Tv For Sale

AirMedia Announces Unaudited First Quarter 2013 Financial Results.

BEIJING
  or  , city (1994 est. urban pop. 6,093,300; 1994 est. total pop. 7,240,700), capital of the People’s Republic of China. It is in central Hebei prov.
, May 13, 2013 /PRNewswire/ — AirMedia Group Inc.
(“AirMedia” or the “Company”)(Nasdaq:
AMCN

), a
leading operator of out-of-home advertising platforms in China targeting
mid-to-high-end consumers, today announced its unaudited financial
results for the first quarter ended March 31, 2013.

First Quarter 2013 Financial and Business Highlights

* Total revenues decreased by 4.4% year-over-year and by 23.3%
quarter-over-quarter to US$64.5 million. The year-over-year decrease was
partially due to China’s replacement of regular business tax with

Value Added Tax
 n (BRIT) → )

 n (Brit
 (”
VAT

See value-added tax (VAT).
“) in Beijing, one of AirMedia’s key
regions of operations.

* Net revenues decreased by 3.8% year-over-year and by 23.0%
quarter-over-quarter to US$63.6 million.

* Net loss
attributable

 to AirMedia’s shareholders was US$3.6
million, compared to net loss attributable to AirMedia’s
shareholders of US$7.3 million in the same period one year ago. Basic
and
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 net loss attributable to AirMedia’s shareholders per
American
Depositary

 Share (“ADS”) were both US$0.06.

* Adjusted net loss attributable to AirMedia’s shareholders
(non-GAAP), which is net loss attributable to AirMedia’s
shareholders excluding share-based compensation expenses, amortization
of acquired intangible assets,
impairment

 of goodwill and impairment of
intangible assets, was US$3.1 million. Adjusted basic net loss
attributable to AirMedia’s shareholders per ADS (non-GAAP), which
is adjusted net loss attributable to AirMedia’s shareholders
(non-GAAP) divided by the number of ADSs outstanding, was US$0.05.
Adjusted diluted net loss attributable to AirMedia’s shareholders
per ADS (non-GAAP), which is adjusted net loss attributable to
AirMedia’s shareholders (non-GAAP) divided by the number of ADSs
outstanding as adjusted for
dilution

 after taking into account option
grants under the Company’s current Share Incentive Plan, was
US$0.05.

“We have been focusing on turning around our unprofitable
product lines. As we announced today in a separate press release, our
gas station media network received an investment of
RMB

RMB Rolf Maier Bode
RMB Ren Min Bi  
640 million
(US$104.0 million) from Elec-Tech International Co., Ltd. We intend to
use the investment to install LED screens in our gas stations. We are
excited about the progress we’ve made in further developing our gas
station media network, and we believe we are heading in the right
direction to turn around this loss-making product line. We believe LED
screens, which are larger and more eye-catching, will be a suitable
media for gas stations because they will substantially increase the
advertising capacity of our gas station media network and dramatically
reduce our operational costs in this media network,” commented Mr.

Herman

 Guo, chairman and chief executive officer of AirMedia.

“We made improvements in cost control in the first quarter of
2013. Cost of revenues for the first quarter of 2013 decreased by 4.3%
year-over-year and by 8.1% quarter-over-quarter. While continuing to
increase our revenues, eliminating the losses from our unprofitable
product lines is equally important. The valuation of the recent
investment in our gas station media network by Elec-Tech International
Co., Ltd.
affirmed
  
v. af·firmed, af·firm·ing, af·firms

v.tr.
1. To declare positively or firmly; maintain to be true.

2. To support or uphold the validity of; confirm.

v.intr.
 the unique value and promising prospect of our gas
station media network,” Mr. Henry Ho, AirMedia’s chief
financial officer, commented.

