ebookers continues strong performance
Quarter 2 and Half Year Results
- ebookers expands India back office (Business Process Outsourcing facility) to
service 3rd parties and further develops profitability potential -
4 August 2003 - ebookers plc, the pan-European leisure specialist online, (LSE:
EBR, Nasdaq: EBKR) today announces its financial results for Quarter 2 and the
Half Year ended 30 June 2003.
Highlights for Quarter 2
- Gross sales rise by 67% to �118m (Q2 2002 - �71m).
- Turnover (gross profit) rises 101% to �15.0m (Q2 2002 - �7.5m). Organic
growth of 28%.
- Margin1 improves to 12.7% (Q2 2002 10.5%). An excellent result.
- Adjusted pre-tax loss2 significantly reduced in seasonally weakest quarter to
�(0.9)m (Q2 2002 �(1.7)m) despite SARS and Iraq War.
- Travelbag integration continues to make rapid progress. 35% of passengers now
from Internet.
- India BPO cost savings this quarter estimated at �1.4m.
- India BPO capacity to increase from 600 to 2,000 staff in taking on third
party clients. The BPO will trade under the name Tecnovate.
Nigel Addison Smith, CFO, ebookers plc comments:
"These strong results in what is now our seasonally weakest quarter, combined
with the effects of the war and SARS, show the capability of the ebookers
businesses. The integration of Travelbag continues ahead of expectations with
the migration of activity to our Indian BPO well underway. These results
highlight our bottom line focus of tight cost control combined with internet
driven top line growth."
Dinesh Dhamija, CEO, ebookers plc comments:
"We are now in the process of increasing the size of Tecnovate, our BPO
facility. This additional capacity will be used to service third party clients.
We have already demonstrated our expertise in creating a successful BPO and
will now turn it from a cost centre into a profit centre. When combined with
the high internet growth of an online travel company we believe that this gives
ebookers a unique position to build on the profit potential of the group."
1 Margin defined as turnover (gross profit) as a percentage of gross sales.
2 Before amortisation, all stock compensation related costs, and exceptional
items. See note 3.
Chairman's statement
ebookers has recorded an excellent second quarter. This was despite the impact
of SARS and the Iraq war and most importantly the low winter season for our
recent acquisition, Travelbag Holdings Limited "Travelbag", which is focused on
long haul southern hemisphere destinations.
Travelbag Integration
As a bricks and mortar travel company, with a long-haul focus, Travelbag has
traditionally been unprofitable in Quarter 2, making the majority of its
profits in the Autumn and Winter peak long haul booking period. We aim to use
the internet to deliver profits whatever the season.
Travelbag's internet sales have increased from 16% of all passengers in January
to 35% in July. This is an excellent result at this stage, however the process
is still in its early stages. The faster we can convert Travelbag to online
sales channels, the more profitable its sales will become. For the Travelbag
brand, our aim is to deliver 70%+ internet passenger bookings within the next
12 months.
BPO
We have successfully undergone the complex process of establishing an Indian
BPO facility. The BPO facility is key to cost reduction, but it is also a
critical driver behind our sales growth. Cost levels in India allow us to take
on high-quality revenue-generating staff. This resource is key to delivering
profitable e-mail sales, and proactive customer service encouraging product
cross sell. In Quarter 2 2003 we estimate that the BPO facility delivered cost
savings of �1.4m. (This is the estimated cost if Indian functions had been
carried out in Europe instead). With Travelbag functions currently being
transferred, BPO cost savings could rise to over �2m per quarter by the end of
the year.
The BPO facility has been designed to act as a third party service provider,
and we have already received several approaches from top-tier international
organisations anxious to benefit from ebookers' BPO facility.
To service these clients, and additional workload from ebookers, the company
has taken on an additional 62,000 sq ft in New Delhi, with capacity to recruit
up to 1,400 more staff. This expansion is being supported by the recruitment of
additional senior management, and the establishment of internationally
recognised quality accreditation programmes.
Technology
ebookers' technology development programme is focused on sales and margin
growth as well as supporting group cost reduction targets through automation.
Key to growth is the installation of optimal product mix technologies. On the
UK website new technology has just been launched allowing the dynamic packaging
of hotel and flight products, giving excellent value to our customers and the
capacity for significant margin enhancements to our business. Enhanced car and
hotel booking engines are at advanced stages of development. All of these
initiatives will be supported by a new company-wide CRM programme aimed at
improving conversion and customer retention rates and providing data to drive
future marketing campaigns.
