BEIJING, May 9, 2011 /PRNewswire-Asia-FirstCall/ --
AirMedia Group Inc. ("AirMedia" or the "Company") (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,
2011.
First Quarter 2011 Financial and
Business Highlights
- Total revenues increased by 25.8% year-over-year to
US$61.4 million.
- Gross profit increased by 65.7% year-over-year to US$3.7 million.
- Net loss attributable to AirMedia's shareholders was
US$3.9 million, improving from net
loss attributable to AirMedia's shareholders of US$6.5 million in the same period one year ago.
Basic and diluted net loss attributable to AirMedia's shareholders
per American Depositary Share ("ADS") were both US$0.06.
- Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP), which is net loss attributable to AirMedia's
shareholders excluding share-based compensation expenses and
amortization of acquired intangible assets, was US$2.3 million, improving from adjusted net loss
attributable to AirMedia's shareholders (non-GAAP) of US$3.8 million in the same period one year ago.
Adjusted basic and diluted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) were both US$0.03.
- The Company continued generating positive operating cash flow
in excess of capital expenditures in the first quarter of 2011.
Other than restricted cash of US$6.9
million, cash and short-term investments increased to
US$109.9 million as of March 31, 2011, from US$106.5 million as of December 31, 2010.
"We are pleased to report a stronger-than-expected revenue
growth in the first quarter of 2011. Our automobile advertisers
have demonstrated steady and strong preference to our media
platforms by delivering revenue growth of 75.4% year-over-year. Our
price increase also contributed to the revenue growth," commented
Herman Guo, chairman and chief
executive officer of AirMedia. "We will continue to focus on our
strategy of achieving profitable growth."
"Our core business has demonstrated strong profitable growth in
the first quarter of 2011. The non-GAAP loss of $2.3 million was about the same amount as the
loss from the newly signed gate bridges contracts at Terminal 3 of
Beijing Capital International Airport in the first quarter of
2011," Ping Sun, AirMedia's chief
financial officer, commented.
First Quarter 2011
Financial Results
Revenues
Total revenues by product line (numbers in US$ 000's except for
percentages):
|
|
Quarter
Ended March 31, 2011
|
% of Total
Revenues
|
|
Quarter
Ended December 31,2010
|
% of Total
Revenues
|
|
Quarter
Ended March 31, 2010
|
% of Total
Revenues
|
|
Y/Y Growth
rate
|
|
Q/Q Growth
rate
|
|
Air Travel Media
Network
|
|
56,973
|
92.9%
|
|
66,634
|
94.2%
|
|
46,124
|
94.6%
|
|
23.5%
|
|
-14.5%
|
|
Digital frames in
airports
|
|
30,192
|
49.2%
|
|
32,653
|
46.1%
|
|
22,397
|
45.9%
|
|
34.8%
|
|
-7.5%
|
|
Digital TV screens in
airports
|
|
5,209
|
8.5%
|
|
8,586
|
12.1%
|
|
6,473
|
13.3%
|
|
-19.5%
|
|
-39.3%
|
|
Digital TV screens on
airplanes
|
|
6,799
|
11.1%
|
|
9,597
|
13.6%
|
|
6,856
|
14.1%
|
|
-0.8%
|
|
-29.2%
|
|
Traditional media in
airports
|
|
13,901
|
22.7%
|
|
14,209
|
20.1%
|
|
9,898
|
20.3%
|
|
40.4%
|
|
-2.2%
|
|
Other revenues in air
travel
|
|
872
|
1.4%
|
|
1,589
|
2.3%
|
|
500
|
1.0%
|
|
74.4%
|
|
-45.1%
|
|
Gas Station Media
Network
|
|
1,799
|
2.9%
|
|
1,559
|
2.2%
|
|
176
|
0.4%
|
|
922.2%
|
|
15.4%
|
|
Other Media
|
|
2,581
|
4.2%
|
|
2,569
|
3.6%
|
|
2,469
|
5.0%
|
|
4.5%
|
|
0.5%
|
|
Total revenues
|
|
61,353
|
100.0%
|
|
70,762
|
100.0%
|
|
48,769
|
100.0%
|
|
25.8%
|
|
-13.3%
|
|
Net revenues
|
|
59,901
|
|
|
68,687
|
|
|
47,759
|
|
|
25.4%
|
|
-12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues for the first quarter of 2011 reached
US$61.4 million, representing a
year-over-year increase of 25.8% from US$48.8 million and a quarter-over-quarter
decrease of 13.3% from US$70.8
million. The year-over-year increase was primarily due to
increases in revenues from digital frames in airports and
traditional media in airports. The quarter-over-quarter decrease
was due to decreases in revenues from most of the product lines
except for gas station media network and other media.
Revenues from digital frames in airports
Revenues from digital frames in airports for the first quarter
of 2011 increased by 34.8% year-over-year and decreased by 7.5%
quarter-over-quarter to US$30.2
million. The year-over-year increase was due to increases in
both the number of time slots sold and the average advertising
revenue per time slot sold (the "ASP"). The quarter-over-quarter
decrease was due to a decrease in the number of time slots sold,
which was partially offset by an increase in the ASP. Please refer
to "Summary of Selected Operating Data" below for detailed
definitions of the operating data cited in this press release.
The number of time slots sold for the first quarter of 2011
increased by 13.1% year-over-year and decreased by 23.7%
quarter-over-quarter to 10,327 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 the usual seasonal weakness associated with the Chinese New Year period and the higher ASP in the
first quarter of 2011. AirMedia operated digital frames in 35
airports in the first quarter of 2011, up from 32 airports at the
end of the first quarter of 2010 and from 34 airports at the end of
the fourth quarter of 2010. The number of time slots available for
sale for the first quarter of 2011 increased by 13.3%
year-over-year and decreased by 2.3% quarter-over-quarter to 34,139
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 decrease was primarily due to
AirMedia's ceasing to operate the TV-attached digital frames in
Hangzhou Xiaoshan International Airport as of March 1, 2011. The utilization rate of digital
frames for the first quarter of 2011 remained relatively unchanged
year-over-year and decreased by 8.5 percentage points
quarter-over-quarter to 30.2%. The quarter-over-quarter decrease
was primarily due to the decrease in the number of time slots
sold.
