Exhibit 99.1
Exhibit 99.1
AirMedia Announces Unaudited Second Quarter 2011 Financial Results
Beijing, China — August 18, 2011 — 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 second quarter
ended June 30, 2011.
Second Quarter 2011 Financial and Business Highlights
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Total revenues increased by 3.9% year-over-year to US$58.5 million. |
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Net loss attributable to AirMedia’s shareholders was US$8.6 million, which included a
non-cash loss on the disposal of certain fixed assets of US$4.2 million and an impairment
of intangible asset of US$656,000. Basic and diluted net loss attributable to AirMedia’s
shareholders per American Depositary Share (“ADS”) were both US$0.13. |
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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 intangible assets, and impairment of intangible assets, was
US$6.1 million. Adjusted basic and diluted net loss attributable to AirMedia’s
shareholders per ADS (non-GAAP) were both US$0.09. |
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The Company continued generating positive operating cash flow in excess of
capital expenditures in the second quarter of 2011. Other than restricted cash of US$6.1
million, cash increased to US$114.5 million as of June 30, 2011, from US$106.5 million as
of December 31, 2010. |
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AirMedia started to put advertisements on the interior and exterior of the gate bridges
at Terminal 3 of the Beijing Capital International Airport on May 7, 2011 and June 13,
2011, respectively. These advertisements on the gate bridges at Terminal 3 of the Beijing
Airport generated revenues of US$2.2 million in the second quarter of 2011. |
“Our business was heavily impacted in the second quarter due to the fact that the automobile
industry was one of our top advertising industries. The Japanese earthquake negatively affected the
supply chains of automobile manufacturers, and as a result, many of them reduced their advertising
orders in the second quarter of 2011, especially those for new car model releases. However, we are
happy to see a strong comeback from automobile industry in the third quarter with sizable
advertising orders, including orders from Japanese automobile manufacturers. We expect to see
advertising orders from automobile industry continue to more fully recover in the fourth quarter of
this year,” commented Herman Guo, chairman and chief executive officer of AirMedia. “At the same
time, we are also making progress in diversifying our revenue sources.”
“We are also pleased with having resolved issues of delay with gate bridge advertisements at
Terminal 3 of the Beijing airport. For the third quarter of 2011, we will have advertising revenues
from the Terminal 3 gate bridges for a full quarter that we expect to be sufficient to cover the
corresponding quarterly concession fees,” added Mr. Guo
“We are disappointed at the second quarter revenue results. The impact from the automobile industry
was more severe than what we had anticipated. However, I would like to point out that our net loss
in the second quarter included non-cash charges of US$4.9 million from the disposal of certain
fixed assets and the impairment of intangible asset. With the recovery of automobile-related
advertising and the Terminal 3 gate bridges fully contributing to our revenues, we expect to see
improvements in our bottom line results in the third quarter of 2011,” Ping Sun, AirMedia’s chief
financial officer, commented.
Second Quarter 2011 Financial Results
Revenues
Total
revenues by product line (numbers in US$ 000’s except for percentages):
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Quarter |
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Quarter |
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Quarter |
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Y/Y |
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Q/Q |
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Ended June |
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% of Total |
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Ended March |
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% of Total |
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Ended June |
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% of Total |
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Growth |
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Growth |
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30, 2011 |
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Revenues |
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31, 2011 |
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Revenues |
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30, 2010 |
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Revenues |
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rate |
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rate |
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Air Travel Media Network |
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54,669 |
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93.4 |
% |
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56,973 |
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92.9 |
% |
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52,559 |
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93.3 |
% |
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4.0 |
% |
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-4.0 |
% |
Digital frames in airports |
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27,364 |
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46.7 |
% |
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30,192 |
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49.2 |
% |
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27,019 |
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48.0 |
% |
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1.3 |
% |
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-9.4 |
% |
Digital TV screens in airports |
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3,911 |
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6.7 |
% |
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5,209 |
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8.5 |
% |
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6,550 |
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11.6 |
% |
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-40.3 |
% |
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-24.9 |
% |
Digital TV screens on airplanes |
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5,608 |
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9.6 |
% |
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6,799 |
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11.1 |
% |
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5,872 |
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10.4 |
% |
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-4.5 |
% |
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-17.5 |
% |
Traditional media in airports |
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16,056 |
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27.4 |
% |
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13,901 |
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22.7 |
% |
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12,241 |
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21.7 |
% |
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31.2 |
% |
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15.5 |
% |
Other revenues in air travel |
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1,730 |
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3.0 |
% |
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872 |
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1.4 |
% |
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877 |
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1.6 |
% |
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97.3 |
% |
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98.4 |
% |
Gas Station Media Network |
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1,373 |
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2.3 |
% |
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1,799 |
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2.9 |
% |
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801 |
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1.4 |
% |
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71.4 |
% |
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-23.7 |
% |
Other Media |
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2,488 |
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4.3 |
% |
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2,581 |
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4.2 |
% |
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2,971 |
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5.3 |
% |
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-16.3 |
% |
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-3.6 |
% |
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Total revenues |
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58,530 |
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100.0 |
% |
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61,353 |
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100.0 |
% |
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56,331 |
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100.0 |
% |
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3.9 |
% |
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-4.6 |
% |
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Net revenues |
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57,014 |
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59,901 |
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55,085 |
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3.5 |
% |
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-4.8 |
% |
In the second quarter of 2011, many of AirMedia’s automobile advertisers delayed or cancelled
their orders due to impact from the Japanese earthquake, which resulted in a weak year-over-year
growth and a quarter-over-quarter decrease in total revenues.
Total revenues for the second quarter of 2011 reached US$58.5 million, representing a
year-over-year increase of 3.9% from US$56.3 million and a quarter-over-quarter decrease of 4.6%
from US$61.4 million. The year-over-year increase was due to increases in revenues from traditional
media in airports, other revenues in air travel, gas station media network and digital frames in
airports. The quarter-over-quarter decrease was primarily due to decreases in revenues from the
digital product lines.
Revenues from digital frames in airports
Revenues from digital frames in airports for the second quarter of 2011 increased by 1.3%
year-over-year and decreased by 9.4% quarter-over-quarter to US$27.4 million. The year-over-year
increase was due to an increase in the number of time slots sold, which was partially offset by a
decrease in the average advertising revenue per time slot sold (the “ASP”). The
quarter-over-quarter decrease was primarily due to a decrease in the ASP. Please refer to “Summary
of Selected Operating Data” below for detailed definitions of the operating data cited in this
press release.
