Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE OF EXPEDIA, INC., DATED JULY 29, 2010 - Expedia Group, Inc. | dex991.htm |
| 8-K - FORM 8-K - Expedia Group, Inc. | d8k.htm |
 Q210 Company Overview
Q2 2010
Company Overview
Exhibit 99.2 |
 2
Q210 Company Overview
Forward-Looking Statements
This
presentation
contains
"forward-looking
statements"
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995,
including
statements
about
the
future
financial
and
operational
performance
of
the
Company.
These
statements
are
not
guarantees
of
future
performance.
These
forward-looking
statements
are
based
on
management’s
expectations
as
of
July
29,
2010,
and
assumptions
which
are
inherently
subject
to
uncertainties,
risks
and
changes
in
circumstances
that
are
difficult
to
predict.
The
use
of
words
such
as
“forecast,”
“opportunity,”
"intends,”
“anticipates”
and
“expects,"
among
others,
generally
identifies
forward-looking
statements.
However,
these
words
are
not
the
exclusive
means
of
identifying
such
statements.
In
addition,
any
statements
that
refer
to
expectations,
projections
or
other
characterizations
of
future
events
or
circumstances
are
forward-looking
statements
and
may
include
statements
relating
to
future
revenues,
expenses,
margins,
profitability,
net
income,
earnings
per
share
and
other
measures
of
results
of
operations
and
the
prospects
for
future
growth
of
Expedia,
Inc.’s
business.
Actual
results
and
the
timing
and
outcome
of
events
may
differ
materially
from
those
expressed
or
implied
in
the
forward-looking
statements
for
a
variety
of
reasons,
including,
among
others:
continued
or
prolonged
adverse
economic
conditions
leading
to
decreased
consumer
and
business
spending;
changes
in
our
relationships
and
contractual
agreements
with
travel
suppliers
or
global
distribution
system
partners;
adverse
changes
in
senior
management;
the
rate
of
growth
of
online
travel;
our
inability
to
recognize
the
benefits
of
our
investment
in
technologies;
changes
in
the
competitive
environment,
the
e-commerce
industry
and
broadband
access
and
our
ability
to
respond
to
such
changes;
declines
or
disruptions
in
the
travel
industry
(including
those
caused
by
adverse
weather,
bankruptcies,
health
risks,
war
and/or
terrorism);
the
rate
of
online
migration
in
the
various
geographies
and
markets
in
which
Expedia,
Inc.
operates,
including
Eastern
Europe
and
Asia;
fluctuations
in
foreign
exchange
rates;
risks
related
to
our
long
term
indebtedness,
including
the
ability
to
access
funds
as
and
when
needed;
changing
laws,
rules
and
regulations
and
legal
uncertainties
relating
to
our
business;
Expedia,
Inc.’s
ability
to
expand
successfully
in
international
markets;
possible
charges
resulting
from,
among
other
events,
platform
migration;
failure
to
realize
cost
efficiencies;
the
successful
completion
of
any
future
corporate
transactions
or
acquisitions;
the
integration
of
current
and
acquired
businesses;
and
other
risks
detailed
in
Expedia,
Inc.’s
public
filings
with
the
SEC,
including
Expedia,
Inc.’s
annual
report
on
Form
10-K
for
the
year
ended
December
31,
2009
and
subsequent
Forms
10-Q.
Except
as
required
by
law,
Expedia,
Inc.
undertakes
no
obligation
to
update
any
forward-looking
or
other
statements
in
this
presentation,
whether
as
a
result
of
new
information,
future
events
or
otherwise.
Reconciliations
of
non-GAAP
measures
included
in
this
presentation
to
the
most
comparable
GAAP
measures
are
included
in
Appendix
B. |
 3
Q210 Company Overview
Global Opportunity
Sizeable
markets
Higher growth
online
Penetration
tailwinds
OTA Share of
Online
Bookings
OTA share
stabilizing
CAGR
2006
2007
2008
2009 (E)
2010 (E)
‘06 –
‘10
Travel Market Size:
U.S.
