Exhibit 99.2
Priceline.com Reports Financial Results
For 4th Quarter And Full-Year 2003
4th quarter net income of $2.2 million, or $0.06 per share
Quarterly gross travel bookings of $256.2 million, up 12.2% year-over-year
Quarterly hotel room night sales grow 37% year-over-year
NORWALK, Conn., February 10, 2004 . . . Priceline.com® (Nasdaq: PCLN) today reported its financial results for the 4th quarter and full-year 2003. For the 4th quarter, gross travel bookings, which refers to the total dollar value, inclusive of taxes and fees, of all travel products purchased by consumers, rose 12.2% year-over-year to $256.2 million, while revenues were $180.2 million, down 8.7% from the 4th quarter 2002. Gross profit for the 4th quarter was $31.8 million, a 4.4% increase over the 4th quarter 2002, and gross margin was 17.7%, an improvement over the 15.5% reported in the 4th quarter 2002. The Company reported net income for the quarter of $2.2 million, or $0.06 per share, compared to a net loss of $7.4 million or $0.20 per share a year ago.
For full-year 2003, priceline.com reported gross travel bookings of $1.1 billion, revenue of $863.7 million and net income applicable to common stockholders of $10.4 million, or $0.27 per share, compared to a loss of $0.57 per share for 2002. The Company ended 2003 with a balance of $268.0 million in cash and short-term investments. During the 4th quarter, the Company invested $12.2 million to buy-back 690,000 shares of its common stock, which represents approximately two percent of the Company’s outstanding common stock.
“Priceline.com’s 4th quarter results were lifted by the successful launch of our new airline tickets service, which offers consumers the choice between disclosed itinerary fares and Name-Your-Own-Price® savings, as well as strong results from our hotel, rental car and new vacation products,” said Jeffery H. Boyd, priceline.com’s President and Chief Executive Officer. “The growth in total gross travel bookings and gross profit reflects a successful transition of our airline ticket business and a positive bottom-line financial result, before any significant benefit from new airline ticket advertising.”
Mr. Boyd continued, “Priceline.com reported strong product metrics across its travel products. For the 4th quarter, total merchant and agency hotel room nights sold increased 37% over the 4th quarter of 2002 and total merchant and agency rental car days increased 62%. The decline of merchant and agency airline tickets sold slowed to 18% in the 4th quarter 2003 and represents a significant improvement over the first nine months of 2003, when the airline tickets decline was over 40% compared to the first nine months of 2002. That trend has continued with current quarter-to-date total ticket sales running above last year’s levels. Air and hotel are benefiting from increasing package sales as a result of product improvements launched in the quarter.”
Revenues for the 4th quarter were down year-over-year as the new air service increased the mix of retail ticket sales (which are reported for on a “net” basis as compared to Name- Your-Own-Price® sales, which are reported on a “gross” basis). The Company noted that, commencing with the 4th quarter, it would begin disclosing total merchant and agency airline, hotel and rental car unit sales, reflecting the growing importance of agency unit sales.
4th Quarter Operating Highlights
• Priceline.com completes testing of its new airline ticketing service that gives customers a choice between picking their flights and airlines from a broad assortment of fares, or Naming Your Own Price for deeper savings.
• Priceline.com’s hotel service passes the 10,000 participating hotels milestone. The service offers top-quality hotel properties in the U.S., Europe, Asia, Canada, Mexico and the Caribbean.
• Priceline.com introduces an enhanced vacation packages service. The service offers over 2,000 hotel properties and all-inclusive resorts. The new vacation package service includes fixed pricing, more flight options and a last-minute weekender product offering flight time windows and a fast, easy booking process.
• Priceline.com signs William Shatner and Leonard Nimoy to star in a new ad campaign for its airline tickets service.
• Priceline.com adds a new look and feel to its Rentalcars.com site. The new site offers cars at special retail rates and contains links to priceline.com’s Name Your Own Price® rental car service. The 4th quarter growth in the number of rental car days sold over the 4th quarter 2002 was driven by an increase in both merchant and agency sales.
