By comparison, in the 3rd quarter 2002, priceline.com had a net loss applicable to common stockholders of $24.3 million, or $0.64 per share, adjusted for priceline.com's recent reverse stock split, on revenues of $240 million. The 3rd quarter 2002 net loss included $24.2 million in non-cash impairment charges. Gross travel bookings for the 3rd quarter 2002 were $275.3 million.
"Priceline.com achieved several product sales records in the 3rd quarter 2003 and recorded year-over-year increases in gross travel bookings, revenues, gross profit and earnings per share," said Jeffery H. Boyd, priceline.com's President and Chief Executive Officer. "The company achieved solid bottom line results in the 3rd quarter as continued strong hotel and rental car results and expense control offset softening air results."
Priceline.com reported that, during the 3rd quarter 2003 it sold a record 1.6 million hotel room nights, representing a 41 percent increase over the same period a year ago and a record 1.1 million rental car days, representing a 43 percent year-over-year increase.
Priceline.com's gross profit for the 3rd quarter 2003 was $40.6 million, compared to $37.7 million a year ago. Gross margin for the quarter was 16.7 percent, compared to 15.7 percent a year ago. Priceline.com finished the 3rd quarter 2003 with a base of 18.7 million customers, which represents a growth of 22 percent over the last year. The 3rd quarter 2003 also benefited from $1.6 million of other income, which was primarily composed of contribution from pricelinemortgage.
Priceline.com also reported that, in the 3rd quarter 2003, it successfully redesigned and began testing a new airline tickets service that gives customers a choice between naming their own price for a ticket and picking from a wide selection of flight times, airlines and low fares. Regardless of the option the customer chooses, search results are delivered in real-time, making ticket purchases fast and easy.
Other product developments included
- During the 3rd quarter, priceline.com expanded its U.S. hotel business to offer hotel rooms in Australia, Japan, South Korea, Indonesia, Malaysia and Taiwan.
- During the 3rd quarter, priceline.com began offering hotel rooms supplied by TravelWeb LLC through priceline.com's Lowestfare.com retail travel service. Travelweb is the hotel service jointly owned by Marriott, Hyatt, Hilton, Starwood, Intercontinental, priceline.com and Pegasus Systems.
-
Priceline.com introduced an enhanced rental cars product with faster response times, improved user guidance, a new retail option and a best-price guarantee. Under the guarantee, priceline.com will credit the difference if a customer finds a better published price for their rental car purchase.
Looking forward, Mr. Boyd said, "Third quarter results were negatively affected by weakening demand for airline tickets in September, which has continued in the 4th quarter. With the deployment of our new airline ticket service, which was designed to address low bind rates and expand our addressable market, we expect 4th quarter results to be affected by a shift in the mix of our business, with more retail and fewer opaque tickets being sold. We also intend to add an additional $3 million to our advertising budget across the 4th quarter and 1st quarter next year to support the relaunch of our airline ticket product. October revenues were approximately $68 million, down 6% from year-ago levels, and we expect monthly sequential decreases in revenues in November and December, consistent with normal seasonality and the ongoing shift in the mix of our business towards retail airline tickets in which revenue is reported on a net basis. We are also projecting the following operational and financial metrics for the fourth quarter:
- Gross Bookings up by more than 10% year-over-year.
- Gross Margins between 17% - 17.5%.
- Opaque hotel room nights sold up 25% - 30% year-over-year.
- Rental car days sold up 35% - 45% year-over-year.
- GAAP earnings per share of $0.02 - $0.08 cents. (compared to a $0.20 loss in 4th quarter of 2002)
Mr. Boyd continued, "We believe the recent weakness in air demand is addressable. After a nearly full year hiatus, we are beginning to advertise our airline product again and will continue that effort in the 1st quarter 2004. Customer response to our new airline tickets service and its increased choice has been encouraging. For example, while the sale of opaque airline tickets decreased approximately 15% on the new service versus pre-launch levels, retail tickets sold in the latter part of October increased approximately 125% versus pre-launch levels. With continued growth in hotels and rental cars and the repositioning of our airline ticket service, we believe that priceline.com is positioned to sustain growth in gross bookings, gross profit and earnings per share into 2004."
