BEIJING, Nov. 19, 2012 /PRNewswire/ -- AirMedia Group Inc.
("AirMedia" or the "Company") (Nasdaq: AMCN), a leading operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers,
today announced its unaudited financial results for the third
quarter ended September 30, 2012.
Third Quarter 2012 Financial Highlights
- Total revenues increased by 4.3% year-over-year to US$73.1 million.
- Net loss attributable to AirMedia's shareholders was
US$27.3 million. Basic and diluted
net loss attributable to AirMedia's shareholders per American
Depositary Share ("ADS") were both US$0.44.
- Adjusted net income 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, impairment of goodwill,
and impairment of intangible assets, was US$4.3 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$0.07. 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$0.07.
"Despite the negative impact on advertising from certain recent
anti-Japan protests in
China, we were still able to beat
the high end of our revenue guidance in the third quarter of 2012.
Our results for the third quarter of 2012 primarily benefitted from
the continued growth of our digital frames in airports. We are
excited to see the rapid growth of our mega-size LED screens, which
received very strong demand from advertisers. We expect mega-size
LED screens to be a larger part of the Company's future revenues
and become one of our growth drivers in the coming quarters,"
commented Herman Guo, chairman and
chief executive officer of AirMedia.
"In the third quarter of 2012, we made improvements on gross
profit as a percentage of net revenues and non-GAAP adjusted net
income. Gross profit as a percentage of net revenues for the third
quarter was 12.3%, up from 10.2% in the same period one year ago
and 10.1% in the previous quarter. Non-GAAP adjusted net income
expanded to US$4.3 million. If not
for the impairment of goodwill and impairment of intangible assets
of total US$30.2 million, we would
have been able to achieve US-GAAP net income in the third quarter.
These impairment charges are non-cash charges, which we do not
expect to be recurring," Henry Ho,
AirMedia's chief financial officer, commented.
Third Quarter 2012 Financial
Results
Revenues
Total revenues by product line (numbers in US$ 000's except for percentages):
|
|
Quarter
Ended
September
30, 2012
|
% of Total
Revenues
|
|
Quarter
Ended
June 30, 2012
|
% of Total
Revenues
|
|
Quarter
Ended
September
30, 2011
|
% of Total
Revenues
|
|
Y/Y
Growth
rate
|
|
Q/Q
Growth
rate
|
Air Travel Media
Network
|
|
66,233
|
90.6%
|
|
63,046
|
92.5%
|
|
64,085
|
91.4%
|
|
3.4%
|
|
5.1%
|
Digital frames in
airports
|
|
34,993
|
47.9%
|
|
29,652
|
43.5%
|
|
30,696
|
43.8%
|
|
14.0%
|
|
18.0%
|
Digital TV
screens in airports
|
|
2,740
|
3.7%
|
|
3,414
|
5.0%
|
|
3,447
|
4.9%
|
|
-20.5%
|
|
-19.7%
|
Digital TV
screens on airplanes
|
|
6,578
|
9.0%
|
|
7,143
|
10.5%
|
|
6,794
|
9.7%
|
|
-3.2%
|
|
-7.9%
|
Traditional media
in airports
|
|
20,113
|
27.5%
|
|
20,764
|
30.5%
|
|
21,344
|
30.4%
|
|
-5.8%
|
|
-3.1%
|
Other revenues in
air travel
|
|
1,809
|
2.5%
|
|
2,073
|
3.0%
|
|
1,804
|
2.6%
|
|
0.3%
|
|
-12.7%
|
Gas Station Media
Network
|
|
3,889
|
5.3%
|
|
2,278
|
3.4%
|
|
3,753
|
5.4%
|
|
3.6%
|
|
70.7%
|
Other
Media
|
|
2,984
|
4.1%
|
|
2,809
|
4.1%
|
|
2,270
|
3.2%
|
|
31.5%
|
|
6.2%
|
Total
revenues
|
|
73,106
|
100.0%
|
|
68,133
|
100.0%
|
|
70,108
|
100.0%
|
|
4.3%
|
|
7.3%
|
Net revenues
|
|
71,368
|
|
|
66,583
|
|
|
68,715
|
|
|
3.9%
|
|
7.2%
|
Total revenues for the third quarter of 2012 reached
US$73.1 million, representing a
year-over-year increase of 4.3% from US$70.1
million and a quarter-over-quarter increase of 7.3% from
US$68.1 million. The year-over-year
and quarter-over-quarter increases were primarily due to increases
in revenues from digital frames in airports, other media, and the
gas station media network, partially offset by decreases in
revenues from digital TV screens in airports, digital TV screens on
airplanes and traditional media in airports.
Revenues from digital frames in airports
Revenues from digital frames in airports for the third quarter
of 2012 increased by 14.0% year-over-year and by 18.0%
quarter-over-quarter to US$35.0
million. The year-over-year and quarter-over-quarter
increases were due to the Company's continued sales efforts and
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 the third
quarter of 2012 decreased by 20.5% year-over-year and by 19.7%
quarter-over-quarter to US$2.7
million. The year-over-year and quarter-over-quarter
decreases were primarily due to a drop in demand from
advertisers.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the third
quarter of 2012 decreased by 3.2% year-over-year and by 7.9%
quarter-over-quarter to US$6.6
million, primarily due to the fact that when advertisers
have limited advertising budgets during the current economic
environment, they tend to move budgets to media which they think
can generate higher returns.
