BEIJING, March 5, 2014 /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
fourth quarter and the full year ended December 31, 2013.
Fourth Quarter 2013 Financial Highlights
- Total revenues decreased by 6.7% year-over-year and increased
by 13.8% quarter-over-quarter to US$78.6
million. The year-over-year decrease was primarily due to
AirMedia's termination of operations of certain unprofitable
or low-margin contracts.
- Net revenues decreased by 6.6% year-over-year and increased by
13.4% quarter-over-quarter to US$77.2
million.
- Net income attributable to AirMedia's shareholders was
US$1.5 million. Basic and diluted net
income attributable to AirMedia's shareholders per American
Depositary Share ("ADS") were both US$0.02.
- 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$2.1 million. Adjusted basic net income
attributable to AirMedia's shareholders per ADS (non-GAAP),
which is adjusted net income attributable to AirMedia's
shareholders (non-GAAP) divided by the number of ADSs outstanding,
was US$0.04. Adjusted diluted net
income attributable to AirMedia's shareholders per ADS
(non-GAAP), which is adjusted net income 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$0.04.
Fiscal Year 2013 Financial
Highlights
- Total revenues decreased by 5.6% year-over-year to US$276.5 million 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 5.0% year-over-year to US272.3
million.
- Net loss attributable to AirMedia's shareholders was
US$10.6 million. Basic and diluted
net loss attributable to AirMedia's shareholders per ADS
were both US$0.18.
- Adjusted net loss attributable to AirMedia's
shareholders (non-GAAP) was US$8.5
million. Adjusted basic net loss attributable to
AirMedia's shareholders per ADS (non-GAAP) was US$0.14. Adjusted diluted net loss attributable
to AirMedia's shareholders per ADS (non-GAAP) was
US$0.14.
"Our turn-around is well on track. For the gas station
media network, as of February 28,
2014, we had started operating LED screens in 300 gas
stations in six cities. We expect to have a network effect when we
operate more than 500 LED screens in the gas stations, and expect
this product line to break even in the third quarter of this
year," commented Mr. Herman
Guo, chairman and chief executive officer of AirMedia.
"As for the TV-attached digital frames and digital TV
screens in airports, our other two unprofitable product lines, we
developed an interactive platform with a lucky draw system on our
TV-attached digital frames and are experimenting with this new
interactive platform in Beijing Capital International Airport
("Beijing Airport"). Our clients have shown strong
initial interest in this new interactive platform and we are in the
process of finalizing the advertisement contracts with
them."
"Our network of mega-size LED screens in airports
continued to grow and accounted for an increasing percentage of
revenues of the Company. We believe our mega-size LED screens and
in-flight internet business will bring further growth to the
Company in the long run," continued Mr. Guo.
"Year 2014 will be a year of change for AirMedia. We
expect to see returns on our efforts to turn around the
unprofitable products with improved financial results," Mr.
Henry Ho, AirMedia's chief
financial officer, commented.
Fourth Quarter 2013 Financial
Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
|
|
Quarter Ended
December 31,2013
|
% of Total
Revenues
|
|
Quarter Ended
September 30,2013
|
% of Total
Revenues
|
|
Quarter Ended
December 31,2012
|
% of Total
Revenues
|
|
Y/Y Growth
rate
|
|
Q/Q Growth
rate
|
Air Travel Media
Network
|
|
72,085
|
91.8%
|
|
63,315
|
91.7%
|
|
76,931
|
91.3%
|
|
-6.3%
|
|
13.9%
|
Digital frames
in airports
|
|
45,444
|
57.8%
|
|
39,308
|
56.9%
|
|
40,770
|
48.4%
|
|
11.5%
|
|
15.6%
|
Digital TV
screens in airports
|
|
5,103
|
6.5%
|
|
3,604
|
5.2%
|
|
5,408
|
6.4%
|
|
-5.6%
|
|
41.6%
|
Digital TV
screens on airplanes
|
|
4,611
|
5.9%
|
|
4,436
|
6.4%
|
|
7,874
|
9.4%
|
|
-41.4%
|
|
3.9%
|
Traditional
media in airports
|
|
14,197
|
18.1%
|
|
13,257
|
19.2%
|
|
20,802
|
24.7%
|
|
-31.8%
|
|
7.1%
|
Other revenues
in air travel
|
|
2,730
|
3.5%
|
|
2,710
|
4.0%
|
|
2,077
|
2.4%
|
|
31.4%
|
|
0.7%
|
Gas Station Media
Network
|
|
4,420
|
5.6%
|
|
3,281
|
4.8%
|
|
4,760
|
5.7%
|
|
-7.1%
|
|
34.7%
|
Other
Media
|
|
2,076
|
2.6%
|
|
2,447
|
3.5%
|
|
2,491
|
3.0%
|
|
-16.7%
|
|
-15.2%
|
Total
revenues
|
|
78,581
|
100.0%
|
|
69,043
|
100.0%
|
|
84,182
|
100.0%
|
|
-6.7%
|
|
13.8%
|
Net
revenues
|
|
77,214
|
|
|
68,067
|
|
|
82,647
|
|
|
-6.6%
|
|
13.4%
|
Total revenues for the fourth quarter of 2013 reached
US$78.6 million, representing a
year-over-year decrease of 6.7% from US$84.2
million in the same period one year ago and a
quarter-over-quarter increase of 13.8% from US$69.0 million in the previous quarter. The
year-over-year decrease was primarily due to decreases in revenues
from traditional media in airports and digital TV screens on
airplanes, which were primarily caused by AirMedia's
termination of the operations of certain unprofitable or low-margin
contracts. The quarter-over-quarter increase was primarily due to
increases in revenues from most product lines other than other
media.