The number of time slots sold for the second quarter of 2011 increased by 5.1% year-over-year and
by 0.9% quarter-over-quarter to 10,422 time slots. The year-over-year increase was due to our
continued dedicated sales efforts. The quarter-over-quarter increase was primarily due to the lower
ASP in the second quarter of 2011. AirMedia operated digital frames in 35 airports in the second
quarter of 2011, up from 33 airports at the end of the second quarter of 2010 and unchanged from
the end of the first quarter of 2011. The number of time slots available for sale for the second
quarter of 2011 increased by 5.2% year-over-year and by 0.8% quarter-over-quarter to 34,398 time
slots. The year-over-year increase was primarily due to the increase in the number of airports in
AirMedia’s digital frame network. The slight quarter-over-quarter increase was primarily due to
there being one more operating day in the second quarter of 2011 than in the previous quarter. The
utilization rate of digital frames for the second quarter of 2011 was 30.3%, which remained
relatively unchanged year-over-year and quarter-over-quarter.
2
The ASP of digital frames for the second quarter of 2011 decreased by 3.6% year-over-year and by
10.2% quarter-over-quarter to US$2,626. The year-over-year decrease was primarily due to changes in
the mix of time slots sold, which was partially offset by an increase in the listing prices of our
digital frames in some airports in January 2011. The number of time slots sold in the top three
airports, which have significantly higher ASPs than the time slots sold in other airports,
accounted for a much lower percentage of total number of time slots sold in the second quarter of
2011 than in the same period one year ago. To make up the loss of automobile advertisers’ budgets
cut, AirMedia offered higher discounts to new clients to stimulate their demands and orders. The
quarter-over-quarter decrease was primarily due to higher discounts offered in the second quarter
of 2011 than in the previous quarter.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the second quarter of 2011 decreased by 40.3%
year-over-year and by 24.9% quarter-over-quarter to US$3.9 million. The year-over-year and
quarter-over-quarter decreases were primarily due to decreases in the number of time slots sold,
which were partially offset by increases in the ASP of digital TV screens in the airports.
The number of time slots sold for the second quarter of 2011 decreased by 54.4% year-over-year and
by 31.4% quarter-over-quarter to 2,438 time slots. The year-over-year and quarter-over-quarter
decreases were primarily due to a drop in demand and the higher ASP during the second quarter of
2011, which resulted in fewer time slots sold when advertisers did not increase their advertising
spending at the same speed as the increase in ASP. The number of time slots available for sale for
the second quarter of 2011 decreased by 19.6% year-over-year and by 1.8% quarter-over-quarter to
18,446 time slots. The year-over-year decrease was primarily due to the fact that AirMedia
shortened advertising time within each one-hour program to 20 minutes from 25 minutes after it
became the operator of CCTV’s Air Channel, to better attract air travelers’ attention. The
quarter-over-quarter decrease was primarily due to the termination of operation of digital TV
screens in Hangzhou Xiaoshan International Airport on March 1, 2011. The utilization rate for the
second quarter of 2011 decreased by 10.1 percentage points year-over-year and by 5.7 percentage
points quarter-over-quarter to 13.2%, primarily due to the decreases in the number of time slots
sold, which were partially offset by the decreases in the number of time slots available for sale.
The ASP of digital TV screens in airports for the second quarter of 2011 increased by 30.8%
year-over-year and by 9.5% quarter-over-quarter to US$1,604. The year-over-year and quarter
increases were primarily due to lower discounts in the second quarter of 2011 than in the same
period one year ago and in the previous quarter, and changes in the mix of time slots sold. The
number of time slots sold in the top three airports, which have significantly higher ASPs than
those sold in other airports, accounted for a higher percentage of total number of time slots sold
in the second quarter of 2011 than in the same period one year ago and in the previous quarter.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the second quarter of 2011 decreased by 4.5%
year-over-year and by 17.5% quarter-over-quarter to US$5.6 million. The year-over-year and
quarter-over-quarter decreases were primarily due to decreases in the number of time slots sold.
The number of time slots sold for the second quarter of 2011 decreased by 25.9% year-over-year and
by 17.2% quarter-over-quarter to 192 time slots. The year-over-year and quarter-over-quarter
decreases were due to a drop in demand and the higher ASP during the second quarter of 2011, which
resulted in fewer time slots sold when advertisers did not increase their advertising spending at
the same speed as the increase in ASP. The number of time slots available for sale for the second
quarter of 2011 increased by 4.5% year-over-year to 414 time slots and remained unchanged
quarter-over-quarter. The year-over-year increase was primarily due to our operating of the digital
media on Hainan Airlines’ airplanes, which was partially offset by the termination of our operating
arrangement for the digital TV screens on Xiamen Airlines’ airplanes. The utilization rate for the
second quarter of 2011 decreased by 19.0 percentage points year-over-year and 9.6 percentage points
quarter-over-quarter to 46.4%. The year-over-year and quarter-over-quarter decreases were primarily
due to the decreases in the number of time slots sold.
3
The ASP of digital TV screens on airplanes for the second quarter of 2011 increased by 28.8%
year-over-year and decreased by 0.4% quarter-over-quarter to US$29,208. The year-over-year increase
in the ASP was due to an increase in the listing prices of digital TV screens on the airplanes of
Air China and China Southern Airlines in January 2011, lower discounts offered in the second
quarter of 2011 than in the same period one year ago and the change in the mix of the time slots
sold. The number of time slots sold on the three largest airlines, which have significantly higher
ASPs than the time slots sold on other airlines, accounted for a higher percentage in the second
quarter of 2011 than in the same period one year ago. The quarter-over-quarter decrease in the ASP
was primarily due to changes in the mix of the time slots sold, partially offset by lower discounts
offered in the second quarter of 2011 than in the previous quarter. The number of time slots sold
on the three largest airlines, which have significantly higher ASPs than the time slots sold on the
other airlines, accounted for a lower percentage in the second quarter of 2011 than in the previous
quarter.
Revenues from traditional media in airports
Revenues from traditional media in airports for the second quarter of 2011 increased by 31.2%
year-over-year and by 15.5% quarter-over-quarter to US$16.1 million, which included US$2.2 million
revenues from the gate bridges at Terminal 3 of Beijing Capital International Airport. The
year-over-year and quarter-over-quarter increases were primarily due to increases in the number of
locations sold, which were partially offset by decreases in the ASP of traditional media in
airports.
