Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the Month of February 2009
Commission File Number: 000-50984
eLong, Inc.
(Exact Name of Registrant as Specified in its Charter)
Block B, Xingke Plaza Building
10 Middle Jiuxianqiao Road
Chaoyang District
Beijing 100016, Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F þ. Form 40-F o.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
o No þ
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted
solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
o No þ
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted
to furnish a report or other document that the registrant foreign private issuer must furnish and
make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled
or legally organized (the registrants home country), or under the rules of the home country
exchange on which the registrants securities are traded, as long as the report or other document
is not a press release, is not required to be and has not been distributed to the registrants
security holders, and, if discussing a material event, has already been the subject of a Form 6-K
submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ.
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-
On February 26, 2009 (Beijing time), eLong, Inc. (the Company) issued a press release
regarding its fourth quarter 2008 and full year 2008 unaudited financial results. The Companys
press release is furnished as Exhibit 99.1. In addition, on February 26, 2009 (Beijing
time), the Companys management team hosted a conference call to discuss the press release.
The information herein and in the press releases is intended to be furnished and shall not be
deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange
Act) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except
as expressly set forth by specific reference in such filing.
Any statements contained in this document and any exhibits hereto concerning eLongs future
business, operating results and financial condition are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of
1995. Words such as anticipate, believe, estimate, expect, forecast, intend, may,
plan, project, predict, should and will and similar expressions as they related to the
Company are intended to identify such forward-looking statements. These forward looking statements
are based upon managements current views and expectations with respect to future events and are
not a guarantee of future performance. Furthermore, these statements are, by their nature, subject
to a number of risks and uncertainties that could cause actual performance and results to differ
materially from those discussed in the forward-looking statements as a result of a number of
factors. Factors that could affect the Companys actual results and cause actual results to differ
materially from those included in any forward-looking statement include, but are not limited to,
eLongs operating losses, declines or disruptions in the travel industry, the international
financial crisis, slowdown in the PRC economy, the recurrence of SARS, an outbreak of bird flu or
other disease, eLongs reliance on having good relationships with hotel suppliers and airline
ticket suppliers, our reliance on the Travelsky GDS system for our air business, the possibility
that eLong will be unable to continue timely compliance with Section 404 of the Sarbanes-Oxley Act
of 2002, the risk that eLong will not be successful in competing against new and existing
competitors, risks associated with Expedia, Inc.s (Nasdaq: EXPE) majority ownership interest in
eLong and the integration of eLongs business with that of Expedias, fluctuations in the value of
the Chinese currency, changes in eLongs management team and other key personnel, changes in
third-party distribution partner relationships and other risks outlined in eLongs filings with the
U.S. Securities and Exchange Commission, including eLongs Annual Report on Form 20-F for the
fiscal year ended December 31, 2007. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of their dates. eLong is not under any obligation
and does not intend to publicly update or review any of these forward-looking statements, whether
as a result of new information, future events or otherwise.
Exhibits.
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99.1
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Press Release issued by the Company on February 26, 2009 (Beijing Time): eLong, Inc. Reports Fourth Quarter 2008 and Full Year 2008 Unaudited Financial Results. |
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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DATED: February 26, 2009 |
ELONG, INC.
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By: |
/s/ Chris Chan
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Name: |
Chris Chan |
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Title: |
Chief Financial Officer |
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-3-
Exhibit 99.1
eLong, Inc. Reports Fourth Quarter and Full Year 2008
Unaudited Financial Results
BEIJING, China February 26, 2009 eLong, Inc. (Nasdaq: LONG), a leading online travel service
provider in China, today reported unaudited financial results for the fourth quarter and full year
ended December 31, 2008.