About priceline.com - Priceline.com offers products for sale in two categories: a travel service that offers leisure airline tickets, hotel rooms, rental cars, vacation packages and cruises; and a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee. Priceline.com operates the retail travel Web sites Lowestfare.com and Rentalcars.com. Priceline.com is part-owner of Travelweb LLC. Priceline.com licenses its business model to independent licensees, including pricelinemortgage and certain international licensees.
Information About Forward-Looking Statements - This press release may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals and similar expressions including, without limitation, "may," "will," "should," "could," "expects," "does not currently expect," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "projecting," or "continue," reflecting something other than historical fact are intended to identify forward-looking statements. The following factors, among others, could cause the Company's actual results to differ materially from those described in the forward-looking statements: adverse changes in general market conditions for leisure and other travel products as the result of, among other things, terrorist attacks; adverse changes in the Company's relationships with airlines and other product and service providers including, without limitation, the withdrawal of suppliers from the
priceline.com system; the bankruptcy or insolvency of another major domestic airline; the effects of increased competition; systems-related failures and/or security breaches; the Company's ability to protect its intellectual property rights; losses by the Company and its licensees; final adjustments made in closing the quarter; legal and regulatory risks and the ability to attract and retain qualified personnel. For a detailed discussion of these and other factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, please refer to the Company's most recent Form 10-Q, Form 10-K and Form 8-K filings with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
This supplement is unaudited and intended as a supplement to, and should be read in conjunction with, the Company's audited financial statements and the notes thereto filed with the SEC on Form 10-K and unaudited quarterly financial statements filed with the SEC on Form 10-Q. Certain data have been reclassified in order to conform historical information in a manner consistent with current presentation and has not been audited in this form. Certain presentations within this supplement are not consistent with Generally Accepted Accounting Principles.
priceline.com Incorporated
Consolidated Statements of Operations
In thousands, except per share
data (Unaudited)
Income Statement Analysis 1Q02 2Q02 3Q02 4Q02
--------- ---------
Merchant revenues $259,667 $302,670 $237,961 $195,814
Agency revenues 218 211 160 131
Other revenues 2,000 1,575 1,843 1,356
--------- --------- ---------
Total revenues 261,885 304,456 239,964 197,301
Cost of merchant revenues 219,511 255,972 201,949 166,710
Cost of agency revenues - - -
Cost of other revenues 381 336 274 107
--------- --------- ---------
Total costs of revenues 219,892 256,308 202,223 166,817
--------- --------- ---------
Gross
profit $41,993 $48,148 $37,741 $30,484
--------- --------- ---------
Operating expenses:
Advertising 10,227 12,777 11,649 10,011
Sales and marketing 9,259 10,463 7,667 5,310
Personnel 7,721 8,434 8,397 7,493
General and administrative 3,208 3,536 3,247 3,187
Information technology 3,087 3,198 2,581 3,142
Depreciation and amortization 4,458 4,490 4,850 4,466