The number of locations sold for the second quarter of 2011 increased by 39.6% year-over-year and
by 21.6% quarter-over-quarter to 635 locations primarily due to continued sales efforts and growing
acceptance of AirMedia’s traditional media in airports. The number of locations available for sale
for the second quarter of 2011 increased by 26.5% year-over-year and by 1.9% quarter-over-quarter
to 892 locations. The year-over-year increase was primarily due to the newly signed contracts for
billboards and painted advertisements on the gate bridges at Terminal 3 of Beijing Capital
International Airport and the commencement of operations of light boxes in Dalian Zhoushuizi
International Airport in September 2010. The quarter-over-quarter increase was primarily due to the
newly signed contracts for billboards and painted advertisements on the gate bridges at Terminal 3
of Beijing Capital International Airport. The utilization rate of traditional media for the second
quarter of 2011 increased by 6.7 percentage points year-over-year and decreased by 11.5 percentage
points quarter-over-quarter to 71.2%. The year-over-year and quarter-over-quarter increases were
due to the increase in the number of locations sold, partially offset by the increase in the number
of locations available for sale.
The ASP of traditional media in airports for the second quarter of 2011 decreased by 6.0%
year-over-year and by 5.1% quarter-over-quarter to US$25,285. The year-over-year and
quarter-over-quarter decreases were primarily due to more locations with lower listing prices sold
in the second quarter of 2011 than in the same period one year ago and in the previous quarter.
Revenues from the gas station media network
Revenues from the gas station media network for the second quarter of 2011 increased by 71.4%
year-over-year and decreased by 23.7% quarter-over-quarter to US$1.4 million.
AirMedia intends to substantially reduce its shares in Beijing AirMedia Jinshi Advertising Co.,
Ltd., its subsidiary which operates the gas station media network.
4
Revenues from other media
Revenues from other media were primarily revenues from Beijing AirMedia City Outdoor Advertising
Co., Ltd., a company AirMedia acquired in January 2010 which operates unipole signs and other
outdoors media. Revenues from other media for the second quarter of 2011 decreased by 16.3%
year-over-year and by 3.6% quarter-over-quarter to US$2.5 million.
Business tax and other sales tax
Business tax and other sales tax for the second quarter of 2011 were US$1.5 million, compared to
US$1.2 million in the same period one year ago and US$1.5 million in the previous quarter. For
purposes of calculating the amount of business and other sales tax, concession fees are deducted
from total revenues, as permitted under applicable PRC tax law.
Net revenues
Net revenues for the second quarter of 2011 reached US$57.0 million, representing a year-over-year
increase of 3.5% from US$55.1 million and a quarter-over-quarter decrease of 4.8% from US$59.9
million.
Cost of Revenues
Cost of revenues for the second quarter of 2011 was US$60.8 million, representing a year-over-year
increase of 25.0% from US$48.6 million and a quarter-over-quarter increase of 8.2% from US$56.2
million. The year-over-year increase was primarily due to an increase in concession fees, a
non-cash loss on the disposal of certain fixed assets of US$4.2 million, higher agency fees paid to
third-party advertising agencies, and higher depreciation cost. The quarter-over-quarter increase
was primarily due to a non-cash loss on the disposal of certain fixed assets of US$4.2 million and
an increase in concession fees. Cost of revenues as a percentage of net revenues in the second
quarter of 2011 was 106.6%, compared to 88.2% in the same period one year ago and 93.8% 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 second quarter of 2011 increased by 18.6% year-over-year and by 4.3%
quarter-over-quarter to US$39.5 million. The year-over-year increase was primarily due to newly
signed or renewed concession rights contracts during the period. The quarter-over-quarter increase
was primarily due to the newly signed contracts for billboards and painted advertisement on the
gate bridges at Terminal 3 of Beijing Capital International Airport, which had more operational
time in the second quarter of 2011. Concession fees as a percentage of net revenues in the second
quarter of 2011 was 69.3%, increasing from 60.4% in the same period one year ago and increasing
from 63.2% in the previous quarter. The year-over-year and quarter-over-quarter increases of
concession fees as a percentage of net revenues were primarily due to the newly signed contracts
for billboards and painted advertisement on gate bridges, which have a very low profit margin.
Gross Profit/Loss
Gross loss for the second quarter of 2011 was US$3.8 million, compared to gross profit of US$6.5
million in the same period one year ago and gross profit of US$3.7 million in the previous quarter.
5
Gross loss as a percentage of net revenues for the second quarter of 2011 was negative 6.6%,
compared to gross profit as a percentage of net revenues of 11.8% in the same period one year ago
and gross profit as a percentage of net revenues of 6.2% in the previous quarter. The
year-over-year decrease in gross profit as a percentage of net revenues was primarily due to the
increase in cost of revenues. The quarter-over-quarter decrease in gross profit as a percentage of
net revenues was due to the increase in cost of revenues and the decrease in net revenues.
Operating Expenses
Operating
expenses (numbers in US$ 000’s except for percentages):
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Quarter |
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Quarter |
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Quarter |
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Y/Y |
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Q/Q |
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Ended June |
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% of Net |
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Ended March |
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% of Net |
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Ended June |
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% of Net |
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Growth |
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Growth |
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30, 2011 |
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Revenues |
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31, 2011 |
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Revenues |
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30, 2010 |
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Revenues |
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rate |
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rate |
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Selling and marketing expenses |
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4,536 |
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8.0 |
% |
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4,289 |
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7.2 |
% |
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4,545 |
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8.3 |
% |
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-0.2 |
% |
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5.8 |
% |
General and administrative expenses |
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4,343 |
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7.6 |
% |
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4,854 |
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8.1 |
% |
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7,679 |
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13.9 |
% |
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-43.4 |
% |
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-10.5 |
% |
Impairment of intangible asset |
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656 |
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1.1 |
% |
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— |
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0.0 |
% |
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— |
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0.0 |
% |
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N/A |
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N/A |
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Total operating expenses |
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9,535 |
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16.7 |
% |
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9,143 |
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15.3 |
% |
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12,224 |
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22.2 |
% |
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-22.0 |
% |
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4.3 |
% |
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Adjusted operating expenses
(Non-GAAP) |
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6,988 |
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12.3 |
% |
|
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7,495 |
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|
12.5 |
% |
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7,914 |
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14.4 |
% |
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-11.7 |
% |
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-6.8 |
% |
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Total operating expenses for the second quarter of 2011 were US$9.5 million, representing a
year-over-year decrease of 22.0% from US$12.2 million and a quarter-over-quarter increase of 4.3%
from US$9.1 million.
