BEIJING, May 18 /PRNewswire-Asia-FirstCall/ -- AirMedia Group Inc.
(NASDAQ: AMCN), a leading operator of out-of-home advertising
platforms in China targeting mid-to-high-end consumers, today
announced its unaudited financial results for the first quarter
ended March 31, 2009. First Quarter 2009 Financial and Business
Highlights -- Total revenues increased by 51.8% year-over-year to
US$32.8 million. -- Net loss was US$1.3 million. Both basic and
diluted loss per ADS were US$0.02. -- Adjusted net income
(non-GAAP), which is net income excluding share-based compensation
expenses and amortization of acquired intangible assets, decreased
by 93.2% year-over-year to US$577,000. -- Both adjusted basic and
diluted net income per ADS (non-GAAP) were US$0.02. -- Became a
leading operator of traditional media platforms in Beijing and
Shenzhen airports "We are extremely excited about the recent
advancements in our network expansion both within and outside of
the air travel sector," said Herman Guo, chairman and chief
executive officer of AirMedia. "In airports, in addition to the
continued expansion of our digital media network, we are proud to
report that we became a leading operator of traditional media
platforms in Beijing and Shenzhen airports during the first quarter
of 2009. Outside of the air travel sector, we successfully captured
the opportunity to establish another national-scale media network
targeting mid-to-high-end consumers by entering into an exclusive
concession rights contract to develop and operate outdoor
advertising platforms at Sinopec's service stations located
throughout China. The synergy in the customer base and operating
experiences between our existing and new business lines will enable
us to establish another sizable and scalable revenue source." Mr.
Guo continued, "These strategic expansions are critical for
achieving our near-term goal of being a leading operator of
out-of-home advertising platforms in China targeting
mid-to-high-end consumers. We believe our endeavors in building one
of the most powerful out-of-home advertising networks in China
during the economic downturn will return tremendous commercial
benefits in the long run." Conor Yang, AirMedia's chief financial
officer, added, "We have always been very cautious in selecting
network expansion opportunities. We believe that our recent
obtained concession rights for traditional media platforms in the
air travel sector and at Sinopec's service stations will prove to
be very effective and efficient business expansions. The additional
concession fees will post short-term pressure on the margins before
sales can ramp up. However, we are supported by a strong balance
sheet and we have received positive feedbacks from advertisers who
appreciate the enhanced target consumer reach of our expanded
network. We believe these new product lines will become company's
important revenue sources and be accretive to our profit growth
after operations for several quarters." Financial Results Revenues
Total revenues by product line (numbers in US$ 000's except for
packages) Quarter Quarter Ended % of Ended % of March 31, Total
December Total 2009 Revenues 31, 2008 Revenues Digital frames
12,049 36.8% 17,231 42.6% Digital TV screens in airports 12,233
37.3% 11,388 28.1% Digital TV screens on airplanes 2,826 8.6% 4,123
10.2% Traditional media in airports 3,994 12.2% 4,258 10.5% Other
displays 1,684 5.1% 3,462 8.6% Total revenues 32,786 100.0% 40,462
100.0% Net revenues 31,702 38,190 Quarter Ended % of Y/Y Q/Q March
31, Total Growth Growth 2008 Revenues rate rate Digital frames
6,706 31.1% 79.7% -30.1% Digital TV screens in airports 9,981 46.2%
22.6% 7.4% Digital TV screens on airplanes 3,881 18.0% -27.2%
-31.5% Traditional media in airports 154 0.7% 2493.5% -6.2% Other
displays 874 4.0% 92.7% -51.4% Total revenues 21,596 100.0% 51.8%
-19.0% Net revenues 20,419 55.3% -17.0% Total revenues for the
first quarter of 2009 reached US$32.8 million, representing a
year-over-year increase of 51.8% from US$21.6 million and a
quarter-over-quarter decrease of 19.0% from US$40.5 million. The
year-over-year increase was due to the increases in revenues from
all of the product lines except for digital TV screens on
airplanes. The quarter-over-quarter decrease was due to the
decreases in revenues from digital frames in airports, digital TV
screens on airplanes, traditional media in airports and other
displays, which were partially offset by the increase in revenues
from digital TV screens in airports. Revenues from digital frames
in airports Revenues from digital frames in airports for the first
quarter of 2009 increased by 79.7% year-over-year and decreased by
30.1% quarter-over-quarter to US$12.0 million. The year-over-year
increase was due to the increase in the number of time slots sold.