Highlights Fourth Quarter 2008
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Total gross revenues for the fourth quarter increased 4%
year-on-year to RMB91.0 million and net revenues increased 4%
year-on-year to RMB85.7 million. |
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Travel revenues before business tax and surcharges comprised of
hotel, air and other travel product and service revenues increased
3% in the fourth quarter year-on-year to RMB87.3 million. |
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Travel revenues before business tax and surcharges by product were as follows (figures in RMB
000s; some numbers may not add due to rounding): |
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% |
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% |
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Y/Y |
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Q4 2008 |
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Total |
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Q4 2007 |
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Total |
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Growth |
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Hotel commissions |
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67,913 |
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78 |
% |
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67,345 |
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80 |
% |
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1 |
% |
Air ticketing
commissions |
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19,316 |
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22 |
% |
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15,971 |
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19 |
% |
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21 |
% |
Other travel revenue |
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74 |
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1,242 |
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1 |
% |
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-94 |
% |
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Total travel revenue |
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87,303 |
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100 |
% |
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84,558 |
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100 |
% |
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3 |
% |
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Operating loss in the fourth quarter was RMB10.3 million
compared to operating income of RMB2.1 million in the prior
year period, driven primarily by greater sales and
marketing expenses. |
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Net loss from continuing operations in the fourth quarter
decreased by RMB7.4 million year-on-year to RMB8.2 million,
driven primarily by a RMB28.9 million decrease in foreign
currency exchange losses, partially offset by increased
sales and marketing, and a decrease of RMB7.0 million in
interest income. |
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Cash, cash equivalents and short term investments as of
December 31, 2008 were RMB957.4 million (USD$140.3
million). Short term investments of RMB635.8 million
(USD$93.2 million) consisting of time deposits of six or
nine months duration held in commercial banks located
outside mainland China. |
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From the commencement of the Companys share buyback
program in March 2008 through December 31, 2008, the
Company repurchased 2,000,000 ADSs at a cost of USD$15.0
million. The Company does not intend to make further
repurchases at this time. |
Highlights Full Year 2008
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Total gross revenues in 2008 increased 10% year-on-year to
RMB348.4 million and net revenues increased 10%
year-on-year to RMB327.3 million. |
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Travel revenues before business tax and surcharges
comprised of hotel, air and other travel product and
service revenues increased 9% in 2008 to RMB331.9 million. |
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Travel revenues before business tax and surcharges by product were as follows (figures in RMB 000s; some numbers may not add due to rounding): |
-4-
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% |
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% |
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Y/Y |
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2008 |
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Total |
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2007 |
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Total |
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Growth |
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Hotel commissions |
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253,458 |
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77 |
% |
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240,803 |
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79 |
% |
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5 |
% |
Air ticketing
commissions |
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77,205 |
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23 |
% |
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57,456 |
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19 |
% |
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34 |
% |
Other travel revenue |
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1,284 |
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5,588 |
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2 |
% |
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-77 |
% |
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Total travel revenue |
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331,947 |
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100 |
% |
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303,847 |
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100 |
% |
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9 |
% |
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Operating loss increased year-on-year by RMB27.1 million to
RMB41.7 million in 2008, driven primarily by greater sales and
marketing expenses, and to a lesser extent by increased service
development expense. |
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Net loss from continuing operations increased year-on-year by
RMB50.9 million to RMB76.6 million in 2008, driven primarily by
greater sales and marketing expenses and a RMB26.5 million
decrease in interest income, partially offset by a RMB4.8 million
decrease in foreign currency exchange losses. |
In 2008, we have fixed the fundamentals of the Company and established our core competencies in
our on-line hotel and air businesses. said Guangfu Cui, Chief Executive Officer of eLong. In
2009, our goal is to demonstrate our competitiveness in the marketplace.
In 2009, while cognizant of the uncertain economic climate, we will continue to make prudent
investments in information technology and marketing to position the company for long term success.
said Chris Chan, Chief Financial Officer of eLong. At the same time, we will take a disciplined
approach to our spending and streamline our general and administrative and other costs.
Mr. Cui also stated, We are aware of the recent Schedule 13D filing by Oak Pacific Interactive (or
OPI) which stated that OPI had acquired approximately 5 million of our ordinary shares. We have
had preliminary discussions with OPI relating to potential commercial arrangements, and welcome the
interest and support of all our shareholders. We remain confident in the long term potential of
the Chinese on-line travel market.
Business Results
Hotel
Hotel commissions increased 1% for the fourth quarter of 2008 compared to the prior year quarter,
primarily due to higher volume, which was partially offset by lower commission per room night. Room
nights booked through eLong increased 3% year-on-year to 1,052,000, while commission per room night
decreased to RMB65 from RMB66 in the prior year quarter.
Hotel commissions for full year 2008 increased 5% compared to 2007, primarily due to higher volume.
Room nights booked through eLong in 2008 increased 6% to 3,945,000, while commission per room night
of RMB64 declined RMB0.7 compared to 2007.
