BEIJING, Aug. 14, 2013 /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, 2013.
(Logo: http://photos.prnewswire.com/prnh/20041118/ELONGLOGO
)
Highlights
- Hotel room nights stayed in the second quarter
increased 58% to 5.8 million room nights compared to 3.7 million in
the prior year period.
- Hotel commission revenue for the second quarter
increased 29% to RMB198.6 million
(US$32.4 million), compared to
RMB153.8 million (US$24.2 million) in the second quarter of
2012.
- Net revenues for the second quarter increased 27%
to RMB234.3 million (US$38.2 million), compared to RMB185.0 million (US$29.1
million) in the second quarter of 2012.
- Mobile hotel bookings comprised more than 20% of total
hotel room nights stayed in the second quarter, and are currently
expected to comprise approximately 25% of total hotel room nights
stayed in the third quarter of 2013. There have now been more than
25 million cumulative downloads of eLong mobile
Apps.
"We see an accelerating trend towards mobile hotel bookings,
which comprised more than 20% of our hotel room nights in Q2,
surpassing our call centers to become our second largest hotel
booking channel," said Guangfu Cui,
Chief Executive Officer of eLong. "To capture this great market
opportunity, we have moved from an online hotel strategy to a
mobile hotel strategy. We are also establishing a US$100 million fund to encourage innovation in
this fast-growing area."
Business Results
Revenues
Total revenues by product for the second quarter of 2013 as
compared to the same period in 2012 were as follows (in RMB
million):
|
|
Q2
2013
|
|
%
|
|
Q2
2012
|
|
%
|
|
Y/Y
|
Total
|
Total
|
Growth
|
Hotel
reservations
|
|
198.6
|
|
79%
|
|
153.8
|
|
78%
|
|
29%
|
Air
ticketing
|
|
35.6
|
|
14%
|
|
29.9
|
|
15%
|
|
19%
|
Other
|
|
17.5
|
|
7%
|
|
13.3
|
|
7%
|
|
32%
|
Total
revenues
|
|
251.7
|
|
100%
|
|
197.0
|
|
100%
|
|
28%
|
Hotel Reservations
Hotel commission revenue increased 29% in the second quarter of
2013 compared to the same period in 2012, primarily due to higher
volume, partially offset by lower commission per room night. Room
nights stayed in the second quarter increased 58% year-on-year to
5.8 million. Commission per room night decreased 18% year-on-year,
primarily due to growth of our coupon program and lower average
daily rate hotel room nights. Hotel commission revenue grew to 79%
of total revenues from 78% in the prior year quarter.
Air Ticketing
Air ticketing commission revenue increased 19% in the second
quarter of 2013 compared to the prior year quarter, driven by a 28%
increase in air segments to 671,000, partially offset by a 7%
decrease in commission per segment. Commission per segment
decreased compared to the prior year quarter, mainly due to a
decrease in average ticket price, as well as our air coupon
program. Air ticketing commission revenue decreased to 14% of total
revenues from 15% in the prior year quarter.
Other
Other revenue is primarily derived from advertising and travel
insurance. Other revenue increased 32% year-on-year in the second
quarter of 2013, mainly driven by increased advertising and travel
insurance revenue. Other revenue was 7% of total revenues,
consistent with the prior year quarter.
Profitability
Gross margin in the second quarter of 2013 was 74%, compared to
75% in the second quarter of 2012. Gross margin decline was driven
by lower hotel commission revenue per room night, and was partially
offset by operational efficiencies and mix shift to online hotel
bookings.
