UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2015
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Commission File Number: 001-50984
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eLong, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Block B, Xingke Plaza Building
10 Middle Jiuxianqiao Road
Chaoyang District
Beijing 10015, People’s Republic of China
(Address of principal executive office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________
Press Releases
On August 3, 2015, the registrant announced
its unaudited financial results for the second quarter ended June 30, 2015. A copy of the press release issued by the registrant
regarding the foregoing is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Exhibits.
| 99.1 |
Press release regarding financial results for the second quarter ended June 30, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
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ELONG, INC. |
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By |
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/s/ Philip Yang |
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Name |
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Philip Yang |
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Title |
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Chief Financial Officer |
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Date: August 3, 2015
Exhibit
99.1
eLong Reports Second Quarter 2015 Unaudited
Financial Results
¨Quarterly
room nights exceed 11 million for the first time in eLong’s history
BEIJING, August 3, 2015 /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, 2015.
Highlights
| n | Accommodation reservation1
room nights stayed in the second quarter increased 36% to 11.4 million room nights compared to 8.3 million in the
prior year period. |
| n | Gross revenue earned from accommodation reservation (Non-GAAP)2
reached RMB363 million, increasing 10% in the second quarter of 2015 compared to the same period in 2014. Accommodation reservation
revenue (GAAP) was RMB199 million, decreasing 22% year-on-year in the second quarter of 2015. Net commissions earned from
accommodation reservation (Non-GAAP)3 were RMB152
million, decreasing 40% year-on-year in the second quarter of 2015. |
| Accommodation Reservation Revenue, Gross Revenue
and Net Commissions Earned From Accommodation Reservation | |
| (IN THOUSANDS) | |
| | |
2014 Q2 | | |
2015 Q1 | | |
2015 Q2 | |
| | |
RMB | | |
RMB | | |
RMB | |
| | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | |
| | |
| | | |
| | | |
| | |
| Gross revenue earned from accommodation reservation (Non-GAAP) | |
| 328,741 | | |
| 360,874 | | |
| 363,044 | |
| Cash rebates from the coupon program in our agency accommodation business | |
| (74,676 | ) | |
| (123,670 | ) | |
| (140,676 | ) |
| Portion of loss in our significantly-discounted merchant accommodation business | |
| - | | |
| (46,953 | ) | |
| (23,471 | ) |
| Accommodation reservation revenue (GAAP) | |
| 254,065 | | |
| 190,251 | | |
| 198,897 | |
| The excess of gross-up revenues over commissions for inventory risk taking accommodation transactions | |
| - | | |
| (72,401 | ) | |
| (46,598 | ) |
| Net commissions earned from accommodation reservation (Non-GAAP) | |
| 254,065 | | |
| 117,850 | | |
| 152,299 | |
| n | Mobile bookings comprised more than 75% of eLong brand room nights4
in the second quarter, and cumulative downloads of eLong mobile apps reached approximately 290 million. |
| n | Domestic hotel coverage network expanded 142% to over 290,000 domestic hotels as of June
30, 2015, compared to 120,000 as of June 30, 2014. |
1
“Accommodation reservation” mainly represents the reservation of hotels, guesthouses,
apartments and other accommodation-related services. In our press releases regarding our financial results for periods before 2015,
we used “hotel reservation” when referring to this same operational matrix. We believe that “accommodation”
better describes the diversified lodging and accommodation services that we offer.
2
“Gross revenue earned from accommodation reservation (Non-GAAP)” is defined
as accommodation reservation revenue (GAAP) plus (1) cash rebates to customers from the coupon program in our agency accommodation
business that were recorded as contra revenue; and (2) the portion of the loss from significant direct discounts in our merchant
accommodation business that was recorded as contra revenue.
3
“Net commissions earned from accommodation reservation (Non-GAAP)” are defined as accommodation reservation revenue
(GAAP) minus the excess of gross-up revenues over our commissions for accommodation reservation transactions, where we take inventory
risk and accordingly recognize revenues on a gross basis.
