SHANGHAI, May 11 /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 March 31, 2009.
Highlights for the First Quarter of 2009
-- Net revenues were RMB401 million (US$59 million) for the first quarter
of 2009, up 18% year-on-year.
-- Gross margin was 78% for the first quarter of 2009, compared to 80% in
the same period in 2008.
-- Income from operations was RMB135 million (US$20 million) for the first
quarter of 2009, up 23% year-on-year. Excluding share-based
compensation charges (non-GAAP), income from operations was RMB162
million (US$24 million), up 13% year-on-year.
-- Operating margin was 34% in the first quarter of 2009, compared to 32%
in the first 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 was RMB121 million (US$18 million) in the first quarter of
2009, up 23% year-on-year. Excluding share-based compensation charges
(non-GAAP), net income was RMB148 million (US$22 million), up 12%
year-on-year.
-- Diluted earnings per ADS were RMB1.79 (US$0.26). Excluding share-based
compensation charges (non-GAAP), diluted earnings per ADS were RMB2.18
(US$0.32).
-- Share-based compensation charges were RMB27 million (US$4 million),
accounting for 7% of the net revenues, or RMB0.4 (US$0.06) per ADS, for
the first quarter of 2009.
"I am pleased that our team delivered solid results in the first quarter despite the difficult economy," said Min Fan, Chief Executive Officer of Ctrip. "Our strong execution in operations and prudent controls on cost enabled us to achieve healthy growth in profit. While the business environment remains uncertain, we will extend our leadership in the China travel industry through excellent customer service, strategic alliance with our partners, advanced IT technologies and innovative sales and marketing channels."
First Quarter 2009 Financial Results
For the first quarter of 2009, Ctrip reported total revenues of RMB429 million (US$63 million), representing a 17% increase from the same period in 2008 and a 1% increase from the previous quarter.
Hotel reservation revenues amounted to RMB187 million (US$27 million) for the first quarter of 2009, representing a 9% increase from the same period in 2008 primarily driven by a 17% increase in hotel room reservation volume, which was partially offset by a decrease in commission per room. Hotel reservation revenues represented an 11% decrease from the previous quarter primarily due to decreased hotel booking volume during the Chinese New Year holidays.
Air-ticketing revenues for the first quarter of 2009 were RMB184 million (US$27 million), representing a 16% increase from the same period in 2008 primarily driven by a 40% increase in air-ticketing sales volume, which was partially offset by a decrease in commission per ticket. Air-ticketing revenue increased 11% from the previous quarter primarily due to increased air-ticketing volume.
Packaged-tour revenues for the first quarter of 2009 were RMB38 million (US$6 million), up 41% from the same period in 2008 and 25% from the previous quarter, primarily due to the increased leisure travel volume in the first quarter of 2009.
For the first quarter of 2009, net revenues were RMB401 million (US$59 million), an 18% increase from the same period in 2008 and a 1% increase from the previous quarter.
Gross margin was 78% in the first quarter of 2009, decreased from 80% in the same period in 2008 and increased from 77% in the previous quarter.
Product development expenses for the first quarter of 2009 increased by 18% to RMB63 million (US$9 million) from the same period in 2008 primarily due to the increased product development personnel resources. Product development expenses remained relatively consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, increasing from 13% in the same period of last year and remaining consistent with the fourth quarter of 2008.
Sales and marketing expenses for the first quarter of 2009 increased by 7% to RMB71 million (US$10 million) from the same period in 2008 primarily due to the increased sales and marketing activities and personnel resources. Sales and marketing expenses decreased 13% from the previous quarter, primarily due to the decrease in advertisement and other sales and marketing activities. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 17% of the net revenues, which was a decrease from 18% in the same period last year and 19% in the previous quarter.
General and administrative expenses for the first quarter of 2009 decreased by 3% to RMB41 million (US$6 million) from the same period in 2008 primarily due to the decrease of share-based compensation charges. General and administrative expenses remained relatively consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, which was a decrease from 7% in the same period last year and was relatively consistent with the previous quarter.
Income from operations for the first quarter of 2009 was RMB135 million (US$20 million), which represented a 23% increase from the same period in 2008 and a 16% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB162 million (US$24 million), representing a 13% increase from the same period in 2008 and a 9% increase from the pervious quarter.
Operating margin was 34% in the first quarter of 2009, compared to 32% in the first quarter of 2008 and 30% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 40% in the first quarter of 2009 compared to 42% in the first quarter of 2008 and 38% in the previous quarter.
