China Tracker - Details for China Internet Cafe Holdings (CICC)

 China Internet Cafe Holdings
Shares Outstanding (MRQ): 21.12 mill
New Shares / Dilution (TTM): 2.12 mill11.18% 
Cash (MRQ): 15.24 mill128.81%
Account Receivables (MRQ): 0.00 mill0.01%
Account Receivables (Q/Q): 0.00 mill0.00% 
Long-Term Debt (MRQ): NO DEBT
Revenue Growth (Q/Q): 2.72% 
Revenue Growth (Y/Y): 74.40%
Net Income Growth (Q/Q): -19.52% 
Net Income Growth (Y/Y): 6.56% 
EPS Growth (Y/Y): -4.16%
Net Margin (Q/Q): 19.0% (24.3%)-5.30% 
Net Margin (Y/Y): 19.0% (31.1%)-12.10% 
EPS | P/E (2 MRQ Projection): $0.262.14
CFPS | P/CF (2 MRQ Projection): $0.351.60
Price/Sales (2 MRQ Projection): 0.46
Price/Book (MRQ): 0.89
Auditor: EFP Rotenberg
 
 Forward Projections (Fiscal Year)
EPS | P/E (Estimates updated 2011-05-24): $0.252.24
 Basic Facts and History (show more)
Reporting Type: U.S. Company (10-K Filings) 
Going Public: Reverse Merger on 2010-07-02 

 Business Outlook

Management is actively evaluating potential acquisitions outside Shenzhen in order to expand its geographic footprint and to eventually secure a national internet cafe license. The Company will follow a strict set of criteria for all acquisition candidates in order to maximize returns to shareholders. The Company believes it will consummate a transaction by fall 2011.

(Source: PR Newswire, 2011-08-16)

Management is actively evaluating potential acquisitions outside Shenzhen in order to expand its geographic footprint and to eventually secure a national internet cafe license. The Company will follow a strict set of criteria for all acquisition candidates in order to maximize returns to shareholders. The Company believes it will consummate a transaction by September 2011.

(Source: PR Newswire, 2011-05-24)

In 2011 the China Internet Cafe will focus on organic growth of its owned and operated ("O&O") internet cafe outlets as it continues to expand its presence in Shenzhen, where population growth and the influx of migrant workers are expected to continue. CICC opened 16 new cafes in 2010, and increase of 57% from 28 in 2009. The average capital expenditures per cafe in 2010 were $0.25 million and are consistent with the strategy to open more high-end cafes with a larger number of total seats. With average revenue per store of $0.52 million per year and a 28% net margin, the average payback period is 1.5 to 2 years.

During the first quarter of 2011, the Company opened four new locations. During the second quarter of 2011, management expects to add seven new cafes. This includes a mix between small and large depending on the demographics surrounding each location. The Company plans to drive same store sales by offering new loyalty programs such as online gaming competition and focusing on increasing the availability of high quality value-added content such movies, TV shows and video games. In 2011, a credit rewards program will allow loyal customers to earn extra gaming time and encourage credit consumption. For example, customers using 300-499 credits within a month will receive a 5% credit back the following month. New cafes will be outfitted with private rooms with surround sound, equipped movie screening areas, and team gaming and tournament play areas with LCD screens for spectator viewing to drive incremental revenue and increase the average revenue per user.

Management is currently evaluating acquisitions outside Shenzhen in order to expand its geographic footprint and to eventually secure a national internet cafe license. The Company continues to carry out stringent due diligence on potential targets, with a disciplined focus on accretive opportunities. As such, management is confident it will consummate a transaction before the beginning of September 2011.

Beginning in the second half of 2011 China Internet Cafe plans to launch a unique franchise model which will leverage the company's operating expertise. The franchisee will have no up-front costs aside from the build-out, will own the cafe and receive 60% of annual income. China Internet Cafe will grant the franchisee the right to use CICC's internet cafe operating license and Junlong brand, assist the franchisee with securing the appropriate store location, train the management team, and assist with implementing all operating and finance software in exchange for 40% of each franchise store's net income.

(Source: PR Newswire, 2011-03-31)

    see all Business Outlook notes

 Investor Presentations
2010-05-08 (HTML)   VIEW
CICC
Retail/Consumer
SCORE
13
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SAFETY/RISK SCORE
HIGH RISK
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Current Price:  $0.56
F10k Day (2011-02-23): -60.00%$1.40
2010 Close: -30.00%$0.80
2011 Close: 27.27%$0.44
High (2012-04-05): -28.21%$0.78
Low (2012-07-18): 115.38%$0.26
Exchange: PNK
Market Capitalization: 11.83 mill
Total Shares: 21.12 mill
Float: 2,615,000.00 mill
Avg Volume: n/a
Last Quarter: 2011-03-31
Revenue (MRQ): 6.49 mill
Net Income (MRQ): 1.23 mill
Op. Cash Flow (MRQ): 3.88 mill
all financial data provided without warranty