BEIJING, Aug. 18, 2011 /PRNewswire-Asia/ -- 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 second
quarter ended June 30, 2011.
Second Quarter 2011 Financial and
Business Highlights
- Total revenues increased by 3.9% year-over-year to US$58.5 million.
- Net loss attributable to AirMedia's shareholders was
US$8.6 million, which included a
non-cash loss on the disposal of certain fixed assets of
US$4.2 million and an impairment of
intangible asset of US$656,000. Basic
and diluted net loss attributable to AirMedia's shareholders per
American Depositary Share ("ADS") were both US$0.13.
- Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP), which is net loss attributable to AirMedia's
shareholders excluding share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, was US$6.1
million. Adjusted basic and diluted net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) were both US$0.09.
- The Company continued generating positive operating cash flow
in excess of capital expenditures in the second quarter of 2011.
Other than restricted cash of US$6.1
million, cash increased to US$114.5
million as of June 30, 2011,
from US$106.5 million as of
December 31, 2010.
- AirMedia started to put advertisements on the interior and
exterior of the gate bridges at Terminal 3 of the Beijing Capital
International Airport on May 7, 2011
and June 13, 2011, respectively.
These advertisements on the gate bridges at Terminal 3 of the
Beijing Airport generated revenues of US$2.2
million in the second quarter of 2011.
"Our business was heavily impacted in the second quarter due to
the fact that the automobile industry was one of our top
advertising industries. The Japanese earthquake negatively affected
the supply chains of automobile manufacturers, and as a result,
many of them reduced their advertising orders in the second quarter
of 2011, especially those for new car model releases. However, we
are happy to see a strong comeback from automobile industry in the
third quarter with sizable advertising orders, including orders
from Japanese automobile manufacturers. We expect to see
advertising orders from automobile industry continue to more fully
recover in the fourth quarter of this year," commented Herman Guo, chairman and chief executive officer
of AirMedia. "At the same time, we are also making progress in
diversifying our revenue sources.
"We are also pleased with having resolved issues of delay with
gate bridge advertisements at Terminal 3 of the Beijing airport. For the third quarter of
2011, we will have advertising revenues from the Terminal 3 gate
bridges for a full quarter that we expect to be sufficient to cover
the corresponding quarterly concession fees," added Mr. Guo
"We are disappointed at the second quarter revenue results. The
impact from the automobile industry was more severe than what we
had anticipated. However, I would like to point out that our net
loss in the second quarter included non-cash charges of
US$4.9 million from the disposal of
certain fixed assets and the impairment of intangible asset. With
the recovery of automobile-related advertising and the Terminal 3
gate bridges fully contributing to our revenues, we expect to see
improvements in our bottom line results in the third quarter of
2011," Ping Sun, AirMedia's chief
financial officer, commented.
Second Quarter 2011 Financial
Results
Revenues
Total revenues by product line
(numbers in US$ 000's except for percentages):
|
|
|
|
Quarter
Ended June 30, 2011
|
% of Total
Revenues
|
|
Quarter Ended
March 31, 2011
|
% of Total
Revenues
|
|
Quarter Ended
June 30, 2010
|
% of Total
Revenues
|
|
Y/Y Growth rate
|
|
Q/Q Growth rate
|
|
Air Travel Media
Network
|
|
54,669
|
93.4%
|
|
56,973
|
92.9%
|
|
52,559
|
93.3%
|
|
4.0%
|
|
-4.0%
|
|
Digital frames in
airports
|
|
27,364
|
46.7%
|
|
30,192
|
49.2%
|
|
27,019
|
48.0%
|
|
1.3%
|
|
-9.4%
|
|
Digital TV screens in
airports
|
|
3,911
|
6.7%
|
|
5,209
|
8.5%
|
|
6,550
|
11.6%
|
|
-40.3%
|
|
-24.9%
|
|
Digital TV screens on
airplanes
|
|
5,608
|
9.6%
|
|
6,799
|
11.1%
|
|
5,872
|
10.4%
|
|
-4.5%
|
|
-17.5%
|
|
Traditional media in
airports
|
|
16,056
|
27.4%
|
|
13,901
|
22.7%
|
|
12,241
|
21.7%
|
|
31.2%
|
|
15.5%
|
|
Other revenues in air
travel
|
|
1,730
|
3.0%
|
|
872
|
1.4%
|
|
877
|
1.6%
|
|
97.3%
|
|
98.4%
|
|
Gas Station Media
Network
|
|
1,373
|
2.3%
|
|
1,799
|
2.9%
|
|
801
|
1.4%
|
|
71.4%
|
|
-23.7%
|
|
Other Media
|
|
2,488
|
4.3%
|
|
2,581
|
4.2%
|
|
2,971
|
5.3%
|
|
-16.3%
|
|
-3.6%
|
|
Total revenues
|
|
58,530
|
100.0%
|
|
61,353
|
100.0%
|
|
56,331
|
100.0%
|
|
3.9%
|
|
-4.6%
|
|
Net revenues
|
|
57,014
|
|
|
59,901
|
|
|
55,085
|
|
|
3.5%
|
|
-4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2011, many of AirMedia's automobile
advertisers delayed or cancelled their orders due to impact from
the Japanese earthquake, which resulted in a weak year-over-year
growth and a quarter-over-quarter decrease in total revenues.
