Beijing, Nov. 19, 2013 /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 its unaudited financial results for the third
quarter ended September 30, 2013.
Third Quarter 2013 Financial and Business
Highlights
- Total revenues decreased by 5.6% year-over-year and increased
by 7.3% quarter-over-quarter to US$69.0
million. The year-over-year decrease was partially due to
AirMedia's termination of operations of certain unprofitable or
low-margin contracts and China's
replacement of regular business tax with Value Added Tax ("VAT") in
Beijing, one of AirMedia's key
regions of operations.
- Net revenues decreased by 4.6% year-over-year and increased by
7.4% quarter-over-quarter to US$68.1
million.
- Concession fees for the third quarter of 2013 decreased by 3.9%
year-over-year and by 7.8% quarter-over-quarter to US$42.8 million.
- Net loss attributable to AirMedia's shareholders decreased to
US$3.5 million, compared to net loss
attributable to AirMedia's shareholders of US$27.3 million in the same period one year ago
and net loss attributable to AirMedia's shareholders of
US$4.9 million in the previous
quarter. Basic and diluted net loss attributable to AirMedia's
shareholders per American Depositary Share ("ADS") were both
US$0.06.
- Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP), which is net loss attributable to AirMedia's
shareholders excluding share-based compensation expenses,
amortization of acquired and other intangible assets, impairment of
goodwill and impairment of intangible assets, was US$3.1 million. Adjusted basic net loss
attributable to AirMedia's shareholders per ADS (non-GAAP), which
is adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) divided by the number of ADSs outstanding, was
US$0.05. Adjusted diluted net loss
attributable to AirMedia's shareholders per ADS (non-GAAP), which
is adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) divided by the number of ADSs outstanding as adjusted
for dilution after taking into account option grants under the
Company's current Share Incentive Plan, was US$0.05.
"The robust growth of our mega-size LED screens network, our
cost control strategy, and our efforts to turn around our
unprofitable product lines are helping the Company to get on the
right track back to profitability," commented Mr. Herman Guo, chairman and chief executive officer
of AirMedia. "Our partnership with HNA group to provide in-flight
internet connectivity service and in-air multimedia platform is a
significant step for us, and we expect it to become a future growth
driver for the Company. We believe that in-flight internet stands
for the trend of the future of in-air entertainment, and that the
in-flight internet business is an excellent opportunity for our
Company. We expect this strategic development to enable us to
operate in a much broader territory and expand our revenue
sources. We are in the process of establishing an industry
development fund of in-flight internet, raising funds for such
fund, and prudently selecting technical partners."
"We are excited to see that our efforts in turning around the
Company are starting to pay off. With our termination of the
operations of certain unprofitable or low-margin contracts and the
rapid growth of our nationwide network of mega-size LED screens,
our net revenues increased by 7.4% quarter-over-quarter to
US$68.1 million, while our concession
fee cost decreased by 7.8% quarter-over-quarter to US$42.8 million," commented Mr. Henry Ho, chief financial officer of
AirMedia.
Third Quarter 2013 Financial Results
Revenues
Total revenues by product line (numbers in US$ 000's except for
percentages):
|
|
Quarter
Ended
September
30, 2013
|
% of Total
Revenues
|
|
Quarter
Ended
June
30, 2013
|
% of Total
Revenues
|
|
Quarter
Ended
September
30, 2012
|
% of Total
Revenues
|
|
Y/Y
Growth
rate
|
|
Q/Q
Growth
rate
|
Air Travel Media
Network
|
|
63,315
|
91.7%
|
|
60,712
|
94.3%
|
|
66,233
|
90.6%
|
|
-4.4%
|
|
4.3%
|
Digital frames
in airports
|
|
39,308
|
56.9%
|
|
34,078
|
53.0%
|
|
34,993
|
47.9%
|
|
12.3%
|
|
15.3%
|
Digital TV
screens in airports
|
|
3,604
|
5.2%
|
|
2,651
|
4.1%
|
|
2,740
|
3.7%
|
|
31.5%
|
|
35.9%
|
Digital TV
screens on airplanes
|
|
4,436
|
6.4%
|
|
3,325
|
5.2%
|
|
6,578
|
9.0%
|
|
-32.6%
|
|
33.4%
|
Traditional
media in airports
|
|
13,257
|
19.2%
|
|
18,459
|
28.7%
|
|
20,113
|
27.5%
|
|
-34.1%
|
|
-28.2%
|
Other revenues
in air travel
|
|
2,710
|
4.0%
|
|
2,199
|
3.3%
|
|
1,809
|
2.5%
|
|
49.8%
|
|
23.2%
|
Gas Station Media
Network
|
|
3,281
|
4.8%
|
|
2,236
|
3.5%
|
|
3,889
|
5.3%
|
|
-15.6%
|
|
46.7%
|
Other
Media
|
|
2,447
|
3.5%
|
|
1,397
|
2.2%
|
|
2,984
|
4.1%
|
|
-18.0%
|
|
75.2%
|
Total
revenues
|
|
69,043
|
100.0%
|
|
64,345
|
100.0%
|
|
73,106
|
100.0%
|
|
-5.6%
|
|
7.3%
|
Net
revenues
|
|
68,067
|
|
|
63,373
|
|
|
71,368
|
|
|
-4.6%
|
|
7.4%
|
Total revenues for the third quarter of 2013 reached
