Return to article
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
June 30, December 31,
ASSETS 2004 2003
----------- -----------
(unaudited)
Current assets:
Cash and cash equivalents $ 156,306 $ 93,732
Restricted cash 23,502 22,485
Short-term investments 206,360 151,736
Accounts receivable, net of allowance for
doubtful accounts of $1,038 and $794
at June 30, 2004 and December 31, 2003,
respectively 23,733 10,782
Prepaid expenses and other current assets 6,156 4,778
----------- -----------
Total current assets 416,057 283,513
Property and equipment, net 15,474 16,524
Intangible assets, net 13,570 7,053
Goodwill 32,837 8,779
Other assets 16,674 21,915
----------- -----------
Total assets $ 494,612 $ 337,784
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 49,380 $ 25,061
Accrued expenses 22,680 21,031
Deferred merchant bookings 8,867
Other current liabilities 3,340 3,522
----------- -----------
Total current liabilities 84,267 49,614
Other long-term liabilities 1,763 1,069
Minority interest 691 -
Long-term debt 223,348 124,524
----------- -----------
Total liabilities 310,069 175,207
----------- -----------
SERIES B MANDATORILY REDEEMABLE PREFERRED
STOCK 13,470 13,470
Stockholders' equity
Common stock 315 306
Treasury stock (350,628) (350,628)
Additional paid-in capital 2,062,613 2,055,607
Deferred compensation (1,516) (1,408)
Accumulated deficit (1,539,712) (1,555,444)
Accumulated other comprehensive income 1 674
----------- -----------
Total stockholders' equity 171,073 149,107
----------- -----------
Total liabilities and stockholders'
equity $ 494,612 $ 337,784
=========== ===========
priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
-------- -------- -------- --------
Merchant revenues $249,860 $236,943 $466,871 $435,551
Agency revenues 8,747 1,476 15,195 2,481
Other revenues 782 1,147 1,454 2,021
-------- -------- -------- --------
Total revenues 259,389 239,566 483,520 440,053
Cost of merchant revenues 205,610 199,072 386,367 366,572
Cost of agency revenues - - - -
Cost of other revenues - - - -
-------- -------- -------- --------
Total costs of revenues 205,610 199,072 386,367 366,572
-------- -------- -------- --------
Gross profit 53,779 40,494 97,153 73,481
Operating expenses:
Advertising 16,366 10,774 31,771 21,872
Sales and marketing 9,096 7,790 15,802 14,653
Personnel 7,783 7,546 16,018 15,059
General and
administrative, including
option payroll taxes 4,454 2,744 7,963 5,563
Information technology 2,455 2,604 4,969 4,971
Depreciation and
amortization 2,565 2,787 4,785 6,699
Stock based compensation 112 70 218 70
Restructuring
charge/(reversal) (12) - (12) -
Warrant costs - - - 6,638
-------- -------- -------- --------
Total operating expenses 42,819 34,315 81,514 75,525
-------- -------- -------- --------
Operating income (loss) 10,960 6,179 15,639 (2,044)
Other income:
Interest income 1,029 405 2,139 897
Interest expense (566) - (1,132) -
Equity in income (loss) of
investees, net (35) 1,105 (161) 1,105
Other 13 - 19 -
-------- -------- -------- --------
Total other income 441 1,510 865 2,002
-------- -------- -------- --------
Net income (loss) 11,401 7,689 16,504 (42)
Preferred stock dividend - - (772) (297)
-------- -------- -------- --------
Net income (loss) applicable to
common stockholders $ 11,401 $ 7,689 $ 15,732 $ (339)
======== ======== ======== ========
Net income (loss) applicable to
common stockholders per basic
common share $ 0.30 $ 0.20 $ 0.42 $ (0.01)
======== ======== ======== ========
Weighted average number of
basic common shares
outstanding 38,076 37,635 37,822 37,556
======== ======== ======== ========
Net income (loss) applicable to
common stockholders per
diluted common share $ 0.29 $ 0.20 $ 0.41 $ (0.01)
======== ======== ======== ========
Weighted average number of
diluted common shares
outstanding 39,932 39,284 38,778 37,556
======== ======== ======== ========
priceline.com Incorporated
RECONCILIATION OF GAAP GROSS PROFIT AND NET INCOME
TO PRO FORMA GROSS PROFIT AND NET INCOME
(In thousands, except per share data, unaudited)
GAAP Adjustments Adjusted
--------- ----------- ---------
Merchant revenues $249,860 $ - $249,860
Agency revenues 8,747 - 8,747
Other revenues 782 - 782
-------- ------ --------
Total revenues 259,389 - 259,389
Cost of merchant revenues 205,610 (829) (a) 204,781
Cost of agency revenues - - -
Cost of other revenues - - -
-------- ------ --------
Total costs of revenues 205,610 (829) 204,781
-------- ------ --------
Gross profit 53,779 829 54,608
Operating expenses:
