BEIJING, Aug. 7, 2014 /PRNewswire/ -- eLong, Inc. (Nasdaq:
LONG), a leading mobile and online travel service provider in
China, today reported unaudited
financial results for the second quarter ended June 30, 2014.
Highlights
- Hotel room nights stayed in the second quarter increased
44% to 8.3 million room nights compared to 5.8 million in the
prior year period.
- Hotel commission revenue for the second quarter
increased 28% to RMB254.1 million
(US$41.0 million), compared to
RMB198.6 million (US$32.4 million) in the second quarter of
2013.
- Net revenues for the second quarter increased 25% to
RMB292.4 million (US$47.1 million), compared to RMB234.3 million (US$38.2
million) in the second quarter of 2013. Total revenues for
the second quarter increased to RMB312.4
million (US$50.4
million).
- Mobile bookings comprised 45% of eLong brand room
nights* in the second quarter. Cumulative downloads of eLong mobile
apps now exceed 80 million.
- More than 10,000 properties now use the free,
cloud-based, multi-device hotel property management systems,
Yunzhanggui and Zhuzhe, produced by our investee companies.
"In the second quarter, our lodging network grew to 120,000
contracted properties in China and
nearly 325,000 properties worldwide. Every day our mobile
applications provide real savings to our customers with tens of
thousands of discounted lodging products, including pre-paid, flash
sale, last minute and groupbuy products. With our broad range of
accommodations products and attractive discounts, mobile has now
become our largest booking channel, surpassing 60,000 transactions
on peak days," said Guangfu Cui,
Chief Executive Officer of eLong.
* eLong brand room nights, excludes room nights from non-eLong
brand distribution partners and resellers.
Business Results
Revenues
Total revenues by product for the second quarter of 2014 as
compared to the same period in 2013 were as follows (in RMB
million):
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2014
|
|
%
|
|
Q2
2013
|
|
%
|
|
Y/Y
|
Total
|
Total
|
Growth
|
Hotel
reservations
|
|
254.1
|
|
81%
|
|
198.6
|
|
79%
|
|
28%
|
Air
ticketing
|
|
35.1
|
|
11%
|
|
35.6
|
|
14%
|
|
(1%)
|
Other
|
|
23.2
|
|
8%
|
|
17.5
|
|
7%
|
|
33%
|
Total
revenues
|
|
312.4
|
|
100%
|
|
251.7
|
|
100%
|
|
24%
|
Hotel Reservations
Hotel commission revenue increased 28% in the second quarter of
2014 compared to the same period in 2013, primarily due to higher
volume, partially offset by lower commission per room night. Room
nights stayed in the second quarter increased 44% year-on-year to
8.3 million. Commission per room night decreased 11% year-on-year,
primarily due to the growth of lower commission rate and average
daily rate hotel room nights. Hotel commission revenuegrew to 81%
of total revenues from 79% in the prior year quarter.
Air Ticketing
Air ticketing commission revenue decreased 1% in the second
quarter of 2014, compared to the prior year quarter, driven by a 5%
decrease in commission per segment, partially offset by a 4%
increase in air segments to approximately 699,000. Commission per
segment decrease was mainly due to growth of our air coupon
program, as well as a decrease in average ticket price. Air
ticketing commission revenue decreased to 11% of total revenues
from 14% in the prior year quarter.
Other
Other revenue is primarily derived from advertising and travel
insurance. Other revenue increased 33% year-on-year in the second
quarter of 2014, mainly driven by increased advertising and travel
insurance revenues. Other revenue grew to 8% of total revenues from
7% in the prior year quarter.
Profitability
Gross margin in the second quarter of 2014 was 76%, compared to
74% in the second quarter of 2013. The improvement in gross margin
was driven by operational efficiencies, partially offset by lower
hotel commission revenue per room night.
