-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PS8xQzESrsPJO8cvQIst9+9X1ujpEhKAGZoupzRkZ+UEX+LxqRnGAcvrTEeOH49a mlZ1jidbRG/EsXJMtBcFGg== 0000912057-02-021676.txt : 20020523 0000912057-02-021676.hdr.sgml : 20020523 20020523082139 ACCESSION NUMBER: 0000912057-02-021676 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020522 ITEM INFORMATION: FILED AS OF DATE: 20020523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICELINE COM INC CENTRAL INDEX KEY: 0001075531 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 061528493 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25581 FILM NUMBER: 02660370 BUSINESS ADDRESS: STREET 1: 800 CONNECTICUT AVE CITY: NORWALK STATE: CT ZIP: 06854 BUSINESS PHONE: 2037053000 8-K 1 a2080899z8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 22, 2002 priceline.com Incorporated - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-25581 06-1528493 - -------------------------------------------------------------------------------- (State or other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 800 Connecticut Avenue, Norwalk, Connecticut 06854 - -------------------------------------------------------------------------------- (Address of principal office) (zip code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 9. REGULATION FD DISCLOSURE. On May 22, 2002, priceline.com Incorporated announced in a presentation at Goldman Sachs' 3rd Annual Internet, New Media and E-Commerce Conference in Las Vegas, Nevada that it intended to re-confirm its 2nd quarter 2002 financial guidance. The information set forth above is qualified in its entirety by reference to the press release and priceline.com's presentation materials, each of which is attached hereto as Exhibit 99.1 and 99.2, respectively, and incorporated herein by reference. EXHIBITS. 99.1 Press release issued by priceline.com Incorporated on May 22, 2002. 99.2 Presentation materials presented at the Goldman Sachs' 3rd Annual Internet, New Media and E-Commerce Conference in Las Vegas, Nevada on May 22, 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PRICELINE.COM INCORPORATED By: /s/ Jeffery H. Boyd ------------------------------- Name: Jeffery H. Boyd Title: President and Chief Operating Officer Date: May 22, 2002 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 99.1 Press release issued by priceline.com Incorporated on May 22, 2002. 99.2 Presentation materials presented at the Goldman Sachs' 3rd Annual Internet, New Media and E-Commerce Conference in Las Vegas, Nevada on May 22, 2002. EX-99.1 3 a2080899zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 PRICELINE.COM TO RE-CONFIRM 2ND QUARTER 2002 GUIDANCE AT GOLDMAN SACHS INTERNET CONFERENCE LAS VEGAS, Nev., May 22, 2002 . . . Priceline.com (Nasdaq: PCLN) announced that it intends to re-confirm its 2nd quarter 2002 financial guidance during a presentation this afternoon at the Goldman Sachs Internet Conference. In his presentation, priceline.com Chairman and Chief Executive Officer Richard S. Braddock will state that the Company continues to expect that 2nd quarter 2002 revenue will come in between $320 million and $350 million, which is the range given to analysts in priceline.com's 1st quarter 2002 conference call. Mr. Braddock also will say that priceline.com remains comfortable with its previously stated 2nd quarter pro forma EPS projections of between $0.03 and $0.05 per diluted share. For full-year 2002, Mr. Braddock will say that priceline.com remains comfortable with its previously stated pro forma EPS projections of $0.12 per diluted share. Pro forma EPS is stated before non-cash preferred stock dividends, stock-based compensation, option payroll taxes and restructuring charges. A copy of Mr. Braddock's Goldman Sachs presentation is available for viewing on priceline.com's Web site, WWW.PRICELINE.COM, in the Investor Relations section. ABOUT PRICELINE.COM Priceline.com is the Internet service that offers products for sale in four categories: a travel service that offers airline tickets, hotel rooms, rental cars, cruises and vacation packages; a personal finance service that offers home mortgages, refinancing and home equity loans; an automotive service that offers new cars, and a telecommunications service that offers long distance calling services. Priceline.com licenses its business model to independent licensees, pricelinemortgage and certain international licensees. ### For press information, contact: Brian Ek 203-299-8167 (brian.ek@priceline.com) INFORMATION ABOUT FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals and similar expressions including, without limitation, "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," or "continue" reflecting something other than historical fact are intended to identify forward- looking statements. The following factors, among others, could cause the Company's actual results to differ materially from those described in the forward-looking statements: adverse changes in general market conditions for leisure and other travel products as the result of, among other things, terrorist attacks or hostilities; adverse changes in the Company's relationships with