Revenues from digital frames in airports
Revenues from digital frames in airports for the fourth quarter
of 2013 increased by 11.5% year-over-year and by 15.6%
quarter-over-quarter to US$45.4
million. The year-over-year increase was primarily due to
additional revenues from the rapidly growing product line of
mega-size LED screens, which added operations in additional
airports. The quarter-over-quarter increase was primarily due to
additional revenues from the rapidly growing product line of
mega-size LED screens, advertisers' year-end budget flush
and a seasonally strong quarter in the fourth quarter.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the fourth
quarter of 2013 decreased by 5.6% year-over-year and increased by
41.6% quarter-over-quarter to US$5.1
million. The year-over-year decrease was primarily due to a
drop in demand from advertisers as a result of competition from
AirMedia's other product lines and the fact that, with the
rapid development of mobile internet, more people now pay attention
to their cell phones instead of AirMedia's digital TV
screens. The quarter-over-quarter increase was primarily due to
advertisers' year-end budget flush and a seasonally strong
quarter in the fourth quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the fourth
quarter of 2013 decreased by 41.4% year-over-year and increased by
3.9% quarter-over-quarter to US$4.6
million. AirMedia did not renew its concession rights
contract with Air China, which expired on December 31, 2012, but regained 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 from digital TV screens on Air
China's airplanes. The quarter-over-quarter increase of
revenues from digital TV screens on airplanes was primarily due to
a seasonally strong quarter in the fourth quarter.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the fourth
quarter of 2013 decreased by 31.8% year-over-year and increased by
7.1% quarter-over-quarter to US$14.2
million. The year-over-year decrease was primarily due to
AirMedia's termination of certain unprofitable or low-margin
contracts. AirMedia decided not to renew the concession rights
contracts for most of AirMedia's traditional media in
Shenzhen Baoan International Airport at the end of 2012 and the
billboards and painted advertisements on the gate bridges of
Terminal 3 in Beijing Airport in May and July 2013 after the expiration of the relevant
contracts. The quarter-over-quarter increase was primarily due to
advertisers' year-end budget flush and a seasonally strong
quarter in the fourth quarter.
Revenues from the gas station media
network
Revenues from the gas station media network for the fourth
quarter of 2013 decreased by 7.1% year-over-year and increased by
34.7% quarter-over-quarter to US$4.4
million. The year-over-year decrease was primarily due to
temporary service suspension caused by the gap between the
retirement of the old scrolling light boxes and the full operation
of the replacing new LED screens in gas stations across many
cities. The quarter-over-quarter increase was primarily due to
advertisers' strong demand for AirMedia's
already-installed LED screens in gas stations, as well as
advertisers' year-end budget flush and a seasonally strong
quarter in the fourth quarter.
AirMedia's LED screens in gas stations change pictures
every 10 seconds and rotate in 3-minute cycles, which provides 18
time slots available for sale. As of February 28, 2014, AirMedia operated LED screens
in 300 gas stations in six cities, compared to 240 LED screens in
six cities as of December 31,
2013.
Revenues from other media
Revenues from other media were primarily revenues from unipole
signs and other outdoors media. Revenues from other media for the
fourth quarter of 2013 decreased by 16.7% year-over-year and by
15.2% quarter-over-quarter to US$2.1
million. The year-over-year decrease was primarily due to
the expiration of the contracts for some locations in November and
December 2012, which generated some
revenues in the fourth quarter of 2012. The quarter-over-quarter
decrease was due to a seasonally weak quarter for AirMeida's
other media whose main advertisers are high-end real
estate.
Business tax and other sales tax
Business tax and other sales tax for the fourth quarter of 2013
were US$1.4 million, compared to
US$1.5 million in the same period one
year ago and US$976,000 in the
previous quarter.
Net revenues
Net revenues for the fourth quarter of 2013 reached US$77.2 million, representing a year-over-year
decrease of 6.6% from US$82.6 million
in the same period one year ago and a quarter-over-quarter increase
of 13.4% from US$68.1 million in the
previous quarter.
Cost of Revenues
Cost of revenues for the fourth quarter of 2013 was US$65.0 million, which remained relatively
unchanged from the same period one year ago and reflected a
quarter-over-quarter increase of 9.1% from US$59.5 million in the previous quarter. The
quarter-over-quarter increase was primarily due to higher
concession fees and higher agency fees for third-party advertising
agencies in the fourth quarter of 2013. Cost of revenues as a
percentage of net revenues in the fourth quarter of 2013 was 84.1%,
up from 79.1% in the same period one year ago and down from 87.4%
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 2013 increased by 1.1%
year-over-year and by 6.7% quarter-over-quarter to US$45.6 million. The year-over-year and
quarter-over-quarter increases were 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 2013 was 59.1%, increasing from 54.6% in the same period
one year ago and decreasing from 62.8% in the previous quarter. The
year-over-year increase of concession fees as a percentage of net
revenues was primarily due to the fact that net revenues decreased
while concession fees increased. The quarter-over-quarter decrease
of concession fees as a percentage of net revenues was primarily
due to the fact that net revenues increased faster than concession
fees in the fourth quarter of 2013.
Gross Profit
Gross profit for the fourth quarter of 2013 decreased by 28.9%
year-over-year and increased by 43.5% quarter-over-quarter to
US$12.3 million.