First Quarter 20 13 Financial Results

R evenues

Total revenues by product line (numbers in US$ 000’s except for
percentages):

Total revenues for the first quarter of 2013 reached US$64.5
million, representing a year-over-year decrease of 4.4% from US$67.5
million in the same period one year ago and a quarter-over-quarter
decrease of 23.3% from US$84.2 million in the previous quarter. The
year-over-year decrease was primarily due to decreases in revenues from
traditional media in airports, digital TV-screens on airplanes, other
media and gas station media network, as well as China’s replacement
of regular business tax with VAT in Beijing, one of AirMedia’s key
regions of operations. The decrease was partially offset by increases in
revenues from digital frames in airports and digital TV screens in
airports. The quarter-over-quarter decrease in total revenues was
primarily due to decreases in revenues from all of the Company’s
products lines.

Revenues from digital frames in airports

Revenues from digital frames in airports for the first quarter of
2013 increased by 5.0% year-over-year and decreased by 17.8%
quarter-over-quarter to US$33.5 million. The year-over-year increase was
primarily due to additional revenues from the rapidly growing product
line of mega-size LED screens, which added operations in additional
airports. The quarter-over-quarter decrease was primarily due to a
seasonally weak quarter in the first quarter of 2013.

Revenues from digital TV screens in airports

Revenues from digital TV screens in airports for the first quarter
of 2013 increased by 26.9% year-over-year and decreased by 49.1%
quarter-over-quarter to US$2.8 million. The year-over-year increase was
primarily due to the Company’s continued sales efforts. The
quarter-over-quarter decrease was primarily due to a seasonally weak
quarter in the first quarter of 2013.

Revenues from digital TV screens on airplanes

Due to disagreements over renewal fees, AirMedia decided not to
renew its
concession

 rights contract for the digital TV screens on Air
China’s planes. In 2013, in order to control its concession cost,
AirMedia changed its business cooperation model with Air China so that
instead of holding the exclusive concession rights for Air China,
AirMedia now finds potential advertisers before purchasing placing right
from Air China for specific advertising time
slots

. Under this new
arrangement, AirMedia does not pay extra concession fees to Air China
for unsold time slots. AirMedia believes it is capable of convincing
most of the original advertisers that previously advertised on Air
China’s digital TV screens to
reallocate

 their advertising budgets
to AirMedia’s other product lines. AirMedia expects that the amount
of revenue loss caused by not
renewing
  
v. re·newed, re·new·ing, re·news

v.tr.
1. To make new or as if new again; restore:

2.
 its concession rights contract
with Air China would be smaller than the concession fees it would need
to pay to Air China under a
renewed
  
v. re·newed, re·new·ing, re·news

v.tr.
1. To make new or as if new again; restore:

2.
 concession rights contract. AirMedia
believes that it would benefit from choosing not to renew the Air China
concession rights contract for the time being and expects the
non-renewal to help AirMedia control increase of concession fees in the
long term.

Revenues from digital TV screens on airplanes for the first quarter
of 2013 decreased by 24.5% year-over-year and by 51.9%
quarter-over-quarter to US$3.8 million. The year-over-year decrease was
primarily due to the decrease in revenues of digital TV screens on Air
China’s airplanes as AirMedia chose not to renew the concession
rights contract with Air China. The quarter-over-quarter decrease was
primarily due to a seasonally weak quarter in the first quarter of 2013
and the decrease in revenues of digital TV screens on Air China’s
airplanes as AirMedia chose not to renew the concession rights contract
with Air China.

Revenues from traditional media in airports

Revenues from traditional media in airports for the first quarter of
2013 decreased by 13.2% year-over-year and by 9.0% quarter-over-quarter
to US$18.9 million. The year-over-year decrease was primarily due to a
reduction in the number of locations for sale as a result of a delay in
a scheduled media format upgrade, and the
expiration

 of the concession
rights contract of most of AirMedia’s traditional media in
Shenzhen
 , city (1994 est. pop. 695,600), S Guangdong prov., China, on the South China Sea, N of Hong Kong. Designated a special economic zone in 1979, the city’s spectacular economic growth led China to create over a dozen more
 Baoan International Airport, which AirMedia chose not to renew. AirMedia
was upgrading 18 light boxes at prime locations inside
Beijing Capital
International Airport

; Traditional Chinese:
 to a better advertising format, but the upgrade is
behind schedule. The quarter-over-quarter decrease was primarily due to
a seasonally weak quarter in the first quarter of 2013 and the
expiration of the concession rights contract of most of AirMedia’s
traditional media in Shenzhen Baoan International Airport, which
AirMedia chose not to renew.