251
264
271
241
236
-2%
Europe
320
337
334
300
299
-2%
APAC
238
244
215
202
212
-3%
3 Region Total
809
845
820
743
747
-2%
Online Bookings:
U.S.
123
138
137
135
139
3%
Europe
68
84
95
95
103
11%
APAC
21
26
31
36
44
20%
3 Region Online
212
248
263
266
286
8%
Europe & APAC
89
110
126
131
147
13%
Online Penetration:
U.S.
49%
52%
51%
56%
59%
Europe
21%
25%
28%
32%
34%
APAC
9%
11%
14%
18%
21%
3 Region Online Pen.
26%
29%
32%
36%
38%
Figures in $billions
Sources: U.S. Online Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S. Corporate
Travel Distribution 4th Edition (July 2009); European Online Travel Overview 5th Edition
(October 2009); European figures assume Euro/USD exchange rate in each period of $1.40; APAC
data - PhoCusWright Asia Pacific Online Travel Overview – Third Edition, August 2009
& EyeForTravel APAC Overview April 2007. APAC data excludes managed travel. |
 4
Q210 Company Overview
World’s Largest and Most Intelligent Travel Marketplace
Suppliers
Customers
Hotels
Airlines
Car rental companies
Cruise lines
Global distribution
system (GDS) partners
Advertisers
Leisure travelers
Corporate travelers
Travel service providers
(“white label”)
Offline retail travel
agents
Secure superior quality supply & maintain price competitiveness
Intelligently match supply & demand
Empower and inspire travelers to find and build the right trip
Enable suppliers to reach travelers in a unique & value-additive
way Aggressively expand our global presence & demand
footprint Achieve excellence in technology, people and processes to
make quality, consistency & efficiency the foundation of our
marketplace Travel
products
Travel info
Technology |
 5
Q210 Company Overview
Expedia -
the Travel Sector Leader
1
Sources:
comScore
MediaMetrix,
November,
2009
&
company
data;
2
See
Appendix B for reconciliation of non-GAAP to GAAP numbers. Adjusted
EBITDA is calculated as operating income plus depreciation,
restructuring charges, intangibles amortization, stock-based
compensation, any impairments, and certain legal reserves and
occupancy tax charges. Adj. EBITDA includes gains/(losses) from
revenue hedges. Global presence & portfolio of category leading
brands Premier
Brand
Portfolio
#1
Online
Travel
Agency
(OTA)
globally,
with
presence
in
19
countries
Leading
hotel
specialist
globally,
with
over
70
localized
sites
Leading
value-based
travel
provider
#1
online
travel
community,
operating
in
North
America,
Europe
&
APAC
Key Statistics ¹
•
Traffic (June 2010 unique visitors):
75mm
•
TTM 6.30.10 number of transactions:
62mm
TTM 6.30.10
•Gross bookings:
$ 24.3b
•Revenue:
$ 3.1b
•OIBA
2
:
$781mm
•Adjusted EBITDA
2
$891mm
•
$6.2b market cap (July 23, 2010)
•
Member of S&P 500 & NASDAQ 100
stock indices |
 6
Q210 Company Overview
Largest Worldwide Audience
Source: comScore
MediaMetrix, June 2010
1
Denotes Expedia’s
percentage difference over next largest competitor
U.S.
