Ctrip.com Intl (NASDAQ:CTRP)

Highlights for the First Quarter of 2012

• Net revenues were RMB911 million (US$145 million) for the first quarter of 2012, up 19% year-on-year, versus our guidance of 15-20% year-on-year.
• Gross margin was 75% for the first quarter of 2012, compared to 78% in the same period in 2011.
• Income from operations was RMB177 million (US$28 million) for the first quarter of 2012, down 33% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB277 million (US$44 million), down 17% year-on-year.
• Operating margin was 19% for the first quarter of 2012, compared to 34% in the same period in 2011. Excluding share-based compensation charges (non-GAAP), operating margin was 30%, compared to 44% in the same period in 2011.
• Net income attributable to Ctrip's shareholders was RMB169 million (US$27 million) in the first quarter of 2012, down 28% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB270 million (US$43 million), down 12% year-on-year.
• Diluted earnings per ADS were RMB1.11 (US$0.18) for the first quarter of 2012. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.77 (US$0.28) for the first quarter of 2012.
• Share-based compensation charges were RMB101 million (US$16 million), accounting for 11% of the net revenues, or RMB0.66 (US$0.11) per ADS for the first quarter of 2012.

"Through solid execution on our business strategies, the Ctrip team has continued outperforming the industry in the first quarter of 2012," said Min Fan, President and Chief Executive Officer of Ctrip. "In the first quarter, we strengthened all business sectors, expanded into more new business areas and intensified sales and marketing campaigns. As the industry leader, Ctrip will continuously strive to deliver the best product with the best service at the best price to our customers."

Business Outlook

For the second 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.

Highlights for the Fourth Quarter of 2011

• Net revenues were RMB926 million (US$147 million) for the fourth quarter of 2011, up 18% year-on-year.
• Gross margin was 76% for the fourth quarter of 2011, compared to 78% in the same period in 2010.
• Income from operations was RMB231 million (US$37 million) for the fourth quarter of 2011, down 21% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB325 million (US$52 million), down 8% year-on-year.
• Operating margin was 25% for the fourth quarter of 2011, compared to 37% in the same period in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 35%, compared to 45% in the same period in 2010.
• Net income attributable to Ctrip's shareholders was RMB253 million (US$40 million) in the fourth quarter of 2011, down 16% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB347 million (US$55 million), down 4% year-on-year.
• Diluted earnings per ADS were RMB1.67 (US$0.27) for the fourth quarter of 2011. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.30 (US$0.37) for the fourth quarter of 2011.
• Share-based compensation charges were RMB95 million (US$15 million), accounting for 10% of the net revenues, or RMB0.63 (US$0.10) per ADS for the fourth quarter of 2011.

"Despite a high 2010 comparison base, the Ctrip team delivered solid results in 2011. We increased our sales and marketing investment to further penetrate the leisure market during the fourth quarter," said Min Fan, President and Chief Executive Officer of Ctrip. "In 2012, Ctrip will invest further to enhance the competitive edge of each business line in order to offer the best product with the best service at the best price. Ctrip will work tirelessly to strengthen our leadership of the travel industry and rise far beyond the competition."

Business Outlook

For the first 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.

Third Quarter 2011 Results

Highlights for the Second Quarter of 2011

• Net revenues were RMB833 million (US$129 million) for the second quarter of 2011, up 20% year-on-year. In the second quarter of 2011, Wing On Travel and ezTravel together contributed 4% for the year-on-year growth for net revenues.
• Gross margin was 77% for the second quarter of 2011, compared to 78% in the same period in 2010.
• Income from operations was RMB268 million (US$42 million) for the second quarter of 2011, up 4% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB356 million (US$55 million), up 13% year-on-year.
• Operating margin was 32% for the second quarter of 2011, compared to 37% in the same period in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 43%, compared to 45% in the same period in 2010.
• Net income attributable to Ctrip's shareholders was RMB264 million (US$41 million) in the second quarter of 2011, up 12% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB351 million (US$54 million), up 20% year-on-year.
• Diluted earnings per ADS were RMB1.72 (US$0.27) for the second quarter of 2011. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.29 (US$0.35) for the second quarter of 2011.
• Share-based compensation charges were RMB87 million (US$13 million), accounting for 10% of the net revenues, or RMB0.57 (US$0.09) per ADS for the second quarter of 2011.

"We are pleased that our team has delivered solid results in the second quarter of 2011," said Min Fan, President and Chief Executive Officer of Ctrip. "We have continued to strengthen the Ctrip brand, extending our market leadership by means of enhanced systems, diversified product offerings and elevated customer service. We believe our team is well positioned for future opportunities and challenges, and we are confident that the seeds planted today will lead to a fruitful future."