Advertising 16,366 - 16,366
Sales and marketing 9,096 - 9,096
Personnel 7,783 - 7,783
General and administrative,
including option payroll taxes 4,454 (298) (b) 4,156
Information technology 2,455 - 2,455
Depreciation and amortization 2,565 (193) (c) 2,372
Stock based compensation 112 (112) (d) -
Restructuring charge/(reversal) (12) 12 (e) -
Warrant costs - - -
-------- ------ --------
Total operating expenses 42,819 (591) 42,228
-------- ------ --------
Operating income 10,960 1,420 12,380
Other income:
Interest income 1,029 - 1,029
Interest expense (566) - (566)
Equity in loss of
investees, net (35) - (35)
Other 13 (13) (f) -
-------- ------ --------
Total other income 441 (13) 428
-------- ------ --------
Net income (loss) 11,401 1,407 12,808
Preferred stock dividend - - -
-------- ------ --------
Net income (loss) applicable to
common stockholders $ 11,401 $1,407 $ 12,808
======== ====== ========
Net income (loss) applicable to
common stockholders per basic
common share $ 0.30 $ 0.34
======== ========
Weighted average number of basic
common shares outstanding 38,076 38,076
======== ========
Net income (loss) applicable to
common stockholders per diluted
common share $ 0.29 $ 0.32
======== ========
Weighted average number of diluted
common shares outstanding 39,932 39,932
======== ========
(a) Cost of revenue adjustment for Travelweb acquired intangibles.
(b) Adjustment for option payroll tax.
(c) Amortization adjustment for acquisition-related intangibles,
primarily related to Travelweb.
(d) Adjustment for stock-based compensation.
(e) Adjustment for restructuring reversal.
(f) Adjustment for minority interest credit related to Travelweb.
priceline.com Incorporated
----------------------------------------------------------------------
Consolidated Statements of Operations
In thousands, except per share data
(Unaudited)
Income Statement 1Q03 2Q03 3Q03 4Q03 1Q04
Analysis
------------------------------ --------- --------- --------- ---------
Merchant revenues $198,608 $236,943 $240,584 $176,319 $217,011
Agency revenues 1,005 1,476 1,895 3,178 6,448
Other revenues 874 1,147 962 670 672
---------- --------- --------- --------- ---------
Total revenues 200,487 239,566 243,441 180,167 224,131
Cost of merchant
revenues 167,500 199,072 202,793 148,351 180,757
Cost of agency
revenues - - - - -
Cost of other
revenues - - - - -
---------- --------- --------- --------- ---------
Total costs of
revenues 167,500 199,072 202,793 148,351 180,757
---------- --------- --------- --------- ---------
Gross profit $32,987 $40,494 $40,648 $31,816 $43,374
---------- --------- --------- --------- ---------
Operating expenses:
Advertising 11,098 10,774 10,284 10,092 15,405
Sales and
marketing 6,864 7,789 7,242 4,908 6,706
Personnel 7,512 7,547 7,441 7,180 8,235
General and
administrative 2,819 2,642 3,058 3,256 3,469
Information
technology 2,367 2,604 1,878 2,049 2,514
Depreciation and
amortization 3,912 2,787 2,510 2,324 2,220
Option payroll
taxes - 102 154 - 40
Stock based
compensation - 70 106 106 106
Restructuring
charge/(reversal) - - (137) (49) -
Warrant costs 6,638 - - - -
---------- --------- --------- --------- ---------
Total operating
expenses $41,210 $34,315 $32,536 $29,866 $38,695
Operating income
(loss) ($8,223) $6,179 $8,112 $1,950 $4,679
Other income
(expenses):
Interest income, net 492 405 229 441 544
Equity in income/(loss)
of investees, net - 1,105 1,389 (163) (126)
Other - - - - 6
---------- --------- --------- --------- ---------
Total other income $492 $1,510 $1,618 $278 $424
Net income (loss) ($7,731) $7,689 $9,730 $2,228 $5,103
Preferred stock
dividend (297) - (1,194) - (772)
---------- --------- --------- --------- ---------
Net income (loss)
applicable to
common stockholders ($8,028) $7,689 $8,536 $2,228 $4,331
========== ========= ========= ========= =========
Net income (loss)
applicable to
common stockholders
per basic common
share ($0.21) $0.20 $0.22 $0.06 $0.12
========== ========= ========= ========= =========
Net income (loss)
applicable to
common stockholders
per diluted common
share ($0.21) $0.20 $0.21 $0.06 $0.11
========== ========= ========= ========= =========
(1) Weighted
average common
shares:
Basic 37,477 37,635 38,044 38,019 37,588
Diluted 37,477 39,284 39,812 40,107 38,905
Common shares
outstanding, end of
period 37,495 37,925 38,291 37,607 37,696
------------------------------ --------- --------- --------- ---------
Gross margin 16.5% 16.9% 16.7% 17.7% 19.4%
(1) Reflects one-for-six reverse stock split.
