EX-99.2 3 v40308exv99w2.htm EXHIBIT 99.2 exv99w2
 

Exhibit 99.2
 
Additional Information Regarding Non-GAAP Financial Measures
During the first quarter of 2008, we began to exclude foreign exchange gains or losses on USD cash balances held by eLong, Inc. (a majority-owned subsidiary) from Adjusted earnings per share, a Non-GAAP financial measure, as we expect to use the cash to settle foreseeable USD obligations and commitments only. The table below provides a quantitative reconciliation between Adjusted earnings per share excluding foreign exchange gains or losses on USD cash balances held by eLong, Inc. and Diluted earnings per share, the most comparable financial measure calculated in accordance with GAAP.
                                                                                         
    Three months     Three months     Three months     Three months     Three months     Three months     Three months     Three months     Three months        
    ended     ended     ended     ended     ended     ended     ended     ended     ended     Years ended  
    March 31,     December 31,     September 30,     June 30,     March 31,     December 31,     September 30,     June 30,     March 31,     December 31,  
    2008     2007     2007     2007     2007     2006     2006     2006     2006     2007     2006  
    (in thousands, except per share data)  
Net income
  $ 51,306     $ 65,357     $ 99,595     $ 96,136     $ 34,776     $ 67,140     $ 58,977     $ 95,482     $ 23,335     $ 295,864     $ 244,934  
Amortization of intangible assets
    18,051       18,257       18,613       19,503       21,196       23,906       26,569       30,120       30,171       77,569       110,766  
Stock-based compensation
    17,806       18,600       14,417       13,972       15,860       22,738       16,439       17,221       23,887       62,849       80,285  
Foreign currency loss on U.S. dollar cash balances held by eLong
    5,275       3,636       1,836       2,007       1,163       2,377       1,063       489       438       8,642       4,367  
Amortization of non-cash distribution and marketing
                                  60       711       627       8,240             9,638  
Impairment of intangible asset
                                        47,000                         47,000  
Federal excise tax refunds
                      (12,058 )                                   (12,058 )      
Unrealized (gain) loss on derivative instruments, net
    (4,980 )     (190 )     1,394       3,153       1,391       3,472       603       (7,912 )     (4,300 )     5,748       (8,137 )
Amortization of intangible assets as part of equity method investments
    650       839       934       551                                     2,324        
Minority interest
    (2,201 )     (1,813 )     (913 )     (1,072 )     (717 )     (1,263 )     (646 )     (426 )     (511 )     (4,515 )     (2,656 )
Provision for income taxes
    (14,908 )     (7,181 )     (11,943 )     (7,329 )     (14,086 )     (18,861 )     (32,972 )     (17,138 )     (24,135 )     (40,539 )     (93,106 )
                                                                   
Adjusted net income
  $ 70,999     $ 97,505     $ 123,933     $ 114,863     $ 59,583     $ 99,569     $ 117,744     $ 118,463     $ 57,125     $ 395,884     $ 393,091  
                                                                   
 
                                                                                       
GAAP diluted weighted average shares outstanding
    294,031       300,530       312,756       320,196       323,749       343,586       341,137       359,090       365,168       314,233       352,181  
Additional restricted stock units
    7,200       5,736       6,159       7,087       5,964       5,849       6,761       7,093       5,054       6,237       6,189  
                                                                   
Adjusted weighted average shares outstanding
    301,231       306,266       318,915       327,283       329,713       349,435       347,898       366,183       370,222       320,470       358,370  
                                                                   
 
                                                                                       
Diluted earnings per share
  $ 0.17     $ 0.22     $ 0.32     $ 0.30     $ 0.11     $ 0.20     $ 0.17     $ 0.27     $ 0.06     $ 0.94     $ 0.70  
                                                                   
Adjusted earnings per share
    0.24       0.32       0.39       0.35       0.18     $ 0.28       0.34       0.32       0.15     $ 1.24     $ 1.10