BEIJING, Aug. 20, 2012 /PRNewswire-Asia/ -- eLong, Inc.
(Nasdaq: LONG), a leading online travel service provider in
China, today reported unaudited
financial results for the second quarter ended June 30, 2012.
Highlights
- Hotel room nights booked through eLong in the second
quarter increased 65% to 3.7 million room nights compared to
2.2 million in the prior year period. Online hotel bookings
comprised 72% of total hotel bookings, compared to 55% in the
second quarter of 2011.
- Hotel commission revenue for the second quarter
increased 47% to RMB153.8 million
(US$24.2 million), compared to
RMB104.6 million (US$16.2 million) in the second quarter of
2011.
- Net revenues for the second quarter increased 33% to
RMB185.0 million (US$29.1 million), compared to RMB139.1 million (US$21.5
million) in the second quarter of 2011.
- Net income for the second quarter increased to
RMB16.0 million (US$2.5 million), compared to RMB7.1 million (US$1.1
million) in the prior year period.
- Domestic hotel coverage network expanded 52% to over
32,000 domestic hotels as of June 30,
2012, compared to 21,000 as of June
30, 2011. In addition, eLong offers almost 155,000
international hotels through a direct connection to Expedia.
"In the second quarter, eLong delivered a record high number of
hotel room nights, was the clear leader in hotel groupbuy, and
continued to gain market share in the hotel booking segment," said
Guangfu Cui, Chief Executive Officer
of eLong. "In the third quarter, we have launched our largest-ever
marketing campaign to drive awareness of our brand, innovative
products and services."
Business Results
Revenues
Total revenues by product for the second quarter of 2012 as
compared to the same period in 2011 were as follows (in RMB
million):
|
|
Q2
2012
|
|
%
|
|
Q2
2011
|
|
%
|
|
Y/Y
|
Total
|
Total
|
Growth
|
Hotel
reservations
|
|
153.8
|
|
78%
|
|
104.6
|
|
70%
|
|
47%
|
Air
ticketing
|
29.9
|
|
15%
|
|
32.2
|
|
22%
|
|
(7%)
|
Other
|
|
13.3
|
|
7%
|
|
11.7
|
|
8%
|
|
14%
|
Total
revenues
|
|
197.0
|
|
100%
|
|
148.5
|
|
100%
|
|
33%
|
Hotel Reservations
Hotel commission revenue increased 47% in the second quarter of
2012 compared to the same period in 2011, primarily due to higher
volume, partially offset by lower commission per room night. Room
nights booked through eLong in the second quarter increased 65%
year-on-year to 3.7 million. Commission per room night decreased
11% year-on-year, primarily due to the growth of groupbuy and lower
average daily rate hotel room nights. Hotel commission revenue grew
to 78% of total revenues from 70% in the prior year quarter.
Air Ticketing
Air ticketing commission revenue decreased 7% in the second
quarter of 2012 compared to the prior year quarter, driven by an 8%
decrease in air segments to 525,000, partially offset by a 1%
increase in commission per segment. Commission per segment
increased due to a 5% increase in average ticket price, partially
offset by a lower air commission rate compared to the same quarter
of 2011. Air ticketing commission revenue decreased to 15% of total
revenues from 22% in the prior year quarter.
Other
Other revenue is primarily derived from advertising and travel
insurance. Other revenue increased 14% year-on-year in the second
quarter of 2012. Other revenue decreased to 7% of total revenues
from 8% in the prior year quarter.
Profitability
Gross margin in the second quarter of 2012 increased to 75%,
compared to 74% in the second quarter of 2011. The improvement in
gross margin was driven by mix shift to hotel and online bookings,
partially offset by higher personnel expenses and lower hotel
commission revenue per room night.
