China Networks (OTC BB:CNWHF)

BEIJING, July 21, 2011 (GLOBE NEWSWIRE) -- China Networks International Holdings Ltd ("China Networks" or the "Company") (OTCBB:CNWHF), a leading and exclusive operator of television advertising networks in the People's Republic of China, announced today its financial results for the second half and full year ended December 31, 2010.

Fourth Quarter 2010 Highlights:

• Revenues of $0.91 million (Excluding discontinued operations)
• US GAAP net loss of $8.53 million
• Adjusted net loss of $0.07 million or $0.001 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $0.09 million

Third Quarter 2010 Highlights:

• Revenues of $0.84 million (Excluding discontinued operations)
• US GAAP net loss of $0.25 million
• Adjusted net loss of $0.81 million or $0.014 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $0.81 million

Year Ended December 31, 2010 Highlights:

• Consolidated revenues were $3.75 million, down 11% compared to $4.21 million for the year ended December 31, 2009 (Excluding discontinued operations)
• US GAAP net loss was $3.07 million, compared to a net loss of $1.67 million for the year ended December 31, 2009
• Adjusted net loss of $2.41 million or $0.04 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $2.7 million
• In December 2010, the Company disposed of its investments in Kunming Taishi Information Cartoon Co., Ltd ("Kunming JV") and Kunming Kaishi Advertising Co., Ltd. ("Kunming Ad Co.") to its PRC Joint Venture partner
• Income from discontinued operations was $4.15 million (2009: $7.25 million) (Excluding loss on disposal of subsidiaries)
• Loss on disposal of the investments in Kunming JV and Kunming Ad Co was $7.56 million to the Group.

Total common shares outstanding as of September 30 and December 31, 2010 was 41,019,998. Total adjusted shares outstanding as of September 30 and December 31, 2010 was 57,019,998. See "About Non-GAAP Financial Measures" below.

Commenting on the Company's second half of 2010 results, the Company's Chairman and Chief Executive Officer, Mr. Shuangqing Li, said, "It's been a very eventful year overall. We were approached by our joint venture partners in Kunming regarding the repurchase of the assets given their interest to consolidate the media television advertising landscape. Since then, we have utilized these funds to clean up our debt structure and redeem all outstanding convertible notes and a portion of our outstanding preferred shares. Our focus for 2011 will be to continue to seek out business opportunities that would generate higher returns for our shareholders."

Second Quarter 2010 Highlights:

• Revenues of $5.1 million 

• US GAAP net income of $13 million 

• Adjusted net income of $0.8 million or $0.02 per common share based on 41,019,998 shares 

• Adjusted EBITDA of $1.1 million

First Quarter 2010 Highlights:

• Revenues of $5.1 million 

• US GAAP net income of $0.1 million 

• Adjusted net income of $1.0 million or $0.02 per common share based on 41,019,998 shares 

• Adjusted EBITDA of $1.3 million

Commenting on the Company's financial results, the Company's Chairman and Chief Executive Officer, Mr. Shuangqing Li, said, "Our current progress this year has reinforced our expectations and optimism in the future and profitability of China's advertising markets. Our performance for the first six months exceeded our expectations as compared to the first six months of 2009. China Networks is poised for significant organic growth as the demand for our services, advertising budgets, and subscriber revenues continue to grow. We expect to focus on generating higher margins and are in discussions with other networks in tier 2 and tier 3 cities with attractive valuations that can further enhance our revenue streams. This year we witnessed the recovery of China's advertising market and as a result we are gaining better traction in capturing the increases and revenue opportunities with our network partners. We are confident that we can meet our targeted guidance for the year and remain on track for generating continued growth."

Management's Outlook

For the full year 2010, China Networks reiterates its guidance estimates for adjusted EBITDA to be between $5.9-$6.2 million as announced in its fiscal year financial results ending December 31, 2009.

The company noted that its guidance is based on the current networks of two equity joint ventures with PRC TV stations that, as of the release date, have already been secured by contracts. If and when more TV stations are added to the operation networks or other adjustments are made, management's forecast will be impacted.