Air
Air ticketing commissions increased 21% for the fourth quarter of 2008 compared to the prior year
quarter, driven by a 24% year-on-year increase in air segments to 463,000, and an increase of 11
basis points in the average percent commission to 5.7%, partially offset by a decrease of 5% in the
average ticket price to RMB734 compared to the prior year quarter.
Air ticketing commissions for full year 2008 increased 34% compared to 2007 primarily driven by a
26% increase in air segments to 1,788,000, and an increase of 57 basis points in the average
percent commission to 5.6%, partially offset by a decrease of 4% in the average ticket price to
RMB765.
-5-
Profitability
Gross margin in the fourth quarter of 2008 and full year 2008 was 70% compared to 72% in the fourth
quarter and full year 2007, driven primarily by the higher growth of lower margin air revenue
relative to hotel revenue.
Operating expenses for the fourth quarter of 2008 and 2007 were as follows (figures in RMB 000s;
some numbers may not add due to rounding):
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% Net |
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% Net |
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Y/Y |
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Q4 2008 |
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Revenue |
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Q4 2007 |
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Revenue |
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Growth |
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Service development |
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12,401 |
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14 |
% |
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13,554 |
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16 |
% |
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-9 |
% |
Sales and marketing |
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45,100 |
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53 |
% |
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33,783 |
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41 |
% |
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33 |
% |
General and
administrative |
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12,032 |
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14 |
% |
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9,000 |
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11 |
% |
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34 |
% |
Amortization of
intangibles |
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197 |
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265 |
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-26 |
% |
Write-down of property
and equipment and
intangibles |
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753 |
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1 |
% |
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513 |
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1 |
% |
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47 |
% |
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Total operating expenses |
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70,483 |
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82 |
% |
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57,115 |
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69 |
% |
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23 |
% |
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Operating expenses for full year 2008 and 2007 were as follows (figures in RMB 000s; some numbers
may not add due to rounding):
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% Net |
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% Net |
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Y/Y |
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2008 |
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Revenue |
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2007 |
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Revenue |
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Growth |
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Service development |
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52,584 |
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16 |
% |
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48,602 |
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16 |
% |
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8 |
% |
Sales and marketing |
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163,528 |
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50 |
% |
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126,971 |
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43 |
% |
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29 |
% |
General and
administrative |
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53,652 |
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16 |
% |
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52,006 |
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17 |
% |
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3 |
% |
Amortization of
intangibles |
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849 |
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1,060 |
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-20 |
% |
Write-down of property
and equipment and
intangibles |
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1,385 |
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1 |
% |
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1,039 |
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33 |
% |
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Total operating expenses |
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271,998 |
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83 |
% |
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229,678 |
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76 |
% |
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18 |
% |
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Total operating expenses increased 23% for the fourth quarter of 2008 compared to the fourth
quarter of 2007. Operating expenses were 82% of net revenues, an increase of 13 percentage points
compared to the prior year quarter.
Total operating expenses increased 18% for full year 2008 compared to 2007. Operating expenses were
83% of net revenues, an increase of 7 percentage points compared to 2007.
Service development expense is composed of expenses related to technology and our product
offerings, including our website, platforms and other related systems development. Service
development expense decreased 9% in the fourth quarter 2008 compared to the prior year quarter,
mainly driven by decreases in expensed information technology labor costs and outside service fees.
In the fourth quarter 2008, service development expense decreased by 2 percentage points to 14% of
net revenues compared to 16% in the fourth quarter of 2007.
Full year 2008 service development expense increased 8% over full year 2007 service development
expense, and was unchanged as a percentage of net revenues in 2008 compared to 2007.
-6-
Sales and marketing expenses for the fourth quarter 2008 increased 33% over the prior year quarter,
mainly driven by higher sales commissions, increased loyalty point awards and higher online
marketing expenses. Sales and marketing expenses increased by 12 percentage points to 53% of net
revenues in the fourth quarter 2008 compared to the same quarter of the prior year.
Sales and marketing expenses for full year 2008 increased 29% over full year 2007, and increased by
7 percentage points to 50% of net revenues when compared to 2007. The increase was primarily driven
by increased sales commissions and increased marketing and promotion.
General and administrative expenses for the fourth quarter 2008 increased 34% over the prior year
quarter, mainly driven by an increase in professional fees and restructuring charges. General and
administrative expenses as a percentage of net revenues increased by 3 percentage points
year-on-year to 14% in the fourth quarter of 2008.