The quarter-over-quarter decrease was due to the decreases in the
number of time slots sold and the average advertising revenue per
time slot sold (or the "ASP"). Please refer to "Summary of Selected
Operating Data" for detailed definitions. The number of time slots
sold for the first quarter of 2009 increased by 697.6%
year-over-year and decreased by 26.6% quarter-over-quarter to 3,390
time slots. The year-over-year increase was due to continued sales
efforts and growing acceptance of AirMedia's digital frames. The
quarter-over-quarter decrease was due to advertisers' budget
reductions resulting from the economic downturn, the usual seasonal
weakness associated with the Chinese New Year period, and a shift
in advertisers' budget allocation among our different product
lines. AirMedia's digital frames were operated in 25 airports in
the first quarter of 2009, up from one airport at the end of the
first quarter of 2008, and up from 22 airports at the end of the
fourth quarter of 2008. The number of time slots available for sale
for the first quarter of 2009 increased by 1,860.0% year-over-year
and by 21.2% quarter-over-quarter to 23,971 time slots. The
year-over-year increase was primarily due to the increase in the
number of airports in AirMedia's digital frame network. The
quarter-over-quarter increase was primarily due to the commencement
of operations of digital frames in three additional airports during
the first quarter of 2009, the full-quarter operations of the
digital frames in five airports, which AirMedia commenced to
operate in the middle of the previous quarter, and the addition of
different forms of digital frames in an existing airport. The
utilization rate of digital frames for the first quarter of 2009
decreased by 9.2 percentage points quarter-over-quarter to 14.1%
primarily due to the decrease in the number of time slots sold and
the increase in the number of time slots available for sale. The
ASP of digital frames for the first quarter of 2009 decreased by
77.3% year-over-year and decreased by 3.9% quarter-over-quarter to
US$3,585. The year-over-year decrease was because the listing
prices of digital frames newly operated after the first quarter of
2008 were significantly lower than the listing price of digital
frames in Beijing Capital International Airport, which was the only
airport where we had operation of digital frames in the first
quarter of 2008. The quarter-over-quarter decrease was due to
higher discounts offered in the first quarter of 2009, which was
partially offset by the change in the mix of the time slots
sold-the number of time slots sold in Beijing Capital International
Airport, which has a higher-than-average ASP, accounted for a
higher percentage of total time slots sold in the first quarter of
2009. Revenues from digital TV screens in airports Revenues from
digital TV screens in airports for the first quarter of 2009 grew
by 22.6% year-over-year and 7.4% quarter-over-quarter to US$12.2
million due to the increase in the number of time slots sold. The
number of time slots sold for the first quarter of 2009 increased
by 51.5% year-over-year and by 45.9% quarter-over-quarter to 8,334
time slots as advertisers shifted their budget allocations among
our different products to digital TV screens in airports due to
their much lower ASP resulted from higher discounts offered. The
number of time slots available for sale for the first quarter of
2009 increased by 4.1% year-over-year to 25,714 time slots and
remained approximately unchanged from the fourth quarter of 2008.
The year-over-year increase in the number of time slots available
for sale was due to the increase in the number of airports in
operation which increased from 39 airports at the end of the first
quarter of 2008 to 41 airports at the end of the first quarter of
2009. With an extensive network of airports already in place, the
increase in the number of time slots available for sale going
forward will be minimal, allowing management to focus on maximizing
the value of time slots sold. The utilization rate for the first
quarter of 2009 increased by 10.1 percentage points year-over-year
and by 10.2 percentage points quarter-over-quarter to 32.4% due to
the increase in the number of time slots sold. The ASP of digital
TV screens in airports for the first quarter of 2009 decreased by
19.1% year-over-year and by 26.4% quarter-over-quarter to US$1,468
primarily due to higher discounts offered. Revenues from digital TV
screens on airplanes Revenues from digital TV screens on airplanes
for the first quarter of 2009 decreased by 27.2% year-over-year and
by 31.5% quarter-over-quarter to US$2.8 million. The year-over-year
decrease was due to the decrease in the number of time slots sold.
The quarter-over-quarter decrease was due to the decreases in both
the number of time slots sold and the ASP of digital TV screens on
airplanes. The number of time slots sold for the first quarter of
2009 decreased by 33.1% year-over-year and by 16.3%
quarter-over-quarter to 164 time slots due to advertisers' budget
reductions resulting from the economic downturn and the usual
seasonal weakness associated with the Chinese New Year period. The
number of time slots available for sale for the first quarter of
2009 increased by 18.4% year-over-year and by 11.1%
quarter-over-quarter to 540 time slots. The year-over-year increase
in time slots available for sale was the result of AirMedia's
adding an additional three-minute advertising time on Air China,
Xiamen Airlines and China Eastern Airlines in March 2008, October
2008 and January 2009, respectively, and the commencement of
operations on China United Airlines in January 2009. The
quarter-over-quarter increase in time slots available for sale was
also the result of the additional advertising time on China Eastern
Airlines and the commencement of operations on China United
Airlines. The utilization rate for the first quarter of 2009
decreased by 23.3 percentage points year-over-year and by 9.9
percentage points quarter-over-quarter to 30.4% primarily due to
the decrease in the number of time slots sold and the increase in
the number of time slots available for sale. The ASP of digital TV
screens on airplanes for the first quarter of 2009 increased by
8.4% year-over-year and decreased by 18.3% quarter-over-quarter to
US$17,199. The year-over-year increase in the ASP was due to fewer
discounts offered. The quarter-over-quarter decrease in the ASP was
due to higher discounts offered in the first quarter of 2009 as
well as the change in the mix of the time slots sold-the number of
time slots sold on the non-three-largest airlines, which have
significantly lower ASPs than those sold on the three-largest
airlines, accounted for a higher percentage in the first quarter of
2009. Revenues from traditional media in airports Revenues from
traditional media in airports for the first quarter of 2009
primarily included revenues from billboards and painted
advertisement on gate bridges in airports and revenues from
traditional media in Wenzhou Yongqiang Airport. Traditional media
in Beijing Capital International Airport and Shenzhen International
Airport, which AirMedia commenced to operate on April 1, 2009, have
started to contribute revenues in the second quarter of 2009.
