BEIJING, Nov. 9, 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 third
quarter ended September 30, 2011.
Third Quarter 2011 Financial and Business
Highlights
- Total revenues increased by 15.7% year-over-year and by 19.8%
quarter-over-quarter to US$70.1
million, beating the high end of the Company's guidance by
US$1.1 million.
- Net loss attributable to AirMedia's shareholders was
US$1.7 million. Basic and diluted net
loss attributable to AirMedia's shareholders per American
Depositary Share ("ADS") were both US$0.03.
- Adjusted net income attributable to AirMedia's shareholders
(non-GAAP), which is net income attributable to AirMedia's
shareholders excluding share-based compensation expenses,
amortization of acquired intangible assets and impairment of
intangible assets, was US$1.6
million. Adjusted basic and diluted net income 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 third quarter of 2011.
Other than restricted cash of US$6.2
million, cash increased to US$115.5
million as of September 30,
2011, from US$106.5 million as
of December 31, 2010.
- During the period from August 22,
2011 to September 30, 2011,
AirMedia's chairman and chief executive officer, Herman Guo, along with other management members
purchased AirMedia's ADSs from the public market. Mr. Guo purchased
a total of 162,090 ADSs at an average price of US$2.56 per ADS, with an approximate value of
US$414,677 from the public
market.
"We are pleased that the Company has made significant progress
toward our goal of achieving profitable growth. Two of the specific
issues that impacted our performance in the first half of 2011 have
been resolved. First, advertising from the automobile industry
recovered better than we had anticipated. Second, our contracts for
the Terminal 3 gate bridges in Beijing Capital International
Airport started to contribute to net income in the third quarter of
2011," commented Herman Guo,
chairman and chief executive officer of AirMedia.
"We fully intend to stay on track to demonstrate the advantage
of our business model with operating leverage," Mr. Guo added. "My
continued buy-backs of the Company's shares in the third quarter
reflect my strong confidence in the Company."
"The recovered top line growth and better-than-expected non-GAAP
adjusted net income validate our growth initiatives and cost
control efforts. Looking ahead into the fourth quarter, which is
generally the strongest quarter of the year, we expect our current
upward momentum to continue. Our business model with operating
leverage will enable us to harvest profits from the incremental
revenues after breaking even," Ping
Sun, AirMedia's chief financial officer, commented.
Third Quarter 2011 Financial
Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
AirMedia Group
Inc.
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UNAUDITED CONDENSED DATA OF
REVENUES
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(In U.S. dollars in
thousands)
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Quarter Ended
September 30,
2011
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% of Total
Revenues
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Quarter Ended
June 30,
2011
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% of Total
Revenues
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Quarter Ended
September 30,
2010
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% of Total
Revenues
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|
Y/Y Growth
rate
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Q/Q Growth
rate
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|
Air Travel Media
Network
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64,085
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91.4%
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54,669
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93.4%
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56,829
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93.7%
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12.8%
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17.2%
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Digital frames in
airports
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30,696
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43.8%
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27,364
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46.7%
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31,126
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51.4%
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-1.4%
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12.2%
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Digital TV screens in
airports
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3,447
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4.9%
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3,911
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6.7%
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7,297
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12.0%
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-52.8%
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-11.9%
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Digital TV screens on
airplanes
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6,794
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9.7%
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5,608
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9.6%
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5,239
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8.6%
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29.7%
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21.1%
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Traditional media in
airports
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21,344
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30.4%
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16,056
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27.4%
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12,070
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19.9%
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76.8%
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32.9%
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Other revenues in air
travel
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1,804
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2.6%
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1,730
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3.0%
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1,097
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1.8%
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64.4%
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4.3%
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Gas Station Media
Network
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3,753
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5.4%
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1,373
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2.3%
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1,128
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1.9%
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232.7%
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173.3%
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Other Media
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2,270
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3.2%
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2,488
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4.3%
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2,641
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4.4%
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-14.0%
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-8.8%
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Total revenues
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70,108
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100.0%
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58,530
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100.0%
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60,598
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100.0%
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15.7%
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19.8%
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Net revenues
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68,715
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57,014
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58,974
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16.5%
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20.5%
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Total revenues for the third quarter of 2011 reached
US$70.1 million, representing a
year-over-year increase of 15.7% from US$60.6 million and a quarter-over-quarter
increase of 19.8% from US$58.5
million. The year-over-year increase was due to increases in
revenues from traditional media in airports, gas station media
network, digital TV screens on airplanes, and other revenues in air
travel. The quarter-over-quarter increase was primarily due to
increases in revenues from most of the product lines other than
digital TV screens in airports and other media.