Gross profit as a percentage of net revenues for the fourth
quarter of 2013 was 15.9%, compared to 20.9% in the same period one
year ago and 12.6% in the previous quarter. The year-over-year
decrease in gross profit as a percentage of net revenues was
primarily due to the fact that net revenues decreased faster than
cost of revenues. The quarter-over-quarter increase in gross profit
as a percentage of net revenues was primarily due to the fact that
net revenues increased faster than cost of revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
|
Quarter Ended
December 31,2013
|
% of Net
Revenues
|
|
Quarter Ended
September 30,2013
|
% of Net
Revenues
|
|
Quarter Ended
December 31,2012
|
% of Net
Revenues
|
|
Y/Y Growth
rate
|
Q/Q Growth
rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
5,465
|
7.1%
|
|
5,600
|
8.2%
|
|
5,289
|
6.4%
|
|
3.3%
|
-2.4%
|
General and
administrative expenses
|
8,812
|
11.4%
|
|
6,565
|
9.6%
|
|
5,430
|
6.6%
|
|
62.3%
|
34.2%
|
Total operating
expenses
|
14,277
|
18.5%
|
|
12,165
|
17.8%
|
|
10,719
|
13.0%
|
|
33.2%
|
17.4%
|
Adjusted operating
expenses
(non-GAAP)
|
13,617
|
17.6%
|
|
11,686
|
17.2%
|
|
9,721
|
11.8%
|
|
40.1%
|
16.5%
|
Total operating expenses for the fourth quarter of 2013 were
US$14.3 million, representing a
year-over-year increase of 33.2% from US$10.7 million in the same period one year ago
and a quarter-over-quarter increase of 17.4% from US$12.2 million in the previous quarter.
Share-based compensation expenses included in the total
operating expenses for the fourth quarter of 2013 were US$425,000, compared to US$804,000 in the same period one year ago and
US$269,000 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$13.6
million for the fourth quarter of 2013, representing a
year-over-year increase of 40.1% from US$9.7
million in the same period one year ago and a
quarter-over-quarter increase of 16.5% from US$11.7 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 17.6% in the fourth quarter of
2013, compared to 11.8% in the same period one year ago and 17.2%
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 fourth quarter of 2013
were US$5.5 million. This represented
a year-over-year increase of 3.3% from US$5.3 million and a quarter-over-quarter
decrease of 2.4% from US$5.6 million
in the previous quarter. The year-over-year increase was primarily
due to higher professional fees, higher expenses of office and
equipments, and higher travel expenses.
General and administrative expenses for the fourth quarter of
2013 were US$8.8 million, including
share-based compensation expenses of US$425,000. This represented a year-over-year
increase of 62.3% from US$5.4 million
in the same period one year ago and a quarter-over-quarter increase
of 34.2% from US$6.6 million in the
previous quarter. The year-over-year and quarter-over-quarter
increases were primarily due to higher salary expenses associated
with more headcount for new businesses and higher bad-debt
provisions.
Loss/Income from Operations
Loss from operations for the fourth quarter of 2013 was
US$2.0 million, compared to income
from operations of US$6.5 million in
the same period one year ago and loss from operations of
US$3.6 million in the previous
quarter. Loss from operations as a percentage of net revenues for
the fourth quarter of 2013 was negative 2.6%, compared to 7.9% in
the same period one year ago and negative 5.3% 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$1.4 million
for the fourth quarter of 2013, compared to adjusted income from
operations (non-GAAP) of US$7.5
million in the same period one year ago and adjusted loss
from operations (non-GAAP) of US$3.1
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 1.8% for the fourth quarter of 2013, compared to 9.1% in
the same period one year ago and negative 4.6% in the previous
quarter.
Please refer to the attached table captioned
"Reconciliation of GAAP (Loss) Income from Operations to
Non-GAAP Adjusted (Loss) Income from Operations" for a
reconciliation of (loss) income from operations under U.S. GAAP to
adjusted (loss) income from operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax benefits for the fourth quarter of 2013 were
US$1.8 million, compared to income
tax expenses of US$4.2 million in the
same period one year ago and income tax expenses of US$2.2 million in the previous quarter.
Net Income/Loss Attributable
to AirMedia's Shareholders
Net income attributable to AirMedia's shareholders for
the fourth quarter of 2013 was US$1.5
million, compared to net income attributable to
AirMedia's shareholders of US3.4 million in the same period
one year ago and net loss attributable to AirMedia's
shareholders of US$3.5 million in the
previous quarter. The basic net income attributable to
AirMedia's shareholders per ADS for the fourth quarter of
2013 was US$0.02, compared to basic
net income attributable to AirMedia's shareholders per ADS
of US$0.05 in the same period one
year ago and basic net loss attributable to AirMedia's
shareholders per ADS of US$0.06 in
the previous quarter. The diluted net income attributable to
AirMedia's shareholders per ADS for the fourth quarter of
2013 was US$0.02, compared to diluted
net income attributable to AirMedia's shareholders per ADS
of US$0.05 in the same period one
year ago and diluted net loss attributable to AirMedia's
shareholders per ADS of US$0.06 in
the previous quarter.
Adjusted net income attributable to AirMedia's
shareholders (non-GAAP) was US$2.1
million for the fourth quarter of 2013, compared to adjusted
net income attributable to AirMedia's shareholders
(non-GAAP) of US$4.4 million the same
period one year ago and adjusted net loss attributable to
AirMedia's shareholders (non-GAAP) of US$3.1 million in the previous quarter. Adjusted
basic net income attributable to AirMedia's shareholders per
ADS (non-GAAP) was US$0.04 for the
fourth 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$0.05 in the previous quarter. Adjusted diluted
net income attributable to AirMedia's shareholders per ADS
(non-GAAP) was US$0.04 for the fourth
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$0.05 in the previous quarter.
Please refer to the attached table captioned
"Reconciliation of GAAP Net Income (Loss) and EPS to
Non-GAAP Adjusted Net Income (Loss) and EPS" for a
reconciliation of net income (loss) attributable to
AirMedia's shareholders and basic and diluted net income
(loss) attributable to AirMedia's shareholders per ADS under
U.S. GAAP to adjusted net income (loss) attributable to
AirMedia's shareholders (non-GAAP) and adjusted basic and
diluted net income (loss) attributable to AirMedia's
shareholders per ADS (non-GAAP).
