Financial Mines

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Archive for November 8th, 2012

Norwalk-based Priceline to buy Norwalk-based Kayak for $1.8 billion

Thursday, November 8, 2012 by:Rob Varnon
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Steve Hafner, CEO and co-founder of Kayak.com. File photo Stamford

The two travel pricing internet companies announced Thursday that Priceline will acquire Kayak for $1.8 billion in cash and stock offering.

Kayak went public in July and was founded in Norwalk about 8 years ago. The group that started the Kayak had deep experience at other travel websites and tech companies.

Steve Hafner, Kayak co-founder and CEO, was vice president of consumer travel at Orbitz, which he helped found in 1999. Terry Jones, Kayak’s chairman of the board, helped found Travelocity.com and served as its president and chief executive officer. Paul English, Kayak’s co-founder and chief technology officer, was a vice president of technology at Intuit Inc.

Here’s some of the official release from Kayak.

Priceline Group Acquisition of KAYAK

“Paul English and I started KAYAK eight years ago to create the best place to plan and book travel,” said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. “We’re excited to join the world’s premier online travel company. The Priceline Group’s global reach and expertise will accelerate our growth and help us further develop as a company.”

“KAYAK has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers,” said Priceline Group President and Chief Executive Officer Jeffery H. Boyd. “KAYAK also has world class technology and a tradition of innovation in building great user interfaces across multiple platforms and devices. We believe we can be helpful with KAYAK’s plans to build a global online travel brand.”

The board of directors of both companies approved the transaction, which is subject to KAYAK shareholder approval, customary closing conditions and regulatory approval. Until the transaction is closed, both companies will continue to operate independently.

Third Quarter 2012 Financial Results

In light of today’s announcement, the previously scheduled conference call to discuss third quarter 2012 financial results has been canceled.

“We generated record revenue and profits,” said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. “Our investments in product development, marketing, geographic expansion and mobile applications are paying off.”

  • Revenue: $78.6 million, a 29% increase from $61.2 million in the third quarter of 2011.
  • Adjusted EBITDA: $21.1 million, a 19% increase from $17.7 million in the third quarter of 2011.
  • Net Income: $8.0 million, a 14% increase from $7.0 million in the third quarter of 2011.
  • EPS: Both GAAP and non-GAAP EPS for the third quarter of 2012 include 5.0 million additional shares compared to same period in 2011. EPS is calculated based on GAAP and non-GAAP net income divided by 42.7 million weighted average diluted shares outstanding for the third quarter of 2012 and 37.7 million weighted average diluted shares outstanding for the same period in 2011.
  • GAAP EPS: $0.19, as compared to $0.18 in the third quarter of 2011.
  • Non-GAAP EPS: $0.26, as compared to $0.26 in the third quarter of 2011. Non-GAAP earnings-per-share excludes $4.1 million in stock based compensation and $1.4 million of amortization of intangibles.

CL&P to base NY NJ help in Stamford

Thursday, November 8, 2012 by:Rob Varnon
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N.Y. crews in Greenwich in 2011 helping to restore power after Irene. Greenwich Time photo

One day after declaring their work to restore power knocked out by Sandy, Connecticut Light & Power Co. is sending crews to the heavy hit regions in New York and New Jersey, but they will sleep, when they sleep, in Stamford.

CL&P said it has ample crews left to respond to any new outages.

Approximately 60 CL&P employees, including line workers, mechanics, supervisors, and safety professionals, will join the massive restoration effort in New York and possibly move on to assist in New Jersey.  The crews will stay on with their neighbor utilities for as long as needed, and will be joining others from Northeast Utilities, as well as 200 line workers from Hydro Quebec.

With hotel and housing options extremely scarce in New York, CL&P crews will continue to be based in Stamford, Connecticut.  The company has been working in partnership with Carl Kuehner, Chief Executive Officer of Building and Land Technology (BLT), the developers of Stamford’s Harbor Point, to turn a BLT apartment complex into hotel-style housing for crews.

You can say CL&P is returning the favor after New York crews came up to Connecticut to help restore power after Tropical Storm Irene hit the state in August of 2011.

CL&P had more than 800,000 outages after Sandy ripped through the state more than a week ago, and there are still thousands who are without power. The company said it will be unable to restore that service to customers, who will have to have wiring and equipment checked by building inspectors before service can be restored.

Banks open hotlines to take calls about mortgage payments after Sandy

Thursday, November 8, 2012 by:Rob Varnon
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The State Banking Department has published a guide for borrowers facing difficulties paying mortgages or dealing with property damage after Sandy blasted the region.

Here’s the update from Banking:

Connecticut residents that have experienced property damage, loss or financial hardship resulting from Hurricane Sandy are encouraged to contact their mortgage company immediately to discuss individual options for handling claims.
Residents that have a mortgage loan with one of the following companies should contact the number listed below.  If a mortgage company is not listed, residents should call the customer service number on the last mortgage statement or, if already working with a representative or single point of contact at their mortgage company, residents should call that contact directly.
*** Note that Connecticut residents should request instructions from the mortgage lender for filing insurance claims and should be cautioned to only work with insurance approved and/or licensed contractors for property repairs.
Bank of America:

  • All customers affected by Hurricane Sandy, including small business customers, can call 1-855-729-1764. The team answering this number is available 24 hours a day, is specially trained and is dedicated solely to this issue.
  • Customers can also reach out to Bank of America on Twitter @bofa_help, contact their usual bank representatives, or stop by any branch.  Small business banking experts are also available and reaching out to their small business customers in affected areas.  All Bank of America call centers, online banking and mobile banking also continue to be available.
  • Additional information about Bank of America’s Customer Assistance Program can be found at www.bankofamerica.com
  • To report damage to a vacant property that is serviced or owned by the bank, call: 1.800.852.8306 ext. 2158 or notify us at preservation.customerservice@safeguardproperties.com.
Capital One:
Customers affected by Hurricane Sandy should contact the following:
Mortgage:  1-800-933-9100, Option 2
Home Equity:  1-877-230-8515,  Option 2
Chase:
Customers affected by Hurricane Sandy should call 1-888-356-0023.
Citi:
  • Customer Service:  Call 1-800-283-7918 for general questions or inquiries.
  • Property Claims:  In the event of property damage or destruction as a result of the storm, please call 1-866-844-2198 (CitiMortgage Property Damage Claim Center).
GMAC:
Customers should contact the regular toll free hotline at 1-800-766-4622.
Homeward Residential:
Customers should contact the regular toll free hotline at 1-877-304-3100.
Nationstar:
Customers affected by Hurricane Sandy should call 1-888-480-2432.
Ocwen:
Customers should contact the regular toll free hotline at 1-800-746-2936.
Wells Fargo:
  • Mortgage:  If a customer’s home is damaged or the storm has created a financial hardship, customers should directly call the Disaster Assistance hotline at 1-888-818-9147 or 555-213-7700.  (Monday – Thursday 7:00 a.m. – 10:00 p.m. CST; Friday 7:00 a.m. – 9:00 p.m. CST; Saturday 8:00 a.m. – 2:00 p.m. CST).
  • Home Equity:  For customers with questions regarding their Home Equity loan, customers may call 1-866-249-5075 (Monday – Thursday, 7:00 a.m. to 8:00 p.m. CST; Friday 7:00 a.m. – 5:00 p.m. CST)
Wells Fargo customers affected by Hurricane Sandy in Maryland, Virginia, Washington, D.C., Delaware, Pennsylvania, New York, New Jersey and Connecticut with existing home mortgages should call (800) 678-7986 to inquire about payment options available to eligible customers and for guidance on handling property insurance loss claims.