airlines and other product and service providers, including, without limitation, the withdrawal of providers from the priceline.com system; the effects of increased competition; systems-related failures and/or security breaches; the Company's ability to protect its intellectual property rights; losses by the Company and its licensees; legal and regulatory risks and the ability to attract and retain qualified personnel. For a detailed discussion of these and other factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, please refer to the Company's most recent Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. EX-99.2 4 a2080899zex-99_2.txt EXHIBIT 99.2 Exhibit 99.2 - -------------------------------------------------------------------------------- [priceline.com logo] Goldman Sachs Investor Conference ---------------------------------------- May 22, 2002 - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 1 [priceline.com logo] - -------------------------------------------------------------------------------- PRICELINE.COM WOULD LIKE TO REMIND YOU THAT THIS PRESENTATION MAY CONTAIN FORWARD LOOKING STATEMENTS, WHICH ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT; THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED, IMPLIED OR FORECASTED IN ANY SUCH FORWARD-LOOKING STATEMENTS. EXPRESSIONS OF FUTURE GOALS AND SIMILAR EXPRESSIONS INCLUDING, WITHOUT LIMITATION, "MAY," "WILL," "SHOULD," "COULD," "EXPECTS," "DOES NOT CURRENTLY EXPECT," "PLANS," "ANTICIPATES," "BELIEVES," "ESTIMATES," "PREDICTS," "POTENTIAL," "TARGETS," OR "CONTINUE," REFLECTING SOMETHING OTHER THAN HISTORICAL FACT ARE INTENDED TO IDENTIFY FORWARD LOOKING STATEMENTS. THE FOLLOWING FACTORS, AMONG OTHERS, COULD CAUSE PRICELINE.COM'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS: ADVERSE CHANGES IN GENERAL MARKET CONDITIONS FOR LEISURE AND OTHER TRAVEL PRODUCTS AS THE RESULT OF RECENT TERRORIST EVENTS, HOSTILITIES OR OTHER SIMILAR OR RELATED EVENTS; ADVERSE CHANGES IN PRICELINE.COM'S RELATIONSHIPS WITH AIRLINES AND OTHER PRODUCT AND SERVICE PROVIDERS; SYSTEMS-RELATED FAILURES AND/OR SECURITY BREACHES; THE EFFECTS OF INCREASED COMPETITION; PRICELINE.COM'S ABILITY TO PROTECT ITS INTELLECTUAL PROPERTY RIGHTS; LOSSES BY PRICELINE.COM AND ITS LICENSEES; ANY ADVERSE IMPACT FROM NEGATIVE PUBLICITY AND NEGATIVE CUSTOMER REACTION TO SUCH PUBLICITY; LEGAL AND REGULATORY RISKS AND THE ABILITY TO ATTRACT AND RETAIN QUALIFIED PERSONNEL. FOR A DETAILED DISCUSSION OF THESE AND OTHER FACTORS THAT COULD CAUSE PRICELINE.COM'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS, PLEASE REFER TO PRICELINE.COM'S MOST RECENT FORM 10-Q, FORM 10-K AND FORM 8-K FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. UNLESS REQUIRED BY LAW, PRICELINE.COM UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 2 [priceline.com logo] - --------------------------------------------------------------------------------------------------------------------------- HISTORICAL RESULTS: POST-IPO QUARTERLY PERFORMANCE
Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Revenue $ 111.6 $ 152.2 $ 169.2 $ 313.8 $ 352.1 $ 341.3 $ 228.2 $ 269.7 $ 364.8 $ 302.0 Pro Forma EPS $ (0.10) $ (0.08) $ (0.06) $ (0.04) $ (0.01) $ (0.01) $ (0.15) $ (0.03) $ 0.05 $ 0.03 Margin 9.4% 12.0% 14.2% 15.6% 15.7% 15.9% 15.4% 16.0% 16.5% 16.7% Contribution $ 10.5 $ 18.2 $ 24.1 $ 49.0 $ 55.2 $ 54.4 $ 35.1 $ 43.1 $ 60.1 $ 50.4 Q4 01 Q1 02 Revenue $ 235.3 $ 261.9 Pro Forma EPS $ 0.01 $ 0.02 Margin 16.7% 16.0% Contribution $ 39.3 $ 42.0 - --------------------------------------------------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 3
[priceline.com logo] - ----------------------------------------------------------------------------------------- KEY STRENGTHS: TRAVEL DIVERSIFICATION % BOOKED OFFERS Air Booked Offers 886,135 590,088 709,576 963,167 779,319 584,505 Hotel Booked Offers 244,655 176,712 188,278 311,121 394,807 384,463 Rental Car Booked Offers 107,058 93,757 105,970 162,053 160,603 135,781 ------------------------------------------------------------------ 1,237,848 860,557 1,003,824 1,436,341 1,334,729 1,104,749 Air Booked Offers 71.6% 68.6% 70.7% 67.1% 58.4% 52.9% Hotel Booked Offers 19.8% 20.5% 18.8% 21.7% 29.6% 34.8% Rental Car Booked Offers 8.6% 10.9% 10.6% 11.3% 12.0% 12.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - ---------------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 4
[priceline.com logo] - -------------------------------------------------------------------------------- KEY STRENGTHS: BRAND o Powerful Brand Awareness: Top 5 Internet Brand [AMERICA ONLINE.COM LOGO] [AMAZON.COM LOGO] [priceline.com LOGO] [EBAY.COM LOGO] [YAHOO.COM LOGO] - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 5 [priceline.com logo] - -------------------------------------------------------------------------------- KEY STRENGTHS: BRAND o BEST PLACE TO SAVE ON THE INTERNET
Q2 01 Q3 01 Q4 01 Q1 02 priceline 40% 36% 31% 34% Travelocity 24% 23% 30% 27% Expedia 17% 16% 12% 14% Hotwire 8% 14% 10% 12% Orbitz NA 10% 13% 12%
