SHANGHAI, Aug. 5 /PRNewswire-Asia/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the quarter ended June 30, 2009.
Highlights for the Second Quarter of 2009
-- Net revenues were RMB476 million (US$70 million) for the second quarter
of 2009, up 27% year-on-year.
-- For the second quarter of 2009, Ctrip consolidated the financial
statements of ezTravel, a Taiwan based on-line travel service provider.
Excluding net revenues attributable to ezTravel, Ctrip's net revenues
were RMB453 million (US$66 million) for the second quarter of 2009, up
21% year-on-year.
-- Gross margin was 77% for the second quarter of 2009, compared to 79% in
the same period in 2008.
-- Income from operations was RMB164 million (US$24 million) for the
second quarter of 2009, up 29% year-on-year. Excluding share-based
compensation charges (non-GAAP), income from operations was RMB191
million (US$28 million), up 20% year-on-year.
-- Operating margin was 34% in the second quarter of 2009, remaining
consistent with the second quarter of 2008. Excluding share-based
compensation charges (non-GAAP), operating margin was 40%, compared to
42% during the same period in 2008.
-- Net income attributable to Ctrip's shareholders was RMB159 million
(US$23 million) in the second quarter of 2009, up 33% year-on-year.
Excluding share-based compensation charges (non-GAAP), net income
attributable to Ctrip's shareholders was RMB186 million (US$27 million),
up 23% year-on-year.
-- Diluted earnings per ADS were RMB2.27 (US$0.33). Excluding share-based
compensation charges (non-GAAP), diluted earnings per ADS were RMB2.66
(US$0.39).
-- Share-based compensation charges were RMB27 million (US$4 million),
accounting for 6% of the net revenues, or RMB0.39 (US$0.06) per ADS,
for the second quarter of 2009.
"We are pleased that our team once again delivered solid results in the second quarter of 2009. We strengthened our competitiveness despite the challenges that we faced during this period," said Min Fan, Chief Executive Officer of Ctrip, "We will continue to improve our customer service, to apply new technologies, and to broaden sales and marketing channels in order to extend our leadership."
Second Quarter 2009 Financial Results
For the second quarter of 2009, Ctrip reported total revenues of RMB508 million (US$74 million), representing a 26% increase from the same period in 2008 and an 18% increase from the previous quarter.
Hotel reservation revenues amounted to RMB227 million (US$33 million) for the second quarter of 2009, representing a 16% increase year-on-year, and a 21% increase quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB223 million (US$33 million), representing a 14% increase year-on-year, primarily driven by a 26% increase in hotel reservation volume, which was partially offset by a decrease in commission per room. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues increased by 19% quarter-on-quarter, primarily driven by a 24% increase in hotel room reservation volume, which was partially offset by a decrease in commission per room.
Air-ticketing revenues for the second quarter of 2009 were RMB222 million (US$33 million), representing a 32% increase year-on-year, and a 20% increase quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues were RMB215 million (US$31 million) for the second quarter of 2009, representing a 27% increase year-on-year, primarily driven by a 42% increase in air-ticketing sales volume, which was partially offset by a decrease in commission per ticket. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues grew 17% quarter-on-quarter, primarily driven by increases in air-ticketing sales volume and commission per ticket.
Packaged-tour revenues for the second quarter of 2009 were RMB36 million (US$5 million), representing a 51% increase year-on-year, and a 5% decrease quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues for the second quarter of 2009 increased by 13% year-on-year, due to the increase in the leisure travel volume. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues decreased by 28% quarter-on-quarter, primarily due to the impact of H1N1 flu and the seasonality of leisure travel.
For the second quarter of 2009, net revenues were RMB476 million (US$70 million), a 27% increase from the same period in 2008 and a 19% increase from the previous quarter. Excluding net revenues attributable to ezTravel, net revenues were RMB453 million (US$66 million), a 21% increase from the same period in 2008 and a 13% increase from the previous quarter.
Gross margin was 77% in the second quarter of 2009, compared with 79% in the same period in 2008 and 78% in the previous quarter.
Product development expenses for the second quarter of 2009 increased by 34% to RMB76 million (US$ 11 million) from the same period in 2008, and by 20% from the previous quarter, primarily due to the increase in product development personnel. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, compared to 13% in the same period of last year and 14% in the previous quarter.
Sales and marketing expenses for the second quarter of 2009 increased by 21% to RMB83 million (US$12 million) from the same period in 2008 and by 17% from the previous quarter primarily due to the increase in sales and marketing activities and personnel. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 17% of the net revenues, which was consistent with that in the same period last year and in the previous quarter.