Total revenues for the second quarter of 2011 reached
US$58.5 million, representing a
year-over-year increase of 3.9% from US$56.3
million and a quarter-over-quarter decrease of 4.6% from
US$61.4 million. The year-over-year
increase was due to increases in revenues from traditional media in
airports, other revenues in air travel, gas station media network
and digital frames in airports. The quarter-over-quarter decrease
was primarily due to decreases in revenues from the digital product
lines.
Revenues from digital frames in airports
Revenues from digital frames in airports for the second quarter
of 2011 increased by 1.3% year-over-year and decreased by 9.4%
quarter-over-quarter to US$27.4
million. The year-over-year increase was due to an increase
in the number of time slots sold, which was partially offset by a
decrease in the average advertising revenue per time slot sold (the
"ASP"). The quarter-over-quarter decrease was primarily due to a
decrease 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 second quarter of 2011
increased by 5.1% year-over-year and by 0.9% quarter-over-quarter
to 10,422 time slots. The year-over-year increase was due to our
continued dedicated sales efforts. The quarter-over-quarter
increase was primarily due to the lower ASP in the second quarter
of 2011. AirMedia operated digital frames in 35 airports in the
second quarter of 2011, up from 33 airports at the end of the
second quarter of 2010 and unchanged from the end of the first
quarter of 2011. The number of time slots available for sale for
the second quarter of 2011 increased by 5.2% year-over-year and by
0.8% quarter-over-quarter to 34,398 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 slight
quarter-over-quarter increase was primarily due to there being one
more operating day in the second quarter of 2011 than in the
previous quarter. The utilization rate of digital frames for the
second quarter of 2011 was 30.3%, which remained relatively
unchanged year-over-year and quarter-over-quarter.
The ASP of digital frames for the second quarter of 2011
decreased by 3.6% year-over-year and by 10.2% quarter-over-quarter
to US$2,626. The year-over-year
decrease was primarily due to changes in the mix of time slots
sold, which was partially offset by an increase in the listing
prices of our digital frames in some airports in January 2011. The number of time slots sold in
the top three airports, which have significantly higher ASPs than
the time slots sold in other airports, accounted for a much lower
percentage of total number of time slots sold in the second quarter
of 2011 than in the same period one year ago. To make up the loss
of automobile advertisers' budgets cut, AirMedia offered higher
discounts to new clients to stimulate their demands and orders. The
quarter-over-quarter decrease was primarily due to higher discounts
offered in the second quarter of 2011 than in the previous
quarter.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the second
quarter of 2011 decreased by 40.3% year-over-year and by 24.9%
quarter-over-quarter to US$3.9
million. The year-over-year and quarter-over-quarter
decreases were primarily due to decreases in the number of time
slots sold, which were partially offset by increases in the ASP of
digital TV screens in the airports.
The number of time slots sold for the second quarter of 2011
decreased by 54.4% year-over-year and by 31.4% quarter-over-quarter
to 2,438 time slots. The year-over-year and quarter-over-quarter
decreases were primarily due to a drop in demand and the higher ASP
during the second quarter of 2011, 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 second quarter of 2011
decreased by 19.6% year-over-year and by 1.8% quarter-over-quarter
to 18,446 time slots. The year-over-year decrease was 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 quarter-over-quarter decrease was primarily due to
the termination of operation of digital TV screens in Hangzhou
Xiaoshan International Airport on March 1,
2011. The utilization rate for the second quarter of 2011
decreased by 10.1 percentage points year-over-year and by 5.7
percentage points quarter-over-quarter to 13.2%, primarily due to
the decreases in the number of time slots sold, which were
partially offset by the decreases in the number of time slots
available for sale.
The ASP of digital TV screens in airports for the second quarter
of 2011 increased by 30.8% year-over-year and by 9.5%
quarter-over-quarter to US$1,604. The
year-over-year and quarter increases were primarily due to lower
discounts in the second quarter of 2011 than in the same period one
year ago and in the previous quarter, and changes in the 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 second quarter of 2011 than in the
same period one year ago and in the previous quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the second
quarter of 2011 decreased by 4.5% year-over-year and by 17.5%
quarter-over-quarter to US$5.6
million. The year-over-year and quarter-over-quarter
decreases were primarily due to decreases in the number of time
slots sold.