Revenues from traditional media in
airports
Revenues from traditional media in airports for the third
quarter of 2012 decreased by 5.8% year-over-year and 3.1%
quarter-over-quarter to US$20.1
million. The year-over-year and quarter-over-quarter
decreases were primarily due to the reduced availability as a
result of a media format upgrade, in which AirMedia was
upgrading 18 light boxes at prime locations in Beijing Capital
International Airport to a better advertising format. The Company
finished upgrading two of these light boxes in September 2012, and expects to complete upgrading
the rest by the end of the year.
Revenues from the gas station media
network
Revenues from the gas station media network for the third
quarter of 2012 increased by 3.6% year-over-year and by 70.7%
quarter-over-quarter to US$3.9
million. The year-over-year increase was primarily due to
the Company's continued sales efforts and advertisers' continually
growing acceptance of AirMedia's gas station media network. The
quarter-over-quarter increase was primarily due to breakthrough on
certain key advertising accounts.
Revenues from other media
Revenues from other media were primarily revenues from unipole
signs and other outdoors media. Revenues from other media for the
third quarter of 2012 increased by 31.5% year-over-year and
increased by 6.2% quarter-over-quarter to US$3.0 million. The year-over-year and
quarter-over-quarter increases were primarily due to an increase in
real estate advertising in the third quarter of 2012.
Business tax and other sales tax
Business tax and other sales tax for the third quarter of 2012
were US$1.7 million, compared to
US$1.4 million in the same period one
year ago and US$1.6 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 third quarter of 2012 reached US$71.4 million, representing a year-over-year
increase of 3.9% from US$68.7 million
and a quarter-over-quarter increase of 7.2% from US$66.6
million.
Cost of Revenues
Cost of revenues for the third quarter of 2012 was US$62.6 million, representing a year-over-year
increase of 1.3% from US$61.7 million
and a quarter-over-quarter increase of 4.6% from US$59.8 million. The year-over-year increase was
primarily due to higher concession fees, which were partially
offset by lower agency fees for third-party advertising agencies.
The quarter-over-quarter increase was primarily due to higher
agency fees for third-party advertising agencies, which were
partially offset by lower concession fees. Cost of revenues as a
percentage of net revenues in the third quarter of 2012 was 87.7%,
down from 89.8% in the same period one year ago and down from 89.9%
in the previous quarter.
AirMedia incurs concession fees to airports for placing and
operating digital frames, digital TV screens, traditional media and
other displays in airports, to airlines for playing programs on
their digital TV screens, to Sinopec for placing outdoors media in
its gas stations and to other media resources owners for placing
unipole signs and other outdoors media.
Concession fees for the third quarter of 2012 increased by 7.2%
year-over-year and decreased by 0.9% quarter-over-quarter to
US$44.5 million. The year-over-year
increase was primarily due to newly signed or renewed concession
rights contracts during the period. Concession fees as a percentage
of net revenues in the third quarter of 2012 was 62.4%, increasing
from 60.4% in the same period one year ago and decreasing from
67.5% in the previous quarter. The year-over-year increase of
concession fees as a percentage of net revenues was primarily due
to the fact concession fees grew at a faster pace than net
revenues. The quarter-over-quarter decrease of concession fees as a
percentage of net revenues was primarily due to the fact that net
revenues grew at a faster pace than concession fees.
Gross Profit
Gross profit for the third quarter of 2012 was US$8.8 million, compared to gross profit of
US$7.0 million in the same period one
year ago and gross profit of US$6.8
million in the previous quarter.
Gross profit as a percentage of net revenues for the third
quarter of 2012 was 12.3%, compared to gross profit as a percentage
of net revenues of 10.2% in the same period one year ago and gross
profit as a percentage of net revenues of 10.1% in the previous
quarter. The year-over-year and quarter-over-quarter increases in
gross profit as a percentage of net revenues were due to the fact
that net revenues grew at a faster pace than cost of revenues.
Operating Expenses
Operating expenses (numbers in US$
000's except for percentages):
|
Quarter
Ended
September
30, 2012
|
% of Net
Revenues
|
|
Quarter
Ended
June 30, 2012
|
% of Net
Revenues
|
|
Quarter
Ended
September
30, 2011
|
% of Net
Revenues
|
|
Y/Y
Growth
rate
|
Q/Q
Growth
rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
4,461
|
6.3%
|
|
4,162
|
6.3%
|
|
4,429
|
6.4%
|
|
0.7%
|
7.2%
|
General and
administrative expenses
|
5,228
|
7.3%
|
|
5,056
|
7.6%
|
|
5,562
|
8.1%
|
|
-6.0%
|
3.4%
|
Impairment of
goodwill
|
20,611
|
28.9%
|
|
-
|
0.0%
|
|
-
|
0.0%
|
|
N/A
|
N/A
|
Impairment of intangible
assets
|
9,583
|
13.4%
|
|
-
|
0.0%
|
|
-
|
0.0%
|
|
N/A
|
N/A
|
Total operating
expenses
|
39,883
|
55.9%
|
|
9,218
|
13.9%
|
|
9,991
|
14.5%
|
|
299.2%
|
332.7%
|
Adjusted operating
expenses
(non-GAAP)
|
8,256
|
11.6%
|
|
7,409
|
11.1%
|
|
6,659
|
9.7%
|
|
24.0%
|
11.4%
|
Total operating expenses for the third quarter of 2012 were
US$39.9 million, representing a
year-over-year increase of 299.2% from US$10.0 million and a quarter-over-quarter
increase of 332.7% from US$9.2
million. The year-over-year and quarter-over-quarter
increases were primarily due to impairment of goodwill of
US$20.6 million and an impairment of
intangible asset of US$9.6 million in
the third quarter of 2012.
