Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Expedia Group, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE OF EXPEDIA, INC., DATED FEBRUARY 10, 2011 - Expedia Group, Inc. | dex991.htm |
 Q4
2010 Company Overview
Q410 Company Overview
Exhibit 99.2 |
 2
Q410 Company Overview
Forward-Looking Statements
This
presentation
contains
"forward-looking
statements"
within
the
meaning
of
the
Private
Securities
Litigation
Reform Act of 1995, including 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.
These statements are not guarantees of future performance. These
forward-looking statements are based on management’s expectations as of February
10, 2011, and assumptions which are inherently subject to uncertainties, risks and
changes in circumstances that are difficult to predict.
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, 2010.
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
Q410 Company Overview
Global Opportunity
Sizeable
markets
Higher growth
online
Penetration
tailwinds
OTA Share of
Online
Bookings
OTA share
stabilizing
CAGR
2006
2007
2008
2009
2010 (E)
‘06 –
‘10
Travel Market Size:
U.S.
251
264
274
233
255
Flat
Europe
316
333
333
298
304
-1%
APAC
238
244
215
202
212
-3%
3 Region Total
805
841
822
732
772
-1%
Online Bookings:
U.S.
116
133
143
132
139
4%
Europe
66
82
101
102
113
11%
APAC
21
26
31
36
44
16%
3 Region Online
203
241
275
269
296
8%
Europe & APAC
87
108
132
138
157
12%
Online Penetration:
U.S.
46%
50%
52%
57%
54%
Europe
21%
25%
30%
34%
37%
APAC
9%
11%
14%
18%
21%
3 Region Online Pen.
25%
29%
33%
37%
38%
Figures in $billions
2006
2007
2008
2009
2010 (E)
35%
37%
39%
41%
43%
45%
44%
42%
40%
38%
36%
Sources:
U.S.
Online
Travel
Overview
10
th
Edition
(November
2010);
U.S.
Online
Travel
Overview
8
th
Edition
Update:
2009
–
2010
(April
2009);
U.S.
Corporate
Travel
Distribution
4
th
Edition (July 2009);
European
Online
Travel
Overview
6
th
Edition
(November
2010);
European
Online
Travel
Overview
5
th
Edition (October 2009); European figures assume Euro/USD exchange rate in each period of $1.38;
APAC
data
-
PhoCusWright
Asia
Pacific
Online
Travel
Overview
–
Third
Edition,
August
2009
&
EyeForTravel
APAC Overview April 2007. APAC data excludes managed travel. |
 4
Q410 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
Q410 Company Overview
Expedia -
the Travel Sector Leader
1
Sources: comScore
MediaMetrix, December 2010 & 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 realized gains/(losses)
from revenue hedges. Global presence & portfolio of category leading
brands Premier
Brand
Portfolio
#1
Online
Travel
Agency
(OTA)
globally,
with
presence
in 20 countries
Leading
hotel
specialist
globally,
with
over
75
localized sites
Leading value-based travel provider
#1
online
travel
community,
operating
in
North
America, Europe & APAC
Key Statistics
•
Traffic (December 2010 unique visitors):
61mm
•
FY 2010 number of transactions:
66mm
12.31.10
•Gross bookings:
$ 26.0b
•Revenue:
$ 3.3b
•OIBA
2
:
$831mm
•Adjusted EBITDA
2
$949mm
•
$6.8b market cap (January 28, 2011)
•
Member of S&P 500 & NASDAQ 100
stock indices
1 |
 Largest Worldwide
Audience Source: comScore
MediaMetrix, December 2010
1
Denotes Expedia’s
percentage difference over next largest competitor
U.S.