6 mos.
2004
2Q04 vs.
Income Statement vs. 6 months 6 months 6 mos.
Analysis 2Q04 2Q03 2004 2003 2003
------------------------ --------- ----- --------- --------- ------
Merchant revenues $249,860 5% $466,871 $435,551 7%
Agency revenues 8,747 493% 15,195 2,481 512%
Other revenues 782 -32% 1,454 2,021 -28%
--------- --------- ---------
Total revenues 259,389 8% 483,520 440,053 10%
Cost of merchant
revenues 205,610 3% 386,367 366,572 5%
Cost of agency revenues - 0% - - 0%
Cost of other revenues - 0% - - 0%
--------- --------- ---------
Total costs of
revenues 205,610 3% 386,367 366,572 5%
--------- --------- ---------
Gross profit $53,779 33% $97,153 $73,481 32%
--------- --------- ---------
Operating expenses:
Advertising 16,366 52% 31,771 21,872 45%
Sales and marketing 9,096 17% 15,802 14,653 8%
Personnel 7,783 3% 16,018 15,059 6%
General and
administrative 4,156 57% 7,625 5,461 40%
Information technology 2,455 -6% 4,969 4,971 0%
Depreciation and
amortization 2,565 -8% 4,785 6,699 -29%
Option payroll taxes 298 192% 338 102 231%
Stock based
compensation 112 60% 218 70 211%
Restructuring
charge/(reversal) (12) 0% (12) - 0%
Warrant costs - 0% - 6,638 -100%
--------- --------- ---------
Total operating
expenses $42,819 25% $81,514 $75,525 8%
Operating income (loss) $10,960 77% $15,639 ($2,044) 865%
Other income (expenses):
Interest income, net 463 14% 1,007 897 12%
Equity in income/(loss)
of investees, net (35) -103% (161) 1,105 -115%
Other 13 0% 19 - 0%
--------- --------- ---------
Total other income $441 -71% 865 2,002 -57%
Net income (loss) $11,401 48% $16,504 ($42) 39395%
Preferred stock
dividend - 0% (772) (297) -160%
--------- --------- ---------
Net income (loss)
applicable to common
stockholders $11,401 48% $15,732 ($339) 4741%
========= ========= =========
Net income (loss)
applicable to common
stockholders per basic
common share $0.30 47% $0.42 ($0.01) 4708%
========= ========= =========
Net income (loss)
applicable to common
stockholders per
diluted common share $0.29 46% $0.41 ($0.01) 4594%
========= ========= =========
(1) Weighted average
common shares:
Basic 38,076 1% 37,822 37,556 1%
Diluted 39,932 2% 38,778 37,556 3%
Common shares
outstanding, end of
period 38,748 2% 38,748 37,925 2%
------------------------ --------- ----- --------- --------- ------
Gross margin 20.7% 20.1% 16.7%
(1) Reflects one-for- six reverse stock split.