Operating expenses for the second quarter of 2012 as compared to
the same period in 2011 were as follows (in RMB
million):
|
|
Q2 2012
|
|
% of
Net Revenue
|
|
Q2 2011
|
|
% of
Net Revenue
|
|
Y/Y
Growth
|
Service
development
|
|
30.5
|
|
16%
|
|
22.7
|
|
16%
|
|
34%
|
Sales and
marketing
|
|
90.5
|
|
49%
|
|
54.9
|
|
40%
|
|
65%
|
General
and administrative
|
|
14.6
|
|
8%
|
|
12.8
|
|
9%
|
|
14%
|
Amortization of intangible assets
|
0.3
|
|
-
|
|
0.1
|
|
-
|
|
104%
|
Charges
related to property and equipment
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
N/M
|
Total
operating expenses
|
|
135.9
|
|
73%
|
|
90.6
|
|
65%
|
|
50%
|
Total operating expenses increased 50% for the second quarter of
2012 compared to the second quarter of 2011. Total operating
expenses increased to 73% of net revenues in the second quarter of
2012 from 65% in the prior year quarter.
Service development expenses consist of expenses related to
technology and our product offering, including our websites,
platforms and other system development, as well as our supplier
relations function. Service development expenses increased 34%
compared to the prior year quarter, mainly driven by higher
personnel expenses. Service development expenses were 16% of net
revenues, consistent with the same quarter of 2011.
Sales and marketing expenses for the second quarter of 2012
increased 65% over the prior year quarter, mainly driven by
increased online marketing expenses, hotel commission payments to
affiliates, as well as advertising expenses. Sales and marketing
expenses increased to 49% of net revenues in the second quarter of
2012 from 40% in the same quarter of 2011.
General and administrative expenses for the second quarter of
2012 increased 14% compared to the prior year quarter, mainly
driven by higher personnel expenses. General and administrative
expenses decreased to 8% of net revenues in the second quarter of
2012 from 9% in the same quarter of 2011.
Other income/(expense) represents interest income, foreign
exchange losses and other income/(expense). Other income was
RMB14.0 million in the second quarter
of 2012 compared to other expense of RMB3.2
million in the second quarter of 2011, primarily driven by
an increase in interest income and a decrease in foreign exchange
losses. Interest income in the second quarter of 2012 increased to
RMB14.0 million, compared to
RMB5.3 million in the second quarter
of 2011, due to higher interest yield and a larger cash balance
than a year ago. Foreign exchange losses on our cash and cash
equivalents and short-term investments decreased to RMB0.03 million in the second quarter of 2012,
from RMB8.1 million in the second
quarter of 2011 as we held a smaller percentage of our cash and
cash equivalents, short-term investments and restricted cash in US
dollars than in the prior year quarter.
As of June 30, 2012, eLong held
cash and cash equivalents, short-term investments and restricted
cash of RMB1.9 billion (US$300 million), of which 98% was held in
Renminbi and 2% was held in US dollars, compared to total cash and
cash equivalents, short-term investments and restricted cash of
RMB1.8 billion (US$283 million), of which 41% was held in
Renminbi and 59% held in US dollars as of June 30, 2011.
Net income for the second quarter of 2012 was RMB16.0 million, compared to net income of
RMB7.1 million during the prior year
quarter.
Net income per ADS and diluted net income per ADS for the second
quarter of 2012 were each RMB0.46
(US$0.08), compared to net income per
ADS and diluted net income per ADS of RMB0.26 (US$0.04)
and RMB0.24 (US$0.04) respectively in the prior year
quarter.
Business Outlook
eLong currently expects net revenues for the third quarter of
2012 to increase by 10% to 20% compared to the third quarter of
2011. This outlook reflects eLong's current and preliminary view,
which is subject to change.
Share Repurchase Program
From the commencement of eLong's new share repurchase program
through August 17, 2012, eLong
purchased 158,233 ADSs (representing 316,466 ordinary shares) at a
cost of US$2.0 million.