Worldwide
0
100
200
300
400
500
600
700
Min Spent Online
Page Views
+190%¹
+188%¹
+101%¹
+149%¹
+152%¹
+122%¹
Orbitz
Yahoo Travel
Priceline
Travelocity |
 7
Q210 Company Overview
Expedia’s Virtuous Cycle
Growth /
Scale
More travelers
Compelling supplier &
advertising channel
Better
supplier economics
Cash flow to invest in
improved traveler
experience
User-generated content
Scale drives opportunity to enhance supplier, traveler & advertiser value
propositions, reward stakeholders
More ad
revenue |
 8
Q210 Company Overview
Revenue by Product & Geography
Product Categories (TTM 6.30.10)
Geographic Split (TTM 6.30.10)
Hotel
63%
Revenue
Air
12%
* Hotel & Advertising –
75% of revenue base and
key revenue / profitability drivers
* Europe & other international markets benefit
from earlier stage online penetration
* Significant international growth anticipated,
with a target of 50+% of total revenue from
international
Domestic
62%
Revenue
International
38%
Advertising
& Media
12%
Car, Cruise & Other
13%
Business mix shifting to hotel & advertising, increasingly global
Source: Company financial reports; some numbers may not add due to
rounding. |
 9
Q210 Company Overview
Product Category -
Hotel
Business Overview
Merchant Model / Illustrative Transaction
Hotels
(Supplier)
Travelers
Revenues to Expedia:
•Spread between the discounted rate provided
by suppliers and sales price paid by travelers
•Service fees from travelers
Other:
•Cash received on booking, revenue recognized
at stay
•Revenue margin higher than the agency model
Reduced E.com
service
fees beginning Apr-09
•Merchant hotel
-Expedia
merchant
of
record
with
no
inventory
risk
-Expedia
receives
cash
upfront
from
travelers,
pays
hoteliers
several
weeks
later
-Some
control
over
pricing,
higher
margins
&
ability
to
package
with
other
products
-1
-
3
year
contracts
with
major
chain
lodging
properties
-Consultative
account
management
brings
industry
leading
intelligence
to
hoteliers
•
Agency
hotel
small
but
growing
in
importance
with
acquisition
of
Venere
&
launch
of
Expedia
Easy
Manage
Sample Expedia Revenue:
$350 night stay at luxury hotel
Cost to Traveler
Cost to Expedia
$350
$280
Revenue to Expedia
1
$70
1
Includes service fee and spread |
 10
Q210 Company Overview
Trended Worldwide Hotel Growth Statistics (y/y)
Source: Company financial reports . 2005 – 2007 data is for merchant hotel only; 2008 – 2010
data is for both agency and merchant hotel. |
 11
Q210 Company Overview
25.0
30.0
35.0
0.2
0.7
2.9
5.0
10.0
20.0
15.0
0
10
20
30
40
Travel supplier advertising on Expedia’s ww sites
Reviews with social networking
Search tool for fares
Travel blogs
European holiday reviews
Destination services, hotels & vacation rentals
Editorial info and deals
Cruise reviews & community
UGC seat maps and airline info
Guides and bargains
Vacation rental
Product Category -
Advertising & Media
Ad & Media Brand Portfolio
Business Overview
•Two primary businesses –
•TripAdvisor
Media Network
(leading global collection
of user-generated content sites)
•Expedia
Media
(monetizing
global
Expedia,
Hotels
&
Hotwire
sites
beyond
transactions)
•TTM revenue of $367mm, +24% y/y
TripAdvisor
Reviews and Opinions -
Robust Growth
TripAdvisor
TripAdvisor
Reviews & Opinions (mm)
Reviews & Opinions (mm)
•Offer advertisers targeted audiences
•CPC, CPM & subscription based ad models
•TripAdvisor
leverages industry-leading SEM & SEO
capabilities
•Robust user-generated content and selection draws in users
Growth in TTM Net Advertising Revenues¹
1
Trailing twelve months; growth due in part to acquisitions
Revenue Drivers
Sources:
Company
financial
reports,
TripAdvisor
press
releases. |
 12
Q210 Company Overview
Product Category -
Air
Business Overview
•
Air
revenue
=
12%
of
Expedia’s
worldwide
annual
revenue
(TTM)
-
~95%
of
airplane
tickets
sold
over
Expedia’s
online
properties
are
agency
transactions,
in
which
Expedia
acts
as
an
agent
on
behalf
of
a
supplier
and
collects
a
commission
-
Customer
pays
supplier
directly,
Expedia
collects
its
remuneration
after
travel
-
Lower
revenue
margin
business
vs.
hotel
transactions
•
OTAs
in
U.S.