Revenues from digital frames in airports
Revenues from digital frames in airports for the third quarter
of 2011 decreased by 1.4% year-over-year and increased by 12.2%
quarter-over-quarter to US$30.7
million. The year-over-year decrease was due to a decrease
in the number of time slots sold, which was partially offset by an
increase in the average advertising revenue per time slot sold (the
"ASP"). The quarter-over-quarter increase was due to increases in
both the number of time slots sold and 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 third quarter of 2011
decreased by 19.9% year-over-year and increased by 10.0%
quarter-over-quarter to 11,461 time slots. The year-over-year
decrease was primarily due to the increase in ASP which resulted in
fewer time slots sold. The quarter-over-quarter increase was
primarily due to the comeback in advertising budget from the
automobile industry and increasing demand from other sectors.
AirMedia operated digital frames in 35 airports in the third
quarter of 2011, up from 34 airports at the end of the third
quarter of 2010 and unchanged from the end of the second quarter of
2011. The number of time slots available for sale for the third
quarter of 2011 increased by 2.2% year-over-year and by 2.6%
quarter-over-quarter to 35,292 time slots. The year-over-year
increase was primarily due to the increase in the number of
airports in AirMedia's digital frame network. The
quarter-over-quarter increase was primarily due to the commencement
of operations of AirMedia's stand-alone digital frames in Nanchang
Changbei International Airport, the commencement of operations of
AirMedia's Mega-size LEDs in Changsha Huanghua International
Airport and there being one additional operating day in the third
quarter of 2011 than in the previous quarter. The utilization rate
for the third quarter of 2011 decreased by 8.9 percentage points
year-over-year and increased by 2.2 percentage points
quarter-over-quarter to 32.5%. The year-over-year decrease was
primarily due to the decrease in the number of time slots sold and
the increase in the number of time slots available. The
quarter-over-quarter increase was primarily due to the increase in
the number of time slots sold, which was partially offset by the
increase in the number of time slots available.
The ASP of digital frames for the third quarter of 2011
increased by 23.0% year-over-year and by 2.0% quarter-over-quarter
to US$2,678. The year-over-year
increase was primarily due to an increase in the listing prices of
our digital frames in some airports in January 2011 and lower discounts offered in the
third 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 third quarter of 2011 than in the previous
quarter.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the third
quarter of 2011 decreased by 52.8% year-over-year and by 11.9%
quarter-over-quarter to US$3.4
million. The year-over-year decrease was primarily due to a
decrease in the number of time slots sold, which was partially
offset by an increase in the ASP of digital TV screens in the
airports. The quarter-over-quarter decrease was primarily due to
decreases in both the number of time slots sold and the ASP of
digital TV screens in the airports.
The number of time slots sold for the third quarter of 2011
decreased by 63.1% year-over-year and by 5.1% quarter-over-quarter
to 2,313 time slots. The year-over-year and quarter-over-quarter
decreases were primarily due to a drop in demand. The number of
time slots available for sale for the third quarter of 2011
decreased by 22.4% year-over-year and increased by 1.2%
quarter-over-quarter to 18,664 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
increase was primarily due to there being one more operating day in
the third quarter of 2011 than in the previous quarter. The
utilization rate for the third quarter of 2011 decreased by 13.6
percentage points year-over-year and by 0.8 percentage points
quarter-over-quarter to 12.4%, primarily due to the decreases in
the number of time slots sold.
The ASP of digital TV screens in airports for the third quarter
of 2011 increased by 27.9% year-over-year and decreased by 7.1%
quarter-over-quarter to US$1,490. The
year-over-year increase was primarily due to lower discounts in the
third quarter of 2011 than in the same period one year ago, 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 third quarter
of 2011 than in the same period one year ago. The
quarter-over-quarter decrease was primarily due to higher discounts
in the third quarter of 2011 than 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 lower
percentage of total number of time slots sold in the third quarter
of 2011 than in the previous quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the third
quarter of 2011 increased by 29.7% year-over-year and by 21.1%
quarter-over-quarter to US$6.8
million. The year-over-year increase was primarily due to an
increase in the ASP of digital TV screen on airplane. The
quarter-over-quarter increase was primarily due to an increase in
the number of time slots sold.