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, 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," "future," "is/are
likely to," "should" and "will" and similar expressions as they
relate to eLong 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. Forward-looking statements
include, but are not limited to, statements about our anticipated
growth strategies, our future business development, results of
operations and financial condition, our ability to control costs
and maintain profitability, our ability to attract customers and
leverage our brand, and trends and competition in the travel
industry in China and globally.
Furthermore, these statements are, by their nature, subject to a
number of risks and uncertainties that could cause our actual
performance and results to differ materially from those discussed
in the forward-looking statements. Factors that could affect our
actual results and cause our actual results to differ materially
from those referred in any forward-looking statement include, but
are not limited to, declines or disruptions in the travel industry,
international financial, political or economic crises, a slowdown
in the PRC economy, an outbreak of bird flu, H1N1 flu, SARS or
other disease, eLong's reliance on maintaining good relationships
with, and stable air and hotel inventory from, hotel suppliers and
airline ticket suppliers, and on establishing new relationships
with suppliers on similar terms, our reliance on the TravelSky GDS
system for our air business and Baidu for our search engine
marketing, the risk that eLong will not be able to increase our
brand recognition, the possibility that eLong will be unable to
continue timely compliance with the Sarbanes-Oxley Act or other
regulatory requirements, the risk that eLong will not be successful
in competing against new and existing competitors, the risk that
our infrastructure and technology are damaged, fail or become
obsolete, risks associated with Expedia, Inc.'s (Nasdaq: EXPE)
majority ownership interest and Tencent's shareholding in eLong, risks relating
to eLong's investment in other businesses and assets, fluctuations
in the value of the Renminbi, inflation in China, changes in eLong's management team and
other personnel, risks relating to uncertainties in the PRC legal
system, including but not limited to, risks relating to our
affiliated Chinese operating entities and risks relating to the
application of preferential tax policies, and other risks mentioned
in eLong's filings with the U.S. Securities and Exchange
Commission, including eLong's Annual Report on Form 20-F.
If one or more of these risks or uncertainties occur, or if our
underlying assumptions prove to be incorrect, actual events or
results may vary significantly from those implied or projected by
the forward looking-statements. Investors should not rely upon
forward-looking statements as predictions of future events. Except
as required by law, we undertake no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. All forward-looking
statements contained in this press release are qualified by
reference to this cautionary statement.
Conference Call
eLong will host a conference call to discuss its second quarter
2012 unaudited financial results on August
21, 2012 at 8:00 am
Beijing time (August 20, 2012, 8:00 pm
ET). The management team will be on the call to discuss the
quarterly results and to answer questions. The toll-free number for
U.S. participants is +1-866-844-9413. The dial-in number for
Hong Kong participants is
+852-3001-3802. International participants can dial
+1-210-795-0512. Pass code: eLong.
Additionally, an archived web cast of this call will be
available on the Investor Relations section of the eLong web site
at http://www.elong.net/AboutUs/conference.html for one year.
About eLong, Inc.
eLong, Inc. (Nasdaq: LONG) is a leading online travel service
provider in China. Headquartered
in Beijing, eLong empowers
consumers to make informed travel decisions by providing convenient
online, mobile (via iPhone, iPad, Android and Windows Phone
applications) and 24-hour customer service center hotel and air
ticket booking services as well as easy to use tools such as maps,
destination guides, photographs, virtual tours and user reviews.
eLong offers consumers the largest directly-bookable hotel product
portfolio in China with a
selection of over 32,000 hotels in China and almost 155,000 international hotels
in more than 100 countries worldwide, as well as the ability to
fulfill domestic and international air ticket reservations across
China. eLong's largest
shareholders are Expedia, Inc. (Nasdaq: EXPE) and Tencent Holdings Ltd. (HKSE: 0700). eLong
operates websites including www.elong.com, www.elong.net and
www.xici.net.
For further information, please contact:
eLong, Inc.