General and administrative expenses for the second quarter of 2009 increased by 6% to RMB45 million (US$7 million) from the same period in 2008 and 10% from the previous quarter primarily due to the increase in personnel. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, which was consistent with that in the same period last year and in the previous quarter.
Income from operations for the second quarter of 2009 was RMB164 million (US$24 million), representing a 29% increase from the same period in 2008 and a 21% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB191 million (US$28 million), representing a 20% increase from the same period in 2008 and an 18% increase from the pervious quarter.
Operating margin was 34% in the second quarter of 2009, remaining consistent with the second quarter of 2008 and that of the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 40% in the second quarter of 2009 compared to 42% in the second quarter of 2008, and remained consistent with that in the previous quarter.
Net income attributable to Ctrip's shareholders for the second quarter of 2009 was RMB159 million (US$23 million), representing a 33% increase from the same period in 2008, and a 31% increase from the previous quarter. Net income attributable to Ctrip's shareholders for the current quarter includes equity income of RMB7 million (US$1 million) from the Home Inns' investment, which represents proportional equity pick-up of its results of operations from the third quarter of 2008 through the first quarter of 2009 as required by applicable accounting guidelines. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB186 million (US$27 million), representing a 23% increase from the same period in 2008, and a 25% increase from the previous quarter.
The effective tax rate for the second quarter of 2009 decreased to 18%, compared to 26% in the same period of 2008 due to the application of the High and New Technology Enterprise preferential treatment to certain of Ctrip's PRC subsidiaries. The effective tax rate for the second quarter of 2009 remained consistent with that in the previous quarter.
Diluted earnings per ADS were RMB2.27 (US$0.33) for the second quarter of 2009. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.66 (US$0.39).
As of June 30, 2009, the balance of cash and short-term investment was RMB1.2 billion (US$182 million).
Business Outlook
For the third quarter of 2009, Ctrip expects the year-on-year net revenue growth of approximately 25%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.
Conference Call
Ctrip's management team will host a conference call at 9:00PM US Eastern Time on August 4, 2009 (or 9:00AM on August 5, 2009 in the Shanghai/HK time zone) following the announcement.
The conference call will be available on Webcast live and replay at: http://ir.ctrip.com . The call will be archived for one month at this website.
The dial-in details for the live conference call: U.S. Toll Free Number +1.888.679.8033, International dial-in number +1.617.213.4846; Passcode 15953252. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=PDBMGV6JP .
A telephone replay of the call will be available after the conclusion of the conference call through August 12, 2009. The dial-in details for the replay: U.S. Toll Free Number +1.888.286.8010, International dial-in number +1.617.801.6888; Passcode 64332280.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expect," "anticipate," "future," "intend," "plan," "believe" "estimate," and "confident" and similar statements. Among other things, quotations from management and the Business Outlook section in this press release, as well as Ctrip's strategic and operational plans, contain forward-looking statements. Ctrip may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Ctrip's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, a reoccurrence of slow-down of economic growth in China and the worldwide recession, declines or disruptions in the travel industry, volatility in the trading price of Ctrip's ADSs, Ctrip's reliance on the relationships with travel suppliers and strategic alliances, failure to further increase Ctrip's brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, damage to or failure of Ctrip's infrastructure and technology, loss of services of Ctrip's key executives, risks associated with any strategic investments or acquisitions, risks related to health epidemics, such as outbreaks of H1N1 flu (swine flu), SARS or avian flu, that may materially disrupt the travel industry, risks and uncertainties associated with PRC laws and regulations governing internet content providers and affecting Ctrip's business in China, Ctrip's failure to prevent others from using its intellectual property, Ctrip's failure to successfully manage current growth and potential future growth, and other risks outlined in Ctrip's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of August 4, 2009, and Ctrip does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Ctrip's unaudited consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), Ctrip uses non-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income, and diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under Statement of Financial Accounting Standard 123R, "Share-Based Payment" for 2009 and 2008. Ctrip's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provides the management better capability to plan and forecast future periods.
The non-GAAP information is not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for the GAAP results. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in our business for the foreseeable future.
Reconciliations of Ctrip's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.
About Ctrip.com International, Ltd.