US$69.0 million, representing a
year-over-year decrease of 5.6% from US$73.1
million in the same period one year ago and a
quarter-over-quarter increase of 7.3% from US$64.3 million in the previous quarter. The
year-over-year decrease was primarily due to decreases in revenues
from digital TV screens on airplanes and traditional media in
airports, which were primarily caused by AirMedia's termination of
the operations of certain unprofitable or low-margin contracts as
well as China's replacement of
regular business tax with VAT in Beijing, one of AirMedia's key regions of
operations. The quarter-over-quarter increase was primarily due to
increases in revenues from most product lines other than
traditional media in airports, which decreased quarter-over-quarter
primarily due to AirMedia's termination of the operations of
certain unprofitable or low-margin contracts.
Revenues from digital frames in airports
Revenues from digital frames in airports for the third quarter
of 2013 increased by 12.3% year-over-year and by 15.3%
quarter-over-quarter to US$39.3
million. The year-over-year and quarter-over-quarter
increases were primarily due to additional revenues from the
rapidly growing product line of mega-size LED screens, which added
operations in additional airports.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the third
quarter of 2013 increased by 31.5% year-over-year and by 35.9%
quarter-over-quarter to US$3.6
million. The year-over-year and quarter-over-quarter
increases were primarily due to the fact that several large clients
allocated additional budgets to placing digital TV screen
advertisements with AirMedia and increased numbers of customers in
the third quarter of 2013.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the third
quarter of 2013 decreased by 32.6% year-over-year and increased by
33.4% quarter-over-quarter to US$4.4
million. AirMedia did not renew its concession rights
contract with Air China, which originally expired on December 31, 2012, until AirMedia re-obtained
some advertising time on Air China's airplanes on August 1, 2013.The year-over-year decrease of
revenues from digital TV screens on airplanes was primarily due to
the decrease in revenues of digital TV screens on Air China's
airplanes, which didn't have operations for the full third quarter
of 2013. The quarter-over-quarter increase of revenues from digital
TV screens on airplanes was primarily due to the fact that AirMedia
re-obtained some advertising time on Air China's airplanes starting
from August 1, 2013.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the third
quarter of 2013 decreased by 34.1% year-over-year and by 28.2%
quarter-over-quarter to US$13.3
million. The year-over-year decrease was primarily due to
AirMedia's termination of certain unprofitable or low-margin
contracts. AirMedia chose not to renew the concession rights
contracts of most of AirMedia's traditional media in Shenzhen Baoan
International Airport at the end of 2012, the billboards and
painted advertisements on the interior of the gate bridges of
Terminal 3 in Beijing Capital International Airport ("Beijing
Airport") in the middle of May 2013
after the expiration of the relevant contracts and the billboards
and painted advertisements on the exterior of the gate bridges of
Terminal 3 of Beijing Airport in July
2013 after the expiration of the relevant contracts. The
quarter-over-quarter decrease was primarily due to the expiration
of the concession rights contract for the billboards and painted
advertisements on the exterior of the gate bridges of Terminal 3 of
Beijing Airport in July 2013.
Revenues from the gas station media
network
Revenues from the gas station media network for the third
quarter of 2013 decreased by 15.6% year-over-year and increased by
46.7% quarter-over-quarter to US$3.3
million. The year-over-year decrease was primarily due to
the fact that some advertisers expressed interest in reserving
their budgets for the LED screens that AirMedia plans to install in
its gas stations, as well as China's replacement of regular business tax
with VAT in Beijing. The
quarter-over-quarter increase was primarily due to additional
advertising from a large client that decided to use up the
remaining amount of gas station media advertising in its framework
contract with AirMedia before the year end.
Revenues from other media
Revenues from other media were primarily revenues from unipole
signs and other outdoors media. Revenues from other media for the
third quarter of 2013 decreased by 18.0% year-over-year and
increased by 75.2% quarter-over-quarter to US$2.4 million. The year-over-year decrease was
primarily due to expiration of the contracts for some locations in
November and December 2012. The
quarter-over-quarter increase was due to the fact that AirMedia
continued to ramp up the utilization rates of some newly signed or
renewed media resources.