Net income for the first quarter of 2009 was RMB121 million (US$18 million), representing a 23% increase from the same period in 2008, and remaining consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), net income was RMB148 million (US$22 million), representing a 12% increase from the same period in 2008, and a 4% decrease from the previous quarter.
The effective tax rate for the first quarter of 2009 decreased to 18%, as compared to 28% in the same period of 2008 due to the application of the High and New Technology Enterprise ("HNTE") preferential treatment to certain of Ctrip's PRC subsidiaries. The effective tax rate for the first quarter of 2009 increased from 2% in the previous quarter, primarily due to the full year benefit upon initial application of the HNTE in the fourth quarter of 2008.
Diluted earnings per ADS were RMB1.79 (US$0.26) for the first quarter of 2009. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.18 (US$0.32).
As of March 31, 2009, the balance of cash and short-term investment was RMB1.4 billion (US$202 million).
Business Outlook
For the second quarter of 2009, Ctrip expects to continue the year-on-year net revenue growth of approximately 10-15%.
Conference Call
Ctrip's management team will host a conference call at 9:00PM US Eastern Time on May 11, 2009 (or 9:00AM on May 12, 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 +1.888.679.8037, International dial-in number +1.617.213.4849; Passcode 81869608. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=P7QHGK6R4 .
A telephone replay of the call will be available after the conclusion of the conference call through May 18, 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 55282373.
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 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 SARs, avian flu or H1N1 flu (swine 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 May 11, 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.
Ctrip.com International, Ltd.
Consolidated Balance Sheet Information
December March March
31, 2008 31, 2009 31, 2009
RMB RMB USD
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash 1,069,827,364 1,264,513,770 185,062,531
Restricted cash 6,600,000 6,600,000 965,915
Short-term investment 176,585,908 108,000,000 15,805,880
Accounts receivable, net 274,302,454 332,378,582 48,643,853
Prepayments and other
current assets 95,150,506 75,415,222 11,037,074
Deferred tax assets 8,840,772 10,077,240 1,474,811
Total current assets 1,631,307,004 1,796,984,814 262,990,064
Long-term deposits 145,500,002 140,257,263 20,526,755
Land use rights 111,510,231 110,863,178 16,224,909
Property, equipment and
software 346,117,083 352,862,570 51,641,700
Investment 237,943,497 284,013,098 41,565,528
Goodwill 63,689,736 63,689,736 9,321,040
Other long-term assets 24,498,763 23,427,869 3,428,686
Total assets 2,560,566,316 2,772,098,528 405,698,682
LIABILITIES
Current liabilities:
Accounts payable 138,657,593 232,615,214 34,043,410
Salary and welfare payable 65,590,151 53,909,799 7,889,739
Taxes payable 54,745,686 76,048,087 11,129,694
Advances from customers 187,576,416 114,749,654 16,793,697
Accrued liability for
customer reward program 58,046,062 62,746,010 9,182,925
Other payables and accruals 121,421,617 110,213,125 16,129,773
Total current liabilities 626,037,525 650,281,889 95,169,238
Other long-term payables 812,500 -- --
Total liabilities 626,850,025 650,281,889 95,169,238
SHAREHOLDERS' EQUITY
Share capital 2,761,259 2,766,286 404,848
Additional paid-in capital 967,687,772 1,020,375,135 149,332,660
Statutory reserves 75,948,298 60,579,898 8,865,913
Accumulated other
comprehensive loss (175,929,389) (146,636,066) (21,460,297)
Retained Earnings 1,060,620,258 1,182,012,538 172,988,415
Noncontrolling interests* 2,628,093 2,718,848 397,905
Total shareholders' equity 1,933,716,291 2,121,816,639 310,529,444
Total liabilities and
shareholders' equity 2,560,566,316 2,772,098,528 405,698,682
* 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
March 31, December 31, March 31, March 31,
2008 2008 2009 2009
RMB RMB RMB USD
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Hotel reservation 171,191,560 210,656,475 187,312,294 27,413,294
Air-ticketing 158,541,464 165,617,198 184,494,502 27,000,908
Packaged tour 26,793,008 30,249,085 37,717,241 5,519,946
Others 10,136,005 16,222,294 19,077,054 2,791,941
