-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, On6fmMB14ugaNLX+h/4KEUTnkAwtXhQsqmCHEgXT6FpTHalWMIPuSi4bNF427CUp FbXUOyi5JV2aoszhcxbWQw== 0001005477-02-000914.txt : 20020414 0001005477-02-000914.hdr.sgml : 20020414 ACCESSION NUMBER: 0001005477-02-000914 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020226 ITEM INFORMATION: FILED AS OF DATE: 20020226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICELINE COM INC CENTRAL INDEX KEY: 0001075531 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 061528493 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25581 FILM NUMBER: 02558706 BUSINESS ADDRESS: STREET 1: 800 CONNECTICUT AVE CITY: NORWALK STATE: CT ZIP: 06854 BUSINESS PHONE: 2037053000 8-K 1 d02-36288.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 26, 2002 priceline.com Incorporated - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-25581 06-1528493 - -------------------------------------------------------------------------------- (State or other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 800 Connecticut Avenue, Norwalk, Connecticut 06854 - -------------------------------------------------------------------------------- (Address of principal office) (zip code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 9. REGULATION FD DISCLOSURE. On February 26, 2002, priceline.com presented the attached materials at the CIBC World Markets Annual Gaming, Lodging & Leisure Conference in New York, New York. The information set forth above is qualified in its entirety by reference to priceline.com's presentation materials which are attached hereto as Exhibit 99.1 and incorporated herein by reference. EXHIBITS. 99.1 Presentation materials presented at the CIBC World Markets Annual Gaming, Lodging & Leisure Conference in New York, New York on February 26, 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PRICELINE.COM INCORPORATED By: /s/ Jeffery H. Boyd ------------------------------- Name: Jeffery H. Boyd Title: President Date: February 26, 2002 EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Presentation materials presented at the CIBC World Markets Annual Gaming, Lodging & Leisure Conference in New York, New York on February 26, 2002. EX-99.1 3 ex99-1.txt PRESENTATION MATERIALS [CLIP ART] - -------------------------------------------------------------------------------- [LOGO]priceline.com(R) CIBC World Markets Annual Gaming, Lodging & Leisure Conference ------------------------------------------- February 26, 2002 - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 1 All Right Reserved. 2/26/2002 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- PRICELINE.COM WOULD LIKE TO REMIND YOU THAT THIS PRESENTATION MAY CONTAIN FORWARD LOOKING STATEMENTS, WHICH ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT; THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED, IMPLIED OR FORECASTED IN ANY SUCH FORWARD-LOOKING STATEMENTS. EXPRESSIONS OF FUTURE GOALS AND SIMILAR EXPRESSIONS INCLUDING, WITHOUT LIMITATION, "MAY," "WILL," "SHOULD," "COULD," "EXPECTS," "DOES NOT CURRENTLY EXPECT," "PLANS," "ANTICIPATES," "BELIEVES," "ESTIMATES," "PREDICTS," "POTENTIAL," "TARGETS," OR "CONTINUE," REFLECTING SOMETHING OTHER THAN HISTORICAL FACT ARE INTENDED TO IDENTIFY FORWARD LOOKING STATEMENTS. THE FOLLOWING FACTORS, AMONG OTHERS, COULD CAUSE PRICELINE.COM'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS: ADVERSE CHANGES IN GENERAL MARKET CONDITIONS FOR LEISURE AND OTHER TRAVEL PRODUCTS AS THE RESULT OF RECENT TERRORIST EVENTS, HOSTILITIES OR OTHER SIMILAR OR RELATED EVENTS; ADVERSE CHANGES IN PRICELINE.COM'S RELATIONSHIPS WITH AIRLINES AND OTHER PRODUCT AND SERVICE PROVIDERS; SYSTEMS-RELATED FAILURES AND/OR SECURITY BREACHES; THE EFFECTS OF INCREASED COMPETITION; PRICELINE.COM'S ABILITY TO PROTECT ITS INTELLECTUAL PROPERTY RIGHTS; LOSSES BY PRICELINE.COM AND ITS LICENSEES; ANY ADVERSE IMPACT FROM NEGATIVE PUBLICITY AND NEGATIVE CUSTOMER REACTION TO SUCH PUBLICITY; LEGAL AND REGULATORY RISKS AND THE ABILITY TO ATTRACT AND RETAIN QUALIFIED PERSONNEL. FOR A DETAILED DISCUSSION OF THESE AND OTHER FACTORS THAT COULD CAUSE PRICELINE.COM'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS, PLEASE REFER TO PRICELINE.COM'S MOST RECENT FORM 10-Q, FORM 10-K AND FORM 8-K FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. UNLESS REQUIRED BY LAW, PRICELINE.COM UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 2 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- PRODUCTS o Travel -- Airline Tickets -- Hotel Rooms -- Rental Cars -- Vacations -- Cruises o Non - Travel -- Home Finance -- Telecom -- New Cars - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 3 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- HISTORICAL RESULTS: POST-IPO QUARTERLY