Investor Relations
ir@corp.elong.com
+86-10-6436-7570
eLong,
Inc.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
(IN
THOUSANDS EXCEPT PER SHARE AND PER ADS AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
Jun.
30, 2011
|
Mar.
31, 2012
|
Jun.
30, 2012
|
Jun.
30, 2012
|
|
Jun.
30, 2011
|
Jun.
30, 2012
|
Jun.
30, 2012
|
|
|
|
RMB
|
RMB
|
RMB
|
USD(1)
|
|
RMB
|
RMB
|
USD(1)
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Hotel reservations
|
|
104,569
|
122,895
|
153,843
|
24,216
|
|
195,203
|
276,738
|
43,560
|
|
Air ticketing
|
|
32,252
|
27,158
|
29,944
|
4,713
|
|
62,411
|
57,102
|
8,988
|
|
Other
|
|
11,654
|
13,837
|
13,259
|
2,087
|
|
24,028
|
27,096
|
4,265
|
|
Total
revenues
|
|
148,475
|
163,890
|
197,046
|
31,016
|
|
281,642
|
360,936
|
56,813
|
|
Business tax and surcharges
|
|
(9,330)
|
(10,737)
|
(12,007)
|
(1,890)
|
|
(17,964)
|
(22,744)
|
(3,580)
|
|
Net
revenues
|
|
139,145
|
153,153
|
185,039
|
29,126
|
|
263,678
|
338,192
|
53,233
|
|
Cost of services
|
|
(36,072)
|
(41,274)
|
(46,149)
|
(7,264)
|
|
(70,096)
|
(87,424)
|
(13,761)
|
|
Gross
profit
|
|
103,073
|
111,879
|
138,890
|
21,862
|
|
193,582
|
250,768
|
39,472
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Service development
|
|
(22,706)
|
(27,236)
|
(30,494)
|
(4,800)
|
|
(43,247)
|
(57,730)
|
(9,087)
|
|
Sales and marketing
|
|
(54,868)
|
(66,949)
|
(90,526)
|
(14,249)
|
|
(98,503)
|
(157,475)
|
(24,788)
|
|
General and administrative
|
|
(12,737)
|
(14,774)
|
(14,591)
|
(2,297)
|
|
(25,705)
|
(29,365)
|
(4,622)
|
|
Amortization of intangible assets
|
(137)
|
(251)
|
(279)
|
(44)
|
|
(274)
|
(530)
|
(83)
|
|
Charges related to property and equipment
|
(141)
|
-
|
-
|
-
|
|
(141)
|
-
|
-
|
|
Total operating expenses
|
|
(90,589)
|
(109,210)
|
(135,890)
|
(21,390)
|
|
(167,870)
|
(245,100)
|
(38,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
|
12,484
|
2,669
|
3,000
|
472
|
|
25,712
|
5,668
|
892
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
5,304
|
11,606
|
14,006
|
2,205
|
|
9,895
|
25,613
|
4,032
|
|
Foreign exchange losses
|
|
(8,135)
|
(617)
|
(29)
|
(5)
|
|
(11,266)
|
(646)
|
(102)
|
|
Other
|
|
(341)
|
1,424
|
65
|
10
|
|
(4,517)
|
1,489
|
234
|
|
Total
other income/(expense), net
|
(3,172)
|
12,413
|
14,042
|
2,210
|
|
(5,888)
|
26,456
|
4,164
|
|
Income
before income tax expense
|
|
9,312
|
15,082
|
17,042
|
2,682
|
|
19,824
|
32,124
|
5,056
|
|
Income tax expense
|
|
(2,250)
|
(2,648)
|
(963)
|
(152)
|
|
(5,036)
|
(3,612)
|
(568)
|
|
Equity in net income/(loss) of
affiliates
|
57
|
(551)
|
(65)
|
(10)
|
|
41
|
(615)
|
(97)
|
|
Net
income
|
|
7,119
|
11,883
|
16,014
|
2,520
|
|
14,829
|
27,897
|
4,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share
|
|
0.13
|
0.17
|
0.23
|
0.04
|
|
0.28
|
0.41
|
0.06
|
|
Diluted
net income per share
|
|
0.12
|
0.17
|
0.23
|
0.04
|
|
0.27
|
0.40
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per ADS(2)(3)
|
|
0.26
|
0.34
|
0.46
|
0.08
|
|
0.56
|
0.82
|
0.12
|
|
Diluted
net income per ADS(2)(3)
|
0.24
|
0.34
|
0.46
|
0.08
|
|
0.54
|
0.80
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in computing net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
55,929