4
“eLong brand room nights” excludes room nights from non-eLong brand distribution partners
and resellers.
| n | More than 50,000 properties have contracted to use the free, cloud-based, multi-device hotel
property management systems, Yunzhanggui and Zhuzhe, produced by our investee companies. |
| n | On May 22, 2015, Expedia Asia Pacific-Alpha, Ltd., a wholly-owned subsidiary of Expedia, Inc.,
sold all of its interest in us to C-Travel International, Ltd. (“C-Travel”), a wholly-owned subsidiary of Ctrip.com
International, Ltd. (Nasdaq: CTRP); Keystone Lodging Holdings Limited (“Keystone”) and Plateno Group Limited (“Plateno”);
and Luxuriant Holdings Limited (“Luxuriant”) (the “Deal”). Upon the completion of the Deal, C-Travel held
a 37.6% equity interest including a small interest purchased from our former chief executive officer; Keystone and Plateno, which
is an indirect subsidiary of Keystone, together held a 22.2% equity interest; and Luxuriant held a 3.7% equity interest. |
“We are facing fierce competition
in China, but eLong is well positioned with a strong leadership team, significant customer base, and adequate cash balance. The
eLong board of directors and management team will focus more on the mobile accommodation market place and invest more in mobile
products, our technology team and promotion to achieve a solid room night growth rate with more balance between our revenues and
spending,” said Hao Jiang, Chief Executive Officer of eLong. “We believe the accommodation space is large enough for
significant future growth for us and will drive eLong to be an accommodation-focused company.”
Business Results
Total Revenues
Total revenues by
product for the second quarter of 2015 as compared to the same period in 2014 were as follows (in RMB million):
| | |
Q2 2015 | | |
% Total | | |
Q2 2014 | | |
% Total | | |
Y/Y Growth | |
| Accommodation reservation | |
| 198.9 | | |
| 85 | % | |
| 254.1 | | |
| 81 | % | |
| (22 | %) |
| Transportation ticketing 5 | |
| 24.6 | | |
| 11 | % | |
| 35.1 | | |
| 11 | % | |
| (30 | %) |
| Other | |
| 10.7 | | |
| 4 | % | |
| 23.2 | | |
| 8 | % | |
| (54 | %) |
| Total revenues | |
| 234.2 | | |
| 100 | % | |
| 312.4 | | |
| 100 | % | |
| (25 | %) |
Net Revenues
Net revenues for the second quarter decreased
25% to RMB218.5 million (US$35.2 million), compared to RMB292.4 million (US$47.1 million) in the second quarter of 2014.
Accommodation Reservation
Accommodation reservation revenue decreased
22% in the second quarter of 2015 compared to the same period in 2014, primarily due to lower revenue per room night, partially
offset by higher volume. Room nights stayed in the second quarter increased 36% year-on-year to 11.4 million, and revenue per
room night decreased due to the growth of our aggressive coupon program, the significant direct discounts in our merchant accommodation
business, and the lower commission rate room nights for which we recognize revenues on a net basis, partially offset by the growth
of room night transactions for which we take inventory risk and recognize revenues on a gross basis. Accommodation reservation
revenue comprised 85% of total revenues, compared to 81% in the prior year quarter.
5
“Transportation ticketing” mainly represents the reservation of air tickets, train tickets,
travel insurances, and other transportation-related services. Prior to 2015, we reported our revenues generated from the reservation
of train tickets, travel insurance and other transportation-related services in the aggregate as “Other” revenues.
We also no longer report “air ticketing” revenues separately from revenues from train tickets, travel insurances, and
other transportation-related services in our consolidated statements of comprehensive (loss)/income, which we had done prior to
2015.
Transportation Ticketing
Transportation tickets increased to 1.6
million in the second quarter, representing an increase of 89% compared to the prior year period, primarily due to the growth of
train tickets. Transportation ticketing revenue decreased 30% in the second quarter, primarily due to a decrease in air commission
revenue per ticket. The decline in air commission revenue per ticket was primarily due to the lowering by major Chinese airlines
of the base air commission rate from 3% to 2% in July 2014, then to 1% in February 2015 and further to 0% in June 2015. Transportation
ticketing revenue accounted for 11% of our total revenues, consistent with the prior year quarter.