First Quarter Results:

• Net revenues were RMB765 million (US$117 million) for the first quarter of 2011, up 30% year-on-year. In the first quarter of 2011, Wing On Travel and ezTravel contributed 7% for the year-on-year growth for net revenues.
• Gross margin was 78% for the first quarter of 2011, remained consistent with that in the same period in 2010.
• Income from operations was RMB263 million (US$40 million) for the first quarter of 2011, up 34% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB333 million (US$51 million), up 28% year-on-year.
• Operating margin was 34% for the first quarter of 2011, compared to 33% in the same period in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 44%, remained consistent with that in the same period in 2010.
• Net income attributable to Ctrip's shareholders was RMB235 million (US$36 million) in the first quarter of 2011, up 23% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB305 million (US$47 million), up 20% year-on-year.
• Diluted earnings per ADS were RMB1.54 (US$0.24) for the first quarter of 2011. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.01 (US$0.31) for the first quarter of 2011.

"Following a successful 2010, the Ctrip team has once again achieved strong results in the first quarter of 2011," said Min Fan, Ctrip President and Chief Executive Officer. "Our team has worked diligently to extend our leadership and further gain market share through excellent customer service, strong strategic partnerships, the adoption of advanced technologies, and innovative value-added products. All of our hard work has empowered our team to make the most of the opportunities ahead of us."

For the second quarter of 2011, 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.

Highlights for the Third Quarter of 2010

• Net revenues wereRMB812 million (US$121 million) for the third quarter of 2010, up 49% year-on-year.

• Gross margin was 78% for the third quarter of 2010, compared to 77% in the same period in 2009.

• Income from operations wasRMB308 million (US$46 million) for the third quarter of 2010, up 55% year-on-year.

• Excluding share-based compensation charges (non-GAAP), income from operations was RMB368 million (US$55 million), up 63% year-on-year.

• Operating margin was 38% for the third quarter of 2010, compared to 37% in the same period in 2009.

• Excluding share-based compensation charges (non-GAAP), operating margin was 45%, compared to 41% in the same period in 2009.

• Net income attributable to Ctrip's shareholders was RMB320 million (US$48 million) in the third quarter of 2010, up 70% year-on-year.

• Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB380 million (US$57 million), up 77% year-on-year.  Diluted earnings per ADS wereRMB2.11(US$0.31)for the third quarter of 2010.

• Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.50(US$0.37)for the third quarter of 2010. 

Business Outlook

For the fourth quarter of 2010, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 30~35%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.

Highlights for the Second Quarter of 2010:

• Net revenues were RMB695 million (US$103 million) for the second quarter of 2010, up 46% year-on-year.
  
• Gross margin was 78% for the second quarter of 2010, compared to 77% in the same period in 2009.
  
• Income from operations was RMB257 million (US$38 million) for the second quarter of 2010, up 57% year-on-year.
  
• Excluding share-based compensation charges (non-GAAP), income from operations was RMB316 million (US$47 million), up 66% year-on-year.
  
• Excluding share-based compensation charges (non-GAAP), operating margin was 45%, compared to 40% in the same period in 2009.
  
• Net income attributable to Ctrip's shareholders was RMB235 million (US$35 million) in the second quarter of 2010, up 48% year-on-year.
  
• Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB293 million (US$43 million), up 58% year-on-year.
  
• Diluted earnings per ADS were RMB1.55 (US$0.23) comared to RMB2.27 (US$0.33).  
  
• Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.93 (US$0.29) compared to RMB2.66 (US$0.39).

"We are pleased to announce solid results for the second quarter of 2010," said Min Fan, President and Chief Executive Officer of Ctrip. "Through our strong execution, we were able to extend our leadership in all business lines. Our presence in the Greater China region will enable us to provide excellent services to customers travelling abroad. The Ctrip team is well positioned to capture more opportunities in the travel industry in China."

Business Outlook:

For the third quarter of 2010, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 35-40%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.

Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures. The GeoTeam® non-GAAP figures apply a 25% and 36% tax rate for Chinese and United States companies respectively.

'We are pleased that our team once again delivered solid results in the second quarter of 2009. We strengthened our competitiveness despite the challenges that we faced during this period,' said Min Fan, Chief Executive Officer of Ctrip, 'We will continue to improve our customer service, to apply new technologies, and to broaden sales and marketing channels in order to extend our leadership.'

'I am pleased that our team delivered solid results in the first quarter despite the difficult economy,' said Min Fan, Chief Executive Officer of Ctrip. 'Our strong execution in operations and prudent controls on cost enabled us to achieve healthy growth in profit. While the business environment remains uncertain, we will extend our leadership in the China travel industry through excellent customer service, strategic alliance with our partners, advanced IT technologies and innovative sales and marketing channels.'

Guidance Report: (Non-China)

First Quarter Year 2009 Guidance Ending March

'Despite the challenges in the travel industry in China, our team delivered a solid result in 2008. We strengthened our market leadership, enhanced our vendor relationship, elevated our customer service level, improved our operation efficiency, and achieved a steady revenue and earnings growth,' said Min Fan, Chief Executive Officer of Ctrip. 'In the near term, we remain cautious about the global economy. We will prudently manage our business and capitalize the opportunities ahead of us.'

Source: PR Newswire (February 8, 2009)

GeoTeam® Comment:

It appears that the revenue Guidance is above the analyst estimates we could locate.