Revenues from traditional media in airports for the first quarter
of 2009 increased by 2,493.5% year-over-year and decreased by 6.2%
quarter-over-quarter to US$4.0 million. The year-over-year increase
was because AirMedia started to consolidate the revenues of the
acquired billboards and painted advertisement on gate bridges since
the third quarter of 2008. The quarter-over-quarter decrease was
due to advertisers' budget reductions resulting from the economic
downturn and the usual seasonal weakness associated with the
Chinese New Year period. Please note part of the prior comparative
figure of "Other Displays" has been reclassified to "Traditional
Media in Airport" to conform to the current presentation. Please
refer to "Summary of Selected Operating Data" for more operating
data. Business tax and other sales tax for the first quarter of
2009 was US$1.1 million, representing a year-over-year decrease of
7.9% from US$1.2 million and a quarter-over-quarter decrease of
52.3% from US$2.3 million. The quarter-over-quarter decrease was
due to the decrease in total revenues. Net revenues for the first
quarter of 2009 reached US$31.7 million, representing a
year-over-year increase of 55.3% from US$20.4 million and a
quarter-over-quarter decrease of 17.0% from US$38.2 million. Cost
of Revenues Cost of revenues for the first quarter of 2009 was
US$25.9 million, representing a year-over-year increase of 166.0%
from US$9.7 million and a quarter-over-quarter increase of 11.2%
from US$23.3 million. The year-over-year increase was primarily due
to the increase in concession fees in connection with the expansion
of AirMedia's business. The quarter-over-quarter increase was
primarily due to the increase in concession fees and higher
depreciation cost. Cost of revenues as a percentage of net revenues
in the first quarter of 2009 was 81.7%, representing a
year-over-year increase from 47.7% in the same period one year ago
and a quarter-over-quarter increase from 61.0% in the previous
quarter. AirMedia incurs concession fees to airports for placing
and operating digital TV screens, digital frames, traditional media
in airports and other displays, and to airlines for placing
programs on their digital TV screens. Most of the concession fees
are fixed with an annual escalation. The total concession fee under
each concession rights contract is charged to the consolidated
statements of operations on a straight-line basis over the
agreement periods, which are generally between three and five
years. Concession fees for the first quarter of 2009 were US$19.0
million, representing a year-over-year increase of 302.8% from
US$4.7 million and a quarter-over-quarter increase of 24.1% from
US$15.3 million primarily due to newly entered or renewed
concession rights contracts during the respective period.
Concession fees as a percentage of net revenues in the first
quarter of 2009 was 59.9%, compared to 23.1% in the same period one
year ago and 40.1% in the previous quarter. The year-over-year and
quarter-over-quarter increases were due to the decrease in total
revenues and the result that concession fees were fixed once
concession rights contracts were entered into while revenues
generated from newly signed concession rights contracts needed time
to ramp up. Gross Profit Gross profit for the first quarter of 2009
was US$5.8 million, representing a year-over-year decrease of 45.6%
from US$10.7 million and a quarter-over-quarter decrease of 61.0%
from US$14.9 million. Gross profit as a percentage of net revenues
for the first quarter of 2009 was 18.3%, compared to 52.3% in the
same period one year ago and 39.0% in the previous quarter. The
year-over-year and quarter-over-quarter decreases in gross profit
as a percentage of net revenues were due to the decrease in total
revenues and the increases in concession fees and depreciation
cost. Operating Expenses Operating expenses (numbers in US$ 000's
except for packages): Quarter Quarter Ended Ended March % of Net
December % of Net 31, 2009 Revenues 31, 2008 Revenues Selling and
marketing expenses 2,970 9.4% 3,341 8.7% General and administrative
expenses 5,111 16.1% 5,195 13.7% Total operating expenses 8,081
25.5% 8,536 22.4% Total operating expenses excluding share-based
compensation expenses and amortization of acquired intangible
assets (a non-GAAP measure) 6,253 19.7% 6,212 16.3% Quarter Ended
Y/Y Q/Q March % of Net Growth Growth 31, 2008 Revenues rate rate
Selling and marketing expenses 2,444 12.0% 21.5% -11.1% General and
administrative expenses 2,911 14.3% 75.6% -1.6% Total operating
expenses 5,355 26.2% 50.9% -5.3% Total operating expenses excluding
share-based compensation expenses and amortization of acquired
intangible assets (a non-GAAP measure) 4,168 20.4% 50.0% 0.7% Total
operating expenses for the first quarter of 2009 were US$8.1
million, representing a year-over-year increase of 50.9% from
US$5.4 million and a quarter-over-quarter decrease of 5.3% from
US$8.5 million. Total operating expenses for the first quarter of
2009 included share-based compensation expenses of US$1.2 million,
compared to share-based compensation expenses of US$1.1 million in
the same period one year ago and US$1.7 million in the previous
quarter. Adjusted operating expenses (non-GAAP) for the first
quarter of 2009, which excluded share-based compensation expenses
and amortization of acquired intangible assets, were US$6.3
million, which represented a year-over-year increase of 50.0% from
US$4.2 million and remained approximately unchanged from the
previous quarter. Adjusted operating expenses as a percentage of
net revenues (non-GAAP) in the first quarter of 2009 was 19.7%,
compared to 20.4% in the same period one year ago and 16.3% in the
previous quarter. Please refer to the attached table for a
reconciliation of operating expenses under U.S. GAAP to adjusted
operating expenses (non-GAAP). Selling and marketing expenses for
the first quarter of 2009 were US$3.0 million including $285,000 of
share-based compensation expenses, representing a year-over-year
increase of 21.5% from US$2.4 million and a quarter-over-quarter
decrease of 11.1% from US$3.3 million. The year-over-year increase
was primarily due to the expansion of the direct sales force and
higher marketing and promotion expenses. The quarter-over-quarter
decrease was primarily due to decreased share-based compensation
expenses, lower marketing expenses, and reduced travel expenses.
