BEIJING, March 12, 2012 /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 fourth
quarter ended December 31, 2011.
Fourth Quarter 2011 Financial and Business
Highlights
- Total revenues increased by 24.1% year-over-year and by 25.3%
quarter-over-quarter to US$87.8
million, beating the high end of the Company's already
raised guidance by US$1.8
million.
- Revenues from the gas station media network increased by 281.5%
year-over-year and by 58.5% quarter-over-quarter to US$5.9 million.
- Net income attributable to AirMedia's shareholders was
US$4.6 million. Basic and diluted net
income attributable to AirMedia's shareholders per American
Depositary Share ("ADS") were both US$0.07.
- 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, impairment of goodwill
and impairment of intangible assets, was US$7.2 million. Adjusted basic and diluted net
income attributable to AirMedia's shareholders per ADS (non-GAAP)
were both US$0.11.
Fiscal Year 2011 Financial
Highlights
- Total revenues increased by 17.5% year-over-year to
US$277.8 million.
- Net loss attributable to AirMedia's shareholders was
US$9.6 million. Basic and diluted net
loss attributable to AirMedia's shareholders per ADS were both
US$0.15.
- 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, impairment of goodwill
and impairment of intangible assets, was US$468,000. Adjusted basic and diluted income
attributable to AirMedia's shareholders per ADS (non-GAAP) were
both US$0.01.
"AirMedia has demonstrated strong resilience to significant
adverse market events. We emerged stronger and more competitive
after overcoming each challenge. Our solid quarterly earnings are,
again, a validation of the leverage business model that we have
been building. With a leading market position in the air travel
advertising sector, AirMedia has become the right choice for
airports in China. The recent
renewals of some major contracts reflect the value and synergy of
our nationwide advertising network," commented Herman Guo, chairman and chief executive officer
of AirMedia.
"In 2012, we will focus on further demonstrating the earnings
power of our business model. More importantly, we will lay out the
foundation for future growth. One initiative is to expand the
nationwide coverage of our mega-size LEDs with strong financial
discipline. There are high levels of demand for our mega-size LEDs
and we have significant pricing power in most locations. We have
recently obtained concession rights to operate mega-size LEDs in
the Chengdu and Xi'an airports. We will carefully try to
replicate our success from our existing locations to these new
locations," Mr. Guo added.
"We are pleased to have delivered strong revenue growth and
record quarterly income from operations in the past three years in
the fourth quarter of 2011. It sets us on a good track toward
achieving profitable growth in 2012. Our revenue growth expectation
is built on our strong market position and the continuous expansion
of our customer base. With the recent renewals of major concession
rights contracts, we believe that the vast majority of our
concession fees are under control for the next three years,"
Ping Sun, AirMedia's chief financial
officer, commented.
Fourth Quarter 2011 Financial
Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
|
|
Quarter
Ended December 31,2011
|
% of
Total Revenues
|
|
Quarter
Ended September 30,2011
|
% of
Total Revenues
|
|
Quarter
Ended December 31, 2010
|
% of
Total Revenues
|
|
Y/Y
Growth rate
|
|
Q/Q
Growth rate
|
Air
Travel Media Network
|
|
79,434
|
90.4%
|
|
64,085
|
91.4%
|
|
66,634
|
94.2%
|
|
19.2%
|
|
24.0%
|
Digital frames in airports
|
|
38,287
|
43.6%
|
|
30,696
|
43.8%
|
|
32,653
|
46.1%
|
|
17.3%
|
|
24.7%
|
Digital TV screens in airports
|
|
9,370
|
10.7%
|
|
3,447
|
4.9%
|
|
8,586
|
12.1%
|
|
9.1%
|
|
171.8%
|
Digital TV screens on airplanes
|
|
7,533
|
8.6%
|
|
6,794
|
9.7%
|
|
9,597
|
13.6%
|
|
-21.5%
|
|
10.9%
|
Traditional media in airports
|
|
22,234
|
25.3%
|
|
21,344
|
30.4%
|
|
14,209
|
20.1%
|
|
56.5%
|
|
4.2%
|
Other revenues in air travel
|
|
2,010
|
2.2%
|
|
1,804
|
2.6%
|
|
1,589
|
2.3%
|
|
26.5%
|
|
11.4%
|
Gas
Station Media Network
|
|
5,948
|
6.8%
|
|
3,753
|
5.4%
|
|
1,559
|
2.2%
|
|
281.5%
|
|
58.5%
|
Other
Media
|
|
2,448
|
2.8%
|
|
2,270
|
3.2%
|
|
2,569
|
3.6%
|
|
-4.7%
|
|
7.8%
|
Total
revenues
|
|
87,830
|
100.0%
|
|
70,108
|
100.0%
|
|
70,762
|
100.0%
|
|
24.1%
|
|
25.3%
|
Net
revenues
|
|
84,994
|
|
|
68,715
|
|
|
68,687
|
|
|
23.7%
|
|
23.7%
|
Total revenues for the fourth quarter of 2011 reached
US$87.8 million, representing a
year-over-year increase of 24.1% from US$70.8 million and a quarter-over-quarter
increase of 25.3% from US$70.1
million. The year-over-year increase was due to increases in
revenues from most of the Company's product lines other than
digital TV screens on airplanes and other media. The
quarter-over-quarter increase was due to increases in revenues from
all of the Company's product
lines.
Revenues from digital frames in airports
Revenues from digital frames in airports for the fourth quarter
of 2011 increased by 17.3% year-over-year and increased by 24.7%
quarter-over-quarter to US$38.3
million. The year-over-year increase was due to increases in
both the average advertising revenue per time slot sold (the "ASP")
and the number of time slots sold. The quarter-over-quarter
increase was primarily due to an increase in the number of time
slots sold. 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 fourth quarter of 2011
increased by 4.8% year-over-year and by 23.8% quarter-over-quarter
to 14,189 time slots. The year-over-year increase was due to
continued sales efforts and growing acceptance of AirMedia's
digital frames. The quarter-over-quarter increase was primarily due
to the continued comeback in advertising budget from the automobile
industry and a seasonally strong quarter in the fourth quarter.
AirMedia operated digital frames in 34 airports in the fourth
quarter of 2011, unchanged from the end of the fourth quarter of
2010 and down from 35 airports at the end of the third quarter of
2011. The number of time slots available for sale for the fourth
quarter of 2011 increased by 1.4% year-over-year and by 0.4%
quarter-over-quarter to 35,423 time slots. The utilization rate for
the fourth quarter of 2011 increased by 1.4 percentage points
year-over-year and by 7.6 percentage points quarter-over-quarter to
40.1%. The year-over-year and quarter-over-quarter increases were
primarily due to the increases in the number of time slots
sold.