Other
Other revenues are primarily derived from
advertising business. Other revenue decreased by 54% year-on-year in the second quarter of 2015, mainly driven by decreased advertising
revenue as a result of our disposition of Nanjing Xici Information Technology Share Co., Ltd. in the first quarter of 2015. Other
revenues decreased to 4% of total revenues in the second quarter from 8% in the prior year quarter.
Gross Margin
Gross margin in the second quarter of 2015
decreased to 39% from 76% in the prior year quarter. The decline in gross margin in the second quarter of 2015 was primarily due
to lower revenue per room night and the growth of room night transactions for which we take inventory risk and recognize revenue
on a gross basis.
Operating Expenses
Operating expenses for the second quarter
of 2015 as compared to the same period in 2014 were as follows (in RMB million):
| | |
Q2 2015 | | |
% of Net Revenue | | |
Q2 2014 | | |
% of Net Revenue | | |
Y/Y Growth | |
| Service development | |
| 135.5 | | |
| 62 | % | |
| 62.4 | | |
| 21 | % | |
| 117 | % |
| Sales and marketing | |
| 165.1 | | |
| 76 | % | |
| 149.1 | | |
| 51 | % | |
| 11 | % |
| General and administrative | |
| 155.5 | | |
| 71 | % | |
| 36.6 | | |
| 13 | % | |
| 324 | % |
| Amortization of intangible assets | |
| 5.3 | | |
| 2 | % | |
| 1.5 | | |
| - | | |
| 261 | % |
| Total operating expenses | |
| 461.4 | | |
| 211 | % | |
| 249.6 | | |
| 85 | % | |
| 85 | % |
Total operating expenses increased by 85%
in the second quarter of 2015, compared to the prior year period. Operating expenses were 211% of net revenue in the second quarter
of 2015, compared to 85% in the prior year quarter. Operating loss was RMB377.2 million in the second quarter of 2015, compared
to operating income of RMB1.9 million in the prior year quarter.
Service development expenses are expenses
related to technology and our product offerings, including our mobile applications and websites, as well as our supplier relations
function. In the second quarter of 2015, service development expenses increased 117%, primarily due to increased headcount and
higher share-based compensation charges from the accelerated vesting of restricted shares for certain employees. Service development
expenses increased to 62% of net revenues in the second quarter of 2015, compared to 21% in the second quarter of 2014. Excluding
share-based compensation charges, service development expenses accounted for 44% of the net revenues, an increase from 19% in the
second quarter of 2014 (the exclusion of share-based compensation charges is a non-GAAP financial measure).
Sales and marketing expenses for the second
quarter of 2015 increased 11% over the prior year quarter, driven by increased costs for new mobile customer acquisition and increased
mobile and online marketing expenses, partially offset by an RMB88.8 million reduction in sales and marketing expenses, as Beijing
Qunar Software Technology Co. Ltd. (“Qunar”) compensated us that amount through a credit to our advertising account
at Qunar following the Beijing Municipal High Court’s issuance of a final judgment in our contract dispute with Qunar. Sales
and marketing expenses increased to 76% of net revenues in the second quarter of 2015 from 51% in the second quarter of 2014.
General and administrative expenses for
the second quarter of 2015 increased 324% compared to the prior year quarter, driven by higher share-based compensation charges
from the accelerated vesting of restricted shares for our former chief executive officer in connection with the Deal and certain
other employees. General and administrative expenses increased to 71% of net revenues in the second quarter of 2015 from 13% in
the second quarter of 2014. Excluding share-based compensation charges, general and administrative expenses were 11% of net revenues,
an increase from 5% in the second quarter of 2014 (the exclusion of share-based compensation charges is a non-GAAP financial measure).
Other income was RMB20.0 million in the
second quarter of 2015 compared to other income of RMB22.0 million in the second quarter of 2014.
Income tax expense for the second quarter
of 2015 was RMB1.2 million, compared to income tax benefit of RMB6.2 million during the prior year quarter.
Net loss for the second quarter of 2015
was RMB356.4 million, compared to net income of RMB31.5 million during the prior year quarter.