eliminated
most
consumer
booking
fees
for
air
tickets
in
spring
2009,
resulting
in
reduced
revenue
per
ticket
while
taking
share
from
offline
&
supplier
direct
Agency Model / Illustrative Transaction
Airlines
(Supplier)
GDS
Travelers
Revenue to Expedia:
•Largely unit / volume driven and includes:
•Portion of GDS fee
•Commissions & incentives from carriers
•Booking fees (some sites)
Other:
•Supplier is merchant of record
•Expedia bears no inventory risk
•Revenue recognized at booking, cash received
within weeks
•Agency model is used in other product categories,
including hotel
•Multi-GDS strategy
No online booking
fees on E.com
air tickets |
 13
Q210 Company Overview
Trended Worldwide Air Growth Statistics (y/y)
Source: Company financial reports |
 14
Q210 Company Overview
12.6%
12.5%
12.5%
12.5%
12.6%
12.6%
12.4%
12.1%
11.6%
11.3%
13.6%
13.6%
13.7%
13.8%
14.0%
14.1%
13.9%
13.6%
13.1%
12.8%
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Stable Supplier Relationships & Economics
Trended Revenue Margin (TTM)
Stable supplier margins indicate healthy supplier relationships
Recent reductions driven by traveler fee cuts & rising air ticket prices
Supplier margins largely stable driven by:
Long-term agreements with airlines and GDS providers
Better hotel relationships through PSG investment
Growth in advertising business helping offset fee cut impact
Excluding ad & media revenue
Including ad & media revenue
Source: Company financial reports |
 15
Q210 Company Overview
Q210 Results
Figures in $mm unless otherwise noted
Unit Growth
•
Q210 worldwide room night growth of
12%
•
Q210 worldwide air ticket growth of
6%
* Excludes stock-based compensation. ** OIBA includes realized
gain/(loss) from revenue hedges *** Adjusted EBITDA is
calculated as operating income plus depreciation, restructuring charges, intangibles
amortization, stock-based compensation, any impairments and certain legal
reserves and occupancy tax charges. Adj. EBITDA includes
realized gains/(losses) from revenue hedges. ¹ See Appendix B for reconciliation
of non-GAAP to GAAP numbers.
Q210
Q209
y/y
Transactions (mm)
16.9
15.3
10%
Gross Bookings
$6,683
$5,623
19%
Revenue
834
770
8%
Cost of Revenue ¹
*
168
148
13%
Selling & Marketing ¹
*
294
269
9%
Tech & Content ¹
*
84
74
13%
General & Administrative ¹
*
71
61
18%
Total Costs and Expenses ¹
*
617
552
12%
OIBA ¹
**
219
212
3%
OIBA Margin ¹
26%
28%
(128bps)
Adjusted EBITDA ¹
***
250
237
5%
Adj. EBITDA Margin ¹
30%
31%
(86bps)
Free Cash Flow ¹
270
324
(17%)
Source: Company financial reports |
 16
Q210 Company Overview
Trended Free Cash Flow (TTM)
$millions
‘08 cash flows down due
to taxes, slowing
merchant hotel & one-
time cap ex
Over $1.5B in free cash flow generated in past 3 years
‘09 cash flows improved
due to higher earnings,
merchant hotel recovery
& normalized cap ex
Source: Company financial reports |
 17
Q210 Company Overview
Efficiently Managing Dilution
11% reduction in share base since Q107
millions of adjusted diluted shares
Source: Company financial reports
Q2 / Q3 ‘06 repurchased 20mm
shares for $288mm
Q107 repurchased 30mm
shares for $660mm
Q307 repurchased 25mm
shares for $725mm
Q110 repurchased 8.4mm
shares for $188mm |
 18
Q210 Company Overview
Capitalization
Source: Company financial reports. Some numbers may not add due to
rounding. Modest leverage;
minimal net debt
2 debt issues with long-
term maturities
(2018 Notes have 2013
investor put)
1 Does not include restricted cash, short-term investments and corporate bond investments that are
included in long-term assets. 2 Total size of revolving credit facility closed in
February 2010 is $750 million; available capacity reduced by $29mm in outstanding letters of credit as of June 30, 2010.