Revenues from the gas station media network

Revenues from the gas station media network for the first quarter of
2013 decreased by 15.2% year-over-year and by 41.4% quarter-over-quarter
to US$2.8 million. The year-over-year decrease was primarily due to the
fact that some advertisers expressed interest in reserving their budgets
for the LED screens that AirMedia plans to install in its gas stations,
as well as China’s replacement of regular business tax with VAT in
Beijing. The quarter-over-quarter decrease was primarily due to a
seasonally weak quarter in the first quarter of 2013.

Revenues from other media

Revenues from other media were primarily revenues from unipole signs
and other outdoors media. Revenues from other media for the first
quarter of 2013 decreased by 37.3% year-over-year and by 50.8%
quarter-over-quarter to US$1.2 million. The year-over-year and
quarter-over-quarter decreases were primarily due to expiration of the
contracts for some locations in
November
 see month.
 and December 2012. AirMedia
renewed some of these contracts and resumed operations of these
locations in
February
 see month.
 2013, but these locations did not operate for the
entire first quarter of 2013.

Business tax and other
sales tax
 levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government.
 

Business tax and other sales tax for the first quarter of 2013 were
US$935,000, compared to US$1.4 million in the same period one year ago
and US$1.5 million in the previous quarter. The year-over-year decrease
was due to China’s replacement of regular business tax with the VAT
in Beijing, one of AirMedia’s key regions of operations. Prior to

September
 see month.
 1, 2012, revenues were recorded gross of business tax and
subsequent to the change, revenues are recorded net of VAT thereafter.
Revenues from most of the Company’s product lines booked in total
revenues were already net revenues after deducting VAT in the first
quarter of 2013. The majority of the Company’s business tax and
other sales tax, amounting to US$935,000 in the first quarter of 2013,
were other sales tax. The quarter-over-quarter decrease was primarily
due to the decrease in total revenues.

Net revenues

Net revenues for the first quarter of 2013 reached US$63.6 million,
representing a year-over-year decrease of 3.8% from US$66.1 million in
the same period one year ago and a quarter-over-quarter decrease of
23.0% from US$82.6 million in the previous quarter.

Cost of Revenues

Cost of revenues for the first quarter of 2013 was US$60.1 million,
representing a year-over-year decrease of 4.3% from 62.8 million in the
same period one year ago and a quarter-over-quarter decrease of 8.1%
from US$65.4 million in the previous quarter. The year-over-year and
quarter-over-quarter decreases were primarily due to lower agency fees
for third-party advertising agencies, which were partially offset by
higher concession fees. Cost of revenues as a percentage of net revenues
in the first quarter of 2013 was 94.5%, down from 95.0% in the same
period one year ago and up from 79.1% 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 first quarter of 2013 increased by 6.2%
year-over-year and by 2.3% quarter-over-quarter to US$46.2 million. The
year-over-year and quarter-over-quarter increases were primarily due to
newly signed or renewed concession rights contracts during the period.
Concession fees as a percentage of net revenues in the first quarter of
2013 was 72.6%, increasing from 65.7% in the same period one year ago
and from 54.6% in the previous quarter. The year-over-year and
quarter-over-quarter increases of concession fees as a percentage of net
revenues were primarily due to the fact that net revenues decreased
while concession fees increased due to newly signed or renewed
concession rights contracts.

G ross Profit

Gross profit for the first quarter of 2013 increased by 5.2%
year-over-year and decreased by 79.8% quarter-over-quarter to US$3.5
million.

Gross profit as a percentage of net revenues for the first quarter
of 2013 was 5.5%, compared to 5.0% in the same period one year ago and
20.9% in the previous quarter. The year-over-year increase in gross
profit as a percentage of net revenues was due to the fact that cost of
revenues decreased faster than net revenues. The quarter-over-quarter
decrease in gross profit as a percentage of net revenues was due to the
fact that net revenues decreased faster than cost of revenues.

