Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the second quarter and six months ended June 30, 2009.
"Despite a challenging economic and travel environment, our domestic air transaction growth rate increased by 22 percentage points versus the first quarter 2009, and our dynamic packaging product continued to post strong volume growth as a result of the value we provide to customers who 'get it together and save'," said Barney Harford, President and CEO of Orbitz Worldwide. "Internationally ebookers delivered strong net revenue growth as we realize the benefits of the new global platform."
"Looking forward we recognize the central importance of the hotel business to our future strategic position," continued Harford. "We took some significant initial steps towards improving our hotel offering during the quarter by drastically cutting booking fees on hotels around the world and by launching two industry-leading innovations - Total Price hotel search results and Orbitz Hotel Price Assurance. We recognize that we face formidable competition in this space, however we believe there is still tremendous opportunity for us to improve the way customers choose and book hotels."
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Summary Operating Results
(In millions, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 Change (a) 2009 2008 Change (a)
---- ---- ---------- ---- ---- ----------
Gross bookings $2,678 $3,043 -12% $5,061 $5,918 -14%
Net revenue $188 $231 -19% $376 $450 -16%
Net income
(loss) $10 ($5) ** ($326) ($20) **
Basic and
Diluted EPS $0.12 ($0.06) ** ($3.89) ($0.24) **
Operating cash
flow ($18) $1 ** $99 $109 -10%
Capital spending $9 $14 -36% $21 $26 -21%
(a) Percentages are calculated on unrounded numbers.
(b) Non-GAAP financial measures. A definition of EBITDA and Adjusted
EBITDA and a reconciliation of these non-GAAP financial measures to
the most comparable GAAP financial measure is contained in
Appendix A.
(c) EBITDA is no longer adjusted for severance charges which were $2
million and almost nil during the three months ended June 30, 2009
and June 30, 2008, respectively, and $5 million and $1 million during
the six months ended June 30, 2009 and June 30, 2008, respectively.
Orbitz Worldwide, Inc. Reports Second Quarter 2009 Results more info...
Orbitz Worldwide, Inc. Logo. (PRNewsFoto/Orbitz Worldwide, Inc.) CHICAGO, IL UNITED STATES 08/13/2007
Aug 5, 2009 07:00 ET
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Orbitz Worldwide, Inc. Reports Second Quarter 2009 Results
- Domestic air transaction growth rate increased by 22 percentage points versus the first quarter of 2009 - Net income was $10 million for the quarter compared with a net loss of $5 million for the second quarter of 2008 - Adjusted EBITDA for the quarter was $45 million, an increase of 23 percent from the second quarter of 2008
CHICAGO, Aug. 5 /PRNewswire-FirstCall/ -- Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the second quarter and six months ended June 30, 2009.
"Despite a challenging economic and travel environment, our domestic air transaction growth rate increased by 22 percentage points versus the first quarter 2009, and our dynamic packaging product continued to post strong volume growth as a result of the value we provide to customers who 'get it together and save'," said Barney Harford, President and CEO of Orbitz Worldwide. "Internationally ebookers delivered strong net revenue growth as we realize the benefits of the new global platform."
"Looking forward we recognize the central importance of the hotel business to our future strategic position," continued Harford. "We took some significant initial steps towards improving our hotel offering during the quarter by drastically cutting booking fees on hotels around the world and by launching two industry-leading innovations - Total Price hotel search results and Orbitz Hotel Price Assurance. We recognize that we face formidable competition in this space, however we believe there is still tremendous opportunity for us to improve the way customers choose and book hotels."
Summary Operating Results
(In millions, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 Change (a) 2009 2008 Change (a)
---- ---- ---------- ---- ---- ----------
Gross bookings $2,678 $3,043 -12% $5,061 $5,918 -14%
Net revenue $188 $231 -19% $376 $450 -16%
Net income
(loss) $10 ($5) ** ($326) ($20) **
Basic and
Diluted EPS $0.12 ($0.06) ** ($3.89) ($0.24) **
Operating cash
flow ($18) $1 ** $99 $109 -10%
Capital spending $9 $14 -36% $21 $26 -21%
(a) Percentages are calculated on unrounded numbers.
(b) Non-GAAP financial measures. A definition of EBITDA and Adjusted
EBITDA and a reconciliation of these non-GAAP financial measures to
the most comparable GAAP financial measure is contained in
Appendix A.
(c) EBITDA is no longer adjusted for severance charges which were $2
million and almost nil during the three months ended June 30, 2009
and June 30, 2008, respectively, and $5 million and $1 million during
the six months ended June 30, 2009 and June 30, 2008, respectively.
"Despite a weak economy and a dramatic change in the U.S. fee landscape, we are pleased to report net income of $10 million for the second quarter of 2009, an improvement of $15 million versus last year. We delivered $45 million in Adjusted EBITDA, an increase of 23 percent over 2008, by achieving worldwide transaction growth, focusing on costs, and improving our marketing efficiency," said Marsha Williams, SVP and CFO of Orbitz Worldwide.
Net revenue was $188 million for the second quarter of 2009, down 19 percent (15 percent on a constant currency basis) from the second quarter of last year. This net revenue decline was due primarily to the removal of most air booking fees on the company's domestic sites and a decline in average hotel room rates globally. The company reported net income of $10 million or $0.12 per diluted share for the second quarter of 2009, compared with a net loss of $5 million or ($0.06) per diluted share for the same period last year. Adjusted EBITDA increased 23 percent to $45 million for the second quarter of 2009 as compared with the second quarter of 2008. Adjusted EBITDA margin increased to 24 percent for the second quarter of 2009 from 16 percent for the same quarter last year.
For the six months ended June 30, 2009, net revenue was $376 million, down 16 percent (13 percent on a constant currency basis) from the same period of 2008. This net revenue decline was due primarily to the removal of most air booking fees, a decline in average hotel room rates globally, and fewer air and hotel transactions. The company reported a net loss of $326 million or ($3.89) per diluted share for the first six months of 2009, compared with a net loss of $20 million or ($0.24) per diluted share for the same period last year. The 2009 year-to-date net loss was due primarily to a $332 million non-cash charge for the impairment of goodwill and intangible assets taken in the first quarter. Adjusted EBITDA increased 28 percent to $73 million for the six months ended June 30, 2009 compared with the same period in 2008. This year-over-year increase in Adjusted EBITDA was driven by the significant operating cost reductions made in the fourth quarter of last year and earlier this year and better returns on the company's online marketing investment.
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Gross bookings decline 14%