The ASP of digital frames for the fourth quarter of 2011
increased by 11.8% year-over-year and by 0.7% quarter-over-quarter
to US$2,698. 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
fourth quarter of 2011 than in the same period one year ago.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the fourth
quarter of 2011 increased by 9.1% year-over-year and by 171.8%
quarter-over-quarter to US$9.4
million. The year-over-year increase was primarily due to an
increase in the ASP of digital TV screens in the airports, which
was partially offset by a decrease in the number of time slots
sold. 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 fourth quarter of 2011
decreased by 13.7% year-over-year and increased by 165.2%
quarter-over-quarter to 6,133 time slots. The year-over-year
decrease was primarily due to a drop in demand from advertisers and
an increase in the ASP of digital TV screens in airports in the
fourth quarter of 2011 than in the same period one year ago. The
quarter-over-quarter increase was primarily due to the continued
comeback in advertising budget from the automobile industry and a
seasonally strong quarter in the fourth quarter. The number of time
slots available for sale for the fourth quarter of 2011 decreased
by 24.4% year-over-year and by 2.8% quarter-over-quarter to 18,138
time slots. The year-over-year decrease was primarily due to the
fact that after it became the operator of CCTV's Air Channel,
AirMedia shortened advertising time within each one-hour program to
20 minutes from 25 minutes to better attract air travelers'
attention. The quarter-over-quarter decrease was primarily due to a
decrease in the number of airports in AirMedia's digital TV screen
network. AirMedia operated digital TV screens in 36 airports in the
fourth quarter of 2011, down from 38 airports at the end of the
fourth quarter of 2010 and down from 37 airports in the third
quarter of 2011. The utilization rate for the fourth quarter of
2011 increased by 4.2 percentage points year-over-year and by 21.4
percentage points quarter-over-quarter to 33.8%. The year-over-year
increase was primarily due to the decrease in the number of time
slots available for sale. The quarter-over-quarter increase was
primarily due to the increase in the number of time slots sold and
the decrease in the number of time slots available for sale.
The ASP of digital TV screens in airports for the fourth quarter
of 2011 increased by 26.4% year-over-year and by 2.6%
quarter-over-quarter to US$1,528. The
year-over-year increase was primarily due to lower discounts in the
fourth quarter of 2011 than in the same period one year ago. The
quarter-over-quarter increase was primarily due to a change 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 fourth quarter of 2011 than in the
previous quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the fourth
quarter of 2011 decreased by 21.5% year-over-year and increased by
10.9% quarter-over-quarter to US$7.5
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 screen on airplanes.
The quarter-over-quarter increase was primarily due to an increase
in the ASP of digital TV screen on airplanes.
The number of time slots sold for the fourth quarter of 2011
decreased by 45.8% year-over-year and by 14.2% quarter-over-quarter
to 218 time slots. The year-over-year decrease was primarily due to
a drop in demand from advertisers and an increase in the ASP of
digital TV screens on airplanes in the fourth quarter of 2011 than
in the same period one year ago. The quarter-over-quarter decrease
was primarily an increase in the ASP of digital TV screens on
airplanes in the fourth quarter of 2011 than in the previous
quarter, which resulted in fewer time slots sold. The number
of time slots available for sale for the fourth quarter of 2011 was
414 time slots, which decreased by 2.8% year-over-year and remained
unchanged quarter-over-quarter. The utilization rate for the fourth
quarter of 2011 decreased by 41.7 percentage points year-over-year
and by 8.7 percentage points quarter-over-quarter to 52.7%. 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 fourth
quarter of 2011 increased by 44.8% year-over-year and by 29.2%
quarter-over-quarter to US$34,555.
The year-over-year increase in the ASP was primarily due to an
increase in the listing prices of digital TV screens on the
airplanes operated by Air China and China Southern Airlines in
January 2011 and lower discounts
offered in the fourth quarter of 2011 than in the same period one
year ago. The quarter-over-quarter increase in the ASP was
primarily due to a change in the mix of the time slots sold and
lower discounts offered in the fourth 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 higher
percentage in the fourth quarter of 2011 than in the previous
quarter.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the fourth
quarter of 2011 increased by 56.5% year-over-year and by 4.2%
quarter-over-quarter to US$22.2
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 fourth quarter of 2011
increased by 40.3% year-over-year and by 1.7% quarter-over-quarter
to 707 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 fourth quarter of
2011 increased by 26.3% year-over-year and by 5.1%
quarter-over-quarter to 950 locations. The year-over-year increase
was primarily due to the addition of billboards and light boxes on
the gate bridges at Terminal 3 of Beijing Airport, in Wenzhou
Yongqiang Airport, and in some other airports during the year of
2011. The quarter-over-quarter increase was primarily due to newly
acquired billboards and light boxes. The utilization rate of
traditional media for the fourth quarter of 2011 increased by 7.4
percentage points year-over-year and decreased by 2.5 percentage
points quarter-over-quarter to 74.4%. The year-over-year increase
was due to the increase in the number of locations sold, partially
offset by the increase in the number of locations available for
sale. The quarter-over-quarter decrease was primarily due to the
increase in the number of locations available for sale, partially
offset by the increase in the number of locations sold.
The ASP of traditional media in airports for the fourth quarter
of 2011 increased by 11.5% year-over-year and by 2.4%
quarter-over-quarter to US$31,448.
The year-over-year and quarter-over-quarter decreases were
primarily due to more locations with higher listing prices sold in
the fourth 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 fourth
quarter of 2011 increased by 281.5% year-over-year and by 58.5%
quarter-over-quarter to US$5.9
million due to continued sales efforts and growing
acceptance of AirMedia's 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 fourth quarter of 2011 decreased by 4.7%
year-over-year and increased by 7.8% quarter-over-quarter to
US$2.4 million. The year-over-year
decrease was primarily due to a drop in demand from real estate
advertisers. The quarter-over-quarter increase was primarily due to
a seasonally strong quarter in the fourth quarter of 2011.
Business tax and other sales tax
Business tax and other sales tax for the fourth quarter of 2011
were US$2.8 million, compared to
US$2.1 million in the same period one
year ago and US$1.4 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 fourth quarter of 2011 reached US$85.0 million, representing a year-over-year
increase of 23.7% from US$68.7
million and a quarter-over-quarter increase of 23.7% from
US$68.7
million.
Cost of Revenues
Cost of revenues for the fourth quarter of 2011 was US$65.8 million, representing a year-over-year
increase of 21.0% from US$54.3
million and a quarter-over-quarter increase of 6.5% from
US$61.7 million. The year-over-year
increase was primarily due to an increase in concession fees and
higher agency fees paid to third-party advertising agencies. The
quarter-over-quarter increase was primarily due to higher agency
fees paid to third-party advertising agencies. Cost of revenues as
a percentage of net revenues in the fourth quarter of 2011 was
77.4%, down from 79.1% in the same period one year ago and 89.8% 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 fourth quarter of 2011 increased by
15.5% year-over-year and decreased by 0.5% quarter-over-quarter to
US$41.3 million. The year-over-year
increase was primarily due to newly signed or renewed concession
rights contracts during the period. Concession fees as a percentage
of net revenues in the fourth quarter of 2011 was 48.6%, decreasing
from 52.1% in the same period one year ago and decreasing from
60.4% in the previous quarter. The year-over-year and
quarter-over-quarter decreases of concession fees as a percentage
of net revenues were 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
Gross profit for the fourth quarter of 2011 was US$19.2 million, compared to gross profit of
US$14.3 million in the same period
one year ago and gross profit of US$7.0
million in the previous quarter.
