Orbitz 2014 Annual Report Download - page 33

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33
RESULTS OF OPERATIONS
Years Ended
December 31, Increase/
(Decrease) Years Ended
December 31, Increase/
(Decrease)
2014 2013 $ % 2013 2012 $ %
(in thousands) (in thousands)
Net revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 932,007 $ 847,003 $ 85,004 10 % $ 847,003 $ 778,796 $ 68,207 9 %
Cost and expenses:
Cost of revenue. . . . . . . . . . . . . . . . . . . . . . . . 179,774 154,403 25,371 16 % 154,403 147,840 6,563 4 %
Selling, general and administrative . . . . . . . . 278,202 280,418 (2,216) (1)% 280,418 260,253 20,165 8 %
Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334,472 292,470 42,002 14 % 292,470 252,993 39,477 16 %
Depreciation and amortization . . . . . . . . . . . . 57,549 55,110 2,439 4 % 55,110 57,046 (1,936) (3)%
Impairment of goodwill and intangible
assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — ** — 321,172 (321,172) (100)%
Impairment of property and equipment
and other assets . . . . . . . . . . . . . . . . . . . . . — 2,636 (2,636) (100)% 2,636 1,417 1,219 86 %
Total operating expenses. . . . . . . . . . . . . . . . . . 849,997 785,037 64,960 8 % 785,037 1,040,721 (255,684) (25)%
Operating income/(loss) . . . . . . . . . . . . . . . . . 82,010 61,966 20,044 32 % 61,966 (261,925) 323,891 **
Other expense:
Net interest expense . . . . . . . . . . . . . . . . . . . . (35,212) (43,786) 8,574 (20)% (43,786) (36,599) (7,187) 20 %
Other expense. . . . . . . . . . . . . . . . . . . . . . . . . (2,237) (18,100) 15,863 (88)% (18,100) (41) (18,059) **
Total other expense . . . . . . . . . . . . . . . . . . . . . . (37,449) (61,886) 24,437 (39)% (61,886) (36,640) (25,246) 69 %
Net income/(loss) before income taxes. . . . . . 44,561 80 44,481 ** 80 (298,565) 298,645 **
Provision/(benefit) for income taxes. . . . . . . . . 27,281 (165,005) 192,286 ** (165,005) 3,173 (168,178) **
Net income/(loss) . . . . . . . . . . . . . . . . . . . . . . . $ 17,280 $ 165,085 $(147,805) (90)% $ 165,085 $ (301,738) $ 466,823 **
** Not meaningful.
Overall Financial Results
During the year ended December 31, 2014, we reported net income of $17.3 million, compared with net income of
$165.1 million in 2013. During the year ended December 31, 2013 we recorded a tax benefit of $165.0 million reflecting the
release of $174.4 million in valuation allowance related to our U.S. federal deferred tax assets and during the year ended
December 31, 2012 we recorded a $321.2 million charge for the impairment of goodwill and intangible assets.
Domestically, hotel, air, and car transaction volume grew in 2014 and revenue per transaction increased for air, car and
vacation packages.
Internationally, we continued to see growth in hotel and vacation package transaction volume at ebookers, partially
offset by lower air and vacation package revenue per transaction. HotelClub experienced higher year-over-year hotel
transaction volume.