Looking forward, Mr. Boyd said, “We expect the first half of 2004 to benefit from continued positive results from our new airline ticket and vacation products. We also believe that the new William Shatner/Leonard Nimoy advertising and continuation of our successful hotel ad campaign will contribute added momentum to the business. Consequently, for the 1st quarter 2004, we are targeting:
• A 25% to 30% year-over-year increase in gross travel bookings,
• A 10% to 15% year-over-year increase in airline ticket unit bookings,
• A 25% to 30% year-over-year increase in hotel room night unit bookings ,
• A 50% to 60% year-over-year increase in rental car day unit bookings,
• Revenues roughly equal to the same period last year,
• A gross margin of 18% to 20%,
• A 15% to 20% year-over-year increase in gross profit, and
• Net income per share of $0.06 to $0.10.”
Mr. Boyd continued, “For the 2nd quarter 2004, we are targeting a 25% to 30% year-over-year increase in gross travel bookings and net income per share of $0.22 to $0.30. For the second half of 2004, we expect to generate meaningful year-over-year growth in gross travel bookings, gross profit dollars and net income.”
About priceline.com
Priceline.com is a travel service that offers leisure airline tickets, hotel rooms, rental cars, vacation packages and cruises. In addition, priceline.com offers a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee. Priceline.com operates the retail travel Web sites Lowestfare.com and Rentalcars.com. Priceline.com is part-owner of Travelweb LLC. Priceline.com licenses its business model to independent licensees, including pricelinemortgage and certain international licensees.
###
For press information: Brian Ek 203-299-8167 (brian.ek@priceline.com)
Information About Forward-Looking Statements
This press release may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals and similar expressions including, without limitation, “expect,” “believe,” “targeting,” “may,” “will,” “should,” “could,” “plans,” “anticipates,” “estimates,” “predicts,” “potential,” “targets,” or “continue,” reflecting something other than historical fact are intended to identify forward-looking statements. The following factors, among others, could cause the Company’s actual results to differ materially from those described in the forward-looking statements: adverse changes in general market conditions for leisure and other travel products as the result of, among other things, terrorist attacks; adverse changes in the Company’s relationships with airlines and other product and service providers including, without limitation, the withdrawal of suppliers from the priceline.com system; the bankruptcy or insolvency of another major domestic airline; the effects of increased competition; systems-related failures and/or security breaches; the Company’s ability to protect its intellectual property rights; losses by the Company and its licensees; final adjustments made in closing the quarter; legal and regulatory risks and the ability to attract and retain qualified personnel. For a detailed discussion of these and other factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, please refer to the Company’s most recent Form 10-Q, Form 10-K and Form 8-K filings with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
