Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2010
Commission File Number: 001-33765
AIRMEDIA GROUP INC.
17/F, Sky Plaza
No. 46 Dongzhimenwai Street
Dongcheng District, Beijing 100027
The Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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AIRMEDIA GROUP INC.
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By: |
/s/ Conor Chiahung Yang
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Name: |
Conor Chiahung Yang |
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Title: |
Chief Financial Officer |
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Date: March 3, 2010
2
Exhibit Index
Exhibit 99.1 Press Release
3
Exhibit 99.1
Exhibit 99.1
AirMedia Announces Unaudited Fourth Quarter and Fiscal Year 2009 Financial
Results
Beijing, China March 1, 2010 AirMedia Group Inc. (AirMedia or the Company) (Nasdaq:
AMCN), a leading operator of out-of-home advertising platforms in China targeting mid-to-high-end
consumers, today announced its unaudited financial results for the fourth quarter and fiscal year
ended December 31, 2009.
Fourth Quarter 2009 Financial and Business Highlights
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Total revenues increased by 11.7% year-over-year and by 19.8% quarter-over-quarter to
US$45.2 million, a record high in AirMedias operating history. |
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Revenues from traditional media in airports increased by 139.9% year-over-year and by
39.9% quarter-over-quarter to US$10.2 million. |
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Net loss attributable to AirMedias shareholders was US$12.4 million. Basic and diluted
loss attributable to AirMedias shareholders per American Depositary Share (ADS) were
both US$0.19. |
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Adjusted net loss attributable to AirMedias shareholders (non-GAAP), which is net loss
attributable to AirMedias shareholders excluding share-based compensation expenses and
amortization of acquired intangible assets, was US$10.0 million. Adjusted basic and
diluted net loss attributable to AirMedias shareholders per ADS (non-GAAP) were both
US$0.15. |
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Average advertising revenue per time slot sold (the ASP) of digital frames in
airports, digital TV screens in airports, digital TV screens on airplanes, and traditional
media in airports all improved quarter-over-quarter. |
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Utilization rates of digital frames in airports, digital TV screens on airplanes, and
traditional media in airports improved quarter-over-quarter. |
Fiscal Year 2009 Financial Highlights
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Total revenues increased by 21.5% year-over-year to US$152.5 million. |
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Revenues from digital frames in airports grew by 47.2% year-over-year to US$66.3
million. |
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Net loss attributable to AirMedias shareholders was US$30.2 million. Basic and diluted
loss attributable to AirMedias shareholders per ADS were both US$0.46. |
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Adjusted net loss attributable to AirMedias shareholders (non-GAAP), which is net loss
excluding share-based compensation expenses and amortization of acquired intangible
assets, was US$21.9 million. Adjusted basic and diluted loss attributable to AirMedias
shareholders per ADS (non-GAAP) were both US$0.33. |
Total revenues reached US$45.2 million in the fourth quarter of 2009, a record high in our
operating history, which demonstrates the recovery of the advertising sector in China. 2009 has
been a year of media expansion for AirMedia. During the year, within the air travel advertising
sector, we expanded our digital frame network to 31 airports, including all the top 15 airports in
China, further enhanced our media presence in the top tier airports and extended our leading
position to traditional media in the top tier airports. Outside the air travel advertising sector,
we obtained exclusive concession rights until the end of 2014 to put our media in Sinopecs gas
stations across China, commented Herman Guo, chairman and chief executive officer of AirMedia.
1
We are inspired by the strong recovery of advertising expenditure of our customers, which is
reflected in our first quarter 2010 revenue guidance. In general, the first quarter is the lowest
quarter of the year for advertising due to the Spring Festival, with revenues showing a sequential
drop from the fourth quarter of the previous year. However, so far this year, due to strong demand
from advertisers, we have not experienced the usual seasonality. We expect the recovery in
advertising to continue throughout the year based on feedback from our advertisers indicating their
confidence in the Chinese economy and confirming incremental advertising budget increases at the
beginning of the year. We believe the valuable media resources we captured during the recent
economic downturn will bring significant commercial benefits and turn 2010 into a year of
harvesting, continued Herman Guo.
Conor Yang, AirMedias chief financial officer, added, Net loss increased sequentially in the
fourth quarter of 2009 due to certain one-time penalties imposed on us for terminating the
operation of some unprofitable media. However, we expect that the terminations of the operation of
certain unprofitable media, which began in the fourth quarter of 2009 and continued into the first
quarter of 2010, will reduce our concession fees by approximately US$11.3 million in 2010. We
believe that such terminations will only have a temporary negative impact on our business and will
be good for the Company in the long term. We are encouraged to see revenues from traditional media
in airports, which were the biggest drag on our recent performance, grow significantly in the
fourth quarter of 2009. The sequential increases in ASPs of all our major products and the
sequential improvement in utilization rates of most of our products further boosted our confidence
in the recovery of the overall economy and the advertising sector in particular.
Fourth Quarter 2009 Financial Results
Revenues
Total revenues by product line (numbers in US$000s except for percentages):
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Quarter |
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Quarter |
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Quarter |
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Ended |
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Ended |
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Ended |
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Y/Y |
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Q/Q |
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December |
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% of Total |
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September |
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% of Total |
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December |
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% of Total |
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Growth |
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Growth |
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31, 2009 |
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Revenues |
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30, 2009 |
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Revenues |
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31, 2008 |
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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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45,097 |
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99.8 |
% |
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37,726 |
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100.0 |
% |
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40,462 |
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100.0 |
% |
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11.5 |
% |
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19.5 |
% |
Digital frames in airports |
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20,673 |
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45.7 |
% |
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17,059 |
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45.2 |
% |
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17,231 |
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42.6 |
% |
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20.0 |
% |
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21.2 |
% |
Digital TV screens in airports |
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7,498 |
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16.6 |
% |
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8,412 |
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22.3 |
% |
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11,388 |
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28.1 |
% |
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-34.2 |
% |
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-10.9 |
% |
Digital TV screens on airplanes |
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6,271 |
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13.9 |
% |
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4,053 |
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10.7 |
% |
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4,123 |
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10.2 |
% |
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52.1 |
% |
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54.7 |
% |
Traditional media in airports |
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10,215 |
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22.6 |
% |
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7,304 |
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19.4 |
% |
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4,258 |
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10.5 |
% |
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139.9 |
% |
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39.9 |
% |
Other revenues in air travel |
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440 |
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1.0 |
% |
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898 |
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2.4 |
% |
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3,462 |
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8.6 |
% |
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-87.3 |
% |
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-51.0 |
% |
Gas Station Media Network |
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102 |
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0.2 |
% |
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N/A |
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N/A |
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Total revenues |
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45,199 |
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100.0 |
% |
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37,726 |
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100.0 |
% |
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40,462 |
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100.0 |
% |
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11.7 |
% |
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19.8 |
% |
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Net revenues |
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44,256 |
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37,174 |
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38,190 |
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15.9 |
% |
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19.1 |
% |
Total revenues for the fourth quarter of 2009 reached US$45.2 million, representing a
year-over-year increase of 11.7% from US$40.5 million and a quarter-over-quarter increase of 19.8%
from US$37.7 million. The year-over-year and quarter-over-quarter increases were due to increases
in revenues from digital frames in airports, digital TV screens on airplanes, traditional media in
airports and gas station media network.
Revenues from digital frames in airports
Revenues from digital frames in airports for the fourth quarter of 2009 increased by 20.0%
year-over-year and by 21.2% quarter-over-quarter to US$20.7 million. The year-over-year increase
was due to an increase in the number of time slots sold, partially offset by a decrease in the ASP.
The quarter-over-quarter increase was due to increases in both the number of time slots sold and
the ASP. Please refer to Summary of Selected Operating Data below for detailed definitions of the
operating data cited in this press release.
2
The number of time slots sold for the fourth quarter of 2009 increased by 110.6% year-over-year and
by 18.8% quarter-over-quarter to 9,724 time slots. The year-over-year and quarter-over-quarter
increases were due to continued sales efforts and growing acceptance of AirMedias digital frames.
