Elong (NASDAQ:LONG)

First Quarter 2013 Financial Results

• Net revenues increased 42% to RMB217.4 million (US$35.0 million), compared to RMB153.2 million(US$24.3 million) in the first quarter of 2012.
• Net income for the first quarter of 2013 was RMB2.8 million, compared to net income of RMB11.9 million during the prior year quarter.
• Basic net income per ADS and diluted net income per ADS for the first quarter of 2013 were each RMB0.08 (US$0.012), compared to basic net income per ADS and diluted net income per ADS of RMB0.34 (US$0.06) in the prior year quarter.

"In Q1, we further expanded our hotel booking market share and further strengthened our brand proposition of 'Book Hotel, Use eLong'," said Guangfu Cui, Chief Executive Officer of eLong. "We are also seeing terrific growth in mobile bookings which now comprise more than 15% of our room nights. We will continue to invest in mobile and execute our mobile and online hotel strategy.

Business Outlook

eLong currently expects net revenues for the second quarter of 2013 to increase by 15% to 25% compared to the second quarter of 2012. This outlook reflects eLong's current and preliminary view, which is subject to change.

CFO Transition

Mike Doyle, eLong's Chief Financial Officer for the past four years, will be leaving the Company on May 31, 2013. "Mike has made outstanding contributions to eLong's growth and development, and we wish him continued success in his future endeavors," saidGuangfu Cui. "I am proud of the progress we have made in turning around eLong's business and in building a strong finance organization. I remain confident in eLong's future and the ability of the team to achieve our objective to become China's largest online hotel booking service provider," said Mike Doyle.

eLong has appointed Philip Yang, as Interim CFO and Chief Accounting Officer, effective June 1, 2013. Mr. Yang is currently Vice President of Finance and Financial Controller of eLong. "Philip has been a trusted leader in our finance department for nearly seven years, and I am delighted that he will now assume a larger role in the execution of our mobile and online hotel strategy. In addition, we are considering external candidates to further strengthen our finance leadership team," said Guangfu Cui.

Since joining eLong in 2006, Mr. Yang has held a number of leadership positions within eLong's Finance department, including Internal Audit Director and Financial Controller. Prior to joining eLong, Mr. Yang was a senior auditor with Deloitte Touche Tohmatsu and also previously worked at Protiviti and TOM Group Limited. Mr. Yang is a graduate of Beijing Polytechnic University with a Bachelors Degree of Business Administration and Civil Engineering. He is a PRC Certified Public Accountant and a Certified Management Accountant.

Fourth Quarter 2012

• Net revenues increased 32% to RMB208.8 million (US$33.5 million), compared to RMB158.2 million(US$25.1 million) in the fourth quarter of 2011.
• Net income for the fourth quarter of 2012 was RMB5.7 million, compared to net income of RMB15.0 million during the prior year quarter.
• Net income per ADS and diluted net income per ADS for the fourth quarter of 2012 were each RMB0.16 (US$0.02), compared to net income per ADS and diluted net income per ADS of RMB0.44 (US$0.08) in the prior year quarter.

"In a dynamic and highly competitive marketplace, eLong performed well in 2012. More and more customers trust eLong to fulfill their hotel booking and travel needs, and we are also now increasingly seen as an innovator in the online travel market through our broad hotel coverage, market-leading hotel groupbuy business and outstanding mobile apps. Our online hotel strategy is bearing fruit and we will continue our focused execution with an increased emphasis on mobile in 2013," said Guangfu Cui, Chief Executive Officer of eLong.

Business Outlook

eLong currently expects net revenues for the first quarter of 2013 to increase by 20% to 30% compared to the first quarter of 2012. This outlook reflects eLong's current and preliminary view, which is subject to change.

Third Quarter Results

• Net revenues  increased 20% to RMB197.3 million (US$31.4 million), compared to RMB164.3 million (US$25.8 million) in the third quarter of 2011.
• Net loss for the third quarter of 2012 was RMB33.1 million, compared to net income of RMB9.4 million during the prior year quarter.
• Net loss per ADS and diluted net loss per ADS for the third quarter of 2012 were each RMB0.96 (US$0.16), compared to net income per ADS and diluted net income per ADS of RMB0.28(US$0.04) in the prior year quarter.