The ASP of digital frames for the first quarter of 2011
increased by 19.2% year-over-year and by 21.2% quarter-over-quarter
to US$2,924. The year-over-year
increase was primarily due to an increase in the listing prices of
digital frames in some airports in early 2010, which had only
partial impact in the same period one year ago, and lower discounts
offered in the first quarter of 2011 than in the same period one
year ago. The quarter-over-quarter increase was primarily due to
lower discounts offered in the first quarter of 2011 than in the
previous quarter and an increase in the listing prices of
stand-alone digital frames in all airports starting from
January 1, 2011, which had partial
impact in the first quarter of 2011.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the first
quarter of 2011 decreased by 19.5% year-over-year and by 39.3%
quarter-over-quarter to US$5.2
million. The year-over-year and quarter-over-quarter
decreases were due to decreases in the number of time slots sold,
which was partially offset by increases in the ASP of digital TV
screens in the airports.
The number of time slots sold for the first quarter of 2011
decreased by 52.6% year-over-year and by 50.0% quarter-over-quarter
to 3,555 time slots. The year-over-year decrease was primarily due
to the higher ASP during the quarter, The quarter-over-quarter
decrease was primarily due to the usual seasonal weakness
associated with the Chinese New Year
period, and the higher ASP during the quarter, which resulted in
fewer time slots sold when advertisers did not increase their
advertising spending at the same speed as the increase in ASP. The
number of time slots available for sale for the first quarter of
2011 decreased by 18.5% year-over-year and by 21.7%
quarter-over-quarter to 18,780 time slots. The year-over-year and
quarter-over-quarter decreases were primarily due to the fact that
AirMedia shortened advertising time within each one hour program to
20 minutes from 25 minutes after it became the operator of CCTV's
Air Channel to better attract air travelers' attention. The change
in advertising time only had impact on time slots available for
sale and utilization rate, and had no impact on time slots sold and
ASP; thus it had no impact on revenues from digital TV screens in
airports as this media was not fully utilized in the first quarter
of 2011 and in the past. The utilization rate for the first quarter
of 2011 decreased by 13.7 percentage points year-over-year and by
10.7 percentage points quarter-over-quarter to 18.9% primarily due
to the decreases in the number of time slots sold, which was
partially offset by the decreases in the number of time slots
available for sale.
The ASP of digital TV screens in airports for the first quarter
of 2011 increased by 70.0% year-over-year and by 21.2%
quarter-over-quarter to US$1,465. The
year-over-year increase was primarily due to the change in mix of
time slots sold and lower discounts offered in the first quarter of
2011 than in the same period one year ago. The number of time slots
sold in the top three airports, which have significantly higher
ASPs than those sold in other airports, accounted for a much higher
percentage of total number of time slots sold in the first quarter
of 2011 than in the same period one year ago. The
quarter-over-quarter increase was primarily due to lower discounts
in the first quarter of 2011 than in the previous quarter, and the
change in mix of time slots sold. The number of time slots sold in
the top three airports, which have significantly higher ASPs than
those sold in other airports, accounted for a higher percentage of
total number of time slots sold in the first quarter of 2011 than
in the previous quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the first
quarter of 2011 decreased slightly year-over-year and by 29.2%
quarter-over-quarter to US$6.8
million. The quarter-over-quarter decrease was primarily due
to a decrease in the number of time slots sold.
The number of time slots sold for the first quarter of 2011
decreased by 18.9% year-over-year and decreased by 42.3%
quarter-over-quarter to 232 time slots. The year-over-year decrease
was due to higher ASP during the quarter, which resulted in fewer
time slots sold when advertisers did not increase their advertising
spending at the same speed as the increase in ASP. The
quarter-over-quarter decrease was primarily due to the comparison
with an exceptionally good quarter in the previous quarter, and the
higher ASP during the quarter, which resulted in fewer time slots
sold when advertisers did not increase their advertising spending
at the same speed as the increase in ASP. The number of time slots
available for sale for the first quarter of 2011 increased by 1.5%
year-over-year and decreased by 2.8% quarter-over-quarter to 414
time slots. The year-over-year increase was primarily due to the
operation of the digital media on Hainan Airlines' airplanes, which
was partially offset by the termination of operation of digital TV
screens on Xiamen Airlines' airplanes. The quarter-over-quarter
decrease was primarily due to the termination of operation of
digital TV screens on Xiamen Airlines' airplanes, which was
partially offset by the commencement of operations of advertising
time on the Video-on-Demand system and portable multi-media devices
in business class and first class on the airplanes of China
Southern Airlines, which was sold separately from the advertising
time on the digital TV screens on China Southern Airlines'
airplanes. The utilization rate for the first quarter of 2011
decreased by 14.1 percentage points year-over-year and 38.4
percentage points to 56.0%. The year-over-year and
quarter-over-quarter decreases were primarily due to the decreases
in the number of time slots sold.
The ASP of digital TV screens on airplanes for the first quarter
of 2011 increased by 22.3% year-over-year and by 22.8%
quarter-over-quarter to US$29,325.
The year-over-year and quarter-over-quarter increases in the ASP
were primarily due to the change in the mix of the time slots sold
and lower discounts offered in the first quarter of 2011 than in
the same period one year ago and in the previous quarter. The
number of time slots sold on the three largest airlines, which have
significantly higher ASPs than those sold on the other airlines,
accounted for a higher percentage in the first quarter of 2011 than
in the same period one year ago and in the previous quarter.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the first
quarter of 2011 increased by 40.4% year-over-year and decreased by
2.2% quarter-over-quarter to US$13.9
million. The year-over-year increase was due to increases in
both the number of locations sold and the ASP of traditional media
in airports. The quarter-over-quarter decrease was due to a
decrease in the ASP of traditional media in airports, which was
offset by an increase in the number of locations sold.
