Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. KAYAK Software Corp (1312928) 10-Q published on May 14, 2013 at 5:05 pm
Reporting Period: Mar 30, 2013
This quarterly report on Form 10-Q contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. The statements contained in this quarterly report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these statements by words such as “aim,” “anticipate,” “assume,” “believe,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “positioned,” “predict,” “should,” “target,” “will,” “would” and other similar expressions or words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements include: our belief that our accounting related estimates are reasonable, our belief in the credit quality of our financial investments, our belief in the ability to collect customer accounts, our belief in the reliability of the fair value of stock options, our intent to hold marketable securities to maturity, our belief that the straight-line method of depreciation reflects an appropriate allocation of costs, our belief that settlement of our shareholder litigation will settle all matters related to our merger, our belief that we could be subject to future litigation, our belief that the technologies we use are reliable and efficient, our belief that our data facilities are well suited to our current needs, our belief that brand marketing costs are relatively fixed, our belief that traffic and queries will continue to increase, our expectation to continue to invest in brand marketing and its results, our expectation to continue to invest in Europe, our expectation that revenue from international operations will grow faster than those in the U.S., our expectation that mobile applications will gain in popularity, our expectation to devote additional resources to mobile applications, our belief that mobile applications will contribute meaningful revenue to our business, our belief that marketing investments were the primary contributor to revenue growth, our belief that our cash balances are sufficient for at least the next twelve months, our expectation that we may make acquisitions and may need additional financing, our belief that the fair values of reporting units exceed the carrying value by a significant amount, our belief that we could enter into derivative arrangements, our belief that income from investments could decrease in the future, and our belief that the outcome of legal matters will not have a material adverse effect on our business. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of our forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from our expectations. Factors that may cause such differences include, but are not limited to, the risks described under “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 29, 2013.
In February 2013, the Financial Accounting Standards Board issued accounting guidance which requires entities to provide additional information about items reclassified out of accumulated other comprehensive income ("AOCI"). Changes in AOCI balances by component, both before tax and after tax, must be disclosed and significant items reclassified out of AOCI by component must be reported either on the face of the income statement or in a separate footnote to the financial statements. The accounting guidance is effective for public companies for fiscal years, and interim periods within those years, beginning after December 15, 2013. There were no reclassifications out of AOCI for the three months ended March 31, 2013 and 2012.
Cash flows used in operating activities were $8.5 million for the three months ended March 31, 2013 as compared to cash flows used in operating activities of $2.5 million for the three months ended March 31, 2012. Net income was $2.1 million and $4.1 million for the three months ended March 31, 2013 and 2012, respectively. Cash flows from non-cash adjustments were $4.6 million for the first three months of 2013 as compared to cash flows from non-cash adjustments of $4.1 million for the first three months of 2012. Cash used for working capital was $15.2 million for the first three months of 2013 as compared to cash used for working capital of $10.8 million in the first three months of 2012. The decrease in working capital is due to the timing of receipts from customers and payment to vendors.
Cash from financing activities was $3.1 million for the three months ended March 31, 2013 compared to cash from financing activities of $0.1 for the same period in 2012. Proceeds and tax benefits from the exercise of stock options increased to $1.5 million for the three months ended March 31, 2013 as compared to $0.2 million for the same period in 2012. The three months ended March 31, 2013 included proceeds of $1.5 million from the repayment of shareholder loans as compared to none for the same period in 2012.
You should carefully review and consider the information regarding certain factors which could materially affect our business, financial condition or future results set forth under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012. There have been no material changes from the factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012, although we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the Securities and Exchange Commission.