The number of time slots sold for the second quarter of 2011
decreased by 25.9% year-over-year and by 17.2% quarter-over-quarter
to 192 time slots. The year-over-year and quarter-over-quarter
decreases were due to a drop in demand and the higher ASP during
the second quarter of 2011, 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 second quarter of 2011 increased by 4.5%
year-over-year to 414 time slots and remained unchanged
quarter-over-quarter. The year-over-year increase was primarily due
to our operating of the digital media on Hainan Airlines'
airplanes, which was partially offset by the termination of our
operating arrangement for the digital TV screens on Xiamen
Airlines' airplanes. The utilization rate for the second quarter of
2011 decreased by 19.0 percentage points year-over-year and 9.6
percentage points quarter-over-quarter to 46.4%. 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 second
quarter of 2011 increased by 28.8% year-over-year and decreased by
0.4% quarter-over-quarter to US$29,208. The year-over-year increase in the ASP
was due to an increase in the listing prices of digital TV screens
on the airplanes of Air China and China Southern Airlines in
January 2011, lower discounts offered
in the second quarter of 2011 than in the same period one year ago
and the change in the mix of the time slots sold. The number of
time slots sold on the three largest airlines, which have
significantly higher ASPs than the time slots sold on other
airlines, accounted for a higher percentage in the second quarter
of 2011 than in the same period one year ago. The
quarter-over-quarter decrease in the ASP was primarily due to
changes in the mix of the time slots sold, partially offset by
lower discounts offered in the second quarter of 2011 than in the
previous quarter. The number of time slots sold on the three
largest airlines, which have significantly higher ASPs than the
time slots sold on the other airlines, accounted for a lower
percentage in the second quarter of 2011 than in the previous
quarter.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the second
quarter of 2011 increased by 31.2% year-over-year and by 15.5%
quarter-over-quarter to US$16.1
million, which included US$2.2
million revenues from the gate bridges at Terminal 3 of
Beijing Capital International Airport. The year-over-year and
quarter-over-quarter increases were primarily due to increases in
the number of locations sold, which were partially offset by
decreases in the ASP of traditional media in airports.
The number of locations sold for the second quarter of 2011
increased by 39.6% year-over-year and by 21.6% quarter-over-quarter
to 635 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 second quarter of
2011 increased by 26.5% year-over-year and by 1.9%
quarter-over-quarter to 892 locations. The year-over-year increase
was primarily due to the newly signed contracts for billboards and
painted advertisements on the gate bridges at Terminal 3 of Beijing
Capital International Airport 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
contracts for billboards and painted advertisements on the gate
bridges at Terminal 3 of Beijing Capital International Airport. The
utilization rate of traditional media for the second quarter of
2011 increased by 6.7 percentage points year-over-year and
decreased by 11.5 percentage points quarter-over-quarter to 71.2%.
The year-over-year and quarter-over-quarter increases were due to
the increase in the number of locations sold, partially offset by
the increase in the number of locations available for sale.
The ASP of traditional media in airports for the second quarter
of 2011 decreased by 6.0% year-over-year and by 5.1%
quarter-over-quarter to US$25,285.
The year-over-year and quarter-over-quarter decreases were
primarily due to more locations with lower listing prices sold in
the second quarter of 2011 than in the same period one year ago and
in the previous quarter.
Revenues from the gas station media
network
Revenues from the gas station media network for the second
quarter of 2011 increased by 71.4% year-over-year and decreased by
23.7% quarter-over-quarter to US$1.4
million.
AirMedia intends to substantially reduce its shares in Beijing
AirMedia Jinshi Advertising Co., Ltd., its subsidiary which
operates the gas station media network.
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 which
operates unipole signs and other outdoors media. Revenues from
other media for the second quarter of 2011 decreased by 16.3%
year-over-year and by 3.6% quarter-over-quarter to US$2.5 million.
Business tax and other sales tax
Business tax and other sales tax for the second quarter of 2011
were US$1.5 million, compared to
US$1.2 million in the same period one
year ago and US$1.5 million in the
previous quarter. For purposes of calculating the amount of
business and other sales tax, concession fees are deducted from
total revenues, as permitted under applicable PRC tax law.
Net revenues
Net revenues for the second quarter of 2011 reached US$57.0 million, representing a year-over-year
increase of 3.5% from US$55.1 million
and a quarter-over-quarter decrease of 4.8% from US$59.9 million.
Cost of Revenues
Cost of revenues for the second quarter of 2011 was US$60.8 million, representing a year-over-year
increase of 25.0% from US$48.6
million and a quarter-over-quarter increase of 8.2% from
US$56.2 million. The year-over-year
increase was primarily due to an increase in concession fees, a
non-cash loss on the disposal of certain fixed assets of
US$4.2 million, higher agency fees
paid to third-party advertising agencies, and higher depreciation
cost. The quarter-over-quarter increase was primarily due to a
non-cash loss on the disposal of certain fixed assets of
US$4.2 million and an increase in
concession fees. Cost of revenues as a percentage of net revenues
in the second quarter of 2011 was 106.6%, compared to 88.2% in the
same period one year ago and 93.8% 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 outdoors media in
its gas stations, and to other media resources owners for placing
unipole signs and other outdoors media.
Concession fees for the second quarter of 2011 increased by
18.6% year-over-year and by 4.3% quarter-over-quarter to
US$39.5 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 contracts for
billboards and painted advertisement on the gate bridges at
Terminal 3 of Beijing Capital International Airport, which had more
operational time in the second quarter of 2011. Concession fees as
a percentage of net revenues in the second quarter of 2011 was
69.3%, increasing from 60.4% in the same period one year ago and
increasing from 63.2% in the previous quarter. The year-over-year
and quarter-over-quarter increases of concession fees as a
percentage of net revenues were primarily due to the newly signed
contracts for billboards and painted advertisement on gate bridges,
which have a very low profit margin.
