ebookers delivers profitability and announces strong October trading
3 November 2003 - ebookers plc (Nasdaq - EBKR, LSE - EBR) the No.1 online
pan-European retail leisure specialist, today announces its financial results
for Quarter 3, ended 30 September 2003.
Quarter 3 Highlights (UK GAAP)
* Adjusted profit before tax of �1.3m(1)(Q3 2002 adjusted loss before tax �
0.8m).
* Gross sales rise 86% to �144.8m (Q3 2002 - �77.9m).
* Turnover (gross profit) rises 98% to �18.2m (Q3 2002 - �9.2m).
* Margin(2) improves to 12.6% (Q3 2002 11.8%) due to increasing non-air
sales.
* Loss after tax �3.0m (Q3 2002 �2.0m).
* $10m investment in India BPO, Tecnovate.
* New senior management in key business areas - technology, CRM, non-air
sales.
Dinesh Dhamija, CEO, ebookers plc comments:
"We have enjoyed a strong period of trading in October. We have significantly
strengthened both our management team and technology during the quarter and
look forward to the future with confidence."
Nigel Addison Smith, CFO, ebookers plc comments:
"We welcome the achievement of underlying profitability1 for the quarter. We
are benefiting from an improving margin, a reduction in our cost base, and
rapidly increasing on-line sales in Travelbag."
1 Before amortisation, all stock compensation related costs, and exceptional
items. See note 3.
2 Margin defined as turnover (gross profit) as a percentage of gross sales.
Chairman's Statement
ebookers delivered an adjusted profit before tax1 of �1.3m in Quarter 3,
despite difficult trading circumstances in the beginning of the quarter, as
reported in our trading statement of 2nd October.
Travelbag acquisition
The conversion of Travelbag to internet sales channels and to an internet
growth culture continues to make rapid progress. By October, 44% of Travelbag's
passenger bookings were internet-based compared to 16% when ebookers acquired
the company in January. Travelbag is making a strong contribution to our
trading performance. In October, Travelbag's passenger bookings were 58% up on
the same period last year driven by strong online sales and good growth in
bookings to Australia.
India BPO
This October we announced an investment of $10m in Tecnovate, our India BPO, by
Kipotechniki BVBA, a Belgian-registered subsidiary of Mikal Ltd. This
investment, for a 6.25% stake, would equate to a value for the whole of the BPO
operation of $160m, even at this early stage. The investment will be accounted
for in our Quarter 4 2003 financial results. Tecnovate is currently in
negotiation with several major third parties potentially to become its first
clients.
Non-air sales and technology
Our hotel, car and insurance margins can be between two and four times our
margins on flights, while at the same time offering significant discounts to
customers. In Quarter 3, 36% of turnover (gross profit) was derived from
non-air products, as compared to 31% in the same quarter of 2002. Our overall
margin has increased from 11.8% to 12.6% for the same period, moving towards
our target of 15%. During the period, we have made significant management
appointments and have launched new strategic initiatives aimed at driving
forward this trend.
ebookers has also invested significantly in technology in the quarter to
enhance the user experience of its websites.
Strengthening of management
Over the last quarter we have strengthened senior management across key
strategic areas.
Chris Sherlock joins us to head up our non-air product sales, from BA Airmiles,
where he was responsible for car rental and the Executive Club's partnership
marketing. Simon Powell joins us with responsibility for travel insurance.
Previously he was head of UK Business Development with Mondial Assistance (one
of the world's largest travel insurance and assistance company and part of the
Allianz group). Kevin Hall joins us with responsibility for car sales.
Previously he was with Alamo National as Director of Global Sales.
Yashish Dahiya has been appointed Head of CRM, joining us from Bain & Co having
previously played a lead role in implementing a CRM system for a major
international mobile telecommunications company. First stages of the
E.piphany-powered CRM implementation are already complete.