Ctrip.com International, Ltd. is a leading travel service provider of hotel accommodations, airline tickets and packaged tours in China. Ctrip aggregates information on hotels and flights and enables customers to make informed and cost-effective hotel and flight bookings. Ctrip also sells packaged tours that include transportation and accommodations, as well as guided tours in some instances. Ctrip targets primarily business and leisure travelers in China who do not travel in groups. These travelers form a traditionally under-served yet fast-growing segment of the travel industry in China. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China.
For further information:
Jade Wei
Ctrip.com International, Ltd.
Tel: +86-21-3406-4880 x11543
Email: yuwei@ctrip.com
Lin Zhang
Ctrip.com International, Ltd.
Tel: +86-21-3406-4880 x12920
Email: z_lin@ctrip.com
Ctrip.com International, Ltd.
Consolidated Balance Sheet Information
December 31, June 30, June 30,
2008 2009 2009
RMB RMB USD
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash 1,069,827,364 1,075,353,097 157,440,938
Restricted cash 6,600,000 51,991,541 7,612,009
Short-term investment 176,585,908 113,175,500 16,569,866
Accounts receivable, net 274,302,454 392,658,712 57,488,611
Prepayments and other current
assets 95,150,506 93,357,800 13,668,384
Deferred tax assets 8,840,772 11,356,543 1,662,696
Total current assets 1,631,307,004 1,737,893,193 254,442,504
Long-term deposits 145,500,002 143,441,978 21,001,139
Land use rights 111,510,231 110,216,124 16,136,588
Property, equipment and
software 346,117,083 397,440,374 58,188,688
Investment 237,943,497 632,282,851 92,571,645
Goodwill 63,689,736 322,936,838 47,280,730
Other long-term assets 24,498,763 67,688,042 9,910,111
Total assets 2,560,566,316 3,411,899,400 499,531,405
LIABILITIES
Current liabilities:
Accounts payable 138,657,593 294,477,061 43,113,973
Salary and welfare payable 65,590,151 86,008,912 12,592,444
Taxes payable 54,745,686 75,500,287 11,053,891
Advances from customers 187,576,416 162,314,375 23,764,220
Accrued liability for
customer reward program 58,046,062 69,762,952 10,213,896
Deferred tax liabilities -- 17,404,821 2,548,216
Other payables and accruals 121,421,617 149,279,791 21,855,845
Total current liabilities 626,037,525 854,748,199 125,142,485
Other long-term payables 812,500 -- --
Total liabilities 626,850,025 854,748,199 125,142,485
SHAREHOLDERS' EQUITY
Share capital 2,761,259 2,773,873 406,119
Additional paid-in capital 967,687,772 1,067,763,472 156,329,752
Statutory reserves 75,948,298 60,579,898 8,869,418
Accumulated other
comprehensive loss (175,929,389) (76,830,002) (11,248,573)
Retained Earnings 1,060,620,258 1,340,871,346 196,315,093
Noncontrolling interests* 2,628,093 161,992,614 23,717,111
Total shareholders' equity 1,933,716,291 2,557,151,201 374,388,920
Total liabilities and
shareholders' equity 2,560,566,316 3,411,899,400 499,531,405
* It reflects implementation of SFAS No.160, Noncontrolling Interests in
Consolidated Financial Statements-an amendment of ARB No.51.