The number of time slots sold for the third quarter of 2011
remained relatively unchanged year-over-year and increased by 32.3%
quarter-over-quarter to 254 time slots. The quarter-over-quarter
increase was primarily due to the comeback in advertising budget
from the automobile industry, increasing demand from other sectors
and the lower ASP during the third quarter of 2011, which resulted
in more time slots sold. The number of time slots available for
sale for the third quarter of 2011 was 414 time slots, which
remained relatively unchanged year-over-year and
quarter-over-quarter. The utilization rate for the third quarter of
2011 remained relatively unchanged year-over-year and increased by
15.0 percentage points quarter-over-quarter to 61.4%. The
quarter-over-quarter increase was primarily due to the increase in
the number of time slots sold.
The ASP of digital TV screens on airplanes for the third quarter
of 2011 increased by 30.7% year-over-year and decreased by 8.4%
quarter-over-quarter to US$26,748.
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 and lower discounts offered in the third 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 and higher discounts offered in the third 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
much lower percentage in the third quarter of 2011 than in the
previous quarter.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the third
quarter of 2011 increased by 76.8% year-over-year and by 32.9%
quarter-over-quarter to US$21.3
million. The year-over-year and quarter-over-quarter
increases were primarily due to increases in both the number of
locations sold and the ASP of traditional media in airports.
The number of locations sold for the third quarter of 2011
increased by 44.5% year-over-year and by 9.4% quarter-over-quarter
to 695 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 third quarter of
2011 increased by 20.5% year-over-year and by 1.3%
quarter-over-quarter to 904 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 more billboards and light boxes
in Wenzhou Yongqiang Airport. The quarter-over-quarter increase was
primarily due to more billboards and light boxes in Wenzhou
Yongqiang Airport. The utilization rate of traditional media for
the third quarter of 2011 increased by 12.8 percentage points
year-over-year and by 5.7 percentage points quarter-over-quarter to
76.9%. 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 third quarter
of 2011 increased by 22.4% year-over-year and by 21.5%
quarter-over-quarter to US$30,711.
The year-over-year and quarter-over-quarter decreases were
primarily due to more locations with higher listing prices sold in
the third 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 third
quarter of 2011 increased by 232.7% year-over-year and by 173.3%
quarter-over-quarter to US$3.8
million.
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 third quarter of 2011 decreased by 14.0%
year-over-year and by 8.8% quarter-over-quarter to US$2.3 million.
Business tax and other sales tax
Business tax and other sales tax for the third quarter of 2011
were US$1.4 million, compared to
US$1.6 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 third quarter of 2011 reached US$68.7 million, representing a year-over-year
increase of 16.5% from US$59.0
million and a quarter-over-quarter increase of 20.5% from
US$57.0 million.
Cost of Revenues
Cost of revenues for the third quarter of 2011 was US$61.7 million, representing a year-over-year
increase of 24.9% from US$49.4
million and a quarter-over-quarter increase of 1.5% from
US$60.8 million. The year-over-year
and quarter-over-quarter increases were primarily due to increases
in concession fees, and higher agency fees paid to third-party
advertising agencies. Cost of revenues as a percentage of net
revenues in the third quarter of 2011 was 89.8%, compared to 83.8%
in the same period one year ago and 106.6% 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 third quarter of 2011 increased by 24.8%
year-over-year and by 5.2% quarter-over-quarter to US$41.5 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 full quarter operation of advertisements on
the gate bridges at Terminal 3 of the Beijing Capital International
Airport. Concession fees as a percentage of net revenues in the
third quarter of 2011 was 60.4%, increasing from 56.4% in the same
period one year ago and decreasing from 69.3% in the previous
quarter. The year-over-year increase of concession fees as a
percentage of net revenues was primarily due to the newly signed
contracts for billboards and painted advertisement on gate bridges,
which have a very low profit margin. The quarter-over-quarter
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.
Gross Profit/Loss
Gross profit for the third quarter of 2011 was US$7.0 million, compared to gross profit of
US$9.5 million in the same period one
year ago and gross loss of US$3.8
million in the previous quarter.