General and administrative expenses for the first quarter of 2009
were US$5.1 million including US$940,000 of share-based
compensation expenses, representing a year-over-year increase of
75.6% from US$2.9 million and a quarter-over-quarter decrease of
1.6% from US$5.2 million. The year-over-year increase was primarily
due to higher amortization of acquired intangible assets, increased
professional expenses, headcount increase, higher bad debt
provision, increased expenses of office and utilities, and higher
travel expenses. Income/Loss from Operations Loss from operations
for the first quarter of 2009 was US$2.3 million, as compared to
income from operations of US$5.3 million in the same period one
year ago and income from operations of US$6.4 million in the
previous quarter. Adjusted loss from operations (non-GAAP) for the
first quarter of 2009, which excluded share-based compensation
expenses and amortization of acquired intangible assets, was
US$436,000, compared to adjusted income from operations of US$6.5
million in the same period one year ago and adjusted income from
operations of US$8.7 million in the previous quarter. Adjusted
operating margin (non-GAAP) for the first quarter of 2009, which
excluded the effect of share-based compensation expenses and
amortization of acquired intangible assets, was negative 1.4%,
compared to 31.9% in the same period one year ago and 22.8% in the
previous quarter. Please refer to the attached table for a
reconciliation of income/loss from operations under U.S. GAAP to
adjusted income/loss from operations (non-GAAP). Income Tax Benefit
Income tax benefit for the first quarter of 2009 was US$123,000
compared to income tax benefit of US$77,000 in the same period one
year ago and income tax benefit of US$352,000 in the previous
quarter. The effective income tax rate for the first quarter of
2009 was 8.7%, compared to negative 1.1% in the same period one
year ago and negative 4.4% in the previous quarter. The
year-over-year and quarter-over-quarter increases were primarily
due to the tax exemption period for one of our most profitable
subsidiaries and entities ended in fiscal year 2008. Net
Income/Loss Net loss for the first quarter of 2009 was US$1.3
million, compared to net income of US$7.3 million in the same
period one year ago and net income of US$8.4 million in the
previous quarter. The basic net loss per ADS for the first quarter
of 2009 was US$0.02, compared to basic net income per ADS of
US$0.11 in the same period one year ago and basic net income per
ADS of US$0.12 in the previous quarter. The diluted net loss per
ADS for the first quarter of 2009 was US$0.02, compared to diluted
net income per ADS of US$0.10 in the same period one year ago and
diluted net income per ADS of US$0.12 in the previous quarter.
Adjusted net income (non-GAAP) for the first quarter of 2009, which
is net income excluding share-based compensation expenses and
amortization of acquired intangible assets, was US$577,000,
representing a year-over-year decrease of 93.2% from US$8.5 million
and a quarter-over-quarter decrease of 94.5% from US$10.5 million.
Basic adjusted net income per ADS (non-GAAP) for the first quarter
of 2009 was US$0.02, compared to basic adjusted net income per ADS
of US$0.13 in the same period one year ago and basic adjusted net
income per ADS of US$0.16 in the previous quarter. Diluted adjusted
net income per ADS (non-GAAP) for the first quarter of 2009 was
US$0.02, compared to diluted adjusted net income per ADS of US$0.12
in the same period one year ago and diluted adjusted net income per
ADS of US$0.16 in the previous quarter. Please refer to the
attached table for a reconciliation of net income and basic and
diluted net income per ADS under U.S. GAAP to adjusted net income
and basic and diluted adjusted net income per ADS (non-GAAP). Cash
and Short-term Investments AirMedia continued to maintain a debt
free balance sheet. Cash and short-term investments totaled
US$146.8 million as of March 31, 2009, compared to US$161.5 million
as of December 31, 2008. The quarter-over-quarter decrease was
primarily due to the payment of US$7.4 million consideration for
AirMedia's ADS repurchases and the capital expenditure of US$2.4
million. ADS Repurchases On December 29, 2008, AirMedia's board of
directors authorized, but not obligated, AirMedia to repurchase up
to US$50 million worth of its own outstanding American Depositary
Shares ("ADSs") throughout 2009. As of May 15, 2009, AirMedia had
repurchased an aggregate of 1,646,502 ADSs on the open market for a
total consideration of US$7.4 million. Other Recent Developments In
April 2009, AirMedia entered into an exclusive contract with China
Petroleum & Chemical Corporation ("Sinopec") under which
AirMedia obtained the concession rights to develop and operate
outdoor advertising platforms at all of Sinopec's service stations
located throughout China for over five and half years until
December 31, 2014, except for service stations in limited cities
which still have original contracts with other operators in effect.