Fiscal Year 2013 Financial Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
|
|
Year ended D
ecember 31,
2013
|
% of Total
Revenues
|
|
Year ended
December 31,
2012
|
% of Total
Revenues
|
|
Y/Y Growth
rate
|
Air Travel Media
Network
|
|
256,644
|
92.8%
|
|
268,509
|
91.6%
|
|
-4.4%
|
Digital frames
in airports
|
|
152,346
|
55.1%
|
|
137,342
|
46.9%
|
|
10.9%
|
Digital TV
screens in airports
|
|
14,110
|
5.1%
|
|
13,731
|
4.7%
|
|
2.8%
|
Digital TV
screens on airplanes
|
|
16,160
|
5.8%
|
|
26,612
|
9.1%
|
|
-39.3%
|
Traditional
media in airports
|
|
64,845
|
23.5%
|
|
83,478
|
28.5%
|
|
-22.3%
|
Other revenues
in air travel
|
|
9,183
|
3.3%
|
|
7,346
|
2.4%
|
|
25.0%
|
Gas Station Media
Network
|
|
12,726
|
4.6%
|
|
14,217
|
4.9%
|
|
-10.5%
|
Other
Media
|
|
7,146
|
2.6%
|
|
10,239
|
3.5%
|
|
-30.2%
|
Total
revenues
|
|
276,516
|
100.0%
|
|
292,965
|
100.0%
|
|
-5.6%
|
Net
revenues
|
|
272,266
|
|
|
286,742
|
|
|
-5.0%
|
Total revenues for the fiscal year 2013 were US$276.5 million, representing a year-over-year
decrease of 5.6% from US$293.0
million in fiscal year 2012. The year-over-year decrease was
primarily due to the decreases in revenues from traditional media
in airports, digital TV screens on airplanes, other media, and gas
station media network, which were partially offset by increases in
revenues from digital frames in airports, other revenues in air
travel, and digital TV screens in airports.
Revenues from digital frames in
airports
Revenues from digital frames in airports for fiscal year 2013
increased by 10.9% year-over-year to US$152.3 million from US$137.3 million in fiscal year 2012 primarily
due to the additional revenues from the rapidly growing product
line of mega-size LED screens.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for fiscal year
2013 increased by 2.8% year-over-year to US$14.1 million due to Company's continued
sales efforts.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for fiscal year
2013 decreased by 39.3% year-over-year to US$16.2 million primarily due to the decrease in
revenues from digital TV screens on Air China's airplanes.
AirMedia did not renew its concession rights contract with Air
China, which expired on December 31,
2012, but regained some advertising time on Air
China's airplanes on August 1,
2013.
Revenues from traditional media in
airports
Revenues from traditional media in airports for fiscal year 2013
decreased by 22.3% year-over-year to US$64.8
million. The year-over-year decrease was primarily due to
AirMedia's decision not to renew certain unprofitable or
low-margin contracts after expiration.
Revenues from the gas station media
network
Revenues from the gas station media network for fiscal year 2013
decreased by 10.5% year-over-year to US$12.7
million due to the temporary service suspension caused by
the gap between the retirement of the old scrolling light boxes and
the full operation of the replacing new LED screens in gas stations
across many cities.
Revenues from other media
Revenues from other media were primarily revenues contributed by
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 2013 decreased by 30.2% year-over-year to
US$7.1 million due to the expiration
of the contracts for some locations in November and December 2012.
Business tax and other sales tax
Business tax and other sales tax for fiscal year 2013 was
US$4.3 million, representing a
year-over-year decrease of 31.7% from US$6.2
million in fiscal year 2012 due to China's replacement of regular business
tax with 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 fiscal year 2013. The majority of the
Company's business tax and other sales tax in fiscal year
2013 were other sales tax.
Net revenues for fiscal year 2013 were US$272.3 million, representing a year-over-year
decrease of 5.0% from US$286.7
million in fiscal year 2012.
Cost of Revenues
Cost of revenues for fiscal year 2013 was US$244.7 million, representing a year-over-year
decrease of 2.4% from US$250.6
million in fiscal year 2012, primarily due to a decrease in
agency fees for third-party advertising agencies. Cost of revenues
as a percentage of net revenues in fiscal year 2013 increased to
89.9% from 87.4% in fiscal year 2012.
Concession fees for fiscal year 2013 were US$181.0 million, representing a year-over-year
increase of 1.7% from US$178.0
million in fiscal year 2012, primarily due to new signed and
renewed concession contracts entered into in 2013, which were
partially offset by a decrease in concession fees of certain
unprofitable or low-margin contracts which AirMedia's
didn't renew after expiration. Concession fees as a
percentage of net revenues in fiscal year 2013 increased to 66.5%
from 62.1% in fiscal year 2012 primarily due to the fact that
concession fees increased while net revenues decreased in 2013.
Gross Profit
Gross profit for fiscal year 2013 was US$27.6 million, representing a year-over-year
decrease of 23.6% from US$36.1
million in fiscal year 2012.
Gross profit as a percentage of net revenues for fiscal year
2013 was 10.1%, down from 12.6% in fiscal year 2012. The decrease
in gross profit as a percentage of net revenues was primarily due
to the fact that net revenues decreased faster than cost of
revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
|
|
|
|
|
|
|
|
|
Year ended
December 31,
2013
|
% of Net
Revenues
|
|
Year ended
December 31,
2012
|
% of Net
Revenues
|
|
Y/Y Growth
rate
|
Selling and marketing
expenses
|
20,069
|
7.4%
|
|
17,995
|
6.3%
|
|
11.5%
|
General and
administrative expenses
|
25,723
|
9.4%
|
|
21,842
|
7.6%
|
|
17.8%
|
Impairment of
goodwill
|
-
|
-
|
|
20,611
|
7.2%
|
|
-100.0%
|
Impairment of
intangible asset
|
-
|
-
|
|
9,583
|
3.3%
|
|
-100.0%
|
Total operating
expenses
|
45,792
|
16.8%
|
|
70,031
|
24.4%
|
|
-34.6%
|
Adjusted operating
expenses (non-GAAP)
|
43,704
|
16.1%
|
|
33,700
|
11.8%
|
|
29.7%
|
Total operating expenses for fiscal year 2013 were US$45.8 million, representing a year-over-year
decrease of 34.6% from US$70.0
million in fiscal year 2012. The year-over-year decrease was
primarily due to the fact that there was an impairment of goodwill
of US$20.6 million and an impairment
of intangible asset of US$9.6 million
in fiscal year 2012.