|
68,587
|
68,687
|
68,687
|
|
52,675
|
68,637
|
68,637
|
|
Diluted
|
|
57,920
|
69,342
|
69,225
|
69,225
|
|
54,969
|
69,321
|
69,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation charges included
in:
|
|
5,637
|
6,948
|
8,168
|
1,285
|
|
10,418
|
15,116
|
2,380
|
|
Cost of
services
|
|
432
|
465
|
638
|
100
|
|
691
|
1,103
|
174
|
|
Service
development
|
|
1,851
|
2,772
|
3,221
|
507
|
|
3,275
|
5,993
|
943
|
|
Sales and
marketing
|
|
845
|
1,285
|
1,069
|
168
|
|
1,564
|
2,354
|
371
|
|
General
and administrative
|
|
2,509
|
2,426
|
3,240
|
510
|
|
4,888
|
5,666
|
892
|
|
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD)
is based on the noon buying rate of USD1.00=RMB6.3530 on June 30,
2012 in the City of New York for cable transfers of Renminbi as
certified for customs purposes by the Federal Reserve. No
representation is made that the RMB amounts could have been, or
could be, converted or settled into USD at the rates stated herein
on the reporting dates, at any other rates or at all.
|
|
|
|
|
|
Note 2: 1
ADS = 2 shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 3:
Non-GAAP financial measures
|
|
|
|
|
|
|
|
|
eLong,
Inc.
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
(IN
THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31, 2011
|
|
Jun.
30, 2012
|
|
Jun.
30, 2012
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
411,676
|
|
276,839
|
|
43,576
|
Short-term investments
|
|
1,433,425
|
|
1,566,539
|
|
246,583
|
Restricted cash
|
|
61,400
|
|
61,400
|
|
9,665
|
Accounts receivable, net
|
|
83,311
|
|
114,083
|
|
17,957
|
Amounts due from related parties
|
|
11,632
|
|
19,348
|
|
3,046
|
Prepaid expenses
|
|
18,223
|
|
41,237
|
|
6,491
|
Other current assets
|
|
33,761
|
|
60,732
|
|
9,559
|
Total current assets
|
|
2,053,428
|
|
2,140,178
|
|
336,877
|
Property
and equipment, net
|
|
44,230
|
|
62,028
|
|
9,764
|
Investment
in equity affiliates
|
|
15,549
|
|
18,343
|
|
2,887
|
Goodwill
|
|
61,061
|
|
61,061
|
|
9,611
|
Intangible
assets, net
|
|
5,308
|
|
7,626
|
|
1,200
|
Other
non-current assets
|
|
31,142
|
|
35,041
|
|
5,516
|
Total assets
|
|
2,210,718
|
|
2,324,277
|
|
365,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
60,899
|
|
101,678
|
|
16,005
|
Income taxes payable
|
|
7,009
|
|
13,961
|
|
2,198
|
Amounts due to related parties
|
|
2,624
|
|
5,463
|
|
860
|
Deferred revenue
|
|
20,880
|
|
20,917
|
|
3,292
|
Accrued expenses and other current
liabilities
|
|
111,787
|
|
129,616
|
|
20,402
|
Total current liabilities
|
|
203,199
|
|
271,635
|
|
42,757
|
Other
liabilities
|
|
1,536
|
|
1,494
|
|
235
|
Total liabilities
|
|
204,735
|
|
273,129
|
|
42,992
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Ordinary shares
|
|
2,864
|
|
2,864
|
|
451
|
High-vote ordinary shares
|
|
2,691
|
|
2,691
|
|
424
|
Treasury stock
|
|
(75,494)
|
|
(69,683)
|
|
(10,969)
|
Additional paid-in capital
|
|
2,209,469
|
|
2,224,428
|
|
350,138
|
Accumulated deficit
|
|
(133,547)
|
|
(109,152)
|
|
(17,181)
|
Total shareholders' equity
|
|
2,005,983
|
|
2,051,148
|
|
322,863
|
Total liabilities and shareholders' equity
|
|
2,210,718
|
|
2,324,277
|
|
365,855
|
|
|
|
|
|
|
|
eLong,
Inc.