Operating expenses for the second quarter of 2013 as compared to
the same period in 2012 were as follows (in RMB
million):
|
|
Q2 2013
|
|
% of Net
Revenue
|
|
Q2 2012
|
|
% of Net
Revenue
|
|
Y/Y
Growth
|
Service
development
|
|
40.4
|
|
18%
|
|
30.5
|
|
16%
|
|
32%
|
Sales and
marketing
|
|
164.9
|
|
70%
|
|
90.5
|
|
49%
|
|
82%
|
General and
administrative
|
|
16.1
|
|
7%
|
|
14.6
|
|
8%
|
|
10%
|
Amortization of
intangible assets
|
0.9
|
|
-
|
|
0.3
|
|
-
|
|
N/M
|
Total operating
expenses
|
|
222.3
|
|
95%
|
|
135.9
|
|
73%
|
|
64%
|
Total operating expenses increased 64% for the second quarter of
2013 compared to the second quarter of 2012. Total operating
expenses increased to 95% of net revenues in the second quarter of
2013 from 73% in the prior year quarter which led to an operating
loss of RMB47.9 million compared to
operating income of RMB3.0 million 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 32%
compared to the prior year quarter, mainly driven by higher
personnel expenses. Service development expenses increased to 18%
of net revenues in the second quarter of 2013 from 16% in the same
quarter of 2012.
Sales and marketing expenses for the second quarter of 2013
increased 82% over the prior year quarter, driven by increased
advertising expenses, online marketing, and hotel commission
payments to affiliates. Sales and marketing expenses increased to
70% of net revenues in the second quarter of 2013 from 49% in the
same quarter of 2012.
General and administrative expenses for the second quarter of
2013 increased 10% compared to the prior year quarter, mainly
driven by higher personnel expenses and professional fees,
partially offset by lower share-based compensation charges. General
and administrative expenses decreased to 7% of net revenues in the
second quarter of 2013 from 8% in the same quarter of 2012.
Other income was RMB13.4 million
in the second quarter of 2013 compared to other income of
RMB14.0 million in the second quarter
of 2012.
Income tax expense for the second quarter of 2013 was
RMB43.1 million, compared to income
tax expense of RMB1.0 million during
the prior year quarter, mainly driven by the recording of a
valuation allowance of RMB68.7
million on deferred tax assets.
As of June 30, 2013, eLong held
cash and cash equivalents, short-term investments and restricted
cash of RMB1.9 billion (US$310 million), substantially all of which was
held in Renminbi.
eLong currently intends to allocate US$100 million of its cash balance to investments
over a multi-year period in innovations in mobile hotel technology
and related areas. The investments will be made through an internal
Mobile Travel Innovation Fund.
Net loss for the second quarter of 2013 was RMB76.1 million, compared to net income of
RMB16.0 million during the prior year
quarter.
Basic net loss per ADS and diluted net loss per ADS for the
second quarter of 2013 were each RMB2.20 (US$0.36),
compared to basic net income per ADS and diluted net income per ADS
of RMB0.46 (US$0.08) in the prior year quarter.
Business Outlook
eLong currently expects net revenues for the third quarter of
2013 to increase by 35% to 45% compared to the third quarter of
2012. This outlook reflects eLong's current and preliminary view,
which is subject to change.
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/or 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 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 (and its subsidiary Qunar) and Qihoo for our
search engine marketing, the risk that eLong will not be able to
increase its 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
2013 unaudited financial results on August
15, 2013 at 8:30 am
Beijing time (August 14, 2013, 8:30 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. The toll-free numbers for China Mainland participants are 10800-712-1470
(China Unicom) and 10800-120-1470 (China Telecom) and the toll
number for China Mainland
participants is 86-400-810-4731. International participants can
dial +1-210-795-0512. Pass code: eLong.
Additionally, an archived web cast of this call will be
available for one year on the Investor Relations section of the
eLong web site at http://elong.investorroom.com/index.php?s=19.