We have appointed Obi Nwosu as Head of E-Solutions. Obi joins ebookers from his
previous position as General Manager for Dremedia, a division of Autonomy. Obi
has also been in Head of Development roles for the Stationery Office (Formerly
HMSO) and Deputy CTO and Chief Application Architect for QXL Ricardo. Philip
Dale, formerly CIO of ebookers, has left the company to pursue other
opportunities.
Financial statement
Gross sales were �144.8m in Quarter 3 2003 compared to �77.9m in Quarter 3
2002, an increase of 86%. Turnover (gross profit) increased 98% year on year to
�18.2m. The Group saw strong sales in
the quarter to Asia and Australia, including travellers to the Rugby World Cup.
Parts of the business that performed particularly well included subsidiaries in
the Nordic region, Germany, Switzerland and Ireland. Travelbag also delivered
very encouraging sales growth, benefiting from its conversion to online sales
channels.
Another positive development during Quarter 3, 2003 was the effect of increased
non-air sales and their impact on margins. Overall margin2 increased to 12.6%
in Q3 2003 (Q3 2002: 11.8%). Turnover (gross profit) from non-air products
accounted for approximately 36% of turnover in Quarter 3 2003 compared to 31%
in Quarter 3 2002.
Quarter 3 2003 adjusted operating expenses3 were �17.0m compared to �10.2m in
Quarter 3 2002. This increase was due primarily to the effect of Travelbag on
the enlarged business. Our cost base (adjusted operating costs as a percentage
of gross sales) reduced from 13.0% in Quarter 3 2002 to 11.8% in Quarter 3
2003.
Adjusted profit before tax1 was �1.3m in Quarter 3 2003. This compares to an
adjusted loss before tax1 of �0.8m in Quarter 3 2002.
Loss after tax for Quarter 3 2003 was �3.0m compared to �2.0m in Quarter 3
2002. In Quarter 3 2003 goodwill amortisation was �2.3m compared to �1.2m in Q3
2002, the increase due to the acquisition of Travelbag Holdings in February
2003. Stock compensation charges were �0.4m in Quarter 3 2003 while there were
no charges in Quarter 3 2002. Exceptional items were �993,000 in Quarter 3 2003
while there were no exceptional items in Quarter 3 2002. The exceptional item
in Quarter 3 2003 (including National Insurance of �113,000) relates to a
one-off award to Tani Dhamija, Executive Director. This was in recognition of
her valuable contribution to the restructuring of the UK operations after the
acquisition of Flightbookers and also her valuable contribution to the company
in the establishment of the Tecnovate India BPO operations. (This is
illustrated by the $10m investment made in October 2003 in Tecnovate for 6.25%
of its enlarged share capital, which would equate to a value for the whole
operation of $160m.) In May 2002, the Remuneration Committee recommended the
grant of share options to Tani Dhamija of 1.5% of the share capital of the
company, on the same terms as those already granted to Dinesh Dhamija and
Sanjiv Talwar, as far as possible. These were not granted at that time as the
company decided to take external advice on this recommendation. Subsequently,
on the basis of this advice, the Remuneration Committee has now concluded that
the most appropriate way to satisfy this historical recommendation is no longer
through the grant of options but through a one-off cash award. This cash award
is significantly less than the value of the options originally recommended. The
award will not be paid immediately but will be paid at a time which is
appropriate having regard to the cash flows of the company and similar
considerations.
Quarter 3 2003 saw a significant strengthening of our cash position to �65m, up
from �56m at the end of Quarter 2 2003.
Current trading
We have enjoyed a strong period of trading in October.
Outlook
With the integration of Travelbag now substantially completed, its continuing
successful conversion to online sales, our long and mid haul positioning,
strengthened management, and the roll-out of new CRM and non-air projects,
ebookers believes that it is very well positioned for future growth and
profitability.
--ends--
1 Before amortisation, all stock compensation related costs and exceptional
items.
2 Margin defined as turnover (gross profit) as a percentage of gross sales.
3 Sales and marketing costs, technology costs, general administrative expenses,
depreciation and amortisation of the profit on a sale and leaseback
transaction.
