Breaking News

Tweet TWEET

Ctrip Reports Unaudited Third Quarter 2012 Financial Results

         Ctrip Reports Unaudited Third Quarter 2012 Financial Results

PR Newswire

SHANGHAI, Nov. 5, 2012

SHANGHAI, Nov. 5, 2012 /PRNewswire/ --Ctrip.com International, Ltd. (Nasdaq:
CTRP), a leading travel service provider of hotel accommodations, airline
tickets, packaged tours and corporate travel management in China, today
announced its unaudited financial results for the quarter ended September 30,
2012.

Highlights for the Third Quarter of 2012

  oNet revenues were RMB1.17 billion (US$187 million) for the third quarter
    of 2012, up 20% year-on-year, versus our guidance of 15-20% year-on-year.
  oGross margin was 76% for the third quarter of 2012, compared to 77% in the
    same period in 2011.
  oIncome from operations was RMB190 million (US$30 million) for the third
    quarter of 2012, down 38% year-on-year. Excluding share-based compensation
    charges (non-GAAP), income from operations was RMB299 million (US$48
    million), down 24% year-on-year.
  oOperating margin was 16% for the third quarter of 2012, compared to 31% in
    the same period in 2011. Excluding share-based compensation charges
    (non-GAAP), operating margin was 25%, compared to 41% in the same period
    in 2011.
  oNet income attributable to Ctrip's shareholders was RMB194 million (US$31
    million) for the third quarter of 2012, down 40% year-on-year. Excluding
    share-based compensation charges (non-GAAP), net income attributable to
    Ctrip's shareholders was RMB302 million (US$48 million), down 27%
    year-on-year.
  oDiluted earnings per ADS were RMB1.41 (US$0.22) for the third quarter of
    2012. Excluding share-based compensation charges (non-GAAP), diluted
    earnings per ADS were RMB2.20 (US$0.35) for the third quarter of 2012.
  oShare-based compensation charges were RMB108 million (US$17 million),
    accounting for 9% of the net revenues, or RMB0.79 (US$0.13) per ADS for
    the third quarter of 2012.

"We are pleased with the solid results in the third quarter of 2012," said Min
Fan, President and Chief Executive Officer of Ctrip. "During the quarter,
Ctrip achieved many milestones toward building the leading 'one-stop travel
platform' in China by strengthening our partner relationships, upgrading the
mobile platform, and lifting the sales and marketing efforts. With Ctrip
team's strong execution, we believe Ctrip will continue enhancing the market
leadership in China."

Third Quarter 2012 Financial Results

For the third quarter of 2012, Ctrip reported total revenues of RMB1.25
billion (US$198 million), representing a 20% increase from the same period in
2011. Total revenues for the third quarter of 2012 increased by 21% from the
previous quarter.

Hotel reservation revenues amounted to RMB457 million (US$73 million) for the
third quarter of 2012, representing an 11% increase year-on-year, primarily
driven by an increase of 40% in hotel reservation volume and partially offset
by a decrease of 21% in commission per room night. The decrease of commission
per room night was primarily due to promotional activities. Hotel reservation
revenues increased by 11% quarter-on-quarter, primarily due to seasonality.

Air ticket booking revenues for the third quarter of 2012 were RMB478 million
(US$76 million), representing a 24% increase year-on-year and an 18% increase
from the previous quarter, primarily driven by an increase in air tickets
sales volume.

Packaged-tour revenues for the third quarter of 2012 were RMB224 million
(US$36 million), representing a 31% increase year-on-year due to the increase
of leisure travel volume. Packaged-tour revenues increased by 67%
quarter-on-quarter, primarily due to seasonality.

Corporate travel revenues for the third quarter of 2012 were RMB54 million
(US$9 million), representing a 25% increase year-on-year, primarily driven by
the increased corporate travel demand from business activities. Corporate
travel revenues increased by 10% quarter-on-quarter, primarily due to
seasonality.

Net revenues for the third quarter of 2012 were RMB1.17 billion (US$187
million), representing a 20% increase from the same period in 2011. Net
revenues for the third quarter of 2012 increased by 20% from the previous
quarter.