3 Based on 284mm outstanding shares & July 23rd, 2010 closing share price of $21.96.
4 Adjusted EBITDA is calculated as operating income plus depreciation, intangibles expense,
restructuring charges, stock-based compensation, any impairments, certain legal reserves
and occupancy tax charges. Adjusted EBITDA includes any realized gains/(losses) from revenue hedges. See Appendix B for reconciliation of non-GAAP to GAAP numbers
6/30/10
Cash and Cash Equivalents
1
$796
Revolving Credit Facility
2
--
7.456% Notes
due 2018
500
8.500%
Notes
due 2016
395
Total Debt
$895
Net Debt
99
Market Value of Equity
3
$6,247
Total Capitalization
$6,346
Adjusted EBITDA
TTM
4
$891
Total Debt / Adj. EBITDA
4
1.0
Net Debt / Adj. EBITDA
4
0.1 |
 19
Q210 Company Overview
12.31.05
12.31.06
12.31.07
12.31.08
12.31.09
TTM
6.30.10
Leverage Measures
Total Debt / TTM Adjusted EBITDA
1
0.3
0.8
1.5
2.0
1.0
1.0
Net Debt / TTM Adjusted EBITDA
1
N/A
N/A
0.6
1.1
0.3
0.1
Coverage Measures
TTM Adj. EBITDA / TTM Interest
Expense
1
N/A
37.5
13.8
10.8
10.3
10.7
TTM Free Cash Flow / TTM Int.
Expense
1
N/A
30.4
11.8
5.0
6.9
7.7
Trended Credit Metrics
Demonstrated strong credit metrics, consistent with investment grade rating
1
See Appendix B for reconciliation of non-GAAP to GAAP numbers
Source: Company financial reports |
 20
Q210 Company Overview
Rating Agency Snapshot
S&P (Analyst: Andy Liu)
Rating Raised To ‘BBB-’
From ‘BB’; Outlook Stable
Oct 14, 2009 Note:
“The
ratings
upgrade
is
based
on
Expedia's
revised
financial
policy,
solid
operating
performance,
and
strong
financial
measures.“
“BBB-
rating
reflects
the
company's
leading
market
share,
strong
brands,
good
discretionary
cash
flow,
and
solid
credit
measures.
These
positive
factors
offset
the
intense
competitiveness
of
the
online
travel
agency
market,
Expedia's
concentration
of
earnings
from
this
market,
varying
supplier
dynamics,
and
some
cyclicality.”
Moody’s (Analyst: Stephen Sohn)
Rating Raised from Ba2 to Ba1 / Stable / SGL-1
Oct 30, 2009 Credit Opinion:
“The
upgrade
is
based
on
Expedia’s
solid
operating
performance
amidst
the
global
recession
and
management’s
commitment
to
more
conservative
financial
policies.”
“Management
has
publicly
committed
to
financial
policies
commensurate
with
an
investment
grade
rated
company,
specifically
2
to
3
times
(gross
debt
to
EBITDA).”
“We
anticipate
that
modest
acquisition
and
share
buyback
activity
will
be
funded
through
the
company’s
free
cash
flow
generation
and
that
balance
sheet
liquidity
will
remain
robust
through
2010.
In
addition,
we
expect
leverage…to
remain
consistent
with
management
targets.”
Fitch Rates Expedia, Inc.'s 'BBB-'; Outlook Stable
Issuer Default Rating (IDR) 'BBB-‘; Senior unsecured notes 'BBB-';
Senior unsecured bank credit facility 'BBB-’; Rating Outlook is
Stable.
“Fitch
expects
Expedia
to
exhibit
modest
revenue
growth
and
stable
EBITDA
margins
in
2010.
Results
should
benefit
from
a
stabilization
of
industry
travel
trends
and
be
positively
impacted
by
continued
share
gains
at
Expedia
as
consumers
increasingly
utilize
online
travel
agents
(OTAs).
Additionally,
while
EBITDA
margin
pressure
continues
to
exist
in
the
core
hotel
and
airline
travel
booking
business,
Expedia's
advertising
revenue
stream,
the
growth
of
which
has
outpaced
overall
corporate
revenue
growth,
carries
substantially
higher
margins
and
should
add
stability
to
current
profitability
metrics.”