General and administrative expenses for full year 2008 increased 3% over full year 2007, primarily
due to increased employee compensation. General and administrative expenses as a percentage of net
revenues decreased by 1 percentage point to 16% in the full year 2008.
Other income, which represents interest income, foreign exchange gains/losses and other
income/expense, was RMB8.0 million in the fourth quarter of 2008, due to interest income of RMB6.2
million in the fourth quarter of 2008 and a foreign currency exchange gain of RMB1.7 million
resulting from the depreciation of the Renminbi against the US dollar during the quarter.
Other loss for full year 2008 was RMB31.9 million, primarily due to a foreign exchange loss of
RMB61.1 million resulting from the appreciation of the Renminbi during the year, partially offset
by interest income of RMB29.0 million for full year 2008.
Net loss for the fourth quarter 2008 decreased by RMB7.4 million over the prior year quarter to
RMB8.2 million.
Net loss for full year 2008 increased by RMB51.0 million to RMB76.6 million.
Basic and diluted loss per ADS for the fourth quarter of 2008 was RMB0.34 compared to basic and
diluted loss per ADS of RMB0.62 in the prior year quarter.
Basic and diluted loss per ADS for full year 2008 was RMB3.08 compared to basic and diluted loss
per ADS of RMB1.02 in full year 2007.
Business Outlook
eLong expects net revenues, net of business tax and surcharges, for the first quarter of 2009 to be
within the range of RMB74 million to RMB82 million, equal to a decline of 4% to an increase of 7%
compared to the first quarter of 2008.
Notes to the Unaudited Interim Consolidated Financial Statements
To supplement the financial measures calculated in accordance with generally accepted accounting
principals in the United States, or GAAP, this press release includes certain non-GAAP financial
measures including basic loss per ADS, diluted loss per ADS, share-based compensation charges and
unrealized foreign exchange losses/(gains). The Company believes these non-GAAP financial measures
are important to help investors understand the Companys current financial performance and future
prospects and compare business trends among different reporting periods on a consistent basis.
These non-GAAP financial measures should be considered in addition to financial measures presented
in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in
accordance with GAAP.
-7-
Safe Harbor Statement
It is currently expected that the Business Outlook will not be updated until the release of eLongs
next quarterly earnings announcement; however, eLong reserves the right to update its Business
Outlook at any time for any reason.
Statements in this press release concerning eLongs future business, operating results and
financial condition are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform Act of 1995. Words such as
anticipate, believe, estimate, expect, forecast, intend, may, plan, project,
predict, should and will and similar expressions as they related to the Company are intended
to identify such forward-looking statements, but are not the exclusive means of doing so. These
forward looking statements are based upon managements current views and expectations with respect
to future events and are not a guarantee of future performance. Furthermore, these statements are,
by their nature, subject to a number of risks and uncertainties that could cause actual performance
and results to differ materially from those discussed in the forward-looking statements as a result
of a number of factors. Factors that could affect the Companys actual results and cause actual
results to differ materially from those included in any forward-looking statement include, but are
not limited to, eLongs operating losses, declines or disruptions in the travel industry, the
international financial crisis, slowdown in the PRC economy, the recurrence of SARS, an outbreak of
bird flu or other disease, eLongs reliance on having good relationships with hotel suppliers and
airline ticket suppliers, our reliance on the Travelsky GDS system for our air business, the
possibility that eLong will be unable to continue timely compliance with Section 404 of the
Sarbanes-Oxley Act of 2002, the risk that eLong will not be successful in competing against new and
existing competitors, risks associated with Expedia, Inc.s (Nasdaq: EXPE) majority ownership
interest in eLong and the integration of eLongs business with that of Expedias, fluctuations in
the value of the Chinese currency, changes in eLongs management team and other key personnel,
changes in fourth-party distribution partner relationships and other risks outlined in eLongs
filings with the U.S. Securities and Exchange Commission (or SEC), including eLongs Annual Report
on Form 20-F for the fiscal year ended December 31, 2007. Readers are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of their dates.
Conference Call
eLong will host a conference call to discuss its fourth quarter 2008 earnings on February 26, 2009
at 8:00 AM Beijing time (February 25, 2009, 7:00 PM EST). The management team will be on the call
to discuss the quarterly results and to answer questions. The toll-free number for U.S.
participants is +1-800-365-8460. The dial-in number for Hong Kong participants is +852-2258-4000.