Total operating expenses for fiscal year 2013 included
share-based compensation expenses of US$1.3
million, compared to US$3.5
million in fiscal year 2012. Adjusted operating expenses
(non-GAAP) for fiscal year 2013 were US$43.7
million, representing a year-over-year increase of 29.7%
from US$33.7 million in fiscal year
2012. Adjusted operating expenses as a percentage of net revenues
(non-GAAP) in fiscal year 2013 was 16.1%, up from 11.8% in fiscal
year 2012.
Selling and marketing expenses for fiscal year 2013 were
US$20.1 million, increasing 11.5%,
year-over-year from US$18.0 million
in fiscal year 2012, primarily due to higher expenses related to
the Company's direct sales force, higher service fees,
higher expenses of office and equipments, and higher travel
expenses.
General and administrative expenses for fiscal year 2013 were
US$25.7 million, including
US$1.3 million of share-based
compensation expenses, increasing 17.8% year-over-year from
US$21.8 million in fiscal year 2012,
primarily due to higher salary expenses associated with more
headcount for new businesses, higher bad-debt provisions, higher
expenses of office and equipments and higher professional fees.
Loss/Income from Operations
Loss from operations for fiscal year 2013 was US$18.2 million, compared to loss from operations
of US$33.9 million in fiscal year
2012. Loss from operations as a percentage of net revenues for
fiscal year 2013 was negative 6.7%, compared to negative 11.8% in
fiscal year 2012.
Adjusted loss from operations (non-GAAP) for fiscal year 2013
was US$16.1 million, compared to
adjusted income from operations (non-GAAP) of US$2.4 million in fiscal year 2012. Adjusted
operating margin (non-GAAP) for fiscal year 2013 was negative 5.9%,
compared to 0.8% in fiscal year 2012.
Please refer to the attached table for a reconciliation of loss
from operations under U.S. GAAP to adjusted income (loss) from
operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax benefits for fiscal year 2013 were US$1.7 million, compared to income tax expenses
of US$2.5 million in fiscal year
2012.
Net Loss/Income Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for
fiscal year 2013 was US$10.6 million,
compared to net loss attributable to AirMedia's shareholders
of US$32.7 million in fiscal year
2012. Basic net loss attributable to AirMedia's shareholders
per ADS for fiscal year 2013 was US$0.18, compared to basic net loss attributable
to AirMedia's shareholders per ADS of US$0.53 in fiscal year 2012. Diluted net loss
attributable to AirMedia's shareholders per ADS for fiscal
year 2013 was US$0.18, compared to
diluted net loss attributable to AirMedia's shareholders per
ADS of US$0.53 in fiscal year
2012.
Adjusted netloss attributable to AirMedia's shareholders
(non-GAAP) for fiscal year 2013 was US$8.5
million, compared to adjusted net income attributable to
AirMedia's shareholders (non-GAAP) of US$3.6 million in fiscal year 2012. Basic and
diluted adjusted net loss attributable to AirMedia's
shareholders per ADS (non-GAAP) for fiscal year 2013 were both
US$0.14, compared to basic and
diluted adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.06 in fiscal year 2012.
Please refer to the attached table for a reconciliation of (a)
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 (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.
Cash, Restricted Cash and
Short-term Investments
Cash, restricted cash and short-term investments totaled
US$113.0 million as of December 31, 2013, compared to US$126.3 million as of December 31, 2012. There were an increase of
US$8.5 million in prepaid concession
fees and an increase of US$10.6
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 March 2, 2014,
AirMedia had repurchased an aggregate of 6,532,429 ADSs on the open
market for a total consideration of US$17.4
million.
Director Announcement
On January 1, 2014, AirMedia
appointed Dr. Jack Qunyao Gao and Mr. Peixin Xu as directors of the Company, with Dr.
Gao being an independent director. Both Mr. Xu and Dr. Gao were
nominated by Bison Capital Holding Company Limited ("Bison
Capital") in connection with Bison Capital's investment in
AirMedia through its purchase of 8,100,000 American Depositary
Shares from Global Gateway Investments, Ltd.
Other Recent Developments
On January 3, 2014, AirMedia
renewed its concession rights contract of 14 stand-alone digital
frames, 155 TV-attached digital frames and 28 digital TV screens in
Guangzhou Baiyun International Airport from January 1, 2014 to December 31, 2014.
On January 2, 2014, AirMedia
renewed its concession rights contract of 95 digital TV screens and
90 TV-attached digital frames at Terminal 1 and 2 of Beijing
Capital International Airport from January
1, 2014 to December 31,
2014.
Business Outlook
AirMedia currently expects its net revenues for the first
quarter of 2014 to range from US$61.0
million to US$64.0 million, representing a year-over-year
decrease of 4.1% to a year-over-year increase of 0.6% from the same
period in 2013 and a quarter-over-quarter decrease of 21.0% to
17.1% from the previous quarter.
