Ctrip Reports First Quarter 2013 Financial Results

              Ctrip Reports First Quarter 2013 Financial Results

PR Newswire

SHANGHAI, May 8, 2013

SHANGHAI, May 8, 2013 /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 March 31,
2013.

Highlights for the First Quarter of 2013

  oNet revenues were RMB1.2 billion (US$187 million) for the first quarter of
    2013, up 27% year-on-year, versus our first quarter net revenue guidance
    of 15-20% increase year-on-year.
  oGross margin was 74% for the first quarter of 2013, compared to 75% in the
    same period in 2012.
  oIncome from operations was RMB160 million (US$26 million) for the first
    quarter of 2013, down 9% year-on-year. Excluding share-based compensation
    charges (non-GAAP), income from operations was RMB272 million (US$44
    million), down 2% year-on-year.
  oOperating margin was 14% for the first quarter of 2013, compared to 19% in
    the same period in 2012. Excluding share-based compensation charges
    (non-GAAP), operating margin was 23%, compared to 30% in the same period
    in 2012.
  oNet income attributable to Ctrip's shareholders was RMB153 million (US$25
    million) for the first quarter of 2013, down 26% year-on-year. Excluding
    share-based compensation charges (non-GAAP), net income attributable to
    Ctrip's shareholders was RMB265 million (US$43 million), down 14%
    year-on-year.
  oDiluted earnings per ADS were RMB1.10 (US$0.18) for the first quarter of
    2013. Excluding share-based compensation charges (non-GAAP), diluted
    earnings per ADS were RMB1.87 (US$0.30) for the first quarter of 2013.
  oShare-based compensation charges were RMB112 million (US$18 million),
    accounting for 10% of the net revenues, or RMB0.77 (US$0.12) per ADS for
    the first quarter of 2013.

"We are glad to report strong results in the first quarter of 2013," said
James Liang, Chairman of the Board and Chief Executive Officer of Ctrip. "We
have made solid progress and gained market shares across major business lines.
We will continue to focus on our mobile strategy, improve price
competitiveness, strengthen partner relationships, and enhance marketing
effectiveness. Our goal is to become the one-stop travel platform with best
products, best services, and best prices for our customers. We are excited to
capture the opportunities in the travel industry in China and will work hard
to elevate our leadership to the next level."

First Quarter 2013 Financial Results

For the first quarter of 2013, Ctrip reported total revenues of RMB1.2 billion
(US$198 million), representing a 27% increase from the same period in 2012.
Total revenues for the first quarter of 2013 increased by 5% from the previous
quarter.

Hotel reservation revenues amounted to RMB451 million (US$73 million) for the
first quarter of 2013, representing a 23% increase year-on-year, primarily
driven by an increase of 41% in hotel reservation volume and partially offset
by a decrease of 13% in commission per room night. The decrease of commission
per room night was primarily due to promotional activities. Hotel reservation
revenues decreased by 4% quarter-on-quarter.

Air ticket booking revenues for the first quarter of 2013 were RMB457 million
(US$74 million), representing a 27% increase year-on-year, primarily driven by
an increase in air tickets sales volume. Air ticket booking revenues increased
by 2% quarter-on-quarter.

Packaged-tour revenues for the first quarter of 2013 were RMB235 million
(US$38 million), representing a 41% increase year-on-year due to the increase
of leisure travel volume. Packaged-tour revenues increased by 42%
quarter-on-quarter, primarily due to seasonality.

Corporate travel revenues for the first quarter of 2013 were RMB51 million
(US$8 million), representing a 31% increase year-on-year, primarily driven by
the increased corporate travel demand from business activities. Corporate
travel revenue decreased by 11% quarter-on-quarter, primarily due to
seasonality.

For the first quarter of 2013, net revenues were RMB1.2 billion (US$187
million), representing a 27% increase from the same period in 2012. Net
revenues for the first quarter of 2013 increased by 5% from the previous
quarter.

Gross margin was 74% for the first quarter of 2013, compared to 75% in the
same period in 2012 and remained consistent with that in the previous quarter.

Product development expenses for the first quarter of 2013 increased by 36% to
RMB268 million (US$43 million) from the same period in 2012, primarily due to
an increase in product development personnel related expense and share-based
compensation charges. Product development expenses for the first quarter of
2013 increased by 1% from the previous quarter. Excluding share-based
compensation charges (non-GAAP), product development expenses accounted for
20% of the net revenues, increased from 18% in the same period in 2012 and
decreased from 21% in the previous quarter.