Basic net loss per ADS and diluted net
loss per ADS for the second quarter of 2015 were each RMB9.82 (US$1.58), compared to basic net income per ADS and diluted net income
per ADS was RMB0.90 (US$0.14) and RMB0.88 (US$0.14) respectively in the prior year quarter.
As of June 30, 2015, eLong held cash and
cash equivalents, short-term investments and restricted cash of RMB1.5 billion (US$246 million), of which 87% was held in Renminbi
and 13% was held in US dollars.
Safe Harbor Statement
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 return to 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 to 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 Ctrip’s large ownership
interest 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, risks relating to the application of preferential tax
policies, the risk that eLong will continue to incur losses, 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
2015 unaudited financial results on August 4, 2015 at 10:00 am Beijing time (August 3, 2015, 10:00 pm EDT). The dial-in number
is +1-866-297-1588 for U.S. participants; +852-3001-3842 for Hong Kong participants; and 86-400-810-4761 for participants in mainland
China. International participants can dial +1-210-795-1143. Participant pass code: 5083685. 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/.
About eLong, Inc.
eLong, Inc.
(Nasdaq: LONG) is a leader in mobile and online
accomodations reservations in China. eLong technology enables travelers to book hotels, guesthouses, apartments and other accommodations,
as well as air and train tickets, through convenient mobile and tablet applications (m.eLong.com),
websites (www.eLong.com), 24 hour customer service, and easy to use tools such as destination guides, maps and user reviews.
eLong’s largest shareholders are Ctrip.com International, Ltd. (Nasdaq: CTRP); Keystone Lodging Holdings Limited
and Plateno Group Limited together; and Tencent Holdings Ltd. (HKSE: 0700).
For further information, please contact:
eLong, Inc.
Investor Relations
ir@corp.elong.com
+86-10-6436-7570
eLong, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(IN THOUSANDS
EXCEPT PER SHARE AND PER ADS AMOUNTS)
| | |
Three
Months Ended | | |
Six
Months Ended | |
| | |
Jun.
30,
2014 | | |
Mar.
31,
2015 | | |
Jun.
30,
2015 | | |
Jun.
30,
2015 | | |
Jun.
30,
2014 | | |
Jun.
30,
2015 | | |
Jun.
30,
2015 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD(1) | | |
RMB | | |
RMB | | |
USD(1) | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | |
| Revenues: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Accommodation
reservation* | |
| 254,065 | | |
| 190,251 | | |
| 198,897 | | |
| 32,081 | | |
| 458,905 | | |
| 389,148 | | |
| 62,766 | |
| Transportation
ticketing** | |
| 35,122 | | |
| 25,078 | | |
| 24,636 | | |
| 3,973 | | |
| 70,623 | | |
| 49,713 | | |
| 8,018 | |
| Other | |
| 23,237 | | |
| 10,427 | | |
| 10,660 | | |
| 1,719 | | |
| 45,600 | | |
| 21,088 | | |
| 3,401 | |
| Total revenues | |
| 312,424 | | |
| 225,756 | | |
| 234,193 | | |
| 37,773 | | |
| 575,128 | | |
| 459,949 | | |
| 74,185 | |
| Business
tax, VAT and surcharges | |
| (20,063 | ) | |
| (13,833 | ) | |
| (15,661 | ) | |
| (2,526 | ) | |
| (36,644 | ) | |
| (29,494 | ) | |
| (4,757 | ) |
| Net revenues | |
| 292,361 | | |
| 211,923 | | |
| 218,532 | | |
| 35,247 | | |
| 538,484 | | |
| 430,455 | | |
| 69,428 | |
| Cost
of services | |
| (70,888 | ) | |
| (150,663 | ) | |
| (134,322 | ) | |
| (21,665 | ) | |
| (137,710 | ) | |
| (284,985 | ) | |
| (45,965 | ) |
| Gross profit | |
| 221,473 | | |
| 61,260 | | |
