HOMEAWAY INC

CIK:0001366684|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Listing	$ 106,484	$ 96,601	$ 301,281	$ 278,459
Other	24,198	20,511	74,272	58,591
Total revenue	130,682	117,112	375,553	337,050
Costs and expenses:
Cost of revenue (exclusive of amortization shown separately below)	19,361	16,926	58,472	50,291
Product development	22,058	20,212	65,235	56,952
Sales and marketing	42,963	42,234	143,850	117,251
General and administrative	23,874	22,995	72,115	69,467
Amortization expense	2,819	3,397	8,713	10,163
Total costs and expenses	111,075	105,764	348,385	304,124
Operating income	19,607	11,348	27,168	32,926
Other income (expense):
Interest expense	(4,718)	(4,373)	(13,971)	(8,842)
Interest income	927	552	2,426	1,117
Other expense, net	(338)	(1,434)	(633)	(6,452)
Total other income (expense)	(4,129)	(5,255)	(12,178)	(14,177)
Income before income taxes	15,478	6,093	14,990	18,749
Income tax expense	(5,625)	(845)	(9,757)	(5,909)
Net income	9,853	5,248	5,233	12,840
Less: Impact of noncontrolling interests, net of tax	(564)	336	(709)	(382)
Net income attributable to HomeAway, Inc.	$ 10,417	$ 4,912	$ 5,942	$ 13,222
Net income per share attributable to HomeAway Inc.:
Basic	$ 0.11	$ 0.05	$ 0.06	$ 0.14
Diluted	$ 0.11	$ 0.05	$ 0.06	$ 0.14
Weighted average number of shares outstanding:
Basic	95,716	94,106	95,162	93,507
Diluted	97,688	96,389	97,389	96,358

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 5,233	$ 12,840
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	16,204	12,091
Amortization of intangible assets	8,713	10,163
Amortization of debt discount and transaction costs	13,764	8,720
Amortization of premiums on securities and other	8,683	4,288
Stock-based compensation	37,487	35,582
Excess tax benefit related to stock-based compensation	(8,161)	(2,583)
Deferred income taxes	(1,368)	(435)
Net unrealized foreign exchange loss (gain)	15,564	(6,057)
Realized loss (gain) on foreign currency forwards	(15,081)	12,011
Changes in operating assets and liabilities, net of assets and liabilities assumed in business combinations:
Accounts receivable	(2,172)	(2,591)
Income tax receivable	(426)	(1,590)
Prepaid expenses and other current assets	(2,519)	(4,938)
Accounts payable	1,151	6,668
Accrued expenses	1,748	(3,394)
Income tax payable	7,087	1,272
Deferred revenue	29,667	25,392
Other non-current liabilities	3,520	3,976
Net cash provided by operating activities	119,094	111,415
Cash flows from investing activities
Acquisition of businesses, net of cash acquired		(17,847)
Change in restricted cash	122	166
Purchases of intangibles and other assets	(278)	(303)
Purchases and sales of non-marketable investments	(3,866)	(10,135)
Purchases of short-term investments	(379,387)	(473,331)
Proceeds from maturities and redemptions of marketable securities	272,022	23,048
Proceeds from sales of marketable securities	1,525	4,358
Net settlement of foreign currency forwards	15,081	(12,011)
Purchases of property and equipment	(23,792)	(20,456)
Net cash used in investing activities	(118,573)	(506,511)
Cash flows from financing activities
Proceeds from borrowings on convertible senior notes, net		390,978
Proceeds from issuance of warrants		38,278
Purchase of convertible note hedge		(85,853)
Other financing activities		(919)
Proceeds from exercise of options to purchase common stock	9,640	22,827
Excess tax benefit from stock-based compensation	8,161	2,583
Net cash provided by financing activities	17,801	367,894
Effect of exchange rate changes on cash and cash equivalents	(9,354)	(5,303)
Net increase (decrease) in cash and cash equivalents	8,968	(32,505)
Cash and cash equivalents at beginning of period	292,325	324,608
Cash and cash equivalents at end of period	301,293	292,103
Cash paid for interest	503	253
Cash paid for taxes, net of refunds	2,091	3,727
Supplemental disclosure of non-cash activities
Changes to accrued capital expenditures	2,455
Changes to redemption value of noncontrolling interests	$ 914	$ 851

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 301,293	$ 292,325
Short-term investments	618,343	520,844
Accounts receivable, net of allowance for doubtful accounts of $633 and $663 as of September 30, 2015 and December 31, 2014, respectively	24,019	23,189
Income tax receivable	1,680	1,900
Prepaid expenses and other current assets	18,269	17,913
Deferred tax assets	9,384	8,774
Total current assets	972,988	864,945
Property and equipment, net	60,773	56,173
Goodwill	460,049	493,671
Intangible assets, net	58,003	70,456
Non-marketable investments	39,549	35,285
Deferred tax assets	880	1,545
Other non-current assets	6,295	8,053
Total assets	1,598,537	1,530,128
Current liabilities:
Accounts payable	7,487	8,281
Income tax payable	907	1,344
Accrued expenses	50,446	50,255
Deferred revenue	193,769	170,522
Total current liabilities	252,609	230,402
Convertible senior notes, net	329,905	316,181
Deferred revenue, less current portion	2,981	3,179
Deferred tax liabilities	24,376	26,624
Other non-current liabilities	19,817	12,192
Total liabilities	$ 629,688	$ 588,578
Commitments and contingencies (see Note 6)
Redeemable noncontrolling interests (see Note 8)	$ 9,033	$ 9,742
Stockholders' equity:
Common stock: $0.0001 par value; 350,000,000 shares authorized; 96,162,374 and 94,515,344 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	10	9
Additional paid-in capital	1,076,292	1,022,586
Accumulated other comprehensive loss	(60,608)	(28,053)
Accumulated deficit	(55,878)	(62,734)
Total stockholders' equity	959,816	931,808
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 1,598,537	$ 1,530,128