|
| December 31, |
| December 31, |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 93,732 |
| $ | 67,182 |
|
Restricted cash |
| 22,485 |
| 18,248 |
| ||
Short-term investments |
| 151,736 |
| 64,154 |
| ||
Accounts receivable, net of allowance for doubtful accounts of $794 and $1,262 at December 31, 2003 and 2002, respectively |
| 10,782 |
| 13,636 |
| ||
Prepaid expenses and other current assets |
| 4,778 |
| 6,348 |
| ||
|
|
|
|
|
| ||
Total current assets |
| 283,513 |
| 169,568 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
| 16,524 |
| 21,413 |
| ||
Intangible assets, net |
| 7,053 |
| 1,694 |
| ||
Goodwill |
| 8,779 |
| 10,517 |
| ||
Other assets, principally equity investments in pricelinemortgage, and at December 31, 2003, Travelweb LLC |
| 21,915 |
| 7,970 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 337,784 |
| $ | 211,162 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 25,061 |
| $ | 35,375 |
|
Accrued expenses |
| 21,031 |
| 27,889 |
| ||
Other current liabilities |
| 3,522 |
| 2,063 |
| ||
Total current liabilities |
| 49,614 |
| 65,327 |
| ||
|
|
|
|
|
| ||
Long-term accrued expenses |
| 532 |
| 715 |
| ||
Other long-term liabilities |
| 537 |
|
|
| ||
Long-term debt |
| 124,524 |
| — |
| ||
Total liabilities |
| 175,207 |
| 66,042 |
| ||
|
|
|
|
|
| ||
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK |
| 13,470 |
| 13,470 |
| ||
|
|
|
|
|
| ||
Stockholders’ equity |
|
|
|
|
| ||
Common stock |
| 306 |
| 1,884 |
| ||
Treasury stock |
| (350,628 | ) | (338,410 | ) | ||
Additional paid-in capital |
| 2,055,607 |
| 2,033,944 |
| ||
Deferred compensation |
| (1,408 | ) | — |
| ||
Accumulated deficit |
| (1,555,444 | ) | (1,565,869 | ) | ||
Accumulated other comprehensive income |
| 674 |
| 101 |
| ||
Total stockholders’ equity |
| 149,107 |
| 131,650 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ equity |
| $ | 337,784 |
| $ | 211,162 |
|
priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
|
| December 31, |
| December 31, |
| December 31, |
| December 31, |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Merchant revenues |
| $ | 176,319 |
| $ | 195,814 |
| $ | 852,454 |
| $ | 996,112 |
|
Agency revenues |
| 3,178 |
| 131 |
| 7,554 |
| 720 |
| ||||
Other revenues |
| 670 |
| 1,356 |
| 3,653 |
| 6,774 |
| ||||
Total revenues |
| 180,167 |
| 197,301 |
| 863,661 |
| 1,003,606 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of merchant revenues |
| 148,351 |
| 166,710 |
| 717,716 |
| 844,142 |
| ||||
Cost of agency revenues |
| — |
| — |
| — |
| — |
| ||||
Cost of other revenues |
| — |
| 107 |
| — |
| 1,098 |
| ||||
Total costs of revenues |
| 148,351 |
| 166,817 |
| 717,716 |
| 845,240 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| $ | 31,816 |
| $ | 30,484 |
| $ | 145,945 |
| $ | 158,366 |
|
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Advertising |
| 10,092 |
| 10,011 |
| 42,248 |
| 44,664 |
| ||||
Sales and marketing |
| 4,908 |
| 5,310 |
| 26,803 |
| 32,699 |
| ||||
Personnel |
| 7,180 |
| 7,493 |
| 29,680 |
| 32,045 |
| ||||
General and administrative, including option payroll taxes |
| 3,256 |
| 3,187 |
| 12,031 |
| 13,298 |
| ||||
Information technology |
| 2,049 |
| 3,142 |
| 8,898 |
| 12,008 |
| ||||
