Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission File Number 0-25581
PRICELINE.COM INCORPORATED
(Exact name of Registrant as specified in its charter)
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Delaware |
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06-1528493 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
800 Connecticut Avenue
Norwalk, Connecticut 06854
(address of principal executive offices)
(203) 299-8000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed, since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. YES ý. NO o.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act. YES ý. NO o.
Number of shares of Common Stock outstanding at November 11, 2003:
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Common Stock, par value $0.008 per share |
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38,290,883 |
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(Class) |
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(Number of Shares) |
priceline.com Incorporated
Form 10-Q
For the Quarter Ended September 30, 2003
2
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Condensed Financial Statements
priceline.com Incorporated
(unaudited)
(In thousands, except share data)
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September
30, |
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December
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
115,302 |
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$ |
67,182 |
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Restricted cash |
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20,750 |
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18,248 |
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Short-term investments |
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148,027 |
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64,154 |
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Accounts receivable, net of allowance for doubtful accounts of $1,111 and $1,262, respectively |
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18,809 |
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13,636 |
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Prepaid expenses and other current assets |
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6,737 |
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6,348 |
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Total current assets |
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309,625 |
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169,568 |
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Property and equipment, net |
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16,603 |
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21,413 |
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Intangible assets, net |
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4,207 |
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1,694 |
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Goodwill |
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9,534 |
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10,517 |
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Other assets |
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22,309 |
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7,970 |
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Total assets |
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$ |
362,278 |
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$ |
211,162 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
38,467 |
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$ |
35,375 |
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Accrued expenses |
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22,972 |
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27,889 |
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Other current liabilities |
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3,100 |
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2,063 |
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Total current liabilities |
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64,539 |
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65,327 |
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Long-term accrued expenses |
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545 |
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715 |
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Long-term debt |
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125,000 |
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— |
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Total liabilities |
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190,084 |
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66,042 |
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Commitments and Contingencies (See Notes) |
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Series B Mandatorily Redeemable Preferred Stock, $0.01 par value; 80,000 authorized shares; $1,000 liquidation value per share; 80,000 shares issued; 13,470 and 13,470 shares outstanding, respectively |
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13,470 |
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13,470 |
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Stockholders’ equity: |
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Common stock, $0.008 par value, authorized 1,000,000,000 shares, issued 40,096,959 and 39,258,196 shares, respectively |
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306 |
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1,884 |
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Treasury stock, 1,806,326 shares and 1,806,326 shares, respectively |
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(338,410 |
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(338,410 |
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Additional paid-in capital |
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2,055,540 |
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2,033,944 |
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Deferred compensation |
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(1,514 |
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— |
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Accumulated deficit |
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(1,557,672 |
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(1,565,869 |
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Accumulated other comprehensive income |
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474 |
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101 |
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Total stockholders’ equity |
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158,724 |
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131,650 |
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Total liabilities and stockholders’ equity |
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$ |
362,278 |
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$ |
211,162 |
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See Notes to Unaudited Consolidated Financial Statements.
3
priceline.com Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Merchant revenues |
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$ |
240,584 |
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$ |
237,961 |
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$ |
676,135 |
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$ |
800,298 |
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Agency revenues |
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1,895 |
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160 |
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4,376 |
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589 |
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Other revenues |
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962 |
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1,843 |
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2,983 |
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5,418 |
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Total revenues |
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243,441 |
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239,964 |
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683,494 |
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806,305 |
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Cost of merchant revenues |
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202,793 |
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201,949 |
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569,365 |
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677,432 |
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Cost of agency revenues |
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— |
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— |
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— |
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— |
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Cost of other revenues |
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— |
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274 |
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— |
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991 |
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Total costs of revenues |
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202,793 |
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202,223 |
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569,365 |
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678,423 |
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Gross profit |
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40,648 |
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37,741 |
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114,129 |
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127,882 |
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Operating expenses: |
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Advertising |
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10,284 |
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11,649 |
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32,156 |
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34,653 |
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Sales and marketing |
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7,242 |
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7,667 |
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21,895 |
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27,389 |
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Personnel |
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7,441 |
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8,397 |
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22,500 |
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24,552 |
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General and administrative, including option payroll taxes of $154 and $0 for the three months ended September 30, 2003 and 2002, respectively, and $256 and $120 for the nine months ended September 30, 2003 and 2002, respectively |
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3,212 |
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