About eLong, Inc.
eLong, Inc. (Nasdaq: LONG - News) is a leader in mobile and
online hotel reservations in China
offering consumers a leading hotel network of approximately 220,000
bookable domestic and international properties in 200 countries
worldwide. eLong uses innovative technology to enable travelers to
make informed hotel and air ticket booking decisions through its
convenient website and mobile (iPhone, iPad, Android, and Windows
Phone) applications and easy to use tools such as destination
guides, photos, virtual tours, maps and user reviews. eLong
provides 24-hour customer support and 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 and
www.elong.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,
2012
|
Mar. 31,
2013
|
Jun. 30,
2013
|
Jun. 30,
2013
|
|
Jun. 30,
2012
|
Jun. 30,
2013
|
Jun. 30,
2013
|
|
|
|
RMB
|
RMB
|
RMB
|
USD(1)
|
|
RMB
|
RMB
|
USD(1)
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Hotel
reservations
|
|
153,843
|
180,152
|
198,546
|
32,350
|
|
276,738
|
378,698
|
61,703
|
|
Air
ticketing
|
|
29,944
|
31,687
|
35,611
|
5,802
|
|
57,102
|
67,298
|
10,965
|
|
Other
|
|
13,259
|
19,204
|
17,524
|
2,856
|
|
27,096
|
36,728
|
5,985
|
|
Total
revenues
|
|
197,046
|
231,043
|
251,681
|
41,008
|
|
360,936
|
482,724
|
78,653
|
|
Business tax, VAT and
surcharges
|
(12,007)
|
(13,648)
|
(17,360)
|
(2,829)
|
|
(22,744)
|
(31,008)
|
(5,052)
|
|
Net
revenues
|
|
185,039
|
217,395
|
234,321
|
38,179
|
|
338,192
|
451,716
|
73,601
|
|
Cost of
services
|
|
(46,149)
|
(54,818)
|
(59,872)
|
(9,755)
|
|
(87,424)
|
(114,690)
|
(18,687)
|
|
Gross
profit
|
|
138,890
|
162,577
|
174,449
|
28,424
|
|
250,768
|
337,026
|
54,914
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Service
development
|
|
(30,494)
|
(36,495)
|
(40,385)
|
(6,580)
|
|
(57,730)
|
(76,880)
|
(12,526)
|
|
Sales and
marketing
|
|
(90,526)
|
(112,615)
|
(164,952)
|
(26,877)
|
|
(157,475)
|
(277,567)
|
(45,226)
|
|
General and
administrative
|
|
(14,591)
|
(21,584)
|
(16,091)
|
(2,622)
|
|
(29,365)
|
(37,675)
|
(6,139)
|
|
Amortization of
intangible assets
|
(279)
|
(913)
|
(911)
|
(148)
|
|
(530)
|
(1,824)
|
(297)
|
|
Charges related to
intangible assets
|
-
|
(177)
|
-
|
-
|
|
-
|
(177)
|
(29)
|
|
Total operating
expenses
|
|
(135,890)
|
(171,784)
|
(222,339)
|
(36,227)
|
|
(245,100)
|
(394,123)
|
(64,217)
|
|
Income/(loss) from
operations
|
3,000
|
(9,207)
|
(47,890)
|
(7,803)
|
|
5,668
|
(57,097)
|
(9,303)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
14,006
|
14,629
|
14,857
|
2,421
|
|
25,613
|
29,486
|
4,804
|
|
Foreign exchange
losses
|
|
(29)
|
(539)
|
(483)
|
(79)
|
|
(646)
|
(1,022)
|
(167)
|
|
Other
|
|
65
|
521
|
(949)
|
(155)
|
|
1,489
|
(428)
|
(69)
|
|
Total other
income
|
|
14,042
|
14,611
|
13,425
|
2,187
|
|
26,456
|
28,036
|
4,568
|
|
Income/(loss)
before income tax benefit/(expense)
|
|
17,042
|
5,404
|
(34,465)
|
(5,616)
|
|
32,124
|
(29,061)
|
(4,735)
|
|
Income tax
expense
|
|
(963)
|
(3,276)
|
(43,069)
|
(7,017)
|
|
(3,612)
|
(46,345)
|
