Exhibit 99.1
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
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| June 30, |
| December 31, |
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| (unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 156,306 |
| $ | 93,732 |
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Restricted cash |
| 23,502 |
| 22,485 |
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Short-term investments |
| 206,360 |
| 151,736 |
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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 |
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Prepaid expenses and other current assets |
| 6,156 |
| 4,778 |
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Total current assets |
| 416,057 |
| 283,513 |
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Property and equipment, net |
| 15,474 |
| 16,524 |
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Intangible assets, net |
| 13,570 |
| 7,053 |
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Goodwill |
| 32,837 |
| 8,779 |
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Other assets |
| 16,674 |
| 21,915 |
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Total assets |
| $ | 494,612 |
| $ | 337,784 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 49,380 |
| $ | 25,061 |
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Accrued expenses |
| 22,680 |
| 21,031 |
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Deferred merchant bookings |
| 8,867 |
| — |
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Other current liabilities |
| 3,340 |
| 3,522 |
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Total current liabilities |
| 84,267 |
| 49,614 |
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Other long-term liabilities |
| 1,763 |
| 1,069 |
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Minority interest |
| 691 |
| — |
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Long-term debt |
| 223,348 |
| 124,524 |
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Total liabilities |
| 310,069 |
| 175,207 |
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SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK |
| 13,470 |
| 13,470 |
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Stockholders’ equity |
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Common stock |
| 315 |
| 306 |
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Treasury stock |
| (350,628 | ) | (350,628 | ) | ||
Additional paid-in capital |
| 2,062,613 |
| 2,055,607 |
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Deferred compensation |
| (1,516 | ) | (1,408 | ) | ||
Accumulated deficit |
| (1,539,712 | ) | (1,555,444 | ) | ||
Accumulated other comprehensive income |
| 1 |
| 674 |
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Total stockholders’ equity |
| 171,073 |
| 149,107 |
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Total liabilities and stockholders’ equity |
| $ | 494,612 |
| $ | 337,784 |
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priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
|
| Three Months Ended |
| Six Months Ended |
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|
| June 30, |
| June 30, |
| June 30, |
| June 30, |
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Merchant revenues |
| $ | 249,860 |
| $ | 236,943 |
| $ | 466,871 |
| $ | 435,551 |
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Agency revenues |
| 8,747 |
| 1,476 |
| 15,195 |
| 2,481 |
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Other revenues |
| 782 |
| 1,147 |
| 1,454 |
| 2,021 |
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Total revenues |
| 259,389 |
| 239,566 |
| 483,520 |
| 440,053 |
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Cost of merchant revenues |
| 205,610 |
| 199,072 |
| 386,367 |
| 366,572 |
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Cost of agency revenues |
| — |
| — |
| — |
| — |
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Cost of other revenues |
| — |
| — |
| — |
| — |
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Total costs of revenues |
| 205,610 |
| 199,072 |
| 386,367 |
| 366,572 |
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Gross profit |
| 53,779 |
| 40,494 |
| 97,153 |
| 73,481 |
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Operating expenses: |
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Advertising |
| 16,366 |
| 10,774 |
| 31,771 |
| 21,872 |
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Sales and marketing |
| 9,096 |
| 7,790 |
| 15,802 |
| 14,653 |
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Personnel |
| 7,783 |
| 7,546 |
| 16,018 |
| 15,059 |
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General and administrative, including option payroll taxes |
| 4,454 |
| 2,744 |
| 7,963 |
| 5,563 |
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Information technology |
| 2,455 |
| 2,604 |
| 4,969 |
| 4,971 |
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Depreciation and amortization |
| 2,565 |
| 2,787 |
| 4,785 |
| 6,699 |
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Stock based compensation |
| 112 |
| 70 |
| 218 |
| 70 |
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Restructuring charge/(reversal) |
| (12 | ) | — |
| (12 | ) | — |
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Warrant costs |
| — |
| — |
| — |
| 6,638 |
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Total operating expenses |
| 42,819 |
| 34,315 |
| 81,514 |
| 75,525 |
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Operating income (loss) |
| 10,960 |
| 6,179 |
| 15,639 |
| (2,044 | ) | ||||
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Other income: |
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Interest income |
| 1,029 |
| 405 |
| 2,139 |
| 897 |
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Interest expense |
| (566 | ) | — |
| (1,132 | ) | — |
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Equity in income (loss) of investees, net |
| (35 | ) | 1,105 |
| (161 | ) | 1,105 |
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Other |
| 13 |
| — |
| 19 |
| — |
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Total other income |
| 441 |
| 1,510 |
| 865 |
| 2,002 |
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Net income (loss) |
| 11,401 |
| 7,689 |
| 16,504 |
| (42 | ) | ||||
Preferred stock dividend |
| — |
| — |
| (772 | ) | (297 | ) | ||||
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Net income (loss) applicable to common stockholders |
| $ | 11,401 |
| $ | 7,689 |
| $ | 15,732 |
| $ | (339 | ) |
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Net income (loss) applicable to common stockholders per basic common share |
| $ | 0.30 |
| $ | 0.20 |
| $ | 0.42 |
| $ | (0.01 | ) |
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Weighted average number of basic common shares outstanding |
| 38,076 |
| 37,635 |
| 37,822 |
| 37,556 |
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Net income (loss) applicable to common stockholders per diluted common share |
| $ | 0.29 |
| $ | 0.20 |
| $ | 0.41 |
| $ | (0.01 | ) |
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Weighted average number of diluted common shares outstanding |
| 39,932 |
| 39,284 |
| 38,778 |
| 37,556 |
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