Share-based compensation expenses included in the total
operating expenses for the third quarter of 2012 were US$713,000, compared to share-based compensation
expenses of US$2.4 million in the
same period one year ago and share-based compensation expenses of
US$993,000 in the previous quarter.
The year-over-year decrease in share-based compensation expenses
was primarily due to a re-pricing of stock options on August 23, 2011, which resulted in additional
one-time share-based compensation expenses in the third quarter of
2011, and the fact that stock options granted on July 10, 2009 all became fully vested on
July 10, 2012. The
quarter-over-quarter decrease in share-based compensation expenses
was primarily due to the fact that stock options granted on
July 10, 2009 all became fully vested
on July 10, 2012.
Adjusted operating expenses (non-GAAP), which excluded
share-based compensation expenses, amortization of acquired
intangible assets, impairment of goodwill, and impairment of
intangible assets, were US$8.3
million for the third quarter of 2012, representing a
year-over-year increase of 24.0% from US$6.7
million and a quarter-over-quarter increase of 11.4% from
US$7.4 million. 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 11.6% in the third quarter of 2012, compared to
9.7% in the same period one year ago and 11.1% in the previous
quarter.
Please refer to the attached table captioned "Reconciliation of
GAAP Operating Expenses to Non-GAAP Adjusted Operating Expenses"
for a reconciliation of operating expenses under U.S. GAAP to
adjusted operating expenses (non-GAAP).
Selling and marketing expenses for the third quarter of 2012
were US$4.5 million, including
share-based compensation expenses of US$174,000. This represented a year-over-year
increase of 0.7% from US$4.4 million
and a quarter-over-quarter increase of 7.2% from US$4.2 million. The quarter-over-quarter increase
was primarily due to higher sales commissions for direct sales
force.
General and administrative expenses for the third quarter of
2012 were US$5.2 million, including
share-based compensation expenses of US$539,000. This represented a year-over-year
decrease of 6.0% from US$5.6 million
and a quarter-over-quarter increase of 3.4% from US$5.1million. The year-over-year decrease was
primarily due to lower share-based compensation expenses and lower
amortization of acquired intangible assets, which were partially
offset by higher bad-debt provision.
As the Company's stock price continued to underperform and
because of the negative economic sentiment in China and its effect on marketing and
advertising budgets, the Company's management thought it was
prudent to perform an assessment regarding the recoverability of
its goodwill and intangible assets balances as of September 30, 2012. As a result of
management's analyses, it was determined that the carrying amount
of goodwill and certain intangible assets, all initially recognized
in connection with certain business acquisitions in previous years,
were impaired. The Company recorded an impairment expense of
US$20.6 million for the full
impairment of goodwill and US$9.6
million of the partial impairment of certain intangible
assets. All such impairment of goodwill and intangible assets are
non-cash charges.
Income/Loss from Operations
Loss from operations for the third quarter of 2012 was
US$31.1 million, compared to loss
from operations of US$3.0 million in
the same period one year ago and loss from operations of
US$2.5 million in the previous
quarter. Loss from operations as a percentage of net revenues for
the third quarter of 2012 was negative 43.5%, compared to negative
4.4% in the same period one year ago and negative 3.7% in the
previous quarter.
Adjusted income from operations (non-GAAP), which excluded
share-based compensation expenses, amortization of acquired
intangible assets, impairment of goodwill and impairment of
intangible assets, was US$557,000 for
the third quarter of 2012, compared to adjusted income from
operations (non-GAAP) of US$333,000
in the same period one year ago and adjusted loss from operations
(non-GAAP) of US$657,000 in the
previous quarter. Adjusted operating margin (non-GAAP), which
excluded the effect of share-based compensation expenses,
amortization of acquired intangible assets, impairment of goodwill,
and impairment of intangible assets, was 0.8% for the third quarter
of 2012, compared to 0.5% in the same period one year ago and
negative 1.0% 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 third quarter of 2012 were
US$3.0 million, compared to income
tax benefits of US$205,000 in the
same period one year ago and income tax benefits of US$664,000 in the previous quarter.
Net Loss/Income Attributable
to AirMedia's Shareholders
Net loss attributable to AirMedia's shareholders for the third
quarter of 2012 was US$27.3 million,
compared to net loss attributable to AirMedia's shareholders of
US$1.7 million in the same period one
year ago and net loss attributable to AirMedia's shareholders of
US$1.5 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders
per ADS for the third quarter of 2012 was US$0.44, compared to basic net loss attributable
to AirMedia's shareholders per ADS of US$0.03 in the same period one year ago and basic
net loss attributable to AirMedia's shareholders per ADS of
US$0.02 in the previous quarter. The
diluted net loss attributable to AirMedia's shareholders per ADS
for the third quarter of 2012 was US$0.44, compared to diluted net loss
attributable to AirMedia's shareholders per ADS of US$0.03 in the same period one year ago and
diluted net loss attributable to AirMedia's shareholders per ADS of
US$0.02 in the previous quarter.
Adjusted net income 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, impairment of goodwill,
and impairment of intangible assets, was US$4.3 million for the third quarter of 2012,
compared to adjusted net income attributable to AirMedia's
shareholders (non-GAAP) of US$1.6
million in the same period one year ago and adjusted net
income attributable to AirMedia's shareholders (non-GAAP) of
US$339,000 in the previous quarter.