Depreciation and amortization |
| 2,324 |
| 4,466 |
| 11,533 |
| 18,264 |
| ||||
Stock based compensation |
| 106 |
| 250 |
| 282 |
| 1,000 |
| ||||
Special charge (reversal) |
| — |
| — |
| — |
| (200 | ) | ||||
Restructuring charge (reversal) |
| (49 | ) | 4,654 |
| (186 | ) | 3,738 |
| ||||
Severance charge (reversal) |
| — |
| — |
| — |
| (55 | ) | ||||
Impairment charge |
| — |
| — |
| — |
| 24,229 |
| ||||
Warrant costs |
| — |
| — |
| 6,638 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
| $ | 29,866 |
| $ | 38,513 |
| $ | 137,927 |
| $ | 181,690 |
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) |
| $ | 1,950 |
| $ | (8,029 | ) | $ | 8,018 |
| $ | (23,324 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Other income: |
|
|
|
|
|
|
|
|
| ||||
Interest income |
| 1,004 |
| 647 |
| 2,474 |
| 2,911 |
| ||||
Interest expense |
| (563 | ) | (30 | ) | (907 | ) | (68 | ) | ||||
Equity in income of investees, net |
| (163 | ) | — |
| 2,331 |
| 1,131 |
| ||||
Other |
| — |
| 1 |
| — |
| 166 |
| ||||
Total other income |
| $ | 278 |
| $ | 618 |
| $ | 3,898 |
| $ | 4,140 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
| 2,228 |
| (7,411 | ) | 11,916 |
| (19,184 | ) | ||||
Preferred stock dividend |
|
|
| — |
| (1,491 | ) | (2,344 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) applicable to common stockholders |
| $ | 2,228 |
| $ | (7,411 | ) | $ | 10,425 |
| $ | (21,528 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) applicable to common stockholders per basic common share |
| $ | 0.06 |
| $ | (0.20 | ) | $ | 0.28 |
| $ | (0.57 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of basic common shares outstanding |
| 38,019 |
| 37,452 |
| 37,804 |
| 37,881 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) applicable to common stockholders per diluted common share |
| $ | 0.06 |
| $ | (0.20 | ) | $ | 0.27 |
| $ | (0.57 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of diluted common shares outstanding |
| 40,107 |
| 37,452 |
| 39,009 |
| 37,881 |
| ||||
priceline.com Incorporated - 2003 FOURTH QUARTER FINANCIAL DATA SUPPLEMENT |
|
priceline.com Financials |
| |
|
| |
|
| |
|
|
|
|
| |
|
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| ||
This supplement is unaudited and intended as a supplement to, and should be read in conjunction with, the Company’s audited financial statements and the notes thereto filed with the SEC on Form 10-K and unaudited quarterly financial statements filed with the SEC on Form 10-Q. Certain data have been reclassified in order to conform historical information in a manner consistent with current presentation and has not been audited in this form. Certain presentations within this supplement are not consistent with Generally Accepted Accounting Principles.
priceline.com Incorporated
Consolidated Statements of Operations
In thousands, except per share data
(Unaudited)
Income Statement Analysis |
| 1Q02 |
| 2Q02 |
| 3Q02 |
| 4Q02 |
| 1Q03 |
| 2Q03 |
| 3Q03 |
| 4Q03 |
| 4Q03 vs. |
| 12 months |
| 12 months |
| 12 mos. 2003 vs. |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Merchant revenues |
| $ | 259,667 |
| $ | 302,670 |
| $ | 237,961 |
| $ | 195,814 |
| $ | 198,608 |
| $ | 236,943 |
| $ | 240,584 |
| $ | 176,319 |
| -10 | % | $ | 852,454 |
| $ | 996,112 |