Total operating expenses for the second quarter of 2011 included share-based compensation expenses
of US$938,000, compared to share-based compensation expenses of US$3.4 million in the same period
one year ago and share-based compensation expenses of US$709,000 in the previous quarter. The
year-over-year decrease in share-based compensation expenses was primarily due to one-time
share-based compensation expenses of US$1.6 million in the second quarter of 2010. The
quarter-over-quarter increases in share-based compensation expenses were primarily due to a
re-pricing of stock options. On June 7, 2011, to provide better incentive to its employees, the
Compensation Committee of AirMedia’s board of directors approved an adjustment to the exercise
price of certain outstanding stock options which were granted on March 22, 2011. The revised
exercise price for each option is US$1.57 per ordinary share, or US$3.14 per ADS.
Adjusted operating expenses (non-GAAP) for the second quarter of 2011, which excluded share-based
compensation expenses, amortization of acquired intangible assets, and impairment of intangible
assets, were US$7.0 million, representing a year-over-year decrease of 11.7% from US$7.9 million
and a quarter-over-quarter decrease of 6.8% from US$7.5 million. Adjusted operating expenses as a
percentage of net revenues (non-GAAP) in the second quarter of 2011 was 12.3%, compared to 14.4% in
the same period one year ago and 12.5% 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 second quarter of 2011 were US$4.5 million, including
share-based compensation expenses of US$284,000. This remained relatively unchanged year-over-year
and increased by 5.8% quarter-over-quarter from US$4.3 million in the previous quarter. The
year-over-year change was primarily due to higher professional fees, higher expenses related to the
expansion of the gas station media network and higher sales commissions for direct sales force,
which were partially offset by lower share-based compensation expenses. The quarter-over-quarter
increase was primarily due to higher professional fees.
6
General and administrative expenses for the second quarter of 2011 were US$4.3 million, including
share-based compensation expenses of US$654,000. This represented a year-over-year decrease of
43.4% from US$7.7 million and a quarter-over-quarter decrease of 10.5% from US$4.9 million. The
year-over-year decrease was primarily due to lower share-based compensation expenses, lower
bad-debt provisions and lower professional fees. The quarter-over-quarter decrease was primarily
due to lower bad-debt provisions, which was partially offset by higher share-based compensation
expenses.
AirMedia recorded an impairment of intangible asset of US$656,000 in the second quarter of 2011 for
the fire prevention bulletin board advertisement business due to a decrease in the total projected
discounted cash flow from its operations. AirMedia holds 75% equity interest in this subsidiary.
Loss from Operations
Loss from operations for the second quarter of 2011 was US$13.3 million, as compared to loss from
operations of US$5.8 million in the same period one year ago and loss from operations of US$5.4
million in the previous quarter.
Adjusted loss from operations (non-GAAP) for the second quarter of 2011, which excluded share-based
compensation expenses, amortization of acquired intangible assets, and impairment of intangible
assets, was US$10.8 million, compared to adjusted loss from operations (non-GAAP) of US$1.4 million
in the same period one year ago and adjusted loss from operations (non-GAAP) of US$3.8 million in
the previous quarter. Adjusted operating margin (non-GAAP) for the second quarter of 2011, which
excluded the effect of share-based compensation expenses, amortization of acquired intangible
assets, and impairment of intangible assets, was negative 18.9%, compared to negative 2.6% in the
same period one year ago and negative 6.3% in the previous quarter.
Please refer to the attached table captioned “Reconciliation of GAAP Loss from Operations to
Non-GAAP Adjusted Loss from Operations” for a reconciliation of loss from operations under U.S.
GAAP to adjusted loss from operations (non-GAAP).
Income Tax Benefits/Expenses
Income tax benefits for the second quarter of 2011 were US$2.5 million, compared to income tax
expenses of US$19,000 in the same period one year ago and income tax expenses of US$522,000 in the
previous quarter. AirMedia has calculated income tax provision using the estimated Annual Effective
Tax Rate approach in the second quarter of 2011, a switch of practice from applying actual
effective tax rate previously. The estimated Annual Effective Tax Rate is 11.4% for 2011.
Net Loss Attributable to AirMedia’s Shareholders
Net loss attributable to AirMedia’s shareholders for the second quarter of 2011 was US$8.6 million,
compared to net loss attributable to AirMedia’s shareholders of US$4.7 million in the same period
one year ago and net loss attributable to AirMedia’s shareholders of US$3.9 million in the previous
quarter. The basic net loss attributable to AirMedia’s shareholders per ADS for the second quarter
of 2011 was US$0.13, compared to basic net loss attributable to AirMedia’s shareholders per ADS of
US$0.07 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 loss attributable to AirMedia’s
shareholders per ADS for the second quarter of 2011 was US$0.13, compared to diluted net loss
attributable to AirMedia’s shareholders per ADS of US$0.07 in the same period one year ago and
diluted net loss attributable to AirMedia’s shareholders per ADS of US$0.06 in the previous
quarter.
7
Adjusted net loss attributable to AirMedia’s shareholders (non-GAAP) for the second quarter of
2011, which is net loss attributable to AirMedia’s shareholders excluding share-based compensation
expenses, amortization of acquired intangible assets, and impairment of intangible assets, was
US$6.1 million, compared to adjusted net loss attributable to AirMedia’s shareholders (non-GAAP) of
US$424,000 in the same period one year ago and adjusted net loss attributable to AirMedia’s
shareholders (non-GAAP) of US$2.3 million in the previous quarter. Basic adjusted net loss
attributable to AirMedia’s shareholders per ADS (non-GAAP) for the second quarter of 2011 was
US$0.09, compared to basic adjusted net loss attributable to AirMedia’s shareholders per ADS
(non-GAAP) of US$0.01 in the same period one year ago and basic adjusted net loss attributable to
AirMedia’s shareholders per ADS (non-GAAP) of US$0.03 in the previous quarter. Diluted adjusted net
loss attributable to AirMedia’s shareholders per ADS (non-GAAP) for the second quarter of 2011 was
US$0.09, compared to diluted adjusted net loss attributable to AirMedia’s shareholders per ADS
(non-GAAP) of US$0.01 in the same period one year ago and diluted adjusted net loss attributable to
AirMedia’s shareholders per ADS (non-GAAP) of US$0.03 in the previous quarter.
Please refer to the attached table captioned “Reconciliation Of GAAP Net Loss and EPS To Non-GAAP
Adjusted Net Loss 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 attributable to AirMedia’s shareholders (non-GAAP) and basic and diluted adjusted
net loss attributable to AirMedia’s shareholders per ADS (non-GAAP).
Cash and Restricted Cash
Other than restricted cash of US$6.1 million, cash totaled US$114.5 million as of June 30, 2011,
compared to US$106.5 million as of December 31, 2010. The increase in cash from December 31, 2010
was primarily due to cash flow from operations.