Gross Profit/Loss
Gross loss for the second quarter of 2011 was US$3.8 million, compared to gross profit of
US$6.5 million in the same period one
year ago and gross profit of US$3.7
million in the previous quarter.
Gross loss as a percentage of net revenues for the second
quarter of 2011 was negative 6.6%, compared to gross profit as a
percentage of net revenues of 11.8% in the same period one year ago
and gross profit as a percentage of net revenues of 6.2% in the
previous quarter. The year-over-year decrease in gross profit as a
percentage of net revenues was primarily due to the increase in
cost of revenues. The quarter-over-quarter decrease in gross profit
as a percentage of net revenues was due to the increase in cost of
revenues and the decrease in net revenues.
Operating Expenses
Operating expenses
(numbers in
US$ 000's
except for
percentages):
|
|
|
Quarter Ended
June 30, 2011
|
% of Net
Revenues
|
|
Quarter Ended
March 31, 2011
|
% of Net
Revenues
|
|
Quarter Ended
June 30, 2010
|
% of Net
Revenues
|
|
Y/Y Growth rate
|
Q/Q Growth rate
|
|
Selling and marketing
expenses
|
4,536
|
8.0%
|
|
4,289
|
7.2%
|
|
4,545
|
8.3%
|
|
-0.2%
|
5.8%
|
|
General and administrative
expenses
|
4,343
|
7.6%
|
|
4,854
|
8.1%
|
|
7,679
|
13.9%
|
|
-43.4%
|
-10.5%
|
|
Impairment of intangible
asset
|
656
|
1.1%
|
|
-
|
0.0%
|
|
-
|
0.0%
|
|
N/A
|
N/A
|
|
Total operating
expenses
|
9,535
|
16.7%
|
|
9,143
|
15.3%
|
|
12,224
|
22.2%
|
|
-22.0%
|
4.3%
|
|
Adjusted operating
expenses
(Non-GAAP)
|
6,988
|
12.3%
|
|
7,495
|
12.5%
|
|
7,914
|
14.4%
|
|
-11.7%
|
-6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses for the second quarter of 2011 were
US$9.5 million, representing a
year-over-year decrease of 22.0% from US$12.2 million and a quarter-over-quarter
increase of 4.3% from US$9.1
million.
Total operating expenses for the second quarter of 2011 included
share-based compensation expenses of US$938,000, compared to share-based compensation
expenses of US$3.4 million in the
same period one year ago and share-based compensation expenses of
US$709,000 in the previous quarter.
The year-over-year decrease in share-based compensation expenses
was primarily due to one-time share-based compensation expenses of
US$1.6 million in the second quarter
of 2010. The quarter-over-quarter increases in share-based
compensation expenses were primarily due to a re-pricing of stock
options. On June 7, 2011, to provide
better incentive to its employees, the Compensation Committee of
AirMedia's board of directors approved an adjustment to the
exercise price of certain outstanding stock options which were
granted on March 22, 2011. The
revised exercise price for each option is US$1.57 per ordinary share, or US$3.14 per ADS.
Adjusted operating expenses (non-GAAP) for the second quarter of
2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, were US$7.0
million, representing a year-over-year decrease of 11.7%
from US$7.9 million and a
quarter-over-quarter decrease of 6.8% from US$7.5 million. Adjusted operating expenses as a
percentage of net revenues (non-GAAP) in the second quarter of 2011
was 12.3%, compared to 14.4% in the same period one year ago and
12.5% 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 second quarter of 2011
were US$4.5 million, including
share-based compensation expenses of US$284,000. This remained relatively unchanged
year-over-year and increased by 5.8% quarter-over-quarter from
US$4.3 million in the previous
quarter. The year-over-year change was primarily due to higher
professional fees, higher expenses related to the expansion of the
gas station media network and higher sales commissions for direct
sales force, which were partially offset by lower share-based
compensation expenses. The quarter-over-quarter increase was
primarily due to higher professional fees.
General and administrative expenses for the second quarter of
2011 were US$4.3 million, including
share-based compensation expenses of US$654,000. This represented a year-over-year
decrease of 43.4% from US$7.7 million
and a quarter-over-quarter decrease of 10.5% from US$4.9 million. The year-over-year decrease was
primarily due to lower share-based compensation expenses, lower
bad-debt provisions and lower professional fees. The
quarter-over-quarter decrease was primarily due to lower bad-debt
provisions, which was partially offset by higher share-based
compensation expenses.
AirMedia recorded an impairment of intangible asset of
US$656,000 in the second quarter of
2011 for the fire prevention bulletin board advertisement business
due to a decrease in the total projected discounted cash flow from
its operations. AirMedia holds 75% equity interest in this
subsidiary.