| -14 | % |
Agency revenues |
| 218 |
| 211 |
| 160 |
| 131 |
| 1,005 |
| 1,476 |
| 1,895 |
| 3,178 |
| 2326 | % | 7,554 |
| 720 |
| 949 | % | ||||||||||
Other revenues |
| 2,000 |
| 1,575 |
| 1,843 |
| 1,356 |
| 874 |
| 1,147 |
| 962 |
| 670 |
| -51 | % | 3,653 |
| 6,774 |
| -46 | % | ||||||||||
Total revenues |
| 261,885 |
| 304,456 |
| 239,964 |
| 197,301 |
| 200,487 |
| 239,566 |
| 243,441 |
| 180,167 |
| -9 | % | 863,661 |
| 1,003,606 |
| -14 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cost of merchant revenues |
| 219,511 |
| 255,972 |
| 201,949 |
| 166,710 |
| 167,500 |
| 199,072 |
| 202,793 |
| 148,351 |
| -11 | % | 717,716 |
| 844,142 |
| -15 | % | ||||||||||
Cost of agency revenues |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||||||
Cost of other revenues |
| 381 |
| 336 |
| 274 |
| 107 |
| — |
| — |
| — |
| — |
| -100 | % | — |
| 1,098 |
| -100 | % | ||||||||||
Total costs of revenues |
| 219,892 |
| 256,308 |
| 202,223 |
| 166,817 |
| 167,500 |
| 199,072 |
| 202,793 |
| 148,351 |
| -11 | % | 717,716 |
| 845,240 |
| -15 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross profit |
| $ | 41,993 |
| $ | 48,148 |
| $ | 37,741 |
| $ | 30,484 |
| $ | 32,987 |
| $ | 40,494 |
| $ | 40,648 |
| $ | 31,816 |
| 4 | % | $ | 145,945 |
| $ | 158,366 |
| -8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Advertising |
| 10,227 |
| 12,777 |
| 11,649 |
| 10,011 |
| 11,098 |
| 10,774 |
| 10,284 |
| 10,092 |
| 1 | % | 42,248 |
| 44,664 |
| -5 | % | ||||||||||
Sales and marketing |
| 9,259 |
| 10,463 |
| 7,667 |
| 5,310 |
| 6,864 |
| 7,789 |
| 7,242 |
| 4,908 |
| -8 | % | 26,803 |
| 32,699 |
| -18 | % | ||||||||||
Personnel |
| 7,721 |
| 8,434 |
| 8,397 |
| 7,493 |
| 7,512 |
| 7,547 |
| 7,441 |
| 7,180 |
| -4 | % | 29,680 |
| 32,045 |
| -7 | % | ||||||||||
General and administrative |
| 3,208 |
| 3,536 |
| 3,247 |
| 3,187 |
| 2,819 |
| 2,642 |
| 3,058 |
| 3,256 |
| 2 | % | 11,775 |
| 13,178 |
| -11 | % | ||||||||||
Information technology |
| 3,087 |
| 3,198 |
| 2,581 |
| 3,142 |
| 2,367 |
| 2,604 |
| 1,878 |
| 2,049 |
| -35 | % | 8,898 |
| 12,008 |
| -26 | % | ||||||||||
Depreciation and amortization |
| 4,458 |
| 4,490 |
| 4,850 |
| 4,466 |
| 3,912 |
| 2,787 |
| 2,510 |
| 2,324 |
| -48 | % | 11,533 |
| 18,264 |
| -37 | % | ||||||||||
Option payroll taxes |
| 104 |
| 16 |
| — |
| — |
| — |
| 102 |
| 154 |
| — |
| — |
| 256 |
| 120 |
| 113 | % | ||||||||||
Stock based compensation |
| 250 |
| 250 |
| 250 |
| 250 |
| — |
| 70 |
| 106 |
| 106 |
| -58 | % | 282 |
| 1,000 |
| -72 | % | ||||||||||
Special charge/(reversal) |
| — |
| (200 | ) | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (200 | ) | 100 | % | ||||||||||
Restructuring charge/(reversal) |
| (824 | ) | — |
| (92 | ) | 4,654 |
| — |
| — |
| (137 | ) | (49 | ) | -101 | % | (186 | ) | 3,738 |
| -105 | % | ||||||||||
Severance charge/(reversal) |
| — |
| (55 | ) | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (55 | ) | 100 | % | ||||||||||
Impairment charge |
| — |
| — |
| 24,229 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 24,229 |
| -100 | % | ||||||||||
Warrant costs |
| — |
| — |
| — |
| — |
| 6,638 |
| — |
| — |
| — |
| — |
| 6,638 |
| — |
| — |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total operating expenses |