Financial statement
During the period, ebookers has continued its track record of growth combined
with cost control.
With the addition of Travelbag and its effect on our seasonal mix, Quarter 2 is
now the group's weakest seasonal quarter. This quarter was also affected by
SARS and the Iraq War. Nonetheless it has seen significant acquisition and
organic (non-acquisition) growth with gross sales of �118.2m in Quarter 2 2003
compared to �71.0m in Quarter 2 2002, an increase of 67%. Turnover (gross
profit) increased 101% year on year to �15.0m, with organic growth of 28%. For
the first half of 2003, gross sales were �226.9m compared to �131.6m in the
same period last year an increase of 72%. Turnover (gross profit) was �29.3m
compared to �14.2m in the first half of 2002, an increase of 107%, and an
organic increase of 35%.
Particularly encouraging during the first half of 2003 and Quarter 2 2003 was
the effect of increased non-air sales and their impact on overall margins. Our
overall margin (gross margin on gross sales), increased to 12.7% in Q2 (Q2
2002: 10.5%) and 12.9% in the first half year (first half 2002, 10.8%).
Turnover (gross profit) from non-air products accounted for approximately 37%
of turnover in Quarter 2 2003 compared to 24% in Quarter 2 2002.
Quarter 2 2003 adjusted (cash) operating costs* were �15.0m. The Quarter 2 2003
costs represent 12.7% of gross sales. Within this, the cost base of the
Travelbag business represented 15.9% of gross sales, compared to 11.0% for
ebookers. This indicates the significant potential to decrease Travelbag costs,
particularly through continued transfer of functions to the India BPO and
increased online sales and automation.
Adjusted loss before tax* was �0.9m in Quarter 2 2003. This was better than
market expectations and compares to an adjusted loss before tax of �1.7m in
Quarter 2 2002. For the first half of 2003 we achieved an adjusted loss of �
0.8m compared to an adjusted loss of �4.0m for the first half of 2002. Within
the first half of 2003, in the seasonally stronger Quarter 1 we achieved our
first ever adjusted profit of �0.1m despite the Iraq war and its build-up,
indicative of the significant profitability potential of our business.
Excluding Travelbag, ebookers made an adjusted profit of �0.2m for Quarter 2
2003, with Travelbag making an adjusted loss of �1.1m due to this being its
weakest quarter and the effect of SARS.
Loss after tax for Quarter 2 2003 was �7.4m compared to �3.5m in Quarter 2
2002. The increase was predominantly due to an increase of �1.1m in goodwill
amortisation from �1.2m in Quarter 2 2002 to �2.3m in Quarter 2 2003 following
the Travelbag acquisition, and �2.9m of exceptional items, mainly due to
exceptional costs associated with the integration of Travelbag. For the first
half of 2003 the loss after tax was �12.3m, compared to �7.0m in the first half
of 2002. In the first half of 2003 the loss included �6.8m of exceptional items
(again mainly associated with Travelbag). Goodwill amortisation charges in the
first half of 2003 were �4.2m, compared to �2.4m in the first half of 2002.
Quarter 2 2003 saw a significant strengthening of our cash position from �49m
at the end of Quarter 1 2003, to �56m at the end of Quarter 2 2003.
Current trading
Our UK acquisition of Travelbag and Bridge the World has delivered an excellent
performance in July powered by the successful start of their conversion to
online sales. Our mainland European subsidiaries are also performing well.
However, we are currently seeing lower than expected demand for some long and
mid haul destinations. We believe that this has been caused by the knock-on
effect of SARS and the Iraq war on consumer demand in these markets.
We believe that the prospects remain good for autumn and winter bookings given
the long and mid haul focus of the company.
Outlook
We are extremely confident about the future due to our strength in destination
content, geographical breadth, ability to serve customers both on and offline,
and our low cost BPO in India.
--ends--
* Please see note 3 for definition and schedule of proforma adjusted financial
measures
MEDIA PHOTOGRAPHY OF BPO WILL BE AVAILABLE MONDAY PM
For further information:
ebookers plc
Oliver Strong +44 (0) 20 7489 2239
oliver.strong@ebookers.com +44 (0) 7771 934 153
Cubitt Consulting (UK)
Peter Ogden +44 (0) 20 7367 5130
peter.ogden@cubitt.com 07811 124 197
Webcast and conference call
When: Monday 4 August at 16:00 BST /15:00 GMT / 17:00 CET / 11:00 ET (USA,
NYC).