International participants can dial +1-210-795-0492. Pass code: eLong.
A replay of the call will be available for one day between 8:30 pm Eastern Time on February 25,
2009 and 8:30 pm Eastern Time on February 26, 2009. The toll-free number for U.S. callers is
+1-888-485-2359; the Hong Kong dial in number is +852-2802-5151, and the dial-in number for
international callers is +1-203-369-4581. The pass code for the replay is 753900.
Additionally, a live and archived web cast of this call will be available on the Investor Relations
section of the eLong web site at http://www.elong.net/AboutUs/conference.html for three months.
-8-
About eLong, Inc.
eLong, Inc. (NASDAQ: LONG) is a leading online travel company in China. Headquartered in Beijing,
eLong has a national presence across China. eLong uses web-based distribution technologies and a
24-hour call center to provide consumers with access to travel reservation services. Aiming to
enrich peoples lives through the freedom of independent travel, eLong empowers consumers to make
informed decisions such as maps, virtual tours and user ratings. eLong has the capacity to fulfill
air ticket reservations in over 80 major cities across China. In addition to a selection of more
than 7,000 thousand hotels in China, eLong offers consumers the ability to make bookings at
international hotels in more than 100 countries worldwide.
eLong operates websites including http://www.elong.com and http://www.elong.net.
For further information:
eLong, Inc.
Investor Relations
ir@corp.elong.com
+86-10-6436-7570
-9-
eLong, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
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Three Months Ended |
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Year Ended |
|
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Dec. 31, |
|
|
Dec. 31, |
|
|
Dec. 31, |
|
|
Dec. 31, |
|
|
Dec. 31, |
|
|
|
2007 |
|
|
2008 |
|
|
2008 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2008 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel commissions |
|
|
67,345 |
|
|
|
65,152 |
|
|
|
67,913 |
|
|
|
9,954 |
|
|
|
240,803 |
|
|
|
253,458 |
|
|
|
37,150 |
|
Air ticketing commissions |
|
|
15,971 |
|
|
|
19,929 |
|
|
|
19,316 |
|
|
|
2,831 |
|
|
|
57,456 |
|
|
|
77,205 |
|
|
|
11,317 |
|
Other travel revenue |
|
|
1,242 |
|
|
|
306 |
|
|
|
74 |
|
|
|
11 |
|
|
|
5,588 |
|
|
|
1,284 |
|
|
|
188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travel |
|
|
84,558 |
|
|
|
85,387 |
|
|
|
87,303 |
|
|
|
12,796 |
|
|
|
303,847 |
|
|
|
331,947 |
|
|
|
48,655 |
|
Other |
|
|
3,264 |
|
|
|
4,603 |
|
|
|
3,699 |
|
|
|
542 |
|
|
|
11,550 |
|
|
|
16,479 |
|
|
|
2,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenues |
|
|
87,822 |
|
|
|
89,990 |
|
|
|
91,002 |
|
|
|
13,338 |
|
|
|
315,397 |
|
|
|
348,426 |
|
|
|
51,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business tax and surcharges |
|
|
(5,333 |
) |
|
|
(5,887 |
) |
|
|
(5,302 |
) |
|
|
(777 |
) |
|
|
(17,810 |
) |
|
|
(21,113 |
) |
|
|
(3,095 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
82,489 |
|
|
|
84,103 |
|
|
|
85,700 |
|
|
|
12,561 |
|
|
|
297,587 |
|
|
|
327,313 |
|
|
|
47,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
(23,288 |
) |
|
|
(24,628 |
) |
|
|
(25,473 |
) |
|
|
(3,733 |
) |
|
|
(82,498 |
) |
|
|
(96,996 |
) |
|
|
(14,217 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