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
June 30, 2008 March 31, 2009 June 30, 2009 June 30, 2009
RMB RMB RMB USD
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Hotel
reservation 195,873,161 187,312,294 226,835,080 33,210,606
Air-ticketing 168,818,839 184,494,502 222,283,380 32,544,198
Packaged tour 23,831,611 37,717,241 35,874,457 5,252,329
Others 13,361,644 19,077,054 22,665,693 3,318,452
Total revenues 401,885,255 428,601,091 507,658,610 74,325,585
Less: business
tax and related
surcharges (26,841,572) (28,023,671) (31,371,685) (4,593,084)
Net revenues 375,043,683 400,577,420 476,286,925 69,732,501
Cost of revenues (79,671,771) (89,970,448) (108,061,461) (15,821,127)
Gross profit 295,371,912 310,606,972 368,225,464 53,911,374
Operating
expenses:
Product
development* (56,890,322) (63,322,718) (76,285,782) (11,168,894)
Sales and
marketing* (68,281,458) (70,724,071) (82,817,192) (12,125,149)
General and
administrative*(42,902,709) (41,321,278) (45,444,456) (6,653,459)
Total operating
expenses (168,074,489) (175,368,067) (204,547,430) (29,947,502)
Income from
operations 127,297,423 135,238,905 163,678,034 23,963,872
Interest income 9,272,875 3,363,165 5,000,977 732,186
Other income 24,597,709 9,673,844 18,276,381 2,675,819
Income before
income tax
expense and
equity income 161,168,007 148,275,914 186,955,392 27,371,877
Income tax
expense (41,600,995) (26,792,879) (33,393,036) (4,889,028)
Equity income in
affiliates -- -- 6,581,137 963,535
Net income 119,567,012 121,483,035 160,143,493 23,446,384
Less: Net income
attributable to
noncontrolling
interests** (251,471) (90,755) (1,284,685) (188,089)
Net income
attributable to
Ctrip's
shareholders 119,315,541 121,392,280 158,858,808 23,258,295
Earnings per
ordinary share
- Basic 3.58 3.62 4.73 0.69
- Diluted 3.44 3.57 4.54 0.67
Earnings per ADS
- Basic 1.79 1.81 2.37 0.35
- Diluted 1.72 1.79 2.27 0.33
Weighted average
ordinary shares
outstanding
- Basic 33,339,364 33,489,695 33,574,513 33,574,513
- Diluted 34,648,516 33,957,107 34,973,103 34,973,103
* Share-based
compensation
charges included
are as follows:
Product
development 7,843,570 7,242,840 7,279,340 1,065,758
Sales and
marketing 4,516,199 4,025,165 4,040,372 591,545
General and
administrative 18,923,915 15,706,497 15,661,986 2,293,049
** It reflects implementation of SFAS No.160, Noncontrolling Interests in
Consolidated Financial Statements-an amendment of ARB No.51.
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Quarter Ended June 30, 2009
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Result Revenue sation Revenue Result Revenue
Product
Development (76,285,782) 16% 7,279,340 2% (69,006,442) 14%
Sales and
marketing (82,817,192) 17% 4,040,372 1% (78,776,820) 17%
General and
administrative (45,444,456) 10% 15,661,986 3% (29,782,470) 6%
Total operating
expenses (204,547,430) 43% 26,981,698 6% (177,565,732) 37%
Income from
operations 163,678,034 34% 26,981,698 6% 190,659,732 40%
Net income
attributable
to Ctrip's
shareholders 158,858,808 33% 26,981,698 6% 185,840,506 39%
Diluted earnings
per ordinary
share (RMB) 4.54 0.77 5.31
Diluted earnings
per ADS (RMB) 2.27 0.39 2.66
Diluted earnings
per ADS (USD) 0.33 0.06 0.39
Quarter Ended March 31, 2009
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Result Revenue sation Revenue Result Revenue
Product
development (63,322,718) 16% 7,242,840 2% (56,079,878) 14%
Sales and
marketing (70,724,071) 18% 4,025,165 1% (66,698,906) 17%
General and
administrative (41,321,278) 10% 15,706,497 4% (25,614,781) 6%
Total operating
expenses (175,368,067) 44% 26,974,502 7% (148,393,565) 37%
Income from
operations 135,238,905 34% 26,974,502 7% 162,213,407 40%
Net income
attributable
to Ctrip's
shareholders 121,392,280 30% 26,974,502 7% 148,366,782 37%
Diluted earnings
per ordinary
share (RMB) 3.57 0.79 4.37
Diluted earnings
per ADS (RMB) 1.79 0.40 2.18
Diluted earnings
per ADS (USD) 0.26 0.06 0.32
Quarter Ended June 30, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Result Revenue sation Revenue Result Revenue
Product
development (56,890,322) 15% 7,843,570 2% (49,046,752) 13%
Sales and
marketing (68,281,458) 18% 4,516,199 1% (63,765,259) 17%
General and
administrative (42,902,709) 11% 18,923,915 5% (23,978,794) 6%
Total operating
expenses (168,074,489) 45% 31,283,684 8% (136,790,805) 36%
Income from
operations 127,297,423 34% 31,283,684 8% 158,581,107 42%
Net income
attributable
to Ctrip's
shareholders 119,315,541 32% 31,283,684 8% 150,599,225 40%
Diluted earnings
per ordinary
share (RMB) 3.44 0.90 4.35
Diluted earnings
per ADS (RMB) 1.72 0.45 2.17
Diluted earnings per
ADS (USD) 0.25 0.07 0.32
Notes for all the financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based
on the noon buying rate of USD1.00=RMB6.8302 on June 30, 2009 in
The City of New York for cable transfers of RMB as certified for
customs purposes by the Federal Reserve Bank of New York.