Gross profit as a percentage of net revenues for the fourth
quarter of 2011 was 22.6%, compared to gross profit as a percentage
of net revenues of 20.9% in the same period one year ago and gross
profit as a percentage of net revenues of 10.2% in the previous
quarter. The year-over-year and quarter-over-quarter improvements
in gross profit as a percentage of net revenues were primarily due
to the fact that net revenues grew faster than cost of
revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
|
Quarter
Ended December 31,2011
|
% of
Net Revenues
|
|
Quarter
Ended September 30,2011
|
% of
Net Revenues
|
|
Quarter
Ended December 31, 2010
|
% of
Net Revenues
|
|
Y/Y
Growth rate
|
Q/Q
Growth rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
and marketing expenses
|
4,984
|
5.9%
|
|
4,429
|
6.4%
|
|
4,866
|
7.1%
|
|
2.4%
|
12.5%
|
General
and administrative expenses
|
7,245
|
8.5%
|
|
5,562
|
8.1%
|
|
5,182
|
7.5%
|
|
39.8%
|
30.3%
|
Impairment
of goodwill
|
1,003
|
1.2%
|
|
-
|
0.0%
|
|
-
|
0.0%
|
|
N/A
|
N/A
|
Impairment
of intangible asset
|
-
|
0.0%
|
|
-
|
0.0%
|
|
1,000
|
1.5%
|
|
-100.0%
|
N/A
|
Total
operating expenses
|
13,232
|
15.6%
|
|
9,991
|
14.5%
|
|
11,048
|
16.1%
|
|
19.8%
|
32.4%
|
Adjusted
operating expenses
(non-GAAP)
|
10,695
|
12.6%
|
|
6,659
|
9.7%
|
|
7,944
|
11.6%
|
|
34.6%
|
60.6%
|
Total operating expenses for the fourth quarter of 2011 were
US$13.2 million, representing a
year-over-year increase of 19.8% from US$11.0 million and a quarter-over-quarter
increase of 32.4% from US$10.0
million.
Total operating expenses for the fourth quarter of 2011 included
share-based compensation expenses of US$582,000, compared to share-based compensation
expenses of US$1.1 million in the
same period one year ago and share-based compensation expenses of
US$2.4 million in the previous
quarter. The year-over-year decrease in share-based compensation
expenses was primarily due to the fact that all of the stock
options granted on November 29, 2007
had fully vested on November 29,
2010. The quarter-over-quarter decrease in share-based
compensation was primarily due to a re-pricing of stock options on
August 23, 2011, which resulted in
additional one-time share-based compensation expenses in the third
quarter of 2011.
Adjusted operating expenses (non-GAAP) for the fourth quarter of
2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, impairment of goodwill,
and impairment of intangible assets, were US$10.7 million, representing a year-over-year
increase of 34.6% from US$7.9 million
and a quarter-over-quarter increase of 60.6% from US$6.7 million (1). Adjusted operating
expenses as a percentage of net revenues (non-GAAP) in the fourth
quarter of 2011 was 12.6%, compared to 11.6% in the same period one
year ago and 9.7% in the previous quarter.
(1) Please refer to "Adjustments to Unaudited Fourth Quarter
2010 Financial Results" below for a discussion of the adjustments
made to the Company's unaudited financial results for the fourth
quarter of 2011.
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 fourth quarter of 2011
were US$5.0 million, including
share-based compensation expenses of US$178,000. This represented a year-over-year
increase of 2.4% from US$4.9 million
and a quarter-over-quarter increase of 12.5% from US$4.4 million. The year-over-year and
quarter-over-quarter increases were primarily due to higher sales
commissions for the Company's direct sales force.
General and administrative expenses for the fourth quarter of
2011 were US$7.2 million, including
share-based compensation expenses of US$404,000. This represented a year-over-year
increase of 39.8% from US$5.2 million
and a quarter-over-quarter increase of 30.3% from US$5.6 million. The year-over-year and
quarter-over-quarter increases were primarily due to higher
bad-debt provisions.
Income/Loss from Operations
Income from operations for the fourth quarter of 2011 was
US$6.0 million, compared to income
from operations of US$3.3 million in
the same period one year ago and loss from operations of
US$3.0 million in the previous
quarter. Income from operations as a percentage of net revenues for
the fourth quarter of 2011 was 7.1%, compared to 4.8% in the same
period one year ago and negative 4.4% in the previous quarter.
Adjusted income from operations (non-GAAP) for the fourth
quarter of 2011, which excluded share-based compensation expenses,
amortization of acquired intangible assets, and impairment of
intangible assets, was US$8.5
million, compared to adjusted income from operations
(non-GAAP) of US$6.4 million in the
same period one year ago and adjusted income from operations
(non-GAAP) of US$333,000 in the
previous quarter. Adjusted operating margin (non-GAAP) for the
fourth quarter of 2011, which excluded the effect of share-based
compensation expenses, amortization of acquired intangible assets,
impairment of goodwill, and impairment of intangible assets, was
10.0%, compared to 9.3% in the same period one year ago and 0.5% in
the previous quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Loss from Operations to Non-GAAP Adjusted Loss from
Operations" for a reconciliation of loss from operations under U.S.
GAAP to adjusted loss from operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax expenses for the fourth quarter of 2011 were
US$2.4 million, compared to income
tax benefits of US$418,000 in the
same period one year ago and income tax benefits of US$205,000 in the previous quarter. The
year-over-year and quarter-over-quarter increases of tax expenses
were primarily due to higher valuation allowance.
Net Income/Loss Attributable
to AirMedia's Shareholders
Net income attributable to AirMedia's shareholders for the
fourth quarter of 2011 was US$4.6
million, compared to net income attributable to AirMedia's
shareholders of US$5.1 million in the
same period one year ago and net loss attributable to AirMedia's
shareholders of US$1.7 million in the
previous quarter. The basic net income attributable to AirMedia's
shareholders per ADS for the fourth quarter of 2011 was
US$0.07, compared to basic net income
attributable to AirMedia's shareholders per ADS of US$0.08 in the same period one year ago and basic
net loss attributable to AirMedia's shareholders per ADS of
US$0.03 in the previous quarter. The
diluted net income attributable to AirMedia's shareholders per ADS
for the fourth quarter of 2011 was US$0.07, compared to diluted net income
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$0.03 in the previous quarter.
