BEIJING, Aug. 13 /Xinhua-PRNewswire/ -- eLong, Inc. (NASDAQ:LONG),
a leading online travel service provider in China, today reported
unaudited financial results for the second quarter ended June 30,
2007. Business Highlights for the Second Quarter 2007. -- Travel
revenues, comprised of hotel, air and other travel service
revenues, increased 16% to RMB75.4 million for the second quarter
2007 compared with the prior year period. -- Travel revenues by
service line for the second quarters of 2007 and 2006 were as
follows (figures in RMB 000's): % % Y/Y Q2 2007 Total Q2 2006 Total
Growth Hotel commissions 60,162 79.8 % 53,753 82.7 % 12 % Air
ticketing commissions 13,850 18.4 % 9,641 14.8 % 44 % Other travel
revenue 1,400 1.9 % 1,629 2.5 % -14 % Total travel revenue 75,412
100 % 65,023 100 % 16 % -- The Company recorded an operating loss
of RMB 2.2 million for the second quarter, compared with an
operating loss of RMB1.2 million for the second quarter of 2006,
with greater sales and marketing and service development expense
offsetting the Company's increased gross profit. -- The Company
recorded a net loss of RMB 1.8 million for the second quarter,
compared with a net income of RMB10.2 million for the second
quarter of 2006. Net income decreased RMB 12.0 million primarily
due to prior year other income of RMB 8.5 million related to
interest income and unrealized exchange loss and a gain on the sale
of discontinued operations of RMB 2.6 million. Excluding these
items, net loss for the second quarter 2006 would have been RMB 0.9
million. -- As of June 30, 2007 cash and cash equivalents were
RMB1.17 billion (US$154 million), down 2% from RMB1.20 billion at
December 31, 2006. Cash balances decreased RMB28.6 million
primarily due to the majority of our cash being held in US$ and the
resulting impact of the appreciation of the RMB. 'While eLong's
top-line results were in line with our expectations, we are not
nearly satisfied with our performance. We have begun a
comprehensive turnaround program to improve the Company's
execution,' said Henrik Kjellberg, Chairman and interim Chief
Executive Officer of eLong, Inc. 'Management is committed to making
structural improvements in our hotel and air products, our customer
service and our overall management talent. It will take time to
regain momentum, but we are confident that eLong can successfully
improve its performance and better leverage the growing Chinese
travel market.' 'We are focused on striking an optimum balance
between the need for fiscal discipline and reigniting our growth
momentum,' said Chris Chan, eLong's Chief Financial Officer. 'We
remain confident in the long-term opportunity of China's online
travel market, and over time we seek to drive financial gains from
our structural improvements to the Company's bottom- line.'
Business Results Total and travel revenues increased 17% and 16%,
respectively, for the second quarter of 2007 compared with the
prior year period, reflecting continued growth in our core hotel
commissions business and the 44% increase in air ticketing
commissions. Hotel Hotel commission revenue increased 12%
year-over-year primarily due to higher room volume. Room nights
booked through eLong increased 11% to 922,000, while commission per
room night remained largely unchanged at RMB65. eLong has grown its
hotel offering over 28% since second quarter 2006, and now features
discounted rates at nearly 4,500 hotels in over 300 cities across
China. Air Air ticketing commission revenue increased 44% primarily
due to a 41% increase in air segments to 347,000, as well as a
modest 2% increase in commission per air ticket to RMB40.
Profitability Gross margin in the second quarter of 2007 was 73.5%,
a decrease of 364 basis points compared with 77.1% in the prior
year period. Gross margin decreased due to the increased mix of
lower margin air commissions and increased compensation expense
related to investments in our call center talent and
infrastructure. Operating expenses for the second quarter of 2007
and 2006 were as follows (figures in RMB 000's): % % Y/Y Q2 2007
Revenue Q2 2006 (1) Revenue Growth Service development 12,257 15.6
% 10,094 15.1 % 21 % Sales and marketing 29,313 37.4 % 25,302 37.9
% 16 % General and administrative 13,540 17.3 % 13,355 20.0 % 1 %
Business tax and surcharges 4,026 5.1 % 3,643 5.5 % 11 % Writedown
of property and equipment and intangibles 526 0.7 % -- 0.0 % N/A
Amortization of intangibles 265 0.3 % 265 0.4 % 0 % Total operating
expenses 59,927 76.4 % 52,659 78.8 % 13.8 % Note 1 - Effective
second quarter 2006, prior period sales and marketing, service
development and business tax and surcharge expenses have been
revised to exclude expenses related to our discontinued operations
Service development, sales and marketing, and general and
administrative expenses increased 13.0% during the second quarter,
while total operating expenses increased 13.8%. Service development
expense is composed of expenses related to technology and product
offering, including our website, the platform and the Company's air
and hotel products. Second quarter service development expense
increased 21% and increased 50 basis points as a percentage of
revenue to 15.6% because we maintained the pace of investment in
our air booking and online payment platforms, and invested in other
product enhancements. Sales and marketing expense increased 16%,
and decreased 50 basis points as a percentage of revenue to 37.4%.
