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VLOV Inc posts Q3 financial results
16 Nov '10
6 min read
Selling Expenses - Third quarter 2010 selling and advertising expense totaled $1.4 million, or 10.7% of sales, compared to $0.8 million, or 6.1% of sales in the third quarter of 2009. Selling expenses increased in the quarter as a result of branding marketing and advertising expenses Selling and advertising expense for the first nine months of 2010 totaled $5.4 million, or 11.1% of sales, compared to $2.9 million, or 6.3% of sales in the comparable 2009 period.
For the nine months ended September 30, 2010, the increase was due to our expenses associated with the Fall 2010 preview held in May 2010 and increased advertising costs. In order to increase our brand image and awareness, the Company anticipates that selling expenses will continue to increase in absolute dollars as well as a percentage of sales.
General and Administrative Expenses - General and administrative expenses for third quarter 2010 was $0.7 million, or 5.4% of sales, as compared to $0.5 million, or 3.7% of sales in the comparable 2009 period. For the first nine months of 2010, general and administrative expenses totaled $2.6 million as compared to $1.6 million a year ago, reflecting higher expenses related to operating as a U.S. publicly traded company and $0.4 million in liquidated damages accrued for the nine months ended September 30, 2010 as a result of not having an effective registration statement registering common and preferred shares as well as common shares underlying warrants issued in connection with our fourth quarter 2009 financings. As we continue to further improve our operating infrastructure and incur expenses related to being a U.S. publicly traded company, we anticipate that our general and administrative expenses will continue to increase in absolute dollars as well as a percentage of total revenues.
Derivative Liability - During the three and nine months ended September 30, 2010, the Company recorded gains of $992,000 and $817,000, respectively, related to the fair value of the warrants issued in financings completed in October, November and December 2009. In future periods, we may experience significant gains or losses, as the value of these warrants may fluctuate in response to changes in our stock price.
Operating Income - Income from operations in the third quarter of 2010 was $3.3 million compared to $3.7 million in the third quarter of 2009. For the nine months ended September 30, 2010, operating income was $11.1 million, as compared to $12.0 million for the same period in 2009.
Net Income - Net income in the third quarter of 2010 was $3.4 million or $0.18 per diluted share, versus $2.7 million, or $0.17 per diluted share, in the comparable period of 2009. Net income for the nine months ended September 30, 2010 was $9.0 million, or $0.47 per diluted share, versus $8.8 million, or $0.56 per diluted share, for the same nine month period in 2009.
For the nine months ended September 30, 2010, the increase was due to our expenses associated with the Fall 2010 preview held in May 2010 and increased advertising costs. In order to increase our brand image and awareness, the Company anticipates that selling expenses will continue to increase in absolute dollars as well as a percentage of sales.
General and Administrative Expenses - General and administrative expenses for third quarter 2010 was $0.7 million, or 5.4% of sales, as compared to $0.5 million, or 3.7% of sales in the comparable 2009 period. For the first nine months of 2010, general and administrative expenses totaled $2.6 million as compared to $1.6 million a year ago, reflecting higher expenses related to operating as a U.S. publicly traded company and $0.4 million in liquidated damages accrued for the nine months ended September 30, 2010 as a result of not having an effective registration statement registering common and preferred shares as well as common shares underlying warrants issued in connection with our fourth quarter 2009 financings. As we continue to further improve our operating infrastructure and incur expenses related to being a U.S. publicly traded company, we anticipate that our general and administrative expenses will continue to increase in absolute dollars as well as a percentage of total revenues.
Derivative Liability - During the three and nine months ended September 30, 2010, the Company recorded gains of $992,000 and $817,000, respectively, related to the fair value of the warrants issued in financings completed in October, November and December 2009. In future periods, we may experience significant gains or losses, as the value of these warrants may fluctuate in response to changes in our stock price.
Operating Income - Income from operations in the third quarter of 2010 was $3.3 million compared to $3.7 million in the third quarter of 2009. For the nine months ended September 30, 2010, operating income was $11.1 million, as compared to $12.0 million for the same period in 2009.
Net Income - Net income in the third quarter of 2010 was $3.4 million or $0.18 per diluted share, versus $2.7 million, or $0.17 per diluted share, in the comparable period of 2009. Net income for the nine months ended September 30, 2010 was $9.0 million, or $0.47 per diluted share, versus $8.8 million, or $0.56 per diluted share, for the same nine month period in 2009.
VLOV Inc
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