PERFORMANCE [BAR CHART OMITTED] - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 4 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: BRAND o Powerful Brand Awareness: Top 5 Internet Brand [LOGO]America Online(R) [LOGO]amazon.com(R) [LOGO]priceline.com(R) [LOGO]ebay(TM) [LOGO]YAHOO! Source: Opinion Research - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 5 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: CUSTOMER BASE o 12.7 million unique customers (Q4) o Repeat offer rate grew from 55% in 4Q00 to 64% in 4Q01 o Over 900,000 new customers acquired on average per quarter over the last twelve months - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 6 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: BUSINESS MODEL o Compelling Value Proposition -- Savings ranging 20-80% off published prices - the best prices and availability on the Net CUSTOMER CHOOSES PRICELINE CHOOSES ---------------- ----------------- Itinerary date Airline (majors only) AIR Price Time of day (no redeye) Circuity (1 connection only) Itinerary date HOTEL Location by zone Hotel property Star level - upgrade Price Itinerary date Rental car company RENTAL CAR Specific pick up location - upgrade Car type Price -- Name Your Own Price model shields suppliers - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 7 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: BUSINESS MODEL o Margin Structure -- Priceline earns higher margins than online or offline agents -- Margin structure protected by Name Your Own Price model -- Priceline model and allocation system protect airline retail pricing and provides incremental revenue/profits at competitive yields - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 8 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: SUPPLIER NETWORK o Broadest supplier participation in all products o Priceline reflects meaningful scale to suppliers - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 9 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- KEY STRENGTHS: EFFICIENT COST STRUCTURE o Fixed costs run at $20 million / quarter, including $4 million of D&A -- Includes consolidation of Europe o 16.5% + gross margin o Variable costs normally run at 5-6% of revenues o Efficient customer acquisition costs (Advertising Cost / New Customer) -- $8.65 Q4 o $6.2 million of Proforma EBITDA in Q4 o Favorable cash flows due to working capital cycle - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 10 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- NEW PRODUCTS o Name Your Own Price Vacations o Cruises o eBay - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 11 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- PRICELINE VACATIONS "BUILD YOUR OWN VACATION, NAME YOUR OWN PRICE" [GRAPHIC OMITTED] PRICELINE.COM VACATIONS IS AN ATTRACTIVE PRODUCT EXTENSION OPPORTUNITY, OFFERING: Entry into the $1.4B online packaged vacation market - Higher revenue/sale - Higher margins Operating leverage from priceline's core product - Limited capital expenditure - Built on strength of existing supplier relationships Enhancement of priceline's key brand attributes - Maintains/supports ownership of "Best Deal" - Broadens brand appeal - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 12 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- PRICELINE HOME FINANCE o Priceline Mortgage: JV between Priceline (49%) / First Alliance Bank (51%) -- Best rates and closing costs available (guaranteed) -- Float down protection and loan-level pricing -- No tradeoffs -- Impressive growth with limited marketing support -- Contributed $517K in income in Q4 o Online mortgage penetration gaining consumer acceptance: 1% in 1999; 15% in 2003(1) (1) Source: Morgan Stanley Research - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 13 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- MARKETING OPPORTUNITIES o Existing Customer Base o Online Marketing - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 14 All Right Reserved. 12/21/01 [LOGO]priceline.com(R) [CLIP ART] - -------------------------------------------------------------------------------- PRICELINE OUTLOOK o MARKET OUTLOOK -- TRAVEL INDUSTRY -- ONLINE TRAVEL o BRAND o BUSINESS MODEL o SCALE AND EFFICIENCY o ABILITY TO MANAGE THROUGH CHANGE o OPPORTUNITIES -- VACATIONS / CRUISES -- EBAY -- ONLINE MARKETING - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 15 All Right Reserved. 12/21/01 [CLIP ART] - -------------------------------------------------------------------------------- [LOGO]priceline.com(R) - -------------------------------------------------------------------------------- CONFIDENTIAL INFORMATION o Property of priceline.com incorporated. Page 16 All Right Reserved. 2/26/2002 -----END PRIVACY-ENHANCED MESSAGE-----