AirMedia currently expects its concession fees to be
approximately US$45.0 million in the
first quarter of 2014, representing a quarter-over-quarter decrease
of 1.4% 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
December 31,2013
|
|
Quarter Ended
September 30,2013
|
|
Quarter Ended
December 31,2012
|
|
Y/Y Growth
Rate
|
|
Q/Q Growth
Rate
|
|
Year Ended
December 31,2013
|
|
Year Ended
December 31, 2012
|
|
Y/Y Growth
Rate
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
31
|
|
37
|
|
34
|
|
-8.8%
|
|
-16.2%
|
|
31
|
|
34
|
|
-8.8%
|
Number of time
slots available for sale (2)
|
36,146
|
|
36,581
|
|
33,018
|
|
9.5%
|
|
-1.2%
|
|
141,922
|
|
131,060
|
|
8.3%
|
Number of time
slots sold (3)
|
16,275
|
|
15,157
|
|
14,756
|
|
10.3%
|
|
7.4%
|
|
56,010
|
|
49,558
|
|
13.0%
|
Utilization
rate (4)
|
45.0%
|
|
41.4%
|
|
44.7%
|
|
0.3%
|
|
3.6%
|
|
39.5%
|
|
37.8%
|
|
1.7%
|
Average
advertising revenue per time slot sold (5)
|
US$2,792
|
|
US$2,593
|
|
US$2,763
|
|
1.0%
|
|
7.7%
|
|
US$2,720
|
|
US$2,771
|
|
-1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens
in airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
31
|
|
33
|
|
34
|
|
-8.8%
|
|
-6.1%
|
|
31
|
|
34
|
|
-8.8%
|
Number of time
slots available for sale (1)
|
16,823
|
|
16,640
|
|
16,560
|
|
1.6%
|
|
1.1%
|
|
66,994
|
|
67,592
|
|
-0.9%
|
Number of time
slots sold (3)
|
6,946
|
|
4,268
|
|
9,088
|
|
-23.6%
|
|
62.7%
|
|
19,452
|
|
23,385
|
|
-16.8%
|
Utilization
rate (4)
|
41.3%
|
|
25.6%
|
|
54.9%
|
|
-13.6%
|
|
15.7%
|
|
29.0%
|
|
34.6%
|
|
-5.6%
|
Average
advertising revenue per time slot sold (5)
|
US$735
|
|
US$844
|
|
US$595
|
|
23.5%
|
|
-12.9%
|
|
US$725
|
|
US$587
|
|
23.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens
on airplanes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
airlines in operation
|
7
|
|
7
|
|
9
|
|
-22.2%
|
|
-
|
|
7
|
|
9
|
|
-22.2%
|
Number of time
slots available for sale (1)
|
373
|
|
371
|
|
444
|
|
-16.0%
|
|
0.5%
|
|
1486
|
|
1,776
|
|
-16.3%
|
Number of time
slots sold (3)
|
143
|
|
153
|
|
234
|
|
-38.9%
|
|
-6.5%
|
|
527
|
|
781
|
|
-32.5%
|
Utilization
rate (4)
|
38.3%
|
|
41.2%
|
|
52.7%
|
|
-14.4%
|
|
-2.9%
|
|
35.5%
|
|
44.0%
|
|
-8.5%
|
Average
advertising revenue per time slot sold (5)
|
US$32,245
|
|
US$28,993
|
|
US$33,650
|
|
-4.2%
|
|
11.2%
|
|
US$30,662
|
|
US$34,074
|
|
-10.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media
in airports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations
available for sale (6)
|
1,004
|
|
951
|
|
979
|
|
2.6%
|
|
5.6%
|
|
3,849
|
|
3,751
|
|
2.6%
|
Numbers of locations
sold (7)
|
632
|
|
560
|
|
573
|
|
10.3%
|
|
12.9%
|
|
2,316
|
|
2,461
|
|
-5.9%
|
Utilization rate
(8)
|
62.9%
|
|
58.9%
|
|
58.5%
|
|
4.4%
|
|
4.0%
|
|
60.2%
|
|
65.6%
|
|
-5.4%
|
Average advertising
revenue per location sold (9)
|
US$22,469
|
|
US$23,673
|
|
US$36,304
|
|
-38.1%
|
|
-5.1%
|
|
US$27,999
|
|
US$33,920
|
|
-17.5%
|
Notes:
(1) A time slot is defined as a 30-second equivalent advertising
time unit for digital TV screens in airports and digital TV screens
on airplanes, which is shown during each advertising cycle on a
weekly basis in a given airport or on a monthly basis on the routes
of a given airline, respectively. AirMedia's airport
advertising programs are shown repeatedly on a daily basis during a
given week in one-hour cycles and each hour of programming includes
20 minutes of advertising content, which allows the Company to sell
a maximum of 40 time slots per week. The number of time slots
available for sale for the digital TV screens in airports during
the period presented is calculated by multiplying the time slots
available for sale per week per airport by the number of weeks
during the period presented when AirMedia had operations in each
airport and then calculating the sum of all the time slots
available for sale for each of the Company's network
airports. The length of AirMedia's in-flight programs
typically ranges from approximately 45 minutes to an hour per
flight, approximately five to 13 minutes of which consist of
advertising content. The number of time slots available for sale
for our digital TV screens on airplanes during the period presented
is calculated by multiplying the time slots per airline per month
by the number of months during the period presented when AirMedia
had operations on each airline and then calculating the sum of all
the time slots available for sale for each of its network
airlines.
(2) A time slot is defined as a 12-second equivalent advertising
time 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 fourth
quarter 2013 earnings at 8:00 PM U.S.
Eastern Time on March 5, 2014
(5:00 PM U.S. Pacific Time on
March 5, 2014; 9:00 AM Beijing/Hong
Kong time on March 6, 2014).
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 67239381
Pass code: AMCN
A replay of the call will be available for 1 week between
11:00 p.m. on March 5, 2014 and 11:59
p.m. on March 12, 2014, Eastern
Time.