The number of locations sold for the first quarter of 2011
increased by 32.8% year-over-year and by 3.6% quarter-over-quarter
to 522 locations primarily due to continued sales efforts and
growing acceptance of AirMedia's traditional media in airports. The
number of locations available for sale for the first quarter of
2011 increased by 28.7% year-over-year and by 16.4%
quarter-over-quarter to 875 locations. The year-over-year increase
was primarily due to the newly signed billboards and painted
advertisement on gate bridges at Terminal 3 of Beijing Capital
International Airport in the first quarter of 2011 and the
commencement of operations of light boxes in Dalian Zhoushuizi
International Airport in September
2010. The quarter-over-quarter increase was primarily due to
the newly signed billboards and painted advertisement on gate
bridges at Terminal 3 of Beijing Capital International Airport. The
utilization rate of traditional media for the first quarter of 2011
increased by 1.9 percentage points year-over-year and decreased by
7.3 percentage points quarter-over-quarter to 59.7%. The
year-over-year increase was due to the increase in the number of
locations sold, which was partially offset by the increase in the
number of locations available for sale. The quarter-over-quarter
decrease was primarily due to the increase in the number of
locations available for sale.
The ASP of traditional media in airports for the first quarter
of 2011 increased by 5.7% year-over-year and decreased by 5.5%
quarter-over-quarter to US$26,631.
The year-over-year increase was primarily due to lower discounts
offered in the first quarter of 2011 than in the same period one
year ago and more locations with higher listing prices sold in the
first quarter of 2011 than in the same period one year ago. The
quarter-over-quarter decrease was primarily due to higher discounts
offered in the first quarter of 2011 than in the previous quarter
and more locations with lower listing prices sold in the first
quarter of 2011 than in the previous quarter.
Revenues from the gas station media
network
Revenues from the gas station media network for the first
quarter of 2011 increased by 922.2% year-over-year and 15.4%
quarter-over-quarter to US$1.8
million.
As of April 30, 2011, AirMedia's
gas station media network had covered total 2,509 Sinopec gas
stations. Of these gas stations, 213 are located in Beijing, 310 are in Shanghai, 103 are in Shenzhen and the remaining 1,883 are in 58
other cities.
Revenues from other media
Revenues from other media were primarily revenues from Beijing
AirMedia City Outdoor Advertising Co., Ltd., a company AirMedia
acquired in January 2010. Revenues
from other media increased by 4.5% year-over-year to US$2.6 million, which remained relatively
unchanged quarter-over-quarter.
Business tax and other sales tax
Business tax and other sales tax for the first quarter of 2011
were US$1.5 million, compared to
US$1.0 million in the same period one
year ago and US$2.1 million in the
previous quarter. For purposes of calculating the amount of
business and other sales tax, concession fees are permitted to be
deducted from total revenues under applicable PRC tax law.
Net revenues
Net revenues for the first quarter of 2011 reached US$59.9 million, representing a year-over-year
increase of 25.4% from US$47.8
million and a quarter-over-quarter decrease of 12.8% from
US$68.7 million.
Cost of Revenues
Cost of revenues for the first quarter of 2011 was US$56.2 million, representing a year-over-year
increase of 23.4% from US$45.5
million and a quarter-over-quarter increase of 3.4% from
US$54.3 million. The year-over-year
increase was primarily due to increases in concession fees, agency
fees paid to third-party advertising agencies, and depreciation
cost. The quarter-over-quarter increase was primarily due to
increases in concession fees. Cost of revenues as a percentage of
net revenues in the first quarter of 2011 was 93.8%, compared to
95.3% in the same period one year ago and 79.1% in the previous
quarter.
AirMedia incurs concession fees to airports for placing and
operating digital frames, digital TV screens, traditional media and
other displays in airports, to airlines for playing programs on
their digital TV screens, to Sinopec for placing outdoor media in
its gas stations, and to other media resources owners for placing
unipole signs and other outdoor media.
Concession fees for the first quarter of 2011 increased by 18.5%
year-over-year and by 5.8% quarter-over-quarter to US$37.9 million. The year-over-year increase was
primarily due to newly signed or renewed concession rights
contracts during the period. The quarter-over-quarter increase was
primarily due to the newly signed billboards and painted
advertisement on gate bridges at Terminal 3 of Beijing Capital
International Airport. Concession fees as a percentage of net
revenues in the first quarter of 2011 was 63.2%, decreasing from
66.9% in the same period one year ago and increasing from 52.1% in
the previous quarter. The year-over-year decrease of concession
fees as a percentage of net revenues was primarily due to the fact
that revenues continued to ramp up while incremental concession
fees grew at a slower pace than revenue growth. The
quarter-over-quarter increase of concession fees as a percentage of
net revenues was e primarily because newly signed billboards and
painted advertisement on gate bridges were a low-margin business
and the incremental concession fees associated with these new
concession rights contracts were fixed once concession rights
contracts were entered into, while revenues generated from newly
signed concession rights contracts would take time to ramp up.
Gross Profit/Loss
Gross profit for the first quarter of 2011 was US$3.7 million, representing a year-over-year
increase of 65.7% from US$2.2 million
and a quarter-over-quarter decrease of 74.2% from US$14.3 million.
Gross profit as a percentage of net revenues for the first
quarter of 2011 was 6.2%, compared to 4.7% in the same period one
year ago and 20.9% in the previous quarter. The year-over-year
increase in gross profit as a percentage of net revenues was
primarily due to the increase in net revenues. The
quarter-over-quarter decrease in gross profit as a percentage of
net revenues was primarily due to the decreases in net revenues and
the increase in cost of revenues.
