ROOM ( $48-$50)P/E 181 $138.3 Million Revenue and $0.26 Adjusted EPS
Second Quarter Highlights: -- Revenue: $138.3 million --
EBITDA: $21.0 million -- Adjusted Net Income: $14.8
million -- Adjusted EPS: $0.26 per share, diluted -- 1 million hotel room nights sold in the 2nd quarter -- $2 million of hotel rooms booked in a single day (June) -- Liquidity increased to $217.5 million in cash and investments
DALLAS, Jul 23, 2001 /PRNewswire via COMTEX/ --
Financial & Operating Data
Three Months % Six Months %
6/30/01 6/30/00 Change 6/30/01 6/30/00 Change
Net Revenue
(000's) $138,302 $78,082 +77% $243,588 $133,345 +83%
Gross Profit
(000's) $42,953 $24,032 +79% $74,525 $40,792 + 83%
EBITDA (000's) $20,994 $12,921 +62% $36,816 $21,096 +75%
Adjusted Net
Income (000's) $14,764 $9,045 +63% $26,492 $14,601 +81%
Adjusted Earnings
Per Share,
Diluted $0.26 $0.16 +63% $0.46 $0.29 +59%
Net Income
(000's) $4,650 $1,750 +166% $6,496 $2,915 +123%
Earnings Per
Share, Diluted $0.08 $0.03 +167% $0.11 $0.06 +83%
Weighted Average
Shares O/S,
Diluted (000's) 57,418 55,882 +3% 57,006 50,746 +12%
Operating Data (excludes TravelNow except as noted)
Room Nights Sold,
net of
cancellations 1,030,000 586,721 +76% 1,829,000 1,015,721 +80%
Cities Served 146 60 +143% 146 60 +143%
Properties 3,374 1,925 +75% 3,374 1,925 +75%
Affiliates
(HRN + TravelNow) 20,857 10,500 +99% 20,857 10,500 +99%
Hotel Reservations Network (Nasdaq: ROOM chart, msgs), the leading provider of discount hotel rooms worldwide, today announced record results in all critical financial measurements for the second quarter ended June 30, 2001.
Net revenues increased 77% in the quarter to $138.3 million from $78.1 million a year earlier. EBITDA increased 62% to $21.0 million, while adjusted net income, which excludes certain non-cash expenses such as amortization of goodwill and non-cash marketing and distribution expenses, increased 63% to $14.8 million. Adjusted net income per share, diluted, increased by 63% to $0.26 from $0.16.
"The demand and awareness for online travel services reached a new level during the second quarter," said David Litman, Chairman and Chief Executive Officer of Hotel Reservations Network. "With our strong position as the number one source for discounted hotel rooms worldwide, we were able to take full advantage of the conditions in the general travel and lodging market. Better values and increased availability during the 2nd quarter enabled us to further exceed the expectations of our customers."
The company achieved several new records during the quarter, including the following:
-- Over 1 million net rate hotel rooms sold in a single quarter
-- Over $2 million of net rate hotel rooms booked in a single day in June
-- TravelNow net rate hotel rooms sold increased 13-fold in Q2 '01 vs.
Q2 '00
-- Nearly 21,000 affiliates under contract
"It's important to note that our solid 2nd quarter performance was accomplished in a sharply reduced business travel environment, which resulted in rapid and dramatic reductions in hotel occupancy levels and prices in several major cities" remarked Bob Diener, President of HRN. "However, HRN's primary focus as a leisure travel company allowed us to continue our rapid revenue growth even in this travel environment."
"For at least the last 20 years," Mr. Diener continued, "all of the macro travel statistics have shown consistent growth in leisure travel, year-in and year-out. During this time period, and especially since the advent of the Internet, consumers have learned to seek and expect better and better values for their leisure travel purchases. HRN's entire business has been built around this fact."
Last week, the company announced the formal launch of its Luxury Hotels Division, which is anchored by its www.allluxuryhotels.com website. In its first few weeks in operation, the division has partnered with over 600 four and five star hotels, many of which had no previous affiliation with Hotel Reservations Network. This underscores the pent-up demand among luxury hotel properties for a site devoted to this important segment.
On July 16th, HRN's majority owner USA Networks, Inc. announced an agreement to acquire a controlling interest in Expedia, Inc., an agreement to acquire 100% of National Leisure Group, and the launch of the USA Travel Channel. Commenting on the announcement, Mr. Litman said: "We are pleased to be a part of the new USA Travel Group, under which HRN and Expedia will continue to operate as separate public companies, and we look forward to new opportunities that should benefit HRN."
"At the same time," Mr. Litman continued, "HRN and Travel Now are utterly committed to supporting and expanding our business relationships with all of our nearly 21,000 existing affiliates. We will continue to focus on this large growth opportunity for HRN. Many of these affiliates have relied on HRN to help build their businesses, and we will not let them down."
HRN management will provide supporting detail of the second quarter results outlined above on a conference call today at 11:00am Eastern Time. The conference call will be webcast live on the Investor Relations section of the company's web site at www.hoteldiscount.com , and also at www.streetfusion.com . To listen to the call, log on to either web site at least 15 minutes early to register, download and install any necessary audio software. The call will also be available via telephone by dialing 703-871-3722. An audio archive of the conference call may be accessed at either web site, and is available by phone for seven days after the conference call by calling 703-925-2435 and typing in pass code #5381588.
Hotel Reservations Network, a majority-owned subsidiary of USA Networks, Inc.'s (Nasdaq: USAI chart, msgs) Interactive Group, is the number one consolidator of discount hotel accommodations worldwide, providing service through its own Web sites ( www.180096hotel.com and www.hoteldiscount.com ), www.condosaver.com , www.travelnow.com and www.allluxuryhotels.com ), more than 20,000 affiliated Web sites, and several toll-free call centers (1-800-96HOTEL). HRN provides travelers with a one-stop shopping source for hotel pricing, amenities and availability. HRN also specializes in providing travelers with accommodations for sold-out periods in major cities.
This news release contains "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. The company has based these forward-looking statements on its current expectations and projections about future events, based on the information currently available to it. The forward-looking statements include statements relating to the company's anticipated financial performance, business prospects, new developments, new strategies and similar matters. The following important factors, in addition to those described under the section "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2000 (which is available upon request from the company or on the company's websites, www.hoteldiscount.com and www.180096hotel.com , under the heading "Investor Relations") may affect the future results of the company and cause those results to differ materially from those expressed in the forward-looking statements: material adverse changes in the economic conditions in the company's markets; future regulatory actions and conditions in the company's operating areas; competition from others; product demand and market acceptance; the ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; and the ability to obtain and retain key executives and employees. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or any other reason. |