AirMedias digital frames were operated in 31 airports in the fourth quarter of 2009, up from 22
airports at the end of the fourth quarter of 2008, and remained unchanged from the third quarter of
2009. The number of time slots available for sale for the fourth quarter of 2009 increased by 53.1%
year-over-year and by 4.7% quarter-over-quarter to 30,290 time slots. The year-over-year increase
was primarily due to an increase in the number of airports in AirMedias digital frame network. The
quarter-over-quarter increase was primarily due to the full-quarter operations of the additional
digital frame product lines in the Beijing airport, Shanghais two airports, the Guangzhou airport,
the Chengdu airport and the Hangzhou airport, which AirMedia commenced to operate in the middle of
the previous quarter, and the commencement of operations of an additional digital frame product
line in the Guiyang airport. The utilization rate of digital frames for the fourth quarter of 2009
increased by 8.8 percentage points year-over-year and 3.8 percentage points quarter-over-quarter to
32.1%, primarily due to the increase in the number of time slots sold.
The ASP of digital frames for the fourth quarter of 2009 decreased by 43.0% year-over-year and
increased by 2.0% quarter-over-quarter to US$2,126. The year-over-year decrease was primarily due
to higher discounts offered in the fourth quarter of 2009 than in the same period one year ago. The
quarter-over-quarter increase was primarily due to the change in 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
fourth quarter of 2009 than in the previous quarter.
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for the fourth quarter of 2009 decreased by 34.2%
year-over-year and by 10.9% quarter-over-quarter to US$7.5 million, primarily due to a decrease in
the number of time slots sold.
The number of time slots sold for the fourth quarter of 2009 decreased by 28.9% year-over-year and
by 28.2% quarter-over-quarter to 4,062 time slots. The year-over-year decrease was primarily due to
advertisers shift in their budget allocations from our digital TV screens in airports to our other
products in airports and on airplanes. The quarter-over-quarter decrease was due to advertisers
shift in their budget allocations and lower discounts offered, which resulted in fewer time slots
sold when advertisers spent the same amount of budgets as in the previous quarter. The number of
time slots available for sale for the fourth quarter of 2009 was 25,629 time slots, which remained
relatively unchanged year-over-year and quarter-over-quarter. The utilization rate for the fourth
quarter of 2009 decreased by 6.4 percentage points year-over-year and by 6.2 percentage point
quarter-over-quarter to 15.8%, primarily due to the decrease in the number of time slots sold.
The ASP of digital TV screens in airports for the fourth quarter of 2009 decreased by 7.4%
year-over-year and increased by 24.2% quarter-over-quarter to US$1,847. The year-over-year decrease
was primarily due to the change in the mix of the time slots sold. The number of time slots sold in
the airports other than the top three airports, which have significantly lower ASPs
than those sold in the top three airports, accounted for a higher percentage of total number of
time slots sold in the fourth quarter of 2009 than in the same period one year ago. The
quarter-over-quarter increase was due to lower discounts offered to clients, reflecting the
recovering Chinese economy.
3
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for the fourth quarter of 2009 increased by 52.1%
year-over-year and by 54.7% quarter-over-quarter to US$6.3 million. The year-over-year and
quarter-over-quarter increases were due to increases in both the number of time slots sold and the
ASP of digital TV screens on airplanes.
The number of time slots sold for the fourth quarter of 2009 increased by 39.8% year-over-year and
by 28.6% quarter-over-quarter to 274 time slots due to continued sales efforts. The number of time
slots available for sale for the fourth quarter of 2009 decreased by 7.4% year-over-year to 450
time slots and remained unchanged quarter-over-quarter. The utilization rate for the fourth quarter
of 2009 increased by 20.6 percentage points year-over-year and increased by 13.6 percentage points
quarter-over-quarter to 60.9%. The year-over-year and quarter-over-quarter increases were primarily
due to the increase in the number of time slots sold.
The ASP of digital TV screens on airplanes for the fourth quarter of 2009 increased by 8.7%
year-over-year and by 20.3% quarter-over-quarter to US$22,887. The year-over-year increase in the
ASP was primarily due to 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 those sold on the
other airlines, accounted for a higher percentage of total number of time slots sold in the fourth
quarter of 2009 than in the same period one year ago. The quarter-over-quarter increase in the ASP
was due to lower discounts offered in the fourth quarter of 2009 than in the previous quarter, as
well as 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 those sold on the other airlines,
accounted for a higher percentage of total number of time slots sold in the fourth quarter of 2009
than in the previous quarter.
Revenues from traditional media in airports
Please note that part of the prior comparative figure of Other Displays has been reclassified to
Traditional Media in Airports to conform to the current presentation.
Revenues from traditional media in airports for the fourth quarter of 2009 primarily included
revenues from traditional media in Beijing Capital International Airport, Shenzhen International
Airport and Wenzhou Yongqiang Airport, as well as revenues from billboards and painted
advertisements on gate bridges in certain airports. Revenues from traditional media in airports for
the fourth quarter of 2009 increased by 139.9% year-over-year and by 39.9% quarter-over-quarter to
US$10.2 million. The year-over-year increase was primarily due to the commencement of operations of
traditional media in the Beijing and Shenzhen airports in April 2009. The quarter-over-quarter
increase was primarily due to improved sales of traditional media in the Beijing and Shenzhen
airports.
The number of locations sold for the fourth quarter of 2009 was 358 locations, relatively unchanged
compared to the previous quarter. The number of locations available for sale for the fourth quarter
of 2009 decreased by 14.1% quarter-over-quarter to 864 locations primarily due to the upgrade of
TV-attached light boxes in the Chengdu airport, which were classified as traditional media, to
TV-attached digital frames, which are classified as digital frames. The utilization rate of
traditional media for the fourth quarter of 2009 increased by 5.7 percentage points
quarter-over-quarter to 41.4% primarily due to the decrease in the number of locations available
for sale.
The ASP of traditional media in airports for the fourth quarter of 2009 increased by 40.2%
quarter-over-quarter to US$28,532 primarily due to the change in the mix of the number of locations
sold. The number of traditional media sold in the Beijing and Shenzhen airports, which have higher
ASPs, accounted for a higher percentage of the total number of locations sold in the fourth quarter
of 2009 than in the previous quarter.
4
Revenues from the gas station media network
AirMedia started to put clients advertisements in Sinopecs gas stations in Beijing, Shanghai and
Shenzhen on a trial basis in early December of 2009. Revenues from gas station media network for
the fourth quarter of 2009 were US$102,000.
As of February 28, 2010, AirMedia had installed its media, including scrolling light boxes and
billboards, in a total of 729 Sinopec gas stations, of which 215 are located in Beijing, 249 in
Shanghai, 99 in Shenzhen and the remaining 166 in 10 other cities.
Please refer to Summary of Selected Operating Data for more operating data.
Business tax and other sales tax for the fourth quarter of 2009 were US$943,000, compared to US$2.3
million in the same period one year ago and US$552,000 in the previous quarter. For purposes of
calculating the amount of business and other sales tax, concession fees are permitted to be
deducted from total revenues under applicable PRC tax law.
Net revenues for the fourth quarter of 2009 reached US$44.3 million, representing a year-over-year
increase of 15.9% from US$38.2 million and a quarter-over-quarter increase of 19.1% from US$37.2
million.
Cost of Revenues
Cost of revenues for the fourth quarter of 2009 was US$47.1 million, representing a year-over-year
increase of 102.2% from US$23.3 million and a quarter-over-quarter increase of 24.5% from US$37.8
million. The year-over-year and quarter-over-quarter increases were primarily due to an increase in
concession fees in connection with the expansion of AirMedias business. Cost of revenues as a
percentage of net revenues in the fourth quarter of 2009 was 106.4%, compared to 61.0% in the same
period one year ago and 101.7% in the previous quarter.
AirMedia incurs concession fees to airports for placing and operating digital TV screens, digital
frames, traditional media and other displays in airports, to airlines for playing programs on their
digital TV screens and to Sinopec for placing outdoor media in its gas stations.
During the fourth quarter of 2009, AirMedia terminated the operation of certain unprofitable media
in several airports. The dropping of these unprofitable media resulted in one-time penalties of
US$3.7 million recorded in concession fees in the fourth quarter of 2009.
Concession fees for the fourth quarter of 2009 were US$35.1 million, representing a year-over-year
increase of 129.6% from US$15.3 million and a quarter-over-quarter increase of 25.8% from US$27.9
million. The year-over-year increase was primarily due to newly signed or renewed concession rights
contracts during the period and one-time penalties for terminating the operation of certain
unprofitable media. The quarter-over-quarter increase was primarily due to incremental concession
fees associated with new concession rights contracts entered in the fourth quarter of 2009, full
quarter impact of concession fees associated with concession rights contracts entered in the third
quarter of 2009, and one-time penalties for terminating operation of certain unprofitable media.