Solid execution & adequate liquidity in a challenging environment
|
 21
Q210 Company Overview
Summary
•
Attractive macro tailwind as travel industry shifts online
•
World’s #1 online provider of travel-related services
Leading traffic, supply, scale, bookings, revenue & cash flows
Strong and complementary portfolio of brands and products
Critical partner to airlines, hotels and other travel suppliers
•
Countercyclical elements
Low exposure to airline industry (12% of revenue base -
TTM)
Promotional hotel supply improves in downturn
Diversified brands, business models and geographic reach
Roughly 60% variable / 40% fixed cost base
•
Compelling platforms for travel suppliers, travelers & advertisers
•
Strong business model, execution & credit metrics
Substantial free cash flow
1
(FY09: $584mm; TTM $642)
Modest leverage (1.0x)
Strong interest coverage (10.7x)
High operating margins and modest ongoing cap-ex (~5% revenue)
•
Proven management
1
See
Appendix B for reconciliation of non-GAAP to GAAP numbers
|
 22
Q210 Company Overview
Appendix A |
 23
Q210 Company Overview
Business Model –
Income Statement (FY 2009)
(Figures in $millions)
Gross bookings
$21,811
Revenue
2,955
Cost of revenue *
605
Selling and marketing *
1,015
General and administrative *
259
Technology and content *
304
“OIBA”
* (incl. $11mm hedge loss)
762
OIBA margin*
26%
Stock-based compensation
62
Amortization of intangibles
38
Occ
tax, legal reserves &
restructuring
102
Operating income (GAAP)
571
•
Customer operations
•
Credit card & fraud expense
•
Data center & other costs
Consists
of
direct
(74%)
advertising
expenses
(search
engine
marketing
&
other
online
advertising,
TV,
etc.)
and
indirect,
personnel-related
costs
(26%),
including
our
supplier
relationship
function (PSG).
Amortization of M&A activity
Annual employee awards granted each Q1 ;
company switched to options from
RSUs
in
2009.
(1) Personnel–related costs, including
executive leadership, finance, legal, tax and
HR functions. (2) Fees for professional
services typically related to legal, tax and
accounting engagements.
Customer books travel product or service;
total retail value (incl
taxes and fees)
constitutes “Gross Bookings.”
Expedia’s
portion of the gross booking gets
recorded as revenue (inc. commissions,
fees, etc.). Also includes advertising &
media revenue. Revenue = 13.5% of ‘09
bookings.
Principally relates to payroll and
related expenses, and depreciation
and amortization of technology assets,
including hardware and purchased
and internally developed software.
Source:
Company financial reports
* Excludes stock-based compensation. See Appendix B for reconciliation of
non-GAAP with GAAP numbers. (excl. $11mm hedge loss)
|
 24
Q210 Company Overview
Growth
2005
2006
2007
2008
2009
2006
2007
2008
2009
Gross Bookings
$15,336
$16,882
$19,632
$21,269
$21,811
10%
16%
8%
3%
Revenue
2,119
2,238
2,665
2,937
2,955
6%
19%
10%
1%
Cost of Goods Sold
& Operating
Expenses *
1,492
1,639
1,996
2,239
2,183
10%
22%
12%
(3%)
OIBA***
627
599
670
698
762
(5%)
12%
4%
9%
OIBA Margin***
30%
27%
25%
24%
26%
(283bps)
(165bps)
(136bps)
201bps
Adj. EBITDA**
678
648
729
775
864
(4%)
13%
6%
12%
EBITDA Margin***
32%
29%
27%
26%
29%
(303bps)
(160bps)
(98bps)
287bps
Free Cash Flow
807
525
625
361
584
(35%)
19%
(42%)
62%
Trended Historical Results
•
Positive top-line growth
•
Despite difficult environment in 2009 were able to generate substantial OIBA
margins
•
$3.4B in cumulative OIBA & $2.9B in cumulative free cash flow
(Figures in $millions)
* Excludes stock-based compensation. See reconciliation of non-GAAP measure in appendix
B. **Adjusted EBITDA is calculated as operating income plus depreciation, intangibles
expense, restructuring charges, stock-based compensation, any impairments and certain legal
reserves and occupancy tax charges. Adjusted EBITDA includes any gains/(losses) from revenue hedges.