Please see note 3 for schedule of proforma adjusted financial measures
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
Webcast and conference call
When: Monday 3 November 2003 at 16:00 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/20031103/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 542 300
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: 588281#
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 PROFIT AND LOSS ACCOUNT Quarter Quarter Quarter
ended ended ended
30-Sep-03 30-Sep-02 30-Jun-03
[Prepared in accordance with �'000 �'000 �'000
UK GAAP]
(unaudited) (unaudited) (unaudited)
GROSS SALES Note 1 144,825 77,949 118,216
(Q3 2003 including
acquisitions: �61,901,000)
Turnover (gross profit) Note 1 18,203 9,216 15,025
(Q3 2003 including
acquisitions: �8,431,000)
Distribution costs: (Q3 2003 including
acquisitions: �4,071,000)
Sales and marketing (8,814) (4,629) (8,420)
Administrative expenses: (Q3 2003 including
acquisitions: �3,856,000)
Technology costs (1,231) (716) (1,077)
General administrative (6,106) (3,717) (5,475)
expenses
Depreciation (869) (1,100) (916)
Amortisation of profit on sale and leaseback - - 50
transaction
National Insurance on stock (676) - (1,197)
options
Stock compensation (358) - (144)
cost
Amortisation of (2,257) (1,192) (2,253)
goodwill
Exceptional items Note 4 (993) - (2,918)
Total administrative expenses (12,490) (6,725) (13,930)
Total operating expenses (21,304) (11,354) (22,350)
Operating loss (3,101) (2,138) (7,325)
(Q3 2003 including acquisitions: profit of �
504,000)
Interest receivable and 340 261 206
similar income
Interest payable and similar (268) (84) (282)
charges
Loss on ordinary activities Note 1 (3,029) (1,961) (7,401)
before taxation
Tax charge on loss on (14) (8) (10)
ordinary activities
Loss on ordinary activities after taxation
retained
for the financial period (3,043) (1,969) (7,411)
Weighted average number of shares (in 000's) 64,293 49,874 63,449
Basic and diluted loss per (0.05)p (0.04)p (11.68)p
share
CONSOLIDATED BALANCE As Restated
SHEETS *
30-Sep-03 30-Sep-02 30-Jun-03 31-Dec-02
�'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (audited)
[Prepared in accordance with UK
GAAP]
FIXED ASSETS
Intangible assets 53,463 12,044 55,720 10,279
Tangible assets 11,486 4,178 10,916 3,816
64,949 16,222 66,636 14,095
CURRENT ASSETS
Debtors 19,041 9,155 15,177 6,107
Cash at bank and in 65,007 26,193 56,060 21,729
hand
84,048 35,348 71,237 27,836
CREDITORS: amounts falling due within (86,714) (33,999) (73,259) (26,307)
one year
NET CURRENT (LIABILITIES)/ (2,666) 1,349 (2,022) 1,529
ASSETS
TOTAL ASSETS LESS CURRENT 62,283 17,571 64,614 15,624
LIABILITIES
CREDITORS: amounts falling due after (15,088) - (16,441) -
more than one year
PROVISIONS FOR LIABILITIES AND (2,659) (635) (2,053) (1,770)
CHARGES
NET ASSETS 44,536 16,936 46,120 13,854
CAPITAL AND RESERVES
Called up share 9,028 6,982 8,903 7,009
capital
Share premium account 114,151 73,402 113,188 73,778
Merger reserve 2,194 2,194 2,194 2,194
Shares to be issued 17,475 18,587 19,570 19,080
Profit and loss (98,312) (84,229) (97,735) (88,207)
account
EQUITY SHAREHOLDERS' 44,536 16,936 46,120 13,854
FUNDS
* Provisions for liabilities and charges have been reclassified from within
creditors due within one year for results
at 30 September 2002.