Adjusted net income attributable to AirMedia's shareholders
(non-GAAP) for the fourth quarter of 2011, which is net income
attributable to AirMedia's shareholders excluding share-based
compensation expenses, amortization of acquired intangible assets,
impairment of goodwill, and impairment of intangible assets, was
US$7.2 million, compared to adjusted
net income attributable to AirMedia's shareholders (non-GAAP) of
US$8.2 million in the same period one
year ago and adjusted net income attributable to AirMedia's
shareholders (non-GAAP) of US$1.6
million in the previous quarter. Basic adjusted net income
attributable to AirMedia's shareholders per ADS (non-GAAP) for the
fourth quarter of 2011 was US$0.11,
compared to basic adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.12 in the same period one year ago and basic
adjusted net income attributable to AirMedia's shareholders per ADS
(non-GAAP) of US$0.03 in the previous
quarter. Diluted adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) for the fourth quarter of 2011 was
US$0.11, compared to diluted adjusted
net income attributable to AirMedia's shareholders per ADS
(non-GAAP) of US$0.12 in the same
period one year ago and diluted adjusted net income 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 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$6.4
million, cash totaled US$112.7
million as of December 31,
2011, compared to US$106.5
million as of December 31,
2010. The increase in cash from December 31, 2010 was primarily due to 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
ADSs within two years from March 21,
2011. As of March 4, 2012,
AirMedia had repurchased an aggregate of 3,397,915 ADSs on the open
market for a total consideration of US$11.1
million.
Fiscal Year 2011 Financial Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
|
|
Year
ended December 31,
2011
|
% of
Total Revenues
|
|
Year
ended December 31,
2010
|
% of
Total Revenues
|
|
Y/Y
Growth rate
|
Air
Travel Media Network
|
|
255,161
|
91.9%
|
|
222,146
|
94.0%
|
|
14.9%
|
Digital frames in airports
|
|
126,539
|
45.5%
|
|
113,196
|
47.9%
|
|
11.8%
|
Digital TV screens in airports
|
|
21,937
|
7.9%
|
|
28,905
|
12.2%
|
|
-24.1%
|
Digital TV screens on
airplanes
|
|
26,734
|
9.6%
|
|
27,564
|
11.7%
|
|
-3.0%
|
Traditional media in airports
|
|
73,535
|
26.5%
|
|
48,418
|
20.5%
|
|
51.9%
|
Other revenues in air travel
|
|
6,416
|
2.4%
|
|
4,063
|
1.7%
|
|
57.9%
|
Gas
Station Media Network
|
|
12,873
|
4.6%
|
|
3,664
|
1.5%
|
|
251.3%
|
Other
Media
|
|
9,787
|
3.5%
|
|
10,650
|
4.5%
|
|
-8.1%
|
Total
revenues
|
|
277,821
|
100.0%
|
|
236,460
|
100.0%
|
|
17.5%
|
Net
revenues
|
|
270,624
|
|
|
230,505
|
|
|
17.4%
|
Total revenues for the fiscal year 2011 were US$277.8 million, representing a year-over-year
increase of 17.5% from US$236.5
million in fiscal year 2010. The year-over-year increase was
primarily due to the increases in revenues from digital frames in
airports, traditional media in airports, and gas station media
network.
Revenues from digital frames in
airports
Revenues from digital frames in airports for fiscal year 2011
increased by 11.8% year-over-year to US$126.5 million due to an increase in the ASP of
digital frames in airports.
The number of time slots sold for fiscal year 2011 decreased
slightly by 1.0% year-over-year to 46,399 time slots. The number of
airports where AirMedia operates digital frames was 34 at the end
of 2011, unchanged from the end of 2010. The number of time slots
available for sale for fiscal year 2011 increased by 5.2%
year-over-year to 139,252 time slots. The utilization rate of
digital frames for fiscal year 2011 decreased by 2.1 percentage
points year-over-year to 33.3%, due to the increase in the number
of time slots available for sale and the decrease in the number of
time slots sold.
The ASP of digital frames in airports for fiscal year 2011
increased by 13.0% year-over-year to US$2,727 primarily due to an increase in the
listing prices of our digital frames in some airports in
January 2011 and lower discounts
offered in fiscal year 2011 than in fiscal year 2010.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for fiscal year
2011 decreased by 24.1% year-over-year to US$21.9 million 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 airports,
The number of time slots sold for fiscal year 2011 decreased by
44.9% year-over-year to 14,439 time slots, primarily due to a drop
in demand. The number of time slots available for sale for fiscal
year 2011 decreased by 21.3% year-over-year to 74,028 time slots in
2011, primarily due to the fact that after it became the operator
of CCTV's Air Channel, AirMedia shortened advertising time within
each one-hour program to 20 minutes from 25 minutes to better
attract air travelers' attention. Utilization rate of digital TV
screens in airports for fiscal year 2011 decreased by 8.4
percentage points year-over-year to 19.5% due to the decrease in
the number of time slots sold.
The ASP of digital TV screens in airports for fiscal year 2011
increased by 37.7% year-over-year to US$1,519, primarily due to lower discounts
offered in fiscal year 2011 than in fiscal year 2010, and a change
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 fiscal year 2011 than in fiscal year
2010.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for fiscal year
2011 decreased by 3.0% year-over-year to US$26.7 million, 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 on airplanes.
The number of time slots sold for fiscal year 2011 decreased by
25.5% year-over-year to 896 time slots due to a drop in demand and
an increase in the ASP of digital TV screens on airplanes in fiscal
year 2011 than in fiscal year 2010, which resulted in fewer time
slots sold. The number of time slots available for sale for fiscal
year 2011 was 1,656 time slots, relatively unchanged from fiscal
year 2010. Utilization rate for fiscal year 2011 decreased by 19.0
percentage points year-over-year to 54.1% primarily due to the
decrease in the number of time slots sold.
The ASP of digital TV screens on airplanes for fiscal year 2011
increased by 30.2% year-over-year to US$29,837, primarily due to an increase in the
listing prices of digital TV screens on the airplanes operated by
Air China and China Southern Airlines in January 2011 and lower discounts offered in
fiscal year 2011 than in fiscal year 2010.
Revenues from traditional media in
airports
Revenues from traditional media in airports for fiscal year 2011
increased by 51.9% year-over-year to US$73.5
million. The year-over-year increase was 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 fiscal year 2011 increased by
39.6% year-over-year to 2,559 locations. The number of locations
available for fiscal year 2011 increased by 25.4% year-over-year to
3,621 locations, primarily due to the newly signed contracts for
billboards and light boxes on the gate bridges at Terminal 3 of
Beijing Airport, in Wenzhou Yongqiang Airport, and in some other
airports. The utilization rate of traditional media for fiscal year
2011 increased by 7.2 percentage points year-over-year to 70.7% due
to the increase in the number of locations sold, which was
partially offset by the increase in the number of locations
available for sale.
The ASP of traditional media in airports for fiscal year 2011
increased by 8.8% year-over-year to US$28,736 due to lower discounts offered in
fiscal year 2011 than in fiscal year 2010 and more locations with
higher listing prices sold in fiscal year 2011 than in fiscal year
2010.
Revenues from the gas station media
network
Revenues from the gas station media network for fiscal year 2011
increased by 251.3% year-over-year to US$12.9 million due to continued sales efforts
and growing acceptance of AirMedia's 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 outdoor media across Beijing. Revenues from other media for fiscal
year 2011 decreased by 8.1% year-over-year to US$9.8 million, primarily due to the decrease in
revenues from real estate advertisers.
Business tax and other sales tax
Business tax and other sales tax for fiscal year 2011 was
US$7.2 million, representing a
year-over-year increase of 20.9% from US$6.0
million in fiscal year 2010 due to the increase in total
revenues.