Option payroll taxes 104 16 -
Stock based compensation 250 250 250 250
Special charge/(reversal) - (200) -
Restructuring
charge/(reversal) (824) - (92) 4,654
Severance charge/(reversal) - (55) -
Impairment charge - - 24,229
Warrant costs - - -
--------- --------- ---------
Total operating expenses $37,490 $42,909 $62,778 $38,513
Operating income (loss) $4,503 $5,239 ($25,037) ($8,029)
Other income (expenses):
Interest income, net 782 788 656 617
Equity in income of investees,
net 492 245 394
Other (36) 37 164 1
--------- --------- ---------
Total other income $1,238 $1,070 $1,214 $618
Net income (loss) $5,741 $6,309 ($23,823) ($7,411)
Preferred stock dividend (1,854) - (490)
--------- --------- ---------
Net income (loss) applicable to
common stockholders $3,887 $6,309 ($24,313) ($7,411)
========= ========= ========= =========
Net income (loss) applicable to
common stockholders per basic
common share $0.10 $0.16 ($0.64) ($0.20)
========= ========= ========= =========
Net income (loss) applicable to
common stockholders per
diluted common share $0.10 $0.16 ($0.64) ($0.20)
========= ========= ========= =========
(1) Weighted average common
shares:
Basic 37,917 38,280 37,879 37,452
Diluted 39,995 39,917 37,879 37,452
Common shares outstanding, end
of period 38,257 38,298 37,451 37,452
--------- ---------
Gross margin 16.0% 15.8% 15.7% 15.5%
Consolidated Statements of Operations
In thousands, except per share
data
(Unaudited)
Income Statement Analysis 1Q03 2Q03 3Q03
---------
Merchant revenues $198,608 $236,943 $240,584
Agency revenues 1,005 1,476 1,895
Other revenues 874 1,147 962
------------------- ---------
Total revenues 200,487 239,566 243,441
Cost of merchant revenues 167,500 199,072 202,793
Cost of agency revenues - -
Cost of other revenues - -
------------------- ---------
Total costs of revenues 167,500 199,072 202,793
------------------- ---------
Gross
profit $32,987 $40,494 $40,648
------------------- ---------
Operating expenses:
Advertising 11,098 10,774 10,284
Sales and marketing 6,864 7,789 7,242
Personnel 7,512 7,547 7,441
General and administrative 2,819 2,642 3,058
Information technology 2,367 2,604 1,878
Depreciation and amortization 3,912 2,787 2,510
Option payroll taxes - 102 154
Stock based compensation - 70 106
Special charge/(reversal) - -
Restructuring
charge/(reversal) - - (137)
Severance charge/(reversal) - -
Impairment charge - -
Warrant costs 6,638 -
------------------- ---------
Total operating expenses $41,210 $34,315 $32,536
Operating income (loss) ($8,223) $6,179 $8,112
Other income (expenses):
Interest income, net 492 405 229
Equity in income of investees,
net - 1,105 1,389
Other - -
------------------- ---------
Total other income $492 $1,510 $1,618
Net income (loss) ($7,731) $7,689 $9,730
Preferred stock dividend (297) - (1,194)
------------------- ---------
Net income (loss) applicable to
common stockholders ($8,028) $7,689 $8,536
=================== ========= =========
Net income (loss) applicable to
common stockholders per basic
common share ($0.21) $0.20 $0.22
=================== ========= =========
Net income (loss) applicable to
common stockholders per
diluted common share ($0.21) $0.20 $0.21
=================== ========= =========
(1) Weighted average common
shares:
Basic 37,477 37,635 38,044
Diluted 37,477 39,284 39,812
Common shares outstanding, end
of period 37,495 37,925 38,291
---------
Gross margin 16.5% 16.9% 16.7%
Consolidated Statements of Operations
In thousands, except per share
data
(Unaudited)
3Q03 9 months 9 months 9 mos.
vs. 2003 2002 2003
3Q02 -------- ------- vs.
Income Statement Analysis ----- 9 mos.