AirMedia will start to pay concession fees to Sinopec beginning in
the third quarter of 2009. The move extends AirMedia's network from
China's air travel advertising sector to the automobile advertising
market, the target demographic of which is the country's rapidly
growing population of automobile drivers and owners who, along with
air travelers, are among the most affluent members of China's
emerging consumer class. In March 2009, AirMedia obtained the
contractual concession rights to install and operate three
mega-size LED screens, each measuring 80.2 square meters (or 863.27
square feet), in Guangzhou Baiyun International Airport, from June
1, 2009 to December 31, 2015. The LED screens will be installed
above all the domestic security check areas to best cover the
domestic travelers in the airport. In March 2009, AirMedia entered
into a concession rights contract with Beijing Capital
International Airport to operate traditional advertising formats
including billboards, light boxes and other formats in 376
locations at Terminals 1, 2, and 3 of Beijing Capital International
Airport from April 1, 2009 to March 31, 2012. AirMedia commenced to
operate in most of these 376 locations on April 1, 2009. In the
same contract, AirMedia also obtained concession rights to operate
digital frames in the baggage claim areas in all of the three
terminals from April 1, 2009 to March 31, 2012. In March 2009,
AirMedia entered into a concession rights contract with Shenzhen
International Airport to operate 90 light boxes in the arrival
walkways of Terminals A and B of Shenzhen International Airport
from April 1, 2009 to December 31, 2011. In March 2009, AirMedia
renewed its concession rights contract with Shenzhen International
Airport to continue operating digital TV screens in Shenzhen
International Airport from January 1, 2009 to December 31, 2011. In
March 2009, AirMedia renewed its concession rights contract with
Air China to continue placing its programs on the routes operated
by Air China and sell advertising time slots during the programs
from January 1, 2009 to December 31, 2011. In the first quarter of
2009, AirMedia commenced to operate TV-attached digital frames in
additional three airports located in Urumqi, Changchun and Hohhot,
which expanded AirMedia's digital frame network to 25 airports. In
addition, AirMedia also commenced to operate TV-attached digital
frames in Changsha airport, which already had stand-alone digital
frames in operation. Business Outlook AirMedia currently expects
that its total revenues for the second quarter of 2009 will be in
an amount ranging from US$36.0 million to US$38.0 million,
representing a year-over-year increase of 20.9% to 27.6% from the
same period in 2008. AirMedia currently expects that concession
fees will be at least US$29.6 million in the second quarter of 2009
and US$33.3 million in the third quarter of 2009 primarily due to
the concession fee commitments under additional concession rights
contracts that were recently entered into. The above forecast
reflects AirMedia's current and preliminary view and is therefore
subject to change. Please refer to our Safe Harbor Statement for
the factors which could cause actual results to differ materially
from those contained in any forward-looking statement. Summary of
Selected Operating Data Quarter Quarter Quarter Ended Ended Ended
March December March 31, 2009 31, 2008 31, 2008 Digital TV screens
in airports Number of airports in operation 41 41 39 Number of time
slots available for sale (1) 25,714 25,668 24,700 Number of time
slots sold (3) 8,334 5,711 5,501 Utilization rate (4) 32.4% 22.2%
22.3% Average advertising revenue per time slot sold (5) US$1,468
US$1,994 US$1,815 Digital TV screens on airplanes Number of
airlines in operation 10 9 9 Number of time slots available for
sale (1) 540 486 456 Number of time slots sold (3) 164 196 245
Utilization rate (4) 30.4% 40.3% 53.7% Average advertising revenue
per time slot sold (5) US$17,199 US$21,056 US$15,873 Digital frames
in airports Number of airports in operation 25 22 1 Number of time
slots available for sale (2) 23,971 19,779 1,223 Number of time
slots sold (3) 3,390 4,617 425 Utilization rate (4) 14.1% 23.3%
34.8% Average advertising revenue per time slot sold (5) US$3,585
US$3,732 US$15,769 Y/Y Growth Rate Q/Q Growth Rate Digital TV
screens in airports Number of airports in operation 5.1% 0.0%
Number of time slots available for sale (1) 4.1% 0.2% Number of
time slots sold (3) 51.5% 45.9% Utilization rate (4) 10.1% 10.2%
Average advertising revenue per time slot sold (5) -19.1% -26.4%
Digital TV screens on airplanes Number of airlines in operation
11.1% 11.1% Number of time slots available for sale (1) 18.4% 11.1%
Number of time slots sold (3) -33.1% -16.3% Utilization rate (4)
-23.3% -9.9% Average advertising revenue per time slot sold (5)
8.4% -18.3% Digital frames in airports Number of airports in
operation 2400.0% 13.6% Number of time slots available for sale (2)
1860.0% 21.2% Number of time slots sold (3) 697.6% -26.6%
Utilization rate (4) -20.7% -9.2% Average advertising revenue per
time slot sold (5) -77.3% -3.9% Notes: (1) We define a time slot as
a 30-second equivalent advertising time unit for digital TV screens
in airports and digital TV screens on airplanes, which is shown