Operating expenses for the second quarter of 2014 as compared to
the same period in 2013 were as follows (in RMB
million):
|
|
Q2
2014
|
|
% of Net
Revenue
|
|
Q2
2013
|
|
% of Net
Revenue
|
|
Y/Y
Growth
|
Service
development
|
|
62.4
|
|
21%
|
|
40.4
|
|
18%
|
|
55%
|
Sales and
marketing
|
|
149.1
|
|
51%
|
|
164.9
|
|
70%
|
|
(10%)
|
General and
administrative
|
|
36.6
|
|
13%
|
|
16.1
|
|
7%
|
|
128%
|
Amortization of
intangible assets
|
|
1.5
|
|
-
|
|
0.9
|
|
-
|
|
61%
|
Total operating
expenses
|
|
249.6
|
|
85%
|
|
222.3
|
|
95%
|
|
12%
|
Total operating expenses increased 12% for the second quarter of
2014 compared to the second quarter of 2013. Total operating
expenses decreased to 85% of net revenues in the second quarter of
2014 from 95% in the prior year quarter. Operating income was
RMB1.9 million in the second quarter
of 2014 compared to operating loss of RMB47.9 million in the prior year quarter.
Service development expenses are expenses related to technology
and our product offering, including our websites and other systems,
as well as our supplier relations function. Service development
expenses increased 55% compared to the prior year quarter, mainly
driven by higher personnel expenses. Service development expenses
increased to 21% of net revenues in the second quarter of 2014,
compared to 18% in the same quarter of 2013.
Sales and marketing expenses for the second quarter of 2014
decreased 10% over the prior year quarter, driven by decreased
advertising expenses, partially offset by increased hotel
commission payments to affiliates. Sales and marketing expenses
decreased to 51% of net revenues in the second quarter of 2014 from
70% in the same quarter of 2013.
General and administrative expenses for the second quarter of
2014 increased 128% compared to the prior year quarter, primarily
due to higher share-based compensation charges. General and
administrative expenses increased to 13% of net revenues in the
second quarter of 2014 from 7% in the same quarter of 2013.
Other operating income in the second quarter of 2014 of
RMB30.0 million consisted of
compensation paid by Tongcheng Network Technology Share Co., Ltd.
in May 2014 to terminate the
cooperation agreement entered into by eLong and Tongcheng in
April 2014.
Other income was RMB22.0 million
in the second quarter of 2014 compared to RMB13.4 million in the second quarter of 2013,
primarily due to increased government subsidies, partially offset
by higher foreign exchange losses.
Income tax benefit for the second quarter of 2014 was
RMB6.2 million, compared to income
tax expense of RMB43.1 million during
the prior year quarter.
Net income for the second quarter of 2014 was RMB31.5 million, compared to net loss of
RMB76.1 million during the prior year
quarter.
Basic net income per ADS and diluted net income per ADS for the
second quarter of 2014 was RMB0.90
(US$0.14) and RMB0.88 (US$0.14)
respectively, compared to basic net loss per ADS and diluted net
loss per ADS of RMB2.20 (US$0.36) in the prior year quarter.
As of June 30, 2014, eLong held
cash and cash equivalents, short-term investments and restricted
cash of RMB1.9 billion (US$311 million), of which 90% was held in
Renminbi and 10% was held in US dollars.
Business Outlook
eLong currently expects net revenues for the third quarter of
2014 to increase by 10% to 20% compared to the third quarter of
2013. This outlook reflects eLong's current and preliminary view,
which is subject to change.
Share Repurchase Program
Pursuant to eLong's publicly announced share repurchase program,
in the second quarter of 2014, eLong purchased 53,252 ADSs
(representing 106,504 ordinary shares) at a cost of US$0.7 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,
limit losses 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, Baidu (and its subsidiary Qunar) and
Qihoo for our search engine marketing, our reliance on maintaining
commercial cooperation with online hotel inventory distribution
partners, 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 investments in, and acquisitions of,
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, risks and uncertainties relating to litigation and
arbitration in China, 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
2014 unaudited financial results on August
8, 2014 at 8:30 am
Beijing time (August 7, 2014, 8:30 pm
ET). The dial-in number is +1-866-844-9413 for U.S.
participants; +852-3001-3802 for Hong
Kong participants; and 10800-712-1470 (China Unicom),
10800-120-1470 (China Telecom) and 86-400-810-4731 for participants
in mainland China. International
participants can also dial +1-210-795-0512. Pass code: eLong.
