Exhibit 99.1
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
| December 31, |
| 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 |
| $ | 93,775 |
| $ | 93,732 |
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Restricted cash |
| 23,572 |
| 22,485 |
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Short-term investments |
| 130,307 |
| 151,736 |
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Accounts receivable, net of allowance for doubtful accounts of $1,390 and $794, respectively |
| 18,314 |
| 10,782 |
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Prepaid expenses and other current assets |
| 4,365 |
| 4,778 |
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Total current assets |
| 270,333 |
| 283,513 |
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Property and equipment, net |
| 15,827 |
| 16,524 |
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Intangible assets, net |
| 98,908 |
| 7,053 |
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Goodwill |
| 138,859 |
| 8,779 |
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Other assets |
| 18,155 |
| 21,915 |
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Total assets |
| $ | 542,082 |
| $ | 337,784 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 40,612 |
| $ | 25,061 |
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Accrued expenses |
| 23,649 |
| 21,031 |
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Deferred merchant bookings |
| 5,641 |
| — |
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Other current liabilities |
| 4,475 |
| 3,522 |
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Total current liabilities |
| 74,377 |
| 49,614 |
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Deferred taxes |
| 25,668 |
| — |
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Other long-term liabilities |
| 692 |
| 1,069 |
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Minority interest |
| 4,314 |
| — |
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Long-term debt |
| 224,418 |
| 124,524 |
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Total liabilities |
| 329,469 |
| 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 |
| 317 |
| 306 |
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Treasury stock |
| (350,628 | ) | (350,628 | ) | ||
Additional paid-in capital |
| 2,064,224 |
| 2,055,607 |
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Deferred compensation |
| (1,264 | ) | (1,408 | ) | ||
Accumulated deficit |
| (1,525,447 | ) | (1,555,444 | ) | ||
Accumulated other comprehensive income |
| 11,941 |
| 674 |
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Total stockholders’ equity |
| 199,143 |
| 149,107 |
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Total liabilities and stockholders’ equity |
| $ | 542,082 |
| $ | 337,784 |
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priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
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|
| December 31, |
| December 31, |
| December 31, |
| December 31, |
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Merchant revenues |
| $ | 179,669 |
| $ | 176,319 |
| $ | 872,994 |
| $ | 852,454 |
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Agency revenues |
| 14,734 |
| 3,178 |
| 38,601 |
| 7,554 |
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Other revenues |
| 565 |
| 670 |
| 2,777 |
| 3,653 |
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Total revenues |
| 194,968 |
| 180,167 |
| 914,372 |
| 863,661 |
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Cost of merchant revenues |
| 143,827 |
| 148,351 |
| 714,822 |
| 717,716 |
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Cost of agency revenues |
| 1,244 |
| — |
| 1,395 |
| — |
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Cost of other revenues |
| — |
| — |
| — |
| — |
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Total costs of revenues |
| 145,071 |
| 148,351 |
| 716,217 |
| 717,716 |
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Gross profit |
| 49,897 |
| 31,816 |
| 198,155 |
| 145,945 |
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Operating expenses: |
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Advertising - Offline |
| 6,018 |
| 6,028 |
| 33,476 |
| 25,125 |
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Advertising - Online |
| 8,518 |
| 4,064 |
| 27,480 |
| 17,123 |
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Sales and marketing, including warrant costs of $6,638 for the twelve months ended December 31, 2003 |
| 7,577 |
| 4,908 |
| 32,091 |
| 33,441 |
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Personnel, including stock based compensation of $294 and $106 for the three months ended December 31, 2004 and 2003, respectively, and $638 and $282 for the twelve months ended December 31, 2004 and 2003, respectively |
| 11,176 |
| 7,286 |
| 35,574 |
| 29,962 |
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General and administrative, including option payroll taxes of $13 and $0 for the three months ended December 31, 2004 and 2003, respectively, and $357 and $256 for the twelve months ended December 31, 2004 and 2003, respectively |
| 4,188 |
| 3,256 |
| 16,452 |
| 12,031 |
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Information technology |
| 1,929 |
| 2,049 |
| 9,171 |
| 8,898 |
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Depreciation and amortization |
| 5,358 |
| 2,324 |
| 13,501 |
| 11,533 |
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Restructuring charge/(reversal) |
| — |
| (49 | ) | (12 | ) | (186 | ) | ||||
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Total operating expenses |
| 44,764 |
| 29,866 |
| 167,733 |
| 137,927 |
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Operating income |
| 5,133 |
| 1,950 |
| 30,422 |
| 8,018 |
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Other income: |
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Interest income |
| 1,316 |
| 935 |
| 5,112 |
| 2,474 |
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Interest expense |
| (1,291 | ) | (494 | ) | (3,722 | ) | (907 | ) | ||||
Other |
| (6 | ) | — |
| 70 |
| — |
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Total other income |
| 19 |
| 441 |
| 1,460 |
| 1,567 |
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Earnings before income taxes and equity in income (loss) of investees |
| 5,152 |
| 2,391 |
| 31,882 |
| 9,585 |
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Income tax benefit |
| 260 |
| — |
| 193 |
| — |
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Equity in income (loss) of investees, net |
| (414 | ) | (163 | ) | (566 | ) | 2,331 |
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Net income |
| 4,998 |
| 2,228 |
| 31,509 |
| 11,916 |
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Preferred stock dividend |
| — |
| — |
| (1,512 | ) | (1,491 | ) | ||||
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Net income applicable to common stockholders |
| $ | 4,998 |
| $ | 2,228 |
| $ | 29,997 |
| $ | 10,425 |
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Net income applicable to common stockholders per basic common share |
| $ | 0.13 |
| $ | 0.06 |
| $ | 0.78 |
| $ | 0.28 |
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Weighted average number of basic common shares outstanding |
| 38,775 |
| 38,019 |
| 38,304 |
| 37,804 |
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Net income applicable to common stockholders per diluted common share |
| $ | 0.12 |
| $ | 0.06 |
| $ | 0.76 |
| $ | 0.27 |
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Weighted average number of diluted common shares outstanding |
| 40,449 |
| 40,107 |
| 42,327 |
| 39,009 |
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