Sales and marketing expenses for the first quarter of 2013 increased by 46% to
RMB267 million (US$43 million) from the same period in 2012, primarily due to
an increase in sales and marketing related activities. Sales and marketing
expenses for the first quarter of 2013 decreased by 5% from the previous
quarter, primarily due to a decrease in sales and marketing related
activities. Excluding share-based compensation charges (non-GAAP), sales and
marketing expenses accounted for 22% of the net revenues, increased from 19%
in the same period in 2012 and decreased from 24% in the previous quarter.

General and administrative expenses for the first quarter of 2013 increased by
25% to RMB161 million (US$26 million) from the same period in 2012, primarily
due to an increase in personnel related expenses and share-based compensation
charges. General and administrative expenses for the first quarter of 2013
increased by 6% from the previous quarter, primarily due to an increase in
personnel related expenses. Excluding share-based compensation charges
(non-GAAP), general and administrative expenses accounted for 8% of the net
revenues, remained consistent with that in the same period in 2012 and in the
previous quarter.

Income from operations for the first quarter of 2013 was RMB160 million (US$26
million), representing a decrease of 9% from the same period in 2012 and an
increase of 33% from the previous quarter. Excluding share-based compensation
charges (non-GAAP), income from operations was RMB272 million (US$44 million),
representing a decrease of 2% from the same period in 2012 and an increase of
16% from the previous quarter.

Operating margin was 14% for the first quarter of 2013, compared to 19% in the
same period in 2012, and 11% in the previous quarter. Excluding share-based
compensation charges (non-GAAP), operating margin was 23%, compared to 30% in
the same period in 2012, and 21% in the previous quarter.

The effective tax rate for the first quarter of 2013 was 32%, increased from
28% in the same period of 2012 and 25% in the previous quarter, primarily due
to certain non tax-deductible items in PRC subsidiaries.

Net income attributable to Ctrip's shareholders for the first quarter of 2013
was RMB153 million (US$25 million), representing a decrease of 26% from the
same period in 2012 and a decrease of 20% from the previous quarter. Excluding
share-based compensation charges (non-GAAP), net income attributable to
Ctrip's shareholders was RMB265 million (US$43 million), representing a
decrease of 14% from the same period in 2012 and a decrease of 13% from the
previous quarter.

Diluted earnings per ADS were RMB1.10 (US$0.18) for the first quarter of 2013.
Excluding share-based compensation charges (non-GAAP), diluted earnings per
ADS were RMB1.87 (US$0.30) for the first quarter of 2013.

As of March 31, 2013, the balance of cash and cash equivalents, restricted
cash and short-term investment was RMB6.2 billion (US$993 million).

Business Outlook

For the second quarter of 2013, 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.

Conference Call

Ctrip's management team will host a conference call at 8:00PM U.S. Eastern
Time on May 8, 2013 (or 8:00AM on May 9, 2013 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
+1.800.219.3192, International dial-in number + 1.617.597.5412, Passcode 893
736 31#. For pre-registration, please click:

https://www.theconferencingservice.com/prereg/key.process?key=P4DMDMUTH

A telephone replay of the call will be available after the conclusion of the
conference call through May 16, 2013. 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 46370952.

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 2013 and
2012. 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 helps customers book 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 X12928
Email: iremail@ctrip.com

Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Balance Sheets
                                                December31,2012  March31,2013   March31,2013
                                                RMB                RMB              USD
                                                (unaudited)        (unaudited)      (unaudited)
ASSETS
Current assets:
Cash and cash equivalents                       3,421,532,962      3,939,763,848    634,340,801
Restricted cash                                 768,228,577        737,745,826      118,784,348
Short-term investment                          1,408,664,335      1,487,624,662    239,522,229
Accounts receivable, net                        983,804,403        1,254,443,621    201,977,784
Prepayments and other current assets            999,148,710        745,785,290      120,078,781
Deferred tax assets, current                    61,840,526         72,365,245       11,651,518
Total current assets                            7,643,219,513      8,237,728,492    1,326,355,461
Long-term deposits and prepayments         210,618,310        191,532,838      30,838,674
Land use rights                                 110,659,284        109,716,237      17,665,395
Property, equipment and software                1,123,937,191      1,302,525,959    209,719,514
Investment                                      1,437,247,949      1,413,670,522    227,614,884
Goodwill                                        822,585,341        828,989,339      133,475,452
Intangible assets                               321,483,420        319,630,175      51,463,608
Total assets                                    11,669,751,008     12,403,793,562   1,997,132,988
LIABILITIES
Current liabilities:
Short-term borrowings                           453,478,628        452,201,931      72,808,967
Accounts payable                                1,023,672,151      1,472,683,797    237,116,603
Salary and welfare payable                      229,969,924        206,125,620      33,188,256
Taxes payable                                   216,456,010        216,034,596      34,783,699
Advances from customers                         1,414,865,769      1,330,890,648    214,286,509
Accruedliabilityforcustomerrewardprogram  217,548,153        228,917,574      36,857,985
Other payables and accruals                     354,153,607        375,254,743      60,419,711
Total current liabilities                       3,910,144,242      4,282,108,909    689,461,730
Deferred tax liabilities, non-current           53,309,153         53,147,954       8,557,344
Long-term Debt                                  1,121,418,000      1,117,944,000    180,000,000
Total liabilities                               5,084,871,395      5,453,200,863    878,019,074
SHAREHOLDERS' EQUITY
Share capital                                   2,979,144          2,993,488        481,981
Additional paid-in capital                      3,818,256,227      3,945,645,513    635,287,807
Statutory reserves                              103,222,512        103,222,514      16,619,842
Accumulated other comprehensive loss            (58,778,675)       (82,154,164)     (13,227,630)
Retained Earnings                               4,515,841,767      4,669,313,240    751,805,442
Treasury stock                                 (1,891,888,900)    (1,891,888,900)  (304,612,755)
Total Ctrip's shareholders' equity              6,489,632,075      6,747,131,691    1,086,354,687
Noncontrolling interests                        95,247,538         203,461,008      32,759,227
Total shareholders' equity                      6,584,879,613      6,950,592,699    1,119,113,914
Total liabilities and shareholders' equity      11,669,751,008     12,403,793,562   1,997,132,988



Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
                                                        QuarterEnded  QuarterEnded      QuarterEnded  QuarterEnded
                                                        March          December31,2012  March          March
                                                        31,2012                          31,2013       31,2013
                                                        RMB            RMB                RMB            USD
                                                        (unaudited)    (unaudited)        (unaudited)    (unaudited)
Revenues:
Hotel reservation                                       366,784,363    468,304,604        450,524,886    72,538,946
Air-ticketing                                           360,463,420    447,186,315        456,502,524    73,501,405
Packaged tour                                           166,379,981    165,724,297        235,208,743    37,870,925
Corporate travel                                        38,801,113     57,532,553         50,973,701     8,207,268
Others                                                  31,170,118     28,546,319         35,198,400     5,667,289
Total revenues                                          963,598,995    1,167,294,088      1,228,408,254  197,785,833
Less: business tax and related surcharges               (52,790,604)   (65,938,822)       (67,900,120)   (10,932,588)
Net revenues                                            910,808,391    1,101,355,266      1,160,508,134  186,853,245
Cost of revenues                                        (225,956,740)  (284,704,746)      (304,171,687)  (48,974,639)
Gross profit                                            684,851,651    816,650,520        856,336,447    137,878,606
Operating expenses:
Product development *                                   (196,216,150)  (264,099,634)      (267,532,617)  (43,075,388)
Sales and marketing *                                   (183,405,064)  (280,764,753)      (267,494,323)  (43,069,222)
General and administrative *                            (128,674,249)  (151,879,211)      (161,292,761)  (25,969,724)
Total operating expenses                                (508,295,463)  (696,743,598)      (696,319,701)  (112,114,334)
Income from operations                                  176,556,188    119,906,922        160,016,746    25,764,272
Interest income                                         45,773,353     34,061,163         22,559,420     3,632,289
Other income                                            9,437,752      58,378,812         7,689,137      1,238,027
Incomebeforeincometaxexpenseandequityinincome  231,767,293    212,346,897        190,265,303    30,634,588
Income tax expense                                      (64,797,513)   (53,776,285)       (61,378,155)   (9,882,488)
Equity in income of affiliates                          43,475,409     4,265,040          87,806         14,138
Net income                                              210,445,189    162,835,652        128,974,954    20,766,238
Less: Net (income)/loss attributable to noncontrolling  (2,077,847)    29,716,374         24,496,519     3,944,181
interests
Net income attributable to Ctrip's shareholders         208,367,342    192,552,026        153,471,473    24,710,419
Comprehensive income                                    127,215,669    197,932,727        130,095,984    20,946,735
Earnings per ordinary share
- Basic                                                 5.80           5.96               4.73           0.76
- Diluted                                               5.48           5.51               4.39           0.71
Earnings per ADS
- Basic                                                 1.45           1.49               1.18           0.19
- Diluted                                               1.37           1.38               1.10           0.18
Weighted average ordinary shares outstanding
- Basic                                                 35,911,996     32,282,299         32,439,013     32,439,013
- Diluted                                               38,053,311     35,719,079         36,015,108     36,015,108
* Share-based compensation charges included are as
follows:
 Product development                                  29,767,590     35,881,144         34,854,918     5,611,985
 Sales and marketing                                  13,547,719     14,379,832         13,292,481     2,140,220
 General and administrative                           57,363,156     63,478,526         63,440,672     10,214,573



Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
                                                 Quarter Ended March 31,2013
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
Product development                             (267,532,617) 23%      34,854,918   3%       (232,677,699) 20%
Sales and marketing                             (267,494,323) 23%      13,292,481   1%       (254,201,842) 22%
General and administrative                      (161,292,761) 14%      63,440,672   5%       (97,852,089)  8%
Total operating expenses                         (696,319,701) 60%      111,588,071  10%      (584,731,630) 50%
Income from operations                           160,016,746   14%      111,588,071  10%      271,604,817   23%
Net income attributable to Ctrip's shareholders  153,471,473   13%      111,588,071  10%      265,059,544   23%
Dilutedearningsperordinaryshare(RMB) 4.39                   3.10                  7.49
Diluted earnings per ADS (RMB)                   1.10                   0.77                  1.87
Diluted earnings per ADS (USD)                   0.18                   0.12                  0.30
                                                 Quarter Ended December 31,2012
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
Product development                             (264,099,634) 24%      35,881,144   3%       (228,218,490) 21%
Sales and marketing                             (280,764,753) 25%      14,379,832   1%       (266,384,921) 24%
General and administrative                      (151,879,211) 14%      63,478,526   6%       (88,400,685)  8%
Total operating expenses                         (696,743,598) 63%      113,739,502  10%      (583,004,096) 53%
Income from operations                           119,906,922   11%      113,739,502  10%      233,646,424   21%
Net income attributable to Ctrip's shareholders  192,552,026   17%      113,739,502  10%      306,291,528   28%
Diluted earnings per ordinary share (RMB)        5.51                   3.18                  8.70
Diluted earnings per ADS (RMB)                   1.38                   0.80                  2.17
Diluted earnings per ADS (USD)                   0.22                   0.13                  0.35
                                                 Quarter Ended March 31,2012
                                                               % of     Share-based  % of     Non-GAAP      % of
                                                 GAAP Result  Net      Compensation Net      Result        Net
                                                               Revenue               Revenue                Revenue
Product development                             (196,216,150) 22%      29,767,590   3%       (166,448,560) 18%
Sales and marketing                             (183,405,064) 20%      13,547,719   1%       (169,857,345) 19%
General and administrative                      (128,674,249) 14%      57,363,156   6%       (71,311,093)  8%
Total operating expenses                         (508,295,463) 56%      100,678,465  11%      (407,616,998) 45%
Income from operations                           176,556,188   19%      100,678,465  11%      277,234,653   30%
Net income attributable to Ctrip's shareholders  208,367,342   23%      100,678,465  11%      309,045,807   34%
Diluted earnings per ordinary share (RMB)        5.48                   2.65                  8.12
Diluted earnings per ADS (RMB)                   1.37                   0.66                  2.03
Diluted earnings per ADS (USD)                   0.22                   0.11                  0.32
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=RMB6.2108 on March 29, 2013 published by the Federal Reserve Board.

SOURCE Ctrip.com International, Ltd.

Website: http://ir.ctrip.com
Website:
https://www.theconferencingservice.com/prereg/key.process?key=P4DMDMUTH
 
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