Worldwide
+152%
1
+150%
1
+126%
1
+87%
1
+171%
1
+152%
1
Orbitz
Yahoo Travel
Priceline
Travelocity
UV's
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
Min Spent Online
Page Views
0
5
10
15
20
25
30
UV's
0
100
200
300
400
500
600
700
Min Spent Online
Page Views
0
10
20
30
40
50
60
70
80
6
Q410 Company Overview |
 7
Q410 Company Overview
Expedia’s
Virtuous Cycle
Growth/
Scale
Compelling
supplier &
advertising
channel
Better
supplier
economics
More
travelers
More ad
revenue
Improved
traveler
experience
User-
generated
content
Cash flow
to invest in
7
Q410 Company Overview
Scale drives opportunity to enhance supplier, traveler &
advertiser value propositions, reward stakeholders |
 8
Q410 Company Overview
Revenue by Product & Geography
* 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
Business mix shifting to hotel & advertising, increasingly global
Source: Company financial reports; some numbers may not add due to
rounding. Hotel
63%
Revenue
Air
12%
Domestic
62%
Revenue
International
38%
Advertising
& Media
13%
Car, Cruise & Other
13%
Product Categories (2010)
Geographic Split (2010) |
 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
Sample Expedia Revenue:
$350 night stay at luxury hotel
Cost to Traveler
Cost to Expedia
$350
$280
Revenue
to
Expedia
1
$70
•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
1
Includes service fee and spread
9
Q410 Company Overview
Reduced E.com
service
fees beginning Apr-09 |
 Trended Worldwide Hotel Growth Statistics (y/y)
-30%
-20%
-10%
0%
10%
20%
30%
Hotel Revenue
ADRs
Room Nights Stayed
10
Q410 Company Overview
Source: Company financial reports . 2005 – 2007 data is for merchant
hotel only; 2008 – 2010 data is for both agency and merchant hotel. |
 11
Q410 Company Overview
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)
•2010 revenue of $423mm, +36% y/y
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
1
Trailing twelve months; growth due in part to acquisitions
Revenue Drivers
Sources: Company reports
25.0
30.0
40.0
0.2
0.7
2.9
5.0
10.0
20.0
15.0
0
10
20
30
40
50
Growth in TTM Net Advertising Revenues¹
TripAdvisor Reviews and Opinions - Robust Growth
|
 12
Q410 Company Overview
Product Category -
Air
Business Overview
•
Air revenue = 12% of Expedia’s
worldwide annual revenue
-
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)
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
GDS
No online booking
fees on E.com air tickets |
 Source: Company financial reports
Trended Worldwide Air Growth Statistics (y/y)
-35%
-25%
-15%
-5%
5%
15%
25%
35%
Air Revenue
Airfares
Rev. Per Ticket
Ticket Growth
13
Q410 Company Overview |
 14
Q410 Company Overview
12.5%
12.6%
12.6%
12.4%
12.1%
11.6%
11.3%
11.2%
11.3%
13.8%
14.0%
14.1%
13.9%
13.6%
13.1%
12.8%
12.8%
12.9%
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
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
Q410 Company Overview
2010 Results
Figures in $mm unless otherwise noted
Healthy Unit Growth
Q410 worldwide room night growth of 15%
Q410 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.
Q410
Q409
y/y
2010
2009
y/y
Transactions (mm)
14.8
13.1
13%
65.6
57.8
14%
Gross Bookings
$5,755
$5,049
14%
$25,962
$21,811
19%
Revenue
808
698
16%
3,348
2,955
13%
Cost of Revenue
176
145
21%
690
605
14%
Selling & Marketing
279
232
20%
1,190
1,015
17%
Tech & Content
91
82
12%
348
304
15%
General & Administrative
83
74
12%
285
259
10%
Total Costs and Expenses
629
533
18%
2,514
2,183
15%
OIBA
175
163
7%
831
762
9%
OIBA Margin
22%
23%
(170bps)
25%
26%
(96bps)
Adjusted EBITDA
207
190
9%
949
864
10%
Adj. EBITDA Margin
26%
27%
(170bps)
28%
29%
(90bps)
Free Cash Flow
(202)
(173)
(17%)
622
584
7%
Source: Company financial reports
1 *
1 *
1 *
1 *
1 *
1 **
1 ***
1
1
1 |
 Trended Free Cash Flow (TTM)
$millions
‘08 cash flows down due
to taxes, slowing
merchant hotel & one-
time cap ex
Approximately $1.6B in free cash flow* generated in past 3 years
‘09 cash flows improved
due to higher earnings,
merchant hotel recovery
& normalized cap ex
‘10 cash flows improved
due to higher earnings,
lower occupancy tax
assessment payments
and lower cash tax
payments
-
100
200
300
400
500
600
700
800
900
Source: Company financial reports
*
Free cash flow is a non-GAAP measure calculated by adding capital
expenditures to net cash provided by or used in operating activities. See Appendix B for reconciliation of non-GAAP to
GAAP numbers
16
Q410 Company Overview |
 Efficiently Managing Dilution
13% reduction in share base since Q107
millions of adjusted diluted shares
Source: Company financial reports
2007 repurchased 55mm
shares for $1.4b
2010 repurchased 20.6mm
shares for $489mm
17
Q410 Company Overview
260
270
280
290
300
310
320
330
340 |
 18
Q410 Company Overview
Capitalization
Source: Company financial reports. Some numbers may not add due to
rounding. Modest leverage;
minimal net debt
3 debt issues with long-
term maturities
(2018 Notes have 2013
investor put)
12/31/10
Cash and Cash Equivalents¹
$714
Revolving Credit Facility²
--
5.950% Notes due 2020
750
7.456% Notes
due 2018
500
8.500%
Notes
due 2016
395
Total Debt
$1,645
Net Debt
931
Market Value of Equity³
$6,846
Total Capitalization
$7,777
Adjusted EBITDA
4
$949
1.7
1.0
Total
Debt
/
Adj.