| 84,210 | | |
| 13,582 | | |
| 400,774 | | |
| 145,470 | | |
| 23,463 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Service
development | |
| (62,421 | ) | |
| (92,656 | ) | |
| (135,521 | ) | |
| (21,858 | ) | |
| (117,492 | ) | |
| (228,177 | ) | |
| (36,803 | ) |
| Sales
and marketing | |
| (149,074 | ) | |
| (167,220 | ) | |
| (165,094 | ) | |
| (26,628 | ) | |
| (285,167 | ) | |
| (332,314 | ) | |
| (53,599 | ) |
| General
and administrative | |
| (36,636 | ) | |
| (48,354 | ) | |
| (155,458 | ) | |
| (25,074 | ) | |
| (69,965 | ) | |
| (203,812 | ) | |
| (32,873 | ) |
| Amortization
of intangible assets | |
| (1,467 | ) | |
| (5,339 | ) | |
| (5,299 | ) | |
| (855 | ) | |
| (3,202 | ) | |
| (10,638 | ) | |
| (1,716 | ) |
| Total operating
expenses | |
| (249,598 | ) | |
| (313,569 | ) | |
| (461,372 | ) | |
| (74,415 | ) | |
| (475,826 | ) | |
| (774,941 | ) | |
| (124,991 | ) |
| Other
operating income | |
| 30,000 | | |
| - | | |
| - | | |
| - | | |
| 30,000 | | |
| - | | |
| - | |
| (Loss)/income
from operations | |
| 1,875 | | |
| (252,309 | ) | |
| (377,162 | ) | |
| (60,833 | ) | |
| (45,052 | ) | |
| (629,471 | ) | |
| (101,528 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other income: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest
income | |
| 15,496 | | |
| 14,050 | | |
| 11,510 | | |
| 1,857 | | |
| 31,265 | | |
| 25,559 | | |
| 4,122 | |
| Government
subsidy | |
| 8,776 | | |
| 1,339 | | |
| 9,425 | | |
| 1,520 | | |
| 11,595 | | |
| 10,763 | | |
| 1,736 | |
| Foreign
exchange losses | |
| (2,544 | ) | |
| (1,364 | ) | |
| (988 | ) | |
| (159 | ) | |
| (3,475 | ) | |
| (2,352 | ) | |
| (379 | ) |
| Gain
from disposition of subsidiary | |
| - | | |
| 71,762 | | |
| - | | |
| - | | |
| - | | |
| 71,718 | | |
| 11,567 | |
| Other | |
| 228 | | |
| 509 | | |
| 82 | | |
| 13 | | |
| 884 | | |
| 637 | | |
| 103 | |
| Total other income | |
| 21,956 | | |
| 86,296 | | |
| 20,029 | | |
| 3,231 | | |
| 40,269 | | |
| 106,325 | | |
| 17,149 | |
| (Loss)/income
before income tax (expense)/benefit | |
| 23,831 | | |
| (166,013 | ) | |
| (357,133 | ) | |
| (57,602 | ) | |
| (4,783 | ) | |
| (523,146 | ) | |
| (84,379 | ) |
| Income
tax (expense)/benefit | |
| 6,230 | | |
| (16,882 | ) | |
| (1,210 | ) | |
| (195 | ) | |
| (1,472 | ) | |
| (18,092 | ) | |
| (2,918 | ) |
| Share
of net (loss)/income in non-consolidated affiliates | |
| 311 | | |
| (598 | ) | |
| (1,697 | ) | |
| (274 | ) | |
| 261 | | |
| (2,295 | ) | |
| (370 | ) |
| Net (loss)/income | |
| 30,371 | | |
| (183,493 | ) | |
| (360,040 | ) | |
| (58,071 | ) | |
| (5,994 | ) | |
| (543,533 | ) | |
| (87,667 | ) |
| Net
loss attributable to noncontrolling interests | |
| 1,091 | | |
| 2,786 | | |
| 3,681 | | |
| 594 | | |
| 2,087 | | |
| 6,467 | | |
| 1,043 | |
| Net (loss)/income
attributable to eLong, Inc. | |
| 31,462 | | |
| (180,707 | ) | |
| (356,359 | ) | |
| (57,477 | ) | |
| (3,907 | ) | |
| (537,066 | ) | |
| (86,624 | ) |
| Other
comprehensive income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Total comprehensive
(loss)/income | |
| 31,462 | | |
| (180,707 | ) | |
| (356,359 | ) | |
| (57,477 | ) | |
| (3,907 | ) | |
| (537,066 | ) | |
| (86,624 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net (loss)/income
per share | |
| 0.45 | | |
| (2.51 | ) | |
| (4.91 | ) | |
| (0.79 | ) | |
| (0.06 | ) | |
| (7.43 | ) | |
| (1.20 | ) |
| Diluted net (loss)/income
per share | |
| 0.44 | | |
| (2.51 | ) | |
| (4.91 | ) | |
| (0.79 | ) | |
| (0.06 | ) | |
| (7.43 | ) | |
| (1.20 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net (loss)/income