Replay Dial-in Information
U.S.: +1 855 452 5696
International: +1 646 254 3697
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 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) Income 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) Income 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 31 major airports and digital
TV screens in 31 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)
|
|
|
|
|
|
|
|
|
December 31,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
59,652
|
73,634
|
|
Restricted
cash
|
|
10,366
|
8,026
|
|
Short-term
investments
|
|
42,949
|
44,622
|
|
Accounts receivable,
net
|
|
107,529
|
101,222
|
|
Notes
Receivable
|
|
1,901
|
-
|
|
Prepaid concession
fees
|
|
29,307
|
20,759
|
|
Amount due from
related party
|
|
187
|
1,310
|
|
Other current
assets
|
|
20,437
|
9,788
|
|
Deferred tax assets -
current
|
|
2,776
|
2,064
|
|
Total current
assets
|
|
275,104
|
261,425
|
|
Prepaid property and
equipment costs
|
|
49,415
|
-
|
|
Property and
equipment, net
|
|
36,084
|
45,930
|
|
Long-term
deposits
|
|
20,497
|
22,307
|
|
Deferred tax assets -
non-current
|
|
11,755
|
8,347
|
|
Long-term
investments
|
|
7,829
|
4,337
|
|
Acquired intangible
assets, net
|
|
1,446
|
1,521
|
|
Other Non-Current
Assets
|
|
661
|
-
|
|
Total
assets
|
|
402,791
|
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 $75,182 as of December 31,
|
|
|
|
|
2012 and
December 31, 2013, respectively)
|
|
81,157
|
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 $8,016 as of December 31,
|
|
|
|
|
2012 and
December 31, 2013, respectively)
|
|
10,883
|
10,999
|
|
Deferred revenue
(including deferred revenue of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $18,596 and $17,374 as of December 31
|
|
|
|
|
2012 and
December 31, 2013, respectively)
|
|
17,380
|
18,602
|
|
Income tax payable
(including income tax payable of the
|
|
|
|
|
consolidated
variable interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $169 and $455 as of December 31,
|
|
|
|
|
2012 and
December 31, 2013, respectively)
|
|
1,667
|
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 nil as
|
|
|
|
|
of December
31, 2012 and December 31, 2013, respectively)
|
|
-
|
447
|
|
Total current
liabilities
|
|
111,087
|
104,052
|
|
Deferred tax
liability - non-current
|
|
361
|
380
|
|
Total
liabilities
|
|
111,448
|
104,432
|
|
Equity
|
|
|
|
|
Ordinary
shares
|
|
128
|
128
|
|
Additional paid-in
capital
|
|
313,912
|
278,652
|
|
Treasury
stock
|
|
(9,860)
|
(7,035)
|
|
Statutory
reserves
|
|
10,968
|
10,144
|
|
Accumulated
deficits
|
|
(84,411)
|
(72,961)
|
|
Accumulated other
comprehensive income
|
|
40,229
|
32,948
|
|
Total AirMedia
Group Inc.'s shareholders' equity
|
|
270,966
|
241,876
|
|
Noncontrolling interests
|
|
20,377
|
(2,441)
|
|
Total
equity
|
|
291,343
|
239,435
|
|
Total liabilities
and equity
|
|
402,791
|
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
|
|
Year
Ended
|
|
|
December 31,
2013
|
September 30,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
78,581
|
69,043
|
84,182
|
|
276,516
|
292,965
|
Business tax and
other sales tax
|
|
(1,367)
|
(976)
|
(1,535)
|
|
(4,250)
|
(6,223)
|
Net
revenues
|
|
77,214
|
68,067
|
82,647
|
|
272,266
|
286,742
|
Cost of
revenues
|
|
64,956
|
59,523
|
65,397
|
|
244,673
|
250,606
|
Gross
profit
|
|
12,258
|
8,544
|
17,250
|
|
27,593
|
36,136
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and
marketing *
|
|
5,465
|
5,600
|
5,289
|
|
20,069
|
17,995
|
General and
administrative *
|
|
8,812
|
6,565
|
5,430
|
|
25,723
|
21,842
|
Impairment of
goodwill
|
|
-
|
-
|
-
|
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
-
|
|
-
|
9,583
|
Total operating
expenses
|
|
14,277
|
12,165
|
10,719
|
|
45,792
|
70,031
|
(Loss) income from
operations
|
|
(2,019)
|
(3,621)
|
6,531
|
|
(18,199)
|
(33,895)
|
Interest
income
|
|
365
|
347
|
402
|
|
1,213
|
1,355
|
Other income,
net
|
|
754
|
1,603
|
531
|
|
3,822
|
2,770
|
(Loss) income
before income taxes
|
|
(900)
|
(1,671)
|
7,464
|
|
(13,164)
|
(29,770)
|
Income tax benefits
(expenses)
|
|
1,805
|
(2,171)
|
(4,216)
|
|
1,713
|
(2,493)
|
Net income (loss)
before net income of equity method investments
|
|
905
|
(3,842)
|
3,248
|
|
(11,451)
|
(32,263)
|
Net (loss) income of
equity method investments
|
|
(4)
|
(68)
|
(26)
|
|
(69)
|
22
|
Net income
(loss)
|
|
901
|
(3,910)
|
3,222
|
|
(11,520)
|
(32,241)
|
Less: Net (loss)
income attributable to noncontrolling interests
|
|
(557)
|
(375)
|
(132)
|
|
(894)
|
487
|
Net income
(loss) attributable to AirMedia Group Inc.'s
shareholders
|
|
1,458
|
(3,535)
|
3,354
|
|
(10,626)
|
(32,728)
|
Net income (loss)
attributable to AirMedia Group Inc.'s shareholders per ordinary
share
|
|
|
|
|
|
|
|
Basic
|
|
0.01
|
(0.03)
|
0.03
|
|
(0.09)
|
(0.26)
|
Diluted
|
|
0.01
|
(0.03)
|
0.03
|
|
(0.09)
|
(0.26)
|
Net income (loss)
attributable to AirMedia Group Inc.'s shareholders per
ADS
|
|
|
|
|
|
|
|
Basic
|
|
0.02
|
(0.06)
|
0.05
|
|
(0.18)
|
(0.53)
|
Diluted
|
|
0.02
|
(0.06)
|
0.05
|
|
(0.18)
|
(0.53)
|
Weighted average
ordinary shares outstanding used in computing net income
(loss) per ordinary share - basic
|
|
119,517,056
|
119,683,926
|
122,551,330
|
|
120,386,635
|
124,269,245
|
Weighted average
ordinary shares outstanding used in computing net income
(loss) per ordinary share - diluted
|
|
119,540,735
|
119,683,926
|
122,575,370
|
|
120,386,635
|
124,269,245
|
* Share-based
compensation charges included are as follow:
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
-
|
-
|
91
|
|
-
|
859
|
General and
administrative
|
|
425
|
269
|
713
|
|
1,251
|
2,643
|
AirMedia Group
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
(In U.S. dollars
in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2013
|
September 30,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
Net income
(loss)
|
901
|
(3,910)
|
3,222
|
|
(11,520)
|
(32,241)
|
Other comprehensive
income
|
3,075
|
742
|
2,002
|
|
7,582
|
2,144
|
Comprehensive
income (loss)
|
3,976
|
(3,168)
|
5,224
|
|
(3,938)
|
(30,097)
|
Less: comprehensive
(loss) income attributable to the noncontrolling
interest
|
(404)
|
(374)
|
(205)
|
|
(593)
|
417
|
Comprehensive
income (loss) attributable to AirMedia Group Inc.'s
shareholders
|
4,380
|
(2,794)
|
5,429
|
|
(3,345)
|
(30,514)
|
AirMedia Group
Inc.
