Liberty TripAdvisor Holdings, Inc. :LTRPA-US: Earnings Analysis: Q1, 2017 By the Numbers : May 16, 2017

Liberty TripAdvisor Holdings, Inc. reports financial results for the quarter ended March 31, 2017.

We analyze the earnings along side the following peers of Liberty TripAdvisor Holdings, Inc. – Monarch Casino & Resort, Inc. and Caesars Acquisition Co. Class A (MCRI-US and CACQ-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 378 million, Net Earnings of USD -3 million.
  • Gross margins widened from 60.11% to 62.96% compared to the same period last year, operating (EBITDA) margins now 12.96% from 15.79%.
  • Year-on-year change in operating cash flow of 14.29% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth due to contribution of one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2017-03-31 2016-12-31 2016-09-30 2016-06-30 2016-03-31
Relevant Numbers (Quarterly)
Revenues (mil) 378 339 434 398 361
Revenue Growth (%YOY) 4.71 -1.74 0.46 -3.86 -3.48
Earnings (mil) -3 35 -1 -2 -12
Earnings Growth (%YOY) 75 252.17 66.67 71.43 -71.43
Net Margin (%) -0.79 10.32 -0.23 -0.5 -3.32
EPS -0.04 0.47 -0.01 -0.03 -0.16
Return on Equity (%) -0.22 2.56 -0.07 -0.15 -0.88
Return on Assets (%) -0.16 1.89 -0.05 -0.11 -0.66

Access our Ratings and Scores for Liberty TripAdvisor Holdings, Inc.

Market Share Versus Profits

Revenues History
Earnings History

LTRPA-US‘s change in revenue this period compared to the same period last year of 4.71% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that LTRPA-US is holding onto its market share. Also, for comparison purposes, revenues changed by 11.50% and earnings by -108.57% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings growth has been influenced by the year-on-year improvement in gross margins from 60.11% to 62.96%. However the company’s overhead costs have prevented it from fully capitalizing on these gross margin improvements. In fact, the company’s operating margins (EBITDA margins) showed no improvement over the same period last year.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Gross Margin Trend

Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet.

Gross Margin History
Working Capital Days History

LTRPA-US‘s improvement in gross margin has been accompanied by an improvement in its balance sheet as well. This suggests that gross margin improvements are likely from operating decisions and not accounting gimmicks. Its working capital days have declined to 140.83 days from 144.31 days for the same period last year.

Gross Margin Versus Working Capital Days

Quadrant label definitions. Hover to know more

Customer Financed, Cash Starved, Supplier Financed, Cash Rich

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

LTRPA-US‘s change in operating cash flow of 14.29% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings


The company’s operating (EBIT) margins contracted from 0.55% to -1.85%. In spite of this, the company’s earnings rose. This was influenced primarily by one-time items, which improved pretax margins from -1.39% to -1.32%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Liberty TripAdvisor Holdings, Inc.

Company Profile

Liberty TripAdvisor Holdings, Inc. engages in online advertising and commerce, through its subsidiaries, TripAdvisors and BuySeasons. It operates through the TripAdvisor and Corporate and Other segments. The TripAdvisors includes online travel community, aggregating reviews and opinions from its community of travelers about destinations, accommodations, restaurants, and activities throughout the world. The BuySeasons offers online retailer of costumes and party supplies. The company was founded on August 27, 2014 and is headquartered in Englewood, CO.

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