(7,551)
|
|
Share of net
income/(loss) in non-consolidated affiliates
|
(65)
|
644
|
1,426
|
233
|
|
(615)
|
2,070
|
337
|
|
Net
income/(loss)
|
|
16,014
|
2,772
|
(76,108)
|
(12,401)
|
|
27,897
|
(73,336)
|
(11,949)
|
|
Other comprehensive
income
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
Total
comprehensive income
|
|
16,014
|
2,772
|
(76,108)
|
(12,401)
|
|
27,897
|
(73,336)
|
(11,949)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per share
|
0.23
|
0.04
|
(1.10)
|
(0.18)
|
|
0.41
|
(1.06)
|
(0.17)
|
|
Diluted net
income/(loss) per share
|
0.23
|
0.04
|
(1.10)
|
(0.18)
|
|
0.40
|
(1.06)
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per ADS(2)(3)
|
0.46
|
0.08
|
(2.20)
|
(0.36)
|
|
0.82
|
(2.12)
|
(0.34)
|
|
Diluted net
income/(loss) per ADS(2)(3)
|
0.46
|
0.08
|
(2.20)
|
(0.36)
|
|
0.80
|
(2.12)
|
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income/(loss) per share:
|
|
|
|
|
|
|
|
Basic
|
|
68,687
|
69,004
|
69,201
|
69,201
|
|
68,637
|
69,103
|
69,103
|
|
Diluted
|
|
69,225
|
69,733
|
69,201
|
69,201
|
|
69,321
|
69,103
|
69,103
|
|
Share-based
compensation charges included in:
|
|
8,168
|
10,439
|
6,516
|
1,062
|
|
15,116
|
16,954
|
2,762
|
|
Cost of
services
|
|
638
|
617
|
560
|
91
|
|
1,103
|
1,176
|
192
|
|
Service
development
|
|
3,221
|
3,480
|
3,264
|
532
|
|
5,993
|
6,744
|
1,099
|
|
Sales and
marketing
|
|
1,069
|
1,356
|
897
|
146
|
|
2,354
|
2,252
|
367
|
|
General and
administrative
|
|
3,240
|
4,986
|
1,795
|
293
|
|
5,666
|
6,782
|
1,104
|
|
Note 1: The
conversion of Renminbi (RMB) into United States dollars (USD) is
based on the noon buying rate of USD1.00=RMB6.1374 on June 30, 2013
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,
2012
|
|
Jun. 30,
2013
|
|
Jun. 30,
2013
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
311,140
|
|
221,871
|
|
36,151
|
Short-term
investments
|
|
1,581,502
|
|
1,619,367
|
|
263,852
|
Restricted
cash
|
|
61,400
|
|
61,400
|
|
10,004
|
Accounts receivable,
net
|
|
127,973
|
|
186,727
|
|
30,425
|
Amounts due from
related parties
|
|
23,639
|
|
57,764
|
|
9,412
|
Prepaid
expenses
|
|
21,240
|
|
39,843
|
|
6,492
|
Deferred tax assets,
current
|
|
15,342
|
|
5,897
|
|
961
|
Other current
assets
|
|
53,324
|
|
54,000
|
|
8,798
|
Total current
assets
|
|
2,195,560
|
|
2,246,869
|
|
366,095
|
Property and
equipment, net
|
|
72,362
|
|
82,309
|
|
13,411
|
Investment in
non-consolidated affiliates
|
|
42,031
|
|
44,101
|
|
7,186
|
Goodwill
|
|
77,782
|
|
78,152
|
|
12,734
|
Intangible assets,
net
|
|
14,712
|
|
12,341
|
|
2,011
|
Deferred tax assets,
non-current
|
|
31,037
|
|
3,522
|
|
574
|
Other non-current
assets
|
|
37,149
|
|
37,960
|
|
6,184
|
Total non-current
assets
|
|
275,073
|
|
258,385
|
|
42,100
|
Total
assets
|
|
2,470,633
|
|
2,505,254
|
|
408,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
119,200
|
|
187,532
|
|
30,556
|
Income taxes
payable
|
|
14,671
|
|
7,615
|
|
1,241
|
Amounts due to
related parties
|
|
89,634
|
|
76,741
|
|
12,504
|
Deferred
revenue
|