|
RECONCILIATION OF
GAAP NET INCOME (LOSS) AND EPS TO NON-GAAP ADJUSTED NET INCOME
(LOSS) AND EPS
|
(In U.S. dollars
in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2013
|
September 30,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AirMedia Group Inc.'s shareholders
(GAAP)
|
|
1,458
|
(3,535)
|
3,354
|
|
(10,626)
|
(32,728)
|
Amortization of
acquired intangible assets
|
|
235
|
210
|
194
|
|
837
|
2,635
|
Share-based
compensation
|
|
425
|
269
|
804
|
|
1,251
|
3,502
|
Impairment of
goodwill
|
|
-
|
-
|
-
|
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
-
|
|
-
|
9,583
|
Adjusted net
income (loss) attributable to AirMedia Group Inc.'s shareholders
(non-GAAP)
|
|
2,118
|
(3,056)
|
4,352
|
|
(8,538)
|
3,603
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) attributable to AirMedia Group Inc.'s shareholders
per share (non-GAAP)
|
|
|
|
|
|
|
|
Basic
|
|
0.02
|
(0.03)
|
0.04
|
|
(0.07)
|
0.03
|
Diluted
|
|
0.02
|
(0.03)
|
0.04
|
|
(0.07)
|
0.03
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) attributable to AirMedia Group Inc.'s shareholders
per ADS (non-GAAP)
|
|
|
|
|
|
|
|
Basic
|
|
0.04
|
(0.05)
|
0.07
|
|
(0.14)
|
0.06
|
Diluted
|
|
0.04
|
(0.05)
|
0.07
|
|
(0.14)
|
0.06
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted basic net income (loss) attributable to AirMedia
Group Inc.'s shareholders per share (non-GAAP)
|
|
119,517,056
|
119,683,926
|
122,551,330
|
|
120,386,635
|
124,269,245
|
Shares used in
computing adjusted diluted net income (loss) attributable to
AirMedia Group Inc.'s shareholders per share (non-GAAP)
|
|
119,540,735
|
119,683,926
|
122,575,370
|
|
120,386,635
|
124,275,255
|
|
|
|
|
|
|
|
|
Note: 1) The Non-GAAP
adjusted net income per share and per ADS are computed using
Non-GAAP adjusted net 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
|
|
Year
Ended
|
|
|
December 31,
2013
|
September 30,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
14,277
|
12,165
|
10,719
|
|
45,792
|
70,031
|
Amortization of
acquired intangible assets
|
|
235
|
210
|
194
|
|
837
|
2,635
|
Share-based
compensation
|
|
425
|
269
|
804
|
|
1,251
|
3,502
|
Impairment of
goodwill
|
|
-
|
-
|
-
|
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
-
|
|
-
|
9,583
|
|
|
|
|
|
|
|
|
Adjusted operating
expenses (non-GAAP)
|
|
13,617
|
11,686
|
9,721
|
|
43,704
|
33,700
|
|
|
|
|
|
|
|
|
Adjusted operating
expenses as a percentage of net revenues (non-GAAP)
|
|
17.6%
|
17.2%
|
11.8%
|
|
16.1%
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AirMedia Group
Inc.
|
RECONCILIATION OF
GAAP INCOME (LOSS) FROM OPERATIONS TO NON-GAAP ADJUSTED (LOSS)
INCOME FROM OPERATIONS
|
(In U.S. dollars
in thousands, except for percentages)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2013
|
September 30,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
|
(2,019)
|
(3,621)
|
6,531
|
|
(18,199)
|
(33,895)
|
Amortization of
acquired intangible assets
|
|
235
|
210
|
194
|
|
837
|
2,635
|
Share-based
compensation
|
|
425
|
269
|
804
|
|
1,251
|
3,502
|
Impairment of
goodwill
|
|
-
|
-
|
-
|
|
-
|
20,611
|
Impairment of
intangible assets
|
|
-
|
-
|
-
|
|
-
|
9,583
|
|
|
|
|
|
|
|
|
Adjusted (loss)
income from operations (non-GAAP)
|
|
(1,359)
|
(3,142)
|
7,529
|
|
(16,111)
|
2,436
|
|
|
|
|
|
|
|
|
Adjusted operating
margin (non-GAAP)
|
|
-1.8%
|
-4.6%
|
9.1%
|
|
-5.9%
|
0.8%
|
SOURCE AirMedia Group Inc.