Operating Expenses
Operating expenses (numbers in US$ 000's except for
percentages):
|
Quarter
Ended March 31, 2011
|
% of Net
Revenues
|
|
Quarter
Ended December 31,2010
|
% of Net
Revenues
|
|
Quarter
Ended March 31, 2010
|
% of Net
Revenues
|
|
Y/Y Growth
rate
|
Q/Q Growth
rate
|
|
Selling and marketing
expenses
|
4,289
|
7.2%
|
|
4,866
|
7.1%
|
|
4,123
|
8.6%
|
|
4.0%
|
-11.9%
|
|
General and administrative
expenses
|
4,854
|
8.1%
|
|
5,182
|
7.5%
|
|
6,630
|
13.9%
|
|
-26.8%
|
-6.3%
|
|
Impairment of intangible
asset
|
-
|
0.0%
|
|
1,000
|
1.5%
|
|
-
|
0.0%
|
|
N/A
|
-100.0%
|
|
Total operating
expenses
|
9,143
|
15.3%
|
|
11,048
|
16.1%
|
|
10,753
|
22.5%
|
|
-15.0%
|
-17.2%
|
|
Adjusted operating
expenses
(non-GAAP)
|
7,495
|
12.5%
|
|
8,944
|
13.0%
|
|
8,069
|
16.9%
|
|
-7.1%
|
-16.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses for the first quarter of 2011 were
US$9.1 million, representing a
year-over-year decrease of 15.0% from US$10.8 million and a quarter-over-quarter
decrease of 17.2% from US$11.0
million.
Total operating expenses for the first quarter of 2011 included
share-based compensation expenses of US$709,000, compared to share-based compensation
expenses of US$1.8 million in the
same period one year ago and share-based compensation expenses of
US$1.1 million in the previous
quarter. The year-over-year and quarter-over-quarter decreases in
share-based compensation expenses were primarily due to the fully
vesting on July 2, 2010, July 20, 2010, and November 29, 2010, respectively, of stock options
granted on July 2, 2007, July 20, 2007 and November
29, 2007, respectively.
Adjusted operating expenses (non-GAAP) for the first quarter of
2011, which excluded share-based compensation expenses and
amortization of acquired intangible assets, were US$7.5 million, representing a year-over-year
decrease of 7.1% from US$8.1 million
and a quarter-over-quarter decrease of 16.2% from US$8.9 million. Adjusted operating expenses as a
percentage of net revenues (non-GAAP) in the first quarter of 2011
was 12.5%, compared to 16.9% in the same period one year ago and
13.0% in the previous quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Operating Expenses to Non-GAAP Adjusted Operating Expenses"
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 2011
were US$4.3 million, including
share-based compensation expenses of US$281,000. This represented a year-over-year
increase of 4.0% from US$4.1 million
and a quarter-over-quarter decrease of 11.9% from US$4.9 million. The year-over-year increase was
primarily due to higher expenses related to the expansion of the
gas station media network and higher sales commissions for direct
sales staff. The quarter-over-quarter decrease was primarily due to
lower expenses related to the gas station media network and lower
sales commissions for direct sales staff.
General and administrative expenses for the first quarter of
2011 were US$4.9 million, including
share-based compensation expenses of US$428,000. This represented a year-over-year
decrease of 26.8% from US$6.6 million
and a quarter-over-quarter decrease of 6.3% from US$5.2 million. The year-over-year decrease was
primarily due to lower bad-debt provisions and lower share-based
compensation expenses. The quarter-over-quarter decrease was
primarily due to lower share-based compensation expenses and lower
travel expenses.
Income/Loss from Operations
Loss from operations for the first quarter of 2011 was
US$5.4 million, as compared to loss
from operations of US$8.5 million in
the same period one year ago and income from operations of
US$3.3 million in the previous
quarter.
Adjusted loss from operations (non-GAAP) for the first quarter
of 2011, which excluded share-based compensation expenses and
amortization of acquired intangible assets, was US$3.8 million, compared to adjusted loss from
operations (non-GAAP) of US$5.8
million in the same period one year ago and adjusted income
from operations (non-GAAP) of US$5.4
million in the previous quarter. Adjusted operating margin
(non-GAAP) for the first quarter of 2011, which excluded the effect
of share-based compensation expenses and amortization of acquired
intangible assets, was negative 6.3%, compared to negative 12.2% in
the same period one year ago and 7.9% in the previous quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Loss from Operations to Non-GAAP Adjusted Loss from
Operations" for a reconciliation of loss from operations under U.S.
GAAP to adjusted loss from operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax expenses for the first quarter of 2011 were
US$522,000, compared to income tax
expenses of US$21,000 in the same
period one year ago and income tax benefits of US$418,000 in the previous quarter. The effective
income tax rate for the first quarter of 2011 was 11.0%, compared
to 0.3% in the same period one year ago and 11.0% in the previous
quarter.
Net Income/Loss Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for the first
quarter of 2011 was US$3.9 million,
compared to net loss attributable to AirMedia's shareholders of
US$6.5 million in the same period one
year ago and net income attributable to AirMedia's shareholders of
US$5.1 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders
per ADS for the first quarter of 2011 was US$0.06, compared to basic net loss attributable
to AirMedia's shareholders per ADS of US$0.10 in the same period one year ago and basic
net income attributable to AirMedia's shareholders per ADS of
US$0.08 in the previous quarter. The
diluted net loss attributable to AirMedia's shareholders per ADS
for the first quarter of 2011 was US$0.06, compared to diluted net loss
attributable to AirMedia's shareholders per ADS of US$0.10 in the same period one year ago and
diluted net income attributable to AirMedia's shareholders per ADS
of US$0.07 in the previous
quarter.
Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) for the first quarter of 2011, which is net loss
attributable to AirMedia's shareholders excluding share-based
compensation expenses and amortization of acquired intangible
assets, was US$2.3 million, compared
to adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) of US$3.8 million in the
same period one year ago and adjusted net income attributable to
AirMedia's shareholders (non-GAAP) of US$7.2
million in the previous quarter. Basic adjusted net loss
attributable to AirMedia's shareholders per ADS (non-GAAP) for the
first quarter of 2011 was US$0.03,
compared to basic adjusted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.06 in the same period one year ago and basic
adjusted net income attributable to AirMedia's shareholders per ADS
(non-GAAP) of US$0.11 in the previous
quarter. Diluted adjusted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) for the first quarter of 2011 was
US$0.03, compared to diluted adjusted
net loss attributable to AirMedia's shareholders per ADS (non-GAAP)
of US$0.06 in the same period one
year ago and diluted adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.10 in the previous quarter.
Please refer to the attached table captioned "Reconciliation Of
GAAP Net Income (Loss) and EPS To Non-GAAP Adjusted Net Income
(Loss) and EPS" for a reconciliation of net income (loss)
attributable to AirMedia's shareholders and basic and diluted net
income (loss) attributable to AirMedia's shareholders per ADS under
U.S. GAAP to adjusted net income (loss) attributable to AirMedia's
shareholders (non-GAAP) and basic and diluted adjusted net income
(loss) attributable to AirMedia's shareholders per ADS
(non-GAAP).
Cash and
Restricted Cash
Other than restricted cash of US$6.9
million, cash totaled US$109.9
million as of March 31, 2011,
compared to US$106.5 million as of
December 31, 2010. The increase in
cash from December 31, 2010 was
primarily due to cash flow from operations.
ADS Repurchases
On March 21, 2011, AirMedia's
board of directors authorized AirMedia to repurchase up to
US$20 million of its own outstanding
American Depositary Shares ("ADSs") within two years from
March 21, 2011. As of May 8, 2011, AirMedia had repurchased an
aggregate of 231,183 ADSs on the open market for a total
consideration of US$1.1 million.
Management Announcement
On May 5, 2011, AirMedia's board
of directors appointed Mr. James Zhonghua
Feng, its former chief operating officer, as president of
the Company, effective May 6, 2011.
Mr Feng Zhonghua ceased to serve as chief operating officer of the
Company, effective on the same day. Mr Feng Zhonghua was also
appointed to be a member of the Board of Directors of the Company,
effective May 6, 2011.
Other Recent Developments
On May 6, 2011, AirMedia filed its
annual report on Form 20-F for the fiscal year ended December 31, 2010, including its audited
financial statements for the year, with the U.S. Securities and
Exchange Commission.
On March 22, under its 2007 Share
Incentive Plan, AirMedia granted certain employees and consultants
options to purchase a total of 2,110,000 ordinary shares with the
exercise price of US$2.3 per ordinary
share, or US$4.6 per ADS. These
options will vest on a straight-line basis over a three-year
period, with one-twelfth of the options vesting each quarter from
the date of grant. The incremental share-based compensation
expenses associated with this grant was US$24,000 in the first quarter of 2011 and will
be additional approximately US$221,000 in the second quarter of 2011 and each
quarter going forward.
On March 21, 2011, AirMedia
commenced operations of 14 sets of 65-inch stand-alone digital
frames across the airport and 14 sets of 70-inch digital frames at
the baggage claim areas of Taiyuan Wusu International Airport.
AirMedia obtained concession rights through two contracts to
operate advertisements inside and outside 59 gate bridges located
at Terminal 3 of Beijing Capital International Airport from
February 1, 2011 to January 31, 2013, and from March 1, 2011 to February
28, 2013, respectively.
Business Outlook
AirMedia currently expects that its total revenues for the
second quarter of 2011 will range from US$60.0 million to US$62.0 million, which include
revenues of US$2.0 million from gate
bridges at Terminal 3 of Beijing Capital International Airport,
representing a year-over-year increase of 6.5% to 10.1% from the
same period in 2010.
AirMedia currently expects that concession fees will be
approximately US$41.3 million in the
second quarter of 2011. The quarter-over-quarter increase from the
first quarter of 2011 will be primarily due to the full-quarter
operations of the newly signed billboards and painted advertisement
on gate bridges at Terminal 3 of Beijing Capital International
Airport.
The above forecast reflects AirMedia's current and preliminary
view and is therefore subject to change. Please refer to the Safe
Harbor Statement below for the factors that could cause actual
results to differ materially from those contained in any
forward-looking statement.