Where: For registration of the live event please click on the link below:
http://meta.unit.net/ebookers/20030804/index.html
Should you wish to take part in the Conference Call, please dial one of the
following numbers:
UK dial in 0845 245 3471
International dial in +44 (0) 1452 550 000
A replay of the conference will be available for 7 days on the following
numbers:
UK 0845 245 5205
International +44 (0) 1452 55 00 00
Replay Access Number: 341092#
If you are unable to participate during the live audio webcast, the event will
be archived on the same URL as listed above for 90 days from the date of the
event.
(Minimum Requirements to listen to broadcast:
The Windows Media Player software, downloadable free from http://
www.microsoft.com/windows/windowsmedia/en/download/default.asp
Or Real Player and at least a 28.8Kbps connection to the Internet.)
About ebookers plc
ebookers is a leading pan-European online travel agency with websites in 12
European countries - UK, France, Ireland, Germany, Austria, Spain, Holland,
Switzerland, Sweden, Denmark, Norway, and Finland. It specialises in the mid-
and long-haul modular leisure segments of the European travel industry. It also
specialises in selling discount merchant fares, which are negotiated directly
with leading travel suppliers in order to help them sell their excess capacity
without damaging their pricing structure and brands. ebookers has a low-cost
BPO facility in New Delhi, India with a staff of over 600, which carries out 13
separate functions from email sales to software development. The Company has a
multi brand marketing strategy. Its brands include ebookers.com, Flightbookers,
Travelbag, Travelbag Adventures Bridge the World, and MrJet. ebookers plc is
listed on the London Stock Exchange and quoted on Nasdaq in the United States
of America.
Forward Looking Statements
Except for the historical information contained herein, the matters discussed
in this news release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those
in such forward looking statements. Potential risks and uncertainties include,
without limitation, the company's ability to identify, acquire and integrated
companies across Europe including Travelbag Holdings, its ability to
significantly increase its online revenues and sales volumes, to maintain and
develop relationships with travel suppliers and strategic partners and to
attract and retain customers, potential adverse changes in its gross mark up or
in commission rates, reduce its operating costs through outsourcing certain
functions to India, unforeseen events affecting the travel industry, and the
company's dependence on its ability to establish its brand. The foregoing list
of important factors is not exhaustive. When relying on forward-looking
statements, readers should carefully consider the foregoing factors and other
uncertainties and events, as well as factors described in documents ebookers
plc files from time to time with regulatory authorities in the United Kingdom
and the United States, including annual reports on Form 20-F filed with the US
Securities and Exchange Commission. Any forward-looking statements speak only
as of the date on which they are made and except as required by the rules of
the UK Listing Authority, the London Stock Exchange and applicable law,
ebookers plc undertakes no obligation to update publicly or revise any
forward-looking statements.
CONSOLIDATED QUARTERLY Quarter Quarter Quarter Half year Half year
PROFIT AND LOSS ACCOUNT ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
[Prepared in accordance with UK �'000 �'000 �'000 �'000 �'000
GAAP]
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
GROSS SALES Note 118,216 70,988 108,662 226,878 131,624
1
(Q2 2003 including
acquisitions: �39,653,000)
Turnover (gross profit) Note 15,025 7,478* 14,287 29,312 14,191*
1
(Q2 2003 including
acquisitions: �5,454,000)
Distribution costs: (Q2 2003 including
acquisitions: �4,019,000)
Sales and marketing (8,420) (4,281) (7,616) (16,036) (7,743)
Administrative expenses: (Q2 2003 including
acquisitions: �6,660,000)
Technology costs (1,077) (751) (1,380) (2,457) (1,468)
General administrative (5,475) (3,393) (4,867) (10,342) (7,233)
expenses
Depreciation (916) (1,059) (682) (1,598) (2,116)
Amortisation of profit on sale 50 - 75 125 -
and leaseback transaction
National Insurance on (1,197) - 937 (260) -
stock options
Stock compensation cost (144) (634) (152) (296) (701)
Amortisation of goodwill (2,253) (1,192) (1,906) (4,159) (2,384)
Exceptional items Note (2,918) - (3,840) (6,758) -
4
Total administrative (13,930) (7,029) (11,815) (25,745) (13,902)
expenses
Total operating expenses (22,350) (11,310) (19,431) (41,781) (21,645)
Operating loss (7,325) (3,832) (5,144) (12,469) (7,454)
(Q2 2003 including acquisitions
�5,225,000)
Interest receivable and 206 276 449 655 429
similar income
Interest payable and (282) - (160) (442) (26)
similar charges
Loss on ordinary activities (7,401) (3,556) (4,855) (12,256) (7,051)
before taxation Note 1
Tax (charge)/credit on loss on (10) 87 (10) (20) 79
ordinary activities
Loss on ordinary activities after taxation
retained
for the financial period (7,411) (3,469) (4,865) (12,276) (6,972)
Weighted average number of 63,449 48,724 57,918 60,699 47,784
shares (in 000's)
Basic and diluted loss per (11.68)p (7.12)p (8.40)p (20.22)p (14.59)p
share
* The presentation of turnover has changed during 2002. See Note 1 for details.
