Exhibit 99.1
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
| September 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 |
| $ | 77,281 |
| $ | 93,732 |
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Restricted cash |
| 25,968 |
| 22,485 |
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Short-term investments |
| 144,381 |
| 151,736 |
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Accounts receivable, net of allowance for doubtful accounts of $1,196 and $794, respectively |
| 24,146 |
| 10,782 |
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Prepaid expenses and other current assets |
| 7,223 |
| 4,778 |
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Total current assets |
| 278,999 |
| 283,513 |
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Property and equipment, net |
| 15,899 |
| 16,524 |
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Intangible assets, net |
| 96,651 |
| 7,053 |
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Goodwill |
| 130,118 |
| 8,779 |
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Other assets |
| 16,186 |
| 21,915 |
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Total assets |
| $ | 537,853 |
| $ | 337,784 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 50,640 |
| $ | 25,061 |
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Accrued expenses |
| 25,096 |
| 21,031 |
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Deferred merchant bookings |
| 7,398 |
| — |
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Other current liabilities |
| 3,512 |
| 3,522 |
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Total current liabilities |
| 86,646 |
| 49,614 |
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Deferred taxes |
| 25,310 |
| — |
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Other long-term liabilities |
| 632 |
| 1,069 |
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Minority interest |
| 4,471 |
| — |
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Long-term debt |
| 224,572 |
| 124,524 |
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Total liabilities |
| 341,631 |
| 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 |
| 316 |
| 306 |
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Treasury stock |
| (350,628 | ) | (350,628 | ) | ||
Additional paid-in capital |
| 2,063,451 |
| 2,055,607 |
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Deferred compensation |
| (1,390 | ) | (1,408 | ) | ||
Accumulated deficit |
| (1,530,448 | ) | (1,555,444 | ) | ||
Accumulated other comprehensive income |
| 1,451 |
| 674 |
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Total stockholders’ equity |
| 182,752 |
| 149,107 |
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Total liabilities and stockholders’ equity |
| $ | 537,853 |
| $ | 337,784 |
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priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
|
| Three Months Ended |
| Nine Months Ended |
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|
| September 30, |
| September 30, |
| September 30, |
| September 30, |
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Merchant revenues |
| $ | 226,453 |
| $ | 240,584 |
| $ | 693,324 |
| $ | 676,135 |
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Agency revenues |
| 8,671 |
| 1,895 |
| 23,866 |
| 4,376 |
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Other revenues |
| 758 |
| 962 |
| 2,212 |
| 2,983 |
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Total revenues |
| 235,882 |
| 243,441 |
| 719,402 |
| 683,494 |
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Cost of merchant revenues |
| 184,627 |
| 202,793 |
| 570,994 |
| 569,365 |
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Cost of agency revenues |
| 151 |
| — |
| 151 |
| — |
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Cost of other revenues |
| — |
| — |
| — |
| — |
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Total costs of revenues |
| 184,778 |
| 202,793 |
| 571,145 |
| 569,365 |
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Gross profit |
| 51,104 |
| 40,648 |
| 148,257 |
| 114,129 |
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Operating expenses: |
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Advertising - Offline |
| 7,471 |
| 5,524 |
| 27,752 |
| 19,011 |
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Advertising - Online |
| 7,178 |
| 4,760 |
| 18,668 |
| 13,145 |
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Sales and marketing |
| 8,711 |
| 7,242 |
| 24,513 |
| 21,895 |
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Personnel |
| 8,036 |
| 7,441 |
| 24,054 |
| 22,500 |
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General and administrative, including option payroll taxes |
| 4,301 |
| 3,212 |
| 12,264 |
| 8,775 |
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Information technology |
| 2,272 |
| 1,878 |
| 7,241 |
| 6,849 |
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Depreciation and amortization |
| 3,359 |
| 2,510 |
| 8,144 |
| 9,209 |
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Stock based compensation |
| 126 |
| 106 |
| 344 |
| 176 |
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Restructuring charge/(reversal) |
| — |
| (137 | ) | (12 | ) | (137 | ) | |||||||
Warrant costs |
| — |
| — |
| — |
| 6,638 |
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Total operating expenses |
| 41,454 |
| 32,536 |
| 122,968 |
| 108,061 |
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Operating income |
| 9,650 |
| 8,112 |
| 25,289 |
| 6,068 |
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Other income: |
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Interest income |
| 1,655 |
| 596 |
| 3,794 |
| 1,539 |
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Interest expense |
| (1,299 | ) | (367 | ) | (2,431 | ) | (413 | ) | |||||||
Equity in income (loss) of investees, net |
| 9 |
| 1,389 |
| (152 | ) | 2,494 |
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Other |
| 56 |
| — |
| 75 |
| — |
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Total other income |
| 421 |
| 1,618 |
| 1,286 |
| 3,620 |
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Earnings before income taxes |
| 10,071 |
| 9,730 |
| 26,575 |
| 9,688 |
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Income tax expense |
| 67 |
| — |
| 67 |
| — |
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Net income |
| 10,004 |
| 9,730 |
| 26,508 |
| 9,688 |
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Preferred stock dividend |
| (740 | ) | (1,194 | ) | (1,512 | ) | (1,491 | ) | |||||||
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Net income applicable to common stockholders |
| $ | 9,264 |
| $ | 8,536 |
| $ | 24,996 |
| $ | 8,197 |
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Net income applicable to common stockholders per basic common share |
| $ | 0.24 |
| $ | 0.22 |
| $ | 0.66 |
| $ | 0.22 |
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Weighted average number of basic common shares outstanding |
| 38,684 |
| 38,044 |
| 38,111 |
| 37,726 |
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Net income applicable to common stockholders per diluted common share |
| $ | 0.23 |
| $ | 0.21 |
| $ | 0.63 |
| $ | 0.21 |
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Weighted average number of diluted common shares outstanding |
| 40,279 |
| 39,812 |
| 39,785 |
| 38,883 |
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