|
|
|
|
|
|
|
|
TRENDED
OPERATIONAL METRICS
|
|
|
|
|
|
(IN
THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
metrics below are intended as a supplement to the financial
statements found in this press release and in our filings with the
SEC. In the event of discrepancies between amounts in these tables
and our historical financial statements, readers should rely on our
filings with the SEC and financial statements in our most recent
press release.
|
We intend
to periodically review and refine the definition, methodology and
appropriateness of each of our supplemental metrics. As a result,
metrics are subject to removal and/or change, and such changes
could be material.
|
|
|
|
|
|
|
|
|
|
2011
(Unaudited)
|
2012
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2011
|
Q1
|
Q2
|
|
|
|
|
|
|
|
|
Hotel
Reservations
|
|
|
|
|
|
|
|
Room
Nights
|
1,700
|
2,217
|
2,702
|
2,583
|
9,202
|
2,844
|
3,666
|
Room Night
Y/Y
|
41%
|
43%
|
42%
|
50%
|
44%
|
67%
|
65%
|
Average
Daily Rate Y/Y
|
(1%)
|
(9%)
|
(9%)
|
(8%)
|
(7%)
|
(12%)
|
(11%)
|
Commission/Room Night Y/Y
|
(7%)
|
(15%)
|
(12%)
|
(7%)
|
(10%)
|
(19%)
|
(11%)
|
Hotel
Commissions Y/Y
|
31%
|
22%
|
25%
|
39%
|
29%
|
36%
|
47%
|
|
|
|
|
|
|
|
|
Air
Ticketing
|
|
|
|
|
|
|
|
Air
Segments
|
587
|
568
|
591
|
571
|
2,317
|
554
|
525
|
Air
Segments Y/Y
|
(10%)
|
(4%)
|
(6%)
|
1%
|
(5%)
|
(6%)
|
(8%)
|
Average
Ticket Value Y/Y
|
11%
|
7%
|
0%
|
4%
|
5%
|
1%
|
5%
|
Commission/Segment Y/Y
|
14%
|
10%
|
8%
|
(4%)
|
7%
|
(5%)
|
1%
|
Air
Commissions Y/Y
|
2%
|
6%
|
2%
|
(4%)
|
2%
|
(10%)
|
(7%)
|
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance
with generally accepted accounting principles in the United States, or GAAP, this press release
includes certain non-GAAP financial measures including net income
per ADS, diluted net income per ADS, Adjusted Earnings Before
Interests, Taxes, Depreciation and Amortization ("Adjusted
EBITDA"), Adjusted Net Income ("ANI") and Adjusted Net Income Per
Share. We believe these non-GAAP financial measures may help
investors understand eLong's current financial performance and
compare business trends among different reporting periods. These
non-GAAP financial measures should be considered in addition to
financial measures presented in accordance with GAAP, but should
not be considered as a substitute for, or superior to, financial
measures presented in accordance with GAAP. We seek to compensate
for the limitations of the non-GAAP measures presented by also
providing the comparable GAAP measures, GAAP financial statements,
and descriptions of the reconciling items and adjustments, to
derive the non-GAAP measures.