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$0.07 for the
third quarter of 2012, compared to adjusted basic net income
attributable to AirMedia's shareholders per ADS (non-GAAP) of
US$0.03 in the same period one year
ago and adjusted basic net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.01 in the previous quarter. 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 as adjusted
for dilution after taking into account option grants under the
Share Incentive Plan, was US$0.07 for
the third quarter of 2012, compared to adjusted diluted net income
attributable to AirMedia's shareholders per ADS (non-GAAP) of
US$0.03 in the same period one year
ago and adjusted diluted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.01 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).
Cash, Restricted Cash and
Short-term Investments
Cash, restricted cash and short-term investments totaled
US$124.2 million as of September 30, 2012, compared to US$119.1 million as of December 31, 2011. The increase in cash,
restricted cash and short-term investments from December 31, 2011 was primarily due to positive
cash flow from operations.
ADS Repurchases and Expansion of Share Repurchase
Program
On March 21, 2011, AirMedia's
board of directors authorized AirMedia to repurchase up to
US$20 million of its own outstanding
ADSs within two years from March 21,
2011. On September 24, 2012,
AirMedia's board of directors approved to increase the size of the
share repurchase program to US$40
million from US$20 million and
to extend the termination date of the share repurchase program to
March 20, 2014 from March 20, 2013. As of November 18, 2012, AirMedia had repurchased an
aggregate of 4,744,910 ADSs on the open market for a
total consideration of US$13.9
million.
Other Recent Developments
AirMedia's board of directors (the "Board") approved a share
capital increase of Beijing Weimei Shengjing Advertising Co., Ltd.
("Weimei Shengjing") and a share purchase by certain members of the
senior management of Weimei Shengjing. Weimei Shengjing, a wholly
owned subsidiary of Beijing AirMedia UC Advertising Co., Ltd.
("AirMedia UC"), one of the VIEs of the Company, is currently the
primary operating entity of AirMedia's gas station media network.
As part of the share capital increase, Weimei Shengjing will
increase its share capital by issuing new registered capital to
AirMedia UC for a total cash consideration of RMB38.0 million and to Beijing Zhongshi Aoyou
Advertising Co., Ltd. (Zhongshi Aoyou) for a total cash
consideration of RMB15.0 million (the
"Share Capital Increase"). After the proposed Share Capital
Increase, AirMedia UC and Zhongshi Aoyou will hold 78% and 22%
equity interest in Weimei Shengjing, respectively. Certain members
of the senior management of Weimei Shengjing intend to purchase
shares of Weimei Shengjing or shares of Zhongshi Aoyou within 30
business days after the proposed Share Capital Increase, for cash
consideration per share equal to the fair values of the shares
purchased as set out in the valuation report of Weiming Shengjing
(the "Share Purchase"). After the proposed Share Purchase, these
purchasers will directly or indirectly hold 22% of the equity
interest in Weimei Shengjing. The Audit Committee of the Board
deliberated on the proposed Share Capital Increase and the Share
Purchase and recommended them to the Board for approval. The Share
Capital Increase and the Share Purchase were approved by the Board
on November 16, 2012.
On November 12, 2012, AirMedia
obtained concession rights contract to install and operate two
mega-size LED screens above the security check areas in Sanya
Fenghuang International Airport in Hainan province from December 1, 2012 to February 28, 2017.
Starting from November 1, 2012,
AirMedia extended the advertising cycle time of its mega-size LED
screens in Changsha Huanghua International Airport to 12-minute
cycles from 6-minute cycles, which reduced the frequency of the
15-second advertising time slots to 80 times a day from 160 times a
day, while maintaining the same listing price per time slot. This
approach, a response to strong demand from advertisers, doubled the
capacity to sell the Company's mega-size LED Screens in Changsha
Huanghua International Airport to 48 time slots from 24 time slots
available for sale per week.
Starting from October 23, 2012,
after approximately 40-day operation, AirMedia completed the upward
adjustment of the listing price of its mega-size LED screens at
Terminals 2 of Chengdu Shuangliu International Airport by
approximately 75%; the price adjustment was due to strong
demand from advertisers.
On September 27, 2012, AirMedia
obtained concession rights contract to install and operate two
mega-size LED screens next to the airport highway of Chengdu
Shuangliu International Airport for eight years starting from the
commencement of operations, which is expected to be before
December 1, 2012.
On September 13, 2012, AirMedia
commenced operations of its mega-size LED screens above the
security check areas at Terminal 2 of Chengdu Shuangliu
International Airport.
On September 5, 2012, AirMedia
obtained rights to be a selling agent of the three mega-size LED
screens above the security check areas of Hangzhou Xiaoshan
International Airport in Zhejiang
province from October 1, 2012 to
February 28, 2015.
On September 3, 2012, AirMedia
commenced operations of eight sets of newly-built stand-alone
digital frames at the baggage claim areas of Changchun Longjia
International Airport in Jilin
province.
On September 1, 2012, AirMedia's
Board of Directors granted options to an employee to purchase an
aggregate of 1,857,538 ordinary shares (928,769 ADSs) of the
Company, at an exercise price of US$0.72 per ordinary share (US$1.43 per ADS). The term of these options is
five years; one twelfth of these options will vest at the beginning
of each quarter from September 4,
2012 to June 3, 2015.
On August 21, 2012, AirMedia
commenced operations of 37 sets of newly-built stand-alone digital
frames in Sanya Fenghuang International Airport ("Sanya Airport")
in Hainan province, which
significantly increased AirMedia's media presence in Sanya Airport.
In addition to the original 15 sets of stand-alone digital frames
it already operates in Sanya Airport, AirMedia currently has 52
sets of stand-alone digital frames in Sanya Airport.