per ADS(2)(3) | |
| 0.90 | | |
| (5.02 | ) | |
| (9.82 | ) | |
| (1.58 | ) | |
| (0.12 | ) | |
| (14.86 | ) | |
| (2.40 | ) |
| Diluted net (loss)/income
per ADS(2)(3) | |
| 0.88 | | |
| (5.02 | ) | |
| (9.82 | ) | |
| (1.58 | ) | |
| (0.12 | ) | |
| (14.86 | ) | |
| (2.40 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Shares used in
computing net (loss)/income per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 70,657 | | |
| 71,967 | | |
| 72,606 | | |
| 72,606 | | |
| 70,572 | | |
| 72,289 | | |
| 72,289 | |
| Diluted | |
| 71,392 | | |
| 71,967 | | |
| 72,606 | | |
| 72,606 | | |
| 70,572 | | |
| 72,289 | | |
| 72,289 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation
charges included in: | |
| 33,633 | | |
| 27,338 | | |
| 182,771 | | |
| 29,480 | | |
| 62,491 | | |
| 210,109 | | |
| 33,888 | |
| Cost
of services | |
| 896 | | |
| 138 | | |
| 6,342 | | |
| 1,023 | | |
| 1,732 | | |
| 6,481 | | |
| 1,045 | |
| Service
development | |
| 7,178 | | |
| 3,879 | | |
| 39,851 | | |
| 6,428 | | |
| 13,713 | | |
| 43,730 | | |
| 7,053 | |
| Sales
and marketing | |
| 3,976 | | |
| (838 | ) | |
| 5,547 | | |
| 895 | | |
| 7,307 | | |
| 4,709 | | |
| 759 | |
| General
and administrative | |
| 21,583 | | |
| 24,159 | | |
| 131,031 | | |
| 21,134 | | |
| 39,739 | | |
| 155,189 | | |
| 25,031 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
* Accommodation reservation revenue mainly represents revenues
from the reservation of hotels, guesthouses, apartments and other accommodation-related services. |
|
|
| ** Transportation ticketing revenues mainly represent revenues from the reservation of air tickets, train tickets, travel insurances, and other transportation-related services. |
|
|
| Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB6.2000 on June 30, 2015 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 |
|
|
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|
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|
|
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|
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| Note 4: Certain items in prior periods’ consolidated statements of comprehensive (loss)/income have been reclassified to conform to the current period’s presentation in order to facilitate comparison. |
|
|
eLong, Inc.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| | |
Dec. 31, 2014 | | |
Jun. 30, 2015 | | |
Jun. 30, 2015 | |
| | |
RMB | | |
RMB | | |
USD | |
| | |
(Audited) | | |
(Unaudited) | | |
(Unaudited) | |
| ASSETS | |
| | |
| | |
| |
| Current assets: | |
| | |
| | |
| |
| Cash and cash equivalents | |
| 504,890 | | |
| 488,189 | | |
| 78,740 | |
| Short-term investments | |
| 1,306,634 | | |
| 906,040 | | |
| 146,135 | |
| Restricted cash | |
| 123,937 | | |
| 131,605 | | |
| 21,227 | |
| Accounts receivable, net | |
| 295,632 | | |
| 396,118 | | |
| 63,890 | |
| Amounts due from related parties | |
| 52,021 | | |
| 20,487 | | |
| 3,304 | |
| Prepaid expenses | |
| 55,417 | | |
| 150,601 | | |
| 24,290 | |
| Deferred tax assets, current | |
| 304 | | |
| - | | |
| - | |
| Advance to suppliers | |
| 75,285 | | |
| 93,531 | | |
| 15,086 | |
| Other current assets | |
| 104,923 | | |
| 86,311 | | |
| 13,922 | |
| Total current assets | |
| 2,519,043 | | |
| 2,272,882 | | |
| 366,594 | |
| Property and equipment, net | |
| 112,356 | | |
| 113,795 | | |
| 18,354 | |
| Investment in non-consolidated affiliates | |
| 96,942 | | |
| 111,347 | | |
| 17,959 | |
| Goodwill | |
| 181,322 | | |
| 184,242 | | |
| 29,716 | |