CONSOLIDATED BALANCE As Restated(1)
SHEETS
30-Jun-03 30-Jun-02 31-Mar-03
�'000 �'000 �'000
(unaudited) (unaudited) (unaudited)
[Prepared in accordance with UK
GAAP]
FIXED ASSETS
Intangible assets 55,720 13,236 58,602
Tangible assets 10,916 5,199 11,351
66,636 18,435 69,953
CURRENT ASSETS
Debtors 15,177 8,808 15,342
Cash at bank and in hand 56,060 24,723 48,690
71,237 33,531 64,032
CREDITORS: amounts falling due within one (73,259) (32,741) (63,543)
year
NET CURRENT (LIABILITIES)/ASSETS (2,022) 790 489
TOTAL ASSETS LESS CURRENT 64,614 19,225 70,442
LIABILITIES
CREDITORS: amounts falling due after more (16,441) - (16,389)
than one year
PROVISIONS FOR LIABILITIES AND (2,053) (635) (856)
CHARGES
NET ASSETS 46,120 18,590 53,197
CAPITAL AND RESERVES
Called up share capital 8,903 6,982 8,876
Share premium account 113,188 73,402 112,933
Merger reserve 2,194 2,194 2,194
Shares to be issued 19,570 18,587 19,635
Profit and loss account (97,735) (82,575) (90,441)
EQUITY SHAREHOLDERS' FUNDS 46,120 18,590 53,197
(1)Provisions for liabilities and charges have been reclassified from within
creditors due within one year for results
at 30 June 2002.
CONSOLIDATED CASH FLOW Quarter Quarter Quarter Half year Half year
STATEMENT
ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
[Prepared in accordance �'000 �'000 �'000 �'000 �'000
with UK GAAP]
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Net cash inflow/(outflow) 9,091 1,576 (10,276) (1,185) 4,995
from operating activities
Returns on investment and
servicing of finance
Interest received 206 276 449 655 429
Interest paid (232) (19) (160) (392) (45)
Net cash flow from returns on
investment and
servicing of finance (26) 257 289 263 384
Overseas tax paid (131) - (31) (162) -
Capital expenditure and
financial investment
Payments to acquire (1,687) (217) (784) (2,471) (1,135)
tangible fixed assets
Net cash flow from capital
expenditure and
financial investment (1,687) (217) (784) (2,471) (1,135)
Acquisitions
Payment to acquire - - (40,409) (40,409) -
subsidiary
Net cash/(overdraft) - - 34,706 34,706 -
acquired with subsidiary
- - (5,703) (5,703) -
Net cash inflow/(outflow) 7,247 1,616 (16,505) (9,258) 4,244
before financing
Financing
Issue of ordinary shares 336 50 29,005 31,089 50
net of expenses
Capital element of finance (38) (200) (161) (199) (450)
lease repayments
New finance leases - - 123 123 -
Loan received net of - - 14,360 14,360 -
expenses
Expenses of issue of OSC - - - (1,748) -
Net cash flow from 298 (150) 43,327 43,625 (400)
financing
Increase in cash in the 7,545 1,466 26,822 34,367 3,844
period
NOTES TO THE ACCOUNTS
1. SEGMENTAL ANALYSIS
Gross Sales (1)
Quarter Quarter Half Year Half Year
ended ended ended ended
30-Jun-03 30-Jun-02 30-Jun-03 30-Jun-02
�'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited)
UK:
Continuing
operations 46,127 46,245 96,770 89,577
Acquisitions 39,653 - 70,302 -
UK 85,780 46,245 167,072 89,577
Non UK 32,436 24,743 59,806 42,047
118,216 70,988 226,878 131,624
Turnover (gross profit) (2)
Quarter Quarter Half Year Half Year
ended ended ended ended
30-Jun-03 30-Jun-02 30-Jun-03 30-Jun-02
�'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited)
UK:
Continuing
operations 5,970 4,785 12,412 9,657
Acquisitions 5,454 - 10,205 -
UK 11,424 4,785 22,617 9,657
Non UK 3,601 2,693 6,695 4,534
15,025 7,478 29,312 14,191
Loss Before Tax Net assets/
(liabilities)
Quarter Quarter Half year Half year
ended ended ended ended As at As at
30-Jun-03 30-Jun-02 30-Jun-03 30-Jun-02 30-Jun-03 30-Jun-02
�'000 �'000 �'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
UK:
Head Office (4,168) (3,645) (5,983) (6,991) 35,923 18,518
Other
continuing
operations 1,212 32 2,731 176 4,844 1,087
Acquisitions (5,086) - (10,014) - 3,821 -
UK (8,042) (3,613) (13,266) (6,815) 44,588 19,605