| $ | 37,490 |
| $ | 42,909 |
| $ | 62,778 |
| $ | 38,513 |
| $ | 41,210 |
| $ | 34,315 |
| $ | 32,536 |
| $ | 29,866 |
| -22 | % | $ | 137,927 |
| $ | 181,690 |
| -24 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating income (loss) |
| $ | 4,503 |
| $ | 5,239 |
| $ | (25,037 | ) | $ | (8,029 | ) | $ | (8,223 | ) | $ | 6,179 |
| $ | 8,112 |
| $ | 1,950 |
| 124 | % | $ | 8,018 |
| $ | (23,324 | ) | 134 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest income, net |
| 782 |
| 788 |
| 656 |
| 617 |
| 492 |
| 405 |
| 229 |
| 441 |
| -29 | % | 1,567 |
| 2,843 |
| -45 | % | ||||||||||
Equity in income/(loss) of investees, net |
| 492 |
| 245 |
| 394 |
| — |
| — |
| 1,105 |
| 1,389 |
| (163 | ) | — |
| 2,331 |
| 1,131 |
| 106 | % | ||||||||||
Other |
| (36 | ) | 37 |
| 164 |
| 1 |
| — |
| — |
| — |
| — |
| -100 | % | — |
| 166 |
| -100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total other income |
| $ | 1,238 |
| $ | 1,070 |
| $ | 1,214 |
| $ | 618 |
| $ | 492 |
| $ | 1,510 |
| $ | 1,618 |
| $ | 278 |
| -55 | % | $ | 3,898 |
| $ | 4,140 |
| -6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income (loss) |
| $ | 5,741 |
| $ | 6,309 |
| $ | (23,823 | ) | $ | (7,411 | ) | $ | (7,731 | ) | $ | 7,689 |
| $ | 9,730 |
| $ | 2,228 |
| 130 | % | $ | 11,916 |
| $ | (19,184 | ) | 162 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Preferred stock dividend |
| (1,854 | ) | — |
| (490 | ) | — |
| (297 | ) | — |
| (1,194 | ) | — |
| — |
| (1,491 | ) | (2,344 | ) | 36 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income (loss) applicable to common stockholders |
| $ | 3,887 |
| $ | 6,309 |
| $ | (24,313 | ) | $ | (7,411 | ) | $ | (8,028 | ) | $ | 7,689 |
| $ | 8,536 |
| $ | 2,228 |
| 130 | % | $ | 10,425 |
| $ | (21,528 | ) | 148 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income (loss) applicable to common stockholders per basic common share |
| $ | 0.10 |
| $ | 0.16 |
| $ | (0.64 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | 0.20 |
| $ | 0.22 |
| $ | 0.06 |
| 130 | % | $ | 0.28 |
| $ | (0.57 | ) | 149 | % |
|
|
|
|
|
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|
|
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|
|
|
|
|
|
| ||||||||||
Net income (loss) applicable to common stockholders per diluted common share |
| $ | 0.10 |
| $ | 0.16 |
| $ | (0.64 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | 0.20 |
| $ | 0.21 |
| $ | 0.06 |
| 130 | % | $ | 0.27 |
| $ | (0.57 | ) | 147 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
(1) Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic |
| 37,917 |
| 38,280 |
| 37,879 |
| 37,452 |
| 37,477 |
| 37,635 |
| 38,044 |
| 38,019 |
| 2 | % | 37,804 |
| 37,881 |
| 0 | % | ||||||||||
Diluted |
| 39,995 |
| 39,917 |
| 37,879 |
| 37,452 |
| 37,477 |
| 39,284 |
| 39,812 |
| 40,107 |
| 7 | % | 39,009 |
| 37,881 |
| 3 | % | ||||||||||
Common shares outstanding, end of period |
| 38,257 |
| 38,298 |
| 37,451 |
| 37,452 |
| 37,495 |
| 37,925 |
| 38,291 |
| 37,607 |
| 0 | % | 37,607 |
| 37,452 |
| 0 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross margin |
| 16.0 | % | 15.8 | % | 15.7 | % | 15.5 | % | 16.5 | % | 16.9 | % | 16.7 | % | 17.7 | % |
|
| 16.9 | % | 15.8 | % |
|
| ||||||||||
(1) Reflects one-for-six reverse stock split.
