EX-99.1 3 a2122473zex-99_1.htm EXHIBIT 99.1

 

EXHIBIT 99.1

 

 

 

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Recent Financial

Results

 

Dara Khosrowshahi

Executive Vice President & CFO

 

 



 

Gross Transaction Value

 

[CHART]

 

IAC/InterActiveCorp

 



 

Revenue

 

[CHART]

 

 

Includes results from continuing operations. 2002 is pro forma for Expedia.

 

 



 

OIBA

 

[CHART]

 

Includes results from continuing operations. 2002 is pro forma for Expedia.

 

 



 

Q3 P&L Summary

 

$ in millions, except per share data

 

Q3 03

 

Q3 02

 

GROWTH %

 

Revenue

 

$

1,610

 

$

1,185

 

36

%

OIBA

 

192

 

96

 

100

%

Net Income

 

19

 

(37

)

nm

 

Diluted EPS

 

$

0.02

 

$

(0.07

)

nm

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

$

130

 

$

47

 

173

%

Adjusted Shares Outstanding

 

786

 

688

 

14

%

Adjusted EPS

 

$

0.17

 

$

0.07

 

153

%

 

Includes results from continuing operations.

 

 



 

Q3 Charges

 

$ in millions, except per share data

 

Q3 03

 

Q3 02

 

GROWTH %

 

OIBA after Charges

 

192

 

96

 

100

%

CHARGES:

 

 

 

 

 

 

 

Hotels.com

 

4

 

 

 

 

TVTS Satellite Contract

 

5

 

 

 

 

PRC Real Estate & Software

 

2

 

 

 

 

HSN Italy Write-Off

 

 

31

 

 

 

Total Charges/OIBA Impact

 

$

11

 

$

31

 

 

 

OIBA before Charges

 

$

203

 

$

127

 

60

%

Adjusted Net Income before Charges

 

$

141

 

$

79

 

79

%

 

 



 

Q3 Segment Financials

 

$ in millions

 

REVENUE

 

OIBA

 

 

 

2002

 

2003

 

GROWTH %

 

2002

 

2003

 

GROWTH %

 

IAC Travel

 

$

459

 

$

734

 

60

%

$

84

 

$

138

 

64

%

Electronic Retailing

 

450

 

526

 

17

%

8

 

48

 

515

%

Ticketing

 

162

 

178

 

10

%

26

 

32

 

25

%

Personals

 

34

 

48

 

44

%

5

 

10

 

107

%

Local Services

 

8

 

29

 

283

%

(7

)

(18

)

159

%

Financial Services & Real Estate

 

 

24

 

nm

 

 

3

 

nm

 

Teleservices

 

75

 

76

 

1

%

1

 

2

 

99

%

Corporate & Other

 

(2

)

(5

)

nm

 

(21

)

(23

)

nm

 

Total

 

$

1,185

 

$

1,610

 

36

%

$

96

 

$

192

 

100

%

 

 

 



 

 

Leverage

 

SELLING & MARKETING as % OF REVENUE

 

[CHART]

 

Sources: IAC public filings. YTD 2003 OIBA margin is before “unusual” charges in Q3 03 as discussed on Q3 earnings release.

 

 



 

 

Free Cash Flow

 

[CHART]

 

 



 

 

Travel Working Capital

(Expedia & Hotels. com)

 

$ in millions

 

2002

 

2003E

 

Increase in Gross Bookings

 

$

2,834

 

$

3,000+

 

Increase in Working Capital

 

$

220

 

$

310 - $360

 

Increase in Working Capital as % of Gross Bookings Increase

 

~8

%

~10

%

 

 



 

 

YTD Cash Deployment

 

[CHART]

 

Acquisitions include Hotwire and Anyway. com (transactions pending). Repurchases include stock, bonds and warrants.

 



 

 

Current Capitalization

 

[CHART]

 

Proforma for acquisitions of Hotwire and Anyway. com (transaction pending).

 

 



 

Cash Cushion

 

$ in millions

 

 

 

Pro Forma 9/30/03 Cash Balance

 

$3,790

 

 

 

 

 

Stock Repurchases (50m Shares @ $35)

 

$(1,750

)

 

 

 

 

Available Cash

 

$2,040

 

 

 

 

 

Cash Cushion (working capital, growth, acquisitions)

 

$(1,500) - $(2,000

)

 

 

 

 

Excess Cash

 

$40 - $540

 

 

 

 

 

VUE Securities

 

$2,200

 

 

 

 

 

Cash & Securities Available

 

$2,240 - $2,740

 

 

 

9/30/03 cash balance pro forma for acquisitions of Hotwire and Anyway.com (transaction pending).

 

 



 

2004 Growth Initiatives

 

IAC/Travel

 

IAC/Electronic Retailing

 

IAC/Ticketing

 

IAC/Personals

 

 International

 

 Customer Service

 

 Upgrade of Core Technology

 

New products

 

 Corporate Travel

 

 Fulfillment capabilities

 

 International Rebuild

 

 Advanced Search

 

 New Products

 

 

 

 New products

 

 Community

 

 

 

 

 

 

 

 Quizlets

 

 

 

 

 

 

 

 Events

 

 

 

 

 

 

 

 

 

IAC/Local Services

 

IAC/Financial Services & Real Estate

 

Interactive Development

 

 Online product

 

 Real Estate

 

 New ideas

 

 Registered card

 

 New technology

 

 

 

 Pay for Performance

 

 

 

 

 

 

 



 

2004 Growth Initiatives

 

[CHART]

 

 



 

OIBA Growth Estimate

 

[CHART]

 

 



 

Perspective

 

            •   Focus on near term and long term financial performance

 

            •   Significant free cash flow generation

 

            •   Strong balance sheet

 

            •   Use business leverage to invest in growth initiatives