Adjusted EBITDA is defined as net income plus (1)
interest expense (income); (2) income tax expense; (3)
depreciation; (4) amortization of intangible assets; (5)
share-based compensation charges; (6) foreign exchange losses
(gains); (7) acquisition-related impacts, including (i) goodwill
and intangible asset impairment, and (ii) losses (gains) recognized
on noncontrolling investment basis adjustments when we acquire
controlling interests; and (8) certain other items, including
restructuring charges and equity in net loss (income) of
affiliates. We believe Adjusted EBITDA is a useful financial metric
to assess our operating and financial performance before the impact
of investing and financing transactions, if any, and income tax
expense. Since share-based compensation charges are non-cash
expenses, we believe excluding them from our calculation of
Adjusted EBITDA allows us to provide investors with a more useful
tool for assessing our operating and financial performance. In
addition, we believe that Adjusted EBITDA is used by other
companies and may be used by investors as a measure of our
financial performance. The presentation of Adjusted EBITDA should
not be construed as an indication that eLong's future results will
be unaffected by other charges and gains we consider to be outside
the ordinary course of our business. The use of Adjusted EBITDA has
certain limitations. Amortization and depreciation expenses for
various non-current assets, share-based compensation charges, other
income/(expenses), and income tax expense have been and will be
incurred and are not reflected in the presentation of Adjusted
EBITDA. Each of these items should also be considered in the
overall evaluation of our results. Additionally, Adjusted EBITDA
does not consider capital expenditures and other investing
activities and should not be considered as a measure of eLong's
liquidity. We seek to compensate for these limitations by providing
the relevant disclosure of our amortization and depreciation
expenses, and share-based compensation charges in the
reconciliations to the GAAP financial measure. The term Adjusted
EBITDA is not defined under GAAP, and Adjusted EBITDA is not
measure of net income, income from operations, operating
performance or liquidity presented in accordance with GAAP. In
addition, eLong's Adjusted EBITDA may not be comparable to Adjusted
EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate Adjusted EBITDA in the
same manner as we do.
Adjusted EBITDA should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP measures. We present a
reconciliation of this non-GAAP financial measure to GAAP
below.
eLong,
Inc.
|
|
|
|
|
|
|
|
|
TABULAR
RECONCILIATION FOR NON-GAAP MEASURE
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
(IN
THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
(Unaudited)
|
|
2012
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2011
|
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
|
Net
income
|
7,712
|
7,119
|
9,436
|
15,004
|
39,271
|
|
11,883
|
16,014
|
Interest
income
|
(4,591)
|
(5,304)
|
(7,166)
|
(8,587)
|
(25,648)
|
|
(11,606)
|
(14,006)
|
Income tax
expense
|
2,786
|
2,250
|
2,921
|
2,790
|
10,747
|
|
2,648
|
963
|
Depreciation
|
4,987
|
5,206
|
5,512
|
5,593
|
21,298
|
|
5,985
|
6,435
|
Amortization of intangible assets
|
136
|
137
|
137
|
137
|
547
|
|
251
|
279
|
Share-based compensation charges
|
4,779
|
5,637
|
5,886
|
5,620
|
21,922
|
|
6,948
|
8,168
|
Foreign
exchange losses
|
3,131
|
8,135
|
5,923
|
2,314
|
19,503
|
|
617
|
29
|
Other
|
15
|
84
|
161
|
1,155
|
1,415
|
|
(873)
|
-
|
Adjusted EBITDA
|
18,955
|
23,264
|
22,810
|
24,026
|
89,055
|
|
15,853
|
17,882
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income generally captures all items on the
statements of operations that occur in normal course operations and
have been, or ultimately will be, settled in cash and is defined as
net income plus net of tax: (1) share-based compensation charges;
(2) acquisition-related impacts, including (i) amortization of
intangible assets, including as part of equity-method investments,
and goodwill and intangible asset impairment, (ii) losses (gains)
recognized on changes in the value of contingent consideration
arrangements, and (iii) losses (gains) recognized on noncontrolling
investment basis adjustments when we acquire controlling interests;
(3) foreign exchange losses; (4) certain other items, including
restructuring charges; and (5) discontinued operations. We believe
Adjusted Net Income is useful to investors because it represents
eLong's results, taking into account depreciation, which management
believes is an ongoing cost of doing business, but excluding the
impact of other non-cash expenses, infrequently occurring items and
items not directly tied to the core operations of our
businesses.