Gross profit as a percentage of net revenues for the third
quarter of 2011 was 10.2%, compared to gross profit as a percentage
of net revenues of 16.2% in the same period one year ago and gross
loss as a percentage of net revenues of negative 6.6% in the
previous quarter. The year-over-year decrease in gross profit as a
percentage of net revenues was primarily due to the increase in
cost of revenues. The quarter-over-quarter increase in gross profit
as a percentage of net revenues was due to the increase in net
revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
AirMedia Group
Inc.
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UNAUDITED CONDENSED DATA OF
OPERATING EXPENSES
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(In U.S. dollars in
thousands)
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Quarter
Ended September 30, 2011
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% of Net
Revenues
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Quarter
Ended June 30, 2011
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% of Net
Revenues
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Quarter
Ended September 30, 2010
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% of Net
Revenues
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Y/Y Growth
rate
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Q/Q Growth
rate
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Selling and marketing
expenses
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4,429
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6.4%
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4,536
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8.0%
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4,578
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7.8%
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-3.3%
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-2.4%
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General and administrative
expenses
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5,562
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8.1%
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4,343
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7.6%
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5,155
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8.7%
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7.9%
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28.1%
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Impairment of intangible
asset
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-
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0.0%
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656
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1.1%
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-
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0.0%
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N/A
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-100.0%
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Total operating
expenses
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9,991
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14.5%
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9,535
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16.7%
|
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9,733
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16.5%
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2.7%
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4.8%
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Adjusted operating
expenses
(Non-GAAP)
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6,659
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9.7%
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6,988
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12.3%
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7,111
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12.1%
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-6.4%
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-4.7%
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Total operating expenses for the third quarter of 2011 were
US$10.0 million, representing a
year-over-year increase of 2.7% from US$9.7
million and a quarter-over-quarter increase of 4.8% from
US$9.5 million.
Total operating expenses for the third quarter of 2011 included
share-based compensation expenses of US$2.4
million, compared to share-based compensation expenses of
US$1.7 million in the same period one
year ago and share-based compensation expenses of US$938,000 in the previous quarter. The
year-over-year and quarter-over-quarter increases in share-based
compensation were primarily due to a re-pricing of stock options.
On August 23, 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 July 2, 2007, July 20, 2007, November
29, 2007, July 10, 2010, and
March 22, 2011. The revised exercise
price for each option is US$1.15 per
ordinary share, or US$2.3 per
ADS.
Adjusted operating expenses (non-GAAP) for the third quarter of
2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, were US$6.7
million, representing a year-over-year decrease of 6.4% from
US$7.1 million and a
quarter-over-quarter decrease of 4.7% from US$7.0 million. Adjusted operating expenses as a
percentage of net revenues (non-GAAP) in the third quarter of 2011
was 9.7%, compared to 12.1% in the same period one year ago and
12.3% 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 third quarter of 2011
were US$4.4 million, including
share-based compensation expenses of US$679,000. This represented a year-over-year
decrease of 3.3% from US$4.6 million
and a quarter-over-quarter decrease of 2.4% from US$4.5 million. The year-over-year decrease was
primarily due to lower expenses related to the expansion of the gas
station media network and lower marketing expenses, which were
partially offset by higher sales commissions for direct sales
force. The quarter-over-quarter increase was primarily due to lower
expenses related to the expansion of the gas station media network,
which were partially offset by higher share-based compensation
expenses.
General and administrative expenses for the third quarter of
2011 were US$5.6 million, including
share-based compensation expenses of US$1.7
million. This represented a year-over-year increase of 7.9%
from US$5.2 million and a
quarter-over-quarter increase of 28.1% from US$4.3 million. The year-over-year and
quarter-over-quarter increases were primarily due to higher
share-based compensation expenses and higher bad-debt
provisions.
Income/Loss from Operations
Loss from operations for the third quarter of 2011 was
US$3.0 million, as compared to loss
from operations of US$189,000 in the
same period one year ago and loss from operations of US$13.3 million in the previous quarter.
Adjusted income from operations (non-GAAP) for the third quarter
of 2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, was US$333,000,
compared to adjusted income from operations (non-GAAP) of
US$2.4 million in the same period one
year ago and adjusted loss from operations (non-GAAP) of
US$10.8 million in the previous
quarter. Adjusted operating margin (non-GAAP) for the third quarter
of 2011, which excluded the effect of share-based compensation
expenses, amortization of acquired intangible assets, and
impairment of intangible assets, was 0.5%, compared to 4.1% in the
same period one year ago and negative 18.9% 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
Income tax benefits for the third quarter of 2011 were
US$205,000, compared to income tax
benefits of US$357,000 in the same
period one year ago and income tax benefits of US$2.5 million in the previous quarter.