Concession fees as a percentage of net revenues in the fourth quarter of 2009 was 79.3%, compared
to 40.1% in the same period one year ago and 75.1% in the previous quarter. The year-over-year
increase of concession fees as a percentage of net revenues was
primarily due to the fact that incremental concession fees associated with new concession rights
contracts were fixed once concession rights contracts were entered into, while revenues generated
from newly signed concession rights contracts would take time to ramp up.
5
Gross Profit/Loss
Gross loss for the fourth quarter of 2009 was US$2.8 million, compared to gross profit of US$14.9
million in the same period one year ago and gross loss of US$628,000 in the previous quarter.
Gross loss as a percentage of net revenues for the fourth quarter of 2009 was negative 6.4%,
compared to gross profit as a percentage of net revenues of 39.0% in the same period one year ago
and gross loss as a percentage of net revenues of negative 1.7% in the previous quarter. The
year-over-year and quarter-over-quarter decreases in gross profit as a percentage of net revenues
were primarily due to the increase in concession fees.
Operating Expenses
Operating expenses (numbers in US$000s except for percentages):
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Quarter |
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Quarter |
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Quarter |
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Ended |
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Ended |
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Ended |
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Y/Y |
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Q/Q |
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December |
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% of Net |
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September |
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% of Net |
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December |
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% of Net |
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Growth |
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Growth |
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31, 2009 |
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Revenues |
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30, 2009 |
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Revenues |
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31, 2008 |
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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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4,121 |
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9.3 |
% |
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3,607 |
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9.7 |
% |
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3,341 |
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8.7 |
% |
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23.3 |
% |
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14.3 |
% |
General and administrative expenses |
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8,274 |
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18.7 |
% |
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7,034 |
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18.9 |
% |
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5,195 |
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13.6 |
% |
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59.3 |
% |
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17.6 |
% |
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Total operating expenses |
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12,395 |
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28.0 |
% |
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10,641 |
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28.6 |
% |
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8,536 |
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22.4 |
% |
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45.2 |
% |
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16.5 |
% |
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Adjusted operating expenses
(non-GAAP) |
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10,031 |
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22.7 |
% |
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8,071 |
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21.7 |
% |
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6,212 |
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16.3 |
% |
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61.5 |
% |
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24.3 |
% |
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Total operating expenses for the fourth quarter of 2009 were US$12.4 million, representing a
year-over-year increase of 45.2% from US$8.5 million and a quarter-over-quarter increase of 16.5%
from US$10.6 million.
Total operating expenses for the fourth quarter of 2009 included share-based compensation expenses
of US$1.8 million, compared to share-based compensation expenses of US$1.7 million in both the same
period one year ago and the previous quarter. Adjusted operating expenses (non-GAAP) for the fourth
quarter of 2009, which excluded share-based compensation expenses and amortization of acquired
intangible assets, were US$10.0 million, representing a year-over-year increase of 61.5% from
US$6.2 million and a quarter-over-quarter increase of 24.3% from US$8.1 million. Adjusted operating
expenses as a percentage of net revenues (non-GAAP) in the fourth quarter of 2009 was 22.7%,
compared to 16.3% in the same period one year ago and 21.7% in the previous quarter.
Please refer to the attached table for a reconciliation of operating expenses under U.S. GAAP to
adjusted operating expenses (non-GAAP).
Selling and marketing expenses for the fourth quarter of 2009 were US$4.1 million, including
share-based compensation expenses of US$523,000. This represented a year-over-year increase of
23.3% from US$3.3 million and a quarter-over-quarter increase of 14.3% from US$3.6 million. The
year-over-year increase was primarily due to higher expenses related to expansion of the direct
sales force and increased share-based compensation expenses. The quarter-over-quarter increase was
primarily due to higher expenses related to the expansion of the direct sales force for the new
advertising network in Sinopecs gas stations.
General and administrative expenses for the fourth quarter of 2009 were US$8.3 million, including
share-based compensation expenses of US$1.3 million, representing a year-over-year increase of
59.3% from US$5.2 million and a quarter-over-quarter increase of 17.6% from US$7.0 million. The
year-over-year increase was primarily due to higher bad-debt provisions, headcount increase and
increased expenses of office and utilities. The quarter-over-quarter increase was primarily due to
higher bad-debt provisions, headcount increase, higher professional fees, and increases in other
various expenses. In response to significant budget cuts by multinational corporation clients in
2009, the Company provided services to some new, smaller domestic clients, which resulted in
certain doubtful accounts. The Company decided to take a prudent approach by making additional
allowance for doubtful accounts in the fourth quarter of 2009.
6
Income/Loss from Operations
Loss from operations for the fourth quarter of 2009 was US$15.2 million, as compared to income from
operations of US$6.4 million in the same period one year ago and loss from operations of US$11.3
million in the previous quarter.
Adjusted loss from operations (non-GAAP) for the fourth quarter of 2009, which excluded share-based
compensation expenses and amortization of acquired intangible assets, was US$12.8 million, compared
to adjusted income from operations (non-GAAP) of US$8.7 million in the same period one year ago and
adjusted loss from operations (non-GAAP) of US$8.7 million in the previous quarter. Adjusted
operating margin (non-GAAP) for the fourth quarter of 2009, which excluded the effect of
share-based compensation expenses and amortization of acquired intangible assets, was negative
29.0%, compared to 22.8% in the same period one year ago and negative 23.4% in the previous
quarter.
Please refer to the attached table for a reconciliation of income/loss from operations under U.S.
GAAP to adjusted income/loss from operations (non-GAAP).
Income Tax Benefit/Expense
Income tax benefit for the fourth quarter of 2009 was US$2.0 million, compared to income tax
benefit of US$352,000 in the same period one year ago and income tax benefit of US$875,000 in the
previous quarter.
Net Income/Loss Attributable to AirMedias Shareholders
Net loss attributable to AirMedias shareholders for the fourth quarter of 2009 was US$12.4
million, compared to net income attributable to AirMedias shareholders of US$8.1 million in the
same period one year ago and net loss attributable to AirMedias shareholders of US$9.6 million in
the previous quarter. The basic net loss attributable to AirMedias shareholders per ADS for the
fourth quarter of 2009 was US$0.19, compared to basic net income attributable to AirMedias
shareholders per ADS of US$0.12 in the same period one year ago and basic net loss attributable to
AirMedias shareholders per ADS of US$0.15 in the previous quarter. The diluted net loss
attributable to AirMedias shareholders per ADS for the fourth quarter of 2009 was US$0.19,
compared to diluted net income attributable to AirMedias shareholders per ADS of US$0.12 in the
same period one year ago and diluted net loss attributable to AirMedias shareholders per ADS of
US$0.15 in the previous quarter.
Adjusted net loss attributable to AirMedias shareholders (non-GAAP) for the fourth quarter of
2009, which is net loss attributable to AirMedias shareholders excluding share-based compensation
expenses and amortization of acquired intangible assets, was US$10.0 million, compared to adjusted
net income attributable to AirMedias shareholders (non-GAAP) of US$10.5 million in the same period
one year ago and adjusted net loss attributable to AirMedias shareholders (non-GAAP) of US$7.0
million in the previous quarter. Basic adjusted net loss
attributable to AirMedias shareholders per ADS (non-GAAP) for the fourth quarter of 2009 was
US$0.15, compared to basic adjusted net income attributable to AirMedias shareholders per ADS
(non-GAAP) of US$0.16 in the same period one year ago and basic adjusted net loss attributable to
AirMedias shareholders per ADS (non-GAAP) of US$0.11 in the previous quarter. Diluted adjusted net
loss attributable to AirMedias shareholders per ADS (non-GAAP) for the fourth quarter of 2009 was
US$0.15, compared to diluted adjusted net income attributable to AirMedias shareholders per ADS
(non-GAAP) of US$0.16 in the same period one year ago and diluted adjusted net loss attributable to
AirMedias shareholders per ADS (non-GAAP) of US$0.11 in the previous quarter.