Operating Expenses

 

Operating expenses (numbers in US$ 000’s except for
percentages):

Total operating expenses for the first quarter of 2013 were US$9.1
million, representing a year-over-year decrease of 10.9% from US$10.2
million in the same period one year ago and a quarter-over-quarter
decrease of 15.1% from US$10.7 million in the previous quarter.

Share-based compensation expenses included in the total operating
expenses for the first quarter of 2013 were US$280,000, compared to
share-based compensation expenses of US$992,000 in the same period one
year ago and share-based compensation expenses of US$804,000 in the
previous quarter. The year-over-year decrease in share-based
compensation expenses was primarily due to the ending of the
vesting

 period of stock options granted on
July
 see month.
 10, 2009. The
quarter-over-quarter decreases in share-based compensation expenses were
primarily due to the fact that one-time share-based compensation
expenses were incurred in the fourth quarter of 2012 as a result of the
extension of the
expiration date

 for certain stock option holders to
exercise their
vested
 adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal’s pension rights are now vested. (See: vest, vested remainder)
 stock options.

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$8.6
million for the first quarter of 2013, representing a year-over-year
increase of 3.7% from US$8.3 million in the same period one year ago and
a quarter-over-quarter decrease of 11.3% from US$9.7 million in the
previous quarter. Adjusted operating expenses as a percentage of net
revenues (non-GAAP), which is calculated by dividing adjusted operating
expenses (non-GAAP) by net revenues, was 13.6% in the first quarter of
2013, compared to 12.6% in the same period one year ago and 11.8% in the
previous quarter.

Please refer to the attached table captioned “Reconciliation of

GAAP

See generally accepted accounting principles (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 first quarter of 2013 were
US$4.2 million. This represented a year-over-year increase of 3.4% from
US$4.1 million and a quarter-over-quarter decrease of 20.2% from US$5.3
million. The year-over-year increase was primarily due to higher
expenses related to the Company’s direct sales force and higher
travel expenses. The quarter-over-quarter decrease was primarily due to
lower sales commissions for the Company’s direct sales force.

General and administrative expenses for the first quarter of 2013
were US$4.9 million, including share-based compensation expenses of
US$280,000. This represented a year-over-year decrease of 20.4% from
US$6.1 million in the same period one year ago and a
quarter-over-quarter decrease of 10.2% from US$5.4 million in the
previous quarter. The year-over-year decrease was primarily due to lower
amortization of acquired intangible assets, lower share-based
compensation expenses, lower professional fees, and lower salary
expenses, which were partially offset by higher bad-debt provision. The
quarter-over-quarter decrease was primarily due to lower share-based
compensation expenses and lower salary expenses, which were partially
offset by higher bad-debt provision.

Loss/Income from Operations

Loss from operations for the first quarter of 2013 was US$5.6
million, compared to loss from operations of US$6.9 million in the same
period one year ago and income from operations of US$6.5 million in the
previous quarter. Loss from operations as a percentage of net revenues
for the first quarter of 2013 was negative 8.8%, compared to negative
10.4% in the same period one year ago and 7.9% in the previous
quarter.

Adjusted loss 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$5.1
million for the first quarter of 2013, compared to adjusted loss from
operations (non-GAAP) of US$5.0 million in the same period one year ago
and adjusted income from operations (non-GAAP) of US$7.5 million 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 negative 8.1% for the first quarter of 2013,
compared to negative 7.5% in the same period one year ago and 9.1% in
the previous quarter.

Please refer to the attached table captioned “Reconciliation of
GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss)
from Operations” for a reconciliation of income (loss) from
operations under U.S. GAAP to adjusted income (loss) from operations
(non-GAAP).

Income Tax Benefits/Expenses

Income tax benefits for the first quarter of 2013 were US$1.0
million, compared to income tax expenses of US$1.9 million in the same
period one year ago and income tax expenses of US$4.2 million in the
previous quarter.

