Booking (BKNG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

priceline.com Incorporated

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	September 30, 2004			December 31, 2003
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	77,281		$	93,732
Restricted cash	25,968			22,485
Short-term investments	144,381			151,736
Accounts receivable, net of allowance for doubtful accounts of $1,196 and $794, respectively	24,146			10,782
Prepaid expenses and other current assets	7,223			4,778
Total current assets	278,999			283,513
Property and equipment, net	15,899			16,524
Intangible assets, net	96,651			7,053
Goodwill	130,118			8,779
Other assets	16,186			21,915
Total assets	$	537,853		$	337,784
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	50,640		$	25,061
Accrued expenses	25,096			21,031
Deferred merchant bookings	7,398			—
Other current liabilities	3,512			3,522
Total current liabilities	86,646			49,614
Deferred taxes	25,310			—
Other long-term liabilities	632			1,069
Minority interest	4,471			—
Long-term debt	224,572			124,524
Total liabilities	341,631			175,207
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK	13,470			13,470
Stockholders’ equity
Common stock	316			306
Treasury stock	(350,628		)	(350,628		)
Additional paid-in capital	2,063,451			2,055,607
Deferred compensation	(1,390		)	(1,408		)
Accumulated deficit	(1,530,448		)	(1,555,444		)
Accumulated other comprehensive income	1,451			674
Total stockholders’ equity	182,752			149,107
Total liabilities and stockholders’ equity	$	537,853		$	337,784

priceline.com Incorporated

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)

	Three Months Ended								Nine Months Ended
	September 30, 2004				September 30, 2003				September 30, 2004				September 30, 2003
Merchant revenues	$	226,453			$	240,584			$	693,324			$	676,135
Agency revenues	8,671				1,895				23,866				4,376
Other revenues	758				962				2,212				2,983
Total revenues	235,882				243,441				719,402				683,494
Cost of merchant revenues	184,627				202,793				570,994				569,365
Cost of agency revenues	151				—				151				—
Cost of other revenues	—				—				—				—
Total costs of revenues	184,778				202,793				571,145				569,365
Gross profit	51,104				40,648				148,257				114,129
Operating expenses:
Advertising - Offline	7,471				5,524				27,752				19,011
Advertising - Online	7,178				4,760				18,668				13,145
Sales and marketing	8,711				7,242				24,513				21,895
Personnel	8,036				7,441				24,054				22,500
General and administrative, including option payroll taxes	4,301				3,212				12,264				8,775
Information technology	2,272				1,878				7,241				6,849
Depreciation and amortization	3,359				2,510				8,144				9,209
Stock based compensation	126				106				344				176
Restructuring charge/(reversal)	—				(137			)	(12			)	(137		)
Warrant costs	—				—				—				6,638
Total operating expenses	41,454				32,536				122,968				108,061
Operating income	9,650				8,112				25,289				6,068
Other income:
Interest income	1,655				596				3,794				1,539
Interest expense	(1,299			)	(367			)	(2,431			)	(413		)
Equity in income (loss) of investees, net	9				1,389				(152			)	2,494
Other	56				—				75				—
Total other income	421				1,618				1,286				3,620
Earnings before income taxes	10,071				9,730				26,575				9,688
Income tax expense	67				—				67				—
Net income	10,004				9,730				26,508				9,688
Preferred stock dividend	(740			)	(1,194			)	(1,512			)	(1,491		)
Net income applicable to common stockholders	$		9,264		$		8,536		$		24,996		$	8,197
Net income applicable to common stockholders per basic common share	$		0.24		$		0.22		$		0.66		$	0.22
Weighted average number of basic common shares outstanding	38,684				38,044				38,111				37,726
Net income applicable to common stockholders per diluted common share	$		0.23		$		0.21		$		0.63		$	0.21
Weighted average number of diluted common shares outstanding	40,279				39,812				39,785				38,883