Adjusted Net Income Per Share is defined as Adjusted Net
Income divided by adjusted weighted average shares outstanding,
which include dilution from options and warrants per the treasury
stock method and include all shares relating to Performance Units
in shares outstanding for Adjusted Net Income Per Share. This
differs from the GAAP method for including Performance Units, which
treats them on a treasury stock method basis. Shares outstanding
for Adjusted Net Income Per Share purposes are therefore higher
than shares outstanding for GAAP Net Income Per Share purposes. We
believe Adjusted Net Income Per Share is useful to investors
because it represents, on a per share basis, eLong's consolidated
results, taking into account depreciation, which we believe is an
ongoing cost of doing business, as well as other items which are
not allocated to the operating businesses such as interest income
and income tax expense, but excluding the effects of non-cash
expenses not directly tied to the core operations of our
businesses. Adjusted Net Income and Adjusted Net Income Per Share
have similar limitations as Adjusted EBITDA. In addition, Adjusted
Net Income does not include all items that affect our net income
and net income per share for the period. Therefore, we think it is
important to evaluate these measures along with our consolidated
statements of operations.
Adjusted Net Income and Adjusted Net Income Per Share should be
considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for, or superior to, GAAP
measures. We present a reconciliation of these non-GAAP financial
measures to GAAP below.
eLong,
Inc.
|
|
|
|
|
|
|
|
|
TABULAR
RECONCILIATION FOR NON-GAAP MEASURE
|
|
|
|
|
|
Adjusted Net Income and Adjusted Net Income
Per Share
|
|
|
|
|
|
(IN
THOUSANDS EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
(Unaudited)
|
|
2012 (Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2011
|
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
|
Net
income
|
7,712
|
7,119
|
9,436
|
15,004
|
39,271
|
|
11,883
|
16,014
|
Share-based compensation charges
|
4,779
|
5,637
|
5,886
|
5,620
|
21,922
|
|
6,948
|
8,168
|
Amortization of intangible assets
|
136
|
137
|
137
|
137
|
547
|
|
251
|
279
|
Foreign
exchange losses
|
3,131
|
8,135
|
5,923
|
2,314
|
19,503
|
|
617
|
29
|
Other
|
3,432
|
386
|
263
|
524
|
4,605
|
|
(40)
|
(73)
|
Adjusted net income
|
19,190
|
21,414
|
21,645
|
23,599
|
85,848
|
|
19,659
|
24,417
|
|
|
|
|
|
|
|
|
|
Shares
used in computing adjusted net income per share:
|
|
|
|
|
|
GAAP
diluted weighted average shares outstanding
|
52,105
|
57,920
|
69,547
|
69,080
|
62,298
|
|
69,342
|
69,225
|
Additional
performance units
|
316
|
229
|
214
|
280
|
262
|
|
390
|
796
|
Adjusted
weighted average shares outstanding
|
52,421
|
58,149
|
69,761
|
69,360
|
62,560
|
|
69,732
|
70,021
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
|
0.37
|
0.37
|
0.31
|
0.34
|
1.37
|
|
0.28
|
0.35
|
SOURCE eLong, Inc.