2002
Merchant revenues 1% $676,135 $800,298 -16%
Agency revenues 1084% 4,376 589 643%
Other revenues -48% 2,983 5,418 -45%
---------
Total revenues 1% 683,494 806,305 -15%
Cost of merchant revenues 0% 569,365 677,432 -16%
Cost of agency revenues - - -
Cost of other revenues -100% - 991 -100%
---------
Total costs of revenues 0% 569,365 678,423 -16%
---------
Gross
profit 8% $114,129 $127,882 -11%
---------
Operating expenses:
Advertising -12% 32,156 34,653 -7%
Sales and marketing -6% 21,895 27,389 -20%
Personnel -11% 22,500 24,552 -8%
General and administrative -6% 8,519 9,991 -15%
Information technology -27% 6,849 8,866 -23%
Depreciation and amortization -48% 9,209 13,798 -33%
Option payroll taxes - 256 120 113%
Stock based compensation -58% 176 750 -77%
Special charge/(reversal) - - (200) -100%
Restructuring
charge/(reversal) 49% (137) (916) -85%
Severance charge/(reversal) - - (55) -100%
Impairment charge -100% - 24,229
Warrant costs - 6,638 -
---------
Total operating expenses -48% $108,061 $143,177 -25%
Operating income (loss) NM $6,068 ($15,295) NM
Other income (expenses):
Interest income, net -65% 1,126 2,226 -49%
Equity in income of investees,
net 253% 2,494 1,131 121%
Other -100% - 165 -100%
---------
Total other income 33% $3,620 $3,522 3%
Net income (loss) NM $9,688 ($11,773) NM
Preferred stock dividend 144% (1,491) (2,344) -36%
---------
Net income (loss) applicable to
common stockholders NM $8,197 ($14,117) NM
========= =========
Net income (loss) applicable to
common stockholders per basic
common share NM $0.22 ($0.37) NM
========= =========
Net income (loss) applicable to
common stockholders per
diluted common share NM $0.21 ($0.37) NM
========= =========
(1) Weighted average common
shares:
Basic 0% 37,726 38,025 -1%
Diluted 5% 38,883 38,025 2%
Common shares outstanding, end
of period 2% 38,291 37,451 2%
----- --------- ---------
Gross margin 16.7% 15.9%
(1) Reflects one-for-six reverse stock split.
priceline.com Europe Ltd.
Statements of Operations (1)
In thousands, except per share data
(Unaudited)
Income Statement Analysis 1Q02 2Q02 3Q02
Merchant revenues $3,075 $3,180 $2,909
Agency revenues 1 -
Other revenues 14 -
Total revenues 3,090 3,180 2,909
Cost of merchant revenues 2,647 2,882 2,574
Cost of agency revenues - -
Cost of other revenues - -
Total costs of revenues 2,647 2,882 2,574
Gross profit $443 $298 $335
Operating expenses:
Advertising 36 301 245
Sales and marketing 329 325 331
Personnel 634 326 591
General and administrative 540 572 794
Information technology 629 527 511
Depreciation and amortization 184 174 175
Restructuring charge - -
Total operating expenses $2,352 $2,225 $2,647
Operating loss ($1,909)($1,927)($2,312)
Other income:
Interest income 6 4 6
Other - - 1
Total other income $6 $4 $7
Net loss ($1,903)($1,923)($2,305)
===================================
Net loss per parent basic and
diluted share ($0.05) ($0.05) ($0.06)
===================================
(2) Weighted average common
shares:
Basic 37,917 38,280 37,879
Diluted 39,995 39,917 37,879
Gross margin 14.3% 9.4% 11.5%
priceline.com Europe Ltd.
Statements of Operations (1)
In thousands, except per share data
(Unaudited)
Income Statement Analysis 4Q02 1Q03 2Q03 3Q03
Merchant revenues $1,894 $1,102 $957 $1,039
Agency revenues - 39 35 42
Other revenues - - -
Total revenues 1,894 1,141 992 1,081
Cost of merchant revenues 1,644 971 850 891
Cost of agency revenues - - -
Cost of other revenues - - -
Total costs of revenues 1,644 971 850 891
Gross profit $250 $170 $142 $190
Operating expenses:
Advertising 272 63 22 32
Sales and marketing 292 66 49 62
Personnel 280 81 23 50
General and administrative 845 626 621 799
Information technology 472 130 10 6
Depreciation and amortization 177 27 -
Restructuring charge 1,790 - - (137)
Total operating expenses $4,128 $993 $725 $812
Operating loss ($3,878) ($823) ($583) ($622)
Other income:
Interest income 3 1 2 3
Other - - -
Total other income $3 $1 $2 $3
Net loss ($3,875) ($822) ($581) ($619)
===================================
Net loss per parent basic and
diluted share ($0.10)($0.02)($0.02)($0.02)
===================================
(2) Weighted average common
shares:
Basic 37,452 37,477 37,635 38,044
Diluted 37,452 37,477 39,284 39,812
Gross margin 13.2% 14.9% 14.3% 17.6%
priceline.com Europe Ltd.