CONSOLIDATED CASH FLOW STATEMENT Quarter Quarter Quarter
ended ended ended
30-Sep-03 30-Sep-02 30-Jun-03
[Prepared in accordance with UK GAAP] �'000 �'000 �'000
(unaudited) (unaudited) (unaudited)
Net cash inflow from Note 2 9,535 1,959 9,091
operating activities
Returns on investment and servicing of
finance
Interest received 340 261 206
Interest paid (247) (84) (232)
Net cash flow from returns on
investment and
servicing of finance 93 177 (26)
Overseas tax paid (14) (8) (131)
Capital expenditure and financial
investment
Payments to acquire tangible fixed (1,867) (79) (1,687)
assets
Proceeds from sale of tangible fixed 500 - -
assets
Net cash flow from capital
expenditure and
financial investment (1,367) (79) (1,687)
Net cash inflow before financing 8,247 2,049 7,247
Financing
Issue of ordinary shares net of 1,089 - 336
expenses
Capital element of finance lease (26) (417) (38)
repayments
Net cash flow from 1,063 (417) 298
financing
Increase in cash in the 9,310 1,632 7,545
period
NOTES TO THE ACCOUNTS
1. SEGMENTAL ANALYSIS
Gross Sales1 Turnover (gross profit)
2
Quarter Quarter Quarter Quarter
ended ended ended ended
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
�'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited)
UK 108,897 50,599 13,917 5,698
Non UK 35,928 27,350 4,286 3,518
144,825 77,949 18,203 9,216
Profit/(Loss) before Net assets
tax
Quarter Quarter
ended ended As at As at
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
�'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited)
UK:
Head (5,765) (3,851) 34,023 12,527
Office
Other 1,632 1,026 6,332 1,738
UK (4,133) (2,825) 40,355 14,265
Non UK 1,104 864 4,181 2,671
(3,029) (1,961) 44,536 16,936
(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) as earned, 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 FROM OPERATING
ACTIVITIES
Quarter Quarter Quarter
ended ended ended
30-Sep-03 30-Sep-02 30-Jun-03
�'000 �'000 �'000
(unaudited) (unaudited) (unaudited)
Operating loss (3,101) (2,138) (7,325)
Amortisation of goodwill 2,257 1,192 2,253
Depreciation 869 1,100 916
Profit on sale of fixed (72) - -
assets
Stock compensation 358 - 144
charge
National insurance relating to stock 606 - 1,197
options
Amortisation of profit on sale and - - (50)
leaseback transaction
(Increase)/decrease in (3,865) (347) 164
debtors
Increase in creditors 11,478 1,837 10,551
Exchange gains/(losses) 12 315 (85)
Non cash exceptional 993 - 1,326
items
Net cash inflow from operating activities 9,535 1,959 9,091
3. RECONCILIATION OF NON GAAP MEASURES
Quarter Quarter Quarter
ended ended ended
30-Sep-03 30-Sep-02 30-Jun-03
�'000 �'000 �'000
(unaudited) (unaudited) (unaudited)
Loss on ordinary activities before (3,029) (1,961) (7,401)
taxation
Add back:
Amortisation of 2,257 1,192 2,253
goodwill
Stock compensation 358 - 144
charge
National Insurance on share options 676 - 1,197
Exceptional items 993 - 2,918
Adjusted profit/(loss) before tax 1,255 (769) (889)
Weighted average number of shares (in 64,293 49,874 63,449
000's)
Adjusted profit/(loss) per share,
based on
adjusted profit/(loss) before tax 1.95p (1.54)p (1.40)p
Total operating (21,304) (11,354) (22,350)
expenses
Add back:
Amortisation of 2,257 1,192 2,253
goodwill
Stock compensation 358 - 144
charge
National Insurance on share options 676 - 1,197
Exceptional items 993 - 2,918
Adjusted operating expenses (17,020) (10,162) (15,838)
4. EXCEPTIONAL ITEMS
During the period, �993,000 was accrued as a one off award for the Executive
Director, Tani Dhamija. Please refer to financial statement.
In the Q2 2003 there were �2,918,000 of exceptional items. These related to
acquisition and integration costs of �1,712,000 and integration related fixed
asset write-downs of �1,206,000.