ADS Repurchases
On March 21, 2011, AirMedia’s board of directors authorized AirMedia to repurchase up to US$20
million of its own outstanding American Depositary Shares (“ADSs”) within two years from March 21,
2011. As of August 14, 2011, AirMedia had repurchased an aggregate of 1,341,741 ADSs on the open
market for a total consideration of US$5.1 million.
Management Buy-back Announcement
During the period from May 26, 2011 to June 30, 2011, AirMedia’s chairman and chief executive
officer, Herman Guo, purchased a total of 422,124 ADSs at an average price of US$3.45 per ADS, with
an approximate value of US$1,456,693 from the public market. The purchases were made under the
account of Mr. Guo’s wife.
Update on Advertisements on the Gate Bridges at Terminal 3 of the Beijing Airport
At Terminal 3 of the Beijing Capital International Airport, AirMedia started to put advertisements
on the interior of the gate bridges on May 7, 2011 and on the exterior of the gate bridges on June
13, 2011. Advertisements on the gate Bridges at Terminal 3 of the Beijing Airport generated
revenues of US$2.2 million in the second quarter of 2011.
AirMedia currently expects that the revenues from the gate bridges at Terminal 3 of the Beijing
Capital International Airport in the third quarter of 2011 will be sufficient to cover their
quarterly concession fees during the corresponding period.
8
Other Recent Developments
On August 12, 2011, AirMedia commenced operations of two Mega-size LED screens at the newly opened
Terminal 3 of Changsha Huanghua International Airport in Hunan province, which were installed above
the domestic security check areas.
On July 22, 2011, AirMedia commenced operations of four sets of digital TV screens at the security
check areas in Guiyang Longdongbao International Airport in Guizhou province.
On July 22, 2011, AirMedia commenced operations of four sets of digital TV screens at the security
check areas in Haikou Meilan International Airport in Hainan province.
On July 8, 2011, AirMedia commenced operations of 21 sets of stand-alone digital frames and 56 sets
of digital TV screens in Nanchang Changbei International Airport in Jiangxi province.
Business Outlook
AirMedia currently expects that its total revenues for the third quarter of 2011 will range from
US$67.0 million to US$69.0 million, representing a year-over-year increase of 10.6% to 13.9% from
the same period in 2010 and a quarter-over-quarter increase of 14.5% to 17.9% from the previous
quarter.
AirMedia currently expects that concession fees will be approximately US$41.5 million in the third
quarter of 2011. The quarter-over-quarter increase from the second quarter of 2011 will be
primarily due to the full quarter operation of advertisements on the gate bridges at Terminal 3 of
the Beijing Capital International Airport.
The above forecast reflects AirMedia’s current and preliminary view and is therefore subject to
change. Please refer to the Safe Harbor Statement below for the factors that could cause actual
results to differ materially from those contained in any forward-looking statement.
9
Summary of Selected Operating Data
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|
| |
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Y/Y |
|
|
Q/Q |
|
| |
|
Ended June |
|
|
Ended March |
|
|
Ended June |
|
|
Growth |
|
|
Growth |
|
| |
|
30, 2011 |
|
|
31, 2011 |
|
|
30, 2010 |
|
|
Rate |
|
|
Rate |
|
Digital frames in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation |
|
|
35 |
|
|
|
35 |
|
|
|
33 |
|
|
|
6.1 |
% |
|
|
0.0 |
% |
Number of time slots available for sale (2) |
|
|
34,398 |
|
|
|
34,139 |
|
|
|
32,708 |
|
|
|
5.2 |
% |
|
|
0.8 |
% |
Number of time slots sold (3) |
|
|
10,422 |
|
|
|
10,327 |
|
|
|
9,918 |
|
|
|
5.1 |
% |
|
|
0.9 |
% |
Utilization rate (4) |
|
|
30.3 |
% |
|
|
30.2 |
% |
|
|
30.3 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
2,626 |
|
|
US$ |
2,924 |
|
|
US$ |
2,724 |
|
|
|
-3.6 |
% |
|
|
-10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation |
|
|
37 |
|
|
|
37 |
|
|
|
37 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Number of time slots available for sale (1) |
|
|
18,446 |
|
|
|
18,780 |
|
|
|
22,950 |
|
|
|
-19.6 |
% |
|
|
-1.8 |
% |
Number of time slots sold (3) |
|
|
2,438 |
|
|
|
3,555 |
|
|
|
5,344 |
|
|
|
-54.4 |
% |
|
|
-31.4 |
% |
Utilization rate (4) |
|
|
13.2 |
% |
|
|
18.9 |
% |
|
|
23.3 |
% |
|
|
-10.1 |
% |
|
|
-5.7 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
1,604 |
|
|
US$ |
1,465 |
|
|
US$ |
1,226 |
|
|
|
30.8 |
% |
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on airplanes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in operation |
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Number of time slots available for sale (1) |
|
|
414 |
|
|
|
414 |
|
|
|
396 |
|
|
|
4.5 |
% |
|
|
0.0 |
% |
Number of time slots sold (3) |
|
|
192 |
|
|
|
232 |
|
|
|
259 |
|
|
|
-25.9 |
% |
|
|
-17.2 |
% |
Utilization rate (4) |
|
|
46.4 |
% |
|
|
56.0 |
% |
|
|
65.4 |
% |
|
|
-19.0 |
% |
|
|
-9.6 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
29,208 |
|
|
US$ |
29,325 |
|
|
US$ |
22,672 |
|
|
|
28.8 |
% |
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations available for sale (6) |
|
|
892 |
|
|
|
875 |
|
|
|
705 |
|
|
|
26.5 |
% |
|
|
1.9 |
% |
Numbers of locations sold (7) |
|
|
635 |
|
|
|
522 |
|
|
|
455 |
|
|
|
39.6 |
% |
|
|
21.6 |
% |
Utilization rate (8) |
|
|
71.2 |
% |
|
|
59.7 |
% |
|
|
64.5 |
% |
|
|
6.7 |
% |
|
|
11.5 |
% |
Average advertising revenue per location sold (9) |
|
US$ |
25,285 |
|
|
US$ |
26,631 |
|
|
US$ |
26,903 |
|
|
|
-6.0 |
% |
|
|
-5.1 |
% |
| |
|
|
Notes: |
| |
| (1) |
|
A time slot is defined as a 30-second equivalent advertising time unit for digital TV
screens in airports and digital TV screens on airplanes, which is shown during each
advertising cycle on a weekly basis in a given airport or on a monthly basis on the routes of
a given airline, respectively. AirMedia’s airport advertising programs are shown repeatedly on
a daily basis during a given week in one-hour cycles and each hour of programming includes 20
minutes of advertising content, which allows the Company to sell a maximum of 40 time slots
per week. The number of time slots available for sale for the digital TV screens in airports
during the period presented is calculated by multiplying the time slots available for sale per
week per airport by the number of weeks during the period presented when AirMedia had
operations in each airport and then calculating the sum of all the time slots available for
sale for each of the Company’s network airports. The length of AirMedia’s in-flight programs
typically ranges from approximately 45 minutes to an hour per flight, approximately five to 13
minutes of which consist of advertising content. The number of time slots available for sale
for our digital TV screens on airplanes during the period presented is calculated by
multiplying the time slots per airline per month by the number of months during the period
