	(600)
Net cash used in investing activities	(58,543)	(61,321)	(12,180)
Cash flows from financing activities:
Proceeds from exercise of options	2,067	2,498	1,823
Payment of deferred consideration for acquisition of business			(2,378)us-gaap_PaymentsForPreviousAcquisition
Amount due to related parties and third parties	472	(880)	2,010
Proceeds from bank borrowings	107,436us-gaap_ProceedsFromBankDebt	67,511us-gaap_ProceedsFromBankDebt	38,975us-gaap_ProceedsFromBankDebt
Repayments of bank borrowings	(35,400)us-gaap_RepaymentsOfBankDebt	(18,203)us-gaap_RepaymentsOfBankDebt	(21,142)us-gaap_RepaymentsOfBankDebt
Proceeds from film participation with unrelated parties	12,639bona_ProceedsFromFilmParticipation		293bona_ProceedsFromFilmParticipation
Proceeds from film participation with a related party	54,489	53,820
Repayments of film participation financing liabilities principal with unrelated parties	(5,276)	(6,681)	(1,511)
Repayment of film participation financing liabilities principal with a related party	(13,330)
Proceeds from other borrowings	4,615us-gaap_ProceedsFromOtherDebt	2,314us-gaap_ProceedsFromOtherDebt	6,150us-gaap_ProceedsFromOtherDebt
Repayments of other borrowings	(1,475)us-gaap_RepaymentsOfOtherDebt	(6,699)us-gaap_RepaymentsOfOtherDebt
Capital contribution by noncontrolling interests holders		48	774
Acquisition of noncontrolling interests		(726)
Net cash provided by financing activities	126,237	93,002	24,994
Effect of foreign exchange rate changes	(156)	(670)	(228)
Net (decrease) increase in cash	64,487	9,456	3,121
Cash and cash equivalents, beginning of year	32,684	23,228	20,107
Cash and cash equivalents, end of year	97,171	32,684	23,228
Supplement disclosure of cash flow information
Income taxes paid	3,089us-gaap_IncomeTaxesPaid	1,664us-gaap_IncomeTaxesPaid	731us-gaap_IncomeTaxesPaid
Interests paid	5,927us-gaap_InterestPaid	3,428us-gaap_InterestPaid	967us-gaap_InterestPaid
Film participation expenses paid	6,912bona_FilmParticipationExpensesPaid	242bona_FilmParticipationExpensesPaid	132bona_FilmParticipationExpensesPaid
Supplement disclosure of non-cash investing activities:
Payable for purchase of property and equipment	$ 4,324	$ 6,145	$ 8,843

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 97,171	$ 32,684
Restricted cash	56,473	30,728
Accounts receivable, net of allowance for doubtful accounts of $930 and $962 as of December 31, 2013 and 2014, respectively	72,680us-gaap_AccountsReceivableNetCurrent	39,409us-gaap_AccountsReceivableNetCurrent
Prepaid expenses and other current assets	23,691	17,326
Amounts due from related parties	269us-gaap_DueFromRelatedPartiesCurrent	510us-gaap_DueFromRelatedPartiesCurrent
Current deferred tax assets	1,564	973
Inventories	377us-gaap_InventoryNet	313us-gaap_InventoryNet
Total current assets	252,225us-gaap_AssetsCurrent	121,943us-gaap_AssetsCurrent
Distribution rights	6,546bona_DistributionRights	6,554bona_DistributionRights
Production costs	168,475us-gaap_FilmCosts	142,245us-gaap_FilmCosts
Prepaid film costs	4,407	4,406
Property and equipment, net	75,716us-gaap_PropertyPlantAndEquipmentNet	63,679us-gaap_PropertyPlantAndEquipmentNet
Acquired intangible assets, net	2,346	2,452
Non-current deferred tax assets	918	510
Cost method investments	1,477us-gaap_CostMethodInvestments	1,479us-gaap_CostMethodInvestments
Equity method investments	34,622us-gaap_EquityMethodInvestments	26,278us-gaap_EquityMethodInvestments
Goodwill	49,312us-gaap_Goodwill	50,540us-gaap_Goodwill
Long-term prepaid expenses	34us-gaap_PrepaidExpenseNoncurrent
Total assets	596,078us-gaap_Assets	420,086us-gaap_Assets
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $22,913 and $29,882 as of December 31, 2013 and 2014, respectively)	31,592us-gaap_AccountsPayableCurrent	24,540us-gaap_AccountsPayableCurrent
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $29,639 and $46,699 as of December 31, 2013 and 2014, respectively)	50,686	32,635
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $5,201 and $6,995 as of December 31, 2013 and 2014, respectively)	8,373us-gaap_DueToRelatedPartiesCurrent	5,886us-gaap_DueToRelatedPartiesCurrent
Income tax payable (including income tax payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $6,460 and $11,734 as of December 31, 2013 and 2014, respectively)	11,702us-gaap_AccruedIncomeTaxesCurrent	6,460us-gaap_AccruedIncomeTaxesCurrent
Bank borrowings (including bank borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of $35,425 and $54,277 as of December 31, 2013 and 2014, respectively)	127,293	60,704
Other borrowings (including other borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of $4,126 and $7,304 as of December 31, 2013 and 2014, respectively)	7,304us-gaap_OtherShortTermBorrowings	4,126us-gaap_OtherShortTermBorrowings
Current film participation financing liabilities with unrelated parties (including current film participation financing liabilities with unrelated parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $7,038 and $13,063 as of December 31, 2013 and 2014, respectively)	13,251	7,117