See Appendix B for reconciliation of non-GAAP to GAAP numbers *** See Appendix B for
reconciliation of non-GAAP numbers. |
 25
Q210 Company Overview
Appendix B |
 26
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
(74,211)
(74,211)
-
-
6,553
Occupancy tax assessments and legal reserves
(6,098)
(14,816)
-
-
(19,352)
Restructuring charges
(figures in $000s)
12 Months
Ended
6 Months
Ended
3 Months
Ended
6 Months
Ended
3 Months
Ended
June 30,
2010
June 30,
2010
June 30,
2010
June 30,
2009
June 30,
2009
OIBA
$781,345
$362,016
$219,472
$342,203
$ 212,416
Amortization of intangible assets
(36,682)
(17,372)
(8,344)
(18,371)
(9,302)
Stock-based compensation
(63,056)
(33,543)
(14,651)
(32,148)
(13,576)
Impairment of goodwill
-
-
-
-
-
Impairment of intangible and other long-lived
assets
-
-
-
-
-
Realized loss (gain) on revenue hedges
881
(5,237)
(2,787)
4,932
5,413
Operating income
669,689
305,864
193,690
207,589
114,642
Operating income margin
22%
20%
23%
15%
15%
Interest income (expense), net
(79,261)
(39,596)
(18,988)
(38,362)
(19,388)
Other, net
(7,959)
1,385
817
(26,020)
(19,073)
Provision for income taxes
(184,491)
(91,701)
(60,166)
(61,610)
(34,338)
Net income attributable to noncontrolling
interests
(5,081)
(2,295)
(1,091)
(1,311)
(941)
Net income attributable to Expedia, Inc.
$ 392,897
$ 173,657
$ 114,262
$ 80,286
$ 40,902 |
 27
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
(figures in $000s)
Year Ended
Dec. 31,
2005
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
OIBA
$ 627,441
$ 599,018
$ 669,487
$ 697,774
$ 761,532
OIBA margin
30%
27%
25%
24%
26%
Amortization of intangible assets
(126,067)
(110,766)
(77,569)
(69,436)
(37,681)
Amortization of non-cash distribution and
marketing
(12,597)
(9,638)
-
-
-
Stock-based compensation
(91,725)
(80,285)
(62,849)
(61,291)
(61,661)
Restructuring charges
-
-
-
-
(34,168)
Occupancy tax assessments and legal reserves
-
-
-
-
(67,658)
Impairment of goodwill
-
-
-
(2,762,100)
-
Impairment of intangible & other long-lived assets
-
(47,000)
-
(233,900)
-
Realized loss on revenue hedges
-
-
-
-
11,050
Operating income / (loss)
397,052
351,329
529,069
(2,428,953)
571,414
Operating income margin
19%
16%
20%
n/a
19%
Interest income (expense), net
48,673
14,799
(13,478)
(41,573)
(78,027)
Other, net
(8,428)
18,770
(18,607)
(44,178)
(35,364)
Write-off of long-term investment
(23,426)
Provision for income taxes
(185,977)
(139,451)
(203,114)
(5,966)
(154,400)
Net (income) loss attributable to noncontrolling
interests
836
(513)
1,994
2,907
(4,097)
Net income / (loss) attributable to Expedia, Inc.