1
priceline.com Incorporated
In thousands
(Unaudited)
|
| 3/31/2002 |
| 6/30/2002 |
| 9/30/2002 |
| 12/31/2002 |
| 3/31/2003 |
| 6/30/2003 |
| 9/30/2003 |
| 12/31/2003 |
| ||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Cash and cash equivalents |
| $ | 92,051 |
| $ | 98,140 |
| $ | 66,857 |
| $ | 67,182 |
| $ | 52,560 |
| $ | 69,292 |
| $ | 115,302 |
| $ | 93,732 |
|
Restricted cash |
| 17,454 |
| 19,573 |
| 18,174 |
| 18,248 |
| 17,025 |
| 16,869 |
| 20,750 |
| 22,485 |
| ||||||||
Short-term investments |
| 68,327 |
| 62,458 |
| 67,478 |
| 64,154 |
| 70,194 |
| 62,992 |
| 148,027 |
| 151,736 |
| ||||||||
Accounts receivable, net of allowance for doubtful accounts |
| 20,218 |
| 21,977 |
| 16,654 |
| 13,636 |
| 16,106 |
| 23,565 |
| 18,809 |
| 10,782 |
| ||||||||
Prepaid expenses and other current assets |
| 10,544 |
| 8,640 |
| 9,068 |
| 6,348 |
| 6,243 |
| 8,158 |
| 6,737 |
| 4,778 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total current assets |
| 208,594 |
| 210,788 |
| 178,231 |
| 169,568 |
| 162,128 |
| 180,876 |
| 309,625 |
| 283,513 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
PROPERTY AND EQUIPMENT, net |
| 31,291 |
| 28,205 |
| 25,279 |
| 21,413 |
| 17,690 |
| 16,106 |
| 16,603 |
| 16,524 |
| ||||||||
INTANGIBLE ASSETS, net |
| 631 |
| 566 |
| 998 |
| 1,174 |
| 1,086 |
| 3,808 |
| 3,687 |
| 7,053 |
| ||||||||
GOODWILL |
| 22,535 |
| 22,535 |
| 10,517 |
| 10,517 |
| 10,517 |
| 10,517 |
| 9,534 |
| 8,779 |
| ||||||||
OTHER ASSETS |
| 19,100 |
| 20,040 |
| 8,793 |
| 8,490 |
| 16,837 |
| 17,699 |
| 22,829 |
| 21,915 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
TOTAL ASSETS |
| $ | 282,151 |
| $ | 282,134 |
| $ | 223,818 |
| $ | 211,162 |
| $ | 208,258 |
| $ | 229,006 |
| $ | 362,278 |
| $ | 337,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Accounts payable |
| $ | 62,177 |
| $ | 55,422 |
| $ | 40,972 |
| $ | 35,375 |
| $ | 36,020 |
| $ | 46,863 |
| $ | 38,467 |
| $ | 25,061 |
|
Accrued expenses |
| 31,750 |
| 32,318 |
| 25,861 |
| 27,889 |
| 24,983 |
| 23,296 |
| 22,972 |
| 21,031 |
| ||||||||
Other current liabilities |
| 5,050 |
| 4,954 |
| 3,495 |
| 2,063 |
| 2,833 |
| 2,134 |
| 3,100 |
| 3,522 |
| ||||||||
Total current liabilities |
| 98,977 |
| 92,694 |
| 70,328 |
| 65,327 |
| 63,836 |
| 72,293 |
| 64,539 |
| 49,614 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Long-term accrued expenses |
| 2,365 |
| 1,483 |
| 1,001 |
| 715 |
| 422 |
| 276 |
| 545 |
| 532 |
| ||||||||
Other long-term liabilities |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 537 |
| ||||||||
Long-term debt |
| — |
| — |
| — |
| — |
| — |
| — |
| 125,000 |
| 124,524 |
| ||||||||
Total liabilities |
| 101,342 |
| 94,177 |
| 71,329 |
| 66,042 |
| 64,258 |
| 72,569 |
| 190,084 |
| 175,207 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK |
| 13,470 |
| 13,470 |
| 13,470 |
| 13,470 |
| 13,470 |
| 13,470 |
| 13,470 |
| 13,470 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Common stock |
| 1,880 |
| 1,882 |
| 1,884 |
| 1,884 |
| 1,886 |
| 303 |
| 306 |
| 306 |
| ||||||||
Treasury stock |
| (326,633 | ) | (326,633 | ) | (338,410 | ) | (338,410 | ) | (338,410 | ) | (338,410 | ) | (338,410 | ) | (350,628 | ) | ||||||||
