10-QPeriod: Q2 FY2005

Expedia Group, Inc. Quarterly Report for Q2 Ended Jun 30, 2005

Filed August 12, 2005For Securities:EXPE

Summary

Expedia, Inc. has filed its initial 10-Q report following its spin-off from IAC/InterActiveCorp, which was completed on August 9, 2005. This report provides a snapshot of the company's financial position as of June 30, 2005, and combined financial data for the periods ending June 30, 2005 and 2004. Investors should note that the financial statements are presented on a "combined" basis, reflecting the historical financial position and results of the Expedia businesses as they existed under IAC's ownership, rather than as a standalone entity. The report highlights significant revenue growth and positive operating income, indicating a strong operational performance prior to its independent trading.

Key Highlights

  • 1Expedia, Inc. completed its spin-off from IAC/InterActiveCorp on August 9, 2005, and now trades independently on the Nasdaq under the symbol "EXPE."
  • 2The balance sheet as of June 30, 2005, shows total assets of $100 for the newly incorporated entity, which represents initial capitalization.
  • 3Combined financial data indicates robust revenue growth, with revenue for the six months ended June 30, 2005, reaching $1,040,053 thousand, up from $900,221 thousand in the prior year.
  • 4Operating income has also shown significant improvement, growing from $90,199 thousand for the six months ended June 30, 2004, to $162,704 thousand for the same period in 2005.
  • 5Net income has seen a substantial increase, from $61,261 thousand in the first six months of 2004 to $121,461 thousand in the first six months of 2005.
  • 6The company has a strong positive net cash flow from operating activities, demonstrating its ability to generate cash from its core business operations.
  • 7The report emphasizes that the combined financial data does not necessarily reflect Expedia's future financial position or what its historical results would have been as a standalone company.

Frequently Asked Questions

The 'combined financial data' presents the historical financial position, results of operations, and cash flows of the Expedia businesses as they existed under IAC's ownership. It is presented on a combined, rather than consolidated, basis because as of June 30, 2005, no direct ownership relationship existed among all the businesses that would comprise Expedia, Inc. post-spin-off. This means the data reflects historical performance but may not perfectly represent what Expedia's financials would have looked like as a standalone company.

Expedia, Inc. officially became an independent public company on August 9, 2005, when the spin-off from IAC/InterActiveCorp was completed prior to the start of trading. The company began trading on The Nasdaq Stock Market under the symbol 'EXPE' on that date.

Yes, the report notes that the financial data for 2005 includes the results of eLong, Inc. since January 2005 (due to a majority interest acquisition) and Premier Getaways since its acquisition on February 16, 2005. For 2004, the data includes Activity World, Egencia, and TripAdvisor, Inc. from their respective acquisition dates.

The initial balance sheet for Expedia, Inc., as of June 30, 2005, shows it was newly incorporated with $100 in cash and $100 in total stockholder's equity, representing the initial capitalization upon its incorporation as a Delaware corporation in April 2005.