Total revenues 366,662,037 422,745,052 428,601,091 62,726,089
Less: business tax
and related
surcharges (26,173,023) (26,410,272) (28,023,671) (4,101,285)
Net revenues 340,489,014 396,334,780 400,577,420 58,624,804
Cost of revenues (67,996,984) (92,537,662) (89,970,448) (13,167,242)
Gross profit 272,492,030 303,797,118 310,606,972 45,457,562
Operating expenses:
Product
development* (53,529,592) (64,126,567) (63,322,718) (9,267,327)
Sales and
marketing* (65,921,612) (81,462,069) (70,724,071) (10,350,520)
General and
administrative* (42,723,133) (41,248,253) (41,321,278) (6,047,400)
Total operating
expenses (162,174,337) (186,836,889) (175,368,067) (25,665,247)
Income from
operations 110,317,693 116,960,229 135,238,905 19,792,315
Interest income 7,458,357 6,355,910 3,363,165 492,201
Other income ** 18,823,969 88,652 9,583,089 1,402,492
Income before
income tax expense 136,600,019 123,404,791 148,185,159 21,687,008
Income tax expense (37,750,581) (1,957,339) (26,792,879) (3,921,158)
Net income 98,849,438 121,447,452 121,392,280 17,765,850
Earnings per
ordinary share
- Basic 2.98 3.63 3.62 0.53
- Diluted 2.86 3.57 3.57 0.52
Earnings per ADS
- Basic 1.49 1.82 1.81 0.27
- Diluted 1.43 1.78 1.79 0.26
Weighted average
ordinary shares
outstanding
- Basic 33,221,615 33,448,570 33,489,695 33,489,695
- Diluted 34,521,152 34,032,673 33,957,107 33,957,107
* Share-based
compensation
charges included
are as follows:
Product
development 8,102,104 8,588,988 7,242,840 1,059,995
Sales and
marketing 5,033,868 4,769,181 4,025,165 589,086
General and
administrative 20,319,682 19,134,797 15,706,497 2,298,658
** Noncontrolling interest amounts of deficit RMB90,755, RMB36,850 and
deficit RMB28,961 for the three months ended March 31, 2009, December 31,
2008 and March 31, 2008, respectively, are not presented separately in the
Consolidated Statement of Earnings due to immateriality, but are reflected
within the other income line item.
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Quarter Ended March 31, 2009
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results 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 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 December 31, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
Development (64,126,567) 16% 8,588,988 2% (55,537,579) 14%
Sales and
marketing (81,462,069) 21% 4,769,181 1% (76,692,888) 19%
General and
administrative (41,248,253) 10% 19,134,797 5% (22,113,456) 6%
Total
operating
expenses (186,836,889) 47% 32,492,966 8% (154,343,923) 39%
Income from
operations 116,960,229 30% 32,492,966 8% 149,453,195 38%
Net income 121,447,452 31% 32,492,966 8% 153,940,418 39%
Diluted
earnings per
ordinary
share (RMB) 3.57 0.95 4.52
Diluted
earnings per
ADS (RMB) 1.78 0.48 2.26
Diluted
earnings
per ADS (USD) 0.26 0.07 0.33
Quarter Ended March 31, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (53,529,592) 16% 8,102,104 2% (45,427,488) 13%
Sales and
marketing (65,921,612) 19% 5,033,868 1% (60,887,744) 18%
General and
administrative (42,723,133) 13% 20,319,682 6% (22,403,451) 7%
Total
operating
expenses (162,174,337) 48% 33,455,654 10% (128,718,683) 38%
Income from
operations 110,317,693 32% 33,455,654 10% 143,773,347 42%
Net income 98,849,438 29% 33,455,654 10% 132,305,092 39%
Diluted
earnings per
ordinary
share (RMB) 2.86 0.97 3.83
Diluted
earnings
per ADS (RMB) 1.43 0.48 1.92
Diluted
earnings per
ADS (USD) 0.20 0.07 0.27
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=RMB6.8329 on March 31, 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.
Note 2: Certain prior year amounts have been reclassified with no effect
on net income or retained earnings to conform to the 2009 financial
information presentation.
Note 3: Effective on July 31, 2007, Company changed ratio of the
American Depositary Shares ("ADSs") to ordinary shares from one (1) ADS
representing one (1) ordinary shares to two (2) ADS representing one (1)
ordinary share. The change is reflected retroactively in the numbers
for all the periods presented above.
For further information:
Jade Wei
Ctrip.com International, Ltd.
Tel: +86-21-3406-4880 x11543
Email: yuwei@ctrip.com
![A view of the Lujiazui financial center in Shanghai's Pudong New Area from the Bund. [Photo by Wang Gang/For China Daily]](https://mma.prnasia.com/media2/2409590/A_view_Lujiazui_financial_center_Shanghai_s_Pudong_New_Area_Bund.jpg?p=medium600)