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
onlineaccomodations reservations in China offering consumers a leading network of
domestic and international properties worldwide. eLong uses
innovative technology to enable travelers to make informed lodging,
air and train ticket booking decisions through convenient mobile
and tablet applications, websites and easy to use tools such as
destination guides, photos, maps and user reviews. 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 COMPREHENSIVE INCOME
|
|
|
|
|
|
|
(IN THOUSANDS EXCEPT
PER SHARE AND PER ADS AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
Jun. 30,
2013
|
Mar. 31,
2014
|
Jun. 30,
2014
|
Jun. 30,
2014
|
|
Jun. 30,
2013
|
Jun. 30,
2014
|
Jun. 30,
2014
|
|
|
|
RMB
|
RMB
|
RMB
|
USD(1)
|
|
RMB
|
RMB
|
USD(1)
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Hotel
reservations
|
|
198,546
|
204,841
|
254,065
|
40,954
|
|
378,698
|
458,905
|
73,974
|
|
Air
ticketing
|
|
35,611
|
35,501
|
35,122
|
5,662
|
|
67,298
|
70,623
|
11,384
|
|
Other
|
|
17,524
|
22,362
|
23,237
|
3,746
|
|
36,728
|
45,600
|
7,351
|
|
Total
revenues
|
|
251,681
|
262,704
|
312,424
|
50,362
|
|
482,724
|
575,128
|
92,709
|
|
Business tax, VAT and
surcharges
|
(17,360)
|
(16,581)
|
(20,063)
|
(3,234)
|
|
(31,008)
|
(36,644)
|
(5,907)
|
|
Net
revenues
|
|
234,321
|
246,123
|
292,361
|
47,128
|
|
451,716
|
538,484
|
86,802
|
|
Cost of services
|
|
(59,872)
|
(66,822)
|
(70,888)
|
(11,427)
|
|
(114,690)
|
(137,710)
|
(22,198)
|
|
Gross
profit
|
|
174,449
|
179,301
|
221,473
|
35,701
|
|
337,026
|
400,774
|
64,604
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Service
development
|
|
(40,385)
|
(55,070)
|
(62,421)
|
(10,062)
|
|
(76,880)
|
(117,492)
|
(18,939)
|
|
Sales and
marketing
|
|
(164,952)
|
(136,093)
|
(149,074)
|
(24,031)
|
|
(277,567)
|
(285,167)
|
(45,969)
|
|
General and
administrative
|
|
(16,091)
|
(33,329)
|
(36,636)
|
(5,906)
|
|
(37,675)
|
(69,965)
|
(11,278)
|
|
Amortization of
intangible assets
|
(911)
|
(1,735)
|
(1,467)
|
(236)
|
|
(1,824)
|
(3,202)
|
(516)
|
|
Charges related to
property and equipment and intangible assets
|
|
-
|
-
|
-
|
-
|
|
(177)
|
-
|
-
|
|
Total operating
expenses
|
|
(222,339)
|
(226,227)
|
(249,598)
|
(40,235)
|
|
(394,123)
|
(475,826)
|
(76,702)
|
|
Other operating
income
|
|
-
|
-
|
30,000
|
4,836
|
|
-
|
30,000
|
4,836
|
|
Income/(loss) from
operations
|
(47,890)
|
(46,926)
|
1,875
|
302
|
|
(57,097)
|
(45,052)
|
(7,262)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
14,857
|
15,768
|
15,496
|
2,497
|
|
29,486
|
31,265
|
5,039
|
|
Government
subsidies
|
|
-
|
2,819
|
8,776
|
1,415
|
|
-
|
11,595
|
1,869
|
|
Foreign exchange
losses
|
|
(483)
|
(931)
|
(2,544)
|
(410)
|
|
(1,022)
|
(3,475)
|
(560)
|
|
Other
|
|
(949)
|
656
|
228
|
37
|
|
(428)
|
884
|
143
|
|
Total other
income
|
|
13,425
|
18,312
|
21,956
|
3,539
|
|
28,036
|
40,269
|
6,491
|
|