7
Please refer to the attached table for a reconciliation of net loss/income attributable to
AirMedias shareholders and basic and diluted net loss/income attributable to AirMedias
shareholders per ADS under U.S. GAAP to adjusted net loss/income attributable to AirMedias
shareholders and basic and diluted adjusted net loss/income attributable to AirMedias shareholders
per ADS (non-GAAP).
Cash, Restricted Cash and Short-term Investments
Excluding restricted cash of US$1.4 million, cash and short-term investments totaled US$124.3
million as of December 31, 2009, compared to US$117.3 million as of September 30, 2009 and US$161.5
million as of December 31, 2008. The increase in cash and short-term investments from September 30,
2009 was primarily due to an increase in cash flow from operations.
Fiscal Year 2009 Financial Results
Revenues
Total revenues by product line (numbers in US$000s except for percentages):
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Y/Y |
|
|
|
December 31, |
|
|
% of Total |
|
|
December 31, |
|
|
% of Total |
|
|
Growth |
|
|
|
2009 |
|
|
Revenues |
|
|
2008 |
|
|
Revenues |
|
|
rate |
|
Air Travel Media Network |
|
|
152,428 |
|
|
|
99.9 |
% |
|
|
125,540 |
|
|
|
100.0 |
% |
|
|
21.4 |
% |
Digital frames in airports |
|
|
66,255 |
|
|
|
43.4 |
% |
|
|
45,011 |
|
|
|
35.9 |
% |
|
|
47.2 |
% |
Digital TV screens in airports |
|
|
37,260 |
|
|
|
24.4 |
% |
|
|
47,591 |
|
|
|
37.9 |
% |
|
|
-21.7 |
% |
Digital TV screens on airplanes |
|
|
17,082 |
|
|
|
11.2 |
% |
|
|
19,227 |
|
|
|
15.3 |
% |
|
|
-11.2 |
% |
Traditional media in airports |
|
|
27,192 |
|
|
|
17.8 |
% |
|
|
6,490 |
|
|
|
5.2 |
% |
|
|
319.0 |
% |
Other revenues in air travel |
|
|
4,639 |
|
|
|
3.1 |
% |
|
|
7,221 |
|
|
|
5.7 |
% |
|
|
-35.8 |
% |
Gas Station Media Network |
|
|
102 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
152,530 |
|
|
|
100.0 |
% |
|
|
125,540 |
|
|
|
100.0 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
149,428 |
|
|
|
|
|
|
|
119,433 |
|
|
|
|
|
|
|
25.1 |
% |
Total revenues for the fiscal year 2009 were US$152.5 million, representing a year-over-year
increase of 21.5% from US$125.5 million in fiscal year 2008. The year-over-year increase was
primarily due to the increases of revenues from digital frames in airports and traditional media in
airports.
Revenues from digital frames in airports
Revenues from digital frames in airports for fiscal year 2009 increased by 47.2% year-over-year to
US$66.3 million due to the increase in the number of time slots sold.
The number of time slots sold increased by 182.3% year-over-year to 26,983 time slots due to
continued sales efforts and growing acceptance of AirMedias digital frames. The number of airports
where AirMedia operates digital frames was 31 at the end of 2009, up from 22 at the end of 2008.
The number of time slots available for sale for fiscal year 2009 increased by 125.4% year-over-year
to 109,455 time slots. The year-over-year increase in the number of time slots available for sale
was primarily due to the increase in the number of airports in AirMedias digital frame network.
The utilization rate of digital frames for fiscal year 2009 increased by 5.0 percentage points to
24.7% due to the increase in the number of time slots sold.
The ASP of digital frames for fiscal year 2009 decreased by 47.9% year-over-year to US$2,455 due to
higher discounts offered in 2009 than in 2008 and the change in the mix of the time slots sold. The
number of time slots sold in the Beijing airport, which have significantly higher ASPs than those
sold in other airports, accounted for a lower percentage of the total number of time slots sold in
2009 than in 2008 due to sales ramp-up in other airports.
8
Revenues from digital TV screens in airports
Revenues from digital TV screens in airports for fiscal year 2009 decreased by 21.7% year-over-year
to US$37.3 million due to decreases in both the number of time slots sold and the ASP of digital TV
screens in airports.
The number of time slots sold decreased by 12.2% year-over-year to 23,911 time slots primarily
because advertisers shifted their budget allocations from our digital TV screens in airports to our
other products, especially digital frames in airports. The number of time slots available for sale
increased by 1.7% year-over-year to 102,322 time slots in 2009. Utilization rate of digital TV
screens in airports decreased by 3.7 percentage points year-over-year to 23.4% primarily due to the
decrease in time slots sold.
The ASP decreased by 10.9% year-over-year to US$1,558 primarily due to higher discounts offered in
2009.
Revenues from digital TV screens on airplanes
Revenues from digital TV screens on airplanes for fiscal year 2009 decreased by 11.2%
year-over-year to US$17.1 million primarily due to a decrease in the number of time slots sold.
The number of time slots sold for fiscal year 2009 decreased by 12.9% year-over-year to 838 time
slots primarily because advertisers shifted their budget allocations from our digital TV screens on
airplanes to our other products, especially digital frames in airports. The number of time slots
available for sale for fiscal year 2009 increased by 1.6% to 1,908 time slots due to additional
advertising time on airplanes. Utilization rate for fiscal year 2009 decreased by 7.3 percentage
points year-over-year to 43.9% due to the decrease in the number of time slots sold.
The ASP increased by 2.0% year-over-year to US$20,384 due to the change in the mix of time slots
sold. The number of time slots sold on the three largest airlines, which have significantly higher
ASPs than those sold on the other airlines, accounted for a slightly higher percentage in 2009 than
in 2008.
Revenues from traditional media in airports
Revenues from traditional media in airports for fiscal year 2009 increased by 319.0% year-over-year
to US$27.2 million. The year-over-year increase was primarily due to the commencement of operations
of traditional media in the Beijing and Shenzhen airports in April 2009 and the full year
operations of billboards and painted advertisements on gate bridges in certain airports and
traditional media in the Wenzhou airport in 2009.
The number of locations sold for fiscal year 2009 was 1,271 locations. The number of locations
available for fiscal year 2009 was 3,564 locations. The utilization rate of traditional media for
fiscal year 2009 was 35.7%.
The ASP of traditional media in airports for fiscal year 2009 was US$21,394.
Please refer to Summary of Selected Operating Data for more operating data.
Business tax and other sales tax for fiscal year 2009 was US$3.1 million, representing a
year-over-year decrease of 49.2% from US$6.1 million in fiscal year 2008 due to a significant
increase in concession fees, which was deducted from total revenues when calculating business tax
as permitted under applicable PRC tax law.
Net revenues for fiscal year 2009 were US$149.4 million, representing a year-over-year increase of
25.1% from US$119.4 million in fiscal year 2008.
9
Cost of Revenues
Cost of revenues for fiscal year 2009 was US$147.5 million, representing a year-over-year increase
of 107.8% from US$71.0 million in fiscal year 2008 due to increases in concession fees and other
components of cost of revenues. Cost of revenues as a percentage of net revenues in fiscal year
2009 increased to 98.7% from 59.4% in fiscal year 2008.
Concession fees for fiscal year 2009 were US$110.1 million, representing a year-over-year increase
of 141.0% from US$45.7 million in fiscal year 2008 due to additional new concession contracts
signed in 2009. Concession fees as a percentage of net revenues in fiscal year 2009 increased to
73.7% from 38.2% in fiscal year 2008 because concession fees were fixed once concession rights
contracts were entered into, while revenues generated from newly signed concession rights contracts
need time to ramp up.
Gross Profit
Gross profit for fiscal year 2009 was US$1.9 million, representing a year-over-year decrease of
96.1% from US$48.4 million in fiscal year 2008.
Gross profit as a percentage of net revenues for fiscal year 2009 was 1.3%, down from 40.6% in
fiscal year 2008. The decrease in gross profit as a percentage of net revenues was primarily due to
the increase in concession fees.