5. OTHER MATTERS
Accounting principles
These accounts have been prepared on the basis of accounting principles as set
out in the annual financial statements at 31 December 2002 In the opinion of
management, the condensed consolidated financial statements include all
adjustments (consisting only of normal recurring accruals) that management
considers necessary for a fair presentation of its financial position,
operating results and cash flows for the periods presented. All significant
intercompany accounts and transactions have been eliminated in consolidation.
Operating results and cash flows for these periods are not necessarily
indicative of results for the entire year. These financial statements and notes
should be read in conjunction with the audited consolidated financial
statements and notes included in the Company's Annual Report for the year ended
31 December 2002.
Statutory information
The financial information for the 3 month periods ending 30 September 2003 and
2002 and the 3 months ended 30 June 2003 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.
Fair value exercise
As at 30 September 2003 the fair value exercise under FRS10 relating to the
acquisition of Travelbag has yet to be completed. As such the goodwill value is
provisional and may be subject to change.
SUPPLEMENTARY INFORMATION, PREPARED IN ACCORDANCE WITH US GAAP
The financial statements for 30 September 2003 set out below are presented in
US dollar amounts, solely for the convenience of the reader at the rate 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. The year end
results will be converted at the year end exchange rate and as such the full
year may not equate to the sum of the four quarters results.
CONSOLIDATED STATEMENT OF Quarter Quarter Quarter Quarter
OPERATIONS
ended ended ended ended
30-Sep-03 30-Sep-03 30-Sep-02 30-Jun-03
[Prepared in accordance with US $'000 �'000 �'000 �'000
GAAP]
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue 30,679 18,459 9,291 14,867
Operating expenses:
Marketing and sales 14,648 8,814 4,629 8,420
General and administrative 11,715 7,049 3,717 8,344
Product technology and 2,046 1,231 716 1,077
development
Stock compensation 6,340 3,815 (2,283) 11,000
Depreciation 1,444 869 1,100 916
Total operating expenses 36,193 21,778 7,879 29,757
Operating (loss)/profit (5,514) (3,319) 1,412 (14,890)
Interest income 565 340 261 206
Other expense
Interest expense (351) (211) (29) (212)
Other (95) (57) (55) (70)
(446) (268) (84) (282)
(Loss)/profit from continuing
operations
before income taxes (5,395) (3,247) 1,589 (14,966)
Income tax provision (24) (14) (8) (10)
Net (loss)/profit (5,419) (3,261) 1,581 (14,976)
Basic weighted average number of
shares '000 64,293 64,293 49,874 63,449
Diluted weighted average number
of
shares '000 64,293 64,293 53,252 63,449
Basic Net (loss)/profit per $(0.08) �(0.05) �0.03 �(0.24)
share
Diluted Net (loss)/profit per $(0.08) �(0.05) �0.03 �(0.24)
share
Exchange rates used $ per � 1.662
CONSOLIDATED BALANCE SHEETS 30-Sep-03 30-Sep-03 30-Sep-02 30-Jun-03 31-Dec-02
[Prepared in accordance with $'000 �'000 �'000 �'000 �'000
US GAAP]
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 108,042 65,007 26,193 56,060 21,729
Accounts receivable, net of 8,039 4,838 2,967 3,357 1,327
allowance for doubtful
accounts
Prepaid expenses 7,440 4,476 589 4,266 2,406
Other current assets 16,239 9,771 5,643 7,597 2,417
Total current assets 139,760 84,092 35,392 71,280 27,879
Property, plant and 18,093 10,886 4,145 10,339 3,498
equipment, net
Other non-current assets 997 600 33 577 318
Goodwill, net^ 104,890 63,111 13,255 62,275 12,675
TOTAL ASSETS 263,740 158,689 52,825 144,471 44,370
LIABILITIES AND SHAREHOLDERS
EQUITY
Current liabilities:
Bank overdraft 58 35 619 398 434
Accounts payable 105,999 63,778 22,587 56,912 17,167
Accrued expenses and other 40,346 24,275 12,078 16,793 10,076
current liabilities
Total current liabilities 146,403 88,088 35,284 74,103 27,677
Long term liabilities 25,435 15,304 - 16,728 -
Shareholders' equity:
Ordinary shares of �0.14 par 15,004 9,028 6,982 8,902 7,009
value - issued and
outstanding
Additional paid-in capital 223,172 134,279 79,008 131,955 89,877
Accumulated deficit (145,863) (87,763) (68,512) (86,741) (79,861)
Accumulated other (411) (247) 63 (476) (332)
comprehensive loss
Total shareholders' equity 91,902 55,297 17,541 53,640 16,693
TOTAL LIABILITIES AND 263,740 158,689 52,825 144,471 44,370
SHAREHOLDERS EQUITY
Exchange rate for the period 1.662
end ($ per �)
^ As at 30 September 2003 the Purchase Price Allocation relating to the
acquisition of Travelbag Holdings by ebookers plc has not yet been finalised.