Income/(loss)
before income tax benefit/(expense)
|
(34,465)
|
(28,614)
|
23,831
|
3,841
|
|
(29,061)
|
(4,783)
|
(771)
|
|
Income tax
benefit/(expense)
|
|
(43,069)
|
(7,702)
|
6,230
|
1,004
|
|
(46,345)
|
(1,472)
|
(237)
|
|
Share of net
income/(loss) in non-consolidated
affiliates
|
1,426
|
(49)
|
311
|
50
|
|
2,070
|
261
|
42
|
|
Net
income/(loss)
|
|
(76,108)
|
(36,365)
|
30,371
|
4,895
|
|
(73,336)
|
(5,994)
|
(966)
|
|
Net loss attributable
to noncontrolling interests
|
-
|
996
|
1,091
|
176
|
|
-
|
2,087
|
336
|
|
Net income/(loss)
attributable to eLong, Inc.
|
(76,108)
|
(35,369)
|
31,462
|
5,071
|
|
(73,336)
|
(3,907)
|
(630)
|
|
Other comprehensive
income
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
Total
comprehensive income
|
|
(76,108)
|
(35,369)
|
31,462
|
5,071
|
|
(73,336)
|
(3,907)
|
(630)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per share
|
(1.10)
|
(0.50)
|
0.45
|
0.07
|
|
(1.06)
|
(0.06)
|
(0.01)
|
|
Diluted net
income/(loss) per share
|
(1.10)
|
(0.50)
|
0.44
|
0.07
|
|
(1.06)
|
(0.06)
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per ADS(2)(3)
|
(2.20)
|
(1.00)
|
0.90
|
0.14
|
|
(2.12)
|
(0.12)
|
(0.02)
|
|
Diluted net
income/(loss) per ADS(2)(3)
|
(2.20)
|
(1.00)
|
0.88
|
0.14
|
|
(2.12)
|
(0.12)
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income/(loss) per share:
|
|
|
|
|
|
|
|
Basic
|
|
69,201
|
70,486
|
70,657
|
70,657
|
|
69,103
|
70,572
|
70,572
|
|
Diluted
|
|
69,201
|
70,486
|
71,392
|
71,392
|
|
69,103
|
70,572
|
70,572
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation charges included in:
|
|
6,516
|
28,858
|
33,633
|
5,421
|
|
16,954
|
62,491
|
10,073
|
|
Cost of
services
|
|
560
|
836
|
896
|
144
|
|
1,176
|
1,732
|
279
|
|
Service
development
|
|
3,264
|
6,535
|
7,178
|
1,157
|
|
6,744
|
13,713
|
2,210
|
|
Sales and
marketing
|
|
897
|
3,332
|
3,976
|
641
|
|
2,252
|
7,307
|
1,178
|
|
General
and administrative
|
|
1,795
|
18,155
|
21,583
|
3,479
|
|
6,782
|
39,739
|
6,406
|
|
Note 1: The
conversion of Renminbi (RMB) into United States dollars (USD) is
based on the noon buying rate of USD1.00=RMB6.2036 on June 30, 2014
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,
2013
|
|
Jun. 30,
2014
|
|
Jun. 30,
2014
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
367,061
|
|
330,731
|
|
53,313
|
Short-term
investments
|
|
1,485,800
|
|
1,497,710
|
|
241,426
|
Restricted
cash
|
|
103,440
|
|
103,486
|
|
16,682
|
Accounts receivable,
net
|
|
168,093
|
|
194,925
|
|
31,421
|
Amounts due from
related parties
|
|
66,143
|
|
98,254
|
|
15,838
|
Prepaid
expenses
|
|
33,652
|
|
55,013
|
|
8,868
|
Deferred tax assets,
current
|
|
6,604
|
|
7,712
|
|
1,243
|
Other current
assets
|
|
75,880
|
|
72,184
|
|
11,636
|
Total current
assets
|
|
2,306,673
|
|
2,360,015
|
|
380,427
|
Property and
equipment, net
|
|
87,980
|
|
96,596
|
|
15,571
|
Investment in
non-consolidated affiliates
|
|
52,067