Net revenues for fiscal year 2011 were US$270.6 million, representing a year-over-year
increase of 17.4% from US$230.5
million in fiscal year 2010.
Cost of Revenues
Cost of revenues for fiscal year 2011 was US$244.5 million, representing a year-over-year
increase of 23.5% from US$197.9
million in fiscal year 2010, primarily due to an increase in
concession fees, higher agency fees paid to third-party advertising
agencies and non-cash loss on the disposal of certain fixed assets.
Cost of revenues as a percentage of net revenues in fiscal year
2011 increased to 90.3% from 85.9% in fiscal year 2010.
Concession fees for fiscal year 2011 were US$160.2 million, representing a year-over-year
increase of 19.3% from US$134.3
million in fiscal year 2010, primarily due to additional new
concession contracts signed in 2011. Concession fees as a
percentage of net revenues in fiscal year 2011 increased to 59.2%
from 58.3% in fiscal year 2010 because concession fees were fixed
once concession rights contracts were entered into, while revenues
generated from newly signed concession rights contracts need time
to ramp up.
Gross Profit
Gross profit for fiscal year 2011 was US$26.2 million, representing a year-over-year
decrease of 19.8% from US$32.6
million in fiscal year 2010.
Gross profit as a percentage of net revenues for fiscal year
2011 was 9.7%, down from 14.1% in fiscal year 2010. The decrease in
gross profit as a percentage of net revenues was primarily due to
the fact that cost of revenues grew faster than net revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
|
Year
ended December 31,
2011
|
% of
Net Revenues
|
|
Year
ended December 31,
2010
|
% of
Net Revenues
|
|
Y/Y
Growth rate
|
Selling
and marketing expenses
|
18,238
|
6.7%
|
|
18,112
|
7.9%
|
|
0.7%
|
General
and administrative expenses
|
22,004
|
8.1%
|
|
24,646
|
10.7%
|
|
-10.7%
|
Impairment
of goodwill
|
1,003
|
0.4%
|
|
-
|
0.0%
|
|
N/A
|
Impairment
of intangible asset
|
656
|
0.2%
|
|
1,000
|
0.4%
|
|
-34.4%
|
Total
operating expenses
|
41,901
|
15.4%
|
|
43,758
|
19.0%
|
|
-4.2%
|
Adjusted
operating expenses (non-GAAP)
|
31,837
|
11.8%
|
|
31,038
|
13.5%
|
|
2.6%
|
Total operating expenses for fiscal year 2011 were US$41.9 million, representing a year-over-year
decrease of 4.2% from US$43.8 million
in fiscal year 2010.
Total operating expenses for fiscal year 2011 included
share-based compensation expenses of US$4.6
million, compared to US$8.0
million in fiscal year 2010. Adjusted operating expenses
(non-GAAP) for fiscal year 2011, which excluded share-based
compensation expenses, amortization of acquired intangible assets,
impairment of goodwill, and impairment of intangible assets, were
US$31.8 million, representing a
year-over-year increase of 2.6% from US$31.0
million in fiscal year 2010. Adjusted operating expenses as
a percentage of net revenues (non-GAAP) in fiscal year 2011
decreased to 11.8% from 13.5% in fiscal year 2010.
Selling and marketing expenses for fiscal year 2011 were
US$18.2 million, including
US$1.4 million of share-based
compensation expenses, relatively unchanged fiscal year 2010.
General and administrative expenses for fiscal year 2011 were
US$22.0 million, including
$3.2 million of share-based
compensation expenses. This represented a year-over-year decrease
of 10.7% from US$24.6 million in
fiscal year 2010 primarily due to lower professional fees, and
savings from many other areas in fiscal year 2011 than in fiscal
year 2010.
Income/Loss from Operations
Loss from operations for fiscal year 2011 was US$15.7 million, compared to loss from operations
of US$11.2 million in fiscal year
2010. Loss from operations as a percentage of net revenues for
fiscal year 2011 was negative 5.8%, compared to negative 4.8% in
fiscal year 2010.
Adjusted loss from operations (non-GAAP) for fiscal year 2011,
which excluded share-based compensation expenses, amortization of
acquired intangible assets, impairment of goodwill, and impairment
of intangible assets, was US$5.7
million, compared to adjusted income from operations
(non-GAAP) of US$1.6 million in
fiscal year 2010. Adjusted operating margin (non-GAAP) for fiscal
year 2011, which excluded the effect of share-based compensation
expenses, amortization of acquired intangible assets, impairment of
goodwill, and impairment of intangible assets, was negative 2.1%,
compared to 0.7% in fiscal year 2010.
Please refer to the attached table for a reconciliation of
income/loss from operations under U.S. GAAP to adjusted income/loss
from operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax expenses for fiscal year 2011 were US$266,000, compared to income tax benefits of
US$735,000 in fiscal year 2010.
Net Income/Loss Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for fiscal year
2011 was US$9.6 million, compared to
net loss attributable to AirMedia's shareholders of US$4.9 million in fiscal year 2011. Basic net
loss attributable to AirMedia's shareholders per ADS for fiscal
year 2011 was US$0.15, compared to
basic net loss attributable to AirMedia's shareholders per ADS of
US$0.07 in fiscal year 2010. Diluted
net loss attributable to AirMedia's shareholders per ADS for fiscal
year 2011 was US$0.15, compared to
diluted net loss attributable to AirMedia's shareholders per ADS of
US$0.07 in fiscal year 2010.
Adjusted net income attributable to AirMedia's shareholders
(non-GAAP) for fiscal year 2011, which is net income attributable
to AirMedia's shareholders excluding share-based compensation
expenses, amortization of acquired intangible assets, impairment of
goodwill, and impairment of intangible assets, was US$468,000, compared to adjusted net income
attributable to AirMedia's shareholders (non-GAAP) of US$7.8 million in fiscal year 2010. Basic and
diluted adjusted net income attributable to AirMedia's shareholders
per ADS (non-GAAP) for fiscal year 2011 were both US$0.01, compared to basic and diluted adjusted
net income attributable to AirMedia's shareholders per ADS
(non-GAAP) of US$0.12 in fiscal year
2010.
Please refer to the attached table for a reconciliation of (a)
net loss/income attributable to AirMedia's shareholders and basic
and diluted net loss/income attributable to AirMedia's shareholders
per ADS under U.S. GAAP to (b) adjusted net loss/income
attributable to AirMedia's shareholders and basic and diluted
adjusted net loss/income attributable to AirMedia's shareholders
per ADS (non-GAAP), respectively.
Other Recent Developments
In March 2012, AirMedia renewed
its concession rights contract with JCDecaux Momentum Shanghai
Airport Advertising Co., Ltd. to continue to exclusively operate
digital frames and digital TV screens in Shanghai Pudong
International Airport and Hongqiao International Airport until
February 2015.
In March 2012, AirMedia obtained
concession rights contract to operate three mega-size LEDs at the
security check areas and departure aisle of the newly built
Terminal 3 of Xi'an Xianyang International Airport for five years.
