NORWALK, Conn., February 27, 2012. . . Priceline.com Incorporated (Nasdaq: PCLN) today reported 4th quarter and full-year 2011 financial results for the Priceline 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 consumers, were $4.96 billion, an increaseof 51.8% over a year ago.
The Group had revenues in the 4th quarter of $991 million, a 35.5% increase over a year ago.The Group's international operations contributed revenues in the 4th quarter of $610 million, a 62.7% increase versus a year ago (approximately 66% on a local currency basis). The Group's gross profit for the 4th quarter was $725 million, a 51.5% increase from the prior year.
International operations contributed gross profit in the 4th quarter of $609 million, a 62.9% increase versus a year ago (approximately 66% growth on a local currency basis). The Group's operating income in the 4th quarter was $304 million, a 60.8% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 4th quarter of $226.0 million, or $4.41 per diluted share, which compares to $135.7 million or $2.66 per diluted share, in the same period a year ago.
Non-GAAP net income in the 4th quarter was $276.8 million, a 58.1% increase versus the prior year. Non-GAAP net income was $5.37 per diluted share, compared to $3.40 per diluted share a year ago. First Call analyst consensus for the 4th quarter 2011 was $5.05 per diluted share. Adjusted EBITDA for the 4th quarter 2011 was $344 million, an increase of 54.3% 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 2011, the Group had revenues of $4.36 billion, a 41.2% increase over 2010. International operations contributed full-year revenues of $2.56 billion, a 77.5% increase versus a year ago (approximately 70% on a local currency basis). Gross profit for the Group in 2011 was $3.08 billion, a 61.3% increase from the prior year. International operations contributed full year gross profit of $2.56 billion, a 77.8% increase versus the prior year (approximately 70% growth on a local currency basis). The Group’s 2011 operating income was $1.40 billion, a 77.8% increase from the prior year. The Group had GAAP net income applicable to common shareholders for full-year 2011 of $1.06 billion, or $20.63 per diluted share, which compares to $527.5 million or $10.35 per diluted share in 2010. Adjusted EBITDA for 2011 was $1.51 billion, an increase of 67.6% over a year ago. Non-GAAP net income for 2011 was $1.21 billion or $23.45 per diluted share, compared to $13.49 per diluted share a year ago.
“The Priceline Group experienced a strong 4th quarter for our travel reservation services.” said Jeffery H. Boyd, President and Chief Executive Officer of the Priceline Group. “Globally, the Group grew room night reservations by 53% as compared to 47% in the 3rd quarter. We believe that each of our brands, Booking.com, Agoda and priceline.com, gained share in the retail hotel room reservations market, while our Name Your Own Price hotel business in the United States continued to be impacted by increased competition in the discount market.” Mr. Boyd continued, “I’m pleased to highlight that during the 4th quarter, we rebranded the TravelJigsaw business as“rentalcars.com.” Our worldwide rental car reservation service delivered 34% growth in rental car days in the 4th quarter compared to the prior year, with rentalcars.com growing well in excess of that rate. Rentalcars.com had an outstanding year and we are excited about the global online rental car opportunity.” Looking forward, Mr. Boyd said, “The Priceline Group’s global hotel business continues to build share and is experiencing strong growth in Asia and other newer markets. While macroeconomic concerns persist, we will continue investing in growing the number of hotels and other accommodations around the world available on our websites, providing great content, building distribution and providing superior service to our customers.”
The Priceline Group noted that, consistent with prior disclosure, it expected future growth rates to decline quarter to quarter due to the sheer size of the business and that weak economic conditions in Europe have resulted in slowing growth in southern European countries and increasing cancellation rates. The Group said it was targeting the following for 1st quarter 2012:
• Year-over-year increase in total gross travel bookings of approximately 33% - 38%.
• Year-over-year increase in international gross travel bookings of approximately 41% -
• 46% (an increase of approximately 43% - 48% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 10%.
• Year-over-year increase in revenue of approximately 22% to 27%.
• Year-over-year increase in gross profit of approximately 40% to 45%.
• Adjusted EBITDA of approximately $243 million to $253 million.
• Non-GAAP net income of between $3.80 and $3.90 per diluted share.