FAB Universal Revenues Up 109% for Third Quarter
PITTSBURGH--(BUSINESS WIRE)-- FAB Universal (NYSE MKT: FU), a worldwide distributor of digital entertainment, today announced financial results for the third quarter ending September 30, 2012.
Total revenue for the third quarter was $1,745,015 compared with $834,065 in the third quarter of 2011, an increase of 109%. FAB Universal achieved a gross profit of $960,789 for the third quarter of 2012, versus a gross profit of $527,607 in the third quarter of 2011, an increase of 82%.
The third quarter results were highlighted by a strong performance by FAB Universal's Podcasting business which grew revenues 45%. Overall Media revenues were up 178% in large part due to the inclusion of 4 days of revenues from our acquisition of Digital Entertainment Intl ("FAB").
Operating expenses totaled $5,744,877, a 436% increase from operating expenses of $1,070,904 in the third quarter of 2011. The increase is due to acquisition related costs, one time non-cash expenses related to issuing stock, and other non-cash expenses. Non-cash expenses alone were $4.3 million of the overall expenses. The majority of these expenses were related to the FAB acquisition and are non reoccurring.
Net loss available to common shareholders, including non-cash and acquisition related expenses, was $4,951,273 or $0.51 per share, in the quarter ended September 30, 2012.
"In the third quarter of 2012, FAB Universal closed its acquisition of Digital Entertainment Intl becoming a $75,000,000+ million dollar annual revenue company, says Chris Spencer, FAB Universal CEO. "We spun off our healthcare operations to shareholders subsequent to the end of the third quarter and we grew our revenues substantially. It was a very busy, productive and successful quarter. We expect the next several quarters will be just as productive and successful as well."
The previously mentioned numbers and statements are highlights from FAB Universal's 2012 third quarter 10Q filing. For a complete and detailed financial description of FAB Universal Corp, please visit www.sec.gov, where all of FAB Universal's SEC filings can be found.
About FAB Universal Corp:
FAB Universal Corp. is a global leader in digital media entertainment sales and distribution. FAB delivers media to its customers worldwide through Intelligent Kiosks, Retail Stores, Retail Licensing and online through Apple iTunes and Google Android through three business units: Digital Media Services, Retail Media Sales and Wholesale Media Distribution. We distribute billions of movie, music, podcast, TV show and other digital files to consumers in 240 countries. Sales of digital media are generated through kiosks networks, subscription sales for mobile devices, smartphone Apps and Netflix-like subscription models. In 2011, we distributed billions of downloads of copyrighted music, video games, ringtones, ebooks, movies and podcasts to over 50 million people worldwide through iPods, iPhones, iPads, iTunes, Blackberrys, Windows Phones, Androids and many other devices and destinations. We are a publicly held, Pittsburgh based company with thousands of shareholders and a world-class team. Visit us on the web at www.fabuniversal.com, email us at firstname.lastname@example.org.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies and acts of terror against the United States.
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