The new Terminal is expected to commence operations in the first
half of 2012.
In February 2012, AirMedia renewed
its concession rights contract with Beijing Capital International
Airport (Beijing Airport). Under this renewed contract, AirMedia
will continue to operate its current traditional media advertising
formats, such as billboards, light boxes and others, at all of
Beijing Airport's terminals, including Terminals 1, 2, and 3, from
April 1, 2012 to March 31, 2015. In a separate contract, AirMedia
also renewed its concession rights to operate digital frames at the
baggage claim areas in all three terminals of Beijing Airport for
three years.
In February 2012, AirMedia
obtained concession rights contract to operate 53 digital frames,
97 digital TV screens, and four mega-size LEDs at the newly built
Terminal 2 of Chengdu Shuangliu International Airport ("Chengdu
Airport") from April 1, 2012 to
March 31, 2017. AirMedia also
obtained concession rights to operate six light boxes at the
departure aisle and one other traditional advertising format at
Terminal 2 of Chengdu Airport from April 1,
2012 to March 31, 2015. The
new Terminal is expected to commence operations in the first half
of 2012. Chengdu Airport surpassed Shenzhen Bao'an International
Airport in 2011 in terms of air traveler volume to become the fifth
largest airport in mainland China.
In February, 2012, AirMedia renewed its concession rights
contract with Shenzhen Bao'an International Airport to continue to
operate its current traditional media advertising formats and
digital TV screens at Terminals A and B of the airport from
January 1, 2012 to December 31, 2012 when the terminals are
scheduled to retire.
On February 1, 2012, AirMedia
commenced operations of 24 sets of digital frames, each set
consisting of two screens, at the baggage claim areas of the
Terminal 2 of Changsha Huanghua International Airport in
Hunan province.
In January, 2012, AirMedia entered into a purchase and
cooperation frame contract with
Elec-Tech International Co., Ltd ("ETi") to purchase
LEDs of an aggregate value of RMB60
million (US$9.5 million)
before April 2012. ETi will put advertising orders of
RMB20 million (US$3.2 million) each year from 2012 to 2014 on
AirMedia's advertising platforms. The fulfillment and payment of
ETI's advertising orders will be the prerequisite of AirMedia's
fulfillment of its purchase of LEDs. In addition, AirMedia also
agreed to purchase additional LEDs of an aggregate value of
RMB150 million (US$23.8 million) by 2014 from ETi subject to
AirMedia's own business development and demand, which means no
binding legal power.
On January 10, 2012, AirMedia
commenced operations of 36 stand-alone digital frames in
Zhengzhou Xinzheng
International Airport in Henan province.
On January 4, 2012, AirMedia
commenced operations of 45 digital TV screens in Harbin Taiping
International Airport in Heilongjiang province.
In December 2011, AirMedia renewed
its concession rights contract with Air China to continue to
operate the digital TV screens on the airplanes operated by Air
China for one year until December 31,
2012.
On December 1, 2011, AirMedia and
Xunlei Limited entered into a strategic cooperation agreement to
jointly purchase copyrights in films and television programs.
Instead of paying cash, AirMedia will provide its unfilled
advertising time slot and space in this cooperation. AirMedia plans
to use the acquired copyrights primarily on its current digital
media network in the air sector. AirMedia will also explore
possible future use of the acquired copyright in other areas such
as video-on-demand system in hotels.
Business Outlook
AirMedia currently expects its total revenues for the first
quarter of 2012 to range from US$66.0
million to US$68.0 million, representing a year-over-year
increase of 7.6% to 10.8% from the same period in 2011.
AirMedia currently expects its concession fees to be
approximately US$43.0 million in the
first quarter of 2012. The quarter-over-quarter increase from the
fourth quarter of 2011 will be primarily due to the concession fee
commitments under concession rights contracts that were newly
signed or renewed or 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.
Adjustments to Unaudited Fourth Quarter 2010
Financial Results
To provide more 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,
AirMedia changed the definition of its non-GAAP
financial measures by adding (1) impairment of goodwill and (2)
impairment of intangible assets, which resulted in adjustments to
its Non-GAAP financial measures for the fourth quarter of 2010.
There is no adjustment to the GAAP results of the fourth quarter of
2010.
Summary of Selected Operating Data
|
Quarter
Ended December 31,2011
|
|
Quarter
Ended September 30,2011
|
|
Quarter
Ended December 31, 2010
|
|
Y/Y
Growth Rate
|
|
Q/Q
Growth Rate
|
|
Year
Ended December 31,2011
|
|
Year
Ended December 31, 2010
|
|
Y/Y
Growth Rate
|
Digital
frames in airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation
|
34
|
|
35
|
|
34
|
|
0.0%
|
|
-2.9%
|
|
34
|
|
34
|
|
0.0%
|
Number of time slots available for sale (2)
|
35,423
|
|
35,292
|
|
34,950
|
|
1.4%
|
|
0.4%
|
|
139,252
|
|
132,340
|
|
5.2%
|
Number of time slots sold (3)
|
14,189
|
|
11,461
|
|
13,534
|
|
4.8%
|
|
23.8%
|
|
46,399
|
|
46,887
|
|
-1.0%
|
Utilization rate (4)
|
40.1%
|
|
32.5%
|
|
38.7%
|
|
1.4%
|
|
7.6%
|
|
33.3%
|
|
35.4%
|
|
-2.1%
|
Average advertising revenue per time slot sold
(5)
|
US$2,698
|
|
US$2,678
|
|
US$2,413
|
|
11.8%
|
|
0.7%
|
|
US$2,727
|
|
US$2,414
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital
TV screens in airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation
|
36
|
|
37
|
|
38
|
|
-5.3%
|
|
-2.7%
|
|
36
|
|
38
|
|
-5.3%
|
Number of time slots available for sale (1)
|
18,138
|
|
18,664
|
|
23,986
|
|
-24.4%
|
|
-2.8%
|
|
74,028
|
|
94,050
|
|
-21.3%
|
Number of time slots sold (3)
|
6,133
|
|
2,313
|
|
7,103
|
|
-13.7%
|
|
165.2%
|
|
14,439
|
|
26,216
|
|
-44.9%
|
Utilization rate (4)
|
33.8%
|
|
12.4%
|
|
29.6%
|
|
4.2%
|
|
21.4%
|
|
19.5%
|
|
27.9%
|
|
-8.4%
|
Average advertising revenue per time slot sold(5)
|
US$1,528
|
|
US$1,490
|
|
US$1,209
|
|
26.4%
|
|
2.6%
|
|
US$1,519
|
|
US$1,103
|
|
37.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital
TV screens on airplanes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in operation
|
9
|
|
8
|
|
9
|
|
0.0%
|
|
12.5%
|
|
9
|
|
9
|
|
0.0%
|
Number of time slots available for sale (1)
|
414
|
|
414
|
|
426
|
|
-2.8%
|
|
0.0%
|
|
1,656
|
|
1,646
|
|
0.6%
|
Number of time slots sold (3)
|
218
|
|
254
|
|
402
|
|
-45.8%
|
|
-14.2%
|
|
896
|
|
1,203
|
|
-25.5%
|
Utilization rate (4)
|
52.7%
|
|
61.4%
|
|
94.4%
|
|
-41.7%
|
|
-8.7%
|
|
54.1%
|
|
73.1%
|
|
-19.0%
|
Average advertising revenue per time slot sold
(5)
|
US$34,555
|
|
US$26,748
|
|
US$23,872
|
|
44.8%
|
|
29.2%
|
|
US$29,837
|
|
US$22,913
|
|
30.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers of
locations available for sale (6)
|
950
|
|
904
|
|
752
|
|
26.3%
|
|
5.1%
|
|
3,621
|
|
2,887
|
|
25.4%
|
Numbers of
locations sold (7)
|
707
|
|
695
|
|
504
|
|
40.3%
|
|
1.7%
|
|
2,559
|
|
1,833
|
|
39.6%
|
Utilization rate (8)
|
74.4%
|
|
76.9%
|
|
67.0%
|
|
7.4%
|
|
-2.5%
|
|
70.7%
|
|
63.5%
|
|
7.2%
|
Average
advertising revenue per location sold (9)
|
US$31,448
|
|
US$30,711
|
|
US$28,192
|
|
11.5%
|
|
2.4%
|
|
US$28,736
|
|
US$26,415
|
|
8.8%
|
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 are calculated by dividing each of the Company's
revenues derived from digital TV screens in airports, digital TV
screens on airplanes and digital frames in airports 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 in such airport 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 in such airport 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 numbers in the relevant 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 fourth
quarter 2011 earnings at 7:00 AM U.S.