Net Loss/Income Attributable to AirMedia’s Shareholders

Net loss attributable to AirMedia’s shareholders for the first
quarter of 2013 was US$3.6 million, compared to net loss attributable to
AirMedia’s shareholders of US$7.3 million in the same period one
year ago and net income attributable to AirMedia’s shareholders of
US$3.4 million in the previous quarter. The basic net loss attributable
to AirMedia’s shareholders per ADS for the first quarter of 2013
was US$0.06, compared to basic net loss attributable to AirMedia’s
shareholders per ADS of US$0.12 in the same period one year ago and
basic net income attributable to AirMedia’s shareholders per ADS of
US$0.05 in the previous quarter. The diluted net loss attributable to
AirMedia’s shareholders per ADS for the first quarter of 2013 was
US$0.06, compared to diluted net loss attributable to AirMedia’s
shareholders per ADS of US$0.12 in the same period one year ago and
diluted net income attributable to AirMedia’s shareholders per ADS
of US$0.05 in the previous quarter.

Adjusted net loss attributable to AirMedia’s shareholders
(non-GAAP) was US$3.1 million for the first quarter of 2013, compared to
adjusted net loss attributable to AirMedia’s shareholders
(non-GAAP) of US$5.4 million in the same period one year ago and
adjusted net income attributable to AirMedia’s shareholders
(non-GAAP) of US$4.4 million in the previous quarter. Adjusted basic net
loss attributable to AirMedia’s shareholders per ADS (non-GAAP) was
US$0.05 for the first quarter of 2013, compared to adjusted basic net
loss attributable to AirMedia’s shareholders per ADS (non-GAAP) of
US$0.09 in the same period one year ago and adjusted basic net income
attributable to AirMedia’s shareholders per ADS (non-GAAP) of
US$0.07 in the previous quarter. Adjusted diluted net loss attributable
to AirMedia’s shareholders per ADS (non-GAAP) was US$0.05 for the
first quarter of 2013, compared to adjusted diluted net loss
attributable to AirMedia’s shareholders per ADS (non-GAAP) of
US$0.09 in the same period one year ago and adjusted diluted net income
attributable to AirMedia’s shareholders per ADS (non-GAAP) of
US$0.07 in the previous quarter.

Please refer to the attached table captioned “Reconciliation of
GAAP Net Income (Loss) and
EPS

 to Non-GAAP Adjusted Net Income 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 attributable to AirMedia’s shareholders
(non-GAAP) and adjusted basic and diluted net income attributable to
AirMedia’s shareholders per ADS (non-GAAP).

C ash, Restricted Cash and Short-term Investments

Cash, restricted cash and short-term investments totaled US$121.0
million as of March 31, 2013, compared to US$126.3 million as of
December 31, 2012. The decrease in cash, restricted cash and short-term
investments from December 31, 2012 was primarily due to negative
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
  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
 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

n See expiration date.
 of the share repurchase program to March 20,
2014 from March 20, 2013. As of May 12, 2013, AirMedia had repurchased
an aggregate of 5,676,385 ADSs on the open market for a total
consideration of US$15.9 million.

O ther Recent Developments

On May 13, 2013, AirMedia’s board of directors approved an
investment agreement between several entities
affiliated
  
v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates

v.tr.
1. To adopt or accept as a member, subordinate associate, or branch:
 with AirMedia,
including Beijing GreatView Media Advertising Co., Ltd. (“GreatView
Media”), the primary operating entity of AirMedia’s gas
station media network, its current shareholders, and Elec-Tech
International Co., Ltd. (“Elec-Tech”)(
Shenzhen Stock Exchange

 code: 002005). Pursuant to the investment agreement, Elec-Tech will
invest RMB640 million (US$104.0 million) to purchase ordinary shares
representing
approximately
  
adj.
1. Almost exact or correct:

2.
 21.27% of the equity interest of GreatView
Media. After the completion of the transaction, AirMedia will indirectly
control 61.41% of the equity interest of GreatView Media. GreatView
Media’s current shareholders undertook to use the full amount of
Elec-Tech’s investment to purchase LED screens from Elec-Tech or
its subsidiaries. The investment is subject to the approval of
Elec-Tech’s shareholders.