Net Income/Loss Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for the third
quarter of 2011 was US$1.7 million,
compared to net income attributable to AirMedia's shareholders of
US$1.2 million in the same period one
year ago and net loss attributable to AirMedia's shareholders of
US$8.6 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders
per ADS for the third quarter of 2011 was US$0.03, compared to basic net income
attributable to AirMedia's shareholders per ADS of US$0.02 in the same period one year ago and basic
net loss attributable to AirMedia's shareholders per ADS of
US$0.13 in the previous quarter. The
diluted net loss attributable to AirMedia's shareholders per ADS
for the third quarter of 2011 was US$0.03, compared to diluted net income
attributable to AirMedia's shareholders per ADS of US$0.02 in the same period one year ago and
diluted net loss attributable to AirMedia's shareholders per ADS of
US$0.13 in the previous quarter.
Adjusted net income attributable to AirMedia's shareholders
(non-GAAP) for the third quarter of 2011, which is net income
attributable to AirMedia's shareholders excluding share-based
compensation expenses, amortization of acquired intangible assets,
and impairment of intangible assets, was US$1.6 million, compared to adjusted net income
attributable to AirMedia's shareholders (non-GAAP) of US$3.8 million in the same period one year ago
and adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) of US$6.1 million in the
previous quarter. Basic adjusted net income attributable to
AirMedia's shareholders per ADS (non-GAAP) for the third quarter of
2011 was US$0.03, compared to basic
adjusted net income attributable to AirMedia's shareholders per ADS
(non-GAAP) of US$0.06 in the same
period one year ago and basic adjusted net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) of US$0.09 in the previous quarter. Diluted adjusted
net income attributable to AirMedia's shareholders per ADS
(non-GAAP) for the third quarter of 2011 was US$0.03, compared to diluted adjusted net income
attributable to AirMedia's shareholders per ADS (non-GAAP) of
US$0.06 in the same period one year
ago and diluted adjusted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.09 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$6.2
million, cash totaled US$115.5
million as of September 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 positive
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 November 6, 2011, AirMedia had repurchased an
aggregate of 2,509,155 ADSs on the open market for a total
consideration of US$8.1 million.
Update on Management Buy-back
During the period from August 22,
2011 to September 30, 2011,
AirMedia's chairman and chief executive officer, Herman Guo, purchased a total of 162,090 ADSs at
an average price of US$2.56 per ADS,
which amounted to an aggregate of approximately US$414,677 from the public market. Previously,
during the period from May 26, 2011
to June 30, 2011, Mr. Guo, had
purchased a total of 422,124 ADSs at an average price of
US$3.45 per ADS, which amounted to an
aggregate of approximately US$1,456,693 from the public market.
Other Recent Developments
AirMedia renewed its concession rights contract to operate
digital TV screens on the airplanes of Shanghai Airlines for 8
years from December 1, 2011 to
November 30, 2019.
On August 22, 2011, AirMedia
commenced operations of 50 digital TV screens at the newly opened
Terminal 2 of Changsha Huanghua International Airport in
Hunan province.
Business Outlook
AirMedia currently expects its total revenues for the fourth
quarter of 2011 to range from US$79.0
million to US$81.0 million, representing a year-over-year
increase of 11.6% to 14.5% from the same period in 2010 and a
quarter-over-quarter increase of 12.7% to 15.5% from the previous
quarter.
AirMedia currently expects its concession fees to be
approximately US$43.0 million in the
fourth quarter of 2011. The quarter-over-quarter increase from the
third quarter of 2011 will be primarily due to the concession fee
commitments under concession rights contracts that are expected to
be signed or renewed.