Operating Expenses
Operating expenses (numbers in US$000s except for percentages):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Y/Y |
|
|
|
December 31, |
|
|
% of Net |
|
|
December 31, |
|
|
% of Net |
|
|
Growth |
|
|
|
2009 |
|
|
Revenues |
|
|
2008 |
|
|
Revenues |
|
|
rate |
|
Selling and marketing expenses |
|
|
13,439 |
|
|
|
9.0 |
% |
|
|
10,171 |
|
|
|
8.5 |
% |
|
|
32.1 |
% |
General and administrative expenses |
|
|
25,597 |
|
|
|
17.1 |
% |
|
|
14,374 |
|
|
|
12.0 |
% |
|
|
78.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
39,036 |
|
|
|
26.1 |
% |
|
|
24,545 |
|
|
|
20.6 |
% |
|
|
59.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (non-GAAP) |
|
|
30,657 |
|
|
|
20.5 |
% |
|
|
18,412 |
|
|
|
15.4 |
% |
|
|
66.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses for fiscal year 2009 were US$39.0 million, representing a year-over-year
increase of 59.0% from US$24.5 million in fiscal year 2008.
Total operating expenses for fiscal year 2009 included share-based compensation expenses of US$5.8
million, compared to US$5.0 million in fiscal year 2008. Adjusted operating expenses (non-GAAP) for
fiscal year 2009, which excluded share-based compensation expenses and amortization of acquired
intangible assets, were US$30.7 million, representing a year-over-year increase of 66.5% from
US$18.4 million in fiscal year 2008. Adjusted operating expenses as a percentage of net revenues
(non-GAAP) in fiscal year 2009 was 20.5%, compared to 15.4% in fiscal year 2008.
Selling and marketing expenses for fiscal year 2009 were US$13.4 million, including US$1.5 million
of share-based compensation expenses. This represented a year-over-year increase of 32.1% from
US$10.2 million in fiscal year 2008, primarily due to higher expenses related to expansion of the
direct sales force and increased share-based compensation expenses.
General and administrative expenses for fiscal year 2009 were US$25.6 million, including $4.2
million of share-based compensation expenses. This represented a year-over-year increase of 78.1%
from US$14.4 million in fiscal year 2008 primarily due to higher bad-debt provisions, increased
amortization of acquired intangible assets, headcount increase, higher professional fees, increased
expenses of office and utilities, and increased share-based compensation expenses.
10
Income/Loss from Operations
Loss from operations for fiscal year 2009 was US$37.1 million, compared to income from operations
of US$23.9 million in fiscal year 2008.
Adjusted loss from operations (non-GAAP) for fiscal year 2009, which excluded share-based
compensation expenses and amortization of acquired intangible assets, was US$28.8 million, compared
to adjusted income from operations (non-GAAP) of US$30.0 million in fiscal year 2008. Adjusted
operating margin (non-GAAP) for fiscal year 2009, which excluded the effect of share-based
compensation expenses and amortization of acquired intangible assets, was negative 19.3%, compared
to 25.1% in fiscal year 2008.
Please refer to the attached table for a reconciliation of income/loss from operations under U.S.
GAAP to adjusted income/loss from operations (non-GAAP).
Income Tax Benefit
Income tax benefit for fiscal year 2009 was US$3.7 million, compared to income tax benefit of
US$498,000 in fiscal year 2008.
Net Income/Loss Attributable to AirMedias Shareholders
Net loss attributable to AirMedias shareholders for fiscal year 2009 was US$30.2 million, compared
to net income attributable to AirMedias shareholders of US$30.2 million in fiscal year 2008. Basic
net loss attributable to AirMedias shareholders per ADS for fiscal year 2009 was US$0.46, compared
to basic net income attributable to AirMedias shareholders per ADS of US$0.45 in fiscal year 2008.
Diluted net loss attributable to AirMedias shareholders per ADS for fiscal year 2009 was US$0.46,
compared to diluted net income attributable to AirMedias shareholders per ADS of US$0.44 in fiscal
year 2008.
Adjusted net loss attributable to AirMedias shareholders (non-GAAP) for fiscal year 2009, which
excluded share-based compensation expenses and amortization of acquired intangible assets, was
US$21.9 million, compared to Adjusted net income attributable to AirMedias shareholders of
(non-GAAP) of US$36.3 million in fiscal year 2008. Basic adjusted net loss attributable to
AirMedias shareholders per ADS (non-GAAP) for fiscal year 2009 was US$0.33, compared to basic
adjusted net income attributable to AirMedias shareholders per ADS (non-GAAP) of US$0.54 in fiscal
year 2008. Diluted adjusted net loss attributable to AirMedias shareholders per ADS (non-GAAP) for
fiscal year 2009 was US$0.33, compared to diluted adjusted net income attributable to AirMedias
shareholders per ADS (non-GAAP) of US$0.53 in fiscal year 2008.
Please refer to the attached table for a reconciliation of net loss/income attributable to
AirMedias shareholders and basic and diluted net loss/income attributable to AirMedias
shareholders per ADS under U.S. GAAP to adjusted net loss/income attributable to AirMedias
shareholders and basic and diluted adjusted net loss/income attributable to AirMedias shareholders
per ADS (non-GAAP).
ADS Repurchases
On December 29, 2008, AirMedias board of directors authorized AirMedia to repurchase up to US$50
million worth of its own outstanding ADSs throughout 2009. As of December 31, 2009,
the aggregate number of ADSs AirMedia has repurchased on the open market is 1,646,502 ADSs for a
total consideration of US$7.4 million. The ADS repurchase program expired on December 31, 2009.
11
Management Announcement
Mr. Conor Yang, AirMedias chief financial officer, tendered his resignation as chief financial
officer of the Company for personal reasons, effective March 10, 2010. Mr. Yang will serve as
AirMedias consultant to continue contributing his knowledge and expertise to the Company.
AirMedias board of directors has appointed Mr. Xiaoya Zhang, its director and president, as
interim chief financial officer of the Company, effective March 10, 2010. The Company has initiated
the search for a new chief financial officer.
Other Recent Developments
Starting from the fourth quarter of 2009, AirMedia has terminated the operation of certain
unprofitable media in several airports, including some of the traditional media in Beijing Capital
International Airport. The dropping of these unprofitable media is expected to reduce our
concession fees by approximately US$11.3 million in 2010. Most of those dropped media had
previously not been sold out, nor had they made meaningful contribution to revenues. After the
revision of the original concession rights contract, AirMedia still operates a substantial portion
of the traditional media in the Beijing airport.
AirMedia increased its listing prices of various media in the first quarter of 2010 and the fourth
quarter of 2009. Starting from January 2010, AirMedia increased the listing prices of its
TV-attached digital frames in the Beijing and Guangzhou airports by 20% to 30%. Also starting from
January 2010, AirMedia increased its listing prices of digital TV screens on Air Chinas airplanes
by 20%. Starting from October 2009, AirMedia increased the length of advertising cycle of its
digital frames in Shanghais two airports, and decreased the frequencies of the advertising, which
resulted in an over 60% increase in their effective listing prices. Starting from October 2009,
AirMedia increased the listing prices of its mega-size LEDs in the Guangzhou airport by
approximately 38%. Starting from October 2009, AirMedia increased the listing prices of its
stand-alone digital frames in the Chengdu Airport by over 30%. Starting from September 25, 2009,
AirMedia increased the length of advertising cycle of its 108 digital frames in the Beijing and
Guangzhou airports, which resulted in a 33% increase in their effective listing prices.
On February 4, 2010, AirMedia commenced operations of 20 newly installed 70-inch stand-alone
digital frames in Harbin Taiping International Airport, which expanded AirMedias digital frame
network to 32 airports, including all of the 15 largest airports in China.
On January 6, 2010, AirMedia separately entered into definitive agreements to acquire 100% of the
equity interest in Easy Shop Ltd. and 90% of the equity interest in Beijing AirMedia City Outdoor
Advertising Co., Ltd., with total consideration of US$13.9 million. The transactions were closed in
the first quarter of 2010. After the completion of the transactions, AirMedia now holds 100% equity
interest in Beijing AirMedia City Outdoor Advertising Co., Ltd. The transactions enable AirMedia to
operate 38 unipole signs and other outdoor media across Beijing.
On October 21, 2009, AirMedia entered into a definitive agreement, with total consideration of
US$0.7 million, to acquire 30% of the equity interest in Beijing Dongding Media Co., Ltd., which
has exclusive rights obtained from the Fire Department of the Beijing Municipal Public Security
Bureau to build and operate thousands of billboards for public service advertising in various
locations across Beijing until July 31, 2014. Part of each billboard can be used for commercial
advertisements. The transaction was closed in the fourth quarter of 2009. On January 6, 2010,
AirMedia entered into a separate definitive agreement, with total consideration of US$0.9 million,
to acquire an additional 45% of the equity interest in Beijing Dongding Media Co., Ltd. The
transaction was closed in the first quarter of 2010.
