BEIJING, Sept. 26, 2012 /PRNewswire/ -- 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 that its board of directors has approved to
increase the size of its previously announced share repurchase
program to US$40 million from
US$20 million and to extend the
termination date of the share repurchase program to March 20, 2014 from March
20, 2013. The other terms of the share repurchase program
will remain unchanged.
Under the expanded share repurchase program, AirMedia has been
authorized, but not obligated, by its board of directors to
repurchase a total of up to US$40
million worth of its own outstanding American Depositary
Shares ("ADSs") until March 20, 2014.
As of September 23, 2012, AirMedia
had repurchased an aggregate of 4,347,601 ADSs on the open
market for a total consideration of US$13.1 million, and is now authorized to
purchase up to US$26.9 million worth
of additional ADSs under the expanded share repurchase program.
The expanded share repurchase program will allow the Company to
make more sizable repurchases. The repurchases will be made on the
open market at prevailing market prices pursuant to Rule 10b5-1, in
negotiated transactions off the market, in block trades or
otherwise from time to time. The timing and extent of any purchases
will depend upon market conditions, the trading price of ADSs and
other factors, and be subject to the restrictions relating to
volume, price and timing in accordance with applicable law.
AirMedia expects to implement this share repurchase program in a
manner consistent with market conditions and the interests of its
shareholders. AirMedia's board of directors will review the share
repurchase program periodically, and may authorize adjustment of
its terms and size accordingly. AirMedia plans to fund repurchases
made under this program from its available cash balance.
"Our cash balance has been increasing since the year end of
fiscal year 2010. Our decision to increase the size of our share
repurchase program reflects our confidence in the business
fundamentals and the long-term prospects of our company. The
expanded share repurchase program also reiterates our commitment to
maximizing shareholder value," commented Herman Guo, chairman and chief executive officer
of AirMedia.
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 33 major airports and digital
TV screens in 35 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 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 quotations from management in this announcement
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, our air
travel advertising network, we may be unable to generate sufficient
cash flow from our operating activities and our prospects and
results of operations could be negatively affected; we derive most
of our 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 our revenues and results of operations; our
strategy of expanding our advertising network by building new air
travel media platforms and expanding into traditional media in
airports may not succeed, and our failure to do so could materially
reduce the attractiveness of our network and harm our business,
reputation and results of operations; if we do not succeed in our
expansion into gas station and other outdoor media advertising, our
future results of operations and growth prospects may be materially
and adversely affected; if our customers reduce their advertising
spending or are unable to pay us 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, our revenues and results of operations may be materially
and adversely affected; we face risks related to health epidemics,
which could materially and adversely affect air travel and result
in reduced demand for our advertising services or disrupt our
operations; if we are unable to retain existing concession rights
contracts or obtain new concession rights contracts on commercially
advantageous terms that allow us to operate our advertising
platforms, we may be unable to maintain or expand our network
coverage and our business and prospects may be harmed; a
significant portion of our revenues has been derived from the five
largest airports and three largest airlines in China, and if any of these airports or
airlines experiences a material business disruption, our ability to
generate revenues and our results of operations would be materially
and adversely affected; our limited operating history makes it
difficult to evaluate our future prospects and results of
operations; and other risks outlined in AirMedia's filings with the
U.S. Securities and Exchange Commission. AirMedia does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
SOURCE AirMedia Group Inc.