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
AirMedia Group
Inc.
|
|
SELECTED OPERATING
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30, 2011
|
|
Quarter Ended June 30,
2011
|
|
Quarter Ended
September 30, 2010
|
|
Y/Y Growth
Rate
|
|
Q/Q Growth
Rate
|
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
35
|
|
35
|
|
34
|
|
2.9%
|
|
0.0%
|
|
Number of time slots
available for sale (2)
|
35,292
|
|
34,398
|
|
34,538
|
|
2.2%
|
|
2.6%
|
|
Number of time slots sold
(3)
|
11,461
|
|
10,422
|
|
14,301
|
|
-19.9%
|
|
10.0%
|
|
Utilization rate
(4)
|
32.5%
|
|
30.3%
|
|
41.4%
|
|
-8.9%
|
|
2.2%
|
|
Average advertising
revenue per time slot sold (5)
|
US$2,678
|
|
US$2,626
|
|
US$2,177
|
|
23.0%
|
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in
airports
|
|
|
|
|
|
|
|
|
|
|
Number of airports in
operation
|
37
|
|
37
|
|
38
|
|
-2.6%
|
|
0.0%
|
|
Number of time slots
available for sale (1)
|
18,664
|
|
18,446
|
|
24,064
|
|
-22.4%
|
|
1.2%
|
|
Number of time slots sold
(3)
|
2,313
|
|
2,438
|
|
6,264
|
|
-63.1%
|
|
-5.1%
|
|
Utilization rate
(4)
|
12.4%
|
|
13.2%
|
|
26.0%
|
|
-13.6%
|
|
-0.8%
|
|
Average advertising
revenue per time slot sold (5)
|
US$1,490
|
|
US$1,604
|
|
US$1,165
|
|
27.9%
|
|
-7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on
airplanes
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in
operation
|
8
|
|
8
|
|
9
|
|
-11.1%
|
|
0.0%
|
|
Number of time slots
available for sale (1)
|
414
|
|
414
|
|
416
|
|
-0.5%
|
|
0.0%
|
|
Number of time slots sold
(3)
|
254
|
|
192
|
|
256
|
|
-0.8%
|
|
32.3%
|
|
Utilization rate
(4)
|
61.4%
|
|
46.4%
|
|
61.5%
|
|
-0.1%
|
|
15.0%
|
|
Average advertising
revenue per time slot sold (5)
|
US$26,748
|
|
US$29,208
|
|
US$20,467
|
|
30.7%
|
|
-8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in
airports
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations available
for sale (6)
|
904
|
|
892
|
|
750
|
|
20.5%
|
|
1.3%
|
|
Numbers of locations sold
(7)
|
695
|
|
635
|
|
481
|
|
44.5%
|
|
9.4%
|
|
Utilization rate (8)
|
76.9%
|
|
71.2%
|
|
64.1%
|
|
12.8%
|
|
5.7%
|
|
Average advertising revenue per
location sold (9)
|
US$30,711
|
|
US$25,285
|
|
US$25,093
|
|
22.4%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) 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.
(2)
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.
(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 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.
(6) 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).
(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, 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.
(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 third
quarter 2011 earnings at 8:00 PM U.S.
Eastern Time on November 09, 2011
(5:00 PM U.S. Pacific Time on
November 9, 2011; 9:00 AM Beijing/Hong
Kong time on November 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.:
|
+1 866 519
4004
|
|
U.K.:
|
08082346646
|
|
Hong Kong:
|
+852 2475
0994
|
|
International:
|
+1 718
354 1231
|
|
Pass code:
|
AMCN
|
|
|
|
A replay of the call will be available for 1 week between
11:00 p.m. on November 9, 2011 and 11:59
p.m. on November 16, 2011, Eastern
Time.
Replay Dial-in Information
U.S.:
|
+1 866
214 5335
|
|
International:
|
+1 718
354 1232
|
|
Pass code:
|
22562273
|
|
|
|
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 nine
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)
|
|
|
|
|
|
|
|
|
|
September 30, 2011
|
|
December 31, 2010
|
|
|
|
Unaudited
|
|
Audited
|
|
ASSETS:
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash
|
|
115,527
|
|
106,505
|
|
Restricted cash
|
|
6,188
|
|
6,798
|
|
Accounts receivable,
net
|
|
81,473
|
|
62,455
|
|
Prepaid concession
fees
|
|
19,194
|
|
31,787
|
|
Amount due from related
party
|
|
146
|
|
306
|
|
Other current
assets
|
|
4,653
|
|
2,713
|
|
Deferred tax assets -
current
|
|
5,210
|
|
5,050
|
|
Total current
assets
|
|
232,391
|
|
215,614
|
|
Property and equipment,
net
|
|
60,670
|
|
71,720
|
|
Long-term
investments
|
|
1,950
|
|
1,714
|
|
Long-term
deposits
|
|
14,761
|
|
13,874
|
|
Deferred tax assets -
non-current
|
|
9,404
|
|
6,032
|
|
Acquired intangible
assets, net
|
|
14,553
|
|
17,496
|
|
Goodwill
|
|
21,458
|
|
20,736
|
|
Total assets
|
|
355,187
|
|
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 $57,624 as of December 31,
|
|
|
|
|
|
2010 and September
30, 2011, respectively)
|
|
59,194
|
|
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 $5,535 as of December 31,
|
|
|
|
|
|
2010 and September
30, 2011, respectively)
|
|
10,046
|
|
12,253
|
|
Deferred revenue
(Including deferred revenue of the
|
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
|
AirMedia Group Inc.