On December 24, 2009, AirMedia commenced operations of eight newly installed 70-inch stand-alone
digital frames in Guiyang Longdongbao Airport. Previously, AirMedia only operated TV-attached
digital frames in the Guiyang airport.
12
On December 19, 2009, AirMedia commenced operations of 40 newly installed TV-attached digital
frames in Guangzhou Baiyun International Airport, which increased the number of its TV-attached
digital frames in the Guangzhou airport to 155.
Business Outlook
Including the newly acquired companies, AirMedia currently expects that its total revenues for the
first quarter of 2010 will range from US$48.0 million to US$51.0 million, representing a
year-over-year increase of 46.4% to 55.6% from the same period in 2009. Excluding the newly
acquired companies, AirMedia currently expects that its total revenues for the first quarter of
2010 will range from US$45.4 million to US$48.4 million, representing a year-over-year increase of
38.5% to 47.6% from the same period in 2009.
AirMedia currently expects that concession fees will be at least US$33.4 million in the first
quarter of 2010, including US$2.2 million in concession fees for the newly acquired Beijing
AirMedia City Outdoor Advertising Co., Ltd. The anticipated quarter-over-quarter decrease in
concession fees is primarily attributable to the fact that penalties for terminating the operations
of some unprofitable media were already recognized in the fourth quarter of 2009 and the drop of
some unprofitable media in several airports, which is offset primarily by the increase in the
concession fees associated with outdoor advertising platform in some additional Sinopec service
stations, concession fees to be incurred by the newly acquired Beijing AirMedia City Outdoor
Advertising Co., Ltd., and concession fee commitments under additional concession rights contracts
expected to be entered into in the near future.
The above forecast reflects AirMedias current and preliminary view and is therefore subject to
change. Please refer to our Safe Harbor Statement for the factors that could cause actual results
to differ materially from those contained in any forward-looking statement.
Summary of Selected Operating Data
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Quarter |
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Quarter |
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Quarter |
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Year |
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Year |
|
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Ended |
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|
Ended |
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|
Ended |
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Y/Y |
|
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Q/Q |
|
|
Ended |
|
|
Ended |
|
|
Y/Y |
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|
|
December |
|
|
September |
|
|
December |
|
|
Growth |
|
|
Growth |
|
|
December |
|
|
December |
|
|
Growth |
|
|
|
31, 2009 |
|
|
30, 2009 |
|
|
31, 2008 |
|
|
Rate |
|
|
Rate |
|
|
31, 2009 |
|
|
31, 2008 |
|
|
Rate |
|
Digital frames in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation |
|
|
31 |
|
|
|
31 |
|
|
|
22 |
|
|
|
40.9 |
% |
|
|
0.0 |
% |
|
|
31 |
|
|
|
22 |
|
|
|
40.9 |
% |
Number of time slots available for sale (2) |
|
|
30,290 |
|
|
|
28,918 |
|
|
|
19,779 |
|
|
|
53.1 |
% |
|
|
4.7 |
% |
|
|
109,455 |
|
|
|
48,570 |
|
|
|
125.4 |
% |
Number of time slots sold (3) |
|
|
9,724 |
|
|
|
8,187 |
|
|
|
4,617 |
|
|
|
110.6 |
% |
|
|
18.8 |
% |
|
|
26,983 |
|
|
|
9,559 |
|
|
|
182.3 |
% |
Utilization rate (4) |
|
|
32.1 |
% |
|
|
28.3 |
% |
|
|
23.3 |
% |
|
|
8.8 |
% |
|
|
3.8 |
% |
|
|
24.7 |
% |
|
|
19.7 |
% |
|
|
5.0 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
2,126 |
|
|
US$ |
2,084 |
|
|
US$ |
3,732 |
|
|
|
-43.0 |
% |
|
|
2.0 |
% |
|
US$ |
2,455 |
|
|
US$ |
4,709 |
|
|
|
-47.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airports in operation |
|
|
40 |
|
|
|
40 |
|
|
|
41 |
|
|
|
-2.4 |
% |
|
|
0.0 |
% |
|
|
40 |
|
|
|
41 |
|
|
|
-2.4 |
% |
Number of time slots available for sale (1) |
|
|
25,629 |
|
|
|
25,629 |
|
|
|
25,668 |
|
|
|
-0.2 |
% |
|
|
0.0 |
% |
|
|
102,322 |
|
|
|
100,624 |
|
|
|
1.7 |
% |
Number of time slots sold (3) |
|
|
4,062 |
|
|
|
5,659 |
|
|
|
5,711 |
|
|
|
-28.9 |
% |
|
|
-28.2 |
% |
|
|
23,911 |
|
|
|
27,223 |
|
|
|
-12.2 |
% |
Utilization rate (4) |
|
|
15.8 |
% |
|
|
22.1 |
% |
|
|
22.2 |
% |
|
|
-6.4 |
% |
|
|
-6.2 |
% |
|
|
23.4 |
% |
|
|
27.1 |
% |
|
|
-3.7 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
1,847 |
|
|
US$ |
1,487 |
|
|
US$ |
1,994 |
|
|
|
-7.4 |
% |
|
|
24.2 |
% |
|
US$ |
1,558 |
|
|
US$ |
1,748 |
|
|
|
-10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital TV screens on airplanes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of airlines in operation |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
9 |
|
|
|
9 |
|
|
|
0.0 |
% |
Number of time slots available for sale (1) |
|
|
450 |
|
|
|
450 |
|
|
|
486 |
|
|
|
-7.4 |
% |
|
|
0.0 |
% |
|
|
1,908 |
|
|
|
1,878 |
|
|
|
1.6 |
% |
Number of time slots sold (3) |
|
|
274 |
|
|
|
213 |
|
|
|
196 |
|
|
|
39.8 |
% |
|
|
28.6 |
% |
|
|
838 |
|
|
|
962 |
|
|
|
-12.9 |
% |
Utilization rate (4) |
|
|
60.9 |
% |
|
|
47.3 |
% |
|
|
40.3 |
% |
|
|
20.6 |
% |
|
|
13.6 |
% |
|
|
43.9 |
% |
|
|
51.2 |
% |
|
|
-7.3 |
% |
Average advertising revenue per time slot sold (5) |
|
US$ |
22,887 |
|
|
US$ |
19,028 |
|
|
US$ |
21,056 |
|
|
|
8.7 |
% |
|
|
20.3 |
% |
|
US$ |
20,384 |
|
|
US$ |
19,992 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Media in airports |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers of locations available for sale (6) |
|
|
864 |
|
|
|
1,006 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
-14.1 |
% |
|
|
3,564 |
|
|
|
N/A |
|
|
|
N/A |
|
Numbers of locations sold (7) |
|
|
358 |
|
|
|
359 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
-0.3 |
% |
|
|
1,271 |
|
|
|
N/A |
|
|
|
N/A |
|
Utilization rate (8) |
|
|
41.4 |
% |
|
|
35.7 |
% |
|
|
N/A |
|
|
|
N/A |
|
|
|
5.7 |
% |
|
|
35.7 |
% |
|
|
N/A |
|
|
|
N/A |
|
Average advertising revenue per location (9) |
|
US$ |
28,532 |
|
|
US$ |
20,344 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
40.2 |
% |
|
US$ |
21,394 |
|
|
|
N/A |
|
|
|
N/A |
|
13
Notes:
|
|
|
(1) |
|
We define a time slot 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. Our airport advertising programs are shown repeatedly on a daily basis during a given
week in one-hour cycles and each hour of programming includes 25 minutes of advertising content,
which allows us to sell a maximum of 50 time slots per week. The number of time slots available for
our digital TV screens 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 we had
operations in each airport and then calculating the sum of all the time slots available for each of
our network airports. The length of our 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 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 we had operations on each airline and then calculating the
sum of all the time slots for each of our network airlines. |
|
(2) |
|
We define a time slot 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. Our standard airport advertising programs are shown repeatedly on a daily basis during a
given week in 10-minute cycles, which allows us 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 standard ones. The number of time slots available for our 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 we had operations in each airport and then
calculating the sum of all the time slots available for each of our 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. |
|
(4) |
|
Utilization rate 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 our revenues derived
from digital TV screens in airports, digital TV screens on airplanes and digital frames in airports
by its own number of time slots sold, respectively. |
|
(6) |
|
We define the number of locations available for sale in traditional media 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 10 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, we first calculate the utilization rates of light boxes and
billboards in such airport 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 boxes and billboards 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 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. |
14
Earnings Conference Call Details
AirMedia will hold a conference call to discuss the fourth quarter 2009 earnings at 8:00 PM U.S.