Business tax and other sales tax
Business tax and other sales tax for the third quarter of 2013
were US$976,000, compared to
US$1.7 million in the same period one
year ago and US$972,000 in the
previous quarter. The year-over-year decrease was due to
China's replacement of regular
business tax with the VAT in Beijing, one of AirMedia's key regions of
operations. Prior to September 1,
2012, revenues were recorded gross of business tax and
subsequent to the change, revenues are recorded net of VAT
thereafter. Revenues from most of the Company's product lines
booked in total revenues were already net revenues after deducting
VAT in the third quarter of 2013. The majority of the Company's
business tax and other sales tax, amounting to US$976,000 in the third quarter of 2013, were
other sales tax.
Net revenues
Net revenues for the third quarter of 2013 reached US$68.1 million, representing a year-over-year
decrease of 4.6% from US$71.4 million
in the same period one year ago and a quarter-over-quarter increase
of 7.4% from US$63.4 million in the
previous quarter.
Cost of Revenues
Cost of revenues for the third quarter of 2013 was US$59.5 million, representing a year-over-year
decrease of 4.8% from 62.6 million in the same period one year ago
and a quarter-over-quarter decrease of 0.9% from US$60.1 million in the previous quarter. The
year-over-year decrease was primarily due to lower concession fees
and lower agency fees for third-party advertising agencies. The
quarter-over-quarter decrease was primarily due to lower concession
fees, which was partially offset by higher agency fees for
third-party advertising agencies in the third quarter of 2013.
There was a partial reversal of certain previously accrued agency
fees of US$0.8 million in the third
quarter of 2013 that were waived by the related agents, compared to
a partial reversal of certain previously accrued agency fees of
US$1.5 million in the second quarter
of 2013 that were waived by the related agents. Cost of revenues as
a percentage of net revenues in the third quarter of 2013 was
87.4%, up from 87.7% in the same period one year ago and up from
94.8% 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 third quarter of 2013 decreased by 3.9%
year-over-year and by 7.8% quarter-over-quarter to US$42.8 million. The year-over-year and
quarter-over-quarter decreases were primarily due to AirMedia's
termination of operations of certain unprofitable or low-margin
contracts. Concession fees as a percentage of net revenues in the
third quarter of 2013 was 62.8%, remaining relatively unchanged
from the same period one year ago and decreasing from 73.2% in the
previous quarter. The quarter-over-quarter decrease of concession
fees as a percentage of net revenues was primarily due to the fact
that concession fees decreased and net revenues increased as well
in the third quarter of 2013.
Gross Profit
Gross profit for the third quarter of 2013 decreased by 3.1%
year-over-year and increased by 159.1% quarter-over-quarter to
US$8.5 million.
Gross profit as a percentage of net revenues for the third
quarter of 2013 was 12.6%, compared to 12.3% in the same period one
year ago and 5.2% in the previous quarter. The year-over-year
increase in gross profit as a percentage of net revenues was
primarily due to the decrease in concession fees. The
quarter-over-quarter increase in gross profit as a percentage of
net revenues was primarily due to the increase in net revenues and
the decrease in concession fees.
Operating Expenses
Operating expenses (numbers in US$ 000's except for
percentages):
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
September
30, 2013
|
% of Net
Revenues
|
|
Quarter
Ended
June
30, 2013
|
% of Net
Revenues
|
|
Quarter
Ended
September
30, 2012
|
% of Net
Revenues
|
|
Y/Y
Growth
rate
|
Q/Q
Growth
rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
5,600
|
8.2%
|
|
4,782
|
7.5%
|
|
4,461
|
6.3%
|
|
25.5%
|
17.1%
|
General and
administrative expenses
|
6,565
|
9.6%
|
|
5,468
|
8.6%
|
|
5,228
|
7.3%
|
|
25.6%
|
20.1%
|
Impairment of
goodwill
|
-
|
-
|
|
-
|
-
|
|
20,611
|
28.9%
|
|
N/A
|
N/A
|
Impairment of
intangible assets
|
-
|
-
|
|
-
|
-
|
|
9,583
|
13.4%
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
12,165
|
17.8%
|
|
10,250
|
16.1%
|
|
39,883
|
55.9%
|
|
-69.5%
|
18.7%
|
Adjusted operating
expenses
(non-GAAP)
|
11,686
|
17.2%
|
|
9,776
|
15.4%
|
|
8,256
|
11.6%
|
|
41.5%
|
19.5%
|
Total operating expenses for the third quarter of 2013 were
US$12.2 million, representing a
year-over-year decrease of 69.5% from US$39.9 million in the same period one year ago
and a quarter-over-quarter increase of 18.7% from US$10.3 million in the previous quarter.