during each advertising cycle on a weekly basis in a given airport
or on a monthly basis on the routes of a given airline,
respectively. Our airport advertising programs are shown repeatedly
on a daily basis during a given week in one-hour cycles and each
hour of programming includes 25 minutes of advertising content,
which allows us to sell a maximum of 50 time slots per week. The
number of time slots available for our digital TV screens in
airports during the period presented is calculated by multiplying
the time slots per week per airport by the number of weeks during
the period presented when we had operations in each airport and
then calculating the sum of all the time slots available for each
of our network airports. The length of our in-flight programs
typically ranges from approximately 45 minutes to an hour per
flight, approximately five to 13 minutes of which consist of
advertising content. The number of time slots available for our
digital TV screens on airplanes during the period presented is
calculated by multiplying the time slots per airline per month by
the number of months during the period presented when we had
operations on each airline and then calculating the sum of all the
time slots for each of our network airlines. (2) After our
adjustment of time-slot length in mid May, we define a time slot as
a 12-second equivalent advertising time unit for digital frames in
airports, which is shown during each advertising cycle on a weekly
basis in a given airport. Our airport advertising programs are
shown repeatedly on a daily basis during a given week in 10-minute
cycles, which allows us to sell a maximum of 50 time slots per
week. The number of time slots available for our digital frames in
airports during the period presented is calculated by multiplying
the time slots per week per airport by the number of weeks during
the period presented when we had operations in each airport and
then calculating the sum of all the time slots available for each
of our network airports. (3) Number of time slots sold refers to
the number of 30-second equivalent advertising time units for
digital TV screens in airports and digital TV screens on airplanes
or 12-second equivalent advertising time units for digital frames
in airports sold during the period presented. (4) Utilization rate
refers to total time slots sold as a percentage of total time slots
available for sale during the relevant period. (5) Average
advertising revenue per time slot sold for digital TV screens in
airports, digital TV screens on airplanes and digital frames in
airports is calculated by dividing our revenues derived from
digital TV screens in airports, digital TV screens on airplanes and
digital frames in airports by its own number of time slots sold,
respectively. Earnings Conference Call Details AirMedia will hold a
conference call to discuss the first quarter 2009 earnings at 7:00
PM U.S. Eastern Time on May 18, 2009 (4:00 PM U.S. Pacific Time on
May 18, 2009; 7:00 AM Beijing/Hong Kong time on May 19, 2009).
AirMedia's management team will be on the call to discuss the
financial results and highlights and to answer questions.
Conference Call Dial-in Information U.S.: +1-800-901-5217 U.K.:
+44-207-365-8426 Hong Kong: +852-3002-1672 International:
+1-617-786-2964 Pass code: AMCN A replay of the call will be
available for 1 week between 9:00 p.m. on May 18, 2009 and 9:00
p.m. on May 25, 2009, Eastern Time. Replay Dial-in Information
U.S.: +1-888-286-8010 International: +1-617-801-6888 Pass code:
88498388 Additionally, a live and archived webcast of this call
will be available on the Investor Relations section of AirMedia's
corporate website at http://ir.airmedia.net.cn/ . Use of Non-GAAP
Financial Measures AirMedia's management uses non-GAAP financial
measures to gain an understanding of AirMedia's comparative
operating performance and future prospects. AirMedia's non-GAAP
financial measures exclude certain special items, including (1)
share-based compensation expenses, and (2) amortization of acquired
intangible assets. Non-GAAP financial measures are used by
AirMedia's management in their financial and operating
decision-making, because management believes they reflect
AirMedia's ongoing business and operating performance in a manner
that allows meaningful period-to-period comparisons. AirMedia's
management believes that these non-GAAP financial measures provide
useful information to investors and others in understanding and
evaluating AirMedia's operating performance in the same manner as
management does, if they so choose. Specifically, AirMedia believes
the non-GAAP financial measures provide useful information to both
management and investors by excluding certain charges that we
believe are not indicative of our core operating results. The
non-GAAP financial measures have limitations. They do not include
all items of income and expense that affect AirMedia's income from
operations. Specifically, these non-GAAP financial measures are not
prepared in accordance with GAAP, may not be comparable to non-GAAP
financial measures used by other companies and, with respect to the
non-GAAP financial measures that exclude certain items under GAAP,
do not reflect any benefit that such items may confer to AirMedia.