On July 15, 2012, AirMedia
obtained concession rights contract to operate a mega-size LED
screen above the security check areas in Changchun Longjia
International Airport in Jilin
province from July 15, 2012 to
December 31, 2014.
AirMedia's PRC subsidiaries and variable interest entities have
engaged in and may be subject to various legal proceedings relating
to commercial arrangements and other matters in the ordinary course
of its business. In August 2012, the
Company received arbitral awards from Beijing Arbitration
Commission concerning some of these legal proceedings, which
resulted in an additional payable of US$1.1
million in the third quarter.
Business Outlook
Due to China's replacement of
Business Tax by the recently implemented Value Added Tax in
AirMedia's key regions of operations, the difference between
AirMedia's total revenues and net revenues will be minimal in the
future. As a result, starting from the fourth quarter of 2012,
AirMedia will give guidance of its net revenues instead of total
revenues. AirMedia currently expects its net revenues for the
fourth quarter of 2012 to range from US$77.0
million to US$80.0 million, representing a year-over-year
decrease of 5.9% to 9.4% from the same period in 2011 and a
quarter-over-quarter increase of 7.9% to 12.1% from the previous
quarter.
AirMedia currently expects its concession fees to be
approximately US$46.0 million in the
fourth quarter of 2012. The quarter-over-quarter increase from the
third quarter of 2012 will be primarily due to the concession fee
commitments under concession rights contracts that were newly
signed or renewed or are expected to be signed or renewed.
The above forecast reflects AirMedia's current and preliminary
view and is therefore subject to change. Please refer to the Safe
Harbor Statement below for the factors that could cause actual
results to differ materially from those contained in any
forward-looking statement.
Summary of Selected Operating Data
|
Quarter
Ended
September
30, 2012
|
|
Quarter
Ended
June
30, 2012
|
|
Quarter
Ended
September
30, 2011
|
|
Y/Y
Growth
Rate
|
|
Q/Q
Growth
Rate
|
Digital frames in
airports
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
34
|
|
33
|
|
35
|
|
-2.9%
|
|
3.0%
|
Number of time
slots available for sale (2)
|
32,033
|
|
33,012
|
|
35,292
|
|
-9.2%
|
|
-3.0%
|
Number of time
slots sold (3)
|
12,819
|
|
9,535
|
|
11,461
|
|
11.8%
|
|
34.4%
|
Utilization rate
(4)
|
40.0%
|
|
28.9%
|
|
32.5%
|
|
7.5%
|
|
11.1%
|
Average
advertising revenue per time slot sold(5)
|
US$2,730
|
|
US$3,110
|
|
US$2,678
|
|
1.9%
|
|
-12.2%
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in
airports
|
|
|
|
|
|
|
|
|
|
Number of
airports in operation
|
34
|
|
35
|
|
37
|
|
-8.1%
|
|
-2.9%
|
Number of time
slots available for sale (1)
|
16,560
|
|
16,789
|
|
18,664
|
|
-11.3%
|
|
-1.4%
|
Number of time
slots sold (3)
|
6,460
|
|
6,174
|
|
2,313
|
|
179.3%
|
|
4.6%
|
Utilization rate
(4)
|
39.0%
|
|
36.8%
|
|
12.4%
|
|
26.6%
|
|
2.2%
|
Average
advertising revenue per time slot sold (5)
|
US$424
|
|
US$553
|
|
US$1,490
|
|
-71.5%
|
|
-23.3%
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on
airplanes
|
|
|
|
|
|
|
|
|
|
Number of
airlines in operation
|
9
|
|
9
|
|
8
|
|
12.5%
|
|
0.0%
|
Number of time
slots available for sale (1)
|
444
|
|
444
|
|
414
|
|
7.2%
|
|
0.0%
|
Number of time
slots sold (3)
|
168
|
|
204
|
|
254
|
|
-33.9%
|
|
-17.6%
|
Utilization rate
(4)
|
37.8%
|
|
45.9%
|
|
61.4%
|
|
-23.6%
|
|
-8.1%
|
Average
advertising revenue per time slot sold (5)
|
US$39,155
|
|
US$35,015
|
|
US$26,748
|
|
46.4%
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in
airports
|
|
|
|
|
|
|
|
|
|
Numbers of locations
available for sale (6)
|
928
|
|
930
|
|
904
|
|
2.7%
|
|
-0.2%
|
Numbers of locations
sold (7)
|
621
|
|
587
|
|
695
|
|
-10.6%
|
|
5.8%
|
Utilization rate
(8)
|
66.9%
|
|
63.1%
|
|
76.9%
|
|
-10.0%
|
|
3.8%
|
Average advertising
revenue per location sold (9)
|
US$32,388
|
|
US$35,373
|
|
US$30,711
|
|
5.5%
|
|
-8.4%
|
Notes:
(1) A time slot is defined as a 30-second equivalent advertising
time unit for digital TV screens in airports and digital TV screens
on airplanes, which is shown during each advertising cycle on a
weekly basis in a given airport or on a monthly basis on the routes
of a given airline, respectively. AirMedia's airport advertising
programs are shown repeatedly on a daily basis during a given week
in one-hour cycles and each hour of programming includes 20 minutes
of advertising content, which allows the Company to sell a maximum
of 40 time slots per week. The number of time slots available for
sale for the digital TV screens in airports during the period
presented is calculated by multiplying the time slots available for
sale per week per airport by the number of weeks during the period
presented when AirMedia had operations in each airport and then
calculating the sum of all the time slots available for sale for
each of the Company's network airports. The length of AirMedia's
in-flight programs typically ranges from approximately 45 minutes
to an hour per flight, approximately five to 13 minutes of which
consist of advertising content. The number of time slots available
for sale for our digital TV screens on airplanes during the period
presented is calculated by multiplying the time slots per airline
per month by the number of months during the period presented when
AirMedia had operations on each airline and then calculating the
sum of all the time slots available for sale for each of its
network airlines.