59,201 |
|
|
|
59,475 |
|
|
|
60,227 |
|
|
|
8,828 |
|
|
|
215,089 |
|
|
|
230,317 |
|
|
|
33,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service development |
|
|
(13,554 |
) |
|
|
(14,155 |
) |
|
|
(12,401 |
) |
|
|
(1,818 |
) |
|
|
(48,602 |
) |
|
|
(52,584 |
) |
|
|
(7,707 |
) |
Sales and marketing |
|
|
(33,783 |
) |
|
|
(50,654 |
) |
|
|
(45,100 |
) |
|
|
(6,610 |
) |
|
|
(126,971 |
) |
|
|
(163,528 |
) |
|
|
(23,969 |
) |
General and administrative |
|
|
(9,000 |
) |
|
|
(13,849 |
) |
|
|
(12,032 |
) |
|
|
(1,764 |
) |
|
|
(52,006 |
) |
|
|
(53,652 |
) |
|
|
(7,864 |
) |
Amortization of intangibles |
|
|
(265 |
) |
|
|
(217 |
) |
|
|
(197 |
) |
|
|
(29 |
) |
|
|
(1,060 |
) |
|
|
(849 |
) |
|
|
(124 |
) |
Write-down of property and
equipment and intangibles |
|
|
(513 |
) |
|
|
(510 |
) |
|
|
(753 |
) |
|
|
(110 |
) |
|
|
(1,039 |
) |
|
|
(1,385 |
) |
|
|
(203 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
(57,115 |
) |
|
|
(79,385 |
) |
|
|
(70,483 |
) |
|
|
(10,331 |
) |
|
|
(229,678 |
) |
|
|
(271,998 |
) |
|
|
(39,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from operations |
|
|
2,086 |
|
|
|
(19,910 |
) |
|
|
(10,256 |
) |
|
|
(1,503 |
) |
|
|
(14,589 |
) |
|
|
(41,681 |
) |
|
|
(6,109 |
) |
Other income(loss) |
|
|
(14,548 |
) |
|
|
1,402 |
|
|
|
7,995 |
|
|
|
1,172 |
|
|
|
(10,217 |
) |
|
|
(31,918 |
) |
|
|
(4,679 |
) |
Loss from continuing
operations before income tax
expense |
|
|
(12,462 |
) |
|
|
(18,508 |
) |
|
|
(2,261 |
) |
|
|
(331 |
) |
|
|
(24,806 |
) |
|
|
(73,599 |
) |
|
|
(10,788 |
) |
Income tax benefit(expense) |
|
|
(3,127 |
) |
|
|
2,963 |
|
|
|
(5,940 |
) |
|
|
(871 |
) |
|
|
(885 |
) |
|
|
(2,994 |
) |
|
|
(439 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations |
|
|
(15,589 |
) |
|
|
(15,545 |
) |
|
|
(8,201 |
) |
|
|
(1,202 |
) |
|
|
(25,691 |
) |
|
|
(76,593 |
) |
|
|
(11,227 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112 |
|
|
|
|
|
|
|
|
|
Income tax expense of
discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
Total discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(15,589 |
) |
|
|
(15,545 |
) |
|
|
(8,201 |
) |
|
|
(1,202 |
) |
|
|
(25,587 |
) |
|
|
(76,593 |
) |
|
|
(11,227 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
|
(0.31 |
) |
|
|
(0.31 |
) |
|
|
(0.17 |
) |
|
|
(0.025 |
) |
|
|
(0.51 |
) |
|
|
(1.54 |
) |
|
|
(0.226 |
) |
Diluted loss per share |
|
|
(0.31 |
) |
|
|
(0.31 |
) |
|
|
(0.17 |
) |
|
|
(0.025 |
) |
|
|
(0.51 |
) |
|
|
(1.54 |
) |
|
|
(0.226 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per ADS |
|
|
(0.62 |
) |
|
|
(0.62 |
) |
|
|
(0.34 |
) |
|
|
(0.050 |
) |
|
|
(1.02 |
) |
|
|
(3.08 |
) |
|
|
(0.452 |
) |
Diluted loss per ADS |
|
|
(0.62 |
) |
|
|
(0.62 |
) |
|
|
(0.34 |
) |
|
|
(0.050 |
) |
|
|
(1.02 |
) |
|
|
(3.08 |
) |
|
|
(0.452 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing
basic net loss per share |
|
|
50,846 |
|
|
|
49,610 |
|
|
|
48,076 |
|
|
|
48,076 |
|
|
|
50,758 |
|
|
|
49,784 |
|
|
|
49,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing
diluted net loss per share |
|
|
50,846 |
|
|
|
49,610 |
|
|
|
48,076 |
|
|
|
48,076 |
|
|
|
50,758 |
|
|
|
49,784 |
|
|
|
49,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 1ADS = 2 shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
charges included are as
follows: |
|
|
(1,538 |
) |
|
|
2,428 |
|
|
|
523 |
|
|
|
76 |
|