Management compensates for these limitations by also considering
AirMedia's financial results as determined in accordance with GAAP.
The presentation of this additional information is not meant to be
considered superior to, in isolation from or as a substitute for
results prepared in accordance with US GAAP. For more information
on these non-GAAP financial measures, please see the table
captioned "Reconciliation of GAAP Income/(Loss) and EPS and
non-GAAP Adjusted Income/(Loss) and EPS" set forth at the end of
this release. About AirMedia Group Inc. AirMedia Group Inc.
(NASDAQ:AMCN) is a leading operator of out-of-home advertising
platforms in China targeting mid-to-high-end consumers. AirMedia
operates the largest digital media network in China dedicated to
air travel advertising. AirMedia operates digital TV screens in 41
major airports, including all of the 30 largest airports in China.
AirMedia also operates digital frames in 22 major airports. In
addition, AirMedia sell advertisements on the routes operated by 12
airlines, including the three largest airlines in China. In select
major airports, AirMedia also operates traditional media platforms,
such as billboards, light boxes, and other digital media, such as
mega LED screens. Besides the above, AirMedia has exclusive
contractual concession rights to develop and operate outdoor
advertising at Sinopec's service stations located throughout China.
AirMedia plans to install its advertising platforms in at least
3,500 service stations in major cities throughout China by the end
of 2011, and in at least 8,000 service stations by the end of 2014.
For more information about AirMedia, please visit
http://www.airmedia.net.cn/ . Safe Harbor Statement This
announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expect," "anticipate," "future," "intend," "plan," "believe,"
"estimate," "confident" and similar statements. Among other things,
the quotations from management in this announcement, as well as
AirMedia Group Inc.'s strategic and operational plans, contain
forward-looking statements. AirMedia may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on Forms 20-F and 6-K, etc., in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about AirMedia's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, if
advertisers or the viewing public do not accept, or lose interest
in, our air travel advertising network, we may be unable to
generate sufficient cash flow from our operating activities and our
prospects and results of operations could be negatively affected;
we derive substantially all of our revenues from the provision of
air travel advertising services, and recent slowdown in the air
travel advertising industry in China may materially and adversely
affect our revenues and results of operation; our strategy of
expanding our advertising network by expanding into traditional
media and building new media platforms may not succeed, and our
failure to do so could materially reduce the attractiveness of our
network and harm our business, reputation and results of
operations; if our customers reduce their advertising spending due
to an economic downturn in China and/or elsewhere or for any other
reason, our revenues and results of operations may be materially
and adversely affected; if we are unable to retain existing
concession rights contracts or obtain new concession rights
contracts on commercially advantageous terms that allow us to
operate our advertising platforms, we may be unable to maintain or
expand our network coverage and our business and prospects may be
harmed; a significant portion of our revenues has been derived from
the five largest airports and three largest airlines in China, and
if any of these airports or airlines experiences a material
business disruption, our ability to generate revenues and our
results of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
our future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. AirMedia Group Inc. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (In U.S. dollars in thousands) March
31, December 31, 2009 2008 as adjusted(1) ASSETS: Current Assets:
Cash 128,060 161,534 Short-term investments 18,733 -- Accounts
receivable, net 44,132 38,386 Prepaid concession fees 28,770 32,706
Other current assets 7,145 7,830 Deferred tax assets - current 431
380 Total current assets 227,271 240,836 Acquired intangible
assets, net 8,410 9,027 Property and equipment, net 64,715 62,443
Long-term deposits 17,675 14,724 Long-term investments 1,142 1,099
Deferred tax assets - non-current 1,887 1,762 Total Assets 321,100
329,891 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities:
Accounts payable 12,323 15,696 Accrued expenses and other current
liabilities 5,544 5,664 Deferred revenue 6,058 2,929 Income tax
payable 362 852 Amounts due to related parties 408 408 Total
current liabilities 24,695 25,549 Deferred tax liability -
non-current 2,498 2,659 Total liabilities 27,193 28,208
Shareholders' equity Ordinary shares 131 134 Additional paid-in
capital 262,723 268,881 Statutory reserve 5,593 5,593 Accumulated
earning 14,819 16,070 Accumulated other comprehensive income 9,692
10,054 Total AirMedia Group Inc. shareholders' equity 292,958
300,732 Noncontrolling interest 949 951 Total shareholders' equity