Summary of Selected Operating Data
|
Quarter
Ended
March
31,
2011
|
|
Quarter
Ended
December
31,
2010
|
|
Quarter
Ended
March
31,
2010
|
|
Y/Y Growth
Rate
|
|
Q/Q Growth
Rate
|
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
35
|
|
34
|
|
32
|
|
9.4%
|
|
2.9%
|
|
Number of time slots
available for sale (2)
|
34,139
|
|
34,950
|
|
30,144
|
|
13.3%
|
|
-2.3%
|
|
Number of time slots sold
(3)
|
10,327
|
|
13,534
|
|
9,134
|
|
13.1%
|
|
-23.7%
|
|
Utilization rate
(4)
|
30.2%
|
|
38.7%
|
|
30.3%
|
|
-0.1%
|
|
-8.5%
|
|
Average advertising
revenue per time slot sold (5)
|
US$2,924
|
|
US$2,413
|
|
US$2,452
|
|
19.2%
|
|
21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
37
|
|
38
|
|
36
|
|
2.8%
|
|
-2.6%
|
|
Number of time slots
available for sale (1)
|
18,780
|
|
23,986
|
|
23,050
|
|
-18.5%
|
|
-21.7%
|
|
Number of time slots sold
(3)
|
3,555
|
|
7,103
|
|
7,505
|
|
-52.6%
|
|
-50.0%
|
|
Utilization rate
(4)
|
18.9%
|
|
29.6%
|
|
32.6%
|
|
-13.7%
|
|
-10.7%
|
|
Average advertising
revenue per time slot sold (5)
|
US$1,465
|
|
US$1,209
|
|
US$862
|
|
70.0%
|
|
21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on
airplanes
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in
operation
|
8
|
|
9
|
|
8
|
|
0.0%
|
|
-11.1%
|
|
Number of time slots
available for sale (1)
|
414
|
|
426
|
|
408
|
|
1.5%
|
|
-2.8%
|
|
Number of time slots sold
(3)
|
232
|
|
402
|
|
286
|
|
-18.9%
|
|
-42.3%
|
|
Utilization rate
(4)
|
56.0%
|
|
94.4%
|
|
70.1%
|
|
-14.1%
|
|
-38.4%
|
|
Average advertising
revenue per time slot sold (5)
|
US$29,325
|
|
US$23,872
|
|
US$23,972
|
|
22.3%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in
airports
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations available
for sale (6)
|
875
|
|
752
|
|
680
|
|
28.7%
|
|
16.4%
|
|
Numbers of locations sold
(7)
|
522
|
|
504
|
|
393
|
|
32.8%
|
|
3.6%
|
|
Utilization rate (8)
|
59.7%
|
|
67.0%
|
|
57.8%
|
|
1.9%
|
|
-7.3%
|
|
Average advertising revenue per
location sold (9)
|
US$26,631
|
|
US$28,192
|
|
US$25,186
|
|
5.7%
|
|
-5.5%
|
|
|
|
|
|
|
|
|
|
|
|
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 20 minutes of
advertising content, which allows us to sell a maximum of 40 time
slots per week. The number of time slots available for sale for our
digital TV screens in airports during the period presented is
calculated by multiplying the time slots available for sale 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 sale 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 sale 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
available for sale for each of our network airlines.
(2) We define a time slot as a 12-second equivalent advertising
time unit for digital frames in airports, which is shown during
each standard advertising cycle on a weekly basis in a given
airport. Our standard 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 length of time slot and advertising program cycle of some
digital frames in several airports are different from the standard
ones. The number of time slots available for sale 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 for digital TV screens in airports, digital
TV screens on airplanes and digital frames in airports 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 respectively by the
respective number of time slots sold.
(6) We define the number of locations available for sale in
traditional media as the sum of (1) the number of light boxes and
billboards in Beijing,
Shenzhen, Wenzhou and certain
other airports (light boxes and billboards), and (2) the number of
gate bridges in certain airports (gate bridges).
(7) The number of locations sold is defined as the sum of (1)
the number of light boxes and billboards sold and (2) the number of
gate bridges sold. To calculate the number of light boxes and
billboards sold in a given airport, we first calculate the
"utilization rates of light boxes and billboards" in such airport
by dividing the "total value of light boxes and billboards sold" in
such airport by the "total value of light boxes and billboards" in
such airport. The "total value of light box and billboard
sold" in a given airport is calculated as the daily listing prices
of each light boxes and billboards sold multiplied by their
respective number of days sold during the period presented.
The "total value of light boxes and billboards" in a given
airport is calculated as the sum of quarterly listing prices of all
the light boxes and billboards during the period presented. The
number of light boxes and billboards sold in a given airport is
then calculated as the number of light boxes and billboards
available for sale in such airport multiplied by the utilization
rates of light boxes and billboards in such airport. The number of
gate bridges sold in a given airport is counted based on the
contracts.
(8) Utilization rate for traditional media in airports refers to
total locations sold as a percentage of total locations available
for sale during the period presented.
(9) Average advertising revenue per location sold is
calculated by dividing the revenues derived from all the locations
sold by the number of locations sold during the period
presented.
Earnings Conference Call Details
AirMedia will hold a conference call to discuss the first
quarter 2011 earnings at 8:00 PM U.S.
Eastern Time on May 9, 2011
(5:00 PM U.S. Pacific Time on
May 9, 2011; 8:00 AM Beijing/Hong
Kong time on May 10, 2011).
AirMedia's management team will be on the call to discuss financial
results and operational highlights and answer questions.
Conference Call Dial-in
Information
|
|
|
|
U.S.: +1 800 299 7089
|
|
U.K.: +44 207 365
8426
|
|
Hong Kong: +852 3002
1672
|
|
International: +1 617 801
9714
|
|
Pass code: AMCN
|
|
|
A replay of the call will be available for 1 week between
11:00 p.m. on May 9, 2011 and 11:00
p.m. on May 16, 2011, Eastern
Time.
Replay Dial-in
Information
|
|
|
|
U.S.: +1 888 286 8010
|
|
International: +1 617 801
6888
|
|
Pass code: 98441857
|
|
|
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 the following non-cash items: (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 the Company believes
are not indicative of its 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 Net Income (Loss) and EPS and Non-GAAP Adjusted Net Income
(Loss) and EPS", "Reconciliation of GAAP Operating Expenses to
Non-GAAP Adjusted Operating Expenses" and "Reconciliation of GAAP
Loss from Operations to Non-GAAP Adjusted Income (Loss) from
Operations" 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 frames in 35 major airports and digital
TV screens in 37 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by eight
airlines, including the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega LED screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2014 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
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 Business Outlook section and 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 reports to the U.S. Securities and Exchange
Commission, 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, Airmedia's air travel
advertising network, Airmedia may be unable to generate sufficient
cash flow from its operating activities and its prospects and
results of operations could be negatively affected; Airmedia
derives most of its revenues from the provision of air travel
advertising services, and any slowdown in the air travel
advertising industry in China may
materially and adversely affect its revenues and results of
operations; Airmedia's strategy of expanding its advertising
network by building new air travel media platforms and expanding
into traditional media in airports may not succeed, and its failure
to do so could materially reduce the attractiveness of its network
and harm its business, reputation and results of operations; if
Airmedia does not succeed in its expansion into gas station and
other outdoor media advertising, its future results of operations
and growth prospects may be materially and adversely affected; if
Airmedia's customers reduce their advertising spending or are
unable to pay Airmedia in full, in part or at all for a period of
time due to an economic downturn in China and/or elsewhere or for any other
reason, Airmedia's revenues and results of operations may be
materially and adversely affected; Airmedia faces risks related to
health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or
disrupt its operations; if Airmedia is unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow it
to operate its advertising platforms, Airmedia may be unable to
maintain or expand its network coverage and its business and
prospects may be harmed; a significant portion of Airmedia's
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, Airmedia's ability to generate revenues and its results
of operations would be materially and adversely affected;
Airmedia's limited operating history makes it difficult to evaluate
its 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.
