Ctrip Reports Second Quarter 2013 Financial Results

             Ctrip Reports Second Quarter 2013 Financial Results

PR Newswire

SHANGHAI, July 31, 2013

SHANGHAI, July 31, 2013 /PRNewswire/ -- Ctrip.com International, Ltd. (Nasdaq:
CTRP), a leading travel service provider of hotel accommodations, ticketing
services, packaged tours and corporate travel management in China, today
announced its unaudited financial results for the quarter ended June 30, 2013.

Highlights for the Second Quarter of 2013

  oNet revenues were RMB1.2 billion (US$203 million) for the second quarter
    of 2013, up 28% year-on-year.
  oGross margin was 75% for the second quarter of 2013, remained consistent
    with that in the same period of 2012.
  oIncome from operations was RMB196 million (US$32 million) for the second
    quarter of 2013, up 17% year-on-year. Excluding share-based compensation
    charges (non-GAAP), income from operations was RMB307 million (US$50
    million), up 11% year-on-year.
  oOperating margin was 16% for the second quarter of 2013, compared to 17%
    in the same period of 2012. Excluding share-based compensation charges
    (non-GAAP), operating margin was 25%, compared to 28% in the same period
    of 2012.
  oNet income attributable to Ctrip's shareholders was RMB210 million (US$34
    million) in the second quarter of 2013, up 76% year-on-year. Excluding
    share-based compensation charges (non-GAAP), net income attributable to
    Ctrip's shareholders was RMB322 million (US$52 million), up 41%
    year-on-year.
  oDiluted earnings per ADS were RMB1.47 (US$0.24) for the second quarter of
    2013. Excluding share-based compensation charges (non-GAAP), diluted
    earnings per ADS were RMB2.23 (US$0.36) for the second quarter of 2013.
  oShare-based compensation charges were RMB111 million (US$18 million),
    accounting for 9% of the net revenues, or RMB0.76 (US$0.12) per ADS for
    the second quarter of 2013.

"We are pleased to report strong results in the second quarter of 2013," said
James Liang, Chairman of the Board and Chief Executive Officer of Ctrip.
"Mobile Internet is changing the travel industry rapidly and our mobile
strategy builds upon Ctrip's one-stop travel platform that features
comprehensive products, industry leading service quality, and competitive
prices. Transactions from Ctrip mobile channels tripled year-over-year in the
second quarter and contributed to over 20% of hotel booking and approximately
15% of air ticket booking. We are excited to embrace the changes in the travel
industry in China and will endeavor to create more value for our business
partners and customers in an innovative fashion."

Second Quarter 2013 Financial Results and Business Updates

For the second quarter of 2013, Ctrip reported total revenues of RMB1.3
billion (US$215 million), representing a 28% increase from the same period of
2012. Total revenues for the second quarter of 2013 increased by 7% from the
previous quarter.

Hotel reservation revenues amounted to RMB511 million (US$83 million) for the
second quarter of 2013, representing a 25% increase year-on-year, primarily
driven by an increase of 44% in hotel reservation volume and partially offset
by 14% decrease of commission per room night. The decrease of commission per
room night was primarily due to promotional activities. Hotel reservation
revenues increased by 13% quarter-on-quarter, primarily driven by hotel
reservation volume growth.

Ticketing services revenues for the second quarter of 2013 were RMB522 million
(US$85 million), representing a 29% increase year-on-year, primarily driven by
an increase of 34% in air ticketing sales volume and partially offset by 6%
decrease of commission per air ticket. Ticketing services revenues increased
14% quarter-on-quarter, primarily driven by air ticketing sales volume growth.

Packaged-tour revenues for the second quarter of 2013 were RMB187 million
(US$30 million), representing a 40% increase year-on-year due to the increase
of leisure travel volume. Packaged-tour revenues decreased 20%
quarter-on-quarter, primarily due to seasonality.

Corporate travel revenues for the second quarter of 2013 were RMB66 million
(US$11 million), representing a 34% increase year-on-year, primarily driven by
the increased corporate travel demand from business activities. Corporate
travel revenues increased 29% quarter-on-quarter, primarily due to
seasonality.