Statements of Operations (1)
In thousands, except per share data
(Unaudited)
3Q03 9 months 9 months 9 mos.
vs. 3Q02 2003 2002 2003
-------- --------- ------- vs.
Income Statement Analysis 9 mos.
2002
Merchant revenues -64% $3,098 $9,164 -66%
Agency revenues - 116 1 11500%
Other revenues - - 14 -100%
Total revenues -63% 3,214 9,179 -65%
Cost of merchant revenues -65% 2,712 8,103 -67%
Cost of agency revenues - - -
Cost of other revenues - - -
Total costs of revenues -65% 2,712 8,103 -67%
Gross profit -43% $502 $1,076 -53%
Operating expenses:
Advertising -87% 117 582 -80%
Sales and marketing -81% 177 985 -82%
Personnel -92% 154 1,551 -90%
General and administrative 1% 2,046 1,906 7%
Information technology -99% 146 1,667 -91%
Depreciation and amortization -100% 27 533 -95%
Restructuring charge - (137) -
Total operating expenses -69% $2,530 $7,224 -65%
Operating loss NM ($2,028)($6,148) NM
Other income:
Interest income -50% 6 16 -63%
Other -100% - 1
Total other income NM $6 $17 NM
Net loss NM ($2,022)($6,131) NM
================
Net loss per parent basic and
diluted share NM ($0.05) ($0.16) NM
================
(2) Weighted average common
shares:
Basic 0% 37,726 38,025 -1%
Diluted 5% 38,883 38,025 2%
Gross margin 15.6% 11.7%
(1) Does not inclide certain intercompany consolidation
adjustments.
(2) Reflects one-for-six reverse stock split.
priceline.com Incorporated
Consolidated Balance Sheets
In thousands
(Unaudited)
ASSETS 3/31/2002 6/30/2002
------------
CURRENT ASSETS:
Cash and cash equivalents $92,051 $98,140
Restricted cash 17,454 19,573
Short-term investments 68,327 62,458
Accounts receivable, net of allowance for
doubtful accounts 20,218 21,977
Prepaid expenses and other current assets 10,544 8,640
------------
Total current assets 208,594 210,788
PROPERTY AND EQUIPMENT, net 31,291 28,205
INTANGIBLE ASSETS, net 631 566
GOODWILL 22,535 22,535
OTHER ASSETS 19,100 20,040
------------
TOTAL ASSETS $282,151 $282,134
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $62,177 $55,422
Accrued expenses 31,750 32,318
Other current liabilities 5,050 4,954
------------
Total current liabilities 98,977 92,694
Long-term accrued expenses 2,365 1,483
Long-term debt -
------------
Total liabilities 101,342 94,177
------------
SERIES B MANDATORILY REDEEMABLE PREFERRED
STOCK 13,470 13,470
------------
STOCKHOLDERS' EQUITY:
Common stock 1,880 1,882
Treasury stock (326,633) (326,633)
Additional paid-in capital 2,032,547 2,033,313
Deferred compensation -
Accumulated deficit (1,540,455) (1,534,145)
Accumulated other comprehensive income - 70
------------
Total stockholders' equity 167,339 174,487
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $282,151 $282,134
============ ===========
priceline.com Incorporated
Consolidated Balance Sheets
In thousands
(Unaudited)
ASSETS 9/30/2002 12/31/2002
-----------
CURRENT ASSETS:
Cash and cash equivalents $66,857 $67,182
Restricted cash 18,174 18,248
Short-term investments 67,478 64,154
Accounts receivable, net of allowance for
doubtful accounts 16,654 13,636
Prepaid expenses and other current assets 9,068 6,348
-----------
Total current assets 178,231 169,568