The increased expense was due to increases in business volume.
General and administrative expense increased 1%. General and
administrative expenses as a percentage of revenue decreased 270
basis points to 17.3% in the second quarter. Operating loss was
RMB2.2 million as compared to an operating loss of RMB1.2 million
in second quarter of 2006, an increased loss of RMB1.0 million
primarily due to lower percent gross margin resulting from the
higher air revenue mix, as well as higher spending in sales and
marketing and service development expenses. Other loss, which
represents interest income, unrealized exchange gains/losses and
other income/expense, was RMB1.1 million in the second quarter of
2007, primarily due to an unrealized foreign exchange loss of
RMB15.4 million resulting from nearly 1.4% appreciation in the
Renminbi from the prior quarter. This exchange loss was partially
offset by net interest income of RMB14.1 million in the second
quarter of 2007. The Company recorded a net loss of RMB1.8 million
for the second quarter compared to a net income of RMB10.2 million
in the prior year period, an increased loss of RMB12.0 million
primarily due to RMB8.9 million in higher continuing operating loss
in the second quarter of 2007 and RMB3.1 million of income from
discontinued operations which benefited the second quarter of 2006.
Our US GAAP diluted loss per ADS for the second quarter of 2007 was
RMB0.08 compared to a diluted income per ADS of RMB0.38 in the
prior year period. Management Addition eLong is pleased to welcome
Thomas Chen as Vice-President of Marketing, whose responsibilities
include eLong branding, product promotions, customer retention and
analysis, loyalty programs, public relations and market research.
Mr. Chen has ten years of brand management and FMCG marketing
experience, of which eight years for SC Johnson & Son. He has
worked in mainland China for four years, most recently as the
marketing director for the Ting Hsin chain restaurant business. Mr.
Chen, who hails from Taiwan, holds a master degree in Integrated
Marketing from Northwestern University. Business Outlook eLong
expects total revenues for the third quarter of 2007 within the
range of RMB79.0 million to RMB87.0 million, an increase of 6% to
17% from the third quarter of 2006. Note to the Unaudited Interim
Consolidated Financial Information Financial information in this
press release is unaudited and was prepared in accordance with
generally accepted accounting principles in the United States.
eLong suspended its vacation package service business on July 12,
2007. Safe Harbor Statement It is currently expected that the
Business Outlook will not be updated until the release of eLong's
next quarterly earnings announcement; however, eLong reserves the
right to update its Business Outlook at any time for any reason.
Statements in this press release concerning eLong's future
business, operating results and financial condition are
"forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the
Private Securities Litigation Reform Act of 1995. Words such as
'anticipate,' 'believe,' 'estimate,' 'expect,' 'forecast,'
'intend,' 'may,' 'plan,' 'project,' 'predict,' 'should' and 'will'
and similar expressions as they related to the Company are intended
to identify such forward-looking statements, but are not the
exclusive means of doing so. These forward looking statements are
based upon management's current views and expectations with respect
to future events and are not a guarantee of future performance.
Furthermore, these statements are, by their nature, subject to a
number of risks and uncertainties that could cause actual
performance and results to differ materially from those discussed
in the forward-looking statements as a result of a number of
factors. Factors that could affect the Company's actual results and
cause actual results to differ materially from those included in
any forward-looking statement include, but are not limited to,
eLong's historical operating losses, declines or disruptions in the
travel industry, the recurrence of SARS, an outbreak of bird flu,
eLong's reliance on having good relationships with hotel suppliers
and airline ticket suppliers, our reliance on the Travelsky GDS
system for our air business, the possibility that eLong will be
unable to timely comply with Section 404 of the Sarbanes-Oxley Act
of 2002, the risk that eLong will not be successful in competing
against new and existing competitors, risks associated with
Expedia, Inc.'s (NASDAQ:EXPE) majority ownership interest in eLong
and the integration of eLong's business with that of Expedia's,
subsequent fluctuations of the Chinese currency, changes in eLong's
management team and other key personnel and other risks outlined in
eLong's filings with the U.S. Securities and Exchange Commission
(or SEC), including eLong's Form 20-F filed with the SEC in
connection with the Company's fiscal year 2006 results. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of their dates. Conference Call
eLong will host a conference call to discuss its second quarter and
fiscal 2007 earnings at August 13, 2007, 8:00 pm Eastern
(Beijing/Hong Kong time: August 14, 2007 at 8:00 am). The
management team will be on the call to discuss quarterly results
and highlights and to answer questions. The toll- free number for
U.S. participants is +1-800-365-8460. The dial-in number for Hong
Kong participants is +852-2258-4000. International participants can
dial +1-210-795-0492. Passcode ELONG. A replay of conference call
will be available for one day starting from 9:30 pm Eastern Time on
August 13, 2007. US toll-free dial-in number: +1-800- 477-5518,
international dial-in number: +1-203-369-4576. Passcode: 734540.