For the second quarter of 2013, net revenues were RMB1.2 billion (US$203
million), representing a 28% increase from the same period of 2012. Net
revenues for the second quarter of 2013 increased by 7% from the previous
quarter.

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

Product development expenses for the second quarter of 2013 increased by 49%
to RMB310 million (US$50 million) from the same period of 2012 and by 16% 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 22% of the net
revenues, increased from 18% in the same period of 2012 and 20% in the
previous quarter.

Sales and marketing expenses for the second quarter of 2013 increased by 25%
to RMB271 million (US$44 million) from the same period in 2012, primarily due
to an increase in sales and marketing related activities. Sales and marketing
expenses for the second quarter of 2013 increased by 1% from the previous
quarter. Excluding share-based compensation charges (non-GAAP), sales and
marketing expenses accounted for 21% of the net revenues, remained consistent
with that in the same period of 2012 and decreased from 22% in the previous
quarter.

General and administrative expenses for the second quarter of 2013 increased
by 14% to RMB159 million (US$26 million) from the same period in 2012,
primarily due to an increase in administrative personnel related expense and
share-based compensation charges. General and administrative expenses for the
second quarter of 2013 decreased by 2% from the previous quarter. 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 of 2012 and the previous quarter.

Income from operations for the second quarter of 2013 was RMB196 million
(US$32 million), representing an increase of 17% from the same period in 2012
and an increase of 22% from the previous quarter. Excluding share-based
compensation charges (non-GAAP), income from operations was RMB307 million
(US$50 million), representing an increase of 11% from the same period in 2012
and an increase of 13% from the previous quarter.

Operating margin was 16% in the second quarter of 2013, compared to 17% in the
same period of 2012 and 14% in the previous quarter. Excluding share-based
compensation charges (non-GAAP), operating margin was 25%, decreased from 28%
in the same period of 2012 and increased from 23% in the previous quarter.

The effective tax rate for the second quarter of 2013 was 27%, decreased from
45% in the same period of 2012, primarily because Ctrip accrued the provision
of 5% PRC withholding tax related to the dividends that our PRC subsidiaries
would pay to our Hong Kong subsidiary to fund the share repurchase program in
the second quarter of 2012. The effective tax rate for the second quarter of
2013 decreased from 32% in the previous quarter, primarily due to the decrease
in the amount of non tax-deductible share-based compensation as a percentage
to our income as a whole.

Net income attributable to Ctrip's shareholders for the second quarter of 2013
was RMB210 million (US$34 million), representing an increase of 76% from the
same period in 2012 and 37% from the previous quarter. Excluding share-based
compensation charges (non-GAAP), net income attributable to Ctrip's
shareholders was RMB322 million (US$52 million), representing an increase of
41% from the same period in 2012 and 21% from the previous quarter.

Diluted earnings per ADS were RMB1.47 (US$0.24) for the second quarter of
2013. Excluding share-based compensation charges (non-GAAP), diluted earnings
per ADS were RMB2.23 (US$0.36) for the second quarter of 2013.

As of June 30, 2013, the balance of cash and cash equivalents, restricted cash
and short-term investment was RMB6.7 billion (US$1.1 billion).

Suyang Zhang, an independent director of Ctrip, has voluntarily tendered a
letter of resignation to the board of directors of the company (the "Board")
and confirmed that his resignation did not result from any disagreement with
the Company. The Board has approved the resignation, which is effective from
August 1, 2013. After Mr. Zhang's resignation, the Board will consist of six
directors, including four independent directors. James Liang, Chairman of the
Board and Chief Executive Officer of Ctrip said, "As an active member of our
Board, Suyang has made many contributions to Ctrip from the startup. We
appreciate his great support to the Company and wish him the best in his
future endeavors."

Business Outlook

For the third quarter of 2013, the Company expects the net revenue growth to
continue year-on-year at a rate of approximately 20-25%. 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 July 31, 2013 (or 8:00 AM on August 1, 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 445
529 12#. For pre-registration, please click
https://www.theconferencingservice.com/prereg/key.process?key=PDRKVPYFX 

A telephone replay of the call will be available after the conclusion of the
conference call through August 8, 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 96778845.

