Orbitz Worldwide, Inc. Announces Conference Call to be Held on August 6 to
Discuss Second Quarter Results and Restatement
Company Announces Correction of Certain Financial Information
CHICAGO, Aug. 6, 2008 /PRNewswire-FirstCall/ -- Orbitz Worldwide, Inc.
(NYSE: OWW) announced that it will restate its previously issued financial
statements to correct the classification of certain intercompany transactions
with Travelport Limited ("Travelport") and credit card receipts at its foreign
operations.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM125LOGO)
This restatement affects only the company's historical consolidated
statements of cash flows and the Cash and Cash Equivalents and Accounts
Receivable line items on the company's consolidated balance sheets. It does
not affect the company's consolidated statements of operations.
The company will reclassify certain intercompany transactions with
Travelport in its consolidated statements of cash flows. The company
determined that certain non-cash intercompany payables related to interest
accrued on loans between the company and Travelport were overstated in
Operating Activities and correspondingly understated in Financing Activities
in its consolidated statements of cash flows for the interim periods ended
June 30, 2007, and September 30, 2007, and for the year ended December 31,
2007.
The company will also reclassify certain credit card receipts in its
consolidated balance sheet as of December 31, 2006, and consolidated
statements of cash flows for the years ended December 31, 2007, 2006 and 2005,
and the interim periods ended June 30, 2007, and September 30, 2007.
This restatement is a result of the company's determination that the
classification of credit card receipts in-transit at the company's
international operations was not consistent with the classification of credit
card receipts in-transit at its domestic operations. These receipts, which
generally are collected within two to three days, were classified as Cash and
Cash Equivalents by the foreign operations and as Accounts Receivable by the
domestic operations. In order to be consistent, the company has reclassified
credit card receipts in-transit from Cash and Cash Equivalents to Accounts
Receivable at its international locations.
The net impact of both of these reclassifications for the years ended
December 31, 2007, 2006 and 2005, is summarized in the table below.
Successor
Year Ended December 31, 2007
Credit
Card
Receipts
Previously in- Intercompany As
Reported transit Transactions Restated
(in millions)
Net cash provided by operating
activities $96 $10 $(37) $69
Net cash (used in) investing
activities (80) - - (80)
Net cash (used in) provided by
financing activities (24) - 37 13
Effect of exchange rate changes on
cash and cash equivalents 5 - - 5
Net (decrease) increase in cash and
cash equivalents (3) 10 - 7
Cash and cash equivalents, beginning
of period 28 (10) - 18
Cash and cash equivalents, end of
period $25 $- $- $25
Predecessor
Period from January 1, 2006 through
August 22, 2006
Credit Card
Previously Receipts As
Reported in-transit Restated
(in millions)
Net cash provided by operating
activities $126 $(5) $121
Net cash (used in) investing
activities (54) - (54)
Net cash (used in) financing
activities (70) - (70)
Effect of exchange rate changes on
cash and cash equivalents 1 - 1
Net increase (decrease) in cash and
cash equivalents 3 (5) (2)
Cash and cash equivalents, beginning
of period 33 (5) 28
Cash and cash equivalents, end of
period $36 $(10) $26
Successor
Period from August 23, 2006 through
December 31, 2006
Credit Card
Previously Receipts As
Reported in-transit Restated
(in millions)
Net cash provided by operating
activities $39 $- $39
Net cash (used in) investing
activities (29) - (29)
Net cash (used in) financing
activities (7) - (7)
Effect of exchange rate changes on
cash and cash equivalents (11) - (11)
Net (decrease) in cash and cash
equivalents (8) - (8)
Cash and cash equivalents, beginning
of period 36 (10) 26
Cash and cash equivalents, end of
period $28 $(10) $18
Predecessor
Year Ended December 31, 2005
Credit Card
Previously Receipts As
Reported in-transit Restated
(in millions)
Net cash provided by operating
activities $59 $- $59
Net cash (used in) investing
activities (474) (5) (a) (479)
Net cash provided by financing
activities 433 - 433
Effect of exchange rate changes on
cash and cash equivalents (9) - (9)
Net increase in cash and cash
equivalents 9 (5) 4
Cash and cash equivalents, beginning
of period 24 - 24
Cash and cash equivalents, end of
period $33 $(5) $28
(a) Due to the Company's acquisition of ebookers in February 2005, the
reclassification impacted net cash used in investing activities for
the fiscal year ended December 31, 2005.
Conference Call
The Company will host a conference call to discuss its second quarter 2008
financial results, as well as this press release and the Form 8-K related to
the restatement of its financial statements, today (August 6) at noon EDT
(11:00 a.m. CDT). A live webcast of the call can be accessed through the
Orbitz Worldwide Investor Relations website at http://orbitz-ir.com. The
company will issue a press release reporting its results prior to the call.
An archive of the webcast can be accessed through the Orbitz Worldwide
Investor Relations website for a period of at least 30 days after the
conference call, and an MP3 file of the call will be available to download
from the site. A transcript of the call will be posted under Webcasts &
Presentations on the site.
About Orbitz Worldwide
Orbitz Worldwide (corp.orbitz.com) is a leading global online travel
company that uses innovative technology to enable leisure and business
travelers to research, plan and book a broad range of travel products offered
by over 75,000 suppliers worldwide. Orbitz Worldwide owns and operates a
portfolio of consumer brands. In the U.S., those brands include Orbitz
(http://www.orbitz.com) and CheapTickets (http://www.cheaptickets.com), a
leading online site for discounted leisure travel products. Orbitz Worldwide's
international brands include ebookers (http://www.ebookers.com), a leading
full-service online travel company in Europe, serving customers through 13
country-specific websites; HotelClub (http://www.hotelclub.com), a global
accommodation specialist website offering hotels in approximately 120
countries; and RatesToGo (http://www.ratestogo.com), which offers last-minute
hotel reservations worldwide. The Away Network (http://www.away.com)
specializes in providing travel content for travelers seeking unique
experiences and activities. Orbitz for Business
(http://www.orbitzforbusiness.com) is a full-service managed business travel
program offering a portfolio of business travel products for small to large
companies. Orbitz Worldwide is listed on the New York Stock Exchange
(NYSE: OWW).
SOURCE Orbitz Worldwide, Inc.
investors, Shannon Burns, +1-312-260-2550, shannon.burns@orbitz.com, or media,
Brian Hoyt, +1-312-894-6890, bhoyt@orbitz.com, both of Orbitz Worldwide, Inc.