Additional paid-in capital |
| 2,032,547 |
| 2,033,313 |
| 2,033,938 |
| 2,033,944 |
| 2,040,850 |
| 2,048,785 |
| 2,055,540 |
| 2,055,607 |
| ||||||||
Deferred compensation |
| — |
| — |
| — |
| — |
| — |
| (1,619 | ) | (1,514 | ) | (1,408 | ) | ||||||||
Accumulated deficit |
| (1,540,455 | ) | (1,534,145 | ) | (1,558,458 | ) | (1,565,869 | ) | (1,573,897 | ) | (1,566,208 | ) | (1,557,672 | ) | (1,555,444 | ) | ||||||||
Accumulated other comprehensive income |
| — |
| 70 |
| 65 |
| 101 |
| 101 |
| 116 |
| 474 |
| 674 |
| ||||||||
Total stockholders’ equity |
| 167,339 |
| 174,487 |
| 139,019 |
| 131,650 |
| 130,530 |
| 142,967 |
| 158,724 |
| 149,107 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
| $ | 282,151 |
| $ | 282,134 |
| $ | 223,818 |
| $ | 211,162 |
| $ | 208,258 |
| $ | 229,006 |
| $ | 362,278 |
| $ | 337,784 |
|
2
priceline.com Incorporated
In thousands
Gross Bookings |
| 1Q02 |
| 2Q02 |
| 3Q02 |
| 4Q02 |
| 1Q03 |
| 2Q03 |
| 3Q03 |
| 4Q03 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Merchant |
| $ | 302,564 |
| $ | 351,039 |
| $ | 271,922 |
| $ | 218,100 |
| $ | 226,739 |
| $ | 267,039 |
| $ | 266,640 |
| $ | 197,543 |
|
Agency |
| 4,251 |
| 3,744 |
| 3,385 |
| 10,228 |
| 20,778 |
| 30,023 |
| 33,875 |
| 58,647 |
| ||||||||
Total |
| $ | 306,814 |
| $ | 354,783 |
| $ | 275,307 |
| $ | 228,328 |
| $ | 247,517 |
| $ | 297,061 |
| $ | 300,515 |
| $ | 256,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Year/Year Growth |
|
|
|
|
|
|
|
|
| -19.3 | % | -16.3 | % | 9.2 | % | 12.2 | % | ||||||||
Units Sold |
| 1Q02 |
| 2Q02 |
| 3Q02 |
| 4Q02 |
| 1Q03 |
| 2Q03 |
| 3Q03 |
| 4Q03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Tickets |
| 867 |
| 921 |
| 644 |
| 487 |
| 483 |
| 513 |
| 438 |
| 399 |
|
Year/Year Growth |
|
|
|
|
|
|
|
|
| -44.2 | % | -44.4 | % | -32.0 | % | -18.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Room-Nights |
| 910 |
| 1,091 |
| 1,146 |
| 963 |
| 1,234 |
| 1,505 |
| 1,642 |
| 1,319 |
|
Year/Year Growth |
|
|
|
|
|
|
|
|
| 35.6 | % | 38.0 | % | 43.2 | % | 36.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Car Days |
| 759 |
| 817 |
| 764 |
| 570 |
| 663 |
| 867 |
| 1,215 |
| 922 |
|
Year/Year Growth |
|
|
|
|
|
|
|
|
| -12.6 | % | 6.1 | % | 59.1 | % | 61.8 | % |
|
| 1Q02 |
| 2Q02 |
| 3Q02 |
| 4Q02 |
| 1Q03 |
| 2Q03 |
| 3Q03 |
| 4Q03 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Revenue |
| $ | 261,885 |
| $ | 304,456 |
| $ | 239,964 |
| $ | 197,301 |
| $ | 200,487 |
| $ | 239,566 |
| $ | 243,441 |
| $ | 180,167 |
|
Year/Year Growth |
|
|
|
|
|
|
|
|
| -23.4 | % | -21.3 | % | 1.4 | % | -8.7 | % | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Gross Profit |
| $ | 41,993 |
| $ | 48,148 |
| $ | 37,741 |
| $ | 30,484 |
| $ | 32,987 |
| $ | 40,494 |
| $ | 40,648 |
| $ | 31,816 |
|
Year/Year Growth |
|
|
|
|
|
|
|
|
| -21.4 | % | -15.9 | % | 7.7 | % | 4.4 | % | ||||||||
Gross Bookings represent the total dollar value of travel booked, inclusive of taxes and fees, through the priceline.com, lowestfare.com and rentalcars.com sites.
The information included above is for U.S. operations only.
3