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, ticketing services, 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 X 12928
Email: iremail@ctrip.com

Ctrip.com International,
Ltd.
Unaudited Condensed Consolidated Balance
Sheets
                             December31,2012  June 30,2013    June 30,2013
                             RMB                RMB              USD
                             (unaudited)        (unaudited)      (unaudited)
ASSETS
Current assets:
Cash and cash equivalents    3,421,532,962      2,750,523,923    448,157,839
Restricted cash              768,228,577        735,970,778      119,915,726
Short-term investment       1,408,664,335      3,225,957,978    525,622,899
Accounts receivable, net     983,804,403        1,545,038,631    251,741,557
Prepayments and other        999,148,710        957,350,902      155,986,395
current assets
Deferred tax assets,         61,840,526         103,005,234      16,783,204
current
Total current assets         7,643,219,513      9,317,847,446    1,518,207,620
Long-term deposits and       210,618,310        196,873,152      32,077,615
prepayments
Land use rights              110,659,284        108,970,499      17,755,157
Property, equipment and      1,123,937,191      1,331,911,480    217,015,590
software
Investment                   1,437,247,949      1,368,876,743    223,038,541
Goodwill                     822,585,341        828,989,339      135,071,747
Intangible assets            321,483,420        318,007,012      51,814,614
Total assets                 11,669,751,008     13,471,475,671   2,194,980,884
LIABILITIES
Current liabilities:
Short-term borrowings        453,478,628        446,631,874      72,772,163
Accounts payable             1,023,672,151      1,532,591,707    249,713,512
Salary and welfare payable   229,969,924        265,013,465      43,180,087
Taxes payable                216,456,010        265,930,261      43,329,465
Advances from customers      1,414,865,769      1,834,217,371    298,859,024
Accrued liability for        217,548,153        251,719,921      41,014,097
customer reward program
Other payables and accruals  354,153,607        406,170,328      66,179,544
Total current liabilities    3,910,144,242      5,002,274,927    815,047,892
Deferred tax liabilities,    53,309,153         53,014,655       8,637,966
non-current
Long-term Debt               1,121,418,000      1,104,732,000    180,000,000
Total liabilities            5,084,871,395      6,160,021,582    1,003,685,858
SHAREHOLDERS' EQUITY
Share capital                2,979,144          3,007,548        490,036
Additional paid-in capital   3,818,256,227      4,120,652,353    671,400,325
Statutory reserves           103,222,512        103,222,512      16,818,606
Accumulated other            (58,778,675)       (84,377,951)     (13,748,159)
comprehensive loss
Retained Earnings            4,515,841,767      4,879,694,334    795,075,168
Treasury stock              (1,891,888,900)    (1,891,888,900)  (308,255,760)
Total Ctrip's shareholders'  6,489,632,075      7,130,309,896    1,161,780,216
equity
Noncontrolling interests     95,247,538         181,144,193      29,514,810
Total shareholders' equity   6,584,879,613      7,311,454,089    1,191,295,026
Total liabilities and        11,669,751,008     13,471,475,671   2,194,980,884
shareholders' equity



Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
                 QuarterEnded  QuarterEnded   QuarterEnded  QuarterEnded
                 June 30,2012  March31,2013  June 30,2013  June 30,2013
                 RMB            RMB             RMB            USD
                 (unaudited)    (unaudited)     (unaudited)    (unaudited)
Revenues:
Hotel            410,370,431    450,524,886     510,977,850    83,256,403
reservation
Ticketing        404,268,226    456,502,524     522,013,771    85,054,546
services **
Packaged tour    133,776,555    235,208,743     187,024,425    30,472,908
Corporate        49,348,796     50,973,701      65,944,003     10,744,615
travel
Others           33,187,613     35,198,400      34,190,294     5,570,811
Total revenues   1,030,951,621  1,228,408,254   1,320,150,343  215,099,283
Less: business
tax and related  (57,326,573)   (67,900,120)    (75,294,640)   (12,268,166)
surcharges
Net revenues     973,625,048    1,160,508,134   1,244,855,703  202,831,117
Cost of          (241,168,887)  (304,171,687)   (309,111,062)  (50,365,148)
revenues
Gross profit     732,456,161    856,336,447     935,744,641    152,465,969
Operating
expenses:
Product          (208,344,014)  (267,532,617)   (309,851,724)  (50,485,829)
development *
Sales and        (217,235,897)  (267,494,323)   (271,244,149)  (44,195,286)
marketing *
General and
administrative   (138,826,378)  (161,292,761)   (158,708,095)  (25,859,174)
*
Total operating  (564,406,289)  (696,319,701)   (739,803,968)  (120,540,289)
expenses
Income from      168,049,872    160,016,746     195,940,673    31,925,680
operations
Interest income  31,865,564     22,559,420      43,062,336     7,016,381
Other income     56,366,412     7,689,137       24,056,241     3,919,614
Income before
income tax
expense and      256,281,848    190,265,303     263,059,250    42,861,675
equity in
income
Income tax       (116,557,710)  (61,378,155)    (70,419,098)   (11,473,767)
expense
Equity in
(loss)/income    (18,189,504)   87,806          (4,525,873)    (737,425)
of affiliates
Net income       121,534,634    128,974,954     188,114,279    30,650,483
Less: Net
(income)/loss
attributable to  (1,864,935)    24,496,519      22,266,815     3,628,053
noncontrolling
interests
Net income
attributable to  119,669,699    153,471,473     210,381,094    34,278,536
Ctrip's
shareholders
Comprehensive    137,792,479    130,095,984     208,157,307    33,916,203
income
Earnings per ordinary share
- Basic          3.37           4.73            6.44           1.05
- Diluted        3.26           4.39            5.88           0.96
Earnings per
ADS
- Basic          0.84           1.18            1.61           0.26
- Diluted        0.81           1.10            1.47           0.24
Weighted average ordinary
shares outstanding
- Basic          35,497,512     32,439,013      32,677,730     32,677,730
- Diluted        36,709,280     36,015,108      36,573,910     36,573,910
* Share-based compensation charges included
are as follows:
 Product        33,262,981     34,854,918      35,003,222     5,703,266
development
 Sales and      13,936,624     13,292,481      12,325,365     2,008,239
marketing
 General and    61,614,211     63,440,672      63,838,858     10,401,613
administrative
** Ticketing services revenues mainly represent revenues from reservations of
air tickets, railway tickets and other related services.



Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
                                                               Quarter Ended June 30,2013
                                                               GAAP Result  % of Net  Share-based  % of Net  Non-GAAP      % of Net
                                                                             Revenues  Compensation Revenues  Result        Revenues
Productdevelopment (309,851,724) 25%       35,003,222   3%        (274,848,502) 22%
Sales and marketing                                           (271,244,149) 22%       12,325,365   1%        (258,918,784) 21%
General and administrative                                    (158,708,095) 13%       63,838,858   5%        (94,869,237)  8%
Total operating expenses                                       (739,803,968) 59%       111,167,445  9%        (628,636,523) 50%
Income from operations                                         195,940,673   16%       111,167,445  9%        307,108,118   25%
Net income attributable to Ctrip's shareholders                210,381,094   17%       111,167,445  9%        321,548,539   26%
Diluted earnings per ordinary share (RMB)                      5.88                    3.04                   8.92
Diluted earnings per ADS (RMB)                                 1.47                    0.76                   2.23
Diluted earnings per ADS (USD)                                 0.24                    0.12                   0.36
                                                               Quarter Ended March 31, 2013
                                                               GAAP Result  % of Net  Share-based  % of Net  Non-GAAP      % of Net
                                                                             Revenues  Compensation Revenues  Result        Revenues
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%
Diluted earnings per ordinary share (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 June 30, 2012
                                                               GAAP Result  % of Net  Share-based  % of Net  Non-GAAP      % of Net
                                                                             Revenues  Compensation Revenues  Result        Revenues
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%
Net income attributable to Ctrip's shareholders                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
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=RMB6.1374 on June
28, 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=PDRKVPYFX