PROPERTY AND EQUIPMENT, net 25,279 21,413
INTANGIBLE ASSETS, net 998 1,174
GOODWILL 10,517 10,517
OTHER ASSETS 8,793 8,490
-----------
TOTAL ASSETS $223,818 $211,162
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $40,972 $35,375
Accrued expenses 25,861 27,889
Other current liabilities 3,495 2,063
-----------
Total current liabilities 70,328 65,327
Long-term accrued expenses 1,001 715
Long-term debt -
-----------
Total liabilities 71,329 66,042
-----------
SERIES B MANDATORILY REDEEMABLE PREFERRED
STOCK 13,470 13,470
-----------
STOCKHOLDERS' EQUITY:
Common stock 1,884 1,884
Treasury stock (338,410) (338,410)
Additional paid-in capital 2,033,938 2,033,944
Deferred compensation -
Accumulated deficit (1,558,458) (1,565,869)
Accumulated other comprehensive income 65 101
-----------
Total stockholders' equity 139,019 131,650
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $223,818 $211,162
=========== ===========
priceline.com Incorporated
Consolidated Balance Sheets
In thousands
(Unaudited)
ASSETS 3/31/2003 6/30/2003 9/30/2003
CURRENT ASSETS:
Cash and cash equivalents $52,560 $69,292 $115,302
Restricted cash 17,025 16,869 20,750
Short-term investments 70,194 62,992 148,027
Accounts receivable, net of
allowance for doubtful accounts 16,106 23,565 18,809
Prepaid expenses and other current
assets 6,243 8,158 6,737
Total current assets 162,128 180,876 309,625
PROPERTY AND EQUIPMENT, net 17,690 16,106 16,603
INTANGIBLE ASSETS, net 1,086 3,808 3,687
GOODWILL 10,517 10,517 9,534
OTHER ASSETS 16,837 17,699 22,829
TOTAL ASSETS $208,258 $229,006 $362,278
=================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $36,020 $46,863 $38,467
Accrued expenses 24,983 23,296 22,972
Other current liabilities 2,833 2,134 3,100
Total current liabilities 63,836 72,293 64,539
Long-term accrued expenses 422 276 545
Long-term debt - - 125,000
Total liabilities 64,258 72,569 190,084
SERIES B MANDATORILY REDEEMABLE
PREFERRED STOCK 13,470 13,470 13,470
STOCKHOLDERS' EQUITY:
Common stock 1,886 303 306
Treasury stock (338,410) (338,410) (338,410)
Additional paid-in capital 2,040,850 2,048,785 2,055,540
Deferred compensation - (1,619) (1,514)
Accumulated deficit (1,573,897)(1,566,208)(1,557,672)
Accumulated other comprehensive
income 101 116 474
Total stockholders' equity 130,530 142,967 158,724
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $208,258 $229,006 $362,278
=================================
priceline.com Incorporated
Gross Bookings
1Q02 2Q02 3Q02
----------------------- -------------
Merchant $302,563,553 $351,038,533 $271,921,795
Agency 4,250,791 3,744,496 3,385,312
----------------------- -------------
Total $306,814,344 $354,783,029 $275,307,107
priceline.com Incorporated
Gross Bookings
3Q03
vs.
4Q02 1Q03 2Q03 3Q03 3Q02
Merchant $218,100,177 $226,738,785 $267,038,521 $266,639,525 -2%
Agency 10,227,969 20,777,964 30,022,691 33,875,424 901%
Total $228,328,146 $247,516,749 $297,061,212 $300,514,949 9%
Gross Bookings represent the total dollar value of travel booked,
inclusive of taxes and fees, through the priceline.com,
lowestfare.com and rentalcars.com sites.