Percentage of those aware of each particular brand that said the brand has or gets the best deals out there. SOURCE: MILLWARD BROWN - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 6 [priceline.com logo] - -------------------------------------------------------------------------------- KEY STRENGTHS: CUSTOMER FRANCHISE GROWING REPEAT
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 ------------------------------------------------------------------------------------------------------------ Cumulative Customers 6,766,773 8,110,798 8,994,660 9,886,150 10,911,191 11,838,529 12,692,611 13,567,403 % Repeat Offers 39.0% 51.3% 54.5% 57.7% 61.2% 62.7% 63.6% 63.6%
GROWING CUSTOMER LOYALTY
2Q01 3Q01 4Q01 1Q02 % of Offers from Previously Bound Customers 43.00% 48.10% 53.80% 54.20%
YEAR/YEAR DEMAND GROWTH 2Q01 2,645,198 107% 3Q01 2,487,065 90% 4Q01 2,346,024 121% 1Q02 2,405,537 114%
- -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 7 [priceline.com logo] - --------------------------------------------------------------------------------
2001 2002 LONG Q1 Q1 TERM -------------- -------------- -------------- Revenue 100.0% 100.0% 100.0% Gross Profit 16.0% 16.0% 17.5% Advertising 6.0% 3.9% 3.0% Fixed Costs 7.6% 6.6% 4.3% Variable Costs 5.4% 4.0% 4.0% -------------- -------------- -------------- Operating Expenses 19.0% 14.5% 11.3% Operating Income -3.0% 1.5% 6.2%
- -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 8 [priceline.com logo] - -------------------------------------------------------------------------------- KEY STRENGTHS: FINANCIAL LEVERAGE o Gross margin minus variable expenses running at all-time high
Margin after Variable Expenses 2Q99 1.9% 3Q99 4.4% 4Q99 6.6% 1Q00 9.2% 2Q00 8.9% 3Q00 9.7% 4Q00 8.5% 1Q01 10.6% 2Q01 11.2% 3Q01 9.9% 4Q01 10.5% 1Q02 12.0%
- -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 9 [priceline.com logo] - -------------------------------------------------------------------------------- CURRENT ENVIRONMENT ASSESSMENT o Continued airline dislocation/turbulence o Ultimate, inevitable return to higher (leisure) fares beginning o Continued attractiveness of Internet travel -- Market growth abates o Shift of margin/pricing to consumer -- Some margin erosion o Limited visibility - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 10 [priceline.com logo] - -------------------------------------------------------------------------------- KEY ASSETS IN PLACE o Brand Name/Investment o Cash Q1: $178M o Margin o Lower break-even than any other broad-line seller of travel on the Internet o Successfully managed through historical volatility o Substantial NOLs - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 11 [priceline.com logo] - -------------------------------------------------------------------------------- GROWTH INITIATIVES o Business Recovery o New Products -- Vacation Packages -- Cruises - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 12 [priceline.com logo] - -------------------------------------------------------------------------------- PRICELINE VACATIONS "BUILD YOUR OWN VACATION, NAME YOUR OWN PRICE" [GRAPHIC OMITTED] PRICELINE.COM VACATIONS IS AN ATTRACTIVE PRODUCT EXTENSION OPPORTUNITY, OFFERING: Entry into the $1.4B online packaged vacation market - Higher revenue/sale - Higher margins Operating leverage from priceline's core product - Limited capital expenditure - Built on strength of existing supplier relationships Enhancement of priceline's key brand attributes - Maintains/supports ownership of "Best Deal" - Broadens brand appeal - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 13 [priceline.com logo] - -------------------------------------------------------------------------------- GROWTH INITIATIVES o Business Recovery o New Products -- Vacation Packages -- Cruises o eBay - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 14 [priceline.com logo] - -------------------------------------------------------------------------------- EBAY PARTNERSHIP [eBay logo] o Unique travel offering o Business relationship o Access eBay's 42 million registered users o Brand compatibility o "Powered By Priceline" platform - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 15 [priceline.com logo] - -------------------------------------------------------------------------------- GROWTH INITIATIVES o Business Recovery o New Products -- Vacation Packages -- Cruises o eBay o Horizontality - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 16 [priceline.com logo] - -------------------------------------------------------------------------------- PRICELINE HOME FINANCE o Priceline Mortgage: JV between Priceline (49%)/First Alliance Bank(51%) -- Best rates and closing costs available (guaranteed) -- Float down protection and loan-level pricing -- No tradeoffs -- Impressive growth with limited marketing support o Online mortgage penetration gaining consumer acceptance: 1% in 1999; 15% in 2003(1) (1) Source: Morgan Stanley Research - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 17 - -------------------------------------------------------------------------------- [priceline.com logo] - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of PRICELINE.COM incorporated. All Right Reserved. o 5/22/2002 Page 18 -----END PRIVACY-ENHANCED MESSAGE-----