|
|
91,409
|
|
14,735
|
Goodwill
|
|
96,256
|
|
96,256
|
|
15,516
|
Intangible assets,
net
|
|
16,366
|
|
13,432
|
|
2,165
|
Deferred tax assets,
non-current
|
|
11,140
|
|
13,899
|
|
2,241
|
Other non-current
assets
|
|
58,194
|
|
51,152
|
|
8,245
|
Total non-current
assets
|
|
322,003
|
|
362,744
|
|
58,473
|
Total
assets
|
|
2,628,676
|
|
2,722,759
|
|
438,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
176,769
|
|
210,255
|
|
33,892
|
Income taxes
payable
|
|
22,633
|
|
4,933
|
|
795
|
Amounts due to related
parties
|
|
97,010
|
|
90,761
|
|
14,630
|
Deferred
revenue
|
|
21,198
|
|
70,144
|
|
11,307
|
Accrued expenses and
other current liabilities
|
|
337,903
|
|
316,514
|
|
51,022
|
Total current
liabilities
|
|
655,513
|
|
692,607
|
|
111,646
|
Deferred tax
liabilities, non-current
|
|
2,034
|
|
3,495
|
|
564
|
Other
liabilities
|
|
45
|
|
45
|
|
7
|
Total non-current
liabilities
|
|
2,079
|
|
3,540
|
|
571
|
Total
liabilities
|
|
657,592
|
|
696,147
|
|
112,217
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
2,864
|
|
2,865
|
|
462
|
High-vote ordinary
shares
|
|
2,691
|
|
2,691
|
|
434
|
Treasury stock, at
cost
|
|
(30,930)
|
|
(22,343)
|
|
(3,602)
|
Additional paid-in
capital
|
|
2,298,133
|
|
2,359,414
|
|
380,330
|
Statutory
reserves
|
|
20,123
|
|
20,123
|
|
3,244
|
Accumulated
deficit
|
|
(340,892)
|
|
(353,489)
|
|
(56,982)
|
Total eLong Inc.
shareholders' equity
|
|
1,951,989
|
|
2,009,261
|
|
323,886
|
Noncontrolling
interest
|
|
19,095
|
|
17,351
|
|
2,797
|
Total shareholders'
equity
|
|
1,971,084
|
|
2,026,612
|
|
326,683
|
Total liabilities
and shareholders' equity
|
|
2,628,676
|
|
2,722,759
|
|
438,900
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
2013
(Unaudited)
|
2014
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2013
|
Q1
|
Q2
|
|
|
|
|
|
|
|
|
Hotel
Reservations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
Nights
|
4,877
|
5,803
|
7,725
|
7,413
|
25,818
|
6,980
|
8,348
|
Room Night
Y/Y
|
71%
|
58%
|
68%
|
48%
|
60%
|
43%
|
44%
|
Average Daily Rate
Y/Y
|
(4%)
|
(5%)
|
(3%)
|
2%
|
(2%)
|
(2%)
|
(4%)
|
Commission/Room Night
Y/Y
|
(15%)
|
(18%)
|
(3%)
|
(13%)
|
(12%)
|
(21%)
|
(11%)
|
Hotel Commissions
Y/Y
|
47%
|
29%
|
63%
|
28%
|
41%
|
14%
|
28%
|
|
|
|
|
|
|
|
|
Air
Ticketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Air
Segments
|
672
|
671
|
863
|
828
|
3,034
|
724
|
699
|
Air Segments
Y/Y
|
21%
|
28%
|
30%
|
30%
|
28%
|
8%
|
4%
|
Average Ticket Price
Y/Y
|
(1%)
|
(10%)
|
(7%)
|
(2%)
|
(5%)
|
1%
|
(1%)
|
Commission/Segment
Y/Y
|
(4%)
|
(7%)
|
(23%)
|
(21%)
|
(15%)
|
4%
|
(5%)
|
Air Commissions
Y/Y
|
17%
|
19%
|
(0%)
|
3%
|
9%
|
12%
|
(1%)
|
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 a 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
(Unaudited)
|
2014
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2013
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to eLong, Inc.
