BEIJING, Aug. 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
- Accommodation reservation[1] 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.
- 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
|
- Mobile bookings comprised more than 75% of eLong brand
room nights[4] in the second quarter, and cumulative downloads of
eLong mobile apps reached approximately 290 million.
- 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.
- 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.
- 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
|
|
%
|
|
Q2
2014
|
|
%
|
|
Y/Y
|
Total
|
Total
|
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.
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
|
|
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
|
[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.
|
[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.
|
Logo - http://photos.prnewswire.com/prnh/20041118/ELONGLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/elong-reports-second-quarter-2015-unaudited-financial-results-300122489.html
SOURCE eLong, Inc.