|
|
6,002 |
|
|
|
7,124 |
|
|
|
1,045 |
|
Cost of services |
|
|
72 |
|
|
|
179 |
|
|
|
(79 |
) |
|
|
(12 |
) |
|
|
211 |
|
|
|
325 |
|
|
|
48 |
|
Service development |
|
|
838 |
|
|
|
684 |
|
|
|
37 |
|
|
|
5 |
|
|
|
2,984 |
|
|
|
2,320 |
|
|
|
340 |
|
Sales and marketing |
|
|
42 |
|
|
|
338 |
|
|
|
(151 |
) |
|
|
(22 |
) |
|
|
680 |
|
|
|
972 |
|
|
|
142 |
|
General and administrative |
|
|
(2,490 |
) |
|
|
1,227 |
|
|
|
716 |
|
|
|
105 |
|
|
|
2,127 |
|
|
|
3,507 |
|
|
|
515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Un-realized foreign exchange
losses/(gains) |
|
|
27,188 |
|
|
|
4,996 |
|
|
|
(1,723 |
) |
|
|
(253 |
) |
|
|
65,918 |
|
|
|
61,081 |
|
|
|
8,953 |
|
Note 1: The conversions of Renminbi (RMB) into United States dollars (USD) as at the reporting dates are based on the noon buying rate of
USD1.00=RMB6.8225 on December 31, 2008, USD1.00=RMB6.7899 on September 30, 2008 and USD1.00=RMB7.2946 on December 31, 2007 in the City of New
York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve. No representation is intended to imply that the
RMB amounts could have been, or could be, converted, realized or settled into U.S.dollars at such rates on the reporting dates.
-10-
eLong, Inc.
UNAUDITED CONDENSED CONSOLIDATED SUMMARY BALANCE SHEET DATA
(IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2007 |
|
|
Dec. 31, 2008 |
|
|
Dec. 31, 2008 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents |
|
|
1,138,447 |
|
|
|
321,541 |
|
|
|
47,130 |
|
Short-term investments |
|
|
19,120 |
|
|
|
635,810 |
|
|
|
93,193 |
|
Restricted assets |
|
|
11,274 |
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
41,138 |
|
|
|
42,471 |
|
|
|
6,225 |
|
Due from related parties |
|
|
924 |
|
|
|
518 |
|
|
|
76 |
|
Prepaid expenses and other current assets |
|
|
15,645 |
|
|
|
23,660 |
|
|
|
3,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
1,226,548 |
|
|
|
1,024,000 |
|
|
|
150,092 |
|
Property and equipment, net |
|
|
43,962 |
|
|
|
52,484 |
|
|
|
7,693 |
|
Goodwill |
|
|
30,000 |
|
|
|
30,000 |
|
|
|
4,397 |
|
Intangible assets, net |
|
|
2,192 |
|
|
|
943 |
|
|
|
138 |
|
Other non-current assets |
|
|
28,966 |
|
|
|
30,538 |
|
|
|
4,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
1,331,668 |
|
|
|
1,137,965 |
|
|
|
166,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
57,957 |
|
|
|
34,146 |
|
|
|
5,005 |
|
Income taxes payable |
|
|
1,238 |
|
|
|
1,152 |
|
|
|
169 |
|
Due to related parties |
|
|
4,529 |
|
|
|
8,120 |
|
|
|
1,190 |
|
Accrued expenses and other current liabilities |
|
|
83,233 |
|
|
|
81,889 |
|
|
|
12,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
146,957 |
|
|
|
125,307 |
|
|
|
18,367 |
|
Other long-term liabilities |
|
|
|
|
|
|
477 |
|
|
|
70 |
|
Deferred income taxes |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
147,057 |
|
|
|
125,784 |
|
|
|
18,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
4,208 |
|
|
|
4,221 |
|
|
|
619 |
|
Treasury Stock |
|
|
|
|
|
|
(103,393 |
) |
|
|
(15,155 |
) |
Additional paid-in capital |
|
|
1,308,047 |
|
|
|
1,315,590 |
|
|
|
192,831 |
|
Accumulated deficit |
|
|
(127,644 |
) |
|
|
(204,237 |
) |
|
|
(29,936 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
1,184,611 |
|
|
|
1,012,181 |
|
|
|
148,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
|
1,331,668 |
|
|
|
1,137,965 |
|
|
|
166,796 |
|
|
|
|
|
|
|
|
|
|
|
-11-