Share-based compensation expenses included in the total
operating expenses for the third quarter of 2013 were US$269,000, compared to share-based compensation
expenses of US$713,000 in the same
period one year ago and share-based compensation expenses of
US$277,000 in the previous quarter.
The year-over-year decrease in share-based compensation expenses
was primarily due to the ending of the vesting period of stock
options granted on July 10, 2009.
Adjusted operating expenses (non-GAAP), which excluded
share-based compensation expenses, amortization of acquired and
other intangible assets, impairment of goodwill, and impairment of
intangible assets, were US$11.7
million for the third quarter of 2013, representing a
year-over-year increase of 41.5% from US$8.3
million in the same period one year ago and a
quarter-over-quarter increase of 19.5% from US$9.8 million in the previous quarter. Adjusted
operating expenses as a percentage of net revenues (non-GAAP),
which is calculated by dividing adjusted operating expenses
(non-GAAP) by net revenues, was 17.2% in the third quarter of 2013,
compared to 11.6% in the same period one year ago and 15.4% 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 2013
were US$5.6 million. This represented
a year-over-year increase of 25.5% from US$4.5 million and a quarter-over-quarter
increase of 17.1% from US$4.8
million. The year-over-year and quarter-over-quarter
increases were primarily due to higher expenses related to the
Company's direct sales force, higher marketing expenses and higher
travel expenses.
General and administrative expenses for the third quarter of
2013 were US$6.6 million, including
share-based compensation expenses of US$269,000. This represented a year-over-year
increase of 25.6% from US$5.2 million
in the same period one year ago and a quarter-over-quarter increase
of 20.1% from US$5.5 million in the
previous quarter. The year-over-year increase was primarily due to
higher salary expenses, higher bad-debt provisions and higher
professional fees. The quarter-over-quarter increase was primarily
due to higher bad-debt provisions, higher professional fees and
higher salary expenses.
Loss/Income from Operations
Loss from operations for the third quarter of 2013 was
US$3.6 million, compared to loss from
operations of US$31.1 million in the
same period one year ago and loss from operations of US$7.0 million in the previous quarter. Loss from
operations as a percentage of net revenues for the third quarter of
2013 was negative 5.3%, compared to negative 43.5% in the same
period one year ago and negative 11.0% in the previous quarter.
Adjusted loss from operations (non-GAAP), which excluded
share-based compensation expenses, amortization of acquired and
other intangible assets, impairment of goodwill and impairment of
intangible assets, was US$3.1 million
for the third quarter of 2013, compared to adjusted income from
operations (non-GAAP) of US$557,000
in the same period one year ago and adjusted loss from operations
(non-GAAP) of US$6.5 million in the
previous quarter. Adjusted operating margin (non-GAAP), which
excluded the effect of share-based compensation expenses,
amortization of acquired and other intangible assets, impairment of
goodwill, and impairment of intangible assets, was negative 4.6%
for the third quarter of 2013, compared to 0.8% in the same period
one year ago and negative 10.2% in the previous quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Loss from Operations to Non-GAAP Adjusted (Loss) Income from
Operations" for a reconciliation of loss from operations under U.S.
GAAP to adjusted (loss) income from operations (non-GAAP).
Income Tax Expenses/Benefits
Income tax expenses for the third quarter of 2013 were
US$2.2 million, compared to income
tax benefits of US$3.0 million in the
same period one year ago and income tax benefits of US$1.0 million in the previous quarter.
Net Loss/Income Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for the third
quarter of 2013 was US$3.5 million,
compared to net loss attributable to AirMedia's shareholders of
US$27.3 million in the same period
one year ago and net loss attributable to AirMedia's shareholders
of US$4.9 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders
per ADS for the third quarter of 2013 was US$0.06, compared to basic net loss attributable
to AirMedia's shareholders per ADS of US$0.44 in the same period one year ago and basic
net loss attributable to AirMedia's shareholders per ADS of
US$0.08 in the previous quarter. The
diluted net loss attributable to AirMedia's shareholders per ADS
for the third quarter of 2013 was US$0.06, compared to diluted net loss
attributable to AirMedia's shareholders per ADS of US$0.44 in the same period one year ago and
diluted net loss attributable to AirMedia's shareholders per ADS of
US$0.08 in the previous quarter.
Adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) was US$3.1 million for the
third quarter of 2013, compared to adjusted net income attributable
to AirMedia's shareholders (non-GAAP) of US$4.3 million the same period one year ago and
adjusted net loss attributable to AirMedia's shareholders
(non-GAAP) of US$4.5 million in the
previous quarter. Adjusted basic net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) was US$0.05 for the third quarter of 2013, compared
to adjusted basic net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.07 in the same period one year ago and
adjusted basic net loss attributable to AirMedia's shareholders per
ADS (non-GAAP) of US$0.07 in the
previous quarter. Adjusted diluted net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) was US$0.05 for the third quarter of 2013, compared
to adjusted diluted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.07 in the same period one year ago and
adjusted diluted net loss attributable to AirMedia's shareholders
per ADS (non-GAAP) of US$0.07 in the
previous quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Net Loss and EPS to Non-GAAP Adjusted Net (Loss) Income and
EPS" for a reconciliation of net loss attributable to AirMedia's
shareholders and basic and diluted net loss attributable to
AirMedia's shareholders per ADS under U.S. GAAP to adjusted net
(loss) income attributable to AirMedia's shareholders (non-GAAP)
and adjusted basic and diluted net (loss) income attributable to
AirMedia's shareholders per ADS (non-GAAP).
Cash, Restricted Cash and
Short-term Investments
Cash, restricted cash and short-term investments totaled
US$113.0 million as of September 30, 2013, compared to US$126.3 million as of December 31, 2012. There were an increase of
US$7.4 million in prepaid concession
fees and an increase of US$15.4
million in other current assets from December 31, 2012.
ADS Repurchases and Expansion of Share Repurchase
Program
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. On September 24, 2012,
AirMedia's board of directors approved to increase the size of the
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. As of November 17, 2013, AirMedia had repurchased an
aggregate of 6,243,179 ADSs on the open market for a total
consideration of US$16.9 million.
Other Recent Developments
On November 20, 2013, AirMedia
commenced operations of one additional mega-size LED screen near
the security check areas of Section B in Dalian Zhoushuizi
International Airport ("Dalian Airport"), which increased the
number of AirMedia's mega-size LED screens in Dalian Airport to 6.
In October 2013, AirMedia Group
Co., Ltd. ("AM Advertising"), one of AirMedia's variable interest
entities, entered into a strategic alliance agreement with HNA
Xinhua Culture Holding Group Co., Ltd. ("HNA Culture"), a
subsidiary of HNA Group, to form an industry development fund of
in-flight internet (the "Fund") to explore the opportunity of
in-flight internet service and in-air multimedia platform.
Starting from October 8, 2013,
AirMedia extended the advertising cycle time of its stand-alone
digital frames at the baggage claim areas in Beijing Capital
International Airport to 3-minute cycles from 2-minute cycles,
which reduced the frequency of the 7.5-second advertising time
slots AirMedia offers to 320 times a day from 480 times a day,
while maintaining the same listing price per time slot. This
approach, a response to strong demand from advertisers, increased
the capacity to sell the Company's stand-alone digital frames at
the baggage claim areas in Beijing Airport to 24 time slots from 16
time slots available for sale per week.
Starting from October 8, 2013,
AirMedia extended the advertising cycle time of its mega-size LED
screens in Nanjing Lukou International Airport to 12-minute cycles
from 6-minute cycles, which reduced the frequency of the 15-second
advertising time slots AirMedia offers to 80 times a day from 160
times a day, while maintaining the same listing price per time
slot. This approach, a response to strong demand from advertisers,
increased the capacity to sell the Company's mega-size LED screens
in Nanjing Lukou International Airport to 48 time slots from 24
time slots available for sale per week.
On August 20, 2013, AirMedia
commenced operations of two mega-size LED screens above the
security check areas as well as 22 stand-alone digital frames and
70 sets of digital TV screens at Terminal 3 of Shenyang
Taoxian International Airport.
On August 14, 2013, AirMedia
commenced operations of 5 mega-size LED screens at the check-in
counter areas and above security check areas in Dalian Zhoushuizi
International Airport.
Business Outlook
AirMedia currently expects its net revenues for the fourth
quarter of 2013 to range from US$76.0
million to US$79.0 million, representing a year-over-year
decrease of 4.4% to 8.0% from the same period in 2012 and a
quarter-over-quarter increase of 11.7% to 16.1% from the previous
quarter.
AirMedia currently expects its concession fees to be less than
US$46.0 million in the fourth quarter
of 2013, representing a year-over-year increase of 1.9% from the
same period in 2012 and a quarter-over-quarter increase of 7.5%
from the previous quarter.
The above forecast reflects AirMedia's current and preliminary
view and is therefore subject to change. Please refer to the Safe
Harbor Statement below for the factors that could cause actual
results to differ materially from those contained in any
forward-looking statement.