Non UK 641 57 1,010 (236) 1,532 (1,015)
(7,401) (3,556) (12,256) (7,051) 46,120 18,590
(1) Gross sales is a memorandum disclosure and represents the total transaction
value of all our services and hence includes the total amount paid by customers
for the services provided by the Group, as opposed to the margin earned per the
Group's turnover definition. The Group reports total transaction value since
the Directors believe that it reflects more accurately the cash flows within
the Group. It is also a widely used measure of company size within the travel
sector.
(2) Turnover (gross profit) in the Group consists largely of the margins on
sales of discounted airfares on scheduled flights as well as other travel
products and services. The Group recognises revenue at the time the reservation
is ticketed as the customer generally does not have the ability to cancel
tickets or obtain refunds after ticketing, and all amounts payable have been
received. In cases where customers have the ability to cancel and obtain
refunds after ticketing, the Group is able to estimate its refund obligations
and such obligations are accounted for.
Turnover (gross profit) includes other travel product margins from hotel
reservations, car rental and travel insurance. Incentive income is also
received from the Group's service provider business partners and is recognised
as turnover (gross profit) on receipt, unless dependent upon monthly or
quarterly targets being achieved, in which case it is recognised over the life
of the contract. In addition, turnover (gross profit) also includes advertising
revenue earned during the period.
2. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING
ACTIVITIES
Quarter Quarter Quarter Half year Half year
ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
�'000 �'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Operating loss (7,325) (3,832) (5,144) (12,469) (7,454)
Amortisation of goodwill 2,254 1,192 1,906 4,160 2,384
Depreciation 916 1,059 682 1,598 2,116
Stock Compensation charge 145 634 152 297 701
National insurance 1,197 - (937) 260 -
relating to stock options
Amortisation of profit on (50) - (75) (125) -
sale and leaseback
transaction
Issue of shares for - - 16 16 -
non-cash consideration
Decrease/(increase) in 164 (303) (3,867) (3,703) (3,101)
debtors
Increase/(decrease) in 10,549 2,703 (7,532) 3,017 10,317
creditors
One off trading cash - - 1,118 1,118
receipt
Exchange (losses)/gains (85) 123 (120) (205) 32
Non cash exceptional items 1,326 - 3,525 4,851 -
Net cash inflow/(outflow) 9,091 1,576 (10,276) (1,185) 4,995
from operating activities
3. RECONCILIATION OF PROFORMA MEASURES
Quarter Quarter Quarter Half year Half year
ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
�'000 �'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Loss on ordinary (7,401) (3,556) (4,855) (12,256) (7,051)
activities before taxation
Add back:
Amortisation of goodwill 2,253 1,192 1,906 4,159 2,384
Stock compensation charge 145 634 152 296 701
National Insurance on 1,197 - (937) 260 -
share options
Exceptional items 2,918 - 3,840 6,758 -
Adjusted (loss)/profit (888) (1,730) 106 (783) (3,966)
before tax
Weighted average number of 63,449 48,724 57,918 60,699 47,784
shares (in 000's)
Adjusted (loss)/profit per
share, based on
adjusted (loss)/profit (1.40)p (3.55)p 0.18p (1.29)p (8.30)p
before tax
4. EXCEPTIONAL ITEMS
Q1 Q2 Total
�'000 �'000 �'000
Stock compensation charges (including 3,608 - 3,608
NI) and retirement costs
Acquisition and integration costs 232 1,712 1,944
Integration related fixed asset write - 1,206 1,206
downs
Total exceptional items charged 3,840 2,918 6,758
5. OTHER MATTERS
Accounting principles
These interim accounts have been prepared on the basis of accounting principles
as set out in the annual financial statements at 31 December 2002.