| Intangible assets, net | |
| 84,749 | | |
| 75,892 | | |
| 12,241 | |
| Deferred tax assets, non-current | |
| 516 | | |
| - | | |
| - | |
| Other non-current assets | |
| 51,123 | | |
| 51,413 | | |
| 8,293 | |
| Total non-current assets | |
| 527,008 | | |
| 536,689 | | |
| 86,563 | |
| Total assets | |
| 3,046,051 | | |
| 2,809,571 | | |
| 453,157 | |
| | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payable | |
| 442,489 | | |
| 703,230 | | |
| 113,425 | |
| Income taxes payable | |
| 13 | | |
| 1,242 | | |
| 200 | |
| Amounts due to related parties | |
| 127,910 | | |
| 4,881 | | |
| 787 | |
| Deferred revenue | |
| 47,544 | | |
| 49,621 | | |
| 8,003 | |
| Advances and deposits from customers | |
| 121,934 | | |
| 91,779 | | |
| 14,803 | |
| eCoupon program virtual cash liability | |
| 135,648 | | |
| 164,856 | | |
| 26,590 | |
| Accrued expenses and other current liabilities | |
| 292,310 | | |
| 317,409 | | |
| 51,195 | |
| Total current liabilities | |
| 1,167,848 | | |
| 1,333,018 | | |
| 215,003 | |
| Deferred tax liabilities, non-current | |
| 21,187 | | |
| 21,187 | | |
| 3,417 | |
| Other liabilities | |
| 44 | | |
| 1,977 | | |
| 319 | |
| Total non-current liabilities | |
| 21,231 | | |
| 23,164 | | |
| 3,736 | |
| Total liabilities | |
| 1,189,079 | | |
| 1,356,182 | | |
| 218,739 | |
| | |
| | | |
| | | |
| | |
| Shareholders’ equity | |
| | | |
| | | |
| | |
| Ordinary shares | |
| 2,908 | | |
| 2,947 | | |
| 475 | |
| High-vote ordinary shares | |
| 2,691 | | |
| 2,691 | | |
| 434 | |
| Additional paid-in capital | |
| 2,397,868 | | |
| 2,543,986 | | |
| 410,320 | |
| Statutory reserves | |
| 3,665 | | |
| 3,593 | | |
| 580 | |
| Accumulated deficit | |
| (626,810 | ) | |
| (1,167,967 | ) | |
| (188,382 | ) |
| Total eLong, Inc. shareholders’ equity | |
| 1,780,322 | | |
| 1,385,250 | | |
| 223,427 | |
| Noncontrolling interest | |
| 76,650 | | |
| 68,139 | | |
| 10,991 | |
| Total shareholders’ equity | |
| 1,856,972 | | |
| 1,453,389 | | |
| 234,418 | |
| Total liabilities and shareholders’ equity | |
| 3,046,051 | | |
| 2,809,571 | | |
| 453,157 | |
| | |
| | | |
| | | |
| | |
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 (loss)/income per ADS, diluted net (loss)/income per ADS, Adjusted Earnings Before
Interests, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Gross revenue earned from accommodation reservation
and Net commissions earned from accommodation reservation. 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 (loss)/income 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; (8) losses (gains) from disposition of subsidiary; and (9) 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 (loss)/income,
(loss)/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) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| | |
2014 Q2 | | |
2015 Q1 | | |
2015 Q2 | |
| | |
RMB | | |
RMB | | |
RMB | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | |
| | |
| | |
| | |
| |
| Net income/(loss) attributable to eLong, Inc. | |
| 31,462 | | |
| (180,707 | ) | |
| (356,359 | ) |
| Net loss attributable to noncontrolling interests | |
| (1,091 | ) | |
| (2,786 | ) | |
| (3,681 | ) |
| Interest income | |
| (15,496 | ) | |
| (14,050 | ) | |
| (11,510 | ) |
| Government subsidy | |
| (8,776 | ) | |
| (1,339 | ) | |
| (9,425 | ) |
| Income tax expense/(benefit) | |
| (6,230 | ) | |
| 16,882 | | |
| 1,210 | |
| Depreciation | |
| 10,064 | | |
| 12,817 | | |
| 13,138 | |
| Amortization of intangible assets | |
| 1,467 | | |
| 5,339 | | |
| 5,299 | |
| Share-based compensation charges | |