"In the third quarter, we launched our largest-ever marketing campaign, featuring our 'Book Hotel, Use eLong' branding and increased coupon promotions. The campaign contributed to significantly improved brand awareness and growth in our market share. It did come with a price, but we are willing to take a short-term loss for long term gain. Going forward, we will continue with our online hotel strategy, invest aggressively and drive harder," said Guangfu Cui, Chief Executive Officer of eLong.

"We are strong believers in the eLong team and their ability to grow and continue to gain share in China. We are just getting started," said Dara Khosrowshahi, President and Chief Executive Officer of Expedia

Business Outlook

eLong currently expects net revenues for the fourth quarter of 2012 to increase by 15% to 25% compared to the fourth quarter of 2011. This outlook reflects eLong's current and preliminary view, which is subject to change.

2nd Quarter Highlights

• Net revenues for the second quarter increased 33% to RMB185.0 million (US$29.1 million), compared to RMB139.1 million (US$21.5 million) in the second quarter of 2011.
• Net income for the second quarter increased to RMB16.0 million (US$2.5 million), compared to RMB7.1 million (US$1.1 million) in the prior year period.
• Net income per ADS and diluted net income per ADS for the second quarter of 2012 were each RMB0.46 (US$0.08), compared to net income per ADS and diluted net income per ADS of RMB0.26 (US$0.04) and RMB0.24 (US$0.04) respectively in the prior year quarter

"In the second quarter, eLong delivered a record high number of hotel room nights, was the clear leader in hotel group buy, and continued to gain market share in the hotel booking segment," said Guangfu Cui, Chief Executive Officer of eLong. "In the third quarter, we have launched our largest-ever marketing campaign to drive awareness of our brand, innovative products and services."

Business Outlook

eLong currently expects net revenues for the third quarter of 2012 to increase by 10% to 20% compared to the third quarter of 2011. This outlook reflects eLong's current and preliminary view, which is subject to change.

BEIJING, June 18, 2012 /PRNewswire-Asia/ -- The Executive Committee of the Board of Directors of eLong, Inc. (the "Company"), acting on behalf of the Company's Board of Directors, has approved a new share repurchase program.

Under the repurchase program, the Company may purchase ordinary shares of the Company, including American depositary shares ("ADSs"), with a total value at the time of purchase of up to US$30 million. The Company currently expects to fund the repurchases out of its cash on hand.

The repurchase program is for an indefinite period, and does not obligate the Company to purchase a particular number of shares during any period. In addition, the Company may modify, suspend or terminate the program at any time. Share repurchases may be effected in the open market and/or pursuant to privately negotiated transactions.

Share repurchases will be conducted in accordance with the applicable rules and regulations of the Securities and Exchange Commission.

Highlights - Fourth Quarter 2011

• Hotel room nights booked through eLong in the fourth quarter increased 50% to 2.6 million room nights compared to 1.7 million in the prior year period.
• Net revenues for the fourth quarter increased 27% to RMB158.2 million (US$25.1 million), compared toRMB124.1 million (US$18.8 million) in the fourth quarter of 2010.
• Net income for the fourth quarter increased to RMB15.0 million (US$2.4 million), compared to RMB4.2 million (US$0.6 million) in the fourth quarter of 2010.
• Domestic hotel coverage network expanded 48% to over 25,500 domestic hotels as of December 31, 2011, compared to 17,200 as of December 31, 2010. In addition, eLong offers almost 149,000 international hotels through a direct connection to Expedia.
• Online hotel bookings in the fourth quarter were approximately 63% of total hotel bookings, compared to 45% in the same period in 2010.
• In December 2011, monthly room nights booked through eLong's group buy channel exceeded 100,000 for the first time.
• Received China's 2011 Best Online Travel Service Provider award as selected through an online poll organized by Sohu and Ipsos.

"We continue to execute on our online hotel-focused strategy and customers are enthusiastically responding. During the quarter, we launched customer enhancements to both our award-winning online and developing mobile channels driving additional customers to our rapidly increasing supply of hotels, including over 25,500 domestic and almost 149,000 international hotels," said Guangfu Cui, Chief Executive Officer of eLong.

Third Quarter 2011 Results

• Net revenues increased 19% to RMB164.3 million (US$25.8 million), compared to RMB137.8 million (US$20.6 million) in the third quarter of 2010.
• Net income per ADS and diluted net income per ADS for the third quarter of 2011 were RMB0.28 (US$0.04), compared to net income per ADS and diluted net income per ADS for the prior year quarter of RMB0.04 (US$0.01).

