Earnings Call Excerpt
Priceline.com (PCLN)
Q4 2005 Earnings Conference Call
February 16th 2006, 4:30 PM.
Executives:
Jeffrey Boyd, President and Chief Executive Officer
Robert Mylod, Chief Financial Officer
Analysts:
Scott Kessler, Standard and Poors
Scott Barry, CSFB
Anthony Noto, Goldman Sachs
Aaron Kessler, Piper Jaffray
Mark Mahaney, Smith Barney Citigroup
Presentation
Operator
Welcome to Priceline.com's Fourth Quarter 2005 Conference Call. Priceline.com would like to remind everyone that this call may contain forward-looking statements which are made pursuant to the Safe Harbor Provision of the Private Litigation Reform Act of 1995.
These forward-looking statements are not guaranteed of future performance and are subject to certain risks, uncertainties functions are difficult to predict therefore actual results may differ materially from those expressed, implied or forecast in any such forward-looking statements. Expression of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, for a list of factors that could cause Priceline.com's actual results to differ materially from those described in the forward-looking statements, please refer to the Safe Harbor Statements at the end of Priceline.com's press release as well as Priceline.com's most recent filings with the Securities and Exchange Commission. Unless required by law Priceline.com undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. A copy of Priceline.Com’s Earnings Press Release together with the accompanying financial and statistical supplement is available in the Investor Relations section of Priceline.Com's website, located at www.priceline.com.
Now, I would like to introduce Priceline's speakers for this afternoon, Mr. Jeff Boyd and Bob Mylod. Go ahead gentlemen and begin the conference.
Jeffrey Boyd, President and Chief Executive Officer
Thank you very much, and welcome to Priceline's fourth quarter conference call. I'm here with Priceline's Chief Financial Officer, Bob Mylod. Priceline performed at the high-end of our original expectations in the fourth quarter, due to continued strong growth in our European operations and solid domestic results. Gross bookings of $537 million were up 29%, year-over-year. Pro forma gross profit of $65.3 million, was up 27%, and pro forma net income was $11.4 million or $0.28 per share, up $0.29 over last year.
Fourth quarter results include results from bookings BV, acquired in July of last year. For the full-year, Priceline's gross bookings were 2.2 billion, an increase of 32%, and pro forma earnings per share were $1.37 an increase of 42%. Priceline's organic gross bookings growth rate, assuming acquired businesses were owned for the full period in question and excluding the retail hotel business on Orbitz for the fourth quarter, was 21%. Priceline Europe had an excellent quarter with $158 million gross bookings and an organic growth rate of 88%, accelerating from 76% in Q3, and significantly in excess of that reported by our competitors. Priceline's domestic organic growth rate was 5% in the fourth quarter broadly consistent with the trend in the second and third quarter.
Ladies and gentlemen on the phone line, if you have a question at this time, please press the ?1
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