Summary of Selected Operating Data
|
Quarter
Ended
September
30, 2013
|
|
Quarter
Ended
June
30, 2013
|
|
Quarter
Ended
September
30, 2012
|
|
Y/Y
Growth
Rate
|
|
Q/Q
Growth
Rate
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
37
|
|
36
|
|
34
|
|
8.8%
|
|
2.8%
|
Number of time
slots available for sale (2)
|
36,581
|
|
34,921
|
|
32,033
|
|
14.2%
|
|
4.8%
|
Number of time
slots sold (3)
|
15,157
|
|
11,149
|
|
12,819
|
|
18.2%
|
|
35.9%
|
Utilization
rate (4)
|
41.4%
|
|
31.9%
|
|
40.0%
|
|
1.4%
|
|
9.5%
|
Average
advertising revenue per time slot sold (5)
|
US$2,593
|
|
US$3,057
|
|
US$2,730
|
|
-5.0%
|
|
-15.2%
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens
in airports
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
33
|
|
32
|
|
34
|
|
-2.9%
|
|
3.1%
|
Number of time
slots available for sale (1)
|
16,640
|
|
16,971
|
|
16,560
|
|
0.5%
|
|
-2.0%
|
Number of time
slots sold (3)
|
4,268
|
|
3,388
|
|
6,460
|
|
-33.9%
|
|
26.0%
|
Utilization
rate (4)
|
25.6%
|
|
20.0%
|
|
39.0%
|
|
-13.4%
|
|
5.6%
|
Average
advertising revenue per time slot sold (5)
|
US$844
|
|
US$782
|
|
US$424
|
|
99.1%
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens
on airplanes
|
|
|
|
|
|
|
|
|
|
Number of
airlines in operation
|
7
|
|
7
|
|
9
|
|
-22.2%
|
|
0.0%
|
Number of time
slots available for sale (1)
|
371
|
|
370
|
|
444
|
|
-16.4%
|
|
0.3%
|
Number of time
slots sold (3)
|
153
|
|
95
|
|
168
|
|
-8.9%
|
|
61.1%
|
Utilization
rate (4)
|
41.2%
|
|
25.7%
|
|
37.8%
|
|
3.4%
|
|
15.5%
|
Average
advertising revenue per time slot sold (5)
|
US$28,993
|
|
US$35,000
|
|
US$39,155
|
|
-26.0%
|
|
-17.2%
|
|
|
|
|
|
|
|
|
|
|
Traditional Media
in airports
|
|
|
|
|
|
|
|
|
|
Numbers of locations
available for sale (6)
|
951
|
|
956
|
|
928
|
|
2.5%
|
|
-0.5%
|
Numbers of locations
sold (7)
|
560
|
|
578
|
|
621
|
|
-9.8%
|
|
-3.1%
|
Utilization rate
(8)
|
58.9%
|
|
60.5%
|
|
66.9%
|
|
-8.0%
|
|
-1.6%
|
Average advertising
revenue per location sold (9)
|
US$23,673
|
|
US$31,936
|
|
US$32,388
|
|
-26.9%
|
|
-25.9%
|
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 or 6-second equivalent advertising time units 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 or 5-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 or 6-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 third
quarter 2013 earnings at 8:00 PM U.S.
Eastern Time on November 19, 2013
(5:00 PM U.S. Pacific Time on
November 19, 2013; 9:00 AM Beijing/Hong
Kong time on November 20,
2013). 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: +852 800 930 346
International: +65 6723 9381
Pass code: AMCN
A replay of the call will be available for 1 week between
11:00 p.m. on November 19, 2013 and 11:59 p.m. on November 26,
2013, Eastern Time.