|
10,197
|
|
29,552
|
|
4,815
|
Accrued expenses and
other current liabilities
|
|
198,970
|
|
216,774
|
|
35,319
|
Total current
liabilities
|
|
432,672
|
|
518,214
|
|
84,435
|
Other
liabilities
|
|
1,086
|
|
86
|
|
14
|
Total non-current
liabilities
|
|
1,086
|
|
86
|
|
14
|
Total
liabilities
|
|
433,758
|
|
518,300
|
|
84,449
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
2,864
|
|
2,864
|
|
467
|
High-vote ordinary
shares
|
|
2,691
|
|
2,691
|
|
438
|
Treasury
stock
|
|
(70,105)
|
|
(52,399)
|
|
(8,538)
|
Additional paid-in
capital
|
|
2,238,577
|
|
2,255,122
|
|
367,439
|
Statutory
reserves
|
|
15,409
|
|
15,409
|
|
2,512
|
Accumulated
deficit
|
|
(152,561)
|
|
(236,733)
|
|
(38,572)
|
Total
shareholders' equity
|
|
2,036,875
|
|
1,986,954
|
|
323,746
|
Total liabilities
and shareholders' equity
|
|
2,470,633
|
|
2,505,254
|
|
408,195
|
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.
|
|
|
2012
(Unaudited)
|
2013
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2012
|
Q1
|
Q2
|
|
|
|
|
|
|
|
|
Hotel
Reservations
|
|
|
|
|
|
|
|
Room
Nights
|
2,843
|
3,666
|
4,601
|
5,014
|
16,124
|
4,877
|
5,803
|
Room Night
Y/Y
|
67%
|
65%
|
70%
|
94%
|
75%
|
71%
|
58%
|
Average Daily Rate
Y/Y
|
(12%)
|
(11%)
|
(9%)
|
(15%)
|
(12%)
|
(4%)
|
(5%)
|
Commission/Room Night
Y/Y
|
(19%)
|
(11%)
|
(27%)
|
(29%)
|
(22%)
|
(15%)
|
(18%)
|
Hotel Commissions
Y/Y
|
36%
|
47%
|
24%
|
38%
|
36%
|
47%
|
29%
|
|
|
|
|
|
|
|
|
Air
Ticketing
|
|
|
|
|
|
|
|
Air
Segments
|
554
|
525
|
662
|
637
|
2,378
|
672
|
671
|
Air Segments
Y/Y
|
(6%)
|
(8%)
|
12%
|
11%
|
3%
|
21%
|
28%
|
Average Ticket Price
Y/Y
|
1%
|
5%
|
0%
|
(4%)
|
1%
|
(1%)
|
(10%)
|
Commission/Segment
Y/Y
|
(5%)
|
1%
|
(7%)
|
(3%)
|
(4%)
|
(4%)
|
(7%)
|
Air Commissions
Y/Y
|
(10%)
|
(7%)
|
5%
|
8%
|
(1%)
|
17%
|
19%
|
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 basic net
income/(loss) per ADS, diluted net income/(loss) per ADS, Adjusted
Earnings Before Interests, Taxes, Depreciation and Amortization
("Adjusted EBITDA"), Adjusted Net Income/(Loss) ("ANI") and
Adjusted Net Income/(Loss) 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/(loss) plus (1)
interest expense (income); (2) income tax expense (benefit); (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 non-controlling investment basis adjustments when we acquire
controlling interests; and (8) certain other items, including
restructuring charges, impairment loss on equity method investment
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 (benefit). 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 (benefit) 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/(loss),
income/(loss) 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
(Unaudited)
|
2013
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2012
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
11,883
|
16,013
|
(33,140)
|
5,715
|
471
|
2,772
|
(76,108)
|
Interest
income
|
(11,607)
|
(14,006)
|
(14,955)
|
(14,691)
|
(55,259)
|
(14,629)
|
(14,857)
|
Income tax expense