(2) A time slot is defined as a 12-second equivalent advertising
time or 6-second equivalent advertising time units for digital
frames in airports, which is shown during each standard advertising
cycle on a weekly basis in a given airport. AirMedia's standard
airport advertising programs are shown repeatedly on a daily basis
during a given week in 10-minute cycles or 5-minute cycles, which
allows the Company to sell a maximum of 50 time slots per week. The
length of time slot and advertising program cycle of some digital
frames in several airports are different from the standard ones.
The number of time slots available for sale for the digital frames
in airports during the period presented is calculated by
multiplying the time slots per week per airport by the number of
weeks during the period presented when the Company had operations
in each airport and then calculating the sum of all the time slots
available for each of its network airports.
(3) Number of time slots sold refers to the number of 30-second
equivalent advertising time units for digital TV screens in
airports and digital TV screens on airplanes or 12-second
equivalent advertising time units or 6-second equivalent
advertising time units for digital frames in airports sold during
the period presented.
(4) Utilization rate for digital TV screens in airports, digital
TV screens on airplanes and digital frames in airports refers to
total time slots sold as a percentage of total time slots available
for sale during the relevant period.
(5) Average advertising revenue per time slot sold for digital
TV screens in airports, digital TV screens on airplanes and digital
frames in airports are calculated by dividing each of the Company's
revenues derived from digital TV screens in airports, digital TV
screens on airplanes and digital frames in airports by the
respective number of time slots sold.
(6) The number of locations available for sale in traditional
media is defined as the sum of (1) the number of light boxes and
billboards in Beijing,
Shenzhen, Wenzhou and certain
other airports (light boxes and billboards), and (2) the number of
gate bridges in certain airports (gate bridges).
(7) The number of locations sold is defined as the sum of (1)
the number of light boxes and billboards sold and (2) the number of
gate bridges sold. To calculate the number of light boxes and
billboards sold in a given airport, the "utilization rates of
light boxes and billboards" in such airport is first calculated by
dividing the "total value of light boxes and billboards sold" in
such airport by the "total value of light boxes and billboards" in
such airport. The "total value of light box and billboard
sold" in a given airport is calculated as the daily listing prices
of each light boxes and billboards sold in such airport multiplied
by their respective number of days sold during the period
presented. The "total value of light boxes and billboards" in
a given airport is calculated as the sum of quarterly listing
prices of all the light boxes and billboards in such airport during
the period presented. The number of light boxes and billboards sold
in a given airport is then calculated as the number of light boxes
and billboards available for sale in such airport multiplied by the
utilization rates of light boxes and billboards in such airport.
The number of gate bridges sold in a given airport is counted based
on numbers in the relevant contracts.
(8) Utilization rate for traditional media in airports
refers to total locations sold as a percentage of total locations
available for sale during the period presented.
(9) Average advertising revenue per location sold is
calculated by dividing the revenues derived from all the locations
sold by the number of locations sold during the period
presented.
Earnings Conference Call Details
AirMedia will hold a conference call to discuss the third
quarter 2012 earnings at 8:00 PM U.S.
Eastern Time on November 19, 2012
(5:00 PM U.S. Pacific Time on
November 19, 2012; 9:00 AM Beijing/Hong
Kong time on November 20,
2012). AirMedia's management team will be on the call to
discuss financial results and operational highlights and answer
questions.
Conference Call Dial-in Information
U.S.: +1 866 519 4004
U.K.: 08082346646
Hong Kong: +852 2475 0994
International: +1 718 354 1231
Pass code: AMCN
A replay of the call will be available for 1 week between
11:00 p.m. on November 19, 2012 and 11:59 p.m. on November 26,
2012, Eastern Time.
Replay Dial-in Information
U.S.: +1 855 452 5696
International: +1 646 254 3697
Pass code: 64803942
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 34 major airports and digital
TV screens in 34 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by nine
airlines, including the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega LED screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2014 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "confident" and similar statements. Among
other things, the Business Outlook section and the quotations from
management in this announcement, as well as AirMedia Group Inc.'s
strategic and operational plans, contain forward-looking
statements. AirMedia may also make written or oral forward-looking
statements in its reports to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about AirMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to: if advertisers or the viewing
public do not accept, or lose interest in, AirMedia's air travel
advertising network, AirMedia may be unable to generate sufficient
cash flow from its operating activities and its prospects and
results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel
advertising services, and any slowdown in the air travel
advertising industry in China may
materially and adversely affect its revenues and results of
operations; AirMedia's strategy of expanding its advertising
network by building new air travel media platforms and expanding
into traditional media in airports may not succeed, and its failure
to do so could materially reduce the attractiveness of its network
and harm its business, reputation and results of operations; if
AirMedia does not succeed in its expansion into gas station and
other outdoors media advertising, its future results of operations
and growth prospects may be materially and adversely affected; if
AirMedia's customers reduce their advertising spending or are
unable to pay AirMedia in full, in part or at all for a period of
time due to an economic downturn in China and/or elsewhere or for any other
reason, AirMedia's revenues and results of operations may be
materially and adversely affected; AirMedia faces risks related to
health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or
disrupt its operations; if AirMedia is unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow it
to operate its advertising platforms, AirMedia may be unable to
maintain or expand its network coverage and its business and
prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four
largest airlines in China, and if
any of these airports or airlines experiences a material business
disruption, AirMedia's ability to generate revenues and its results
of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
its future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
AirMedia Group
Inc.