Eastern Time on March 12, 2012
(4:00 AM U.S. Pacific Time on
March 12, 2012; 7:00 PM Beijing/Hong
Kong time on March 12, 2012).
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
10:00 a.m. on March 12, 2012 and 11:59
p.m. on March 19, 2012, Eastern
Time.
Replay Dial-in Information
U.S.: +1 866 214 5335
International: +1 718 354 1232
Pass code: 55264680
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, (3)
impairment of goodwill, and (4) 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 34 major airports and digital
TV screens in 36 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)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
December 31,
2010
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
112,734
|
106,505
|
|
Restricted cash
|
|
6,363
|
6,798
|
|
Accounts receivable, net
|
|
92,823
|
62,455
|
|
Prepaid concession fees
|
|
22,909
|
31,787
|
|
Amount due from related party
|
|
148
|
306
|
|
Other current assets
|
|
6,627
|
2,713
|
|
Deferred tax assets - current
|
|
6,061
|
5,050
|
|
Total
current assets
|
|
247,665
|
215,614
|
|
Property and equipment, net
|
|
56,429
|
71,720
|
|
Long-term investments
|
|
2,047
|
1,714
|
|
Long-term deposits
|
|
15,042
|
13,874
|
|
Deferred tax assets - non-current
|
|
5,763
|
6,032
|
|
Acquired intangible assets, net
|
|
13,788
|
17,496
|
|
Goodwill
|
|
20,734
|
20,736
|
|
Total
assets
|
|
361,468
|
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 $61,697 as of
December 31,
|
|
|
|
|
2010 and December 31, 2011,
respectively)
|
|
63,577
|
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 $9,585 as of
December 31,
|
|
|
|
|
2010 and December 31, 2011,
respectively)
|
|
11,276
|
12,253
|
|
Deferred revenue (including deferred revenue of
the
|
|
|
|
|
consolidated variable interest entities
without recourse to
|
|
|
|
|
AirMedia Group Inc. $12,751 and $11,516 as of
December 31
|
|
|
|
|
2010 and December 31, 2011,
respectively)
|
|
11,522
|
12,751
|
|
Income tax payable (including income tax payable of
the
|
|
|
|
|
consolidated variable interest entities
without recourse to
|
|
|
|
|
AirMedia Group Inc. $911 and $332 as of
December 31,
|
|
|
|
|
2010 and December 31, 2011,
respectively)
|
|
792
|
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 $443 as
|
|
|
|
|
of December 31, 2010 and December 31, 2011,
respectively)
|
|
443
|
422
|
|
Total
current liabilities
|
|
87,610
|
65,709
|
|
Deferred tax liability - non-current
|
|
3,800
|
4,761
|
|
Total
liabilities
|
|
91,410
|
70,470
|
|
Equity
|
|
|
|
|
Ordinary shares
|
|
128
|
132
|
|
Additional paid-in capital
|
|
275,150
|
277,676
|
|
Treasury stock
|
|
(3,775)
|
-
|
|
Statutory reserves
|
|
8,049
|
7,671
|
|
Accumulated deficits
|
|
(38,138)
|
(28,164)
|
|
Accumulated other comprehensive income
|
|
30,734
|
18,353
|
|
Total
AirMedia Group Inc.'s shareholders' equity
|
|
272,148
|
275,668
|
|
Noncontrolling interests
|
|
(2,090)
|
1,048
|
|
Total
equity
|
|
270,058
|
276,716
|
|
Total
liabilities and equity
|
|
361,468
|
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
|
|
Year
Ended
|
|
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|
December 31,
2011
|
December 31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
87,830
|
70,108
|
70,762
|
|
277,821
|
236,460
|
Business
tax and other sales tax
|
|
(2,836)
|
(1,393)
|
(2,075)
|
|
(7,197)
|
(5,955)
|
Net
revenues
|
|
84,994
|
68,715
|
68,687
|
|
270,624
|
230,505
|
Cost of
revenues
|
|
65,764
|
61,723
|
54,343
|
|
244,470
|
197,908
|
Gross
profit
|
|
19,230
|
6,992
|
14,344
|
|
26,154
|
32,597
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and marketing *
|
|
4,984
|
4,429
|
4,866
|
|
18,238
|
18,112
|
General and administrative *
|
|
7,245
|
5,562
|
5,182
|
|
22,004
|
24,646
|
Impairment of goodwill
|
|
1,003
|
-
|
-
|
|
1,003
|
-
|
Impairment of intangible assets
|
|
-
|
-
|
1,000
|
|
656
|
1,000
|
Total
operating expenses
|
|
13,232
|
9,991
|
11,048
|
|
41,901
|
43,758
|
Income
(loss) from operations
|
|
5,998
|
(2,999)
|
3,296
|
|
(15,747)
|
(11,161)
|
Interest
income
|
|
247
|
254
|
188
|
|
1,242
|
694
|
Gain on
remeasurement of cost and equity method investments
(net)
|
|
-
|
-
|
-
|
|
-
|
919
|
Other
income, net
|
|
716
|
401
|
328
|
|
1,848
|
940
|
Income
(loss) before income taxes
|
|
6,961
|
(2,344)
|
3,812
|
|
(12,657)
|
(8,608)
|
Income tax
benefits (expenses)
|
|
(2,446)
|
205
|
418
|
|
(266)
|
735
|
Net income
(loss) before net income of equity method investments
|
|
4,515
|
(2,139)
|
4,230
|
|
(12,923)
|
(7,873)
|
Net income
of equity method investments
|
|
70
|
75
|
31
|
|
243
|
290
|
Net
income (loss)
|
|
4,585
|
(2,064)
|
4,261
|
|
(12,680)
|
(7,583)
|
Less: Net
loss attributable to noncontrolling interests
|
|
(44)
|
(381)
|
(849)
|
|
(3,084)
|
(2,666)
|
Net income (loss) attributable to AirMedia
Group Inc.'s shareholders
|
|
4,629
|
(1,683)
|
5,110
|
|
(9,596)
|
(4,917)
|
Net income
(loss) attributable to AirMedia Group Inc.'s shareholders per
ordinary share
|
|
|
|
|
|
|
|
Basic
|
|
0.04
|
(0.01)
|
0.04
|
|
(0.07)
|
(0.04)
|
Diluted
|
|
0.04
|
(0.01)
|
0.04
|
|
(0.07)
|
(0.04)
|
Net income
(loss) attributable to AirMedia Group Inc.'s shareholders per
ADS
|
|
|
|
|
|
|
|
Basic
|
|
0.07
|
(0.03)
|
0.08
|
|
(0.15)
|
(0.07)
|
Diluted
|
|
0.07
|
(0.03)
|
0.07
|
|
(0.15)
|
(0.07)
|
Weighted
average ordinary shares outstanding used in computing net
income (loss) per ordinary share - basic
|
|
126,546,835
|
128,978,404
|
131,502,583
|
|
129,537,955
|
131,252,115
|
Weighted
average ordinary shares outstanding used in computing net
income (loss) per ordinary share - diluted
|
|
127,711,965
|
128,978,404
|
137,419,791
|
|
129,537,955
|
131,252,115
|
*
Share-based compensation charges included are as follow:
|
|
|
|
|
|
|
|
Selling and marketing
|
|
178
|
679
|
370
|
|
1,422
|
2,424
|
General and administrative
|
|
404
|
1,706
|
776
|
|
3,192
|
5,547
|
AirMedia Group Inc.