Current film participation financing liabilities with a related party (including current film participations financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $36,705 and $84,033 as of December 31, 2013 and 2014, respectively)	84,033	36,705
Total current liabilities	334,234us-gaap_LiabilitiesCurrent	178,173us-gaap_LiabilitiesCurrent
Bank borrowings (including bank borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of nil and $24,227 as of December 31, 2013 and 2014, respectively)	24,227us-gaap_LongTermLoansFromBank	20,000us-gaap_LongTermLoansFromBank
Deferred income (including deferred income of the consolidated variable interest entities without recourse to Bona Film Group Limited of $873 and $1,049 as of December 31, 2013 and 2014, respectively)	1,249us-gaap_DeferredRevenueNoncurrent	1,359us-gaap_DeferredRevenueNoncurrent
Noncurrent film participation financing liabilities with an related party (including current film participation financing liabilities with an unrelated party of the consolidated variable interest entities without recourse to Bona Film Group Limited of nil and $1,990 as of December 31, 2013 and 2014, respectively)	1,990
Non-current film participation financing liabilities with a related party (including current film participation financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $17,675 and $14,667 as of December 31, 2013 and 2014, respectively	14,667	17,675
Noncurrent deferred tax liabilities (including noncurrent deferred tax liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $23 and nil as of December 31, 2013 and 2014, respectively)		23
Total liabilities	376,367us-gaap_Liabilities	217,230us-gaap_Liabilities
Commitments and contingencies (Note 25)
Equity
Bona Film Group Limited's ordinary shares ( $0.0005 par value; 85,000,000 shares authorized, 31,402,346 and 30,160,235 shares issued and outstanding as of December 31, 2013 and 31,402,346 and 30,496,848 shares issued and outstanding as of December 31, 2014)	15us-gaap_CommonStockValue	15us-gaap_CommonStockValue
Additional paid-in capital	195,976us-gaap_AdditionalPaidInCapital	182,782us-gaap_AdditionalPaidInCapital
Statutory reserves	3,704	3,534
Accumulated profit	11,445	5,217
Accumulated other comprehensive income	6,532	9,512
Total Bona Film Group Limited's equity	217,672us-gaap_StockholdersEquity	201,060us-gaap_StockholdersEquity
Noncontrolling interests	2,039us-gaap_MinorityInterest	1,796us-gaap_MinorityInterest
Total equity	219,711	202,856
Total liabilities and equity	596,078	420,086
Consolidated variable interest entities without recourse
Current assets
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $22,913 and $29,882 as of December 31, 2013 and 2014, respectively)	29,882	22,913
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $29,639 and $46,699 as of December 31, 2013 and 2014, respectively)	46,699	29,639
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $5,201 and $6,995 as of December 31, 2013 and 2014, respectively)	6,995	5,201
Income tax payable (including income tax payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $6,460 and $11,734 as of December 31, 2013 and 2014, respectively)	11,734	6,460
Bank borrowings (including bank borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of $35,425 and $54,277 as of December 31, 2013 and 2014, respectively)	54,277	35,425
Other borrowings (including other borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of $4,126 and $7,304 as of December 31, 2013 and 2014, respectively)	7,304	4,126
Current film participation financing liabilities with unrelated parties (including current film participation financing liabilities with unrelated parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $7,038 and $13,063 as of December 31, 2013 and 2014, respectively)	13,063	7,038
Current film participation financing liabilities with a related party (including current film participations financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $36,705 and $84,033 as of December 31, 2013 and 2014, respectively)	84,033	36,705
Bank borrowings (including bank borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of nil and $24,227 as of December 31, 2013 and 2014, respectively)	24,227	0
Deferred income (including deferred income of the consolidated variable interest entities without recourse to Bona Film Group Limited of $873 and $1,049 as of December 31, 2013 and 2014, respectively)	1,049	873
Noncurrent film participation financing liabilities with an related party (including current film participation financing liabilities with an unrelated party of the consolidated variable interest entities without recourse to Bona Film Group Limited of nil and $1,990 as of December 31, 2013 and 2014, respectively)	1,990	0
Non-current film participation financing liabilities with a related party (including current film participation financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $17,675 and $14,667 as of December 31, 2013 and 2014, respectively	14,667	17,675
Noncurrent deferred tax liabilities (including noncurrent deferred tax liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $23 and nil as of December 31, 2013 and 2014, respectively)	$ 0	$ 23