presented when AirMedia had operations on each airline and then calculating the sum of all the
time slots available for sale for each of its network airlines. |
| |
| (2) |
|
A time slot is defined as a 12-second equivalent advertising time unit for digital frames in
airports, which is shown during each standard advertising cycle on a weekly basis in a given
airport. AirMedia’s standard airport advertising programs are shown repeatedly on a daily
basis during a given week in 10-minute cycles, which allows the Company to sell a maximum of
50 time slots per week. The length of time slot and advertising program cycle of some digital
frames in several airports are different from the standard ones. The number of time slots
available for sale for the digital frames in airports during the period presented is
calculated by multiplying the time slots per week per airport by the number of weeks during
the period presented when the Company had operations in each airport and then calculating the
sum of all the time slots available for each of its network airports. |
| |
| (3) |
|
Number of time slots sold refers to the number of 30-second equivalent advertising time units
for digital TV screens in airports and digital TV screens on airplanes or 12-second equivalent
advertising time units for digital frames in airports sold during the period presented. |
10
| |
|
|
| (4) |
|
Utilization rate for digital TV screens in airports, digital TV screens on airplanes and
digital frames in airports refers to total time slots sold as a percentage of total time slots
available for sale during the relevant period. |
| |
| (5) |
|
Average advertising revenue per time slot sold for digital TV screens in airports, digital TV
screens on airplanes and digital frames in airports is calculated by dividing the Company’s
revenues derived from digital TV screens in airports, digital TV screens on airplanes and
digital frames in airports respectively by the respective number of time slots sold. |
| |
| (6) |
|
The number of locations available for sale in traditional media is defined as the sum of (1)
the number of light boxes and billboards in Beijing, Shenzhen, Wenzhou and certain other
airports (light boxes and billboards), and (2) the number of gate bridges in certain airports
(gate bridges). |
| |
| (7) |
|
The number of locations sold is defined as the sum of (1) the number of light boxes and
billboards sold and (2) the number of gate bridges sold. To calculate the number of light
boxes and billboards sold in a given airport, the “utilization rates of light boxes and
billboards” in such airport is first calculated by dividing the “total value of light boxes
and billboards sold” in such airport by the “total value of light boxes and billboards” in
such airport. The “total value of light box and billboard sold” in a given airport is
calculated as the daily listing prices of each light boxes and billboards sold multiplied by
their respective number of days sold during the period presented. The “total value of light
boxes and billboards” in a given airport is calculated as the sum of quarterly listing prices
of all the light boxes and billboards during the period presented. The number of light boxes
and billboards sold in a given airport is then calculated as the number of light boxes and
billboards available for sale in such airport multiplied by the utilization rates of light
boxes and billboards in such airport. The number of gate bridges sold in a given airport is
counted based on the contracts. |
| |
| (8) |
|
Utilization rate for traditional media in airports refers to total locations sold as a
percentage of total locations available for sale during the period presented. |
| |
| (9) |
|
Average advertising revenue per location sold is calculated by dividing the revenues derived
from all the locations sold by the number of locations sold during the period presented. |
Earnings Conference Call Details
AirMedia will hold a conference call to discuss the second quarter 2011 earnings at 9:00 PM U.S.
Eastern Time on August 18, 2011 (6:00 PM U.S. Pacific Time on August 18, 2011; 9:00 AM Beijing/Hong
Kong time on August 19, 2011). AirMedia’s management team will be on the call to discuss financial
results and operational highlights and answer questions.
Conference Call Dial-in Information
U.S.: +1 866 713 8395
U.K.: +44 207 365 8426
Hong Kong: +852 3002 1672
International: +1 617 597 5309
Pass code: AMCN
A replay of the call will be available for 1 week between 12:00 a.m. on August 19, 2011 and 11:59
p.m. on August 25, 2011, Eastern Time.
Replay Dial-in Information
U.S.: +1 888 286 8010
International: +1 617 801 6888
Pass code: 83173056
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.
11
Use of Non-GAAP Financial Measures
AirMedia’s management uses non-GAAP financial measures to gain an understanding of AirMedia’s
comparative operating performance and future prospects. AirMedia’s non-GAAP financial measures
exclude the following non-cash items: (1) share-based compensation expenses, (2) amortization of
acquired intangible assets, and (3) impairment of intangible assets.
Non-GAAP financial measures are used by AirMedia’s management in their financial and operating
decision-making, because management believes they reflect AirMedia’s ongoing business and operating
performance in a manner that allows meaningful period-to-period comparisons. AirMedia’s management
believes that these non-GAAP financial measures provide useful information to investors and others
in understanding and evaluating AirMedia’s operating performance in the same manner as management
does, if they so choose. Specifically, AirMedia believes the non-GAAP financial measures provide
useful information to both management and investors by excluding certain charges that the Company
believes are not indicative of its core operating results.
The non-GAAP financial measures have limitations. They do not include all items of income and
expense that affect AirMedia’s income from operations. Specifically, these non-GAAP financial
measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial
measures used by other companies and, with respect to the non-GAAP financial measures that exclude
certain items under GAAP, do not reflect any benefit that such items may confer to AirMedia.
Management compensates for these limitations by also considering AirMedia’s financial results as
determined in accordance with GAAP. The presentation of this additional information is not meant to
be considered superior to, in isolation from or as a substitute for results prepared in accordance
with US GAAP. For more information on these non-GAAP financial measures, please see the table
captioned “Reconciliation of GAAP Net Loss and EPS and Non-GAAP Adjusted Net Loss and EPS”,
“Reconciliation of GAAP Operating Expenses to Non-GAAP Adjusted Operating Expenses” and
“Reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted Loss from Operations” set forth
at the end of this release.
About AirMedia Group Inc.
AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of out-of-home advertising platforms in
China targeting mid-to-high-end consumers. AirMedia operates the largest digital media network in
China dedicated to air travel advertising. AirMedia operates digital frames in 35 major airports
and digital TV screens in 37 major airports, including most of the 30 largest airports in China. In
addition, AirMedia sells advertisements on the routes operated by eight airlines, including the
four largest airlines in China. In selected major airports, AirMedia also operates traditional
media platforms, such as billboards and light boxes, and other digital media, such as mega LED
screens.
In addition, AirMedia has obtained exclusive contractual concession rights until the end of 2014 to
develop and operate outdoor advertising platforms at Sinopec’s service stations located throughout
China.
For more information about AirMedia, please visit http://www.airmedia.net.cn.
12
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as “will,” “expect,” “anticipate,”
“future,” “intend,” “plan,” “believe,” “estimate,” “confident” and similar statements. Among other
things, the Business Outlook section and the quotations from management in this announcement, as
well as AirMedia Group Inc.’s strategic and operational plans, contain forward-looking statements.
AirMedia may also make written or oral forward-looking statements in its reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including statements about AirMedia’s
beliefs and expectations, are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of important factors could cause actual results to
differ materially from those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to: if advertisers or the viewing public do not accept,
or lose interest in, AirMedia’s air travel advertising network, AirMedia may be unable to generate
sufficient cash flow from its operating activities and its prospects and results of operations
could be negatively affected; AirMedia derives most of its revenues from the provision of air
travel advertising services, and any slowdown in the air travel advertising industry in China may
materially and adversely affect its revenues and results of operations; AirMedia’s strategy of
expanding its advertising network by building new air travel media platforms and expanding into
traditional media in airports may not succeed, and its failure to do so could materially reduce the
attractiveness of its network and harm its business, reputation and results of operations; if
AirMedia does not succeed in its expansion into gas station and other outdoors media advertising,
its future results of operations and growth prospects may be materially and adversely affected; if
AirMedia’s customers reduce their advertising spending or are unable to pay AirMedia in full, in
part or at all for a period of time due to an economic downturn in China and/or elsewhere or for
any other reason, AirMedia’s revenues and results of operations may be materially and adversely
affected; AirMedia faces risks related to health epidemics, which could materially and adversely
affect air travel and result in reduced demand for its advertising services or disrupt its
operations; if AirMedia is unable to retain existing concession rights contracts or obtain new
concession rights contracts on commercially advantageous terms that allow it to operate its
advertising platforms, AirMedia may be unable to maintain or expand its network coverage and its
business and prospects may be harmed; a significant portion of AirMedia’s revenues has been derived
from the five largest airports and three largest airlines in China, and if any of these airports or
airlines experiences a material business disruption, AirMedia’s ability to generate revenues and
its results of operations would be materially and adversely affected; AirMedia’s limited operating
history makes it difficult to evaluate its future prospects and results of operations; and other
risks outlined in AirMedia’s filings with the U.S. Securities and Exchange Commission. AirMedia
does not undertake any obligation to update any forward-looking statement, except as required under
applicable law.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
13
AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands)
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|
June 30, |
|
|
December 31, |
|
| |
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
|
114,471 |
|
|
|
106,505 |
|
Restricted cash |
|
|
6,106 |
|
|
|
6,798 |
|
Accounts receivable, net |
|
|
69,407 |
|
|
|
62,455 |
|
Prepaid concession fees |
|
|
21,600 |
|
|
|
31,787 |
|
Amount due from related party |
|
|
144 |
|
|
|
306 |
|
Other current assets |
|
|
4,665 |
|
|
|
2,713 |
|
Deferred tax assets — current |
|
|
4,984 |
|
|
|
5,050 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
221,377 |
|
|
|
215,614 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
63,124 |
|
|
|
71,720 |
|
Long-term investments |
|
|
1,851 |
|
|
|
1,714 |
|
Long-term deposits |
|
|
14,612 |
|
|
|
13,874 |
|
Deferred tax assets — non-current |
|
|
7,444 |
|
|
|
6,032 |
|
Acquired intangible assets, net |
|
|
15,297 |
|
|
|
17,496 |
|
Goodwill |
|
|
21,174 |
|
|
|
20,736 |
|
|
|
|
|
|
|
|
Total assets |
|
|
344,879 |
|
|
|
347,186 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable (Including accounts payable of the
consolidated variable interest entities without recourse to
AirMedia Group Inc. $38,286 and $50,409 as of December 31,
2010 and June 30, 2011, respectively) |
|
|
51,243 |
|
|
|
39,020 |
|
Accrued expenses and other current liabilities
(Including accrued expenses and other current liabilities of
the consolidated variable interest entities without recourse
to AirMedia Group Inc. $7,078 and $4,924 as of December 31,
2010 and June 30, 2011, respectively) |
|
|
9,708 |
|
|
|
12,253 |
|
Deferred revenue (Including deferred revenue of the
consolidated variable interest entities without recourse to
AirMedia Group Inc. $12,751 and $15,806 as of December 31,
2010 and June 30, 2011, respectively) |
|
|
15,807 |
|
|
|
12,751 |
|
Income tax payable (Including income tax payable of the
consolidated variable interest entities without recourse to
AirMedia Group Inc. $911 and nil as of December 31,
2010 and June 30, 2011, respectively) |
|
|
— |
|
|
|
1,263 |
|
Amounts due to related parties (Including amounts due to
related parties of the consolidated variable interest entities
without recourse to AirMedia Group Inc. $422 and $431 as
of December 31, 2010 and June 30, 2011, respectively) |
|
|
431 |
|
|
|
422 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
77,189 |
|
|
|
65,709 |
|
|
|
|
|
|
|
|
Deferred tax
liability — non-current (Including deferred tax liabilities —
non-current of the consolidated variable interest entities without
recourse to AirMedia Group Inc. $4,761 and $4,180 as of December
31, 2010 and June 30, 2011, respectively) |