$12,751 and $15,167 as of December 31
|
|
|
|
|
|
2010 and September
30, 2011, respectively)
|
|
15,167
|
|
12,751
|
|
Income tax payable
(Including income tax payable of the
|
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
|
AirMedia Group Inc.
$911 and $1,332 as of December 31,
|
|
|
|
|
|
2010 and September
30, 2011, respectively)
|
|
1,332
|
|
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 $437 as
|
|
|
|
|
|
of December 31, 2010
and September 30, 2011, respectively)
|
|
437
|
|
422
|
|
Total current
liabilities
|
|
86,176
|
|
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 $3,992 as of December
|
|
|
|
|
|
31, 2010 and
September 30, 2011, respectively)
|
|
3,992
|
|
4,761
|
|
Total liabilities
|
|
90,168
|
|
70,470
|
|
Equity
|
|
|
|
|
|
Ordinary shares
|
|
128
|
|
132
|
|
Additional paid-in
capital
|
|
274,395
|
|
277,676
|
|
Statutory
reserves
|
|
7,671
|
|
7,671
|
|
Accumulated
deficits
|
|
(42,389)
|
|
(28,164)
|
|
Accumulated other
comprehensive income
|
|
27,232
|
|
18,353
|
|
Total AirMedia Group Inc.'s
shareholders' equity
|
|
267,037
|
|
275,668
|
|
Noncontrolling
interests
|
|
(2,018)
|
|
1,048
|
|
Total equity
|
|
265,019
|
|
276,716
|
|
Total liabilities and
equity
|
|
355,187
|
|
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
|
|
|
|
September 30,
2011
|
June 30,
2011
|
September 30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
70,108
|
58,530
|
60,598
|
|
Business tax and other
sales tax
|
|
(1,393)
|
(1,516)
|
(1,624)
|
|
Net
revenues
|
|
68,715
|
57,014
|
58,974
|
|
Cost of
revenues
|
|
61,723
|
60,788
|
49,430
|
|
Gross profit
(loss)
|
|
6,992
|
(3,774)
|
9,544
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and
marketing *
|
|
4,429
|
4,536
|
4,578
|
|
General and
administrative *
|
|
5,562
|
4,343
|
5,155
|
|
Impairment of
intangible assets
|
|
-
|
656
|
-
|
|
Total
operating expenses
|
|
9,991
|
9,535
|
9,733
|
|
Loss from
operations
|
|
(2,999)
|
(13,309)
|
(189)
|
|
Interest income
|
|
254
|
386
|
132
|
|
Other income,
net
|
|
401
|
395
|
299
|
|
Income
(Loss) before income taxes and share of income on equity method
investments
|
|
(2,344)
|
(12,528)
|
242
|
|
Income tax
benefits
|
|
205
|
2,497
|
357
|
|
Net income (loss) before share
of income on equity method investments
|
|
(2,139)
|
(10,031)
|
599
|
|
Share of income on equity
method investments
|
|
75
|
40
|
57
|
|
Net income
(loss)
|
|
(2,064)
|
(9,991)
|
656
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
(381)
|
(1,351)
|
(556)
|
|
Net income
(loss) attributable to AirMedia Group Inc.'s
shareholders
|
|
(1,683)
|
(8,640)
|
1,212
|
|
Net income (loss) attributable
to AirMedia Group Inc.'s shareholders per ordinary share
|
|
|
|
|
|
Basic
|
|
(0.01)
|
(0.07)
|
0.01
|
|
Diluted
|
|
(0.01)
|
(0.07)
|
0.01
|
|
Net income (loss) attributable
to AirMedia Group Inc.'s shareholders per ADS
|
|
|
|
|
|
Basic
|
|
(0.03)
|
(0.13)
|
0.02
|
|
Diluted
|
|
(0.03)
|
(0.13)
|
0.02
|
|
Weighted average ordinary shares