Loss from
Operations
Loss from operations for the second quarter of 2011 was
US$13.3 million, as compared to loss
from operations of US$5.8 million in
the same period one year ago and loss from operations of
US$5.4 million in the previous
quarter.
Adjusted loss from operations (non-GAAP) for the second quarter
of 2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, was US$10.8
million, compared to adjusted loss from operations
(non-GAAP) of US$1.4 million in the
same period one year ago and adjusted loss from operations
(non-GAAP) of US$3.8 million in the
previous quarter. Adjusted operating margin (non-GAAP) for the
second quarter of 2011, which excluded the effect of share-based
compensation expenses, amortization of acquired intangible assets,
and impairment of intangible assets, was negative 18.9%, compared
to negative 2.6% in the same period one year ago and negative 6.3%
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 benefits for the second quarter of 2011 were
US$2.5 million, compared to income
tax expenses of US$19,000 in the same
period one year ago and income tax expenses of US$522,000 in the previous quarter. AirMedia has
calculated income tax provision using the estimated Annual
Effective Tax Rate approach in the second quarter of 2011, a switch
of practice from applying actual effective tax rate previously. The
estimated Annual Effective Tax Rate is 11.4% for 2011.
Net Loss Attributable to
AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for the second
quarter of 2011 was US$8.6 million,
compared to net loss attributable to AirMedia's shareholders of
US$4.7 million in the same period one
year ago and net loss attributable to AirMedia's shareholders of
US$3.9 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders
per ADS for the second quarter of 2011 was US$0.13, compared to basic net loss attributable
to AirMedia's shareholders per ADS of US$0.07 in the same period one year ago and basic
net loss attributable to AirMedia's shareholders per ADS of
US$0.06 in the previous quarter. The
diluted net loss attributable to AirMedia's shareholders per ADS
for the second quarter of 2011 was US$0.13, compared to diluted net loss
attributable to AirMedia's shareholders per ADS of US$0.07 in the same period one year ago and
diluted net loss attributable to AirMedia's shareholders per ADS of
US$0.06 in the previous quarter.
Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) for the second quarter of 2011, which is net loss
attributable to AirMedia's shareholders excluding share-based
compensation expenses, amortization of acquired intangible assets,
and impairment of intangible assets, was US$6.1 million, compared to adjusted net loss
attributable to AirMedia's shareholders (non-GAAP) of US$424,000 in the same period one year ago and
adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) of US$2.3 million in the
previous quarter. Basic adjusted net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) for the second quarter
of 2011 was US$0.09, compared to
basic adjusted net loss attributable to AirMedia's shareholders per
ADS (non-GAAP) of US$0.01 in the same
period one year ago and basic adjusted net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) of US$0.03 in the previous quarter. Diluted adjusted
net loss attributable to AirMedia's shareholders per ADS (non-GAAP)
for the second quarter of 2011 was US$0.09, compared to diluted adjusted net loss
attributable to AirMedia's shareholders per ADS (non-GAAP) of
US$0.01 in the same period one year
ago and diluted adjusted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.03 in the previous quarter.
Please refer to the attached table captioned "Reconciliation Of
GAAP Net Loss and EPS To Non-GAAP Adjusted Net Loss and EPS" for a
reconciliation of net loss attributable to AirMedia's shareholders
and basic and diluted net loss attributable to AirMedia's
shareholders per ADS under U.S. GAAP to adjusted net loss
attributable to AirMedia's shareholders (non-GAAP) and basic and
diluted adjusted net loss attributable to AirMedia's shareholders
per ADS (non-GAAP).
Cash and Restricted
Cash
Other than restricted cash of US$6.1
million, cash totaled US$114.5
million as of June 30, 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 August 14, 2011, AirMedia had repurchased an
aggregate of 1,341,741 ADSs on the open market for a total
consideration of US$5.1 million.
Management Buy-back Announcement
During the period from May 26,
2011 to June 30, 2011,
AirMedia's chairman and chief executive officer, Herman Guo, purchased a total of 422,124 ADSs at
an average price of US$3.45 per ADS,
with an approximate value of US$1,456,693 from the public market. The
purchases were made under the account of Mr. Guo's wife.
Update on Advertisements on
the Gate Bridges at Terminal
3 of the Beijing
Airport
At Terminal 3 of the Beijing Capital International Airport,
AirMedia started to put advertisements on the interior of the gate
bridges on May 7, 2011 and on the
exterior of the gate bridges on June 13,
2011. Advertisements on the gate Bridges at Terminal 3 of
the Beijing Airport generated revenues of US$2.2 million in the second quarter of 2011.
AirMedia currently expects that the revenues from the gate
bridges at Terminal 3 of the Beijing Capital International Airport
in the third quarter of 2011 will be sufficient to cover their
quarterly concession fees during the corresponding period.
Other Recent Developments
On August 12, 2011, AirMedia
commenced operations of two Mega-size LED screens at the newly
opened Terminal 3 of Changsha Huanghua International Airport
in Hunan province, which were
installed above the domestic security check areas.