Replay Dial-in Information
U.S.: +1 855 452 5696
International: +61 2 8199 0299
Pass code: 98804217
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 and other 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) Income
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) Income 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 37 major airports and digital
TV screens in 33 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by seven
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-size LED
screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2020 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 six largest airports and four
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,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
64,246
|
73,634
|
|
Restricted
cash
|
|
8,170
|
8,026
|
|
Short-term
investments
|
|
40,605
|
44,622
|
|
Accounts receivable,
net
|
|
102,838
|
101,222
|
|
Notes
Receivable
|
|
1,685
|
-
|
|
Prepaid concession
fees
|
|
28,118
|
20,759
|
|
Amount due from
related party
|
|
634
|
1,310
|
|
Other current
assets
|
|
25,177
|
9,788
|
|
Deferred tax assets -
current
|
|
2,164
|
2,064
|
|
Total current
assets
|
|
273,637
|
261,425
|
|
Property and
equipment, net
|
|
34,608
|
45,930
|
|
Prepaid property and
equipment costs
|
|
48,880
|
-
|
|
Other intangible
assets,net
|
|
712
|
-
|
|
Long-term
investments
|
|
3,663
|
4,337
|
|
Long-term
deposits
|
|
21,372
|
22,307
|
|
Deferred tax assets -
non-current
|
|
11,642
|
8,347
|
|
Acquired intangible
assets, net
|
|
955
|
1,521
|
|
Total
assets
|
|
395,469
|
343,867
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
(including accounts payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $71,045 and $78,532 as of December 31,
|
|
|
|
|
2012 and
September 30, 2013, respectively)
|
|
81,013
|
72,895
|
|
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. $8,716 and $36,083 as of December 31,
|
|
|
|
|
2012 and
September 30, 2013, respectively)
|
|
37,810
|
10,999
|
|
Deferred revenue
(including deferred revenue of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $18,596 and $14,401 as of December 31
|
|
|
|
|
2012 and
September 30, 2013, respectively)
|
|
14,421
|
18,602
|
|
Income tax payable
(including income tax payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $169 and $3,070 as of December 31,
|
|
|
|
|
2012 and
September 30, 2013, respectively)
|
|
3,070
|
1,109
|
|
Amounts due to
related parties (including amounts due to
|
|
|
|
|
related
parties of the consolidated variable interest entities
|
|
|
|
|
without
recourse to AirMedia Group Inc. $447 and $0 as
|
|
|
|
|
of December
31, 2012 and September 30, 2013, respectively)
|
|
-
|
447
|
|
Total current
liabilities
|
|
136,314
|
104,052
|
|
Deferred tax
liability - non-current
|
|
417
|
380
|
|
Total
liabilities
|
|
136,731
|
104,432
|
|
Equity
|
|
|
|
|
Ordinary
shares
|
|
128
|
128
|
|
Additional paid-in
capital
|
|
304,163
|
278,652
|
|
Treasury
stock
|
|
(9,382)
|
(7,035)
|
|
Statutory
reserves
|
|
10,144
|
10,144
|
|
Accumulated
deficits
|
|
(85,045)
|
(72,961)
|
|
Accumulated other
comprehensive income
|
|
37,307
|
32,948
|
|
Total AirMedia
Group Inc.'s shareholders' equity
|
|
257,315
|
241,876
|
|
Noncontrolling interests
|
|
1,423
|
(2,441)
|
|
Total
equity
|
|
258,738
|
239,435
|
|
Total liabilities
and equity
|
|
395,469
|
343,867
|
|
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,
2013
|
June 30,
2013
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
69,043
|
64,345
|
73,106
|
Business tax and
other sales tax
|
|
(976)
|
(972)
|
(1,738)
|
Net
revenues
|
|
68,067
|
63,373
|
71,368
|
Cost of
revenues
|
|
59,523
|
60,075
|
62,555
|
Gross
profit
|
|
8,544
|
3,298
|
8,813
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing *
|
|
5,600
|
4,782
|
4,461
|
General and
administrative *
|
|
6,565
|
5,468
|
5,228
|
Impairment of
goodwill
|
|
-
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
9,583
|
Total operating
expenses
|
|
12,165
|
10,250
|
39,883
|
Loss from
operations
|
|
(3,621)
|
(6,952)
|
(31,070)
|
Interest
income
|
|
347
|
113
|
469
|
Other income,
net
|
|
1,603
|
735
|
379
|
Loss before income
taxes
|
|
(1,671)
|
(6,104)
|
(30,222)
|
Income tax (expenses)
benefits
|
|
(2,171)
|
1,036
|
2,972
|
Net loss before net
income of equity method investments
|
|
(3,842)
|
(5,068)
|
(27,250)
|
Net (loss) income of
equity method investments
|
|
(68)
|
27
|
(66)
|
Net
loss
|
|
(3,910)
|
(5,041)
|
(27,316)
|
Less: Net loss
attributable to noncontrolling interests
|
|
(375)
|
(92)
|
(31)
|
Net loss
attributable to AirMedia Group Inc.'s shareholders
|
|
(3,535)
|
(4,949)
|
(27,285)
|
Net loss attributable
to AirMedia Group Inc.'s shareholders per ordinary share
|
|
|
|
|
Basic
|
|
(0.03)
|
(0.04)
|
(0.22)
|
Diluted
|
|
(0.03)
|
(0.04)
|
(0.22)
|
Net loss attributable
to AirMedia Group Inc.'s shareholders per ADS
|
|
|
|
|
Basic
|
|
(0.06)
|
(0.08)
|
(0.44)
|
Diluted
|
|
(0.06)
|
(0.08)
|
(0.44)
|
Weighted average
ordinary shares outstanding used in computing net loss per
ordinary share - basic
|
|
119,683,926
|
120,639,142
|
124,123,148
|
Weighted average
ordinary shares outstanding used in computing net loss per
ordinary share - diluted
|
|
119,683,926
|
120,639,142
|
124,123,148
|
* Share-based
compensation charges included are as follow:
|
|
|
|
|
Selling and
marketing
|
|
-
|
-
|
174
|
General and
administrative
|
|
269
|
277
|
539
|
AirMedia Group
Inc.