Additionally, a live and archived web cast of this call will be
available on the Investor Relations section of the eLong web site
at http://ir.elong.net/ for three months. About eLong, Inc. eLong,
Inc. (NASDAQ:LONG) is a leading online travel company in China.
Headquartered in Beijing, eLong has a national presence across
China. eLong uses web-based distribution technologies and a 24-hour
call center to provide consumers with access to travel reservation
services. Aiming to enrich people's lives through the freedom of
independent travel, eLong empowers consumers to make informed
choices by providing a one-stop travel solution and consolidated
travel tools and information such as maps, virtual tours and user
ratings. eLong has the capacity to fulfill air ticket reservations
in over 55 major cities across China. In addition to choice of a
wide hotel selection in the Greater China region, eLong offers
Chinese consumers the ability to make bookings at international
hotels in over 140 destinations worldwide. eLong operates the
websites http://www.elong.com/ and http://www.elong.net/ . eLong,
Inc. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED, IN THOUSANDS
EXCEPT PER SHARE AMOUNTS) IN LOCAL CURRENCY Three Months Ended Six
Months Ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, 2007 2007
2006 2007 2006 RMB RMB RMB RMB RMB Revenues Hotel commissions
60,162 48,879 53,753 109,042 95,837 Air ticketing commissions
13,850 12,050 9,641 25,900 17,650 Other travel revenue 1,400 2,077
1,629 3,476 3,086 Travel 75,412 63,006 65,023 138,418 116,573 Other
3,019 2,275 1,770 5,295 3,674 Total revenues 78,431 65,281 66,793
143,713 120,247 Cost of services (20,701) (17,701) (15,285)
(38,403) (28,470) Gross profit 57,730 47,580 51,508 105,310 91,777
Operating expenses Service development (12,257) (10,594) (10,094)
(22,852) (20,635) Sales and marketing (29,313) (27,020) (25,302)
(56,331) (47,207) General and administrative (13,540) (11,188)
(13,355) (24,728) (33,690) Amortization of intangibles (265) (265)
(265) (530) (530) Writedown of PP&E (526) -- -- (526) --
Business tax and surcharges (4,026) (3,675) (3,643) (7,701) (6,656)
Total operating expenses (59,927) (52,742) (52,659) (112,668)
(108,718) Loss from operations (2,197) (5,162) (1,151) (7,358)
(16,941) Other income/(loss) (1,053) 4,329 8,497 3,276 12,761
Income/(loss) before income tax expense (3,250) (833) 7,346 (4,082)
(4,180) Income tax benefit/(expense ) 1,433 (52) (250) 1,380 (787)
Income/(loss) from continuing operations (1,817) (885) 7,096
(2,702) (4,967) Discontinued operations Income/(loss) from
discontinued operations -- 112 526 112 114 Income tax benefit
/(expense) of discontinued operations -- (8) (48) (8) (42) Gain on
sale of discontinued operations -- -- 2,650 -- 2,650 Total
discontinued operations -- 104 3,128 104 2,722 Net income/(loss)
before cumulative effect of change in accounting principles (1,817)
(781) 10,224 (2,598) (2,245) Cumulative effect of change in
accounting principles -- -- -- -- 282 Net income/(loss) (1,817)
(781) 10,224 (2,598) (1,963) Basic income/(loss) per share
Continuing operations (0.04) (0.02) 0.14 (0.05) (0.09) Discontinued
operations 0.00 0.00 0.06 0.00 0.05 Cumulative effect of change in
accounting principles 0.00 0.00 0.00 0.00 0.00 Basic income/(loss)
per share (0.04) (0.02) 0.20 (0.05) (0.04) Diluted income/(loss)
per share Continuing operations (0.04) (0.02) 0.13 (0.05) (0.09)
Discontinued operations 0.00 0.00 0.06 0.00 0.05 Cumulative effect
of change in accounting principles 0.00 0.00 0.00 0.00 0.00 Diluted
income/(loss) per share (0.04) (0.02) 0.19 (0.05) (0.04) Basic