On July 22, 2011, AirMedia
commenced operations of four sets of digital TV screens at the
security check areas in Guiyang Longdongbao International Airport
in Guizhou province.
On July 22, 2011, AirMedia
commenced operations of four sets of digital TV screens at the
security check areas in Haikou Meilan International Airport in
Hainan province.
On July 8, 2011, AirMedia
commenced operations of 21 sets of stand-alone digital frames and
56 sets of digital TV screens in Nanchang Changbei International
Airport in Jiangxi province.
Business Outlook
AirMedia currently expects that its total revenues for the third
quarter of 2011 will range from US$67.0
million to US$69.0 million, representing a year-over-year
increase of 10.6% to 13.9% from the same period in 2010 and a
quarter-over-quarter increase of 14.5% to 17.9% from the previous
quarter.
AirMedia currently expects that concession fees will be
approximately US$41.5 million in the
third quarter of 2011. The quarter-over-quarter increase from the
second quarter of 2011 will be primarily due to the full quarter
operation of advertisements on the gate bridges at Terminal 3 of
the 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 June 30, 2011
|
|
Quarter
Ended March 31, 2011
|
|
Quarter
Ended June 30, 2010
|
|
Y/Y Growth
Rate
|
|
Q/Q Growth
Rate
|
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
35
|
|
35
|
|
33
|
|
6.1%
|
|
0.0%
|
|
Number of time slots
available for sale (2)
|
34,398
|
|
34,139
|
|
32,708
|
|
5.2%
|
|
0.8%
|
|
Number of time slots sold
(3)
|
10,422
|
|
10,327
|
|
9,918
|
|
5.1%
|
|
0.9%
|
|
Utilization rate
(4)
|
30.3%
|
|
30.2%
|
|
30.3%
|
|
0.0%
|
|
0.1%
|
|
Average advertising
revenue per time slot sold (5)
|
US$2,626
|
|
US$2,924
|
|
US$2,724
|
|
-3.6%
|
|
-10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
37
|
|
37
|
|
37
|
|
0.0%
|
|
0.0%
|
|
Number of time slots
available for sale (1)
|
18,446
|
|
18,780
|
|
22,950
|
|
-19.6%
|
|
-1.8%
|
|
Number of time slots sold
(3)
|
2,438
|
|
3,555
|
|
5,344
|
|
-54.4%
|
|
-31.4%
|
|
Utilization rate
(4)
|
13.2%
|
|
18.9%
|
|
23.3%
|
|
-10.1%
|
|
-5.7%
|
|
Average advertising
revenue per time slot sold (5)
|
US$1,604
|
|
US$1,465
|
|
US$1,226
|
|
30.8%
|
|
9.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on
airplanes
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in
operation
|
8
|
|
8
|
|
8
|
|
0.0%
|
|
0.0%
|
|
Number of time slots
available for sale (1)
|
414
|
|
414
|
|
396
|
|
4.5%
|
|
0.0%
|
|
Number of time slots sold
(3)
|
192
|
|
232
|
|
259
|
|
-25.9%
|
|
-17.2%
|
|
Utilization rate
(4)
|
46.4%
|
|
56.0%
|
|
65.4%
|
|
-19.0%
|
|
-9.6%
|
|
Average advertising
revenue per time slot sold (5)
|
US$29,208
|
|
US$29,325
|
|
US$22,672
|
|
28.8%
|
|
-0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in
airports
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations available
for sale (6)
|
892
|
|
875
|
|
705
|
|
26.5%
|
|
1.9%
|
|
Numbers of locations sold
(7)
|
635
|
|
522
|
|
455
|
|
39.6%
|
|
21.6%
|
|
Utilization rate (8)
|
71.2%
|
|
59.7%
|
|
64.5%
|
|
6.7%
|
|
11.5%
|
|
Average advertising revenue per
location sold (9)
|
US$25,285
|
|
US$26,631
|
|
US$26,903
|
|
-6.0%
|
|
-5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- A time slot is defined 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. AirMedia's 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 the Company to sell a maximum
of 40 time slots per week. The number of time slots available for
sale for the 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 AirMedia had operations in each airport and then
calculating the sum of all the time slots available for sale for
each of the Company's network airports. The length of AirMedia's
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
AirMedia had operations on each airline and then calculating the
sum of all the time slots available for sale for each of its
network airlines.
- A time slot is defined 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. AirMedia's standard airport advertising programs are shown
repeatedly on a daily basis during a given week in 10-minute
cycles, which allows the Company 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 the
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 the Company
had operations in each airport and then calculating the sum of all
the time slots available for each of its network airports.
- 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.
- 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.
- 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 the Company's 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.
- The number of locations available for sale in traditional media
is defined 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).
- 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, the "utilization rates of
light boxes and billboards" in such airport is first calculated 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.
- 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.
- 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 second
quarter 2011 earnings at 9:00 PM U.S.