Statutory information
The financial information for the 3 month and 6 month periods ending 30 June
2003 and 2002 have neither been audited nor reviewed by the Group's auditors
and do not constitute accounts within the meaning of section 240 of the
Companies Act 1985.
The financial information for the year ended 31 December 2002 is abridged from
the statutory accounts which have been reported on by the Group's auditors,
Deloitte and Touche and which have been filed with the Registrar of Companies.
The report of the auditors thereon was unqualified and did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
SUPPLEMENTARY INFORMATION, PREPARED IN ACCORDANCE WITH US GAAP
These financial statements set out below are presented in US dollar amounts,
solely for the convenience of the reader at the rates as set out below. No
representation is made that the amounts shown could have been, or could be
converted into US dollars at that, or any other rate.
CONSOLIDATED STATEMENT OF Quarter Quarter Quarter Half year Half year
OPERATIONS
ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
[Prepared in accordance $'000 $'000 $'000 $'000 $'000
with US GAAP]
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Revenue 24,070 11,034 22,620 47,094 20,744
Operating expenses:
Marketing and sales 13,632 6,254 11,995 25,838 11,180
General and administrative 8,783 4,958 7,003 15,906 10,445
Stock compensation 17,809 7,935 (13,425) 3,988 7,967
Depreciation 1,483 1,547 1,074 2,575 3,055
Product technology and 1,745 1,097 2,173 3,959 2,120
development
Exceptional items 4,724 - 6,048 10,888 -
Total operating expenses 48,176 21,791 14,868 63,154 34,767
Operating (loss)/profit (24,106) (10,757) 7,752 (16,060) (14,023)
Other income
Interest income 334 358 558 905 578
Other - 45 150 150 41
334 403 708 1,055 619
Other expense
Interest expense (345) - (252) (601) (38)
Other (113) - - (111) -
(458) 0 (252) (712) (38)
(Loss)/profit from
continuing operations
before income taxes (24,230) (10,354) 8,208 (15,717) (13,442)
Income tax provision (16) 128 (16) (32) 115
Net (loss)/profit (24,246) (10,226) 8,192 (15,749) (13,327)
Basic and diluted weighted
average number of
shares '000 63,449 48,724 57,918 60,699 47,784
Net (loss)/profit per $(0.38) $(0.21) $0.14 $(0.26) $(0.28)
share - basic and diluted
Exchange rates used $ per 1.619 1.461 1.575 1.611 1.444
�
CONSOLIDATED BALANCE SHEETS 30-Jun-03 30-Jun-02 31-Mar-03
[Prepared in accordance with US GAAP] $'000 $'000 $'000
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 92,499 37,826 76,686
Accounts receivable, net of allowance 5,539 6,425 4,132
for doubtful accounts
Prepaid expenses 7,039 1,750 7,001
Other current assets 12,535 5,367 13,098
Total current assets 117,612 51,368 100,917
Property, plant and equipment, net 17,059 7,657 17,043
Other non-current assets 952 298 835
Goodwill, net ^ 102,754 20,280 99,074
TOTAL ASSETS 238,377 79,603 217,869
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Bank overdraft 657 1,195 902
Accounts payable 93,905 29,654 75,719
Accrued expenses and other current 27,708 21,326 24,990
liabilities
Total current liabilities 122,270 52,175 101,611
Long term liabilities 27,601 - 25,813
Shareholders' equity:
Ordinary shares of �0.14 par value - 14,688 10,682 13,980
issued and outstanding
Additional paid-in capital 217,726 124,245 190,432
Accumulated deficit (143,122) (107,780) (113,283)
Accumulated other comprehensive loss (786) 281 (684)
Total shareholders' equity 88,506 27,428 90,445
TOTAL LIABILITIES AND SHAREHOLDERS 238,377 79,603 217,869
EQUITY
Exchange rate for the period end ($ 1.650 1.530 1.575
per �)
^The purchase price allocation following the acquisition of Travelbag has yet
to be completed. Under US GAAP, this may result in the recognition of
intangible assets that will need to be amortised.