| 33,633 | | |
| 27,338 | | |
| 182,771 | |
| Foreign exchange losses | |
| 2,544 | | |
| 1,364 | | |
| 988 | |
| Restructuring charges | |
| - | | |
| - | | |
| 3,556 | |
| Gain from disposition of subsidiary | |
| - | | |
| (71,762 | ) | |
| - | |
| Other | |
| (539 | ) | |
| 89 | | |
| 1,614 | |
| Adjusted EBITDA | |
| 47,038 | | |
| (206,815 | ) | |
| (172,399 | ) |
Gross revenue earned from accommodation
reservation is defined as accommodation reservation revenue plus (1) cash rebates to customers from the coupon program
in our agency accommodation business that were recorded as contra revenue; and (2) the portion of the loss from significant direct
discounts in our merchant accommodation business that was recorded as contra revenue. We believe gross revenue earned from accommodation
reservation is a useful operating and financial metric to assess our performance before the impact of our promotion activities,
including the coupon program and direct discounts.
Net commissions earned from accommodation
reservation are defined as accommodation reservation revenue minus the excess of gross-up revenues over our commissions
for accommodation reservation transactions, where we take inventory risk and accordingly recognize revenues on a gross basis. We
believe net commissions earned from accommodation reservation are a useful operating and financial metric to assess our performance
excluding the excess of revenues recognized on a gross basis over commissions earned from accommodation reservation, which allows
us to provide investors more information as to the financial impact of our room night transactions for which we take inventory
risk.
The presentation of gross revenue earned
from accommodation reservation and net commissions earned from accommodation reservation should not be construed as an indication
that eLong’s future results will be unaffected by other activities we consider to be outside the ordinary course of our business.
The use of gross revenue earned from accommodation reservation and net commissions earned from accommodation reservation has certain
limitations. The two terms are not defined under GAAP, and are not measures of revenues in accordance with GAAP.
Gross revenue earned from accommodation
reservation and net commissions earned from accommodation reservation 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 two
non-GAAP financial measures to GAAP below.
| |
eLong, Inc. |
| |
TABULAR RECONCILIATION FOR NON-GAAP MEASURE
Accommodation Reservation Revenue, Gross Revenue and Net
Commissions Earned From Accommodation Reservation |
| |
(IN THOUSANDS) |
| | |
| | |
| | |
| |
| | |
2014 Q2 | | |
2015 Q1 | | |
2015 Q2 | |
| | |
RMB | | |
RMB | | |
RMB | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | |
| | |
| | |
| | |
| |
| Gross revenue earned from accommodation reservation (Non-GAAP) | |
| 328,741 | | |
| 360,874 | | |
| 363,044 | |
| Cash rebates from the coupon program in our agency accommodation business | |
| (74,676 | ) | |
| (123,670 | ) | |
| (140,676 | ) |
| Portion of loss in our significantly-discounted merchant accommodation business | |
| - | | |
| (46,953 | ) | |
| (23,471 | ) |
| Accommodation reservation revenue (GAAP) | |
| 254,065 | | |
| 190,251 | | |
| 198,897 | |
| The excess of gross-up revenues over commissions for inventory risk taking accommodation transactions | |
| - | | |
| (72,401 | ) | |
| (46,598 | ) |
| Net commissions earned from accommodation reservation (Non-GAAP) | |
| 254,065 | | |
| 117,850 | | |
| 152,299 | |
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