Eastern Time on August 18, 2011
(6:00 PM U.S. Pacific Time on
August 18, 2011; 9:00 AM Beijing/Hong
Kong time on August 19, 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.:
|
+1 866 713 8395
|
|
U.K.:
|
+44 207 365 8426
|
|
Hong Kong:
|
+852 3002 1672
|
|
International:
|
+1 617 597 5309
|
|
Pass code:
|
AMCN
|
|
|
|
A replay of the call will be available for 1 week between
12:00 a.m. on August 19, 2011 and 11:59
p.m. on August 25, 2011, Eastern
Time.
Replay Dial-in Information
U.S.:
|
+1 888
286 8010
|
|
International:
|
+1 617
801 6888
|
|
Pass code:
|
83173056
|
|
|
|
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, (2) amortization of acquired intangible assets, and (3)
impairment of 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 Loss and EPS and Non-GAAP Adjusted Net 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 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 outdoors 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
|
|
|
AirMedia Group
Inc.
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
(In U.S. dollars in
thousands)
|
|
|
|
June 30,
|
December 31,
|
|
|
|
2011
|
2010
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
|
114,471
|
106,505
|
|
Restricted cash
|
|
6,106
|
6,798
|
|
Accounts receivable,
net
|
|
69,407
|
62,455
|
|
Prepaid concession
fees
|
|
21,600
|
31,787
|
|
Amount due from related
party
|
|
144
|
306
|
|
Other current
assets
|
|
4,665
|
2,713
|
|
Deferred tax assets -
current
|
|
4,984
|
5,050
|
|
Total current
assets
|
|
221,377
|
215,614
|
|
Property and equipment,
net
|
|
63,124
|
71,720
|
|
Long-term
investments
|
|
1,851
|
1,714
|
|
Long-term
deposits
|
|
14,612
|
13,874
|
|
Deferred tax assets -
non-current
|
|
7,444
|
6,032
|
|
Acquired intangible
assets, net
|
|
15,297
|
17,496
|
|
Goodwill
|
|
21,174
|
20,736
|
|
Total assets
|
|
344,879
|
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 $50,409 as of December 31,
|
|
|
|
|
2010 and June 30,
2011, respectively)
|
|
51,243
|
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 $4,924 as of December 31,
|
|
|
|
|
2010 and June 30,
2011, respectively)
|
|
9,708
|
12,253
|
|
Deferred revenue
(Including deferred revenue of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$12,751 and $15,806 as of December 31
|
|
|
|
|
2010 and June 30,
2011, respectively)
|
|
15,807
|
12,751
|
|
Income tax payable
(Including income tax payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$911 and nil as of December 31,
|
|
|
|
|
2010 and June 30,
2011, respectively)
|
|
-
|
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 $431 as
|
|
|
|
|
of December 31, 2010
and June 30, 2011, respectively)
|
|
431
|
422
|
|
Total current
liabilities
|
|
77,189
|
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 $4,180 as of December
|
|
|
|
|
31, 2010 and June
30, 2011, respectively)
|
|
4,180
|
4,761
|
|
Total liabilities
|
|
81,369
|
70,470
|
|
Equity
|
|
|
|
|
Ordinary shares
|
|
129
|
132
|
|
Additional paid-in
capital
|
|
274,234
|
277,676
|
|
Statutory
reserves
|
|
7,671
|
7,671
|
|
Accumulated
deficits
|
|
(40,706)
|
(28,164)
|
|
Accumulated other
comprehensive income
|
|
23,796
|
18,353
|
|
Total AirMedia Group Inc.'s
shareholders' equity
|
|
265,124
|
275,668
|
|
Noncontrolling
interests
|
|
(1,614)
|
1,048
|
|
Total equity
|
|
263,510
|
276,716
|
|
Total liabilities and
equity
|
|
344,879
|
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
|
|
|
|
June 30,
2011
|
March 31,
2011
|
June 30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
58,530
|
61,353
|
56,331
|
|
Business tax and other
sales tax
|
|
(1,516)
|
(1,452)
|
(1,246)
|
|
Net
revenues
|
|
57,014
|
59,901
|
55,085
|
|
Cost of
revenues
|
|
60,788
|
56,195
|
48,612
|
|
Gross
(loss)/profit
|
|
(3,774)
|
3,706
|
6,473
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and
marketing *
|
|
4,536
|
4,289
|
4,545
|
|
General and
administrative *
|
|
4,343
|
4,854
|
7,679
|
|
Impairment of intangible
assets
|
|
656
|
-
|
-
|
|
Total
operating expenses
|
|
9,535
|
9,143
|
12,224
|
|
Loss from
operations
|
|
(13,309)
|
(5,437)
|
(5,751)
|
|
Interest income
|
|
386
|
355
|
137
|
|
Other income,
net
|
|