EBITDA
4
Net
Debt
/
Adj.
EBITDA
4
Does not include restricted cash, short-term investments and corporate
bond investments that are included in long-term assets.
Total size of revolving credit facility closed in February 2010 is $750
million; available capacity reduced by $27mm in outstanding letters of credit as of December 31, 2010.
Based on 274mm outstanding shares & January 28, 2011 closing share
price of $24.98. 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.
1
2
3
4 |
 19
Q410 Company Overview
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
12.31.06
12.31.07
12.31.08
12.31.09
12.31.10
Leverage Measures
Total
Debt
/
TTM
Adjusted
EBITDA
1
0.8
1.5
2.0
1.0
1.7
Net
Debt
/
TTM
Adjusted
EBITDA
1
N/A
0.6
1.1
0.3
1.0
Coverage Measures
TTM Adj. EBITDA / TTM Interest
Expense
1
37.5
13.8
10.8
10.3
9.4
TTM Free Cash Flow / TTM Int.
Expense
1
30.4
11.8
5.0
6.9
6.1 |
 20
Q410 Company Overview
Rating Agency Snapshot
S&P (Analyst: Andy Liu)
Rating maintained at ‘BBB-’; Outlook Stable
Moody’s (Analyst: Stephen Sohn)
Rating Affirmed at Ba1 / Outlook Positive
November 5, 2010 and January 31, 2011 Credit Opinions:
“The
company’s
investment-grade
attributes
include
its
leading
position
in
the
consumer
online
travel
agency
market,
globally
recognized
brand,
the
scalability
of
its
distribution
and
processing
network,
and
very
strong
credit
profile
(e.g., low leverage, high profitability, and strong cash flow
generation).” “For 2011 at least, AA’s retreat from the GDS
model would have no material effect on the credit metrics of the GDS
providers
or
the
travel
companies.
These
companies
draw
only
a
small
percentage
of
their
annual
revenues
from sales of AA tickets.”
“Air
revenues
comprise
only
12%
of
Expedia’s
total
revenue
stream,
compared
to
about
36%
for
Orbitz.
Since
no
single
carrier
represents
more
than
15%
of
Expedia’s
air
revenues,
AA
tickets
account
for
no
more
than
2%
of
Expedia’s
total revenues.”
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. Solid execution & adequate liquidity
|
 21
Q410 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
—
Important partner to airlines, hotels and other travel suppliers
—
Diversified brands, business models and geographic reach
•
Compelling platforms for travel suppliers, travelers & advertisers
•
Strong business model, execution & credit metrics
—
Substantial free cash flow
1
(FY10: $622mm)
—
Modest leverage (1.7x)
—
Strong interest coverage (9.4x)
—
High operating margins
—
Roughly 55% variable / 45% fixed cost base
•
Proven management
1
See
Appendix B for reconciliation of non-GAAP to GAAP numbers.
|
 22
Q410 Company Overview
Appendix A |
 23
Q410 Company Overview
Business Model –
Income Statement (FY 2010)
Source: Company financial reports
1
Excludes stock-based compensation. See Appendix B for reconciliation of
non-GAAP to GAAP numbers. $ in millions
Gross bookings
$25,962
Revenue
3,348
Cost
of
revenue
1
690
Selling
and
marketing
1
1,190
General
and
administrative
1
285
Technology
and
content
1
348
“OIBA”
1
831
OIBA margin
1
25%
Stock-based compensation
60
Amortization of intangibles
37
Occupancy tax, legal reserves & restructuring
6
Operating income (GAAP)
732
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 = 12.9% of ‘10
bookings.