Gross margin was 76% for the third quarter of 2012, compared to 77% in the
same period in 2011 and 75% in the previous quarter.

Product development expenses for the third quarter of 2012 increased by 51% to
RMB243 million (US$39 million) from the same period in 2011, and increased by
17% from the previous quarter, primarily due to an increase in product
development personnel related expense. Excluding share-based compensation
charges (non-GAAP), product development expenses accounted for 18% of the net
revenues, increased from 14% in the same period in 2011 and remained
consistent with that in the previous quarter.

Sales and marketing expenses for the third quarter of 2012 increased by 74% to
RMB303 million (US$48 million) from the same period in 2011, and increased by
39% from the previous quarter, primarily due to an increase in sales and
marketing related activities. Excluding share-based compensation charges
(non-GAAP), sales and marketing expenses accounted for 25% of the net
revenues, increased from 17% in the same period in 2011 and increased from 21%
in the previous quarter.

General and administrative expenses for the third quarter of 2012 increased by
39% to RMB151 million (US$24 million) from the same period in 2011, primarily
due to an increase in administrative personnel, share-based compensation
charges and the incremental turnover tax due to the new value-added tax
reform. General and administrative expenses for the third quarter of 2012
increased by 9% from the previous quarter, primarily due to an increase in
administrative personnel. Excluding share-based compensation charges
(non-GAAP), general and administrative expenses accounted for 8% of the net
revenues, increased from 6% in the same period in 2011 and remained consistent
with that in the previous quarter.

Income from operations for the third quarter of 2012 was RMB190 million (US$30
million), representing a decrease of 38% from the same period in 2011 and an
increase of 13% from the previous quarter. Excluding share-based compensation
charges (non-GAAP), income from operations was RMB299 million (US$48 million),
representing a decrease of 24% from the same period in 2011 and an increase of
8% from the previous quarter.

Operating margin was 16% for the third quarter of 2012, compared to 31% in the
same period in 2011, and 17% in the previous quarter. Excluding share-based
compensation charges (non-GAAP), operating margin was 25%, decreased from 41%
in the same period in 2011 and 28% in the previous quarter.

The effective tax rate for the third quarter of 2012 was 24%, increased from
21% in the same periods of 2011, primarily due to the increase in the amount
of non tax-deductible share-based compensation as a percentage to our income
before income tax expense as a whole. The effective tax rate for the third
quarter of 2012 decreased from 45% in the previous quarter, primarily due to
the provision of withholding tax and preferential tax treatment available to
certain consolidated PRC entities in the previous quarter. In the second
quarter of 2012, we made the provision of 5% PRC withholding tax related to
the dividends that our PRC subsidiaries would pay to their direct parent,
which is our Hong Kong subsidiary to fund the share repurchase program
announced in June 2012. This was partially offset by the preferential tax
treatment of certain consolidated PRC entities.

Net income attributable to Ctrip's shareholders for the third quarter of 2012
was RMB194 million (US$31 million), representing a decrease of 40% from the
same period in 2011 and an increase of 62% from the previous quarter.
Excluding share-based compensation charges (non-GAAP), net income attributable
to Ctrip's shareholders was RMB302 million (US$48 million), representing a
decrease of 27% from the same period in 2011 and an increase of 32% from the
previous quarter.

Diluted earnings per ADS were RMB1.41 (US$0.22) for the third quarter of 2012.
Excluding share-based compensation charges (non-GAAP), diluted earnings per
ADS were RMB2.20 (US$0.35) for the third quarter of 2012.

As of September 30, 2012, the balance of cash and cash equivalents, restricted
cash and short-term investment was RMB5.4 billion (US$859 million).

Business Outlook

For the fourth quarter of 2012, the Company expects to continue the net
revenue growth year-on-year at a rate of approximately 15-20%. This forecast
reflects Ctrip's current and preliminary view, which is subject to change.

Recent Development

In September 2012, Ctrip completed the offering of US$180 million principal
amount of convertible senior notes due 2017 (the "notes"). The notes bears an
annual interest of 0.5% and may have dilutive effect on the diluted earnings
per ADS presented. As the offering was completed within a relatively short
period of time close to the end of third quarter of 2012, its impact on income
statement and diluted earnings per ADS for third quarter of 2012 was
insignificant. The offering cost of the notes will be amortized over the life
of the notes.