"Our customers continue to respond strongly to our market leading hotel network of over 23,000 domestic hotels and 145,000 international hotels, our easy-to-use hotel website and mobile applications and our competitive prices. In addition, we continue to drive innovation in the travel sector through our Group Buying and Last-Minute hotel offerings," said Guangfu Cui, Chief Executive Officer of eLong. "I am also pleased to report that approximately sixty percent of our hotel customers now book online at eLong.com and through our mobile applications."

First Quarter Results:

• Net revenues for the first quarter increased 23% to RMB124.5 million (US$19.0 million), compared to RMB101.1 million (US$14.8 million) in the first quarter of 2010.
• Income from operations for the first quarter increased 111% to RMB13.2 million (US$2.0 million), compared to RMB6.3 million (US$0.9 million) in the prior year period. Operating margin was 10.6% compared to 6.2% in the first quarter of 2010.
• Net income for the first quarter increased 30% to RMB7.7 million (US$1.2 million), compared to RMB5.9 million (US$0.9 million) in the first quarter of 2010.

"In the first quarter, eLong accelerated the growth of its core online hotel business. We were pleased to see nearly half of our customers now choosing to book hotel online. We expect our hotel online bookings will for the first time exceed our call center bookings in the second quarter. This is a great milestone for both eLong's online hotel booking strategy and China's online travel industry! We also continued to drive product innovation with our next generation iPhone application which is currently in the Top 10 travel downloads in China's iTunes App Store," said Guangfu Cui, Chief Executive Officer of eLong.

• Net income per ADS and diluted net income per ADS for the first quarter of 2011 were RMB0.32 (US$0.04) and RMB0.30 (US$0.04) respectively, compared to net income per ADS and diluted net income per ADS for the prior year quarter of RMB0.26 (US$0.04) and RMB0.24 (US$0.04) respectively.

Fourth Quarter Results:

• Net revenues for the fourth quarter increased 23% to RMB124.1 million (US$18.8 million), compared to RMB100.9 million (US$14.8 million) in the fourth quarter of 2009.
• Income from operations for the fourth quarter increased to RMB12.6 million (US$1.9 million), compared to RMB2.4 million (US$0.3 million) in the prior year period. 
• Net income increased to RMB4.2 million (US$0.6 million), compared to RMB1.0 million (US$0.1 million) in the fourth quarter of 2009.
• Net income per ADS and diluted net income per ADS for the fourth quarter of 2010 were RMB0.18 (US$0.02) and RMB0.16 (US$0.02) respectively, compared to both net income per ADS and diluted net income per ADS of RMB0.04 (US$0.01) in the prior year quarter.
• Adjusted diluted net income per ADS for the fourth quarter of 2010 were US$0.04 and RMB0.16 (US$0.02)compared to $0.01 in the prior year quarter.

Guidance:

eLong currently expects net revenues for the first quarter of 2011 to be within the range of RMB111 million to RMB121 million, equal to an increase of 10% to 20% compared to the first quarter of 2010.

"In 2010, eLong really accelerated the growth of its core online hotel business. Room night growth was 49% year-on-year as our customers welcomed the real savings available from our coupon program, and our expanded hotel coverage network of over 17,200 domestic and 130,000 international hotels. We were also pleased to see the positive customer response to our much improved website booking experience with over 45% of our customers now choosing to book online," said Guangfu Cui, Chief Executive Officer of eLong.

Highlights - Third Quarter 2010

• Net revenues increased 42% to RMB137.8 million, compared to RMB97.2 million in the third quarter of 2009.

• Income from operationsincreased 104% to RMB12.0 million, compared to RMB5.9 million in the third quarter of 2009. Operating margin was 8.7% compared to 6.1% in the third quarter of 2009.

• Net income for the third quarter of 2010 wasRMB1.2 million, compared to net income of RMB7.5 millionduring the prior year quarter.

• Net income per ADS and diluted net income per ADS for the third quarter of 2010 were RMB0.04, compared to net income per ADS and diluted net income per ADS for the prior year quarter of RMB0.32 and RMB0.30, respectively.

• Non-GAAP per ADS was $0.60 vs. $0.42

Business Outlook

eLong currently expects net revenues for the fourth quarter of 2010 to be within the range of RMB116 million to RMB126 million, equal to an increase of 15% to 25% compared to the fourth quarter of 2009.