|
|
4,180 |
|
|
|
4,761 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
81,369 |
|
|
|
70,470 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
129 |
|
|
|
132 |
|
Additional paid-in capital |
|
|
274,234 |
|
|
|
277,676 |
|
Statutory reserves |
|
|
7,671 |
|
|
|
7,671 |
|
Accumulated deficits |
|
|
(40,706 |
) |
|
|
(28,164 |
) |
Accumulated other comprehensive income |
|
|
23,796 |
|
|
|
18,353 |
|
|
|
|
|
|
|
|
Total AirMedia Group Inc.’s shareholders’ equity |
|
|
265,124 |
|
|
|
275,668 |
|
|
|
|
|
|
|
|
Noncontrolling interests |
|
|
(1,614 |
) |
|
|
1,048 |
|
|
|
|
|
|
|
|
Total equity |
|
|
263,510 |
|
|
|
276,716 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
344,879 |
|
|
|
347,186 |
|
|
|
|
|
|
|
|
14
AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars in thousands, except share and ADS related data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| |
|
2011 |
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
58,530 |
|
|
|
61,353 |
|
|
|
56,331 |
|
Business tax and other sales tax |
|
|
(1,516 |
) |
|
|
(1,452 |
) |
|
|
(1,246 |
) |
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
57,014 |
|
|
|
59,901 |
|
|
|
55,085 |
|
Cost of revenues |
|
|
60,788 |
|
|
|
56,195 |
|
|
|
48,612 |
|
|
|
|
|
|
|
|
|
|
|
Gross (loss)/profit |
|
|
(3,774 |
) |
|
|
3,706 |
|
|
|
6,473 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing * |
|
|
4,536 |
|
|
|
4,289 |
|
|
|
4,545 |
|
General and administrative * |
|
|
4,343 |
|
|
|
4,854 |
|
|
|
7,679 |
|
Impairment of intangible assets |
|
|
656 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
9,535 |
|
|
|
9,143 |
|
|
|
12,224 |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(13,309 |
) |
|
|
(5,437 |
) |
|
|
(5,751 |
) |
Interest income |
|
|
386 |
|
|
|
355 |
|
|
|
137 |
|
Other income, net |
|
|
395 |
|
|
|
336 |
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and share of income on equity method
investments |
|
|
(12,528 |
) |
|
|
(4,746 |
) |
|
|
(5,530 |
) |
Income tax benefits (expenses) |
|
|
2,497 |
|
|
|
(522 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before share of income on equity method investments |
|
|
(10,031 |
) |
|
|
(5,268 |
) |
|
|
(5,549 |
) |
Share of income on equity method investments |
|
|
40 |
|
|
|
58 |
|
|
|
48 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(9,991 |
) |
|
|
(5,210 |
) |
|
|
(5,501 |
) |
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to noncontrolling interests |
|
|
(1,351 |
) |
|
|
(1,308 |
) |
|
|
(767 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to AirMedia Group Inc.’s shareholders |
|
|
(8,640 |
) |
|
|
(3,902 |
) |
|
|
(4,734 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to AirMedia Group Inc.’s shareholders per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.07 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Diluted |
|
|
(0.07 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Net loss attributable to AirMedia Group Inc.’s shareholders per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.13 |
) |
|
|
(0.06 |
) |
|
|
(0.07 |
) |
Diluted |
|
|
(0.13 |
) |
|
|
(0.06 |
) |
|
|
(0.07 |
) |
Weighted average ordinary shares outstanding used in computing
net loss per ordinary share — basic |
|
|
130,815,205 |
|
|
|
131,876,085 |
|
|
|
131,169,981 |
|
Weighted average ordinary shares outstanding used in computing
net loss per ordinary share — diluted |
|
|
130,815,205 |
|
|
|
131,876,085 |
|
|
|
131,169,981 |
|
* Share-based compensation charges included are as follow: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
284 |
|
|
|
281 |
|
|
|
927 |
|
General and administrative |
|
|
654 |
|
|
|
428 |
|
|
|
2,450 |
|
15
AirMedia Group Inc.
RECONCILIATION OF GAAP NET LOSS AND EPS TO NON-GAAP ADJUSTED NET LOSS AND EPS
(In U.S. dollars in thousands, except share and ADS related data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| |
|
2011 |
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to AirMedia Group Inc.’s shareholders (GAAP) |
|
|
(8,640 |
) |
|
|
(3,902 |
) |
|
|
(4,734 |
) |
Amortization of acquired intangible assets |
|
|
953 |
|
|
|
939 |
|
|
|
933 |
|
Share-based compensation |
|
|
938 |
|
|
|
709 |
|
|
|
3,377 |
|
Impairment of intangible assets |
|
|
656 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to AirMedia Group Inc.’s
shareholders (Non-GAAP) |
|
|
(6,093 |
) |
|
|
(2,254 |
) |
|
|
(424 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to AirMedia Group Inc.’s
shareholders per share (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
0.00 |
|
Diluted |
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to AirMedia Group Inc.’s
shareholders per ADS (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.09 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Diluted |
|
|
(0.09 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing adjusted basic net loss attributable to
AirMedia Group Inc.’s shareholders per share (Non-GAAP) |
|
|
130,815,205 |
|
|
|
131,876,085 |
|
|
|
131,169,981 |
|
Shares used in computing adjusted diluted net loss attributable
to AirMedia Group Inc.’s shareholders per share (Non-GAAP) |
|
|
130,815,205 |
|
|
|
131,876,085 |
|
|
|
131,169,981 |
|
| |
|
|
| Note: |
|
The Non-GAAP adjusted net loss per share and per ADS are computed using Non-GAAP net
adjusted loss and number of shares and ADSs used in GAAP basic and diluted EPS calculation, where
the number of shares and ADSs is adjusted for dilution due to the share-based compensation plan. |
16
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 |
|
| |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| |
|
2011 |
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (GAAP) |
|
|
9,535 |
|
|
|
9,143 |
|
|
|
12,224 |
|
Amortization of acquired intangible assets |
|
|
953 |
|
|
|
939 |
|
|
|
933 |
|
Share-based compensation |
|
|
938 |
|
|
|
709 |
|
|
|
3,377 |
|
Impairment of intangible assets |
|
|
656 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (Non-GAAP) |
|
|
6,988 |
|
|
|
7,495 |
|
|
|
7,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses as a
percentage of net revenues (Non-GAAP) |
|
|
12.3 |
% |
|
|
12.5 |
% |
|
|
14.4 |
% |
AirMedia Group Inc.
RECONCILIATION OF GAAP LOSS FROM OPERATIONS TO NON-GAAP ADJUSTED LOSS FROM OPERATIONS
(In U.S. dollars in thousands except for percentages)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| |
|
2011 |
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(13,309 |
) |
|
|
(5,437 |
) |
|
|
(5,751 |
) |
Amortization of acquired intangible assets |
|
|
953 |
|
|
|
939 |
|
|
|
933 |
|
Share-based compensation |
|
|
938 |
|
|
|
709 |
|
|
|
3,377 |
|
Impairment of intangible assets |
|
|
656 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted loss from operations (Non-GAAP) |
|
|
(10,762 |
) |
|
|
(3,789 |
) |
|
|
(1,441 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating margin (Non-GAAP) |
|
|
-18.9 |
% |
|
|
-6.3 |
% |
|
|
-2.6 |
% |
17