As of November 5, 2012, Ctrip had purchased approximately 17.2 million ADSs in
aggregate with a total consideration of US$294 million under three existing
share repurchase plans adopted in 2008, 2011 and 2012.

Conference Call

Ctrip's management team will host a conference call at 7:00PM U.S. Eastern
Time on November 5, 2012 (or 8:00AM on November 6, 2012 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 8018, International dial-in number +1 617 213 4845, Passcode 706 306 82#.
For pre-registration, please click
https://www.theconferencingservice.com/prereg/key.process?key=PQ63GVUN7 .

A telephone replay of the call will be available after the conclusion of the
conference call through November 13, 2012. 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 98014038.

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 "may," "will," "expect," "anticipate,"
"future," "intend," "plan," "believe," "estimate," "is/are likely to,"
"confident" or other 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, the
slow-down of economic growth in China and the global economic downturn,
general declines or disruptions in the travel industry, volatility in the
trading price of Ctrip's ADSs, Ctrip's reliance on its relationships and
contractual arrangements 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, failure to successfully manage current growth and potential
future growth, risks associated with any strategic investments or
acquisitions, seasonality in the travel industry in mainland China, Hong Kong,
Macau or Taiwan, failure to successfully develop Ctrip's corporate travel
business, damage to or failure of Ctrip's infrastructure and technology, loss
of services of Ctrip's key executives, inflation in China and in other
countries, risks and uncertainties associated with PRC laws and regulations
with respect to the ownership structure of Ctrip's affiliated Chinese entities
and the contractual arrangements among Ctrip, its affiliated Chinese entities
and their shareholders, 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 the date of the issuance, 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 condensed consolidated financial statements
presented in accordance with 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 ASC 718, "Compensation-Stock Compensation" for 2012 and
2011. Ctrip's management believes the non-GAAP financial measures facilitate
better understanding of operating results from quarter to quarter and provide
management with a better capability to plan and forecast future periods.

Non-GAAP information is not prepared 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 GAAP results. A limitation of using non-GAAP
financial measures is that non-GAAP measures exclude share-based compensation
charges that have been and will continue to be significant recurring expenses
in Ctrip's 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, packaged tours, and corporate travel
management in China. Ctrip aggregates hotel and flight information to enable
business and leisure travelers to make informed and cost-effective bookings.
Ctrip also books vacation packages and guided tours. In addition, Ctrip
corporate travel management services help corporate clients effectively manage
their travel requirements. Since its inception in 1999, Ctrip has experienced
substantial growth and become one of the best-known travel brands in China.

For further information, please contact:

Investor Relations
Ctrip.com International, Ltd.
Tel: (+86) 21 3406 4880 X 12928
Email: iremail@ctrip.com



Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Balance Sheets
                                             December31,2011   September30,2012   September30,2012
                                             RMB                 RMB                  USD
                                             (unaudited)         (unaudited)          (unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents                   3,503,428,418       2,849,990,911        453,473,605
 Restricted cash                             211,636,294         1,299,837,969        206,822,487
 Short-term investment                      1,288,471,562       1,251,016,553        199,054,314
 Accounts receivable, net                    789,036,329         1,050,091,257        167,084,276
 Prepayments and other current assets        566,187,711         931,971,381          148,289,744
 Deferred tax assets, current                39,782,201          53,488,098           8,510,708
 Total current assets                        6,398,542,515       7,436,396,169        1,183,235,134
 Long-term deposits and prepayments     155,360,492         387,369,609          61,635,948
 Land use rights                             113,460,899         111,373,523          17,721,093
 Property, equipment and software            683,903,870         736,282,355          117,152,870
 Investment                                  1,305,145,043       1,435,620,564        228,427,406
 Goodwill                                    798,601,767         801,585,341          127,543,492
 Intangible assets                           306,420,192         323,336,669          51,447,408
 Total assets                                9,761,434,778       11,231,964,230       1,787,163,351
 LIABILITIES
 Current liabilities:
 Short-term borrowings                       -                   947,080,758          150,693,858
 Accounts payable                            763,256,074         965,431,397          153,613,702
 Salary and welfare payable                  145,524,036         173,590,307          27,620,657
 Taxes payable                               220,604,123         207,172,862          32,964,114
 Advances from customers                     1,090,852,066       1,223,772,416        194,719,389
 Accrued liability for customer reward       161,838,531         201,193,567          32,012,724
 program
 Other payables and accruals                 185,985,423         445,032,669          70,810,952
 Total current liabilities                   2,568,060,253       4,163,273,976        662,435,396
 Deferred tax liabilities, non-current       48,308,692          53,470,352           8,507,884
 Long-term Debt                              -                   1,131,264,000        180,000,000
 Total liabilities                           2,616,368,945       5,348,008,328        850,943,280
 SHAREHOLDERS' EQUITY
 Share capital                               2,939,527           2,969,092            472,424
 Additional paid-in capital                  3,465,924,424       3,262,784,016        519,154,789
 Statutory reserves                          98,049,668          98,049,668           15,601,080
 Accumulated other comprehensive loss        (172,466,277)       (64,159,376)         (10,208,658)
 Retained Earnings                           3,806,608,747       4,328,462,585        688,719,225
 Treasury stock                             (158,761,225)       (1,803,696,281)      (286,993,426)
 Total Ctrip's shareholders' equity          7,042,294,864       5,824,409,704        926,745,434
 Noncontrolling interests                    102,770,969         59,546,198           9,474,637
 Total shareholders' equity                  7,145,065,833       5,883,955,902        936,220,071
 Totalliabilitiesandshareholders'equity  9,761,434,778       11,231,964,230       1,787,163,351

 

Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
                                                        Quarter Ended        QuarterEnded   Quarter Ended        Quarter Ended
                                                        September30,2011   June30,2012   September30,2012   September30,2012
                                                        RMB                  RMB             RMB                  USD
                                                        (unaudited)          (unaudited)     (unaudited)          (unaudited)
 Revenues:
 Hotel reservation                                      410,428,429          410,370,431     457,041,173          72,721,673
 Air-ticketing                                          385,068,223          404,268,226     478,367,942          76,115,062
 Packaged tour                                          171,367,702          133,776,555     223,779,798          35,606,511
 Corporate travel                                       43,367,133           49,348,796      54,073,606           8,603,871
 Others                                                 28,982,115           33,187,613      34,085,035           5,423,408
 Total revenues                                         1,039,213,602        1,030,951,621   1,247,347,554        198,470,525
 Less: business tax and related surcharges              (64,512,791)         (57,326,573)    (74,345,010)         (11,829,336)
 Net revenues                                           974,700,811          973,625,048     1,173,002,544        186,641,189
 Cost of revenues                                       (226,126,062)        (241,168,887)   (285,960,720)        (45,500,369)
 Gross profit                                           748,574,749          732,456,161     887,041,824          141,140,820
 Operating expenses:
 Product development *                                  (161,579,311)        (208,344,014)   (243,244,924)        (38,703,686)
 Sales and marketing *                                  (173,855,350)        (217,235,897)   (302,596,451)        (48,147,348)
 General and administrative *                           (108,847,827)        (138,826,378)   (151,107,619)        (24,043,346)
 Total operating expenses                               (444,282,488)        (564,406,289)   (696,948,994)        (110,894,380)
 Income from operations                                 304,292,261          168,049,872     190,092,830          30,246,440
 Interest income                                        31,233,511           31,865,564      54,099,884           8,608,052
 Other income                                           54,347,195           56,366,412      6,104,967            971,386
 Incomebeforeincometaxexpenseandequityinincome  389,872,967          256,281,848     250,297,681          39,825,878
 Income tax expense                                     (82,055,004)         (116,557,710)   (59,394,448)         (9,450,491)
 Equity in income/(loss) of affiliates                  20,372,237           (18,189,504)    4,792,055            762,483
 Net income                                             328,190,200          121,534,634     195,695,288          31,137,870
 Less: Net income attributable to noncontrolling        (2,909,902)          (1,864,935)     (1,878,491)          (298,894)
 interests
 NetincomeattributabletoCtrip'sshareholders        325,280,298          119,669,699     193,816,797          30,838,976
 Comprehensive income                                   146,006,823          137,792,479     365,152,591          58,100,909
 Earnings per ordinary share
 - Basic                                                9.02                 3.37            5.82                 0.93
 - Diluted                                              8.54                 3.26            5.65                 0.90
 Earnings per ADS
 - Basic                                                2.26                 0.84            1.46                 0.23
 - Diluted                                              2.13                 0.81            1.41                 0.22
 Weighted average ordinary shares outstanding
 - Basic                                                36,049,244           35,497,512      33,287,150           33,287,150
 - Diluted                                              38,102,980           36,709,280      34,283,839           34,283,839
 * Share-based compensation charges included are as
 follows:
  Product development                                 26,713,733           33,262,981      33,671,462           5,357,603
  Sales and marketing                                 12,693,885           13,936,624      14,028,219           2,232,087
  General and administrative                          51,099,151           61,614,211      60,789,858           9,672,521





Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
                                                 Quarter Ended September 30, 2012
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
 Product development                            (243,244,924) 21%      33,671,462   3%       (209,573,462) 18%
 Sales and marketing                            (302,596,451) 26%      14,028,219   1%       (288,568,232) 25%
 General and administrative                     (151,107,619) 13%      60,789,858   5%       (90,317,761)  8%
 Total operating expenses                        (696,948,994) 59%      108,489,539  9%       (588,459,455) 50%
 Income from operations                          190,092,830   16%      108,489,539  9%       298,582,369   25%
 Net income attributable to Ctrip's shareholders 193,816,797   17%      108,489,539  9%       302,306,336   26%
 Diluted earnings per ordinary share (RMB)       5.65                   3.16                  8.82
 Diluted earnings per ADS (RMB)                  1.41                   0.79                  2.20
 Diluted earnings per ADS (USD)                  0.22                   0.13                  0.35
                                                 Quarter Ended June 30, 2012
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
 Product development                            (208,344,014) 21%      33,262,981   3%       (175,081,033) 18%
 Sales and marketing                            (217,235,897) 22%      13,936,624   1%       (203,299,273) 21%
 General and administrative                     (138,826,378) 14%      61,614,211   6%       (77,212,167)  8%
 Total operating expenses                        (564,406,289) 58%      108,813,816  11%      (455,592,473) 47%
 Income from operations                          168,049,872   17%      108,813,816  11%      276,863,688   28%
 NetincomeattributabletoCtrip'sshareholders 119,669,699   12%      108,813,816  11%      228,483,515   23%
 Diluted earnings per ordinary share (RMB)       3.26                   2.96                  6.22
 Diluted earnings per ADS (RMB)                  0.81                   0.74                  1.56
 Diluted earnings per ADS (USD)                  0.13                   0.12                  0.24
                                                 Quarter Ended September 30, 2011
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
 Product development                            (161,579,311) 17%      26,713,733   3%       (134,865,578) 14%
 Sales and marketing                            (173,855,350) 18%      12,693,885   1%       (161,161,465) 17%
 General and administrative                     (108,847,827) 11%      51,099,151   5%       (57,748,676)  6%
 Total operating expenses                        (444,282,488) 46%      90,506,769   9%       (353,775,719) 36%
 Income from operations                          304,292,261   31%      90,506,769   9%       394,799,030   41%
 Net income attributable to Ctrip's shareholders 325,280,298   33%      90,506,769   9%       415,787,067   43%
 Diluted earnings per ordinary share (RMB)       8.54                   2.38                  10.91
 Diluted earnings per ADS (RMB)                  2.13                   0.59                  2.73
 Diluted earnings per ADS (USD)                  0.33                   0.09                  0.43
 Notes for all the condensed consolidated financial schedules presented:
 Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of
 USD1.00=RMB6.2848 on September 28, 2012 published by the Federal Reserve Board.





SOURCE Ctrip.com International, Ltd.

Website: http://ir.ctrip.com