(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.
Annual employee awards granted
each Q1; company switched to
options from RSUs
in 2009.
Amortization of M&A activity
•
Customer operations
•
Credit card & fraud expense
•
Data center & other costs
Consists of direct (73%)
advertising expenses (search
engine marketing & other online
advertising, TV, etc.) and
indirect, personnel-related costs
(27%), including our supplier
relationship function (PSG).
Principally relates to payroll and
related expenses, hardware &
software, licensing &
maintenance and software
development cost amortization. |
 24
Q410 Company Overview
Growth
2006
2007
2008
2009
2010
2007
2008
2009
2010
Gross Bookings
$16,882
$19,632
$21,269
$21,811
$25,962
16%
8%
3%
19%
Revenue
2,238
2,665
2,937
2,955
3,348
19%
10%
1%
13%
Cost & Expenses *
1,639
1,996
2,239
2,183
2,514
22%
12%
(3%)
15%
OIBA***
599
670
698
762
831
12%
4%
9%
9%
OIBA Margin***
27%
25%
24%
26%
25%
(165bps)
(136bps)
201bps
(96bps)
Adj. EBITDA**
648
729
775
864
949
13%
6%
12%
10%
EBITDA Margin***
29%
27%
26%
29%
28%
(160bps)
(98bps)
287bps
(90bps)
Free Cash Flow***
525
625
361
584
622
19%
(42%)
62%
7%
Trended Historical Results
•
•
Investing in business to drive accelerated transaction growth.
•
$3.6B in cumulative OIBA & $2.7B in cumulative free cash flow
(Figures in $millions)
Positive top-line growth
*
Excludes stock-based compensation. See reconciliation of non-GAAP to GAAP numbers 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 to GAAP numbers. |
 25
Q410 Company Overview
Appendix B |
 26
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
(figures in $000s)
3 Months
Ended
3 Months
Ended
Dec 31,
2009
Dec 31,
2010
OIBA
$ 162,903
$ 175,055
Amortization of intangible assets
(9,722)
(11,625)
Stock-based compensation
(14,994)
(13,126)
Restructuring charges
(5,571)
-
Occupancy tax assessments and legal
reserves
6,553
(5,542) Realized loss on revenue hedges
1,682
4,485
Operating income
140,851
149,247
Operating income margin
20%
18%
Interest expense, net
(19,638)
(29,996)
Other, net
(4,595)
(4,944)
Provision for income taxes
(12,405)
(42,723)
Net income attributable to noncontrolling
interests
(1,987)
(291)
Net income attributable to Expedia, Inc.
$ 102,226
$ 71,293
|
 27
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
(figures in $000s)
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
Year Ended
Dec. 31,
2010
OIBA
$ 599,018
$ 669,487
$ 697,774
$ 761,532
$ 830,721
OIBA margin
27%
25%
24%
26%
25%
Amortization of intangible assets
(110,766)
(77,569)
(69,436)
(37,681)
(37,123)
Amortization of non-cash distribution and
marketing
(9,638)
-
-
-
-
Stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Restructuring charges
-
-
-
(34,168)
-
Occupancy tax assessments and legal reserves
-
-
-
(67,658)
(5,542)
Impairment of goodwill
-
-
(2,762,100)
-
-
Impairment of intangible & other long-lived assets
(47,000)
-
(233,900)
-
-
Realized loss on revenue hedges
-
-
-
11,050
3,549
Operating income / (loss)
351,329
529,069
(2,428,953)
571,414
731,915
Operating income margin
16%
20%
n/a
19%
22%
Interest income (expense), net
14,799
(13,478)
(41,573)
(78,027)
(94,131)
Other, net
18,770
(18,607)
(44,178)
(35,364)
(17,216)
Provision for income taxes
(139,451)
(203,114)
(5,966)
(154,400)
(195,008) Net (income) loss
attributable to noncontrolling interests
(513)
1,994
2,907
(4,097)
(4,060) Net
income / (loss) attributable to Expedia, Inc. $ 244,934
$ 295,864
$(2,517,763)
$ 299,526
$ 421,500
Source:
Company financial reports |
 28