income/(loss) per ADS Continuing operations (0.08) (0.04) 0.28
(0.10) (0.18) Discontinued operations 0.00 0.00 0.12 0.00 0.10
Cumulative effect of change in accounting principles 0.00 0.00 0.00
0.00 0.00 Basic income/(loss) per ADS (0.08) (0.04) 0.40 (0.10)
(0.08) Diluted income/(loss) per ADS Continuing operations (0.08)
(0.04) 0.26 (0.10) (0.18) Discontinued operations 0.00 0.00 0.12
0.00 0.10 Cumulative effect of change in accounting principles 0.00
0.00 0.00 0.00 0.00 Diluted income/(loss) per ADS (0.08) (0.04)
0.38 (0.10) (0.08) Shares used in computing basic net income/(loss)
per share 50,732 50,685 50,374 50,709 50,364 Shares used in
computing diluted net income/(loss) per share 50,732 50,685 53,870
50,709 50,364 Note that 1ADS = 2 shares * Share-based compensation
charges included are as follows: 1,760 2,769 2,519 4,529 6,753 Cost
of services 29 21 42 50 106 Service development 569 677 669 1,246
1,437 Sales and marketing 83 201 134 284 334 General and
administrative 1,079 1,870 1,674 2,949 4,876 *Unrealized Foreign
exchange losses 15,421 9,614 2,772 25,034 9,547 eLong, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED, IN THOUSANDS
EXCEPT PER SHARE AMOUNTS) IN U.S. DOLLARS Three Months Ended Six
Months Ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, 2007 2007
2006 2007 2006 US$ US$ US$ US$ US$ Revenues Hotel commissions 7,904
6,329 6,724 14,325 11,988 Air ticketing commissions 1,819 1,560
1,206 3,403 2,208 Other travel revenue 184 269 204 457 386 Total
travel revenue 9,907 8,158 8,134 18,185 14,582 Other 397 295 221
696 460 Total revenues 10,304 8,453 8,355 18,881 15,042 Cost of
services (2,720) (2,292) (1,912) (5,045) (3,562) Gross profit 7,584
6,161 6,443 13,836 11,480 Operating expenses Service development
(1,610) (1,372) (1,262) (3,002) (2,581) Sales and marketing (3,851)
(3,499) (3,164) (7,400) (5,906) General and administrative (1,779)
(1,449) (1,671) (3,249) (4,214) Amortization of intangibles (35)
(34) (33) (70) (66) Writedown of PPE and intangibles (69) -- --
(69) -- Business tax and surcharges (529) (476) (456) (1,012) (833)
Total operating expenses (7,873) (6,830) (6,586) (14,802) (13,600)
Loss from operations (289) (669) (143) (966) (2,120) Other
income/(loss) (138) 561 1,063 429 1,596 Income/(loss) before income
tax expense (427) (108) 920 (536) (524) Income tax
benefit/(expense) 188 (7) (31) 181 (98) Income/(loss) from
continuing operations (239) (115) 889 (355) (622) Discontinued
operations Income/(loss) from discontinued operations -- 15 66 15
14 Income tax benefit /(expense) of discontinued operations -- (1)
(6) (1) (5) Gain on sale of discontinued operations -- -- 331 --
331 Total discontinued operations -- 14 391 14 340 Net
income/(loss) before cumulative effect of change in accounting
principles (239) (101) 1,280 (341) (282) -- -- -- -- -- Cumulative
effect of change in accounting principles -- -- -- -- 35 Net
income/(loss) (239) (101) 1,280 (341) (247) Basic income/( loss)
per share Continuing operations (0.005) (0.003) 0.018 (0.007)
(0.011) Discontinued operations 0.000 0.000 0.008 0.000 0.006
Cumulative effect of change in accounting principles 0.000 0.000
0.000 0.000 0.000 Basic income/(loss) per share (0.005) (0.003)
0.026 (0.007) (0.005) Diluted income/(loss) per share Continuing
operations (0.005) (0.003) 0.016 (0.007) (0.011) Discontinued
operations 0.000 0.000 0.008 0.000 0.006 Cumulative effect of
change in accounting principles 0.000 0.000 0.000 0.000 0.000
Diluted income/(loss) per share (0.005) (0.003) 0.024 (0.007)
(0.005) Basic income/(loss) per ADS Continuing operations (0.011)