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
September 30,
2012
|
December 31,
2011
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
108,112
|
112,734
|
|
Restricted cash
|
|
8,141
|
6,363
|
|
Short-term
investment
|
|
7,956
|
-
|
|
Accounts receivable,
net
|
|
87,505
|
92,823
|
|
Prepaid concession
fees
|
|
18,578
|
22,909
|
|
Amount due from related
party
|
|
1,482
|
148
|
|
Other current
assets
|
|
10,371
|
6,627
|
|
Deferred tax assets -
current
|
|
5,576
|
6,061
|
|
Total current
assets
|
|
247,721
|
247,665
|
|
Property and equipment,
net
|
|
49,571
|
56,429
|
|
Long-term
investments
|
|
4,325
|
2,047
|
|
Long-term deposits
|
|
20,776
|
15,042
|
|
Deferred tax assets -
non-current
|
|
8,170
|
5,763
|
|
Acquired intangible assets,
net
|
|
1,700
|
13,788
|
|
Goodwill
|
|
-
|
20,734
|
|
Total
assets
|
|
332,263
|
361,468
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable (including
accounts payable of the
|
|
|
|
|
consolidated variable
interest entities without recourse to
|
|
|
|
|
AirMedia Group
Inc. $61,697 and $66,813 as of December 31,
|
|
|
|
|
2011 and September 30,
2012, respectively)
|
|
69,290
|
63,577
|
|
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.
$9,585 and $6,831 as of December 31,
|
|
|
|
|
2011 and September 30,
2012, respectively)
|
|
7,787
|
11,276
|
|
Deferred revenue (including
deferred revenue of the
|
|
|
|
|
consolidated variable
interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$11,516 and $17,615 as of December 31
|
|
|
|
|
2011 and September 30,
2012, respectively)
|
|
17,636
|
11,522
|
|
Income tax payable (including
income tax payable of the
|
|
|
|
|
consolidated variable
interest entities without recourse to
|
|
|
|
|
AirMedia Group Inc.
$332 and $767 as of December 31,
|
|
|
|
|
2011 and September 30,
2012, respectively)
|
|
1,262
|
792
|
|
Amounts due to related parties
(including amounts due to
|
|
|
|
|
related parties of the
consolidated variable interest entities
|
|
|
|
|
without recourse to
AirMedia Group Inc. $443 and $443 as
|
|
|
|
|
of December 31, 2011
and September 30, 2012, respectively)
|
|
443
|
443
|
|
Total current
liabilities
|
|
96,418
|
87,610
|
|
Deferred tax liability -
non-current
|
|
425
|
3,800
|
|
Total
liabilities
|
|
96,843
|
91,410
|
|
Equity
|
|
|
|
|
Ordinary shares
|
|
128
|
128
|
|
Additional paid-in
capital
|
|
278,008
|
275,150
|
|
Treasury stock
|
|
(5,951)
|
(3,775)
|
|
Statutory reserves
|
|
8,049
|
8,049
|
|
Accumulated
deficits
|
|
(74,220)
|
(38,138)
|
|
Accumulated other
comprehensive income
|
|
30,873
|
30,734
|
|
Total AirMedia Group
Inc.'s shareholders' equity
|
|
236,887
|
272,148
|
|
Noncontrolling
interests
|
|
(1,467)
|
(2,090)
|
|
Total
equity
|
|
235,420
|
270,058
|
|
Total liabilities
and equity
|
|
332,263
|
361,468
|
|
AirMedia Group
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In U.S. dollars in
thousands, except share and ADS related data)
|
|
|
Three Months
Ended
|
|
|
September 30,
2012
|
June 30,
2012
|
September 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
73,106
|
68,133
|
70,108
|
Business tax and other
sales tax
|
|
(1,738)
|
(1,550)
|
(1,393)
|
Net
revenues
|
|
71,368
|
66,583
|
68,715
|
Cost of
revenues
|
|
62,555
|
59,831
|
61,723
|
Gross
profit
|
|
8,813
|
6,752
|
6,992
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing *
|
|
4,461
|
4,162
|
4,429
|
General and
administrative *
|
|
5,228
|
5,056
|
5,562
|
Impairment of
goodwill
|
|
20,611
|
-
|
-
|
Impairment of
intangible assets
|
|
9,583
|
-
|
-
|
Total operating
expenses
|
|
39,883
|
9,218
|
9,991
|
Loss from
operations
|
|
(31,070)
|
(2,466)
|
(2,999)
|
Interest
income
|
|
469
|
225
|
254
|
Other income,
net
|
|
379
|
1,047
|
401
|
Loss before income
taxes
|
|
(30,222)
|
(1,194)
|
(2,344)
|
Income tax
benefits
|
|
2,972
|
664
|
205
|
Net loss before net
(loss) income of equity method investments
|
|
(27,250)
|
(530)
|
(2,139)
|
Net (loss) income of
equity method investments
|
|
(66)
|
11
|
75
|
Net
loss
|
|
(27,316)
|
(519)
|
(2,064)
|
Less: Net (loss) income
attributable to noncontrolling interests
|
|
(31)
|
951
|
(381)
|
Net loss attributable