The information included above is for U.S. operations only.
priceline.com Incorporated
Offer and Customer Activity
Unique Offers: 1Q02 2Q02 3Q02
------------ ------------
New Customer Offers 874,792 964,464 825,026
Repeat Customer Offers 1,530,745 1,819,872 1,707,494
Total Unique
Offers 2,405,537 2,784,336 2,532,520
Repeat customer
offers/ 63.6% 65.4% 67.4%
total unique
offers
Customers
New Customers 874,792 964,464 825,026
Cumulative Customers 13,567,403 14,531,867 15,356,893
priceline.com Incorporated
Offer and Customer Activity
3Q03
vs.
Unique Offers: 4Q02 1Q03 2Q03 3Q03 3Q02
New Customer Offers 759,465 749,009 902,013 920,014 12%
Repeat Customer Offers 1,496,970 1,488,906 1,842,387 1,989,675 17%
Total Unique
Offers 2,256,435 2,237,915 2,744,400 2,909,689 15%
Repeat customer
offers/ 66.3% 66.5% 67.1% 68.4%
total unique
offers
Customers
New Customers 759,465 749,009 902,013 920,014 12%
Cumulative Customers 16,116,358 16,865,367 17,767,380 18,687,394 22%
The information included above is for U.S. operations, and
includes merchant opaque transactions only.
priceline.com Incorporated
Air
1Q02 2Q02 3Q02
----------------------------- ----------
Tickets Sold 866,643 921,201 643,659
Net Unique Offers 1,391,478 1,533,442 1,195,664
Offers Booked 580,555 619,590 441,406
Bind Rate 41.7% 40.4% 36.9%
bind rate = offers booked/net unique offers
priceline.com Incorporated
Air
3Q03
vs.
4Q02 1Q03 2Q03 3Q03 3Q02
Tickets Sold 468,926 439,270 446,143 371,620 -42%
Net Unique Offers 1,225,988 1,107,329 1,274,139 1,171,237 -2%
Offers Booked 341,244 302,306 303,668 260,102 -41%
Bind Rate 27.8% 27.3% 23.8% 22.2%
bind rate = offers
booked/net unique offers
The information included above is for U.S. operations,
and includes merchant opaque transactions only.
priceline.com Incorporated
Hotels
1Q02 2Q02 3Q02
-------- ----------
Room Nights Sold 909,107 1,089,586 1,144,988
Net Unique Offers 629,145 812,285 931,323
Offers Booked 417,306 499,065 539,899
Bind Rate 66.3% 61.4% 58.0%
bind rate = offers booked/net unique offers
priceline.com Incorporated
Hotels
3Q03
vs.
4Q02 1Q03 2Q03 3Q03 3Q02
Room Nights Sold 961,124 1,229,887 1,499,512 1,613,412 41%
Net Unique Offers 748,200 878,619 1,143,870 1,346,410 45%
Offers Booked 463,434 578,867 711,421 785,673 46%
Bind Rate 61.9% 65.9% 62.2% 58.4%
bind rate = offers
booked/net unique offers
The information included above is for U.S. operations, and
includes merchant opaque transactions only.
priceline.com Incorporated
Rental Cars
1Q02 2Q02 3Q02
-------------------------------- --------
Days Sold 738,021 793,616 741,167
Net Unique Offers 303,611 335,059 302,554
Offers Booked 139,776 148,483 143,593
Bind Rate 46.0% 44.3% 47.5%
bind rate = offers booked/net unique offers
priceline.com Incorporated
Rental Cars
3Q03
vs.
4Q02 1Q03 2Q03 3Q03 3Q02
Days Sold 555,465 635,676 827,809 1,061,753 43%
Net Unique Offers 244,278 251,967 326,391 392,042 30%
Offers Booked 110,482 127,147 163,150 208,490 45%
Bind Rate 45.2% 50.5% 50.0% 53.2%
bind rate = offers booked/net
unique offers
The information included above is for U.S. operations,
and includes merchant opaque transactions only.
