Delaware | 1-36691 | 06-1528493 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
800 Connecticut Avenue, Norwalk, Connecticut | 06854 | |
(Address of principal office) | (zip code) |
99.1 | Schedule of certain prior period non-GAAP results under new reporting methodology. The information in Exhibit 99.1 shall be treated as "furnished" to the Securities and Exchange Commission for purposes of the Securities Exchange Act of 1934, as amended. |
THE PRICELINE GROUP INC. | |||
By: | /s/ Peter J. Millones | ||
Name: | Peter J. Millones | ||
Title: | Executive Vice President, General Counsel and Secretary |
99.1 | Schedule of certain prior period non-GAAP results under new reporting methodology. |
The Priceline Group Inc. | Three Months Ended | Year Ended | |||||||||||||||||||||||||||
(In thousands, except per share data) | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | December 31, | ||||||||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||||||||
Reconciliation of Operating Income to Non-GAAP Operating Income | |||||||||||||||||||||||||||||
Operating Income | $ | 433,969 | $ | 678,331 | $ | 1,488,707 | $ | 657,900 | $ | 550,318 | $ | 732,407 | $ | 3,258,907 | |||||||||||||||
(a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
(b) | Amortization of intangible assets | 43,328 | 42,653 | 42,229 | 42,767 | 42,385 | 43,041 | 170,977 | |||||||||||||||||||||
Non-GAAP Operating income | $ | 460,893 | $ | 720,984 | $ | 1,517,281 | $ | 700,667 | $ | 592,703 | $ | 775,448 | $ | 3,399,825 | |||||||||||||||
% of Non-GAAP Gross profit * | 27.8 | % | 34.4 | % | 51.7 | % | 37.3 | % | 29.3 | % | 31.9 | % | 39.7 | % | |||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA | |||||||||||||||||||||||||||||
Net Income | $ | 333,327 | $ | 517,032 | $ | 1,196,732 | $ | 504,269 | $ | 374,424 | $ | 580,638 | $ | 2,551,360 | |||||||||||||||
(a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
(c) | Depreciation & amortization | 65,002 | 67,674 | 69,054 | 70,764 | 72,871 | 77,712 | 272,494 | |||||||||||||||||||||
(d) | Interest income | (11,596 | ) | (13,037 | ) | (14,682 | ) | (16,414 | ) | (20,347 | ) | (21,292 | ) | (55,729 | ) | ||||||||||||||
(d) | Interest expense | 33,479 | 41,547 | 41,436 | 43,767 | 46,894 | 50,290 | 160,229 | |||||||||||||||||||||
(e) | Loss on extinguishment of convertible debt | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||
(f) | Impairment of cost-method investments | — | — | — | — | 50,350 | 12,858 | — | |||||||||||||||||||||
(g) | Income tax expense | 73,916 | 131,345 | 259,438 | 112,261 | 86,069 | 111,910 | 576,960 | |||||||||||||||||||||
Adjusted EBITDA | $ | 477,727 | $ | 744,561 | $ | 1,538,323 | $ | 714,647 | $ | 610,261 | $ | 812,116 | $ | 3,475,258 | |||||||||||||||
% of Non-GAAP Gross profit * | 28.9 | % | 35.6 | % | 52.4 | % | 38.0 | % | 30.2 | % | 33.4 | % | 40.6 | % | |||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income | |||||||||||||||||||||||||||||
Net Income | $ | 333,327 | $ | 517,032 | $ | 1,196,732 | $ | 504,269 | $ | 374,424 | $ | 580,638 | $ | 2,551,360 | |||||||||||||||
(a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
(b) | Amortization of intangible assets | 43,328 | 42,653 | 42,229 | 42,767 | 42,385 | 43,041 | 170,977 | |||||||||||||||||||||
(e) | Debt discount amortization related to convertible debt | 15,775 | 15,575 | 15,703 | 15,832 | 15,962 | 16,093 | 62,885 | |||||||||||||||||||||
(e) | Loss on extinguishment of convertible debt | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||
(f) | Impairment of cost-method investments | — | — | — | — | 50,350 | 12,858 | — | |||||||||||||||||||||
(h) | Tax impact of Non-GAAP adjustments | (16,203 | ) | (21,816 | ) | (16,150 | ) | (22,222 | ) | (22,140 | ) | (22,255 | ) | (76,391 | ) | ||||||||||||||
Non-GAAP Net Income | $ | 359,826 | $ | 553,444 | $ | 1,224,859 | $ | 540,646 | $ | 460,981 | $ | 630,375 | $ | 2,678,775 | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Net Income Per Share | |||||||||||||||||||||||||||||
GAAP weighted average number of diluted common shares outstanding | 52,406 | 52,038 | 51,130 | 50,403 | 50,129 | 50,059 | 51,593 | ||||||||||||||||||||||
Non-GAAP Net income per diluted common share | $ | 6.87 | $ | 10.64 | $ | 23.96 | $ | 10.73 | $ | 9.20 | $ | 12.59 | $ | 51.92 | |||||||||||||||
Notes: | |||||||||||||||||||||||||||||
* | Non-GAAP gross profit is unchanged from figures previously reported. | ||||||||||||||||||||||||||||
(a) | Adjustment for travel transaction taxes (including estimated interest and penalties) principally related to a favorable ruling in the State of Hawaii is recorded in Cost of revenues. | ||||||||||||||||||||||||||||
(b) | Amortization of intangible assets is recorded in Depreciation and amortization. | ||||||||||||||||||||||||||||
(c) | Depreciation and amortization are excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
(d) | Interest income and Interest expense are excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
(e) | Non-cash interest expense related to the amortization of debt discount and loss on early extinguishment of convertible debt are recorded in Interest expense and Foreign currency transactions and other, respectively. | ||||||||||||||||||||||||||||
(f) | Impairment of cost-method investments is recorded in Other income (expense) and principally relates to our investment in Hotel Urbano. | ||||||||||||||||||||||||||||
(g) | Income tax expense is excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
(h) | Reflects the tax impact of non-GAAP adjustments. | ||||||||||||||||||||||||||||
For a more detailed discussion of the adjustments described above, please see the section in our most recent earnings press release entitled "Non-GAAP Financial Measures" which provides a definition and information about the use of non-GAAP financial measures. |