Priceline.com Reports 3rd Quarter 2003 Financial Results; Hotel Service Sells Record 1.6 Million Room Nights
Grows 41% Year over Year; Rental Car Service Sells Record 1.1 Million Rental Car Days, Grows 43% Year over Year
NORWALK, Conn. - Priceline.com(R) PCLN today reported 3rd quarter 2003 net income of $9.7 million, or $0.24 per share, on revenues of $243.4 million. Net income applicable to common stockholders was $0.21 per share inclusive of a non-cash preferred stock dividend of $1.2 million. Priceline.com's net income of $0.24 per share exceeded First Call analyst consensus of $0.21 per share and came in ahead of priceline.
By comparison, in the 3rd quarter 2002,
"
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 throughpriceline.com 'sLowestfare.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
About
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 $275,307,107priceline.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 thepriceline.com ,lowestfare.com andsites. 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 15,356,893priceline.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 offerspriceline.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 offerspriceline.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 offerspriceline.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.