priceline.com Incorporated
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
September December
30, 31,
ASSETS 2003 2002
-----------
Current assets:
Cash and cash
equivalents $115,302 $67,182
Restricted cash 20,750 18,248
Short-term
investments 148,027 64,154
Accounts
receivable, net of
allowance for
doubtful accounts
of $1,111 and $1,262
at September 30,
2003 and
December 31,
2002,
respectively 18,809 13,636
Prepaid expenses
and other current
assets 6,737 6,348
-----------
Total current
assets 309,625 169,568
Property and equipment, net 16,603 21,413
Intangible assets, net 3,687 1,174
Goodwill 9,534 10,517
Other assets 22,829 8,490
-----------
Total assets $362,278 $211,162
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $38,467 $35,375
Accrued expenses 22,972 27,889
Other current
liabilities 3,100 2,063
-----------
Total current
liabilities 64,539 65,327
Long-term accrued
expenses 545 715
Long-term debt 125,000
-----------
Total
liabilities 190,084 66,042
SERIES B MANDATORILY REDEEMABLE PREFERRED
STOCK 13,470 13,470
Stockholders' equity
Common stock 306 1,884
Treasury stock (338,410) (338,410)
Additional paid-in
capital 2,055,540 2,033,944
Deferred
compensation (1,514)
Accumulated deficit (1,557,672) (1,565,869)
Accumulated other
comprehensive
income 474 101
-----------
Total
stockholders'
equity 158,724 131,650
-----------
Total liabilities
and stockholders'
equity $362,278 $211,162
=========== ===========
priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share
data, unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 30, 30, 30,
2003 2002 2003 2002
------------------
Merchant revenues $240,584 $237,961 $676,135 $800,298
Agency revenues 1,895 160 4,376 589
Other revenues 962 1,843 2,983 5,418
------------------
Total revenues 243,441 239,964 683,494 806,305
Cost of merchant revenues 202,793 201,949 569,365 677,432
Cost of agency revenues - - -
Cost of other revenues - 274 - 991
------------------
Total costs of revenues 202,793 202,223 569,365 678,423
------------------
Gross profit 40,648 37,741 114,129 127,882
------------------
Operating expenses:
Advertising 10,284 11,649 32,156 34,653
Sales and marketing 7,242 7,667 21,895 27,389
Personnel 7,441 8,397 22,500 24,552
General and administrative,
including option payroll
taxes of $154 and $0 for the
three months ended September 30,
2003 and 2002, respectively,
and $256 and $120 for the
nine months ended September 30,
2003 and 2002, respectively 3,212 3,247 8,775 10,111
Information technology 1,878 2,581 6,849 8,866
Depreciation and
amortization 2,510 4,850 9,209 13,798
Stock based compensation 106 250 176 750
Special charge (reversal) - - - (200)
Restructuring charge
(reversal) (137) (92) (137) (916)
Severance charge (reversal) - - - (55)
Impairment charge - 24,229 - 24,229
Warrant costs - - 6,638
------------------
Total operating expenses 32,536 62,778 108,061 143,177
------------------
Operating income (loss) 8,112 (25,037) 6,068 (15,295)
Other income:
Interest income 596 677 1,539 2,269
Interest expense (367) (21) (413) (43)
Equity in income of
investees, net 1,389 394 2,494 1,131
Other - 164 - 165
------------------
Total other income 1,618 1,214 3,620 3,522
------------------
Net income (loss) 9,730 (23,823) 9,688 (11,773)
Preferred stock dividend (1,194) (490) (1,491) (2,344)
------------------
Net income (loss) applicable to
common stockholders $8,536 $(24,313) $8,197 $(14,117)
================== ==================
Net income (loss) applicable to
common stockholders per basic
common share $0.22 $(0.64) $0.22 $(0.37)
================== ==================
Weighted average number of basic
common shares outstanding (1) 38,044 37,879 37,726 38,025
================== ==================
Net income (loss) applicable to
common stockholders per diluted
common share $0.21 $(0.64) $0.21 $(0.37)
================== ==================
Weighted average number of
diluted common shares
outstanding (1) 39,812 37,879 38,883 38,025
================== ==================
(1) Reflects one-for-six reverse stock split.
