RTB Digital (RTB) Q2 2015 earnings summary

Executive summary

• Q2 revenue rose to $330,000 from $269,500 YoY; net income was $78,957 versus a $16,087 loss. H1 net income reached $171,121, up from $61,273.

• Hospitality real estate advisory and asset management remained the core activities, serving Chinese institutions and high-net-worth individuals seeking U.S. hotel services.

Financial highlights

• H1 revenue was $781,418 versus $882,125 YoY; consulting fees were $781,418 versus $881,500, while commission income was $0 versus $625.

• H1 gross profit was $459,418 versus $433,625; operating income was $258,883 versus $196,596.

• Q2 gross profit was $244,000 versus $112,000; operating income was $114,990 versus $60,924.

• H1 operating cash flow was $307,227 versus $143,173; cash at June 30 was $83,107, up from $41,420 at year-end.

Outlook and guidance

• Management expected revenue from real estate transactions and continuing major-shareholder note support to sustain operations for the next 12 months.

• Growth plans rely on internally generated funds and potential debt or equity financing; no commitments for planned capital investments had been received, and funding could increase liquidity risk.

• No FY2015 capital expenditure commitments; business plans focused on real estate transactions and expanding the client base.