priceline.com Incorporated
----------------------------------------------------------------------
Consolidated Balance Sheets
In thousands
(Unaudited)
ASSETS 3/31/2003 6/30/2003 9/30/2003
----------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $52,560 $69,292 $115,302
Restricted cash 17,025 16,869 20,750
Short-term investments 70,194 62,992 148,027
Accounts receivable, net of
allowance for doubtful
accounts 16,106 23,565 18,809
Prepaid expenses and other
current assets 6,243 8,158 6,737
----------- ----------- -----------
Total current assets 162,128 180,876 309,625
PROPERTY AND EQUIPMENT, net 17,690 16,106 16,603
INTANGIBLE ASSETS, net 1,086 3,808 3,687
GOODWILL 10,517 10,517 9,534
OTHER ASSETS 16,837 17,699 22,829
----------- ----------- -----------
TOTAL ASSETS $208,258 $229,006 $362,278
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $36,020 $46,863 $38,467
Accrued expenses 24,983 23,296 22,972
Deferred merchant bookings - - -
Other current liabilities 2,833 2,134 3,100
----------- ----------- -----------
Total current liabilities 63,836 72,293 64,539
Long-term accrued expenses 422 276 545
Other long-term liabilities - - -
Minority interest - - -
Long-term debt - - 125,000
----------- ----------- -----------
Total liabilities 64,258 72,569 190,084
----------- ----------- -----------
SERIES B MANDATORILY REDEEMABLE
PREFERRED STOCK 13,470 13,470 13,470
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 1,886 303 306
Treasury stock (338,410) (338,410) (338,410)
Additional paid-in capital 2,040,850 2,048,785 2,055,540
Deferred compensation - (1,619) (1,514)
Accumulated deficit (1,573,897) (1,566,208) (1,557,672)
Accumulated other
comprehensive income 101 116 474
----------- ----------- -----------
Total stockholders'
equity 130,530 142,967 158,724
----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 208,258 $ 229,006 $ 362,278
=========== =========== ===========
ASSETS 12/31/2003 3/31/2004 6/30/2004
------------ ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $93,732 $176,092 $156,306
Restricted cash 22,485 22,384 23,502
Short-term investments 151,736 79,576 206,360
Accounts receivable, net of
allowance for doubtful
accounts 10,782 19,052 23,733
Prepaid expenses and other
current assets 4,778 3,435 6,156
------------ ----------- -----------
Total current assets 283,513 300,539 416,057
PROPERTY AND EQUIPMENT, net 16,524 15,692 15,474
INTANGIBLE ASSETS, net 7,053 6,814 13,570
GOODWILL 8,779 8,779 32,837
OTHER ASSETS 21,915 21,385 16,674
------------ ----------- -----------
TOTAL ASSETS $ 337,784 $ 353,209 $ 494,612
============ =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $25,061 $38,023 $49,380
Accrued expenses 21,031 18,118 22,680
Deferred merchant bookings - - 8,867
Other current liabilities 3,522 3,127 3,340
------------ ----------- -----------
Total current liabilities 49,614 59,268 84,267
Long-term accrued expenses 532 399 -
Other long-term liabilities 537 36 1,763
Minority interest - - 691
Long-term debt 124,524 124,996 223,348
------------ ----------- -----------
Total liabilities 175,207 184,699 310,069
------------ ----------- -----------
SERIES B MANDATORILY REDEEMABLE
PREFERRED STOCK 13,470 13,470 13,470
------------ ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 306 307 315
Treasury stock (350,628) (350,628) (350,628)
Additional paid-in capital 2,055,607 2,056,942 2,062,613
Deferred compensation (1,408) (1,302) (1,516)
Accumulated deficit (1,555,444) (1,551,113) (1,539,712)
Accumulated other
comprehensive income 674 834 1
------------ ----------- -----------
Total stockholders'
equity 149,107 155,040 171,073
------------ ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 337,784 $ 353,209 $ 494,612
============ =========== ===========
priceline.com Incorporated
----------------------------------------------------------------------
Statistical Data
In thousands
Gross Bookings 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04
----------------------------------------------------------------------
Merchant $226,739 $267,039 $266,640 $197,543 $244,816 $295,718
Agency 20,778 30,023 33,875 58,647 115,363 174,657
-------- -------- -------- -------- -------- --------
Total $247,517 $297,061 $300,515 $256,191 $360,179 $470,375
Year/Year Growth -19.3% -16.3% 9.2% 12.2% 45.5% 58.3%
Units Sold 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04
----------------------------------------------------------------------
Airline Tickets 483 513 438 399 620 819
Year/Year Growth -44.2% -44.4% -32.0% -18.1% 28.2% 59.8%
Hotel Room-
Nights 1,234 1,505 1,642 1,319 1,669 1,983
Year/Year Growth 35.6% 38.0% 43.2% 36.9% 35.2% 31.8%
Rental Car Days 663 867 1,215 922 1,213 1,409
Year/Year Growth -12.6% 6.1% 59.1% 61.8% 83.1% 62.5%
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04
------------------------------------------------------
Revenue $200,487 $239,566 $243,441 $180,167 $224,131 $259,389
Year/Year Growth -23.4% -21.3% 1.4% -8.7% 11.8% 8.3%
Gross Profit $ 32,987 $ 40,494 $ 40,648 $ 31,816 $ 43,374 $ 53,779
Year/Year Growth -21.4% -15.9% 7.7% 4.4% 31.5% 32.8%
Gross Bookings represent the total dollar value of travel booked,
inclusive of taxes and fees.
The gross bookings and units sold information included above is for
U.S. operations only.
Return to article
|