293,907 301,683 Total Liabilities and Shareholders' Equity 321,100
329,891 (1) Amount in relation to noncontrolling interest, formerly
named minority interest, for the three-month periods ended March
31, 2008 and December 31, 2008 is reclassified in accordance with
FASB Statement No. 160, Noncontrolling Interest, which was adopted
by the Company on January 1, 2009. AirMedia Group Inc. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In U.S. dollars in
thousands, except share related data) Three Months Ended March 31,
December 31, March 31, 2009 2008 2008 as as adjusted(1) adjusted(1)
Revenues 32,786 40,462 21,596 Business tax and other sales tax
(1,084) (2,272) (1,177) Net revenues 31,702 38,190 20,419 Cost of
revenues 25,885 23,280 9,730 Gross profit 5,817 14,910 10,689
Operating expenses: Selling and marketing * 2,970 3,341 2,444
General and administrative * 5,111 5,195 2,911 Total operating
expenses 8,081 8,536 5,355 Income/(loss) from operations (2,264)
6,374 5,334 Interest income 692 1,216 1,822 Other income, net 152
438 135 Income/(loss) before income taxes (1,420) 8,028 7,291
Income tax expense/ (benefit) (123) (352) (77) Net income/(loss)
before net income(loss) of equity accounting investment (1,297)
8,380 7,368 Net income/(Loss) of equity accounting investment 44 23
(93) Net income / (loss) (1,253) 8,403 7,275 Less: Net income
(loss) attributable to noncontrolling interest (2) 275 (2) Net
income/(loss) attributable to AirMedia Group Inc. (1,251) 8,128
7,277 Net income/(loss) attributable to AirMedia Group Inc. common
shareholders per ordinary share Basic ($0.01) $0.06 $0.05 Diluted
($0.01) $0.06 $0.05 Net income/(loss) attributable to AirMedia
Group Inc. common shareholders per ADS Basic ($0.02) $0.12 $0.11
Diluted ($0.02) $0.12 $0.10 Weighted average ordinary shares
outstanding used in computing net income per ordinary share - basic
132,801,682 133,820,539 134,425,925 Weighted average ordinary
shares outstanding used in computing net income per ordinary share
- diluted 132,801,682 134,608,724 139,317,264 * Share-based
compensation charges included are as follow: Selling and marketing
285 407 259 General and administrative 940 1,312 860 (1) Amount in
relation to noncontrolling interest, formerly named minority
interest, for the three-month periods ended March 31, 2008 and
December 31, 2008 is reclassified in accordance with FASB Statement
No. 160, Noncontrolling Interest, which was adopted by the Company
on January 1, 2009. AirMedia Group Inc. RECONCILIATION OF GAAP NET
INCOME AND EPS TO NON-GAAP ADJUSTED NET INCOME AND EPS (In U.S.
dollars in thousands, except share related data) Three Months Ended
March 31, December 31, March 31, 2009 2008 2008 GAAP net income
loss attributable to shareholders (1,251) 8,128 7,277 Amortization
of acquired intangible assets 603 605 68 Share-based compensation
1,225 1,719 1,119 Adjusted net income 577 10,452 8,464 Basic
adjusted net income per share $0.01 $0.08 $0.06 Diluted adjusted
net income per share $0.01 $0.08 $0.06 Basic adjusted net income
per ADS $0.02 $0.16 $0.13 Diluted adjusted net income per ADS $0.02
$0.16 $0.12 Shares used in computing adjusted basic net income per
share 132,801,682 133,820,539 133,425,925 Shares used in computing
adjusted diluted net income per share 132,801,682 134,608,724
139,317,264 Note: The Non-GAAP adjusted net income per share and
per ADS are computed using Non-GAAP net adjusted income and number
of shares and ADS used in GAAP basic and diluted EPS calculation,
where the number of shares and ADS is adjusted for dilution due to
share-based compensation plan. AirMedia Group Inc. RECONCILIATION
OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (In U.S.
dollars in thousands, except for percentage) Three Months Ended
March 31, December 31, March 31, 2009 2008 2008 GAAP operating
expenses 8,081 8,536 5,355 Amortization of acquired intangible
assets 603 605 68 Share-based compensation 1,225 1,719 1,119
Adjusted operating expenses 6,253 6,212 4,168 Adjusted operating
expenses as a percentage of net revenues 19.7% 16.3% 20.4% AirMedia
Group Inc. RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO
NON-GAAP INCOME FROM OPERATIONS (In U.S. dollars in thousands,
except for percentage) Three Months Ended March 31, December 31,
March 31, 2009 2008 2008 Income/(loss) from operations (2,264)
6,374 5,334 Amortization of acquired intangible assets 603 605 68
Share-based compensation 1,225 1,719 1,119 Adjusted Income/(loss)
from operations (436) 8,698 6,521 Adjusted Operating margin -1.4%
22.8% 31.9% For further information, please contact: AirMedia
Group, Inc. Raymond Huang Investor Relations Director Tel:
+86-10-8460-8678 Email: Brunswick Group Cynthia He Tel:
+86-10-6566-2256 Email: DATASOURCE: AirMedia Group Inc. CONTACT:
AirMedia Group Inc., Raymond Huang, Investor Relations Director,
+86-10-8460-8678, or Brunswick Group, Cynthia He, +86-10-6566-
2256, for AirMedia Group, Inc. Web site:
http://www.airmedia.net.cn/
Copyright
Airmedia Grp. ADS, Each Representing Two Ordinary Shares (MM) (NASDAQ:AMCN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Airmedia Grp. ADS, Each Representing Two Ordinary Shares (MM) (NASDAQ:AMCN)
Historical Stock Chart
From Jul 2023 to Jul 2024