outstanding used in computing net income (loss) per ordinary
share - basic
|
|
128,978,404
|
130,815,205
|
131,178,183
|
|
Weighted average
ordinary shares
outstanding used in computing net
income (loss) per ordinary share - diluted
|
|
128,978,404
|
130,815,205
|
132,105,497
|
|
* Share-based compensation
charges included are as follow:
|
|
|
|
|
|
Selling and
marketing
|
|
679
|
284
|
613
|
|
General and
administrative
|
|
1,706
|
654
|
1,067
|
|
|
|
|
|
|
|
|
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
|
|
|
|
September 30,
2011
|
June 30,
2011
|
September 30,
2010
|
|
|
|
|
|
|
|
Net income(loss) attributable to
AirMedia Group Inc.'s shareholders (GAAP)
|
|
(1,683)
|
(8,640)
|
1,212
|
|
Amortization of acquired
intangible assets
|
|
947
|
953
|
942
|
|
Share-based
compensation
|
|
2,385
|
938
|
1,680
|
|
Impairment of intangible
assets
|
|
-
|
656
|
-
|
|
Adjusted net income(loss)
attributable to AirMedia Group Inc.'s shareholders
(Non-GAAP)
|
|
1,649
|
(6,093)
|
3,834
|
|
|
|
|
|
|
|
Adjusted net income(loss)
attributable to AirMedia Group Inc.'s shareholders per share
(Non-GAAP)
|
|
|
|
|
|
Basic
|
|
0.01
|
(0.05)
|
0.03
|
|
Diluted
|
|
0.01
|
(0.05)
|
0.03
|
|
|
|
|
|
|
|
Adjusted net income(loss)
attributable to AirMedia Group Inc.'s shareholders per ADS
(Non-GAAP)
|
|
|
|
|
|
Basic
|
|
0.03
|
(0.09)
|
0.06
|
|
Diluted
|
|
0.03
|
(0.09)
|
0.06
|
|
|
|
|
|
|
|
Shares used in computing
adjusted basic net income(loss) attributable to AirMedia Group
Inc.'s shareholders per share (Non-GAAP)
|
|
128,978,404
|
130,815,205
|
131,178,183
|
|
Shares used in computing
adjusted diluted net income(loss) attributable to AirMedia Group
Inc.'s shareholders per share (Non-GAAP)
|
|
128,978,404
|
130,815,205
|
132,105,497
|
|
|
|
|
|
|
|
Note: The Non-GAAP
adjusted net income (loss)
per share and per ADS are
computed using Non-GAAP net adjusted income
(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
|
|
|
|
September 30,
2011
|
June 30,
2011
|
September 30,
2010
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
9,991
|
9,535
|
9,733
|
|
Amortization of acquired
intangible assets
|
|
947
|
953
|
942
|
|
Share-based
compensation
|
|
2,385
|
938
|
1,680
|
|
Impairment of intangible
assets
|
|
-
|
656
|
-
|
|
Adjusted operating expenses
(Non-GAAP)
|
|
6,659
|
6,988
|
7,111
|
|
|
|
|
|
|
|
Adjusted operating expenses as a
percentage of net revenues (Non-GAAP)
|
|
9.7%
|
12.3%
|
12.1%
|
|
|
|
|
|
|
|
|
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
|
|
|
|
September 30,
2011
|
June 30,
2011
|
September 30,
2010
|
|
|
|
|
|
|
|
Income(Loss) from
operations
|
|
(2,999)
|
(13,309)
|
(189)
|
|
Amortization of acquired
intangible assets
|
|
947
|
953
|
942
|
|
Share-based
compensation
|
|
2,385
|
938
|
1,680
|
|
Impairment of intangible
assets
|
|
-
|
656
|
-
|
|
Adjusted income(loss) from
operations (Non-GAAP)
|
|
333
|
(10,762)
|
2,433
|
|
|
|
|
|
|
|
Adjusted operating margin
(Non-GAAP)
|
|
0.5%
|
-18.9%
|
4.1%
|
|
|
|
|
|
|
|
|
SOURCE AirMedia Group Inc.