(benefit)
|
2,649
|
963
|
(7,178)
|
(12,450)
|
(16,016)
|
3,276
|
43,069
|
Depreciation
|
5,985
|
6,435
|
7,096
|
7,420
|
26,936
|
7,759
|
8,420
|
Amortization of
intangible assets
|
251
|
279
|
279
|
247
|
1,056
|
913
|
911
|
Share-based
compensation charges
|
6,948
|
8,168
|
6,979
|
7,853
|
29,948
|
10,439
|
6,516
|
Foreign exchange
losses
|
618
|
29
|
83
|
1,237
|
1,967
|
539
|
483
|
Impairment loss on
equity method investment
|
-
|
-
|
-
|
4,812
|
4,812
|
-
|
-
|
Other
|
(873)
|
-
|
(641)
|
1,627
|
113
|
(988)
|
(476)
|
Adjusted
EBITDA
|
15,854
|
17,881
|
(41,477)
|
1,770
|
(5,972)
|
10,081
|
(32,042)
|
Adjusted Net Income/(Loss) 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/(loss) 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 non-controlling 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/(Loss) 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/(Loss) Per Share is defined as
Adjusted Net Income/(Loss) 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/(Loss) 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/(Loss) Per
Share purposes are therefore higher than shares outstanding for
GAAP Net Income/(Loss) Per Share purposes. We believe Adjusted Net
Income/(Loss) 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/(benefit), but excluding the effects of non-cash
expenses not directly tied to the core operations of our
businesses. Adjusted Net Income/(Loss) and Adjusted Net
Income/(Loss) Per Share have similar limitations as Adjusted
EBITDA. In addition, Adjusted Net Income/(Loss) does not include
all items that affect our net income/(loss) and net income/(loss)
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/(Loss) and Adjusted Net Income/(Loss) 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/(Loss) and Adjusted Net Income/(Loss) Per
Share
|
|
|
|
|
|
(IN THOUSANDS EXCEPT
PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
(Unaudited)
|
2013
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2012
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
11,883
|
16,013
|
(33,140)
|
5,715
|
471
|
2,772
|
(76,108)
|
Share-based
compensation charges
|
6,948
|
8,168
|
6,979
|
7,853
|
29,948
|
10,439
|
6,516
|
Amortization of
intangible assets
|
251
|
279
|
279
|
247
|
1,056
|
913
|
911
|
Foreign exchange
losses
|
618
|
29
|
83
|
1,237
|
1,967
|
539
|
483
|
Other
|
(40)
|
(73)
|
317
|
1,711
|
1,915
|
(79)
|
608
|
Adjusted net
income/(loss)
|
19,660
|
24,416
|
(25,482)
|
16,763
|
35,357
|
14,584
|
(67,590)
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income/(loss) per share:
|
|
|
|
|
|
GAAP diluted weighted
average shares outstanding
|
69,342
|
69,225
|
68,859
|
69,862
|
69,443
|
69,733
|
69,201
|
Additional
performance units
|
390
|
796
|
858
|
904
|
724
|
1,640
|
1,687
|
Adjusted weighted
average shares outstanding
|
69,732
|
70,021
|
69,717
|
70,766
|
70,167
|
71,373
|
70,888
|
|
|
|
|
|
|
|
|
Adjusted net
income/(loss) per share
|
0.28
|
0.35
|
(0.37)
|
0.24
|
0.50
|
0.20
|
(0.95)
|
SOURCE eLong, Inc.