Eastern Time on March 1, 2010 (5:00 PM U.S. Pacific Time on March 1, 2010; 9:00 AM Beijing/Hong
Kong time on March 2, 2010). AirMedias management team will be on the call to discuss financial
results and operational highlights and answer questions.
Conference Call Dial-in Information
U.S.: +1 866 700 0161
U.K.: +44 207 365 8426
Hong Kong: +852 3002 1672
International: +1 617 213 8832
Pass code: AMCN
A replay of the call will be available for 1 week between 10:00 p.m. on March 1, 2010 and 10:00
p.m. on March 8, 2010, Eastern Time.
Replay Dial-in Information
U.S.: +1 888 286 8010
International: +1 617 801 6888
Pass code: 45528374
Additionally, a live and archived webcast of this call will be available on the Investor Relations
section of AirMedias corporate website at http://ir.airmedia.net.cn.
Use of Non-GAAP Financial Measures
AirMedias management uses non-GAAP financial measures to gain an understanding of AirMedias
comparative operating performance and future prospects. AirMedias non-GAAP financial measures
exclude certain special items, including (1) share-based compensation expenses, and (2)
amortization of acquired intangible assets. Non-GAAP financial measures are used by AirMedias
management in their financial and operating decision-making, because management believes they
reflect AirMedias ongoing business and operating performance in a manner that allows meaningful
period-to-period comparisons. AirMedias management believes that these non-GAAP financial measures
provide useful information to investors and others in understanding and evaluating AirMedias
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 we believe are not indicative of our core operating
results.
The non-GAAP financial measures have limitations. They do not include all items of income and
expense that affect AirMedias 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 AirMedias
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 Income/(Loss) and EPS and non-GAAP
Adjusted Income/(Loss) and EPS set forth at the end of this release.
15
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 TV screens in 40 major
airports, including 29 out of the 30 largest airports in China. AirMedia also operates digital
frames in 32 major airports, including the 15 largest airports in China. In addition, AirMedia
sells advertisements on the routes operated by eight airlines, including the three largest airlines
in China. In selected major airports, AirMedia also operates traditional media platforms, such as
billboards, 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 Sinopecs service stations located throughout
China. AirMedia plans to install its advertising platforms in at least 3,500 service stations in
major cities throughout China by the end of 2011, and in at least 8,000 service stations by the end
of 2014.
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 periodic reports to the
U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., 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 AirMedias beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors
could cause actual results to differ materially from those contained in any forward-looking
statement. Potential risks and uncertainties include, but are not limited to: if advertisers or the
viewing public do not accept, or lose interest in, our air travel advertising network, we may be
unable to generate sufficient cash flow from our operating activities and our prospects and results
of operations could be negatively affected; we derive substantially all of our revenues from the
provision of air travel advertising services, and recent slowdown in the air travel advertising
industry in China may materially and adversely affect our revenues and results of operation; our
strategy of expanding our advertising network by expanding into traditional media and building new
media platforms may not succeed, and our failure to do so could materially reduce the
attractiveness of our network and harm our business, reputation and results of operations; if our
customers reduce their advertising spending due to an economic downturn in China and/or elsewhere
or for any other reason, our revenues and results of operations may be materially and adversely
affected; we face risks related to health epidemics such as the H1N1 flu, which could materially
and adversely affect air travel and result in reduced demand for our advertising services or
disrupt our operations; if we are unable to retain existing concession rights
contracts or obtain new concession rights contracts on commercially advantageous terms that allow
us to operate our advertising platforms, we may be unable to maintain or expand our network
coverage and our business and prospects may be harmed; a significant portion of our revenues has
been derived from the five largest airports and three largest airlines in China, and if any of
these airports or airlines experiences a material business disruption, our ability to generate
revenues and our results of operations would be materially and adversely affected; our limited
operating history makes it difficult to evaluate our future prospects and results of operations;
and other risks outlined in AirMedias 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.
16
Investor Contact:
Raymond Huang
Investor Relations Director
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
Caroline Straathof
IR Inside
Tel: +31-6-54624301
Email: info@irinside.com
17
AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
as adjusted(1) |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
|
123,754 |
|
|
|
161,534 |
|
Restricted cash |
|
|
1,431 |
|
|
|
|
|
Short-term investments |
|
|
586 |
|
|
|
|
|
Accounts receivable, net |
|
|
49,358 |
|
|
|
38,386 |
|
Prepaid concession fees |
|
|
15,425 |
|
|
|
32,706 |
|
Amount due from related party |
|
|
5,991 |
|
|
|
|
|
Other current assets |
|
|
4,069 |
|
|
|
7,830 |
|
Deferred tax assets current |
|
|
1,358 |
|
|
|
380 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
201,972 |
|
|
|
240,836 |
|
|
|
|
|
|
|
|
Acquired intangible assets, net |
|
|
11,141 |
|
|
|
9,027 |
|
Property and equipment, net |
|
|
78,831 |
|
|
|
62,443 |
|
Long-term deposits |
|
|
15,914 |
|
|
|
14,724 |
|
Long-term investments |
|
|
1,984 |
|
|
|
1,099 |
|
Deferred tax assets non-current |
|
|
4,726 |
|
|
|
1,762 |
|
Goodwill |
|
|
9,087 |
|
|
|
|
|
Total Assets |
|
|
323,655 |
|
|
|
329,891 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
30,680 |
|
|
|
15,696 |
|
Accrued expenses and other current liabilities |
|
|
7,136 |
|
|
|
5,664 |
|
Deferred revenue |
|
|
8,941 |
|
|
|
2,929 |
|
Income tax payable |
|
|
52 |
|
|
|
852 |
|
Amounts due to related parties |
|
|
408 |
|
|
|
408 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
47,217 |
|
|
|
25,549 |
|
|
|
|
|
|
|
|
Deferred tax liability non-current |
|
|
3,155 |
|
|
|
2,659 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
50,372 |
|
|
|
28,208 |
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
132 |
|
|
|
134 |
|
Additional paid-in capital |
|
|
268,542 |
|
|
|
268,881 |
|
Statutory reserve |
|
|
6,912 |
|
|
|
5,593 |
|
Accumulated (deficit)/earnings |
|
|
(15,484 |
) |
|
|
16,070 |
|
Accumulated other comprehensive income |
|
|
9,947 |
|
|
|
10,054 |
|
|
|
|
|
|
|
|
Total AirMedia Group Inc.s shareholders equity |
|
|
270,049 |
|
|
|
300,732 |
|
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
3,234 |
|
|
|
951 |
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
273,283 |
|
|
|
301,683 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders Equity |
|
|
323,655 |
|
|
|
329,891 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Amount in relation to noncontrolling interest, formerly named minority interest, as of December
31, 2008 is reclassified in accordance with ASC 810 (formerly FASB Statement No. 160,