|
2,773
|
(76,108)
|
(50,394)
|
(44,001)
|
(167,730)
|
(35,369)
|
31,462
|
Net loss attributable
to noncontrolling interests
|
-
|
-
|
-
|
(475)
|
(475)
|
(996)
|
(1,091)
|
Interest
income
|
(14,629)
|
(14,857)
|
(15,643)
|
(15,061)
|
(60,190)
|
(15,768)
|
(15,496)
|
Government
subsidies
|
(387)
|
-
|
(1,034)
|
(5,948)
|
(7,369)
|
(2,819)
|
(8,776)
|
Income tax
expense/(benefit)
|
3,276
|
43,069
|
9,603
|
3,532
|
59,480
|
7,702
|
(6,230)
|
Depreciation
|
7,759
|
8,420
|
8,467
|
8,531
|
33,177
|
9,123
|
10,064
|
Amortization of
intangible assets
|
913
|
911
|
911
|
1,230
|
3,965
|
1,735
|
1,467
|
Share-based
compensation charges
|
10,439
|
6,516
|
15,396
|
30,987
|
63,338
|
28,858
|
33,633
|
Foreign exchange
losses
|
539
|
483
|
377
|
532
|
1,931
|
931
|
2,544
|
Other
|
(602)
|
(476)
|
(765)
|
(114)
|
(1,957)
|
(510)
|
(539)
|
Adjusted
EBITDA
|
10,081
|
(32,042)
|
(33,081)
|
(20,787)
|
(75,830)
|
(7,113)
|
47,038
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
(Unaudited)
|
2014
(Unaudited)
|
|
Q1
|
Q2
|
Q3
|
Q4
|
2013
|
Q1
|
Q2
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to eLong, Inc.
|
2,773
|
(76,108)
|
(50,394)
|
(44,001)
|
(167,730)
|
(35,369)
|
31,462
|
Net loss attributable
to noncontrolling interests
|
-
|
-
|
-
|
(475)
|
(475)
|
(996)
|
(1,091)
|
Share-based
compensation charges
|
10,439
|
6,516
|
15,396
|
30,987
|
63,338
|
28,858
|
33,633
|
Amortization of
intangible assets
|
913
|
911
|
911
|
1,230
|
3,965
|
1,735
|
1,467
|
Foreign exchange
losses
|
539
|
483
|
377
|
532
|
1,931
|
931
|
2,544
|
Other
|
(80)
|
608
|
(185)
|
1,187
|
1,530
|
(390)
|
(150)
|
Adjusted net
income/(loss)
|
14,584
|
(67,590)
|
(33,895)
|
(10,540)
|
(97,441)
|
(5,231)
|
67,865
|
|
|
|
|
|
|
|
|
Shares used in
computing adjusted net income/(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted
average shares outstanding
|
69,733
|
69,201
|
69,668
|
69,934
|
69,455
|
70,486
|
71,392
|
Additional
performance units
|
1,640
|
1,687
|
2,878
|
7,590
|
3,503
|
7,428
|
7,423
|
Adjusted weighted
average shares outstanding
|
71,373
|
70,888
|
72,546
|
77,524
|
72,958
|
77,914
|
78,815
|
|
|
|
|
|
|
|
|
Adjusted net
income/(loss) per share
|
0.20
|
(0.95)
|
(0.47)
|
(0.14)
|
(1.34)
|
(0.07)
|
0.86
|
SOURCE eLong, Inc.