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) AND EPS
TO NON-GAAP ADJUSTED NET INCOME AND EPS
|
|
|
|
|
(In
U.S. dollars in thousands, except share and ADS related
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|
December 31,
2011
|
December 31,
2010
|
|
|
|
|
(Adjusted)
|
|
|
(Adjusted)
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to AirMedia Group Inc.'s shareholders
(GAAP)
|
|
4,629
|
(1,683)
|
5,110
|
|
(9,596)
|
(4,917)
|
Amortization of acquired intangible assets
|
|
952
|
947
|
958
|
|
3,791
|
3,749
|
Share-based compensation
|
|
582
|
2,385
|
1,146
|
|
4,614
|
7,971
|
Impairment
of goodwill
|
|
1,003
|
-
|
-
|
|
1,003
|
-
|
Impairment
of intangible assets
|
|
-
|
-
|
1,000
|
|
656
|
1000
|
Adjusted net income attributable to AirMedia Group
Inc.'s shareholders (non-GAAP)
|
|
7,166
|
1,649
|
8,214
|
|
468
|
7,803
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to AirMedia Group
Inc.'s shareholders per share (non-GAAP)
|
|
|
|
|
|
|
|
Basic
|
|
0.06
|
0.01
|
0.06
|
|
0.00
|
0.06
|
Diluted
|
|
0.06
|
0.01
|
0.06
|
|
0.00
|
0.06
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to AirMedia Group
Inc.'s shareholders per ADS (non-GAAP)
|
|
|
|
|
|
|
|
Basic
|
|
0.11
|
0.03
|
0.12
|
|
0.01
|
0.12
|
Diluted
|
|
0.11
|
0.03
|
0.12
|
|
0.01
|
0.12
|
|
|
|
|
|
|
|
|
Shares
used in computing adjusted basic net income attributable to
AirMedia Group Inc.'s shareholders per share (non-GAAP)
|
|
126,546,835
|
128,978,404
|
131,502,583
|
|
129,537,955
|
131,252,115
|
Shares
used in computing adjusted diluted net income attributable to
AirMedia Group Inc.'s shareholders per share (non-GAAP)
|
|
127,711,965
|
128,978,404
|
137,419,791
|
|
129,829,237
|
132,963,246
|
Note: 1)
The Non-GAAP adjusted net income per share and per ADS are computed
using Non-GAAP net adjusted income and number of shares and ADSs
used in GAAP basic and diluted EPS calculation, where the number of
shares and ADSs is adjusted for dilution due to the share-based
compensation plan.
2) To provide more 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, AirMedia
changed the definition of its non-GAAP financial measures by adding
(1) impairment of goodwill and (2) impairment of intangible assets,
which resulted in adjustments to its Non-GAAP financial measures in
the fourth quarter of 2010. There is no adjustment to the GAAP
results of the fourth quarter of 2010.
|
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
|
|
Year
Ended
|
|
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|
December 31,
2011
|
December 31,
2010
|
|
|
|
|
(Adjusted)
|
|
|
(Adjusted)
|
|
|
|
|
|
|
|
|
Operating expenses (GAAP)
|
|
13,232
|
9,991
|
11,048
|
|
41,901
|
43,758
|
Amortization of acquired intangible assets
|
|
952
|
947
|
958
|
|
3,791
|
3,749
|
Share-based compensation
|
|
582
|
2,385
|
1,146
|
|
4,614
|
7,971
|
Impairment
of goodwill
|
|
1,003
|
-
|
-
|
|
1,003
|
-
|
Impairment
of intangible assets
|
|
-
|
-
|
1,000
|
|
656
|
1,000
|
|
|
|
|
|
|
|
|
Adjusted operating expenses
(non-GAAP)
|
|
10,695
|
6,659
|
7,944
|
|
31,837
|
31,038
|
|
|
|
|
|
|
|
|
Adjusted operating expenses as a percentage of net
revenues (non-GAAP)
|
|
12.6%
|
9.7%
|
11.6%
|
|
11.8%
|
13.5%
|
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
|
|
Year
Ended
|
|
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|
December 31,
2011
|
December 31,
2010
|
|
|
|
|
(Adjusted)
|
|
|
(Adjusted)
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
|
5,998
|
(2,999)
|
3,296
|
|
(15,747)
|
(11,161)
|
Amortization of acquired intangible assets
|
|
952
|
947
|
958
|
|
3,791
|
3,749
|
Share-based compensation
|
|
582
|
2,385
|
1,146
|
|
4,614
|
7,971
|
Impairment
of goodwill
|
|
1,003
|
-
|
-
|
|
1,003
|
-
|
Impairment
of intangible assets
|
|
-
|
-
|
1,000
|
|
656
|
1,000
|
|
|
|
|
|
|
|
|
Adjusted income (loss) from operations
(non-GAAP)
|
|
8,535
|
333
|
6,400
|
|
(5,683)
|
1,559
|
|
|
|
|
|
|
|
|
Adjusted operating margin
(non-GAAP)
|
|
10.0%
|
0.5%
|
9.3%
|
|
-2.1%
|
0.7%
|
SOURCE AirMedia Group Inc.