On April 24, 2013, AirMedia commenced operations of 20 sets of
digital TV screens and TV-attached digital frames at newly opened
Section D of Terminal 3 of Beijing Capital International Airport.

On April 22, 2013, AirMedia commenced operations of two mega-size
LED screens at the arrival aisle of
Xi’an
  or  , city (1994 est. pop. 2,114,900), capital of Shaanxi prov., China, in the Wei River valley.
 Xianyang International
Airport (“Xi’an Airport”) in
Shaanxi
  or   [west of the mountain passes], province (1994 est. pop. 34,010,000), c.76,000 sq mi (196,840 sq km), N central China. Xi’an is the capital.
 province. In
addition to these two mega-size LED screens, AirMedia operates another
mega-size LED screen in the departure passage of Xi’an Airport.

On April 19, 2013, AirMedia commenced operations of 12
stand-alone

 digital frames at the
baggage claim

 areas in
Sanya

 
Fenghuang

 International Airport in Hainan province.

On April 18, 2013, AirMedia commenced operations of 12 stand-alone
digital frames at the baggage claim areas in Xi’an Airport.

On March 15, 2013, AirMedia commenced operations of 14 stand-alone
digital frames at
Guangzhou Baiyun International Airport
; Traditional Chinese:
.

Business Outlook

AirMedia currently expects its net revenues for the second quarter
of 2013 to range from US$63.0 million to US$65.0 million, representing a
year-over-year decrease of 7.5% to 4.6% from the same period in 2012 and
a quarter-over-quarter decrease of 2.4% to a quarter-over-quarter
increase of 0.7% from the previous quarter.

AirMedia currently expects its concession fees to be approximately
US$46.0 million in the second quarter of 2013, which is relatively
unchanged from the previous quarter.

The above forecast reflects AirMedia’s current and preliminary
view and is therefore subject to change. Please refer to the
Safe Harbor

 Statement below for the factors that could cause actual results to
differ materially from those contained in any forward-looking
statement.

Summary of Selected Operating Data

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
  
v. de·rived, de·riv·ing, de·rives

v.tr.
1. To obtain or receive from a source.

2.
 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
 or  , city (1994 est. pop. 449,700), SE Zhejiang prov., SE China. It is a small deep-sea port on the Ou River 12 mi (19 km) from the East China Sea and a major trade center for an area
 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 first quarter
2013 earnings at 8:00 PM U.S. Eastern Time on May 13, 2013 (5:00 PM U.S.
Pacific Time on May 13, 2013; 8:00 AM Beijing/Hong
Kong

 time on May 14,
2013). AirMedia’s management team will be on the call to discuss
financial results and operational highlights and answer questions.

Conference Call Dial-in Information

U.S.: +1 866 519 4004 U.K.: 08082346646
Hong Kong
 , Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.
: +852 800 930 346
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 May 13, 2013 and 11:59 p.m. on May 20, 2013, Eastern Time.

Replay Dial-in Information

U.S.: +1 855 452 5696 International: +1 646 254 3697 Pass code:
68638854

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
 see mood.
 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
33 major airports and digital TV screens in 33 major airports, including
most of the 30 largest airports in China. In addition, AirMedia sells
advertisements on the routes operated by seven airlines, including the
four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and light
boxes, and other digital media, such as mega 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

A decline in security prices or economic activity following a period of rising or stable prices or activity.
 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
 /dis·rup·tion/ () a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process.
, 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
 town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town.
 
Huang
) is a Chinese surname. While Huang is the pinyin romanisation of the word, it may also be romanised as Wong, Vong, Bong, Ng, Uy, Wee, Oi, Oei or Ooi, Ong, Hwang, or Ung due to pronunciations of the word in
 Senior Director of Investor Relations AirMedia Group
Inc. Tel: +86-10-8460-8678 Email: ir@airmedia.net.cn

SOURCE AirMedia Group Inc.