NORWALK, Conn., February 26, 2013. . . Priceline.com Incorporated (Nasdaq: PCLN) today reported 4th quarter and full-year 2012 financial results for the Priceline Group (the “Group”). Fourth quarter gross travel bookings for the Group, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers, were $6.6 billion, an increase of 32.9% over a year ago (approximately 35% on a local currency basis).
The Group's gross profit for the 4th quarter was $940 million, a 29.7% increase from the prior year. International operations contributed gross profit in the 4th quarter of $836 million, a 37.3% increase versus a year ago (approximately 39% on a local currency basis). The Group's operating income in the 4th quarter was $374 million, a 23.2% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 4th quarter of $289 million, or $5.63 per diluted share, which compares to $226 million or $4.41 per diluted share, in the same period a year ago.
Non-GAAP gross profit for the 4th quarter was $956 million, a 31.9% increase from the prior year. Non-GAAP net income in the 4th quarter was $349 million, a 25.9% increase versus the prior year. Non-GAAP net income was $6.77 per diluted share, compared to $5.37 per diluted share a year ago. FactSet consensus for the 4th quarter 2012 was $6.53 per diluted share. Adjusted EBITDA for the 4th quarter 2012 was $426 million, an increase of 23.7% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of non-GAAP financial measures in this press release and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
For full-year 2012, the Group had gross travel bookings of $28.5 billion, a 31.4% increase compared to 2011 (approximately 37% on a local currency basis). Gross profit for the Group in 2012 was $4.1 billion, a 32.6% increase from the prior year. International operations contributed full-year gross profit of $3.6 billion, a 38.8% increase versus the prior year (approximately 48% growth on a local currency basis). The Group's 2012 operating income was $1.83 billion, a 30.8% increase from the prior year. The Group had GAAP net income for full-year 2012 of $1.42 billion, or $27.66 per diluted share, which compares to $1.06 billion or $20.63 per diluted share in 2011.
Non-GAAP EBITDA for 2012 was $1.97 billion, an increase of 30.6% over a year ago. Non-GAAP net income for 2012 was $1.61 billion or $31.28 per diluted share, compared to $23.45 per diluted share a year ago.
“The Priceline Group finished 2012 with a strong 4th quarter showing improving unit growth in hotel room and rental car day reservations,” said Jeffery H. Boyd, Chairman and CEO of The Priceline Group. “International gross bookings growth of 43% on a local currency basis in the 4th quarter evidenced the resilience of the business in 2012 despite economic uncertainty in our core European market. Looking forward, Mr. Boyd said “The Group's brands are off to a good start in 2013, with greater supply and geographic reach, a new offline marketing experiment for Booking.com in the United States and a new ad campaign for priceline.com featuring Kaley Cuoco together with 1 of 12William Shatner's Negotiator and a mandate to further build and diversify the global reach of our business. While global economic conditions remain a concern, we are excited about our long-term outlook.”
The Priceline Group said it was targeting the following for 1st quarter 2013:
• Year-over-year increase in total gross travel bookings of approximately 30% - 37% (an increase of approximately 29% - 36% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 36% - 43% (an increase of approximately 35% - 42% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 5% - 10%.
• Year-over-year increase in revenue of approximately 17% - 24%.
• Year-over-year increase in gross profit of approximately 30% - 37%.
• Adjusted EBITDA of approximately $316 million to $346 million.
• Non-GAAP net income per diluted share of $4.90 to $5.30.
The Company believes that concerns related to sovereign debt and the viability of the Euro have negatively impacted historical operating results and are likely to impact future results. Given the uncertainty surrounding worldwide economic conditions, particularly in Europe where much of the Company's business is concentrated, the Company believes the variability around its guidance is elevated.