CONSOLIDATED CASH FLOW Quarter Quarter Quarter Half year Half year
STATEMENT
[US GAAP Numbers] ended ended ended ended ended
30-Jun-03 30-Jun-02 31-Mar-03 30-Jun-03 30-Jun-02
$'000 $'000 $'000 $'000 $'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Cash flows from operating
activities:
Net (loss)/profit: (24,246) (10,226) 8,192 (15,750) (13,327)
Adjustments to reconcile
net (loss)/profit
to net cash used for
operating activities:
Depreciation 1,483 1,547 1,074 2,575 3,056
Changes in :
Trade working capital 19,555 3,242 (12,999) 6,165 9,010
One off trading cash - - 1,761 1,801 -
receipt
Stock compensation 17,809 7,935 (13,425) 3,988 7,967
expense/(credit)
Net cash provided from 14,601 2,498 (15,397) (1,221) 6,706
operating activities
Cash flows from investing
activities
Capital expenditure and - (332) (63,644) (65,108) (1,652)
acquisitions
Decrease in restricted - - 5,487 5,613 -
cash
Other capital expenditure (2,731) - (1,235) (3,981) -
Net cash used in (2,731) (332) (59,392) (63,476) (1,652)
investing activities
Cash flows financing
activities:
(Decrease)/increase in (283) 383 219 (58) 1,144
bank loans and overdraft
Proceeds from issuance of 544 77 45,684 47,276 76
common stock net of
expenses
Loan received net of - - 22,617 23,137 -
expenses
Capital element of (62) - (253) (321) 515
finance lease
Net cash provided from 199 460 68,267 70,034 1,735
financing activities
Effect of exchange rates 1,602 2,392 (190) 1,846 1,481
on cash
Net increase/(decrease) 13,671 5,018 (6,712) 7,183 8,270
in cash receipts
Cash at the beginning of 78,828 32,808 28,736 29,397 29,556
the period
Cash at acquisition - - 54,662 55,919 -
Cash at the end of the 92,499 37,826 76,686 92,499 37,826
period
Exchange rate used in 1.619 1.461 1.575 1.611 1.444
calculations $ per �
Reconciliation between UK and US GAAP
For the quarter ended 30 June 2003(unaudited) �'000's
Retained loss for the period 1 April 2003 to 30 June 2003 (7,411)
Reported in the consolidated profit and loss account for the period
under UK GAAP
Amortisation of goodwill 2,253
Deferred revenue 75
Revenue (234)
Stock compensation cost (10,855)
National Insurance 1,197
Retained loss for the period 1 April 2003 to 30 June 2003 (14,975)
under US GAAP
$'000's
Loss for the period 1 April 2003 to 30June 2003 under US (24,246)
GAAP
*Translated in US $ at the average exchange rate for the 1.619
period of $1.61900 per �1
For the half year to 30June 2003 (unaudited) �'000's
Retained loss for the period 1 January 2003 to 30 June 2003 (12,276)
Reported in the consolidated profit and loss account for the period
under UK GAAP
Amortisation of goodwill 4,159
Deferred revenue 150
Revenue (234)
Amortisation of profit on sale and leaseback transaction (25)
Stock compensation cost (2,179)
National Insurance 631
Retained loss for the period 1 January 2003 to 30 June 2003 under US (9,774)
GAAP (unaudited)
$'000's
Loss for the period 1 January 2003 to 30 June 2003 under US (15,749)
GAAP (unaudited)
*Translated in US $ at the average exchange rate for the 1.611
period of $1.61122 per �1
�'000's
Shareholders' equity as reported in the consolidated balance sheet 46,120
under UK GAAP (unaudited)
Goodwill 6,555
Net assets of Carbookers Limited 43
Deferred revenue (425)
Revenue (234)
Deferral of gain on asset disposal (185)
National Insurance 1,765
Shareholders'equity as reported in the consolidated balance sheet 53,639
under US GAAP
$'000's
Shareholders' equity as reported in the consolidated balance sheet 88,506
under US GAAP
Translated in US$ at exchange rate for the period end of
$1.65000 per �1
For a description of the differences between UK GAAP and US GAAP, see the
supplementary information section in the ebookers plc Annual report and
accounts for the year ended 31 December 2002.
END