Investor Contact:
|
|
|
|
Raymond Huang
|
|
Senior Director of Investor
Relations
|
|
AirMedia Group Inc.
|
|
Tel: +86-10-8460-8678
|
|
Email: ir@airmedia.net.cn
|
|
|
|
Caroline Straathof
|
|
IR Inside
|
|
Tel: +31-6-54624301
|
|
Email: info@irinside.com
|
|
|
AirMedia Group
Inc.
|
|
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
(In U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
March
31,
2011
|
December
31,
2010
|
|
|
ASSETS:
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
|
109,878
|
106,505
|
|
Restricted cash
|
|
6,852
|
6,798
|
|
Accounts receivable,
net
|
|
69,198
|
62,455
|
|
Prepaid concession
fees
|
|
27,056
|
31,787
|
|
Amount due from related
party
|
|
431
|
306
|
|
Other current
assets
|
|
2,568
|
2,713
|
|
Deferred tax assets -
current
|
|
4,925
|
5,050
|
|
Total current
assets
|
|
220,908
|
215,614
|
|
Property and equipment,
net
|
|
68,889
|
71,720
|
|
Long-term
investments
|
|
1,786
|
1,714
|
|
Long-term
deposits
|
|
14,809
|
13,874
|
|
Deferred tax assets -
non-current
|
|
6,567
|
6,032
|
|
Acquired intangible
assets, net
|
|
16,692
|
17,496
|
|
Goodwill
|
|
20,899
|
20,736
|
|
Total assets
|
|
350,550
|
347,186
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
(including accounts payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$38,286 and $44,830 as of December 31,
|
|
|
|
|
2010 and March 31,
2011, respectively)
|
|
45,574
|
39,020
|
|
Accrued expenses and other
current liabilities
|
|
|
|
|
(including accrued
expenses and other current liabilities of
|
|
|
|
|
the consolidated
variable interest entities without recourse
|
|
|
|
|
to AirMedia Group
Inc. $7,078 and $5,491 as of December 31,
|
|
|
|
|
2010 and March 31,
2011, respectively)
|
|
10,028
|
12,253
|
|
Deferred revenue
(including deferred revenue of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$12,751 and $13,787 as of December 31
|
|
|
|
|
2010 and March 31,
2011, respectively)
|
|
13,815
|
12,751
|
|
Income tax payable
(including income tax payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$911 and $1,739 as of December 31,
|
|
|
|
|
2010 and March 31,
2011, respectively)
|
|
2,094
|
1,263
|
|
Amounts due to related
parties (including amounts due to
|
|
|
|
|
related parties of
the consolidated variable interest entities
|
|
|
|
|
without recourse to
AirMedia Group Inc. $422 and $425 as
|
|
|
|
|
of December 31, 2010
and March 31, 2011, respectively)
|
|
425
|
422
|
|
Total current
liabilities
|
|
71,936
|
65,709
|
|
Deferred tax liability -
non-current (including deferred tax liabilities-
|
|
|
|
|
non-current of the
consolidated variable interest entities without
|
|
|
|
|
recourse to AirMedia Group
Inc. $4,761 and $4,557 as of December
|
|
|
|
|
31, 2010 and March
31, 2011, respectively)
|
|
4,557
|
4,761
|
|
Total liabilities
|
|
76,493
|
70,470
|
|
Equity
|
|
|
|
|
Ordinary shares
|
|
132
|
132
|
|
Additional paid-in
capital
|
|
278,176
|
277,676
|
|
Statutory
reserves
|
|
7,671
|
7,671
|
|
Accumulated
deficits
|
|
(32,066)
|
(28,164)
|
|
Accumulated other
comprehensive income
|
|
20,400
|
18,353
|
|
Total AirMedia Group Inc.'s
shareholders' equity
|
|
274,313
|
275,668
|
|
Noncontrolling
interests
|
|
-256
|
1,048
|
|
Total equity
|
|
274,057
|
276,716
|
|
Total liabilities and
equity
|
|
350,550
|
347,186
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In U.S. dollars in thousands,
except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2011
|
December
31,
2010
|
March
31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
61,353
|
70,762
|
48,769
|
|
Business tax and other
sales tax
|
|
(1,452)
|
(2,075)
|
(1,010)
|
|
Net
revenues
|
|
59,901
|
68,687
|
47,759
|
|
Cost of
revenues
|
|
56,195
|
54,343
|
45,523
|
|
Gross
profit
|
|
3,706
|
14,344
|
2,236
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and
marketing *
|
|
4,289
|
4,866
|
4,123
|
|
General and
administrative *
|
|
4,854
|
5,182
|
6,630
|
|
Impairment of intangible
assets
|
|
-
|
1,000
|
-
|
|
Total
operating expenses
|
|
9,143
|
11,048
|
10,753
|
|
Income/
(loss) from operations
|
|
(5,437)
|
3,296
|
(8,517)
|
|
Interest income
|
|
355
|
188
|
237
|
|
Gain on remeasurements of
fair value of cost and equity method investments (net)
|
|
-
|
-
|
919
|
|
Other income,
net
|
|
336
|
328
|
229
|
|
Income/
(loss) before income taxes and share of income on equity
method investments
|