(0.005) 0.036 (0.013) (0.023) Discontinued operations 0.000 0.000
0.015 0.000 0.013 Cumulative effect of change in accounting
principles 0.000 0.000 0.000 0.000 0.000 Basic income/(loss) per
ADS (0.011) (0.005) 0.051 (0.013) (0.010) Diluted income/(loss) per
ADS Continuing operations (0.011) (0.005) 0.033 (0.013) (0.023)
Discontinued operations 0.000 0.000 0.015 0.000 0.013 Cumulative
effect of change in accounting principles 0.000 0.000 0.000 0.000
0.000 Diluted income/(loss) per ADS (0.011) (0.005) 0.048 (0.013)
(0.010) Shares used in computing basic net income/(loss) per share
50,732 50,685 50,374 50,709 50,364 Shares used in computing diluted
net income/(loss) per share 50,732 50,685 53,870 50,709 50,364 Note
that 1ADS = 2 shares * Share-based compensation charges included
are as follows: 231 358 315 595 845 Cost of services 4 3 5 7 13
Service development 75 88 84 164 180 Sales and marketing 11 26 17
37 42 General and administrative 142 242 209 387 610 *Unrealised
foreign exchange losses 2,026 1,245 347 3,289 1,194 Note 1: The
conversions of Renminbi (RMB) into United States dollars (USD) as
at the reporting dates are based on the noon buying rate of
USD1.00=RMB7.6120 on June 30, 2007,USD1.00 = RMB7.7232 on March
31,2007 and USD1.00 = RMB7.9943 on June 30, 2006 in the City of New
York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve. No representation is intended to
imply that the RMB amounts could have been, or could be, converted,
realized or settled into U.S. dollars at that rate on the reporting
dates. eLong, Inc. CONSOLIDATED SUMMARY BALANCE SHEET DATA
(UNAUDITED, IN THOUSANDS) Jun. 30, Dec. 31, Jun. 30, Dec. 31, 2007
2006 2007 2006 RMB RMB US$ US$ ASSETS Current assets: Cash and cash
equivalents 1,170,752 1,199,323 153,803 153,679 Restricted cash
11,473 -- 1,507 -- Accounts receivable, net 39,868 28,237 5,238
3,618 Due from related parties 572 2,099 75 269 Deferred income
taxes, net 2,577 708 339 91 Prepaid expenses and other current
assets 11,833 10,384 1,555 1,331 Total current assets 1,237,075
1,240,751 162,517 158,987 Property and equipment, net 41,420 37,809
5,441 4,845 Goodwill 30,000 30,000 3,941 3,844 Intangible assets,
net 3,216 3,746 422 480 Deferred income taxes, net 707 982 93 126
Other non-current assets 19,049 22,029 2,503 2,823 Total assets
1,331,467 1,335,318 174,917 171,105 LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Accounts payable 40,428 32,753 5,311
4,197 Income taxes payable 3,478 16,757 457 2,147 Due to related
parties 4,094 3,374 538 432 Accrued expenses and other current
liabilities 79,496 81,540 10,443 10,448 Total current liabilities
127,496 134,424 16,749 17,225 Other long-term liabilities 327 980
43 126 Deferred income taxes 132 132 17 17 Total liabilities
127,955 135,537 16,809 17,367 Shareholders' equity Ordinary shares
4,199 4,192 552 537 Additional paid-in capital 1,307,487 1,301,312
171,765 166,747 Accumulated other comprehensive income (loss) 118
(29) 16 (4) Accumulated deficit (108,292) (105,694) (14,227)
(13,543) Total shareholders' equity 1,203,512 1,199,781 158,108
153,737 Total liabilities and shareholders' equity 1,331,467
1,335,318 174,917 171,105 For more information, please contact:
eLong, Inc. Investor Relations Tel: +86-10-5860-2288 x6555 Email:
DATASOURCE: eLong, Inc. CONTACT: eLong, Inc., Investor Relations of
eLong, +86-10-5860-2288 x6555, or Web Site: http://www.elong.com/
http://www.elong.net/
Copyright
Elong ADS Representing 2 Ordinary Shares (MM) (NASDAQ:LONG)
Historical Stock Chart
From Sep 2024 to Oct 2024
Elong ADS Representing 2 Ordinary Shares (MM) (NASDAQ:LONG)
Historical Stock Chart
From Oct 2023 to Oct 2024