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Costs & Expenses
(figures in $000s)
Year Ended
Dec. 31, 2006
Year Ended
Dec. 31, 2007
Year Ended
Dec. 31, 2008
Year Ended
Dec. 31, 2009
Year Ended
Dec. 31, 2010
Total costs and expenses*
$ 1,718,853
$ 2,058,694
$ 2,300,530
$ 2,244,505
$ 2,573,529
Less: stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Costs and expenses excluding stock-based
compensation
1,638,568
1,995,845
2,239,239
2,182,844
2,513,839
* Includes cost of revenue, selling and marketing, general and administrative and
technology and content expenses. Source:
Company financial reports
(figures in $000s)
Quarter Ended
Dec 31, 2009
Quarter Ended
Dec 31, 2010
Total costs and expenses*
$ 547,927
641,956
Less: stock-based compensation
(14,994)
(13,126)
Costs and expenses excluding stock-based
compensation
532,933
628,830 |
 29
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
(figures in $000s)
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
Year Ended
Dec. 31,
2010
Adjusted EBITDA
647,797
729,013
774,574
864,314
949,123
Adjusted EBITDA margin
29%
27%
26%
29%
28%
Depreciation
(48,779)
(59,526)
(76,800)
(102,782)
(118,402)
OIBA
599,018
669,487
697,774
761,532
830,721
Source:
Company financial reports
(figures in $000s)
Qtr Ended
Dec 31,
2009
Qtr Ended
Dec 31,
2010
Adjusted EBITDA
190,345
206,852
Adjusted EBITDA margin
27%
26%
Depreciation
(27,442)
(31,797)
OIBA
162,903
175,055 |
 30
Q410 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)
12.31.09
12.31.10
12.31.09
12.31.10
Cost of revenue
607,251
692,832
145,540
176,198
Less: stock-based compensation
(2,285)
(2,401)
(555)
(576)
Cost of revenue excluding stock-based
compensation
604,966
690,431
144,985
175,622
Selling and marketing
1,027,062
1,204,141
234,839
282,454
Less: stock-based compensation
(12,440)
(13,867)
(2,695)
(3,405)
Selling and marketing excluding stock-based
compensation
1,014,622
1,190,274
232,144
279,049
Technology and content
319,708
362,447
85,518
94,939
Less: stock-based compensation
(15,700)
(14,326)
(3,797)
(3,486)
Technology and content excluding stock-
based compensation
304,008
348,121
81,721
91,453
General and administrative
290,484
314,109
82,030
88,365
Less: stock-based compensation
(31,236)
(29,096)
(7,947)
(5,659)
General and administrative excluding stock-
based compensation
259,248
285,013
74,083
82,706
Source:
Company financial reports |
 31
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
(figures in $000s)
3 months ended
Dec 31, 2009
3 months ended
Dec 31, 2010
Net cash used in operating activities
(144,328)
(160,234)
Less: capital expenditures
(29,085)
(41,865)
Free cash flow
(173,413)
(202,099) |
 32
Q410 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
TTM = Trailing Twelve Month periods ended
(figures in $000s)
TTM 3.07
TTM 6.07
TTM 9.07
TTM 12.07
TTM 3.08
TTM 6.08
TTM 9.08
TTM 12.08
Net cash provided by operating
activities
703,569
831,140
859,228
712,069
737,792
660,510
514,242
520,688
Less: capital expenditures
(97,925)
(97,576)
(82,671)
(86,658)
(101,514)
(118,417)
(148,022)
(159,827)
Free cash flow
605,644
733,564
776,557
625,411
636,278
542,093
366,220
360,861
TTM 3.09
TTM 6.09
TTM 9.09
TTM 12.09
TTM 3.10
TTM 6.10
TTM 9.10
TTM 12.10
Net cash provided by operating
activities
458,913
494,184
573,491
676,004
793,527
764,787
793,389
777,483
Less: capital expenditures
(150,025)
(131,146)
(103,775)
(92,017)
(98,306)
(123,093)
(142,409)
(155,189)
Free cash flow
308,888
363,038
469,715
583,987
695,221
641,694
650,980
622,294
Source:
Company financial reports. Numbers may not add due to rounding.
|