|
(4,746)
|
3,812
|
(7,132)
|
|
Income tax benefits
(expenses)
|
|
(522)
|
418
|
(21)
|
|
Net income/ (loss) before share
of income on equity method investments
|
|
(5,268)
|
4,230
|
(7,153)
|
|
Share of income on equity
method investments
|
|
58
|
31
|
154
|
|
Net income/
(loss)
|
|
(5,210)
|
4,261
|
(6,999)
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
(1,308)
|
(849)
|
(494)
|
|
Net income/
(loss) attributable to AirMedia Group Inc.'s
shareholders
|
|
(3,902)
|
5,110
|
(6,505)
|
|
Net income/ (loss) attributable
to AirMedia Group Inc.'s shareholders per ordinary share
|
|
|
|
|
|
Basic
|
|
(0.03)
|
0.04
|
(0.05)
|
|
Diluted
|
|
(0.03)
|
0.04
|
(0.05)
|
|
Net income/ (loss) attributable
to AirMedia Group Inc.'s shareholders per ADS
|
|
|
|
|
|
Basic
|
|
(0.06)
|
0.08
|
(0.10)
|
|
Diluted
|
|
(0.06)
|
0.07
|
(0.10)
|
|
Weighted average ordinary shares
outstanding used in computing net income/ (loss) per ordinary
share - basic
|
|
131,876,085
|
131,502,583
|
131,154,704
|
|
Weighted average
ordinary shares
outstanding used in computing net
income/ (loss) per ordinary share - diluted
|
|
131,876,085
|
137,419,791
|
131,154,704
|
|
* Share-based compensation
charges included are as follow:
|
|
|
|
|
|
Selling and
marketing
|
|
281
|
370
|
514
|
|
General and
administrative
|
|
428
|
776
|
1,254
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
RECONCILIATION OF GAAP NET
INCOME/ (LOSS) AND EPS TO NON-GAAP ADJUSTED NET INCOME/ (LOSS) AND
EPS
|
|
(In U.S. dollars in thousands,
except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2011
|
December
31,
2010
|
March
31,
2010
|
|
|
|
|
|
|
|
Net income/ (loss) attributable
to AirMedia Group Inc.'s shareholders (GAAP)
|
|
(3,902)
|
5,110
|
(6,505)
|
|
Amortization of acquired
intangible assets
|
|
939
|
958
|
916
|
|
Share-based
compensation
|
|
709
|
1,146
|
1,768
|
|
|
|
|
|
|
|
Adjusted net income/ (loss)
attributable to AirMedia Group Inc.'s shareholders
(non-GAAP)
|
|
(2,254)
|
7,214
|
(3,821)
|
|
|
|
|
|
|
|
Adjusted net income/ (loss)
attributable to AirMedia Group Inc.'s shareholders per share
(non-GAAP)
|
|
|
|
|
|
Basic
|
|
(0.02)
|
0.05
|
(0.03)
|
|
Diluted
|
|
(0.02)
|
0.05
|
(0.03)
|
|
|
|
|
|
|
|
Adjusted net income/ (loss)
attributable to AirMedia Group Inc.'s shareholders per ADS
(non-GAAP)
|
|
|
|
|
|
Basic
|
|
(0.03)
|
0.11
|
(0.06)
|
|
Diluted
|
|
(0.03)
|
0.10
|
(0.06)
|
|
|
|
|
|
|
|
Shares used in computing
adjusted basic net income/ (loss) attributable to AirMedia Group
Inc.'s shareholders per share (non-GAAP)
|
|
131,876,085
|
131,502,583
|
131,154,704
|
|
Shares used in computing
adjusted diluted net income/ (loss) attributable to AirMedia Group
Inc.'s shareholders per share (non-GAAP)
|
|
131,876,085
|
137,419,791
|
131,154,704
|
|
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 ADSs used in GAAP basic
and diluted EPS calculation, where the number of shares and ADSs is
adjusted for dilution due to the share-based compensation
plan.
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
RECONCILIATION OF GAAP OPERATING
EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES
|
|
(In U.S. dollars in thousands,
except for percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2011
|
December
31,
2010
|
March
31,
2010
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
9,143
|
11,048
|
10,753
|
|
Amortization of acquired
intangible assets
|
|
939
|
958
|
916
|
|
Share-based
compensation
|
|
709
|
1,146
|
1,768
|
|
|
|
|
|
|
|
Adjusted operating expenses
(non-GAAP)
|
|
7,495
|
8,944
|
8,069
|
|
|
|
|
|
|
|
Adjusted operating expenses as a
percentage of net revenues (non-GAAP)
|
|
12.5%
|
13.0%
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
RECONCILIATION OF GAAP INCOME/
(LOSS) FROM OPERATIONS TO NON-GAAP ADJUSTED INCOME/ (LOSS) FROM
OPERATIONS
|
|
(In U.S. dollars in thousands,
except for percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2011
|
December
31,
2010
|
March
31,
2010
|
|
|
|
|
|
|
|
Income/ (loss) from
operations
|
|
(5,437)
|
3,296
|
(8,517)
|
|
Amortization of acquired
intangible assets
|
|
939
|
958
|
916
|
|
Share-based
compensation
|
|
709
|
1,146
|
1,768
|
|
|
|
|
|
|
|
Adjusted income/ (loss) from
operations (non-GAAP)
|
|
(3,789)
|
5,400
|
(5,833)
|
|
|
|
|
|
|
|
Adjusted operating margin
(non-GAAP)
|
|
-6.3%
|
7.9%
|
-12.2%
|
|
|
|
|
|
|
|
|
SOURCE AirMedia Group Inc.