395
|
336
|
84
|
|
Loss
before income taxes and share of income on equity method
investments
|
|
(12,528)
|
(4,746)
|
(5,530)
|
|
Income tax benefits
(expenses)
|
|
2,497
|
(522)
|
(19)
|
|
Net loss before share of income
on equity method investments
|
|
(10,031)
|
(5,268)
|
(5,549)
|
|
Share of income on equity
method investments
|
|
40
|
58
|
48
|
|
Net
loss
|
|
(9,991)
|
(5,210)
|
(5,501)
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
(1,351)
|
(1,308)
|
(767)
|
|
Net loss
attributable to AirMedia Group Inc.'s shareholders
|
|
(8,640)
|
(3,902)
|
(4,734)
|
|
Net loss attributable to
AirMedia Group Inc.'s shareholders per ordinary share
|
|
|
|
|
|
Basic
|
|
(0.07)
|
(0.03)
|
(0.04)
|
|
Diluted
|
|
(0.07)
|
(0.03)
|
(0.04)
|
|
Net loss attributable to
AirMedia Group Inc.'s shareholders per ADS
|
|
|
|
|
|
Basic
|
|
(0.13)
|
(0.06)
|
(0.07)
|
|
Diluted
|
|
(0.13)
|
(0.06)
|
(0.07)
|
|
Weighted average ordinary shares
outstanding used in computing net loss per ordinary share -
basic
|
|
130,815,205
|
131,876,085
|
131,169,981
|
|
Weighted average
ordinary shares
outstanding used in computing net loss
per ordinary share - diluted
|
|
130,815,205
|
131,876,085
|
131,169,981
|
|
* Share-based compensation
charges included are as follow:
|
|
|
|
|
|
Selling and
marketing
|
|
284
|
281
|
927
|
|
General and
administrative
|
|
654
|
428
|
2,450
|
|
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
RECONCILIATION OF GAAP NET
(LOSS) AND EPS TO NON-GAAP ADJUSTED NET (LOSS) AND
EPS
|
|
(In U.S. dollars in thousands,
except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2011
|
March 31,
2011
|
June 30,
2010
|
|
|
|
|
|
|
|
Net loss attributable to
AirMedia Group Inc.'s shareholders (GAAP)
|
|
(8,640)
|
(3,902)
|
(4,734)
|
|
Amortization of acquired
intangible assets
|
|
953
|
939
|
933
|
|
Share-based
compensation
|
|
938
|
709
|
3,377
|
|
Impairment of intangible
assets
|
|
656
|
-
|
-
|
|
Adjusted net loss attributable
to AirMedia Group Inc.'s shareholders (Non-GAAP)
|
|
(6,093)
|
(2,254)
|
(424)
|
|
|
|
|
|
|
|
Adjusted net loss attributable
to AirMedia Group Inc.'s shareholders per share
(Non-GAAP)
|
|
|
|
|
|
Basic
|
|
(0.05)
|
(0.02)
|
0.00
|
|
Diluted
|
|
(0.05)
|
(0.02)
|
0.00
|
|
|
|
|
|
|
|
Adjusted net loss attributable
to AirMedia Group Inc.'s shareholders per ADS
(Non-GAAP)
|
|
|
|
|
|
Basic
|
|
(0.09)
|
(0.03)
|
(0.01)
|
|
Diluted
|
|
(0.09)
|
(0.03)
|
(0.01)
|
|
|
|
|
|
|
|
Shares used in computing
adjusted basic net loss attributable to AirMedia Group Inc.'s
shareholders per share (Non-GAAP)
|
|
130,815,205
|
131,876,085
|
131,169,981
|
|
Shares used in computing
adjusted diluted net loss attributable to AirMedia Group Inc.'s
shareholders per share (Non-GAAP)
|
|
130,815,205
|
131,876,085
|
131,169,981
|
|
|
|
|
|
|
|
Note: The Non-GAAP
adjusted net loss per
share and per
ADS are
computed using Non-GAAP
net adjusted loss
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
|
|
|
|
June 30,
2011
|
March 31,
2011
|
June 30,
2010
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
9,535
|
9,143
|
12,224
|
|
Amortization of acquired
intangible assets
|
|
953
|
939
|
933
|
|
Share-based
compensation
|
|
938
|
709
|
3,377
|
|
Impairment of intangible
assets
|
|
656
|
-
|
-
|
|
Adjusted operating expenses
(Non-GAAP)
|
|
6,988
|
7,495
|
7,914
|
|
|
|
|
|
|
|
Adjusted operating expenses as a
percentage of net revenues (Non-GAAP)
|
|
12.3%
|
12.5%
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
RECONCILIATION OF GAAP (LOSS)
FROM OPERATIONS TO NON-GAAP ADJUSTED (LOSS) FROM
OPERATIONS
|
|
(In U.S. dollars in thousands,
except for percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2011
|
March 31,
2011
|
June 30,
2010
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(13,309)
|
(5,437)
|
(5,751)
|
|
Amortization of acquired
intangible assets
|
|
953
|
939
|
933
|
|
Share-based
compensation
|
|
938
|
709
|
3,377
|
|
Impairment of intangible
assets
|
|
656
|
-
|
-
|
|
Adjusted loss from operations
(Non-GAAP)
|
|
(10,762)
|
(3,789)
|
(1,441)
|
|
|
|
|
|
|
|
Adjusted operating margin
(Non-GAAP)
|
|
-18.9%
|
-6.3%
|
-2.6%
|
|
|
|
|
|
|
|
|
SOURCE AirMedia Group Inc.