Priceline.com Reports Financial Results for 1st Quarter 2013
Priceline.com Incorporated reported 1st quarter 2013 financial results for The Priceline Group. First quarter gross travel bookings for the Group were $9.2 billion, an increase of 36.4% over a year ago (approximately 37% on a local currency basis).
NORWALK, Conn., May 9, 2013. Priceline.com Incorporated (NASDAQ: PCLN) today reported 1stquarter 2013 financial results for The Priceline Group (the “Group”). First 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 $9.2 billion, an increase of 36.4% over a year ago (approximately 37% on a local currency basis).
The Group's gross profit for the 1st quarter was $1.01 billion, a 35.8% increase from the prior year. International operations contributed gross profit in the 1st quarter of $894 million, a 45.1% increase versus a year ago (approximately 45% on a local currency basis). The Group's operating income in the 1st quarter was $310 million, a 28.3% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 1st quarter of $244 million, or $4.76 per diluted share, which compares to $182 million or $3.54 per diluted share, in the same period a year ago.
Non-GAAP gross profit for the 1st quarter was $1.03 billion, a 38.6% increase from the prior year. Non-GAAP net income in the 1st quarter was $297 million, a 34.6% increase versus the prior year. Non-GAAP net income was $5.76 per diluted share, compared to $4.28 per diluted share a year ago. FactSet consensus for the 1st quarter 2013 was $5.27 per diluted share. Adjusted EBITDA for the 1st quarter 2013 was $368 million, an increase of 35.6% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides definitions 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.
“Unit growth in the Priceline Group's global hotel business held steady in the 1st quarter at 38% versus the prior year,” said Jeffery H. Boyd, Chairman and CEO of The Priceline Group. “International gross bookings growth of 43% in the 1st quarter reflects continued strong performance of our international brands around the world. Domestic gross bookings growth accelerated in the quarter with improving results in our hotel and rental car businesses, aided by the roll out last year of our Express DealsSM semi-opaque service."
Looking forward, Mr. Boyd said, “We continue to see economic uncertainty in certain regions, and competition in the online travel sector remains intense. We are encouraged by the solid growth our businesses are delivering globally and will continue our investments in people, marketing, geographic expansion, content and innovation to lay the foundation for future growth."
The Priceline Group said it was targeting the following for 2nd quarter 2013:
• Year-over-year increase in total gross travel bookings of approximately 30% - 37% (an increase of approximately 27% - 34% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 36% - 43% (an increase of approximately 33% - 40% 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 15% - 22%.
• Year-over-year increase in gross profit of approximately 26% - 33%.
• Adjusted EBITDA of approximately $560 million to $595 million.
• Non-GAAP net income per diluted share between $8.87 and $9.45.
The Company believes that concerns related to sovereign debt and the viability of the Euro have negatively impacted historical operating results and may 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.
Non-GAAP guidance for the 2nd quarter 2013:
• excludes non-cash amortization expense of intangibles,
• excludes non-cash stock-based employee compensation expense,
• excludes non-cash interest expense and gains or losses on early debt extinguishment, if any, related to cash settled convertible debt,
• excludes the impact, if any, of significant charges or benefits associated with judgments, rulings and/or settlements related to travel transaction tax (e.g., hotel occupancy taxes,
excise taxes, sales taxes, etc.) proceedings,
• excludes non-cash income tax expense and reflects the impact on income taxes of certain of the non-GAAP adjustments,
• includes the additional impact of the non-GAAP adjustments described above on net income (loss) attributable to noncontrolling interests, and
• includes the dilutive impact of unvested restricted stock units and performance share units because non-GAAP net income has been adjusted to exclude stock-based employee compensation.
In addition to the adjustments above, adjusted EBITDA excludes depreciation and amortization expense, interest income, interest expense, net income (loss) attributable to noncontrolling interests and income taxes and includes the impact of foreign currency transactions and other expenses.
When aggregated, the non-GAAP adjustments are expected to increase adjusted EBITDA over GAAP net income by approximately $162 million in the 2nd quarter 2013. In addition, the non-GAAP adjustments are expected to increase non-GAAP net income over GAAP net income by approximately $54 million in the 2nd quarter 2013. The Group estimates GAAP net income per diluted share between approximately $7.87 and $8.45 for the 2nd quarter 2013