to AirMedia Group Inc.'s shareholders
|
|
(27,285)
|
(1,470)
|
(1,683)
|
Net loss attributable to
AirMedia Group Inc.'s shareholders per
ordinary share
|
|
|
|
|
Basic
|
|
(0.22)
|
(0.01)
|
(0.01)
|
Diluted
|
|
(0.22)
|
(0.01)
|
(0.01)
|
Net loss attributable to
AirMedia Group Inc.'s shareholders per ADS
|
|
|
|
|
Basic
|
|
(0.44)
|
(0.02)
|
(0.03)
|
Diluted
|
|
(0.44)
|
(0.02)
|
(0.03)
|
Weighted average
ordinary shares outstanding used in
computing net loss per ordinary share - basic
|
|
124,123,148
|
125,181,769
|
128,978,404
|
Weighted average
ordinary shares outstanding used in
computing net loss per ordinary share - diluted
|
|
124,123,148
|
125,181,769
|
128,978,404
|
* Share-based
compensation charges included are as follow:
|
|
|
|
|
Selling and
marketing
|
|
174
|
297
|
679
|
General and
administrative
|
|
539
|
696
|
1,706
|
AirMedia Group
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
INCOME
|
(In U.S. dollars in
thousands, except share and ADS related data)
|
|
Three Months
Ended
|
|
September 30,
2012
|
June 30,
2012
|
September 30,
2011
|
Net loss
|
(27,316)
|
(519)
|
(2,064)
|
Other comprehensive
income (loss)
|
2,548
|
(2,255)
|
3,413
|
Comprehensive (loss)
income
|
(24,768)
|
(2,774)
|
1,349
|
Less: comprehensive
(income) loss attributable to
the noncontrolling interest
|
(46)
|
968
|
(404)
|
Comprehensive (loss)
income attributable to
AirMedia Group Inc.'s shareholders
|
(24,722)
|
(3,742)
|
1,753
|
AirMedia Group
Inc.
|
RECONCILIATION OF
GAAP NET LOSS AND EPS TO NON-GAAP ADJUSTED NET INCOME AND
EPS
|
(In U.S. dollars in
thousands, except share and ADS related data)
|
|
|
Three Months
Ended
|
|
|
September 30,
2012
|
June 30,
2012
|
September 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to AirMedia Group
Inc.'s shareholders
|
|
(27,285)
|
(1,470)
|
(1,683)
|
Amortization of acquired
intangible assets
|
|
720
|
816
|
947
|
Share-based
compensation
|
|
713
|
993
|
2,385
|
Impairment of
goodwill
|
|
20,611
|
-
|
-
|
Impairment of intangible
assets
|
|
9,583
|
-
|
-
|
Adjusted net income
attributable to
AirMedia Group Inc.'s shareholders
(non-GAAP)
|
|
4,342
|
339
|
1,649
|
|
|
|
|
|
Adjusted net income
attributable to
AirMedia Group Inc.'s shareholders
per share (non-GAAP)
|
|
|
|
|
Basic
|
|
0.03
|
0.00
|
0.01
|
Diluted
|
|
0.03
|
0.00
|
0.01
|
|
|
|
|
|
Adjusted net income
attributable to
AirMedia Group Inc.'s shareholders
per ADS (non-GAAP)
|
|
|
|
|
Basic
|
|
0.07
|
0.01
|
0.03
|
Diluted
|
|
0.07
|
0.01
|
0.03
|
|
|
|
|
|
Shares used in computing
adjusted basic
net income attributable to AirMedia Group
Inc.'s shareholders per share (non-GAAP)
|
|
124,123,148
|
125,181,769
|
128,978,404
|
Shares used in computing
adjusted diluted
net income attributable to AirMedia Group
Inc.'s shareholders per share (non-GAAP)
|
|
124,123,148
|
125,181,769
|
128,978,404
|
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
|
|
|
September 30,
2012
|
June 30,
2012
|
September 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP)
|
|
39,883
|
9,218
|
9,991
|
Amortization of acquired
intangible assets
|
|
720
|
816
|
947
|
Share-based
compensation
|
|
713
|
993
|
2,385
|
Impairment of
goodwill
|
|
20,611
|
-
|
-
|
Impairment of intangible
assets
|
|
9,583
|
-
|
-
|
|
|
|
|
|
Adjusted operating
expenses (non-GAAP)
|
|
8,256
|
7,409
|
6,659
|
|
|
|
|
|
Adjusted operating
expenses as a percentage
of net revenues (non-GAAP)
|
|
11.6%
|
11.1%
|
9.7%
|
AirMedia Group
Inc.
|
RECONCILIATION OF
GAAP LOSS FROM OPERATIONS TO NON-GAAP ADJUSTED INCOME (LOSS) FROM
OPERATIONS
|
(In U.S. dollars in
thousands, except for percentages)
|
|
|
Three Months
Ended
|
|
|
September 30,
2012
|
June 30,
2012
|
September 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(31,070)
|
(2,466)
|
(2,999)
|
Amortization of acquired
intangible assets
|
|
720
|
816
|
947
|
Share-based
compensation
|
|
713
|
993
|
2,385
|
Impairment of
goodwill
|
|
20,611
|
-
|
-
|
Impairment of intangible
assets
|
|
9,583
|
-
|
-
|
|
|
|
|
|
Adjusted income
(loss) from operations (non-GAAP)
|
|
557
|
(657)
|
333
|
|
|
|
|
|
Adjusted operating
margin (non-GAAP)
|
|
0.8%
|
-1.0%
|
0.5%
|
SOURCE AirMedia Group Inc.