As the result of significant efficiencies realized in the Company’s cost structure as part of its turnaround plan, priceline.com said that it is now targeting a pro forma operating profit (as defined below) in the 2nd quarter 2001. Separately, priceline.com also announced that it had sold $50 million in common stock to its strategic partners, Hutchison Whampoa Limited and Cheung Kong (Holdings) Limited.
Revenue in the 4th quarter 2000 was $228.2 million, representing an increase of 34.8% over 4th quarter 1999 revenue of $169.2 million. Full-year 2000 revenue reached $1.24 billion, or 156.1% greater than the $482.4 million reported in 1999.
Pro forma gross profit for the 4th quarter 2000 was $35.1 million, a 45.4% increase over 4th quarter 1999 gross profit of $24.1 million. Pro forma gross margin for the 4th quarter 2000 was 15.4%, compared to 14.2% in 4th quarter 1999. Pro forma gross profit and gross margin exclude supplier warrant charges.
Priceline.com’s customer base increased by approximately 884,000 during the 4th quarter 2000, raising the Company’s total customer base to almost 9 million. 56% of all purchase offers received by priceline.com in the 4th quarter 2000 came from repeat customers.
Priceline.com’s pro forma net loss for the 4th quarter 2000 was $25.0 million, or $0.15 per share, before restructuring and special charges. That compares to a 4th quarter 1999 pro forma net loss of $10.0 million, or a pro forma net loss of $0.06 per share. Pro forma operating loss and net loss are stated before restructuring and special charges and exclude supplier warrant charges, option payroll taxes, stock-based compensation charges and loss on the sale of stock.
During the 4th quarter 2000, priceline.com recognized a $66.8 million charge, $37.3 million of which was non-cash for restructuring and special items in connection with the Company’s turnaround plan. These charges pertained to asset impairment associated with the Company’s decision to exit certain businesses during the 4th quarter and the closing of licensees and real estate consolidation. Other non-cash charges included an $8.6 million charge in connection with a previously announced agreement with Delta Air Lines Inc. to amend its warrants to purchase shares of priceline.com common stock and providing for surrender of 825,000 of their 5.5 million priceline.com warrants, $381,000 in other supplier warrant charges and $2.6 million due to the loss on the sale of stock holdings in LastMinute.com and LendingTree.