Noncontrolling Interest), which was adopted by the Company on January 1, 2009. |
18
AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2009 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
as adjusted(1) |
|
|
|
|
|
as adjusted(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
45,199 |
|
|
|
37,726 |
|
|
|
40,462 |
|
|
|
152,530 |
|
|
|
125,540 |
|
Business tax and other sales tax |
|
|
(943 |
) |
|
|
(552 |
) |
|
|
(2,272 |
) |
|
|
(3,102 |
) |
|
|
(6,107 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
44,256 |
|
|
|
37,174 |
|
|
|
38,190 |
|
|
|
149,428 |
|
|
|
119,433 |
|
Cost of revenues |
|
|
47,070 |
|
|
|
37,802 |
|
|
|
23,280 |
|
|
|
147,541 |
|
|
|
70,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit/(loss) |
|
|
(2,814 |
) |
|
|
(628 |
) |
|
|
14,910 |
|
|
|
1,887 |
|
|
|
48,438 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing * |
|
|
4,121 |
|
|
|
3,607 |
|
|
|
3,341 |
|
|
|
13,439 |
|
|
|
10,171 |
|
General and administrative * |
|
|
8,274 |
|
|
|
7,034 |
|
|
|
5,195 |
|
|
|
25,597 |
|
|
|
14,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
12,395 |
|
|
|
10,641 |
|
|
|
8,536 |
|
|
|
39,036 |
|
|
|
24,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from operations |
|
|
(15,209 |
) |
|
|
(11,269 |
) |
|
|
6,374 |
|
|
|
(37,149 |
) |
|
|
23,893 |
|
Interest income |
|
|
521 |
|
|
|
351 |
|
|
|
1,216 |
|
|
|
2,025 |
|
|
|
5,379 |
|
Other income, net |
|
|
283 |
|
|
|
582 |
|
|
|
438 |
|
|
|
1,239 |
|
|
|
1,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
|
(14,405 |
) |
|
|
(10,336 |
) |
|
|
8,028 |
|
|
|
(33,885 |
) |
|
|
30,407 |
|
Income tax expense/(benefit) |
|
|
(2,046 |
) |
|
|
(875 |
) |
|
|
(352 |
) |
|
|
(3,697 |
) |
|
|
(498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) before net
income/(loss) of equity
accounting
investment |
|
|
(12,359 |
) |
|
|
(9,461 |
) |
|
|
8,380 |
|
|
|
(30,188 |
) |
|
|
30,905 |
|
Net income/(loss) of equity
accounting investment |
|
|
32 |
|
|
|
52 |
|
|
|
23 |
|
|
|
164 |
|
|
|
(325 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
|
(12,327 |
) |
|
|
(9,409 |
) |
|
|
8,403 |
|
|
|
(30,024 |
) |
|
|
30,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income/(loss)
attributable to noncontrolling
interest |
|
|
84 |
|
|
|
168 |
|
|
|
275 |
|
|
|
211 |
|
|
|
382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable
to AirMedia Group Inc.s
shareholders |
|
|
(12,411 |
) |
|
|
(9,577 |
) |
|
|
8,128 |
|
|
|
(30,235 |
) |
|
|
30,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable
to AirMedia Group Inc.s
shareholders per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
0.06 |
|
|
|
(0.23 |
) |
|
|
0.23 |
|
Diluted |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
0.06 |
|
|
|
(0.23 |
) |
|
|
0.22 |
|
Net income/(loss) attributable
to AirMedia Group Inc.s
shareholders per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.19 |
) |
|
|
(0.15 |
) |
|
|
0.12 |
|
|
|
(0.46 |
) |
|
|
0.45 |
|
Diluted |
|
|
(0.19 |
) |
|
|
(0.15 |
) |
|
|
0.12 |
|
|
|
(0.46 |
) |
|
|
0.44 |
|
Weighted average ordinary shares
outstanding used in
computing net income/(loss) per
ordinary share basic |
|
|
131,107,092 |
|
|
|
130,833,410 |
|
|
|
133,820,539 |
|
|
|
131,320,730 |
|
|
|
133,603,419 |
|
Weighted average ordinary shares
outstanding used in
computing net income/(loss) per
ordinary share diluted |
|
|
131,107,092 |
|
|
|
130,833,410 |
|
|
|
134,608,724 |
|
|
|
131,320,730 |
|
|
|
137,782,135 |
|
* Share-based compensation
charges included are as follow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
523 |
|
|
|
499 |
|
|
|
407 |
|
|
|
1,540 |
|
|
|
1,158 |
|
General and administrative |
|
|
1,271 |
|
|
|
1,237 |
|
|
|
1,312 |
|
|
|
4,226 |
|
|
|
3,805 |
|
|
|
|
(1) |
|
Amount in relation to noncontrolling interest, formerly named minority interest, for the
three-month period ended December 31, 2008 is reclassified in accordance with ASC 810 (formerly
FASB Statement No. 160, Noncontrolling Interest), which was adopted by the Company on January 1,
2009. |
19
AirMedia Group Inc.
RECONCILIATION OF GAAP NET INCOME (LOSS) AND EPS TO NON-GAAP
ADJUSTED NET INCOME (LOSS) AND EPS
(In U.S. dollars in thousands, except share and ADS related data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2009 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income/(loss) attributable to AirMedia. Group
Inc.s
shareholders |
|
|
(12,411 |
) |
|
|
(9,577 |
) |
|
|
8,128 |
|
|
|
(30,235 |
) |
|
|
30,198 |
|
Amortization of acquired intangible assets |
|
|
570 |
|
|
|
834 |
|
|
|
605 |
|
|
|
2,613 |
|
|
|
1,170 |
|
Share-based compensation |
|
|
1,794 |
|
|
|
1,736 |
|
|
|
1,719 |
|
|
|
5,766 |
|
|
|
4,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) attributable to AirMedia. Group
Inc.s
shareholders (non-GAAP) |
|
|
(10,047 |
) |
|
|
(7,007 |
) |
|
|
10,452 |
|
|
|
(21,856 |
) |
|
|
36,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) attributable to AirMedia. Group
Inc.s
shareholders per share (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
0.08 |
|
|
|
(0.17 |
) |
|
|
0.27 |
|
Diluted |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
0.08 |
|
|
|
(0.17 |
) |
|
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) attributable to AirMedia. Group
Inc.s
shareholders per ADS (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.15 |
) |
|
|
(0.11 |
) |
|
|
0.16 |
|
|
|
(0.33 |
) |
|
|
0.54 |
|
Diluted |
|
|
(0.15 |
) |
|
|
(0.11 |
) |
|
|
0.16 |
|
|
|
(0.33 |
) |
|
|
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing adjusted basic net income/(loss)
attributable
to AirMedia. Group Inc.s shareholders per share (non-GAAP) |
|
|
131,107,092 |
|
|
|
130,833,410 |
|
|
|
133,820,539 |
|
|
|
131,320,730 |
|
|
|
133,603,419 |
|
Shares used in computing adjusted diluted net
income/(loss) attributable
to AirMedia. Group Inc.s shareholders per share (non-GAAP) |
|
|
131,107,092 |
|
|
|
130,833,410 |
|
|
|
134,608,724 |
|
|
|
131,320,730 |
|
|
|
137,782,135 |
|
Note: The Non-GAAP adjusted net income per share and per ADS are computed using Non-GAAP net
adjusted 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 share-based compensation plan.
20
AirMedia Group Inc.
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP
ADJUSTED OPERATING EXPENSES
(In U.S. dollars in thousands except for percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2009 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
|
|
12,395 |
|
|
|
10,641 |
|
|
|
8,536 |
|
|
|
39,036 |
|
|
|
24,545 |
|
Amortization of acquired intangible assets |
|
|
570 |
|
|
|
834 |
|
|
|
605 |
|
|
|
2,613 |
|
|
|
1,170 |
|
Share-based compensation |
|
|
1,794 |
|
|
|
1,736 |
|
|
|
1,719 |
|
|
|
5,766 |
|
|
|
4,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (non-GAAP) |
|
|
10,031 |
|
|
|
8,071 |
|
|
|
6,212 |
|
|
|
30,657 |
|
|
|
18,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses as a
percentage of net revenues
(non-GAAP) |
|
|
22.7 |
% |
|
|
21.7 |
% |
|
|
16.3 |
% |
|
|
20.5 |
% |
|
|
15.4 |
% |
AirMedia Group Inc.
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS TO NON-GAAP
ADJUSTED INCOME (LOSS) FROM OPERATIONS
(In U.S. dollars in thousands except for percentage)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2009 |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from operations |
|
|
(15,209 |
) |
|
|
(11,269 |
) |
|
|
6,374 |
|
|
|
(37,149 |
) |
|
|
23,893 |
|
Amortization of acquired intangible assets |
|
|
570 |
|
|
|
834 |
|
|
|
605 |
|
|
|
2,613 |
|
|
|
1,170 |
|
Share-based compensation |
|
|
1,794 |
|
|
|
1,736 |
|
|
|
1,719 |
|
|
|
5,766 |
|
|
|
4,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income/(loss) from operations
(non-GAAP) |
|
|
(12,845 |
) |
|
|
(8,699 |
) |
|
|
8,698 |
|
|
|
(28,770 |
) |
|
|
30,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating margin (non-GAAP) |
|
|
-29.0 |
% |
|
|
-23.4 |
% |
|
|
22.8 |
% |
|
|
-19.3 |
% |
|
|
25.1 |
% |
21