$ 228,730
$ 244,934
$ 295,864
$(2,517,763)
$ 299,526
Source:
Company financial reports |
 28
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Costs & Expenses
(figures in $000s)
Year Ended
Dec. 31, 2005
Year Ended
Dec. 31, 2006
Year Ended
Dec. 31, 2007
Year Ended
Dec. 31, 2008
Year Ended
Dec. 31, 2009
Total costs and expenses*
$ 1,583,739
$ 1,718,853
$ 2,058,694
$ 2,300,530
$ 2,244,505
Less: stock-based compensation
(91,725)
(80,285)
(62,849)
(61,291)
(61,661)
Costs and expenses excluding stock-based
compensation
1,492,014
1,638,568
1,995,845
2,239,239
2,182,844
* Includes cost of revenue, selling and marketing, general and administrative and
technology and content expenses. Source:
Company financial reports
(figures in $000s)
Quarter
Ended June
30, 2009
Quarter
Ended June
30, 2010
Total costs and expenses*
$ 565,515
$ 631,926
Less: stock-based compensation
(13,576)
(14,651)
Costs and expenses excluding stock-based
compensation
551,939
617,275 |
 29
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
(figures in $000s)
Year Ended
Dec. 31,
2005
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
Adjusted EBITDA
677,886
647,797
729,013
774,574
864,314
Adjusted EBITDA margin
32%
29%
27%
26%
29%
Depreciation
(50,445)
(48,779)
(59,526)
(76,800)
(102,782)
OIBA
627,441
599,018
669,487
697,774
761,532
Source:
Company financial reports
(figures in $000s)
Qtr Ended
June 30,
2010
Qtr Ended
June 30,
2009
TTM
June 30,
2010
Adjusted EBITDA
249,787
237,209
890,627
Adjusted EBITDA margin
30%
31%
29%
Depreciation
(30,315)
(24,793)
(109,282)
OIBA
219,472
212,416
781,345 |
 30
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Costs & Expenses
12 Months
Ended
12 Months
Ended
3 Months
Ended
3 Months
Ended
(figures in $000s)
12.31.08
12.31.09
6.30.09
6.30.10
Cost of revenue
638,709
607,251
148,762
168,571
Less: stock-based compensation
(2,252)
(2,285)
(514)
(487)
Cost of revenue excluding stock-based
compensation
636,457
604,966
148,248
168,084
Selling and marketing
1,105,337
1,027,062
271,492
296,830
Less: stock-based compensation
(10,198)
(12,440)
(2,780)
(3,118)
Selling and marketing excluding stock-
based compensation
1,095,139
1,014,622
268,712
293,712
Technology and content
287,763
319,708
77,881
87,420
Less: stock-based compensation
(15,111)
(15,700)
(3,412)
(3,249)
Technology and content excluding
stock-based compensation
272,652
304,008
74,469
84,171
General and administrative
268,721
290,484
67,380
79,105
Less: stock-based compensation
(33,730)
(31,236)
(6,870)
(7,797)
General and administrative excluding
stock-based compensation
234,991
259,248
60,510
71,308
Source:
Company financial reports |
 31
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
(figures in $000s)
6 months
ended
June 30, 2010
3 months
ended
June 30, 2010
6 months
ended
June 30, 2009
3 months
ended
June 30, 2009
Net cash provided by operating activities
933,333
313,806
844,550
342,546
Less: capital expenditures
(73,128)
(43,453)
(42,052)
(18,666)
Free cash flow
860,205
270,353
802,498
323,880 |
 32
Q210 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
TTM = Trailing Twelve Month periods ended
(figures in $000s)
TTM 12.05
TTM 12.06
TTM 3.07
TTM 6.07
TTM 9.07
TTM 12.07
TTM 3.08
TTM 6.08
Net cash provided by operating
activities
859,187
617,440
703,569
831,140
859,228
712,069
737,792
660,510
Less: capital expenditures
(52,315)
(92,631)
(97,925)
(97,576)
(82,671)
(86,658)
(101,514)
(118,417)
Free cash flow
806,872
524,809
605,644
733,564
776,557
625,411
636,278
542,093
TTM 9.08
TTM 12.08
TTM 3.09
TTM 6.09
TTM 9.09
TTM 12.09
TTM 3.10
TTM 6.10
Net cash provided by operating
activities
514,242
520,688
458,913
494,184
573,491
676,004
793,527
764,786
Less: capital expenditures
(148,022)
(159,827)
(150,025)
(131,146)
(103,775)
(92,017)
(98,306)
(123,094)
Free cash flow
366,220
360,861
308,888
363,038
469,715
583,987
695,221
641,692
Source:
Company financial reports. Numbers may not add due to rounding.
|