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
|
|
(In U.S. dollars
in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2013
|
June 30,
2013
|
September 30,
2012
|
Net loss
|
(3,910)
|
(5,041)
|
(27,316)
|
Other comprehensive
income
|
742
|
3,026
|
2,548
|
Comprehensive
loss
|
(3,168)
|
(2,015)
|
(24,768)
|
Less: comprehensive
(loss) income attributable to the noncontrolling
interest
|
(374)
|
62
|
(46)
|
Comprehensive loss
attributable to AirMedia Group Inc.'s shareholders
|
(2,794)
|
(2,077)
|
(24,722)
|
AirMedia Group
Inc.
|
|
|
|
|
RECONCILIATION OF
GAAP NET LOSS AND EPS TO NON-GAAP ADJUSTED NET (LOSS) INCOME AND
EPS
|
(In U.S. dollars
in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2013
|
June 30,
2013
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to AirMedia Group Inc.'s shareholders
(GAAP)
|
|
(3,535)
|
(4,949)
|
(27,285)
|
Amortization of
acquired and other intangible assets
|
|
210
|
197
|
720
|
Share-based
compensation
|
|
269
|
277
|
713
|
Impairment of
goodwill
|
|
-
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
9,583
|
|
|
|
|
|
Adjusted net
(loss) income attributable to AirMedia Group Inc.'s shareholders
(non-GAAP)
|
|
(3,056)
|
(4,475)
|
4,342
|
|
|
|
|
|
Adjusted net
(loss) income attributable to AirMedia Group Inc.'s shareholders
per share (non-GAAP)
|
|
|
|
|
Basic
|
|
(0.03)
|
(0.04)
|
0.03
|
Diluted
|
|
(0.03)
|
(0.04)
|
0.03
|
|
|
|
|
|
Adjusted net
(loss) income attributable to AirMedia Group Inc.'s shareholders
per ADS (non-GAAP)
|
|
|
|
|
Basic
|
|
(0.05)
|
(0.07)
|
0.07
|
Diluted
|
|
(0.05)
|
(0.07)
|
0.07
|
|
|
|
|
|
Shares used in
computing adjusted basic net (loss) income attributable to AirMedia
Group Inc.'s shareholders per share (non-GAAP)
|
|
119,683,926
|
120,639,142
|
124,123,148
|
Shares used in
computing adjusted diluted net (loss) income attributable to
AirMedia Group Inc.'s shareholders per share (non-GAAP)
|
|
119,683,926
|
120,639,142
|
124,123,148
|
|
|
|
|
|
Note: 1) The Non-GAAP
adjusted net (loss) income per share and per ADS are computed using
Non-GAAP adjusted net (loss) income and number of shares and ADSs
used in GAAP basic and diluted EPS calculation, where the number of
shares and ADSs is adjusted for dilution due to the share-based
compensation plan.
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
|
|
|
RECONCILIATION OF
GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING
EXPENSES
|
(In U.S. dollars
in thousands, except for percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2013
|
June 30,
2013
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
12,165
|
10,250
|
39,883
|
Amortization of
acquired and other intangible assets
|
|
210
|
197
|
720
|
Share-based
compensation
|
|
269
|
277
|
713
|
Impairment of
goodwill
|
|
-
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
9,583
|
|
|
|
|
|
Adjusted operating
expenses (non-GAAP)
|
|
11,686
|
9,776
|
8,256
|
|
|
|
|
|
Adjusted operating
expenses as a percentage of net revenues (non-GAAP)
|
|
17.2%
|
15.4%
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
|
|
|
|
RECONCILIATION OF
GAAP LOSS FROM OPERATIONS TO NON-GAAP ADJUSTED (LOSS) INCOME FROM
OPERATIONS
|
(In U.S. dollars
in thousands, except for percentages)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2013
|
June 30,
2013
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(3,621)
|
(6,952)
|
(31,070)
|
Amortization of
acquired and other intangible assets
|
|
210
|
197
|
720
|
Share-based
compensation
|
|
269
|
277
|
713
|
Impairment of
goodwill
|
|
-
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
9,583
|
|
|
|
|
|
Adjusted (loss)
income from operations (non-GAAP)
|
|
(3,142)
|
(6,478)
|
557
|
|
|
|
|
|
Adjusted operating
margin (non-GAAP)
|
|
-4.6%
|
-10.2%
|
0.8%
|
SOURCE AirMedia Group Inc.