As such the fair value allocation is provisional. Under US GAAP, this may
result in the recognition of intangible assets that will need to be amortised.
CONSOLIDATED CASH FLOW STATEMENT Quarter Quarter Quarter Quarter
[US GAAP Numbers] ended ended ended ended
30-Sep-03 30-Sep-03 30-Sep-02 30-Jun-03
$'000 �'000 �'000 �'000
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flows from operating
activities:
Net (loss)/profit: (5,419) (3,261) 1,581 (14,976)
Adjustments to reconcile net
(loss)/income
to net cash used for operating
activities:
Depreciation 1,444 869 1,100 916
Stock compensation expense/ 6,340 3,815 (2,283) 11,000
(credit)
Changes in :
Trade working capital 13,596 8,180 1,743 12,079
Net cash provided from operating 15,961 9,603 2,141 9,019
activities
Cash flows from investing
activities
Other capital expenditure (3,104) (1,867) (79) (1,687)
Proceeds from sale of capital 831 500 - -
items
Net cash used in investing (2,273) (1,367) (79) (1,687)
activities
Cash flows financing activities:
(Decrease)/increase in bank loans (604) (363) (164) (175)
and overdraft
Proceeds from issuance of common 1,810 1,089 - 336
stock net of expenses
Capital element of finance lease (43) (26) (417) (38)
Net cash provided from financing 1,163 700 (581) 123
activities
Effect of exchange rates on cash 19 11 308 (84)
Net increase/(decrease) in cash 14,870 8,947 1,789 7,371
receipts
Cash at the beginning of the 93,172 56,060 24,404 48,689
period
Cash at the end of the period 108,042 65,007 26,193 56,060
Exchange rate used in calculations 1.662
$ per �
Reconciliation between UK and US GAAP
For the quarter ended 30 September 2003 �'000's
(unaudited)
Retained loss for the period 1 July 2003 to 30 September (3,043)
2003
Reported in the consolidated profit and loss account for the period
under UK GAAP
Amortisation of goodwill 2,257
Deferred revenue 256
Amortisation of profit on sale and leaseback 50
transaction
Stock compensation cost (3,457)
National Insurance 676
Retained loss for the period 1 July 2003 to 30 September 2003 (3,261)
under US GAAP
$'000's
Loss for the period 1 July 2003 to 30 September 2003 (5,419)
under US GAAP
*Translated in US $ at the average exchange rate for the period 1.662
of $1.662 per �1
�'000's
Shareholders' equity as reported in the consolidated balance sheet 44,536
under UK GAAP (unaudited)
Goodwill 9,647
Net assets of Carbookers Limited 43
Deferred revenue (1,236)
Deferral of profit on sale and (135)
leaseback transaction
National Insurance 2,442
Shareholders'equity as reported in the consolidated balance sheet 55,297
under US GAAP
$'000's
Shareholders' equity as reported in the consolidated balance sheet 91,902
under US GAAP
Translated in US$ at exchange rate for the period end of
$1.662 per �1
12
END