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)

	December 31, 2004			December 31, 2003
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	93,775		$	93,732
Restricted cash	23,572			22,485
Short-term investments	130,307			151,736
Accounts receivable, net of allowance for doubtful accounts of $1,390 and $794, respectively	18,314			10,782
Prepaid expenses and other current assets	4,365			4,778
Total current assets	270,333			283,513
Property and equipment, net	15,827			16,524
Intangible assets, net	98,908			7,053
Goodwill	138,859			8,779
Other assets	18,155			21,915
Total assets	$	542,082		$	337,784
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	40,612		$	25,061
Accrued expenses	23,649			21,031
Deferred merchant bookings	5,641			—
Other current liabilities	4,475			3,522
Total current liabilities	74,377			49,614
Deferred taxes	25,668			—
Other long-term liabilities	692			1,069
Minority interest	4,314			—
Long-term debt	224,418			124,524
Total liabilities	329,469			175,207
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK	13,470			13,470
Stockholders’ equity
Common stock	317			306
Treasury stock	(350,628		)	(350,628		)
Additional paid-in capital	2,064,224			2,055,607
Deferred compensation	(1,264		)	(1,408		)
Accumulated deficit	(1,525,447		)	(1,555,444		)
Accumulated other comprehensive income	11,941			674
Total stockholders’ equity	199,143			149,107
Total liabilities and stockholders’ equity	$	542,082		$	337,784

priceline.com Incorporated

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2004			December 31, 2003			December 31, 2004			December 31, 2003
Merchant revenues	$	179,669		$	176,319		$	872,994		$	852,454
Agency revenues	14,734			3,178			38,601			7,554
Other revenues	565			670			2,777			3,653
Total revenues	194,968			180,167			914,372			863,661
Cost of merchant revenues	143,827			148,351			714,822			717,716
Cost of agency revenues	1,244			—			1,395			—
Cost of other revenues	—			—			—			—
Total costs of revenues	145,071			148,351			716,217			717,716
Gross profit	49,897			31,816			198,155			145,945
Operating expenses:
Advertising - Offline	6,018			6,028			33,476			25,125
Advertising - Online	8,518			4,064			27,480			17,123
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
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
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
Information technology	1,929			2,049			9,171			8,898
Depreciation and amortization	5,358			2,324			13,501			11,533
Restructuring charge/(reversal)	—			(49		)	(12		)	(186		)
Total operating expenses	44,764			29,866			167,733			137,927
Operating income	5,133			1,950			30,422			8,018
Other income:
Interest income	1,316			935			5,112			2,474
Interest expense	(1,291		)	(494		)	(3,722		)	(907		)
Other	(6		)	—			70			—
Total other income	19			441			1,460			1,567
Earnings before income taxes and equity in income (loss) of investees	5,152			2,391			31,882			9,585
Income tax benefit	260			—			193			—
Equity in income (loss) of investees, net	(414		)	(163		)	(566		)	2,331
Net income	4,998			2,228			31,509			11,916
Preferred stock dividend	—			—			(1,512		)	(1,491		)
Net income applicable to common stockholders	$	4,998		$	2,228		$	29,997		$	10,425
Net income applicable to common stockholders per basic common share	$	0.13		$	0.06		$	0.78		$	0.28
Weighted average number of basic common shares outstanding	38,775			38,019			38,304			37,804
Net income applicable to common stockholders per diluted common share	$	0.12		$	0.06		$	0.76		$	0.27
Weighted average number of diluted common shares outstanding	40,449			40,107			42,327			39,009